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Draft Agenda Packet cc 12-13-16
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, DECEMBER 13, 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 104 CC/CDC-HA Agenda 12/13/2016 — 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 104 CC/CDC-HA Agenda 12/13/2016 — 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 1. Employee of the Quarter 2016 - Paul Kane, Fire Engineer PRESENTATIONS INTERVIEWS / APPOINTMENTS CONSENT CALENDAR 2. 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) 3. Resolution of the City Council of the City of National City authorizing the Mayor to execute a First Amendment to the Service Agreement between the City of National City and MediFit Community Services LLC, doing business as EXOS, exercising the option to extend the term by 12 months beginning July 1, 2017 and ending on June 30, 2018. (Community Services) 4. Resolution of the City Council of the City of National City, 1) awarding a contract to Palm Engineering Construction Company, Inc. in the not -to - exceed amount of $983,756.49 for the Division Street Traffic Calming Project, CIP No. 16-09; 2) authorizing a 15% contingency in the amount of $147,563.47 for any unforeseen changes; and 3) authorizing the Mayor to execute the contract. (Engineering/Public Works) PUBLIC HEARINGS ORDINANCES FOR INTRODUCTION 3 of 104 CC/CDC-HA Agenda 12/13/2016 — Page 4 5. (A) An Ordinance of the City Council of the City of National City establishing the compensation of the Mayor and the City Council. (City Attorney); (B) An Ordinance of the City Council of the City of National City establishing the Retiree Health Care Benefits for the Mayor and City Council. (City Attorney) ORDINANCES FOR ADOPTION NON CONSENT RESOLUTIONS 6. Resolution of the City Council of the City of National City authorizing the following actions to facilitate completion of priority Capital Improvement Program (CIP) projects: 1) release of General Fund (GF) appropriations in the amount of $990,460.24 from Civic Center Chiller, Kimball Tower Rehab, George H. Waters Nutrition Center Improvements (Phases I & II), Kimball Recreation Center Roof Replacement, MLK Jr Community Center Improvements, and Casa de Salud Manuel Portillo Youth Center Improvements projects; 2) appropriate $990,460.24 to corresponding GF expenditure accounts for Police Department Building Improvements (Phase I), ARTS Center Roof Replacement, Drainage Improvements, and Street Resurfacing projects; 3) release of Information Systems Maintenance (ISM) appropriations in the amount of $70,171.70 from Security Card Access System and Civic Center Data Center AC projects; and 4) appropriate $70,171.70 to corresponding ISM expenditure account for Public Safety Cameras project for the National City Aquatic Center. (Engineering/Public Works) 7. Resolution of the City Council of the City of National City authorizing the Mayor to execute a Site Infrastructure Agreement between the City of National City and Paradise Creek II Housing Partners, L.P., a California limited partnership, to subcontract the City to perform remediation work needed on the public park component of the Westside Transit -Oriented Affordable Housing and Paradise Creek Enhancement Project and pay the City $4,800,000 in satisfaction of Paradise Creek II Housing Partners obligation to improve said public park and establishing the appropriation and corresponding revenue budget for said Agreement. (Housing & Economic Development) NEW BUSINESS 8. Selection of Vice -Mayor 9. Temporary Use Permit — South Bay Community Church requesting to have a shipping container for storage at 2400 Euclid Avenue from December 14, 2016 thru December 14, 2017 with no waiver of fees. (Neighborhood Services) 4 of 104 CC/CDC-HA Agenda 12/13/2016 — Page 5 10. Temporary Use Permit — "Frank King's Christmas with Kids" hosted by Christmas with Kids at 223 E. 3rd Street on December 25, 2016 from 7 a.m. to 11 a.m. The applicant has requested a waiver of fees. (Neighborhood Services) 11. Scheduling of City Council workshops related to the discussion and preparation of the City of National City's annual budget for Fiscal Year 2018 and Five -Year Strategic Plan. (Finance) 12. Staff Report: Fiscal Year 2016 and 1st Quarter Fiscal Year 2017 Budget Review. (Finance) 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 - January 17, 2016 - 6:00 p.m. - Council Chambers - National City, California. City Council and Community Development Commission - Housing Authority of the City of National City Meeting Schedule for the Period December 20, 2016 through January 17, 2017: December 20, 2016 - Dispense with Meeting - 6:00 pm January 03 - Dispense with Meeting - 6:00 pm January 17 - Regular Meeting - 6:00 pm 5 of 104 CC/CDC-HA Agenda 12/13/2016 — Page 6 The following page(s) contain the backup material for Agenda Item: Employee of the Quarter 2016 - Paul Kane, Fire Engineer 6 of 104 CITY OF NATIONAL CITY MEMORANDUM DATE: December 1, 2016 TO: Leslie Deese, anager FROM: Stacey Steven :oni eputy City Manager SUBJECT: EMPLOYEE 0 QUARTER PROGRAM The Employee Recognition Program communicates the City°s appreciation for outstanding performance. In doing so, it recognizes employees who maintain high standards of personal conduct and make significant contributions to the workplace and community. The employee to be recognized for the Fourth Quarter of calendar year 2016 is: Paul Kane — Fire Engineer By copy of this memo, the employee is invited to attend the Council meeting on Tuesday, December 13, 2016 to be recognized for his achievement and service. Attachment cc: Paul Kane Frank Parra — Director of Emergency Services Josie Flores -Clark — Executive Assistant IV Human Resources — Office File 7 of 104 RECEB-En NOV 29 2016 c r ; or' �. i 7^: �'9i CITY HUMAN RES( ilICI• i /APART:4;ENT Performance Recognition Award Nomination Form i nominate Engineer Paul Kane For the Performance Recognition Award for the following reasons: Please state reason why your nominee should receive an award, (i.e., examples of service beyond requirements of position, exemplary service to the public. outstanding job performance, etc.) Do not to exceed 150 total words. Please be as specific as possible when giving your examples. Engineer Paul Kane is very reliable on the fire ground and in the fire house. He shares his skills constantly with fellow fire personnel. This includes his construction knowledge which which has proven to be invaluable many times. He has taken leadership construction roles on behalf of the National City Fire Department as well as projects for National City residents including Habitat for Humanity, the Sanchez Family Home project and many more. He constructed a V.E.I.S. room in the drill tower, which has been used to train Firefighters from all over the county. Paul is also a member of the Department Rescue Committee, which is responsible for researching new equipment and Implementing new tactics and strategies. He is an exemplary employee and an outstanding crew member. His commitment to providing the highest possible standard of care to the citizens of National City is an asset to the department and the City. FORWARD COMPLETED NOMINATION TO: National City Performance Recognition Program Human Resources Department Nominated Frank Parra, Di or of Erne rcenclr Services Signature. Date: November 29, 2016 8 of 104 CC/CDC-HA Agenda 12/13/2016 — Page 9 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing the Mayor to execute a First Amendment to the Service Agreement between the City of National City and MediFit Community Services LLC, doing business as EXOS, exercising the option to 9 of 104 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 6, 2016 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute a First Amendment to the Service Agreement between the City of National City and MediFit Community Services LLC, doing business as EXOS, exercising the option to extend the term by 12 months beginning July 1, 2017 and ending on June 30, 2018. (Community Services) PREPARED BY: Audrey Denham PHONE: 619-336-4243, EXPLANATION: See attached staff report. DEPARTMENT: Community vices APPROVED BY: FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. APPROVED: MIS During FY18 budget development staff will include $422,000 in the Community Services Contract Services account. ENVIRONMENTAL REVIEW: This is not a project and, therefore, is not subject to environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the resolution authorizing the Mayor to execute a First Amendment to the Service Agreement between the City of National City and EXOS. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Staff Report 2. Service Agreement 3. Amendment to Service Agreement 10 of 104 CALIFORNIA NNATI O NI\L CIr, ! IV o mo INCORPORATED City Council Staff Report December 13, 2016 ITEM Staff Report: Resolution of the City Council of the City of National City authorizing the Mayor to execute a First Amendment to the Service Agreement between the City of National City and MediFit Community Services LLC, doing business as EXOS, exercising the option to extend the term by 12 months beginning July 1, 2017 and ending on June 30, 2018. BACKGROUND On November 3, 2015 City Council approved a 20 month Service Agreement with MediFit Community Services LLC, now doing business as EXOS, to provide aquatic services at Las Palmas Pool. As a result, the City and EXOS successfully reopened Las Palmas Pool in February 2016 providing recreational swim, lap swim, aquatic exercise classes, learn to swim classes and facility rentals. The Service Agreement with EXOS is set to expire on June 30, 2017, and an extension is required in order to continue providing uninterrupted services to National City residents. Upon mutual agreement the City and EXOS may extend the term of the Service Agreement for an additional 12 months, extending the Service Agreement until June 30, 2018. SUMMARY OF FIRST AMENDMENT City staff and EXOS have been negotiating a 12 month extension to the Service Agreement, which includes a new EXOS operating budget and revisions to agreement language to reflect actual operations. The new EXOS operating budget is estimated at $422,000 for Fiscal Year 2018 (FY 18) and includes payroll and staffing expenses, marketing and administrative costs and monthly base management fees. There is an increase in EXOS' operating expenses and monthly management fees of $28,000 from FY17 to FY 18. This increase is attributable to an increase in services, specifically the National School District third grade learn to swim program. The $28,000 increase is offset by $40,000 paid to the City by the National School District for the third grade learn to swim program. The City will continue to be financially responsible for utilities, chemicals, facility and landscape maintenance, and janitorial services. In addition, revenue generated from recreational programs and facility rentals will continue to be collected by EXOS and submitted to the City. Additional revisions to the agreement to reflect actual operations include the following: 11 of 104 Page 2 Staff Report — First Amendment to the Service Agreement between the City and EXOS December 13, 2016 1. Acceptance of the name change from MediFit to EXOS. 2. Addition of the National School District third grade learn to swim program. 3. Change in operating hours to accommodate lap swimmers at 5:00 a.m. 4. Addition of the City's Social Media Policy. 5. Clarification on how EXOS invoices the City, and how revenue is collected and submitted to the City. 6. Addition of language prohibiting consumption of alcohol at Las Palmas Pool. RECOMMENDATION Adopt the resolution authorizing the Mayor to execute a First Amendment to the Service Agreement between the City of National City and EXOS. FISCAL IMPACT During FY18 budget development staff will include $422,000 in the Community Services Contract Services account. 12 of 104 SERVICE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND MEDIFIT COMMUNITY SERVICES LLC FOR THE OPERATION OF LAS PALMAS POOL This Service Agreement (this "Service Agreement") is entered into by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and MEDIFIT COMMUNITY SERVICES LLC, a limited liability company ("MEDIFIT"). RECITALS A. The CITY owns the real property commonly known as Las Palmas Pool, located at 1800 E. 22nd Street, National City, California (the "Premises") as depicted on Exhibit A. B. MEDIFIT is a privately -held fitness and wellness nathsgement and consulting company and is in the business of designing, managing and operating all aspects of mixed use health, fitness and aquatics centers similar to Las Palmas Pool. C. The CITY wishes to have MEDIFIT operate the Las Palmas Pool with MEDIFIT programs serving the local community. D. The CITY is responsible for repair and maintenance of the Premises, which includes improvements, landscaping, janitorial, facility maintenance, chemical maintenance and information technology. The City desires to engage MEDFIT to operate of the Premises, which includes, personnel, programming, events and operating procedures and policies. NOW, THEREFORE, in consideration of the foregoing facts, and in consideration of the promises and covenants hereinafter set forth, the parties agree as follows: ARTICLE 1 TERM OF AGREEMENT 1.1 Term. The term of this Service Agreement shall be for twenty (20) months beginning November 4, 2015 (the "Commencement Date") and terminating on June 30, 2017 (such period, the "Term"). 1.2 Option to Extend Term. This Service Agreement may be extended upon mutual agreement between the parties. If either party desires an extension, the requesting party must make the request for an extension to the Term no less than nine (9) months prior to the end of the Term and mutual agreement must be reached no less than six (6) months prior to the end of the Term. At the time of an extension request, MEDIFIT and the CITY shall discuss a mutually agreed upon scope of work for the extended Term. The CITY and MEDIFIT may mutually agree to extend the Term of this Service Agreement for up to two (2) additional one (1) year terms. 1 Service Agreement Between City and MediFit 94-15 13 of 104 1.3 Transition Period. Should the CITY or MEDIFIT decide not to extend this Service Agreement within the timefiame above, MEDIFIT will work with the CITY to transition the operations to the CITY over the six (6) month period preceding the end of the Term of this Service Agreement. ARTICLE 2 PREMISES AND PERSONAL PROPERTY 2.1 Facilities to be Operated. For the purpose of operating the Premises for the benefit of the citizens of National City, the CITY hereby engages MEDIFIT to operate the Premises, subject to the covenants and conditions hereinafter set forth, on the Commencement Date. Facilities to be operated include the main pool, the activity pool, the locker rooms, main pump and storage rooms and the main lobby and administrative offices (the "Facilities"). The main pool is 50 meters by 19.8 meters, with 8 lanes of 50 meters, including one 3 meter diving board and two 1 meter diving boards. The activity pool is 80 feet long and at its widest it is 45 feet wide with a total area of 81,000 square feet; it has 4 different spray features and a 16 foot high slide with a ride length of 134.58 feet. The locker rooms are enclosed by a high wall and have a large changing area, showers and restrooms. There is a main pump room adjacent to the pool along with multiple storage rooms. There is also a main lobby and administrative offices. 2.2 Ownership of Personal Property and Improvements. The rights and obligations of the parties regarding the ownership of personal property and improvements on the Premises shall be as follows: 2.2.1 All of the CITY's personal property not permanently affixed to the Premises ("Personal Property"), such as but not limited to, furnishings, office equipment and supplies shall remain the property of the CITY. All improvements existing on the Premises ("Improvements"), together with all fixtures permanently attached to the Premises ("Fixtures"), as of the Commencement Date shall remain the property of the CITY during the Term. MEDIFIT shall not remove any Personal Property, Improvements, or Fixtures from the Premises nor waste, destroy, or modify any Personal Property, Improvements, or Fixtures on the Premises. All new Improvements, together with all new Fixtures permanently attached to the Premises, after the Commencement Date shall remain the property of the CITY during the Term. MEDIFIT shall not remove any of the CITY's Personal Property, Improvements, or Fixtures from the Premises nor waste, destroy, or modify any Personal Property, Improvements, or Fixtures on the Premises. 2.2.2 All of MEDIFIrs personal property not permanently affixed to the Premises shall remain the property of MEDIFIT. ARTICLE 3 PERMfnED USE 2 Service Agreement Between City and MediFit 9-4-15 14 of 104 3.1 Permitted Uses. MED11{11shall operate the Premises by providing for and facilitating the following proposed activities beginning January 2016, which may be amended or replaced from time -to -time by agreement of the authorized representatives of the parties: 3.1.1 Open Swim on Saturday and Sunday throughout the year and open swim seven (7) days a week during the months of June, July and August; as well as during the National School District two (2) week fall break that occurs during September and/or October. In addition, consideration based on need will be given for an expanded open swim schedule during the National School District two (2) week winter and spring breaks. 3.1.2 Learn to swim classes throughout the year based on community needs. The number of classes offered will increase during the months of June, July and August. A variety of learn to swim classes for youth and adults with varying levels of experience will be offered. Cancelation of classes is permitted if enrollment is under three (3) participants. 3.1.3 Exercise classes for various ages and abilities and offered based on community needs. Cancelation of classes is permitted if enrollment is under five (5) participants. 3.2 Hours of Service. MEDIFIT may provide programming between the hours of 7:00 am. and 10:00 p.m. seven (7) days a week beginning January 2016. Hours of service may be changed upon mutual agreement. 3.2 CITY Use. The City may use the Premises for special events including National Night Out and Summer Movies in the Park. The CITY may use the Premises for up to ten (10) additional events or programs per year. Dates and times of such uses will be agreed upon by the CITY and MEDIFIT. 3.3 Consideration. MEDIFIT's performance under this Service Agreement shall serve as the sole consideration due to the CITY for MEDIFIT's right to operate the Premises. 3.4 CITY Residents. Participants seeking day use of the Premises who prove to MEDIFIT's satisfaction that they are residents of the CITY shall not be required to become members of MEDIFIT and shall be offered reduced resident rates. ARTICLE 4 SERVICES 4.1 MEDIFIT shall render the management services listed below (the "Services") to the CITY for the on -site management and supervision of the Premises. The Services shall be performed in accordance with generally accepted standards in the fitness and wellness management industry and shall be performed in accordance with such requirements or restrictions as may be imposed by any government authority. MEDIFIT shall provide the Services as follows: 3 Service Agreement Between City and MediFit 9-4-15 15 of 104 4.1.1 MEDIFIT has formulated an annual budget in accordance with financial targets for net operating income/surplus and meeting agreed upon benchmarks as set forth in Exhibit B attached hereto and incorporated herein. The budget is mutually agreed upon by the CITY and MEDIFIT. 4.1.2 MEDIFIT shall endeavor to meet or exceed the revenue goals as set forth in Exhibit B through the development and execution of effective marketing and retention plans. 4.1.3 MEDFIT shall provide learn to swim classes, open swim and other programs at affordable resident rates approved by the City. 4.1.4 MEDIFIT shall endeavor to meet or exceed budgeted net operating income/surplus goals as set forth in Exhibit B. Financial results will be monitored by and reviewed with the CITY on a monthly, quarterly and annual basis. 4.1.5 MEDIFIT shall provide quarterly reports to the City denoting National City participant numbers, total participant numbers, events and programs coordinated, total use by third parties, such as athletic teams, and any other pertinent statistics. 4.1.6 MEDIFIT shall recruit, hire and employ, as employees of MEDIFIT, all persons who will work at, or provide services to the Premises, managed by MEDIFIT in furtherance of the CITY operations (all such persons being referred to herein, collectively as "Managed Personnel"). Salaries and other expenses of Managed Personnel will be charged to CITY as an operating expense only to the extent such Managed Personnel are actually employees of MEDIFIT. Both parties hereto in the performance of this Service Agreement will be acting in an independent capacity and not as agents, employees, partners, or joint venturers with one another. Neither MEDIFIT nor, to MediFit's knowledge, MEDIFIT'S employees are employees of the CITY, and are not entitled to any of the rights, benefits, or privileges of the CITY'S employees, including but not limited to retirement, medical, unemployment, or workers' compensation insurance. This Service Agreement contemplates the personal services of MEDIFIT and MEDIFIT'S employees, and it is recognized by the parties that a substantial inducement to the CITY for entering into this Service Agreement was, and is, the professional reputation and competence of MEDIFIT and its employees. Neither this Agreement nor any interest herein may be assigned by MEDIFIT without the prior written consent of the CTTY. Nothing herein contained is intended to prevent MEDIJhf1 from employing or hiring as many employees as MEDIFIT may deem necessary for the proper and efficient performance of this Service Agreement. All agreements by MEDIFIT with third parties shall require the third party to adhere to the applicable terms of this Service Agreement. 4 Service Agreement Between City and MediFit 9-4-15 16 of 104 4.1.7 MEDIFIT will manage personnel, facilities and programs/services in a manner consistent with the mission and values of the CITY. MEDIFIT will provide personnel as it deems reasonably necessary to perform the Services set forth in this Service Agreement. Personnel will be trained by MEDIFIT to properly perform the Services. MEDIFIT will present the CITY with General Manager candidates for review prior to hiring. The CITY will have the right to disapprove of the General Management candidates. 4.1.8 MEDIFIT will establish and implement policies and procedures designed to operate the Premises in a manner that promotes safety, customer service and financial accountability. 4.1.9 MEDIFIT will work closely with the CITY and the Community Services Department in designing and implementing effective and low cost program marketing campaigns, including community outreach to find programming opportunities. MEDIFIT will develop and launch outdoor fitness and program initiatives. 4.1.9.1 Use by Others. MEDIFIT may allow use of the Premises to other groups or organizations such as athletic teams/clubs. Any third party group users such as athletic teams/clubs shall be required to obtain a facility use permit from the CITY, and shall pay fees to the CITY for their use of the Premises. 4.1.10 MED1FIT will develop and enhance measurement and analytics capabilities to help optimize revenue. 4.1.11 MEDIFIT will assist the CITY with a needs assessment for the Premises, which includes, but is not limited to, providing analysis and recommendations to improve operations and collecting input from the community through survey's and community meetings ARTICLE 5 EQUIPMENT 5.1 The CITY will be solely responsible for providing and equipping the Premises (including, without limitation, Automatic External Defibrillators) so that the Services may be rendered by MEDIFIT in accordance with this Service Agreement and in compliance with all applicable rules and regulations relating to the Premises and the Services. The CITY shall provide such items as office furniture and equipment, telephones, computers and software for the Premises. The CITY will also be responsible for purchasing or leasing all aquatic related exercise equipment and safety and first aid equipment necessary to operate the Premises as reasonably requested by MEDIFIT. The CITY also agrees to, at its sole expense, maintain such equipment to the best of their ability. The CITY will consider the nature and priority of the maintenance and available funding to determine if and when such repairs and maintenance will be completed. 5 Service Agreement Between City and MediFit 9-4-15 17 of 104 5.2 MEDFIT shalt, provide general administrative supplies and marketing materials necessary for the operation of the Premises at the City's sole cost and expense. The City shall pay for such supplies and materials within thirty (30) days of receipt of MEDIFIT's invoice therefor. MEDIFIT shall prepare and distribute marketing materials and CITY shall assist with the distribution of marketing materials. ARTICLE 6 UTILI'1'1bS 6.1 Utility Services. The CITY shall be responsible for maintaining utility services to the Premises, and shall provide and pay for all utilities or services necessary for its use and operation of the Premises during the Term, including but not limited to gas, water, electricity, trash, sewer charges an. telephone. The CITY shall, pay directly to the applicable utility company such charges, and MEDIFIT shall have no obligation to pay for such utility services. ARTICLE 7 REPAIRS; MAINTENANCE 7.1 CITY Repair and Maintenance Obligations. The CITY shall, at its own cost and expense, repair, maintain in good and tenantable condition, ordinary wear and tear excepted, and replace, as necessary, the Premises. The CITY is responsible for all repair and maintenance including but not limited to, landscape maintenance, janitorial maintenance and facility maintenance. The CITY shall work with MEDIFIT to maintain public safety, hygiene and fire safety of the Premises. The CITY shall consider the nature and priority of the work and available funding to determine if and when such repairs and maintenance will be completed. 7.1.1 Landscape Maintenance. The CITY is responsible for all outdoor cleaning and landscape maintenance at the Premises. 7.1.2 Janitorial Maintenance. The CITY is responsible for janitorial maintenance at the Premises, including but not limited to, routine cleaning of office, lobby, restrooms and locker rooms which includes waste removal, window cleaning, sweeping and mopping floors, and dusting and wiping counters and surfaces. The CITY is responsible for stocking janitorial items such as toiletries and cleaning supplies. The CITY has sole discretion on the frequency of cleaning and amount of janitorial items stocked. 7.1.3 Facility Maintenance The CITY is responsible for all facility maintenance, including but not limited to, electrical, lighting, plumbing, pool chemicals, paint, flooring, HVAC systems and heat and air conditioning. 7.1.4 Information Technology. The CITY is responsible for providing internet access, telephones and support services. 7.2 MEDIFIT Repair and Maintenance Obligations MEDFIT shall operate the Premises in a manner that promotes the safety and security of the public while MEDFIT personnel is on the Premises. Safety and security issues must be reported to the designated CITY contact promptly 6 Service Agreement Between City and MediFit 9-4-15 18 of 104 and MEDIFIT personnel will endeavor to protect the safety and security of the public until the CITY can address the safety and/or security issue. Except for normal wear and tear occurring in the ordinary course of business, MEDIFIT agrees to repair or replace any damage or injury done to the Premises, or Personal Property, or any part thereof, caused by MEDIFIT or MEDIFIT's agents, employees or invitees, at MEDIFT's own cost and expense. If MEDIFIT fails to make such repairs or replacements promptly, CITY may, at its option, make such repairs or replacements, and MEDIFIT shall repay the cost thereof to the CITY within ten (10) days of written demand However, for any repair work, costing over Five Hundred and no/100 Dollars ($500.00) to be performed by MEDIFIT or MEDIFIT's agents, MEDIFIT shall not perform such repair work without the CITY's prior written consent. Any repairs or replacements in or to the Premises, other than repair work in emergency situations, which would require an expenditure exceeding Five Thousand and no/100 Dollars ($5,000.00) and which constitute a "public project" under Section 20161 of the California Public Contract Code, shall be contracted for/by CITY and let to the lowest responsible bidder after notice. 7.3 CITY Right to Inspect. MEDIFIT shall permit the CITY to enter the Premises at all times to inspect the Premises, provided, however, that such entry shall not unreasonably interfere with MEDIFIT's operation of the Premises. Nothing contained in this Article 7, however, shall be construed as creating any duty on the part of the CITY to do any work which, under any provision of this Agreement, MEDIFIT may be required to do. 7.4 Prevailing Wages. MEDIFIT shall, pay prevailing wages if required by law for work performed on the Premises. ARTICLE 8 FEES AND PAYMENT TERMS 8.1 Fees. The CITY shall pay MEDIFIT a monthly base management fee, actual payroll and staffing expenses and marketing and administrative costs as set forth in this Article 8.1 and Exhibit B. 8.1.1 Base Management Fee. As compensation for the Services, the CITY shall pay MEDIFIT a monthly base management fee (the "Base Management Fee") for each month beginning November 4, 2015 (prorated for any partial months at the beginning or end of the Term) in the amount of $5,000 per month throughout the Term and the Base Management Fee shall be invoiced monthly. The Base Management Fee shall be due thirty (30) days after receipt of invoice therefor. 8.1.2 Payroll and Staffing Expenses. MEDIFIT shall recruit, hire and employ, as employees of MEDIFIT, all persons who will work at, or provide services at the Premises. Monthly payroll and staffing expenses are estimated as set forth in Exhibit B and will be charged to the CITY as an operating expense only to the extent such Managed Personnel are actually employees of MEDIFIT. 7 Service Agreement Between City and MediFit 9-4-15 19 of 104 8.1.3 Marketing and Administrative Costs. MEDFIT shall, provide such items as general administrative supplies and marketing materials necessary for the operation of the Premises. Monthly marketing and administrative costs are estimated as set forth in Exhibit B and the cost of the marketing materials and the administrative supplies shall be paid for by the City within thirty (30) days after receipt of an invoice setting forth the amount of such costs. 8.2 Payment Terms. The CITY shall pay MEDIFIT ninety percent (90%) of the estimated monthly operating expenses as set forth in Exhibit B on or before the first (1 m) day of every month. At the end of the month MEDIFIT shall submit an invoice for the remaining balance due. 8.2.1 90% Monthly Payment. Commencing on December 1, 2015 the CITY will pay to MEDIFIT, on or before the first (1st) day of every month, an amount equal to ninety percent (90%) of MEDIFIT's budgeted monthly Base Management Fee, estimated payroll and staffing expenses, and estimated marketing and administrative costs, as set forth in Exhibit B. The initial payment shall be payable on the first (1st) day of December 2015. The remainder of the actual monthly payment shall be paid as set forth in 8.1.3. 8.1.3 Monthly Balance Due Payment. MEDIFIT shall submit an invoice for the remaining balance due each month in which Services are rendered. To the extent applicable, each invoice will reflect the monthly Base Management Fee, actual payroll and staffing expenses and actual marketing and administrative costs together with all amounts payable to MEDIFIT as set forth in Exhibit B, less any payments or revenue received during the month in which Services are rendered. Upon request, MEDIFIT shall submit to the CITY supporting documentation for payroll and staffing expenses and marketing and administrative costs. Supporting documentation may be, but is not limited to, copies of payroll and receipts for purchases. 8.3 Not to Exceed Amount. MEDIFIT agrees that the combined base management fee, payroll and staffing fees, and marketing and administrative costs, shall not exceed a total of $650,000 over the Term of this Agreement. Should the parties agree to extend the Service Agreement, Article 8.3 must be negotiated and mutually agreed upon. 8.4 Third Party Rental Groups. The CITY will separately collect and retain rental revenue from third party rental groups. MEDIFIT shall allow all CITY approved third party rental groups to use the Premises and shall give priority use to CITY requests for either third party rental groups or CITY use for events. 8.5 Revenue Collected by MEDIFIT. Revenue collected by MediFit for its programing of open swim, learn to swim, and exercise classes will be collected and handled by MEDIFIT. MEDIFIT shall submit daily cash receipts to the CITY each month with the monthly balance due invoice. 8.6 Notwithstanding any other provision contained herein, in the event that CITY's outstanding balance for fees and charges to MEDIFIT is greater than ninety (90) days past due, MEDIFIT will have the right to immediately and unilaterally terminate this Agreement. 8 Service Agreement Between City and MediFit 9-4-15 20 of 104 8.7 The CITY shall be responsible for all sales, use and excise taxes, and any other similar taxes, duties and charges of any kind imposed by any federal, state or local governmental entity on any amounts payable by the CITY hereunder. ARTICLE 9 TAXES 9.1 Definition. "Taxes" shall mean all taxes, governmental bonds, special assessments, charges, or transfer taxes, license and trans ction fees, including, but not limited to, (i) any state, local, federal income tax, or any real or personal property tax, (ii) increases in taxes attributable to MEDIFIT's operation of the Premises, or (iii) any taxes which are essentially payments to a govenunental agency, other than the CITY, for the right to make improvements to the Premises. MEDWIT recognizes and agrees that this agreement may create a possessory interest subject to property taxation and that MEDIFIT may be subject to the payment of taxes levied on such interest. MEDIFIT agrees to pay, before delinquency, all taxes, assessments and fees assessed or levied upon the Premises. 9.2 Responsibility for Payment of Taxes. The CITY shall not be obligated to pay any Taxes accruing against MEDIFIT. ARTICLE 10 INDEMNIFICATION AND INSURANCE 10.1 MEDIFIT's Indemnity. MEDIFIT agrees to defend, indemnify and bold harmless the City of National City, its officers and employees, against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suites, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of the MEDIFIT'S performance or other obligations under this Agreement; provided, however, that this indemnification and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the CITY, its agents, officers, or employees. The indemnity, defense, and hold harmless obligations contained herein shall survive the termination of this Operating Agreement for any alleged or actual omission, act, or negligence under this Operating Agreement that occurred during the term of this Operating Agreement. 10.2 Insurance. MEDIFIT, at its sole cost and expense, shall purchase and maintain, and shall require its subcontractors, when applicable, to purchase and maintain throughout the term of this Service Agreement, the following checked insurance policies: A. If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence. B. Automobile Insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include owned, non -owned, and hired vehicles ("any auto"). The policy shall name the CITY and its officers, agents and 9 Service Agreement Between City and MediFit 9-4-15 21 of 104 employees as additional insureds, and a separate additional insured endorsement shalt be provided. C. Commercial General Liability Insurance, with minimum limits of $5,000,000 per occurrence and $10,000,000 aggregate, covering all bodily injury and property damage arising out of its operations under this Service Agreement. The policy ghal1 name the CITY and its officers, agents and employees as additional insureds, and a separate additional insured endorsement shall be provided. The general aggregate limit must apply solely to this "project" or "location". D. Workers' Compensation Insurance in an amount sufficient to meet statutory requirements covering all of MEDIFIT' S employees and employers' liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the City. Said endorsement shall be provided prior to commencement of work under this Service Agreement. If MEDIFIT has no employees subject to the California Workers' Compensation and Labor laws, MEDIFIT shall execute a Declaration to that effect. Said Declaration shall be provided to MEDIFIT by CITY. E. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, employees, and volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CITY of cancellation or material change. F. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the MEDIFIT shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Service Agreement. In addition, the "Lutho" date must be on or before the date of this Service Agreement. G. Insurance shall be written with only California admitted companies that hold a current policy holder's alphabetic and financial size category rating of not less than A VIII according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the CITY'S Risk Manager. In the event coverage is provided by non -admitted "surplus lines" carriers, they must be included on the most recent California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements. H. This Service Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY'S Risk Manager. If the MEDIFIT does not keep all of such insurance policies in full force and effect at all times during the terms of this Service Agreement, the CITY may elect to treat the failure to maintain the requisite insurance as a breach of this Service Agreement and terminate the Service Agreement as provided herein. I. All deductibles and self -insured retentions in excess of $10,000 must be disclosed to and approved by the CITY. ARTICLE 11 TERMINATION 11.1 This Service Agreement may be terminated with or without cause by the CITY. Termination without cause shall be effective only upon 60-day's written notice to MEDIFIT. During said 60-day period MEDIFIT shall perform all services in accordance with this Service Agreement. This Service Agreement may also be terminated immediately by the CITY for cause 10 Service Agreement Between City and MedTit 9-4-15 22 of 104 in the event of a material breach of this Service Agreement, misrepresentation by MEDIFIT in connection with the formation of -this Service Agreement or the performance of services, or the failure to peafurm services as directed by the CITY. Termination with or without cause shall be effected by delivery of written Notice of Termination to MEDIFIT as provided for herein. The CITY further reserves the right to inomediately terminate this Service Agreement upon: (1) the filing of a petition in bankruptcy affecting MEDIFIT; (2) a reorganization of MEDIFIT for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of MEDIFIT. 11.2 This Service Agreement may be terminated by MEDIFIT by notice to the CITY, at any time if (1) the CITY becomes insolvent or admits its inability to pay its debts generally as they become due, (2) the CITY becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy or insolvency law, which is not fully stayed within seven (7) days or is not discussed or vacated within forty-five (45) days after filing, (3) the CITY is dissolved or liquidated or takes any action for such purpose, (4) the CITY makes a general assignment for the benefit of creditors, or (5) the CITY has a receiver, trustee, custodian or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material portion of its property or business. 11.3 Upon termination of this Agreement, within thirty (30) days of the termination MEDIFIT shall return to the CITY all property of the CITY, and MEDIFIT shall remove all property of MEDIFIT at MEDIFIT's expense. ARTICLE 12 HAZARDOUS MATERIALS 12.1 Hazardous Materials Laws -Definition. As used in this Article, the term "Hazardous Materials' Laws" means any and all federal, state or local laws or ordinances, rules, decrees, orders, regulations or court decisions (including the so-called "common law"), including without limitation the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C., sec.9601 et seq.), the Hazardous Materials Transportation Act, as amended (49 U.S.C., sec.1801 et seq.), and the Resource Conservation and Recovery Act of 1986, as amended (42 U.S.C., sec. 6901 et seq), relating to hazardous substances, hazardous materials, hazardous waste, toxic substances, environmental conditions on, under or about the Premises, soil and ground water conditions or other similar substances or conditions. 12.2 Hazardous Materials - Definition. As used in this Section the term "Hazardous Materials" means any chemical, compound, material, substance or other matter that: 12.2.1 is a flammable, explosive, asbestos, radioactive nuclear medicine, vaccine, bacteria, virus, hazardous waste, toxic, overtly injurious or potentially injurious material, whether injurious or potentially injurious by itself or in combination with other materials; 11 Service Agreement Between City and MediFit 9-4-15 23 of 104 12.2.2 is controlled, referred to, designated in or governed by any Hazardous Materials Laws; 12.2.3 gives rise to any reporting, notice or publication requirements under any Hazardous Materials Laws, or 12.2.4 is any other material or substance giving rise to any liability, responsibility or duty upon the CITY or MEDIFIT with respect to any third person under any Hazardous Materials Law. 12.3 MEDIFIT Representations and Warranties. MEDIFIT represents and warrants that, during the Term or any extension thereof, MEDIFIT shall comply with the following provisions of this Section unless otherwise specifically approved in writing by CITY, subject to the terms and conditions of MEDIFIT maintenance obligations provided elsewhere in this Service Agreement: 12.3.1 MEDIFIT shall not cause or authorize any Hazardous Materials to be brought, kept or used in or about the Premises by MEDIFIT, its agents, employees, assigns, contractors or invitees, except as required by MEDIFITs permitted use of the Premises in the normal course of operations; 12.3.2 Any handling, transportation, storage, treatment or usage by MEDIFIT of Hazardous Materials that is to occur on the Premises following the Commencement Date shall be in compliance with all applicable Hazardous Materials Laws; 12.3.3 Any leaks, spills, release, discharge, emission or disposal of Hazardous Materials which may occur on the Premises following the Commencement Date shall be promptly reported in writing to CITY; 12.3.4 No friable asbestos shall be constructed, placed on, deposited, stored, disposed of, or located by MEDIFIT in the Premises; 12.3.5 No underground improvements, including but not limited to treatment or storage tanks, or water, gas or oil wells shall be located by MEDIFIT on the Premises 'without CITY's prior written consent; 12.3.6 MEDIFIT shall promptly supply the CITY with copies of all notices, reports, correspondence, and submissions trade by MEDIFIT to the United States Environmental Protection Agency, the United Occupational Safety and Health Administration, and any other local, state or federal authority which requires submission of any information concerning environmental matters or hazardous wastes or substances pursuant to applicable Hazardous Materials' Laws with respect to the Premises; and 12,3.7 MEDIFIT shall promptly notify the CITY of any liens threatened or attached against the Premises pursuant to any Hazardous Materials' Law. ARTICLE 13 ASSIGNMENT 12 Service Agreement Between City and MediFit 9-4-15 24 of 104 13.1 CITY's Consent Required. MEDIFIT shall not voluntarily or involuntarily assign or otherwise transfer all or any portion of its rights and duties under this Agreement without the CITY's prior written consent. Any attempted assignment or transfer without the CITY's prior written consent shall be void. ARTICLE 14 DEFAULTS BY MEDIFIT; REMEDIES 14.1 Events of Default; Remedies. If MEDIFIT neglects or fails to perform or observe any of its obligations under the terms, covenants, or conditions contained in this Service Agreement within thirty (30) days after written notice of default or, when more than thirty (30) days shall be required because of the nature of the default, if M:EDIFIT fails to cure such default after written notice thereof, then MEDIFIT shall be liable to the CITY for any and all damages sustained by the CITY as a result of MEDIFIT breach and the CITY may terminate this Service Agreement. ARTICLE 15 DEFAULTS BY CITY; REMEDIES 15.1 Events of Default; Remedies. If the CITY neglects or fails to perform or observe any of its obligations under the terms, covenants, or conditions contained in this Service Agreement within thirty (30) days after written notice of default or, when more than thirty (30) days shall be required because of the nature of the default, if the CITY fails to cure such default after written notice thereof, then the CITY shall be liable to MEDIFIT for any and all damages sustained by MEDIFIT as a result of the CITY's breach and NIEDIFIT may terminate this Service Agreement. ARTICLE 16 DAMAGE OR DESTRUCTION 17.1 CITY Duty to Repair Casualty. Except as provided in this article and subject to the terms and conditions of MEDIFIT maintenance obligations provided elsewhere in this Service Agreement, should the Premises be damaged by fire, earthq»ake, or any other identifiable event of a sudden, unexpected, or unusual nature (Casualty), the CITY, at the CITY's sole discretion may repair any damages to the Premises, and may repair, restore and replace any such damaged or destroyed Fixtures, Improvements or Personal Property. In the event the City decides not to repair any damage, and such damage renders the Premises inoperable, the City may terminate this agreement as provided in Article 11 (Termination). 17.2 No Abatement. In the event of reconstruction, replacement or repair, MEDIFIT shall continue its operations on the Premises during any such period to the extent reasonably practicable from the standpoint of prudent business management, and in continuing compliance with applicable laws and regulations. MEDIFIT shall not be entitled to any compensation or damages from the CITY for loss of use of the whole or any part of the Pieiuises, MEDIFIT's Personal Property, or any inconvenience or annoyance occasioned by such damage, reconstruction or replacement. 13 Service Agreement Between City and MediFit 9-4-15 25 of 104 17.3 Major Destruction. Notwithstanding any of the foregoing provisions of this Article to the contrary, if, at any time after the Commencement Date, (i) the Improvements are dat„aged or destroyed to the extent of more than twenty-five percent (25%) of their replacement cost, or (ii) the damage is such that the Improvements cannot be repaired and restored within one hundred and eighty (180) days after the Casualty, then MEDIFIT shall have the right to terminate this Service Agreement upon thirty (30) days' prior written notice to CITY. ARTICLE 18 EMINENT DOMAIN 18.1 Condemnation. If all of the Premises is taken under eminent domain proceedings by a party other than CITY, or, if less than all of the Premises is taken under such proceeding and the part taken substantially impairs the ability of MEDIFIT to use the remainder of the Premises for the purposes permitted by this Service Agreement, then MEDIFIT may terminate this Service Agreement as of the date that the condemning authority takes possession by delivery of written notice of such election within twenty (20) days after MEDIFIT has been notified of the taking or, in the absence thereof, within twenty (20) days after the condemning authority shall have taken possession. 18.2 Continuation of Service Agreement After Condemnation. if this Service Agreement is not terminated by MEDIFIT, it shall remain in full force and effect as to any portion of the Premises remaining, and this Service Agreement will end as of the date possession ofthe part taken by the public entity as to the part of the Premises that is taken. 18.3 Award. All monies awarded in any condemnation shall belong to the CITY. The CITY shall have no liability to MEDIFIT for any award not provided by the condemning authority ARTICLE 19 SALE OR MORTGAGE BY CITY 19.1 Sale or Mortgage. Subject to MEDIFIT rights under this Service Agreement, CITY may, pursuant to existing and subsequently enacted CITY ordinances and State laws, at any time and without the consent of MEDIFIT, sell, purchase, exchange, transfer, assign, lease, encumber or convey CITY interest in whole or in part, in the Park (collectively referred to in this Article as a "Sale"). CITY shall provide to MEDIFIT written notice of CITY intent to a Sale pursuant to this Article at least ninety (90) days prior to said proposed transfer. 19.2 Release on Sale. From and after a Sale ofthe CITY's entire interest in the Premises, upon payment of all amounts due or owing to MediFit, the CITY shall be released from all liability to MEDIFIT and MEDIFIT successors and assigns arising from this Agreement because of any act, occurrence or omission of the CITY occurring after such Sale. ARTICLE 20 SUBORDINATION; ATTORNMENT 14 Service Agreement Between City and MediFit 9-4-15 26 of 104 20.1 Subordination. Without the necessity of any other document being executed and delivered by MEDIFIT, this Service Agreement is and shall be junior, subject and subordinate to any existing or future permits or approvals issued by the United States of America or any local, State or federal agency affecting the control or operation of the Premises; MEDWIT shall be bound by the terms and provisions of such permits or approvals. In addition, this Service Agreement is and shall also be subject, subordinate and junior to all mortgages, deeds of trust, and other security instruments of any kind covering the Premises, or any portion thereof, as of the Commencement Date of this Service Agreement. ARTICLE 21 CITY'S RIGHT OF ACCESS 21.1 Right of Entry. The CITY, its agents, employees, and contractors may enter the Premises at any time in response to an emergency, and, at reasonable hours to (a) inspect the Premises and Improvements; (b) determine whether MEDIFIT is complying with its obligations in this Service Agreement (including its obligations with respect to compliance with Hazardous Materials Laws); (c) post notices of non -responsibility or similar notices; (d) inspect the progress of construction of any improvement or (e) make repairs that this Service Agreement requires or allows the CITY to make, or make repairs to any adjoining space or utility services, or make repairs, alterations, or improvements to any other portion of the Premises; provided, however, that all work will be done as promptly as reasonably possible and so as to cause as little interference to MEDIFIT as reasonably possible. ARTICLE 22 NOTICES 22.1 Notices. Whenever in this Service Agreement it shall be required or permitted that notice or demand be given or served by either party to this Service Agreement to or on the other, such notice or demand shall be in writing, mailed or personally delivered to the other party at the addresses specified below. Mailed notices shall be sent by United States Postal Service, postage prepaid and shall be deemed to have been given, delivered and received three (3) business days after the date such notice or other communication is posted by the United States Postal Service. All other such notices or other communications shall be deemed given, delivered and received upon actual receipt. Either party may, by written notice delivered pursuant to this provision, at any time designate a different address to which notices shall be sent. CITY: City of National City Attention: Leslie Deese, City Manager City of National City 1243 National City Boulevard National City, CA 91950-4301 MEDIFII': MEDIFIT Community Services LLC Attention: Dan Burns, Chief Executive Officer and V. Carl Walker, General Council 25 Hanover Road 15 Service Agreement Between City and MedWit 9-4-15 27 of 104 Building A, Suite 104 Florham Park, New Jersey 07932 ARTICLE 23 NONDISCRIMINATION 23.1 Nondiscrimination. MEDIFIT hereby covenants by and for itself, its successors, assigns and all persons claiming under or through it, that this Service Agreement is made and accepted upon and subject to the condition that there sha 1 be no discrimination against, or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the use, operation, or enjoyment of the Premises. ARTICLE 24 RECORDS, ACCOUNTS AND AUDITS 24.1 MEDIFIT Duty to Keep Records. MEDIFIT shall, at all times during the Term, and for a period of five (5) years following expiration or earlier termination of this Service Agreement, keep or cause to be kept, true and complete books, records and accounts of all financial transactions in the operation of all business activities, of whatever nature, conducted pursuant to the rights granted by this Agreement. The books, records and accounts must be supported by source documents such as sales slips, cash register tapes, purchase invoices or other pertinent documents. 24.2 CITY's Right to Audit. The CITY shall have the right at any reasonable times, upon reasonable notice, to examine and perform audits of MEDIFIT's records pertaining to its operations on the Premises. The cost of said audits shall be borne by the CITY; however, MEDIFIT shall provide to the CITY at MEDIFIT's expense, necessary data to enable CITY to fully comply with each and every requirement of the State of California or by the United States of America for information or reports relating to this Service Agreement and to MEDIFIT's use of the Premises. ARTICLE 25 GENERAL PROVISIONS 25.1 Authority. MEDIFIT represents and warrants that it has full power and authority to execute and fully perform its obligations under this Service Agreement pursuant to its governing instruments, without the need for any further action, and that the person executing this Service Agreement on behalf of MEDIFIT is the duly designated agent of MED1FIT and is authorized to do so. 25.2 Captions. The captions and headings appearing in this Service Agreement are inserted for convenience only and in no way define, limit, construe, or describe the scope or intent of the provisions of this Service Agreement. 16 Service Agreement Between City and MediFit 9-4-15 28 of 104 25.3 CITY Approval. Except where stated herein to the contrary, the phrases "CTTY approval," and "CITY written approval" or such similar phrases shall mean approval of the City Manager of National City or said person's representative as authorized by said person in writing. 25.4 Compliance with Laws. MEDIFIT, shall procure, maintain and hold available for the CITY's inspection, any governmental license or permit required for the proper and lawful conduct of MEDIFIT operation of the Premises. MediFit shall invoice the CITY for expenses related to any governmental license or permit required for the proper and lawful conduct of MEDIFIT operation of the Premises. Except, the expense of the environmental health permit to operate a pool issued by the County of San Diego, Department of Environmental Health shall be paid by the CITY to the County of San Diego. MEDIFIT shall not use the Premises for any use or purpose in violation of the laws of the United States of America, or the laws, ordinances, regulations, orders or requirements of the State of California, the County of San Diego, the CITY, or of other lawful authorities. MEDIFIT shall, at its expense, comply promptly with all applicable statutes, laws, ordinances, rules, regulations, orders, covenants and restrictions of record, and requirements in effect during the Term (Laws or Others), regulating the use by MEDIFIT of the Premises. 25.5 Cumulative Remedies. In the event of a default under this Service Agreement, each party's remedies shall be limited to those remedies set forth in this Service Agreement; any such remedies are cumulative and not exclusive of any other remedies under this Service Agreement to which the non -defaulting party may be entitled. 25.6 Entire Agreement. This Service Agreement, together with all addenda, exhibits and riders attached hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof, and all prior or contemporaneous agreements, understandings and representations, oral or written, are superseded. 25.7 Exhibits. All exhibits referred to herein are attached hereto and incorporated by reference: Exhibit A: Depiction of Las Palmas Pool Exhibit B: Budget 25.8 Force Majeure. If either party is prevented or delayed from performing any act or discharging any obligation hereunder, because of any and all causes beyond either party's reasonable control, including unusual delays in deliveries, abnormally adverse weather conditions, unavoidable casualties, strikes, labor disputes, inability to obtain labor, materials or equipment, acts of God, governmental restrictions, regulations or controls, any hostile government actions, civil commotion and fire or other casualty, legal actions attacking the validity of this Service Agreement or the CITY or MEDIFIT operations of the Premises, or any other casualties beyond the reasonable control of either party ("Force Majeure"), performance of such act shall be excused for the period of such delay, and the period for performance of such act shall be extended for a period equivalent to the period of such delay. Force Majeure shall not include any bankruptcy, insolvency, or other financial inability on the part of either party hereto. 17 Service Agreement Between City and MediFit 9-4-15 29 of 104 25.9 Governing Law. This Service Agreement shall be governed, construed and enforced in accordance with the laws of the State of California. 25.10 Independent Contractor. MEDIFIT acknowledges that it is an independent contractor, that it alone retains control of the manner of conducting its activities in furtherance of this Service Agreement and that it, as well as any persons, contractors or agents it may employ, are not employees of CITY for any purpose. 25.11 Interpretation. The provisions of this Service Agreement shall be liberally construed to effectuate its purpose. The language of all parts of this Service Agreement shall be construed simply according to its plain meaning and shall not be construed for or against either party. 25.13 Modification. The provisions of this Service Agreement may not be modified, except by a written amendment signed by both parties. 25.14 Partial Invalidity. If any provision of this Service Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Service Agreement shall not be affected thereby. Each provision shall be valid and enforceable to the fullest extent permitted by law. 25.15 Successors & Assigns. This Service Agreement shall be binding on and inure to the benefit of the parties and their successors and assigns, except as may otherwise be provided herein. MEDIFIT shall not assign this Service Agreement to any other party unless approved in writing by CITY. 25.16 Time of Essence. Time is of the essence of each and every provision of this Service Agreement. 25.17 Waiver. No provision of this Service Agreement or the breach thereof shill be deemed waived, except by written consent of the party against whom the waiver is claimed. IN WITNESS WHEREOF, the CITY and MEDIFIT have duly executed this Service Agreement as of the day and year first above written. 18 Service Agreement Between City and MediFit 9-4-15 30 of 104 CITY OF NATIONAL CITY (CITY) By: Ron Morrison, Mayor PROVED AS TO FORM: r. q 4 i 1thUJ Claudia Gaci . Silva City Attorney MEDIFIT COMMUNITY SERVICES LLC (MEDIFIT) (Corporation — signatures of two corporate officers required) By: 6C (Name) Bill Bourque (Print) President, Account Management & Field Operations (Title) By: (Name) {Print) (Title) 1 19 Service Agreement Between City and MediFit 9-4-15 31 of 104 EXHIBIT A DEPICTION OF THE PREMISES 20 Service Agreement Between City and MediFit 9-4-15 32 of 104 EXHIBIT B BUDGET 'Y16 FY17 Totals Totals GRAND TOTAL Expenses Payroll and Staffing Expenses Salary -Managers $ 33,000 $ 66,000 $ 99,000 Wages -Guards for Recreational Swim & Lessons* $ 37,850 $ 76,330 $ 114,180 Wages -Administrative staff for recreational swim/public access $ 8,116 $ 8,724 $ 16,840 Wages -Learn to Swim Classes/Lessons* $ 8,417 $ 16,834 $ 25,250 Wages-Courses/Certification/Clinics $ $ $ z Wages -Guards for Sweetwater Unified High School District programs $ 14,714 $ 35,448 $ 50,162 Wages -Guards for Southwestern College programs $ 14,714 $ 35,448 $ 50,162 Wages -Aquatic Group Exercise Classes $ 4,890 $ 13,008 $ 17,898 Payroll Burden-26% of payroll $ 31,642 $ 61,699 $ 93,341 Sub -Total $ 153,343 $ 313,491 $ 466,834 Marketing and Administrative Costs Advertising & Marketing -Other $ 3,000 $ 6,000 Dues & Membership $ $ 200 Meeting Expense (mandatory monthly staff meetings) $ 1,225 $ 2,450 Uniforms $ 500 $ 500 Locker Room Supplies $ 3,000 $ 6,000 Office Supplies & Expenses $ 900 $ 1,800 Travel -Mileage Reimbursement/Parking/Tolls $ 350 $ 350 Program Supplies & Expenses $ 1,500 $ 2,400 Sub -Total $ 10,475 $ 19,700 Base Management Fee $ 35,000 $ 60,000 $ 9,000 $ 200 $ 3,675 $ 1,000 $ 9,000 $ 2,700 $ 700 $ 3,900 $ 30,175 $ 95,000 Total Expenses $198,818 $ 393,191 Revenue Recreational Swim $ $ Learn to Swim Classes/Lessons $ $ Courses/Certification/Clinics $ $ $ 592,009 Total Revenue $ - $ 21 Service Agreement Between City and MediFit 9-4-15 33 of 104 Service Agreement Between City and MediFit 9-4-15 34 of 104 RESOLUTION NO. 2015 — 165 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A 20-MONTH SERVICE AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND MEDIFIT COMMUNITY SERVICES, LLC, TO PROVIDE AQUATIC SERVICES AT LAS PALMAS POOL IN AN AMOUNT NOT TO EXCEED $650,000; ESTABLISHING A GENERAL FUND COMMUNITY SERVICES CONTRACT SERVICES APPROPRIATION OF $200,000 FOR MEDIFIT MANAGEMENT FEES AND OPERATING COSTS; INCREASING THE GENERAL FUND COMMUNITY SERVICES BUILDING SERVICES INTERNAL CHARGES APPROPRIATION BY UP TO $144,300 TO ACCOUNT FOR GAS, ELECTRIC, WATER, AND CHEMICAL COSTS; AND THE ESTABLISHING A GENERAL FUND REVENUE BUDGET TO ACCOUNT FOR USER FEES IN THE AMOUNT OF $112,500 WHEREAS, the City of National City owns the real property commonly known as Las Palmas Pool, located at 1800 East 22nd Street, National City (the "Premises"); and WHEREAS, MediFit is a privately -held fitness and wellness management and consulting company and is in the business of designing, managing, and operating all aspects of mixed use health, fitness and aquatics centers similar to Las Palmas Pool; and WHEREAS, the City desires to enter into an Agreement with MediFit for the operation the Las Palmas Pool with MediFit programs serving the local community; and WHEREAS, pursuant to the Agreement the City will be responsible for repair and maintenance of the Premises, which includes improvements, landscaping,, janitorial, facility maintenance, chemical maintenance, and information technology; and WHEREAS, MediFit will be responsible for the operation of the Premises, which includes, personnel, programming, events, and operating procedures and policies; and WHEREAS, an appropriation of $200,000 is necessary for this fiscal year to cover MediFit's management fee and operating costs. The appropriation will be covered by a General Fund fund balance where additional revenues would offset the cost to operate the pool; and WHEREAS, an increase to the Community Services Building Service internal charges line item for up to $144,300 is required for the cost of utilities and; chemicals associated with the operation of Las Palmas Pool, and an equal decrease to the General Fund and Library Fund Building Services internal charges Tine items, making it a net zero increase to the General Fund. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute a 20-month Service Agreement, with MediFit Community Services, LLC, to provide aquatic services at Las Palmas Pool. BE IT FURTHER RESOLVED that the City Council authorizes the establishment of a General Fund Community Services Contract Services appropriation of $200,000. BE IT FURTHER RESOLVED that the City Council authorizes an increase to the General Fund Community Services Building Services internal charges appropriation by up to $144,300. 35 of 104 Resolution No. 2015 — 165 Page Two BE IT FURTHER RESOLVED that the City Council authorizes the establishment of a'General Fund revenue budget to account for user fees of $112,500. PASSED and ADOPTED this 3rd day of Novembe 2015. on orrison, Mayor ATTEST: c e! R. Dalla ic Mi , ty Clerk 36 of 104 Passed and adopted by the Council of the City of National City, California, on November 3, 2015 by the following vote, to -wit: Ayes: Councilmembers Cano, Mendivil, Morrison, Rios, Sotelo-Solis. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California MICHAEL R. DALLA City Clerk of the City of National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2015-165 of the City of National City, California, passed and adopted by the Council of said City on November 3, 2015. L City Ci rk of the City of motional City, California By: Deputy 37 of 104 CALtFORNiA N IONAL Gin • meoRPORA'Y D J FIRST AMENDMENT TO THE SERVICE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND MEDIFIT COMMUNITY SERVICES, LLC, D.B.A. EXOS This First Amendment ("Amendment") to the Service Agreement by and between the City of National City and MediFit Community Services, LLC ("Service Agreement"), is entered into this 7th day of December, 2016, by and between the City of National City (the "City") and MediFit Community Services, LLC, d.b.a. EXOS ("EXOS" or "MEDIFIT"). RECITALS WHEREAS, the City and MEDIFIT, previously entered into the Service Agreement entitled "Service Agreement by and Between the City of National City and MediFit Community Services, LLC, for the Operation of Las Palmas Pool" dated November 4, 2015; WHEREAS, in the Service Agreement the City engages MEDIFIT to operate the real property commonly known as Las Palmas Pool, located at 1800 E. 22nd Street, National City, California (the "Premises") to provide aquatic programs serving the local community; WHEREAS, Article 1.1, Term, establishes the term of the Service Agreement as November 4, 2015 through June 30, 2017; and WHEREAS, Article 1.2, Option to Extend Term, allows an extension of the Service Agreement upon mutual agreement of the parties no less than six (6) months prior to the end of the Term. AMENDMENT TO SERVICE AGREEMENT NOW THEREFORE, the City and EXOS agree as follows: 1. All references to MEDIFIT in the Service Agreement shall be changed to EXOS. 2. The City and EXOS hereby delete Exhibit B to the Service Agreement in its entirety and replace it with the attached Exhibit B which revises the monthly base management fee, actual payroll and staffing expenses, and marketing and administrative costs. 3. Extension of Term. In accordance with Section 1.2 of the Service Agreement, the City, MEDIFIT and EXOS hereby agree to extend the Tenet of the Service Agreement through June 30, 2018. 1 2016 First Amendment to Agreement Between City of National City and EXOS 38 of 104 4. Article 3.1.2, Permitted Uses, is hereby amended by adding the following as the last sentence thereof: "Article 3.1.2 is also being fulfilled by providing learn to swim classes for third grade students in the National School District." 5. Article 3.2, Hours of Service, is hereby amended and restated as follows: "EXOS may provide programming between the hours of 5:00 a.m. and 10:00 p.m. seven (7) days a week. Hours of service may be changed upon mutual agreement." 6. Article 4.1.9.2 is hereby added to the Service Agreement as follows: "Social Media. EXOS shall be responsible for social media marketing for the Premises and will adhere to the City's Social Media Policy." 7. Article 8.1.1, Base Management Fee, is hereby amended by deleting the last sentence thereof and adding in its place the following: "Notwithstanding anything to the contrary in the foregoing, beginning July 1, 2017, the City shall pay EXOS a monthly base management fee (the "Base Management Fee") for each month in the amount of $5,325 per month, excluding 5 (five) months during learn to swim classes for the National School District, when the monthly Base Management Fee shall be $6,160. The Base Management Fee shall be invoiced monthly and shall be due thirty (30) days after receipt of invoice therefor." 8. Article 8.2, Payment Terms, is hereby amended and restated as follows: "At the end of each month EXOS shall submit to the City an invoice for monthly operating expenses as set forth in Exhibit B." 9. Article 8.2.1 is hereby deleted in its entirety and replaced with: "8.2.1 [Reserved.]" 10. Article 8.1.3 is hereby deleted in its entirety and replaced with: "8.2.2 Monthly Balance Due Payment. EXOS shall submit an invoice each month in which Services are rendered. To the extent applicable, each invoice will reflect the monthly Base Management Fee, actual payroll and staffing expenses, and actual marketing and administrative costs together with all amounts payable to EXOS, as set forth in Exhibit "B". Upon request, EXOS shall submit to the City supporting documentation for payroll and staffing expenses and marketing and administrative costs. Supporting documentation may be, but is not limited to, copies of payroll and receipts for purchases." 2 2016 First Amendment to Agreement Between City of National City and EXOS 39 of 104 11. Article 8.3, Not To Exceed Amount, is hereby amended and restated as follows: "EXOS agrees that the combined base management fee, payroll and staffing fees, and marketing and administrative costs, shall not exceed a total of $464,000 over the Term of this Agreement. Should the parties agree to extend the Service Agreement, Article 8.3 must be negotiated and mutually agreed upon." 12. Article 8.5, Revenue Collected by EXOS, is hereby amended and restated as follows: "Revenue collected by EXOS for its programing of open swim, learn to swim, and exercise classes will be collected and handled by EXOS. EXOS shall submit cash and credit card receipts to the City two (2) times per week or at any time the amount of cash at the Premises exceeds $500.00." 13. Article 10.1 EXOS Indemnity, is hereby amended and restated as follows: "EXOS agrees to defend, indemnify and hold harmless the City of National City, its officers, employees, and volunteers against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of EXOS' performance or other obligations under this Service Agreement; provided, however, that this indemnification and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers, employees or volunteers. The indemnity, defense, and hold harmless obligations contained herein shall survive the termination of this Service Agreement for any alleged or actual omission, act, or negligence under this Service Agreement that occurred during the term of this Service Agreement." 14. Article 22.1, Notices, is hereby amended and restated as follows: "Whenever in this Service Agreement it shall be required or permitted that notice or demand be given or served by either party to this Service Agreement to or on the other, such notice or demand shall be in writing, mailed or personally delivered to the other party at the addresses specified below. Mailed notices shall be sent by United States Postal Service, postage prepaid and shall be deemed to have been given, delivered and received three (3) business days after the date such notice or other communication is posted by the United States Postal Service. All other such notices or other communications shall be deemed given, delivered and received upon actual receipt. Either party may, by written notice delivered pursuant to this 3 2016 First Amendment to Agreement Between City ofNational City and EXOS 40 of 104 provision, at any time designate a different address to which notices shall be sent. CITY: Stacey Stevenson, Deputy City Manager City of National City 140 East 12th Street National City, CA 91950-4301 EXOS: Medifit Community Services, LLC Attention: Dan Burns, Chief Executive Officer V. Carl Walker, General Council 25 Hanover Road Building A, Suite 104 Florham Park, New Jersey 07932" 15. Article 25.3, City Approval, is hereby amended and restated as follows: "Except where stated herein to the contrary, the phrases "CITY approval," and "CITY written approval" or such similar phrases shall mean approval of the City Manager or Deputy City Manager of National City or said person's representative as authorized by said person in writing." 16. Article 25.18 is hereby added to the Service Agreement as follows: Alcohol. Consumption of alcohol on the Premises is not permitted. 17. Except as specifically amended by this Amendment, the parties agree that each and every term of the Service Agreement shall remain in full force and effect. [Signature Page to Follow] 2016 First Amendment to Agreement Between City of National City and EXOS 41 of 104 IN WITNESS THEREOF, the parties hereto have executed this First Amendment on the date and year first written above. CITY OF NATIONAL CITY By: MEDIFIT COMMUNITY SERVICES, LLC, d.b.a. EXOS Ron Morrison By: +' Mayor Bill Bourque, President Account Management & Field Operations Approved as to form: By: By: George H. Eiser, III Interim City Attorney Kurt Atherton, President Community Services 2016 First Amendment to Agreement Between City of National City and EXOS 42 of 104 EXHIBIT B BUDGET Fiscal Year 2018 Payroll and Staffing Expenses Salary -Managers $ 69,300 Wages -Guards for Recreational Swim, Swim classes and National School District Swim Classes $ 87,573 Wages -Administrative staff for Recreational Swim, Public Access and National School District Swim Classes $ 11,168 Wages -Instructors for Swim Classes and National School District Swim Classes $ 28,217 Wages-Courses/Certification/Clinics $ 1,200 Wages -Guards for Sweetwater Unified High School District programs $ 35,448 Wages -Guards for Southwestern College programs $ 17,724 Wages -Aquatic Group Exercise Classes $ 13,008 Payroll Burden-26% of payroll $ 64,703 Sub -Total Marketing and Administrative Costs $ 328,341 Advertising and Marketing $ 6,000 Dues & Membership $ 2,400 Meeting Expenses $ 2,450 Uniforms $ 1,000 Locker Room Supplies $ 6,000 Office Supplies $ 1,800 Travel and Mileage Reimbursement $ 980 Program Supplies & Expenses $ 4,400 Sub -Total Base Management Fee $ 25,030 Monthly Fee for Service $ 68,075 Sub -Total Tnta1 F,xnenses $ 68,075 $ 421,446 2016 First Amendment to Agreement Between City of National City and EXOS 43 of 104 CC/CDC-HA Agenda 12/13/2016 — Page 44 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 Palm Engineering Construction Company, Inc. in the not -to -exceed amount of $983,756.49 for the Division Street Traffic Calming Project, CIP No. 16-09; 2) authorizing a 44 of 104 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE. December 13, 2016 AGENDA ITEM NO. ITEM TITLE Resolution of the City Council of the City of National City, 1) awarding a contract to Palm Engineering Construction Company, Inc. in the not -to -exceed amount of $983,756.49 for the Division Street Traffic Calming Project, CIP No. 16-09; 2) authorizing a 15% contingency in the amount of $147,563.47 for any unforeseen changes; and 3) authorizing the Mayor to execute the contract. PREPARED BY: Jose Lopez, Junior Engineer - Civil PHONE: 619-336-4312 EXPLANATION: See attached. DEPARTMENT: Engineering/Public Works APPROVED BY: FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: Contract Award (funds available through prior City Council appropriations) 296-409-500-598-6571 (Division Street Traffic Calming): $750,000.00 001-409-500-598-6035 (Street Resurfacing): $233,756.49 MIS 15% Contingency (funds available through prior City Council appropriations) 001-409-500-598-6035 (Street Resurfacing): $147,563.47 ENVIRONMENTAL REVIEW: CEQA Notice of Exemption for the project was filed with San Diego County Recorder's Office in June 2016. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt Resolution awarding a contract to Palm Engineering Construction Company, Inc. in the not -to -exceed amount of $963,756.49 for the Division Street Traffic Calming Project, CIP No. 16-09. BOARD 1 COMMISSION RECOMMENDATION,° N/A ATTACHMENTS: 1. Explanation 2. Bid Opening Summary 3. Three Lowest Bidders Summary 4. Resolution 45 of 104 EXPLANATION The general scope of work for the Division Street Traffic Calming Project, CIP No. 16- 09, includes traffic calming, pedestrian, bicycle and Safe Routes to School enhancements on Division Street between Highland Avenue and Euclid Avenue. Improvements include high intensity signing and striping; pedestrian curb ramps for ADA compliance; new buffered bike lanes with signage; and traffic calming measures such as a "road diet" converting four travel lanes to three travel lanes (two westbound and one eastbound) with a two-way left -turn center lane, buffered bike lanes and on -street parking. On November 1, 2016, the bid solicitation was posted on PlanetBids, a free public electronic bidding system for contractors. On November 3, 2016 and November 10, 2016, the bid solicitation was advertised in local newspapers. On November 22, 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. Palm Engineering Construction Company, Inc. was the apparent lowest bidder with a total bid amount of $1,087,146.24 as the basis of award. Upon review of all documents submitted, Palm Engineering Construction Company, Inc.'s bid was deemed responsive, and they are the lowest responsible bidder qualified to perform the work as described in the project specifications. Therefore staff recommends awarding a contract to Palm Engineering Construction Company, Inc. in the not -to -exceed amount of $983,756.49, which includes the following: Base Bid amount of $926,993.49 o Includes the general improvements and roadway rehabilitation between Highland Avenue and Palm Avenue Alternate Bid `B' — RCS Type II Slurry amount of $56,763.00 a Includes high quality slurry seal product to be applied between Pa!m Avenue and Euclid Avenue By awarding Alternate Bid 'B', Base Bid Line Item No. 33 — Slurry Seal in the amount of $50,681.25 will be eliminated, as well as Alternate Bid `A' — RPMS Type II Slurry in the amount of $52,708.50. These adjustments are reflected in the recommended contract award amount of 983,756.49. Staff also recommends authorizing a 15% contingency in the amount of $147,563.47 to address any unforeseen conditions that may arise. Attached are the bid opening summary sheet and a line item summary of the three lowest bidders for reference. Construction is estimated to be completed by June 2017. 46 of 104 BID OPENING RESULTS NAME: DIVISION STREET TRAFFIC CALMING CIP NO: 16-09 DATE: Tuesday, November 22, 2016 TIME: 1:00 P.M. ESTIMATE: $900,000 PROJECT ENGINEER: Duna Muthusany, P.E. NO. BIDDER'S NAME Grand 'Total* ADDEND A BID SECURITY -BOND 1. Palm Engineering Construction Company, Inc. 7330 Opportunity Rd #J San Diego, CA 92111 $1,087,146.24 NIA Bond 2 Portillo Concrete, Inc. 3527 Citrus St. Lemon Grove, CA 91945 $1,154,874.55 N/A Bond 3 LB Civil Construction, Inc. 324 East Valley Parkway • Escondido, CA 92025 S1,388,936.20 NIA , Bond 4. Just Constriction, Inc. 3103 Market Street San Diego, CA 92102 $1,098,604,196.70** N/A Bond * If an additive, alternate or additivelalteenate bid items are called for in. the Contract Docents, the sum of the base bid and all additive, alternate and additive/alternate bids, if any, shall be used to determine the lowest responsive bid. **Grand total reflects contractor's proposal verbatim as submitted to Planet Bids. 47 of 104 Item No. Description Iasi Bid 11 Mobilization/Demobilization 2 Clearing and Grubbing 3 Water Pollution Control 4 Traffic and Pedestrian Control 5 Unclassified Excavation 6iel Results for Division Street Traffic Calming (CIP No. 16-09 PALM ENGINEERING CONSTRUCTION COMPANY, INC_ Extension Unit Qty. Unit Price (Quantity x Unit Price) Removal, Disposal and Replacement Of L__. 6 Unsuitable Subgrade .1 7 Curb Ramp Type A N 8 Curb Ramp Ty e B 9 Curb Ramp Type C 10 Curb Ramp Type D 11 Concrete Sidewalk - Remove and Replace 12 Grind Existing Concrete Pavement EA [.5 4:A 1 1 $30,000.00 $20,000.00 $10,000.00 EA !IS TON 500 'EA 1 'EA 1 >AA 10 $20,000.00 $20,000.00 $50.00 $3,000.00 $3,000.00 $3,000.00 $2,200.00 SF LF 13 Curb and Gutter Replacement at S Avenue . LF 14 Sidewalk Underdrain west of Laurel Avenue LS 15 Concrete Driveway - Remove and Replace 16 Reset Pullbox to Grade 17 Replace Pullbox 18Adjust to Grade Steel Valve Cover and Frame EA EA EA EA 1836 $15,00 1.09 $15.00 22 1 $60.00 $3,500.00 $2,800.00 $350.00 $600.00 47 $250.00 $30,000.00 $20,000.00 510,000.00 $20,000.00 20,000.0O $25,000.00 53,000.00 , S3,00000_1 y3Q,000.00 $4,400.00 S2 7 r540.00 51,6'5.00 51.320.00 $3, i00.00 $2,800.00 $3SO-0ct; $6 S 11, 7 50.4O POR1 iU_q CONCRF1E, INC, Extension Unit Price (Quantity x Unit Price) LB Civii Con5tructIan, Unit Price1 Extension (Quantity x Unit Price) $30,000.00 $30,000.00 I $100,000.00 $20,000.00 $20,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $20,000.00 { $20,000.00 $20,000.00 $20,000,00 $10,000,00 S100,000.00 55.000,00 $50.00 $4,000.00 T $4,000.00 $3,500.00 $3,000.00 $10.00 $10.00 $25 000.00 $120.00 $4,000,00 $5,500.00 $11,000.00 $5,500.00 $35,000.00 $6,000:00 $18,360.00 $1,090.00 $5,5C0OD S5.0110.00 S50,000.00 $10,000.00 $60,000.O0 $5.500.00 53,500.ea 555.000.00 $5,00000 510.000.00 $35.00 $2.500 $100.00 $2,200.00 $135.00 $1,000.00 $1 003.00 $2,300.00 $6,000.00 $500.00 $500.00 $6,000.00 $6,100.00 $930,00 $1.,100.00 $500.00 $E30.00 $200.00 $9,400.0[) $535.00 5E4,260,00 S2,725.00 s2.7O.00 $2,300.00 $6,1aaeo S1r100_.00 5630.0o $25,145,00 48 of 104 [ Item Adjust to Grade Steel Manhole Cover and 19 Frame 20 Pavement Dig Out Areas (Excavation) Description Bid Results for DMsion Street Traffic Calming (C0P No.16-09) an. 27 PALM ENGINEERING CONSTRUCTION COMPANY, INC,, Unit Price $300.00 21 Pavement Did Out Areas ( Install 12' base) Pavement Dig Out Areas (Install 5" asphalt 22 concrete) 23 ' 24 Pavement Reinforcement Fabric (Mirafi RS38C) Asphalt Concrete Pavement Reinforcement Fabric (Glass Pave 25 25) Cold Mill Existing Asphalt Concrete 26 (Maximum Depth = 1") 27 Modified Type E Loop Detector 28 Type E Loop Detector _29 Modified Type C! (4'x6') loop Detector 30.Gravity Wail 31 Bus Pad (60'x10'x9")PCC 32 33 34 35 36 Bus Pad (60'x10'x9") Concrete Treated Base Slurry Seal (Type 2) Cross Gutter Remove and Replace Signing and Striping Field Orders C" TON TO N SI= TON SF' SF EA EA EA LI= SF CY EA LS Aliow 1156 1487 6 $50.00 $40.00 $125.00 2:2037' $0.70 2511: $95.60 2E+05 $0.42 58974 $0,24 37: $406.25 2 $375,00 7: $375.00 20 $150.00 4800. $11.00 $80.00 $3,75 $3,200.00 $41,950.00 $5,000,00 Subtotal Extension (Quantity x Unit Price) l g,100. 41 n $57,800.00 S59.480.00 585,000.00 $15,42.5.'90 5240,051.60 0,84O3 $14,153.76 515,031.25 527,000.00 52,625.00 53,000.00 552,300_00 $10$40. o0 550,681 25 $3,200.00 1 541.950.001 $5.000.00 PORTWLLO CONCRETE, INC Unit Price $300.00 $40.00 $30.00 $150.00 $1.00 $110.00 $0.35 $0.35 $360.00 $330.00 $330.00 $100,00 $12.00 $15.00 $4.00 $1.0,000.00 $56,000.00 $5,000.00 $977,674,74 Extension (Quantity x Unit Price) $8,100:00 $46,240,00 I,R Civil. Construction, Ins. Extension Unit Price (Quantity x Unit Price) $44,610,00 $1G2,000.00 $22,037,00 $276,210,00 $59,034.15 $20,640.90 $13,320,00 $23,760.00 $2,310.00 2,0 0,0 f $57,600.00 $1,100.00 52',7CC.110 $70.00 : is3 ? `''i��•w' $1, 95.00 $54, 060.00 $10,0.00 $56,000.00 _11900.00 $1,I"12,967.05 l $40'.00 $125.00 Sam $75.00 $0.35 $0.30 $325.00 $325.00 $325.00_ $400.00 $25.00 $145.00 $3.50 $14,000.00 $59,480.00 58` ,000.O0 ';17,62`_°. 0 S 188,325.00 $ 51,034.15 $17,692.20 $12,025.C►"► $23.400.ur_] 52,275.00 $8,000.00 $12o, 000.00 S19,285.00 S4 7,302_0 51 .o io.od $42,000.00 ; 4 2.000.0o $5,000.00 i 55,000.00 $1,242,298.45 49 of 104 Bid Results for Division Street Traffic Calming (CIP No.16-09) Item No. 37 Description 9Jni QtY. PALM f NGINE£RING CONSTRUCTION COMPANv, INC POE TILLQ CONCRETE, INC. LB Civil Construction, Inc Extension Extension Extension Unit Price (Quantity x Unit Unit Price (Quantity x Unit Unit Price (Quantity x Price) Price) w Unit Price) Alternate 8td A Rubber Polymer Modified Slurry (RPMS), Type it Rid 8- 38 SY13515 $3.90 Subtotal Rubberized Emulsion Aggregate Slurry (REAS), Type 11 Base Bid Eliminate Line Item 33 - Siu Alternate Bid B 13515 $4.20 subtotal Grand Total Seal (Type 2) $52 708.50 L $4.00 $57,708.50 -� 763,O0 56, 763.O0 ,0E7,14 , 4 arnrnary of Award $577.,74.711. Grand Total Awarded $54,0.00 $54,060.00 $6.50 $87,847.50 I $8,7,847.50 1.j.^p4 $1,012,967.05 $3.60 _ .:4-8,6S4.00 $48, 854,00 $7.25 $97,983.75 7,,983.75 $9E13,756.49 7,847, 50 $1,046,754.55 4; 75 $1,292,979.70 50 of 104 CC/CDC-HA Agenda 12/13/2016 — Page 51 The following page(s) contain the backup material for Agenda Item: (A) An Ordinance of the City Council of the City of National City establishing the compensation of the Mayor and the City Council. (City Attorney); (B) An Ordinance of the City Council of the City of National City establishing the Retiree Health Care B 51 of 104 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 13, 2016 AGENDA ITEM NO. ITEM TITLE: (A) An Ordinance of the City Council of the City of National City establishing the Compensation of the Mayor and the City Council. (B) An Ordinance of the City Council of the City of National City establishing Retiree Health Care Benefits for the Mayor and City Council. PREPARED BY: George H. Eiser, III PHONE: EXPLANATION: DEPARTMENT: City Attorney Ext. 4222 APPROVED BY: Please see attached memorandum. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: MIS APPROVED: `Oivrd , - Finance (A) 001-401-000-1 ** (salaries & benefits) (B) 212-409-000-199 (Personnel Compensation) ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: X FINAL ADOPTION: STAFF RECOMMENDATION: Introduce ordinances. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: Memorandum Proposed ordinance establishing salaries Proposed ordinance establishing retiree health care benefits 52 of 104 Mayor Ron Morrison Council Members Jerry Cano Alejandra Sotelo-Solis Mona Rios Albert Mendivil TO: FROM: SUBJECT: \ \ 1 I / - CALIFORNIA NKIIONAL CITY oR I11rCORPO&9T>;D Office of the City Attorney Mayor and City Council City Attorney Adjustments in Compensation for Mayor and City Council Interim City Attomey George H. Eiser, III Senior Assistant City Attorney Nicole Pedone Deputy City Attorney Roberto M. Contreras DATE: December 13, 2016 City Council Salary The last salary adjustment for the City Council occurred on December 16, 2014, with the enactment of Ordinance No. 2014-2400, a copy of which is attached. That ordinance set the base salary of the City Council at $1,081.62 per month. Government Code Section 36516.5 provides that a change in compensation does not apply to a councilmember during his or her term in office. However, compensation for all members of the City Council may be adjusted whenever one or more members become eligible for an increase by virtue of beginning a new term of office. As a result, adjustments to compensation of Council members have been geared to elections at which members begin a new term in office. Pursuant to Government Code Section 36516(a)(4), the Council may, by ordinance, increase its compensation by 5% per calendar year from the date of the last increase in compensation, so in the present case, up to 10%. A 10% increase in the salary of the City Council would amount to $108.16, for a total of $1,189.78 per month. Mayor's Salary Pursuant to Government Code Section 36516.1, an elected mayor may be provided with compensation in addition to that which he or she receives as a councilmember, pursuant to an ordinance or by a vote of the electors at a municipal election. There are no statutory limitations imposed on the amount of the mayor's compensation. The last salary adjustment for the Mayor occurred on December 16, 2014, pursuant to Ordinance No. 2014-2400, which set the base salary of the Mayor at $4,120.12. Historically, the Mayor's salary has been increased by the same percentage as the salary of the City Council. If the Mayor's compensation were increased by 10%, the Mayor's monthly salary would be $4,532.13. Mayor and City Council Retiree Health Benefit Although authorized by State law (Government Code Sections 53201 and 53205), retiree health benefits are not currently part of the compensation for the Mayor and City Council. The issue of retiree health benefits was considered by the City Council at the June 16, 2016 City Council meeting, but no action was taken or direction given. The issue is being presented at this time 1243 National City Boulevard; National City, California 91950-4397 Tel.: (619) 336-4220 Fax: (619) 336-4327 53 of 104 Adjustments in Compensation December 13, 2016 Page 3 City Treasurer and City Clerk Health Benefit When the issue of a health benefit for the Mayor and City Council was considered at the June 16 Council meeting, consideration of a health benefit for the elected City Treasurer and City Clerk was also considered, but not acted upon. It is within the authority of the City Council to approve a health benefit for these elected officials subject to the same requirements that are applicable to the City Council. (Government Code Section 53201.) Elected Official Compensation Survey Attached is a table prepared in August 2016 showing the compensation of mayors and councilmembers in San Diego County, Proposed Ordinances A proposed ordinance is attached increasing the salaries of the Mayor and City Council by 10%. A separate proposed ordinance grants retirement health benefits to the Mayor and City Council at the same level as the retiree health benefit for the Management/Executive Group, with the exception of a more restrictive vesting requirement. The proposed ordinances are being submitted for introduction at the December 13 meeting. If the Council wishes to modify the provisions of either of the proposed ordinances, it is recommended that such modifications should be acted upon at the time that ordinance is introduced. If modifications are made at the meeting at which either ordinance is considered for final adoption, it will be necessary for that ordinance to be re -introduced, with final adoption to occur at a later meeting. Delaying final adoption of either ordinance in this manner would raise issues regarding the timeliness of the action under applicable state law. GHE/gm Attachment GEORGE H. EISER, III Interim City Attorney 54 of 104 ORDINANCE NO. 2414 — 2400 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ESTABLISHING THE COMPENSATION OF THE MAYOR AND THE CITY COUNCIL BE IT ORDAINED by the City Council of the City of National City as follows: Section 1. That the base monthly compensation for the City Council is established at $1,081.62 per month; pursuant to the provisions of Sections 36516 and 36516.5 of the California Government Code, Section 2. That the base monthly compensation of the Mayor is established at $4,120.12 per month, pursuant to the provisions of Section 36516.1 of the Government Code. Section 3. That for mayors and city councilmembers first elected or appointed on or after January 1, 2013, their retirement benefit formula shall be established pursuant to the California Public Employees' Pension Reform Act of 2013. Section 4. That the benefits for the Mayor and City Council shall remain as previously established. PASSED and ADOPTED this 16th day of December, 2014. ATTEST: Mic ael R. Della, C' Clerk S TO FO P dia Gacitua City Attarne i on Morrison, Mayor 55 of 104 Passed and adopted by the Council of the City of National City, California, on December 16, 2014 by the following vote, to -wit: Ayes: Councilmembers Cano, Mendivil, Morrison, Rios. Nays: Councilmember Sotelo-Solis. Abserll: None. Abstain: None. AUTHENTICATED BY: By: RON MORRISON Mayor of the City of National City, California JAI CI of the e City of ational City, California Deputy 1 HEREBY CERTIFY that the foregoing ordinance was not finally adopted until seven calendar days had elapsed between the day of its introduction and the day of its final passage, to wit, on December 2, 2014 and on December 16, 2014, 1 FURTHER CERTIFY THAT said ordinance was read in full prior to its final passage or that the reading of said ordinance in full was dispensed with by a vote of not less than a majority of the members elected to the Council and that there was available for the consideration of each member of the Council and the public prior to the day of its passage a written or printed copy of said ordinance. I FURTHER CERTIFY that the above and foregoing is a full, true and correct copy of ORDINANCE NO. 2014-2400 of the City Council of the City of National City, passed and adopted by the Council of said City on December 16, 2014. By: City Clerk of the City of National City, California Deputy 56 of 104 VAMIFORRIA �- NATIONAL CITY Agency Charter City Carlsbad X Chula Vista X Coronado Del Mar X El Cajon X Encinitas Escondido imperial Beach La Mesa Lemon Grove Oceanside X Poway San Diego X San Marcos X Santee X Solana Beach Vista X National City Color Denotes Full Service Cities Monthly Compensation MAYOR Comm Dev / Hsg Board Other Related Comp Elected Official Compensation Survey: Mayor and Council COUNCIL Expense Car Monthly Comp for RDA or Allowance Allowance Compensation Special Mtgs Other Related Comp Expense Car Allowance Allowance $2,152 $75/mtg for CDC $100/mtg for Water Board Not provided $4501mo $2,052 $75/mtg for CDC $100/mtg for Water Board Not provided $350/mo Health Care $1,428/mo Notes $10,397 $50/mtg Housing Not provided Not provided $6501mo $4,159 $50/mtg Housing Not provided Not provided $358/mo $1,3721mo $435 $30/rntg for CDSA Not provided $1751mo Not provided $435 $30/mtg for CDSA Not provided $75/mo Not provided 81 4 73/mo Effective January 2017, health care will increase from $1,473 to $1,612 (9 46% increase). $350 Not provided Not provided Not provided Not provided $300 Not provided Not provided Not provided Not provided Not provided $2,240 $30/mtg Not provided Not provided $550/mo $1,553 $30/mtg Not provided Not provided $450/mo $1,000/mo $1,166 $100/mo (pd by the Wir Board); $50/mtg Hsg $1601mtg Actual Exp & $350/mo $350/mo $1,186 $100/mo (pd by the Wir Board); $50/rrrtg Iisg $1601mtg Actual Exp & $350/mo $350/mo $1,0911mo $4 B72 Not provided Not provided Not provided $750/mo $1,/26 Not provided Not provided Not provided $750/mo up to $1.309/mo Trere is supposed to be a 10% salary increase in December 2016, following the November election. $1.100 $30/nllg Not provided Expenses Reimb Not provided $300 $30./mtg Not provided Expenses Reimb Not provided up to $1,350/mo $2,000 Not provided Not provided $1.000/yr expense allow $400/mo $1,000 Not provided Not provided $1000/yr expense allow $350/mo $1,314/mo Effective 2017, Council expense allowance will increase from $1.000 to $1.354 $1,234 Not provided Not provided Not provided $175/mo $705 Not provided Not provided Not provided $175/mo $750/mo They are considering an increase after election. $2 344 $3501mo CDD mtg & $200/mo Harbor mtg Not provided $400/mo $2,195 $350/mo CPO mtg & $200/mo Harbor mtg Not provided $350/mo up to $1,429/mo tied to unrep Eees Effective December 2016, Mayor & Council compensation will increase to $2,658 & $2,483, respectively $1.467 Not provided $75/mo phone allowance Not provided $300/mo mileage $1,167 5100 or $150 per meeting $50/mo phone allowance Not provided $300/mo mileage up to $1843.24/mo Plan to re -visit salaries in January 2017 $6,372 Not provided Not provided Not provided $800/mo $6,282 Not provided Not provided Not provided $8001mo up to $1,343.42 $978 Not provided Not provided Not provided $300/mo $978 Not provided Not provided Not provided $300/mo See Notes $1,175/mo for the Mayor plus $1,300/yr flexible spending account; up to $1,856 for the Council plus $1,3001yr flexible spending account $2,707 Not provided Not provided Not provided $300/mo $1,606 Not provided Not provided Not provided $300/mo $1,5381mo $713 Nol provided $160/mtg for SEJPA Not provided $3501mo $713 Not provided $160/mtg for SEJPA Not provided $350/mo $1,120/mo $2, 722 $147.751mtg Buena Sanitation District $901mo cell phone allowance Not provided Included in salary $2,622 $147.75/mtg Buena Sanitation District $90/mo cell phone allowance Not provided Included in salary up to $1,933/mo $4.120 Not provided Not provided $3501mo $7501mo $1,082 Not provided Not provided $3501mo Not provided $12001mo 57 of 104 Revised August 2016 ORDINANCE NO. 2016— AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ESTABLISHING THE COMPENSATION OF THE MAYOR AND THE CITY COUNCIL BE IT ORDAINED by the City Council of the City of National City as follows: Section 1. That the base monthly compensation for the City Council is established at $1,189.78 per month, pursuant to the provisions of Sections 36516 and 36516.5 of the California Government Code. Section 2. That the base monthly compensation of the Mayor is established at $4,532.13 per month, pursuant to the provisions of Section 36516.1 of the Government Code. PASSED and ADOPTED this 13th day of December, 2016. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III Interim City Attorney Ron Morrison, Mayor 58 of 104 ORDINANCE NO. 2016 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ESTABLISHING THE RETIREE HEALTH CARE BENEFITS FOR THE MAYOR AND CITY COUNCIL BE IT ORDAINED by the City Council of the City of National City as follows: Section 1. That the Mayor and City Council shall receive the retiree health benefits at the same level as the Executive/Management Group, as follows: (a) $20 per month, multiplied by the number of years of service (b) 20 years of service required for vesting (c) Retirement from City and CaIPERS (simultaneously at the time of separation from the City) (d) Benefit continues for lifetime of individual Section 2. That all other benefits for the Mayor and City Council shall remain the same. PASSED and ADOPTED this 13th day of December, 2016. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III Interim City Attorney Ron Morrison, Mayor 59 of 104 CC/CDC-HA Agenda 12/13/2016 — Page 60 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing the following actions to facilitate completion of priority Capital Improvement Program (CIP) projects: 1) release of General Fund (GF) appropriations in the amount of $990,460.24 from 60 of 104 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: (December 13, 2016 AGENDA ITEM NO. ITEM TITLE: (Resolution of the City Council ot the City ot National City authorizing the following actions to facilitate completion of priority Capital Improvement Program (CIP) projects: 1) release of General Fund (GF) appropriations in the amount of $990,460.24 from Civic Center Chiller, Kimball Tower Rehab, George H. Waters Nutrition Center Improvements (Phases 1 & !I), Kimba!! Recreation Center Roof Replacement, MLK Jr Community Center Improvements, and Casa de Salud Manuel Pnrtiiio Youth Center improvements projects; 2) appropriate $990,460.24 to corresponding GF expenditure accounts for Police Department Building Improvements (Phase I), ARTS Center Roof Replacement, Drainage Improvements, and Street Resurfacing projects; 3) release of Information Systems Maintenance (ISM) appropriations in the amount of $70,171.70 from Security Card Access System and Civic Center Data Center AC projects; and 4) appropriate $70,171.70 to corresponding ISM expenditure account for Public Safety Cameras project for the National City Aquatic Center.] PREPARED BY Stephen Manganiello PHONE: (619) 336-4382 EXPLANATlC See attached. DEPARTMENTEngineering/Public Works APPROVED BY: —7 FINANCIAL STATEMENT: ACCOUNT NO. See attached. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: F!MAL ADOPTION: APPROVED: ( t ( Finance APPROVED: MIS STAFF RECOMMENDATION: Adopt Resolution authorizing release of funds from various Capital Improvement Program (CIP) projects in order to increase appropriations for other CIP projects, which are either in construction or ready for construction bidding. BOARD / COMMISSION RECOMMENDATION: N/P ATTACHMENTS: 1. Explanation 2. Financial Statement 3. Resolution 61 of 104 Explanation An integral part of delivering a successful Capital Improvement Program (CIP) for the residents of National City is prioritizing projects and leveraging funding opportunities. As the City approaches the mid -year, staff has identified a need for additional funds for several projects which are either in construction or ready for construction bidding. In order to offset the impact to the General Fund, staff has identified other CIP projects that have been completed under budget, incorporated into larger financing programs, and/or delayed in order to complete comprehensive needs assessments. Therefore, staff recommends that City Council authorize the following actions to facilitate completion of priority CIP projects: 1) 1) release of General Fund (GF) appropriations in the amount of $990,460.24 from Civic Center Chiller, Kimball Tower Rehab, George H. Waters Nutrition Center Improvements (Phases I & II), Kimball Recreation Center Roof Replacement, MLK Jr Community Center Improvements, and Casa de Salud Manuel Portiflo Youth Center Improvements projects; 2) appropriate $990,460.24 to corresponding GF expenditure accounts for Police Department Building Improvements (Phase 1), ARTS Center Roof Replacement, Drainage Improvements, and Street Resurfacing projects; 3) release of Information Systems Maintenance (ISM) appropriations in the amount of $70,171.70 from Security Card Access System and Civic Center Data Center AC projects; and 4) appropriate $70,171.70 to corresponding ISM expenditure account for Public Safety Cameras project for the National City Aquatic Center. The attached Financial Statement provides an accounting summary, including justifications for the release and appropriation of funds. 62 of 104 Financial Statement Project; Description Account # Civic Center Chiller Project Kimball Tower Rehab Provide energy efficiency upgrades, including replacement of the HVAC Replace boiler system; other improvements TBD George H. Waters Nutrition Center Replace walk-in refrigerator, replace roof -mounted HVAC Improvements - Phase 1 unit, and instalI dishwasher 'roof utility fan George H. Waters Nutrition Center Improvements - Phase II Kimball Recreation Center Roof Replacement Replace grease interceptor; other improvements TBD General Fund (001) 001-409-500-598-1591 $ (148,599.60) 001-409-500-598-1593 $ (150,296.30) 001-409-500-598-1599 $ (334,262.76) Information Systems Maintenance (629) Total Notes 001-409-500-598-1598 1 $ (90,000.00 Replace Kimball Rec Center roof 001-409-500-598-1602 (50,000.00) $ (148,599.60) $ (150,296.30) $ (334,262,76) Improvements will be financed and completed through Energy Savings Contract (ESCO) Bailer system has been replaced; other Improvements will be identified and financed as part of Kimball -Morgan Tower rehabilitation project Improvements have been completed (90,000.00) (50,000.00) Replacement of grease interceptor and other improvements will be identified and financed as part of Kimball -Morgan Tower rehabilitation protect Project is on -hold until needs assessment is completed to determine ultimate use of the facility; staff will continue to maintain commercial grade roof tarps (installed last year) and provide minor maintenance as needed MLK Jr Community Center Improvements Casa de Salud Manuel Portillo Youth Center Improvements Replace two, 7.5 ton rooftop 'heat pump units with economizers at the MLK Jr Community Center; provide energy efficiency upgrades; other improvements TBD 001-409-500-598-1607 1 $ (187,440.60 $ (187,440.60) Rooftop heat pump units have been replaced; energy efficiency upgrades will be financed and completed through Energy Savings Contract (E5C0); other improvements will be Identified and financed as part of facilities needs assessment Refurbish Casa de Salud, Including interior and exterior painting, new indoor soccer court, building slgnage and pubic art; provide energy efficiency upgrades; other improvements TBD 001-409-500-598-4070 (29,860,98) (29,860.98) Refurbishment of Casa de Salud has been completed; energy efficiency upgrades will be financed and completed through Energy Savings Contract (BCD); other improvements will be identified and financed as part of facilities needs assessment 63 of 104 Project Description Account# General Fund (001) Information Systems Maintenance (629) Total Notes Security Card Access System Provide upgrades to the security card access system 629-409-500-598-8032 $ (35,635.12) $ (35,635.12) Upgrades have been completed Civic Center Data Center AC -- Provide upgrades to the Civic Center Data Center AC 629-409-500-598-8037 __ $ (34,536.58) $ (34,536.58) upgrades have been completed Subtotal $ (990,460.24) $ (70,171.70) $ (1,060,631.94) Police Department Building Improvements - Phase I Provide electrical and mechanical upgrades to support expansion of the Police Department Property and Evidence Room, ADA upgrades, fire suppression system upgrades, waterproofing, landscaping and irrigation 001-409-500-598-1181 $ 50,000.00 $ 50,000.00 Additional appropriations are needed for preparation of as -built drawings and project close-out for Phase I improvements ARTS Center Roof Replacement Replace ARTS Center roof 001-409-500.-598-1600 $ 100,000.00 $ 100,000.00 Additional appropriations needed for construction based on latest plans and Engineers' estimate Drainage Improvements Provide drainage improvements Citywide 001-409-500 598-7062 $ 100,000.00 $ 100,000.00 .Additional appropriations needed for construction of various drainage improvement projects Street Resurfacing ,substandard Provide roadway rehabilitation - digouts, grinding, overlay and slurry seas; re -striping of finished pavement and new signage; removal and replacement of damaged or ' lifted sidewalks and pedestrian curb ramps for ADA compliance 001-409-500-598-6035 $ 740,460.24 $ 740,460.24 Additional appropriations needed for construction of various street resurfacing projects, such as Division Street, 16th Street, 18th Street and Plaza Blvd Public Safety Cameras Install public safety cameras and associated infrastructure for the National City Aqua -tic Center 629-409-500-598-8040 $ 70,171.70 $ 70,171.70 Additional appropriations needed to install public safety cameras and associated infrastructure for the National City Aquatic Center S Subtotal $ 990,460.24 $ 70,171.70 $ 1,060,631.94 64 of 104 CC/CDC-HA Agenda 12/13/2016 — Page 65 The following page(s) contain the backup material for Agenda Item: Selection of Vice - Mayor 65 of 104 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 13, 2016 AGENDA ITEM NO. ITEM TITLE: NEW BUSINESS: Selection of Vice -Mayor PREPARED BY: George H. Eiser, III Interim City Attorney Ext. 4222 PHONE: DEPARTMENT: City Attorney APPROVED BY• J EXPLANATION: Appearing on the City Council agenda for the meeting of December 6, 2016, is a resolution declaring the results of the General Municipal Election held on November 8, 2016. In a general law city such as National City, the California Government Code, at Sections 36801 and 34905, provide that at the meeting at which the declaration of results for a general municipal election is made, the city council shall, following the declaration of the election results and installation of elected officials, choose one of its members as mayor pro tempore (referred to in National City as the vice -mayor). Government Code Section 36802 provides that the mayor shall preside at the meetings of the council; that if the Mayor is absent or unable to act, the mayor pro tempore shall serve until the mayor returns or is able to act; and that the mayor pro tempore has all of the powers and duties of the mayor. In addition to these Government Code sections, Policy No. 602 of the City Council Policy Manual sets forth certain duties of the vice -mayor pertaining to the City Council clerical staff. A copy of Policy No. 602 is attached. The selection of the vice -mayor may be accomplished by approval of a motion. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: IN/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Approval of motion.1 BOARD / COMMISSION RECOMMENDATION: NJA� ATTACHMENTS: City Council Policy No. 602 66 of 104 CITY COUNCIL POLICY TITLE: CITY COUNCIL CLERICAL STAFF AND EXECUTIVE ASSISTANT TO THE MAYOR POLICY NUMBER: 602 ADOPTED: August 20, 1985 AMENDED OR January 21, 1986 REVISED: December 16, 2008 Purpose To establish guidelines for the evaluation or replacement of the City Council Clerical Staff and Executive Assistant to the Mayor. Policy It shall be the responsibility of the Vice Mayor to confer with the Mayor to coordinate the performance evaluation or replacement of the City Council Clerical Staff and Executive Assistant to the Mayor. The Vice Mayor shall confer with the Mayor to make recommendations on performance, pay increases, and the need for temporary assistance in case of absences. The Vice Mayor will also be responsible to confer with the Mayor for the annual review and evaluation of the performance of the City Council Clerical Staff and Executive Assistant to the Mayor. Related Policy Procedures None. 67 of 104 CC/CDC-HA Agenda 12/13/2016 — Page 68 The following page(s) contain the backup material for Agenda Item: Temporary Use Permit — South Bay Community Church requesting to have a shipping container for storage at 2400 Euclid Avenue from December 14, 2016 thru December 14, 2017 with no waiver of fees. (Neighborhood Services) 68 of 104 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 13, 2016 AGENDA ITEM NO. ITEM TITLE: Temporary Use Permit — South Bay Community Church requesting to have a shipping container for storage at 2400 Euclid Avenue from December 14, 2016 thru December 14, 2017 with no waiver of fees. PREPARED BY: IDionisia Trejo j DEPARTMENT: PHONE: f(619) 336-4255 I APPROVED EXPLANATION: This is a request from South Bay Community Church to have a shipping container for storage at 2400 Euclid Avenue from December 14, 2016 thru December 14, 2017. d Services Department This storage container will be used for the weekly homeless outreach, seasonal decorations and additional outreach supplies. The container will also secure and hold current construction materials during building improvements and renovations. Note: This is the first year this organization has requested a Temporary Use Permit to have a shipping container for storage on this property. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. I APPROVED: The City has incurred $237.00 for processing the TUP. Total Fees: $237.00 ENVIRONMENTAL REVIEW: NMI ORDINANCE: INTRODUCTION: L FINAL ADOPTION: STAFF RECOMMENDATION: Approve the Application for a Temporary Use Permit with no waiver of fees subject to compliance with all conditions of approval. BOARD 1 COMMISSION RECOMMENDATION: INf ATTACHMENTS: Application for a Temporary Use Permit with recommended approvals and conditions of approval. 69 of 104 ❑ FaJr/Festival TUP 1 L City of National City • Neighborhood Services Department 1243 National City Boulevard • National City, CA 91950 (619) 336.4364 w fax (619) 336-4217 www.natianalcityca.gov ; Special Event_ Application ❑ ParadetMarch ❑ Walk or Run ❑ Concert/Performance Q Sporting Event 0 Other (specify) Event Name & Location Event Title Container Storage Event Location (fist all sites being requested) Set -Up Starts Date "I Time Day of Week Event Starts Date rf-1-.Kht io Time Day of Week Event Ends Date /2 • I.—!7 Time Day of Week Breakdown Ends Container will be stored at 2400 Euclid Ave., NC, Ca 91950 Date nh Time Dayo1 Week Applicant information Applicant (Your name Eddie Duenas South Bay communityc t, Sponsoring Organization . Event Coordinator of different from applicant) nfa Mailing Address 2400 Euclid Ave. NC, Ca 91950 Day Phone 619-267- UQ After Hours Phone 619-787-26fi1 Cell 619-787-2601 Fax Public Information Phone +rife E-mail eddie@wuthbaycc.org Applicant agrees to investigate, defend, Indemnify and hold harmless the City, Its officers, employees and agents horn and against any and ait loss, damage, liability, claims, demands, detriments, costs, charges, eiense (including attorney's fees) and causes of action of any character rich .the City, its officers, employees. and agents may incur, sustain or be subjected to on account of loss or damage to property or the loss of use thereof and for bodily injury to or death of any persona (including but nol limited to the employees,. -subcontractors, agents and invitees of each party hereto) arising out of or in any way connected to the occupancy, enjoyment and use of any City premises under this agreement to the extent permitted by law. The undersigned also uncle a and accepts the City's refund policy for application processing and feditty use and that fees and charges are usted annually end are subject to change. Signature of Applicant 1 Date 70 of 104 Security ar-id Crowd Control Depenchng on the number of participants, your event may require Police s erviPes. your frocadt s for both t and internal Security: rt%8 Have Stu hired F4 ubbional SecurIty to. handle security arrangements for °th sevent? Yes0 No [jl If YES, name and address of Secunly Organization Security Director (Name): Phone: ii rif he "ta 3t ie r" e aCOrp-IfpirtiMeaSe pmvide a coy of its Insurance osOcate, evidenCing llabillt ►wIrk limb Diet Least $1 Mon chars per oocurani ate, aawe0 as and additional Insured endorsement rig the City pf Normal City, s officssa, eMptoyees, and agents as additional insureds. Evidertee of insurance must be provided by the Caen or as "ensurer tette CIO Risk Mangler for review and 9121x0Yal Prior At the Is this a .rat event? Yes. ❑ Nog 1f YES please stele hoer the event and surrounding area wn'l be ilium 63 ensure safety of the participants aids ;. First Aid Depending .nn the number ofparticipants, yam' evant may require specific First Aid services. First aid station to be wed by evert Yes LJ No First aid/CPR certified? Yes l No II First aid station to be staled by peal company: lit.ompany " ia Access lit_. Please desk .your A#ae Jt lily Plan for access at your event by intibriduals.wi with l it ies: l 71 of 104 Using electrical power? Yes ❑ No0 0 using on -site electricity Q For sound ardor light010 0 For foad andfor refrigeration El Bringing in gems) ❑For sound andlc r i 5ng 0 For food andIor rehegieration Vendor Inform do;1 PLEASE NM: You may bit Yegoired to apply for a temporary Wealth parr It if food or leverages are told' of given away during your steal event nt. Also see 1Pertalbs and Compliances on page i8 intha SPftisi Event Ofids. For additional Inforreation on obtaining a Crary health porn*, pie tile COWIN of .o1 flealtb 91 3364,163. liavling food and non-alcoholic beverages at your event? Yes 0 No® ❑ Mors preparing food on -site ► # . * Business License # If yes, pled describe how food will be served and/or prepared: ❑ Vendors bringirva pied food ► # ► Business License # • Vendors bringer bottled, non-alcoholic be .(i.e., wed water, can soda, etc.) t► # Vendors selling food # ► Efts License #(s) ❑ Vendors selling merchandise # Business License #(s) ❑ Foodlbeverages to be handled by argenizat on; no outside vendors ❑ Vendors selling services :# ► Business License #(s) Explgin servers ❑ Vendors pasting out information only (no buses license needed)* y► Est type(s) of information - ❑ No soling or inforrnalional vendors at event Having ottildren acihrlties? Yee © flof KaitrifinE a are p y `s it facukee > etcal Wilily wllh iblts eat least $I Milli darts per o+ ence Milton .; gdoltars aggregate, fn addltfortrthe City of NatiOnal City man be named as an Addition lured pursuant ton separate Hai, which sh&I be bravided by the vendor or its irtiverta the. Citye Risk Aft•.along with .0 ilfc a of Insurance, 1hr/reproved prioptelfte event. The application oult9 .be flled ad at Witone week prior to the event, There Is 025 fee to:process to perrnh melon: For qFor Oueslions'orto Wainacopyof theRicethi! , please contact the i erg .- � _..., O inflatable bouncer house # 0. Reck sdim)ing will Height ❑ inflatable- bouncer side _ Cl Arts & crafts (i.e., craft making, face painting,. etc.) ❑ Other _. 72 of 104 Set -tip. Breakdown, C!ean-<<p Setting up the day before the eft? nia ❑ Yes, vatsetup the day before the event. ► # of trip days) u No, sat -up will occur on the eat day Requeastingvehicleaccess onto the turf? ❑ Yes, requesting access orb turf for set-up and breakdown (complete attached Vehicle Access ReqUest form) ❑ No, vehicles will load/unload from nearby street or perking lot 1J DES -Litter Fence • • COy to. Ali litter fence ❑ Appiaant to install litter fence NIA. &eaidng down set-up the day after the event? Q Yes, breakdown will be the dttsr after the event ► # of Breakdown days) i le ❑ No, breekd im Will occur on the event day. How are you handling clean-up? ❑ Using City crews ]j Using volunteer clean-up crew during and after event ❑ Ustg pr+ofessionai clearing companydurthg and after event Please IPat anything important about your evvent not already risked on this application: Please makea copy of this application for your recces, We do not provide copies. 7 73 of 104 City of National City P BLIC PROPERTY •USE HOLD HARMLESS AND I DENINIF CATION AGREEMENT Persons requesting use of City property, facilities or personnel ars required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees narned as additional Insured and to sign the Hold Harmless Agreement Certificate of insurance must be attached to this permit. The insurance company issuing the insurance poky must have a A.M. Sest's Guide Rating of A:Vil and that the insurance company is a California admitted company; ff not, then the insurance policy to the issuance of the pemiit for the event. The Certificate Holder must reflect City of National City Risk Management Department 1243 National City Boulevard National City, .CA 91950 organization: South Bay Commuriity Church person in charge•of Aofiv* Eddie Duenas• Address: 2400 Euclid Ave., NC, Ca 91950 Telephone: Date(s). of Use: IIOLD HARMLESS AGREEMENT As a condition of- the issuance of a temporary use permit to conduct its acthiities on public or private properly, the undersigned hereby ease(s) to defend, indemnify and hold harmless the City of flafional City and the Parking Authority and its officers, empkyees and agents from and against any and all claims, demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any htigation and other fietrility, including attorneys fees and the costs of litigation, arising out of or related to the use of public property or the activity taken under the permit by the perrnittee or its agents, ramp or contractors. Signature of Applicant: Official Tine: 5$ esel-t' Date: 11-21-16 Certificate of Insurance Approved Date 9 CITY ATTORNEY No comments POLICE DEPARTMENT No comments FIRE No comments RISK MANAGER.(619) 336-4370 I have reviewed the above captioned request for the issuance of a Temporary Use Permit. In order to satisfy the City's insurance requirements it will be necessary that the applicant provide the following: • Provide a valid copy of the Certificate of Liability Insurance wherein the City of National City, its officials, agents, employees and volunteers are named as an additional insured by way of a separate endorsement. The insurance policy must have a combined single limit of no Tess 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 has an A.M. Best's Guide Rating of A: VII and that the insurance company is a California admitted company. The Certificate Holder reflects: City of National City c/o Risk Manager 1243 National City Boulevard National City, CA. 91950-4397 • Name, address and contact information for the broker providing this insurance policy was provided. 76 of 104 CC/CDC-HA Agenda 12/13/2016 — Page 77 The following page(s) contain the backup material for Agenda Item: Temporary Use Permit — "Frank King's Christmas with Kids" hosted by Christmas with Kids at 223 E. 3rd Street on December 25, 2016 from 7 a.m. to 11 a.m. The applicant has requested a waiver of fees. (Neighborhood Services) 77 of 104 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 13, 2016 ITEM TITLE: Temporary Use Permit — "Frank King's Christmas with Kids" hosted by Christmas with Kids at 223 E. 3rd Street on December 25, 2016 from 7 a.m. to 11 a.m. The applicant has requested a waiver of fees. AGENDA ITEM NO. 1 PREPARED BY: 1Dionisia Trejo DEPARTMENT: Neighborhood PHONE: 1(619) 336-4255 APPROVED BY: EXPLANATION: rfhis is a request from the Christmas with Kids organization to conduct the "Frank King' Christmas with Kids" event at 223 E. 3rd Street on December 25, 2016 from 7 a.m. to 11 a.m. This event has been taking place at the King's Residence for 42 years here in National City. Since the passing of Mr. King, other community groups have taken up this charity that provides bicycles to underprivileged children. ices Department This event starts early Christmas morning and television networks will be there broadcasting throughout the morning for this event. Street closures are being requested on E 3rd Street between "B' Avenue and 'D' Avenue starting at 5 a.m. to 1 p.m. Note: In 2014 and 2015, City Council did approve the waiver of fees associated with this T.U.P event. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: ;The City has incurred $237,00 for processing the TUP through various City departments. Total fees: $237.00 ENVIRONMENTAL REVIEW: NIA ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval with no waiver of fees. BOARD 1 COMMISSION RECOMMENDATION: 1N1 ATTACHMENTS: ;Application for a Temporary Use Permit with recommended approvals and conditions of approval. 78 of 104 Type of Event ❑ Fair/Festival ❑ TUP City of National City ■ Neighborhood Services Department 1243 National City Boulevard ■ National City, CA 91950 (619) 3364364 ■ fax (619) 336-4217 www.nationalcityca.gov Special Event Application ❑ Parade arch ❑ Walk or Run 0 Concert/Per!ormance El Sporting Event Other (specify) Christmas Bike/Toy Giveaway Event Name & Location Event Title Frank King's Christmas with Kids Event Location (list all sites being requested) 223 E 3rd St National City, CA 91950 Event Tinies Set -Up Starts Date 12/25/2016 Time 0500 Day of Week Sunday Event Starts Date 12/25/2016 Time 0700 Day of week Sunday Date 12/25/2016 Time 1100 Day of Week Sunday Date 12/25/2016 Time 1200 Day of Week Sunday Event Ends Breakdown Ends Appl;icari# information-• Applicant (Your name) Michael Strand Sponsoring Organization Christmas with Kids Event Coordinator (if different from applicant) Brian Trum Mailing Address 4602 Saute Ave San Diego Ca 9.2117 Day Phone 61924'69474 After Hours Phone 819240 74 Cell 6192469474 Fax Public Information Phone 6192469474 E-mail snowman1946@aol.com Applicant agrees to Investigate, defend. indemnify and hold harmless the City, its officers, employees and agents from and against any and all loss, damage, liability, claims, demands, detriments, costs, charges, expense (including attomey's fees) and causes of action of any character which the City, its officers, employees and agents may incur, sustain or be subjected to on account of loss or damage to property or the loss of use thereof and for bodily injury to or death of any persons (including but not limited to the employees, subcontractors, agents and invitees of each party hereto) arising out of or in any way connected to the occupancy, enjoyment and use of any City premises under this agreement to the extent permitted by law. Applicant understands this TUPispecial event may implicate fees for City services, which will have to be paid in the City's Finance Department 48 hours prior to the event set-up. The undersigned also understands and accepts the City's refund policy for application processing and facility use and that fees and charges are adjusted annually and are subject to change. Michael Strand Diglially signed by Micnaei Strand 2016.11.23 Signature of Applicant: Date: 2016.11.23 10:00:18-D800'. Date 1 79 of 104 Fees/Proceeds/Reporting Is your organization a "Tax Exempt, nonprofit" organization? Yes El No ❑ Are admission, entry, vendor or participant fees required? Yes ❑ No IN If YES, please explain the purpose and provide amount (s): $ 0.00 event. $ 0.00 Estimated Expenses for this event. 0.00 $ What is the projected amount of revenue that the Nonprofit Organization will receive as a result of this event? Estimated Gross Receipts including ticket, product and sponsorship sales from this Description of Event ❑ First time event fl Returning Event D include site map with application Note that this description may be published in our City Public Special Events Calendar: Frank King's Christmas with kids is an annual National City Christmas morning toy and bike give away started by Frank King in his own yard. Under privileged children of National City can receive toys and some even a bike on Christmas morning_ This event continues past Franks death through the efforts o the Christmas with Kids charity. Estimated Attendance Anticipated # of Participants: 240 Anticipated # of Spectators: 2 80 of 104 Traffic Control, Security, First Aid and Accessibility Requesting to close street(s) to vehicular traffic? Yes ❑■ No ❑ List any streets requiring closure as a result of the event (provide map): The 200 block of E 3rd St in National city between B ave and ID Ave. Date and time of street closure: 25 QeC 16 0500 Date and time of street reopening:5 Dec 1300 ❑ Other (explain) Requesting to post "no parking" notices? Yes ❑ No El ❑ Requested 'No Parking" on city streets and/or parking Tots (list streets/parking Tots) (provide rnap): ❑ Other (explain) Security and Crowd Control Depending on the number of participants, your event may require Police services. Please describe your procedures for both Crowd Control and Internal Security: Christmas with kids is supported by plenty of volunteers on Christmas morning, providing its own crowd control and security Have you hired Professional Security to handle security arrangements for this event? Yes ❑ No IN If YES, name and address of Security Organization Security Director (Name): Phone: xisir ; ,*s cres,of a p roessi al ae +r -Ago* e 1 mar on mitt ''rovide'a'copy: kifidate, i vrd its` () - S� tom: do arS er: �1 - lluon dollars a ate as.' 1 � 9 penal ihnsut l d rsemen 1044ottiiiillat04,4 , t~'v truF cej s: b�� ltf:x* d ,yvendor or rer - s sk lan ' ` rei rdl opl g4r`* e' :4 �MsrA:l. 3.- _ ' �#• $.M.:A eR" ,..off. 4�^:. _ ... Is this a night event? Yes ❑ No ® If YES, please state how the event and surrounding area will be illuminated to ensure safety of the participants and spectators: 3 81 of 104 First Aid Depending on the number of participants, your event may require specific First Aid services. First aid station to be staffed by event staff? Yes 0 No ❑� First aid/CPR certified? Yes ❑ No ❑ ❑ First aid station to be staffed by professional company. b Company Accessibility Please describe your Accessibility Plan for access at your event by individuals with disabilities: Event is out -doors on a city street. No additional access needed for event. Elements of your Event Setting up a stage? Yes ❑ No ❑i ❑ Requesting City's PA system ❑ Requesting City Stage; if yes, which size? 0 Dimensions (13x28) ❑ Dimensions (20x28) ❑ Applicant providing own stage [► (Dimensions) Setting up canopies or tents? # of canopies size # of tents size ❑ No canopies/tents being set up Setting up tables and chairs? ❑ Furnished by Applicant or Contractor # of tables ❑ No tables being set up # of chairs ❑ No chairs being set up ❑ (For City Use Only) Sponsored Events — Does not apply to co -sponsored events # of tables ❑ No tables being set up # of chairs ❑ No chairs being set up Contractor Name Contractor Contact Information Address 4 City/State Phone Number 82 of 104 Setting up other equipment? ❑ Sporting Equipment (explain) ❑ Other (explain) ® Not setting up any equipment listed above at event Having amplified sound andlor music? Yes ❑ No IM PA System for announcements ❑ CD player or DJ music ❑ Live Music ► ❑ Small 4-5 piece live band ► ❑ Large 6+ piece live band D Other (explain) If using live music or a DJ. ► Contractor Name 110. Address C3iylSiate Phone Number Using lighting equipment at your event? Yes ❑ No0 0 Bringing in own lighting equipment ❑ Using professional lighting company ► Company Name Address Clty/State Phone Number Using electrical power? Yes ❑ No ❑1 ❑ Using on -site electricity ❑ For sound andlor lighting ❑ For food andlor refrigeration ❑ Bringing in generators) 0 For sound andlor lighting 0 For food andlor refrigeration _Vendor. I.nfowl atio. PLEASE NOItt..Y be required to:apply for a inaiporifrit health permit iffood orbeverages 411,9 6:014 0100 4WaYillOng ur sW- epeOet*eet. Mee r is and rmalarranneonpere3:. tha Special :ice Guk e. Foradditional lefenitailen tibtainieg tern qo 111040 *milk pisase contact he COO* Of San o l r me ea . r . Having food and non-alcoholic beverages at your event? Yes ❑ Noll ❑ Vendors preparing food on -site ► # P. Business License # If yes, please describe how food will be served andlor prepared: If you intend to cook food in the event area please specify the method: GAS ❑ ELECTRIC ❑ CHARCOAL ❑ OTHER (Specify): ❑ Vendors bringing pre -packaged food ► # ► Business License # ❑ Vendors bringing bottled, non-alcoholic beverages (i.e., bottled water, can soda, etc.) ► # ❑ Vendors welling food #1 ❑ Vendors selling merchandise # e Business Lic nee #(s) ► Business License #(s) 5 83 of 104 ❑ Food/beverages to be handled by organization; no outside vendors ❑ Vendors selling services # ► Business License #(s) ► Explain services ❑ Vendors passing out information only (no business license needed) # ► Explain type(s) of information ❑ No selling or informational vendors at event Having children activities? Yes 0 No❑■ PLEASENOTE:• ill The evelit'.0flitabie AmPe Ore primed at event, «Nat eq�+tres pi m erei t4 liebililyinSigancp with of at liter St Vilkendollars per epcurfence4.2 Wen dollars ate. in addd on, -the. City of Nattonal.0 . must be'named as Ana oil Insured.- ,iatotrarCtoisisperate endorsement, Web Saone pp:440 the vendor er. Ile Insurer to the is R Me r, -*no :with the cerhhogte of iThStitattee, fer:appiws1 prior" the event- T3 a application shotjd be"bled at least one week pr r to The event .`here is. a 1 fee to process the permit apron.. .forbAtettions or'.tx obtain a. copy of the *i acility. tUse. icat n ,. *see contact the tang sreertng ubhc Works Department et 1.0 336H4589. ❑ Inflatable bouncer house # ❑ Inflatable bouncer slide # ❑ Other ❑ Rock climbing wall Height ❑ Arts & crafts (i.e., craft making, face painting, etc.) Having fireworks or aerial display? Yes ❑ No ❑■ 0 Vendor name and license # Dimensions Duration Number of shells Max. size Pi.090E ! #TE-: _. 41e a:Vint firewbirks.or:OnOther eenaI is 'Manned for y r event fihe t r of. Nab** Crty reotiges commercial"l ability ranee limits:ofe t east WOO dare per o i r ac i MOO doh.•sg atet ifr odflilMithe'VitiOt National city **to -Tian** MditiOnet tnsUrOgirsdatit toauratee whiph`milbeprovided byt for Or ;:.. insurer to pkes ask Manager;, along tt* Deitifikitto, of tnsur in , for approvai priorto t *elk Dependingtip s ands Oati of the firms di ', a :r res t#iie ntjiit #e otcp0,1.4ifetirosogiatits . me Vendor mutt a a tks"i . f ide *pow 04.Fire. 0004111. 160. end to is . Arranging for media coverage? Yes0 No ❑ Yes, but media will not require special set-up ❑ Yes, media will require special set-up. Describe 6 84 of 104 Event Signage PLEASE NOTE. For City sponsored or co -sponsored events, banners publicizing the event may be -placed on the existing poles on the 1800 block and 3100 block of National City Boulevard. The banners `must be made to the City's specifications Please refer to the City's Special Event Guidebook and Fee :Schedule for additional information. Are you planning to have signage at your event? Yes ❑ No ■❑ ❑ Yes, we will post signage # Dimensions ❑ Yes, having inflatable signage # ► (complete Inflatable Signage Request form) ❑ Yes, we will have banners # ❑ What will signs/banners say? D How will signs/banners be anchored or mounted? Waste Management PLEASE NOTE One toilet for every 250 people is required, unless the applicant can show that there .are sufficient facilities in the immediate area available to the public during the event Are you planning to provide portable restrooms at the event? Yes ®❑ No ❑ If yes, please identify the following: I.Total number of portable toilets: 1 I. Total number of ADA accessible portable toilets: ❑ Contracting with portable toilet vendor. I. 2 Company Phone MP. Load -in Day & Time Dec► Load -out Day & Time Dec 26 ❑ Portable toilets to be serviced_ I. Time Set-up, Breakdown. Clean-up Setting up the day before the event? D Yes, will set up the day before the event. ► # of set-up day(s) ❑ No, set-up will occur on the event day Requesting vehicle access onto the turf? ❑ Yes, requesting access onto turf for set-up and breakdown (complete attached Vehicle Access Request form) l* No, vehicles will load/unload from nearby street or parking lot. 7 85 of 104 ❑ City to install litter fence ❑ Applicant to install litter fence ❑ N/A Breaking down set-up the day after the event? ❑ Yes, breakdown will be the day after the event. ► # of breakdown day(s) ■❑ No, breakdown will occur on the event day. How are you handling clean-up? ❑ Using City crews ❑® Using volunteer clean-up crew during and after event. ❑ Using professional cleaning company during and after event. Miscellaneous Please list anything important about your event not already asked on this application: Please make a copy of this application for your records. We do not provide copies. 8 86 of 104 Special Events Pre -Event Storm Water Compliance Checklist I. Special Event information Name of Special Event: Christen with Kids Event Address: 223 E 3rd St National City, CA 91950 Expected it of Attendees: 300 Event I:ast/Coordinator: Brian Trum Phone Number: (619) 855-9981 II. Storm Water Best Management Practices (BMPs) Review YES NO N/A Will enough trash cans provided for the event? Provide number of trash bins: 5 Will enough recycling bins provided for the event? Provide number of recycle bins: 2 X Will all portable toilets have secondary containment trays? (exceptions for ADA compliant portable toilets) Da all storm drains have screens to temporarily protect trash and debris from entering? Are spill deanup kits readily available at designated spots? t * A Poet -Event Storm Water Compliance elinrkliott will be completed by City Staff. 9 87 of 104 City of National City PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION AGREEMENT Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit. The insurance company issuing the insurance policy must have a A.M. Best's Guide Rating of A:VII and that the insurance company is 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 Organization: Christmas with Kids Person in Charge of Activity: Brian Trum Address: 223 E 3rd St National City, CA 91950 Telephone: Date(s) of Use: HOLD HARMLESS AGREEMENT As a condition of the issuance of a temporary use permit to conduct its activities on public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and the Parking Authority and its officers, employees and agents from and against any and all claims, demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attorneys fees and the costs of litigation, arising out of or related to the use of public property or the activity taken under the permit by the permittee or its agents, employees or contractors_ Digitally signed by Michael Strand Signature of Applicant: Michael StrandDate:2Q16.1123 1D:06:,7-US'QQ' Official Title: Date: For Office Use Only Certificate of Insurance Approved Date 10 88 of 104 Ilmelnopdalloms iisitabille ToyiLsoni immilioicks given Wifirf hoe- _ vito ONI MMwt I Podia Canis irshlint Wait I iy 1 301 II Maw i SPOolos blikraini 4 Ammo ft NON MN to'1 st at mws ' i a Ilk i 11. t tli Ilesidetinam thumb *I. 1 El Who ore svO Q 11 COL 89 of 104 CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DEPARTMENT APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDATIONS AND CONDITIONS SPONSORING ORGANIZATION: Christmas with Kids EVENT: Frank King's Christmas with Kids DATE OF EVENT: December 25, 2018 TIME OF EVENT: 7 a.m. to 11 a.m. APPROVALS: DEVELOPMENT SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ x ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ x ] PUBLIC WORKS YES [ x ] NO [ ] SEE CONDITIONS [ x ] 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 I ] SEE CONDITIONS [ x ] COMMUNITY SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ ] CONDITIONS OF APPROVAL: DEVELOPMENT SERVICES Engineering Due to street closure a complete traffic control plan with detours shown is required. "No Parking" signs are required to be placed a minimum of 72 hour prior to the start of the event. Place "Road Closed" signs on type III barricades at both ends of the road closure, in front of the already proposed barricades. PUBLIC WORKS (619)366-4580 Streets Division Streets will provide 8 barricades for the road to be closed at no cost and will be put up and taken down by applicant. FINANCE Christmas with Kids needs to renew their business license. ,.4 90 of 104 RISK MANAGER (619) 336-4370 I have reviewed the above captioned request for the issuance of a Temporary Use Permit. In order to satisfy the City's insurance requirements it will be necessary that the applicant provide the following: • Provide a valid copy of the Certificate of Liability Insurance wherein the City of National City, its officials, agents, employees and volunteers are named as an additional insured by way of a separate endorsement. • 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. O The insurance company issuing the insurance policy has an A.M. Best's Guide Rating of A: VII and that the insurance company is a California admitted company. • The Certificate Holder reflects: City of National City c/o Risk Manager 1243 National City Boulevard National City, CA. 91950-4397 • Name, address and contact information for the broker providing this insurance policy was provided. 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, FIRE (619) 336-4550 No Cost for this event Stipulations required by the Fire Department for this event are as follows: 1) Maintain Fire Department access at all times. Emergency services access shall be given to all emergency apparatus upon approach. 2) Access for Fire Department shall be maintained at all times. At no time shall fire lanes, fire hydrants, fire protection systems of all types etc. be obstructed at any time. A minimum of 20 feet wide shall be maintained for the use of fire lanes. 91 of 104 POLICE Traditionally this event is well attended. Since both sides of the streets will be closed, there should not be any traffic issues. In the past, the organizers have asked us to help with the arrival of "Santa" before the distribution of these bikes. Timelcalls permitting, we'll try to get our beat officer to stop by and accommodate them for a short period of time. In addition, we'll provide some extra patrol for the event. 92 of 104 CC/CDC-HA Agenda 12/13/2016 — Page 93 The following page(s) contain the backup material for Agenda Item: Scheduling of City Council workshops related to the discussion and preparation of the City of National City's annual budget for Fiscal Year 2018 and Five -Year Strategic Plan. (Finance) 93 of 104 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 13, 2016 AGENDA ITEM NO. ITEM TITLE: Scheduling of City Council workshops related to the discussion and preparation of the City of National City's annual budget for Fiscal Year 2018 and Five -Year Strategic Plan. 'REPARED BY: Ed Prendell, Budget Analyst DEPARTMENT: Finance PHONE: 619-336-4332 APPROVED BY: L�%U/�tq� EXPLANATION: The City of National City operates on a fiscal year calendar: July 1st through June 30th of the following year. On or before June 30th of each year, the operating budget for the following fiscal year is presented to the City Council for adoption. The process of developing the City's annual budget includes a series of events over a four to five month period, including departmental budget reviews and appropriation requests, community meetings via Neighborhood Councils, financial review/analysis by the Department of Finance, and City Council workshops. The fiscal year 2018 annual budget schedule includes a City Council workshop scheduled for February 7, 2017 at 4:00 pm to discuss the City Council's budgetary priorities. In addition, two workshops have been tentatively scheduled for April 25 and May 23, 2017, each at 4:00 pm, for presentation and discussion of the preliminary budget. The latter meeting date may not be needed but is placed on the calendar as a contingency. The City's five-year Strategic Plan is updated every two years, historically in conjunction with the budget process. Therefore, a strategic planning workshop has been tentatively scheduled with the City Council for March 21, 2017 at 4:00 pm. With this item, staff seeks approval of these tentative budget and strategic planning workshop dates. In the alternative, if the dates are not agreeable to the majority of the City Council, direction on alternative dates is sought. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: MIS There is no fiscal impact associated with this item. APPROVED: '-0�air Finance ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Approve staff's recommended budget and strategic planning workshop dates. BOARD / COMMISSION RECOMMENDATION: NA ATTACHMENTS: Budget & Strategic Planning Schedule — Fiscal Year 2018 94 of 104 CALIFORNIA NATIONAL _Ct i'Y INCORPORATtf BUDGET & STRATEGIC PLANNING SCHEDULE - FISCAL YEAR 2018 DATE & TIME DESCRIPTION DEPARTMENT Tuesday, Feb. 7th 4 PM City Council budget priorities Council/Staff Tuesday, Feb. 7th 6 PM Request direction from the City Council for Budget Workshops and Budget Adoption dates Council/Staff Tuesday, Feb. 28th 4 PM City Council - Capital Improvement Program: Needs Assessment and Funding Options Council/Staff Tuesday, Mar. 21st 4 PM TENTATIVE City Council - Strategic Planning Workshop TENTATIVE Council/Staff Tuesday, Apr. 25th 4 PM TENTATIVE Budget Workshop / Preliminary Budget Presentation TENTATIVE Council/Staff Wednesday, May 3rd 6:30 PM Neighborhood Council presentations (Kimball Neighborhood Council Meeting) Finance Thursday, May 11th 6:30 PM Neighborhood Council presentations (El Toyon Neighborhood Council Meeting) Finance Wednesday, May 17th 6:30 PM Neighborhood Council presentations (Las Palmas Neighborhood Council Meeting) Finance Tuesday, May 23rd 4 PM TENTATIVE Budget Workshop (Tentative) TENTATIVE Council/Staff Tuesday, Jun. 6th 6 PM TENTATIVE Budget Hearing / Adoption of Budget TENTATIVE Council/Staff 95 of 104 City (2018) - Council Agenda CC/CDC-HA Agenda 12/13/2016 — Page 96 The following page(s) contain the backup material for Agenda Item: Staff Report: Fiscal Year 2016 and 1st Quarter Fiscal Year 2017 Budget Review. (Finance) 96 of 104 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 13, 2016 AGENDA ITEM NO. ITEM TITLE: Staff Report: Fiscal Year 2016 and 1st Quarter Fiscal Year 2017 Budget Review. PREPARED BY: Mark Roberts, Director of Finance PHONE: 619-336-4265 EXPLANATION: See attached staff report. DEPARTMENT: Finance� iv/ APPROVED BY: L 6t /eG FINANCIAL STATEMENT: ACCOUNT NO. NA APPROVED: Finance APPROVED: MIS ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Accept the staff report as presented. BOARD / COMMISSION RECOMMENDATION: NA ATTACHMENTS: Staff report 97 of 104 CALIFORNIA ems+ Nat °N1AL CHH'y C.--;vcaoRCIpORIA.To City Council Staff Report December 13, 2016 ITEM Staff Report: Fiscal Year 2016 and Pt Quarter Fiscal Year 2017 Budget Review BACKGROUND Consistent with the City of National City's Strategic Plan element of providing consistent financial updates, this report provides a review of the financial operating results of the City for fiscal year 2016 and a status report for the first quarter of fiscal year 2017. Budgets are projections based on known and anticipated future revenues and expenditure obligations. Throughout the fiscal year, staff monitors and analyzes actual revenues and expenditures against projections, providing periodic reports to the City Council, City Manager, and department directors. The totals presented herein for fiscal year 2016 are a summary of the actual revenues and expenditures compared to the corresponding budgeted amounts for the year. However, as of the date of this report, the independent audit for fiscal year 2016 has not concluded. As a result, the actual amounts are subject to change should adjustments be necessary prior to closing the books for the period. The fiscal year 2017 first quarter data reflects revenue and expenditure totals for the period of July 1 St through September 30th compared to the same period for the prior year. DISCUSSION Fiscal Year 2016 One of the major activities following the end of a fiscal year is the preparation for the annual audit of the City's financial records and completion of the comprehensive annual financial report (CAFR). This work includes such activities as processing final invoices for services and products provided by outside vendors prior to fiscal year-end; ensuring all revenues and expenditures have been appropriately accounted for; and comparing bank and investment account statements with general ledger balances, reconciling discrepancies, and posting adjusting (journal) entries as necessary. Much of this work has been completed, and it is anticipated the fiscal year 2016 CAFR will be completed by December 29, 2016. It is expected the CAFR will show an increase in the total fund balance of the City's General Fund due to a combination of overall cost savings and revenues which exceeded projections. The variances between budgeted and actual revenues and expenditures are summarized below. 98 of 104 Page 2 Staff Report — Fiscal Year 2016 and 1st Quarter Fiscal Year 2017 Budget Review December 13, 2016 Revenues The City receives revenues from various sources, some of which provide unrestricted cash that may be used at the City's discretion. Other revenues are reserved for specified purposes, for example, grant funds received for capital projects. Actual revenues for fiscal year 2016, listed by source in the table below, were higher than the budgeted total by more than $5.3 million. Fiscal Year -End Revenue Totals Revenue Source Adjusted Budget' Actual (Estimated) Variance Sales & Use Tax $ 14,703,370 $ 15,033,297 $ 329,927 District Transactions & Use Tax 10,216,000 10,607,345 391,345 Property Tax' 2,114,005 1,927,422 (186,584) Property Tax in Lieu of VLF 5,736,819 5,690,092 (46,727) Property Tax in Lieu of Sales Tax 3,255,629 3,372,747 117,118 Other Revenue 11,537,379 16,242,270 4,704,891 Total $ 47,563,202 $ 52,873,172 $ 5,309,970 adopted budget, plus budget adjustments 2 reflects reduction for property tax allocation to the Library and Parks Maintenance funds The positive variances (actual vs budget) of $329,927 in sales & use tax revenue and $391,345 in district transactions & use ("Proposition `D"') tax revenue resulted from growth in retail sales that exceeded expectations, especially in the categories of autos & transportation and business & industry. Property taxes for fiscal year 2016 were less than anticipated by $186,584. Staff uses the best information available to project these revenues at the time of budget development; however, these estimates are prepared in advance of the release of assessed values by the San Diego County Assessor in June and subsequent adjustments to those values. The primary contributors to the negative variance are the exemption of the Park Villas Apartments property and a drop in the taxable value of unsecured properties. Property tax in lieu of VLF (Vehicle License Fee) revenue ended the year slightly below its budgeted amount. However, this revenue, which is tied directly to the annual reported change in assessed value, has consistently climbed over the past five years, when excluding exemptions, changes in ownership, and completion of new construction. The State Department of Finance determines the City's property tax in lieu of sales tax allocation after adoption of the City's budget. This revenue was higher than estimated during preparation of the budget. The "Other Revenue" category includes various accounts related to ongoing City operations, one-time events, and capital projects reimbursements. The positive variance of $4.7 million in this category is the net result of variances across multiple accounts. Significant components include the following unbudgeted or over -realized revenues: • $1.3 million in unbudgeted reimbursements related to capital projects ($972,372 from the Port of San Diego for construction of the Aquatic Center and $339,118 for the WI-TOD site remediation and Public Works relocation projects); 99 of 104 Page 3 Staff Report — Fiscal Year 2016 and 1st Quarter Fiscal Year 2017 Budget Review December 13, 2016 • the unanticipated $704,121 General Fund share of the $1.8 million settlement agreement between the City and Rosenow Spevacek Group, Inc. ("RSG") identified during the fiscal year 2016 mid -year budget review; • a transient occupancy tax revenue positive variance of $610,588 resulting from the improving economy (The fiscal year 2017 budget accounts for an increase in this revenue); • residual balance distributions and administrative costs reimbursements from the Successor Agency totalling $421,532 more than budgeted; • unbudgeted overtime reimbursements of $240,913 for the Fire Department strike team's participation in fighting various wildfires throughout the State in the amount. Expenditures As of June 30, 2016, General Fund expenses totaled $49.1 million, $5.6 million less than the adjusted budget of $54.7 million. Of this variance, $3.9 million is attributable to amounts budgeted, but not spent, for various capital projects. The unspent capital project appropriations have been carried over to the fiscal year 2017 budget and remain committed to the capital projects approved by Council. Fiscal Year -End Expenditure Totals Expenditure Type Adjusted Budget' Actual (Estimated) Variance Personnel Services $ 31,488,006 $ 31,064,807 $ 423,199 Maintenance & Operations 6,116,917 5,204,556 912,362 Capital Projects 9,932,895 6,016,709 3,916,185 Internal Service Charges 6,766,121 6,674,612 91,509 Other Expenditures 434,899 149,901 284,998 Total $ 54,738,838 $ 49,110,585 $ 5,628,253 adopted budget total, plus budget amendments, encumbrances, & capital projects appropriations carried forward from previous fiscal year(s) The remaining $1.7 million of the variance is due to operational cost savings. Personnel cost savings primarily were due to vacant authorized positions in the City Manager's Office, Engineering & Public Works Department, and City Attorney's Office. Many of these positions have been filled, which likely will decrease savings in fiscal year 2017. Maintenance & operations ("M&O") savings were realized in various accounts, particularly in professional services, contract services, and unemployment insurance. The variance in "Other Expenditures" results from savings in the Refunds, Contributions and Special Payments category, the largest of which occurred in the Fee Study and Successor Agency Property Management accounts, and in the Provision for Contingency account, which is used to provide funding for various small unanticipated expenses not attributable to a specific department. (The fee study will be conducted in fiscal year 2017, and funds have been appropriated accordingly.) 100 of 104 Page 4 Staff Report — Fiscal Year 2016 and 1st Quarter Fiscal Year 2017 Budget Review December 13, 2016 Transfers In/Out While technically not revenues and expenditures (and, hence, not shown above), transfers in and out of the General Fund contribute to fund balance increases and decreases, respectively. Transfers out from the General Fund were $79,998 less than their budgeted total. No transfers into the General Fund were budgeted, but $2.5 million was transferred from various internal service funds to fund the new Facilities Maintenance Reserve. Net Impact on Fund Balance Fiscal year 2016 revenues, expenditures, and transfers resulted in an estimated fund balance gain of $3.3 million, as compared to the budgeted usage of $2.4 million, a positive difference of $5.7 million. However, due to the various factors affecting the categories of fund balance — nonspendable, restricted, committed, assigned, and unassigned, the impact of fiscal year 2016 operations on each category is not yet known. Fund Balance Change — Actual vs Budget (Estimated) Actual (Estimated) Adjusted Budget Variance Revenues $ 52,873,172 $ 47,563,202 $ 5,309,970 Transfers In 2,500,679 - 2,500,679 Total Revenues & Transfers In $ 55,373,851 $ 50,421,106 $ 7,810,649 Expenditures $ (49,110,585) $ (54,738,838) $ 5,628,253 Transfers Out (2,954,340) (3,034,338) 79,998 Total Expenditures & Transfers Out $ (52,064,926) $ (57,773,176) $ 5,708,251 Fund Balance Gain/(Usage) $ 3,308,926 $ (2,399,325) Beginning Fund Balance $ 40,972,080 $ 40,972,080 Ending Fund Balance $ 44,281,006 $ 38,572,755 1st Quarter Fiscal Year 2017 The most useful information at the end of the first quarter (July 1st through September 30th) is a comparison of the fiscal -year-to-date totals of the City's major revenue sources and expenditure categories for the period for the current and prior fiscal years. This information is summarized in the tables below. 101 of 104 Page 5 Staff Report — Fiscal Year 2016 and 1st Quarter Fiscal Year 2017 Budget Review December 13, 2016 Revenues 1st Quarter Revenue Comparison Revenue Source FY 16 FY 17 Sales & Use Tax $ 1,197,705 $ 1,839,466 District Transactions & Use Tax 907,602 1,037,040 Property Tax 43,475 44,431 Property Tax in Lieu of VLF - - Property Tax in Lieu of Sales Tax - - Other Revenue 1,808,549 1,769,405 Total $ 3,957,331 $ 4,700,342 Since it is early in the fiscal year, the ability to project year-end revenue totals is limited. Some facts are known, however. The spike in fiscal -year-to-date sales & use tax revenue is mostly due to the elimination of the property tax in lieu of sales tax, which was created in conjunction with the "triple flip," the State's sales -tax -shifting mechanism whereby one -quarter of the 1 % local sales tax was taken by the State to repay its economic recovery bonds and replaced with county property tax revenue. The elimination of the property tax in lieu of sales tax and restoration of the full 1% local sales & use tax will result in higher sales & use tax revenue in fiscal year 2017 and future years. The increase also is due to the improved economy and a higher "make-up" distribution received from the State during the first quarter of fiscal year 2017 than in the prior fiscal year. The make-up distribution is a quarterly payment to account for the shortage of advanced payments for these revenues in relation to actual collections. However, since the make-up distributions received during the first quarter are associated with increases for their corresponding prior fiscal years, they have no bearing on current -year outcomes. The growth in district transactions & use tax revenue also is attributable to the economy and a higher make-up distribution. Fiscal year 2017 property tax revenue is expected to only slightly exceed that of fiscal year 2016, consistent with budgeted totals. While the revenue is low for both years, this is normal at this point of the year, as the largest portions of property tax revenues are typically received in December and April, corresponding to tax due dates. Having received information from the County regarding fiscal year 2017 distribution of property tax in lieu of VLF, staff can report that this revenue will be $5,909,395, $7,172 above budget. As noted above, the property tax in lieu of sales tax has been eliminated; therefore, this revenue will no longer be received. Because the distribution of these "in lieu of revenues occurs at the same time as property taxes, i.e., in December and April, no allocations of either revenue was received in the first quarter of the current or previous fiscal year. 102 of 104 Page 6 Staff Report — Fiscal Year 2016 and 1st Quarter Fiscal Year 2017 Budget Review December 13, 2016 Expenditures 1st Quarter Expenditure Comparison Expenditure Type FY 16 FY 17 Personnel Services $ 6,329,138 $ 6,806,535 Maintenance & Operations 519,733 485,322 Other Expenditures 2,684,649 2,841,334 Total $ 9,533,520 $ 10,133,190 As with revenues, year-end expenditure totals are difficult to project. Also as with revenues, however, facts are known, given information available. Personnel costs are higher than fiscal year 2016's at the same point due to modest increases to staffing and compensation, and, as noted above, cost savings are less likely due to the filling of vacant positions. Fiscal -year-to-date 2017 M&O expenditures are slightly lower than for fiscal year 2016 due to the timing of these expenses. And although cost savings are again likely in fiscal year 2017, the savings margin (actual vs budget) is likely to be smaller than in recent years due, in part, to the implementation of budget measures designed to improve expenditure projections. Budgetary Outlook The fiscal year 2017 planned use of General Fund fund balance is $5.4 million. Additional labor costs are likely to be significant with expected increases in pension contribution rates having a compounding effect. The $500,000 appropriation to meet the San Diego Association of Governments (SANDAG) "maintenance of effort" requirement for TransNet allocations added in fiscal year 2016 continues, as well as operating support for the Housing Choice Voucher program. And the need to replace aging fleet vehicles adds pressure on the current year's and future budgets. However, based on the City's recent history, the actual use of fund balance is anticipated to be lower than this amount due to conservative revenue projections and spending. Conclusion As discussed above, the City's financial operating results for fiscal year 2016 were positive with overall revenues surpassing projections and expenditures in all major categories ending the year well below budget. Thus, the fund balance of the General Fund grew. But while over -realized revenues and fiscal prudence played a role in this outcome, events that cannot be assumed to continue at the same levels also contributed, including unbudgeted one-time revenues and unspent capital appropriations. Factors likely to affect fund balance in the future include the following: • Actuarial adjustments by the California Public Retirement System (Ca1PERS) are estimated to require increases in the City's employer contribution to employee pension funds into the foreseeable future. For fiscal year 2018, the City's contribution is 103 of 104 Page 7 Staff Report — Fiscal Year 2016 and 1st Quarter Fiscal Year 2017 Budget Review December 13, 2016 estimated to increase over the fiscal year 2017 rate by 1.66% of payroll to 27.462% for miscellaneous employees and by 2.95% to 48.005% for public safety employees. • An assessment of the City's deferred facilities maintenance needs is expected to be completed during the current fiscal year. While the cost of this maintenance currently is unknown, it is expected to be significant. Staff currently is analyzing various options to finance this cost, including use of the newly created Facilities Maintenance Reserve. • With the City's renewed focus on economic development, including the addition of a Community Development Specialist II to spearhead the effort, it is hoped the City will be able to spur new development and enhance its tax base. Any such new development and subsequent tax base enhancement are likely to be realized in future years, however. A report on the program's action/strategic plan and timeline is anticipated for early 2017. RECOMMENDATIONS Accept this staff report. 104 of 104