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2022 12-06 CC AGENDA PKT
AGENDA Consolidated Regular Meeting City Council Chamber - 1243 National City Boulevard, National City, CA Alejandra Sotelo-Solis, Mayor Marcus Bush, Vice-Mayor Brad Raulston, City Manager Jose Rodriguez, Councilmember Barry J. Schultz, Interim City Attorney Ron Morrison, Councilmember Luz Molina, City Clerk Mona Rios, Councilmember R. Mitchel Beauchamp, City Treasurer _______________________________________________________________________ The City Council also sits as the City of National City Community Development Commission, Housing Authority, Joint Powers Financing Authority, and Successor Agency to the Community Development Commission as the National City Redevelopment Agency Thank you for participating in local government and the City of National City Council Meetings. Meetings: Regular City Council Meetings are held on the first and third Tuesday of the month at 6:00 p.m. Special Closed Session Meeting and Workshops may be same day, the start time is based on needs. Check Special Agendas for times. Location: Regular City Council Meetings are held in the Council Chamber located at City Hall, 1243 National City Boulevard, National City, CA 91950, the meetings are open to the public. Agendas and Material: Agendas and Agenda Packet for items listed are available on the City website, and distributed to the City Council no less than 72 hours prior to the City Council Meeting. Sign up for E-Notifications to receive alerts when items are posted. Public Participation: Encouraged in a number of ways as described below. Members of the public may attend the City Council Meeting in person, watch the City Council Meeting via live web stream, or participate remotely via Zoom. Recording of Meetings are archived and available for viewing on the City’s website. Public Comment: Persons wishing to address the City Council on matters not on the agenda may do so under Public Comments. Those wishing to speak on items on the agenda may do so when the item is being considered. Please submit a Speaker’s Slip to the City Clerk prior to the meeting or immediately following the announcement of the item. All comments will be limited up to three (3) minutes. The Presiding Officer shall have the authority to reduce the time allotted to accommodate for a large number of speakers. (City Council Policy 104) If you wish to submit written comment email to the City Clerk’s Office at least 2 hours prior to the City Council Meeting to allow time for distribution to the City Council. Spanish Interpretation Services: Spanish Interpretation Services are available, please contact the City Clerk prior to the start of the meeting for assistance. American Disabilities Act Title II: In compliance with the American Disabilities Act of 1990, persons with a disability may request an agenda in appropriate alternative formats as required by Title II. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office (619) 336 -4228 at least 24 hours in advance of the meeting. AGENDA Consolidated Regular Meeting City Council Chamber - 1243 National City Boulevard, National City, CA Alejandra Sotelo-Solis, Mayor Marcus Bush, Vice-Mayor Brad Raulston, City Manager Jose Rodriguez, Councilmember Barry J. Schultz, Interim City Attorney Ron Morrison, Councilmember Luz Molina, City Clerk Mona Rios, Councilmember R. Mitchel Beauchamp, City Treasurer _______________________________________________________________________ The City Council also sits as the City of National City Community Development Commission, Housing Authority, Joint Powers Financing Authority, and Successor Agency to the Community Development Commission as the National City Redevelopment Agency Gracias por participar en las reuniones del gobierno local y del Consejo de la Ciudad de National City. Reuniones: Las reuniones regulares del Consejo Municipal se llevan a cabo el primer y tercer martes del mes a las 6:00 p.m. La reunión especial de sesión privada y los talleres pueden ser el mismo día, la hora de inicio se basa en las necesidades. Consulte las agendas especiales para conocer los horarios. Ubicación: Las reuniones regulares del Concejo Municipal se llevan a cabo en la Cámara del Consejo ubicada en el Ayuntamiento, 1243 National City Boulevard, National City, CA 91950, las reuniones están abiertas al público. Agendas y Material: Las Agendas y el Paquete de Agenda para los temas enumerados están disponibles en el sitio web de la Ciudad y se distribuyen al Concejo Municipal no menos de 72 horas antes de la Reunión del Concejo Municipal. Regístrese para recibir notificaciones electrónicas cuando se publiquen artículos. Participación pública: Se fomenta de varias maneras como se describe a continuación. Los miembros del público pueden asistir a la Reunión del Concejo Municipal en persona, ver la Reunión del Concejo Municipal a través de la transmisión web en vivo o participar de forma remota a través de Zoom. Las grabaciones de las reuniones están archivadas y disponibles para su visualización en el sitio web de la Ciudad. Comentario Público: Las personas que deseen dirigirse al Concejo Municipal sobre asuntos que no están en la agenda pueden hacerlo bajo Comentarios públicos. Quienes deseen hacer uso de la palabra sobre los temas del programa podrán hacerlo cuando se esté examinando el tema. Por favor, envíe una solicitud del orador al Secretario de la Ciudad antes de la reunión o inmediatamente después del anuncio del artículo. Todos los comentarios estarán limitados a tres (3) minutos. El Presidente tendrá la autoridad para reducir el tiempo asignado para dar cabida a un gran número de oradores. (Política del Concejo Municipal 104) Si desea enviar comentarios por escrito, envíe un correo electrónico a la Oficina del Secretario de la Ciudad al menos 2 horas antes de la Reunión del Consejo Municipal para dar tiempo a la distribución al Consejo Municipal. Servicios de interpretación en español: Los servicios de interpretación en español están disponibles, comuníquese con el Secretario de la Ciudad antes del inicio de la reunión para obtener ayuda. Título II de la Ley de Discapacidades Americanas: En cumplimiento con la Ley de Discapacidades Americanas de 1990, las personas con discapacidad pueden solicitar una agenda en formatos alternativos apropiados según lo requerido por el Título II. Cualquier persona con una discapacidad que requiera un modificación o adaptación para participar en una reunión debe dirigir dicha solicitud a la Oficina del Secretario de la Ciudad (619) 336 -4228 al menos 24 horas antes de la reunión. AGENDA Consolidated Regular Meeting Tuesday, December 6, 2022, 6:00 p.m. City Council Chamber - 1243 National City Boulevard National City, CA Pages 1.CALL TO ORDER 2.ROLL CALL 3.PLEDGE OF ALLEGIANCE TO THE FLAG 4.PUBLIC COMMENT In accordance with State law, an item not scheduled on the agenda may be brought forward by the general public for comment; however, the City Council will not be able to discuss or take action on any issue not included on the agenda. Speakers will have up to three (3) minutes. 5.PRESENTATION (Limited to Five (5) Minutes each) 5.1 Introduction of New City Employees 7 6.REGIONAL BOARDS AND COMMITTEE REPORTS (Limited to Five (5) Minutes each) 7.CONSENT CALENDAR The Consent Calendar may be enacted in one motion by the City Council with a Roll Call Vote without discussion unless a Councilmember, a member of the Public, or the City Manager request an item be removed for discussion. Items removed from the Consent Calendar will be considered immediately following the adoption of the Calendar. 7.1 Approval of Reading by Title Only and Waiver of Reading in Full of Ordinance on this Agenda Motion of the City Council of the City of National City, California, 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. 7.2 Approve the Local Appointments List – Maddy Act Requirement 8 Recommendation: Approval of the Local Appointments List for 2023 and Authorize the City Clerk to post the list at City Hall. 7.3 2023 Office of Traffic Safety (OTS) Selective Traffic Enforcement Program (STEP) Grant 14 Recommendation: Adopt the Resolution entitled, “Resolution of the City Council of the City of National City, California, Authorizing the Acceptance of the 2023 Office of Traffic Safety Selective Traffic Enforcement Program Grant and Authorizing the City Manager to Execute the Grant Agreement.” 7.4 Development Impact Fees Annual Report Fiscal Year 2021-22 37 Recommendation: Accept and file the report. 7.5 Redevelopment Obligations Payment Schedule for Fiscal Year 2023-24 (ROPS 23-24) and associated administrative budget (SUCCESSOR AGENCY) 48 Recommendation: Adopt the resolution approving ROPS 23-24 and the associated administrative budget and authorizing them to be submitted to the Countywide Redevelopment Successor Agency Oversight Board. 7.6 SANDAG Smart Growth Incentive Program Grant Application for Planning Cycle 5 Funding 59 Recommendation: Adopt a Resolution Entitled, "Resolution of the City Council of the City of National City, California, ratifying the submission of an application to San Diego Association of Governments (SANDAG) and ratifying an agreement with SANDAG and establishing fund appropriations and a corresponding revenue budget for the Smart Growth Incentive Program (SGIP) funds in the amount of $294,477 for work performed on the Focused General Plan Update general tasks, Community engagement, Land Use Element, Mobility Element, Housing Element, Safety Element, PEIR, Climate Action Plan Update, and Spanish translation services.” 7.7 Second Amendment to Agreement with National City Electric 87 Recommendation: Page 2 of 623 Adopt a Resolution Entitled, "Resolution of the City Council of the City of National City, California, authorizing the Mayor to approve a Second Amendment to the Agreement with National City Electric increasing the not to- exceed amount by $50,000 for a total Agreement amount of $150,000.” 7.8 Public Agency Retirement Services (PARS) Agreement 92 Recommendation: Approve the Resolution named below authorizing the Mayor to sign the agreement. Resolution of the City Council of the City of National City, California, Authorizing the Mayor to Execute the Agreement between the City of National City and Phase II Systems d.b.a. Public Agency Retirement Services, for Comprehensive Trust Administration Services 7.9 Adopt a Resolution accepting and approving the recordation of a Deed Restriction with the State of California, for El Toyon Park Improvements. 111 Recommendation: Adopt a Resolution Entitled, Resolution of the City Council of the City of National City, California, 1) accepting and approving the recordation of a Deed Restriction with the State of California, by and through the California Department of Parks and Recreation, for El Toyon Park Improvements – Prop 68 – SPP Program; and 2) authorizing the City Manager to execute said Deed Restriction. 7.10 Adopt a Resolution accepting and approving the recordation of a Deed Restriction with the State of California, for Kimball Park Playground Improvements. 133 Recommendation: Adopt a Resolution Entitled, Resolution of the City Council of the City of National City, California, 1) accepting and approving the recordation of a Deed Restriction with the State of California, by and through the California Department of Parks and Recreation, for Kimball Park Playground Improvements – Prop 68 – Per Capita Program; and 2) authorizing the City Manager to execute said Deed Restriction. 7.11 Project close-out and Notice of Completion for the National City Boulevard Bikeway Project, CIP No. 19-18 160 Recommendation: Adopt a Resolution Entitled, "Resolution of the City Council of the City of National City, California, 1) Accepting the work performed by Eagle Paving, Inc. for the National City Boulevard Bikeway Project, CIP No. 19-18; 2) approving the final contract amount of $714,242.39; 3) ratifying the release of retention in the amount of $35,300.17; and 4) ratifying the signing of the Notice of Completion for the project.” 7.12 Accept Bid Received on November 10, 2022, and Award a Contract to SWCS 169 Page 3 of 623 Inc. for the Police Pistol Range HVAC and Safety Improvements CIP No. 20- 05. Recommendation: Adopt a Resolution Entitled, "Resolution of the City Council of the City of National City, California, 1) rejecting bid received on September 8, 2022 for the Police Pistol Range Safety Improvements; 2) accepting bids received on November 10, 2022; 3) awarding a contract to SWCS Inc. in the not-to-exceed amount of $624,111 for the Police Pistol Range HVAC and Safety Improvements CIP No. 20-05; 4) authorizing a 15% contingency in the amount of $93,617 for any unforeseen changes; and 5) authorizing the Mayor to execute the contract. 7.13 Investment Report for the quarter ended September 30, 2022.182 7.14 Warrant Register #16 for the period of 10/14/22 through 10/20/22 in the amount of $2,081,927.31 212 Recommendation: Ratify Warrants Totaling $2,081,927.31 7.15 Warrant Register #17 for the period of 10/21/22 through 10/27/22 in the amount of $1,036,673.44 216 Recommendation: Ratify Warrants Totaling $1,036,673.44 8.PUBLIC HEARING The following item(s) have been advertised as public hearing(s) as required by law. 8.1 Public hearing and Adoption of an Ordinance of the City Council of the City of National City, California, amending Title 9 of the National City Municipal Code by adding Chapter 9.64 pertaining to Mobilehome Park Rent Stabilization. 219 Recommendation: Conduct the public hearing and consider the ordinance for adoption. 9.STAFF REPORTS 9.1 Permanent Local Housing Allocation (PLHA) Year Two Funding 239 Recommendation: Adopt a Resolution Entitled, "Resolution of the City Council of the City of National City, California, for Permanent Local Housing Allocation (PLHA) Year Two funding to (1) establish Year Two PLHA budget appropriations and the corresponding revenue budget in the amount of $400,000.06; (2) reallocate $115,989.84 of unused funds from Year One PLHA funding; (3) approve a Spending Plan for said PLHA funding in Fiscal Year 2023; and (4) authorize the Page 4 of 623 City Manager to execute agreements with the Alpha Project for a not-to-exceed amount of $60,000 and the McAlister Institute for a not-to-exceed amount of $440,710.90. for homeless outreach, case management, emergency housing, and other housing services for people experiencing homelessness and those at-risk of becoming homeless.” 9.2 Appropriation of Funds in the amount of $999,996 for the Clean Mobility Options (CMO) Voucher Program for the Free Ride Around National City (FRANC). 246 Recommendation: Adopt a Resolution Entitled, "Resolution of the City Council of the City of National City, California, authorizing the Appropriation of Funds in the amount of $999,996 for the Clean Mobility Options (CMO) Voucher Programs for the Free Ride around National City (FRANC).” 9.3 Amendment of City Council Policy No. 802, “City Support for Special Events, Activities, Programs and Services,” modifying events to the Sponsored and Co- Sponsored List. 249 Recommendation: Adopt the Resolution Entitled, “Resolution of the City Council of the City of National City, California, Authorizing the Amendment of City Council Policy No. 802, “City Support for Special Events, Activities, Programs and Services”. 9.4 Approval of Three (3) Cannabis Business Development Agreements 268 Recommendation: Adopt a Resolution entitled, “Resolution of the City Council of the City of National City, California, Approving the Cannabis Business Development Agreements with Shryne Group, Off the Charts, and Sessions by the Bay.” 9.5 Protocols for Public Meetings for Civil Service Commission 610 Recommendation: Discuss and Direct Staff on Protocol to Use for Future Meetings. 9.6 Verbal Report-Out of Salary and Benefits in the Employment Agreement of the City Attorney as required by the Brown Act. 612 Recommendation: Receive and File. 10.CITY MANAGER’S REPORT 11.ELECTED OFFICIALS REPORT 11.1 Discussion on Policy 105 Request - Councilmember Rios "Formation of Environmental Health and Justice Advisory Committee" Page 5 of 623 Discussion on the merits of the item and staff direction. 12.CITY ATTORNEY REPORT 13.ADJOURNMENT Regular Meeting of the City Council of the City of National City - Tuesday, January 17, 2023 - 6:00 p.m. - Council Chambers - National City, California. Page 6 of 623 Page 7 of 623 AGENDA REPORT Department: City Clerk's Office Prepared by: Shelley Chapel, MMC, Deputy City Clerk Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Approve the Local Appointments List – Maddy Act Requirement RECOMMENDATION: Approval of the Local Appointments List for 2023 and Authorize the City Clerk to post the list at City Hall. BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: California Government Code 54970-54974 requires on or before December 31 of each year, each legislative body shall prepare an appointments list of all regular and ongoing boards, commissions, and committees which are appointed by the legislative body of the local agency. This list shall be known as the Local Appointments List. The Appointments List serves to provide awareness of the opportunities to serve on local regulatory and advisory boards, commissions and committees. Any unscheduled vacancy that may occur during 2023 will be determined a special vacancy and notice shall be posted at City Hall and the City Website pursuant to Section 54973-54974 of the Government Code not earlier than twenty (20) days before and not later than twenty (20) days after the vacancy occurs. Final appointment to the Board/Commission/Committee shall not be made by the legislative body for at least ten (10) working days after the posting of the notice in the Clerk’s Office. Discussion: In compliance with the requirements of Government Code Section 54970, the following Local Appointments List is posted on an annual basis. The List presents all current members of the City Boards/Commissions/Committees and the dates of the terms. Civil Service Commission consists of up to five (5) members who are appointed by the City Council and are required to be a resident of National City. The City Council appoints the members for a term of five (5) years. The Civil Service Commission recommends to the City Council, after a public hearing, the adoption, amendment or repeal of Civil Service Rules and Regulations not in conflict with the Government Code; hears appeals of any person in the classified service relative to any suspension, demotion or dismissal; and makes any Page 8 of 623 investigation concerning the administration of personnel in the municipal service and reports its findings to the City Council and the City Manager. Community and Police Relations Commission consists of eight (8) individuals appointed by the Mayor with the approval of the City Council. Of the eight (8) members, seven (7) shall be voting members, and one (1) shall be non-voting members. Of the seven (7) voting members, five (5) shall be residents of the City of National City, and up to two (2) non- residents. The non-voting member shall be a member of the National City Police Officers’ Association. The term of the members shall be for three (3) years. Board of Library Trustees consists of five (5) members plus and alternate, appointed by the Mayor with the approval of the City Council for a three (3) year term. The Board of Library Trustees coordinates the activities of the City Library; advises the City Librarian on operational policies; approves warrants; and recommends to the City Council the adoption of rules and regulations, as it may deem necessary for the administration and protection of the City Library. The Library Board of Trustees is regulated by Education Code Section 18910 et seq., Ordinance 1062 and Resolution 8210. Parks, Recreation and Senior Citizens Advisory Committee consists of seven (7) members to be appointed by the Mayor with the approval of the City Council, each for a term of three (3) years. The Parks, Recreation and Senior Citizens Advisory Committee acts in an advisory capacity to the City Council in matters of policy and administration of city owned parks and the recreation programs operated within the parks and recreation centers; investigates and reports on related matters as referred by the Council; and submits recommendations to Council on relative subjects which the Committee deems important. Planning Commission consists of seven (7) members appointed by the City Council for a term of four (4) years. The Planning Commissioners are required to be residents of the City. The Planning Commission is appointed to consider land use planning matters. The Commission renders determinations and makes recommendations to the City Council on a variety of land use matters, including changes to the City’s General Plan, Specific Plans and Land Use Code. They also provide discretionary review for land use matters such as Conditional Use Permits, Variances, and Subdivisions. The Planning Commission also serves on the Housing Advisory Committee and adds two (2) additional members, one (1) of which may be a non-resident. This additional committee provides input on housing related matters such as the Housing Element and the Focus General Plan Update and plays a role in moving forward housing programs and projects. Port Commission consists of one (1) member appointed by the City Council for a four (4) year term to represent the interest of the City of National City. Public Art Committee consists of five (5) members plus an alternate, of the Public Art Committee are appointed by the Mayor with the approval of the City Council, to serve three (3) year terms. The Public Art Committee acts in an advisory capacity to the City Council in matters of policy and selection of public art installed anywhere in the City. Sweetwater Authority consists of two (2) members appointed by the Mayor with the approval of the City Council for a four (4) year term to represent the interest of the City of National City. Traffic Safety Committee consists five (5) members of the Traffic Safety Committee are appointed by the Mayor with the approval of the City Council, for three (3) year terms. The Page 9 of 623 Traffic Safety Committee reviews and makes recommendations on matters related to vehicular and pedestrian safety within the City of National City. As directed by the City Council, the Traffic Safety Committee conducts investigations and reports on safety issues requested by appropriate public agencies and responsible private citizens / private organizations. FINANCIAL STATEMENT: Not Applicable RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Communication and Outreach ENVIRONMENTAL REVIEW: This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBITS: Exhibit A – Local Appointment List Page 10 of 623 CITY OF NATIONAL CITY LOCAL APPOINTMENTS LIST In compliance with the requirements of Government Code Section 54970, the following Local Appointments List is posted on an annual basis. The List presents all current members of the City Boards/Commissions/Committees and the dates of the terms. CIVIL SERVICE COMMISSION* Position Member Term Appointed Term Expires Chair Paul Wapnowski 5-years 11/20/2018 09/30/2023 Vice-Chair Rafael Courtney 5-years 09/30/2020 09/30/2025 Commissioner Leslie Coyote 5-years 09/30/2019 09/30/2024 Commissioner Thomas Luna 5-years 08/03/2021 09/30/2024 Commissioner Javier Alvarado 5-years 05/03/2022 09/30/2022 COMMUNITY AND POLICE RELATIONS COMMITTEE* Position Member Term Appointed Term Expires Chair Michael Lesley 3-years 03/31/2020 03/31/2023 Vice-Chair Daniel Orth 3-years 03/15/2022 03/31/2025 Member Zachary Francisco-Gomez 3-years 03/15/2022 03/31/2023 Member Emiliano Nunez 3-years 04/06/2021 03/31/2024 Member Marianne Delatorre 3-years 04/06/2021 03/31/2024 Member Andy Y. Sanchez 3-years 04/06/2021 03/31/2024 Member William Phillips 3-years 03/15/2022 03/31/2025 BOARD OF LIBRARY TRUSTEES* Position Member Term Appointed Term Expires President Margaret Godshalk 3-years 12/4/2018 9/30/2023 Secretary H. Bradley Bang 3-years 09/21/2021 09/30/2024 Member-Trustee Coyote Moon 3-years 09/21/2021 09/30/2024 Member-Trustee Anzueth G. Zambrano 3-years 09/21/2021 09/30/2024 Member-Trustee Vacant 3-years 09/30/2023 Member-Trustee Vacant (Alternate) 3-years 09/30/2023 Page 11 of 623 PARK, RECREATION & SENIOR CITIZENS ADVISORY COMMITTE Position Member Term Appointed Term Expires Chair Nora McMains 3-years 09/30/2019 09/30/2025 Member Florfina Arce 3-years 09/21/2021 09/30/2024 Member Liliana Armenta 3-years 02/16/2021 01/1/2023 Member Jennelyn Luna 3-years 09/20/2022 09/30/2023 Member Joseph Crawford 3-years 12/17/2019 09/30/2023 Member Rueben Felizardo 3-years 09/21/2021 09/30/2024 Member Ignacio Navarro Jr. 3-years 02/16/2021 01/01/2023 PLANNING COMMISSION* Position Member Term Appointed Term Expires Chair Ditas Yamane 4-years 03/03/2015 03/31/2023 Commissioner Ricardo Sanchez 4-years 07/05/2020 09/30/2024 Commissioner Luis Natividad 4-years 05/07/2019 03/31/2023 Commissioner Randi Marie Castle 4-years 03/15/2022 03/31/2026 Commissioner William J. Sendt 4-years 04/05/2016 03/31/2024 Commissioner Claudia E. Valenzuela 4-years 04/20/2021 03/31/2025 Commissioner Richard Martin Miller 4-years 03/15/2022 03/31/2026 PORT COMMISSION Position Member Term Appointed Term Expires Commissioner Sandy Naranjo 4-years 12/02/2020 12/02/2024 PUBLIC ART COMMITTEE Position Member Term Appointed Term Expires Chair William A. Virchis 3-year 09/30/2019 09/30/2023 Member Jose A. Lopez 3-year 02/16/2021 09/30/2024 Member Ryan Johnson 3-year 09/20/2023 09/30/2025 Member Jacqueline Schliapnik 3-year 10/20/2020 09/30/2025 Member Vacant (Alternate) 3-year 09/30/2024 Member Charles Reilly 3-year 02/01/2022 09/30/2024 Page 12 of 623 SWEETWATER AUTHORITY Position Member Term Appointed Term Expires Commissioner Mona Rios 4-years 01/19/2021 12/31/2025 TRAFFIC SAFETY COMMITTEE Position Member Term Appointed Term Expires Chair Ryan Whipple 3-years 05/06/2014 09/30/2023 Member Kelly Piper 3-years 09/20/2022 09/30/2025 Member Christopher Coyote 3-years 09/30/2019 099/30/2022 Member Marisa Rosales 3-years 09/21/2021 09/30/2024 Member Cynthia Fuller Quinonez 3-years 09/20/2022 09/30/2025 HOUSING ADVISORY COMMITTEE* Position Member Term Appointed Term Expires Chair Ditas Yamane 4-years 03/03/2015 03/31/2023 Vice-Chair Ricardo Sanchez 4-years 07/05/2020 09/30/2024 Member Luis Natividad 4-years 05/07/2019 03/31/2023 Member Damian Alexander Roman 4-years 01/19/2021 03/31/2023 Member William J. Sendt 4-years 04/05/2016 03/31/2024 Member Claudia E. Valenzuela 4-years 04/20/2021 03/31/2025 Member Richard Martin Miller 4-years 03/15/2022 03/31/2026 Member Mayra A. Valadez 4-years 03/15/2022 03/31/2026 Member Randi Marie Castle 4-years 03/15/2022 03/31/2026 *Individual appointed to this Board/Commission/Committee is subject to the Fair Political Practices Commission regulations and must file a Statement of Economic Interest within 30 days of appointment. Page 13 of 623 AGENDA REPORT Department: Police Department Prepared by: Damian Ballardo Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: 2023 Office of Traffic Safety (OTS) Selective Traffic Enforcement Program (STEP) Grant RECOMMENDATION: Adopt the Resolution entitled, “Resolution of the City Council of the City of National City, California, Authorizing the Acceptance of the 2023 Office of Traffic Safety Selective Traffic Enforcement Program Grant and Authorizing the City Manager to Execute the Grant Agreement.” BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: On October 1st, 2022 the National City Police Department was approved to receive $150.000.00 in grant funds from the Office of Traffic Safety (OTS). The grant was approved for a one-year period beginning October 1st 2022. This award is based upon a grant proposal submitted to the Office of Traffic Safety for the purpose of reducing the number of persons killed or injured in traffic collisions and alcohol involved collisions; to reduce fatal and injury hit and run collisions; to reduce the amount of motorcyclists killed or injured; and to reduce fatal and injury collisions at intersections where unsafe turning movements and unsafe speeds were a factor. The grant funds allocated to accomplish these goals will be used to fund operations such as DUI/DL checkpoints, DUI saturation patrols, and enforcement operations regarding speed, red light violators, distracted drivers, and motorcycle enforcement within the city limits of the City of National City. There is also funding allowing for Traffic Safety presentations, and the purchase of one new police motorcycle. FINANCIAL STATEMENT: 290-11679-3498 (Other Federal Grants) $150,000 290-411-679 (Overtime &related accounts) -$150,000 No matching funds required RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Public Safety ENVIRONMENTAL REVIEW: Not Applicable PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. Page 14 of 623 ORDINANCE: Not Applicable EXHIBITS: Exhibit A - Agreement Exhibit B - Resolution Page 15 of 623 Page 16 of 623 Page 17 of 623 Page 18 of 623 Page 19 of 623 Page 20 of 623 Page 21 of 623 Page 22 of 623 Page 23 of 623 Page 24 of 623 Page 25 of 623 Page 26 of 623 Page 27 of 623 Page 28 of 623 Page 29 of 623 Page 30 of 623 Page 31 of 623 Page 32 of 623 Page 33 of 623 Page 34 of 623 Page 35 of 623 RESOLUTION NO. 2022 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, AUTHORIZING THE ACCEPTANCE OF THE 2023 OFFICE OF TRAFFIC SAFETY SELECTIVE TRAFFIC ENFORCEMENT PROGRAM GRANT AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE GRANT AGREEMENT WHEREAS, on October 1, 2022 the National City Police Department was approved to receive $150,000 in grant funds from the Office of Traffic Safety; and WHEREAS, the purpose of the grant is to implement programs to reduce the number of persons killed or injured in traffic collisions and alcohol related accidents; and WHEREAS, the grant funds will be used to fund operations such as DUI/DL checkpoints, DUI saturation patrols and other enforcement operations relating to speed and red light violations. 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 of the City of National City hereby authorizes the acceptance of a grant award in the amount of $150,000 from the Office of Traffic Safety for the Selective Traffic Enforcement Program (STEP) grant 2023 to conduct DUI and traffic related enforcement operations. Section 2: That the City Council hereby authorizes the City Manager to execute the Grant Agreement, attached to the Agenda Report as Attachment A. Section 3: That the City Council authorizes the establishment of fund appropriations and corresponding revenue budget. Section 4: 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 6th day of December, 2022. Alejandra Sotelo-Solis, Mayor ATTEST: Luz Molina, City Clerk APPROVED AS TO FORM: _____________________________ Barry J. Schultz, Interim City Attorney Page 36 of 623 AGENDA REPORT Department: Finance Prepared by: Janel Pehau, Financial Analyst Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Development Impact Fees Annual Report Fiscal Year 2021-22 RECOMMENDATION: Accept and file the report. BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: The City requires the payment of development impact fees on new development as authorized by State of California Government Code Section 66000 et seq., which is known as the Mitigation Fee Act. The Mitigation Fee Act requires that an annual report and five year reports be prepared regarding the collection and use of the DIF fees. Fees collected must be spent in a timely manner. If fees are not spent within a period of 5 years, the report must provide an expenditure plan that justifies keeping the revenues for a longer period. The attached report provides revenue and expenditure information since the inception of the DIFs, fulfills the annual reporting requirements, and addresses future spending plans for the unspent balances. The development impact fees for Parks and Recreation, Police, Fire, and Library were established in 2005 and have not been updated since that time. The transportation fees were established in 2008 based on a fee study conducted by the San Diego Association of Governments (SANDAG) and have been adjusted annually for inflation based on direction from SANDAG. These impact fees need to be reexamined to ensure that they continue to reflect the capital facilities impacts of new development as the general plan evolves and the development of the City progresses. Staff will return to the City Council with a proposal for engaging a consultant to assist the City with a fee study after adoption of the focused general plan update. FINANCIAL STATEMENT: Not applicable RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Not Applicable Page 37 of 623 ENVIRONMENTAL REVIEW: This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065. PUBLIC NOTIFICATION: The Development Impact Fees Report was posted on the City’s website on or before November 21, 2022, meeting the Government Code Section 66006(b)(2) requirement that it be available to the public at least 15 days ahead of the December 6, 2022, City Council meeting at which it will be considered. The Age nda Report was posted not less than 72 hours before the meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBIT: Exhibit A - Development Impact Fees Annual Report for Fiscal Year 2021-22 Page 38 of 623 Development Impact Fees Annual Report for Fiscal Year 2021-22 BACKGROUND In 2005, based on a study completed for the City by MAXIMUS, Inc. and Tischler & Associates, the City Council adopted Resolution No. 2005-17, which established fees to be charged on new development in order to defray all or a portion of the cost of public facilities related to the development project. These fees are known as development impact fees (DIFs) and are permitted pursuant to the California Government Code beginning with Section 66000 (known as the Mitigation Fee Act). Pursuant to that resolution, the City collects impact fees for Police, Fire, Library, and Park facilities. While fees may be adjusted periodically to reflect construction cost increases, the City has not changed its fees since they were first adopted in 2005. The fees for these four categories are as shown in Table A below. In 2008, the City Council adopted Ordinance 2310, which added Section 4.52 to the National City Municipal Code (NCMC) to establish a transportation development impact fee (TDIF). This fee was adopted to comply with the San Diego Association of Government’s (SANDAG’s) Regional Transportation Congestion Improvement Program (RTCIP) that requires the City to charge the fee to maintain eligibility for TransNet sales tax funding for transportation projects. SANDAG conducted a region-wide study which serves as the basis for the fee that was initially established at $2,000 per new residential unit. It is updated annually in accordance with direction provided by SANDAG. As of July 1, 2022, the TDIF is $2,688.21 per residential unit. No fee is collected for non-residential development. While such a fee is provided for in the NCMC, its imposition has been suspended per section 4.52.090. REPORTING Government Code Section 66006 requires that an annual report and five year reports be prepared regarding the collection and use of the DIF fees. Fees collected must be spent in a timely manner. If fees are not spent within a period of 5 years, the report must provide an expenditure plan that justifies keeping revenues for a longer period. This report provides revenue and expenditure information since the inception of the DIFs, fulfills the annual reporting requirements, and addresses future spending plans for the unspent balances. Page 39 of 623 TABLE A: DEVELOPMENT IMPACT FEE SCHEDULE (non-transportation) Facility Type Parks & Recreation Library Fire/EMS Police Total Residential Per Housing Unit Single Family $858 $172 $126 $318 $1,474 Multi-Family (4 or greater) $692 $139 $102 $257 $1,190 Mobile Home/Other $849 $139 $124 $315 $1,427 Non-Residential Per 1,000 Square Feet/Per Room for Hotel Com/Shop Ctr 25,000 SF or less $1,009 $2,549 $3,558 Com/Shop Ctr 25,001 SF - 50,000 SF $809 $2,043 $2,852 Com/Shop Ctr 50,001 SF - 100,000 SF $652 $1,649 $2,301 Com/Shop Ctr 100,001 SF - 200,000 SF $530 $1,340 $1,870 General Office 10,000 SF or less $448 $1,133 $1,581 General Office 10,001 SF - 25,000 SF $400 $1,012 $1,412 General Office 25,001 SF - 50,000 SF $367 $929 $1,296 General Office 50,001 SF - 100,000 SF $332 $840 $1,172 Business Park $282 $713 $995 Industrial Park $195 $493 $688 Warehousing $113 $286 $399 Manufacturing $144 $366 $510 Lodging $107 $270 $377 HISTORICAL SUMMARY Over the last eighteen years, for the four facility types shown in Table A above, the City has collected a combined total of $3,911,174 in development impact fees of which $2,550,879 has been spent. A summary of the total amount collected and spent by fiscal year is shown in Table B below followed by a graph (see Figure 1) that summarizes the revenues and expenditures by facility type. Tables C through F below break out the revenues and expenditures by year for those four facility types. The revenues and expenditures by year for the TDIF are shown in Table G below. Ending balances for fiscal year 2021-22 are unaudited. Page 40 of 623 TABLE B: NATIONAL CITY DEVELOPMENT IMPACT FEES (non-transportation) - SUMMARY SUMMARY Beginning Balance Revenue Expenditures Ending Balance % Spent FY 2004-05 0.00 174,369.00 0.00 174,369.00 FY 2005-06 174,369.00 154,490.36 0.00 328,859.36 FY 2006-07 328,859.36 190,084.36 191,033.99 327,909.73 FY 2007-08 327,909.73 148,834.00 0.00 476,743.73 FY 2008-09 476,743.73 139,018.00 0.00 615,761.73 FY 2009-10 615,761.73 633,499.80 90,000.00 1,159,261.53 FY 2010-11 1,159,261.53 59,712.20 0.00 1,218,973.73 FY 2011-12 1,218,973.73 141,374.00 139,299.05 1,221,048.68 FY 2012-13 1,221,048.68 94,827.00 193,406.38 1,122,469.30 FY 2013-14 1,122,469.30 56,444.00 39,759.95 1,139,153.35 FY 2014-15 1,139,153.35 310,408.00 7,386.00 1,442,175.35 FY 2015-16 1,442,175.35 52,457.20 1,105,060.00 389,572.55 FY 2016-17 389,572.55 188,141.00 238,174.81 339,538.74 FY 2017-18 339,538.74 426,242.80 294,289.04 471,492.50 FY 2018-19 471,492.50 85,196.00 54,223.00 502,465.50 FY 2019-20 502,465.50 617,415.00 198,247.00 921,633.50 FY 2020-21 921,633.50 130,566.00 0.00 1,052,199.50 FY 2021-22 1,052,199.50 308,095.25 0.00 1,360,294.75 Total 3,911,173.97 2,550,879.22 1,360,294.75 65.2% Total Revenue Total Expenditures $- $500,000 $1,000,000 $1,500,000 $2,000,000 POLICE FIRE PARKS LIBRARY Total Revenue $1,282,885 $522,773 $1,710,973 $394,544 Total Expenditures $1,127,008 $285,292 $928,579 $210,000 FIGURE 1 Impact Fees by Type FY2005 -FY2022 Page 41 of 623 FEE METHODOLOGY There are three (3) methods that were used to determine the fees collected by the City for the Police, Fire, Parks and Library facilities. Each method requires that the spending of funds received be restricted as follows: 1) Plan based Impact fees – used for new facilities that will be needed due to the increase in development. 2) Cost recovery Impact fees – used to pay for existing facilities where the new development benefits from the remaining capacity and useful life of the facilities. 3) Incremental Expansion Impact fees – used for expanding existing facilities to serve new development Fees for Police, Fire, Library, and Parks facilities were calculated using one or more of the methods described above depending upon the purpose of the fees. STATUS OF THE FEE PROGRAM This section, in the pages that follow, describes by facility type the purpose for the fees, provides a history of revenues and expenditures since inception, describes how the money has been spent, and discusses the plans for future spending. Page 42 of 623 POLICE IMPACT FEES All three (3) methods were used to calculate Police impact fees. The purpose for the fees as determined in 2005 was to accumulate funding to assist with the cost of a new police substation in conjunction with a new fire station, recover a portion of the costs associated with the police headquarters building and pay for the incremental addition of police vehicles. Revenue and expenditures are detailed below in Table C: TABLE C: NATIONAL CITY POLICE DEVELOPMENT IMPACT FEES POLICE Beginning Balance Revenue Expenditures Ending Balance % Spent FY 2004-05 0.00 37,620.75 0.00 37,620.75 100% FY 2005-06 37,620.75 35,110.86 0.00 72,731.61 100% FY 2006-07 72,731.61 90,523.08 0.00 163,254.69 100% FY 2007-08 163,254.69 64,753.00 0.00 228,007.69 100% FY 2008-09 228,007.69 60,274.00 0.00 288,281.69 100% FY 2009-10 288,281.69 179,919.00 0.00 468,200.69 100% FY 2010-11 468,200.69 25,025.00 0.00 493,225.69 100% FY 2011-12 493,225.69 49,968.00 115,842.78 427,350.91 100% FY 2012-13 427,350.91 30,743.00 99,433.87 358,660.04 100% FY 2013-14 358,660.04 30,080.00 19,261.68 369,478.36 100% FY 2014-15 369,478.36 76,931.00 3,086.09 443,323.27 100% FY 2015-16 443,323.27 33,240.20 407,043.05 69,520.42 100% FY 2016-17 69,520.42 70,196.00 1,146.95 138,569.47 100% FY 2017-18 138,569.47 162,282.80 282,946.90 17,905.37 100% FY 2018-19 17,905.37 25,979.00 0.00 43,884.37 100% FY 2019-20 43,884.37 191,468.00 198,247.00 37,105.37 81% FY 2020-21 37,105.37 36,899.00 0.00 74,004.37 0% FY 2021-22 74,004.37 81,871.86 0.00 155,876.23 0% Total 1,282,884.55 1,127,008.32 155,876.23 87.8% Revenue received from police impact fees since fiscal year 2004-05 totals $1,282,885 of which $1,127,008 has been spent. The current balance in the account is $155,876, all of which comes from fees collected within the last three fiscal years. The new substation has been on hold. The expectation in 2005 was that bonds would be issued by the City to build a new combination fire station and police substation, but a subsequent downturn in economic conditions dictated that those plans be delayed. Instead, the focus has been on improvements to the Police Department headquarters building and parking structure and the purchase of police vehicles to meet increased service demands. The City will continue to apply the revenues received in this account to similar purposes. Page 43 of 623 FIRE IMPACT FEES The plan based and cost recovery methods were used to calculate Fire impact fees. The purpose of the fees was to assist with the funding of the relocation and expansion of Station 34, assist with the cost of a future new fire station and associated apparatus, and because of its citywide benefit, recover a portion of the capital costs related to Station 31. Revenue and expenditure details follow: TABLE D: NATIONAL CITY FIRE DEVELOPMENT IMPACT FEES FIRE Beginning Balance Revenue Expenditures Ending Balance % Spent FY 2004-05 0.00 14,933.75 0.00 14,933.75 100% FY 2005-06 14,933.75 13,906.50 0.00 28,840.25 100% FY 2006-07 28,840.25 35,910.28 0.00 64,750.53 100% FY 2007-08 64,750.53 25,663.00 0.00 90,413.53 100% FY 2008-09 90,413.53 23,867.00 0.00 114,280.53 100% FY 2009-10 114,280.53 71,297.00 90,000.00 95,577.53 100% FY 2010-11 95,577.53 13,464.00 0.00 109,041.53 100% FY 2011-12 109,041.53 19,085.00 15,620.02 112,506.51 100% FY 2012-13 112,506.51 23,271.00 89,678.76 46,098.75 100% FY 2013-14 46,098.75 11,909.00 0.00 58,007.75 100% FY 2014-15 58,007.75 30,514.00 0.00 88,521.75 100% FY 2015-16 88,521.75 13,037.00 29,561.73 71,997.02 11.3% FY 2016-17 71,997.02 27,806.00 6,208.27 93,594.75 0.0% FY 2017-18 93,594.75 63,724.00 0.00 157,318.75 0.0% FY 2018-19 157,318.75 10,293.00 54,223.00 113,388.75 0.0% FY 2019-20 113,388.75 76,997.00 0.00 190,385.75 0.0% FY 2020-21 190,385.75 14,628.00 0.00 205,013.75 0.0% FY 2021-22 205,013.75 32,467.17 0.00 237,480.92 0.0% Total 522,772.70 285,291.78 237,480.92 54.6% Revenue received from fire impact fees totals $522,773 of which $285,292 has been spent on items including a fire hydrant, fire apparatus, and the acquisition of a trailer that was being leased for the Station 33 Squad Program that was set up in El Toyon Park to provide faster response times in the north-eastern portion of the City. The current balance in the account is $237,481, of which $198,109 is from fees paid over the last five fiscal years and $39,372 from the two years prior. The plans for a new fire station as envisioned in 2005 have been on hold. The expectation then was that bonds would be issued by the City to build a new combination fire station and police substation, but a subsequent downturn in economic conditions dictated that those plans be put on hold. The City’s fiscal year 2022-23 budget allocates $100,000 in Fire DIF funds towards the design of a new multi-purpose facility in El Toyon Park, to include a fire station, community center and library. Accumulated and future revenues from Development Impact Fees will provide a small portion of the funding for this future facility. Page 44 of 623 PARKS AND RECREATION IMPACT FEES The incremental expansion method was used to calculate Parks and Recreation impact fees. The purpose of the fees was to pay for new improvements in existing parks and the expansion of recreation centers to provide additional capacity to accommodate new development. The funds cannot be used for replacement or maintenance of equipment or facilities. Revenue and expenditure details are in Table E below: TABLE E: NATIONAL CITY PARKS AND RECREATION DEVELOPMENT IMPACT FEES PARKS Beginning Balance Revenue Expenditures Ending Balance % Spent FY 2004-05 0.00 101,454.75 0.00 101,454.75 100% FY 2005-06 101,454.75 87,864.00 0.00 189,318.75 100% FY 2006-07 189,318.75 24,302.00 191,033.99 22,586.76 100% FY 2007-08 22,586.76 48,658.00 0.00 71,244.76 100% FY 2008-09 71,244.76 45,714.00 0.00 116,958.76 100% FY 2009-10 116,958.76 317,848.80 0.00 434,807.56 100% FY 2010-11 434,807.56 6,363.20 0.00 441,170.76 100% FY 2011-12 441,170.76 60,230.00 7,836.25 493,564.51 100% FY 2012-13 493,564.51 33,990.00 4,293.75 523,260.76 100% FY 2013-14 523,260.76 12,040.00 20,498.27 514,802.49 100% FY 2014-15 514,802.49 169,014.00 4,299.91 679,516.58 100% FY 2015-16 679,516.58 5,148.00 458,455.22 226,209.36 100% FY 2016-17 226,209.36 73,102.00 230,819.59 68,491.77 21.8% FY 2017-18 68,491.77 166,744.00 11,342.14 223,893.63 0.0% FY 2018-19 223,893.63 40,744.00 0.00 264,637.63 0.0% FY 2019-20 264,637.63 290,584.00 0.00 555,221.63 0.0% FY 2020-21 555,221.63 65,822.00 0.00 621,043.63 0.0% FY 2021-22 621,043.63 161,349.75 0.00 782,393.38 0.0% Total 1,710,972.50 928,579.12 782,393.38 54.3% Since 2005 revenue received from park impact fees totals $1,710,973 of which $928,579 has been spent on improvements in El Toyon and Kimball parks. The current balance in the account is $782,393 of which $725,244 was received during the last five fiscal years and $57,150 in the one year prior. The fiscal year 2022-23 budget allocates $100,000 in Parks DIF funds towards the design of a multi-purpose facility at El Toyon Park to include a fire station, community center and library. The remainder of the funds in this account, along with future receipts, will be used towards the construction of the multi-purpose facility and to make other improvements in the City’s parks. The funds are expected to be spent over the next 5 years. Page 45 of 623 LIBRARY IMPACT FEES The plan based method was used to calculate Library impact fees. The purpose of the fees was to cover a portion of the costs of the planned construction of a replacement library that was to be twice the size of the then existing library. Outside sources paid for 65% of the construction costs, leaving the City to cover the remaining share for which the City issued general obligation bonds in the amount of $5,970,000. Revenue and expenditure details are as follows in Table F: TABLE F: NATIONAL CITY LIBRARY DEVELOPMENT IMPACT FEES LIBRARY Beginning Balance Revenue Expenditures Ending Balance % Spent FY 2004-05 0.00 20,359.75 0.00 20,359.75 100% FY 2005-06 20,359.75 17,609.00 0.00 37,968.75 100% FY 2006-07 37,968.75 39,349.00 0.00 77,317.75 100% FY 2007-08 77,317.75 9,760.00 0.00 87,077.75 100% FY 2008-09 87,077.75 9,163.00 0.00 96,240.75 100% FY 2009-10 96,240.75 64,435.00 0.00 160,675.75 100% FY 2010-11 160,675.75 14,860.00 0.00 175,535.75 100% FY 2011-12 175,535.75 12,091.00 0.00 187,626.75 100% FY 2012-13 187,626.75 6,823.00 0.00 194,449.75 100% FY 2013-14 194,449.75 2,415.00 0.00 196,864.75 100% FY 2014-15 196,864.75 33,949.00 0.00 230,813.75 38.7% FY 2015-16 230,813.75 1,032.00 210,000.00 21,845.75 0.0% FY 2016-17 21,845.75 17,037.00 0.00 38,882.75 0.0% FY 2017-18 38,882.75 33,492.00 0.00 72,374.75 0.0% FY 2018-19 72,374.75 8,180.00 0.00 80,554.75 0.0% FY 2019-20 80,554.75 58,366.00 0.00 138,920.75 0.0% FY 2020-21 138,920.75 13,217.00 0.00 152,137.75 0.0% FY 2021-22 152,137.75 32,406.47 0.00 184,544.22 0.0% Total 394,544.22 210,000.00 184,544.22 53.2% Revenue received since inception from Library impact fees totals $394,544 of which $210,000 has been spent on a portion of the costs to upgrade the National City Library. The current balance in the account is $184,544 of which $145,661 was received during the last five fiscal years and $38,883 over the three years prior. The upgrades included a new radio-frequency identification book delivery system, additional bookshelves and other enhancements The City is evaluating projects, such as the multi-purpose facility at El Toyon Park, that will enhance the Library’s ability to accommodate a growing number of users over the next five years, but as an alternative, will also be considering applying the revenues collected towards the annual debt service payments on the bonds. Because the bonds were issued as voter approved general obligation bonds, applying the Library DIF revenues to the debt service would reduce the amount of property tax revenues to be collected from property owners in National City. Page 46 of 623 TRANSPORTATION IMPACT FEES The purpose of the transportation impact fee is to defray the costs of constructing planned transportation facilities to accommodate increased traffic generated by future development and on improvements that expand capacity on the Regional Arterial System (RAS) as required by the TransNet Regional Transportation Congestion Improvement Program (RTCIP). Eligible projects include such things as road widening, roadway extensions, turning lanes, traffic signal coordination, freeway to arterial interchange improvements, railroad grade separations, and expanded regional express bus and rail transit service. Revenues and expenditures by fiscal year are shown below in Table G: TABLE G: NATIONAL CITY TRANSPORTATION DEVELOPMENT IMPACT FEES Transportation Beginning Balance Revenue Expenditures Ending Balance % Spent FY 2008-09 0.00 16,000.00 0.00 16,000.00 100% FY 2009-10 16,000.00 359,560.00 0.00 375,560.00 100% FY 2010-11 375,560.00 42,967.78 0.00 418,527.78 100% FY 2011-12 418,527.78 155,777.41 0.00 574,305.19 100% FY 2012-13 574,305.19 106,152.06 0.00 680,457.25 100% FY 2013-14 680,457.25 38,766.64 0.00 719,223.89 100% FY 2014-15 719,223.89 353,481.76 13,278.79 1,059,426.86 100% FY 2015-16 1,059,426.86 12,960.14 722,319.26 350,067.74 100% FY 2016-17 350,067.74 28,145.36 277,680.74 100,532.36 100% FY 2017-18 100,532.36 498,675.62 115,000.00 484,207.98 23% FY 2018-19 484,207.98 154,616.42 101,194.84 537,629.56 0.0% FY 2019-20 537,629.56 1,078,973.70 0.00 1,616,603.26 0.0% FY 2020-21 1,616,603.26 155,409.86 0.00 1,772,013.12 0.0% FY 2021-22 1,772,013.12 228,508.65 0.00 2,000,521.77 0.0% Total 3,229,995.40 1,229,473.63 2,000,521.77 38.1% Revenue received since inception from transportation impact fees totals $3,229,995 of which $1,229,473 has been spent on the widening of Plaza Boulevard. The current balance in the account is $2,000,522, all of which has been received during the last five years. The City’s budget for fiscal year 2022-23 allocates $1,000,000 of the TDIF balance towards the “Mobility Enhancements” project, which includes upgrades and modifications to traffic signals and related infrastructure to enhance mobility and operations. The remaining balance in this fund along with future receipts will be programmed to continue to address mobility efficiency along major transportation corridors and as needs arise in conjunction with new development in National City. Page 47 of 623 AGENDA REPORT Department: Finance Prepared by: Janel Pehau, Financial Analyst Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Redevelopment Obligations Payment Schedule for Fiscal Year 2023-24 (ROPS 23-24) and associated administrative budget (SUCCESSOR AGENCY) RECOMMENDATION: Adopt the resolution approving ROPS 23-24 and the associated administrative budget and authorizing them to be submitted to the Countywide Redevelopment Successor Agency Oversight Board. BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: Background. Effective February 1, 2012, all Redevelopment Agencies in California were dissolved and “Successor Agencies” were established to wind down the affairs of the former redevelopment agencies under the direction of oversight boards. Health and Safety Code Section 34177 requires successor agencies to perform a number of functions, one of which is to prepare a Recognized Obligation Payment Schedule (ROPS) before each fiscal period that details amounts required to be spent and the source of funds for those expenditures. Each successor agency must submit the ROPS to its oversight board for approval, after which i t is forwarded for review and approval to the State Department of Finance, with copies to the County Auditor and Controller and State Controller’s Office. The San Diego County Oversight Board will consider the Agency’s ROPS at its January 19, 2023 meeting. ROPS 23-24 is due to the State Department of Finance (DOF) by February 1, 2023. In addition, successor agencies are required to prepare and submit to the oversight board an administrative budget that details the estimated administrative costs for each upcoming ROPS period. DOF does not review the administrative budget. Even though the ROPS covers an entire fiscal year, the standardized form distributed by DOF requires that obligation payment amounts be assigned to either the “A” portion of the fiscal year (July through December) or the “B” portion of the year (January through June). The assignment of expenses to one half or the other of the fiscal year is designed not to restrict when authorized amounts may be spent during the fiscal year, but to facilitate the distribution of redevelopment property tax trust fund (RPTTF) monies, the primary source of funding for the ROPS. These monies are the equivalent of the tax increment revenues that were previously allocated to the former redevelopment agencies. The County of San Diego maintains a separate RPTTF for each successor agency within the county. RPTTF monies are distributed on June 1 and January 2 by the County Auditor and Controller. The June 1 distribution is for expenditures expected to occur during the “A” portion of the upcoming ROPS cycle, while the January 2 distribution provides cash for the second half (“B” portion) of the cycle. Page 48 of 623 Should changes to the ROPS be necessary after the ROPS has been approved by DOF, each successor agency is allowed to amend it one time per ROPS period. The amendment must be submitted to DOF by October 1, and successor agencies may amend only the amounts requested for payment of approved enforceable obligations that fall within the “B” portion of the year; no new obligations can be created through the amendment process. ROPS 23-24. The proposed Recognized Obligation Payment Schedule for the July 1, 2023 through June 30, 2024 (ROPS 23-24) period for the National City Successor Agency, attached as Exhibit A, totals $4.27 million. Of that amount, $3.81 million is allocated to the first half of the fiscal year and $0.46 million to the second half of the fiscal year. (Note: The ROPS schedules are in the form of the anticipated schedules to be issued by the State Department of Finance. These schedules must be completed on DOF’s website, but were not available in time to meet the agenda formation deadline. Once they are available, staff will enter the amounts shown in Exhibit A.) ROPS 23-24 is the simplest ROPS to date. Previous ROPS provided for obligations related to the Paradise Creek apartments, environmental remediation for the Paradise Creek Park, and environmental monitoring related to certain projects carried out by the former Redevelopment Agency. These obligations have been completed, leaving only debt service, a litigation matter that is expected to be settled soon, and administrative costs. Debt service: In September 2017, all of the Successor Agency’s outstanding tax allocation bonds (Series 1999, 2005B and 2011) were refunded to reduce future debt service costs on the bonds by an annual average of $1.0 million through final maturity in August 2032. For the ROPS 23-24 period, debt service payments on the 2017 refunding bonds will total $4.06 million (Items 180 – 183). Annual Trustee and financial reporting fees related to the bonds are expected to total $8,000 (Items 128 and 162). Administrative Cost Allowance (ACA) and Administrative Budget: The administrative cost allowance is governed by Health and Safety Code (HSC) section 34171 (b). The Code provides for an ACA that is equal to up to 3% of the authorized RPTTF, excluding amounts for administrative costs and city loan repayments (the “adjusted RPTTF”), with a minimum ACA of $250,000 annually as long as the $250,000 does not equal more than 50% of the RPTTF distribution. The Code also provides that the ACA is subject to approval of the Oversight Board and that it may reduce the amount requested by a successor agency. DOF provides a methodology for the 3% calculation that uses the prior year’s adjusted RPTTF distribution. The 2022-23 adjusted RPTTF for the National City Successor Agency is $3,206,042. When multiplied by 3%, it would result in an ACA for ROPS 23-24 of $96,181, which is below the minimum of $250,000. Based on staff’s analysis of estimated costs to operate the Successor Agency, ROPS 23-24 requests $190,000 for the ACA. The Administrative Budget, attached as Exhibit B to the resolution, details the estimated administrative expenditures for the ROPS 23-24 period. Legal Services: The Successor Agency has only one litigation matter remaining: the Affordable Housing Coalition v. Sandoval, et al case. In July, 2013, the Affordable Housing Coalition of San Diego County filed a lawsuit in the Sacramento County Superior Court against the City of National City in its capacity as the Successor Agency to the Community Development Commission of National City, as well as other cities/successor agencies in San Diego County, claiming that 1) the statutes under the former Redevelopment Law imposing affordable housing obligations upon redevelopment agencies created enforceable obligations under the redevelopment dissolution statutes, and 2) if enforceable obligations were not created, the dissolution statutes unconstitutionally impaired the obligations of contracts. In September, 2016, the Court ruled against the petitioner and in favor of the respondent cities/successor agencies. Judgment based upon this ruling was entered in November, 2016, but the ruling was appealed and is still in the appeal process. While it is possible that this case will be concluded during the ROPS 22-23 period, it is not certain. Because of this uncertainty, ROPS 23-24 requests $10,000 for this item. Page 49 of 623 FINANCIAL STATEMENT: The projected amount of property taxes to be deposited by the County into the National City Successor Agency’s RPTTF account for ROPS 23-24 is $26.6 million. Of this amount, an estimated $6.2 million would be distributed as pass-through payments to the affected taxing entities (including the City) and to the County for administrative costs. The City’s share of the pass-through payments is expected to be approximately $670,000. Then, after applying $4.3 million to the expenditures for the items listed on ROPS 23-24, approximately $16.1 million would remain for distribution to the affected taxing entities as residual balance, of which the City of National City’s share would be approximately $2.9 million. RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Balanced Budget and Economic Development ENVIRONMENTAL REVIEW: This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065. PUBLIC NOTIFICATION: Agenda Report posted a minimum of 72 hours before meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBITS: Exhibit A – ROPS 23-24 Exhibit B – ROPS 23-24 Administrative Budget Exhibit C - Resolution Page 50 of 623 Exhibit A Successor Agency: National City County: San Diego 23-24A Total (July - December) 23-24B Total (January - June) ROPS 23-24 Total A Enforceable Obligations Funded as Follows (B+C+D)-$ -$ -$ B Bond Proceeds - - - C Reserve Balance - - - D Other Funds - - - E Redevelopment Property Tax Trust Fund (RPTTF) (F+G)3,805,394$ 460,626$ 4,266,020$ F RPTTF 3,710,394 365,626 4,076,020 G Administrative RPTTF 95,000 95,000 190,000 H Current Period Enforceaable Obligations (A+E)3,805,394$ 460,626$ 4,266,020$ Certification of Oversight Board Chairman: Name Title /s/ Signature Date Currrent Period Requested Funding for Enforceable Obligations (ROPS Detail) Pursuant to Section 34177 (o) of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named successor agency. Recognized Obligation Payment Schedule (ROPS 23-24) Summary for the July 1, 2023 through June 30, 2024 Period Page 51 of 623 National City Successor Agency Recognized Obligation Payment Schedule (ROPS) 23-24 Excel Format Item # Project Name/Debt Obligation Obligation Type Payee Total Outstanding Debt or Obligation Retired ROPS 23-24 Total Bond Proceeds Reserve Balance Other Funds Redevelopment Property Tax Trust Fund (RPTTF) Admin RPTTF ROPS 22-23A Total Bond Proceeds Reserve Balance Other Funds Redevelopment Property Tax Trust Fund (RPTTF) Admin RPTTF ROPS 22-23B Total Totals 36,979,124 4,266,020 - - - 3,710,394 95,000 3,805,394 - - - 365,626 95,000 460,626 12 WI-TOD (DDA/Co-Op/Bond Docs/Other Grants) OPA/DDA/Construction 2/15/2011 6/30/2020 City of National City/EnSafe - Y - - - - - - - - 13 WI-TOD (DDA/Co-Op/Bond Docs/Other Grants) OPA/DDA/Construction 2/15/2011 6/30/2020 City of National City/DTSC - Y - - - - - - - - 87 Personnel and Admin Costs Admin Costs 7/1/2023 6/30/2024 City of National City 190,000 N 190,000 - - - - 95,000 95,000 95,000 95,000 110 Environmental Monitoring for CDC Properties OPA/DDA/Construction 7/1/2013 6/30/2019 County of San Diego - Y - - - - - - - - 111 Environmental Monitoring for CDC Properties Remediation 7/1/2011 12/4/2019 GeoSyntec Consultants - Y - - - - - - - - 128 Contract for Financial Analysis Fees 2/1/2017 12/31/2021 NHA Advisors 4,000 N 4,000 - - - 4,000 - 4,000 - 144 Contract for Legal Services Legal 2/1/2011 6/30/2018 Kane, Ballmer, & Berkman - Y - - - - - - - - 146 Contract for Legal Services Legal 10/3/2011 6/30/2019 Opper & Varco, LLP/ Richard Opper - Y - - - - - - - - 147 Contract for Legal Services Legal 1/22/2008 6/30/2019 Christensen & Spath, LLP - Y - - - - - - - - 162 Bonds Fees 7/1/2018 8/1/2032 Bank of New York 4,000 N 4,000 - - - 4,000 - 4,000 - 167 Contract for Legal Services Legal 12/15/2012 6/30/2019 Meyers Nave Hoffman Riback Silver & Wilson - Y - - - - - - - - 176 Unforseen SA remediation cost obligation - estimated additional costs Phase II WI-TOD OPA/DDA/Construction 6/21/2011 6/30/2020 Paradise Creek Housing Partners - Y - - - - - 179 Joint Defense and Cost Sharing Agreement with respect to the Affordable Housing Coalition of San Diego County v. Sandoval et al case Litigation 3/30/2015 6/30/2024 City of National City/City of Lemon Grove/Colantuono, Highsmith & Whatley, PC 10,000 N 10,000 - - 10,000 - 10,000 - 180 2017 Tax Allocation Refunding Bond - Series A Principal Payment Refunding Bonds Issued After 6/27/12 9/27/2017 8/1/2032 Bank of New York Mellon Trust Company, N. A. 31,082,000 N 3,066,000 - 3,066,000 - 3,066,000 - 181 2017 Tax Allocation Refunding Bond - Series A Interest Payment Refunding Bonds Issued After 6/27/12 9/27/2017 8/1/2032 Bank of New York Mellon Trust Company, N. A. 3,903,648 N 735,770 - - 386,971 - 386,971 348,799 348,799 182 2017 Tax Allocation Refunding Bond - Series B Principal Payment Refunding Bonds Issued After 6/27/12 9/27/2017 8/1/2029 Bank of New York Mellon Trust Company, N. A. 1,646,000 N 220,000 - - - 220,000 - 220,000 - 183 2017 Tax Allocation Refunding Bonds - Series B Interest Payment Refunding Bonds Issued After 6/27/12 9/27/2017 8/1/2029 Bank of New York Mellon Trust Company, N. A. 139,476 N 36,250 - - - 19,423 - 19,423 16,827 16,827 184 Bonds Fees US Bank - Y - - - - - - - - 185 Bonds Fees US Bank - Y - - - - - - - - 186 CDTFA Hazardous Waste Generator Fee Fees 7/1/2022 7/1/2023 City of National City - Y - - - Funding Sources ROPS 23-24A (Jul - Dec) Funding Sources ROPS 23-24B (Jan - Jun) Page 52 of 623 Item # 179 Notes/Comments This case continues to be in litigation and there is no certainty regarding when it will reach a final conclusion. $10,000 is requested in this ROPS for the Agency's share of potential costs should the case continue into the ROPS 23-24 period. National City Successor Agency Recognized Obligation Schedule (ROPS 23-24) - Notes July 1, 2023 through June 30, 2024 Page 53 of 623 AB CDEFGH Reserve Balance Other Funds RPTTF Bonds issued on or before 12/31/10 Bonds issued on or after 01/01/11 Prior ROPS RPTTF and Reserve Balances retained for future period(s) Rent, Grants, Interest, etc. Non-Admin and Admin 1 Beginning Available Cash Balance (Actual 07/01/20) RPTTF amount should exclude "A" period distribution amount 1,465 4,488,644 846,329 1,130,032 E1 = total SA beginning cash less OF cash ($846,329) from 19-20 PPA, less ROPS 20-21A RPTTF distribution ($594,590), and less PPA of $1,130,032 applied to R20-21 2 Revenue/Income (Actual 06/30/21) RPTTF amount should tie to the ROPS 19-20 total distribution from the County Auditor-Controller 73,902 1,079,632 G2 = ROPS 20-21A ($594,590) + ROPS 20-21B ($485,042) 3 Expenditures for ROPS 20-21 Enforceable Obligations (Actual 06/30/21) 2,361,219 158,652 2,155,806 4 Retention of Available Cash Balance (Actual 06/30/21) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 1,465 1,934,190 687,677 E4 = amount of RB applied to ROPS 20-21 and 21-22 by DOF and SA; F4 = sum of $248,703 and $438,974 applied by DOF to R21-22 and R22-23, respectively 5 ROPS 20-21 RPTTF Prior Period Adjustment RPTTF amount should tie to the Agency's ROPS 19-20 PPA form submitted to the CAC 53,858 6 Ending Actual Available Cash Balance (06/30/21) C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5) 0$ 0$ 193,235$ 73,902$ 0$ No entry required Report of Cash Balances Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation. For tips on how to complete the Report of Cash Balances Form, see Cash Balance Tips Sheet. ROPS 20-21 Cash Balances (07/01/20 - 06/30/21) Fund Sources Comments Bond Proceeds Page 54 of 623 Exhibit B Expenditures (Estimated Amounts per GC 34177(j)(1)) Personnel* Annual Salaries & Benefits FY23-24 % Allocated Annual Cost Six Month Cost Admin Budget ROPS 23-24A Six Month Cost Admin Budget ROPS 23-24B City Manager/Executive Director 323,143 4% 12,926 6,463 6,463 Executive Assistant IV 117,312 3% 3,519 1,760 1,760 Management Analyst III 132,395 10% 13,240 6,620 6,620 City Attorney 283,382 4% 11,335 5,668 5,668 Executive Assistant IV 111,147 3% 3,334 1,667 1,667 City Clerk/Records Management Officer 145,931 3% 4,378 2,189 2,189 Executive Secretary 96,032 3% 2,881 1,440 1,440 Director, Housing & Economic Development 203,924 5% 10,196 5,098 5,098 Real Property Agent 128,365 10% 12,836 6,418 6,418 Administrative Services Director 247,195 2% 4,944 2,472 2,472 Financial Services Officer 183,807 2% 3,676 1,838 1,838 Budget Manager 170,978 2% 3,420 1,710 1,710 Financial Analyst (part time) 63,305 30% 18,991 9,496 9,496 Senior Accountant 125,502 3% 3,765 1,883 1,883 Accountant 112,246 2% 2,245 1,122 1,122 Accountant 94,578 2% 1,892 946 946 Administrative Technician 98,837 2% 1,977 988 988 Senior Accounting Assistant 87,550 2% 1,751 875 875 Various as needed N/A N/A 35,094 17,547 17,547 Total Personnel 152,400 76,200 76,200 Maintenance & Operations Professional Services 14,400 7,200 7,200 Internal Service Charges 18,200 9,100 9,100 Miscellaneous Expenditures (supplies, equipment use, etc) 5,000 2,500 2,500 Total M&O 37,600 18,800 18,800 Total Expenditures 190,000 95,000 95,000 Funding Sources RPTTF - Administrative Allowance 190,000 95,000 95,000 Total Funding Sources 190,000 95,000 95,000 Successor Agency to the Community Development Commission as the National City Redevelopment Agency Administrative Budget: ROPS 23-24A and 23-24B * Personnel responsibilities include, but are not limited to, providing executive direction and legal guidance for the operations of the SA, scheduling and maintaining records of the meetings of the Successor Agency, preparing agenda materials for the SA Board, managing litigation, developing the ROPS for each annual period, projecting and managing the cash flow of the SA, managing contracts with service providers, executing the Long Range Property Management Plan, managing the payments to vendors, accounting for all transactions of the SA in the general ledger, and preparing annual financial statements. Not represented on this schedule, but playing an important policy role in the administration of the Successor Agency, are the City's Mayor and Council Members who serve as the Board for the Successor Agency. All personnel costs are estimates and exclude overhead costs. Page 55 of 623 RESOLUTION NO. 2022 – RESOLUTION OF THE BOARD OF THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR THE PERIOD JULY 1, 2023 THROUGH JUNE 30, 2024 (ROPS 23-24) WITH EXPENDITURES TOTALING $4,266,020, APPROVING THE ASSOCIATED ADMINISTRATIVE BUDGET OF $190,000, AND APPROVING THE SUBMITTAL OF BOTH TO THE COUNTY OF SAN DIEGO COUNTYWIDE REDEVELOPMENT SUCCESSOR AGENCY OVERSIGHT BOARD WHEREAS, the City Council established the Redevelopment Agency of the City of National City (the “Redevelopment Agency”) by Ordinance No. 1164, dated April 11, 1967; and WHEREAS, the City Council established the Housing Authority of the City of National City (the “Housing Authority”) by Ordinance No. 1484, dated October 14, 1975; and WHEREAS, the City Council established the Community Development Commission of the City of National City (the “CDC”) by Ordinance No. 1484, dated October 14, 1975, and vested the CDC with all of the powers, duties, and responsibilities of both the Redevelopment Agency and the Housing Authority, among other matters, for the purpose of enabling the CDC to operate and govern the Redevelopment Agency and the Housing Authority under a single board and as a single operating entity. The CDC acting in its capacity as the Redevelopment Agency of the City of National City is referred to herein as the “CDC-RDA”; and WHEREAS, all California redevelopment agencies, including the Redevelopment Agency, were dissolved on February 1, 2012, and successor agencies were designated and vested with the responsibility of winding down the business and fiscal affairs of the former redevelopment agencies; and WHEREAS, pursuant to AB 26, the City Council adopted Resolution No. 2012-15 on January 10, 2012, electing to be the Successor Agency to the CDC-RDA. The Successor Agency is a legal entity that exists separate and independent from the City of National City. The Successor Agency formally named itself the “Successor Agency to the Community Development Commission as the National City Redevelopment Agency”; and WHEREAS, Health and Safety Code section 34177(l) requires each successor agency to prepare a Recognized Obligation Payment Schedule (ROPS) prior to each upcoming fiscal period and submit it for approval to its oversight board; and WHEREAS, a recognized obligation payment schedule for the period of July 1, 2023 through June 30, 2024 (ROPS 23-24) with expenditures totaling $4,266,020 has been submitted by the Executive Director for consideration and approval by the Board of the Successor Agency; and WHEREAS, the ROPS 23-24 shall hereafter be submitted for review and approval to the County of San Diego Countywide Redevelopment Successor Agency Oversight Board, and submitted to the County Administrative Officer, County Auditor/Controller, State Department of Finance, and State Controller as required by Health and Safety Code section 34177(l); and WHEREAS, an Administrative Budget for the Successor Agency for the ROPS 23- 24 period with estimated expenditures totaling $190,000 has been submitted by the Executive Director for consideration and approval by the Board of the Successor Agency; and Page 56 of 623 WHEREAS, the ROPS 23-24 Administrative Budget shall hereafter be submitted for review and approval to the County of San Diego Countywide Redevelopment Successor Agency Oversight Board; and WHEREAS, the Successor Agency, now having considered ROPS 23-24 and the associated Administrative Budget, desires to approve the ROPS 23-24 and the ROPS 23-24 Administrative Budget; and WHEREAS, the Successor Agency’s ROPS 23-24, which is consistent with the requirements of the Health and Safety Code and other applicable law, is attached to this Resolution as Exhibit “A”; and WHEREAS, the Successor Agency’s ROPS 23-24 Administrative Budget, which is consistent with the requirements of the Health and Safety Code and other applicable law, is attached to this Resolution as Exhibit “B”; and WHEREAS, this Resolution has been reviewed with respect to applicability of the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq., hereafter the “Guidelines”), and the City’s environmental guidelines; and WHEREAS, this Resolution is not a “project” for purposes of CEQA, as that term is defined by Guidelines section 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per section 15378(b)(5) of the Guidelines; and WHEREAS, all of the prerequisites with respect to the adoption of this Resolution have been met. NOW, THEREFORE, THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1: The foregoing recitals are true and correct, and are hereby made by this reference a substantive part of this Resolution. Section 2: The Successor Agency’s ROPS 23-24, which is attached hereto as Exhibit “A”, is approved. Section 3: The Successor Agency’s ROPS 23-24 Administrative Budget, which is attached hereto as Exhibit “B”, is approved. Section 4: The Executive Director, or designee, is hereby authorized and directed to: (i) submit the ROPS 23-24 and the ROPS 23-24 Administrative Budget to the County of San Diego Countywide Redevelopment Successor Agency Oversight Board for approval in such format as may be directed by the Oversight Board or the County of San Diego; and (ii) take such other actions and execute such other documents as are necessary to effectuate the intent of this Resolution on behalf of the Successor Agency; and Page 57 of 623 (ii) take such other actions and execute such other documents as are necessary to comply with Health and Safety Code 34177 with regard to ROPS 23-24, and to amend the ROPS 23-24 administratively to reflect the most current cost estimates for all items and the most current prior period actual cost or cash data, or to conform to the direction, guidance, and/or requirements related to ROPS 23-24 by the Oversight Board, Department of Finance, or other reviewing agencies. Section 4: The Successor Agency determines that this Resolution is not a “project” for purposes of CEQA, as that term is defined by Guidelines section 15378, because this Resolution is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment, per section 15378(b)(5) of the Guidelines. Section 5: This Resolution shall take effect upon the date of its adoption. PASSED and ADOPTED this 6th day of December 2022. __________________________ Alejandra Sotelo-Solis, Chairwoman ATTEST: _________________________ Luz Molina, City Clerk as Secretary to the Successor Agency APPROVED AS TO FORM: ___________________________ Barry J. Schultz, Interim City Attorney Successor Agency Counsel Page 58 of 623 AGENDA REPORT Department: City Clerk's Office Prepared by: Angelita Palma, Housing Programs Manager Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: SANDAG Smart Growth Incentive Program Grant Application for Planning Cycle 5 Funding RECOMMENDATION: Adopt a Resolution Entitled, "Resolution of the City Council of the City of National City, California, ratifying the submission of an application to San Diego Association of Governments (SANDAG) and ratifying an agreement with SANDAG and establishing fund appropriations and a corresponding revenue budget for the Smart Growth Incentive Program (SGIP) funds in the amount of $294,477 for work performed on the Focused General Plan Update general tasks, Community engagement, Land Use Element, Mobility Element, Housing Element, Safety Element, PEIR, Climate Action Plan Update, and Spanish translation services.” BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: The San Diego Association of Governments (“SANDAG”) Board of Directors allocates funds under the TransNet local sales tax program to support local transportation-related infrastructure projects in the San Diego region through a competitive process. The TransNet Extension Ordinance contains provisions to fund the Smart Growth Incentive Program (“SGIP”) for which funding began on April 1, 2008. The SGIP encompasses projects that better integrate transportation and land use and recognizes the comprehensive effort to integrate smart growth place making, access to transit, and environmental justice. On November 19, 2021, SANDAG issued a call for projects from local jurisdictions in San Diego County wishing to apply for a portion of the TransNet SGIP funds for use on planning projects meeting certain criteria, and authorizing up to $3 million from the SGIP to be used for planning projects. In January 2022 the City of National City (“City”) submitted an application to SANDAG for the SGIP funds. In June 2022 SANDAG notified the City of the SGIP grant award in the amount of $294,477. An agreement was provided by SANDAG to the City in August 2022. The funding Agreement (Exhibit No. 1) will allocate the TransNet Extension Ordinance funding SANDAG received. The SANDAG funding commitment to the City is subject retail transactions and use tax revenues, which fluctuate may impact funding availability for this Project. The City shall not exceed $294,477 (fund limit) and will only be reimbursed for allowable costs. The appropriation will be used for or work performed on the Focused General Plan Update general tasks, Community engagement, Land Use Element, Mobility Element, Housing Element, Safety Element, PEIR, Climate Action Plan Update, and Spanish translation services (collectively known as “Elements”). The Resolution would approve the SGIP agreement with SANDAG and appropriate grant funds for work performed in fiscal year 2022 and will carry over funds to succeeding fiscal years until the funded scope is complete. Page 59 of 623 FINANCIAL STATEMENT: The SGIP funds are to be appropriated to revenue account 501-45478-3463 in the amount of $294,477. The SGIP allocation should be appropriated to expenditure account 501-419-478-213- 0000 in the amount of $294,477. There was a grant match of $1,602,226.97 for which Housing Authority funds have already been appropriated. RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Housing and Community Development ENVIRONMENTAL REVIEW: This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBITS: Exhibit A - Agreement Exhibit B - Resolution Page 60 of 623 Page 61 of 623 Page 62 of 623 Page 63 of 623 Page 64 of 623 Page 65 of 623 Page 66 of 623 Page 67 of 623 Page 68 of 623 Page 69 of 623 Page 70 of 623 Page 71 of 623 Page 72 of 623 Page 73 of 623 Page 74 of 623 Page 75 of 623 Page 76 of 623 Page 77 of 623 Page 78 of 623 Page 79 of 623 Page 80 of 623 Page 81 of 623 Page 82 of 623 Page 83 of 623 Page 84 of 623 RESOLUTION NO. 2022 - RESOLUTION OF THE CITY COUNCIL OF CITY OF NATIONAL CITY, CALIFORNIA, RATIFYING THE SUBMISSION OF AN APPLICATION TO SAN DIEGO ASSOCIATION OF GOVERNMENTS (SANDAG) AND RATIFYING AN AGREEMENT WITH SANDAG AND ESTABLISHING FUND APPROPRIATIONS AND A CORRESPONDING REVENUE BUDGET FOR THE SMART GROWTH INCENTIVE PROGRAM (SGIP) FUNDS IN THE AMOUNT OF $294,477 FOR WORK PERFORMED ON THE FOCUSED GENERAL PLAN UPDATE GENERAL TASKS, COMMUNITY ENGAGEMENT, LAND USE ELEMENT, MOBILITY ELEMENT, HOUSING ELEMENT, SAFETY ELEMENT, PEIR, CLIMATE ACTION PLAN UPDATE, AND SPANISH TRANSLATION SERVICES WHEREAS, the San Diego Association of Governments (“SANDAG”) Board of Directors allocates funds under the TransNet local sales tax program to support local transportation-related infrastructure projects in the San Diego region through a competitive process; and WHEREAS, the TransNet Extension Ordinance contains provisions to fund the Smart Growth Incentive Program (“SGIP”); and WHEREAS, the SGIP encompasses projects that better integrate transportation and land use and recognizes the comprehensive effort to integrate smart growth place making, access to transit, and environmental justice; and WHEREAS, on November 19, 2021, SANDAG issued a call for projects from local jurisdictions in San Diego County wishing to apply for a portion of the TransNet SGIP funds for use on planning projects meeting certain criteria, and authorizing up to $3 million from the SGIP to be used for planning projects; and WHEREAS, in January 2022 the City of National City (“City”) submitted an application to SANDAG for the SGIP funds. In June 2022 SANDAG notified the City of the SGIP grant award in the amount of $294,477; and WHEREAS, an agreement was provided by SANDAG and executed by the City in August 2022. The funding Agreement (Exhibit No. 1) will allocate the TransNet Extension Ordinance funding SANDAG received; and WHEREAS, the SANDAG funding commitment to the City is subject retail transactions and use tax revenues, which fluctuate and may impact funding availability for this Project; and WHEREAS, the City reimbursement shall not exceed $294,477 (fund limit) and will only be reimbursed for allowable costs. The appropriation will be used for work performed on the Focused General Plan Update general tasks, Community engagement, Land Use Element, Mobility Element, Housing Element, Safety Element, PEIR, Climate Action Plan Update, and Spanish translation services (collectively known as “Elements”); and Page 85 of 623 Resolution No. 2022 – Page Two WHEREAS, the Resolution appropriates $294,477 in grant funds for work performed in fiscal year 2022, and will carry over funds to succeeding fiscal years until the funded scope is complete; and WHEREAS, the City Manager or his designee will be authorized to execute the agreements, approve budget adjustments as necessary to reflect funding the allocation for the SGIP Activities. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1: Ratifies the submission of a TransNet SGIP grant application and the execution of the TransNet SGIP grant agreement with SANDAG. Section 2: Authorizes TransNet SGIP funds in the amount of $294,477 for work performed on the Focused General Plan Update general tasks, Community engagement, Land Use Element, Mobility Element, Housing Element, Safety Element, PEIR, Climate Action Plan Update, and Spanish translation services (collectively known as “Elements”). Section 3: Authorizies the appropriation of $294,477 in SGIP grant funds for work performed in fiscal year 2022, and will carry over funds to succeeding fiscal years until the funded scope is complete. Section 4: Authorizes the City Manager or his designee to execute agreements, and approve budget adjustments as necessary to reflect funding the allocation for the SGIP Activities. Section 5: The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original Resolution. PASSED and ADOPTED this 6th day of December 2022. _____________________________ Alejandra Sotelo-Solis, Mayor ATTEST: _____________________________ Luz Molina, City Clerk APPROVED AS TO FORM: _____________________________ Barry J. Schultz, Interim City Attorney Page 86 of 623 AGENDA REPORT Department: Public Works Prepared by: Roberto Yano, Director of Engineering and Public Works Meeting Date: Tuesday, August 2, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Second Amendment to Agreement with National City Electric RECOMMENDATION: Adopt a Resolution Entitled, "Resolution of the City Council of the City of National City, California, authorizing the Mayor to approve a Second Amendment to the Agreement with National City Electric increasing the not to-exceed amount by $50,000 for a total Agreement amount of $150,000.” BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: On July 1, 2020, the City of National City entered into an Agreement with National City Electric, to provide citywide specialized electrical maintenance services, such as light fixture and circuit breaker repairs and installs, rewiring, and conduit runs, as needed and as directed by the City’s Facilities Maintenance Supervisor. The original Agreement is for a not-to-exceed amount of $60,000, and for an initial term of three years, with the option to extend for up to three, one-year extensions. On September 7, 2021, City Council adopted Resolution 2021-123 approving a First Amendment to the Agreement with National City Electric, increasing the not-to-exceed amount by $40,000 for a total agreement amount of $100,000. In alignment with the City’s efforts to utilize local vendors and based on the performance, quality of work, and need for continuous specialized electrical maintenance services needed to assist the Engineering & Public Works Facilities Maintenance Division with major projects at National City Police Department and Casa de Salud, including, but not limited to, installation of new gates with power, emergency lighting for fire code compliancy, and circuit breaker panels power issues, identifying, and labeling, staff is requesting City Council approval of a Second Amendment to the Agreement with National City Electric, increasing the not-to-exceed amount of the Agreement by $50,000, for a total Agreement amount of $150,000. Funds are appropriated in various accounts within the departmental FY 2023 budget; funding for subsequent fiscal years is dependent on future appropriations as part of annual budget. FINANCIAL STATEMENT: Funding appropriated through annual budget process. Page 87 of 623 RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Not Applicable ENVIRONMENTAL REVIEW: This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBIT: Exhibit A – Second Amendment to Agreement Exhibit B - Resolution Page 88 of 623 Page 89 of 623 Page 90 of 623 RESOLUTION NO. 2022 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, AUTHORIZING THE MAYOR TO APPROVE A SECOND AMENDMENT TO THE AGREEMENT WITH NATIONAL CITY ELECTRIC INCREASING THE NOT- TO-EXCEED AMOUNT BY $50,000 FOR A TOTAL AGREEMENT AMOUNT OF $150,000. WHEREAS, on July 1, 2020, the City of National City entered into an Agreement with National City Electric, to provide citywide specialized electrical maintenance services. The original Agreement is for a not-to-exceed amount of $60,000, and for an initial term of three years, with the option to extend for up to three, one-year extensions; and WHEREAS, on September 7, 2021, City Council adopted Resolution 2021-123 approving a First Amendment to the Agreement with National City Electric, increasing the not-to-exceed amount by $40,000 for a total agreement amount of $100,000; and WHEREAS, in alignment with the City’s efforts to utilize local vendors and based on the performance, quality of work, and need for continuous specialized electrical maintenance services needed to assist the Engineering & Public Works Facilities Maintenance Division, staff is requesting City Council approval of a Second Amendment to the Agreement with National City Electric, increasing the not-to-exceed amount of the Agreement by $50,000, for a total Agreement amount of $150,000. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1: Authorizes the Mayor to execute a Second Amendment to the Agreement with National City Electric (attached to the Agenda Report as Exhibit A), increasing the not-to-exceed amount by $50,000 for a total Agreement amount of $150,000. Section 2: 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 6th day of December, 2022. Alejandra Sotelo-Solis, Mayor ATTEST: Luz Molina, City Clerk APPROVED AS TO FORM: Barry J. Schultz, Interim City Attorney Page 91 of 623 AGENDA REPORT Department: Finance Prepared by: Phillip Davis, Interim Finance Director Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Public Agency Retirement Services (PARS) Agreement RECOMMENDATION: Approve the Resolution named below authorizing the Mayor to sign the agreement. Resolution of the City Council of the City of National City, California, Authorizing the Mayor to Execute the Agreement between the City of National City and Phase II Systems d.b.a. Public Agency Retirement Services, for Comprehensive Trust Administration Services BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: The City entered into an agreement with Phase II Systems, d.b.a. “Public Agency Retirement Services” on December 20, 2017, to provide comprehensive trust administration services for the City’s irrevocable supplemental pension trust. The City amended the agreement in September 17, 2019, to include comprehensive trust administration services for the Other Post-Employment Benefits Trust. The agreement will expire on December 31, 2022, and the new agreement will be for a period of three years with three one-year extensions available. The PARS Pension Rate Stabilization Program (Pension) and Other Post-Employment Benefits (OPEB) are Section 115 irrevocable trusts designed for agencies to prefund rising pension costs and address pension liabilities and other post-employment benefits (i.e. health care). This cutting edge program can mitigate long-term pension investment volatility, while at the same time providing employers with greater local control of assets and investment flexibility to create a more actuarially sound retirement system. The City began funding the Pension trust in fiscal year 2017-18. The balance as of June 30, 2021 was $7,527,020. The City began funding the OPEB trust in fiscal year 2019-20 and the balance as of June 30, 2020 was $3,556,331. The funds may only be used for pension-related costs or for other post-employment benefit related costs. The two funds may only be accessed through City Council approval. FINANCIAL STATEMENT: The fee for trust administration services for the Pension Trust is approximately $18,142 based on the trust fund balance of $7,527,020. The fee for trust administration services for the OPEB trust is approximately $8,890 based on the trust fund balance of $3,556,331. Page 92 of 623 RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Not Applicable ENVIRONMENTAL REVIEW: This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBITS: 1. PARS Agreement 2. Exhibit A – Scope of Services 3. Exhibit B – Fee Schedule 4. Exhibit C – Data Requirements 5. Resolution Page 93 of 623 AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND PHASE II SYSTEMS D.B.A. “PUBLIC AGENCY RETIREMENT SYSTEMS” THIS AGREEMENT is entered into on this 6th day of December, 2022, by and between the CITY OF NATIONAL CITY, a municipal corporation (the “C ITY”), and PHASE II SYSTEMS, a California Corporation, d.b.a.”Public Agency Retirement Services” (the “CONSULTANT”). R E C I T A L S WHEREAS, the CITY desires to continue to employ the CONSULTANT to provide comprehensive trust administration services for the irrevocable supplement pension trust (the “Pension Trust”) originally entered into on December 20, 2017; and WHEREAS, the CITY desires to continue to employ the CONSULTANT to provide comprehensive trust administration services for the irrevocable Other Post Employment Benefits trust (the “OPEB Trust”) originally entered into on September 17, 2019; and WHEREAS, the CITY has determined that the CONSULTANT is an administrator of irrevocable supplemental pension trust and Other Post Employment Benefits trust and is qualified by experience and ability to perform the services desired by the CITY, and the CONSULTANT is willing to perform such services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF CONSULTANT. The CITY agrees to engage the CONSULTANT to administer an irrevocable supplemental pension trust and Other Post Employment Benefits trust on behalf of the CITY, and to perform all other administration services related thereto as described in the attached Exhibits “A” and “C”, and the CONSULTANT agrees to perform the services set forth here in accordance with all terms and conditions contained herein, and the CONSULTANT agrees to perform the services set forth here in accordance with all terms and conditions contained herein. The CONSULTANT represents that all services shall be performed directly by the CONSULTANT or under direct supervision of the CONSULTANT. 2. EFFECTIVE DATE AND LENGTH OF AGREEMENT. This Agreement will become effective on December 6th, 2022. The duration of this Agreement is for the period of December 6, 2022 through December 31, 2025. The Parties may exercise up to three one-year extensions. Any extension of this Agreement must be approved in writing by the City Council. 3. SCOPE OF SERVICES. The CONSULTANT will perform those pension and OPEB trust administration services as set forth in the attached Exhibits “A” and “C.” Page 94 of 623 Standard Agreement City of National City and Revised January 2021 Phase II Sys, dba PARS Once supplied with the information needed to execute its duties under Exhibits “A” an “C”, the CONSULTANT shall be responsible for all research and reviews related to the work and shall not rely on personnel of the CITY for such services, except as authorized in advance by the CITY. The CONSULTANT shall appear at meetings specified in Exhibit “A” to keep staff and City Council advised of the progress on the project. The CITY may unilaterally, or upon request from the CONSULTANT, from time to time reduce or increase the Scope of Services to be performed by the CONSULTANT under this Agreement. Upon doing so, the CITY and the CONSULTANT agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction or increase in the compensation associated with said change in services. 4. PROJECT COORDINATION AND SUPERVISION. The Administrative Services Director hereby is designated as the Project Coordinator for the CITY and will monitor the progress and execution of this Agreement. The CONSULTANT shall assign a single Project Director to provide supervision and have overall responsibility for the progress and execution of this Agreement for the CONSULTANT. Mitch Barker thereby is designated as the Project Director for the CONSULTANT. 5. COMPENSATION AND PAYMENT. The compensation for the CONSULTANT shall be based upon the schedule and formula set forth in Exhibit “B.” Compensation due to the CONSULTANT shall be deducted from the Trust’s assets. The CONSULTANT shall submit a monthly statement to the CITY documenting the amount deducted from the Trust. The total cost for all work described in this Agreement shall not exceed those rates listed in Exhibit “B” without prior written authorization from the CITY. The CONSULTANT shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred, and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CITY , and for furnishing of copies to the CITY, if requested. 6. ACCEPTABILITY OF WORK. The CITY 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. In the event the CONSULTANT and the CITY cannot agree to the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONSULTANT in this Agreement, the CITY or the CONSULTANT shall give to the other written notice. Within ten (10) business days, the CONSULTANT 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 and/or the compensation payable to the CONSULTANT. 7. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda, Reports, Maps, Drawings, Plans, Specifications, and other documents prepared by the CONSULTANT for this project, whether paper or electronic, shall: (1) be free from defects; (2) become the property of the CITY for use with respect to this project; and (3) shall be turned over to the CITY upon completion of the project, or any phase thereof, as contemplated by this Agreement. Page 95 of 623 Standard Agreement City of National City and Revised January 2021 Phase II Sys, dba PARS Contemporaneously with the transfer of documents, the CONSULTANT hereby assigns to the CITY, and CONSULTANT thereby expressly waives and disclaims any copyright in, and the right to reproduce, all written material, drawings, plans, specifications, or other work prepared under this Agreement, except upon the CITY’S prior authorization regarding reproduction, which authorization shall not be unreasonably withheld. The CONSULTANT shall, upon request of the CITY, execute any further document(s) necessary to further effectuate this waiver and disclaimer. The CONSULTANT agrees that the CITY may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium, or method utilize the CONSULTANT’S written work product for the CITY’S purposes, and the CONSULTANT expressly waives and disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to intellectual property and artistic works. Any modification or reuse by the CITY of documents, drawings, or specifications prepared by the CONSULTANT shall relieve the CONSULTANT from liability under Section 14, but only with respect to the effect of the modification or reuse by the CITY, or for any liability to the CITY should the documents be used by the CITY for some project other than what was expressly agreed upon within the Scope of Services of this project, unless otherwise mutually agreed. 8. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners, or joint venturers with one another. Neither the CONSULTANT nor the CONSULTANT’S employees are employees of the CITY, and are not entitled to any of the rights, benefits, or privileges of the CITY’S employees, including but not limited to retirement, medical, unemploy- ment, or workers’ compensation insurance. This Agreement contemplates the personal services of the CONSULTANT and the CONSULTANT’S employees, and it is recognized by the parties that a substantial inducement to the CITY for entering into this Agreement was, and is, the professional reputation an d competence of the CONSULTANT and its employees. Neither this Agreement, nor any interest herein, may be assigned by the CONSULTANT without the prior written consent of the CITY. Nothing herein contained is intended to prevent the CONSULTANT from employing or hiring as many employees, or SUBCONSULTANTS, as the CONSULTANT may deem necessary for the proper and efficient performance of this Agreement. All agreements by CONSULTANT with its SUBCONSULTANT(S) shall require the SUBCONSULTANT(S) to adhere to the applicable terms of this Agreement. 9. CONTROL. Neither the CITY, nor its officers, agents, or employees shall have any control over the conduct of the CONSULTANT or any of the CONSULTANT’S employees, except as set forth in this Agreement. The CONSULTANT, or the CONSULTANT’S agents, servants, or employees are not in any manner agents, servants, or employees of the CITY. The CONSULTANT and its agents, servants, and employees are wholly independent from the CITY and CONSULTANT’S obligations to the CITY are solely prescribed by this Agreement. 10. COMPLIANCE WITH APPLICABLE LAW. The CONSULTANT, in the performance of the services to be provided herein, shall comply with all applicable state and federal statutes and regulations, and all applicable ordinances, rules, and regulations of the City of National City, whether now in force or subsequently enacted. The CONSULTANT and each of its Page 96 of 623 Standard Agreement City of National City and Revised January 2021 Phase II Sys, dba PARS SUBCONSULTANT(S), shall obtain and maintain a current City of National City business license prior to and during performance of any work pursuant to this Agreement. 11. LICENSES, PERMITS, ETC. The CONSULTANT represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. CONSULTANT must promptly produce a copy of any such license, permit, or approval to CITY upon request. The CONSULTANT represents and covenants that the CONSULTANT shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, or approval which is legally required for the CONSULTANT to practice its profession. 12. STANDARD OF CARE. A. The CONSULTANT, in performing any services under this Agreement, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the CONSULTANT’S trade or profession currently practicing under similar conditions and in similar locations. The CONSULTANT shall take all special precautions necessary to protect the CONSULTANT’S employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site. B. Unless disclosed in writing prior to the date of this Agreement, the CONSULTANT warrants to the CITY that it is not now, nor has it for the five (5) years preceding, been debarred by a governmental agency or involved in debarment, arbitration or litigation proceedings concerning the CONSULTANT’S professional performance or the furnishing of materials or services relating thereto. C. The CONSULTANT is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the project the CONSULTANT has been retained to perform, within the time requirements of the CITY, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONSULTANT has notified the CITY otherwise, the CONSULTANT warrants that all products, materials, processes or treatments identified in the project documents prepared for the CITY are reasonably commercially available. Any failure by the CONSULTANT to use due diligence under this sub-section will render the CONSULTANT liable to the CITY for any increased costs that result from the CITY’S later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time. 13. NON-DISCRIMINATION PROVISIONS. The CONSULTANT shall not discriminate against any 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 CONSULTANT 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 CONSULTANT 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. Page 97 of 623 Standard Agreement City of National City and Revised January 2021 Phase II Sys, dba PARS 14. CONFIDENTIAL INFORMATION. The CITY may from time to time communicate to the CONSULTANT certain confidential information to enable the CONSULTANT to effectively perform the services to be provided herein. The CONSULTANT shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CITY. The CONSULTANT shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services to be provided herein. The foregoing obligation of this Section 14, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the CONSULTANT, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONSULTANT without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONSULTANT by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. The CONSULTANT shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this Agreement without the prior written consent of the CITY. In its performance hereunder, the CONSULTANT shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. CONSULTANT shall be liable to CITY for any damages caused by breach of this condition, pursuant to the provisions of Section 15. 15. INDEMNIFICATION AND HOLD HARMLESS. To the maximum extent provided by law, The CONSULTANT agrees to defend, indemnify and hold harmless the City of National City, its officers, officials, agents, employees, and volunteers against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys’ fees, and defense costs, of any kind or nature, including workers’ compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONSULTANT’S performance or other obligations under this Agreement; 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. CITY will cooperate reasonably in the defense of any action, and CONSULTANT shall employ competent counsel, reasonably acceptable to the City Attorney. The indemnity, defense, and hold harmless obligations contained herein shall survive the termination of this Agreement for any alleged or actual omission, act, or negligence under this Agreement that occurred during the term of this Agreement. 16. EMPLOYEE PAYMENTS AND INDEMNIFICATION. 16.1 PERS Eligibility Indemnification. If CONTRACTOR’s employee(s) providing services under this Agreement claims, or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (“PERS”) to be eligible for enrollment in PERS of the CITY, CONTRACTOR shall indemnify, defend, and hold harmless CITY for the payment of any employer and employee contributions for PERS benefits on behalf of the employee as well as for payment of any penalties and interest on such contributions which would otherwise be the responsibility of the CITY. Page 98 of 623 Standard Agreement City of National City and Revised January 2021 Phase II Sys, dba PARS CONTRACTOR’S employees providing service under this Agreement shall not: (1) qualify for any compensation and benefit under PERS; (2) be entitled to any benefits under PERS; (3) enroll in PERS as an employee of CITY; (4) receive any employer contributions paid by CITY for PERS benefits; or (5) be entitled to any other PERS-related benefit that would accrue to a CITY employee. CONTRACTOR’s employees hereby waive any claims to benefits or compensation described in this Section 16. This Section 16 applies to CONTRACTOR notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary. 16.2 Limitation of CITY Liability. The payment made to CONTRACTOR under this Agreement shall be the full and complete compensation to which CONTRACTOR and CONTRACTOR’s officers, employees, agents, and subcontractors are entitled for performance of any work under this Agreement. Neither CONTRACTOR nor CONTRACTOR’s officers, employees, agents, and subcontractors are entitled to any salary or wages, or retirement, health, leave or other fringe benefits applicable to CITY employees. The CITY will not make any federal or state tax withholdings on behalf of CONTRACTOR. The CITY shall not be required to pay any workers’ compensation insurance on behalf of CONTRACTOR. 16.3 Indemnification for Employee Payments. CONTRACTOR agrees to defend and indemnify the CITY for any obligation, claim, suit, or demand for tax, retirement contribution including any contribution to PERS, social security, salary or wages, overtime payment, or workers’ compensation payment which the CITY may be required to make on behalf of (1) CONTRACTOR, (2) any employee of CONTRACTOR, or (3) any employee of CONTRACTOR construed to be an employee of the CITY, for work performed under this Agreement. This is a continuing obligation that survives the termination of this Agreement. 17. WORKERS’ COMPENSATION. The CONSULTANT shall comply with all of the provisions of the Workers’ Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Labor Code and all amendments thereto; and all similar State or federal acts or laws applicable; and shall indemnify, and hold harmless the CITY and its officers, employees, and volunteers from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description, including reasonable attorney’s fees and defense costs presented, brought or recovered against the CITY or its officers, employees, or volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the CONSULTANT under this Agreement. 18. INSURANCE. The CONSULTANT, at its sole cost and expense, shall purchase and maintain, and shall require its SUBCONSULTANT(S), when applicable, to purchase and maintain throughout the term of this Agreement, the following insurance policies: A. If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence. 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. Page 99 of 623 Standard Agreement City of National City and Revised January 2021 Phase II Sys, dba PARS 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 this “project” or “location”. The “project” or “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 CONSULTANT’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. If CONSULTANT has no employees subject to the California Workers’ Compensation and Labor laws, CONSULTANT shall execute a Declaration to that effect. Said Declaration shall be provided to CONSULTANT by CITY. 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 CONSULTANT 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. G. The Certificate Holder for all policies of insurance required by this Section shall be: 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. 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 CONSULTANT does not keep all insurance policies required by this Section 18 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 Page 100 of 623 Standard Agreement City of National City and Revised January 2021 Phase II Sys, dba PARS requirements of this Section 18, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. K. If the CONSULTANT 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 CONSULTANT. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY. 19. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out-of-court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys’ fees. For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney’s fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorney’s fees to the prevailing party if other than the CITY shall, in addition, be limited to the amount of attorney’s fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual amount of attorney’s fees incurred by the prevailing party. 20. TERMINATION. A. This Agreement may be terminated with or without cause by the CITY. Termination without cause shall be effective only upon 60-day’s written notice to the CONSULTANT. During said 60-day period the CONSULTANT shall perform all services in accordance with this Agreement. B. This Agreement may also be terminated immediately by the CITY for cause in the event of a material breach of this Agreement, misrepresentation by the CONSULTANT in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the CITY. C. Termination with or without cause shall be effected by delivery of written Notice of Termination to the CONSULTANT as provided for herein. D. In the event of termination, all finished or unfinished Memoranda Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONSULTANT, whether paper or electronic, shall immediately become the property of and be delivered to the CITY, and the CONSULTANT shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CITY by the CONSULTANT’S breach, if any. Thereafter, ownership of said written material shall vest in the CITY all rights set forth in Section 7. E. The CITY further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONSULTANT; (2) a reorganization of the CONSULTANT for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONSULTANT. 21. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express Page 101 of 623 Standard Agreement City of National City and Revised January 2021 Phase II Sys, dba PARS or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To CITY: Molly Brennan Director of Administrative Services Finance and Human Resources Departments City of National City 1243 National City Boulevard National City, CA 91950-4397 To CONSULTANT: Daniel Johnson President PARS 4350 Von Karman Avenue, Suite 100 Newport Beach, CA 92660 Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty-eight (48) hours by letter mailed or delivered as specified in this Section. 22. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this Agreement, the CONSULTANT shall not perform services of any kind for any person or entity whose interests conflict in any way with those of the City of National City. The CONSULTANT also agrees not to specify any product, treatment, process or material for the project in which the CONSULTANT has a material financial interest, either direct or indirect, without first notifying the CITY of that fact. The CONSULTANT shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The CONSULTANT shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the CITY in which the CONSULTANT has a financial interest as defined in Government Code Section 87103. The CONSULTANT represents that it has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the CITY. Page 102 of 623 Standard Agreement City of National City and Revised January 2021 Phase II Sys, dba PARS If checked, the CONSULTANT shall comply with all of the reporting requirements of the Political Reform Act and the National City Conflict of Interest Code. Specifically, the CONSULTANT shall file a Statement of Economic Interests with the City Clerk of the City of National City in a timely manner on forms which the CONSULTANT shall obtain from the City Clerk. The CONSULTANT shall be strictly liable to the CITY for all damages, costs or expenses the CITY may suffer by virtue of any violation of this Section 22 by the CONSULTANT. 23. PREVAILING WAGES. State prevailing wage rates may apply to work performed under this Agreement. State prevailing wages rates apply to all public works contracts as set forth in California Labor Code, including but not limited to, Sections 1720, 1720.2, 1720.3, 1720.4, and 1771. Consultant is solely responsible to determine if State prevailing wage rates apply and, if applicable, pay such rates in accordance with all laws, ordinances, rules, and regulations. 24. ADMINISTRATIVE PROVISIONS. A. Computation of Time Periods. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or federal, state, or legal holiday. 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. C. Captions. 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. 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. E. 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. F. Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. G. Assignment & Assumption of Rights. CONSULTANT shall not assign this Agreement, in whole or in part, to any other party without first obtaining the written consent of CITY. H. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. I. Applicable Law. This Agreement shall be governed by and construed 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. Page 103 of 623 Standard Agreement City of National City and Revised January 2021 Phase II Sys, dba PARS J. Audit. If this Agreement exceeds ten-thousand dollars ($10,000), the parties shall be subject to the examination and audit of the State Auditor for a period of three (3) years after final payment under the Agreement, per Government Code Section 8546.7. K. Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. L. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. M. Subcontractors or Subconsultants. The CITY is engaging the services of the CONSULTANT identified in this Agreement. The CONSULTANT shall not subcontract any portion of the work, unless such subcontracting was part of the original proposal or is allowed by the CITY in writing. In the event any portion of the work under this Agreement is subcontracted, the subconsultant(s) shall be required to comply with and agree to, for the benefit of and in favor of the CITY, both the insurance provisions in Section 18 and the indemnification and hold harmless provision of Section 15 of this Agreement. N. 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, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) each party and such party’s counsel and advisors have reviewed this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) 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. Page 104 of 623 Standard Agreement City of National City and Revised January 2021 Phase II Sys, dba PARS CITY OF NATIONAL CITY By: ____________________________ Alejandra Sotelo-Solis, Mayor APPROVED AS TO FORM: By: ____________________________ Barry J. Schultz Interim City Attorney -- OR -- By: _____________________________ PHASE II SYSTEMS, A CALIFORNIA CORPORATION D.B.A. “PUBLIC AGENCY RETIREMENT SERVICES” By: ______________________________ Daniel Johnson ______________________________ (Print) ______________________________ President By: ______________________________ Tod Hammereas) ______________________________ (Print) ______________________________ Chief Financial Officer Jennifer K. Gilman Assistant City Attorney Page 105 of 623 EXHIBIT A Page 1 of 2 PUBLIC AGENCY RETIREMENT SERVICES SCOPE OF SERVICES The CONSULTANT will provide the following services for the City of National City’s irrevocable supplemental pension trust plan (“Plan”): 1. Plan Installation Services: A. Meeting with appropriate CITY personnel to discuss Plan provisions, implementation timelines, the actuarial valuation process, funding strategies, benefit communication strategies, data reporting, and submission requirements for contributions, reimbursements, and distributions; B. Providing necessary analysis and advisory services to finalize the elements of Paragraph 1(A) of this Exhibit A; C. Providing all documents needed to create the Plan for review and approval by the City Attorney. Resulting final Plan documents must be approved by the CITY before the commencement of Plan Administration Services outlined in Paragraph 2 below. 2. Plan Administration Services: A. Monitoring the receipt of Plan contributions made by the CITY to the trustee of the Trust (“Trustee”), based upon information received from the CITY and the Trustee; B. Performing periodic accounting of Plan assets, reimbursements/distributions, and investment activity, based upon information received from the CITY and/or Trustee; C. Coordinating the processing of distribution payments pursuant to authorized direction by the CITY, and the provisions of the Plan, and, to the extent possible, based upon CITY- provided Data; D. Coordinating actions with the Trustee as directed by the Plan Administrator within the scope the Agreement; E. Preparing and submitting a monthly report of Plan activity to the CITY, unless directed by the CITY otherwise; F. Conducting an annual in-person client review to provide a full administrative and investment review of the Plan and to ensure the CITY’S ongoing satisfaction with its participation in the Plan. G. Conducting in-person or over-the-phone meetings more frequently, if requested by the CITY. H. Providing updates of the Plan to the City Council during one of its public meetings, if requested by the CITY. I. Preparing and submitting an annual report of Plan activity to the CITY; Page 106 of 623 Page 2 of 2 J. Facilitating actuarial valuation updates and funding modifications for compliance with GASB 45/75, if prefunding OPEB obligations; K. Coordinating periodic audits of the Plan; L. Monitoring Plan and Trust compliance with federal and state laws. 3. The CITY acknowledges that PARS is not licensed to provide, and does not offer tax, accounting, legal, investment, or actuarial advice. Page 107 of 623 EXHIBIT B PUBLIC AGENCY RETIREMENT SERVICES RATES TO PERFORM PENSION & OPEB TRUST ADMINISTRATION SERVICES CONSULTANT will be compensated for performance of Services, as described in Exhibit A based upon the following schedule: ANNUAL ASSET FEE For Plan Asset Balances from Annual Rate $0 to $10,000,000 0.25% $10,000,001 to $15,000,000 0.20% $15,000,001 to $50,000,000 0.15% $50,000,001 and above 0.10% Annual Rates are prorated and paid monthly. The annual asset fee shall be calculated by the following formula: Annual Rate divided by 12 (months of the year) multiplied by the Plan asset balance at the end of the month. TRUSTEE & INVESTMENT MANAGEMENT FEES Trustee and investment management fees are not included in the annual asset fees stated above. Trustee and investment management services are provided under a separate agreement with US Bank, and trustee and investment management fees are paid to US Bank. These fees include investment policy development, asset allocation recommendations, asset management, and all custodial services and are based upon the following schedule: For Plan Asset Balances from Annual Rate $0 to $5,000,000 0.35% $5,000,001 to $10,000,000 0.25% $10,000,001 to $15,000,000 0.20% $15,000,001 to $50,000,000 0.15% $50,000,001 and above 0.10% Annual Rates are prorated and paid monthly. Annual trustee and investment management fees shall be calculated by the following formula: Annual Rate divided by 12 (months of the year) multiplied by the Plan asset balance at the end of the month. Both the annual asset fees and trustee and investment management fees shall be deducted from Plan assets. Page 1 of 1 Page 108 of 623 EXHIBIT C Page 1 of 1 PUBLIC AGENCY RETIREMENT SERVICES DATA REQUIREMENTS CONSULTANT will provide all services required under this Agreement upon receiving the following information: 1. Executed legal documents: A. certified resolution B. adoption agreement to the Plan C. trustee investment forms 2. Contribution – completed Contribution Transmittal Form signed by the Plan Administrator (or authorized designee) which contains the following information: A. agency name B. contribution amount C. contribution date D. contribution method (check, ACH, wire) 3. Distribution – completed Transfer/Payment/Reimbursement Form signed by the Plan Administrator (or authorized designee) which contains the following information: A. agency name B. payment reimbursement/distribution amount C. applicable statement date D. copy of applicable premium, claim, statement, warrant, and/or administrative expense evidencing payment E. signed certification of reimbursement/distribution from the Plan Administrator (or authorized designee) 4. Other information pertinent to the CONSULTANT’S services as reasonably requested by the CONSULTANT and the CITY’S actuarial provider. Page 109 of 623 RESOLUTION NO. 2022 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND PHASE II SYSTEMS, DBA PUBLIC AGENCY RETIREMENT SERVICES, FOR COMPREHENSIVE TRUST ADMINISTRATION SERVICES WHEREAS, the City entered into an agreement with Phase II Systems, dba “Public Agency Retirement Services (PARS) on December 20, 2017 for comprehensive trust administrative services for the City’s Section 115 irrevocable supplemental pension trust; and WHEREAS, the City amended the PARS agreement on September 17, 2019 to include comprehensive trust administrative services for the City’s Section 115 irrevocable trust for other post-employment benefits; and WHEREAS, the agreement between the City and PARS is set to expire on December 31, 2022. 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 authorizes the Mayor to execute the agreement, attached to the Agenda Report as Exhibit 1, which will end on December 31, 2025. Section 2: 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 6th day of December, 2022. Alejandra Sotelo-Solis, Mayor ATTEST: Luz Molina, City Clerk APPROVED AS TO FORM: Barry J. Schultz, Interim City Attorney Page 110 of 623 AGENDA REPORT Department: City Clerk's Office Prepared by: Roberto Yano, Director of Public Works/City Engineer Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Adopt a Resolution accepting and approving the recordation of a Deed Restriction with the State of California, for El Toyon Park Improvements. RECOMMENDATION: Adopt a Resolution Entitled, Resolution of the City Council of the City of National City, California, 1) accepting and approving the recordation of a Deed Restriction with the State of California, by and through the California Department of Parks and Recreation, for El Toyon Park Improvements – Prop 68 – SPP Program; and 2) authorizing the City Manager to execute said Deed Restriction. BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: On March 2, 2021, per City Council Resolution No. 2021-14, City Council authorized staff to submit an application for Proposition 68 Statewide Park Development and Community Revitalization Program (SPP) application for the El Toyon Park Project, and authorized the City Manager to execute the grant agreement. On March 7, 2022, the City Manager executed Grant Agreement No. C9803043, for Project No. SW -37-013, in the amount of $5,632,571, with the State of California Department of Parks and Recreation for the Project, effective July 1, 2020. The proposed project will improve El Toyon Park through the construction and/or renovation of existing and new elements, including: shared use paths, shade structures, sports lighting, resurfacing the artificial turf sports field, dog park, scoreboard, community garden, children play structure, community event area, pickleball courts, basketball courts, tennis courts, and park lighting. The project will also implement Low-Impact Development (LID) to improve water quality from urban runoff by installing a water quality basin with biofiltration. The State of California, by and through the Department of Parks and Recreation, is requesting that the City accept and record the Deed Restriction as required by the executed Grant agreement. The Deed Restriction recognizes that the City’s General Plan identifies this site as a park and requires that the use remain consistent with the grant objective (park site) for a minimum of 30 years from the effective date of the Grant Agreement, referred therein as the contract performance period. The project will be completed within El Toyon Park. Staff recommends accepting and approving the recordation of the Deed Restriction. Page 111 of 623 FINANCIAL STATEMENT: N/A RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Health, Environment, and Sustainability ENVIRONMENTAL REVIEW: CEQA Notice of Exemption has been filed County Recorder’s Office. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBITS: Exhibit A - Deed Restriction w/Exhibits Exhibit B - Resolution Page 112 of 623 1 RECORDING REQUESTED BY: California Department of Parks and Recreation Office of Grants and Local Services WHEN RECORDED MAIL TO: Office of Grants and Local Services PO Box 942896 Sacramento, CA 94296-0001 Attn: Karen Sims SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE DEED RESTRICTION I. WHEREAS, the City of National City (hereinafter referred to as “Owner(s)” is/are recorded owner(s) of the real property described in Exhibit A, attached and incorporated herein by reference (hereinafter referred to as the “Property”); and II. WHEREAS, the California Department of Parks and Recreation (hereinafter referred to as “DPR”) is a public agency created and existing under the authority of section 5001 of the California Public Resources Code (hereinafter referred to as the “PRC”). And III. WHEREAS, Owner(s) (or Grantee) applied to DPR for grant funds available pursuant to the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All of 2018 Parks Bond Act, Statewide Park Development and Community Revitalization Program to improve El Toyon Park in National City including, construct an event area, pickleball courts with fencing, community garden, Class I bikeway, walking paths, shade structures, scoreboard, public art, sports warm up area, gateway entry, security cameras, lighting, landscaping and signage throughout the park. Renovate tennis courts with fencing, artificial turf sports field, basketball courts, dog park, playgrounds, adult fitness area, picnic lawn, path, bleachers, parking lots, and restrooms on the Property; and IV. WHEREAS, on July 1, 2020, DPR’s Office of Grants and Local Services conditionally approved Grant SW-37-013, (hereinafter referred to as “Grant”) to improve El Toyon Park in National City including, construct an event area, pickleball courts with fencing, community garden, Class I Page 113 of 623 2 bikeway, walking paths, shade structures, scoreboard, public art, sports warm up area, gateway entry, security cameras, lighting, landscaping and signage throughout the park. Renovate tennis courts with fencing, artificial turf sports field, basketball courts, dog park, playgrounds, adult fitness area, picnic lawn, path, bleachers, parking lots, and restrooms on the Property, subject to, among other conditions, recordation of this Deed Restriction on the Property; and V. WHEREAS, but for the imposition of the Deed Restriction condition of the Grant, the Grant would not be consistent with the public purposes of the 2018 Parks Bond Act, Statewide Park Development and Community Revitalization Program and the funds that are the subject of the Grant could therefore not have been allocated; and VI. WHEREAS, Owner(s) has/ve elected to comply with the Deed Restriction of the Grant, so as to enable Owner(s), to receive the Grant funds and perform the work described in the Grant; NOW, THEREFORE, in consideration of the issuance of the Grant funds by DPR, the undersigned Owner(s) for himself/herself/themselves and for his/her/their heirs, assigns, and successors- in-interest, hereby irrevocably covenant(s) with DPR that the condition of the grant (set forth at paragraph(s) 1 through 5 and in Exhibit B hereto) shall at all times on and after the date on which this Deed Restriction is recorded constitute for all purposes covenants, conditions and restrictions on the use and enjoyment of the Property that are hereby attached to the deed to the Property as fully effective components thereof. 1. DURATION. (a) This Deed Restriction shall remain in full force and effect and shall bind Owner(s) and all his/her/their assigns or successors-in-interest for the period running from July 1, 2020 through June 30, 2050. 2. TAXES AND ASSESMENTS. It is intended that this Deed Restriction is irrevocable and shall constitute an enforceable restriction within the meaning of a) Article XIII, section 8, of the California Constitution; and b) section 402.1 of the California Revenue and Taxation Code or successor statute. Furthermore, this Deed Restriction shall be deemed to constitute a servitude upon and burden to Page 114 of 623 3 the Property within the meaning of section 3712(d) of the California Revenue and Taxation Code, or successor statute, which survives a sale of tax-deeded property. 3. RIGHT OF ENTRY. DPR or its agent or employees may enter onto the Property at times reasonably acceptable to Owner(s) to ascertain whether the use restrictions set forth above are being observed. 4. REMEDIES. Any act, conveyance, contract, or authorization by Owner(s) whether written or oral which uses or would cause to be used or would permit use of the Property contrary to the terms of this Deed Restriction will be deemed a violation and a breach hereof. DPR may pursue any and all available legal and/or equitable remedies to enforce the terms and conditions of this Deed Restriction up to and including a lien sale of the property. In the event of a breach, any forbearance on the part of DPR to enforce the terms and provisions hereof shall not be deemed a waiver of enforcement rights regarding any subsequent breach. 5. SEVERABILITY. If any provision of these restrictions is held to be invalid, or for any reason becomes unenforceable, no other provision shall be affected or impaired. Dated: ______________________, 20 ____ Owner(s) Name(s): CITY OF NATIONAL CITY__ Signed: ________________________________ __BRAD RAULSTON, CITY MANAGER PRINT/TYPE NAME & TITLE OF ABOVE (GRANTEE’S AUTHORIZED REPRESENTATIVE) Page 115 of 623 4 **NOTARY ACKNOWLEDGEMENT ON THE NEXT PAGE** Page 116 of 623 5 State of California County of _______________ On __________________ before me, __________________________, a Notary Public, personally appeared _____________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ______________________________ (Seal) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. Page 117 of 623 Page 118 of 623 Page 119 of 623 Page 120 of 623 Page 121 of 623 DocuSign Envelope ID: 9A8B02FD-93B5-4644-92CF-47CDA6E53F54 Barbara Baker 3/9/2022 Supervisor Page 122 of 623 DocuSign Envelope ID: 9A8B02FD-93B5-4644-92CF-47CDA6E53F54 Page 123 of 623 DocuSign Envelope ID: 9A8B02FD-93B5-4644-92CF-47CDA6E53F54 Page 124 of 623 DocuSign Envelope ID: 9A8B02FD-93B5-4644-92CF-47CDA6E53F54 Page 125 of 623 DocuSign Envelope ID: 9A8B02FD-93B5-4644-92CF-47CDA6E53F54 Page 126 of 623 DocuSign Envelope ID: 9A8B02FD-93B5-4644-92CF-47CDA6E53F54 Page 127 of 623 DocuSign Envelope ID: 9A8B02FD-93B5-4644-92CF-47CDA6E53F54 Page 128 of 623 DocuSign Envelope ID: 9A8B02FD-93B5-4644-92CF-47CDA6E53F54 Page 129 of 623 DocuSign Envelope ID: 9A8B02FD-93B5-4644-92CF-47CDA6E53F54 Supervisor 3/9/2022 Page 130 of 623 RESOLUTION NO. 2022 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA (1) ACCEPTING AND APPROVING THE RECORDATION OF A DEED RESTRICTION WITH THE STATE OF CALIFORNIA, BY AND THROUGH THE CALIFORNIA DEPARTMENT OF PARKS AND RECREATION, FOR EL TOYON PARK IMPROVEMENTS – PROP 68 – SSP PROGRAM; AND (2) AUTHORIZING THE CITY MANAGER TO EXECUTE SAID DEED RESTRICTION WHEREAS, on March 2, 2021, per City Council Resolution No. 2021-14, City Council authorized staff to submit an application for Proposition 68 Statewide Park Development and Community Revitalization Program (SPP) application for the El Toyon Park Project, and authorized the City Manager to execute the grant agreement; and WHEREAS, on March 7, 2022, the City Manager executed Grant Agreement No. C9803043, for Project No. SW -37-013, with the State of California Department of Parks and Recreation for the Project, effective July 1, 2020; and WHEREAS, The proposed project will improve El Toyon Park through the construction and/or renovation of existing and new elements, including: shared use paths, shade structures, sports lighting, resurfacing the artificial turf sports field, dog park, scoreboard, community garden, children play structure, community event area, pickleball courts, basketball courts, tennis courts, and park lighting. The project will also implement Low-Impact Development (LID) to improve water quality from urban runoff by installing a water quality basin with biofiltration; and WHEREAS, the State of California, by and through the Department of Parks and Recreation, is requesting that the City accept and record the Deed Restriction as required by the executed Grant agreement; and WHEREAS, the Deed Restriction recognizes that the City’s General Plan identifies this site as a park and requires that the use remain consistent with the grant objective (park site) for a minimum of 30 years from the effective date of the Grant Agreement; and WHEREAS, the project will be completed within El Toyon Park; and WHEREAS, City staff requests acceptance and approving the recordation of the Deed Restriction; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1: Accept and approve the recordation of a Deed Restriction with the State of California (attached as Exhibit 1 to the Agenda Report), by and through the California Department of Parks and Recreation, for El Toyon Park Improvements – Prop 68 – SPP Program. Section 2: Authorize the City Manager to execute said Deed Restriction. Page 131 of 623 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 6th day of December, 2022. Alejandra Sotelo-Solis, Mayor ATTEST: Luz Molina, City Clerk APPROVED AS TO FORM: Barry J. Schultz, Interim City Attorney Page 132 of 623 AGENDA REPORT Department: City Clerk's Office Prepared by: Roberto Yano, Director of Public Works/City Engineer Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Adopt a Resolution accepting and approving the recordation of a Deed Restriction with the State of California, for Kimball Park Playground Improvements. RECOMMENDATION: Adopt a Resolution Entitled, Resolution of the City Council of the City of National City, California, 1) accepting and approving the recordation of a Deed Restriction with the State of California, by and through the California Department of Parks and Recreation, for Kimball Park Playground Improvements – Prop 68 – Per Capita Program; and 2) authorizing the City Manager to execute said Deed Restriction. BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: On March 2, 2021, per City Council Resolution No. 2021-13, City Council authorized staff to submit an application for Proposition 68 Per Capita Program application for the Kimball Park Playground Improvements Project, and authorized the City Manager to execute the grant agreement. On May 3, 2022, the City Manager executed Grant Agreement Nos. C9801582 and C9802283, for Project Nos. 18-37-024, in the amount of $177,952, and 18-37-025, in the amount of $38,081, respectively, with the State of California Department of Parks and Recreation for the Project, effective July 1, 2018. The proposed project will remove and dispose of the existing playground equipment and wood mulch at Kimball Park and install a new play structure, a teeter tunnel, a unity dome, swings, and new surfacing. The State of California, by and through the Department of Parks and Recreat ion, is requesting that the City accept and record the Deed Restriction as required by the executed Grant agreement. The Deed Restriction recognizes that the City’s General Plan identifies this site as a park and requires that the use remain consistent wi th the grant objective (park site) for a minimum of 30 years from the effective date of the Grant Agreement, referred therein as the contract performance period. The project will be completed within Kimball Park. Staff recommends accepting and approving the recordation of the Deed Restriction. Page 133 of 623 FINANCIAL STATEMENT: N/A RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Parks, Recreation and Library ENVIRONMENTAL REVIEW: CEQA Notice of Exemption has been filed County Recorder’s Office. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBITS: A. Deed Restriction w/Exhibits B. Resolution Page 134 of 623 1 RECORDING REQUESTED BY: California Department of Parks and Recreation Office of Grants and Local Services WHEN RECORDED MAIL TO: Office of Grants and Local Services PO Box 942896 Sacramento, CA 94296-0001 Attn: Karen Sims SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE DEED RESTRICTION I. WHEREAS, the City of National City (hereinafter referred to as “Owner(s)” is/are recorded owner(s) of the real property described in Exhibit A, attached and incorporated herein by reference (hereinafter referred to as the “Property”); and II. WHEREAS, the California Department of Parks and Recreation (hereinafter referred to as “DPR”) is a public agency created and existing under the authority of section 5001 of the California Public Resources Code (hereinafter referred to as the “PRC”). And III. WHEREAS, Owner(s) (or Grantee) applied to DPR for grant funds available pursuant to the California Drought, Water, Parks, Climate, Coastal Protection, and Outdoor Access for All of 2018 Parks Bond Act, 2018 Parks Bond Act Per Capita Program to replace playground with play structure, surfacing, and play elements on the Property; and IV. WHEREAS, on July 1, 2018, DPR’s Office of Grants and Local Services conditionally approved Grants 18-37-024 and 18-37-025, (hereinafter referred to as “Grant”) to replace playground with play structure, surfacing, and play elements on the Property, subject to, among other conditions, recordation of this Deed Restriction on the Property; and V. WHEREAS, but for the imposition of the Deed Restriction condition of the Grant, the Grant would not be consistent with the public purposes of the 2018 Parks Bond Act, 2018 Parks Bond Act Page 135 of 623 2 Per Capita Program and the funds that are the subject of the Grant could therefore not have been granted; and VI. WHEREAS, Owner(s) has/ve elected to comply with the Deed Restriction of the Grant, so as to enable Owner(s), to receive the Grant funds and perform the work described in the Grant; NOW, THEREFORE, in consideration of the issuance of the Grant funds by DPR, the undersigned Owner(s) for himself/herself/themselves and for his/her/their heirs, assigns, and successors- in-interest, hereby irrevocably covenant(s) with DPR that the condition of the grant (set forth at paragraph(s) 1 through 5 and in Exhibit B hereto) shall at all times on and after the date on which this Deed Restriction is recorded constitute for all purposes covenants, conditions and restrictions on the use and enjoyment of the Property that are hereby attached to the deed to the Property as fully effective components thereof. 1. DURATION. (a) This Deed Restriction shall remain in full force and effect and shall bind Owner(s) and all his/her/their assigns or successors-in-interest for the period running from July 1, 2018 through June 30, 2048. 2. TAXES AND ASSESMENTS. It is intended that this Deed Restriction is irrevocable and shall constitute an enforceable restriction within the meaning of a) Article XIII, section 8, of the California Constitution; and b) section 402.1 of the California Revenue and Taxation Code or successor statue. Furthermore, this Deed Restriction shall be deemed to constitute a servitude upon and burden to the Property within the meaning of section 3712(d) of the California Revenue and Taxation Code, or successor statute, which survives a sale of tax-deeded property. 3. RIGHT OF ENTRY. DPR or its agent or employees may enter onto the Property at times reasonably acceptable to Owner(s) to ascertain whether the use restrictions set forth above are being observed. 4. REMEDIES. Any act, conveyance, contract, or authorization by Owner(s) whether written or oral which uses or would cause to be used or would permit use of the Property contrary to the terms of this Deed Restriction will be deemed a violation and a breach hereof. DPR may pursue any and Page 136 of 623 3 all available legal and/or equitable remedies to enforce the terms and conditions of this Deed Restriction up to and including a lien sale of the property. In the event of a breach, any forbearance on the part of DPR to enforce the terms and provisions hereof shall not be deemed a waiver of enforcement rights regarding any subsequent breach. 5. SEVERABILITY. If any provision of these restrictions is held to be invalid, or for any reason becomes unenforceable, no other provision shall be affected or impaired. Dated: ______________________, 20 ____ Owner(s) Name(s): _CITY OF NATIONAL CITY Signed: ________________________________ _BRAD RAULSTON, CITY MANAGER_ PRINT/TYPE NAME & TITLE OF ABOVE (GRANTEE’S AUTHORIZED REPRESENTATIVE) **NOTARY ACKNOWLEDGEMENT ON THE NEXT PAGE** Page 137 of 623 4 State of California County of _______________ On __________________ before me, __________________________, a Notary Public, personally appeared _____________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ______________________________ (Seal) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. Page 138 of 623 Page 139 of 623 Page 140 of 623 Page 141 of 623 DocuSign Envelope ID: 9B960EEB-9612-490B-920F-EE3C1A65CE6F 5/4/2022 Page 142 of 623 DocuSign Envelope ID: 9B960EEB-9612-490B-920F-EE3C1A65CE6F Page 143 of 623 DocuSign Envelope ID: 9B960EEB-9612-490B-920F-EE3C1A65CE6F Page 144 of 623 DocuSign Envelope ID: 9B960EEB-9612-490B-920F-EE3C1A65CE6F Page 145 of 623 DocuSign Envelope ID: 9B960EEB-9612-490B-920F-EE3C1A65CE6F Page 146 of 623 DocuSign Envelope ID: 9B960EEB-9612-490B-920F-EE3C1A65CE6F Page 147 of 623 DocuSign Envelope ID: 9B960EEB-9612-490B-920F-EE3C1A65CE6F Page 148 of 623 DocuSign Envelope ID: 9B960EEB-9612-490B-920F-EE3C1A65CE6F 5/4/2022 Page 149 of 623 DocuSign Envelope ID: 7B9E1EB9-6AE2-4304-8EAC-30A9BC06DAE6 5/4/2022 Page 150 of 623 DocuSign Envelope ID: 7B9E1EB9-6AE2-4304-8EAC-30A9BC06DAE6 Page 151 of 623 DocuSign Envelope ID: 7B9E1EB9-6AE2-4304-8EAC-30A9BC06DAE6 Page 152 of 623 DocuSign Envelope ID: 7B9E1EB9-6AE2-4304-8EAC-30A9BC06DAE6 Page 153 of 623 DocuSign Envelope ID: 7B9E1EB9-6AE2-4304-8EAC-30A9BC06DAE6 Page 154 of 623 DocuSign Envelope ID: 7B9E1EB9-6AE2-4304-8EAC-30A9BC06DAE6 Page 155 of 623 DocuSign Envelope ID: 7B9E1EB9-6AE2-4304-8EAC-30A9BC06DAE6 Page 156 of 623 DocuSign Envelope ID: 7B9E1EB9-6AE2-4304-8EAC-30A9BC06DAE6 5/4/2022 Page 157 of 623 RESOLUTION NO. 2022 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA; (1) ACCEPTING AND APPROVING THE RECORDATION OF A DEED RESTRICTION WITH THE STATE OF CALIFORNIA, BY AND THROUGH THE CALIFORNIA DEPARTMENT OF PARKS AND RECREATION, FOR KIMBALL PARK PLAYGROUND IMPROVEMENTS – PROP 68 – PER CAPITA PROGRAM; AND (2) AUTHORIZING THE CITY MANAGER TO EXECUTE SAID DEED RESTRICTION WHEREAS, on March 2, 2021, per City Council Resolution No. 2021-13, City Council authorized staff to submit an application for Proposition 68 Per Capita Program application for the Kimball Park Playground Improvements Project, and authorized the City Manager to execute the grant agreement; and WHEREAS, on March 3, 2022, the City Manager executed Grant Agreements No. C9801582 and C9802283, for Project Nos. 18-37-024 and 18-37-025, respectively, with the State of California Department of Parks and Recreation for the Project, effective July 1, 2018; and WHEREAS, the proposed project will remove and dispose of the existing playground equipment and wood mulch at Kimball Park and install a new play structure, a teeter tunnel, a unity dome, swings, and new surfacing; and WHEREAS, the State of California, by and through the Department of Parks and Recreation, is requesting that the City accept and record the Deed Restriction as required by the executed Grant agreement; and WHEREAS, the Deed Restriction recognizes that the City’s General Plan identifies this site as a park and requires that the use remain consistent with the grant objective (park site) for a minimum of 30 years from the effective date of the Grant Agreement; and WHEREAS, the project will be completed within Kimball Park; and WHEREAS, City staff requests acceptance and approving the recordation of the Deed Restriction; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1: Accept and approve the recordation of a Deed Restriction with the State of California (attached as Exhibit 1 to the Agenda Report), by and through the California Department of Parks and Recreation, for Kimball Park Playground Improvements – Prop 68 – Per Capita Program. Section 2: Authorize the City Manager to execute said Deed Restriction. Page 158 of 623 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 6th day of December, 2022. Alejandra Sotelo-Solis, Mayor ATTEST: Luz Molina, City Clerk APPROVED AS TO FORM: Barry J. Schultz, Interim City Attorney Page 159 of 623 AGENDA REPORT Department: City Clerk's Office Prepared by: Roberto Yano, Director of Public Works/City Engineer Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Project close-out and Notice of Completion for the National City Boulevard Bikeway Project, CIP No. 19-18 RECOMMENDATION: Adopt a Resolution Entitled, "Resolution of the City Council of the City of National City, California, 1) Accepting the work performed by Eagle Paving, Inc. for the National City Boulevard Bikeway Project, CIP No. 19-18; 2) approving the final contract amount of $714,242.39; 3) ratifying the release of retention in the amount of $35,300.17; and 4) ratifying the signing of the Notice of Completion for the project.” BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: The National City Boulevard Bikeway improved the safety for people walking and biking in the southern part of the city where it was recently constructed. The project provides nearly 0.2 miles of enhanced (buffered) bike lanes along 33rd Street, from Hoover Avenue to National City Blvd. The project implemented nearly 0.4 miles of Class ll facilities along National City Blvd., from 33rd Street to C Street, at the southern city limit with the City of Chula Vista. The project also included traffic calming features, decreased lane widths, bike/pedestrian improvements at freeway on/off ramps, bike boxes, lighting, and pedestrian safety enhancements. On October 26, 2021, the bid solicitation was posted on PlanetBids, a free public electronic bidding system for contractors. On October 29, 2021 and November 1, 2021, the bid solicitation was advertised in local newspapers. On November 16, 2021, nine (9) bids were rehe ceived by the 1:00 p.m. deadline. LC Paving & Sealing Inc. was the apparent low bidder with a total bid amount of $607,357.52. Upon review of the bid documents submitted, LC Paving & Sealing Inc. failed to submit all required bid documents before the bid opening as required by the Construction Specifications Instruction to Bidders and 2-1.3 Award of Contract. On November 29, 2021, LC Paving & Sealing Inc. was notified about this irregularity that resulted in their bid being deemed non-responsive. Subsequently, staff reviewed the bid documents submitted by the second lowest bidder, Eagle Paving Company, Inc. Upon review of all documents submitted by Eagle Paving Company, Inc.’s bid was deemed responsive and they were the lowest responsible bidder qualified to perform the work as described in the project specifications. Page 160 of 623 On January 18, 2022, the City Council adopted Resolution No. 2022-04 awarding the contract to Eagle Paving Company, Inc., in the not-to-exceed amount of $650,760.00 and authorizing a 15% contingency of up to $97,614.00 for any unforeseen changes. The Notice to Proceed with construction was issued on March 25, 2022. Construction started on June 4, 2022 and was completed on October 14, 2022. The change orders issued for this project are detailed in the Final Contract Bal ance Report (see attached). The change orders increased the contract by $63,482.39. This results in a 9.8% contract increase for a final contract balance of $714,242.39. As a result of satisfactory completion of the project, staff recommends that City Council, 1) accept the work performed by Eagle Paving, Inc. for the National City Boulevard Bikeway Project, CIP No. 19-18; 2) approve the final contract amount of $714,242.39; 3) ratify the release of retention in the amount of $35,300.17; and 4) ratify the signing of the Notice of Completion for the project. The Notice of Completion will be filed with the San Diego County Recorder’s Office. FINANCIAL STATEMENT: N/A RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Transportation Choices and Infrastructure ENVIRONMENTAL REVIEW: This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBITS: Exhibit A - Location Map Exhibit B - Notice of Completion Exhibit C - Final Contract Balance Report Exhibit D - Resolution Page 161 of 623 Project Plan ViewInter-City Bike Connections Active Transportation Grant Program Capital Grant Application Project Site PlanNational City Blvd Inter-City Bike Connection Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community Sweetwater RiverSweetwater RiverBike PathBike Path Sweetwater RiverBike Path B a y s h o r e B i k e w a y B ay s hor e Bi k e w ay B a y s h o r e B i k e w a y C StC StC St 33rd St33rd St Ho o v e r A v e Hoover Ave 33rd St Ho o v e r A v e Na t i o n a l C i t y B l National City Bl Na t i o n a l C i t y B l City of Chula VistaCity of Chula VistaCity of Chula Vista 54 54 Enhanced (Buffered) Class II - Bike Lanes Broadway from C St to G St (In Final Design) 35th St35th St35th St Proposed Class II - Bike Lanes (Extents of Project) Connection to Regional Bikeway Existing Class I - Regional Bike Path (SANDAG) Existing Class II - Bike Lanes Existing Class III - Bike Route Number of Bicycle and Pedestrian Collisions (2009-2016) City of National CityCity of National CityCity of National City 0 400200 Feet ² ! 1 ! # Class II - Bike Lanes ! 2 ! 1 Page 162 of 623 RECORDING REQUESTED BY WHEN RECORDED MAIL TO: NAME: CITY OF NATIONAL CITY ADDRESS: 1243 NATIONAL CITY BOULEVARD NATIONAL CITY, CA 91950 NOTICE OF COMPLETION CALIFORNIA CIVIL CODE SECTION 3093 NOTICE IS HEREBY GIVEN of the completion on October 14, 2022, of the: National City Boulevard Bikeway, CIP No. 19-18 Work of improvement or portion of work of improvement under construction or alteration. W. 33rd St. and National City Boulevard National City CA 91950 Street Address City State Zip Code The undersigned owns the following interest or estate in said property: Owner in fee Nature of the interest or estate of owner (mortgagor, lessee, etc.) Said work of improvement was performed on the property pursuant to a contract with Eagle Paving Company, Inc. Name of Original Contractor The following work and material were supplied: Labor provided: General Laborer, Electrician. Materials: Concrete, asphalt, slurry seal, Grid Smart Camera, Vehicle & Bicycle Loops, Thermoplastic Paint. Equipment: paving and milling equipment. General statement of kind of labor, services, equipment or materials The names and addresses of co-owners are: N/A Joint tenants, tenants in common, or other owners Dated: December 6, 2022; ______________________________________________ Signature of Owner City of National City, 1243 National City Blvd., National City, CA 91950 I, the undersigned, say: I have read the foregoing Notice of Completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury that the forgoing is true and correct. Executed on December 6, 2022, at, National City, California. Signature: ______________________________ ALEJANDRA SOTELO-SOLIS, MAYOR Noc09-05 Page 163 of 623 FINAL CONTRACT BALANCE DATE: NOVEMBER 3rd, 2022 PROJECT: NATIONAL CITY BOULEVARD BIKEWAY FY 21-22 CIP No. 19-18 TO: EAGLE PAVING, INC 12700 STOWE DR STE 200 POWAY, CA 92064-8868 ORIGINAL CONTRACT AMOUNT: $650,760.00 START DATE: June 4th, 2022 COMPLETION DATE: October 14th, 2022 ORIGINAL CONTRACT LENGTH: 45 Working Days EXTENTION OF WORKDAYS: 5 Working Days TOTAL CONTRACT TIME: 50 Working Days WORKING DAYS SUSPENDED: 41 Working Days FINAL CONTRACT AMOUNT: $714,242.39 DESCRIPTION: The Final Contract Balance reports final line item amounts and summarizes all change orders to produce a final contract amount. CHANGE ORDERS AND LINE ITEM ADJUSTMENTS: Change Order #1 replaced the existing storm drain grates on National City Boulevard at STA 16+50 (1ea) and STA 26+00 (2ea) with Type 24-12x grates in accordance with Caltrans Standard Plan D77B. The item “Replace Existing Storm Drain Grate, Type 18-9X” was shown with a quantity of 3 EA at three separate locations on the plans. Field measurements of the existing grates along National City Boulevard at Stations 16+50 and 26+00 showed that the existing frame size was 24" and not 18" as indicated on the plans. In addition, the existing frame at Station 26+00 was a double grate whereas the plans only showed replacing a single grate. This Change order compensated the contractor for the upsizing of the 2 of the grates for a 24" frame and one complete 24" grate not originally called out on the plans. This Change Order total amount is $1,776.00. Change Order #2 provided procurement and installation of preformed thermoplastic conflict striping at the locations shown on the plans and in accordance with the details "DRIVEWAY/BUS STOP GREEN BIKE LANE CONFLICT MAKRING DETAIL" and "INTERSECTION EXTENSION GREEN BIKELANE CONFLICT MARKING DETAIL" shown on sheet 7 of the plans. The plans showed the driveway, bus stop and intersection conflict markings to be painted with green traffic paint. The City wished to upgrade these conflict markings to be installed as preformed thermoplastic for reduced long term maintenance costs and increased visibility for Page 164 of 623 FINAL CONTRACT BALANCE NATIONAL CITY BOULEVARD BIKEWAY CIP No. 19-18 the public. This change order compensated the contractor for changing from green painted conflict markings to thermoplastic preformed conflict markings. This Change Order total amount is $16,516.00. Change Order #3 installed a Type B-3 curb with raised median at the intersection of 33rd Street and Hoover Avenue as shown in the plans. The bid quantity of Type B-3 curb for this raised median was scheduled for 15 linear feet. The actual quantity shown in the plans and installed in the field was 148 linear feet, resulting in an increase in quantity of 133 linear feet. This Change Order compensated the contractor for the additional quantity of Type B-3 Curb installed and adjusted the unit price for the quantity over 125% of the bid item quantity. This Change Order amount is $4,030.16. Change Order #4 modified the limits of the over excavation; paving; and slurry seal limits of work, as well as performed crack sealing within the limits for slurry seal work. Prior to the reconstruction of National City Boulevard, it was determined by the City that additional overlay was required south of the Overcrossing bridge and north of the intersection at 35th street. It was also noted that the limits necessary to perform full depth construction were not as large as shown on the plans. Therefore, the paving limits were changed to reconstruct a portion of what was shown on the plans and overlay a portion of the work that was originally shown as slurry sealed. Additionally, the contract Specifications did not require crack fill prior to the slurry seal operation. This Change order compensated the contractor to perform these changes in limits of work and perform crack sealing within the limits for slurry seal. This Change Order total amount is $12,813.30. Changer Order #5 installed nine (9) additional traffic loop detectors not anticipated in the plans and installed concrete stub-outs at five (5) locations of new loops required per the plans. The addition of two (2) loops for SB National City Blvd were installed due to the paving limits changing from the plans in order to rehabilitate the existing pavement surrounding the loops. The addition of seven (7) loops at the SR-54 off-ramp was required to maintain Caltrans standard loop spacing of 10’ out-to-out per Figure 2-10 of the Caltrans Ramp Metering Design Manual. The striping changes at the off ramp did not give the proper clear distance between the stop bar and the loops, therefore Caltrans required new loops at the proper spacing be installed. The existing loops were not visible due to being overlaid by a previous Caltrans maintenance project, and Caltrans maintenance located the existing loops to determine that they did not comply with the new loop installed per the plans. This Change Order amount is $23,697.63. Change Order #6 installed two (2) thermoplastic "Keep Cear" pavement markings with associated R10-7 signs (1ea) along National City Boulevard at the intersection with 33rd Street and the intersection with the cross walk from the SR-54 off-ramp. The merging of the two southbound lanes on National City Boulevard required for this project, and in accordance with the plans at 33rd Street, generated an accumulation of vehicles at the intersection. The queue of drivers, waiting at the light in this location, blocks and delays the northbound vehicles from making the left turn onto 33rd Street from National City Boulevard. Pedestrians/bicyclists are also impacted from this queue, at the new crosswalk required here for the project. The City wished to add additional striping instructing these intersections be kept clear, as well as signage reiterating it per the request of Caltrans. This change order compensated the contractor for the additional striping and signage. This Change Order amount is $4,649.30. All Change Orders listed above increased the total contract amount $63,482.39. CONTRACT ADJUSTMENT: As a result of the above change orders and line item adjustments, the contract price is adjusted as follows: Page 165 of 623 FINAL CONTRACT BALANCE NATIONAL CITY BOULEVARD BIKEWAY CIP No. 19-18 1. The final contract price is adjusted to $714,242.39. 2. As a result of the satisfactory completion of said project, a retention amount of $35,300.17 is set for invoice processing and payment upon the receipt of signatures and City Council’s ratification of this agreement and the Notice of Completion. This document and its purpose to balance payment shall be considered full compensation for furnishing and installing the materials, labor, tools and equipment, profit, overhead, and all incidentals for performing the work described above. EAGLE PAVING, INC will not be entitled to damages or additional payment for delays as described in the 2012 edition of the Standard Specifications for Public Works Construction, Section 6-6.3, for performing the work as described above. Page 166 of 623 RESOLUTION NO. 2022 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA; 1) ACCEPTING THE WORK PERFORMED BY EAGLE PAVING, INC. FOR THE NATIONAL CITY BOULEVARD BIKEWAY PROJECT, CIP NO. 19-18; 2) APPROVING THE FINAL CONTRACT AMOUNT OF $714,242.39; 3) RATIFYING THE RELEASE OF RETENTION IN THE AMOUNT OF $35,300.17; AND 4) RATIFYING THE SIGNING OF THE NOTICE OF COMPLETION FOR THE PROJECT. WHEREAS, The National City Boulevard Bikeway project will provide nearly 0.2 miles of enhanced (buffered) bike lanes along 33rd Street from Hoover Avenue to National City Blvd. (“Project”); and WHEREAS, the Project will implement nearly 0.4 miles of Class ll facilities along National City Blvd. from 33rd Street to C Street at the southern city limit with City of Chula Vista; and WHEREAS, the Project will include traffic calming features, decreased lane widths, bike/pedestrian improvements at freeway on/off ramps, bike boxes, lighting, and pedestrian safety enhancements; and WHEREAS, the Project will improve the safety for people walking and biking; and WHEREAS, on October 26, 2021, the bid solicitation was posted on PlanetBids, a free public electronic bidding system for contractors; and WHEREAS, on October 29, 2021 and November 1, 2021, the bid solicitation was advertised in local newspapers; and WHEREAS, on November 16, 2021, nine (9) bids were received by the 1:00 p.m. deadline. LC Paving & Sealing Inc. was the apparent lowest bidder with a total bid amount of $607,357.52; and WHEREAS, upon review of the bid documents submitted, LC Paving & Sealing Inc. failed to submit all required bid documents before the bid opening as required by the Construction Specifications Instruction to Bidders and 2-1.3 Award of Contract; and WHEREAS, on November 29, 2021, LC Paving & Sealing Inc. was notified about this irregularity that resulted in their bid being deemed non-responsive; and WHEREAS, subsequently, staff reviewed the bid documents submitted by the second lowest bidder, Eagle Paving Company, Inc; and WHEREAS, upon review of all documents submitted Eagle Paving Company, Inc.’s bid was deemed responsive and they are the lowest responsible bidder qualified to perform the work as described in the project specifications; and WHEREAS, on January 18, 2022, the City Council adopted Resolution No. 2022-04 awarding the contract to Eagle Paving Company, Inc., in the not-to-exceed amount of $650,760.00; and Page 167 of 623 WHEREAS, the Notice to Proceed with construction was issued on March 25, 2022. Construction started on June 4, 2022 and was completed on October 14, 2022; and WHEREAS, the change orders issued for this Project are detailed in the Final Contract Balance Report; and WHEREAS, the change orders increased the contract by $63,482.39; and WHEREAS, this results in a 9.8% contract increase for a final contract balance of $714,242.39. 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 authorizes accepting the work performed by Eagle Paving, Inc. for the National City Boulevard Bikeway Project, CIP No. 19-18; Section 2: Approving the final contract amount of $714,242.39. Section 3: Ratifying the release of retention in the amount of $35,300.17. Section 4: Ratifying the signing of the Notice of Completion for the Project. Section 5: 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 6th day of December 2022. Alejandra Sotelo-Solis, Mayor ATTEST: Luz Molina, City Clerk APPROVED AS TO FORM: Barry J. Schultz, Interim City Attorney Page 168 of 623 AGENDA REPORT Department: City Clerk's Office Prepared by: Roberto Yano, Director of Public Works/City Engineer Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Accept Bid Received on November 10, 2022, and Award a Contract to SWCS Inc. for the Police Pistol Range HVAC and Safety Improvements CIP No. 20-05. RECOMMENDATION: Adopt a Resolution Entitled, "Resolution of the City Council of the City of National City, California, 1) rejecting bid received on September 8, 2022 for the Police Pistol Range Safety Improvements; 2) accepting bids received on November 10, 2022; 3) awarding a contract to SWCS Inc. in the not-to-exceed amount of $624,111 for the Police Pistol Range HVAC and Safety Improvements CIP No. 20-05; 4) authorizing a 15% contingency in the amount of $93,617 for any unforeseen changes; and 5) authorizing the Mayor to execute the contract. BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: The firing range (Range), which is located within the National City Police Department headquarters, is being updated to address insufficient air filtration of metal contaminated dust from the Range and to address/enhance laminar air flow during multiple user training exercises. The work is being performed under a notice of violation - corrective action agreement with the San Diego County Department of Environmental Health (DEH). At the conclusion of the installation and during system commissioning activities, the DEH will inspect the final constructed system and confirm that it meets National Institute of Occupational Safety and Health (NIOSH) specifications and has adequate dust handling and filtration to eliminate discharge of metals from the HVAC exhaust. On August 18, 2022, a bid solicitation was posted on PlanetBids, a free public electronic bidding system for contractors. On September 8, 2022, only one (1) bid was received by the 2:00 p.m. deadline. The apparent low bidder was SWCS Inc. and the total bid amount was $637,816. Staff reviewed the bid and all documents submitted and subsequently rejected it due to the fact that the total bid amount was higher than the estimate prepared by the design engineer and the budget allocated by the City for this project. Staff consulted with the project manager and industry experts to obtain feedback on why there was little interest in bidding this project from qualified contractors. The information received indicated that the title of the project did not capture the extent of the scope and appeared to be very specialized. Following the outcome of the initial bid opening, on October 20, 2022, a new bid solicitation was posted on PlanetBids, with a revised project title and additional scope clarifications. Page 169 of 623 On November 10, 2022, one (1) bid was received by the 2:00 p.m. deadline. SWCS Inc. was the apparent lowest bidder with a total bid amount of $624,111. Upon review of all documents submitted, SWCS Inc.’s bid was deemed responsive and they are the lowest responsible bidder qualified to perform the work as described in the project specifications. Although the process did not result in additional bidders nor a significant cost reduction, staff’s recommendation is to proceed with this outcome. Supply chain impacts on equipment procurement timelines, testing and certification requirements for regulatory compliance, specialized technical work involved, rental expense of offsite firing range use, and further inflationary risk impacting pricing are all the factors that staff has considered in this evaluation. Staff recommends awarding a contract to SWCS Inc. in the amount not-to-exceed $624,111 and authorizing a 15% contingency in the amount of $93,617 to address any unforeseen conditions that may arise. Attached are the bid opening summary sheet and a line item summary of the bid. Also attached is the Owner-Contractor Agreement. Construction is estimated to be completed in Summer of 2023. Typically, construction will begin four to six weeks after City Council approves award of contract to allow for coordination efforts, as well as contractor mobilization. It is expected that the type of equipment and materials required for this project will have long lead times, therefore a better timeline will be available after contract award. Updates will be provided on the City’s CIP dashboard at: https://www.nationalcityca.gov/government/engineering-public-works. FINANCIAL STATEMENT: Contract Award - $624,111 Expenditure Account No. 001-409-500-598-1500 - $114,111 Expenditure Account No. 001-416-030-299-0000 - $510,000 15% Contingency - $93,617 Expenditure Account No. 001-409-500-598-1500 RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Public Safety ENVIRONMENTAL REVIEW: CEQA Notice of Exemption will be filed with the County Recorder’s Office prior to construction. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBITS: Exhibit A - Bid Opening Summary Pistol Range HVAC Exhibit B - Bidders Summary Exhibit C - Owner-Contract Agreement – SWCS Inc. Exhibit D - Resolution Page 170 of 623 BID OPENING SUMMARY NAME: Police Pistol Range HVAC and Safety Improvements CIP NO: 20-05 DATE: November 10, 2022 TIME: 2:00 P.M. ESTIMATE: $300,000 PROJECT ENGINEER: Dennis Davies, P.E. NO. BIDDER’S NAME BID AMOUNT BID SECURITY - BOND 1 SWCS Inc. 11653 Riverside Dr. Ste. 153 Lakeside, California 92040 $624,111 Bond Page 171 of 623 Bid Item Summary for Police Pistol Range HVAC and Safety Improvements – SWCS Inc. Page 172 of 623 Page 173 of 623 Page 174 of 623 Page 175 of 623 Page 176 of 623 Page 177 of 623 Page 178 of 623 Page 179 of 623 RESOLUTION NO. 2022 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, 1) REJECTING BID RECEIVED ON SEPTEMBER 8, 2022 FOR THE POLICE PISTOL RANGE SAFETY IMPROVEMENTS; 2) ACCEPTING BIDS RECEIVED ON NOVEMBER 10, 2022; 3) AWARDING A CONTRACT TO SWCS INC. IN THE NOT-TO-EXCEED AMOUNT OF $624,111 FOR THE POLICE PISTOL RANGE HVAC AND SAFETY IMPROVEMENTS CIP NO. 20-05; 4) AUTHORIZING A 15% CONTINGENCY IN THE AMOUNT OF $93,617 FOR ANY UNFORESEEN CHANGES; AND 5) AUTHORIZING THE MAYOR TO EXECUTE THE CONTRACT WHEREAS, the Police Pistol Range requires upgrades to the air filtration system to meet National Institute of Occupational Safety and Health Standards Department; and WHEREAS, on August 18, 2022, the bid solicitation was posted on PlanetBids, a free public electronic bidding system for contractors; and WHEREAS, on August 22, 2022 and August 23, 2022, the bid solicitation was advertised in local newspapers; and WHEREAS, on September 8, 2022, one (1) bids were received by the 2:00 p.m. deadline; and WHEREAS, upon a review of all documents submitted, staff rejected the apparent lowest bidder since the total cost of construction was higher than the engineer’s estimate and the budget allocated by the City for this project; and WHEREAS, as a result of this outcome, on October 20, 2022, staff re-advertised the project on PlanetBids with a revised project title and scope of work; and WHEREAS, on October 25, 2022 and October 26, 2022, the bid solicitation was advertised in local newspapers; and WHEREAS, on November 10, 2022, one (1) bid was received by the 2:00 p.m. deadline; and WHEREAS, upon a review of all documents submitted, SW CS Inc.’s, bid was deemed responsive and the lowest responsible bidder qualified to perform the work as described in the project specifications; and WHEREAS, City staff recommends 1) rejecting bid received on September 8, 2022 for the Police Pistol Range Safety Improvements; 2) accepting bids received on November 10, 2022; 3) awarding a contract to SWCS Inc. in the not-to-exceed amount of $624,111 for the Police Pistol Range HVAC and Safety Improvements CIP No. 20 -05; 4) authorizing a 15% contingency in the amount of $93,617 for any unforeseen changes; and 5) authorizing the Mayor to execute the contract. Page 180 of 623 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 authorizes the Mayor to execute the contract with SWCS Inc. for $624,111 for the Police Pistol Range HVAC and Safety Improvements, CIP No. 20-05. Section 2: Authorizes a 15% contingency in the amount of $93,617 for any unforeseen changes. Section 3: Authorizes rejecting bid received on September 8, 2022 and accepting bid received on November 10, 2022. Section 4: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. PASSED and ADOPTED this 6th day of December, 2022. Alejandra Sotelo-Solis, Mayor ATTEST: Luz Molina, City Clerk APPROVED AS TO FORM: Barry Schultz, Interim City Attorney Page 181 of 623 AGENDA REPORT Department: Administrative Services/Finance Prepared by: Ron Gutlay, Accountant Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Investment Report for the quarter ended September 30, 2022. RECOMMENDATION: Accept and File the Investment Report for the Quarter ended September 30, 2022. BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: The California Government Code (§53646(b)) requires that, when the Treasurer or the Chief Fiscal Officer of a local agency renders to the legislative body of the agency a quarterly report on the agency’s investment portfolio, such report shall include the following information regarding all securities, investments, and moneys held by the local agency: type of investment; issuer (bank or institution); date of maturity; dollar amount invested; and current market valuation as of the date of the report. In addition, the Government Code (§53646(b)(2)) requires that the report state the City’s compliance with its investment policy and include a statement regarding the ability of the local agency to meet its pool’s ability to meet its expenditure requirements Code (§53646(b)(3)). OVERVIEW OF CITY INVESTMENTS The City’s pooled investment portfolio balance as of September 30, 2022 is summarized below and compared to the balance as of September 30, 2021. 1 actual cost of investments 2 amount at which the investments could be sold Table 1 9/30/2022 9/30/2021 Book Value 1 116,823,818$ 87,964,366$ Market Value 2 111,966,264$ 88,121,562$ Page 182 of 623 The assets of the City of National City’s investment portfolio are managed by Chandler Asset Management which represents the portion of the assets, 31.33%, the California Treasurer’s Local Agency Investment Fund (LAIF), 37.42%, and the San Diego County Treasurer's Pooled Money Fund (“San Diego County Pool”), 31.25%. The San Diego County Pool and LAIF are liquid investment pools that allow participants to earn market rate returns, while retaining access to funds within 24 to 48 hours of a withdrawal request with no penalty. The City’s assets managed by Chandler Asset Management may be liquidated and withdrawn at any time. However, these investments likely do not provide the short liquidity (i.e., quick access to funds) of the pooled money funds, and liquidation of these investments is at the risk of loss and/or penalty to the City. Summaries of the City’s investment portfolio are illustrated below. INVESTMENT PORTFOLIO SUMMARY BY ISSUER/MANAGER As of September 30, 2022 1 includes accrued interest 2 includes LAIF participation factor of 0.980760962 3 calculated on 30/360 basis Table 2 Total Market % of Issuer/Manager Book Value Market Value1 YTM Portfolio Chandler Asset Management 37,511,841 35,083,260 4.35%31.33% County of San Diego 36,733,657 34,989,149 1.80%31.25% Local Agency Investment Fund 42,578,320 41,893,855 1.53%37.42% Totals for September 30, 2022 $116,823,818 $111,966,264 100.00% 32 Chandler Asset Management $35,083,260 County of San Diego $34,989,149 LAIF $41,893,855 TOTAL MARKET VALUE $111,966,264 Page 183 of 623 INVESTMENT PERFORMANCE BY ISSUER/MANAGER For the Quarter Ended September 30, 2022 1 includes accrued interest 2 total include deposits and (withdrawals) as of: 7/20/2022 $14,500,000 3 annualized 4 weighted Economic Update: “Market volatility has intensified as financial conditions tighten and global central banks pursue monetary policies to combat persistently high inflation and maintain financial market stability. Labor markets and consumer balance sheets remain strong; however, inflation is weighing heavily on consumer sentiment and beginning to impact discretionary spending. Corporate earnings have generally performed better than expected, but warnings are growing along with wider credit spreads. While evidence of slower economic conditions has begun to mount, we expect the Federal Reserve to continue to raise rates until a sustainable improvement in inflationary conditions has been achieved. Over the near-term, we expect financial market volatility to remain intensified and conditions tighter with persistent inflation, geopolitical risk, and the Fed's hawkish monetary policy. At the September meeting, the Federal Open Market Committee (FOMC) delivered the third 75- basis point increase to the Fed Funds Rate, increasing the range to 3.00% to 3.25%. The FOMC acknowledged spending and production are experiencing modest growth, offset by a robust labor market and elevated inflation metrics. We expect the Fed to continue to increase the federal funds rate in the near term until inflationary pressures weaken. In September, yields rose significantly across the curve. The 2-year Treasury yield increased 79 basis points to 4.28%, the 5-year Treasury yield rose 74 basis points to 4.09%, and the 10-year Treasury yield gained 64 basis points to 3.83%. The spread between the 2-year Treasury yield and 10-year Treasury yield became more inverted at -45 basis points at September month-end versus -30 basis points at August month-end. The spread was a positive 121 basis points one year ago. The spread between 3-month and 10-year treasuries widened to 56 basis points in September compared to just 27 basis points in August. The shape of the curve does not necessarily indicate an imminent recession but bears watching as a better predictor of recession over the medium-term.”1 1 September 30, 2022 Chandler Asset Management Investment Report Table 3 Issuer/Manager 9/30/2022 6/30/22 Change Period Return Yield (Net)3 Chandler Asset Management $35,083,260 $35,751,822 ($668,562)-1.86%NA County of San Diego $34,989,149 $35,690,692 (701,543)-1.99%-7.71% Local Agency Investment Fund $41,893,855 $27,717,499 $14,176,355 0.34%1.37% Totals for September 30, 2022 $111,966,264 $99,160,013 $12,806,250 -0.32% Total Market Value 1 42 Page 184 of 623 COMPLIANCE STATEMENT All of the City’s investments are in compliance with the City’s investment policy (City Council Policy No. 203) and the California Government Code (§53601 et seq). FINANCIAL STATEMENT Realized and unrealized gains for the period, reflected below, were $258,829. These changes include changes in security market values, gain or loss from the sale of assets, accrued interest, and reinvested interest/earnings. The difference between the changes reflected in the previous two tables is attributable to the purchase and sale of securities for which the first of the tables accounts but the second table typically does not (unless an investment is sold before maturity). STAFF CERTIFICATION Staff certifies that there are sufficient funds to meet the pool’s expenditure requirements. FINANCIAL STATEMENT: Not Applicable. RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Not Applicable. ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBIT: Exhibit A - Investment Reports Table 4 Issuer/Manager Gain/(Loss) Chandler Asset Management 41,422$ County of San Diego 82,707 LAIF 134,700 Totals for September 30, 2022 258,829$ Page 185 of 623 Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures. CHANDLER ASSET MANAGEMENT chandlerasset.com City of National City MONTHLY ACCOUNT STATEMENT SEPTEMBER 1, 2022 THROUGH SEPTEMBER 30, 2022 Chandler Team: For questions about your account, please call (800) 317-4747, or contact operations@chandlerasset.com Custodian Bank of New York Mellon Lauren Dehner (904) 645-1918 Page 186 of 623 ACCOUNT SUMMARY Beg. Values as of 8/31/22 End Values as of 9/30/22 Market Value 35,507,650 34,978,483 Accrued Interest 118,499 104,777 Total Market Value 35,626,149 35,083,260 Income Earned 41,440 41,422 Cont/WD 0 Par 37,309,229 37,378,768 Book Value 37,472,292 37,511,841 Cost Value 37,472,292 37,511,841 TOP ISSUERS Government of United States 43.6% Federal Home Loan Mortgage Corp 10.5% Federal National Mortgage Assoc 6.6% Federal Home Loan Bank 5.4% Berkshire Hathaway 2.3% Intl Bank Recon and Development 2.1% Deere & Company 1.9% John Deere ABS 1.8% Total 74.2% PORTFOLIO CHARACTERISTICS Average Modified Duration 2.28 Average Coupon 1.36% Average Purchase YTM 1.27% Average Market YTM 4.35% Average S&P/Moody Rating AA/Aa1 Average Final Maturity 2.50 yrs Average Life 2.39 yrs CREDIT QUALITY (S&P)MATURITY DISTRIBUTIONSECTOR ALLOCATION Portfolio Summary As of September 30, 2022 City of National City PERFORMANCE REVIEW Annualized TOTAL RATE OF RETURN 1M 3M YTD 1YR 2YRS 3YRS 5YRS 10YRS 2/29/2012 City of National City -1.52%-1.86%-5.64%-6.08%-3.03%-0.87%0.45%0.59%0.60% ICE BofA 1-5 Yr US Treasury & Agency Index*-1.69%-2.27%-6.13%-6.63%-3.35%-1.10%0.20%0.42%0.43% *ICE BofA 1-3 Yr US Treasury & Agency Index to 12/31/2021 Execution Time: 10/3/2022 7:37:53 PMChandler Asset Management Page 1 Page 187 of 623 Category Standard Comment U.S. Treasuries No limitation; Full faith and credit of the U.S. are pledged for the payment of principal and interest Complies Federal Agencies No Limitation; Federal agencies or U.S. government-sponsored enterprise obligations, participations, or other instruments, including those issued or fully guaranteed as to principal and interest by federal agencies or U.S. government sponsored enterprises. Complies Supranational Obligations "AA" rating category or higher by a NRSRO; 30% max; 10% max per issuer; U.S. dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by IBRD, IFC, IADB Complies Municipal Securities "A" rating category or better by two NRSROs; 30% max; 5% max per issuer; Include bonds of the City, the State of California, any other state, and any local agency within the State of California; Bonds will be registered in the name of the City or held under a custodial agreement at a bank. Complies Corporate Medium Term Notes "A" rating category or better by at least two NRSROs; 30% max; 5% max per issuer; Issued by corporations organized and operating within the U.S. or by depository institutions licensed by U.S. or any state and operating within the U.S.Complies Mortgage Pass-throughs and Asset Backed Securities "AA" rating category or better by a NRSRO; 20% max Complies Negotiable Certificates of Deposit "A" long-term debt rated or higher by at least two NRSROs; and/or "A1" short-term debt rated or higher by at least two NRSROs; 30% max (including CDARs); 5% max per issuer Complies Certificate of Deposit Placement Service (CDARS)30% max (combination of Certificates of Deposit, including CDARS)Complies FDIC insured Time Deposits/ Certificates of Deposit Non-Negotiable Certificates of Deposit in state or federally chartered banks, savings and loans, or credit unions; The amount per institution is limited to maximum covered under FDIC; 30% max combined certificates of deposit including CDARS Complies Banker’s Acceptances "A-1" short-term debt rated or higher by at least two NRSROs; and "A" long-term debt rated by two NRSROs; 40% max; 5% max per issuer; 180 days max maturity Complies Commercial Paper "A-1" short-term rated or higher by at least two NRSROs; and "A" long-term debt rated by two NRSROs; 25% max; 5% max per issuer; 270 days max maturity; Issuer is a corporation organized and operating in the U.S. with assets > $500 million Complies Money Market Mutual Funds 20% max in Money Market Mutual Funds; Registered with SEC under Investment Company Act of 1940 and funds meet either of the following criteria: (i) Highest rating by two NRSROs; or (ii) Retained an investment adviser registered or exempt from SEC registration with > 5 years experience managing money market mutual funds with AUM >$500 million Complies Local Agency Investment Fund (LAIF)Maximum permitted amount in LAIF; Not used by investment adviser Complies Local Government Investment Pool (LGIP)San Diego County Investment Pool Complies Prohibited Securities Any investment not specifically described in the policy; Inverse floaters; Ranges notes, Mortgage-derived interest-only strips; Zero interest accrual securities if held to maturity; Trading securities for the sole purpose of speculating on the future direction of interest rates; Purchasing or selling securities on margin; Reverse repurchase agreements; Securities lending or any other form of borrowing or leverage; Foreign currency denominated securities Complies Callable Securities 20% maximum (does not include "make whole call" securities)Complies Maximum Issuer 5% max per issuer, except as noted in Section VIII of the investment policy Complies Duration Approximately equal to duration of the benchmark Complies Maximum maturity 5 years Complies City of National City As of September 30, 2022 Assets managed by Chandler Asset Management are in full compliance with state law and with the City's investment policy. Statement of Compliance Page 188 of 623 BOOK VALUE RECONCILIATION BEGINNING BOOK VALUE $37,472,292.20 Acquisition + Security Purchases $580,473.50 + Money Market Fund Purchases $636,328.20 + Money Market Contributions $0.00 + Security Contributions $0.00 + Security Transfers $0.00 Total Acquisitions $1,216,801.70 Dispositions - Security Sales $74,867.25 - Money Market Fund Sales $588,251.28 - MMF Withdrawals $0.00 - Security Withdrawals $0.00 - Security Transfers $0.00 - Other Dispositions $0.00 - Maturites $400,000.00 - Calls $0.00 - Principal Paydowns $98,538.26 Total Dispositions $1,161,656.79 Amortization/Accretion +/- Net Accretion $0.00 $0.00 Gain/Loss on Dispositions +/- Realized Gain/Loss ($15,595.74) ($15,595.74) ENDING BOOK VALUE $37,511,841.37 CASH TRANSACTION SUMMARY BEGINNING BALANCE $22,588.18 Acquisition Contributions $0.00 Security Sale Proceeds $74,867.25 Accrued Interest Received $463.54 Interest Received $62,044.27 Dividend Received $414.88 Principal on Maturities $400,000.00 Interest on Maturities $0.00 Calls/Redemption (Principal)$0.00 Interest from Calls/Redemption $0.00 Principal Paydown $98,538.26 Total Acquisitions $636,328.20 Dispositions Withdrawals $0.00 Security Purchase $580,473.50 Accrued Interest Paid $7,777.78 Total Dispositions $588,251.28 ENDING BOOK VALUE $70,665.10 Reconciliation Summary As of September 30, 2022 City of National City Execution Time: 10/3/2022 7:37:53 PMChandler Asset Management Page 3 Page 189 of 623 Income Earned As of September 30, 2022 City of National City CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income FIXED INCOME 023135BW5 Amazon.com Inc Note 0.45% Due 05/12/2024 05/10/2021 05/12/2021 255,000.00 254,627.70 0.00 0.00 254,627.70 347.44 0.00 443.06 95.62 0.00 0.00 0.00 95.62 95.62 023135CF1 Amazon.com Inc Callable Note Cont 3/13/2027 3.3% Due 04/13/2027 04/11/2022 04/13/2022 205,000.00 204,577.70 0.00 0.00 204,577.70 2,593.25 0.00 3,157.00 563.75 0.00 0.00 0.00 563.75 563.75 037833EB2 Apple Inc Callable Note Cont 1/8/2026 0.7% Due 02/08/2026 01/13/2022 01/18/2022 700,000.00 677,908.00 0.00 0.00 677,908.00 313.06 0.00 721.39 408.33 0.00 0.00 0.00 408.33 408.33 05601XAC3 BMW Vehicle Lease Trust 2022-1 A3 1.1% Due 03/25/2025 01/11/2022 01/19/2022 120,000.00 119,982.06 0.00 0.00 119,982.06 22.00 110.00 22.00 110.00 0.00 0.00 0.00 110.00 110.00 06051GEU9 Bank of America Corp Note 3.3% Due 01/11/2023 12/27/2018 12/31/2018 400,000.00 393,500.00 0.00 0.00 393,500.00 1,833.33 0.00 2,933.33 1,100.00 0.00 0.00 0.00 1,100.00 1,100.00 06368FAC3 Bank of Montreal Note 1.25% Due 09/15/2026 11/18/2021 11/22/2021 500,000.00 491,120.00 0.00 0.00 491,120.00 2,881.94 3,125.00 277.78 520.84 0.00 0.00 0.00 520.84 520.84 06406RAX5 Bank of NY Mellon Corp Callable Note Cont 9/25/2024 0.85% Due 10/25/2024 12/15/2021 12/17/2021 500,000.00 495,325.00 0.00 0.00 495,325.00 1,487.50 0.00 1,841.67 354.17 0.00 0.00 0.00 354.17 354.17 084664CZ2 Berkshire Hathaway Callable Note Cont 2/15/2027 2.3% Due 03/15/2027 03/07/2022 03/15/2022 430,000.00 429,918.30 0.00 0.00 429,918.30 4,560.39 4,945.00 439.56 824.17 0.00 0.00 0.00 824.17 824.17 084670BR8 Berkshire Hathaway Callable Note Cont 1/15/2023 2.75% Due 03/15/2023 08/26/2019 08/28/2019 400,000.00 412,068.00 0.00 0.00 412,068.00 5,072.22 5,500.00 488.89 916.67 0.00 0.00 0.00 916.67 916.67 Execution Time: 10/3/2022 7:37:53 PMChandler Asset Management Page 17 Page 190 of 623 Income Earned As of September 30, 2022 City of National City CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 09690AAC7 BMW Vehicle Lease Trust 2021-2 A3 0.33% Due 12/26/2024 09/08/2021 09/15/2021 100,000.00 99,989.68 0.00 0.00 99,989.68 5.50 27.50 5.50 27.50 0.00 0.00 0.00 27.50 27.50 14913R2L0 Caterpillar Financial Service Note 0.45% Due 05/17/2024 05/10/2021 05/17/2021 405,000.00 404,457.30 0.00 0.00 404,457.30 526.50 0.00 678.38 151.88 0.00 0.00 0.00 151.88 151.88 24422EUR8 John Deere Capital Corp Note 3.45% Due 01/10/2024 03/14/2019 03/18/2019 400,000.00 408,860.00 0.00 0.00 408,860.00 1,955.00 0.00 3,105.00 1,150.00 0.00 0.00 0.00 1,150.00 1,150.00 24422EVN6 John Deere Capital Corp Note 0.45% Due 01/17/2024 03/01/2021 03/04/2021 275,000.00 274,804.75 0.00 0.00 274,804.75 151.25 0.00 254.38 103.13 0.00 0.00 0.00 103.13 103.13 3130A0F70 FHLB Note 3.375% Due 12/08/2023 01/30/2019 01/31/2019 525,000.00 540,734.25 0.00 0.00 540,734.25 4,085.16 0.00 5,561.72 1,476.56 0.00 0.00 0.00 1,476.56 1,476.56 3130A1XJ2 FHLB Note 2.875% Due 06/14/2024 Various Various 580,000.00 605,009.60 0.00 0.00 605,009.60 3,566.60 0.00 4,956.18 1,389.58 0.00 0.00 0.00 1,389.58 1,389.58 3130A2UW4 FHLB Note 2.875% Due 09/13/2024 10/29/2019 10/30/2019 300,000.00 315,474.00 0.00 0.00 315,474.00 4,025.00 4,312.50 431.25 718.75 0.00 0.00 0.00 718.75 718.75 3130A3KM5 FHLB Note 2.5% Due 12/09/2022 09/10/2019 09/13/2019 500,000.00 591,174.75 0.00 77,109.75 514,065.00 3,274.31 463.54 3,888.89 1,078.12 0.00 0.00 0.00 1,078.12 1,078.12 3135G04Q3 FNMA Note 0.25% Due 05/22/2023 05/20/2020 05/22/2020 645,000.00 643,058.55 0.00 0.00 643,058.55 443.44 0.00 577.81 134.37 0.00 0.00 0.00 134.37 134.37 Execution Time: 10/3/2022 7:37:53 PMChandler Asset Management Page 18 Page 191 of 623 Income Earned As of September 30, 2022 City of National City CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 3135G05G4 FNMA Note 0.25% Due 07/10/2023 07/08/2020 07/10/2020 560,000.00 558,796.00 0.00 0.00 558,796.00 198.33 0.00 315.00 116.67 0.00 0.00 0.00 116.67 116.67 3135G06H1 FNMA Note 0.25% Due 11/27/2023 11/23/2020 11/25/2020 580,000.00 579,338.80 0.00 0.00 579,338.80 378.61 0.00 499.44 120.83 0.00 0.00 0.00 120.83 120.83 3135G0X24 FNMA Note 1.625% Due 01/07/2025 01/16/2020 01/17/2020 625,000.00 623,050.00 0.00 0.00 623,050.00 1,523.44 0.00 2,369.79 846.35 0.00 0.00 0.00 846.35 846.35 3137EAEP0 FHLMC Note 1.5% Due 02/12/2025 06/04/2020 06/05/2020 625,000.00 652,443.75 0.00 0.00 652,443.75 494.79 0.00 1,276.04 781.25 0.00 0.00 0.00 781.25 781.25 3137EAER6 FHLMC Note 0.375% Due 05/05/2023 05/05/2020 05/07/2020 600,000.00 599,748.00 0.00 0.00 599,748.00 725.00 0.00 912.50 187.50 0.00 0.00 0.00 187.50 187.50 3137EAEV7 FHLMC Note 0.25% Due 08/24/2023 08/27/2020 08/31/2020 900,000.00 899,037.00 0.00 0.00 899,037.00 43.75 0.00 231.25 187.50 0.00 0.00 0.00 187.50 187.50 3137EAEX3 FHLMC Note 0.375% Due 09/23/2025 09/24/2020 09/25/2020 450,000.00 448,857.00 0.00 0.00 448,857.00 740.63 843.75 37.50 140.62 0.00 0.00 0.00 140.62 140.62 3137EAEY1 FHLMC Note 0.125% Due 10/16/2023 10/14/2020 10/16/2020 630,000.00 627,650.10 0.00 0.00 627,650.10 295.31 0.00 360.94 65.63 0.00 0.00 0.00 65.63 65.63 3137EAEZ8 FHLMC Note 0.25% Due 11/06/2023 11/17/2020 11/18/2020 650,000.00 649,467.00 0.00 0.00 649,467.00 519.10 0.00 654.51 135.41 0.00 0.00 0.00 135.41 135.41 Execution Time: 10/3/2022 7:37:53 PMChandler Asset Management Page 19 Page 192 of 623 Income Earned As of September 30, 2022 City of National City CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 43813GAC5 Honda Auto Receivables Trust 2021-1 A3 0.27% Due 04/21/2025 02/17/2021 02/24/2021 69,734.18 74,875.10 0.00 5,142.20 69,732.90 5.62 16.85 5.23 16.46 0.00 0.00 0.00 16.46 16.46 43813KAC6 Honda Auto Receivables Trust 2020-3 A3 0.37% Due 10/18/2024 09/22/2020 09/29/2020 164,864.55 179,215.65 0.00 14,375.32 164,840.33 23.95 55.27 22.03 53.35 0.00 0.00 0.00 53.35 53.35 43813RAC1 Honda Auto Receivables 2020-1 A3 1.61% Due 04/22/2024 02/19/2020 02/26/2020 25,460.14 28,848.33 0.00 3,393.18 25,455.15 12.90 38.71 11.39 37.20 0.00 0.00 0.00 37.20 37.20 43815BAC4 Honda Auto Receivables Trust 2022-1 A3 1.88% Due 05/15/2026 02/15/2022 02/23/2022 195,000.00 194,970.67 0.00 0.00 194,970.67 162.93 305.50 162.93 305.50 0.00 0.00 0.00 305.50 305.50 43815GAC3 Honda Auto Receivables Trust 2021-4 A3 0.88% Due 01/21/2026 11/16/2021 11/24/2021 120,000.00 119,974.70 0.00 0.00 119,974.70 29.33 88.00 29.33 88.00 0.00 0.00 0.00 88.00 88.00 43815NAC8 Honda Auto Receivables Trust 2019-3 A3 1.78% Due 08/15/2023 08/20/2019 08/27/2019 6,792.85 11,139.44 0.00 4,346.64 6,792.80 8.81 16.52 5.37 13.08 0.00 0.00 0.00 13.08 13.08 4581X0DZ8 Inter-American Dev Bank Note 0.5% Due 09/23/2024 09/15/2021 09/23/2021 505,000.00 504,626.30 0.00 0.00 504,626.30 1,108.19 1,262.50 56.11 210.42 0.00 0.00 0.00 210.42 210.42 459058GQ0 Intl. Bank Recon & Development Note 2.5% Due 03/19/2024 01/26/2021 01/28/2021 450,000.00 481,473.00 0.00 0.00 481,473.00 5,062.50 5,625.00 375.00 937.50 0.00 0.00 0.00 937.50 937.50 459058JM6 Intl. Bank Recon & Development Note 0.25% Due 11/24/2023 11/17/2020 11/24/2020 320,000.00 319,312.00 0.00 0.00 319,312.00 215.56 0.00 282.22 66.66 0.00 0.00 0.00 66.66 66.66 Execution Time: 10/3/2022 7:37:53 PMChandler Asset Management Page 20 Page 193 of 623 Income Earned As of September 30, 2022 City of National City CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 45950KCR9 International Finance Corp Note 1.375% Due 10/16/2024 07/12/2021 07/14/2021 300,000.00 308,070.00 0.00 0.00 308,070.00 1,546.88 0.00 1,890.63 343.75 0.00 0.00 0.00 343.75 343.75 46625HJE1 JP Morgan Chase Note Due 09/23/2022 12/19/2019 12/24/2019 0.00 413,076.00 0.00 413,076.00 0.00 5,705.56 6,500.00 0.00 794.44 0.00 0.00 0.00 794.44 794.44 477870AC3 John Deere Owner Trust 2019-B A3 2.21% Due 12/15/2023 07/16/2019 07/24/2019 6,504.92 8,770.62 0.00 2,267.08 6,503.54 8.62 16.16 6.39 13.93 0.00 0.00 0.00 13.93 13.93 47787JAC2 John Deere Owner Trust 2022-A A3 2.32% Due 09/16/2026 03/10/2022 03/16/2022 150,000.00 149,966.82 0.00 0.00 149,966.82 154.67 290.00 154.67 290.00 0.00 0.00 0.00 290.00 290.00 47787NAC3 John Deere Owner Trust 2020-B A3 0.51% Due 11/15/2024 07/14/2020 07/22/2020 37,278.88 40,329.03 0.00 3,055.83 37,273.20 9.14 17.14 8.45 16.45 0.00 0.00 0.00 16.45 16.45 47788UAC6 John Deere Owner Trust 2021-A A3 0.36% Due 09/15/2025 03/02/2021 03/10/2021 115,000.00 114,977.90 0.00 0.00 114,977.90 18.40 34.50 18.40 34.50 0.00 0.00 0.00 34.50 34.50 47789KAC7 John Deere Owner Trust 2020-A A3 1.1% Due 08/15/2024 03/04/2020 03/11/2020 61,232.73 68,294.48 0.00 7,065.49 61,228.99 33.39 62.61 29.94 59.16 0.00 0.00 0.00 59.16 59.16 47789QAC4 John Deere Owner Trust 2021-B A3 0.52% Due 03/16/2026 07/13/2021 07/21/2021 135,000.00 134,987.96 0.00 0.00 134,987.96 31.20 58.50 31.20 58.50 0.00 0.00 0.00 58.50 58.50 47800AAC4 John Deere Owner Trust 2022-B A3 3.74% Due 02/16/2027 07/12/2022 07/20/2022 155,000.00 154,985.20 0.00 0.00 154,985.20 660.21 885.65 257.64 483.08 0.00 0.00 0.00 483.08 483.08 Execution Time: 10/3/2022 7:37:53 PMChandler Asset Management Page 21 Page 194 of 623 Income Earned As of September 30, 2022 City of National City CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 58769KAD6 Mercedes-Benz Auto Lease Trust 2021-B A3 0.4% Due 11/15/2024 06/22/2021 06/29/2021 155,000.00 154,988.30 0.00 0.00 154,988.30 27.56 51.67 27.56 51.67 0.00 0.00 0.00 51.67 51.67 61747YET8 Morgan Stanley Callable Note Cont 7/17/2025 4.679% Due 07/17/2026 07/18/2022 07/20/2022 205,000.00 205,000.00 0.00 0.00 205,000.00 1,092.42 0.00 1,891.75 799.33 0.00 0.00 0.00 799.33 799.33 65479JAD5 Nissan Auto Receivables Owner 2019-C A3 1.93% Due 07/15/2024 10/16/2019 10/23/2019 79,821.59 94,301.82 0.00 14,484.44 79,817.38 80.89 151.68 68.47 139.26 0.00 0.00 0.00 139.26 139.26 665859AW4 Northern Trust Company Callable Note Cont 4/10/2027 4% Due 05/10/2027 09/28/2022 09/30/2022 500,000.00 0.00 485,540.00 0.00 485,540.00 0.00 (7,777.78) 7,833.33 55.55 0.00 0.00 0.00 55.55 55.55 69371RR40 Paccar Financial Corp Note 0.5% Due 08/09/2024 08/03/2021 08/09/2021 155,000.00 154,916.30 0.00 0.00 154,916.30 47.36 0.00 111.94 64.58 0.00 0.00 0.00 64.58 64.58 78015K7H1 Royal Bank of Canada Note 1.15% Due 06/10/2025 11/16/2021 11/18/2021 500,000.00 496,035.00 0.00 0.00 496,035.00 1,293.75 0.00 1,772.92 479.17 0.00 0.00 0.00 479.17 479.17 79466LAG9 Salesforce.com Inc Callable Note Cont 7/15/2022 0.625% Due 07/15/2024 06/29/2021 07/12/2021 65,000.00 64,966.85 0.00 0.00 64,966.85 51.91 0.00 85.76 33.85 0.00 0.00 0.00 33.85 33.85 808513BN4 Charles Schwab Corp Callable Note Cont 2/18/2024 0.75% Due 03/18/2024 Various Various 485,000.00 487,196.50 0.00 0.00 487,196.50 1,646.98 1,818.75 131.35 303.12 0.00 0.00 0.00 303.12 303.12 808513BY0 Charles Schwab Corp Callable Note Cont 2/3/2027 2.45% Due 03/03/2027 03/01/2022 03/03/2022 80,000.00 79,913.60 0.00 0.00 79,913.60 969.11 980.00 152.44 163.33 0.00 0.00 0.00 163.33 163.33 Execution Time: 10/3/2022 7:37:53 PMChandler Asset Management Page 22 Page 195 of 623 Income Earned As of September 30, 2022 City of National City CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 857477BR3 State Street Bank Callable Note Cont 2/6/2025 1.746% Due 02/06/2026 02/02/2022 02/07/2022 125,000.00 125,000.00 0.00 0.00 125,000.00 151.56 0.00 333.44 181.88 0.00 0.00 0.00 181.88 181.88 87612EBM7 Target Corp Callable Note Cont 12/15/2026 1.95% Due 01/15/2027 01/19/2022 01/24/2022 215,000.00 214,634.50 0.00 0.00 214,634.50 535.71 0.00 885.08 349.37 0.00 0.00 0.00 349.37 349.37 89114TZG0 Toronto-Dominion Bank Note 1.25% Due 09/10/2026 11/17/2021 11/19/2021 500,000.00 489,720.00 0.00 0.00 489,720.00 2,968.75 3,125.00 364.58 520.83 0.00 0.00 0.00 520.83 520.83 89232HAC9 Toyota Auto Receivable Own 2020-A A3 1.66% Due 05/15/2024 06/17/2020 06/19/2020 78,813.83 93,383.80 0.00 12,753.56 80,630.24 67.34 126.27 58.15 117.08 0.00 0.00 0.00 117.08 117.08 89236TFS9 Toyota Motor Credit Corp Note 3.35% Due 01/08/2024 05/20/2019 05/22/2019 400,000.00 411,444.00 0.00 0.00 411,444.00 1,972.78 0.00 3,089.44 1,116.66 0.00 0.00 0.00 1,116.66 1,116.66 89236XAC0 Toyota Auto Receivables 2020-D A3 0.35% Due 01/15/2025 10/06/2020 10/13/2020 63,346.63 69,554.99 0.00 6,220.16 63,334.83 10.82 20.29 9.85 19.32 0.00 0.00 0.00 19.32 19.32 89237VAB5 Toyota Auto Receivables Trust 2020-C A3 0.44% Due 10/15/2024 07/21/2020 07/27/2020 79,161.53 87,520.92 0.00 8,365.48 79,155.44 17.12 32.09 15.48 30.45 0.00 0.00 0.00 30.45 30.45 89240BAC2 Toyota Auto Receivables Owners 2021-A A3 0.26% Due 05/15/2025 02/02/2021 02/08/2021 245,090.70 262,391.33 0.00 17,346.12 245,045.21 30.33 56.86 28.32 54.85 0.00 0.00 0.00 54.85 54.85 91159HHX1 US Bancorp Callable Note Cont 6/28/2024 2.4% Due 07/30/2024 03/25/2021 03/29/2021 450,000.00 475,276.50 0.00 0.00 475,276.50 930.00 0.00 1,830.00 900.00 0.00 0.00 0.00 900.00 900.00 Execution Time: 10/3/2022 7:37:53 PMChandler Asset Management Page 23 Page 196 of 623 Income Earned As of September 30, 2022 City of National City CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 9128282A7 US Treasury Note 1.5% Due 08/15/2026 Various Various 1,000,000.00 1,019,062.50 0.00 0.00 1,019,062.50 692.94 0.00 1,915.76 1,222.82 0.00 0.00 0.00 1,222.82 1,222.82 9128284Z0 US Treasury Note 2.75% Due 08/31/2025 06/17/2021 06/18/2021 675,000.00 732,111.33 0.00 0.00 732,111.33 51.28 0.00 1,589.61 1,538.33 0.00 0.00 0.00 1,538.33 1,538.33 9128286L9 US Treasury Note 2.25% Due 03/31/2026 10/25/2021 10/26/2021 1,000,000.00 1,050,234.38 0.00 0.00 1,050,234.38 9,467.21 11,250.00 61.81 1,844.60 0.00 0.00 0.00 1,844.60 1,844.60 912828P46 US Treasury Note 1.625% Due 02/15/2026 Various Various 1,300,000.00 1,303,801.76 0.00 0.00 1,303,801.76 975.88 0.00 2,698.03 1,722.15 0.00 0.00 0.00 1,722.15 1,722.15 912828R36 US Treasury Note 1.625% Due 05/15/2026 10/25/2021 10/26/2021 1,000,000.00 1,022,500.00 0.00 0.00 1,022,500.00 4,813.18 0.00 6,137.91 1,324.73 0.00 0.00 0.00 1,324.73 1,324.73 912828V98 US Treasury Note 2.25% Due 02/15/2027 03/29/2022 03/30/2022 360,000.00 355,387.50 0.00 0.00 355,387.50 374.18 0.00 1,034.51 660.33 0.00 0.00 0.00 660.33 660.33 912828WE6 US Treasury Note 2.75% Due 11/15/2023 07/22/2019 07/23/2019 600,000.00 624,000.00 0.00 0.00 624,000.00 4,887.23 0.00 6,232.34 1,345.11 0.00 0.00 0.00 1,345.11 1,345.11 912828ZT0 US Treasury Note 0.25% Due 05/31/2025 02/25/2021 02/26/2021 675,000.00 665,112.30 0.00 0.00 665,112.30 428.79 0.00 567.11 138.32 0.00 0.00 0.00 138.32 138.32 91282CAM3 US Treasury Note 0.25% Due 09/30/2025 Various Various 1,000,000.00 970,800.79 0.00 0.00 970,800.79 1,051.92 1,250.00 6.86 204.94 0.00 0.00 0.00 204.94 204.94 Execution Time: 10/3/2022 7:37:53 PMChandler Asset Management Page 24 Page 197 of 623 Income Earned As of September 30, 2022 City of National City CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 91282CAT8 US Treasury Note 0.25% Due 10/31/2025 11/29/2021 11/30/2021 650,000.00 629,535.16 0.00 0.00 629,535.16 547.55 0.00 680.03 132.48 0.00 0.00 0.00 132.48 132.48 91282CAZ4 US Treasury Note 0.375% Due 11/30/2025 Various Various 800,000.00 780,535.15 0.00 0.00 780,535.15 762.29 0.00 1,008.19 245.90 0.00 0.00 0.00 245.90 245.90 91282CBA8 US Treasury Note 0.125% Due 12/15/2023 12/28/2020 12/29/2020 700,000.00 698,824.22 0.00 0.00 698,824.22 186.48 0.00 258.20 71.72 0.00 0.00 0.00 71.72 71.72 91282CBE0 US Treasury Note 0.125% Due 01/15/2024 01/28/2021 01/29/2021 550,000.00 548,990.23 0.00 0.00 548,990.23 89.67 0.00 145.72 56.05 0.00 0.00 0.00 56.05 56.05 91282CBV2 US Treasury Note 0.375% Due 04/15/2024 04/29/2021 04/30/2021 650,000.00 650,583.98 0.00 0.00 650,583.98 925.72 0.00 1,125.51 199.79 0.00 0.00 0.00 199.79 199.79 91282CCG4 US Treasury Note 0.25% Due 06/15/2024 06/24/2021 06/25/2021 300,000.00 298,160.16 0.00 0.00 298,160.16 159.84 0.00 221.31 61.47 0.00 0.00 0.00 61.47 61.47 91282CCT6 US Treasury Note 0.375% Due 08/15/2024 12/15/2021 12/16/2021 800,000.00 789,000.00 0.00 0.00 789,000.00 138.59 0.00 383.15 244.56 0.00 0.00 0.00 244.56 244.56 91282CDG3 US Treasury Note 1.125% Due 10/31/2026 11/18/2021 11/19/2021 1,000,000.00 995,507.81 0.00 0.00 995,507.81 3,790.76 0.00 4,707.88 917.12 0.00 0.00 0.00 917.12 917.12 91282CDH1 US Treasury Note 0.75% Due 11/15/2024 11/29/2021 11/30/2021 650,000.00 648,324.22 0.00 0.00 648,324.22 1,443.95 0.00 1,841.37 397.42 0.00 0.00 0.00 397.42 397.42 Execution Time: 10/3/2022 7:37:53 PMChandler Asset Management Page 25 Page 198 of 623 Income Earned As of September 30, 2022 City of National City CUSIP Security Description Trade Date Settle Date Units Book Value: Begin Book Value: Acq Book Value: Disp Book Value: End Prior Accrued Inc. Received Ending Accrued Total Interest Accr. Of Discount Amort. Of Premium Net Accret/Amort Income Earned Total Income 91282CDK4 US Treasury Note 1.25% Due 11/30/2026 12/22/2021 12/23/2021 1,000,000.00 1,001,601.56 0.00 0.00 1,001,601.56 3,176.23 0.00 4,200.82 1,024.59 0.00 0.00 0.00 1,024.59 1,024.59 91282CEF4 US Treasury Note 2.5% Due 03/31/2027 05/25/2022 05/26/2022 690,000.00 682,722.66 0.00 0.00 682,722.66 7,258.20 8,625.00 47.39 1,414.19 0.00 0.00 0.00 1,414.19 1,414.19 91282CET4 US Treasury Note 2.625% Due 05/31/2027 06/21/2022 06/22/2022 850,000.00 820,847.66 0.00 0.00 820,847.66 5,669.57 0.00 7,498.46 1,828.89 0.00 0.00 0.00 1,828.89 1,828.89 91282CFB2 US Treasury Note 2.75% Due 07/31/2027 08/30/2022 08/31/2022 325,000.00 317,001.95 0.00 0.00 317,001.95 777.17 0.00 1,505.77 728.60 0.00 0.00 0.00 728.60 728.60 91324PEC2 United Health Group Inc Callable Note Cont 4/15/2026 1.15% Due 05/15/2026 11/24/2021 11/29/2021 500,000.00 490,095.00 0.00 0.00 490,095.00 1,693.06 0.00 2,172.22 479.16 0.00 0.00 0.00 479.16 479.16 931142ER0 Wal-Mart Stores Callable Note Cont 08/17/2026 1.05% Due 09/17/2026 09/08/2021 09/17/2021 80,000.00 79,848.80 0.00 0.00 79,848.80 382.67 420.00 32.67 70.00 0.00 0.00 0.00 70.00 70.00 931142EW9 Wal-Mart Stores Note 3.9% Due 09/09/2025 09/06/2022 09/09/2022 95,000.00 0.00 94,933.50 0.00 94,933.50 0.00 0.00 226.42 226.42 0.00 0.00 0.00 226.42 226.42 Total Fixed Income 37,308,102.53 37,449,704.02 580,473.50 589,001.25 37,441,176.27 118,499.46 54,730.03 104,776.60 41,007.17 0.00 0.00 0.00 41,007.17 41,007.17 Execution Time: 10/3/2022 7:37:53 PMChandler Asset Management Page 26 Page 199 of 623 Sep 2022 Page 200 of 623 PARTICIPANT CASH BALANCES County of San Diego Pooled Money Fund As of September 30, 2022 ($000) 4 * Footnote: The Oracle ending balances for these pool participants are under $500.Due to rounding,the FMV will show as zero even though there is an Oracle balance. FMV FMV FMV % of PARTICIPANT 07/31/22 08/31/22 09/30/22 Total Lakeside FPD 10,568 9,329 9,125 0.08% Leucadia Wastewater District 2,956 2,929 993 0.01% Lower Sweetwater FPD 648 526 524 0.00% Metropolitan Transit System 35,410 65,552 88,670 0.81% Mission Resource Conservation District 116 113 112 0.00% North County Transit District 34,535 29,421 31,967 0.29% North County Cemetery District 9,038 9,034 8,669 0.08% North County Dispatch 5,578 5,050 4,692 0.04% North County FPD 5,137 4,146 4,640 0.04% Otay Water District 55,220 54,723 42,713 0.39% Palomar Health 0 0 0 0.00% Pomerado Cemetery District 2,324 2,336 2,218 0.02% Public Agencies Self-Insurance System 3,434 3,404 3,368 0.03% Ramona Cemetery District 1,039 971 1,084 0.01% Rancho Santa Fe FPD 10,634 9,991 8,797 0.08% Resource Conservation District of Greater SD*0 0 0 0.00% Rincon del Diablo Municipal Water District 6,704 6,644 6,574 0.06% SANDAG 36,017 34,760 29,824 0.27% SD County Regional Airport Authority 362,863 335,778 324,338 2.96% San Diego Housing Commission 21,736 21,543 21,314 0.19% San Diego Geographic Information Source 597 595 413 0.00% San Diego Law Library 5,371 5,354 5,207 0.05% San Diego Local Agency Formation Comm 1,562 2,590 2,696 0.02% San Diego Regional Training Center 639 1,099 877 0.01% San Dieguito River Park 445 323 827 0.01% San Marcos FPD 1 1 1 0.00% San Miguel Consolidated FPD 22,867 21,350 19,677 0.18% Santa Fe Irrigation District 4,425 4,386 4,339 0.04% Upper San Luis Rey Resource Conserv Dist 87 87 86 0.00% Vallecitos Water District 5,436 5,387 5,330 0.05% Valley Center FPD 2,402 2,150 1,496 0.01% Valley Center Cemetery District 461 457 453 0.00% Valley Center Water District 30,550 29,964 29,162 0.27% Vista FPD 5,094 5,049 4,995 0.05% Whispering Palms Community Services District*0 0 0 0.00% Total Voluntary Participants 1,014,165 1,000,291 976,805 8.90% Pooled Money Fund Total $ 12,187,896 $ 11,169,626 $ 10,974,939 100.00% FMV FMV FMV % of PARTICIPANT 07/31/22 08/31/22 09/30/22 Total COUNTY 1,565,065 1,584,970 1,549,094 14.11% COUNTY -SPECIAL TRUST FUNDS 2,040,930 1,839,572 1,849,445 16.85% NON-COUNTY INVESTMENT FUNDS 135,556 137,456 108,218 0.99% SCHOOLS -(K THRU 12)5,970,571 5,361,904 5,252,374 47.86% COMMUNITY COLLEGES San Diego 263,184 180,016 193,054 1.77% Grossmont-Cuyamaca 221,712 192,858 195,834 1.78% MiraCosta 295,580 268,538 248,621 2.27% Palomar 277,090 246,858 251,464 2.29% Southwestern 404,041 357,163 350,030 3.19% Total Community Colleges 1,461,608 1,245,433 1,239,003 11.29% FIRST 5 COMMISSION 44,488 43,618 38,210 0.35% SDCERA 2,091 7,738 7,542 0.07% CITIES Chula Vista 31,313 31,042 30,712 0.28% Coronado 92,321 86,749 85,830 0.78% Del Mar 2,720 2,696 2,667 0.02% Encinitas 1,196 1,185 1,173 0.01% National City 35,682 35,364 34,989 0.32% Oceanside*0 0 0 0.00% Solana Beach*0 0 0 0.00% Vista 1,192 1,228 72 0.00% INDEPENDENT AGENCIES Air Pollution Control District 95,492 92,886 88,917 0.81% Alpine FPD 2,734 2,322 1,960 0.02% Bonita-Sunnyside FPD 6,185 5,793 5,278 0.05% Borrego Springs FPD 1,186 1,118 963 0.01% Canebrake County Water District 54 53 53 0.00% Deer Springs FPD 13,261 13,151 13,005 0.12% Grossmont Healthcare District 2 2 2 0.00% Julian-Cuyamaca FPD 22 23 22 0.00% Lake Cuyamaca Rec & Park District 330 279 229 0.00% Page 201 of 623 Below is the market price for September 2022. Thank you, Page 202 of 623 Below is the market price for August 2022. National City Pool YTM: 1.66 Conversion of Oracle Cash Balance to COSD Pool Market Price Month Ended August 31st, 2022 Current Month Prior Month Prior Quarter Prior Year 8/31/2022 7/31/2022 5/31/2022 8/31/2021 COSD Pool Market Price 96.272% 97.239% 97.705% 100.314% COSD Pool Market Value 11,169,625,7 05 12,187,895,5 79 13,884,453,7 95 10,679,810,9 81 National City percentage of MV share in COSD Pool 0.3166% 0.2928% 0.2579% 0.3426% Fund Description Oracle Cash Balance Market Value Market Value Market Value Market Value 4407 7 NATIONAL CITY INVESTMENT FUND 36,733,657 35,364,054 35,682,076 35,809,770 36,585,6 20 Total for National City 36,733,657 35,364,054 35,682,076 35,809,770 36,585,620 Thank you, Page 203 of 623 Below is the market price for July 2022. National City Pool YTM: 1.46 Conversion of Oracle Cash Balance to COSD Pool Market Price Month Ended July 31st, 2022 Current Month Prior Month Prior Quarter Prior Year 7/31/2022 6/30/2022 4/30/2022 7/31/2021 COSD Pool Market Price 97.239% 97.380% 97.593% 100.104% COSD Pool Market Value 12,187,895,579 13,553,587,684 14,480,992,673 10,935,359,363 National City percentage of MV share in COSD Pool 0.2928% 0.2633% 0.2470% 0.3338% Fund Description Oracle Cash Balance Market Value Market Value Market Value Market Value NATIONAL CITY INVESTMENT FUND 36,695,354 35,682,076 35,690,692 35,768,598 36,504,285 Total for National City 36,695,354 35,682,076 35,690,692 35,768,598 36,504,285 Thank you, Page 204 of 623 10/25/22, 9:06 AM LAIF Regular Monthly Statement https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 October 25, 2022 LAIF Home PMIA Average Monthly Yields Tran Type Definitions 0.00 Beginning Balance:42,578,320.37 CITY OF NATIONAL CITY FINANCE DIRECTOR 1243 NATIONAL CITY BLVD NATIONAL CITY, CA 91950-4397 September 2022 Statement Account Summary Total Deposit: Total Withdrawal:0.00 Ending Balance:42,578,320.37 Page 205 of 623 9/22/22, 5:40 PM LAIF Regular Monthly Statement https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 September 22, 2022 LAIF Home PMIA Average Monthly Yields Tran Type Definitions 0.00 Beginning Balance:42,578,320.37 CITY OF NATIONAL CITY FINANCE DIRECTOR 1243 NATIONAL CITY BLVD NATIONAL CITY, CA 91950-4397 August 2022 Statement Account Summary Total Deposit: Total Withdrawal:0.00 Ending Balance:42,578,320.37 Page 206 of 623 9/22/22, 5:39 PM LAIF Regular Monthly Statement https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 September 22, 2022 LAIF Home PMIA Average Monthly Yields CITY OF NATIONAL CITY FINANCE DIRECTOR 1243 NATIONAL CITY BLVD NATIONAL CITY, CA 91950-4397 July 2022 Statement Tran Type Definitions Effective Date Transaction Date Tran Type Confirm Number Web Confirm Number Authorized Caller Amount 7/15/2022 7/15/2022 QRD 1709923 N/A SYSTEM 52,471.93 7/20/2022 7/19/2022 RD 1710416 N/A RACHELLE BARRERA 14,500,000.00 Account Summary Total Deposit:14,552,471.93 Beginning Balance:28,025,848.44 Total Withdrawal:0.00 Ending Balance:42,578,320.37 Page 207 of 623 10/25/22, 9:07 AM Untitled Page https://laif.sco.ca.gov/Result.aspx 1/1 BETTY T. YEE California State Controller LOCAL AGENCY INVESTMENT FUND REMITTANCE ADVICE NATIONAL CITYAgency Name As of 10/14/2022, your Local Agency Investment Fund account has been directly credited with the interest earned on your deposits for the quarter ending 09/30/2022. Earnings Ratio .00003699565555327 Interest Rate 1.35% Dollar Day Total $3,640,970,867.02 Quarter End Principal Balance $42,578,320.37 Quarterly Interest Earned $134,700.10 Page 208 of 623 Carrying Cost Plus Description Accrued Interest Purch. Amortized Cost Fair Value Accrued Interest United States Treasury: Bills 46,457,160,163.94$ 46,657,126,553.35$ 46,514,062,000.00$ NA Notes 101,947,915,596.75$ 101,931,736,332.18$ 98,369,732,500.00$ 237,324,054.50$ Federal Agency: SBA 334,748,643.50$ 334,663,003.17$ 335,043,755.16$ 569,406.02$ MBS-REMICs 3,916,682.58$ 3,916,682.58$ 3,897,852.17$ 17,633.20$ Debentures 8,593,591,055.03$ 8,592,721,013.39$ 8,353,930,850.00$ 19,156,465.50$ Debentures FR -$ -$ -$ -$ Debentures CL 2,650,000,000.00$ 2,650,000,000.00$ 2,574,109,000.00$ 18,005,248.00$ Discount Notes 30,277,339,791.63$ 30,410,365,854.03$ 30,310,774,000.00$ NA Supranational Debentures 2,229,190,558.99$ 2,229,010,003.43$ 2,133,180,400.00$ 7,597,861.50$ Supranational Debentures FR -$ -$ -$ -$ CDs and YCDs FR -$ -$ -$ -$ Bank Notes 100,000,000.00$ 100,000,000.00$ 99,780,349.59$ 775,000.00$ CDs and YCDs 14,260,000,000.00$ 14,260,000,000.00$ 14,229,806,876.24$ 76,472,855.58$ Commercial Paper 10,239,348,756.91$ 10,295,023,243.07$ 10,275,778,388.91$ NA Corporate: Bonds FR -$ -$ -$ -$ Bonds 481,185,800.06$ 481,129,063.95$ 451,006,190.00$ 2,646,445.75$ Repurchase Agreements -$ -$ -$ -$ Reverse Repurchase -$ -$ -$ -$ Time Deposits 4,909,000,000.00$ 4,909,000,000.00$ 4,909,000,000.00$ NA PMIA & GF Loans 367,981,000.00$ 367,981,000.00$ 367,981,000.00$ NA TOTAL 222,851,378,049.39$ 223,222,672,749.15$ 218,928,083,162.07$ 362,564,970.05$ Fair Value Including Accrued Interest 219,290,648,132.12$ Repurchase Agreements, Time Deposits, PMIA & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost). The value of each participating dollar equals the fair value divided by the amortized cost (0.980760962). As an example: if an agency has an account balance of $20,000,000.00, then the agency would report its participation in the LAIF valued at $19,615,219.23 or $20,000,000.00 x 0.980760962. State of California Pooled Money Investment Account Market Valuation 9/30/2022 Page 209 of 623 10/25/22, 8:58 AM PMIA Average Monthly Effective Yields https://www.treasurer.ca.gov/pmia-laif/historical/avg_mn_ylds.asp 1/2 Home ->> PMIA ->> PMIA Average Monthly Effective Yields PMIA Average Monthly Effective Yields Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1977 5.770 5.660 5.660 5.650 5.760 5.850 5.930 6.050 6.090 6.090 6.610 6.730 1978 6.920 7.050 7.140 7.270 7.386 7.569 7.652 7.821 7.871 8.110 8.286 8.769 1979 8.777 8.904 8.820 9.082 9.046 9.224 9.202 9.528 9.259 9.814 10.223 10.218 1980 10.980 11.251 11.490 11.480 12.017 11.798 10.206 9.870 9.945 10.056 10.426 10.961 1981 10.987 11.686 11.130 11.475 12.179 11.442 12.346 12.844 12.059 12.397 11.887 11.484 1982 11.683 12.044 11.835 11.773 12.270 11.994 12.235 11.909 11.151 11.111 10.704 10.401 1983 10.251 9.887 9.688 9.868 9.527 9.600 9.879 10.076 10.202 10.182 10.164 10.227 1984 10.312 10.280 10.382 10.594 10.843 11.119 11.355 11.557 11.597 11.681 11.474 11.024 1985 10.579 10.289 10.118 10.025 10.180 9.743 9.656 9.417 9.572 9.482 9.488 9.371 1986 9.252 9.090 8.958 8.621 8.369 8.225 8.141 7.844 7.512 7.586 7.432 7.439 1987 7.365 7.157 7.205 7.044 7.294 7.289 7.464 7.562 7.712 7.825 8.121 8.071 1988 8.078 8.050 7.945 7.940 7.815 7.929 8.089 8.245 8.341 8.397 8.467 8.563 1989 8.698 8.770 8.870 8.992 9.227 9.204 9.056 8.833 8.801 8.771 8.685 8.645 1990 8.571 8.538 8.506 8.497 8.531 8.538 8.517 8.382 8.333 8.321 8.269 8.279 1991 8.164 8.002 7.775 7.666 7.374 7.169 7.098 7.072 6.859 6.719 6.591 6.318 1992 6.122 5.863 5.680 5.692 5.379 5.323 5.235 4.958 4.760 4.730 4.659 4.647 1993 4.678 4.649 4.624 4.605 4.427 4.554 4.438 4.472 4.430 4.380 4.365 4.384 1994 4.359 4.176 4.248 4.333 4.434 4.623 4.823 4.989 5.106 5.243 5.380 5.528 1995 5.612 5.779 5.934 5.960 6.008 5.997 5.972 5.910 5.832 5.784 5.805 5.748 1996 5.698 5.643 5.557 5.538 5.502 5.548 5.587 5.566 5.601 5.601 5.599 5.574 1997 5.583 5.575 5.580 5.612 5.634 5.667 5.679 5.690 5.707 5.705 5.715 5.744 1998 5.742 5.720 5.680 5.672 5.673 5.671 5.652 5.652 5.639 5.557 5.492 5.374 1999 5.265 5.210 5.136 5.119 5.086 5.095 5.178 5.225 5.274 5.391 5.484 5.639 2000 5.760 5.824 5.851 6.014 6.190 6.349 6.443 6.505 6.502 6.517 6.538 6.535 2001 6.372 6.169 5.976 5.760 5.328 4.958 4.635 4.502 4.288 3.785 3.526 3.261 2002 3.068 2.967 2.861 2.845 2.740 2.687 2.714 2.594 2.604 2.487 2.301 2.201 2003 2.103 1.945 1.904 1.858 1.769 1.697 1.653 1.632 1.635 1.596 1.572 1.545 2004 1.528 1.440 1.474 1.445 1.426 1.469 1.604 1.672 1.771 1.890 2.003 2.134 2005 2.264 2.368 2.542 2.724 2.856 2.967 3.083 3.179 3.324 3.458 3.636 3.808 2006 3.955 4.043 4.142 4.305 4.563 4.700 4.849 4.946 5.023 5.098 5.125 5.129 2007 5.156 5.181 5.214 5.222 5.248 5.250 5.255 5.253 5.231 5.137 4.962 4.801 2008 4.620 4.161 3.777 3.400 3.072 2.894 2.787 2.779 2.774 2.709 2.568 2.353 2009 2.046 1.869 1.822 1.607 1.530 1.377 1.035 0.925 0.750 0.646 0.611 0.569 2010 0.558 0.577 0.547 0.588 0.560 0.528 0.531 0.513 0.500 0.480 0.454 0.462 2011 0.538 0.512 0.500 0.588 0.413 0.448 0.381 0.408 0.378 0.385 0.401 0.382 2012 0.385 0.389 0.383 0.367 0.363 0.358 0.363 0.377 0.348 0.340 0.324 0.326 2013 0.300 0.286 0.285 0.264 0.245 0.244 0.267 0.271 0.257 0.266 0.263 0.264 2014 0.244 0.236 0.236 0.233 0.228 0.228 0.244 0.260 0.246 0.261 0.261 0.267 2015 0.262 0.266 0.278 0.283 0.290 0.299 0.320 0.330 0.337 0.357 0.374 0.400 2016 0.446 0.467 0.506 0.525 0.552 0.576 0.588 0.614 0.634 0.654 0.678 0.719 2017 0.751 0.777 0.821 0.884 0.925 0.978 1.051 1.084 1.111 1.143 1.172 1.239 2018 1.350 1.412 1.524 1.661 1.755 1.854 1.944 1.998 2.063 2.144 2.208 2.291 2019 2.355 2.392 2.436 2.445 2.449 2.428 2.379 2.341 2.280 2.190 2.103 2.043 2020 1.967 1.912 1.787 1.648 1.363 1.217 0.920 0.784 0.685 0.620 0.576 0.540 Home | Open Government | Careers | Contact | Calendar Home PMIA Home Contacts Time Deposits LAIF Search Page 210 of 623 10/25/22, 8:58 AM PMIA Average Monthly Effective Yields https://www.treasurer.ca.gov/pmia-laif/historical/avg_mn_ylds.asp 2/2 Home | Comments | Disclosure Notice | Privacy Notice | Accessibility Statement | Unclaimed Property | Site Map | Download Adobe Reader © 2022 California State Treasurer's Office Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 0.458 0.407 0.357 0.339 0.315 0.262 0.221 0.221 0.206 0.203 0.203 0.212 2022 0.234 0.278 0.365 0.523 0.684 0.861 1.090 1.276 1.513 Page 211 of 623 AGENDA REPORT Department: Finance Prepared by: Karla Apalategui, Sr. Accounting Assistant Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Warrant Register #16 for the period of 10/14/22 through 10/20/22 in the amount of $2,081,927.31 RECOMMENDATION: Ratify Warrants Totaling $2,081,927.31 BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: Per Government Section Code 37208, below are the payments issued for period 10/14/22 – 10/20/22. Consistent with Department of Finance’s practice, listed below are all payments above $50,000. Vendor Check/Wire Amount Explanation Kaiser Foundation 360329 228,262.13 Group# 104220 – November 2022 ARJIS 360357 79,937.00 ARJIS FY2023 Enterprise Fleet Mgmt 360374 56,812.02 Enterprise Fleet Lease Management WSP USA Inc 360426 55,708.81 Focused General Plan Update Public Emp Ret System 221014 268,987.43 Service Period 9/20/22 – 10/3/22 FINANCIAL STATEMENT: Warrant total $2,081,927.31 RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Not Applicable ENVIRONMENTAL REVIEW: This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBITS: Warrant Register No. 16 Page 212 of 623 PAYEE DESCRIPTION CHK NO DATE AMOUNT KAISER FOUNDATION HEALTH PLAN GROUP #104220 - NOVEMBER 2022 360329 10/17/2022 228,262.13 ALLSTATE SECURITY INVICTA/ALLSTATE SECURITY/SEC GUARD SERVS 360330 10/17/2022 8,079.59 ALLSTATE SECURITY INVICTA SECURITY DBA ALLSTATE/LIBRARY 360331 10/17/2022 2,782.36 AMAZON AMAZON/LIBRARY/COMPUTER CENTER 360332 10/17/2022 4,805.37 BAKER & TAYLOR BAKER & TAYLOR/BOOKS/FY23 360334 10/17/2022 3,785.80 CALIFORNIA LIBRARY ASSOCIATION RFW- CA LIBRARY ASSN/IND. MEMBERSHIP 360335 10/17/2022 120.00 DEMCO INC DEMCO/LABEL PROTECTORS/FY23 360336 10/17/2022 117.34 EBSCO INFORMATION SERVICES EBSCO- DATABASE SUBSCRIPTION RENEWAL 360337 10/17/2022 17,706.00 HUSSAIN MILEAGE REIMBURSEMENT - TECHNICAL TRAINING 360338 10/17/2022 195.63 INTERNATIONAL INSTITUTE OF CODE MEMBERSHIP RENEWAL - IIMC 360339 10/17/2022 255.00 LEXIA LEARNING SYSTEMS LLC RFW-LEXIA LEARNING/ANNUAL SUBSCRIPTION 360340 10/17/2022 1,150.00 MIDWEST TAPE, LLC MIDWEST TAPE/BLU-RAYS/FY23 360341 10/17/2022 1,060.09 MIDWEST TAPE, LLC MIDWEST TAPE/BLU-RAYS/FY23 360342 10/17/2022 297.93 NEWSBANK INC RFW- NEWSBANK/ANNUAL SUBSCRIPTION/FY23 360343 10/17/2022 5,533.00 OCLC, INC RFW/OCLC SUBSCRIPTION 9/22-8/23/LIBRARY 360344 10/17/2022 12,287.18 PORTES MILEAGE REIMBURSEMENT 360345 10/17/2022 87.33 SERRA COOPERATIVE LIBRARY RFW- SERRA COOPERATIVE LIBRARY SYSTEM 360347 10/17/2022 3,382.00 SIRSIDYNIX SIRSI DYNIX- CONSULTING/PROJECT MGMT/FY2 360348 10/17/2022 1,510.00 SMART SOURCE OF CALIFORNIA LLC MOP 63845/BUSINESS CARDS- RUIZ, ROBERTS, 360349 10/17/2022 126.93 STAPLES BUSINESS ADVANTAGE MOP 45704/STAPLES/OFFICE SUPPLIES/FY23 360350 10/17/2022 641.60 THOMSON REUTERS WEST THOMSON REUTERS WEST / CAO 360351 10/17/2022 8,699.02 T-MOBILE MOBILE USA INC. T-MOBILE/CLLS GRANT/CONTRACT SERVICES 360352 10/17/2022 1,013.76 TUMBLEWEED PRESS INC RFW- TUMBLEWEED PRESS/SUBSCRIPTION 360353 10/17/2022 799.00 WORTH AVE GROUP, LLC WORTH AVE. GROUP- HOT SPOTS, CHROMEBOOKS 360354 10/17/2022 3,196.00 2-1-1 SAN DIEGO CITY UNRESTRICTED CONTRIBUTION 360355 10/20/2022 11,716.40 ALDEMCO FOOD / NUTRITION CENTER 360356 10/20/2022 2,557.72 ARJIS ARJIS FY 2023 360357 10/20/2022 79,937.00 ASSI SECURITY INC PROVIDE SECURITY SERVICES AND REPAIRS 360358 10/20/2022 3,300.00 AYDELOTTE REIMB FOOD CASE 2221828 360359 10/20/2022 206.41 BAHRI CITATION REFUNDS - SEPTEMBER 2022 360360 10/20/2022 275.00 BRINK'S INCORPORATED TRANSPORTATION - BILLING PERIOD 10/1/22 360361 10/20/2022 391.76 CALIXTO REIMB FOOD CASE 2221828 360362 10/20/2022 58.00 CANON SOLUTIONS AMERICA INC. CANON PLOTTER EQUIPMENT USAGE 360363 10/20/2022 139.63 CASTRO CITATION REFUNDS - SEPTEMBER 2022 360364 10/20/2022 10.00 CHIEF LEADERSHIP TRAINING CHIF LEADERSHIP 360365 10/20/2022 1,500.00 CIVICPLUS, LLC MUNICIPAL CODE CODIFICATION - CIVIC PLUS 360366 10/20/2022 399.00 CORODATA RECORDS OFFSITE FILE STORAGE - CORODATA 360367 10/20/2022 52.50 CYRACOM INTERNATIONAL, INC TRANSLATION SVC FOR DISPATCH 360368 10/20/2022 71.50 DAY WIRELESS SYSTEMS COMM EQPMT MNTNCE SVC FY23/FIRE 360369 10/20/2022 1,537.50 DEAN GAZZO ROISTACHER LLP LIABILITY CLAIM COST 360370 10/20/2022 3,040.45 DEAN GAZZO ROISTACHER LLP LIABILITY CLAIM COST 360371 10/20/2022 580.00 DEAN GAZZO ROISTACHER LLP LIABILITY CLAIM COST 360372 10/20/2022 200.00 DEPARTMENT OF JUSTICE NEW FINGERPRINT TEST RESULTS - SEPTEMBER 360373 10/20/2022 160.00 ENTERPRISE FLEET MANAGEMENT ENTERPRISE FLEET LEASE MANAGEMENT 360374 10/20/2022 56,812.02 EXPERIAN CREDIT CHECKS 360375 10/20/2022 49.65 EXPRESS PIPE AND SUPPLY CITYWIDE PLUMBING PARTS, MATERIALS TOOL 360376 10/20/2022 27.62 G2SOLUTIONS, INC NEW EMPLOYEE FINGERPRINT TEST SUBMISSION 360377 10/20/2022 3.75 WARRANT REGISTER # 16 10/20/2022 1/3Page 213 of 623 PAYEE DESCRIPTION CHK NO DATE AMOUNT WARRANT REGISTER # 16 10/20/2022 GONZALES REIMB- SLI SHERMAN BLOCK SUPERVISORY 360378 10/20/2022 233.28 HALL CITATION REFUNDS - SEPTEMBER 2022 360379 10/20/2022 80.00 HUERTA JR REIMBURSEMENT - RUBEN HUERTA PUCHASE 360380 10/20/2022 58.15 HYATT REGENCY ORANGE COUNTY HOTEL CACEO CONFERENCE SORIANO / NSD 360381 10/20/2022 1,031.32 HYATT REGENCY ORANGE COUNTY HOTEL CACEO CONFERENCE GONZALEZ / NSD 360382 10/20/2022 509.81 HYATT REGENCY ORANGE COUNTY HOTEL CACEO CONFERENCE SARMIENTO / NSD 360383 10/20/2022 509.81 LASER SAVER INC MOP 04840 SUPPLIES PD 360384 10/20/2022 240.17 LEXIPOL LLC TRAINING BULLETINS 360385 10/20/2022 5,758.83 MAN K9 INC CANINE SUPPLIES FOR TRAINING 360386 10/20/2022 1,215.39 MASON'S SAW MOP 45729 EQUIPMENT SUPPLIES & REPAIR 360387 10/20/2022 485.24 MAUREEN KANE & ASSOCIATES, INC TECHNICAL CLASS FOR CITY CLERKS TRAINING 360388 10/20/2022 1,500.00 NATIONAL CITY CHAMBER OF CM # 00018 - ECONOMIC DEVELOPMENT ACTIVING 360389 10/20/2022 675.00 NATIONAL CREDIT REPORTING JUNE-2022 CRIMINAL REPORT FOR SECTION 360390 10/20/2022 365.60 NGUOI VIET TODAY NEWS PUBLIC NOTICING - ELECTION - NGUOI VET NOTICE 360391 10/20/2022 30.00 OFFICE SOLUTIONS BUSINESS HVL525, HON MESH HIGH BACK TASK CHAIR 360392 10/20/2022 322.23 OMNI PACIFIC COUNTER AREA FOR RECORDS REMODEL 360393 10/20/2022 3,108.84 PADRE JANITORIAL SUPPLIES CONSUMABLES / NUTRITION 360394 10/20/2022 99.96 PALOMAR HEALTH SART EXAMS 360395 10/20/2022 1,350.00 PARRA SUPERVISORS ACADEMY LUNCH REIMBURSEMENT 360396 10/20/2022 200.00 PARTS AUTHORITY METRO LLC MOP 75943 AUTO SUPPLIES - PW 360397 10/20/2022 315.16 PORTES SUPERVISORS ACADEMY REIMBURSEMENT 360398 10/20/2022 131.11 POSITIVE PROMOTIONS INC EF20:JR FIREFIGHTER OPEN HOUSE, ITEM 360399 10/20/2022 226.94 PRO BUILD COMPANY MOP 45707 GENERAL SUPPLIES - PW 360400 10/20/2022 5,397.13 PROFESSIONAL SEARCH GROUP LLC TEMP PLACEMENT- YVETTE CELAYA 360401 10/20/2022 7,903.50 PRUDENTIAL OVERALL SUPPLY MOP 45742 LAUNDRY SERVICES- PW 360402 10/20/2022 365.35 S D COUNTY SHERIFF'S DEPT CAL ID COSTS JULY 1- DECEMBER 31, 2022 360403 10/20/2022 7,913.00 SAN DIEGO MECHANICAL ENERGY PREVENTATIVE MAINTENANCE FOR HVAC 360404 10/20/2022 4,738.00 SAN DIEGO REGIONAL PUBLIC TRAINING 132ND REGIONAL ACADY PETTY CASH 360405 10/20/2022 8.00 SANDAG REIM CK#00038892 ANNUAL DUES FY23 360406 10/20/2022 400.00 SASI MONTHLY TRUST ACCOUNTING 360407 10/20/2022 61.30 SDG&E GAS AND ELECTRIC FOR FACILITIES FOR FY23 360408 10/20/2022 4,448.36 SO CAL PPE, LLC TURNOUT COAT AND PANTS CLEANING/ FIRE 360409 10/20/2022 82.50 STAPLES BUSINESS ADVANTAGE MOP 20468 SUPPLIES PD 360410 10/20/2022 3,404.51 SWEETWATER AUTHORITY WATER BILL FOR FACILITIES FY 2023~ 360411 10/20/2022 22,650.58 SYMBOLARTS, LLC MCGOUGH DETECTIVE BADGE 360412 10/20/2022 161.38 SYSCO SAN DIEGO INC FOOD / NUTRITION CENTER 360413 10/20/2022 2,582.98 THE COUNSELING TEAM EMPLOYEE SUPPORT SVCS 360415 10/20/2022 800.00 THE COUNSELING TEAM TRAINING TUITION T2672 CAMACHO 360416 10/20/2022 199.00 U S BANK PDTRAINING CRT CRD 360417 10/20/2022 12,670.23 U S BANK BUILDING&FIRE/US BANK CREDIT STATEMENT 360418 10/20/2022 1,962.68 U S BANK US BANK CREDIT CARD STATEMENT - CITY CLERK 360419 10/20/2022 666.02 U S BANK TRAINING TRAVEL T2717 360420 10/20/2022 438.96 UNDERGROUND SERVICE ALERT UNDERGROUND SERVICE ALERT FY 2023 360421 10/20/2022 429.08 VULCAN MATERIALS COMPANY ASPHALT, TACK, 3/8 SHEET FY 2023 360422 10/20/2022 754.25 WEST PAYMENT CENTER INVESTIGATIVE SVCS 360423 10/20/2022 660.75 WILLY'S ELECTRONIC SUPPLY MOP 45763 ELETRIC SUPPLIES PW 360424 10/20/2022 35.96 WOODRUFF, SPRADLIN & SMART APC RSWA - 2ND QTR LEGAL SERVICES 360425 10/20/2022 7,750.00 2/3Page 214 of 623 PAYEE DESCRIPTION CHK NO DATE AMOUNT WARRANT REGISTER # 16 10/20/2022 WSP USA INC FOCUSED GENERAL PLAN UPDATE 360426 10/20/2022 55,708.81 A/P Total 629,558.14 WIRED PAYMENTS PUBLIC EMP RETIREMENT SYSTEM SERVICE PERIOD 9/20/22 - 10/3/22 221014 10/14/2022 268,987.43 PAYCHEX BENEFIT TECH INC BENETRAC ESR SERVICES BASE FEE - OCTOBER 751984 10/14/2022 597.74 PAYROLL Pay period Start Date End Date Check Date 22 10/4/2022 10/17/2022 10/26/2022 1,182,784.00 GRAND TOTAL 2,081,927.31 3/3Page 215 of 623 AGENDA REPORT Department: Finance Prepared by: Karla Apalategui, Sr. Accounting Assistant Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Warrant Register #17 for the period of 10/21/22 through 10/27/22 in the amount of $1,036,673.44 RECOMMENDATION: Ratify Warrants Totaling $1,036,673.44 BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: Per Government Section Code 37208, below are the payments issued for period 10/21/22 – 10/27/22. Consistent with Department of Finance’s practice, listed below are all payments above $50,000. Vendor Check/Wire Amount Explanation Azteca Systems LLC 360436 71,400.00 Cityworks Annual Renewal 11/1/22 Chen Ryan Assoc 360440 87,200.04 CIP 21-25 West 19th Street Greenway Eagle Paving Co 360456 151,526.25 CIP 19-18 National City Blvd Bikeway SDG&E 360484 91,087.60 Gas & Electric for Facilities FY23 Tri-Group Construction 360497 110,168.65 CIP 19-33 Paradise Creek Educational Park Public Emp Ret System 221027 269,671.93 Service Period 10/4/22 – 10/17/22 FINANCIAL STATEMENT: Warrant total $1,036,673.44 RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Not Applicable ENVIRONMENTAL REVIEW: This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBITS: Warrant Register No. 17 Page 216 of 623 PAYEE DESCRIPTION CHK NO DATE AMOUNT UNITED STATES TREASURY 3RD QTR 2022 - 941 / 95-6000749 360427 10/27/2022 20.11 ACE UNIFORMS & ACCESSORIES INC WALTERS/HERNANDEZ'/STINNETT NAME PLATES 360428 10/27/2022 229.16 ADMINSURE INC WORKERS' COMPENSATION CLAIMS - NOVEMBER 360429 10/27/2022 8,353.00 AIR POLLUTION CONTROL DISTRICT APCD DISTRICT FEES FOR FIRE STATION 34 - 360430 10/27/2022 1,473.80 ALDEMCO FOOD / NUTRITION CENTER 360431 10/27/2022 2,327.24 ALL FRESH PRODUCTS CONSUMABLES / NUTRITION 360432 10/27/2022 1,747.20 AMERICAN FOR THE ARTS ARTS & ECONOMIC PROSPERITY - LIBRARY 360433 10/27/2022 2,550.00 ANSER ADVISORY MANAGEMENT, LLC CIP 22-35 GRANT MANAGEMENT VILLA CIVIL - 360434 10/27/2022 12,016.85 AT&T AT&T & SBC ANNUAL PHONE SERVICE FOR FY23 360435 10/27/2022 17,111.09 AZTECA SYSTEMS LLC CITYWORKS ANNUAL RENEWAL 11/1/22 - 360436 10/27/2022 71,400.00 BOUND TREE MEDICAL LLC CASE, PELICAN 1550 EMS, ORANGE W/EMS -FIN 360437 10/27/2022 366.84 CANON SOLUTIONS AMERICA INC. CANON PLOTTER MAINT SERVICE FOR OCTOBER 360438 10/27/2022 73.20 CDWG VEEAM BACKUP SOFTWARE 360439 10/27/2022 18,046.02 CHEN RYAN ASSOCIATES INC CIP 21-25 WEST 19TH ST GREENWAY - ENG/PW 360440 10/27/2022 87,200.04 CITY OF IMPERIAL BEACH SD BAY WATERSHED IMPROVEMENT PLAN 360441 10/27/2022 21,105.00 CIVICPLUS, LLC CIVIC PLUS - MUNICIPAL CODE CODIFICATION 360442 10/27/2022 475.00 CLEAN HARBORS ENVIRONMENTAL HOUSEHOLD HAZARDOUS WASTE AUGUST 2022 - 360443 10/27/2022 1,933.57 COMMERCIAL AQUATIC SERVICE INC CHEMICALS FOR MUNICIPAL POOL - FACILITIES 360444 10/27/2022 1,077.94 CORELOGIC SOLUTIONS LLC REALQUEST SUBSCRIPTION 7/1/22 -6/30/23 360445 10/27/2022 4,050.00 COUNTY OF SAN DIEGO PUBLIC WORKS YARD HAZARDOUS WASTE - ENG 360446 10/27/2022 7,457.00 COUNTY OF SAN DIEGO NEXTGEN REGIONAL COMMUNICATIONS SYSTEM 360447 10/27/2022 7,923.00 COX COMMUNICATIONS COX DATA, VIDEO SERVICES FY23 360448 10/27/2022 2,164.38 COZZINI BROS., INC. KNIFE/DELI SLICER/CAN OPENER SHARPENING 360449 10/27/2022 36.00 CPOA NCPD YOUNG HERNANDEZ SULLIVAN 360450 10/27/2022 1,050.00 CPRS DISTRICT 12 CPRS DISTRICT 12 NOVEMBER WORKSHOP 360451 10/27/2022 60.00 DAY WIRELESS SYSTEMS RADIO REPAIR 360452 10/27/2022 615.00 DE LAGE LANDEN DLL 20 SHARP COPIERS LEASE FOR FY23 360453 10/27/2022 2,939.63 DEPT OF JUSTICE DOJ FINGERPRINTING 360454 10/27/2022 290.00 D-MAX ENGINEERING INC CIP 22-45 WASTEWATER SERVICES AND FOG 22 360455 10/27/2022 9,971.50 EAGLE PAVING COMPANY INC CIP 19-18 NATIONAL CITY BLVD BIKEWAY - ENG 360456 10/27/2022 151,526.25 EL LATINO NEWSPAPER ELECTION NOTICING - EL LATINO NEWSPAPER 360457 10/27/2022 480.00 FIT TO WORK INC COMPREHENSIVE ERGONOMIC EVALUATIONS 360458 10/27/2022 640.00 GEOSYNTEC CONSULTANTS INC CIP 22-08 CNC ENCAMPMENT CLEANUP - ENG/PW 360459 10/27/2022 4,328.50 GONZALEZ REIMBURSEMENT PC 832 / NSD 360460 10/27/2022 252.00 GRAINGER MOP 65179 GENERAL SUPPLIES- PW 360461 10/27/2022 4,324.23 HDR ENGINEERING, INC. CIP 22-48 CCTV INSPECTION AND CLEANING SVCS 360462 10/27/2022 8,653.00 HOME DEPOT CREDIT SERVICES GENERAL SUPPLIES NEEDED FOR PARKS FY 23 360463 10/27/2022 174.57 IPS GROUP INC PARKING MANAGEMENT ENF SVCS COLLECTION 360464 10/27/2022 21,699.82 KTUA CIP 19-44 8TH ST AND ROOSEVELT CALTRANS 360465 10/27/2022 7,784.30 L N CURTIS & SONS BLACK MONSTER DUFFEL BAG /FIRE 360466 10/27/2022 2,175.00 LASER SAVER INC PRINTER SUPPLIES / NUTRITION 360467 10/27/2022 706.66 LEIGHTON CONSULTING INC CIP 22-30 SAFE ROUTES TO SCHOOL PED ENHA 360468 10/27/2022 2,109.79 MASON'S SAW MOP 45729 EQUIPMENT SUPPLIES AND REPAIR 360469 10/27/2022 221.51 NETWRIX CORPORATION NETWRIX AUDITING SOFTWARE RENEWAL 360470 10/27/2022 8,073.20 OFFICE SOLUTIONS BUSINESS MOP 83778 OFFICE SUPPLY/ FINANCE 360471 10/27/2022 30.65 O'REILLY AUTO PARTS MOP 75877 AUTO SUPPLIES- PW 360472 10/27/2022 36.78 PACIFIC STATES PETROLEUM INC HYDRAULIC OIL, ENGINE OIL, AND VEHICLE 360473 10/27/2022 1,209.22 WARRANT REGISTER # 17 10/27/2022 1/2Page 217 of 623 PAYEE DESCRIPTION CHK NO DATE AMOUNT WARRANT REGISTER # 17 10/27/2022 PARTS AUTHORITY METRO LLC MOP 75943 AUTO SUPPLIES PW 360474 10/27/2022 540.58 POWERSTRIDE BATTERY CO INC MOP 67839 GENERAL SUPPLIES- PW 360475 10/27/2022 120.23 PRO BUILD COMPANY MOP 45707 GENERAL SUPPLIES- PW 360476 10/27/2022 251.95 PROFESSIONAL SEARCH GROUP LLC TEMP PLACEMENT CAROLINA CUMMINGS 360477 10/27/2022 840.00 PRUDENTIAL OVERALL SUPPLY MOP 45742 LAUNDRY SERVICES- PW 360478 10/27/2022 821.50 RAMIREZ TRAINING REIM PRKING T2710 360479 10/27/2022 85.00 RANDALL LAMB ASSOCIATES INC CIP 19-42 NCPD STANDBY POWER CONVERSION 360480 10/27/2022 22,006.25 ROADONE MOP 02420 TOWING PD 360481 10/27/2022 180.00 SAN DIEGO HYDRAULICS MOP 85005 AUTO SUPPLIES- PW 360482 10/27/2022 5.05 SAN DIEGO UNION TRIBUNE NOTICE INVITING BIDS - CIP 22-01 AND CIP 360483 10/27/2022 2,144.40 SDG&E GAS AND ELECTRIC FOR FACILITIES FOR FY23 360484 10/27/2022 91,097.60 SEAPORT MEAT COMPANY FOOD / NUTRITION CENTER 360485 10/27/2022 827.70 SITEONE LANDSCAPE SUPPLY LLC MOP 69277 LANDSCAPE SUPPLIES- PW 360486 10/27/2022 73.75 SMART & FINAL MOP 45756 CASA YOUTH SNACKS 360487 10/27/2022 305.26 SPOK INC SPOK METROCALL PAGING FY23 360488 10/27/2022 676.00 STAPLES BUSINESS ADVANTAGE MOP #45704/OFFICE SUPPLIES/HR 360489 10/27/2022 506.06 SWAGIT PRODUCTION LLC SWAGIT WEBCAST FOR FY23 360490 10/27/2022 5,762.49 SWEETWATER AUTHORITY WATER BILL FOR FACILITIES FY 2023~ 360491 10/27/2022 105.16 SYSCO SAN DIEGO INC FOOD / NUTRITION CENTER 360492 10/27/2022 2,341.91 TACFLOW ACADEMY TRAINING TUITN BALLISTIC HIRSH SHAFER 360493 10/27/2022 3,000.00 TERMINIX INTERNATIONAL CITY OWNED FACILITIES ONGOING PEST 360494 10/27/2022 1,598.00 THE PUN GROUP LLP PB1 - AUDIT FOR THE YEAR ENDED JUNE 30, 2022 360495 10/27/2022 20,000.00 TRANS-LANG TRANSLATION SERVICES - TRANS-LANG 360496 10/27/2022 1,249.50 TRI-GROUP CONSTRUCTION AND DEV CIP 19-33 PARADISE CREEK EDUCATIONAL PARK 360497 10/27/2022 110,168.65 T'S & SIGNS MOVIES IN THE PARK OCTOBER MOVIE BANNERS 360498 10/27/2022 313.20 VALLEY INDUSTRIAL SPECIALTIES MOP 46453 BUILDING SUPPLIES- PW 360499 10/27/2022 403.37 VELOCITY TRUCK CENTERS ENGINE AND TRANSMISSION PARTS 360500 10/27/2022 84.80 VERIZON WIRELESS VERIZON CELLULAR SERVICES FOR FY23 360501 10/27/2022 2,548.90 WESTFLEX INDUSTRIAL MOP 63850 GENERAL SUPPLIES- PW 360502 10/27/2022 328.94 WILLY'S ELECTRONIC SUPPLY MOP 00351 SUPPLIES PD 360503 10/27/2022 127.21 A/P Total 767,001.51 WIRED PAYMENTS PUBLIC EMP RETIREMENT SYSTEM SERVICE PERIOD 10/4/22 - 10/17/22 221027 10/27/2022 269,671.93 GRAND TOTAL 1,036,673.44$ 2/2Page 218 of 623 AGENDA REPORT Department: City Clerk's Office Prepared by: Carlos Aguirre, Director Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Public hearing and Adoption of an Ordinance of the City Council of the City of National City, California, amending Title 9 of the National City Municipal Code by adding Chapter 9.64 pertaining to Mobilehome Park Rent Stabilization. RECOMMENDATION: Conduct the public hearing and consider the ordinance for adoption. BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: The negative economic effects of COVID-19 and the increase of homelessness throughout the region have exacerbated the ongoing housing crisis affecting National City. The County of San Diego recently declared a public health crisis due to the rapid increase in homelessness on September 22, 2022. The National City City Council has received numerous comments and complaints regarding significant rent increases on mobilehome space rents. The supply of mobilehome parks is very limited in National City, with little to no vacancies advertised at most mobilehome parks. The limited supply of such spaces and mobilehomes contributes to escalating rents in a manner that would, in absence of regulation, result in the elimination of mobilehomes as a source of affordable housing for seniors, veterans, and families. The State of California’ Mobilehome Residency Law (“MRL”), found in California Civil Code Section 798 establishes the rights and responsibilities of homeowners and park management including the terms and conditions for tenancies. The MRL was recently amended by Assembly Bill 978 which prohibits management of a qualified mobilehome park from increasing the gross rental rate for a tenancy for a mobilehome space more than 3% plus the percentage change in the cost of living, as defined, or 5%, whichever is lower, of the lowest gross rental rate charged at any time during the immediately preceding 12 months. Assembly Bill 978 also prohibits management of a qualified mobilehome park from increasing the gross rental rate for a tenancy in more than 2 increments over a 12-month period, after the tenant maintains a tenancy over a 12-month period. The State’s law defines “qualified mobilehome park” as a mobilehome park that is located within and governed by the jurisdiction of two or more incorporated cities. National City has four mobilehome parks with one park currently covered by the rent cap implemented by AB 978 since a portion of the park is located in City of San Diego and a portion in National City. Page 219 of 623 National City Mobilehome Parks Mobilehome Park Name Address Approx. No. of Spaces AB 978 Qualified Mobilehome Park Bonita Paradise 3131 Valley Road, National City 167* Yes Bonita Vista 2621 Sweetwater Road, National City 87 No Happy Hollow 999 E. Division Street, National City 90 No Keystone 3221 National City Blvd., National City 91 No *approximately half of the total units are in the City of National City There are six jurisdictions in County of San Diego that have ordinances regulating rent in mobilehome parks. The most recent ordinance was adopted by emergency by the City of Imperial Beach on October 5, 2022 and does not allow rent to be increased more than 3% during the term of the ordinance. The term of the ordinance for Imperial Beach would end 60 days after the end of the local COVID-19 emergency or the County of San Diego’s declaration of a public health crisis due to the rapid increase in homelessness, whichever occurs first. Mobile Home Rent Stabilization Ordinances in San Diego County City Year of Ordinance No. of Mobile Home Parks No. of Units Rent Cap Structure Chula Vista 1997 30 3414 100% CPI < 3%, 75% CPI > 3% Escondido 1988 30 3185 Board/ Commission Review Imperial Beach 2022 * * 3% cap during State of Emergency Oceanside 1982 20 2401 100% CPI, 8% cap San Marcos 1980 12 2312 Board/ Commission Review Santee 1989 11 2004 See Title 2, Chapter 2.44 of Santee Municipal Code *data not available The attached Mobilehome Park Rent Stabilization Ordinance (“Ordinance”) for City Council’s consideration would implement the rent cap adopted by the State of California to mobilehome parks in National City not currently regulated by the provisions of AB 978. The Ordinance would prohibit management of a mobilehome park from increasing the gross rental rate for a tenancy for a mobilehome space more than 3% plus the percentage change in the San Diego Metropolitan Area Urban (broader base) Consumer Price Index, as defined, or 5%, whichever is lower, from the lowest gross rental rate charged at any time during the immediately preceding 12 months. The Ordinance would not allow the rent to be increased more than two times in any 12-month period during the term of the Ordinance. The Ordinance provides for both civil and criminal remedies if rent in excess of the maximum rent allowable is collected. After the first public hearing was held on November 1, 2022, the City Council requested additional information on the rent increase noticing requirements under the Mobilehome Residency Law, the current zoning of each mobile home park, and information on other retroactive Ordinances and the impacts of retroactivity. Rent Noticing Requirements The Mobile Home Residency Law requires park management to provide a homeowner written notice of any increase in rent at least 90 days before the increase takes effect. (Civil Code Section 798.30). Page 220 of 623 National City Mobilehome Park Zoning Mobilehome Park Name Address Zoning Overlay Bonita Paradise 3131 Valley Road RS-2 Small Lot Residential Mobile Home Park Bonita Vista 2621 Sweetwater Road RS-2 Small Lot Residential Mobile Home Park Happy Hollow 999 E. Division Street RM-2 High Density Multi- Family Residential Mobile Home Park Keystone 3221 National City Blvd. CA- Commercial Automotive Mobile Home Park All of the existing mobilehome parks are under a Mobile Home Park Overlay Zone (“MHP”) which is found in Section 18.29.060 of the National City Municipal Code. The purpose of the MHP overlay zone is to provide for appropriate locations for mobile home parks to be established, maintained, and protected. New mobilehome parks are subject to conditional use permit approval. Retroactivity of Ordinance The City Council began acknowledging concerns about rent increases at mobilehome parks in August 2022 primarily due to a 20% increase that occurred on July 1, 2022 at Keystone Trailer Park. In response to the concerns, the proposed National City Ordinance was introduced on November 1, 2022 with a retroactive cap on rent increases on or after July 1, 2022. Similarly, AB 978 was drafted and approved retroactively by the State of California in an effort to mitigate the impacts of high rent increases experienced by the Rancho La Paz Mobilehome Park in Anaheim and Fullerton, California. Chula Vista’s rent stabilization ordinance was only retroactive to the first reading and the urgency ordinance adopted most recently in Imperial Beach was not retroactive but made effective upon adoption of the ordinance. Staff did not find any other rent stabilization ordinances approved with retroactive clauses in the San Diego region. During the public hearing on November 1, 2022, the City Council received a request to consider amending the Ordinance to remove the retroactive date of July 1, 2022, and have the ordinance apply to rent increases on or after January 1, 2023. There was a second request to consider changing the retroactive date to August 1, 2022. The table below compares scenarios using Keystone Trailer Park as an example and assumes that the change in CPI will stay above 5%. Rent amounts are rounded to the nearest dollar. Scenario 1 assumes the Ordinance as currently proposed and retroactively applied to rent increases on or after July 1, 2022. Scenario 2 assumes a change in the proposed Ordinance to apply only to rent increases on or after January 1, 2023. Ordinance Scenarios Scenario 1 Scenario 2 Retroactive to rent increased on or after 7/1/2022 Applies to rent increases on or after 1/1/2023 Rent before 7/1/2022 $485 $485 Max Rent after 7/1/2022 $485 + (5% of $485) =$509 $585 Max Rent on or after 1/1/2023 $509 $585 + (5% of $485*) = $609 Max Rent on or after 7/1/ 2023 $509 + (5% of $509) =$534 $609 Max Rent on 1/1/ 2024 $534 $609 + (5% of $609) =$639 *$485 is the lowest rent 12 months prior. Page 221 of 623 The City Council reintroduced the Ordinance on November 15, 2022 with an amendment that removed the retroactive date of July 1, 2022 and made the Ordinance effective on rent increases on and after January 1, 2023. The Ordinance was also amended to expire on December 31, 2024 instead of June 30, 2024 to maintain the rent cap for a full two years. FINANCIAL STATEMENT: The financial impacts to the City are mostly the cost of creating and processing the Ordinance into municipal law. The City designed the Ordinance to limit the administrative burden on the City by avoiding the creation of a specific City program or oversight or ad hoc committee and allow mobilehome park residents to access non-profit tenant counseling and legal services to assist with filing for a remedy. In National City, CSA San Diego County, a local non-profit tenant and property owner-counseling agency, can assist tenants and property owners free of charge. The costs of providing information on the Ordinance through the City’s website and other media are also minor. RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Housing and Community Development ENVIRONMENTAL REVIEW: This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Second Reading and Adoption EXHIBITS: Exhibit A – Ordinance (REDLINE) Exhibit B – Ordinance (Final) Page 222 of 623 1 (REDLINE VERSION) ORDINANCE NO. 2022 – AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, AMENDING TITLE 9 OF THE NATIONAL CITY MUNICIPAL CODE BY ADDING CHAPTER 9.64 PERTAINING TO MOBILEHOME PARK RENT STABILIZATION NOW, THEREFORE, the City Council of the City of National City does ordain as follows: Section 1. FINDINGS. The City Council of the City of National City hereby finds and declares as follows: WHEREAS, The City Council finds that there is a severe housing crisis within the City of National City and on September 27, 2022, the County of San Diego voted to unanimously to declare a public health crisis for homelessness throughout the County of San Diego; and WHEREAS, the housing crisis has been exacerbated by the COVID-19 outbreak and further substantial and long term economic impacts caused by COVID-19 and the County public health crisis on homelessness are anticipated, leaving tenants vulnerable to eviction and rent increases; and WHEREAS, a tenant’s sudden and immediate displacement caused by an eviction or unsustainable rent increase can have a profound impact in the financial, emotional, physical health, and professional stability of a tenant’s life, which impacts are compounded by the ongoing COVID-19 emergency and County public health crisis on homelessness; and WHEREAS, the City Council finds that there is presently, within the City of National City, a shortage of rental spaces for the location of mobilehomes, and an inadequate number of mobilehome rental spaces to meet the total demand in this City for those spaces; and WHEREAS, the City Council further finds that the unique nature of the ownership of a mobilehome within a mobilehome park makes mobilehome owners particularly vulnerable to the threat of loss of their investment in their mobilehome. Due to the high cost of moving mobilehomes; the potential for damage resulting from moving mobilehomes; the requirements for installing a mobilehome, including permits, landscaping and site preparation; the lack of alternative mobilehome spaces for mobilehome owners; and the substantial investment mobilehome owners make in their coaches, mobilehome owners lack the ability to move their mobilehomes without a substantial loss in their investment. This lack of mobility, coupled with a shortage of rental spaces, provides park owners with the ability to establish excessive and Page 223 of 623 2 unconscionable rents which, if unregulated, would result in the impairment of a mobilehome owner’s investment in their home; and WHEREAS, the City Council further finds that the limited supply of mobilehome rental spaces available in this City would, in the absence of space rent regulation, allow for an unconscionable loss of the resale value of mobilehomes by existing mobilehome park residents; and WHEREAS, The City Council further finds that mobilehomes comprise a significant form of housing available within the City of National City and can be a more affordable housing choice than single-family homes. The City Council finds that the supply of both mobilehome spaces and mobilehomes available for rent is not adequate to meet the demand, and that as a result, the limited supply of such spaces and mobilehomes contributes to escalating rents in a manner that would, in the absence of regulation, result in the elimination of mobilehomes as a more affordable housing choice; and WHEREAS, the City Council further finds that many of National City’s mobile home owners are seniors, veterans, and families seeking an affordable community environment in which to live; and WHEREAS, the City has been informed that, in at least one case, a mobilehome landlord has given notices of rent increases of 14% or more. These proposed rent increases would affect at least – units which are occupied by and thus disproportionately impact older Americans, persons with disabilities and low income families. NOW THEREFORE, it is the intent of the City Council in enacting this ordinance to protect mobilehome owners and mobile home park residents in mobilehome parks from excessive and unconscionable rent increases during the COVID-19 health crisis and the resulting economic uncertainties. SECTION 2. Title 9 of the National City Municipal Code is hereby amended by adding Chapter 9.64 to read as follows: Chapter 9.64 MOBILEHOME PARK RENT STABILIZATION ORDINANCE 9.64.010 Purpose 9.64.020 Definitions 9.64.030 General Applicability and Exemptions Page 224 of 623 3 9.64.040 Effective DateRetroactivity and Rent Rollback 9.64.050 Annual Permissive Rent Increases and Notices of CPI 9.64.060 Mobilehome Residents Right of Refusal 9.64.070 Retaliatory Eviction 9.64.080 Civil Remedies 9.64.090 Criminal Remedies 9.64.100 Severability 9.64.110 Sunset Provision 9.64.010 Purpose. A. The City Council intends by this chapter to protect mobilehome owners and mobile home park residents in mobilehome parks from excessive and unconscionable rent increases. B. The City Council intends by this chapter: 1. To prevent existing mobilehome owners, who are rendered largely incapable of moving their mobilehomes without suffering a substantial loss in their value, from loss of their investment and the resale value of their mobilehomes due to the fact that a new mobilehome resident is being charged excessive rents; 2. To protect and promote the availability of mobilehomes as a more affordable housing choice; and 3. To avoid immediate displacement caused by an eviction or unsustainable rent increases during the COVID-19 health crisis. 9.64.020 Definitions. Words used in this chapter shall have the meaning described to them in this section: A. “Mobilehome” is a structure designed for human habitation and for being moved on a street or highway under permit pursuant to Section 35790 of the California Vehicle Code. As used in this chapter, “mobilehome” has the same meaning as California Civil Code Section 798.3. B. “Manufactured home” is a unit built post June 15, 1976, that meets U.S. Department of Housing and Urban Development (HUD) specifications. The term “manufactured home” for the Page 225 of 623 4 purpose of this chapter only shall be synonymous with the term “mobilehome.” C. “Mobilehome space” means a portion of a mobilehome park designated or used for the occupancy of one mobilehome. D. “Mobilehome park” or “park” is an area of land where two or more mobilehomes or mobilehome spaces are rented, or held out for rent, to accommodate mobilehomes used for human habitation. E. “Mobilehome park owner” or “owner” means and includes the owner, lessor, operator, or manager of a mobilehome park. F. “Mobilehome owner” means a person who owns a mobilehome which is legally located in a mobilehome space within a mobilehome park in the City of National City. G. “Mobilehome resident” or “resident” means a person who occupies a mobilehome in a mobilehome park in the City of National City as a primary residence by virtue of having a rental agreement. “Mobilehome resident” or “resident” is inclusive of a mobilehome owner. H. “Rent” means the consideration, including any bonus, benefit or gratuity, demanded or received in connection with the use and occupancy of a mobilehome or mobilehome space in a mobilehome park, including services, or in connection with the transfer of a lease for a mobilehome space or the subleasing of a mobilehome space. “Rent” shall not include amounts paid by residents for such separately metered utilities or services, as provided in California Civil Code Section 798.41, or any separate charge for those fees, assessments or costs which may be charged to mobilehome residents pursuant to the California Civil Code. I. “Consumer Price Index” or “CPI” means the All Urban Consumers/All Items component of the San Diego Metropolitan Area U (broader base) Consumer Price Index prepared by the Bureau of Labor Statistics. If the United States Bureau of Labor Statistics does not publish the San Diego Metropolitan Area U (broader base) Consumer Price Index or there is no alternative CPI All Urban Consumers/All Items index published by the Bureau of Labor Statistics that applies to National City, CPI will be be defined as the California Consumer Price Index for All Urban Consumers for All Items as published by the California Department of Industrial Relations. J. “Percentage Change in CPI” means the percentage change in the CPI as defined above and computed as follows: For rent increases that take effect before August 1 of any calendar year, the following shall apply: (1) The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that. Page 226 of 623 5 (2) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that. For rent increases that take effect on or after August 1 of any calendar year, the following shall apply: (1) The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year. (2) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year The percentage change shall be rounded to the nearest one-tenth of 1 percent. 9.64.030 General applicability and exemptions. This chapter shall apply to all mobilehome parks, mobilehome park owners, mobilehome residents and mobilehomes in mobilehome parks within the City of National City, unless otherwise exempted by state law or the provisions of this chapter. This chapter shall not apply to leases for a term exceeding one year which are exempted by California Civil Code Section 798.17, so long as such leases contain all the required provisions for exemption, including a statement in the first sentence of the first paragraph, in at least 12 point type or capital letters, giving notice to the mobilehome resident that, by entering into the lease, the rent control provisions of this ordinance will be automatically superseded by the lease provisions regarding rent and rent increases. 9.64.040 Effective DateRetroactivity and rent rollback. Thehis ordinance is effective date of this ordinance is January 1, 2023 retroactive to July 1, 2022 and any rent increases occurring on or after the effective dateJuly 1, 2022 shall be in conformance with this ordinance. 9.64.050 Annual Permissive Rent Increases and Notices of CPI. A. Subject to subdivision (B), of this section management shall not over the course of any 12 month period, increase the gross rental rate for a tenancy in a mobile home park more than 3 percent plus the percentage change in the Consumer Price Index, or 5 percent, whichever is lower, of the lowest gross rental rate charged for tenancy at any time during the 12 months prior to the effective date of the increase. B. If the same homeowner maintains a tenancy over any 12 month period, the gross rental rate Page 227 of 623 6 for the tenancy shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this chapter governing gross rental rate increase. C. For a new tenancy in which no homeowner from the prior tenancy remains in lawful possession of the mobile home space, management may establish the initial rental rate not subject to subdivision (A). Subdivision (A) shall be applicable to subsequent increases after that initial rental rate has been established. D. Management shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each homeowner in accordance with Civil Code Section 798.30. 9.64.060 Mobilehome residents right of refusal. A mobilehome resident may refuse to pay any increase in rent which is in violation of the chapter. Such refusal to pay shall be a defense in any action brought to recover possession of a mobile home space or to collect a rent increase. 9.64.070 Retaliatory eviction In any action brought to recover possession of a mobile home or mobile home space, the court shall consider as grounds for denial any violation of this chapter. Further the determination that the action was brought in retaliation for the exercise of any rights conferred by this chapter shall be grounds for denial. 9.64.080 Civil remedies. A. Civil Action. Any person who demands, accepts, receives or retains any payment of rent in excess of the maximum rent allowable by this chapter shall be liable in a civil action, including unlawful detainer, to the person upon whom the demand was made or from whom the rent was accepted in an amount of up to triple the amount of such improperly collected rent, and for such reasonable attorney’s fees and costs as may be determined by the court. 9.64.090 Criminal remedies Any person committing a violation of this chapter shall be guilty of a misdemeanor. Any person convicted of a misdemeanor under the provision of this chapter shall be punished by a fine of not more than $1,000 or by imprisonment in the county jail for a period of six months in jail or by both such fine or imprisonment. The following nonexclusive acts, without limitation due to enumeration, shall constitute a criminal violation of this chapter, including the owner of a park if done by the owner’s agent with the knowledge and consent of the owner: Page 228 of 623 7 A. Knowingly demanding, accepting or retaining any rent in excess of the amount fixed by this chapter. B. Knowingly commencing, or threatening to commence, or maintain an eviction or unlawful detainer proceeding against a resident to for the failure to pay a rent in excess of the amount fixed pursuant to this chapter. 9.64.100 Severability. It is the intent of the City Council of the City of National City to supplement applicable state and federal law and not to duplicate or contradict such law, and this Ordinance shall be construed consistently with that intention. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of National City hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable. 9.64.110 Sunset Provision. This Chapter shall remain in effect for only two years after its effective date and as of December 31, 2024that date is repealed. SECTION 3. Environmental Determination. The City Council finds that the adoption and implementation of this ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the ordinance may have a significant effect on the environment, because this ordinance preserves the status quo and the ability of tenants/mobilehome owners to occupy their rental spaces. SECTION 4. This Ordinance shall take effect and be enforced thirty (30) days following its adoption by the City Council. SECTION 5. The City Clerk shall certify to the adoption of this Ordinance and shall publish in accordance with the law. INTRODUCED at a regular meeting of the City Council of the City of National City, held on this __ day of _______, 2022 Page 229 of 623 8 PASSED and ADOPTED this ______ day of ______________, 2022. _____________________________ Alejandra Sotelo-Solis, Mayor ATTEST: ____________________________ Luz Molina, City Clerk APPROVED AS TO FORM: ____________________________ Barry J. Schultz, Interim City Attorney Page 230 of 623 1 ORDINANCE NO. 2022 – AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, AMENDING TITLE 9 OF THE NATIONAL CITY MUNICIPAL CODE BY ADDING CHAPTER 9.64 PERTAINING TO MOBILEHOME PARK RENT STABILIZATION NOW, THEREFORE, the City Council of the City of National City does ordain as follows: Section 1. FINDINGS. The City Council of the City of National City hereby finds and declares as follows: WHEREAS, The City Council finds that there is a severe housing crisis within the City of National City and on September 27, 2022, the County of San Diego voted to unanimously to declare a public health crisis for homelessness throughout the County of San Diego; and WHEREAS, the housing crisis has been exacerbated by the COVID-19 outbreak and further substantial and long term economic impacts caused by COVID-19 and the County public health crisis on homelessness are anticipated, leaving tenants vulnerable to eviction and rent increases; and WHEREAS, a tenant’s sudden and immediate displacement caused by an eviction or unsustainable rent increase can have a profound impact in the financial, emotional, physical health, and professional stability of a tenant’s life, which impacts are compounded by the ongoing COVID-19 emergency and County public health crisis on homelessness; and WHEREAS, the City Council finds that there is presently, within the City of National City, a shortage of rental spaces for the location of mobilehomes, and an inadequate number of mobilehome rental spaces to meet the total demand in this City for those spaces; and WHEREAS, the City Council further finds that the unique nature of the ownership of a mobilehome within a mobilehome park makes mobilehome owners particularly vulnerable to the threat of loss of their investment in their mobilehome. Due to the high cost of moving mobilehomes; the potential for damage resulting from moving mobilehomes; the requirements for installing a mobilehome, including permits, landscaping and site preparation; the lack of alternative mobilehome spaces for mobilehome owners; and the substantial investment mobilehome owners make in their coaches, mobilehome owners lack the ability to move their mobilehomes without a substantial loss in their investment. This lack of mobility, coupled with a shortage of rental spaces, provides park owners with the ability to establish excessive and unconscionable rents which, if unregulated, would result in the impairment of a mobilehome owner’s investment in their home; and Page 231 of 623 2 WHEREAS, the City Council further finds that the limited supply of mobilehome rental spaces available in this City would, in the absence of space rent regulation, allow for an unconscionable loss of the resale value of mobilehomes by existing mobilehome park residents; and WHEREAS, The City Council further finds that mobilehomes comprise a significant form of housing available within the City of National City and can be a more affordable housing choice than single-family homes. The City Council finds that the supply of both mobilehome spaces and mobilehomes available for rent is not adequate to meet the demand, and that as a result, the limited supply of such spaces and mobilehomes contributes to escalating rents in a manner that would, in the absence of regulation, result in the elimination of mobilehomes as a more affordable housing choice; and WHEREAS, the City Council further finds that many of National City’s mobile home owners are seniors, veterans, and families seeking an affordable community environment in which to live; and WHEREAS, the City has been informed that, in at least one case, a mobilehome landlord has given notices of rent increases of 14% or more. These proposed rent increases would affect at least – units which are occupied by and thus disproportionately impact older Americans, persons with disabilities and low income families. NOW THEREFORE, it is the intent of the City Council in enacting this ordinance to protect mobilehome owners and mobile home park residents in mobilehome parks from excessive and unconscionable rent increases during the COVID-19 health crisis and the resulting economic uncertainties. SECTION 2. Title 9 of the National City Municipal Code is hereby amended by adding Chapter 9.64 to read as follows: Chapter 9.64 MOBILEHOME PARK RENT STABILIZATION ORDINANCE 9.64.010 Purpose 9.64.020 Definitions 9.64.030 General Applicability and Exemptions 9.64.040 Effective Date 9.64.050 Annual Permissive Rent Increases and Notices of CPI Page 232 of 623 3 9.64.060 Mobilehome Residents Right of Refusal 9.64.070 Retaliatory Eviction 9.64.080 Civil Remedies 9.64.090 Criminal Remedies 9.64.100 Severability 9.64.110 Sunset Provision 9.64.010 Purpose. A. The City Council intends by this chapter to protect mobilehome owners and mobile home park residents in mobilehome parks from excessive and unconscionable rent increases. B. The City Council intends by this chapter: 1. To prevent existing mobilehome owners, who are rendered largely incapable of moving their mobilehomes without suffering a substantial loss in their value, from loss of their investment and the resale value of their mobilehomes due to the fact that a new mobilehome resident is being charged excessive rents; 2. To protect and promote the availability of mobilehomes as a more affordable housing choice; and 3. To avoid immediate displacement caused by an eviction or unsustainable rent increases during the COVID-19 health crisis. 9.64.020 Definitions. Words used in this chapter shall have the meaning described to them in this section: A. “Mobilehome” is a structure designed for human habitation and for being moved on a street or highway under permit pursuant to Section 35790 of the California Vehicle Code. As used in this chapter, “mobilehome” has the same meaning as California Civil Code Section 798.3. B. “Manufactured home” is a unit built post June 15, 1976, t hat meets U.S. Department of Housing and Urban Development (HUD) specifications. The term “manufactured home” for the purpose of this chapter only shall be synonymous with the term “mobilehome.” Page 233 of 623 4 C. “Mobilehome space” means a portion of a mobilehome park designated or used for the occupancy of one mobilehome. D. “Mobilehome park” or “park” is an area of land where two or more mobilehomes or mobilehome spaces are rented, or held out for rent, to accommodate mobilehomes used for human habitation. E. “Mobilehome park owner” or “owner” means and includes the owner, lessor, operator, or manager of a mobilehome park. F. “Mobilehome owner” means a person who owns a mobilehome which is legally located in a mobilehome space within a mobilehome park in the City of National City. G. “Mobilehome resident” or “resident” means a person who occupies a mobilehome in a mobilehome park in the City of National City as a primary residence by virtue of having a rental agreement. “Mobilehome resident” or “resident” is inclusive of a mobilehome owner. H. “Rent” means the consideration, including any bonus, benefit or gratuity, demanded or received in connection with the use and occupancy of a mobilehome or mobilehome space in a mobilehome park, including services, or in connection with the transfer of a lease for a mobilehome space or the subleasing of a mobilehome space. “Rent” shall not include amounts paid by residents for such separately metered utilities or services, as provided in California Civil Code Section 798.41, or any separate charge for those fees, assessments or costs which may be charged to mobilehome residents pursuant to the California Civil Code. I. “Consumer Price Index” or “CPI” means the All Urban Consumers/All Items component of the San Diego Metropolitan Area U (broader base) Consumer Price Index prepared by the Bureau of Labor Statistics. If the United States Bureau of Labor Statistics does not publish the San Diego Metropolitan Area U (broader base) Consumer Price Index or there is no alternative CPI All Urban Consumers/All Items index published by the Bureau of Labor Statistics that applies to National City, CPI will be be defined as the California Consumer Price Index for All Urban Consumers for All Items as published by the California Department of Industrial Relations. J. “Percentage Change in CPI” means the percentage change in the CPI as defined above and computed as follows: For rent increases that take effect before August 1 of any calendar year, the following shall apply: (1) The percentage change shall be the percentage change in the amount published for April of the immediately preceding calendar year and April of the year before that. (2) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of the immediately preceding calendar year and March of the year before that. Page 234 of 623 5 For rent increases that take effect on or after August 1 of any calendar year, the following shall apply: (1) The percentage change shall be the percentage change in the amount published for April of that calendar year and April of the immediately preceding calendar year. (2) If there is not an amount published in April for the applicable geographic area, the percentage change shall be the percentage change in the amount published for March of that calendar year and March of the immediately preceding calendar year The percentage change shall be rounded to the nearest one-tenth of 1 percent. 9.64.030 General applicability and exemptions. This chapter shall apply to all mobilehome parks, mobilehome park owners, mobilehome residents and mobilehomes in mobilehome parks within the City of National City, unless otherwise exempted by state law or the provisions of this chapter. This chapter shall not apply to leases for a term exceeding one year which are exempted by California Civil Code Section 798.17, so long as such leases contain all the required provisions for exemption, including a statement in the first sentence of the first paragraph, in at least 12 point type or capital letters, giving notice to the mobilehome resident that, by entering into the lease, the rent control provisions of this ordinance will be automatically superseded by the lease provisions regarding rent and rent increases. 9.64.040 Effective Date. The effective date of this ordinance is January 1, 2023 and any rent increases occurring on or after the effective date shall be in conformance with this ordinance. 9.64.050 Annual Permissive Rent Increases and Notices of CPI. A. Subject to subdivision (B), of this section management shall not over the course of any 12 month period, increase the gross rental rate for a tenancy in a mobile home park more than 3 percent plus the percentage change in the Consumer Price Index, or 5 percent, whichever is lower, of the lowest gross rental rate charged for tenancy at any time during the 12 mont hs prior to the effective date of the increase. B. If the same homeowner maintains a tenancy over any 12 month period, the gross rental rate for the tenancy shall not be increased in more than two increments over that 12-month period, subject to the other restrictions of this chapter governing gross rental rate increase. Page 235 of 623 6 C. For a new tenancy in which no homeowner from the prior tenancy remains in lawful possession of the mobile home space, management may establish the initial rental rate not subject to subdivision (A). Subdivision (A) shall be applicable to subsequent increases after that initial rental rate has been established. D. Management shall provide notice of any increase in the rental rate, pursuant to subdivision (a), to each homeowner in accordance with Civil Code Section 798.30. 9.64.060 Mobilehome residents right of refusal. A mobilehome resident may refuse to pay any increase in rent which is in violation of the chapter. Such refusal to pay shall be a defense in any action brought to recover possession of a mobile home space or to collect a rent increase. 9.64.070 Retaliatory eviction In any action brought to recover possession of a mobile home or mobile home space, the court shall consider as grounds for denial any violation of this chapter. Further the determination that the action was brought in retaliation for the exercise of any rights conferred by this chapter shall be grounds for denial. 9.64.080 Civil remedies. A. Civil Action. Any person who demands, accepts, receives or retains any payment of rent in excess of the maximum rent allowable by this chapter shall be liable in a civil action, including unlawful detainer, to the person upon whom the demand was made or from whom the rent was accepted in an amount of up to triple the amount of such improperly collected rent, and for such reasonable attorney’s fees and costs as may be determined by the court. 9.64.090 Criminal remedies Any person committing a violation of this chapter shall be guilty of a misdemeanor. Any person convicted of a misdemeanor under the provision of this chapter shall be punished by a fine of not more than $1,000 or by imprisonment in the county jail for a period of six months in jail or by both such fine or imprisonment. The following nonexclusive acts, without limitation due to enumeration, shall constitute a criminal violation of this chapter, including the owner of a park if done by the owner’s agent with the knowledge and consent of the owner: A. Knowingly demanding, accepting or retaining any rent in excess of the amount fixed by this chapter. Page 236 of 623 7 B. Knowingly commencing, or threatening to commence, or maintain an eviction or unlawful detainer proceeding against a resident to for the failure to pay a rent in excess of the amount fixed pursuant to this chapter. 9.64.100 Severability. It is the intent of the City Council of the City of National City to supplement applicable state and federal law and not to duplicate or contradict such law, and this Ordinance shall be construed consistently with that intention. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of National City hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable. 9.64.110 Sunset Provision. This Chapter shall remain in effect for only two years after its effective date and as of December 31, 2024 is repealed. SECTION 3. Environmental Determination. The City Council finds that the adoption and implementation of this ordinance is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the ordinance may have a significant effect on the environment, because this ordinance preserves the status quo and the ability of tenants/mobilehome owners to occupy their rental spaces. SECTION 4. This Ordinance shall take effect and be enforced thirty (30) days following its adoption by the City Council. SECTION 5. The City Clerk shall certify to the adoption of this Ordinance and shall publish in accordance with the law. INTRODUCED at a regular meeting of the City Council of the City of National City, held on this __ day of _______, 2022 PASSED and ADOPTED this ______ day of ______________, 2022. Page 237 of 623 8 _____________________________ Alejandra Sotelo-Solis, Mayor ATTEST: ____________________________ Luz Molina, City Clerk APPROVED AS TO FORM: ____________________________ Barry J. Schultz, Interim City Attorney Page 238 of 623 AGENDA REPORT Department: City Clerk's Office Prepared by: Angelita Palma, Housing Programs Manager Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Permanent Local Housing Allocation (PLHA) Year Two Funding RECOMMENDATION: Adopt a Resolution Entitled, "Resolution of the City Council of the City of National City, California, for Permanent Local Housing Allocation (PLHA) Year Two funding to (1) establish Year Two PLHA budget appropriations and the corresponding revenue budget in the amount of $400,000.06; (2) reallocate $115,989.84 of unused funds from Year One PLHA funding; (3) approve a Spending Plan for said PLHA funding in Fiscal Year 2023; and (4) authorize the City Manager to execute agreements with the Alpha Project for a not-to-exceed amount of $60,000 and the McAlister Institute for a not-to-exceed amount of $440,710.90. for homeless outreach, case management, emergency housing, and other housing services for people experiencing homelessness and those at-risk of becoming homeless.” BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Resolution 2020-164: Ratification of the PLHA application and appropriation of Year One funding. Resolution: 2021-90: Five-Year Plan Amendment and Year One appropriations approved. Resolution 2021-162: Reapproved the Five-Year Plan Amendment per HCD guidelines. EXPLANATION: Background The Permanent Local Housing Allocation (PLHA) Program funding is made possible through California Senate Bill (SB) 2 of 2017. PLHA is a non-competitive entitlement fund to support local affordable housing and homeless services initiatives. SB2 intended to provide a permanent, ongoing source of funding to local governments for housing-related projects and programs that address the unmet housing and homelessness needs of their local communities. PLHA Program revenue is generated through recording fees on real estate transactions on an annual basis. On July 27, 2020, City staff prepared and submitted a PLHA application California Department of Housing and Community Development (HCD), which included a Five-Year Plan for funding. The City is eligible to receive a projected amount of $2,359,146 according to the PLHA formula allocation over a five-year period. On August 18, 2020, City Council adopted Resolution 2020-164 to ratify the PLHA application and appropriate Year One and Two funding to assist households currently experiencing homelessness, or at-risk of becoming homeless who were impacted by COVID-19 with emergency rental assistance. PLHA Years Three, Four, and Five will assist new development or rehabilitation housing projects that target Extremely low-, Very low-, Low-or Moderate Income households, including necessary operating subsidies; and provide for the preservation of affordable housing, including the development of ADU's for a growing workforce. Page 239 of 623 In January 2021, San Diego County received state and federal government to assist County residents in unincorporated areas and 16 cities within the region, including National City that COVID-19 economically impacted with housing and utility payments in the errears. The County issued over $228.1 million in utility and rent payments, over $4.2 million in rental assistance for small landlords with five or fewer units, and over $1.2 million for security deposit and rental assistance. On June 15, 2021, Resolution 2021-90 approved the amended PLHA Spending Plan, which removed using the PLHA funds for emergency rental assistance since the County was providing that service. The Amended Spending Plan approved Year One and Two PLHA funds for housing opportunities for people experiencing or at-risk of homelessness by providing outreach, supportive/case management services, and rental assistance to allow people to obtain and retain housing. Resolution 2021-90 approved Spending Plan allowed for $19,659 in local City grant administration and allowed the City to maintain current levels of outreach provided by the Alpha Project that received $60,000 of PLHA funds for outreach, case management, and housing navigation services. The PLHA funds were leveraged by the Regional Task Force on Homelessness (HHAP) grant committed to the City of National City and Chula Vista in fiscal year (FY) 2022. The Resolution also awarded the McAlister Institute $313,532 of PLHA funds for hotel/motel vouchers, bus passes/transportation, street outreach, supportive and case management services. The McAlister Institute subcontracted Community Through Hope to provide clients with basic needs. On November 2, 2021, per Resolution 2021-162 the City Council reapproved the Amendment in a resolution using a template that was satisfactory to HCD's legal counsel. Year Two PLHA Grant On November 15, 2022, staff recommends the City Council: 1) Establish Year Two PLHA budget appropriations and the corresponding revenue budget in the amount of $400,000.06; 2) Reallocate $115,989.84 of unused funds from Year One PLHA funding; 3) Approve a Spending Plan for said PLHA funding in Fiscal Year 2023; and 4) Authorize the City Manager to execute agreements with the Alpha Project for a not-to- exceed amount of $60,000 and the McAlister Institute for a not-to-exceed amount of $440,710.84 for homeless outreach, case management, emergency housing, rental housing, and other housing services for people experiencing homelessness and those at- risk of becoming homeless. Proposed Spending Plan There is no match required by the City for the PLHA grant. The PLHA grant activity allocation is based on funding plan approved by HCD and Resolution 2021-90. Staff proposes the Spending Plan be used by executing agreements with the Alpha Project and McAlister Institute and appropriating $15,279.00 for allowable City grant administration. The City Manager will execute the agreements, make budget adjustments as necessary to reflect funding the allocation in the approved PLHA Plan, and execute a one-year extension of the agreement to complete the scope under the agreement. Activity Funding Amount Allowable Local City Grant Administration $15,279.06 Rental Assistance (Term of 6 months) $190,000.00 Supportive/Case Management Services $289,261.24 Street Outreach $21,449.60 Total $515,989.90 Page 240 of 623 Agreement with Alpha Project The proposed Spending Plan will allow the City to maintain current levels of service provided by Alpha Project. Staff recommends entering into an agreement with Alpha Project with a not-to-exceed amount of $60,000.00. The PLHA grant funds will be leveraged by the Regional Task Force on the Homelessness (RTFH) Homeless Housing, Assistance, and Prevention Program (HHAP) grant in the amount of $179,000.00 committed to the City of National City and Chula Vista in FY 2023. Services shall meet the requirements of the PLHA Program and shall include, but are not limited to: outreach, case management, and housing navigation. Agreement with McAlister Institute The proposed Spending Plan will also allow the City to maintain current levels of service provided by the McAlister Institute. Staff recommends entering into an agreement with the McAlister Institute for a not-to-exceed amount of $440,710.90. Services shall meet the requirements of the PLHA Program and shall include, but are not limited to homeless outreach, case management, housing services, emergency hotel/motel vouchers, and rental assistance for a term of 6 months. McAlister Institute will subcontract with SBCS admister rental assistance. SBCS has experience administering the City’s HUD HOME tenant based rental assistance program, has adequate staff capacity, and ability to deliver services to clients experiencing or at- risk of homelessness in a professional and timely manner, and SBCS is willing to perform such services. Agreement Totals Proposed Funding Amount Leveraged Funds Alpha Project HHAP Grant* $60,000.00 $179,000.00 McAlister Institute Subcontract with SBCS** $440,710.90 City Program Administration $15,279.00 Total $515,989.90 $179,000.00 *HHAP Grant is committed to the City of National City and Chula Vista. The City of Chula Vista awarded an additional $110,000 to the Alpha Project for FY 2023. **SBCS will leverage HUD HOME Program funds to assist clients who receive rental assistance for a term of six months. HCD Approved Plan for PLHA Years 3-5 The City is eligible to receive a projected amount of $2,359,146.00 in PLHA funds according to the HCD formula allocation over a five-year period. However, the PLHA projected funding amount was created by HCD prior to COVID-19 and may be less than expected. The Five-Year Plan for PLHA funds were consistent with the goals of the City's Housing Element of the General Plan and the City’s Strategic Plan. The City has been awarded two funding cycles, PLHA Year One and Two funds are to assist households experiencing or at-risk of homelessness. In PLHA funding Years Three, Four, and Five, the City will use its PLHA Funds for the predevelopment, development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, including accessory dwelling units (ADUs), which meet the needs of a growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days. Page 241 of 623 FINANCIAL STATEMENT: The Year Two PLHA funds are to be appropriated to revenue account 501-45477-3463 in the amount of $400,000.06. Reallocated funds from Year One in the amount of $115,989.84 and Year Two PLHA allocation should be appropriated to expenditure account 501-419-477-* in the amount of $515,989.90. There is no match required from the City’s General Fund. RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Housing and Community Development To enhance the City’s role in reducing homelessness. ENVIRONMENTAL REVIEW: This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBIT: Exhibit A - Resolution Page 242 of 623 RESOLUTION NO. 2022 - Resolution of the City Council of City of National City, California, for Permanent Local Housing Allocation (PLHA) Year Two Funding to (1) Establish Year Two PLHA Budget Appropriations and the Corresponding Revenue Budget in the Amount of $400,000.06; (2) Reallocate $115,989.84 of Unused Funds from Year One PLHA Funding; (3) Approve a Spending Plan for said PLHA funding in Fiscal Year 2023; and (4) authorize the City Manager to Execute Agreements with the Alpha Project for a Not-to-Exceed Amount of $60,000 and the McAlister Institute for a Not-to-Exceed Amount of $440,710.90, for Homeless Outreach, Case Management, Emergency Housing, and Other Housing Services for People Experiencing Homelessness and Those at-Risk of Becoming Homeless. WHEREAS, the State of California Department of Housing and Community Development (“HCD”) is authorized to provide up to $304 million under the SB 2 Permanent Local Housing Allocation Program Formula Component from the Building Homes and Jobs Trust Fund for assistance to Cities and Counties as described in Health and Safety Code section 50470 et seq. Chapter 364, Statutes of 2017 (“SB 2”); and WHEREAS, HCD issued a Notice of Funding Availability (“NOFA”) dated May 3, 2021, under the Permanent Local Housing Allocation (“PLHA”) Program; and WHEREAS, the City of National City (“City”) applied for program funds under the PLHA formula allocation to administer one or more eligible activities; and WHEREAS, HCD approved City funding allocations for the PLHA Program, subject to the terms and conditions of the Guidelines, NOFA, Program requirements, the Standard Agreement, and other contracts between the HCD and PLHA grant recipients; and WHEREAS, on August 18, 2020, Resolution 2020-164 approved the PLHA Plan, which proposed that 100% of its PLHA funds would go towards housing opportunities for those earning 60% or less of the San Diego County Area Median Income (AMI) through three types of activities in order of priority as follows: (1) Emergency Rental Assistance Program that will help families with low income in the City of National City who experience financial hardship due to an emergency”; (2) assist new development or rehabilitation housing projects that target Extremely low-, Very low-, Low-or Moderate Income households including necessary operating subsidies; (3) provide for the preservation of affordable housing including the development of ADU's for a growing workforce; and WHEREAS, on June 15, 2021, Resolution 2021-90 approved the First Amendment for Year One and Year Two PLHA funding to be used on housing opportunities for those earning 60% or below of the San Diego County Area Median Income (AMI), including basic and emergency services for the homeless, including outreach, case management, homeless prevention, emergency housing, and rental assistance; and WHEREAS, Resolution 2021-90 approved Years Three, Four, and Five to (1) assist new development or rehabilitation housing projects that target Extremely low-, Very low-, Low-or Moderate Income households including necessary operating subsidies; and (2) provide for the preservation of affordable housing including the development of ADU's for a growing workforce at or below 60% AMI; and Page 243 of 623 2 WHEREAS, on November 2, 2021, per Resolution 2021-162 the City Council reapproved the First Amendment in the form of a Resolution using a template that was satisfactory to HCD's legal counsel; and WHEREAS, HCD has notified the City of its PLHA Year Two funding for which $400,000.06 will be appropriated to FY 2022-2023 for housing activities approved in Resolution 2021-90; and WHEREAS, City staff has also identified and verified PLHA funds in the amount of $115,989.84 to supplement further the funding of housing activities approved in Resolution 2021- 90; and WHEREAS, staff proposes a PLHA Spending Plan of the available PLHA funds for City grant administration, rental assistance, supportive and case management services, and street outreach to those people experiencing and at-risk of homelessness; and WHEREAS, staff proposes to enter into an agreement with Alpha Project for a not-to- exceed amount of $60,000.00 for services including, but not limited to outreach, case management, and housing navigation; and WHEREAS, staff proposes to enter into an agreement with the McAlister Institute for a not-to-exceed amount of $440,710.84 for servicing including, but not limited to homeless outreach, case management, housing services, emergency hotel/motel vouchers, and rental assistance for a term of 6 months. WHEREAS, staff proposes $15,279.00 for City PLHA Program Administration; and WHEREAS, staff proposes that the City Manager will be authorized to execute the agreements with Alpha Project and McAlister Institute, approve budget adjustments as necessary to reflect funding the allocation in the approved PLHA Plan, and extend the agreements as necessary up to one year to complete the scope of work under the agreements. NOW, THEREFORE, THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Section 1: City Council authorizes Year Two PLHA funds in the amount of $400,000 for planned activities stated in Resolution 2021-90. Section 2: City Council authorizes reallocating $115,989.84.00 from Year One PLHA funding to further supplement funding of housing activities approved in Resolution 2021-90. Section 3: City Council authorizes entering into an agreement with the Alpha Project for a not-to-exceed amount of $60,000.00 for services including, but not limited to outreach, case management, and housing navigation, the form of which shall be subject to review and approval by the City Attorney. Page 244 of 623 3 Section 4: City Council authorizes entering into an agreement with the McAlister Institute for a not-to-exceed amount of $440,710.84 for services including, but not limited to homeless outreach, case management, housing services, emergency hotel/motel vouchers, and rental assistance for a term of 6 months, the form of which shall be subject to review and approval by the City Attorney. Section 5: City Council authorizes the allocation of $15,279.00 for City PLHA Program Administration; and Section 6: City Council authorizes the City Manager to execute the agreements, approve budget adjustments as necessary to reflect funding the allocation in the approved PLHA Plan, and extend agreements as necessary up to one year to complete the scope under the agreements. Section 7: The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original Resolution. PASSED and ADOPTED this 6th day of December 2022. _____________________________ Alejandra Sotelo-Solis, Mayor ATTEST: _____________________________ Luz Molina, City Clerk APPROVED AS TO FORM: _____________________________ Barry J. Schultz Interim City Attorney Page 245 of 623 AGENDA REPORT Department: City Clerk's Office Prepared by: Tirza Gonzales, Management Analyst II Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Appropriation of Funds in the amount of $999,996 for the Clean Mobility Options (CMO) Voucher Program for the Free Ride Around National City (FRANC). RECOMMENDATION: Adopt a Resolution Entitled, "Resolution of the City Council of the City of National City, California, authorizing the Appropriation of Funds in the amount of $999,996 for the Clean Mobility Options (CMO) Voucher Programs for the Free Ride around National City (FRAN).” BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: The Clean Mobility Options Voucher Pilot (CMO) Program is an initiative of the California Air Resources Board funded by the California Climate Investment Program. Its primary goal is to provide funding for zero-emission shared mobility options to underserved communities in California. The City of National City submitted a grant request late 2021 for a Mobility Hub and a Neighborhood Electric Vehicle (NEV) Program at the 8th Street Trolley Station and were notified in spring 2022 of the award along with 19 other projects in California. The program is called FRANC - Free Ride Around National City - and is for the construction of solar panels on shade structures as well as the purchase of NEV shuttle vehicles and a cage for overnight storage and recharging of the NEVs. The shuttle system is intended to provide first and last mile connections for the trolley station as well as connections to other origins and destinations in Downtown and Westside National City through a combination of fixed routes (along 8th Street and Roosevelt on a new multi-use path being covered by other grants) as well on demand services using streets that are under 35mph posted speeds where the vehicle is considered to be street legal. The system is expected to operate on an on-call design with fixed routes (yet to be determined) throughout the day. City Council adopted Resolution 2021-104 on August 3, 2021 accepting the grant for the FRANC program for a maximum of $999,996 to establish and operate for the first 3 years with commitments from the City to operate the system at their own expense for year 4 and 5. The amount required to run the program for years 4 and 5 is estimated to be $219,000. This cost is projected to be recovered through a variety of methods including revenue from advertisements, micromobility recharging, housing development partnerships (parking fees), fairbox return on NEV, etc. Service Area has been preliminarily defined to include the full Waterfront to Harbor and Tidelands, 4 gates to Naval Base San Diego, and to the City boundary to the North, I-805 on the East, and Page 246 of 623 Sweetwater River on the South. Due to limitations on funding, manpower requirements and battery life, the full City area west of I-805 cannot be included. The Service Area will follow the 805 boundary south to 16th Street, then will go West until Highland Avenue and then continue over to SR 54. The Service Area Boundary is 2.8 Square Miles or 1,800 Acres with a 12.5 mile perimeter The current effort is on verifying the service area, staffing requirements, equipment, construction items, and all budget costs. The state is willing to accept some increases in cost in order to implement this program, the only current grant from CMO that is using and producing clean energy and using an NEV. Construction costs, material costs, labor, technology, and insurance have all gone up dramatically since the grant application was filled out in 2020. The project is past many of the delays caused by insurance requirements, agreements with Circuit as the project partner, sizing the system to meet the budget and the service area, and the analysis of alternative products and technologies. The program is now expected to be available to the public in the fall 2023. Next steps include the development and implementation of community surveys, the finalization of a business plan, marketing plan, branding, and operational plan required by the state. The surveys are intended to be done in November and December and the planning and design components of the project by the end of the year Staff recommends the appropriation of funds in the amount of $999,996 for the Clean Mobility Options (CMO) Voucher Program for the Free Ride Around National City (FRANC). FINANCIAL STATEMENT: Revenue Account No. 296-06613-3463 - $999,996 (Free Ride Around National City) Expenditure Account No. 001-409-500-598-6613 - $999,996 (Free Ride Around National City) RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Transportation Choices and Infrastructure ENVIRONMENTAL REVIEW: This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBITS: D Exhibit A - Resolution Page 247 of 623 RESOLUTION NO. 2022 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, AUTHORIZING THE APPROPRIATION OF FUNDS IN THE AMOUNT OF $999,996 FOR THE CLEAN MOIBILITY OPTIONS (CMO) VOUCHER PROGRAM FOR THE FREE RIDE AROUND NATIONAL CITY (FRANC) WHEREAS, The Clean Mobility Options Voucher Pilot Program is an initiative of the California Air Resources Board funded by the California Climate Investment Program. Its primary goal is to provide funding for zero-emission shared mobility options to underserved communities in California. The City of National City submitted a grant request late last year for a Mobility Hub and program at the 8th Street Trolley Station and were notified this spring of the intent to award along with 19 other projects in California; and WHEREAS, The Free Ride Around National City (FRANC) program is for the construction of solar panels on shade structures as well as the purchase of NEV shuttle vehicles and a cage for overnight storage and recharging of the NEVs. The shuttle system is intended to provide first and last mile connections for the trolley station as well as connections to other origins and destinations in Downtown and Westside National City. The system is expected to operate on an on-call design with fixed routes (yet to be determined) throughout the day; and WHEREAS, on August 3, 2021, City Council adopted Resolution 2021-104 authorizing the participation in the Clean Mobility Options Voucher Pilot Program from the California Air Resources Board for the Free Ride Around National City (FRANC) Neighborhood Electric Vehicle (NEV) System and authorizing the City Manager to execute the approval of CMO Voucher Funds; and WHEREAS, Staff recommends the appropriation of funds in the amount of $999,996 for the Clean Mobility Options (CMO) Voucher Program for the Free Ride Around National City (FRANC). 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 authorizes the appropriation of funds in the amount of $999,996 for the Clean Mobility Options (CMO) Voucher Program for the Free Ride Around National City (FRANC). Section 2: 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 6th day of December, 2022. Alejandra Sotelo-Solis, Mayor ATTEST: Luz Molina, City Clerk APPROVED AS TO FORM: Barry J. Schultz, Interim City Attorney Page 248 of 623 AGENDA REPORT Department: Community Development Prepared by: Armando Vergara, Director of Community Development Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Amendment of City Council Policy No. 802, “City Support for Special Events, Activities, Programs and Services,” modifying events to the Sponsored and Co-Sponsored List. RECOMMENDATION: Adopt the Resolution Entitled, “Resolution of the City Council of the City of National City, California, Authorizing the Amendment of City Council Policy No. 802, “City Support for Special Events, Activities, Programs and Services”. BOARD/COMMISSION/COMMITTEE PRIOR ACTION: City Council Policy Committee 802 approves the recommendation for amendments to policy No. 802. EXPLANATION: The City Council is concerned with the increasing cost of City support of special events, examples of which are concerts, festivals, parades and sporting events, which take place at City parks and facilities or in City streets and rights-of-way. The Council notes that City support is not specially budgeted, however limited Sponsored and Co-Sponsored Events, Activities, Programs and Services are listed as yearly approved events within this policy. The Council also recognizes that special events are a major part of that special lifestyle that defines National City’s history and makes our City unique. To address these concerns, Policy 802 (formerly 804) was created and adopted on October 3, 2006, which provides guidelines to deal with the cost of City support and that are subject to the City’s economic conditions and resources. The 802 Council Policy Committee consist of Mayor Sotelo-Solis, Council Member Rios, Library & Community Services Director Ryan, Director of Community Development Vergara, Neighborhood Services Manager Martinez, Community Services Manager McGhee and Public Works Park Superintendent Uribe. For the upcoming 2023 year, the 802 City Council Policy Committee recommends no changes to the policy, however does propose adding three new events to the City’s Sponsored Event List – Attachment “B” and makes note of an updated sponsorship change to the Co-Sponsored List – Attachment “A”: The following recommendations and updates are to include; 1) Fiestas Patrias (September – Community Services) Fiestas Patrias commemorates the independence of Latin American countries, many of which celebrate their national independence day in the month of September. Traditionally held in the middle of September, it highlights Mexican Independence Day and also the beginning of National Hispanic Heritage Month, with festivities that showcase Hispanic culture. This event will include mariachi music, folklorico dance, arts and crafts, vendors and food. Page 249 of 623 2) National City Birthday Celebration (September – Community Services) National City was founded on September 17, 1887. National City’s Birthday, on September 17, is an event that can be showcased either as part of another event or as a stand-alone event, depending on the landmark year. 3) National City Cruising Event(s) (City Manager’s Office – TBD) On April 5, 2022, City Council approved a Temporary Use Permit for a series of events called, “Cruise Nights” hosted by the United Lowrider Coalition for a pilot period of six months. The first event had significant turnout that affected traffic and access on streets and freeways. The 2nd event did not occur due to unresolved issues. The Low Rider Association holds an annual car show in Kimball Park with an associated cruising event following the car show. The association submits a TUP annually without sponsorship and complies with all City Policies and Procedures. The cruising portion has trailed the car show with all members following the rules of the road and we have had no associated concerns from our residents or businesses. The City Council Policy 802 subcommittee has reviewed both events and recommends that a well-organized cruising series could be implemented with proper traffic and safety considerations. The goal is to establish an organized event(s) that includes a defined traffic plan and a safe program environment for residents, businesses, and participants. At this time, City staff have not proposed any dates or program details. If approved as a sponsored event, staff can bring forward details through the budgeting process. A yearly review of this event(s) by the 802 subcommittee will take consideration of budgetary and community impacts. 4) Spirit of the Holidays (Co-Sponsored Attachment “A” – December) Since the original organization “N.C. College Campus Lions” is no longer in operation, the “National City Fire Local FFA 2744” has now become the new lead organizer for this yearly event. FINANCIAL STATEMENT: N/A RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: With the success of an organized and permitted car cruise event in 2022, the committee is recommending a similar City Sponsored event that will continue to build on this community’s history, passion and culture. ENVIRONMENTAL REVIEW: This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBITS: Exhibit A – City Council Policy No. 802 Exhibit B – City Council Policy No. 802 Draft - Redline Exhibit C – Resolution Page 250 of 623 CITY COUNCIL POLICY CITY OF NATIONAL CITY BACKGROUND: The Council recognizes that special events are a lifestyle that defines National City's history and makes our City unique . However, City Council is also concerned with the increasing cost of City support of special events, examples of which are concerts, festivals, parades and sporting events which take place at City parks and facilities or in City streets and rights-of-way. The Council notes that City support of special events, be it police traffic service, fire standby service or other support, is not specifically budgeted and is provided through reductions in the level of service for budgeted programs . DEFINITIONS: 1. "SPECIAL EVENT" as defined in Municipal Code Section 15.60.005 means any organized activity conducted for a common or collective purpose, use or benefit which involves the utilization of, or has an impact upon, public property or facilities and the need for providing municipal and public safety services in response to the event. Examples of Special Events include, but are not limited to: a. Parades b. Public concerts and other community cultural events c. Demonstrations d. Circuses e. Fairs and festivals f. Community or neighborhood block parties and street dances g. Mass participation sports (marathons, bicycles races and tours) h. Film making activities 1. Public speaker events 2. "CITY SUPPORT" means any City services required to maintain minimal interference and inconvenience to the general public resulting from a Special Event. City Support includes, but is not limited to: a. Special Event permit processing b. Police services c. Sanitation and cleanup d. Maintaining access for emergency vehicles and provision of medical care e. Street closures f. Use of City Stage, PA equipment and/or Information Trailer Page 251 of 623 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: January 19, 2021 City Support does not include internal security, crowd control and other services considered the responsibility of the Special Event Sponsor. 3. "NON PROFIT" means a non-profit tax exempt organization (501(c)(3)) that is exempted from payment of income taxes by federal or state law and which has been in existence for a minimum of six (6) months preceding the date of application for a special event. 4. "PUBLIC FACILITY" means any property, building, or public access (street, park, theater, etc.) that lies within the City and which is owned or operated by the City for public benefit or usage. 5. "EVENT ORGANIZER" means any person, group, or corporation assuming responsibility for planning, promoting, and carrying out a Special Event. 6. "CITY MANAGER" means the City Manager or designee. 7. "CITY CO-SPONSORED EVENT" is defined as an annual event that occurs within the boundaries of National City. The co -sponsoring agency must be a National City non-profit or branch thereof and the event must benefit National City and its residents. Applications must be submitted as a special event application to the Neighborhood Services Department, deadlines are noted annually. The current City co -sponsorship events list (Attachment "A") are considered grandfathered and will not need to apply annually for approval. 8. "CITY SPONSORED EVENT" is defined as an annual community-wide event that is planned and managed by one or more City departments. The current City sponsored events list (Attachment "B") are considered grandfathered and will not need to apply annually for approval. These events will not require a secondary City Council approval through the TUP or Special Event process. City Staff will process event applications and City Council will be updated of these events annually and or on a quarterly basis. PURPOSE: It is the purpose of this policy to provide guidelines for the support of special events, consistent with the least possible disruption to normal City services. POLICY: A. Co-Sponsored Events It is the policy of the City Council that: Page 252 of 623 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: January 19, 2021 1. To the extent that economic conditions and the City's resources allow, the City manager upon City Council notification, may provide reasonable City support of up to $1,200 per event day to non -profit special events that benefit National City residents, are held wholly within City limits, and which are listed in Attachment "A" and are considered to be City co-sponsored annual events. 2. Any new non-profit applicant (not on Attachment "A") requesting co -sponsorship must apply to be considered for the City co -sponsored event list which will be reviewed annually by the 802 policy committee. The 802 policy committee will recommend changes to the co-sponsored event list only when required on an annual basis (per Section 7 of Definitions - page 2). As a City co-sponsored event, organizations shall prominently place the City's logo in all advertis ing materials promoting the event and provide space for the City to set up an information booth, per the City Council's discretion. 3. Any new Special Event or TUP applicant not currently on the approved co- sponsored list and requesting fee waivers, may only be considered to have fees waived up to the minimum level of $500 per event day . Attachments "A" and "B" are the current list of approved co -sponsored and sponsored events respectively. Any new events considering co-sponsorship must apply through the annual process. 4. Any Special Event or TUP application is prohibited from engaging in any political election activities, including but not limited to campaign activities, campaign/political information booths, messaging, banners, or support of any political candidate during any Co-Sponsored event in the City. 5. Any Co-Sponsored organization on the event list that had not held an event in three (3) years shall be withdrawn from the Co-Sponsored list for the following year (Attachment "A"). B. Sponsored Events It is the policy of the City Council that to the extent economic conditions and the City's resource allow, National City will sponsor and provide community -wide annual events which are listed in Attachment "B". Event fees that are incurr ed by City departments will be charged against an account designed for that purpose. The City Manager shall notify the City Council of upcoming events on a quarterly basis. Page 253 of 623 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: January 19, 2021 C. Other Events, Activities, Programs and Services It is the policy of the City Council that: 1. To the extent that economic conditions and the City's resources allow, the City Manager may provide City support for a special event conducted by a non -profit organization. City support would be limited to a waiver of permit processing fees and the event must benefit National City residents. Examples include an event where there is insufficient time for Council approval, such as in the event of a catastrophe or an emergency situation. The City Manager shall notify the City Council of any such support on a monthly basis. 2. The City Manager shall charge City costs for any special event of a commercial nature; also, the City Manager shall require organizers of commercial special events to pay the City a negotiated percentage of gross revenues or a flat fee. Such revenues will be deposited into the City's General Fund. 3. Proceeds from a special event of a commercial nature that benefits a local non- profit organization, shall show proof of donation within 10 business days. Such proof shall be submitted to the City's Department of Finance (Revenue & Recovery). Failure to provide proof of donation will result in loss of any deposit remitted and may jeopardize future use of City facilities. 4. To the extent economic conditions and the City' s resources allow, funding support may be authorized in support of a program, service or activity, other than a special event, when found by the City Council to be of benefit to the community or the City. Requests must include a specific purpose for the funding (i.e., to pay, in whole or in part, for the purchase or rental of specific supplies or equipment). Page 254 of 623 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: January 19, 2021 D. Documentation of Expenses A report detailing allowable incurred expenses must be submitted to the Department of Finance, in a format prescribed by the Director of Finance, for a special event, program, service, or activity receiving funding support from the City. The report must be accompanied by documentation, including receipts for all purchases, if requested. This requirement shall not apply to programs, services, or activities for which the City is under written contractual agreement. Any such requirement shall be dictated by the terms of said agreement. Failure of an organization or individual to provide a proper report and documentation of allowable incurred expenses may result in denial of future funding support requests. E. El Toyon Park The use of El Toyon Park for special events is prohibited. F. Use of Mobile Stage The mobile stage shall be used only on City parklands, and/or other public property within the limits of National City. Any events outside this purview and requesting use of the City stage must apply through the special event process. The USER of the stage shall be responsible for any damage to the unit result ing from carelessness or misuse. Page 255 of 623 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: January 19, 2021 RELATED POLICY REFERENCES: City Council Policy# 704 - Limitation on City Approved Special Events within the City City Council Policy# 801 - Field and Facility Rules and Regulations Page 256 of 623 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: January 19, 2021 ATTACHMENT "A" NATIONAL CITY CO-SPONSORED EVENTS Event Title Organizer Timing National City International Mariachi Festival National City Chamber of Commerce March Granger Jr. High Cultural Fair Granger Jr. High Spring Job Fair N.C. Chamber of Commerce Spring July 4th Carnival National City Host Lions Club July Mabuhay Festival Mabuhay Festival June Las Palmas 5K and 1 Mile Walk Las Palmas Elementary School June Blood Drive American Red Cross June Auto Heritage Days N.C. Chamber of Commerce August Relay for Life American Cancer Society July Bayside Brew &Spirits Fest N.C. Chamber of Commerce September OneSight Vision Clinic N.C. Host Lions Club October Salute to Navy N.C. Chamber of Commerce October Maytime Band Review Maytime Band Association October Sweetwater High Homecoming Sweetwater High School Fall Community Concert Band Series (up to 4 concerts annually /per year) N.C. Community Concert Band Quarterly Spirit of the Holidays N.C. College Campus Lions December Christmas with Kids Christmas with Kids December Note: Co-sponsored events that reoccur on the same date, or weekend, each year will maintain "first rights" to their date if the special event permit application is received within jive months of the recurring event date. After the jive- month application deadline, other interested parties will be able to apply. Events scheduled on recurring weekends (such as the J st, 2"d, r3 d, 4'", or 5'" weekend of a month) will be defined by the first date of the event is open to the public. Page 257 of 623 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: January 19, 2021 ATTACHMENT "B" NATIONAL CITY SPONSORED EVENTS Event Title Organizer Timing Movies in the Park Community Services Summer NC Gets Active Community Services Quarterly Summer Concerts Community Services Summer Miss. National City Pageant Community Services July National Night Out Police, Community Services, FFA August 9/11 Remembrance Ceremony Fire September State of the City Mayor's Office Fall Family Tennis Day Community Services October Annual Volunteer Dinner Community Services Fall Dia de los Muertos Mayor's Office Oct/Nov Veteran' s Day City Manager's Office November Turkey Giveaway Mayor's Office November A Kimball Holiday Community Services December Community Service Day Community Services April Page 258 of 623 CITY COUNCIL POLICY CITY OF NATIONAL CITY BACKGROUND: The Council recognizes that special events are a lifestyle that defines National City's history and makes our City unique . However, City Council is also concerned with the increasing cost of City su pport of special events, examples of which are concerts, festivals, parades and sporting events which take place at City parks and facilities or in C ity streets and rights-of-way. The Council notes that City support of special events, be it police traffic service, fire standby service or other support , is not specifically budgeted and is provided through reductions in the level of service for budgeted programs . DEFINITIONS: 1. "SPECIAL EVENT" as defined in Municipal Code Section 15.60.005 means any organized activity conducted for a common or collective purpose, use or benefit which involves the utilization of, or has an impact upon, public property or facilities and the need for providing municipal and public safety services in response to the event. Examples of Special Events include, but are not limited to: a. Parades b. Public concerts and other community cultural events c. Demonstrations d. Circuses e. Fairs and festivals f. Community or neighborhood block parties and street dances g. Mass participation sports (marathons, bicycles races and tours) h. Film making activities i. Public speaker events 2. "CITY SUPPORT" means any City services required to maintain minimal interference and inconvenience to the general public resulting from a Special Event. City Support includes, but is not limited to: a. Special Event permit processing b. Police services c. Sanitation and cleanup d. Maintaining access for emergency vehicles and provision of medical care e. Street closures f. Use of City Stage, PA equipment and/or Information Trailer TITLE: City Support for Special Events , Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: December 6, 2022 Page 259 of 623 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: December 6, 2022 City Support does not include internal security, crowd control and other services considered the responsibility of the Special Event Sponsor. 3. "NON PROFIT" means a non-profit tax exempt organization (501(c)(3)) that is exempted from payment of income taxes by federal or state law and which has been in existence for a minimum of six (6) months preceding the date of application for a special event. 4. "PUBLIC FACILITY" means any property, building, or public access (street, park, theater, etc.) that lies within the City and which is owned or operated by the City for public benefit or usage. 5. "EVENT ORGANIZER" means any person, group, or corporation assuming responsibility for planning, promoting, and carrying out a Special Event. 6. "CITY MANAGER" means the City Manager or designee. 7. "CITY CO-SPONSORED EVENT" is defined as an annual event that occurs within the boundaries of National City. The co -sponsoring agency must be a National City non-profit or branch thereof and the event must benefit National City and its residents. Applications must be submitted as a special event application to the Neighborhood Services Department, deadlines are noted annually. The current City co -sponsorship events list (Attachment "A") are considered grandfathered and will not need to apply annually fo r approval. 8. "CITY SPONSORED EVENT" is defined as an annual community-wide event that is planned and managed by one or more City departments. The current City sponsored events list (Attachment "B") are considered grandfathered and will not need to apply annually for approval. These events will not require a secondary City Council approval through the TUP or Special Event process. City Staff will process event applications and City Council will be updated of these events annually and or on a quarterly basis. PURPOSE: It is the purpose of this policy to provide guidelines for the support of special events, consistent with the least possible disruption to normal City services. POLICY: A. Co-Sponsored Events It is the policy of the City Council that: Page 260 of 623 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: December 6, 2022 1. To the extent that economic conditions and the City's resources allow, the City manager upon City Council notification, may provide reasonable City support of up to $1,200 per event day to non -profit special events that benefit National City residents, are held wholly within City limits, and which are listed in Attachment "A" and are considered to be City co-sponsored annual events. 2. Any new non -profit applicant (not on Attachment "A") requesting co -sponsorship must apply to be considered for the City co -sponsored event list which will be reviewed annually by the 802 policy committee. The 802 policy committee will recommend changes to the co-sponsored event list only when required on an annual basis (per Section 7 of Definitions - page 2). As a City co-sponsored event, organizations shall prominently place the City's logo in all advertising materials promoting the event and provide space for the City to set up an information booth, per the City Council's discretion. 3. Any new Special Event or TUP applicant not curren tly on the approved co- sponsored list and requesting fee waivers, may only be considered to have fees waived up to the minimum level of $500 per event day . Attachments "A" and "B" are the current list of approved co -sponsored and sponsored events respectively. Any new events considering co-sponsorship must apply through the annual process. 4. Any Special Event or TUP application is prohibited from engaging in any political election activities, including but not limited to campaign activities, campaign/political information booths, messaging, banners, or support of any political candidate during any Co-Sponsored event in the City. 5. Any Co-Sponsored organization on the event list that had not held an event in three (3) years shall be withdrawn from the Co-Sponsored list for the following year (Attachment "A"). B. Sponsored Events It is the policy of the City Council that to the extent economic conditions and the City's resource allow, National City will sponsor and provide community -wide annual events which are listed in Attachment "B". Event fees that are incurred by City departments will be charged against an account designed for that purpose. The City Manager shall notify the City Council of upcoming events on a quarterly basis. Page 261 of 623 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: December 6, 2022 C. Other Events, Activities, Programs and Services It is the policy of the City Council that: 1. To the extent that economic conditions and the City's resources allow, the City Manager may provide City support for a special event conducted by a non -profit organization. City support would be limited to a waiver of permit processing fees and the event must benefit National City residents. Examples include an event where there is insufficient time for Council approval, such as in the event of a catastrophe or an emergency situation. The City Manager shall notify the City Council of any such support on a monthly basis. 2. The City Manager shall charge City costs for any special event of a commercial nature; also, the City Manager shall require organizers of commercial special events to pay the City a negotiated percentage of gross revenues or a flat fee. Such revenues will be deposited into the City's General Fund. 3. Proceeds from a special event of a commercial na ture that benefits a local non-profit organization, shall show proof of donation with in 10 business days. Such proof shall be submitted to the City's Department of Finance (Revenue & Recovery). Failure to provide proof of donation will result in loss of any deposit remitted and may jeopardize future use of City facilities. 4. To the extent economic conditions and the City’s resources allow, funding support may be authorized in support of a program, service or activity, other than a special event, when found by the City Council to be of benefit to the community or the City. Requests must include a specific purpose for the funding (i.e., to pay, in whole or in part, for the purchase or rental of specific supplies or equipment). Page 262 of 623 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: December 6, 2022 D. Documentation of Expenses A report detailing allowable incurred expenses must be submitted to the Department of Finance, in a format prescribed by the Director of Finance, for a special event, program, service, or activity receiving funding support from the City. The report must be accompanied by documentation, including receipts for all purchases, if requested. This requirement shall not apply to programs, services, or activities for which the City is underwritten contractual agreement. Any such requirement shall be dictated by the terms of said agreement. Failure of an organization or individual to provide a proper report and documentation of allowable incurred expenses may result in denial of future funding support requests. E. El Toyon Park The use of El Toyon Park for special events is prohibited. F. Use of Mobile Stage The mobile stage shall be used only on City p arklands, and/or other public property wi thin the limits of National City. Any events outside this purview and requesting use of the City stage must apply through the special event process. The USER of the stage shall be responsible for any damage to the u nit resulting from carelessness or misuse. Page 263 of 623 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: December 6, 2022 RELATED POLICY REFERENCES: City Council Policy# 704 - Limitation on City Approved Special Events within the City City Council Policy# 801 - Field and Facility Rules and Regulations Page 264 of 623 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: December 6, 2022 ATTACHMENT "A" NATIONAL CITY CO-SPONSORED EVENTS Event Title Organizer Timing National City International Mariachi Festival National City Chamber of Commerce March Granger Jr. High Cultural Fair Granger Jr. High Spring Job Fair N.C. Chamber of Commerce Spring July 4th Carnival National City Host Lions Club July Mabuhay Festival Mabuhay Festival June Las Palmas 5K and 1 Mile Walk Las Palmas Elementary School June Blood Drive American Red Cross June Auto Heritage Days N.C. Chamber of Commerce August Relay for Life American Cancer Society July Bayside Brew &Spirits Fest N.C. Chamber of Commerce September OneSight Vision Clinic N.C. Host Lions Club October Salute to Navy N.C. Chamber of Commerce October Maytime Band Review Maytime Band Association October Sweetwater High Homecoming Sweetwater High School Fall Community Concert Band Series (up to 4 concerts annually /per year) N.C. Community Concert Band Quarterly Spirit of the Holidays N.C. College Campus Lions N.C. Fire Department Local 2744 December Christmas with Kids Christmas with Kids December Note: Co-sponsored events that reoccur on the same date, or weekend, each year will maintain, “first rights” to their date if the special event permit application is received within five months of the recurring event date. After the five month application deadline, other interested parties will be able to apply. Events scheduled on recurring weekends (such as the J St., 2"d, 3rd, 4'", or 5'" weekend of a month) will be defined by the first date of the event is open to the public. Page 265 of 623 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: December 6, 2022 ATTACHMENT "B" NATIONAL CITY SPONSORED EVENTS Event Title Organizer Timing Movies in the Park Community Services Summer NC Gets Active Community Services Quarterly Summer Concerts Community Services Summer Miss. National City Pageant Community Services July National Night Out Police Department, Community Services, FFA August 9/11 Remembrance Ceremony Fire Department September Fiestas Patrias Community Service September National City Birthday Celebration Community Services September National City Cruising Event(s) City Manager’s Office TBD State of the City Mayor's Office Fall Family Tennis Day Community Services October Annual Volunteer Dinner Community Services Fall Dia de los Muertos Mayor's Office Oct/Nov Veteran's Day City Manager's Office November Turkey Giveaway Mayor's Office November A Kimball Holiday Community Services December Community Service Day Community Services April Page 266 of 623 RESOLUTION NO. 2022 – RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, AUTHORIZING THE AMENDMENT OF CITY COUNCIL POLICY 802, “CITY SUPPORT FOR SPECIAL EVENTS, ACTIVITITES, PROGRAMS, AND SERVICES,” ADDING EVENTS TO THE SPONSORED AND CO-SPONSORED LIST BE IT RESOLVED, by the City Council of the City of National City that City Council Policy No. 802, entitled “City Support for Special Events, Activities, Programs and Services” is amended as recommended by the Director of Community Development. BE IT FURTHER RESOLVED, by the City Council of the City of National City that the amended Policy attached hereto as Attachment “A” and by reference incorporated herein is hereby adopted. PASSED and ADOPTED this 6th day of December, 2022 Alejandra Sotelo-Solis, Mayor ATTEST: Luz Molina, City Clerk APPROVED AS TO FORM: Barry Schultz, Interim City Attorney Page 267 of 623 AGENDA REPORT Department: City Manager's Office Prepared by: Pedro Garcia, Economic Development Manager Meeting Date: Tuesday, December 6, 2022 Approved by: Brad Raulston, City Manager SUBJECT: Approval of Three (3) Cannabis Business Development Agreements RECOMMENDATION: Adopt a Resolution entitled, “Resolution of the City Council of the City of National City, California, Approving the Cannabis Business Development Agreements with Shryne Group, Off the Charts, and Sessions by the Bay.” BOARD/COMMISSION/COMMITTEE PRIOR ACTION: Not Applicable. EXPLANATION: Background October 2019 As part of Council direction on gathering input on the criteria of a cannabis development agreement a Cannabis Community Forum was held in the National City Library October 15, 2019. This forum sought input from community members to guide the development of regulations for commercial cannabis business. A survey was also posted online from October 16, 2019 through November 5, 2019. The survey was circulated through social media, sent out to past workshop participants through Constant Contact, and sent out to larger National City Constant Contact Data Base. February 18, 2020 On February 18, 2020 Staff returned to the City Council to provide a detailed fiscal analysis based on the direction received at the September 17th meeting and results of the community workshop and survey. Based on the results of the fiscal analysis and cannabis outreach, Staff sought direction from the City Council on two items; 1. Established a rate of 5% gross receipts for all cannabis businesses, regardless of type 2. Council Adopted to expand allowed cannabis business locations from 3 to 6 with 3 remaining in the originally proposed Industrial Zone and # being added to the areas zoned Tourist Commercial (TC) in the Marina District west of the I-5. City Council directed Staff to move forward with the recommendations as presented, and for Staff to return with a detailed Commercial Cannabis Ordinance. The detailed ordinance would address the rules and regulations surrounding commercial cannabis activity within the City, initial application procedures and security requirements. Page 268 of 623 March 17, 2020 Cannabis ordinance was originally scheduled for a first hearing at City Council March 17, 2020. Due to Covid-19 the item was pulled from the agenda. May 4, 2021 The third reading and adoption of the ordinance was conducted at the May 4, 2021 Council meeting. November 9, 2021 At the November 9, 2021 City Council meeting it was affirmed that there would be a point system for the various application evaluation criteria, which was based off community feedback. It was also established that evening to incorporate a local preference program for applicants who live in National City. April 7, 2022 The 60-day application window closed and the following week the cannabis applications began to get processed. The City received 17 applications all which were processed in the same 2- phase process. The top six (6) applications are moved onto Phase 3 of the cannabis application process. Phase 1 of Cannabis (Determination of Eligibility) The City checked for completeness of applications and also processed background checks. Those applications with minor deficiencies were allowed five (5) business days from the day of their notice to provide the requested documentation to City staff. Of those deficient applications, all applicants provided the necessary documentation and all were deemed complete. Phase 2 (Application Evaluation and Review) Phase 2 of the cannabis application process reviewed and scored all application packets. This phase took approximately 60 days and produced a ranked list of applicants for each category. During this phase, applications were evaluated, scored, and ranked based on adopted criteria on a pass/fail basis by an independent third party (SCI Consulting). All applicants were awarded points in several different categories with a range of points allotted for each. Business Plan (500 points) Labor, Equity, Diversity & Inclusion Plan (600 points) Safety Plan (350 points) Security Plan (350 points) Qualifications of Owners (400 points) Neighborhood Compatibility Plan (300 points) Community Benefits & Investment Plan (400 points) Proposed Location (100 points) A minimum of two (2) permits are dedicated to applicants who qualify as Local Owners and score a minimum of 90% (2,700 points) in Phase 2 of the review process, regardless of whether those Commercial Cannabis Business finish in the top six ranking. To establish local owner preference applicants must be residents of National City for a minimum of 3 years prior to November 9, 2021 and must hold a majority ownership (51% or more) of the business. Local Owner applicants received an additional 5% (150 points) added to their application score. One (1) application is reserved for a consumption lounge. Page 269 of 623 Phase 3 (Developer Agreement Negotiations) Phase 3 of the cannabis application process is to establish a development agreement with each of the currently qualifying top six (6) applicants. Only applications that scored 90% or higher will qualify to remain on the eligibility list. During Phase 3 of the cannabis process the City will meet with applicants to begin negotiations. This phase will set the Cannabis General Fund Fee, security and safety plans, conditions, and the National City Community Benefit agreement for cannabis operators in the city. Once the applicant and City have agreed upon a development agreement, those applicants and their respective development agreements will be presented to the full City Council for a final approval. For administrative purposes, City staff is presenting the top two (2) storefront retail applicants and 1 consumption lounge applicant to begin phase 3. Staff is seeking approvals to all three (3) development agreements. Exhibit A, B, and C are the mutually agreed upon development agreements that all three applicants agreed upon. The development agreements encompass the previously mentioned items, but the focus of negotiation is the Community Benefit plan. After a joint negotiation meeting that included Shryne Group (Stiiizy), Off the Charts, and Sessions by the Bay. The following conditions have been included in the agreements: General Fund Fee of 5% gross receipts o Distribution activities at 2% gross receipts Community Benefit Plan o National City Community Benefit Fund of 1% Net Profit o 30% local hire or previously incarcerated individuals of cannabis misdemeanors o 1 community clean up event per year o 2 drug prevention seminars per year collectively Safety & Security o 1 guard minimum to be onsite during operating hours All security guards employed by the Business shall be licensed and possess a valid Department of Consumer Affairs “Security Guard Card” at all times. In addition, any security guard employed by the Business or security firm retained by the Business must first be approved by the City’s Chief of Police. Neighborhood security guard patrols shall be conducted every hour, for a two-block radius surrounding the Business during all hours of operation. o Entire safety and security plans will be cited and referenced from the application submittals Consumption Lounge o Consumption Hours 9pm – 2am. No sale of cannabis would occur during these hours, only consumption of previously sold cannabis at the business. The General Fund Fee will be collected by the City on a monthly basis and the National City Community Benefit fund will be collected by each cannabis business. The business will create an internal fund where the 1% will be collected. Each year on October 1, cannabis businesses will submit a summary of the upcoming year and how the 1% will be spent in the community f or administrative review and approval. Staff is seeking approval of conditions and to approve the three (3) development agreements. Page 270 of 623 Past Associated Staff Reports 4.24.2019 Budget Workshop https://www.nationalcityca.gov/home/showpublisheddocument/22173/636912018708470000 9.17.2019 (PDF page 211) https://www.nationalcityca.gov/home/showpublisheddocument/22770/637039039772170000 2.18.2020 (PDF page 360) https://www.nationalcityca.gov/home/showpublisheddocument/23430/637172114800770000 3.2.2021 (PDF page 63) https://www.nationalcityca.gov/home/showpublisheddocument/26220/637498626139200000 4.6.2021 (PDF page 180 – agenda item 17) and (page 233 – agenda item 17) https://www.nationalcityca.gov/home/showpublisheddocument/26478/637528825830700000 5.4.2021 (PDF page 235 - agenda item 20 AND page 287- agenda item 21) https://www.nationalcityca.gov/home/showpublisheddocument/26791/637605648657030000 FINANCIAL STATEMENT: The 5% Gross Receipts General Fund Fee is estimated to generate approximately $500,000 per business per year. The 1% net profit fund will generate approximately $50,000 per business per year. RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL: Economic Development – Maximize economic development strategies ENVIRONMENTAL REVIEW: This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065. PUBLIC NOTIFICATION: Agenda Report posted within 72 hours of meeting date and time in accordance with Brown Act. ORDINANCE: Not Applicable EXHIBITS: Exhibit A – Development Agreement – Sessions Ventures Exhibit B – Development Agreement – Shyrne Group National City Exhibit C – Development Agreement – Off the Charts Exhibit D – Resolution Approving Cannabis Development Agreements Exhibit E - Presentation Page 271 of 623 1 COMMERCIAL CANNABIS BUSINESS LICENSE DEVELOPMENT AGREEMENT This Development Agreement (“Agreement”) is made and entered into as of December 6, 2022 (the “Effective Date”) between the CITY OF NATIONAL CITY, a California municipal corporation (“City”), and Sessions Ventures, a California LLC doing business as Sessions by the Bay (“Licensee”). City and Licensee are hereinafter collectively referred to as the “Parties” and singularly as “Party.” RECITALS A. The City Council previously adopted an ordinance to add Chapter 9.60 to National City Municipal Code (“NCMC”) to permit limited commercial cannabis activities. B. Pursuant to Resolution No. 22- , the City Council adopted Application Procedures and Guidelines (the “Guidelines”) governing the issuance of commercial cannabis licenses. C. Licensee submitted an application for a commercial cannabis license dated April 7, 2022 (the “Application”), which was reviewed by the City in accordance with the Guidelines. D. On [December 6, 2022], the City awarded a Commercial Cannabis Permit to Licensee (“Permit”), to operate a retail and consumption lounge, cannabis business which will be located at 700 Bay Marina Drive, also known as San Diego County APNs 559-160-33 (the “Property”). E. Pursuant to NCMC Section 9.60.100 and the Guidelines, the Licensee must enter into an Development Agreement with City prior to commencing operations. F. The City and Licensee freely and voluntarily negotiated the terms and conditions of this Development, and the City Council adopted Resolution No 22- approving this Agreement. G. The Parties acknowledge that this Agreement is not a statutory development agreement authorized by Government Code section 65864 and that this Agreement confers no entitlement or vested rights of any kind to Licensee to operate a cannabis business. AGREEMENT NOW, THEREFORE, in consideration of the covenants and obligations set forth herein, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows: 1. Incorporation of Recitals. The recitals and defined terms set forth above are hereby incorporated into this Agreement. 2. Effective Date and Term. Page 272 of 623 2 This Agreement shall commence on the Effective Date and remain in effect until the expiration, termination, surrender, or revocation of Licensee’s Commercial Cannabis Permit, unless sooner terminated as provided for herein. 3. Description of Business and Ownership. Licensee’s has been awarded a Commercial Cannabis Permit dated December 6, 2022 to operate a commercial cannabis business at the Property (the “Business”). Licensee shall operate the Business as a retailer and consumption lounge, as those terms are defined in NCMC Chapter 9.60. The terms and conditions of the Commercial Cannabis Permit are incorporated into this Agreement by reference. 4. Applicable Laws and Regulations. 4.1 General. Licensee shall at all times comply fully with all current and future State and City laws and regulations applicable to Licensee’s Business, including but not limited to NCMC Chapter 9.60. Licensee shall ensure such compliance by all of Licensee’s employees, contractors, vendors, and members of the public invited or allowed access to the Business. 4.2 State License. Licensee shall promptly apply for and obtain all State licenses required for the Business’s operations. Failure to obtain and maintain required State licenses during the term of this Agreement shall constitute a default under this Agreement and shall be grounds for termination. 5. Conditions of Approval. In addition to the requirements contained in the Plans, as defined in Section 6 below, the Licensee shall at all times operate the Business in accordance with the Conditions of Approval for the Business, attached hereto as Exhibit A and incorporated herein by reference (the “Conditions of Approval”). To the extent there is a conflict or inconsistency between the Conditions of Approval and the Plans, the Conditions of Approval shall control. To the extent the Conditions of Approval conflict with any applicable state or local law or regulation, currently existing or enacted in the future, the applicable law or regulation shall control. The City Manager, or his or her designee, shall have the authority to amend the Conditions of Approval subject to the requirements of this Agreement. 6. Operating Requirements. 6.1 Operating Requirements. In addition to any other applicable requirements, Licensee shall at all times operate the Business in accordance with the operating procedures contained in Exhibit B, attached hereto and incorporated by reference. Such operating procedures include requirements for the opening and closing of the Business, customer check-in, product delivery, use of specific point-of-sale software, inventory control, diversion prevention, product distribution, transportation procedures, odor control, and quality control. Nothing in this section shall prevent the Licensee from changing the mix and type of cannabis products at the Business. Page 273 of 623 3 6.2 Safety Plan. In addition to any other applicable requirements, Licensee shall at all times operate the Business in compliance with the Safety Plan contained in Exhibit C, attached hereto and incorporated by reference, including but not limited to all fire prevention and suppression measures, accident and reporting procedures, medical emergency response procedures, and waste management procedures identified therein. 6.3 Security Plan. In addition to any other applicable requirements, Licensee shall at all times operate the Business in compliance with the Security Plan submitted with the Licensee’s application and on file with the City. The Security Plan identifies access control requirements, perimeter security standards, inventory control measures, cash handling procedures, information/records security, lighting and surveillance requirements, theft and diversion prevention strategies, and employee training policies, among other topics. 6.4 Amendments. Licensee shall operate Business in accordance with the requirements of the this Section 5 and the plans contained in Exhibit B and C attached hereto (collectively, the “Plans”) , with such amendments or changes approved by the City Manager, or his or her designee. To the extent there is a conflict or inconsistency between the Plans and this Agreement, this Agreement shall prevail. 7. Community Benefits. Licensee has offered to provide certain community benefits as part of the operation of the Business, and the City has accepted such offer. The community benefits to be provided by Licensee are specified in this Section. 7.1 National City Community Benefit Fund. a. Community Benefit Fund. Licensee hereby agrees to donate an amount equal to one percent (1%) of the Net Profits of the Business, as defined herein, to nonprofit community organizations located and doing business within National City, subject to the requirements of this Section (the “National City Community Benefit Fund”). b. Annual Plan. No later than the October 1 of each year, beginning the year after the Business commences operations, Licensee shall submit to the City an annual plan for the disbursement of the National City Community Benefit Fund (the “Annual Plan”). The Annual Plan shall identify the recipients of the funds, the estimated amount that shall be provided to each recipient, and such other information as may reasonably be required by the City. The recipients of the proceeds of the National City Community Benefit Fund shall be exempt from taxation pursuant to Internal Revenue Code section 501(c)(3), shall be in good standing with the laws of the State of California, and shall provide sufficient services within the City of National City that benefit the public (each a “Recipient”). The City may, in its sole discretion, determine that a proposed Recipient does not provide sufficient services within National City that benefit the public, and such determination shall be conclusive. The City shall review, and either approve or reject, the Annual Plan. If the City rejects the Annual Plan, it shall notify the Licensee in writing of the reasons for the rejection. Thereafter, the Licensee shall submit a revised Annual Plan within forty-five (45) days. If the City fails to approve or reject the Annual Plan within thirty (30) days of submittal by the Licensee, the Annual Plan shall be deemed approved. Licensee may at any time apply to amend its Annual Plan, subject to the same procedures contained in this Section 7.1. Page 274 of 623 4 7.2 General Fund Contribution. a. Voluntary General Fund Contribution. Licensee hereby agrees to donate an amount equal to five percent (5%) of the Gross Receipts of the Business, as defined herein, to the City’s General Fund, subject to the requirements of this Section 7 (the “General Fund Contribution”). The General Fund Contribution may be used for any lawful municipal purpose as determined by the City Council, in its sole and absolute discretion. b. Monthly Payments. No later than the 15th day of each calendar month, Licensee shall pay to the City the General Fund Contribution from the previous calendar month. The payment shall be accompanied by a report, on a form approved by the City’s Finance Director, identifying the total amount of the Gross Receipts of the Business from the previous month and any other information requested by the City. c. Penalty for Delay. If Licensee fails to remit any amount owed pursuant to Section 7.2(b) within the time required, Licensee shall pay a penalty of ten percent (10%) of the amount owned in addition to the outstanding amount. The amount of the penalty shall increase by an additional ten percent (10%) each additional thirty (30) days during which the Licensee fails to make the requirement payment. Licensee and City agree that this penalty is necessary in order to ensure that Licensee timely provides the funds it has promised to donate and which the City has budgeted based on such promise. 7.3 Financial Reporting & Administration. a. Gross Receipts. As used in this Agreement, “Gross receipts” includes the total amounts actually received or receivable during a calendar year for the sale of any cannabis goods for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale or delivery of cannabis materials, cannabis services, cannabis goods within the City of National City, or outside the City of National City when the proceeds are credited to or for the account of the Business. Included in "gross receipts" shall be all commissions, fees, receipts, receipts from coin-operated equipment, cash, credits and property of any kind or nature, without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. Excluded from "gross receipts" shall be the following: i) cash discounts allowed and taken on sales; ii) credit allowed on property accepted as part of the purchase price and which property may later be sold; iii) any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser; iv) such part of the sale price of property returned by purchasers upon rescission of the contract of sale refunded either in cash or by credit; v) amounts collected or held in trust for others where the business is acting as an agent or trustee, to the extent that such amounts are paid to or for the benefit of those for whom collected (the collector may require proof of payment or disbursement; vi) receipts of refundable deposits, except that refundable deposits forfeited and taken into the income of the business shall not be excluded and vii) non-cannabis materials, goods, wares or merchandise. Page 275 of 623 5 b. Net Profits. As used in this Agreement, “Net profits” shall mean the net taxable income of the Business as reported annually to the California Franchise Tax Board on its annual tax return, less any federal, state, or local taxes paid by Business and not otherwise reported as part of the net taxable income of the business. c. Reporting of Gross Receipts. No later than February 15 of each year during the Term of this Agreement, Licensee shall deliver to City a report, on a form approved by the City’s Finance Director, showing: (i) The Business’s Gross Receipts and Net Profits from the previous calendar year (the “Statement of Receipts”); (ii) The total amount of the General Fund Contribution; and (iii) The total amount contributed to the National City Community Benefit Fund and the actual amount of money provided to each Recipient. d. Statements of Receipts. Licensee shall keep complete, accurate and appropriate books and records of all receipts and expenses from the Business’s operations in accordance with generally accepted accounting principles (“Books and Records”). Books and Records, as well as all other relevant documents as City reasonably requires, shall, upon reasonable written notice, be open for inspection by City, its auditors, or other authorized representatives. If at any time during the Agreement, such Books and Records are deemed inadequate in the reasonable judgment of City, Licensee shall, upon the written notice of City, be given a one quarter period (three months) to cure such inadequacies. If, in the reasonable judgment of the City, Licensee has not cured the Books and Records inadequacies, City shall consider Licensee to be in default of this Agreement, and may choose to terminate this Agreement. e. Audit. City shall have the right to audit and examine Licensee’s Books and Records, and other relevant documents and items in Licensee’s possession (“Audit Items”), but only to the extent necessary for a proper determination of gross receipts, net profits, and expenses from operations. Upon written request by City, Licensee shall make all Audit Items available to the City within thirty (30) days of City’s request. f. Retention of Receipts. Licensee shall preserve Audit Items in the City for a period of at least five (5) years. g. Copies of Tax Filings. Upon request, Licensee shall provide City with copies of any reports and tax filings Licensee is required to provide to the County of San Diego, the State, and the federal government. h. Future Revenue Mechanisms. During the term of this Agreement, if the City imposes an alternative revenue mechanism specifically related to commercial cannabis business permit holders, Licensee agrees to pay the City the greater of the payment required under such alternative revenue mechanism or the General Fund Contribution. Page 276 of 623 6 Payments that are not specific to commercial cannabis business permit holders (e.g. apply to both cannabis and non-cannabis businesses), shall be in addition to, and not in lieu of, the payments required by this Agreement. 7.4 Miscellaneous Community Benefits a. Community Clean Up. Licensee shall organize and host one community clean-up event per calendar year. Licensee shall be solely responsible for all costs associated with such event, and shall obtain any permits and approvals from any responsible governmental agency necessary for the event. b. Drug Prevention Seminars. The Licensee shall participate in at least two (2) drug prevention seminars hosted collectively by all cannabis businesses operating in National City. The seminars shall be offered free of charge to the public at a location within the City of National City, and shall focus on responsible use of cannabis and secure storage of cannabis to prevent access by minors. Licensee shall work in good faith to develop and sponsor such seminars. c. Employment Priorities. In an effort to further restorative justice and the local economy, the Licensee shall use a good faith effort to ensure that at least thirty percent (30%) of the employees of the Business are either residents of the City of National City or individuals previously convicted of misdemeanor offenses related to the sale, distribution, use, or cultivation of cannabis. 8. Location Change & Transfer 8.1 Change of Location. The Licensee shall not change the location of the Business unless and until the Licensee first complies with the requirements of NCMC Section 9.60.430, and obtains the necessary approvals. 8.2 Transfer of Ownership. The Licensee shall not transfer ownership or control of the Business or the Permit unless and until the Licensee first complies with the requirements of NCMC Section 9.60.420, and obtains the necessary approvals. 9. Processing Fees and Charges. Licensee shall pay City, processing, inspection, plan checking, permit, and monitoring fees and charges required by City for processing Licensee’s applications and requests for permits, inspections, approvals and actions, and monitoring compliance with any permits issued or approvals granted, or the performance of any conditions. 10. No Vested Rights. The Parties acknowledge and agree that this Agreement is not a statutory development agreement authorized by Government Code section 65864. This this Agreement confers no Page 277 of 623 7 entitlement or vested rights of any kind to Licensee to operate the Business, or engage in any commercial cannabis activity. 11. Voluntary Agreement. The terms and conditions of this Agreement are the result of voluntary negotiations between the Parties, and no term in this Agreement has been imposed by the City, including without limitation the General Fund Contribution. The City and Licensee have each voluntarily and freely elected to enter into this Agreement. Each of the Parties have had an equal opportunity to participate in the negotiating and drafting of this Agreement, and to review the Agreement with legal counsel, therefore any construction as against the drafting party shall not apply to this Agreement. 12. Indemnity. Licensee shall indemnify, defend, and hold harmless to the fullest extent permitted by law, City and its officers, officials, employees, consultants, attorneys, and volunteers (“Indemnitees”) from and against any and all claims, liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with the operation or existence of the Business, this Agreement, or the Property (including any challenge to the validity of any provision of this Agreement or the Permit approvals, or Licensee’s failure to comply with any of its obligations under this Agreement, or Licensee’s failure to comply with any current or prospective law); provided, however, that Licensee shall have no obligations under this Section for such loss or damage which was caused by the sole negligence or willful misconduct of the Indemnitees. This indemnification obligation shall survive this Agreement and shall not be limited by any insurance policy, whether required by this Agreement or otherwise. 13. Waiver & Hold Harmless Licensee waives, releases, and holds harmless the City and its officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney’s fees), suits or other expenses which arise out of, or which are in any way relate to this Agreement, including the enforcement of any term or condition stated herein, the payment of the General Fund Contribution, the issuance of the Cannabis Business Permit, or the Operation of the Business. Notwithstanding anything in this Agreement to the contrary, the Parties acknowledge that the City would not have entered into this Agreement had it been exposed to liability for damages from Licensee, and therefore, Licensee hereby waives all claims for damages against the City for breach of this Agreement. Licensee hereby voluntarily and unconditionally waives any rights it may have to challenge this Agreement or any term contained herein. Licensee specifically waives the provision of California Civil Code Section 1542, which provides as follows: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR EXPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THIS Page 278 of 623 8 RELEASE, AND THAT IF KNOWN TO HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR THE RELEASED PARTY.” In this connection and to the extent permitted by law, Licensee hereby agrees, represents and warrants that Licensee realizes and acknowledges that factual matters now unknown to it may have given or may hereafter give rise to causes of action, claims, demands, debts, controversies, damages, costs, losses and expenses which are presently unknown, unanticipated and unsuspected, and Licensee further agrees, represents and warrants that the waivers and releases herein have been negotiated and agreed upon in light of that realization and that Licensee nevertheless hereby intends to release, discharge and acquit the City from any such unknown causes of action, claims, demands, debts, controversies, damages, costs, losses and expenses which might in any way be included as a material portion of the consideration given to City by Licensee in exchange for City’s performance hereunder. City has given Licensee material concessions regarding this transaction in exchange for Licensee agreeing to the provisions of this Section. City and Licensee have each initialed this Section to further indicate their awareness and acceptance of each and every provision hereof. _____________________ ________________________ CITY’S INITIALS LICENSEE’S INITIALS 14. Liability. City shall not assume liability or responsibility for any conditions related to the construction or use of the Business that may be in violation of local and/or state health and building codes (“Conditions”). City shall not assume responsibility for correcting Conditions, either existing or discovered during the course of the construction or operation of the Business. Failure to correct Conditions during the course of construction or operation of the Business shall not imply that City has accepted Conditions nor forfeit City’s right to have Conditions corrected at a future date. 15. Defaults. Notwithstanding other provisions of this Agreement, any failure by either party to perform any term or provision of this Agreement, which failure continues uncured for a period of thirty (30) days following written notice of such failure from the other party (“the Complaining Party”) (unless such period is extended by mutual written consent), shall constitute a default under this Agreement. The Complaining Party’s notice (“Default Notice”) shall specify the nature of the alleged failure, and may specify the manner in which the failure satisfactorily may be cured by the other party (“the Defaulting Party”). If the nature of the alleged failure is such, that it cannot reasonably be cured within such thirty (30) day period, then no default shall be deemed to have occurred if: (a) the cure shall be commenced at the earliest practicable date following receipt of the Default Notice; (b) the cure is diligently prosecuted to completion at all times thereafter; (c) at the earliest practicable date (if no event later than thirty (30) days after the Defaulting Party’s receipt of the Default Notice), the Defaulting Party provides written notice to the Complaining Page 279 of 623 9 Party that the cure cannot practicably be completed within such thirty (30) day period; and (d) the cure is completed at the earliest practicable date. Upon the occurrence of a default under this Agreement, the Complaining Party may, in addition to any and all other rights or remedies of the Complaining Party hereunder and/or provided by law, shall have the right to: i) terminate this Agreement, or ii) commence an action against the Defaulting Party for damages, injunction and/or specific performance. No remedy specified in this Section shall be considered exclusive of any other remedy, but the same shall be cumulative and shall be in addition to every other remedy provided hereunder or now or hereafter existing at law or in equity or by statute, and every power and remedy provided by this Agreement may be exercised from time to time and as often as occasion may arise or as may be deemed expedient, subject to any limitations set forth herein. 16. Termination. 16.1 By Mutual Consent. This Agreement may be terminated in whole or in part by the mutual written consent of all the Parties. 16.2 Failure to Obtain or Maintain Required State or Local Licenses. If Licensee fails to obtain or maintain in effect all State and City licenses required for the Business, City may immediately terminate this Agreement. 16.3 State or Federal Action. In the event that State law permitting the use for which the Commercial Cannabis Permit was issued is amended or repealed resulting in the prohibition of such use, either Party may terminate this Agreement. 16.4 Surrender or Revocation of Commercial Cannabis Permit. If Licensee voluntarily surrenders their Permit, or if Licensee’s Permit is revoked by City, Licensee shall immediately cease all operations at the Business, and this Agreement shall terminate automatically, without further action required by either Party. 16.5 Default. If Licensee is in default of any provision of this this agreement, including but not limited to the requirements of Section 7, the City may terminate this Agreement pursuant to Section 14. 16.6 Effect of Termination of Agreement on Commercial Cannabis Permit. Licensee agrees that termination of this Agreement in accordance with this Section, shall also result in the automatic termination of the Licensee’s Commercial Cannabis Permit. Upon termination of this Agreement, Licensee shall remit all fees and payments due as of the effective date of the termination. 17. Future Amendments. The City Manager shall have the authority to approve minor amendments to this Agreement without further approval from City Council. For the purposes of this section, an amendment shall Page 280 of 623 10 be a minor amendment if it substantially conforms with the material terms of this Agreement. Without limiting the generality of the foregoing, changes to the time for either Party to perform any obligation and changes in reporting obligations may be made via a minor amendment. Changes to the amount of gross receipts the Licensee must use for the National City Community Benefit Fund or the General Fund Contribution shall not be minor amendments. The determination of the City Manager regarding whether an amendment qualifies as a minor amendment shall be definitive. 18. Assignment; Binding on Successors. Licensee may not transfer or assign its interests under this Agreement, in whole or in part, without the prior written consent of the City, which may be withheld for any reason. Subject to the restrictions on transfers set forth herein or the NCMC, this Agreement shall bind and inure to the benefit of the Parties and their respective permitted successors and assigns. Any reference in this Agreement to a specifically named Party shall be deemed to apply to any permitted successor and assign of such Party who has acquired an interest in compliance with this Agreement or under law 19. Notices. All notices required by this Agreement shall be in writing and personally delivered or sent by certified mail, postage prepaid, return receipt requested to the following addresses: Notice to City shall be addressed as follows: CITY OF NATIONAL CITY Attn: City Manager 1243 National City Blvd National City, CA 91950 with copies to: CITY OF NATIONAL CITY Attn: City Attorney 1243 National City Blvd National City, CA 91950 Notice to Licensee shall be addressed as follows: 700 Bay Marina Drive National City CA, 91950 Either Party may change the address stated herein by giving written notice to the other Party, and thereafter, notices shall be addressed and transmitted to the new address. All notices shall be deemed received on the earlier of the date that personal delivery is effected or the date shown on the return receipt. 20. Severability. Page 281 of 623 11 If any term, condition, or covenant of this Agreement is declared or determined by any court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall not be affected, and the remaining provisions of the Agreement shall be read and construed without the invalid, void, or unenforceable provision(s). 21. No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement. 22. No Third Party Beneficiaries. The parties do not intend to create, and nothing in this Agreement shall be construed to create any benefit or right in any third party. 23. Action or Approval. Whenever action and/or approval by City is required under this Agreement, the City Manager of the City of National City, or his or her designee, may act on and/or approve such matter unless specifically provided otherwise, or unless the City Manager determines in his discretion that such action or approval requires referral to City Council for consideration. 24. Governing Law and Forum. This Agreement shall be construed in accordance with the laws and judicial decisions of the State of California, and venue or any legal or equitable action shall be in the state or federal courts of County of San Diego. 25. No Agency, Joint Venture, or Partnership. City and Licensee hereby renounce the existence of any form of agency relationship, joint venture, or partnership between City and Licensee, and agree that nothing contained herein or in any document executed in connection herewith shall be construed as creating any such relationship between City and Licensee. 26. Entire Agreement. The provisions of this Agreement comprise all of the terms, conditions, agreements and representations of the Parties. This Agreement may not be altered or amended, and no provision hereof may be waived, except by written agreement executed by the authorized representatives of the Parties. The Parties hereby agree that terms of this Agreement have not been changed, modified, or expanded by any oral agreements or representations entered into or made prior to or at the execution of this Agreement. 24. Counterparts. Page 282 of 623 12 This Agreement may be executed in one or more counterparts, each of which shall be an original and all of which taken together shall constitute one instrument. Exhibit A Conditions of Approval Exhibit B Operating Procedures Exhibit C Safety and Security Plan [SIGNATURES ON FOLLOWING PAGE] Page 283 of 623 13 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the dates set forth below. CITY OF NATIONAL CITY, a municipal corporation By:_________________________________ Dated: ______________________________ Sessions Ventures, a LLC By:_________________________________ Name: ______________________________ Its:_________________________________ Dated: ______________________________ Attest: _________________________________ City Clerk Approved as to form: _________________________________ City Attorney 5212884.2 Page 284 of 623 14 EXHIBIT A CONDITIONS OF APPROVAL General Conditions: 1. Licensee shall post clearly visible signs at all entrances and exits and at both on and off- site parking areas, requesting patrons to respect residents of adjacent residential neighborhoods by being quiet when leaving, reminding patrons of the existence of permit parking districts within the neighborhoods adjacent to the business, and that the consumption of cannabis in public areas is not permitted pursuant to state law. 2. A responsible person shall always be on the premises to act as manager and supervise employees during business hours. 3. The applicant shall comply with the applicable requirement of NCMC Title 12, Noise Control. Noise complaints shall be immediately addressed. 4. Odor generated by the Business shall not be detectable outside the Business to a person of normal olfactory sensitivities, including anywhere on adjacent property or public rights- of-way, or within any other unit located within the same building as the Business. An odor absorbing ventilation and exhaust system shall be installed so that odor generated within the Business is not detected outside of the Business. 5. Licensee shall proactively monitor and resolve any issues involving disturbances, loitering or ingestion of cannabis in parking lots or surrounding streets, sidewalks, and alleys. 6. Licensee shall provide law enforcement and all neighbors within one hundred feet of the Business with the name and phone number of an on-site community relations employee to notify if there are operational problems with the establishment. 7. Licensee shall employ a minimum of one (1) on-site security guards during all hours of operation.. All security guards employed by the Business shall be licensed and possess a valid Department of Consumer Affairs “Security Guard Card” at all times. In addition, any security guard employed by the Business or security firm retained by the Business must first be approved by the City’s Chief of Police, in his or her reasonable discretion. Neighborhood security guard patrols shall be conducted every hour, for a two-block radius surrounding the Business during all hours of operation. 8. The Licensee shall not employ security guards armed with firearms or tasers. 9. Upon presentation of proper credentials by any Code Compliance or Law Enforcement Officer, the Licensee shall consent to entry of the place of business at all reasonable times to enforce the provisions of this Agreement or the NCMC. 10. On-site sales of alcohol or tobacco, and on-site consumption of alcohol or tobacco products by patrons prohibited. 11. All proposed structures must comply with zoning and building code regulations and pass all requisite inspections and receive all permits required under applicable law. 12. All cannabis waste must be stored in a secured location and properly disposed by a cannabis waste collector. Page 285 of 623 15 13. The on-site consumption of alcohol, tobacco or cannabis by employees of the Business is prohibited while such employees are working. Consumption Area Specific Conditions: 1. Licensee shall comply with all applicable requirements in NCMC Chapter 9.60 (including but not limited to Section 9.60.265), state law, and any other applicable laws or regulations. 2. Licensee may sell any type of concentrate for consumption on-site in compliance with state packaging requirements, including combustible cannabis products for the purposes of smoking or vaping within the designated smoking area(s) and edible/ingestible cannabis products. The type of vaping products sold within the designated smoking area(s) shall be limited to single, individually packaged vape cartridges, pens, or concentrates of no more than one gram. 3. Licensee shall create patron consumption guidelines that may include the utilization of labels, menu notifications, signage, portion control, dosage monitoring, and staff education to prevent the overconsumption of the cannabis by patrons. 4. Licensee shall make an announcement at closing requesting patrons to respect the residents of the adjacent residential neighborhoods by being quiet when leaving. 5. Cannabis consumption areas shall not be visible to the public or by any persons under twenty-one years of age. 6. Licensee shall stop service to visibly impaired patrons and provide information on car services. 7. The indoor consumption area may be operational and open to the public between the hours of 6:00 a.m. and 2:00 a.m. Consumption of cannabis may occur in the consumption area during all hours the business is open, unless specifically prohibited by the State Bureau of Cannabis Control, or other applicable agency. No sales of cannabis or cannabis products shall occur between 10:00 p.m. and 2:00 a.m. 8. If the consumption area remains operational past 10:00 p.m., all cannabis and cannabis products offered for sale prior to 10:00 p.m. shall be secured and not visible to patrons in the consumption area. 9. Entry into the premises by persons under the age of twenty-one is prohibited. Page 286 of 623 SECTION 2.1: DAY-TO-DAY RETAIL OPERATIONS A. CUSTOMER CHECK-IN PROCEDURES Sessions Ventures LLC d/b/a Sessions by the Bay (“Sessions”) is committed to bringing National City a high- end, professional retail storefront and delivery experience. Sessions has organized the layout of its storefront in such a way as to facilitate a comfortable customer flow throughout the facility, as well as a clear divide between limited access areas, the retail area, and the rest of the building. Sessions’ retail operations will implement standard operating procedures and security measures based on a decade of developing and implementing best practices and years of fully compliant operations. Sessions uses LeafLogix as its Point-of-Sale (“POS”) software provider. LeafLogix is a state-approved cannabis software provider. Founded to operationalize the demands of running a compliant, high-volume retailer, LeafLogix unites all front of house, back of house, point of sale and business analytics functions into a single, all- encompassing platform — giving life to a dynamic retail management software system, designed exclusively for the modern retail cannabis dispensary. LeafLogix is an enterprise- grade, business management platform currently serving over 1500 cannabis facilities. Security Guards will be stationed at the exterior of the front entrance where they will inspect the customers identification as well as use an electronic identification scanner to help in age verification and authenticity of the identification. Sessions will never allow individuals under the age of 21 onto the premises unless they are medical patients 18 years of age or older who possesses a physician’s recommendation for cannabis medical use only. Because the proposal contemplates a Consumption Lounge, persons under 21 will be denied entry to that portion of the Facility, without exception.1 Staff will always verify the age of customers entering the Consumption Lounge to ensure persons under the age of 21 are not permitted by inspecting the person’s proof of identification 2, determining the customer’s age, and confirming the clear and certain identity of the entrant. Additionally, no employees under the age of 21 will be permitted to work at the Facility.3 After the Security Guard has verified the customer, the Security Guard will return the purchaser’s identification card, advise them to keep it available, and permit them to enter the lobby of Sessions’ facility and be directed to a waiting receptionist who is stationed behind the front check-in desk. The front check-in station is protected by bullet-proof glass to protect personnel and demonstrate to consumers (and staff) the emphasis placed on security and public safety. Sessions creates a customer profile for each individual within the LeafLogix software system to track purchase history, store contact information, and demonstrate compliance with age verification and identification regulations. Customers’ identifying documentation will be scanned and stored into the Sessions’ software, which features HIPAA compliant customer confidentiality protocols. Sessions will maintain a list of customers and current contact information to provide notice in the event of a recall. Additionally, at this time Sessions will confirm a customer’s explicit permission prior to including the customer on any text, email, and other marketing solicitations. All customer information stored on Sessions’ computer system will be protected from theft or dispersal using standardized information technology security measures. New and returning customers will have their profiles checked in and placed into a Waiting Queue prior to be directed through to the retail sales floor. Sessions’ Director of Security will oversee the installation and maintenance of 1 NCMC 9.60.265(e) 2 NCMC 9.60.250(a)(3) 3 NCMC 9.60.230(a) EXHIBIT B: Operating Procedures Page 287 of 623 the storefront’s computer systems and associated technology in order to ensure that they remain secure and uncompromised. Sessions trains its security and reception personnel to respectfully ask the customer to remove hats or sunglasses or to provide additional identification if they are unsure the person is indeed the customer in question based upon the picture on their identification card. If the customer’s identification card is expired or the Security Guard is unable to verify the identity of the customer, the Security Guard will kindly ask the customer to leave. If the customer refuses to leave or begins to act in a threatening manner, the Security Guard will initiate de-escalation protocols and potentially contact law enforcement if merited. For more information regarding Sessions’ safety and security plans, please see Safety Plan and Security Plan included as part of this application. Once the customer’s information has been entered into LeafLogix, the Receptionist will review the queue to determine if there is capacity to permit the customer into the retail floor. If so, the customer will be permitted to enter the retail sales area, which is under strict access control, through the use of a ‘buzz-in’ electronic or mechanical entry system designed to limit access from the lobby.4 Alternatively, the purchaser will be asked to wait in Sessions’ comfortable lobby, where educational and support materials will be readily available in both English and Spanish, until the customer’s name is called. No customers will be permitted to enter the retail sales area unless there is at least one Sessions employee physically present in the retail area.5 Any individual who cannot be properly verified will be asked to leave the retail store immediately. Sessions’ onsite Security Guards will ensure the individual leaves promptly and can help deter any disturbances to other verified customers. Sessions will verify the age and all necessary documentation of each individual to ensure the customer is not under the age of 18 years. If the potential customer is 18 to 20 years old, Sessions will confirm the customer’s possession of a valid doctor’s recommendation and/or Health and Safety Code Section 11362.71.6 All individuals seeking access to Sessions must show their government-issued identification, and, if appropriate, doctor’s recommendation of Medical Cannabis card, in order to gain access. These documents must also be shown at the point-of-sale station at the time of purchase. Doctor recommendations are not to be obtained or provided at the Facility.7 The verification process is crucial to Sessions’ operations because, if a storefront employee sells or otherwise transfers cannabis or cannabis products to a person not authorized to possess or consume cannabis under this chapter, the Bureau may revoke Sessions’ license. 4 NCMC, c. 9.60.250(b) 5 Cal. Code Regs. tit 4 §15402(b) 6 NCMC, c. 9.60.250(a)(1-2), Cal. Code Regs. tit 4 §15402(a) 7 NCMC, c. 9.60.250(a)(3) EXHIBIT B: Operating Procedures Page 288 of 623 B. PROCEDURES FOR RECEIVING DELIVERIES Receiving cannabis goods into inventory is a critical aspect of Sessions’ day-to-day operations. Once inventory is officially accepted into Sessions’ inventory, it becomes Sessions’ responsibility both from a regulatory perspective and as an accountable retailer. As such, Sessions has strict receiving protocols. Sessions’ Receiving Supervisor is responsible for documenting the receipt of cannabis products and will review all incoming inventory to ensure the product meets Sessions’ standards as well as all applicable regulations. Sessions will receive cannabis goods from licensed distributors in Sessions’ secure, non-public loading bay at the rear of the facility during business hours only. Sessions will only accept deliveries from California-licensed distributors or microbusinesses and will not accept any deliveries from outside the State of California. Sessions will require distributing licensees to contact Sessions’ storefront prior to their departure to inform Sessions’ staff of all incoming deliveries, as well as provide Sessions with a copy of the shipping manifest for review in advance so that Sessions may appropriately prepare for receiving the delivery at the mutually agreed estimated arrival time. When an order is approaching the storefront, the distributor’s staff will contact Sessions’ storefront again to inform Sessions’ employees of the distributor’s pending arrival. Prior to an expected distributor’s arrival, Sessions’ Security Guard will evaluate and monitor the exterior facilities to ensure the safe arrival of the distributor vehicle into the loading bay. At no point will a distributor employee enter the front entrance or customer lobby with cannabis goods. Security personnel will verify the distributors employee identification, ensure they have their required employee badge, log their visit into Sessions’ Vendor Log sheet, and allow their vehicle to enter the loading bay. Security will monitor distributors as they pull their transportation vehicles into the loading bay and move cannabis goods from the transportation vehicle into the receiving area. Once the drop-off is complete, a security guard will close and lock the loading bay door. Sessions will require that all distribution partner’s vehicles be enclosed and remain locked unless actively unloading. Prior to accepting any delivery of cannabis goods, Sessions’ staff will require the distributor’s staff to provide a copy of their Metrc manifest describing all inventory delivered. Sessions will locate the corresponding manifest in the Metrc portal and scan a copy of the manifest into Sessions’ inventory tracking system (LeafLogix). Sessions will ensure that the inventory received matches that described in the transport manifest. If Sessions determines that a transport manifest is missing any required information, or if the deliverer cannot produce a manifest, Sessions will not accept the delivery. If a delivery is rejected or if Sessions identifies any inconsistencies between the inventory on the transport manifest and the inventory actually received, a manager will document the discrepancy in Sessions’ inventory tracking system, which also communicates updates directly to Metrc. Shipping manifests will accompany all transfers of cannabis products to and from Sessions’ storefront. Upon receiving a delivery of cannabis goods, the Receiving Supervisor or Manager on Duty (“MOD”) at Sessions’ storefront will confirm the product’s name, strain name, weight, and identification number on the shipping manifest matches the information on the cannabis product label and package. Sessions will never accept a delivery of cannabis goods that are not packaged for final sale, and Sessions will never package or label goods as a retailer. All products will be packaged in compliance with state packaging and labeling requirements.8 8 Cal. Code Regs. tit 4 §15413(a) EXHIBIT B: Operating Procedures Page 289 of 623 Sessions will also ensure all manifests contain the information required by law. The manager will acknowledge the products received through LeafLogix (which communicates directly to Metrc), ensuring that the product names and weights in the system match the product packaging. Data entered into the state verification system will represent exact contents of deliveries and any returns of product as permitted by state regulations, including returns of recalled product to cultivation and manufacturing facilities. Sessions will require all cannabis and cannabis-infused products arriving at Sessions’ storefront be pre-packaged and feature a label affixed to the packaging. If the delivered products are mislabeled, damaged, of the wrong item, of the wrong amount, or are otherwise noncompliant or inconsistent with the transport manifest the MOD will reject the defective products and note the rejection in Metrc. In such a case, the MOD will notify the originating licensee and company management that the delivery was rejected, citing their reasoning, so that a new delivery with compliant/correct products is arranged as soon as possible. C. POINT-OF-SALE SYSTEM Sessions has designed its facility with an appropriate number of Point-of-Sale (“POS”) stations so that Sessions can effectively service its customers at all business hours without lengthy wait times. In Sessions’ National City storefront, Sessions estimates that, due to the innovative layout of Sessions’ sales floor, Sessions will be able to accommodate 9 point-of-sale stations without overcrowding of Sessions’ store. Each POS station is covered by camera surveillance that clearly records each sales location and register and features a time/date stamp. Sessions’ POS stations are located to allow for ease of service and customer flow throughout the store, avoiding the potential for long lines or loitering of customers within the storefront. Based on the size of the National City metro area, estimates of pedestrian traffic based on Sessions’ proposed location, and the number of POS stations and Sessions’ hours of operation, Sessions expect to serve almost 30,000 customers per month at Sessions’ storefront, with an average of 995+customers per day. All cannabis and cannabis products Sessions sell will be sold in full compliance with the State and local regulations. Furthermore, Sessions will train Sessions’ employees to only sell amounts of cannabis products as authorized by state regulations, and Sessions’ POS system, LeafLogix, will also deny sales in excess of state rules. All sales of cannabis and cannabis products will take place within the retail area of the premises.9 D. ESTIMATED NUMBER OF CUSTOMERS The retail component of the operation is the primary revenue and profit generator. All other features of the enterprise function in support of Sessions’ retail sales. Based on Sessions’ familiarity with the market and the proposed business concept, Sessions can comfortably expect to serve over 30,000 customers per month through Sessions’ storefront and delivery operation, with an average of 995+ customers served per day during the first year, to over 2000 per day by year three. The facility will be designed to create a first-in-class experience tailored to the rapidly growing adult-use consumer market of residents in San Diego and its 35 million annual visitors. It will be a brick & mortar store with a robust delivery apparatus. Due to Sessions’ rather central location geographically, freeway access, lack of competition in the area, and the overall delivery culture of the modern consumer, delivery sales will be a major contributor to Sessions’ revenue stream. The proposed operations are within arms-reach of densely populated urban core areas such as Downtown San Diego, Central 9 Cal. Code Regs. tit 4 §15402(c) EXHIBIT B: Operating Procedures Page 290 of 623 San Diego, National City, and Chula Vista. There are also major developments underway driving future growth potential via National City’s development plan, including its Marina District, the Seaport San Diego Redevelopment Plan, and the Chula Vista Bayfront Project. E. PROPOSED PRODUCT LINE Sessions’ overarching goal for Sessions’ Storefront Retail is to make the best possible products available to Sessions’ customers. To achieve this goal, Sessions carefully monitors cannabis sales trends around California, not only to optimize Sessions’ selection but also to tailor it to each market in which Sessions operates. Sessions’ owners previous dispensary operation in San Ysidro & La Mesa exhibits market dynamics similar to what Sessions expects in National City. By utilizing the San Ysidro & La Mesa insights, Sessions can reliably procure starting inventory brands and products that ought to be successful in National City. Sessions’ POS system provides tremendously valuable datasets that help Sessions measure the success of day-to-day sales operations, promotions, and pricing. Sessions can analyze consumer buying habits such as average spending and high/low performing categories, products, and brands. Further, Sessions will integrate our POS system with BDS Analytics, a cannabis data aggregator that analyzes Sessions’ sales data against regional and national market sets extracted through their network of several hundred cannabis retailers, distributors, manufacturers, and cultivators—with a current retail sample size in California of around 27% of the market. BDS Analytics provides Sessions with comprehensive insights that facilitate increased revenues, competitive advantages, and inventory optimization strategies that drive profitability. As a cannabis retailer, Sessions carries cannabis, cannabis products, cannabis accessories, and branded merchandise for sale. These cannabis accessories may include any equipment, products, or materials of any kind which may assist Sessions’ customers in storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body. Sessions’ branded merchandise may include clothing, hats, pencils, pens, keychains, mugs, water bottles, beverage glasses, notepads, lanyards, cannabis accessories, or other types of merchandise approved by the Bureau with Sessions’ name or logo, but does not include items containing cannabis or any items that are considered food. Finally, Sessions will not purchase or offer for sale products containing alcohol or tobacco. Every cannabis product affects each customer differently, and each customer will have different preferences for consuming their cannabis. To best address the needs and desires of each customer, Sessions will offer a wide variety of different forms of cannabis at Sessions’ dispensary. Sessions will comprehensively train Sessions’ employees on the safe use, potential contraindications, and expected effects of each of Sessions’ product offerings. Through online chats via Sessions’ website, or phone and in-person consultations at the storefront, Sessions’ employees will provide each customer with individually tailored product advice and instructions for proper and safe use. Currently, Sessions anticipates offering the following products: Flower; Vaporizer Cartridges; Edibles and Beverages; Concentrates; and Capsules, Tinctures, Clones, Topicals and Accessories. This array of products will provide several distinct methods for adult-use consumption. To help customers distinguish between Sessions’ products, Sessions will work with producers and brands that provide clear labeling and instructions on their products, differentiating between product types and strains. EXHIBIT B: Operating Procedures Page 291 of 623 In line with California’s goal for a clean, sustainable, and socially just industry, Sessions plans to procure products primarily from small-scale and family-owned state-licensed cultivators (10,000 sq ft or less) and manufacturers. Sessions will give priority consideration to suppliers qualified as social equity enterprises, are minority or woman-owned, or that are located in census tracts with income levels below state averages. All cannabis goods will be received from a licensed distributor or licensed microbusiness authorized to engage in distribution.10 Sessions will also value producers offering natural and comparable-to-organic products. Sessions’ well-defined selection criteria will ensure that Sessions source Sessions’ products from local, deserving, sustainable and/or environmentally conscious cultivation centers and manufacturers. Sessions will give these producers and suppliers priority over other suppliers in contracting with Sessions’ dispensary, and will forge long-lasting, mutually beneficial relationships with these suppliers so that Sessions’ operation can become and remain one of the most trusted sources of high-quality products in National City and the state of California. Sessions will not only give these suppliers and products priority but will also reserve shelf space for these targeted products in Sessions’ dispensary, including for “OCal”-certified products, which will be the State’s comparable-to-organic standard, since USDA Organic Certification is not available to cannabis products at this time. By reserving space for California’s highest-caliber suppliers, Sessions keep potentially harmful products of off Sessions’ shelves, out of the hands of consumers, and out of Sessions’ supply chain. Most of Sessions’ proposed product offerings are described below, but Sessions will likely choose to continuously offer more products to provide the biggest and best selection for Sessions’ customers. Furthermore, to provide a value-add for Sessions’ customers and to stake Sessions’ place as a trusted and reliable dispensary in National City, Sessions will offer free delivery services for customers in Sessions’ delivery area, so that Sessions’ products will be more easily accessible to those who might not be able to travel to Sessions’ storefront in-person. Flower (Approximately 42% of Sales) Sessions will offer a variety of fresh flowers for Sessions’ customers. Available flowers will include numerous strains and several levels of potency, ranging from low strength with mild effects to high strength for immediate relief. Sessions will offer pristine, manicured, and clean cannabis flower in various quantities and product types such as pre-rolls and flower buds. Many customers choose combustion, or smoking, as their preferred method of administration because it is affordable, simple, and users can easily regulate the dose that they are consuming. The rapid onset of effects from combustion can make this an excellent delivery method for customers desiring immediate effects. Vape Cartridges (Approximately 30% of Sales) One of the most popular cannabis products offered at every dispensary in California are Vape Cartridges. Cannabis vape cartridges are convenient alternatives to cannabis flowers and edibles. A form of a cannabis concentrate, a formulated cannabis oil is loaded into a cartridge that attaches to an electronic battery. By pressing a button and inhaling on the device’s mouthpiece, a consistent measured dose of vaporized cannabis is delivered into the lungs and bloodstream. Vape cartridges are offered in a variety of strengths and formulas. The vapor from these devices has no lingering scent and visibly evaporates within a matter of seconds. Additionally, the vapor is gentler on the lungs than cannabis smoke, and more often preferred by consumers with Chronic Obtrusive Pulmonary Disease (COPD) related conditions or that desire minimal discomfort when inhaling cannabis. Perhaps one of the leading benefits realized by vape cartridges is convenience. The device is small, simple to use, and discreet. Discretion remains a major value point for cannabis consumers during a time where society is still progressing towards comfortable acceptance of adult cannabis use. Vaping is both comfortable for consumers, as well as general public. Sessions will carefully screen all of Sessions’ suppliers of 10 Cal. Code Regs. tit 4 §15046(a) EXHIBIT B: Operating Procedures Page 292 of 623 vaporization products and will only provide customers with the safest, highest-quality vaporizer pens and cartridges. Edibles & Beverages (Approximately 12% of Sales) Edibles are consumed orally and allow cannabinoids to enter the bloodstream after digestion in the stomach and absorption into the intestines. Edibles are a good option for customers who find other forms of administration unpleasant, want a healthier alternative to inhaling smoke, desire longer-lasting effects, or desire a more discreet method of using their cannabis. Sessions plans to make a large and diverse selection of cannabis- infused edibles available to customers of our Facility in California. Sales Associates are required to discuss safe edible consumption with consumers upon any purchase of an edible product. This ensures that the consumers are aware of the delayed onset of the effects due to the digestion process. Customers are advised of the ability to strategically dose by utilizing the serving recommendations associated with the product and given a solid understanding of strength levels and tolerance development. Sessions’ goal, at all of its previous storefronts, is always to have a better informed and satisfied customer with every transaction, and Sessions will bring this spirit of education to Sessions’ operation in National City. Concentrates (Approximately 10% of Sales) Cannabis extracts and concentrates come in an array of forms, each defined by its extraction and production processes with new types continuing to be developed as new technologies evolve. Essentially, the cannabis cannabinoids such as THC, CBD, its terpenes, flavonoids, etc. are extracted from the cannabis plant to provide consumption options free of chlorophyll or extra plant matter. The consumable product can be inserted into tinctures, vape cartridges, cooking oils, butter, or be offered in raw forms known as hash, wax, or oils. Additionally, the ability to isolate specific molecules allows for deliberate combinations and formulations designed for specific applications or effects. A leading benefit of concentrates is the rapid onset time and the ability to obtain a high more potent than consuming cannabis flowers. This is important for consumers that have built a tolerance to the effects of cannabis or that are seeking stronger relief due to more debilitating ailments. Concentrates have a higher bioavailability that increases the rate of absorption into the body. Capsules, Tinctures, Topicals, Clones & Accessories (approx. 6% of Sales) Tinctures allow easy measurement of dosage using a dropper, they are a great mode of administration for people who need a high level of control over dosage or who simply do not wish to use a high-potency product. Capsules, pills, and tablets offer an effective method for delivering activated cannabinoids in specific quantities and are easily consumable by any person capable of swallowing them. Topicals are popular amongst customers who desire localized relief, such as for muscle aches, pains, or soreness. Clones are individual starter plants that can only legally be sold to consumers through licensed cannabis retailers. We will offer an array of cannabis plant varieties for consumers wishing to personally cultivate cannabis at home in accordance with municipal home cultivation rules. All plants will be “immature” and within the parameters of § 15408 – e.g., not flowering and kept shorter and narrower than 18 inches. Sessions’ accessory offerings will include secure storage containers, grinders, vaporizers, vaporizer batteries, a variety of pipes, rolling papers, filters, and lighters. Sessions will carefully analyze customer demand and craft its offerings to be responsive to the market. F. DELIVERY PROCEDURES Sessions has developed its delivery plan and accompanying procedures in accordance with National City and California law and implementing best practices from Sessions’ successful delivery operations across. When making deliveries of cannabis goods to consumers, Sessions’ organization and employees will comply with all provisions of applicable state and local law. EXHIBIT B: Operating Procedures Page 293 of 623 Sessions’ customers can place orders on Sessions’ website and on third party websites (such as Weedmaps, Leafly, I Heart Jane, Dutchie, etc.), which are directly integrated with Sessions’ POS system, LeafLogix. Online orders will automatically populate in Sessions’ order queue to be filled as either a delivery or pickup (potentially with a requested time window). Customers can also call in to place orders and a sales associate will enter their purchase into the POS system. Sessions’ website will require purchasers to submit a photograph of their personal identification with their order. Sessions will also provide an email and phone number for customers to send their identification to so that Sessions can do a preliminary check before dispatching Sessions’ driver with the customer’s order. Sessions’ sales associate will acknowledge the order by sending an automated text (once confirmed that Sessions can fulfill the order as requested) or by calling the customer, if necessary. The order might be fulfilled by the dispensary or by the inventory of a driver out in the field. When the driver sets course for the customer’s location, another text notification is sent to the customer with the delivery driver’s estimated time of arrival. Once the delivery driver arrives at the delivery location, but before allowing an individual to receive a cannabis delivery, the driver will verify the customer’s identification card and age. The driver will inspect the purchaser’s ID to verify their identity and age and scan the ID with a mobile electronic reader to confirm that it is legitimate and valid. Acceptable forms of identification include: a document issued by a federal, state, county, or municipal government, or a political subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator's license, that contains the name, date of birth, height, gender, and photo of the person; a valid identification card issued to a member of the Armed Forces that includes the person’s name, date of birth, and photo; or, a valid passport issued by the United States or by a foreign government. The delivery driver may ask the purchaser to remove their hat/sunglasses or to provide additional identification if they are unsure the purchaser is indeed the person in question based upon the picture on their ID. If the purchaser’s ID is expired or Sessions’ employee is unable to verify the identity of the purchaser, they will kindly deny them their delivery and explain the importance of Sessions’ need to abide the ID verification requirements for their safety and the community’s safety. Given the size of the National City market and Sessions’ anticipated delivery zones, Sessions will initially use six vehicles and plan to ramp up operations over time. Sessions anticipates leasing at least six (6) Toyota Prius or Nissan Versa vehicles for regional deliveries. Sessions will look to the regional dealerships as part of Sessions’ National City First procurement policy. Sessions’ delivery vehicles will not advertise cannabis, Sessions’ business name, or have any marking or other indications on the exterior of the vehicle that may indicate that the vehicle is carrying cannabis goods for delivery. Transportation vehicles used for delivery of cannabis will be equipped with either a temporary or permanent GPS device that will identify the geographic location of the delivery vehicle and record a history of all locations traveled to by the delivery employee while engaged in delivery. The GPS device will remain active and inside of the delivery vehicle at all times during delivery, and Sessions will be able to identify the geographic location of all delivery vehicles at all times as well. Sessions will also document the history of all locations traveled to by Sessions’ Delivery Associates while engaged in delivery. Sessions will maintain all delivery information (including locations traveled to) for a minimum of 90 days and will make this information available to the Bureau upon request. Sessions will comply with all laws concerning tracking and tracing the movement of cannabis. Sessions will provide information to the Bureau related to the vehicle including its make, model, color, Vehicle Identification Number (“VIN”), license plate number, and Department of Motor Vehicles registration information as well as the identities of all persons who will deliver cannabis products within National City. Finally, Sessions will never deliver cannabis or cannabis products out of the state of California. Only Sessions employees will operate Sessions’ transportation vehicles, and Sessions will train all delivery employees on delivery security procedures geared at protecting their personal safety, the safety of the community, and on keeping products and cash secure. If a purchaser or third party begins to act in a threatening manner, the Sessions’ delivery associate will initiate de-escalation procedures, attempt to safely leave the EXHIBIT B: Operating Procedures Page 294 of 623 premises, and, if merited, contact 9-1-1 while initiating threat response procedures. They will contact the onsite manager and/or the Director of Security to report the incident as soon as safe to do so. When making deliveries and carrying cannabis or cannabis products, Sessions’ Delivery Associates will only travel in an enclosed motor vehicle, such as is described above, and Delivery Associates will never allow anyone who is not an employee of Sessions’ organization into the vehicle. Sessions will minimize cash in the vehicle by providing a mobile cashless ATM device, and delivery drivers will store all cash in a locking cash vault that is securely affixed to the vehicle. Whenever carrying cannabis goods for delivery, the cannabis goods will not be visible to the public, and will be locked in a fully enclosed box, container, or cage that is secured on the inside of the vehicle, which includes the trunk of the vehicle. No portion of the enclosed box, container, or cage will be comprised of any part of the body or trunk of the vehicle or trailer. Sessions will not leave cannabis goods (or cash) in an unattended vehicle, unless they are stored in their locked container, and the vehicle is locked and equipped with an active vehicle alarm system. Finally, all cannabis and cannabis products Sessions delivers will be delivered in full conformance with the State and local regulations. G. COMPLIANCE WITH STATE AND LOCAL LAWS As knowledgeable cannabis operators with decades of combined experience in the industry, Sessions’ team knows first-hand the importance of compliant and safe operations. Sessions will only work with California- licensed facilities in full conformance with state and local regulations. Utilizing LeafLogix as Sessions’ inventory tracking system, if approved by the City Manager, will guarantee all cannabis and cannabis products purchased or sold from Sessions’ facility originate from within the California regulated system. Sessions’ Inventory Control Manager and Director of Compliance will vet all potential cannabis suppliers. Sessions’ Inventory Control Manager will also utilize the state license search look up tools to confirm the licensee’s name and license status of the manufacturer or cultivator who grew or produced the cannabis good or distributed the cannabis good to the storefront. Further, all cannabis suppliers will be required to provide a digital copy of their valid, unexpired state and local licenses. Sessions will never procure products from outside of the regulated California cannabis system. In accordance with the National City Municipal Code, Sessions will verify that all customers are 21 years of age or older for the purchase of cannabis or cannabis products, unless they are medical patients 18 years of age or older who possesses a physician’s recommendation for cannabis medical use only.11 Access to Sessions’ Consumption Lounge will be limited to individuals who are at least 21 years of age. All individuals seeking access to the Retail Storefront must show their government-issued identification. These documents must also be shown at the point-of-sale station at the time of purchase. Entrances into Session’s Dispensary Sales Floor and Consumption Lounge will be locked at all times, with entry strictly controlled. Restrooms will also be locked at all times. A “buzz-in” electronic/mechanical entry system will be utilized to limit access to and entry to the retailer to separate it from the reception/lobby area.12 Sessions will only maintain the quantity of cannabis and cannabis products to meet the daily demand readily available for sale on-site in the Dispensary Sales Floor, Consumption Lounge and Delivery Operations.13 Additional product may be stored in a secured, locked area to which customers, vendors, and visitors will not have access.14 All restroom facilities will remain locked and under the control of management.15 Sessions will establish limited-access areas and permit only authorized individuals to enter the limited-access areas.16 Authorized individuals include individuals employed by Sessions as well as any outside vendors, 11 NCMC, c. 9.60.250(a) 12 NCMC, c. 9.60.250(b) 13 NCMC, c. 9.60.250(c) 14 NCMC, c. 9.60.250(c) 15 NCMC, c. 9.60.250(d) 16 NCMC, c. 9.60.250(e) EXHIBIT B: Operating Procedures Page 295 of 623 contractors, or other individuals conducting business that requires access to the limited access area. All individuals granted access to the limited access area will be at least 21 years of age, and if not employed by Sessions, will be escorted at all times by a Sessions employee.17 Sessions will maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs will be made available to the City Manager or their designee upon request. The operating hours of Session’s proposed Storefront Retailer, Consumption Lounge and Delivery Operations will be limited to the hours of 9:00 a.m. through 9:00 p.m., seven days a week.18 Sessions acknowledges that all provisions incorporated within Section 9.60.230(m) – the Security Requirements – are directly applicable to and binding on all commercial cannabis businesses, including all Store Front/Retail businesses and Sessions.19 Sessions will employ uniformed licensed security personnel to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities. Security personnel may be allowed to carry firearms if permitted by San Diego County Sheriff's Department and authorized by the Chief of Police. H. INVENTORY MANAGEMENT Sessions understands the importance of accurate recordkeeping as part of the safety, security, and operational efficiency of Sessions’ business. In addition to, and integrated with, the state-wide Metrc system used for track and trace procedures, Sessions will utilize LeafLogix as Sessions’ point-of-sale inventory tracking system to track and report on all aspects of Sessions’ business, such as cannabis tracking, inventory data, gross sales and other information deemed necessary by the City, which will be compatible with the City's record-keeping systems and will have the capability to produce historical transactional data, including gross sales for each month, with taxes to be paid (including employee withholdings) for review on an annual basis, or at reasonable request from a City official, that can be filed as a sworn statement of Sessions’ financial health. Sessions’ inventory system will maintain records and documentation of the present location, amounts, and descriptions of all cannabis and cannabis products until purchase as set forth in MAUCRSA and will also identify the source of all products (company name, location, license numbers etc.). Sessions’ Inventory Manager is responsible for the management of the facility’s records, including data entry, auditing, reporting, and procedural revisions. Sessions will maintain business records on the facility’s secure business management platforms (“BMPs”) and inventory records in the state’s tracking system. BMPs will consist of standard word processing software, spreadsheet software, and cloud-based digital document storage systems. Sessions will design all recordkeeping and inventory control systems and associated SOPs for compliance with state and local law and will amend them promptly to maintain compliance with updated rules and best practices. Sessions will be prepared to present all associated records to the City for Sessions’ annual inspection. Unless otherwise noted or required by California law or Bureau rules or request, Sessions will meet and exceed local requirements by maintaining all records for at least seven years and make them available to the City for immediate inspection upon request. Sessions will maintain records longer if necessary due to any pending criminal, civil, administrative investigation, or other legal proceeding for which the records may contain relevant information, or if otherwise instructed by the Bureau or law enforcement. If Sessions’ storefront closes due to insolvency, license revocation, bankruptcy, or for any other reason, Sessions will preserve all records for at least seven years, at Sessions’ expense, or longer if requested by the Bureau. Sessions will maintain for a minimum of 7 years a written accounting or ledger of all of Sessions’ cash, receipts, credit card transactions, reimbursements, and operational expenditures and costs in accordance with GAAP and standards typically applicable to business records, which Sessions will make available to the City during business hours for 17 NCMC, c. 9.60.250(e) 18 NCMC, c. 9.60.250(g) 19 NCMC, c. 9.60.250(h) EXHIBIT B: Operating Procedures Page 296 of 623 inspection. Sessions will also maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in Sessions’ National City business, as well as a separate register of all the officers, managers, employees, and agents currently employed or otherwise engaged with Sessions’ business, and Sessions will make such register available to the City upon request. Sessions will maintain all company records on internally linked, secure BMPs. Sessions will maintain physical records in a locking filing cabinet within the Executive Office within the restricted access area. The COO will set up and monitor BMPs on desktop computers located throughout Sessions’ proposed storefront. BMPs will maintain company records including: Financial records including, but not limited to, bank statements, sales invoices, receipts, tax records, and all records required by the California Department of Tax and Fee Administration (formerly Board of Equalization) under title 18, California Code of Regulations, sections 1698 and 4901; personnel records, including each employee’s full name, social security or individual tax payer identification number, date employment begins, and date of termination of employment if applicable; training records including, but not limited to, the content of the training provided and the names of the employees that received the training; contracts with other licensees regarding commercial cannabis activity; permits, licenses, and other local authorizations to conduct Sessions’ cannabis activity; security records; records relating to the composting or destruction of cannabis goods; documentation for data or information entered into the track and trace system; and, all other documents prepared or executed by any of Sessions’ owners, employees, or assignees in connection with Sessions’ business. All of Sessions’ records will be legible and stored protected from debris, moisture, contamination, hazardous waste, fire, and theft. Sessions’ Inventory Manager will be in charge of monitoring inventory and guaranteeing that all inventory records accurately reflect actual inventory levels at Sessions’ facility. Inventory records will include electronic records of all cannabis inventory at the storefront, information on recalls and returns, records of waste disposal activities, and records of all non-cannabis inventory. Sessions developed inventory control provisions for its proposed dispensary in compliance with California and National City law and using best practices from Sessions’ other dispensary operations. Sessions has the benefit of being able to launch a tested and effective inventory tracking system immediately upon commencement of operations. Sessions will provide information regarding Sessions’ tracking and tracing of cannabis to National City at the same time as Sessions does to the Bureau. Furthermore, Sessions will identify the number and type of delivery vehicles Sessions use to transport cannabis and will provide this information to the City. Sessions will use LeafLogix to monitor Sessions’ cannabis inventory records, which seamlessly integrates with the state’s Metrc tracking system. Sessions will use a barcoding inventory control system to track batch, strain, and amounts of cannabis in inventory and to track amounts of cannabis sold to customers. Sessions’ manager on duty will conduct daily inventory reconciliations to verify that physical inventory matches electronic inventory records. Per state law, Sessions will retain all inventory documentation in a secure locked location at Sessions’ facility for a period of at least seven years from the date on the document. 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Sessions will ensure that the design of the system confines emissions to the area where they are generated. HEPA filters will clean the air by removing dust and other allergens, such as mold, which may cause adverse health effects. These filters will be placed at both intake and outtake of the HVAC system, as well as throughout the Facility to create a tri-phase filtration system that keeps the air clean and the employees and customers safe. Carbon filters will be utilized to filter out smoke, fumes, and other chemicals that HEPA filters miss. The company will equip these carbon filters in sequence with HEPA filters to maximize efficiency, or if available, will comply with the design recommendations of the installing company. Both HEPA filters and carbon filters are considered necessary for improved air quality across many different industries, and the cannabis industry is no different. The company will utilize both filters, along with any recommended or required additions by the installing company, Department, or local regulators, in order to maximize air quality and prevent harmful or noxious emissions within and from the Facility. Odor will be further mitigated with biophilic design, which is inspired by the love of life in nature. Natural elements will be integrated of local flora and plant life into the modern, vernacular environment to spark the inherent human inclination to convene with nature. Upon entering the lounge facility, the customers will note the filtered and temperature-controlled air that encourages deep centering breaths that help release the stress of the outside world. By consciously altering the store’s atmosphere through design, layout, natural elements, lighting, temperature, and cleanliness, an environment will be created that increases air quality and decrease odor and airborne toxins. Describe how the retail store shall adopt procedures to ensure that its customers may only gain access to the lounge once they have purchased cannabis products from the retail store. Generally, no person will be allowed into any portion of the Facility unless they are an employee, age-verified customer, vendor or contractor of Sessions, or an employee of an agency having jurisdiction to monitor or investigate the terms of regulatory compliance. As customers seeking to patron the Consumption Lounge must purchase product on-site, multiple verifications of identification will occur. Sessions will maintain a dedicated and sufficient staff during operating hours to verify the identity and age of all patrons seeking admittance to the lounge.5 This will ensure no individuals under age 21 are ever permitted into the Consumption Lounge. Sessions will accept the following forms of identification as stated in current California regulations §15404: •A document issues by a federal, state, county, or municipal government, or a political subdivision or agency, including a valid motor vehicle operator’s license, that contains the name, date of birth, height, gender, and photo of the person. •A valid identification card issued to a member of the Armed Forces that includes the person’s name, date of birth, and photo. •A valid passport issued by the United States or by a foreign government. Customers will enter the Facility through a lobby where a trained employee will scan the identification. Once the license has been verified the customer will enter the retail space and be greeted by a staff member to be educated about available cannabis products and complete a purchase, as allowable within the daily limits set forth in §15409 of California regulations. If a customer would like to proceed to the Consumption Lounge after making their purchase, they will be escorted to the lounge entrance where a reception staff member will again verify their identification and 5 NCMC, c. 9.60.265(e) EXHIBIT B: Operating Procedures Page 300 of 623 that the purchase receipt matches the cannabis goods in their possession. Customers may only gain access to the Consumption Lounge once they have purchased a cannabis product or products from the Dispensary Sales Floor.6 A staff member will provide the customer an explanation of the facilities, behavior and etiquette expectations, and support resources available within the lounge. They will be asked to sign the customer acknowledgement (more below), and provided information on alternative transportation options if needed. The customer will then be permitted to enjoy the Consumption Lounge facilities comfortably knowing that all patrons in the Facility are informed and able to access support from the team if at all needed. Describe how the business will use a state licensed security guard on duty during operating hours of the lounge. Sessions places the safety and security of patrons as its number one priority. The Consumption Lounge will have designated employees within the lounge facilities at all times observing and tending to customers during all hours of operation. A manager will be available for all shifts to assist with any issues or complaints related to the consumption area. Cannabis consumption will never be visible from any public place. While guards will be trained to be pleasant and lend to the enjoyable experience of the company’s facilities, it will be important to establish an environment that ensures compliance with the privileges associated with use of the lounge and respect for the neighborhood and National City. Security guards will patrol the consumption facilities to establish presence and serve as a deterrent to any intentional or negligent non-compliant activity by customers. The manager and staff within the lounge will be equipped with earpiece two-way radios to facilitate communication with guards as needed. Security Guards will also monitor the parking areas and immediate exterior of the Facility. A designated security room will house surveillance monitoring equipment to oversee activity occurring in all areas of the Facility. A guard or guard supervisor will be designated to monitor activity within the Consumption Lounge areas, and they shall be in constant communication with guards as the engage with patrons or patrol the facilities. Guards will assist in the enforcement of rules and regulations within the lounge. They shall assist staff to ensure that customers may only enter the Consumption Lounge facilities after purchasing cannabis goods from the retail storefront. They will be training in de-escalation tactics to ensure an enjoyable experience by all patrons in the lounge. They will be trained in identifying intoxicated or problematic customers that may pose hazards to themselves, customers, including possible drugged driving risks for the general public. A full explanation of security guard training and protocols can be found in the security plan. Under the direction of the Director of Security, Sessions will hire or contract for the Facility’s security personnel to provide twenty-four (24) hour security services for Sessions Facility. All security personnel hired or contracted for by Sessions will be properly licensed by the state of California.7 Sessions will enter a contract with Eagle Point Security, a private patrol operator, to furnish Security Guards to secure and protect the Facility as authorized by the National City Chief of Police or his or her designee(s). All contact information for the security company will be provided to the Chief of Police or his or her designee upon request. All security personnel must be at least 21 years of age and in full compliance with Chapters 11.4 and 11.5 of Division 3 of the California Business and Professions Code. Sessions will contract with a private patrol operator meets the minimum qualifications and licensing requirements for a private patrol operator, and operate in compliance with Article 4, Chapter 11.5, Division 3 of the California Business and Professions Code and all other applicable state and local laws and regulations. The private patrol operator must be appropriately licensed by the Bureau of Security and Investigative Services (“BSIS”) within the California Department of Consumer Affairs and must provide a verifiable copy of that license to Sessions before a contract for security services is signed. The private patrol operator must also be insured as required under California Business and Professions Code 7583.39 and 7583.40. All Security Guards will be employed and vetted by the private patrol operator. The private patrol operator is responsible for ensuring that all Security Guards who provide security services for Sessions are registered with the BSIS, complete mandatory training, and comply with all other requirements for 6 NCMC, c. 9.60.265(c) 7 NCMC, c. 9.60.265(f) EXHIBIT B: Operating Procedures Page 301 of 623 security guards as described in Article 4, Chapter 11.5, Division 3 of the California Business and Professions Code and all other applicable state and local laws and regulations. Security Guards will be responsible for limiting access to the Sales Floor and Consumption Lounge, and all limited access areas of the Facility, monitoring the surrounding property for security threats, monitoring electronic security systems, securing access points, providing immediate on-site response in the event of a security threat, and ensuring patrons immediately leave the site and do not consume cannabis in the vicinity of the Facility, on the property or the parking areas, among other tasks. If a Security Guard identified any suspicious activity outside the Facility, law enforcement will be contacted immediately, and the Facility will be put on lockdown. The Facility will maintain adequate staff and contracted security agents to ensure the safety of employees and visitors and assist with discouraging theft, trespass, or other security concerns. Identify how the business will establish a parking plan, ventilation plan, anti-drugged driving plan, employee and customer education training, design plan and set hours of operation. Sessions has assembled an experienced team with years of combined experience operating businesses in highly regulated industries, including cannabis businesses and casinos. Through their experience owning and operating the Sycuan Casino Resort, the ownership team knows how to work with government officials at the federal, state, and local level to operate in full compliance with the law. The ownership team also has a wealth of cannabis industry experience that they can leverage to hit the ground running with tried and tested operational policies and procedures. All operational plans, including parking plans, ventilation plans, anti-drugged driving plans, design plans, and planned hours of operation will be designed to meet National City’s conditions for approval.8 The company will proactively seek input from the surrounding community by reaching out to neighboring businesses and local government officials to mitigate any concerns. Parking Plan The company has established a parking plan to ensure minimal impact to the neighbors of the business and safety for customers. The Facility will have ample parking so customers will not intrude on parking associated with other neighboring businesses. A Dispensary Manager and Security Guards will be responsible for ensuring that parking areas are kept free for customers and visitors only. No loitering or parking in the parking or pedestrian areas by anyone who is not a customer or visitor of the storefront will be permitted. Hours and employee conduct protocols will continually be updated to maintain compliance with any and all state and local laws or regulations and address any concerns expressed by the public. To proactively prevent pedestrian traffic buildup such that it might be considered a nuisance by the community, the protocols are designed and organized to facilitate efficient customer flow, with a pedestrian queue area located inside the Facility. This will prevent long lines of pedestrians forming outside of the Retail Storefront, which may contribute to noise and pedestrian traffic in the neighborhood. In addition, the parking lot will have visible surveillance equipment, and signage of sufficient size, lettering, and prominence to advise customers that the consumption of cannabis products on the sidewalk or in other areas adjacent to the Premises is prohibited, that the Parking Lot is Under Video Surveillance, that a No-Loitering Policy is in place and shall be enforced, and reminders regarding the risks of drugged driving with options for alternative transportation. The company will have designated rideshare pickup/drop-off location to encourage use of services like Uber and Lyft while also ensuring traffic and parking lot ingresses/egresses are not blocked during loading or unloading. The company will also ensure that parking for Sessions is delineated separately from the parking facilities of the neighboring Best Western Hotel and Restaurants next door so as to not impact parking availability for their patrons. 8 NCMC, c. 9.60.265(g) EXHIBIT B: Operating Procedures Page 302 of 623 Good Neighbor Policy All customers will be required to review and sign a Good Neighbor Policy Agreement in which they certify that they understand that the ability to utilize Sessions’ store and lounge is contingent on respect for the surrounding neighborhood. Public consumption, littering, loitering, disturbance of the peace, and other nuisance behaviors are not tolerated and practicing them will eliminate the opportunity for future store visits. Ventilation Plan The Ventilation Plan and odor control systems detailed in Section B have been tested at multiple currently operating cannabis retail storefronts in California. The dedicated ownership team has already implemented similar plans at two retail storefronts in the San Diego area and can confirm that the Ventilation Plan is tested and reliable. By implementing the same systems and standards that have already proven effective, the business can guarantee the quality of air and emissions are such that it will never negatively impact the surrounding businesses, customers, or employees. Anti-Drugged Driving Plan The safety of customers visiting Sessions is of the utmost importance. It is crucial to have a safety plan in place for patrons should they find themselves needing assistance getting to their next destination. The team has established protocols to address anti-drugged driving. The plan will include education by staff at the point of product purchase on the importance of safe driving, a protocol to secure alternative transportation for any patron who is unable to drive safely, and information fliers in the restrooms informing patrons of the availability of alternative transportation if necessary. Consumption lounge staff will be trained to recognize signs of impairment and will strongly encourage any customers who appear to be impaired to take alternative transportation. If the Facility is closing, security staff will wait outside with any customers who are still waiting for their alternative transportation to arrive. Sessions will also offer overnight parking free of charge to allow customers to leave their vehicles if they do not feel safe driving home. As mentioned in the Parking Plan, Sessions will have designated rideshare pickup/drop-off location to encourage use of services like Uber and Lyft. This plan will help ensure patrons are able to enjoy their time at Sessions, while also knowing they can get home safely. Security guards will ensure no customers are allowed entry to the Consumption Lounge if they are demonstrating significant signs of intoxication upon arrival to the establishment. If an employee is concerned about the intoxication or impairment of a customer, they will bring the interaction to a close and alert the manager on duty immediately. If the customer becomes agitated, resistant, or aggressive the on-site security guard and the manager-on- duty will step in to bring the interaction to a close and assist the person off the premises. The security guard will inform any customer demonstrating visible signs of intoxication that they will no longer be able to consume on-site and urged to use alternative transportation. If, after strong urging, he or she still refuses, a reasonable attempt should be made to inhibit the customer from driving. Sessions will place signage and notices throughout all areas of the Facility of sufficient size, lettering, and prominence to advise customers regarding the risks of drugged driving and with resources for alternative transportation options. The company will also provide educational pamphlets regarding production information, understanding product labels and test result information, dosage guidelines, understanding tolerance, and resources for drug-abuse support. Material will also be available on the website and provided to patrons shopping in the retail storefront or utilizing a delivery service. Sessions will design and implement a consumer-focused safe driving campaign similarly based on the Drive High, Get a DUI campaign created by the National Highway traffic and Safety Administration. Sessions will utilize their material and create its own material and strategies specific to Sessions’ facilities and communities to enhance its effectiveness in protecting public health and safety. Sessions will create Public Service Announcement commercials and signage that will be placed throughout the Facility to highlight real world EXHIBIT B: Operating Procedures Page 303 of 623 consequences of driving under the influence. Considering the tremendous importance of safe driving, and the newness of Consumption Lounges for customers, the industry, and the general public, Sessions will incentivize and encourage product vendors to participate in Sessions’ campaign and messaging strategies. This will result in compounding effectiveness as Sessions communicates new educational material, research, statistical insights designed to mitigate drugged driving. Sessions will regularly monitor and evaluate the effectiveness of its plan. As new research and regulations are developed, Sessions will update its policies and protocols. Sessions will use government resources such as https://www.trafficsafetymarketing.gov/get-materials/drug-impaired-driving/drive-high-get-dui. Staff will be given annual training related to the drugged driving plan and public safety initiatives as part their employment. Employee and Customer Education Training Plans All customers entering the Dispensary will be educated by staff members on the effects various cannabis products can have on the body and the potency of the products available using a language that's relatable to new and experienced consumers. These objective, descriptive explanations include levels of THC and cannabidiol CBD present, expressed in absolute terms (milligrams) and relative terms (as a percent of the total chemical profile); relative ratios of THC to CBD; the presence or absence of various terpenes; and absorption time. Staff will be trained to speak in both objective and subjective terms about the commonly experienced effects of various products to provide customers the most complete picture possible. Further, we provide regular workshops and participate in third-party trade shows for numerous topics, including Understanding Cannabis Law, Cannabis 101: Methods of Consumption, The Cannabinoids and Your Health, Cannabis Plant Biology, Side Effects of Cannabis and Risks of Synthetic Cannabinoids. In cases where consumers request more direct support and information, our sales associates are available to interface directly with consumers and, as needed, direct them towards health care professionals and outside educational resources. Finally, our first-time visitor protocols are extensive and layered with a customer acknowledgement of our general Rules and Regulations. This policy ensures that visitors are advised of several requisites that will insure they are safely abiding by applicable laws and corporate policies that protect public health & safety. In particular, prohibition of public consumption, expected behavior for creating a safe and friendly environment for our customers, no loitering, required government issued identification when visiting, non-diversion to youth and resale of products, impaired driving, and more. Consumption Lounge staff will be specifically trained in hospitality in addition to cannabis-specific training. Employees will receive training specific to the various events being held, cannabis consumption, food handler and beverage training, and reducing the risks of smoke inhalation. Consumption Lounge employees will be adequately trained to handle all types of customer-service situations, including de-escalation techniques for situations involving potential conflict. A manager will be available for all shifts to assist with any issues or complaints related to the consumption area. As previously mentioned, Consumption Lounge employees will also be trained to recognize signs of impairment and will strongly encourage any customers who appear to be impaired to take alternative transportation. Customers will also be encouraged to ask Consumption Lounge staff any questions that they might have to ensure that customers are informed on the products they have purchased and are consuming. The lounge employees will be able to address concerns or questions about the “high” the user in the lounge may be experiencing. Staff will also be trained on all applicable city and state regulations regarding smoking regulations and ensure that cannabis consumption is never visible from a public place and all customers abide with the rules when enjoying the Consumption Lounge. Well-trained and well-educated employees are the cornerstone of the business. Shockingly, scientific studies have found that only, “Fifty-five percent of storefront staff reported some formal training for their position, with 20% reporting medical/scientific training,” Haug et. al., Training and Practices of Cannabis Storefront Staff, Cannabis and Cannabinoid Research, Vol. 1.1, 2016. Sessions has established a robust ongoing employee training program which has been tested and improved though the team’s existing operations to advance its employees ability to serve customers. The comprehensive training program will guarantee that all staff fully understand company policies and EXHIBIT B: Operating Procedures Page 304 of 623 procedures, applicable state and local laws, how to advise customers on the safe consumption of cannabis, and the company’s expectations regarding ethical and professional conduct. The employee training plan will utilize tools like Teachable. Teachable is a modern Learning Management System (LMS) that integrates with Sessions corporate Intranet, allowing dissemination of educational material, questionnaires and surveys in a manner that allows information to be captured and analyzed with macro-level staff engagement, knowledge levels, development goals/trends, and more. These datasets are utilized to develop and enhance new and existing training strategies to maximize the personnel value while building loyalty and appreciation that results in operational efficiencies and growth. Through Teachable, Sessions can develop quizzes that reinforce learning, summarize essential information, gather learner feedback, monitor progress, and issue completion certificates. Mandatory and volunteer training records for each employee is utilized during performance evaluations, lateral job transfers, and growth opportunities to assess competencies and structure meaningful rewards and attributions. Employees will complete initial onboarding training prior to beginning work, with both mandatory and optional continuing education opportunities providing updates and refreshers as needed. Onboarding training will be provided by GreenFlower Media. Their Dispensary Associate Certificate program is a professional credential program developed by cannabis industry leaders to provide dispensary employees with the preparation they need to start their careers. GreenFlower Media’s Dispensary Associate Certificate program encompasses the following topics: •Proper Cannabis Handling Best Practices.•Health, Safety, & Compliance Procedures. •Personal Best Practices.•Optimizing the Customer Experience. •Rigorous Knowledge of Cannabis Products & Delivery Methods. •Increasing Sales Through Quality Service & Patient Care Standards. •Compliance & Operational Excellence in Cannabis Retail & Distribution. The HR Director will ensure that all employees are provided with the policies and procedures covered in the onboarding training. The HR Director is responsible for maintaining records of employee training in Teachable, copies of signed employee handbooks, training materials, and certificates of completion. Design Plans The team has designed the store based on its collective years of experience curating high-end customer experiences, such as the Sycuan Casino Resort. The casino resort features hundreds of gaming options, multiple restaurants, an elegant pool, large golf course, and rejuvenating spa. Sessions’ team will bring the same degree of luxury to the cannabis storefront and Consumption Lounge in National City. The company’s goal is to create a retail experience that customers seek out for its unique, welcoming interior and friendly, helpful employees. The lounge is intended to feel spacious and calming, while simultaneously chic and stylish. All features of the building will be designed to improve mood and reduce stress for customers and employees, but also increase purchase probability and satisfaction. The Consumption Lounge portion of the building, a sectioned off area of the first and second floor, will contain features associated with high end resort style venues. It will be modern, trendy, and innovative, allowing customers to enjoy themselves in a relaxing setting that stimulates positive energy, conversation, and decadence. Community is at the center of the vision for the lounge. There will be comfortable seated areas for customers to consume cannabis products while enjoying primetime sporting events, music, or entertainment. Sessions aim to foster an inclusive environment for people to meet new people, make connections, and create unforgettable memories. There will not be any food sold at the Consumption Lounge, but the Facility will comply with all laws governing cannabis businesses and retail food establishments, including the California Retail Food Code and Article 8 of the EXHIBIT B: Operating Procedures Page 305 of 623 health code, where applicable.9 The Consumption Lounge will have restroom facilitates available for customers. Flooring inside the restroom will be constructed of a commercial grade material that is smooth, durable, nonabsorbent, and easy to clean. Walls will be constructed to be smooth, durable, nonabsorbent and easy to clean. All plumbing fixtures installed inside the restroom will be installed in compliance with applicable local plumbing ordinances. Handwashing facilities will be provided within all restrooms. Handwashing facilities will be equipped to provide warm water under pressure for a minimum of 15 seconds through a mixing valve or combination faucet. If the temperature of water provided to a handwashing sink is not readily adjustable at the faucet, the temperature of the water will be at least 100 degrees Fahrenheit, but not greater than 108 degrees Fahrenheit. In compliance with Proposition 65, Sessions will post the following notices at all clearly visible locations within the Consumption Lounge area: •Signage regarding the safe consumption of cannabis products. •Signage that states: “Detectable Amounts of Chemicals Known to the State of California to Cause Cancer, Birth Defects or Other Reproductive Harm May Be Found inside this Facility.” •Signage at each entrance and exit requesting patrons to respect residents of adjacent residential neighborhoods by reducing noise levels when leaving. Within our Consumption Lounge are we will feature art installations to educate customers and create viral online content with immersive and instagrammable exhibits that will rotate and evolve according to the growth of cannabis culture and consumer trends. The company will encourage third-party brands to participate in the development of specific exhibitions and sponsor the associated costs. The immersive experience will capitalize on the excitement and curiosity new patrons have when visiting a cannabis store for the first time. This is meant to be a memorable, unique experience for customers that will encourage them to return and recommend the business to their friends. The exhibit space will be a storytelling apparatus that envelopes and mesmerizes patrons as they learn about the captivating journey of the cannabis movement, its culture, and the role Sessions is playing in protecting the spirit of cannabis wellness and its efforts in remedying the social injustices of cannabis prohibition. In addition to the Retail Storefront and the Consumption Lounge, with its immersive exhibits, Sessions is also proud to feature a Social Equity Resource Center (SERC). The SERC will serve as a community resource and a hub for educational initiatives and goodwill campaigns by providing access to computers, meeting space, educational workshops, public information events, support group meetings, industry training/mentorship, and more. The authenticity of the company’s mission to improve the lives and well-being of customers, their families, and communities will be conveyed through the goodwill campaigns implemented and cultivated in the SERC. The SERC will set Sessions apart from other cannabis businesses that only seek to maximize their profits, whereas the SERC represents a tangible demonstration of Sessions’ commitment to improving equity in the industry. Hours of Operation In compliance with National City Municipal Code Section 9.60.050(G), the business will only be open to consumers from 9 am - 9 pm, seven days a week. The last sales within the lounge will be an hour before closing, at 8 pm. The company will never exceed the hours permitted by National City unless there are updates to the City Code. 9 NCMC, c. 9.60.265(d) EXHIBIT B: Operating Procedures Page 306 of 623 Identify how the lounge will take the appropriate steps to ensure they will only provide cannabis to an individual in an amount consistent with personal possession and use limits allowed by the state. As part of employee training, all staff will be directed to ensure that all sales are made in accordance with state and local regulations. In compliance with §15409, Sessions will never sell more than the following amounts to an adult- use cannabis consumers in a single day: 28.5 grams of non-concentrated cannabis; 8 grams of cannabis concentrate as defined in Business and Professions Code section 26001, including cannabis concentrate contained in cannabis products; and six immature cannabis plants. 10 Session will never sell more than the following amounts of cannabis to a single medical cannabis patient or to a patient’s primary caregiver in a single day: eight ounces of medicinal cannabis in the form of dried mature flowers (or the plant conversion as provided in Health and Safety Code section 11362.77); 12 immature cannabis plants. If a medical cannabis patient’s physician recommendation contains a different amount than the limits listed above, they may be allowed to purchase the amount consistent with their physician recommendation. The adult-use and medical purchase limits cannot be combined to allow a customer to purchase cannabis goods in excess of any of the limits. The company’s user-friendly cannabis Point of Sale System, Leaf Logix, automates compliance with purchase limits by providing employees with Purchase Limits Alerts if a customer cart exceeds allowable limits, and will prevent the transaction from completing. This Point of Sale System can track the aggregate purchases of a single customer to ensure they do not exceed the daily limit. Both Dispensary and Consumption Lounge staff will advise customers of the permissible sales limits to ensure customers are educated about purchase limits and compliance with state and local law. In addition, employees will pay close attention to customers who return to the Dispensary from the Consumption Lounge to make additional purchases, ensuring their subsequent purchases do not cause them to exceed their total daily legal limit. Generally, employees will be trained to encourage users to begin with small doses and to consume slowly and over an extended time period. Well-moderated consumption over a prolonged timeframe will slow the buildup of tolerance and help prevent customers from experiencing negative side effects. Staff will be trained to explain that the onset of effects can be delayed and to err on the side of caution when taking cannabis products, especially in edible form. For first-time users, staff will strongly recommend lower- potency products. Prior to dispensing any cannabis, an employee will provide customers with oral instructions for safe and proper consumption and will demonstrate how to safely and properly use products if a customer is unsure. The goal is to ensure that every customer leaves the store feeling educated about the products they have purchased. To do so, staff will be trained to complete the guided purchasing experience by asking follow-up questions such as, “Do you feel fully educated on the products you are purchasing?” and, “Is there anything I can explain to make you feel more comfortable about your purchase?” to help staff members gauge a successful and educational purchasing experience. Sessions is committed to assisting customers in using their products legally and responsibly. The Chief Compliance Officer will train the staff in applicable laws, including those governing personal use, and will update that training quarterly or due to changes in law. While it is the customer’s responsibility to follow California law, staff members will facilitate adherence to the law by explaining to customers—in clear terms—the laws which govern the personal use of the cannabis products sold at the Retail Storefront, including possession limits. This explanation will include both activities specifically allowed by law and activities specifically disallowed by law. Customers will also be provided with supplementary written materials explaining applicable laws. 10 NCMC, c. 9.60.265(h) EXHIBIT B: Operating Procedures Page 307 of 623 BUSINESS FORMATION DOCUMENTS PER CORRESPONDENCE WITH NATIONAL CITY REPRESENTATIVES, IT IS SESSIONS' UNDERSTANDING THAT THESE DOCUMENTS DO NOT CONTRIBUTE TO THE APPLICATION'S PAGE RESTRICTIONS. Sessions by the bay EXHIBIT B: Operating Procedures Page 308 of 623 Sessions Ventures LLC Business Formation Documentation Sessions Ventures LLC dba Sessions by the Bay (“Sessions”) hand-delivered its corporate entity filing to the California Secretary of State on Wednesday, March 30th at 1:40 p.m. PT. Evidence of that filing is attached. Sessions by the Bay is organized as a Limited Liability Company, and it has attached a copy of its Operating Agreement for review and as further evidence of its intended business formation. Upon request, Sessions will provide a Secretary of State-file-stamped copy of Articles of Incorporation or a Statement of Information. Per the email correspondence below, and the instructions provided by city staff Megan Gamwell, we have included the Operating Agreement within PDF File #4. EXHIBIT B: Operating Procedures Page 309 of 623 EXHIBIT B: Operating Procedures Page 310 of 623 SECTION C: SAFETY PLAN Introduction The safety and security of our staff, patrons, neighborhood, and the community are our highest priorities. Sessions Ventures LLC d/b/a Sessions by the Bay (“Sessions”) has significant experience operating safe cannabis facilities and implementing and maintaining safety programs and procedures. In this Safety Plan (“Plan”), we describe the measures that will be taken to prevent and suppress fire, and the features of the Retail and Consumption Lounge Facility (“Facility” or “Premises”), including fire extinguishers, evacuation routes and alarm systems, that will be in place at the Facility. This Safety Plan also discusses Sessions’ waste management handling and storage policies and our written and physical accident and incident reporting procedures in place for preventing and addressing employee safety. Sessions will provide our employees and other personnel with a clear plan to prevent loss of life and property by fire. Sessions’ Safety Plan will comply with all applicable fire prevention laws and regulations. Sessions will, at all times, operate in compliance with all applicable codes set forth in the City of National City’s (“City” or “National City”) Municipal Code, including, but not limited to building, plumbing, electrical, fire, hazardous materials and public health and safety. Sessions will comply with all laws and regulations applicable to the retail use, and will comply with all permit, license, approval, inspection, reporting and operational requirements of local, state or other agencies having jurisdiction over Sessions’ operation. Sessions will provide copies of other agency and department permits, licenses, or certificates to the City to serve as verification for such compliance. Sessions is owned and operated by Alex Scherer, Pearl Ayon, Chetan Abrol and members of the Sycuan Tribe which hosts multiple public service departments within their Reservation. The Sycuan Tribe boasts nearly 50 years of experience with fire, police force, and public safety and security departmental planning and management. Sycuan’s Fire Department The Sycuan Fire Department was founded in 1974 by Tribal Elder and Fire Chief Henry (Hank) Murphy. Before this establishment, the CA Department of Forestry and Fire Protection only provided wildfire suppression for six months during fire season – leaving the Tribe without emergency services for half the year. Seeing the importance and a greater need for a fire department on his reservation, he worked with the San Diego Office of Fire Service’s volunteer departments to train 14 Sycuan personnel to graduate as Fire Fighters and EMTs. These personnel returned to the Sycuan, Rincon, and Viejas Reservations to staff their fire engines. In 1989, Sycuan implemented an EMT ambulance service for the Reservation, as well as for adjacent non-Indian neighbors. In 1999, the Sycuan Fire Department was the first in East County San Diego to provide Advance Life Support (ALS/Paramedic) assessment engine to the community and its neighbors. Sycuan’s Police Department The Sycuan Tribal Police Department delivers professional policing services to Sycuan’s Reservation and Trust Lands. Although the police department is a full-service law enforcement agency, the department enjoys strong collaborative relationships with its law enforcement partners in the region and leverages those partnerships in an effort to provide robust and seamless services to all of Sycuans’ residents, visitors and employees. The police department also assists its law enforcement partners off of the Reservation when requested to do so. All of Sycuan’s police officers meet the minimum training requirements set forth by the California Commission of Peace Officer Standards and Training. All of Sycuan’s police officers must also attend the BIA’s Criminal Jurisdiction in Indian Country course prior to their designation as a “Special Deputy Officer.” EXHIBIT C: Safety & Security Plans Page 311 of 623 Section C.1: The detailed Safety Plan shall be prepared by a California professional fire prevention and suppression consultant. EXHIBIT C: Safety & Security Plans Page 312 of 623 Section C.2: This plan will describe all fire prevention and suppression measures, fire extinguisher locations, evacuation routes and alarm systems the facility will have in place. All employees, supervisors, and managers will follow the procedures outlined in this Plan to ensure that agents and customers are protected. The Chief Operations Manager is responsible for maintenance of equipment and systems installed to prevent or control ignitions of fires (ex. fire extinguishers, fire hoses, etc.). All agents will be trained on and are responsible for understanding the following Safe Code of Work Practices: • Flammables, including datasheets, books, rags, clothing, flammable liquids or trash shall not be placed or stored near heaters or their vents, any electrical appliance, or other potential sources of ignition. • Sources of actual or potential heat such as hot plates or electric coffee pots shall not be placed near flammable materials. Portable space heaters and candles are prohibited. • Care must be taken not to block potential escape routes, particularly with flammable materials. • Each individual is personally responsible for assuring that extension cords and multiple plugs are in good condition. Cords that are missing the grounding prong, are spliced together, or that are missing their protective sheath shall not be used. Additional fire control measures such as sprinkler systems, fire extinguishers and fire alarms systems will be installed or available in work areas. Each room within Sessions’ Facility will contain a smart smoke and carbon monoxide detector. Sessions intends to utilize a smart detector that features state-of-the-art sensors and will be fully integrated with an app that will allow real- time remote monitoring by local management. Fire Prevention and Suppression Measures Since there are no extraction, manufacturing, or processing operations to be conducted as part of the retail/delivery license, fire hazards, life safety hazards and inhalation issues/threats for this proposed retail/delivery sale and support areas are in line with typical retail operations. Cannabis inhalation hazards will not be a threat for the retail level (Level 1) as all cannabis related goods will be pre-packaged, no consumption will take place in this area, and a carbon filtration system with a negative pressure component will be installed. Since there are no extraction, manufacturing, or processing operations to be conducted as part of the consumption license, fire hazards and life safety hazards for the cannabis consumption and support areas on Level 2 are in line with typical retail operations and bars/tavern types of businesses. Cannabis smoke products will be a consideration for the consumption areas. Sessions will be installing a state of the art filtering and ventilation system to restrict the flow of odor across the facility as described in the following summary found in the “Business Plan”: Our Ventilation Plan will ensure the air circulation of the Facility does not negatively impact employee health and welfare, those surrounding the business and outdoor areas. We will protect the health and welfare of our employees and prevent negative effects on surrounding businesses and outdoor areas by operating a high-quality HVAC system, in conjunction with additional odor control measures. HEPA filters will clean the air in our Facility by removing dust and other allergens, such as mold, which may cause adverse health effects, especially for those who are sensitive. These filters will be placed at both intake and outtake of our HVAC system, as well as throughout the Facility to create a tri-phase filtration system that keeps the air clean and the employees and customers safe. Carbon filters will be utilized to filter out smoke, fumes, and other chemicals that HEPA filters miss. To adequately protect persons in our Facility and ensure our air is clean, we will equip these carbon filters in sequence with our HEPA filters to maximize efficiency, or if available, will comply with the design recommendations of the installing company. Both HEPA filters and carbon filters are considered necessary for improved air quality across many different industries, and the cannabis industry is no different. We will utilize both filters, along with any recommended or required additions by the installing company, Department, or local regulators, in order to maximize our air quality and prevent harmful or noxious emissions within and from our Facility. EXHIBIT C: Safety & Security Plans Page 313 of 623 Other than small amounts of typical cleaning products, there will be no hazardous materials located within the business premises. Typical cleaning products will be stored within a janitorial cabinet. Sessions’ fire prevention policies will include implementation of the following: • Maintenance of all required exiting, including signage. • Safe retail process operations, including proper inventory control, management and storage. • No smoking within the building, other than supervised smoking in the permitted consumption lounge space using non-open flame ignition devices. • Installation, staff training and regular maintenance of fire extinguishers. • Proper staff training, including emergency/medical response protocols. • Maintenance of security systems. • Maintenance of code complaint fire sprinkler and fire alarm systems. EXHIBIT C: Safety & Security Plans Page 314 of 623 Fire Sprinkler System There is currently an automatic wet fire sprinkler system installed throughout the building. Per the hydraulic nameplate on the existing riser, the system is designed to separate NFPA 13 compliant Ordinary Hazard Group 1 and Light Hazard areas within the existing building. The current hydraulic data nameplate is depicted in the adjacent photos. Neither of the two system design densities are adequate for the Mercantile (M) Retail occupancy and will require upgrading to an NFPA 13 compliant Ordinary Hazard Group 2 system basis of design. The existing systems will be required to be evaluated and recalculated for the proposed tenant improvement areas for both Levels 1 and 2 to confirm that the existing system can deliver the required design densities for the subject occupancies throughout the facility. If this engineering evaluation indicates upgrades will be required, upgraded tenant improvement fire sprinkler plans with hydraulic calculations will be required and system modifications are to be implemented prior to issuance of final certificate of occupancy by the National City Fire Department. The fire sprinkler system is to continue to be supervised and monitored through a UL listed central station facility through a fire alarm system as required per the 2019 CFC and City requirements. Sessions by the Bay will contract with a licensed C-16 contractor to complete inspections, testing and certification, according to NFPA 25 standards, as well as identify and repair any observed deficiencies. The contractor shall provide written inspection and test reports for the owner’s records as well as to the National City Fire Department. The fire sprinkler system is supplied by a dedicated 6” fire service and backflow prevention assembly located at the main entrance to the complex and indicated in Figure 1 of this report. A fire department connection serving the fire sprinkler system is located on the downstream side of the backflow assembly, also shown on Figures 1 and 1A. Fire Extinguishers Fire extinguishers will be located throughout our Facility, with as many available as is feasible for our space and as recommend by the local National City Fire Department. Extinguishers will be located in sealed boxes with glass-break tools available for easy access in case of emergency. All extinguishers will be regularly checked to ensure they are not expired, and a manager will replace extinguishers whenever necessary. The installation of five-pound 2A 10B:C multi-purpose dry chemical fire extinguishers will be in each of the following rooms: Retail Store, Level 1 •Lobby Area •Employee Breakroom •Secured Inventory Room •Dispensary Sales/Showroom •Vestibule •Security Office •Mechanical Room EXHIBIT C: Safety & Security Plans Page 315 of 623 • Consumption Lounge • Corridors as required per the CBC Consumption Lounge, Level 2 • Consumption Lounge Area • Open Office/Reception Area • Corridors as required per the CBC Placing our fire extinguishers in this way gives our agents the ability to respond quickly and effectively to any fire danger or emergency anywhere within our facility. Sessions is committed to the safety of our customers and agents and this fire extinguisher scheme will help us to respond effectively to fire danger and keep everyone in our facility out of harm’s way. Sessions by the Bay will contract with a local licensed contractor (preferably Fire Force Fire and Safety, INC., a National City operator) to provide fire extinguishers, extinguisher inspection, services and training, and inspection and testing reports on water-based suppression systems to be accessible online for one year following the inspection and available to the Police Department and National City Fire Department upon request. Sessions by the Bay will ensure that a licensed contractor conducts annual fire extinguisher inspections in accordance NFPA 10. Every six years, the vendor shall disassemble all facility fire extinguishers and thoroughly inspected for damage. The contractor shall assist the staff in providing comprehensive onsite training for all company employees to properly and safely use portable fire extinguishers. All security personnel will be trained, tested, and licensed to service and recharge portable fire extinguishers. Fire extinguisher locations are included in Figures 2A and 2B below. In addition, new fire alarm annunciator panels, fire alarm control panels, illuminated emergency exit signs and proposed Knox Box locations are also included in Figures 2A and 2B, with symbols corresponding to the adjacent legend: EXHIBIT C: Safety & Security Plans Page 316 of 623 Figure 2A: Life Safety Floor Plan, Level 1 EXHIBIT C: Safety & Security Plans Page 317 of 623 Figure 2B: Life Safety Floor Plan, Level 2 EXHIBIT C: Safety & Security Plans Page 318 of 623 Fire Evacuation Routes Sessions will ensure that emergency access and emergency evacuation plans are in compliance with state and local fire safety standards.1 The proposed exiting arrangement, travel distances, and paths of egress, shown in Figures 3A and 3Bbelow, are compliant with the included CBC occupancy requirements for this fire sprinklered building (see Architect’s Sheets A007 and A008 for enlarged views). The proposed floor plans include primary evacuation routes shown in directly out to the public way. No other means of egress modifications are necessary to meet CBC requirements as the proposed floor plans and exiting systems are currently configured. Multiple refuge areas for customers and employees are present immediately beyond the exterior exits as indicated in Figure 1. Access controlled interlocked doors may be installed for security purposes. This is permitted by the CBC, provided the provisions of CBC Chapter 10, section 1010.1.9.8 are met. We will require the installation of panic (fire exit) hardware at each of the exit doors to the exterior of the units. In addition, provide emergency exit hardware at all controlled access points to allow personnel exiting during an emergency condition. Hardware to be in compliance with Chapter 10 of the CBC. Means of egress cannot be compromised by required security features. Illuminated exit signs are to be located above all required exits per Chapter 10 of the CBC. Per CBC 1010.1.9, all egress doors will be readily openable from the egress side at all times, requiring only one operation to open the door, without the use of a key or special knowledge or effort, except in specific situations. In addition, controlled access will be arranged to meet the following provisions per the CBC to allow for free egress: a. The door hardware that is affixed to the door leaf has an obvious method of operation that is readily operated under all lighting conditions b. The door hardware is capable of being operated with one hand and does not require more than one operation for unlatching c. Operation of the door hardware directly interrupts the power to the electric lock and unlocks the door immediately d. Loss of power to the electric locking system automatically unlocks the door e. Operation of the panic hardware releases the lock f. The locking system units are listed in accordance with UL 294 The exit path from the occupied spaces in the rooms or through corridors will need to be a minimum unobstructed width of 36 inches where serving less than 50 occupants; the width increases to 44 inches if serving 50 or more occupants per CBC Table 1020.2. The aisles are required to meet these widths, and the aisle accessways (if not required to be accessible) are required to be at least 30 inches wide per CBC Section 1018.3 and 1018.4. The exit path is allowed to pass through intervening rooms that are accessory to one another, provided that the required width is met, and a discernable path of egress travel is provided per CBC 1016.2. The facilities will be provided with illuminated exit signs to facilitate egress. Emergency lighting will be provided for the means of egress in the facility to meet CBC Section 1008. The facilities will be provided with emergency access and emergency evacuation plans to meet state and local fire standards. The facilities will not employ any security devices that emit any medium such as smoke or fog that could obscure the means of egress in the building as prohibited per CFC Section 316.5. A complete CBC compliant occupancy evaluation and exiting plan will be required in order to confirm the final floor plan meets travel distance and exiting requirements. We recommend installing panic (fire exit) hardware at each of the exit doors to the exterior of the units. In addition, provide emergency exit hardware at all controlled access points to allow personnel exiting during an emergency condition. Hardware to be in compliance with Chapter 10 of the CBC. Means of egress cannot be compromised by required security features. Illuminated exit signs are to be located above all required exits per Chapter 10 of the CBC. 1 NCMC, c. 9.60.230(m)(18) EXHIBIT C: Safety & Security Plans Page 319 of 623 Level 1 Occupancy Summary & Exit Distance Table Level 2 Occupancy Summary & Exit Distance Table EXHIBIT C: Safety & Security Plans Page 320 of 623 Figure 3A : Egress/ Evacuation Plan, Level 1 EXHIBIT C: Safety & Security Plans Page 321 of 623 Figure 3B: Egress/ Evacuation Plan, Level 2 EXHIBIT C: Safety & Security Plans Page 322 of 623 Fire Suppression Equipment The Facility will also feature other fire suppression equipment, such as overhead sprinklers to prevent a fire from spreading from one room of our facility to another. Overhead sprinklers will be located in each room of the facility, spaced to cover the entire square footage of each room when spraying water. These systems will be regularly inspected and maintained by system professionals, and Sessions will keep a record of all updates and maintenance on these systems for at least five (5) years. Agents will be thoroughly trained on the location and use of all fire extinguishers and fire suppression technology. Sessions will maintain detailed standard operating procedures for the execution of all operations designed to mitigate the risk of fire hazards. If the threat of fire becomes imminent, the Facility will be fully equipped with the measures described below designed to prevent the spread of and suppress fire. In addition to preventing the rapid spread of fire hazards within the Facility, these measures will allow for the immediate alert of a fire hazard to ensure the safe evacuation of agents Facility HVAC System Sessions’ heating, ventilation, cooling and air filtration system (HVAC) will be installed by a licensed professional and receive routine maintenance, as needed, to ensure proper functioning of all environmental controls installed throughout the facility. Sessions will ensure there is an air system that creates negative air pressure between Sessions’ interior and exterior so that the odors generated inside the Facility are not detectable on the outside. If routine inspections identify necessary upgrades or maintenance required on the HVAC system, Sessions will address improvements as soon as possible. The Facility will be equipped with a ventilation system to maintain air quality throughout and prevent any detectable odor of cannabis from outside the licensed Premises, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as Sessions. Fire Alarm Systems The current fire alarm system in the building is limited to the required fire sprinkler system monitoring and supervision and a few manual pull stations at selected exits. A full NFPA 72 compliant fire alarm system will be required throughout the buildings with corresponding sprinkler system monitoring, manual pull stations and occupant notification. In compliance with NFPA and CBC/CFC requirements, the system will be monitored through a UL listed central station facility and tested/maintained by a licensed contractor. The system will provide occupant evacuation notification in the event of a fire sprinkler activation or a manual pull station activation. Sessions’ Facility will meet and exceed all applicable state and local fire codes and ordinances, as well as National Fire Protection Association (NFPA) standards and guidelines. As mentioned above, Sessions’ owners have fifty (50) years of executive level experience managing, directing and operating in highly regulated industries. One of those being Sycuan Casino. Sycuan oversees and manages its own Tribal Police and Fire Departments. For their casinos they manage the in-house security patrol guards and surveillance systems. This storefront and consumption lounge will get all of the experience it portrays through its casino. The tribal police department has been in existence for approximately 35 years, however, it’s been operating within its current comprehensive law enforcement capacity for 16 years. The police department is one of only two tribal police departments within California with agreements in place for its officers to enforce both federal and state laws in additional to tribal law. All of Sycuan’s officers meet the CA Peace Officers Standards and Training (POST) requirements and attend in-service POST continued professions training with the sheriff’s department—40hrs every 24 months. The Sycuan Fire Department was founded and established on October 11, 1974. Sycuan is a full-time “All Risk” Advanced Life Support fire department. “All Risk” essentially means the Department responds to all types of Fires, EXHIBIT C: Safety & Security Plans Page 323 of 623 Medical Emergencies, Technical Rescues, Hazardous Materials and Fire Prevention Code Enforcement. Department members participate in a rigorous yearly training plan that covers the many types of emergencies encountered. All Fire personnel meet or exceed California State Fire Marshal Certification requirements. Sycuan Fire department is a member of The San Diego County “Central Zone” which consists of Sycuan Fire Department, Alpine Fire Protection District, Bonita-Sunnyside Fire Protection District, City of El Cajon Fire Department, City of La Mesa Fire Department, City of Lemon Grove Fire Department, City of Santee Fire Department, Lakeside Fire Protection District, San Miguel Fire Protection District, Viejas Fire Department and Barona Fire Protection District. Sycuan also has Mutual aid agreements with San Diego County Fire/ CALFIRE and participates in the California Fire Service and Rescue Emergency Mutual Aid System. The most important aspect of preventing fires and fire risks is knowledge and awareness, which will be accomplished by utilizing a developed fire prevention plan, extensive agents training, and clear identification of fire hazards. Sessions will implement fire prevention strategies in order to effectively prevent fire hazards from developing. In the world of fire prevention, the best defense is a rigorous offense. Innovative fire prevention strategies will provide procedures for all types of emergency fire situations that Sessions may reasonably expect to occur in the workplace. Sessions will be protected by a fire alarm system as required by Code and local ordinance. We hope to partner with Aztec Fire and Safety, a San Diego area operator, to provide any required shop drawings and permit submittals for revisions to the existing fire alarm system. Aztec Fire and Safety will also be utilized for the required inspection, testing and maintenance and monitoring of the fire alarm system. Alarm Monitoring The alarm system will be professionally monitored by a local monitoring company that is reliable and provides a fast alarm response. Sessions is committed to providing all employees with comprehensive training and takes seriously the value of employee empowerment and educational opportunities. With that in mind, Sessions has created robust training materials related directly to emergency response as safety and security of our team members is of the upmost importance. All agents will be trained on Sessions’ safety policies and procedures upon initial employment. A copy of our workplace safety and health communication policies and procedures will be made available to Sessions employees and kept on site in the office for ease of reference. Upon completion of training, the Director of Human Resources will document it in the Employee Training Log and their employment file. Upon request, Sessions will make available to the Department all information related to the alarm system, monitoring, and alarm activity.2 Fire Department Access The Facility will have signage showing its address that will be easily visible from the street and contrasting with the background of the building so the National City Fire Department can easily identify Sessions Facility address. New Knox boxes will be located adjacent to the main entrances or at locations approved by the National City Fire Department. Section C.3: Describe all accident and incident reporting procedures. As part of our Sessions’ commitment to the safety and security of our agents and visitors, Sessions has instituted accident and incident reporting procedures that reflect our team’s experience in operating legal cannabis businesses. Proper reporting procedures help to reduce future incidents by communicating effectively within our company, with local law enforcement agencies, and with the Department. Primarily, Sessions will facilitate reporting procedures by providing the National City Community Development Director and Chief of Police with the name, telephone number (both land line and mobile, if available) of a designated on-site agent or owner to whom emergency notice can be provided at any hour of the day. If an accident or incident ever occurs at our Facility, employees are required to immediately report the incident to their direct supervisor as a condition of continued employment. The supervisor will then notify the Director of 2 Cal. Code Regs. Tit 4 § 15047(c) EXHIBIT C: Safety & Security Plans Page 324 of 623 Security and Chief Operations Officer who will initiate investigation procedures, notify the appropriate emergency or law enforcement agency, and develop corrective measures. Appropriate reports will be produced and filed for every occurrence of an accident or incident involving fire, medical emergency, or hazardous situations. Emergency and law enforcement agency contact information will be posted throughout the facility. To file proper reports, the Chief Executive Officer and/or the Director of Security must compile evidence from the incident. If video surveillance exists regarding the accident or incident, it will be downloaded from our secure video surveillance storage facility to a portable hard drive/thumb drive and submitted to local emergency or law enforcement officials. Sessions will notify the Department and local law enforcement within twenty-four (24) hours of discovery of any of the following situations: • Company discovers a significant discrepancy in its inventory; • Company becomes aware of or has reason to suspect diversion, theft, loss, or any other criminal activity pertaining to the operations of the licensee; • Company becomes aware of or has reason to suspect diversion, theft, loss, or any other criminal activity by an agent or employee of the licensee pertaining to the operations of the licensee; • Company becomes aware of or has reason to suspect the loss or unauthorized alteration of records related to cannabis goods, customers, or the licensee's employees or agents; and • Company becomes aware of or has reason to suspect any other breach of security.3 Sessions will notify the Department in writing and include the date and time of occurrence of the theft, loss, or criminal activity, the name of the local law enforcement agency that was notified, and a description of the incident including, where applicable, the item(s) that were taken or lost.4 All accident and incident reports from receipt of the initial report through post-incident review, will be documented by the Director of Security. The Director of Security will ensure all events are recorded, assembling these records in preparation and performance of the post-incident review, and ensuring all records are preserved for review. The following must be included, at a minimum, in the Post-Incident Report: • A description of incident events with specific timelines. • Employee(s) involved. • Non-Employees involved. • Impact on affected parties. • Discussions, decisions, and assignments made. • Successful and unsuccessful activities. • Notifications required or recommended. • Steps taken for containment and resolution. • Recommendations for prevention and remediation (short-term and long-term). • Identification of policy and procedure gaps. • Results of post-incident review. Additionally, Sessions by the Bay has developed a Safety Program Manual that includes detailed accident and incident reporting procedures. These procedures have been developed for the safety of Sessions by the Bay’s staff, customers, patients, vendors and visitors. Incidents are considered any occurrence which could have resulted in an injury and accidents are considered any occurrence which resulted in an injury. 3 Cal. Code Regs. Tit 4 § 15036(a)(1-5). 4 Cal. Code Regs. Tit 4 § 15036 (b ). EXHIBIT C: Safety & Security Plans Page 325 of 623 The plan provides the basic administrative structures and procedures necessary to safely direct staff during the following emergency situations: •Emergency Evacuation •Medical Emergencies •Fire •Earthquake •Bomb Threat •Active Shooter •Utilities Outage •Disturbance/Riot •Plane Crash This Emergency Procedures Plan is a tool which will be distributed to all employees. This plan shall be reviewed annually and, if warranted, updated accordingly by Management. Any recommended changes should be directed to Managers. Emergencies or situations may occur which require the notification of key personnel to control the flow of information. The Emergency Communications Plan is designed to provide guidelines on how to coordinate internal operations and notification procedures with public information requirements being met in the event of an emergency. The goal is to provide a plan to notify all key personnel, as necessary, of incidents, circumstances, emergencies, etc., involving the building. Accurate, efficient notification will allow key decision makers to react accordingly as an emergency unfolds, and it allows them to organize all public information efforts, primarily via the news media. This plan focuses on internal and external notification of the following personnel: PRIMARY: •General Manager •National City Fire Department •National City Police Department •Emergency Coordinator on Duty •Sessions by the Bay Management •Safety Coordinators •Head of Security SECONDARY (IF APPLICABLE): •Staff, and Building Occupants •Public Agencies-Regulatory Agencies •News Media The following are examples in no order of possible events that would constitute an emergency. This is not a comprehensive list but a guideline for the types of events that could trigger the emergency communications plan. •Death or serious injury to any person on or around property •Criminal activity on property •Natural Disasters (earthquake, weather-related disasters, etc.) •Major disruption of services (power, water, etc.) •Fire •Building personnel involved in illegal activities •Labor unrest/demonstrations •Major equipment malfunction (roof problems, air conditioner, etc.) Following is an excerpt identifying incident notification procedures in the event of an emergency: PROCEDURES: In the event of an incident and/or emergency, the Emergency Coordinator on Duty shall be notified and will relay information to Management. Management will then choose who to contact on behalf of the company via the media throughout the duration of the incident and/or emergency. No other employee shall speak to the media without prior permission of Management. The General Manager will work with management to handle all information that goes through social media. EXHIBIT C: Safety & Security Plans Page 326 of 623