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Agenda Packet - 03-16-2021 CC HA Agenda - NO RESOLUTIONS
- CALIFORNIA NikTIONAL CI XAOORPORATfi ALEJANDRA SOTELO-SOLIS Mayor JOSE RODRIGUEZ Vice Mayor MARCUS BUSH Councilmember RON MORRISON Councilmember MONA RIOS Councilmember 1243 National City Blvd. National City, CA 91950 619-336-4240 Meeting agendas and minutes available on the City's website at WWW.NATIONALCITYCA. GOV AGENDA OF A REGULAR MEETING - NATIONAL CITY CITY COUNCIL/ COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY ONLINE ONLY MEETING https://www.nationalcityca.gov/webcast LIVE WEBCAST COUNCIL CHAMBERS CIVIC CENTER 1243 NATIONAL CITY BOULEVARD NATIONAL CITY, CALIFORNIA TUESDAY, MARCH 16, 2021 — 6:00 PM NOTICE: The health and well-being of National City residents, visitors, and employees during the COVID-19 outbreak remains our top priority. The City of National City is coordinating with the County of San Diego Health Human Services Agency, and other agencies to take measures to monitor and reduce the spread of the novel coronavirus (COVID-19). The World Health Organization has declared the outbreak a global pandemic and local and state emergencies have been declared providing reprieve from certain public meeting laws such as the Brown Act. As a result, the City Council Meeting will occur only online to ensure the safety of City residents, employees and the communities we serve. A live webcast of the meeting may be viewed on the city's website at www.nationalcityca.gov. For Public Comments see "PUBLIC COMMENTS" section below ORDER OF BUSINESS: Public sessions of all Regular Meetings of the City Council / Community Development Commission - Housing Authority (hereafter referred to as Elected Body) begin at 6:00 p.m. on the first and third Tuesday of each month. Public Hearings begin at 6:00 p.m. unless otherwise noted. Closed Meetings begin in Open Session at 5:00 p.m. or such other time as noted, and after announcing closed session items, convenes into a Closed Meeting. If a workshop is scheduled, the subject and time of the workshop will appear on the agenda. The Mayor and Council members also sit as the Chairperson and Members of the Board of the Community Development Commission (CDC). REPORTS: All open session agenda items and reports as well as all documents and writings distributed to the Elected Body less than 72 hours prior to the meeting, are available for review on the City's website at www.nationalcityca.gov. Regular Meetings of the Elected Body are webcast and archived on the City's website at www.nationalcityca.gov. PUBLIC COMMENTS: There are multiple ways you can make sure your opinions are heard and considered by our City Council as outlined below: Submit your public comment prior to the meeting: To submit a comment in writing, email PublicComment(c�nationalcityca.gov, provide the agenda item number and title of the item in the subject line of your email. Public comments or testimony is limited to up to three (3) minutes. If the comment is not related to a specific agenda item, 1 of 483 indicate General Public Comment in the subject line. All email comments received by 4:00 p.m. on the day of the meeting will be emailed to the City Council Members and made a part of the official record. ***Please note that email comments received prior to the meeting will no longer be read into the meeting's record but will be distributed to the City Council. If you would like to share your comments live during the meeting, please follow the instructions below. Register online and participate in live public comment during the meeting: To provide live public comment during the meeting, you must pre -register on the City's website at https://www.nationalcityca.qov/publiccomment by 4:00 p.m. on the day of the regular meeting to join the City Council Meeting. ***Please note that you do not need to pre -register to watch the meeting online, but you must pre -register if you wish to speak. Once registered, you will receive an email with a link from Zoom to join the live meeting. You can participate by phone or by computer. Please allow yourself time to log into Zoom before the start of the meeting to ensure you do not encounter any last-minute technical difficulties. ***Please note that members of the public will not be shown on video; they will be able to watch and listen and speak when called upon. Public microphones will be muted until it is your turn to comment. Each speaker is allowed up to three (3) minutes to address the City Council. Please be aware that the Mayor may limit the comments' length due to the number of persons wishing to speak or if comments become repetitious or unrelated. All comments are subject to the same rules as would otherwise govern speaker comments at the meeting. Speakers are asked to be respectful and courteous. Please address your comments to the City Council as a whole and avoid personal attacks against members of the public, City Council, and city staff. Questions about public comment or City Council protocols? Please contact the City Clerk's Office at (619) 336-4228 or via email at Clerknationalcityca.gov. INTERPRETATION SERVICES: To use the Zoom interpretation feature you must first Pre -Register on Zoom. Once logged into Zoom to use the interpretation feature, please scroll to the bottom of the Zoom screen (where the meeting controls are), click on the interpretation icon (world), and select English as your language. If you are joining using the Zoom mobile app (cell phone, tablet, etc.), please press the ellipsis (...), then Interpretation, and then choose your language. WRITTEN AGENDA: With limited exceptions, the Elected Body may take action only upon items appearing on the written agenda. Items not appearing on the agenda must be brought back on a subsequent agenda unless they are of a demonstrated emergency or urgent nature, and the need to take action on such items arose after the agenda was posted. CONSENT CALENDAR: Consent calendar items involve matters which are of a routine or noncontroversial nature. All consent items are adopted by approval of a single motion by the City Council. Prior to such approval, any item may be removed from the consent portion of the agenda 2 of 483 and separately considered, upon request of a Councilmember, a staff member, or a member of the public. Upon request, this agenda can be made available in appropriate alternative formats to persons with a disability in compliance with the Americans with Disabilities Act. Please contact the City Clerk's Office at (619) 336-4228 to request a disability -related modification or accommodation. Notification 24- hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. AVISO: La salud y el bienestar de los residentes, visitantes y empleados de National City durante el brote de COVID-19 sigue siendo nuestra maxima prioridad. El Ayuntamiento de la Ciudad de National City se esta coordinando con la Agencia de Salud y Servicios Humanos del Condado de San Diego y otras agencias para tomar medidas con el fin de monitorear y reducir la propagacion del nuevo coronavirus (COVID-19). La Organizacion Mundial de la Salud declaro el brote como una pandemia global y se han manifestado emergencias locales y estatales que resultan en la suspension de ciertas leyes de reuniones publicas, tal como la Ley Brown. Como resultado de ello, la junta del Concejo Municipal del Ayuntamiento se Ilevara a cabo solamente en linea para garantizar la seguridad de los residentes, empleados y comunidades locales que atendemos. Se podra ver una transmision en vivo de la junta en el sitio web del Ayuntamiento en www.nationalcityca.gov. Para comentarios publicos, vea la seccion "COMENTARIOS PUBLICOS" mas adelante. ORDEN DEL DIA: Las sesiones publicas de todas las juntas ordinarias del Concejo Municipal/Comision de Desarrollo Comunitario - Autoridad de Vivienda (en lo sucesivo denominado Organo Electo) inician a las 6:00 p.m. el primer y tercer martes de cada mes. Las audiencias publicas inician a las 6:00 p.m., a menos que se indique lo contrario. Las juntas cerradas inician en sesion abierta a las 5:00 p.m. o en cualquier otro momento que se indique, y tras anunciar los temas de la sesion cerrada, la junta se realiza como sesion cerrada. Si se programa una reunion de discusion y analisis, el tema y la hora de la misma apareceran en la agenda. La Alcaldesa y los Concejales se reunen por igual que el Presidente y los integrantes del Consejo de la Comision de Desarrollo Comunitario. INFORMES: Todos los temas e informes de la agenda de la sesion abierta, asi como todos los documentos y escritos entregados al Organo Electo menos de 72 horas antes de la sesion, apareceran en el sitio web del Ayuntamiento. Las juntas ordinarias del Organo Electo se transmiten por Internet y se archivan en el sitio web del Ayuntamiento en www.nationalcityca.gov. COMENTARIOS PUBLICOS: Hay varias formas en las que puede asegurarse de que sus opiniones sean escuchadas y consideradas por nuestro Concejo Municipal como se describe a continuacion: Envie su comentario publico antes de la sesion: Para enviar un comentario por escrito, envie un correo electronico a PublicCommentAnationalcityca.gov, proporcione el numero del tema o asunto de la agenda y el titulo del tema o asunto en la linea de asunto de su correo electronico. Los comentarios o testimonios publicos se limitan a tres (3) minutos. Si el comentario no se relaciona con un tema o asunto especifico de la agenda, indique Comentario Publico General en la linea de asunto. Todos los comentarios por correo electronico recibidos antes de las 4:00 p.m. del dia de la sesion se enviaran por correo electronico a los miembros del Concejo Municipal y formaran parte del acta oficial. 3 of 483 ***Tenga en cuenta que los comentarios por correo electronico recibidos antes de la sesion ya no se leeran en el registro de la sesion, sino que se distribuiran al Concejo Municipal. Si desea compartir sus comentarios en vivo durante la sesion, siga las instrucciones a continuacion. Registrese en linea y participe en los comentarios publicos en vivo durante la sesion: Para proporcionar comentarios publicos en vivo durante la sesion, debe registrarse previamente en el sitio web del Ayuntamiento en https://www.nationalcityca.qov/publiccomment antes de las 4:00 p.m. del dia de la junta ordinaria para incorporarse a la sesion del Concejo Municipal. ***Tenga presente que no necesita registrarse previamente para ver la sesion en linea, pero debe registrarse previamente si desea hablar. Una vez registrado, recibira un correo electronico con un enlace de Zoom para integrarse a la sesion en vivo. Puede participar por telefono o por computadora. Tomese el tiempo necesario para iniciar la reunion en Zoom antes del inicio de la sesion para asegurarse de no encontrar dificultades tecnicas de ultimo momento. ***Tenga presente que las personas del publico no se mostraran en video; podran observar, escuchar y hablar cuando se les solicite. Los microfonos publicos se silenciaran hasta que sea su turno de comentar. Cada orador tiene hasta tres (3) minutos para dirigirse al Concejo Municipal. Tenga en cuenta que la Alcaldesa puede limitar la extension de los comentarios debido a la cantidad de personas que deseen hablar o si los comentarios se vuelven repetitivos o no relacionados. Todos los comentarios estan sujetos a las mismas reglas que de otro modo regirian los comentarios de los oradores en la sesion. Se pide a los oradores que sean respetuosos y corteses. Dirija sus comentarios al Concejo Municipal en su conjunto y evite ataques personales contra personas del pCiblico, el Concejo Municipal y el personal del Ayuntamiento. 1,Preguntas sobre comentarios publicos o protocolos del Concejo Municipal? Comuniquese con la Oficina de la Secretaria del Ayuntamiento al telefono (619) 336-4228, o por correo electronico a Clerk@nationalcityca.gov. SERVICIO DE INTERPRETACION: Para utilizar la funcion de interpretacion zoom primero debe registrarse previamente en el sitio web de Zoom. Una vez que haya iniciado sesion en zoom para utilizar la funcion de interpretacion, favor de desplazarse a la parte inferior de la pantalla de Zoom (donde aparecen los controles). Haga clic en el icono de interpretacion (globo terraqueo), y seleccione "Spanish" (espanol). Si esta utilizando la aplicacion movil de Zoom (celular, tableta, etc.), presione los puntos suspensivos (...), luego "interpretation" y luego el idioma. AGENDA ESCRITA: Con contadas excepciones, el Organ() Electo puede tomar medidas unicamente sobre los temas que aparecen en la agenda escrita. Los temas que no aparezcan en la agenda deben aparecer en una agenda subsecuente, a menos que sean de emergencia o urgencia demostrada, y la necesidad de tomar medidas sobre esos temas haya surgido despues de haber sido publicada la agenda. CALENDARIO DE CONSENTIMIENTO: Los temas del calendario de consentimiento implican cuestiones de naturaleza rutinaria o no controvertida. Todos los temas de consentimiento se adoptan mediante la aprobacion de una sola mocion del Concejo Municipal. Antes de la aprobacion, cualquier 4 of 483 terra puede eliminarse de la parte de consentimiento de la agenda y considerarse aparte, a peticion de un concejal, individuo del personal del Ayuntamiento o persona del publico. Previa solicitud, esta agenda puede estar disponible en formatos alternativos apropiados para personas con discapacidades, en observancia de la Ley de Estadounidenses con Discapacidades. Llama al telefono (619) 336-4228 de la Oficina del Secretario del Ayuntamiento para solicitar una modificacion o adaptacion de acceso relativa a la discapacidad. Notificar 24 horas antes de la sesion permitira al Ayuntamiento hacer arreglos razonables para garantizar la accesibilidad a esta junta. 5 of 483 OPEN TO THE PUBLIC A. CITY COUNCIL CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE TO THE FLAG PUBLIC COMMENTS (THREE -MINUTE TIME LIMIT) PROCLAMATIONS AND CERTIFICATES 1. National City Celebrates Women's History Month. AWARDS AND RECOGNITIONS 2. Employee of the Quarter 2021 - Lizza Galindo -Rojas, Administrative Secretary. (Human Resources) PRESENTATIONS (FIVE-MINUTE TIME LIMIT) INTERVIEWS / APPOINTMENTS REGIONAL BOARDS AND COMMITTEE REPORTS (FIVE-MINUTE TIME LIMIT) CONSENT CALENDAR I. Motion of the City Council of the City of National City approving the waiving of the reading of the text of the Ordinances or Resolutions that are having a Public Hearing considered at this meeting and providing that such Ordinances or Resolutions shall be introduced and/or adopted after a reading of the title only. (City Clerk) 4. Approval of the Minutes of the Virtual Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City - Virtual Regular Meeting: February 2, 2021. (City Clerk) 5. Resolution of the City Council of the City of National City authorizing the installation of 606 feet of "No Parking" signage on both sides of Paraiso Court to provide fire access and travel clearance for emergency response vehicles (TSC No. 2021-01). (Engineering/Public Works) 6. Resolution of the City Council of the City of National City authorizing the installation of a blue curb disabled persons parking space with sign in front of the residence located at 32 "D" Avenue (TSC No. 2021-02). (Enctineerinq/Public Works) 6 of 483 7. Resolution of the City Council of the City of National City finding APR Construction, Inc. in default of the contract for the Civic Center ADA Accessibility Project, CIP No. 19-45 for materially violating the contract provisions by providing false information, consistent with Section 6.4.1 of the contract documents. (Engineering/Public Works) 8. Resolution of the City Council of the City of National City ratifying the Agreement between the City of National City and Meyers Nave for legal services in consultation with the City Attorney on matters related to the implementation of a commercial cannabis structure and program for the total not to exceed amount of $25,000.00 and approving the City Attorney's execution of same. (City Attorney) 9. Warrant Register #32 for the period of 2/03/21 through 2/09/21 in the amount of $2,455,294.45. (Finance) 10. Warrant Register #33 for the period of 2/10/21 through 2/16/21 in the amount of $261,842.17. (Finance) PUBLIC HEARINGS: ORDINANCES AND RESOLUTIONS 11. Public Hearing No. 1 of 2 for the U.S Department of Housing and Urban Development (HUD) 2021-2022 Annual Action Plan and the allocation of 2021-2022 HUD entitlement grant funds, program income, and funds remaining from completed projects to Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Program activities proposed for 2021-2022 Annual Action Plan. (Housing Authority) NON CONSENT RESOLUTIONS 12. Resolution of the City Council of the City of National City authorizing, 1) the City (Buyer) to utilize cooperative purchasing established through Sourcewell previously known as National Joint Powers Alliance (NJPA), consistent with Municipal Code Section 2.60.260 for cooperative purchasing, to purchase Tyler Technologies New World Computer Aided Dispatch (CAD) based on their member number 17730; and 2) finance through Capital Innovations for a seven (7) year lease purchase agreement; and 3) the Mayor to execute the Agreement with Tyler Technologies and Capital Innovations to replace outdated current police department CAD for a lease purchase agreement in the amount of $1,060,000. (Police) 13. Resolution of the City Council of the City of National City authorizing various Fiscal Year 2021 mid -year budget adjustments. (Finance) NEW BUSINESS 14. City of National City Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2020. (Finance) 7 of 483 15. Update on American Rescue Plan Act. (City Manager) 16. 2020 Housing Element Annual Progress Report pursuant to California Code Section 654000. (Planning) B. COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY CONSENT RESOLUTIONS - HOUSING AUTHORITY PUBLIC HEARINGS: RESOLUTIONS - HOUSING AUTHORITY NON CONSENT RESOLUTIONS - HOUSING AUTHORITY NEW BUSINESS - HOUSING AUTHORITY C. REPORTS STAFF REPORTS 17. City Manager Report. (City Manager) MAYOR AND CITY COUNCIL 18. Discussion regarding Public Comment at City Council Meetings. (City Manager) CLOSED SESSION CLOSED SESSION REPORT ADJOURNMENT Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City - Tuesday - April 6, 2021 - 6:00 p.m. - Council Chambers - National City, California. 8 of 483 The following page(s) contain the backup material for Agenda Item: National City Celebrates Women's History Month. Please scroll down to view the backup material. 9 of 483 Item # 03/16/21 National City Celebrates Women's History Month 10 of 483 The following page(s) contain the backup material for Agenda Item: Employee of the Quarter 2021 - Lizza Galindo -Rojas, Administrative Secretary. (Human Resources) Please scroll down to view the backup material. 11 of 483 -' CALIFORNIA — NATIONAL Ctry 4IVCP Rr OR !WED i CITY OF NATIONAL CITY MEMORANDUM DATE: March 4, 2021 TO: Brad Raulston, City Manager FROM: Robert J. Meteau, Jr., Human Resources Director SUBJECT: EMPLOYEE OF THE QUARTER PROGRAM The Employee Recognition Program communicates the City's appreciation for outstanding performance. In doing so, it recognizes employees who maintain high standards of personal conduct and make significant contributions to the workplace and community. The employee to be recognized for the 1st Quarter of calendar year 2021 is: Lizza Galindo -Rojas, Administrative Secretary By copy of this memo, the employee is invited to attend the Council meeting on Tuesday, March 16, 2021 to be recognized for her achievement and service. Attachment cc: Lizza Galindo -Rojas Mayor's Confidential Assistant Human Resources — Office File 12 of 483 -• CALIFORNIA -- NATIONAL, CITY nay I V(ORPORAT Performance Recognition Award Nomination Form I nominate Lizza Galindo -Rojas, Administrative Secretary for the Performance Recognition Award for the following reasons: Please state reason why your nominee should receive an award, (i.e., examples of service beyond requirements of position, exemplary service to the public, outstanding job performance, etc). Do not to exceed 150 total words. Please be as specific as possible when giving your examples. It is my pleasure to share how Lizza Rojas consistently contributes to the effectiveness of our organization and beyond the requirements of her position. With 16 years of service this past November, Lizza demonstrates pride in her duties and her community. Lizza is a true ambassador for National City and embodies the 7 C's of our organization. As the Administrative Secretary of our fast -paced HR depai tment, Lizza remains enthusiastic and committed while meeting competing deadlines. An example of outstanding job performance by Lizza was a last minute change revising and resubmitting the HR staff report for the City Council agenda and the new MOU. Just like the energizer bunny, Lizza made a difficult task look easy, all while having fun and a smile on her face. If you were to ask Lizza where she works, she would say with "Team HR in the MLK building." But in reality, Lizza works and contributes everywhere! You may have first seen Lizza as a new employee or official when you received your city ID, or seen Lizza setting -up HR training materials in the Fire Station and the Police Station. Or you may even have seen Lizza in the Library or Public Works facility while performing department visits with Team HR. Combined with her outgoing personality and commitment to customer service, Lizza embodies the community and culture of National City. It is my honor to present to you Lizza Galindo -Rojas. FORWARD COMPLETED NOMINATION TO: National City Performance Recognition Program Human Resources Department Nominated by: Robert J. Meteau, Human Resources Director Signature: Date: 02/22/21 13 of 483 The following page(s) contain the backup material for Agenda Item: Motion of the City Council of the City of National City approving the waiving of the reading of the text of the Ordinances or Resolutions that are having a Public Hearing considered at this meeting and providing that such Ordinances or Resolutions shall be introduced and/or adopted after a reading of the title only. (City Clerk) Please scroll down to view the backup material. 14 of 483 Item # 03/16/21 MOTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE WAIVING OF THE READING OF THE TEXT OF THE ORDINANCES OR RESOLUTIONS THAT ARE HAVING A PUBLIC HEARING CONSIDERED AT THIS MEETING AND PROVIDING THAT SUCH ORDINANCES OR RESOLUTIONS SHALL BE INTRODUCED AND/OR ADOPTED AFTER A READING OF THE TITLE ONLY. (City Clerk) 15 of 483 The following page(s) contain the backup material for Agenda Item: Approval of the Minutes of the Virtual Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City - Virtual Regular Meeting: February 2, 2021. (City Clerk) Please scroll down to view the backup material. 16 of 483 Item # 03-16-2021 APPROVAL OF THE MINUTES OF THE REGULAR MEETINGS MINUTES OF THE VIRTUAL REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY Virtual Regular Meeting: February 2, 2021 (City Clerk) 17 of 483 t— CALIFORNIA -0 NATIONAL CITy INCORPORATRD ,l MINUTES OF THE VIRTUAL REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY February 2, 2021 This meeting was conducted utilizing teleconferencing and electronic means consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The City Council minutes are prepared and ordered to correspond to the City Council Agenda. Agenda Items can be taken out of order during the meeting. The Agenda Items were considered in the order presented. A. CITY COUNCIL CALL TO ORDER The meeting was called to order at 6:04 p.m. by Mayor Sotelo-Solis. ROLL CALL Councilmembers present: Bush, Morrison, Rios, Rodriguez, Sotelo-Solis Councilmembers absent: None Other Elected Officials present: Beauchamp, Molina Administrative Officials present: Raulston, Winney, Bell, Chapel, Parra, Vergara, Denham, Aguirre, Lopez, Tellez, Becerra, Meteau, Davies, Yano, Rose Williams, Duong, and Olson. Meeting briefly paused due to Councilmember Bush having technical difficulties. 6:05 p.m. — 6:07 p.m. Roll Call was called again by City Clerk Molina with all members present. Councilmember Bush still having camera issues did confirm verbally his attendance. Councilmember Bush was available on camera at 6:18 p.m. PLEDGE OF ALLEGIANCE TO THE FLAG Councilmember Morrison led the Pledge of Allegiance. PUBLIC COMMENTS Two (2) public comments received: Moon Coyote (cannabis support) and Rebecca Rapp (cannabis opposition). Read into the record by City Clerk Molina. PROCLAMATIONS AND CERTIFICATES No agenda items. Page 1 of 6 18 of 483 City Council Meeting Minutes February 2, 2021 AWARDS AND RECOGNITIONS No agenda items. PRESENTATION 1. County of San Diego Partnership on Vaccine Rollout. City Manager Raulston provided a video presentation and introduced Chief of Emergency Services Parra and County of San Diego and Health and Human Services Agency (COSD HHSA) representative Barbara Jimenez who provided an update and information on the COVID-19 vaccination efforts within the National City community and the San Diego County partnership on vaccine roll -out and testing. INTERVIEWS / APPOINTMENTS No agenda items. REGIONAL BOARDS AND COMMITTEE REPORTS None. CONSENT CALENDAR Councilmember Bush pulled Item 4 from the Consent Calendar for discussion. Public Comments: None ACTION: Motion by Councilmember Morrison, seconded by Councilmember Rios, to approve the Consent Calendar Items 2, 3, and 5 through 7. Motion carried by unanimous vote. 2. Motion of the City Council of the City of National City approving the waiving of the reading of the text of the Ordinances or Resolutions that are having a Public Hearing considered at this meeting and providing that such Ordinances or Resolutions shall be introduced and/or adopted after a reading of the title only. 3. Adopted Resolution No. 2021-03. Resolution of the City Council of the City of National City: 1) accepting the work performed by Portillo Concrete, Inc. for the Division Street — Euclid Avenue to Harbison Avenue Bicycle Improvements, CIP No. 19-17; 2) approving the final contract amount of $531,571.79; 5) ratifying the release of retention in the amount of $26,578.59; and 6) ratifying the signing of the Notice of Completion for the project. 5. Ratified Warrant Register #25 for the period of 12/16/20 through 12/22/20 in the amount of $552,952.55. 6. Ratified Warrant Register #26 for the period of 12/23/20 through 12/29/20 in the amount of $1,113,274.01. 7. Ratified Warrant Register #27 for the period of 12/30/20 through 1/05/21 in the amount of $1,334,676.58. Page 2 of 6 19 of 483 City Council Meeting Minutes February 2, 2021 ITEM PULLED FROM CONSENT CALENDAR FOR DISCUSSION 4. Resolution of the City Council of the City of National City waiving the formal bid process pursuant to National City Municipal Code Section 2.60.260 regarding cooperative purchasing and authorizing the City to piggyback onto the County of San Diego's Purchase Order 562779-0 with Ford of Chula Vista for the purchase of three (3) new 2021 Ford AWD Police Interceptor K8A PEG 500A SUVs in an amount not to exceed $118,881.03. Councilmember Bush asked questions of Staff regarding the need and timing for this purchase for Item 4. Chief of Police Tellez and City Manager Raulston provided responses for Council. Public Comment: One (1) public comment received from Moon Coyote (in opposition). Read into the record by City Clerk Molina. ACTION: Motion by Mayor Sotelo-Solis, seconded by Councilmember Morrison, to adopt Resolution No. 2021-04. Motion carried by 4-1 vote with Councilmember Bush voting No. PUBLIC HEARINGS: ORDINANCES AND RESOLUTIONS No agenda items. NON CONSENT RESOLUTIONS 8. Resolution of the City Council of the City of National City: (1) approving an Affordable Housing Density Bonus Agreement with Kimball Apartments, LLC, a California limited liability company, restricting the rent and occupancy of five (5) units to moderate income households in exchange for one density bonus concession pursuant to California Government Code Sections 65915 — 65918 for the development of 52 housing units located at 1126 E 8th Street in National City; and (2) approving a Subordination and Intercreditor Agreement with Citizens Business Bank subordinating said Affordable Housing Density Bonus Agreement. City Manager Raulston pulled the Item from the agenda to be heard at a future meeting. Public Comments: None ACTION: Motion by Mayor Sotelo-Solis, seconded by Councilmember Morrison, to continue the Item at a future Council meeting. Motion carried by unanimous vote. 9. Resolution of the City Council of the City of National City: 1) authorizing the Mayor to execute a Power Your Drive for Parks Public Electric Vehicle Charging Program Participation Agreement with San Diego Gas & Electric Company (SDG&E) for the installation of six Electric Vehicle Charging Stations, associated equipment and infrastructure, at Las Palmas Park (located at 1810 E. 22nd Street) to be used by the public, at their own expense, as part of SDG&E's "Power Your Drive for Parks" Program, and 2) granting and authorizing the recordation of an easement on parcel No. 561-360-35-00 to SDG&E for the installation of electric vehicle charging station infrastructure. Page 3 of 6 20 of 483 City Council Meeting Minutes February 2, 2021 City Manager Raulston introduced the Item. Director Yano, Deputy City Engineer Lopez, along with representatives of SDG&E Clean Transportation Customer Solutions: Manager Lianna Rios and Project Manager Anthony Aguirre gave the report and presentation. Public Comments: None ACTION: Motion by Councilmember Bush, seconded by Councilmember Morrison, to adopt the Resolution No. 2021-06. Motion carried by 4-1 vote with Vice -Mayor Rodriguez absent. Vice -Mayor Rodriguez away from the dais at 7:42 p.m. — returned 7:44 p.m. 10. Resolution of the City Council of the City of National City: 1) awarding a contract to Eagle Paving Company, Inc. in the not -to -exceed amount of $1,086,911.00 for the Sweetwater Road Safety Enhancement Project, CIP No. 19-12; 2) authorizing a 15% contingency in the amount of $163,036.65 for any unforeseen changes; and 3) authorizing the Mayor to execute the contract. Mayor Sotelo-Solis introduced the Item and Director of Engineering Yano gave the report and PowerPoint Presentation. Public Comments: None ACTION: Motion by Councilmember Morrison, seconded by Councilmember Bush, to adopt the Resolution No. 2021-07. Motion carried by unanimous vote. 11. Resolution of the City Council of the City of National City, California, approving update to City Council Policy No. 107 entitled: Appointments to Boards, Commissions and Committees. Item continued from the January 19, 2021, City Council Meeting. Mayor Sotelo-Solis introduced the Item and Assistant City Manager Winney who gave the report and PowerPoint Presentation. Public Comments: Two (2) public comments received from Moon Coyote (opposition) and Ted Godshalk (opposition). Read into the record by City Clerk Molina. ACTION: Motion by Councilmember Rios, seconded by Councilmember Bush, to adopt the Resolution with amendments to include: 1) If a mayoral appointment is not approved by Council confirmation, then that applicant is to be removed from the candidate pool and the appointment is to return to a future Council meeting for substitute mayoral appointment. 2) Changes to Policy #107, Section D #8, Council Appointments, Interview Process: (a) Subsection a - Remove the language "...and the two (2) questions will be asked of each applicant on behalf of the City Council", (b) Subsection b - Change time each applicant is given for introductions from one (1) minute to two (2) minutes, (c) Remove Subsections C through G of draft, and Page 4 of 6 21 of 483 City Council Meeting Minutes February 2, 2021 (d) Add new Subsection c "Mayor and City Councilmembers will ask questions of each applicant. All applicants must be asked the same questions." 3) Add to Section D #13 that in addition to the requirement that the Chair be a resident of the City, City Council added that the Vice -Chairperson must also be a resident. Councilmember Morrison made a substitute motion to bring this item back to Council in October 2021, seconded by Vice -Mayor Rodriguez. Motion failed by 2-3 vote. Ayes: Morrison, Rodriguez Noes: Bush, Rios, Sotelo-Solis Original motion to adopt the Resolution with amendments was considered. Motion passed by 3-2 vote. Ayes: Bush, Rios, Sotelo-Solis Noes: Morrison, Rodriguez NEW BUSINESS There were no items. B. COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY No agenda items. C. REPORTS STAFF REPORTS 12. Presentation on City -owned Real Property available for future development. Mayor Sotelo-Solis introduced City Manager Raulston gave the report and PowerPoint Presentation along with Director of Housing Authority Aguirre and Property Agent Greg Rose. Received and Filed. 13. City Manager Report. City Manager Raulston gave an update on the COVID-19, regarding restaurant opening, vaccine roll -outs and testing. Received and Filed. MAYOR AND CITY COUNCIL City Treasurer Beauchamp spoke about the COVID-19 vaccine. He received the vaccine at the MLK site in National City. He thanked City Staff for the work on roads and parking. He pointed out the moneys paid for health insurance to pensioners, per the warrants brought forth at this meeting. Page 5 of 6 22 of 483 City Council Meeting Minutes February 2, 2021 Councilmember Bush wished the community a Happy Black History Month. He highlighted the need to talk about race issues and acknowledged the local Black leaders in National City's history. Councilmember Morrison commented on the trends seen in COVID-19 cases and looks forward to observing the affects based on increased inoculations. Councilmember Rios provided an update on Sweetwater Authority's planned tests and alerted the community that changes in odor and color may occur. Encouraged residents to contact the Sweetwater Authority if change is noticed. She also brought to Staff's attention the federal funds available to cities, through FEMA, for eligible reimbursements of COVID-19 services. Vice -Mayor Rodriguez wished the community a Happy Black History Month. He acknowledged historical moments addressing human rights in National City. Mayor Sotelo-Solis shared that a proclamation to formally recognize Black History Month in National City is forthcoming. She reminded the community about the distribution of COVID- 19 safety kits occurring February 4, 2021. One -thousand (1000) kits will be provided on a first -come -first -served basis. She acknowledged the partnerships that make this possible for National City residents. CLOSED SESSION No agenda items. CLOSED SESSION REPORT No agenda items. ADJOURNMENT Mayor Sotelo-Solis adjourned the meeting to the next Regular Meeting of the City Council and Community Development Commission of the City of National City to be held Tuesday, February 16, 2021 at 6:00 PM via teleconference. The meeting adjourned at 9:24 p.m. City Clerk The foregoing minutes were approved at the Regular Meeting of March 16, 2021. Mayor Page 6 of 6 23 of 483 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing the installation of 606 feet of "No Parking" signage on both sides of Paraiso Court to provide fire access and travel clearance for emergency response vehicles (TSC No. 2021-01). (Engineering/Public Works) Please scroll down to view the backup material. 24 of 483 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: March 16, 2021 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the installation of 606 feet of "No Parking" signage on both sides of Paraiso Court to provide fire access and travel clearance for emergency response vehicles (TSC No. 2021-01). PREPARED BY: Carla Hutchinson, Assistant Engineer - CivitCA , DEPARTMENT: E e ring/Public Works PHONE: 619-336-4388 APPROVED BY: EXPLANATION: See attached. FINANCIAL STATEMENT: ACCOUNT NO. 1N/A 1 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt Resolution authorizing installation of 606 feet of "No Parking" signage on both sides of Paraiso Court to provide fire access & travel clearance for emergency response vehicles. BOARD / COMMISSION RECOMMENDATION: At their meeting on February 10, 2021, the Traffic Safety Committee approved staff's recommendation to install "No Parking" signage on both sides of Paraiso Court. ATTACHMENTS: 1. Explanation w/ Exhibit 2. Staff Report to the Traffic Safety Committee on February 10, 2021 (TSC No. 2021-01) 3. Resolution 25 of 483 EXPLANATION The City's Parking Enforcement Division has requested the installation of "No Parking" signs on both sides of Paraiso Court. Parking Enforcement staff expressed concerns that Paraiso Court is too narrow and that vehicles park on both sides of the street, which does not allow access for emergency response vehicles. Parking Enforcement proposed the installation of a "No Parking" signage, which would enhance access and travel clearance for emergency response vehicles, on Paraiso Court. Staff visited site. Paraiso Court is located in a residential area between Norton Avenue and Palm Avenue and is a 2-lane local roadway with unrestricted parallel parking on both sides of the street. Staff took measurements on Paraiso Court and confirmed that this street is 20 feet wide. California's 2019 Fire Code, Chapter 5, Section 503.1.1 states: "The required width of emergency fire apparatus access roads shall not be obstructed in any manner, including parking of vehicles. All access roads shall be no less than 20 feet wide..." Staff observed that when vehicles are parked on both sides of Paraiso Court, the travel way narrows to 12 feet or less. Therefore, parking must be restricted on both sides of the street to ensure compliance with the California Fire Code. Staff recommends the installation of "No Parking" signage on both sides of Paraiso Court. Staff sent notices to area property owners and tenants, inviting them to attend the Traffic Safety Committee Meeting and/or contact staff with any questions. This item was presented to the Traffic Safety Committee on February 10, 2021. Staff presented the results of the site evaluation and after discussion, the Traffic Safety Committee voted to approve staffs recommendation to install "No Parking" signage on both sides of Paraiso Court to provide fire access & travel clearance for emergency response vehicles. If approved by City Council, all work will be performed by City Public Works. 26 of 483 Location Map with Recommended Enhancements (TSC Item: 2021-01) Paraiso Cou 606' of proposed "No Parking" signs to provide access & travel clearance for emergency response vehicles Existing entrance to carport parking 27 of 483 ITEM TITLE: NATIONAL CITY TRAFFIC SAFETY COMMITTEE AGENDA REPORT FOR FEBRUARY 10, 2021 1 REQUEST TO INSTALL 606 FEET OF "NO PARKING" SIGNAGE ON BOTH SIDES OF PARAISO COURT TO PROVIDE FIRE ACCESS & TRAVEL CLEARANCE FOR EMERGENCY RESPONSE VEHICLES. PREPARED BY: Carla Hutchinson, Assistant Engineer - Civil Engineering & Public Works Department DISCUSSION: The City's Parking Enforcement Division has requested the installation of "No Parking" signs on both sides of Paraiso Court. Parking Enforcement staff expressed concerns that Paraiso Court is too narrow and that vehicles park on both sides of the street, which does not allow access for emergency response vehicles. Parking Enforcement proposed the installation of a "No Parking" signage, which would enhance access and travel clearance for emergency response vehicles, on Paraiso Court. Staff visited site. Paraiso Court is located in a residential area between Norton Avenue and Palm Avenue and is a 2-lane local roadway with unrestricted parallel parking on both sides of the street. Staff took measurements on Paraiso Court and confirmed that this street is 20 feet wide. California's 2019 Fire Code, Chapter 5, Section 503.1.1 states: "The required width of emergency fire apparatus access roads shall not be obstructed in any manner, including parking of vehicles. All access roads shall be no less than 20 feet wide..." Staff observed that when vehicles are parked on both sides of Paraiso Court, the travel way narrows to 12 feet or less. Therefore, parking must be restricted on both sides of the street to ensure compliance with the California Fire Code. Staff recommends the installation of "No Parking" signage on both sides of Paraiso Court. Staff sent notices to area property owners and tenants, inviting them to attend the Traffic Safety Committee Meeting and/or contact staff with any questions. STAFF RECOMMENDATION: Based on the evaluation of existing conditions, staff recommends the installation of 606 feet of "No Parking" signage on both sides of Paraiso Court to provide access and travel clearance for emergency response vehicles. If approved by City Council, all work will be performed by City Public Works. EXHIBITS: 1. Public Request 2. Public Notice 3. Location Map 4. Photos 2021-01 28 of 483 Carla Hutchinson Ink From: Sent: To: Subject: Attachments: Tirza Gonzales on behalf of Engineering Monday, June 15, 2020 2:22 PM Carla Hutchinson; Luca Zappiello FW: 14001311( Paraiso Ct. 20200612...080524 jpg; 20200612_080607jpg; 20200612 080731 jpg Follow Up Flag: Follow up Flag Status: Completed Please see below. Code Enforcement officer reporting street is potentially too narrow for emergency vehicles. Ti rza Gonzales Management Analyst II City of National City EngineerIng & Public Works Department 1243 National City Blvd. National City, CA 91950 "Office: (619) 336-4380 Direct: (619j 336-4318 Fax: (619)336-4397 Email: tgomales @nation alcitvca.gov The Clty of National City is open Monday through Thursday from 7:00 a.m. —6:00 p.m.; Offices are closed an Fridays. For more information, please visit www.nationalcItyca.go}!. For more Information regarding Capital Projects, please visit www,nationalcitvorniects.co . From: Dionisia Trejo Sent: Monday, June 15, 2020 10:20 AM To: Engineering <Engineering@nationalcityca.gov> Subject: FW:1400BIk Paraiso Ct. FYI From: Lena Propps Sent: Friday, June 12, 2020 8:51 AM To: Dionisia Trejo <DTreiojnationalcityca.gov> Cc: Joe Olson <lolson@3nationalcityca,,gov>; Armando Vergara </ errara@nationalcityca.gov>; Alfredo Cabal <acabaignatlonalcityca.gov>; Luz Quezada<IctuezadagcOnatlonalcltyca.gov> Subject:1400Blk Paraiso Ct. Dio, 1 29 of 483 Unfortunately there is nothing l can legally do regarding vehicles parking on both sides of the street. This , would be an engineering issue, for them to evaluate. I have enclosed some photos to show how difficult It would be for a fire truck to get through to the homes in the back, or to dump trash cans. Please forward this email to engineering. Thanks Lena Sent from my Verizon, Samsung Galaxy smartphone Get Outlook for Andj id From: Dionisia Trejo <DTrelo@nationals ca gov> Sent: Thursday, June 11, 2020 7:14:03 AM To: Lena Propps <Ioro os@lnationalcitvca.Kov> Cc: Joe Olson <lolson@nationalcitvca.gov>; Armando Vergara <AVer ara nationalcl ca. ov>; Alfredo Cabal <acabalaDnationalcityca.gov>; Luz Quezada <guezada(7a nationaicityca.gov> Subject: MAIN LINE VM Paraiso Ct. off of Norton Avenue People park on both sides of street Trash truck was not able to get In and left. A fire truck will not be able to get thru if needed. 6/10 @ 8:50 am 2 30 of 483 • . . , • . • . . • 7.k; ' • -4:1741t; • • • ' • . . • :11.0;4; EA :15.S1 • ...** • .45tV":3; - • tt..0z../orv:Yr*,•-s-i;eit,40‘Ariv, s.4 2 • , , • • fi.i.T.s.4 V , 31 of 483 February 3, 2021 Resident/Property Owner CALIFORNIA -- NATIONAL Cfly XBC� O A. is Subject: TRAFFIC SAFETY COMMITTEE (TSC) ITEM NO. 2021-01 REQUEST TO INSTALL "NO PARKING" SIGNS ON BOTH SIDES OF PARAISO COURT TO PROVIDE FIRE ACCESS & TRAVEL CLEARANCE FOR EMERGENCY RESPONSE VEHICLES. Dear Sir/Madame: The City of National City would like to invite you to our next public Traffic Safety Committee Conference CaII scheduled for Wednesday, February 10, 2021, at 1:00 P.M. via Zoom. Please use the following information to call -in to the meeting during the scheduled time: Join Zoom Meeting from computer https://zoom.us/i/92648548029?pwd=TERNMXRmQTFibHJhaThXNVUvUzV6QT09 Join Zoom Meeting by phone +1 669-900-9128 Meeting ID: 926 4854 8029 Passcode: 816340 If you have any questions, comments, and/or concerns, please contact the Engineering Department at 619-336-4380 and reference Traffic Safety Committee Item Number 2021-01. Sincerely, Roberto Yano, P.E. City Engineer/Director of Public Works RY:ch Enclosure: Location Map 2021-01 1234 National City Boulevard, National City, CA 91950-6530 (619) 336-4380 Fax (619) 336-4397 engineering@nationalcityca.gov 32 of 483 Location Map with Recommended Enhancements (TSC Item: 2021-01) 606' of proposed "No Parking" signs to provide access & travel clearance for emergency response vehicles Existing entrance to carport parking 33 of 483 Location of proposed "No Parking" signs on both sides of Paraiso Court (looking east) Location of proposed "No Parking" signs on both sides of Paraiso Court (looking east) 34 of 483 Location of proposed "No Parking" signs on both sides of Paraiso Court (looking south) Location of proposed "No Parking" signs on both sides of Paraiso Court (looking north) 35 of 483 Location of proposed "No Parking" signs on both sides of Paraiso Court (looking west) 36 of 483 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing the installation of a blue curb disabled persons parking space with sign in front of the residence located at 32 "D" Avenue (TSC No. 2021-02). (Engineering/Public Works) Please scroll down to view the backup material. 37 of 483 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: March 16, 2021 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the installation of a blue curb disabled persons parking space with sign in front of the residence located at 32 "D" Avenue (TSC No. 2021-02). PREPARED BY: Carla Hutchinson, Assistant Engineer - Civil , DEPARTMENT: E PHONE: 619-336-4388 APPROVED BY: EXPLANATION: See attached. blic Works FINANCIAL STATEMENT: ACCOUNT NO. 'N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt Resolution authorizing installation of a blue curb disabled persons parking space with sign in front of the residence located at 32 "D" Avenue. BOARD / COMMISSION RECOMMENDATION: At their meeting on February 10, 2021, the Traffic Safety Committee approved staff's recommendation to install a blue curb disabled persons parking space with sign in front of the residence located at 32 "D" Avenue. ATTACHMENTS: 1. Explanation w/ Exhibit 2. Staff Report to the Traffic Safety Committee on February 10, 2021 (TSC No. 2021-02) 3. Resolution :iti OT 4031 EXPLANATION The resident of 32 "D" Avenue, has requested a blue curb disabled persons parking space in front of her residence. The resident possesses a valid disabled persons placard from the California Department of Motor Vehicles. The resident stated that it is difficult for her to find parking in front of her property due to the high demand of parking in the area and that a disabled persons parking space in front of her house would provide easier access to the house. Staff visited the site and observed that the resident's residence has a driveway entrance and a garage. With her permission and supervision, staff measured the driveway and garage. The driveway is 18 feet long by 18 feet wide with a slope of approximately 8%. The garage is 16 feet long by 10 feet wide with negligible slope. In order to accommodate a vehicle with a disabled driver or passenger, the slope must be 2% or less. The minimum dimensions for a garage or driveway to accommodate a vehicle with a disabled driver or passenger is 20 feet long by 12 feet wide. These two conditions are not met since the dimensions of the garage and driveway do not meet the minimum parking requirements for disabled persons. In addition, the maximum slope condition is not met since the slope of the driveway exceeds 2%. The City Council has adopted a policy which is used to evaluate requests for disabled persons parking spaces. The City Council Disabled Persons Parking Policy requirements for "Special Hardship" cases are as follows: 1. Applicant (or guardian) must be in possession of valid license plates or placard for "disabled persons" or "disabled veterans". This condition is met. 2. The proposed disabled parking space must be in front (or side if on a corner lot) of the applicant's (or guardian's) place of residence. This condition is met. 3. The residence must not have useable off-street parking available or an off-street space available that may be converted into disabled parking. This condition is met. This item was presented to the Traffic Safety Committee on February 10, 2021. Staff presented the results of the site evaluation and after discussion, the Traffic Safety Committee voted to approve staff's recommendation to install a blue curb disabled persons parking space with sign, since all three conditions of the City Council Disabled Persons Parking Policy for "Special Hardship" cases are met. The applicant was informed that handicap parking spaces do not constitute "personal reserved parking" and that any person with valid "disabled persons" license plates or placards may park in handicap spaces. If approved by City Council, all work will be performed by City Public Works 39 of 483 Location Map with Recommended Enhancements (TSC Item: 2021-02) PARKING ONLY Proposed blue curb disabled persons parking space 40 of 483 ITEM TITLE: NATIONAL CITY TRAFFIC SAFETY COMMITTEE AGENDA REPORT FOR FEBRUARY 10, 2021 REQUEST FOR INSTALLATION OF A BLUE CURB DISABLED PERSONS PARKING SPACE WITH SIGNAGE IN FRONT OF THE RESIDENCE AT 32 "D" AVENUE PREPARED BY: Carla Hutchinson, Assistant Engineer— Civil Engineering & Public Works Department DISCUSSION: The resident of 32 "D" Avenue, has requested a blue curb disabled persons parking space in front of her residence. The resident possesses a valid disabled persons placard from the California Department of Motor Vehicles. The resident stated that it is difficult for her to find parking in front of her property due to the high demand of parking in the area and that a disabled persons parking space in front of her house would provide easier access to the house. Staff visited the site and observed that the resident's residence has a driveway entrance and a garage. With her permission and supervision, staff measured the driveway and garage. The driveway is '18 feet long by 18 feet wide with a slope of approximately 8%. The garage is 16 feet long by 10 feet wide with negligible slope. In order to accommodate a vehicle with a disabled driver or passenger, the slope must be 2% or less. The minimum dimensions for a garage or driveway to accommodate a vehicle with a disabled driver or passenger is 20 feet long by 12 feet wide. These two conditions are not met since the dimensions of the garage and driveway do not meet the minimum parking requirements for disabled persons. In addition, the maximum slope condition is not met since the slope of the driveway exceeds 2%. The City Council has adopted a policy which is used to evaluate requests for disabled persons parking spaces. The City Council Disabled Persons Parking Policy requirements for "Special Hardship" cases are as follows: 1. Applicant (or guardian) must be in possession of valid license plates or placard for "disabled persons" or "disabled veterans". This condition is met. 2. The proposed disabled parking space must be in front (or side if on a corner lot) of the applicant's (or guardian's) place of residence. This condition is met. 3. The residence must not have useable off-street parking available or an off-street space available that may be converted into disabled parking. This condition is met. It shall be noted that disabled persons parking spaces do not constitute "personal reserved parking" and that any person with valid "disabled persons" license plates or placards may park in handicap spaces. -3- 41 of 483 STAFF RECOMMENDATION: Since all three conditions of the City Council Disabled Persons Parking Policy for "Special Hardship" cases are met, staff recommends the installation of a blue curb disabled persons parking space with signage in front of the residence at 32 "D Avenue. EXHIBITS: 1. Public Request Form 2. Public Notice 3. Location Map 4. Photos 5. City Council Disabled Persons Parking Policy 2021-02 -4- 42 of 483 REGE. E ENG & Mai' IF DER: MS MANED kE' RUM J'4 J& PAWN SPACE n. Haase Amax Om fp i rag, croatfac4, which re7 ash gle a si a stag the Traffic Safety, COTILITir404 MCV5 C y Ctakladi! Mandan Erarl rdia3 €m brie a rinse cub c7"esibl ecl persons ratuft space ptaced froid a yea resit' in, l� he Warmed that. an Mee ends pa in spaces are ss Ier k 'dare �� �"� aF , �S Qua xretkie tra posessiort of a &sec/ad pawns placard-0 Deems pPala FegaTk aawal to ar kta tea; S SpaVe far op to 72- cony rmos haws. :) Sara yam possess a itralH &aka pees s{ rare issreel by the c .E 3rt84 Department of Motor Vehnkke mivp „DIES El NO 63 Yam, pima Wade a copy therdf �sa3 com^uas your swans, address, placard guilder, and exptaVora data, 2) Domes p our resEarace lime a garage? V Y , the gar 5, =' altet7921 $0 parka verlria (ag,nlrs?i. n of Nix 22 YES 3) Doers pix krssl&rze Imo a 117.5, NO If WS4 a) is late ekinievtar kiro motel to park a die? YES nno fol As the dikevray del? DYESEPO Please mite any amoral comments bore toprivrail. Sfitt e ;e -5- 43 of 483 February 3, 2021 Resident/Property Owner CALIFORNFA A I ON. L CITY 3;j: •� .. rNCORPOKnlED Subject: TRAFFIC SAFETY COMMITTEE (TSC) ITEM NO. 2021-02 REQUEST TO INSTALL BLUE CURB DISABLED PERSONS PARKING SPACE WITH SIGNAGE IN FRONT OF THE RESIDENCE LOCATED AT 32 "D" AVENUE. Dear Sir/Madame: The City of National City would like to invite you to our next public Traffic Safety Committee Conference CaII scheduled for Wednesday, February 10, 2021, at 1:00 P.M. via Zoom. Please use the following information to call -in to the meeting during the scheduled time: Join Zoom Meeting from computer https://zoom.us/j/92648548029?pwd=TERNMXRmQTFjbHJhaThXNVUvUzV6QT09 Join Zoom Meeting by phone +1 669-900-9128 Meeting ID: 926 4854 8029 Passcode: 816340 If you have any questions, comments, and/or concerns, please contact the Engineering Department at 619-336-4380 and reference Traffic Safety Committee Item Number 2021-02. Sincerely, Roberto Yano, P.E. City Engineer/Director of Public Works RY:ch Enclosure: Location Map 2021-02 1234 National City Boulevard, National City, CA 91950-6530 (619) 336-4380 Fax (619) 336-4397 engineering©nationalcityca.gov 44 of 483 Location Map with Recommended Enhancements (TSC Item: 2021-02) L. PARKING ONLY disabled persons parking space 45 of 483 Location of proposed blue curb disabled persons parking space in front of 32 "D" Avenue (looking west) Location of proposed blue curb disabled persons parking space in front of 32 "D" Avenue (looking north) 46 of 483 DISABLED PERSONS PARKING POLICY The purpose of a disabled persons parking zone is to provide designated parking spaces at major points of assembly for the exclusive use of physically disabled persons whose vehicle displays a distinguishing license plate as authorized by the California Department of Motor Vehicles. The City Council may upon recommendation of the City Engineer, designate specially marked and posted on -street parking spaces for disabled persons pursuant to California Vehicle Code 21101, et seq. at the following facilities: 1. Government buildings serving the public such as administration buildings, public employment offices, public libraries, police stations, etc. 2. Hospitals and convalescent homes with more than 75-bed capacity. 3. Medical facilities and doctors' offices staffed by a maximum of five practitioners. Zones shall be located to serve a maximum number of facilities on one block. 4. Community service facilities such as senior citizens service centers, etc. 5. Accredited vocational training and educational facilities where no off- street parking is provided for disabled persons. 6. Employment offices for major enterprises employing more than 200 persons. 7. Public recreational facilities including municipal swimming pools, recreation halls, museums, etc. 8. Public theaters, auditoriums, meeting halls, arenas, stadiums with more than 300 seating capacity. 9. Other places of assembly such as schools and churches. 10. Commercial and/or office building(s) with an aggregate of more than 50,000 square feet of usable floor space. Zone shall be located to serve a maximum number of facilities on one block 11. Hotels catering to daily guests, maintaining a ground floor lobby and a switchboard that is operated 24 hours per day. 47 of 483 12. A hotel or apartment house catering to weekly or monthly guests and containing more than 30 separate living units. In addition, disabled persons parking spaces may be provided within all publicly owned, leased or controlled off-street parking facilities as specified in the General Requirements. General Requirements Each disabled persons parking space shall be indicated by blue paint and a sign (white on blue) showing the international symbol of accessibility (a profile view of a wheelchair with occupant). Where installed under the above criteria the total number of disabled persons curb parking spaces will be limited to 3% of the total number of on -street parking spaces available in the area and shall be distributed uniformly within the area. Disabled persons parking will not be installed at locations with a full-time parking prohibition. When a disabled persons parking zone is installed where a part-time parking prohibition is in effect, the disabled persons parking zone will have the same time restrictions as the part-time parking prohibition. The cost of installing disabled persons parking will be assumed by the City on public streets and public off-street parking facilities. In establishing on -street parking facilities for the disabled there shall be a. reasonable determination made that the need is of an on -going nature. The intent is to prevent the proliferation of special parking stalls that may be installed for a short-term purpose but later are seldom used. Unjustified installation of such parking stalls unnecessarily increases the City's maintenance and operations costs, reduce available on - street parking for the general public, and detract from the overall effectiveness of the disabled persons parking program. Special Hardship Cases It is not the intention of the City to provide personal reserved parking on the public right jof wiy, especially in residential areas. However, exceptions may be made, in special hardship cases, provided all of the following conditions exists: (1) Applicant (or guardian) must be in possession of valid license plates for "disabled persons" or "disabled veterans." (2) The proposed disabled parking space must be in front of the applicant's (or guardian's) place of residence. 48 of 483 (3) Subject residence must not have useable off-street parking available or off-street space available that may be converted into disabled parking. NOTE:It must be emphasized that such parking spaces do not constitute "personal reserved parking" and that any person with valid "disabled persons" Iicense plates may park in the above stalls. Jha:p 49 of 483 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City finding APR Construction, Inc. in default of the contract for the Civic Center ADA Accessibility Project, CIP No. 19-45 for materially violating the contract provisions by providing false information, consistent with Section 6.4.1 of the contract documents. (Engineering/Public Works) Please scroll down to view the backup material. 50 of 483 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: March 16, 2021 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City finding APR Construction, Inc. in default of the contract for the Civic Center ADA Accessibility Project, CIP No. 19-45 for materially violating the contract provisions by providing false information, consistent with Section 6.4.1 of the contract documents. PREPARED BY: Roberto Yano, Director of Public Works/City Engineer PHONE: 619-336-4383 EXPLANATION: See attached. DEPARTMENT: Eng» Bring/Public Works APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt Resolution finding APR Construction, Inc. in default of the contract for the Civic Center ADA Accessibility Project, CIP No. 19-45 for materially violating the contract provisions by providing false information, consistent with Section 6.4.1 of the contract documents. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Explanation 2. Resolution 2021-10 3. Resolution 51 of 4831 EXPLANATION On February 16, 2021 City Council adopted Resolution 2021-10 which found APR Construction, Inc. in default of the Contract for materially violating the contract provisions by providing false information, consistent with Section 6.4.1 of the contract documents. One public comment (see attached) in regards to this item was inadvertently missed at this meeting. The City Attorney has reviewed the letter received from the APR Construction, Inc. representatives and has determined that the contents of the letter present no new facts and that the fundamental issues of this case remain unchanged. Therefore, staff is returning the item to ensure all public comments submitted be heard, and request that City Council revote. Staff continues to recommends that the City Council of the City of National City find APR Construction, Inc. in default of the Contract for materially violating the contract provisions by providing false information, consistent with Section 6.4.1 of the contract documents Based on the action taken on February 16, 2021, staff has issued a written Notice of Termination for Default to the Contractor and its Surety to terminate the Contractor's right to perform under the Contract, and is coordinating with Surety to assume all rights, obligations, and liabilities of the Contractor under the Contract. If City Council adopts resolution, then pursuant to our Contract, within 15 Working Days of receipt of the second written notice of termination for default, the Surety shall submit to the City a written plan detailing the course of action it intends to take to remedy the default. The City will review the plan and notify the Surety if the plan is satisfactory. If the Surety fails to submit a satisfactory plan, or if the Surety fails to maintain progress according to the plan accepted by the City, the City may, upon 48 hours written notice, exclude the Surety from the premises, take possession of all material and equipment, and complete the Work in any way the City deems to be expedient. The cost of completing the Work by the City shall be charged against the Surety and may be deducted from any monies due, or which would become due, the Surety. If the amounts due under the Contract are insufficient for completion, the Surety shall pay to the City, within 30 days after the City submits an invoice, all costs in excess of the remaining Contract Price. Staff will work with the Surety to identify a contractor to diligently prosecute the work to completion, per the original intent of the Contract. Once a contractor is determined, staff will return to City Council to enter into a construction contract for the project. In an effort to prevent a similar scenario from occurring, a standalone email address has been created for the submittal of public comments. The email address is publiccomment@nationalcityca.gov. 52 of 483 RESOLUTION NO. 2021 10 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, (1) FINDING APR CONSTRUCTION, INC. 1N DEFAULT OF THE CONTRACT FOR THE CIVIC CENTER ADA ACCESSIBILITY PROJECT, CIP NO. 19- 45 FOR MATERIALLY VIOLATING THE CONTRACT PROVISIONS BY PROVIDING FALSE INFORMATION, CONSISTENT WITH SECTION 6.4.1 OF THE CONTRACT DOCUMENTS AND (2) AUTHORIZING CITY STAFF TO PROVIDE WRITTEN NOTICE OF TERMINATION FOR DEFAULT OF THE CONTRACTOR'S RIGHT TO PERFORM UNDER THE CONTRACT WHEREAS, on June 16, 2020, City Council adopted Resolution No. 2020-113 awarding a contract to APR Construction, Inc. ("Contractor") for the construction of the Civic Center ADA Improvements project, CIP No. 19-45; and WHEREAS, per National City Municipal Code Section 2.63, Ordinance No. 2018- 2450, Capital Improvement Projects (CIP) require the Contractor has to complete a Contractor Responsibility Questionnaire ("Questionnaire") to determine if the bidder is responsible and has the capability to perform the contract; and WHEREAS, the Contractor responded "negative" to all of the questions; and WHEREAS, after contract award, the City's Construction Manager, Innovative Construction Consulting Services ("Consultant"), conducted additional research on the Contractor and discovered that the Contractor had numerous legal issues that included contract terminations and other bonding disputes; and WHEREAS, City staff recommends the City Council find the Contractor in default of the contract for materially violating the contract provisions by providing false information, consistent with Section 6.4.1 of the contract documents; and WHEREAS, City staff further recommends the City Council authorize City Staff to provide written notice of termination for default of the Contractor's right to perform under the contract. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1: That the City Council hereby finds APR. Construction, Inc. in default of the contract for the Civic Center ADA Accessibility Project, CIP No.19-45, for materially violating the contract provisions by providing false information, consistent with Section 6.4.1 of the contract documents. Resolution No. 2021 — 10 Page Two Section 2: That the City Council hereby authorizes City staff to provide written notice of termination for default of the Contractor's right to perform under the contract. Section 3: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. PASSED and ADOPTED this 16th day of February 2021. Alejandra Sotelo-Solis, Mayor ATTEST: Luz Molin City Clerk APPROVED AS TO FORM: Charles E. Bell Jr., C. Attorney 54 of 483 Passed and adopted by the' Council of the City of National City, California, on February 16, 2021, by the following vote, to -wit: Ayes: Sotelo-Solis, Rodriguez, Bush, Morrison, Rios. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: ALEJANORA SOTELO-SOLIS Mayor of the City of National City, California BY: lanai City, California Shelley Chapel, DepulbgCity Clerk I HEREBY CERTIFY that the above and foregoing is a.full, true and correct copy of RESOLUTION NO. 2021-10 of the City of National City, California, passed and adopted by the Council of said City on February 16, 2021. City Clerk of tie City of National City, California 55 of 483 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City ratifying the Agreement between the City of National City and Meyers Nave for legal services in consultation with the City Attorney on matters related to the implementation of a commercial cannabis structure and program for the total not to exceed amount of $25,000.00 and approving the City Attorney's execution of same. (City Attorney) Please scroll down to view the backup material. 56 of 483 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: 3/16/2021 AGENDA ITEM NO. ITEM TITLE: the City of National City ratifying legal services in consultation cannabis structure and the City Attorney's execution Jr., City Attorney a new retainer agreement Meyers Nave, to provide legal the implementation of a commercial advice and counsel to the City with City staff for an amount the Agreement between the City of with the City Attorney on matters related program for the total not to exceed of same. DEPARTMENT: Charles E. Bell, Jr., City Attorney APPROVED BY: . /f Resolution of the City Council of National City and Meyers Nave for to the implementation of a commercial amount of $25,000.00 and approving PREPARED BY: Charles E. Bell, PHONE: 4222 EXPLANATION: _ ilferr / with Meyers Nave. See the attached services in consultation with the City cannabis structure and program. Council, the Economic Development not to exceed $25,000.00. The City Attorney Office negotiated Agreement for legal services with Attorney on matters related to Meyers Nave will also provide Department and communications FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. ENVIRONMENTAL REVIEW: FINAL ADOPTION: APPROVED: MIS N/A ORDINANCE: INTRODUCTION: STAFF RECOMMENDATION: City Attorney enter into the of a commercial cannabis agreement with Meyers Nave for legal structure and program. Adopt Resolution authorizing the services for the implementation BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: • Agreement • Resolution 57 of 483 AGREEMENT FOR LEGAL SERVICES BY AND BETWEEN THE CITY OF NATIONAL CITY AND MEYERS NAVE THIS AGREEMENT FOR LEGAL SERVICES (the "Agreement") is made as of the day of March, 2021 between THE CITY OF NATIONAL CITY, a municipal corporation, (the "CITY") and MEYERS NAVE , (the "FIRM"). This Agreement sets forth the parties' mutual understanding concerning legal services to be provided by the FIRM and the fee arrangement for said services. Article 1. Retainer. The CITY hereby retains the FIRM to assist in representing the CITY in connection with litigation and government claims issues, subject to this Agreement. Article 2. Effective Date and Term. This Agreement shall be effective on [insert date above] and continue until written notice of cancellation. This Agreement may be terminated at any time by either party with sixty (60) days' written notice to the other. Notice of termination by the FIRM shall be given to the City Attorney. Article 3. Scope of Services. The CITY shall have the right in its sole discretion to determine the particular services to be performed by the FIRM under this Agreement. These services may include the following: consultation with the City Attorney on matters related to the implementation of a commercial cannabis structure and program in the CITY as per the Engagement Letter attached as Exhibit A, advice and counsel to the City Council, and communications with City staff ("LEGAL SERVICES"). It is expected that the FIRM will work with the City Attorney and CITY staff. Article 4. Compensation. Compensation paid under this Agreement shall be as set forth in the Engagement Letter attached as Exhibit A. A. The FIRM shall not use more than one attorney for the same specific task without the CITY'S approval. The FIRM may use the minimum number of attorneys for this engagement consistent with good professional practice after consulting with and obtaining approval by the CITY. B. The FIRM agrees to document a plan and budget consistent with the scope of services described above in Article 3 to be agreed to by the City Attorney and the FIRM. The CITY shall not be obligated to pay the FIRM amounts not discussed, budgeted, and agreed to before being incurred by the FIRM. C. The CITY has appropriated or otherwise duly authorized the payment of an amount not to exceed $25,000.00 for LEGAL SERVICES and out-of-pocket disbursements pursuant to this Agreement. In no event shall the total fees plus out-of-pocket disbursements exceed this amount without written authorization of the CITY. 2021 Agreement Legal Services Page 1 of 9 City of National City and Meyers Nave 58 of 483 D. The FIRM shall keep the CITY advised monthly as to the level of attorney hours and client services performed under Article 1. The FIRM will not charge the CITY for travel time; however, the FIRM may charge for work performed for the CITY during any travel time. E. The CITY further agrees to reimburse the FIRM, in accordance with the procedures set forth in this Article, for telephone, fax, mail, messengers, federal express deliveries, document reproduction, client -requested clerical overtime, lodging, and similar out-of-pocket expenses charged by the FIRM as a standard practice to its clients generally, with the exception of travel and meals. In any billing for disbursements, the FIRM shall provide the CITY with a statement breaking down the amounts by category of expense. The following items shall not be reimbursed, unless the CITY has specifically agreed otherwise: (1) Word Processing, clerical or secretarial charges, whether expressed as a dollar disbursement or time charge. (2) Storage of open or closed files, rent, electricity, local telephone, postage, receipts or transmission of telecopier documents, or any other items traditionally associated with overhead. (3) Photocopy charges in excess of $.15 (fifteen cents) per page. (4) Auto mileage rates in excess of the rate approved by the Internal Revenue Service for income tax purposes. (5) Secretarial overtime. Where case requirements demand overtime, the CITY will consider reimbursement on a case -by -case basis. The CITY will not reimburse overtime incurred for the convenience of the FIRM'S failure to meet deadlines known in advance. (6) Equipment, books, periodicals, research materials, Westlaw/Lexis or like items. (7) Express charges, overnight mail charges, messenger services or the like, without the CITY' S prior consent. The CITY expects these expenses to be incurred in emergency situations only. Where case necessity requires the use of these services, the CITY will consider reimbursement on a case -by -case basis. (8) Travel and meals. (9) Late payment charge or interest. Due to the nature of the CITY'S payment process, the CITY will not pay any late charges or interest charges to bills. Every effort will be made to pay bills promptly. F. Bills from the FIRM should be submitted to Charles E. Bell, Jr., City Attorney, 1243 National City Boulevard, National City, CA 91950-4301. The individual time and disbursement records customarily maintained by the FIRM for billing evaluation and review purposes shall be made available to the CITY in support of bills rendered by the FIRM. G.The FIRM agrees to forward to the CITY a statement of account for each one - month period of services under this Agreement, and the CITY agrees to compensate the FIRM on this basis. The FIRM will consult monthly with the CITY as to the number of attorney hours and client disbursements which have been incurred to date under this Agreement, and as to future expected levels of hours and disbursements. 2021 Agreement Legal Services Page 2 of 9 City of National City and Meyers Nave 59 of 483 H. Billing Format. Each billing entry must be complete, discrete and appropriate. (1) Complete. (a) Each entry must name the person or persons involved. For instance, telephone calls must include the names of all participants. (b) The date the work was performed must be included. (c) The hours should be billed in .10 hour increments. (d) The specific task performed should be described, and the related work product should be reference ("telephone call re: trial brief," "interview in preparation for deposition"). (e) paralegal, etc.) should be included. The biller's professional capacity (partner, associate, (2) Discrete: Each task must be set out as a discrete billing entry; neither narrative nor block billing is acceptable. (3) Appropriate. (a) The CITY does not pay for clerical support, administrative costs, overhead costs, outside expenses or excessive expenses. For example, the CITY will not pay for secretarial time, word processing time, air conditioning, rental of equipment, including computers, meals served at meetings, postage, online research, or the overhead costs of sending or receiving faxes. Neither will the CITY pay for outside expenses such as messenger delivery fees, outside photocopying, videotaping of depositions, investigative services, outside computer litigation support services, or overnight mail. (b) Due to the nature of the CITY' S payment process, the CITY will not pay any late charges. Every effort will be made to pay bills promptly. I. Staffing. Every legal matter should have a primarily responsible attorney and a paralegal assigned. Ultimately, staffing is a CITY decision, and the CITY'S representative may review staffing to insure that it is optimal to achieve the goals of the engagement at the least cost. (1) Paralegals are to be used to the maximum extent possible to enhance efficiency and cost-effectiveness. All tasks typically considered associate work should be considered for assignment to a paralegal. Written authorization from the CITY must be had before associate hours billed exceed paralegal hours billed. (2) Once an attorney is given primary responsibility for an engagement, that person should continue on the legal matter until the matter is concluded or the attorney leaves the FIRM. The CITY will not pay the costs of bringing a new attorney up to speed. (3) If more than one attorney is going to perform the same task, prior approval from the CITY must be had. This includes document review. 2021 Agreement Legal Services Page 3 of 9 City of National City and Meyers Nave 60 of 483 Article 5. Independent Contractor. The FIRM shall perform services as an independent contractor. It is understood that this contract is for unique professional services. Accordingly, the duties specified in this Agreement may not be assigned or delegated by the FIRM without prior written consent of the CITY. Retention of the FIRM is based on the particular professional expertise of the individuals rendering the services required in the Scope of Services. Article 6. Confidentiality of Work. All work performed by the FIRM including but not limited to all drafts, data, correspondence, proposals, reports, and estimates compiled or composed by the FIRM pursuant to this Agreement is for the sole use of the CITY. All such work product shall be confidential and not released to any third party without the prior written consent of the CITY. Article 7. Compliance with Controlling Law. The FIRM shall comply with all applicable laws, ordinances, regulations, and policies of the federal, state, and local governments as they pertain to this Agreement. In addition, the FIRM shall comply immediately with any and all directives issued by the CITY or its authorized representatives under authority of any laws statutes, ordinances, rules, or regulations. The laws of the State of California shall govern and control the terms and conditions of this Agreement. Article 8. Acceptability of Work. The C1TY shall decide any and all questions which may arise as to the quality or acceptability of the services performed and the manner of performance, the acceptable completion of this Agreement and the amount of compensation due. If the FIRM and the CITY cannot agree to the quality or acceptability of the work, the manner of performance, or the compensation payable to the FIRM in this Agreement, the CITY or the FIRM shall give to the other written notice. Within ten (10) business days, the FIRM and the CITY shall each prepare a report which supports their position and file the same with the other party. The CITY shall, with reasonable diligence, determine the quality or acceptability of the work, the manner of performance or the compensation payable to the FIRM. Article 9. Indemnification. The FIRM agrees to indemnify, defend, and hold the CITY and its agents, officers, employees, and volunteers harmless from and against all claims asserted or liability established for damages or injuries to any person or property, including injury to the FIRM' S employees, agents, or officers, which arise from or are connected with or caused or claimed to be caused by the acts or omissions of the FIRM and its agents, officers, or employees in performing the work or other obligations under this Agreement, and all expenses of investigating and defending against same; provided, however, that this indemnification and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the CITY, its agents, officers, employees, or volunteers. Article 10. Insurance. The FIRM, at its sole cost and expense, shall purchase and maintain throughout the term of this Agreement, the following insurance policies: A. Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per claim. 2021 Agreement Legal Services Page 4 of 9 City of National City and Meyers Nave 61 of 483 B. Automobile Insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include owned, non -owned, and hired vehicles. The policy shall name the CITY and its officers, agents, employees, and volunteers as additional insureds, and a separate additional insured endorsement shall be provided. C. Commercial General Liability Insurance, with minimum limits of either $2,000,000 per occurrence and $4,000,000 aggregate, or $1,000,000 per occurrence and $2,000,000 aggregate with a $2,000,000 umbrella policy, covering all bodily injury and property damage arising out of its operations, work, or performance under this Agreement. The policy shall name the CITY and its officers, agents, employees, and volunteers as additional insureds, and a separate additional insured endorsement shall be provided. The general aggregate limit must apply solely to the "location". The "location" should be noted with specificity on an endorsement that shall be incorporated into the policy. D. Workers' Compensation Insurance in an amount sufficient to meet statutory requirements covering all of FIRM' S employees and employers' liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the CITY. Said endorsement shall be provided prior to commencement of work under this Agreement. E. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, officials, employees, and volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CITY's Risk Manager, at the address listed in subsection G below, of cancellation or material change. F. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the FIRM shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date must be on or before the date of this Agreement. shall be: G. The Certificate Holder for all policies of insurance required by this Section City of National City c/o Risk Manager 1243 National City Boulevard National City, CA 91950-4397 H. Insurance shall be written with only insurers authorized to conduct business in California that hold a current policy holder's alphabetic and financial size category rating of not less than A:VII according to the current Best's Key Rating Guide, or a company of equal financial stability that is approved by the CITY'S Risk Manager. In the event coverage is provided by non - admitted "surplus lines" carriers, they must be included on the most recent List of Approved Surplus Line Insurers ("LASLI") and otherwise meet rating requirements. 202I Agreement Legal Services Page 5 of 9 City of National City and Meyers Nave 62 of 483 I. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY'S Risk Manager. If the FIRM does not keep all insurance policies required by this Article 10 in full force and effect at all times during the term of this Agreement, the CITY may treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. J. All deductibles and self -insured retentions in excess of $10,000 must be disclosed to and approved by the CITY. CITY reserves the right to modify the insurance requirements of this Article 10, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. K. If the FIRM maintains broader coverage or higher limits (or both) than the minimum limits shown above, the CITY shall be entitled to the broader coverage or higher limits (or both) maintained by the FIRM. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY. Article 11. Drug Free Work Place. The FIRM agrees to comply with the CITY'S Drug -Free Workplace requirements. Every person awarded a contract by the CITY for the provision of services shall certify to the CITY that it will provide a drug -free workplace. Any subcontract entered into by the FIRM pursuant to this Agreement shall contain this provision. Article 12. Non -Discrimination Provisions. The FIRM shall not discriminate against any subcontractor, vendor, employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The FIRM will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The FIRM agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause. Article 13. Notification of Change in Form. The FIRM has the right to effect changes in form including but not limited to: the change in form from a partnership to a professional law corporation; the change in form of any partner or partners from an individual or individuals to a professional law corporation; the change in form of any corporate partner or partners to any individual partners. The CITY shall be promptly notified in writing of any change in form. Article 14. Notices. In all cases where written notice is to be given under this Agreement, service shall be deemed sufficient if said notice is deposited in the United States mail, postage paid. When so given, such notice shall be effective from the date of mailing of the notice. Unless otherwise provided by notice in writing from the respective parties, notice to the Agency shall be addressed to: 2021 Agreement Legal Services Page 6 of 9 City of National City and Meyers Nave 63 of 483 City Attorney City of National City 1243 National City Boulevard National City, CA 91950-4397 cc: Executive Assistant to the City Attorney City of National City 1243 National City Boulevard National City, CA 91950-4397 and to: cbell(a nationalcityca.gov leahm(�}a,nationalcityca. gov Notice to the FIRM shall be addressed to: Eric Casher Meyers Nave 1999 Harrison Street, 9th Floor Oakland, CA 94612 cc: Melanie Meneses, Assistant to Eric Casher Meyers Nave 1999 Harrison Street, 9th Floor Oakland, CA 94612 and to: ecasher@meyersnave.com mmeneses(a,meyersnave.com Nothing contained in this Agreement shall preclude or render inoperative service or such notice in the manner provided by law. Article 15. Administrative Provisions. A. Time of Essence. Time is of the essence for each provision of this Agreement. B. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. 2021 Agreement Legal Services Page 7 of 9 City of National City and Meyers Nave 64 of 483 C. Headings. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. D. California Law. This Agreement shall be construed and interpreted in accordance with the laws of the State of California. The venue for any legal action arising under this Agreement shall be in either state or federal court in the County of San Diego, State of California. E. Integrated Agreement. This Agreement including attachments and exhibits contains all of the agreements of the parties and all prior negotiations and agreements are merged in this Agreement. This Agreement cannot be amended or modified except by written agreement, and mutually agreed upon by the CITY and the FIRM. F. Severability. The unenforceability, invalidity, or illegality of any provision of this Agreement shall not render the other provisions unenforceable, invalid, or illegal. G. Waiver. The failure of the CITY to enforce a particular condition or provision of this Agreement shall not constitute a waiver of that condition or provision or its enforceability. H. Conflict of Interest. During the term of this Agreement, the FIRM shall not perform services of any kind for any person or entity whose interests conflict in any way with those of the CITY. This prohibition shall not preclude the CITY from expressly agreeing to a waiver of a potential conflict of interest under certain circumstances. I. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. J. Exhibits and Schedules. The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference for all purposes. To the extent any exhibits, schedules, or provisions thereof conflict or are inconsistent with the terms and conditions contained in this Agreement, the terms and conditions of this Agreement shall control. K. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this Agreement, and (iii) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. 2021 Agreement Legal Services Page 8 of 9 City of National City and Meyers Nave 65 of 483 CITY OF NATIONAL CITY By: Charles E. Bell, Jr. City Attorney 2021 Agreement Legal Services MEYERS NAVE (Corporation — signatures of hvo corporate officers) By: Title: Principal , Esq. By: , Esq. Title: Page 9 of 9 City of National City and Meyers Nave 66 of 483 EXHIBIT A 1999 Harrison Street, 9th Floor Oakland, California 94612 tel (510) 808-2000 fax (510) 444-1108 www.meyersnave.com m eye rs nave February 17, 2021 Via Electronic Mail PERSONAL & CONFIDENTIAL Charles E. Bell Jr. City Attorney National City 1243 National City Blvd. National City, CA 91950-4397 E-Mail: cebell@nationalcityca.gov Re: Engagement of Legal Services Dear Mr. Bell: Eric S. Casher Attorney at Law ecasher@meyersnave.com Thank you for retaining Meyers Nave ("Meyers Nave") to perform legal services in connection with National City ("Client") for which you are the City Attorney. We appreciate the opportunity to serve as your lawyers and look forward to working with you. This letter sets forth our agreement concerning the legal services we will provide and our fee arrangements for those services. Please read this entire agreement before signing and returning it to us. 1. Scope of Engagement. We will provide the legal services reasonably required to represent and advise you in connection with the drafting of related documents including but not limited to an Operating or Development Agreement, and assist with the implementation of a commercial cannabis structure and program in the City. Our work is limited to such services. We will also provide legal services for additional matters that you request of us, provided we agree to perform that additional work. A letter confirming such additional work shall bring such work within the scope of this agreement. 2. Fees and Personnel. As compensation for our services, our fees will be based on our current standard billing rate for the personnel performing services under this agreement at the time such services are rendered. Our standard billing rates for attorneys and paralegals are attached as Attachment 1. I will be the principal in charge of representing your interests. If other attorneys and/or paralegals are assigned to work on your matter, the then current hourly rates of those 4 PROf ESSIONAL LAW CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO 67 of 483 Charles E. Bell Jr. February 17, 2021 Page 2 individuals will be utilized. This agreement retains the legal services of our law firm and not of a particular attorney. Hourly rates are subject to reasonable change, usually at the beginning of each year. 3. Retainer. As discussed, the Firm will not require a retainer to commence services related to this matter. However, the Firm reserves the right to require a retainer in the future if it determines that circumstances warrant. 4. Disbursements and Expenses. In addition to hourly fees, we may incur out-of- pocket expenses related to your representation. Our Statement of Fee and Billing Information, which sets forth the details of our disbursement and expense policy, is attached as Attachment 2. 5. Billing and Payment Responsibilities. We will send monthly statements which are due within 30 days of receipt. If you have any questions about an invoice, please promptly telephone or write me so that we may discuss these matters. Our Statement of Fee and Billing Information sets forth the details of our fee and billing policy. 6. Termination of Services. You may terminate our services at any time by written notice. After receiving such notice, we will cease providing services. We will cooperate with you in the orderly transfer of all related files and records to your new counsel. We may terminate our services at any time with your consent or for good cause. Good cause exists if (a) any statement is not paid within 60 days of its date; (b) you fail to meet any other obligation under this agreement and continue in that failure for 15 days after we send written notice to you; (c) you have misrepresented or failed to disclose material facts to us, refused to cooperate with us, refused to follow our advice on a material matter, or otherwise made our representation unreasonably difficult; or (d) any other circumstance exists in which ethical rules of the legal profession mandate or permit termination, including situations where a conflict of interest arises. If we terminate our services, you agree to execute a substitution of attorneys promptly and otherwise cooperate in effecting that termination. Termination of our services, whether by you or by us, will not relieve the obligation to pay for services rendered and costs incurred before our services formally ceased. 7. Insurance. During the term of this engagement, this law firm shall take out and maintain general liability and property damage insurance in amounts not less than $1,000,000; professional errors and omissions insurance, in amounts not less than $2,000,000 per occurrence; and $4,000,000 aggregate, which insurance may not be canceled or reduced in required limits of liability unless at least ten days advance written notice be given to you. 8. No Guarantee of Outcome. Any comments made by us about the potential outcome of this matter are expressions of opinion only and are not guarantees or promises about any outcome or results. A PROFESSIONAL LAW CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO 68 of 483 Charles E. Bell Jr. February 17, 2021 Page 3 9. Dispute Resolution. In the event you become dissatisfied with any aspect of our relationship, we encourage you to bring such concerns to our attention immediately. If we are unable to resolve any dispute, either arising out of or in connection with this Agreement or relating to the services performed by our firm or any of its attorneys, to our mutual satisfaction, our firm will first comply with any mandatory dispute resolution procedures that may apply to any such dispute. If we are unable to resolve any dispute, and after mandatory dispute resolution procedures have been waived or exhausted, the parties shall submit such dispute to final and binding arbitration in San Diego County, California before the American Arbitration Association, pursuant to its then prevailing rules, unless the parties agree in writing to a different arbitration method or forum. By signing this agreement, you acknowledge and agree that you have read and understand this arbitration provision. You understand that by agreeing to arbitration we each give up the right to present our claims or defenses for trial by a judge or jury, and we also give up the right to an appeal. The initial resort to the courts by either party shall not be considered a waiver of that party's right to compel binding arbitration under this provision. This agreement shall be governed by and construed in accordance with the laws of the State of California without regard to principles of conflicts of laws. 10. Document Retention. In the course of the Firm's representation of National City, you may provide us with and we may obtain documents that are relevant to the representation. Some of those documents may be important to you and so that there is no confusion we find that it is useful at the inception of the representation for us to communicate our Document Retention Policy. Meyers Nave is committed to using less paper and eliminating unnecessary copies of documents. Documents of Record can be either hard copies or digital, regardless of the form they took originally when created or received by the Firm. Whenever it is proper and practicable, the Firm prefers Documents of Record (official version) to be in a digital format. Further, if record is stored electronically, then paper copies may be deemed duplicative and may be purged. This helps us manage information, helps the environment and helps us control costs. The materials pertaining to this matter belong to you and you may access them or have duplicates provided to you at any time during your representation with the exception of certain Meyers Nave Firm and accounting information. At the conclusion of this matter, no further representation will be provided and we recommend that you make arrangements to retrieve all original documents. It is the Firm's general policy that we maintain records for a period of seven (7) years after conclusion of the matter, although due to certain practical considerations that is not always possible. Additionally, while we take steps to ensure that all records are held in strict confidence and maintained in a secure location, we cannot guarantee that something beyond our control will not occur resulting in damage to client records. A PROFESSIONAL LAW CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO 69 of 483 Charles E. Bell Jr. February 17, 2021 Page 4 Thus, if in the course of our representation you provide us with original documents that you consider important or desire to keep, we recommend that, first, you inform us in writing that the documents are important. And second, we ask that you take immediate possession of such documents upon the conclusion of our representation. If we do not hear from you, we will generally retain only the documents and materials pertaining to this matter which we designate as vital for a period of seven (7) years. After which such documents will be destroyed unless, before that time, you notify us in writing that you wish to take possession of them. 11. Entire Agreement; Full Understanding; Modifications in Writing. This letter contains our entire agreement about our representation. Any modifications or additions to this letter agreement must be made in writing. 12. Joint Representation. Our firm maintains of counsel agreements with certain legal specialists. Because these individuals are deemed independent contractors under the applicable provisions of the tax laws and not employees of our firm, it is necessary that you consent to dual representation by our firm and the specialist in the event the matter which you have engaged us to handle requires the use of that specialist. This arrangement has no effect whatsoever on the cost of your legal services, rather it is an ethical requirement that we disclose this fact and that you consent. You are consenting by signing this letter. 13. Conflicts. Our firm represents many public agencies in California, Nevada and Arizona. Since 1986, we have represented over seven hundred public clients, including numerous cities, redevelopment agencies, special districts, counties and other public entities, and we are accepting new engagements all the time. It is virtually inevitable that we will work on projects from other clients having different governmental or political objectives, beliefs or views from National City. In view of the fact that National City is a City, this letter confirms that the services which we are rendering to you are limited in scope and for the benefit of National City only. Meyers Nave performs a variety of professional services for its clients and it is possible that we will represent public agency clients which are adverse to you on other matters. To avoid potential problems, you agree that you expressly waive any actual or potential conflicts that might arise from such representation, that you will not attempt to disqualify Meyers Nave on such matters, and that our firm is free to represent its clients on such matters. By signing this letter and returning it to us, you acknowledge that we have discussed these matters and you confirm that National City does not object to our representation of clients on matters where their legal, governmental or political objectives and/or positions may be different from or adverse to those of National City, and that National City waives any conflict of interests with respect to our representation of such clients with differing legal, governmental or political interests. You further confirm that National City will not assert any conflict of interest concerning such representation or attempt to disqualify this firm from representing such clients notwithstanding such adversity. While you would certainly be free A PROFESSIONAL LAW CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO 70 of 483 Charles E. Bell Jr. February 17, 2021 Page 5 to terminate our relationship, you agree that this firm nonetheless would be free to represent such clients even on those matters which you consider adverse, and that you waive any conflict of interest in connection therewith. Needless to say, these acknowledgments do not permit our firm to represent another client in opposing the specific project for which you engage us without your specific written consent. You may wish, and we encourage you, to consult legal counsel regarding the effect of this conflict waiver. We would request that you review this letter carefully and, if it is consistent with your understanding of our respective responsibilities, please so indicate by returning a signed copy of this letter to me at your earliest convenience. Enclosed is an additional copy of this letter which you should retain for your records. Again, we thank you for allowing us the opportunity to serve as your lawyers. Sincerely, Eric S. Casher Principal ESC:MCM Enclosures c: Conflicts Department Billing Department These terms are accepted and agreed to as of the date of this letter. National City By: Charles E. Bell Jr. City Attorney of National City 3691383.1 A PROFESSIONAL LAW CORPORATION OAKLAND LOS ANGELES SACRAMENTO SANTA ROSA SAN DIEGO 71 of 483 meyers nave ATTACHMENT 1 MEYERS, NAVE, RIBACK, SILVER & WILSON RATE SHEET Principal $395 Of Counsel $340 Associate $300 72 of 483 meyers nave ATTACHMENT 2 MEYERS, NAVE, RIBACK, SILVER & WILSON STATEMENT OF FEE AND BILLING INFORMATION The following is a general description of our fee and billing policies. These general policies may be modified by the specific engagement letter or agreement to which this summary is attached. Professional Fees. Our fees for professional services are based on the fair value of the services rendered. To help us determine the value of our services, our attorneys and paralegals maintain time records for each client and matter. Our attorneys and paralegals are assigned hourly rates which are based on years of experience, specialization, training and level of professional attainment. We adjust our rates periodically (usually at the beginning of each year) to take into account inflation and the increased experience of our professional personnel. To keep professional fees at a minimum, legal work that does not require more experienced attorneys will be performed, where feasible, by attorneys with lower billing rates. Of course, the quality of the work is paramount, and we do not sacrifice quality to economy. Before undertaking a particular assignment, we will, if requested, provide you with a fee estimate to the extent possible. Estimates are not possible for some matters, however, and cannot be relied on in many others because the scope of our work will not be clear at the outset. When a fee estimate is given, it is only an estimate; it is not a maximum or minimum fee quotation. The actual fee may be more or less than the quoted estimate. Retainer. Our normal practice is to require a retainer to cover a portion of the anticipated attorneys' fees and costs. Any retainer will be placed in the firm's trust account. At the conclusion of our services, we will return to our client any unapplied retainer, after deducting payment for charges billed or to -be -billed for services and any remaining out-of-pocket expenses. Billing And Payment Procedures. Unless other arrangements are made at the time of the engagement, invoices will be sent monthly. Invoices for outside services exceeding $100 may be billed separately. Occasionally, however, we may defer billing for a given month or months if the accrued fees and costs do not warrant current billing or if other circumstances would make it appropriate to defer billing. Our invoices contain a brief narrative description of the work performed; if requested, the initials of the attorney who performed the work will appear on the statement. The invoice will include a line item reflecting in-house administrative costs. The firm's in-house administrative costs include, but are not limited to, duplicating, facsimile charges, telephone charges, E-mail, postage, mileage and other administrative expenses. We have determined that the most effective method of accounting for these administrative costs is to charge a flat 5% of the professional fees incurred. 73 of 483 meyers nave The firm will be reimbursed for all outside services incurred in the course of providing legal services to our client(s). Outside services will include, but are not limited to, all third -party expenses, delivery charges, travel expenses, outside research services, filing fees, expert witness and expert consultant fees. To defray the firm's costs for administering these services, there will be an additional cost advance charge of 2% for all outside services of $100 or more. If you have any questions regarding an invoice, the Finance Director or Executive Director is available to answer your questions. For any unresolved matters, the Bar Association has an arbitration mechanism that can be used to resolve such matters. Late Payments. Statements for services are payable upon presentation and, in all events, within thirty (30) days after receipt. Occasionally a client has difficulty in making timely payments. To avoid burdening those clients who pay their statements promptly with the added costs we incur as a result of late payments, a late charge will be assessed on statements not paid within thirty (30) days. The maximum monthly late payment charge will be 1.5% per month. In the unlikely event we are required to institute legal proceedings to collect fees and costs, the prevailing party will be entitled to reasonable attorneys' fees and other costs of collection. 74 of 483 The following page(s) contain the backup material for Agenda Item: Warrant Register #32 for the period of 2/03/21 through 2/09/21 in the amount of $2,455,294.45. (Finance) Please scroll down to view the backup material. 75 of 483 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: March 16, 2021 AGENDA ITEM NO.: ITEM TITLE: Warrant Register #32 for the period of 2/03/21 through 2/09/21 in the amount of $2,455,294.45. (Finance) PREPARED BY: Karla Apalategui, Senior Accounting Assistant DEPARTMENT: Finance PHONE: 619-336-4572 EXPLANATION: APPROVED BY: . --� Per Government Section Code 37208, below are the payments issued for period 2/03/21 - 2/09/21. Consistent with Department of Finance's practice, listed below are all payments above $50,000. Vendor Check/Wire Amount Explanation CALPERS 351229 56,042.16 2021 Replacement Charges for Benefits Health Net Inc 351259 85,518.25 Grp# R1192A — January 2021 Health Net Inc 351260 82,025.94 Grp# R1192A — February 2021 Kaiser Foundation 351265 185,651.28 Grp 104220-0002 — Dec 2020 Portillo Concrete 351280 59,820.25 CIP 18-10 Euclid Bike & Ped Enhancemnt Project Professionals 351282 132,677.06 CIP 19-43 P1 Sewer Upsizing — Eng/PW Tyler Technologies 351312 62,436.13 Eden Annual Support 1/1/21 — 12/31/21 Whillock Contracting 351318 309,294.69 CIP 18-07 Paradise Creek Park Site FINANCIAL STATEMENT: ACCOUNT NO. Warrant total $2,455,294.45. APPROVED: APPROVED: ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION FINAL ADOPTION FINANCE MIS STAFF RECOMMENDATION: Ratify warrants totaling $2,455,294.45. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: Warrant Register # 32 76 of 483 1r/ CALIFORNIA PAYEE A&B SAW & LAWNMOWER ADMINSURE INC AETNA BEHAVIORAL HEALTH ALTA LANGUAGE SERVICES INC AT&T AT&T AZTECA SYSTEMS LLC BLUE PACIFIC ENGINEERING BMI BUREAU VERITAS N AMERICA INC CAPF CALIFORNIA LAW ENFORCEMENT CALPERS - FINANCIAL REPORTING CALPERS - FINANCIAL REPORTING CANON SOLUTIONS AMERICA INC. CARLOMAGNO, A CARTEGRAPH SYSTEMS INC CHEN RYAN ASSOCIATES INC CITY OF LEMON GROVE COX COMMUNICATIONS DALEY & HEFT LLP DAY WIRELESS SYSTEMS DELL MARKETING L P DELTA DENTAL DELTA DENTAL DELTA DENTAL DELTA DENTAL DELTA DENTAL DELTA DENTAL INSURANCE CO DELTA DENTAL INSURANCE CO DELTA DENTAL INSURANCE CO EPLASTICS ESGIL CORPORATION EXPERIAN FACTORY MOTOR PARTS HAMEL, K HEALTH NET HEALTH NET HEALTH NET HEALTH NET HEALTH NET HEALTH NET HEALTH NET INC HEALTH NET INC HEALTH NET INC HEALTH NET INC HOME DEPOT CREDIT SERVICES INNOVATIVE CONSTRUCTION NATIONAL CITy coRPOR VJ WARRANT REGISTER # 32 2/9/2021 DESCRIPTION HUSQUAVERNA ANTIVIBRATION SPRING / FIRE AGREEMENT TO PROVIDE MONTHLY SERVICES EMPLOYEE ASSISTANCE PROGRAM - FEBRUARY EMPLOYEE BILINGUAL TESTING AT&T SBC ANNUAL PHONE SERVICE FOR FY21 AT&T SBC ANNUAL PHONE SERVICE FOR FY21 SEECLICKFIX INTEGRATION MEETING CIP 18-14 SWEETWATER BIKEWAY CONNECTION MUSIC PERFORMANCE AGREEMENT BMI INSPECTION SERVICES - BUREAU VERITAS JANUARY 2021 - FIRE LTD JANUARY 2021 - PD LTD 2021 REPLACEMENT CHGS TO REPLACE BENEFIT 2021 REPLACEMENT CHGS/REPLACEMENT BENEFIT PLOTWAVE 345 PRINTER MAINTENANCE TRAINING ADV POST SUB FTO UPDATE CARTEGRAPH ANNUAL RENEWAL / MIS 24TH ST TODO - ENG/PW LIABILITY CLAIM COST COX DATA VIDEO SERVICES FOR FY21 LIABILITY CLAIM COST COMPANY MAINTENANCE CONTRACT /FIRE DELL LATITUDE 7200 2-IN-1 TABLET JAN 2021 GRP 05-0908600000 DECEMBER 2020 05-0908600000 FEB 2021 GRP 05-0908600000 JAN 2021 GRP 05-0908601002 DECEMBER 2020 GRP 05-0908601002 DEC 2020 GRP 05-7029600000 JAN 2021 GRP 05-7029600000 FEB 2021 GRP 05-7029600000 CLEAR EXTRUDED PLEXIGLASS ACRYLIC SHEET PERMIT TECH SERVICES - ESGIL CREDIT CHECKS WINDOW REG ADDY FOR EQUIPTMENT EDUCATION REIMBURSEMENT GRP #R1192Q - JANUARY 2021 GRP #R1192Q - FEBRUARY 2021 GRP N7177A - JAN 2021 GRP N7177A - FEB 2021 GRP #N7176F - JANUARY 2021 GRP #N7176F - FEBRUARY 2021 GRP #R1192A - JANUARY 2021 GRP #R1192A - FEBRUARY 2021 GRP #LB439A - FEBRUARY 2021 GRP #LB439A - JANUARY 2021 WEATHERGUARD TRUCK BOX CIP 18-14 SWEETWATER BIKE PATH - ENG/PW CHK NO 351217 351218 351219 351220 351221 351222 351223 351224 351225 351226 351227 351228 351229 351230 351231 351232 351233 351234 351235 351236 351237 351238 351239 351240 351241 351242 351243 351244 351245 351246 351247 351248 351249 351250 351251 351252 351253 351254 351255 351256 351257 351258 351259 351260 351261 351262 351263 351264 DATE 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 AMOUNT 27.96 7,872.50 973.76 66.00 1,934.67 71.83 200.00 2,092.38 651.60 24,500.00 1,003.00 2,058.00 56,042.16 8,026.36 82.38 384.00 39,000.00 25,669.50 1,030.13 711.78 1,720.00 549.00 10,139.25 14,620.51 14,233.84 5,724.74 774.07 416.11 2,475.66 2,426.16 1,136.68 5,565.07 27,475.14 249.28 67.53 413.35 1,969.92 1,969.92 2,692.72 2,692.72 1,598.46 1,598.46 85,518.25 82,025.94 5,983.61 2,946.00 984.42 34,694.00 1/3 77 of 483 1r/ CALIFORNIA PAYEE KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS LASER SAVER INC LEFORT'S SMALL ENGINE REPAIR LIEBERT CASSIDY WHITMORE NATIONAL CITY CAR WASH OFFICE SOLUTIONS BUSINESS PARTS AUTHORITY METRO LLC PENSKE FORD PORTILLO CONCRETE INC PRO BUILD COMPANY PROJECT PROFESSIONALS CORP PRUDENTIAL OVERALL SUPPLY RAMIREZ, 0 RANDALL LAMB ASSOCIATES INC RELIANCE STANDARD RELY ENVIRONMENTAL SAINZ, L SAKAMOTO, C SAN DIEGO MIRAMAR COLLEGE SAN DIEGO MIRAMAR COLLEGE SAN DIEGO MIRAMAR COLLEGE SAN DIEGO MIRAMAR COLLEGE SAN DIEGO MIRAMAR COLLEGE SAN DIEGO MIRAMAR COLLEGE SAN DIEGO PET SUPPLY SASI SCANLON, D SDG&E SEECLICKFIX INC SHARP ELECTRONICS CORPORATION STAPLES BUSINESS ADVANTAGE STAPLES BUSINESS ADVANTAGE STINNETT, R SWAGIT PRODUCTION LLC SWEETWATER AUTHORITY THE LINCOLN NATIONAL LIFE INS THE LINCOLN NATIONAL LIFE INS THE STAR NEWS TINOSA INC TOPECO PRODUCTS TYLER TECHNOLOGIES INC NATIONAL Cur? coRPOR VJ WARRANT REGISTER # 32 2/9/2021 DESCRIPTION GRP 104220-0002 DEC 2020 GRP 104220-01, 06, 07 - NOV 2020 GRP 104220-01, 06, 07 - DEC 2020 GRP 104220-03, 09 - NOV 2020 GRP 104220-03, 09 - DEC 2020 GRP 104220-0005 DEC 2020 GRP 104220-7002 - NOV 2020 GRP 104220-7002 DEC 2020 MOP 04840 TONER PD MOP 80702 AUTO SUPPLIES - PW PERSONNEL MATTER CARWASH SERVICES FOR FLEET FY 2021 MOP OFFICE SUPPLIES FOR SECTION 8 MOP 75943 AUTO SUPPLIES - PW R&M CITY VEHICLES FY 2021 CIP 18-10 EUCLID AVE BIKE AND PED ENHANCEMNT MOP 45707 GENERAL SUPPLIES - PW CIP 19-43 P1 SEWER UPSIZING - ENG/PW MOP 45742 LAUNDRY SERVICES - PW TRAINING REIM SLI 1 CITY OF NC CIVIC CENTER EOC POWER UPGRADE OCT 2020 - VOL LIFE VAI1826233, VCI80114 NC PUBLIC WORKS CONSULTING - ENG/PW ICC CERTIFICATION RENEWALS REIMBURSEMENT TRAINING ADV POST SUB TRAINING TUITION 124PD ACADMY / PD TRAINING 124TH REG ACADEMY / PD TRAINING TUITION 124 REG ACADEMY / PD / PDTRAINING TUITION 124 ACADEMY / PD TRAINING TUITION BASIC TRAFF TAPIA / PD TRAINING TUITION TC RADAR / PD MOP 02975 K9 SUPPLIES PD DEBIT CHGS 1/1/21-1/31/21 TRUST ACCTING TRAINING POST ADV SUB GAS AND ELECTRIC UTILITIES FOR STREETS SEECLICKFIX ANNUAL RENEWAL MAINTENANCE 20 SHARP COPIERS FOR FY21 STAPLES MOP FY21 STAPLES MOP FY21 TRAINING ADV SUB POST SWAGIT WEBCASTING FOR FY21 WATER BILL FOR PARKS DIVISION FY 2021 GRP #415491-FEBRUARY 2021 GRP #415491- JANUARY 2021 ADVERTISING NOTICES FOR FY2021 FOR SEC 8 2OPPM CO TEST GAS (P/N CYL-0016) MOP 63849 AUTO SUPPLIES - PW EDEN ANNUAL RENEWAL 1/1/21-12/31/21 CHK NO 351265 351266 351267 351268 351269 351270 351271 351272 351273 351274 351275 351276 351277 351278 351279 351280 351281 351282 351283 351284 351285 351286 351287 351288 351289 351290 351291 351292 351293 351294 351295 351296 351297 351298 351299 351300 351301 351302 351303 351304 351305 351306 351307 351308 351309 351310 351311 351312 DATE 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 2/9/21 AMOUNT 185,651.28 20,445.28 20,445.28 6,797.28 6,797.28 5,830.46 591.62 591.62 678.22 22.29 2,605.00 200.00 457.58 757.63 1,104.62 59,820.25 456.79 132,677.06 349.60 320.85 3,312.50 7,956.86 603.50 120.00 1,280.00 690.00 207.00 184.00 92.00 46.00 46.00 637.23 110.00 1,280.00 29,102.72 17,516.14 1,150.29 1,054.77 2,404.71 1,280.00 1,920.83 3,949.40 9,856.23 445.62 148.63 319.06 260.08 62,436.13 2/3 78 of 483 PAYEE U S BANK US BANK VELARDE SALES VERIZON WIRELESS VISION SERVICE PLAN WHILLOCK CONTRACTING WILLY'S ELECTRONIC SUPPLY PAYROLL Pay period Start Date 3 1/12/2021 1/✓ _ +}-�CAI_IIFO' RNIA NNTr nti TNCO R ED _ WARRANT REGISTER # 32 2/9/2021 DESCRIPTION CREDIT CARD EXPENSES/FIRE DEPARTMENT,CHR 9 EXTENDED WARRANTIES FOR 9 HEADSETS LICENSE REIMBURSEMENT VERIZON CELLULAR SERVICES FOR FY21 DEC 20/JAN 21 - VISION SVC PLAN CIP 18-07 PARADISE CREEK PARK SITE ELECTRONICS ITEMS / MIS End Date 1/25/2021 Check Date 2/3/2021 GRAND TOTAL CHK NO DATE 351313 2/9/21 351314 2/9/21 351315 2/9/21 351316 2/9/21 351317 2/9/21 351318 2/9/21 351319 2/9/21 AIP Total AMOUNT 2,728.83 346.07 75.00 8,134.34 1,645.22 309,294.69 279.45 1,402,572.11 1,052,722.34 $ 2,455,294.45 3/3 79 of 483 Certification IN ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE HEREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS AND DEMANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. PHILLIP DAVIS, FINANCE BRAD RAULSTON, CITY MANAGER FINANCE COMMITTEE ALEJANDRA SOTELO-SOLIS, MAYOR -CHAIRWOMAN JOSE RODRIGUEZ, VICE -MAYOR MARCUS BUSH, COUNCIL MEMBER RONALD J. MORRISON, COUNCIL MEMBER MONA RIOS, COUNCIL MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER IS AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY THE CITY COUNCIL ON THE 16tl OF MARCH, 2021. AYES NAYS ABSENT 80 of 483 The following page(s) contain the backup material for Agenda Item: Warrant Register #33 for the period of 2/10/21 through 2/16/21 in the amount of $261,842.17. (Finance) Please scroll down to view the backup material. 81 of 483 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: March 16, 2021 AGENDA ITEM NO.: ITEM TITLE: Warrant Register #33 for the period of 2/10/21 through 2/16/21 in the amount of $261,842.17. (Finance) PREPARED BY: Karla Apalategui, Senior Accounting Assistant DEPARTMENT: Finance PHONE: 619-336-4572 EXPLANATION: APPROVED BY: Per Government Section Code 37208, below are the payments issued for period 2/10/21 - 2/16/21. Consistent with Department of Finance's practice, listed below are all payments above $50,000. Vendor Check/Wire Amount Explanation Countywide Mechanical 351329 51,537.19 Citywide on -site HVAC Services SDG&E 351348 74,937.69 Gas and Electric Utilities FINANCIAL STATEMENT: ACCOUNT NO. Warrant total $261,842.17. APPROVED: APPROVED: ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION FINAL ADOPTION FINANCE MIS STAFF RECOMMENDATION: Ratify warrants totaling $261,842.17. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: Warrant Register # 33 82 of 483 1r/ CALIFORNIA PAYEE ACOSTA, V ALDEMCO ALL FRESH PRODUCTS BIBLIOTHECA LLC CALIFORNIA ASSOCIATION OF CODE CHICANO FEDERATION OF CORBIN & ASSOCIATES, INC COUNTY OF SAN DIEGO COUNTYWIDE MECHANICAL SYSTEMS CSA SAN DIEGO COUNTY ENTERPRISE FLEET MANAGEMENT HDL COREN & CONE HINDERLITER DE LLAMAS HOME DEPOT CREDIT SERVICES JANI-KING OF CALIFORNIA INC KIMLEY HORN MAAC PROJECT MC CLURE JR, S MENDIOLA, S METEAU JR, R MV CHENG & ASSOCIATES INC. NAN MCKAY AND ASSOCIATES INC OFFICE SOLUTIONS BUSINESS PALMA, A PRO BUILD COMPANY PRUDENTIAL OVERALL SUPPLY ROBERTS, M SDG&E SHRED -IT SMART & FINAL SMART SOURCE OF CALIFORNIA LLC SOUTH BAY COMMUNITY SERVICES STAPLES BUSINESS ADVANTAGE SYSCO SAN DIEGO INC T-MOBILE MOBILE USA INC. TODD PIPE & SUPPLY LLC U S BANK WAXIE SANITARY SUPPLY NATIONAL ICITy -N OR ED WARRANT REGISTER # 33 2/16/2021 DESCRIPTION REIMBURSEMENT FOR SAFETY BOOTS / PW FOOD / NUTRITION COVID 19 CONSUMABLES ANNUAL SUPPORT AND MAINTENANCE - RFID CACEO COURSE / NSD LIABILITY CLAIM COST TRAINING TUITION SRO MCCLURE / PD CEQA NOTICE OF EXEMPTION FILING - KIMBALL CITYWIDE ON -SITE HVAC SERVICES CDBG AGREEMENT WITH CSA SAN DIEGO ENTERPRISE FLEET LEASE - ENG/PW CONTRACT SVCS PROPERTY TAX: JAN-MAR2021 AUDIT SVCS-TRANSACTION TAX / ALLOCATION GENERAL SUPPLIES FOR FY 2021 CLEANING SERVICES FOR NUTRITION CENTER 8TH & ROOSEVELT ATP - ENG/PW CARES ACT CDBG-CV AGREEMENT WITH MAAC TRAINING ADV POST SUBSISTENCE MILEAGE REIMBURSEMENT EDUCATION REIMBURSEMENT CONSULTING SVCS FOR JANUARY 2021 PROFESSIONAL FEES, OTHER DIRECT COST MOP PURCHASE 83778 / FIRE ADMIN SUPPLIES REFUND/MOVIE CANCELLED DUE TO COVID19 MOP # 45707 - CHRISTMAS LIGHT SUPPLIES UNIFORM CLEANING SERVICE FORMER EMPLOYEE REIMBURSMENT / FINANCE GAS AND ELECTRIC UTILITIES DECEMBER SHEDDING FOR SECTION 8 CASA DE SALUD SNACKS FOR TEEMNS MOP #63845 BUSINESS CARD / COUNCIL CARES ACT CDBG-CV AGREEMENT OFFICE SUPPLIES / PD FOOD / NUTRITION ACCOUNT 972016943 - MONTHLY CHARGES / LIB CITYWIDE PLUMBING MATERIALS & PARTS TRAINING CREDIT CARD JANITORIAL SUPPLIES / FIRE DEPT GRAND TOTAL CHK NO DATE AMOUNT 351320 2/16/21 125.00 351321 2/16/21 5,042.19 351322 2/16/21 1,710.68 351323 2/16/21 10,876.89 351324 2/16/21 129.00 351325 2/16/21 5,000.00 351327 2/16/21 385.00 351328 2/16/21 100.00 351329 2/16/21 51,537.19 351330 2/16/21 2,921.64 351331 2/16/21 16, 396.09 351332 2/16/21 2,979.83 351333 2/16/21 362.29 351334 2/16/21 533.07 351335 2/16/21 11,965.79 351336 2/16/21 31,326.88 351337 2/16/21 4,778.74 351338 2/16/21 640.00 351339 2/16/21 30.18 351340 2/16/21 1,227.00 351341 2/16/21 10, 800.00 351342 2/16/21 4,980.00 351343 2/16/21 117.37 351344 2/16/21 10.00 351345 2/16/21 389.60 351346 2/16/21 200.80 351347 2/16/21 682.45 351348 2/16/21 74,937.69 351349 2/16/21 205.62 351350 2/16/21 218.83 351351 2/16/21 290.00 351352 2/16/21 9,481.00 351353 2/16/21 128.98 351354 2/16/21 7,178.70 351355 2/16/21 34.32 351356 2/16/21 524.04 351357 2/16/21 1,789.18 351358 2/16/21 1,806.13 A/P Total 261,842.17 $ 261,842.17 1/1 83 of 483 Certification IN ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE HEREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS AND DEMANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. PHILLIP DAVIS, FINANCE BRAD RAULSTON, CITY MANAGER FINANCE COMMITTEE ALEJANDRA SOTELO-SOLIS, MAYOR -CHAIRWOMAN JOSE RODRIGUEZ, VICE -MAYOR MARCUS BUSH, COUNCIL MEMBER RONALD J. MORRISON, COUNCIL MEMBER MONA RIOS, COUNCIL MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER IS AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY THE CITY COUNCIL ON THE 16tl OF MARCH, 2021. AYES NAYS ABSENT 84 of 483 The following page(s) contain the backup material for Agenda Item: Public Hearing No. 1 of 2 for the U.S Depar talent of Housing and Urban Development (HUD) 2021-2022 Annual Action Plan and the allocation of 2021-2022 HUD entitlement grant funds, program income, and funds remaining from completed projects to Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Program activities proposed for 2021-2022 Annual Action Plan. (Housing Authority) Please scroll down to view the backup material. 85 of 483 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: March 16, 2021 AGENDA ITEM NO. ITEM TITLE: Public Hearing No. 1 of 2 for the U.S Department of Housing and Urban Development (HUD) 2021-2022 Annual Action Plan and the allocation of 2021-2022 HUD entitlement grant funds, program income, and funds remaining from completed projects to Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Program activities proposed for 2021-2022 Annual Action Plan. PREPARED BY: Angelita Palm ';Housing Programs Manager PHONE: (619) 336-4219 DEPARTMENT: Housing Authority APPROVED BY: EXPLANATION: In accordance with the federal regulations at 24 CFR, Part 91, the City of National City (City) is required to prepare and submit an Annual Action Plan for its Housing and Community Development Entitlement Programs funded by the U.S. Department of Housing and Urban Development (HUD). The Second -Year Action Plan for program year 2021-2022 outlines how the City intends to spend $733,391.00 in federal Community Development Block Grant (CDBG) and $328,323.00 in federal HOME Investment Partnerships (HOME) Program entitlement funds. In addition to the funding sources noted above, the City will reprogram $52,270.65 remaining from previously completed projects for CDBG as well as reprogram $187,637.91 in HOME program income received. A second Public Hearing will be conducted at the regularly scheduled City Council meeting on May 4, 2021 to review public comments received during a 30-day public review period from March 19 through April 18, 2021, on the draft 2021-2022 Annual Action Plan; and to provide interested persons and community groups with one last opportunity to share their thoughts regarding the Plan and the CDBG and HOME Program activities being proposed for program year 2021-2022. After all public comments have been considered at the Public Hearing on May 4, 2021, the City Council will adopt the Second -Year Action Plan. A detailed explanation of the CDBG and HOME Programs and process is explained in Attachment No. 2. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: IS The City will receive $733,391.00 in CDBG and $313,035.00 in HOME Program funds for FY 2022. In addition, the City will reprogram to FY 2022 $52,270.65 of CDBG funds from completed projects and $187,637.91 in HOME program income received. ENVIRONMENTAL REVIEW: Not applicable. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Conduct the Public Hearing and approve recommendations for the CDBG and HOME funding allocations from the sources identified in the Financial Statement above. BOARD / COMMISSION RECOMMENDATION: Not applicable to this report. ATTACHMENTS: Attachment No. 1: 2021-2022 Action Plan Funding Recommendations Attachment No. 2: Explanation Attachment No. 3: 2020-2024 Overview of Consolidated Plan Priorities and Goals Attachment No. 4: Notice of Public Hearing 86 of 48 Attachment No. 2 City of National City March 16, 2021 Staff Report Explanation Public Hearing No. 1 of 2 for the U.S Department of Housing and Urban Development (HUD) 2021-2022 Annual Action Plan and the allocation of 2021-2022 HUD entitlement grant funds, program income, and funds remaining from completed projects to Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Program activities proposed for 2021-2022 Annual Action Plan. OVERVIEW: The U.S. Department of Housing and Urban Development (HUD) provides annual grants on a formula basis to entitlement cities and counties, including the City of National City for its Community Planning and Development Programs (CPD). The City of National City (City) receives Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Program funds on an annual basis. The statutory primary objectives of the CDBG Program are to develop viable urban communities by providing decent housing, a suitable living environment, and by expanding economic opportunities, principally for low and moderate -income persons. The intent of the HOME Program is to expand the supply of decent, safe, sanitary, and affordable housing. The 2020-2024 Consolidated Plan is the framework for the HUD CDBG and HOME entitlement programs. The Consolidated Plan outlines the City's housing and non -housing community development needs and priorities over five years. An overview of the Consolidated Plan's goals and priorities is attached to this staff report (Attachment No. 3). The entire Consolidated Plan, as well as additional program information, can be found at www.nationalcityca.gov/cdbq-home. PUBLIC NOTICING: Public participation is an essential part of the development of the Annual Action Plan. All noticing for this process which sets forth the City's policies and procedures for citizen participation is described in the Citizen and Community Participation Plan per City Council Resolution 2020-84 and can be found at www.nationalcityca.gov/cdq-home. FUNDING AVAILABILITY: Each year the City anticipates receiving approximately $775,000 to 790,000 in CDBG entitlement funds. Of that amount, a maximum of 15% of the total allocation may be made available for public services programs and projects. Another 20% of the CDBG allocation is reserved for administration and mandatory fair housing requirements, and the remainder (after reduction for required Section 108 debt service payments), will be available for non-public service programs such public facilities and infrastructure projects. Each year the Section 108 loan payment increases which means fewer dollars can be allocated to public services, facilities, and infrastructure projects. For this reason applications are only opened to City Departments. The Section 108 loan final loan payment will be paid made in fiscal year 2023-2024. HOME entitlement funds range from $323,000 to $357,000 each year. Of that amount, a maximum of 15% is set aside for Community Housing Development Organizations (CHDO). Another 20% of the HOME allocation is reserved for administration. The remaining amount is typically allocated to tenant -based rental assistance and homeownership assistance programs. In addition to the entitlement funds discussed above, funds remaining from previously completed programs and program income will be reallocated each program year to CDBG and HOME activities. 87 of 483 Attachment No. 2 City of National City March 16, 2021 Staff Report Explanation ELIGIBLE APPLICANTS: In consideration of funding availability described above and stated in CDBG Program Guidelines posted online at www.nationalcityca.qov/cdg-home, City Departments can sponsor non-profit agencies to carry out a CDBG public service or HOME activity by inviting qualified agencies to apply for funding to address the City and Consolidated Plan priorities. Agencies considered for funding should already provide a similar service, and appear to be capable of deploying the service following the City's program guidelines, and HUD rules and regulations found at 24 CFR Part 570 and 24 CFR Part 92. NOTICE OF FUNDING: The City Council was notified of the 2021-2022 Action Plan development during the November 17, 2020 meeting. Applications were made available for eligible City programs and projects that could meet CDBG and HOME program objectives. On November 24, 2020, a Notice of Funding Availability (NOFA) was sent to City departments. The process would allow City departments to "sponsor" a non-profit organization. These organizations would work directly with City departments to meet the Consolidated Plan goals and priorities. APPLICATION REVIEW PROCESS: Submitted applications are first determined to be eligible under CDBG and HOME rules and regulations, Consolidated Plan goals and priorities, and were further evaluated based on the following criteria: • • Demonstrated organizational or community need Experience with administering CDBG/HOME or federal grant funds Organization's capacity, experience with projects of similar type Budget and value of proposed work and deliverables for dollars invested Quality of the approach, clarity, rationale, and feasibility FUNDING RECOMMENDATIONS/ANNUAL ACTION PLAN APPROVAL: Project and Program funding recommendations for the CDBG and HOME entitlement grant funds, program income, and funds from previously completed projects will be presented at the first public hearing held on March 16, 2021. A second Public Hearing will be conducted on May 4, 2021, to review public comments received during a 30-day public review period (March 19 through April 18, 2021) of the draft 2021-2022 Annual Action Plan; and to provide interested persons and community groups with one last opportunity to share their thoughts regarding the Plan and the CDBG and HOME Program activities being proposed. After all public comments have been considered at the Public Hearing on May 4, 2021, the City Council will adopt the 2021-2022 Action Plan and proposed CDBG and HOME Program funding recommendations. HUD REVIEW: Upon receipt of the 2021-2022 Action Plan, HUD has 45 days to review and accept the Plan, specifically details the City's utilization of its CDBG and HOME program funds. HUD acceptance notices will be received in mid to late July. 88 of 483 Attachment No. 2 City of National City March 16, 2021 Staff Report Explanation ANNUAL ACTION PLAN TIMELINE I CDBG & HOME PROGRAMS Date Action November 24 CDBG/HOME Notice of funding availability to City departments and grant funding applications available for distribution December 1 Virtual Application Workshop January - April Drafting of the 2021-2022 Action Plan January 21 Application submission deadline for CDBG and HOME FY 2022 funding 6 p.m. February Application Review Period March 5 to March 15 10-day Notice of Public Review Period and Notice of Public Hearing for the Draft 2021-2022 Action Plan March 16 Public Hearing No. 1 on the 2021-2022 Action Plan and applicant funding recommendations to the City Council March 19 to April 18 30-day Notice of Public Review Period and Notice of Public Hearing for the Draft 2021-2022 Action Plan May 4 Virtual Public Hearing No. 2 (Final) to Approve the Draft 2021-2022 Action Plan May 18 Submission of the 2021-2022 Action Plan to HUD May Applicant Award Notification June July Begin contract negotiations with selected CDBG and HOME subrecipients and initiate environmental reviews. July 1 Begin Program Year All dates listed herein are tentative and are subject to change. Persons relying on this Schedule must contact the CDBG and HOME Program Administer at 619-336-4219 to confirm the actual date of each event listed above as the timeframe nears. 89 of 483 Attachment No. 3 Consolidated Plan Goals 2020-2024 The 2020-2024 Consolidated Plan is the framework for the U.S. Department of Housing and Urban Development's (HUD) Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Program entitlement programs. The Plan outlines the City's housing and non -housing community development needs and priorities over five years. 1. Goal: Provide Decent and Affordable Housing • Priority: Conserve and Improve Existing Affordable Housing o Assistance to aid in the rehabilitation of single-family and multi -family housing units. o Acquisition, with or without rehabilitation, of multi -family projects. o Conservation of affordable housing at risk of converting to market -rate housing. • Priority: Provide Homeownership Assistance o Assistance to low -moderate income households to achieve homeownership o Assistance to developers for the acquisition and re -sale of housing units to low -moderate income homebuyers. • Priority: Assist in the Development of Affordable Housing o Assistance to developers in the development of affordable housing, including acquisition, land assemblage, construction, conversion, purchase of affordability covenants, or other mechanisms. 2. Goal: Provide Community Facilities and Infrastructure • Priority: Provide for Community Facilities and Infrastructure o Provide for new and improve existing community facilities and infrastructure. These may include, but are not limited to: parks and recreation facilities; fire equipment; facilities prioritized on the City's ADA Transition Plan; community facilities; and public streets, sidewalks, curbs, and rights -of -way. o Repayment of Fire Station 34 Section 108 loan. Assess the need for and (when determined to be warranted) pursue section 108 loans for large-scale public improvement and revitalization projects. 3. Goal: Provide Community and Supportive Services • Priority: Provide Community and Supportive Services o Provide for a variety of community and supportive services, with special emphasis on crime awareness and prevention programs such as code enforcement, services for the homeless, seniors, at -risk youth, the disabled, and other persons with special needs. 4. Goal: Support Initiatives that Reduce Homelessness • Priority: Support Initiatives that Reduce Homelessness o Tenant -based rental assistance that targets families that are homeless or housing insecure, and families experiencing domestic violence. Page 1 of 2 90 of 483 Attachment No. 3 o Participate in the San Diego County Regional Task Force on the Homeless (RTFH) and South Bay Homeless Alliance to assess needs and coordinate efforts to address needs. 5. Goal: Promote Equal Housing Opportunity • Priority: Promote Equal Housing Opportunity o Promote fair housing services provided by the City's fair housing services provider. o Comply with fair housing planning requirements (as identified in the Analysis of Impediments to Fair Housing Choice). 6. Goal: Planning and Administration • Priority: Planning and Administration o Invest in the planning and administration of the CDBG and HOME programs. Page 2 of 2 91 of 483 Attachment No. 4 CA IFR NAT I ON. try' Mncorro►t Eo PUBLIC NOTICE CITY OF NATIONAL CITY FIRST PUBLIC HEARING FOR THE DRAFT FISCAL YEAR 2021-2022 ANNUAL ACTION PLAN In accordance with the federal regulations at 24 CFR, Part 91, the City of National City (City) is required to prepare and submit an Annual Action Plan for its Housing and Community Development Entitlement Programs funded by the U.S. Department of Housing and Urban Development (HUD). The 2020-2024 Consolidated Plan outlines the City's housing and non -housing community development needs and priorities over five years. The Action Plan 2021-2022 outlines how the City intends to spend $733,391 in federal Community Development Block Grant (CDBG) and approximately $328,323 in federal HOME Investment Partnerships (HOME) Program entitlement funds. In addition to the funding sources noted above, the City anticipates reprogramming $52,270.65 from CDBG activities and allocating $187,637.91 in program income earned from previous years HOME activities to fund activities listed under the proposed Action Plan. Notice is hereby given that the City Council of the City of National City will hold the first of two Public Hearings on Tuesday, March 16, 2021, at 6:00 p.m. The purpose of the Public Hearing is to provide an opportunity for public comment on the recommendations made to the City Council for funding of the CDBG and HOME Program activities listed under the 2021-2022 Action Plan. The Consolidated Plan is available for review on the City's website www.nationalcityca.gov/cdbg-home. Hardcopies are available at the office of the City Clerk (1243 National City Boulevard, National City, CA 91950) A second Public Hearing will be conducted at the regularly scheduled City Council meeting on May 4, 2021, to review public comments received during a 30-day public review period (March 19 through April 18, 2021) of the draft 2021-2022 Annual Action Plan; and to provide interested persons and community groups with one last opportunity to share their thoughts regarding the Plan and the CDBG and HOME Program activities being proposed. After all public comments have been considered at the Public Hearing on May 4, 2021, the City Council will adopt the 2021-2022 Action Plan and proposed CDBG and HOME Program funding recommendations. Public participation is an essential part of the development of the Annual Action Plan. Interested persons and community groups are invited to watch and participate in these hearings. Both Public Hearings will be held online at www.nationalcityca.gov/webcast. Public comment may be submitted prior to the meeting in writing by email at PublicComment@nationalcityca.gov; yca.gov; please provide the agenda item number and title of the item in the subject line of the email. Public comments or testimony is limited to up to three (3) minutes. All email comments received by 4:00 p.m. on the day of the meeting will be emailed to the City Council Members and made a part of the official record. To provide live public comment during the meeting, you must pre -register on the City's website at https://www.nationalcityca.gov/publiccomment by 4:00 p.m. on the day of the regular meeting to join the City Council Meeting. For more information regarding this process, please contact the City Clerk's Office at (619) 336-4228 or by email at Clerk@nationalcityca.gov. Hearing -impaired persons, please use the CAL Relay Service Number 711. Asistencia en Espanol: Para que le interpreten la informacion en espanol, llame al (619) 336-4391. Brad Raulston, City Manager City of National City March 5, 2021 92 of 483 Attachment No. 1 - CALIFORNIA -- NATIONAL Lf 1jf a (4 v Community Development Block Grant & HOME Investment Partnerships Program's Annual Action Plan Funding Recommendations for HUD Program Year 2021 City Fiscal Year 2021-2022 �' INCORpoi r CDBG Entitlement: $733,391.00 HOME Entitlement: $328,323.00 CDBG Reallocation $ 52,270.65 HOME Program Income : $187,637.91 Total CDBG funds available: $785,661.65 Total HOME funds available: $516,460.91 A summary of the applications with the eligibility analysis is available at www.nationalcityca.govlcdbg-home. Community Development Block Grant (CDBG) Program Public Service Funds Available: $82,091.15 Applicant Name Program Name Funding Request FY 2021 Staff Recommendation FY 2020 Award Community Services Department Casa de Salud Youth Afterschool Program $ 91,011.00 $ 20,000.00 $ 48,818.00 National City Public Library Literacy Services Program $ 52,000.00 $ 43,000.00 $ 52,000.00 SBCS NCPD Support Service: Domestic Violence Response Team $ 20,000.00 $ 19,091.15 $ 17,500.05 TIP San Diego Trauma Intervention Programs $ 14,168.15 $ - $ - Police Department AEDs for Police Vehicles $ 39,992.70 $ - $ - Public Service Total: $ 177,179.15 $ 82,091.15 $ 118,318.05 Non -Public Services Funds Available: $556,892.50 Applicant Name Program Name Funding Request FY 2021 Staff Recommendation FY 2020 Award Neighborhood Services Division Housing Inspection Program $ 52,270.65 $ - $ 120,981.39 Fire Department Fire Station 34 Section 108 Loan Payment $ 556,892.50 $ 556,892.50 $ 532,804.00 Non -Public Service Total: $ 609,163.15 $ 556,892.50 $ 653,785.39 Planning and Administration Funds Available: $146,678.20 Applicant Name Program Name Funding Request FY 2021 Staff Recommendation FY 2020 Award National City Housing Authority CDBG Program Administration $ 105,678.00 $ 105,678.00 $ 122,757.40 CSA San Diego County Fair Housing and Tenant -Landlord Education $ 41,000.00 $ 41,000.00 $ 35,000.00 Planning & Admin Total: $ 146,678.00 $ 146,678.00 $ 157,757.40 CDBG Total: $ 933,020.30 $ 785,661.65 $ 929,860.84 HOME Investment Partnerships (HOME) Program Project Funds Available: $464,364.91 Applicant Name Program Name Funding Request FY 2021 Staff Recommendation FY 2020 Award South Bay Community Services Tenant Based Rental Assistance Program $ 356,532.00 $ 415,491.37 $ 446,940.99 National City Housing Authority set -aside for a Community Housing Development Organization (CHDO) CHDO Set -Aside $ 49,248.45 $ 49,323.45 $ 88,600.00 Total: $ 405,780.45 $ 464,814.82 $ 535,540.99 Planning & Administration Funds Available: $51,596.09 Applicant Name Program Name Funding Reauest FY 2021 Staff Recommendation FY 2020 Award National City Housing Authority HOME Program Administration $ 51,596.09 $ 51,646.09 $ 50,120.89 HOME Total: $ 457,376.54 $ 516,460.91 $ 585,661.88 Page 1 of 1 93 of 483 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing, 1) the City (Buyer) to utilize cooperative purchasing established through Sourcewell previously known as National Joint Powers Alliance (NJPA), consistent with Municipal Code Section 2.60.260 for cooperative purchasing, to purchase Tyler Technologies New World Computer Aided Dispatch (CAD) based on their member number 17730; and 2) finance through Capital Innovations for a seven (7) year lease purchase agreement; and 3) the Mayor to execute the Agreement with Tyler Technologies and Capital Innovations to replace outdated current police department CAD for a lease purchase agreement in the amount of $1,060,000. (Police) Please scroll down to view the backup material. 94 of 483 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: March 16, 2021 AGENDA ITEM NO.: ITEM TITLE: Resolution of the City Council of the City of National City authorizing, 1) the City (Buyer) to utilize cooperative purchasing established through Sourcewell previously known as National Joint Powers Alliance (NJPA), consistent with Municipal Code Section 2.60.260 for cooperative purchasing, to purchase Tyler Technologies New World Computer Aided Dispatch (CAD) based on their member number 17730; and 2) finance through Capital Innovations for a seven (7) year lease purchase agreement; and 3) the Mayor to execute the Agreement with Tyler Technologies and Capital Innovations to replace outdated current police department CAD for a lease purchase aareement in the amount pf $1.060,000. PREPARED BY: Jose Tellez, Chief of Police DEPARTMENT: Police PHONE: (619) 336-4511 APPROVED BY: EXPLANATION: See attached. FINANCIAL STATEMENT: APPROVED: '�" FINANCE ACCOUNT NO. 629-403-082-281-0000 APPROVED: MIS As part of our existing agreement with TriTech/Central Square will receive $97,000 in 1-Y21, with an average increase of an additional $5,000 per year based on the recent annual increases that have occurred. A seven year estimate cost of the currenl CAD for 2021 — 2027 is $784,000, or an average annual cost of $112,000. In comparison, the seven year lease purchase agreement with Tyler/Capital Innovations for 2021 — 2027 will average $151,400 annually (in arrears), a total of $1,060,002. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION FINAL ADOPTION STAFF RECOMMENDATION: Approve Resolution BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Explanation / Staff Report (Attachment "A") 2. PowerPoint Presentation — NCPD CAD (Attachment "B") 3. TheCapital Innovations Sample Credit Application (Attachment "C") 4. Capital Innovations Purchase Quote (Attachment "D") 5. Tyler Technologies LSA Agreement (Attachment "E") 6. Sample Master Lease Purchase Agreement (Attachment "F") 95 of 483 CALIFORNIA =-+ NATIONAL CITY e:31 ��._. INCORPORATED -_ DATE: February 16, 2021 TO: Brad Raulston, City Manager FROM: Jose Tellez, Chief of Police SUBJECT: Resolution of the City Council of the City of National City to authorize the waiver of the bid process to purchase a Computer Aided Dispatch (CAD) product from Tyler Technologies SUMMARY: It is recommended the City Council approve the Resolution of the City Council of the City of National City to waive the bid process to purchase a Computer Aided Dispatch (CAD) system from Tyler Technologies as part of a needed technology upgrade to the Police Department's Communications Center. BACKGROUND: A Computer Aided Dispatch (CAD) system is the foundation and brains of a police department communications center. CAD is the primary system used by dispatchers to receive, document, and dispatch police officers to service calls. CAD also archives all aspects of service calls to include location, disposition, the names and Ds of officers, and those residents contacted by officers during the call. As technology advances, it is essential that police communications systems maintain pace. In recent years, the National City Police Department has experienced challenges as demands on systems connectivity and threats of ransomware cyber-attacks have increased. The CAD system in the Communications Center is over twenty years old. The system is TriTech, owned by Central Square, and was designed to be used primarily by Fire departments and Paramedics. Throughout the time TriTech has been used by the Police Department, police dispatchers have found it to be inefficient, difficult to navigate, and lacks the connectivity between other essential law enforcement data systems. As such, dispatchers need to run multiple systems independently and simultaneously from each other to accomplish the same task capable by modern police CAD systems. While other police departments in the county have modernized their communications systems, the National City Police Department continues to work at a disadvantage given all the features now available in new CAD systems. The current system, TriTech, was designed for fire and paramedic applications. Over the years, maintenance and version upgrades have taken place, however, the system 1 96 of 483 has not been able to keep up with modern CAD systems currently employed by other police departments. Police Dispatchers often have to create workarounds to enter or attach essential information to calls or search for archived information. TriTech lacks the configurability needed by dispatchers to reduce the time required to run multiple screens and programs simultaneously. Some of TriTech's fire / medic CAD features, which are not related to or needed for police use, cannot be disabled or removed. In short the Police Department's CAD system is antiquated, not designed for police use, is cumbersome to operate and negatively affects dispatch efficiency while handling critical calls when time or information sharing is of the essence. From the fall of 2019 through September 2020, the Police Department conducted extensive research regarding CAD manufacturers. Police personnel met with vendors, visited allied police communication centers and met with team members (dispatchers, police officers, administrative and IT support staff) to collect information regarding the various CAD systems in use by other agencies. As a result of this effort, the Tyler Technologies New World CAD stood out as the best system suited for the National City Police Department. Tyler Technologies is a mainstay, locally and nationally, in the CAD industry and in use by departments our size, specifically the El Cajon and La Mesa Police Departments. From the information gleaned from El Cajon and La Mesa, the Tyler Technologies New World CAD system is robust while remaining nimble to allow for customization to each agency's specific needs and preferences. The ability to interface with other products and the connectivity with established law enforcement data systems, provide technology currently not in place at the National City Police Department. The Tyler Technologies CAD provides the following: • Fully customizable features to improve dispatch work flow • Law Enforcement query data, on persons and property through various systems, is added to calls for service without additional steps by dispatchers • Call for Service entry screen is designed to agency preference, prioritizing information improving efficiency • Detailed map layers with Pictometry (aerial image process showing the fronts / sides of building and locations on the ground) • Officer and Vehicle GPS Tracking system • Enhanced capabilities: o Geo-fencing — useful during reverse 911, Problem Oriented Policing (POP), tracking patrol data for high crime areas that may not generate specific calls for service. o Live vehicle / officer tracking — useful during vehicle / pedestrian pursuits to enhance officer safety and to provide immediate assistance to emergency situations where communications may not be possible. • Connectivity of map and navigation features to call screens, eliminating the need to access internet map programs 7 97 of 483 • Proximity Dispatching capabilities to send the closest unit to an emergency call based on GPS • Ability to research, redact, and produce call information for various needs like Public Records Requests (PRA), crime statistics, or city reports • Interface with SPIDRTech Software allows dispatch to send information and updates to citizens who have contacted the police department for assistance. • Ability to attach metadata information through an interface feature with Taser International Inc. body worn cameras (BWC) of service call types, location, times, and case or incident numbers As mentioned, Tyler Technologies New World CAD systems are in use by other agencies in the county with additional departments considering the product. While the standardization of police CAD systems currently does not exist in San Diego County, we do have the ability to learn from each agencies' experiences with various systems and vendor customer service. The Tyler Technologies New World CAD product has received excellent reviews by the agencies that use it and was preferred by members of our police department during an interactive product demonstration, prior to the pandemic. If the contract is approved by the City Council, Tyler Technologies will develop / build the CAD software starting immediately. The anticipated go -live date for the CAD system is approximately one-year. FISCAL IMPACT: The contract with Tyler Technologies for full implementation is attached (Attachment A). Currently, the city's financial obligation for TriTech involves a recurring annual maintenance agreement. The below graph illustrates expenditures from 2017 — 2020: 100,000.00 90,000.00 80,000.00 70,000.00 60,000.00 Central Square f TriTech Annual Maintenance 77,303.95 82,148.63 87,574.31 92,432.70 2017 2018 2019 2020 ❑TriTech Annual Maintenance 3 98 of 483 The following graph illustrates the comparison projected Annual Maintenance expenditures between Central Square and Tyler Technologies. 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 ❑ TriTech ❑ Tyler New World 2021 97,000 147,798 148,969 Pr 2023 2024 2025 2026 2027 151,380 152,622 53,889 2027 127,000 155,181 Note: TriTech maintenance costs are projected based on the average of annual increases of approximately $5,000 per year. The police department is requesting to waive the competitive formal bid requirement and requests authorization to enter into a seven (7) year contract / financing option with Tyler Technologies. The below graphic illustrates the CAD purchase and maintenance fees. The maintenance fees are recurring after conclusion of the 7 year contract / financing option. 160,000.00 140,000.00 120,000.00 100,000.00 80,000.00 60,000.00 40,000.00 20,000.00 0.00 ® Finan O An nu • Total Projected Tyler New World Costs Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 ced Purchase 89,279.86 89,279.86 89,279.86 89,279.86 89,279.86 89,279.86 89,279.8E al Maintenance 58,519 59,689.38 60,859.76 62,030.1.4 63,200.52 64,370.90 65,541.2€ Cost 147,798.86 148,969.24 150,139.62 151,310.00 152,480.38 153,650.76 154,821.1 4 99 of 483 FUNDING: In 2020, the city paid Central Square $97,000 as the annual maintenance fee. The city will continue to pay an additional $5,000 (average) per year, based on past increases. In 2026, the projected annual maintenance cost is approximately $122,000. The projected cost difference between the annual maintenance of TriTech and the actual purchase of a new CAD system plus annual maintenance with Tyler Technologies, is approximately $50,000 in Year One and approximately $30,000 in Year Seven. The project may be funded by using General Funds in combination with revenue generated by the False Alarm Program permits and false alarm fines. ADDITIONAL INFORMATION: • Over the course of the last two years, the police department has taken steps to enhance technology, modernize existing equipment, and upgrade the work environment necessary for the dispatchers to effectively and efficiently perform the required duties of their job. The following is a list of improvements that have been completed in the Communications Center: • January 2020 — 911 Phone System Upgraded o The VESTA telephone system was upgraded to accept Text to 911 calls for service - Next Generation (NG911) 911 compliant. o January 5, 2021, all San Diego County police communications center went live and began officially accepting Text to 911 calls for service. • July 2020 — Communications Center Remodel and Upgrade o For three weeks the dispatchers worked in temporary workplaces while the Communications Center was completely gutted and remodeled. During the remodel, the following improvements were completed: ■ Flooring replaced, removing all of the original carpeting from the center. Long lasting, static preventing carpet was installed. ■ Fully Ergonomic Workstations were installed. The new workstations allow the dispatcher the flexibility to sit or stand during their 12 hour shifts. • Ongoing — P25 Radio Upgrade o The County Radio System is mid -way through an upgrade to be P25 compliant. The interoperability of our radio system has drastically improved over the years and this new phase, when completed, will improve communications by transitioning law enforcement radios from analog to digital. 5 100 of 483 ENVIRONMENTAL IMPACT: This proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) found under the California Code of Regulations, Title 14, Division 6, Chapter 3, Article 20, Section 15378 and is has been determined that the activity is not a "Project" as defined under the Code because it will not result in a physical change in the environment. In addition, the activity does not constitute a "Project" within the meaning of the California Public Resources Code Section 21065 in that it has no potential cause to either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activing is not subject to CEQA. Thus, no environmental review is necessary. ATTACHMENTS: 1. PowerPoint Presentation — NCPD CAD (Attachment "B") 2. Capital Innovations Sample Credit Application (Attachment "C") 3. Capital Innovations Purchase Quote (Attachment "D") 4. Tyler Technologies LSA Agreement (Attachment "E") s. Sample Master Lease Purchase Agreement (Attachment "F") National City Police Department 1200 National City Boulevard, National City, CA 91950 619/ 336-4400/Fax 619/ 336-4525 www.nationalcitypd.org 6 101 of 483 CALIFORNIA Nita I N1AL CITy �- �NCORPORAT Computer Aided Dispatch (CAD) Project March 16, 2021 Jose Tellez, Chief of Police Amber Lashbrook, Support Services Manager 102 of 483 C,SLIFDRNIA NATIONAL On 1131 txcoarumwoo ..J Background ❖ National City Police Communications Center has a CAD system that is over 20 years old. ❖ Central Square, formerly Tri-Tech, was designed for Fire Department and Medical / Paramedic use. ❖ Over time, Dispatchers, Records personnel, and our Crime Analyst have found workarounds and have adapted to the system not originally designed for Police use. ❖ The Communications Center is falling further behind compared to other agencies in the County as technology continues to advance. ❖ The addition of new software / systems are creating efficiency challenges and placing Dispatchers at a disadvantage. 103 of 483 ' - CpL1FORNIA Tl0 NAI ciry 1331 Eikoarua *wo 21st Century Dispatching Prior to 2019, National City Police Department had not made significant technological advances to upgrade the Communications Center. Recent upgrades include: ❖ January 2020 — Vesta 911 Phone Upgrade. Text to 911 and NG911 compliant (State funded). ❖ July 2020 — Dispatch Remodel. Ergonomic workstations and chairs, modernized appearance (primarily funded by State and asset forfeiture). ❖ September 2020 — MDC upgrade for Police vehicles (grant funded). 104 of 483 C,SLIFORNIR.�-- NATIO AL Us1;.41iMuaLM� " .. Calls for Service Central Square Indent Viewe-Indent ID [62a] Msslerrnciraed lvanter[2021012e0a47i1 Address II124NDreaeIAv Ap15rk.I Boildngr - Cdy. iIWcT IL7P4as1 LIT( Nature/Problern: !CHECK THE WELFARE t%IGEN J Caner Name .IESMER.ALDA-f T License Note Imo lmaton Phone. IE19j 1 EMI Rate 5101e Called Fmm, SailE Carer Type.IFAMILY IeWINTER Melhad Recdd:[911 ClmTekea I1128/2021 I0:2527 REESE. AA DIREY Lacakm Nemo1199 N DREXEL Laeellm Typal Cross BMW IE ONISION ST/CERYANTES AY R1arvly 1 P2 URGENr 46 ICI i ALI I II Yrc�Case l Snapsaai Cancel Oild SaowAo 9eac,1 91 J � DIYlkccafeCall 1 €fit Addeonallrrwmetal I Aaignn. Act,4wsI Gall Racks Commespsiblmes I Ede Log limas I Transport Info I User Data1 AtAchm!nhl Data Time MR CC. Comma i2Ar2021 73351 AR. Y [31](Quart Nam ODOR Check � F2/2027 0:5922 A. Y [20]121JENRTTOCJWTHONE FOR F /2Q/2021 0:5011 AR Y [29J 12VPT 10-16 LAST OFI 219K021 09803 AR Y [20]121J 141.6 /26r20D 09000 AR Y[27JReqvested Case Numbelji+jreeuedlorIncident l(20210120044771Juaiudidion: NATYDRAL CITYPOLICE CaseNumhel(s):210U529. i2Av2021 09055 AR. Y [25]INET CAUTION 140TEFOFII 1 I26f2621 0:3015 AR. Y j25j 1212 SUBJOETAJNED F28/212 0:3009 AR Y [24]6ecotdmLocation Atr123J194NCARPEL I2dr2027 0:3754 AR. Y[29]127JOLITONTHE 51JBJ149NDREXEL R OZ021 0:35-01 123JCHUY [22]123JCHU2Ai5came 101r20r202110:7601.Le6tude'72.69055d7390373.Langilude& -117001399033333 j2 t021 0:3550 121JTECY[21]I21JTEC,46canaat01726d202110:35:50.Lalilude:320903856666607.LaagiNde: -117 0820505 9dd + Tyler New World Call Location: Verified Loaf - CEDAR ST / MAYBERRY LFN Ink 602T CHICO, JEAN Oispco3ons _ OAstaided cell: i.tlenatire 2.vanis I.a.Peopk ;LNCI% SF91{ Call Nat etmr Personnel Cluestawnore Oen. Vehicle Folaeon Ckn Qualifier Venue El Cajon Override Location Type: Intersection Pali Lnked(alls Oo rilnddents 1iRl &Logs ni.Mern 4 Date • Entered By Narrate., Critical Restrict 01IZ5/2021 11:50:15 syeager RP 15 CONCERNED BECAUSE HE IS STARTING FIRE TO REEF WARM AND COOK 01120/202111:43:24 sycagir AHOMELESS SV83HAS SET CAMP ATTHE VERY END OFCEDAR No - General No • General A 105 of 483 Mapping Central Square •Geo - [System View - Q,,TriTech \VISICAD \ Data \SystemMapthemes National_city_931_5x32.mxdi • file View Search Tools Window n x - X e VisKAD Geo 0 D CAD Data D Unit Ai Scen4 D. Unit Ai Post CI 0 Units [3 D Incidents 0-1LI Units at Incident W 0 Units at Stafion EJ 0 Stations User Markers 8 Premises EEll 8um Permits irr 0 HUM& 8Li Hydrants Gln Service lOut of Service 8 0 Alarms Lai 324i),05 N s3004 51, Lcn. 11705'06W Viewang. 1.0353 r. 1.4535 MiI Tyler New World r4P, - - . _ _ LIalaeLL"T morsel. 4 CART. 31 8 ;�. CALIFORNIA - NATIONAL CIS 1331 txcoaruwuNo ..J Tyler New World Additional Features & Training ❖ On site training for the system builds and go -live for all modules. ❖ Tyler University — online training resource available 24/7. ❖ Annual training conference ❖ Annual statewide user training provided by those who use the software. ❖ Event Ticker — Providing real time data on all incoming calls in one location. ❖ One Stop Query Capabilities — All records checks required by the Dispatchers can be performed with one command. ❖ Rapid SOS Integration with CAD Software •• Enhanced Search & Print Capabilities ❖ CAD to CAD Interoperability ❖ BOLO Capabilities with picture and video attachments 107 of 483 ;�. C,SLIFORNIR--_=.. NATIONALMr u1;.48Mu1tM� " .. Tyler New World What Else Do We Get? In addition to CAD and Mobile, Tyler New World provides: ❖ Shieldforce — Mobile application for smart phones providing call data to units in the field and real time GPS locations. ❖ Brazos — Citation, Field Interview and AB953 required forms in one application on the officers smartphone stored in our databases. ❖ CAD Web View — Real time status monitor for employees not =Ow at a CAD or • '. - workst 108 of 483 ;�. C,SLIFDRNIA NATIONAL CIS rxcoarwUrPo . J National City 7 C's Pledge & Strategic Plan ❖ Customer Service responding to • Courtesy backs ❖ Collaboration information and manage events. ❖ Public Safety Improve efficiency in calls for service. Ability to locate and respond to those needing help. Responsive by providing call and updates to callers. Ability to share critical with other agencies critical Improve operational readiness. Q 109 of 483 / CALIFORNIA -"*Ic` NATION, Lary INCORPORATE13 Questions 110 of 483 Application for Equipment Lease Legal Name of Lessee (Applicant) Tax ID# Web address (if, applicable) Address City State Zip Person(s) to Contact for Clarification Regarding Project Name Name Email Title Title Fax Phone Phone Obligations / Economics Bank Qualified a NQn-Barlk Qualified ❑ Are the Applicant's obligations bank qualified (i.e., expected to issue less than $10 Million in tax-exempt financing this calendar year)? Moodv'B InveatQtti€1fViQe;___ Standard & Poor's: Fitch: Please list the Applicanfa current underlying bond rating from the rating agencies listed above (if applicable) Discuss the Applicant's economic trends (stable, positive, negative) and reasons for any variation Yes in No f Has the Applicant ever defaulted or non -appropriated on an obligation? If Yes, Please explain Demographic Information Please provide the following demographic information (please attach any applicable demographic statistics) Approx square Mlle Cities, Towns and Counties Population Increasing or Decreasing Population? If Decreginth____ Please explain Educational Applicants Only Enrollment Increasing or Decreasing Enrollment? Please also answer the above question regarding the resident city If Decreasing, _.. _ _ Please explain Elementary: _. Middle: High School: How many schools make up the district (please list the number and type of each school)? Other: THIS DOCUMENT IS NOT A COMMITMENT OR AN OFFER TO PROVIDE FINANCING 111 of 483 Essential Use Form Purchase Deacriptlon (pleats be specific and attach any applicable equipment lists or invoices available) Est. Equipment Delivery Date Are any of the Lease ProCeeda fOr reimbursement of prior purchases? If yes, has a Reimbursement Resolution been approved by the Governing Body? Yes d No 0 Is the Equipment replacing existing equipment? If Yes Please state how long you have currently used the Equipment and the reason you are replacing the Equipment What will the Applicant do With the oId equipment that is being replaced? If No Please state the reason additional equipment is needed What will the Applicant dd With the did equipment that is being replaced? Please describe In detail the foil*wing (please be specific) What wit the Equipment be used for? Describe the essential nature of the equipment financed List the specific department that Will be the primary user of the Equipment Lease Payments Yes El NO.O Will the lease payments be made from Applicant's General Fund? If No. From which Special Fund Will the lease payments be made? Yes fl ttq j l Will any federal grant or loan mdrlies be used? If so, please describe Yes fl No fl Has the first payment been appropriated? Terms and Conditions Total Cost of Equipment Term (in years) Advance fl Arreies Q Remittance (choose drug); Advance payment Amount to Finance Annual ❑ Semi -Annual ❑ Quarterly ❑ Monthly ❑ Frequency (choose one): Equipment Delivery Date Insurance Company Name or Indinafe Self Insured Amount of Liability Insurance Amount of Property Damage Insurance The undersigned hereby eertifiee that all the information in the above Application for Equipment Lease and Essential Use Form is true, complete and correct. Applicable Signature Title Date THIS DOCUMENT IS NOT A COMMITMENT OR AN OFFER TO PROVIDE FINANCING 112 of 483 two If? capital innovations 300 Village Drive, Suite 303 King of Prussia, PA 19406 (800) 635-3273 Toll Free (888) 810-4200 Facsimile October 29, 2020 Tax Exempt Lease Purchase Quotation prepared especially for: National City (CA) We appreciate the opportunity to provide you with a quote for Tax Exempt Municipal Financing in cOnjutiotIon with Tyler Technologies. Project Cost: $562,605.00 ODtton$. 5 annual payments of $122,111.72 due in arrears (2.79%) 7 annual payments of $ 89,279.86 due in arrears (2.79%) Document Fee: $495.00 Escrow Fee: $795.00 This Transaction must be designated as tax-exempt under section 103 of the Internal Revenue Cost of 1986 as amended. We can include documentation and escrow fee in financing or may be paid separately. Please contact your representative for more information. 10-year terms may not allow non -appropriation language. Leases total amount of Tax -Exempt debt to be issued in this calendar year will not exceed the $10,0011,OOOIl It. If that amount exceeds $10,000,000 please advise as that may impact pricing. This Is a proposal only and is not a commitment to finance. This proposal is subject to review and approval of execution of mutually acceptable documentation. The quotation includes a placement fee, which may be capitalized into the project cost at the discretion of the investor. Quotation based on Treasury Swaps as of October 14, 2020. Quote valid good through 11/13/2020 Please contact me at (877) 725-3100 with any questions or if you would like us to alter the structure In any way. We look forward to working with you. Thank you, smart- G. 3raw Stuart G. Brown President/CEO 877-725-3100/direct dial co.file 113 of 483 • ••:•• tyler • technologies LICENSE AND SERVICES AGREEMENT This License and Services Agreement is made between Tyler Technologies, Inc. and Client. WHEREAS, Client selected Tyler to license the software products and perform the services set forth in the Investment Summary and Tyler desires to perform such actions under the terms of this Agreement; WHEREAS, Client is a member of Sourcewell (formerly known as National Joint Powers Alliance) ("Sourcewell") under member number 17730. WHEREAS, Tyler participated in the competitive bid process in response to Sourcewell RFP #090320 by submitting a proposal, on which Sourcewell awarded Tyler a Sourcewell contract, numbered 090320-TTI (hereinafter, the "Sourcewell Contract"); WHEREAS, documentation of the Sourcewell competitive bid process, as well as Tyler's contract with and pricing information for Sourcewell is available at https://sourcewell-mn.gov/cooperative-purchasing/; and WHEREAS Client desires to purchase off the Sourcewell contract to procure public safety software functionality from Tyler, which Tyler agrees to deliver pursuant to the Sourcewell Contract and under the terms and conditions set forth below; NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and promises set forth in this Agreement, Tyler and Client agree as follows: SECTION A — DEFINITIONS • "Agreement" means this License and Services Agreement. • "Business Travel Policy" means our business travel policy. A copy of our current Business Travel Policy is attached as Schedule 1 to Exhibit B. • "Client" means City of National City, CA. • "Defect" means a failure of the Tyler Software to substantially conform to the functional descriptions set forth in our written proposal to you, or their functional equivalent. Future functionality may be updated, modified, or otherwise enhanced through our maintenance and support services, and the governing functional descriptions for such future functionality will be set forth in our then -current Documentation. • "Developer" means a third party who owns the intellectual property rights to Third Party Software. • "Documentation" means any online or written documentation related to the use or functionality of the Tyler Software that we provide or otherwise make available to you, including instructions, user guides, manuals and other training or self-help documentation. • "Effective Date" means the date on which your authorized representative signs the Agreement. • "Force Majeure" means an event beyond the reasonable control of you or us, including, without limitation, governmental action, war, riot or civil commotion, fire, natural disaster, or any other cause that could not with reasonable diligence be foreseen or prevented by you or us. • "Investment Summary" means the agreed upon cost proposal for the software, products, and services attached as Exhibit A. National City, CA LSA Agreement 110620.docx ••:;:•. tyler 114 of 483 National City, CA LSA Agreement 110620.docx • "Invoicing and Payment Policy" means the invoicing and payment policy. A copy of our current Invoicing and Payment Policy is attached as Exhibit B. • "Maintenance and Support Agreement" means the terms and conditions governing the provision of maintenance and support services to all of our customers. A copy of our current Maintenance and Support Agreement is attached as Exhibit C. • "Support Call Process" means the support call process applicable to all of our customers who have licensed the Tyler Software. A copy of our current Support Call Process is attached as Schedule 1 to Exhibit C. • "Third Party Terms" means, if any, the end user license agreement(s) or similar terms for the Third Party Software, as applicable and attached as Exhibit D. • "Third Party Hardware" means the third party hardware, if any, identified in the Investment Summary. • "Third Party Products" means the Third Party Software and Third Party Hardware. • "Third Party Software" means the third party software, if any, identified in the Investment Summary. • "Third Party Services" means the third party services, if any, identified in the Investment Summary. • "Tyler" means Tyler Technologies, Inc., a Delaware corporation, as successor -in -interest to New World Systems. • "Tyler Software" means our proprietary software, including any integrations, custom modifications, and/or other related interfaces identified in the Investment Summary and licensed by us to you through this Agreement. • "we", "us", "our" and similar terms mean Tyler. • "you" and similar terms mean Client. SECTION B — SOFTWARE LICENSE 1. License Grant and Restrictions. 1.1 We grant to you a license to use the Tyler Software for your internal business purposes only, in the scope of the internal business purposes disclosed to us as of the Effective Date. You may make copies of the Tyler Software for backup and testing purposes, so long as such copies are not used in production and the testing is for internal use only. Your rights to use the Tyler Software are perpetual but may be revoked if you do not comply with the terms of this Agreement. 1.2 The Documentation is licensed to you and may be used and copied by your employees for internal, non- commercial reference purposes only. 1.3 You may not: (a) transfer or assign the Tyler Software to a third party; (b) reverse engineer, decompile, or disassemble the Tyler Software; (c) rent, lease, lend, or provide commercial hosting services with the Tyler Software; or (d) publish or otherwise disclose the Tyler Software or Documentation to third parties. 1.4 The license terms in this Agreement apply to updates and enhancements we may provide to you or make available to you through your Maintenance and Support Agreement. 1.5 The right to transfer the Tyler Software to a replacement hardware system is included in your license. You will give us advance written notice of any such transfer and will pay us for any required or requested technical assistance from us associated with such transfer. 1.6 We reserve all rights not expressly granted to you in this Agreement. The Tyler Software and Documentation are protected by copyright and other intellectual property laws and treaties. We own the title, copyright, and other intellectual property rights in the Tyler Software and the Documentation. ••:;:•. tyler 2 115 of 483 The Tyler Software is licensed, not sold. 2. License Fees. You agree to pay us the license fees in the amounts set forth in the Investment Summary. Those amounts are payable in accordance with our Invoicing and Payment Policy. 3. Escrow. We maintain an escrow agreement with a third party under which we place the source code for each major release of the Tyler Software. You may be added as a beneficiary to the escrow agreement by completing a standard beneficiary enrollment form and paying the annual beneficiary fee set forth in the Investment Summary. You will be responsible for maintaining your ongoing status as a beneficiary, including payment of the then -current annual beneficiary fees. Release of source code for the Tyler Software is strictly governed by the terms of the escrow agreement. 4. Limited Warranty. We warrant that the Tyler Software will be without Defect(s) as long as you have a Maintenance and Support Agreement in effect. If the Tyler Software does not perform as warranted, we will use all reasonable efforts, consistent with industry standards, to cure the Defect as set forth in the Maintenance and Support Agreement. 5. Affiliated Organizations for the Tyler Software. 5.1 Access by Affiliated Organizations. We will permit you to grant each Affiliated Organization access to the Tyler Software hosted from your servers. You understand and agree that you are solely responsible for making the Tyler Software available to any Affiliated Organizations, and that we do not warrant, and are not responsible for, the performance of your servers or any Affiliated Organization's access thereto. 5.2 Application of this Agreement. Each Affiliated Organization must abide by the terms and conditions of this Agreement, and you are responsible for any breach hereof by an Affiliated Organization accessing the Tyler Software hosted from your servers. 5.3 Termination of Access of an Affiliated Organization. You agree to deny an Affiliated Organization's access to the Tyler Software upon written notice from us that the applicable Affiliated Organization has violated the terms of this Agreement. SECTION C — PROFESSIONAL SERVICES 1. Services. We will provide you the various implementation -related services itemized in the Investment Summary. 2. Professional Services Fees. You agree to pay us the professional services fees in the amounts set forth in the Investment Summary. Those amounts are payable in accordance with our Invoicing and Payment Policy. You acknowledge that the fees stated in the Investment Summary are good -faith estimates of the amount of time and materials required for your implementation. We will bill you the actual fees incurred based on the in -scope services provided to you. Any discrepancies in the total values set forth in the Investment Summary will be resolved by multiplying the applicable hourly rate by the quoted hours. 3. Additional Services. The Investment Summary contains, and the Statement of Work describes, the scope of services and related costs (including programming and/or interface estimates) required for the project based on our understanding of the specifications you supplied. If additional work is required, or if you use or request additional services, we will provide you with an addendum or change order, as applicable, outlining the costs for the additional work. The price quotes in the addendum or change order will be valid National City, CA LSA Agreement 110620.docx ••:;:•. tyler 3 116 of 483 for thirty (30) days from the date of the quote. 4. Cancellation. We make all reasonable efforts to schedule our personnel for travel, including arranging travel reservations, at least two (2) weeks in advance of commitments. Therefore, if you cancel services less than two (2) weeks in advance (other than for Force Majeure or breach by us), you will be liable for all (a) non- refundable expenses incurred by us on your behalf, and (b) daily fees associated with cancelled professional services if we are unable to reassign our personnel. We will make all reasonable efforts to reassign personnel in the event you cancel within two (2) weeks of scheduled commitments. 5. Services Warranty. We will perform the services in a professional, workmanlike manner, consistent with industry standards. In the event we provide services that do not conform to this warranty, we will re - perform such services at no additional cost to you. 6. Site Access and Requirements. At no cost to us, you agree to provide us with full and free access to your personnel, facilities, and equipment as may be reasonably necessary for us to provide implementation services, subject to any reasonable security protocols or other written policies provided to us as of the Effective Date, and thereafter as mutually agreed to by you and us. You further agree to provide a reasonably suitable environment, location, and space for the installation of the Tyler Software and any Third Party Products, including, without limitation, sufficient electrical circuits, cables, and other reasonably necessary items required for the installation and operation of the Tyler Software and any Third Party Products. 7. Client Assistance. You acknowledge that the implementation of the Tyler Software is a cooperative process requiring the time and resources of your personnel. You agree to use all reasonable efforts to cooperate with and assist us as may be reasonably required to meet the agreed upon project deadlines and other milestones for implementation. This cooperation includes at least working with us to schedule the implementation -related services outlined in this Agreement. We will not be liable for failure to meet any deadlines and milestones when such failure is due to Force Majeure or to the failure by your personnel to provide such cooperation and assistance (either through action or omission). SECTION D — MAINTENANCE AND SUPPORT This Agreement includes the period of free maintenance and support services identified in the Invoicing and Payment Policy. If you have purchased ongoing maintenance and support services, and continue to make timely payments for them according to our Invoicing and Payment Policy, we will provide you with maintenance and support services for the Tyler Software under the terms of our standard Maintenance and Support Agreement. If you have opted not to purchase ongoing maintenance and support services for the Tyler Software, the Maintenance and Support Agreement does not apply to you. Instead, you will only receive ongoing maintenance and support on the Tyler Software on a time and materials basis. In addition, you will: (i) receive the lowest priority under our Support Call Process; (ii) be required to purchase new releases of the Tyler Software, including fixes, enhancements and patches; (iii) be charged our then -current rates for support services, or such other rates that we may consider necessary to account for your lack of ongoing training on the Tyler Software; (iv) be charged for a minimum of two (2) hours of support services for every support call; and (v) not be granted access to the support website for the Tyler Software or the Tyler Community Forum. National City, CA LSA Agreement 110620.docx ••:;:•. tyler 4 117 of 483 National City, CA LSA Agreement 110620.docx SECTION E — THIRD PARTY PRODUCTS To the extent there are any Third Party Products set forth in the Investment Summary, the following terms and conditions will apply: 1. Third Party Hardware. We will sell and deliver onsite the Third Party Hardware, if you have purchased any, for the price set forth in the Investment Summary. Those amounts are payable in accordance with our Invoicing and Payment Policy. 2. Third Party Software. Upon payment in full of the Third Party Software license fees, you will receive a non- transferable license to use the Third Party Software and related documentation for your internal business purposes only. Your license rights to the Third Party Software will be governed by the Third Party Terms. 2.1 If the Developer charges a fee for future updates, releases, or other enhancements to the Third Party Software, you will be required to pay such additional future fee. 2.2 The right to transfer the Third Party Software to a replacement hardware system is governed by the Developer. You will give us advance written notice of any such transfer and will pay us for any required or requested technical assistance from us associated with such transfer. 3. Third Party Products Warranties. 3.1 We are authorized by each Developer to grant or transfer the licenses to the Third Party Software. 3.2 The Third Party Hardware will be new and unused, and upon payment in full, you will receive free and clear title to the Third Party Hardware. 3.3 You acknowledge that we are not the manufacturer of the Third Party Products. We do not warrant or guarantee the performance of the Third Party Products. However, we grant and pass through to you any warranty that we may receive from the Developer or supplier of the Third Party Products. 4. Third Party Services. If you have purchased Third Party Services, those services will be provided independent of Tyler by such third -party at the rates set forth in the Investment Summary and in accordance with our Invoicing and Payment Policy. 5. Maintenance. If you have a Maintenance and Support Agreement in effect, you may report defects and other issues related to the Third Party Software directly to us, and we will (a) directly address the defect or issue, to the extent it relates to our interface with the Third Party Software; and/or (b) facilitate resolution with the Developer, unless that Developer requires that you have a separate, direct maintenance agreement in effect with that Developer. In all events, if you do not have a Maintenance and Support Agreement in effect with us, you will be responsible for resolving defects and other issues related to the Third Party Software directly with the Developer. SECTION F— INVOICING AND PAYMENT; INVOICE DISPUTES 1. Invoicing and Payment. We will invoice you for all fees set forth in the Investment Summary per our Invoicing and Payment Policy, subject to Section F(2). 2. Invoice Disputes. If you believe any delivered software or service does not conform to the warranties in this Agreement, you will provide us with written notice within thirty (30) days of your receipt of the applicable ••:;:•. tyler 5 118 of 483 invoice. The written notice must contain reasonable detail of the issues you contend are in dispute so that we can confirm the issue and respond to your notice with either a justification of the invoice, an adjustment to the invoice, or a proposal addressing the issues presented in your notice. We will work with you as may be necessary to develop an action plan that outlines reasonable steps to be taken by each of us to resolve any issues presented in your notice. You may withhold payment of the amount(s) actually in dispute, and only those amounts, until we complete the action items outlined in the plan. If we are unable to complete the action items outlined in the action plan because of your failure to complete the items agreed to be done by you, then you will remit full payment of the invoice. We reserve the right to suspend delivery of all services, including maintenance and support services, if you fail to pay an invoice not disputed as described above within fifteen (15) days of notice of our intent to do so. SECTION G — TERMINATION 1. For Cause. If you believe we have materially breached this Agreement, you will invoke the Dispute Resolution clause set forth in Section 1(3). You may terminate this Agreement for cause in the event we do not cure, or create a mutually agreeable action plan to address, a material breach of this Agreement within the thirty (30) day window set forth in Section 1(3). In the event of termination for cause, you will pay us for all undisputed fees and expenses related to the software, products, and/or services you have received, or we have incurred or delivered, prior to the effective date of termination. 2. Lack of Appropriations. If you should not appropriate or otherwise receive funds sufficient to purchase, lease, operate, or maintain the software or services set forth in this Agreement, you may unilaterally terminate this Agreement effective on the final day of the fiscal year through which you have funding. You will make every effort to give us at least thirty (30) days written notice prior to a termination for lack of appropriations. In the event of termination due to a lack of appropriations, you will pay us for all undisputed fees and expenses related to the software and/or services you have received, or we have incurred or delivered, prior to the effective date of termination. Any disputed fees and expenses must have been submitted to the Invoice Dispute process set forth in Section F(2) at the time of termination in order to be withheld at termination. You will not be entitled to a refund or offset of previously paid license and other fees. 3. Force Majeure. Neither party will be liable, you or we may terminate this Agreement if a Force Majeure event suspends performance of scheduled tasks for a period of forty-five (45) days or more. In the event of termination due to Force Majeure, you will pay us for all undisputed fees and expenses related to the software and/or services you have received, or we have incurred or delivered, prior to the effective date of termination. Any disputed fees and expenses must have been submitted to the Invoice Dispute process set forth in Section F(2) at the time of termination in order to be withheld at termination. You will not be entitled to a refund or offset of previously paid license and other fees. SECTION H — INDEMNIFICATION, LIMITATION OF LIABILITY AND INSURANCE 1. Intellectual Property Infringement Indemnification. 1.1 We will defend you against any third party claim(s) that the Tyler Software or Documentation infringes that third party's patent, copyright, or trademark, or misappropriates its trade secrets, and will pay the amount of any resulting adverse final judgment (or settlement to which we consent). You must notify us promptly in writing of the claim and give us sole control over its defense or settlement. You agree to provide us with reasonable assistance, cooperation, and information in defending the claim at our expense. National City, CA LSA Agreement 110620.docx ••:;:•. tyler 6 119 of 483 1.2 Our obligations under this Section H(1) will not apply to the extent the claim or adverse final judgment is based on your: (a) use of a previous version of the Tyler Software and the claim would have been avoided had you installed and used the current version of the Tyler Software, and we provided notice of that requirement to you; (b) combining the Tyler Software with any product or device not provided, contemplated, or approved by us; (c) altering or modifying the Tyler Software, including any modification by third parties at your direction or otherwise permitted by you; (d) use of the Tyler Software in contradiction of this Agreement, including with non -licensed third parties; or (e) willful infringement, including use of the Tyler Software after we notify you to discontinue use due to such a claim. 1.3 If we receive information concerning an infringement or misappropriation claim related to the Tyler Software, we may, at our expense and without obligation to do so, either: (a) procure for you the right to continue its use; (b) modify it to make it non -infringing; or (c) replace it with a functional equivalent, in which case you will stop running the allegedly infringing Tyler Software immediately. Alternatively, we may decide to litigate the claim to judgment, in which case you may continue to use the Tyler Software consistent with the terms of this Agreement. 1.4 If an infringement or misappropriation claim is fully litigated and your use of the Tyler Software is enjoined by a court of competent jurisdiction, in addition to paying any adverse final judgment (or settlement to which we consent), we will, at our option, either: (a) procure the right to continue its use; (b) modify it to make it non -infringing; (c) replace it with a functional equivalent; or (d) terminate your license and refund the license fees paid for the infringing Tyler Software, as depreciated on a straight- line basis measured over seven (7) years from the Effective Date. We will pursue those options in the order listed herein. This section provides your exclusive remedy for third party copyright, patent, or trademark infringement and trade secret misappropriation claims. 2. General Indemnification. 2.1 We will indemnify and hold harmless you and your agents, officials, and employees from and against any and all third -party claims, losses, liabilities, damages, costs, and expenses (including reasonable attorney's fees and costs) for (a) personal injury or property damage to the extent caused by our negligence or willful misconduct; or (b) our violation of a law applicable to our performance under this Agreement. You must notify us promptly in writing of the claim and give us sole control over its defense or settlement. You agree to provide us with reasonable assistance, cooperation, and information in defending the claim at our expense. 2.2 To the extent permitted by applicable law, you will indemnify and hold harmless us and our agents, officials, and employees from and against any and all third -party claims, losses, liabilities, damages, costs, and expenses (including reasonable attorney's fees and costs) for personal injury or property damage to the extent caused by your negligence or willful misconduct; or (b) your violation of a law applicable to your performance under this Agreement. We will notify you promptly in writing of the claim and will give you sole control over its defense or settlement. We agree to provide you with reasonable assistance, cooperation, and information in defending the claim at your expense. 3. DISCLAIMER. EXCEPT FOR THE EXPRESS WARRANTIES PROVIDED IN THIS AGREEMENT AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, WE HEREBY DISCLAIM ALL OTHER WARRANTIES AND CONDITIONS, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES, DUTIES, OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. National City, CA LSA Agreement 110620.docx ••:;:•. tyler 7 120 of 483 4. LIMITATION OF LIABILITY. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, OUR LIABILITY FOR DAMAGES ARISING OUT OF THIS AGREEMENT, WHETHER BASED ON A THEORY OF CONTRACT OR TORT, INCLUDING NEGLIGENCE AND STRICT LIABILITY, SHALL BE LIMITED TO YOUR ACTUAL DIRECT DAMAGES, NOT TO EXCEED (A) PRIOR TO FORMAL TRANSITION TO MAINTENANCE AND SUPPORT, THE TOTAL ONE-TIME FEES SET FORTH IN THE INVESTMENT SUMMARY; OR (B) AFTER FORMAL TRANSITION TO MAINTENANCE AND SUPPORT, THE THEN -CURRENT ANNUAL MAINTENANCE AND SUPPORT FEE. THE PARTIES ACKNOWLEDGE AND AGREE THAT THE PRICES SET FORTH IN THIS AGREEMENT ARE SET IN RELIANCE UPON THIS LIMITATION OF LIABILITY AND TO THE MAXIMUM EXTENT ALLOWED UNDER APPLICABLE LAW, THE EXCLUSION OF CERTAIN DAMAGES, AND EACH SHALL APPLY REGARDLESS OF THE FAILURE OF AN ESSENTIAL PURPOSE OF ANY REMEDY. THE FOREGOING LIMITATION OF LIABILITY SHALL NOT APPLY TO CLAIMS THAT ARE SUBJECT TO SECTIONS H(1) AND H(2). 5. EXCLUSION OF CERTAIN DAMAGES. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL WE BE LIABLE FOR ANY SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES WHATSOEVER, EVEN IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 6. Insurance. During the course of performing services under this Agreement, we agree to maintain the following levels of insurance: (a) Commercial General Liability of at least $1,000,000; (b) Automobile Liability of at least $1,000,000; (c) Professional Liability of at least $1,000,000; (d) Workers Compensation complying with applicable statutory requirements; and (e) Excess/Umbrella Liability of at least $5,000,000. We will add you as an additional insured to our Commercial General Liability and Automobile Liability policies, which will automatically add you as an additional insured to our Excess/Umbrella Liability policy as well. We will provide you with copies of certificates of insurance upon your written request. SECTION I — GENERAL TERMS AND CONDITIONS 1. Additional Products and Services. You may purchase additional products and services at the rates set forth in the Investment Summary for twelve (12) months from the Effective Date, and thereafter at our then - current list price, by executing a mutually agreed addendum. If no rate is provided in the Investment Summary, or those twelve (12) months have expired, you may purchase additional products and services at our then -current list price, also by executing a mutually agreed addendum. The terms of this Agreement will control any such additional purchase(s), unless otherwise specifically provided in the addendum. 2. Optional Items. Pricing for any listed optional products and services in the Investment Summary will be valid for twelve (12) months from the Effective Date. 3. Dispute Resolution. You agree to provide us with written notice within thirty (30) days of becoming aware of a dispute. You agree to cooperate with us in trying to reasonably resolve all disputes, including, if requested by either party, appointing a senior representative to meet and engage in good faith negotiations with our appointed senior representative. Senior representatives will convene within thirty (30) days of the written dispute notice, unless otherwise agreed. All meetings and discussions between senior representatives will be deemed confidential settlement discussions not subject to disclosure under Federal Rule of Evidence 408 or any similar applicable state rule. If we fail to resolve the dispute, then the parties shall participate in non -binding mediation in an effort to resolve the dispute. If the dispute remains unresolved after mediation, then either of us may assert our respective rights and remedies in a court of competent jurisdiction. Nothing in this section shall prevent you or us from seeking necessary injunctive relief during the dispute resolution procedures. 4. Taxes. The fees in the Investment Summary do not include any taxes, including, without limitation, sales, use, or excise tax. If you are a tax-exempt entity, you agree to provide us with a tax-exempt certificate. • e& Vier National City, CA LSA Agreement 110620.docx •: •� 8 121 of 483 National City, CA LSA Agreement 110620.docx Otherwise, we will pay all applicable taxes to the proper authorities and you will reimburse us for such taxes. If you have a valid direct -pay permit, you agree to provide us with a copy. For clarity, we are responsible for paying our income taxes, both federal and state, as applicable, arising from our performance of this Agreement. 5. Nondiscrimination. We will not discriminate against any person employed or applying for employment concerning the performance of our responsibilities under this Agreement. This discrimination prohibition will apply to all matters of initial employment, tenure, and terms of employment, or otherwise with respect to any matter directly or indirectly relating to employment concerning race, color, religion, national origin, age, sex, sexual orientation, ancestry, disability that is unrelated to the individual's ability to perform the duties of a particular job or position, height, weight, marital status, or political affiliation. We will post, where appropriate, all notices related to nondiscrimination as may be required by applicable law. 6. E-Verify. We have complied, and will comply, with the E-Verify procedures administered by the U.S. Citizenship and Immigration Services Verification Division for all of our employees assigned to your project. 7. Subcontractors. We will not subcontract any services under this Agreement without your prior written consent, not to be unreasonably withheld. 8. Binding Effect; No Assignment. This Agreement shall be binding on, and shall be for the benefit of, either your or our successor(s) or permitted assign(s). Neither party may assign this Agreement without the prior written consent of the other party; provided, however, your consent is not required for an assignment by us as a result of a corporate reorganization, merger, acquisition, or purchase of substantially all of our assets. 9. Force Majeure. Except for your payment obligations, neither party will be liable for delays in performing its obligations under this Agreement to the extent that the delay is caused by Force Majeure; provided, however, that within ten (10) business days of the Force Majeure event, the party whose performance is delayed provides the other party with written notice explaining the cause and extent thereof, as well as a request for a reasonable time extension equal to the estimated duration of the Force Majeure event. 10. No Intended Third Party Beneficiaries. This Agreement is entered into solely for the benefit of you and us. No third party will be deemed a beneficiary of this Agreement, and no third party will have the right to make any claim or assert any right under this Agreement. This provision does not affect the rights of third parties under any Third Party Terms. 11. Entire Agreement; Amendment. This Agreement represents the entire agreement between you and us with respect to the subject matter hereof, and supersedes any prior agreements, understandings, and representations, whether written, oral, expressed, implied, or statutory. Purchase orders submitted by you, if any, are for your internal administrative purposes only, and the terms and conditions contained in those purchase orders will have no force or effect. This Agreement may only be modified by a written amendment signed by an authorized representative of each party. 12. Severability. If any term or provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement will be considered valid and enforceable to the fullest extent permitted by law. 13. No Waiver. In the event that the terms and conditions of this Agreement are not strictly enforced by either party, such non -enforcement will not act as or be deemed to act as a waiver or modification of this Agreement, nor will such non -enforcement prevent such party from enforcing each and every term of this Agreement thereafter. 14. Independent Contractor. We are an independent contractor for all purposes under this Agreement. ••:;:•. tyler 9 122 of 483 15. Notices. All notices or communications required or permitted as a part of this Agreement, such as notice of an alleged material breach for a termination for cause or a dispute that must be submitted to dispute resolution, must be in writing and will be deemed delivered upon the earlier of the following: (a) actual receipt by the receiving party; (b) upon receipt by sender of a certified mail, return receipt signed by an employee or agent of the receiving party; (c) upon receipt by sender of proof of email delivery; or (d) if not actually received, five (5) days after deposit with the United States Postal Service authorized mail center with proper postage (certified mail, return receipt requested) affixed and addressed to the other party at the address set forth on the signature page hereto or such other address as the party may have designated by proper notice. The consequences for the failure to receive a notice due to improper notification by the intended receiving party of a change in address will be borne by the intended receiving party. 16. Client Lists. You agree that we may identify you by name in client lists, marketing presentations, and promotional materials. 17. Confidentiality. Both parties recognize that their respective employees and agents, in the course of performance of this Agreement, may be exposed to confidential information and that disclosure of such information could violate rights to private individuals and entities, including the parties. Confidential information is nonpublic information that a reasonable person would believe to be confidential and includes, without limitation, personal identifying information (e.g., social security numbers) and trade secrets, each as defined by applicable state law. Each party agrees that it will not disclose any confidential information of the other party and further agrees to take all reasonable and appropriate action to prevent such disclosure by its employees or agents. The confidentiality covenants contained herein will survive the termination or cancellation of this Agreement. This obligation of confidentiality will not apply to information that: (a) is in the public domain, either at the time of disclosure or afterwards, except by breach of this Agreement by a party or its employees or agents; (b) a party can establish by reasonable proof was in that party's possession at the time of initial disclosure; (c) a party receives from a third party who has a right to disclose it to the receiving party; or (d) is the subject of a legitimate disclosure request under the open records laws or similar applicable public disclosure laws governing this Agreement; provided, however, that in the event you receive an open records or other similar applicable request, you will give us prompt notice and otherwise perform the functions required by applicable law. 18. Business License. In the event a local business license is required for us to perform services hereunder, you will promptly notify us and provide us with the necessary paperwork and/or contact information so that we may timely obtain such license. 19. Governing Law. This Agreement will be governed by and construed in accordance with the laws of your state of domicile, without regard to its rules on conflicts of law. 20. Multiple Originals and Authorized Signatures. This Agreement may be executed in multiple originals, any of which will be independently treated as an original document. Any electronic, faxed, scanned, photocopied, or similarly reproduced signature on this Agreement or any amendment hereto will be deemed an original signature and will be fully enforceable as if an original signature. Each party represents to the other that the signatory set forth below is duly authorized to bind that party to this Agreement. 21. Cooperative Procurement. To the maximum extent permitted by applicable law, we agree that this Agreement may be used as a cooperative procurement vehicle by eligible jurisdictions. We reserve the right '.f.. tyler National City, CA LSA Agreement 110620.docx •• 10 123 of 483 to negotiate and customize the terms and conditions set forth herein, including but not limited to pricing, to the scope and circumstances of that cooperative procurement. 22. Contract Documents. This Agreement includes the following exhibits: Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Investment Summary Invoicing and Payment Policy Schedule 1: Business Travel Policy Maintenance and Support Agreement Schedule 1: Support Call Process Third Party End User License Agreement(s) Implementation and Training Support Services Schedule 1: Data File Conversion Assistance Schedule 2: Customer Requested Standard Software Enhancement/Modifications And/or Custom Software Additional Terms for New World Public Safety and Brazos Hosted Components Schedule 1: Service Level Agreement for Hosted Components IN WITNESS WHEREOF, a duly authorized representative of each party has executed this Agreement as of the date(s) set forth below. Tyler Technologies, Inc. City of National City, CA By: Bryan Proctor (Feb 25, 2021 15:56 EST) Name: Bryan Proctor Title: President, Public Safety Division Date: February 25, 2021 Address for Notices: Tyler Technologies, Inc. One Tyler Drive Yarmouth, ME 04096 Attention: Chief Legal Officer National City, CA LSA Agreement 110620.docx By: Name: Title: Date: Address for Notices: National City Police Department 1200 national City Blvd. National City, CA 91950-4302 Attention: ••:;:•. tyler 11 124 of 483 • ••:•:•• tyler • • technologies Exhibit A Investment Summary The following Investment Summary details the software, products, and services to be delivered by us to you under the Agreement. This Investment Summary is effective as of the Effective Date. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement. Investment Summary prepared in accordance with Sourcewell Contract #090320-tti REMAINDER OF PAGE INTENTIONALLY LEFT BLANK National City, CA LSA Agreement 110620.docx ••:;:•. tyler 12 125 of 483 • `•:?!. new world • a tyler pool :_ afety solution Sales Quotation For National City Police Department 1200 National City Blvd National City , CA 91950-4302 Phone: +1 (619) 336-4400 ler Software Description Computer Aided Dispatch Quoted By: Rob Simonds Dale: 11/6/2020 Quote Expiration: 12118/2020 Quote Name: National City CAD/Mobile Quote Number: 2020-31128-2 Quote Description: CAD.Mobile Year One License Discount License Total Maintenance New World Enterprise Single Jurisdiction Law Enforcement CAD BOLOS CAD Auto Routing CAD AVL Service Vehicle Rotation (Wrecker, Ambulance) Unit Management Web CAD Monitor Tyler CAD to Tyler CAD Interface E-911 Interface CAD NCIC Interface CAD CFS (xml) Export Interface Telestaff Interface $47,800 $7,200 $7,200 $7,200 $7,200 $9,600 $16,000 $0 $7,200 $13,600 $14,400 $14,400 $23,900 $3,600 $3,600 $3,600 $3,600 54,800 $8,000 $0 $3,600 $6, 800 $7,200 $7,200 $23,900 $3,600 $3,600 $3,600 $3,600 $4,800 $8,000 $0 $3,600 $6,800 $7,200 $7,200 $5,019 $756 $756 $756 $756 $1,008 $1,680 $0 $756 $1,428 $1,512 $1,512 Law Enforcement Records Management System Ticket Writer Interface (Supports Brazos) SO $0 $0 so Fire Records Management System New World Fire Records Software/Pre-Plans Only $14,800 $7,400 $7,400 $1,554 Mobile New World Mobile Server MCT Ticket Writer Interface (supports Brazos) Law Enforcement Mobile Site License (85 ) ShieldForce LE Dispatch 2020-31128-2 - CAD.Mobile ••::•. tyler National City, CA LSA Agreement l 10620.docx •• $68,000 $0 $46,750 CONFIDENTIAL 13 $34,000 $0 $0 $34,000 $0 $46,750 $7,140 $0 $9,818 1 of 6 126 of 483 LE Dispatch[Messaging[StateJNCIC Drivers License Mag Stripe ReaderlBarcode Reader Interface Mugshot Image Download LE In -Car Mapping / AVL LE In -Car Routing other Software CAD Data Mart / Includes 2 users $3,200 $1,600 Brazos Device Level Interface: New World Mobile Interface: Tyler Odyssey Court Case Mgmt System Task: Field Interview Task: CA AB053 Demographic Profiling Interface: Motorola NET RMS Records Mgmt System eCitation - Brazos Rapid Extension Framework - PDA (60 ) AnnuallSaaS S0 $0 $0 $0 $3,250 $650 $0 $0 S3,250 $650 $45,000 $9,000 Sub -Total: $336,050 $129,200 Less Discount $129,200 TOTAL: $206,850 $1,600 $0 $0 $2,600 $0 $2,600 $36,000 $206,850 $206,850 S336 $0 $0 $546 $0 $546 $7,560 $43,439 $43,439 so Description Quanity Fee Discount Annual MOD: Spatial Mapping Report and GeoLocation Brazos Ad hoc Reporting Mobility Hosting Annual Fee Brazos Hosting Fee TOTAL: Services $2 500 $1,250 $3,000 $3, 60 5 so so so $0 $2,500 $1,250 $3,000 $3,605 $10,355 Description Quantity Unit Price Discount Total Project Management High Availability System Assurance and Software Installation (2 environments) Mobility Implementation GIS Implementation NCIC Installation Decision Support Software Implementation Web CAD Monitor Installation Tyler CAD to Tyler CAD Interface Installation E-911 Interface Installation 2020-31126-2 - CAD. Motile ••::•. tyler National City, CA LSA Agreement 110620.docx •• CONFIOEITIAI_ 14 $50,560 $20,880 $2,320 $22,620 $14,500 $4,350 $1,160 $0 $1,160 $0 $a $0 $0 $0 $0 $0 $0 $0 $50,560 $20,880 $2,320 $22,620 $14,500 $4,350 $1,160 $0 $1,160 2 of 6 127 of 483 CAD Export Installation Tielestaff Interface Installation Law Enforcement CAD Conf guraiion CAD Training (10 users ea.) CAD Go -Live Ticket Writer Interface (Supports Brazos) Installation Law Enforcement Mobile Messaging Configuration Law Enforcement Mobile Messaging Training (includes 10 trainers ea.) Law Enforcement Mobile Messaging Go -Live Fire Pre -Plans Installation Fee Custom Interface to SDLaw Wants and Warrants Custom Interface to NetRMS Custom Interface to ARJ IS Brazos Set Up & Config Brazos Project Mgmt (plus per diem as needed if not remote) Brazos Training Brazos Device Level Interface: Set Up & Confguration Brazos Odyssey Interface: Set Up & Configuration Conversions TOTAL: Third Pa Hardware Software and Services 1 $2,320 1 $1,160 1 $8,700 2 $4,350 1 $13,050 t $0 1 $4,350 1 $4,350 1 $8,700 1 $1,160 1 $28,800 1 $14,400 1 $14,400 1 $14,500 1 $3,000 1 $2,000 1 $0 1 $0 $0 $2,320 $0 $1,160 S0 $8,700 $0 $8,700 $0 $13,050 $0 $0 $0 $4,350 $0 $4,350 $0 $8,700 $0 $1,160 $0 $28,800 $0 $14,400 $0 $14,400 $0 $14,500 $0 $3,000 $0 $2,000 $0 $0 $0 $0 $23,400 $270,540 Description Year One Quantity Unit Price Total Unit Maintenance Maintenance Embedded Third Party Software Geo-File Maintenance Software (AreGIS for Desktop Standard) / per Workstation Red Hat Enterprise Linux Server (3-year subscription) 207803-001 1 Brother, Warranty, Rugged Jet, 3 year (Assure Premier Service; initial service plus three additional years). Lantronix UDS-1100 LB3690 / Brother, PocketJet, Rugged Jet, Vehicle Adapter - Cigarette Plug, 3 ft. LB3834 / Brother, Pocketjet, Rugged Jet, AC Charger RDM02U5 / Brother, Rugged. Jet, Paper, Thermal, premium, 36 rolls per case RJ42300L l Brother, Printer, Rugged Jet 4, Bluetooth 3rd Party Hardware Snub-Total- 3rd Party Software Sub-Total- 1 1 15 $16,500 $6,000 $2,500 $152 1 S175 15 $23 15 $50 15 a142 $16,500 $6,000 $2, 500 $2,280 $175 $345 $750 $2,130 15 $569 $8,535 $14,215 $25,000 2020-31128-2 - CAD.I Mobile CONFIDENTIAL ••:% Vier National City, CA LSA Agreement 110620.docx •• 15 $3,465 $1,260 $0 $0 $0 $0 $0 $0 $0 $3,465 $1,260 $o $0 $0 $0 $0 $0 $0 $0 $4,725 3 of 6 128 of 483 Less Discount. TOTAL: S umma ry Total Tyler Software Total Annual Fees Total Tyler Services Total Other Costs Total Third Party Hardware, Software and Services Travel and Living Expenses Summary Total Detailed Breakdown of Conversions Included in Summa Total One Time Fees $206,850 $270,540 $0 $39,215 $46,000 $562,605 S4, 725 $39,215 $0 Recurring Fees $43,439 $10,355 54,725 $58.519 Description Quantity Und Price Discount Total Data File Conversion Data Conversion Analysis and Assessment Base Conversion (One Source); Master Files including Master Name (Jackets); Addresses; and Narratives 1 Includes one source of data. Does not include everything the Name is linked to (e.g. tickets, arrests, etc.) Address Re -Verification 2020-311213-2 - OA{]_Modle ••::•. tyler National City, CA LSA Agreement 110620.docx •• TOTAL: 1 1 $3,000 $-15,000 $5.400 $0 $0 $3,000 $15,000 $0 $5,400 $23,400 CONFIDENTIAL 4 of h 16 129 of 483 Assumptions Personal Computers must meet the minimum hardware requirements for New World products_ Microsoft Windows 718.1110 32164 bit or later is required for all client machines_ Windows Server 201212016 and SQL Server 201212014/2016 are required for the Application and Database Server(s). New World product requires Microsoft Windows Server 201212016 and SQL Server 201212016, including required Client Access Licenses (CALs) for applicable Microsoft products. Servers must meet minimum hardware requirements provided by Tyler. The supported Microsoft operating system and SQL versions are specific to Tyler's release versions. New World product requires Microsoft Excel or Windows Search 4.0 for document searching functionality; Microsoft Word is required on the application server for report formatting. Tyler recommends a 100/1000MB (GB) Ethernet network for the local area network. Wide area network requirements vary based on system configuration, Tyler will provide further consultation for this environment. Does not include servers, workstations, or any required third -party hardware or software unless specified in this Investment Summary. Client is responsible for any third -party support_ Licensed Software, and third -party software embedded therein, if any, will be delivered in a machine readable form to Client via an agreed upon network connection. Any taxes or fees imposed are the responsibility of the purchaser and will be remitted when imposed_ Tyler's GIS implementation services are to assist the Client in preparing the required GIS data for use with the Licensed New World Software. Depending upon the Licensed Software the Client at a minimum will be required to provide an accurate street centerline layer and the appropriate polygon layers needed for Unit Recommendations and Run Cards in an industry standard Esri file format (Personal Geodatabase, File Geodatabase, Shape Files). Client is responsible for having clearly defined boundaries for Police Beats, EMS Districts and Fire Quadrants. If necessary Tyler will assist Client in creating the necessary polygon layers (Police Beats, EMS Districts and Fire Quadrants) for Unit Recommendations and Run Cards. Tyler is nol responsible for the accuracy of or any ongoing maintenance of the GIS data used within the Licensed New World Software. Client is responsible for any ongoing annual maintenance on third -party products, and is advised to contact the third -party vendor to ensure understanding of and compliance with all maintenance requirements All Tyler Clients are required to use Esri's ArcGIS Suite to maintain GIS data. All maintenance, training and ongoing support of this product will be contracted with and conducted by Esri. Maintenance for Esri's ArcGIS suite of products that are used for maintaining Client's GIS data will be contracted by Client separately with Esri. CAD Maintenance includes 2417 Support When Custom interface is included, Custom interface will be operational with existing third -party software. Any subsequent changes to third -party applications may require additional services. When StateINCIC is included, Client is responsible for obtaining the necessary State approval and any non -Tyler hardware and software_ Includes state -specific standard forms developed by Tyler. Additional forms can be provided for an additional fee_ Unless a Workstation License is included, New World CAD includes 8 licenses. ••::•. tyler National City, CA LSA Agreement 110620.docx •• e - 17 130 of 483 • •••'•••••• tyler • • technologies Exhibit B Invoicing and Payment Policy We will provide you with the software and services set forth in the Investment Summary. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement. Invoicing: We will invoice you for the applicable license and services fees in the Investment Summary as set forth below. Your rights to dispute any invoice are set forth in the Agreement. 1. Tyler Software. 1.1 License Fees: License fees will be invoiced 100% on the Effective Date. 1.2 Maintenance and Support Fees (including Esri and Embedded Third Party Software): Year 1 maintenance and support fees are waived one (1) year from the Effective Date. Year 2 maintenance and support fees, at the rate listed in the Investment Summary, are payable one year from the Effective Date. Subsequent maintenance and support fees, at our then -current rates, are invoiced annually in advance of each anniversary thereof. 1.3 Subscription Fees: Your initial 3-year subscription fees for RedHat, as identified in Exhibit 1, will be invoiced when we make the product available to you. Subsequent subscription fees for Red Hat are renewable directly through Red Hat Support (renewals@redhat.com). 2. Professional Services. 2.1 Implementation and Other Professional Services (including training): Implementation and other professional services (including training) are billed and invoiced as delivered, at the rates set forth in the Investment Summary. 2.2 Conversions: Fixed -fee conversions are invoiced 50% upon acceptance of the Conversion Analysis Document, and 50% upon initial delivery of converted data into Live/Production environment, by conversion option. Where conversions are quoted as estimated, we will bill you the actual services delivered on a time and materials basis. 2.3 Requested Custom Software Interfaces: Requested custom software interfaces are invoiced 100% upon initial delivery of the interface. 2.4 Other Fixed Price Services: Except as otherwise provided, other fixed price services are invoiced upon complete delivery of the service. For the avoidance of doubt, where "Project Planning Services" are provided, payment will be due upon delivery of the Implementation Planning National City, CA LSA Agreement 110620.docx ••:;:•. tyler 18 131 of 483 document. Dedicated Project Management services, if any, will be billed monthly in arrears, beginning on the tenth day of the month immediately following initiation of project planning. 3. Other Services and Fees. 3.1 Brazos Hosting Fees: Hosting fees for the Brazos software are invoiced annually in advance, beginning on the Effective Date. Year 1 fees are at the rates set forth in the Investment Summary. Subsequent annual fees will be at our then -current rates. 3.2 New World Hosting Fees: Hosting Fees for the Tyler Software identified on the Investment Summary are invoiced annually in advance on the Effective Date and will renew automatically for additional one (1) year terms at our then -current Hosting Services fee, unless terminated in writing by either party at least thirty (30) days prior to the end of the then -current term. 4. Third Party Products. 4.1 Third Party Software License Fees: License fees for Third Party Software, if any, are invoiced when we make it available to you for downloading. 4.2 Third Party Software Maintenance (excluding Esri and Embedded Third Party Software): The first year maintenance fees for the Third Party Software, if any, is invoiced when we make that Third Party Software available to you for downloading. 4.3 Third Party Hardware: Third Party Hardware costs, if any, are invoiced upon delivery. 4.4 Third Party Services: Fees for Third Party Services, if any, are invoiced as delivered, along with applicable expenses, at the rates set forth in the Investment Summary. 5. Expenses. The service rates in the Investment Summary include travel expenses for Tyler delivered services. Expenses will be billed as incurred and only in accordance with our then -current Business Travel Policy, plus a 10% travel agency processing fee. Our current Business Travel Policy is attached to this Exhibit B at Schedule 1. Copies of receipts will be provided upon request; we reserve the right to charge you an administrative fee depending on the extent of your requests. Receipts for miscellaneous items less than twenty-five dollars and mileage logs are not available. Payment. Payment for undisputed invoices is due within forty-five (45) days of the invoice date. We prefer to receive payments electronically. Our electronic payment information is available by contacting AR@tylertech.com. National City, CA LSA Agreement 110620.docx ••:;:•. tyler 19 132 of 483 • •••tyler :S. • technologies Exhibit B Schedule 1 Business Travel Policy 1. Air Travel A. Reservations & Tickets The Travel Management Company (TMC) used by Tyler will provide an employee with a direct flight within two hours before or after the requested departure time, assuming that flight does not add more than three hours to the employee's total trip duration and the fare is within $100 (each way) of the lowest logical fare. If a net savings of $200 or more (each way) is possible through a connecting flight that is within two hours before or after the requested departure time and that does not add more than three hours to the employee's total trip duration, the connecting flight should be accepted. Employees are encouraged to make advanced reservations to take full advantage of discount opportunities. Employees should use all reasonable efforts to make travel arrangements at least two (2) weeks in advance of commitments. A seven (7) day advance booking requirement is mandatory. When booking less than seven (7) days in advance, management approval will be required. Except in the case of international travel where a segment of continuous air travel is six (6) or more consecutive hours in length, only economy or coach class seating is reimbursable. Employees shall not be reimbursed for "Basic Economy Fares" because these fares are non-refundable and have many restrictions that outweigh the cost -savings. B. Baggage Fees Reimbursement of personal baggage charges are based on trip duration as follows: • Up to five (5) days = one (1) checked bag • Six (6) or more days = two (2) checked bags Baggage fees for sports equipment are not reimbursable. National City, CA LSA Agreement 110620.docx ••:;:•. tyler 20 133 of 483 2. Ground Transportation A. Private Automobile Mileage Allowance — Business use of an employee's private automobile will be reimbursed at the current IRS allowable rate, plus out of pocket costs for tolls and parking. Mileage will be calculated by using the employee's office as the starting and ending point, in compliance with IRS regulations. Employees who have been designated a home office should calculate miles from their home. B. Rental Car Employees are authorized to rent cars only in conjunction with air travel when cost, convenience, and the specific situation reasonably require their use. When renting a car for Tyler business, employees should select a "mid -size" or "intermediate" car. "Full" size cars may be rented when three or more employees are traveling together. Tyler carries leased vehicle coverage for business car rentals; except for employees traveling to Alaska and internationally (excluding Canada), additional insurance on the rental agreement should be declined. C. Public Transportation Taxi or airport limousine services may be considered when traveling in and around cities or to and from airports when less expensive means of transportation are unavailable or impractical. The actual fare plus a reasonable tip (15-18%) are reimbursable. In the case of a free hotel shuttle to the airport, tips are included in the per diem rates and will not be reimbursed separately. D. Parking & Tolls When parking at the airport, employees must use longer term parking areas that are measured in days as opposed to hours. Park and fly options located near some airports may also be used. For extended trips that would result in excessive parking charges, public transportation to/from the airport should be considered. Tolls will be reimbursed when receipts are presented. 3. Lodging Tyler's TMC will select hotel chains that are well established, reasonable in price, and conveniently located in relation to the traveler's work assignment. Typical hotel chains include Courtyard, Fairfield Inn, Hampton Inn, and Holiday Inn Express. If the employee has a discount rate with a local hotel, the hotel reservation should note that discount and the employee should confirm the lower rate with the hotel upon arrival. Employee memberships in travel clubs such as AAA should be noted in their travel profiles so that the employee can take advantage of any lower club rates. "No shows" or cancellation fees are not reimbursable if the employee does not comply with the hotel's cancellation policy. Tips for maids and other hotel staff are included in the per diem rate and are not reimbursed separately. National City, CA LSA Agreement 110620.docx ••:;:•. tyler 21 134 of 483 Employees are not authorized to reserve non-traditional short-term lodging, such as Airbnb, VRBO, and HomeAway. Employees who elect to make such reservations shall not be reimbursed. 4. Meals and Incidental Expenses Employee meals and incidental expenses while on travel status within the continental U.S. are in accordance with the federal per diem rates published by the General Services Administration. Incidental expenses include tips to maids, hotel staff, and shuttle drivers and other minor travel expenses. Per diem rates are available at www.gsa.gov/perdiem. Per diem for Alaska, Hawaii, U.S. protectorates and international destinations are provided separately by the Department of Defense and will be determined as required. A. Overnight Travel For each full day of travel, all three meals are reimbursable. Per diems on the first and last day of a trip are governed as set forth below. Departure Day Depart before 12:00 noon Depart after 12:00 noon Return Day Lunch and dinner Dinner Return before 12:00 noon Breakfast Return between 12:00 noon & 7:00 p.m. Breakfast and lunch Return after 7:00 p.m.* Breakfast, lunch and dinner *7:00 p.m. is defined as direct travel time and does not include time taken to stop for dinner. The reimbursement rates for individual meals are calculated as a percentage of the full day per diem as follows: • Breakfast 15% • Lunch 25% • Dinner 60% B. Same Day Travel Employees traveling at least 100 miles to a site and returning in the same day are eligible to claim lunch on an expense report. Employees on same day travel status are eligible to claim dinner in the event they return home after 7:00 p.m.* *7:00 p.m. is defined as direct travel time and does not include time taken to stop for dinner. National City, CA LSA Agreement 110620.docx ••:;:•. tyler 22 135 of 483 5. Internet Access — Hotels and Airports Employees who travel may need to access their e-mail at night. Many hotels provide free high speed Internet access and Tyler employees are encouraged to use such hotels whenever possible. If an employee's hotel charges for internet access it is reimbursable up to $10.00 per day. Charges for internet access at airports are not reimbursable. 6. International Travel All international flights with the exception of flights between the U.S. and Canada should be reserved through TMC using the "lowest practical coach fare" with the exception of flights that are six (6) or more consecutive hours in length. In such event, the next available seating class above coach shall be reimbursed. When required to travel internationally for business, employees shall be reimbursed for photo fees, application fees, and execution fees when obtaining a new passport book, but fees related to passport renewals are not reimbursable. Visa application and legal fees, entry taxes and departure taxes are reimbursable. The cost of vaccinations that are either required for travel to specific countries or suggested by the U.S. Department of Health & Human Services for travel to specific countries, is reimbursable. Section 4, Meals & Incidental Expenses, and Section 2.b., Rental Car, shall apply to this section. National City, CA LSA Agreement 110620.docx ••:;:•. tyler 23 136 of 483 • •••••• t ler • technologies Exhibit C Maintenance and Support Agreement We will provide you with the following maintenance and support services for the Tyler Software. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement. 1. Term. We provide maintenance and support services on an annual basis. The initial term commences on the Effective Date, and remains in effect for one (1) year. The term will renew automatically for additional one (1) year terms unless terminated in writing by either party at least thirty (30) days prior to the end of the then -current term. 2. Maintenance and Support Fees. Your year 1 maintenance and support fees for the Tyler Software are listed in the Investment Summary, and your payment obligations are set forth in the Invoicing and Payment Policy. We reserve the right to suspend maintenance and support services if you fail to pay undisputed maintenance and support fees within thirty (30) days of our written notice. We will reinstate maintenance and support services only if you pay all past due maintenance and support fees, including all fees for the periods during which services were suspended. 3. Maintenance and Support Services. As long as you are not using the Help Desk as a substitute for our training services on the Tyler Software, and you timely pay your maintenance and support fees, we will, consistent with our then -current Support Call Process: 3.1 perform our maintenance and support obligations in a professional, good, and workmanlike manner, consistent with industry standards, to resolve Defects in the Tyler Software (subject to any applicable release life cycle policy); provided, however, that if you modify the Tyler Software without our consent, our obligation to provide maintenance and support services on and warrant the Tyler Software will be void; 3.2 provide support during our established support hours, currently Monday through Friday from 8:00 a.m. to 9:00 p.m. (Eastern Time Zone). Emergency 24-hours per day, 7 days per week, support for New World Public Safety CAD only. After 9:00 p.m., the New World CAD phone support will be provided via pager and a support representative will respond to CAD service calls within 30 minutes of call initiation. 3.3 maintain personnel that are sufficiently trained to be familiar with the Tyler Software and Third Party Software, if any, in order to provide maintenance and support services; 3.4 provide you with a copy of all releases to the Tyler Software (including updates and enhancements) that we make generally available without additional charge to customers who have a maintenance and support agreement in effect; and 3.5 provide non -Defect resolution support of prior releases of the Tyler Software in accordance with any applicable release life cycle policy. National City, CA LSA Agreement 110620.docx ••:;:•. tyler 24 137 of 483 4. Client Responsibilities. We will use all reasonable efforts to perform any maintenance and support services remotely. Currently, we use a third -party secure unattended connectivity tool called Bomgar, as well as GotoAssist by Citrix. Therefore, you agree to maintain a high-speed internet connection capable of connecting us to your PCs and server(s). You agree to provide us with a login account and local administrative privileges as we may reasonably require to perform remote services. We will, at our option, use the secure connection to assist with proper diagnosis and resolution, subject to any reasonably applicable security protocols. If we cannot resolve a support issue remotely, we may be required to provide onsite services. In such event, we will be responsible for our travel expenses, unless it is determined that the reason onsite support was required was a reason outside our control. Either way, you agree to provide us with full and free access to the Tyler Software, working space, adequate facilities within a reasonable distance from the equipment, and use of machines, attachments, features, or other equipment reasonably necessary for us to provide the maintenance and support services, all at no charge to us. We strongly recommend that you also maintain a VPN for backup connectivity purposes. 5. Hardware and Other Systems. If you are a self -hosted customer and, in the process of diagnosing a software support issue, it is discovered that one of your peripheral systems or other software is the cause of the issue, we will notify you so that you may contact the support agency for that peripheral system. We cannot support or maintain Third Party Products except as expressly set forth in the Agreement. In order for us to provide the highest level of software support, you bear the following responsibility related to hardware and software: (a) All infrastructure executing Tyler Software shall be managed by you; (b) You will maintain support contracts for all non -Tyler software associated with Tyler Software (including operating systems and database management systems, but excluding Third -Party Software, if any); and (c) You will perform daily database backups and verify that those backups are successful. 6. Other Excluded Services. Maintenance and support fees do not include fees for the following services: (a) initial installation or implementation of the Tyler Software; (b) onsite maintenance and support (unless Tyler cannot remotely correct a Defect in the Tyler Software, as set forth above); (c) application design; (d) other consulting services; (e) maintenance and support of an operating system or hardware, unless you are a hosted customer; (f) support outside our normal business hours as listed in our then -current Support Call Process; or (g) installation, training services, or third party product costs related to a new release. Requested maintenance and support services such as those outlined in this section will be billed to you on a time and materials basis at our then current rates. You must request those services with at least one (1) weeks' advance notice. 7. Current Support Call Process. Our current Support Call Process for the Tyler Software is attached to this Exhibit C at Schedule 1. National City, CA LSA Agreement 110620.docx ••:;:•. tyler 25 138 of 483 National City, CA LSA Agreement 110620.docx • •••••• t ler • technologies Exhibit C Schedule 1 Support Call Process If, after you have cut over to live production use of the Tyler Software, you believe that the Tyler Software is Defective, as "Defect" is defined in the Agreement, then you will notify us by phone, in writing, by email, or through the support website. Please reference http://www.tylcrtcch.comiclicnt-support for information on how to use these various means of contact. Documented examples of the claimed Defect must accompany each notice. We will review the documented notice and when there is a Defect, we shall resolve it at no additional cost to you beyond your then -current maintenance and support fees. In receiving and responding to Defect notices and other support calls, we will follow the priority categorizations below. These categories are assigned based on your determination of the severity of the Defect and our reasonable analysis. If you believe a priority categorization needs to be updated, you may contact us again, via the same methods outlined above, to request the change. In each instance of a Priority 1 or 2 Defect, prior to final Defect correction, the support team may offer you workaround solutions, including patches, configuration changes, and operational adjustments, or may recommend that you revert back to the prior version the Tyler Software pending Defect correction. (a) Priority 1: A Defect that renders the Tyler Software inoperative; or causes the Tyler Software to fail catastrophically. After initial assessment of the Priority 1 Defect, if required, we shall assign a qualified product technical specialist(s) within one business (1) hour. The technical specialist(s) will then work to diagnose the Defect and to correct the Defect, providing ongoing communication to you concerning the status of the correction until the Tyler Software is operational without Priority 1 defect. The goal for correcting a Priority 1 Defect is 24 hours or less. (b) Priority 2: A Defect that substantially degrades the performance of the Tyler Software, but does not prohibit your use of the Tyler Software. We shall assign a qualified product technical specialist(s) within four (4) business hours of our receipt of your notice. The product technical specialist will then work to diagnose and correct the Defect. We shall work diligently to make the correction, and shall provide ongoing communication to you concerning the status of the correction until the Tyler Software is operational without Priority 2 Defect. The goal for correcting a Priority 2 event is to include a correction in the next Tyler Software release. ••:;:•. tyler 26 139 of 483 (c) Priority 3: A Defect which causes only a minor impact on the use of the Tyler Software. We may include a correction in subsequent Tyler Software releases. National City, CA LSA Agreement 110620.docx ••:;3H tyler • 27 140 of 483 • ••..tyler• • technologies Exhibit D Third Party End User License Agreement REMAINDER OF PAGE INTENTIONALLY LEFT BLANK National City, CA LSA Agreement 110620.docx ••:;:•. tyler 28 141 of 483 END USER LICENSE AGREEMENT RED HAT r ENTERPRISE LINUXID AND RED HAT APPLICATIONS redhat. PLEASE READ THIS END USER LICENSE AGREEMENT CAREFULLY BEFORE USING SOFTWARE FROM RED HAT. BY USING RED HAT SOFTWARE, YOU S'GNIFY YOUR ASSENT TO AND ACCEPTANCE OF THIS END USER LICENSE AGREEMENT AND ACKNOWLEDGE YOU HAVE READ AND UNDERSTAND THE TERMS. AN INDIVIDUAL ACTING ON BEHALF OF AN ENTITY REPRESENTS THAT HE OR SHE HAS THE AUTHORITY TO ENTER INTO THIS END USER LICENSE AGREEMENT ON BEHALF OF THAT ENTITY. IF YOU DO NOT ACCEPT THE TERMS OF THIS AGREEMENT, THEN YOU MUST NOT USE THE RED HAT SOFTWARE THIS END USER LICENSE AGREEMENT DOES NOT PROVIDE ANY RIGHTS TO RED HAT SERVICES SUCH AS SOFTWARE MAINTENANCE, UPGRADES OR SUPPORT. PLEASE REVIEW YOUR SERVICE OR SUBSCRIPTION AGREEMENT{Sl THAT YOU MAY HAVE WITH RED HAT OR OTHER AUTHORIZED RED HAT SERVICE PROVIDERS REGARDING S ERViC ES AND ASSOCIATED PAYMENTS_ This end user icense agreerrer°t ('EULA') governs the use of any of the versions of Red Hat Enterprise Linux. certain other Red Hat software applications that include or refer tc t.^s license, and any related updates, source code, appearance, structure and organization (the 'Programs'), regardless of the delivery median sm. License Grant. Subject to the following terms, Red Hat. Inc. ('Red Hat') grants to you a perpetual. worldwide license to the Programs (most of which nclde multple software components) pursuant to the GNU General Public License v2. The license agreement for each software component is located im the software component's source code and permits you to run. copy. modify, and redistribute the software component (subject to certain obligations n same cases), both in source code and binary code forms. with the exception of (a) certain binary only firmware components and (b) the images identified in Section 2 below. The license rights for the binary only firmware compcnems are located with the components themselves. This EU LA pertains solely to the Programs and does not limit your rights under, or grant you eighth that supersede, the license terms of any particular component 2_ intellectual Property Rights. The Prograrns and each of their components are owned by Red Hat and other licensors and are protected under copyrght taw and under other laws as applicable_ Tide to the Programs and any component, orb:. any copy. modification. or merged portion shall remain with Red Hal and other licensors, subject to the applicable license. The 'Red Hat` trademark and the'Shadowman' logo are registered trademarks of Red Hat in the U.S. and other comities. This EULA does not permit you to distribute the Programs or their components ustig Red Hat's trademarks. regardless of whether the copy has been modified. You may make a commeitial redistribution of the Programs only if (a) permitted under a separate written agreement with Red Hat authorizing such commercial redistribution. or (b) you remove and replace all occurrences c€ Red Hat trademarks. Modifications to the software may corrupt the Programs. You should read the information found at jrtte,4hrxw redhat.co Wahout'comoorateiYrademarki before distributing a copy of the Programs. 3_ Limited Warranty. Except as specifira'y slated in t- is Section 3.. a separate agreement with Rec Hat, or a license for a particular component, to the maximum extent permitted under applicable law, the Programs and the components are provided and licensed "as is without warranty of any kind. expressed or implied. including the implied warranties of merchantability. non -infringement or fitness for a particular purpose. Red Hat warrants that the media on which the Programs and the components are provided wi be free from defects materials and manufacture under normal use for a period of 30 days from the date of delivery to you. Neither Red Hat nor its affiliates warrants that the functions ocntaiied it the Programs will meet your requirements or that the operation of thePrograms wit be entirely error free, appea' or perform precisely as described in the accompanying documentation, or comply with regulatory requirements. This warranty extends only to the party that purchases subscription services for the Programs from Red Hat and!or its affiliates or a Red Hat authorized' distributor. 4_ Limitation of Remedies and Liability. To the maximum extent permitted by applicable law, your exclusive remedy under this EULA is to return any defective media within 30 days of delivery along with a copy of your pa}mem receipt and Red Hat at Is option. will replace it or refund the money you paid for the media. To the maximum extent permitted under applicable law, under no circumstances will Red Hat, its affiliates, any Red Hat authorized distributor, or the licensor of any component provided to you under this EULA be liable to you for any incidental or consequential damages, including lost profits or lost savings arising out of the use or inability to use the Programs or any component. even if Red Hat, its affiliates, an authorized distributor andior licensor has been advised of the possibility of such damages. In no event shall Red Hat's or its affiliates' liability, an authorized distributor's liability or the liability of the licensor of a component provided to you under this EULA exceed the amount that you paid to Red Hat for the media under this EULA 5_ Export Control. As required by the laws of the United Slates and other comities. you represent and warrant that you: (a) understand that the Programs and their components may be subject to export controls under the U.S. Commerce Department's Export Administration Regulations ('EAR'); (b) are not located in a prohibited destnation country under the EAR or U.S. sanctions regulations (currently Cuba, Iran, Iraq, North Korea, Sudan and Syria, subject to change as posted by the United States government); (c) will not export re-export or transfer the Programs to any prohbited destihaton or persons or entities on the U_S. Bureau of Industry and Security Denied Parties List or Entity List. or the U.S_ Office of Foreign Assets Control list of Specially Designated Nationals and Blocked Persons. or any similar lists maintaned by other countries, without the necessary export license(s) o aitho zation(s); (d) wit not use or transfer the Programs for use in connection with any nuclear, chemical of biological weapons, missile technology, or military end -uses where prohibited by an applicable arms embargo, finless authorized by the relevant government agency by regulation or specific license; (e) understand and agree that if you are in the Urerted States and export or transfers the Programs to eligible end users. you will. to the extent required by EAR Section 740.17{e), submit semi-annual reports to the Commerce Department's Bureau of Industry and Security. which include the name and address (nduding country) of each transferee; and (f) understand that countries including the United States may restrict the import. use. or export of encryption products (which may include the Programs and the components) and agree that you shall be sdely responsible for compliance with any such import use, or export restrictions. End User license Ag eemierlt Page i of Red Hat Enterprise Ltiut'&,and Red liar,,opn4-atkxns h7c•ieT.7er2010 National City, CA LSA Agreement 110620.docx • ••:;:•. tyler 29 142 of 483 H. Third Party Programs. Red Hat may distribute third party software programs with the Programs that are not part of the Programs. These third party programs are not required to run the Programs, are provided as a convenience to you, and are subject ID their own license terms. The license terms either accompany the third party software programs or can be viewed at htto:terww.rec3bat.cornrlicensesMh'rdoartan'eula.html. H you do not agree to abide by the applicable license terms for the third party software programs, then you may not install them. If you wish to install the third party software programs on more than one system or transfer the third party software programs to another party. then you must cent= the fic ensor of the applicable third party software programs. 7. General H any provision of this EULA is held to be unenforceable. the enforceability of the rernaning provisions shall not be affected. Any thin, controversy or dispute arising under or relating bo this EULA shal be governed by the Taws of the State of New York and of the United States, without regard to any conflict of laws provisions. The rights and obligations of the parries to this EUCA shall not be governed by the United Natoas Convention on the International Sale of Goods_ Cape t C 1-11 Poet Hat, Inc. N riaM reserved. 'Red Far and Ite Red :-tut chsdir,ant° loge are reattTd trademarks et Rea: Hat, 1m Rims s a regldere'd trademark d Urals Tamed ds. N or ertradervks are Me rr 5tj of their reX.icI've ewers. Era User Manse Agree rrlerrt Rage 2 or 2 Rea Havel Errrerpr1se Ltblurt. and Red Jfar A,ppRcaGTns hk1^rember20TO National City, CA LSA Agreement 110620.docx • ••:;:•. tyler 30 143 of 483 • ••::•. tyler . f� • technologies Exhibit E Professional Services 1. Project Management Services We shall act as Project Manager to assist you in implementing the Tyler Software. Project Management Services include: a) Developing an Implementation Plan; c) Providing revised Implementation Plans (if required); d) Providing monthly project status reports; and e) Facilitating project status meetings • a project review (kickoff) meeting at your location • progress status meeting(s) during implementation via telephone conference or at your location; and • a project close-out meeting at your location to conclude the project. f) Consultation with other vendors or third parties, if necessary. 2. Implementation and Training Support Services Implementation and training support services have been allocated for this project as described in the Investment Summary. Avoiding or minimizing custom or modified features will aid in keeping the support costs to the amount allocated. The recommended implementation and training support services include: a) implementation of the Tyler Software; b) Training you or assisting with your training on the Tyler Software; and c) tailoring of Tyler Software by our technical staff and/or consultation with our technical staff. The project management, implementation and training support services provided by us may be performed at your premises and/or at our headquarters in Troy, Michigan (e.g., portions of project management are performed in Troy). 3. Interface and/or Fixed Installation Services We shall provide interface installation services as described in the Investment Summary. Our GIS implementation services are to assist you in preparing the required GIS data for use with the Tyler Software. At a minimum, you will be required to provide an accurate street centerline layer and the appropriate polygon layers needed for Unit Recommendations and Run Cards in an industry standard ESRI file format (Personal National City, CA LSA Agreement 110620.docx ••:;:•. tyler 31 144 of 483 Geodatabase, File Geodatabase, Shape Files). You are responsible for having clearly defined boundaries for Police Beats, EMS Districts and Fire Quadrants. If necessary, we will assist you in creating the necessary polygon layers (Police Beats, EMS Districts and Fire Quadrants) for Unit Recommendations and Run Cards. We are not responsible for the accuracy of or any ongoing maintenance of the GIS data used within the Tyler Software. 4. Hardware Quality Assurance Service We shall provide Hardware Systems Assurance of your server(s). a) Hardware Quality Assurance Services (High Availability Environment): Hardware Systems Assurance and Software Installation: - Assist with High Level System Design/Layout - Validate Hardware Configuration and System Specifications - Validate Network Requirements, including Windows Domain - Physical Installation of our Application Servers - Install Operating System and Apply Updates - Install SQL Server Standard and Apply Updates - Install New World Applications Software and Apply Updates - Establish Base SQL Database Structure - Configure System for Electronic Customer Support (i.e. NetMeeting) Tune System Performance Including Operating System and SQL Resources - Provide Basic System Administrator Training and Knowledge Transfer - Document Installation Process and System Configuration 5. Message Switch Operating System Assurance Service We shall provide Message Switch Operating System Assurance, which includes: a) Message Switch Operating System Assurance Services: Operating System Assurance and Software Installation Services: - Install and update Red Hat Linux Operating System - Build system user -ids and applicable authorizations - Migrate all Message Switch data from the old server to the new server (if applicable) - Verify all scripts are adjusted for new machine - Migrate all source code from old machine to the new machine - Compile New World Message Switch programs - Assure Message Switch operation in the live environment - Adjust any tables as needed during the assurance phase National City, CA LSA Agreement 110620.docx ••:;:•. tyler 32 145 of 483 • • ••••• tyler .• . • technologies Exhibit E Schedule 1 Data File Conversion Assistance We will provide conversion assistance to you to help convert the existing data files specified below. If additional files are identified after contract execution, estimates will be provided to you prior to us beginning work on those newly identified files. General 1. A data conversion analysis and assessment to verify the scope of effort for the project will be conducted. A revised cost estimate for the data conversion may be provided at the conclusion of the assessment. You may elect to cancel or proceed with the conversion effort based on the revised estimate. 2. This conversion effort includes data coming from one unique database or source, not multiple sources. 3. No data cleansing, consolidation of records, or editing of data will be part of the data conversion effort. Any data cleansing, removal of duplicate records, or editing must take place by you prior to providing the data to us. Our Responsibilities 1. We will create and provide you with a conversion design document for signoff prior to beginning development work on the data conversion. No conversion programming by us will commence until you approve this document. 2. We will provide the data conversion programs to convert your data from a single data source to the Tyler Software for the specified files that contain 500 or more records. 3. As provided in the approved project plan for conversions, we will schedule on -site trips to your location in order to conduct the following: a. Conversion Analysis, b. Assistance for Mapping and Testing, and c. Conversion Go -Live Implementation and Support You will be responsible for travel expenses as set forth in the Invoicing and Payment Policy. 4. We will provide you up to three (3) test iterations of converted data. One test iteration consists of: a. Running a conversion test in your test environment, National City, CA LSA Agreement 110620.docx ••:;:•. tyler 33 146 of 483 b. Your reviewing a conversion test and responding in writing to us (see Client responsibilities paragraph 3 below), c. We correct or otherwise respond to issues discovered and reported by you, d. We will conduct internal testing to verify corrections, and e. Both parties planning for the next test iteration and/or the live implementation. 5. Tyler will provide warranty coverage for any conversion -procedure -related issue reported by Client to Tyler within thirty (30) days after the conversion is run in the live database. Client Responsibilities 1. Provide a current copy of the databases to be converted in one of the following formats: a. Microsoft SQL Server database b. Microsoft Access database c. Microsoft Excel spreadsheet d. An ASCII format delimited text file, including embedded column headers and text delimiters. 2. You will respond to each test iteration in writing, on a form provided by us, either: a. Indicating acceptance that the Data Conversion Process is ready for the final conversion, or b. Indicating a list of changes that need to be applied to the Data Conversion Process for the next test iteration. Up to three (3) test iterations are provided as part of the Data Conversion Process. After the third (3rd) test iteration, you shall pay our then -current flat fee for each additional test iteration. You will promptly review each test iteration when delivered by us. Prompt review by you will reduce the likelihood that a need for additional test iteration(s) may arise due to an extended delay between delivery of a test iteration and its review. 3. If available, provide a data dictionary (data descriptors) of the databases being converted. 4. As provided in the project plan for conversions, you will provide a dedicated resource in each application area to focus on conversion mapping and testing. This includes dedicating a support person(s) whenever our staff is on site regarding conversions. Roughly a one to one ratio exists for your commitment and our commitment. You understand that thorough and timely testing of the converted data by your personnel is a key part of a successful data conversion. 5. You agree to promptly review and signoff on both the conversion design document, and on the final conversions after appropriate review. Only one data source will be converted for each of the files described in the Investment Summary, unless otherwise noted. National City, CA LSA Agreement 110620.docx ••:;:•. tyler 34 147 of 483 • •••••• t ler • technologies Exhibit E Schedule 2 Customer Requested Standard Software Enhancements and/or Custom Software 1. Definition We will provide you requested standard software enhancements and/or custom software services as discussed below. You agree to cooperate in limiting the scope of those modifications and enhancements, as described below. An analysis and assessment to verify the scope of effort for these services will be conducted. A revised estimate for the enhancements/customizations may be provided at the conclusion of the assessment. You may elect to cancel or proceed with the enhancements/customizations based on the revised estimate. Capabilities included in the initial scope: a) Custom Software/Interface(s) While we will provide reasonable consultation, you are responsible for obtaining technical contacts and/or technical specifications from the third parties involved. (1) SDLaw Warrant Lookup (2) NetRMS Call -for -Service Export (3) ARJIS Call for Service Export 2. Methodology to Provide Enhancements and/or Custom Software a) Our Responsibility As part of our delivery of these services, we will: (1) Review the required features for the items set forth in paragraph 1, above, with you. (2) Prepare a Requirements Document (RD) to include: • Detailed description of the required feature • menu samples • screen samples • report samples National City, CA LSA Agreement 110620.docx ••:;:•. tyler 35 148 of 483 (3) Conduct the programming and programming test. (4) Provide the associated in -scope training, testing and/or other support services. For an enhancement or custom software requiring over seven (7) days of services, we will utilize the design document procedure described below. For enhancements or custom software that require less than seven (7) days of services, we will use a Request for Service (RFS) procedure. Both procedures are reviewed with you at a pre -installation planning meeting. The RFS procedure utilizes a form with a narrative description and supporting documentation if applicable to define the work to be done. b) Design and Development Procedure Activity Targeted Time Period (1) We will work with your staff in completing the RD. You To be determined agree to be reasonable and flexible in not attempting to design the modifications to be more extensive than called for in the scope (cost and schedule) of this project. (2) (3) We submit completed RD to you. You will review and sign off on the RD. Once you sign off on the RD, any subsequent changes must be documented along with the impact on pricing and schedule, if any. No programming will be done by us until the formal sign -off and your authorization to proceed in writing. (4) We complete programming from RD and provide the associated deliverable to you. (5) You test software modification based on RD. 3. Third Party Responsibilities To be determined To be determined To be determined To be determined a) The third -party will provide a documented API that will allow access to required data via a file transfer, web service, or TCP/IP. b) We will not be responsible for making any modification in the 3rd party software to support this interface. c) The third -party will work with us and you to test the interface. The custom interfaces we agree to deliver to you under this Agreement are set forth in the Investment Summary and in the Interface Control Document(s) (ICD) listed below. National City, CA LSA Agreement 110620.docx ••:;:•. tyler 36 149 of 483 Interface Control Document (ICD) National City, CA Interface SDLaw Warrant Lookup Direction Query Third Party SDLaw Record Type NA Detailed Description Tyler Technologies will provide an interface that will allow users to query warrant data through the New World NCIC functionality. Assumptions 1. The third -party will provide a documented API that will allow access to required data via a file transfer, web service, or TCP/IP. 2. Tyler Technologies will not be responsible for making any modification in the 3rd party software to support this interface. 3. The third -party will work with Tyler Technologies and the customer to test the interface. For Internal Use Only: Practice Manager Craig Salyers Design and Development Hours 140 Deployment Hours 40 Trips Required 0 Interface NetRMS Call -for -Service Export Direction Export Third Party NetRMS Record Type Call for Service Detailed Description Tyler Technologies will provide an interface that will export call for service data from New World Public Safety to NetRMS. The transfer of data will be an automated batch process that will occur at a frequency configurable by the customer. The interface will support one transfer method and format. Data may be transmitted as a file, through a web service, as a TCP message or other agreed upon protocol. The interface will be limited to fields that exist in the New World module. No new fields will be added to the database or user screen. Assumptions 1. The third -party will provide a documented API that will allow access to required data via a file transfer, web service, or TCP/IP. 2. Tyler Technologies will not be responsible for making any modification in the 3rd party software to support this interface. 3. The third -party will work with Tyler Technologies and the customer to test the interface. Page 1 of 2 Sep 21, 2021 150 of 483 Interface Control Document Sedgwick County, KS For Internal Use Only: Practice Manager Craig Salyers Design and Development Hours 60 Deployment Hours 30 Trips Required 0 Interface ARJIS Call for Service Export Direction Export Third Party ARJIS Record Type Call for Service Detailed Description Tyler Technologies will provide an interface that will export call for service data from New World Public Safety to ARJIS. The transfer of data will be an automated batch process that will occur at a frequency configurable by the customer. The interface will support one transfer method and format. Data may be transmitted as a file, through a web service, as a TCP message or other agreed upon protocol. The interface will be limited to fields that exist in the New World module. No new fields will be added to the database or user screen. Assumptions 1. The third -party will provide a documented API that will allow access to required data via a file transfer, web service, or TCP/IP. 2. Tyler Technologies will not be responsible for making any modification in the 3rd party software to support this interface. 3. The third -party will work with Tyler Technologies and the customer to test the interface. For Internal Use Only: Practice Manager Craig Salyers Design and Development Hours 60 Deployment Hours 30 Trips Required 0 Page 2 of 2 Sep 21, 2020 151 of 483 • ••.tyler • technologies Exhibit F Additional Terms for New World Public Safety and Brazos Hosted Components We will provide you with the New World Public Safety and Brazos hosted components of Tyler Software indicated in the Investment Summary of this Agreement. The terms and conditions contained in this document only apply to our provision of those applications. Capitalized terms not otherwise defined will have the meaning assigned to such terms in your License and Services Agreement. 1. Additional Definitions. The following definitions shall apply to this Exhibit: 1.1. "Hosted Components" means the New World Public Safety and Brazos hosted components of Tyler Software identified in the Investment Summary. 1.2. "Hosting Services" means the hosting services Tyler will provide for the Hosted Components for the fees set forth in the Investment Summary. Terms and Conditions for the Hosting Services are set forth in this Exhibit F. 1.3. "SLA" means the service level agreement applicable to the Hosting Services. A copy of Tyler's current SLA is attached hereto as Schedule 1. 1.4. "Third Party Services" means the services provided by third parties, if any, identified in the Investment Summary. 2. Hosting Terms for the Hosted Components. 2.1. We will either host or engage Third Party Services in order to host the Hosted Components set forth in the Investment Summary for the fees set forth therein. You agree to pay those fees according to the terms of the Invoicing and Payment Policy. In exchange for those fees, we agree to provide the Hosting Services according to the terms and conditions set forth in this Exhibit F, and the other applicable terms of the Agreement. If you fail to pay those fees, we reserve the right to suspend delivery of the applicable Hosting Services after advance written notice to you of our intention to do so. 2.2. In our sole discretion, we may elect to migrate the Hosting Services to a replacement system (including our own) and will undertake reasonable efforts to complete such transfer during maintenance windows as set forth in the SLA. We will undertake reasonable efforts to provide you with advance written notice of any such transfer. You agree to provide all reasonable assistance and access in connection with any such transfer. In the event the Hosted Components are transferred to our data center and we provide hosting services directly to you, the terms of the SLA will also apply. 2.3. The initial term for the Hosting Services is one (1) year. Thereafter, the term will renew automatically for additional one (1) year terms, unless terminated by either party at least thirty (30) days in advance of the upcoming renewal date. 2.4. Where applicable, we will perform or cause to have performed upgrades of the applications, hardware, National City, CA LSA Agreement 110620.docx ••:;:•. tyler 38 152 of 483 and operating systems that support the Hosting Services. These upgrades are performed in commercially reasonable timeframes and in coordination with third -party releases and certifications. We will make available information on industry -standard minimum requirements and supported browsers for accessing the Hosting Services. • e�� tyler National City, CA LSA Agreement 110620.docx ••• •}a 39 153 of 483 • ••.tyler • technologies Exhibit F Schedule 1 Service Level Agreement for Hosted Components Agreement Overview This SLA outlines the information technology service levels that we will provide to you to ensure the availability of the Hosting Services that you have requested us to provide. All other support services are documented in the applicable Support Call Process. All defined terms not defined below have the meaning set forth in the Agreement. Definitions Attainment: The percentage of time a service is available during a billing cycle, with percentages rounded to the nearest whole number. Client Error Incident: Any service unavailability resulting from your applications, content or equipment, or the acts or omissions of any of your service users or third -party providers over whom we exercise no control. Downtime: Those minutes during which the applicable software products are materially unavailable for your use. Downtime does not include those instances in which only a Defect is present. Service Availability: The total number of minutes in a billing cycle that a given service is capable of receiving, processing, and responding to requests, excluding maintenance windows, Client Error Incidents and Force Majeure. Service Availability The Service Availability of the applicable software products is intended to be 24/7/365. We set Service Availability goals and measures whether we have met those goals by tracking Attainment. Client Responsibilities Whenever you experience Downtime, you must make a support call according to the procedures outlined in the applicable Support Call Process exhibit. You may escalate through the hosting hotline. You will receive a support incident number. Any Downtime is measured from the time we intake your support incident. To track attainment, you must document, in writing, all Downtime that you have experienced during a billing cycle. For purposes of this Service Level Agreement, billing cycle shall be based on each calendar quarter. You must deliver such documentation to Tyler within thirty (30) days of a billing cycle's end. National City, CA LSA Agreement 110620.docx ••:;:•. tyler 40 154 of 483 The documentation you provide must substantiate the Downtime. It must include, for example, the support incident number(s) and the date, time and duration of the Downtime(s). Tyler Responsibilities When our support team receives a call from you that a Downtime has occurred or is occurring, we will work with you to identify the cause of the Downtime (including whether it may be the result of a Client Error Incident or Force Majeure). We will also work with you to resume normal operations. Upon timely receipt of your Downtime report, outlined above, we will compare that report to our own outage logs and support tickets to confirm that a Downtime for which Tyler was responsible indeed occurred. We will respond to your Downtime report within thirty (30) days of receipt. To the extent we have confirmed Downtime for which we are responsible, we will provide you with the relief set forth below. Client Relief When a Service Availability goal is not met due to your confirmed Downtime, we will provide you with relief that corresponds to the percentage amount by which that goal was not achieved, as set forth in the Client Relief Schedule below. Notwithstanding the above, the total amount of all relief that would be due under this SLA will not exceed 5% of the fee for any one billing cycle. Issuing of such credit does not relieve us of our obligations under the Agreement to correct the problem which created the service interruption. A correction may occur in the billing cycle following the service interruption. In that circumstance, if service levels do not meet the corresponding goal for that later billing cycle, your total credits will be doubled, with equal relief being provided in that later billing cycle. Client Relief Schedule Targeted Attainment Actual Attainment Client Relief 100% 98-99% Remedial action will be taken at no additional cost to you. 100% 95-97% Remedial action will be taken at no additional cost to you. 4% credit of fee for affected billing cycle will be posted to next billing cycle 100% <95% Remedial action will be taken at no additional cost to you. 5% credit of fee for affected billing cycle will be posted to next billing cycle You may request a report from us that documents the preceding billing cycle's Service Availability, Downtime, any ••:;:•. tyler 41 National City, CA LSA Agreement 110620.docx 155 of 483 remedial actions that have been/will be taken, and any credits that may be issued. That report is available by contacting the hosting hotline through the support portal(s). Applicability The commitments set forth in this SLA do not apply during maintenance windows, Client Error Incidents, and Force Majeure. We perform maintenance during limited windows that are historically known to be reliably low -traffic times. If and when maintenance is predicted to occur during periods of higher traffic, we will provide advance notice of those windows and will coordinate to the greatest extent possible with you. When maintenance is scheduled to occur, we will provide approximately two (2) weeks' advance written notice to the contact information that you supply on your notification form. When emergency maintenance is scheduled, you will receive an email at that same contact point. Force Majeure You will not hold us responsible for meeting service levels outlined in this SLA to the extent any failure to do so is caused by Force Majeure. In the event of Force Majeure, we will file with you a signed request that said failure be excused. That writing will include the details and circumstances supporting our request for relief with clear and convincing evidence pursuant to this provision. You will not unreasonably withhold your acceptance of such a request. National City, CA LSA Agreement 110620.docx ••:;:•. tyler 42 156 of 483 Updated: National City CA LSA Agreement 110620 (002) Final Audit Report 2021-02-25 Created: 2021-02-25 By: Ruth Ann Hines (ruthann.hines@tylertech.com) Status: Signed Transaction ID: CBJCHBCAABAArd8RXLXGfyvURBrjOoNHsystpCj9M6Ym "Updated: National City CA LSA Agreement 110620 (002)" Hist ory Document created by Ruth Ann Hines (ruthann.hines@tylertech.com) 2021-02-25 - 8:48:58 PM GMT- IP address: 68.40.141.227 Document emailed to Bryan Proctor (bryan.proctor@tylertech.com) for signature 2021-02-25 - 8:50:53 PM GMT Email viewed by Bryan Proctor (bryan.proctor@tylertech.com) 2021-02-25 - 8:55:07 PM GMT- IP address: 166.216.159.232 6''a Document e-signed by Bryan Proctor (bryan.proctor@tylertech.com) Signature Date: 2021-02-25 - 8:56:05 PM GMT - Time Source: server- IP address: 166.216.159.232 0 Agreement completed. 2021-02-25 - 8:56:05 PM GMT El Adobe Sign 157 of 483 1 [LESSEE] Lease Purchase Financing [Closing Date] Closing Documents 1. Master Lease Purchase Agreement — attach<.'Thr execution 2. Lease Schedule No. 1 — attached for exec' a. Equipment Description b. Payment Schedule — In: er to avoid a p ial rate adjustment, all closing documents must h• returned by ^r<`•,,k. ,':;>.i<. `rfry {;`. 3. Acceptance Certificate:;jedhire use 4. Escrow Agreement:; 5. Pay Proceeds Lotter •-' 6. TaxCertifica :[ached`itlion 7. Incumbency Ctfi-of Les, attached for execution 8. A aroval of Gov iing'' i3'dy of Le ' ' — Lessee to provide to closing 9. ' i tc i7lrz •, aunse[5 i7,Lessek*Lessee to provide prior to closing �...Cry,,,•,, '�:.. .,.:�..,... 10. IRS I m 86 ee to ide a signed copy prior to closing orm 803 8-G — Lessee to file the original with the Lessor with proof of mailing (post -closing) — Lessee to provide prior to any escrow disbursement SO/Title application — Lessee to provide prior to any disbursement ;enholder: BciCapital, Inc. Address: 390 N. Orange Ave., Ste. 2600, Orlando, FL 32801 dor Contract — Lessee to provide fully -executed version prior to any disbursement Payment/Performance Bond — Lessee to provide original prior to any disbursement Dual -obligee: BciCapital, Inc. 158 of 483 MASTER LEASE PURCHASE AGREEMENT This Master Lease Purchase Agreement (this "Agreement"), dated as of , 2020, is made and entered into by and between BciCapital, Inc. ("Lessor"), and the , a political subdivision of the State of ("Lessee"). In consideration of the mutual covenants herein contained, the parties hereto agree as follows: 1. LEASE OF EQUIPMENT; FUNDING 1.1. Lase; Possession and Use. Lessor hereby agrees to sello, Thfer and lease to Lessee, and Lessee hereby agrees to acquire, purchase and lease from Lessor the Operty described in each Lease Schedule (defined herein) executed and delivered by Lessor and Les g on the terms and conditions set forth herein, together with all attachments, additions, aceesslong, parts, raIrs, improvements, replacements and substitutions thereto (the "Equipment"). Each Lease exefttii0tid delivered by Lessor and .Lessee pursuant to this Agreement shall constitute a *rate and indeAtelit lease anctinstallment purchase of the Equipment described therein. This Agreemenel03not a commitni4by Lessof* enter into any Lease and nothing in this Master Lease shall behconstrue ‘Tacilnipose any obli449,fi#0;n Lessor to enter into any proposed Lease. The decision wheth Lsar-tpterS"ittitg,any Lease is ‘41tin Lessor's sole discretion. As used herein, (i) "Lease Schedulet eans a Sagdule btantiatIyAfAhe form attached as Exhibit A to this Agreement, together with all addertikriders, • achment eiti1is and exhibits thereto, as the same may from time to time be amnde4, modtt or sirlemented "Lease" means a Lease Schedule each together with this Agreement erms and kailitions of which are incorporatedtherein. 1.2. Funding. Unless otherwise pro44ed Iu the apPli*le Lease Schedule, in order to provide financing to pay the costs to Alike and insta )1;k e Eqtupinent §-Of forth in the applicable Lease Schedule (the "Etuvitasa.Prio_e"), Lesscii d ssee shalt,4:ecutC0deliveiran escrow agreement relating to such Schedule in form and substanee ant with scroW gent atigactory to Lessor (an "Escrow Agreement') If all conditions setprth in Sectiott, a'i74.agn, isfied in full or waived, then Lessor will deposit or cause to be depositk..;:94ari escrow fund under Jttted Escrow Agreement, or pay to Lessee an amount (which may include tThied investment Ornings bn) equal to the Purchase Price for the Equipment to be financed under th relaced ese Schell* Funding eunnts The,,funding of the Purchase Price and the performance by Lessor of any � its obligations puat1i6 any Lease, are subject to the satisfaction or waiver of the following: Fee „ted all of the following documents, which shall be reasonably satisfactoiy, in form and substance, to evidence of insurance coverage or self-insurance as required by the Lease; (2) an opinion ofLeWe's counsel and/or bond counsel to Lessee; (3) waivers of third parties holders of interests in the real proofty.' where the Equipment will be located, as Lessor may deem necessary; (4) copies of rest:dud,* Lessee's governing body, duly authorizing the Lease and the Escrow Agreement and incumbency certificates for the person(s) executing the Lease and the Escrow Agreement; (5) such documents and certificates as Lessor may request relating to federal tax -exemption of interest payable under the Lease, including (without limitation) IRS Form 8038-G or 8038-GC and evidence of the adoption of a reimbursement resolution or other official action in the event that Lessee is to be reimbursed for expenditures that it has paid more than 60 days prior to the funding of the Purchase Price; (6) if the Purchase Price will be paid to Lessee (or vendor(s) or supplier(s) of the Equipment on behalf of Lessee), an acceptance certificate for the Equipment (substantially in the form attached as Exhibit B to this Agreement)(an "Acceptance Certificate"), and (7) such other documents and information previously identified by Lessor or otherwise reasonably requested by Lessor. 1 159 of 483 (b) Lessee has executed and delivered to Lessor the Lease Schedule, its related Payment Schedule and the related Escrow Agreement (if applicable); (e) no Event of Default shall have occurred and be continuing under any Lease; (d) no material adverse change shall have occurred in the financial condition of Lessee; (e) the Equipment is reasonably satisfactory to Lessor and is free and clear of any Liens (defined herein) ether than the respective rights of Lessor and Lessee as herein provided; and (0j all representations of Lessee in the Lease remain true, ael to and complete. 1,4, .Delivery, .Installation and Acceptance of Equipment see shall order each Equipment, shall cause the Equipment to be delivered and installed at the locations s i' ;t 1 ed q the applicable Lease Schedule and shall pay all taxes, delivery costs and installation costs, if any;?:., t lotion therewith. If the Purchase Price is deposited under an Escrow Agreement forte acquisition o<$e Equipment, such funds J.... shall be disbursed as provided therein. The insufficiency of pioeeds of any Le o pay`(lOusts of the Equipment subject thereto shall not affect Lessee'sLessee's .41j,g tions'i4 9.1. this Section , the Equipment described in such Lease Schedule is delivered, iris 1I f1 ccepfi Lessee shall pt tly execute and deliver to Lessor an Acceptance Certificate for tl :e quipme i 2. TERM 2.1. Term. The term of each Le to Leas si shall commence on the Lease Date set a°i ; forth in the applicable Lease Schedule and sl ._tef :hate ITS% ,synnent of the all Rental Payments, unless sooner terminated pursuant to t t ;Lease. 3. RENTAL PAYM131NITs 3.1, L yrnents. La , agri r h >Spay the rent payments ("Rental Payments") in the amounts and on the `'d t ach a "Payi 1e t.Date") as; pecified in the Payment Schedule attached to each Lease Schedule, A po . n o 4 h.Rental ent is paid as interest as specified in the Payment Schedule J1 r for each 4€t. All RAW Payme .cs all bey: ,,.,:id to Lessor, at such places as Lessor may from time to time des: de"by written ° ticet4 , I,pssee shall pay the Rental Payments with lawful money of the Unite0 tes of .America f ni treys 1ega11y available therefor. .ems The obligations of Lessee, including its obligation to pay the Rental Payments dui" ii y fTs iiu ear All constitute a current expense of Lessee for such fiscal year and shall not constitute an indebtedniits ortessee within the meaning of the Constitution and laws of the State of s==__ . (the "StatenfVE RENTAL PAYMENTS ARE TO BE MADE ONLY FROM LESSEE'S LEGALLY AVAILA:s:REVENUES APPROPRIATED ON AN ANNUAL BASIS, AND NEITHER LESSEE, THE STATM NOR ANY POLITICAL SUBDIVISION OR AGENCY THEREOF SHALL BE OBLIGATED TO PAY ANY SUMS DUE UNDER A LEASE FROM THE COMPELLED LEVY OF AD VALOREM OR OTHER TAXES EXCEPT FROM THOSE LEGALLY AVAILABLEREVENUES APPROPRIATED BY LESSEE ON AN ANNUAL BASIS. Nothing herein shall constitute a pledge by Lessee of -the full faith and credit or taxing power of the Lessee. The person or entity in charge of preparing Lessee's budget will include in the budget request for each fiscal year the Rental Payments to become due during suchfiscal year, and will use all reasonable and lawful means available to secure the appropriation of money for such fiscal year sufficient to pay all Rental Payments coming due therein. Lessor acknowledges that appropriation for Rental Payments is a governmental function which Lessee cannot 2 160 of 483 contractually eomnlit itself in advance to perform. Lessee reasonably believes that moneys in an amount sufficient to make all Rental Payments can and will lawfully be appropriated and made available to permit Lessee's continued utilization of the Equipment in the performance of its essential functions during the applicable Lease Terms, 3_3. Unconditional Rental Payments. Subject to Section 3.4 hereof: (a) Lessee's obligation to make Rental Payments and any other payments hereunder shall be absolute and unconditional; (b) Lessee shall make these payments when due and shall not withhold any of these payments pending final resolution of any disputes; (c) Lessee shall not assert any right of set-off or counterclaim against its obligation to make these payments; (d) Lessee's obligation to make Rental Payments or othepayments shall not be abated through accident„ unforeseen circumstances, failure of the Equipmentto&form as desired, damage or destruction to the E ui ment loss of possession ofthe Equipment or,o '`1escence ofthe Equipment; and q p � p,,�' (e) Lessee shall be obligated to continue to make payments required' by this Agreement reement if title to, or temporary use of, the Equipment or any part thereof shall be taken undee, rcise; '; the power of eminent domain, 3.4. lionappropriation. If during the then current aI. year of Lesse .1 ficienFunds are not appropriated to make Rental Payments required un i a asc for i ie following fig"' ''' (an "Event of Nonapproprktion"), Lessee shall be deemed not to: .ve r°e 14 +ed su ,ease for the fol pn uig fiscal year, `•,y;' rtie. .,fir:. ,.. and the .Lease shall terminate at the end of the thet urrent fig" :year, `a d esseey ball not be obligated to make Rental payments under the Lease bcYond th , Chien cur.rrnt fiscal `y' f liich funds have been appropriated, Upon an :Event of Nonappi;o` C ation, Le . sEta eturn the Iaq l nient subject to the Lease to Lessor in accordance with the requiredi :ott s= o£ Section 11 '3 Lessee shall notify Lessor in writing no later than 30 days following an Event of f\on j opriation t failure to provide such notice shall not operate to extend the Lease Term. If Lessee 'f'Ib ttrurn the'=applicable Equipment or otherwise comply with Section 11,3, the termirtt11t1?.;;,sha11 never f less 1 effectiv a but Lessee shall be responsible for the payment of damages in an adfiffi .qua1 to the Mount i e Rental Payments that would thereafter have come due if the Lease had not beh rrrt�f�E i d int ^ zhich u ;l ttributable to the number of days after which Lessee fails to coin y with Lessor, 'struoi ;for any other loss suffered by Lessor as a result of Lessee's failure to;•;;gdh actionsi'equired °Tlition, Lessor may, by written instructions to any escrow agent who is '#1d1it •oeeeds of`lh r Lease, insttuct such escrow agent to release all such proceeds and any earnings there i`: to I etf dty . Intei t other a#'unts due and pays coitditi t iroc :tir direct, of Lessee 4 .... ,:: of the Equipment (now ex „. • Lessee's obligations to pay all Rental Payments and all er each Nase and to perform and observe all covenants, agreements and olute or contingent, due or to become due or existing or hereafter arising) e hereby grants to Lessor a first priority, security interest in any and all ot!ereafter acquired) under each Lease, moneys and investments held from time to time the Escrow 1{d under each Escrow Agreement and any and all proceeds of any of the foregoing..Lessee agrees xecute and deliver to Lessor all necessary documents to evidence and perfect such security interesi~'Y' hiding, without limitation, Uniform Commercial Code financing statements and any amendments thereto and certificates of title or certificates of origin (or applications thereof) noting Lessor's interest thereon. 4. PURCHASE AND PREPAYMENT 4.1. End of Lease Term. Lessee shall have the option to purchase all of the Equipment under a Lease upon the expiration of the Lease Term and payment in full of all Rental Payments then due and all other amounts then owing under the Lease, and the payment of $1.00 to Lessor. 3 161 of 483 4.2. Optional Prepayment. Lessee shall have the option to prepay its obligations under any Lease in whole but not in part on any Payment Date as set forth in the applicable Payment Schedule , but only if and to the extent the Lease Schedule provides for such prepayment. Lessee shall give written notice to Lessor of its intention to exercise its option not less than thirty (30) days prior to the Payment Date on which the option will be exercised and shall pay to Lessor not later than such Payment Date an amount equal to all Rental Payments and any other amounts then due or past due under such Lease, including the Rental Payment due on the Payment Date on which the option shall be effective, and the applicable Prepayment Price set forth in the applicable Payment Schedule (the "Prepayment Price"). 4.3, £ ces_s..Proceeds. Lessee's obligations under a Lease shaii;.;be prepaid in part from the excess proceeds of the Lease on the terms set forth in any Escrow Agreement pursuant to which proceeds of the Lease are being held. 4.4. Release of Lessor's Interest. Upon timely receipt, it required for the purchase of the Equipment subject to any Lease pursuant td-;, in whole of any Lease pursuant to Section 4.2, such Lease ;all terminate, ail' interest in and to the Equipment shall terminate, and Lessor sh 1I eiiver to Lesse' instruments as Lessee may reasonably request to evidep he termingltion of the Le in the Equipment, without warranty by or recours 5. REPRESENTATION, WARRANTIES AND COVEN 5,1, Representations and W:';;rs representations and warranties to Lessor wt' such Lease: (a) Lessee is a slt`stical sub of the Internal Revenue Code o Constitution and laws of the State' into this Agreement:ease and the its obligations underfgs``j ument an nsactei Tease. nds, of all amounts h 4.1 or the prepayment essor's right, title and such,: l iOiments and ssor's interest 'all be deemed to make the following ease, in each case as of the Lease Date for he State within the meaning of Section 103(c) the` de"), duly organized and existing under the nder the Constitution and laws of the State to enter templated hereby and thereby, and to perform all of The ex,t9,.tion atC3ivery i .his Agreement and the Lease Schedule have been duly authori 1 by'all necessai aet Am.'ss governing body and such action is in compliance with all public adding and other 5 d federa Flaws applicable to this Agreement and the acquisition and financii eof the Bq ipnient by Lessee. (c) This Agii'.. enl'd the Lease Schedule have been duly executed and delivered by and constitute the valid and bin l g obligations of Lessee, enforceable against Lessee in accordance with their respective terms. (d) The execution, delivery and performance of this Agreement and the Lease Schedule by Lessee does not (i) violate any State or federal law or local law or ordinance, or any order, writ, injunction, decree, or regulation of any court or other governmental agency or body applicable to Lessee, or (ii) conflict with or result In the breach or violation of any term or provision of, or constitute a default under, anynote, bond, mortgage, indenture, agreement, deed of trust, lease or other obligation to which Lessee is bound. (e) There is no action, suit, proceeding, claim, inquiry or investigation, at law or in equity, before or by any court, regulatory agency, public board or body pending or, to the best of Lessee's knowledge, threatened against or affecting Lessee, challenging Lessee's authority to enter into this 4 162 of 483 Agreement or the Lease Schedule or any other action wherein an unfavorable ruling or finding would adversely affect the enforceability of this Agreement or the Lease Schedule. (f) Lessee or Lessee's governing body has appropriated and/or taken other lawful actions necessary to provide moneys sufficient to pay all Rental Payments during the current fiscal year, and such moneys will be applied in payment of all Rental Payments due and payable during such current fiscal year. (g) Lessee has an immediate need for, and expects to make immediate use of, the Equipment, which need is not temporary or expected to diminish during the applicable Lease Term. 5.2. Tax.Ccavenunts. (a) Lessee covenants and agrees that it will (i) cornpl`,and timely file an information reporting return with the Internal Revenue Service ("IRS") in accordanceth Sea"tt 149(e) of the Code; (li) not permit the Equipment to be directly or indirectly used. for a private li`u a Fuse within the meaning of Section 141 of the Code including, without limitation, � i ;. by private peis` s or entities ,pursuant to contractual arrangements which do not satisfy IRS guidelines )permitted mail went c rTtttacts, as the sanie may be amended from time to time; (iii) invest. d; reinvest keys on deposit*:Cites i escrow fund related to each Lease from time to time in a martn a°:'•`illnot .e'itm o such Lease to ;be classified as an "arbitrage bond" within the meaning of Section ' (a) of the' ` de; iv earnings in any such escrow fund to the federal gotljn .Trent if '>uired by" 148(f) of the Code and make the determOons an&Igaintai: ie records comply with all provisions and regulations a pbcable ftPf0. the interest component of the Rental Paym kls. rider eac Section 103 of the Code. ;.bate an,: i ,ount equal to excess ordance with, Section ed by the Code; and (v) hing and maintaining the excludability of rise from federal gross income pursuant to (h) If Lessor eith > ves notic , n any un, fronithe IRS; or (ii) reasonably determines, based can an opinion of independent i et Yxttsgl s ted by'1 :ssor that Lessor may not exclude the interest component of any Rental Pa en ;t llder 'ii' m federal gross income, then Lessee shall pay to Lessor, within thirtgl ,;.days after I t not see of such determination, the amount which, with respect to Rental ..PaYi i . { t y, ously paid 1 taking i o account all penalties, fines, interest and additions to tax (including all fed ral, s tc an4 local f' ;imposed on the interest component of all Rental Payments under the;.i.. s..e due through the dirt r: uch ev` n t) that are imposed on Lessor as a result of the loss of the exclusi ii 3 Will restore to: sso tfrc saum• fler tax yield on the transaction evidenced by such Lease (assuiri. tax at the highest h1 ii ginal corporate tax rate) that it would have realized had the exclusion not been 1oi Additip M;tly,,.,.Lessc ;agrees that upon the occurrence of such an event, it shall pay additional rent to Les :icy twwecii;Rental Payment due date in such amount as will maintain such after tax yield to Lessor. Lessor's t` titermWtion of the amount necessary to maintain its after-tax yieldes provided in this subsection (h) shall Iyeonclusive (absent manifest error). 6. INSURANCE; CAS ' AND CONDEMNATION 6.1. , Liability and Property Insurance. Lessee shall, at its own expense, procure and maintain continuously in effect during each Lease Term: (a) public liability insurance for death or injuries to persons, or damage to property arising out of or in any way connected to the Equipment sufficient to protect Lessor and its assigns from liability in all events, with a coverage of not less than $1,000,000 per occurrence unless specified differently in the related Lease Schedule, and (b) insurance against such hazards as Lessor may require, including, but not limited to, all-risk casualty and property insurance, in an amount equal to the greater of the full replacement cost of the Equipment or the applicable Prepayment Price. 5 163 of 483 6.2. Insurance Requirements. All insurance policies required by Section 6.1 shall be taken out and maintained with insurance companies acceptable to Lessor and shall contain a provision that thirty (30) days prior to any change in the coverage (including cancellation) the insurer must provide written notice to the insured parties. No insurance shall be subject to any co-insurance clause. Each liability insurance policy shall be endorsed to name Lessor and its assigns as an additional insured party and each casualty and property insurance policy shall be endorsed to name Lessor and its assigns as loss payee, in each case regardless of any breach of warranty or other act or omission of Lessee. Lessee may self -insure against the risks deseribed in Section 6.1 with the prior written consent of Lessor. 7. ADDITIONAL ITIONAL OBLIGATIONS 7.1. ilae. .and Maintenance of Equipment. Lessee shall, 4 s s own expense, maintain the Equipment in good condition and proper working order, and sh 1.:.'in' ake all necessary repairs and replacements to keep the Equipment in such condition. The Equipmen '' ili be usedby y Lessee only forthe purpose of performing Lessee's essential governmental functions. Lessee" ll.. 'stall, use, operate or maintain the Equipment improperly, carelessly, in violation .ony manufacture`;' uidelines or in violation of any applicable law or regulation or in a manner contrary to't .;Ai contemplated''by is Agreement. Lessee �h; shall obtain and maintain all permits and licenses necessary' the installatioit;Yaltd; Aeration of the Equipment. Lessee shall have sole responsibility to; [`t a° Land ri r the Equipmeii',xr=`:essee shall keep (or in the case of Equipment constituting motor d, l} es, h se) the yl anent at the a dress specified in the related Lease Schedule; provided that Lessee' ;.h^,change'1 locatii is ,wh.c my Equipment is kept (or housed) with thirty (30) days prior written notici ': ,esso .specifying tl1'" ess of the new location. Lessee shall provide Lessor access at aili:• onable e examine an inspect the Equipment and �A. . old Y` .. N: d...:...d.. provide Lessor with such access to the Egli: ' ^ads may oasonably necessary to perform maintenance on the Equipment in the event of failure by I.e .ee to Ii orm its obligations hereunder. If Lessor reasonably determines that Lessee is not mainiai ing + of the L ipment in accordance with this Section, Lessor may an addition to ';;; ; :a.. remedi s:11 ma .,::;:axe re(q re Lessee to enter into maintenance contracts for such Equipment in .roved 6 ,essor` d with approved providers. vssments and other charges which are assessed or eieof, dh ,mg tithe Lease Term, whether assessed against Lessee .s that may lawfully be paid in installments over a period of only aita ;nstallments as accrue during the then current fiscal year 7,2. Ia es levied against the 1J'''`' or Lessor, With I'espe„ years, Les.spe; shall be d Ii'gated of the L ; Olken) for sue � affixor i impair the ai see shall' ';all yteor any pari;t Modificatio eSso1' ally "in e xes or cliff 'Equipment. Lessee will not, without the prior written consent of Lessor, ment or device on any of the Equipment if such addition will change or e, function or use of the Equipment. 7.4. Liens. Les shall not, directly or indirectly, create, incur, assume or suffer to exist any Y.J mortgage, pledge, lielleNtle, encumbrance or other claim with respect to the Equipment (each, a "Lien"), other than the respeet'&Fights of Lessor and Lessee as herein provided. Lessee shall promptly, at its own expense, take such actions as may be necessary duly to discharge or remove any such claim if the same shall arise at any time. 7.3. Financial Information. Lessee shall deliver to Lessor (i) its annual audited financial statements within 210 days after the end of each fiscal year, (ii) its annual budget the each fiscal year promptly following approval thereof, and (iii) such other financial statements and information relating to the ability of Lessee to satisfy its obligations under this Agreement and the Lease as may be reasonably requested by L ssor from time to time. 6 164 of 483 the customary services furni agrees that (a) all Equipment w with .Lessee's specifications fromla of any Equipment no obligation with {i manufacturer or Sup representa •p, guaran parties 1bt be bindi as an iO'dad beneficiary s 9. Ris 8, TITLE; NO WARRANTIES BY LESSOR 8,1, Title. During the Lease Term, legal title to all Equipment shall be in Lessee, subject to Lessor's interests under the applicable Lease Schedule and this Agreement. Upon an Event of Default or an .Event of Nonappropriation, title shall immediately vest in Lessor, free and clear of any right, title or interest of Lessee, 8.2. pr on l Property. The Equipment is and shall at all times be and remain personal property and not fixtures, 8.3. No Warranties. LESSEE ACQUIRES AND LEASES. ;E HE EQUIPMENT UNDER EACH LEASE "AS IS." LESSEE ACKNOWLEDGES THAT LES Q'DID NOT MANUFACTURE THE EQUIPMENT UNDER ANY LEASE. LESSOR DS NOT REPRESENT THE MANUFACTURER, SUPPLIER, OWNER OR DEALER, AI f ! ;LESSW, SELECTED THE EQUIPMENT BASED UPON LESSEE'S OWN JUDGMENT. LESSOI`NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OJ MERCHANT' ; ITY OR FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE OR AS 'MOE EQUIPM ? ''S VALU ? DESIGN, CONDITION, USE, CAPACITY OR DURABILITY,.,.LESS `:%4GREES THE CAUSE, LESSOR IS NOT RESPONSIBLE FO1 A 1 ,L.ESS WILL NOT AGAINST LESSOR FOR, ANY DAMAGES, V4 THEIt St Y'1 INDIRECT INCURRED BY LESSEE IN CO;F,CTION LEASE, NEITHER THE MANUFACTU R, SUP . EMPLOYEE OR AGENT OF THE •ti;+?;,FACTI1: AGENT OR HAS ANY AUTHORITY TO? * C TOR LI For and during the Lease Term under each Lelik elspr assi product warranties, express or plied, applica to'? ;.;conneetio ;s urc .s no liability= _.... '. any man represeri y. tl::made LESS OF ANY CLAIM ►NSEQ ENTIAL, DIRECT, SPECIAL OR .., TH T S QU NT UNDER ANY '•`DEALER ;°ANY SALESPERSON, �..a PPLIER OIi: DEALER IS LESSOR'S OR OR TO BIND LESSOR IN ANY WAY. 4.tx i o Lessee any manufacturer's or Supplier's 'I.:f uipriietfl and Lessor authorizes Lessee to obtain warranies at Lessee's sole expense. Lessee d by`L spr for the benefit of the Lessee in accordance y Less (b) Lessor is not a manufacturer or dealer ;sr installation of any Equipment, (c) Lessor assumes ipplier's product warranties or guaranties, (d) no Iv of said parties is an agent of Lessor, (e) any warranty, ny manufacturer or supplier or any representative of said the Lessor shall cause the supplier to identify the Lessee &ny. 9,1, Risk of .:::. ��� A'�s.between Lessee and Lessor, Lessee bears the entire risk of loss, theft, damage or destruction of i; Equipment in whole or in part for any reason whatsoever. No loss to any Equipment shall relieve L!> a from the obligation to make any Rental Payments or to perform any other obligation under any ;i Proceeds of any insurance recovery will be applied to Lessee's obligations under this Section 9. 9.2. Notice of Loss. If a casualty occurs to any Equipment, Lessee shall immediately notify Lessor of the same and Lessee shall, unless otherwise directed by Lessor, immediately repair thesame. 9.3. Application of Proceeds. If Lessor determines that any item of Equipment has suffered a casualty loss is beyond repair, then Lessee shall either: (a) immediately replace such Equipment with similar equipment in good repair, condition and working order free and clear of any liens and deliver to Lessor a purchase order, bill of sale or other evidence of sale to Lessee covering the replacement equipment, 7 165 of 483 in which event such replacement equipment shall automatically be Equipment under the applicable Lease, or (b) on the next scheduled Payment Date, pay Lessor (i) all amounts owed by Lessee under the applicable Lease, including the Rental Payment due on such date, plus (ii) an amount equal to the applicable Prepayment Price set forth in the Payment Schedule to the applicable Lease. If Lessee is making such payment with respect to less than all of the Equipment under a Lease, then Lessor will provide Lessee with the pro rata amount of the .Prepayment Price to be paid by Lessee with respect to the such Equipment. 9.4. Claims and Expenses. Lessee shall bear the risk of loss for, shall pay directly and shall defend against any and all claims, liabilities, proceedings, actions, expenses (including reasonable attorney's fees), damages or losses arising under or related to any Equipmea ;.including, but not limited to, the possession, ownership, lease, use or operation thereof These oblig 8 of Lessee shall survive any expiration or termination of any Lease. Lessee shall not bear the risj «loss of, nor pay for, any claims, liabilities, proceedings, actions, expenses (including attorney's fees), dges or losses which arise directly from events occurring after any Equipment has been returned by Lessee%(Jesse ;i' accordance with the terms of the applicable Lease or which arise directly from the gross negli # r willful misconduct of Lessor. 10. ASSIGNMENT 10.1. Assignment by Lessor. Lessor n any Equipment or any Escrow Agreement (incl ri a assign a security interest in any Lease, its Tgipment3 thereunder), in whole or in part, to any plc any ti Any such assignee or lien holder (an "Assi``'' hail hair'' Lease and Escrow Agreement. LESSEE AO'' B t OT TO CLAIMS, ABATEMENTS, ,.SETOFFS, CC'4N7LAI SIMILAR DEFENSES WfII(fMAID•.'` Lessee in writing, any such asssactio under the applicable Lease. An as'sktmet.,rea 's Lease, its Equipm, ti,� r any Escr enforceable against' st .ly after Les: and address of eacki'''%:uc ``' sianee. assignment ;ln the f i acknow "'in writing atl. ssign'`;ahts,'i(,;and interest in`ind to any Lease, the esdigt iw fund''h eunde grand/or may grant or w Agreefit,00Pluding the escrow fund m time to tiii'li'v,+ithout Lessee's consent. of the rights of Lessor under the applicable ERT AGAINST ANY ASSIGNEE ANY 1?.ECOUPMENT OR ANY OTHER AINSAESSOR. Unless otherwise agreed by ase Lessor from any of Lessor's obligations nmenta any of Lessor's right, title or interest in a ree1#i .ncluding the Escrow Fund thereunder) shall be received written notice of assignment that discloses the name shall keep a complete and accurate record of all such with Section 149(a) of the Code. Lessee agrees to "so requested. Ass.ignmentdit Subleasing by Lessee. Neither this Agreement nor any Lease or any P'^ Slj4eased, sold, transferred, pledged or mortgaged byLessee. 11, EVENTS O1 DEFAULT;' MEl 1LS 11.1. Events o a Lease shall constitut.6 atilt Defined. The occurrence of any of the following events with respect to vent of Default under the Lease: (a) Lessee's failure to pay any Rental Payment or other amount required to be paid to Lessor under the Lease within ten (10) days following the due date thereof, other than by reason of an Event of Nonappropriation; (b) Lessee fails to perform or observe any of its obligations under Section 6, 7.4 or 10.2 hereof; (e) With the exception of the above clauses (a) or (b), Lessee's failure to perform or abide by any condition, agreement or covenant with respect to the Lease for a period of thirty (30) days after written 8 166 of 483 notice by Lessor to Lessee specifying such failure and requesting that it be remedied, unless Lessor shall agree in writing to an extension of time prior to its expiration; (d) Lessee shall be in default with respect to the payment or performance of any indebtedness, liability or obligation to Lessor or any of its affiliates under any note, loan agreement, security agreement, lease, title retention or conditional sales agreement or any other instrument or agreement (including the occurrence of any Event of Default under any other Lease then held by Lessor), whether accelerated or otherwise and any applicable grace period with respect thereto has expired; (e) any statement, representation or warranty made by Leg to the Lease or in any writing delivered by Lessee pursuant thereto or in connection therewith proat any time to have been false, misleading or erroneous in any material respect as of the time when nii Qr (f) Lessee applies for or consents to the appQxntment of a rec ':,.;z � trustee, conservator or liquidator of -Lessee or of all or a substantial part of its assets t s. petition for re1I lJ is filed by..Lessee under any federal er state bankruptcy, insolvency, moratorium or sin tiaf:;law. Remedies on Default. Upon the 0„,tencd ny EY of Default.wit fl spect to a Lease, y.. Lessor shall have the right, at its option and wit13'oi;any furt=<lemantl :r;;notica:tone or more or all of the following remedies with respect to the Lease: "< (a) .Lessor, with or without tei j t ng the as may declare all Rental Payments payable j1+.; under the Lease to the end of the then-curresa year o is see to be immediately due and payable by Lessee, whereupon such Rental., Payments shabeir'ediatel Rand payable. (b) Lessor may rei{ `.: &ee to pr ptly`r I all Equipment to Lessor in the manner set forth to Section 11.3 (and Lessee' es th%t.shal rso retur'in to Equipment), or Lessor may, at its option, enter upon the premises where any : la pmeitl +1 iced and repossess such Equipment without demand, without any court oide .other proces l' law ai Stout liability for any damage occasioned by such repossession, and 1,dssor'tthereafter=dpose of he Equipment. If Lessor terminates the Lease and disposes of any or all d.-e Eq emt, Lesst §fall apply the proceeds of any such disposition to pay the `; followin #1s In the f�l'Io ing of k,; i)all c lits and expenses (including, but not limited to, attorneys' fees) i .i, red in securingVp9SV "ri of` quipment; (ii) all costs and expenses incurred in completing the didiOgiti011 of the Equi IX1'ent; (iii) any sales or transfer taxes incurred in the disposition of the Egtiipm ni • a y.ltental P vients payable under the Lease to the end of the then -current fiscal year of Lessee; (v)'t ` tilsfan'ding, prit pal component of Rental Payments under the Lease; and (vi) any other amounts then due under tire; Lease' Any disposition proceeds remaining after the requirements of clauses (1), (ii), (iii), (iv), (v) and (vi)s ave been met shall be paid to Lessee. No deficiency shall be allowed against Lessee, except with ..res, . .0 any unpaid Rental Payments to the end of the then -current fiscal year of Lessee and unpaid ei s`'and expenses incurred by Lessor in connection with the repossession and disposition of the Equipment. (a) By written notice to any escrow agent that is holding proceeds of the Lease under an . Escrow Agreement, Lessor may instruct such escrow agent to release all such proceeds and any earnings thereon to Lessor, such sums to be credited to payment of Lessee's obligations under the Lease; or (d) Lessor may exercise any other remedy available, at law or in equity, with respect to such Event of Default., Lessee shall pay the reasonable attorneys' fees and expenses incurred by Lessor in exercising any remedy hereunder. 9 167 of 483 11,3. Return of Equipment Release of Lessee's Interest. Upon termination of any Lease prior to the payment of all Rental Payments or the applicable Prepayment Price (whether as result of an Event of Nonappropriation or Event of Default) thereunder, Lessee shall, within ten (10) days after such termination, at its own expense: (a) perform any testing and repairs required to place the related Equipment in the condition required by Section 7; (b) if deinstallation, disassembly or crating is required, cause such Equipment to be deinstalled, disassembled and crated by an authorized manufacturer's representative or such other servioe person as is satisfactory to Lessor; (c) return such Equipment to a location in the continental United States specified by Lessor, freight and insurance prepaid by Lessee; and (d) comply with any additional return conditions specified in the Lease Schedule. Lessee shall execute and deliver to Lessor such documents as Lessor may request to evidence the passage of legal ti*11;,,and ownership to Lessor and termination of Lessee's interest in the Equipment. With respect to any provision of the Agreement requiring Les ,o return 1,11 or any portion of the Equipment to Lessor or to transfer title to all or any portion of the equO'npt tpl:ls'sor, Lessee agrees to voluntarily do so. In the event that Lessee fails or refuses to return or trans) it th uipment or title thereto voluntarily as set forth above, Lessor acknowledges that the` Bement does n d shall not create a right in. Lessor to involuntarily dispossess Lessee of title to or posse 'an of all or any" 'it Alof ttuipment. . 11 A. Late Charge. To the extent perm on any Rental Payment not paid on the date mfg.' in the applicable Lease Schedule plus 5% per annuir is less (the ''Default Rate"), from such dal% ,cable'(; ;. Lessee shall 15anessor a charge at a rat:O'gqual to tb nterest rate set forth Yum amdq?p:ti�ied by law, whichever 11.5, No Remedy Exclusive. Ea l ; o %C%e, righti. remedies under this Agreement and each Lease is cumulative and may be enforced sti ; ;arat l ,;or comitrently. No course of dealing or conduct between Lessor and Lessee shallbe effective t0bend edify or i nge any provisions of this Agreement or any Lease, No failure or d l b :e sor to in upon>; xe strict' performance of any term, covenant or agreement of the Agreement or y;I a i ;t9r to 'i ercise t ' right, power or remedy consequent upon a breath thereof; shall„constitute a wa `i' rofa : nehi rm, covenant or agreement or of any such breach, or preclude Lessor frog' rising any ' . ;right,` owe or remedy at any later time ortimes. 11.6. Costs` did At .; ' Fees. ` pn the occurrence of an Event of Default, Lessee agrees to a to 1,11 =,: , pay o:;,., :.ar reimbuit` _Lessor; adds i to all other amounts payable hereunder, all of Lessor's cots o ' iil8otion, includntg reaso a:coleys' fees, whether or not suit or action is filed thereon. Any such 40 shall be immedial xl line and payable upon written notice and demand given to Lessee, shall be secuied` ,-th1s A$.rne ,ent ut i 1:.paid, and shall bear interest at the Default Rate, In the event suit or action is institut 'd:'+.`°4";'g;?;f t'iterms of this Agreement, the prevailing party shall be entitled to recover from the other party such's* aitthe court may adjudge reasonable as attorneys' fees at trial and on appeal of such suit or action or in bankruptcy proceeding, in addition to all other sums provided by law. 12. MISCBLLANEOUS� ° '�1SIONS 1 2.1. Notices. All written notices to be given under this Agreement shall be given (a) personally, (b) by (nail hi registered or certified form, with postage prepaid, or (c) by overnight courier, charges prepaid, in each case to the party entitled thereto at its address specified beneath each party's signature, or at such address as the party may provide to the other parties hereto in writing from time to time, and to any assignee at its address as it appears on the registration books maintained by Lessee. Any such notice shall be deemed to have been received 72 hours after deposit in the United States mail, 24 hours after deposit with a courier, or, if given by other means, when delivered. 10 168 of 483 12.2. Binding Effect. This Agreement and each Lease hereunder shall be binding upon and shall inure to the benefit of Lessor and Lessee and their respective successors and assigns. Specifically, as used herein the terra "Lessor" means, with respect to a Lease, any person or entity to whom Lessor has assigned its right to receive Rental Payments under such Lease. 12.3. amicability. In the event any provision of this Agreement or any Lease shall be held invalid or trnenforeeable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 12.4. EntireAgreement; Amendments. Each Lease constitutes the;ntire agreement of the parties with respect to the subject matter thereof and supersedes all prior;: d'' contemporaneous writings, understandings, agreements, solicitation documents and representatoyexpress or implied. Each Lease may be amended or modified only by written documents duly authorize. ;gxecuted and delivered by Lessor and Lessee. 12.5. Captions. The captions or headings in this' 4 r ement are forTynyenience only and in no way define, limit or describe the scope or intent of any provisid , Articles, Secti' ns or claugg iereof. 12,6. Further _Assurances and Correetly ' t""" T` ; ts. LaaS r and Lessee agree that they will, from time to time, execute, acknowledge and deli or causdi be exeoted, ackn Medged and delivered, such supplements hereto and such further instrume >as may.easonab1y b e.,; ed to effect, confirm, establish, reestablish, continue or compl t `;the inter f L ; or in this '; C4Stiient and each Lease, to ai•- ��. i r., .yr•s. .r. consummate the transactions contemplate d% 1 reby and t1ii ;e �j'and to carry out the purposes and intentions of this Agreement and each Lease. 12.7, 0-inert-ling L his Agreen1 sff ;bp goveriiiLhy and construed in accordance with the laws of the State, 12,8. Usury. It is the inteh$;ipn of a j s hereto'°to comply with any applicable usury laws; accordingly, it is a d that, notwi ;tendin ovisions to the contrary herein or in any Lease Schedule, in no evdr;t; is Agree"t or any' ase hereunder require the payment or permit the collection of interest -i ,.an tot in the permitted,; �:sstr " when • the higst 1 that thei :plicable''#;, itd dal remains¢ e awful rate, the rest istttl1 orm t 12.9.` Waiver waive any right to trial by je of this Agreement. ure of interest or fees in excess of the maximum amount xcess 1 :herest or fees shall first be applied to reduce principal, and In determining whether the interest paid or payable exceeds thount ofinterest shall be spread through the applicable Lease Term so ugh such term. r.1 i1. To the extent permitted by applicable law, Lessor and Lessee hereby in any action or proceeding with respect to, in connection with or arising out 12.10. USA Patriot Act Compliance Notification. Lessor hereby notifies Lessee that pursuant to the requirements of the USA PATRIOT Act (the "Patriot Act"), it is required to obtain, verify and record information that identifies Lessee, which information includes the name and address of Lessee and other information that will allow Lessor to identify Lessor in accordance with the Patriot Act. Lessee shall, promptly upon Lessor's request, provide all documentation and other information that Lessor requests in order to comply with its ongoing obligations under applicable "know your customer" and anti -money laundering rules and regulations, including the Patriot Act. 11 169 of 483 12.11. Relationship of Fatties. Lessee acknowledges and agrees that (i) this Agreement and each Lease and the transactions related thereto is an arm's-length commercial transaction between Lessor and Lessee, (ii) in connection therewith and with the discussions, undertakings, and procedures leading up to the consummation of this transaction, Lessor is and has been acting solely as a principal and is not acting as the agent, advisor or fiduciary of Lessee, (iii) Lessor has not assumed an advisory or fiduciary responsibility in favor of Lessee with respect to the transactions contemplated hereby or the discussions, undertakings, and procedures leading thereto (regardless of whether Lessor or any affiliate thereof has provided other services or is currently providing other services to Lessee on other matters) and Lessor has no obligation to Lessee with respect to the transactions contemplated hereby except the obligations expressly set forth in this Agreement and any Lease, and (iv) Lessee has consulted its own legal, financial, and other advisors to the extent it has deemed appropriate. 12.12. filing of Leases. Lessee shall not file or sub or any portion this Agreement or any Lease, any documeilelted default, event of acceleration, termination event, waivst?�:,rt'tidificati relating to this Agreement or any Lease or any su 'lit' the foregoif Rulernaking Hoard ("MSRB") (or any successor t e' MSRB or similar"e #;„ document or portion thereof has been provided to`4h Lessor in advance for extent required by the Lessor and otherwise permitte ; ` pder appl :gable MSRB r law, if any. Lessor is not responsible far the Lessee's or disclosure obligations under any appiic::, ,ecurities law oar. 12.13. Counterparts. This Agre.,,• of counterparts, each of which shall be an`* hereto were upon the same;,' went, and iii shall not be necessary ta;; :..t:t"' < "8 ccount for laiav Lease g he same`; his Itfy's compliande`' agreement or undei'laking. ermit the filing or submission, of all his Agreement or any Lease, any terms or other similar events a.th the Municipal Securities or service) unless such rw and redaction to the :,or federal securities h any continuing ;,files may be executed in any number et as if the signatures thereto and ent and any Lease Schedules it couiYlfpart. 12.14, Electrof#i gnature r ' he parties, a that the electronic signature of a party to this Agreement and any Lease n dine € JI be as val 4 an original signature of such party and shall be effective to bin , puch part k . i i t at and s't ;. Lease Schedule(s). The parties agree that any electronic ' 0,. went ' t ittlmg this greemeYk nd any Lease Schedule) shall be deemed (i) to be "w ? ,; ; `'a "in w th " {ii)`'Y lave been - ; and (iii) to constitute a record established and tnaWar in the ordinary t dtt se of 1 mess and art'original written record when printed from electronic files. Suuh' - , er copies or `' p p.,j ;I:,. , '�l t,#i troduoed as evidence in any judicial, arbitral, mediation or administratWV "y';teeeding, will be imissibl ; , ibetween the parties to the same extent and under the same conditions as oth; iiginal busin records created and maintained in documentary form. Neither party shall contest the adifavgibility of tr. .nd accurate copies of electronically signed documents on the basis of the best evidence rii ei ; as not s tf tying the business records exception to the hearsay rule. For purposes hereof, "electronic si - na ', e' °E fls a manuallysigned original si nature that is then transmitted g �..:. � gg by electronic means; "transmit electronic means" means sent in the form of a facsimile or sent via the Internet as a "pdf ' (portable document format) or other replicating image attached to an e mail message; and, "electronically signed document" means a document transmitted by electronic means and containing, or to which there is affixed, an electronic signature. [The remainder of this page is intentionally blank. Signature page follows.] 12 170 of 483 IN WITNESS WHEREOF, Lessor has caused this Agreement to be executed in its corporate name by its duly authorized officer, and Lessee has caused this Agreement to be executed in its name by its duly authorized officer. Lessee BCICAPITAI,, INC. Lessor By: Name: Name: Title: Title: Address: Address: 390 N. Orange Ave., Suite 2600 Orlando, FL 32801 Attention: Attn: Michael Powers Senior Vice President Telephone: 1-rnall address: Telephone: (4I0) 458-5747 E-mail address: mike.powers@beicmg.com [Signature Page to Master Lease Purchase Agreement) 171 of 483 EXHIBIT A LEASE SCHEDULE NO. _ to Master Lease Purchase Agreement Dated [DATE] This Lease Schedule (this "Lease Schedule") relates to the Master Lease Purchase Agreement dated as of [DATE] (the "Agreement") between the undersigned Lessor and Lessee, together with the terms and conditions of the Agreement incorporated herein by reference, constitut .. a Lease. Unless otherwise defined herein, capitalized terms will have the same meaning ascribed t jifi in the Agreement. All terms and conditions of the Agreement are incorporated herein by referencq;, 1. E q iipnient Description. As used in the Lease, "Equipment" mean*, Exhibit 1 attached to this Lease Schedule and all attachments, additlo improvements, replacements and substitutions therel ` 2. P. tehase...Price. The Purchase Price for the in the Escrow Fund established pursue% among Lessor, Lessee and City National 3, entail ments; Lease Term. Date of this Lease and the Lease re to this Lease Schedule as Exhibit 2. 4. ] isential Use; Curren' essential to Lessee's' r pea' provides to its citizens, (f its govern n tal or propriett will not bti:: a trade o Equipment igIttt; present need a +s foz°' tq pure, Lease ;;eurre r<ft Lease, property described in ccessions, parts, repairs, which anion it1 be deposited Agreement dated as of [DATE] as es(r!_age ti be paid by. sSee to Lessor, the Lease Set forth on the Payment Schedule attached t of Less.Lesxepresenthat (a) the use of the Equipment is icient ate econyie functioning or to the services that Lessee Yy 1. went Mil be used,;;by Lessee only for the purpose of performing ndfattcatistent with the permissible scope of its authority and rg.sineseatOky person or entity, and (c) the useful life of the pn the scat „ ull Lease Term of this Lease. Lessee has determined that a uipmetl? Inch need is not temporary or expected to diminish in the ands fo The full Lease Term: to use the Equipment; and to continue S. Cations Waif"'' ies and Covenants. Lessee hereby represents, warrants and covenants that war,ties and covenants set forth in the Agreement �ts`�'���'��i�iifs�`��xg cement are true and correct as though made on the t ate='oil' execution of this Lease Schedule. 6. Batti Qualified, see certifies that it has designated this Lease as a qualified tax-exempt obligation in'iztifldance with Section 265(b)(3) of the Code, that it has not designated more than $10,000,000 of its obligations as qualified tax-exempt obligations in accordance with such Section for the current calendar year and that it reasonably anticipates that the total amount of tax-exempt obligations to be issued by Lessee during the current calendar year will not exceed $10,000,000. 172 of 483 IN WITNESS WHEREOF, Lessor has caused this Lease Schedule to be executed in its corporate name by its dilly authorized officer, and Lessee has caused this Lease Schedule to be executed in its name by its duly authorized officer. Lessee By: Name: Title: BCICAPITAL, INC. Lessor By: Name: Title: Address: Addr* 390 N. Orange ye., Suite 2600 • .••:.. ....,-..... Attention: Orlando, FL 32.. n: Michael Po Senior Vice ent Telephone: Email address: • Telephein (410) ail ess: mk boiemg.coni 173 of 483 Exhibit 1 Equipment Description [Describe Equipment and Purchase Location of Equipment: 174 of 483 Exhibit 2 Payment Schedule Annual Rate: Pnytnent Mita Payment Amount Enterem Principal BEIlanco Prepayment Antotiat Kinoling Date] $ pug DAtcl $ $ $ $ fthw Datol $ $ $ $ _ puo Dm] $ $ $ $$ TOTALS; $ $ $ $ 175 of 483 Form of ACCEPTANCE CERTIFICATE BeiCapital, Inc, 390 N. Orange Ave., Suite 2600 Orlando, FL 32801 EXHIBIT B Re: Lease Schedule No._ dated [DATE] (the "Lease Sche,,, ") to that certain Master Lease Purchase Agreement dated as of [Date] (the "Agree tti <<t" and toðer with the Lease Schedule, -"Lease") Lessee Ladies and Geatloirten: I$ the undersigned, hereby certify that I a ni: i ' cluly'i lified ;sting officer a •f essee identified below and, with respect to the above -referenced' : ,se Schell` that: 1, The Equipment subject installed, is hi good working order and is before the date hereof. 2, Attached her ,;ltrue and c the Equipment, 3. Les ,.has approp sufficient to pay allry1Paymen Lessee, Such tnoneyg<C ill be ?;plie current fiscal year, and the Ld e. has been delivered and tcl has been fully accepted by Lessee on or 4)5 of theinufacturers' and dealers' invoices for ) other lawful actions necessary to provide moneys is ',lied to`'r under the Lease during the current fiscal year of d in p :t ent of aIi''Such Rental Payments due and payable duringsuch No event' ,cps7ltlon`'`tlonstitutes, or with notice or lapse of time, or both, would constitt an Event of Defa4 (s defined in the Lease) exists at the date Lessee By: Name: Title: 176 of 483 ESCROW AGREEMENT This Escrow Agreement (this "Agreement"), dated as of , 2018, by and among BciCapital, Inc. (and any successors and permitted assigns "Lessor"), , a body corporate and politic and a political subdivision existing under the laws of the State of ("Lessee"), and City National Bank of Florida, in its capacity as escrow agent hereunder ("Escrow Agent"). Reference is made to that certain Lease Schedule No. 1 dated , 2018 to that certain Master Leaser Purchase Agreement dated as of , 2018, each between Lessor and Lessee (hereinafter collectively referred to as the "Lease"), covering the acquisition and lease of certain Equipment described therein (the ""quipment"). It is a requirement of the Lease that the Pureh e Price ($ ) be deposited into a segregated escrow account under terms satisfactory,t Y ?) ;'essor, for the purpose of fully funding the Lease, and providing a mechanism for the application of :i amounts to the purchase of and payment for the Equipment. NOW, THEREFORE, in consideration of the mutua, p omises contahiM erein and other good and valuable consideration, the receipt and sufficiency of which `' ;;5liereby acknot;ged, the ,pities hereto agree as follows: 1. Creation of Escrow Account. ac purposes stated herein, for the benefit d accordance with the terms hereof. (b) The otherwise agreed upon between (a) There is hereby,create' ;;.>.an crow fun t'v;,xi` `he known as the Escrow Account scrotr ; r qp it") to be held 1 y`''the Escrow Agent for the ee, to be held, disbursed and returned in ds in a demand deposit account or as (e) ; ;y> Unless the # tiv A` ►t z earlier terminated in accordance with the provisions of paragraph (d) bet „, c ;ants in the i o Accost ,, ha11 be disbursed by the Escrow Agent in payment of amounts described 111: ei ti ?• hereof if receipt of written instruction(s) from Lessor, as is more fully described ii1.,,Section 2 fk :0of ff` he mounts-0,sloe Escrow Account are insufficient to pay such amounts, Lessee :s 'deposit ini' #;the la ( count any funds needed to complete the acquisition of the Equipii : it; Any moneys 5tcnTaii ng in � 0 Escrow Account on or after the earlier of (i) , 201_ (" `feiin *ion late") and (ii r) `date on which Lessee executes an Acceptance Certificate shall be applied as provi a...5u (d) T ii sci'tiw Account shall be terminated at the earliest of (i) the final distribution of amounts in the Escrow A ount or (ii) written notice given by Lessor of the occurrence of a default or termination of the Leaser 4 to to non -appropriation. (e) The Escrow Agent may act in reliance upon any writing or instrument or signature which it, in good faith, believes to be genuine and may assume the validity and accuracy of any statement or assertion contained in such a writing or instrument. The Escrow Agent shall not be liable in any manner for the sufficiency or correctness as to form, manner of execution, or validity of any instrument nor as to the identity, authority, or right of any person executing the same; and its duties hereunder shall be limited to the receipt of such moneys, instruments or other documents received by it as the Escrow Agent, and for the disposition of the same in accordance herewith. In the event conflicting instructions as to the disposition of all or any portion of the Escrow Account are at any time given by Lessor and Lessee, the Escrow Agent shall abide by the instructions or entitlement orders given by Lessor without consent of the Lessee. 177 of 483 (� Unless the Escrow Agent is guilty of gross negligence or willful misconduct with regard to its duties hereunder, Lessee agrees to and does hereby release and indemnify the Escrow Agent and hold it harmless from any and all claims, liabilities, losses, actions, suits or proceedings at law or in equity, or any other expense, fees or charges of any character or nature, which it may incur or with which it may be threatened by reason of its acting as Escrow Agent under this agreement; and in connection therewith, does to the extent permitted by Iaw indemnify the Escrow Agent against any and all expenses; including reasonable attorneys' fees and the cost of defending any action, suit or proceeding or resisting any claim, (g) If Lessee and Lessor shall be in disagreement about the interpretation of the Lease, or about the rights and obligations, or the propriety of any action contemplated by the Escrow Agent hereunder, the Escrow Agent may, but shall not be required to, file an appropriate civil action including an interpleader action to resolve the disagreement. The Escrow Agent shall be reimbursed by Lessee for all costs in connection with such civil action, and shall be fully protected in suspending all or part of its activities under the Lease until a final judgment in such action is received. (h) The Escrow Agent may consult with counsel of its own choice and shall have full and complete authorization and protection with the opinion of such counsel. Lessee shall reimburse the Escrow Agent for all such reasonable costs and expenses. The Escrow Agent shall otherwise not be liable for any mistakes of fact or errors of judgment, or for any acts or omissions of any kind unless caused by its willful misconduct. (i) Lessee shall reimburse the Escrow Agent for all reasonable costs and expenses, including those of the Escrow Agent's attorneys, agents and employees incurred for non -routine administration of the Escrow Account and the performance of the Escrow Agent's powers and duties hereunder in connection with any Event of Default under the Lease, or in connection with any dispute between Lessor and Lessee concerning the Escrow Account. (j) The Escrow Agent or any successor may at any time resign by giving mailed notice to Lessee and Lessor of its intention to resign and of the proposed date of resignation (the "Effective Date"), which shall be a date not less than 60 days after such notice is delivered to an express carrier, charges prepaid, unless an earlier resignation date and the appointment of a successor shall have been approved by the Lessee and Lessor. After the Effective Date, the Escrow Agent shall be under no further obligation except to hold the Escrow Account in accordance with the terms of this Agreement, pending receipt of written instructions from Lessor regarding further disposition of the Escrow Account. (k) The Escrow Agent shall have no responsibilities, obligations or duties other than those expressly set forth in this Agreement and no implied duties responsibilities or obligations shall be read into this Agreement. 2. Acquisition of Equipment. (a) Acquisition Contracts. Lessee will arrange for, supervise and provide for, or cause to be supervised and provided for, the acquisition of the Equipment, with moneys available in the Escrow Account, Lessee represents the estimated costs of the Equipment are within the funds estimated to be available therefor, and Lessor makes no warranty or representation with respect thereto. Lessor shall have no liability under any of the acquisition or construction contracts. Lessee shall obtain all necessary permits and approvals, if any, for the acquisition, equipping and installation of the Equipment, and the operation and maintenance thereof. Escrow Agent shall have no duty to monitor or enforce Lessee's compliance with the foregoing covenant. 2 178 of 483 (b) Authorized Escrow Account Disbursements. It is agreed as between Lessee and Lessor that Disbursements from the Escrow Account shall be made for the purpose of paying (including the reimbursement to Lessee for advances from its own funds to accomplish the purposes hereinafter described) the cost of acquiring the Equipment. (c) Requisition Procedure. No disbursement from the Escrow Account shall be made unless and until Lessor has approved such requisition. Prior to disbursement from the Escrow Account there shall be filed with the Escrow Agent a requisition for such payment in the form of Disbursement Request attached hereto as Schedule I, stating each amount to be paid and the name of the person, firm or corporation to whom payment thereof is due and the manner of disbursement (check or wire), Each such requisition shall be signed by an authorized representative of Lessee (an "Authorized Representative") and by Lessor, and shall be subject to the following conditions, which Escrow Agent shall conclusively presume have been satisfied at such time as a requisition executed by Lessee and Lessor Is delivered to it: I, Delivery to Lessor of an executed Disbursement Request in the form attached hereto as Schedule I; and 2. Delivery to Lessor true and correct copies of invoices (and proofs of payment of such invoices, if Lessee seeks reimbursement) and bills of sale (if title to such Equipment has passed to Lessee) therefor as required by Section 1.3 of the Lease and any additional documentation reasonably requested by Lessor. WHO and Lessor agree that their execution of the form attached hereto as Schedule I and delivery of the executed form to Escrow Agent confirms that all of the requirements and conditions with respect to disbursements set forth in this Section 2 have been satisfied. 3. Deposit to Escrow Account. Upon satisfaction of the conditions specified in Section 1.3 of the Lease, Lessor will cause the Purchase Price to be deposited in the Escrow Account. Lessee agrees to pay any costs with respect to the Equipment in excess of amounts available therefor in the Escrow Account. 4. Excessive Escrow Account. Lessor shall provide Escrow Agent written instructions and a representation that one of the following conditions has been satisfied, (upon which representation Escrow Agent shall conclusively rely,) (a) the Termination Date; or (b) the date on which Lessee executes an Acceptance Certificate; or (c) upon a termination of the Escrow Account as otherwise provided herein. Upon receipt of suoh written instructions, any funds remaining in the Escrow Agreement shall be distributed by the Escrow Agent first, ten percent (10%) of the funds then remaining in the Escrow Account shall be disbursed to the Escrow Agent as its escrow agent fees ("Fees") and second, the remaining balance after deducting the Pees shall be disbursed to the Lessor and Lessor shall apply such funds to amounts owed by Lessee under the Lease. 5, Security Interest. The Escrow Agent and Lessee acknowledge and agree that the Escrow Account and all proceeds thereof are being held by Escrow Agent for disbursement or return as set forth herein. Lessee hereby grants to Lessor a first priority perfected security interest in the Escrow Account, and all proceeds thereof. 6. Control of Escrow Account. In order to perfect Lessor's security interest by means of conttroI in (1) the Escrow Account established hereunder, (ii) all funds now or hereafter credited to the Escrow Account, (iii) all of Lessee's rights in respect of the Escrow Account, and (iv) all products, proceeds 3 179 of 483 and revenues of and from any of the foregoing personal property (collectively, the "Collateral"), Lessor, Lessee and Escrow Agent further agree as follows: (a) All terms used in this Section 6 which are defined in the Commercial Code of the State of Florida ("Commercial Code") but are not otherwise defined herein shall have the meanings assigned to such terms in the Commercial Code, as in effect on the date of this Agreement. (b) Escrow Agent will comply with all entitlement orders originated by Lessor with respect to the Collateral, or any portion of the Collateral, without further consent by Lessee. (c) Provided that account investments shall be held in the name of the Escrow Agent, Escrow Agent hereby represents and warrants (a) that the records of Escrow Agent show that Lessee is the sole owner Of the Collateral, (b) that Escrow Agent has not been served with any notice of levy or received any notice of any security interest in or other claim to the Collateral, or any portion of the Collateral, other than Lessor's claim pursuant to this Agreement, and (c) that Escrow Agent is not presently obligated to accept any entitlement order from any person with respect to the Collateral, except for entitlement orders that Escrow Agent is obligated to accept from Lessor under this Agreement and entitlement orders that Escrow Agent, subject to the provisions of paragraph (e) below, is obligated to accept from Lessee. (d) Without the prior written consent of Lessor, Escrow Agent will not enter into any agreement by which Escrow Agent agrees to comply with any entitlement order of any person other than Lessor or, subject to the provisions of paragraph (e) below, Lessee, with respect to any portion or all of the Collateral. Escrow Agent shall promptly notify Lessor if any person requests Escrow Agent to enter into any such agreement or otherwise asserts or seeks to assert a lien, encumbrance or adverse claim against any portion or all of the Collateral. (e) Except as otherwise provided in this paragraph (e) and subject to Section 1(b) hereof, Lessee may affect the form of deposit account for the Collateral within the Escrow Account, but will not, without the prior written consent of Lessor, withdraw any Collateral from the Escrow Account. Escrow Agent acknowledges that Lessor reserves the right, by delivery of written notice to Escrow Agent, to prohibit Lessee from effecting any withdrawals (including interest income), transfers or exchanges of any Collateral held in the Escrow Account. Further, Escrow Agent hereby agrees to comply with any and all written instructions delivered by Lessor to Escrow Agent (once it has had a reasonable opportunity to comply therewith) and has no obligation to, and will not, investigate the reason for any action taken by Lessor, the amount of any obligations of Lessee to Lessor, the validity of any of Lessor's claims against or agreements with Lessee, the existence of any defaults under such agreements, or any other matter. (f) Lessee hereby irrevocably authorizes Escrow Agent to comply with all instructions and entitlement orders delivered by Lessor to Escrow Agent. (g) Escrow Agent will not attempt to assert control, and does not claim and will not accept any security or other interest in, any part of the Collateral, and Escrow Agent will not exercise, enforce or attempt to enforce any right of setoff against the Collateral, or otherwise charge or deduct from the Collateral any amount whatsoever. (h) Escrow Agent and Lessee hereby agree that any property held in the .Escrow Account shall be treated as a financial asset under such section of the Commercial Code as corresponds with Section 8.102 of the Uniform Commercial Code, notwithstanding any contrary provision of any other agreement to which Escrow Agent may be a party. 4 180 of 483 (i) Escrow Agent is hereby authorized and instructed, and hereby agrees, to send to Lessor at its address set forth in Section 8 below, concurrently with the sending thereof to Lessee, duplicate copies of any and all monthly Escrow Account statements or reports issued or sent to Lessee with respect to the Escrow Account. 7. Information Required Under USA PATRIOT ACT. The parties acknowledge that in order to help the United States government fight the funding of terrorism and money laundering activities, pursuant to Federal regulations that became effective on October 1, 2003 (Section 326 of the USA PATRIOT Act) all financial institutions are required to obtain, verify, record and update information that identifies each person establishing a relationship or opening an account. The parties to this Agreement agree that they will provide to the Escrow Agent such information as it may request, from time to time, in order for the Escrow Agent to satisfy the requirements of the USA PATRIOT Act, including but not limited to the name, address, tax identification number and other information that will allow it to identify the individual or entity who is establishing the relationship or opening the account and may also ask for formation documents such as articles of incorporation or other identifying documents to be provided. 8. Miscellaneous. Capitalized terms not otherwise defined herein shall have the meanings assigned to them in the Lease. This agreement may not be amended except in writing signed by all parties hereto. This agreement may be executed in one or more counterparts, each of which shall be deemed to be an original instrument and each shall have the force and effect of an original and all of which together constitute, and shall be deemed to constitute, one and the same instrument. Notices hereunder shall be made in writing and shall be deemed to have been duly given when personally delivered or when deposited in the mail, first class postage prepaid, or delivered to an express carrier, charges prepaid, or sent by facsimile with electronic confirmation, addressed to each party at its address below. Notices and other communications hereunder may be delivered or furnished by electronic mail; provided that any formal notice be attached to an email message in PDF format; and provided further that any notice or other communication sent to an e-mail address shall be deemed received upon and only upon the sender's receipt of affirmative acknowledgement or receipt from the intended recipient. For purposes hereof no acknowledgement of receipt generated on an automated basis shall be deemed sufficient for any purpose hereunder or admissible as evidence of receipt. If to Lessor: If to Lessee: BciCapital, Inc. 390 N. Orange Ave., Suite 2600 Orlando, FL 32801 Attention: Michael Powers Attention: If to Escrow Agent: City National Bank of Florida 25 West Flagler Street Miami, FL 33130 Attention: Account Services 5 181 of 483 9, This Agreement shall be governed by and construed in accordance with the laws of the State of - 10. Any bank or corporation into which the Escrow Agent may be merged or with which it may be consolidated, or any bank or corporation to whom the Escrow Agent may transfer a substantial amount of its escrow business, shall be the successor to the Escrow Agent without the execution or filing of any paper or any further act on the part of any of the parties, anything herein to the contrary notwithstanding. Any bank or corporation into which the Lessor may be merged or with which it may be consolidated, or any bank or corporation to whom the Lessor may transfer a substantial amount of its business, shall be the successor to the Lessor without the execution or filing of any paper or any further act on the part of any of the parties, anything herein to the contrary notwithstanding. 1 l., This Agreement may be amended, modified, and/or supplemented only by an instrument in writing executed by all parties hereto. [Signature Page hollows] 6 182 of 483 IN WITNESS WHEREOF, the parties have executed this Escrow Agreement as of the date first above written. BC.ICAPITAL, INC. as Lessor as Lessee By: By: Name: Name: Title: Title: CITY NATIONAL BANK OF FLORIDA as Escrow Agent Title: [Signature Page to Escrow Agreement] 183 of 483 SCHEDULE I to the Escrow Agreement FORM OF DISBURSEMENT REQUEST Re: Lease Schedule No._ dated [DATE] to that certain Master Lease Purchase Agreement dated as of [DATE], each between Lessor and Lessee (hereinafter collectively referred to as the "Lease") (Capitalized terms not otherwise defined herein shall have the meanings assigned to them in the Lease.) in accordance with the terms of the Escrow Agreement,,•,d as of [DATE] (the "Escrow Amine) by and among BciCapital, Inc., as lessor (and its successdi' nd permitted assigns, "Lessor"), [LESSEE] ('`Lessee") and City National Bank of Florida, as escrow dlt escrow Agent"), the undersigned hereby requests the Escrow Agent pay the following persons thYwing amounts from the Escrow ACCOunt created under the Escrow Agreement for tht; flowing purpos Payee's Name and Address (if disbursement via wire, must include wire transfer instructions) tfHNlAY� Invoice Nuirl;>> .•:.5.`f:' :: r,:' •: .l'S- Y:hj •<: ;,;.. llar Aint ,;:;:':'.. 1:'.::Y�•�nl�.f:::� ° r;_Ru'rpose ;;;:;. •.• i:•i. i7.4 '.. (a) Each'''', stated t1 ount, (b) the sa Equiptritxidentified in the L reimburs .._. iti the foregoing table has been incurred by Lessee in the propeettarge against the Escrow Account for costs relating to the e, and (c) has not been paid (or has been paid by Lessee and Lessee requests (II) Each item Equ fpment relating to an obligation specified in the foregoing table has been delivered, installed and awiled by Lessee. Attached hereto is a true and correct copy of the invoice with respect to such oblig$ (iii) The undersigned, as authorized representative of Lessee, has no notice of any vendor's, mechanic's or tither liens or rights to liens, chattel mortgages, conditional sales contracts or security interest which should be satisfied or discharged before such payment is made. (iv) This requisition contains no item representing payment on account, or any retained percentages which Lessee is, at the date hereof, entitled to retain (except to the extent such amounts represent a reimbursement to Lessee). (v) The Equipment is insured in accordance with the Lease. 184 of 483 (vi) No Event of Default, and no event which with notice or lapse of time, or both, would become an went of Default, under the Lease has occurred and is continuing at the date hereof. (vii) The representations, warranties and covenants of Lessee set forth in the Lease are true and correct as of the date hereof, (vii) No material adverse change has occurred since the date of the execution and delivery of the Lease. Dated: [LESSEE] By: Name: Title: Disbursement of funds from the Escrow Account in accordance with the foregoing Disbursement Request hereby is authorized DCICAPITAL, INC. as Lessor tender the Lease I y: Name: Title: Schedule .I- Page 2 185 of 483 PAY PROCEEDS LETTER , 2018 BciCapital, Inc, 390 N. Orange Ave,, Suite 2600 Orlando, FL 32801 Ladies and Gentlemen: The undersigned, an authorized officer of the [LESSEE]{"Lessee"), hereby authorizes BciCapital, Inc. (".Lessor") to pay the proceeds of the financial accommodations provided to Lessee by Lessor evidenced by that certain Master Lease Purchase Agreement, dated as of 11 , 2018 and the related Lease Schedule No. 1 dated , 2018, between Lessor and Lessee, to the following account of Lessee: &count : Amount of Deposit [City National Bank of Florida] Account [LESSEE] By: Name: Title: 186 of 483 TAX CERTIFICAT, This Tax Certificate (this "Certificate") is executed and delivered as of , 2018 (the "Lease Date") by the [LESSEE] ("Lessee") in connection with that certain Master Lease Purchase Agreement dated as of,. , 2018 (the "Agreement") by and between Lessee and BeiCapital, Inc. ("Lessor") and Lease Schedule No. dated as of , 2018, between Lessee and Lessor (the "Lease Schedules," and together with the Agreement, the "Lease"). The terms capitalized herein but not defined herein shall have the meanings assigned to them in the Lease. Section 1. ,Iei,+(eneral, 1.1, This Certificate is executed for the purpose of establis Lessee as to future events regarding the financing of certain equipm ' by Lessor and leased to Lessee pursuant to and in accordance with the Lessor shall apply $ (the "Principal Amount") to Equipment and Lessee shall make Rental Payments under threrms and cond 1.2. The individual executing this CertifQgte on delegated with the responsibility of reviewing and, ll official action of Lessee adopted with respect too, 1,3, The Lease is being enter J,1;nto for of acquiring, equipping and installing thOYlpment v Lessee, which Equipment is described in th;l5chedu. on the date hereof. e reasonable expectations of he "Equipment") to be acquired se. As,,escribed in the Lease, ,v acquisition of the as set forth in the Lease. if of Lessee `i` Q et of Lessee it., pursuant to tH }?ii €t''lution or other eb has been, delivered toLessor. ;fit{?';:.. . .• .try; of providtn_%ir s for financing the cost ssential to thi °'overnrnental functions of he Principal Amount will be paid to Lessee 1,4, Lessee will d; 0: a,nd time Y 1-i1e f` ch pay 'lent schedule issued under the Lease a Form 8038 relating to such t :gg " e Inteml ReVet tie Service in accordance with Section 149(e) of the Internal Revenue Code of 1' ,.,... Section 2. No ''' n 'a¢ sgryse erti Y.t The Rental Pay 'k v 't general, e'¢: Tit fig fund (o ayi ace, 15 fund of• a (cunt will be ere or pled as security thet c toi V 2.2, " :;,<.,l4ere ii deemed to be (i) issued or' pursuant to a common pl of funds as, or deem of funds as, the Lease. tR). e "Cod'e�' ue urithe Lease will be made with monies retained in Lessee's 1baccount therein). No sinking, debt service, reserve or similar ainta#1'dr"for the payment of the Rental Payments due under the Lease ei't end will be issued no obligations by or on behalf of Lessee that would be within fifteen (15) days before or after the Lease Date, (ii) issued or sold financing with the Lease and (iii) paid out of substantially the same source e substantially the same claim to be paid out of substantially the same source 2,3. Other than the Principal Amount, Lessee does not and will not have on hand any funds that are or will be restricted, segregated, legally required or otherwise intended to be used, directly or indirectly, as a substitute, replacement or separate source of financing for the Equipment. 2.4, No portion of the Principal Amount is being used by Lessee to acquire investments which produce a yield materially higher than the yield realized by Lessor from Rental Payments received under the Lease, As used in this certificate, the term "yield" means yield computed by the actuarial method using a 36O.day year and semi-annual compounding, resulting in a discount rate which, when used in computing 187 of 483 the present worth of all payments of principal and interest to be paid on an obligation, produces an amount equal to the issue price, fair market value, present value or purchase price thereof, as applicable, and is determined in all respects in accordance with Section 148 of the Code. 2.5. The Principal Amount does not exceed the amount necessary for the governmental purpose for which the Lease was entered into. Such funds are expected to be needed and fully expended for payment of the costs of acquiring, equipping and installing the Equipment. 2.6. Lessee does not expect to convey, sublease or otherwise dispose of the Equipment, in whole Of in part, at a date which is earlier than the final Payment Date under the Lease. Section 3. )isbursement of Funds: Reimbursement to Lessee. 3,1. It is contemplated that the entire Principal Amount will be used to pay the acquisition cost of Equipment to the vendors or manufacturers thereof, provided that, if applicable, a portion of the Principal Amount may be used by Lessee as reimbursement for acquisition cost payments already made by it so long as the conditions set forth in Section 3.2 below are satisfied. 3.2. Lessee shall not use any portion of the principal amount in order to be reimbursed for Equipment acquisition cost payments already made by it unless each of the following conditions have been satisfied: (a) Lessee adopted a resolution or otherwise declared its official intent in accordance with Treasury Regulation § 1.150-2 (the "Declaration of Official Intent"), wherein Lessee expressed its intent to be reimbursed from the proceeds of a borrowing for all or a portion of the oost of the Equipment, which expenditure was paid to the Vendor not earlier than sixty (60) days before Lessee adopted the Declaration of Official Intent; (b) The reimbursement being requested will be made by a written allocation before the later of eighteen (18) months after the expenditure was paid or eighteen (18) months after the items of Equipment to which such payment relates were placed in service; (e) The entire payment with respect to which reimbursement is being sought is a capital expenditure, being a cost of a type properly chargeable to a capital account under general federal income tax principles; and (d) Lessee will use any reimbursement payment for general operating expenses and not In a manner which could be construed as an artifice or device under Treasury Regulation § 1.,148.10 to avoid, in whole or in part, arbitrage yield restrictions or arbitrage rebate requirements. Section 4. fltte..and investment of Funds: Temporary Period. 4,1, Lessee has incurred or will incur, within six (6) months from the Lease Date, binding obligations to pay an amount equal to at least five percent (5%) of the Principal Amount toward the costs of the Equipment, An obligation is not binding if it is subject to contingencies within Lessee's control. The ordering and acceptance of the items of Equipment will proceed with due diligence to the date of final acceptance of the Equipment. 4,2. .An amount equal to at least eighty-five percent (85%) of the Principal Amount will be expended to pay the cost of the Equipment by the end of the three-year period commencing on the Lease Date. No portion of the Principal Amount will be used to acquire investments that do not carry out the 2 188 of 483 governmental purpose of the Lease and that have a substantially guaranteed yield in excess of the yield on the Lease. 4.3. (a) Lessee covenants and agrees that it will rebate an amount equal to excess earnings on the Principal Amount to the Internal Revenue Service if required by, and in accordance with, Section 148(f) of the Code, and make the annual determinations and maintain the records required by and otherwise comply with the regulations applicable thereto. Lessee reasonably expects to cause the Equipment to be acquired by no later than 18 months from the Lease Date. (b) Lessee will provide evidence to Lessor that the rebate amount has been calculated and paid to the Internal Revenue Service in accordance with Section 148(f) of the Code unless: (i) the entire Principal Amount is expended on the Equipment by the date that is the six-month anniversary of the Lease Date or (ii) the Principal Amount is expended on the Equipment in accordance with the following schedule: At least fifteen percent (15%) of the Principal Amount and interest earnings thereon will be applied to the cost of the Equipment within six months from the Lease Date; at least sixty percent (60%) of the Principal Amount and interest earnings thereon will be applied to the cost of the Equipment within 12 months from the Lease Date; and one hundred percent (100%) of the Principal Amount and interest earnings thereon will be applied to the cost of the Equipment by no later than 18 months from the actual Lease Date, Section S. Ai:n..Private Use: No Consumer Loan. 5,1. Lessee will not exceed the private use restrictions set forth in Section 141 of the Code. Specifically, Lessee will not permit more than 10% of the Principal Amount to be used for a Private Business Use (as defined herein) if, in addition, the payment of more than ten percent (10%) of the Principal Amount plus interest earned thereon is, directly or indirectly, secured by (i) any interest in property used or to be used for a Private Business Use or (ii) any interest payments in respect of such property or derived from any payment in respect of property or borrowed money used or to be used for a Private Business Use. In addition, if both (A) more than five percent (5%) of the Principal Amount is used as described above with respect to Private Business Use and (B) more than five percent (5%) of the Principal Amount plus interest earned thereon is secured by Private Business Use property or payments as described above, then the excess over such five percent (5%) (the "Excess Private Use Portion") will be used for a Private Business Use related to the governmental use of the Equipment. Any such Excess Private Use Portion of the Principal Amount will not exceed the portion of the Principal Amount used for the governmental use of the particular project to which such Excess .Private Use Portion is related. For purposes of this paragraph 5.1, "Private Business Use" means use of bond proceeds or bond financed -property directly or indirectly in a trade or business carried on by a natural person or in any activity carried on by a person other than a natural person, excluding, however, use by a state or local governmental unit and excluding use as a member of the general public. 5.2. No part of the Principal Amount or interest earned thereon will be used, directly or indirectly, to make or finance any loans to non -governmental entities or to any governmental agencies other than Lessee. Section 6. hist,Federal Guarantee. 6.1 a Payment of the principal or interest due under the Lease is not directly or indirectly guaranteed, in whole or in part, by the United States or an agency or instrumentality thereof. 6.2. No portion of the Principal Amount or interest earned thereon shall be (i) used in making loans the payment of principal or interest of which are to be guaranteed, in whole or in part, by the United 3 189 of 483 States or any agency or instrumentality thereof, or (ii) invested, directly or indirectly, in federally insured deposits or 4000tints if such investment would cause the financing under the Lease to be "federally guaranteed" within the meaning of Section 149(b) of the Code. Section 7. post -Issuance Compliance. 7.1 In the event an action takes place (or is anticipated to take place) that will cause the Equipment not to be used for qualified uses under Section 141 of the Code, Lessee will consult with bond counsel as soon as practicable about taking remedial action as described in Treasury Regulation Section 1.141.12. Lessee will take all actions necessary to ensure that the "nonqualified bonds" (as defined in Treasury Regulation Section 1.141-12) are properly remediated in accordance with the requirements of the Treasury Regulations. Lessee is familiar with the Internal Revenue Service's Voluntary Compliance Agreement Program pursuant to which issuers of tax-exempt debt may voluntarily resolve violations of the Code and applicable Treasury Regulations on behalf of the holders of such debt or themselves through closing agreements with the Internal Revenue Service. 7.2. Lessee will actively monitor the requirements of the Code and the Treasury Regulations (a) set forth in this certificate and confirm that such requirements are met no less than once per year; (h) related to the allocation and accounting of proceeds to capital projects and will maintain a list that specifies the allocation of proceeds of the Lease to the costs of the Equipment; and (c) related to arbitrage limitations, including yield restriction, rebate requirements and the investment of gross proceeds of the Lease. The office within Lessee that is currently responsible for such monitoring is the finance department. Section S. ,Miscellaneous. 8.1. Lessee shall keep a complete and accurate record of all owners or assignees of the Lease in form and substance satisfactory to comply with the registration requirements of Section 149(a) of the Code unless Lessor or its assignee agrees to act as Lessee's agent for such purpose. 8.. Lessee shall maintain complete and accurate records establishing the expenditure of the Principal Amount and interest earnings thereon for a period of five (5) years after payment in full under the Lease. 8. L To the best of the undersigned's knowledge, information and belief, the above expectations are reasonable and there are no other facts, estimates or circumstances that would materially change the expectations expressed herein. [Signature Page Follows] 4 190 of 483 IN WITNESS WHEREOF, this Tax Certificate has been executed on behalf of Lessee as of the Lease Date. [LESSEE] Lessee By: Print Name: Title: [Signature Page to Tar: Certificate] 191 of 483 INCUMBENCY CERTIFICATE The undersigned, the duly [elected][appointed] and acting [Secretary] [City Clerk] [County Clerk] of . ("Lessee") certifies as follows: l , The individuals identified below are the duly elected or appointed officers of Lessee holding the offices set forth opposite their respective names. 2, The individuals identified below have the authority on>?tif of Lessee to enter into that certain Master Lease Purchase Agreement dated as of [DATE] between ? entity and BCICAPITAL, INC. N Title sx;.; y.,,; •:�,,.,:.: <•Y:Y> ' rgnature IN WITNESS WITEREOF, I this certificate as of this day of Name: Title: [Board or Town Clerk] 192 of 483 [Letterhead of Counsel to Lessee] [Closing Date] BciCapital, Inc. 390 N. Orange Ave., Suite 2600 Orlando, Florida 32801 Re: Lease Schedule No. , dated Purchase Agreement, dated as of `2'y , between BciCapital, Inc., as Lessor, and [Lessee], as Lessee Ladies and Gentlemen: [I][We] have acted as counsel to [Lessee] transaction. In such capacity, [I][We] have reviewe Purchase Agreement, dated as of Inc. ("Lessor") and Lessee and an executed (the "Lease Seh xle'), b things, provides for the lease of certain pro Escrow Agreement dated City National Bank of Florida, as escrow ag h (ll execut , to Master Lease ::connection wi ll` `.<.' Iie I s Ye -referenced •" " unterpart of all., +t thi Master Lease ") , by a,u 4 beiween BciCapital, ease: ►edpi'lo. , dated Lessor an ee, which, among other e Schedule (theEquipment") and a certain Agreement"),among Lessor, Lessee, and unterpart of the ordinances or resolutions of Lessee which, among others ,hn s, authorize` psse ' rexecutds :Agreement and the Leas Schedule and (c) such other opinions, docu f * pd mattersxa, law 'if 1,]lave d fined necessary in connection with the following opinions. The Lease fie ltitl d.the t rms an visions of the Agreement incorporated therein by reference together with the Reri i ? ymeittS tet tde attached to the Lease Schedule are herein referred to collectively as the ";` se", and the se and j prow Agreement are referred to collectively as the "Transaction Docume t ]%firms capital l in this "o ] ion but not defined herein shall have the meanings assigned to them in thasi ed upon 0,0 oing, it is [my][our] opinion that: Section operatics Lessee iS.., lit < tii11t ? on of the State of [STATE] (the "State") within the meaning of (e) of the Intern Venue Code of 1986, as amended, and is duly organized, existing and der the Constitutri nd laws of the State. 2. ssee "lti t the ' pisite power and authority to lease and acquire the Equipment and to execute and deliver the Tram& ;tioii'Documents and to perform its obligations under theLease. 3. Each.) ransaction Documents has been duly authorized, executed and delivered by and on behalf of Lessee, ar d''`is a legal, valid and binding obligation of Lessee enforceable in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors' rights generally and by general equitable principles. 4. The authorization and execution of the Transaction Documents and all other proceedings of Lessee relating to the transactions contemplated thereby have been performed in accordance with all applicable open meeting, public records, public bidding and all other laws, rules and regulations of the State. 5. The execution of the Transaction Documents and the appropriation of moneys to pay the Rental Payments coming due thereunder do not and will not result in the violation of any constitutional, 193 of 483 statutory or other limitation relating to the manner, form or amount of indebtedness which may be incurred by Lessee. 6. There is no proceeding pending or threatened in any court or before any governmental authority or arbitration board or tribunal that, if adversely determined, would adversely affect the transactions contemplated by the Transaction Documents or the security interest of Lessor or its assigns, as the case may be, in the Equipment or other collateral thereunder. This opinion may be relied upon by the addressee hereof and its successors and assignees of interests in the Transaction .Documents. 194 of 483 This form and corresponding IRS instructions for completion and filing can be found on the IRS website. Form 8038•G (Rev. September 2018) Department Of the treasury Internal Revenue Service ° ,• ,t11 ■ KepOrting Authority Information return for Tax -Exempt Governmental Bon s Under nternal Revenue Code s ction 149{e) See separate instructions. Caution: lithe issue price is under$100,000, use Form 8038-GC. Go towww.irs.gov/F8038Gforinstructionsandthelatestinformation. If Amended Return, check here 10 OMB No . 1545-0720 1 Issuer's name 2 Issuer's employer identification number (EIN) 3a Name 6f person (other than issuer) with whom the IRS may communicate about this return (see instructions) 3b Telephone number of other person shown on 3a 4 Nurriber OM street (dr P.O. box if mail is not delivered to street address) Room/suite 5 Report number (For IRS Use Only) 13r1 8 City, town, or post offiee, state, and ZIP code 7 Date of issue 8 Name 6f Issue 9 CUSIP number 10a Name and titld of officer or other employee of the issuer whom the IRS may call for more Information (see instructions) 10b Telephone number of officer or other employee shown on 10a 1 'ism• IN Type of Issue (enter the issue price). See the instructions and attach schedule. 11 Education, 12 Health and hospital 13 Transportation 14 Public Safety : 15 Environment (including sewage bonds) 16 Housing 17 Utilities 18 Other, De9cribe ® 11 12 13 14 15 16 17 18 19a If bonda are TANs or RANs, check only box 19a ® • b If bends are 13ANs, check only box 19b jf.{goe fjg �r.in the form of a lease or ingtallmant sale, rhprk hnv rI� r Beseription of Bonds. Complete for the entire issue for which this form is being toed_ (it) Nine) maturity date (b) Issue price (c) Stated redemption price at maturity (d) Weighted average maturity (e)Yield 21 .__ .__ ... $ $ years % ►:.t:'r•s !J., _Uses,of Proceeds of Bond Issue (including underwriters' discount) 22 23 24 Proceeds used for accrued interest ISSue price of entire issue (enter amount from line 21, column (b)) Prooeeds used for bond issuance costs (including underwriters' discount) 24 22 23 29 25 Proceeds used for credit enhancement 25 26 Proceeds allocated to reasonably required reserve or replacement fund 26 27 Proceeds utyedto refund prior tax-exempt bonds. Complete Part V . 27 28 Prticeede used to refund prior taxable bonds. Complete Part 6' 28 29 Total (add lines 24 through28) . 30 jsJonrefunding proceed_of.the sstiel4subtract line 29 from line 23 and enter amount here) v • t' 1 r- - Fiandietinn n r+ iin r nn c r'<ur •-Jrt^ +h,.. ...,.+ ,-.-.h c,.- .l.c„�.a,...,. h....�., 30 31 Enter the remaining weighted average maturity of the tax-exempt bonds to be refunded . 32 Enter the remaining weighted average maturity of the taxable bonds to be refunded . . 33 Enter the Ia8t date on which the refunded tax-exe t bonds will be called (MM/DD/YYYY) 34 Entefthe.date(s)the refunded bonds were issued /YYYY) For Paperwork Reduction Act Notice, see separate instructions. cal. No. 63773S years Years Form 8038-G (Rev. 9-2018) 195 of 483 tSCt36-8 (rev, 0-201 8) 49. �� ... 0,011,(4ne ius 36 Enter the 81mount of the state volume cap allocated to the issue under section 141(b)(5) 36a Enter them -wont of gross proceeds invested or to be invested in a guaranteed investment contract (G10), Bee instructions b Enter the final Maturity date of the GIC® (MM/DD/YYYY) c Enter the name Of the GIC provider 37 Pooled financings; Enter the amount of the proceeds of this issuethat are to be used to make loans cf h v�r e tal unit ` 37 38a Itiiil' 1�3BS Itsia�i madeTrom the pro eeds of another ta,c-exempt issue, check box D and ente the b Enter the data of the master pool bond (MM/DD/YYYY) o Enter the EN of the issuer of the master pool bond 1 -� gg d Enter the nerve of the issuersof the master pool bon �0 If fne i iil`er h5 s ectec tod pay is penaltyy iin lieu i8tnarbarage reoate,lch{eckaDl xsue.r exception), check box If the Issuer has Identifie a hedge, check here) D and enter the following information: 41 Name of sleds €i provider, '� e of hid e Page2 35 36a c yp g r! Terrn of hedge II' 41 If the Issuer hag superintegrated the hedge, check box . ` D 43 If the Iseuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated o0Oording to the requirements under the Code and Regulations (see instructions), check box . 44 If the Issuer has established written procedures to monitor the requirements of s -lotion 148, check box . . B 46a If some portion of the proceeds was used to reimburse expenditures, check here D and enter the amount of reimburffidrnant b Enter_,t11e_ 1atIthe official intent was adooted ® (MM/OD/YYYY) ollowing inforr`iation: Signature and Consent Pak Preparer Use Only Urtd€lr penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge tifid baJief, they are true, correct, and complete. I further declare that I consent to the IRS's disclosure of the issuer's return Information, as necessary to MOM this return, to the person that I have authorized above. P1Btiature of issuers authorized represrtative 5'Y91I PrLpdI Cf S 11E1111U I[:' '(SSIyIf 3tUFC Date Tv o or mint name and title Check V i PTIN Date self-employed I Irrn8 haliie rientra Address IP I Flrm's i;IN iP i Phone no. Fonn 8038-G (Rev. 9-2018) 196 of 483 Note: PLEASE COMPLETE INSURANCE AGENT CONTACT INFORMATIONIN FULL. BciCapital, Inc. INSURANCE AUTHORIZATION LETTER Insurance Agency: _ Agent: Address: Email: _ Phone: Re: Lease between_... ("Lessor") and ("Lessee") The insurance coverages listed below are required to cover the interests of the named Secured Party and its Affiliates, Successors & Assigns (indicated below) in Equipment financed by and between Lessor and Lessee. You are therefore hereby authorized and instructed to provide the Secured Party and its Affiliates, Successors & Assigns the coverages described below. Evidence of insurance in the form of a Certificate is acceptable until the required formal Endorsements are issued. The Certificate(s) will not be acceptable unless all required endorsements are clearly stated. If you have any questions concerning the coverages, please notify BciCapital, Inc. at (407) 502-5918. In Description Btlx of Each Certificate Please Make This Notation: Re: all Equipment financed by and betweenand Lessor under Lease Schedule No. 1. Please forward the required Certificate(s) and Endorsements immediately to the following Secured Party: BCICAPITAL, INC. and Its affiliates, successors & assigns 390 N. Orange Ave., Suite 2600 Orlando, FL 32801 Phone: 407-502-5918 Email: susan.herman@bcicmg.com cc: alexandra.michelini@bcicmg.com Comprehensive General Liability Coverage: 1, Litrllts of at least $1,000,000.00 per occurrence for bodily injury and property damage coverage. 2, An Endorsement naming the above Secured Party and Its Affiliates, Successors & Assigns as an Additional Insured in so far as this Equipment is concerned. 3. An Endorsement giving each of the above named Secured Party and Its Affiliates, Successors & Assigns at least thirty (30) days written notice of any cancellation, reduction or alteration of coverage. All Risk Physical Damage (Property) Coverage: 1. All Risk coverage for not less than the Total Equipment Cost of $[LEASE AMOUNT]. 2. A long form endorsement naming the above named Secured Party and Its Affiliates, Successors & Assigns as "Additional Insured" and "Loss Payee" in so far as this Equipment is concerned, unless prohibited by applicable state law, An Endorsement giving the above named Secured Party and Its Affiliates, Successors & Assigns at least thirty (30) days written notice of any cancellation, reduction or alteration ofcoverage. 4. Any deductibles or self -insured retentions must be disclosed. 1 of 2 197 of 483 5. OVER -THE -ROAD VEHICLES ONLY: (i) Collision (maximum deductible): $10,000.00 or as approved by Credit. (11) Comprehensive (maximum deductible): $10,000.00 or as approved by Credit. Comprehensive Auto Liability Coverage (where applicable): a. Limits of at least $1,000,000.00 combined single limit per occurrence for bodily injury and property damage coverage. *May come from primary Auto Liability and/or Liability. b. An Endorsement naming each of the above named Secured Party and Its Assigns as an Additional insured in so far as this Vehicle is concerned. c. An Endorsement giving each of the above named Secured Party and Its Assigns at least thirty (30) days written notice of any cancellation, reduction or alteration of coverage. Self" -insurance or captive insurance must be disclosed. Al y deductibles or self -insured retentions must be disclosed. Each Certificate issued hereunder must confirm that the Secured Party's coverage under, and interest in, the relevant policy shall not be invalidated or otherwise adversely affected by any breach by Lessee or others of any warranty, declaration, representation or condition contained in such policy. LESSEE: BY:. -. Name: Title: 2 of 2 198 of 483 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing various Fiscal Year 2021 mid -year budget adjustments. (Finance) Please scroll down to view the backup material. 199 of 483 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: March 16, 2021 AGENDA ITEM NO.: ITEM TITLE: Resolution of the City Council of the City of National City authorizing various fiscal year 2021 mid -year budget adjustments. Phil Davis, Director of Finance PREPARED BY: Paul Valadez,Budget Manager PHONE: 619-336-4332 EXPLANATION: See attached staff report. DEPARTMENT: Finance APPROVED BY: FINANCIAL STATEMENT: APPROVED: FINANCE ACCOUNT NO. APPROVED: MIS See attached staff report. ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION FINAL ADOPTION STAFF RECOMMENDATION: Accept the staff report and adopt the resolution authorizing fiscal year 2021 mid -year budget adjustments. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Staff report 2. Resolution 3. Exhibit "A" — Recommended Mid -Year Budget Adjustments, Fiscal Year 2021 200 of 483 RESOLUTION NO. 2021 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING VARIOUS FISCAL YEAR 2021 MID -YEAR BUDGET ADJUSTMENTS WHEREAS, on June 16, 2020, the City Council of the City of National City adopted Resolution No. 2020-121, adopting the budget for fiscal year 2021; and WHEREAS, as part of the mid -year review process, the Finance Department reviewed the first six months for actual revenues and expenditures, and projected the last six months of the fiscal year; and WHEREAS, the mid -year budget review was presented to the City Council and members of the public on March 16, 2021; and WHEREAS, the City Manager has requested approval of the Recommended Mid -Year Budget Adjustments ("Exhibit 'A"); and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves the fiscal year 2021 Recommended Mid -Year Budget Adjustments ("Exhibit `A"') and authorizes the City Manager to make the associated adjustments to the Fiscal Year 2021 Budget. 201 of 483 PASSED and ADOPTED this 16th day of March, 2021. Alejandro Sotelo-Solis, Mayor ATTEST: Luz Molina, City Clerk APPROVED AS TO FORM Charles E. Bell Jr., City Attorney 202 of 483 CALIFORNIA NATIONAL CM aml INCORPORATED City Council Staff Report March 16, 2021 ITEM Staff Report: Fiscal Year 2021 Mid -Year Budget Review BACKGROUND This report provides a mid -year look at the status of the City's General Fund Budget. A first quarter status report was provided on October 20, 2020. In addition, the report recommends various budget adjustments. DISCUSSION Summary The adopted fiscal year 2021 General Fund budget authorized a use of $6.7 million of unassigned fund balance in order to continue to provide necessary services to the residents of the City of National City. Based on an analysis of year-to-date actual revenues and expenditures and projected financial activity through year-end, the anticipated use of unassigned fund balance is projected to be $1.65 million, which is $5.07 million less than authorized. The following sections of this report will discuss the significant factors leading to the variance. Revenues For fiscal year 2021, General Fund revenues are expected to be greater overall than amounts budgeted by $4.5 million. The projected variances by revenue category are shown in Table A below. 203 of 483 Page 2 Staff Report — Fiscal Year 2021 Mid -Year Budget Review March 16, 2021 Table A General Fund Revenues Fiscal Year 2021 Adopted Adjusted Projected Revenue Category Budget Budget Actuals Variance Sales & Use Tax $17,281,000 $17,281,000 $19,572,000 $2,291,000 District Transactions & Use Tax 11,293,000 11,293,000 11,916,000 623,000 Property Tax 2,436,700 2,436,700 2,376,800 (59,900) Property Tax in Lieu of VLF 7,400,000 7,400,000 7,589,222 189,222 Other Revenues 13,662,228 17,103,981 18,535,981 1,432,000 Transfers In 5,500 5,500 5,500 Total $52,078,428 $55,520,181 59,995,503 4,475,322 Note: The Adjusted Budget equals the Adopted Budget plus any year to date amendments to the budget, as well as adjustments to match appropriations carried over for revenue offset capital projects. The General Fund's primary sources of revenue are the sales & use tax, the district transactions & use tax, property tax in lieu of vehicle license fees, and property taxes. Projections are based on a combination of year-to-date and historical data, input from the City's sales tax consultant, and information obtained from the State of California and County of San Diego: ■ Sales & Use Tax and District Transactions & Use Tax: The adopted budget for these two major funding sources anticipated a continuing negative impact from the COVID-19 pandemic. Retail sales have turned out to be stronger than anticipated, however, resulting in Sales & Use Tax revenues trending above actual amounts for the same period as last fiscal year. Based on projections provided in January by the City's sales tax consultant, these revenues are expected to exceed the Fiscal Year 2020-21 budget by about $2.3 million. The District Transactions & Use Tax is currently expected to finish the year at $0.6 million above the budgeted level. Staff is working on a continuing basis with the City's sales tax consultant to ensure that we are working with the latest information for each of these funding sources as we continue to operate within the uncertainties created by the pandemic. • Property Tax revenue is expected to be below budget by approximately $60,000. Assessed values that apply to the General Fund did not increase as much as was assumed in the adopted budget. • Property Tax in Lieu of Vehicle License Fees (VLF) is based on a formula that applies the City-wide increase in assessed property values to the prior year's allocation. The increase in assessed values was not known at the time the budget was prepared, but the actual amount will be $189,000 greater than budgeted. Revenues in the "Other Revenues" category are expected to end the year above budget by $1.4 million, which is attributable to a combination of projected positive and negative variances in the various individual accounts. Contributing significantly to the positive variance are the 204 of 483 Page 3 Staff Report — Fiscal Year 2021 Mid -Year Budget Review March 16, 2021 unbudgeted CARES Act funds of $767,000 received from the State and an anticipated reimbursement of $0.9 million for overtime related to the deployment of the Fire Department's Strike Teams earlier this year. Expenditures Expenditure totals at year-end are currently projected to be below budget by $0.6 million. The variances by expenditure category are shown in Table B below. Table B General Fund Expenditures Fiscal Year 2021 Adopted Adjusted Projected Revenue Category Budget Budget Actuals Variance Personnel $41,057,517 $40,990,307 $40,780,783 $209,524 Maintenance & Operations 6,837,486 7,750,684 7,363,150 387,534 Capital Outlay 175,430 175,430 175,430 Capital Improvement Program 800,000 6,516,444 6,516,444 Internal Service Charges and Reserves 7,824,869 7,824,869 7,824,869 Transfers Out 2,100,617 2,360,369 2,360,369 Total $58,795,919 $65,618,103 $65,021,045 $597,058 Note: The Adjusted Budget equals the Adopted Budget plus any year to date amendments to the budget, as well as appropriations carried over from the prior year for contracts and capital projects. Personnel costs make up about 70% of the General Fund's adopted budget. At fiscal -year-end they are projected to be less than budgeted by an overall $0.2 million. While vacant authorized positions are contributing to anticipated savings of $3.1 million in a combination of full-time salaries, retirement plan charges, and health insurance premiums, costs for overtime requirements, primarily in the Police and Fire departments, are expected to exceed budgeted amounts by $2.5 million. As noted in the discussion of "Other Revenues" above, the anticipated reimbursement for Strike Team deployment will offset approximately $0.9 million of these overtime costs. Maintenance & Operations expenditures are projected to be 5% below budget for a savings of $0.4 million, due to a combination of anticipated savings in various accounts partially offset by unanticipated expenses in others. All appropriations for Capital Outlay and Capital Improvements are being projected as being entirely spent, because none of the current projects are expected to yield any savings from the amounts budgeted. It is likely, however, that some portion of the current year's appropriations will be unspent at year-end and will be carried over to next fiscal year. For Internal Service Charges and Transfers Out, all amounts budgeted are projected to be spent, although at year-end 205 of 483 Page 4 Staff Report — Fiscal Year 2021 Mid -Year Budget Review March 16, 2021 actual expenditures of the service provider funds will be reviewed for savings and charges will be adjusted accordingly. Similarly, the Parks Maintenance and Library funds, the primary recipients of Transfers Out from the General Fund, will be reviewed at year-end to determine whether a portion of the transfer amounts can be reduced. Staff will continue to monitor all revenues and expenditures, particularly with respect to the continued economic and fiscal impacts of COVID-19, and will provide updates in the third quarter budget status report and in conjunction with the Fiscal Year 2021-22 budget development process. Net Impact on Unassigned Fund Balance Table C below combines the revenue and expenditure projections discussed above. As noted in the summary at the beginning of this report, the adopted budget anticipated the use of $6.7 million of unassigned fund balance. The positive revenue variance of $4.5 million together with the projected expenditure savings of $0.6 million results in a $5.1 million reduction from the budgeted use of unassigned fund balance. As shown in the "Projected Actual" column, the anticipated use of unassigned fund balance is now $2.8 million. Table C General Fund Impact on Fund Balance Fiscal Year 2021 Total Revenues Total Expenditures Use of Fund Balance Components of Use of Fund Balance Assigned Unassigned Total FY 20-21 Adopted $52,078,428 $58,795,919 ($ 6,717,491) $6,717,491 $ 6,717,491 FY 20-21 FY20-21 Adjusted Projected Variance $55,520,181 $59,995,003 $4,475,322 $65,618,103 $65,021,045 $597,058 ($ 10,097,922) ($5,025,542) $5,072,380 $3,374,006 $3,374,006 $6,723,916 $2,846,536 ($5,072,380) $ 10,097,922 $ 6,220,542 ($5,072,380) Note: The use of Assigned Fund Balance is the sum of non -revenue offset appropriations that were carried over from unspent amounts from the prior fiscal year. Appropriations are carried over for contracts for work that was in progress in the prior year as well as for unspent appropriations for capital projects. The use of Unassigned Fund Balance is the focus of this report. 206 of 483 Page 5 Staff Report — Fiscal Year 2021 Mid -Year Budget Review March 16, 2021 BUDGET ADJUSTMENTS During the mid -year budget review process, the Finance Department, in conjunction with City department staff, identified budget adjustments necessary due to expenses unanticipated during the annual budgeting process. The attached schedule ("Exhibit `A') details the recommended adjustments. The recommendation section below provides a summary of those adjustments by account group and fund. RECOMMENDATIONS 1. Authorize the City Manager to approve budget adjustments up to the following amounts: • General Fund Expenditures ❑ $111,841 Revenues ❑ $111,841 Maintenance & Operations Other Revenues • Facilities Maintenance Fund Expenditures ❑ $220,000 Maintenance & Operations • Motor Vehicle Services Fund Expenditures ❑ $ 15,000 Maintenance & Operations • Nutrition Center Expenditures ❑ $32,101 • Sewer Service Fund Expenditures ❑ $200,000 FISCAL IMPACT Personnel Services Maintenance & Operations The recommended General Fund budget adjustments have been reflected in the projections of total revenues and expenditures to fiscal year end. If approved, they will result in additional General Fund appropriations of $111,841 with offsetting revenue. The adjustments for the four other funds combined total $467,101 funded by the available fund balance in the respective funds. 207 of 483 Page 6 Staff Report — Fiscal Year 2021 Mid -Year Budget Review March 16, 2021 ATTACHMENTS Resolution Exhibit "A" — Recommended Mid -Year Budget Adjustments, Fiscal Year 2021 208 of 483 Exhibit A SUPPLEMENTAL APPROPRIATION REQUESTS -Summary Fiscal Year 2021 Appropriation Revenue Net Use of Department Appropriation Account Amount Amount Fund Balance General Fund (001) Engineering & PW Contract Services • Pavement costs from Sweetwater Authority due to E. 16th St. Road Rehab Project 22,438 22,438 Environmental Compliance Contract Services • NPDES Program 32,000 32,000 Streets R&M Traffic Control Devices •Citywide Street Light and Traffic Signal Knockdowns from FY20 Recovery Liability Claims 57,403 57,403 General Fund Total 111,841 111,841 S ewer Service Fund (125) Engineering & PW Sewage Transport & Treatment •2018 Reconciliation of City of San Diego Sewage Transportation and Treatment 200,000 200,000 Nutrition Center Fund (166) Community Services Personnel Services 32,101 •Position budgeting error for the Delivery Driver and Food Services Worker positions. Corrected in Fiscal Year 2022 32,101 Facilities Maintenance Fund (626) Engineering & PW Electricity & Gas •Facilities Maintenance Electricity & Gas- required funds through FY21 195,000 195,000 Engineering & PW Electrical Materials • Omitted during FY21 budget process 25,000 25,000 Motor Vehicle Service Fund (643) Engineering & PW Automotive Parts 15,000 • Equipment Maintenance Automotive Parts - tires and parts combined but funds decreased; tires increase in need/price 15,000 209 of 483 The following page(s) contain the backup material for Agenda Item: City of National City Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2020. (Finance) Please scroll down to view the backup material. 210 of 483 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: March 16, 2021 AGENDA ITEM NO.: ITEM TITLE: City of National City Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2020. PREPARED BY: Rachelle M. Barrera, Finance Manager DEPARTMENT: Finance PHONE: 619-336-4331 APPROVED BY: EXPLANATION: Transmitted herewith is the City of National City's Comprehensive Annual Financial report for the fiscal year ended June 30, 2020 prepared by the City's external auditors, The Pun Group, LLP. The reports include all agencies under the control of the City Council, as well as the Successor Agency to the Community Development Commission as the National City Redevelopment Agency. The auditors have conducted their examination of the financial statements in accordance with generally accepted auditing standards and have expressed an unmodified ("clean") opinion of those statements. FINANCIAL STATEMENT: ACCOUNT NO. NA APPROVED: APPROVED: ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION FINAL ADOPTION FINANCE MIS STAFF RECOMMENDATION: Accept and file the City of National City Comprehensive Annual Financial Report for the Fiscal Year ended June 30, 2020. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. The comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2020 https://www.nationalcityca.gov/government/finance/financial-reports. Hard copies are available in the City Clerk's Office and the City Library. 2. Presentation 211 of 483 IR THE PUN GROUP ACCOUNTANTS \[)VISORS CITY OF NATIONAL CITY Presentation to the City Council For the Fiscal Year Ended June 30, 2020 March 16, 2021 CONTENTS • Required Communications (AU-C 260) • Audit Responsibilities • Overview of Financial Statements • Financial Indicators and Key Pension/OPEB Information • Audit Results 12 PUN GROUP tt LOUN[ N1Sa A.D'iJSCIRS 213 of 483 REQUIRED COMMUNICATIONS (AU-C 260) 1211)16N GROUP AC C3UNTANTS,i, .AU�`1<ORS Required Communications (AU-C 260) • Independence • We complied with ALL relevant requirements regarding independence • Significant Accounting Policies • The City disclosed all significant accounting policies in Note 1 to the financial statements. • The City implemented GASB Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance • Significant Estimates • Fair value on investments • Depreciation on capital assets • Net other postemployment benefit liability • Net pension liability NGR UP ACCOUNTANTS $ ADVISORS 215 of 483 Required Communications (AU-C 260) • Sensitive Disclosures • Note 1 — Reporting Entity and Summary of Significant Accounting Policies • Note 3 — Loans Receivable • Note 10 — Pension Plans • Note 11 — Other Postemployment Healthcare Benefits • Note 13 — Classification of Fund Balances • Misstatements • There were no corrected or uncorrected misstatements reported. • Consultation with Other Accountants • Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and other matters. ACCOUNTNANTS GR$AQY154U!P 216 of 483 Required Communications (AU-C 260) NGR UP ACCOUNTANTS $ ADVISORS • Significant Difficulties • We encountered no significant difficulties in dealing with management. • Disagreements with Management • We did not have any disagreements with management in terms of accounting treatments or audit procedures performed. 217 of 483 PUNGROUP AC C3UNTANTS,i, .AU�`1<ORS AUDIT RESPONSIBILITIES Management's Responsibilities • Responsible for the financial statements • Present the financial statements in accordance with accounting principles generally accepted in the United States of America • Adopt sound accounting policies • Establish and maintain internal controls over financial reporting and compliance • Provide evidence supporting the amounts and disclosures in the financial statements • Prevent and detect fraud NGR UP ACCOUNTANTS $ ADVISORS 219 of 483 OUR RESPONSIBILITY IN ACCORDANCE WITH PROFESSIONAL STANDARDS • Form and express an opinion about whether the financial statements that have been prepared by management with Board oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America • Plan and perform the audit to obtain "reasonable" assurance (not "absolute" assurance) about whether the financial statements are free of material misstatements. • Consider internal control over financial reporting. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. PUN c OF ACCOUNTANTS & AAYISORS 220 of 483 PUNGROUP AC C3UNTANTS,i, .AU�`1<ORS OVERVIEW OF THE FINANCIAL STATEMENTS 221 of 483 City of National City Government -Wide Condensed Statement of Net Position June 30, 2020 Governmental Activities Assets $ 345,688,100 Deferred Outflows of Resources 16,084,044 Liabilities 151,137,501 Deferred Inflows of Resources 2,244,332 Net Position: Net investment in capital assets 155,772,400 Restricted 101,152,527 Unrestricted (deficit) (48,534,616) Total Net Position $ 208,390,311 ,xE PUN c OF ACCOUNTANTS & AAYISORS 222 of 483 City of National City Government -Wide Summary Statement of Activities For the Year Ended June 30, 2020 Governmental Activities Expenses $ (99,386,039) Program Revenues Charges for services Operating grants and contributions Capital grants and contributions Total program revenues 25,831,605 16,658,135 4,465,126 46,954,866 Net Cost of Services (52,431,173) General Revenues - Taxes 51,775,838 Investment earnings 2,943,647 Miscellaneous 65,010 Change in Net Position $ 2,353,322 ACCOUNTA 1-r--rE NTS & AAYISORS 223 of 483 City of National City General Fund Condensed Balance Sheet June 30, 2020 Assets $ 55,790,599 Liabilities $ 6,862,203 Fund Balance Nonspendable 3,926,499 Restricted 10,092,890 Committed 11,485,066 Assigned 7,129,273 Unassigned 16,294,668 Total Fund Balance 48,928,396 Total Liabilities and Fund Balance THE PUN c OF ACCOUNTANTS & AAYISORS $ 55,790,599 224 of 483 City of National City General Fund Condensed Statement of Revenues, Expenditures and Changes in Fund Balance For the Year Ended June 30, 2020 Revenues Expenditures Revenues over Expenditures Other Financing Sources and Uses Transfers (Net) Loss on sale of land held for resale Pass -through payments to other agencies Total other financing sources/uses Change in Fund Balance THE PUN c OF ACCOUNTANTS & AAYISORS $ 61,848,951 (59,167,351) 2,681,600 (1,548,066) (589,700) (631,285) (2,769,051) $ (87,451) 225 of 483 PUNGROUP AC C3UNTANTS,i, .AU�`1<ORS FINANCIAL INDICATORS AND KEY PENSION AND OPEB INFORMATION 226 of 483 City of National City Governmental Activities Net Cost of Services to Tax Revenues 2020 2019 Net Cost of Services $ (52,431,173) $ (54,039,478) Tax Revenues 51,775,838 51,987,107 Ratio 101.27% 103.95% ACCOUNTATHE NTS & AAYISORS 227 of 483 City of National City General Fund Unassigned Fund Balance to Annual Expenditures 2020 2019 Unassigned Fund Balance $ 16,294,668 $ 13,673,543 Annual Expenditures * 59,167,351 59,566,684 Ratio 27.54% 22.96% Unassigned Fund Balance - PY $ 13,673,543 $ 12,731,293 Net Change in Unassigned Fund Balance $ 2,621,125 $ 942,250 * includes capital outlay of $3.3M for 2020 and $4.3M for 2019 ,xE PUN c OF ACCOUNTANTS & AAYISORS 228 of 483 GASB 68 - The Pension Standard As of June 30, 2019 (Measurement Date) Net Pension Liabilities @ 6.15% Net Pension Liabilities @ 7.15% Net Pension Liabilities @ 8.15% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability Prior year ACCOUNTATHE NTS & AAYISORS Miscellaneous Plan $ 53,526,837 $ 35,831,862 $ 21,193,868 73.54% 73.15% Safety Plan $ 100,616,279 $ 71,540,983 $ 47,703,525 66.28% 66.31% Total $ 154,143,116 $ 107,372,845 $ 68,897,393 229 of 483 GASB 75 - The OPEB Standard As of June 30, 2019 (Measurement Date) Net OPEB Liabilities @ 1.66% Net OPEB Liabilities @ 2.66% Net OPEB Liabilities @ 3.66% OPEB $ 6,177,295 $ 5,684,713 $ 5,045,290 Fiduciary Net Position as a Percentage of the Total OPEB Liability 0.00% THE PUN GROUF ACCOUNTANTS & AAYISORS dIEL 230 of 483 AUDIT RESULTS IIPUN GROUP ACCOUNTANTS& .ADvlSO. RS Audit Results • Opinions • Unmodified Opinions issued to all Opinion Units • Financial statements are fairly presented in all material respects • Accounting policies have been consistently applied • Estimates used are reasonable • Disclosures are properly reflected in the financial statements ACCOUNTNANTS GR$ AQY154U!P 232 of 483 Other Results • No disagreements with management • No material weaknesses/significant deficiencies were identified in internal control over financial reporting or compliance • No accounting issues • No inappropriate activities were noted NGR UP ACCOUNTANTS $ ADVISORS 233 of 483 THE PUN GROUP ACCOUNTANTS & ADVISOi _S Thank you! HQ - ORANGE COUNTY 200 E. Sandpointe Avenue Suite 600 Santa Ana, CA 92707 SAN DIEGO 4365 Executive Drive Suite 710 San Diego, CA 92121 BAY AREA 2121 North California Blvd. Suite 290 Walnut Creek, CA 94596 LAS VEGAS 1050 Indigo Drive Suite 110 Las Vegas, NV 89145 PHOENIX 4742 North 24th Street Suite 300 Phoenix, AZ 85016 234 of 483 CALIFORNIA o�N�LCJT'yN\Ti �- 1NC TE J ORPORA COMPREHENSIVE ANNUAL FINANCIAL REPORT 236 of 483 INTRODUCTORY SECTION 237 of 483 -41-` CAL1FOIN1A NATION ° \L 18.r. 4T1VCOR, P 0 R AT SD / This page intentionally left blank. 238 of 483 City of National City Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents Page INTRODUCTORY SECTION (Unaudited Table of Contents i Letter of Transmittal v City Officials xiv City Organizational Chart xv GFOA Certificate of Achievement xvi FINANCIAL SECTION Independent Auditors' Report on Financial Statements 1 Management's Discussion and Analysis (Required Supplementary Information) (Unaudited) 5 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Position 20 Statement of Activities and Changes in Net Position 22 Fund Financial Statements: Governmental Fund. Financial Statements: Balance Sheet 26 Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Position 29 Statement of Revenues, Expenditures, and Changes in Fund Balance 30 Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund. Balances to the Government -Wide Statement of Activities and Changes in Net Position 32 Proprietary Fund Financial Statements: Statement of Net Position 35 Statement of Revenues, Expenses, and. Changes in Net Position 37 Statement of Cash Flows 38 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position 43 Statement of Changes in Fiduciary Net Position 44 Notes to the Basic Financial Statements 49 239 of 483 City of National City Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents (Continued) Page FINANCIAL SECTION (Continued): Required Supplementary Information (Unaudited): Budgetary Information 101 Budgetary Comparison Schedules: General Fund 102 Housing Special Revenue Fund 103 Housing Choice Vouchers Special Revenue Fund 104 Sewer Service Special Revenue Fund 105 Other Special Revenue Fund 106 Housing Authority Special Revenue Fund 107 Schedules of Changes in the Net Pension Liability and Related Ratios 108 Schedules of Pension Contributions 110 Schedule of Changes in Net OPEB Liability and Related Ratios 112 Supplementary Information: Non -Major Governmental Funds: Combining Balance Sheet 118 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 121 Schedule of Revenues, Expenditures, and Change in Fund Balances — Budget and Actual: Library Special Revenue Fund 124 Parks Maintenance Special Revenue Fund 125 Library Capital Outlay Special Revenue Fund 126 Gas Tax Special Revenue Fund 127 Community Development Block Grant (CDBG) Special Revenue Fund 128 HOME Program Special Revenue Fund 129 Asset Forfeiture Special Revenue Fund 130 Nutrition Special Revenue Fund 131 Library Bonds Debt Service Fund 132 Internal Service Funds: Combining Statement of Net Position 134 Combining Statement of Revenues, Expenses, and Changes in Net Position 136 Combining Statement of Cash Flows 138 Fiduciary Funds: Statement of Changes in Assets and Liabilities 145 ii 240 of 483 City of National City Comprehensive Annual Financial Report For the Year Ended June 30, 2020 Table of Contents (Continued) Page STATISTICAL SECTION (Unaudited) Financial Trends: Net Position by Component — Last Ten Fiscal Years 150 Changes in Net Position — Last Ten Fiscal Years 152 Fund Balances of Governmental Funds — Last Ten Fiscal Years 156 Changes in Fund Balance of Governmental Fund — Last Ten Fiscal Years 158 Revenue Capacity: Assessed Value and Actual Value of Taxable Property — Last Ten Fiscal Years 160 2019/20 Use Category Summary 162 Property Tax Dollar Breakdown 163 2019/20 Roll Summary Taxable Property Values 164 Net Taxable Assessed Value History 165 Taxable Sales by Category — Last Ten Calendar Years 166 Property Tax Levies and Collections — Last Ten Fiscal Years 168 Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years 170 Principal Property Tax Payers — Current and Nine Years Ago 172 Sales Value History Single Family Residential Full Value Sales 173 Top 25 Sales Tax Producers 175 Debt Capacity: Ratio of Outstanding Debt by Type — Last Ten Fiscal Years 176 Direct and Overlapping Debt 179 Legal Debt Margin Information — Last Ten Fiscal Years 180 Pledged Revenue Coverage — Last Ten Fiscal Years 182 Demographic and Economic Information: Demographic and Economic Statistics — Last Ten Fiscal Years 185 Operating Information: Full -Time Equivalent City Government Employees by Function/Program — Last Ten Fiscal Years 186 Operating Indicators by Function/Program — Last Ten Fiscal Years 188 Capital Asset Statistics by Function/Program — Last Ten Fiscal Years 190 Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 193 111 241 of 483 �`- CALIF.ORNIA_ T Ne •!Lf- mattSLCEi'y. 1 r INCORPORATES This page intentionally left blank 242 of 483 Office of the City Manager February 25, 2021 To the Honorable Mayor, Members of the City Council, and Citizens of the City of National City: It is our pleasure to submit the Comprehensive Annual Financial Report (CAFR) of the City of National City (the "City") for the fiscal year ended June 30, 2020. The CAFR has been prepared in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by an independent firm of licensed certified public accountants. This report consists of management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. All disclosures necessary to enable the reader to gain an understanding of the City's financial activities have been included, The Pun Group, LLP, an independent auditing firm of certified public accountants, has issued an unmodified ("clean") opinion on the City's financial statements for the fiscal year ended June 30, 2020. The independent auditor's report is presented as the first component of the financial section of this CAFR. Management's Discussion and Analysis (MD&A), which immediately follows the independent auditor's report, provides a narrative introduction, overview, and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. The independent audit of the financial statements of the City was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on internal controls and compliance with legal requirements, with emphasis on those involving the administration of federal awards. The City's Single Audit Report is issued separately. PROFILE OF THE CITY OF NATIONAL CITY The City of National City, incorporated on September 17, 1887, is located in southwestern San Diego County, bordered by the City of San Diego to the north and east, San Diego Bay to the west, and the City of Chula Vista to the south. The City is home to a fairly constant population of about 62,000 residents and occupies 9.2 square miles. Transmittal Letter v 243 of 483 The City is a general law city and operates under the council/manager form of government. The City Council comprises five members, including the mayor, who are elected at Large for four-year overlapping terms. The mayor is the presiding officer of the Council. The citizens of National City also elect the City Treasurer and the City Clerk. The City Council is responsible for enacting ordinances, adopting the budget, establishing policies, reviewing the General Plan, appointing committees, and appointing the City Manager and the City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the Council, overseeing the day-to-day operations of the City, and appointing the heads of departments. The City Attorney is the legal counsel for the City, the Community Development Commission, Parking Authority, and the Successor Agency, and advises the City Council, the City's boards and commissions, and City staff. The City provides a full range of services, which include general government, public safety (police, fire, disaster preparedness, and building inspection), construction and maintenance of the City's infrastructure, economic development, affordable housing, cultural and recreational programs, library and literacy programs, and senior and nutrition services. BUDGETARY CONTROL The annual budget serves as the foundation for the City's financial planning and control. The proposed budget is presented to the City Council for review and adoption prior to the beginning of each fiscal year, July 15`. The Council is required to hold public hearings on the proposed budget prior to adoption. The state mandates a balanced budget. The budget is prepared by fund, department and account. After budget adoption, in accordance with the National City Municipal Code, an increase in a department's total appropriation must be approved by the Council when it involves the use of fund balance or an appropriation of unanticipated or over -realized revenue identified to a specific source. The City Manager is authorized to make budgetary revisions between budget line items within afund, and department directors may transfer appropriations within their respective departments. The budget is regularly monitored and the Council receives quarterly updates. Budget -to -actual comparisons are provided in this report for each major governmental fund for which an annual budget has been adopted. For the General Fund, this comparison is presented on page 102 as part of the basic financial statements for the governmental funds. For governmental funds other than the General Fund, with appropriated annual budgets, this comparison is presented in the governmental fiord subsection of this report, which begins on page 103. FACTORS AFFECTING FINANCIAL CONDITION Economic Profile The national, state, and local economies continued to improve during the first eight months of fiscal year 2020. However, the COVID-19 pandemic caused a severe disruption during the last four months of the year. The unemployment rate in California rose from 3.9 % at the end of February, peaked at 16.4% at the end of May, and fell to 14.9% at the end of June. In San Diego County the unemployment rate rose from 3.1 % at the end of February. peaked at 14.9% at the end of May and fell to 13.7% at the end of June. National City's unemployment rate was 5.4% on March 1 S`, peaked at 20% on May 1", and was at 16.7% on July 1'`. Unaffected so far by the pandemic are assessed property values. which increased for the eighth consecutive year in both National City and the County. Transmittal Letter vi 244 of 483 The impact of the COVID-19 pandemic on the City's fiscal year 2020 revenues was mixed. As shown in Table 1, the City's major revenue sources, sales - and property -related taxes, while growing in recent years, dipped in fiscal year 2020. Assessed valuation growth resulted in a 6.7% increase in Table 2 Source of Taxable Sales by Industry General Consumer Goods 26.5% Restaurants & Hotels 13.1% Fuel & Service Stations 5.6% Food & Drugs 3.2% Business & Industry 5.5% Autos & Transportation 40.1 Building & Construction 6.0%n Property tax revenue, although a much smaller revenue source than sales tax, has again been boosted by the City's all -time - high total assessed valuation. Net taxable assessed value rose by 5.5% in 2020. At the same time, the average price in the City for a detached single-family residential home grew 2.42%, also reaching its historical high. The median home price rose to $466.000 in August 2020. As noted above, the healthy economy prior to the pandemic resulted in recent revenue growth, particularly from sales- and property -related taxes, which represent more than 70% of the General Fund's revenue total. In response to the pandemic, the City has built a conservative budget for fiscal year 2021 that includes the minimum amounts Unassigned fund balance is being used to expenditure requirements. Table 1 Prior Years Sales- & Property -Related Taxes FY 18 $38.5M FY 19 $40.6M FY 20 $39.7M Projection FY 21 $38.4M property tax -related revenues over the prior year, but revenues from the City's sales and use tax and voter - approved 1% district transactions & use ("Proposition `D'") tax decreased by a combined 4.8%, due primarily to interuptions in spending in nearly all sectors during the last three months of the fiscal year. Though the City is heavily dependent upon retail sales -related tax revenues, it has, as Table 2 illustrates, a diversified commercial, retail, and industrial presence, which reduces the impacts of economic downturns and helps it rebound steadily. Looking at the combined sales and district taxes, general consumer goods accounted for 28% of the total followed by the autos & transportation sector at 25%. Twelve percent (12%) of the tax revenue came from the state and local pools as a result of new regulations pertaining to internet sales. Table 3 Fiscal Year Ended June 30 Net Taxable Assessed Property Value History Total Assessed Valuation Increase over Prior Year Percent Increase over Prior Year Cumulative Increase Since 2010 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3,030,591,425 2,991,549,736 2,993,669, 068 3,109,969,070 3,254,789,852 3, 354, 840,139 3,440,631,221 3,588,038,313 3,877,829,380 4,057,201,760 4,279,008,825 0 -39,041,689 2,119,332 116,300,002 144,820,782 100,050,287 85,791,082 147,407,092 289,791,067 179,372,380 221,807,065 0.0% -1.3% Q.1% 3,9% 4.7% 3.1% 2.6% 4.3% 8.1 % 4:6% 5.5% 0 -39,041,689 -36,922,357 79, 377,645 224,198,427 324,248,714 410,039,796 557,446,888 847,237,955 1,026,610,335 1,248,417,400 for infrastructure projects and freezes most staff hiring. bridge the gap between projected revenues and estimated National City has a progressive history of commercial development, including the "Mile of Cars," San Diego County's first major auto park, and Westfield Plaza Bonita, the County's first indoor mall and largest enclosed mall in the South San Diego Bay area. Both attract shoppers from throughout the County and outlying areas and continue to be major revenue sources for the City, directly supporting local programs and services. The Walmart Supercenter is the retail hub of the City's central section, generating significant Transmittal Letter vli 245 of 483 tax revenue and bringing shoppers to nearby stores and restaurants. Despite these successes, however, National City has experienced economic ebbs and flows which have directly impacted service levels to the community. In 2005 and 2006, the City faced revenue shortfalls and structural deficits that led to reductions in services and service hours. In response, National City voters in 2006 approved the "Proposition `D"' transactions & use tax, which produced a high of $72.4 million of revenue infiscal year 20I9, but fell to $11.8 million in fiscal year 2020. During the November 2014 General Election, National City voters approved a measure extending the tax for an additional twenty years. Proposition "D" has allowed the City to continue to provide important programs and services to its citizens. Additional setbacks occurred with the global recession beginning in 2008 and the State of California's dissolution of redevelopment agencies in February 2012. The recession impacted City general purpose revenues and the operations of the City, but the dissolution of redevelopment agencies hampered completion of economic development projects and, in some cases, stopped them all together. National City's Redevelopment Agency was a critical partner in planning and implementing improvements to the City's infrastructure, as well as in meeting the housing needs for low and moderate income residents, and the loss of it resulted in the loss of millions of dollars in revenue needed to address these priorities. Long-term Financial Planning During fiscal year 2020, City management reviewed and updated the City's five-year strategic plan. The strategic plan is approved by the Council every two years. Its purpose is to: • establish a long-range vision and direction for the City; • ensure all participants are working toward the same goals and objectives; • assess/adjust the direction of the organization given the current (and changing) environment; • communicate goals and initiatives of the organization; and • provide a basis for developing a work plan to ensure the goals and initiatives of the Strategic Plan are carried out. City of National City Strategic PIan Goals 2020-2025 Balanced Budget & Economic Development Communication & Outreach Health, Environment, & Sustainability Housing & Community Development Parks, Recreation, & Library Public Safety Transportation Choices & Infrastructure The City updates its five-year Capital Improvement Program (``CIP") annually. The CIP encompasses and highlights some of the City's needed infrastructure improvements. The City has identified approximately $80.0 million in capital needs over the next five years. Funding comes from multiple sources, including available fund balance, general purpose revenues, user fees, special tax revenues, and regional, state, and federal funds. In addition to routine sewer, drainage, and transportation -related projects, the CIP includes improvements to parks, recreation, and community services facilities and municipal buildings and facilities, such as the Library, community center, police department, and fire stations. Recently completed and ongoing projects are described below under "Major Accomplishments and Initiatives." Transmittal Letter vlll 246 of 483 Financial Policies A portion of the fund balance of the General Fund, the "Contingency Reserve," is committed to strengthening the City's ability to withstand unexpected financial emergencies and to accumulate funds for large-scale purchases. The City's reserve policy establishes that the City will strive to accumulate and maintain a Contingency Reserve balance equal to between twenty-five percent (25%) and fifty percent (50%) of a single year's General Fund operating expenditures for these purposes. When combined, the fund balance previously committed by the Council to the Contingency Reserve and the City's unassigned fund balance, the portion of fund balance which is available for use at Council's discretion, are sufficient to meet the Contingency Reserve's minimum threshold. The City's reserve policy also commits a portion of General Fund fund balance to the "Facilities Maintenance Reserve," which was established with the objective of pre -funding the costs of deferred maintenance on City facilities and providing funding for "down payments" on replacement costs. During fiscal year 2020, $3.7 million was allocated to projects, leaving a balance of $2.4 million as of June 30, 2020. The reserve policy establishes a target level for this reserve of between ten (10%) and fifteen percent (15%) of the total acquisition cost of the City's building assets. An initial balance of $2,500,000, or 4.9% of the total acquisition cost, was established during fiscal year 2016. However, the use of $500,000 from the reserve was authorized during fiscal year 2018, to address Tier 1 (high -priority) capital maintenance needs, and the use of $700,000 was approved in fiscal year 2019, to address additional Tier 1 needs. The reserve was augmented in fiscal year 2019 by $4,400,000 as a result of the sale of the City's senior living centers, Kimball & Morgan Towers. After considering this augmentation and actual expenditures during fiscal year 2019, there was a balance at the end of the year of $6.1 million. During fiscal year 2020, $1.8 million was spent, leaving a balance of $4.3 million as of June 30, 2020. In accordance with the reserve policy, the assets maintained in the Facilities Maintenance Reserve, as well as those in the Contingency Reserve, described above, are designated as committed fund balance. In addition to the Contingency Reserve and Facilities Maintenance Reserve, the City maintains a number of other reserves, most of which have accumulated their minimum target balances, as of June 30, 2020. Cash Management Policies and Practices As National City's governing body, the City Council is granted the authority to manage the City's investment program, pursuant to California Government Code Section 53600 et seq. Management responsibility for the cash and investment of City funds is delegated to the Director of Finance and/or Financial Services Officer. The City annually adopts a comprehensive investment policy specifying investment objectives, such as type and term of investments, reporting requirements, and investment oversight. The City's investments generally include US Treasury and Agency securities, Certificate of Deposit Account Registry Service deposits, medium -term corporate notes, negotiable certificates of deposit, commercial paper, the State of California's Local Agency Investment Fund, and the County of San Diego Pooled Money Fund. See Note 2 for a Iist of the City's authorized investments. The investment policy complies in all respects with State Iaws governing deposit and investment of public funds. The objective of the investment portfolio is to enhance the City's cash resources, while meeting the short and long term cash flow demands of the City. To achieve this objective, the portfolio is structured to provide safety of principal and liquidity, while providing a reasonable return on investments. Transmittal Letter ix 247 of 483 MAJOR ACCONIPLLSHMMENTS AND INITIATIVES The City of National City's Capital Improvement Program (CIP) addresses the City's initiatives of enhancing public safety and quality of life, and promoting a healthy community. The following summary contains notable projects that were recently completed, under construction or soon to be under construction. Project names, descriptions, construction costs and completion dates are provided. Infrastructure Completed Projects FY 19-20 Harbison Avenue Traffic Calming ($360, 000; completed September 2019) The project included street resurfacing, drainage improvements, Class III bike sharrows with signage, and. traffic calming chicanes on Harbison Avenue between Division Street and East 4th Street. Trc ffc Signal Upgrades ($3,200, 000; completed February 2020) Projects included various upgrades and modifications to traffic signals and associated infrastructure/equipment Citywide, to enhance traffic safety and operations. Improvements included installation of a new traffic signal at the intersection of Highland Avenue and East 28th Street near Sweetwater High School; modifications to signal poles and heads based on changes to roadway configuration or signal phasing; pedestrian "countdown" signal heads and audible pedestrian crossing systems; new poles, push buttons and pedestrian curb ramps for ADA compliance; new cabinets, controllers, battery back-up and other equipment; communications infrastructure upgrades to support GPS-based emergency vehicle preemption systems and CCTV cameras; and expansion of the City's fiber optic interconnect network for high speed data transfer and connectivity to the City's traffic signal timing management system. E. 16th Street Pavement Rehabilitation ($200, 000; completed June 2020) The project will improve pavement quality on E. 16th Street from "N" Avenue to the west side of 1-805. Improvements include asphalt removal and replacement in dig -out locations, grind and asphalt overlay, ADA improvements, and drainage improvements. Ongoing Projects Paint Avenue Pavenzeni Rehabilitation ($1, 040, 000; completed July 2020) The project will provide a 2" grind and overlay on 1.1 miles of Palm Avenue from Division Street to E. 18th Street within the existing right -of way, ADA improvements, and drainage improvements. The project will also improve pedestrian crossings through installation of accessibility enhancements at the following intersections: 1) Palm Avenue & E. 1St Street; 2) Palm Avenue & E. 14th Street; 3) Palm Avenue & E. 7th Street; 4) Laurel Avenue & E. 1 S` Street; 5) Norton Avenue & E. 1 St Street. Division Street — Euclid Avenue to Harbison Avenue Bicycle Improvements ($600,000; completed September 2020) The project will construct a road diet by reducing Division Street from four lanes to two with a center turning lane. The project will install Class I1 buffered bike lanes in each direction and a pedestrian midblock crossing at the intersection of Division Street and Drexel Avenue, which will include a curb extension and a pedestrian refuge island. The project also includes roadway rehabilitation, and a traffic signal modification at the intersection of Division Street and Harbison Avenue. Transmittal Letter x 248 of 483 Euclid Ave Bicycle & Pedestrian Enhancements ($4, 060, 000; completed December 2020) The project will construct nearly 2 miles of traffic calming, bicycle, and pedestrian enhancements on Euclid Avenue from the northern City limits at Cervantes Avenue south to East 24'h' Street. Project improvements include traffic calming through road diets, curb extensions, median refuge islands, Class II buffered bicycle lanes, Class III bicycle routes, Class IV bikeways with bend -outs, high visibility crosswalks, pedestrian actuated LED -enhanced crosswalk signs, two High -Intensity Activated crosswalks (HAWKs) located near Paradise Valley Hospital, and a new traffic signal at the entrance to Euclid Plaza and Windsor Heights Apartments. P-1 Sewer Upsize Project for Sweetwater High School ($1, 820, 000; completed December 2020) The project includes open trench construction to remove and replace approximately 1490 linear feet of 8 inch diameter vitrified clay pipe (VCP) with I2 inch diameter PVC sewer main, manholes, laterals including pavement restoration, and placing a new sewer access road near the 2800 Block of D Avenue, just west of D Avenue. The work commences approximately 750 feet west of D Avenue and proceeds east for approximately 1500 feet through Sweetwater High School property and ends at F Avenue National City Bicycle Parking Enhancements ($60, 000; completed December 2020) The project installed custom bike corrals throughout the City. The project addresses the need for quality end -of -trip facilities and encourages people to bike to their key destination. Sweetwater. River Bikeway Connections/30th Street Bicycle Facility Improvements ($960,000; estimated completion February 2021) The project includes traffic calming and pedestrian and bicycle enhancements on 30th Street between "D" Avenue and N. 2nd Avenue, connecting existing pedestrian and bicycle facilities near Sweetwater High School to the regional Sweetwater River Bike Path off N. 2nd Avenue. Improvements include street resurfacing, ADA upgrades, approximately 1 mile of Class II bike lanes with signage, traffic signal modifications at Highland Avenue and E. 30th Street, concrete pads at bus stops, and gateway enhancements at both entrances to the Sweetwater River Bike Path (located at W. 33rd Street and N. 2nd Avenue, respectively). Parks & Facilities Completed Projects FY 19-20 1430 Hoover Avenue Tenant Improvements ($1,300, 000; completed December 2019) The project included the purchase of real property containing a 6,400 square foot warehouse located at 1430 Hoover Avenue to be used by City Police and Public Works for secure storage of vehicles, equipment and materials. Tenant improvements included installation of a fire suppression system and ADA upgrades, National City Public Library Chiller Replacement ($360, 000; completed December 2019) The project included Heating Ventilation and Air Conditioning (HVAC) upgrades. The project replaced the existing chilled water system consisting of an air cooled chiller unit and new variable primary pumps at the National City Public Library, located at 1401 National City Boulevard, National City, CA. The project also included providing temporary A/C during construction. Las Palmas Pool Facility Roof Replacement ($100, 000; completed April 2020) The general scope of work is to remove and dispose of the existing roofing system and provide and install a new roofing system on the buildings located at I800 E. 22nd St. Transmittal Letter xi 249 of 483 City Hall Ceiling Replacement Project ($460,000; completed April 2020) The project consisted of the removal and replacement of the existing ceiling grid and tiles on the 2nd, 1st, and basement floors of City Hall. The project also provided new updated light fixtures, HVAC registers and fire suppression sprinkler modifications as necessary, to tie into the new ceiling system. Camacho Gym Roof Replacement ($150, 000; completed May 2020) The project removed and disposed of the existing roofmg system and provided and installed a new roofing system on the building located at 1810 E. 22nd St. Las Patinas Pool Electrical System Replacement (S350, 000; completed July 2020) The project included a new SDG&E 480/277 volt service to the Las Palmas Pool, replacement of all existing electrical equipment in the Las Palmas Pool main electrical room, extension and reconnection of all existing feeders and branch circuits to the new electrical equipment, and a new sub -feed from the Las Palmas Pool electrical system to the Camacho Recreation Center. Ongoing Projects City Hall Boiler Replacement ($100, 000; completed September 2020) The project includes demolishing the existing gas -fired heating hot water boilers, system pumps, and associated components, and replacing with new ones at City Hall. Paradise Creek Park Site Rernediation & Improvements ($5,180, 000; completed December 2020) The project will provide the site reinediation, grading and infrastructure improvements necessary to construct a new 4-acre community park to include walking paths, community garden, playground, and other amenities on the west side of Paradise Creek between W. 22nd Street and W. 19th Street, and reconstruction of Harding Avenue and W. 20d' Street to provide paved roadways. utilities, parking, new sidewalks, and curb ramps for ADA compliance. Paradise Creek Park Expansion ($2,500,000; completed December 2020) The project will develop an approximately 4-acre Community Park with decomposed granite (DG) walking paths, educational and interpretive signage, trees, native vegetation, bioretention areas for storm water treatment, community garden, playground and passive recreational areas, and other amenities on the west side of Paradise Creek between W. 22°d Street and W. 19`1' Street. Paradise Creek Water Duality and Community Enhancements ($1,0150,000; estimated completion March 2021) The project will convey storm water flow collected from Paradise Creek to a biofiltration detention basin for treatment. Improvements include installation of a diversion structure to convey flows from Paradise Creek to the forebay and biofiltration detention basin; slope stability and erosion control measures surrounding the biofiltration basin that may include, but is not limited to, native trees, shrubs, mulch, and/or drought tolerant landscaping, to reduce the sediment pollutant loads from entering the biofiltration detention basin during and after a storm event; installation of an underdrain and an overflow structure downgradient of the biofiltration detention basin; and installation of an emergency overflow spillway. Information on the City's CIP projects can be found at http://nationalcitvproiects.com. Transmittal Letter 250 of 483 AWARDS AND ACKNOWLEDGEMENTS The Government Finance Officers Association of the United States and Canada (GFOA) awarded the Certificate of Achievement for Excellence in Financial Reporting to the City of National City for its CAFR for the fiscal year ended June 30, 2019. The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. In order to receive the award, a governmental unit must publish an easily readable and efficiently organized CAFR that satisfies both GAAP and applicable program requirements. A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the dedication and professionalism of the entire staff of the Department of Finance. We would like to express our gratitude to those who devoted significant hours in preparing the report. We appreciate and commend all the City departments who assisted and contributed materials to this document. And we acknowledge the Mayor and members of the City Council for their interest, dedication, and constant support for planning and conducting the financial operations of the City in a responsible and progressive manner. Respectfully submitted, Brad Raulston City Manager Phillip Davis Director of Finance Transmittal Letter xiii 251 of 483 Directory of City Officials City Council Alejandro Sotelo-Solis Mayor Ron Morrison Vice Mayor Jerry Cano Gonzalo Quintero Mona Rios Councilmember Councilmember Councilmember City Treasurer City Clerk R. Mitchel Beauchamp Michael R. Dalla City Manager City Attorney Brad Raulston Angil Morris -Jones Tony Winney Manuel Rodriguez Frank Parra Minh Duong Roberto Yano Mark Roberts Carlos Aguirre Robert Meteau Armando Vergara Department Heads Assistant City Manager Chief of Police Chief of Emergency Services City Librarian Director of Engineering & Public Works Director of Finance Director of Housing Director of Human Resources Director of Neighborhood Services xiv 252 of 483 `' 1 rr ZivcOnpanArgp CITY 0 GANIZATION CI - City Attorney Community Services Finance Housing Human Resources Information Technology System i National City Residents Mayor & City Council Economic Development City Manager Assistant City Manager City Treasurer Community Development Building Neighborhood Services Planning Police Fire Engineering & Public Works Library { Nutrition Center G�9 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of National City California For its Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2019 P Executive Director/CEO 254 of 483 FINANCIAL SECTION 255 of 483 C IFOqN IA:74r -"TTI UN \L err," 8 Crzkiconportivrirm This page intentionally left blank. 256 of 483 112 THE PUN GROUP ACCOUNTANTS & ADVISORS INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council of the City of National City National City, California Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of National City, California (the "City"), as of and for the year ended June 30, 2020, and the related notes to the basic financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for tite Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 4365 Executive Drive, Suite 7I0, San Diego, California 92122 Tel: 858-242-5100 • Fax: 858-242-5150 www.pungroup.com 257 of 483 To the Honorable Mayor and Members of the City Council of the City of National City National City, California Page 2 Opinions In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2020, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required SupplementaryInformation Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Budgetary Comparison Schedules, Schedule of Changes in the Net Pension Liability and Related Ratios. Schedules of Pension Contributions, and Schedule of Changes in Net OPEB Liability and Related Ratios on pages 5 to 15 and 101 to 112 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Infbrrnafion Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The Introductory Section, the Combining and Individual Non -Major Fund Financial Statements, the Budgetary Comparison Schedules, and tine Statistical Section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Combining and Individual Non -Major Fund Financial Statements and the Budgetary Comparison Schedules on pages 118 through 141 are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Non -Major Fund Financial Statements and the Budgetary Comparison Schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. 258 of 483 To the Honorable Mayor and Members of the City Council of the City of National City National City, California Page 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 25, 2021, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. ‘muiti--, San Diego, California February 25, 2021 3 259 of 483 • • • /4,1 ±TIONAitity auvict zivcoapo.AT.,3 This page intentionally left blank 4 260 of 483 Management's Discussion and Analysis Management of the City of National City (the "City") offers this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2020. We encourage readers to consider the information presented here in conjunction with our letter of transmittal, which can be found beginning on page 5 of this report. The intent of this discussion and analysis is to provide a summarized view of the City's financial performance, as a whole; therefore, readers should also review the basic financial statements and supporting notes to enhance their understanding of the City's financial performance. Overview of the Financial Statements This Management's Discussion & Analysis ("MD&A") is intended to serve as an introduction to the City's basic financial statements, which comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. Government -Wide Financial Statements. The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private -sector business. The government -wide financial statements consist of the Statement of Net Position and the Statement of Activities. The Statement of Net Position presents information on all of the City's assets, liabilities, and deferred inflows and outflows of resources, with the difference reported as net position. Over time, increases or decreases in the City's net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities and Changes in Net Position presents information showing how the government's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the tinning of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). The government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, transportation, community development, health, and culture and recreation. The government -wide financial statements report the activities of the City and its three blended component units: the I-Iousing Authority of the City of National City, the Parking Authority of the City of National City, and the National City Joint Powers Financing Authority. Although legally separate, the component units function, for all practical purposes, as departments of the City and, therefore, have been blended, as part of the primary government. The Successor Agency to the Community Development Commission as the National City Redevelopment Agency ("Successor Agency") is included as a fiduciary component unit, since it would be misleading to exclude it, due to the nature and significance of the relationship between it and the City. The activity of the Successor Agency is reported with the City's fiduciary funds, which are not included in the government -wide statements because the resources of those funds are not available to support the City's own programs. 5 261 of 483 The government -wide financial statements are presented using the accrual basis of accounting, which differs from the modified accrual basis of accounting used for preparing the governmental fired financial statements. Note 1 of the Notes to the Basic Financial Statements section fully describes these bases of accounting. Proprietary funds, discussed below, also are reported using the accrual basis of accounting. The government-wide.financial statements can be found on pages 20-22 of this report. Fund Financial Statements. A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses find accounting to ensure and demonstrate compliance with finance -related legal requirements. In the basic financial statements, the emphasis is on major funds. Each of the City's funds falls into one of three categories: governmental, proprietary, or fiduciary. Governmental Funds. Governmental funds are used to account for the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government - wide _financial statements, the governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City's near -term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers can better understand the long -teen impact of the government's near -tern financing decisions. Reconciliations between the government -wide .financial statements and the governmental fund financial statements are included as part of the basic financial statements. The major reconciling items relate to capital assets and debt. In the governmental funds, acquisitions of capital assets are treated as "expenditures," because, upon purchase of a capital asset, cash used to acquire it is no longer available for other purposes. The issuance of debt provides cash, which is then available for specified purposes. At the end of the fiscal year, the unassigned fund balances in the governmental .fitnd financial statements reflect spendable resources available for appropriation by the City Council. Spendable balances are not presented on the face of the government -wide financial statements. The City maintains thirty-two individual governmental funds, including the General Fund. Information is presented separately in the governmental funds' Balance Sheet and Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund, Housing Fund, Housing Choice Voucher (aka "Section 8") Program Fund, and Sewer Service Fund, all of which are major funds. The City's other governmental funds are considered non -major, and their data are combined into a single, aggregated presentation. The governmental fimd.financial statements can be found on pages 26-32. Individual fund information for each of the non -major governmental funds is provided in the form of combining statements and can be found on pages 1 1 8-141. The City adopts annual budgets for its General, Housing, Housing Choice Voucher Program, and Sewer Service Funds. Budgetary comparison statements, found on pages 102-107, have been provided, to reflect compliance with these budgets. Proprietary Funds. The City maintains two types of proprietary funds: enterprise and internal service. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements, Internal service funds are used to accumulate and allocate costs internally among the City's functions. The City has seven internal service funds: the Facilities Maintenance Fund, the Liability Insurance Fund, the Information Systems Maintenance Fund, the Motor Vehicle 6 262 of 483 Services Fund, the Equipment Replacement Reserve Fund, the Office Equipment Depreciation Fund, and the Telecommunications Revolving Fund. Because these services predominantly benefit governmental, rather than business -type, functions, their financial information is included within the governmental activities in the government -wide financial statements. Proprietary fund financial statements provide the same type of information as the government -wide financial statements (business -type activities), only in more detail. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. The proprietary fund financial statements can be found on pages 35-38. Individual fund data for the internal service funds is provided in the form of supplementary combining statements and can be found on pages 134-141. Fiduciary Funds. Fiduciary funds are used to account for activities for which the City's role is purely custodial. The fiduciary funds of the City are the Agency Funds (comprising the COBRA Insurance Fund and Miscellaneous Deposits Fund) and the Successor Agency Private -purpose Trust Fund. These funds are not reflected in the government -wide financial statements because the resources of the funds are not available to support the City's programs. .The accounting used for fiduciary funds is much like that used for proprietary funds. The fiduciary fund financial statements can be found on pages 43-44, and the combining Statement of Changes in Assets and Liabilities for the Agency Funds can be found on page 145. Notes to the Basic Financial Statements. The Notes to the Basic Financial Statements section provides additional information essential for a full understanding of the data provided in the government -wide financial statements. The Notes to the Basic Financial Statements section begins on page 45. Other Information. In addition to the basic financial statements and accompanying notes, this report presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension and other postemployment benefits ("OPEB") to its employees. Required supplementary information can be found on pages 99-112, The combining statements referred to earlier in connection with non -major governmental funds and internal service funds are presented on pages 118-132 and 134-141, respectively. 7 263 of 483 Government -wide Financial Analysis As noted earlier, over time, a government's net position may serve as a useful indicator of its financial position. Table 1 below presents a summarization of the City's assets, liabilities, deferred outflows and inflows, and net position for its governmental and business -type activities. Current and Other Assets Capital Assets, Net TABLE I NET POSITION For the year ended June 30, 2020 Governmental Business -Type Activities Activities Total 2020 2019 2020 2019 2020 2019 $ 178,036,183 $ 174.177,224 $ - $ - $ 178,036,183 $ 174.177,224 167.651.917 160.921,212 - 167.651,917 160.921,212 TOTAL ASSETS 345.688,100 335,098.436 - 345,688.100 335.098,436 Deferred Outflows of Resources 16,084.044 19,201,843 16.084,044 19.201,843 Current Liabilities 17,594,837 15,153,152 17,594,837 15,153,152 Long-term Liabilities 133,542,664 130.512,382 133.542,664 130,512,382 TOTAL LIABILITIES 151.137,501 145,665,534 - 151,137.501 145.665,534 Deferred Inflows of Resources 2.24-1.332 2.597.755 - - 2_2414.332 2.597,755 Net Position: Net investment in Capital Assets 155.772.400 147.820.375 155,772,400 147,820,375 Restricted 101,152.527 99,839.364 101.152,527 99.839,364 Unrestricted (48,534,616) (41.622.749) (48,534,616) (41,622,749) TOTAL NET POSITION $ 208,390,31.1 $ 206,036,990 $ - $ $ 208,390.31 1 $ 206,036,990 The City's assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources by $208,390,311 at June 30, 2020, an increase of $2,353,321 from June 30, 2019. By far, the largest portion of the City's net position, $155,772,400, is its investment in capital assets (i.e., land, buildings, machinery. equipment, and infrastructure). These capital assets are used to provide services to citizens and, consequently, are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since the capital assets themselves cannot be used to liquidate the liabilities. Another portion of the City's net position, $101,152,527 represents resources that are subject to external restrictions on how they may be used. The remainder of net position, unrestricted net position, comprises the City's net pension liability of ($107,372,845), the total OPEB liability ($5,684,713). Unrestricted net position was $48,534,616, as of June 30, 2020, a decline of $6,911,867, which is due to the City's ongoing effort to reserve funds for OPEB and Pension obligations. 8 264 of 483 TABLE 2 CHANGES IN NET POSITION For the year ended June 30,2020 Governmental Business -Type Activities Activity Total 2020 2019 2020 2019 2020 2019 REVENUES: Program Revenues: Charges for Services $ 25,831,605 $ 20,770,466 $ - $ 2,274,112 $ 25,831,605 $ 23,044,578 Operating Grants and Contributions 16,658,135 14,908,491 - 16,658,135 14,908,491 Capital Grants and Contributions 4,465,126 4,201,520 4,465,126 4,201,520 Total Program Revenues 46,954,866 39,880,477 2,274,112 46,954,866 42,154,589 General Revenues: Taxes: Property Taxes 15,975,053 14,340,418 15,975,053 14,340,418 Sales Taxes 31,268,711 33,196,667 31,268,711 33,196,667 Franchise Taxes 2,330,697 1,966,728 2,330,697 1,966,728 Utility User Tax 678,663 708,451 678,663 708,451 Transient Occupancy Taxes 1,522,714 1,774,843 1,522,714 1,774,843 Total Taxes 51,775,838 51,987,107 51,775,838 51,987,107 Livestment Earnings 2,943,647 2,297,242 10,038 2,943,647 2,307,280 Miscellaneous 65,010 45,017 11,378 65,010 56,395 Total General Revenues 54,784,495 54,329,366 21,416 54,784,495 54,350,782 TOTAL REVENUES 101,739,361 94,209,843 2,295,528 101,739,361 96,505,371 EXPENSES: General Government 13,782,424 14,474,787 13,782,424 14,474,787 Public Safety 45,669,420 41,216,052 45,669,420 41,216,052 Transportation 8,226,143 8,479,861 - 8,226,143 8,479,861 Community Development 15,463,076 13,521,091 - 15,463,076 13,521,091 Health 8,229,336 8,160,870 8,229,336 8,160,870 Culture and Leisure 7,617,459 7,686,697 7,617,459 7,686,697 Depreciation - Interest on Long -teen Debt 398,181 380,596 398,181 380,596 Kimball Towers - 945,180 - 945,180 Morgan Towers 787,266 787,266 TOTAL EXPENSES 99,386,039 93,919,955 1,732,446 99,386,039 95,652,401 2,353,322 289,888 563,082 2,353,322 852,970 TRANSFERS/SPECIAL ITEMS: Transfers Infra -City capital contributions - 528,382 (528,382) Infra -City transfers 65,688,259 - (65,688,259) Special items (Note 14) Gain on disposal of asset for discontinuance of operations 58,293,890 - 58,293,890 TOTAL TRANSFERS/SPECIAL ITEMS 66,216,641 (7,922,751) 58,293,890 CHANGE IN NET POSITION 2,353,322 66,506,529 - (7,359,669) 2,353,322 59,146,860 NET POSITION, BEGINNING OF YEAR 206,036,990 139,530,461 7,359,669 206,036,990 146,890,130 NET POSITION, END OF YEAR $ 208,390,312 $ 206,036,990 $ - $ $ 208,390,312 $ 206,036,990 Table 2 provides a condensed summary of activities of the City's governmental and business -type operations for the period ended June 30, 2020, with the prior fiscal year presented for comparative purposes. The $2,353,322 (1,1%) increase in the City's total net position is all due to the increase in governmental activities of $2,353,322. Governmental and business -type operating results for the current fiscal year are provided in greater detail on page 22. 9 265 of 483 As noted above, net position for governmental activities increased by $2,353,322. The key element of the increase was moderate spending on general government and public safety, and an increase in the City's Program Revenues. Governmental Activities. The City's total revenues from governmental activities were $10 ] ,739361 for the fiscal year ended June 30, 2020, growing $7,529,518, or 8%, compared to the prior year. The largest source of revenue for the City, at 31%, is sales -related taxes (comprising sales & use tax and district transaction & use tax). Revenues from sales -related taxes declined by $1,927,956, or 6.0%. Revenues from other taxes, the most significant of which is property -related taxes (real property taxes, personal property taxes, and property tax in lieu of vehicle License fee ["VLF"]), represented 16.0% of total revenues at the end of the current fiscal year (fiscal year 2020) and increased by $1,634,635, or 11.4%. Capital grants and contributions for governmental activities ended the fiscal year at $4,465,126, for a 6.3%, increase over than the prior year. Charges for services grew by $5,061,218, or 24.4%, compared to the prior year. Lastly, operating grants and contributions increased by $1,749,644, or 11.7%. The City's expenses for governmental activities cover a wide array of services, with $45,669,420, or 46%, for fiscal year 2020 related to public safety and $13,782,424, or 13.9%, to general government. Overall, expenses for governmental activities rose $5,466,084, or 5.8%, with a $4,453,368, or 10.8% growth in Public Safety being the primary driver of the increase. General government includes construction in progress which, in the current fiscal year, was $12,421,855. Details regarding projects contributing to this total may be found in the `Major Accomplishments and Initiatives" section of the letter of transmittal. Financial Analysis of the City's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds. The focus of the City's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The City's classifications of fund balance comprise a hierarchy based on the extent to which the City is bound to observe constraints imposed upon the use of the financial resources of the funds. Fund balance is reported in five categories, based upon the following defining characteristics: • non -spendable — either not in spendable form or legally or contractually required to be maintained intact; • restricted fund— subject to externally enforceable limitations by law, enabling legislation, or limitations imposed by creditors or grantors; • committed — may be spent only for the specific purposes determined by formal action of the government's highest level of decision -making authority (City Council) and, therefore, may be used for different purposes only upon the government's taking the same formal action that imposed the original constraint; • assigned — constrained by the City's intent to utilize fund balance for specific purposes; • unassigned — fund balance not falling in any of the foregoing categories and available for spending at the City's discretion. 10 266 of 483 TABLE 3 GOVERNMENTAL FUNDS SUMMARY For the year ended June 30, 2020 General Fund Housing Choice VouclrerPragrarn Other Governmental Funds Total Governmental Funds Fund 2020 2019 2020 2019 2020 2019 2020 2019 Total Assets $ 55,790,599 $ 55,653,633 $ 549,000 $ 204,565 $ 6,524,767 $ 7,273,020 $ 163,041,014 $ 158,139,203 Total Liabilities Total Deferred Inflows of Resources 6,862,203 6,649,278 36,461 21,067 874,473 1,365,056 14,757,682 11,045,844 3,329 497,939 550,864 Fund Balances Non -spendable 3,926,499 5,010,267 - - - 3,952,304 5,036,072 Restricted 10,092,890 2,304,908 512,539 183,49a 5,666,720 5,926,396 108,940,508 99,839,364 Committed 11,485,066 15,150,517 - - 11,485,066 15,150,517 Assigned 7,129,273 12,865,120 - - 7,129,273 12,865,120 Unassigned 16,294,668 13,673,543 (16,426) (21,761) 16,278,242 13,651,782 Total Fund Balance 48,928,396 49,004,355 512,539 183,498 5,650,294 5,904,635 147,785,393 146,542,855 Total Liabilities and Fund Balances $ 55,790,599 $ 55,653,633 $ 549,000 $ 204,565 $ 6,524,767 $ 7,273,020 $ 163,041,014 $ 158,139,563 The table above summarizes the balance sheet of the City's General Fund and other governmental funds. As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of $147,785,393, an increase of $1,242,538 over the prior year. The restricted component represents the largest portion, $108,940,508, of ending fund balance which includes the two bank notes the City holds pertaining to the sale of Kimball & Morgan Towers, $34,503,560. The General Fund is the principal operating fund of the City. At the end of the current fiscal year, the assigned fund balance of the General Fund decreased to $7,129,273 in comparison to $12,865,120 in the prior fiscal year, an decrease of $5.7 million, General Fund revenues grew $2,467,947 with increases of $210,897 in taxes revenues, $116,387 in fines and forfeitures, $398,350 in use of money. Intergovernmental, charges for services and other revenues increased by $1,333,250, $527,953 and $53,712, respectively. General Fund expenditures decreased $399,333, with a decrease of $843,676 in general government functions. The fund balance classification for the General Fund and other major funds can be found on page 97, in Note 13 of the Notes to Financial Statements section. The Sewer Service Fund total fund balance increased by $3,344,315 due to a large increase in revenues in FY20. Housing Choice Voucher Fund revenues increased resulting in an increase of the Housing Choice Voucher Fund fund balance to $329,041. Proprietary Funds. As noted earlier, the City's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. Factors concerning the finances of these funds have already been addressed in the discussion of the City's business -type activities, 11 267 of 483 General Fund Budgetary Highlights TABLE4 For the year ended June 30, 2020 Original Budget Final Budget Total Revenues *Expenditures: General Government Public Safety Transportation Conununity Development Health Culture and Leisure Capital Outlay Principal Interest on Long-term Debt Total Expenditures Revenues Over (Under) Expenditures. Other Financing Sources Special Items Actual Amounts Variance with Final Budget $ 55,057,718 $ 55.144.718 $ 61,848,951 $ 6.704.233 6,565,962 12,834,935 9,274,169 3.560,766 40,141,993 40,199,561 38.573,445 1,626.116 3,623,185 3,950.113 3,283,198 666,915 417,008 492,357 477,457 14,900 99,528 99,528 - 99.528 4,224,070 4,244,085 3.666.563 577,522 5,028,000 6,450,595 3.343,679 3,106,916 256,013 256.013 342.616 (86,603) 206.224 206.224 206,224 - 60,561,983 68.733,411 59,167,351 9,566.060 (5,504,265) (13,588,6931 2,681,600 16.270,293 (2.769,051) (2.769.051) Net Change in Fund Balances (5,504.265) (13,588.693) Beginning Fund Balance Ending Fund Balance Actual amounts differed from the final General Fund budget as follows: (87,451) 13,501,242 49.015,847 $ 48,928,396 • Actual revenues were $6,704,233 more than the final budget. While Licensing revenues were short of their budgeted estimate, overall receipts for all other revenue categories exceeded their budgeted amounts. ■ Actual expenditures were less than their overall budgeted amount by $9,566,060. The most significant variance of $3,106,916 is attributable to unspent appropriations for capital projects not completed during the year (and, thus, are carried over to the following fiscal year). There was also significant savings in General Government and Public Safety. 12 268 of 483 Capital Asset and Debt Administration Capital Assets. The City's investment in capital assets (net of accumulated depreciation) for governmental and business -type activities, as of June 30, 2020, amounted to $167,410,021. This investment includes land, rights of ways, construction in progress, buildings and improvements, machinery, and infrastructure. Infrastructure assets represented 47.44% of total combined assets. TABLE 5 CAPITAL ASSETS AT YEAR-END (NET OF DEPRECIATION) For the year ended June 30, 2020 Governmental Business -Type Activities Activities Total 2020 2019 2020 2019 2020 2019 Land $ 24,402,009 $ 24,402,009 $ $ - $ 24,402,009 $ 24,402,009 Right-of-way 4,245,088 4,245,088 - $ 4,245,088 4,245,088 Construction in progress 21,768,254 13,270,929 - $ 21,768,254 13,270,929 Buildings and improvements 28,809,498 30,916,183 - $ 28,809,498 30,916,183 Machinery and equipment 7,745,484 7,831,464 - $ 7,745,484 7,831,464 Infrastructure 79,423,077 79,175,390 - $ 79,423,077 79,175,390 Radio Rights 1,016,611 1,080,149 - $ 1,016,611 1,080,149 TOTALS $ 167,410,021 $ 160,921,212 $ $ $ 167,410,021 $ 160,921,212 Construction in progress totaled $21,768,254, which included new spending of $12,421,855 and transfers to completed projects of $3,924,530. Depreciation expense during the fiscal year was $7,177,900 for governmental activities. Additional information on the City's capital assets can be found in Note 5 on pages 74-75 of this report, 13 269 of 483 Long-term Debt. At the end of the current fiscal year, the City had total debt outstanding of $32,709,097 including bonded debt of $11,913,117. TABLE6 OUTSTANDING LONG-TERM DEBT For the year ended June 30, 2020 Governmental Business -Type Activities Activities Total 2020 2019 2020 2019 2020 2019 2012 General Obligation Refunding Bonds $ 3,080,000 $ 3.360.000 $ $ $ 3.080,000 $ 3,360,000 Bond Premium 12,838 14.443 - 12,838 14,443 HUD 108 Bonds, Series A 2.175,000 2.630,000 - 2,175,000 2,630,000 2017 Clean Energy Bonds 1,800.000 1,800,000 - I.800.000 1,800,000 2017 Lease Revenue Bonds 3.273.024 3,407.479 3?73,024 3,407,479 Notes Payable 803,972 925,530 803.972 925.530 Capital Leases 768.283 1.001.185 - 768,283 1,001,185 Compensated Absences 3,755,266 3,940,063 3.755,266 3,940,063 Claims Payable 11,356.000 10,568,000 - - 11,356,000 10,568,000 OPEB Liability 5,684.713 5.302.749 - 5,684.713 5,302.749 TOTALS $ 32,709,096 $ 32,949,449 $ - $ - $ 32.709,096 $ 32.949.449 The City's total debt decreased by $240,352, or 0.7%, during the fiscal year 2020. There is a decrease in compensated absences of $184,796, but increases in Claims Payable and the OPEB Liability. The net decrease is due primarily from normally scheduled payments of the City's bonded indebtedness. The City's general obligation bond ratings are "A+-" Additional information on the City's long-term debt can be found in Note 6 beginning on pages 75-81 of this report. Economic Factors and Next Year's Budget Many economic factors were considered in the development of the City's fiscal year 2021 budget. The most significant factors are described below. Total assessed valuation in the City continues to increase despite the anticipated negative impacts on the sales tax and other revenues caused by the COV1D-19 pandemic. The continued high volume of real estate sales is responsible for the increase in total assessed valuation. As a result, the projected increase in property tax revenues in the fiscal year 2021 budget is approximately 4.0% above the actual revenues received in fiscal year 2020. Sales & use tax and district transactions & use tax revenues are budgeted at a combined $28.6 million for fiscal year 021, a 5.4% decrease from fiscal year 2020's actual revenues, reflecting a continued slowing in the retail sales environment due to the COVID-19 pandemic. Fiscal year 2020 was the fourteenth full year of collection of the City's 1% district transactions & use tax. The tax measure ("Proposition `D"') was approved by National City voters in June 2006 and became effective in October 2006. The initial measure was effective for a period of ten years; however, in November 2014, voters approved a measure to extend the tax for an additional twenty years. The tax now generates approximately $12 million in revenue annually, allowing the City to continue to provide important programs and services to its citizens. 14 270 of 483 California Public Employees Retirement System (Ca1PERS) employer contribution rates are expected to continue to be the primary driver of increases in the City's operating costs. Previous changes to the employer contribution methodology and phased -in reductions to the discount rate have significantly impacted the City's pension costs. And beginning in fiscal year 2021, CalPERS will implement 20-year amortization for future gains and losses, replacing the current 30-year schedule. To address the City's unfunded pension liability and mitigate the impact of increasing CalPERS contributions, the City established an irrevocable supplemental pension trust fund in fiscal year 2018 with initial funding of $1.0 million. The trust was augmented by $650,000 in fiscal year 2019, and $4.4 million was added in fiscal year 2020, bringing the balance of the trust, including investment earnings, to more than $6.1 million. Also in fiscal year 2020, the City established an irrevocable other post -employment benefits (OPEB) trust fund with initial funding of $3.1 million. Requests for Information This financial report is designed to provide a general overview of the City's finances for all those interested. Questions concerning any information provided in this report or requests for additional financial information should be addressed to the Director of Finance, 1243 National City Boulevard, National City, CA 91950. 15 271 of 483 CALIFORNIA NATIONAL e e 'NCORPORATED This page intentionally left blank 16 272 of 483 BASIC FINANCIAL STATEMENTS N JN__,XU_Ctrir \TI au:3 zucoRpoRATop i 7 273 of 483 \ XL- . eller C7..‘ntrcoraponiero This page intentionally left blank. 18 274 of 483 GOVERNMENT -WIDE FINANCIAL STATEMENTS 19 275 of 483 City of National City Statement of Net Position June 30, 2020 Governmental Activities ASSETS Current assets: Cash and investments $ 108,231,655 Receivables: Accounts 2,617,769 Taxes 5,407,426 Interest 248,062 Due from other governments 414,723 Land held for resale 5,154,182 Inventories and prepaid items 80,642 Total current assets 122,154,459 Noncurrent assets: Restricted cash and investments: Section 115 trust 9,537,721 Held by fiscal agent 10,334 Loans receivable 46,333,669 Non -depreciable capital assets 50,415,351 Depreciable capital assets, net 117,236,566 Total noncurrent assets 223,533,641 Total assets 345,688,100 DEFERRED OUTFLOWS OF RESOURCES Deferred loss on refunding 33,600 Pension -related deferred outflows 15,872,047 OPEB-related deferred outflows 178,397 Total deferred outflows of resources 16,084,044 See accompanying Notes to the Basic Financial Statements. 20 276 of 483 City of National City Statement of Net Position (Continued) June 30, 2020 Governmental Activities LIABILITIES Current liabilities: Accounts payable $ 6,055,588 Due to other governments 323,647 Accrued liabilities 1,940,240 Interest payable 89,060 Unearned revenue 1,805,319 Compensated absences - due within one year 2,397,792 Claims payable - clue within one year 3,779,696 Long-term debt - due within one year 1,203 495 Total current liabilities 17,594,837 Noncurrent Liabilities: Developer deposits 841,705 Total OPEB Liability 5,684,713 Aggregate net pension liability 107,372,845 Compensated absences - due in more than one year 1,357,475 Claims payable - due in more than one year 7,576,304 Long-term debt - due in more than one year 10,709,622 Total noncurrent liabilities 133,542,664 Total liabilities 151,137,501 DEFERRED INFLOWS OF RESOURCES Pension -related deferred inflows OPEB-related deferred inflows 2,112,577 131,755 Total deferred inflows of resources 2,244,332 NET POSITION Net investment in capital assets Restricted: General services Community development Public safety Transportation IIousing Debt service Capital projects Investment in Section 115 trust Total restricted Unrestricted (deficit) Total net position 155,772,400 20,181,707 20,000 223,085 13 75,339,888 1,599,441 2,038,653 1,749,740 101,152,527 (48,534,616) $ 208,390,311 See accompanying Notes to the Basic Financial Statements. 21 277 of 483 City of National City Statement of Activities and Changes in Net Position For the Year Ended June 30, 2020 Functions/Programs Primary government: Governmental activities: General government Public safety Transportation Community development Health Culture and leisure Interest on long-term debt Total governmental activities Expenses $ 13,745,988 45,669,420 8,262,579 15,463,076 8,229,336 7,617,459 398,181 Program Revenues Charges for Services Operating Grants and Contributions $ 1,633,483 $ 4,588,977 2,559,252 5,390,051 11,046,120 613,722 99,386,039 25,831,605 General revenues: Taxes: Property taxes Sales taxes • Franchise taxes Utilities user taxes Transient occupancy taxes Total taxes Investment earnings Miscellaneous Total general revenues Change in net position Net position - beginning of year Net position - end of year Capital Grants and Contributions 51,100 $ 1,245,153 15,234,092 15,542 112,248 16,658,135 Net (Expense) Revenue and Changes in Net Position Governmental Activities $ (12,061,405) (39,835,290) 4,465,126 (1,238,201) 5,161,067 2,832,326 (6,891,489) (398,181) 4,465,126 (52,431,173) 15,975,053 31,268,711 2,330,697 678,663 1,522,714 51,775,838 2,943,647 65,010 54,784,495 2,353,322 206,036,989 $ 208,390,311 See accompanying Notes to the Basic Financial Statements. 22 278 of 483 FUND FINANCIAL STATEMENTS - . cp41F013tN!A....„---,,,..... NATI Q't? ZAi COB P OR NT 11;-.; 279 of 483 • CAL1FOINlA 'Amon PonitTED This page intentionally left blank. 24 280 of 483 GOVERNMENTAL FUND FINANCIAL STATEMENTS General Fund — This is the primary operating fund of the City. It is used to account for all revenues and expenditures that are not required to be accounted for in another fund. Housing Fund - This fund is used to account for activities of housing assistance and assistance to low income families. Housing Choice Voucher Program ("Section 8") Fund - This fund is used to account for the activities of housing assistance program funded by HUD. The program provides rental assistance to low income families by subsidizing a portion of the rent directly to landlords on behalf of very low income households. Sewer Service Fund - This fund is used to account for the collection of sewer connection fees and monthly sewer service charges used for the construction and maintenance of City sewers. Other Special Revenue Fund - This represents a combination of minor and Less active funds that the City has combined for reporting purposes. Housing Authority Special Revenue Fund - This fund is used to account for the activities of the development of a viable urban community by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons with low and moderate incomes. 25 281 of 483 City of National City Balance Sheet Governmental Funds June 30, 2020 Major Funds _ Housing Choice Housing Voucher Program Sewer Service General Special Revenue Special Revenue Special Revenue Fund Fund Fund Fund ASSETS Cash and investments $ 30,216,442 $ 452,068 $ 444,404 $ 19,872,119 Receivables: Accounts 2.184,135 104,596 35,370 Taxes 5,198,287 - - 11,699 l nterest 131,503 1,083 44,523 Loans 10.596,900 - Due from other funds 4,382,482 Due from other governments 213,530 3,765 Inventories and prepaid items 17,317 - - Land held for resale 3.909.182 1,245.000 Restricted cash and investments: Investment in Section 115 trust 9,537.721 Total assets $ 55,790.599 $ 12,295,051 $ 549.000 $ 19,967,476 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable $ 2,889,110 $ 956 $ 11,938 $ 182,221 Due to other governments 323,647 Accrued liabilities 1,727,163 5.391 24,523 24,418 Due to other funds - - Deposits 118,052 Unearned revenue 1,804.231 - Total liabilities 6,862.203 6,347 36,461 206,639 Deferred inflows of resources: Unavailable revenues Total deferred inflows of resources Fund Balances: Nonspendable 3,926.499 - - - Restricted 10,092.890 12,288,704 512,539 19,760,837 Committed 11,485,066 - - Assigned 7,129.273 Unassigned 16,294,668 Total fund balances 48,928.396 12,288,704 512,539 19,760,837 Total liabilities, deferred inflows of resources, and fund balances $ 55,790,599 $ 12,295,051 $ 549.000 $ 19,967,476 See accompanying Notes to the Basic Financial Statements. 26 282 of 483 City of National City Balance Sheet (Continued) Governmental Funds June 30, 2020 Major Funds Housing Other Authority Other Total Special Revenue Special Revenue Governmental Governmental Fund Fund Funds Funds ASSETS Cash and investments $ 6,566,381 $ 26,646,950 $ 4,808,359 $ 89,006,723 Receivables: Accounts - 45 188,758 2,512,904 Taxes 11,747 185,693 5,407,426 Interest 3,709 59,669 7,575 248,062 Loans - 34,503,560 1,233,209 46,333,669 Due from other funds - 4,382,482 Due from other governments 96,255 101,173 414,723 Inventories and prepaid items - 25,805 43,122 Land held for resale - 5,154,182 Restricted cash and investments: Investment in Section 115 trust 9,537,721 Total assets $ 6,678,092 $ 61,236,029 $ 6,524,767 $ 163,041,014 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable $ 1,695,147 $ 48,022 $ 636,895 $ 5,464,289 Due to other governments - - 323,647 Accrued liabilities 14,853 143,892 1,940,240 Due to other funds 4,289,884 - 92,598 4,382,482 Deposits 635,380 88,273 - 841,705 Unearned revenue - - 1,088 1,805,319 Total liabilities 6,635,264 136,295 874,473 14,757,682 Deferred inflows of resources: Unavailable revenues Total deferred inflows of resources 497,939 497,939 497,939 497,939 Fund Balances: Nonspendable - 25,805 3,952,304 Restricted 42,828 60,575,990 5,666,720 108,940,508 Committed - - 11,485,066 Assigned 7,129,273 Unassigned (16,426) 16,278,242 Total fund balances 42,828 60,601,795 5,650,294 147,785,393 Total liabilities, deferred inflows of resources, and fund balances $ 6,678,092 $ 61,236,029 $ 6,524,767 $ 163,041,014 See accompanying Notes to the Basic Financial Statements. 27 283 of 483 \ C AL 1 FO Fjt N IA NNTA ZIVCORPORATI This page intentionally left blank. 284 of 483 City of National City Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Position June 30, 2020 Total Fund Balances - Total Governmental Funds $ 147,785,393 Amounts reported for governmental activities in the Statement of Net Position were different because: Capital assets used in governmental activities were not financial resources and therefore were not reported in governmental funds. Government -wide Statement of Net Position 167,651,917 Less: internal service fiends' capital assets (6,556,9I6) Total capital assets 161,095,001 Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in Governmental Funds Balance Sheet (net of $9,399 in internal service funds). (79,661) Long-term liabilities were not due and payable in the current period and therefore were not reported in the governmental funds. Amount reported in Government -wide Statement of Net Position: Compensated absences - due within one year (2,397,792) Compensated absences - due in more than one year (1,357,475) Claims payable - due within one year (3,779,696) Claims payable - due in more than one year (7,576,304) Long-term debt - due within one year (1,203,495) Long-term debt - due in more than one year (10,709,622) Aggregate net pension liability (107,372,845) Net OPEB liability (5,684,713 Less: amount reported in internal service funds Capital leases payable - due within one year Capital leases payable - due in more than one year Compensated absences - due within one year Claims payable - due within one year Claims payable - due in more than one year (140,081,942) 137,332 622,162 3,779,696 7,576,304 12,115,494 Net long-term liabilities (127,966,448) Deferred outflows of resources related to pensions are not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds. Deferred outflows of resources related to OPEB are not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds. Deferred inflows of resources related to pensions are not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds. Deferred inflows of resources related to OPEB are not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds. Deferred amounts on refunding ate not available for current period and, therefore, are deferred in the governmental funds or not recorded in the governmental funds. Unavailable revenues are deferred in the governmental funds, but are recognized as revenues in the Government - wide statement of Net Position Internal service funds were used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds were included in governmental activities in the Government -wide Statement of Net Position. Net Position of Governmental Activities 15,872,047 178,397 (2,112,577) (131,755) 33,600 497,939 13,218,375 $ 208,390,311 See accompanying Notes to the Basic Financial Statements. 29 285 of 483 City of National City Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds For the Year Ended June 30, 2020 Major Funds Housing Choice Housing Voucher Program Sewer Service General Special Revenue Special Revenue Special Revenue Fund Fund Fund Fund REVENUES: Taxes $ 48,327,441 $ Licenses and permits 1,096,395 Fines and forfeitures 2,945.717 Use of money and property 2.516.371 Intergovernmental 2,889,985 Charges for services 3,101.961 Other revenues 971,081 Total revenues EXPENDITURES: Current: General Government Public Safety Transportation Community Development Health Culture and Leisure Capital outlay Debt service: Principal Interest and fiscal charges Total expenditures REVENUES OVER (UNDER) EXPENDITURES 264,252 432,791 28, 198 102 500,401 12,983,051 - 9,197,459 225.942 846,147 61,848,951 264.252 13,237,293 10,976,798 9,237,733 38,573,445 3,319,634 477,457 170.108 12,908,252 3,666,563 3,343,679 342,616 206.224 59,167,351 170.108 2,900 14,191 7,255,002 360,390 12,908,252 7.632,483 2,681.600 94,144 329,041 3,344.315 OTHER FINANCING SOURCES (USES): Loss on sale ofland held for resale (589,700) Pass -through payment to other agencies (631,285) Transfers in 5,500 Transfers out (1.553.566) Total other financing sources (uses) (2.769.051) CHANGES IN FUND BALANCES (87.451) 94.144 329,041 3,344,315 FUND BALANCES: Beginning of year (as restated. Note 14) 49,015.847 12,194,560 183.498 16,416,522 End of year $ 48,928,396 $ 12,288,704 $ 512.539 $ 19.760,837 See accompanying Notes to the Basic Financial Statements 30 286 of 483 City of National City Statement of Revenues, Expenditures, and Changes in Fund Balance (Continued) Governmental Funds For the Year Ended June 30, 2020 Major Funds Housing Other Authority Other Total Special Revenue Special Revenue Governmental Governmental Fund Fund Funds Funds REVENUES: Taxes $ 441,721 $ $ 4,906,770 $ 53,675,932 Licenses and permits 1,201,526 - 2,730,712 Fines and forfeitures 29,700 - 5,322 3,008,937 Use of money and property 38,036 774,795 126,751 4,220,708 Intetgovemmental 5,003,655 2,110,589 22,987,280 Charges for services 628,238 12,927,658 Other revenues 68,495 23,563 105,831 2,241,059 Total revenues 7,411,371 798,358 7,255,263 101,792,286 EXPENDITURES: Current: General Government 1,097,537 - 400,405 10,738,575 Public Safety 681,389 52,073 39,306,907 Transportation 15,428 1,433,504 4,782,757 Community Development 26,225 173,191 440,110 14,195,343 Health 108,071 852,529 8,215,602 Culture and Leisure 186,249 3,172,354 7,025,166 Capital outlay 7,893,152 1,964,708 13,561,929 Debt service: Principal 735,000 1,077,616 Interest and fiscal charges 213,644 • 419,868 Total expenditures 10,008,051 173,191 9,264,327 99,323,763 REVENUES OVER (UNDER) EXPENDITURES (2,596,680) 625,167 (2,009,064) 2,468,523 OTHER FINANCING SOURCES (USES): Loss on sale of land held for resale (589,700) Pass -through payment to other agencies - - (631,285) Transfers in 273,976 1,766,215 2,045,691 Transfers out (5,500) (491,625) - (2,050,691) Total other financing sources (uses) 268,476 (491,625) 1,766,215 (1,225,985) CHANGES IN FUND BALANCES (2,328,204) 133,542 (242,849) 1,242,538 FUND BALANCES: Beginning of year (as restated, Note 14) 2,371,032 60,468,253 5,893,143 146,542,855 End of year $ 42,828 $ 60,601,795 $ 5,650,294 $ 147,785,393 See accompanying Notes to the Basic Financial Statements. 31 287 of 483 City of National City Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government -Wide Statement of Activities and Changes in Net Position For the Year Ended June 30, 2020 Net Change in Fund Balances - Total Governmental Funds Amounts reported for govemmental activities in the Statement of Activities were different because: Governmental funds reported capital outlay as expenditures. However. in the Government -Wide Statement of Activities and Changes in Net Position, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This was the amount of capital assets recorded in the current period (net of $487,906 added in internal service funds). $ 1242,538 13.561,929 Depreciation expense on capital assets was reported in the Govemment-Wide Statement of Activities and Changes in Net Position, but they did not require the use of eurrent financial resources. Therefore, depreciation expense was not reported as expenditures in the Governmental Funds: This amount did not include the depreciation expense for Internal Service Funds in the amount of $949,207. (6.228.693) The net effect of various miscellaneous transactions involving capital assets (i.e. sales, trade-ins, and donations) increased net position. (141,229) Repayment of Tong -term liabilities was an expenditures in governmental funds, but the repayment reduced long-term liabilities in the Government -Wide Statement of Net Position (net of repayment in internal service funds). Principal payment of long-term debt 1.077,616 Amortization expenses were reported in the Government -Wide Statement of Activities and Changes in Net Position, but they did not require the use of current financial resources. Therefore, amortization expenses were not reported as expenditures in the Governmental Funds. Bond premium 1,605 Deferred amount on refunding (4,200) Certain long-terni liabilities were reported in the Government -Wide Statement of Activities and Changes in Net Position, but they did not require the use of current financial resources. Therefore, longterm liabilities were not reported as expenditures in governmental funds. These amounts represented the changes in long-term liabilities from prior year. Changes in compensated absences 184,796 Changes in net OPEB liabilities (381,964) Change in net pension liability reported in the Statement of Activities does not require the use of current financial resources and, therefore, is not reported as an expenditure in governmental Funds (Note 10). (4.482,136) The net effect of various miscellaneous transactions involving pension plans (i.e. deferred inflow/outflow amortization, contributions after measurement date) decreased net position. (3,07-2,757) The net effect of various miscellaneous transactions involving the OPEB plan (i.e. deterred inflow/outflow amortization) decreased net position. 262,582 Unavailable revenues in the governmental funds were reported as revenue in the Government -Wide Statement of Net Position as follows: Investment earnings (52,925) Interest expense on long-term debt was reported in the Govenunent-Wide Statement of Activities and Changes in Net Position, but it did not require the use of current financial resources. This amount represented the change in accrued interest from prior year. Internal service funds were used by management to charge the costs of certain activities to individual funds. The net revenue of internal service funds was reported with governmental activities. Change in Net Position of Governmental Activities $ 2,353,322 24181 311,879 See accompanying Notes to the Basic Financial Statements. 32 288 of 483 PROPRIETARY FUND FINANCIAL STATEMENTS Internal Service Funds are funds used to account for interdepartmental operations where it is the stated intent that costs of providing services to the departments of the City on a continuing basis be financed or recovered primarily by charges to the user departments. 33 289 of 483 \ zaraoRpoRATsi3 This page intentionally left blank. 34 City of National City Statement of Net Position Proprietary Funds June 30, 2020 Governmental Activities Internal Service Funds ASSETS Current assets: Cash and investments $ 19,224,932 Accounts receivable 104,865 Prepaid items and deposits 37,520 Total current assets 19,367,317 Noncurrent assets: Restricted cash and investments Capital assets: Depreciable assets, net of accumulated depreciation Total capital assets, net Total noncurrent assets Total assets LIABILITIES AND NET POSITION Liabilities: Current liabilities: Accounts payable and accrued liabilities Salaries payable Interest payable Capital leases payable - due within one year Compensated absences - due within one year Claims payable - due within one year Total current liabilities Noncurrent liabilities: Capital leases payable - due in more than one year Claims payable - due in more than one year 10,334 6,556,916 6,556,916 6,567,250 25,934,567 591,299 9,399 137,332 3,779,696 4,517,726 622,162 7,576,304 Total noncurrent liabilities 8,198,466 Total liabilities 12,716,192 Net Position: Net investment in capital assets Restricted: Debt service Total restricted Unrestricted Total net position 5,797,422 10,334 10,334 7,410,619 $ 13,218,375 See accompanying Notes to the Basic Financial Statements. 35 291 of 483 C A4..11F0 TILUN 1 8 QV C---..'N'conPoRAT11-17) This page intentionally left blank. 292 of 483 City of National City Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds For the Year Ended June 30, 2020 OPERATING REVENUES: Charges for services Other Governmental Activities Internal Service Funds $ 12,015,963 14,681 Total operating revenues 12,030,644 OPERATING EXPENSES: Operations and administration 6,636,742 Maintenance 4,097,094 Depreciation 949,207 Total operating expenses 11,683,043 OPERATING INCOME (LOSS) 347,601 NONOPERATING REVENUES (EXPENSES): Interest expense Total nonoperating revenues (expenses) INCOME (LOSS) BEFORE TRANSFERS TRANSFERS Transfers in Total transfers CHANGES IN NET POSITION NET POSITION: Beginning of year End of year (40,722) (40,722) 306,879 5,000 5,000 311,879 12,906,496 $ 13,218,375 See accompanying Notes to the Basic Financial Statements. 37 293 of 483 City of National City Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2020 Governmental Activities Internal Service Funds CASII FLOWS FROM OPERATING ACTIVITIES: Cash received from other funds $ 11,973,359 Cash payments for goods and services (10,370,127) Other operating revenues 14,681 Net cash provided by operating activities 1,617,913 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Principal paid on capital lease (146,300) Acquisition of capital assets (487,906) Interest paid (42,339) Net cash provided by (used in) capital and related financing activities (676,545) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in Net cash provided by noncapital financing activities 5,000 5,000 Net change in cash and cash equivalents 946,368 CASH AND CASII EQUIVALENTS: Beginning of year End of year 18,288,898 $ 19,235,266 RECONCILIATION TO STATEMENT OF NET POSITION: Cash and investments $ 19,224,932 Restricted cash and investments 10,334 Total cash and cash equivalents $ 19,235,266 See accompanying Notes to the Basic Financial Statements. 38 294 of 483 City of National City Statement of Cash Flows (Continued) Proprietary Funds For the Year Ended June 30, 2020 Governmental Activities Internal Service Funds RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income $ 347,601 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 949,207 Changes in operating assets and liabilities: Accounts receivable (42,604) Prepaid items and deposits (10,925) Accounts payable and accrued liabilities (377,516) Salaries payable (35,850) Compensated absences Claims payable 788,000 Total adjustments 1,270,312 Net cash provided by operating activities $ 1,617,913 See accompanying Notes to the Basic Financial Statements. 39 295 of 483 Ira TION Lelerr 3-1°111 zarcoRpou Aer This page line:aim:ally left blank. 40 296 of 483 FIDUCIARY FUND FINANCIAL STATEMENTS Agency Fuud — This fund is used to account for assets held by the City in a trustee capacity for individuals, private organizations, other governments and/or other funds. The Successor Agency to the Community Development Commission as the National City Redevelopment Agency ("Successor Agency") Private -Purpose Trust Fund — This fund is used to account for monies received from the San Diego County Auditor Controller for the payment of the enforceable obligations of the former National City Redevelopment Agency. These funds are restricted for the sole purpose of payment of items on an approved Recognized Payment Obligation Schedule (RODS). 41 297 of 483 cm,IF0151NriA 1- N T ON rAIL nicoaponAms13 This page intentional& left blank. 42 298 of 483 City of National City Statement of Fiduciary Net Position Fiduciary Funds June 30, 2020 Successor Agency Agency Private -Purpose Funds Trust Fund ASSETS Cash and investments $ 2,013,893 $ 7,610,768 Receivables: Account 20,993 Interest 33,122 Loans 370,984 Restricted cash and investments with fiscal agent 1,464 Capital asset, net accumulated depreciation 450,000 Total assets $ 2,013,893 8,487,331 DEFERRED OUTFLOWS OF RESOURCES Deferred amount on refunding Total deferred outflows of resources 5,759,767 5,759,767 LIABILITIES Accounts payable and accrued liabilities $ 106,523 559,296 Interest payable 437,258 Deposits payable 1,907,370 Long-term debt - due within one year - 3,194,000 Long-term debt - due in more than one year 39,067,000 Developer deposits 25,000 Total liabilities $ 2,013,893 43,282,554 NET POSITION Held in trust (29,035,456) Total net position $ (29,035,456) See accompanying Notes to the Basic Financial Statements. 43 299 of 483 City of National City Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended June 30, 2020 Successor Agency Private -Purpose Trust Fund ADDITIONS: Property taxes $ 1,204,954 Investment income 192,985 Total additions 1,397,939 DEDUCTIONS: Enforceable obligations 2,280,073 Community development 1.468,213 Administrative expenses 242,877 Total deductions 3,991,163 Changes in Net Position (2,593,224) NET POSITION: Beginning of year End of year (26,442,232) $ (29.035.456) See.accompanying Notes to the Basic Financial Statements. 44 300 of 483 NOTES TO THE BASIC FINANCIAL STATEMENTS it 45 301 of 483 CALIF,ORNIA w\TIo�N�°�L�-C��r`�1�Ty T3E3V INCORPORATED This page intentionally left blank 46 302 of 483 City of National City Index to the Notes to the Basic Financial Statements For the Year Ended June 30, 2020 NOTE DESCRIPTION PAGE 1 Reporting Entity and Summary of Significant Accounting Policies 2 Cash and Investments 3 Loans Receivable 4 Interfund Balances and Transactions 5 Capital Assets 6 Long -Term Debt 7 Compensated Absences 8 Other Required Fund Disclosures 9 Self -Insurance Accrued Liabilities 10 Pension Plans 11 Other Postemployment Benefits 12 Commitments and Contingencies 13 Classification of Fund Balances 14 Prior Period Adjustments 15 COVID-19 16 Subsequent Events 49 64 70 73 74 75 82 82 83 84 92 96 97 98 98 98 47 303 of 483 CALIF.ORNI.A its LA _)N N C y r L-NCORPORATEf This page intentionally !eft blank 304 of 483 City of National City Notes to the Basic Financial Statements For the Year Ended June 30, 2020 Note 1-- Reporting Entity and Summary of Significant Accounting Policies The basic financial statements of the City of National City, California (the "City") have been prepared in conformity with accounting principles generally accepted of the United States of America ("US GAAP") as applied to governmental agencies. The Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Reporting Entity The City was incorporated September 17, 1887 under the general laws of the State of California. The City operates under a Council -Manager form of government and provides basic local governmental services including public safety (police and fire), maintenance and construction of public improvements, cultural, recreation, planning, zoning, transportation, health services and general administration. In addition, the City operates the Community Development Commission (which formerly included the Morgan Towers and Kimball Towers Enterprise Funds). The City sold Kimball Towers and Morgan Towers to two not -for -profit organizations on March 28, 2019. The sale was intended to ensure the feasibility of the renovation, since not -for -profit organizations have financing sources that are unavailable to a developer such as a City. In evaluating how to define the City for financial reporting purposes, management has considered all potential component units. The primary criteria for including a potential component unit within the reporting entity are the governing body's financial accountability and a financial benefit or burden relationship and whether it is misleading to exclude. A primary government is financially accountable and shares a financial benefit or burden relationship if it appoints a voting majority of an organization's governing body and it is able to impose its will on the organization, or if there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government. A primary government may also be financially accountable if an organization is fiscally dependent on the primary government regardless of whether the organization has a separately elected governing board, a governing board appointed by a higher level of government, or a jointly appointed board, and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on the primary government. Blended Component Units The financial reporting entity consistsof the primary government, the City, and its component units. Component units are legally separate entities for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the primary govermnent is accountable and their exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Blended component units, although legally separate entities, are, in substance part of the govermnent's operation and so data from these units are combined with data of the primary government. Discretely presents component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the government. Although the following are legally separate from the City, they have been "blended" as though they are part of the City because the component unit's governing body is substantially the same as the City's and there is a financial benefit or burden relationship between the City and the component unit; management of the City has operational responsibilities for the component units; and/or the component units provide services entirely, or almost entirely, to the City or otherwise exclusively, or almost exclusively, benefits the City, even though it does not provide services directly to it. 49 305 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Reporting Entity and Summary of Significant Accounting Policies (Continued) A. Reporting Entity (Continued) Blended Component Units (Continued) National City Joint Powers Financing Authority The National City Joint Powers Financing Authority (the `NCJPFA") was created pursuant to a joint exercise of powers agreement entered into by and between the City and the CDC on April 16, 1991. The purpose of such agreement was to provide for the financing and construction of a new police facility and a new community center, The NCJPFA is administered by a commission consisting of the members of the City Council and all voting power of the NCJPFA resides in the commission. The NCJPFA exclusively benefits the City. There are no separate financial statements available. Parking Authority of the City of National City In July 1977, the Parking Authority of the City of National City (the "Authority") was activated pursuant to the Parking Law of 1949 for the financing and construction of the Plaza Bonita Parking Facility. The City Council is the governing board of the Authority. The Authority exclusively benefits the City. The capital assets of the Authority have been included in the Government -Wide Financial Statements. There are no separate financial statements available. Community Development Commission of the City of National City The Community Development Commission of the City of National City (the "CDC") was established in April 1967 as the National City Redevelopment Agency (the `RDA") pursuant to provisions of the California Health and Safety Code. The CDC was created in 1975 to undertake and carry out the redevelopment of certain areas within the City which the CDC has determined to be blighted areas by encouraging development of residential, commercial, industrial, recreational and public facilities and to assist neighborhood redevelopment through residential property improvement loans and housing assistance payments to low and moderate income earners. The City Council is the Governing Board of the CDC. The following specific criteria were used in determining the status of these component units: • Members of the City Council also act as the governing body of the NCJPFA, the Authority, and the CDC; • The City, the NCJPFA, the Authority, and the CDC are financially interdependent; • The NCJPFA, the Authority, and the CDC are managed, at least in part, by employees of the City, who provide various support functions including financial reporting and investment decisions. 50 306 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance -related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements. The Statement of Net Position reports separate sections for deferred outflows of resources, and deferred inflows of resources, when applicable. Deferred Outflows of Resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore, will not be recognized as an expense until that time. Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as revenue until that time. Government - Wide Financial Statements The City's Government -Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business -type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. These financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and Liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Certain types of transactions are reported as program revenues for the City in three categories: ➢ Charges for services ➢ Operating grants and contributions ➢ Capital grants and contributions Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business -type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities and Changes in Net Position, internal service fund transactions have been eliminated; however, those transactions between governmental and business - type activities have not been eliminated. The following interfund activities have been eliminated: ➢ Due to/from other funds ➢ Advances to/from other funds ➢ Transfers in/out 51 307 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis ofAccounting and Measurement Focus (Continued) Governmental Fund Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non -major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the Government -Wide Financial Statements. The City has presented all major funds that met the applicable criteria. All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recognized as soon as they are both "measurable" and "available". Revenues are considered to be available when they are collectible within the current period as soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. The Reconciliation of the Fund Financial Statements to the Govervnent-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34. The City reports the following major governmental funds: General Fund — This is the primary operating fund of the City. It is used to account for all revenues and expenditures that are not required to be accounted for in another fund. Housing Fund —This fund is used to account for activities of housing assistance and assistance to low income families. The major revenue source for this fund is program income. Housing Choice Voucher Program ("Section 8'9 Special Revenue Fund - This fund is used to account for the activities of Housing Assistance Program. The program provides rental assistance to low income families by subsidizing a portion of the rent directly to landlords on behalf of low income households. The major revenue source for this fund is Housing Assistance Payments and Administrative Fees. Sewer Service Special Revenue Fund - This fund is used to account for the collection of sewer connection fees and sewer service charges billed and paid via the County's annual property tax collection system which are used for the construction and maintenance of City sewers. The major revenue source for this fund is the sewer service fee. Other Special Revenue Funds - This represents a combination of minor and less active funds that the City has combined for reporting purposes. The major revenue sources consist of intergovernmental revenues, user - charge fees, franchise fees, and development impact fees. Housing Authority Special Revenue Fund - This fund is used to account for the activities of the development of a viable urban community by providing decent housing, a suitable living environment, and expanding economic opportunities, principally for persons with low and moderate incomes. 52 308 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows. A column representing internal service funds is presented in these statements. Internal service balances and activities have been combined with the governmental activities in the Government -Wide Financial Statements. The City's internal service funds include eight individual funds which provide services directly to other City funds. These areas of service include Facilities Maintenance, Liability Insurance, Fleet and Vehicle Maintenance, Information Technology Replacement, and Workers Compensation. Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in total Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non -operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non -operating expenses. The City reports the following proprietary funds: Internal Service Funds are funds used to account for interdepartmental operations where it is the stated intent that costs of providing services to the departments of the City on a continuing basis be financed or recovered primarily by charges to the user departments. Facilities Maintenance Fund —This fund is used to account for the cost of maintaining all City -owned buildings in a clean, safe, workable, and pleasant condition. The source of revenue is reimbursement from City departments and/or programs in a cost -reimbursement basis. Liability Insurance Fund This fund is used to account for the costs of maintaining the City's Worker's Compensation and liability insurance programs. The source of revenue is reimbursement from City departments and/or programs in a cost -reimbursement basis. Information Systems Maintenance Fund —This fund is used to account for the costs to replace City office equipment and information technology software and hardware as well as pay for the City staff that provide support to other City departments on a daily basis. The source of revenue is reimbursement from City departments and/or programs in a cost -reimbursement basis. 53 309 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis ofAccounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued) Office Equipment Depreciation Fund —This fund is used to account for the costs to replace City office equipment. The source of revenue is reimbursement from City departments and/or programs in a cost - reimbursement basis. Telecommunications Revolving Fund —This fund is used to account for the costs of maintaining the City's telecommunication systems. The source of revenue is reimbursement from City departments and/or programs in a cost -reimbursement basis. Motor Vehicle Service Fund —This fund is used to account for the City's costs of preventative maintenance and repairs for its fleet, including police, fire, general administrative, park, sewer, and public works equipment. The source of revenue is reimbursement from City departments and/or programs in a cost - reimbursement basis. Vehicle Replacement Fund —This fund is used to account for the costs to replace City equipment, including fleet vehicles. The source of revenue is reimbursement from City departments and/or programs in a cost - reimbursement basis. Fiduciary Fund Financial Statements Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City's fiduciary funds represent agency funds and private purpose trust funds. Both the agency funds and the private purpose trust funds are accounted for on the full accrual basis of accounting. Fiduciary fund types are accounted for according to the nature of the fund. The City's Agency finds (Cobra Insurance and Miscellaneous Developer's Deposits) are purely custodial in nature (assets equal liabilities) and thus do not involve measurement of results of operations. The Cobra Insurance Agency Fund accounts for the collection of medical and dental health insurance premiums. The Miscellaneous Developer's Deposits Agency Fund accounts for private development project performance deposits. These funds are used to account for money and property held by the City as trustee or custodian. The City's private purpose trust fund is a fiduciary fund type used by the City to report assets, liabilities and activities of the Successor Agency to the CDC. Its results of operations are presented on the Statement of Changes of Fiduciary Net Position. The Successor Agency to the Community Development Commission as the National City Redevelopment Agency (the "Successor Agency") was created by the City Council of National City (City Council) in January 2012. It was established pursuant to Assembly Bill xl 26. Its purpose is to expeditiously wind down the affairs of the dissolved Redevelopment Agency. The governing body of the Successor Agency is comprised of the members of the City Council. Certain actions of the Successor Agency Board are subject to review by the Countywide Oversight Board and the California State Department of Finance. The Successor Agency has been included in the accompanying basic financial statements as a private purpose trust fund. 54 310 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Reporting Entity and Summary of Significant Accounting Policies (Continued) C. Cash, Cash Equivalents and Investments The City pools its available cash for investment purposes. The City considers pooled cash and investment amounts, with original maturities of three months or less, to be cash equivalents. Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. The statement of cash flows requires presentation of "cash and cash equivalents". For the purposes of the statement of cash flows, the City considers all proprietary fund pooled cash and investments as "cash and cash equivalents", as such funds are available to the various funds as needed. Certain disclosure requirements, if applicable, for deposit and investment risks in the following areas: > Interest rate risk D Credit risk - Overall - Custodial credit risk - Concentration of credit risk Foreign currency risk In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures. D. Fair Value Measurement U.S. GAAP defines fair value, establishes a framework for measuring fair value, and establishes disclosures about fair value measurement. Investments, unless otherwise specified, are recorded at fair value in the Statements of Net Position, and are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The levels of inputs are as follows: Level 1 — Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level 2 — Inputs, other than quoted prices included in Level 1, which are observable for the assets or liabilities through corroboration with market data at the measurement date. Level 3 — Unobservable inputs that reflect management's best estimate of what market participants would use in pricing the assets or liabilities at the measurement date. 55 311 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Reporting Entity and Summary of Significant Accounting Policies (Continued) E. inventories and Prepaid items Inventories are valued on an average -cost basis which is adjusted to annual physical counts or estimates under the consumption method of accounting and are recorded in the internal service funds. Prepaid items are items the City has paid in advance and will receive future benefit from. F. Restricted Assets Fiscal agents acting on behalf of the City hold investment funds placed in irrevocable IRS Section 115 pension and OPEB trusts. These funds are restricted by the trust agreements and are to be used only for pension and/or OPEB contributions or benefit payments. G. Interfu nd Transactions Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" or "advances to/from other funds" (i.e., the current portion of interfund loans). Any residual balances outstanding between the governmental activities and business- type activities are reported in the Governmental -Wide Financial Statements as "internal balances." H. Capital Assets Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available. Donated capital assets are valued at their estimated acquisition value on the date donated, City policy has set the capitalization threshold for reporting capital assets at $5,000 (including infrastructure assets). Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows: Buildings and Improvements 10 -50 years Machinery and Equipment 2 -20 years Infrastructure 25 -75 years Radio rights 20 years For all infrastructure systems, the City elected to use the basic approach for infrastructure reporting. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include the streets, water purification and distribution system, sewer collection and treatment system, parks and recreation, lands and improvement system, storm water conveyance system, and buildings combined with the site amenities such as parking and landscaped areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings). landscaping and. land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems. Interest accrued during capital assets construction, if any. is capitalized for the business -type and proprietary funds as part of the asset cost. 56 312 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1-- Reporting Entity and Summary of Significant Accouuting Policies (Continued) I. Compensated Absences In government -wide financial statements and the proprietary fund financial statements, compensated absences are recorded as expenses and liabilities as incurred. In governmental fund financial statements, compensatedabsences are recorded as expenditures in the years paid, as it is the City's policy to liquidate any unpaid vacation or sick leave at year-end from future resources rather than currently available and expendable resources. The General Fund and internal service funds are typically used to liquidate compensated absences. J. Long -Term Debt Government -Wide Financial Statements Long-term debt and other financial obligations are reported as liabilities in the appropriate funds. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable premium or discount. Issuance costs are expensed when incurred. Fund Financial Statements The fund financial statements do not present long-term debt but long -tern debt is shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Position. K. Property Taxes Property taxes are payable in two installments: November 1 and February 1 of each year. Property taxes become delinquent on December 10 and April 10, for the first and second installments, respectively. The lien date is January 1. The County of San Diego, California (County) bills and collects property taxes and remits them to the City according to a payment schedule established by the County. Property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided the taxes are received within 60 days after the end of the fiscal year. Property taxes received after this date are not considered available as a resource that can be used to finance the current year operations of the City and, therefore, are not recorded as revenue until collected. No allowance for doubtful accounts was considered necessary because the City participates in the California Teeter Plan whereby local agencies receive 100% of their current secured tax levy in exchange for allowing the sponsoring county to retain all interest and penalties on any late property tax payments, 57 313 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Reporting Entity and Summary of Significant Accounting Policies (Continued) L. Unearned Revenue Unearned revenue recorded in the Government -Wide Statement of Net Position for governmental activities and the governmental fund financial statements consists of federal and state capital grants, representing voluntary non - exchange transactions, for which advance payments have been received from the provider for which eligibility requirements, other than timing requirements, have not been satisfied. Unearned revenue recorded in the Government -Wide Statement of Net Position for business -type activities and the proprietary fund financial statements generally consist of program fees collected from customers prior to the statement of net position date for recreation programs that begin in the next fiscal year or donations for capital or work projects, for which the related expenses have not yet been incurred. M. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the pension plans and additions to/deductions from the plans' fiduciary net position have been determined on the same basis as they are reported by the plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following timeframes are used for pension reporting: Ca1PERS: Valuation Date Measurement Date Measurement Period June 30, 2018 June 30, 2019 July 1, 2018 to June 30, 2019 Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over five years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive. and retired) as of the beginning of the measurement period. 58 314 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Reporting Entity and Summary of Significant Accounting Policies (Continued) N. Other Postemployment Benefits For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the plan and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan (Note 11). The following timeframes are used for OPEB reporting: Valuation Date Measurement Date Measurement Period O. Net Position June 30, 2019 June 30, 2020 July 1, 2019 to June 30, 2020 In government -wide and proprietary fund financial statements, net position is categorized as follows: Net Investment in Capital Assets — This component of net position consists of capital assets, net of accumulated depreciation, plus deferred outflows of resources attributable to their acquisition, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets and deferred inflows of resources attributable to their acquisition. Restricted — This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Unrestricted — This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. P. Fund Balances In governmental fund financial statements, fund balances are categorized as follows: Nonspendable — Items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, or items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds. Restricted — Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation. 59 315 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1 — Reporting Entity and Summary of Significant Accounting Policies (Continued) Q• Fund Balances (Continued) Committed — Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body and that remain binding unless removed in the same mariner. Adoption of a resolution by the City Council is required to commit resources or rescind the commitment. The action that constitutes the most binding constraint (Le. ordinance) of the City's highest level of decision -making authority, City Council, commits fund balance for specific purposes. Commitments may be changed or lifted only by the City taking the same formal action that imposed the constraint originally. Assigned — Assigned fund balances encompass the portion of net fund resources reflecting the government's intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized the City Manager to determine and define the amount of assigned fund balances. Unassigned — This amount is for any portion of the fiend balances that do not fall into one of the above categories. The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than General Fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. R. Spending Policy Government -Wide Financial. Statements and the Proprietary Fund Financial Statements When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first. Governmental Fund Financial Statements When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned. S. Use of Esthnates The preparation of basic financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from these estimates and assumptions. 60 316 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Reporting Entity and Summary of Significant Accounting Policies (Continued) T. Accounting Changes New Governmental Accounting Standards Implemented for the Year Ended June 30, 2020 GASB Statement No. 95 In May 2020, GASB issued Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The primary objective of this Statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in Statements and Implementation Guides that first became effective or are scheduled to become effective for periods beginning after June 15, 2018, and later. Application of this statement did not have a material effect on the City's financial statements for the fiscal year ended June 30, 2020. Upcoming Governmental Accounting Standards Implementation GASB Statement No. 84 In January 2017, GASB issued Statement No. 84, Fiduciary Activities. This Statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. Application of this statement is effective for the City's fiscal year ending June 30, 2021. GASB Statement No. 87 In June 2017, GASB issued Statement No. 87, Leases. This Statement increases the usefulness of governments' financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities. Application of this statement is effective for the City's fiscal year ending June 30, 2022. 61 317 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1 — Reporting Entity and Summary of Significant Accounting Policies (Continued) T. Accounting Changes (Continued) Upcoming Governmental Accounting Standards Implementation (Continued) GASB Statement No. 89 In June 2018, GASB issued Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5-22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre -November 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared. using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business -type activity or enterprise fund. Application of this statement is effective for the City's fiscal year ending June 30, 2022. GASB Statement No. 90 In August 2018, GASB issued Statement No. 90, Majority Equity Interests— An Amendment of GASB Statements No. 14 and No. 61. This Statement improves the consistency and comparability of reporting a government's majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. It defines a majority equity interest and specifies that a majority equity interest in a legally separate organization should be reported as an investment if a government's holding of the equity interest meets the definition of an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. Application of this statement is effective for the City's fiscal year ending June 30, 2021. GASB Statement No. 91 In May 2019, GASB issued Statement No. 9I, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. Application of this statement is effective for the City's fiscal year ending June 30, 2023. 62 318 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1— Reporting Entity and Summary of Significant Accounting Policies (Continued) T, Accounting Changes (Continued) Upcoming Governmental Accounting Standards Implementation (Continued) GASB Statement No. 94 In March 2020, GASB issued Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment Arrangements. The primary objective of this Statement is to improve financial reporting by addressing issues related to public -private and public -public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange -like transaction. Application of this statement is effective for the City's fiscal year ending June 30, 2023. GASB Statement No. 96 In May 2020, GASB issued Statement No. 96, Subscription -Based Information Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for subscription -based information technology arrangements (SBITAs) for government end users (governments). This Statement (I) defines a SBITA; (2) establishes that a SBITA results in a right -to -use subscription asset —an intangible asset —and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Application of this statement is effective for the City's fiscal year ending June 30, 2023. GASB Statement No. 97 In June 2020, GASB issued Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans — An Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB Statement No. 32. The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. Application of this statement is effective for the City's fiscal year ending June 30, 2022. 63 319 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 2 — Cash and Investments The following is a summary of pooled cash and investments, including cash and investments with fiscal agents at June 30, 2020. Fiduciary Funds Governmental Statement of Activities Net Position Total Cash and investments $ 108,231,655 $ 9,624,661 $ 117.856,316 Restricted cash and investments: Section 115 trust 9,537,721 - 9,537,721 Held by fiscal agents 10,334 1.464 11,798 Total restricted cash and investments 9.548.055 1.464 9,549.519 Total cash and investments $ 117.779,710 $ 9,626,125 $ 127,405,835 Cash, cash equivalents and investments consisted of the following at June 30, 2020: Petty cash $ 4,439 Deposits with financial institution 19,550,712 Investments 98,301,165 Section 115 trust 9,537,721 Investments held by bond trustee 11,798 Total cash and investments $ 127,405,835 A. Deposits The carrying amount of the City's cash deposits were $19,550,712 at June 30, 2020. Bank balances before reconciling items were $21,524,278 at that date, the total amount of which was insured or collateralized with securities held by the pledging financial institutions in the City's name as discussed below. The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name. The market value of pledged securities must equal at least 110% of the City's cash deposits, California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period -end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. 64 320 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 2 — Cash and Investments (Continued) B. Investments Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. Authorized Investment Type Maximum Maturity Bankers' Acceptances Negotiable Certificates of Deposits Commercial Paper State and Local Agency Bond Issues US Treasury Obligations US Agency Securities Repurchase Agreement Reverse -Purchase Agreements Medium -Term Corporate Notes Federally Insured Time Deposits Money Market Mutual Funds Local Agency Investment Fund (LAIF) Investment Trust of California (CalTrust) San Diego County Pool Money Fund Asset -Backed Securities Supranationals * Excluding amounts held by bond trustee that are not subject as Maximum is $50 million per account. 180 days 5 years 270 days 5 years 5 years 5 years 90 days 92 days 5 years 5 years NIA N/A NIA None 5 years 5 years M aximum Percentage of Portfolio* 40% 30% 25% None None None None 20% 30% None 20% None None None 20% 30% Maximum Investment in One Issuer to California Government Code restriction. 5% 5% 5% 10% None None I0% 10% 10% 10% 10% $50 Million** 10% None 20% 10% 65 321 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 2 — Cash and Investments (Continued) B. Investments (Continued) Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreement rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. M aximum Maximum Authorized Maximum Percentage of Investment in Lnvestment Type Maturity Portfolio One Issuer US Treasury Obligations None None None US Agency Securities None None None Banker's Acceptances 180 days None None Commercial Paper 270 days None None Money Market Mutual Funds N/A None None Investment Contracts 30 years None None Certificates of Deposit None None None Repurchase Agreements None None None Mortgage Pass -Through Securities None None None State Bonds or Notes None None None Municipal Bonds or Notes None None None San Diego County Pool Money Fund None None None Asset -Backed Securities 5 years 20% 20% C. Fair Value Measurement As of June 30, 2020, the City's investments had the following recurring fair value measurements: Investment Type Percent of Level 2 Uncategorized Total Total LA1F $ - $ 27,705530 $ 27,705.530 25,69% Money market funds 34.864 34,864 0.03% San Diego County Investment Pool - 36.442,498 36.4-12.498 33.79% Sup ranat ional 505,425 - 505,425 0.47% Negotiable Certificates of Dep osit 2,000,000 2.000,000 1.85% Commercial Paper 624,160 624,160 0.58% Asset -Backed Securities 1,707,119 1.707.1 19 1.58% US Corporate 6,713.586 6,713586 6.22% US Treasury Obligations 10.611,551 10,611,551 9.84% US Agency Securities 11,956,432 - 11.956,432 1 1.09% Subtotal 34,118,273 64,182.892 98,301,165 91.15% Held by fiscal agent; Section 115 trust 9,537,721 9537.721 8.849'6 Money market funds 11,798 11.798 0.01% Subtotal 9.549,519 9,549,519 Total Investments 8.85% $ 34,115,273 $ 73,732.411 $107,850,684 100.00% 66 322 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 2 — Cash and Investments (Continued) C. Fair Value Measurement (Continued) Debt and equity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches: • U.S. Treasuries, U.S. Agencies, and Commercial Paper: quoted prices for identical securities in markets that are not active; • Medium term notes: quoted prices for similar securities in active markets; and D. Risk Disclosures Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity, the greater the sensitivity its fair value is to changes in market interest rates, As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy provides that final maturities of securities cannot exceed five years, except as otherwise stated in the investment policy. Specific maturities of investments depend on liquidity needs. As of June 30, 2020, the City had the following investments and maturities: Investment Maturities Investment Type Fair Value 1 year or less 1 to 2 years 2-3 years 3-4 years 4-5 years LAIF $ 27,705,530 $ 27,705,530 $ $ - $ - $ Money market funds 34,864 34,864 San Diego County Investment Pool 36,442,498 36,442,498 - Sup ranational 505,425 505,425 Negotiable Certificates of Deposit 2,000,000 2,000,000 Commercial Paper 624,160 624,I60 - - Asset -Backed Securities 1,707,I 19 - 420,9I8 208,134 536,613 541,454 US Corporate 6,713,586 2,593,419 820,020 2,427,938 872,209 US Treasury Obligations 10,611,551 3,216,334 3,629,599 2,873,130 892,488 US Agency Securities 11,956,432 2,010,973 3,429,340 3,655,744 1,2I5,790 1,644,585 Subtotal 98,301,165 75,133,203 8,299,877 9,164,946 3,517,100 2,186,039 Held by fiscal agent: Section 115 trust 9,537,721 9,537,721 Money market funds 11,798 1I,798 - Subtotal 9,549,519 9,549,519 Total Investments $ 107,850,684 $ 84,682,722 $ 8,299,877 $ 9,164,946 $ 3,517,100 $ 2,186,039 The weighted average maturity of the portfolio was 1.47 years. 67 323 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 2 — Cash and Investments (Continued) D. Risk Disclosures (Continued) Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. To be eligible to receive City money. a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities, including low -and moderate income neighborhoods. The City's investments are rated by the nationally recognized statistical rating organizations as follows: Incestmcnr "Type LAIF Money Market Funds San Diego County investment Pool Sup ranational Negotiable Certificates of Deposit Commercial Paper Asset -backed Securities US Corporate US Treasury Obligations US Agency Securities Investment in Section 115 trust Investments held by bond trustee Custodial Credit Risk Standard Fair Value Nloody's & Poor's $ 27._705,530 Not Rated 34,864 Aaa 36,442,498 Not Rated 505,425 Aaa 2,000,000 P-1 624,160 P-1 1,707,119 Various 6,713586 Various 10,611,551 n/a 11,956,432 Aaa 9,537,721 Not Rated 11,798 Not Rated 107.850,684 Not Rated AAA Not Rated AAA A-1+ A-1 Various Various n/a AA+ Not Rated Not Rated Custodial credit risk is the risk that, in the event of the failure of the counter party, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. All securities, with the exception of LAIF and other pooled investments, are held by a third -party custodian (BNY Western Trust). BNY is a registered member of the Federal Reserve Bank. Concentration ofCredit Risk The City's investment policy contains limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. investments in any one issuer that represent 5% or more of total City's investments are as follows: issuer Local Agency Investment Fund (LAIF) US Agency Securities San Diego County Investment Pool US Treasury Obligations PARS Pension Trust US Corporate Investment Type California Pooled Investment Fund Federal Agency Securities San Diego County Pooled Investment Fund US Treasury Obligations Investment in Section 115 trust Corporate Medium Term Notes Fair Value $ 27,705,530 11,956,432 36,442,498 10,611.551 9,537.721 6.713.586 68 324 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 2 — Cash and Investments (Continued) E. Investments in Local Agency Investment Fund The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City's investments in LAIF at June 30, 2020 included a portion of pool funds invested in Structure Notes and Asset -Backed Securities: Structured Notes are debt securities (other than asset -backed securities) whose cash -flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. Asset -Backed Securities, the bulk of which are mortgage -backed securities, entitle their purchasers to receive a share of the cash flows from pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables. As of June 30, 2020, the City had $27,705,530 invested in LAIF, which had invested 3.37% of the pool investment funds in Structured Notes and Asset -Back Securities. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The City valued its investments in LAIF as of June 30, 2020, by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was determined by dividing alI LAIF participants' total aggregate amortized cost by total aggregate fair value. The fair value of the City's position in the pool is the same as the value of the pool shares. The credit quality rating of LAIF is unrated as of June 30, 2020. F. Investments in San Diego County Investment Pool The City also participates in the San Diego County Treasurer's Pooled Money Fund which is administered by the Treasurer -Tax Collector's Office. At June 30, 2020, the City had $36,442,498 invested in the pool. The fair value of Commission's investment in the pool is reported at amounts based upon the City's pro-rata share of the fair value provided by the County Treasurer for the entire portfolio (in relation to the amortized cost of that portfolio). Earnings realized on investments based on amortized cost are distributed to Investment Pool participants. Section 27013 of the California Government Code authorizes the Treasurer's Office to deduct administrative fees related to investments. The net realized earnings on investments are apportioned to the Investment Pool participants quarterly, based on the participants' average daily balances. The County's annual financial report for the Pool can be obtained from the Treasurer -Tax Collector at 1600 Pacific Highway, Room 162, San Diego, California, 92101 and can also be accessed at http://www.sdtreastax.com. 69 325 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 3 — Loans Receivable A. Government -Wide Financial Statements At June 30, 2020, the City had the following loans receivable, including principal and accrued interest: Morgan Tower Housing Associates, LP $ 15,087,647 Kimball Tower Housing Associates, LP 19,415,913 Copper Hills Apartments, LP 7,266.759 Plaza City Apartments, LP 3,422,000 Home Improvement Loan Program 32,611 First Time Home Buyers Program 3,475,081. Owner Occupied Loan Program 429,601 Rental Rehabilitation Loan Program 3,332.500 Paradise. Creek, LP 5,909.758 Subtotal 58,371,870 Less: allowance (12,038,201) Total $ 46,333,669 Morgan Tower Housing Associates, LP On March 28, 2019, the Community Development Commission- Housing Authority of the City of National City sold 152 units (151 affordable units and 1 manager's unit) of housing for low-income senior households located at 1415 D Avenue in National City to Morgan Tower Housing Associates, L.P., for $33,800,000. The CDC -HA sold only the improvements and retained fee -simple ownership of the land through a 99 year -ground lease. The CDC - HA provided a seller carryback note totaling $15,106,284. The note carries a 55-year term with interest compounding annually at 2.91% and has a mandatory annual payment of $222,000 that increases by 3.50% per year following the base year. An additional annual payment will be made from 50% of residual receipts. At June 30, 2020, the outstanding balance was $15,087,647. Kimball Tower Housing Associates, LP On March 28, 2019, the CDC -HA sold 151 units (149 affordable units and 2 manager's units) of housing for low- income senior households located at 1317 D Avenue, National City to Kimball Tower Housing Associates, L.P.. for $28,800,000. The CDC -HA sold only the improvements and retained fee -simple ownership of the land through a 99 year -ground lease. The CDC -HA provided a seller carryback note totaling $19,374,337. The note carries a 55- year term with interest compounding annually at 2.91% and has a mandatory annual payment of $253,000 that increases by 3.50% per year following the base year. An additional annual payment will be made from 50% of residual receipts. At June 30, 2020, the outstanding balance was $19,415,913. Copper Hills Apartment, LP In 1999, the former Community Development Commission of the City of National City (CDC) entered into several loan agreements with Copper Hills Apartments, LP. CDC Residual Receipts Note dated February 19, 1999 disclosed a loan of $2,400,000 with 3% interest per annum for 55 years, funded by the HOME Program and Low & Moderate Income Housing Funds. A second and junior to the CDC Residual Receipts Note was made on June 3, 1999 for $4,400,000, referred to as CDC Rehabilitation Note with 3% interest per annum for 55 years and funded by the Low & Moderate Income Housing Fund (currently Housing Fund). These loans were made to acquire, develop, rehabilitate and operate the multi -family apartments located at "Q" Avenue in National City, CA. This project will contain 134 apartment dwelling units following rehabilitation and renovation. At June 30, 2020. the outstanding balance was $7,266,759 with an associated contractual allowance of $2,367,995. 70 326 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 3 — Loans Receivable (Continued) A. Government -Wide Financial Statements (Continued) Plaza City Apartments, LP The CDC of the City of National City entered into a Loan Agreement with Plaza City Apartments, LP on November 1, 2005 in the amount of $2,700,000 with 3% interest per annum for 55 years. It was amended per Resolution No. 2006-202 dated September 19, 2006 which increased the loan amount by $722,000 for a total of $3,422,000. This loan will be used by the borrower to pay the balance of the purchase price and additional costs relating to the acquisition, demolition and development of certain real property located at 1535 Plaza Blvd., National City, CA. At June 30, 2020, the outstanding balance of loans made was $3,422,000 with an associated contractual allowance of $3,422,000. Home Improvement Loan program The City of National City Horne Improvement Loan Program was administered by the Housing Authority and funded with Community Development Block Grant funds. The loan program provided loans to owners of single- family residences that wished to rehabilitate their property, providing for safe, decent, and sanitary housing throughout National City. The loan program provided favorable terns of repayment and stopped issuing loans in 2002. At June 30, 2020, the outstanding balance of the loans made was $32,611. First Time Home Buyers program The City of National City First -Time Homebuyer Assistance Program is currently funded through HUD HOME Investment Partnerships Program and previously was also funded with the State of California Low- and Moderate - Income Housing Set -Aside funds. The Program is currently administered by Community Housing Works, a 501(c)3 affordable housing agency that offers equity share deferred home gap financing loans to qualified borrowers. At June 30, 2020, the outstanding balance of the loans made was $3,375,081 with an allowance for doubtful accounts of $3,074,068. Owner Occupied Loan program The City of National City Owner Occupied Loan Program is administered by the Housing Authority. The program provides loans to owners of single family residences that wish to rehabilitate their property, providing for safe, decent, and sanitary housing throughout National City. Principal payment on the loans provided is deferred for 30 years. At June 30, 2020, the outstanding balance of the loans made was $429,601. Rental Rehabilitation program The City of National City Rental Rehabilitation Loan Program is administered by the Housing Authority and funded through HUD HOME Investment Partnerships Program and the Low- and Moderate -Income Housing Asset Fund. The program offers gap financing to developers for the rehabilitation of multi -family complexes and also provides for long-term rental assistance to deed -restricted units. At June 30, 2020, the outstanding balance of loans made was $3,332,500 with an allowance for doubtful accounts of $3,174,138. 71 327 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 3 — Loans Receivable (Continued) A. Government -Wide Financial Statements (Continued) Paradise Creek, LP On June 21, 2011, the Community Development Commission of the City of National City ("Commission'), and Paradise Creek Housing Partners, L.P. (the "Developer") entered into an agreement (Disposition and Development Agreement) for the development of 201-unit affordable housing as Phase I and II of the Transit -Oriented Infill Affordable Housing and Paradise Creek Enhancement Project (the "Project"). The Commission, in order to make the Project financially feasible, agreed to make a loan to Developer for the amount of $6,000,000 for Phase I of the Project. During 2016, the loan receivable was transferred from the Successor Agency to the City and was recorded as a special item. As of June 30, 2020, the note receivable amount is $5,909,758. The Developer will repay the loan with ground lease income and residual receipts to the Community Development Commission -Housing Authority of the City of National City ("CDC -HA"). B. Fiduciary Fund Financial Statements At June 30, 2020, the Agency had the following loans receivable, including principal and accrued interest: National City Mile of Cars $ 370,984 First Time Home Buyers Program 2,500,000 Subtotal 2,870,984 Less: allowance (2,500,000) Total $ 370,984 National City Mile of Cars In July 20, 2010, the Community Development Commission of the City of National City ("Commission"), and Mile of Cars Association ("Participant") entered into an agreement (Freeway Sign Rehabilitation Loan Agreement) for the rehabilitation of existing equipment and improvements constituting the signage. The Commission agrees to loan to the Participant the amount of $675,000 for said improvements. As of June 30, 2020, the note receivable amount was $379,239. The Participant agrees to execute a promissory note by which agree to repay the Commission the full amount of the rehabilitation loan plus interest. First Time Home Buyers program The Commission's First -Time Homebuyer Assistance Program was funded through the HUD HOME Investment Partnerships Program and State of California Low- and Moderate -Income Housing Set -Aside funds. The Program is currently administered by Community Housing Works, a 501(c)3 affordable housing agency that offers equity share deferred home gap financing loans to qualified borrowers. At June 30, 2020, the outstanding balance of the loans made was $2,500,000 with an allowance for doubtful accounts applied for the full balance. 72 328 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 4 — Interfund Balances and Transactions A. Due to/Due from other funds At June 30, 2020, interfund receivables and payables were as follows: Receivable Fund Payable Fund Amount Purpose General Fund General Fund Other Special Revenue Fund CDBG Fund $ 4,289,884 Overdrawn Cash 92,598 Overdrawn Cash Total $ 4,382,482 Current interfund balances arise in the normal course of operations to cover cash shortages and are expected to be repaid shortly after the end of the fiscal year. B. Transfers In/Out For the year ended June 30, 2020, interfund transfers were as follows: Transfers In Transfers Out Amount Purpose Other Special Revenue Fund General Fund $ 273,976 Operating subsidy Library Fund General Fund 787,570 Operating subsidy Parks Maintenance Fund General Fund 487,020 Operating subsidy Facilities Maintenance Fund General Fund 5,000 Operating subsidy Subtotal 1,553,566 General Fund Other Special Revenue Fund 5,500 Administrative cost Nutrition Fund Housing Authority Special Revenue Find 491,625 Administrative cost Total $ 2,050,691 73 329 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 5 — Capital Assets A. Governmental Activities A summary of changes in capital assets for governmental activities for the year ended June 30.2020 is as follows: Balance Transfers/ Balance July 1,2019 Additions Deletions Reclassifications June 30,2020 Capital assets, not being depreciated: Land S 24,402.009 $ Right of way 4.245.088 Construction in progress 13,270.929 Total capital assets, not being depreciated 41,918,026 $ $ - $ 24,402,009 4,245.083 12,421.855 - (3.924,530) 21,768.254 12421,855 (3.924,530) 50,415,351 Capital assets, being depreciated: Buildings and improvements 62,197,262 - 272,140 62,469,402 Machinery and equipment 21,908,587 1.627,979 (439,452) 23,097.114 Infrastructure 151,082,652 (531,411) 3,652.390 154 203,631 Radio rights 1,270,763 - - 1,270,763 Subtotal 236,459,264 1.627,979 (970,863) 3,924.530 241,040,910 Less accumulated depreciation Buildings and improvements (31,281,079) (2,371,505) - (33,652,584) Machinery and equipment I14,077,123) (1253,406) 404.286 - (14,926243) Infrastructure (71,907.262) (3.489,451) 425,348 - (74,971,365) Radio rights (190,614: (63,538) - - (254.152) Subtotal (117,456,0781 (7,177,900) 829,634 (123,804.344) Total capital assets, being depreciated 119,003,186 (5,549,921) (141,229) 3,924,330 117,236,566 Total capital assets, net $ 160,921,212 $ 6,871,934 $ (141,229) $ - $ 167,651,917 Depreciation expense was charged to functions/programs as follows: General government $ 1,013,623 Public safety 1.086.541 Transportation 3.525,591 Community development 16,379 Culture and leisure 586,559 Internal service funds 949.207 Total depreciation expense $ 7.177,900 330 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 5 — Capital Assets (Continued) B. Fiduciary Funds Financial Statements A summary of changes in capital assets for fiduciary funds for the year ended June 30, 2020 is as follows: Capital assets, not being depreciated: Land Total capital assets, not being depreciated Capital assets, being depreciated: Buildings Machinery and equipment Subtotal Less accumulated depreciation Buildings Machinery and equipment Subtotal Total capital assets, being depreciated Total capital assets, net Balance July 1, 2019 Balance Additions Deletions June 30, 2020 $ 450,000 $ $ 450,000 - $ 450,000 450,000 800,000 81,163 800,000 81,163 881,163 (800,000) (81,163) (881,163) 881,163 (800,000) (81,163) (881,163) $ 450,000 $ $ 450,000 Depreciation expense for fiduciary fund financial statements for the year ended June 30, 2020 was $0. Note ti — Long -Term Debt A. Governmental Activities A summary of changes in governmental activities long-term debt for the year ended June 30, 2020 is as follows: Classification Long-term debt: 2012 General Obligation Bonds Bond premium Section 108 Bonds 2017 Clean Energy Bonds 2017 Lease Revenue Bonds Notes payable Capital leases Total long-term debt Balance June 30, 2019 $ 3,360,000 $ 14,443 2,630,000 1,800,000 3,407,479 925,530 1,001,185 Debt Issued Debt Retired Balance June 30, 2020 Due within One Year Due in More Than One Year $ (280,000) $ 3,080,000 $ 290,000 $ 2,790,000 (1,605) 12,838 12,838 (455,000) 2,175,000 485,000 1,690,000 1,800,000 1,800,000 (134,455) 3,273,024 162,810 3,110,214 (121,558) 803,972 124,949 679,023 (232,902) 768,283 140,736 627,547 $ 13,138,637 $ (1,225,520) $ 11,913,117 $ 1,203,495 $ 10,709,622 75 331 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 6 - Long -Term Debt (Continued) A. Governmental Activities (Continued} 2012 General Obligation Refunding Bonds The City issued $4,885,000 of general obligation bonds, 2012 General Obligation Refunding Bonds, on August 1, 2012 to refund the 2002 General Obligation Bonds. No 2002 General Obligation Bonds remain outstanding. The bonds mature annually through August 1, 2028 in the amounts ranging from $235,000 to $395,000 beginning August 1, 2003. The interest of the bonds is payable semi-annually on each February 1 and August 1, commencing February 1. 2004. The interest rate of the bonds ranges from 2.00% to 3.500%. The bonds are payable solely from and secured by ad valorem taxes of all property subject to taxation by the City. The bonds are subject to optional and mandatory early redemption provisions. As of June 30, 2020, the outstanding balance is $3,080,000. The annual debt service requirements for the 2012 General Obligation Refunding Bonds outstanding at June 30, 2020 are as follows: Year Ending June 30, Principal Interest Total 2021 $ 290,000 $ 94,225 $ 384,225 2022 300,000 85,375 385,375 2023 315,000 76,150 391,150 2024 330,000 66,475 396,475 2025 340,000 56.425 396,425 20 26-2 02 9 1.5 05, 000 106,576 1 , 611, 5 7 6 Total $ 3,080,000 $ 485,226 5 3,565,226 Section 108 Bonds The City issued $6,900,000 of HUD 108 Bonds, Series A on August 7, 2003 to provide funds for the construction of a fire station. The bonds mature annually through 2024 in the amount ranging from $170,000 to $635,000 beginning in 2005. The interest of the bonds is payable semi-annually on each February 1 and August 1, commencing February 1, 2004. As of June 30, 2020, the outstanding balance is $2,175,000. The annual debt service requirements for the Section 108 Bonds outstanding at June 30, 2020 are as follows: Year Ending June 30, Principal Interest Total 2021 $ 485,000 $ 47,804 $ 532,804 2022 520,000 36,893 556,893 2023 565,000 23,861 588,861 2024 605,00.0 8,470 613.470 Total $ 2.175.000 $ 117,028 $ 2.292,028 76 332 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 6 - Long -Term Debt (Continued) A. Governmental Activities (Continued) 2017 Clean Energy Bonds and 2017 Lease Revenue Bonds In July 2017, the National City Joint Powers Financing Authority ("NCJPFA"), pursuant to a facilities lease and facilities sublease with the City of National City, issued $1,800,000 of taxable clean renewable energy bonds under Section 54C(a) of the Internal Revenue Code and $3,723,602 of tax-exempt bonds to finance the cost of an energy efficiency and renewable energy program under an Energy Services Agreement with Ameresco, Inc. The bonds were purchased by Banc of Atnerica Leasing & Capital, LLC. Principal and interest payments on the bonds are the responsibility of the City and are payable semi-annually on each December 1 and June 1, commencing December 1, 2017. The annual debt service requirements for the 2017 taxable Clean Energy Bonds outstanding at June 30, 2020 are as follows: Year Ending June 30, Principal Interest Total 2021 $ - $ 86,940 $ 86,940 2022 86,940 86,940 2023 - 86,940 86,940 2024 84,635 85,923 170,558 2025 90,313 81,767 172,080 2026-2030 545,313 336,370 881,683 2031-2035 728,174 185,498 913,672 2036-2037 351,565 21,460 373,025 Total $ 1,800,000 $ 971,838 $ 2,771,838 The annual debt service requirements for the 2017 Lease Revenue Bonds outstanding at June 30, 2020 are as follows: Year landing June 30, Principal Interest Total 2021 $ 162,810 $ 89,543 $ 252,353 2022 176,433 84,939 261,372 2023 190,720 79,954 270,674 2024 120,936 75,151 196,087 2025 130,427 71,735 202,162 2026-2030 811,135 297,683 1,108,818 2031-2035 1,125,341 166,560 1,291,901 2036-2037 555,222 19,480 574,702 Total $ 3,273,024 $ 885,045 $ 4,158,069 77 333 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 6 — Long -Term Debt (Continued) A. Governmental Activities (Continued) Notes Payable San Diego County Regional Communication System In 2017, the County of San Diego and certain local governments, including the City, entered into an agreement for the implementation, governance, and cost for the Next Generation Regional Communication System ("RCS"). The NGRCS replaces, modernizes, and updates the old regional communication system, and provides effective and reliable voice radio communications for routine intra- and inter -agency operations as well as inter -agency communications throughout the region during mutual aid and disaster operations. The RCS includes the following subsystems: a bunked voice system, microwave backhaul network, and a conventional voice system. The City entered into an agreement with the County of San Diego for the purchase of RCS and to share backbone infrastructure cost. The amount financed for this project was $1,270,762 at an annual interest rate of 2.79% for a total cost of $1,473,799. Beginning June 1, 2017, and each year thereafter for ten years, City of National City will make an annual payment of $147,380. The annual debt service requirements for the San Diego County RCS Notes Payable outstanding at June 30, 2020 are as follows: Year Ending June 30, Principal Interest Total 2021 2022 2023 2024 2025 2026 $ 124,949 128,435 132,0I9 135,702 139,488 143,379 Total $ 803,972 $ 22,431 18,945 15,361 11,678 7,892 4,001 $ 147,380 147,380 147,380 147,380 147,380 147,380 $ 80,308 $ 884,280 78 334 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 6 - Long -Term Debt (Continued) A. Governmental Activities (Continued) Capital Leases Honeywell Lease Fleet Vehicle Lease - Internal Service Funds Fleet Vehicle Lease - general Total Honeywell Lease Classification Balance Debt Debt Balance Due within Due in More July 1, 2019 Issued Retired June 30, 2020 One Year Than One Year $ 890,235 $ - $ (130,741) $ 759,494 $ 137,332 $ 622,162 18,559 92,391 $ 1,001,185 $ (18,559) - - - (83,602) 8,789 3,404 5,385 $ (232,902) $ 768,283 $ 140,736 $ 627,547 A fifteen -year contract was entered into on March 16, 2010 for various energy efficiency improvements, such as the installation of a new cooling town with variable speed fans (Civic Center), boiler replacement (Civic Center and Police Station), VFD (Police Station), and rooftop package unit replacement (Public Works, Police Station and MLK Community Center). Quarterly payments in arrears of principal and interest are $43,101. The final payment will be made in 2025. The balance at June 30, 2020 on this contract was $759,495. The future minimum lease obligation and the net present value of these minimum lease payments as of June 30, 2020, are as follows: Enterprise Car Lease Year Ending June 30, Principal Interest Total 2021 $ 137,332 $ 35,073 $ 172,405 2022 144,258 28,147 172,405 2023 151,532 20,873 172,405 2024 159,172 13,232 172,404 2025 167,200 5,205 172,405 Total $ 759,494 $ 102,530 $ 862,024 A ten-year contract was entered into during 2015 with Enterprise Fleet Management, Inc. to lease approximately 74 vehicles for City -use with each vehicle having a five-year payment plan. The balance at June 30, 2020 was $8,788. The future minimum lease obligation and the net present value of these minimum lease payments as of June 30, 2020, are as follows: Year Ending June 30, Principal Interest Total 2021 $ 3,404 $ 509 $ 3,913 2022 3,650 262 3,912 2023 1,735 32 1,767 Total $ 8,789 $ 803 $ 9,592 79 335 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 6 — Long -Term Debt (Continued) B. Fiduciary Funds A summary of changes in fiduciary funds long-term debt for the year ended June 30, 2020 is as follows: Classification Balance Debt Debt Balance Due within Due in More July 1,2019 Issued Retired June 30, 2020 One Year Than One Yeat 2017A Tax Allocation Refunding Bonds $ 42,907,000 $ - $ (2,918,000) $ 39,989,000 $ 2,991,000 $ 36,998,000 2017B Tax Allocation Refunding Bonds 2,470,000 (198,000) 2,272,000 203,000 2,069,000 Total $ 45,377,000 $ $ (3,116,000) $ 42,261,000 $ 3,194,000 $ 39,067,000 2017 Series A and B Tax Allocation Refunding Bonds In September 2017, the Successor Agency to the Community Development Commission as the National City Redevelopment Agency issued $45,874,000 in Tax Allocation Refunding Bonds, Series 2017A, and $2,669,000 in Tax Allocation Refunding Bonds, Series 2017B, to redeem the 2005B and 2011 Tax Allocation Bonds and the 1999 Tax Allocation Housing Bonds, respectively. The 2017 Series A bonds mature on August 1, 2032, and bear an interest rate of 2.49% per annum. The 2017 Series B bonds mature on August 1, 2029, and bear an interest rate of 2.36% per annum. Principal is payable annually on August 1 for both series of bonds. Interest is payable semi- annually for both series of bonds on February 1 and August 1. The aggregate debt service payments of the new debt are $9,877,886 less than the old debt. The issuance of the new debt and refunding of the old debt resulted in an economic gain (the difference between the net present value of the old debt and the new debt service payments) of approximately $9,497,037. The annual debt service requirements for the 2017 Series A Tax Allocation Bonds outstanding at June 30, 2020 are as follows: Year Ending June 30, Principal Interest Total 202I $ 2,991,000 $ 958,562 $ 3,949,562 2022 2,923,000 884,933 3,807,933 2023 2,996,000 811,242 3,807,242 2024 3,065,000 735,783 3,800,783 2025 3,139,000 658,543 3,797,543 2026-2030 15,120,000 2,147,698 17,267,698 2031-2033 9,755,000 361,875 10,116,875 Total $ 39,989,000 $ 6,558,636 $ 46,547,636 80 336 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 6 — Long -Term Debt (Continued) B. Fiduciary Funds (Continued) 2017 Series A and B Tax Allocation Refunding Bonds (Continued The annual debt service requirements for the 2017 Series .B Tax Allocation Bonds outstanding at June 30, 2020 are as follows: Year Ending June 30, Principal Interest Total 2021.$ 203,000 $ 51,223 $ 254,223 2022 208,000 46,374 254,374 2023 212,000 41,418 253,418 2024 221,000 36,308 257,308 2025 224,000 31,057 255,057 2026-2030 1,204,000 72,265 1,276,265 Total $ 2,272,000 $ 278,645 $ 2,550,645 Pledged Revenues The Successor Agency has pledged tax revenues to the repayment of the RDA's debts transferred to it on February 1, 2012 through the final maturity of the Bonds, or early retirement of the Bonds, whichever comes first. Tax revenues consist of property tax revenues allocated to the Redevelopment Property Tax Trust Fund (RPTTF) for the Successor Agency that is maintained by the County of San Diego Auditor and Controller. The amounts so allocated are those that would have been allocated to the RDA had the RDA not been dissolved. The Auditor and Controller (A&C) then distributes RPTTF revenues to the Successor Agency based on Recognized Obligation Payment Schedules (ROPS) as approved by the California State Department of Finance (DOF) and after deducting amounts for A&C administrative costs and amounts required to be paid under tax -sharing agreements unless the payment of such amounts has been subordinated to payment of debt services on the Bonds. Each ROPS covers a one fiscal year period and includes the applicable debt service payments on the Bonds. In fiscal year 2020, the amount of property tax revenue deposited to the RPTTF for the Successor Agency totaled $22,055,924. After deductions for County administrative fees and pass -through payments, the RPTTF revenue available for distribution to the Successor Agency was $16,960,711. The actual amount of RPTTF revenue authorized by the State Department of Finance to be distributed to the Successor Agency was $1,204,954. This distribution took into account previously allocated, but unspent RPTTF in previous ROPS periods and did not affect the ability of the Successor Agency to meet its debt service obligation. Total debt service for all Tax Allocation Refunding Bonds (TARBs) in fiscal year 2020 was $4,204,015, 25% of the RPTTF revenue available for distribution to the Successor Agency. Beyond fiscal year 2020 and through final maturity in Fiscal year 2033, these annual payments will gradually decline from $4.2 million in fiscal year 2021 to $3.3 million in fiscal year 2033. The percentage of available RPTTF required for debt service will also gradually drop as total payments decrease and the amount of available RPTTF grows as a result of expected growth in assessed values attributable to the former redevelopment area. 81 337 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 7 — Compensated Absences A summary of changes in compensated absences for the year ended June 30, 2020 is as follows: Classification Balance Balance Due within Due in More July 1, 2019 Additions Deletions June 30, 2020 One Year Than One Year Compensated Absences $ 3,940,063 $ 2,212.996 $ (2,397,792) $ 3,755,267 $ 2,397,792 $ 1,357.475 Total $ 3,940,063 $ 2212.996 $ (2.397.792) $ 3.755 267 $ 2,397,792 $ 1,357.475 The City's liability for vested and unpaid compensated absences (accrued vacation) has been accrued and amounts to $3,755,267 at June 30, 2020. For the governmental activities compensated absences are generally liquidated by the General Fund. Compensated absences at June 30, 2020 are obligations of the following funds: General Fund $ 3,755.267 Total $ 3.755,267 Note 8 — Other Required Fund Disclosures At June 30, 2020, the following funds had deficit fund equity: Fund Type Special Revenue Fund Fiduciary Fund Funds Deficit CDBG Successor Agency To the Community Development Commission ofNational City Private -Purpose Trust Fund (16,426) $ (29,035,456) CDBG Special Revenue Fund — The CDBG Special Revenue Fund had a deficit of $(45,744) resulting from program expenses for the year ended June 30, 2020. The deficit will be eliminated via funding drawdowns from HUD/CDBG programs. Community Development Commission as the National City Redevelopment Agency (the "Successor Agency") Private -Purpose Trust Fund - The Successor Agency to the Community Development Commission of National City Private -Purpose Trust Fund had an accumulated deficit of $(29,035,454). The City expects to repay the amount through tax increment. Governmental Activities - At June 30, 2020, the City had an unrestricted net position deficit of $(48,546,551) on. the Statement of Activities. This deficit was created from the implementation of GASB Statement 68 (Net Pension Liability) in fiscal year 2015 and the implementation of GASB Statement 75 (Total OPEB Liability) in 2017. The City expects to partially eliminate the deficit via increased pension contributions consistent with the amortization schedule provided by the City's pension administrator (CaIPERS). 82 338 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 9 — Self -Insurance Accrued Liabilities The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters; and workers' compensation claims. A self-insurance (internal service) fund is used to account for the City's insurance programs. Operating revenues of this fund represent payments from other City funds and are based upon estimated tunbrella insurance premium expenses, self-insurance losses and other operating expenses. The San Diego Pooled Insurance Program Authority (SANDPIPA) a joint powers authority (JPA), of which the City was a member, ceased operations on June 30, 2016. On July 1st, 2016 the City became self -insured for General Liability claims up to $250,000. This means that the City pays all claims up to $250,000 directly from City funds. Claims between the self -insured retention (SIR) of $250,000 up to $5,000,000 are covered by Public Risk Innovation, Solutions and Management (formerly California State Association of Counties - Excess Insurance Authority). The next layer of coverage is the Excess Layer which provides $20,000,000 and the final layer of coverage is the Optional Layer which provides $25,000,000. The total amount of coverage for the General Liability Program is $50,000.000. PRISM is located in Folsom, California. All the coverages are administered by PRISM. The City is completely self -insured for unemployment claims. The City is self -insured for Workers' Compensation claims up to $500,000 per occurrence. Claims between the self - insured retention level of $500,000 and. $5,000,000 are covered by PRISM which is reinsured by Great American. Claims in excess of $5,000,000 up to $50,000,000 are covered by PRISM which is reinsured by ACE American Insurance Company. Any statutory benefit in excess of $50,000,000 is covered by Liberty Insurance Corporation. There is no statutory limit for benefits paid on Workers' Compensation claims. During the current year, there were no significant reductions in insurance coverage from the prior year. For each of the past three fiscal years, the settlements have not exceeded the City's insurance coverage. At June 30, 2020, the City accrued $I1,356,000 of workers' compensation and general liability claims representing estimates of amounts to be paid for actual and incurred but not reported claims based upon past experience, modified for current trends and information. Allocated claim adjustment expenses are included in claim liabilities. While the ultimate amount of losses incurred through June 30, 2020 is dependent on future developments, based upon information from the City Attorney, outside counsel and others involved with the administration of the programs, City management believes that the aggregate accrual is adequate to cover such losses. For the past three years, no settlements or claims payments have exceeded the amount of the applicable coverage. For the past two fiscal years, the changes in the City's liability for claims payable are summarized as follows: The aggregate change in the balance of claims payable as recorded in the Governmental Activities were as follows: Claims liabilities - beginning balance Incurred claims, representing the total of a provision for events of the current fiscal year and any change in the provision for events of prior fiscal years Payments on claims attributable to events of both the current fiscal year and prior fiscal years Claims liabilities - ending balance 2020 2019 2018 $ 10,568,000 4,567,696 (3,779,696) $ 11,356,000 $ 9,395,000 $ 9,494,000 2,752,891 1,318,157 (1,579,891) (1,417,157) $ 10,568,000 $ 9,395,000 83 339 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10 — Pension Plans A. Summary Net Pension Liability Aggregate Net Pension Liability is reported in the accompanying Statement of Net Position as follows: M iscellaneous Plan Safety Plan Total Net Pension Liability $ 35,831,862 71,540,983 $ 107.372,845 Deferred Outflows ofResourees Deferred Outflows of Resources are reported in the accompanying Statement of Net Position as follows: Miscellaneous Plan Safety Plan Total Deferred emp loy er pension contributions made after measurement date Changes in assumptions Changes in experience Total pension -related deferred outflows 3,857.967 $ 7.377,466 - $ 1,833.125 178.567 $ 2,624.922 4.036,534 11.835,513 $ 11235,433 $ 1,833.125 $ 2,803,489 $ 1 5.872,047 Deferred Inflows ofResourees Deferred Inflows of Resources are reported in the accompanying Statement of Net Position as follows: Changes of assumptions Net difference bet ween projected and actual earnings on pension plan investments Differences between expected and actual experience Total pension -related deferred inflows Miscellaneous Plan $ Safety Plan Total $ 220.023 $ 379,740 599,763 $ 548,936 $ 733,096 1.,282,032 $ 230,782 230.782 $ 768.959 1.343,618 2.112.577 Pension Expense Pension expenses are included in the accompanying Statement of Revenues, Expenses, and Changes in Net Position as follows: Miscellaneous Plan Safety Plan Total Pension Expense $ 5,747,093 12,993.257 $ 18,740,350 84 340 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10 — Pension PIans (Continued) B. Ca1PERS Pension Plans Plan Description Substantially all City employees working the equivalent of 1,000 hours per fiscal year are eligible to participate in the Safety Plan and Miscellaneous Plan Agent multiple -employer defined benefit plans administered by California Public Employees Retirement System (Ca1PERS), which acts as a common investment and administrative agent for its participating member employers. Benefit Provisions under the Plans are established by State statutes within the Public Employee's Retirement Law. CaIPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CaEPERS website. Copies of the Ca1PERS annual financial report may be obtained from the Ca1PERS Executive Office — 400 P Street, Sacramento, CA 95814. Benefits Provided Ca1PERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. A classic CaIPERS member or PEPRA Safety member becomes eligible for Service Retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 or 12 consecutive months' fulltime equivalent monthly pay. Retirement benefits for classic miscellaneous employees are calculated as 2% to 2.7% of the average final 12 months compensation. Retirement benefits for PEPRA miscellaneous employees are calculated as 2% of the average final 36 months compensation. Retirement benefits for classic safety employees are calculated as 3% of the average final 12 months compensation. Retirement benefits for PEPRA safety employees are calculated as 2%-3% of the average final 36 months compensation. Participants are eligible for non -industrial disability retirement if they become disabled and have at least five years of credited service. There is no special age requirement. The standard non -industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service. Industrial disability benefits are not offered to miscellaneous employees. The City provides industrial disability retirement benefit to safety employees. The industrial disability retirement benefit is a monthly allowance equal to 50% of final compensation. An employee's beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre -retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death. 85 341 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10 — Pension Plans (Continued) B. Ca1PERS Pension Plans (Continued) Benefits Provided (Continued) Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate. Benefit terms provide for annual cost -of -living adjustments to each employee's retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by two percent. Employees Covered — At June 30, 2018, the valuation date, the following employees were covered by the benefit terms for each plan: Miscellaneous Safety Active employees 191 119 Transferred and terminated employees 231 71 Retired employ ees and beneficiaries 292 232 Contributions — Section 20814(c) of the California Public Employees' Retirement Law ("PERL") requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through Ca1PERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2019, the average active miscellaneous and safety employee contribution rates were 8% and 9% of annual pay, respectively, and the employer's contribution rates were 11.470% and 21.275% of miscellaneous and safety employee annual payroll, respectively. For the year ended June 30, 2020, the contributions were: Aggregate Miscellaneous Safety Total Contributions - employer $ 3,857,967 $ 7,377,466 $ 11,235,433 Net Pension Liability The City's net pension liability is measured as the total pension liability, less the pension plan's fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2019, using an annual actuarial valuation as of June 30, 2018 rolled forward to June 30, 2019 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. 86 342 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10 -- Pension Plans (Continued) B. CaLPERS Pension Plans (Continued) Net Pension Liability (Continued) Actuarial Assumptions — The total pension liabilities in the June 30, 2018 actuarial valuations were determined using the following actuarial assumptions: Actuarial Cost Method Entry Age Normal Actuarial Assumptions: Discount Rate 7.15% Inflation 2.75% Salary Increases Varies by Entry Age and Investment Rate of Return 7.15% net of pension plan investment and administrative expenses; includes Inflation Mortality Rate Table Derived using CaIPERS' Membership Data for all Funds. The mortality table used was developed based on CaIPERS' specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. Post Retirement Benefit Increase Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter. The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2018 valuations were based on the results of a January 2015 actuarial experience study for the period 1997 to 2014. Further details of the Experience Study can be found on the Ca1PERS website. Change of Assumption In accordance with GASB 68, the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate was changed from 7.5% (net of administrative expense in 2014) to 7.65% as of the June 30, 2015 measurement date to correct the adjustment which previously reduced the discount rate for administrative expenses. The discount rate was also changed from 7.65% as of the June 30, 2015 measurement date to 7.15% as of the June 30, 2016 measurement date. The Ca1PERS Board has approved reducing the discount rate to 7.00% by 2020. Discount Rate — The discount rate used to measure the total pension Iiability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of the discount rate for each plan, Ca1PERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees' Retirement Fund (PERF). The cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The stress test results are presented in a detailed report called "GASB Crossover Testing Report" that can be obtained at Ca1PERS website under the GASB 68 section. 87 343 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10 — Pension Plans (Continued) B. CalPERS Pension Plants (Continued) Net Pension Liability (Continued) The long-term expected rate of return on pension plan investments was determined using a building block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund (PERF) cash flows. Taking into account historical returns of all the Public Employees Retirement Funds' asset classes (which includes the agent plan and two cost -sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long -tern (11-60 years). using a building-block approach. Using the expected nominal returns for both short-term and long -tern, the present value of benefits was calculated for each PERF fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short -terry and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and rounded down to the nearest quarter of one percent. The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. The long-term expected rate of return by asset class for the measurement period ended June 30, 2019 was as follows: Asset Class New Strate c Real Return Real Return Allocation Years 1-101 Years 11+'- Global Equity 50.00% 4.80% 5.98% Fixed Income 28.00% 1.00% 2.62% Inflation Assets 0.00% 0.77% 1.81% Private Equity 8.00% 6.30% 7.23% Real Assets 13,00% 3.75% 4.93% Liquidity 1.00% 0.00% -0.92% 100% 'An expected inflation of2.0% used for this period 2An expected inflation of 2.92% used for this period 88 344 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10 — Pension Plans (Continued) B. CalPERS Pension Plans (Continued) Changes in the Net Pension Liability The following table shows the changes in net pension liability recognized over the measurement period: Miscellaneous Plan Balance at June 30, 2018 (Valuation Date) Changes in the year: Service cost Interest on the total pension liability Differences between expected and actual experience Benefit payments, including refunds of members contributions Contributions -employer Contributions - employees Net investment income Administrative expenses Net changes Total Pension Liability $ 130,108,693 2,212,767 9,170,414 147,608 (6,210,287) Plan Fiduciary Net Position $ 95,176,365 (6,210,287) 3,370,946 1,041,592 6,286,416 (67,699) Net Pension Liability $ 34,932,328 2,212,767 9,170,414 147,608 (3,370,946) (1,041,592) (6,286,416) 67,699 5,320,502 4,420,968 899,534 Balance at June 30, 2019 (Measurement Date) $ 135,429,195 $ Safety Plan 99,597,333 f $ 35,831,862 Balance at June 30, 2018 (Valuation Date) Changes in the year: Service cost Interest on the total pension liability Changes of assumptions Differences between expected and actual experience Benefit payments, including refunds of members contributions Plan to plan resource movement Contributions - employer Contributions - employees Net investment income Administrative expenses Net changes Total Pens ion Liability $ 201,696,572 4,023,972 14,344,993 1,773,685 (9,705,935) 10,436,715 Plan Fiduciary Net Net Pension Position Liability $ 133,738,191 $ 67,958,381 4,023,972 14,344,993 1,773,685 (9,705,935) 6,484,462 (6,484,462) 1,371,743 (1,371,743) 8,798,970 (8,798,970) (95,127) 95,127 6,854,113 3,582,602 Balance at June 30, 2019 (Measurement Date) $ 212,133,287 140,592,304 $ 71,540,983 89 345 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10—Pension Plans (Continued) B. Ca1PERS Pension Plans (Continued) Changes in the Net Pension Liability (Continued) Sensitivity of the Aggregate Net Pension Liability to Changes in the Discount Rate - The following presents the City's net pension liability, calculated using the discount rate, as well as what the City's net pension liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate: Plan's Aggregate Net Pension Liability/(Asset) Discount Rate - 1% Current Discount Discount Rate + 1% (6.15%) Rate (7.15%) (8.15) Miscellaneous Plan $ 53.526,837 $ 35,831,862 $ 21.193,868 Safety Plan $ 100.616.279 $ 71,54(1.983 $ 47.703,523 Aggregate Total $ 154,143,116 $ I07,372,845 $ 68.897,393 Pension Plan Fiduciary Net Position — Detailed information about each pension plan's fiduciary net position is available in theseparately issued Ca1PERS financial reports. Pension Expense and Deferred Culows/Inflows of Resources Related to Pensions For the year ended June 30, 2020, the City recognized pension expense in the amounts of $5,747,093 and $12,993,257, for the Miscellaneous and Safety plans, respectively. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over five years straight-line. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period. The Expected Average Remaining Service Lifetime ("EARSL") is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSLs for the Miscellaneous and Safety plans, respectively, for the 2018-19 measurement period are 2.7 and 3.2 years, respectively, which was obtained by dividing the total service years of 1,858 and 1,332, respectively, (the sum of remaining service lifetimes of the active employees) by 694 and 422, respectively, (the total number of participants: active, inactive, and retired). 90 346 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10 — Pension Plans (Continued) B. Ca1PERS Pension Plans (Continued) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued1 At June 30, 2020 the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Miscellaneous Plan Deferred outflows Deferred inflows of Resources of Resources Contributions after measurement date $ 3,857,967 $ Changes of assumptions Difference between expected and actual experience 178,567 Difference between projected and actual earning on pension plan investments Total (220,023) (548,936) Safety Plan 4,036,534 $ (768,959) Contributions after measurement date Changes of assumptions Difference between expected and actual experience Difference between projected and actual earning on pension plan investments Deferred outflows Deferred inflows of Resources of Resources 7,377,466 $ 1,833,125 2,624,922 (379,740) (230,782) (733,096) Total $ 11,835,513 $ (1,343,6I8) Aggregate Totals Contributions aver measurement date Changes of assumptions Difference between expected and actual experience Difference between projected and actual earning on pension p Ian investments Deferred outflows Deferred inflows of Resources of Resources 11,235,433 $ 1,833,125 2,803,489 (599,763) (230,782) (1,282,032) Total $ 15,872,047 $ (2,112,577) 91 347 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 10 — Pension Plans (Continued) B. CalPERS Pension Plans (Continued) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued), For the Miscellaneous Plan and Safety Plan, $3,857,967 and $7,377,466, respectively, were reported as deferred outflows of resources related to pensions resulting from City's contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30, Deferred Outflows/ (Inflows) of Resources Miscellaneous Safety Total 2021 $ 277,407 $ 3,385,950 $ 3,663,357 2021 (794,959) (297,460) (1,092,419) 2022 (160,314) (108,015) (268,329) 2023 87,474 133,954 221,428 2024 - - Therenfter $ (590,392) $ 3,114,429 $ 2,524,037 Note 11— Other Postemployment Benefits Plan Description The City provides postemployment health benefits through a single -employer defined benefit plan administered by the City. The City provides a fixed dollar contribution towards retiree health benefits for approximately 70 retirees. In addition, 294 employees are currently working and earning service credit for eligibility for a City contribution for retiree health benefits. To be eligible for a City contribution, an employee must retire from the City and commence pension benefits under PERS on or after age 50 with at least 20 years of service (five years for management and executive employees) with the City. The City provides a fixed dollar monthly contribution equal to $10 ($20 for management, executive, and safety employees) times years of service. Employees may receive the contribution to use towards non -City health insurance, if evidence of coverage is provided. The City's contribution is payable to Medicare eligibility. Management and executive employees are eligible for the City's contribution during their lifetime. Eligibility Employees are eligible for retiree health benefits if they retire from the City on or after age 50 with at least 20 years of service. Membership of the plan consisted of the following at June 30, 2020, the date of the latest actuarial valuation: Active plan members Retirees 294 70 Total 364 92 348 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 11— Other Postemployment Benefits (Continued) Total OPEB Liability The City's total OPEB liability was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2020. The total OPEB liability at June 30, 2020 was: Total OPEB liability $ 5,684,713 Total OPEB liability $ 5,684,713 Actuarial Assumptions The total OPEI3 liability in the June 30, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Discount Rate 2.66% Inflation 2.50% Aggregate payroll increases 3.00% Expected Tong -term investment rate of return n/a Mortality, Termination, and Disability CaIPERS 1991-2014 Mortality Improvement Scale Modified MP-2014, which converge to ultimate mortality improvement rates in 2022. Pre -retirement turnover Ranging from 0.01% to 17.42% based on termination rates under the CaIPERS pension plan. Ilealthcarr' Trend Rate An annual healthcare cost trend rate of 6.5% initially reduced by decrements to an ultimate of 5.0% therefore. The actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2007 through June 30, 2014.. Discount Rate The discount rate used to measure the total OPEB liability was 3.15 percent at the measurement date of June 30, 2020. It was changed from 3.50 percent at the measurement dated of June 30, 2018. This discount rate is the mid -point, rounded to five basis points, of the range of 3-20 year municipal bond rate indices; S&P Municipal bond 20 Year High Grade Rate Index, Bond Buyer 20-Bond GO Index, and Fidelity GO AA 20 Year Bond Index. 93 349 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 1 1— Other Postemployment Benefits (Continued) Change in the Total OPEB Liability Balance at June 30.2019 Changes Recognized for the Measurement Period: Service Cost Interest on the total OPEB liability Changes ofbenefit terms Difference between expected and actual e>petience Changes of assumptions Contributions from the employer Net investment income Administrative expenses Benefit payments Total OPEB Liability $ 5,302.749 190.082 169,175 267,125 (244,418) Net Chances during July 1, 2019to June 30, 2020 381,964 Balance at June 30, 2020 (Measurement Date) Sensitivity of the Total OPEB Liability to Changes in the Discount Rate $ 5,684,713 The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.15 percent) or 1-percentage- point higher (4,15 percent) than the current discount rate: Plan's Total OPEB Liability Discount Rate -1% (1.66%) Current Discount Rate (2.66%) Discount Rate + 1% (3.66%) $ 6,177,295 $ 5,684,71.3 $ 5,045,290 Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (5.5 percent decreasing to 4.0 percent) or 1-percentage-point higher (7.5 percent decreasing to 6.0 percent) than the current healthcare cost trend rates: Plan's Total OPEB Liability Discount Rate - 1% Healthcare Cost Trend Rates (5.5% decreasing (6.5% decreasing to 4.0%) to 5.0%) Discount Rate + 1% (7.5% decreasing to 6,0%) $ 5.552.040 $ 5.684,713 $ 5,582.736 94 350 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 11— Other Postemployment Benefits (Continued) Contributions The contribution requirements of plan members and the City are established by and may be amended by City Council. The contribution required to be made under City Council and labor agreement requirements is based on a pay-as-you- go basis (i.e., as medical insurance premiums become due). For fiscal year 2020, the City contributed $244,418 to the plan for current premiums. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2020, the City recognized OPEB expense of$357,138. At June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Res ources Difference between expected and actual experience $ - $ 131,755 Changes of assumptions 178,397 Total $ 178,397 $ 131,755 Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows: Measurement Period Deferred Outflows/ Ended June 30 (Inflows) of Resources 2021 2022 2023 2024 2025 Thereafter (2,119) (2,119) (2,119) (2,119) (2,119) 57,237 $ 46,642 95 351 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 12 — Commitments and Contingencies Litigation The City is presently involved in certain matters of litigation that have risen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize. Grants The City participates in a number of federally assisted grant programs, including those from HUD, US Department of Justice, US Department of Treasury, US Department of Transportation, and the US Department of Education. Receipts from these grant programs are subject to audit to determine if the monies were expended in accordance with appropriate statues, grant terms and regulations. The City believes no significant liabilities will result should any audits be performed. Contractual Conunitnents The City has contractual and regulatory commitments that will result in expenses in future fiscal years. These include operating and capital contractual commitments. As of June 30, 2020, the City had contractual commitments with a remaining balance of approximately $30,196,540. The following table represents the City's contractual commitments by contract type. Capital lease $ 768.283 Construction 9,849,627 Consulting services 17,295,127 Legal services 55,780 Professional services 2.227.723 Total contractual commitments $ 30,196.540 96 352 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 13 — Classification of Fund Balances The City classifies fund balances, as shown on the Balance Sheet — Governmental Funds as of June 30, 2020 as follows: Major Funds Housing Choice Housing Other Voucher Sewer Other Authority Governmental General Housing Program Service Special Revenue Special Revenue Funds Total Nonspendable Land held for resale $ 3,909,182 $ - $ Inventories and prepaid items I7,317 - $ - $ - $ - $ 3,909,182 25,805 - 43,122 Total nonspendable 3,926,499 25,805 3,952,304 Restricted Housing - 12,288,704 512,539 - 42,828 60,575,990 - 73,420,061 Debt service 535,169 - 1,064,272 1,599,441 Community development 20,000 - 1,919,827 1,939,827 Public safety - - - 223,085 223,085 Transportation - 1,653,289 1,653,289 General services - - 19,760,837 - 806,247 20,567,084 Section 115 trust 9,537,721 - 9,537,721 Total restricted 10,092,890 12,288,704 512,539 19,760,837 42,828 60,575,990 5,666,720 108,940,508 Committed Facilities maintenance 2,400,000 - 2,400,000 Economic contingency 9,085,066 - - 9,085,066 Total committed 11,485,066 - - 11,485,066 Assigned Accrued employee benefits 3,755,267 - - 3,755,267 Community development 323,912 - - 323,912 Public safety 46,166 - - - 46,166 Transportation 1,080,712 - 1,080,712 General Services 1,921,679 - - 1,921,679 Public health 1,537 - - 1,537 'total assigned 7,129,273 7,129,273 Unassigned (deficit) 16,294,668 (16,426) 16,278,242 Total fund balances $ 48,928,396 $ 12,288,704 $ 512,539 $ 19,760,837 $ 42,828 $ 60,601,795 $ 5,650,294 $ 147,785,393 Categorization of Reserves under Adopted City Policies All unassigned amounts in the City's General Fund are considered reserves under internal City policies. The City maintains the following committed reserve: 1) Economic Contingency Reserve — represents funds that are set -aside for use only in exceptional circumstances such as catastrophic events that could negatively impact the financial condition of the City. Funding represents 20% of the next year's operating expenditures, and no drawdowns have ever been executed on this reserve. City Policy requires a 4/5 vote of the City Council by resolution to authorize draws on this reserve. The amount of the contingency reserve as of June 30, 2020 was $9,085,066. 2) Facilities Maintenance Reserve — represents funds that are set aside for future building maintenance and/or replacement costs. The funding represents approximately 5% of the total acquisition cost of the City's building assets. City Policy requires City Council approval for all transfers and expenditures therefrom. The amount of Facilities Maintenance Reserve as of June 30, 2020 was $2,400,000. 97 353 of 483 City of National City Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2020 Note 14 — Prior Period Adjustments The fund balance in certain governmental and internal service funds has been restated as of July 1, 2019 in order to group certain non -major governmental funds with the General Fund and to move compensated absences from internal service funds to the Government -Wide Statement of Net Position as follows: Bejuning fund balance. as previously reported Prior period adjustments: To group General Capital Outlay Fund with General rand To roue Parr and Recreation Capital Outlay Fund with General Fund To remove compataated absences allocation to internal service funds. lie jnnine fund balance. as restated Note 15 — COVID-19 Parlas and Information Motor General Recreation Facilities Liability S3stems Vehicle Capital Outlay Capital Outlay Btainlenance Insurance Maintenance Services General Special Revenue Special Revenue Internal Service Internal Service Internal Ser,iee internal Service Fund Fund Fund Fond Fund Fund Fund S 49,004,355 S 7,682 S 3,810 $ 339,076 $ 3,640,366 S 1,320.789. S 442,163 7,682 3,810 (7,6871 - (3.810) 29,544 3,167 31 933 33,099 $ 49,015,347 S - 5 - 3 368,6220 $ 3.643.533 5 1.35 721 S 477,762 In December 2019, a novel strain of coronavirus has spread around the world resulting in business and social disruption. The coronavirus was declared a Public Health Emergency of International Concern by the World Health Organization on January 30, 2020. The operations and business results of the City could potentially be adversely affected by this global pandemic. The extent to which the coronavirus may impact business activity or investment results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of the coronavirus and the actions required to contain the coronavirus. While the disruption is currently expected to be temporary, there is considerable uncertainty around the duration of the closings. However, the related financial impact on the City and the duration cannot be estimated at this time. Note 16 — Subsequent Events Coronavirus Relief Funding On June 29, 2020, the State approved the budget and authorized the Department of Finance to allocate $1,289,065,000 to address the public health and public safety impacts of COVID-19 including homelessness. Pursuant to the provisions of Control Section 11.90, cities with populations between 300,000 and 500,000 were allocated $225 million and cities with populations of less than 300,000 were allocated $275 million. Based on the City's population, the City is allocated $766,745 and will be received in six installments starting July 2020. 98 354 of 483 REQUIRED SUPPLEMENTARY INFORMATION 99 355 of 483 f CALIFORNIA N . JAI LCi acm XNCORPORATEi -J This page intentionally left blank 100 356 of 483 City of National City Required Supplementary Information (Unaudited) Budgetary Information For the Year Ended June 30, 2020 The City follows these procedures in establishing the budgetary data reflected in the required supplementary information and other supplementary information budgetary comparison schedules: The City Council adopts a two-year operating budget, with appropriations for the first year only. The annual budget provides for the general operations of the City. In includes all proposed expenditures and inter -fund transfers, and the means of financing them. The Council also approves any amendments to appropriations throughout the year, generally at the mid -year budget review in February. This "appropriated budget" covers substantially all City expenditures, with the exception of capital improvement projects, which expenditures constitute a legally authorized "non -appropriated budget." The legal level of budgetary control is the fund level. The budget figures used in the required supplementary information are both original and final budgeted amounts. The final budget amount includes any amendments adopted during the year. Formal budgetary integration is employed as a management control device. Commitments for materials and services, such as purchase orders and contracts, are recorded during the year as encumbrances to assist in controlling expenditures. Appropriations which are unencumbered lapse at year end. City Council approval is required to include any unencumbered appropriations at year end in the following fiscal year's budget as continuing appropriations. Budget for the General and special revenue funds are adopted on a basis substantially consistent with accounting principles generally accepted in the United States of America. Accordingly, actual revenue and expenditures can be compared with related budgeted amounts without any significant reconciling items. Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. Further, Section 5 of Article XIIIB allows the City to designate a portion of fund balance for general contingencies to be used in future years without limitation. 101 357 of 483 City of National City Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule — General Fund For the Year Ended June 30, 2020 REVENUES: Taxes Licenses and permits Fines and forfeitures Use of money and property Intergovernmental Charges for services Other revenues Budgeted Amounts Original Final $ 46,952,893 793,339 1,498,650 649,000 1,359,000 3,087,879 716,957 Total revenues 55,057,718 EXPENDITURES: $ 46,952.893 793,339 1,498,650 649,000 1,359.000 3,109.879 781,957 55.144,718 Current: General government 6.565,962 12,834,933 Public safety 40,141,993 40,199,561 Transportation 3,623,185 3,950,113 Community development 417,008 492,357 Health 99,528 99,528 Culture and leisure 4.224,070 4.244,085 Capital outlay 5,028,000 6,450,595 Debt service: Principal 256,013 256,013 Interest and fiscal charges 206,224 206,224 Total expenditures 60,561,983 68,733,411 REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCLNG SOURCES (USES ) Loss on sale of land held for resale Pass -through payment to other agencies Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund Balance: Beginning of y ear End of year (5,504,265) (13,588,693) Actual Amounts $ 48,327.441 1,096,395 2.945,717 2.516.371 2,889.985 3.101,961 971,081 Variance with Final Budget 1,374,548 303,056 1,447,067 1,867,371 1,530,985 (7,918) 189,124 61.848.951 6,704.233 9,237,733 38,573,445 3,319,634 477.457 3.666,563 3,343,679 342,616 206,224 59,167,351 2,681.600 (589,700) (631,285) 5,500 (1.553,566) 3,597,202 1,626,116 630,479 14,900 99,528 577,522 3,106,916 (86,603) 9.566,060 16.2 70.293 (589,700) (631.285) 5.500 (1.55 3.566) (2.769.051) (2.769,051) S (5,504,265) $ (13,588,693) (87,451) $ 13,501.242 49,015.847 $ 48,928,396 102 358 of 483 City of National City Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule — Housing Special Revenue Fund For the Year Ended June 30, 2020 REVENUES: Use of money and property Total revenues Budgeted Amounts Actual Variance with Original Final Amounts Final Budget $ $ 264,252 $ 264,252 264,252 264,252 EXPENDITURES: Current: Community development 202,717 202,717 170,108 32,609 Total expenditures 202,717 202,717 170,108 32,609 Net change in fund balance $ (202,717) $ (202,717) 94,144 $ 296,861 Fund Balance: Beginning of year End of year 12,194,560 $ 12,288,704 103 359 of 483 City of National City Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule — Housing Choice Vouchers Special Revenue Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Orginal Final Amounts Final Budget REVENUES: Fines and forfeitures $ 6,000 $ 6,000 $ 28,198 $ 22,198. Use of money and property 102 102 Intergovernmental 13,320,154 13.320,154 12,983,051 (337,103) Other revenues - - 225,942 225,942 Total revenues 13,326,154 13.326,154 13,237,293 (88,86 I) EXPENDITURES : Current: Community development 13,080.495 13,080,495 12,908,252 (172.243) Total expenditures 13,080,495 13,080,495 12,908,252 (172.243) Net change in fund balance $ 245,659 $ 245,659 329,041 $ 83,382 Fund Balance: Beginning of year 183.498 End of year $ 512,539 104 360 of 483 City of National City Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule — Sewer Service Special Revenue Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES : Licenses and pennits $ 10,000 $ 10,000 $ 432,791 $ 422,791 Use of money and property 60,400 60,400 500,401 440,001 Charges for services 6,958,000 6,958,000 9,197,459 2,239,459 Other revenues - 846,147 846,147 Total revenues 7,028,400 7,028,400 10,976,798 3,948,398 EXPENDITURES: Current: General Government 94,903 2,900 (92,003) Transportation 15,000 15,000 14,191 (809) Health 7,916,849 8,028,829 7,255,002 773,827 Capital outlay 2,000,000 2,024,642 360,390 1,664,252 Total expenditures 9,931,849 10,163,374 7,632,483 2,345,267 REVENUES OVER (UNDER) EXPENDITURES Net change in fund balance Fund Balance: Beginning of year End of year (2,903,449) (3,134,974) 3,344,315 6,293,665 $ (2,903,449) $ (3,134,974) 3,344,315 $ 6,479,289 16,416,522 $ 19,760,837 105 361 of 483 City of National City Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule - Other Special Revenue Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES : Taxes $ 479,568 $ 479,568 $ 441,721 $ (37,847) Licenses and permits 359,000 359,000 1,201,526 842,526 Fines and forfeitures - 29,700 29,700 Use of money and property - 38,036 38,036 Intergovernmental 102.500 8,553,011 5,003,655 (3,549,356) Charges for services 114.000 114,000 628,238 514,238 Other revenues - 59,468 68,495 9,027 Total revenues 1.055.068 9,565,047 7,411,371 (2,153,676) EXPENDITURES : Current: General Government 260.340 2,525,525 1,097,537 1,427,988 Public Safety 323,532 1:2 16,844 681,389 535,455 Transportation 15,428 15,428 Community Development 42,019 48,810 26,225 22,585 Health 115,291 154,018 108,071 45,947 Culture and Leisure 161,931 230,023 186.249 43,774 Capital outlay - 15,610,753 7,893,152 7,717,601 Total expenditures REVENUES OVER (UNDER)EXTEND ITURES OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing sources (uses) 903,113 19,801.401 10,008,051 9,793,350 151,955 (10.236,354) (2,596,680) 7,639.674 273,976 273,976 (5,500) (5,500) 268,476 268.476 Net change in fund balance $ 151,955 $ (10,236,354) (2,328,204). $ 7,908.150 Fund Balance: Beginning of year End of year 2,371,032 42,828 100 362 of 483 City of National City Required. Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule — Housing Authority Special Revenue Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES : Use of money and property $ $ - $ 774,795 $ 774,795 Other revenues 23,563 23,563 Total revenues EXPENDITURES: Current: Community Development 175,000 Total expenditures 185,000 798,358 798,358 173,191 1,809 173,191 11,809 REVENUES OVER (UNDER) EXPENDITURES (185,000) 625,167 810,167 OTHER FINANCING (USES): Transfers out Total other financing (uses) (491,625) (491,625) (491,625) (491,625) Net change in fund balance $ $ (185,000) 133,542 $ 318,542 Fund Balance: Beginning of year End of year 60,468,253 $ 60,601,795 107 363 of 483 City of National City Required Supplementary Information (Unaudited) (Continued) Schedules of Changes in the Net Pension Liability and Related Ratios Last Ten Fiscal Years* For the Year Ended June 30, 2020 City Miscellaneous PIan Total pension liability 2018-19 2017-18 2016-17 2019-16 2014-15 2013-14 Service cost $ 2,212,761 $ 2,282,129 $ 2,118,219 Interest on total pension liability 9,170,414 8,802,231 8,488,639 Changes in assumptions (953,437) 7,027,519 Differences between expected and actual experience 147,608 371,057 (1,231,712) Changes in benefit teens Benefit payments, includingrefunds of employee contrihutions (6,210,287) (5,885,469) (5,555,553) $ 1,825,480 8,268,915 (975,368) (5,253,955) $ 1,811,929 $ 1,937,067 7,985,539 7,748,026 (1,944,963) (1,691,529) (4,995,309) (4,818,483) Net change in tohd pension liability 5,320,502 4,616,511 10,847,112 Total pension liability -beginning Total pension liability - ending (a) 130,108,693 125,492,182 114,645,070 3,865,072 1,165,667 4,866,610 110,779,998 109,61.4,33 1 104,747,721 $ 135,429,195 $ 130,108,693 $ 125,492,182 $ 114,645,070 $ 110,779,998 $ 109,614,331 Plan fiduciary net posi Lion Contributions - employer $ 3,370,946 $ 2,953,421 Contributions - employee 1,041,592 933,458 Investment income (net of administrative expenses) 6,286,416 7,575,282 Benefit payments (6,210,287) (5,885,469) Plan to plan resource movement - (221) Administrative expenses (67,699) (l06,601) Net change in plan fiduciary net position 4,420,968 5,169,870 Plan fiduciary net position - beginning 95,176,365 90,006,495 Plan fiduciary net position - ending (b) $ 2,854,739 $ 2,367,548 $ 2,056,706 858,901 820,175 895,912 9,198,616 415,274 1,859,I84 (5,555,553) (5,253,955) (4,995,309) (135) (122,207) (51,433) (94,900) $ 1,956,344 767,784 12,778,105 (4,818,483) 7,234,496 (1,702,576) (278,407) 10,683,750 82,771,999 84,474,575 84,752,982 74,069,232 $ 99,597,333 $ 95,176,365 $ 90,006,495 $ 82,771,999 $ 84,474,575 $ 84,752,982 Net pension liability - ending (a)-(b) $ 35,831,862 $ 34,932,328 Plan fiduciary net position as a percentage of the total pension liability Covered payroll Net pension liability as a percentage of covered - employee pay roll $ 35,485,687 $ 31,873,071 $ 26,305,423 $ 24,861,349 73.54% 73.15% 71.72% 72.20% 76.25% 77.32% $ 11,582,137 $ 11,885,467 $ 10,724,047 $ 10,126,926 $ 9,742,081 $ 9,853,337 309.37% 293.91% 330.90% 314.74% 270.02% 252.31% Notes to Schedule: Benefit changes: the figures above do not include any liability impact that may have resulted from plan clumps which occurred after June 30, 2014. This applies for voluntary benefit changes as well as any offers of Two Years of Additional Service Credit (a.k.a. Golden Handshakes). Changes in assumptions: In 2018, demographic assumptions and inflation rate were changed in accordance with the Cs1PIRS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7,65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expenses) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate. Historical information is presented only for measurement periods for which GASB 68 is implemented. 108 364 of 483 City of National City Required Supplementary Information (Unaudited) (Continued) Schedules of Changes in the Net Pension Liability and Related Ratios (Continued) Last Ten Fiscal Years * For the Year Ended June 30, 2020 City Safety Plan Total pension liability 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Service cost $ 4,023,972 Interest on total pension liability 14,344,993 Changes in assumptions Differences between expected and actual experience 1,773,685 Changes in benefit teens Benefit payments, unctudingrefunds of employee contributions (9,705,935) Net change in total pension liability 10,436,715 Total pension liability - beginning Total pension liability - ending (a) Plan fiduciary net position Contributions - employer Contributions - employee Investment income (net of administiative expenses) Benefit payments Plan to plan resource movement Administrative expenses Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Net pension liability - ending (a)-(b) Plan fiduciary net position as a percentage of the total pension liability $ 4,006,475 $ 3,730,242 $ 3,143,806 $ 3,185,323 13,628,845 12,890,015 12,491,615 12,122,308 (922,226) 10,998,755 (3,049,086) 3,413,390 (1,384,693) (2,263,779) (2,416,366) (9,097,472) (8,735,024) (8,368,654) (8,022,441) (7,719,645) $ 3,249,200 11,761,448 11,029,012 17,499,295 5,002,988 1,819,738 201,696,572 190,667,560 173,168,265 168,16 5,277 166, 34 5,539 7,291,003 159,054,536 $ 212,133,287 $ 201,696,572 $ 190,667,560 $ 173,168,265 $ 168,165,277 $ 166,345,539 $ 6,484,462 $ 5,838,406 1,371,743 1,357,948 8,798,970 10,630,597 (9,705,935) (9,097,472) (311) (95,127) (567,286) $ 5,748,626 $ 1,238,443 12,739,410 (8,735,024) (169,427) 4,978,090 1,109,955 584,907 (8,368,654) 135 (71,013) $ 4,463,726 1,047,676 2,587,755 (8,022,441) (131,164) $ 4,190,264 983,295 17,466,806 (7,719,645) 6,854,113 8,161,882 10,822,028 133,738,191 125,576,309 114,754,281 (1,766,580) 116,520,861 (54,448) 14,920,720 116,575,309 101,6 54, 589 $ 140,592,304 $ 133,738,19.1 $ 125,576 309 $ 114,754,281 $ 116,520 861 $ 116 575 309 $ 71,540,983 $ 67,958,381 $ 65,091,251 $ 58,413,984 $ 51,644,416 $ 49,770,230 66.28% 66.31% 65.86% 66.27% 69.29% 70.08% Covered payroll $ 13,034,797 $ 12,898,732 $ 11,939,450 $ 11,157,745 $ 11,228,972 $ 10,916,911 Net pension liability as a percentage of covered - employee payroll 548,85% 526.86% 545.18% 523.53% 459,92% 455.90% Notes to Schedule: Benefit changes: the figures above do not include any liability impact that may have resulted from plan chances which oceuned after June 30, 2014, This applies for voluntary benefit changes as well as any offers of Two Years of Additional Service Credit (a.k.a. Golden Handshakes). Changes in assumptions: In 2018, demographic assumptions and inflation rate were changed in accordance with the CaIPERS Bxperienco Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expenses) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate. Historical information is presented only for measurement periods for which GASB 68 is implemented. 109 365 of 483 City of National City Required Supplementary Information (Unaudited) (Continued) Schedules of Pension Contributions Last Ten Fiscal Years * For the Year Ended June 30, 2020 City Miscellaneous Pion - 172 2019-20 2018-19 2017.18 2016-17 2015-16 2014-15 2013-14 Actuarially determined contribution $ 3,657,967 $ 3,371,801 $ 2,953,694 $ 2,854,739 $ 2,367,548 $ 2,056,706 $ 1,956,344 Contributions in relation to the actuarially determined contributions r (3,857,967) (3,371,801) (2,953,694) (2,854,739) (2,367,548) (2,056,705) (1,956,344) Contribution deficiency (excess) $ - $ • $ - $ - $ $ $ Covered payroll2'3 $ 11,929,601 $ 11,562,137 $ 11,865,467 $ 10,724,074 $ 10,126,926 $ 9,742,081 $ 9,853,337 Contributions as a percentage of covered payroll a 32.34% 29.11% 24.85% 26,62% 23.38% 21.11% 19.85% historical information is required only for measurement periods for which GASES 68 is implemented. Employers are assumed to make eontnbutions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially detcm» ned contributions. 2 Covered Payroll represented above is based on pensionable eamings provided by the employer, However, GASB 68 defines covered -employee payroll as the total payroll of employees that are provided pensions through the pension plan. Accordingly, if pensionable earnings are different than total eamings for covered -employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recaleulate the required payroll -related ratios. 3 Payroll f omprior year, $11,582,137, was assumed to increase by the 3,0(P4 payroll growth assumption. Notes tc Schedule Valuation date: 6130/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6131/2013 6/30/2012 The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2014-15 were from the June 30, 2012 public agency valuations. Methods and assumptions used to determine contribution lutes: Actuarial cost method Entry Age Nornul Amortization method/period For details, see June 30, 2016 Funding Valuation Report Asset valuation method Market value of assets. For details, see the June 30, 2015 Funding Valuation Report. Inflation 2.75% Salary increases Varies by entry age and service Payroll growth 3.00°/e Investment rate of return 7,375%, net of pension plan investment and administrative expenses, including inflation Retirement age The probabilities of retirement are based on the 2014 CaIPERS Experience study for the period from 1997 to 2011. Mortality The probabilities of mortality are based on the 2014 Ca!PERS Experience Study for the period from 1997 to 2011. Pre -retirement and Post -retirement mortality rates include 2D years of projected mortality improvement using Scale BB published by the Society of Actuaries. 110 366 of 483 City of National City Required Supplementary Information (Unaudited) (Continued) Schedules of Pension Contributions (Continued) Last Ten Fiscal Years * For the Year Ended June 30, 2020 City Safety Plan - 4923 20I9-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 Actuarially determined contribution $ 7,377,466 $ 6,484,462 $ 5,838,406 $ 5,748,626 $ 4,978,090 $ 4,463,726 $ 4,190,264 Contributions in relation to the actuarially determined contributions r (7,377,466) (6,484,462) (5,838,406) (5,748,626) (4,978,090) (4,463,726) (4,190,264) Contribution deficiency (excess) $ - $ - $ • $ - $ - $ $ Covered payrol113 $ 13,425,841 $ 13,034,797 $ 12,898,732 $ 11,939,450 1 11,157,745 $ 11,228,972 $ 10,916,911 Contributions as a percentage of covered payroll' 54,95% 49,75% 45,26% 48.15% 44.6254 39,7554 38.38% Historical information is required only for measurement periods for which GASH 68 is implemented. r Employers are assumed to make contributions equal to the actuarially determined contributions. However, some employers may choose to make additional contributions towards their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. a Covered Payroll represented above is based on pensionable earnings provided by the employer. However, GASH 68def1nes covered -employee payroll as the total payroll of employees that are provided pensions through the pension plan, Accordingly, if pensionable earnings are different than total earnings for covered -employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll -related ratios. 3 Payroll from prior year, $13,034,797, was assumed to increase by the 3.00% payroll growth assumption, Notes to Schedule Valuation data: 6/30/2018 6/302017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/302012 The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2014-15 were from theJttne 30, 2012 public agency valuations. Methods and assumptions used to determine contribution Cates: Actuarial cost method Retry Age Normal Amortization method/period For details, see June 30, 2016 Funding Valuation Report Asset valuation method Market value of assets, For details, see thejune 30, 2015 Funding Valuation Report. Inflation 2.75% Salary increases Varies by entry age and service Payroll growth 3.00% Investment rate of return 7.50%, net of pension plan investment and administrative avulses, including inflation Retirement age The probabilities of retirement are based on the 2014 CaIPBRS Experience study for the period from 1997 to 2011. Mortality The probabilities of mortality are Lased on the 2014 Ca1PERS Experience Study for the period from 1997 to 2011. Pre -retirement and Post•retirentent mortality rates include 20 years of projected mortality inrproveatent using Scale BB published by the Society of Actuaries. 111 367 of 483 City of National City Required Supplementary Information (Unaudited) (Continued) Schedule of Changes in Net OPEB Liability and Related Ratios Last Ten Fiscal Years For the Year Ended June 30, 2020 Measurement period, year ending 6/30/2020 6/30/2019' 6/30/2018' 6/30/20171 Total OPEB liability Service cost $ 190,082 $ 201,904 $ 196,023 $ 189,577 Interest 169,175 187,984 177,753 170,970 Changes of benefit terms - Differences between expected and actual experience (131,753) Changes of assumptions 267,125 (25,433) (53,296) Benefit payments, including refunds of member contributions (244,418) (198,069) (168,761) (166,220) Net change in total OPEB liability 381,964 34,633 151,719 194,327 Total OPEB liability - beginning 5,302,749 5,268,116 5,116,397 4,922,070 Total OPEB liability - ending (a) $ 5,684,713 $ 5,302,749 $ 5,268,116 $ 5,116,397 OPEB fiduciary net position Contributions - employer $ 244,418 $ 198,069 $ 168,761 $ 166,220 Net investment income Benefit payments, includingrefunds of member contributions (244,416) (198,069) (168,761) (166,220) Administrative expense Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) Plan net OPEB liability -ending (a) -(b) $ 5,684,713 $ 5,302,749 $ 5,268,116 $ 5,116,397 Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00% Covered payroll $ 24,062,015 $ 23,361,180 $ 23,316,000 $ 23,316,000 Plan net OPEB liability as a percentage of covered payroll 23.63% 22.70% 22.59% 21.94% Historical information is presented only for periods for which GASB 75 is implemented. 112 368 of 483 SUPPLEMENTARY INFORMATION 113 369 of 483 CAA. lF:O.I3N#,A.; pN °�h_ ' fVr c3c1 �-- 'ATcoaPORATtA f This page intentionally left blank. 114 370 of 483 NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS: Library Fund - This fund is used to account for the operation of the National City Library. Parks Maintenance Fund - This fund is used to account for operating and maintaining the City's parks. Library Capital Outlay Fund - This fund is used to account for revenues from real property transfer taxes set aside to finance capital outlay and capital improvement expenditures of the National City Library. Gas Tax Fund - This fund is used to account for the City's share of state gas tax revenue restricted for street improvement and maintenance. Community Development dock Grant (CDBG) Fund - This fund is used to account for federal funds received from HUD — Community Development Block Program. HOME Program Fund - This fund is used to account for federal funds received from HUD HOME Program, Asset Forfeiture Fund - This fund is used to account for the receipt and expenditure of funds provided by the federal goverrnnent's asset seizure fund to be used exclusively for law enforcement purposes. Nutrition Fund - This fund is used for operations of the Nutrition grant. 115 371 of 483 TIE fry ZATCORPORATSD This page intentionally kJ? blank. 116 372 of 483 NON -MAJOR GOVERNMENTAL FUNDS DEBT SERVICE FUNDS: Library Bonds Debi Service Fund - This fund is used to account for debt service of the Library. CAPITAL PROJECT FUNDS: STP LocalTransNet Highway Fund - This fund is used to account for funds received from the San Diego Association of Governments ("SANDAG") for TransNet projects. Proposition "A" Capital Projects Fund - This fund is used to account for the City's allocation of the 2% transactions and use tax imposed by Proposition "A" (San Diego Transportation Improvement Program Ordinance) passed by the voters in San Diego County. State -Local Partnership Fund - This fund is used to account for the receipt and expenditures of funds provided by the State under the State -Local Transportation Partnership Program. PERMANENT FUNDS: Library Endowment Fund - This fund is used to account for a financial endowment made to the Library. Only interest earned on the principal can be used to purchase books and other library materials. 117 373 of 483 City of National City Combining Balance Sheet Non -Major Governmental Funds June 30, 2020 Library Special Revenue Library Parks Capital Maintenance Outlay Gas Tax CDBG ASSETS Cash and investments $ 21,147 $ 47,865 $ 491,023 $ 1,780,878 $ Receivables: Accounts - - Taxes 5,377 6,265 7,597 164,792 Interest - - 4,427 - Loans - 32,6I1 Due from other governments - 69,746 Total assets $ 26,524 $ 54,130 $ 498,620 $ 1,950,097 $ 102,357 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 65 $ 10,324 $ 881 $ 402,749 $ 18,531 Accrued liabilities 14,718 33,806 28,175 7,654 Due to other funds - - - 92,598 Unearned revenue - Total liabilities Fund Balances: Restricted Unassigned (deficit) 14,783 44,130 881 430,924 118,783 11,741 10,000 497,739 1,519,173 (16,426) Total fund balances 11,741 10,000 497,739 1,519,173 (16,426) Total liabilities, deferred inflows of resources, and fund balances $ 26,524 $ 54,130 $ 498,620 $ 1,950,097 $ 102,357 (Continued) 118 374 of 483 City of National City Combining Balance Sheet (Continued) Non -Major Governmental Funds June 30, 2020 Special Revenue Debt Service Capital Projects HOME Asset Library STP Local/ Program Forfeiture Nutrition Bonds TransNet ASSETS Cash and investments $ 749,832 $ 222,575 $ 43,952 $ 1,062,610 $ Receivables: Accounts 188,745 - 13 Taxes - 1,662 _ Interest 1,755 510 - Loans 1,200,598 Due from other governments 31,427 Total assets $ 1,983,612 $ 223,085 $ 232,697 $ 1,064,272 $ 13 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 62,697 $ $ 29,575 $ Accrued liabilities - 59,539 Due to other funds - Unearned revenue 1,088 Total liabilities 63,785 89,114 Fund Balances: Restricted 1,919,827 223,085 143,583 1,064,272 13 Unassigned (deficit) - - - - Total fund balances 1,919,827 223,085 143,583 1,064,272 13 Total Liabilities, deferred inflows of resources, and fund balances $ 1,983,612 $ 223,085 $ 232,697 $ 1,064,272 $ 13 (Continued) 119 375 of 483 City of National City Combining Balance Sheet (Continued) Non -Major Governmental Funds June 30, 2020 Capital Projects Permanent Total Other State -Local Library Governmental Proposition A Partnership Endowment Funds ASSETS Cash and investments $ 200,658 $ 133,812 $ 54,007 $ 4,808,359 Receivables: Accounts 188,758 Taxes - 185,693 Interest 456 304 123 7,575 Loans - 1,233,209 Due from other governments 101,173 Total assets $ 201,114 $ 134,116 $ 54,130 $ 6,524,767 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 112,073 $ Accrued liabilities Due to other funds Unearned revenue Total liabilities $ 636,895 143,892 92,598 1,088 112,073 874,473 Fund Bnlances: Restricted 89,041 134,116 54,130 5,666,720 Unassigned (deficit) (16,426) Total fund balances 89,041 134,116 54,130 5,650,294 Total liabilities, deferred inflows of resources, and fund balances $ 201,114 $ 134,116 $ 54,130 $ 6,524,767 (Concluded) 120 376 of 483 City of National City Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non -Major Governmental Funds For the Year Ended June 30, 2020 Special Revenue Library Parks Capital Library Maintenance Outlay Gas Tax CDBG REVENUES: Taxes $ 872,349 $ 1,016,509 $ 158,078 $ 2,511,939 $ - Fines and forfeitures - Use of money and property - 45,662 - Intergovernmental 5,310 6,188 - 791,989 Charges for services - - Other revenues 20,050 9,748 Total revenues 877,659 1,022,697 178,128 2,557,601 801,737 EXPENDITURES: Current: General government 379,148 Public safety Transportation - 1,433,504 - Community development 32,010 - - 275,350 Health - 12,680 - Culture and leisure 1,635,494 1,450,138 37,759 - 9,169 Capital outlay - - 571,737 - Debt service: Principal - 455,000 Interest and fiscal charges 52,036 56,883 Total expenditures 1,667,504 1,514,854 416,907 2,005,241 796,402 REVENUES OVER (UNDER) EXPENDITURES (789,845) (492,157) (238,779) 552,360 5,335 OTHER FINANCING SOURCES: Transfers in 787,570 487,020 - Total other financing sources 787,570 487,020 CHANGES IN FUND BALANCES (2,275) (5,137) (238,779) 552,360 5,335 FUND BALANCES: Beginning of year 14,016 15,137 736,518 966,813 (21,761) End of year $ 11,741 $ 10,000 $ 497,739 $ 1,519,173 $ (16,426) (Continued) 121 377 of 483 City of National City Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non -Major Governmental Funds For the Year Ended June 30, 2020 REVENUES: Taxes Fines and forfeitures Use of money and property Intergovernmental Charges for services Other revenues Special Revenue Debt Service Capital Projects HOME Asset Library STP Local/ Program Forfeiture Nutrition Bonds TransNet $ $ - $ - $ 347,895 $ - 5,322 - 62,661 7,955 - 108,906 - 308,757 - 593 75,440 Total revenues 171,567 13,870 384,197 347,895 EXPENDITURES: Current: General government 21,257 Public safety - Transportation - Community development 120,673 Health - Culture and leisure 4,900 Capital outlay 330,644 Debt service: Principal Interest and fiscal charges Total expenditures 146,830 382,717 886,820 384,725 12,077 839,849 34,894 280,000 104,725 REVENUES OVER (UNDER) EXPENDITURES 52,073 24,737 (368,847) (502,623) (36,830) OTHER FINANCING SOURCES: Transfers in 491,625 Total other financing sources - 491,625 CHANGES IN FUND BALANCES 24,737 (368,847) (10,998) (36,830) FUND BALANCES: Beginning of year 1,895,090 591,932 154,581 1,101,102 13 End of year $ 1,919,827 $ 223,085 $ 143,583 $ 1,064,272 $ 13 (Continued) 122 378 of 483 City of National City Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non -Major Governmental Funds For the Year Ended June 30, 2020 REVENUES: Taxes Fines and forfeitures Use of money and property Intergovermnental Charges for services Other revenues Total revenues EXPENDITURES: Current: General government Public safety Transportation Community development Health Culture and leisure Capital outlay Debt service: Principal Interest and fiscal charges Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES: Transfers in Total other financing sources CHANGES IN FUND BALANCES FUND BALANCES: Beginning of year End of year Capital Projects Permanent Total Other State -Local Library Governmental Proposition A Partnership Endowment Funds $ $ $ $ 4,906,770 5,322 6,906 3,567 126,751 888,000 1,439 2,110,589 105,831 894,906 3,567 1,439 7,255,263 1,062,327 400,405 52,073 1,433,504 440,110 852,529 3,172,354 1,964,708 735,000 213,644 1,062,327 - 9,264,327 (167,421) 3,567 1,439 (2,009,064) 1,766,215 1,766,215 (167,421) 3,567 1,439 (242,849) 256,462 130,549 52,691 5,893,143 $ 89,041 $ 134,116 $ 54,130 $ 5,650,294 (Concluded) 123 379 of 483 City of National City Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Library Special Revenue Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES: Taxes $ 846,472 $ 846,472 $ 872,349 $ 25,877 Intergovernmental 5,000 5,000 5,310 3I0 Total revenues 851,472 851,472 877,659 26,187 EXPENDITURES: Current: Community Development - 32,010 (32,010) Culture and leisure 1,913,442 1,935,842 1,635,494 300,348 Total expenditures I,913,442 1,935,842 1,667,504 268,338 REVENUES OVER (UNDER) EXPENDITURES (I,061,970) (1,084,370) (789,845) 294,525 OTHER FINANCING SOURCES: Transfers in 787,570 787,570 Total other financing sources 787,570 787,570 CHANGE IN FUND BALANCE $ (1,061,970) $ (1,084,370) (2,275) $ 1,082,095 FUND BALANCE: Beginning of year 14,016 End of year $ 1I,741 124 380 of 483 City of National City Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Parks Maintenance Special Revenue Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES: Taxes $ 986,355 $ 986,355 $ 1,016,509 $ 30,154 Intergoveriunental 6,000 6,000 6,188 188 Total revenues 992,355 992,355 1,022,697 30,342 EXPENDITURES: Current: Health 13,180 13,180 12,680 500 Culture and leisure 1,531,031 1,538,199 1,450,138 88,061 Debt Service: Interest and fiscal charges 50,312 59,312 52,036 (7,276) Total expenditures 1,594,523 1,610,691 1,514,854 95,837 REVENUES OVER (UNDER) EXPENDITURES (602,168) (618,336) (492,157) 126,179 OTHER FINANCING SOURCES: Transfers in 487,020 487,020 Total other financing sources 487,020 487,020 CHANGE IN FUND BALANCE $ (602,168) $ (618,336) (5,137) $ 613,199 FUND BALANCE: Beginning of year 15,137 End of year $ 10,000 125 381 of 483 City of National City Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Library Capital Outlay Special Revenue Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES: Taxes $ 136,000 $ 136,000 $ 158,078 $ 22,078 Other revenues 40,000 40,000 20,050 (19,950) Total revenues EXPENDITURES: 176,000 176,000 178,128 2,128 Current: General Government 413,943 379,148 (34,795) Culture and leisure 72,700 72,700 37,759 34,941 Capital outlay 5,975 - 5,975 Total expenditures 72,700 492,618 416,907 75,711 CHANGE IN FUND BALANCE $ 103,300 $ (316,618) (238,779) $ 77,839 FUND BALANCE: Beginning of year 736,518 End of year 5 497,739 126 382 of 483 City of National City Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Gas Tax Special Revenue Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES: Taxes $ 2,671,258 $ 2,671,258 $ 2,511,939 $ (159,319) Use of money and property - - 45,662 45,662 Total revenues 2,671,258 2,671,258 2,557,601 (113,657) EXPENDITURES: Current: Transportation Capital outlay Total expenditures 1,588,634 1,030,455 1,588,634 1,433,504 155,130 2,306,676 571,737 1,734,939 2,619,089 3,895,310 2,005,241 1,890,069 CHANCE IN FUND BALANCE $ 52,169 $ (1,224,052) 552,360 $ 1,776,412 FUND BALANCE: Beginning of year End of year 966,813 $ 1,519,173 127 383 of 483 City of National City Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Community Development Block Grant (CDBG) Special Revenue Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES: Intergovernmental $ 842,964 $ 842,964 $ 791,989 $ (50,975) Other revenues - 9,748 9,748 Total revenues 842,964 842,964 801,737 (41,227) EXPENDITURES: Current: Community development 277,416 277,416 275,350 Culture and leisure 53,664 53,664 9,169 Debt Service: Principal 455,000 455,000 455,000 Interest and fiscal charges 56,883 56,883 56,883 Total expenditures 842,963 842,963 796,402 2,066 44,495 46,561 CHANGE IN FUND BALANCE $ 1 $ 1 5,335 $ FUND BALANCE: Beginning of year (21,761) End of year $ (16,426) 5,334 128 384 of 483 City of National City Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual HOME Program Special Revenue Fund For the Year Ended June 30, 2020 REVENUES: Use of money and property Intergovernmental Total revenues EXPENDITURES: Current: General government Community development Culture and leisure Total expenditures CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Budgeted Amounts Original Final $ - $ 511,487 511,487 511,487 511,487 101,311 295,040 127,988 476,785 397,279 397,280 626,578 1,169,105 (115,091) $ (657,618) Actual Amounts $ 62,661 108,906 171,567 21,257 120,673 4,900 146,830 Variance with Final Budget $ 62,661 (402,581) (339,920) (273,783) 356,112 392,380 474,709 24,737 $ 682,355 1,895,090 $ 1,919,827 129 385 of 483 City of National City Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Asset Forfeiture Special Revenue Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES: Fines and forfeitures $ 45,000 $ 45,000 $ 5,322 $ (39,678) Use of money and property - 7,955 7,955 Other revenues 593 593 Total revenues 45,000 45,000 13,870 (31,130) EXPENDITURES: Current: Public safety 53,571 52,073 1,498 Capital outlay 330,644 330,644 - Total expenditures - 384,215 382,717 1,498 CHANGE IN FUND BALANCE $ 45,000 $ (339,215) (368,847) $ (29,632) FUND BALANCE: Beginning of year 591,932 End of year $ 223,085 130 386 of 483 City of National City Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Nutrition Special Revenue Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES: Intergovernmental $ 300,000 $ 300,000 $ 308,757 $ 8,757 Other revenues 109,600 109,600 75,440 (34,160) Total revenues 409,600 409,600 384,197 (25,403) EXPENDITURES: Current: Community development - - 12,077 (12,077) Health 773,222 773,222 839,849 (66,627) Culture and leisure 17,702 17,702 34,894 (17,192) Total expenditures 790,924 790,924 886,820 (95,896) REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES: Transfers in Total other financing sources (381,324) (381,324) (502,623) (121,299) 491,625 491,625 491,625 491,625 CHANGE IN FUND BALANCE $ (381,324) $ (381,324) (10,998) $ 370,326 FUND BALANCE: Beginning of year 154,581 End of year $ 143,583 131 387 of 483 City of National City Schedule of Revenues, Expenditures, and Change in Fund Balance - Budget and Actual Library Bonds Debt Service Fund For the Year Ended June 30, 2020 Budgeted Amounts Actual Variance with - Original Final Amounts Final Budget REVENUES: Taxes $ 382,075 $ 382,075 $ 347,895 $ (34,180) Total revenues 382,075 382.075 347,895 (34.180) EXPENDITURES: Debt Service: Principal 280,000 280,000 280,000 Interest and fiscal charges 102,075 102,075 104,725 (2,650) Total expenditures REVENUES OVER (UNDER) EXPENDITURES CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year 382,075 382.075 384,725 (2,650) (36,830) (36,830) $ $ (36,830) $ (36,830) 1,101,102 $ 1,064,272 388 of 483 INTERNAL SERVICE FUNDS Internal Service Funds are used to finance and account for special activities and services performed by a designated City department for other departments on a cost reimbursement basis. Facilities Maintenance Fund - This fund is used to account for the costs of maintaining all City -owned buildings in a clean, safe, workable, and pleasant condition. Liability Insurance Fund - This fund is used to account for the costs of maintaining the City's workers' compensation and liability insurance programs. Information Systems Maintenance Fund - This fund is used to account for the costs of maintaining the City's computer -related information systems. Office Equipment Depreciation Fund - This fund is used to account for the costs to replace City office equipment. Telecommunications Revolving Fund - This fund is used to account for the costs of maintaining the City's telecommunications system. Motor Vehicle Services Fund - This fund is used to account fort the City's costs of preventative maintenance and repairs for all City vehicles including police, fire, general administrative, park, sewer and public works equipment. Equipment Replacement Reserve Fund - This fund is used to account for the costs to replace City general equipment. 133 389 of 483 City of National City Combining Statement of Net Position All Internal Service Funds June 30, 2020 Information Office Facilities Liability Systems Equipment Maintenance Insurance Maintenance Depreciation ASSETS Current assets: Cash and investments $ 375,470 $ 14,616,396 $ 1,022,877 $ 635,768 Accounts receivable 104,865 - Prepaid items and deposits 37,520 Total current assets 375,470 14,721,261 Noncurrent assets: Restricted cash and investments with fiscal agents 10,334 Capital assets, net 896,233 447,900 1,060,397 635,768 Total noncurrent assets Total assets LIABILITIES 906,567 447,900 1,282,037 14,721,261 1,508,297 635,768 Current liabilities: Accounts payable and accrued liabilities 199,950 178,687 Interest payable 9,399 Capital leases payable - due within one year 137,332 Claims payable - due within one year 3,779,696 Total current liabilities 346,681 3,779,696 178,687 Noncurrent liabilities: Capital leases payable - due in more than one year 622,162 Claims payable - due within one year 7,576,304 Total noncurrent liabilities 622,162 7,576,304 Total liabilities 968,843 11,356,000 178,687 NET POSITION Net investment in capital assets 136,739 447,900 Restricted for debt service 10,334 - Unrestricted 166,121 3,365,261 881,710 635,768 Total net position $ 313,194 $ 3,365,261 $ 1,329,610 $ 635,768 134 390 of 483 City of National City Combining Statement of Net Position (Continued) All Internal Service Funds June 30, 2020 Tele- Motor Equipment communications Vehicle Replacement Revolving Services Reserve ASSETS Total Current assets: Cash and investments $ I4,623 $ 730,386 $ 1,829,412 $ 19,224,932 Accounts receivable - 104,865 Prepaid items and deposits 37,520 Total current assets 14,623 730,386 1,829,412 19,367,317 Noncurrent assets: Restricted cash and investments with fiscal agents 10,334 Capital assets, net 5,212,783 6,556,916 Total noncurrent assets Total assets LIABILITIES 5,212,783 6,567,250 14,623 730,386 7,042,195 25,934,567 Current liabilities: Accounts payable and accrued liabilities 61,128 151,534 591,299 Interest payable 9,399 Capital leases payable - due within one year 137,332 Claims payable - due within one year 3,779,696 Total current liabilities - 61,128 151,534 4,517,726 Noncurrent liabilities: Capital leases payable - due in more than one year 622,162 Claims payable - due within one year 7,576,304 Total noncurrent liabilities - 8,198,466 Total liabilities 61,128 151,534 12,716,192 NET POSITION Net investment in capital assets - 5,212,783 5,797,422 Restricted for debt service - - 10,334 Unrestricted 14,623 669,258 1,677,878 7,410,619 Total net position $ 14,623 $ 669,258 $ 6,890,661 $ 13,218,375 135 391 of 483 City of National City Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds For the Year Ended June 30, 2020 OPERATING REVENUES: Charges for services Other Information Office Facilities Liability Systems Equipment Maintenance Insurance Maintenance Depreciation $ 2,932,151 $ 4,517,208 $ 2,326,393 $ Total operating revenues 2,932,151 4,517,208 2,326,393 OPERATING EXPENSES: Operations and administration Maintenance Depreciation Total operating expenses 965,731 1,835,375 150,749 2,951,855 4,629,848 165,632 719,863 1,416,118 213,524 4,795,480 2,349,505 Operating income (loss) (19,704) (278,272) (23,112) NONOPERATING REVENUES (EXPENSES): Interest expense Total nonoperating revenues (expenses) Income (loss) before transfers (40,722) (40,722) (60,426) (278,272) (23,112) TRANSFERS: Transfers in 5,000 Total transfers 5,000 Changes in net position (55,426) (278,272) (23,112) NET POSITION: Beginning of year (as restated, Note 14) 368,620 3,643,533 1,352,722 635,768 End of year $ 313,194 $ 3,365,261 $ 1,329,610 $ 635,768 136 392 of 483 City of National City Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) All Internal Service Funds For the Year Ended June 30, 2020 Tele- Motor Equipment communications Vehicle Replacement Revolving Services Reserve OPERATING REVENUES: Total Charges for services $ $ 1,178,584 $ 1,061,627 $ 12,015,963 Other 14,681 - 14,681 Total operating revenues 1,193,265 1,061,627 12,030,644 OPERATING EXPENSES: Operations and administration Maintenance Depreciation Total operating expenses 321,300 679,969 1,001,269 584,934 6,636,742 4,097,094 949,207 584,934 11,683,043 Operating income (loss) 191,996 476,693 347,601 NONOPERATING REVENUES (EXPENSES): Interest expense Total nonoperating revenues (expenses) Income (loss) before transfers TRANSFERS: Transfers in Total transfers Changes in net position NET POSITION: 191,996 191,996 (40,722) (40,722) 476,693 306,879 5,000 5,000 476,693 311,879 Beginning of year (as restated, Note 14) 14,623 477,262 6,413,968 12,906,496 End of year $ 14,623 $ 669,258 $ 6,890,661 $ 13,218,375 137 393 of 483 City of National City Combining Statement of Cash Flows All Internal Service Funds For the Year Ended June 30, 2020 Information Office Facilities Liability Systems Equipment Maintenance Insurance Maintenance Depreciation CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from other funds $ 2,932,620 $ 4,474,135 $ 2,326,393 $ Cash payments for goods and services (2,890,048) (4,141,504) (2,386,159) Other operating revenues Net cash provided by (used in) operating activities 42,572 332,631 (59,766) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Principal paid on capital lease (146,300) Acquisition of capital assets (28,295) Interest paid (42,339) Net cash (used in) capital and related financing activities (188,639) (28,295) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in Net cash provided by (used in) noncapital financing activities Net change in cash and cash equivalents 5,000 5,000 (141,067) 332,631 (88,061) CASH AND CASH EQUIVALENTS: Beginning of year 526,871 14,283,765 1,110,938 635,768 End of year $ 385,804 $ 14,616,396 $ 1,022,877 $ 635,768 RECONCILIATION TO STATEMENT OF NET POSITION: Cash and investments $ 375,470 $ 14,616,396 $ 1,022,877 $ 635,768 Restricted cash and investments with fiscal agents 10,334 - - - Total cash and cash equivalents $ 385,804 $ 14,616,396 $ 1,022,877 $ 635,768 138 394 of 483 City of National City Combining Statement of Cash Flows (Continued) Ali Internal Service Funds For the Year Ended June 30, 2020 CASII FLOWS FROM OPERATING ACTIVITIES: Cash received from other funds Cash payments for goods and services Other operating revenues Net cash provided by (used in) operating activities Tele- Motor Equipment communications Vehicle Replacement Revolving Services Reserve $ Total $ 1,178,584 $ 1,061,627 $ 11,973,359 (987,3I2) 34,896 (10,370,127) 14,681 14,681 205,953 1,096,523 1,617,913 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Principal paid on capital lease (146,300) Acquisition of capital assets - (459,611) (487,906) Interest paid (42,339) Net cash (used in) capital and related financing activities (459,611) (676,545) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in 5,000 Net cash provided by (used in) noncapital financing activities 5,000 Net change in cash and cash equivalents 205,953 636,912 946,368 CASH ANI) CASH EQUIVALENTS: Beginning of year 14,623 524,433 1,192,500 18,288,898 End of year $ 14,623 $ 730,386 $ 1,829,412 $ 19,235,266 RECONCILIATION TO STATEMENT OF NET POSITION: Cash and investments $ 14,623 $ 730,386 $ 1,829,412 $ 19,224,932 Restricted cash and investments with fiscal agents - - - 10,334 Total cash and cash equivalents $ 14,623 $ 730,386 $ 1,829,412 $ 19,235,266 139 395 of 483 City of National City Combining Statement of Cash Flows (Continued) All Internal Service Funds For the Year Ended June 30, 2020 Information Office Facilities liability Systems Equipment Maintenance Insurance Maintenance Depreciation RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss) $ (19,704) $ (278,272) $ (23,112) $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 150,749 213,524 Changes in operating assets and liabilities: Accounts receivable 469 (43,073) - Prepaids and deposits - (10,925) Accounts payable (70,053) (132,705) (226,999) Salaries payable (18,889) (1,319) (12,254) Claims payable 788,000 Total adjustments 62,276 610,903 (36,654) Net cash provided by (used in) operating activities $ 42,572 $ 332,631 $ (59,766) $ 140 396 of 483 City of National City Combining Statement of Cash Flows (Continued) All Internal Service Funds For the Year Ended June 30, 2020 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation Changes in operating assets and liabilities: Accounts receivable Prepaids and deposits Accounts payable Salaries payable Claims payable Total adjustments Tele- Motor Equipment communications Vehicle Replacement Revolving Services Reserve Total $ 191,996 $ 476,693 $ 347,601 584,934 949,207 (42,604) (10,925) 17,345 34,896 (377,516) (3,388) - (35,850) 788,000 13,957 619,830 1,270,312 Net cash provided by (used in) operating activities $ $ 205,953 $ 1,096,523 $ 1,617,913 141 397 of 483 Ca►LIFPI 1; .� JN ° JUC7- 3r1VC7ORiPORATSP This page intentionally left blank. 142 398 of 483 FIDUCIARY FUNDS AGENCY FUNDS The Agency Fund is used to account for assets held by the City in a trustee capacity for individuals, private organizations, other governments, and/or other funds. Cobra Insurance Fund - This fund is used to account for amounts collected by the City from retirees to pay their health insurance premiums. Miscellaneous Deposits - This fund accounts for all money collected to pay for certain deposits. 143 399 of 483 C 4,1- I F 0 . • TI JNIAltlerry This page intentionally left hltzlik. 400 of 483 City of National City Statement of Changes in Assets and Liabilities Agency Funds For the Year Ended June 30, 2020 Balance Balance July 1, 2019 Additions Deletions June 30, 2020 Cobra Insurance Fund Assets: Cash and investments $ 10,595 $ 26,007 $ $ 36,602 Total assets $ 10,595 $ 26,007 $ $ 36,602 Liabilities: Vouchers payable $ 10,595 $ 26,007 $ $ 36,602 Total liabilities $ 10,595 $ 26,007 $ $ 36,602 Miscellaneous Deposits Assets: Cash and investments $ 1,535,248 $ 442,043 $ $ 1,977,291 Total assets $ 1,535,248 $ 442,043 $ $ 1,977,291 Liabilities: Vouchers payable $ 29,250 $ 40,671 $ $ 69,921 Deposits payable 1,505,998 401,372 1,907,370 Total liabilities $ 1,535,248 $ 442,043 $ $ 1,977,291 Total - All Agencv Funds Assets: Cash and investments $ 1,545,843 $ 468,050 $ $ 2,013,893 Total assets $ 1,545,843 $ 468,050 $ $ 2,013,893 Liabilities: Vouchers payable $ 39,845 $ 66,678 $ $ 106,523 Deposits payable 1,505,998 401,372 - 1,907,370 Total liabilities $ I,545,843 $ 468,050 $ - $ 2,013,893 145 401 of 483 NATIO-XLICftT Z.ATCORpOftTP- Tliis page intentionally left blank. 146 402 of 483 STATISTICAL SECTION 147 403 of 483 C 41.1 FPINJA.:;. N Inv - INCORPORATO This page intentionally left blank. I -4S 404 of 483 CITY OF NATIONAL CITY, CALIFORNIA STATISTICAL SECTION JUNE 30, 2020 Statistical Section Financial Presentations included in the Statistical Section provide data and information on the financial, physical, and economic characteristics of the City of National City. The following schedules cover multiple fiscal years and provide readers with a broader and more complete understanding of the City and its financial affairs and economic condition. They also present detailed information as a context for understanding this year's financial statements, note disclosure, and required supplementary information. Financial Trends Page These schedules contain trend information to help readers understand and assess how the City's financial position has changed over time. Net Position by Component —Last Ten Fiscal Years 150 Changes in Net Position — Last Ten Fiscal Years 152 Fund Balances of Governmental Funds — Last Ten Fiscal Years 156 Changes in Fund Balance of Government Funds — Last Ten Fiscal Years 158 Revenue Capacity These schedules contain information to help readers understand and assess the City's local revenue sources. Assessed Value and Actual Value of Taxable Property — Last Ten Fiscal Years 160 2019/20 Use Category Summary 162 Property Tax Dollar Breakdown 163 2019/20 Roll Summary Taxable Property Values 164 Net Taxable Assessed Value History 165 Taxable Sales by Category — Last Ten Calendar Years 166 Property Tax Levies and Collections --Last Ten Fiscal Years 168 Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years 170 Principal Property Tax Payers — Current and Nine Years Ago 172 Sales Value History Single Family Residential Full Value Sales 173 Top 25 Sales Tax Producers 175 Debt Capacity These schedules present information to help readers understand and assess the City's debt burden and its ability to service current debt and to issue additional debt in the future. Ratio of Outstanding Debt by Type — Last Ten Fiscal Years 176 Direct and Overlapping Debt 179 Legal Debt Margin Information — Last Ten Fiscal Years 180 Pledged Revenue Coverage — Last Ten Fiscal Years 182 Demographic and Economic Information These schedules present economic and demographic indicators to help readers understand the environment within which the City's financial activities take place. Demographic and Economic Statistics — Last Ten Fiscal Years 185 Operating Information These schedules present information to help readers understand the City's operations and resources. Full -Time Equivalent City Government Employees by Function/Program — Last Ten Fiscal Years 186 Operating Indicators by Function/Program — Last Ten Fiscal Years 188 Capital Asset Statistics by Function/Program — Last Ten Fiscal Years 190 149 405 of 483 City of National City Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Govermnental Activities: Net Investment in Capital Assets Restricted for: General Services Community Development Public Safety Transportation Culture and Leisure/General Services Housing Debt Service Capital projects Investment in Section 115 trust Unrestricted Total governmental activities net position Business -type Activities: Net Investment in Capital Assets Restricted Community Development Public Safety Transportation Culture and Leisure Housing Debt Service Unrestricted Total business -type activities net position Primary Government: Net Investment in Capital Assets Restricted Unrestricted Total primary government net position 1 General Services category added in 2014 Fiscal Year 2011 2012 2013 2014 2015 $ 93,567,130 $ 100,450,699 $ 99,343,176 $ 108,881,192 $ 120,377,947 33,109,741 3,035,845 1,604,977 4,101,046 1,472,075 4,427,765 927,816 3,894,025 25,086,031 8,253,320 535,026 472,988 2,332,408 25,690,372 4,522,562 1,691,931 2,769,086 24,671,923 5,348,413 1,676,222 2,193,169 13,523,659 24,828,920 71,462,265 40,409,653 (34,896,708) $ 150,414,473 $ I67,868,576 $ 174,145,863 $ 183,964,796 $ 119,370,966 $ 4,939,455 1,631,621 $ 6,571,076 98,506,585 44,955,305 13,523,659 $ 156,985,549 $ 4,744,375 $ 4,760,761 1,982,828 1,953,838 265,456 $ 6,727,203 $ 105,195,074 42,588,957 26,811,748 $ 174,595,779 6,980,055 104,103,937 5,294,260 71,727,721 $ 181,125,918 $ 4,725,523 $ 4,926,410 2,121,988 4,502 1,876,125 98,698 $ 6,852,013 $ 6,901,233 113,606,715 36,795,939 40,414,155 $ 190,816,809 125,304,357 35,765,852 (34,798,010) $ 126,272,199 Source: City of National City Comprehensive Annual Financial Reports or financial statements 150 406 of 483 City of National City Net Position by Component (Continued) Last Ten Fiscal Years (accrual basis of accounting) Governmental Activities: Net Investment in Capital Assets Restricted for: General Services1 Community Development Public Safety Transportation Culture and Leisure/General Services Housing Debt Service Capital projects Section 115 trust Unrestricted Total governmental activities net position Business -type Activities: Net Investment in Capital Assets Restricted Community Development Public Safety Transportation Culture and Leisure Housing Debt Service Unrestricted Total business -type activities net position Primary Government: Net Investment in Capital Assets Restricted Unrestricted Total primary government net position General Services category added in 2014 Fiscal Year 2016 2017 2018 $ 134,444,245 $ 140,128,868 29,511,338 3,448,959 1,845,117 942,285 (26,157,042) $ 144,034,902 $ 4,905,110 2,031,385 99,478 $ 7,035,973 139,349,355 37,779,084 (26,057,564) $ 151,070,875 17,830,592 1,413,792 1,566,498 2,279,981 8,450,433 1,753,076 840,156 (31,330,173) $ 142,933,223 $ 4,995,791 1,422,433 763,085 (13,016) $ 7,168,293 145,124,659 36,320,046 (31,343,189) $ 150,101,516 2019 $ 141,748,074 $ 147,820,375 16,441,482 283,394 1,472,665 1,985,811 17,345,785 169,573 1,296,186 1,157,623 8,980,034 74,709,334 1,681,688 1,667,147 721,171 1,743,976 1,749,740 (33,783,858) (41,622,749) $ 139,530,461 $ 206,036,990 $ 5,003,945 $ 1,514,475 818,678 22,571 $ 7,359,669 146,752,019 33,899,398 (33,761,287) $ 146,890,130 2020 $ 155,772,400 20,181,707 20,000 223,085 13 75,339,888 1,599,441 2,038,653 1,749,740 (48,534,616) $ 208,390,311 147,820,375 155,772,400 99,839,364 101,152,527 (41,622,749) (48,534,616) $ 206,036,990 $ 208,390,311 Sources City of National City Comprehensive Annual Financial Reports or financial statements 151 407 of 483 City of National City Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Expenses: Governmental Activities: General government Public safety Transportation Community development Health Culture and leisure Interest and fiscal charges Depreciation expense (unallocated) Total governmental activities expenses Business -type Activities: Transportation Development Act1 Community development commission Kimball Towers Morgan Towers Total business -type activities expenses Total primary government expenses Fiscal Year 2011 2012 $ 6,813,807 32,287,471 3,642,820 19,204,057 6,846,972 5,734,894 4,091,247 $ 78,621,268 $ 2,313,011 $ 2,313,011 $ 80,934,279 Program Revenue: Government Activities: Charges for services: General government $ 2,924,037 Public safety 2,564,953 Transportation Community development 945,733 Health 7,418,448 Culture and leisure 216,746 Operating grants and contributions 16,763,058 Capital grants and contributions - Total governmental activities program revenue $ 30,832,975 Business -type Activities: Charges for services: Transportation Development Act1 Community development commission Kimball Towers Morgan Towers Operating grants and contributions Capital grants and contributions Total business -type activities prograrn revenue Total primary government program revenue Net Revenues (Expenses): Governmental activities Business -type activities Total Net Revenues (Expenses) $ 2,208,044 $ 2,208,044 $ 33,041,019 (47,788,293) (104,967) $ (47,893,260) $ 5,858,519 29,477,075 4,399,470 13,959,966 6,595,669 5,943,563 5,082,341 2013 $ 443,592 28,024,676 3,061,647 11,991,339 8,477,778 5,784,578 633,338 4,423,669 $ 71,316,603 $ 62,840,617 $ $ 2,181,928 $ 2,181,928 $ 73,498,531 $ 1,394,546 3,767,099 1,179,697 6,984,746 282,197 19,261,931 1,312,296 $ 34,182,512 2,334,863 $ 2,334,863 $ 36,517,375 (37,134,091) 152,935 $ (36,981,156) 1,089,698 1,177,596 $ 2,267;294 $ 65,107,911 $ 1,258,710 3,018,064 1,549,092 2,079,578 7,414,151 246,880 14,732,996 1,006,059 $ 31,305,530 2014 $ 5,240,947 29,045,583 6,315,524 11,669,866 7,026,857 6,712,036 439,367 2015 $ 6,299,372 31,522,488 6,737,292 11,603,528 7,416,697 6,349,578 407,194 $ 66,450,180 $ 70,336,149 $ $ 1,356,385 1,251,377 1,130,218 1,078,546 $ 2,486,603 $ 2,329,923 $ 68,936,783 $ 72,666,072 $ 2,371,861 3,150,630 2,195,535 2,994,274 7,534,320 199,493 15,818,335 6,284,789 $ 40,549,237 $ $ 1,073,082 1,241,253 $ 2,314,335 1,096,559 1,244,129 $ 3,101,468 3,807,824 1,863,599 3,260,501 9,522,136 353,740 12,508,5I7 11,399,349 $ 45,817,134 1,101,514 1,260,18I $ 2,340,688 $ 2,361,695 $ 33,619,865 $ 42,889,925 $ 48,178,829 (31,535,087) (25,900,943) 47,041 (145,915) $ (31,488,046) $ (26,046,858) National City Transportation Development Act operations discontinued during Fiscal Year 2007. (24,519,015) 3I,772 $ (24,487,243) Source: City of National City Comprehensive Annual Financial Reports or financial statements 152 408 of 483 City of National City Changes in Net Position (Continued) Last Ten Fiscal Years (accrual basis of accouuting) Expenses: Governmental Activities: General government Public safety Transportation Community development Health Culture and Leisure Interest and fiscal charges Depreciation expense (unallocated) Total governmental activities expenses Business -type Activities: Transportation Development Act1 Community development commission Kimball Towers Morgan Towers Total business -type activities expenses Total primary government expenses Fiscal Year 2016 $ 6,237,858 31,293,361 8,605,631 11,812,563 7,499,719 7,188,896 308,808 2017 2018 $ 7,379,307 $ 15,307,497 34,007,632 39,597,743 8,925,351 8,076,078 13,560,523 12,884,161 8,102,830 7,467,338 8,129,529 8,521,220 243,832 414,353 2019 $ 14,474,787 41,216,052 8,479,861 13,521,091 8,160,870 7,686,697 380,597 2020 $ 13,782,424 45,669,420 8,226,143 15,463,076 8,229,336 7,617,459 398,181 $ 72,946,836 $ 80,349,004 $ 92,268,390 $ 93,919,955 $ 99,386,039 $ $ 1,I60,095 1,113,885 $ 2,273,980 $ 75,220,816 1,166,521 1,141,607 $ 2,308,128 $ 82,657,132 1,187,232 1,102,742 $ 2,289,974 $ 94,558,364 $ $ 945,180 787,266 $ 1,732,446 $ $ 95,652,401 $ 99,386,039 Program Revenue: Government Activities: Charges for services: General government $ 5,081,812 $ 2,697,690 $ 2,543,350 $ 1,811,719 $ 1,633,483 Public safety 2,681,493 2,704,952 3,393,625 2,911,464 4,588,977 Transportation 1,344,988 1,218,156 1,640,930 2,556,059 2,559,252 Community development 1,908,755 2,105,289 3,320,354 4,461,949 5,390,051 Health 8,363,190 8,819,322 8,624,774 8,551,905 11,046,120 Culture and leisure 306,675 631,597 676,015 477,370 613,722 Operating grants and contributions 13,295,661 15,280,776 14,306,662 14,908,491 16,658,135 Capital grants and contributions 7,299,398 3,878,546 6,414,610 4,201,520 4,465,126 Total governmental activities program revenue $ 40,281,972 $ 37,336,328 $ 40,920,320 $ 39,880,477 $ 46,954,866 Business -type Activities: Charges for services: Transportation Development Act1 $ Community development commission - Kimball Towers 1,124,578 Morgan Towers 1,266,441 Operating grants and contributions - Capital grants and contributions $ $ 1,130,543 1,2 89,180 Total business -type activities program revenue $ 2,391,019 $ 2,419,723 Total primary government program revenue $ 42,672,991 $ 39,756,051 Net Revenues (Expenses): Governmental activities (32,664,864) (43,012,676) (5I,348,070) Business -type activities 117,039 111,595 167,243 Total Net Revenues (Expenses) $ (32,547,825) $ (42,901,081) $ (51,180,827) 1 National City Transportation Development Act operations discontinued during Fiscal Year 2007. 1,127,607 1,329,610 $ $ I,256,346 1,017,766 $ 2,457,217 $ 2,274,112 $ 43,377,537 $ 42,154,589 $ 46,954,866 (54,039,478) (52,431,173) 541,666 - $(53,497,812) $ (52,431,173) Source: City of National City Comprehensive Annual Financial Reports or financial statements 153 409 of 483 City of National City Changes in Net Position (Continued) Last Ten Fiscal Years (accrual basis of accounting) General Revenue and Other Changes in Net Position: Governmental Activities: Taxes: Property taxes Sales taxes.' Franchise taxes Motor vehicle license Transient occupancy taxes Utilities tax Investment earnings.' Other miscellaneous revenues Rent Transfers Gain (loss) on sale of assets Transfer to Successor Agency Special items Total governmental activities Business -type Activities: Investment earnings Other misc Rent Transfers Total business -type activities Total primary government Changes in Net Position: Governmental activities Business -type activities Total Primary Government Fiscal Year 2011 2012 2013 $ 14,184,279 $ 11,373,533 $ 4,724,959 21,731,925 22,864,669 23,757,635 1,949,759 1,852,996 1,602,891 5,219,884 4,962,804 838,255 887,820 5,154,530 815,136 374,153 297,882 1,873,896 365,734 23,811 - 868,535 151,879 $ 45,532,524 $ 42,263,515 $ 38,080,926 $ 3,192 $ 3,192 $ 3,685 14,776 $ 3,192 $ 3,192 $ 18,461 $ 45,535,716 $ 42,266,707 $ 38,099,387 4,454,763 5,129,424 6,545,839 (787,168) 156,127 65,502 $ 3,667,595 $ 5,285,551 $ 6,611,341 2014 $ 9,908,109 25,586,661 1,718,023 27,056 1,082,339 825,388 459,019 (268,224) 2015 $ 10,301,592 27,095,666 1,902,082 1,383,793 818,820 304,655 $ 39,338,371 $ 41,806,608 $ 2,520 15,353 $ 2,579 14,869 $ 17,873 $ 17,448 $ 39,356,244 $ 41,824,056 13,437,428 17,287, 593 (128,042) 49,220 $ 13,309,386 $ 17,336,813 City of National City implemented a one -cent district tax during fiscal year 2007, causing an increase in sales tax revenue and investment earnings. Source: City of National City Comprehensive Annual Financial Reports or financial statements 154 410 of 483 City of National City Changes in Net Position (Continued) Last Ten Fiscal Years (accrual basis of accounting) Fiscal Year 2016 2017 2018 2019 2020 General Revenue and Other Changes in Net Position: Governmental Activities: Taxes: Property taxes $ 10,293,634 $ 11,948,882 $ 12,721,058 $ 14,340,418 $ 15,975,053 Sales taxes.' 29,170,512 29,284,869 30,084,675 33,196,667 31,268,711 Franchise taxes 1,922,723 1,856,039 1,910,053 1,966,728 2,330,697 Motor vehicle license - - - - - Transient occupancy taxes 1,611,788 1,597,957 1,660,800 1,774,843 1,522,714 Utilities tax 867,488 886,455 711,635 708,451 678,663 Investmentearningst 553,184 361,077 836,038 2,297,242 2,943,647 Other miscellaneous revenues 1,864 - 21,049 45,017 65,010 Rent - Transfers Gain (loss) on sale of assets Transfer to Successor Agency (826,577) Special items 13,734,184 Total governmental activities $ 57,328,800 $ 45,935,279 $ 47,945,308 $ 54,329,366 $ 54,784,495 Business -type Activities: Investment earnings $ 3,678 $ 5,621 $ 9,390 $ 10,038 $ Other misc 14,023 15,464 14,743 11,378 Rent - - - Transfers Total business -type activities $ 17,701 $ 21,085 $ 24,133 $ 21,416 $ Total primary government $ 57,346,501 $ 45,956,364 $ 47,969,441 $ 54,350,782 $ 54,784,495 Changes in Net Position: Governmental activities 24,663,936 2,922,603 (3,402,762) 66,506,529 2,353,322 Business -type activities 134,740 132,320 191,376 (7,359,669) - Total Primary Government $ 24,798,676 $ 3,054,923 $ (3,211,386) $ 59,146,860 $ 2,353,322 1 City ofNational City implemented a one -cent district tax during fiscal year 2007, causing an increase in sales tax revenue and investment earnings. Source: City of National City Comprehensive Annual Financial Reports or financial statements 155 411 of 483 City of National City Fund Balances of Government Funds Last Ten Fiscal Years (modified accrual basis of accounting) General Fund: Nonspendable Restricted Committed Assigned Unassigned Total general fund All Other Governmental Funds: Nonspendable Restricted Committed Assigned Unassigned Total all other governmental funds Fiscal Year 2011 2012 2013 2014 2015 $ $ $ 10,162 $ 4,952,830 $ 4,963,9I6 - 707,262 611,780 590,998 1,671,257 1,671,257 9,085,066 9,085,066 9,085,066 4,829,800 5,536,697 6,787,396 15,042,191 16,065,736 7,059,792 10,708,984 6,995,075 7,797,176 10,266,365 $ 13,560,849 $ 17,916,938 $ 23,584,961 $ 37,489,043 $ 40,972,081 103,585,798 2,002,596 (538,052) $ 105,050,342 - 8,164,235 7,926,759 7,927,027 42,694,439 33,122,400 31,713,774 31,005,844 2,166,798 - 740,177 733,384 706,558 485,332 24,729 (8,165,223) (5,368,938) $ 45,346,569 $ 42,05I,541 $ 32,208,694 $ 34,270,491 Source: City of National City Comprehensive Annual Financial Reports or financial statements 156 412 of 483 City of National City Fund Balances of Government Funds (Continued) Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2016 2017 2018 2019 2020 General Fund: Nonspendable $ 10,766,098 $ 9,963,816 $ 9,966,729 $ 5,010,267 $ 3,926,499 Restricted 754,913 616,253 555,168 2,304,908 10,092,890 Committed 11,585,066 11,585,066 11,085,066 15,150,517 11,485,066 Assigned 14,792,381 14,325,683 15,772,642 12,865,120 7,129,273 Unassigned 12,166,732 11,903,272 12,731,293 13,673,543 16,294,668 Total general fund $ 50,065,190 $ 48,394,090 $ 50,110,898 $ 49,004,355 $ 48,928,396 All Other Governmental Funds: Nonspendable - 1,636,570 129,469 25,805 25,805 Restricted 36,333,305 32,015,860 30,928,607 97,534,456 98,847,618 Committed - - - - Assigned Unassigned (821,959) (985,588) (1,910,674) (21,761) (16,426) Total all other governmental funds $ 35,511,346 $ 32,666,842 $ 29,147,402 $ 97,538,500 $ 98,856,997 Source: City of National City Comprehensive Annual Financial Reports or financial statements 157 413 of 483 City of National City Changes in Fund Balances of Government Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Year 2011 2012 2013 2014 2015 Revenues: Taxes1 $ 46.981.938 $ 42,797.241 $ 38.837.279 $ 41.386,311 $ 43,573,589 Licenses and permits 772.326 837,532 1.225.571 1,099,929 1,567,617 Fines and forfeitures 1,574,031 1,873,1 19 1.044,422 1,111,961 885,722 lnterest1 and rents 971,728 720,301 - Use of money and property 768,612 1.122,149 1,073,543 Intergovernmental 17.498.972 19.427,220 15,803,886 23.571.850 26,791,254 Charges for services 9,161,970 8,482,536 10,080,029 9,531,741 10,024,879 Other revenues 2,166,456 2.025.862 757,913 1,651.370 4.387,660 Total revenues $ 79.127,421 $ 76,163,811 $ 68,517.712 $ 79,475,311 $ 88,304,264 Expenditures: Current General government $ 6.595,278 $ 5,650,734 $ 5.349.464 $ 5,062,227 $ 5,403,805 Public safety 27,631,707 28,458,759 28.156.246 27,687,841 29,100,717 Transportation 1.945,357 1,667,437 2,957.941 3,673,470 3,941,747 Community development 17,752,422 13,657,581 10,529,246 11,235,322 11,173.792 Health 6.842.236 7,015,478 8,559,588 6.994.103 7,179,865 Culture and leisure 5.127,204 5338,826 5.797,227 6,057,037 5,306,518 Capital outlay 6.468,842 2,839,897 3,749,471 20.361.948 17,176.753 Debt service: Principal 3,327,360 4.547,823 1,068,801 1,376.871 1,142,186 Interest and fiscal charges 2.456,640 4,560,865 547.580 477,061 427,209 Cost of issuance 439.442 - - Total expenditures $ 78,586.488 $ 73.537,400 $ 66.715.564 $ 82.925,880 $ 80,852,592 Excess (deficiency) of revenues over (under) expenditures 540,933 2,626,411 1,802.148 (3,450,569) 7,451,672 1 City of National City implemented a one cent district tax during Fiscal Year 2007, causing an increase- in sales tax revenue and investment earnings. Other Financing Sources (uses) Issuance of long-term debt $ 42,775,000 $ $ 4,885,000 $ $ 554,604 Premium on debt issuance - - 25,678 - Payment to bond escrow agent (3,115,000) - (4_760_000) - Original discount on issuance (1,056,085) (150.678) Proceeds from sale of property - 7,052.194 Proceeds from lease - Proceeds from sale of land - Gain on sale of land held for resale - - Loss on sale of land held for resale - Pass -through payments to other agencies - - - Transfers in 16,870.308 7,017,427 3.085,535 5,131,249 1,765,336 Transfers out (16,196,104) (6.738.538) (2,514,688) (4,671.639) (4,277,1.82) Transfers to Successor Agency - Total other financing sources (uses) $ 39.278,119 $ 278,889 $ 570,847 $ 7,51 1.804 $ (1,957.242) Extraordinary/Special items Net change in fund balances (59,950,984) $ 39,819.052 $ (57.045,684) $ 2,372,995 $ 4,061.235 $ 5,494,430 Debt services as a percentage of noncapital expenditures 8.02% 12.88% 2.57% 2.961'4 Source! City of National City Comprehensive Annual Financial Reports or financial statements 158 414 of 483 City of National City Changes in Fund Balances of Government Funds (Continued) Last Ten Fiscal Years (modified accrual basis of accounting) Revenues: Taxes.' Licenses and permits Fines and forfeitures Interest.' and rents Use of money and property Intergovernmental Charges for services Other revenues Total revenues Expenditures: Current: General government Public safety Transportation Community development Health Culture and leisure Capital outlay Debt service: Principal Interest and fiscal charges Cost of issuance Total expenditures Excess (deficiency) of revenues over (under) expenditures Fiscal Year 2016 2017 2018 2019 $ 45,474,959 1,122,139 646,370 1,417,606 21,381,584 10,734,789 3,925,718 $ 47,058,901 1,280,675 642,972 1,035,112 20,051,795 11,721,905 2,552,556 $ 84,703,165 $ 84,343,916 $ 6,986,812 31,785,904 4,546,976 11,752,502 7,587,801 6,239,067 16,737,745 1,150,824 364,723 $ 5,673,456 34,754,008 4,687,611 12,909,844 8,227,149 7,351,974 12,938,379 1,310,893 243,329 $ 87,152,354 $ 88,096,643 (2,449,189) $ 48,968,671 $ 53,534,414 1,879,379 1,527,378 663,205 3,006,250 1,393,733 3,125,731 22,671,850 20,790,012 11,010,813 10,630,010 2,675,725 1,045,184 $ 89,263,376 $ 93,658,979 $ 8,755,798 37,535,638 4,731,634 16,801,816 7,544,106 4,186,345 14,560,697 1,552,162 387,857 $ 10,353,580 37,352,792 5,068,343 13,557,554 8,158,082 7,066,530 9,059,110 1,060,732 385,960 2020 $ 53,675,932 2,730,712 3,008,937 4,220,708 22,987,280 12,927,658 2,241,059 $ 101,792,286 $ 10,775,011 39,306,907 4,746,321 14,195,343 8,215,602 7,025,166 13,561,929 1,077,616 419,868 $ 96,056,053 $ 92,062,683 $ 99,323,763 (3,752,727) (6,792,677) 1,596,296 2,468,523 .' City of National City implemented a one cent district tax during Fiscal Year 2007, causing an increase in sales tax revenue and investment earnings. Other Financing Sources (uses) Issuance of long-term debt Premium on debt issuance Payment to bond escrow agent Original discount on issuance Proceeds from sale of property Proceeds from lease Proceeds from sale of land Gain on sale of land held for resale Loss on sale of land held for resale Pass -through payments to other agencies Transfers in Transfers out Transfers to Successor Agency Total other financing sources (uses) Extraordinary/Special Items Net change in fund balances Debt services as a percentage of noncapital expenditures $ - $ 4,903,988 (3,078,442) (826,577) $ 998,969 11,784,182 - $ 5,523,602 58,474 65,966 (705,115) 2,932,166 (3,114,366) 6,913,968 (7,447,525) $ (762,875) $ 4,990,045 $ 73,514,649 (7,826,390) (589,700) (631,285) 2,045,691 (2,050,691) $ 65,688,259 $ (I,225,985) $ 10,333,962 $ (4,515,602) $ (1,802,632) $ 67,284,555 $ 1,242,538 2.15% 2.07% 2.38% 1.74% 1.75% Source: City of National City Comprehensive Annual Financial Reports or financial statements 159 415 of 483 City of National City Assessed Value and Actual Value of Taxable Property Last Ten Fiscal Years Category Secured: Residential Property Commercial Property Industrial Property Institutional Property Irrigated Property Recreational Property Unknown Vacant Land Dry Farm Total Secured Unsecured Cross Reference SBE Nonunitary Total Taxable Assessed Value Total Direct Tax Rate Fiscal Year 2011 2012 2013 2014 $ 1,438,117,757 886,630,566 282,442,202 55,348,512 26,677,054 96,674,219 224,466 $ 1,482,008,218 899,802,065 275,585,085 44,298,664 27,127,749 58,383,925 Note: Exempt values not included in totals. $ 1,503,553,951 915,142,395 370,755,962 45,384,698 $ 1,547,773,659 971,070,608 372,617,155 46,107,183 29,056,094 25,828,782 57,090,009 61,320,039 2015 $ 1,665,406,317 992,982,224 360,527,549 46,316,498 25,827,429 60,685,749 $ 2,786,114,776 $ 2,787,205,706 $ 2,920,983,109 $ 3,024,717,426 $ 3,151,745,766 $ 200,239,342 $ 201,267,744 $ 183,790,343 $ 224,847,953 $ 197,869,900 $ 5,195,618 $ 5,195,618 $ 5,195,618 $ 5,224,473 $ 5,224,473 $ 2,991,549,736 $ 2,993,669,068 $ 3,109,969,070 $ 3,254,789,852 $ 3,354,840,139 0.54335 0.54734 0.54683 0.24559 0.20747 Source: t1dL, San Diego County Assessor 1999/00- 2013/14 Combined Tax Rolls 160 416 of 483 City of National City Assessed Value and Actual Value of Taxable Property (Continued) Last Ten Fiscal Years Category Secured: Residential Property Commercial Property Industrial Property Institutional Property Irrigated Property Recreational Property Unknown Vacant Land Dry Farm Total Secured Unsecured Cross Reference SBE Nonunitary Total Taxable Assessed Value Total Direct Tax Rate Fiscal Year 2016 2017 2018 2019 2020 $ 1,717,835,128 1,026,863,991 345,186,211 47,648,063 24,799,504 66,017,188 $ 1,805,981,573 1,082,223,930 351,325,363 48,280,512 28,998,288 66,452,827 Note: Exempt values not included in totals. $ 2,005,909,205 1,141,618,921 366,288,263 50,276,110 30,262,982 69,545,186 $ 2,124,432,627 1,177,390,190 370,233,052 50,172,874 30,008,253 72,360,079 $ 2,247,520,548 1,235,674,912 293,358,933 51,166,295 6,115,328 74,595,548 $ 3,228,350,085 $ 3,383,262,493 $ 3,663,900,667 $ 3,824,597,075 $ 3,908,431,564 $ 208,192,396 $ 200,687,180 $ 209,840,073 $ 228,175,189 $ 233,956,577 $ 4,088,740 $ 4,088,640 $ 4,088,640 $ 4,429,496 $ 4,429,496 $ 3,440,631,221 $ 3,588,038,313 $ 3,877,829,380 $ 4,057,201,760 $ 4,146,817,637 0.20813 0.19685 0.19587 0.19462 0.19792 Source: I-IdL, San Diego County Assessor 1999/00- 2013/14 Combined Tax Roils 161 417 of 483 City of National City 2019/20 Use Category Summary (Percentages) Residential, 52.9 ASSESSED VALUE Others, 7.7 Unsecured, 5.3 • Others • Unsecured • Industrial • Commercial • Residential Unsecured, 5.5 5BE Nonunitary, 0.1 Residential, 52.5 _.------- NET TAXABLE VALUE Vacant, 1.7 Industrial, 6.5 Commercial, 27.6 Commercial, 28.9 Cross Reference, 3.1 Industrial, 6.9 Institutional, 1.2 Recreational, 0.1 • Commercial • Cross Reference • Industrial • Institutional • Recreational • Residential • SBE Nonunitary • Unsecured • Vacant Source: San Diego County Assessor 2013/14 Combined Tax Rolls 162 418 of 483 City of National City Property Tax Dollar Breakdown (Percentages) Property Tax Breakdown Source: HdL, San Diego County Assessor 2019120 Annual Tax Increment Tables ■ General Elementary National ■ National City General Fund ■ High Sweetwater Union ■ County General ■ Educational Revenue Augmentation Fund ■ National City General Fund ■ Other 163 419 of 483 City of National City 2019/20 Roll Summary Taxable Property Values Parcels TRAs Values Secured Nonunitary Utilities Unsecured 9,713 7 1,539 39 3 19 Land $ 1,846,855,553 $ 4,429,496 $ - Improvements 2,432,072,670 86,143,314 Personal Property 2,485,493 - 153,643,857 Fixtures - - Aircraft Total Value $ 4,281,413,716 $ 4,429,496 $ 239,787,171 Exemptions Real Estate Personal Property Fixture Aircraft Homeowners Total Exemptions $ 240,790,964 $ 29,099,221 1,056,331 4,774,263 161,000 $ 269,890,185 $ $ 5,991,594 Total Net Value $ 4,011,523,531 $ 4,429,496 $ 233,795,577 Combined Values Total Total Values $ 4,525,630,383 Total Exemptions $ 275,881,779 Net Total Values $ 4,249,748,604 Net Aircraft Values $ - Notes: Homeowner Exemptions are not included in Total Exemptions. Totals do not Include Aircraft Values or Exemptions. Source: San Diego County Assessor 2013/14 Combined Tax Rolls 164 420 of 483 City of National City Net Taxable Assessed Value History 2010/11 - 2019/20 Year Secured Unsecured 2010/11 $ 2,786,114,776 $ 200,239,342 $ 2011/12 $ 2,787,205,706 $ 201,267,744 $ 2012/13 $ 2,920,983,109 $ 183,790,343 $ 2013/14 $ 3,024,717,426 $ 224,847,953 $ 2014/15 $ 3,151,745,766 $ 197,869,900 $ 2015/16 $ 3,228,350,085 $ 208,192,396 $ 2016/17 $ 3,383,262.493 $ 200,687,180 $ 2017/18 $ 3,663,900.667 $ 209,840,073 $ 2018/19 $ 3,824,597,075 $ 228,175,189 $ 2019/20 $ 4,040,622,752 $ 233,956,577 $ $5, 000,000,000 $4,000,000,000 $3,000,000,000 $2,000,000,000 $1,000,000,000 $- SBE Nonunitary 5,195,618 5,195,618 5,195,618 5,224,473 5,224,473 4,088,740 4,088,640 4,088,640 4,429,496 4.429,496 Net Taxable Assessed Value History Secured ■ Unsecured SBE Nonunitary 1 1 1 1 1 Net Total AV 2,991,549,736 2,993,669,068 3,109,969,070 3,254,789,852 3,354,840,139 3,440,631,221 3,588,038,313 3,877,829,380 4,057,201,760 4,279,008.825 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 % Change -1.29% 0.07% 3.88% 4.66% 3.07% 2.56%. 4.28% 8.08% 4.63% 5.47% Source: San Diego County Assessor 2004/05-2013/14 Combined Tax Rolls 165 421 of 483 City of National City Taxable Sales by Category Last Ten Calendar Years (in thousands of dollars) Calendar Year 2010 2011 2012 2013 2014 Apparel Stores $ 119,812 $ 128,874 $ 133,160 $ 133,242 $ 134,000 General Merchandise 145,754 156,062 163,078 164,508 170,253 Food Stores 19,114 20,570 22,033 21,288 21,765 Eating and Drinking Places 122,452 128,360 133,597 139,756 149,098 Building Materials 28,280 28,041 29,483 31,812 37,814 Auto Dealers and Supplies 369,712 414,794 505,241 547,221 579,153 Service Stations 78,475 87,217 85,842 77,680 79,502 Other Retail Stores 125,320 134,698 142,972 152,666 165,052 All Other Outlets 245,424 240,884 255,744 289,955 299,613 Total $ 1,254,343 $ 1,339,500 $ 1,471,150 $ 1,558,128 $ 1,636,250 Notes: Due to confidentiality requirements, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. Data for 2020 not available as of the date of issuance of this report. Source: State of California Board of Equalization and The HdL Companies 166 422 of 483 City of National City Taxable Sales by Category (Continued) Last Ten Calendar Years (in thousands of dollars) Calendar Year 2015 2016 2017 2018 2019 Apparel Stores $ 134,821 $ 143,054 $ 146,205 $ 150,030 $ 149,017 General Merchandise 176,099 176,345 173,652 178,412 182,062 Food Stores 20,902 20,894 20,619 20,914 21,129 Eating and Drinking Places 163,289 175,979 181,540 198,204 211,898 Building Materials 55,846 67,098 90,491 98,577 78,449 Auto Dealers and Supplies 626,680 635,242 608,019 602,370 629,203 Service Stations 71,620 65,266 69,443 84,634 100,148 Other Retail Stores 172,337 175,744 176,398 172,842 164,994 All Other Outlets 321,120 349,438 360,770 368,099 424,315 Total $ 1,742,714 $ 1,809,060 S 1,827,137 $ 1,874,082 $ 1,961,215 Notes: Due to confidentiality requirements, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. Data for 2020 not available as of the date of issuance of this report. Source: State of California Board of Equalization and The HdL Companies 167 423 of 483 City of National City Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Year 2011 2012 2013 2014 2015 Current Year Tax Levy $ 3,118,154 $ 3,207,237 $ 3,348,632 $ 3,099,715 $ 3,240,544 Current Tax Collections 3,079,633 3,160,964 3,330,941 3,087,464 3,227,793 Percent of Levy Collected 98.76% 98.56% 99.47% 99.60% 99.61% Delinquent Tax Receivable 17,417 19,334 19,089 19,203 19,758 Delinquent Tax Collections 2,717 1,995 1,781 1,542 1,312 Total Tax Collections $ 3,082,350 $ 3,162,959 $ 3,332,721 $ 3,089,006 $ 3,229,105 Percent of Total Tax Collections To Tax Levy Outstanding Delinquent Taxes Percent of Delinquent Taxes To Tax Levy 98.85% 98.62% 99.52% 99.65% 99.65% $ 53,222 $ 63,612 $ 34,999 $ 29,912 $ 31,197 1.71% 1.98% 1.05% 0.96% 0.96% Source: San Diego County Property Tax Services 168 424 of 483 City of National City Property Tax Levies and Collections (Continued) Last Ten Fiscal Years Fiscal Year 2016 2017 2018 2019 2020 Current Year Tax Levy $ 3,205,191 $ 3,335,753 $ 3,619,238 $ 3,687,359 $ 3,896,676 Current Tax Collections 3,195,983 3,333,476 3,601,115 3,667,444 3,890,504 Percent of Levy Collected 99.71% 99.93% 99.50% 99.46% 99.84% Delinquent Tax Receivable 17,764 16,226 10,737 16,840 16,741 Delinquent Tax Collections 1,564 1,465 2,008 1,948 1,868 Total Tax Collections $ 3,197,547 $ 3,334,941 $ 3,603,123 $ 3,669,393 $ 3,892,372 Percent of Total Tax Collections To Tax Levy Outstanding Delinquent Taxes Percent of Delinquent Taxes To Tax Levy 99.76% 99.98% 99.55% 99.51% 99.89% $ 25,408 $ 17,038 $ 26,852 $ 34,807 $ 21,044 0.79% 0.51% 0.74% 0.94% 0.54% Source: San Diego County Property Tax Services 169 425 of 483 City of National City Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (Rate Per $100 of Taxable Value) Agency Fiscal Year 2011 2012 2013 2014 2015 Basic Levy' 1.00000 1.00000 1.00000 Chula Vista Elementary 0.02611 0.02594 0.02526 Gen Bond National City -Prop N 1 1/04/14 Ser 2014A 0.00000 0.00000 0.00000 Gen Bond National City -Prop N 1 1 /04/14 Ser 2014B 0.00000 0.00000 0.00000 Metropolitan Water District 0.00370 0.00370 0.00350 National City Gen. Obligation Bonds 2002 Series A 0.01420 0.01370 0.01320 San Diego Community College Bond 0.02494 0.03740 0.03636 Southwestern Community College 0.03635 0.03308 0.03753 Sweetwater High Bond 0.05517 0.06079 0.05862 Total Direct & Overlappingz Tax Rates 1.16047 1.17461 1.17447 1.00000 0.04631 0.00000 0.00000 0.00350 0.01190 0.04760 0.03675 0.05823 1.00000 0.04753 0.00000 0.00000 0.00350 0.00960 0.04381 0.03582 0.05407 1.20429 1.1.9433 City's Share of 1% Levy Per Prop 13' 0.17720 0.17720 0.17720 0.17720 0.17720 General Obligation Debt Rate 0.01420 0.01370 0.01320 0.01190 0.00960 Redevelopment Agency Rate 1.00370 1.00370 0.00000 0.00000 0.00000 Total Direct Rates 0.54335 0,54734 0.54683 0.24559 0.20747 Li 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 2 Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all City property owners. City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where knowns. 4 Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The Approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. s Total Direct Rate is the weighted average of all individual direct rates applied by the City/agency preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13, For the purpose of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue. Source: HdL, San Diego County Assessor 2004/05-2013/14 Tax Rate Tables 170 426 of 483 City of National City Direct and Overlapping Property Tax Rates (Continued) Last Ten Fiscal Years (Rate Per $100 of Taxable Value) Fiscal Year Agency 2016 2017 2018 2019 2020 Basic Levy' Chula Vista Elementary Gen Bond National City -Prop N 11/04/14 Set. 2014A Gen Bond National City -Prop N 11/04/14 Ser 2014B Metropolitan Water District National City Gen. Obligation Bonds 2002 Series A San Diego Community College Bond Southwestern Community College Sweetwater High Bond Total Direct & Overlapping2 Tax Rates 1.00000 1.00000 1.00000 1.00000 1, 00000 0.0430I 0.04323 0,03594 0.03917 0.03743 0.03055 0.02867 0.02629 0.01449 0.00000 0,00000 0.00000 0.00000 0.01022 0.00000 0.00350 0,00350 0.00350 0.00350 0.00350 0.00920 0.00880 0.00790 0,00730 0.03129 0.03939 0.03912 0.03447 0,03941 0.03801 0.03961 0.03856 0.04981 0.04671 0.04482 0.05169 0.05162 0.05156 0.05283 0.05159 1.21695 1.21350 1.20947 1.21363 1.20664 City's Share of 1% Levy Per Prop 133 0.17720 0.17720 0.17720 0.17720 0.17720 General Obligation Debt Rate 0.00920 0.00880 0.00880 0.00730 0.00670 Redevelopment Agency Rate4 0.00000 0.00000 0.00000 0.00000 0.00000 Total Direct Rates 0.20813 0.19685 0.19685 0.19462 0.19792 ' In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 2 Overlapping rates are those of local and county governments that apply to property owners within the City. Not ail overlapping rates apply to all City property owners. 3 City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. The ERAF portion of the City's Levy has been subtracted where knowns. Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The Approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. s Total Direct Rate is the weighted average of all individual direct rates applied by the City/agency preparing the statistical section infonnation and excludes revenues derived from aircraft. Beginning in 2013/14 the Total Direct Rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012/13. For the purpose of this report, residual revenue is assumed to be distributed to the City/Agency in the same proportions as general fund revenue. Source: HdL, San Diego County Assessor 2004/05-20I3/14 Tax Rate Tables 171 427 of 483 City of National City Principal Property Tax Payers Current Year and Nine Years Ago Taxpayer (Parcels) Plaza Bonita LLC (11) Pasha Automotive Services (5) P V H R LLC (3) H G Fenton Property Company (32) Costco Wholesale Corporation (1) National City Investment LP (4) R O I C California LLC (7) M G P X I U S Properties LLC (22) M R T of National City California S N F (2) MPT of Paradise Valley L P (30) Centermark Properties (I) Plaza Bonita II LP (10) MPT of Paradise Valley L P (27) PVHR LLC (3) Pasha Automotive Services (8) Costco Wholesale (1) Pacific Castle Bay Plaza (3) Sweetwater Associates LP (22) G W Williams Company (2) Dexter Street LP (1) Top Ten Total City Total e Value includes outer TRA's 2019/20 Taxable Percentage of Assessed Value Net (Secured and Assessed Unsecured) Rank Value $ 272,841,155 1 6.38% 79,314,317 2 1.85% 65,512,758 3 1.53% 54,779,580 4 1.28% 47,165,953 5 1.10% 44,477,100 6 1.04% 43,018,387 7 1.01% 37,350,360 8 0.87% 35,804,484 9 0.84% 33,948,384 10 0.79% $ 714,212,478 $ 2,791,310,394 * 2010/11 Taxable Assessed Value (Secured and Unsecured) Percentage of - Net Assessed Rank Value $ 128,568,037 1 108,253,853 2 40,210,591 3 35,462,041 4 35,196,632 5 33,077,148 6 26,467,321 7 22,836,038 8 22,662,929 9 22,150,000 10 16.69% $ 474,884,590 $ 2,991,549,736 * 4.30% 3.62% 1.34% 1.19% 1.18% 1.11% 0.88% 0.76% 0.76% 0.74% 15.88% Source: HdL, San Diego County Assessor 2004/05- 2013/2014 Combined Tax Rolls and the SHE Non Unitary Tax Rolls 172 428 of 483 City of National City Sales Value History Single Family Residential Full Value Sales (1/1/2018-8/31/2020) Year Full Value Sales Average Price Median Price Median % Change 2018 227 $ 417.573 $ 2019 226 $ 426,588 $ 2020 130 $ 434,273 $ 420,000 439,500 457,000 4.64 3.98 Sales Price $460, 000 $450, 000 $440, 000 $430,000 $420,000 $410, 000 $400, 000 $390, 000 2018 Sales Value History 2019 Calendar Year 2020 Average Price Median Price Source: San Diego County Recorder 173 429 of 483 cALIF0Fol TIONALCITY TCORPORATEP This page intentionally left blank. 17-1 430 of 483 City of National City Top 25 Sales Tax Producers For 2019-20 & 2010-11 2019-20 2010-11 Business Name Business Category Business Name Business Category ABC Supply Co Building Materials Arco Service Stations Arco AM PM Service Stations Arco AM PM Service Stations Ball Mitsubishi New Motor Vehicle Dealers Ball Mitsubishi New Motor Vehicle Dealers Frank Hyundai New Motor Vehicle Dealers Forever 21 Women's Apparel Frank Subaru New Motor Vehicle Dealers Frank Auto Pros New Motor Vehicle Dealers Frank Toyota New Motor Vehicle Dealers Hason Aggregates Contractors Hd Supply White Cap Building Materials ,IC Penny Department Stores In N Out Burger Quick -Service Restaurant Macys Department Stores JC Penny Department Stores McCune Motors New Motor Vehicle Dealers Macys Department Stores Mossy Nissan New Motor Vehicle Dealers Mossy Nissan New Motor Vehicle Dealers National City Auto Center Used Automotive Dealers National City Gas & Carwash Service Stations One Source Distributors Electrical Equipment Nordstrom Rack Department Stores Perry Ford New Motor Vehicle Dealers Perry Chrysler Dodge Jeep Ram New Motor Vehicle Dealers Probuild Company Building Materials Perry Ford New Motor Vehicle Dealers Ron Baker Chevrolet New Motor Vehicle Dealers Probuild Company Building Materials Ross Family Apparel Ron Baker Chevrolet New Motor Vehicle Dealers Shell Service Stations Ross Family Apparel South Bay Volkswagen New Motor Vehicle Dealers Shell Service Stations Target Discount Dept Stores South Bay Volkswagen New Motor Vehicle Dealers Thrifty Gas Service Stations South County Buick GMC New Motor Vehicle Dealers Toys R Uset Specially Stores Target Discount Dept Stores Univar Solutions USA Drugs/Chemicals Wa]mart Supercenter Discount Dept Stores Walmart Supercenter Discount Dept Stores Westcott Mazda New Motor Vehicles Dealers Westcott Mazda New Motor Vehicles Dealers Wcstair Gases & Equipment Drugs/Chemicals Westair Gases & Equipment Drugs/Chemicals Percent of 2019-20 total paid by top 25 accounts = 50.05 Percent of 2010- 1 1 total paid by top 25 accounts = 51.52 * Firms listed alphabetically * Firms listed alphabetically Source: State Board of Equalization, California Department of Taxes and Fees Source: State Board of Equalization, California Department of Taxes and Fees Administration, State Controller's Office, The HdL Companies Administration, State Controller's Office, The I-IdL Companies Source: Ilinderllter, de Llamas Associates, State Board of Equalization 175 431 of 483 City of National City Ratios of Outstanding Debt by Type Last Ten Fiscal Years Fiscal Year 2011 2012 2013 2014 2015 Governmental Activities: NC.TPFA Lease Revenue Refunding Bond $ 3,115,000 $ 2,715,000 $ 2,300,000 $ 1,870,000 $ 1,425,000 Tax Allocation Bonds 74,590,000 71,115,000 General Obligation Bonds 5,120,000 4,945,000 4,846,073 4,613,668 4,371,263 2017 Clean Energy Bonds 2017 Lease Revenue Bonds Notes Payable I•IUD 108 Bond2003 A 5,505,000 5,245,000 4,965,000 4,450,000 4,140,000 Total Bonded Debt $ 88,330,000 $ 84,020,000 $ 12,1 1 1,073 $ 10,933,668 $ 9,936,263 Per Capita $ 872 $ 1,491 $ 1,383 $ 198 $ 176 Percent of Taxable Assessed Values 2.95% 2.70% 0,37% 0.33% 0.29% Other Governmental Activities Debt Capital Lease Payable 2,416,722 2,147,477 2,147,477 1,571,831 1,948,686 Business -Type Activities: Notes Payable -Deed of Trust 2,481,662 2,853,463 2,853,463 1,576,533 1,311,137 Total Primary Government $ 93,228,384 $ 89,020,940 $ 17,112,013 $ 14,082,032 $ 13,196,086 Percent of Personal Income 9.49% 9.11% 1.68% 1.34% 1.35% Per Capita $ 1,570 $ 1,503 $ 282 $ 230 $ 223 In 2013, the Tax Allocation Bonds becatne a Fiduciary responsibility Source: City of National City financial statements / notes to the financial statements 176 432 of 483 City of National City Ratios of Outstanding Debt by Type (Continued) Last Ten Fiscal Years Fiscal Year 2016 2017 2018 2019 2020 Governmental Activities: NCJPFA Lease Revenue Refunding Bond $ 965,000 $ 490,000 $ $ $ Tax Allocation Bonds 2,175,000 General Obligation Bonds 4,123,858 3,917,653 3,635,000 3,360,000 3,080,000 2017 Clean Energy Bonds 1,800,000 1,800,000 1,800,000 2017 Lease Revenue Bonds - 3,530,497 3,407,479 3,273,024 Notes Payable 1,158,837 1,043,788 925,530 803,972 HUD 108 Bond 2003 A 3,805,000 3,440,000 3,050,000 2,630,000 Total Bonded Debt $ 8,893,858 $ 9,006,490 $ 13,059,285 $ 12,123,009 $ 11,131,996 Per Capita $ 146 $ 143 $ 126 $ 193 $ 179 Percent of Taxable Assessed Values 0.25% 0.23% 0.32% 0.28% 0.22% Other Governmental Activities Debt Capital Lease Payable 1,723,764 1,494,160 1,264,425 1,001,185 768,283 Business -Type Activities: Notes Payable -Deed of Trust 1,027,967 725,833 403,464 Total Primaty Government $ 11,645,589 $ 11,226,483 $ 14,727,174 $ 13,124,194 $ 11,900,279 Percent of Personal Income 1,01% 0.87% 1.27% 1.06% 0.96% Per Capita $ 187 $ 181 $ 220 $ 196 $ 179 In 2013, the Tax Allocation Bonds became a Fiduciary responsibility Source: City of National City financial statements / notes to the financial statements 177 433 of 483 8LI jzwjq ,rfai a8m1 spa City of National City Direct and Overlapping Debt As of June 30, 2020 2019-2020 Assessed Valuation: $4,331,128,916 DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: Metropolitan Water District San Diego Community College District Southwestern Community College District Chula Vista City School District Chula Vista City School District School Facilities Improvement District No. 1 National School District Sweetwater Union High School District Sweetwater Union High School District Community Facilities Districts City Overlapping Tax and Assessment Debt Subtotal City of National City City Tax and Assessment Debt Subtotal TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT DIRECT AND OVERLAPPING GENERAL FUND DEBT: San Diego County General Fund Obligations San Diego County Pension Obligation Bonds San Diego County Superintendent of Schools Obligations Southwestern Community College District General Fund Obligations Sweetwater Union Iligh School District Certificates of Participation Chula Vista City School District Certificates of Participation City of National City General Fund Obligations TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT Overlapping Tax Increment Debt (Successor Agency) COMBINED TOTAL DEBT Total Direct Debt Total Overlapping Debt Combined Total Debt2 Ratios to 2019-20 Assessed Valuation: Direct Debt ($3,080,000) Total Direct and Overlapping Tax and Assessment Debt Total Direct Debt ($8,153,024) Combined Total Debt Ratios to Redevelopment Successor Agency Incremental Valuation (.$2.154,500,478): Total Overlapping Tax Increment Debt 0.07% 2.20% 0.19% 3,55% 1.96% Total Debt 6/30/2020 $ 37,300,000 1,321,653,309 415,123,676 95,458,285 79,580,000 25,330,000 395,759,333 6,037,374 2,376,241,977 3,080,000 3,080,000 $ 2,379,321,977 $ 231,350,000 456,040,000 9,350,000 595,000 38,060,000 152,895,000 5,073,024 $ 893,363,024 $ 42,264,000 $ 3,272,685,001 City's Share of % Applicable' 6/3012019 0.140% 0.002% 7.226% 1.392% 2.467% 93.638% 8.612% 4.035-24.174 100% 0.772% 0.772% 0.772% 7.I79% 8.571% 1.421% 100.000% $ 52,220 26,433 29,996,837 1,328,779 1,963,239 23,718,505 34,082,794 1,140,099 92,308,906 3,080,000 3,080,000 $ 95,388,906 $ 1,802,217 3,552,552 72,837 42,995 3,277,727 2,128,298 5,073,024 $ 15,949,650 100% $ 42,264,000 $ 111,338,556 $ 8,153,024 145,449,532 $ 153,602,556 The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is whing the boundaries of the city divided by the district's total taxable assessed value. = Excludes tax and revenue anticipation notes; enterprise revenue, mortgage revenue, and tax allocation bonds; and non -bonded capital lease obligations. Source: MuniServices, LLC Source: California Municipal Statistics, Inc. 179 435 of 483 City of National City Legal Debt Margin Information Last Ten Fiscal Years Assessed Valuation Conversion Percentage Adjusted Assessed Valuation Debt Limit Percentage Debt Limit Total Debt (due mono than one year) Less: Non Bonded Debt Claims Payable Compensated Absences Capitalized Lease Obligation Notes Payable Total Applicable to Limitation Legal Debt Margin Total debt applicable to the limit as a percentage of debt limit Fiscal Year 2011 2012 2013 2014 2015 $ 2,993,669,068 $ 3,109,969,070 $ 3,254,789,852 $ 3,354,840,139 $ 3,354,840,139 25% 25% 25% 25% 25% $ 748,417,267 $ 777,492,268 $ 813,697,463 $ 838,710,035 $ 838,710,035 15% $ 112,262,590 $ 93,559,890 (4,535,629) (803,341) (2,037,295) (2,058,393) 15% $ 116,623,840 $ $ 23,783,337 (4,701,604) (3,044,777) (2,059,274) (1,825,270) 15% 122,054,619 $ $ 21,416,534 (4,604,010) (948,661) (1,571,831) (1,576,533) $ 84,125,232 $ 28,137,358 75% 15% 15% 125,806,505 $ 125,806,505 $ 20,857,367 $ 20,579,839 (5,466,746) (5,580,594) (1,421,472) (1,632,485) (1,362,172) (1,723,765) 1,311,137) (1,027,967) $ 12,152,412 $ 12,715,499 $ 11,295,840 $ 10,615,028 $ 104,471,428 $ 109,339,120 $ 114,510,665 $ 115,191,477 10% 10% 9% 8% Source: City of National City financial statements / notes to the financial statements 180 436 of 483 City of National City Legal Debt Margin Information (Continued) Last Ten Fiscal Years Assessed Valuation Conversion Percentage Adjusted Assessed Valuation Debt Limit Percentage Debt Limit Total Debt (due more than one year) Less: Non Bonded Debt Claims Payable Compensated Absences Capitalized Lease Obligation Notes Payable Total Applicable to Limitation Legal Debt Margin Total debt applicable to the limit as a percentage of debt limit Fiscal Year 2016 $ 3,588,038,313 25% $ 897,009,578 15% 2017 2018 2019 2020 $ 3,877,829,380 25% $ 969,457,345 $ 134,551,437 $ 15% $ 4,057,201,760 $ 4,146,817,637 25% 25% $ 1,014,300,440 $ 1,036,704,409 15% 145,418,602 $ 152,145,066 $ $ 19,496,761 $ 19,090,044 (6,112,318) (1,821,032) (1,494,160) (725,833) (6,416,518) (2,023,755) (1,249,932) (403,465) $ 22,603,785 (7,089,594) (1,372,764) (1,001,185) $ 22,569,433 $ 4,523,039,978 25% $ 1,130,759,995 15% 15% 155,505,661 $ 169,613,999 $ 26,589,172 (8,262,594) (11,356,000) (1,622,476) (3,755,267) (768,962) (768,283) $ 9,343,418 $ 8,996,374 $ 13,140,242 $ 11,915,401 $ 10,709,622 $ 125,208,019 $ 136,422,228 $ 139,004,824 $ 143,590,260 $ 158,904,377 7% 6% 9% 8% 6% Source: City of National City financial statements / notes to the financial statements 181 437 of 483 City of National City Pledged Revenue Coverage Last Ten Fiscal Years Fiscal Year 2011 2012 2013 2014 2015 Revenue Property Tax Gross Incremental Revenue $ 11,070,963 $ 6,054,668 $ 11,505,010 $ 13,608,368 $ 12,705,481 Debt Service Requirements Principal $ 2,525,000 $ 3,955,000 $ 4,120,000 $ 4,290,000 $ 5,230,000 Interest and Fiscal Charges 1,706,646 3,978,074 3,797,907 3,589,747 3,484,532 Pass -through Payments 2,613,680 - - - - $ 6,845,326 $ 7,933,074 $ 7,917,907 $ 7,879,747 $ 8,714,532 Debt Coverage 1.62 0.76 1.45 1.73 1.46 Source: City of National City Comprehensive Annual Financial Reports or financial statements 182 438 of 483 City of National City Pledged Revenue Coverage (Continued) Last Ten Fiscal Years Fiscal Year 2016 2017 2018 2019 2020 Revenue Property Tax Gross Incremental Revenue $ 11,558,679 $ 7,740,998 $ 8,921,732 $ 5,185,031 $ 1,204,954 Debt Service Requirements Principal $ 2,070,000 $ 2,220,000 $ 3,163,000 $ 3,1I3,000 $ 3,194,000 Interest and Fiscal Charges 3,078,878 2,980,532 1,166,000 1,088,084 1,009,785 Pass -through Payments - - - - $ 5,148,878 $ 5,200,532 $ 4,329,000 $ 4,201,084 $ 4,203,785 Debt Coverage 2.24 1,49 2.06 I.23 0.29 Source: City of National City Comprehensive Annual Financial Reports or financial statements 183 439 of 483 C AL1 FOFANI -• vti TIONAL Car This page intentionally left blank. 1 84 440 of 483 City of National City Demographic and Economic Statistics Last Ten Fiscal Years Educational Attainment Pet Change % High Pet of SD from Avg. School % Bachelor's Personal Per Capita Total County Previous Median Household Graduate Degree or Unemployment Income Personal Year Population Population Year Age Size (25+) Higher (25%) Rate (000s)L Income' 2011 57,799 1.8% 3.7% 30.7 3.81 62.9% II.8% 19.9% $851,321 $14,729 2012 58,967 1.9% 2.0% 31.5 3.44 65.1% 12.6% 18,9% $933,389 $15,829 2013 58,838 1.9% -0.2% 31.7 3.40 66.8% 13,1% 13.6% $963,708 $16,379 2014 59,381 1.9% 0.5% 32.0 3.41 67.9% 12.7% 11.9% $982,043 $16,538 2015 59,235 1.8% -0.2% 31.5 3,41 69.B% 12.5% 8.1% $977,614 $16,504 2016 60,768 1.8% 2.6% 31.9 3.40 70.8% 12.7% 6.6% $1,020,729 $16,797 2017 61,210 1.8% 0.7% 32.2 3.40 72.3% 12.9% 5.9% $1,048,669 $17,I32 2018 62,257 1.9% 1.7% 32.5 3.40 72.4% 14.2% 4.1% $1,078,906 $17,329 2019 62,307 1.9% 0.1% 32.5 3.39 73.5% 14.6% 4.4% $1,155,824 $18,550 2020 62,099 1.9% -0.3% 33.6 3.33 74.2% 14,9% 4.1% $1,291,429 $20,796 NA: Not available. Dollar values are inflation -adjusted to 2009 185 441 of 483 City of National City Full -Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years Fiscal Year 2011 2012 2013 2014 2015 Function/Program General Government City Clerk 3.16 3,00 3.00 3.00 3,00 City Manager 9.50 9.00 7.05 8.00 8.00 Risk Management 2,00 2.00 1.00 1,00 1.00 Management Information Systems 4.00 4.00 3.00 3.00 3.50 Finance 16.55 16.75 14.48 14,48 14.77 Purchasing 2.48 2.48 2.48 2.48 .1.48 City Attorney 3.50 3.50 3.00 3.50 4.00 I-Iuman Resources 5.50 5.50 3.00 3.00 3.00 Community Development' - - 19.60 19.34 15.01 Planning 5.17 4.83 3.00 3.00 3.00 Building 4,33 4.33 3.00 4.00 4.00 Engineering 14.70 14.04 9.00 10.00 11.09 Redevelopment' 5.70 3.20 3.20 3.20 0.00 Advanced Planning / Economic Development' 2.75 - - - - Housing & Grants1'4 18.30 17.05 14.50 14.00 15.00 Neighborhood Services' 11.00 9.50 10.00 10.00 10.00 Public Works2 36.30 36.96 41.00 42.00 45.00 Community Services2 22,50 33.69 28.35 19.35 15.01 Nutrition Center 11.25 11.25 6.75 10.00 10.00 Library 60.07 59.31 56.47 56.30 20.35 Public Safety Police 134.36 135.38 124.38 125.38 129.50 Fire 48.25 48.25 42.00 43.00 43.00 Transit3 - - Prior to Fiscal Year 2007 Redevelopment, Advanced Planning / Economic Development, Housing & Grants, and Neighborhood Services were budgeted through the Community Developtent Commission. 2 Parks Division is no longer included under Community Services Department. It became a division of Public Works during Fiscal Year 2005 3 National City Transit is no longer managed by the City and is now operated by Metropolitan Transit System (MIS) 4Housing & Grants was changed to Housing & Economic Development in 2018 Source: City of National City Annual Adopted Budgets 186 442 of 483 City of National City Full -Time Equivalent City Government Employees by Function/Program (Continued) Last Ten Fiscal Years Fiscal Year 2016 2017 2018 2019 2020 Function/Program General Government City Clerk 3.00 3.00 3.00 3.00 3.00 City Manager 8.00 8.00 7.00 7.00 7.00 Risk Management 1.00 1.00 1,00 1.00 1.00 Management Information Systems 4.00 4.00 4.00 4,00 4.00 Finance 15.77 14.29 14.29 14,29 14.29 Purchasing 1.48 1.48 1,48 1.48 1.00 City Attorney 3.50 4.00 4,00 5.00 5.00 Human Resources 5.00 5.00 4.00 3.00 4.00 Community Development) - - - - - Planning 4.00 4,00 5.00 5.00 5.00 Building 5.00 5.00 5.00 4.00 4.00 Engineering 13.00 13.00 13.00 13.00 10.60 Redevelopment' 0.00 0.00 0.00 0.00 0.00 Advanced Planning / Economic Development' - - - - - Housing & Economic Development./ 15.00 16.00 15.00 15.00 15.00 Neighborhood Services"4 11.00 11.00 11.00 11.00 12.00 Public Works2 45.00 46.50 46.50 46.50 49.90 Community Services2 17.98 18.98 18.98 18.98 17.00 Nutrition Center 10.00 10.00 9.00 9.00 9.00 Library 21.35 21.85 21.85 21.85 22.85 Public Safety Police 129.50 126.98 126.98 128.98 128.98 Fire 47.00 47.00 47.00 47.00 51.00 Transit3 - - 1 Prior to Fiscal Year 2007 Redevelopment, Advanced Planning / Economic Development, Housing & Grants, and Neighborhood Services were budgeted through the Community Development Commission. 2 Parks Division is no longer included under Community Services Department. It became a division of Public Works during Fiscal Year 2005 3 National City Transit is no longer managed by the City and is now operated by Metropolitan Transit System (MTS) 4Housing & Grants was changed to housing & Economic Development in 2018 Source: City of National City Annual Adopted Budgets 187 443 of 483 City of National City Operating Indicators by Function/Program Last Ten Fiscal Years Fiscal Year 2011 2012 2013 2014 2015 Function/Program Police Physical Arrests 3,008 3,082 3,861 3,167 3,484 Parking Violations 12,157 10,406 9,704 11,283 7,434 Traffic Violations 2,325 3,384 3,811 2,158 1,801 Fire Emergency Responses 6,008 7,240 6,974 6,264 7,815 Fires Extinguished 79 136 155 149 121 Inspections 1,909 3,505 1,591 1,583 1,316 Other Public Works Street Resurfacing (miles) 5 0 0 0 2 Parks and Recreation Athletic Field Permits Issued 11 10 9 9 18 Community Center Admissions' 57,142 54,520 54,520 54,520 18,138 Library Volumes in Collection 212,175 213,177 241,921 246,299 238,114 Total Volumes Borrowed 243,055 252,356 247,608 215,955 189,145 Wastewater Average Daily Sewage Treatment (million gallons per day) 4.566 4.566 3.917 3.902 3.891 NA: Not available. 1 Excludes Nutrition Center admissions. Sources: Various City departments 188 444 of 483 City of National City Operating Indicators by Function/Program (Continued) Last Ten Fiscal Years Fiscal Year 2016 2017 2018 2019 2020 Function/Progratn Police Physical Arrests 3,418 3,078 2,733 2,567 1,693 Parking Violations 8,659 7,958 8,693 7,348 2,541 Traffic Violations 1,561 1,563 1,772 1,987 1,119 Fire Emergency Responses 8,228 8,403 8,815 8,463 7,784 Fires Extinguished 141 125 138 120 149 Inspections 900 837 914 820 599 Other Public Works Street Resurfacing (miles) 0 0 2 34 1,81 Parks and Recreation Athletic Field Permits Issued 26 28 28 13 11 Community Center Admissions' 42,762 43,396 45,342 56,988 54,906 Library Volumes in Collection 233,109 231,683 233,086 206,210 204,284 Total Volumes Borrowed 129,762 111,271 110,023 103,594 68,061 Wastewater Average Daily Sewage Treatment (million gallons per day) 3.891 3.921 3.921 3.921 4.000 NA: Not available. Excludes Nutrition Center admissions. Sources: Various City departments 189 445 of 483 City of National City Capital Asset Statistics by Function/Program Last Ten Fiscal Years Fiscal Year 2011 2012 2013 2014 2015 Function/Program Police Stations I 1 1 1 I Zone Offices 1 1 1 1 1 Patrol Units 38 38 38 34 38 Fire Stations 2 2 2 2 2 Other Public Works Streets (miles) 101 101 101 101 101 Highways (miles) 6 6 6 6 6 Streetlights 1,730 1,730 1,730 1,730 1,730 Traffic Signals 88 88 88 74 74 Parks and Recreation Acreage 84 84 84 84 84 Playgrounds 4 4 4 4 4 Baseball/Softball Diamonds 5 5 5 5 5 Soccer/Football Fields 1 1 1 1 1 Community Centers 5 5 5 5 5 Wastewater Sanitary Sewers (miles) 97 97 97 97 97 Storm Sewers (miles) 25.3 25.3 25.3 45 45 Treatment Capacity (million gallons per day) 7.1 7.1 7.1 7.2 7.2 NA: Not available. Sources: Various City departments 190 446 of 483 City of National City Capital Asset Statistics by Function/Program (Continued) Last Ten Fiscal Years Fiscal Year 2016 2017 2018 2019 2020 Function/Program Police Stations 1 1 1 1 1 Zone Offices 1 0 0 1 1 Patrol Units 45 45 45 60 60 Fire Stations 2 2 2 2 2 Other Public Works Streets (miles) 101 I08 108 108 108 Highways (miles) 6 9 9 9 9 Streetlights 1,730 1,995 1,995 2,731 2,731 Traffic Signals 75 74 80 80 82 Parks and Recreation Acreage 75 80 80 80 80 Playgrounds 5 5 5 5 5 Baseball/Softball Diamonds 5 5 5 5 5 Soccer/Football Fields 1 1 1 1 1 Community Centers 1 1 1 5 1 Wastewater Sanitary Sewers (miles) 97 104 104 104 104 Storm Sewers (miles) 45 96 96 96 96 Treatment Capacity (million gallons per day) 7.2 7.2 7.2 7,2 7,2 NA: Not available. Sources: Various City departments 191 447 of 483 isconpoRkOD This page intentionally left blank. 192 448 of 483 THE PUN GROUP ACCOUNTANTS & ADVISORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMVMPLJANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor's Report To the Honorable Mayor and Members of the City Council of the City of National City National City, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the govermnental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of National City, California (the "City"), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated February 25, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for determining audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 4365 Executive Drive, Suite 710, San Diego, California 92122 Tel: 858-242-5100 • Fax: 858-242-5150 vvvvFv.pungroup.corn 449 of 483 To the Honorable Mayor and Members of the City Council of the City of National City National City, California Page 2 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. AA' /1-4arl-/ San Diego, California February 25, 2021 194 450 of 483 The following page(s) contain the backup material for Agenda Item: Update on American Rescue Plan Act. (City Manager) Please scroll down to view the backup material. 451 of 483 Item # 03/16/21 Update on American Rescue Plan Act (City Manager) 452 of 483 The following page(s) contain the backup material for Agenda Item: 2020 Housing Element Annual Progress Report pursuant to California Code Section 654000. (Planning) Please scroll down to view the backup material. 453 of 483 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: March 16, 2021 AGENDA ITEM NO. ITEM TITLE: 2020 Housing Element Annual Progress Report pursuant to California Code Section 654000. PREPARED BY: Martin Reeder, AICP — Principal Planner DEPARTMENT: Commevelopment PHONE: 619-336-4313 EXPLANATION: California Government Code section 65400 requires that each city and county prepare an annual progress report on the status of the housing element of its general plan and progress in its implementation. The report is due on April 1 for the previous calendar year and is submitted to the Department of Housing and Community Development and the Governor's Office of Planning and Research. The annual progress report fulfills state housing law requirements to report certain information, including the progress in meeting the City's share of the Regional Housing Needs Assessment. Furthermore, submitting the report to the state ensures that the City is eligible for grants and other funding sources that require the filing of the report. The report is also submitted to the San Diego Association of Governments to qualify for certain discretionary funds administered by SANDAG. APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. N/A APPROVED: APPROVED: ENVIRONMENTAL REVIEW: Not considered a project per the California Environmental Quality Act. ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Accept and file the report. BOARD / COMMISSION RECOMMENDATION: Not Applicable ATTACHMENTS: 1. Background 2. Annual Progress Report 454 of 4831 BACKGROUND REPORT Government Code section 65400 requires that each city and county prepare an Annual Progress Report (APR) on the status of the Housing Element of its General Plan and progress in its implementation using forms and definitions adopted by the Department of Housing and Community Development (HCD). The forms are used for satisfying the reporting requirements of Government Code section 65400, subdivision (a)(2). The forms and instructions, originally adopted March 27, 2010, have been updated to incorporate new APR requirements pursuant to Chapter 374, Statutes of 2017 (Assembly Bill 879) and Chapter 366, Statutes of 2017 (Senate Bill 35). The APR is submitted to the Department of Housing and Community Development and the Governor's Office of Planning and Research (OPR) on or before April 1 of each year using the forms and tables specified by HCD. Providing the report to HCD and OPR fulfills state housing law requirements to report certain information, including the progress in meeting the City's share of the Regional Housing Needs Assessment (RHNA). Furthermore, submitting the APR to the state ensures that the City is eligible for grants and other funding sources that require filing of the report. The report is also submitted to the San Diego Association of Governments to qualify for certain discretionary funds administered by SANDAG. The APR consists of the following tables: • TABLE A — Housing Development Applications Submitted Table A includes discretionary and ministerial entitlements. In 2020, no discretionary entitlements were needed; only ministerial (building) permits were required. Building permit applications were submitted for a total of 13 units within 11 projects in 2020: 7 single-family detached units; 3 accessory dwelling units; and 3 multi -family units. • TABLE A2 — Annual Building Activity Report Summary - New Construction, Entitled, Permits, and Completed Units. Table A2 summarizes entitlements, permits, and completion of units during the reporting period. Building permits were issued for 314 units within 4 projects; none of those units received final approval for occupancy during the 2020 reporting period. • TABLE B — Regional Housing Needs Allocation Progress — Permitted Units Issued By Affordability. Table B shows the City's progress in achieving its RHNA allocation during the housing element planning period (2013-2021). The total (beginning) RHNA allocation is 1,863 units. Through 2020, 1109 units have been permitted. The remaining need is 754 units. ATTACHMENT 1 455 of 483 2 • TABLE C — Sites Identified or Rezoned to Accommodate Shortfall Housing Need. This requirement does not apply to the City since adequate sites were identified in the adopted Housing Element. • TABLE D — Program Implementation Status pursuant to Government Code section 65583. Table D provides the status of the implementation of programs in the adopted Housing Element. • TABLE E — Commercial Development Bonus Approved pursuant to Government Code section 65915.7. No units were produced in the City using this provision of the Government Code. • TABLE F Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1, subdivision (c)(2). No units were produced in the City using this provision of the Government Code. • TABLE G Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of. One property (405-419 West 18th Street) was disposed of during the 2020 reporting period. The property was transferred to a developer, Habitat For Humanity. Units are identified by affordability by household income as established by HCD's income limit charts. The household income categories are based on the area median income (AMI) for San Diego County, which was $92,700 for a family of four in 2020. • Very low-income households (50% AMI) • Low-income households (80% AMI) • Moderate -income households (120% AMI) • Above -moderate households (>120% AMI) Unit types are categorized as one of the following: • Single-family detached units • Single-family attached units • Two to four unit structure • Five or more unit structure • Accessory dwelling unit • Mobile home/manufactured home Units are identified as either proposed or planned at initial occupancy for either renter occupant (R) or owner occupant (0) where apparent at the time of project application. 2 456 of 483 3 Jurisdiction National City Reporting Year 2020 (Jan. 1 - Dec. 31) I Building Permits Issued by Affordability Summary Income Level Current Year Very Low Deed Restricted 65 Non -Deed Restricted 0 Low Deed Restricted 65 Non -Deed Restricted 0 Moderate Deed Restricted 0 Non -Deed Restricted 0 Above Moderate 184 Total Units 314 Note: Units serving extremely low-income households are included in the very low- income permitted units totals Housing Applications Summary Total Housing Applications Submitted: 11 Number of Proposed Units in All Applications Received: 0 Total Housing Units Approved: 0 Total Housing Units Disapproved: 0 Use of SB 35 Streamlining Provisions Number of Applications for Streamlining 0 Number of Streamlining Applications Approved 0 Total Developments Approved with Streamlining 0 Total Units Constructed with Streamlining 0 Units Constructed - SB 35 Streamlining Permits Income Rental Ownership Total Very Low 0 0 0 Low 0 0 0 Moderate 0 0 0 Above Moderate 0 0 0 Total 0 0 0 Cells in grey contain auto -calculation formulas ATTACHMENT 2 3 457 of 483 4 Jurisdiction National cny Reporting Year 2020 (Jan. 1 - Dec.31) ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title 25 $6202) Note: "+" indicates an optional field Cells in grey contain 4610.o kulation formulas Table A Housing Development Applications Submitted Project Identifier Unit Types Y Date Application Submitted Proposed Units -Affordability by Household Incomes Total Approved Units by Project Total Disapproved Units by Project Streamlining Notes 1 2 3 4 5 6 7 8 9 10 Prior APN' Currant APN Street Address Project Name' Ilk Local Jurisdiction Tracking ID' Unit Category (SFA,SFD,2 to 4.5+ADU.MHI Tenure R•Rarner o-Owrrer Date Application Submitted (see instructions) Very Low. Income Deed Restricted Very Low- Income Non Deed Restricted Low -Income Deed Restricted Low4ncome Non Dead Restricted Moderate- Income Dead Restricted Moderate- Income Non Deotl Restricted Above Motlerale- Income Total PROPOSED Total APPROVED Total DISAPPROVED Was APPLICATION Notes SUBMITTED Pursuant to DC 65913.4(b)Y (SS 35 Streamlining) Units by Project Units by project Units by Project Summary Row: Start Data Entry Below S 0 0 0 0 0 o a o 0 o g 55711202 711 Palm Ave. 2to4 R 11/1012021 3 3 3 No 56133004 1227 Roselawn St ADU R 5/122021 1 1 1 No 55618121 325'J'Ave. ADU R 2/4/2021 1 1 1 No 55704202 1728 E. 5th St SFD 0 3132021 1 1 1 No 55908514 421 W. 18th St SFD 0 8/12)2021 1 1 1 No 55908519 401 W.18th St. SFD 0 8/122021 1 1 1 No 56113203 1642 E.1718St ADU R 7272021 1 1 1 No 55908515 417 W.18th Si. SFD 0 B/122021 1 1 1 No 55908516 413 W.18th St SFD 0 8/122021 1 1 1 No 55908517 409 W.1801St. SFD 0 8/1212021 1 1 1 No 55908518 405 W.180iSi. SFD 0 0)122021 1 1 1 1 No 4 458 of 483 Jurisdiction National City Reporting Year 2020 (Jan. 1 - Dec. 31) ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (UUFZ I itle 25 .b2U2) Table A2 Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units Project Identifier Unit Types Affordability by Household Incomes - Completed Entitlement 1 2 3 4 5 6 Prior APN+ Current APN Street Address Project Name+ LocalLow- Jurisdiction Tracking ID+ Unit Category (SFA,SFD,2 to 4,5+,ADU,MH) Tenure R=Renter 0-Owner Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted Income Deed Restricted Low- Income Non Deed Restricted Moderate- Income Deed Restricted Moderate- Income Non Deed Restricted Above Moderate- Income Entitlement Date Approved # of Units issued Entitlements Summary Row: Start Data Entry Below 0 0 0 0 0 0 0 0 556-472-26 130 E. 8th St. 5+ R 3/27/2019 0 557-150-21 2203 E. 8th St. 5+ R 0 560-192-17 704 E. 19th St. 5+ R 0 556-554-25 1125 National City Blvd. Courtyards at Kimball Apartments 5+ R 0 5 459 of 483 6 National City 2020 (Jan. 1 - Dec. 31) Note: "+" indicates an optional field Cells in grey contain auto -calculation formulas Project Identifier Affordability by Household Incomes - Building Permits 7 8 9 Current APN Street Address Project Name+ Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted Low- Income Deed Restricted Low- Income Non Deed Restricted Moderate- Income Deed Restricted Moderate - Income Non Deed Restricted Above Moderate- Income Building Permits Date # of Units Issued Building Permits Issued tart Data Entry Below 65 0 65 0 0 0 184 314 556-472-26 130 E. 8th St. 127 3/5/2020 127 557-150-21 2203 E. 8th St. 39 11/17/2020 39 560-192-17 704 E. 19th St. 18 6/4/2020 18 556-554-25 1125 National City Blvd. Courtyards at Kimball Apartments 65 65 6/2/2020 130 6 460 of 483 7 National City 2020 (Jan. 1 - Dec. 31) Project Identifier Affordability by Household Incomes - Certificates of Occupancy 10 11 12 Current APN Street Address Project Name+ Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted Low- Income Deed Restricted Low- Income Non Deed Restricted Moderate- Income Deed Restricted Moderate- Income Non Deed Restricted Above Moderate- Income Certificates of Occupancy or other forms of readiness (see instructions) Date Issued # of Units issued Certificates of Occupancy or other forms of readiness tart Data Entry Below 0 0 0 0 0 0 0 0 556-472-26 130 E. 8th St. 0 557-150-21 2203 E. 8th St. 0 560-192-17 704 E. 19th St. 0 556-554-25 1125 National City Blvd. Courtyards at Kimball Apartments 0 7 461 of 483 8 National City 2020 (Jan. 1 - Dec. 31) Project Identifier Streamlining Infill Housing with Financial Assistance and/or Deed Restrictions Housing without Financial Assistance or Deed Restrictions Term of Affordability or Deed Restriction Demolished/Destroyed Units Notes 13 14 15 16 17 18 19 20 21 Current APN Street Address + Project Name How many of the units were Extremely + Low Income? Was Project APPROVED Will Units? YIN Assistance Programs for Each Development (see instructions) Deed Restriction Type (see instructions) For units affordable without financial assistance or deed restrictions, explain how the locality determined the units were affordable (see instructions) Term of Affordability or Deed Restriction (years) (if affordable in perpetuity enter + 1000) Number of Demolished/D estroyed + Units Demolished or Destroyed Units Demolished/ Destroyed Units Owner or + Renter Notes using GC 65913.4(b)? (SB 35 Streamlining) YIN tart Data Entry Below 0 0 1 0 0 556-472-26 130 E. 8th St. 0 N Y 0 557-150-21 2203 E. 8th St. 0 N Y 0 560-192-17 704 E. 19th St. 0 N Y 1 Demolished 0 556-554-25 1125 National City Blvd. Courtyards at Kimball Apartments 0 N Y N/A 55 0 8 462 of 483 9 Jurisdiction National City Reporting Year 2020 (Jan. 1 - Dec. 31) ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title 25 §6202) This table is auto -populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs. Please contact HCD if your data is different than the material supplied here Table B Regional Housing Needs Allocation Progress Permitted Units Issued by Affordabi ity 1 2 3 4 Income Level RHNA Allocation by Income Level 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total Units to Date (all years) Total Remaining RHNA by Income Level Very Low Deed Restricted 465 45 65 110 355 Non -Deed Restricted Low Deed Restricted 353 8 108 65 181 172 Non -Deed Restricted 9 463 of 483 10 Jurisdiction National City Reporting Year 2020 (Jan. 1 - Dec.31) ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Tile 25 §6202) Note: ^+' Indkatea an optional field Cells In grey contain auto -calculation formulas Table C Sites Identified or Rezoned to Accommodate Shortfall Housing Need Project Identifier Date of Rezone RHNA Shortfall by Household Income Category Type of Shortfall Shea Description 2 3 4 5 6 T 6 9 10 11 APN Street Address Project Name'Juriedbtion Local Tracking ID' pats of Rezone Vary Low- bcoma Low -Income Motlerate-Income Abow Modanle- Income Type of Shortfall Parral Sixe (Acne) General Plan DealgnDesignationng Zoni Minimum Density Allowed Maximum Density Allowed Realistic Capacity Description of Existing Dsas Uses Summary Row: Start Data Entry Below ■ 1 r 10 464 of 483 11 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title 25 §6202) Jurisdiction National City Reporting Year 2020 (Jan. 1 - Dec. 31) Table D Program Implementation Status pursuant to GC Section 65583 Housing Programs Progress Report Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element. 1 2 3 4 Name of Program Objective Timeframe in H.E Status of Program Implementation 1. Rental Rehabilitation Program Rehabilitate an an average of 10 units per year. Rehabilitate an average of ten units per year for total of 80 units during the eight. year planning cycle. No units rehabilitated with Housing Authority funding. 2. Ownership Housing Rehabilitation Program Rehabilitate an average of five units per year. Rehabilitate an average of five units per year for a total of 40 units duringthe eight -year planning cylce. No single-family units rehabilitated during the calendar year and 11 to -date during the planning cycle. 3. Code Enforcement Program Abate an average of 250 cases per year. Abate an average of 250 cases per year for a total of 2,000 cases during the eight -year planning cycle. 30 housing -related code violations were abated during the calendar year and over 1,392 to -date during the planning cycle. 4. Housing Inspections Program Inspect an average of 125 units per year. Inspect an average of 128 units per year for a total of 1,024 units during the eight -year planning cycle. 36 housing units were inspected during the calendar year and over 1,764 to -date during the planning cycle. 5. At -Risk Housing Program. Conserve the affordability of 795 housing units at risk of converting to market rate. Monitor status of at -risk units annually during the eight -year planning cycle. No at -risk units converted to market rate during the calendar year. 11 465 of 483 12 6. Housing Choice Voucher (Section 8) Rental Assistance Program. Maintain 137 units of project -based housing and 1,022 tenant -based vouchers. Monitor annually during the eight -year planning cycle. Continued to maintain 149 project -based and 974 tenant -based vouchers. 7. Tenant Relocation Program. Relocate any tenants displaced due to code enforcement. Continue to offer the program during the eight- year planning cycle. 6 tenants relocated during the calendar year and 22 to -date during the planning cycle. 8. Housing Stock Conditions Program. Estimate of the number of dwelling units in need of repair or replacement. Conduct survey annually during the eight -year planning cycle. The last survey was conducted in 2010. 9. Clean-up Events Program. Conduct an average of four events per year. Conduct an average of four events annually fora total of 32 events during the eight -year planning cycle. Zero clean-up event during the calendar year and 16 to -date during the planning cycle. 10. Developer Information Program. Update and maintain informational materials as policies, standards, guidelines, and ordinances are amended or adopted. Update as policies, standards, guidelines, and ordinances are amended or adopted during the eight -year planning cycle. Ongoing updates as polices are amended or adopted. 11. GIS Database Program. Update database as new information becomes available in a compatible format. Monitor data sources and update upon availability during the eight -year planning cycle. Ongoing updates to database as needed and as available. 12. Community Housing Development Organizations Program. Identify and fund CHDOs to pursue affordable housing projects and programs. Conduct outreach annually as part of the budget process and as funding sources become available during the eight -year planning cycle. Six units underconstruction during the planning cycle. 12 466 of 483 13 Jurisdiction National City Reporting Period 2020 (Jan. 1 - Dec. 31) ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title 25 §6202) Note: "+" indicates an optional field Cells in grey contain auto -calculation formulas Table E Commercial Development Bonus Approved pursuant to GC Section 65915.7 Project Identifier Units Constructed as Part of Agreement Description of Commercial Development Bonus Commercial Development Bonus Date Approved 1 2 3 4 APN Street Address Project Name' Local Jurisdiction Tracking ID Very Low Income Low Income Moderate Income Above Moderate Income Description of Commercial Development Bonus Commercial Development Bonus Date Approved Summary Row: Start Data Entry Below Annual Progress Report 13 467 of 483 January 2020 14 Jurisdiction National City Reporting Period 2020 (Jan. 1 - Dec. 31) ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title 25 §6202) Note: "+" indicates an optional field Cells in grey contain auto -calculation formulas Table F Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c) Please note this table is optional: The jurisdiction can use this table to report units that have been substantially rehabilitated, converted from non -affordable to affordable by acquisition, and preserved, including mobilehome park preservation, consistent with the standards set forth in Government Code section 65583.1, subdivision (c). Please note, motel, hotel, hostel rooms or other structures that are converted from non-residential to residential units pursuant to Government Code section 65583.1(c)(1)(D) are considered net -new housing units and must be reported in Table A2 and not reported in Table F. Activity Type Units that Do Not Count Towards RHNA+ Listed for Informational Purposes Only Units that Count Towards RHNA Note - Because the statutory requirements severely limit what can be counted, please contact HCD to receive the password that will enable you to populate these fields. The description should adequately document how each unit complies with subsection (c) of Government Code Section 65583.1+ Extremely Low- Income+ Very Low -Income+ Low -Income+ TOTAL UNITS+ Extremely Low- Income' Very Low - Income+ Low -Income+ TOTAL UNITS+ Rehabilitation Activity Preservation of Units At -Risk 9�� Acquisition of Residential Units Mobilehome Park Preservation r ' Total Units by Income Annual Progress Report 14 468 of 483 January 2020 15 Jurisdiction National City Reporting Period 2020 (Jan. 1 - Dec. 31) NOTE: This table must only be filled out if the housing element sites inventory contains a site which is or was owned by the reporting jurisdiction, and has been sold, leased, or otherwise disposed of during the reporting year. ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation (CCR Title 25 §6202) Note: "+" indicates an optional field Cells in grey contain auto -calculation formulas Table G Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of Project Identifier 1 2 3 4 APN Street Address + Project Name Local Jurisdiction Tracking ID Realistic Capacity Identified in the Housing Element Entity to whom the site transferred Intended Use for Site Summary Row: Start Data Entry Below 559-085-08-00 405 419 W 18th Street Habitat for Humanity 3 Habit for Humanity Build 6 affordable units 15 469 of 483 The following page(s) contain the backup material for Agenda Item: City Manager Report. (City Manager) Please scroll down to view the backup material. 470 of 483 Item # 03/16/21 City Manager Report (City Manager) 471 of 483 The following page(s) contain the backup material for Agenda Item: Discussion regarding Public Comment at City Council Meetings. (City Manager) Please scroll down to view the backup material. 472 of 483 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: March 16, 2021 AGENDA ITEM NO. ITEM TITLE: Discussion regarding Public Comment at City Council Meetings (City Manager) PREPARED BY: Tony Winney, Assistant City Manager DEPARTMENT: City Manager's Office w PHONE: (619) 336-4240 EXPLANATION: (See Explanation (Attachment A) for more information) APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. n/a ENVIRONMENTAL REVIEW: n/a ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: City Council discussion and provide staff direction. BOARD / COMMISSION RECOMMENDATION: n/a ATTACHMENTS: Attachment A — Explanation Attachment B — City Council Policy #104 (portion) Attachment C — City Clerk's Office Survey of San Diego County Cities Public Comment Policies Attachment D — SD County Cities Public Comment Survey 473 of 483 ATTACHMENT A Beginning on March 2, 2021, at the Virtual Regular City Council Meeting staff implemented an alternative for the public to provide "Live Comment" during Public Comment periods, during General Public Comment at the beginning of the meeting concerning matters not listed on the agenda, and additional comment during each item following. Staff recognized the opportunity to enhance the virtual meeting experience providing the public an additional option to participate in the Virtual City Council Meetings. In addition to live comment, any written comment received by City Clerk's Office prior to the deadline is accepted and provided via email to the City Council prior to the start of the City Council Meeting. Allowing the City Council time to read and consider all input from the public. Any comment received after the deadline is retained in the City Clerk's Office as record, and uploaded to the City website to be included with the agenda material. Both forms of comments written and live are occasions for the public participation, and mirror the process that occurs in the Council Chamber at an "in person" meetings. In person meetings allow the public to appear before the City Council at the podium to provide comment. Additionally, when emails are received in the City Clerk's Office, they are provided to the City Councilmember on the dais prior to the meeting. Those comments are not read into the record by the City Clerk. Staff provided ample notice of this addition to process which included an outline of the options to participate, additionally a process on "how to register for the live comment". Notification was provided on the City website agenda cover sheet, on the homepage of the City Website, a "Public Comment" page was created under both the City Council and the City Clerk's Office's, and the social media public outreach utilized by the City. The Brown Act requires notice of a Regular City Council Meeting to be posted 72 hours in advance. National City Regular City Council Meeting agenda packets are posted 5 days, or 121 hours in advance of the meeting. Notice on the City website, bulletin boards, e-notifications, and for the March 2 meeting specifically because of the change in public comment procedure, social media platforms were heavily utilized as you can see in Attachment B. The recent implementations in public comment are in alignment with City Council Policy #104: Section VI Public Meeting Communications, subsection C "Communications with Persons Addressing the City Council." (Attachment C) C (2). Public Comment (Non -agenda): At all regular City Council Meetings, speakers shall have the right to address the City Council on any matter within the elected body's jurisdiction, subject to a three (3) minute time limit or less, depending on the number of speakers. As C(2)a states that "at each regular Council meeting, up to 30 minutes shall be reserved for Public Comment." In addition to the public comment both oral and written, a Spanish speaking interpreter was provided for the meeting of March 2 in anticipation of needs of the public that may require translation specifically for the cannabis item. This Interpreter was in the meeting simultaneously translating the complete 6.5 hours of the meeting. Attachment D provides an overview of the public comment policies of other San Diego County cities. Of the 17 other cities within the County not including City of San Diego, Six (6) Cities accept live comment during meetings, each comment is limited to three (3) minutes or less. The other 11 cities eight (8) read comment into the record, eight (8) distribute to Council in written form. Staff believes that the City of National City is providing best practices by allowing live comment and written comment (provided to City Council via email prior to the meeting and not read into the record), all comments are noted on minutes and retained on file in the City Clerk's Office. 474 of 483 Social Media Public Outreach For March 2, 2021 City Council Meeting Attachment B Thursday, February 25 @ 4:00 p.m. FACEBOOK & TWITTER & INSTAGRAM NOW ACCEPTING Live Public Comment for City Council Meetings. The community may choose to make public comment in one of two ways: 1. Register to speak during a City Council meeting using Zoom. 2. Submit a written comment to be entered into the official meeting record. For more information on the procedures for public comments please visit www.na llonalcfLyca. gov/puDlleeomment CIT COI V:Il..1 Iu'I'1.11.1TEErriM; %A-tioNALcrry 4 Ark Live Public Comment wwricnationaleitymgovipublieokunient Rog i r before coo pm on meeting ciuy Email Comments P tb1iceommentariationaleityge,..gov Submit before qua pm on meeting day Watch Meeting www.n atiortalcitycagov,Wwebcaz+t Friday, February 26 — February 27 FACEBOOK & INSTAGRAM stories — stories are available for 24 hours IltTtLtL ‘IEE i 1I \lll. Live Public Comnieiat LL.! ;' Enuni Comments u411 .Hit taESg,t, 1X8��rlana51i.i}i/U�iLg y Watch Meeting . k0i 7aef ttsh api-� 0 ktb Slt Monday, March 1 @ 9:00 a.m. FACEBOOK #NationalCity public meetings are being held virtually in order to protect the safety of residents, employees and the communities we serve. Join us this week for the following public meetings this week: 475 of 483 Attachment B Planning Commission - http://ow.ly/mCAK50DK1o3 City Council Meeting (now with LIVE public comment)- http://ow.ly/Bonu50DK1pq Library Board - http://ow.ly/4oYj50DK1pT Public comments are accepted for ALL our meetings in writing and beginning this week the City Council will also be accepting live public comments. Be sure to check each meeting agenda for the public comment deadlines and how to watch the meeting live. Twitter Join #NationalCity virtually this week during our following public meetings. Be sure to check each meeting agenda for the public comment deadlines and how to watch the meeting live. Meeting agendas and event information can be found on our calendar here: http://ow.ly/kROW50DK1tP March Plan I stl;fConlin i,sioI1 -co March 2 City C tuncil 45;oo pm MEIN Library E'xtr s.1ga pm Monday, March 1— March 2 FACEBOOK & INSTAGRAM stories — stories are available for 24 hours VEIL lll`l'l ii %1EGT1\t; Live Public Comment Z:atiasil Comments twicarflt'AII 1i ufn kit,{ u ya4 ncearotartpraur�rtatWUIy Wateh Meeting n•i:4..aauxsk-5t-.i+*; Mc+rtsoL ponommomolia 476 of 483 Attachment B Tuesday, March 2 @8:20 a.m. FACEBOOK NOW ACCEPTING Live Public Comment for tonight's City Council meeting until 4:00 p.m. The community may choose to make public comment in one of two ways: 1. Register to speak during a City Council meeting using Zoom. 2. Submit a written continent to be entered into the official meeting record. For more information on the procedures for public comments please visit www.nationalcityca.gov/publiccomment To review the agenda for the March 2 City Council meeting please visit http://ow.ly/S4tr50DMWak Twitter NOW ACCEPTING Live Public Comment for #NationalCity Council Meetings. For more information on the procedures for public comments please visit: http://nationalcityca.gov/publiccomment To review the March 2, 2021 City Council agenda: http://ow.ly/GEBb50DMPoV • f 1 i:0l \Cli.'t Hill U. Xii;,F:TINC NAT1ONALIGiTy Live Public Comment 41 www, n ati orate i tycae. g ovipub l flootranen t Register before good pru on meeting day Email Comments Publice,.ommentl natiQnalcityca,.gov Submit before coo pm an meeting diky Watch Meeting lvtvw.nationalcityca,goviwebemt 477 of 483 ATTACHMENT C IV. REMOTE ACCESS TO MEETINGS A. Internet Broadcast: "Live" streaming video of City Council meetings is available at www,nationalcityca.gov. Archived meetings are also available online. B. E-Notification: Individuals may sign up via the City's website to receive email notifications of published City Council and board and commission meeting agendas, City news, special events and more. V. PUBLIC ASSISTANCE & ACCOMMODATIONS Upon request, the City Council agenda and backup materials will be made available in alternative formats. Any person who requires a disability -related modification or accommodation, including auxiliary aids or services, to participate in the public meeting, may request a modification, accommodation, aid, or service by contacting the City Clerk's Office either in person or by telephone no later than 10:00 a.m. on the day preceding the scheduled meeting. VI. PUBLIC MEETING COMMUNICATIONS A. Communications between City Councilmembers: 1. Councilmembers wishing to speak should request the floor by being recognized by the Presiding Officer before speaking. The Presiding Officer must recognize any Councilmember who seeks the floor when appropriately entitled to address the City Council. 2. No Councilmember shall speak again until all Councilmembers have had the opportunity to speak. 3. Councilmembers shall remember that the purpose of the Council meeting is to conduct the business of the City. Councilmembers shall avoid repetition and shall limit their comments to the subject matter at hand. Councilmembers shall endeavor to express their views without engaging in unnecessarily lengthy debates. 4. When one Councilmember is speaking, other Councilmembers shall not interrupt, disrupt or disturb the speaker. During questions and deliberations, the Presiding Officer may vary the speaking sequence of Councilmembers from item to item. B. Email Communications between City Councilmembers: Because email communications can ultimately lead to the exchange of information intended to, or which may, create collective concurrence among a quorum of Councilmembers, e-mall communications between Councilmembers relative to Council business should be avoided at all times. 6 478 of 483 ATTACHMENT C C. Communications with Persons Addressing the City Council: Members of the public may address the City Council during the Public Comment period and/or prior to the consideration of any agenda item. Persons shall address the City Council as a whole and shall not engage in a dialogue with individual Councilmembers, staff, or with other members of the audience. Any person wishing to speak, whether during the Public Comment period or on an agenda item, is requested to complete a "Request to Speak" form and submit the form to the City Clerk prior to the calling to order of the meeting or as soon thereafter as possible. Filling out a speaker slip is not required to participate. All those addressing the Council shall do so from the podium. The City Council may not prohibit public criticism of the City in general, City staff, or members of the City Council, its policies, procedures, programs, or services of an agency or its acts or omissions. A speaker may not be stopped from speaking because either the Presiding Officer or Councilmembers disagree with the viewpoint being expressed. 1. Translation Services: The City strives to provide simultaneous Spanish interpreting services at all regular City Council meetings, through the use of headsets. An interpreter is also available to interpret for speakers who wish to address the Council. 2. Public Comment (Non -agenda): At all regular City Council meetings, speakers shall have the right to address the City Council on any matter within the elected body's jurisdiction, subject to a three (3) minute time limit or less, depending on the number of speakers. The Council may listen to the speaker's comments, but cannot discuss or take action on communications not on the agenda. Non -agenda Public Comment may be referred to the City Manager for administrative action or placement on a subsequent agenda, with a majority vote of the Council. a. At each regular Council meeting, up to 30 minutes shall be reserved for Public Comment. b. The City Clerk will review the speaker slips and inform the Presiding Officer of the number of slips. If the number of speakers, at three (3) minutes each, exceeds the 30-minute allotted time for Public Comment, the Presiding Officer may reduce the time allotted to each speaker, extend Public Comment time, or continue remaining speakers to the end of the meeting. c. Donations of time from one speaker to another will not be permitted. 7 479 of 483 ATTACHMENT C d. The Presiding Officer shall have the authority to reduce equally each speaker's time to accommodate a larger number of speakers. e. Speaker slips for Public Comment will be accepted by the City Clerk in the Council Chambers no earlier than 15 minutes before the meeting and up until the Public Comment portion of the agenda is finished. f. In order to ensure that non-English speakers receive the same opportunity to directly address the City Council, any member of the public who utilizes a translator shall be provided at least twice the allotted time to address the Council, unless simultaneous translation equipment is used to allow the Council to hear the translated public testimony simultaneously. (Government Code 54954.3) g. Remarks shall be addressed to the City Council as a body. h. If there is a group representing a common position, designation of a spokesperson is encouraged. The Presiding Officer may allot a mixed amount of time for presentations of this nature. 3. Public Comment (Agenda Items): Speakers shall have the right to address the City Council on items which appear on the agenda, subject to the 3-minute time limit. a. Donations of time from one speaker to another will not be permitted. b. The Presiding Officer shall have the authority to reduce equally each speaker's time to accommodate a larger number of speakers, or to limit the total speakers' time on an agenda item. c. Speaker slips for agenda items will be accepted by the City Clerk in the Council Chambers no earlier than 15 minutes before the meeting and up until the public testimony on the item is finished. Included on the speaker slip shall be the option for the individual to register support or opposition but do not wish to speak (individual must be present). d. Remarks shall be addressed to the City Council as a body and not to any member of the City Council, staff or the public, No questions shall be asked of an individual member of the City Council, staff or the public. The Presiding Officer may limit interaction between Councilmembers and public speakers to questions of clarification. 8 480 of 483 ATTACHMENT C e. If there is a group representing a common position, designation of a spokesperson is encouraged. The Presiding Officer may allot a mixed amount of time for presentations of this nature. f. In order to ensure that non-English speakers receive the same opportunity to directly address the City Council, any member of the public who utilizes a translator shall be provided at least twice the allotted time to address the Council, unless simultaneous translation equipment is used to allow the Council to hear the translated public testimony simultaneously. (Government Code 54954.3) 4. Presentations to City Council: Any information presented to the City Council for its consideration in formats such as PowerPoint, Video VHS, or DVD must be submitted to the City Clerk's office no later than the Wednesday immediately prior to the Council meeting in order to have the presentation facilitated for Council viewing and broadcast. If presentations are submitted after that deadline, it will not be possible for them to be played or displayed during the meeting, although ten (10) hard copies may be submitted to the City Clerk for distribution to the Council. Documents and presentations displayed during the Council meeting shall become a public record and must be submitted to the City Clerk for retention. VII. AGENDA SEQUENCE AND ORDER OF BUSINESS Generally, the agenda sequence and order of business at regularly scheduled meetings of the City Council shall be as follows, unless otherwise reordered by the Presiding Officer with the consensus of the City Council. A. Call to Order: The Presiding Officer officially calls the meeting to order. B. Roll Call: Before the City Council shall proceed with the business of the Council, the City Clerk shall call the roll of the members and the names of those present shall be entered in the minutes. The later arrival of any absentee shall also be entered in the minutes. C. Pledge of Allegiance: Each agenda of a regularly scheduled Council meeting shall provide an item for the recital of the "Pledge of Allegiance" to both the United States flag and the California flag. D. Public Comments: Speakers shall have the right to address the City Council on any matter within the elected body's jurisdiction, subject to a 3-minute time limit or less, depending on the number of speakers. The City Council may listen to the speaker's comments, but cannot discuss or take action on communications not on the agenda. Non -agenda public comment may be referred to the City Manager for administrative action or placement on a subsequent agenda. 9 481 of 483 ATTACHMENT D Survey of SD County Cities - Public Comment Policies City Meeting Platform Used Public Comment (minutes per speaker) Receive Comment Via Email Only If Receive Written Comment is it Read into the Record Accept Call -Ins During Live Meeting Allow Comment During Virtual Meeting Deadline to Submit Comment to City Clerk's Office Chula Vista Live stream - using on -site tech and controls 2 minutes per comment Additional 2 minutes if Public Hearing Yes No No No Allowed up to and during the item. Coronado Zoom 3 minutes unless otherwise changed by Mayor Yes No No No 11 am day of meeting El Cajon Live stream - using on -site tech and controls 300 word limit Yes Yes - Limited to 300 words No No Deadline to submit comment via the website is up to conclusion or vote of each item. Encinitas Zoom 3 minutes unless otherwise changed by Mayor 30 minutes are allowed for Public Comment items not listed on the agenda. Yes Yes No Register prior to meeting Deadline 2 pm day of meeting Limited to Agenda Items Only 3 pm day of meeting Escondido Public TV Cox Channel 19 3 minutes unless otherwise changed by Mayor Yes Yes No La Mesa Zoom 3 minutes unless otherwise changed by Mayor Yes Yes - Limited to 300 words No 4 pm day of meeting Lemon Grove Zoom 3 minutes unless otherwise changed by Mayor Yes Yes No 5 pm day before meeting National City Zoom 3 minutes unless otherwise changed by Mayor Yes No Yes Yes 4 pm day of meeting San Marcos Live stream - using on -site tech and controls 5 minutes unless otherwise changed by Mayor Yes Yes No 4 pm day of meeting Solana Beach Zoom 3 minutes unless otherwise changed by Mayor Yes No No Noon day of meeting Vista Zoom 3 minutes unless otherwise changed by Mayor Yes No No Audio Only - Raise virtual hand to speak or press *9 (on phone) and 482 of 483 ATTACHMENT D City Meeting Platform Used Public Comment (minutes per speaker) Receive Comment Via Email Only If Receive Written Comment is it Read into the Record Accept Call -Ins During Live Meeting Allow Comment During Virtual Meeting Deadline to Submit Comment to City Clerk's Office Carlsbad Live stream - using on -site tech and controls 3 minutes unless otherwise changed by Mayor Yes No Yes, but must register prior to meeting at least one hour before start time 2pm day of meeting Del Mar Livestream - 12milesout (service) 3 minutes unless otherwise changed by Mayor Yes No Yes Pre -Register online to receive email with number and instructions on how to call into the meeting. noon day of meeting Imperial Beach Zoom 3 minutes unless otherwise changed by Mayor Yes Yes Yes Audio Only - Raise virtual hand to speak or press *9 (on phone) and unmuted up to conclusion or vote of item Oceanside Zoom 3 minutes unless otherwise changed by Mayor Yes Yes Yes Yes 4 pm day of meeting for items on the agenda - for items not listed on the agenda a deadline of midnight the day prior to submit general comment Poway Live stream - using on -site tech and controls 3 minutes unless otherwise changed by Mayor Yes No Yes None Santee Live stream - using on -site tech and controls 3 minutes unless otherwise changed by Mayor Yes No Yes Yes 483 of 483