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Agenda Packet Document cc 8-16-16 #2
AGENDA OF A REGULAR MEETING - NATIONAL CITY CITY COUNCIL/ COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY 4,- CALIFORNIA - NATIONAL City `NCo$poRATBD RON MORRISON Mayor JERRY CANO Vice Mayor ALBERT MENDIVIL Councilmember MONA RIOS Councilmember ALEJANDRA SOTELO-SOLIS Councilmember 1243 National City Blvd. National City 619-336-4240 Meeting agendas and minutes available on web WWW.NATIONALCITYCA. GOV COUNCIL CHAMBERS CIVIC CENTER 1243 NATIONAL CITY BOULEVARD NATIONAL CITY, CALIFORNIA TUESDAY, AUGUST 16, 2016 - 6:00 PM ORDER OF BUSINESS: Public sessions of all Regular Meetings of the City Council / Community Development Commission - Housing Authority (hereafter referred to as Elected Body) begin at 6:00 p.m. on the first and third Tuesday of each month. Public Hearings begin at 6:00 p.m. unless otherwise noted. Closed Sessions begin at 5:00 p.m. or such other time as noted. If a workshop is scheduled, the subject and time of the workshop will appear on the agenda. The Mayor and Council members also sit as the Chairperson and Members of the Board of the Community Development Commission (CDC). REPORTS: All open session agenda items and reports as well as all documents and writings distributed to the Elected Body less than 72 hours prior to the meeting, are available for review at the entry to the Council Chambers. Regular Meetings of the Elected Body are webcast and archived on the City's website www.nationalcityca.gov. PUBLIC COMMENTS: Prior to the Business portion of the agenda, the Elected Body will receive public comments regarding any matters within the jurisdiction of the City and/or the Community Development Commission. Members of the public may also address any item on the agenda at the time the item is considered by the Elected Body. Persons who wish to address the Elected Body are requested to fill out a "Request to Speak" form available at the entrance to the City Council Chambers, and turn in the completed form to the City Clerk. The Mayor or Chairperson will separately call for testimony of those persons who have turned in a "Request to Speak" form. If you wish to speak, please step to the podium at the appropriate time and state your name and address (optional) for the record. The time limit established for public testimony is three minutes per speaker unless a different time limit is announced. Speakers are encouraged to be brief. The Mayor or Chairperson may limit the length of comments due to the number of persons wishing to speak or if comments become repetitious or irrelevant. WRITTEN AGENDA: With limited exceptions, the Elected Body may take action only upon items appearing on the written agenda. Items not appearing on the agenda must be brought back on a subsequent agenda unless they are of a demonstrated emergency or urgent nature, and the need to take action on such items arose after the agenda was posted. CONSENT CALENDAR: Consent calendar items involve matters which are of a routine or noncontroversial nature. All consent items are adopted by approval of a single motion by the City Council. Prior to such approval, any item may be removed from the consent portion of 1 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 2 the agenda and separately considered, upon request of a Councilmember, a staff member, or a member of the public. Upon request, this agenda can be made available in appropriate alternative formats to persons with a disability in compliance with the Americans with Disabilities Act. Please contact the City Clerk's Office at (619) 336-4228 to request a disability -related modification or accommodation. Notification 24-hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Spanish audio interpretation is provided during Elected Body Meetings. Audio headphones are available in the lobby at the beginning of the meeting. Audio interpretacion en espanol se proporciona durante sesiones del Consejo Municipal. Los audiofonos estan disponibles en el pasillo al principio de la junta. COUNCIL REQUESTS THAT ALL CELL PHONES AND PAGERS BE TURNED OFF DURING CITY COUNCIL MEETINGS. 2 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 3 OPEN TO THE PUBLIC A. CITY COUNCIL CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE TO THE FLAG PUBLIC COMMENTS (THREE -MINUTE TIME LIMIT) PROCLAMATIONS AWARDS AND RECOGNITIONS PRESENTATIONS 1. Recognition of outgoing Student Council Representative, Reah Sahagun and introduction of incoming Student Council Representative, Jose Estrada. (City Clerk) 2. Farewell to Miss National City and Court 2015, and Introduction of Miss National City and Court 2016. (Community Services) 3. Equinox Project's 2016 San Diego Regional Quality of Life Dashboard - Stephen Heverly, Senior Project Manager - Equinox Project 4. 6th Annual "Career Pathways to Success" Job Fair - Jacqueline Reynoso, President, National City Chamber of Commerce and Diane Rose, Executive Director, South County Career Center. INTERVIEWS / APPOINTMENTS CONSENT CALENDAR 5. Motion of the City Council of the City of National City approving the waiving of the reading of the text of the Ordinances considered at this meeting and providing that such Ordinances shall be introduced and/or adopted after a reading of the title only. (City Clerk) 6. Approval of the Minutes of the Adjourned Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City of August 2, 2016 and the Corrected Minutes of the Regular Meeting of the City Council and Community Development 3 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 4 Commission - Housing Authority of the City of National City of June 21, 2016. (City Clerk) 7. Resolution of the City Council of the City of National City waiving the bid process pursuant to NCMC 2.60.220(B) and (C) for the sole source purchase of five (5) ZOLL X Series Manual Monitor/Defibrillators with accessories from ZOLL Medical Corporation in the amount of $89,463.40 to be added to the $80,490.00 from the Regional Cooperative Care Program RCCP/AMR totaling $169,953.40. (Fire) 8. Resolution of the City Council of the City of National City ratifying the acceptance of $18,000 grant from the California Library Literacy Services (CLLS) to fund the Library's literacy services for FY2016-17; and authorizing the establishment of fund appropriations and a corresponding revenue budget. (Library) 9. Resolution of the City Council of the City of National City authorizing the installation of 40 feet of red curb "No Parking" along the west side of Euclid Avenue immediately north of the commercial driveway to National City Plaza Shopping Center, located at 2323 E. Division Street, to enhance visibility for drivers exiting the shopping center. (TSC No. 2016- 03) (Engineering/Public Works) 10. Resolution of the City Council of the City of National City authorizing the installation of a blue curb handicap parking space with sign in front of the residence at 624 E. 3rd Street (TSC No. 2016-05). (Engineering/Public Works) 11. Resolution of the City Council of the City of National City approving the Final Audit Report for the Morgan Square Business Improvement District for the period from January 1, 2008 through and including June 30, 2014. (Planning) 12. Warrant Register #1 for the period of 06/29/16 through 07/05/16 in the amount of $2,860,739.05. (Finance) 13. Warrant Register #2 for the period of 07/06/16 through 07/12/16 in the amount of $232,627.99. (Finance) 14. Warrant Register #3 for the period of 07/13/16 through 07/19/16 in the amount of $3,498,058.40. (Finance) PUBLIC HEARINGS 15. Public Hearing — Conditional Use Permit for beer and wine sales at Gama Produce located at 1605 East 4th Street. (Applicant: Susana Maza) (Case File 2015-28 CUP) (Planning) 4 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 5 16. Public Hearing conducted in accordance with California General Code Section 52201 to discuss and consider the findings of a Summary Report pertaining to the sale and conveyance of certain Real Property located in the City of National City with a street address of 1640 E. Plaza Blvd., (APN # 557-410-20), from the City of National City to Palm Plaza Associates, LLC pursuant to a Real Property Purchase and Sale Agreement and Joint Escrow Instructions. (Housing and Economic Development) ORDINANCES FOR INTRODUCTION ORDINANCES FOR ADOPTION NON CONSENT RESOLUTIONS 17. Resolution of the City Council of the City of National City accepting the findings made in the Summary Report pursuant to California General Code Section 52201 pertaining to the sale of a 1.07-acre parcel of vacant land located at 1640 East Plaza Blvd. in National City to Palm Plaza Associates, LLC and approving a Real Property Purchase and Sale Agreement and Joint Escrow Instructions for said vacant land. (Housing & Economic Development) 18. Resolution of the City Council of the City of National City reducing the property tax rate for the Library General Obligation Bonds for Fiscal Year 2017 from 0.92 cents per $100 of assessed valuation to 0.88 cents, a decrease of 4.55% (Finance) 19. Resolution of the City Council of the City of National City approving a Conditional Use Permit for a craft beer tasting room (Novo Brazil) at 27 & 41 East 8th Street. (Applicant: Joshua Renner) (Case File 2016-12 CUP (Planning) 20. Resolution of the City Council of the City of National City authorizing the execution of an Order of Vacation of 250 feet of A Avenue located south of East 28th Street and north of East 29th Street. (Applicant: Frank Motors) (Case File No. 2013-23 SC) (Planning) 21. Resolution of the City Council of the City of National City, 1) awarding a contract to Portillo Concrete, Inc. in the not -to -exceed amount of $2,496,925 for the Sewer Line Replacement and Upsizinq Project, CIP No. 16-05; 2) authorizing a 15% contingency in the amount of $374,538.75 for any unforeseen changes; 3) authorizing the Mayor to execute the contract; and 4) authorizing the appropriation of $1,500,000 in the Sewer Upsizinq CIP account from Sewer Service Fund balance. (Engineering/Public Works) 5 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 6 NEW BUSINESS 22. Temporary Use Permit — Pumpkin Station hosted by Pinery Christmas Trees, Inc. at Westfield Plaza Bonita Mall from September 23, 2016 thru October 31, 2016 with no waiver of fees. (Neighborhood Services) 23. City Council direction regarding parking options for El Toyon Park parking lot. (Engineering/Public Works) 24. City Council Policy #118 - City Council attendance at staff -level working groups. (City Manager) 25. City Council discussion of term limits for City Council members. (City Manager, City Clerk and City Attorney) **Continued from Council meeting of 6/21/16** B. COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY PUBLIC HEARINGS- HOUSING AUTHORITY CONSENT RESOLUTIONS- HOUSING AUTHORITY NON CONSENT RESOLUTIONS- HOUSING AUTHORITY NEW BUSINESS- HOUSING AUTHORITY C. REPORTS STAFF REPORTS MAYOR AND CITY COUNCIL CLOSED SESSION REPORT ADJOURNMENT Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City - Tuesday - September 6, 2016 - 6:00 p.m. - Council Chambers - National City, California. 6 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 7 The following page(s) contain the backup material for Agenda Item: Recognition of outgoing Student Council Representative, Reah Sahagun and introduction of incoming Student Council Representative, Jose Estrada. (City Clerk) 7 of 498 Item # 08/16/16 RECOGNITION OF OUTGOING STUDENT COUNCIL REPRESENTATIVE, REAH SAHAGUN AND INTRODUCTION OF INCOMING STUDENT COUNCIL REPRESENTATIVE, JOSE ESTRADA City Clerk 8 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 9 The following page(s) contain the backup material for Agenda Item: Farewell to Miss National City and Court 2015, and Introduction of Miss National City and Court 2016. (Community Services) 9 of 498 ITEM # 8/16/16 FAREWELL TO MISS NATIONAL CITY AND COURT 2015, AND INTRODUCTION OF MISS NATIONAL CITY AND COURT 2016 (COMMUNITY SERVICES) 10 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 11 The following page(s) contain the backup material for Agenda Item: Equinox Project's 2016 San Diego Regional Quality of Life Dashboard - Stephen Heverly, Senior Project Manager - Equinox Project 11 of 498 ITEM # 8-16-16 EQUINOX PROJECT'S 2016 SAN DIEGO REGIONAL QUALITY OF LIFE DASHBOARD STEPHEN HEVERLY, SENIOR PROJECT MANAGER - EQUINOX PROJECT 12 of 498 13 of 498 EQIJINOX' PROJECT Center for An initiative ofitta Sustainable Energy San Diego Regional Quality of life Dashboard National City City Council August 16, 2016 Stephen Heverly, Senior Project Manager ZA , I , Center for Sustainable Energy. 14 of 498 The New Equinox Project Center for Sustainable Energy Unites with Equinox Center Wednesday. January 27, 01 ii Newly formed Equinox Project will enhance and expand quality of life research and analysis CSE has announced a merger with the San Diego -based nonprofit Equinox Center. The union officially creates the Equinox Project, an initiative to be directed by CSE to enhance and expand the work of the former Equinox Center, which focused on environmental, economic and civic affairs in the region. EojjINO)E PROJECT An initiative oCenter for Sustainable Energy® Center for facebook.com/TheEquinoxProject 1_ sustainable Energy 15 of 498 What Gets Measured, Gets Managed Better The Equinox Project's principal publication, The San Diego Regional Quality of Life Dashboard presents a comprehensive view of environmental and economic indicators aimed at advancing development of intelligent policy in the region. What we do Why we do it -Protect our environment -Promote a strong economy -Enhance quality of life How we do it -Policy research -Outreach & advocacy -Civic engagement The San Diego Regional ELJ1NOX-'-PROJECT 1 (Silt i Sustainable Energy' #SDQoL Center Inr Sustainable Energy 16 of 498 4 Air Quality Unhealthy Air Quality Days 6 Border Region Cross -Border Economic and Environmental Metrics 8 10 12 14 �i Climate Change Climate Emissions, Action Planning and Sea Level Rise Economy Employment Metrics Economy Entrepreneurship Energy Renewable Energy 16 Energy Residential Electricity Consumption 18 Housing Housing Affordability 20 Land Use Park Access 22 Transportation Electric Vehicle sales and Infrastructure 24 n Transportation Transportation Choices 26 Transportation Vehicle Miles Traveled 28 30 32 gi �i Waste Landfill Waste Disposal Water Water Use Water Beach Closures and Advisories Improved > 1 % from the previous year Improved = from the previous_ year Worsened C1tn from the previous year Worsened > t4, from the previous year Neutral or no data from the orevious year ilk Center for Sustainable Energy 17 of 498 Key Findings Regional Topics • Economy • Renewable Energy Local National City Topics • Air Quality - Asthma • Land Use — Park Access • Electric Vehicles • Waste • Water Consumption Venture capital and new high-tech and life science startups boosted the economy in 2015, but wages are growing slowly. p.12 Molt 001414110111 elsokeehidaiadet agiokerafteowe davikomot dram Top -down drought restrictions and limits on water supplies allocated to the region slowed consumption of water p. 30 t «1 San Diego County continues to throw away the most trash compared to other major counties in California. p. 28 00 What's your key indicator? Connect with the Equinox Project social networks on Facebook and Twitter to let us know. 18 of 498 15 12 9 6 3 0 Unemployment Rate (Not seasonally adjusted, select counties vs. state & national averages, 2007-2015) 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dcita Sources: Equinox Project, 2016; U.S. Bureau of Labor Statistics, 2016 @EquinoxProje ••• California Los Angeles I Orange Sacramento gm San Diego San Francisco sow Santa Clara •-• United States facebook.com/TheEquinoxProject Center lur Sustainable Energy 19 of 498 Number of new installations 30,000 25,000 20,000 15,000 10,000 5,000 0 Growth in Distributed Solar Installations and Capacity (SDG&E Service Territory, 2005-2015) Installations — Capacity is ! 111110111111 2005 2006 2007 2008 2009 2010 2011 Data Sources: Equinox Project, 2016; California Solar Statistics, 2016 ►I 2012 2013 2014 #SDQoL 2015 Afkil Center for Sustainable Energy- 20 of 498 45 40 35 30 25 20 15 10 5 Renewable Energy as a Percentage of SDG&E Sales (2014) 50% Renewable Energy Portfolio CA 2030 Renewable SDG&E 2018 goal Portfolio Standard •• II PAIN —RN FINFS* �. hi/ o 2004 Data Sources: Equinox Project, 2016; San Diego Gas & Electric, 2015, California Public Utilities Commiss ion, 2015 FalartfAVNIPAW 111111111.1:111 mum MINIM 11511 • • • • • � • • 2006 2008 2010 2012 2014 • • • • • • 2016 2018 2020 2022 2024 2026 2028 2030 • • tip - mai - assv jos - Ans war Center for jfacebook.com/TheEquinoxProject r` Sustainable Energy 21 of 498 facebook. com/TheEquinoxProject Center for Sustainable Energy 22 of 498 Local Land Use 23 of 498 MIMI Local Electric Vehicles & Infrastructure Number of Electric Vehicles and Charging Sites per 10,000 capita (San Diego County jurisdictions, 2015) Carlsbad Chula Vista Coronado Del Mar El Cajon Encinitas Escondido Imperial Beach La Mesa Lemon Grove National City Oceanside Poway San Diego San Marcos Santee Solana Beach Vista 0 100 • Electric Vehicles per 10,000 capita 200 300 400 500 1_ 600 700 • Electric Vehicle Charging Sites per 10,000 capita Data Sources: Equinox Project, 2016; Clean Vehicle Rebate Project, 2076; US. Department of Energy, 2016; California Department of Finance, 2016 800 25 � irj facebook.com/TheEquinoxProject ' Sustainable Energy- 24 of 498 Daily Waste Disposal per Capita (San Diego County jurisdictions, 2013-2014) Carlsbad Chula Vista Coronado Del Mar El Cajon Encinitas Escondido Imperial Beach -0.14 La Mesa Lemon Grove -0.87 National City Oceanside -0.84 Poway San Diego San Diego -Unincorporated San Marcos -0.11 Santee Solana Beach Vista .0.07 iR3 +1.44 +0.83 +0.30 +0.27 +0.17 +0.07 608 r i 77 t.9r 3.70 +0.44 74 37+ +0.01 +0.20 +0.08 +0.59 32 4 +0.18 r 2.1 +0.32 111 2014 per Capita Waste Disposal • Change from 2013 +1.89 -2 -1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Pounds ofWaste Data Sources: Equinox Project~ 2016; CalRecycle 2016; California Deportment of finance, 2015 #SDQoL Center for Sustainable Energy At my 25 of 498 Local Water Consumption Estimated Daily Municipal & industrial Water Use per Capita" (SDCWA member agencies, FY 2015 vs. change from 2014) ■ Change (torn 2014 A 2015 per Person Daily Use Carlsbad M.W.D. •14 County Avg. Del Mar, City of -29 Escondido, City of Fal (brook P.U.D. Helix W.D. Lakeside W.D. National City; City of Oceanside, City of Olivenhain M,W,D. Otey W.D. Padre Dam M.W.D. Pendleton M.A. Poway, City of -33 Rainbow M.W.D. -49 Ramona M.W.D. -14 2incon Del Diablo M.W.D. -34 San Diego, City of •15 San Dieguito W.D. -19 Santa Fe I.D. -43 South Ray I.D. .e Va0ecItos W.D. -3S Valley Center M.W.D. 49 Vistal,D. -17 Yuima M.W.D." -16 202 -11 -1 S -14 -14 -15 -17 -30 -15 -15 125 204 101 43 134 2 a8 10.7 105 196 449 111 170 122 153 431 127 2t13 177 -.1 -100 0 100 200 300 Gallons of Water 4.54 400 S00 600 700 •MOudes non -certified agricultural wafer use amUdrayricafhrral warer use served by loco! worer -*Yuma R4 W.O. rnereose in municipal arrd indusrrrat GPCPD attnburabfe to a*erectsed proportion of 5pedal AgriadturotWater Rate (SAW supply to row potable use in FY 2015 Data Sources: Equinox Project. 2076; Son Diego County Water Authority oniMember Agencies, 2Jr6 Center for facebook.com/TheEquinoxProject - .re- Sustainable Energy 26 of 498 Thank You Send your #SDQoL indicator ideas out to the world! Nor @EquinoxProject facebook.com/TheEquinoxProject Stephen Heverly, Senior Project Manager 858-429-5143 stephen. heverly@energycenter. org We work nationally in the clean energy industry and are always open to exploring partnership opportunities. et_instetraTnr Energy 27 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 28 The following page(s) contain the backup material for Agenda Item: 6th Annual "Career Pathways to Success" Job Fair - Jacqueline Reynoso, President, National City Chamber of Commerce and Diane Rose, Executive Director, South County Career Center. 28 of 498 ITEM # 8-16-16 6TH ANNUAL "CAREER PATHWAYS TO SUCCESS" JOB FAIR JACQUELINE REYNOSO PRESIDENT, NATIONAL CITY CHAMBER OF COMMERCE and DIANE ROSE EXECUTIVE DIRECTOR, SOUTH COUNTY CAREER CENTER 29 of 498 30 of 498 REPORT TO CITY COUNCIL 6th Annual "Career• Pathways to Success" Job Fair., Presented by the National City Chamber of Commerce and South County Career Center Report prepared by Jacqueline L. Reynoso, President/ CEO National City Chamber of Commerce 31 of 498 August 4, 2016 REPORT TO CITY COUNCIL 6t11 Annual "Career Pathways to Success" Job Fair SUMMARY The National City Chamber of Commerce partnered with the City of National City, the Small Business Development Center, and the South County Career Center, Business Services division to deliver the 6th Annual "Career Pathways to Success" Job Fair. The job fair was held at the Martin Luther King Jr. Community Center located at 140 East 12th Street, National City, CA 91950. The event date was Wednesday, April 13, 2016. Close to 650 job seekers attended the job fair. Based on a sample of respondents, 13% of the job seekers were National City residents. Compared to 2015, we saw a 29% increase in total job seekers. Furthermore, employer participation also increased by 18% from 2015 to 2016. `National City is taking a proactive approach to reduce the City's unemployment rate. We are working to create a thriving community by connecting residents to employment opportunities. The city approved this annual job fair as a city co -sponsored event due to its success and impact in our community." -Leslie Deese, City Manager, National City Since the job fair's inception in 2011, the City's unemployment rate has dropped significantly from 20% to 6.5% in 2016. According to SANDAG "The growth in population will drive job growth and housing demand within the region — adding nearly 500,000 jobs and more than 330,000 housing units by 2050." This job fair is organized annually to promote job creation and economic development in National City. Seventy-four (74) area employers from the healthcare services, hospitality sector, automotive, maritime industry, retail, as well as other key industry sectors participated in the job fair. Employers offered employment opportunities for over 2,000 local jobs. The Small Business Development Center at Southwestern College hosted the onsite Entrepreneurship Center (EC). The EC featured representatives from five (5) business development agencies including the ACCION San Diego, Small Business Development Center, Thomas Jefferson School of Law, Andreas USA, and Legal Shield. 32 of 498 Page 2© August 4, 2016 NATIONAL CITY, CA UNEMPLOYMENT RATES The current unemployment rate for National City is 6.5% as reported in August 2016 by the U.S. Bureau of Labor Statistics. The National City Chamber of Commerce initiated collaborations with key community partners in 2011 to implement an annual job fair accessible to National City residents. The first job fair was held on April 5, 2012. Since the job fair's inception 4 years ago, the City's unemployment rate has decreased by 11.2% from an unemployment rate of 17.7% in June 2012 to 6.5% in June 2016. Month/Year National City, CA% California% National % .i 1 / 2016 6.0% 5.7% 4.9% 2 / 2016 5.9% 5.5% 4.9% 3 / 2016 6.0% 5.4% 5.0% 4/2016 5.7% 5.3% 5.0% 5 / 2016 5.3% 5.2% 4.7% 6 / 2016 6.5% 5.4% 4.6% Month/Year National City, CA% California% National % 1 / 2015 7.3% 7.0% 5.7% 2 / 2015 6.8% 6.7% 5.5% 3 / 2015 6.5% 6.5% 5.5% 4 / 2015 6.3% 6.5% 5.4% 5 / 2015 6.4% 6.4% 5.5% 6 / 2015 6.6% 6.2% 5.3% 7/2015 7.0% 6.1% 5.3% 8 / 2015 6.6% 6.0% 5.1% 9 / 2015 6.2%0 6.0% 5.1% 10 / 2015 6.4% 5.9% 5.0% 11 / 2015 6.3% 5.9% 5.0% 12 / 2015 6.1% 5.9% 5.0% lonth/Year National City, CA% California% .1,„hational % 1 i 2014 13.8% 8.1% 6.6% 2 / 2014 13.7% 8.0% 6.7% 3 / 2014 13.6% 7.9% 6.6% 4 / 2014 13.7% 7.8% 6.2% 5 / 2014 13.5% 7.6% 6.3% 6 / 2014 12.1% 7.5% 6.1% 7 / 2014 13.1% 7.4% 6.2% 8 / 2014 12.3% 7.4% 6.1% 9 / 2014 11.7% 7.3% 5.9% 10/2014 11.6% 7.2% 5.7% 11 / 2014 11.5% 7.2% 5.8% 12 / 2014 10.3% 7.1% 5.6% Source: U.S. Bureau of Labor Statistics and homefacts.com 33 of 498 Page 13d° August 4, 2016 PARTNERSHIP This job fair was made possible through the generous support of numerous community partners and business leaders. Supporters include 12 organizing committee members, 5 community partners, 3 fiscal sponsors, 3 media sponsors, 74 employers, 5 business development agencies, and 33 volunteers. Committee Members • Adonna Aubry-Slay. South County Career Center • Carol Wiley, Small Business Development Center • Diane Rose, South County Career Center • Enemias Rocha, Employment Development Center • Gabriela Baeza, Employment Development Center • Jacqueline Reynosa, National City Chamber of Commerce • Kenneth Campbell, National City Chamber of Commerce • Lauren Maxilom, City of National City • Mona Rios, City of National City • Paul Aceves, South County Career Center • Paula Duarte, South County Career Center • Stephanni Casas, National City Chamber of Commerce Community Partners • National City Chamber of Commerce • City of National City • South County Career Center • SWC Small Business Development Center • Employment Development Department Sponsors To help cover event costs, the National City Chamber of Commerce secured financial support from the following chamber members. This job fair is unique in that we provide breakfast and lunch to all participating employers. In 2015, City Council adopted the Career Pathways to Success Job Fair as a City Co -Sponsored event, waiving up to $1,200 in permit fees. • City of National City • National City Tourism & Marketing District • South County Business Services • State of California Office of Assembly member Lorena Gonzalez • Univision Radio • Filipino Press • San Diego Union Tribune Employers National City employer, Marine Group Boat Works, and other regional employers including Rady Children's Hospital, Home Depot, and Wal-Mart offered employment opportunities from high tech to manufacturing positions, to entry level retail and hospitality. Of the 74 participating employers, 17 (22%) were National City based companies. The list below includes all participating agencies cate orized under industry sectors. Page I4© 34 of 498 August 4, 2016 Healthcare (11) AMR Accent Care Fredericka Manor San Ysidro Health Center CVS Pharmacy Home of Guiding Hands Synergy Home Care Sharp Healthcare UCSD VA Hospital ResCare Home Care Maritime and Automotive (11) CLP Marine Marine Groupbw South Bay Sandblasting NASSCO Continental Maritime Pasha Automotive Select Staffing CP Global NCS Technologies Teledyn Seabotix Venture Dynamics Hospitality/Retail (12) Lowes Coronado Five Star Tours SeaWorld Hilton San Diego Gaslamp Town Park Staffing United Services Kitchen Logic Navy Exchange Goodwill San Diego Trading Company WalMart Classic Party Rentals Public Agency (16) US Customs and Border Protection San Diego Unified Port District National City Police City of National City San Diego Airport Authority San Diego Metropolitan Transit System Naval Region Southwest County of San Diego Sweetwater HS District SD County District Attorney City of San Diego Army Recruiters San Diego Fire Dept Congressman Juan Vargas CA Dept of Corrections "The job fair is a great event for our community because it brings local employers an.d local workforce talent together. It is a great way to expose companies to the local workforce talent of National City." -Enernias Rocha, Employment Development. Center 35 of 498 Page 15© August 4, 2016 Assemblymember Lorena Gonzalez Other Employer (24) Pt Loma Credit Union South Bay Family YMCA Filipino Press ITT Technical Institute RHA CRST 1vIAAC Labor Ready Transdev New Car Dealers Association Volunteers of America SW SBHIS San Diego Electrical Training Center Ultimate Staffing Two Men and a Truck Innovative Technologies Allied Barton La Vista Memorial United Security Stanley Steamer Western Trucking T-Mobile Univision Concordia University Business Development Partners • Accion San Diego • Andreas USA • Legal Shield • Small Business Development Center • Thomas Jefferson School of Law "Our goal is to offer career opportunities to National City residents. Job creation leads to wealth creation, which, results in corn rrz.irnity empowerment and economic stimu.lu.s, -Jacqueline Reynosa, President( CEO, National City Chamber of Commerce Volunteers Our organizing committee engaged the assistance of 34 volunteers from the following agencies: • South County Career Center • EDD • Imperial Beach Health Center • City of San Diego • PCG • Mental Health Systems • San Diego Job Corps • National City Chamber of Commerce • United Security 36 of 498 Page I6© August 4, 2016 Services The job fair provided a host of services to job seekers including: • 104 resume reviews (17% of all attendees) • Business Development resources at the Entrepreneurship Center • Free technical assistance • Career development • One on one career training consultations • Introduction to training programs • Volunteer opportunities MARKETING Job fair promotion included various strategic outreach methods to increase attendance from National City job seekers. The National City Chamber of Commerce printed and distributed 10,000 fliers, 100 posters, reached over 25,000 people via our collective network of social media sites, and achieved over 75,000 media impressions. 15% of job seekers heard about the job fair from Newspaper or radio. Social Media • National City Chamber of Commerce Facebook, twitter, and website • South County Career Center Facebook, twitter, website, and database • City of National City Facebook and website, and an email blast to all City Employees • South Bay Community Services Facebook • SCEDC Facebook Community Promotion • Southwestern Community College Higher Education Center National City (Flier distribution) • South San Diego Business Development Center (Flier distribution) • Freeway Message Boards (5 freeway, 805 Freeway, and 54) • San Diego Naval Base Distribution through Public Information Officer Direct Outreach • Flier distribution to all 6,250 youth and their parents in the National School District through Peachjar (e-flyers) • Flier distribution to all 28,500 youth and their parents in the Chula Vista Elementary School District through Peachjar (e-flyers) • Emailed flier and notice to over 50 faith based organizations • Emailed flier and notice to over 500 National City Chamber Members in our database • School Marquee Signs (SUHI) Publications • Chamber News (Circulation 700) • Filipino Press (Circulation 25,000) • San Diego Union Tribune (Circulation 250,678) 37 of 498 Page 17© August 4, 2016 Media o Recorded interview and Onsite Presence by Univision Radio Univision Radio Univision Radio provided on air coverage of the event for a total of forty (40) 10-sec. pre- recorded promotional announcements inviting listeners to attend. Both KLQV 102.9FM and KLNV 106.5FM supported. the 2016 "Career Pathways to Success.' Job Fair with a promotional campaign that ran 4/7/16-4/13/16. To further increase on -air exposure, KLQV 102.9FM and KLNV 106.5FM mentioned the "Career Pathways to Success" Job Fair in the "De Viva Voz," program. Total promotional value from Univision Radio exceeded $24,500. Business Storefronts (75+) • Southwestern College -National City • Gama Produce • Coronado Cafe • Niederfrank's • Big Ben • Union Bank • Aunt Emma's Pancakes • Rodeos Meat Market • Checks Cashed • California Taco Shop • Coin Laundry • Wrigley's Supermarket • Mario's Family Clothing Center • Coin Laundry • 100% Natural • S.D. Rescue Mission Thrift Shop • Giant N.Y. Pizza • Dollar Tree • El Dorado Cleaners • El Nuevo Milenio Taco Shop • Euclid Laundromat • Vallarta Supermarkets • Carnival • Little Ceasers • Baskin Robins • Coin Laundry • Wal-Mart • Goodies Bar and Grill • Denny's • Cotijas • $5 Dollar Tasty Pizza • Birrias Chivos y Cheves • Red Bird Market • Los Panchos • Mi Tierra • Gorditas Don Andres • Denis's Bakery • Friendly Wash N' Dry • Plaza Donuts • Copacabana • IHOP • Frutas • Express Tires • Olivewood Gardens • El Torito • Pier 32 Marina • Navy Federal Credit Union • Cold Stone • Boys & Girls Club • Wally's Market • Goodwill • Taking Care of Business Check Cashing • Camacho gymnasium • YMCA Pool • MLK Center • NC City Hall • Human Resources Dept. • Community Services/Section 8/Housing & Grants • Casa de Salud Senior Center • Teen Center • Kimball Senior Center • Rincon del Mar • South Metro Career Center • Concord • South Bay Community Services • CV Libraries (2 locations) 38 of 498 Page 180 August 4, 2016 • Nestor Health Center South Bay YMCA • South Bay Health Insurance Services (2 locations) • Imperial Beach Library • Imperial Beach Family Resource Center • Pima • USA College • San Diego State University • Coldstone, San DiegO AGGREGATE JOB SEEKER STATISTICS The data below from year 2016 was gathered from 578 job seekers that attended the job fair. We observed a new trend in the longer term unemployed population. Of the 578 respondents that participated as job seekers, 37% had a bachelor's degree or higher. e Year 2016 2015 2014 2013 Participants Residence South County National City LUnemployed 613 476 49% 13% 57% 24% 13% 47% 956 52.43% 14.23% 63.8% 800 59.79% 21% 64.5% Jo. "air Year 2016 2015 2014 2013 Unemployed 57% Unemployed > 6 months 23% H.S. Diploma 54% B.A. or Associates 37% Household Income < 47% $15,000 47% 23% 40% 43% 42% 63.9% 32.15% 53..9% 35.23% 48.0% 64.48% 32.15% 60.28% 31.22% 50.39% Focusing on i.ri.-derrran.d industries specific to National City and South County, this year's job fair highlighted the recent increases in job opportunities in our region. With our participating employers along with the very successful collaboration between the South. County Career Center, the National City Chamber and the City of .National City, this annual event is really putting people back to rc'ork. -.Diane Rose, Business Services Coordinator, Proud Member of America's Job Center of California Network 39 of 498 Page 190O August 4, 2016 NATIONAL CITY JOB SEEKER STATISTICS • 37% of our Job Seekers had an Associates, Bachelor's Degree or higher • 62% of National City job seekers reported that they were currently unemployed Age and Household Income of National City Job Seekers 15 — 25 yrs 17% 26-40 yrs 40-55 yrs 33(.% 25% $0 — $15,000 $15,000 - $30,000 .I90 55+ ,yrs 16% $30,000 $45,000 Over $45,000 24% 8')/6 8% RECOMMENDATIONS FOR NEXT YEAR Based on a wrap up meeting conducted with the job fair organizing committee, the following recommendations were suggested to improve next year's job fair. Entrepreneurship Center • Business development services continue to be an attractive pursuit. for job seekers. We recommend continuing these services as part of the annual job fair. Registration • Utilize tablets to speed up registration. Partner with a technology partner.. Overall • Gather testimonies from those who got hired. • Work with City of National City to designate event parking on the street to avoid street sweeping on the day of and inform visitors about alternate parking sites. • Continue to use radios to communicate with organizers and staff at the job fair. • Create a job fair video that includes past year's event, testimonials, photos, etc. Employer Follow up • Request follow up report to assess the number of hires resulting from the job fair. • Incentives such as prizes and certificates have helped with employer response to post job fair survey. However, we would like to receive at least an 80% response from all employers. 40 of 498 Page I910 August 4, 2016 EMPLOYER FEEDBACK South County Business Services conducted a follow up survey with the employers that participated. Below are findings collected from respondents to date. • 38 NEW HIRES • 67 scheduled interviews confirmed within the first week • 92% "Very Good/Excellent" Satisfactory Rating OTHER COMMENTS This was very well planned out event. Looking forward to future events. Thank you. 4/27/2016 5:34 PM + Best one yet- continental breakfast was nice- and I received more potential good applicants than past years. Thank you also for lunch! 4/21/2016 9:38 AM • Great job fair. We rarely have job fairs where we meet applicants who already have their guard cards to work in security. This job fair had SEVERAL! 4/21/2016 10::35 AM + Great event and amazing turnout of job seekers. All staff members where very helpful to the employers and job seekers. 4/27/2016 5:33 PM "The joh fair produced one more result. My friend's sister, Jackie Nunez, a National City residence attended the job fair_ She visited two job fair booths and they both called her for an interri.ew. Roth companies offered d employment.... This is great news for her as she is a single parent and was previously working the night shift j?t.gg/ing her kids schedule with the night shift work hours. The new job offers great hours from 6:00 am. to 2: 30 pm, it is a raise and she is able to pick up her kids .from school.'' -Carol Willey, San Diego SBDC 41 of 498 Pagel 10© 42 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 43 The following page(s) contain the backup material for Agenda Item: Motion of the City Council of the City of National City approving the waiving of the reading of the text of the Ordinances considered at this meeting and providing that such Ordinances shall be introduced and/or adopted after a reading of the title only. (City Clerk) 43 of 498 ITEM # 8-16-16 MOTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE WAIVING OF THE READING OF THE TEXT OF THE ORDINANCES CONSIDERED AT THIS MEETING AND PROVIDING THAT SUCH ORDINANCES SHALL BE INTRODUCED AND/OR ADOPTED AFTER A READING OF THE TITLE ONLY. (CITY CLERK) 44 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 45 The following page(s) contain the backup material for Agenda Item: Approval of the Minutes of the Adjourned Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City of August 2, 2016 and the Corrected Minutes of the Regular Meeting of the City Council and C 45 of 498 Item # 08/16/16 APPROVAL OF THE MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY OF AUGUST 2, 2016 AND THE CORRECTED MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY OF JUNE 21, 2016 (City Clerk) 46 of 498 Book 98 ! Page 125 08-02-2016 DRAFT DRAFT DRAFT MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY August 2, 2016 The Adjourned Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City was called to order at 5:08 p.m. by Mayor 1 Chairman Ron Morrison. ROLL CALL Council 1 Board members present: Cano, Mendivil, Morrison, Rios, Sotelo-Solis. Administrative Officials present: Della, Deese, Duong, Manganiello, Parra, Raulston, Roberts, Rodriguez, Silva, Stevenson, Williams. Others present: City Treasurer Mitch Beauchamp and Student Representative Reah Sahagun. PLEDGE OF ALLEGIANCE TO THE FLAG BY MAYOR RON IVIORRISON PUBLIC COMMENTS Mitch Thompson and Colin- Rice, representing Morgan -kin -tail Community Partners spoke regarding th.e RFQ• process for Morgan1K!mbail Towers. Jill Milligan: National City, spoke about the plans of the Sweetwater Class of 1976 to raise funds for Scholarships. CITY COUNCIL CONSENT CALENDAR ADOPTION OF CONSENT CALENDAR. Item No. 1 (NCMC), Item No. 2 (Minutes), Item Nos. 3 through 12 (Resolution No. 2016-103 through 2016-112), Item Nos. 13 and 14 (Reports), Item Nos. 15 through 19 (Warrant Registers). Motion by Soteio-Solis, seconded by Cano, to pull Item Nos. 4 and 12, and to approve the remainder of the Consent Calendar. Carried by unanimous vote. 47 of 498 Book 98 / Page 126 08-02-2016 CONSENT CALENDAR (cont.) MUNICIPAL CODE 2016 (506-2-31) 1MOTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE WAIVING OF THE READING OF THE TEXT OF THE ORDINANCES CONSIDERED AT THIS MEETING AND PROVIDING THAT SUCH ORDINANCES SHALL BE INTRODUCED AND/OR ADOPTED AFTER A READING OF THE TITLE ONLY. (City Clerk) ACTION: Approved. See above. APPROVAL OF MINUTES 2. APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING OF THE CITY OF NATIONAL CITY OF JUNE 21, 2016. (City Clerk) ACTION: Approved. See above. CONTRACT (C2009-78) 3. Resolution No. 2016-103. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A FIRST AMENDMENT TO THE AGREEMENT WITH SOUTHERN CALIFORNIA SOIL & TESTING, INC. (SCS&T) TO EXTEND THE EXPIRATION • DATE OF THE AGREEMENT ONE YEAR TO AUGUST 4, .2017, TO PROVIDE ON -CALL PROJECT SUPPORT SERVICES FOR NATIONAL CITY'S CAPITAL !IMPROVEMENT PROGRAM (ClP),; INCLUDING, BUT NOT LIMITED TO, GEOTECHNICAL, SOILS AND MATERIAL TESTING. (Engineering/ Public Works) _ ACTION: Adopted: See above. PARKING &TRAFFIC CONTROL ADMEN 2016 (801-2-37) 4. Resolution No. 2016-104. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL RESCINDING RESOLUTION NO. 15,222 ADOPTED BY CITY COUNCIL ON FEBRUARY 24, 1987, TO REMOVE PARKING RESTRICTIONS FOR THE CUL-DE-SAC ON THE 3000 BLOCK OF E. 9TH STREET. (Engineering/Public Works) TESTIMONY: Marcella Cucinotti, National City, spoke against the proposed changes. ACTION: Motion by Cano, to leave it the way it is. Motion died for lack of a second. Motion by Sotelo-Solis, seconded by Rios, to adopt the Resolution. Carried by the following vote, to -wit: Ayes: Mendivil, Morrison, Rios, Sotelo-Solis. Nays: Cano. Abstain: None. Absent: None. 48 of 498 Book 98 / Page 127 08-02-2016 CONSENT CALENDAR (cont.) FINANCIAL MANAGEMENT 2016-2017 (204-1-32) 5. Resolution No. 2016-105. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE ESTABLISHMENT OF A $3,000 CONTRACT SERVICES ACCOUNT APPROPRIATION IN THE TRASH RATE STABILIZATION FUND AND CORRESPONDING USE OF TRASH RATE STABILIZATION FUND FUND BALANCE FOR TIRE RECYCLING SERVICES. (Engineering/Public Works) ACTION: Adopted. See above. CONTRACT (C2014-34) 6. Resolution No. 2016-106. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NO. .1 TO THE MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE SAN DIEGO UNIFIED PORT DISTRICT AND THE CITY OF NATIONAL CITY REGARDING THE NATIONAL CITY WAYFINDING SIGNAGE PROGRAM TO EXTEND THE TERM OF THE MOU TO MARCH 16, 2018. (Engineering/Public Works) ACTION: Adopted. See above. FINANCIAL MANAGEMENT 2016-201.7 (204-1-32) 7, Resolution No. 2016-107. RESOLUTION OF. THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE ESTABLISHMENT OF AN APPROPRIATION AND CORRESPONDING REVENUE BUDGET IN THE AMOUNT OF $2,500 FROM SDG&E'S 2016 SAFE SAN DIEGO INITIATIVE THROUGH THE BURN INSTITUTE, A 501(C)(3) NON- PROFIT ORGANIZATION FOR THE NATIONAL CITY COMMUNITY EMERGENCY RESPONSE TEAM (CERT) TO PURCHASE GAS SHUT OFF VALVE TOOLS AND PROVIDE TRAINING FOR USE BY APARTMENT MANAGERS. (Fire) ACTION: Adopted. See above. CONTRACT (C2016-33) 8. Resolution No. 2016-108. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND NATIONAL SCHOOL DISTRICT TO PROVIDE SWIM LESSONS FOR THIRD GRADE STUDENTS AT LAS PALMAS POOL FOR THE PERIOD AUGUST 8, 2016 THROUGH JANUARY 31, 2017 IN THE AMOUNT OF $40,000. (Community Services) ACTION: Adopted. See above. 49 of 498 Book 981 Page 128 08-02-2016 CONSENT CALENDAR (cont.) LABOR RELATIONS FFA (605-6-1) 9. Resolution No. 2016-109, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A SALARY SCHEDULE FOR THE FIREFIGHTERS ASSOCIATION EMPLOYEE GROUP FOR FISCAL YEAR 2017, EFFECTIVE AUGUST 2, 2016, IN COMPLIANCE WITH THE REQUIREMENTS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS). (Human Resources) ACTION: Adopted. See above. LABOR RELATIONS FFA MOU 2015-2018 (605-6-13) 10. Resolution No. 2016-110. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A SIDE LETTER AGREEMENT TO ARTICLE 34. (ASSOCIATION BANK) OF THE MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY AND THE NATIONAL CITY FIREFIGHTERS ASSOCIATION, (Human Resources) ACTION: Adopted. See above. LABOR RELATIONS EXEC 1 MID MGMT EMPLOYEES (605-2-1) 11. Resolution No. 2016-111. RESOLUTION OF THE CITY COUNCIL OF THE CITY _OF NATIONAL CITY APPROVING A REVISED SALARY SCHEDULE FOR THE MANAGEMENT EMPLOYEE GROUP FOR FISCAL YEAR 2017 IN COMPLIANCE WITH THE REQUIRE". ENTS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS), INCREASING THE SALARY BANDS FOR ASSISTANT DIRECTOR (F PUB !C WORKS!ENG!NEERING AND POLICE CAPTAIN. (Human Resources) ACTION: Adopted: See above. LABOR RELATIONS CONFIDENTIAL EMPLOYEES (605-5-00) 12. Resolution No. 2016-112. RESOLUTION OF THE CITY COUNCIL OF THE CITY.OF NATIONAL CITY APPROVING ADJUSTMENTS TO THE COMPENSATION PLAN FOR THE CONFIDENTIAL EMPLOYEE GROUP; AND APPROVING THE SALARY SCHEDULE FOR THE CONFIDENTIAL EMPLOYEE GROUP FOR FISCAL YEAR 2017 IN COMPLIANCE WITH THE REQUIREMENTS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS), INCLUDING A 2% SALARY ADJUSTMENT FOR ALL CONFIDENTIAL EMPLOYEE GROUP CLASSIFICATIONS. (Human Resources) ACTION: Motion by Cano, seconded by Mendivii, that we go back to the negotiation table and negotiate in good faith. 50 of 498 Book 98 1 Page 129 08-02-2016 CONSENT CALENDAR (cont.) LABOR RELATIONS CONFIDENTIAL EMPLOYEES (605-5-00) 12. Resolution No. 2016-112 (continued). POINT OF CLARIFICATION: Mayor Morrison clarified that we would not be going to the negotiation table because we don't negotiate. This group is different. But we could go back for reconsideration. Substitute Motion by Cano, seconded by Mendivil, that we reconsider Item #12. POINT OF CLARIFICATION: Human Resources Director Stacey Stevenson clarified that Confidential Employees are not a formally recognized bargaining group. The City Council has authority to set compensation for the Confidential Group just as they do for Managers and Executives, without negotiation. They do on occasion, as they did in this case, bring forward a request for their compensation which Council entertained and at the end of the day made a decision on what you wanted us to do in terms of their compensation package. If you return this item to staff, what will happen is, we will come back to you in Closed Session and ask what it is you want to do in terms of their compensation. Substitute Motion carried by the following vote, to -wit: Ayes: Cano, Mendivil, Morrison. Nays: Rios, Sotelo-Solis. Abstain: None. Absent: None. FINANCIAL MANAGEMENT 2015-2016 (204-1-31) 13. Investment transactions for the month ended May 31, 2016. (Finance) ACTION: Filed. See above. FINANCIAL MANAGEMENT 2015-2016 (204-1-31) 14. Investment Report for the quarter ended June 30, 2016. (Finance) ACTION: Filed. See above. WARRANT REGISTER JULY 2015 — JUNE 2016 (202-1-30) 15. Warrant Register #48 for the period of 05/25/16 through 05/31/16 in the amount of $589,818.81. (Finance) ACTION: Ratified. See above. WARRANT REGISTER JULY 2015 — JUNE 2016 (202-1-30) 16. Warrant Register #49 for the period of 06/01/16 through 06/07/16 in the amount of $2,952,133.53. (Finance) ACTION: Ratified. See above. 51 of 498 Book 981 Page 130 08-02-2016 CONSENT CALENDAR (cont.) WARRANT REGISTER JULY 2015 —JUNE 2016 (202-1-30) 17. Warrant Register #50 for the period of 06/08/16 through 06/14116 in the amount of $818,658.24. (Finance) ACTION: Ratified. See above. WARRANT REGISTER JULY 2015 — JUNE 2016 (202-1-30) 18. Warrant Register #51 for the period of 06/15/16 through 06/21/16 in the amount of $2,555,094.36. (Finance) ACTION: Ratified. See above. WARRANT REGISTER JULY 2015 — JUNE 2016 (202-1-30) 19. Warrant Register #52 for the period of 06/22/16 through 06/28/16 in the amount of $656,714.71. (Finance) ACTION: Ratified. See above. PUBLIC HEARINGS CONDITIONAL USE PERMITS 2016 (403-31-1) 20. Public Hearing - Conditional Use Permit for beer and wine sales at Game Produce located at 1605 East 4th Street. (Applicant: Susana Maza) (Case File 2015-28 CUP) (Planning) RECOMMENDATION: Staff recormends denial of the Conditional Use Permit TESTIMONY:. None: ACTION: It was announced that due to an error in the Public Notice, the Hearing would be re -noticed and rescheduled for August 16, 2016. There was no vote. CONDITIONAL USE PERMITS 2016 (403-31-1) 21. Public Hearing — Conditional Use Permit for a craft beer tasting room (Novo Brazil) at 27 & 41 East 8th Street. (Applicant: Joshua Renner) (Case File 2016-12 CUP) (Planning) RECOMMENDATION: Staff recommends approval of the Conditional Use Permit. TESTIMONY: Joel Tubao, the applicant, spoke in support and responded to questions. Morise Gusmao, Chula Vista, spoke in support of the CUP. Damianna Bechtel, National City, expressed concerns about the proposed project. Joshua Renner, San Diego, spoke in support. 52 of 498 Book 98 / Page 131 08-02-2016 PUBLIC HEARINGS (cont.) CONDITIONAL USE PERMITS 2016 (403-31-1) 21. Public Hearing — Conditional Use Permit for a craft beer tasting room (Novo Brazil) at 27 & 41 East 8th Street (continued), TESTIMONY: Memo Cavada, National City, spoke in support of the project but also expressed some concerns. Ferinand Agpaoa, representing the applicant, spoke in support, Janice Martinelli, National City, expressed some concerns and posed several questions about the proposed project. Robert Dominguez, National City, spoke in opposition. Angie Tubao, the applicant, spoke in support. Pablo Paredes, Project Architect, responded to questions. ACTION: Motion by Cano, seconded by Sotelo-Solis, to close the Public Hearing. Carried byunanimous vote. EXPARTE DISCLOSURE: All members of the . City Council disclosed contact with the applicant prior to the meeting. Motion by Cano, seconded by Morrison, to approve the Conditional Use Permit with ail findings and conditions of approval except Condition # 8. Ayes: Cano, Mendivil, Morrison, Rios. Nays: Sotelo- Solis Abstain: None: Absent: None. NON CONSENT RESOLUTIONS STREET VACATION ADMIN 2011-2020 (902-26-6) 22. Resolution No. 201E-113. RESOLUTION OF THE CITY COUNCIL OF THE CITY • OF NATIONAL CITY DENYING A STREET VACATION REQUEST FOR VACATION OF A SEGMENT OF "A" AVENUE LOCATED SOUTH OF EAST 28TH STREET AND NORTH OF EAST 29TH STREET. (Applicant: Frank Motors) (Case File No. 2013-23 SC) (Planning) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None, ACTION: Motion by Rios, seconded by Sotelo-Solis, to adopt the Resolution. Second withdrawn. Motion by Rios, seconded by Mendivil, to adopt the Resolution. Motion failed by the following vote, to -wit: Ayes: Mendivil, Rios. Nays: Cano, Morrison, Sotelo-Solis. Motion by Morrison, seconded by Cano, to return at the next meeting with a Resolution approving the street vacation based on the findings, evidence, and testimony from the previous Public Hearing. Carried by the following vote, to -wit: Ayes: Cano, Mendivil, Morrison, Sotelo-Solis. Nays: Rios. Abstain: None. Absent: None. 53 of 498 Book 98 l Page 132 08-02-2016 NON CONSENT RESOLUTIONS (cont.) FINANCIAL MANAGEMENT 2016-2017 (204-1-32) 23. Resolution No. 2016-114. Resolution of the City Council of the City of National City, 1) authorizing the City Manager to execute Earmark Repurposing sheets for submittal to SANDAG to repurpose Federal earmarked SAFETEA-LU funds in the amount of $611,931 from the 1-805 sound walls project to local roadway rehabilitation projects; and 2) committing to a 20% local match in the amount of $152,983 using local Prop A TransNet funds, as required for repurposing. (Engineering/Public Works) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None. ACTION: Motion by Sotelo-Solis, seconded by Mendivil, to adopt the Resolution. Carried by unanimous vote. NEW BUSINESS TEMPORARY USE PERMITS 201.6 (203-1-32) • 24, Temporary Use Permit —• 8th Annual Health & Wellness Fair hosted by Paradise Valley Hospital and The Southbay Tirnes.on October 29, 2016 from 10 = a rn. to 3 p.m. at 2400 E. • 4th• Street with no waiver of fees. (Neighborhood Services) RECOMMENDATION: Approve :the Application for a Temporary Use Permit ,subject try cor.pliance with all conditions of approval with no waiver of foes TESTIMONY: Ditas Yanlane, National City, responded to questions. ACTION: Motion by Cano, seconded by Mendivil, to approve staff recommendation. Carried by unanimous vote. LEAGUE OF CA CITIES ADMIN (104-2-1) 25. League of California Cities Annual Conference — Designation of Voting Delegate and Alternate(s). (City Manager) RECOMMENDATION: Staff requests Council's designation of a voting delegate and up to two alternates to represent the City of National City during the 2016 League of California Cities Annual Conference. TESTIMONY: None. ACTION: There was consensus to designate Mayor Morrison as the primary, and Council Member Sotelo-Solis as the alternate. There was no vote. 54 of 498 Book 98 ! Page 133 08-02-2016 COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY NO AGENDA ITEMS STAFF REPORTS Police Chief Manua! Rodriguez discussed the -previously distributed 2017 Police Department Community Outreach Calendar. City Engineer Steve Manganiello reminded everyone that the City will be hosting a Community Workshop on August 12tt' from 9 am to 2 pm at Casa Salud to get public input and promote walkability and active living Deputy City Manager Brad Raulston reported that the Port District has postponed their August 9th Public Hearing to September gth when the Balance Plan will be discussed. MAYOR AND CITY COUNCIL Student Representative Reah Sahagun inquired about progress on the pedestrian crossing upgrade on 30th Street. Member Mendivil said he was looking forward to the commencement of the ''Together we Can" program and expressed support for the revival of the Maytime Band Review. Member Mendivil requested that city Council Policy #118 on Working Groups be on the neXt agenda for discussion. Member Sotelo-Solis welcomed everyone back from the break, inquired about the status of the home plate replacement at Las Palmas Park, proudly acknowledged that National City was the first in the state to include an Environmental Justice Element in our General Plan and inquired about the schedule for consideration of the Kimball / Morgan Tower Exclusive Negotiation Agreement. Member Rios said she was surprised that the Port Working Group item (Policy #118) keeps popping up and was hopeful that it can be put to rest this next time. Member Rios reported on the progress of the Naming Rights issue between the Metropolitan Transit System (M T S) and San Diego Gas and Electric (SDG&E). Vice Mayor Cano welcomed everyone back from break and requested a report on the cost to install asphalt in the Kimball Bowl area of the Park. 55 of 498 Book 981 Page 134 08-02-2016 MAYOR AND CITY COUNCIL (cont.) Mayor Morrison praised the great working relationship that exists between the Police Department, Fire Department, City Staff and community, particularly in light of recent events taking place across the country. Mayor Morrison highlighted the fact that for the 6th time in fifteen years, a National City Police Officer has been selected as 'Officer of the Year' in San Diego County. CLOSED SESSION REPORT There was no Closed Session. ADJOURNMENT Motion by Sotelo-Solis, seconded by Rios, to adjourn the meeting to the next Regular Meeting of the City Council and Community Development Commission — Housinq Authority of the City of National City to be held Tuesday, August 16, 2016 at 6:00 p.m. at the Council Chambers, National City, California. Carried by unanimous vote. The meeting closed at 7:45 p.m. City tilerk The foregoing minutes were approved at the Regular Meeting of August 16, 2016. Mayor 56 of 498 Book 98 t Page 112 06-21-2016 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY (Corrected) June 21, 2016 The Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City was called to order at 6:11 p.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council 1 Board members present: Cano, Mendivil, Morrison, Rios, Sotelo-Solis. Administrative Officials present: Della, Deese, Duong, Manganiello, Raulston, Roberts, Rodriguez, Silva, Stevenson, Vergara, Williams, Ybarra. Others present: Student Representative Reah Sahagun. PLEDGE OF ALLEGIANCE TO THE FLAG BY MAYOR RON MORRISON PUBLIC COMMENTS Sunshine Horton, El Cajon, shared some inspirational quotes and provided details about various fund raising events she will be participating in to raise funds to assist children. Peggy Brownlee, National City Girls Softball, requested consideration be given to providing some temporary lighting at Las Palmas Park bail fields. AWARDS AND RECOGNITIONS PERSONNEL RECOGNITION / APPRECIATION ADMIN (604-2-1) 1. Employee of the Quarter 2016 = Police Corporal Alex Garcia, (Police) PRESENTATIONS COUNCIL MEETING PRESENTATIONS / AWARDS & RECOGNITIONS 2016 (102-10-11) 2. An Update on San Diego Association of Governments (SANDAG) San Diego Going Forward: The Regional Plan — Proposed Ballot Measure. (Mayor Morrison) TESTIMONY: Brian Clapper, National City, appeared on behalf of the Chamber and indicated opposition to the proposed sales tax measure. Marcus Bush, National City, spoke against the sales tax measure. 57 of 498 Book 981 Page 113 06-21-2016 PRESENTATIONS (cont.) COUNCIL MEETING PRESENTATIONS / AWARDS & RECOGNITIONS 2016 (102-10-11) 2. An Update on San Diego Association of Governments (SANDAG) San Diego Going Forward (continued). TESTIMONY: Recardo Ochoa, from the Quality of Life Coalition, spoke against widening Interstate Highway 5. Bernadette Butkiewicz, representing UA Local #230, spoke against the sales tax measure and in support of a Project Labor Agreement. Alicia Sanchez, spoke against the Quality of Life measure and freeway widening. Carolina Martinez, Environmental Health Coalition, spoke against the freeway widening and in favor of more public transit. Andrew McKercher, IBEW #569 and Quality of Life representative, spoke against the SANDAG proposal and in favor of a Project Labor Agreement (PLA). Janice Reynoso, National City, spoke about health problems in the area. Sebastian Sarria, from the Climate Action Campaign, spoke against freeway expansion and in support of a PLA. COUNCIL MEETING PRESENTATIONS / AWARDS & RECOGNITIONS 2016 (102-10-11) 3. "Together We Can" (Beautification Efforts and Code Compliance). (City Manager's Office and Neighborhood Services Department) CITY COUNCIL CONSENT CALENDAR ADOPTION OF CONSENT CALENDAR. Item No, 4 (NCMC), Item No. 5 (Minutes), Item Nos. 6 through 20 (Resolution No. 2016-83 through 2016-97), Item No. 21 (Report), Item Nos. 22 and 23 (Warrant Registers). Motion by Cano, seconded by Mendivii, to pull Item No. 20 and to approve the remainder of the Consent Calendar. Carried by unanimous vote. MUNICIPAL CODE 2016 (506-2-31) 4. MOTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE WAIVING OF THE READING OF THE TEXT OF THE ORDINANCES CONSIDERED AT T !-i!S MEETING AND PROVIDING THAT SUCH ORDINANCES SHALL BE INTRODUCED AND/OR ADOPTED AFTER A READING OF THE TITLE ONLY. (City Clerk) ACTION: Approved. See above. 58 of 498 Book 981 Page 114 06-21-2016 CONSENT CALENDAR (cont.) APPROVAL OF MINUTES 5. APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY OF JUNE 7, 2016. (City Clerk) ACTION: Approved. See above. ELECTION NOV 2016 ADMIN (505-25-1) 6. Resolution No. 2016-83. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY CALLING AND GIVING NOTICE OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2016, FOR THE ELECTION OF TWO (2) MEMBERS OF THE CITY COUNCIL, A CITY TREASURER AND A CITY CLERK AS REQUIRED BY THE PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES. (City Clerk) ACTION: Adopted. See above ELECTION NOV 2016 ADMIN (505-25-1) 7. Resolution No. 2016-84. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2016, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE SAME DATE PURSUANT TO SECTION 10403 OF THE ELECTION ION CODE. (City Clerk) ACTION: Adopted. See above ELECTION NOV 2016 ADMIN (505-25-1) 8. Resolution No. 2016-85. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATES' STATEMENTS OF QUALIFICATIONS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2016. (City Clerk) ACTION: Adopted. See above. FINANCIAL MANAGEMENT 2015-2016 (204-1-31) 9. Resolution No. 2016-86, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING AN APPROPRIATION INCREASE AND CORRESPONDING REVENUE BUDGET INCREASE IN THE AMOUNT OF $70,000 FOR THE ESG1L CORPORATION FOR BUILDING PLAN CHECK SERVICES FOR FY-2016. (Building/Fire) ACTION: Adopted. See above. 59 of 498 Book 98 / Page 115 06-21-2016 CONSENT CALENDAR (cont.) ABATEMENT WEED 2016 (402-3-15) 10. Resolution No. 2016-87. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE REPORT AND ACCOUNT FOR WEED ABATEMENT. (Fire) ACTION: Adopted. See above. CONTRACT (C2016-28) 11. Resolution No. 2016-88. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH ADMINSURE, INC., EFFECTIVE AUGUST 1, 2016, FOR WORKERS COMPENSATION THIRD PARTY ADMINISTRATION AND CLAIMS REVIEW IN THE INITIAL AMOUNT OF $3,852 FOR ONE-TIME CONVERSION AND $169,410 FOR ADMINISTRATION, FOR A TOTAL COST OF $173,262 FOR A PERIOD OF TVVO YEARS; AND AUTHORIZING THE CITY MANAGER TO EXECUTE FUTURE AMENDMENTS EXTENDING THE TERM OF THE AGREEMENT BY ONE YEAR INCREMENTS FOR UP TO AN ADDITIONAL THREE YEARS. (Human Resources) ACTION: Adopted. See above. LABOR RELATIONS MEA (605-4-00) 12. Resolution No. 2016-89. RESOLUTION OF THE CITY COUNCIL OF THF CITY OF NATIONAL CITY APPROVING A SALARY SCHEDULE FOR THE MUNICIPAL EMPLOYEES ASSOCIATION EMPLOYEE GROUP FOR FISCAL YEAR 2016-2017 IN COMPLIANCE WITH THE REQUIREMENTS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS). (Human Resources) ACTION: Adopted. See above. LABOR RELATIONS POA (605-3-00) 13. Resolution No. 2016-90. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A SALARY SCHEDULE FOR THE POLICE OFFICERS ASSOCIATION EMPLOYEE GROUP FOR FISCAL YEAR 2016-2017 IN COMPLIANCE WITH THE REQUIREMENTS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS). (Human Resources) ACTION: Adopted. See above. 60 of 498 Book 981 Page 116 06-21-2016 CONSENT CALENDAR (cont.) LABOR RELATIONS PART TIME / TEMPS J SEASONAL 2015-2025 (605-7-3) 14. Resolution No. 2016-91. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A SALARY SCHEDULE FOR THE PART-TIME AND SEASONAL EMPLOYEE GROUP FOR FISCAL YEAR 2016-2017 IN COMPLIANCE WITH THE REQUIREMENT OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS). (Human Resources) ACTION: Adopted. See above. LABOR RELATIONS EXEC / MID MGMT EMPLOYEES (605-2-1) 15. Resolution No. 2016-92. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A SALARY SCHEDULE FOR THE MANAGEMENT EMPLOYEE GROUP FOR FISCAL YEAR 2016-2017 ]N COMPLIANCE WITH THE REQUIREMENTS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS). (Human Resources). ACTION: Adopted. See above. LABOR RELATIONS EXEC / MID MGMT EMPLOYEES (605-2-1) 16. Resolution No. 2016-93. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A SALARY SCHEDULE FOR THE EXECUTIVE EMPLOYEE GROUP FOR FISCAL YEAR 2016- 2017 IN COMPLIANCE +VMTH THE REQUIREMENTS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM EM (CALPERS). (Human Resources) ACTION: Adopted. See above. CONTRACT (C2015-19) 17. Resolution No. 2016-94. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY: 1. AUTHORIZING THE MAYOR TO EXECUTE A SECOND AMENDMENT TO THE AGREEMENT WITH ABLE PATROL AND GUARD FOR THE PROVISION OF SECURITY GUARD SERVICE TO THE LIBRARY, EXTENDING THE TERM OF THE AGREEMENT FOR ONE YEAR, EXPIRING JUNE 30, 2017, FOR THE NOT -TO -EXCEED AMOUNT OF $40,000; AND 2. AUTHORIZING THE CITY MANAGER TO EXECUTE THE TWO ADDITIONAL ONE-YEAR TERM AMENDMENTS AS ALLOWED BY THE AGREEMENT, FOR AMOUNTS NOT TO EXCEED $50,000 FOR EACH ONE-YEAR TERM. (Library) ACTION: Adopted. See above. 61 of 498 Book 981 Page 117 06-21-2016 CONSENT CALENDAR (cont.) CONTRACT (C2013-41) 18. Resolution No. 2016-95. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY: 1) ACCEPTING THE WORK OF EC CONSTRUCTORS, INC. FOR THE NATIONAL CITY AQUATIC CENTER PROJECT, SPECIFICATION NO. 13-04; 2) APPROVING THE FINAL CONTRACT AMOUNT OF $3,716,557.64; 3) RATIFYING RELEASE OF RETENTION IN THE AMOUNT OF $180,754.04; AND 4) RATIFYING THE FILING OF THE NOTICE OF COMPLETION FOR THE PROJECT (Engineering/Public Works) ACTION: Adopted. See above. CONTRACT (C2016-29) 19. Resolution No. 2016-96. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING, 1) THE MAYOR TO EXECUTE MASTER AGREEMENT ADMINISTERING AGENCY -STATE AGREEMENT FOR FEDERAL -AID PROJECTS NO. 111-5066F15 WITH THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) TO INCORPORATE VARIOUS CHANGES IN FEDERAL REGULATIONS AND POLICES; 2) THE MAYOR TO EXECUTE PROGRAM SUPPLEMENT AGREEMENT NO. F011 WITH CALTRANS FOR THE EL TOYON-LAS PALMAS BICYCLE CORRIDOR PROJECT TO ALLOW FOR REIMBURSEMENT OF UP TO $50,000 IN ELIGIBLE PROJECT EXPENDITURES FOR PRELIMINARY ENGINEERING THROUGH THE FEDERAL ACTIVE TRANSPORTATION PROGRAM (ATP), AND; 3) THE APPROPRIATION OF $50,000 FOR THE PROJECT. (Engineering/pi iblic Works) ACTION: Adopted. See above. CONTRACT (C2015-59) 20. Resolution No. 2016-97, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY: 1) ACCEPTING THE WORK OF MA STEVENS CONSTRUCTION, INC, FOR THE NATIONAL CITY PUBLIC LIBRARY IMPROVEMENTS PROJECT, CIP NO. 15-08, 2) APPROVING THE FINAL CONTRACT AMOUNT OF $872,798.55, 3) AUTHORIZING RELEASE OF RETENTION IN THE AMOUNT OF $43,639.93, AND 4) AUTHORIZING THE MAYOR TO SIGN THE NOTICE OF COMPLETION FOR THE PROJECT. (Engineering/Public Works) ACTION: Motion by Rios, seconded by Sotelo-Solis, to adopt the Resolution. Carried by unanimous vote. 62 of 498 Book 981 Page 118 06-21-2016 CONSENT CALENDAR (cont.) FINANCIAL MANAGEMENT 2015-2016 (204-1-31) 21. Investment transaction for the month ended April 30, 2016. (Finance) ACTION: Filed. See above. WARRANT REGISTER JULY 2015 — JUNE 2016 (202-1-30) 22. Warrant Register #46 for the period of 05/11/16 through 05/17/15 in the amount of $2,692,637.22. (Finance) ACTION: Ratified. See above. WARRANT REGISTER JULY 2015 — JUNE 2016 (202-1-30) 23. Warrant Register #47 for the period of 05/18/16 through 05/24/16 in the amount of $2,334,127.53. (Finance) ACTION: Ratified. See above. PUBLIC HEARINGS STREET VACATION ADMIN 2011-2020 (902-26-6) 24. Continued Public Hearing — Proposed Street Vacation of a segment of "A" Avenue located south of East 28th Street and north of East 29th Street. *Continued from City Council Meeting of June 7, 2016* (Applicant: Frank Motors) (Case File No. 2013-23 SC) (Planning) RECOMMENDATION: Determine that no present or prospective public +1se would be effected by partial closure of "A" venue, based on facts contained in the staff reports. TESTIMONY: Ron Fernoca, representing Frank Motors, spoke in favor of the proposed vacation and responded to questions. Joseph Leon, National City, spoke against the street vacation. Jonathan Romero, National City, spoke in opposition. Juan Romero, National City, spoke in opposition. Eddie Perez, San Diego, spoke in opposition. ACTION: Motion by Sotelo-Solis, seconded by Cano, to close the Public Hearing. Carried by unanimous vote. Motion by Cano, seconded by Rios, to approve Plan B and deny based on findings and return with a Resolution. Carried by the following vote, to -wit: Ayes: Cano, Mendivil, Rios. Nays: Morrison, Sotelo-Solis. Abstain: None. Absent: None. 63 of 498 Book 98 / Page 119 06-21-2016 PUBLIC HEARINGS (cont.) COMMUNITY DEVELOPMENT LANDSCAPE MAINTENANCE DISTRICT NO. 1 (MILE OF CARS) (406-2-8) 25. Public Hearing — Confirming the assessment and ordering the levy for the Landscape Maintenance District No. 1 (Mile of Cars) for Fiscal Year 2016117. (Planning) **Companion Item #26** RECOMMENDATION: Conduct the Public Hearing TESTIMONY: None. ACTION: Motion by Cano, seconded by Mendivil, to close the Public Hearing. Carried by unanimous vote. NON CONSENT RESOLUTIONS COMMUNITY DEVELOPMENT LANDSCAPE MAINTENANCE DISTRICT NO, 1 (MILE OF CARS) (406-2-8) 26. Resolution No. 2016-98. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY CONFIRMING THE ASSESSMENT AND ORDERING THE LEVY FOR THE LANDSCAPE MAINTENANCE DISTRICT NO. 1 (MILE OF CARS) FOR FISCAL YEAR 2016/17. (Planning) **Companion Item #25** RECOMMENDATION: Adopt the Resolution confirming the assessment and ordering the levy. TESTIMONY: None. ACTION: Motion by Sotelo-Solis, seconded by Caro, to adopt the Resolution. Carried by unanimous vote. CONTRACT (C2016-30) 27. Resolution No. 2016-99. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY COUNCIL TO WAIVE THE FORMAL BID PROCESS PURSUANT TO NATIONAL CITY MUNICIPAL CODE SECTION 2.60.220, SUBSECTION (B), SOLE SOURCE PROCUREMENT, FOR THE POLICE DEPARTMENTS PURCHASE OF SEVENTY (70) BODY WORN CAMERAS, CLOUD BASED STORAGE OF DIGITAL EVIDENCE, AND INTERNET DATA MANAGEMENT THROUGH EVIDENCE.COM, INCLUDING SUPPORT SERVICES AND ONSITE TRAINING TO ASSIST WITH IMPLEMENTATION FROM TASER INTERNATIONAL, INC. AND AUTHORIZE THE CITY TO AWARD THE PURCHASE AND AUTHORIZE THE MAYOR TO EXECUTE A FIVE-YEAR CONTRACT IN THE AMOUNT OF $350,890.58 WITH TASER INTERNATIONAL, INC. (Police) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None. ACTION: Motion by Rios, seconded by Cano, to adopt the Resolution. Carried by unanimous vote. 64 of 498 Book 98 1 Page 120 06-21-2016 NON CONSENT RESOLUTIONS (cont.) CONTRACT (C2016-8) 28. Resolution No. 2016-100. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, 1) INCREASING THE CONTRACT WITH DICK MILLER, INC. IN THE NOT TO EXCEED AMOUNT OF $170,800 FOR THE PLAZA BOULEVARD & 114TH STREET IMPROVEMENTS PROJECT, CIP NO. 15-10; AND 2) AUTHORIZING THE MAYOR TO EXECUTE CHANGE ORDER NO. 2 IN THE AMOUNT OF $170,800 TO PROVIDE AND INSTALL EIGHT SOLAR POWERED, LED -ENHANCED PEDESTRIAN CROSSING SIGN SYSTEMS AT EXISTING CROSSWALKS. (Engineering/Public Works) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None. ACTION: Motion by Sotelo-Solis, seconded by Rios, to adopt the Resolution. Carried by unanimous vote. SEWER CONST / MAINT ADMIN 1995-2020 (906-1-9) 29. Resolution No. 2016-101. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, 1) RATIFYING THE CITY MANAGERS DECLARATION OF EMERGENCY WORK TO ADDRESS ISSUES RELATED TO A RUPTURED 8-INCH SEWER LINE ON THE WESTSIDE INFILL TRANSIT ORIENTED DEVELOPMENT (WI-TOD) SITE NEAR PARADISE CREEK; 2) RATIFYING THE WAIVING OF COMPETITIVE BIDDING PROCEDURES UNDER EMERGENCY CONDITIONS CONSISTENT WITH THE PROVISIONS INCLUDED IN SECTION 22050 "EMERGENCY CONTRACTING PROCEDURES" OF THE CALIFORNIA PUBLIC CONTRACT CODE AND SECTION 2.60.230 "EMERGENCY PURCHASES -EMERGENCY DEFINED" OF THE NATIONAL CITY MUNICIPAL CODE; AND 3) RATIFYING PREVIOUS ACTIONS TAKEN TO PROVIDE EMERGENCY SERVICES AS A RESULT OF THE RUPTURE OF THE SEWER LINE AS AUTHORIZED BY THE CITY MANAGER, INCLUDING BUT NOT LIMITED TO, PROCURING THE NECESSARY CONTRACTUAL SERVICES, EQUIPMENT, MATERIALS AND SUPPLIES TO RESTORE SEWER SERVICE AND ENSURE ENVIRONMENTAL COMPLIANCE. (Engineering and Public Works) RECOMMENDATION: Adopt the Resolution ratifying the City Manager's declaration of emergency work to address issues related to a ruptured 18- inch sewer line on the WI-TOD site near Paradise Creek, including waiving of competitive bidding procedures to procure the necessary contractual services equipment, materials and supplies to restore service. TESTIMONY: None. ACTION: Motion by Rios, seconded by Sotelo-Solis, to adopt the Resolution. Carried by unanimous vote. 65 of 498 Book 98 1 Page 121 06-21-2016 NON CONSENT RESOLUTIONS (cont.) COUNCIL POLICY MANUAL (102-13-1) 30. Resolution No. 2016-102. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING CITY COUNCIL POLICY #118 — CITY COUNCIL ATTENDANCE AT STAFF -LEVEL WORKING GROUPS. (City Manager) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None. ACTION: Motion by Sotelo-Solis, seconded by Morrison, to adopt the Resolution. Substitution Motion by Mendivil, seconded by Cano, to approve the Resolution as written but with the Mayor to have the right of first refusal to serve. Upon clarification, the Substitute Motion was withdrawn. The original motion carried by the following vote, to -wit: Ayes: Cano, Mendivil, Morrison, Sotelo- Solis. Nays: Rios. Abstain: None. Absent: None. NEW BUSINESS ANIMAL CONTROL ADMIN (304-1-3) 31. Response to request by City Council to provide updated reference information regarding the retail sale of animals in pet stores and related municipal codes. (Police) RECOMMENDATION: Accept and file. TESTIMONY: The following individuals spoke arjaint pet stores selling puppies or other animals and in support of an Ordinance banning such sales: Shari Villanueva, Rebekah Snyder, Sydnew Cicourel, Andrea Cuningham, Bryan Peose, Amber Hernandez, Joyce C., Jennifer Brecler, Lani Bray, Leslie Davies, Jim Kilby, Elizabeth Dreck Teresa Donnelly, Holly St. John, Laurie Michaels, Flavia (No last name given). The following individuals spoke in support of pet stores selling puppies and other pets and against a prohibition: David Salinas Sr., Yolanda Ramirez, David Salinas, Adefla Salinas, Sharon Franco, AI Franco, C. Franco. Animal Controi Officer Gordon responded to questions. ACTION: Motion by Sotelo-Solis, seconded by Rios, to move forward with an Ordinance. Motion failed by the following vote, to -wit: Ayes: Rios, Sotelo-Solis. Nays: Cano, Mendivil, Morrison. Abstain: None. Absent: None. 66 of 498 Book 98 / Page 122 06-21-2016 NEW BUSINESS (cont.) COUNCIL MEETINGS AGENDAS 2015 - 2024 (102-9-16) 32. Discussion regarding the order of items and reports that appear on the City Council regular meeting agenda. (City Manager) RECOMMENDATION: Request Council direction. TESTIMONY: None. ACTION: Motion by Sotelo-Solis, seconded by Rios, to return with information on what other Cities do. Carried by the following vote, to -wit: Ayes: Mendivil, Rios, Sotelo-Solis. Nays: Cano, Morrison. Abstain: None. Absent: None. ELECTION NOV 2004 - PROPOSITIONS (505-16-03) 33. City Council discussion of term limits for City Council members. (City Manager/City Clerk/City Attorney) RECOMMENDATION: Request Council direction, TESTIMONY: None. ACTION: Motion by Mendivil, seconded by Cano, to continue to the second meeting in August. Carried by unanimous vote. NOTE: Minutes approved by the City Council on August 2nd erroneously stated that Item No. 33 was "continued to the August 2nd Council meeting." The corrected motion appears above. COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY NON CONSENT RESOLUTIONS - HOUSING AUTHORITY HOUSING AUTHORITY 2016 (404-1-5) 34. Resolution No, 2016-39. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY APPROVING THE MORGAN AND KIMBALL TOWER BUDGETS FOR FISCAL YEAR 2016-2017 INCLUDING A $7 A MONTH PER UNIT INCREASE FROM $707 TO $714 FOR THE TOTAL RENT PAYMENT RECEIVED AT MORGAN TOWER WITHOUT INCREASING THE TENANTS SHARE OF THE TOTAL RENT PAYMENT FOR UNITS ASSISTED BY THE U.S. DEPARTMENT OF HUD PROJECT -BASED SECTION 8 HOUSING ASSISTANCE PROGRAM, AND ESTABLISHING AN APPROPRIATION TOTALING $200,000 IN THE KIMBALL TOWER BUDGET TO ACCOUNT FOR COMMUNICATIONS INFRASTRUCTURE IMPROVEMENTS AND A PARKING LOT RESURFACING PROJECT. (Housing, Grants, and Asset Management) RECOMMENDATION: Adopt the Resolution. 67 of 498 Book 981 Page 123 06-21-2016 NON CONSENT RESOLUTIONS — HOUSING AUTHORITY HOUSING AUTHORITY 2016 (404-1-5) 34. Resolution No. 2016-39 (continued). TESTIMONY: None. ACTION: Motion by Sotelo-Solis, seconded by Cano, to adopt the Resolution. Carried by unanimous vote. STAFF REPORTS ENGINEERING / PUBLIC WORKS DEPT — GRANTS / REPORTS ADMIN (1104-1-1) 35. Notification on Upcoming EDCO Events: Paper shredding and E-waste recycling (July 23, 2016 from 9:00 am to 12:00 pm at City Hall parking lot) and large item drop-off (September 10, 2016 from 9:00 am to 12:00 pm at Kimball and Las Palmas Parks). (Engineering/Public Works) MAYOR AND CITY COUNCIL Member Sotelo-Solis highlighted sever ribbon cuttings including the Aquatic Center and our partnership with Community Rowing. Member Rios reported that she attended a ribbon cutting for the California College of San Diego, National City Campus. Member Cann extended Father's Day tAiishes to all the fathers, thanked the Mayor for putting up the good fight against the Port and for all the hard work that he has done as well as the staff for the Aquatic Center opening. CLOSED SESSION REPORT City Attorney Claudia Silva stated there was nothing to report frnrn the Closed Session. (See attached Exhibit `L') ADJOURNMENT Motion by Mendivii, seconded by Cano, to adiourn the meeting to the next Adjourned Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City tc be held Tuesday, August 2, 2016 at 5:00 p.m. at the Council Chambers, National City, California. Carried by unanimous vote. Adjourned Regular Meeting of the City Counci! and Community Development Commission — Housing Authority of the City of National City to start at 5:00 p.m. due to the "National Night Out Event." The meeting closed at 12:43 a.m. 68 of 498 Book 98 / Page 124 06-21-2016 City Clerk The foregoing (Corrected) minutes were approved at the Regular Meeting on August 16, 2016. Mayor 2016 City Council Summer Legislative Recess E, July 5 — City Counci! Meeting — Suspended July 19 — City Council Meeting — Suspended 69 of 498 EXHIBIT `L' 1 + - CALIFORNIA - T1 NAL Orr agi twCO$PORpo RATEu AGENDA OF A SPECIAL MEETING CITY COUNCIL OF THE CITY OF NATIONAL CITY Main Conference Room Civic Center 1243 National City Boulevard National City, California Special Meeting — Tuesday, June 21, 2016 — 5:00 p.m. ROLL CALL CLOSED SESSION CITY COUNCIL 1 Conference with Labor Negotiators — Government Code Section 54957.6 Agency Designated Representatives: Stacey Stevenson Employee Organization: Confidential Group ADJOURNMENT Next Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City will be held Tuesday, June 21, 2016, 6:00 p.m., Council Chambers, Civic Center 70 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 71 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City waiving the bid process pursuant to NCMC 2.60.220(B) and (C) for the sole source purchase of five (5) ZOLL X Series Manual Monitor/Defibrillators with accessories from ZOLL Medical Corporation in 71 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City waiving the bid process pursuant to NCMC 2.60.220(B) and (C) for the sole source purchase of five (5) ZOLL X Series® Manual Monitor/Defibrillators with accessories from ZOLL Medical Corporation in the amount of $89,463.40 to be added to the $80,490.00 from the Regional Cooperative Care Program RCCP/AMR totaling $169,953.40. (Fire) PREPARED BY: Frank Parra DEPARTMENT: Fire PHONE: 619-336-4551 APPROVED BY: EXPLANATION: See Staff Report. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. 001-412-125-521-0000 — Firefighting Accessories APPROVED: Use budgeted funds of $89,463.40. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Approve the Resolution. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: Staff Report Quotation from ZOLL Medical Corporation Sole Source Letter from ZOLL Medical Corporation Resolution 72 of 498 STAFF REPORT ZOLL X Series The monitor/defibrillators currently used by the NCFD are in need of upgrade and replacement. NCFD currently uses ZOLL monitors. The NCFD previously evaluated three different monitors/defibrillators and ZOLL X Series was the only one that had the CPR dash -board (immediate feedback on a CPR call). This data is critical to maximize our effectiveness by allowing us to constantly give minor adjustments to the way we do CPR, allowing for the best possible clinical outcome for our patients. The only monitor/defibrillator to provide immediate feedback on a CPR call is the Zoll X Series, and there is no adequate substitute (NCMC 2.60.220(B)). The ZOLL X Series also allows personnel to see the patient's rhythm without interrupting CPR (this is called see through CPR), other monitors do not have such capability. The ZOLL X Series is also the only monitor/defibrillator compatible with the auto - pulse CPR device; the auto -pulse CPR device is our hands free mechanical CPR device. Chula Vista Fire Department and American Medical Response (AMR) use the ZOLL X Series, which provides improved continuation of care when all the medics know how to use the monitor. Switching to a different brand monitor will not allow AMR to exchange equipment on a one for one basis. It is clear that competitive bidding will not produce any competitive advantage, because the ZOLL X Series features are not provided by other providers. Lastly, the ZOLL X Series integrates and is compatible with our existing systems and this supplier has previously satisfactorily supplied this particular monitor/defibrillators in the past (NCMC 2.60.220(C)). Accordingly, staff recommends the City purchase five ZOLL X Series® Manual Monitor/Defibrillators with accessories for enhanced clinical capacity from ZOLL Medical Corporation. It is requested that the City Council waive the formal bidding requirements as allowed in National City Municipal Code Section 2.60.220(B) because the commodity can only be obtained from one source and National City Municipal Code Section 2.60.220 (c) because the Zell X Series allows the exchange of equipment on a one for one basis, and is compatible with existing systems. The total cost for the equipment is $169,953.40 of which the Regional Cooperative Care Program (RCCP)/AMR will pay $80,490.00 toward the purchase and the City will pay $89,463.40. RCCP consists of several regional fire partners that formed a Joint Powers Agreement to provide physician medical oversite, administrative, training, equipment, and services related to the provision of pre -hospital emergency medical services, at no additional cost to the General Fund. 2.60.220 - Open market procedure —Exception to bidding requirements. In any of the following instances, the city manager or purchasing agent may dispense with the requirements of bidding when any of the following applies, provided the circumstances are completely documented: B. The commodity, regardless of value, can be obtained from only one source. Sole source procurements may be used when there is only one source from which a particular commodity is available and there is no adequate substitute. Sole source procurement may also be used when it is clear that competitive bidding will not produce any competitive advantage or would be impractical or not meet an urgent city procurement need; 73 of 498 C. The commodity or service to be procured, regardless of value, is required to integrate with or be compatible with existing furnishings, materials, systems, programs or equipment and the procurement can be timely made from a manufacturer or supplier who previously satisfactorily supplied the particular commodity or service; 74 of 498 ZOLL Attn: Accounts Payable NATIONAL CITY FIRE DEPT 1243 NATIONAL CITY BLVD NATIONAL CITY CA 91950 ATTN : FR,ANK PARRA NET 30 DAYS 1 X SERIES MONITORS AND ACCESSORIES 2 ZOLL E SERIES TRADE ALLOWANCE 3 ESTIMATED TAX 9% 4 TOTAL PROPHET,CATHERINE 601-2431011-01 5001-9928 ZOLL Medical Corporation GPO PO Sox 27028 NEW YORK NY 10087-7028 NATIONAL CITY FIRE DEPT 1243 NATIONALCITY BLVD NATIONAL CITY CA 91950 5 4 THIS IS A MANUAL INVOICE CREATED AT THE REQEUST OF THE CUSTOMER PRIOR TO SHIPPING ACTUAL INVOICE TO FOLLOW WHEN PRODUCT HAS BEEN DELIVERED CUSTOMER RESPONSIBLE FOR ANY ADDITIONAL COSTS UPS MANUAL INVOICE 113028-1 19-JUL-16 1 OF 1 113028 176,912.95 -22,332.72 15,373.17 169,953.40 89,463.40 04-2711626 Currency: USD All discounts off list price are contingent upon payment within agreed upon terms. MasterCard, Visa and American Express gladly accepted. Any invoice discrepancies must be reported to ZOLL in writing within 7 business days of receipt. Otherwise, the customer deems all charges, terms and conditions to be valid. 75 of 498 Attn: Accounts Payable RCCP/AMR 8808 BALBOA AVE SAN DIEGO CA 92123 ATTN : RQD BAI LARD NET 30 DAYS 1 X SERIES MONITORS AND ACCESSORIES 2 ZOLL E SERIES TRADE ALLOWANCE 3 ESTIMATED TAX 9% 4 TOTAL PROPHET,CATHERINE 601-2431011-01 5001-9928 ZOLL Medical Corporation GPO PO Box 27028 NEW YORK NY 10087-7028 NATIONAL CITY FIRE DEPT 1243 NATIONAL CITY BLVD NATIONAL CITY CA 91950 5 4 THIS IS A MANUAL INVOICE CREATED AT THE REQEUST OF THE CUSTOMER PRIOR TO SHIPPING ACTUAL INVOICE TO FOLLOW WHEN PRODUCT HAS BEEN DELIVERED CUSTOMER RESPONSIBLE FOR ANY ADDITIONAL COSTS UPS MANUAL INVOICE 113028-2 19-JTJL-16 1 OF 1 113028 176,912.95 -22,332.72 15,373.17 169,953.40 80,490.00 04-2711626 Currency: UJSD All discounts off list price are contingent upon payment within agreed upon terms. MasterCard, Visa and American Express gladly accepted. Any invoice discrepancies must be reported to ZOLL in writing within 7 business days of receipt. Otherwise, the Customer deems all Charges, terms and conditions to be valid. 76 of 498 ZOLL June 29, 2016 National City Fire Attn: Frank Parra 1243 National City Boulevard National City, CA 91950 Dear Frank Parra, 269 Mill Road Chelmsford, Massachusetts 01824-4105 978 421-9655 (main) 978.421.0025 (fax) www.zoll.com We appreciate your selection of ZOLL® products for National City Fire. This letter serves as confirmation that ZOLL® Medical Corporation at 269 Mill Road in Chelmsford, Massachusetts, is the sole manufacturer and source of X Series® Defibrillators for the EMS Market. ZOLL® or Catherine Prophet, EMS Sales Account Executive, will not sell an X Series® Defibrillator to National City Fire through any vendor or dealer. Should you have any questions or require additional information please don't hesitate to contact me at (800) 348-9011, ext. 9674. Sincerely, Kinga Kardasinska, M.S. Contracts Specialist 77 of 498 RESOLUTION NO. 2016 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY WAIVING THE BID PROCESS PURSUANT TO NATIONAL CITY MUNICIPAL CODE SECTIONS 2.60.220(B) AND (C) FOR THE SOLE SOURCE PURCHASE OF FIVE (5) ZOLL X SERIES® MANUAL MONITOR/DEFIBRILLATORS WITH ACCESSORIES FROM ZOLL MEDICAL CORPORATION FOR THE AMOUNT OF $169,953.40 OF WHICH THE REGIONAL COOPERATIVE CARE PROGRAM (RCCP)/AMR WILL PAY $80,490.00 AND THE CITY OF NATIONAL CITY WILL PAY $89,463.40 WHEREAS, the ZOLL monitorldefibrillators currently used by the National City Fire Department ("NCFD") are in need of upgrade and replacement; and WHEREAS, NCFD previously evaluated three different monitors/defibrillators and determined that ZOLL X Series was the only one that had the CPR dash -board (immediate feedback on a CPR call) that provides data which is critical to maximize the effectiveness of CPR, and gives the best possible clinical outcome for patients; and WHEREAS, the Chula Vista Fire Department and American Medical Response ("AMR") use the ZOLL X Series, which provides improved continuation of care when all the medics know how to use the monitor and do not have to switch to a different brand monitor; and WHEREAS, the ZOLL X Series integrates and is compatible with NCFD's existing systems, and this supplier has satisfactorily supplied this particular monitor/defibrillators in the past; and WHEREAS, NCMC Section 2.60.220(B) allows the bid process be waived when the commodity, regardless of value, can be obtained from only one source and there is no adequate substitute. Sole source procurement may also be used when it is clear that competitive bidding will not produce any competitive advantage; and WHEREAS, NCMC Section 2.60.220(C) allows the bid process be waived when the commodity or service to be procured, regardless of value, is required to integrate with or be compatible with existing furnishings, materials, systems, programs or equipment and the procurement can be timely made from a manufacturer or supplier who previously satisfactorily supplied the particular commodity or service; and WHEREAS, the total cost for the for the purchase of five (5) ZOLL X Series® manual monitor/defibrillators with accessories from Zoll Medical Corporation is $169,953.40 of which the Regional Cooperative Care Program (RCCP)/AMR will pay $80,490.00 toward the purchase and the City will pay $89,463.40; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes waiving the bid process pursuant to sections 2.60.220(B), and 2.60.220(C) of the National City Municipal Code for the purchase of five (5) ZOLL X Series® manual monitor/defibrillators with accessories from Zoll Medical Corporation totaling $169,953.40 of which the Regional Cooperative Care Program (RCCP)/AMR will pay $80,490,00 toward the purchase and the City will pay $89,463.40. [Signature Page to Follow] 78 of 498 Resolution No. 2016 — Page Two PASSED and ADOPTED this 16th day of August, 2016. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor 79 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 80 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City ratifying the acceptance of $18,000 grant from the California Library Literacy Services (CLLS) to fund the Library's literacy services for FY2016-17; and authorizing the establishment of fund app 80 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 ArFNna ITFM wfl ITEM TITLE: Resolution of the City Council of the City of National City ratifying the acceptance of $18,000 grant from the California Library Literacy Services (CLLS) to fund the Library's literacy services for FY2016-17; and authorizing the establishment of fund appropriations and a corresponding revenue budget. PREPARED BY: Gloria Olivares DEPARTMENT: Lib PHONE: 470-5883 APPROVED BY: EXPLANATION: The CLLS grant is designed to support library literacy services to English-speaking - ► is who seek to i • e their reading and writing skills. To determine the amount of funding to the libraries that provide literacy services to their communities, the California State Library uses a funding formula consisting of the following three parts: Part 1 — A baseline amount to provide a minimum level of local literacy staffing and services. Part 2 — A per capita amount per adult learner served in the previous year; and Part 3 — A match on local funds earmarked for adult literacy services. This local match is fulfilled by a CDBG grant awarded to the Library by the City Council in the amount of $44,371 to defray the personnel costs of the Coordinator position overseeing literacy services. The CLLS grant is awarded to the Library in two payments: - This first payment of $18,000 is the baseline amount. - A second payment, whose amount is determined by applying the per capita and match components of the funding formula, will be disbursed in the fall once the final report for FY15-16 is submitted to the State Library at a later date in August. FINANCIAL STATEMENT: ACCOUNT NO. 320-418-339 320-31339-3463 ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: ' - APPROVED: Finance MIS STAFF RECOMMENDATION: Approval recommended BOARD / COMMISSION RECOMMENDATION: Approved by the Library Board of Trustees on August 15, 2016 ATTACHM ENTS: 1. Award Letter 2. Resolution 81 Ot 498 (..:on 617t a STATE LI BRARY EIMMILEGIMUMMIEW IZHFIYI,'GOVI Rl July 22, 2016 Minh Duong National City Public Library 1401 National City Boulevard National City, CA 91950-3314 Dear Ms. Duong: We're happy to provide funds for the fiscal year that began July 1, to support your California Library Literacy Services program and the important work you, your staff and volunteers do in your community. There are three parts to the library's funding formula: 1. A baseline amount ($18,000) for each approved literacy program to provide libraries with the funding needed to deliver a minimum level of local literacy staffing and services; 2. A per capita amount per adult learner served in the previous year; and 3. A match on local funds raised and expended for adult literacy services —reflecting a commitment to a continuing state/local partnership and providing an incentive for increased local support for adult literacy. The recently signed state budget continues California Library Literacy Services funding at $4.82 million, a $2 million increase over the funding level two years ago. Last year, the increased investment by the Brown administration allowed five new library jurisdictions to join the state literacy program. Applications are being accepted for the current fiscal year; we anticipate there will be more jurisdictions eager to help even more learners at other libraries across the state. At this time, we're providing the $18,000 baseline amount for your program. The remainder will be sent in the fall after a review of the reports you submit to us in August. The payment process begins once we receive your signed Claim Form (attached). Please direct any questions to: Lisa Dale at (916) 653-7743 or lisa.dale@library.ca.gov. Thank you for yo r willingness to do so much for so many people in need. RespecjIly yoy� s, Greg Ls Californ tate Librarian cc: Minh Doung, Literacy Coordinator minh.duongc nationalcitylibrary.orq File Enc.: Claim Form 916.653.5217 phone 916.653.8443 fax www.Iibrary.ca.gov 82 of 498 Library Development Services Bureau P. O. Box 942837 Sacramento, CA 94237-0001 900 N Street, 4th Floor, Sacramento, CA 95814 RESOLUTION NO. 2016 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY RATIFYING THE ACCEPTANCE OF A $18,000 GRANT FROM THE CALIFORNIA LIBRARY LITERACY SERVICES TO FUND THE NATIONAL CITY PUBLIC LIBRARY'S LITERACY SERVICES FOR FISCAL YEAR 2017, AND AUTHORIZING THE ESTABLISHMENT OF FUND APPROPRIATIONS AND A CORRESPONDING REVENUE BUDGET WHEREAS, on July 22, 2016, the National City Public Library was awarded a California Library Literacy Services ("CLLS") Grant in a baseline amount of $18,000 to fund the Library's literacy services for Fiscal Year 2017; and WHEREAS, to determine the amount of funding for libraries that provide literacy services to their communities, the Califomia State Library uses a funding formula consisting of the following three parts: (1) a baseline amount to provide a minimum level of local literacy staffing and services, (2) a per capita amount per adult learner served in the previous year, and (3) a match on local funds earmarked for adult literacy services; and WHEREAS, the local match in the amount of $44,371 was provided by a CDBG grant awarded to the National City Public Library by the City Council in June, 2016, to defray the personnel costs of the coordinator position overseeing literacy services; and WHEREAS, the CLLS grant is provided to the Library in two payments each year; the first payment of $18,000 is the baseline amount, and the second payment is determined by applying the other two parts of the formula (per capita and match) once the final report on the previous fiscal year is submitted to the State Library by the August 15 deadline. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby ratifies the acceptance of $18,000 in grant funds from California Library Literacy Services for funding of the National City Public Library's literacy services. BE IT FURTHER RESOLVED that the City Council hereby authorizes the establishment of a fund appropriation and corresponding revenue budget for grant funds from the California Library Literacy Services in the amount of $18,000. PASSED and ADOPTED this 16' day of August, 2016. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk Claudia Gacitua Silva City Attorney 83 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 84 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing the installation of 40 feet of red curb "No Parking" along the west side of Euclid Avenue immediately north of the commercial driveway to National City Plaza Shopping Center, located 84 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the installation of 40 feet of red curb "No Parking" along the west side of Euclid Avenue immediately north of the commercial driveway to National City Plaza Shopping Center, located at 2323 E. Division Street, to enhance visibility for drivers exiting the shopping center (TSC No. 2016-03). PREPARED BY: Stephen Manganiello PHONE: 619-336-4382 EXPLANATION: See attached. DEPARTMENT: Engineering/Public Works APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. NIA ENVIRONMENTAL REVIEW: NIA ORDINANCE: INTRODUCTION: APPROVED: APPROVED: FINAL ADOPTION: L Finance MIS STAFF RECOMMENDATION: Adopt Resolution authorizing the installation of 40 feet of red curb No Parking" along the west side of Euclid Avenue immediately north of the commercial driveway to National City Plaza Shopping Center. BOARD 1 COMMISSION RECOMMENDATION: At their meeting on June 15, 2016, the Traffic Safety Committee unanimously approved the staff recommendation to install 40 feet of red curb 'No Parking" along the west side of Euclid Avenue. ATTACHMENTS: 1. Explanation with Location Map 2. Staff Report to the Traffic Safety Committee on June 15, 2016 (TSC No. 2016-03) 3. Resolution 85 of 498 EXPLANATION The businesses from National City Plaza Shopping Center, located at 2323 E. Division Street, have requested red curb "No Parking" on the west side of Euclid Avenue immediately north of the shopping center driveway to enhance visibility for drivers exiting the shopping center. According to the businesses, their employees and customers have expressed concerns regarding visibility when vehicles are parked too close to the driveway. Staff performed a site evaluation. The posted speed limit for this segment of Euclid Avenue north of Division Street is 35 mph. Staff confirmed that visibility is obscured when vehicles park in close proximity to the shopping center driveway. Therefore, staff recommends installation of 40 feet of red curb "No Parking" along the west side of Euclid Avenue immediately north of the shopping center driveway. This would result in a Toss of two parking spaces. Staff confirmed there is available parking further north on Euclid Avenue, closer to the residential neighborhood. In addition, parking within the shopping center appears to be underutilized during business hours. If approved, all work will be performed by City Public Works. 86 of 498 Location Map with Recommended Enhancements (TSC item: 2016-03) 4 -7~- pr‘. 4.,,,,, ... ,.. .),-„,_, ,i. ,.,.., ....... ....„.„.c...,, _ ,,,,,,. ,.:,._. Existing 60' Red Curb "No Parkksg" TSC 2015-09 (Loss of 2 On -Street Parking Spaces) ram' + National City Plaza Shopping Center 2323 E. Division St. _3 - t I proposed 40' Red Curb "No Parking" per TSC 201g-03 (Loss of 2 On -Street Parking Spaces) • / re�� f .E•;. +� - - ...y.- " 4 • " , .i. A:. i \ '',, \ . ....., VI:PA...pp -': . - - :' N, '_‘• A.,. — 4,,, \"•-: N. EUCLID AVENUE -a-* _ "',-- 87 of 498 1 NATIONAL CITY TRAFFIC SAFETY COMMITTEE AGENDA REPORT FOR JUNE 15, 2016 ITEM NO. 2016-03 ITEM TITLE: REQUEST TO INSTALL 40 FEET OF RED CURB "NO PARKING" ON THE WEST SIDE OF N. EUCLID AVENUE, NORTH OF E. DIVISION STREET AND THE COMMERCIAL DRIVEWAY APRON TO ENHANCE VISIBILITY AND ACCESS ONTO N. EUCLID AVENUE FROM THE NATIONAL CITY PLAZA SHOPPING CENTER LOCATED AT 2323 E. DIVISION STREET (BY BUSINESSES OF NATIONAL CITY PLAZA SHOPPING CENTER) PREPARED BY: Kenneth Fernandez, P.E. Engineering and Public Works Department, Engineering Division DISCUSSION: The businesses of the National City Plaza Shopping Center, located at 2323 E. Division Street have requested red curb "No Parking" on the west side of N. Euclid Avenue, north of E. Division Street and the commercial driveway apron to provide adequate access and line -of -sight. According to the businesses, their employees and customers constantly encounter line -of -sight issues when vehicles are parked north of said driveway apron. Staff performed a site evaluation. The posted speed limit is 35 mph. The portion of Euclid Avenue between the City limits and E. Division Street is relatively straight, has a negligible grade, and an average daily traffic (ADT) count of 10,500 vpd (vehicles per day). However, when one vehicle is parked in close proximity to the access driveway, line -of -sight is hindered to oncoming traffic. If implemented, there will be a net loss of two standard -sized parking spaces. However, the general public will still have ample available on -street parking on both sides of Euclid Avenue. Additionally, staff noticed that the shopping center's parking lot was underutilized. All work for this TSC item will be performed in-house by the City's Public Works Division. STAFF RECOMMENDATION: Staff recommends installation of approximately 40 feet of red curb "No Parking" along the west side of N. Euclid Avenue immediately north of the commercial driveway apron serving the shopping center to enhance access and line -of -sight. EXHIBITS: 1. Location Map �. Photos 2016-03 88 of 498 Location Map with Recommended Enhancements (TSC Item: 2016-03) National City Plaza Shopping Center 2323 E. Division St. Existing GO' Red Curb No Parking" 1 t71 ,% TSC 2015-09 (Loss of 2 On -Street Parking Spaces) ‘2' -"*). s "1. _ met - j �r . ei...10, <i;" fiXt 101 01. i -' • 4. 4 ni *-. 1.1 r. • 4.7 Proposed 40' Red Curb "Flo Parking" per TSC 2015-03 (Loss of 2 On -Street Parking Spaces) N. EUCLID AVENUE A. 7Yrf1". dik 1L a 89 of 498 Location of Proposed 40' Red Curb on N. Euclid Avenue north of E. Division Street (looking north) 90 of 498 RESOLUTION NO. 2016 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF 40 FEET OF RED CURB "NO PARKING" ALONG THE WEST SIDE OF EUCLID AVENUE IMMEDIATELY NORTH OF THE COMMERCIAL DRIVEWAY TO NATIONAL CITY PLAZA SHOPPING CENTER, LOCATED AT 2323 EAST DIVISION STREET, TO ENHANCE VISIBILITY FOR DRIVERS EXITING THE SHOPPING CENTER WHEREAS, the businesses from National City Plaza Shopping Center, located at 2323 East Division Street, have requested red curb "No Parking" on the west side of Euclid Avenue immediately north of the shopping center driveway to enhance visibility for drivers exiting the shopping center; and WHEREAS, after a site evaluation, staff recommends the installation of 40 feet of red curb "No Parking" along the west side of Euclid Avenue immediately north of the shopping center driveway; and WHEREAS, at its meeting on June 15, 2016, the Traffic Safety Committee approved staffs recommendation. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the installation of 40 feet of red curb "No Parking" along the west side of Euclid Avenue immediately north of the shopping center driveway to enhance visibility for drivers exiting the shopping center. PASSED and ADOPTED this 16th day of August, 2016. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor 91 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 92 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing the installation of a blue curb handicap parking space with sign in front of the residence at 624 E. 3rd Street (TSC No. 2016-05). (Engineering/Public Works) 92 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the installation of a blue curb handicap parking space with sign in front of the residence at 624 E. 3rd Street (TSC No. 2016-05). PREPARED BY: Stephen Manganiello PHONE: 619-336-4382 EXPLANATION: See attached. DEPARTMENT: Engineering/Public Works APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: NIA ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt Resolution authorizing the installation of a blue curb handicap parking space with sign in front of the residence at 624 E. 3rd Street. BOARD 1 COMMISSION•RECOMMENDATION: At their meeting on June 15, 2016, the Traffic Safety Committee unanimously approved the staff recommendation to install a blue curb handicap parking space with sign in front of the residence at 624 E. 3rd Street. ATTACHMENTS: 1. Explanation with Location Map 2. Staff Report to the Traffic Safety Committee on June 15, 2016 (TSC No. 2016-05) 3. Resolution 93 of 498 EXPLANATION Mr. Kenneth Fulgram, resident of 624 E. 3rd Street, has requested a blue curb handicap parking space in front of his residence due to physical limitations. The residence is located on the south side of E. 3rd Street between "F" Avenue and "G" Avenue. Mr. Fulgram possesses a valid disabled person's placard from the California Department of Motor Vehicles. Staff visited the site and verified that the residence does not have an accessible driveway or garage to accommodate a vehicle with a disabled driver or passenger. The curb length in front of the residential lot is approximately 40 feet. There is one on -street handicap parking space provided to the west at 305 "F" Avenue. Per the City's Disabled Persons Parking Policy, since the total number of on -street handicap parking spaces (including the proposed handicap parking space) would not exceed 3% of the total number of available on -street parking spaces in the general vicinity, Mr. Fulgram's request is eligible for further consideration. The City's Disabled Persons Parking Policy is used to evaluate requests for handicap parking spaces. The Policy requirements for "Special Hardship" cases are as follows: 1. Applicant (or guardian) must be in possession of valid license plates or placard for "disabled persons" or "disabled veterans". This condition is met. 2. The proposed disabled parking space must be in front (or side if on a corner lot) of the applicant's (or guardian's) place of residence. This condition is met. 3. The residence must not have useable off-street parking available or an off-street space available that may be converted into disabled parking. This condition is met. Since all three conditions of the City Council's Disabled Persons Parking Policy are met for this "Special Hardship" case, staff recommends installation of a blue curb handicap parking space with sign in front of the residence at 624 E. 3rd Street. It shall be noted that handicap parking spaces do not constitute "personal reserved parking" and that any person with valid "disabled persons" license plates or placards may park in handicap spaces. If approved, all work will be performed by City Public Works, 94 of 498 Location Map with Recommended Enhancements (TSC Item: 2016-05) E 2NDSTREET .111,••• Nww j f-1•�- H.Y% . / s •_ "':r< r�c.,: • • j �� i • F' —..1..... • 4.1'•-•,---;=-„,4Z‘. di% .4 i--"1"-."( ..-:.-,'=—)a..2rI` • r re- co UI 0 co co r • •( - 'ram ,. . • �,�. ie • 'f' .r.4.•r-,• .-•._... _•• •, fir - . .f�+'„ rg�'�'�%.r _ +� + �mow' Sa. E• 3 ' ,', • TREE• • ,rt.• #t ,,,i r.; IpK- f • l s + f -" wri'iC. r i jell Existing Blue Curb Disabled Parking at 305 £'F° Ave PARKING ONLY • ; • • 11iF ••r, {� Tir + rl ' I dr.i - s' •1 S:5 • 1- "p�1 14 + • - rrr{ . I° t 4.4 } " 624 E. 3i° St I In -••. - fit -rot • In 41•514,r * 1- Proposed Blue Curb k_ Disabled Parking PARKING ONLY r l: ' 2 �rsi►: .rp:_ R{99 (CA} •;• !'w 4 ._. t .„,r - % '- v 41..E h yid. l 1.'l I I . *rw t, 'eat' wth 3 NATIONAL CITY TRAFFIC SAFETY COMMITTEE AGENDA REPORT FOR JUNE 15, 2016 ITEM NO. 2016-05 ITEM TITLE: REQUEST FOR INSTALLATION OF A BLUE CURB HANDICAP PARKING SPACE WITH SIGNAGE AT 624 E. 38° STREET BY K. FULGHAM) PREPARED BY: Kenneth Fernandez, P.E. Engineering and Public Works Department, Engineering Division DISCUSSION: Mr. Kenneth Fulgham, resident of 624 E. 3`d Street, has requested a blue curb handicap parking space in front of his residence due to physical limitations. The residence is located on the south side of E. 3rd Street between "F" Avenue and "G" Avenue. Mr. Fulgham possesses a valid disabled person's placard from the California Department of Motor Vehicles. Staff visited the site and verified that the aforementioned residence does not have an accessible driveway or garage to accommodate a vehicle with a disabled driver or passenger. The curb length in front of the residential lot is approximately 40 feet. There is one (1) on -street handicap parking space provided to the west at 305 "F" Avenue. Per the City Council Disabled Persons Parking Policy, since the total number of on -street handicap parking spaces (including the proposed handicap parking space) would not exceed 3% of the total number of available on -street parking spaces in the general vicinity, Mr. Fulgham's request is eligible for further consideration. The City Council has adopted a policy, which is used to evaluate requests for handicap parking spaces. The City Council Policy requirements for "Special Hardship" cases are as follows: 1 Applicant (or guardian) must be in possession of valid license plates or placard for "disabled persons" or "disabled veterans". This condition is met. 2. The proposed disabled parking space must be in front (or side if on a corner lot) of the applicant's (or guardian's) place of residence. This condition is met. 3. The residence must not have useable off-street parking available or an off-street space available that may be converted into disabled parking. This condition is mett. Based on the site evaluation, staff has determined that accessible parking is not available on the property. 96 of 498 It shall be noted that handicap parking spaces do not constitute "personal reserved parking" and that any person with valid "disabled persons" license plates or placards may park in handicap spaces. STAFF RECOMMENDATION; Since all three conditions of the City Uouncil's Disabled Persons Parking Policy are met for this "Special Hardship" case, staff recommends installation of a blue curb handicap parking space with signage in front of the residence at 624 E. 3rd Street. EXHIBITS: 1. Correspondence 2. Location Map 3. Photos 4. Disabled Persons Parking Policy 2016-05 97 of 498 i April 13, 2016 Engineering Department City of National City Gentlemen: Endosed is your form, =Request for Blue Curb Disabled Persons Parking Space, which i have completed. Additionally, enclosed Is a DMV form, Disabled Person Placard, which discloses the issuance of a Disabled Placard to me. My physician requested this document for me The reason I am requesting this card is that I reside across the street from a multiple complex apartment, with numerous vehicles, and frequently i am unable to park in front or, or near, my home. As your form indicates, while i have a garage, it was built on or about 1927 and its entrance is on a narrow alley, with no driveway. These Is no empty space in or around my home. Thank you for your consideration. i Kenneth R. Fulghani 624 E. 3`d Street National City, CA 91950 Enclosure 98 of 498 REQ J r FOR K IE cum potato PERSONS PARKINS SPACE. NAME OF DISABLED PERSON: freAtAkt et A- ia.1% A- ors DAME OF REPRESENTATIVE FOR DISABLED F650fil Of Meant ircri above * AiO»: _ _ _0 _ E PHONE NUMB t: Pipe arnrerthe � S'�fft�' a!9 Ta aiC 9( r# Please be � that �i Noe iskli Comadtiee, end your City Osundi detenrelning . , - to have blue curb tlisableds parsons P pieced in front vehicle in Potion of a disabledspaces considered public peridni. ore, eery dais placard or license pled Is legally Mowed to park In the blue curb far up to 72 continuous bans. 1) Do you b valid disabled ps son'S placard issued by the California Department of YES � Moobori►ehes DYES, 7 a copy of the placard, which contabis your name, address, placard number, and expington date` 2) Does your residenaa have sewage? *YES, is the Maze enouSh to PaNka vehicle 3) Does your residence hama driveway./ 9�JYES OM If YES, a)Ithe *flyaway lame to pork asohicW7 DYEB atio irelniumm of 20's IX) b) It the driveway It D ' " . D cj is the drtvewey sloped/Wined?sloped/Wined?PfES L_.J 4i Pleasewr#eany addltloral h I - - - OYES OM DES NH° & MEEK. MI OF NOIR.C1 99 of 498 AIM A Put4c Sery ce Agsncy ***CUSTOMER RECEIPT COY*** ***DISABLED PLACARD NUMBER: EULGRAM KENNETH 624 E 3RD ST NATIO CA CITY 91950 1 CO: 37 .PERSON PIC: 1 TV: 91 . JP;ei EXPIRES: 06/30/2017 PLACARD*** DATE ISSUED: 04/06/16 MO/YR; XR DT FEES RECVD: 04/06/16 DUE : NONE RECVD - CASH : CHCK CRDT . E10 613 09-0000000 0021 OS E10 040616 N1 DEPARTMENT OF MOTOR VEHICLES PLACARD IDENTIFICATION CARD IFICATION CARD OR FACSIMILE COPY IS TO BE CARRIED BY THE PLACARD IT TO ANY PEACE OFFICER UPON DEMAND. IMMEDIATELY NOTIFY DMV L OF ANY CHANGE OF ADDRESS. WHEN PARKING, BANG THE PLACARD VIEW MIRROR. REMOVE IT WHEN DRIVING. A, Pu%iic Service Agincw - PLACARD# : EXPIRES: DOB: ISSUED: TYPE: ' PLACARD HOLDER: Ft LGRAM KENNATE 624 E 3RD ST NATIONAL CITY CA 91950 PURCHASE OF FDEL (BUSINESS & PROFESSIONS CODE 13660): STATE LAW REQUIRES SERVICE STATIONS'TO REFUEL A DISABLED PERSON'S VEHICLE AT SELF-SERVICE RATES, EXCEPT SELF -.ICE FACILITIES WITH ONLY ONE CASHIER. 04/06/16 N1 WHEN YOUR PLACARD IS PROPERL *DISABLED PERSON PARKING SP PAYING *GREEN ZONES WITHOUT PREFERENTIAL PARKING PRIVI YOU MAY NOT PARR IN/ON: *SPACES MARD BY CROSSHA MAY PARK IN/ON: *STREET METERED ZONES WITHOUT ME LIMITS *STREET WHERE STDENTS AND MERCHANT'S. NES *WHITE OR YELLOW ZONES ABLED PERSON PARKING SPACES. IT IS CONSIDERED MISUSE: *'3'0:.M • .: ■ UNLESS THE DISABLED OWNER IS BEING TRANSPORTED *TOtr�;�r; } "WHICH HAS H CANCELLED OR DISP REVOKED *TO LOAN YO1iRi PLACARD TO • *. , INCLUDING FAMILY MEMBERS. MISUSE IS A MISDEMEANOR (SECTION 4461VC) AND CAN RESULT IN CANCELLATION OR REVOCATION OF THE PLACARD. LO A nr P P7TM _ aurTrrr.,ar_we n,,,i, in= ti•Tn,Q� 100 of 498 O_ 0 M0 W Crof . 74* "x X r W=�T .. irte .. : . 4r w_,i - I a ! r M mp ...... - '' / AribaL t , .) IC -1 ‘ RA9 %CA) Location Map with Recommended Enhancements (TSC Item: 2016-05) Ea ZI 'REE' ' L 4 45- • -- l..krt?nl. Vs ;.,• E. 3 TRE�t�_ _ s ,�_`.: fi ,* 4-7 Existing Blue Curb %�i► AFC Disabled Parking at 30S - a w" °IL • ems'' _ _„n' �.1 . }.s� d ._ . •A ,• rs�.-3rsWt!�-s. -r.. . �.,.� i .�, i �'-Jf�y r �� r'11 t,. .I. .3 - ,.. LIP •� ` • i r ' lawmv 6 1n r Proposed Blue Curb Disabled Parking M • • 't MIL 444 i (Sia. ••7:41•4. x .. ONLY , `ti .ate.. , !- .• � S" R99 (CA) "Is .n. l};teL y.• ". A iy • ... yf v IA w � ., , - Y. 1 V k .. t IF ifta 5.. .-t we 1 G Proposed Location Location of Proposed Blue Curb and Signage at 624 E 3" Street (looking south) lj 11161-Z. 4 4 Location of Proposed Blue Curb and Signage at 624 E 3" Street (looking southeast) 102 of 498 DISABLED PERSONS PARKING POLICY The purpose of a disabled persons parkin; zone is to provide designated parking spaces at major points of assembly for the exclusive use of physically disabled persons whose vehicle displays a distinguishing license plate as authorized by the California Department of Motor Vehicles. The City Council may upon recommendation of the City Engineer, designate specially marked and posted on -street parking spaces for disabled persons pursuant to California Vehicle Code 21101, et seq, at the following facilities: 1, Government buildings serving the public such as administration buildings, public employment offices, public libraries, police stations, etc. 2, Hospitals and convalescent homes with more than 75-bed capacity. 3, Medical facilities and doctors' offices staffed by a maximum of five practitioners, Zones shall be located to serve a maximum number of facilities on one block. 4. Community service facilities such as senior citizens service centers, etc. 5. Accredited vocational training and educational facilities where no off- street parking is provided for disabled persons. 6. Employment offices for major enterprises employing more. than 200 persons. Public recreational facilities including municipal swimming pools, recreation halls, museums, etc. 8. Public theaters, auditoriums, meeting halls, arenas, stadiums with more than 300 seating capacity. Other places of assembly such as schools and churches. 10. Commercial and/or office building(s) with an aggregate of more than 50,000 square feet of usable floor space. Zone shall be located to serve a maximum number of facilities on one block. 11. Hotels catering to daily guests, maintaining a ground floor lobby and a switchboard that is operated 24 hours per day. 103 of 498 12, A hotel or apartment house catering to weekly or monthly guests and containing more than 30 separate living units, In addition, disabled persons parking spaces may be provided within all publicly owned, leased or controlled off-street parking facilities as specified in the General Requirements. General Requirements Each disabled persons parking space shall be indicated by blue paint and a sign (white on blue) showing the international symbol of accessibility (a profile view of a wheelchair with occupant). Where installed under the above criteria the total number of disabled persons curb parking spaces will be limited to 3% of the total number of on street parking spaces available in the area and shall be distributed uniformly within the area. Disabled persons parking will not be installed at locations with a full-time parking prohibition, When a disabled persons parking zone is installed where a part-time parking prohibition is in effect, the disabled persons parking zone will have the same time restrictions as the part-time parking prohibition. The cost of installing disabled persons parking will be assumed by the City on public streets and public off-street parking facilities. In establishing on -street parking facilities for the disabled there shall be a reasonable determination made that the need is of an on -going nature. The intent is to prevent the proliferation of special parking stalls that may be installed for a short-term purpose but later are seldom used. Unjustified installation of such parking stalls unnecessarily increases the City's maintenance and operations costs, reduce available on - street parking for the general public, and detract from the overall effectiveness of the disabled persons parking program, Special Hardship Cases It is not the intention of the City to provide personal reserved parking on the public right-jof-way, especially in residential areas. However, exceptions may be made, in special hardship cases, provided all of the following conditions exists: (1) Applicant (or guardian) must be in possession of valid license plates for "disabled persons" or "disabled veterans." (2) The proposed disabled parking space must be in front of the applicant's (or guardian's) place of residence. 104 of 498 Subject residence must not have useable off-street parking available or off-street space available that may be converted into disabled parking. NOTE:It must be emphasized that such parking spaces do not constitute "personal reserved parking" and that any person with valid "disabled persons" license plates may park in the above stalls. {3) Jha: p 105 of 498 RESOLUTION NO. 2016 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF A BLUE CURB HANDICAP PARKING SPACE WITH SIGNAGE IN FRONT OF THE RESIDENCE AT 624 EAST 3RD STREET WHEREAS, a resident of 624 East 3rd Street possesses a valid Disabled Person Placards from the State of California Department of Motor Vehicles and has requested the installation of a blue curb handicap parking space in front of his home; and WHEREAS, after conducting an inspection and review, staff determined that all conditions have been met for the property to qualify for a blue curb handicap parking space; and WHEREAS, on December 9, 2015, the Traffic Safety Committee determined that all conditions have been met for the property to qualify for a blue curb handicap parking space and approved the installation of a blue curb handicap parking space with signage in front of the residence at 624 East 3rd Street. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the City Engineer to approve the installation of a blue curb handicap parking space with signage in front of the residence at 624 East 3'' Street. PASSED and ADOPTED this 16th day of August, 2016. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor 106 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 107 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City approving the Final Audit Report for the Morgan Square Business Improvement District for the period from January 1, 2008 through and including June 30, 2014. (Planning) 107 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2010 ITEM TITLE: Resolution of the City Council of the City of National City approving the Final Audit Report for the Morgan Square Business Improvement District for the period from January 1, 2008 through and induding June 30, 2014. (Planning) AGENDA ITEM NO. PREPARED BY: Raymond Pe, Principal Planner ogt<P DEPARTME < Pia PHONE: 336-4421 APPROVED BY: EX�LANA OP4 Background report attached. FINAN IAL STA'RIM'till*APPROVED. Finance The Successorm Agency will recover $54, .92 in attoey°s flees APPROVED: fry the nremaining kar t. The raining funds In the PBID will be MI3 refunded in ac=itance wag Str & Hwy Code 33671. ENVIRONMENTAL REVIEW This action is not subject to the California Environmental Quality Act since it is not a project as defined in the California Code of Regulations, Section 15378. ORDINANCE: INTRODUCTION: + FINAL ADOPTION: STAFF RECOMMENDATION; Adopt the resolution approving the Final Audit Report BOARD 1 COMMISSION RECOMMENDATION: Not applicable: ATTACHMENTS: 1. Background Report 2. Settlement Agreement 3. Declaration of Ditas Yamane 4. Final Audit Report 108 of 498 Attachment 1 Background Report The Morgan Square Property and Business Improvement District was formed on August 3, 2004, pursuant to the California Property and Business Improvement District Law of 1994 (Sts & Hwy Code Section 36600 et seq., "PBID Law"). The District was established to provide for the maintenance, operations, and servicing of certain improvements in the District, which generally includes parcels with frontage on National City Boulevard and Roosevelt Avenue between 2nd Street and 12th Street and on 8th Street between Interstate 5 and D Avenue. On March 8, 2005, the Community Development Commission and National City Morgan Square, Inc., entered into an agreement for the administration and operation of the District pursuant to the Management District Plan and PBID Law. Subsequently, the City transferred approximately $1,163,000 collected from the levy of assessments in the District to Morgan Square. In return, Morgan Square was to utilize these funds as set forth in the Agreement for activities and services in the District. The District expired by its own terms in 2010 in accordance with the PBID Law. No action was taken by any of the Parties to renew the District, and it has not been renewed. On June 25, 2013, the City and the Successor Agency filed suit against Morgan Square for breach of the agreement and violation of the PBID Law based upon: (1) not providing certain accounting records and documentation to the City; and (2) upon expiration of the District, not taking steps to refund the remaining District Funds in Morgan Square's possession to the assessed property owners. In September 2013, on the City's motion, the Superior Court for the County of San Diego issued a temporary restraining order to restrict the use of funds within Morgan Square's possession. In November 2013, an injunction was ordered by the Court prohibiting Morgan Square from using the District funds other than for a specific use approved by the Court, that being payment for Court approved legal expenses incurred by Morgan Square. Subsequently, the Parties negotiated a Settlement Agreement and Release, which was approved by the City Council on December 15, 2015 and the Oversight Board of the Successor Agency on April 20, 2016. Under the terms of the Agreement: 1. Morgan Square shall prepare and submit a final audit to the City. 2. Morgan Square shall return the funds to the City. 3. The City will refund the funds in accordance with PBID Law. 4. The Successor Agency and the City shall recover $54,006.92 in attorney's fees, payable from the funds. Pursuant to the Settlement Agreement, Morgan Square has prepared the Final Audit Report for the period from January 1, 2008 through and including June 30, 2014. The 1 109 of 498 proposed resolution would approve the Final Audit Report for the Morgan Square Business Improvement District. Morgan Square is obligated to return all District Funds in the possession of Morgan Square to the City. Final Audit The Final Audit was prepared by the same firm that had previously performed the audits for the Morgan Square PBID. The audit report includes; statement of assets and net assets as of June 30, 2014 (with a comparison from January 1, 2008); statement of revenue and expenses for the 6-1/2 years ended June 30, 2014; statement of functional expenses for the 6-1/2 years ended June 30, 2014; schedule of payments received from the City and deposited to Morgan Square for the period of January 1, 2008 through April 10, 2010; and, cash transactions for the period of January 1, 2008 through June 30, 2014 (which includes the years in which the audit report was due as alleged in the litigation). The Final Audit, if approved, completes the outstanding requirement of Morgan Square to prepare and provide such a report. In addition to the Final Audit, a declaration has been provided by Ditas Yamane, bookkeeper for Morgan Square, certifying that there has been no activity related to expenses paid from the accounts since the time of the audit statement. Conclusion The Final Audit concludes there is $256,589 in cash and equivalents as of June 20, 2014. The Stipulated Judgment requires Morgan Square to turn over $256,589 to the City. Once received, the City can return those monies to the property owners in accordance with PBID law. Staff Recommendation Approve the Final Audit Report. 110 of 498 2 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Charles B. Christensen (SBN 56728) Joel B. Mason (SBN 207708) CHRISTENSEN & SPATH LLP 550 West C Street, Suite 1660 San Diego, CA 92101 Tel: (619) 236-9343 Fax: (619) 236-8307 Claudia G. Silva (SBN 167868) City Attorney CITY OF NATIONAL CITY 1243 National City Boulevard National City, CA 91950 Tel: (619) 336-4220 Fax: (619) 336-4327 Attorneys for Plaintiffs City of National City and The Successor Agency to the Community Development Commission of the City of National City ELECTRONICALLY FILED Superior Court of California, County of San Diego 03l21 /2010 at 08:34:00 Alin Clerk of the Superior Court By Jenitta 'uirissirno,Deputy Clerk [Fee Exempt, Gov. C. § 6103] IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA IN AND FOR THE COUNTY OF SAN DIEGO THE CITY OF NATIONAL CITY, a municipal corporation; THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY; and ROES 1 through 10, Plaintiffs, v. MORGAN SQUARE INC., a California nonprofit corporation, NATIONAL CITY MORGAN SQUARE, INC., an entity of unknown origin; and DOES 1 through 25, inclusive, Defendants. CASE NO.37-2013-00054606-CU-OR-CTL STIPULATION FOR SETTLEMENT AND C OD AITH SETTT EMENTVING BETWEEN CITY OF NATIONAL CITY ORDERING TURN OVEY] AND MOANR F FUNDS INC.;O THE CITY; ALLOWING REIMBURSEMENT OF CITY'S ATTORNEYS' FEES• DISSOLVING THE PRELIMINARY INJUNCTION ISSUED IN THIS CASE UPON PAYMENT OF THE FUNDS TO THE CITY; RETAINING JURISDICTION TO ENFORCE THE SETTLEMENT AND THE ORDERS OF THE COURT IMAGED FILE Date: , 2016 Time: Complaint Filed: June 25, 2013 Dept: 71 Judge: Hon, Gregory W. Pollack Stipulation for Settlement and (Proposed) Order Approving Good Faith Settlement 111 of 498 lT IS HEREBY STIPULATED AND AGREED by and between Plaintiffs, City of National City and The Successor Agency to the Community Development Commission as the National City Redevelopment Agency, and Defendants, Morgan Square Inc., a California non- profit corporation and National City Morgan Square, Inc., by and through their respective counsel of record, having reached a settlement of their dispute concerning the remaining funds in the Downtown National City Property Business lmprovement District ("PBID"), the status of said funds being the central subject of the above -captioned lawsuit. The Parties understand that each Party has the right to a trial of the matter, various appeal rights, rights to move for a new trial. to set aside the judgment, and other remedies directly and indirectly challenging the judgment. However, after a review of all the issues, the Parties agree that they, and each of them, do not elect to try the matter, and instead agree to the following stipulation for settlement of the issues that were raised or could have been raised in the above -captioned lawsuit. The parties request that the Court retain jurisdiction over them to enforce the settlement until performance in full of its terms. The Parties stipulate as follows: SETTLEMENT AGREEMENT AND RELEASE This Settlement Agreement and Release (`°Settlement Agreement") is made this day of February 2016. by and between MORGAN SQUARE, INC. ("Morgan Square"), THE CITY OF NATIONAL CITY, a municipal corporation ("City"), and THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY ("Successor Agency"). Morgan Square, the City and the Successor Agency are collectively referred to herein as the "Parties". RECITALS A. On August 3, 2004, pursuant to City Council Resolution No. 2004-148, the City established the Downtown National City Property and Business Improvement District. also 2 Stipulation for Settlement and (Proposed) Order Approving Good Faith Settlement 112 of 498 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 known as Morgan Square (the "District") pursuant to the California Property and Business Improvement District Law of 1994 (found at Sts. & I-Iy. Code, § 36600 et seq., "PBID Law"). B. The City delegated oversight of the District to the Community Development Commission of the City of National City ("CDC"). On March 8, 2005, the CDC and National City Morgan Square Inc. entered into a written agreement for administration and operation of the District pursuant to the Management District Plan and PBID Law ("Agreement"). Even though the Agreement was entered into by "National City Morgan Square, Inc.", Morgan Square was and is the contractor providing services in the District. C. The City transferred approximately $1,163,000 collected from the levy of assessments in the District to the Contractor (the "District Funds"). In return, Contractor was to utilize the District Funds as set forth in the Agreement for activities and services in the District. The District expired by its own terms in 2010, and in accordance with the PBID Law, and no action was taken by any of the Parties to renew the District and it has not been renewed, D. The Successor Agency was created by the City Council of the City of National City pursuant to Resolution No. 2012-15 and Part 1.85 of the Health and Safety Code to serve as the Successor Agency to the CDC (the Redevelopment Agency) upon its dissolution under Assembly Bill ABXI-26 (2011). E. The City and the Successor Agency contend that Morgan Square is in breach of the Agreement and violation of the PBID Law by not providing certain accounting records and documentation to the City and by not taking steps to refund, upon expiration of the District, the remaining District Funds in Morgan Square's possession in accordance with PBID Law. Morgan Square disputes these contentions. F. On June 25. 2013, City and Successor Agency filed a lawsuit against Morgan Square in the Superior Court for the County of San Diego, identified as Case No. 37-2013- 00054606-CU-OR-CTL ("Litigation"), arising out of obligations and covenants under PBID Law and the Agreement, in order to preserve the status quo pending mediation. Mediation was 3 Stipulation for Settlement and (Proposed) Order Approving Good Faith Settlement 113 of 498 1 2 3 4 5 6 7 8 9 10 11 12 13 14 I5 16 17 18 19 20 21 22 23 24 25 26 27 28 unsuccessful and the Parties proceeded to litigation and the City was compelled to undertake pre-trial law and motion and discovery activity. G. On or about September 16, 2013, on the City's motion the Court issued a TRO and then on or about November 19, 2013, an injunction prohibiting Morgan Square from using the District funds other than for a specific use approved by the Court, that being payment for Court approved legal expenses incurred by Morgan Square. H. Without admitting any liability or fault, each of the Parties to this Settlement Agreement now desires to resolve all aspects of the Litigation among themselves. AGREEMENT NOW THEREFORE, in consideration of the foregoing and for good and valuable consideration the parties hereby agree as follows: 1. Settlement. (a) Morgan Square hereby acknowledges and agrees that this Settlement Agreement is subject to approval by the Successor Agency and the City, the Oversight Board of the City of National City ("Oversight Board"), and review and approval of the State of California Department of Finance (`Department of Finance"). In the event the Successor Agency and the City, the Oversight Board. and/or of the Department of Finance, or any of them, do not approve this Settlement Agreement, then the Settlement Agreement shall become null and void. (b) Morgan Square agrees to cooperate in all necessary steps to prepare a final audit report for the period from January 1, 2008 through and including June 30, 2015, This audit report is intended to be submitted to the City on or before April 1, 2016, for presentation, review, and approval at a public meeting. This will result in a separate analysis for any disbursements made by Morgan Square since the last audit by the Sonnenberg CPA firm, if any have been made. if none have been made the prior audit will satisfy this condition. (c) Within five (5) days of the final approval of the settlement by the Successor Agency and the City, the Oversight Board of the City of National City, and the Department of Finance, to the extent necessary, Morgan Square shalt pay all District Funds in the custody, 4 Stipulation for Settlement and (Proposed) Order Approving Good Faith Settlement 114 of 498 possession, or control of Morgan Square. over to the City to be distributed as refunds pursuant to the PB1D Law, specifically Streets and Highways Code section 36671. (d) Morgan Square shall deliver all remaining District Funds to the City to be distributed as refunds in accordance with the PBID Law and Streets and Highways Code section 36671. Except as otherwise expressly provided in this Agreement and that the City Of National City may be refunded assessments on properties owned by it for which it paid assessments, as provided by the Property and Business improvement District Law of 1994, the City Of National City will not retain, obtain. charge, or in any way keep or collect any amount whatsoever from the District Funds to be refunded to the Morgan Square District members pursuant to this Agreement. Nothing in this Agreement is intended to alter the outcome under State law for return of the District Funds. Any breach by the City Of National City of this provision shall be considered a material breach of the Agreement and shall release the Morgan Square District from its obligations herein under. (e) Execution of this Settlement Agreement shall not constitute a ratification of the acts of any of the Parties in connection with the District. 2. Dismissal of the Litigation. On June 25, 2013, the Successor Agency and the City were compelled to file the Litigation against Morgan Square after the latter failed to follow through on a negotiated settlement, and the City obtained an injunction to preserve the District Funds. The Parties hereby agree the Litigation shall be dismissed upon the Effective Date of the Release, defined below, or on a date determined by the Court within its discretion. 3. Release of Claims. (a) Scope of Releases. The Parties and each of them, by and for itself hereby acknowledges and agrees that the scope of the mutual release and discharge of claims recited in Sections 3(b) and (c) below shall be interpreted to the broadest extent permissible under law. (b) Effective Date of Release. The releases contained in this Settlement Agreement shall be contingent upon and shall not be effective until the "Effective Date of Release" which shall be when both of the following occur: (i) the City and the Successor 5 Stipulation for Settlement and (Proposed) Order Approving Good Faith Settlement 115 of 498 Agency approve the final audit and any related reports at a public hearing; and (ii) the expiration of all applicable times, with no claims lumina been filed, to challenge the administration of the District and to challenge distributions or refunds under the PBID Law and/or to seek and initiate refund claims. Upon the occurrence of the Effective Date of Release and provided that the Department of Finance does not thereafter disapprove of the Settlement Agreement, the Parties shall mutually release one another from all obligations and liabilities with respect to the matters that were raised within the Litigation only. (c) Mutual Release and Discharge of Claims. Effective only upon the Effective Date of Release, defined above, and provided that the Department of Finance does not thereafter disapprove of the settlement, and except for the obligations of the Parties under the terms of this Settlement Agreement, the Parties separately by and for itself, each freely and without coercion, fully and forever releases, acquits and discharges each other party hereto and their attorneys, sureties, agents, servants. representatives, employees, members, Council Members, officers, trustees, subsidiaries, affiliates, partners, predecessors, successors -in -interest, heirs, executors and assigns, and all persons acting by, through. under or in concert with them, of and from any and all past, present, or future claims, demands, obligations, actions, causes of action, damages, costs, attorney's fees, losses of service, expenses, liabilities, suits. and compensation of any kind or nature whatsoever, whether based on tort, contract, or other theory of recovery, claimed by any of them which arise from or relate to facts or events occurring on or before the date of this Settlement Agreement with respect to the Litigation only. The Parties expressly acknowledge and agree that this release shall extend to any and all claims, whether judicial, administrative or otherwise, including, without limitation, claims made with any court, commission, tribunal, board or administrative body with jurisdiction to consider such claims related to the Litigation. This release expressly extends to and bars any and all complaints, actions and/or proceedings, whether judicial or administrative, actually instituted by the Parties, or which could be instituted by any of the Parties, with respect to the Litigation. Nothing in this 6 Stipulation for Settlement and (Proposed) Order Approving Good Faith Settlement 116 of 498 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Settlement Agreement shall be construed to mean that any of the Parties is or are waiving any rights to enforce this Settlement Agreement. (d) Waiver of California Civil Code Section 1542. (i) Effective only upon the Effective Date of Release, defined above, and provided that the Department of Finance does not thereafter disapprove of the Settlement Agreement, the release and discharge specified in Section 2(c), above, shall be effective to bar all claims, damages, claims for disability benefits, personal injuries, claims for compensation, controversies, actions, causes of action, obligations, liabilities, costs, expenses, attorneys' fees and damages of any character, nature and kind, whether known or unknown, suspected or unsuspected. In furtherance of this intention, the Parties and each of them expressly waives and relinquishes any and all rights and benefits conferred on them by the provisions of Section 1542 of the California Civil Code. (ii) The Parties understand that California Civil Code Section 1542 provides as follows: A general release does not extend to claims which a creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or het settlement with the debtor. (iii) It is expressly understood and agreed by the Parties that the possibility of unknown claims exists and has been explicitly taken into account in determining the consideration to be given for this Settlement Agreement and that a portion of the consideration, having been bargained for with full knowledge of the possibility of such unknown claims, was given in exchange for the release and discharge of the matters, claims and/or rights covered by this Settlement Agreement. (iv) The Parties agree that if either or any of them hereafter commences, joins in, or in any manner seeks relief through any suit arising out of, based upon, or relating to any of the settled claims released hereunder. then he/she/it shall pay to the other parties, in addition 7 Stipulation for Settlement and (Proposed) Order Approving Good Faith Settlement 117 of 498 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 to any other damages caused to the other parties thereby, all attorneys' fees incurred by the other parties in defending or otherwise responding to said suit of settled claims. (v) This release shall not operate to release any claims the Parties may later have for the enforcement of the obligations created by this Settlement Agreement. (vi) The Court approving this settlement shall retain jurisdiction to enforce and interpret the terms of the settlement as necessary, as requested by either of the parties on an ex parte basis. 4. Representations and Warranties. (a) Representation of Comprehension. By entering into this Settlement Agreement, each party represents to the other that (i) each of them fully understands and accepts the terms of this Settlement Agreement; (ii) each of them has relied upon the legal advice of their attorneys or that they have freely and independently chosen not seek the advice of an attorney, (iii) each of them has had a full and ample opportunity to consult with any other professionals of their choice in connection with the rights and liabilities created by this Settlement Agreement; (iv) none of them has any questions with regard to the legal import of any term, word, phrase, or portion of this Settlement Agreement, or this Settlement Agreement in its entirety; and (v) each of there accepts the terms of this Settlement Agreement as written. (b) Representation of Approvals. (i) By the Successor Agency and the City. Except for the pending approval of the Settlement Agreement by the Successor Agency, Oversight Board, and Department of Finance. by entering into this Settlement Agreement, the Successor Agency and the City and the persons signing below on behalf of the Successor Agency and the City, each represents to Morgan Square that: (1) the persons signing below on behalf of the Successor Agency and the City are authorized to execute this Settlement Agreement on behalf of the Successor Agency and the City; and (2) this Settlement Agreement is binding on the Successor Agency and the City. 8 Stipulation for Settlement and (Proposed) Order Approving Good Faith Settlement 118 of 498 (ii) By Morgan Square. By entering into this Settlement Agreement, Morgan Square, and the person signing below on behalf of Morgan Square, each represents to the Successor Agency and City that: (1) this Settlement Agreement has been duly approved by all necessary board or member actions and no further or additional approvals are needed; (2) the person signing below on behalf of Morgan Square is authorized to execute this Settlement Agreement on behalf of Morgan Square; and (3) this Settlement Agreement is binding on Morgan Square. 5. Compromise. This Settlement Agreement is the result of a compromise and shall never at any time or for any purpose be considered an admission of liability or responsibility on the part of any party hereto, nor shall the payment of any sum of money in consideration for the execution of this Settlement Agreement constitute or be construed as an admission of any liability whatsoever by any of the Parties hereto. 6. General Provisions. (a) Attorneys' Fees. The Parties hereto acknowledge and agree that the Successor Agency and the City shall recover their reasonable attorneys' fees and costs in the reduced amount of $54,OO6.92, incurred from having to bring the Litigation resulting in this Settlement Agreement, including without limitation, the negotiation, drafting, and execution of this Settlement Agreement, and all matters connected therewith. The City shall be allowed to pay itself these fees from the funds turned over to it by Morgan Square, upon approval of the audit on or before June 30, 2016. In the event any action or proceeding is brought to enforce this Settlement Agreement, the prevailing party shall be entitled to reasonable attorneys' fees and costs against the non -prevailing parties, in addition to all other relief to which that party or those parties may be entitled. The "prevailing party" shall be that party who obtains substantially the result sought, whether by further settlement. dismissal, or judgment. (b) Construction of Settlement Agreement. This Settlement Agreement is the product of negotiation and preparation by and among each party hereto and their respective 9 Stipulation for Settlement and (Proposed) Order Approving Good Faith Settlement 119 of 498 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 attorneys. Accordingly, all Parties hereto acknowledge and agree that this Settlement Agreement shall not be deemed prepared or drafted by one party or another, or the attorneys for one party or another, and this Settlement Agreement shall be construed accordingly. (c) Binding Effect. This Settlement Agreement shall be binding upon and inure to the benefit of the Parties hereto, and their respective heirs, executors, administrators, irustors, trustees, beneficiaries, predecessors, successors. assigns, partners, partnerships. parents, subsidiaries, affiliated and related entities, officers, directors, principals, agents, servants, employees, representatives, and all persons, firms, plaintiffs, defendants and/or persons or entities connected with each of them, including, without limitation, their insurers, sureties, attorney& consultants and experts. (d) Severability. If any provision or any part of any provision of this Settlement Agreement shall for any reason be held to be invalid, unenforceable or contrary to public policy or any law, then the remainder of this Settlement Agreement shall not be affected thereby and shall remain in full force and effect. (e) Entire Agreement. This Settlement Agreement contains the entire understanding among the Parties to this Settlement Agreement with regard to the Litigation. District and/or the District Funds, and is intended to be and is a final integration thereof. There are no representations, warranties, agreements, arrangements, undertakings, oral or written. between or among the Parties hereto relating to the terms and conditions of this Settlement Agreement that are not fully expressed herein. (i) Incorporation of Recitals. The Recitals to this Settlement Agreement are hereby incorporated into this Settlement Agreement by this reference. (g) Facsimile Signatures. Facsimile or electronically transmitted copies of signatures shall be acceptable and treated as original signatures. (h) Counterparts. This Settlement Agreement may be executed in counterparts and each executed counterpart shall be as effective as the original. I0 Stipulation for Settlement and (Proposed) Order Approving Good Faith Settlement 120 of 498 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (i) Further Assurances. All Parties agree to cooperate fully and execute any and all supplementary documents and take all additional actions which may be necessary or appropriate to give full force and effect to the basic terms and intent of this Settlement Agreement. G) Time of the Essence. Time is of the essence for the full execution of this Settlement Agreement and implementation of each and every provision hereof. (k) Signatories' Representations and Warranties. Each signatory to this Settlement Agreement on behalf of any party does hereby personally represent and warrant that he or she has the authority to execute this Settlement Agreement on behalf of, and fully bind, each party whom such individual represents or purports to represent. (1) Waiver of Right to Collaterally Attack or Set Aside Settlement Agreement. The Parties hereby waive all rights of appeal, motions for new trial, motions for judgments notwithstanding the verdict, motions to set aside a judgment of dismissal, if any, and any and all other direct and/or collateral attacks on this Settlement Agreement. This Settlement Agreement is and shall be a full adjudication, settlement and resolution of all claims and defenses in the Litigation as of the date of this Settlement Agreement; and, except for the covenants expressly provided in this Settlement Agreement, this Settlement Agreement discharges all claims and defenses presented by the Litigation. This Agreement shall bind successors. heirs and assigns of all of the Parties. (m) Covenant Not to Sue. The Parties covenant and agree never to commence. aid. or in any way or in any manner prosecute against each other any legal action or proceeding based upon the matters released and settled in this Settlement Agreement and/or to commence any legal action or proceeding based upon any other claim, demand, cause of action, obligations. damage or liability arising out of or related to the matters settled, released and compromised in this Settlement Agreement. This covenant does not extend to any legal action or proceeding brought for the purpose of enforcing this Settlement Agreement. 11 Stipulation for Settlement and (Proposed) Order Approving Good Faith Settlement 121 of 498 2 3 4 5 6 7 e 9 I0 11 12 13 I4 IS 16 I 19 19 20 21 22 23 24 25 26 27 20 7. The Parties agree that this settlement is entered into in good faith and request the court to issue an order finding the settlement to have been in good faith and barring any action by any third parties concerning this good faith settlement and the matters that were raised or that could have been raised in this litigation, under the provisions of Code of Civil Procedure section B77.6. TN WITNESS WHEREOF, the Parties hereto have caused this Settlement Agreement to be executed as of the date first written above. CffY: The City` =tie I City, a municipal co . • •ration By: Print Name: Ron I4orrison Its: Mayor Dated: March 9 , 2016 SUCCESSOR AGENCY: The Successor Agency to the Community Development Commission as the National City Redevelo;Z,• . Agency By: Print Name: Rnr� Mnrfl ort Its: Chairman Dated: ITrh 9 , 2016 MORGAN SQUARE: Mjc.. a California nonprofit corporation $Y� Print del, -- Dated: mcLr C , e , 20T6 , President 12 Stipulation for Settlement and (Proposed) Order Approving Good Faith Settlement 122 of 498 2 3 4 5 6 7 8 9 to It 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 78 APPROVED AS TO FORM AND CONTENT IIASKINS & SOCIATE, APC I I/1 Dated: Dated: O 1 5 /ill CHRIST Dated: , 2016 By: ,2016 By: Steve Has ' , Esq. Attorne • ndants Morgan Square Inc., a California non-profit corporation and National Ci organ Square, Inc. CITY . 2016 By: Clay : ' ilva. Esq. Attorney Plaintiffs City of National City and the Successor Agency to the Community Development Commission as the National City Redevelopment Agency t Charles B. Christensen, Esq. Joel B. Mason, Esq. Attorneys for Plaintiffs City of National City and the Successor Agency to the Community Development Commission as the National City Redevelopment Agency ORDER Based upon the foregoing stipulation for settlement and good cause appearing therefore, the Court hereby APPROVES the Parties Stipulation for Settlement and Good Faith Settlement Agreement; IT IS ORDERED THAT: 1. ALL FUNDS IN THE POSSESSION OF DEFENDANTS [IN THE AMOUNT OF $256,589.00 ] BE TURNED OVER TO THE CITY UPON THE APPROVAL OF THE SETTLEMENT BY THE DEPARTMENT OF FINANCE; 2. THE CITY BE ALLOWED TO REIMBURSE ITSELF FOR THE PAYMENT OF ITS ATTORNEY'S FEES IN THE AMOUNT OF $54,006.92, 13 Stipulation for Settlement and (Proposed) Order Approving Good Faith Settlement 123 of 498 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3. UPON THE PAYMENT OF ALL FUNDS TO THE CITY THAT THE PRELIMINARY INJUNCTION ISSUED IN THIS CASE BE AND IS HEREBY DISSOLVED; AND 4. THE COURT HEREBY RETAINS JURISDICTION TO ENFORCE THE SETTLEMENT AND THE ORDERS OF THE COURT; 5. EACH OF THE PARTIES ARE HEREBY ORDERED TO PERFORM ALL ACTS AGREED TO BY THE RESPECTIVE PARTIES WITHIN THE TIME CONSTRAINTS REFERRED TO IN THE SETTLEMENT. IT 1S SO ORDERED. Dated: 312616 14 Hon. Gregory W. Pollack JUDGE OF THE SUPERIOR COURT Stipulation for Settlement and (Proposed) Order Approving Good Faith Settlement 124 of 498 DECLARATION OF DITAS YANIANE 1. DITAS YAMANE, declare and state as follows: 1. 1 am the bookkeeper of Defendant Morgan Square. Inc. in the above -captioned (natter. In my position I have firsthand knowledge of the activity and expenses on Defendant Morgan Square, Inc. s accounts and funds. The fbllowing declarations are ofnly own personal knowledge and if sworn as a witness, I could competently testify thereto. 2. I have reviewed the pertinent records of the Defendant Morgan Square, Inc. accounts and funds, in particular pertinent to the status and activity of the Business Improvement District account funds at issue in the above -captioned litigation. I have also reviewed the Transmittal Letter dated July 31, 2014, from Leonard C. Sonnenberg, CPA. and its attachments and enclosures, including the Morgan Square, Inc. Audited Financial Statements, dated June 30. 2014, and the Independent Auditor's Report dated July 31, 2014, a true and correct copy of which is attached hereto as Exhibit 1. 3. I hereby certify that there has been no activity related to or expenses paid from the pertinent Defendant Morgan Square, Inc., accounts since the audit reflected by the aforementioned Transmittal Letter and attachments and enclosures from Mr. Leonard C. Sonnenberg, CPA. I declare under penalty of perjury under tile laws of'the State of California that the foregoing is true and correct. Dated this ern day ofJune 2016_ at National City, California. DITAS YAMANE 125 of 498 IYIORGAN SQUARE, INC. July 3.1, 2014 Sonennberg & Company, CPAs 5190 Governor Dr. Suite'201 San Diego, CA 92122 This representation letter is provided in connection with your audit of the fmancial statements of Morgan Square, Inc, which comprise the statements of net assets as of June 30, 2014, and the related statements of activities -cash basis for the 6 1/2 years then ended, and the related notes to the financial statements, for the purpose of expressing an opinion as to whether the financial statements are presented fairly, in all material respects, in accordance with the cash basis of accounting. Certain representations in this letter are described as being Limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement. An omission or misstatement that is monetarily small in amount could be considered material as a result of qualitative factors. We confirm,to the best of our knowledge and belief, as of July 31, 2014, the following representations made to you during your audit. Financial Statements • We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter dated February 19, 2014 including our responsibility for the preparation and fair presentation ofthe financial statements. • The financial statements referred to above are fairly presented in conformity with cash basis of accounting. • We acknowledge our responsibility for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. • We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.. • Significant assumptions we used in making accounting estimates, including those measured at fair value, are reasonable. • Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of cash basis accounting. • All events subsequent to the date of the financial statements and for which cash basis accounting requires adjustment or disclosure have been adjusted or disclosed. • The effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements .as a whole. A list of the uncorrected misstatements is attached to the representation letter. • The effects of all known actual or possible litigation, claims, and assessments have been accounted for and disclosed in accordance with cash basis accounting • Material concentrations have been appropriately disclosed in accordance with cash basis. • Guarantees, whether written or oral, under which the organization is contingently liable, have been properly recorded or disclosed in accordance with cask basis accounting. Information Provided • We have provided you with: o Access to all information, of which we are aware, that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation, and other matters. 126 of 498 o Additional information that you have requested from us for the purpose of the audit. o Unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence. • All material transactions have been recorded in the accounting records and are reflected in the financial statements. • We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. o We have no knowledge of any fraud or suspected fraud that affects the organization and involves: o tvlanagement, o Employees who have significant roles in internal control, or o Others where the fraud could have a material effect on the financial statements. • We have no knowledge of any allegations of fraud or suspected fraud affecting the organization's financial statements communicated by employees, former employees, grantors, regulators, or others. ■ We have no knowledge of any instances of noncompliance or suspected noncompliance with laws and regulations whose effects should be considered when preparing financial statements. • We are aware of any pending or threatened litigation, claims, or assessments or unasserted claims or assessments that are required to be accrued or disclosed in the financial statements in accordance with the cash basis of accounting, and we have consulted a lawyer concerning such litigation, claims, or assessments. • We have disclosed to you the identity of the organization's related parties and all the related party relationships and transactions of which we are aware. • The organization has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral. • We are responsible for compliance with the laws, regulations, and provisions of contracts and grant agreements applicable to es; and we have identified • and disclosed to you all laws, regulations and provisions of contracts and grant agreements that we believe have a direct and material effect an the determination of financial statement amounts or other financial data significant to the audit objectives. Morgan Square, Inc. is an exempt organization under Section 501(oX6) of the Internal Revenue Code. Any activities of which we are aware that would jeopardize the Organization's tax-exempt status, and all activities subject to tax onunrelated business income or excise or other tax, have been disclosed to you. All required filings with tax authorities are up-to-date. • We acknowledge our responsibility for presenting the schedule of functional expenses and the schedule of temporarily restricted net assets in accordance with cash basis and we believe the schedules, including its form and content, is fairly presented in accordance with cash basis. The methods of measurement and presentation of the schedules have not changed from those used in the prior period, -and we have disclosed to you any significant assumptions or interpretations underlying the measurement and presentation of the supplementary information. • We understand that as part of the audit, the auditor o Analyzed andlor updated the temporarily restricted revenue accounts, o Prepared certain adjusting entries based on these analyses and schedules. o We have reviewed the schedules and entries provided by the auditor. We understand and approve the entries prepared by the auditor. • No events have occurred subsequent to the statement of financial position dateand through the date of this letter that would require adjustment to, or disclosure in, the financiaents. 127 of 498 rionnenbergl & Company CPA + AUDTT + TAEEB R@68AVL sTUDDSB� Sonnenberg & Company, CPAs A Professional Corporation 5190 Governor Drive, Suite 201, San Diego, California 92122 Phone: (858) 457-5252 • (800) 464-4HOA • Fax: (858) 457-2211 • (800) 303-4FAX Sonnenberg & Company 40 `` YEARS r�zwcTTc� si Leonard C. Sonnenberg, CPA Morgan Square, Inc. Audited Financial Statements June 30, 2014 TABLE OF CONTENTS Page No. Independent Auditor's Report 1-2 Financial Statements Statement of Assets and Net Assets — Cash Basis 3 Statement of Revenue and Expenses — Cash Basis 4 Statement of Functional Expenses — Cash Basis 5 Notes to the Financial Statements 6-8 Supplementary Information Schedule of Payments Received from City of National City And Deposited to Morgan Square Bank Accounts 9 Schedule of Cash Transactions 10-14 Member: The American Institute of Certified Public Accountants and California Society of Certified Public Accountants 128 of 498 'Sonnenberg' & Company CPA AIIDITB • TAMS RB9SRVR BT WW Sonnenberg & Company, CPAs A Professional Corporation 5190 Governor Drive, Suite 201, San Diego, California 92122 Phone: (858) 457-5252 • (800) 464-4HOA • Fax: (858) 457-2211 • (800) 308-4FAX onnenber 1 & Company 40 YEARS IN FRACTICS Leonard C. Sonnenberg, CPA INDEPENDENT AUDITOR'S REPORT To the Board of Directors Morgan Square, Inc. We have audited the accompanying fmancial statements of Morgan Square, Inc. (a nonprofit organization), which comprise the statement of assets and net assets —cash basis as of June 30, 2014, and the related statement of revenue and expenses —cash basis for the 6 '/a year period from January 1, 2008 through June 30, 2014, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the cash basis of accounting as described in Note 2; this includes determining that the cash basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial -statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the fmancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1 Member: The American Institute of Certified Public Accountants A rl California Society of Certified Public Accountants 129 of 498 Morgan Square, Inc. Opinion Independent Auditor's Report Page 2 of 2 In our opinion, the financial statements referred to above present fairly, in all material respects, the assets and net assets — cash basis of Morgan Square, Inc. as of June 30, 2014, and its revenue and expenses — cash basis for the b'lz year period then ended in accordance with the cash basis of accounting as described in Note 2. Basis of Accounting We draw attention to Note 2 of the financial statements, which describes the basis of accounting. The financial statements are prepared on the cash basis of accounting, which is a basis of accounting other than U.S. generally accepted accounting principles. Our opinion is not modified with respect to that matter. Other Matter Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The schedules of 1) City of National City Payments Received and Deposited to Morgan Square Bank Accounts on page 9 and 2) Cash Transactions on pages 10 to 14 are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with U.S. generally accepted auditing standards. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole, Going Concern The District currently has no source of revenues, and the ultimate disposition of funds on hand has not been determined. July 31, 2014 Sonnenberg & Company, CPAs 2 130 of 498 Morgan Square, Inc. STATEMENT OF ASSETS AND NET ASSETS - CASH BASIS June 30, 2014 With Comparative Totals for January 1, 2008 June 30, 2014 Jan, 1, 2008 ASSETS: Cash - Union Bank (Operating) $ 32,116 21,455 CD - First Future / Cal Coast 102,836 MM - Pacific Western Bk 28 MM - USA Fed CU 3,014 MM - USA Fed CU 5 105 MM - USA Fed CU 218 50,766 MM - Seacoast Commerce Bk 129,633 MM - Seacoast Commerce Bk 81,224 MM - Seacoast Commerce Bk 10,351 TOTAL ASSETS NET ASSETS: Unrestricted TOTAL NET ASSETS $ 256,589 $ 175,162 $ 256,589 $ 175,162 256,589 $ 175,162 The Accompanying Notes are an Integral Part of the Financial Statements 3 131 of 498 Morgan Square, Inc. STATEMENT OF REVENUE AND EXPENSES - CASH BASIS For the 6 and 1/2 Years Ended June 30, 2014 Revenue: City of National City - Assessments $ 492,338 Interest Income 16,454 Total revenue 508,792 Expenses: Program Services 339,312 Supporting Services 88,053 Total expenses 427,365 Change in net assets Net assets, beginning of period Net assets, end of period $ 81,427 175,162 $ 256,589 The Accompanying Notes are an Integral Part of the Financial Statements 4 132 of 498 Morgan Square, Inc. STATEMENT OF FUNCTIONAL EXPENSES - CASH BASIS For the 6 and 1/2 Years Ended June 30, 2014 Expenses: Arbitration - AAA Audit - Sonnenberg - 2007 Bank charges, fees, etc. Consulting - Inzunza Consulting - Marza Insurance - Hartford - D&O Legal - Haskins Maintenance - Rodriguez Maintenance - Plaza Mgmt Maintenance - Urban Corp SD Lighting - Universal Management - Yamane National City Foundation Program - Miscellaneous Sculpture - Becker Stone/Tile - Valencia Total Expenses Program Support Total Services Services Expenses $ $ 2,538 $ 2,538 3,600 3,600 760 760 15,200 15,200 6,000 6,000 3,500 3,500 25,856 25,856 251,500 251,500 17,250 17,250 54,165 54,165 4,060 4,060 30,600 30,600 2,000 2,000 2,337 2,337 5,000 5,000 3,000 3,000 $ 339,312 $ 88,053 $ 427,365 The Accompanying Notes are an Integral part of the Financial Statements 5 133 of 498 Morgan Square, Inc. Notes to Financial Statements For Years Ended June 30, 2014 Note 1. Organization and Nature of Activities The Morgan Square, Inc. (the District, also known as "Morgan Square District" or National City Downtown Property Business Improvement District") was incorporated on December 13, 2004 as a non-profit public benefit corporation. The District operated under an agreement with the Community Development Commission of the City of National City, CA. The District includes 153 parcels representing 96 property owners. Operations began, essentially, in May 2005 with the initial receipt of assessment revenues (See Note 4). The primary objectives and purposes of this corporation are to bring about the revitalization of the District and its surrounds in the City of National City and to bring about the increased economic well-being of residents, employees, and businesses within the District. In addition, the District strives to promote business improvements and economic development within the District through activities which contribute to the neighborhood and well-being of the Morgan Square Community. Morgan Square, Inc. is led by a group of significant, small and long-time business and property owners, who pay special assessments in the District. The members of the Board of Directors are composed of four officers and up to nine members who are all business -owners and/or property owners within the District. Morgan Square's activities ensure maintenance including litter control, illegal dump removal, graffiti control, sidewalk safety hazard monitoring, lighting service, tree maintenance, and security. Most of these services were provided under contracts with Ezekiel Rodriguez Maintenance and with Urban Corps of San Diego County. Income Taxes Morgan Square, Inc. is exempt from federal and state income taxes under Section 501(c)(6) of the Internal Revenue Code and section 23701(e) of the California Revenue and Taxation Code. Accordingly, no provision for income taxes is included in the accompanying financial statements. Management is not aware of any uncertain income tax positions that might jeopardize its tax status. Note 2. Summary of Significant Accounting Policies Basis of Presentation Morgan Square's financial statements have been prepared on the cash basis of accounting. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues, and expenses as of the dates and for the periods presented. 6 134 of 498 Morgan Square, Inc. Notes to Financial Statements For the 6 '/z Years Ended June 30, 2014 Note 2. Summary of Significant Accounting Policies (continued) Cash and cash equivalents Morgan Square considers all highly liquid invesli'lents available for current use with an initial maturity of three months or less to be cash equivalents. Accounts Receivable Accounts receivable are receivables from governmental agencies. Morgan Square has no accounts receivable as of June 30, 2014. Concentration of Credit Risk The primary revenue consists of assessments received from the City of National City. Concentration of credit risks with respect to revenue are limited, as the majority of Morgan Square's revenues consist of fees from contracts granted by the City of National City. Date of Management Review Morgan Square's management has evaluated subsequent events through July 31, 2014, the date the financial statements were available to be issued. Management is not aware of any subsequent events that would require adjustment to, or disclosures in, the financial statements. Note 3. Assessment Revenue The District's income is derived from property tax assessed on properties within the District. The assessment year is July 1 through June 30 of each year. Morgan Square received $492,338.46 during the period from January 1, 2008 through April 10, 2010. Thereafter, all assessment payments ceased. Note 4. Commitments and Contingencies Morgan Square's contract with the former Community Development Commission is subject to inspection and audit by the appropriate agencies. No provisions for the possible disallowance of program costs have been reflected on its financial statements. 7 135 of 498 Morgan Square, Inc. Notes to Financial Statements For the 6'A Years Ended June 30, 2014 Note 5. Litigation Nature of the Litigation: San Diego Superior Court Case No. 37-2013-00054606-CU-OR-CTL was filed by the City of National City against Morgan Square, Inc. on June 25, 2013. The case seeks to obtain all funds held by Morgan Square to be distributed according to the City's interpretation of the State law concerning leftover funds under the control of such Districts upon the end of the their authorized term of operation. Progress of the Matter: The matter is pending. A status conference is scheduled for August 8, 2014, before Judge Prager of the Central Division of the San Diego Superior Court. Evaluation of the Outcome: An evaluation of an unfavorable outcome and an estimate of potential loss cannot be made as of the date of this report. Note 6. Unpaid Liabilities Morgan Square has certain unrecorded liabilities, which have not been included in the accompanying cash -basis financial statements, as follows. Attorney Fees and expenses — Haskins & Associates $ 16,764.95 Audit Fees - Sonnenberg & Company, CPAs, APC 10,000.00 Directors & Officers Insurance — The Hartford 530.00 Total Unpaid Liabilities $ 27,294.95 Total Cash and Equivalents as of June 30, 2014 $256,589.27 Remaining Balance $229,294.32 8 136 of 498 Morgan Square, Inc. Schedule of Payments Received from City of National City and Deposited to Morgan Square Bank Accounts January 1, 2008 through April 10, 2010 Year Payments USA CU Union Bk Pac West 2008 38,676.51 38,676.51 66,697.28 66,697.28 5,187.46 5,187.46 4,220.12 4,220.12 6,951.35 6,951.35 69,822.87 69,822.87 404.80 404.80 23,182.73 23,182.73 2009 126,701.85 126,701.85 5,722.28 5,617.52 2,116.93 91,021.34 43,015.04 2,642.48 2010 357.90 357.90 5,722.28 5,617.52 2,116.93 91,021.34 43, 015.04 2,642.48 Totals 492,338.46 105,373.79 236,829.08 150,135.59 See Auditor's Report 9 137 of 498 Morgan Square, Inc. Jan 2008 - June 30, 2014 Audltor:LCS 07/31/14 CASH TRANSACTIONS Beg Bal Deposit # Trans -In Interest # Trans -Out Expense End Bal Union Bk 21,455.03 238,829.08 180,109.17 - 406,277.68 32,115.60 FirstFut/Cal Coast 102,835.59 - 4,521.82 107,357.41 - - PacWest 2052 7,734.45 107,357.41 74.92 115,164.78 2.00 - PacWest 2458 5,722.28 414,336.15 142.04 420,000.00 172.00 28.47 PacWest CD's - 150,000.00 1,211.83 151,211.83 - PacWest CD's 136,678.86 51,408.88 1,371.80 189,459,54 0.00 Neighb 0980 - 338,396.12 326.03 335,707.82 3,014.33 Neighb 5080 - 251,050.66 2,306.40 253,357.06 Neighb CDs 50,000.00 1,414.27 51,408.88 5.39 USA Sav 1 Navy 105.00 105,373.79 200.04 105,678.83 0.00 USA 6351 Navy - 83,642.14 75.51 83,500.00 217.65 USA CD 6689 43,633.84 - 1,859.85 45,493.69 - USA CD 6690 7,132.42 - 337.20 7,469.62 0.00 Sec Bk 2652 250,000.00 1,151.09 251,151.09 Sec Bk 5435 120,000.00 75.05 120,047.80 27.25 - Seacoast 2509 129,144.00 489.37 - - 129,633.37 Seacoast 2312 - 230,357.06 896.64 150,000.00 30.00 81,223.70 Seacoast 9715 - 10,350.76 - - 10,350.76 AttyTrustalc 150,000.00 - 129,144.00 20,856.00 - Totals 175,161.88 492,338.46 2,516,152.35 16,453.86 2,516,152.35 427:364.93 256,589.27 Total NC -> 492,338.46 TB Union Bk Date Beg Bal Deposit Trans -In Interest Trans -Out Expense End Bal 2007 21,455.03 21,455.03 508 21,455.03 18 25,000.00 48,455.03 NC 308 46,455.03 5,187.46 51,642.49 NC 508 51,642.49 6,951.35 58,593.84 NC 608 58,593.84 69,822.87 128,416.71 NC 708 128,416.71 404.80 128,821.51 NC 708 128,821.51 4,220.12 133,041.63 NC 708 133,041.63 23,182.73 150,618.10 5,606.26 5,606.26 5,606.26 fr USA S 35 109 5,606.26 16 25,000.00 30,606.26 NC 109 30,606.26 126,701,85 157,308.11 209 157,308.11 103,738.13 53,569.98 NC 410 53,569.98 357.90 53,927.88 misc 410 53,927.88 10.50 53,938.38 1210 53,938.38 53,938.38 fr Sec Pac Bk 911 53,938.38 10 15,000.00 68,938.38 911 68,938.38 67,675.68 1,262.70 2012 1,262.70 1,262.70 fr Sec Pac Bk 112 1,262.70 19 109.17 1,371.87 fr Neigh Bk 212 1,371.87 34 20,000.00 21,371.87 fr Neigh Bk 812 21,371.87 17 9,000.00 30,371.87 fr Neigh Bk 1212 30,371.87 17 6,000.00 36,371.87 1212 36,371.87 33,930.00 2,441.87 1212 2,441.87 10.00 2,451.87 misc 2013 2,451.87 50.00 2,501.87 113 2,501.87 11 36,000.00 38,501.87 413 38,501.87 11 44,000.00 82,501.87 82,501.87 50,386.27 32,115.60 1213 32,115.60 32,115.60 314 32,115.60 32,115.60 614 32,115.60 32,115.60 Subtotal 21,455.03 236,899.58 180,109.17 406,348.18 32,115.60 reclass refunds (70,50) (70.50) Totals 21,455.03 236,829.08 180,109.17 - 406,277.68 32,115.60 # Note: Numbers indicate transfers in and transfers out See Auditor's Report 10 138 of 498 Morgan Square, Inc. Jan 2008 - June 30, 2014 Auditor:LCS 07/31/14 CASH TRANSACTIONS FirstFutlCal Coas Date Beg Bal Deposit Trans -In Interest Trans -Out Expense End Bal to PW 2052 1207 102,835.59 307 102,835.59 1,222.34 607 104,057.93 1,016.93 907 105,074.86 655.54 1207 105,730.40 644.52 308 106,374.92 611.02 508 106,985.94 371.47 1 107,357.41 (0.00) Totals 102,835.59 4,521.82 107,357.41 102,835,59 104,057.93 105,074.86 105,730.40 106,374.92 106,985.94 (0.00) (0.00) PacWest 2052 Date Beg Bal Deposit Trans -In Interest Trans -Out Expense End Bal 508 509 7,734.45 7,734.45 Fr FF-CalCoast 509 7,734.45 1 107,357.41 115,091.86 609 115,091.86 41.55 115,133.41 to CD 2305 609 115,133.41 2 100,000.00 15,133.41 1209 15,133.41 17.91 15,151.32 610 15,151.32 15.46 2.00 15,164.78 to PW 2458 610 15,164.78 4 15,164.78 0.00 0.00 0.00 Totals 7,734.45 107,357.41 74.92 115,164.78 2.00 PacWest 2458 Date Beg Bal Deposit Trans -In Interest Trans -Out Expense End Bal 509 - NC 509 5,722.28 31 58,600.00 5.00 64,217.28 to CD 2306 509 64,217.28 3 50,000.00 14,217.28 1209 14,217.28 14,217.28 fr 2305 710 14,217.28 5 100,840.96 115,058.24 fr 2308 710 115,058.24 6 50,370.87 165,429.11 fr 2052 710 165,429.11 4 15,164.78 7.30 180,601.19 180,601.19 18.55 2.00 180,617.74 CD 2485 710 180,617.74 7 50,364.67 230,982.41 CD 2486 710 230,982.41 8 50,364.67 281,347.08 CD 2487 710 281,347.08 9 88,730.20 370,077.28 370,077.28 57.88 370,135.16 To Sec 810 370,135.16 58.31 32 120,000.00 6.00 250,187.47 To Sec 810 250,187.47 33 250,000.00 75.00 112.47 1210 112.47 84.00 28.47 614 28.47 28.47 Totals - 5,722.28 414,336.15 142.04 420,000.00 172.00 28.47 PacWest CD's Date Beg Bal Deposit Trans -In Interest Trans -Out Expense End Bal CD 2305 609 2 100,000.00 481.39 to Pac West 710 359.57 5 100,840.96 CD 2306 609 3 50,000.00 215.98 to Pac West 710 154.89 6 50,370.87 - Totals - 15.6,000.00 1,211.83 151,211.83 PacWest CD's Date Beg Bal Deposit Trans -In Interest Trans -Out Expense End Bal CD 2485 709 50,000.00 123.29 to Pac West 710 241.38 7 50,364.67 CD 2486 709 50,000.00 123.29 to Pac West 710 241.38 8 50,364.67 CD 2487 709 36,678.86 31 51,408.88 217.20 to Pac West 710 425.26 9 88,730.20 Totals 136,678.86 51,408.88 1 L371.80 189,459.54 # Note: Numbers indicate transfers in and transfers out 11 139 of 498 Morgan Square, Inc. Jan 2008 - June 30, 2014 CASH TRANSAC'T1ONS Neighb 0980 fr Sec Pac 5435 1211 - 1211 105,039.06 to Union Bk 812 105,054.89 to Union Bk 1212 96,054.89 1212 90,054.89 to Union Bk 113 90,310.87 to Union Bk 413 54,310.87 fr Neigh 5080 413 10,310.87 to Seacoast 413 243,716.69 to Seacoast 413 13,360.09 Date Beg Bal Deposit Trans -In Interest Auditor:t.CS 07/31/14 Trans -Out Expense End Bal Neighb 5080 fr Sec Pac 2652 to Union Bk to Neigh 0980 Neighb CDs 1213 3,009.79 314 3,010.59 614 3,012.45 Totals 16 105,039.06 15.83 255.98 17 9,000.00 17 6,000.00 11 11 36,000.00 44,000.00 12 233,357.06 48.76 0.46 23 230,357.06 0.46 23 10,350.76 0.80 1.86 1.88 338,396.12 326.03 335,707.82 105,039.06 105,054.89 96,054.89 90,054.89 90,310.87 54,310.87 10,310.87 243,716.69 13,360.09 3,009.79 3,010.59 3,012.45 3,014.33 3,014.33 Pate Beg Bal Deposit 1211 212 251,164.17 1212 231,164.17 232,935.49 232,935.49 413 233,357.06 Totals Trans -in Interest Trans -Out Expense End Bat 22 251,050.66 113.51 1,771.32 421.57 251,050.66 2,306.40 34 20,000.00 12 233,357.06 253,357.06 251,164.17 231,164.17 232,935.49 232,935.49 233,357.06 0.00 0.00 Pate Beg Bal Deposit 708 50,000.00 709 50,685.79 1210 1211 5.39 614 5.39 Totals Trans -In Interest 30 50,000.00 685.79 723.09 31 5.39 Trans -Out Expense End Bal 50,000.00 50,685.79 51,408.88 5.39 5.39 5.39 50,000.00 1,414.27 51,408.88 5.39 USA Sav / Navy Date Beg Bal NC NC to USA S35 to Union Bk To Neigh CD Deposit Trans -In Interest Trans -Out Expense End Bal 1207 105.00 108 105.00 38,676.51 208 38,785.35 66,697.28 308 105,511.22 408 105,551.44 708 105,590.37 708 74,911.54 708 50,000.00 Totals 105.00 105,373.79 3.84 28.59 40.22 38.93 21 88.46 18 30 200.04 30,678.83 25,000.00 50,000.00 105,678.83 105.00 38,785.35 105,511.22 105,551.44 105,590.37 74,911.54 50,000.00 0.00 USA S351 Navy Date Beg Bal Deposit Trans -In Interest Trans -Out Expense End Bal fr USA Sav 708 - 208 30,678.83 to Union Bk 109 30,736.73 fr USA Sav 309 5,736.73 fr USA Sav 309 5,748.38 fr USA Sav 309 13,206.35 fr USA Sav 309 13,287.91 309 58,700.04 to Pac West CD 409 58,714.42 1209 214.42 1210 215.18 614 217.38 Totals 21 30,678.83 15 15 14 14 11.65 7,457.97 81.56 45,412.13 83,642.14 57.90 16 25,000.00 14.38 31 58,500.00 0.76 2.20 0.27 75.51 83,500.00 30,678.83 30,736.73 5,736.73 5,748.38 13,206.35 13,287.91 58,700.04 58,714.42 214.42 215.18 217.38 217.65 217.65 # Note: Numbers indicate transfers in and transfers out 12 140 of 498 Morgan Square, Inc. Jan 2008 - June 30, 2014 Auditor:LCS 07/31/14 CASH TRANSACTIONS USA CD 6689 Date Beg Bel Deposit Trans -In Interest Trans -Out Expense End Bal 2007 43,633.84 43,633.84 808 43,633.84 993.17 44,627.01 708 44,627.01 253.45 44,880.46 309 44,880.46 323.18 45,203.64 to USA S35 309 45,203.64 290.05 14 81.56 45,412.13 to USA S35 309 45,412.13 14 45,412.13 Totals 43,633.84 1,859.85 45,493.69 • USA CD 6690 Date Beg Bal Deposit Trans -In Interest Trans -Out Expense End Bal 1207 7,132.42 7,132.42 608 7,132.42 196.93 7,329.35 908 7,329.35 41.30 7,370.65 1208 7,370.65 53.08 7,423.73 309 7,423.73 45.89 7,469.62 to USA S35 309 7,469,62 15 11.65 7,457.97 to USA S35 309 7,457.97 15 7,457.97 0.00 0.00 0.00 Totals 7,132.42 337.20 7,469.62 0.00 Sec Bk 2652 Date Beg Bal Deposit Trans -In Interest Trans -Out Expense End Bal Fr PacWest 2458 810 33 250,000.00 250,000.00 810 250,000.00 406.07 250,406.07 1210 250,406.07 745.02 251,151.09 to Neigh 1211 251,151.09 22 251,050.66 100.43 to Union bk 1211 100.43 19 100.43 (0.00) (0.00) (0.00) Totals 250,000.00 1,151.09 251,151.09 Sec Bk 5435 Dag Beg Bal Deposit Trans -In Interest Trans -Out Expense End Bat 1207 808 Fr PacWest 2458 810 - 810 120,000.00 1210 119,972.75 to Union bk 911 119,994.28 1211 104,994.28 to Neigh 0980 1211 105,047.80 to Union bk 112 8.74 0.00 0.00 Totals 32 120,000.00 120,000.00 27.25 119,972.75 21.53 119,994.28 10 15,000.00 104,994.28 53.52 105,047.80 16 105,039.06 8.74 19 8.74 0.00 0.00 0.00 120,000.00 75.05 120,047.80 27.25 # Note: Numbers indicate transfers in and transfers out 13 141 of 498 Morgan Square, Inc. Jan 2008 - June 30, 2014 Audltor:LCS 07/31/14 CASH TRANSACTIONS Seacoast2509 Date Beg Bal Deposit Trans -In Interest Trans -Out Expense End Bal 1207 - frfHaskins Tr 1013 21 129,144.00 129,144.00 1213 129,144.00 144.97 129,288.97 314 129,288.97 182.90 129,471.87 414 129,471.87 53.22 129,525.09 614 129,525.09 108.28 129,633.37 Totals 129,144.00 489.37 129,633.37 Seacoast 2312 Date fr Neigh 0980 to Haskins Trust Beg Bal Deposit Trans -In Interest Trans -Out Expense End Bat 413 513 230,426.81 613 230,593.22 713 230,754.37 813 230,921.01 813 230,954.44 913 80,954.44 1213 80,980.64 314 81,062.75 414 81,142.74 614 81,169.42 23 230,357.06 69.75 166.41 161.15 166.64 63.43 26.20 82.11 79.99 26.68 54.28 20 150,000.00 230,426.81 230,593.22 230,754.37 230,921.01 30.00 230,954.44 80,954.44 80,980.64 81,062.75 81,142.74 81,169.42 81,223.70 Totals 230,357.06 896.64 150,000.00 30.00 81,223.70 Seacoast 9715 Date Beg Bal Deposit Trans -In Interest Trans -Out Expense End Bal fr Neigh 0980 413 - 23 10,350.76 10,350.76 1213 10,350.76 10,350.76 10,350.76 10,350.76 614 10,350.76 10,350.76 Totals 10,350.76 - 10,350.76 Atty Trust a/c Date Beg Bal Deposit Trans -In Interest Trans -Out Expense End Bal to Haskins Trust 813 - Legal Expense 1013 20,856.00 Totals 20 150,000.00 21 129,144.00 20,856.00 20,856.00 - # Note: Numbers indicate transfers in and transfers out 150,000.00 129,144.00 20,856.00 See Auditor's Report 14 142 of 498 RESOLUTION NO. 2016 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE FINAL AUDIT REPORT FOR THE MORGAN SQUARE BUSINESS IMPROVEMENT DISTRICT FOR THE PERIOD OF JANUARY 1, 2008 THROUGH AND INCLUDING JUNE 30, 2014 WHEREAS, the Morgan Square Property and Business Improvement District (the "District") was formed on August 3, 2004, pursuant to the California Property and Business Improvement District Law of 1994 (Sts & Hwy Code Section 36600 et seq., "PBID Law") to provide for the maintenance, operations, and servicing of certain improvements in the District, which generally includes parcels with frontage on National City Boulevard and Roosevelt Avenue between 2rd Street and 12th Street, and on 8th Street between Interstate 5 and D Avenue; and WHEREAS, on March 8, 2005, the Community Development Commission ("CDC") and National City Morgan Square, Inc. ("Morgan Square") entered into an Agreement for the administration and operation of the District pursuant to the Management District Plan and PBID Law; and WHEREAS, pursuant to the terms of the Agreement, the City transferred approximately $1,163,000 collected from the levy of assessments in the District to Morgan Square, and in return, Morgan Square was to utilize these funds as set forth in the Agreement for activities and services in the District; and WHEREAS, the District expired pursuant to its own terms in 2010 in accordance with PBID Law, and no action was taken by any of the Parties to renew the District; and WHEREAS, on June 25, 2013, the City and the Successor Agency filed suit against Morgan Square for breach of the Agreement and violation of the PBID Law because Morgan Square did not provide certain accounting records and documentation to the City, and upon expiration of the District, had not taking steps to refund the remaining District Funds in Morgan Square's possession to the assessed property owners; and WHEREAS, the Parties negotiated a Settlement Agreement and Release, which was approved by the City Council on December 15, 2015, and by the Oversight Board of the Successor Agency on April 20, 2016, and subsequently by the California Department of Finance with the following terms: 1. Morgan Square shall prepare and submit a final audit to the City. 2. Morgan Square shall return the funds to the City. 3. The City will refund the funds in accordance with PBID Law. 4. The Successor Agency and the City shall recover $54,006.92 in attorney's fees, payable from the funds; and WHEREAS, Morgan Square prepared a Final Audit Report for the period of January 1, 2008 through and including June 30, 2014 that concluded there was $256,589 in cash and equivalents as of June 20, 2014; and WHEREAS, a declaration was provided to the City certifying there has been no activity related to expenses paid since the time of the audit statement. 143 of 498 Resolution No. 2016 — Page Two NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves the final audit report for the Morgan Square Business Improvement District for the period of January 1, 2008 through and including June 30, 2014. PASSED and ADOPTED this 161" day of August, 2016. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor 144 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 145 The following page(s) contain the backup material for Agenda Item: Warrant Register #1 for the period of 06/29/16 through 07/05/16 in the amount of $2,860,739.05. (Finance) 145 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 AGENDA ITEM NO. ITEM TITLE: 'Warrant Register #1 for the period of 06/29/16 through 07/05/16 in the amount of $2,860,739.05. (Finance) PREPARED BY: K. Apalategui PHONE: 619-336-4572 DEPARTMENT: Fina C APPROVED BY: EXPLANATION: Per Government Section Code 37208, attached are the warrants issued for the period of 06/29/16 through 07/05/16. Consistent with Department of Finance practice, listed below are all payments above $50,000. Vendor CSAC Exs Ins Authority Health Net Inc Kaiser Foundation HP Paradise Creek Housing Public Emp Ret System Check/Wire Amount 324191 90,561.00 324226 71,339.53 324235 188,913.62 324263 88,507.00 6302016 364,186.90 Explanation Premium, EIA Admin & Public Entity Fee Health Ins R1192A /July 2016 Insurance Active / July 2016 Sewer Demo & Repair Cost Emerg / Eng Service Period 06/07/16 — 06/20/16 FINANCIAL STATEMENT: ACCOUNT NO. Warrant total $2,860,739.05 APPROVED: APPROVED: ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Ratify warrants totaling $2,860,739.05 BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: Warrant Register #1 146 of 498 1/4 PAYEE A&B SAW & LAWNMOWER AAIR PURIFICATION SYSTEMS ACE UNIFORMS & ACCESSORIES INC ACEDO, I AFFORDABLE BUTTONS COM AFLAC ALDEMCO ALL FRESH PRODUCTS AMERICAN SOCIETY OF CIVIL ENGINEERS ANDERSON, E ANGEL PETALS APWA SAN DIEGO CHAPTER BARTEL ASSOCIATES LLC BAUER COMPRESSORS BEARD, P BECK, L BISHOP, R BOEGLER, C BOYD JR, P BSN SPORTS CAPF CALIFORNIA LAW ENFORCEMENT CAMEON, C CARRILLO, R CITY OF SAN DIEGO COLE, L COMMUNITY ROWING OF SD INCORPORATED CONDON,D CORPUZ, T COUNTY OF SAN DIEGO CPCA CSAC EXCESS INS AUTHORITY CSAC EXCESS INS AUTHORITY CSAC EXCESS INS AUTHORITY CSAC EXCESS INS AUTHORITY D MAX ENGINEERING INC D MAX ENGINEERING INC DANESHFAR, Z DANIELS TIRE SERVICE DAY WIRELESS SYSTEMS DELTA DENTAL DELTA DENTAL DELTA DENTAL INSURANCE CO DEPARTMENT OF JUSTICE DESROCHERS, P DI CERCHIO, A DILLARD, S DREDGE,J EISER III, G 4,44- NAIIIIONAL CITY orcinipolosittp WARRANT REGISTER #1 7/5/2016 DESCRIPTION CHK NO DATE AMOUNT CARBIDE CHAIN, 25 FT / FIRE 32)1160 7/5/16 1,074.60 WIRELESS RECEIVER / PW 324161 7/5/16 837.26 EXTRICATION COVERALL / FIRE 324162 7/5/16 1,598.44 RETIREE HEALTH BENEFITS 1 JUL 2016 324163 7/5/16 160.00 PINBACK BUTTONS / MAYOR'S OFFICE 324164 7/5/16 308.80 AFLAC ACCT BDM36 / JULY 2016 324165 7/5/16 620.62 CONSUMABLES- NUTRITION CENTER 324166 7/5/16 1,594.52 CONSUMABLES- NUTRITION CENTER 324167 7/5/16 626.35 AWARD PLAQUES / ENG 324168 7/5/16 30040 RETIREE HEALTH BENEFITS / JUL 2016 324169 7/5/16 110,00 FLOWERS/MISS NC PAGEANT 2016 324170 7/6/16 381,43 AWARD PLAQUES / ENG 324171 7/5/16 880.00 ACTUARIAL CONSULTING SERVICES / FINANCE 324172 7/5/16 1,160.00 M7 HUD ASSEMBLY W/O MOUNTING / FIRE 324173 7/5/16 8,327.61 RETIREE HEALTH BENEFITS / JUL 2016 324174 7/5116 70.00 RETIREE HEALTH BENEFITS / JUL 2016 324175 7/5/16 140.00 RETIREE HEALTH BENEFITS / JUL 2016 324176 7/5/16 110.00 RETIREE HEALTH BENEFITS / JUL 2016 324177 7/5/16 260.00 RETIREE HEALTH BENEFITS / JUL 2016 324178 7/5/16 145.00 STIGA LEGACY TABLE / CSD 324179 7/5/16 3,628.34 FIRE LTD / JULY 2016 324180 7/5/16 780.00 PD LTD / JULY 2016 324181 7/5/16 2,082.50 REIMB: ED REIMBURSEMENT / PD 324182 7/5/16 280.00 RETIREE HEALTH BENEFITS 1 JUL 2016 324183 7/5/16 290.00 GPS LOGIC MODEM / FIRE 324184 7/5/16 894.00 RETIREE HEALTH BENEFITS / JUL 2016 324185 7/5/16 165.00 FACILITY EQUIPMENT / AQUATIC CENTER 324186 7/5/16 5,000.00 RETIREE HEALTH BENEFITS / JUL 2016 324187 7/5/16 280.00 RETIREE HEALTH BENEFITS /JUL 2016 324188 7/5/16 140.00 MAIL PROCESSING SERVICES / APRIL 2016 324189 7/5/16 1,808.84 MEMBERSHIP DUES / PD 324190 7/5/16 1,764.00 PREMIUM, EIA ADMIN & PUBLIC ENTITY ADMIN FEE 324191 7/5/16 90,561,00 PREMIUM, OPTIONAL EXCESS LIABILITY PROGRAM 324192 7/5/16 21,418.00 PREMIUM, MASTER CRIME PROGRAM 324193 7/5/16 4,971.00 PREMIUM, CYBER LIABILITY PROGRAM 324194 7/5/16 1,343.00 T&A #90101: SENIOR CITIZENS APT BLDG 324195 7/5/16 1,540.00 TEA #90113; SUPER STAR CAR WASH 324196 7/5/16 927.20 RETIREE HEALTH BENEFITS / JUL 2016 324197 7/5/16 250.00 MOP#76986 TIRES / PW 324198 7/5/16 170.13 RADIO SERVICE AGREEMENT / FIRE 324199 7/5/16 843.75 DENTAL INS PREMIER / JULY 2016 324200 7/5/16 15,960.66 COBRA DENTAL INS / MAY 2016 324201 7/5/16 178.98 PM! DENTAL INS / JULY 2016 324202 7/5/16 2,810.94 NEW EMP FINGERPRINT RESULTS -MAY 2016 324203 7/5116 420.00 RETIREE HEALTH BENEFITS / JUL 2016 324204 7/5/16 110.00 RETIREE HEALTH BENEFITS / JUL 2016 324205 7/5/16 70.00 RETIREE HEALTH BENEFITS / JUL 2016 324206 7/5/16 480.00 RETIREE HEALTH BENEFITS / JUL 2016 324207 7/5/16 250.00 RETIREE HEAL 147 of 498 UL 2016 324208 7/5/16 250.00 2/4 PAYEE ESGIL CORPORATION FABINSKI, D FEDEX FIFIELD, K FIRE ETC GELSKEY,K GIBBS JR, R GONZALES, M GRAINGER GROSSMAN PSYCHOLOGICAL HAINES & COMPANY INC HANSON, E HARLAN, M HAUG, S HEALTH NET HEALTH NET HEALTH NET HEALTH NET INC HERNANDEZ, R HODGES, B HONDO, E HUNTER'S NURSERY INC IBARRA, J INDEPENDENT FORENSIC SERVICES JAMES, R JUNIEL, R KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS KIMBLE, R KONICA MINOLTA KRONOS INC LANDA, A LIMFUECO, M LOPEZ, T MASON'S SAW MATIENZO, M MC CABE, T MEDIFIT COMMUNITY SERVICES LLC MEDINA, R MELLADO DESIGNS MES CALIFORNIA METRO AUTO PARTS DISTRIBUTOR MICRONICHE INC MINER, D MORRISON, R MUNOZ, L MYERS, B NACOLE NATIONAVC1n7 c ca$raai►'r? ;f7) WARRANT REGISTER #1 7/5/2016 DESCRIPTION PLAN CHECK SERVICES / FIRE RETIREE HEALTH BENEFITS / JUL 2016 EXPRESS SHIPMENT/ HR RETIREE HEALTH BENEFITS / JUL 2016 PRO WARRINGTON 3003 STATION BOOTS / FIRE RETIREE HEALTH BENEFITS /JUL 2016 RETIREE HEALTH BENEFITS /JUL 2016 RETIREE HEALTH BENEFITS / JUL 2018 MOP 65179. SUPPLIES POLICE DEPT PRE-EMP EVALUATIONS- MAY 2016/ PD LEASE SERVICE FY 2017 / POLICE RETIREE HEALTH BENEFITS / JUL 2016 RETIREE HEALTH BENEFITS / JUL 2016 RETIREE HEALTH BENEFITS / JUL 2016 FULL NETWORK 57135A /JULY 2016 HEALTH INSURANCE N5992F / JULY 2016 HEALTH INS N5992A / JULY 2016 HEALTH INS R1192A / JULY 2016 RETIREE HEALTH BENEFITS / JUL 2016 RETIREE HEALTH BENEFITS / JUL 2016 RETIREE HEALTH BENEFITS / JUL 2016 MOP-#45719 HORTICULTURAL ITEMS RETIREE HEALTH BENEFITS / JUL 2016 FORENSIC SVC / CS #16-2668 RETIREE HEALTH BENEFITS / JUL 2016 RETIREE HEALTH BENEFITS / JUL 2016 INSURANCE ACTIVE / JULY 2016 RETIREES INS/ JULY 2016 HD H S A INS /JULY 2016 RETIREE HEALTH BENEFITS / JUL 2016 COPIER EQUIPMENT LEASE ANNUAL LICENSING / FY 2017 / POLICE RETIREE HEALTH BENEFITS /JUL 2016 RETIREE HEALTH BENEFITS /JUL 2016 TRANSLATION SERVICES f 6/23/2016 MOP#45729 SUPPLIES RETIREE HEALTH BENEFITS / JUL 2016 RETIREE HEALTH BENEFITS / JUL 2016 MANAGEMENT FEE / COMMUNITY SERVICES RETIREE HEALTH BENEFITS / JUL 2016 T-SHIRTS W/ CITY LOGO / MAYOR'S OFFICE 300434 PULLEY SWIVEL 1.1 INCH / PW MOP#75943 AUTO SUPPLIES CSAC EXPORT RETIREE HEALTH BENEFITS / JUL 2016 REIMB: GRAPHIC CERAMIC TILE W/ LOGO REIMB: DECORATE STAGE/MISS NC 2016 RETIREE HEALTH BENEFITS /JUL 2016 CONFERENCE 148 of 498 M. BAILEY cHK NO DATE AMOUNT 324209 7/5/16 1,948.50 324210 7/5/16 220.00 324211 7/5/16 25.75 324212 7/5/16 540.00 324213 7/5/16 2,338.05 324214 7/5/16 115.00 324215 7/5/16 120.00 324216 7/5/16 480.00 324217 7/5/16 381.72 324218 7/5/16 550.00 324219 7/5/16 894.84 324220 7/5/16 135.00 324221 7/5/16 500.00 324222 7/5/16 120.00 324223 7/5/16 5,334.29 324224 7/5/16 651.54 324225 7/5/16 543.45 324226 7/5/18 71,339.53 324227 7/5/16 400.00 324228 7/5/16 200.00 324229 7/5/16 110.00 324230 7/5/16 91.80 324231 7/5/16 780.00 324232 7/5/16 1,250.00 324233 7/5/16 140.00 324234 7/5/16 50.00 324235 7/5/16 168,913.62 324236 7/5/16 7,572.29 324237 7/5/16 6,879,71 324238 7/5/16 300.00 324239 7/5/16 1,710.26 324240 7/5/16 12,899.24 324241 7/5/16 155.00 324242 7/5/16 160.00 324243 7/5/16 210.00 324244 7/5/16 410.54 324245 7/5/16 100.00 324246 7/5/16 280.00 324247 7/5/16 23,423.08 324248 7/5/16 105.00 324249 7/5/16 254.88 324250 7/5/16 8,903.30 324251 7/5/16 50.45 324252 7/5/16 500.00 324253 7/5/16 580.00 324254 7/5/16 907.84 324255 7/5/16 141.32 324256 7/5/16 140.00 324257 7/5/16 1,100.00 } 4"* C:AtiFQRNIA. 41- 3/4 PAYEE NATIONAL CITY CHAMBER NATIONAL EMBLEM INC NOTEWARE, 0 NOWDOCS INTERNATIONAL INC PADRE JANITORIAL SUPPLIES PARADISE CREEK HOUSING PARTNER PAUU JR, P PEASE JR, D PENSKE FORD PETERS, S POST, R PRO BUILD PROFORCE LAW ENFORCEMENT PROGRESSIVE SOLUTIONS INC PROJECT PROFESSIONALS CORP PRUDENTIAL OVERALL SUPPLY OUESTYS SOLUTIONS RAY, S RELIANCE STANDARD ROARK, L ROE, V RUIZ, J SAFRAN MORPHOTRUST SAN DIEGO GAS & ELECTRIC SDG&E SERVATIUS, J SHORT, C SILVERADO AVIONICS SMITH, J STAPLES BUSINESS ADVANTAGE STINNETT, R STRASEN, W SYSCO SAN DIEGO INC THE LINCOLN NATIONAL LIFE INS THOMSON REUTERS WEST TIPTON, B TOPECO PRODUCTS U S BANK U 5 HEALTHWORKS UNITED ROTARY BRUSH CORP VERRY, L VILLAGOMEZ, J WHITE, J WILLY'S ELECTRONIC SUPPLY WOOD, P ZENGOTA, V SDG&E SWEETWATER AUTHORITY NATIONAL air` L-:..po ; ;moo WARRANT REGISTER #1 7/5/2016 DESCRIPTION MEMBERSHIP BREAKFAST 1 M RIOS STITCHED BORDER / POLICE RETIREE HEALTH BENEFITS / JUL 2016 GREEN VOID BOTTOM CHECKS JANITORIAL SUPPLIES- NUTRITION SEWER DEMO & REPAIR COST EMERGENCY / ENG RETIREE HEALTH BENEFITS / JUL 2016 RETIREE HEALTH BENEFITS / JUL 2016 MOP#49078 AUTO SUPPLIES RETIREE HEALTH BENEFITS / JUL 2016 RETIREE HEALTH BENEFITS / JUL 2016 MOP 45707 HAMMER TACKER / FIRE MF22115 GLK MAG 40 SW G22/35 / PD LICENSING RENEWAL/ MIS THEATRE DEMOLITION PROJECT MOP#45742 LAUNDRY SERVICES / PW ANNUAL LICENSING RENEWAL / MIS RETIREE HEALTH BENEFITS 1 JUL 2016 VOLUNTARY LIFE INS / JULY 2016 RETIREE HEALTH BENEFITS 1 JUL 2016 RETIREE HEALTH BENEFITS / JUL 2016 RETIREE HEALTH BENEFITS / JUL 2016 NEW EMP FINGERPRINT TEST/MAY 2016 GAS & ELECTRIC - NUTRITION CENTER GAS & ELECTRIC UTILITIES RETIREE HEALTH BENEFITS / JUL 2016 RETIREE HEALTH BENEFITS /JUL 2016 KENWOOD VHR / FIRE RETIREE HEALTH BENEFITS / JUL 2016 MOP 45704 OFFICE SUPPLIES / HR REIMB: SUPP/ST BALDRICK'S SHAVE-A-THON/PD RETIREE HEALTH BENEFITS / JUL 2016 CONS U MABLES/FOOD - NUTRITION LIFE & AD&D, STD, LTD INS / JUL 2016 LEGAL PUBLICATIONS - UPDATED CA CODES RETIREE HEALTH BENEFITS / JUL 2016 MOP#63849 SUPPLIES CREDIT CARD EXPENSES 1 PD PRE-EMP PHYSICAL MOP#62683 AUTO PARTS RETIREE HEALTH BENEFITS 1 JUL 2016 RETIREE HEALTH BENEFITS / JUL 2016 RETIREE HEALTH BENEFITS I JUL 2016 MOP#45763 SUPPLIES REIMB: FIELD PERMIT / ENG RETIREE HEALTH BENEFITS / JUL 2016 GAS AND ELECTRIC UTILITIES / S A WATER UTILITIES / S A CHK NO DATE AMOUNT 324258 7/5/16 15.00 324259 7/5/16 1,698.77 324260 7/5/16 120.00 324261 7/5/16 366.24 324262 7/5/16 102.47 324263 7/5/16 88,507.00 324264 7/5/16 340.00 324266 7/5/16 140.00 324267 7/5/16 182.85 324268 7/5/16 290.00 324269 7/5/16 260.00 324270 7/5/16 1,106.14 324271 7/5/16 5,072.03 324272 7/5/16 24,304.18 324273 7/5/16 8,126.43 324274 7/5/16 205.46 324275 7/5/16 14,401.80 324276 7/5/16 190.00 324277 7/5/16 2,806.23 324278 7/5/16 135.00 324279 7/5/16 120,00 324280 7/5/16 310.00 324281 7/5/16 22.00 324282 7/5/16 2,578.45 324283 7/5/16 24,407.77 324284 7/5/16 340.00 324285 7/5/16 300.00 324286 7/5/16 3,89223 324287 7/5/16 320.00 324288 7/5/16 849.10 324289 7/5/16 84.14 324290 7/5/16 135.00 324291 7/5/16 5,205.86 324292 7/5/16 9,620.96 324293 7/5/16 284.49 324294 7/5/16 250.00 324295 7/5/16 52.34 324296 7/5/16 2,023.25 324297 715/16 395.00 324298 7/5/16 696.15 324299 7/5/16 280.00 324300 7/5/16 480.00 324301 7/5116 230.00 324302 7/5/16 131.97 324303 7/5/16 150.00 324304 7/5/16 300.00 324305 7/5/16 106.62 324306 7/5/16 54.64 149 of 498 4/4 +},* CAPFO.R.NIA.�+ igsnoN :cirr WARRANT REGISTER #1 7/5/2016 PAYEE DESCRIPTION CHK NO DATE AMOUNT A!P Total 725,229.57 WIRED PAYMENTS PUBLIC EMP RETIREMENT SYSTEM SERVICE PERIOD 06/07/16 - 06/20/16 6302016 6/30/16 364,186.90 SECTION 8 HAPS Start Date End Date 6/29/2016 7/5/2016 799,458.82 PAYROLL Pay period Start Date End Date Check Date 14 6/21/2016 7/4/2016 7/13/2016 971,863.78 GRAND TOTAL $2,860,739.05 150 of 498 Certification IN ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE HEREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS AND DEMANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. a/1114 -1474 MARK ROBERTS, FINANCE LESLIE DEESE, CITY MANAGER FINANCE COMMITTEE RONALD J. MORRISON, MAYOR -CHAIRMAN JERRY CANO, VICE -MAYOR ALEJANDRA SOTELO-SOLIS, MEMBER MONA RIOS, MEMBER ALBERT MENDIVIL, MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER IS AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY THE CITY COUNCIL ON THE 16th OF AUGUST, 2016. AYES NAYS ABSENT 151 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 152 The following page(s) contain the backup material for Agenda Item: Warrant Register #2 for the period of 07/06/16 through 07/12/16 in the amount of $232,627.99. (Finance) 152 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 AGENDA ITEM NO. ITEM TITLE: Warrant Register #2 for the period of 07/06/16 through 07/12/16 in the amount of $232,627.99. (Finance) PREPARED BY: K. Apalategui DEPARTMENT: F'nanc PHONE: 619_336-4572 APPROVED BY: EXPLANATION: Per Government Section Code 37208, attached are the warrants issued for the period of 07/06/16 through 07/12116. There are no payments above $50,000.00 FINANCIAL STATEMENT: ACCOUNT NO. Warrant total $232,627.99 APPROVED: APPROVED: ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: !Ratify warrants totaling $232,627.99; BOARD 1 COMMISSION RECOMMENDATION: N/A ATTACHMENTS: Warrant Register #2 153 of 498 1/3 PAYEE ADAMS, D CAMACHO,J CITY ATTORNEYS ASSOCIATION DOUGHERTY, J DURAN,D ETZLER, J FE D EX HERNANDEZ,A KAISER FOUNDATION HEALTH PLANS LASER SAVER INC LOZANO, M MEJIA, A MENDOZA III, S NES CALIFORNIA PECK, B PHILLIPS, W PRO BUILD RAMIREZ, 0 SAN DIEGO MIRAMAR COLLEGE SAN DIEGO MIRAMAR COLLEGE SANDAG SHANAHAN, M STANICH, C STAPLES BUSINESS ADVANTAGE STEVENS, C STINNETT, R SULLIVAN, C THOMSON REUTERS BARCLAYS VILLARIASA, S WILLY'S ELECTRONIC SUPPLY ABLE PATROL & GUARD LIEU, C MIDWEST TAPE STAPLES BUSINESS ADVANTAGE KEYSER MARSTON ASSOCIATES INC 4 IMPRINT INC ACADEMI TRAINING CENTER LLC ACE UNIFORMS & ACCESSORIES INC ADAMSON POLICE PRODUCTS AIRGAS WEST ALDEMCO ASSI SECURITY INC AT&T SOCKS AWARDS INC BOOT WORLD BRIAN COX MECHANICAL INC CITY OF NATIONAL CITY CLAIMS MANAGEMENT ASSOCIATES COMMERCIAL AQUATIC SERVICE INC f,CAIIFORN1A -,- NATIONAL pity WARRANT REGISTER #2 7/12/2016 DESCRIPTION CHK NO DATE AMOUNT REIMB: ACADEMY INSTRUCTOR! PD 324307 7/12/16 1D2.10 REIMB: CANINE HANDLER / PD 324308 7/12/16 120.16 ANNUAL MEMBERSHIP 324309 7/12/16 1,050.00 REIMB: ROT/CPT - PD 324310 7/12/16 101.00 REIMB: DUI / PD 324311 7/12/16 82.32 REIMS: 24-HR PERISHABLE SKILLS / PD 324312 7/12116 102.92 SHIPMENT/ ENG 324313 7/12/16 35.50 REIMB: COPS WEST / PR 324314 7/12/16 127.17 RETIREES INSURANCE / JUL 2016 324315 7112116 20,771.11 MOP 45725 TONER CARTRIDGE 1 MIS 324316 7)12/16 386,74 REIMB: SFST & ARIDE / PD 324317 7/12/16 230.97 REIMB: BASIC DISPATCHER / PD 324318 7/12/16 300.00 ED REIMBURSEMENT 324319 7/12/16 225.00 CUSTOM WHITE'S BOOTS 324320 7/12/16 5,555.69 REIMB: NARCOTICS INVESTIGATIONS/PD 324321 7/12/16 80,80 REIMB: INVESTIGATION INTERVIEW/PD 324322 7/12/16 105.00 MOP 45707 MISC SUPPLIES / HOUSING 324323 7/12)16 102.97 REIMB: SUPERVISORY COURSE / PD 324324 7/12/16 704.16 TUITION: CPT / PD 324325 7/12/16 46.00 TUITION: CPT / PD 324326 7/12116 23.00 MEMBER AGENCY & CRIMINAL ASSESSMENT 324327 7/12/16 12,755.00 REIMB: DRUG EVALUATION / PD 324328 7/12/16 120.96 REIMB: 24-HR PERISHABLE SKILLS/ PD 324329 7/12/16 14292 MOP 45704 OFFICE SUPPLIES / FINANCE 324330 7/12/16 1,846:83 REIMS: ADV TRAFFIC COLLISION / PD 324331 7/12/16 252.32 REIMB: INVESTIGATION INTERVIEW/PD 324332 7/12/16 105.00 REIMB: MEDIA RELATIONS / PD 324333 7/12/16 56.82 ANNUAL RENEWAL OF BARCLAYS 324334 7112116 170.00 REIMB: SERGEANTS SUPERVISORY/PD 324335 7/12/16 580.38 MOP 45763 MISC SUPPLIES / MIS 324336 7/12/16 1,347.57 SECURITY GUARD SERVICE / LIBRARY 324337 7112/16 3,482.50 MILEAGE REIMBURSEMENT / LIBRARY TRAINING 324338 7/12/16 44.70 DVD'S/AUDIO BOOKS - LIBRARY 324339 7/12/16 4,304.40 MOP #45704 - SUPPLIES f LIBRARY 324340 7/12/16 176.63 SUMMARY REPORT - PALM PLAZA 324341 7/12/16 1,040.00 DELUXE EVENT TENT -FULL COLOR / PD 324342 7/12/16 1,347.84 INDOOR RANGE RENTAL / PD 324343 7/12/16 400.00 SEWINGS ON PATCHES / POLICE 324344 7/12/16 752.02 EQUIPMENT FOR POLICE DEPARTMENT 324345 7/12/16 14,300.82 MOP#45714 SUPPLIES / PW 324346 7/12/16 101.48 CONSUMABLES- NUTRITION CENTER 324347 7/12/16 427.16 CITY WIDE SECURITY REPAIRS 324348 7112/16 135.00 PHONE SERVICES / 5/21/16 - 6/21/16 324349 7/12116 1,37726 PURPLE HEART - MEDAL OF COURAGE - PD 324350 7/12/16 465.70 MOP#64096 SAFETY APPAREL 324351 7/12/16 250.00 CITY WIDE HVAC / PW 324352 7/12/16 186A0 PETTY CASH REPLENISHMENT / MAY 2016 324353 7/12/16 1,243.31 5,940.00 PURCHASE OF 154 of 498 hL SUPPLIES 324355 7/12/16 3,137.83 2/3 PAYEE COX COMMUNICATIONS CXTEC DANIELS TIRE SERVICE EBSCO SUBSCRIPTION ENPING INVESTMENTS LLC EXPRESS PIPE AND SUPPLY CO INC FAT PIPE NETWORKS FERGUSON ENTERPRISES INC GALLS INC GRAINGER GTC SYSTEMS INC HONEYWELL INTERNATIONAL INC INNOVATIVE CONSTRUCTION KIMLEY HORN AND ASSOC INC LEFORTS SMALL ENGINE REPAIR MAINTEX INC MEDIFIT COMMUNITY SERVICES LLC METRO AUTO PARTS DISTRIBUTOR METRO FIRE & SAFETY NALPAK GROUP NATIONAL EMBLEM INC OFFICE SOLUTIONS BUSINESS ORKIN PACIFIC AUTO REPAIR PENSKE FORD PEREZ, C PERRY FORD POWERSTRIDE BATTERY CO INC PRO BUILD PRUDENTIAL OVERALL SUPPLY S & J BUILDERS & RESTORATION SAN DIEGO HYDRAULICS SAN DIEGO POLICE EQUIPMENT SDG&E STAPLES BUSINESS ADVANTAGE SUPERIOR READY MIX SWEETWATER AUTHORITY SYMBOLARTS, LLC THE LIGHTHOUSE INC TIERRA WEST ADVISORS INC TODD PIPE & SUPPLY LLC VERIZON WIRELESS Z A P MANUFACTURING INC CHRISTENSEN & SPATH LLP KANE BALLMER & BERKMAN OPPER & VARCO LLP THE LAW OFFICES OF EDWARD Z KOTKIN C.A.L1 IORNiA..•-,+ NATIONAL CIS WARRANT REGISTER #2 7/12/2016 DESCRIPTION HK ivO INTERNET SERVICE / JUNC 2016 324356 CISCO CATALYST 3650 48 PORT / MIS 324357 MERCHANDISE - TIRES 324358 LEARNING EXPRESS SUBSCRIPTION RENEWAL/LIB 324359 REFUND / PLAN CHECK AND TDIF FEES 324360 PLUMBING PARTS & MATERIALS / PW 324361 2U REPLACEMENT BOX/ MIS MOP#45723 Sl1PPLIES / PW FA240 ORG CAT TOURNIQUET / PD MOP#65179 SUPPLIES / PW NETWORK ENGINEERING SERVICES / MAY 2016 FUSES / PW DIVISION STREET PROJECT EL TOYON LAS PALMAS BIKE PROJECT FRONT HANDLE / PW JANITORIAL SUPPLIES -FACILITIES MANAGEMENT FEE / APRIL 2016 / CSD MOP#75943 SUPPLIES / PW FIRE EXTINGUISHER SYSTEM / PW LM REV LEATHERMAN REV KIT / PD CORPORAL CHEVRON WITH STAR / PD RAVING BIG & TALL SERIES CHAIR / PW CITY WIDE PEST MAINTENANCE SMOG CERTIFICATION/REPAIRS R&M CITY VEHICLES REGISTRATION / INTERMEDIATE BUDGET / FIN MOP#45703 AUTO EQUIPMENT SALES TAX PENDING / PW MOP#45707 SUPPLIES MOP#45742 LAUNDRY CITY WIDE GENERAL BUILDING & REPAIRS DRIVE MOTOR / PW FED-LE12700-C 12 GA 00 BUCK, 9-PLT / PD GAS & ELECTRIC UTILITIES MOP 46704. OFFICE SUPPLIES / PLANNING COLD MIX ASPHALTS/TACK OIL WATER SERVICE UTILITIES XPS3287 NATIONAL CITY PD BADGE FRONT GRILLE SIREN / PW PROFESSIONAL SERVICES / MAY 2016 CITY WIDE PLUMBING MATERIALS CELLULAR SERVICE / 5/24/16 - 6/23/16 STREET SIGNS / PW LEGAL / WESTSIDE TOD / $ A LEGAL / CENTRO PURCHASE 1 S A LEGAL / ED VILLAGE/GENERAL / S A LEGAL / OVERSIGHT BOARD / S A PATE AMOUNT 7/12/16 519.56 7/12/16 17,797.70 7/12116 1,454.55 7/12/16 7,900.00 7/12/16 30,409.59 7/12/16 145.79 324362 7/12/16 4,110.00 324363 7/12/16 853.66 324364 7/12/16 480.67 324365 7/12/16 270.36 324366 7/12/16 2,437.50 324367 7/12/16 432.66 324368 7/12/16 661.50 324369 7/12/16 19,978,60 324370 7/12/16 87.21 324371 7/12/16 842.19 324372 7/12/16 3,275.68 324373 7/12/16 86.26 324374 7/12/16 175.00 324375 7/12/16 499.49 324376 7/12/16 690.09 324377 7/12/16 667.08 324378 7/12/16 416.50 324379 7/12/16 830.96 324380 7/12/16 593.62 324381 7/12/16 269.00 324382 7/12/16 33.24 324383 7/12/16 3.35 324384 7/12/16 392.70 324385 7/12/16 427.99 324386 7/12/16 1,743,67 324387 7/12/16 1,633.70 324388 7/12/16 302.81 324389 7/12/16 356.02 324390 7/12/16 175.80 324391 7/12/16 311.04 324392 7/12/16 11,471.52 324393 7/12/16 490.00 324394 7/12/16 2,332.24 324395 7/12/16 600.00 324396 7/12/16 391.67 324397 7/12/16 368.24 324398 7/12/16 1,336,46 324399 7/12/16 2,360.00 324400 7/12/16 292.25 324401 7/12/16 227.50 324402 7/12/16 207.98 155 of 498 AJP Total 208,046.36 3/3 PAYCE WIRED PAYMENTS ARCO BUSINESS SOLUTIONS CAt; FO, _NIA 011- iT Cirir 4-43411 1 CbspppATFA WARRANT REGISTER 42 7/12/2016 DESCRIPTION FUEL FOR CITY FLEET JUNE 2016 CHK NO DATE AMOUNT 401679 7/11/16 24,581.63 GRAND TOTAL $ 232,627.99 156 of 498 Certification IN ACCORDANCE W I'I'I-I SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE HEREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS AND DEMANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. 1/4-14(Al MARK ROBERTS, FINANCE LESLIE DEESE, CITY MANAGER FINANCE COMMITTEE RONALD J. MORRISON, MAYOR -CHAIRMAN JERRY CANO, VICE -MAYOR ALEJANDRA SOTELO-SOLIS, MEMBER MONARIOS, MEMBER ALBERT MENDIVIL, MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER 1S AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY THE CITY COUNCIL ON THE 16th OF AUGUST, 2016. AYES NAYS ABSENT 157 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 158 The following page(s) contain the backup material for Agenda Item: Warrant Register #3 for the period of 07/13/16 through 07/19/16 in the amount of $3,498,058.40. (Finance) 158 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 AGENDA ITEM NO. ITEM TITLE: Warrant Register #3 for the period of 07/13/16 through 07/19/16 in the amount of $3,498,058.40. (Finance) PREPARED BY: K. Apalategui PHONE: 619-336-4572. DEPARTMENT: Financ APPROVED BY: EXPLANATION: Per Government Section Code 37208, attached are the warrants issued for the period of 07/13/16 through 07/19/16. Consistent with Department of Finance, listed below are all payments above $50,000. Vendor Check/Wire Amount Explanation Dick Miller Inc 324418 180,948.06 Plaza Blvd. and 14h Project Govconnection Inc 324427 55,801.30 Win7 Intel C Multi Drive / MIS Harris & Associates 324428 92,666.00 Group 2 Sewer Project Innovative Construction 324430 60,694.50 Plaza Blvd & 14th St. Project Kimley Horn and Assoc Inc 324432 98,673.47 Wayfinding Task Project Project Professionals Corp 324450 79,262.87 Plaza Blvd. Widening Project Spacesaver Intermountain 324465 378,686.78 Police Dept. Project STC Traffic Inc 324470 172,247.38 Kimball Park Project West Tech Contracting Inc 324476 318,793.87 Paradise Creek Restoration Project Western Rim Constructors 324477 462, 1 63.08 El Toyon & Kimball Park Project Public Emp Ret System 7142016 399,184.87 Service Period 06/21/1 ,i7/04/16 FINANCIAL STATEMENT: ACCOUNT NO. Warrant total $3,498,058.40 APPROVED: APPROVED: ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Ratify warrants totaling $3,498,058.40 BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: Warrant Register #3 159Ot498 1f2 PAYEE D.E. WILLIAMS SHIELDS EPIC LAND SOLUTIONS INC A REASON TO SURVIVE ADAMOS, M AETNA RESOURCES FOR LIVING ALL FRESH PRODUCTS ATKINS NORTH AMERICA INC BOOT WORLD CALIFORNIA ELECTRIC SUPPLY CIRCULATE SAN DIEGO CITY CLERKS ASSOCIATION OF CA COMMERCIAL AQUATIC SERVICE INC COUNTY OF SAN DIEGO DALEY & HEFT LLP DATA TICKET INC DICK MILLER INC DOOLEY ENTERPRISES DOUGLAS BODENSTAB E2 MANAGE TECH INC ECMS ENTERPRISE FLEET MANAGEMENT FEDEX FIFIELD, K GEOSYNTEC CONSULTANTS INC GOVCONNECTION INC HARRIS & ASSOCIATES INDEPENDENT FORENSIC SERVICES INNOVATIVE CONSTRUCTION JOHNSON, S KIMLEY HORN AND ASSOC INC KONICA MINOLTA KREPPS, B KTU&A LASER SAVER INC LIEBERT CASSIDY WHITMORE LOPEZ, Y MCDOUGAL LOVE ECKIS MCDOUGAL LOVE ECKIS MCDOUGAL LOVE ECKIS MCDOUGAL LOVE ECKIS METRO FIRE & SAFETY MICHAEL BAKER INTERNATIONAL MOTOROLA SOLUTIONS INC MSA SAN DIEGO NATIONAL CITY ROTARY CLUB NATIONAL CITY TROPHY NGUO1 VIET TODAY NEWS PROJECT PROFESSIONALS CORP PRUDENTIAL OVERALL SUPPLY .: C I F01#.$1A- '4 NATION _ WARRANT REGISTER #3 7/19/2016 DESCRIPTION CHK NO DATE AMOUNT HELME I SHIELDS 1 FIRE 324403 7114/16 976.50 APPRAISAL - 1231 MCKINLEY AVE / HOUSING 32,1404 7/19/16 5,500.00 BIKE RACK PROJECT 324405 7/19/10 13,015.25 REIMB: PUBLIC SAFETY DISPATCHERS/PD 324406 7/19/16 332.22 EMP ASSISTANCE PROGRAM/JUL 2016 324407 7/19/16 805.50 CONSUMABLES- NUTRITION CENTER 324408 7/19/16 472.95 TAX ROLL SERVICE PROJECT 324409 7/19116 7,528.50 MOP 64096 SAFETY BOOTS / NSD 324410 7/19/16 250.00 MOP#45698 SUPPLIES / PW 324411 7/19/16 329.43 ACTIVE TRANSP. PLANNING PROJECT 324412 7119/16 225.00 2016 MEMBERSHIP / CITY CLERK 324413 7/19/16 170.00 PURCHASE OF POOL CHEMICAL SUPPLIES 324414 7/19/16 923.23 RECORDING BLDG RECORDS 324415 7/19/16 14.00 LIABILITY CLAIM COSTS 324416 7/19/10 17,148.47 DATA TICKET APPEALS 324417 7/19/16 2,710,75 PLAZA BLVD. AND 14TH PROJECT 324418 7/19/16 180,948.06 180GR FULL METAL JACKET AMMO / PD 324419 7/19/16 3,852.26 REFUND T&A #90071. DUP. FAMILY RESIDENCE 324420 7/19/16 11,000.00 2020 HOOVER ST PROJECT 324421 7/19116 330.00 REPAIR FIREFIGHTER CLOTHING 324422 7/19/16 470.34 FLEET LEASE AND MAINTENANCE 324423 7119/16 14,516.51 EXPRESS SHIPMENT/ HOUSING 324424 7/19116 49.45 REIMB: HEALTH INSURANCE 324425 7/19/16 410.14 PARADISE CREEK EMERG. PROJECT 324426 7/19/16 .22,324.41 WIN7 INTEL C MULTI DRIVE / MIS 324427 7/19/16 55,801.30 GROUP 2 SEWER PROJECT 324428 7/19/16 92,666.00 SERVICE FEES CS #16-2668 324429 7/19/10 1,250.00 PLAZA BLVD. & 14TH ST. PROJECT 324430 7/19/16 60,694,50 REIMB: SUPPLIES FOR TINY TOTS PROGRAM 324431 7119/16 134.42 WAYFINDING TASK PROJECT 324432 7/19/16 98,673.47 COPIER EQUIPMENT LEASE 324433 7/19/16 6,804.13 ED REIMBURSEMENT 324434 7/19/16 630.00 DOWNTOWN SPECIFIC PLAN PROJECT 324435 7/19/16 13,226.25 MOP 45725 INK CARTRIDGE / S8 324436 7/19/16 298.39 MEMBERSHIP: EMP RELATIONS CONSORTIUM / HR 324437 7/19/16 405.00 TRANSLATION/INTERPRETATION SVCS 324438 7/19/16 490:00 LIABILITY CLAIM COSTS 324439 7/19/16 3,679.18 LIABILITY CLAIM COSTS 324440 7/19/16 2,371.50 LIABILITY CLAIM COSTS 324441 7/19/10 562.30 LIABILITY CLAIM COSTS 324442 7/19/16 499.66 FIRE EXTINGUISHER SYSTEM 324443 7119/16 210.99 STORM DRAIN REPAIRS PROJECT 324444 7/19/16 17,876.00 APX6000 700/800 MODEL 2.5 PORTABLE / PD 324445 7/19/16 19,962,81 PW ROADWAY RECONSTRUCTION TRAINING 324446 7/19/16 440.00 QUARTERLY DUES - M RODRIGUEZ 324447 7119116 90.00 MOP 66556 RECOGNITION PLAQUES 324448 7/19/16 370.60 NOTICE OF ELECTION - VIETNAMESE 324449 7/19/16 30.00 PLAZA BLVD. WIDENING PROJECT 324450 7/19/16 79,262.87 MOP 45742 LAL 160 of 498 I 324451 7/19/16 52.16 2/2 PAYEE OUALA TEL ENTERPRISES RELY ENVIRONMENTAL SAM ASH MUSIC CORP SAN DIEGO REGIONAL SAN DIEGO UNION TRIBUNE SASI SCS ENGINEERS/FIELD SVCS SHAPE UP STUDIO SHERWIN WILLIAMS SHINN, D SMART & FINAL SMART SOURCE OF CALIFORNIA LLC SCST INC SPACESAVER INTERMOUNTAIN SPIERING, R STACEY POWERS STAPLES BUSINESS ADVANTAGE STC TRAFFIC INC THE CENTRE FOR ORGANIZATION U S BANK U S HEALTHWORKS VISION SERVICE PLAN VISTA PAINT WEST TECH CONTRACTING INC WESTERN RIM CONSTRUCTORS INC WIRED PAYMENTS PAYCHEX BENEFIT TECHNOLOGIES PUBLIC EMP RETIREMENT SYSTEM SECTION 8 HAPS PAYROLL Pay period Start Date 15 7/5/2016 WARRANT REGISTER #3 7/19/2016 DESCRIPTION HEADSET REPAIR / FIRE PUBLIC WORKS YARD PROJECT SAMSQN AURO D208 8" MONITOR / HOUSING EMPLOYEE RELATIONS CONSORTIUM / HR LEGAL NOTICES ADVERTISING FLEXIBLE SPENDING JULJAUG/SEPT 2016 PD GROUNDWATER WELL DEST, PROJECT FITNESS CLASSES MOP 77816 MISC SUPPLIES / NSD REIMB SUPPLIES FOR TINY TOTS PROGRAM MOP 45756 MISC SUPPLIES 1 FIRE NO PARKING TOW AWAY SIGNS/PW FI TOYON & KIMBALL PARK PROJECT POLICE DEPT. PROJECT ED REIMBURSEMENT CHAIR YOGA CLASS MOP 45704 OFFICE SUPPLIES / NSD KIMBALL PARK PROJECT TUITION: PUBLIC MGMNT ACADEMY/REEDER CREDIT CARD EXPENSE 1 FIRE VACCINE HEPB/HR VISION SVC PLAN (CA) JULY 2016 MOP 68834 PAINT / NSD PARADISE CREEK RESTORATION PROJECT EL TOYON & KIMBALL PARK PROJECT BENETRAC ESR SVCS BASE FEE JULY 2016 SERVICE PERIOD 06/21/16 - 07/04/16 Start Date End Date 6/29/2016 7/5/2016 End Date Check Date 7/18/201 6 7/27/2016 CHK NO DATE AMOUNT 324452 7/19/16 117.60 324453 7/19/16 7,905.00 324454 7/19/16 499.99 324455 7/19/16 2,572,00 324456 7119/16 1,705.80 324457 7/19/16 45.00 324458 7/19/16 397.60 324459 7119/16 400.00 324460 7/19/16 3.94 324461 7/19/16 52.06 324462 7/19116 393.37 324463 7/19/16 2,622.98 324464 7/19/16 14,317.00 324465 7119/16 378,686.78 324466 7/19/16 150.00 324467 7/19/16 100.00 324468 7/19/16 373.97 324470 7/19/18 172,247.38 324471 7/19116 4,498.00 324472 7/19/16 650.72 324473 7/19/16 94.00 324474 7/19/16 479.40 324475 7/19/16 1,176.78 324476 7/19/16 318,793.87 324477 7/19/16 462,163.08 A/P Total 2,111,230.82 166432 7/15/16 407.00 7142018 7/14/16 399,184.87 7,115.00 980,120.71 GRAND TOTAL $3,498,058.40 161 of 498 Certification 1N ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE HEREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS ANL) DEMANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. ERTS, F MARK ROBINANCE LESLIE DEESE, CITY MANAGER FINANCE COMMITTEE RONALD J. MORRISON, MAYOR -CHAIRMAN JERRY CANO, VICE -MAYOR ALEJANDRA SOTELO-SOLIS, MEMBER MONA RIOS, MEMBER ALBERT MENDIVIL, MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER IS AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY THE CITY COUNCIL ON THE 16th OF AUGUST, 2016. AYES NAYS ABSENT 162 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 163 The following page(s) contain the backup material for Agenda Item: Public Hearing — Conditional Use Permit for beer and wine sales at Gama Produce located at 1605 East 4th Street. (Applicant: Susana Maza) (Case File 2015-28 CUP) (Planning) 163 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: 'August 16, 2016 AGENDA ITEM NO. ITEM TITLE: ;Public Hearing Conditional Use Permit for beer and wine sales at Game Produce located at 1605 East 4111 Street. (Applicant: Susana Maze) (Case File 2016-28 CUP) PREPARED BY: Martin Reeder, AICP vfOic PHONE: 336-4313 DEPARTMENT: SIP APPROVED BY: EXPLANATION: Gama Produce applied for a Conditional Use Permit (CUP) to sell beer and wine for off -site consumption. The market has been in operation since the year 2000. Hours of operation of the market are 7:30 a.m. to 8:00 p.m. Monday to Friday, and 7:30 a.m. to 7:00 p.m. on the weekends. Proposed alcohol sales hours would be the same. A Type 20 (Off -Sale Beer and Wine) license is currently being processed with the California Department of Alcoholic Beverage Control (ABC). The Planning Commission voted to deny the Conditional Use Permit based on overconcentration of existing alcohol licenses and the high area crime rate. City Council considered a Notice of Decision for this item on June 7, 2016, at which time the item was set for public hearing. The attached background staff report describes the proposal in detail.' FINANCIAL STAT MENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: Not a project per CEQA ORDINANCE: INTRODUCTION: I STAFF RECOMMENDATION: FINAL ADOPTION: APPROVED: APPROVED: Staff recommends approval of the Conditional Use Permit] BOARD !COMMISSION RECOMMENDATION: h"he Planning Commission denied the Conditional Use Permit. Ayes: Baca, Garcia, Sendt Noes: DeLaPaz, Flores ATTACHMENTS: �1. Overhead 2. Background Report 3. Recommended Findings & Conditions 4. Reduced Plans Finance MIS Abstain: Bush, Yamane j 6. Site Photos 6. Public Hearing Notice) 7. Planning Commission Staff Report 8. Planning Commission Resolution No. 2016-11 164 of 498 2015-28 CUP - Gama Produce (beer and wine) - Overhead 165 of 498 BACKGROUND REPORT Overview Gama Produce has applied for a Conditional Use Permit (CUP) to sell beer and wine for off -site consumption. The market has been in operation since the year 2000. Hours of operation of the market are 7:30 a.m. to 8:00 p.m. Monday to Friday, and 7:30 a.m. to 7:00 p.m. on the weekends. A Type 20 (Off -Sale Beer and Wine) license is concurrently being processed with the California Department of Alcoholic Beverage Control (ABC). Site Characteristics The project location is Gama Produce, a neighborhood market at the northeast corner of East 4kt' Street and Palm Avenue in the Minor Mixed -Use Corridor (MXC-1) zone. The existing market is approximately 2,800 square feet in size and has a 13-space parking lot. The property is located south and west of the California Army National Guard Armory. Gama Produce has been in business at this location since 2000. Proposed Use The applicant is requesting to sell beer and wine for off site consumption between the current operating hours of 7:30 a.m. to 8:00 p.m. Monday to Friday, and 7:30 a.m. to 7:00 p.m. on the weekends. Beer and wine would be stored in a cooler located in the rear of the store. Analysis Section 18.30.050 of the National City Land Use Code allows for off -site alcohol sales with an approved Conditional Use Permit (CUP). Additional requirements for alcohol CUP's include expanded notification, a community meeting, and distance requirements. Mailing — All property owners and occupants within a distance of 660 feet are required to be notified of a public hearing for alcohol -related CUP applications, as was done in this case. 356 people were notified by mail of this public hearing. Community Meeting — Pursuant to Section 18.30.050 (C), a community meeting was held Wednesday, January 4, 2016 at 5:00 p.m. at the National City Chamber of Commerce. The applicant has stated that four people were in attendance. A copy of the advertisement, sign -in sheet, and minutes are attached. Distance Requirements — Chapter 18.030.050 (D) requires that businesses that sell alcohol as a principal use maintain a 660-foot distance from schools. However, sales of alcohol in this case would be accessory to a market, and would thus not be subject to this requirement, The nearest school is El Toyon Elementary School, which is located over 800 feet away and is east of Interstate 805. 166 of 498 Required findings The Municipal Code contains required findings for Conditional Use Permits. There are six required findings: 1. The proposed use is allowable within the applicable zoning district pursuant to a Conditional Use Permit and complies with all other applicable provisions of the Land Use Code. The use is allowable within the Minor Mixed -Use Condor zone pursuant to a Conditional Use Permit,and the proposed alcohol sales meet the required guidelines in the Land Use Code for alcohol sales, as discussed in the staff report. 2. The proposed use is consistent with the General Plan and any applicable specific plan. Alcohol sales are permitted, subject to a Conditional Use Permit, by the Land Use Code, which is consistent with the General Plan. A market is a retail use that is consistent with the Minor Mixed -Use land use designation contained in the Land Use and Community Character (LU) section element of the General Plan. In addition, the property is not within a Specific Plan area. 3. The design, location, size, and operating characteristics of the proposed activity would be compatible with the existing and future land uses in the vicinity. No expansion of the building is proposed. The proposal involves an existing market, which was already analyzed for traffic impacts when it was constructed. En addition, because the sale of alcohol would be accessory to the sale of other products, no measurable increase in traffic is expected. Access to and from the site is provided by Palm Avenue and East 4th Street, both collector streets. Palm Avenue north of 4th currently operates at a Level of Service (LOS) of F, while the street south of 4th has a LOS of E. East 4th Street in this location is operating at a LOS of D. Both streets are operating at or above capacity, hence the poor levels of service. However, the sale of alcohol is not expected to result in an increase in Average Daily Trips (ADT) such that the LOS would be affected, particularly as the area devoted to alcohol sales is minimal. 4. The site is physically suitable for the type, density, and intensity of use being proposed, including access, utilities, and the absence of physical constraints. 167 of 498 The proposed use would be accessory to the existing market use, which is located in an existing commercial area. The addition of alcohol sales is not expected to increase the demand for parking on the property. 5. Granting the permit would not constitute a nuisance or be injurious or detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicinity and zone in which the property is located. The proposed use will be subject to conditions that limit the sale of alcohol and restrict the hours that it will be available. 6. The proposed project has been reviewed in compliance with the California Environmental Quality Act. The project is not considered a project under CEQA (California Environmental Quality Act), as no development is proposed. Given that there is no calculable increase in traffic and no other impacts are anticipated staff is of the opinion that the project would not result in any physical changes to the environment. 7. That the proposed use is deemed essential and desirable to the public convenience or necessity, because it will contribute to the continued viability of a market, an established and allowed use in the Minor Mixed -Use Corridor Zone. in this case the alcohol sales will contribute to the viability of a market, an established and allowed use in the Minor Mixed -Use Corridor Zone. Alcohol sales would add to the convenience of the consumer, in that customer would be able to purchase alcohol at the same outlet that they are purchasing other products and not needing to visit multiple locations for their grocery needs. There are also three findings for denial based on the high crime designation and amount of existing off -sale outlets, as discussed in the "Alcohol Sales Concentration/Location" section below. 168 of 498 Department and Agency Comments Alcohol Sales Concentration/Location — Per ABC, there are currently four off -sale permits issued in the subject census tract (220). These permits are: Name Address License Type* CUP Kings Liquor 1626 East 8m Street 21 - 7-Eleven 1601 East 18th Street 20 - Carnival Supermarket 1750 East 8`" Street 21 _ National City Shell 1601 East 8th Street 20 —1 Y * Type 20 — Off -Sale Beer and Wine Type 21 - Off -Sale General Of the four licenses, three are markets/liquor stores and one a gas station. The subject use is consistent with other off -sale businesses, all of which are consistent with the Mixed -Use zones. Census tract 220 includes the area of between Palm Avenue and Interstate 805, and between Division Street and East 18th Street. The attached census tract map shows the location of the subject tract. ABC recommends a total of two off -sate alcohol permits be issued in this census tract, where four exist. Police Department Crime statistics provided by the Police Department (PD) indicate that the reporting area (Beat 21) had a current (January to August 2015) crime rate of 413.8%, above the 120% considered to be a high crime area. Crimes are categorized as either Part I or Part II crimes. Part I crimes are serious crimes such as homicide, robbery, assault, burglary, vehicle theft, etc. Part !I crimes are less serious in nature and less commonly reported. Part it crimes include simple assault, embezzlement, narcotics, and weapons charges (among others). There is generally no specific crime reporting for alcohol - related occurrences. Alcohol is typically just referenced as a contributing factor to a particular crime (robbery, assault, etc.). Consistent with recent policy, PD provided a Risk Assessment report on the property. The assessment assigns points based on the type of business, license concentration, and calls for service (among others) and ranks the business according to potential risk (low, medium, or high). In this case, Gama Produce received 15 points, which would indicate a medium risk. The Risk Assessment is attached. 169 of 498 Institute for Public Strategies (IPS) IPS encouraged that staff and management attend Responsible Beverage Sales and Service training. The training is included as a Condition of Approval. Conditions ofAooroval Standard Conditions of Approval have been included with this permit, as well as conditions specific to off -sale alcohol sales per Council policy 707 (container size, no single sales, signage, RBSS training, etc.). Planning Commission Action Planning Commission conducted a public hearing on February 8, 2016, which resulted in a tie vote (no action considered taken). A new hearing was held on May 2, 2016. Seven speakers spoke in support of the proposal and seven against. Concerns were raised regarding crime rates and oversaturation of alcohol licenses. Commissioners shared the same concerns and asked additional questions regarding other businesses, training, and display area. The Commission voted to deny the Conditional Use Permit based on overconcentration of existing alcohol licenses and the high area crime rate. Summary The proposed use is consistent with the General Plan, because alcohol sales for off -site consumption are a conditionally -allowed use in the Minor Mixed -Use Corridor Zone. The proposed use would be accessory to the existing market use in an existing commercial area, which is not expected to increase the demand for parking or other services on the property. Gama Produce has been in business at this location since 2000. Furthermore, the addition of alcohol sales is not expected to have any significant effects on the area. Although the census tract in which the market is located is over -concentrated with regard to off sale alcohol licenses, the subject location is a produce market where alcohol will be small portion of overall sales. The options available to the City Council are to approve or deny the item, or to continue the item in order to request additional information. In the case of approval or denial, staff will return with a resolution at a subsequent date. 170 of 498 RECOMMENDED FINDINGS FOR APPROVAL 2015-28 CUP, 1605 East 4th Street 1, That the proposed use is allowable within the applicable zoning district pursuant to a Conditional Use Permit and complies with all other applicable provisions of the Land Use Code, because alcohol sales for off -site consumption are a conditionally -allowed use in the Minor Mixed -Use Corridor Zone. 2. That the proposed use is consistent with the General Plan and any applicable specific plans, because alcohol sales are permitted, subject to a Conditional Use Permit, by the Land Use Code, which is consistent with the General Plan. A market is a retail use that is consistent with the Minor Mixed -Use land use designation contained in the Land Use and Community Character (LU) section element of the General Plan. In addition, the property is not within a Specific Plan area 3. That the design, location, size, and operating characteristics of the proposed activity would be compatible with the existing and future land uses in the vicinity, because no expansion is proposed, because the proposed use would be accessory to an existing market use in an existing commercial area, and because the sale of beer is not expected to appreciably increase traffic on East 46 Street or Palm Avenue based on the current capacity and traffic numbers. 4. That the site is physically suitable for the type, density, and intensity of use being proposed, including access, utilities, and the absence of physical constraints, because the proposed use would be accessory to an existing market use in an existing commercial area, which is not expected to increase the demand for parking on the property. 5. Granting the permit would not constitute a nuisance or be injurious or detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicinity and zone, in which the property is located, because the proposed use will be compatible with other businesses in the same census tract; and because the proposed use will be subject to conditions that limit the sale of alcohol and restrict the hours that it will be available, 6. That the proposed project has been reviewed in compliance with the California Environmental Quality Act, because it has been determined that the proposed use is not a project per the Act; There is no calculable increase in traffic and no 171 of 498 other impacts are anticipated; therefore, the project would not result in any physical changes to the environment. 7, That the proposed use is deemed essential and desirable to the public convenience and necessity, because it will contribute to the continued viability of a market, an established and allowed use in the Minor Mixed -Use Corridor Zone. Alcohol sales would add to the convenience of the consumer, in that customer would be able to purchase alcohol at the same outlet that they are purchasing other products and not needing to visit multiple locations for their grocery needs. 8. That based on findings 1 through. 7 above, public convenience and necessity will be served by a proposed use of the property for the retail sales of alcoholic beverages pursuant to law. RECOMMENDED FINDINGS FOR DENIAL 2015-28 CUP, 1605 East 4th Street 1, Granting the permit would constitute a nuisance or be injurious or detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicinity and zone in which the property is located, because the census tract in which the subject property is located is currently over -concentrated with regard to off -sale alcohol outlets — four off -sale outlets are permitted where two are recommended by the California Department of Alcoholic Beverage Control. — and the area has a high crime rate. 2. That the proposed use is not deemed essential and desirable to the public convenience and necessity, because four other off -sale alcohol outlets are located in the same census tract as the subject property. 3. That based on findings 1 and 2 above, public convenience and necessity will not be served by a proposed use of the property for the retail sales of alcoholic beverages pursuant to law. 172 of 498 RECOMMENDED CONDITIONS OF APPROVAL 2015-28 CUP, 1605 East 4th Street General 1. This Conditional Use Permit authorizes the sale of beer and wine at an existing market located at 1605 East 4th Street. The display of alcoholic beverages shall be limited to an area in substantial conformance with Exhibit A, Case File No. 2015-28 CUP, dated 1111812015. 2. This permit shall become null and void if not exercised within one year after adoption of the Resolution of approval unless extended according to procedures specified in the Municipal Code. 3. This permit shall expire if the use authorized by this resolution is discontinued for a period of 12 months or longer. This permit may also be revoked, pursuant to provisions of the Land Use Code, if discontinued for any lesser period of time. 4. This Conditional Use Permit may be revoked if the operator is found to be in violation of Conditions of Approval. 5. Before this Conditional Use Permit shall become effective, the applicant and the property owner both shall sign and have notarized an Acceptance Form, provided by the Planning Department, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Conditional Use Permit. The applicant shall also submit evidence to the satisfaction of the Executive Director that a Notice of Restriction on Real Property is recorded with the County Recorder. The applicant shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Conditional Use Permit are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to forrn by the City Attorney and signed by the Executive Director prior to recordation. Planning 6. The sale of alcoholic beverages shall be limited to the hours of 7:30 a.m. to 8:00 p.m. Monday to Friday and 7:30 a.m. to 7:00 p.m. on weekends. 7. The sale of beer or malt beverages in quantities of quarts, 22-ounce, 32-ounce, 40- ounce, or similar size containers is prohibited. 8. No beer products shall be sold of Tess than manufacturer's pre -packaged three -pack quantities of 24 ounce cans per sale. There shall be no sale of single cans or bottles. 173 of 498 9. No sale of wine or distilled spirits shall be sold in containers of less than 750 milliliters. The sale of wine with an alcoholic content greater than 15% by volume is prohibited. 10. Flavored malt beverages, also known as premium malt beverages and flavored malt coolers, and sometimes commonly referred to as wine coolers, may be sold only by four -pack or other manufacturer's prepackaged multi -unit quantities. 11.The consumption of alcoholic beverages is prohibited on the subject premises, and on all parking lots and outbuildings and any property or adjacent property under the control of the applicant. 12.AII cups and containers shall be sold at or above prevailing prices and in their original mufti -container packages of no fewer than 12, and no cups and containers shall be given free of charge. 13. lce may be sold only at or about prevailing prices in the area and in quantities of not less than three pounds per sale. Ice shall not be provided free of charge. 14. Permittee shall post signs on the exterior building walls in compliance with Chapter 10.30.070 of the National City Municipal Code. Additionally, the pemiittee shall post signs, to be approved by the Planning Department, at each entrance to the applicant's premises and parking lot, prohibiting loitering and consumption of alcohol on the premises and adjacent property under his control. Said signs shall not be less than. 17 by 22 inches in size, with lettering not less than one inch in height. The signs shall read as follows: a. "No open alcoholic beverage containers are allowed on these premises." b. "No loitering is allowed." 15.Containers of distilled spirits may not be stored on the premises, after being sold to patrons, for the purpose of later consumption. 16. Exterior advertising and signs of all types, promoting or indicating the availability of alcoholic beverages, including advertising/signs directed to the exterior from within, are prohibited. Interior displays of alcoholic beverages and signs, which are clearly visible to the exterior, shall constitute a violation of this condition. 17. The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of all other commodities during the same period. The applicant shall at all times keep records which reflect separately the gross sales of alcoholic beverages and the gross sales of all other items. Said records shall be kept no less frequently than on a quarterly basis and shall be made available to the City Finance Department and any Peace Officer of the California Department of Alcoholic Beverage Control upon demand. 174 of 498 18.AII sellers and servers of alcohol shall receive Responsible Beverage Service and Sales (RBSS) training, including all owners, and managers. The RBSS training must be certified by the Department of Alcoholic Beverage Control (ABC). Proof of completion of an approved RBSS program must be provided prior to issuance of a city business license. As part of the RBSS training, the pern rittee shall make available a domestic violence training session as provided by The Institute of Public Strategies. Police 19. Permittee shall comply with all regulatory provisions of the Business and Professions Code that pertain to the sale, display and marketing or merchandising of alcoholic beverages. 175 of 498 11 *°Csit EXHIBIT: A CASE FILE MO.: 2-0 r — 14 DATE: Nl is b,u�s 2015-28 CHIP — Gam Produce (beer and wine) — Site Photos Interior of market from entrance Cooler where alcohol wilt be displayed 13 CITY OF NATIONAL CITY Office of the City Clerk 1243 National City Blvd., National City, California 91950 619-336-422B phone / 619-336.4229 fax Michael R. Oa31a, CMC - City Clerk �,, •.T. ,,er..0 z, C R EstOF P KEA WING 1OTiCE IS Ffrz?",ECY GiVEM that the City Council of the City of National City will hold a Public Hearing after the hour of 6:00. p.m., Tuesday, August 16, 2016, in the City Council Chambers, Civic Center, 1243 National City Blvd., National City, CA., to consider a: ,tt*e" �+� Iw` .,` .,. ■ 1, USE � �-rk y+. � I�`�' FOR F'., r'"y. �.,.f � � >.� e � � � V4 y=Dl I IiJNAL Pr�k'J i FOR Eala.R Al i ��d U4E �"` �" "i 1 � ca ��i".! . ��' "I9'� ♦ a.:' .X yrr.-.' _�-y r" 'ISM # r_-' +�� '"' ;�1��� A i A7�'i"':.fi `_ 4 ! 1.1Ow'l,;Q F. LOCATED EF,.M1 L R V� /9: T -' �'1 $� The Public Hearing is being rescheduled and renoticed due to an error in a previous Public Hearing Notice. Anyone interested in this matter may appear at the above time and place and be heard. If you challenge the nature of the proposed aeon in court, you may be limited to raising only those Issues you or someone else raised at the Public Hearing described in thls notice, or In written correspondence delivered to the undersigned, or to the City Council of the City of National City at, or prior to, the Public Hearing. The Planning Commission conducted a Public Hearing at their meeting of May 2, 2016 and voted to recommend denial of the Conditional Use Penult by a vote of 3 to 2 with 2 members absent, August 3, 2016 Michael R', Della, CMC City Clerk 178 of 498 CITY OF NATIONAL CITY - PLANNING DEPARTMENT 1243 NATIONAL CITY BLVD., NATIONAL CITY, CA 91950 PLANNING COMMISSION STAFF REPORT Title: Case File No.: Property Location: Assessor's Parcel No.: Staff report by: Applicant: Property owner: Zoning designation: Adjacent land use/zoning: North: East South: West: Environmental review: Item no. 4 May 2, 2016 CONDITIONAL USE PERMIT FOR BEER AND WINE SALES AT GAMA PRODUCE LOCATED AT 1605 EAST 4TH STREET. 2015-28 CUP Northeast corner of Palm Avenue and East 4th Street 554-050-19 Martin Reeder, AICP — Principal Planner Susana Maza Stephen Reynolds Minor Mixed -Use Corridor (MXC-1) California ArTny National Guard Armory / I (Institutional) California Army National Guard Armory / I (Institutional) Residential & Commercial use across East 4th Street 1 MXC-1 Vacant commercial building / MXC-1 Not a project per CEQA Staff Recommendation: Approve based on attached findings and subject to attached Conditions of Approval 179 of 498 15 BACKGROUND Gama Produce has applied for a Conditional Use Permit (CUP) to sell beer and wine for off site consumption. The market has been in operation since the year 2000. Hours of operation of the market are 7:30 a.m. to 8:00 p.m. Monday to Friday, and 7:30 a.m. to 7:00 p.m. on the weekends. A Type 20 (Oft Sale Beer and Wine) license is concurrently being processed with the California Department of Alcoholic Beverage Control (ABC). Previous Action This item was on the Planning Commission agenda of February 8, 2016. At that time a motion to approve the CUP ended in a three to three tie vote (one member was absent). In the case of a tie vote and in absence of a specific rule, no action is considered taken. In a quasi-judicial hearing and in the interest of due process, the applicant is entitled to a decision — a finding of approval or denial of the CUP. Therefore, the item has been re - noticed in order for the Planning Commission to hear the item anew. It is important to note that this is not a continued public hearing, but rather a completely new hearing. At the previous hearing, two community members spoke in opposition of the application citing existing outlets and high crime in the area. In March, a petition against the project was submitted to staff. The petition has 130 signatures and is attached for your review. Site Characteristics The project location is Gama Produce, a neighborhood market at the northeast comer of East 4th Street and Palm Avenue in the Minor Mixed -Use Corridor (MXC-1) zone. The existing market is approximately 2,800 square feet in size and has a 13-space parking lot. The property is located south and west of the California Army National Guard Armory. Gama Produce has been in business at this location since 2000. Proposed Use The applicant is requesting to sell beer and wine for off -site consumption between the current operating hours of 7:30 a.m. to 8:00 p.m. Monday to Friday, and 7:30 a.m. to 7:00 p.m. on the weekends. Beer and wine would be stored in a cooler located in the rear of the store. Analysis Section 18.30.050 of the National City Land Use Code allows for of site alcohol sales with an approved Conditional Use Permit (CUP). Additional requirements for alcohol CUP's include expanded notification, a community meeting, and distance requirements. Mailing — All property owners and occupants within a distance of 660 feet are required to be notified of a public hearing for alcohol -related CUP applications, as was done in this case. 356 people were notified by mail of this public hearing. 180 of 498 Community Meeting Pursuant to Section 18.30.050 (C), a community meeting was held Wednesday, January 4, 2016 at 5:00 p.m. at the National City Chamber of Commerce. The applicant has stated that four people were in attendance. A copy of the advertisement, sign -in sheet, and minutes are attached. Distance Requirements — Chapter 18.030.050 (D) requires that businesses that sell alcohol as a principal use maintain a 660-foot distance from schools. However, sales of alcohol in this case would be accessory to a market, and would thus not be subject to this requirement. The nearest school is El Toyon Elementary School, which is located over 800 feet away and is east of Interstate 805. Required findings The Municipal Code contains required findings for Conditional Use Permits. There are six required findings: 1. The proposed use is allowable within the applicable zoning district pursuant to a Conditional Use Permit and complies with all other applicable provisions of the Land Use Code. The use is allowable within the Minor Mixed -Use Corridor zone pursuant to a Conditional Use Permit, and the proposed alcohol sales meet the required guidelines in the Land Use Code for alcohol sales, as discussed in the staff report. 2. The proposed use is consistent with the General Plan and any applicable specific plan. Alcohol sales are permitted, subject to a Conditional Use Permit, by the Land Use Code, which is consistent with the General Plan. A market is a retail use that is consistent with the Minor Mixed -Use land use designation contained in the Land Use and Community Character (LU) section element of the General Plan. in addition, the property is not within a Specific Plan area. 3. The design, location, size, and operating characteristics of the proposed activity would be compatible with the existing and future land uses in the vicinity, No expansion of the building is proposed. The proposal involves an existing market, which was already analyzed for traffic impacts when it was constructed. In addition, because the sale of alcohol would be accessory to the sale of other products, no measurable increase in traffic is expected. Access to and from the site is provided by Palm Avenue and East 4th Street, both collector streets. Palm Avenue north of 4th currently operates at a Level of Service (LOS) of F, while the street south of 4th has a 181 of 498 17 LOS of E. East 4th Street in this location is operating at a LOS of D. Both streets are operating at or above capacity, hence the poor levels of service. However, the sale of alcohol is not expected to result in an increase in Average Daily Trips (ADT) such that the LOS would be affected, particularly as the area devoted to alcohol sales is minimal. 4. The site is physically suitable for the type, density, and intensity of use being proposed, including access, utilities, and the absence of physical constraints. The proposed use would be accessory to the existing market use, which is located in an existing commercial area. The addition of alcohol sales is not expected to increase the demand for parking on the property. b. Granting the permit would not constitute a nuisance or be injurious or detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicinity and zone in which the property is located. The proposed use will be subject to conditions that limit the sale of alcohol and restrict the hours that it will be available. 6. The proposed project has been reviewed in compliance with the California Environmental Quality Act. The project is not considered a project under CEQA (California Environmental Quality Act), as no development is proposed. Given that there is no calculable increase in traffic and no other impacts are anticipated staff is of the opinion that the project would not result in any physical changes to the environment. 7. That the proposed use is deemed essential and desirable to the public convenience or necessity, because it will contribute to the continued viability of a market, an established and allowed use in the Minor Mixed -Use Corridor Zone. In this case the alcohol sales will contribute to the viability of a market, an established and allowed use in the Minor Mixed -Use Corridor Zone. Alcohol sales would add to the convenience of the consumer, in that customer would be able to purchase alcohol at the same outlet that they are purchasing other products and not needing to visit multiple locations for their grocery needs. There are also three findings for denial based on the high crime designation and amount of existing off -sale outlets, as discussed in the "Alcohol Sales Concentration/Location" section below. 182 of 498 Department and Agency Comments Alcohol Sales Concentration/Location — Per ABC, there are currently four off -sale permits issued in the subject census tract (220). These permits are: Name Kings Liquor 7-Eleven Carnival Supermarket National City Shell Address 1626 East 8tn Street 1601 East 18t" Street 1750 East 8th Street 1601 East 8th Street License Type* CUP 21 20 21 20 Y * Type 20 — Off -Sale Beer and Wine Type 2'1 - Off -Sale General Of the four licenses, three are markets/liquor stores and one a gas station. The subject use is consistent with other off -sale businesses, all of which are consistent with the Mixed -Use zones. Census tract 220 includes the area of between Palm Avenue and Interstate 805, and between Division Street and East 18th Street. The attached census tract map shows the location of the subject tract. ABC recommends a total of two off -sale alcohol permits be issued in this census tract, where four exist. Police Department Crime statistics provided by the Police Department (PD) indicate that the reporting area (Beat 21) had a current (January to August 2015) crime rate of 413.8%, above the 120% considered to be a high crime area. Crimes are categorized as either Part I or Part II crimes. Part ! crimes are serious crimes such as homicide, robbery, assault, burglary, vehicle theft, etc. Part II crimes are less serious in nature and less commonly reported. Part I! crimes include simple assault, embezzlement, narcotics, and weapons charges (among others). There is generally no specific crime reporting for alcohol - related occurrences. Alcohol is typically just referenced as a contributing factor to a particular crime (robbery, assault, etc.). Consistent with recent policy, PD provided a Risk Assessment report on the property. The assessment assigns points based on the type of business, license concentration, and calls for service (among others) and ranks the business according to potential risk (low, medium, or high). In this case, Game Produce received 15 points, which would indicate a medium risk. The Risk Assessment is attached. 183 of 498 19 Institute for Public Strategies (IPS) IPS encouraged that staff and management attend Responsible Beverage Sales and Service training. The training is included as a Condition of Approval. Conditions of Approval Standard Conditions of Approval have been included with this permit, as well as conditions specific to off -sale alcohol sales per Council policy 707 (container size, no single sales, signage, RBSS training, etc.). Summary The proposed use is consistent with the General Plan, because alcohol sales for off -site consumption are a conditionally -allowed use in the Minor Mixed -Use Corridor Zone. The proposed use would be accessory to the existing market use in an existing commercial area, which is not expected to increase the demand for parking or other services on the property. Game Produce has been in business at this location since 2000. Furthermore, the addition of alcohol sales is not expected to have any significant effects on the area. Although the census tract in which the market is located is over -concentrated with regard to off -sale alcohol licenses, the subject location is a .produce market where alcohol will be small portion of overall sales. OPTIONS 1. Approve 201 5-28 CUP subject to the conditions listed below, based on attached findings; or 2. Deny 2015-28 CUP based on attached findings/findings to be determined by the Planning Commission; or 3. Continue the item in order to obtain additional information. 184 of 498 ATTACHMENTS 1. Recommended Findings 2. Recommended Conditions 3. Overhead 4. Site photos 5. Applicant's Plans (Exhibit A, Case File No. 2015-28 CUP, dated 11118/2015) 6. Community meeting advertisement, sign -in sheet, and minutes 7. Police Department and institute for Public Strategies comments 8. Census Tract Map and Police Beat I' ap 9. Public Hearing Notice (Sent to 258 property owners and occupants) 10. Public correspondence MARTIN REEDER, AICP Principal Planner Executive Director 185 of 498 21 RECOMMENDED CONDITIONS OF APPROVAL 2015-28 CUP, 1605 East 4th Street General 1. This Conditional Use Permit authorizes the sale of beer and wine at an existing market located at 1605 East 4' Street. The display of alcoholic beverages shah be limited to an area in substantial conformance with Exhibit A, Case File No. 2015-28 CUP, dated 11/1812015. 2. This permit shall become null and void if not exercised within one year after adoption of the Resolution of approval unless extended according to procedures specified in the Municipal Code. 3. This permit shall expire if the use authorized by this resolution is discontinued for a period of 12 months or longer. This permit may also be revoked, pursuant to provisions of the Land Use Code, if discontinued for any lesser period of time. 4. This Conditional Use Permit may be revoked if the operator is found to be in violation of Conditions of Approval. 5. Before this Conditional Use Permit shall become effective, the applicant and the property owner both shall sign and have notarized an Acceptance Form, provided by the Planning Department, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Conditional Use Permit. The applicant shall also submit evidence to the satisfaction of the Executive Director that a Notice of Restriction on Real Property is recorded with the County Recorder. The applicant shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Conditional Use Permit are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to form by the City Attorney and signed by the Executive Director prior to recordation. Planning 6. The sale of beer or malt beverages in quantities of quarts, 22-ounce, 32-ounce, 40- ounce, or similar size containers is prohibited. 7. No beer products shall be sold of less than manufacturer's pre -packaged three -pack quantities of 24 ounce cans per sale. There shall be no sale of single cans or bottles. 8. No sale of wine or distilled spirits shall be sold in containers of less than 750 milliliters. The sale of wine with an alcoholic content greater than 15% by volume is prohibited. 186 of 498 9. Flavored malt beverages, also known as premium malt beverages and flavored malt coolers, and sometimes commonly referred to as wine coolers, may be sold only by four -pack or other manufacturer's prepackaged multi -unit quantities. 10. The consumption of alcoholic beverages is prohibited on the subject premises, and on all parking lots and outbuildings and any property or adjacent property under the control of the applicant. 11.AII cups and containers shall be sold at or above prevailing prices and in their original multi -container packages of no fewer than 12, and no cups and containers shall be given free of charge. 12. Ice may be sold only at or about prevailing prices in the area and in quantities of not Tess than three pounds per sale. Ice shall not be provided free of charge. 13. Permittee shall post signs on the exterior building walls in compliance with Chapter 10.30.070 of the National City Municipal Code. Additionally, the permittee shall post signs, to be approved by the Planning Department, at each entrance to the applicant's premises and parking lot, prohibiting loitering and consumption of alcohol on the premises and adjacent property under his control. Said signs shall not be less than 17 by 22 inches in size, with lettering not less than one inch in height. The signs shall read as follows: a. "No open alcoholic beverage containers are allowed on these premises." b. "No loitering is allowed." 14. Containers of distilled spirits may not be stored on the premises, after being sold to patrons, for the purpose of later consumption, 15. Exterior advertising and signs of ail types, promoting or indicating the availability of alcoholic beverages, including advertising/signs directed to the exterior from within, are prohibited. Interior displays of alcoholic beverages and signs, which are clearly visible to the exterior, shall constitute a violation of this condition, 16. The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of all other commodities during the same period. The applicant shall at all times keep records which reflect separately the gross sales of alcoholic beverages and the gross sales of all other items. Said records shall be kept no less frequently than on a quarterly basis and shall be made available to the City Finance Department and any Peace Officer of the California Department of Alcoholic Beverage Control upon demand. Police 17. Permittee shall comply with all regulatory provisions of the Business and Professions Code that pertain to the sale, display and marketing or merchandising of alcoholic beverages. 187 of 498 23 V� V1 GAMA PRODUCE °J.4‘ iee Dear community member, 619-477-2374 Gaeta Produce has recently applied for a beer and wine sales license in National City. It's my hope to serve the community even more as the best priced, fresh produce and every day item store in National City with this addition. The community is very important to me and I want to hear what you ;have to say as well as answer questions or concerns. To do this, we will hold a community meeting to discuss our C.U.P. license to sell beer and wine the store. The community meeting will take place at: 901 National City Blvd., National City, CA 92950 On Jan 4th, 2016 from 5:00pm to 8:00nm PST. I will personally be on hand to address any issues or concerns asi well as answer any questions regarding the additional license to sell beer and wine at the stare. We hope you can attend and meet with us. If you have any questions or issues please visit Our website at www.GainaProduce..pweb.com or contact Susana at GamaPraduce@oftlook.com Sincerely, 1605E 4`" St. National City, CA 91950 k 619-477-2374 1 GamaPro;duce@outlook.com 188 of 498 3 3 3 3 3 1 a a 3 1 3 1 eTh CONTACTS NAME ADDRESS ' NUMBERS &--140-1 na 51C6SCOO /60V q -SI, P9 -41771-0A1,2\______ "570 ^ a (Zi. ait Ur I 5 cf licYll —6-4 Lofl -Et 41 ale ' 677xj '-eth 6 Ile' Ar .65 5 i vr. 116/119D,9` t-- 189 of 498 r Gama Produce Community Meeting minutes January 4, 2016 Begin: 5:00 p.m. Welcome and thanks for coming to the meeting. Description of request and operation. Questions about products sold and hours of operations. End: 5:35 p.m. 190 of 498 NATIONAL CITY POLICE DEPARTMENT ALCOHOL BEVERAGE CONTROL RISK. ASSESSMENT DATE: 12/03115 BUSINESS NAME: Gama Produce ADDRESS: 1606 East 4th Street, National City, CA 91950 OyNERN: Carlos & Susana Maza DOB: Not Disclosed OWNER ADDRESS: 1605 East 4th Street, National City, CA 91950 (add additional owners on page 2) I. Type of Business ❑ Restaurant (1 pt) 0 Market (2 pts) 0 Bar/Night Club (3 pts) 11. Hours of Operation 0 Daytime hours (1 pt) i Close by l0pm (2 pts) 0 Close after 10pm (3 pts) 1II. Entertainment ❑ Music (1 pt) f� Live Music (2 pts) 0 Dancing/Live Music (3 pts) IV. Crime Rate l7Low (1pt) 0 Medium (2 pts) 0 High (3 pts) V. Alcohol Businesses per Census Tract 0 Below (1 pt) 0 Average (2 pts) 0 Above (3 pts) Notes: Crime Rate - over 120% (413.8%) Census Tract - 220 Allowed Type 20.- (Off -sale, Beer& Wine) Currently allowed On -sale - 5 / Currently have - 3 Currently allowed Off -sate- 2 / Currently have - 4 Over saturation Revised: 11/1 I 1 of 2 191 of 498 27 National City Police Department VI. Calls for Service at Location (for previous 6 months) 0 Below (1 pt) 1 Average (2 pts) 0 Above (3 pts) VII. Proximity Assessment (1/4 mile radius of location) D Mostly commercial businesses (1 pt) 0 Some businesses, some residential (2 pts) 1 Mostly residential (3 pts) VIII.Owner(s) records check id No criminal incidents (0 pts) 0 Minor criminal incidents (2 pts) 0 Multiple/Major criminal incidents (3 pts) ABC Risk Assessment Low Risk ( I2pts or less) Medium Risk (13—18pts) High Risk (19 — 24pts) Total Points 15 OWNER NAME: Carlos Maza DOB: Not Disclosed OWNER ADDRESS: 1605 East 4th Street, National City, CA 91950 OWNER NAME: Susana Maze DOB: Not Disclosed OWNER ADDRESS: 1605 East 4th Street, National City, CA 91950 Recommendation: - NCPD does not have a proactive enforcement unit for ABC outlets. - Within 100' of residences, El Toyon school and park near -by. (5) on -sale and (2) Off -sale licenses are allowed in the census tract - Census tract 220 currently has (3) On -sale and (4) Off -Sale. - Over saturation by double for Off -Sale establishments. - ABC states - Area is considered "High Crime Rate," The census tract is "Over Concentrated." = Crime Rate for Beat 21 - 413.8%, nearly 4 times the rate of a "High Crime Rate" defined by ABC Completed by: Graham Young, Lt. Badge ID: 365 2 of 2 192 of 498 California ABC - License Ouery System - Data Portal Page 1 of 1 as- ot# 4tN °se California Department of Alcoholic Beverage Control For the Com ty of SAN DIEGO - (Retail Licenses) and Census Tract = 220 Report as of 10/25/2015 Status Eg Ogg' . Date Expir peke Primary Owner and Prellilsas Addr. Business Name MattingGeo Address CTIVE 48 [V20/1991 1/3112016 ' UD MOILER iNC 19 PALM AVE ATiONAL CITY, CA 1950 Tract: 0220.00 ALOTTAS 3515 VALLEY VISTA RD BONITA, CA 81902 708 1264381 2 350706 ACTIVE. 21 W1211999 5l31/2016 SHOSHAN], GEORGE WINGS LIQUOR 708 • 1 MANNA 1626E 8TH ST NATIONAL CITY, CA 8i950 , Census Tract: 0220.00 ,31 398988 ACTIVE 20 •r3128/2003 5/30/2016 7 ELEVEN INC `7 ELEVEN2131 17265 PO BOX 219086, ATT: 7 708 L 1601E 18TH ST NATIONAL CITY, CA 91950 • Census Tract: 0220.00 ELEVEN LICENSING DALLAS, TX 75221-9088 4j-}D8542 ACTIVE 21 3/2512004 12/31,2015 CARNIVAL CARNIVAL 3708 : 1JI i 'Census SUPERMARKET INC ,.SUPERMARKET 1750E 8TH ST NATIONAL CITY, CA 91950 Tract: 0220.00 9110 ' CTIVE 41 11f2012007 10/31/2015 HOP INC FAMILY HOUSE OF 1, PLAZA BLVD TIQAEA.L CITY, CA 1950-3703 ,..ensus Tract: 0220.00 PANCAKES R 7900E i irca,I 41 /2 11 0 018 I fCY 3708 :49 59 Phi !j 819 E PLAZA BLVD ATIONAL CITY, CA 1950-3701 nsus Tract: 0220.00 7I 0773 . CTIVE 20 4/10f2014 3/31:2016 iNTNERS NATIONAL CITY SHELL 1805 ALBRAE ST, 2ND 708 J 1:32:10 PM ISTRI i3UTORS INC 801 E STH ST TIOIVAL CITY, CA 1950 naus Traci: 0220.90 L REMONT, CA 94538- 120 aTT -Siva r -- EndofReport - - - For a definition of codes, view our glossary. 4 193 of 498 is DEPARTMENT OF ALCOHOLIC BEVERAGE COE9 i ROL NUMBER OF LICENSES AUTHORIZED BY CENSUS TRACT sooty: Lauri Name Population SAN 0t40 SAN•*60 01€60 SAN4 SAN SAN DLEE1GQ SAN :O1EG} SAN poso t DI 010.0. SAN DIEGO e.�_ SAN DIE6 3,227,496 3,227,496 3,227,496 3,227,496 3,227,496 3,227,496 3,227,496 :CoantyRatio On Sale 790 790 790 790 790 790. `go ofy':Ratio-9. • 'SA 3,227,496 790 3,227,496 3,227,496 3,227,496 3,227,496 3,227,496 I 790 790 790 790 790 790 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 ff' fi3tis - Trait.# 20tOt Otis Tract . Popglat1orn S.NO ,24•14A5 i 3412 2 ai0 5.1,96 A00 • 206,02 20. :.... • „ ,05 207.06 6i286 SAN DIEGO. SAN DIEGO . 3,227,496 3,227,496 790 790 1,564 1,564 . 207.01 20'7.08 SAN DIEGO SAN DIEGO 3,227,496 3,227,496 790 790 1,564 1,564 2U7;O9 , 4,,134: 3,437 5 3 4 . 2 8,flf17 1 10 5 207.10 1,749 2 1 i Ditto• SAN DIEGO SAN DIEGO SAN DIEGO 3,227,496 3,227,496 3,227,496 3,227,496 790 790 790 790 1,564 2,564 1,564 1,564 208.01 - 5,230 208.05 3514 2136.66 . 5,846 208.07 2;599 6 3 4 7 3 2 3 1 SAN DIEGO SAN DIEGO SAN DiEGO SAN DIEGO -SAN DIED SANDTEGO 'SAN 131600 SAN .DIEGO SAN .Pt SANtifilO 3,227,496 3,227,496 , 3,227,496 3,227,496 • 3,227,496 3,227,496 3,227,496 3,227,496 3,227,496 3,227,496 790 790 790 790 790 790 790 790 790 790 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 1,564 SAN DIEGO SAN NEGO SA61 DfO SAN MOO 3,227,496 3,227,496 3,227,496 3,227,496 3,227,496 790 . 1 1,564 790 790 •790 790 1,564 1,564 1,564 1,564 SAN pir40 SA1.- SAN»jE4 J 'SAN OM :. SAA! ,,q_.p SAS . _ SO) SANOMMO SAS:AAIO SAN'' SA I,FRA,Nt1:SG0 SASVRANCISOD SAN FISCD 3,227,496 3,227,496 3,227,496 3,227,496 3,227,496 3,227,496' 3,227,496 3,227,496 845,602 845,602 845,602 845,602 845,602 845,602 845,602 845,602 790 790 790 790 790 790 790 790 275 275 275 275 275 275 275 275 1,564 1,564 1,564 1,564 1,564 1,564 4564 1,564 1,060 1,060 1,060 11060 1,060 1,060 1,060 1,060 2€18.{ 208.10 2*00 211.00 2 42 �12.0Tr� !i 21 ..2-2 Z13 8 r 6,778 5,266 5,650 •3. 8 6 7 2 4 4 .3 2 2 1 5_ 2 9 4 4,440 7,fi86- kta 5;:• 11 :. '�:. '3 tad'. 415.1 141140 1.. 1,640 •:2: 2f .4 1 4 2.• • 5 16 ;4 Updated: Sep 2015 194 of 498 Page 121 Requires Parameters Reporting Period: 01/2015 to 09/2015 Agency: NATIONAL CITY ABC Report 2015 ABC Report by Beats Optional Parametere Geographical Area: Group by: Beat Total Part 1 Crime and Part 2 Arrest for Agency: 3,238 Total Beat 14 Average Total per Beat 231.3 (120% or above is High Crime Area indicated by *I Beat Totals % Average by Beat 1 011 0 0.0% 2 014 0 0.0% 3 020 969 419.0%* 4 021 957 413.8%* 5 023 763 329.9%* 6 024 545 235.64%* 7 434 0 0.0% 8 441 0 0.0% 9 514 0 0.0% • 10 521 0 0.0% 11 722 0 0.0% 12 999 4 1.7% Prior Report Number: B988328R Oct 21, 2015 -14- 195 of 498 31 3:27:33 PM AVIS Required Parameters Reporting Period: 01/2015 to 0912015 Agency: NATIONAL CITY ABC Report 2015 ABC Report by Beats Optional Parameters Geographical Area: Group by: Beat Prior Report Number: B98S328R CRIME TYPES CRIME TOTALS CRIMINAL HOMICIDE 0 FORCIBLE RAPE 14 ROBBERY 112 AGGRAVATED ASSAULT 165 BURGLARY 132 LARCENY 720 MOTOR VEHICLE THEFT 211 Total Part I Crime: 1,354 ARREST TYPES ARREST TOTALS SIMPLE ASSAULT 44 OTHER PART II CRIMES 1,202 CHILD AND FAMILY 38 DEADLY WEAPONS 24 EMBEZZLEMENT 8 FRAUD 26 GAMBLING 0 MALICIOUS MISCHIEF 14 NARCOTICS 342 SEX CRIMES 17 FORGERY 3 OTHER NON -CRIMINAL 166 Total Part II Arrest: 1,884 Total = Part I Crime + Part II Arrest for Agency: Total Agency: (120% Is considered high crime area) Average Total Per Agency: 3,238 1 3,238 Oct 21, 2015 196 of 498 3:27:33 PM -21lbaVrs Required Parameters Reporting Period: 0112015 to 09/2015 Agency: NATIONAL CITY ABC Report 2015 ABC Report by Beats Optional Parameters Geographical Area: Group by: Beat 020 Prior Report Number. B98S328R CRIME TYPES CRIME TOTALS CRIMINAL HOMICIDE 0 FORCIBLE RAPE 6 ROBBERY 34 AGGRAVATED ASSAULT 31 BURGLARY 22 LARCENY 235 MOTOR VEHICLE THEFT 44 Total Part I Crime: 372 ARREST TYPES ARREST TOTALS SIMPLE ASSAULT 12 OTHER PART II CRIMES 336 CHILD AND FAMILY 9 DEADLY WEAPONS 10 EMBEZZLEMENT 3 FRAUD 10 GAMBLING 0 MALICIOUS MISCHIEF 4 NARCOTICS 138 SEX CRIMES 8 FORGERY 1 OTHER NON -CRIMINAL 66 Total Part II Arrest: 597 Beat Total = Part I Crime + Part II Arrest: 969 BeatAve. ( Agency 1 Beat ): 231.3 Agency Wide Total = Part 1 Crime + Part II Arrest: 3,238 Beat Total as % of Beat Average: : 419.O% (120% is considered high crime area) Oct 21, 2015 -4- 197 of 498 .1s 3:27:3; PM Required Parameters Reporting Period: 01/2015 to 09/2016 Agency: NATIONAL CITY ABC Report 2015 ABC Report by Beats Optional Parameters Geographical Area: Group by: Beat 021 CRIME TYPES CRIME TOTALS CRIMINAL HOMICIDE 0 FORCIBLE RAPE 3 ROBBERY 33 AGGRAVATED ASSAULT 57 BURGLARY 53 LARCENY 169 MOTOR VEHICLE THEFT 66 Total Part I Crime: 381 ARREST TYPES ARREST TOTALS SIMPLE ASSAULT 16 OTHER PART II CRIMES 384 CHILD AND FAMILY 15 DEADLY WEAPONS 5 EMBEZZLEMENT 0 FRAUD 11 GAMBLING 0 MALICIOUS MISCHIEF 4 NARCOTICS 94 SEX CRIMES 7 FORGERY 0 OTHER NON -CRIMINAL 40 Total Part II Arrest: 576 Beat Total = Part I Crime + Part it Arrest: 967 BeatAve. ( Agency / Beat ): 231.3 Agency Wide Total = Part 1 Crime + Part II Arrest: 3,238 Beat Total as % of Beat Average: : 413.8% (120% is considered high crime area) Prior Report Number: 398S328R Oct 21,2015 -a - 3:27:33PM 198 of 498 ITN. aVIS Required) Parameters Reporting Period: 01/2015 to 09/2015 Agency: NATIONAL CI T Y ABC Report 2015 ABC Report by Beats Optional Parameters Geographical Area: Group by: Beat 023 Prior Report Number: BEI8S328R CRIME TYPES . CRIME TOTALS CRIMINAL HOMICIDE 0 FORCIBLE RAPE 3 ROBBERY 35 AGGRAVATED ASSAULT 41 BURGLARY 39 LARCENY 255 MOTOR VEHICLE THEFT 52 Total Part I Crime: 425 ARREST TYPES ARREST TOTALS SIMPLE ASSAULT 10 OTHER PART II CRIMES 211 CHILD AND FAMILY 6 DEADLY WEAPONS 4 EMBEZZLEMENT 1 FRAUD 1 GAMBLING 0 MALICIOUS MISCHIEF 2 NARCOTICS 66 SEX CRIMES 1 FORGERY 0 OTHER NON -CRIMINAL 36 Total Part II Arrest: 338 Beat Total = Part I Crime + Part II Arrest: 763 BeatAve. ( Agency / Beat ): 231.3 Agency Wide Total = Part 1 Crime + Part II P.rrest: 3,238 Beat Total as % of Beat Average:: 329.9% (120% Is considered high crime area) Oct 21, 2015 199 of 498 35 3:27:33 PM ARIAS Required Parameters Reporting Period: 01/2015 to 09/2015 Agency: NATIONAL CITY CRIME TYPES CRIMINAL HOMICIDE FORCIBLE RAPE ROBBERY AGGRAVATED ASSAULT BURGLARY LARCENY MOTOR VEHICLE THEFT Total Part I Crime: ARREST TYPES SIMPLE ASSAULT OTHER PART II CRIMES CHILD AND FAMILY DEADLY WEAPONS EMBEZZLEMENT FRAU D GAMBLING MALICIOUS MISCHIEF NARCOTICS SEX CRIMES FORGERY OTHER NON -CRIMINAL Total Part II Arrest: ABC Report 2015 ABC Report by Beats Optional Parameters Geographical Area; Group by: Beat 024 CRIME TOTALS 0 2 10 36 18 61 49 176 ARREST TOTALS Beat Total = Part I Crime + Part II Arrest: 545 BeatAve. ( Agency / Beat ): 231.3 Agency Wide Total = Part 1 Crime + Part II Arrest: 3,238 Beat Total as % of Beat Average: : 235.6% (120% is considered high crime area) 6 268 7 5 4 4 0 4 44 1 2 24 369 Prior Report Number: B98S328R Oct 21, 2015 -7 200 of 498 3:27:33 PM -Mai AVIS Required Parameters Reporting Period: 0112015 to 09/2015 Agency: NATIONAL CITY CRIME TYPES CRIMINAL HOMICIDE FORCIBLE RAPE ROBBERY AGGRAVATED ASSAULT BURGLARY LARCENY MOTOR VEHICLE THEFT Total Part E Crime: ARREST TYPES SIMPLE ASSAULT OTHER PART II CRIMES CHILD AND FAMILY DEADLY WEAPONS EMBEZZLEMENT FRAUD GAMBLING MALICIOUS MISCHIEF NARCOTICS SEX CRIMES FO RGERY OTHER NON -CRIMINAL Total Part iI Arrest: ABC Report 2315 ABC Report by Beats Optional Parameters Geographical Area: Group by: Beat 441 CRIME TOTALS 0 0 i1 0 0 0 0 ARREST TOTALS 0 0 0 0 0 0 0 0 0 0 0 0 0 Beat Total = Part I Crime + Part ti Arrest: 0 BeatAve. ( Agency 1 Beat ): 231,3 Agency Wide Total = Part 1 Crime + Part II Arrest: 3,238 Beat Total as % of Beat Average: : 0.0% (120% is considered high crime area) Prior Report Number. 398.9328R Oct 21,2015 201 of 498 37 3:27:33 PM South Bay community change project Environmental Scan For Alcohol License C.U.P. Gamma Produce 1605 East 4th Street, National City, CA 91950 November 25, 2015 W.L.7 41ti fa ntbh PkQDU & Photo of Gamma Produce in National City Google Earth View of 1605 E 4th Street . and Surrounding Area This environmental scan is for an amendment on the existing Conditional Use Permit for the Gamma Produce market, located at 1605 East 4th Street in National City. The applicant is applying for a Conditional Use Permit for sales of Beer and Wine. The business is located at the intersection of Palm Avenue and East 4th Street in National City. Currently there are six (6) active licenses issued for the Census Tract is 0118.02. This number exceeds the census track allocation of 1. An environmental scan was conducted on Wednesday, November 25, 2015. The business is the Gamma Produce, a market with sales of groceries, fruit, vegetables and meat. During a scan of the business and property the following was noted: The business is a small business located alone on the property. There are single-family residences, multi- unit housing and one church in the immediate area. Funded by the San Diego County Health and Human Senesces Agency 2615 Camino del Rio So. #300 San Diego, Califomia, 92108 • Phone: 619.476-9100 FN Fax 619.476-9104 www.gubficstrai'egries org 202 of 498 Youth Sensitive Areas The business is not located near any youth sensitive areas. Churches The business is located across from a Christian Church at the West side of Palm Avenue and East 4th Street in National City. Outlet Density According to the ABC, seven (7) on -site licenses are authorized for Census Tract 0118.02, the census track within the area of which the Gamma Produce is located. Currently there are five (5) off -sale licenses issued for the Census Tract is 0118.02. This number exceeds the census track allocation by 1. Green Arrow and ' :: " " Depict Applicant's Location for "GAMMA PRODUCE MARKET" at 1605 E 4t Street, National City. Yellow Circles Depict Existing Alcohol Outlets in Applicant's Census Tract and Other Nearby Census Tracts Map from ABC.CA.Gov Website Showing Alcohol Outlets in National City 'rhe South Bay Community Change Protect is a project of the Institute for Pudic Strategies and is funded by the San Diego County Health and Human Services Administration Page 2 of 3 Mailing Address: 2615 Camino dot Rio So. #300 • San Diego, California, 92108 • Phone: 6119,476-9100 • Fax: 619.476-9104 wit.w.publircstrateoies.org 203 of 498 sV Census Tracts Off -Sale On -Sale Tract 220 Establishment is within this tract Allowed: 2 Actual: 4 Number Above/Below Allowable: Allowed: 5 Actual: 3 Above/Below: . Neighboring Census Tr acts Census Tract 0118.01 Allowed: 2 Actual: 2 Number Above/Below Allowable: - Allowed: 4 Actual: 4 Above/Below: - Tract 118.02 Allowed: 4 Actual: 5 Number Above/Below Allowable: — 1 Allowed: 7 Actual: 7 Above/Below: - Crime Rate Refer to National City Police Departments report for crime statistics. Considerations South Bay Community Change staff spoke to the owner, Mrs. Susan Maza on November 25, 2015. She let us know that the hours of the alcohol sales would coincide with the store hours Monday -Friday 7:30 a.m. to 8:00 p.m. and weekends 7:30 a.m. to 7:00 p.m. She has had her business there for the past 16 years wants only to provide the beer and wine for her direct customers. We would recommend that the current conditions continue and insure that the staff, management, and owner attend the Responsible Beverage Sales and Service training. The South Bay Community Change Project is a project ni the Institute for Public Siralegies and is funded by the San Diego County Health end Human Services Administration Page 3 of 3 Mailing Address: 2615 Camino del Rio So. #300 • San Diego, California, 92108 • Phone: 619.476-9100 • Fax 619.476-9104 www.pubticstrategies.org 204 of 498 :dust 2_5, 2014 ,j Ca risusTracts 2010 205 of 498 1:45,467 0 0.375 0.75 1.5 mi • , •, S r 1, 0 0.5 1 2 lom Sourooa: tiN, HERg, Wound, TomTan, tf,termEc. increment P C« tom, USGS, FAO, PPS, NRCAN, Geot3 ION, Kadin -tar iL, Oaker BvveY. Earl Jeps,, MET', Earl China Mora Kong), swleslopo, Mapnyl dia OrerSkesthtvpcorkihutore, and iha GI UserCommuiity cg z GALIPOnritit Clary azate CITY OF NATIONAL CITY - PLANNING DEPARTMENT 1243 NATIONAL CITY BLVD., NATIONAL CITY, CA 91950 NOTICE OF PUBLIC HEARING CONDITIONAL USE PERMIT FOR BEER AND WINE SALES AT GAMA PRODUCE LOCATED AT 1 606 EAST 4111 STREET_ CASE FILE NO.: 2015-28 CUP APN: 664-050-19 The National City Planning Commission will hold a public hearing after the hour of 6:00 p.m. Monday, May 2, 2016, in the City Council Chambers, Civic Center, 1243 National City Boulevard, National City, California, on the proposed request. (Applicant: Susana Maze) The applicant is requesting to sell beer and wine for off -site consumption between the current operating hours of 7:30 a.m. to 8:00 p.m. Monday to Friday, and 7:30 a.m. to 7:00 p,m. on the weekends. Beer and wine would be stored in a cooler located in the rear of the store. Information is available for review at the City's Planning Department, Civic Center. Members of the public are invited to comment. Written comments should be received on or before 12:00 p.m., Fay 2, 2016 by the Planning Department, who can be contacted at 619-336-4310 or planning aI' nationalcityca.aov If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing. NATIONAL CITY PLANNING DEPARTMENT BRAD RAULSTON Executive Director 207 of 498 4.5 1N THE MATTER OF THE APPLICATION FOR A CONDITIONAL USE PERMIT FOR 1605 E. 14TH STREET, NATIONAL CITY, CA 91950 Dear City of National City: Please accept this letter as my opposition of a Conditional Use Permit for 1605 E. 14th Street, National C1ty, CA 91950. REASONS FOR DENYING THE APPLICATION OF A CONDITIONAL USE PERMIT AT 1505 E.14ih STREET, NATIONAL G1TY. CA 91950 1. Whether the issuance involves an existing business with a license which is being transferred to a new location and which will not result in an Increase In the total number of off sale retail liquor licenses or on sale retail liquor licenses In the census tract in which the business would be located? Applicant is looking to add a Type 20 license to a Census Tract that is already over -concentrated with off -premise alcohol related licenses. However, in order to add this license to the census tract, Applicant must receive a Conditional Use Perrnit (CUP). There are 2 licenses allowed and currently the census tract Is over -saturated with 4 existing. Allowing a CUP at this location would increase the already over - saturation rate to 5. This Census Tract does not need yet another off -sale alcohol license. 2. Whether the business, by reason of its location, character, manner, method of operation, merchandise, or potential clientele, will serve a segment of the City's business or residents not presently being served? No. Currently there is a liquor store directly across the street However, this liquor store does not appear in the staff reports or recommendations due to the fact that it is located in the adjoining census tract. In addition, although the proposed location is described as a market that sells produce and meat, it in fact is a convenience store that is looking to have beer and wine as its primary product. The Applicant has listed the business for sale, and it marketing it as a - convenience store. Attached is the listing, which states, "Great opportunity- for a buyer to 208 of 498 come in and increase business by adding Beer & Wine, Cigarettes, Western Union, Check Cashing, Dell and much more." This means that if this location is granted a CLIP, the new owner can make any changes to this store. including, making it a liquor store. The building is only 2,400 square feet and cannot be viable as a market. This location has been In existence since 2000 with the current owner and has operated without an alcohol license. However, now since the owner is looking to sell the business and building, we would not know the intention of the new owner. if the intention of the new owner is to operate as a beer and wine store, than It would be proper to have them thoroughly investigated by the police department through the Public convenience and necessity process and also through the Conditional Use Permit process. Remember, once you approve the CUP, this location will therefore be approved for placement of beer and wine off sale alcohol license by any owner as the approval of the CUP runs with the land. Again, there is already a corner "liquor store," directly across the street. This area does not need a second alcohol store on that corner. National City has enough liquor and beer and wine stores and specifically this Census Tract is already oversaturated. Therefore, any of those stores would serve any segment of potential clientele who is looking to purchase beer or wine. 3. Whether the business will be located within a 600-foot radius of Incompatible fadlitles, such as public and private schools, day care centers, churches, park, homeless shelter, and alcohol rehabilitation centers, and facilities designed and operated to serve minors? Although not within 600 feet, El Toyon Elementary School/Recreation Center is located at 2005 E. 4th Street. This is approximately BOO feet away from the proposed location. Additionally, there Is a church located at 125 Palm Ave., National City and is located across the street from the proposed location. Therefore not one, but two incompatible facilities exist in the immediate vici�aity. 209 of 498 45 i 5. Over saturation by double for Off -sale establishments; 6. ABC states- Area is considered "High Crime Rate," The census tract Is "Over Concentrated;" 7. Crime rate for Beat 21— 413.8%, nearly 4 times the rate of a "High Crime Rate" defined by A;c. (5ee Attached National City Police Department Alcohol Beverage Control Risk Assessment) Giving this location a license to sell more alcohol where a risk assessment was performed and the police department concluded that there is additional risk of more crimes, including assaults, robberies, and other alcohol -related occurrences, is akin to playing Russian roulette. Crime is sure to increase as a result of an additional alcohol license being issued. 6. Whether the issuance of the license will promote the goals and policies of the City's General Plan, any applicable specific plan, or any similar policies that have been adopted by the City Council? No. This location is redeveloping towards increased residential with affordable housing. Adding an additional store where alcohol can be purchased would not promote that goal. There are already numerous locations to purchase alcohol within feet of the proposed location. Again, there are schools, parks, churches, and also residences, all within feet of this proposed location. 7. Whether the application Is for a premises where a previous license has been revoked within the previous one-year period? No. S. Whether the applicant has been convicted of any felony? Unknown. 210 of 498 0. Whether the premises are located within 100 feet of residentially zoned property, If a parking lot exists for the benefit of patrons then the 100 feet begins at the perimeter of the parking lot? Yes. There are numerous residences throughout the area and even across the street facing the store. These residences already face one liquor store across the street and numerous stores and gas stations that sell alcohol in the area, They deal with the hassle of drunk and disorderly individuals, traffic, noise complaints, loiterers, etc. These houses are within feet of both a liquor store and the Applicant's store. Further, there is a petition being circulated among the residents in opposition of this application to allow for the sale of beer and wine. i0, Whether any other information supplied by the applicant, or other competent evidence shows that the "public convenience or necessity" will be served by issuance of the license, When Consideration is given in determining "public convenience or necessity," any one of the foregoing guidelines may be sufficient grounds for denial. Each application shall be judged on an individbual basis and any one criteria or combination of criteria may be waived as the result of imposed conditions? There will be no public convenience or necessity that will be met by allowing a Type 20 licensed location to exist at this location. it will be in direct opposition of public health, safety, and welfare. The vast majority of local residents, schools, and nearby churches are against an additional alcohol related business at this proposed location. Allowing this location to operate as a Type 20 location will more than likely add to the already overseturation of this census tract. If you approve this CUP, the oversaturation rate will increase from 2 license allowed and 4 existing to 5 existing, This license can also be moved to any approved location In the census tract in the future and if you approve this CUP it will runs with the land. This proposed location is simply wrong. It is too close to schools, residences, churches, and other alcohol related stores. The attached pictures will show Just how close the proposed location is to houses, schools, and a church. 211 of 498 47 Again, the Applicant is in the process of selling this store. They are marketing It as a store with potential. Specifically, they are marketing all products and services normally sold by liquor or beer and wine stores. The advertisement, which Is attached, speaks of great opportunities if you add a beer and wine license, in addition to cigarettes and check cashing. This location is destined to becorne yet another outlet to purchase alcohol. There are too many children and residences in the area, crime is already substantial and considered a high crime area by the Police Department, there are schools in the area, a parkin the area, an oversaturatinn of alcohol licenses In the area (2 existing, 4 allowed, and does not include the 3 on -sale premise locations in the census tract), and that does not Include the liquor store directly across the street from the proposed corner because it borders an adjacent census tract. i.,„x (! Z - 212 of 498 kV 11anal 04161 ACktrt ISOS olthlikost OMR! Olatharl Clot Ask 13SID , n kitiSSot f04,200 RSV Opliaload Ns** sfAfors Wens •Roan Mae Short fall eto • itlestatrftfotial Noss *sours . • 4.1541.101.40.00•14egagm. Pot Meg *Ass Ottosa anu $0403011 OOMS Soid-Falat tiff a Wit Dim urg1t3 14ONI0d ea* atteinui *aft COI 4)x•rh soorfipg NA suencgo KelpIkitg***4 Naas& Siffig466e. 1140411,10dote Owe Nub/ Ma Ji614 menr d Lett". iPPDA alkatattielli 40/0t.elrIl Jo n. 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ReSelifth '00.% VA•i0 • • '14,!1171,M1x elk ky.:mtra gktiprit Aht 4Lk r- - • a... r".5, • • W.... ,•Irr 214 of 498 of 1Bo& /*I Si ltreiedIrwaetmard PL main., ,st..ena m h•. • o y f rma dUlti.F tnnq Pat/ ( +!! Save 121 Share I National Citr. CA 91950 Income/Investment 180* Days on Trulia Edit Home Facts 100} Rentals in this Area: Search Nearby Renters Merck Your Equifax Crsd$t Score reN E1 For 7 Da<ya1 Property Details for 1605 E 4th $t 180+ trays an Treks a. deecridtian provided by t ruin I005 itt g4tn is boosted at 1605 East dth Street. H i onai tatty. CA.16OS E 4t8 St is in the 91080 ZIP odds 4n Wens! City, CA. The gooey trtk+B P► for Z P oode 91050 is 6340.585. i a Hide tbia form Find out more. Contact a local agent YctrNarte .M... Photo Email tarn interested le NOS 4Ur *Alt ah,CA91950, Get Mere Info evandlegoprweeEa%NAT eriedrUm Pr See your commute times 4141aszeamptinLmN9Rott oawir! s1i:r?tp�Poo maim nrk.ik Mg* i inr AM01 A%.,1.j 215 of 498 51 NATIONAL CITY POLICE DEPARTMENT ALCOHOL BEVERAGE CONTROL RISK ASSESSMENT DATE: 12/03/15 BUSINESS NAB: Garrla Produce ADDRESS: 1606 East 4th Street, National City, CA 9195D OWNER NAME: Carlos & Susana hazel Dom: Not Disclosed OWNER ADDRESS: 1805 East 4th Street, National City, CA 91950 /add additional owners art page 2) I. Type of Business s l Restaurant (1 pt) I Market (2 pts) l3ar/Night Chub (3 pts) 1I. Flours of Operation 11 Daytime hours (l pt) 0 Close by l0pm (2 pts) [:1 Close after lOpm (3 pts) HI. Entertainment D Music (I pt) D Live Music (2 pts) ❑ Dancing/Live Musk (3 pis) IV. Crime Rate ❑ Low (1 pt) O Medium (2 pts) I High (3 pts) V. Alcohol B_usincsses va Census Tract it Below (I pt) 0 Average (2 pts) 4ii Above (3 pts) qqaffirdadMilliai Notes; Crime Rate - over 120% (413.8%) Census Tract - 220 Allowed Type 20 - (Off -sale, Beer& Wine) Currently allowed On -sale - 51 Currently have - 3 Currently allowed Off -sale- 2/ Currently have - 4 Over saturation Revised: l l!l 1 1 of 2 216 of 498 National City Polio went VI. Cells_for Service at Location (for provijis 6 months) D Below (I pt) I Average (2 pts) 0 Above (3 pts) VIL Proximity 4scssraent t•l14 tailstadius,pocatjon' t7 Mostly commercial businesses (I pt) 0 Some businesses, some residential (2 pts) ivlostly residential (3 pts) VIII. Owner(s) rccords check gi No criminal indents (0 pts) ❑ Minor criminal incidents (2 pts) O Multiplc/Major criminal incidents (3 pis) ABC Risk Assessment Love► Risk (12pts or less) Mcdittm Risk (13—18pts) Ifigh Risk (l .9 - 24pts) To Poiraft 15 OWNERNAME: Carlos Maza DOB: Not Disclosed OWNER ADDRESS: 1605 East 4th Street, National City. CA 91950 OWNER NAME: Susana Maza DOB: Not Disclosed OWNER ADDRESS: 1605 East 4th Street, National City, CA 91950 Recommendation: - !CPO does not have a proactive enforcement unit for ABC outlets. Within 100' of residences, El Toyon school and park near -by. - (5) on -sale and (2) Off -sale licenses are allowed in the census tact - Census tract 220 currently has (3) On -sale and (4) Off -Sale. - Over saturation by double for Off -Sale establishments. - ABC states - Area is considered 'High Crime Rate,' The census tract Is 'Over Concentrated.' - Crime Rate for Beat 21 - 413.8%, nearly 4 times the rate of a "High Crime Rate" defined by ABC Completed by: Graham Young, Lt. Badge 1D: 365 2 of2 217 of 498 5.5 eet 200 earth meters so A 218 of 498 We, the undersigned, are residerice and 1 ar work National City, California. We have been made aware that Gam Produce and J or a representative have armed for a Type 20 (Beer and. Wine License) at 1605 B. 4th met, National City, CA 919M0. We feel that the aeon ealt alcoholic beverage outlet at tbis location will be detrimental to the public safety, Real& aad i of our children this ee mlun ter, I am ,mac die ego of 13 and 1 emi N f' Ri. SVPPORT of this license application#Conditional € se Pewit k Swim pArrTo .� 1Treed this rage = DR `1'l[1 DA'1' f NOXTOtti: 449-TioNAZ c147G i 6161) —La )) 30 1.4-#41T'J / gtQ. t ,4/ . 4 , - 515-a 374 (..ccey crd 4.M0 7 �.� ,'arty. ff a_3 f 10 r "A*, !J ill all ''"..�,;.,..,d .. `0hliel°41P, fri,(4//zonotne:4*-- J • Alliff4 a AljeiSk filfof 1 1 ti !Iv Page 219 of 498 We, the undersigned, are residence and / or work in National City, California. We have been made aware Produce and / or a representative have applied for a Type 20 (Beer and Fine License) at 160$ E. 4c' Street, National City, CA 91950. We feel that the OM= of an alcoholic beverage outlet al this location l be detriment?l to the public safety, Health and welfare of our err and t aornnnnnity.1 am o'er tine age of 13 ind Y am NM IN d1RPOR'F alas license application / Conditional Ilse Permit Total t1 page -.Pave of 220 of 498 Wei the vadersi gn are residence and 1 or work in National City, California. We have been made evoke that Gam ?roduce and ! or a representativehave applied for a Type 20 {Beer sad Wins License) at 1605 B.4a' fit, National City, CA 91950. We feel dial the addition of es alcoholic beverage cadet at this location Avili be detrimental to the public safety, Wealth and wane of our chip and tbis cotanmnity. I an over tba age of 18 and i am 7T ).N SUPPQRT ofpis license application/ Conte Use Permit. ef)e* vfreA ci914-iviti °Scar, Da"- alp. '.ice f • {' DRESS TELEPHONE DATE. _ LO1ONAL /AvAd'Ala ow pig 41 - a. -P-f4 "he. 9/pro - .t0e51 - - - c(11 1,0101cgi. z-/lia gee/7: 63`f- IAT-17 (2/ 114 PatA4 ifoqbe h #lf Met.,1470-‘ 54445_ 71.7- 4` fier od41 "Zit .04 6274lap 09p !I''L eir 9im$&r 1 A;71 A jh k. __lit . Av .. J` dA .r 5 3333- Tctal dais page' Pago of 221 of 498 We, he undenrIgned, are reside and / or work in National City, California. We have been merle wore that Gana produce and l or repteseutative have steed fox a rype 20 (lit and Wine Lice) at 1605 E.46 e*, National City, CA 9I95 We feel that the addition of. an alcoholic beverage outlet at this location will he detrimettal to the public sty, flees and welfare of our children and this Styr am over the age off 18 and I am w4 ;N grapeRT of8ba license application 1 Cotational Use Pit. • Nam' ADDRUS TELEPHONE DATE ; OPTIONAL a 4, r . .cri#4* 4p-/-, _clef + /t ii.. i . ,eiv. - • leYA, -.'„re" ' -"Pr .., 6.4# • f icIrktoiti Ilr. ii Sr ittie, 001 . 1 i i .5" ii" . .' ti 1D'Aea f , ,C440* CkCI • 9' .2°ft /' r .t,4. sue: iti 603ecteft - 7 ci aer.4417".2 Sich . ii: 1 C SS g t r jT . r. s.«A�'.r_r'+• .lK� • 1 - +/ .y_, .i•.,� w _ l} F ti'�f ,t 7 92r' 0 /JJJ 0 -.lead M J aPi, Nr ryeyy��,'1/�C7rn CVO�Q Mr ram* ie.i I thispage iii, Pap _of 222 of 498 • Wo.Ihe used, ara =amigo and (twat in National . California We have been wade UNIAKe that Coma Pry and / or ktrepresonative have applied for a Type 20 and WI= License) at 16OS E. elites*, Naticera Clizi, CA 91 0-. We &el thai The addition alp au ilia beverage outlet etWs location will be detrimental to lhe pubes salty, Peel* of ear chikingn and this oaf. I sai over tiro Aso of 3 8 and 1atim KOTJ[&WORT daft 1% / Coalitional UseTennit Qta40121 Total this page+�. DMZ ./.4e4fe.. Tito (omoriAL) 1 Imo/ 1 ]d. �. ig JJ j�f',,../�� //ma ��,j.�.� y. �y,� `Y�YJ'�i �I ��y q• y f ry ei 20s. br f7fl . /Fyn icir so e t °r " 93z /417, Gif) 76r- C7 S Page of tagi 4 Viet 223 of 498 We, the undersigaed, are askance and I or work in National City, California. We have been made aware tbat Gem Produce and / or ,a repreeentatIve have applied for a Type 20 tod Wine License) at 1605 F. 4th St iu#, National Cam, CA 919511 We feetthat 'addition of, as alcoholic bye outlet at this lacetion will be del to the public safety, flculth mad wean of our children and this oonimparaityjank over the age of 18 and I ant liar IN SUITORT of this lip application 1 Conditional Use Pent& Total this page Po ni nc e.44-0(4iv s7a °ss 505- -?../Allyi Le" /-irj 7 s—S. 16 -2/2/ 25/0 Eigt- - `i 5 (Poi Li7i-stit Vpszhi, Page of 1 224 of 498 W4 the old, arelesidonco and / or work &National City, Via. We have been made avian that Gams Produce and 1 or a =presentative have applied for a Type . (w and Yine tic, ) at 1605 13, el %eel, National City, CA 91951k We *el that the aeon c ea alcoholic beverage °odd at this location' be doichneadal to the public =My, teal* and wolf of *Mpg& and may. I en one tut age of 18 an4 I in j cri feeds license applinatIon! Use lift. ADM= DATE tv} Tr'irtejitervuet ' • pC 1 O tt' - . i Z 4t .( .e 'r, tom.'. . - * -'� _b_p2SzA.. a a.�. '..iiisi•' d 11 1 tIF JIIPT Alir i r Total fhb pago� _ 9vo 1.A1 134 Otifr3/4-uc;),,,,04(tylk. .4fto 44-05-z2-, s i tatvcr kpilt,64 V coi.qaco C i 177 rc O , r " i/�. i;' I p. 51" .C11-4114-57) I 2L-LASttif_ib g_411 it6 1 Z p -` 1 160 i*i �. :Jr .L . E zfrl 1 AA I411'T 9 Imo 0 /- 97 7 / 2 i4 Vol Page of 225 of 498 We, the undersigned, are residence and! or work in National City, California. We have bean made a "hat Game. Produce and f or a ; . ::,, ve have scplied for a Type 20 (Beer said Wine license) at 1605 E. 4� Street, National City. CA 91950. We feel that the a of an alcoholic beverage outlet at this locates will be dotal to the public safety,. !With amd welfare ofour children and this community. / am over the age of-8 and 1 marl oftbis License application I Conditional Use Patten. NAM ._^ AMEN TELEPHONIC, DATE (OPTIONAL) ? t F'1i‘i 1$1,04 Cr att +►`=-- ' 1 . A"r 1675 { 3 Z_3_ 53 1' '"Sifts 0/000- t 4 Ala ' 4*X- ivl kig ide-e44.t atiqc:46Ifstozolerg,e 1: _.-gqo "? 5 0 ' 4 A - /9f_o ei ct io J75b 7 ,Ap,..c.,---m.,&,,k- 0-4,600 ,,ir., ,--- / trip-i tAl4 VI 64. P 6 C.4, 9' osso - ID- ji� i i - � .t 14A-no�,tr C,1T f TiL b S►f . 9 WC, C-i. '9 i43ck rle " 0244 1, i h_._v_iees4 itieLesividy fliPro Gl9 4 I E -o ff"CAOK ce,Esiot. cs*Ar..1 N15 e" g pib ST. Orrio614 t. ct 17Y/,5 V75-0 4 04- 24 7-tVit Mov-ri&m. ILi3Li E 9--t.E tOc eAci q Mg° 47 iq qo qoao 1 r 0 Q 1 I` +' i n • Ir lOwa - le C&01- `) i'� 2- 0 WC. C. i, hn'N. ' 1ir1f , . / T ` C r I 7 Y 0 C ! 1) re t4 C f q1 $• S/�1I V. R / V I f 1 Virc3 S. Z - 2 /.�V� QS i. L IA f A *Ri4 ,�j v w�.rf L LD W 1tra+ t f.�J ay-tii�r �I^ J 4,1) any 45;4` 1,1 or7tt` ' . �...0. Total this page Page of 226 of 498 We, the under:41W, cre reside= aid / ca• work m National City. California We have been made aware that (a Produce and / or a representative have plied for a Type 20 peer and Wine Thome) at 1605 E. 4* Street, N City, CA 91950. We feel that the addition few alcoholic benne o det at this location will be detrimental to the public malty, Health and welfare emir children this comananity. I a i over the age of 18 and I aaa NOT IN IFITRIFORTofihis Home application f Conditional Use Prat, q05 Love . c 4 3 2,0 Total this p Page of 227 of 498 We, the signed, are residence and / or work in National. City, California. We %ve been made aware that Gana Produce and l or a repmentative have applied far a Type 20 (Beer and inai icense) at 1605 E 4th Street, National City, CA 91954. We feel filet the additive of an alcoholic beverage outlet at this location will be de ental to the public safety, Healliiais' wvlfare of our children and this community- i am over tb: age of 18 and I am nak,IN SST ofthia license applieadeta 1 Co n:ai Use Peralt ADDRESS T—TireflONE DATE (OPTIONAL) 4 }jam/ . j f/ eX -xl . �,04'994z) 4,/,- P? 1 yy�� {�,y�• 1 . v W.r �f",J tit � {�� if -if ■{y- *�y/*y+lj� .J t" fr 4 f -1 . N 117 Y 7 � w Ad r ' 3-1 en,,e40601ANN i. -4 1 (i' e6,61.-N ei-kft if\)c, c'itq.S-0 covq_iir-tioto r ..t. _tom z! ,,. . iz, , J,4a^ , ", Voi"-- 6-42)/t/Ysvem-L" IC 7/ 50 Cl/ 7 -else 4, 4( ,,,,,,,,,,,. --_,,,4, 6'....bdio,mr-A ;/,',1_,---0 -"I=4F- .'J-74--' Al _..e it? , i' T O F q „Pr $rajt1.18 •c. Tk al TiO 1 j Y - `4. ...Dtkikt,„1" • *sr pri". E. g•_'.2--#1 cee , 6=7-,et•oy-7'w,L 1+ I '. 7 . --__ _LATAAV { 6M+` 0f ► / 4 5, Al- e . * / $? API r 7 F 5 Pia , Total this page Page of h,7 228 of 498 We, the uxiersigned, are resider and / oar wit in Neal Cir3r, California.' We have been made aware Gana Pied= and 1 or represeatativa have applied Thr a Type 20 (Beer zmd Wine License) at 1605 l . 4th Street, Nail City, CA 91950. We feel that the additkri of= alcoholic beverage oadet at this location wilt be del to to public may, Health end vivilfue of out children and this sty. I am over the age of 18 and 1 atnAar riq SUPPORT of this Moans* application 1 Condi:lnnal Use wit. N ADDRIMS . . TELEPHONE DATE PTIONAL tkIV , lieD teiliM Mr'-- AkC, i en DS Asogi, Amireir.p/ (64 502 c _. Nc 91cl so713.Eee2 a/ Gig , ohagp LertrAgA d~r 61° 7'.-- S enadgrtAte- WI, q 1 C46_,Ca. kg S341-0511 72/04 eak_-1"irel-76r_nya„.,310 iwkrf ,2\ . f31,1 E._. - _AZ ctici '• 9'3 )- 41if TOtal this pa Page of t1 229 of 498 HANDOUT Item no. May 2, 2016 Public Correspondence received in opposition to Gama Produce CUP application. • Letter and petition from National City Apostolic Assemble of the Faith in Jesus Christ church (54 signatures) • 11 letters of opposition from community members • Petition in opposition (partial version attached to staff report) —168 signatures 230 of 498 National City .ApostolicAssembly of the Faith in ChristJesus 125 Pain; Avenue National City, CA91950 Office: (619) 474-5643 Senior Pastor: Misael Zaragoza I am humbled to stand before the distinguished members of The National City Planning Commission, community leaders and fellow citizens. As a representative of my local church congregation: Christian Center ofNational City, I speak on behalf of our membership, ministerial body and council of pastors. Since 1962, our church has been a productive member of this beautiful National City community. Through the years as National City has grown, we too have grown. Presentlyour congregation is over 600 members strong; many of whom are filled with a deep passion to see positive change occur within their community. The health and well- being of our community is important to us. As a congregation we have united together to oppose the Conditional Use Permit for Beer and Wine Sales at Gama Produce. We contest that or community is already struggling heavily with substance and alcohol abuse; the inclusion of an additional alcohol distribution location will only exasperate an already delicate situation. Since October 2015, there has been ova 145 alcohol Lelated crimes all within a. one -mile radius of our local congregation at 125 Palm Avenue, National City, CA. Our Church property and Senior Center apartments are both one -minute -walks from two businesses that distribute alcohol: Alotta's Cocktails and Ranch House Liquor. Both occupy comers on the East 4th Street/Pall-n Avenue intersection. If Oama Produce is allowed its license, we would have 3 of the 4 corners on the East 4th Street/Palm Avenue intersection distributing alcohol. As citizenswho love National City, we are concerned with the prospect of having our civic leaders permit an additional alcohol permit in an area that is less than one mile from two elementary schools (El Toyon Elementary and Rancho de la Nacion Elementary), one public park, a public hospital, as well as being less than one minute away from the Interstate 805 onramp. `And are built Capon the form. of m of the apostles and p asi Himse6cbeing the chief corner stone. "EPH SSIA S 229 231 of 498 In response to the heavy sale of alcohol, members of our church as well as residents from our church Senior Center have been discouraged from patronizing businesses on the East 4th Street/Palm Avenue intersection. We now provide nutritious snacks and beverages —at no cost— to our children to ensure that they do not patronize any establishment that participates in the deterioration of our community. Although this comes at a financial costs to our church, we feel that it is a small cost when compared to the long term benefits of an alcohol free community. In 2003 we were proud to establish Integrity Charter School on our local church property as a means to provide quality education for the underserved in National City. It was the first charter school approved in National City, California. Unfortunately due to the close proximity to alcohol distribution as well as the higher crime -rates associated with alcohol use, it was deemed necessary to move to National City Boulevard. It is discouraging for us to have to take such measures to protect our children from the heavy distribution of alcohol so close to our place of worship. When we heard the possibility of another alcohol license was being considered our congregation was moved to act. We are absolutely opposed to the Conditional Use Permit and hope that you make an honest effort to consider our concerns. As a testament of our disapproval, we respectfully submit a petition singed by our membership in opposition to the proposed alcohol permit. The Christian Center of National City is proud to support our community. Thank -you for giving us this opportunity to voice our concerns. c)t 232 of 498 We, the undersigned, are residence and / or work in National City, California. We have been made aware that Gama Produce and J or a representative have applied for a Type 20 (Beer and Wine License) at 1605 E. 4t° Street, National City, CA 91950. We feel that the addition of an alcoholic beverage outlet at this location will be detrimental to the public safety, Health and welfare of our children and this community. I am over the age of 18 and I am NOT IN SUPPORT of this license application / Conditional Use Permit. NAME PeLy t.) ADDRESS TELEPHONE (OPTIONAL) DATE adlq �. iofht\ Pfrv-Mr1--26, qtf5d &Z,56/'-/o/6 it/ „i"z_517Z, /7/72/j/96-0_ vt,i-sa.Y.," V3-0 3,(e ve_ c, r(tr50 ,0c1/c 4 Ir € ,c • j 9',5 0 Ic*fl'CL_ Cyr ( te 4i- ¼2 iNc Total this page )11AV 41 57 . 1 17451 -� - Actt.,0 IfIqj ati CA I Gil q 5-0 -30 P `)'lair, s S- 3DG 97?f 0 PLiA4fv Page ' of /6- 233 of 498 We, the undersigned, are residence and / or work in National City, California. We have been made aware that Lama Produce and / or a representative have applied for a Type 20 (Beer and Wine License) at 1605 E. 4th Street, National City, CA 91950, We feel that the addition of an alcoholic beverage outlet at this location will be detrimental to the public safety, Health and welfare of our children and this community. I am over the age of 18 and I am NOT IN SUPPORT of this license application ! Conditional Use Permit. NAME ADDRESS e nAt itte ,t4Ft. rive-. ,v . C CPI eub, ate. d c TELEPHONE DATE (OPTIONAL) ,,620 tic; ig cL 0 c-.) ' 1146 E LiPi A) c go, , 9 (6/5— ,;---(--/ c. t igt is-,4:67-X r 7[4,13 5--o -IL {-,,z-:d4 S ,, k, / `V r * L 3 V 5-. F (e cCe.6., V-. Ali-L-Qe. Z- ' SS() 9aLi-c50_______________.-N;,,, C&x,4.2,NV E V e t 5 l& - s---ti - Li ma, +/1 . 304 4 Ai, & e Ay,„#5-- 6 . V' • a l 0‘---i C ! N tiw s 1 ' 1 J -0- 4aleet /31-ra Total this page ,6 p - eib oak 0( IJ&rtcc, z VI (ix 3YZ3 Dipcxsia44 etfianci ,(?50 Page of 234 of 498 We, the undersigned, are residence and / or work in National City, California. We have been made aware that Gana Produce and / or a representative have applied for a Type 20 (Beer and Wine License) at 1605 E. 4th Street, National City, CA. 91950. We feel that the addition of an alcoholic beverage outlet at this location will be detrimental to the public safety, Health and welfare of our children and this community. I am over the age of 18 and I am NOT IN SUPPORT of this license application / Conditional Use Permit. NAME [cerraioD02074,04,4 ADDRESS TELEPHONE DATE (OPTIONAL) i & k-i S V-itor i' . G.eq Nit/_Morir50 ti r i - 75.7:611/9" 'Kadifre-laa -0-112 r / 9 z-- C -(� , % / D,' A L ref 7 7 ( / l .s ' /Cj(5' .T t),. ` a 1 r 3 ` A`` a "C" /03-4--ionc CA —I/9 4jlLo 1 1r a-nwoo1%304"1-6t` `Pep' 70 ( fUocfto (Li r e Aktii ovtaJ qI S ` ' \jazquit S _ ct fel1x-cL, �� t Lacie.. Pcxra� ro 1 -kei1 Total this page 014_ P2)-- ier Nt‘JP'14 CJ) 04- 3Z30c346(.„Li.,„ nivr7 .04C,,,i'(4-cLIA—Cy I\ ICI licii.1-C-fr:Cact5 V15-gel- Page of , 9/9"1" 235 of 498 We, the undersigned, are residence and / or work in National City, California. We have been made aware that. Garna Produce and / or a representative have applied for a Type 20 (Beer and Wine License) at 1605 E. 4rh Street, National City, CA 91950. We feel that the addition of an alcoholic beverage outlet at this location will be detrimental to the public safety, Health and welfare of our children and this community. I am over the age of 18 and I am NOT IN SUPPORT of this license application / Conditional Use Permit. NAME ADDRESS TELEPHONE DATE TONAL) CAI G oq o ! / �.� fu-a of) 6 c f I• sue r:°6 sK . . ('C /' ' r 6 Palms _ L - — — 7 in C C t IAQUA. ^ .@' -1 Oi c p'!, 1 .t.¢ ek ,.r., p\s - 8 I ' °t 7.d.Eiia L ^ 1 i •i C - \darievig 6-Pcf-P, 3002 Fint4 '" S n1 t&M cAl\-1l s j G '7 - c5a fi L - ea_iP ci 7 y ail. A r5'd2S-7-4 .. LiceD 02.0.---• A D 06 fA.--4 tre-kryi-74-4--t ' r,e,- eq___ / 75----0 ILT,A V'c4_,f2-#--R-A---cQr'?--- 3XXr {)i Come_ ? , c . �, . 9( Z (VA- ` . 1, l oCto 'P&I 5,a f (0/27treraS uhe/tA, 5 4,'e r&5 Total this page = 364 . e_aye 4' r o ce 0,Je, %,3 �I5 JiV6 Par i/e. r` ' /a Fiona ( fir' Cizi £1ys' Opt, 3,66 Palm_ ao, — 0+ a£`f .s-.)- , 14 Page o 236 of 498 We, the undersigned, are residence and / or work in National City, California. We have been made aware that Garna Produce and / or a representative have applied for a Type 20 (Beer and Wine License) at 1605 E. 4th Street, National City, CA 91950. We feel that the addition of an alcoholic beverage outlet at this location will be detrimental to the public safety, Health and welfare of our children and this community. I am over the age of 18 and I am NOT IN SUPPORT of tlds license application / Conditional Use Permit. A13)BR6Ellsw, }V' N TELEPHONE VATE c4OT NAL SI' Zeit Total this page = Page, of 3 237 of 498 elre„.e. tivAt low- 238 of 498 gip?' 5elqi,/,17vei7e 114•fiver "ricovoll--- city 914.140/4i ee, vavw7Tc--T 077„.(f eti tri i7c.„ OPP 5 e 7Ae 3eteq- 91/Q/ Wpt/( 11//k",lf f‘t' odf- pad/ e be -cc owl 1ift*e t qteser ot, r get ir.e ra-/- &ye' q /1-eq417 Acpic c crien e. rot.' 4/04( qfr-c I we 40., 04/61 //red MaPe je•esi- AA( tvix, 239 of 498 tiil)e7.0 ,o,entit,/ rl 5 6 CJdL De fi v p 0 emili t=r- 1,1 -/ ite—ce"' o-va- Pro 0/e "V p-1 re/9-diy 1-4ve 0 eep A.7 See-r— icked ce se_ /Lire. a "tic ell iy r "Lie e,o) 1,7 P 240 of 498 f I-114m_ 1413f/44- .0,C Level 9t7 Notrtiortot CI CA Na46637A Cvly PniCfAin .Detr Pkorlin/ Corrowlfee, ofift)*. tker cort Ole 1-1 .1-e vise GC01104 Pr ci4e€ because Lt lot(1 0146 VW' 61•Vg not 4_54 •frteai VtIve 17)(3 0444A cArtme OYNe& Wegalii vJ YY:?cve 6v4 w ine 5-cvms 241 of 498 -Di 2 ---t-� 1(9e,r CV T / eTPAs ice.-- a tv (6-0'1 e- 2-t‘c-e4-efb G".-4-2.04-2- ' r ' . - - We a iY".eK717-e • `' fr, arid. r ? is 242 of 498 !(17-taser-) PA,4144- '9;6 q g Mair-PaRt- (...ler&/ (.74.9n-5-0 VOL42-- 'g.lt t!C7 c.M.(yr r c- bEsar-- ri4E -Qiclotoc&c Actfcet% 02-&: . 243 of 498 OS S 9 . t ate..r r-P1 cR ' 4 't4 Girc,A2Drs.p`' at--.-'Nt Ol► \) `sue? s c�� 0 o f o `?. t -►''ate �_ , T `"' i tee !of 9aLI S-res 244 of 498 Pwa`l'‘I iso"et ilsort-ro `-‘192416 1/2 riji • 20,t449 wt not) 4.401 ionf4 -#1-orYki 4W-1rk, iJ11/4110 # (2-4 4C1 alvfr -)rw44 er4o -21 Ti( -aidoio v-difelvoft7,utnitolvd mod (2.5b//0 • V2 Pew,' *10 7v/i/ 1441-4 h ti .00.4 41117AVO 245 of 498 If* zs s.1/47:1, el ‘ t i rnt 141 Ar, / ) 4 \-v" 1 I \ ' . ),).;) -,%:, \ ,k ..)...A. 1, 't \•‘ 4, , , 04 \ I ;.,.., \ 1,-, A ,..,\.1 ‘ 1 -1 cie, 1 dti, t.,;) (It .4•01‘ 1 A i i ), ..)A, VI f f;n4,‘40\ \\;i: \ *4'l1 41)'1100,0 Vh .144/4k At ‘ ) Pi ''‘i Ph"Mi cet /vV1/4 N 4 ..leAt ‘ ,0i \ sAVils Alk \ Ne ‘‘ k'• \".0%\\‘ k\s ‘rit S 4 'He' 246 of 498 J CNJ t\ RA s L-1 ST Ave: N A t -ry c A owl 0 DeAtt PLAIQ ot4ca Com, trr cc", st),(2 F05E- T4E(Nlm, LALEN.Is€: Fct At ec use i.QF W(LL "A,. 4te--4- iNeLE 1--J°1- CAFE r---c) 3 0. L,Je A L-42e y H \/E "ro (JJ D 400 T ft) 6---GD yv\0 e...E t;---gi (i ic 247 of 498 83 • C.:Act 2?.3 314°' -A hoe. 100,-ir„ ..2 ' ikr3z. 6WJad. r&IK fas4 ....ek ...tom ... ampi a' t/ t- ... oeia cif pr. y4* 15, ,...__ ... otie frtait• -. &......- to .r-_, �eAe&.Q el Q1-7_ is Le ,14'519edifs 0:(00-10 - fir-�► irww- beef:. .dtr'. sqe er.S. .. . i p4 -40 Stc beet, -Aohlel y , 41,0-te- Jams ekt._:.....: r-Ssktie..jet + f :: _, _der _944 - V 444 I - ePunkkil 248 of 498 rs. We, the undersigned, are residence anc / work in National City, Cidifotnia. We have been made aware that (iartatt Produce and or a representative 'rave aliptied for Type 20 (Beer and Wine Licenste)at 1605E. el Street, National City, CA 919511 We feel that the addition f ao alcoholic beverage outlet a this tocallon will be detrimental to The public safety, Health and welfare of our children and this 00nunenity. I am over the age of 18 arid I ant plOT.114511a)Peilyr of this. license application / Conditional UfS0 Penult ri-Aw : ADDRESS TELEPHOIVg DATE • • OPTIONAL ,040.41•N NA a 'V NO14i16A1 414. 4/477olv4t 427'.;,' 41- 1/!,57t, . *44,4i,k-,9> „iter--- i4-,114 17" .14 AS°35.7.1 Si7 la d/ g,f eq--570 (01c4 4/1,.. 0.Sf4E iMi., _fr,..7,..!,,51.014-.3 rz .. Ai a 4 -'?e,; „/ 70 571,--"rs7r1j5e7 mg FiTcp./4. t 4,-7); ?/5'58 • 3 ,•,g-ZIP'Y .0 .0 .,- 4rvk :/4./fAct i i ';:r.Z.56Art 2:101/14 , AV! .iiii .46011.41-M1 qq6 ET 4141 3r ,q,-,17.6afte— c 17(5.m A.,./-fy4 4_ r,- - • (i • wP •e 4_. - - • — .v , ,F - t 4( .3' - / VT); .i.- .&. I-IAKA.1 ,,,„ 0 tg. WM:007 AVF i )JPIVAL ari eift-- 11QM @216b1g0-6941. . ......./41A kt 5.1 we - /'-i.t.--,. e2 701 "i Ishx4-. (...:4.1. q iee-15-o 6/1. --4?-?eltIdo. kilkini) i2 4-t- -4:/ ' .= / ‘ ////1 :i.,`"'fi'l V "I fieoe :147,?-74 101 Pr Age , Mt, 01 N 1 64, f /9 -65 Gil it177.716 nikorAitz 41 1 -,f4frAtP.71 Page4 of__ 249 of 498 We, eundersigned, are tesideneeand 1 or work in National City, -CalifOrnia,We have been made aware that Coma %wit= mut a representative have applied for a Type 20 (Beer and Wine license) at 1605 E. 4th Street,, National City, CA 91950. We feel thar the addition of an alcoholic beverage outlet. al this location will be detrimental to the pane safety, Health and welfare °tour cliddrtn and this community. 1 aro °Ng the age ef 1 g t;n4 I am NOT IN §UPtORI of this Home applitatien Conditional Use Permit - NAME .ADDRESS . TELEPHONE DATE 0 ' ONAL 2. / „or 4:1-411i'' , 4a...tu 'a : ', 4 4162 .,- , 4,, "' 11/P5.4zt444* -: e,, , pig- link' 1 41C PV ( fIr 471-CrO1/416 0,0,4 i+ort 746*Pfrt-°./A-.4.9c. to e tot St I PP 1651 C-- 47 if sr- ortemott Q I/ 4,9 ip,aio A 41- 604 af p),..A 63r, . . 419, 4-0/2 .1 II - ' 4iff° Vatkaom "9477 ra j oe/121 ia4013./r4.- - -ftiAnalSkeili %AV, A? & -Fal.- 4:4-)- 1.c.44„ +La- -. evgg4-4- 671,, c4-1- iMea--0 a. irrip _Aka.. ii.Xe - i 4 , A ,L ,4cet. fr o , cA, / •••• 1t76e6/114 '1 ' i / 7° 9 ,60), it agdaMfg, C ' 44 9/95-0 6e' Iv° -2941 t-17 4 LIA a &",titrCi aLu eUs,2-2- t\Ichelor‘ Avc 14,c. %cis() ct-eout-crt TZ - Clz:l. 7, I : _ .eza ‹.9410"1404 15v-- tqlC6 6/1 , ,. ,...., dit' ai lgot-tt . 521, 2- -c _ erifiti (evresr-evivz_. 2- , a6*--PyKe/(0708- . qr N * lir - VW -3e1679 Total* thin page.= )3 Page Z. of 250 of 498 the alidersigaed. are residence and / or work in Nadonal City-, California. We have been made aware that Garde Produce and / ot a epresenta1Ve have applied for a Type 20 (Beer and WThe LiCense) at 1605 E. Igh SInset, National City, CA 91950. Wet:el that the add 'on of an alcoholic beverage out at this location will he detrimental to the-patdic safety, Health and welfare of OM obildrea Md this community. I as over the -age of 18 and ram NO ON 8.101491LT 441* " C6114116°1181 Use PeruliL • t!!'! Ar t /-?) (3t,• 'miss ,N7,1 /416e0eAft Ale•aft e DATS ONAL ecy 2 / V.#12 - 'Pt,- tel9 AkeAVI# ..-e! .atiiik — -, .:• • ye, , 77 rz) 4 CO 11 .ke I 4 155Ca ri1 /16 641.0 Ikti.e il-p- # it ne4,1,....‘ co,54411;%052 ? if 20 Pit- 0 i? id15?n-Af) tv ctilwx, lio. ogodp me ipozraviL. cti 7 eptrO Z / / ?A- Ltii.4440 4r-40cl ai 411- rsv 11 . Total this. page I 4." 44 • T 344if./• 950 196 • /01 Page 3 of , c (4461.12A5 31. ei Co 251 of 498 We,:the undersigned, ore tesidence and: or wort:in National city, California. We have beenmade aware that Gams Produce and lor a represamative have applied:for a Type 10 (Reep and Wine License) at *ME. 411 Street National. City, CA 91950: We feel. that the addition ofan alcoholic beverage outlet at this location will be detrimental to thp while safety. Health and welfare of otw children and this ootmnurtiti.lam over the age of and too NOT IN SUPPORT of this, limaseapplication /ondiona:1U Permit ADORESS •TELEPHONE war (OPTIONAL) re :art- sztr�Tcj 1 Tc5 efp I 221 11E7 9M-0 tor-2417 -.29'4 Ra-Vidk V5:&040,-Z bc.yliatv, vter5tp utar5,19_ 54.1C akin Ave_ C, ,7i1S0 3q 15-5- g 4/ s— A,i46-- ?irs-o id?) 7.3:6,-2 ccviter ‘ jJpt0-6- redwL_Az ites-n, (60 / 04,1/ •Q SAN v 400 t4C,- aiSOZIT /41 3715_,E2> 10 ig • .17,01,1L44 7: /r4e/YU obr` N C TJ,Nro 0749 -797v- 1,9 Totat this page — Page of 252 of 498 Werti sod f or vont h mating avy, £ mania. have been made wale tit OanntlitOdece and or recresentative have applied for a Type 2,0 (Beerand Wine License) t MI- 4th Stteet, National City, CA 9193O Itie f d that Ole: aeon of an eleototte bevaage oldies at this location mill be sal to the public ofety, Herd& and *Wand nur ghildeen Bud thig eonagialky. l sat over tbe ag6 .eft* arilf T prAlcat•of tis c apPlicati,on ConolitiMi Uge limit,. y NAME Mc 44 e rr,�_ r 1 r- /00 ', DATE #., taily,soik*-341:444 emits --� —xis i '• /., cam;.- `� � }}''~ 2 ' Z5fl .: a54' 0 /} `_'. ,. 41.17-.17)_ .- ,• i -° 5 P' 253 of 498 We, the nadersigned, are resides ravi tor work in. National City, California. We have been made a that Game Produce and / oz a representative htwe app for a Type ' and Wine License) at:.t605 B. 411 Street, National City4CA 91950 eleel that the additional* alcoholic bye: outlet otthis location will be detrimental l to the s Healthwelfare•a i of vtue awl this C, i a n o the a.�e of ill and am NO1' SORT' adds license application / conditional Use pout. Total Psile TELEPHONE DATE rrionAL it q � . ofirmitivrz e / 61 /S s' - *khj- 44. 3z - W 254 of 498 Wes .the Inglosiontecit ae resbienee and / or worIc 1j2 'National City, California, I% have been made aware that Gam Meduce.or a representative have applied for a Type 20 (Demand Wine License) at 1605 II 41h Street, National City, CA 91950. We feel that the addition of an alcoholic homage outletat this loesflor will be pleuhnentd to the /*die safety, Health and welfare of our children and this coranntnitY, 1 am over thane °rig =aim &ur of this HMSO applicatioti cotarnional Use Permit. N AVOIRESS TICLEPlitONE DATE ornor(L) z on ckve. Oc et 01 is Cztek) -L441 - In f2 424142 7-in4Faciatret ft-Qc i15".44* ‘0* citc, %IAA rwt-i* lx ti tkIkkv;"*.-4‘. IrIP> 60,7) eel, --4)$, .4241 v5111 sot.,set- at4k40-, Ikaitekogt CA- qt/Uv C. 649 (Mall, 1. 'Ai 9 $47-7.143 .ie.0- , _, i _ We" fie 40A, of j e te , . ci sx 4 9.e . cfrtr a 4efle,.sle-__TA6 0 / f L f lt, Augqiider...„illi at Nii. _,:.------- 101 fiiN4 ANie MT. 9/qsa. ?"15 .7`471141 -.01.11111111111 • •/ .0, ref it . I /41 / '. AP Oft 1P7NM Mg e'gt if ,11111/11111111'_L _ . 1 > TAINIMINWAir -tir..-I'll ‘ ?' r.5 willerrerli . .d. 4iLit , ChieNt5Z) 615-17?-44-(91 V* PIIIRPWWVIAMS .... ,......,.. .4. ,„,,,,... A t . ^ .. 49.; A.local lori ft 4, , i ;q1.44.6 co ,... * • YzJip w -- Al. C. . '' '• 4 - i ni , im 111 I i IS iik t AfigilirM"Ila diall _ 0 0 , A 141 tv .17ST. AIL 7 . Ir;Ae. SinfdAtra , -' "•,*(9 E ifrit itle- i ' 9 670 6/1— 977-04V, Total this pap- 3 Page of 255 of 498 Wei, the undersized, are residetesidenee and f or wale in National City, California. We have bee mademate that Coma Produce sad f { a. Svc have applied for a Type20 (Beer and Wive License) at i O E. 4th Strom iikaional City, dA 91950. We feel that -the addition of an alcoholic beverage outlet* this 1oeaiion will. be 4ekrimentai to titepublie;salety, Fie f *alike of caw' children and this eotatattn. I atn over the age of 1 Sand:i am NOT)k/41'PORT of this lite= apPlicatiotti Cc tional Use permit. NAB �., TELEPHONE. DATE : ADDRESS • OONALl i , iC MIR- i 1�') r�+yam R yy� I(y/� Ff�yy - f 1 ! R'f tk 4.4... , ,,. c4, /9f 7 '. ImLibrea,- , , 11S _ L' & . 'Ge JAELowoddl vfro f t9 4 ¢. I.--- .0 J21 e fasAtil( ett.E5ftt, ..qi4 , , _.- .LJf 5 6 ) St 1) 017fs3, !.4 t...tk .)111cf `5'0 t r?y 7•g tro-ri.cm 3 e 94th .0 (mg° triq , g lice , If merit• 6 : :, s+ d alT a., js+ , f_ter-}�,� -low L ,, it _As. 11 , t is t r r) 7 io , ,. t7 6. • 7.9 f 24l3 s. Z' - ` i7c-4 9..N) t e-- t, , VA4Cri* tejt.„14.„.._ '65°1 134.34-asac.Cli 1r 1-/ e4 low 600.5m-20156 -4 5-I, Total this page ,90 zotu 256 of 498 . , We, the undersigned, are reSidencetuld / r *ark in National. City, tai World& We have bean Made aware Watt:Wm Prodcce and': or repre,setitative have applied for g Type 2(Meer and Wine License) at 1605 E 4 Street, National City, CA 91950. We feel thatthe additimk Of On alcoholic beverage outlet at this location will he detrimental to the public safety, Health and welfare Of otir children and this eommuxnty 1 am over the ago of iX and 1 arty NOTIN SUPPORT ofthis IicacappicatonJConditional Use Permit. ADDRESS IfinEntoriE DATE (orworia) • • e, C3111- W 1to_9131-77 s- Nkr-Thsit- M•040 eltAviAt.. qtri L.t°itE VS-TAO Oe NC4.4,4.giro C(014.) 00 -07-42, vot4 4424ei • ixt474P7- of,ep.cf, cetip9L-01.2,21: 1 (00 ro ( 7 VI Total this page /3 Page of 257 of 498 • ....,7;.."-77 sa raw, Wet tevit si i, are residence tad tot work it National sty, fFOtI1I L, We have beeamade aware 't a Pro i anti 1 Or a teptesentitive have applied for a Type 20 -Meer an4 Wine License) at 16O5 E. 4th Street, National City, CA 0) 950, We' T drat the addition of n alcoholic beventgeautlet.at this location *ill beclouimentat to public iafety., tioltivweiwilfare+ of nor chi ,at this eoinnutnity,. i am over the age of 1 gand T aza rtnprei. SliPPQ T.O f this license amlicatiatt CoaillOolud°use:PCfltiit Total thispage = 2 Lf L. At & ae s* 2t k 4074 7 Page /0 of 258 of 498 e, the undersigned. . inn residence and/ of work in National .City, Wifornia.. Vie.been made await that lama ProdiVe and .f r * tsti h,applied, for a Type 20 (Beer and Wine Memo) at i60E. 4thStreet, NlatioingCity, CA91950.. *ratio additionaloobalic beverage outlet at this n will be deementel to the public sty, Health and welfare of our children and this conamurdty.1 the age of 18 andiam Nt `,t IT, ,T o i& license application/ ConditiOnUt Use Permit- NAME- ADDRESS 40,4 ,, 4\; �- kilsigg- Total this TELEPHONE DA (O1 N cr/vc,., f 91.9:$2 mi.& AK" "ri:lik•tt PC. CA Ca, • Citil 61) (pig --eo(-519 `Gemet,,sovoier7 4 ^ % _ ,414 Ps Page of 3/Atiens 14. 259 of 498 ImaiiiriaamelMEIONW V" We, the undOsignerd, are-traidence and Jor •work in. NationalawCaliihntia_ We have bear matte oven that Game Pro4uceand / �r a raresemative have applied fora Type 26 (Beer and Wine License) at 1605 e. 4th Sued, National city, CA 91950. We feel tbattbe additin at an. alcoholic beverage outlet at this location -will be detrimenntl to the,publie safety.. Health and welfare of our children and unsearantunityA ant over the age of 18 and fampia/ INIVITORT of this license application/ Conditimal Use Peirnit. ADMEN TELMIONE DATE OFTIONAL Total thiapage 01,e, elgelymve tqj extvi, 4i4Ceolti97,2-444to _stud) tiporitt_LLitte______Attr_LATAL_CAggtgLagli4 772,--CtOittd/40 Page /2 of 260 of 498 We', the undoraigned, are residence' and I or we& NatiortaKity. Califoona, We ism- been Itil040 aware' that Oarqa rvAtt" all° t)14 reP-1121,,t1V13 have vlie a TypeMeer and; Wyme Licenso) at 160 II:0**A No0041 CitN. CA '91 90- We 1":,L.,ibist addition xxcan almholip beverage outtet 4 this lneatipn vitthc a be tleirthOritat to the public safety, Health atitt welfare four utc4i and this enniretulityA lam over the age or iS and 1 am. NOT 111 stiPPORT, of this Homo applicsiorti Condlticonal /trig Permit KAM ADDifess 4,4( 51:)47 'Palm <we „Or., 11470 •ceps sr4 outs It -MC -Po A netorr • . jJ -Total this pi;ge 52 reigs7-4 ITLEfilictistE orn NAL All • gt. irt-t 11,1 v..) -37 •170/ Chise,flu ,sw4 // fa) me 261 of 498 `kite are Tecsidevan midi or work an National City, Cartfmnia. Aft hav been made avvgaillat Oama Prodee4 and I or ,vc apples for a. Type 20 and Wtae Licnse) at 1605 E. 4th t,19n L City, CA. 919 , feel that the this alc�ta?110 rev inention marl bet detrimental Win PA& safeti Health and wolf= of our ice. and ant ova tilt- ago of to and l ara ISOMMagaofthin tamp, applicationt Concikknal.Vac Permit 262 of 498 HANDOUT Item no, May 2, 2016 Public Correspondence received in support of Gama Produce CUP application. • Letter and petition from business owner (144 signatures) • Letter of support from Chamber of Commerce • Letter of Support from California National Guard 263 of 498 N'y GI LAMA PRODUCE 1 `4. 1605 E. 14th St, National City, CA 91950 Dear Planning Commission of National. City, 619-477-2374 I would like to submit letter as a rebuttal to the statement of local store owner Robert Zakar, which was submitted in opposition of a Conditional Use Permit for Garna.Produce. Within the opposition letter submitted to you, it states multiple times in regard to. the CUP, "Current census tract is over saturated." (Ref #1) I would like to state that these CUP's were approved by the Planning Commission and seem to be the focus of his opposition. This leads me along with other statements in the opposition letter to believe this is not an outcry to for safety and security, nor the welfare of the local area, but a direct attempt to keep Ranch House Liquor sales up as allowing a CUP for Gama Produce could possibly be a threat to his sales of beer and wine. In addition the opposition letter states there are multiple schools, churches and other civic locations in the area that would be influenced by the granting of a CUP to Gama Produce. (Ref. #3) Ranch House liquor is directly across the street from Gama Produce and provides a large selection of beer, wine, cigarettes and liquor. For the approximate twenty years Ranch House Liquor has been in business this has not come up as a local concern. Again this provides evidence, the concern is not for the local area but the threat of competitive sales. With any location that serves alcohol or other vices, there is the potential for crime. In the opposition letter it states, "Crime is sure to increase as a result of an additional alcohol license being issued." (Ref #3 subsection 7) Again Ranch House Liquor has sold more alcohol and vices than Gama Produce is proposing to sell. There is no factual evidence supporting a claim that a citizen buying a beer 100 feet away from an already vetted liquor store would suddenly increase the crime rate to a staggering proportion as to directly contribute to the degradation of society. Weather a citizen buys a beer or bottle of wine at Gama Produce or across the street at Ranch House Liquor would not increase the crime rate that is already existing. Within the letter there is multiple statements repeating the points there is an over saturation of liquor stores in the area and it is too close to schools and local civic areas. In addition the letter states the reason for denial should be due to the square footage and prior sales advertisements of Gama Produce. I can firmly state it is not my intention to sell the location as I have hope to pass the business onto my daughters after they graduate college. In addition it is not my intention to create a business around wine and beer but only to supplement the income to the stores sales and provide additional service to my customers. 1605 E 4th St. National City, CA 91950 1 619-477-2374 I GamaProduce@outlook.com 264 of 498 The sales of beer and wine do not do anything but provide a possible loss of sales tb Mr. Zakar at Ranch House Liquor which I.personally feel is the sole reason for the petition to deny the CUP. This directly contradicts the point of a free business society. To deny ones right to earn a living due to the fear of loss of revenue goes against everything small business owners fight for. In addition small business such as Gama Produce thrive on completion and customer loyalty. I have time and again proven I am an upstanding business owner with a morale background, through the choice not to sell tobacco products and good relationships I have with the surrounding area to include the National Guard who comprise a large bulk of my sales each month. For seventeen years I have owned and operated Gama Produce each day arriving on lime and closing after the last customer without incident. I have supplied the local area with outstanding produce and meat as well as daily product needs. In today's economy is paramount for a small business owner to expand and grow allowing for better service to the community and its citizens. I am sorry Mr. Zakar and Ranch House Liquor feel I am attempting to take sales away from them, however that is not my intent in any fashion. It is solely to provide better service to my customers and allow my business togrow and make more revenue through a small wine and beer inventory addition, thereby helping to keep my business afloat. If you have any questions or issues please visit our website at www.GanraProduce.vpweb.corn or contact Susana at GamaProduce@outlook.com Susana Maza. Owner Gama Produce 1605 E 4th St. National City, CA 91950 619-477-2374 I GamaProducegoutlook.com 265 of 498 iul 5118J�CT � kJ- s ` -r' m Li? iii,or tine74,41.:! DATE jrz, L5 it t 2.e.tr a, 1 , cry /449s" e: 4144 Feb 2.4 i O ( _bdcx tv.ct nocoic%. &CA.Vi_o_oca a._..._._V . i. e ..m ci. .. a r c. vim- - Qabokot.1 ()WA ck Lops. / eV Chin_vi65 7] 500 reilece L Pettor 219ZivSc C-4- Syr h b icsOe ('4 1/2 ti L-9a1.1 t �1 11✓i _-._. . 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I, 1,, , • 5five' 9 i , ' SI eat i.ct 6, 65 t 3: .,x, I crir. o �ene2, A .c), 4iith A r4'c ± .� C.O4 - G 0 51 1�� Cr-C(7, ! Z b .' or. Au - 06 ct• 50 Cfq 750 73 ._. .0- 0 267 of 498 , s) SUBJECT DATE' Laseiatitzzli -5.74 a z Qty 4_5<=7 t __.__.. gay. -,.. r 1\1'g:0.01,11-al fl"? _C49. a -... L.aS 4 r a -1- '7-Z--cz=„sg .‘xe,-. -he-44-1. ra,-/i-.),_,, -p i / csa . iatt,..,4 T 268 of 498 -7- T C •, 011.1 11 s') _8 ft. .74e014.- gi I la* ‹,-(.._..D.1eAc) 9 2- J 6 _/)RiziTo ftte 4 Mitt— 7q. 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VIPW6' luivr\A QZ.t) OCV(1 ‘Vop qmpOwavi booc 1- 0.0 upica olim DIP .) '-Logarvi- v\wo-5--Arp-otkm95N, J6 ail VG 1-11.111111.- ZigutiT a.3i2119-,43 ijittcAPW NM 31012\ •ktc4 •ANN ct)q. DIDIA ono kb 0/ 01* 901 National City Boulevard National City, CA 91950-3203 Business: 619 477-9339 Fax: 619 477-5018 Web site: www.nationaicitychamber.org A pri 129, 2016 Susana Maza Gama Produce 1605 East 14th Street National City, CA 91950 To Whom It May Concern: The National City Chamber of Commerce supports Gama Produce's application for a Conditional Use Permit to sell beer and wine at their business location (1605 E. 14th Street, National City, CA 91950) . On behalf of the Board of Directors of the National City Chamber of Commerce, we fully endorse the CUP application to allow Gama Produce to: • Provide expanded product options for her customer base; • Retain her current customer base by meeting their demand for beer and wine sales; • Compete in the local market economy; a Increase sales, thereby generating additional sales tax revenue to the City of National City; and • Take advantage of business development opportunities for Minority Owned Businesses and Women Owned Enterprises to further expand her operations and satisfy her business plan objectives. Gama produce is an active chamber- member in good standing. Furthermore, Ms. Susana Maza, owner of Gama Produce, is an outstanding corporate citizen whom is fully engaged in community and civic affairs. She is supportive of arts, education, and cultural programming as evidenced by her support of the international Mariachi Festival and Competition this past March. Her continuous commitment to youth development through her generous donations to student groups is also noteworthy and reflective of her community character. If granted the CUP for beer and wine sales, Ms. Maza will continue to operate responsibly and take all measures to safeguard against the illegal sale and distribution of alcohol to minors. To date, there 276 of 498 have been zero reported cri 1 ! incidences at her store. She will sell beyond i Opm, and plans on hosting three small container units to house her alcohol products. Moreover, Gama Produce is primarily a fresh fruit, vegetable and meat market, not a liquor store. Thus, the sale of alcohol will only serve to compliment her existing product offerings. However, it is an important component to meet her customer's needs. Also, we would like to clarify that Ms. Maza does not plan to sell her business, as alleged in the letter submitted by Rach House Liquor Store. The National City Chamber of Commerce is recognized as the premier local Chamber of Commerce in the San Diego Region, is highly respected by the community as the unified voice of business, and participates as a major partner in planning the future of our community. The Chamber is an advocate for business friendly legislation at all levels of government, and is an organization with a strong active membership. The Chambers mission is to increase opportunities for businesses and advocate for our membership in matters related to business, government, and community relations. We proudly represent over 500 businesses in the City of National City. Thank you for your time and consideration of our request to support the approval of Gama Produce's CUP application for beer and wine sales. Sincerely, Jacqueline L. Reynoso President/ CEO National City Chamber of Commerce 277 of 498 113 DEPARTMENT OF THE ARMY CALIFORNIA ARMY NATIONAL GUARD RECRUITING AND RETENTION BATTALION 303 PALM AVENUE NATIONAL CITY CALIFORNIA 91950 NGCA-RRB-C MEMORANDUM FOR RECORD SUBJECT: Letter of Appreciation 28 April 2016 1. This letter of appreciation is to recognize the selfless service and dedication of Gama Produce Market owner Susana Gavia Alvardo. Her continuous efforts to support her community and service members is truly noble. 2. Gama Produce provides the local community and Soldier's daily with healthy, fresh produce and great customer service. I am truly impressed with Susana's commitment and excellence to go above and beyond to care for her local customer. I am thankful for her professionalism and kindness to local public. 3, Point of contact for this memorandum is the undersigned and can be reached at 858- 405-5245 or dana.r.darvinvarab.mil@a mail.mil. DANA R. VAR SSG, USA Recruiting and Retention NCO 278 of 498 '; • Over the many years Gallia Produce has Clint arid time alipiirt given outstanding service and friendship to our Soldiers. They consistently choose to go to Lama Produce for the warrn welcome and smile you have iven, the availability of well -priced goods and your personally ensure each of them is taken care of to the highest staadarda..Ixt addition 1 would like to recognize your unwavering support to the ktonNo acutrd, swim, s- tn5 and Marines that have .) . • gt.lortlato N • Dt-if B C. 5781-1(BEB CAANG , 279 of 498 RESOLUTION NO. 2016-11 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA, DENYING A CONDITIONAL USE PERMIT FOR ALCOHOL SALES AT GAMA PRODUCE LOCATED AT 1605 EAST 4TH STREET. CASE FILE NO. 2015-28 CUP APN: 554-050-19 WHEREAS, the Planning Commission of the City of National City considered a Conditional Use Permit for alcohol sales at Game Produce located at 1605 East 4th Street at a duly advertised public hearing held on May 2, 2016, at which time oral and documentary evidence was presented; and, WHEREAS, at said public hearings the Planning Commission considered the staff report contained in Case File No. 2015-28 CUP maintained by the City and incorporated herein by reference along with evidence and testimony at said hearing; and, WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law; and, WHEREAS, the action recited herein is found to be essential for the preservation of public health, safety, and general welfare. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of National City, California, that the testimony and evidence presented to the Planning Commission at the public hearing held on May 2, 2016, support the following findings: 1. Granting the permit would constitute a nuisance or be injurious or detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicinity and zone in which the property is located, because the census tract in which the subject property is located is currently over -concentrated with regard to of sale alcohol outlets — four off -sale outlets are permitted where two are recommended by the California Department of Alcoholic Beverage Control. — and the area has a high crime rate. 2. That the proposed use is not deemed essential and desirable to the public convenience and necessity, because four other off -sale alcohol outlets are located in the same census tract as the subject property. 3. That based on findings 1 and 2 above, public convenience and necessity will not be served by a proposed use of the property for the retail sales of alcoholic beverages pursuant to law. BE IT FURTHER RESOLVED that copies of this Resolution be transmitted forthwith to the applicant and to the City Council. 280 of 498 BE IT FINALLY RESOLVED that this Resolution shall become effective and final on the day following the City Council meeting where the Planning Commission resolution is set for review, unless an appeal in writing is filed with the City Clerk prior to 5:00 p.m. on the day of that City Council meeting. The City Council may, at that meeting, appeal the decision of the Planning Commission and set the matter for public hearing. CERTIFICATION: This certifies that the Resolution was adopted by the Planning Commission at their rneeting of May 16, 2016, by the following vote: AYES: Baca, Garcia, Sendt NAYS: Dela Paz, Flores ABSENT: ABSTAIN: Bush, Yamane HAIRPERSON 281 of 498 111 CC/CDC-HA Agenda 8/16/2016 — Page 282 The following page(s) contain the backup material for Agenda Item: Public Hearing conducted in accordance with California General Code Section 52201 to discuss and consider the findings of a Summary Report pertaining to the sale and conveyance of certain Real Property located in the City of National City with a street ad 282 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 AGENDA ITEM NO. ITEM TITLE: Public Hearing conducted in accordance with California General Code Section 52201 to discuss and consider the findings of a Summary Report pertaining to the sale and conveyance of certain Real Property located in the City of National City with a street address of 1640 E. Plaza Blvd., (APN # 557- 410-20), from the City of National City to Palm Plaza Associates, LLC pursuant to a Real Property Purchase and Sale Agreement and Joint Escrow Instructions. PREPARED BY: Carlos Aguirre, Community Dev, Mgr. DEPARTMENT: APPROVE PHONE: (619) 336-4391 EXPLANATION: See Attachment No. 1 Housing and Economic 'elo n ment Dept. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. Subject to the execution of a Compensation Agreement with the Affected Taxing Entities (ATEs), net proceeds from the sale of the property will be distributed among the ATEs as required by Health and Safety Code Section 34188. The City will receive 18% of net proceeds from the distribution. nance MIS APPROVED: ENVIRONMENTAL REVIEW: Approval of the property transfer is not a "Project" under section 15378 of the California Environmental Quality Act ("CEQA") guidelines because the proposed action consists of administrative activity that will not result in direct or indirect physical changes to the environment and, as such, pursuant to section 15061(b)(5) of the CEQA Guidelines is not subject to CEQA; and, the underlying project is exempt from CEQA for two reasons: 1) it requires only ministerial approval by the City (Public Resources Code section 21080(b)(1) and Guidelines 15268), and 2) it is an urban infill project (Guidelines section 15332). ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Conduct the Public Hearing. BOARD 1 COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Background Report 2. Public Notice 3. Summary Report 4. Purchase and Sale Agreement and Joint Escrow Instructions 9R1 of A.QR Attachment No. 1 Explanation and Background Report Public Hearing The purpose of the public hearing is to allow the City Council and the public the opportunity to review and comment on the essential terms of a proposed Real Property Purchase and Sale Agreement and Escrow Instructions for the sale and conveyance of certain real property ("Property") located in the City of National City, California, with a street address of 1640 E. Plaza Blvd, (APN # 557-410-20), from the City of National City to Palm Plaza Associates, LLC pursuant to a Real Property Purchase and Sale Agreement and Joint Escrow Instructions ("Agreement"). The Agreement is included as Attachment No. 4 of this staff report. Section 52201 Summary Report A Summary Report was prepared in accordance with Section 52201 of the California Government Code in order to inform the City Council and the public about the proposed Real Property Purchase and Sale Agreement and Joint Escrow Instructions between the City of National City ("Seller") and Palm Plaza Associates, LLC ("Buyer"). The report outlines the potential costs of the sale, the estimated value of the interest in the property to be sold, and the economic opportunities resulting from the transaction. The report is included as Attachment No. 3 of this staff report. Property History The Property was once the site of a 70-unit Day's Inn hotel that was built in 1986 and closed approximately 16 years ago leaving a blighted and abandoned building. Under a put -option agreement with the Community Development Commission of the City of National City ("CDC"), National City Hotels acquired the Property in 2004 from Rex Investments for $3,775,000 with the intent to develop commercial space and residential units by gaining the appropriate entitlements with assistance from the CDC. When National City Hotels was unable to obtain the entitlements needed and acquire the adjacent vacant property, they exercised the put -option agreement with the CDC. The Property was purchased by the CDC for $4,394,343 in October 2005. The sales price was based on the value of an operable hotel and as part of the purchase, National City Hotels demolished the building leaving the Property vacant upon purchase. The Property was appraised by the CDC in 2006, after the demolition of the structure on the Property. The appraisal valued the land at $2,135,000. However, later in 2006 the appraisal was revised to reflect a value of $1,823,000 after the appraiser had the opportunity to review preliminary title reports and a parcel map with plotted easements. The CDC entered an Exclusive Negotiating Agreement (ENA) with the Acevedo Group in January 2006. The ENA was assigned to Palm Plaza Associates, LLC (PPA) in June 2006. Since entering the ENA, PPA has owned a 1.144 acre parcel of land contiguous to the Property. A Purchase and Sale Agreement between Palm Plaza Associates, LLC and the CDC was contemplated since November 2009 for a sale amount of $1,823,000 for the purpose on developing 72 for -sale residential units. However, the quick downturn in the economy impacted the value of the Property and feasibility of development. The Property was reappraised in January 2011 and valued at $690,000. In the spring of 284 of 498 Attachment No. 1 2011, PPA and the CDC renegotiated the price and terms for the purchase and sale of the Property reflecting the appraised value of $690,000. However, the CDC and PPA were unable to consummate a Purchase and Sale Agreement due to the impending dissolution of the CDC by the State of California that prohibited entering into property disposition agreements at the time. The Successor Agency to the Community Development Commission as the National City Redevelopment Agency ("Successor Agency") indicated future development of the the Property in the Revised Long Range Property Management Plan (Revised LRPMP) The Revised LRPMP was approved in December 2015 by the State of California Department of Finance. The Property was appraised in February 2016 for a value of $870,000. In accordance with the Revised LRPMP, the Property was transferred to the City for future development in May 2016 from the Successor Agency. Negotiations with PPA continued from where they had left off in 2011 and PPA has agreed to purchase the property at the appraised value of $870,000 for the future development of approximately 72 multi -family housing units. Public Notice Process Notice of the public hearing was published in the San Diego Union Tribune on August 1, 2016 and August 8, 2016, as well as through the regular agenda notification process. The Public Notice is included as Attachment No. 2 of this staff report. 285 of 498 Attachment No. 2 LEGAL NOTICE PUBLIC MEETING ACTIONS RELATING TO THE TRANSFER OF REAL PROPERTY IN THE CITY OF NATIONAL CITY TO PALM PLAZA ASSOCIATES, LLC PURSUANT TO A REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS NOTICE IS HEREBY GIVEN that the CITY OF NATIONAL CITY will hold a public meeting on Tuesday, August 16, 2016, at 6:00 p.m. or soon thereafter, at City of National City, City Hall Council Chambers, located at 1243 National City Boulevard, National City, CA 91950. The public meeting is being conducted in accordance with California General Code Section 52201. The public meeting may be continued from time to time until completed. The public meeting may also be cancelled or set for another time in the future at any time until the scheduled meeting time. The purpose of this public meeting is to discuss and consider the following items: • The sale and conveyance of certain real property located in the City of National City, California, with a street address of 1640 E. Plaza Blvd, (APN # 557-410-20), from the City of National City to Palm Plaza Associates, LLC pursuant to a Real Property Purchase and Sale Agreement and Joint Escrow Instructions. Any and all persons who wish to speak on any issue related to any of the item to be discussed at the public meeting as listed above may appear at the public meeting and will be afforded an opportunity to speak. Further information regarding the item to be discussed at the public meeting as listed above or this public meeting may be obtained by contacting Gregory Rose, at (619) 336-4266. Copies of the Purchase and Sales Agreement and Economic Report are available at the office of the City Clerk (1243 National City Boulevard, National City, CA 91950). 286 of 498 Attachment No. 3 NATIONAL CITY REDEVELOPMENT PROJECT NATIONAL CITY, CALIFORNIA SUMMARY REPORT PERTAINING TO THE PROPOSED SALE OF CERTAIN REAL PROPERTY WITHIN THE NATIONAL CITY REDEVELOPMENT PROJECT AREA California Government Code Section 52201 PURSUANT TO THE PROPOSED REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS between THE CITY OF NATIONAL CITY and PALM PLAZA ASSOCIATES, LLC National City, California August 2016 287 of 498 Attachment No. 3 TABLE OF CONTENTS Page I. Introduction 1 II. Costs of the Agreement to the City 4 III. Estimated Value of the Interest to be Conveyed at the Highest and Best Use Permitted Under the General Plan and Zoning Code 5 IV. Estimated Value of the Interest to be Conveyed at the Use and with the Conditions, Covenants, and Development Costs Required by the Agreement 6 V. Compensation which the Buyer will be Required to Pay 7 VI. Explanation of the Difference, if any, between the Compensation to be Paid to the City by the Proposed Transaction and the Fair Market Value of the Interest to be Conveyed at the Highest and Best Use Consistent with the General Plan and Zoning Code 8 VII. Explanation of why the Sale of the Property will Contribute to Economic Opportunity 9 VIII. Limiting Conditions 10 288 of 498 Attachment No. 3 I. INTRODUCTION A. Purpose of Report This Summary Report was prepared in accordance with Section 52201 of the California Government Code in order to inform the City of National City (Seller) and the public about the proposed Real Property Purchase and Sale Agreement and Joint Escrow Instructions (Agreement) between the Seller and Palm Plaza Associates, LLC (Buyer). This Report and attached tables describe the transaction between the Seller and the Buyer. This Report specifies: 1. The costs to be incurred by the Seller under the Agreement; 2. The estimated value of the interest to be conveyed at the highest and best use permitted under the General Plan and Zoning Code; 3. The estimated value of the interest to be conveyed at the proposed use and with the conditions, covenants, and development costs required by the Agreement; 4. The compensation to be paid to the Seller pursuant to the proposed transaction; 5. An explanation of the difference, if any, between the compensation to be paid to the Seller under the proposed transaction, and the fair market value at the highest and best use consistent with the General Plan and Zoning Code; and 6. An explanation of why the Agreement will assist in the creation of economic opportunity. B. Summary of Findings The Seller engaged its economic consultant, Keyser Marston Associates, Inc. (KMA), to analyze the proposed financial terms. The principal KMA conclusions are summarized as follows: • The estimated costs of the Agreement to the Seller total $4,350,000. • The estimated fair market value of the Property at its highest and best use is $870,000. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 1 289 of 498 Attachment No. 3 • The estimated re -use value of the interest to be conveyed is $870,000. • The value of the compensation to be received by the Seller is $870,000. C. Description of Property and Proposed Development The Property is located within the former National City Redevelopment Project Area (Project Area). Prior to the Statewide dissolution of redevelopment in 2012, the former Project Area encompassed approximately 2,000 acres of land area. The goals of the Redevelopment Plan (Plan) were to retain businesses and jobs in the area, create and improve public facilities in the area, and improve the supply of affordable, quality housing. Since the adoption of the Plan, numerous redevelopment ventures were carried out by the City's former redevelopment agency in partnership with private developer and non-profit partners. The Property is a 1.07-acre parcel located at 1640 East Plaza Boulevard in National City. It was originally acquired by the Community Development Commission for redevelopment purposes. Following the dissolution of redevelopment, the Property was transferred to the Successor Agency to the Community Development Commission as the National City Redevelopment Agency pursuant to Health and Safety Code Section 34172. Following State approval of the City's Long Range Property Management Plan (LRPMP), the Property was transferred from the Successor Agency to the City. The Property is situated on the south side of Plaza Boulevard, east of Palm Avenue, and west of Interstate 805. The Property has an approximate 25-foot slope within the southwest corner of the parcel. The Buyer intends to combine the Property with a 1.14-acre Buyer -owned parcel at 1300 Palm Avenue, for a total combined development site of 2.21 acres. The Buyer plans to develop a 72-unit multi -family residential condominium development (Project) on the combined parcels. D. Proposed Transaction Terms This section summarizes the salient aspects of the proposed Agreement between the Seller and the Buyer. • The Seller will convey the Property to the Buyer for $870,000. • The Buyer will accept the Property in an "as is" condition. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 2 290 of 498 Attachment No. 3 • The Buyer will construct 72 multi -family residential condominiums on the 2.21-acre site comprised of the Property and the Buyer's adjoining parcel. The Buyer will be responsible for the development, construction, and installation of all landscaping, parking, and all other required on- and off -site private and public improvements associated with the Project. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 3 291 of 498 Attachment No. 3 II. COSTS OF THE AGREEMENT TO THE SELLER The estimated costs of the Agreement to the Seller total $4,350,000, and include the following items: Seller Costs Amount Property Acquisition $3,775,000 Third Party and Other Costs (1) $575,000 Total Seller Costs $4,350,000 The Property acquisition cost, and other maintenance and holding costs, were incurred by the Community Development Commission in its capacity as the City's former Redevelopment Agency. (1) Per Seller, includes maintenance/holding costs, appraisals, escrow costs, fees paid to the previous property owner, franchise fees, inspection reports, other third party soft costs, and estimated budget for legal and economic consultants. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 4 292 of 498 Attachment No. 3 III. ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED AT THE HIGHEST AND BEST USE PERMITTED UNDER THE GENERAL PLAN AND ZONING CODE This section presents an analysis of the fair market value of the Property at its highest and best use. In appraisal terminology, the highest and best use is that use of the Property that generates the highest property value and is physically possible, financially feasible, and legally permitted. Therefore, value at highest and best use is based solely on the value created and not on whether or not that use carries out the revitalization goals and policies for the City of National City. According to the City's General Plan and Zoning Code, the Property is located within the Major Mixed -Use District (MXD-2). This zone allows for a Floor Area Ratio (FAR) of 3.5 for mixed -uses and 3.0 for single -uses. Residential density up to 75 units per acre is also allowed. The Seller contracted with Hilco Real Estate Appraisal, LLC (Hilco) for an appraisal of the Property. The appraisal estimated the current market value of the subject Property as of January 25, 2016. Hilco concluded the fee simple market value of the Property, as vacant, to be $870,000. This land value translates to $19 per SF of site area. KMA conducted an independent review of residential land sales of multi -family residential development sites in National City and surrounding communities from January 2014 to the present. As shown in Table 1, surveyed land sales ranged from $9 to $60 per SF of land, with median and average prices of $20 and $25 per SF, respectively. Most sales were concentrated between $14 and $27 per SF. The comparable sales vary by city, site condition, status of entitlements, and prevailing market conditions at time of sale. Notably, the Property is centrally located within the South Bay, on a major commercial artery (Plaza Boulevard), in close proximity to Interstate 805. On the other hand, the steep sloped southwestern portion of the parcel reduces the useability of the Property. In view of these factors, KMA finds that the value of the Property falls slightly below the median/average prices for the surveyed comparable land sales, or say $19 per SF. In sum, KMA concurs with the appraised value for the Property at $19 per SF of site area. On this basis, then, the KMA analysis concludes that the fair market value of the Property at its highest and best use is $870,000. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 5 293 of 498 Attachment No. 3 IV. ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED AT THE USE AND WITH THE CONDITIONS, COVENANTS, AND DEVELOPMENT COSTS REQUIRED BY THE AGREEMENT This section explains the principal conditions and covenants which the Buyer of the Property must meet in order to comply with the Agreement. Re -use value is defined as the highest price in terms of cash or its equivalent which a property or development right is expected to bring for a specified use in a competitive open market, subject to the covenants, conditions, and restrictions imposed by the Agreement. Since there are no extraordinary covenants, conditions, or restrictions stipulated in the Agreement, KMA concludes that the fair re -use of the Property is equal to its fair market value at highest and best use, or $870,000. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 6 294 of 498 Attachment No. 3 V. COMPENSATION WHICH THE BUYER WILL BE REQUIRED TO PAY The value of the compensation to be received by the Seller for the Property under the terms of the Agreement is $870,000. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 7 295 of 498 Attachment No. 3 VI. EXPLANATION OF THE DIFFERENCE, IF ANY, BETWEEN THE COMPENSATION TO BE PAID TO THE SELLER BY THE PROPOSED TRANSACTION AND THE FAIR MARKET VALUE OF THE INTEREST TO BE CONVEYED AT THE HIGHEST AND BEST USE CONSISTENT WITH THE GENERAL PLAN AND ZONING CODE The fair market value of the interest to be conveyed at its highest and best use is $870,000. The value of the compensation to be received by the Seller is $870,000. The compensation to be paid to the Seller is equal to the fair market value of the interest to be conveyed at its highest and best use. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 8 296 of 498 Attachment No. 3 VII. EXPLANATION OF WHY THE SALE OF THE PROPERTY WILL CONTRIBUTE TO ECONOMIC OPPORTUNITY Implementation of the proposed Agreement will contribute to economic opportunity in the immediate vicinity and the City as a whole. Specifically, development of the Project is anticipated to: • Utilize a long -vacant property • Generate both construction and ongoing employment • Increase building fees, property taxes, and other revenues to the City • Catalyze further development in the vicinity of the Project Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 9 297 of 498 Attachment No. 3 VIII. LIMITING CONDITIONS The estimates of re -use and fair market value at the highest and best use contained in this Summary Report assume compliance with the following assumptions: 1. There are no known soil or subsoil problems, including toxic or hazardous conditions on the Property that need to be remediated in order to develop the Property. 2. The ultimate development will not vary significantly from that assumed in this Summary Report. 3. The title of the property is good and marketable; no title search has been made, nor have we attempted to determine the ownership of the property. The value estimates are given without regard to any questions of title, boundaries, encumbrances, liens or encroachments. It is assumed that all assessments, if any are paid. 4. The Property will be in conformance with the applicable zoning and building ordinances. 5. Information provided by such local sources as governmental agencies, financial institutions, realtors, buyers, sellers, and others was considered in light of its source, and checked by secondary means. 6. If an unforeseen change occurs in the economy, the conclusions herein may no longer be valid. 7. The development will adhere to the schedule of performance described in the Agreement. 8. Both parties are well informed and well advised and each is acting prudently in what he/she considers his/her own best interest. attachment Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 10 298 of 498 Attachment No. 3 TABLE 1 MULTI -FAMILY RESIDENTIAL LAND SALES COMPARABLES, JANUARY 2014 TO PRESENT (1) PALM PLAZA CITY OF NATIONAL CITY # of Density Sale Date Address City Sale Price Acres $/SF Units (DU/AC) $/Unit 08/13/15 1105 National City Boulevard National City $3,500,000 1.33 $60 166 125 $21,084 06/06/14 222 Church Avenue Chula Vista $450,000 0.24 $43 15 63 $30,000 05/09/14 172 4th Avenue Chula Vista $200,000 0.17 $27 4 (2) 26 $45,915 05/31/16 701 D St Chula Vista $4,700,000 4.35 $25 72 (2) 17 $65,278 03/12/14 1455 Sheryl Lane National City $1,750,000 1.89 $21 70 (2) 37 $25,000 10/02/15 2501 E 18th Street National City $270,000 0.34 $18 14 (2) 41 $19,286 02/03/16 Santa Carolina Rd Chula Vista $4,000,000 5.18 $18 96 19 $41,667 09/15/15 2604 Ridgeway Dr National City $1,350,000 2.23 $14 53 24 $25,472 04/02/15 35th St @ J Street San Diego $450,000 0.92 $11 18 20 $25,000 04/10/14 Smythe Avenue San Diego $465,000 1.25 $9 50 40 $9,300 Minimum $200,000 0.17 $9 4 17 $9,300 Maximum $4,700,000 5.18 $60 166 125 $65,278 Median $907,500 1.29 $20 52 31 $25,236 Average $1,713,500 1.79 $25 56 41 $30,800 (1) Selected sales transactions for residential land in the South Bay area. (2) KMA estimate based on Internet research and maximum allowable density as stated in each city's municipal code. 299 of 498 Attachment No. 4 REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS 1640 East Plaza Blvd., National City, CA (APN # 557-410-20) This REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS ("Agreement") is dated as of , 2016, and is entered into by and between the CITY OF NATIONAL CITY, a California municipal corporation ("City" or "Seller"), and PALM PLAZA ASSOCIATES, LLC, a California limited liability company ("Buyer"). Seller and Buyer enter into this Agreement with reference to the following recitals of fact (each, a "Recital"): RECITALS A. The Community Development Commission as the National City Redevelopment Agency ("Redevelopment Agency") owned that certain real property generally located at 1640 East Plaza Blvd. (Assessor's Parcel No. 557-410-20) within the City of National City, County of San Diego, State of California, as specifically described in Section 1 of this Agreement as the "Property"; and B. Pursuant to California Health and Safety Code Section 34172, the Redevelopment Agency was dissolved by operation of law as of February 1, 2012, and pursuant to California Health and Safety Code Section 34173, Successor Agency to the Community Development Commission as the National City Redevelopment Agency ("Successor Agency") became the successor agency and successor -in -interest to the Redevelopment Agency, confirmed by Resolution No. 2012-15 adopted on January 10, 2012, by the City Council of the City; an.d C. In accordance with California Health and Safety Code Section 34191.5, the Property was listed on Successor Agency's Long Range Property Management Plan ("LRPMP"), which provides that the Property will be transferred to and retained by the City for fixture development, and the LRPMP has been approved by the Oversight Board of the Successor Agency to the Community Development Commission as the National City Redevelopment Agency ("Oversight Board") and the California Department of Finance; and D. At its regular meeting on May 17, 2016, the City of National City met and pursuant to Resolution No. 2016-70 accepted the transfer of the Property, among other properties, from the Successor Agency to the City in accordance with the LRPMP; and E. At its regular meeting on May 17, 2016, the Successor Agency met and pursuant to Resolution No. 2016-77 approved the transfer of the Property, among other properties, from the Successor Agency to the City in accordance with the LRPMP; and Palm Plaza Purchase & Sale Agreement v2 Page 1 of 30 300 of 498 Attachment No. 4 F: At its regular meeting on May 18, 2016, the Oversight Board met and pursuant to Resolution No. 2016-04 approved and directed the transfer of the Property, among other properties, from the Successor Agency to the City in accordance with the LRPMP; and G. The Successor Agency has transferred (or will transfer prior to or concurrently with the Close of Escrow) the Property to the City; and H. Buyer has made an offer to purchase the Property from Seller at the Property's current fair market value, and Seller desires to sell the Property to Buyer pursuant to the terms and conditions of this Agreement. AGREEMENT NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES AND COVENANTS OF SELLER AND BUYER SET FORTH IN THIS AGREEMENT AND OTHER GOOD AND VALUABLE CONSIDERATION, SELLER AND BUYER AGREE, AS FOLLOWS: TERMS AND CONDITIONS 1. DEFINMONS 1.1 Definitions. The following words, terms and phrases are used in this Agreement with the following meanings, unless the particular context or usage of a word, term or phrase requires another interpretation: 1.1.1 Affiliate. (1) any Person directly or indirectly controlling, controlled by or under common control with another Person; (2) any Person owning or controlling ten percent (10%) or more of the outstanding voting securities of such other Person; or (3) if that other Person is an officer, director, member or partner, any company for which such Person acts in any such capacity. The term "control" as used in the immediately preceding sentence, means the power to direct the management or the power to control election of the board of directors. It shall be a presumption that control with respect to a corporation or limited liability company is the right to exercise or control, directly or indirectly, more than fifty percent (50%) of the voting rights attributable to the controlled corporation or limited liability company, and, with respect to any individual, partnership, trust, other entity or association, control is the possession, indirectly or directly, of the power to direct or cause the direction of the management or policies of the controlled entity. It shall also be a presumption that the manager of a limited liability company controls such limited liability company. 1.1.2 Agreement. This Real Property Purchase and Sale Agreement and Joint Escrow Instructions by and between Seller and Buyer, including all of the attached Exhibits. 1.1.3 Approval. Any approval, consent, certificate, ruling, authorization, or amendment to any of the foregoing, as shall be necessary or appropriate under any Law to complete the purchase and sale of the Property. Palm Plaza Purchase & Sale Agreement v2 Page 2 of 30 301 of 498 Attachment No. 4 1.1.4 Bankruptcy Law. Title 11 of the United State Code or any other or successor State or Federal statute relating to assignment for the benefit ofcreditors, reditors, appointment of a receiver or trustee, bankruptcy, composition, insolvency, moratorium, reorganization, or similar matters. 1.1.5 Bankruptcy Proceeding. Any proceeding, whether voluntary or involuntary, under any Bankruptcy Law. 1.1.6 Business Day. Any weekday on which the Seller is open to conduct regular governmental functions. 1.1.7 Buyer. Palm Plaza Associates, LLC, a California limited liability company, and any permitted assignee of or successor to the rights, powers, or responsibilities of Buyer under this Agreement. 1.1.8 Buyer Title Policy. A standard CLTA owners' policy of title insurance issued by the Title Company, with coverage in the amount of the Purchase Price, showing title to the Property vested in Buyer, subject to Permitted Exceptions. 1.1.9 CEQA. The California Environmental Quality Act, Public Resources Code Section 21000, et seq. and implementing regulations contained in Title 14, Chapter 3, Section 15000, et seq. of the California Code ofRegulations. 1.1.10 CEQA Documents. Any exemption determination, any Negative Declaration (mitigated or otherwise) or any Environmental Impact Report (including any addendum or amendment to, or subsequent or supplemental Environmental Impact Report) required or permitted by any Government, pursuant to CEQA, to issue any discretionary Approval required to approve this Agreement. 1.1.11 City or Seller. The City of National City, a California municipal corporation, and any permitted assignee of or successor to the rights, powers, or responsibilities of Seller under this Agreement. in function. 1.1.12 City Manager. The City Manager of Seller or his or her designee or successor 1.1.13 Claim. Any claim, loss, cost, damage, expense, liability, lien, action, cause of action (whether in tort, contract, under statute, at law, in equity or otherwise), charge, award, assessment, fine or penalty of any kind (including consultant and expert fees and expenses and investigation costs of whatever kind or nature and, if an Indemnitor improperly fails to provide a defense for an Indemnitee, then Legal Costs of the Indemnitee) and any judgment. 1.1.14 Close of Escrow. The first date on which the Escrow Agent has filed the Grant Deed with the County for recording in the official records of the County. 1.1.15 Control. Possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether by ownership or Equity Palm Plaza Purchase & Sale Agreement V2 Page 3 of 30 302 of 498 Attachment No. 4 Interests, by contract or otherwise. 1.1.16 County. The County of San Diego, California. 1.1.17 Default. An Escrow Default, a Monetary Default, or a Non -Monetary 1.1.18 Default Interest. Interest at an annual rate equal to the lesser of (a) eight percent (8%) per annum; or (b) the Usury Limit. 1.1.19 Deposit. Twenty Thousand and No/100 Dollars ($20,000). Default. 1.1.20 Due Diligence Materials. All of the following: (a) the Preliminary Report; (b) any and all environmental reports relating to the Property in the possession of Seller; and (iii) copies of any and all material documents that pertain to the physical condition of the Property in the possession of Seller. 1.1.21 Due Diligence Period. The period of time commencing upon the Effective Date and expiring ninety (90) days thereafter. 1.1.22 Effective Date. Defined in Section 2 of this Agreement. 1.1.23 Environmental Claim. Any and all claims, demands, damages, losses, liabilities, obligations, penalties, fines, actions, causes of action, judgments, suits, proceedings, costs, disbursements or expenses, including Legal Costs and fees and costs of environmental consultants and other experts, and all foreseeable and unforeseeable damages or costs of any kind or of any nature whatsoever, directly or indirectly, relating to or arising from any actual or alleged violation of any Environmental Law or Hazardous Substance Discharge. 1.1.22 Environmental Laws. All Federal, StttP, local (including City) laws, rules, orders, regulations, statutes, ordinances, codes, decrees, or requirements of any Government authority, now in effect or enacted after the Effective Date of this Agreement, regulating, relating to, or imposing liability or standards of conduct concerning any Hazardous Substance, the regulation or protection of the environment, including ambient air, soil, soil vapor, groundwater, surface water, or land use or pertaining to occupational health or industrial hygiene or occupational or environmental conditions on, under or about the Property, as now or may at any later time be in effect, including the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA") [42 U.S.C. § 9601 etseq.]; the Resource Conservation and Recovery Act of 1976 ("RCRA") [42 U.S.C. § 6901 et seq.]; the Clean Water Act, also known as the Federal Water Pollution Control Act ("FWPCA") [33 U.S.C. § 1251 et seq.]; the Toxic Substances Control Act ("TSCA") [15 U.S.C. § 2601 et seq.]; the Hazardous Materials Transportation Act ("I1MTA") [49 U.S.C. § 1801 et seq.]; the Insecticide, Fungicide, Rodenticide Act [7 U.S.C. § 6901 et seq.]; the Clean Air Act [42 U. S.C. § 7401 et seq.]; the Safe Drinking Water Act [42 U.S.C. § 300f et seq.]; the Solid Waste Disposal Act [42 U.S.C. § 6901 et seq.]; the Surface Mining Control and Reclamation Act [30 U.S.C. § 101 et seq.]; the Emergency Planning and Community Right to Know Act [42 U.S.C. § 11001 et seq.]; the Occupational Safety and Health Act [29 U.S.C. §§ 655 and 657]; the California Underground Storage of Hazardous Substances Act [California Health and Safety Code § 25300 et seq.]; the California Safe Drinking Water and Toxic Enforcement Act [California Health and Safety Code Palm Plaza Purchase & Sale Agreement v2 Page 4 of 30 303 of 498 Attachment No. 4 § 242495 et seq.]; or the Porter -Cologne Water Quality Act [California Water Code § 13000 et seq.]; together with any regulations promulgated under the authorities referenced in this Section. 1.1.23 Equity Interest. All or any part of any direct equity or ownership interest(s) (whether stock, partnership interest, beneficial interest in a trust, membership interest in a limited liability company, or other interest of an ownership or equity nature) in any entity, at any tier of ownership, that directly owns or holds any ownership or equity interest in a Person. 1.124 Escrow. An escrow, as defined in California Civil Code Section 1057 and California Financial Code Section 17003(a), that is conducted by the Escrow Agent with respect to the sale of the Property from Seller to Buyer pursuant to this Agreement. 1.1.25 Escrow Agent. Carla Burchard, Stewart Title of California, Inc., or such other Person mutually agreed upon in writing by both Seller and Buyer. 1.1.26 Escrow Closing Date. Subject to the immediately following paragraph and subject to satisfaction (or waiver by the benefitted Party or Parties) of all of the conditions to closing set forth in Sections 4.4 and 4.5, unless extended by the Parties as set forth in Section 4.9 below, the Escrow Closing Date shall occur on or before one hundred eighty (180) days following the Effective Date. In the event the condition set forth in Section 4.5.1 below has not been satisfied in time for the Close of Escrow to occur on or before one hundred eighty (180) days following the Effective Date, the outside Escrow Closing Date provided for in the preceding paragraph shall be extended from one hundred eighty (180) days following the Effective Date to the date that is two (2) weeks after the Parties receive notice that the condition set forth in Section 4.5.1 has been satisfied or June 30, 2017, whichever date is earlier. There shall be no extension permitted of the June 30, 2017 outside Escrow Closing Date. 1.1.27 Escrow Closing Statement. A statement prepared by the Escrow Agent indicating, among other things, the Escrow Agent's estimate of all funds to be deposited or received by Seller or Buyer, respectively, and all charges to be paid by Seller or Buyer, respectively, through the Escrow. 1.1.28 Escrow Default. The unexcused failure of a Party to submit any document or funds to the Escrow Agent as reasonably necessary to close the Escrow, pursuant to the terms and conditions of this Agreement. 1.1.29 Escrow Opening Date. The first date on which a copy of this Agreement, signed by both Seller and Buyer, is deposited with the Escrow Agent, as provided in Section 3.1 of this Agreement. 1.1.30 Event of Default. The occurrence of any one or more of the following: (a) Monetary Default. A Monetary Default that continues for fifteen (15) calendar days after Notice to the Party in Default, specifying in reasonable detail the amount of money not paid and the nature and calculation of each such amount or the bond, surety, or Palm Plaza Purchase & Sale Agreement v2 Page 5 of 30 304 of 498 Attachment No. 4 insurance not provided; (b) Escrow Closing Default. An Escrow Default that continues for seven (7) calendar days after Notice to the Party in Default, specifying in reasonable detail the document or funds not submitted to the Escrow Agent; (c) Band. ptcy or Insolvency. Buyer admits in writing that Buyer is unable to pay Buyer's debts as they become due or Buyer becomes subject to any Bankruptcy Proceeding, or a custodian or trustee is appointed to take possession of or an attachment, execution or other judicial seizure is made with respect to, substantially all of Buyer's assets or Buyer's interest in this Agreement or the Property; (d) Transfer. The occurrence of a Transfer, whether voluntarily of involuntarily or by operation of Law, in violation of the terms or conditions or this Agreement; (e) Non -Monetary Default. Any Non -Monetary Default, other than those specifically addressed in Subsections (c) or (d) above, that is not cured within fifteen (15) calendar days after Notice to the Party in Default describing the Non -Monetary Default in reasonable detail. In the case of such a Non -Monetary Default that cannot with reasonable diligence be cured within fifteen (15) calendar days after the effective date of such Notice, an Event of Default shall occur, if the Party in Default does not do all of the following: (a) within fifteen (15) calendar days after Notice of such Non -Monetary Default, advise the other Party of the intention of the Party in Default to take all reasonable steps to cure such Non -Monetary Default; (b) duly commence such cure within such fifteen (15) calendar day period; and (c) diligently prosecute such cure to completion within a reasonable time under the circumstances. 1.1.31 Federal. The federal government of the United States of America. 1.1.32 FIRPTA Affidavit. A certification that Seller is not a "foreign person" within the meaning of such teen under Section 1445 of the United States Internal Revenue Code. 1.1.33 Form 593. A California Franchise Tax Board Form 593-C. 1.1.34 Government. Any and all courts, boards, agencies, commissions, offices, or authorities of any nature whatsoever of any governmental unit (Federal, State, County, district, municipal, City or otherwise) whether now or later in existence. It is acknowledged that Seller is a form of Government. 1.1.36 Grant Deed. A grant deed conveying Seller's interest in the Property from Seller to Buyer, at the Close of Escrow, substantially in the form of Exhibit "B" attached to this Agreement and incorporated herein by this reference. 1.1.37 Hazardous Substance. Any flammable substance, explosive, radioactive material, asbestos, asbestos -containing material, polychlorinated biphenyl, chemical known to cause cancer or reproductive toxicity, pollutant, contaminant, hazardous waste, medical wastes, toxic substance or related material, petroleum, petroleum product and any Palm Plaza Purchase & Sale Agreement v2 Page 6 of 30 305 of 498 Attachment No. 4 "hazardous" or "toxic" material, substance or waste that is defined by those or similar terms or is regulated as such under any Law, including any material, substance or waste that is: (a) defined as a "hazardous substance" under Section 311 of the Water Pollution Control Act (33 U.S.C. § 1317), as amended; (b) designated as "hazardous substances" pursuant to 33 U.S.C. § 1321; (c) defined as a "hazardous waste" under Section 1004 of the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901 et seq., as amended; (d) defined as a "hazardous substance" or "hazardous waste" under Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Reauthorization Act of 1986, 42 U.S.C. § 9601 et seq., or any so-called "superfund" or "superlien" law, (e) defined as a "pollutant" or "contaminant" under 42 U.S.C. § 9601(33); (f) defined as "hazardous waste" under 40 C.F.R. Part 260; (g) defined as a "hazardous chemical" under 29 C.F.R. Part 1910; (h) any matter within the definition of "hazardous substance" set forth in 15 U.S.C. § 1262; (i) any matter, waste or substance regulated under the Toxic Substances Control Act ("TSCA") [15 U.S.C. Sections 2601 et seq.]; (j) any matter, waste or substance regulated under the Hazardous Materials Transportation Act, 49 U.S.C. Sections 1801 et seq.; (k) those substances listed in the United States Department of Transportation (DOT) Table [49 C.F.R. 172.101]; (1) any matter, waste or substances designated by the EPA, or any successor authority, as a hazardous substance [40 C.F.R. Part 302]; (m) defined as "hazardous waste" in Section 25117 of the California Health and Safety Code; (n) defined as a "hazardous substance" in Section 25316 of the California Health and Safety Code; (o) subject to any other Law regulating, relating to or imposing obligations, liability or standards of conduct concerning protection of human health, plant life, animal life, natural resources, property or the enjoyment of life or property free from the presence in the environment of any solid, liquid, gas, odor or any form of energy from whatever source; or (p) that is or becomes regulated or classified as hazardous or toxic under Law or in the regulations adopted pursuant to Law. 1.1.38 Hazardous Substance Discharge. Any deposit, discharge, generation, release or spill of a Hazardous Substance that occurs at, on, under, into or from the Property, or during transportation of any Hazardous Substance to or from the Property, or that arises at any time from any construction, installation, use or operation or other activities conducted at, on, under or from the Premises, whether or not caused by a Party. 1.1.39 Indemnify. Where this Agreement states that any Indemnitor shall "indemnify" any Indemnitee from, against, or for a particular Claim, that the Indemnitor shall indemnify the Indemnitee and protect, defend and hold the Indemnitee harmless from and against such Claim (alleged or otherwise). "Indemnified" shall have the correlative meaning. 1.1.40 Indemnitee. Any Person entitled to be Indemnified under the terms of this Agreement. 1.1.41 Indemnitor. A Party that agrees to Indemnify any other Person under the terms of this Agreement. 1.1.42 Law. Every law, ordinance, requirement, order, proclamation, directive, rule or regulation of any Government applicable to the Property, in any way, including relating to any development, construction, use, maintenance, taxation, operation, occupancy of or environmental conditions affecting the Property or otherwise relating to this Agreement or any Palm Plaza Purchase & Sale Agreement v2 Page 7 of 30 306 of 498 Attachment No. 4 Party's rights, obligations or remedies under this Agreement, or any Transfer of any of the foregoing, whether in force on the Effective Date or passed, enacted, modified, amended or imposed at some later time, subject in all cases, however, to any applicable waiver, variance or exemption. 1.1.43 Legal Costs. In reference to any Person, all reasonable costs and expenses such Person incurs in any legal proceeding or other matter for which such Person is entitled to be reimbursed for its Legal Costs, including reasonable attorneys' fees, court costs and expenses and consultant and expert witness fees and expenses. of such holder. 1.1.44 Lender. The holder of any Security Instrument and the successors and assigns 1.1.45 Monetary Default. Any failure by either Party to pay or deposit, when and as this Agreement requires, any amount of money, bond, surety or evidence of any insurance coverage required to be provided under this Agreement, whether to or with a Party or a Third Person. 1.1.46 Non -Monetary Default. The occurrence of any of the following, except to the extent constituting a Monetary Default or an Escrow Default: (a) any failure of a Party to perform any of such Party's obligations under this Agreement; (b) any failure of a Party to comply with any material restriction or prohibition in this Agreement; or (c) any other event or circumstance that, with passage of time or giving of Notice, or both, would constitute a breach of this Agreement by a Party. 1.1.47 Notice. Any consent, demand, designation, election, notice, or request relating to this Agreement, including any Notice of Default. All Notices must be in writing. 1.1.48 Notice of Default. Any Notice claiming or giving Notice of a Default. 1.1.49 Notify. To give allotice. 1.1.50 Parties. Collectively, Seller and Buyer. 1.1.51 Party. Individually, either Seller or Buyer, as applicable. 1.1.52 Permitted Exception. All of the following: (a) the printed exceptions and exclusions in the Buyer Title Policy; (b) all items shown in the Preliminary Report as exceptions to coverage under the proposed Buyer Title Policy approved by Buyer, or deemed approved by Buyer, as provided in 3.3.3 below; (c) any lien for non -delinquent property taxes or assessments; (d) any Laws applicable to the Property; (d) this Agreement; (e) any existing improvements on the Property; (f) any Approval; (g) any other document or encumbrance expressly required or allowed to be recorded against the Property pursuant to the terms of this Agreement; and (h) all covenants, conditions, restrictions, reservations, rights, rights of way, easements, encumbrances, liens and other matters of record or that would be disclosed by an accurate inspection or survey of the Property. Palm Plaza Purchase & Sale Agreement v2 Page 8 of 30 307 of 498 Attachment No. 4 1.1.55 Person. Any association, corporation, governmental entity or agency, individual, joint venture, joint-stock company, limited liability company, partnership, trust, unincorporated organization or other entity of any kind. 1.1.56 Preliminary Report. A preliminary report issued by the Title Company in contemplation of the issuance of the Buyer Title Policy, accompanied by the best available copies of all documents listed in the preliminary report as exceptions to coverage under the proposed Buyer Title Policy. 1.1.57 Project. A seventy-two (72) unit multifamily residential condominium project to be developed and constructed on the Property which shall include the development, construction and installation ofall landscaping, parking, and all other required on- and off -site private and public improvements associated with the Project. 1.1.58 Property. That certain real property specifically described in Exhibit "A" attached to this Agreement and incorporated herein by this reference. 1.1.59 Purchase Price. Eight Hundred Seventy Thousand and No/100 Dollars ($870,000), which is the fair market value of the Property as of February 29, 2016, pursuant to that certain appraisal report conducted by Kent Carpenter of Hilco Valuation Services. 1.1.60 Real Estate Taxes. All general and special real estate taxes (including taxes on fixtures and equipment, sales taxes, use taxes and the like), supplemental taxes, possessory interest taxes, special taxes imposed pursuant to a special taxing district, assessments, municipal water and sewer rents, rates and charges, excises, levies, license and permit fees, fines, penalties and other governmental charges and any interest or costs with respect thereto, general and special, ordinary and extraordinary, foreseen and unforeseen, of any kind or nature whatsoever regarding the Property that may be assessed, levied, imposed upon, or become due and payable out of or in respect of, or charged with respect to or become a lien on, the Property. 1.1.61 Seller Parties. Collectively, the Seller, the Seller's governing body, and the Seller's elected officials, employees, agents and attorneys. 1.1.62 State. The State of California. 1.1.63 Third Person. Any Person that is not a Party, an Affiliate of a Party or an elected official, officer, director, manager, shareholder, member, principal, partner, employee or agent of a Party. 1.1.64 Title Company. Stewart Title of California, Inc., or such other Person mutually agreed upon in writing by both Seller and Buyer. 1.1.65 Transfer. Regarding any property, right or obligation, any of the following, whether by operation of Law or otherwise, whether voluntary or involuntary, and whether direct or indirect (a) any assignment, conveyance, grant, hypothecation, mortgage, pledge, sale, or other transfer, whether direct or indirect, of all or any part of such property, right or obligation, or of any legal, beneficial, or equitable Palm PIaza Purchase & Sale Agreement v2 Page 9 of 30 308 of 498 Attachment No. 4 interest or Mate in such property, right or obligation or any part of it (including the grant of any easement, lien, or other encumbrance); (b) any conversion, exchange, issuance, modification, reallocation, sale, or other transfer of any Equity Interest(s) in the owner of such property, right or obligation by the holders of such Equity lnterest(s); or (c) any transaction that is in substance equivalent to any of the foregoing. A transaction affecting Equity Interests, as refereed to in clauses (b) or (c) above of this Section, shall be deemed a Transfer by Buyer, even though Buyer is not technically the transferor. A "Transfer" shall not, however, include any of the following (provided that the other Party has received Notice of such occurrence) relating to the Property or any Equity Interest: (i) a mere change in the form of ownership with no material change in beneficial ownership and constitutes a tax -flee transaction under Federal income tax law and the State real estate transfer tax law, (ii) a conveyance only to member(s) of the immediate family(ies) of the transferor(s) or trusts for their benefit; or (iii) a conveyance only to a Person that, as of the Effective Date, holds an Equity Interest in the entity whose Equity Interest is being transferred. 1.1.66 Unavoidable Delay. A delay in either Party performing any obligation under this Agreement arising from or on account of any cause whatsoever beyond the Party's reasonable control, including strikes, labor troubles or other union activities, casualty, war, acts of terrorism, riots, litigation, governmental action or inaction, regional natural disasters or inability to obtain required materials. Unavoidable Delay shall not include delay caused by a Party's financial condition or insolvency. 1.1.67 Usury Limit. The highest rate of interest, if any, that Law allows under the circumstances. 2. EFFECTIVE DATE This Agreement shall become effective on the date on which both ofthe following have occurred ("Effective Date"): (a) Seller has received three (3) counterpart originals of this Agreement signed by the authorized representative(s) of Buyer; and (b) this Agreement has been approved by Seller's governing body and executed by Seller's City Manager. 3. PURCHASE AND SALE OF PREMISES 3.1 Escrow. Seller shall sell and convey fee title to the Property to Buyer and Buyer shall purchase and acquire fee title to the Property from Seller, subject to the Permitted Exceptions and the terms and conditions of this Agreement. For the purposes of exchanging funds and documents to complete the sale ofthe Property from Seller to Buyer and the purchase of the Property by Buyer from Seller, pursuant to the terms and conditions of this Agreement, Seller and Buyer agree to open the Escrow with the Escrow Agent. The provisions of Section 4 of this Agreement are, and shall constitute, the joint escrow instructions of the Parties to the Escrow Agent for conducting the Escrow. 3.2 Consideration. Buyer shall purchase the Property from Seller for the Purchase Price, subject to the terms and conditions of this Agreement. Buyer shall deposit the Purchase Price into the Escrow, as follows: 3.2.1 Deposit. Upon the Escrow Opening Date, Buyer shall deposit the Deposit into the Escrow. The Deposit shall initially be refundable until the due diligence Palm Plaza Purchase & Sale Agreement v2 Page 10 of 30 309 of 498 Attachment No. 4 condition of Section 3.3 is satisfied, and thereafter shall be nonrefundable unless this Agreement is thereafter terminated due to a Seller default, the failure of a Buyer's condition to Close of Escrow, a termination of this Agreement not due to Buyer's default, or as otherwise xpressly provided in this Agreement. The Deposit shall be held in Escrow until the Close of Escrow and shall be applied to the Purchase Price. 3.2.2 Remaining Purchase Price. At lease one (1) Business Day before the Escrow Closing Date, Buyer shall deposit into the Escrow the amount of the Purchase Price less the amount of the Deposit. 3.2.3 Independent Consideration. Notwithstanding any other provision of this Agreement to the contrary, the sum of One Hundred and No/100 Dollars ($100.00) out of the Deposit shall be paid by Escrow to Seller immediately following Escrow's receipt of the Deposit as "Independent Consideration" for the execution of this Agreement and the rights of Buyer granted herein, which said Independent Consideration shall be paid to Seller in all instances, upon execution hereof is fully earned, shall be applied against the Purchase Price and is not refundable for any reason, notwithstanding anything herein to the contrary. All references to Deposit herein shall mean the Deposit, less the Independent Consideration. 3.3 Due Diligence. 3.3.1 To the extent in Seller's possession, immediately following the Effective Date Seller shall deliver to Buyer, without any representation or warranty by Seller, the Due Diligence Materials (except for the Preliminary Report, which shall be provided by the Title Company). 3.3.2 Prior to the expiration of the Due Diligence Period, Buyer shall have the right to review and approve or disapprove, in its discretion, at Buyer's sole cost and expense, any environmental reports, soils inspection, conditions of title, zoning, surveys, the Due Diligence Materials, and all other reports as Buyer may deem necessary or appropriate in connection with this Agreement. In the event Buyer finds the Property unsatisfactory for any reason, then prior to the expiration of the Due Diligence Period Buyer shall have the right to, by a writing delivered to Seller and Escrow Agent, terminate this Agreement and the Escrow created pursuant thereto, in which event Buyer shall be entitled to the return of all monies previously deposited with Escrow Agent or released to Seller pursuant to this Agreement, and the Escrow and the rights and obligations of the Parties hereunder shall thereafter terminate and Buyer and Seller shall have no obligation to each other (except as otherwise set forth herein). 3.3.3 If, prior to the expiration of the Due Diligence Period, Buyer disapproves by a writing delivered to Seller any matters of title shown in the Preliminary Report, then Seller may, within fourteen (14) business days after its receipt of Buyer's notice of disapproval, elect in writing to eliminate or ameliorate to Buyer's satisfaction the disapproved title matters. Failure of Buyer to give disapproval of any matters of title shown in the Preliminary Report on or before the expiration of the Due Diligence Period shall be deemed to constitute Buyer's approval of all matters of title in the Preliminary Report. If Seller does not elect to eliminate or ameliorate to Buyer's satisfaction any disapproved matters of title Palm Plaza Purchase & Sale Agreement v2 Page 11 of 30 310 of 498 Attachment No. 4 shown in the Preliminary Report, then Buyer shall have the right to, by a writing delivered to Seller and Escrow Agent: (a) waive its prior disapproval, in which event the disapproved matters shall be deemed approved; or (ii) terminate this Agreement and the Escrow created pursuant thereto, in which event Buyer shall be entitled to the return of all monies previously deposited with Escrow Agent or released to Seller pursuant to this Agreement, and the Escrow and the rights and obligations of the Parties hereunder shall thereafter terminate and Buyer and Seller shall have no obligation to each other (except as otherwise set forth herein). 3.3.4 Upon the Effective Date of this Agreement until the expiration of the Due Diligence Period, subject to the provisions of this Section, Buyer may enter upon the Property to conduct any investigation, test, study or analysis related to the development of the Project. Buyer shall pay all costs with respect to such studies and tests and shall be solely responsible for the disposal of any soil samples (including any Hazardous Substance or other wastes in these samples), which obligation shall survive the termination of this Agreement. Buyer shall exercise due care, follow best commercial practices in connection with such entry and testing, and shall comply with all laws, ordinances, rules, regulations, orders and the like in connection with any entry onto or testing of the Property. Prior to any entry onto the Property, Buyer shall obtain and maintain, and shall require that its agents, consultants, contractors and representatives (collectively, the "Agents") to obtain and maintain in full force during the term of this Agreement, at Buyer's sole cost and expense, a policy of comprehensive liability insurance including property damage, with limits of at least $2M per occurrence/$4M aggregate, which will insure The City of National City, its elected officials, officers, agents and employees against liability for injury to persons, damage to property, and death of any person arising in connection with Buyer or its Agents entry upon the Property and/or conducting of tests or studies thereon. Prior to any entry onto the Property, the policy shall be approved in writing as to form and insurance (including approval of the insurance company) by the City. Buyer shall provide City with a copy of any insurance policy required hereunder, including an endorsement that states that the policy will not be cancelled except after thirty (30) days' notice in writing to City and names the additional insureds as required herein. Buyer shall provide City with evidence of such insurance coverage prior to any entry onto the Property by Buyer or its Agents. Prior to each and every entry onto the Property, Buyer shall provide City with not less than 48 hours prior written notice of Buyer or its Agents intended entry upon the Property and/or conducting of tests or studies thereon. Following any such tests or studies, Buyer shall leave the Property in substantially similar condition as of the Effective Date of this Agreement, and Buyer shall indemnify, defend and hold harmless City and its officers, members, employees and agents and the Property from and against any liabilities, claims, damages (including injury or damage to person or property), losses, costs, expenses and fees (including reasonable attorneys' and experts' fees and costs) relating to or resulting from the entry, inspections and studies conducted by Buyer and its Agents on, under, or about the Property. The foregoing indemnity shall survive beyond the Closing, or, if the sale is not consummated, beyond the termination of this Agreement. 3.3.5 If, prior to the expiration of the Due Diligence Period, Buyer disapproves of the condition of the Property, then Buyer shall have the right to, by a writing delivered to Seller and Escrow Agent, terminate this Agreement and the Escrow created pursuant thereto, in which event Buyer shall be entitled to the return of all monies previously deposited with Escrow Agent or released to Seller pursuant to this Agreement, and the Escrow Palm Plaza Purchase & Sale Agreement v2 Page 12 of 30 311 of 498 Attachment No. 4 and the rights and obligations of the Parties hereunder shall thereafter terminate and Buyer and Seller shall have no obligation to each other (except as otherwise set forth herein). 3.3.6 In the event of a termination of this Agreement pursuant to this Section, notwithstanding any other provision of this Agreement to the contrary, Buyer shall pay all escrow fees and costs. 3.4 "AS -IS" Acquisition. The Close of Escrow shall evidence Buyer's unconditional and irrevocable acceptance of the Property in the Property's AS IS, WHERE IS, SUBJECT TO ALL FAULTS CONDITION, AS OF THE CLOSE OF ESCROW, WITHOUT WARRANTY as to character, quality, performance, condition, title, physical condition, soil conditions, the presence or absence of fill, shoring or bluff stability or support, subsurface or lateral support, zoning, land use restrictions, the availability or location of utilities or services, the location of any public infrastructure on or off of the Property (active, inactive or abandoned), the suitability of the Property or the existence or absence of Hazardous Substances affecting the Property and with full knowledge of the physical condition of the Property, the nature of Seller's interest in and use of the Property, all laws applicable to the Property and any and all conditions, covenants, restrictions, encumbrances and all matters of record relating to the Property. The Close of Escrow shall further constitute Buyer's representation and warranty to Seller that: (a) Buyer has had ample opportunity to inspect and evaluate the Property and the feasibility of the uses and activities Buyer is entitled to conduct on the Property; (b) Buyer is relying entirely on Buyer's experience, expertise and Buyer's own inspection of the Property in the Property's current state in proceeding with acquisition of the Property; (c) Buyer accepts the Property in the Property's present condition; (d) to the extent that Buyer's own expertise with respect to any matter regarding the Property is insufficient to enable Buyer to reach an informed conclusion regarding such matter, Buyer has engaged the services of Persons qualified to advise Buyer with respect to such matters; (e) Buyer has received assurances acceptable to Buyer by means independent of Seller or Seller's agents of the truth of all facts material to Buyer's acquisition of the Property pursuant to this Agreement; and (t) the Property is being acquired by Buyer as a result of Buyer's own knowledge, inspection and investigation of the Property and not as a result of any representation made by Seller or Seller's agents relating to the condition of the Property, unless such statement or representation is expressly and specifically set forth in this Agreement. Seller hereby expressly and specifically disclaims any express or implied warranties regarding the Property. 3.5 Reservations. The approval of this Agreement by Seller shall not be binding on the City Council of the City or any commission, committee, board or body of the City regarding any other Approvals required by such bodies. No action by Seller with reference to this Agreement or any related documents shall be deemed to constitute issuance or waiver of any required Approvals regarding the Property or Buyer. 3.6 Non -Discrimination. 3.6.1 Buyer herein covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through Buyer, that there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those Palm Plaza Purchase & Sale Agreement v2 Page 13 of 30 312 of 498 Attachment No. 4 bases are defined in. Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall Buyer itself, or any person claiming under or through Buyer, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees of the Property. The foregoing covenants shall run with the land. 3.6.2 Buyer herein further covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through Buyer, that there shall be no discrimination on the basis of race, gender, religion, national origin, ethnicity, sexual orientation, age or disability in the solicitation, selection, hiring or treatment of any contractors or consultants, to participate in subcontracting/subconsulting opportunities. 3.6.3 Buyer understands and agrees that violation of any Subsection of this Section 3.6 shall be considered a material breach of this Agreement and may result in termination, debarment or other sanctions. 3.7 Form of Nondiscrimination and Nonsegregation Clauses . All deeds, leases or contracts made relative to the Property, improvements thereon, or any part thereof, shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: 3.7.1 (a) (1) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." (2) Notwithstanding paragraph (1), with respect to familial status, paragraph (1) shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in paragraph (1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall also apply to the above paragraph. 3.7.2 (a) (I) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to Palm Plaza Purchase & Sale Agreement v2 Page 14 of 30 313 of 498 Attachment No. 4 the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." (2) Notwithstanding paragraph (1), with respect to familial status, paragraph (1) shall not he construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in paragraph (1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the above paragraph. 3.7.3 In contracts: "There shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the grantee or transferee itself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees of the Property." 3.8 Effect and Duration of Covenants. The covenants established in this Agreement shall run with the land, without regard to technical classification and designation, and shall be for the benefit and in favor of and enforceable against the original Buyer, or if the Buyer is no longer the owner, then against its successors in interest, assigns and heirs. Unless set forth otherwise, the covenants described in Section 3.7 shall commence upon the Close of Escrow and shall be set forth and shall run for the time periods set forth in the applicable Grant Deed. 4. JOINT ESCROW INSTRUCTIONS 4.1 Opening of Escrow. The purchase and sale of the Property shall take place through the Escrow to be conducted by Escrow Agent. Escrow shall be deemed opened when a fully signed copy of this Agreement has been delivered to Escrow Agent. Escrow Agent shall confirm the Escrow Opening Date in writing to each of the Parties, with a copy of the Escrow Agent Consent signed by the authorized representative(s) of the Escrow Agent. 4.2 Escrow Instructions. This Section 4 constitutes the joint escrow instructions of the Parties to Escrow Agent for conduct of the Escrow for the purchase and sale of the Property, as contemplated by this Agreement. Buyer and Seller shall sign such further escrow instructions consistent with the provisions of this Agreement as may be reasonably requested by Escrow Palm Plaza Purchase & Sale Agreement v2 Page 15 of 30 314 of 498 Attachment No. 4 Agent. In the event of any conflict between the provisions of this Agreement and any further escrow instructions requested by Escrow Agent, the provisions of this Agreement shall control. 4.3 Escrow Agent Authority. Seller and Buyer authorize Escrow Agent to: 4.3.1 Charges. Pay and charge Seller and Buyer for their respective shares of the applicable fees, taxes, charges and costs payable by either Seller or Buyer regarding the Escrow; 4.3.2 Settlement/Closing Statements. Release each Party's Escrow Closing Statement to the other Party; 4.3.3 Document Recording. File any documents delivered for recording through the Escrow with the office of the Recorder of the County for recordation in the official records of the County, pursuant to the joint instructions of the Parties; and 4.3.4 Counterpart Documents. Utilize documents signed by Seller or Buyer in counterparts, including attaching separate signature pages to one original of the same document. 4.4 Buyer's Conditions Precedent to Close of Escrow. Provided that the failure of any such condition to be satisfied is not due to a Default under this Agreement by Buyer, Buyer's obligation to purchase the Property from Seller on the Escrow Closing Date shall be conditioned upon the satisfaction or waiver (waivers must be in writing and signed by Buyer) of each of the following conditions on or before the Escrow Closing Date: 4.4.1 Title Policy. Title Company has agreed to issue the Buyer Title Policy to Buyer upon payment of Title Company's premium for such policy; 4.4.2 CEQA Documents. Adoption, approval or certification of the CEQA Documents by each applicable Government; 4.4.3 Seller Escrow Deposits. Seller deposits all of the items into Escrow required by Section 4.7 of this Agreement; 4.4.4 Settlement/Closing Statement. Buyer reasonably approves Buyer's Escrow Closing Statement; and 4.4.5 Seller Pre -Closing Obligations. Seller performs all of Seller's material obligations required to be performed by Seller pursuant to this Agreement prior to the Close of Escrow. 4.5 Seller's Conditions Precedent to Close of Escrow. Provided that the failure of any such condition to be satisfied is not due to a Default under this Agreement by Seller, Seller's obligation to sell the Property to Buyer on the Escrow Closing Date shall be conditioned upon the satisfaction or waiver (waivers must be in writing and signed by Seller) of each of the following conditions precedent on or before the Escrow Closing Date: Palm Plaza Purchase & Sale Agreement v2 Page 16 of 30 315 of 498 Attachment No. 4 4.5.1 Compensation Agreement. Approval and full execution of a compensation agreement by each and every affected taxing entity as set forth in the LRPMP; 4.5.2 Building Permit. Buyer obtains a building permit from the City of National City for the development of the Project; 4.5.3 CEQA Documents. Adoption, approval or certification of the CEQA Documents by each applicable Government; 4.5.4 Buyer Escrow Deposits. Buyer deposits all of the items into Escrow required by Section 4.6 of this Agreement; 4.5.5 Settlement/Closing Statement. Seller reasonably approves Seller's Escrow Closing Statement; and 4.5.6 Title Policy. The Company has agreed to issue the Buyer Title Policy to Buyer upon payment of Title Company's premium for such policy; 4.5.7 Buyer Pre -Closing Obligations. Buyer performs all of Buyer's material obligations required to be performed by Buyer pursuant to this Agreement prior to Close of Escrow. 4.6 Buyer's Escrow Deposits. Buyer shall deposit the following items into Escrow and, concurrently, provide a copy of each document submitted into Escrow to Seller, at least one (1) Business Day prior to the Escrow Closing Date: 4.6.1 Closing Funds. All amounts required to be deposited into Escrow by Buyer under the terms of this Agreement to close the Escrow; 4.6.2 Certificate of Grant Deed Acceptance. The Certificate of Acceptance attached to the Grant Deed signed by Buyer in recordable form; 4.6.3 Escrow Closing Statement. The Buyer's Escrow Closing Statement signed by the authorized representative(s) of Buyer; and 4.6.4 Other Reasonable Items. Any other documents or funds required to be delivered by Buyer under the terms of this Agreement or as otherwise reasonably requested by Escrow Agent or Title Company in order to close the Escrow or comply with applicable Law that have not previously been delivered by Buyer. 4.7 Seller's Escrow Deposits. Seller shall deposit the following documents into Escrow and, concurrently, provide a copy of each document deposited into Escrow to Buyer, at least one (1) Business Day prior to the Escrow Closing Date: 4.7.1 Grant Deed. The Grant Deed signed by the authorized representative(s) of Seller in recordable form; Palm Plaza Purchase & Sale Agreement v2 Page 17 of 30 316 of 498 Attachment No. 4 4.7.2 Escrow Closing Statement. The Seller's Escrow Closing Statement signed by the authorized representative(s) of Seller; 4.7.3 FIRPTA Affidavit. A FIRPTA affidavit signed by the authorized representative(s) of Seller, in the form used by the Escrow Agent; Seller; and 4.7.4 Form 593. A Form 593 signed by the authorized representative(s) of 4.7.5 Other Reasonable Items. Any other documents or funds required to be delivered by Seller under the terms of this Agreement or as otherwise reasonably requested by Escrow Agent or Title Company in order to close the Escrow or comply with applicable Law that have not been previously delivered by Seller. 4.8 Closing Procedure. When each of Buyer's Escrow deposits, as set forth in Section 4.6 of this Agreement, and each of Seller's Escrow deposits as set forth in Section 4.7 of this Agreement, are deposited into Escrow, Escrow Agent shall request confirmation in writing from both Buyer and Seller that each of their respective conditions precedent to the Close of Escrow, as set forth in Sections 4.4 and 4.5, respectively, are satisfied or waived. Upon Escrow Agent's receipt of written confirmation from both Buyer and Seller that each of their respective conditions precedent to the Close of Escrow are satisfied or waived, Escrow Agent shall close the Escrow by doing all of the following: 4.8.1 Recording and Distribution of Documents. Escrow Agent shall cause the following documents to be filed with the Recorder of the County for recording in the official records of the County regarding the Property in the following order of priority at Close of Escrow: (a) the Grant Deed; and (b) any other documents to be recorded regarding the Property through the Escrow upon the joint instructions of the Parties. At Close of Escrow, Escrow Agent shall deliver conformed copies of all documents filed for recording with in the official records of the County through the Escrow to Seller, Buyer and any other Person designated in the written joint escrow instructions of the Parties to receive an original or conformed copy of each such document. Each conformed copy of a document filed for recording by Escrow Agent pursuant to this Agreement shall show all recording information. The Parties intend and agree that this Section 4.8.1 shall establish the relative priorities of the documents to be recorded in the official records of the County through the Escrow, by providing for recordation of senior interests prior to junior interests, in the order provided in this Section 4.8.1; 4.8.2 Funds. Distribute all funds held by the Escrow Agent pursuant to the Escrow Closing Statements approved in writing by Seller and Buyer, respectively; 4.8.3 FIRPTA Affidavit. File the FIRPTA Affidavit with the United States Internal Revenue Service; and 4.8.4 Form 593. File the Form 593 with the California Franchise Tax Board; Palm Plaza Purchase & Sale Agreement v2 Page 18 of 30 317 of 498 Attachment No. 4 4.8.5 Title Policy. Obtain from the Title Company and deliver to Buyer the Buyer Title Policy issued by the Title Company, with a copy delivered to Seller. 4.9 Close of Escrow. The Close of Escrow shall occur on or before the Escrow Closing Date. The City Manager in his or her sole and absolute discretion, acting on behalf of the Seller, is authorized to agree to one or more extensions of the Escrow Closing Date on behalf of Seller up to a maximum time period extension of ninety (90) days in the aggregate; provided that there shall be no extension permitted of the June 30, 2017 outside Escrow Closing Date set forth in Section 1.1.26. If for any reason (other than a Default or Event of Default by such Party) the Close of Escrow has not occurred on or before the Escrow Closing Date, then any Party not then in Default under this Agreement may cancel the Escrow and terminate this Agreement, without liability to the other Party or any other Person for such cancellation and termination, by delivering Notice of termination to both the other Party and Escrow Agent. Following any such Notice of termination of this Agreement and cancellation of the Escrow, the Parties and Escrow Agent shall proceed pursuant to Section 4.13 of this Agreement. Without limiting the right of either Party to cancel the Escrow and terminate this Agreement pursuant to this Section 4.9, if the Escrow does not close on or before the Escrow Closing Date and neither Party has exercised its contractual right to cancel the Escrow and terminate this Agreement under this Section 4.9 before the first date on which Escrow Agent Notifies both Parties that Escrow is in a position to close in accordance with the terms and conditions of this Agreement, then the Escrow shall close as soon as reasonably possible following the first date on which Escrow Agent Notifies both Parties that Escrow is in a position to close in accordance with the terms and conditions of this Agreement. 4.10 Escrow Costs. Escrow Agent shall Notify Buyer and Seller of the costs to be borne by each of them at the Close of Escrow by delivering an Escrow Closing Statement to both Seller and Buyer at least four (4) Business Days prior to the Escrow Closing Date. Each Party shall pay its own costs and expenses arising in connection with the Close of Escrow (including, without limitation, its own attorneys' and advisors' fees, charges, and disbursements), except the following costs ("Closing Costs"), which shall be allocated between the Parties as follows: (a) Escrow Agent charges for the conduct of the Escrow shall be paid one-half (1/2) by Seller and one-half (1/2) by Buyer; (b) The cost of the Buyer Title Policy attributable to the standard coverage portion shall be paid by Seller; (c) The cost of the Buyer Title Policy attributable to the extended coverage portion or any additional coverage and any endorsements shall be paid by Buyer; (d) The cost of any and all State, County, or City documentary stamps or transfer taxes regarding the conveyance of the Property through the Escrow shall be paid by Buyer; (e) The cost of any recording fees in connection with the recording of any documents in the official records of the County for the Close of Escrow and any and all other charges, fees, and taxes levied by each and every Government relative to the conveyance of the Property through Escrow shall be paid by Buyer; Palm Plaza Purchase & Sale Agreement v2 Page 19 of 30 318 of 498 Attachment No. 4 (f) Ad valorem taxes and assessments, if any, upon the Property, prior to the conveyance of title of the Property to Buyer shall be paid by Seller, and after the conveyance of title of the Property to Buyer shall be paid by Buyer consistent with Section 4.11 of this Agreement; and (g) All other closing fees and costs shall be charged to and paid by Seller and Buyer in accordance with customary practices in the County. 4.11 Allocation of Taxes. Real Estate Taxes relating to the Property, if any, shall be prorated between Seller and Buyer as of Midnight on the date prior to the Close of Escrow. 4.12 Escrow Cancellation Charges. If the Escrow fails to close due to Seller's Default under this Agreement, Seller shall pay all ordinary and reasonable Escrow and title order cancellation charges charged by Escrow Agent or Title Company, respectively. If the Escrow fails to close due to Buyer's Default under this Agreement, Buyer shall pay all ordinary and reasonable Escrow and title order cancellation charges charged by Escrow Agent or Title Company, respectively. Except as set forth in Section 3.3., above, if the Escrow fails to close for any reason other than the Default of either Buyer or Seller, Buyer and Seller shall each pay one-half (1/2) of any ordinary and reasonable Escrow and title order cancellation charges charged by Escrow Agent or Title Company, respectively. 4.13 Escrow Cancellation. If this Agreement is terminated pursuant to a contractual right granted to a Party in this Agreement to terminate this Agreement (other than due to an Event of Default by the other Party), the Parties shall do all of the following: 4.13.1 Cancellation Instructions. The Parties shall, within three (3) Business Days following Escrow Agent's written request, sign any reasonable Escrow cancellation instructions requested by Escrow Agent; 4.13.2 Return of Funds and Documents. Within ten (10) Business Days following receipt by the Parties of a settlement statement of Escrow and title order cancellation charges from Escrow Agent (if any) or within twenty (20) calendar days following Notice of termination, whichever is earlier: (a) Buyer or Escrow Agent shall return to Seller all documents previously delivered by Seller to Buyer or Escrow Agent, respectively, regarding the Property or the Escrow; (b) Seller or Escrow Agent shall return to Buyer all documents previously delivered by Buyer to Seller or Escrow Agent, respectively, regarding the Property or the Escrow; (c) Escrow Agent shall, unless otherwise expressly provided in this Agreement, return to Buyer all funds deposited in Escrow by Buyer, less Buyer's share of customary and reasonable Escrow and title order cancellation charges (if any) in accordance with Sections 3.3 and 4.12 of this Agreement; and (d) Escrow Agent shall, unless otherwise provided in this Agreement, return to Seller all funds deposited in Escrow by Seller, less Seller's share of customary and reasonable Escrow and title order cancellation charges (if any) in accordance with Section 4.12 of this Agreement. 4.14 Report to IRS. After the Close of Escrow and prior to the last date on which such report is required to be filed with the Internal Revenue Service under applicable Federal law, if such report is required pursuant to Internal Revenue Code Section 6045(e), Escrow Agent Palm Plaza Purchase & Sale Agreement v2 Page 20 of 30 319 of 498 Attachment No. 4 shall report the gross proceeds of the purchase and sale of the Property to the Internal Revenue Service on Form 1099-B, W-9 or such other form(s) as may be specified by the Internal Revenue Service pursuant to Internal Revenue Code Section 6045(e). Concurrently with the filing of such reporting form with the Internal Revenue Service, Escrow Agent shall deliver a copy of the filed form to both Seller and Buyer. 4.15 Condemnation. If any material portion of the Property, or any interest in any portion of the Property, is taken by condemnation prior to the Close of Escrow by any condemning authority other than Seller, including, without limitation, the filing of any notice of intended condemnation or proceedings in the nature of eminent domain, commenced by any governmental authority, other than Seller, Seller shall immediately give Buyer Notice of such occurrence, and Buyer shall have the option, exercisable within ten (10) Business Days after receipt of such Notice from Seller, to either: (i) terminate this Agreement; or (ii) continue with this Agreement in accordance with its terms, in which event Seller shall assign to Buyer any right of Seller to receive any condemnation award attributable to the Property. 5. REMEDIES AND INDEMNITY 5.1 BUYER'S RIGHT TO SPECIFIC PERFORMANCE AND LIMITATION ON RECOVERY OF DAMAGES. 5.1.1 ELECTION OF REMEDIES. DURING THE CONTINUANCE OF AN EVENT OF DEFAULT BY SELLER UNDER THIS AGREEMENT PRIOR TO THE CLOSING, BUYER SHALL BE LIMITED TO EITHER OF THE FOLLOWING REMEDIES: (1) AN ACTION AGAINST SELLER FOR SPECIFIC PERFORMANCE OF THIS AGREEMENT; OR (2) TERMINATION OF THIS AGREEMENT AND AN ACTION TO RECOVER THE DEPOSIT. UNDER NO CIRCUMSTANCES SHALL SELLER BE LIABLE TO BUYER UNDER THIS AGREEMENT FOR ANY AMOUNT EXCEEDING THE AMOUNT SET FORTH IN THIS SECTION 5.1.1, ANY SPECULATIVE, CONSEQUENTIAL, COLLATERAL, SPECIAL, PUNITIVE OR INDIRECT DAMAGES OR FOR ANY LOSS OF PROFITS SUFFERED OR CLAIMED TO HAVE BEEN SUFFERED BY BUYER. 5.1.2 WAIVER OF RIGHTS. SELLER AND BUYER EACH ACKNOWLEDGE AND AGREE THAT SELLER WOULD NOT HAVE ENTERED INTO THIS AGREEMENT IF SELLER WERE TO BE LIABLE TO BUYER FOR ANY MONETARY DAMAGES, MONETARY RECOVERY OR ANY REMEDY DURING THE CONTINUANCE OF AN EVENT OF DEFAULT UNDER THIS AGREEMENT BY SELLER, OTHER THAN SPECIFIC PERFORMANCE OF THIS AGREEMENT OR TERMINATION OF THIS AGREEMENT AND PAYMENT OF THE AMOUNT SPECIFIED IN CLAUSE "(2)" OF SECTION 5.1.1 OF THIS AGREEMENT. ACCORDINGLY, SELLER AND BUYER AGREE THAT THE REMEDIES SPECIFICALLY PROVIDED FOR IN SECTION 5.1.1 OF THIS AGREEMENT ARE REASONABLE AND SHALL BE BUYER'S SOLE AND EXCLUSIVE RIGHTS AND REMEDIES DURING THE CONTINUANCE OF AN EVENT OF DEFAULT UNDER THIS AGREEMENT BY SELLER BUYER WAIVES ANY RIGHT TO PURSUE ANY REMEDY OR DAMAGES AGAINST SELLER ARISING FROM OR RELATING TO THIS AGREEMENT OTHER THAN THOSE SPECIFICALLY PROVIDED IN SECTION 5.1.1 OF THIS AGREEMENT. Palm Plaza Purchase & Sale Agreement v2 Page 21 of 30 320 of 498 Attachment No. 4 5.1.3 CALIFORNIA CIVIL CODE SECTION 1542 WAIVER. BUYER ACKNOWLEDGES THE PROTECTIONS OF CALIFORNIA CIVIL CODE SECTION 1542 REGARDING THE WAIVERS AND RELEASES CONTAINED IN THIS SECTION 5.1, WHICH CIVIL CODE SECTION READS AS FOLLOWS: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 5.1.4 ACKNOWLEDGMENT. BY INITIALING BELOW, BUYER KNOWINGLY AND VOLUNTARILY WAIVES THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542 AND ALL OTHER STATUTES AND JUDICIAL DECISIONS (WHETHER STATE OR FEDERAL) OF SIMILAR EFFECT SOLELY REGARDING THE WAIVERS AND RELEASES CONTAINED IN THIS SECTION 51. Initiazed Buyer rey:. ntative(s) 5.1.5 STATEMENT OF INTENT. CALIFORNIA CIVIL CODE SECTION 1542 NOTWITHSTANDING, IT IS THE INl ENTION OF BUYER TO BE BOUND BY THE LIMITATIONS ON DAMAGES AND REMEDIES SET FORTH IN THIS SECTION 5.1, AND BUYER HEREBY RELEASES ANY AND ALL CLAIMS AGAINST SELLER FOR MONETARY DAMAGES, MONETARY RECOVERY OR OTHER LEGAL OR EQUITABLE RELIEF RELATED TO ANY EVENT OF DEFAULT UNDER THIS AGREEMENT BY SELLER, EXCEPT AS SPECIFICALLY PROVIDED IN THIS SECTION 5.1, WHETHER OR NOT ANY SUCH RELEASED CLAIMS WERE KNOWN OR UNKNOWN TO BUYER AS OF THE EFFECTIVE DATE OF THIS AGREEMENT. 5.2 LIQUIDATED DAMAGES TO SELL F . IF THE CLOSE OF ESCROW DOES NOT OCCUR ON OR BEFORE THE ESCROW CLOSING DATE DUE TO BUYER'S DEFAULT, THEN SELLER SHALL RETAIN THE DEPOSIT AS LIQUIDATED DAMAGES. THE AMOUNT OF THE DEPOSIT IS THE REASONABLE ESTIMATE BY THE PARTIES OF THE DAMAGES SELLER WOULD SUFFER FROM SUCH DEFAULT, IT BEING AGREED THAT IT IS EXTREMELY DIFFICULT, IF NOT IMPOSSIBLE AND IMPRACTICABLE, TO FIX THE EXACT AMOUNT OF DAMAGE THAT WOULD BE INCURRED BY SELLER AS A RESULT OF SUCH DEFAULT BY BUYER. UPON SUCH A DEFAULT BY BUYER, ESCROW SHALL BE CANCELED AND THE PARTIES SHALL PROCEED IN ACCORDANCE WITH SECTION 4.12 OF THIS AGREEMENT. IN ADDITION, IF ALL OR ANY PORTION OF THE DEPOSIT HAS BEEN DEPOSITED INTO ESCROW BY BUYER, ESCROW AGENT IS HEREBY IRREVOCABLY INSTRUC I ED BY BUYER AND SELLER TO DISBURSE THE DEPOSIT TO SELLER AS LIQUIDATED DAMAGES FOR BUYER'S Palm Plaza Purchase & Sale Agreement v2 Page 22 of 30 321 of 498 Attachment No. 4 DEFAULT UNDER THIS AGREEMENT AND FAILURE TO COMPLETE THE PURCHASE OF THE PREMISES, PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, ET. SEQ. 5.3 Legal Actions. Either Party may institute legal action, at law or in equity, to enforce or interpret the rights or obligations of the Parties under this Agreement or recover damages, subject to the provisions of Section 5.1 or Section 5.2 of this Agreement, as applicable. 5.4 Rights and Remedies are Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the Parties set forth in this Agreement are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by such Party, at the same or different times, of any other rights or remedies for the same Default or the same rights or remedies for any other Default by the other Party. 5.5 Indemnification. 5.5.1 Buyer Indemnification. Buyer shall Indemnify the Seller Parties against any Claim related to this Agreement to the extent such Claim arises from: (a) any act, omission or negligence of the Buyer; (b) any agreements that Buyer (or anyone claiming by or through Buyer) makes with a Third Person regarding the property; (c) any worker's compensation claim or determination relating to any employee of Buyer or its contractors; or (d) any Environmental Claim attributable to any action or omission of Buyer. 5.5.2 Independent of Insurance Obligations. Buyer's indemnification obligations under this Agreement shall not be construed or interpreted as in any way restricting, limiting, or modifying Buyer's insurance or other obligations under this Agreement. Buyer's obligation to Indemnify the Seller Parties under this Agreement is independent of Buyer's insurance and other obligations under this Agreement. Buyer's compliance with Buyer's insurance obligations and other obligations under this Agreement shall not in any way restrict, limit or modify Buyer's indemnification obligations under this Agreement and are independent of Buyer's indemnification and other obligations under this Agreement. 5.5.3 Survival of Indemnification and Defense Obligations. The indemnity and defense obligations of the Buyer under this Agreement shall survive the expiration or earlier termination of this Agreement. 5.5.4 Indemnification Procedures. Wherever this Agreement requires any Indemnitor to Indemnify any Indemnitee: (a) Prompt Notice. The Indemnitee shall promptly Notify the Indemnitor of any Claim. (b) Selection of Counsel. The Indemnitor shall select counsel reasonably acceptable to Indemnitee. If the Indemnitee, in good faith, determines that its interests are not adequately protected by being provided a defense by the Indemnitor, the Indemnitee (and the other Indemnified parties) may, at its election, conduct the defense or participate in the defense of any Claim related in any way to this indemnification. If the Indemnitee, on behalf of the Palm Plaza Purchase & Sale Agreement v2. Page 23 of 30 322 of 498 Attachment No. 4 Indemnified parties, makes the foregoing election to conduct its own defense or obtain independent legal counsel in defense of any Claim related to this indemnification, then the Indemnitor shall pay all of the Legal Costs related thereto, including, without limitation, reasonable attorneys' fees and costs. (c) Cooperation. The Indemnitee shall reasonably cooperate with the Indemnitor's defense of the Indemnitee. (d) Settlement. The Indemnitor may only settle a Claim with the consent of the Indemnitee. Any settlement shall procure a complete release of the Indemnitee from the subject Claims, shall not require the Indemnitee to make any payment to the claimant and shall provide that neither the Indemnitee, nor the Indemnitor on behalf of the Indemnitee, admits any liability. 6. GENERAL PROVISIONS 6.1 Incorporation of Recitals. The Recitals of fact set forth preceding this Agreement are true and correct and are incorporated into this Agreement in their entirety by this reference. 6.2 Notices, Demands and Communications Between the Parties. 6.2.1 Delivery. Any and all Notices submitted by any Party to another Party pursuant to or as required by this Agreement shall be proper, if in writing and sent by messenger for immediate personal delivery, nationally recognized overnight (one Business Day) delivery service (i.e., United Parcel Service, Federal Express, etc.) or by registered or certified United States mail, postage prepaid, return receipt requested, to the address of the recipient Party, as designated below in Section 6.2.2. Notice may be sent in the same manner to such other addresses as either Party may from time to time designate by Notice in accordance with this Section 6.2. Notice shall be deemed received by the addressee, regardless of whether or when any return receipt is received by the sender or the date set forth on such return receipt, on the day that the Notice is sent by messenger for immediate personal delivery, one Business Day after delivery to a nationally recognized overnight delivery service or three (3) calendar days after the Notice is placed in the United States mail in accordance with this Section 6.2. Any attorney representing a Party may give any Notice on behalf of such Party. 6.2.2 Addresses. The Notice addresses for the Parties, as of the Effective Date of this Agreement, are as follows: To Buyer: To Seller: Palm Plaza Associates, LLC Attn: Jim Reynolds 4980 North Harbor Drive, Suite 203 San Diego, California 92106 City of National City 1243 National City Boulevard National City, California 91950 Palm Plaza Purchase & Sale Agreement v2 Page 24 of 30 323 of 498 Attachment No. 4 Attention: City Manager With a Copy to: Claudia Silva, City Attorney City of National City 1243 National City Boulevard National City, California 91950 6.3 Relationship of Parties. The Parties each intend and agree that Seller and Buyer are independent contracting entities and do not intend by this Agreement to create any partnership, joint venture or similar business arrangement, relationship or association between them. 6.4 Warranty Against Payment of Consideration for Agreement. Buyer represents and warrants to Seller that: (a) Buyer has not employed or retained any Person to solicit or secure this Agreement upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide employees of Buyer and Third Persons to whom fees are paid for professional services related to the documentation of this Agreement; and (b) no gratuities, in the form of entertainment, gifts or otherwise have been or will be given by Buyer or any of Buyer's agents, employees or representatives to any elected or appointed official or employee of the Seller in an attempt to secure this Agreement or favorable terms or conditions for this Agreement. Breach of the representations or warranties of this Section 6.4 shall entitle Seller to terminate this Agreement and cancel the Escrow (if open) upon seven (7) calendar days Notice to Buyer and, if the Escrow is open, to Escrow Agent. Upon any such termination of this Agreement, Buyer shall immediately refund any payments made to or on behalf of Buyer to Seller pursuant to this Agreement or otherwise related to the Property, any Approval or any CEQA Document, prior to the date of such termination. 6.5 Calculation of Time Periods. Unless otherwise specified, all references to time periods in this Agreement measured in days shall be to consecutive calendar days, all references to time periods in this Agreement measured in months shall be to consecutive calendar months and all references to time periods in this Agreement measured in years shall be to consecutive calendar years. Any reference to Business Days in this Agreement shall mean consecutive Business Days. 6.6 Principles of Interpretation. No inference in favor of or against any Party shall be drawn from the fact that such Party has drafted any part of this Agreement. The Parties have both participated substantially in the negotiation, drafting and revision of this Agreement, with advice from legal or other counsel and advisers of their own selection. A word, term or phrase defined in the singular in this Agreement may be used in the plural, and vice versa, all in accordance with ordinary principles of English grammar, which shall govern all language in this Agreement. The words "include" and "including" in this Agreement shall be construed to be followed by the words "without limitation". Each collective noun in this Agreement shall be interpreted as if followed by the words "(or any part of it)", except where the context clearly requires otherwise. Every reference to any document, including this Agreement, refers to such document, as modified from time to time (excepting any modification that violates this Agreement), and includes all exhibits, schedules, addenda and riders to such document. Every reference to a law, statute, regulation, order, form or similar governmental requirement refers Palm Plaza Purchase & Sale Agreement v2 Page 25 of 30 324 of 498 Attachment No. 4 to each such requirement as amended, modified, renumbered, superseded or succeeded, from time to time. 6.7 Governing Law. The procedural and substantive laws of the State shall govern the interpretation and enforcement of this Agreement, without application of conflicts or choice of laws principles or statutes. The Parties acknowledge and agree that this Agreement is entered into, is to be icily performed in and relates to real property located in the County of San Diego, State of California. All legal actions arising from this Agreement shall be filed in the Superior Court of the State in and for the County or in the United States District Court with jurisdiction in the County. 6.8 Unavoidable Delay; Extension of Time of Performance. 6.8.1 Notice. Subject to any specific provisions of this Agreement stating that they are not subject to Unavoidable Delay or otherwise limiting or restricting the effects of an Unavoidable Delay, performance by either Party under this Agreement shall not be deemed or considered to be in Default, where any such Default is due to the occurrence of an Unavoidable Delay. Any Party claiming an Unavoidable Delay shall Notify the other Party: (a) within three (3) calendar days after such Party knows of any such Unavoidable Delay; and (b) within three (3) calendar days after such Unavoidable Delay ceases to exist. To be effective, any Notice of an Unavoidable Delay must describe the Unavoidable Delay in reasonable detail. The Party claiming an extension of time to perform due to an Unavoidable Delay shall exercise commercially reasonable efforts to cure the condition causing the Unavoidable Delay, within a reasonable time. The extension of time for performance under this Agreement resulting from the occurrence of an Unavoidable Delay shall commence on the date of occurrence of the condition causing the Unavoidable Delay and shall, except for a legal action described in Section 6.12 of this Agreement, in no event be longer than ninety (90) calendar days after written Notice is received by a Party from the other Party of the occurrence of such an Unavoidable Delay. 6.8.2 Assumption of Economic Risks. EACH PARTY EXPRESSLY AGREES THAT ADVERSE CHANGES IN ECONOMIC CONDITIONS, OF EITHER PARTY SPECIFICALLY OR THE ECONOMY GENERALLY, OR CHANGES IN MARKET CONDITIONS OR DEMAND OR CHANGES IN THE ECONOMIC ASSUMPTIONS OF EITHER PARTY THAT MAY HAVE PROVIDED A BASIS FOR ENTERING INTO THIS AGREEMENT SHALL NOT OPERATE TO EXCUSE OR DELAY THE PERFORMANCE OF EACH AND EVERY ONE OF EACH PARTY'S OBLIGATIONS AND COVENANTS ARISING UNDER THIS AGREEMENT. ANYTHING IN THIS AGREEMENT TO THE CONTRARY NOTWITHSTANDING, THE PARTIES EXPRESSLY ASSUME THE RISK OF UNFORESEEABLE CHANGES IN ECONOMIC CIRCUMSTANCES OR MARKET DEMAND OR CONDITIONS AND WAIVE, TO THE GREATEST EXTENT ALLOWED BY LAW, ANY DEFENSE, CLAIM, OR CAUSE OF ACTION BASED IN WHOLE OR IN PART ON ECONOMIC NECESSITY, IMPRACTICABILITY, CHANGED ECONOMIC CIRCUMSTANCES, FRUSTRATION OF PURPOSE, OR SIMILAR THEORIES. THE PARTIES AGREE THAT ADVERSE CHANGES IN ECONOMIC CONDITIONS, EITHER OF THE PARTY SPECIFICALLY OR THE ECONOMY GENERALLY, OR CHANGES IN MARKET CONDITIONS OR Palm Plaza Purchase & Sale Agreement v2 Page 26 of 30 325 of 498 Attachment No. 4 DEMANDS, SHALL NOT OPERATE TO EXCUSE OR DELAY THE STRICT OBSERVANCE OF EACH AND EVERY ONE OF THE OBLIGATIONS, COVENANTS, CONDITIONS AND REQUIREMENTS OF THIS AGREEMENT. THE PARTIES EXPRESSLY ASSUME THE RISK OF SUCH ADVERSE ECONOMIC OR MARKET CHANGES, WHETHER OR NOT FORESEEABLE AS OF THE % FECTDAIL. i/ Initi s of &i Initials of Authorized Seller Representative(s) 6.9 Tax Consequences. Buyer acknowledges and agrees that Buyer shall bear any and all responsibility, liability, costs or expenses connected in any way with any tax consequences experienced by Buyer related to this Agreement. 6.10 Real Estate Commissions. 6.10.1 Seller Warranty. Seller: (a) represents and warrants that Seller did not engage or deal with any broker or finder in connection with this Agreement, and no Person is entitled to any commission or finder's fee regarding this Agreement on account of any agreement or arrangement made by Seller; and (b) shall Indemnify Buyer against any breach of the representation and warranty set forth in Subsection (a) of this Section 6.10.1. 6.10.2 Buyer Warranty. Buyer: (a) represents and warrants that Buyer did not engage or deal with any broker or finder in connection with this Agreement, and no Person is entitled to any commission or finder's fee regarding this Agreement on account of any agreement or arrangement made by Buyer; and (b) shall Indemnify Seller against any breach of the representation and warranty set forth in Subsection (a) of this Section 6.10.2. 6.11 No Third -Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any Person other than the Parties and their respective permitted successors and assigns, nor is anything in this Agreement intended to relieve or discharge any obligation of any Third Person to any Party or give any Third Person any right of subrogation or action over or against any Party. 6.12 Buyer Assumption of Risks of Legal Challenges. Buyer assumes the risk of delays or damages that may result to Buyer from each and every Third Person legal action related to Seller's approval of this Agreement or any associated Approvals, even in the event that an error, omission or abuse of discretion by Seller is determined to have occurred. If a Third Person files a legal action regarding Seller's approval of this Agreement or any associated Approvals (exclusive of legal actions alleging violation of Government Code Section 1090 by officials of Seller), Buyer shall have the option to either: (a) cancel the Escrow and terminate this Agreement, in which case the Parties and the Escrow Agent shall proceed in accordance with Section 4.13 of this Agreement; or (b) Indemnify Seller against such Third Person legal action, including all Legal Costs, monetary awards, sanctions and the expenses of any and all financial or performance obligations resulting from the disposition of the legal action; provided, however, that option "(a)" under this Section 6.12 shall only be available to Buyer prior to the Close of Escrow. Should Buyer fail to Notify Seller of Buyer's election Palm Plaza Purchase & Sale Agreement v2 Page 27 of 30 326 of 498 Attachment No. 4 pursuant to this Section 6.12 at least fifteen (1.5) calendar days before response to the legal action is required by Seller, prior to the Close of Escrow, Buyer shall be deemed to have elected to cancel the Escrow and terminate this Agreement pursuant to this Section 6.12 and, following the Close of Escrow, Buyer shall be deemed to have elected to Indemnify Seller against such Third Person legal action pursuant to this Section 6.12, all without further Notice to or action by either Party. Seller shall reasonably cooperate with Buyer in defense of Seller in any legal action subject to this Section 6.12, subject to Buyer completely performing Buyer's indemnity obligations for such legal action. Should Buyer elect or be deemed to elect to Indemnify Seller regarding a legal action subject to this Section 6.12, but fail to or stop providing such indemnification of Seller, then Seller shall have the right to terminate this Agreement or cancel the Escrow (or both) by Notice to Buyer and, if the Escrow is open, to the Escrow Agent. Nothing contained in this Section 6.12 is intended to be nor shall be deemed or construed to be an express or implied admission that Seller may be liable to Buyer or any Person for damages or other relief regarding an alleged or established failure of Seller to comply with the law. Any legal action that is subject to this Section 6.12 (including any appeal periods and the pendency of any appeals) shall constitute an Unavoidable Delay and the time periods for performance by either Party under this Agreement may be extended pursuant to the provisions of this Agreement regarding Unavoidable Delay. 6.13 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs, executors, administrators, legal representatives, successors and assigns. 6.14 Time Declared to be of the Essence. As to the performance of any obligation under this Agreement of which time is a component, the performance of such obligation within the time specified is of the essence. 6.15 Entire Agreement. This Agreement integrates all of the terms and conditions mentioned in this Agreement or incidental to this Agreement, and supersedes all prior or contemporaneous negotiations or previous agreements between the Parties, whether written or oral, with respect to all or any portion of the Property. 6.16 Waivers and Amendments. All waivers of the provisions of this Agreement must be in writing and signed by the authorized representative(s) of the Party making the waiver. All amendments to this Agreement must be in writing and signed by the authorized representative(s) of both Seller and Buyer. 6.17 No Imiplied Waiver. Failure to insist on any one occasion upon strict compliance with any term, covenant, condition, restriction or agreement contained in this Agreement shall not be deemed a waiver of such term, covenant, condition, restriction or agreement, nor shall any waiver or relinquishment of any rights or powers under this Agreement, at any one time or more times, be deemed a waiver or relinquishment of such right or power at any other time or times. 6.18 City Manager Implementation. Seller shall implement this Agreement through the City Manager, acting on behalf of the Seller. The City Manager or his/her designee is hereby authorized by Seller to enter into agreements and sign documents referenced in this Palm Plaza Purchase & Sale Agreement v2 Page 28 of 30 327 of 498 Attachment No. 4 Agreement or reasonably required to implement this Agreement on behalf of Seller, to issue approvals, interpretations or waivers, and to enter into certain amendments to this Agreement on behalf of Seller, to the extent that any such action(s) does/do not increase the monetary obligations of Seller. All other actions shall require the consideration and approval of the Seller's governing body, unless expressly provided otherwise by action of the Seller's governing body. Nothing in this Section 6.18 shall restrict the submission to the Seller's governing body of any matter within the City Manager's authority under this Section 6.18, in the City Manager's sole and absolute discretion, to obtain the Seller's governing body's express and specific authorization on such matter. The specific intent of this Section 6.18 is to authorize certain actions on behalf of Seller by the City Manager, but not to require that such actions be taken by the City Manager including, without limitation, any extension(s) granted pursuant to Section 4.9 of this Agreement, without consideration by Seller's governing body. 6.19 Survival of Agreement. All of the provisions of this Agreement shall be applicable to any dispute between the Parties arising from this Agreement, whether prior to or following expiration or termination of this Agreement, until any such dispute is finally and completely resolved between the Parties, either by written settlement, entry of a non -appealable judgment or expiration of all applicable statutory limitations periods and all terms and conditions of this Agreement relating to dispute resolution, indemnity or limitations on damages or remedies shall survive any expiration or termination of this Agreement. 6.20 Counterparts. This Agreement shall be signed in three (3) triplicate originals, each of which is deemed to be an original. 6.21 Facsimile or Electronic Signatures. Signatures delivered by facsimile or electronic mail shall be binding as originals upon the Party so signing and delivering; provided, however, that original signature(s) of each Party shall be required for each document to be recorded. [Signatures on following page] SIGNATURE PAGE TO REAL PROPERTY PURCHASE AND SALE AGREEMENT ANI) JOINT ESCROW INSTRUCTIONS Palm Plaza Purchase & Sale Agreement v2 Page 29 of 30 328 of 498 Attachment No. 4 IN WITNESS WHEREOF, the Parties have signed and entered into this Agreement by and through the signatures of their respective authorized representative(s) as follows: "SELLER" "BUYER" CITY OF NATIONAL CITY, a California PALM PLAZA ASSOCIATES, LLC, a municipal corporation California limited liability company *see notes below By: Name: Title: City Manager By: Name: ti/ j #44 M . 14 L.L Title: W 44/444 4 G- µ�, v.84 -... ATTEST: By: By: Name: Name: � �..., .. i E '-i , b r Title: City Clerk Title: APPROVED AS TO FORM: *Notes: This document must be executed by the Corporation's Chief Executive Officer, President or Vice -President, on the one hand, By: and the Corporations' Chief Financial Officer, Name: Claudia Gacitua Silva Treasurer, Assistant Treasurer or Secretary on Title: City Attorney the other hand. KANE, BALLMER & BERKMAN By: Name: Title: Special Counsel Palm Plaza Purchase & Sale Agreement v2 Page 30 of 30 329 of 498 Attachment No. 4 EXHIBIT "A" TO REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS Property Legal Description The land referred to herein is situated in the State of California, County of San Diego and described as follows: Parcel 1 of Parcel Map No. 13257 in the City of National City, filed in the Office of the County Recorder of San Diego County, May 8, 1894 as File No. 84-170925 of Official Records. APN: 557-410-20 EXHIBIT A 330 of 498 Attachment No. 4 EXHIBIT "B" TO REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS Grant Deed [behind this page] EXHIBIT B 331 of 498 Attachment No. 4 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of National City 1243 National City Boulevard National City, California 91950 Attn: City Manager MAIL TAX STATEMENTS TO: PALM PLAZA ASSOCIATES, LLC, a California limited liability company Attn: Juan -Pablo Mariscal 3790 Via de la Valle, Suite 311 Del Mar, California 92014 SPACE ABOVE THIS LINE FOR RECORDER'S USE Assessor's Parcel No. 557-410-20 OFFICIAL BUSINESS Document Exempt from Recording Fees Per Government Code §§ 6103 & 27383 DOCUMENTARY TRANSFER TAX $ Computed on the consideration or value of property conveyed; OR Computed on the consideration or value of property conveyed less liens or encumbrances remaining at time of sale. Signature of Declarant or Agent determining tax GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the CITY OF NATIONAL CITY, a California municipal corporation, herein called "Grantor", hereby grants to PALM PLAZA ASSOCIATES, LLC, a California limited liability company, herein called "Grantee", all right, title and interest of Grantor in that certain real property in the City of National City, County of San Diego, State of California, specifically described in Exhibit "A" attached hereto ("Property") and incorporated herein by this reference, subject to the existing easements, restrictions and covenants of record and consistent with the obligations of the Grantee under the Purchase Agreement (defined below). Whenever the term "Grantee" is used in this Grant Deed, such term shall include any and all successors, assigns, and heirs of Grantee in and to the Property, or any interest therein or any portion thereof. Palm Plaza City Grant Deed v l 332 of 498 Attachment No. 4 1. Conveyance in Accordance With Purchase Agreement. The Property is conveyed pursuant to that certain Real Property Purchase and Sale Agreement and Joint Escrow Instructions dated , 20_ and entered into by and between Grantor ("Seller" therein) and Grantee ("Buyer" therein) ("Purchase Agreement"), a copy of which is on file in the offices of the City Clerk of Grantor as a public record and which is incorporated herein by reference. Purchase Agreement as used herein shall mean, refer to and include the Purchase Agreement, as well as any riders, exhibits, addenda, implementation agreements, amendments, modifications, supplements and attachments thereto or other documents expressly incorporated by reference in the Purchase Agreement. Any capitalized term not herein defined shall have the same meaning ascribed to such term in the Purchase Agreement. All of the terms, covenants and conditions of this Grant Deed shall be binding upon the Grantee and the permitted successors and assigns of the Grantee. 2. Nondiscrimination. The Grantee herein covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Grantee itself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees of the Property. The foregoing covenants shall run with the land. All deeds, leases or contracts made relative to the Property, improvements thereon, or any part thereof, shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (a) (1) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." (2) Notwithstanding paragraph (1), with respect to familial status, paragraph (1) shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in paragraph (1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code Palm Plaza City Grant Deed v l 333 of 498 Attachment No. 4 and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall also apply to the above paragraph. (b) (1) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." (2) Notwithstanding paragraph (1), with respect to familial status, paragraph (1) shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in paragraph (1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the above paragraph. (c) In contracts: "There shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the grantee or transferee itself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees of the Property." 3. Violations Do Not Impair Liens. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Grant Deed shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest made in good faith and for value as to the Property, whether or not said mortgage or deed of trust is subordinated to this Grant Deed; provided, however, that any subsequent owner of the Property, or any interest therein or any portion thereof, shall be bound by such remaining covenants, conditions, restrictions, limitations and provisions, whether such owner's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. 4. Covenants Run With Land. All covenants contained in this Grant Deed shall be covenants running with the land. All of the Grantee's obligations and covenants hereunder shall remain in effect in perpetuity. Palm Plaza City Grant Deed v l 334 of 498 Attachment No. 4 5. Covenants For Benefit of Grantor. All covenants without regard to technical classification or designation, legal or otherwise, shall be, to the fullest extent permitted by law and equity, binding for the benefit of the Grantor and its successors and assigns, and such covenants shall run in favor of, and be enforceable by, the Grantor and its successors and assigns, against Grantee, its successors and assigns, to or of the Property conveyed herein or any portion thereof or any interest therein, and any party in possession or occupancy of the Property or portion thereof, for the entire period during which such covenants shall be in force and effect, without regard to whether the Grantor is or remains an owner of any land or interest therein to which such covenants relate. The Grantor and its successors and assigns, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at law or suits in equity or other proper proceedings to enforce the curing of such breach. [Signatures On Next Page] Palm Plaza City Grant Deed v l 335 of 498 Attachment No. 4 IN WITNESS WHEREOF, Grantor and Grantee have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized this day of ,2016. "GRANTOR" "SELLER" CITY OF NATIONAL CITY, a California municipal corporation By: Name: Title: City Manager ATTEST: By: Name: Title: City Clerk APPROVED AS TO FORM: By: Name: Claudia Gacitua Silva Title: City Attorney [Signatures Continue On Next Page] Page 5 of 6 Palm Plaza City Grant Deed v 1 336 of 498 Attachment No. 4 CERTIFICATE OF ACCEPTANCE OF GRANT DEED This is to certify that the interest in real property conveyed by the CITY OF NATIONAL CITY to PALM PLAZA ASSOCIATES, LLC, a California limited liability company, is hereby accepted by the undersigned officer on behalf of Grantee, through his or her signature below, subject to all of the matters hereinbefore set forth, and Grantee consents to recordation thereof by its duly authorized officer. "GRANTEE" *see notes below PALM PLAZA ASSOCIATES, LLC, a California limited liability company Dated: By: Name: Title: Dated: By: Name: Title: *Notes: This document must be executed by the Corporation's Chief Executive Officer, President or Vice -President, on the one hand, and the Corporations' Chief Financial Officer, Treasurer, Assistant Treasurer or Secretary on the other hand. Page 6 of 6 Palm Plaza City Grant Deed v 1 337 of 498 Attachment No. 4 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. STATE OF CALIFORNIA ) SS. COUNTY OF SAN DIEGO On , before me, 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) Description of Attached Document Title or Type of Documents: Number of Pages: OPTIONAL Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed By Signer(s) Signer's Name: o Corporate Officer — Title(s): o Partner - o Limited o General o Individual o Attorney in Fact o Trustee o Guardian or Conservator o Other: Signer is Representing: Signer's Name: o Corporate Officer — Title(s): o Partner - o Limited o General o Individual o Attorney in Fact o Trustee o Guardian or Conservator o Other: Signer is Representing: 338 of 498 Attachment No. 4 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. STATE OF CALIFORNIA ) SS. COUNTY OF SAN DIEGO On , before me, 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) Description of Attached Document Title or Type of Documents: Number of Pages: OPTIONAL Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed By Signer(s) Signer's Name: o Corporate Officer — Title(s): ❑ Partner - ❑ Limited o General ❑ Individual o Attorney in Fact ❑ Trustee o Guardian or Conservator o Other: Signer is Representing: Signer's Name: o Corporate Officer — Title(s): o Partner - o Limited o General o Individual o Attorney in Fact o Trustee o Guardian or Conservator o Other: Signer is Representing: 339 of 498 Attachment No. 4 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. STATE OF CALIFORNIA ) SS. COUNTY OF SAN DIEGO On , before me, 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) Description of Attached Document Title or Type of Documents: Number of Pages: OPTIONAL Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed By Signer(s) Signer's Name: o Corporate Officer — Title(s): o Partner - o Limited o General o Individual o Attorney in Fact o Trustee o Guardian or Conservator o Other: Signer is Representing: Signer's Name: o Corporate Officer — Title(s): o Partner - o Limited o General o Individual o Attorney in Fact o Trustee o Guardian or Conservator o Other: Signer is Representing: 340 of 498 Attachment No. 4 EXHIBIT "A" LEGAL DESCRIPTION The land referred to herein is situated in the State of California, County of San Diego and described as follows: Parcel 1 of Parcel Map No. 13257 in the City of National City, filed in the Office of the County Recorder of San Diego County, May 8, 1894 as File No. 84-170925 of Official Records. APN: 557-410-20 Exhibit A 341 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 342 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City accepting the findings made in the Summary Report pursuant to California General Code Section 52201 pertaining to the sale of a 1.07-acre parcel of vacant land located at 1640 East Plaza Blvd. in 342 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City accepting the findings made in the Summary Report pursuant to California General Code Section 52201 pertaining to the sale of a 1.07-acre parcel of vacant land located at 1640 East Plaza Blvd. in National City to Palm Plaza Associates, LLC and approving a Real Property Purchase and Sale Agreement and Joint Escrow Instructions for said vacant land. PREPARED BY: Carlos Aguirre, Community Dev. Mgr.CA94---DEPARTMENT Housing and Economic PHONE: (619) 336-4391 APPROVE EXPLANATION: See Attachment No. 1 FINANCIAL STATEMENT: ACCOUNT NO. APPROVED:�_�- APPROVED: Finance MIS Subject to the execution of a Compensation Agreement with the Affected Taxing Entities (ATEs), net proceeds from the sale of the property will be distributed among the ATEs as required by Health and Safety Code Section 34188. The City will receive 18% of net proceeds from the distribution. ENVIRONMENTAL REVIEW: Approval of the property transfer is not a "Project" under section 15378 of the California Environmental Quality Act ("CEQA") guidelines because the proposed action consists of administrative activity that will not result in direct or indirect physical changes to the environment and, as such, pursuant to section 15061(b)(5) of the CEQA Guidelines is not subject to CEQA; and, the underlying project is exempt from CEQA for two reasons: 1) it requires only ministerial approval by the City (Public Resources Code section 21080(b)(1) and Guidelines 15268), and 2) it is an urban infill project (Guidelines section 15332). ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Background Report 2. Public Notice 3. Summary Report 4. Purchase and Sale Agreement 5. Resolution 343 of 498 Attachment No. 1 Explanation and Background Report Public Hearing The purpose of the public hearing is to allow the City Council and the public the opportunity to review and comment on the essential terms of a proposed Real Property Purchase and Sale Agreement and Escrow Instructions for the sale and conveyance of certain real property ("Property") located in the City of National City, California, with a street address of 1640 E. Plaza Blvd, (APN # 557-410-20), from the City of National City to Palm Plaza Associates, LLC pursuant to a Real Property Purchase and Sale Agreement and Joint Escrow Instructions ("Agreement"). The Agreement is included as Attachment No. 4 of this staff report. Section 52201 Summary Report A Summary Report was prepared in accordance with Section 52201 of the California Government Code in order to inform the City Council and the public about the proposed Real Property Purchase and Sale Agreement and Joint Escrow Instructions between the City of National City ("Seller") and Palm Plaza Associates, LLC ("Buyer"). The report outlines the potential costs of the sale, the estimated value of the interest in the property to be sold, and the economic opportunities resulting from the transaction. The report is included as Attachment No. 3 of this staff report. Property History The Property was once the site of a 70-unit Day's Inn hotel that was built in 1986 and closed approximately 16 years ago leaving a blighted and abandoned building. Under a put -option agreement with the Community Development Commission of the City of National City ("CDC"), National City Hotels acquired the Property in 2004 from Rex Investments for $3,775,000 with the intent to develop commercial space and residential units by gaining the appropriate entitlements with assistance from the CDC. When National City Hotels was unable to obtain the entitlements needed and acquire the adjacent vacant property, they exercised the put -option agreement with the CDC. The Property was purchased by the CDC for $4,394,343 in October 2005. The sales price was based on the value of an operable hotel and as part of the purchase, National City Hotels demolished the building leaving the Property vacant upon purchase. The Property was appraised by the CDC in 2006, after the demolition of the structure on the Property. The appraisal valued the land at $2,135,000. However, later in 2006 the appraisal was revised to reflect a value of $1,823,000 after the appraiser had the opportunity to review preliminary title reports and a parcel map with plotted easements. The CDC entered an Exclusive Negotiating Agreement (ENA) with the Acevedo Group in January 2006. The ENA was assigned to Palm Plaza Associates, LLC (PPA) in June 2006. Since entering the ENA, PPA has owned a 1.144 acre parcel of land contiguous to the Property. A Purchase and Sale Agreement between Palm Plaza Associates, LLC and the CDC was contemplated since November 2009 for a sale amount of $1,823,000 for the purpose on developing 72 for -sale residential units. However, the quick downturn in the economy impacted the value of the Property and feasibility of development. The Property was reappraised in January 2011 and valued at $690,000. In the spring of 344 of 498 Attachment No. 1 2011, PPA and the CDC renegotiated the price and terms for the purchase and sale of the Property reflecting the appraised value of $690,000. However, the CDC and PPA were unable to consummate a Purchase and Sale Agreement due to the impending dissolution of the CDC by the State of California that prohibited entering into property disposition agreements at the time. The Successor Agency to the Community Development Commission as the National City Redevelopment Agency ("Successor Agency") indicated future development of the the Property in the Revised Long Range Property Management Plan (Revised LRPMP) The Revised LRPMP was approved in December 2015 by the State of California Department of Finance. The Property was appraised in February 2016 for a value of $870,000. In accordance with the Revised LRPMP, the Property was transferred to the City for future development in May 2016 from the Successor Agency. Negotiations with PPA continued from where they had left off in 2011 and PPA has agreed to purchase the property at the appraised value of $870,000 for the future development of approximately 72 multi -family housing units. Public Notice Process Notice of the public hearing was published in the San Diego Union Tribune on August 1, 2016 and August 8, 2016, as well as through the regular agenda notification process. The Public Notice is included as Attachment No. 2 of this staff report. 345 of 498 Attachment No. 2 LEGAL NOTICE PUBLIC MEETING ACTIONS RELATING TO THE TRANSFER OF REAL PROPERTY IN THE CITY OF NATIONAL CITY TO PALM PLAZA ASSOCIATES, LLC PURSUANT TO A REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS NOTICE IS HEREBY GIVEN that the CITY OF NATIONAL CITY will hold a public meeting on Tuesday, August 16, 2016, at 6:00 p.m. or soon thereafter, at City of National City, City Hall Council Chambers, located at 1243 National City Boulevard, National City, CA 91950. The public meeting is being conducted in accordance with California General Code Section 52201. The public meeting may be continued from time to time until completed. The public meeting may also be cancelled or set for another time in the future at any time until the scheduled meeting time. The purpose of this public meeting is to discuss and consider the following items: • The sale and conveyance of certain real property located in the City of National City, California, with a street address of 1640 E. Plaza Blvd, (APN # 557-410-20), from the City of National City to Palm Plaza Associates, LLC pursuant to a Real Property Purchase and Sale Agreement and Joint Escrow Instructions. Any and all persons who wish to speak on any issue related to any of the item to be discussed at the public meeting as listed above may appear at the public meeting and will be afforded an opportunity to speak. Further information regarding the item to be discussed at the public meeting as listed above or this public meeting may be obtained by contacting Gregory Rose, at (619) 336-4266. Copies of the Purchase and Sales Agreement and Economic Report are available at the office of the City Clerk (1243 National City Boulevard, National City, CA 91950). 346 of 498 Attachment No. 3 NATIONAL CITY REDEVELOPMENT PROJECT NATIONAL CITY, CALIFORNIA SUMMARY REPORT PERTAINING TO THE PROPOSED SALE OF CERTAIN REAL PROPERTY WITHIN THE NATIONAL CITY REDEVELOPMENT PROJECT AREA California Government Code Section 52201 PURSUANT TO THE PROPOSED REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS between THE CITY OF NATIONAL CITY and PALM PLAZA ASSOCIATES, LLC National City, California August 2016 347 of 498 Attachment No. 3 TABLE OF CONTENTS Page I. Introduction 1 II. Costs of the Agreement to the City 4 III. Estimated Value of the Interest to be Conveyed at the Highest and Best Use Permitted Under the General Plan and Zoning Code 5 IV. Estimated Value of the Interest to be Conveyed at the Use and with the Conditions, Covenants, and Development Costs Required by the Agreement 6 V. Compensation which the Buyer will be Required to Pay 7 VI. Explanation of the Difference, if any, between the Compensation to be Paid to the City by the Proposed Transaction and the Fair Market Value of the Interest to be Conveyed at the Highest and Best Use Consistent with the General Plan and Zoning Code 8 VII. Explanation of why the Sale of the Property will Contribute to Economic Opportunity 9 VIII. Limiting Conditions 10 348 of 498 Attachment No. 3 I. INTRODUCTION A. Purpose of Report This Summary Report was prepared in accordance with Section 52201 of the California Government Code in order to inform the City of National City (Seller) and the public about the proposed Real Property Purchase and Sale Agreement and Joint Escrow Instructions (Agreement) between the Seller and Palm Plaza Associates, LLC (Buyer). This Report and attached tables describe the transaction between the Seller and the Buyer. This Report specifies: 1. The costs to be incurred by the Seller under the Agreement; 2. The estimated value of the interest to be conveyed at the highest and best use permitted under the General Plan and Zoning Code; 3. The estimated value of the interest to be conveyed at the proposed use and with the conditions, covenants, and development costs required by the Agreement; 4. The compensation to be paid to the Seller pursuant to the proposed transaction; 5. An explanation of the difference, if any, between the compensation to be paid to the Seller under the proposed transaction, and the fair market value at the highest and best use consistent with the General Plan and Zoning Code; and 6. An explanation of why the Agreement will assist in the creation of economic opportunity. B. Summary of Findings The Seller engaged its economic consultant, Keyser Marston Associates, Inc. (KMA), to analyze the proposed financial terms. The principal KMA conclusions are summarized as follows: • The estimated costs of the Agreement to the Seller total $4,350,000. • The estimated fair market value of the Property at its highest and best use is $870,000. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 1 349 of 498 Attachment No. 3 • The estimated re -use value of the interest to be conveyed is $870,000. • The value of the compensation to be received by the Seller is $870,000. C. Description of Property and Proposed Development The Property is located within the former National City Redevelopment Project Area (Project Area). Prior to the Statewide dissolution of redevelopment in 2012, the former Project Area encompassed approximately 2,000 acres of land area. The goals of the Redevelopment Plan (Plan) were to retain businesses and jobs in the area, create and improve public facilities in the area, and improve the supply of affordable, quality housing. Since the adoption of the Plan, numerous redevelopment ventures were carried out by the City's former redevelopment agency in partnership with private developer and non-profit partners. The Property is a 1.07-acre parcel located at 1640 East Plaza Boulevard in National City. It was originally acquired by the Community Development Commission for redevelopment purposes. Following the dissolution of redevelopment, the Property was transferred to the Successor Agency to the Community Development Commission as the National City Redevelopment Agency pursuant to Health and Safety Code Section 34172. Following State approval of the City's Long Range Property Management Plan (LRPMP), the Property was transferred from the Successor Agency to the City. The Property is situated on the south side of Plaza Boulevard, east of Palm Avenue, and west of Interstate 805. The Property has an approximate 25-foot slope within the southwest corner of the parcel. The Buyer intends to combine the Property with a 1.14-acre Buyer -owned parcel at 1300 Palm Avenue, for a total combined development site of 2.21 acres. The Buyer plans to develop a 72-unit multi -family residential condominium development (Project) on the combined parcels. D. Proposed Transaction Terms This section summarizes the salient aspects of the proposed Agreement between the Seller and the Buyer. • The Seller will convey the Property to the Buyer for $870,000. • The Buyer will accept the Property in an "as is" condition. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 2 350 of 498 Attachment No. 3 • The Buyer will construct 72 multi -family residential condominiums on the 2.21-acre site comprised of the Property and the Buyer's adjoining parcel. The Buyer will be responsible for the development, construction, and installation of all landscaping, parking, and all other required on- and off -site private and public improvements associated with the Project. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 3 351 of 498 Attachment No. 3 II. COSTS OF THE AGREEMENT TO THE SELLER The estimated costs of the Agreement to the Seller total $4,350,000, and include the following items: Seller Costs Amount Property Acquisition $3,775,000 Third Party and Other Costs (1) $575,000 Total Seller Costs $4,350,000 The Property acquisition cost, and other maintenance and holding costs, were incurred by the Community Development Commission in its capacity as the City's former Redevelopment Agency. (1) Per Seller, includes maintenance/holding costs, appraisals, escrow costs, fees paid to the previous property owner, franchise fees, inspection reports, other third party soft costs, and estimated budget for legal and economic consultants. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 4 352 of 498 Attachment No. 3 III. ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED AT THE HIGHEST AND BEST USE PERMITTED UNDER THE GENERAL PLAN AND ZONING CODE This section presents an analysis of the fair market value of the Property at its highest and best use. In appraisal terminology, the highest and best use is that use of the Property that generates the highest property value and is physically possible, financially feasible, and legally permitted. Therefore, value at highest and best use is based solely on the value created and not on whether or not that use carries out the revitalization goals and policies for the City of National City. According to the City's General Plan and Zoning Code, the Property is located within the Major Mixed -Use District (MXD-2). This zone allows for a Floor Area Ratio (FAR) of 3.5 for mixed -uses and 3.0 for single -uses. Residential density up to 75 units per acre is also allowed. The Seller contracted with Hilco Real Estate Appraisal, LLC (Hilco) for an appraisal of the Property. The appraisal estimated the current market value of the subject Property as of January 25, 2016. Hilco concluded the fee simple market value of the Property, as vacant, to be $870,000. This land value translates to $19 per SF of site area. KMA conducted an independent review of residential land sales of multi -family residential development sites in National City and surrounding communities from January 2014 to the present. As shown in Table 1, surveyed land sales ranged from $9 to $60 per SF of land, with median and average prices of $20 and $25 per SF, respectively. Most sales were concentrated between $14 and $27 per SF. The comparable sales vary by city, site condition, status of entitlements, and prevailing market conditions at time of sale. Notably, the Property is centrally located within the South Bay, on a major commercial artery (Plaza Boulevard), in close proximity to Interstate 805. On the other hand, the steep sloped southwestern portion of the parcel reduces the useability of the Property. In view of these factors, KMA finds that the value of the Property falls slightly below the median/average prices for the surveyed comparable land sales, or say $19 per SF. In sum, KMA concurs with the appraised value for the Property at $19 per SF of site area. On this basis, then, the KMA analysis concludes that the fair market value of the Property at its highest and best use is $870,000. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 5 353 of 498 Attachment No. 3 IV. ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED AT THE USE AND WITH THE CONDITIONS, COVENANTS, AND DEVELOPMENT COSTS REQUIRED BY THE AGREEMENT This section explains the principal conditions and covenants which the Buyer of the Property must meet in order to comply with the Agreement. Re -use value is defined as the highest price in terms of cash or its equivalent which a property or development right is expected to bring for a specified use in a competitive open market, subject to the covenants, conditions, and restrictions imposed by the Agreement. Since there are no extraordinary covenants, conditions, or restrictions stipulated in the Agreement, KMA concludes that the fair re -use of the Property is equal to its fair market value at highest and best use, or $870,000. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 6 354 of 498 Attachment No. 3 V. COMPENSATION WHICH THE BUYER WILL BE REQUIRED TO PAY The value of the compensation to be received by the Seller for the Property under the terms of the Agreement is $870,000. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 7 355 of 498 Attachment No. 3 VI. EXPLANATION OF THE DIFFERENCE, IF ANY, BETWEEN THE COMPENSATION TO BE PAID TO THE SELLER BY THE PROPOSED TRANSACTION AND THE FAIR MARKET VALUE OF THE INTEREST TO BE CONVEYED AT THE HIGHEST AND BEST USE CONSISTENT WITH THE GENERAL PLAN AND ZONING CODE The fair market value of the interest to be conveyed at its highest and best use is $870,000. The value of the compensation to be received by the Seller is $870,000. The compensation to be paid to the Seller is equal to the fair market value of the interest to be conveyed at its highest and best use. Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 8 356 of 498 Attachment No. 3 VII. EXPLANATION OF WHY THE SALE OF THE PROPERTY WILL CONTRIBUTE TO ECONOMIC OPPORTUNITY Implementation of the proposed Agreement will contribute to economic opportunity in the immediate vicinity and the City as a whole. Specifically, development of the Project is anticipated to: • Utilize a long -vacant property • Generate both construction and ongoing employment • Increase building fees, property taxes, and other revenues to the City • Catalyze further development in the vicinity of the Project Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 9 357 of 498 Attachment No. 3 VIII. LIMITING CONDITIONS The estimates of re -use and fair market value at the highest and best use contained in this Summary Report assume compliance with the following assumptions: 1. There are no known soil or subsoil problems, including toxic or hazardous conditions on the Property that need to be remediated in order to develop the Property. 2. The ultimate development will not vary significantly from that assumed in this Summary Report. 3. The title of the property is good and marketable; no title search has been made, nor have we attempted to determine the ownership of the property. The value estimates are given without regard to any questions of title, boundaries, encumbrances, liens or encroachments. It is assumed that all assessments, if any are paid. 4. The Property will be in conformance with the applicable zoning and building ordinances. 5. Information provided by such local sources as governmental agencies, financial institutions, realtors, buyers, sellers, and others was considered in light of its source, and checked by secondary means. 6. If an unforeseen change occurs in the economy, the conclusions herein may no longer be valid. 7. The development will adhere to the schedule of performance described in the Agreement. 8. Both parties are well informed and well advised and each is acting prudently in what he/she considers his/her own best interest. attachment Summary Report Palm Plaza 16062ndh 16104.010.001 Keyser Marston Associates, Inc. Page 10 358 of 498 Attachment No. 3 TABLE 1 MULTI -FAMILY RESIDENTIAL LAND SALES COMPARABLES, JANUARY 2014 TO PRESENT (1) PALM PLAZA CITY OF NATIONAL CITY # of Density Sale Date Address City Sale Price Acres $/SF Units (DU/AC) $/Unit 08/13/15 1105 National City Boulevard National City $3,500,000 1.33 $60 166 125 $21,084 06/06/14 222 Church Avenue Chula Vista $450,000 0.24 $43 15 63 $30,000 05/09/14 172 4th Avenue Chula Vista $200,000 0.17 $27 4 (2) 26 $45,915 05/31/16 701 D St Chula Vista $4,700,000 4.35 $25 72 (2) 17 $65,278 03/12/14 1455 Sheryl Lane National City $1,750,000 1.89 $21 70 (2) 37 $25,000 10/02/15 2501 E 18th Street National City $270,000 0.34 $18 14 (2) 41 $19,286 02/03/16 Santa Carolina Rd Chula Vista $4,000,000 5.18 $18 96 19 $41,667 09/15/15 2604 Ridgeway Dr National City $1,350,000 2.23 $14 53 24 $25,472 04/02/15 35th St @ J Street San Diego $450,000 0.92 $11 18 20 $25,000 04/10/14 Smythe Avenue San Diego $465,000 1.25 $9 50 40 $9,300 Minimum $200,000 0.17 $9 4 17 $9,300 Maximum $4,700,000 5.18 $60 166 125 $65,278 Median $907,500 1.29 $20 52 31 $25,236 Average $1,713,500 1.79 $25 56 41 $30,800 (1) Selected sales transactions for residential land in the South Bay area. (2) KMA estimate based on Internet research and maximum allowable density as stated in each city's municipal code. 359 of 498 Attachment No. 4 REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS 1640 East Plaza Blvd., National City, CA (APN # 557-410-20) This REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS ("Agreement") is dated as of , 2016, and is entered into by and between the CITY OF NATIONAL CITY, a California municipal corporation ("City" or "Seller"), and PALM PLAZA ASSOCIATES, LLC, a California limited liability company ("Buyer"). Seller and Buyer enter into this Agreement with reference to the following recitals of fact (each, a "Recital"): RECITALS A. The Community Development Commission as the National City Redevelopment Agency ("Redevelopment Agency") owned that certain real property generally located at 1640 East Plaza Blvd. (Assessor's Parcel No. 557-410-20) within the City of National City, County of San Diego, State of California, as specifically described in Section 1 of this Agreement as the "Property"; and B. Pursuant to California Health and Safety Code Section 34172, the Redevelopment Agency was dissolved by operation of law as of February 1, 2012, and pursuant to California Health and Safety Code Section 34173, Successor Agency to the Community Development Commission as the National City Redevelopment Agency ("Successor Agency") became the successor agency and successor -in -interest to the Redevelopment Agency, confirmed by Resolution No. 2012-15 adopted on January 10, 2012, by the City Council of the City; an.d C. In accordance with California Health and Safety Code Section 34191.5, the Property was listed on Successor Agency's Long Range Property Management Plan ("LRPMP"), which provides that the Property will be transferred to and retained by the City for fixture development, and the LRPMP has been approved by the Oversight Board of the Successor Agency to the Community Development Commission as the National City Redevelopment Agency ("Oversight Board") and the California Department of Finance; and D. At its regular meeting on May 17, 2016, the City of National City met and pursuant to Resolution No. 2016-70 accepted the transfer of the Property, among other properties, from the Successor Agency to the City in accordance with the LRPMP; and E. At its regular meeting on May 17, 2016, the Successor Agency met and pursuant to Resolution No. 2016-77 approved the transfer of the Property, among other properties, from the Successor Agency to the City in accordance with the LRPMP; and Palm Plaza Purchase & Sale Agreement v2 Page 1 of 30 360 of 498 Attachment No. 4 F: At its regular meeting on May 18, 2016, the Oversight Board met and pursuant to Resolution No. 2016-04 approved and directed the transfer of the Property, among other properties, from the Successor Agency to the City in accordance with the LRPMP; and G. The Successor Agency has transferred (or will transfer prior to or concurrently with the Close of Escrow) the Property to the City; and H. Buyer has made an offer to purchase the Property from Seller at the Property's current fair market value, and Seller desires to sell the Property to Buyer pursuant to the terms and conditions of this Agreement. AGREEMENT NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES AND COVENANTS OF SELLER AND BUYER SET FORTH IN THIS AGREEMENT AND OTHER GOOD AND VALUABLE CONSIDERATION, SELLER AND BUYER AGREE, AS FOLLOWS: TERMS AND CONDITIONS 1. DEFINMONS 1.1 Definitions. The following words, terms and phrases are used in this Agreement with the following meanings, unless the particular context or usage of a word, term or phrase requires another interpretation: 1.1.1 Affiliate. (1) any Person directly or indirectly controlling, controlled by or under common control with another Person; (2) any Person owning or controlling ten percent (10%) or more of the outstanding voting securities of such other Person; or (3) if that other Person is an officer, director, member or partner, any company for which such Person acts in any such capacity. The term "control" as used in the immediately preceding sentence, means the power to direct the management or the power to control election of the board of directors. It shall be a presumption that control with respect to a corporation or limited liability company is the right to exercise or control, directly or indirectly, more than fifty percent (50%) of the voting rights attributable to the controlled corporation or limited liability company, and, with respect to any individual, partnership, trust, other entity or association, control is the possession, indirectly or directly, of the power to direct or cause the direction of the management or policies of the controlled entity. It shall also be a presumption that the manager of a limited liability company controls such limited liability company. 1.1.2 Agreement. This Real Property Purchase and Sale Agreement and Joint Escrow Instructions by and between Seller and Buyer, including all of the attached Exhibits. 1.1.3 Approval. Any approval, consent, certificate, ruling, authorization, or amendment to any of the foregoing, as shall be necessary or appropriate under any Law to complete the purchase and sale of the Property. Palm Plaza Purchase & Sale Agreement v2 Page 2 of 30 361 of 498 Attachment No. 4 1.1.4 Bankruptcy Law. Title 11 of the United State Code or any other or successor State or Federal statute relating to assignment for the benefit ofcreditors, reditors, appointment of a receiver or trustee, bankruptcy, composition, insolvency, moratorium, reorganization, or similar matters. 1.1.5 Bankruptcy Proceeding. Any proceeding, whether voluntary or involuntary, under any Bankruptcy Law. 1.1.6 Business Day. Any weekday on which the Seller is open to conduct regular governmental functions. 1.1.7 Buyer. Palm Plaza Associates, LLC, a California limited liability company, and any permitted assignee of or successor to the rights, powers, or responsibilities of Buyer under this Agreement. 1.1.8 Buyer Title Policy. A standard CLTA owners' policy of title insurance issued by the Title Company, with coverage in the amount of the Purchase Price, showing title to the Property vested in Buyer, subject to Permitted Exceptions. 1.1.9 CEQA. The California Environmental Quality Act, Public Resources Code Section 21000, et seq. and implementing regulations contained in Title 14, Chapter 3, Section 15000, et seq. of the California Code ofRegulations. 1.1.10 CEQA Documents. Any exemption determination, any Negative Declaration (mitigated or otherwise) or any Environmental Impact Report (including any addendum or amendment to, or subsequent or supplemental Environmental Impact Report) required or permitted by any Government, pursuant to CEQA, to issue any discretionary Approval required to approve this Agreement. 1.1.11 City or Seller. The City of National City, a California municipal corporation, and any permitted assignee of or successor to the rights, powers, or responsibilities of Seller under this Agreement. in function. 1.1.12 City Manager. The City Manager of Seller or his or her designee or successor 1.1.13 Claim. Any claim, loss, cost, damage, expense, liability, lien, action, cause of action (whether in tort, contract, under statute, at law, in equity or otherwise), charge, award, assessment, fine or penalty of any kind (including consultant and expert fees and expenses and investigation costs of whatever kind or nature and, if an Indemnitor improperly fails to provide a defense for an Indemnitee, then Legal Costs of the Indemnitee) and any judgment. 1.1.14 Close of Escrow. The first date on which the Escrow Agent has filed the Grant Deed with the County for recording in the official records of the County. 1.1.15 Control. Possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether by ownership or Equity Palm Plaza Purchase & Sale Agreement V2 Page 3 of 30 362 of 498 Attachment No. 4 Interests, by contract or otherwise. 1.1.16 County. The County of San Diego, California. 1.1.17 Default. An Escrow Default, a Monetary Default, or a Non -Monetary 1.1.18 Default Interest. Interest at an annual rate equal to the lesser of (a) eight percent (8%) per annum; or (b) the Usury Limit. 1.1.19 Deposit. Twenty Thousand and No/100 Dollars ($20,000). Default. 1.1.20 Due Diligence Materials. All of the following: (a) the Preliminary Report; (b) any and all environmental reports relating to the Property in the possession of Seller; and (iii) copies of any and all material documents that pertain to the physical condition of the Property in the possession of Seller. 1.1.21 Due Diligence Period. The period of time commencing upon the Effective Date and expiring ninety (90) days thereafter. 1.1.22 Effective Date. Defined in Section 2 of this Agreement. 1.1.23 Environmental Claim. Any and all claims, demands, damages, losses, liabilities, obligations, penalties, fines, actions, causes of action, judgments, suits, proceedings, costs, disbursements or expenses, including Legal Costs and fees and costs of environmental consultants and other experts, and all foreseeable and unforeseeable damages or costs of any kind or of any nature whatsoever, directly or indirectly, relating to or arising from any actual or alleged violation of any Environmental Law or Hazardous Substance Discharge. 1.1.22 Environmental Laws. All Federal, StttP, local (including City) laws, rules, orders, regulations, statutes, ordinances, codes, decrees, or requirements of any Government authority, now in effect or enacted after the Effective Date of this Agreement, regulating, relating to, or imposing liability or standards of conduct concerning any Hazardous Substance, the regulation or protection of the environment, including ambient air, soil, soil vapor, groundwater, surface water, or land use or pertaining to occupational health or industrial hygiene or occupational or environmental conditions on, under or about the Property, as now or may at any later time be in effect, including the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA") [42 U.S.C. § 9601 etseq.]; the Resource Conservation and Recovery Act of 1976 ("RCRA") [42 U.S.C. § 6901 et seq.]; the Clean Water Act, also known as the Federal Water Pollution Control Act ("FWPCA") [33 U.S.C. § 1251 et seq.]; the Toxic Substances Control Act ("TSCA") [15 U.S.C. § 2601 et seq.]; the Hazardous Materials Transportation Act ("I1MTA") [49 U.S.C. § 1801 et seq.]; the Insecticide, Fungicide, Rodenticide Act [7 U.S.C. § 6901 et seq.]; the Clean Air Act [42 U. S.C. § 7401 et seq.]; the Safe Drinking Water Act [42 U.S.C. § 300f et seq.]; the Solid Waste Disposal Act [42 U.S.C. § 6901 et seq.]; the Surface Mining Control and Reclamation Act [30 U.S.C. § 101 et seq.]; the Emergency Planning and Community Right to Know Act [42 U.S.C. § 11001 et seq.]; the Occupational Safety and Health Act [29 U.S.C. §§ 655 and 657]; the California Underground Storage of Hazardous Substances Act [California Health and Safety Code § 25300 et seq.]; the California Safe Drinking Water and Toxic Enforcement Act [California Health and Safety Code Palm Plaza Purchase & Sale Agreement v2 Page 4 of 30 363 of 498 Attachment No. 4 § 242495 et seq.]; or the Porter -Cologne Water Quality Act [California Water Code § 13000 et seq.]; together with any regulations promulgated under the authorities referenced in this Section. 1.1.23 Equity Interest. All or any part of any direct equity or ownership interest(s) (whether stock, partnership interest, beneficial interest in a trust, membership interest in a limited liability company, or other interest of an ownership or equity nature) in any entity, at any tier of ownership, that directly owns or holds any ownership or equity interest in a Person. 1.124 Escrow. An escrow, as defined in California Civil Code Section 1057 and California Financial Code Section 17003(a), that is conducted by the Escrow Agent with respect to the sale of the Property from Seller to Buyer pursuant to this Agreement. 1.1.25 Escrow Agent. Carla Burchard, Stewart Title of California, Inc., or such other Person mutually agreed upon in writing by both Seller and Buyer. 1.1.26 Escrow Closing Date. Subject to the immediately following paragraph and subject to satisfaction (or waiver by the benefitted Party or Parties) of all of the conditions to closing set forth in Sections 4.4 and 4.5, unless extended by the Parties as set forth in Section 4.9 below, the Escrow Closing Date shall occur on or before one hundred eighty (180) days following the Effective Date. In the event the condition set forth in Section 4.5.1 below has not been satisfied in time for the Close of Escrow to occur on or before one hundred eighty (180) days following the Effective Date, the outside Escrow Closing Date provided for in the preceding paragraph shall be extended from one hundred eighty (180) days following the Effective Date to the date that is two (2) weeks after the Parties receive notice that the condition set forth in Section 4.5.1 has been satisfied or June 30, 2017, whichever date is earlier. There shall be no extension permitted of the June 30, 2017 outside Escrow Closing Date. 1.1.27 Escrow Closing Statement. A statement prepared by the Escrow Agent indicating, among other things, the Escrow Agent's estimate of all funds to be deposited or received by Seller or Buyer, respectively, and all charges to be paid by Seller or Buyer, respectively, through the Escrow. 1.1.28 Escrow Default. The unexcused failure of a Party to submit any document or funds to the Escrow Agent as reasonably necessary to close the Escrow, pursuant to the terms and conditions of this Agreement. 1.1.29 Escrow Opening Date. The first date on which a copy of this Agreement, signed by both Seller and Buyer, is deposited with the Escrow Agent, as provided in Section 3.1 of this Agreement. 1.1.30 Event of Default. The occurrence of any one or more of the following: (a) Monetary Default. A Monetary Default that continues for fifteen (15) calendar days after Notice to the Party in Default, specifying in reasonable detail the amount of money not paid and the nature and calculation of each such amount or the bond, surety, or Palm Plaza Purchase & Sale Agreement v2 Page 5 of 30 364 of 498 Attachment No. 4 insurance not provided; (b) Escrow Closing Default. An Escrow Default that continues for seven (7) calendar days after Notice to the Party in Default, specifying in reasonable detail the document or funds not submitted to the Escrow Agent; (c) Band. ptcy or Insolvency. Buyer admits in writing that Buyer is unable to pay Buyer's debts as they become due or Buyer becomes subject to any Bankruptcy Proceeding, or a custodian or trustee is appointed to take possession of or an attachment, execution or other judicial seizure is made with respect to, substantially all of Buyer's assets or Buyer's interest in this Agreement or the Property; (d) Transfer. The occurrence of a Transfer, whether voluntarily of involuntarily or by operation of Law, in violation of the terms or conditions or this Agreement; (e) Non -Monetary Default. Any Non -Monetary Default, other than those specifically addressed in Subsections (c) or (d) above, that is not cured within fifteen (15) calendar days after Notice to the Party in Default describing the Non -Monetary Default in reasonable detail. In the case of such a Non -Monetary Default that cannot with reasonable diligence be cured within fifteen (15) calendar days after the effective date of such Notice, an Event of Default shall occur, if the Party in Default does not do all of the following: (a) within fifteen (15) calendar days after Notice of such Non -Monetary Default, advise the other Party of the intention of the Party in Default to take all reasonable steps to cure such Non -Monetary Default; (b) duly commence such cure within such fifteen (15) calendar day period; and (c) diligently prosecute such cure to completion within a reasonable time under the circumstances. 1.1.31 Federal. The federal government of the United States of America. 1.1.32 FIRPTA Affidavit. A certification that Seller is not a "foreign person" within the meaning of such teen under Section 1445 of the United States Internal Revenue Code. 1.1.33 Form 593. A California Franchise Tax Board Form 593-C. 1.1.34 Government. Any and all courts, boards, agencies, commissions, offices, or authorities of any nature whatsoever of any governmental unit (Federal, State, County, district, municipal, City or otherwise) whether now or later in existence. It is acknowledged that Seller is a form of Government. 1.1.36 Grant Deed. A grant deed conveying Seller's interest in the Property from Seller to Buyer, at the Close of Escrow, substantially in the form of Exhibit "B" attached to this Agreement and incorporated herein by this reference. 1.1.37 Hazardous Substance. Any flammable substance, explosive, radioactive material, asbestos, asbestos -containing material, polychlorinated biphenyl, chemical known to cause cancer or reproductive toxicity, pollutant, contaminant, hazardous waste, medical wastes, toxic substance or related material, petroleum, petroleum product and any Palm Plaza Purchase & Sale Agreement v2 Page 6 of 30 365 of 498 Attachment No. 4 "hazardous" or "toxic" material, substance or waste that is defined by those or similar terms or is regulated as such under any Law, including any material, substance or waste that is: (a) defined as a "hazardous substance" under Section 311 of the Water Pollution Control Act (33 U.S.C. § 1317), as amended; (b) designated as "hazardous substances" pursuant to 33 U.S.C. § 1321; (c) defined as a "hazardous waste" under Section 1004 of the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901 et seq., as amended; (d) defined as a "hazardous substance" or "hazardous waste" under Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Reauthorization Act of 1986, 42 U.S.C. § 9601 et seq., or any so-called "superfund" or "superlien" law, (e) defined as a "pollutant" or "contaminant" under 42 U.S.C. § 9601(33); (f) defined as "hazardous waste" under 40 C.F.R. Part 260; (g) defined as a "hazardous chemical" under 29 C.F.R. Part 1910; (h) any matter within the definition of "hazardous substance" set forth in 15 U.S.C. § 1262; (i) any matter, waste or substance regulated under the Toxic Substances Control Act ("TSCA") [15 U.S.C. Sections 2601 et seq.]; (j) any matter, waste or substance regulated under the Hazardous Materials Transportation Act, 49 U.S.C. Sections 1801 et seq.; (k) those substances listed in the United States Department of Transportation (DOT) Table [49 C.F.R. 172.101]; (1) any matter, waste or substances designated by the EPA, or any successor authority, as a hazardous substance [40 C.F.R. Part 302]; (m) defined as "hazardous waste" in Section 25117 of the California Health and Safety Code; (n) defined as a "hazardous substance" in Section 25316 of the California Health and Safety Code; (o) subject to any other Law regulating, relating to or imposing obligations, liability or standards of conduct concerning protection of human health, plant life, animal life, natural resources, property or the enjoyment of life or property free from the presence in the environment of any solid, liquid, gas, odor or any form of energy from whatever source; or (p) that is or becomes regulated or classified as hazardous or toxic under Law or in the regulations adopted pursuant to Law. 1.1.38 Hazardous Substance Discharge. Any deposit, discharge, generation, release or spill of a Hazardous Substance that occurs at, on, under, into or from the Property, or during transportation of any Hazardous Substance to or from the Property, or that arises at any time from any construction, installation, use or operation or other activities conducted at, on, under or from the Premises, whether or not caused by a Party. 1.1.39 Indemnify. Where this Agreement states that any Indemnitor shall "indemnify" any Indemnitee from, against, or for a particular Claim, that the Indemnitor shall indemnify the Indemnitee and protect, defend and hold the Indemnitee harmless from and against such Claim (alleged or otherwise). "Indemnified" shall have the correlative meaning. 1.1.40 Indemnitee. Any Person entitled to be Indemnified under the terms of this Agreement. 1.1.41 Indemnitor. A Party that agrees to Indemnify any other Person under the terms of this Agreement. 1.1.42 Law. Every law, ordinance, requirement, order, proclamation, directive, rule or regulation of any Government applicable to the Property, in any way, including relating to any development, construction, use, maintenance, taxation, operation, occupancy of or environmental conditions affecting the Property or otherwise relating to this Agreement or any Palm Plaza Purchase & Sale Agreement v2 Page 7 of 30 366 of 498 Attachment No. 4 Party's rights, obligations or remedies under this Agreement, or any Transfer of any of the foregoing, whether in force on the Effective Date or passed, enacted, modified, amended or imposed at some later time, subject in all cases, however, to any applicable waiver, variance or exemption. 1.1.43 Legal Costs. In reference to any Person, all reasonable costs and expenses such Person incurs in any legal proceeding or other matter for which such Person is entitled to be reimbursed for its Legal Costs, including reasonable attorneys' fees, court costs and expenses and consultant and expert witness fees and expenses. of such holder. 1.1.44 Lender. The holder of any Security Instrument and the successors and assigns 1.1.45 Monetary Default. Any failure by either Party to pay or deposit, when and as this Agreement requires, any amount of money, bond, surety or evidence of any insurance coverage required to be provided under this Agreement, whether to or with a Party or a Third Person. 1.1.46 Non -Monetary Default. The occurrence of any of the following, except to the extent constituting a Monetary Default or an Escrow Default: (a) any failure of a Party to perform any of such Party's obligations under this Agreement; (b) any failure of a Party to comply with any material restriction or prohibition in this Agreement; or (c) any other event or circumstance that, with passage of time or giving of Notice, or both, would constitute a breach of this Agreement by a Party. 1.1.47 Notice. Any consent, demand, designation, election, notice, or request relating to this Agreement, including any Notice of Default. All Notices must be in writing. 1.1.48 Notice of Default. Any Notice claiming or giving Notice of a Default. 1.1.49 Notify. To give allotice. 1.1.50 Parties. Collectively, Seller and Buyer. 1.1.51 Party. Individually, either Seller or Buyer, as applicable. 1.1.52 Permitted Exception. All of the following: (a) the printed exceptions and exclusions in the Buyer Title Policy; (b) all items shown in the Preliminary Report as exceptions to coverage under the proposed Buyer Title Policy approved by Buyer, or deemed approved by Buyer, as provided in 3.3.3 below; (c) any lien for non -delinquent property taxes or assessments; (d) any Laws applicable to the Property; (d) this Agreement; (e) any existing improvements on the Property; (f) any Approval; (g) any other document or encumbrance expressly required or allowed to be recorded against the Property pursuant to the terms of this Agreement; and (h) all covenants, conditions, restrictions, reservations, rights, rights of way, easements, encumbrances, liens and other matters of record or that would be disclosed by an accurate inspection or survey of the Property. Palm Plaza Purchase & Sale Agreement v2 Page 8 of 30 367 of 498 Attachment No. 4 1.1.55 Person. Any association, corporation, governmental entity or agency, individual, joint venture, joint-stock company, limited liability company, partnership, trust, unincorporated organization or other entity of any kind. 1.1.56 Preliminary Report. A preliminary report issued by the Title Company in contemplation of the issuance of the Buyer Title Policy, accompanied by the best available copies of all documents listed in the preliminary report as exceptions to coverage under the proposed Buyer Title Policy. 1.1.57 Project. A seventy-two (72) unit multifamily residential condominium project to be developed and constructed on the Property which shall include the development, construction and installation ofall landscaping, parking, and all other required on- and off -site private and public improvements associated with the Project. 1.1.58 Property. That certain real property specifically described in Exhibit "A" attached to this Agreement and incorporated herein by this reference. 1.1.59 Purchase Price. Eight Hundred Seventy Thousand and No/100 Dollars ($870,000), which is the fair market value of the Property as of February 29, 2016, pursuant to that certain appraisal report conducted by Kent Carpenter of Hilco Valuation Services. 1.1.60 Real Estate Taxes. All general and special real estate taxes (including taxes on fixtures and equipment, sales taxes, use taxes and the like), supplemental taxes, possessory interest taxes, special taxes imposed pursuant to a special taxing district, assessments, municipal water and sewer rents, rates and charges, excises, levies, license and permit fees, fines, penalties and other governmental charges and any interest or costs with respect thereto, general and special, ordinary and extraordinary, foreseen and unforeseen, of any kind or nature whatsoever regarding the Property that may be assessed, levied, imposed upon, or become due and payable out of or in respect of, or charged with respect to or become a lien on, the Property. 1.1.61 Seller Parties. Collectively, the Seller, the Seller's governing body, and the Seller's elected officials, employees, agents and attorneys. 1.1.62 State. The State of California. 1.1.63 Third Person. Any Person that is not a Party, an Affiliate of a Party or an elected official, officer, director, manager, shareholder, member, principal, partner, employee or agent of a Party. 1.1.64 Title Company. Stewart Title of California, Inc., or such other Person mutually agreed upon in writing by both Seller and Buyer. 1.1.65 Transfer. Regarding any property, right or obligation, any of the following, whether by operation of Law or otherwise, whether voluntary or involuntary, and whether direct or indirect (a) any assignment, conveyance, grant, hypothecation, mortgage, pledge, sale, or other transfer, whether direct or indirect, of all or any part of such property, right or obligation, or of any legal, beneficial, or equitable Palm PIaza Purchase & Sale Agreement v2 Page 9 of 30 368 of 498 Attachment No. 4 interest or Mate in such property, right or obligation or any part of it (including the grant of any easement, lien, or other encumbrance); (b) any conversion, exchange, issuance, modification, reallocation, sale, or other transfer of any Equity Interest(s) in the owner of such property, right or obligation by the holders of such Equity lnterest(s); or (c) any transaction that is in substance equivalent to any of the foregoing. A transaction affecting Equity Interests, as refereed to in clauses (b) or (c) above of this Section, shall be deemed a Transfer by Buyer, even though Buyer is not technically the transferor. A "Transfer" shall not, however, include any of the following (provided that the other Party has received Notice of such occurrence) relating to the Property or any Equity Interest: (i) a mere change in the form of ownership with no material change in beneficial ownership and constitutes a tax -flee transaction under Federal income tax law and the State real estate transfer tax law, (ii) a conveyance only to member(s) of the immediate family(ies) of the transferor(s) or trusts for their benefit; or (iii) a conveyance only to a Person that, as of the Effective Date, holds an Equity Interest in the entity whose Equity Interest is being transferred. 1.1.66 Unavoidable Delay. A delay in either Party performing any obligation under this Agreement arising from or on account of any cause whatsoever beyond the Party's reasonable control, including strikes, labor troubles or other union activities, casualty, war, acts of terrorism, riots, litigation, governmental action or inaction, regional natural disasters or inability to obtain required materials. Unavoidable Delay shall not include delay caused by a Party's financial condition or insolvency. 1.1.67 Usury Limit. The highest rate of interest, if any, that Law allows under the circumstances. 2. EFFECTIVE DATE This Agreement shall become effective on the date on which both ofthe following have occurred ("Effective Date"): (a) Seller has received three (3) counterpart originals of this Agreement signed by the authorized representative(s) of Buyer; and (b) this Agreement has been approved by Seller's governing body and executed by Seller's City Manager. 3. PURCHASE AND SALE OF PREMISES 3.1 Escrow. Seller shall sell and convey fee title to the Property to Buyer and Buyer shall purchase and acquire fee title to the Property from Seller, subject to the Permitted Exceptions and the terms and conditions of this Agreement. For the purposes of exchanging funds and documents to complete the sale ofthe Property from Seller to Buyer and the purchase of the Property by Buyer from Seller, pursuant to the terms and conditions of this Agreement, Seller and Buyer agree to open the Escrow with the Escrow Agent. The provisions of Section 4 of this Agreement are, and shall constitute, the joint escrow instructions of the Parties to the Escrow Agent for conducting the Escrow. 3.2 Consideration. Buyer shall purchase the Property from Seller for the Purchase Price, subject to the terms and conditions of this Agreement. Buyer shall deposit the Purchase Price into the Escrow, as follows: 3.2.1 Deposit. Upon the Escrow Opening Date, Buyer shall deposit the Deposit into the Escrow. The Deposit shall initially be refundable until the due diligence Palm Plaza Purchase & Sale Agreement v2 Page 10 of 30 369 of 498 Attachment No. 4 condition of Section 3.3 is satisfied, and thereafter shall be nonrefundable unless this Agreement is thereafter terminated due to a Seller default, the failure of a Buyer's condition to Close of Escrow, a termination of this Agreement not due to Buyer's default, or as otherwise xpressly provided in this Agreement. The Deposit shall be held in Escrow until the Close of Escrow and shall be applied to the Purchase Price. 3.2.2 Remaining Purchase Price. At lease one (1) Business Day before the Escrow Closing Date, Buyer shall deposit into the Escrow the amount of the Purchase Price less the amount of the Deposit. 3.2.3 Independent Consideration. Notwithstanding any other provision of this Agreement to the contrary, the sum of One Hundred and No/100 Dollars ($100.00) out of the Deposit shall be paid by Escrow to Seller immediately following Escrow's receipt of the Deposit as "Independent Consideration" for the execution of this Agreement and the rights of Buyer granted herein, which said Independent Consideration shall be paid to Seller in all instances, upon execution hereof is fully earned, shall be applied against the Purchase Price and is not refundable for any reason, notwithstanding anything herein to the contrary. All references to Deposit herein shall mean the Deposit, less the Independent Consideration. 3.3 Due Diligence. 3.3.1 To the extent in Seller's possession, immediately following the Effective Date Seller shall deliver to Buyer, without any representation or warranty by Seller, the Due Diligence Materials (except for the Preliminary Report, which shall be provided by the Title Company). 3.3.2 Prior to the expiration of the Due Diligence Period, Buyer shall have the right to review and approve or disapprove, in its discretion, at Buyer's sole cost and expense, any environmental reports, soils inspection, conditions of title, zoning, surveys, the Due Diligence Materials, and all other reports as Buyer may deem necessary or appropriate in connection with this Agreement. In the event Buyer finds the Property unsatisfactory for any reason, then prior to the expiration of the Due Diligence Period Buyer shall have the right to, by a writing delivered to Seller and Escrow Agent, terminate this Agreement and the Escrow created pursuant thereto, in which event Buyer shall be entitled to the return of all monies previously deposited with Escrow Agent or released to Seller pursuant to this Agreement, and the Escrow and the rights and obligations of the Parties hereunder shall thereafter terminate and Buyer and Seller shall have no obligation to each other (except as otherwise set forth herein). 3.3.3 If, prior to the expiration of the Due Diligence Period, Buyer disapproves by a writing delivered to Seller any matters of title shown in the Preliminary Report, then Seller may, within fourteen (14) business days after its receipt of Buyer's notice of disapproval, elect in writing to eliminate or ameliorate to Buyer's satisfaction the disapproved title matters. Failure of Buyer to give disapproval of any matters of title shown in the Preliminary Report on or before the expiration of the Due Diligence Period shall be deemed to constitute Buyer's approval of all matters of title in the Preliminary Report. If Seller does not elect to eliminate or ameliorate to Buyer's satisfaction any disapproved matters of title Palm Plaza Purchase & Sale Agreement v2 Page 11 of 30 370 of 498 Attachment No. 4 shown in the Preliminary Report, then Buyer shall have the right to, by a writing delivered to Seller and Escrow Agent: (a) waive its prior disapproval, in which event the disapproved matters shall be deemed approved; or (ii) terminate this Agreement and the Escrow created pursuant thereto, in which event Buyer shall be entitled to the return of all monies previously deposited with Escrow Agent or released to Seller pursuant to this Agreement, and the Escrow and the rights and obligations of the Parties hereunder shall thereafter terminate and Buyer and Seller shall have no obligation to each other (except as otherwise set forth herein). 3.3.4 Upon the Effective Date of this Agreement until the expiration of the Due Diligence Period, subject to the provisions of this Section, Buyer may enter upon the Property to conduct any investigation, test, study or analysis related to the development of the Project. Buyer shall pay all costs with respect to such studies and tests and shall be solely responsible for the disposal of any soil samples (including any Hazardous Substance or other wastes in these samples), which obligation shall survive the termination of this Agreement. Buyer shall exercise due care, follow best commercial practices in connection with such entry and testing, and shall comply with all laws, ordinances, rules, regulations, orders and the like in connection with any entry onto or testing of the Property. Prior to any entry onto the Property, Buyer shall obtain and maintain, and shall require that its agents, consultants, contractors and representatives (collectively, the "Agents") to obtain and maintain in full force during the term of this Agreement, at Buyer's sole cost and expense, a policy of comprehensive liability insurance including property damage, with limits of at least $2M per occurrence/$4M aggregate, which will insure The City of National City, its elected officials, officers, agents and employees against liability for injury to persons, damage to property, and death of any person arising in connection with Buyer or its Agents entry upon the Property and/or conducting of tests or studies thereon. Prior to any entry onto the Property, the policy shall be approved in writing as to form and insurance (including approval of the insurance company) by the City. Buyer shall provide City with a copy of any insurance policy required hereunder, including an endorsement that states that the policy will not be cancelled except after thirty (30) days' notice in writing to City and names the additional insureds as required herein. Buyer shall provide City with evidence of such insurance coverage prior to any entry onto the Property by Buyer or its Agents. Prior to each and every entry onto the Property, Buyer shall provide City with not less than 48 hours prior written notice of Buyer or its Agents intended entry upon the Property and/or conducting of tests or studies thereon. Following any such tests or studies, Buyer shall leave the Property in substantially similar condition as of the Effective Date of this Agreement, and Buyer shall indemnify, defend and hold harmless City and its officers, members, employees and agents and the Property from and against any liabilities, claims, damages (including injury or damage to person or property), losses, costs, expenses and fees (including reasonable attorneys' and experts' fees and costs) relating to or resulting from the entry, inspections and studies conducted by Buyer and its Agents on, under, or about the Property. The foregoing indemnity shall survive beyond the Closing, or, if the sale is not consummated, beyond the termination of this Agreement. 3.3.5 If, prior to the expiration of the Due Diligence Period, Buyer disapproves of the condition of the Property, then Buyer shall have the right to, by a writing delivered to Seller and Escrow Agent, terminate this Agreement and the Escrow created pursuant thereto, in which event Buyer shall be entitled to the return of all monies previously deposited with Escrow Agent or released to Seller pursuant to this Agreement, and the Escrow Palm Plaza Purchase & Sale Agreement v2 Page 12 of 30 371 of 498 Attachment No. 4 and the rights and obligations of the Parties hereunder shall thereafter terminate and Buyer and Seller shall have no obligation to each other (except as otherwise set forth herein). 3.3.6 In the event of a termination of this Agreement pursuant to this Section, notwithstanding any other provision of this Agreement to the contrary, Buyer shall pay all escrow fees and costs. 3.4 "AS -IS" Acquisition. The Close of Escrow shall evidence Buyer's unconditional and irrevocable acceptance of the Property in the Property's AS IS, WHERE IS, SUBJECT TO ALL FAULTS CONDITION, AS OF THE CLOSE OF ESCROW, WITHOUT WARRANTY as to character, quality, performance, condition, title, physical condition, soil conditions, the presence or absence of fill, shoring or bluff stability or support, subsurface or lateral support, zoning, land use restrictions, the availability or location of utilities or services, the location of any public infrastructure on or off of the Property (active, inactive or abandoned), the suitability of the Property or the existence or absence of Hazardous Substances affecting the Property and with full knowledge of the physical condition of the Property, the nature of Seller's interest in and use of the Property, all laws applicable to the Property and any and all conditions, covenants, restrictions, encumbrances and all matters of record relating to the Property. The Close of Escrow shall further constitute Buyer's representation and warranty to Seller that: (a) Buyer has had ample opportunity to inspect and evaluate the Property and the feasibility of the uses and activities Buyer is entitled to conduct on the Property; (b) Buyer is relying entirely on Buyer's experience, expertise and Buyer's own inspection of the Property in the Property's current state in proceeding with acquisition of the Property; (c) Buyer accepts the Property in the Property's present condition; (d) to the extent that Buyer's own expertise with respect to any matter regarding the Property is insufficient to enable Buyer to reach an informed conclusion regarding such matter, Buyer has engaged the services of Persons qualified to advise Buyer with respect to such matters; (e) Buyer has received assurances acceptable to Buyer by means independent of Seller or Seller's agents of the truth of all facts material to Buyer's acquisition of the Property pursuant to this Agreement; and (t) the Property is being acquired by Buyer as a result of Buyer's own knowledge, inspection and investigation of the Property and not as a result of any representation made by Seller or Seller's agents relating to the condition of the Property, unless such statement or representation is expressly and specifically set forth in this Agreement. Seller hereby expressly and specifically disclaims any express or implied warranties regarding the Property. 3.5 Reservations. The approval of this Agreement by Seller shall not be binding on the City Council of the City or any commission, committee, board or body of the City regarding any other Approvals required by such bodies. No action by Seller with reference to this Agreement or any related documents shall be deemed to constitute issuance or waiver of any required Approvals regarding the Property or Buyer. 3.6 Non -Discrimination. 3.6.1 Buyer herein covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through Buyer, that there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those Palm Plaza Purchase & Sale Agreement v2 Page 13 of 30 372 of 498 Attachment No. 4 bases are defined in. Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall Buyer itself, or any person claiming under or through Buyer, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees of the Property. The foregoing covenants shall run with the land. 3.6.2 Buyer herein further covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through Buyer, that there shall be no discrimination on the basis of race, gender, religion, national origin, ethnicity, sexual orientation, age or disability in the solicitation, selection, hiring or treatment of any contractors or consultants, to participate in subcontracting/subconsulting opportunities. 3.6.3 Buyer understands and agrees that violation of any Subsection of this Section 3.6 shall be considered a material breach of this Agreement and may result in termination, debarment or other sanctions. 3.7 Form of Nondiscrimination and Nonsegregation Clauses . All deeds, leases or contracts made relative to the Property, improvements thereon, or any part thereof, shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: 3.7.1 (a) (1) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." (2) Notwithstanding paragraph (1), with respect to familial status, paragraph (1) shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in paragraph (1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall also apply to the above paragraph. 3.7.2 (a) (I) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to Palm Plaza Purchase & Sale Agreement v2 Page 14 of 30 373 of 498 Attachment No. 4 the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." (2) Notwithstanding paragraph (1), with respect to familial status, paragraph (1) shall not he construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in paragraph (1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the above paragraph. 3.7.3 In contracts: "There shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the grantee or transferee itself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees of the Property." 3.8 Effect and Duration of Covenants. The covenants established in this Agreement shall run with the land, without regard to technical classification and designation, and shall be for the benefit and in favor of and enforceable against the original Buyer, or if the Buyer is no longer the owner, then against its successors in interest, assigns and heirs. Unless set forth otherwise, the covenants described in Section 3.7 shall commence upon the Close of Escrow and shall be set forth and shall run for the time periods set forth in the applicable Grant Deed. 4. JOINT ESCROW INSTRUCTIONS 4.1 Opening of Escrow. The purchase and sale of the Property shall take place through the Escrow to be conducted by Escrow Agent. Escrow shall be deemed opened when a fully signed copy of this Agreement has been delivered to Escrow Agent. Escrow Agent shall confirm the Escrow Opening Date in writing to each of the Parties, with a copy of the Escrow Agent Consent signed by the authorized representative(s) of the Escrow Agent. 4.2 Escrow Instructions. This Section 4 constitutes the joint escrow instructions of the Parties to Escrow Agent for conduct of the Escrow for the purchase and sale of the Property, as contemplated by this Agreement. Buyer and Seller shall sign such further escrow instructions consistent with the provisions of this Agreement as may be reasonably requested by Escrow Palm Plaza Purchase & Sale Agreement v2 Page 15 of 30 374 of 498 Attachment No. 4 Agent. In the event of any conflict between the provisions of this Agreement and any further escrow instructions requested by Escrow Agent, the provisions of this Agreement shall control. 4.3 Escrow Agent Authority. Seller and Buyer authorize Escrow Agent to: 4.3.1 Charges. Pay and charge Seller and Buyer for their respective shares of the applicable fees, taxes, charges and costs payable by either Seller or Buyer regarding the Escrow; 4.3.2 Settlement/Closing Statements. Release each Party's Escrow Closing Statement to the other Party; 4.3.3 Document Recording. File any documents delivered for recording through the Escrow with the office of the Recorder of the County for recordation in the official records of the County, pursuant to the joint instructions of the Parties; and 4.3.4 Counterpart Documents. Utilize documents signed by Seller or Buyer in counterparts, including attaching separate signature pages to one original of the same document. 4.4 Buyer's Conditions Precedent to Close of Escrow. Provided that the failure of any such condition to be satisfied is not due to a Default under this Agreement by Buyer, Buyer's obligation to purchase the Property from Seller on the Escrow Closing Date shall be conditioned upon the satisfaction or waiver (waivers must be in writing and signed by Buyer) of each of the following conditions on or before the Escrow Closing Date: 4.4.1 Title Policy. Title Company has agreed to issue the Buyer Title Policy to Buyer upon payment of Title Company's premium for such policy; 4.4.2 CEQA Documents. Adoption, approval or certification of the CEQA Documents by each applicable Government; 4.4.3 Seller Escrow Deposits. Seller deposits all of the items into Escrow required by Section 4.7 of this Agreement; 4.4.4 Settlement/Closing Statement. Buyer reasonably approves Buyer's Escrow Closing Statement; and 4.4.5 Seller Pre -Closing Obligations. Seller performs all of Seller's material obligations required to be performed by Seller pursuant to this Agreement prior to the Close of Escrow. 4.5 Seller's Conditions Precedent to Close of Escrow. Provided that the failure of any such condition to be satisfied is not due to a Default under this Agreement by Seller, Seller's obligation to sell the Property to Buyer on the Escrow Closing Date shall be conditioned upon the satisfaction or waiver (waivers must be in writing and signed by Seller) of each of the following conditions precedent on or before the Escrow Closing Date: Palm Plaza Purchase & Sale Agreement v2 Page 16 of 30 375 of 498 Attachment No. 4 4.5.1 Compensation Agreement. Approval and full execution of a compensation agreement by each and every affected taxing entity as set forth in the LRPMP; 4.5.2 Building Permit. Buyer obtains a building permit from the City of National City for the development of the Project; 4.5.3 CEQA Documents. Adoption, approval or certification of the CEQA Documents by each applicable Government; 4.5.4 Buyer Escrow Deposits. Buyer deposits all of the items into Escrow required by Section 4.6 of this Agreement; 4.5.5 Settlement/Closing Statement. Seller reasonably approves Seller's Escrow Closing Statement; and 4.5.6 Title Policy. The Company has agreed to issue the Buyer Title Policy to Buyer upon payment of Title Company's premium for such policy; 4.5.7 Buyer Pre -Closing Obligations. Buyer performs all of Buyer's material obligations required to be performed by Buyer pursuant to this Agreement prior to Close of Escrow. 4.6 Buyer's Escrow Deposits. Buyer shall deposit the following items into Escrow and, concurrently, provide a copy of each document submitted into Escrow to Seller, at least one (1) Business Day prior to the Escrow Closing Date: 4.6.1 Closing Funds. All amounts required to be deposited into Escrow by Buyer under the terms of this Agreement to close the Escrow; 4.6.2 Certificate of Grant Deed Acceptance. The Certificate of Acceptance attached to the Grant Deed signed by Buyer in recordable form; 4.6.3 Escrow Closing Statement. The Buyer's Escrow Closing Statement signed by the authorized representative(s) of Buyer; and 4.6.4 Other Reasonable Items. Any other documents or funds required to be delivered by Buyer under the terms of this Agreement or as otherwise reasonably requested by Escrow Agent or Title Company in order to close the Escrow or comply with applicable Law that have not previously been delivered by Buyer. 4.7 Seller's Escrow Deposits. Seller shall deposit the following documents into Escrow and, concurrently, provide a copy of each document deposited into Escrow to Buyer, at least one (1) Business Day prior to the Escrow Closing Date: 4.7.1 Grant Deed. The Grant Deed signed by the authorized representative(s) of Seller in recordable form; Palm Plaza Purchase & Sale Agreement v2 Page 17 of 30 376 of 498 Attachment No. 4 4.7.2 Escrow Closing Statement. The Seller's Escrow Closing Statement signed by the authorized representative(s) of Seller; 4.7.3 FIRPTA Affidavit. A FIRPTA affidavit signed by the authorized representative(s) of Seller, in the form used by the Escrow Agent; Seller; and 4.7.4 Form 593. A Form 593 signed by the authorized representative(s) of 4.7.5 Other Reasonable Items. Any other documents or funds required to be delivered by Seller under the terms of this Agreement or as otherwise reasonably requested by Escrow Agent or Title Company in order to close the Escrow or comply with applicable Law that have not been previously delivered by Seller. 4.8 Closing Procedure. When each of Buyer's Escrow deposits, as set forth in Section 4.6 of this Agreement, and each of Seller's Escrow deposits as set forth in Section 4.7 of this Agreement, are deposited into Escrow, Escrow Agent shall request confirmation in writing from both Buyer and Seller that each of their respective conditions precedent to the Close of Escrow, as set forth in Sections 4.4 and 4.5, respectively, are satisfied or waived. Upon Escrow Agent's receipt of written confirmation from both Buyer and Seller that each of their respective conditions precedent to the Close of Escrow are satisfied or waived, Escrow Agent shall close the Escrow by doing all of the following: 4.8.1 Recording and Distribution of Documents. Escrow Agent shall cause the following documents to be filed with the Recorder of the County for recording in the official records of the County regarding the Property in the following order of priority at Close of Escrow: (a) the Grant Deed; and (b) any other documents to be recorded regarding the Property through the Escrow upon the joint instructions of the Parties. At Close of Escrow, Escrow Agent shall deliver conformed copies of all documents filed for recording with in the official records of the County through the Escrow to Seller, Buyer and any other Person designated in the written joint escrow instructions of the Parties to receive an original or conformed copy of each such document. Each conformed copy of a document filed for recording by Escrow Agent pursuant to this Agreement shall show all recording information. The Parties intend and agree that this Section 4.8.1 shall establish the relative priorities of the documents to be recorded in the official records of the County through the Escrow, by providing for recordation of senior interests prior to junior interests, in the order provided in this Section 4.8.1; 4.8.2 Funds. Distribute all funds held by the Escrow Agent pursuant to the Escrow Closing Statements approved in writing by Seller and Buyer, respectively; 4.8.3 FIRPTA Affidavit. File the FIRPTA Affidavit with the United States Internal Revenue Service; and 4.8.4 Form 593. File the Form 593 with the California Franchise Tax Board; Palm Plaza Purchase & Sale Agreement v2 Page 18 of 30 377 of 498 Attachment No. 4 4.8.5 Title Policy. Obtain from the Title Company and deliver to Buyer the Buyer Title Policy issued by the Title Company, with a copy delivered to Seller. 4.9 Close of Escrow. The Close of Escrow shall occur on or before the Escrow Closing Date. The City Manager in his or her sole and absolute discretion, acting on behalf of the Seller, is authorized to agree to one or more extensions of the Escrow Closing Date on behalf of Seller up to a maximum time period extension of ninety (90) days in the aggregate; provided that there shall be no extension permitted of the June 30, 2017 outside Escrow Closing Date set forth in Section 1.1.26. If for any reason (other than a Default or Event of Default by such Party) the Close of Escrow has not occurred on or before the Escrow Closing Date, then any Party not then in Default under this Agreement may cancel the Escrow and terminate this Agreement, without liability to the other Party or any other Person for such cancellation and termination, by delivering Notice of termination to both the other Party and Escrow Agent. Following any such Notice of termination of this Agreement and cancellation of the Escrow, the Parties and Escrow Agent shall proceed pursuant to Section 4.13 of this Agreement. Without limiting the right of either Party to cancel the Escrow and terminate this Agreement pursuant to this Section 4.9, if the Escrow does not close on or before the Escrow Closing Date and neither Party has exercised its contractual right to cancel the Escrow and terminate this Agreement under this Section 4.9 before the first date on which Escrow Agent Notifies both Parties that Escrow is in a position to close in accordance with the terms and conditions of this Agreement, then the Escrow shall close as soon as reasonably possible following the first date on which Escrow Agent Notifies both Parties that Escrow is in a position to close in accordance with the terms and conditions of this Agreement. 4.10 Escrow Costs. Escrow Agent shall Notify Buyer and Seller of the costs to be borne by each of them at the Close of Escrow by delivering an Escrow Closing Statement to both Seller and Buyer at least four (4) Business Days prior to the Escrow Closing Date. Each Party shall pay its own costs and expenses arising in connection with the Close of Escrow (including, without limitation, its own attorneys' and advisors' fees, charges, and disbursements), except the following costs ("Closing Costs"), which shall be allocated between the Parties as follows: (a) Escrow Agent charges for the conduct of the Escrow shall be paid one-half (1/2) by Seller and one-half (1/2) by Buyer; (b) The cost of the Buyer Title Policy attributable to the standard coverage portion shall be paid by Seller; (c) The cost of the Buyer Title Policy attributable to the extended coverage portion or any additional coverage and any endorsements shall be paid by Buyer; (d) The cost of any and all State, County, or City documentary stamps or transfer taxes regarding the conveyance of the Property through the Escrow shall be paid by Buyer; (e) The cost of any recording fees in connection with the recording of any documents in the official records of the County for the Close of Escrow and any and all other charges, fees, and taxes levied by each and every Government relative to the conveyance of the Property through Escrow shall be paid by Buyer; Palm Plaza Purchase & Sale Agreement v2 Page 19 of 30 378 of 498 Attachment No. 4 (f) Ad valorem taxes and assessments, if any, upon the Property, prior to the conveyance of title of the Property to Buyer shall be paid by Seller, and after the conveyance of title of the Property to Buyer shall be paid by Buyer consistent with Section 4.11 of this Agreement; and (g) All other closing fees and costs shall be charged to and paid by Seller and Buyer in accordance with customary practices in the County. 4.11 Allocation of Taxes. Real Estate Taxes relating to the Property, if any, shall be prorated between Seller and Buyer as of Midnight on the date prior to the Close of Escrow. 4.12 Escrow Cancellation Charges. If the Escrow fails to close due to Seller's Default under this Agreement, Seller shall pay all ordinary and reasonable Escrow and title order cancellation charges charged by Escrow Agent or Title Company, respectively. If the Escrow fails to close due to Buyer's Default under this Agreement, Buyer shall pay all ordinary and reasonable Escrow and title order cancellation charges charged by Escrow Agent or Title Company, respectively. Except as set forth in Section 3.3., above, if the Escrow fails to close for any reason other than the Default of either Buyer or Seller, Buyer and Seller shall each pay one-half (1/2) of any ordinary and reasonable Escrow and title order cancellation charges charged by Escrow Agent or Title Company, respectively. 4.13 Escrow Cancellation. If this Agreement is terminated pursuant to a contractual right granted to a Party in this Agreement to terminate this Agreement (other than due to an Event of Default by the other Party), the Parties shall do all of the following: 4.13.1 Cancellation Instructions. The Parties shall, within three (3) Business Days following Escrow Agent's written request, sign any reasonable Escrow cancellation instructions requested by Escrow Agent; 4.13.2 Return of Funds and Documents. Within ten (10) Business Days following receipt by the Parties of a settlement statement of Escrow and title order cancellation charges from Escrow Agent (if any) or within twenty (20) calendar days following Notice of termination, whichever is earlier: (a) Buyer or Escrow Agent shall return to Seller all documents previously delivered by Seller to Buyer or Escrow Agent, respectively, regarding the Property or the Escrow; (b) Seller or Escrow Agent shall return to Buyer all documents previously delivered by Buyer to Seller or Escrow Agent, respectively, regarding the Property or the Escrow; (c) Escrow Agent shall, unless otherwise expressly provided in this Agreement, return to Buyer all funds deposited in Escrow by Buyer, less Buyer's share of customary and reasonable Escrow and title order cancellation charges (if any) in accordance with Sections 3.3 and 4.12 of this Agreement; and (d) Escrow Agent shall, unless otherwise provided in this Agreement, return to Seller all funds deposited in Escrow by Seller, less Seller's share of customary and reasonable Escrow and title order cancellation charges (if any) in accordance with Section 4.12 of this Agreement. 4.14 Report to IRS. After the Close of Escrow and prior to the last date on which such report is required to be filed with the Internal Revenue Service under applicable Federal law, if such report is required pursuant to Internal Revenue Code Section 6045(e), Escrow Agent Palm Plaza Purchase & Sale Agreement v2 Page 20 of 30 379 of 498 Attachment No. 4 shall report the gross proceeds of the purchase and sale of the Property to the Internal Revenue Service on Form 1099-B, W-9 or such other form(s) as may be specified by the Internal Revenue Service pursuant to Internal Revenue Code Section 6045(e). Concurrently with the filing of such reporting form with the Internal Revenue Service, Escrow Agent shall deliver a copy of the filed form to both Seller and Buyer. 4.15 Condemnation. If any material portion of the Property, or any interest in any portion of the Property, is taken by condemnation prior to the Close of Escrow by any condemning authority other than Seller, including, without limitation, the filing of any notice of intended condemnation or proceedings in the nature of eminent domain, commenced by any governmental authority, other than Seller, Seller shall immediately give Buyer Notice of such occurrence, and Buyer shall have the option, exercisable within ten (10) Business Days after receipt of such Notice from Seller, to either: (i) terminate this Agreement; or (ii) continue with this Agreement in accordance with its terms, in which event Seller shall assign to Buyer any right of Seller to receive any condemnation award attributable to the Property. 5. REMEDIES AND INDEMNITY 5.1 BUYER'S RIGHT TO SPECIFIC PERFORMANCE AND LIMITATION ON RECOVERY OF DAMAGES. 5.1.1 ELECTION OF REMEDIES. DURING THE CONTINUANCE OF AN EVENT OF DEFAULT BY SELLER UNDER THIS AGREEMENT PRIOR TO THE CLOSING, BUYER SHALL BE LIMITED TO EITHER OF THE FOLLOWING REMEDIES: (1) AN ACTION AGAINST SELLER FOR SPECIFIC PERFORMANCE OF THIS AGREEMENT; OR (2) TERMINATION OF THIS AGREEMENT AND AN ACTION TO RECOVER THE DEPOSIT. UNDER NO CIRCUMSTANCES SHALL SELLER BE LIABLE TO BUYER UNDER THIS AGREEMENT FOR ANY AMOUNT EXCEEDING THE AMOUNT SET FORTH IN THIS SECTION 5.1.1, ANY SPECULATIVE, CONSEQUENTIAL, COLLATERAL, SPECIAL, PUNITIVE OR INDIRECT DAMAGES OR FOR ANY LOSS OF PROFITS SUFFERED OR CLAIMED TO HAVE BEEN SUFFERED BY BUYER. 5.1.2 WAIVER OF RIGHTS. SELLER AND BUYER EACH ACKNOWLEDGE AND AGREE THAT SELLER WOULD NOT HAVE ENTERED INTO THIS AGREEMENT IF SELLER WERE TO BE LIABLE TO BUYER FOR ANY MONETARY DAMAGES, MONETARY RECOVERY OR ANY REMEDY DURING THE CONTINUANCE OF AN EVENT OF DEFAULT UNDER THIS AGREEMENT BY SELLER, OTHER THAN SPECIFIC PERFORMANCE OF THIS AGREEMENT OR TERMINATION OF THIS AGREEMENT AND PAYMENT OF THE AMOUNT SPECIFIED IN CLAUSE "(2)" OF SECTION 5.1.1 OF THIS AGREEMENT. ACCORDINGLY, SELLER AND BUYER AGREE THAT THE REMEDIES SPECIFICALLY PROVIDED FOR IN SECTION 5.1.1 OF THIS AGREEMENT ARE REASONABLE AND SHALL BE BUYER'S SOLE AND EXCLUSIVE RIGHTS AND REMEDIES DURING THE CONTINUANCE OF AN EVENT OF DEFAULT UNDER THIS AGREEMENT BY SELLER BUYER WAIVES ANY RIGHT TO PURSUE ANY REMEDY OR DAMAGES AGAINST SELLER ARISING FROM OR RELATING TO THIS AGREEMENT OTHER THAN THOSE SPECIFICALLY PROVIDED IN SECTION 5.1.1 OF THIS AGREEMENT. Palm Plaza Purchase & Sale Agreement v2 Page 21 of 30 380 of 498 Attachment No. 4 5.1.3 CALIFORNIA CIVIL CODE SECTION 1542 WAIVER. BUYER ACKNOWLEDGES THE PROTECTIONS OF CALIFORNIA CIVIL CODE SECTION 1542 REGARDING THE WAIVERS AND RELEASES CONTAINED IN THIS SECTION 5.1, WHICH CIVIL CODE SECTION READS AS FOLLOWS: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 5.1.4 ACKNOWLEDGMENT. BY INITIALING BELOW, BUYER KNOWINGLY AND VOLUNTARILY WAIVES THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542 AND ALL OTHER STATUTES AND JUDICIAL DECISIONS (WHETHER STATE OR FEDERAL) OF SIMILAR EFFECT SOLELY REGARDING THE WAIVERS AND RELEASES CONTAINED IN THIS SECTION 51. Initiazed Buyer rey:. ntative(s) 5.1.5 STATEMENT OF INTENT. CALIFORNIA CIVIL CODE SECTION 1542 NOTWITHSTANDING, IT IS THE INl ENTION OF BUYER TO BE BOUND BY THE LIMITATIONS ON DAMAGES AND REMEDIES SET FORTH IN THIS SECTION 5.1, AND BUYER HEREBY RELEASES ANY AND ALL CLAIMS AGAINST SELLER FOR MONETARY DAMAGES, MONETARY RECOVERY OR OTHER LEGAL OR EQUITABLE RELIEF RELATED TO ANY EVENT OF DEFAULT UNDER THIS AGREEMENT BY SELLER, EXCEPT AS SPECIFICALLY PROVIDED IN THIS SECTION 5.1, WHETHER OR NOT ANY SUCH RELEASED CLAIMS WERE KNOWN OR UNKNOWN TO BUYER AS OF THE EFFECTIVE DATE OF THIS AGREEMENT. 5.2 LIQUIDATED DAMAGES TO SELL F . IF THE CLOSE OF ESCROW DOES NOT OCCUR ON OR BEFORE THE ESCROW CLOSING DATE DUE TO BUYER'S DEFAULT, THEN SELLER SHALL RETAIN THE DEPOSIT AS LIQUIDATED DAMAGES. THE AMOUNT OF THE DEPOSIT IS THE REASONABLE ESTIMATE BY THE PARTIES OF THE DAMAGES SELLER WOULD SUFFER FROM SUCH DEFAULT, IT BEING AGREED THAT IT IS EXTREMELY DIFFICULT, IF NOT IMPOSSIBLE AND IMPRACTICABLE, TO FIX THE EXACT AMOUNT OF DAMAGE THAT WOULD BE INCURRED BY SELLER AS A RESULT OF SUCH DEFAULT BY BUYER. UPON SUCH A DEFAULT BY BUYER, ESCROW SHALL BE CANCELED AND THE PARTIES SHALL PROCEED IN ACCORDANCE WITH SECTION 4.12 OF THIS AGREEMENT. IN ADDITION, IF ALL OR ANY PORTION OF THE DEPOSIT HAS BEEN DEPOSITED INTO ESCROW BY BUYER, ESCROW AGENT IS HEREBY IRREVOCABLY INSTRUC I ED BY BUYER AND SELLER TO DISBURSE THE DEPOSIT TO SELLER AS LIQUIDATED DAMAGES FOR BUYER'S Palm Plaza Purchase & Sale Agreement v2 Page 22 of 30 381 of 498 Attachment No. 4 DEFAULT UNDER THIS AGREEMENT AND FAILURE TO COMPLETE THE PURCHASE OF THE PREMISES, PURSUANT TO CALIFORNIA CIVIL CODE SECTIONS 1671, ET. SEQ. 5.3 Legal Actions. Either Party may institute legal action, at law or in equity, to enforce or interpret the rights or obligations of the Parties under this Agreement or recover damages, subject to the provisions of Section 5.1 or Section 5.2 of this Agreement, as applicable. 5.4 Rights and Remedies are Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the Parties set forth in this Agreement are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by such Party, at the same or different times, of any other rights or remedies for the same Default or the same rights or remedies for any other Default by the other Party. 5.5 Indemnification. 5.5.1 Buyer Indemnification. Buyer shall Indemnify the Seller Parties against any Claim related to this Agreement to the extent such Claim arises from: (a) any act, omission or negligence of the Buyer; (b) any agreements that Buyer (or anyone claiming by or through Buyer) makes with a Third Person regarding the property; (c) any worker's compensation claim or determination relating to any employee of Buyer or its contractors; or (d) any Environmental Claim attributable to any action or omission of Buyer. 5.5.2 Independent of Insurance Obligations. Buyer's indemnification obligations under this Agreement shall not be construed or interpreted as in any way restricting, limiting, or modifying Buyer's insurance or other obligations under this Agreement. Buyer's obligation to Indemnify the Seller Parties under this Agreement is independent of Buyer's insurance and other obligations under this Agreement. Buyer's compliance with Buyer's insurance obligations and other obligations under this Agreement shall not in any way restrict, limit or modify Buyer's indemnification obligations under this Agreement and are independent of Buyer's indemnification and other obligations under this Agreement. 5.5.3 Survival of Indemnification and Defense Obligations. The indemnity and defense obligations of the Buyer under this Agreement shall survive the expiration or earlier termination of this Agreement. 5.5.4 Indemnification Procedures. Wherever this Agreement requires any Indemnitor to Indemnify any Indemnitee: (a) Prompt Notice. The Indemnitee shall promptly Notify the Indemnitor of any Claim. (b) Selection of Counsel. The Indemnitor shall select counsel reasonably acceptable to Indemnitee. If the Indemnitee, in good faith, determines that its interests are not adequately protected by being provided a defense by the Indemnitor, the Indemnitee (and the other Indemnified parties) may, at its election, conduct the defense or participate in the defense of any Claim related in any way to this indemnification. If the Indemnitee, on behalf of the Palm Plaza Purchase & Sale Agreement v2. Page 23 of 30 382 of 498 Attachment No. 4 Indemnified parties, makes the foregoing election to conduct its own defense or obtain independent legal counsel in defense of any Claim related to this indemnification, then the Indemnitor shall pay all of the Legal Costs related thereto, including, without limitation, reasonable attorneys' fees and costs. (c) Cooperation. The Indemnitee shall reasonably cooperate with the Indemnitor's defense of the Indemnitee. (d) Settlement. The Indemnitor may only settle a Claim with the consent of the Indemnitee. Any settlement shall procure a complete release of the Indemnitee from the subject Claims, shall not require the Indemnitee to make any payment to the claimant and shall provide that neither the Indemnitee, nor the Indemnitor on behalf of the Indemnitee, admits any liability. 6. GENERAL PROVISIONS 6.1 Incorporation of Recitals. The Recitals of fact set forth preceding this Agreement are true and correct and are incorporated into this Agreement in their entirety by this reference. 6.2 Notices, Demands and Communications Between the Parties. 6.2.1 Delivery. Any and all Notices submitted by any Party to another Party pursuant to or as required by this Agreement shall be proper, if in writing and sent by messenger for immediate personal delivery, nationally recognized overnight (one Business Day) delivery service (i.e., United Parcel Service, Federal Express, etc.) or by registered or certified United States mail, postage prepaid, return receipt requested, to the address of the recipient Party, as designated below in Section 6.2.2. Notice may be sent in the same manner to such other addresses as either Party may from time to time designate by Notice in accordance with this Section 6.2. Notice shall be deemed received by the addressee, regardless of whether or when any return receipt is received by the sender or the date set forth on such return receipt, on the day that the Notice is sent by messenger for immediate personal delivery, one Business Day after delivery to a nationally recognized overnight delivery service or three (3) calendar days after the Notice is placed in the United States mail in accordance with this Section 6.2. Any attorney representing a Party may give any Notice on behalf of such Party. 6.2.2 Addresses. The Notice addresses for the Parties, as of the Effective Date of this Agreement, are as follows: To Buyer: To Seller: Palm Plaza Associates, LLC Attn: Jim Reynolds 4980 North Harbor Drive, Suite 203 San Diego, California 92106 City of National City 1243 National City Boulevard National City, California 91950 Palm Plaza Purchase & Sale Agreement v2 Page 24 of 30 383 of 498 Attachment No. 4 Attention: City Manager With a Copy to: Claudia Silva, City Attorney City of National City 1243 National City Boulevard National City, California 91950 6.3 Relationship of Parties. The Parties each intend and agree that Seller and Buyer are independent contracting entities and do not intend by this Agreement to create any partnership, joint venture or similar business arrangement, relationship or association between them. 6.4 Warranty Against Payment of Consideration for Agreement. Buyer represents and warrants to Seller that: (a) Buyer has not employed or retained any Person to solicit or secure this Agreement upon an agreement or understanding for a commission, percentage, brokerage or contingent fee, excepting bona fide employees of Buyer and Third Persons to whom fees are paid for professional services related to the documentation of this Agreement; and (b) no gratuities, in the form of entertainment, gifts or otherwise have been or will be given by Buyer or any of Buyer's agents, employees or representatives to any elected or appointed official or employee of the Seller in an attempt to secure this Agreement or favorable terms or conditions for this Agreement. Breach of the representations or warranties of this Section 6.4 shall entitle Seller to terminate this Agreement and cancel the Escrow (if open) upon seven (7) calendar days Notice to Buyer and, if the Escrow is open, to Escrow Agent. Upon any such termination of this Agreement, Buyer shall immediately refund any payments made to or on behalf of Buyer to Seller pursuant to this Agreement or otherwise related to the Property, any Approval or any CEQA Document, prior to the date of such termination. 6.5 Calculation of Time Periods. Unless otherwise specified, all references to time periods in this Agreement measured in days shall be to consecutive calendar days, all references to time periods in this Agreement measured in months shall be to consecutive calendar months and all references to time periods in this Agreement measured in years shall be to consecutive calendar years. Any reference to Business Days in this Agreement shall mean consecutive Business Days. 6.6 Principles of Interpretation. No inference in favor of or against any Party shall be drawn from the fact that such Party has drafted any part of this Agreement. The Parties have both participated substantially in the negotiation, drafting and revision of this Agreement, with advice from legal or other counsel and advisers of their own selection. A word, term or phrase defined in the singular in this Agreement may be used in the plural, and vice versa, all in accordance with ordinary principles of English grammar, which shall govern all language in this Agreement. The words "include" and "including" in this Agreement shall be construed to be followed by the words "without limitation". Each collective noun in this Agreement shall be interpreted as if followed by the words "(or any part of it)", except where the context clearly requires otherwise. Every reference to any document, including this Agreement, refers to such document, as modified from time to time (excepting any modification that violates this Agreement), and includes all exhibits, schedules, addenda and riders to such document. Every reference to a law, statute, regulation, order, form or similar governmental requirement refers Palm Plaza Purchase & Sale Agreement v2 Page 25 of 30 384 of 498 Attachment No. 4 to each such requirement as amended, modified, renumbered, superseded or succeeded, from time to time. 6.7 Governing Law. The procedural and substantive laws of the State shall govern the interpretation and enforcement of this Agreement, without application of conflicts or choice of laws principles or statutes. The Parties acknowledge and agree that this Agreement is entered into, is to be icily performed in and relates to real property located in the County of San Diego, State of California. All legal actions arising from this Agreement shall be filed in the Superior Court of the State in and for the County or in the United States District Court with jurisdiction in the County. 6.8 Unavoidable Delay; Extension of Time of Performance. 6.8.1 Notice. Subject to any specific provisions of this Agreement stating that they are not subject to Unavoidable Delay or otherwise limiting or restricting the effects of an Unavoidable Delay, performance by either Party under this Agreement shall not be deemed or considered to be in Default, where any such Default is due to the occurrence of an Unavoidable Delay. Any Party claiming an Unavoidable Delay shall Notify the other Party: (a) within three (3) calendar days after such Party knows of any such Unavoidable Delay; and (b) within three (3) calendar days after such Unavoidable Delay ceases to exist. To be effective, any Notice of an Unavoidable Delay must describe the Unavoidable Delay in reasonable detail. The Party claiming an extension of time to perform due to an Unavoidable Delay shall exercise commercially reasonable efforts to cure the condition causing the Unavoidable Delay, within a reasonable time. The extension of time for performance under this Agreement resulting from the occurrence of an Unavoidable Delay shall commence on the date of occurrence of the condition causing the Unavoidable Delay and shall, except for a legal action described in Section 6.12 of this Agreement, in no event be longer than ninety (90) calendar days after written Notice is received by a Party from the other Party of the occurrence of such an Unavoidable Delay. 6.8.2 Assumption of Economic Risks. EACH PARTY EXPRESSLY AGREES THAT ADVERSE CHANGES IN ECONOMIC CONDITIONS, OF EITHER PARTY SPECIFICALLY OR THE ECONOMY GENERALLY, OR CHANGES IN MARKET CONDITIONS OR DEMAND OR CHANGES IN THE ECONOMIC ASSUMPTIONS OF EITHER PARTY THAT MAY HAVE PROVIDED A BASIS FOR ENTERING INTO THIS AGREEMENT SHALL NOT OPERATE TO EXCUSE OR DELAY THE PERFORMANCE OF EACH AND EVERY ONE OF EACH PARTY'S OBLIGATIONS AND COVENANTS ARISING UNDER THIS AGREEMENT. ANYTHING IN THIS AGREEMENT TO THE CONTRARY NOTWITHSTANDING, THE PARTIES EXPRESSLY ASSUME THE RISK OF UNFORESEEABLE CHANGES IN ECONOMIC CIRCUMSTANCES OR MARKET DEMAND OR CONDITIONS AND WAIVE, TO THE GREATEST EXTENT ALLOWED BY LAW, ANY DEFENSE, CLAIM, OR CAUSE OF ACTION BASED IN WHOLE OR IN PART ON ECONOMIC NECESSITY, IMPRACTICABILITY, CHANGED ECONOMIC CIRCUMSTANCES, FRUSTRATION OF PURPOSE, OR SIMILAR THEORIES. THE PARTIES AGREE THAT ADVERSE CHANGES IN ECONOMIC CONDITIONS, EITHER OF THE PARTY SPECIFICALLY OR THE ECONOMY GENERALLY, OR CHANGES IN MARKET CONDITIONS OR Palm Plaza Purchase & Sale Agreement v2 Page 26 of 30 385 of 498 Attachment No. 4 DEMANDS, SHALL NOT OPERATE TO EXCUSE OR DELAY THE STRICT OBSERVANCE OF EACH AND EVERY ONE OF THE OBLIGATIONS, COVENANTS, CONDITIONS AND REQUIREMENTS OF THIS AGREEMENT. THE PARTIES EXPRESSLY ASSUME THE RISK OF SUCH ADVERSE ECONOMIC OR MARKET CHANGES, WHETHER OR NOT FORESEEABLE AS OF THE % FECTDAIL. i/ Initi s of &i Initials of Authorized Seller Representative(s) 6.9 Tax Consequences. Buyer acknowledges and agrees that Buyer shall bear any and all responsibility, liability, costs or expenses connected in any way with any tax consequences experienced by Buyer related to this Agreement. 6.10 Real Estate Commissions. 6.10.1 Seller Warranty. Seller: (a) represents and warrants that Seller did not engage or deal with any broker or finder in connection with this Agreement, and no Person is entitled to any commission or finder's fee regarding this Agreement on account of any agreement or arrangement made by Seller; and (b) shall Indemnify Buyer against any breach of the representation and warranty set forth in Subsection (a) of this Section 6.10.1. 6.10.2 Buyer Warranty. Buyer: (a) represents and warrants that Buyer did not engage or deal with any broker or finder in connection with this Agreement, and no Person is entitled to any commission or finder's fee regarding this Agreement on account of any agreement or arrangement made by Buyer; and (b) shall Indemnify Seller against any breach of the representation and warranty set forth in Subsection (a) of this Section 6.10.2. 6.11 No Third -Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any Person other than the Parties and their respective permitted successors and assigns, nor is anything in this Agreement intended to relieve or discharge any obligation of any Third Person to any Party or give any Third Person any right of subrogation or action over or against any Party. 6.12 Buyer Assumption of Risks of Legal Challenges. Buyer assumes the risk of delays or damages that may result to Buyer from each and every Third Person legal action related to Seller's approval of this Agreement or any associated Approvals, even in the event that an error, omission or abuse of discretion by Seller is determined to have occurred. If a Third Person files a legal action regarding Seller's approval of this Agreement or any associated Approvals (exclusive of legal actions alleging violation of Government Code Section 1090 by officials of Seller), Buyer shall have the option to either: (a) cancel the Escrow and terminate this Agreement, in which case the Parties and the Escrow Agent shall proceed in accordance with Section 4.13 of this Agreement; or (b) Indemnify Seller against such Third Person legal action, including all Legal Costs, monetary awards, sanctions and the expenses of any and all financial or performance obligations resulting from the disposition of the legal action; provided, however, that option "(a)" under this Section 6.12 shall only be available to Buyer prior to the Close of Escrow. Should Buyer fail to Notify Seller of Buyer's election Palm Plaza Purchase & Sale Agreement v2 Page 27 of 30 386 of 498 Attachment No. 4 pursuant to this Section 6.12 at least fifteen (1.5) calendar days before response to the legal action is required by Seller, prior to the Close of Escrow, Buyer shall be deemed to have elected to cancel the Escrow and terminate this Agreement pursuant to this Section 6.12 and, following the Close of Escrow, Buyer shall be deemed to have elected to Indemnify Seller against such Third Person legal action pursuant to this Section 6.12, all without further Notice to or action by either Party. Seller shall reasonably cooperate with Buyer in defense of Seller in any legal action subject to this Section 6.12, subject to Buyer completely performing Buyer's indemnity obligations for such legal action. Should Buyer elect or be deemed to elect to Indemnify Seller regarding a legal action subject to this Section 6.12, but fail to or stop providing such indemnification of Seller, then Seller shall have the right to terminate this Agreement or cancel the Escrow (or both) by Notice to Buyer and, if the Escrow is open, to the Escrow Agent. Nothing contained in this Section 6.12 is intended to be nor shall be deemed or construed to be an express or implied admission that Seller may be liable to Buyer or any Person for damages or other relief regarding an alleged or established failure of Seller to comply with the law. Any legal action that is subject to this Section 6.12 (including any appeal periods and the pendency of any appeals) shall constitute an Unavoidable Delay and the time periods for performance by either Party under this Agreement may be extended pursuant to the provisions of this Agreement regarding Unavoidable Delay. 6.13 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs, executors, administrators, legal representatives, successors and assigns. 6.14 Time Declared to be of the Essence. As to the performance of any obligation under this Agreement of which time is a component, the performance of such obligation within the time specified is of the essence. 6.15 Entire Agreement. This Agreement integrates all of the terms and conditions mentioned in this Agreement or incidental to this Agreement, and supersedes all prior or contemporaneous negotiations or previous agreements between the Parties, whether written or oral, with respect to all or any portion of the Property. 6.16 Waivers and Amendments. All waivers of the provisions of this Agreement must be in writing and signed by the authorized representative(s) of the Party making the waiver. All amendments to this Agreement must be in writing and signed by the authorized representative(s) of both Seller and Buyer. 6.17 No Imiplied Waiver. Failure to insist on any one occasion upon strict compliance with any term, covenant, condition, restriction or agreement contained in this Agreement shall not be deemed a waiver of such term, covenant, condition, restriction or agreement, nor shall any waiver or relinquishment of any rights or powers under this Agreement, at any one time or more times, be deemed a waiver or relinquishment of such right or power at any other time or times. 6.18 City Manager Implementation. Seller shall implement this Agreement through the City Manager, acting on behalf of the Seller. The City Manager or his/her designee is hereby authorized by Seller to enter into agreements and sign documents referenced in this Palm Plaza Purchase & Sale Agreement v2 Page 28 of 30 387 of 498 Attachment No. 4 Agreement or reasonably required to implement this Agreement on behalf of Seller, to issue approvals, interpretations or waivers, and to enter into certain amendments to this Agreement on behalf of Seller, to the extent that any such action(s) does/do not increase the monetary obligations of Seller. All other actions shall require the consideration and approval of the Seller's governing body, unless expressly provided otherwise by action of the Seller's governing body. Nothing in this Section 6.18 shall restrict the submission to the Seller's governing body of any matter within the City Manager's authority under this Section 6.18, in the City Manager's sole and absolute discretion, to obtain the Seller's governing body's express and specific authorization on such matter. The specific intent of this Section 6.18 is to authorize certain actions on behalf of Seller by the City Manager, but not to require that such actions be taken by the City Manager including, without limitation, any extension(s) granted pursuant to Section 4.9 of this Agreement, without consideration by Seller's governing body. 6.19 Survival of Agreement. All of the provisions of this Agreement shall be applicable to any dispute between the Parties arising from this Agreement, whether prior to or following expiration or termination of this Agreement, until any such dispute is finally and completely resolved between the Parties, either by written settlement, entry of a non -appealable judgment or expiration of all applicable statutory limitations periods and all terms and conditions of this Agreement relating to dispute resolution, indemnity or limitations on damages or remedies shall survive any expiration or termination of this Agreement. 6.20 Counterparts. This Agreement shall be signed in three (3) triplicate originals, each of which is deemed to be an original. 6.21 Facsimile or Electronic Signatures. Signatures delivered by facsimile or electronic mail shall be binding as originals upon the Party so signing and delivering; provided, however, that original signature(s) of each Party shall be required for each document to be recorded. [Signatures on following page] SIGNATURE PAGE TO REAL PROPERTY PURCHASE AND SALE AGREEMENT ANI) JOINT ESCROW INSTRUCTIONS Palm Plaza Purchase & Sale Agreement v2 Page 29 of 30 388 of 498 Attachment No. 4 IN WITNESS WHEREOF, the Parties have signed and entered into this Agreement by and through the signatures of their respective authorized representative(s) as follows: "SELLER" "BUYER" CITY OF NATIONAL CITY, a California PALM PLAZA ASSOCIATES, LLC, a municipal corporation California limited liability company *see notes below By: Name: Title: City Manager By: Name: ti/ j #44 M . 14 L.L Title: W 44/444 4 G- µ�, v.84 -... ATTEST: By: By: Name: Name: � �..., .. i E '-i , b r Title: City Clerk Title: APPROVED AS TO FORM: *Notes: This document must be executed by the Corporation's Chief Executive Officer, President or Vice -President, on the one hand, By: and the Corporations' Chief Financial Officer, Name: Claudia Gacitua Silva Treasurer, Assistant Treasurer or Secretary on Title: City Attorney the other hand. KANE, BALLMER & BERKMAN By: Name: Title: Special Counsel Palm Plaza Purchase & Sale Agreement v2 Page 30 of 30 389 of 498 Attachment No. 4 EXHIBIT "A" TO REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS Property Legal Description The land referred to herein is situated in the State of California, County of San Diego and described as follows: Parcel 1 of Parcel Map No. 13257 in the City of National City, filed in the Office of the County Recorder of San Diego County, May 8, 1894 as File No. 84-170925 of Official Records. APN: 557-410-20 EXHIBIT A 390 of 498 Attachment No. 4 EXHIBIT "B" TO REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS Grant Deed [behind this page] EXHIBIT B 391 of 498 Attachment No. 4 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of National City 1243 National City Boulevard National City, California 91950 Attn: City Manager MAIL TAX STATEMENTS TO: PALM PLAZA ASSOCIATES, LLC, a California limited liability company Attn: Juan -Pablo Mariscal 3790 Via de la Valle, Suite 311 Del Mar, California 92014 SPACE ABOVE THIS LINE FOR RECORDER'S USE Assessor's Parcel No. 557-410-20 OFFICIAL BUSINESS Document Exempt from Recording Fees Per Government Code §§ 6103 & 27383 DOCUMENTARY TRANSFER TAX $ Computed on the consideration or value of property conveyed; OR Computed on the consideration or value of property conveyed less liens or encumbrances remaining at time of sale. Signature of Declarant or Agent determining tax GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the CITY OF NATIONAL CITY, a California municipal corporation, herein called "Grantor", hereby grants to PALM PLAZA ASSOCIATES, LLC, a California limited liability company, herein called "Grantee", all right, title and interest of Grantor in that certain real property in the City of National City, County of San Diego, State of California, specifically described in Exhibit "A" attached hereto ("Property") and incorporated herein by this reference, subject to the existing easements, restrictions and covenants of record and consistent with the obligations of the Grantee under the Purchase Agreement (defined below). Whenever the term "Grantee" is used in this Grant Deed, such term shall include any and all successors, assigns, and heirs of Grantee in and to the Property, or any interest therein or any portion thereof. Palm Plaza City Grant Deed v l 392 of 498 Attachment No. 4 1. Conveyance in Accordance With Purchase Agreement. The Property is conveyed pursuant to that certain Real Property Purchase and Sale Agreement and Joint Escrow Instructions dated , 20_ and entered into by and between Grantor ("Seller" therein) and Grantee ("Buyer" therein) ("Purchase Agreement"), a copy of which is on file in the offices of the City Clerk of Grantor as a public record and which is incorporated herein by reference. Purchase Agreement as used herein shall mean, refer to and include the Purchase Agreement, as well as any riders, exhibits, addenda, implementation agreements, amendments, modifications, supplements and attachments thereto or other documents expressly incorporated by reference in the Purchase Agreement. Any capitalized term not herein defined shall have the same meaning ascribed to such term in the Purchase Agreement. All of the terms, covenants and conditions of this Grant Deed shall be binding upon the Grantee and the permitted successors and assigns of the Grantee. 2. Nondiscrimination. The Grantee herein covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Grantee itself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees of the Property. The foregoing covenants shall run with the land. All deeds, leases or contracts made relative to the Property, improvements thereon, or any part thereof, shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (a) (1) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." (2) Notwithstanding paragraph (1), with respect to familial status, paragraph (1) shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in paragraph (1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code Palm Plaza City Grant Deed v l 393 of 498 Attachment No. 4 and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall also apply to the above paragraph. (b) (1) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." (2) Notwithstanding paragraph (1), with respect to familial status, paragraph (1) shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in paragraph (1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the above paragraph. (c) In contracts: "There shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the grantee or transferee itself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees of the Property." 3. Violations Do Not Impair Liens. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Grant Deed shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest made in good faith and for value as to the Property, whether or not said mortgage or deed of trust is subordinated to this Grant Deed; provided, however, that any subsequent owner of the Property, or any interest therein or any portion thereof, shall be bound by such remaining covenants, conditions, restrictions, limitations and provisions, whether such owner's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. 4. Covenants Run With Land. All covenants contained in this Grant Deed shall be covenants running with the land. All of the Grantee's obligations and covenants hereunder shall remain in effect in perpetuity. Palm Plaza City Grant Deed v l 394 of 498 Attachment No. 4 5. Covenants For Benefit of Grantor. All covenants without regard to technical classification or designation, legal or otherwise, shall be, to the fullest extent permitted by law and equity, binding for the benefit of the Grantor and its successors and assigns, and such covenants shall run in favor of, and be enforceable by, the Grantor and its successors and assigns, against Grantee, its successors and assigns, to or of the Property conveyed herein or any portion thereof or any interest therein, and any party in possession or occupancy of the Property or portion thereof, for the entire period during which such covenants shall be in force and effect, without regard to whether the Grantor is or remains an owner of any land or interest therein to which such covenants relate. The Grantor and its successors and assigns, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at law or suits in equity or other proper proceedings to enforce the curing of such breach. [Signatures On Next Page] Palm Plaza City Grant Deed v l 395 of 498 Attachment No. 4 IN WITNESS WHEREOF, Grantor and Grantee have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized this day of ,2016. "GRANTOR" "SELLER" CITY OF NATIONAL CITY, a California municipal corporation By: Name: Title: City Manager ATTEST: By: Name: Title: City Clerk APPROVED AS TO FORM: By: Name: Claudia Gacitua Silva Title: City Attorney [Signatures Continue On Next Page] Page 5 of 6 Palm Plaza City Grant Deed v 1 396 of 498 Attachment No. 4 CERTIFICATE OF ACCEPTANCE OF GRANT DEED This is to certify that the interest in real property conveyed by the CITY OF NATIONAL CITY to PALM PLAZA ASSOCIATES, LLC, a California limited liability company, is hereby accepted by the undersigned officer on behalf of Grantee, through his or her signature below, subject to all of the matters hereinbefore set forth, and Grantee consents to recordation thereof by its duly authorized officer. "GRANTEE" *see notes below PALM PLAZA ASSOCIATES, LLC, a California limited liability company Dated: By: Name: Title: Dated: By: Name: Title: *Notes: This document must be executed by the Corporation's Chief Executive Officer, President or Vice -President, on the one hand, and the Corporations' Chief Financial Officer, Treasurer, Assistant Treasurer or Secretary on the other hand. Page 6 of 6 Palm Plaza City Grant Deed v 1 397 of 498 Attachment No. 4 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. STATE OF CALIFORNIA ) SS. COUNTY OF SAN DIEGO On , before me, 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) Description of Attached Document Title or Type of Documents: Number of Pages: OPTIONAL Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed By Signer(s) Signer's Name: o Corporate Officer — Title(s): o Partner - o Limited o General o Individual o Attorney in Fact o Trustee o Guardian or Conservator o Other: Signer is Representing: Signer's Name: o Corporate Officer — Title(s): o Partner - o Limited o General o Individual o Attorney in Fact o Trustee o Guardian or Conservator o Other: Signer is Representing: 398 of 498 Attachment No. 4 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. STATE OF CALIFORNIA ) SS. COUNTY OF SAN DIEGO On , before me, 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) Description of Attached Document Title or Type of Documents: Number of Pages: OPTIONAL Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed By Signer(s) Signer's Name: o Corporate Officer — Title(s): ❑ Partner - ❑ Limited o General ❑ Individual o Attorney in Fact ❑ Trustee o Guardian or Conservator o Other: Signer is Representing: Signer's Name: o Corporate Officer — Title(s): o Partner - o Limited o General o Individual o Attorney in Fact o Trustee o Guardian or Conservator o Other: Signer is Representing: 399 of 498 Attachment No. 4 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. STATE OF CALIFORNIA ) SS. COUNTY OF SAN DIEGO On , before me, 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) Description of Attached Document Title or Type of Documents: Number of Pages: OPTIONAL Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed By Signer(s) Signer's Name: o Corporate Officer — Title(s): o Partner - o Limited o General o Individual o Attorney in Fact o Trustee o Guardian or Conservator o Other: Signer is Representing: Signer's Name: o Corporate Officer — Title(s): o Partner - o Limited o General o Individual o Attorney in Fact o Trustee o Guardian or Conservator o Other: Signer is Representing: 400 of 498 Attachment No. 4 EXHIBIT "A" LEGAL DESCRIPTION The land referred to herein is situated in the State of California, County of San Diego and described as follows: Parcel 1 of Parcel Map No. 13257 in the City of National City, filed in the Office of the County Recorder of San Diego County, May 8, 1894 as File No. 84-170925 of Official Records. APN: 557-410-20 Exhibit A 401 of 498 RESOLUTION NO. 2016 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ACCEPTING THE FINDINGS MADE IN THE SUMMARY REPORT PURSUANT TO CALIFORNIA GENERAL CODE SECTION 52201 PERTAINING TO THE SALE OF A 1.07-ACRE PARCEL OF VACANT LAND LOCATED AT 1640 EAST PLAZA BOULEVARD IN NATIONAL CITY TO PALM PLAZA ASSOCIATES, LLC, AND APPROVING A REAL PROPERTY PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS FOR SAID VACANT LAND WHEREAS, the Community Development Commission as the National City Redevelopment Agency ("Redevelopment Agency") owned that certain real property generally located at 1640 East Plaza Blvd. (Assessor's Parcel No. 557-410-20) within the City of National City, County of San Diego, State of California (Property"); and WHEREAS, pursuant to California Health and Safety Code Section 34172, the Redevelopment Agency was dissolved by operation of law as of February 1, 2012, and pursuant to California Health and Safety Code Section 34173, the Successor Agency to the Community Development Commission as the National City Redevelopment Agency ("Successor Agency") became the successor agency and successor -in -interest to the Redevelopment Agency, confirmed by Resolution No. 2012-15 adopted on January 10, 2012, by the City Council of the City of National City ("City"); and WHEREAS, in accordance with California Health and Safety Code Section 34191.5, the Property was listed on Successor Agency's Revised Long Range Property Management Plan ("Revised LRPMP"), which provides that the Property is to be sold at fair market value, and the Revised LRPMP has been approved by the Oversight Board of the Successor Agency ("Oversight Board") and the California Department of Finance ("DOF'); and WHEREAS, at its regular meeting on May 17, 2016, the City of National City met and pursuant to Resolution No. 2016-70 accepted the transfer of the Property, among other properties, from the Successor Agency to the City in accordance with the LRPMP; and WHEREAS, at its regular meeting on May 17, 2016, the Successor Agency met and pursuant to Resolution No. 2016-77 approved the transfer of the Property, among other properties, from the Successor Agency to the City in accordance with the Revised LRPMP; and WHEREAS, in accordance with the DOF-approved Revised LRPMP, the net proceeds from the sale of the Property pursuant to the proposed Agreement will be distributed as property tax to each taxing entity in an amount proportionate to its share of property tax revenues; and WHEREAS, Palm Plaza Associates, LLC ("Buyer") has made an offer to purchase the Property from City at the Property's current "as is" fair market value of $870,000, and Successor Agency desires to sell the Property to Buyer pursuant to the terms and conditions of a proposed Real Property Purchase and Sale Agreement and Joint Escrow Instructions ("Agreement"). A copy of the proposed Agreement has been provided to the City; and WHEREAS, at its regular meeting on August 16, 2016, the City met and held a public hearing in accordance with Section 52201 of the California Government Code to discuss 402 of 498 Resolution No. 2016 — Page Two August 16, 2016 and consider the findings of a Summary Report and to also consider approving the Agreement and the sale of the Property as provided in the Agreement; and WHEREAS, a public notice was published in a newspaper of general circulation on August 1, 2016 and August 8, 2016 providing notification of the public hearing of the City on August 16, 2016 in compliance with the requirements of Section 52201 of the California Government Code; and WHEREAS, approval of the property transfer is not a "Project" under section 15378 of the California Environmental Quality Act ("CEQA") guidelines because the proposed action consists of administrative activity that will not result in direct or indirect physical changes to the environment and, as such, pursuant to section 15061(b)(5) of the CEQA Guidelines is not subject to CEQA; and, the underlying project is exempt from CEQA for two reasons: 1) it requires only ministerial approval by the City (Public Resources Code section 21080(b)(1) and Guidelines 15268), and 2) it is an urban infill project (Guidelines section 15332). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: SECTION 1. The Recitals set forth above are true and correct and are incorporated into this Resolution by reference. SECTION 2. The City finds, based on facts contained in the Summary Report prepared pursuant to Section 52201 of the California Government Code, the property will assist in the creation of economic opportunity and that consideration for the Property is not less than fair market value at its highest and best use; and the City accepts the findings of the Summary Report. SECTION 3. The City hereby approves of the terms of the Agreement. SECTION 4. The City hereby approves of, and directs the sale and conveyance of the Property from the City to the Buyer in accordance with the terms and conditions set forth in the Agreement. SECTION 5. The City hereby approves the Agreement and authorizes the Mayor to execute the Agreement; and delegates to the City Manager or her designee authority to execute any other documents necessary to carry out the sale of the Property, and to take all actions and sign any and all documents necessary to implement and effectuate the Agreement and the actions approved by this Resolution as determined necessary by the City Manager, or her designee, to execute all documents on behalf of the City (including, without limitation, a grant deed), and to administer the City's obligations, responsibilities and duties to be performed pursuant to this Resolution and the Agreement. SECTION 6. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or 403 of 498 Resolution No. 2016 — Page Three August 16, 2016 application, and to this end, the provisions of this Resolution are severable. The City declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution. PASSED and ADOPTED this 16th day of August, 2016. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor 404 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 405 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City reducing the property tax rate for the Library General Obligation Bonds for Fiscal Year 2017 from 0.92 cents per $100 of assessed valuation to 0.88 cents, a decrease of 4.55% (Finance) 405 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City reducing the property tax rate for the Library General Obligation Bonds for Fiscal Year 2017 from 0.92 cents per $100 of assessed valuation to 0.88 cents, a decrease of 4.55%. PREPARED BY: Javier Carcamo, Financial Services Officer DEPARTMENT: Finance PHONE: 619-336-4331 APPROVED BY: `t/I� EXPLANATION: In the special municipal election held on March 5, 2002, more than two-thirds of National City's eligible voters approved the issuance of General Obligation Bonds to fund the construction of the new National City Library. In April 2003, the City issued the General Obligation Bonds in the aggregate principal amount of $6 million. Those bonds mature on August 1st of each of the years 2004 through 2028. In 2012, the City refinanced the bonds to lower the interest rate on the bonds and to decrease the tax burden required for repayment. The amount of principal and interest to be paid each year is generated through the proceeds of property taxes received from the County of San Diego. Each year, the City must establish the property tax rate that is needed to raise the revenue required to service its annual bonded indebtedness. For Fiscal Year 2017, the calculated property tax rate is 0.88 cents per $100 of assessed value. This is a 4.55% reduction from the prior year rate of 0.92 cents and the 6th consecutive tax rate reduction since Fiscal Year 2011. The total tax rate reduction since Fiscal Year 2011 is approximately 38.03%. FINANCIAL STATEMENT: ACCOUNT NO. NA APPROVED: `$/ % ,{�(uFinance APPROVED: ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: MIS STAFF RECOMMENDATION: Adopt the resolution, reducing the property tax rate for the Library General Obligation Bonds for Fiscal Year 2017 from 0.92 cents per $100 of assessed valuation to 0.88 cents. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. General Obligation Bond Tax Rate Computation for Fiscal Year 2017 2. Resolution 406 of 498 General Obligation Bond Debt Service (Fund 259) Tax Rate Computation for Fiscal Year 2017 National City Secured Valuation Unsecured Valuation HO Exemption 1 Net Secured Valuation 3 Less Delinquency Allowance 4 Net after Delinqency 5 Plus HOPTR 6 Prelim Adj Secured Valuation 7 Less Redevelopment Impact 8 Adj Sec Valuation Less Redevelopment Impact 9 Anticipated Roll Corrections 10 Adj Sec Val for Rate Computation 16 Computed Rate 17 Plus .0001 Javier arcamo Financial Services ffice Assessed Rate Valuation 0.0088 3,357,736,933 0.0092 202,749,492 29,614,200 3,357,736,933 3,357,736,933 29,614,200 3,387,351,133 3, 387, 351,133 3,387,351,133 0.00872000 0.00882000 FY 16/17 Est. Revenue 296,152 18,734 314,886 Fund No. 6065-50 PY Rate Change: 11 Amount to be raised 12 Unsecured HOPTR 14 Unsecured Delinquency 15 Less Unsecured Redevelopment Impact 16 Amount to be raised by Secured Taxes 18a Tax rate times #4 18b Tax rate times HOPTR 19 Secured Proof 20 Raised by 1/100th mil 21,23 Taxes Raised PUTED RATE + 1/100TH MIL IS A REASONABLE TAX RATE FOR THIS FUND 8/1/2016 Date 4.55% 313,862 0 18,359 0 295,502 292,795 2,582 295,377 3,387 317,124 407 of 498 RESOLUTION NO. 2016 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE REDUCTION OF THE PROPERTY TAX RATE FOR THE LIBRARY GENERAL OBLIGATION BOND FOR FISCAL YEAR 2017 FROM 0.92 CENTS PER $100 OF ASSESSED VALUATION TO 0.88 CENTS, DECREASE OF 4.55% WHEREAS, in the special municipal election held on March 5, 2002, more than two-thirds of National City's eligible voters approved the issuance of General Obligation Bonds to fund the construction of the new National City Public Library; and WHEREAS, in April, 2003, the City issued the Library General Obligation Bonds in the aggregate principal amount of $6 million. Those bonds mature on August 1st of each of the years 2004 through 2028; and WHEREAS, in 2012, the City refinanced the bonds to lower the interest rate on the bonds and to decrease the tax burden required for repayment. The amount of principal and interest to be paid each year is generated through the proceeds of property taxes received from the County of San Diego; and WHEREAS, each year the City must establish the property tax rate that is needed to raise the revenue required to service its annual bonded indebtedness. For Fiscal Year 2017, the calculated property tax rate is 0.88 cents per $100 of assessed value. This is a 4,55% reduction from prior year rate of 0.92 cents and the 6th consecutive tax rate reduction since Fiscal Year 2011. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City National City hereby authorizes the reduction of the property tax rate for bonded indebtedness for Fiscal Year 2017 from 0.92 cents per $100 (0.0092%) of assessed valuation to 0.88 cents per $100 (0.0088%) of assessed valuation. 2012 GENERAL OBLIGATION BONDS: 0.88 per $100 ASSESSED VALUE (0.0088%) PASSED and ADOPTED this 16th day of August, 2016 ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor 408 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 409 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City approving a Conditional Use Permit for a craft beer tasting room (Novo Brazil) at 27 & 41 East 8th Street. (Applicant: Joshua Renner) (Case File 2016-12 CUP (Planning) 409 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City approving a Conditional Use Permit for a craft beer tasting room (Novo Brazil) at 27 & 41 East 81h Street. (Applicant: Joshua Renner) (Case File 2016- 12CUP PREPARE") BY7 :Martin Reeder, „IC11 DEPARTMEN1: iPianning. PHONE: 336-4313 APPROVED BY: EXPLANATION: The City Council conducted a public hearing on this item at the August 2, 2016 City Council meeting. Council asked staff to return with a resolution of approval based on the recommended Conditions of Approval presented at the public hearing, including the waiver of the recommended condition number 8. The waived condition required that total alcohol sales not exceed total sales of other products sold on site. The attached resolution is needed to take action on the item. FINANCIAL STATEMENT: ACCOUNT NO. i APPROVED: APPROVED: ENVIRONMENTAL REVIEW: Categorically Exempt pursuant to Class 1 Section 15301 (Existing Facilities) ORDINANCE: INTRODUCTION: 1 FINAL ADOPTION: L STAFF RECOMMENDATION: Adopt the Resolution BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: Resolution Finance MIS 4iuof4yu RESOLUTION NO. 2016 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A CONDITIONAL USE PERMIT FOR A CRAFT BEER TASTING ROOM (NOVO BRAZIL) AT 27 AND 41 EAST 8T" STREET WHEREAS, the City Council considered a Conditional Use Permit (CUP) for a craft beer tasting room (Novo Brazil) at 27 and 41 East 8" Street at a duly advertised public hearing held on August 2, 2016, at which time the City Council considered evidence; and WHEREAS, at said public hearing, the City Council considered the staff report provided for Case File No. 2016-12 CUP, which is maintained by the City and incorporated herein by reference, along with any other evidence presented at said hearing; and WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law, and is found to be essential for the preservation of the public health, safety, and general welfare. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the evidence presented to the City Council at the public hearing held on August 2, 2016, support the following findings: FINDINGS FOR APPROVAL OF THE CONDITIONAL USE PERMIT 1. The proposed use is allowable within the applicable zoning district pursuant to a Conditional Use Permit, and complies with all other applicable provisions of the Land Use Code because the use is allowable within Development Zone 4 of the Downtown Specific Plan as a retail use pursuant to a Conditional Use Permit, and the proposed use meets the required guidelines in the Land Use Code for alcohol sales, as discussed in the staff report. 2. The proposed use is consistent with the General Plan and any applicable specific plan because alcohol sales are permitted, subject to a Conditional Use Permit, by the Land Use Code, which is consistent with the General Plan. A public market with accessory beer sales is a use that is consistent with Development Zone 4 of the Downtown Specific Plan, which allows retail uses. 3. The design, location, size, and operating characteristics of the proposed activity would be compatible with the existing and future land uses in the vicinity because no expansion of the building is proposed. The proposal involves the interior construction of a public market space, which is consistent with other commercial businesses in the area. Development of the area was analyzed for traffic impacts as part of the Downtown Specific Plan, which envisioned significant density in this area. The sale of alcohol would be accessory to the sale of other products in the market, which would not create traffic issues above and beyond what was expected as part of the development of downtown. Access to and from the site is provided by East 8th Street, an arterial street operating at a Level of Service (LOS) of "C". East 8th Street in this location is operating at half of its capacity. In addition, the sale of alcohol is not expected to result in an increase in Average Daily Trips (ADT) such that the LOS would be affected, particularly as the area devoted to alcohol sales is only a small part of the overall public market. 4. The site is physically suitable for the type, density, and intensity of use being proposed, including access, utilities, and the absence of physical constraints because the proposed use would be accessory to the public market that will be located in an existing 411 of 498 Resolution No. 2016 — Page Two commercial area. The building is existing and has ten (10) on -street parking spaces adjacent to the property, as well as access to several nearby parking areas. 5. Granting the permit would not constitute a nuisance or be injurious or detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicinity and zone in which the property is located because the sale and consumption of beer would be a small part of the overall public market use, alcohol consumption would be monitored by staff of the tasting room and public market, and the proposed use will be subject to conditions that limit the sale of alcohol and restrict the hours that it will be available. 6. The proposed project has been reviewed in compliance with the California Environmental Quality Act (CEQA) and has been determined to be categorically exempt from environmental review pursuant to Class 1 Section 15301 (Existing Facilities) for which a Notice of Exemption will be filed subsequent to approval of this Conditional Use Permit. The reason for the exemption is that no expansion of the building is proposed and uses would basically be the same as non -conditionally allowed uses (commercial and retail enterprises). 7. That the proposed use is deemed essential and desirable to the public convenience or necessity because alcohol sales will contribute to the viability of a public market, an allowed use in Development Zone 4 of the Downtown Specific Plan. The tasting room as part of the market would be a draw for area and non -area residents alike. It would also help to further activate the downtown core, consistent with the spirit and intent of the Downtown Specific Plan. 8. That based on findings 1 through 7 above, public convenience and necessity will be served by a proposed use of the property for the retail sales of alcoholic beverages pursuant to law. BE IT FURTHER RESOLVED that the application for a Conditional Use Permit is approved subject to the following conditions: General 1. This Conditional Use Permit authorizes a beer tasting room at a proposed market to be located at 27 and/or 41 East 8th Street, including sales of sealed containers (commonly known as growlers) for off -site consumption (per ABC Type 23 license regulations). Only beer produced by the master licensee under a Type 23 (small beer manufacturer) license may be sold and/or consumed at this location. The serving and consumption of alcoholic beverages shall be limited to an area in substantial conformance with Exhibit "A", Case File No. 2016-12 CUP, dated June 7, 2016. 2. This permit shall become null and void if not exercised within one year after adoption of the Resolution of approval unless extended according to procedures specified in the Municipal Code. 3. This permit shall expire if the use authorized by this Resolution is discontinued for a period of 12 months or longer. This permit may also be revoked pursuant to provisions of the Land Use Code, if discontinued for any lesser period of time. 412 of 498 Resolution No. 2016 — Page Three 4. This Conditional Use Permit may be revoked if the operator is found to be in violation of the Conditions of Approval. 5. Before this Conditional Use Permit shall become effective, the applicant and the property owner both shall sign and have notarized an Acceptance Form provided by the Planning Department acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Conditional Use Permit. The applicant shall also submit evidence to the satisfaction of the Deputy City Manager that a Notice of Restriction on Real Property is recorded with the County Recorder. The applicant shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Conditional Use Permit are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to form by the City Attorney and signed by the Deputy City Manager prior to recordation. Planning 6. Alcohol sales shall be limited to the hours of 12:00 p.m. to 10:00 p.m., daily. 7. All sellers and servers of alcohol shall receive Responsible Beverage Service and Sales (RBSS) training, including all owners, and managers. The RBSS training must be certified by the Department of Alcoholic Beverage Control (ABC). Proof of completion of an approved RBSS program must be provided prior to issuance of a City business license. As part of the RBSS training, the permittee shall make available a domestic violence training session as provided by the Institute of Public Strategies. 8. Alcohol shall be available only in conjunction with the availability of food on the premises. 9. The consumption of alcoholic beverages is prohibited outside of the building, with the exception of the outdoor enclosed patio seating area. The permittee shall post signs, to be approved by the Planning Department, at the entrances and exits to the building prohibiting consumption of alcohol beyond those points. Said signs shall not be Tess than 17 by 22 inches (17" x 22") in size, with lettering not less than one inch (1") in height. The signs shall read as follows: a. "No consumption of alcohol is allowed beyond this point." b. "No open alcoholic beverage containers are allowed beyond this point." 10. All activities shall abide by the limitations contained in Table III of Title 12 (Noise) of the National City Municipal Code. 11. All activities involving the sale of food from a food truck or similar apparatus shall be consistent with Chapter 9.06 (Food Vending Vehicles) of the National City Municipal Code. 12. The proposed alcohol sales, service, and consumption shall abide by all applicable rules and regulations as stated by the California Department of Alcoholic Beverage Control (ABC). In the case where any of these conditions violate any laws, rules, or regulations administered by ABC, the laws, rules, or regulations shall govern. 413 of 498 Resolution No. 2016 — Page Four Police 13. Permittee shall comply with all regulatory provisions of the Business and Professions Code that pertain to the sale, serving, and consumption of alcoholic beverages. BE IT FURTHER RESOLVED that this Resolution shall become effective, final, and conclusive on the day following the City Council meeting where this Resolution is adopted. The time within which judicial review of this decision may be sought is governed by the provisions of Code of Civil Procedures Section 1094.6. PASSED and ADOPTED this 16' day of August, 2016. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor 414 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 415 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing the execution of an Order of Vacation of 250 feet of A Avenue located south of East 28th Street and north of East 29th Street. (Applicant: Frank Motors) (Case File No. 2013-23 SC) (P 415 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2010 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the execution of an Order of Vacation of 250 feet of "A" Avenue located south of East 28th Street and north of East 29th Street. (Applicant: Frank Motors) (Case File No. 2013-23 SC)' PREPARED BY: (Martin Reeder, AICO DEPARTMENT: Pia PHONE: 1619-336-4313! APPROVED BY: EXPLANATION: `The City Council held public hearings on December 16, 2014, March 17, 2015, 2, 2015, June 7, 2016 and finally on June 21, 2016. At the June 21st public hearing the City Council asked staff to return with a resolution to deny the applicants' street vacation request due to the current and prospective public use of the street proposed to be vacated. At the meeting of August 2, 2016, the Council asked staff to bring back a subsequent resolution to approve the street vacation (closure) based on findings for approval presented at the June 21, 2016 public hearing. The attached resolution is needed to take action on the item. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: ENVIRONMENTAL REVIEW: Exempt pursuant to CEQA, Section 15305 (Minor Alterations in Land Use Limitations ORDINANCE: INTRODUCTION: FINAL ADOPTION: 'I STAFF RECOMMENDATION: Finance MIS BOARD 1 COMMISSION RECOMMENDATION: Exempt pursuant to CEQA, Section 15305 Minor Alterations in Land Use Limitations, Class 5. The street and alley vacation do not result in any changes in land use. ATTACHMENTS. 1. Resolution 2. Order of Vacation 416 of 498 ORDER OF VACATION The City of National City, by authority of Resolution No. duly adopted on August 16, 2016 by the City Council of the City of National City, hereby orders the vacation of the 250 feet of "A" Avenue between East 28th Street and East 29' Street, more particularly described in Exhibit "A", attached hereto. Executed this 16" day of August, 2016. RON MORRISON, MAYOR MICHAEL R. 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POP MIME ENPAMIOpI Wier: !2/32j2 Is CITY OF NATIONAL CITY yR 4.0 SAN DIEGO BAY VICINITY MAP 1 ti a SCUE cti =30' MMF FRANK -A -VAC I GP1 RESOLUTION NO. 2016 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING EXECUTION OF AN ORDER OF VACATION OF 250 FEET OF "A" AVENUE BETWEEN EAST 28TH STREET AND EAST 29TH STREET WHEREAS, application was made requesting to vacate and close 250 feet of "A" Avenue located south of East 28" Street and north of East 29th Street in National City; and WHEREAS, on August 19, 2014, the City Council conducted a hearing and initiated said vacation and closure of "A" Avenue located south of East 28" Street and north of East 29th Street; and WHEREAS, on November 17, 2014, the Planning Commission of the City of National City considered the proposed vacation and closure, and found and determined that the vacation and closure of "A" Avenue located south of East 28" Street and north of East 29th Street conforms with the City's adopted General Plan; and WHEREAS, the City Council has considered the Planning Commission's report and recommendation, and the presentation of staff regarding the proposed vacation and closure; and WHEREAS, public hearings were held on December 16, 2014, March 17, 2015, June 2, 2015, June 7, 2016, and June 21, 2016, at which time all persons interested in or objecting to the proposed vacation and closure were afforded the opportunity to appear and be heard; and WHEREAS, the City Engineer of the City of National City caused notice of said vacation and closure to be posted in the manner specified by law; and WHEREAS, the National City General Plan does not consider the portion of "A" Avenue located south of East 28' Street and north of East 29th Street as an arterial or collector street; and WHEREAS, at the City Council hearings, evidence was submitted that there is a low volume of usage on the portion of "A" Avenue located south of East 28" Street and north of East 29" Street, based on the report provided by Stack Traffic Consulting; and WHEREAS, at the City Council hearings, evidence was submitted that said portion of "A" Avenue located south of East 28th Street and north of East 29" Street is used by neighboring residents; and WHEREAS, at the City Council hearings, evidence was submitted that the portion of "A" Avenue located south of East 28th Street and north of East 29' Street provides an access point to East 30" Street; and WHEREAS, at the City Council hearings, evidence was submitted that access to East 30th Street from properties in the neighborhood of the portion of "A" Avenue located south of East 28" Street and north of East 29t" Street was provided via alternate routes; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves said Street Vacation based on the following findings: 419 of 498 Resolution No. 2016 — Page Two 1. That the Street Vacation as described in Case File No. 2013-23 SC is not necessary for present or prospective public use because the National City General Plan does not consider the portion of "A" Avenue located south of East 28th Street and north of East 29th Street as an arterial or collector street. 2. That the Street Vacation as described in Case File No. 2012-23 SC is in compliance with the National City General Plan because the portion of "A" Avenue to be vacated serves minimal non -area occupant traffic, is not identified as an arterial or collector street in the Circulation Element of the General Plan, and access to existing utilities will continue to be provided. Furthermore, all resident and emergency access will be maintained to adjacent neighborhoods. 3. That the Street Vacation as described in Case File No. 2013-23 SC is not necessary for present or prospective public use because there is a low volume of usage on the portion of "A" Avenue located south of East 28th Street and north of East 29th Street, based on the report provided by Stack Traffic Consulting. 4. That the Street Vacation as described in Case File No. 2013-23 SC is not necessary for present or prospective public use because although multiple area residents stated that they prefer to use the subject segment of "A' Avenue in order to access southbound National City Boulevard from the controlled intersection at East 30th Street, other routes in the immediate vicinity are available. 5. That the Street Vacation as described in Case File No. 2012-23 SC is not necessary for present or prospective public use because emergency access will continue to be provided to surrounding areas, access to residential and commercial properties in the area will be maintained, and the existing street network is adequate to accept redirected traffic while still maintaining an acceptable level of service and operating safely. 6. That the right-of-way to be vacated is not needed for present or future public transportation uses because the properties abutting the street under consideration will continue to have access to public streets. 7. That while the area to be vacated is not required as a non -motorized transportation facility for pedestrians, bicyclists, or equestrians, adjacent streets will allow for the same through travel. BE IT FURTHER RESOLVED that the street vacation is approved subject to satisfaction of the following conditions: 1. A Preliminary Title Report and a policy of title insurance shall be provided prior to recordation of the Order to Vacate. 2. The owner and developer shall provide easements for sewer, any other public utilities within the street, and for emergency vehicle ingress/egress after vacation of said street. All utility easements shall remain in place until the utilities have been removed or replaced. 3. Adherence to the Conditions of Approval, attached hereto as Attachment "A" and incorporated by reference. 420 of 498 Resolution No. 2016 — Page Three 4. The Resolution ordering Vacation shall not be recorded until the above conditions have been satisfied. BE IT FURTHER RESOLVED by the City Council as follows: 1. That the Mayor and City Clerk are respectively authorized and directed to execute and attest an Order of Vacation of the above described portion of public right-of-way. 2. That the vacation of the above described portion of public right-of-way to motorized vehicles is made under the authority of Division 9, Part 3, Chapter 3 of the California Streets and Highways Code. 3. That the City Clerk is hereby authorized and directed to cause a certified copy of the Order of Vacation to be recorded in the office of the County Recorder of San Diego County, pursuant to Section 8325 of the California Streets and Highways Code. 4. That from and after the date that this Resolution is recorded, the above - described portion of public right-of-way no longer constitutes a street, except as reserved and excepted herein. PASSED and ADOPTED this 16th day of August, 2016. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor 421 of 498 CONDITIONS OF APPROVAL Case No. 2013-23 SC — A Avenue (Frank Motors) General 1. This Street Closure authorizes the vacation of 60 feet by 250 feet (60' x 250') of "A" Avenue south of East 28th Street. Except as required by conditions of approval, all plans submitted for permits associated with the project shall conform to Exhibit "A" — 2nd Revision, Case File No. 2013-23 SC dated June 13, 2016. 2. Within four (4) days of approval, pursuant to Fish and Game Code 711.4 and the California Code of Regulations, Title 14, Section 753.5, the applicant shall pay all necessary environmental filing fees for the San Diego County Clerk. Checks shall be made payable to the San Diego County Clerk and submitted to the National City Planning Department. Fire 3. Plans submitted for improvements must comply with the current editions of the California Fire Code (CFC) and National Fire Protection Association (NFPA). 4. Identification signs shall be posted for all utilities such as natural gas and fire sprinkler system. Please contact the National City Fire Department for direction and a copy of requirements. 5. Fire department access roads shall meet the requirements of the 2013 California Fire Code Section 503 Fire Apparatus Roads. Facilities, buildings, or portions of buildings hereafter constructed shall be accessible to Fire Department apparatus by way of an approved fire apparatus access road with an asphalt, concrete, or other approved driving surface capable of supporting the imposed load of a fire apparatus weighing at least 75,000 pounds. Fire department access roads shall have an unobstructed width of not Tess than 20 feet (20') for emergency vehicle travel. Where required by the fire code official, approved signs or other approved notices or markings that include the words NO PARKING — FIRE LANE shall be provided for fire apparatus access roads to identify such roads or prohibit the obstruction thereof. Fire apparatus access roads shall not be obstructed in any manner, including the parking of vehicles. 6. Roads or alleys 20 feet to 26 feet wide shall be posted on both sides as fire lanes. 7 If automatic gates are used, emergency strobes shall be for entrance and egress, if applicable. 8. The National City Fire Department shall be involved with all fire inspections for this site. Rough inspections of all phases of work are required. 9. A 48-hour notice is required for all inspections. ATTACHMENT A 422 of 498 Engineering 10. The Applicant shall submit a plat and legal description of the proposed area of the street vacation and any applicable street dedication. 11. The Applicant shall submit a title report for all properties adjacent to the portion of "A" Avenue to be vacated. 12. The street vacation document shall provide all necessary easements as required by the various utility companies. 13. The street vacation document shall provide to the City of National City a twenty foot (20') access and sewer easement ten feet (10') on either side of the existing center line of the portion of "A" Avenue to be vacated. 14. The street vacation document shall provide to the City of National City a drainage easement over that portion of "A" Avenue to be vacated. 15. The Applicant shall submit plans and details of all gates, fences, barricades, and appurtenances proposed to be installed at either end of the vacated portion of "A" Avenue. Planning 16. Access to all existing utilities that reside in the area to be vacated, including water mains, power and telephone poles, and a sewer main shall be maintained or abandoned/relocated as required by the respective utility owner. 17. If the proposed cul-de-sac is constructed in the public right-of-way or in the event that the cul-de-sac is dedicated as public right-of-way in the future, the cul-de- sac shall be designed per American Association of State Highway and Transportation Officials (AASHTO) standards to accommodate the turning radius of a 30-foot (30') overall length and/or 20-foot (20') wheelbase single -unit vehicle. 18. The proposed cul-de-sac shall be marked as red curb "No Parking" to the satisfaction of the City Engineer. 19. All transport trucks shall enter the property from the south (northbound "A" Avenue) only. No transport truck entry shall be permitted from the north (East 28th Street). 20. No offloading of transport trucks shall occur off -site. 21. Driveway aprons on the remainder of "A" Avenue that are not driveway access shall be abandoned and reconstructed to provide curb, gutter, and sidewalk per City requirements. 22. A landscaped/vegetated barrier shall be constructed along the north property lines of parcels on East 28th Street, as well as along property lines adjacent to residentially -developed parcels. The design of the fence shall include audial as well as visual screening of activities from adjacent residential properties. 2 423 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 424 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City, 1) awarding a contract to Portillo Concrete, Inc. in the not -to -exceed amount of $2,496,925 for the Sewer Line Replacement and Upsizing Project, CIP No. 16-05; 2) authorizing a 15% contingency i 424 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 AGENDA ITEM NO. 1 ITEM TITLE: Resolution of the City Council of the City of National City, 1) awarding a contract to Portillo Concrete, Inc. in the not -to -exceed amount of $2,496,925 for the Sewer Line Replacement and Upsizing Project, CIP No. 16-05; 2) authorizing a 15% contingency in the amount of $374,538.75 for any unforeseen changes; 3) authorizing the Mayor to execute the contract; and 4) authorizing the appropriation of $1,500,000 in the Sewer Upsizing CIP account from Sewer Service Fund balance. PREPARED BY: Jose Lopez, Junior Engineer - Civil PHONE: 619-336-4312 EXPLANATION: See attached. FINANCIAL STATEMENT: ACCOUNT NO. 125-409-500-598-2024 (Sewer Upsizing CIP) ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: DEPARTMEN`I Engineering/Public Works APPROVED BY. APPROVED: APPROVED: STAFF RECOMMENDATION: MIS Adopt Resolution awarding a contract to Portillo Concrete, Inc. in the not -to -exceed amount of $2,496,925 for the Sewer Line Replacement and Upsizing Project, CIP No. 16-05. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Explanation 2. Bid Opening Summary 3. Three Lowest Bidders Summary 4. Resolution 425 of 498 EXPLANATION The project represents the first phase of improvements to increase capacity and efficiency of the sewer collection system citywide. The general scope of work includes replacement of 21-inch, 12-inch & 8-inch diameter PVC sewer main, manholes, sewer laterals; cold -mill grind and overlay of existing road section for Plaza Blvd, as well as National City Boulevard from and including the intersection of Mile of Cars Way through the intersection of 22nd St; installation of curb & gutter, AC dikes, AC driveways entrances and driveways; sidewalks, pedestrian curb ramps for ADA compliance, signing and striping, and other related improvements. On June 22, 2016, the bid solicitation was posted on PlanetBids, a free public electronic bidding system for contractors. On June 27, 2016 and July 5, 2016, the bid solicitation was advertised in local newspapers. On July 13, 2016, four (4) bids were received electronically on PlanetBids by the 1:00 p.m. deadline. Bid results were available immediately after the 1:00 p.m. deadline. PAL General Engineering, Inc. was the apparent lowest bidder with a total base bid amount of $1,977,475. Upon review of all documents submitted, PAL General Engineering, Inc.'s bid was deemed "non -responsive" due to bid irregularities. PALM Engineering Construction Company, Inc. was the second lowest bidder with a total base bid amount of $2,386,300. Upon review of all documents submitted, PALM Engineering Construction Company, Inc.'s bid was also deemed "non -responsive" due to bid irregularities. Portillo Concrete, Inc. was the third lowest bidder with a total base bid amount of $2,496,925. Upon review of all documents submitted Portillo Concrete, Inc.'s bid was deemed responsive, and they are the lowest responsible bidder qualified to perform the work as described in the project specifications. Therefore, staff recommends awarding a contract to Portillo Concrete, Inc. in the not -to exceed amount of $2,496,925. Staff also recommends authorizing a 15% contingency in the amount of $374,538.75 to address any unforeseen conditions that may arise. The contract will be funded through the Sewer Service Fund. Attached are the bid opening summary sheet and a line item summary of the three lowest bidders for reference. 426 of 498 NAME: CIP NO: DATE: TIME: ESTIMATE: �+•* cAtl.F RMI.A..„ motpireatairo BID OPENING RESULTS SEWER LINE REPLACEMENT AND UPSIZING PROJECT (PHASE 1) 16-05 Wednesday, July 13, 2016 1:00 P.M. s2,o00,000 PROJECT ENGINEER: Kuna Muthusamy, P.E. NO. BIDDER'S NAME BID AMOUNT BID -BONADDENDA SECURITY 1 PAL General Engineering, Inc. 5374 Eastgate Mall San Diego, CA 92121 $1,977,475 (Non -Responsive) Yes Bond 2. palm Engineering Construction Company, Inc. 7330 Opportunity Rd #J San Diego, CA 92111 $2,386,300 (Non -Responsive) Yes Bond 3. $2,496,925 Yes Bond Portillo Concrete, Inc. 3527 Citrus St. Lemon Grove, CA 91945 4. Basile Construction, Inc. 7952 Armour Street San Diego, CA 92111 $2,778,965 Yes Bond 427 of 498 Bid Results for Sewer Line Replacement and Upsizing Project (CIP No. 16-05) PORTILLO CONCRETE, INC. - PAL GENERAL ENtiINEI=RING, INC Nor! -Responsive PALM !. NRI/NIL RIfik- CONSTRUCTIOtil Cif :+SPAN' ' INC hlemAcsptu+t�ui Item No. Description Unit Qty. Unit Price Extension (Quantity x Unit Price) Unit Price Extension (Quantity x Unit Price) Unit Price Extension (Quantity x Unit Price) Base Bid - General 1 Mobilization and Demobilization LS 1 $80,000.00 $80,000.00 $60,000.00 $60,000 00 $40,000.00 $ ,0,01e 0 00 2 Removal and disposal of unsuitable soil and import/placement of select import soil CY 1500 $25.00 $37,500.00 $79.00 $118,500.00 $10.00 SI,OM n0 Subtotal $117,500.00 $178,500.00 ' 555 O'Jft00 Base Bid - National City Blvd 3 Traffic/Pedestrian Control LS 1 $15,000.00 $15,000.00 $25,000.00 $25,000.00 $25,000.00 S25.000 000 4 Stormwater Management LS 1 $14,000.00 $14,000.00 $5,000.00 $5,000.00 $10,000.00 $i'i COO Oi'a 5 Surveying LS 1 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $8,000.00 t.f7K0.n0 6 Sewer Bypass LS 1 $10,500.00 $10,500.00 $11,000.00 $11,000.00 $40,000.00 +;.t0,0(w.1 00 7 Clearing and Grubbing LS 1 $25,000.00 $25,000.00 $23,638.00 $23,638 00 $30,000.00 I ,3ci,014),i 8 Demolition and Removal (recycle) of Bituminous and Concrete Street CY 110 $50.00 $5,500.00 $195.00 $21,450.00 $120.00 c13.2..00.00 9 Excavation Shoring & Bracing LS 1 $11,000.00 $11,000.00 $29,000.00 $29,000.00 $10,000.00 $10,00.1) 00 10 Dewatering Mobilization/Demobilization LS 1 $9,000.00 $9,000 00 $3,000.00 $3,,000 00 $5,000.00 S5,OOOEO0 11 Dewatering (daily) DAY 20 $450.00 $9,000 00 $1,200.00 $24, n00 n0 $5oo.00 S 10,0iCJ 00 12 12" PVC Sewer Main LF 685 $220.00 ',1. $150,700.00 $124.00 $84,940 00 $180.00 1.23.300.00 13 6" PVC Sewer Lateral LF 425 $280.00 $119,0oo GO $195.00 $82,875 00 $160.00 $68.000.00 14 Sewer Lateral Connection to existing lateral with SDRSD SC-01 Clean out at property line EA 8 $1,000.00 5g,nr70,00 $1,000.00 $8,000 00 $3,500.00 $28;0OOE Q 15 48" Sewer Manhole EA 4 $10,000.00 $40" o0 t'," $7,500.00 $30,,000.00 0 0 t r r $4.4.000 00 16 60" Sewer Manhole EA 1 $14,000.00 $1.4,000.1Y1 $8,000.00 $8,000 00 $15,000.00 S15. 43411 (3 17 Manhole Abandonment EA 3 $2,400.00 $7_, 00.00 $5,000.00 $15,000 00 $1,000.00 S3,0 428 of 498 Bid Results for Sewer Line Replacement and Upsizing Project (CIP No. 16-05) PORTILLO CONCRETE, INC... PAL GENERAL ENGINEERING, INC Non-Respon slue PALM f,NGINEH ING CONSTRUCTION COMPANY, INC Item No. Description Unit Qty. Unit Price Extension (Quantity x Unit Price) Unit Price Extension (Quantity x Unit Price) Unit Price Extension (Quantity x Unit Price) 18 Sewer Main Abandonment LS 1 $8,000.00 $8,000.00 $12,500.00 $12,500 00 $6,500.00 _ $6.500 00 19 24" RCP Storm Drain LF 48 $400.00 $19,200.00 $299.00 $14.352 00 $300.00 S14.100.00 20 Repair Cavatation Damage to Drainage Structure at Northeast Corner LS 1 $5,000.00 $5,000.00 $4,800.00 $4,800.00 $1.0,000.00 S10,000.00 21 2" AC Grind _ SF 30000 $0.50 $15,000.00 $0.41 $12,300.00 $0.40 $ 1,2,000 00� 22 2" AC Overlay TON 400 $180.00 $72,000.00 $109.00 $43,600 00 $120.00 $41 .000 00 23 Restore Existing Striping and Pavement Markings (except checker crosswalk) LS 1 $2,000.00 $2,000 00 $1,850.00 $1,850.00 $10,000.00 S 10.0 00,001, 24 Remove and Replace One Side (leg) of Checkered Crosswalk at NCB and Mile of Cars Way EA 4 $13,000.00 552,000.00 $12,800.00 $51,200.00 $1,500.00 S6,00e-00 25 Traffic Loops EA 15 $460.00 $6,900.00 $285.00 $4,275.00 $400.00 S6, I00.00 26 Field Orders (Allowance) AL 1 $10,000.00 $10,000 00 $10,000.00 $10,000.00 $10,000.00 $10.000.00 Subtotal $633,000.00 $530,780.00 S555,40G.00 Base Bid -Plaza Blvd 27 Traffic/Pedestrian Control LS 1 $30,000.00 $30,000.00 $23,000.00 $23,000.00 $50,000.00 $50,i n0.0O 28 Stormwater Management LS 1 $10,000.00 $10,000.00 $5,000.00 $5,000 00 $1.0,000.00 $10.000:00 29 Surveying LS 1 $7,000.00 57,000.00 $5,000.00 $5,000.00 $15,000.00 $15,000 00 30 Clearing and Grubbing LS 1 $25,000.00 $25,000 00 $28,000.00 $28,000.00 $60,000.00 $60.000-00 31 Demolition and Removal (recycle) of Bituminous and Concrete Street CY 410 $50.00 $20,500.00 $79.00 $32,390 00 $100.00 Set 1.000.0ri 32 Sewer Bypass LS 1 $180,000.00 $180,000.00 $16,000.00 $16,000 00 $80,000.00 $80,000.00 33 Dewatering Mobilization/Demobilization LS 1 $6,000.00 $6,000.00 $3,000.00 $3,000.00 $10,000.00 $10,000.00 34 Dewatering (Daily) DAY 20 $57.00 $1,140.00 $1,100.00 $22,000 00 $1,000.00 $20,000_00 429 of 498 Bid Results for Sewer Line Replacement and Upsizing Project (CIP No. 16-05) PORTILLO CONCRETE, INC PAL GENERAL ENGINEERING, INC Non -Responsive PALM FNGJNFfFING CoNSTRUCTION COMPANY, INC '11/217. Ronponsru, Item No. Description Unit Qty. Unit Price Extension (Quantity x Unit Price) Unit Price Extension (Quantity x Unit Unit Price Extension (Quantity x Unit Price) Price) 35 Excavation Shoring & Bracing LS 1 $20,000.00 $20,000 00 $37,000.00 $37,000,00 $40,000.00 S40,000 00 36 21" PVC Sewer Main LF 2035 $260.00 $529,100.00 $130.50 $265,567.50 $280.00 $569,6Q0 pn 37 18" PVC Sewer Main LF 190 $300.00 $57,000.00 $125.25 $23,797.50 $250.00 54740O.00 38 8" PVC Sewer Main LF 16 $345.00 $5,520.00 $390.00 $6,240.00 $200.00 I f ;13.20f>,00 39 Manhole Re -channeling and connect new main to existing manhole EA 2 $7,500.00 $15,000 GO $2,875.00 55,750.00 $3,000.00 tea, 100 00 40 Connect 8" PVC Sewer Main Extension EA 2 $3,500.00 $7,000.00 $1,250.00 $2,500 00 $1,500.00 S3,000 00 41 6" PVC Sewer Lateral LF 1360 $170.00 $231,200.00 $185.00 $251,600.00 $180.00 S244,80LIOD 42 Sewer Lateral Connection to existing lateral with SDRSD SC-01 Clean out at property line EA 35 $900.00 $31,500 00 $1,000.00 $35,000 00 $1,000.00 $15,000 00 43 60" Sewer Manhole EA 8 $13,500.00 $108,000.00 $12,000.00 $96,000.00 $13,500.00 $108.000_00 44 60" Sewer Manhole with drop at station 66+00 EA 1 $18,000.00 $18,000.00 $13,000.00 $13,000 00 $15,000.00 S1-5,000-00 45 Sewer Main Clean -out, Type "A" EA 1 $4,500.00 $4,500.00 $6,000.00 $6,000 00 $3,000.00 S3,(m 0r4 46 Rehabilitation and lining of Sewer Manhole #1445 EA 1 $11,000.00 $11,000.00 $9,670.00 $9,670.00 $8,500.00 8;51)0. i0 47 Rehabilitation and lining of Sewer Manhole #1461 EA 1 $11,000.00 $11,000.00 $5,700.00 $5,700 00 $8,500.00 68,500 00 48 Sewer Main Abandonment LS 1 $6,500.00 _ $6,500.00 $15,000,00 $15,000 00 $10,000.00 11,10,000 00 49 PCC Crossgutter SF 120 $18.00 $2,160.00 $9.00 $1,080.00 $20.00 52.400 00 50 6" Pin -on Curb LF 450 $35.00 $15,750.00 $39.00 $17,550.00 $28.00 S12.60.0.00 51 Decorative PCC in Island SF 1615 $15.00 $24,225 00 $9.00 $14,535 00 $10.00 $1 r,,150.00 52 6" Curb LF 140 $32.00 $4,480 00 $39.00 $5,460.00 $35.00 44,1:1C ! tx1 53 PCC Sidewalk SF 250 $12.00 $3,000 00 $16.00 $4,000.00 $10.00 12.5r40 00 54 Curb Ramp EA 4 $3,500.00 $14,000 00 $2,400.00 $9,600 00 $3,000.00 $12,000 00 430 of 498 Bid Results for Sewer Line Replacement and Upsizing Project (CIP No. 16-05) PORTILLO CONCRETE, INC. 1 PAL GENERAL ENGINEERING, INC Non -Responsive BALM FNCi1N1ERII ONSTRL1CTiON COMP 4 t11 C item No. Description Unit Qty. Unit Price Extension (Quantity x Unit Price) Unit Price Extension (Quantity x Unit Price) Unit Price Extension (Quantity x Unit Price) 55 8" AC Dig Out and Replacement TON 350 $190.00 $66,500 00 $180.00 $63,000.00 $220.00 S71,000 00 56 2" AC Grind SF 1E+05 $0.30 $36,300.00 $0.30 $36,300 00 $0.35 _41,3Si) 00 57 2" AC Overlay TON 1550 $115.00 $178.250.00 $95.00 $147,250.00 $98.00 S151,100 00 58 Restore Existing Striping and Pavement Markings LS 1 $15,000.00 $15,000 00 $15,100.00 $15,100.00 $14,000.00 $1-1,000.0 59 Plant Mix Type II REAS Slurry Seal GALLI 2380 $10.00 $23,800,00 $8.50 $20,230.00 $10.00 $23.800.00 60 Traffic Loops EA 45 $400.00 $18,000.00 $375.00 $16,875.00 $400.00 $18,000.007 61 Field Orders (Allowance) AL 1 $10,000.00 $10,000.00 $10,000.00 $10,000.00 $10,000.00 510,000 00 Subtotal $1,746,425.00 $1,268,195.00 $1,775,900.00 Total $2,496,925.00 - $1,977,475.00 $2,386;30O.00 431 of 498 SEWER REPLACEMENT & UPSIZING FOR: NATIONAL CITY BLVD & EAST PLAZA BLVD CITY OF NATIONAL CITY, CALIFORNIA VICINITY MAP: PLAZA BLVD, EX-P2 VICINITY MAP: NATIONAL CITY BLVD, EX-P4 RESOLUTION NO. 2016 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AWARDING A CONTRACT TO PORTILLO CONCRETE, INC., IN THE NOT TO EXCEED AMOUNT OF $2,496,925 FOR THE SEWER LINE REPLACEMENT AND UPSIZING PROJECT, AUTHORIZING A 15% CONTINGENCY IN THE AMOUNT OF $374,538.75 FOR ANY UNFORESEEN CHANGES, AUTHORIZING THE MAYOR TO EXECUTE THE CONTRACT, AND AUTHORIZING THE APPROPRIATION OF $1,500,000 TO THE SEWER UPSIZING CIP ACCOUNT FROM SEWER SERVICE FUND BALANCE WHEREAS, the Sewer Line Replacement and Upsizing Project represents the first phase of improvements to increase capacity and efficiency of the sewer collection system citywide and includes replacement of 21-inch, 12-inch, and 8-inch diameter PVC sewer main, manholes, sewer laterals; cold -mill grind and overlay of existing road section for Plaza Boulevard, as well as National City Boulevard from and including the intersection of Mile of Cars Way through the intersection of 22' Street; installation of curb and gutter, AC dikes, AC driveways entrances and driveways; sidewalks, pedestrian curb ramps for ADA compliance, signing and striping, and other related improvements; and WHEREAS, on July 13, 2016, the Engineering Department publicly opened, examined, and declared four (4) sealed bids for the Sewer Line Replacement and Upsizing Project; and WHEREAS, Portillo Concrete, Inc., was the lowest responsive, responsible bidder qualified to perform the work as described in the project specifications with a total bid amount of $2,496,925; and WHEREAS, a 15% contingency amount up to $374,538.75 for any unforeseen changes to the Project is requested. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby awards the contract for the Sewer Line Replacement and Upsizing Project to the lowest responsive, responsible bidder, to wit: PORTILLO CONCRETE, INC. BE IT FURTHER RESOLVED by the City Council that the Mayor is hereby authorized to execute on behalf of the City a contract in the amount of $2,496,925 with Portillo Concrete, Inc., for the Sewer Line Replacement and Upsizing Project. Said contract is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the City Council hereby authorizes a 15% contingency amount up to $374,538.75 for any unforeseen changes to the Project. BE IT FURTHER RESOLVED that the City Council hereby authorizes an appropriation of $1,500,000 to the Sewer Upsizing CUP Account from the Sewer Service Fund balance. [Signature Page to Follow] 433 of 498 Resolution No. 2016 — Page Two PASSED and ADOPTED this 16th day of August, 2016. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor 434 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 435 The following page(s) contain the backup material for Agenda Item: Temporary Use Permit — Pumpkin Station hosted by Pinery Christmas Trees, Inc. at Westfield Plaza Bonita Mall from September 23, 2016 thru October 31, 2016 with no waiver of fees. (Neighborhood Services) 435 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 AGENDA ITEM NO. ITEM TITLE: Temporary Use Permit — Pumpkin Station hosted by Pinery Christmas Trees, Inc. at Westfield Plaza Bonita Mall from September 23, 2016 thru October 31, 2016 with no waiver of fees.] PREPARED BY: Dionisia Tre!o ° DEPARTMENT: Neighborhood Services Department PHONE: 0619) 336-425 APPROVED BY: EXPLANATION: This is a request from Pinery Christmas Trees to host the annual Pumpkin Station at Plaza Bonita Mall from September 23, 2016 thru October 31, 2016. Daily hours will be from 9 a.m. to 9 p.m. Pumpkin Station will be located on the eastside parking lot #7 of the mall adjacent to Ring Road. This event is a pumpkin patch and a children's carnival combined catering to children between the ages of 2-9. Event will include a kid's play center and several rides, an inflatable pumpkin jump and a petting zoo. Plaza Bonita Mall security will be used during event hours_ This is the 13th year for the Pumpkin Station at Plaza Bonita Mall. FINANCIAL STATEMENT: ACCOUNT NO. The City has incurred $237.00 for processing the TUP. plus $1,100.00 for Fire permits fees Total fees are $1,337.00 ENVIRONMENTAL REVIEW: I N/A ORDINANCE: INTRODUCTION: I 1 FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Approve the application for a Temporary Use Permit subject to compliance with al! conditions of approval with no waiver of fees. BOARD I COMMISSION RECOMMENDATION: ATTACHMENTS: !Application for a Temporary Use Permit with recommended approvals and conditions of approval. gib of f:ib 800112,MIA rAri (IA 4ek,i ❑ Fai;Fe et City of National City E•Nefphborttocd Services Drpsrbrlerrt 1243 Ndortal City Boulevard ■ Noland City, CA 91950 (519) 336.4354 ai fax (519) 3354217 www.netionstityce.gav Special Event Application ❑ Parade/March 0 Wet or Run ❑ TUP ❑ Sporting Event 0 Outer (specify) EZEMBIBEMIN Evert Tide Pumpkin Station Event Location as being requested) Westfield Plana B tits MEM Set -Up Starts Date wie Event Stabs Data era Event Ends Date !aim Bresdrcierm Date „one Time 8:00am Day of Week Friday Thrie 9:00am Day ofweeh Friday Time 9:00 pm pay, , Meek Monday Time 5:00 pm Day ofWeek Saturday Applicant (Your name) Norm Osborne Sponsoring Otgantratbn Pinery chrism a Tne.% Ira Event Coordinate di irrent*cm ti Michael Osbome Mang Address 10585 Brookview Lane, San Diego, CA. 92131 Day Phone Alter Alter hours Phone same �i741 808-6.9576 Gel Fax Public mfonnelon tone 858-566 7466 Elnd nosbotnl ftsan.rr.com Applicant to Invaifapate, dermal, Mondry and told harmless the City, Its ooRcsrs, employees errd agent from and weird any and al toter, dam, iability, adulate, demands, r, harts, ate, charges, asperse (Inducting s ) and our of anion of any chance gho CAT. Its orlon. employees and ants rosy Incur, auetain or be subjected to on account of loran or damage to property or The tone of use its and for body injury to or death of any .. (tnoludlnn but not Imitmd to the entployen, settcortmecom, c wls end lmritaaa of each party hereto r out of or In Bury asy connected to the occupancy, aaajoymerrt and use of any CIty premises under this :. - -. >, - to the meant permlfted by Wt. The undersigned also N and Y Y.. , poky tar opplcollon procassiri gni Wily ima and that tees and Signature ofMa to orange. Date 7 r{ C 437 of 498 Special Event Application (continued) Please complete the fall ring eectkins vAth as much detail ss possible since fees and requimmercts are based on the infonnatiOn you provide us. ❑ First time event El Returning gent ❑ inc:bxie site map with application Note that this description nary be published in our Cyr Public Special Events Calendar. Pumpkin Station is a pumpkin patch and a children's carnival combined. We cater to children age 2 - 9 years old. We offer numerous rides including a train ride, swing ride. car ride, skyfighter dde, inflatable alkies and jumps. play center and a petting zoo. We also offer Group Packages to local schools, day care centers and other children groups. This is our 18th year of experience and out 13th at Plaza Bonita in National City. Anticipated # of Participants: Arviicipated #of Spectators: Trdfnr. C.c iir .3 .cr,rity. First Aid !at.:t :� t;ililr Requesting to dose streaks) to vehicular traffic? Yee 0 No W List any s#roe#e requiring closure as a result of the event (pnoride map): Date and tine of sheet closure: _ Date and time of meet reopening: p Other (explain)._...._ Requesting to post "rro parking" notices? Yes 0 No ❑ 0 Requested 'No Parking" on city streets andior parldng lots (llat streets/peeing ) (provide map): ❑ Other( in) 438 of 498 IMIEMERMINEM Depending on the number of participants, your event may require Poke serif:es. Plane de.cdbe your procedures for boar Crowd Control art! hernial Security: a use estfl ld Mali security as needed. Have you hired Professional Security to hand* security arrangements tbrthis event? Yee 0 No IN tf YES, name and address of Security Organization Security Director Mame): Phone: if using Ste services of a security him AND the evert wN occur on Ctiy , please P copyo Sher 0. "Manning ilabliv h 1 m1+s of talent perfront ciders ae gr , at well as and add "trailed condotat0Ment ofhltagnal CliMis abets, as > of InleralliCe nod be d byte vendor or di into the Glee Rink bianingsrfor reAsse end;reproved .;Warta the event. Is this a night event? Yea N!o 13 WYES, please state how the event aruf &wounding area be Its to ewe safety drthe partiotenbt and : We use halogens, string lights and light hers. Depending on the number of participtetta, your evert may require specific toast Aid eeervives, Rat aid Matra to to staffed by avert sty Yes ❑ No ■ First aidfcPR certified Yes D Pio 13 El Feat aid station to be staff by professional camper* fu• Company Please describe your Accessibility plan for acmes at your event by lndtvkluels with dtsab +s: We have 5 Handicap Parking Spaces reserved at the entrance to the facility. 439 of 498 ICEMISIZIMME Seeking up a stags? Yee ❑ Non ❑ Reap City's PA system ❑ Requestk,g City Sty; if yes, which size? ❑ Dimensions (13x28) ❑ Dimensions (20)28) ❑ Applicant pry own stage 10- (Dimensions) Setting up tables and chairs? ❑ Furnished by Applicant or Cordractor d of tables ® NO tables being setup # ct chairs ® No chairs b g sat up ❑ (For City Use Drily) Sponsored Events — Does not apply to c3oiponsored events p of tables 0 No tables being set up d of chairs 0 to dare being set up Contractor Name Contractor Contact In mer:inn Address C4yeanda Pt a Number Sewing up other equipment? ❑ Sporting Equipment (explain) ❑ Other (explain) © Not Ming up any equument Iced above at event Having ernprnied sound andror music? Yes © No m1 ❑ PA System for announcements 0 CD player or DJ mualc 0 Live PAust ► 0 Small 4-5 ice We band P. 0 Large 8+ piece Iva band ❑ Other (explain) if using one music or a DJ. ► Cyr Name Address ctskate Phone Number using lighting equdpreent at your event? Valli No ❑ • Bringing in own lighting equipment 0 Using professional lighting company ► Company t4wne AWNS!, City/State Pter►e Number 440 of 498 • tieing efectrical power? Yenta ig No ❑ UBIfig on -site &ectriclty 1I For sound endlor lighting 0 For food air refrigeration O Bringing generators) ❑ Forsound aasdlor lighting in For food and1orrefrigeration PLEASE NO1E: You may 6e required to apply fora temporary health pundit E food or beverages &re sold of given away during your special event. Also isrl /Permits and Compliance' on page B In the Special Ewent Guide. For addlional ierformadon on obtaining a teary health per, pie= combat the Ocunf.y °leen Diego Enviaeuneastei Nest& at ( $. Having food and non-alcoholic bevaragas at your event Yes 0 Non Q Vendors preparing food on -sibs 304 �^ ► Business Llcenee # If yee, please descry how food will be served aarrdior prepared: ❑ Vendors bringing pre -packaged food ► # ► Business License # O Vendors bringing bottled, non-alcoholic beverages (I.e., bottled water. can soda, etc.) ► # ❑ Vendors selling food # ! Business License a (s) ❑ Vendors selling merchendia e # D Business L eruo #�s} ❑ Foodbeveragss to be handled by organization; no outside vendors ❑ Vendors selling servbes # ► Business License #(s) ► Explain services ❑ Vendors passing out information only (no business license needed) iif ► Expo types) of infommtlon IN No smiling or Irtformetio.nal mare et event Faring children activities? Yes No❑ PLEAS NOTE: in tree wept inftstabb Jumps we prod at the, event, The City of Nallonsil City regidres Olnirreirtial liebBitylneurence with Mita of at beet $1 Mon Edon per oc curro &$2 Million ors aggregate, In addition, the City of NeCionei City must be rimed as en Md . net Insured pumufmt to a separate endorsement, which sib be provided by tits vendor or Ito frtsurerto the Ws Frisk Manager, along with the Cer "tn t of Inge% for approval prvortewont, Tin appifon should be filed cut ell Maslow week prior to the eve. Them is a $►25 fee to Process the Pent* eggINCOEtr For quesSztris er obis as oapy eta 'Pact* Use ApplicegloW, please i ntac t the EnginearingfPublb Dories Beewtment ef (819) 336-45110. ▪ Intisdable boultce/13° rss # 0 Rock dubbing wall Height p Intl ble bouncer slide # . p As & cleft Ce., craft making, tece palm, .) ❑ Other 441 of 498 Having firaworb or aerial display? Yes ❑ No In ❑ Vendor name and license # Dimensions. Duration Number of shells Max. size PLEASE E: to the event fireworks or another aerial ,display is planned for your event, The City of NoNowt requires commercial Nobility insurance with finite of at least $2 Mlllbn dolts per occurrence/ Million dollars aggregate. ln addition, the Cityof National City must be named as an Addtionel insured pursuant to ea sepal/ate endorsement, why shad he previded by the vendor or fts 'insurer to the Cis l Merin, dong with the Cortlficale of insurance, for approvd pew to the event. Depending on the the anchor nature of the hawaits der, the reserves the fight to request higher liability NOW The vendor must also own a fireworks pe from the National City Fire Department ands cost is Ar*ngkig for media coverage? Yee f No ❑ Yes, but media will not require special set-up ❑ Yes, media will require special set-up. Describe Event. Sign;Nc PLEASE NOTE:, For City sponsored or eventsi banners pubkizing the event may be placed on the sodding poles on the 1800 bi ck and 3100 Wok of National City S The banners must be rude to the City's specifications. Please rite to the i 'e Special Event Guidebook and Fee Schedule for additional irdormation: Are you planning to have signage at your event? Yes il No ❑ Yes,'we will post signage # Dimensions $' ❑ Yes, having inflatable signage # ► (complete Inflatable Signage Request form) ❑ Yes, we will have banners* ❑ What will signslbanners ❑ How will signs/banners be anchored or mounted? ratellEMEIn PLEASE NOTE One tags# for every 250 people is requited, unless the applicant can show that there are saga locales in the inenediiets arse available to the pubic during the event. Are you planning to provide portable restroorns at the event? Yes In No ❑ If yes, please identify the following: 1 Total number of pore toilets: 4 1 Total number of ADA accessible portable toil. 1., . _ Costing with portable toilet vendor. ►Essential Services 877-317-464 Company ► Load -in Day & The Daily ► Load -out Day & Time Mora ❑ Portable toilets to be srervioed. t► Time Daily 442 of 498 cut-up, Sreakclowill, lea11-11IS. Setting up the tiny before the event? ❑ Yes, will set up the day babe the event. ► # of set-up day(s) ❑ No, set-up will occur can the event day Requesting vehicle access onto the turn ❑ Yes, requesting acts onto turf for set-up and breakdown (complete attached Vehicle Access Request form) O No, vehicles will Iaadlunlaad from nearby street or parking lot ._i.r .I-_j.I's _ 'e.�.€ ❑ City to Inaba Etter fence ❑ Applicant to Install Ater fence ❑ N!A 8roaldng deem setpue the day after the event? © Yes, breakdown wNl bete day alter the event. ► # of breakdown day(s) ❑ No, breakdown WI occur on the event day. How are you handling clean-up? ❑ Using City crews ❑ Using volunteer Mean -up crew during end after event. ❑ Using professional cleaning company during and after event. Lases list anything important about your event not already asked on this sunk:elm: Please make as copy of this application for your records. We do not provide copies. 443 of 498 - tti 141'11i1fiA NATIONAL zacemaiirep I. Spada! Event Information Special Events Pre -Event Storm Water Compliance Checklist Name of Special Event: Punkin Station EventAddrmss: 3030 Plaza 5onita Road Event Flostiroordinator: Kthael Expected g of Attendees: Phone Number:. 868 -1701 II. Storm Water Best Management Practices (BMPs) Review YES NO N/A WIN enugh trash cans provided far the event? Pmvldenunber of trash bins. 8 7 ma enough recycling bins provided fort e event? Provide number of mode him 2 WIN all portable toilets have secondary containment trays?(exceptions for AM compliant potable toilets) 7 Do alt stone drains have screens to temporarily protect trash and debrb from entering? t Are spill cleanup bits rely available at designated spots?7 * A Post -Event Storm Water Compliance Cheddist will be completed by Oily Seat 444 of 498 City of National. City PUBLIC PROPERTY USE HOLD HARMLFeSS AND INDEMNIFICATION AGREEMENT EMENT Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combind Angle limit insurance for bodily injury . and property damage which includes the City, fts officials, agents and employees named es additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit. The Insurance company lssulr•g the insurance policy must have a A.M. Bests Guide Rating of Mill and that the insurance cornpany le a California admitted company, If not, then the Insurance policy to the issuance of the permit for the event. The Certificate Holder must reflect: City of National City Risk Management Department 1243 National City Boulevard National City, CA 91950 aniz rn: Pinery Christmas Trees, inc. dba Pumpldn Station Person in Charge of Activity: Michael Osborne Address: 10665 Brookview Lane, San Diego 92131 Telephone: Date[ss) of Use: J IOLD HARMLESS AGREEMENT As a condftlon of the issuance of a temporary use permit to conduct its activities on public or private property, the smdersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and theParking Authorfly and its officers, enwtoyees and agents from and against any and all claims, demands, costs, loans, liability or, for any personal injury, death or property dame, or both, or any llflgatiore and other Ilabilky, Including attorneys fees and the oasis of litigation, arising out of or related to the use of public pro . - or the activity taken under the permit by the permittee or its agents, erupt .. ,'f or con Signature of Applicant: Official Tits: n ! re,L, Date:' -if-,/ Certificate of Insurance Approved Date 445 of 498 PINECHR-02 TSALAZAR A EY CERTIFICATE OF LIABILITY INSURANCE THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: if the certificate holder Is an ADDITIONAL INSURED, the policy(Ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement an this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER License # 0757776 HUB International insurance Services Inc. 5405 Morehouse Drive San Diego, CA 92121 INSURED Pinery Christmas Trees Inc. DBA: Pumpkin Station P.O. Box 26070 San Diego, CA 92196 COVERAGES CERTIFICATE NUMBER: °ME cT NAMTerry Salazar PHONE S66 8338614-I (F 619 568-3339 PAIL E Exq:{ ) (AJC,No]: Ao aes: terry.salazar@hubinternatlonal.com IMSURER(S) AFFORDING COVERAGE INSURER A: Burlington Insurance Company INSURER B : Redwood Fire and Casualty Insurance Company NAIC 23620 11673 INSURER C : National Union Fire Insurance Company of Pittsburg, PA 19445 INSURER D:State Compensation Insurance Fund of California INSURER E INSURERF: REVISION NUMBER: 35076 THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWPTHSTANDING ANY REQUIREMENT TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, INSR R TYPE OF INSURANCE ADDL SUBR POLICY EFF POLICY EXP LRANMIDDJYYYY) A EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INS° WVD POLICY NUMBER IMMPDDIYYYYI {M X HIRED AUTOS X I COMMERCIAL GENERAL LABILITY 1 CLAIMS -MADE rX I OCCUR BI/PD Ded: $5,000 GEN'L AGGREGATE LIMIT APPLIES PER: x , POLICY UERCTT LOC OTHER: AUTOMOBILE LIABILITY ANY AUTO ALL OWNED n SCHEDULED AUTO. AUTOS S X NON -OWNED AUTOS 930BW35002 01TRM00591103 03/1912016 0311912016 0311912017 03/1912017 UMBRELLA LMAB EXCESS LIAR OCCUR CLAIMS -MADE DED RETENTION $ EBU026141107 0311912016 03/19/2017 WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETORJPARTNERIF]<ECUTIVP OFFICER/MEMBER EXCLUDED? (Mandatory 1a NH) If yes, describe under DESCRIPTION OF OPERATIONS below YIN YI NIA 913727815 07/19/2015 07/19/2016 DATE (MMIDDJYYYY) 3/17120/6 LIMITS EACH OCCURRENCE $ 1,000,000 DAMAGE TO RENTED PREMISES (Ea occurrence) $ 1 oo,DOo- MED EXP (Any one person) $ 2,500 1 PERSONAL & ADV INJURY $ 1,000,000 GENERAL AGGREGATE $ 2,000,000 PRODUCTS -COMP/DP AGG S 2,000,000 $ COMBINED SINGLE LIMIT , (Ea accident) $ 1000,000 ' BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE ( er accident) $ $ EACH OCCURRENCE $ 1,000,000 AGGREGATE $ 1,000,000 $ $ X ST TU7E I, ER' E.L. EACH ACCIDENT $ 1,000,000 E.L. DISEASE -EA EMPLOYEE $ 1,000,000 $ 1,000,0021 E.L. DISEASE- POLICY LIMIT DESCRIPTION OF OPERATIONS/LOCATIONS i VEHICLES {ACORD 101, Additional Remarks Schedule, may be attached N more apace to required) Certificate Holder is named as Additional Insured to the General Liability per written contract, agreement or permit per policy form #GSG-G-010 08-09. CERTIFICATE HOLDER City of National Clty 1243 National City Blvd National City, CA 91950 CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ACORD 25 (2014101) al 1988-2014 ACORD CORPORATION. All rights reserved. The ACORD name anri Innn are rn istered marks of ACORD 446 of 498 1 W gl id Playa Bonita 8030 PleoIl Bonita Road Suite 2075 San ®Eel CA 91960 T (819) 287 F (619) 472-5852 July 7, 2016 City of National City Attention: Vianey Rivera Neighborhood Services Division 1243 National Oty Bouleard Natdonal City, California n495.4301 Re: Temporary Use Permit Pumpkin Station —Westfield Plaza Bonita Dear Ms. Rivera: I hereby authorize Norm Osborne, acting as representative of Pinery Christmas Trees, Inc., to operator a business known as Pumpkin Station in parking lot #7 at Westfield Plaza Bonita during the dates of September 2,, 2016— November 6, 2016. Norm Osborne has permission to Install temporary power to poles In parking lot #7 to provide power during the temporary use time if adequate power is not already In plane. Norm Osborne will obtain ail necessary perm its from National City for occupancy at Westfield Plaza Bonita. Please feel free to call me If you have any questions at 619.267.2850. Sincerely, Mtchapf R6sc:o, Geneyal Manager Westfield Plaza Bonita Cc: retallersfile 447 of 498 r 20 it -k "RAIXoz Scirnar)1111- PA-07 0-4W(N_)1,_ Thrc4 Mivw wrfito al six rr 2M/ &eiV.. ezik0 < itlYPV4141 > Axitimir BloYv- OglEgetlel 448 of 498 1-016RAN BoorrA mu 24113 STitne0 V4A-1/4.) 0401 PIttiO arri Ov- (1\117 201C- 1-46,1415 A .H12C Vin INS9f5tilfz-5 airApy) • • ca 1.0, • -,va ...N. • • . • ammo.. c,,ftcooptss 1.4 I ' Icetvx 13e-Alm-1, 4. 41C Tv/ CA-aoPi —A ,-_-- :::•)e3C1 Eft,Ire4ortarz-revYr- ---5 27 X20 --MOn -r-P3T- - 20-/-40 Vtc, 'Thor - 2(1) vt-10 W-rriNN7 R7eir) "Mir' ILVp '5 4 :7,i3rttorriok-3tx:fs 1 -rsi.AtC3 - iAns9 ----- tZ, - 1.70.,Ar 7 Cpiie7-1 - Cikr4 Vx0,5 - cLi si Cci.JVC Tea?! 0 tr. 1i73,60 1,3 449 of 498 Event / .4‹ / / 1 1 • /pi • • j. irt•"•‘• • 011111/11/1111th ..\\\ I %.10 0 Nh% 1 r 00' • •IMEr. 0.1,11111. CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DEPARTMENT APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: Pinery Christmas Trees, Inc. EVENT: Pumpkin Station DATE OF EVENT: September 23, 2016 thru October 3`I, 2016 APPROVALS: COMMUNITY SERVICES YES [ ] NO [ x ] SEE CONDITIONS [ ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ x ] DEVELOPMENT SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ x ] PUBLIC WORKS YES [ ] NO [ x ] SEE CONDITIONS [ ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ x ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ x] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ x ] CONDITIONS OF APPROVAL: DEVELOPMENT SERVICES Engineering Applicant shall fill out the Pre -Event Storm Water Compliance Checklist prior to date of event and submit the completed form. The Parks Division will fill out the post event form, and not the applicant. FINANCE Pumpkin Station has a current business license. No other stipulations for this event. POLICE (619) 336-4400 Stated Plaza Bonita Mall security is sufficient. Depending on calls for service, the Police Department will provide "extra patrol" as is possible. CITY ATTORNEY Requires an indemnification and hold harmless agreement, and a policy of general liability insurance, with the City and its officials, employees, agents and volunteers as additional insureds, with amounts of coverage to be determined by the Risk Manager. 451 of 498 1' RISK MANAGER • Provide a valid copy of the Certificate of Insurance wherein the City of National City, its officials, agents and employees are named as an additional insured by way of an endorsement. • The insurance policy must have incorporated into it a hold harmless and indemnification agreement. • The insurance policy must have a combined single limit of no less than $1,000,000.00 (ONE MILLION DOLLARS) for each occurrence and $2,000,000.00 (TWO MILLION DOLLARS) in aggregate that would cover the date and location of the event. • The insurance company issuing the insurance policy must have a A.M. Bests Guide Rating of A:VII and that the insurance company is a California admitted company; if not then insurance policy must be submitted to the Risk Management Department for review and approval prior to the issuance of the Temporary Use Permit. The Certificate Holder must reflect: City of National City clo Risk Manager 1243 National City Boulevard National City, CA. 91950-4397 • Name, address and contact information for the broker providing this insurance policy must be on the face of the Certificate of Insurance. FIRE (619) 336-4550 INSPECTION REQUIRED $500.00 FEE FOR CARNIVALS, $400.00 FEE FOR CANOPIES PLUS AN ADDITIONAL $200.00 INSPECTION FEE FOR INSPECTIONS OCCURING AFTER HOURS OR ON WEEKENDS OR HOLIDAYS Stipulations required by the Fire Department for this event are as follows; 1) Access to the area to be maintained at all times. 2) Fire Department access into and through the booth areas are to be maintained at all times. Fire apparatus access roads shall have an unobstructed width of not Tess than 20 feet and an unobstructed vertical clearance of not Tess than 13 feet 6 inches. 3) Participants on foot are to move immediately to the sidewalk upon approach of emergency vehicle(s). 4) Vehicles in roadway are to move immediately to the right upon approach of emergency vehicle(s). 6) Fire hydrants and fire department connections shall not be blocked or obstructed at any time. 452 of 498 6) Exit to be maintained in an obstructed manner at all times. Exit way to be clear of all obstructions. 7) Exits to be posted EXIT. 8) No open flames or smoking inside or adjacent to the tent/canopy, Signs to be posted - NO SMOKING. 9) Extinguishers to be mounted in a visible location between 3W1z' to 5' from the floor to the top of the extinguisher. Maximum travel distance from an extinguisher shall not be more than 76 feet travel distance. All fire extinguishers to have a current State Fire Marshal Tag .attached. Extinguishers shall be mounted in conspicuous area inside tent or canopy. Please see attached example. 12) Automobiles and other internal combustion engines shall be a minimum distance of twenty feet (20) from all tents and canopies. 13) Any electrical power used is to be properly grounded and approved by the Building Official. Extension cords shall be used as "temporary Wiring" only. 14) Internal combustion power sources that may be used for "Light Towers" shall be of adequate capacity to permit uninterrupted operation during normal operating hours 15) intemal combustion power sources shah be isolated from contact with the public by either physical guards, fencing or an enclosure 16) If tents or canopies are used, tents having an area in excess of 200square feet and or canopies in excess of 400 square feet or multiple tents and or canopies placed together equaling or greater than the above stated areas, are to be used, they shall be flame-retardant treated with an approved State Fire Marshal seal attached. A ten feet separation distance must be maintained between tents and canopies. A permit from the Fire Department must be obtained. Cooking shall not be permitted under tents or canopies unless the tents or canopies meet `State Fire Marshal approval for cooking, Certificate of State Fire Marshal flame spread shall be provided to the . National City Fire Department if applicable, Canopies: 0 — 400 sf - $0 401 — 500 sf $250.00 501 — 600 sf - $300.00 601 — 700 sf - $400.00 453 of 498 Tents: 0 —200 sf - $200.00 201 -- (+) sf - $400.00 17) Bales of Straw and Corn Stalks shall meet the requirements for "Flame Propagation and Flame Spread". Proof of product used shall be furnished to the National City Fire Department prior to opening day. An inspection and test on materials used will be required prior to opening day 18) A fire safety inspection is to be conducted by the Fire Department prior to operations of the carnival to include all rides, cooking areas, game booths, etc. 18) Fees can only be waived by City Council. 19) First Aid will be provided by organization Note: Organizer shall contact the National City Fire Department for cost associated with this event 454 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 455 The following page(s) contain the backup material for Agenda Item: City Council direction regarding parking options for El Toyon Park parking lot. (Engineering/Public Works) 455 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 AGENDA ITEM NO. ITEM TITLE: City Council direction regarding parking options for El Toyon Park parking lot PREPARED BY: Stephen Manganiello PHONE: 619-336-4382 EXPLANATION: See attached explanation and presentation. DEPARTMENT: Engineering/Public Works APPROVED BY: 74V FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: NIA ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Provide direction to staff regarding parking options for El Toyon Park parking lot BOARD 1 COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1 Explanation 2. Presentation 456 of 498 EXPLANATION In Fall 2013, as part of public outreach for National City's Capital Improvement Program (CIP), staff presented conceptual improvement plans for all three Community Parks to the Neighborhood Councils and the Parks, Recreation & Senior Citizens Advisory Board (PRAB). Staff also participated in "one-on-one" meetings with residents upon request. In regards to proposed improvements for El Toyon Park, residents requested opening the gates on weekends to allow for public parking in the park. They mentioned that the surrounding streets become flooded with parked cars, especially when the multi- purpose field is in use for football games. Staff discussed the potential for installing programmable gates to better control access. While the general consensus from the Neighborhood Councils and PRAB was that the option to install programmable gates was a good solution to addressing the demand for parking in El Toyon Park on weekends while providing control measures to deter overnight parking, a handful of residents living on E. 4th Street adjacent to the park expressed opposition to allowing parking in the park on weekends. Primarily, they had concerns regarding noise and the potential for criminal activity. On September 1, 2015, City Council approved Resolution No. 2015-136 awarding an approximately $3.5 million contract to Western Rim Constructors, Inc. to construct public improvements at both Kimball and El Toyon Parks. Improvements at El Toyon Park include new park restrooms, public safety cameras and programmable gates to allow for public parking in the park on weekends. The programmable gates have been installed and are currently being operated manually until testing and training are complete, which should be within the next few weeks. The gates currently remain closed from 4:00pm to 7:O0am Monday through Thursday, and from 4:O0pm Thursday through 7:00am Monday. Park hours per City Ordinance are 7:ODam to 9.00pm daily. The attached presentation provides and exhibit with details regarding the following three options for City Council consideration: Option 1 — Place bollards at curved portion of "horseshoe" • Option 2 — Place bollards at curved portion of "horseshoe" for north leg and further west for south leg ▪ Option 3 — No bollards All options consider gates remaining open daily, during park hours. Staff seeks City Council direction regarding parking options for the El Toyon Park "horseshoe" parking lot. if Council directs staff to install bollards, planter boxes could be used as an alternative. Maintenance of the planter boxes could be included as part of the Community Garden program. 457 of 498 "ark Improvelid Public outreach for El Toyon Park Improvements started in Fall 2013 - Neighborhood Council meetings; Parks, Recreation & Senior Citizens Advisory Board (PRAB); "one-on-one" meetings with residents Residents requested opening the gates on weekends to allow for rpublic parking in the park A handful of residents living on E. 4th Street adjacent to the park expressed opposition to opening the gates on weekends -- concerns regarding noise and potential criminal activities City Council awarded a construction contract in September 2015 to install new park restrooms, public safety cameras and programmable gates to allow for public parking in the park on weekends - programmable gates have been installed Gates are currently closed from 4:OOpm to 7:00am Monday through Thursday, and from 4:00pm Thursday through 7:00am Monday 6 Park hours per City Ordinance are 7:00am to 9:OOpm daily City Council Meeting - August 16, 2016 458 of 498 Existing handicap parking spaces- 1 Community ,�,arcen Fesidr rr:ial iir.rnes Existing parking spaces_ 37 Existing handicap parking spaces: 2 New park restrooms Existing parking space;_ 18 LEGEND Programmable Gates (open during park hours) Option 1 (red bollards): 78 parking spaces ■ • . d Mf Option 2 (blue bollards): 57 parking spaces Option 3 (no bollards): 118 parking spaces City Council Meeting - August 16, 2016 459 of 498 Option 1 (Place bollards at curved portion of "horseshoe") Allows for paved play area for children Loss of 40 parking spaces Option 2 (Place bollards at curved portion of "horseshoe" for 6 north Ieg and further west for south Ieg) Less vehicles in proximity to residential homes Less accessible parking for community garden Loss of 61 parking spaces Would require conversion of 2 parking spaces to allow for 1 van accessible handicap parking space • Option 3 (No bollards) Maintains 118 parking spaces for public access to park More vehicles in proximity to residential homes .AII Options - gates to remain open daily, during park hours City Council Meeting - August 16, 2016 460 of 498 Toyon Park -Parking Option f Staff is seeking City Council direction If City Council directs staff Co install bollards, planter boxes could be used as an alternative -maintenance of the Plante boxes could be included as part of the Community Garden program. City Council Meeting - August 16, 2016 461 of 498 Existing parking spaces: 17 Grrr1?TR]riity argon IRr=;TIjnt€al homes Existing parking spaces: 37 Existing handicap parking spaces: 2 Lxisling handicap parking spaces; 2 Existing parking spaces: 16 New park restroonis Basting parlkir~g spaces: 40 LEGEND SS Programmable Gates (open during park hours) Option 1 (red bollards): 78 parking spaces Option 2 (blue bollards): 57 parking spaces Option 3 (no bollards): 118 parking spaces City Council Meeting - August 16, 2016 462 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 463 The following page(s) contain the backup material for Agenda Item: City Council Policy # 118 - City Council attendance at staff -level working groups. (City Manager) 463 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 AGENDA ITEM NO. ITEM TITLE: City Council Policy #118 - City Council attendance at staff -level working groups PREPARED BY: Leslie Deese, City Manager DEPARTMENT: City Mana PHONE: , 336-4240 I APPROVED BY EXPLANATION: At the August 2, 2016 City Council meeting, Councilmember Mendivii requested this item return for Council discussion at the August 16, 2016 meeting. Background: At the June 21, 2016 meeting, the City Council adopted Policy #118, after discussing their attendance at staff -level working groups, the process to be used when more than two members desire to attend working group meetings, and clarifying that the position of Mayor would have the first right of refusal to attend. The Council previously discussed the subject on June 7, 2016, May 3, 2016, April 19, 2016, and May 19, 2015 (staff reports attached). FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Request Council direction. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1) City Council Policy #118 2) Staff reports for June 21, 2016, June 7, 2016, May 3, 2016, and May 19, 2015 3) Minutes of April 19, 2015 1464 of 498 465 of 498 COUNCIL AGENDA STATEMENT MEETING DATE: June 21, 2016 AGENDA ITEM NO. 30 ITEM TITLE: resolution of the City Council of the City of National City adopting City Council Policy #118 - City Council attendance at staff -level working groups PREPARED BY:: Leslie Deese, City Manager DEPARTMENT: City Manager PHONE: i 336-4240 I APPROVED BY EXPLANATION: At its June 7, 2016 meeti g, the City Council discussed City Council attendance at staff -level working groups and the process t� be used to select the members (s) who would attend the working group meetings. The revised policy is provided for City Council's consideration. The Council previously discussed the subject on June 7, 2016, May 3, 2016, April 19, 2016, and May 19, 2015 (staff reports attached). FINANCIAL STATEMENT: ACCOUNT NO. NIA! ENVIRONMENTAL REVIEW: IN/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution BOARD / COMMISSION RECOMMENDATION; ATTACHMENTS: 1) City Council Draft Policy #118 2) Staff reports for June 7, 2016, May 3, 2016, and May 19, 2015 3) Minutes of April 19, 2016 466 of 498 467 of 498 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: City Council Attendance at Staff -level Working Groups POLICY # 118 ADOPTED: June 21, 2016 AMENDED: Background: The City of National City operates under the council-manager form of government. The council is the legislative body that represents the community, is empowered to formulate citywide policy, and can establish boards, committees, commissions, and other groups. The city council is comprised of the mayor and four councilmembers. The city manager is responsible for the administration of city affairs, day-to-day operations, implementation of council policies, and is the liaison between the city council and city staff. On occasion and as needed, the city manager may form a working group of subject matter experts to assist in certain matters. Based on the city manager's responsibilities, the working group's need, establishment and composition is determined by the city manager. This type of working group is separate and distinct from a working group or other type of group which is formed by action of the City Council. This Policy is limited to City Manager formed working groups. The lifespan of a working group can last anywhere between a few months to several years. Such groups have a tendency to develop a quasi -permanent existence when the assigned task is accomplished, hence the need to disband or phase -out the working group once it has achieved its goal(s). Staff working groups are intended to facilitate the development and completion of established goals and objectives. There may be instances when elected officials may have a particular interest in the subject of the working group and the City Manager may want to provide an opportunity for elected officials to attend the working group meeting(s). Brown Act Applicability City Council attendance at working group meetings must be done in compliance with the Brown Act. Generally, any appointed body created by formal action of the City Council is subject to the Brown Act. The Brown Act defines a legislative body to include: A commission, committee, board, or other body of a local agency, whether permanent or temporary, decision making or advisory, created by charter, ordinance, resolution, or formal action of a legislative body. However, advisory committees, composed solely of the members of the legislative body that are less than a quorum of the legislative body are not legislative bodies, except that standing committees of a legislative body, irrespective of their composition, which have Page 1of4 468 of 498 TITLE: City Council Attendance at Staff -level Working Groups POLICY # 118 ADOPTED: June 21, 2016 AMENDED: a continuing subject matter jurisdiction, or a meeting schedule fixed by charter, ordinance, resolution, or formal action of a legislative body are legislative bodies for purposes of this chapter. Government Code § 54952(b). The Brown Act applies to all groups created by formal action of the legislative body. This includes boards, commissions, committees, volunteer groups, task forces, blue ribbon committees, and working groups. Advisory committees (composed solely of councilmembers comprising less than a quorum) are not considered legislative bodies subject to the Brown Act unless they are standing committees. Standing committees are subject to the Brown Act. A standing committee (regardless of composition) is defined as having either: 1) a continuing subject matter jurisdiction; or, 2) a meeting schedule fixed by formal action of the legislative body. Accordingly, an advisory committee comprised solely of Tess than a quorum of the legislative body that serves a limited purpose for a limited time (temporary) is not subject to the Brown Act (commonly referred to as ad hoc committees). Working groups created by staff and whose participants are determined by staff are not subject to the Brown Act. The legislative body must refrain from taking formal action which could be construed as formal action resulting in the creation of a council committee. A body of a city is "created" if the city council "'played a role' in bringing .. . 'into existence' the ... body." Californians Aware v. Joint Labor/Management Benefits Committee, 200 Cal.App.4th 972, 978 (2011). {Group was "created" by city when the city "played a role in bringing" the group into existence even though no formal action by city to establish the group. Epstein v. Hollywood Entertainment District 11 Business Improvement District, 87 Cal.App. 4th 862 (2001)). !n the event there is action taken that could be construed as creating a legislative body, such action in conjunction with the composition of a working group including various individuals (not limited to solely councilmembers) would result in the working group becoming a standing committee subject to the Brown Act. Purpose To establish a mechanism to determine the councilmembers) who attend(s) a staff - level working group meeting(s) and the length of time the member(s) would serve in such a role before a rotation, if any, when more than two members have indicated a desire to attend a staff -level working group. Page 2 of 4 469 of 498 TITLE: City Council Attendance at Staff -level Working Groups POLICY # 118 ADOPTED: June 21, 2016 AMENDED: Policy The criteria in the order provided below will be used to determine which member(s) may attend staff -level working group meetings: 1. Position 2. Seniority 3. Availability 4. Desire The duration for any one member to serve on an established staff -level working group is for a two (2) year period from date of determination. Procedure 1. Based on the City Manager's responsibilities, the working group's need, establishment and composition is determined by the City Manager. When the City Manager makes a determination that the working group would benefit from the presence of a councilmember(s), a written request for attendance availability shall be directed to all members of the City Council. To assist Councilmembers in determining if they have the availability and desire to participate, the request will include a description of the stated purpose of the working group, the anticipated meeting schedule, and the anticipated duration of the working group (if known). The request will also include a deadline for notification of interest. 2. If more than two (2) members of the City Council seek to attend the working group meetings, the City Manager will determine attendees based on the criteria established by this policy. The City Manager will send written notification to the full City Council of the councilmember(s) attending the working group. 3. Using the criteria established by this policy, the attendees will be rotated after a period of two (2) years if the working group is still in existence, following the same process of notification and selection outlined above. Any such rotation will respect the prohibition against serial meetings. Page 3 of 4 470 of 498 TITLE: City Council Attendance at Staff -level Working Groups POLICY # 118 ADOPTED: June 21, 2016 AMENDED: Related Policy References City Council Policy #108 National City Municipal Code, Chapter 2.01 Government Code section 34851, et. seq. Ralph M. Brown Act Rosenberg's Rules of Order Prior Policy Amendments None Page 4 of 4 471 of 498 RESOLUTION NO. 2016 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING CITY COUNCIL POLICY NO. 118 PERTAINING TO CITY COUNCIL ATTENDANCE AT STAFF -LEVEL WORKING GROUPS BE IT RESOLVED by the City Council of the City of National City that City Council Policy No. 118, entitled "City Council Attendance at Staff -level Working Groups" is adopted. PASSED and ADOPTED this 21sY day of June, 2016. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor 472 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 7, 2016 AGENDA ITEM NO. ;1•8 ITEM TITLE: City Council attendance at Staff -level Working Groups and consideration of draft City Council Policy #118 PREPARED BY:' Leslie Deese, City Manager PHONE: 336-4240 EXPLANATION: See attached. DEPARTMENT: City Manager APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: ;NIA ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Council direction requested BOARD 1 COMMISSION RECOMMENDATION: ;NIA ATTACHMENTS: 1. Draft City Council Policy #118 2. May 3, 2016 Staff Report 3. April 19, 2016 Minutes 4, May 19, 2015 Staff Report 473 of 498 Staff Report: City Council Attendance at Staff -level Working Groups and Consideration of Draft City Council Policy #118 At its May 3, 2016 meeting, the City Council directed staff to place an item on a subsequent agenda to discuss councilmember attendance at staff -level working groups, as well as developing a policy or procedure that govems such. The Council previously discussed the subject on May 19, 2015, April 19, 2016, and May 3, 2016 (staff reports attached). This item provides Council the opportunity to discuss the subject further, as well as a draft policy for Council consideration. ackoroun d The City of National City operates under the council-manager form of government. The council is the legislative body that represents the community, is empowered to formulate citywide policy, and can establish boards, committees, commissions, and other groups. The city council is comprised of the mayor and four councilmembers. The city manager is responsible for the administration of city affairs, day-to-day operations, implementation of council policies, and is the liaison between the city council and city staff. On occasion and as needed, the city manager may form a working group of subject matter experts to assist in certain matters. Based on the city manager's responsibilities, the working group's need, establishment and composition is determined by the city manager. This type of working group is separate and distinct from a working group or other type of group which is formed by action of the City Council. This Policy is limited to City Manager formed working groups. The lifespan of a working group can last anywhere between a few months to several years. Such groups have a tendency to develop a quasi -permanent existence when the assigned task is accomplished, hence the need to disband or phase -out the working group once it has achieved its gags). Staff working groups are intended to facilitate the development and completion of established goals and objectives. There may be instances when elected officials may have a particular interest in the subject of the working group and the City Manager may want to provide an opportunity for elected officials to attend the working group meeting(s). Brown Act Applicability City Council attendance at working group meetings must be done in compliance with the Brown Act. Generally, any appointed body created by formal action of the City Council is subject to the Brown Act. The Brown Act defines a legislative body to include: 474 of 498 A commission, committee, board, or other body of a local agency, whether permanent or temporary, decision making or advisory, created by charter, ordinance, resolution, or formal action of a legislative body. However, advisory committees, composed solely of the members of the legislative body that are less than a quorum of the legislative body are not legislative bodies, except that standing committees of a legislative body, irrespective of their composition, which have a continuing subject matter jurisdiction, or a meeting schedule fixed by charter, ordinance, resolution, or formal action of a legislative body are legislative bodies for purposes of this chapter. Government Code § 54952(b). The Brown Act applies to all groups created by formal action of the legislative body. This includes boards, commissions, committees, volunteer groups, task forces, blue ribbon committees, and working groups. Advisory committees (composed solely of councilmembers comprising less than a quorum) are not considered legislative bodies subject to the Brown Act unless they are standing committees. Standing committees are subject to the Brown Act. A standing committee (regardless of composition) is defined as having either: 1) a continuing subject matter jurisdiction; or, 2) a meeting schedule fixed by formal action of the legislative body. Accordingly, an advisory committee comprised solely of less than a quorum of the legislative body that serves a limited purpose for a limited time (temporary) is not subject to the Brown Act (commonly referred to as ad hoc committees). Working groups created by staff and whose participants are determined by staff are not subject to the Brown Act. The legislative body must refrain from taking formal action which could be construed as formal action resulting in the creation of a council committee. A body of a city is "created" if the city council "'played a role' in bringing... 'into existence' the ... body." Californians Aware v. Joint Labor/Management Benefits Committee, 200 Cal.App.4th 972, 978 (2011). (Group was "created" by city when the city "played a role in bringing" the group into existence even though no formal action by city to establish the group. Epstein v. Hollywood Entertainment District it Business Improvement District, 87 Cal.App. 4th 862 (2001)). In the event there is action taken that could be construed as creating a legislative body, such action in conjunction with the composition of a working group including various individuals (not limited to solely councilmembers) would result in the working group becoming a standing committee subject to the Brown Act. 475 of 498 Staff Recommendation: Council direction requested Attachments: 1. Draft City Council Policy 2. May 3, 2016 — Staff Report 3. April 19, 2016 — Minutes 4. May 19, 2015 — Staff Report 476 of 498 DRAFT - City Council Policy #118 Title: City Council Attendance at Staff -level Working Groups Background: The City of National City operates under the council-manager form of government. The council is the legislative body that represents the community, is empowered to formulate citywide policy, and can establish boards, committees, commissions, and other groups. The city council is comprised of the mayorand four councilmembers. The city manger is responsible for the administratiy a# ity affairs, day-to-day operations, innplementation of council policies,_-andrs the liaison between the city council and City staff. On occasion and as needEd, the city Manager may form a working group of subject matter experts to _assist in certain matters. Based on the city manager's responsibilities, the working group's need, establishment and composition is deterrnined by the city manager. This type of working group is separate and distinct from a working group or other type -of group which is'formed by action of the City Council. This Policy is limited to C < ariager formbdivvorking groups. The lifespan of a working group car last ahyvathere between a few months to several years. Such groups have,a:tendency tea _develop -a quasi -permanent existence when the assigned task is accoishhd;_hence tle_needto dban d or phase -out the working group once it has ac i`eved its' l(s). Staff working groups aibAntencleVelo facilitat 4be development and completion of established lszand ob _c ='fl rr may .instances when elected officials may have a sfjeular t est iri f'i subject Hof lie!wi king group and the City Manager may want to rovide an op unit tfor=_elected o ials to attend the working group meeting(s) Brown Act Applitability City Council attendance_at_viroing group meetings must be done in compliance with the Brown Act. GenerafI tcappointed body created by formal action of the City Council is subject to the Bown Act. The Brown Act defines a legislative body to include: A commission, committee, board, or other body of a local agency, whether permanent or temporary, decision making or advisory, created by charter, ordinance, resolution, or formal action of a legislative body. However, advisory committees, composed solely of the members of the legislative body that are less than a quorum of the legislative body are not legislative bodies, except that standing committees of a 477 of 498 legislative body, irrespective of their composition, which have a continuing subject matter jurisdiction, or a meeting schedule fixed by charter, ordinance, resolution, or formal action of a legislative body are legislative bodies for purposes of this chapter. Government Code § 54952(b). The Brown Act applies to all groups created by formal action of the legislative body. This includes boards, commissions, committees, voluntee_r,groups, task forces, blue ribbon committees, and working groups. Advisory committees (composed solely of councilmers comprising less than a quorum) are not considered Iegislati a bodies sub et tol Brown Act unless they are standing committees. Standitg committees at=ubject to tle==gown Act. A standing committee (regardless of composition) is d d as having eith ry 1) a continuing subject matter jurisdiction; or, 2) a meetiregbedule fixed by fora tt_action of the legislative body. Accordingly, an advisory corn_rnittee comprised solely=oftess than a quorum of the legislative body that, serves a tiriil_u5e for a iimitetl_tiime (temporary) is not subject to the' _o r�i Act (comrilareferred to as ad hoc committees)._Y- Working groups created by staff and ose'p jcipants`are-determined by staff are not subject to the Brown Act T# e_ legisiati'Y ody rn efrain ffoFn taking formal action which could be constr=bed aslOrral actin;ItestItKg in Th creation of a council committee. A body# _a; city is "ated" if fy council"ptayed a role' in bringing .. . 'into existence' the ..: dy." Q-Vifomians Aare v. Joint LaborlManagement Benefits Committee-O-=Cal. . = „ App�_=11j `soup was created by city when the city "played=tie :ipg" tioup in -�--�__- 's,ere even though no formal action by city to est 0h the grou t = stein oltywootertainment District 11 Business improve rlt District, 8 -l.App fit'_' 862 (2001)). In the event there is action taken that could -'5 o nstrued as--c-_*ating'itgislative body, such action in conjunction with the composite f a workingtoup including various individuals (not limited to solely councilmembers� .uld result* the working group becoming a standing committee subject to the Browr ct. Purpose To establish a policy that provides a mechanism to select the councitmember(s) to attend a staff -level working group meeting(s) and the length of time the member(s) would serve in such a role before a rotation, if any, when more than two members have indicated a desire to attend a staff -level working group, 478 of 498 Policy There are a number of methods or procedures that could be used to determine which member(s) would attend staff -level working group meetings and duration of participation. • Draw straws • Flip a coin (coin toss) • Draw names from box • By seniority The city clerk is designated as the facilitator of the city b incit's preferred method of selection. Related Policy References City Council Policy #108 National City Municipal Code, Chapter 2.01 Government Code section 3485131,44seq. Ralph M. Brown Act Rosenberg's Rules of Order Prior Policy Amendtfie None 479 of 498 COUNCIL AGENDA STATEMENT MEETING DATE: May 3, 2016 AGENDA ITEM NC 19 ITEM TITLE: .:ity Council discussion and direction on City Council participation on staff working groups, and more specifically, the National City/Port of San Diego Working Group PREPARED BY Leslie Deese, City Mana PHONE: 336-4240 EXPLANATION: DEPARTMENT: City Manager APPROVED BY: At its April 19, 2016 meeting, the City Council directed staff to place an item on the May 3, 2016 agenda to discuss councilmember participation on staff working groups, and specifically, the National City/Port of San Diego Working Group. The Council also discussed a possible policy or procedure that governs councilmember(s) participation on working groups. The City Council last discussed the subject of city ad -hoc committees and working groups on May 19, 2015 (see attached). While no action was taken by the Council at that time, based on discussion at the meeting, the City Attorney subsequently provided a memo to the Council addressing serial meetings and the Brown Act. This item provides the Council with the opportunity to further discuss councilmember participation on the CitylPort working group. FINANCIAL STATEMENT: ACCOUNT NO. !NIA ENVIRONMENTAL REVIEW: !NIA ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Council direction requested. BOARD I COMMISSION RECOMMENDATION: NIA ATTACHMENTS: Agenda item from May 19, 2015 480 of 498 Book 98 1 Page 79 04-15-2016 STAFF REPORTS (cont.) AQUATIC CENTER ADMIN (702-134) 24. Update on Negotiations with Southwestern College to Operate the National City Aquatic Center. (Community Services) Brad Raulston, Executive Director reported that the Southwestern College Board deferred direction to staff to a future meeting when they intend to bring back a refined staff report proposing a pilot program for Southwestern College to operate the Aquatic Center. In the interim, staff is working to program the. facility with contract instructors and other suitable users based on a Facilities Use Permit that would allow the facility to be used during tie summer. The goal is to open the facility on June 8th or gin KIMBALL PARK 1 SKATE PARK ADMiN (702-14) 25. Update on Skate Park Opening. (Engineering) Steve Manganiello, City Engineer/Public Works Director announced that the Skate Park will officially open to the public on April 20th and there will be a formal grand opening event in conjunction with Movies in the Park on June 1Oth. MAYOR AND CITY COUNCIL Member Mendivil reported that he participated with Police Department as a volunteer for Dream Center along with others in the river bottom dealing with the homeless and found it very rewarding. Mr. Mendivil suggested inviting the National School District lhariachi group to perform at a Council meeting and be recognized, and reminded everyone that the National Day of Prayer is May 5t'' in Kimball Bowl. Member Mendivil made a motion, seconded by Cairo, that staff bring back at the next meeting an agenda item to discuss the Port Staff Cornniittee and how it is that et6e ed'me tbers.can.Dartiairate. in that coma itiee. C-atied.byThe following vote, "to=rrit Ayes: Carlo, Mendivil, Morrison. Nays: Rios, Sotelo-Gulls. Abstain: None. Absent: None, Member Sotelo-Solis said she attended the Environmental Health. Coalition Gate; testified befbTe the Legislature on the Environmental Justiee'Bill andi-.spoke at the San biego Leadership Alliance. Member Sotelo -Solis said she was interested in an in -douse. `Economic Development person; looking into securing: a grocery store on the west side and had invited a representative from SANDAG to make a presentation to Council on crime statistics. 481 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: May 19, 2015 AGENDA ITEM NO, ITEM TITLE: City of National City Ad -Hoc Committees and Working Groups PREPARED BY: Leslie Deese, City Manager PHONE: 336-4240 EXPLANATION: Please see attached Staff Report FINANCIAL STATEMENT: ACCOUNT NO. NIA DEPARTMENT: City Manager APPROVED BY: APPROVED: Finance APPROVED: MIS ENVIRONMENTAL REVIEW: NAA ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Request Council direction BOARD / COMMISSION RECOMMENDATION: NIA ATTACHMENTs: Staff Report 482 of 498 Staff Report: City of National City Ad -Hoc Committees and Working Groups At the May 5, 2015 City Council meeting, Councilmember Sotelo-Solis requested staff prepare a report on National City ad -hoc committees and working groups. The purpose of this report is to respond to the councilmember's request and provide a summary of the City's ad -hoc committees and working groups, Ah-Hoc Committees: The City of National City has seven (7) established Boards, Commissions, and Committees as set forth in Title 16 of the Municipal Code. National City also has a number of ad -hoc committees which are temporary advisory committees consisting of council members of less than a quorum, generally short-term in nature, and formed by the City Council for a specific purpose. These temporary committees composed solely of two council members are generally not considered a legislative body under the Brown Act. Ad hoc committees are supported by staff. Recent ad -hoc committees include: • Tobacco (Smoke -Free) Committee • Nutrition Center Sustainability Committee • Special Events Committee • Parks & Facilities Committee • Investment and Bond Committee • War Memorial Committee Each of the ad -hoc committees noted above is comprised of two councilmembers with the exception of the War Memorial Committee which is comprised of community members, military veterans, and City staff. Working Groups: National City also has staff -initiated working groups that are comprised of representatives from City staff that may include staff from other agencies, and participates in working groups created by, or in cooperation with, other agencies. A working group is defined as an ad -hoc group of subject -matter experts working together on more of an ongoing nature in order to achieve specified goals. Recent working groups include: • National City Homeless Committee • Tow Contract RFP Working Group • National City/Port of San Diego/Bay Front Master Plan The National City Homeless Committee is comprised of staff from numerous city departments, The National City/Port of San Diego working group includes City staff, Port staff, National City Port Commissioner, and two Councilmembers, 483 of 498 CC/CDC-HA Agenda 8/16/2016 — Page 484 The following page(s) contain the backup material for Agenda Item: City Council discussion of term limits for City Council members. (City Manager, City Clerk and City Attorney) **Continued from Council meeting of 6/21/16** 484 of 498 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: August 16, 2016 AGENDA ITEM NO. ITEM TITLE: City Council discussion of term limits for City Council members PREPARED BY: Leslie Deese, City Manager, 619-336-4242 DEPARTMENT: City Manager PHONE: Claudia Silva, City Attorney, 619-336-4222 APPROVED BY: , Mike Dalla, City Clerk, 619-336-4226 EXPLANATION: Please see attached. FINANCIAL STATEMENT: ACCOUNT NO. NIA, ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Request Council direction. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1) Staff Report 2) Staff Report for June 21, 2016 3) Election History for Mayor and City Council 4) Legislative History — Voter Approved Term Limits for the Office of Mayor 5) National City Municipal Code Section 2.72.01 485 of 498 for the Office of the Mayor 486 of 498 City Council Discussion of Term Limits for City Council Members At the regular meeting of June 21, 2016, the City Council voted to continue this item to the August 16, 2016 Council meeting. For Council's reference, the City Clerk has also provided the attached Election History for the positions of Mayor and Council. Background: At the June 7, 2016 City Council meeting, Councilmember Mendivil requested that staff return with a discussion item at the next regular meeting on term limits for city council members. Thereafter, on June 21, 2016, the City Council voted to continue this item to August 16, 2016. Should the City Council desire such a change, it can only be done through a voter approved ballot measure. Government Code section 36502 addresses term limits. Section 36502(b) provides in relevant part that "the city council of a general law or charter city may adopt or the residents of the city may propose, by initiative, a proposal to limit or repeal a limit on the number of terms a member of the city council may serve on the city council, or the number of terms an elected mayor may serve. Any proposal to limit the number of terms a member of the city council may serve on the city council, or the number of terms an elected mayor may serve, shall apply prospectively only and shall not become operative unless it is submitted to the electors of the city at a regularly scheduled election and a majority of the votes cast on the question favor the adoption of the proposal," As discussed in the June 21 staff report, under the provisions of the code and the election calendar, the deadline for proposed measures, ordinances and all election related resolutions for the November, 2016 Ballot was August 12, 2016. For Council's reference, attached is National City Municipal Code 2.72.010 — Term limit for the Office of Mayor, which came into effect in 2004 and applied to full terms commencing after the November 2, 2004 General Municipal Election. 487 of 498 488 of 498 COUNCIL AGENDA STATEMENT MEETING DATE: June 21, 2016 AGENDA ITEM NO. 33 'TEM TITLE: :ity Council discussion of term limits for City Council members PREPARED BY:!, Deese, City Manager, 619-336-424 PHONE: Claudia Silva, City Attorney, 619-336-422 Mike Dalia, City Clerk, 619-336-4226 EXPLANATION: Please see attachedi DEPARTMENT: City Manager APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. NIA; ENVIRONMENTAL REVIEW: 'NIA, ORDINANCE: INTRODUCTION: I 1 FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Request Council direction. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1) Staff Report 2) National City Municipal Code Section 2.72.010 — Term limit for the Office of the Mayor 489 of 498 City Council Discussion of Term Limits for City Council Members At the June 7, 2016 City Council meeting, Councilmember Mendivil requested that staff return with a discussion item at the next regular meeting on term limits for City Council members. Should the Council desire such a change, it can only be done through a voter approved ballot measure. In order to appear on the November 2016 Ballot, the text of a proposed measure and ordinance, in addition to all election related resolutions, would need to be adopted by August 2, 2016. Government Code section 36502 addresses term limits. Section 36502(b) provides in relevant part that "the city council of a general law or charter city may adopt or the residents of the cit} may propose, by initiative, a proposal to limit or repeal a limit on the number of terms a member of the city council may serve on the city council, or the number of terms an elected mayor may serve. Any proposal to limit the number of terms a member of the city council may serve on the city council, or the number of terms an elected mayor may serve, shall apply prospectively only and shall not become operative unless it is submitted to the electors of the city at a regularly scheduled election and a majority of the votes cast on the question favor the adoption of the proposal." For Council's reference, attached is a copy of National City Municipal Code Section 2.72.010 — Term limit for the Office of Mayor, which came into effect in 2004 and applied to full terms commencing after the November 2, 2004 General Municipal Election. 490 of 498 August 9, 2016 TO: FROM: SUBJECT: City of National City Office of the City Clerk 1243 National City Blvd_, National City, CA 91950-4397 619-336-4226 619-336-4229 fax Michael R. Dalla — City Clerk Mayor Morrison Vice Mayor Cano Council Member Mendivil Council Member Rios Council Member Sotelo-Solis Michael Dalla, City Clerk Election History for Mayor and City Council On June 6th, I provided you with a report on the Legislative History for the Voter Approved Term Limits for the Office of Mayor adopted in 2004. A copy of that report is attached for reference (see Exhibit "A"). At that June 7th meeting of the City Council, a question were posed as to why term limits exist for the Office of Mayor and not for the City Council? It was requested that the matter be placed on a future Council agenda. At the August 2nd City Council meeting the item was continued to allow more time for discussion. In order to begin to answer the question posed, it may be helpful to know not only the Legislative History for Mayoral term limits but to also review the actual Election History for both the Mayor and City Council. Election History for the Office of Mayor During the 36-year period from 1966 to 2002, a total of two individuals were elected to the Office of Mayor with both serving four or more consecutive terms. A short time after the conclusion of that 36 year period, voters were asked if they wanted to have Mayoral term limits which they approved. The term limit question was placed on the 2004 ballot at the request of Mayor Nick Inzunza. Prior to that time, there is no record of any formal or informal request from the public or City Council to place a term limit measure on the ballot. 491 of 498 Elected terms in office for Mayor during the 52-year period from 1966 to 2018 are detailed below: Term Mayor Number of Terms 1966 — 1986 Kile Morgan 5 consecutive terms (20 years) 1986 — 2002 George Waters 4 consecutive terms (16 years) 2004 - BALLOT TERM LIMITS APPROVED 2002 — 2006 Nick Inzunza 1 term (4 years) 2006 — 2018 Ron Morrison 3 consecutive terms (12 years) Election History for the Office of City Council During the 56 year period from 1960 to 2016, a total of three Council Members were elected to more than three consecutive terms in office; three Council Members were elected to three consecutive terms and 18 Council Members were elected to two terms or less. A term limit for the City Council of three consecutive terms was considered in 2004. However, the City Council chose to not place the matter on the ballot. There is no record of any formal or informal request from the public to place a City Council term limit measure on the ballot. City Council Elected Terms during the 56-year Period 1960 to 2016: • Number of Council Members elected to more than 3 consecutive terms 3 • Number of Council Members elected to 3 consecutive terms 3 • Number of Council Members elected to 2 terms or less 18 Why Term Limits for Mayor and Not for City Council? It would be presumptuous to offer a definitive answer to the question; however, the election history cited above does provide a couple of key points to consider. First of all, having only two individuals serve as Mayor during a 36 year period, both of them serving four or more consecutive terms ending in 2002, was fresh on the mind of voters when they were asked in 2004 if they wanted Mayoral term limits. Secondly, the City Council, by contrast has not experienced the same frequency of consecutive elected terms as did Mayors from 1966 to 2002. During the past 56 years only three out of 24 Council Members have been elected to more than three consecutive terms in office. It is no less interesting to note that the current City Council has two members serving their first term and two members serving their second term. 492 of 498 City of National City Office of the City Clerk 1243 National City Blvd., National City, CA 91950-4397 Michael R. Dalla — City Clerk (619)336-4226 (619) 336-4229 EXHIBIT "A" June 6, 2016 TO: Mayor Morrison Vice Mayor Cano Council Member Mendivil Council Member Rios Council Member Sotelo-Solis FROM: Michael Dalla, City Clerk SUBJECT: Legislative History — Voter Approved Term Limits for the Office of Mayor Inquiries have been made regarding the legislative history and record that culminated in the 2004 voter established term limits for the Office of Mayor. The relevant record is summarized on the following pages. 493 of 498 PROPOSAL In June of 2004 Mayor Nick Inzunza submitted a proposal to the City Council that included: a) a modified retirement (deferred benefit) plan for the Mayor; b) Term limits for the Mayor; c) campaign contribution limits for local elections, and d) establishing a code of ethics for elected officials. After consultation with the California Public Agency Retirement System (PARS), it was determined that the proposed PARS deferred benefit retirement plan for the Mayor could not be implemented unless it also included the City Clerk and City Treasurer. CITY COUNCIL MEETING - JUNE 6, 2004 Item Number 19 on the June 6, 2004 City Council Agenda: Resolution 2004-123: ORDERING THE SUBMISSION OF A PROPOSITION TO THE QUALIFIED VOTERS OF THE CITY OF NATIONAL CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 2, 2004, RELATING TO AN ORDINANCE IMPOSING A TERM LIMIT (TWO TERMS) FOR THE OFFICE OF MAYOR TOGETHER WITH A DEFINED BENEFIT RETIREMENT PLAN FOR THE INCUMBENT MAYOR, CITY TREASURER AND CITY CLERK, ESTABLISHING A CODE OF ETHICS FOR ELECTED OFFICIALS OF THE CITY, AND IMPOSING CAMPAIGN CONTRIBUTION LIMITS. The City Council took the following action on the item: ACTION: Motion by Parra, seconded by Natividad, to continue this item in order to allow time to work out the details. Carried by unanimous vote. 494 of 498 CITY COUNCIL MEETING - JUNE 20, 2004 Item Number 20 on the June 20, 2004 City Council Agenda: Resolution 2004-132: ORDERING THE SUBMISSION OF A PROPOSITION TO THE QUALIFIED VOTERS OF THE CITY OF NATIONAL CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 2, 2004, RELATING TO AN ORDINANCE IMPOSING A TERM LIMIT (TWO TERMS) FOR THE OFFICE OF MAYOR TOGETHER WITH A DEFINED BENEFIT RETIREMENT PLAN FOR THE INCUMBENT MAYOR, CITY TREASURER AND CITY CLERK, ESTABLISHING A CODE OF ETHICS FOR ELECTED OFFICIALS OF THE CITY, AND IMPOSING CAMPAIGN CONTRIBUTION LIMITS. The City Council took the following action on the item: ACTION: Motion by Natividad, that the Resolution be split into four parts and be taken up separately. Motion died for lack of a second. Motion by Inzunza, seconded by Natividad, to scrap the retirement portion of the Resolution. Carried by unanimous vote. Motion by Natividad, seconded by Inzunza to place a term limit measure on the ballot calling for a two four-year term limit for the Mayor and a three four-year term limit for the City Council. The motion was clarified to mean that a termed -out incumbent would be required to sit out one election cycle before being eligible to seek election. Vice Mayor Parra requested the motion be split into two separate motions; term limits for the Mayor and term limits for the City Council. The maker and second agreed. The first part of the divided motion, to place on the ballot a measure' calling for a three -term limit for the City Council, was approved by the following vote, to -wit: Ayes: Inzunza, Natividad, Parra. Nays: Morrison, Ungab. Absent: None. Abstain: None. The second part of the divided motion, to place on the ballot a measure calling for a two -term limit for the Office of Mayor, was approved by the following vote, to -wit: Ayes: Inzunza, Morrison, Natividad, Parra. Nays: Ungab. Absent: None. Abstain: None. Motion by Inzunza, that we include in the ballot measure some language asking voters if the City should have an ethics code that applies to the Mayor and Council. Died for lack of a second. Motion by Inzunza, second by Parra, to conduct a mandatory workshop in 60 days to discuss ethics code and campaign contribution limits. Carried by unanimous vote. 495 of 498 CITY COUNCIL MEETING - AUGUST 3, 2004 Item Number 24 on the August 3, 2004 City Council Agenda: Resolution No. 2004-150: ORDERING THE SUBMISSION OF A PROPOSITION TO THE QUALIFIED VOTERS OF THE CITY OF NATIONAL CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 2, 2004, RELATING TO AN ORDINANCE IMPOSING A TERM LIMIT (THREE CONSECUTIVE TERMS) FOR THE OFFICE OF CITY COUNCILMEMBER. The City Council took the following action on the item: ACTION: Motion by Inzunza, to approve the Resolution. Motion died for lack of a second. Motion by Natividad, seconded by Parra, to not adopt the Resolution. Carried by the following vote, to -wit: Ayes: Morrison, Natividad, Parra, Ungab. Nays: Inzunza. Absent: None. Abstain: None. Item Number 26 on the August 3, 2004 City Council Agenda: Resolution No. 2004-152: ORDERING THE SUBMISSION OF A PROPOSITION TO THE QUALIFIED VOTERS OF THE CITY OF NATIONAL CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 2, 2004, RELATING TO AN ORDINANCE IMPOSING A TERM LIMIT (TWO CONSECUTIVE TERMS) FOR THE OFFICE OF THE MAYOR. The City Council took the following action on the item: ACTION: Motion by Morrison, seconded by Parra, to amend the Resolution to reflect a 3-term limit and approve the Resolution as amended. Carried by the following vote, to -wit: Ayes: Inzunza, Morrison, Parra, Ungab. Nays: Natividad. Absent: None. Abstain: None. 496 of 498 ELECTION DAY - NOVEMBER 4, 2004 The following Proposition was voted on by National City Voters. PROPOSITION T "Shall an ordinance be adopted imposing a term limit of three consecutive terms for the Office of Mayor?" No arguments were submitted in favor of the Proposition. No arguments were submitted in opposition to the Proposition. The Proposition was approved: 6916 YES Votes 70% 2971 NO Votes 30% Approval of Proposition T added a new Chapter to the Municipal Code Chapter 2.72 TERM LIMIT FOR THE OFFICE OF MAYOR 2.72.010 Term limit for the office of Mayor. No person shall be eligible for nomination and election to the office of Mayor for more than three (3) consecutive terms, and no person who has held the office of Mayor for three (3) consecutive terms, may again seek nomination and election to the office of Mayor until one (1) election cycle following the termination of the third term for Mayor has elapsed; provided, however, that any person who is appointed by the City Council to fill the office of Mayor or elected in a special election for the balance of a regular term of Mayor for a period of two (2) years or Tess may seek nomination and election for three (3) full terms thereafter. This Section shall apply prospectively to full terms commencing after the November 2, 2004 General Municipal Election. 497 of 498 2.72.010 - Term limit for the office of mayor. No person shall be eligible for nomination and election to the office of mayor for more than three consecutive terms, and no person who has held the office of mayor for three consecutive terms, may again seek nomination and election to the office of mayor until one election cycle following the termination of the third term for mayor has elapsed; provided, however, that any person who is appointed by the city council to fill the office of mayor or elected in a special election for the balance of a regular term of mayor for a period of two years or less may seek nomination and election for three full terms thereafter. This section shall apply prospectively to full terms commencing after the November 2, 2004 general municipal election. (Ord. 2257 § 1, 2004) 498 of 498