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12-05-17 CC HA Agenda Packet (3)
AGENDA OF A REGULAR MEETING - NATIONAL CITY CITY COUNCIL/ COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY CALIFORNIA NATIONAL CITY VRINCORPORATED RON MORRISON Mayor ALBERT MENDIVIL Vice Mayor JERRY CANO Council»iember MONA RIOS Councilniember ALEJANDRA SOTELO-SOLIS Councilnaeniber 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 5, 2017 - 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 297 CC/CDC-HA Agenda 12/5/2017 — 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. Spanish to English interpretation services are available to members of the public who wish to speak to the City Council during the meeting. "Request to Speak" forms requesting interpretation must be filed within the first two hours of the meeting. Espanol a los servicios de interpretacion Ingles de audio esta disponibles para los miembros del publico que desean hablar con el Ayuntamiento durante del Consejo Municipal. "Solicitud para hablar de" formas solicitud de interpretacion deben ser presentadas dentro de las dos primeras horas del Consejo Municipal. COUNCIL REQUESTS THAT ALL CELL PHONES AND PAGERS BE TURNED OFF DURING CITY COUNCIL MEETINGS. 2 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 3 OPEN TO THE PUBLIC A. CITY COUNCIL CALL TO ORDER ROLL CALL PLEDGE OF ALLEGIANCE TO THE FLAG PUBLIC COMMENTS (THREE -MINUTE TIME LIMIT) PROCLAMATIONS AWARDS AND RECOGNITIONS PRESENTATIONS 1. 2018 Storm Water Calendar Presentation. (Tirza Gonzales, Executive Secretary) (Engineering/Public Works) 2. SDG&E Rate Reform Update. (Laura Welty, Outreach Supervisor) INTERVIEWS / APPOINTMENTS CONSENT CALENDAR 3. 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) 4. Approval of the Minutes of the Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City of April 4, 2017 and Adjourned Regular Meetings of the City Council and Community Development Commission - Housing Authority of National City of February 28, 2017 and April 25, 2017. (City Clerk) 5. Resolution of the City Council of the City of National City, 1) authorizing the Mayor to execute a two-year Agreement with Geosyntec Consultants, Inc. for a not -to -exceed amount of $500,000 to provide on -call project support services for National City's Capital Improvement Program (CIP), including, but not limited to, environmental engineering, site assessments, characterization and remediation, groundwater monitoring and reporting, and preparation of environmental studies in accordance with the National Environmental Policy Act (NEPA) and California Environmental Quality Act 3 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 4 (CEQA); and 2) authorizing the City Manager to execute any project - specific supplemental agreements, as may be required for grant funded projects. (Engineering/Public Works) 6. Resolution of the City Council of the City of National City approving and adopting the updated Multi -Jurisdictional Hazard Mitigation Plan, and authorizing the City Manager to implement said Plan. (Building/Fire) 7. Resolution of the City Council of the City of National City authorizing the acceptance of the lowest, responsive, responsible bid, for the purchase of (1) 2018 Nissan Altima, for the Police Department from Mossy Nissan of National City, in the amount of $18,896.22. (Finance) 8. Resolution of the City Council of the City of National City authorizing the acceptance of the lowest, responsive, responsible bid, for the purchase of (1) 2018 Toyota Camry LE, for the Police Department from Kearny Mesa Toyota of San Diego, in the amount of $24,016.74.(Finance) 9. Resolution of the City Council of the City of National City authorizing the acceptance of the lowest, responsive, responsible bid, for the purchase of (1) 2018 Honda Accord LX, for the Police Department from Pacific Honda of San Diego, in the amount of $24,228.46. (Finance) 10. Warrant Register #17 for the period of 10/18/17 through 10/24/17 in the amount of $1,485,441.46. (Finance) 11. Warrant Register #18 for the period of 10/25/17 through 10/31/17 in the amount of $269,109.72. (Finance) PUBLIC HEARINGS: ORDINANCES AND RESOLUTIONS 12. Public Hearing to Consider Proposed Adjustments to Sewer Service Charges in accordance with Proposition 218 requirements, and the adoption of a Resolution of the City Council of the City of National City approving the proposed rate adjustment. (Engineering/Public Works) 13. Public Hearing on the Introduction of an Ordinance of the City Council of the City of National City repealing Ordinance No. 2003-2226 and adopting an Ordinance establishing Sewer Service Charges for fiscal years 2018- 19, 2019-20, 2020-21, 2021-22, and 2022-23. (Engineering/Public Works) 14. Public Hearing on the Introduction of an Ordinance of the City Council of the City of National City amending Title 11, Section 11.16.010 Speed Zones Designated, of the National City Municipal Code establishing speed limits on various roadways based on certified Engineering and Traffic Surveys Default Item. (Engineering/Public Works) NON CONSENT RESOLUTIONS 4 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 5 15. Resolution of the City Council of the City of National City authorizing the Mayor to execute a Maintenance & Operating Agreement by and between the City and A Reason to Survive (ARTS), consisting of a term of 36 months with an option to extend the term for up to two additional 60 month periods for the city -owned land and building located at 200 East 12th Street in National City. (Housing & Economic Development) NEW BUSINESS 16. Report from the Civil Service Commission to the City Council of the City of National City. (Human Resources) 17. Discussion regarding City Council Policy #802, "City Support for Special Events, Activities, Programs and Services." (Finance) B. COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY CONSENT RESOLUTIONS - HOUSING AUTHORITY PUBLIC HEARINGS: RESOLUTIONS - HOUSING AUTHORITY NON CONSENT RESOLUTIONS - HOUSING AUTHORITY 18. Resolution of the Community Development Commission -Housing Authority of the City of National City accepting the findings from the analysis completed by Keyser Marston Associates, Inc., of four financial proposals submitted through a Request for Proposals process; selecting the development team comprised of Community HousingWorks, Inc., a California non-profit public benefit corporation, and Mercy Housing California, Inc., a California non-profit public benefit corporation, for the recapitalization and rehabilitation of Kimball and Morgan Towers located at 1317 and 1415 "D" Avenue in National City; and authorizing the City Manager to execute an Exclusive Negotiating Agreement in order to begin negotiations with the selected developer. (Housing & Economic Development) NEW BUSINESS - HOUSING AUTHORITY C. REPORTS STAFF REPORTS MAYOR AND CITY COUNCIL CLOSED SESSION REPORT ADJOURNMENT 5 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 6 Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City - Tuesday - December 19, 2017 - 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 January 2, 2018 through January 16, 2018: January 02 - Dispense with Meeting - 6:00 pm January 16 - Regular Meeting - 6:00 pm 6 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 7 The following page(s) contain the backup material for Agenda Item: 2018 Storm Water Calendar Presentation. (Tirza Gonzales, Executive Secretary) (Engineering/Public Works) 7 of 297 Item 12/5/2017 2018 STORM WATER CALENDAR PRESENTATION TIRZA GONZALES, EXECUTIVE SECRETARY (ENGINEERING/PUBLIC WORKS) 8 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 9 The following page(s) contain the backup material for Agenda Item: SDG&E Rate Reform Update. (Laura Welty, Outreach Supervisor) 9 of 297 Item # 12/05/17 SDG&E RATE REFORM UPDATE (Laura Welty, Outreach Supervisor) 10 of 297 Rate Reform Update Presented by Laura Welty, Outreach Supervisor kir SDGf A *Sempra Energy utility's' December 5, 2017 11 of 297 Rate Reform Customer Journey S* a IA)Sempra Energy utiiity® 2015 2016 2017 2018 2019 September Consolidation from 4 tiers to 3 tiers Minimum monthly bill CARE adjustments July Consolidation from 3 tiers to 2 tier; Consolidation of Tiers High Usage Charge Opt -in TOU Pilot I Electric rates will be consolidated from four tiers to two tiers, and the differences between the tiers will be reduced -- ultimately with a 25 percent differential between the two tiers. CARE Adjustments The effective CARE discount will transition from today's 41 percent to 35 percent by 2020. Time of Use Rates Default TOU Pilot Minimum Bill Customers will have a minimum monthly bill of $10, and $5 for customers enrolled in the CARE program. High Usage Charge The High Usage Charge (HUC) is intended to encourage energy conservation for customers whose usage is above 400 percent of baseline - meaning double the average customer's usage in their climate zone. Time -of -use Rates Residential customers will be automatically enrolled into "time -of -use" (TOU) rates. This means the price of electricity will depend on the time of day rPnrl- t,CP energy. TOU pilots will be conducted with customers in 2017-2018. 12 of 297 High Usage Charge Snt4 A *Sempra Energy utility® Proposed rates effective November 1, 2017 through May 31, 2018 Tier 1 214/kWh Tier 2 374/kWh High Usag Charge 434/kWh 134,000 "At -Risk" Customers (billing history at 350% of baseline) J 91,000 "High -Risk" Customers (billing history at 400% of baseline) 1 • To be a HUCster... Baseline x 4 Time of Use Rates —Changes as of 12/1 Pricing plan will change to two period rate structure year round • On -Peak — 4p — 9p (weekdays only) • Off -Peak — all other hours • option to move to three period Off Pea k S* a A)Sempra Energy utiiity® Event time period for Reduce Your Use will be 2pm — 6pm May changed to a Winter month Off Pea k 6a 7a 8a 9a 10a 11a 12p 1p 2p 3p 4p 5p 6p 7p 8p 9p 10p 11p 12a la 2a 3a 4a 5a 6a 14 of 297 Why is the peak shifting Over time, renewable energy has changed usage patterns SDG&E continues to grow the percentage of electricity from renewable sources to serve customers SDG&E is leading the nation with 43% Snt4 AA)Sempra Energy utility® More customers are generating their own power with wind and solar systems 15 of 297 The result is the late afternoon and early evening is when electricity is needed the most (4pm-9pm) It's time to start thinking • about energy differently. ME A i*Sempra Energy uurv. SDGf E A *Sempra Energy utility® ME KT S4.nglra f ningy inane San Dlega Gas & Electric. P.D. Box 129831 San DIego, CA 92112-9831 PRSRT STD U.S. POSTAGE PAID SAN DIEGO CA PERMIT NO. 213 Starting in January 2018, your bill won't just be based on how much energy you use, but also when. Throughout California, new energy pricing plans are coming in 2018 that are not only based on how much energy you use, but also when you use it. These new plans give you new ways to save on your bill, providing more choice around managing your energy use. You can find out more about these Time of Use plans at sdge.com/TOUPlans, MA' 'Ain Mt. C„A&I.1II.:plupuAyW null lavpucllw amps. Al AQM1I, mum. A A)Sempra Energy utility® Sign up for My Account You'll be able to do much more than just pay your bill online, you can: Get an "at -a -glance" view of your energy use. analyze your enteo rgy.help ilillii • Get a personalized action plan :o manage your energy costs. Get an app 1 ilklaliMAIra7151;1FTWMIM _ 10i Clothes Washers 4. Electric Water Heaters % 4* 17 of 297 umps i> Smart Thermostats Gas Water Heaters VA Water & Energy Savings Kit 4 Air Conditioners Dryers SDGf E a A)Sempra Energy utimy Q&A CC/CDC-HA Agenda 12/5/2017 — Page 19 The following page(s) contain the backup material for Agenda Item: Motion of the City Council of the City of National City approving the waiving of the reading of the text of the Ordinances considered at this meeting and providing that such Ordinances shall be introduced and/or adopted after a reading of the title only. (City Clerk) 19 of 297 Item # 12/05/17 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) 20 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 21 The following page(s) contain the backup material for Agenda Item: Approval of the Minutes of the Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City of April 4, 2017 and Adjourned Regular Meetings of the City Council and Community Development Commissi 21 of 297 Item # 4 12/05/17 APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY OF APRIL 4, 2017 AND ADJOURNED REGULAR MEETINGS OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY OF FEBRUARY 28, 2017 AND APRIL 25, 2017. (City Clerk) 22 of 297 Book 99 / Page 57 04-04-2017 DRAFT DRAFT DRAFT MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY April 4, 2017 The Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City was called to order at 6:08 p.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council / Board members present: Cano, Mendvil Morrison, Rios, Sotelo-Solis. Administrative Officials present: Dalla,,:;Deese, Duor7 ,, Eiser, Manganiello, Roberts, E<, Stevenson, Vergara, Williams,larra.: Others present: City Treasurer Mitch eauchamp and Student Representative Jose Estrada, lei PLEDGE OF ALLEGIANCE TO THE FLAG By i PUBLIC COMMENTS y ,.. Jacqueline Reynoso, Chamber of,Commerce CEO, e tended an invitation to the Chamber's Annual Jo'bp,Fair on April 12th. �` Karen Clayton, � g Valle L;spoke in support of a ban on pet stores. Lawrence �EEmerson, �atiorj l' . ' , provided information on the benefits and programs availabje`for electric ve is ,.t. Jesus reciado, Nation l City oke in support of developing tourism in National e and suggested efforts 6eg1. �n on o�Gating a cruise ship terminal at 24'h Street. PROCLAMATIONS'; PROCLAMATIO$ :ADMI. 02-2-1) 1. Proclaimi g#the.mon h of April, 2017 as "Fair Housing Month" PRESENTATIONS OR RON MORRISON COUNCIL MEETING PRESENTATIONS / AWARDS & RECOGNITIONS 2017 (102-10-12) 2. The National City Police Department will provide a presentation on the improvements to the Police Facility, The improvements include upgrades to storage, electrical and waterproofing. (Police) 23 of 297 Book 991 Page 58 04-04-2017 INTERVIEWS / APPOINTMENTS BOARDS & COMMISSIONS ADMIN (101-1-1) 3. Interviews and Appointments: Planning Commission. (City Clerk) ACTION: Ballots were distributed for a vacant position on the Planning Commission. Mr. Gonzalo Quintero received four votes (Cana, Morrison, Rios, Sotelo-Solis). David Garcia received one vote (Mendivil). Gonzalo Quintero was declared duly appointed to the Planning Commission. CITY COUNCIL CONSENT CALENDAR ADOPTION OF CONSENT CALENDAR: Item No. 4 (NCMC), Item No. 5 (Minutes), Item Nos. 6 through 13 (Resolution No. 2017-40 through 2017-47), Item No. 14 (TUP), Item No. 15 (Report), Item'ITos. 16 through 18 (Wak rtt Registers). Motion by Sotelo-Solis, seconded by Canoi`.to approve the Consent Calendar. Carried by unanimous vote CONSENT CALENDAR (cont.) MUNICIPAL CODE 2017 (506-2-32) ;. '-, 4. MOTION,; OF 'THE CITY COUNCIL`fOF THE}CITY OF NATIONAL CITY APPROVING THE WAIVING OPTHE READING OF THE TEXT OF THE ORDINANCES,, CONSIDERED AT, THIS MEETING AND PROVIDING THAT;:, SUCH '';',ORDINANCES SHALL BE INTRODUCED AND/OR ,:;ADOPTED AFTER.A READINGOF THE TITLE ONLY. (City Clerk) ACTION: Approved. See above. APPROVAL OF THE MINUTES' .. 5. APPROVAL OF THE MINUTES OF THE REGULAR MEETINGS OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION - HOUSING , AUTHORITY OF THE CITY OF NATIONAL CITY OF SEPTEMBER20 2016 AND JANUARY 17, 2017. (City Clerk) ACTION:;`Approved. See above. FINANCIAL MANAGEMENT 2016-2017 (204-1-32) 6. Resolution No. 2017-40. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE APPROPRIATION OF $110,000 IN THE PLAZA BOULEVARD WIDENING CIP EXPENDITURE ACCOUNT FROM TRANSPORTATION DEVELOPMENT IMPACT FEE (TDIF) FUND BALANCE FOR CONSTRUCTION OF THE PLAZA BOULEVARD WIDENING PROJECT. (Engineering/Public Works) ACTION: Adopted. See above. 24 of 297 2 Book 99 / Page 59 04-04-2017 CONSENT CALENDAR (cont.) CONTRACT (C2017-18) 7. Resolution No. 2017-41. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY MANAGER TO EXECUTE A COMPENSATION AGREEMENT WITH THE AFFECTED TAXING ENTITIES PERTAINING TO THE SALE OF A 1.07-ACRE PARCEL OF VACANT LAND LOCATED AT 1640 EAST PLAZA BLVD. IN NATIONAL CITY RETAINED BY THE CITY;,OF NATIONAL CITY FOR FUTURE DEVELOPMENT PURSUANT TO THE REVISED LONG RANGE PROPERTY MANAGEMENT PLAN. (Housing:& Economic Development) ACTION: Adopted, See above. EQUIPMENT 1 VEHICLE PURCHASE ADIV.IIN (209-1-1) 8. Resolution No. 2017-42. RESOLUTION OF THE CITY,COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE ACCEPTANCE OF THE LOWEST, RESPONSIVE, RESPONSIBLE BID, FOR THE BUILD OUT OF (1) 2017 CHEVROLET SUBURBAN;- FOR -THE FIRE DEPARTMENT FROM JOHNSON EQUIPMENT OF F'ERRIS, IN THE AMOUNT OF $32,325.40. (Finance) ACTION: Adopted. 4 ed-above. MUNICIPAL CODE,.201,7.(506-2-32) ` 4< 9, ResolutionA.No, -20.. 7, 43. RESOLUTJON OFjHE CITY COUNCIL OF THE CITY OJ NATIONAL CITY' APPROVING •AND AUTHORIZING THE ISSUANCE:OF A WRITTEN REPORT PERTAINING TO A MORATORIUM ORDINANCE:: ;-PROHIBITING THE ISSUANCE OF MASSAGE TECHNICIAN PEFZ,MITS=-`QRg ]CENSES FOR A PERIOD OF 45 DAYS, AND��*PIQ$H1BiTlh1G NEW ) MASSAGE ESTABLISHMENTS FROM OCATING 1,THIN ';THE CITY'E:OR A PERIOD OF 45 DAYS. (City ttorney -4� ACTION Adopted. See above. GRANT 1 PUBUC SAFET .(206-4-27) 10. Resoluti :No 201.'44. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 6TIONAL CITY RATIFYING THE ACCEPTANCE OF THE 3RD DISBURSEMENtFROM THE STATE OF CALIFORNIA AB109 GRANT FUND, ADM1NLSTERED THROUGH THE CITY OF SAN DIEGO IN THE AMOUNT OF $75,208.00, AND THE ESTABLISHMENT OF A FISCAL YEAR 2017 APPROPRIATION OF $75,208.00 AND A CORRESPONDING REVENUE BUDGET FOR MONITORING AND ASSISTING FRONTLINE LAW ENFORCEMENT IN OUR REGION WITH THE PROBLEMS ASSOCIATED WITH THE EARLY RELEASE OF NON-VIOLENT OFFENDERS FROM STATE PRISON. (Police) ACTION: Adopted. See above, 25 of 297 Book 99 / Page 60 04-04-2017 CONSENT CALENDAR (cont.) PARKING & TRAFFIC CONTROL ADMIN 2017 (801-2-38) 11. Resolution No. 2017-45. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING INSTALLATION OF A BLUE CURB DISABLED PERSONS PARKING SPACE WITH SIGN IN FRONT OF THE RESIDENCE AT 411 "T" AVENUE (TSC NO. 2017-07). (Engineering/Public Works) ACTION: Adopted. See above. z , PARKING & TRAFFIC CONTROL ADMIN 2017(80'2-38) 12. Resolution No. 2017-46. RESOLUTION;.OF`THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING INSTALLATION OF A BLUE CURB DISABLED PERSONS PARKING SPACE zWITH SIGN IN FRONT OF THE RESIDENCE AT 13361 ARDING AVENLtE TSC NO. 2017-08). (Engineering/Public Works) ACTION: Adopted. See above.. PARKING & TRAFFIC CONTROL ADMIN 20174841-2-38) 13. Resolution No. 2017-47,, RESOLUTIONT'O THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,' AU'T.�HORIZING INSTALLATION OF A BLUE CURB DISABLED PERSONS PARKING SPACEWITH SIGN ON W. 18TH STREET, WEST ,OF THE.:CROSSWALK, IN .FRONT OF KIMBALL ELEMENTARY SCHOOL LOCATED fAT3027WEST 18TH STREET (TSC NO. 2017-10). (Eng1h eying/PublicWorks) T. ' ACTION: Adopfed. See 66 e. ALAkt. VA TEMPORARY USE PERMITS 2017>(203-1.33) 14.:i Temporary:.Use Permit Halloween `retail tent store hosted by Halloween .' Express at Westfield. Plaza Bdh to Mall from August 31, 2017 thru ':._November 4, 201T with'no ,waiver of fees. (Neighborhood Services) ACTION:'}Approvedi�See above. FINANCIALIMANAGEMENT 2016-2017 (204-1-32) 15. Investment,transactiions for the month ended January 31, 2017. (Finance) ACTION: Fi[ed'. See above. , WARRANT REGISTERJULY 2016 — JUNE 2017 (202-1-31) 16. Warrant Register #32 for the period of 02/01/17 through 02/07/17 in the amount of $1,954,554.52. (Finance) . ACTION: Ratified. See above. WARRANT REGISTER JULY 2016 — JUNE 2017 (202-1-31) 17. Warrant Register #33 for the period of 02/08/17 through 02/14/17 in the amount of $1,740,252.31, (Finance) ACTION: Ratified. See above. WARRANT REGISTER JULY 2016 —JUNE 2017 (202-1-31) 18. Warrant Register #34 for the period of 02/15/17 through 02/21/17 in the amount of $473,307.79. (Finance) ACTION: Ratified. See above. 26 of 297 4 Book 99 1 Page 61 04-04-2017 PUBLIC HEARINGS TRANSPORTATION DEVELOPMENT PLANNING ADMIN (802-3-1) 19. Public Hearing of the City Council of the City of National City to consider amending the previously adopted Transportation Development Impact Fee (TDIF) schedule and annual adjustment to the TDIF, pursuant to National City Municipal Code Section 4.52.100 and consistent with Government Code Section 66017, proposing to increase the TDIF by 2%, as required by San Diego Association of Governments (SANDAG), resulting in the fee adjusting from $2,357 per new residential dwel.lir,g unit to $2,405 per unit beginning July 1, 2017. (Engineering/Public. oaks) RECOMMENDATION: Hold Public HeffilAto consider amending the previously adopted TDIF schedule and annU6.1.. djustment to the TDIF. TESTIMONY: None. ACTION: Motion by Sotelo-Solis, seconded by Cano, to close the Public Hearing. Carried by unanimous vote ORDINANCES FOR ADOPTION MUNICIPAL CODE 2017 (508 2-2) 20. Ordinance No. 2017 2434*N ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING TITLE 11 OF THE NATIONAL CITY MUNICIPAL CODE BY, AMENDING CHAPTER 11.70 REGULATING TAXICAB AND OTHER FOR -HIRE VEHICLES THROUGH ADOPTION OF SAN DIEG9. MET p POLITAN? T NSIT §YSTEM (MTS) CODIFIED ORDINAN4C,E NO. '(City Attorne9>:% RECOMMENDATIOF4Adopt proposed Ordinance. TESTIMONY: None ;: Y`,�CTION i latign by Sotelo Solisf seconded by Mendivil, to adopt the Ordinance Carried byunapimous vote NOWGONSENT RESOLUTIONS TRANSPORTATION DIE1rELOP31lIENT PLANNING ADMIN (802-3-1) 21. Resol 49n No. 201a748. RESOLUTION OF THE CITY COUNCIL OF THE CITY O;NATIONACITY AMENDING THE PREVIOUSLY ADOPTED TRANSPO,,R:TATIprI;;DEVELOPMENT IMPACT FEE (TDIF) SCHEDULE AND ANNUA / DJUSTMENT TO THE TDIF, PURSUANT TO NATIONAL CITY MUNICIPAL` CODE SECTION 4.52.100 AND CONSISTENT WITH GOVERNMENT CODE SECTION 66017, APPROVING AN INCREASE IN THE TDIF BY 2%, AS REQUIRED BY SAN DIEGO ASSOCIATION OF GOVERNMENTS (SANDAG), RESULTING IN THE FEE ADJUSTING FROM $2,357 PER NEW RESIDENTIAL DWELLING UNIT TO $2,405 PER UNIT BEGINNING JULY 1, 2017. (Engineering/Public Works) RECOMMENDATION: Adopt the Resolution. TESTIMONY: Coyote Moon, National City, spoke in opposition. ACTION: Motion by Sotelo-Solis, seconded by Cano, to adopt the Resolution. Carried by unanimous vote. 27 of 297 5 Book 99 / Page 62 04-04-2017 NON CONSENT RESOLUTIONS (cont.) CONTRACT (C2017-19) 22. Resolution No. 2017-49. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, 1) AWARDING A CONTRACT TO TRI-GROUP CONSTRUCTION AND DEVELOPMENT, INC. IN THE NOT -TO -EXCEED AMOUNT OF $915,818.00 FOR THE 18TH STREET PEDESTRIAN AND BICYCLE ENHANCEMENTS PROJECT, CIP NO. 16-10; 2) AUTHORIZING A 15% CONTINGENCY IN THEAMOUNT OF $137,372.70 FOR ANY UNFORESEEN CHANGES; 3) AUTHORIZING THE MAYOR TO EXECUTE THE CONTRACT; AND 4) ESTABLISHING APPROPRIATION OF REVENUES AND EXPENDITURES_>F6Rx$1,025,000.00 IN STATE ACTIVE TRANSPORTATION GRANT', FUNDS',..FOR THE PROJECT. (Engineering/Public Works) RECOMMENDATION: Adopt theResolution. TESTIMONY: None..;:. ACTION: Motion by Rios; ':seconded_ by Cana; „to adopt the Resolution. Carried by unanimous vote xz a t SD COUNTY WATER AUTHORIT;ADMIN (907-07 12) 23. Resolution No. 2017-50.1RESOLUTION OF'119E CITY COUNCIL OF THE CITY OF NATIONAL CITY;>;SUPPORTI.NG TIE. SAN DIEGO COUNTY WATER AUTHORITY'S LONG TERM.; WATEtSUPPLY PLAN AND LITIGATION `AGAINST THE = METROPOLITAN WATER DISTRICT OF SOUTHERN.CALIFORNIA. (City,Mganager) RECOMMENNDATION:Adopt the Resolution. TESTIMONY: None:: . ACTION: 'Motion bye„Rios, ' seconded by Cano, to adopt the Resolution. Carried by unanimous vote. NEW B1.JSINESS TEMPORARY:USE PERMITS 2017 (203-1-33) 24. Temporary; Use Pe, i; iit - 9th Annual Rock the Bay Triathlon sponsored by GranFondo .Cycling Tours on Sunday, September 17, 2017 from 6:30 a.m. to 10:00 a.rriv,rithho waiver of fees. (Neighborhood Services) RECOMMENDATCON: Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval with no waiver of fees or in accordance to City Council Policy 802. TESTIMONY: None. ACTION: Motion by Sotelo-Solis, seconded by Cano, to approve staff recommendation. Carried by unanimous vote. 28 of 297 al Book 991 Page 63 04-04-2017 NEW BUSINESS (cont.) STREET VACATION ADMIN 2011-2020 (902-26-6) 25. A Request to Initiate a Street Vacation of a portion of undeveloped "M" Avenue between East 16th Street and East 14th Street. (Applicant: Ralph Gonzales) (Case File No. 2017-04 SC) (Planning) RECOMMENDATION: Staff recommends that the City Council initiate the street vacation. TESTIMONY: None. ACTION: Motion by Cano, seconded b, Rios, to approve staff recommendation. Carried by unanimo,u v te. VICE MAYOR APPOINTMENT ADMIN (101-20-1)' 26, Continued discussion on establishing` Iicy �:a°policy';far selection of the Vice - Mayor. (City Manager) ' `' RECOMMENDATION: Provide direction to staff. TESTIMONY: None. ACTION: Motion by Morrisvfl;. seconded by Cano, •tb>adopt a variant of Version #1 of the City of L a''Mesa,.fCarried by thefollowing vote, to -wit: Ayes: Cano Mendivil, Morn son Nays: RiosS'otelo-Solis. Abstain: None. A sent ,None. POLITICAL SUPPORT ADMIN = INITIATJVES (102 04.1) 27, City Council Discussion andgDirectionff Assembly Bill (AB) 805 - County Transp of San DiegQ ortation Agencies (Gonzalez -Fletcher), (City Manager) RECOMMENDATION Staff recortends the ,City Council direct the City Manager t draft a setter expressing the City Council's concerns and opposition to AssembJV Bill 805, as currently drafted. TESTIMONY;fir Aid e> Castthitga representing Assemblywoman Lorena Gonzalez -Fletcher read. a letter from the Assemblywoman urging supportxfor her bill, AB>805. Carolina.Martinez:srepresenting the Environmental Health Coalition, spoke in si pport ofABB805. 1/ictoria Bari'a. Soutii'-Bay Democratic Club, read a letter of support 'frAB 805. ' Alio5,,.Sancligi National City, spoke in support of AB 805. Carolina Ranguez-Adjunta, representing the Climate Action Campaign :spoke in support of AB 805. Trevor Sepulvida, spoke against the staff recommendation. Lawrence Emerson, National City, requested delaying action and working to make AB 805 better. Micah Mitrosky, representing IBEW 569, requested postponing action and not opposing AB 805. Jose Rodriguez, National City, spoke in support of AB 805 and opposition to staff recommendation. Randy VanVleck, San Diego, supports AB 805. Andrew Mckercher, National City, spoke in support of AB 805 and delaying action on the staff recommendation. 29 of 297 Book 991 Page 64 04-04-2017 NEW BUSINESS (cont.) POLITICAL SUPPORT ADMIN - INITIATIVES (102-04-1) 27. ACTION (cont.): Motion by Sotelo-Solis, seconded by Rios, to postpone taking a vote until some of the questions raised can be addressed. Substitute motion by Morrison, seconded by Cano, to direct the City Manager to send a letter opposing AB 805 as written unless amended in the areas of voting and leadership positions. Substitute Motion Carried by the following vote, ti * it: Ayes: Cano, Mendivil, Morrison. Nays: Sotelo-Solis. Abstairaeos. Absent: None. COMMUNITY DEVELOPMENTCOMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY PUBLIC HEARINGS — HOUSING AUTHORITY, HOUSING AUTHORITY 2017 (404-1-6) 28. Public Hearing — Community Development C6`rimission - Housing Authority of the City of National'= ityx;(HACNC), Streamlined Annual Plan for Public Housing Agency (PHA) Piano for .Fiscal Year42017-2018, and authorizing submittal of the Plan to >;the StDeparture to of Housing and Urban Development (HUD). (Housing,& Economic,Devefo#ment) RECOMMENDATION: Conduct the Pu` `.lio" aring '' TESTIMONY Zone. ,�_- '-° ACTION: Motionby Sotelo-Solis, seconded by Mendivil, to close the Public HearingtCarried byyunanimous vote. i ..tY k:.l / Y i..sS., 3. S,�-' dr a si. NONCO6'1SENTN.RESOLUTIONS — 6 ( SGNG AUTHORITY HOUSING AUTHORI'U'C;12017 (404-1-6) 29. Resal,ution No. 2017-46 0 RESOLUTION OF THE COMMUNITY DEVELOPMENT Ca tylmis ION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY (HACNC), APPROVING THE STREAMLINED ANNUAL$PJBLICgOUSING AGENCY (PHA) PLAN FOR FISCAL YEAR 2017-2018,'ANDAOTHORIZING SUBMITTAL OF THE PLAN TO THE U.S. DEPARTMENT;U HOUSING AND URBAN DEVELOPMENT (HUD). (Housing & Economic Development) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None. ACTION: Motion by Mendivil, seconded by Cano, to adopt the Resolution. Carried by unanimous vote. 30 of 297 g Book 99f Page65 04-04-2017 NON CONSENT RESOLUTIONS — HOUSING AUTHORITY (cont.) HOUSING AUTHORITY 2017 (404-1-6) 30. Resolution No. 2017-50. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY (HACNC), APPROVING THE REVISIONS TO THE HOUSING CHOICE VOUCHER PROGRAM'S ADMINISTRATIVE PLAN, AND AUTHORIZING SUBMITTAL OF THE PLAN TO THE U.S. DEPARTMENT OF HOUSING AND URBAkDEVELOPMENT (HUD). (Housing & Economic Development) RECOMMENDATION: Adopt the Resolutio TESTIMONY: None. STAFF REPORTS ACTION: Motion by Sotelo-Solis; secon ed by Mendivil, to adopt the Resolution. Carried by una ous vote. , £' City Manager Leslie Deese reported that ,35 applications fortiles have been received for the Veterans Wall of Honor . 4 �_.. MAYOR AND CITY COUNCIL' Student Council RepresentativeVosw,. qada provided an update on the various briefings he has had and will be having With, departments and staff; extended an invitation to Swee'twater's Cultural Fes 0n4 April 7U1 and extended birthday wished to Sweetwater teacher Ms LauraCharles ort r 70th Birthday. ka City Treasurer Mitc Aeauch,afrip sharedths concerns about the Plaza and Palm Avenue ,,cons ruction project, i,traff c., circulat on issues with "M" Avenue and the potentialdisruptron from#Assembly Bil1;;.805 ^V, k�� ' Vice Mayor Mendivil raised.Fthe recent community beautification event at the Ntkformerkl & M Goodies°site, ,,,, r ,,A.,,'', • Member Sotelo-Solis shared her family's fun experience at the H & M Goodies event; expressed her disappointment with the outcome of !tem No. 27 and invited people to participa e;in the4SUHI Alumni ball game. Member Rios informed everyone that the Philips family has requested donations be made to Relay for Life in lieu of flowers for Verna Phillips. CLOSED SESSION REPORT Interim City Attorney George Eiser stated there was nothing to report from the Closed Session. (See attached Exhibit I') 31 of 297 Book 991 Page 65a 04-04-2017 ADJOURNMENT The meeting was adjourned in honor of Verna Phillips and Rosie Hamlin. Motion by Sotelo-Solis, seconded by Cano, to adjourn the meeting to the next Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City — Budget Workshop to be held Tuesday, April 18, 2017 at 6:00 p.m. at the Council Chambers, National City, California. Carried by unanimous vote. The meeting closed at 9:58. The foregoing minutes were approved .e Regular �, eeting of December 5, 2017, Mayor BUDGET SCHEDULE - FISCAL YEAR 2018 Budget Workshop - April 25, 2017 - 4:00 p.m. Budget Hearing - June 6, 2017 - 6:00 p.m. CITY COUNCIL SUMMER LEGISLATIVE RECESS July 4, 2017 - City Council Meeting - Dispensed With July 18, 2017 - City Council Meeting - Dispensed With 32 of 297 J0 EXHIBIT }NAMONAkeirir ;7 JACAgp6R AT�D AGENDA OF A SPECIAL MEETING CITY COUNCIL OF THE CITY OF NATIONAL CITY Main Conference Room Civic Center ' 1243 National City Boulevard National City, California Special Meeting - Tuesday, April 4, 2017 — 5:00 p.m. ROLL CALL CLOSED SESSION 1. Public Employee Aboointmen( Employee Title: City Attom Government Code e tion 5 2. Conference;:withLecai Co nsel — ,Significant Expo, to Lttiatioon potion 54956.9 'a£ CITY COUNCIL Exlst[1gt ltiga�lon under'Paragraph (1) of Subdivision (e) of Government Code AY CY' ' otential Case ADJOURNM Next Regular City oki,I Met�ng': Tuesday, April 4, 2017Q Q4p fit., Council Chambers, Civic Center 33 of 297 Book 99 / Page 37 02-28-2017 DRAFT DRAFT DRAFT MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY FISCAL YEAR 2018 BUDGET WORKSHOP February 28, 2017 The Adjourned Regular Meeting of the City Council' ar d Community Development Commission — Housing Authority of the City of Na o,nal City was called to order at 4:05 p.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council / Board members present: Cano (4'09`pm), Mendivil, Morr son, Rios, Satelo-Solis (4:09 pm). Administrative Officials present: Dalla, DeeseEise,Manganiello Parra, Raulston, Roberts, Rodriguez, Stevenson, Vergara, William #Ybarra. PLEDGE OF ALLEGIANCE TO T . EFLAG INTRODUCTION r,,« r .x c w4 t t�a4a Soh dC+ 4 City Manager LeslieQ esd b . an overy,i. w the lorkshop which is intended to focus on major financia� d capita ;.;issues. F .an.cral data`will address long-term pension liability and other pos O .ploym benefits�OgEB). Engineering data will support capital needs assess ent. F nd g o o -vi ill be cox sidered for both. City Mr Deese "'a i at this` et in the budge Budget in' •riI with reco PRESENTATI41 Staff Presentationsw,ere madeon the below listed topics: formal reczunendation is needed from the City Council ext stepill be to present the proposed Preliminary • Proposed 2017=0 ategic Plan Staff Presenter: Deppty City Manager, Brad Raulston • Long -Term Pension Liability Staff Presenter: Finance Director,Mark Roberts • CALPERS Actuarials and Associated Issues Staff Presenter: Mary Beth Redding, VP Bartel Associates • Capital Needs Assessment Staff Presenter: City Engineer/Public Works Director, Steve Manganiello • Funding Sources and Options Staff Presenter: Financial Advisor Craig Hill, NHS Associates NOTE: All presentation materials are attached as Exhibit "A". 34 of 297 /2 Book 99 Page 38 02-28-20 1 7 PUBLIC COMMENT Roberto Garcia, National City, repeated the concerns he expressed at the last workshop regarding the pension issue, addressing the deficit by increasing revenues and bringing in more businesses and including funding for training for city boards and commissions. ADJOURNMENT Motion by Mendivil, seconded by Sotelo-Solis to adjourn the meeting to the next Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City to be held Tuesday'March 7, 2017 at 6:00 p.m. at the Council Chambers, National City, California. Carried,by unanimous vote. The meeting closed at 6:12 p.m. F.:• City Clerk The foregoing minutes were approved at the Regular Meeting of December 5, 2017. Mayor 35 of 297 Book 99 I Page 77 04-25-2017 DRAFT DRAFT DRAFT MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY FISCAL YEAR 2018 BUDGET WORKSHOP April 25, 2017 The Adjourned Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City was called to order at 4:05 p.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council / Board members present: Cano, Mendivil, Morrison, Rios. Council / Board members absent: Sotelo-Solis. Administrative Officials present: Dalia, Deese, Denham, Duong, Manganiello, Parra, Pedone, Raulston, Roberts, Rodriguez, Stevenson, Vergara, Williams, Ybarra. PLEDGE OF ALLEGIANCE TO THE FLAG INTRODUCTION City Manager, Leslie Deese, made the following introductory statement: "I am pleased to present to the City Council a balanced city budget. Through the General Fund this was achieved with use of a $3.8 million dollars of un-assigned fund balance. The proposed budget recommends continuance of essential services and programs to our community, facility and fleet upgrades, Capital Improvement Projects, and contractually obligated salary and benefits to our employees. It also recommends that the City Council consider pre -funding employee pension and retirees health care obligations and continues our partnerships with our regional partners. The proposed budget does not include new staffing. It is critical that we maintain a conservative budget position until new revenue streams are identified. We are working with developers and businesses to bring current proposals to fruition as well as identifying new opportunities to further enhance our revenue stream. While the proposed budget attempts to provide something for everyone, it does not provide all that is needed or all that has been requested by departments. We are all doing more with less." PRESENTATIONS Staff Presentations were made by Assistant City Manager Stacey Stevenson, Finance Director Mark Roberts, Budget Analyst Ed Prendell, and City Engineer Steve Manganiello, on the below listed topics: • General Fud Budget Summary • Total Budget Summary • Significant Budgetary Impacts • Other Potential Impacts • Capital Improvement Program NOTE: All presentation materials are attached as Exhibit "A". 36 of 297 Book 99 / Page 78 04-25-2017 PUBLIC COMMENTS - None CITY COUNCIL COMMENTS AND DIRECTION Councilmember Sotelo-Solis, requested that the following written comments be read into the record in her absence: "I am in support of the following for the budget for the Fiscal year of 2018: 1) Incorporation of the hiring freeze of the four positions; 2) Creation of a pension trust, to help offset costs for pension spike; 3) Budgeting for our aquatic center at $181,000, recognizing that we can potentially gain revenues for fee for services; 4) Using unassigned fund balance at $4.7 million dollars; 5) Continuing to support Economic Development projects, the City's fee study, and housing revenues for future forecasting." There was discussion on the issue of pre -funding pension benefits, funding of $181,000 for the Aquatic Center and elimination of four vacant staff positions from the budget. The consensus was to return with a fact sheet on the pros and cons of pre -funding for pensions and retiree health benefits and to omit a specific funding amount for the Aquatic Center until later in the process. There was no vote. Motion by Cano, seconded by Mendivil, to reinstate the deleted positon in the Mayor's Office. Motion carried by the following vote, to -wit: Ayes: Cano, Mendivil, Morrison. Nays: Rios. Abstain: None. Absent: Sotelo-Solis. ADJOURNMENT Motion by Mendivil, seconded by Cano, to adjourn the meeting to the next Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City to be held Tuesday, May 2, 2017 at 6:00 p.m, at the Council Chambers, National City, California. Carried by the following vote, to -wit: Ayes: Cano, Mendivil, Morrison, Rios. Nays: None. Abstain: None. Absent: Sotelo-Solis. The meeting closed at 6:21 p.m. City Clerk The foregoing minutes were approved at the Regular Meeting of December 5, 2017. Mayor 37 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 38 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City, 1) authorizing the Mayor to execute a two-year Agreement with Geosyntec Consultants, Inc. for a not -to -exceed amount of $500,000 to provide on -call project support services for National City's C 38 of 297 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 5, 2017 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City, 1) authorizing the Mayor to execute a two-year Agreement with Geosyntec Consultants, Inc. for a not -to -exceed amount of $500,000 to provide on -call project support services for National City's Capital Improvement Program (C]P), including, but not limited to, environmental engineering, site assessments, characterization and remediation, groundwater monitoring and reporting, and preparation of environmental studies in accordance with the National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA); and 2) authorizing the City Manager to execute any project -specific supplemental agreements, as may be required for grant funded projects. PREPARED BY Stephen Mang a niello PHONE: 619-336-4382 EXPLANATION: See attached. FINANCIAL STATEMENT: ACCOUNT NO. DEPARTMENT: EngineerinaiPublic Works APPROVED BY: APPROVED: APPROVED: Finance MIS Funds are appropriated in various GiP accounts for FY 2018; funding for subsequent fiscal years is dependent on future CIP appropriations as part of annual budget and/or future grant awards. ENVIRONMENTAL REVIEW: NIA ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt Resolution executing an Agreement with Geosyntec Consultants, Inc. for a not -to -exceed amount of $500,000 to provide on -call project support services for National City's CIP. BOARD 1 COMMISSION RECOMMENDATION: NIA ATTACHMENTS: 1. Explanation 2. Agreement 3. Resolution I3y Ul cyi Explanation: National City's Capital Improvement Program (CIP) estimates approximately $80 million in capital needs over the next five years. Approximately $67 million (or 84%) is available through traditional funding sources and existing grant awards. The City will need to explore alternative funding options and continue to aggressively pursue competitive grant opportunities to fund the remaining, approximately $13 million in capital needs. Projects include, for example, corridor enhancements for traffic calming, pedestrian / bicycle safety (including Americans with Disabilities Act compliance) and smart growth redevelopment; road diets and complete streets; safe routes to school; traffic signal modifications; new street lights; sewer replacement and upsizing; storm drain improvements and implementation of Low -Impact Development (LID) measures for treatment of urban storm water runoff; drought tolerant landscaping; park amenities; and energy efficiency upgrades to City -owned buildings. In order to successfully design, manage and construct these projects, the Engineering & Public Works Department advertised a Request for Qualifications (RFQ) for various engineering, architectural and construction support services on February 2, 2017. Additional services requested via the RFQ include, for example, plan and map reviews, preparation of plan and legal descriptions, sewer system management and financial administration, and environmental compliance involving storm water, wastewater and hazardous materials. The RFQ was advertised on the City's website, published in the San Diego Union Tribune, and e-mailed to over 100 professional consulting firms. The Department received 51 Statement of Qualifications (SOQs) from various firms by the March 6, 2017 deadline. Copies of the SOQs received are available in the Office of the City Engineer. Based on the strength of their SOQ, interview and past performance, staff recommends executing a two-year Agreement (with the option to extend for one additional year) with Geosyntec Consultants, Inc. for a not -to -exceed amount of $500,000 to provide on -call project support services for National City's CIP, including, but not limited to, environmental engineering, site assessments, characterization and remediation, groundwater monitoring and reporting, and preparation of environmental studies in accordance with the National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA)_ See Exhibit "A" for general scope of work and Exhibit "B" for schedule of fees (to remain fixed throughout the term of the Agreement). Services will be provided "as -needed" based on available funding and capital priorities. In addition, staff recommends authorizing the City Manager to execute any project - specific supplemental agreements, as may be required for grant funded projects. These supplemental agreements would reference the terms and conditions of the attached master on -call Agreement, while incorporating additional project -specific grant requirements for use of consultant support services. Authorization to accept and appropriate grant funds, and execute grant agreements with the awarding agency (e.g. Caitrans, SANDAL, etc.) would still require separate City Council action. 40 of 297 AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL. CITY AND GEOSYNTEC CONSULTANTS, INC. THIS AGREEMENT is entered into on this 5th day of December, 2017, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"). and GEOSYNTEC CONSULTANTS, INC., a corporation (the "CONSULTANT"). RECITALS WHEREAS, the CITY desires to employ a CONSULTANT to provide on -call project support services for National City's Capital Improvement Program (CIP). WHEREAS, on February 2, 2017, the Engineering & Public Works Department advertised a Request for Qualifications (RFQ) for on -call project support services for National City's CIP; WHEREAS, on March 6, 2017, the CONSULTANT submitted a Statement of Qualifications (SOQ) in response to the RFQ, consistent with the requirements of the RFQ; WHEREAS, the CITY has determined that the CONSULTANT is an environmental engineering, planning and design firm; and WHEREAS, based on evaluation of the CONSULTANT'S SOQ and interview, the CITY has determined that the CONSULTANT is qualified by experience and ability to perform the services desired by the CITY, and the CONSULTANT is willing to perform such services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF CONSULTANT. The CITY agrees to engage the CONSULTANT to provide on -call project support services for National City's Capital Improvement Program (CIP), and the CONSULTANT agrees to perform the services set forth here in accordance with all terms and conditions contained herein. The CONSULTANT represents that all services shall be performed directly by the CONSULTANT or under direct supervision of the CONSULTANT. 2. EFFECTIVE DATE AND LENGTH OF AGREEMENT. This Agreement will become effective on December 5, 2017. The duration of this Agreement is for the period of December 5, 2017 through December 4, 2019. This Agreement may be extended by mutual agreement upon the same terms and conditions for an additional one (1) year term. Any extension of this Agreement must be approved in writing by the City Council. 41 of 297 3. SCOPE OF SERVICES. The CONSULTANT will perform services as set forth in the attached Exhibit "A", including, but not limited to: environmental engineering, site assessments, characterization and remediation, groundwater monitoring and reporting, and preparation of environmental studies in accordance with the National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA). The CONSULTANT will be expected to submit proposals for individual task orders in a timely manner, consistent with the general scope of services in Exhibit "A". Task order proposals shall include a detailed scope of work, schedule of deliverables and "not -to - exceed" cost estimate. The Project Coordinator will issue a Notice to Proceed upon approval of each individual task order. After issuance of a Notice to Proceed for each individual task order, the CONSULTANT will only receive compensation for actual work performed, on a time and materials basis, consistent with the detailed scope of work and within the limits of the "not -to - exceed" cost estimate. The CONSULTANT shall be responsible for all research and reviews related to the work and shall not rely on personnel of the CITY for such services, except as authorized in. advance by the CITY. The CITY may unilaterally, or upon request from the CONSULTANT, from time to time reduce or increase the Scope of Services to be performed by the CONSULTANT under this Agreement. Upon doing so, the CITY and the CONSULTANT agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction or increase in the compensation associated with said change in services. 4. PROJECT COORDINATION AND SUPERVISION. Stephen Manganiello, Director of Public Works/City Engineer, hereby is designated as the Project Coordinator for the CITY and will monitor the progress and execution of this Agreement. The CONSULTANT shall assign a single Project Director to provide supervision and have overall responsibility for the progress and execution of this Agreement for the CONSULTANT. Veryl Wittig, PG, thereby is designated as the Project Director for the CONSULTANT. 5. COMPENSATION ANI) PAYMENT. The compensation for the CONSULTANT shall be based on monthly billings covering actual work performed. Billings shall include labor classifications, respective rates, hours worked and also materials, if any. The total cost for all work described in Exhibit "A" shall not exceed $500,000. The compensation for the CONS TLT NT'S work shall not exceed the rates set forth in Exhibit "P,". The CITY will not accept CONSULTANT "mark-ups" for services provided by SUBCONSULTANTS. Monthly invoices will be processed for payment and remitted within thirty (30) days from receipt of invoice, provided that work is accomplished consistent with the general scope of services in Exhibit "A", and the detailed scope of work and schedule of deliverables provided for individual task orders, as determined by the Project Coordinator. The CONSULTANT shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred, and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CITY, and for furnishing of copies to the CITY, if requested. Standard Agreement Page 2 of 11 Revised July 2017 Geosyntec Consultants City of National City and 42 of 297 b. ACCEPTABILITY OF WORK. The CITY shall decide any and all questions which may arise as to the quality or acceptability of the services performed and the manner of performance, the acceptable completion of this Agreement, and the amount 2f compensation due. In the event the CONSULTANT and the CITY cannot agree to the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONSULTANT in this Agreement, the CITY or the CONSULTANT shall give to the other written notice. Within ten (10) business days, the CONSULTANT and the CITY shall each prepare a report which supports their position and file the same with the other party. The CITY shall, with reasonable diligence, determine the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONSULTANT. 7. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda, Reports, Maps, Drawings, Plans, Specifications, and other documents prepared by the CONSULTANT for this project, whether paper or electronic, shall become the property of the CITY for use with respect to this project, and shall be turned over to the CITY upon completion of the project, or any phase thereof, as contemplated by this Agreement. Contemporaneously with the transfer of documents, the CONSULTANT hereby assigns to the CITY, and CONSULTANT thereby expressly waives and disclaims any copyright in, and the right to reproduce, all written material, drawings, plans, specifications, or other work prepared under this Agreement, except upon the CITY'S prior authorization regarding reproduction, which authorization shall not be unreasonably withheld. The CONSULTANT shall, upon request of the CITY, execute any further document(s) necessary to further effectuate this waiver and disclaimer. The CONSULTANT agrees that the CITY may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium, or method utilize the CONSULTANT'S written work product for the CITY'S purposes, and the CONSULTANT expressly waives and disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to intellectual property and artistic works. Any modification or reuse by the CITY of documents; drawings, or specifications prepared by the CONSULTANT shall relieve the CONSULTANT from liability under Section 14, but only with respect to the effect of the modification or reuse by the CITY, or for any liability to the CITY should the documents be used by the CITY for some project other than what was expressly agreed upon within the Scope of Services of this project, unless otherwise mutually agreed. 8. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners, or joint venturers with one another. Neither the CONSULTANT nor the CONSULTANT'S employees are employees of the CITY, and are not entitled to any of the rights, benefits, or privileges of the CITY'S employees, including but not limited to retirement, medical, unemploy- ment, or workers' compensation insurance. This Agreement contemplates the personal services of the CONSULTANT and the CONSULTANT'S employees, and it is recognized by the parties that a subctantzal inducement to the CITY for entering into this Agreement was, and is, the professional reputation and competence of the CONSULTANT and its employees. Neither this Agreement nor any interest herein may be assigned by the CONSULTANT without the prior written consent of the Standard Agreement Page 3 of 11 Revised July 2017 Geosyntec Consultants City of National City and 43 of 297 CITY. Nothing herein contained is intended to prevent the CONSULTANT from employing or hiring as many employees, or SUBCONSULTANTS, as the CONSULTANT may deem necessary for the proper and efficient performance of this Agreement. All agreements by CONSULTANT with its SUBCONSULTANT(S) shall require the SUBCONSULTANT(S) to adhere to the applicable terms of this Agreement. 9. CONTROL. Neither the CITY nor its officers, agents, or employees shall have any control over the conduct of the CONSULTANT or any of the CONSULTANT'S employees, except as herein set forth, and the CONSULTANT or the CONSULTANT'S agents, servants, or employees are not in any manner agents, servants, or employees of the CITY, it being understood that the CONSULTANT its agents, servants, and employees are as to the CITY wholly independent CONSULTANT, and that the CONSULTANT'S obligations to the CITY are solely such as are prescribed by this Agreement. 10. COMPLIANCE WITH APPLICABLE LAW. The CONSULTANT, in the performance of the services to be provided herein, shall comply with all applicable state and federal statutes and regulations, and all applicable ordinances, rules, and regulations of the City of National City, whether now in force or subsequently enacted. The CONSULTANT and each of its SUBCONSULTANT(S), shall obtain and maintain a current City of National City business license prior to and during performance of any work pursuant to this Agreement. 11. LICENSES, PERMITS, ETC. The CONSULTANT represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. The CONSULTANT represents and covenants that the CONSULTANT shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, or approval which is legally required for the CONSULTANT to practice its profession. 12. STANDARD OF CARE. A. The CONSULTANT, in performing any services under this Agreement, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the CONSULTANT'S trade or profession currently practicing under similar conditions and in similar locations. The CONSULTANT shall take all special precautions necessary to protect the CONSU T AN T' S employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site. B. Unless disclosed in writing prior to the date of this Agreement, the CONSULTANT warrants to the CITY that it is not now, nor has it for the five (5) years preceding, been debarred by a governmental agency or involved in debarment, arbitration or litigation proceedings concerning the CONSULTANT'S professional performance or the furnishing of materials or services relating thereto. C. The CONSULTANT is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the project the CONSULTANT has been retained to pe_rfo_rrn, within the time requirements of the CITY, or, when no time is specified, then within a commercially reasonable tirrie. Accordingly, unless the CONSULTANT has notified the CITY otherwise, the CONSULTANT warrants that all products, materials, processes or treatments identified in the project documents prepared for the CITY are reasonably commercially ially available. Any failure by the CONSULTANT to use due Standard Agreement Page 4 of 11 City of National City and Revised July 2017 Geosyntec Consultants 44 of 297 diligence under this sub -section will render the CONSULTANT liable to th. CITY for any increased costs that result from the CITY'S later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable tim. 13. NON-DISCRIMINATION PROVISIONS. The CONSULTANT shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONSULTANT will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Suc; l action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONSULTANT agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause. 14. CONFIDENTIAL INFORMATION. The CITY may from time to time communicate to the CONSULTANT certain confidential information to enable the CONSULTANT to effectively perform the services to be provided herein. The CONSULTANT shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CITY. The CONSULTANT shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services to be provided herein. The foregoing obligation of this Section 14, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the CONSULTANT, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONSULTANT without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONSULTANT by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. The CONSULTANT shall not disclose any reports, recommendations, [conclusions or other ree,ui i e 7 e tmcc t subject .,� 3e.^J.;,C3 :,r �:�:. 8ri.i3�Gr.aw of wlc matte" of this Agreement without the prior written consent of the CITY. In its performance hereunder, the CONSULTANT shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. CONSULTANT shall be liable to CITY for any damages caused by breach of this condition, pursuant to the provisions of Section 15. 15. INDEMNIFICATION AND HOLD IIARMLESS. The CONSULTANT agrees to defend, indemnify, and hold harmless the City of National City, its officers, officials, agents, employees, and volunteers against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONSULTANT'S negligent performance of this Agreement. CITY will cooperate reasonably in Standard Agreement Page 5 of 11 Revised July 2017 Geosyntec Consultants City of National City and 45 of 297 the defense of any action, and CONSULTANT shall employ competent counsel, reasonably acceptable to the City Attorney. The indemnity, defense and hold harmless obligations contained herein shall survive the termination of this Agreement for any alleged or actual omission, act, or negligence under this Agreement that occurred during the term of this Agreement. 16. WORKERS' COMPENSATION. The CONSULTANT shall comply with. all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California. Labor Code and all amendments thereto; and all similar State or federal acts or laws applicable; and shall indemnify, and hold harmless the CITY and its officers, employees, and volunteers from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description, including reasonable attorney's fees and defense costs presented, brought or recovered against the CITY or its officers, employees, or volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the CONSULTANT under this Agreement. 17. INSURANCE. The CONSULTANT, at its sole cost and expense, shall purchase and maintain, and shall require its SUBCONSULTANT(S), when applicable, to purchase and maintain throughout the term of this Agreement, the following insurance policies: A. 1 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, employees, and volunteers as additional insureds, and a separate additional insured endorsement shall be provided. C. Commercial General Liability Insurance, with minimum limits of either $2,000,000 per occurrence and $4,000,000 aggregate, or $1,000,000 per occurrence and $2,000,000 aggregate with a $2,000,000 umbrella policy, covering all bodily injury and property damage arising out of its operations, work, or performance under this Agreement. The policy shall name the CITY and its officers, agents, employees, and volunteers as additional insureds, and a separate additional insured endorsement shall be provided. The general aggregate limit must apply solely to this "project" or "location". The "project" or "location" should be noted with specificity on an endorsement that shall be incorporated into the policy. D. Workers' Compensation Insurance in an amount sufficient to meet statutory requirements covering all of CONSULTANT'S employees and employers' liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the CITY. Said endorsement shall be provided prior to commencement of work under this Agreement. If CONSULTANT has no employees subject to the California Workers' Compensation and Labor laws, CONSULTANT shall execute a Declaration to that effect. Said Declaration shall be provided to CONSULTANT by CITY. E. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, officials, employees, and volunteers, so that any other policies held by the CITY Standard Agreement Page 6 of 11 Revised July 2017 Geosyntec Consultants City of National City and 46 of 297 shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) clays prior written notice to the CITY' s Risk Manager, at the address listed in subsection G below, of cancellation. F. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the CONSULTANT shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date must be on or before the date of this Agreement. G. The Certificate Holder for all policies of insurance required by this Section shall be: City of National City c/o Risk Manager 1243 National City Boulevard National City, CA 91950-4397 H. Insurance shall be written with only insurers authorized to conduct business in California that hold a current policy holder's alphabetic and financial size category rating of not less than A:VII according to the e current Best's Key Rating Guide, or a company of equal financial stability that is approved by the CITY'S Risk Manager. In the event coverage is provided by non -admitted "surplus lines" carriers, they must be included on the most recent California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements. L This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY'S Risk Manager. If the CONSULTANT does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CITY may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. J. All deductibles and self -insured retentions in excess of $10,000 must be disclosed to and approved by the CITY. K. If the CONSULTANT maintains broader coverage or higher limits (or both) than the minimum limits shown above, the CITY requires and shall be entitled to the broader coverage or higher limits (or both) maintained by the CONSULTANT. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY. 18. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out -of - court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys' fees. For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorney's fees to the prevailing party if otl,Fr than the CITY shall, in addition, be limited to the amount of oracy's Standard Agreement Page 7 of 11 Revised July 2017 Geosyntec Consultants City of National City and 47 of 297 fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual amount of attorney's fees incurred by the prevailing party. 19. TERMINATION. A. This Agreement may be terminated with or without cause by the CITY. Termination without cause shall be effective only upon 60-day's written notice to the CONSULTANT. During said 60-day period the CONSULTANT shall perform al] services in accordance with this Agreement. B. This Agreement may also be terminated immediately by the CITY for cause in the event of a material breach of this Agreement, misrepresentation by the CONSULTANT in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the CITY. C. Termination with or without cause shall be effected by delivery of written Notice of Termination to the CONSULTANT as provided for herein. D. In the event of termination, all fmished or unfinished Memoranda Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONSULTANT, whether paper or electronic, shall immediately become the property of and be delivered to the CITY, and the CONSULTANT shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CITY by the CONSULTANT'S breach, if any. Thereafter, ownership of said written material shall vest in the CITY all rights set forth in Section 7. E. The CITY further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONSULTANT; (2) a reorganization of the CONSULTANT for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONSULTANT. 20. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, .i earlier .. f telecopy, facsimile or fax; and shall be deemed received' upon the earu�� .,� (i) 1L peISC7t1al'ly delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: Standard Agreement Page 8 of 11 Revised July 2017 Geosyntec Consultants City of National City and 48 of 297 To CITY: Stephen Manganiello Director of Public Works/City Engineer City of National City Engineering & Public Works Department 1243 National City Boulevard National City, CA 91950-4397 To CONSULTANT: Veryl Wittig, PG Project Director Geosyntec Consultants, Inc. 16644 West Bernardo Dr., Suite 301 San Diego, CA 92127 Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty-eight (48) hours by letter mailed or delivered as specified in this Section. 21. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this Agreement, the CONSULTANT shall not perform services of any kind for any person or entity whose interests conflict in any way with those of the City of National City. The CONSULTANT also agrees not to specify any product, treatment, process or material for the project in which the CONSULTANT has a material financial interest, either direct or indirect, without first notifying the CITY of that fact. The CONSULTANT shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The CONSULTANT shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the CITY in which the CONSULTANT has a financial interest as defined in Government Code Section 87103. The CONSULTANT represents that it has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the CITY. Cj If checked, the CONSULTANT shall comply with all of the reporting requirements of the Political Reform Act and the National City Conflict of Interest Code. Specifically, the CONSULTANT shall file a Statement of Economic Interests with the City Clerk of the City of National City in a timely manner on forms which the CONSULTANT shall obtain from the City Clerk. The CONSULTANT shall be strictly liable to the CITY for all damages, costs or expenses the CITY may suffer by virtue of any violation of this Section 21 by the CONSULTANT. 22. I"PEVA Brie WAGES. State prevailing wage rates may apply to work performed under this Agreement. State prevailing wages rates apply to all public works contracts as set forth in California Labor Code, including but not limited to, Sections 1720,1720.2, 1720.3, 1720.4, and. 1771_ Consultant is solely responsible to determine if State prevailing wage rates Standard Agreement Page 9 of 11 Revised July 2017 Geosyntec Consultants City of National City and 49 of 297 apply and, if applicable, pay such rates in accordance with all laws, ordinances, rules, and regulations. 23. MISCELLANEOUS PROVISIONS. A. Computation of Time Periods. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or federal, state, or legal holiday. B. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. C. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. D. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference for all purposes. To the extent any exhibits, schedules, or provisions thereof conflict or are inconsistent with the terms and conditions contained in this Agreement, the terms and conditions of this Agreement shall control. F. Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. G. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. H. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. I. Audit. If this Agreement exceeds ten -thousand dollars ($10,000), the parties shall be subject to the examination and audit of the State Auditor for a period of three (3) years after final payment under the Agreement, per Government Code Section 8546.7. J. Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. K. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. L. Subcontractors or Subconsultants. The CITY is engaging the services of the CONSULTANT identified in this Agreement. The CONSULTANT shall not subcontract any portion of the work, unless such subcontracting was part of the original proposal or is allowed by the CITY in writing. in the event any portion of the work under this Agreement is subcontracted, the subconsultant(s) shall be required to comply with and agree to, for the benefit of and in favor of the CI'iY, both the insurance provisions in Section 17 and the indemnification and hold harmles.g provision of Section 15 of this Agreement. Standard Agreement Page 10 of 11 Revised July 2017 Geosyntec Consultants City of National City and 50 of 297 M. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) each party and such party's counsel and advisors have reviewed this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CITY GEOSYNTEC CONSULTANTS, INC. By: Ron Morrison, Mayor APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney By: Roberto M. Contreras Deputy City Attorney By: By: Sam Williams Vice President ueiriy Sangre rat Executive Vice President Standard Agreement Page 11 of 11 City of National City and Revised July 2017 Geosyntec Consultants 51 of 297 ,EXHIBIT "A" Geosyntec consultants Stephen Manganiello, Director of Public Works/City Engineer City of National City Department of Engineering & Public Works 1243 National City Boulevard National City, CA 91950 166- 4 West Bernardo Dr., Suite 301 San Diego, California 92127 PH 858.674.6559 FAX 858.674.6586 W WW.aeosvntec,cotg 6 March 2017 Subject: Environmental CIP Support that Yields Expertise and Innova':on with the Added Benefit of Staff Continuity Statement of Qualifications for 0n Call Project Support Services for the City of National City Dear Mr. Manganiello: Re: In response to your Request for Qualifications (RFQ) referenced above, Geosyntec Consultants, Inc. (Geosyntec) is pleased to offer specialized professional services to the City of National City (the City) in the following discipline: Environmental Engineering, Planning and Design. Our Statement of Qualifications (SOQ), which fully conforms to your RFQ, describes Geosyntec's expertise, specific project experience in National City, quality of client service. local knowledge and industry leadership that we bring. We understand that direct and relevant experience such as ours, quality of service, and understanding of the unique technical challenges relevant to the City and the CIP are of paramount importance. Working with a consultant team that knows and understands the City and its environmental challenges stands to benefit the progress of CIP implementation. Toward that end, we look forward to continuing to work on behalf of National City by serving the needs of City staff through analysis of project challenges and implementation of innovative solutions. Geosyntec has reviewed, understands, and is uniquely qualified to implement the Environmental Engineering, Planning, & Der z cc pc of services described in the RFQ. We are confident that Geosyntec fuiiy meets and exceeds the City's selection criteria for performing Site Assessment and Characterization, Water Resources, CEQA/NEPA, and Remediation specialties. Geosyntec has been providing a comprehensive and cost-effective range of environmental engineering services to the City since 2007, and we have a strong track record managing and performing similar as -needed contracts for municipal agencies and public utilities in San Diego County and throughout Southern California. The depth and breadth of our locally -based experience will be valuable in continuing to provide exceptional service and responsiveness, and streamlining project execution and supporting City staff. We will staff this project out of our two fully self - supported offices in San Diego (Rancho Bernardo and a Central San Diego office) with our Central San Diego location serving as the project office. Geosyntec's San Diego operations are currently staffed with more than 65 professionals and technical support staff with specific expertise to serve the City's needs. Additionally, Rocks Biological Consulting and Tri-County Drilling, locally -based DBE - certified firms that specializes in environmental studies, augments the expert capabilities of the Geosyntec Team. engineers I scientists I innovators 52 of 297 Stephen Manganiello Page 2 Mr. Veryl Wittig, who has managed many local environmental programs including our contract with the Crry's former Community Development Commission (CDC) and Successor Agency, will serve as the Project Director and oversee this contract. Chris Lieder who has managed several key projects for National City will be your Project Manager responsible for project delivery with excellent schedule and budget control. Chris will continue to be supported by the same qualified :And experienced team of engineers, geologists, environmenta! specialists and support staff that has served the City since 2007. Geosyntec affirms that the staff comprising the Project Team will be available and dedicated to the City as needed; and there will be no substitutions of personnel without the approval of the City. We look forward to continuing to deliver environmental engineering excellence as your partner and consultant. Please contact us for any additional information. Sincerely, Veryl Wittig, PG, CI-IG Project Director VWittig@Geosyntec.com (858) 716-2903 engineers I scientists ! innovators Christopher Lieder, PG Project Manager CLieder@Geosvntec.com (858) 716-2914 53 of 297 esvntc° cons' iltarts STATEMENT OE QUALIFICATIONS {?�t Call Propect Sup pcurt Services National City's Capital Ilnpravenrient Program 2. EXECUTIVE SUMMARY The City of National City (the "City") seeks on -call multi -disciplinary professional services in support of its Capita! Improvement Program (CIP). Geosyntec is highly qualified, weil-suited, and eager to continue to support the City by delivering comprehensive and cost-effective environmental engineering services. Utilizing our expert resources in concert with our proven performance for the City over the past decade, Geosyntec will continue to deliver superior program outcomes over the two- year contract. We hereby express our strong interest in helping the City achieve environmental quality goals and comply with expanding regulatory requirements, and respectfully present our expert qualifications that meet/exceed City requirements. Geosyntec has more than 65 locally -based professionals and technical support staff to provide the City with expertise specifically related to Environmental Planning, Design & Eng•Oneering. These services include characterization and remediation of contaminated properties; groundwater monitoring and reporting; human and ecological risk assessments; environmental studies in accordance with the National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA); and water resources services including Stormwater Quality Management Plans (SWQMPs), Stormwater Pollution Prevention Plans (SWPPPs), Best Management Practices (BMPs) manuals, and Low Impact Development (LID). Geosyntec's proven pro ai`i i :e and in-depth working knowledge of the local environment assures excellent quality and responsive service to National City. MULThFA ETED STRENGTHS WILL SUPPORT NATIONAL CITY IN ENVIRONMENTAL PLANNING, DESIGN & ENGINEERING Geosyntec's key environmental planning, design and engineering strengths for this contract include: A Demonstrated understanding and familiarity with City needs, issues and procedures gained from ongoing work as your environmental consultant for the present contract period • Local presence and professional service from two offices in Rancho Bernardo and Mission Valley assures quick access to your sites by our project team members > Knowledge of subsurface and surface conditions throughout the City's jurisdiction, and thorough understanding of complex regional/local geologic and hydrogeologic conditions ➢ Proven local experience at 10 redeveiopment sites in National City > Expertise in environmental engineering capabilities that support CIP programs ➢ Successful as -needed contract execution ➢ Knowledge of upcoming regulatory changes > Environmental compliance expertise > Exemplarystormwatertechnical leadership on national and regional levels ➢ 100+ years of combined environmental consulting experience on pertinent local issues ➢ Knowledge of local, state and nationa! regulations, engineering standards, and guidance documents 2017 Geosvntec Consultants_ Inc. Au riohts rr servwd use nnly with permission. Page ! 1 54 of 297 Geosvntecf> 4'011iL1tt !t!q. STATEMENT OF QUALIFICATIONS {art -Call Project Support services National City's Capital linpr❑vern of Program SUCCESSFULLY SERVING AS CONSULTANT AND PARTNER TO THE 07 Geosyntec has been providing a comprehensive and cost-effective range of environmental engineering services to the City since 2007, and we look forward to continue serving the City over the next two years on an as -needed basis. At Geosyntec, we understand the business of city government and the daily demands of strict accountability, tight budgets and deadlines, and answering to a diverse range of customers - who are also constituents. We have served municipalities and various agencies throughout the United States since our founding in 1983, providing services in environmental consulting, natural resources management, engineering design and construction management. Our proven experience enables us to become an integral part of the City's team and to enable you to address today's challenges. Our dedicated National City Team of Geosyntec professionals investigate, design and implement practical, often innovative solutions that help meet management objectives as well as resolve site - specific technical challenges. Our team is committed to providing these project services on a timely basis, allowing the City to function uninterrupted as it serves residents and businesses. We can expedite a project to alleviate imminent concerns or, conversely, perform a project in phases to meet the annual limitations of a capital Improvement program. We can help identify funding mechanisms and secure grants to provide needed capital for projects. Geosyntec is accustomed to operating in accord with the contracting and reporting requirements of local governments, and we routinely help clients meet their management goals in areas such as minority or disadvantaged business utilization and local subcontracting. Our practitioners are also skilled in supporting community efforts. For example, we provide technical information to stakeholders and public interest groups in everyday language and host public meetings that promote understanding and teamwork. BUILDING ON CURRENT ANO PREVIOUS WORK IN NATIONAL CITY Geosyntec has significant experience providing engineering and environmental services in National City as shown on the map above. 2017 Geosvntec Consultants_ Inc All right reserved usP nnlywith rwrmission. Page 12 55 of 297 Go.t consliltulils STATEMENT 4:DrF QUAUFICATf0NS On a1V P.rr ject St; pperrl Services Natlaatiil Cety'S Capital Env roverntint Program STAFF QUALIFICATIONS ANO LICENSING Geosyntec offers the City a focused group of expert and experienced professional and technical staff with decades of specialized environmental and engineering experience in San Diego County. We offer the City staff continuity and a project team that will continue to provide quality, as -needed services as we have in support of City projects over the past 10 years. 0ur Project Director, Veryl Wittig, our Project Manager, Christopher Lieder, and key staff have the necessary licenses and certifications and direct and relevant experience managing and performing projects in National City. 0ur team organization, staffing plan and staff qualifications with licensing information are presented in Section 4. Detailed resumes for selected staff are presented in the Appendix. We are known for our innovative approaches, exceptional responsiveness, specialized experience, and superior program and project outcomes, 3. CONTACT INFORMATION' a. Legal Name and Address: GEOSYNTEC CONSULTANTS, INC. 900 Broken Sound Parkway NW, Suite 200, Boca Raton, FL 33487 b. Organization Structure: Corporation c. Addresses of Geosyntec offices working on the project 16644 West Bernardo Drive, Suite 301, San Diego, CA 92127 2355 Northside Drive, San Diego, CA 92108 d. Authorized Representative to respond to this proposal: Veryl Wittig, PG, CHG, Senior Principal and Project Director 16644 West Bernardo Drive, Suite 301 San Diego, CA 92127 Office: 858.674.6559; Mobile:, 619.884.6552; VWittig@Geosyntec.com Geosyntec is a highly respected, top-tter environmental Geosyntec If consulting and englneering firm that works with private and public sector clients to address complex problems involving the environment, natural resources, and civil infrastructure. Established in 1983 as an employee -owned firm, Geosyntec focuses on bringing value to clients through technical innovation and reliable project execution. Our practice is centered on projects involving environmental investigation and remediation; groundwater and natural resource assessment and restoration; and engineering and design for environmental, water resources and geotechnical infrastructure. Our two offices within the City of San Diego are staffed with more than 65 locally -laced professionals specializing in hydrogeology, hydrology, water resources, environmental and geotechnical engineering, data management and visualization, and construction management. eeeal ie us to be 2017 Geosyntec Consultants, !nc. All rights reserved, use only with permission. Page l 3 56 of 297 Geosynteco consul tants STATEWNT OF QUALIFICATIONS Oil: -Gill Project Support Services National City`s Capital Irriprcluettieot Program extremely responsive to the Ciity's needs. Outside San Diego, Geosyntec staff comprises over 1,200 engineers, scientists, and related support staff located in more than 80 offices throughout the U.S. and select international locations. Geosyntec is entirely employee -owned and operated, and is routinely recognized for technology leadership, exceptional client service and project excellence. 4. TEAM ORGANIZATION AND KEY PERSONNE{ Geosyntec will provide the best -in -class environmental services capabilities to Nationai City with a cohesive project team that has successfully completed environmental engineering projects on behalf of the City since 2007, and throughout San Diego County since we established our first local office in 1998. This expert team of more than 65 locally -based staff brings exceptional depth and range of experience. Our team leaders have more than 100 years of combined relevant experience; their exemplary qualifications and those of our project support staff are summarized on the following pages. Detailed resumes of selected key staff are presented in the Appendix. As Project Director, Veryl Wittig will continue to lead our team and be in charge of approving submittals and coordinating our work with the City and other agencies. He will work closely with our Task Managers for Site Assessment and Cha racterization, Remed iation, Water Resources, CEQA/NEPA, and our QA/QC Advisor. Veryl will utilize and manage technical resources within Geosyntec on an as -needed basis to execute the project objectives in the most effective and cost- efficient way. We will supplement additional technical staffing needs by drawing upon EowdriEurm5 fitet.te i xlc BEP RTIVENT PROJECT Dint gln:N Veryl lMlhg. PG, CHG. QS0 r*I?cl rr IUAIVAGER Geosyntect consultants @o4TA EVAtdJATION:+ CIA.' C SITE ASSESSMENT Doug Bauntwkt PG - Task Manager Matt Daniel Pelikan, PG Nick Godlnea, PG Jared Niamey. PG Reek ptogge ost Ruth Costars Cathy Villaroman M4arlertag_aixtgatnpliau David Skippon Stew Aadnes ;`9a 5 kDatebg Jennie,' Gordon Subcontractor Tn-County Dnlling (DBE) Devon Neap, PE, CFM, ENV SP - Task Manager Nay Stuff Courtney Wilson. PE CSC Venkat Gummed'. PE. CPESC. QSPli) Miguel Parames, PE. QSD Andrew McGann CPESC QSP Gerard Ellison CESSWI. QSP © 2017 Geosyntec Consultants, Inc. All rights reserved, use only with permission. Kathleen Harrison, PG. QSPJD - Task Manager Ku MO Tanta Curutta EIT CPESC. CPSWQ. OSP/D Maggie Mecormmck. Err Danielle Kerper, PG OSP/D. QISP 8ubriOc>traatar Boras Biological Consulting tDBE) tt-FA ChlAnokr Chad Bvd,PE- Task Manager kiatAtatf Ryan Gray PG Rebecca Oliver PE. OSPrt] Brian Rockwell. Grr 1ietlatt.. P. ilttt.Yoging SIREM C414:111,Sonatoto Mike Carson Jerry Amos 5ubcontractor NRC Environmental Services Page I y 57 of 297 it r STATEMENT OF auALII<FcATlohNS OA-Call Project Support Services I+Iationol City"s Capital improvement Program more than 1.40 regionally -based Geosyntec engineers, geo!ogists, env? ronmental scientists, technicians, and project support personnel. Geosyntec commits the project team as presented to National City for the duration of the contract, We understand no changes to the composition of the team will be allowed without written approval of the City. Our staffing plan with project roles and reporting relationships specific to the Scope of Services for Environmental Engineering is represented in the Team Organization Chart shown on the previous page. Cc) 2017 C;ensvntert Cnnsultants. Inn. All righte rxerved, use only with permission. PageI5 58 of 297 EXHIBIT "B" GEOSYNTEC CONSULTANTS RATE SCHEDULE FOR CITY OF NATIONAL CITY, DEPARTMENT OF PUBLIC WORKS (Updated 10 November 2017) Engineer/Scientist Rate/Hour Staff Professional $111 Senior Staff Professional $131 Professional $144 Project Professional $163 Senior Professional $184 Principal (formerly Associate) $206 Senior Principal (formerly Principal) $236 Field Services Engineering Technician $ 76 Senior Engineering Technician $ 86 Field Manager $ 92 Site Manager $ 97 Field Superintendent $ 103 Design, Graphical, and Administrative Services Senior Drafter/Senior CADD Operator $122 Drafter/CADD Operator/Artist $108 Adnnin Assistant/Tech Word Processor $ 66 Clerical $ 51 General Direct Expenses Subconsultant Services Subcontract Services Specialized Computer Applications (per hour) Personal Automobile (per mile) Cost plus 0% Cost plus 0% Cost plus 10% $ 10 Current IRS Rate Rates are provided on a confidential basis and are client and project specific. Unless otherwise agreed, these rates will remain in effect for the term of the Agreement (up to 3 years). Rates for field equipment, health and safety equipment, and graphical supplies presented upon request. Geosyn tec_CN C_Rates.2017 59 of 297 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A TWO-YEAR AGREEMENT WITH GEOSYNTEC CONSULTANTS, INC., FOR A TOTAL NOT -TO -EXCEED AMOUNT OF $500,000 TO PROVIDE ON -CALL PROJECT SUPPORT SERVICES FOR NATIONAL CITY'S CAPITAL IMPROVEMENT PROGRAM, INCLUDING, BUT NOT LIMITED TO, ENVIRONMENTAL ENGINEERING, SITE ASSESSMENTS, CHARACTERIZATION AND REMEDIATION, GROUNDWATER MONITORING AND REPORTING, AND PREPARATION OF ENVIRONMENTAL STUDIES IN ACCORDANCE WITH THE NATIONAL ENVIRONMENTAL POLICY ACT AND CALIFORNIA ENVIRONMENTAL QUALITY ACT; AND AUTHORIZING THE CITY MANAGER TO EXECUTE ANY PROJECT -SPECIFIC SUPPLEMENTAL AGREEMENTS, AS MAY BE REQUIRED FOR GRANT FUNDED PROJECTS WHEREAS, National City's Capital Improvement Program (CIP) estimates approximately $80 million in capital improvement projects needs over the next five years; and WHEREAS, to successfully design, manage, and construct these projects, the Engineering and Public Works Department issued a Request for Qualifications (RFQ) for various engineering, architectural, and construction support services; and WHEREAS, 51 responses to the Requests for Proposals were received and reviewed, taking into consideration, among other things, past performance history, knowledge of the environment, the type of services offered, and the cost to the City; and WHEREAS, based on the strength of their Statement of Qualifications (SOQ), interview and past performance, staff recommends executing a two-year Agreement with Geosyntec Consultants, Inc., for a not -to -exceed amount of $500,000 to provide on -call project support services for National City's CIP, including, but not limited to; environmental engineering, site assessments, characterization and remediation, groundwater monitoring and reporting, and preparation of environmental studies in accordance with the National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA); and WHEREAS, the Agreement includes an option to extend the term for one additional year; and WHEREAS, in addition, staff recommends authorizing the City Manager to execute any project -specific supplemental agreements, as may be required for grant funded projects. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the Mayor to execute a two-year Agreement with Geosyntec Consultants, Inc., for the total not to exceed amount of $500,000, with an option to extend the term for one additional year, to provide on -call project support services for National City's CIP, including, but not limited to, environmental engineering, site assessments, characterization and remediation, groundwater monitoring and reporting, and preparation of environmental studies in accordance with the National Environmental Policy Act (NEPA) and California Environmental Quality Act (CEQA). Said Agreement is on file in the office of the City Clerk. [Signature Page to Follow] 60 of 297 Resolution No. 2017 — Page Two PASSED and ADOPTED this 5th day of December, 2017. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ron Morrison, Mayor 61 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 62 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City approving and adopting the updated Multi - Jurisdictional Hazard Mitigation Plan, and authorizing the City Manager to implement said Plan. (Building/Fire) 62 of 297 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 5, 2017 AGENDA ITEM NO.: ITEM TITLE: Resolution of the City Council of the City of National City approving and adopting the updated Multi - Jurisdictional Hazard Mitigation Plan, and authorizing the City Manager to implement said Plan. (Building/Fire) PREPARED BY: Frank Parra, Director of Emergency Services DEPARTMENT: B PHONE: 619-336-4551 APPROVED BY: EXPLANATION: The Disaster Mitigation Act of 2000, signed into law on October 30, 2000 (Public Law 106-390) required all jurisdictions to have an approved hazard mitigation plan in place prior to November 1, 2004 in order to qualify for hazard mitigation program grants and post disaster mitigation funds. FEMA was charged with implementation of the Act. The law required the following related to natural disasters: 1) Identification and assessment of risks related to disasters 2) Implementation of adequate measures to reduce losses 3) Ensuring critical services and facilities will continue to function after the disaster. In June 2003, the County of San Diego Office of Emergency Services and their consultant, URS Corporation, began meetings with the City of National City and other jurisdictions to develop a Multi -Jurisdictional Hazard Mitigation Plan to comply with the federal law. The Plan is a pre -disaster strategic plan that serves as a guide to lowering the risk and exposure to natural disasters. The Plan was initially adopted with Resolution #2004 — 74. The law requires that the Plan be updated every 5 years, which it was updated and adopted with Resolution #2011 — 78. After reviewing the current capabilities of the City to lessen the impact of natural disasters, staff has updated specific goals, objectives, and action items applicable to National City. FINANCIAL STATEMENT: APPROVED: FINANCE ACCOUNT NO. APPROVED: MIS The implementation of National City's goals, objectives, and action items may be accomplished through the use of operating funds identified through the annual budgeting process. The remaining items may be accomplished with federal/state/local grants. ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION n FINAL ADOPTION STAFF RECOMMENDATION: Adopt the resolution. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. City of National City's Goals, Objectives, and Action Steps from the Plan 2. Resolution 63 of 297 SECTIONFIVE Goals, Objectives and Actions 5.13City of National City The City of National City (National City) reviewed a set of jurisdictional -level hazard maps including detailed critical facility information and localized potential hazard exposure/loss estimates to help identify the top hazards threatening their jurisdiction. In addition, Local Planning Groups (LPGs) were supplied with exposure/loss estimates for National City summarized in Table 5.13-1. See Section 4.0 for additional details. Table 5.13-1 Summary of Potential Hazard -Related Exposure/Loss in National City Residential Commercial Critical Facilities Hazard Type Exposed Population Number of Residential Buildings Potential Exposure/ Loss for Residential Buildings (x$1,000) Number of Commercial Buildings Potential Exposure/ Loss for Commercial Buildings (x$1,000) Number of Critical Facilities Potential Exposure for Critical Facilities (x$1,000) Coastal Storm / Erosion 0 0 0 0 0 0 0 Sea level Rise 1,276 0 0 64 22,534 15 12,787 Dam Failure 7,362 457 128,646 6,649 2,327,069 74 284,717 Earthquake (Annualized Loss - Includes shaking, Liquefaction and landslide components) 56,522* 15,776* 4,440,944* 892* 3,997,676* 0" 0` Flood (Loss) 100 Year 2,094 152 42,788 750 262,509 17 14,926 500 Year 4,801 915 257,573 3,297 1,153,905 62 63,798 Rain -Induced Landslide High Risk 0 0 0 0 0 0 0 Moderate Risk 6 2 563 0 0 1 339 Tsunami 1,306 0 0 5 22,409 5 60,384 Wildfire /Structure Fire Fire Regime II & IV 57,267 15,144 4,263,036 9,300 3,255,165 242 825,459 • Represents best available data atthis time. City of National City 64 of 297 5-163 SECTIONFIVE Goals, Objectives and Actions After reviewing the localized hazard maps and exposure/loss table above, the following were identified by the National City LPG as their top hazards: • Dam Failure/Floods: Sweetwater dam failure • Earthquakes: proximity to local faults (e.g. Rose Canyon Fault); older structures; potential for loss of life, injuries, and damage to property, as well as disruption of services is significant • Hazmat Release: three freeways (i.e. I-5, I-805, & SR-54) and railway pass through the City making it susceptible to hazardous spills, releases, or accidents; several industrial facilities in the City handle hazardous materials on a regular basis • Structure Fires: older structures • Tsunami: proximity to waterfront may affect maritime business industry 5.13.1 Capabilities Assessment The LPG identified current capabilities available for implementing hazard mitigation activities. The Capability Assessment (Assessment) portion of the jurisdictional mitigation plan identifies administrative, technical, legal and fiscal capabilities. This includes a summary of departments and their responsibilities associated to hazard mitigation planning as well as codes, ordinances, and plans already in place associated to hazard mitigation planning. The second part of the Assessment provides National City's fiscal capabilities that may be applicable to providing financial resources to implement identified mitigation action items. 5.13.2 Existing Institutions, Plans, Policies and Ordinances The following is a summary of existing departments in National City and their responsibilities related to hazard mitigation planning and implementation, as well as existing planning documents and regulations related to mitigation efforts within the community. The administrative and technical capabilities of National City, as shown in Table 5.13-2, provides an identification of the staff, personnel, and department resources available to implement the actions identified in the mitigation section of the Plan. Specific resources reviewed include those involving technical personnel such as planners/engineers with knowledge of land development and land management practices, engineers trained in construction practices related to building and infrastructure, planners and engineers with an understanding of natural or manmade hazards, floodplain managers, surveyors, personnel with GIS skills and scientists familiar with hazards in the community. • City of National City Fire Department Fire Prevention Emergency Rescue and Response Fire Suppression Code Enforcement Public Education City of National City 5-164 65 of 297 SECTIONFIVE Goals, Objectives and Actions Emergency Management Weed Abatement • City of National City Development Services Department General Plan Development Standards (Building, Planning, Engineering) Development Review Process Code Enforcement Zoning Ordinances Traffic Control • City of National City Police Department Enforcement Investigation Security Emergency Response Traffic Control Table 5.13-2 City of National City: Administrative and Technical Capacity Staff/Personnel Resources Y/N Department/Agency and Position A. Planner(s) or engineer(s) with knowledge of land development and land management practices Y Development Services Department B. Engineer(s) or professional(s) trained in construction practices related to buildings and/or infrastructure Y Development Services Department C. Planner(s) or Engineer(s) with an understanding of natura I. a nd/or manmade hazards Y Fire/Development Services Department/Police D. Floodplain manager Y Development Services Department E. Surveyors N F. Staff with education or expertise to assess the community's vulnerability to hazards Y Fire/DevelopmentServices Department/Police G. P ersonnel s killed in G IS and/or HAZUS Y Fire/Development Services Department/Police H. Scientists familiar with the hazards of the community N I. Emergency manager Y City Manager's Office/Fire/Police 1. Grant writers Y Fire/DevelopmentServices Department/Police City of National City 66 of 297 5-165 SECTIONFIVE Goals, Objectives and Actions The legal and regulatory capabilities ofNational City are shown in Table 5.13-3, which presents the existing ordinances and codes that affect the physical or built environment of National City. Examples of legal and/or regulatory capabilities can include: the City's building codes, zoning ordinances, subdivision ordinances, special purpose ordinances, growth management ordinances, site plan review, general plans, capital improvement plans, economic development plans, emergency response plans, and real estate disclosure plans. Table 5.13-3 City of National City: Legal and Regulatory Capability Regulatory Tools (ordinance, codes, plans) Local Authority (Y1N) Does State Prohibit? (Y/N) A. Building code Y N B. Zoning ordinance Y N C. Subdivision ordinance or regulations Y N D. Special purpose ordinances (ftoodplain management, storm water management, hillside or steep slope ordinances, wildfire ordinances, hazard setback requirements) Y N E. Growth management ordinances (also called "smart growth" or anti -sprawl programs) N N F. Site plan review requirements Y N G. Generator comprehensive plan Y N H. A capital improvements plan Y N I. An economic development plan Y N J. An emergency response plan Y N K. A post -disaster recovery plan Y N L. A post -disaster recovery ordinance N N M. Real estate disclosure requirements N N 5.13.3 Fiscal Resources Table 5.13-4 shows specific financial and budgetary tools available to National City such as community development block grants; capital improvements project funding; authority to levy taxes for specific purposes; fees for water, sewer, gas, or electric services; impact fees for homebuyers or developers for new development; ability to incur debt through general obligations bonds; and withholding spending in hazard - prone areas. City of National City 67 of 297 5-166 SECTIONFIVE Goals, Objectives and Actions Table 5.13-4 City of National City: Fiscal Capability Financial Resources Accessible or Eligible to Use (Yes/No) A. Community Development Block G rants (C DBG) Yes- eligible, but limited accessibility B. Capital improvements project funding Yes- eligible, but limited accessibility C. Authority to levy taxes for specific purposes No- requires voter approval D. Fees for water, sewer, gas, or electric service Yes- Sewer Only E. Impact fees for homebuyers or developers for new developments/homes Yes- Parks Only F. Incur debt through general obligation bonds No- requires voter approval G. Incur debtthrough specialtax and revenue bonds No- requires voter approval H. Incur debt through private activity bonds No I. Withhold spending in hazard -prone areas Yes- subject to Council approval 5.13.4 Goals, Objectives and Actions Listed below are National City's specific hazard mitigation goals, objectives and related potential actions. For each goal, one or more objectives have been identified that provide strategies to attain the goal. Where appropriate, the City has identified a range of specific actions to achieve the objective and goal. The goals and objectives were developed by considering the risk assessment findings, localized hazard identification and loss/exposure estimates, and an analysis of the jurisdiction's current capabilities assessment. These preliminary goals, objectives and actions were developed to represent a vision of long- term hazard reduction or enhancement of capabilities. To help in further development of these goals and objectives, the LPG compiled and reviewed current jurisdictional sources including the City's planning documents, codes, and ordinances. In addition, City representatives met with consultant staff and/or OES to specifically discuss these hazard -related goals, objectives and actions as they related to the overall Plan. Representatives of numerous City departments involved in hazard mitigation planning, including Fire, Police, Planning, Engineering, and Redevelopment provided input to the National City LPG. The National City LPG members were: • • • • Ray Pe (Community Development Department) Walter Arnedee (Fire Department) Martin Reeder (Planning Department) Frank Para (Fire Department) Once developed, City staff submitted the final plan to Governor's Office of Emergency Services and FEMA for approval. Once approved, the plan will be taken to the City Council for adoption. City of National City 5-167 68 of 297 SECTIONFIVE Goals, Objectives and Actions An on-line survey was conducted to determine the public's needs and desires. This survey was posted on the homepage of all participating jurisdictions. In addition, an email address was provided for the public to send comments and suggestions to. This email address was checked daily for public input. The following sections present the hazard -related goals, objectives and actions as prepared by the County's LPG in conjunction with the Hazard Mitigation Working Group, locally elected officials, and local citizens. 5.13.4.1 Goals The City of National City has developed the following 8 Goals for their Hazard Mitigation Plan (See Attachment A for Goal 8). Goal 1. Promote disaster -resistant developments for new development. Goal 2. Promote public understanding, support and demand for hazard mitigation. Goal 3. Build and support local capacity and commitment to continuously become less vulnerable to hazards. Goal 4. Improve hazard mitigation coordination and communication with federal, state and other local governments. Reduce the possibility of damage and losses of existing assets, critical facilities/infrastructure, and City - owned facilities, and particularly impacts to people, due to: Goal 5. Earthquakes Goal 6. Floods Goal 7. Structural Fire/Wildfire Goal 8. Tsunamis Goal 9. Manmade Hazards (See Attachment A) 5.13.4.2 Objectives and Actions The City of National City developed the following broad list objectives and actions to assist in the implementation of each of their 8 identified goals. The City of National City developed objectives to assist in achieving their hazard mitigation goals. For each of these objectives, specific actions were developed that would assist in their implementation. A discussion of the prioritization and implementation of the action items is provided in Section 5.13.5. City of National City 5-168 69 of 297 SECTIONFIVE Goals, Objectives and Actions Goal 1: Promote disaster resistant developments for new development. New, Existing or Both Objective 1.A: Continue to address natural hazards in future general plan updates. Action 1.A.1 Action 1.A.2 Continue to update the General Plan periodically. Continue to update the Land Use Code periodically. New New Objective 1.B: Encourage and facilitate the adoption of building codes for new development and renovation that will protect these assets and new development in hazard areas. Action 1.B.1 Action 1.B.2 Adopt and implement current building and fire codes per state cycle. Continue to regularly adopt and implement existing building codes New New Objective 1.C: Continue to implement National City land use code and enforce building codes. Action 1.C.1 Action 1.C.2 Encourage and improve communications between the Development Services Department and Fire Department. Cross -train staff from Development Services Department and Fire on current relevant codes. Both Both Objective 1.D: Encourage future development that incorporates planning that will not exacerbate hazardous conditions. Action 1.D.1 Action 1.D.2 Review annually and update as necessary the Flood Plain Ordinance periodically. Continue to update Land Use Codes periodically. Both Both Objective 1.E: Consider appropriate zoning that will limit future development in hazard areas. Action 1.E.1 Action 1.E.2 Implement Geographic Information System (GIS) program citywide. Use GIS and Census data to plot hazard areas for new development. Both New Goal 2: Promote public understanding, support and demand for hazard mitigation. New Existing or Both Objective 2.A: Educate the public to increase awareness of hazards and opportunities for mitigation actions. Action 2.A.1 Action 2.A.2 Conduct workshops with Neighborhood Councils, Chamber of Commerce, interested groups, schools, individual homeowners, and business community on hazards that require advance preparedness. Continue to promote disaster preparedness with the distribution of print materials or videos. Both Both Objective 2.B: Promote partnerships between the state, counties and other local governments to identify, prioritize and implement mitigation actions. Action 2.B.1 Action 2.B.2 Participate in workgroup activities with the County Office of Emergency Services (OES), Unified Disaster Council (UDC). Participate in workgroup activities with other municipalities. Existing Existing City of National City 70 of 297 5-169 SECTIONFIVE Goals, Objectives and Actions Goal 2: Promote public understanding, support and demand for hazard mitigation. New Existing or Both Action 2.B.3 Action 2.B.4 Participate in workgroup activities with SANDAG. Participate in workgroup activities with Caltrans. Existing Existing Objective 2.C.• Promote hazard mitigation in the business community. Action 2.C.1 Action 2.C.2 Conduct workshops with the Chamber of Commerce, Rotary Clubs, etc. Conduct informational meetings with business owners/managers. Existing Existing Objective 2.D: Monitor and publicize the effectiveness of mitigation actions implemented citywide. Action 2.D.1 Develop method to keep community informed of progress. Existing Objective 2.E: Discourage building construction that exacerbates hazardous conditions. Action 2.E.1 Action 2.E.2 Actively implement code enforcement for building without permits. Actively implement code enforcement for hazardous occupancies in accordance with adopted codes. Existing Existing Goal 3: Build and support local capacity and commitment to continuously become less vulnerable to hazards. New, Existing or Both Objective 3.A: Increase awareness and knowledge of hazard mitigation principles and practice among local officials. Action 3.A.1 Action 3.A.2 Update and adopt the City of National City Emergency Plan every 10 years. Update and adopt the Hazard Mitigation Plan every 5 years. Existing Existing Objective 3.B: Develop a hazard mitigation plan and provide technical assistance to implement the plan. Action 3.B.1 Action 3.B.2 Work with the Fire Department, Development Services Department, Community Development Department, and Police Department to develop the hazard mitigation plan. Implement hazard mitigation plan recommendations. Existing Existing Goal 4: Improve hazard mitigation coordination and communication with federal, state and other local governments. New, Existing or Both Objective 4.A: Establish and maintain closer working relationships with state agencies and other local governments. Action 4.A.1 Continue to work with the Chamber of Commerce, American Red Cross, County Office of Emergency Services (OES), Unified Disaster Council (UDC), and Federal Emergency Management Agency (FEMA) to develop mitigation plans. Existing Action 4.A.2 Continue support/participation in regional programs to include HIRT and USAR Existing City of National City 71 of 297 5-170 SECTIONFIVE Goals, Objectives and Actions Goal 4: Improve hazard mitigation coordination and communication with federal, state and other local governments. New, Existing or Both Objective 4.B: Encourage other organizations to incorporate hazard mitigation activities. Action 4.B.1 Action 4.B.2 Hold seminars to encourage organizations to take mitigation actions. This initiative can be developed in modular format to address the information needs of a range of target groups. Make available a copy of the completed Hazard Mitigation Plan for the public to view. Existing Existing Objective 4.C: Improve the City's capability and efficiency at administering pre -and post- disaster mitigation. Action 4.C.1 Action 4.C.2 Action 4.C.3 Action 4.C.4 Work with the Fire Department, Development Services Department, Community Development Department, and Police Department to develop hazard mitigation plan. Maintain an Emergency Response Plan. Schedule Emergency Response Plan Exercises. Conduct on -going education programs to inform the community of pre -and post- disaster advice. Existing Existing Existing Existing Goal 5: Reduce particularly the possibility of damage and losses to existing assets, people and critical facilities/infrastructure due to earth I uakes. New, Existing or Both Objective 5.A: Develop a comprehensive approach to reducing the possibility of damage and losses due to earthquakes. Action 5.A.1 Conduct workshops with Neighborhood Councils, Chamber of Commerce, individual homeowners, and business community on hazards that require advance preparedness. Existing Action 5.A.2 Recommend that the City retrofit the City Hall as funds become available. Existing Action 5.A.3 Actively pursue grant funds and other funding sources to retrofit City Hall. Existing Action 5.A.4 Maintain an Emergency Response Plan and regularly schedule Exercises with City staff. Existing Action 5.A.5 Maintain search and rescue equipment deployment objectives. Existing Action 5.A.6 Determine structural safety of buildings to be used for care and shelter of evacuees. Existing Action 5.A.7 Create and adopt the following mandatory Ordinances to reduce the possibility of damage and losses due to earthquakes: Unreinforced Masonry Building Seismic Existing Retrofit Ordinance, Pre -Northridge Steel Moment Frame Retrofit Ordinance, Non - Ductile Concrete Building Seismic Retrofit Ordinance, Soft First Story Wood Frame Seismic Building Retrofit Ordinance, Tilt -up Building Seismic Retrofit Ordinance, Wood Frame Cripple Wall Seismic Retrofit Ordinance, and "Excessive Damage" Ordinance. City of National City 72 of 297 5-171 SECTIONFIVE Goals, Objectives and Actions Goal 5: Reduce particularly the possibility of damage and losses to existing assets, people and critical facilities/infrastructure due to earthquakes. New, Existing or Both Action 5.A.8 Create and adopt a back to business or building occupancy resumption program (BORP) program. Existing Objective 5.B: Protect existing assets with the highest relative vulnerability to the effects of earthquakes Action 5.B.1 Action 5.B.2 Action 5.B.3 Action 5.B.4 Adopt and implement existing building codes. Conduct inspections of at -risk structures that conduct care for children, seniors, and other group homes. Conduct inspections of child care facilities, senior facilities, and other facilities where occupants may be severely impacted to ensure the structures are structurally safe. Conduct informational meetings with Neighborhood Councils, Chamber of Commerce, individual homeowners, and business community. Existing Existing Existing Existing Objective 5. C. Address identified data limitations regarding the lack of information about the relative vulnerability of assets from earthquakes. Action 5.C.1 Action 5.C.2 Action 5.C.3 Implement GIS program citywide. Use GIS and Census data to locate vulnerable buildings. Create a Vulnerable Building Inventory list. Existing Existing Existing Goal 6: Reduce particularly the possibility of damage and losses to existing assets, people and critical facilities/infrastructure due to floods. New, Existing or Both Objective 6.A: Develop a comprehensive approach to reducing the possibility of damage and losses due to floods. Action 6.A.1 Action 6.A.2 Action 6.A.3 Action 6.A.4 Action 6.A.5 Action 6.A.6 Maintain Flood Retrofitting for Residential Structures. Maintain Storm Water System in Operable Conditions. Reduce Impervious Surfaces through implementation of a landscape ordinance that encroaches previous site design. Maintain and update a city-wide Evacuation Plan. Maintain search and rescue equipment deployment objectives. Continue to participate in the National Flood Insurance Program and requirement to review applications for conformance with NFIP standards. Existing Existing Existing Existing Existing Existing Objective 6.B: Protect existing assets with the highest relative vulnerability to the effects offloods within the 100- year floodplain. Action 6.B.1 Action 6.B.2 Maintain adequate materials to disperse to the public for installing water barriers when necessary. Construct detention basins when necessary and review new development for adequate design features. Existing New City of National City 73 of 297 5-172 SECTIONFIVE Goals, Objectives and Actions Goal 6: Reduce particularly the possibility of damage and losses to existing assets, people and critical facilities/infrastructure due to floods. New, Existing or Both Objective 6. C: Coordinate with and support existing efforts to mitigate floods (e.g., U.S. Army Corps ofEngineers, US Bureau of Reclamation, and California Department of Water Resources). Action 6.C.1 Action 6.C.2 Action 6.C.3 Regularly participate in workgroup activities with the County. Regularly participate in workgroup activities with the Caltrans. Regularly participate in workgroup activities with the other municipalities. Existing Existing Existing Objective 6.D: Minimize repetitive losses caused by flooding. Action 6.D.1 Action 6.D.2 Prepare and implement Best Management Practices for all new development. Schedule Flood Mitigation and recovery Interactive Exercises. New Existing Objective 6.E: Address identified data limitations regarding the lack of information about the relative vulnerability of assets from flooding/dam failure. Action 6.E.1 Action 6.E.2 Action 6.E.3 Action 6.E.4 Identify and prioritize critical facilities within dam inundation zones. Update plans/data periodically to adequately represent vulnerable populations. Conduct survey of assets within dam inundation areas. Update GIS maps that identify the dam inundation zones. Existing Existing New New Goal 7: Reduce particularly fire/wildfire. the possibility of damage and losses to existing assets, people and critical facilities/infrastructure due to structural New, Existing or Both Objective 7.A: Develop a comprehensive approach to reducing the possibility of damage and losses due to structural fire/wildfire. Action 7.A.1 Action 7.A.2 Action 7.A.3 Action 7.A.4 Action 7.A.5 Action 7.A.6 Action 7.A.7 Regularly maintain a Fire Prevention Program. Regularly maintain a Pre -Fire Plan Program. Regularly maintain a Fire Suppression Program. Assess staffing levels of Fire Prevention Staff and increase as appropriate. Develop a Housing Inspection Program and routinely conduct housing inspections of homes over 50 years old. Conduct a Housing Outreach Program. Maintain/update all Arson Registrants with required registration and conditions of probation or parole. Existing Existing Existing Existing Existing Existing Existing Objective 7.B: Action 7.B.1 Protect existing assets with the highest relative vulnerability to the effects of structural Maintain response times, pumping capacity and apparatus and equipment deployment obj ectives. fire/wildfire. Existing City of National City 74 of 297 5-173 SECTIONFIVE Goals, Objectives and Actions Goal 7: Reduce particularly fire/wildfire. the possibility of damage and losses to existing assets, people and critical facilities/infrastructure due to structural New, Existing or Both Action 7.B.2 Annually assess staffing levels and ensure adequate staffing is available to meet fire suppression objectives. Existing Action 7.B.3 Action 7.B.4 Action 7.B.5 Action 7.B.6 Maintain standard operating procedures for fire ground operations. Conduct annual wildland fire fighting and ICS training to ensure operational readiness. Identify and work to eliminate non -fire resistant roofs. Install automatic fire detection and extinguishing systems in buildings according to adopted codes. Existing Existing Existing Existing Objective 7.C: Coordinate with and support existing efforts to mitigate structural fire/wildfire. Action 7.C.1 Action 7.C.2 Action 7.C.3 Action 7.C.4 Maintain mutual/auto aid agreements with neighboring municipalities. Maintain an inspection process to ensure buildings are constructed in accordance with adopted codes. Conduct evacuation drills in high rise buildings. Maintain/update all Arson Registrants with required registration and conditions of probation or parole. Existing Existing Existing Existing Objective 7.D: Address identified data limitations regarding the lack of information about the relative vulnerability of assets from structural fire/wildfire. Action 7.D.1 Action 7.D.2 Implement GIS program citywide. Use GIS and Census data to locate vulnerable buildings. Existing Existing Goal 8: Reduce the possibility of damage and losses to existing assets, particularly people and businesses, due to tsunami. New, Existing or Both Objective 8.A: Develop a comprehensive approach to reducing the possibility of damage and losses due to tsunamis. Action 8.A.1 Action 8.A.2 Clearly identify potential tsunami prone areas Review the Tsunami Evacuation Playbook periodically to ensure efficient notification protocols Existing Existing Objective 8.B: Coordinate with and support existing efforts to mitigate floods (e.g., US Army Corps of Engineers, US Bureau of Reclamation, and California Department of Water Resources). Action 8.B.1 Action 8.B.2 Enforce regulatory measures related to development within 100-year flood plain Periodically review the City's compliance with NFIP regulations, as resources become available Existing Existing Objective 8.C: Minimize repetitive losses caused by coastal flooding, erosion, sea -level rise, and/or tsunami. Action 8.C.1 Restrict ability to re -build, unless mitigation measures to avoid repeat losses are taken Existing City of National City 75 of 297 5-174 SECTIONFIVE Goals, Objectives and Actions Goal 8: Reduce the possibility of damage and losses to existing assets, particularly people and businesses, due to tsunami. New, Existing or Both Objective 8.D: Address identified data limitations regarding the lack of information about relative vulnerability of assets from tsunami. Action 8.D.1 Action 8.D.2 Action 8.D.3 Work with regional agencies, (OES, UDC, SanGIS) to accurately map the tsunami inundation maps Share and train with acquired information with all City departments and personnel Continue to coordinate with neighboring jurisdictions on joint training opportunities between staffs Existing Existing Existing Goal 9: Reduce the possibility of damage and losses to people, facilities/ infrastructure, publicly owned facilities and other assets due to extreme heat and drought. New, Existing or Both Objective 9.A: Develop a comprehensive approach to reducing the possibility of damage and losses due to extreme heat and drought. Action 9.A.1 Encourage residents to adopt drought tolerant landscaping or xeriscape practices. Existing Action 9.A.2 Organize outreach to vulnerable populations. Existing Action 9.A.3 Provide educational materials on severe weather and mitigation strategies on the City website and through all forms of social media. Existing Action 9.A.4 Link vulnerable populations to resources such as cooling centers and transportation services in order to reduce losses in the face of drought or extreme heat. Existing Action 9.A.5 Continue to participate in the National Weather Service StormReady Program. Existing Action 9.A.6 Implement water efficiency upgrades at municipal buildings, parks and publicly owned facilities. Existing 5.13.5 Prioritization and Implementation of Action Items Once the comprehensive list of jurisdictional goals, objectives, and action items listed above was developed, the proposed mitigation actions were prioritized. This step resulted in a list of acceptable and realistic actions that address the hazards identified in each jurisdiction. This prioritized list of action items was formed by the LPG weighing STAPLEE criteria. The Disaster Mitigation Action of 2000 (at 44 CFR Parts 201 and 206) requires the development of an action plan that not only includes prioritized actions but one that includes information on how the prioritized actions will be implemented. Implementation consists of identifying who is responsible for which action, what kind of funding mechanisms and other resources are available or will be pursued, and when the action will be completed. The prioritized actions below reflect progress in local mitigation efforts as well as changes in development. The top 9 prioritized mitigation actions as well as an implementation strategy for each are: City of National City 5-175 76 of 297 SECTIONFIVE Goals, Objectives and Actions Priority Action #1: Update the General Plan as necessary. Coordinating Individual/Organization: Community Development Potential Funding Source: General Fund Implementation Timeline: On -going Priority Action #2: Maintain response times, pumping capacity, and apparatus and equipment deployment objectives. Coordinating Individual/Organization: Fire Department Potential Funding Source: City General Fund, Community Development Block Grant along with other applicable funding sources. Implementation Timeline: On -going Priority Action #3: Maintain/update all Arson Registrants with required registration and conditions of probation or parole. Coordinating Individual/Organization: Police Department Potential Funding Source: General/Other Applicable Funds Implementation Timeline: On -going Priority Action #4: Work with the regional Law Enforcement Coordination Center (LECC) and Fusion Center Coordinating Individual/Organization: Police Department Potential Funding Source: General/Other Applicable Funds Implementation Timeline: On -going Priority Action #5: Continue Maintenance of the Storm Water System in Operable Conditions Coordinating Individual/Organization: Department of Public Works/Development Services Department Potential Funding Source: CDBG, Gas Tax, Sewer System Maintenance, and General Funds Implementation Timeline: On -going Priority Action #6: Implement code enforcement for buildings without permits. Coordinating Individual/Organization: Development Services Department Potential Funding Source: Citation fees/General fund Implementation Timeline: On -going Priority Action #7: Maintain a Fire prevention Program Coordinating Individual/Organization: Fire Department Potential Funding Source: General/Other Applicable Funds Implementation Timeline: On -going Priority Action #8: Implement GIS Program Coordinating Individual/Organization: Development Services Department Potential Funding Source: General/Other Applicable Funds Implementation Timeline: January 2010 - December 2015 City of National City 5-176 77 of 297 SECTIONFIVE Goals, Objectives and Actions Priority Action #9: Continue to update Land Use Code periodically. Coordinating Individual/Organization: Community Development Potential Funding Source: General Fund Implementation Timeline: On -going City of National City 5-177 78 of 297 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING AND ADOPTING THE UPDATED MULTI -JURISDICTIONAL HAZARD MITIGATION PLAN, AND AUTHORIZING THE CITY MANAGER TO IMPLEMENT SAID PLAN WHEREAS, the City of National City has experienced natural, technological, and human -caused disasters on many occasions in the past 50 years, resulting in property Toss, loss of life, economic hardship, and threats to public health and safety; and WHEREAS, the majority of San Diego County's 2.9 million residents live in areas subject to these disasters; and WHEREAS, the Disaster Mitigation Act of 2000 (the "Act"), signed into law on October 30, 2000 (Public Law 106-390), required all jurisdictions to have an approved hazard mitigation plan in place prior to November 1, 2004, in order to qualify for hazard mitigation program grants and post disaster mitigation funds; and WHEREAS, the Disaster Mitigation Act required that the hazard mitigation plan identify and assess the risks related to disasters, implement adequate measures to reduce losses, and ensure critical services and facilities will continue to function after the disaster; and WHEREAS, in June 2003, the County of San Diego and their consultant, URS Corporation, began meeting with all eighteen (18) Cities within the County to develop a Multi - Jurisdictional Hazard Mitigation Plan (the "Plan") to comply with federal law; and WHEREAS, the City Council approved and adopted the Multi -Jurisdictional Hazard Mitigation Plan (the "Plan") on May 4, 2004 through the adoption of Resolution 2004-74; and WHEREAS, the Plan, which is required by law to be updated every five (5) years, was subsequently updated in 2011, and approved by the City Council through the adoption of Resolution No. 2011-78 on April 5, 2011; and WHEREAS, specific goals, objectives, and action items applicable to National City were updated in the Plan after reviewing the current capabilities of the City to lessen the impact of natural disasters. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves the updated Multi -Jurisdictional Hazard Mitigation Plan, which is hereby adopted as an official plan of the City of National City. IT IS FURTHER RESOLVED that the City Manager will direct City staff to implement the recommended actions assigned to the City in the updated Multi -Jurisdictional Hazard Mitigation Plan. [Signature Page to Follow] 79 of 297 Resolution No. 2017 — Page Two PASSED and ADOPTED this 5th day of December, 2017. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ron Morrison, Mayor 80 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 81 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing the acceptance of the lowest, responsive, responsible bid, for the purchase of (1) 2018 Nissan Altima, for the Police Department from Mossy Nissan of National City, in the amount of $ 81 of 297 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 5, 2017 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the acceptance of the lowest, responsive, responsible bid, for the purchase of (1) 2018 Nissan Altima, for the Police Department from Mossy Nissan of National City, in the amount of $18,896.22. PREPARED BY: Debbie Lunt PHONE: 336-4582 DEPARTMENT: Finan APPROVED BY: EXPLANATION: Request for Bid #GS1718-1 was issued for the purchase of (1) 2018 Nissan Altima, or equal, for the Police Department. Bids were mailed to fifteen (15) vendors, netting one (1) response. Bids were opened and publicly read on November 14, 2017, with no vendors present for the opening. The purpose of the vehicle is as follows: (1) 2018 Nissan Altima (Police) - Investigations Vehicle FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: ,Q Finance Funds are appropriated in account number 644-411-000-511-0000 - $18,896.22 ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the Resolution, accepting the bid and authorizing the purchase. BOARD / COMMISSION RECOMMENDATION: N/A MIS ATTACHMENTS: 1. Resolution 2. Bid Abstract 82 of 297 GS1718-1 Nissan Altimas BID ABSTRACT/ANALYSIS 11/20/2017 SPEC #1 8.75% TIRE SUB PYMT TERMS TOTAL 2% Local BIDDER: ALTIMA TAX FEE REBATE TOTAL (BID-%) AWARD Tax Adi. NOTES Mossy Nissan National City $22,141.00 $1,937.34 $8.75 ($5,000.00) $19,087.09 ($190.87) $18,896.22 ($377.92) AWARD National City, CA 1 % Net 30 Mossy Nissan Poway No Response Poway, CA Mossy Nissan El Cajon No Response El Cajon, CA Buena Park Nissan Received bid late Buena Park, CA Costa Mesa Nissan No Response Costa Mesa, CA Imperio Nissan of San Juan Capistrano No Response San Juan Capistrano, CA Imperio Nissan of Garden Grove No Response Garden Grove, CA Imperio Nissan of Irvine No Response Irvine, CA Mossy Nissan Escondidc No Response Escondido, CA Mossy Nissan Kearny Mese No Response San Diego, CA Mossy Nissan Oceanside No Response Oceanside, CA Mossy Nissan Chula Vista No Response Chula Vista, CA Pacific Nissan No Response San Diego, CA Stadium Nissan No Response Orange, CA Tustin Nissan No Response Tustin, CA 83 of 297 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE ACCEPTANCE OF THE LOWEST, RESPONSIVE, RESPONSIBLE BID FOR THE PURCHASE OF ONE (1) 2018 NISSAN ALTIMA, FOR THE POLICE DEPARTMENT FROM MOSSY NISSAN OF NATIONAL CITY IN THE AMOUNT OF $18,896.22 WHEREAS, Bid No. GS1718-1 was issued for the purchase of one (1) 2018 Nissan Altima, or equal price, size, and class, for the Police Department; and WHEREAS, bids were mailed to fifteen (15) vendors, netting one (1) response, which were opened and publicly read on November 14, 2017, with no vendors present. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby awards the contract for the purchase of one (1) 2018 Nissan Altima to the lowest responsive, responsible bidder, to wit: MOSSY NISSAN OF NATIONAL CITY BE IT FURTHER RESOLVED that the City Council of the City of National City hereby authorizes the purchase of one (1) one 2018 Nissan Altima from Mossy Nissan of National City in the amount of $18,896.22 for the Police Department. PASSED and ADOPTED this 5th day of December, 2017. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ron Morrison, Mayor 84 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 85 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing the acceptance of the lowest, responsive, responsible bid, for the purchase of (1) 2018 Toyota Camry LE, for the Police Department from Kearny Mesa Toyota of San Diego, in the amount 85 of 297 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 5, 2017 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the acceptance of the lowest, responsive, responsible bid, for the purchase of (1) 2018 Toyota Camry LE, for the Police Department from Kearny Mesa Toyota of San Diego, in the amount of $24,016.74. PREPARED BY: Debbie Lunt PHONE: 336-4582 EXPLANATION: DEPARTMENT: Finance APPROVED BY: Request for Bid #GS1718-2 was issued for the purchase of one (1) 2018 Toyota Camry LE, or equal, for the Police Department. Bids were mailed to eleven (11) vendors, netting three (3) responses. Bids were opened and publicly read on November 14, 2017, with no vendors present for the opening. The purpose of the vehicles are as follows: (1) 2018 Toyota Camry (Police) — Investigations Vehicle FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: ,Q Finance Funds are appropriated in account number 644-411-000-511-0000 - $24,016.74 ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the Resolution, accepting the bid and authorizing the purchase. BOARD / COMMISSION RECOMMENDATION: N/A MIS ATTACHMENTS: 1. Resolution 2. Bid Abstract 86 of 297 GS1718-2 Toyota Camry BID ABSTRACT/ANALYSIS 11 /21 /2017 2% Local CAMRY Other SUB Tax TIRE FEE Doc Fee PYMNT TERM Tax Adi. TOTAL Kearny Mesa Toyota Scion $21,961.00 $116.00 $22,077.00 $1,931.74 $8.00 $0.00 Net 15 Net 15 $24,016.74 AWARD San Diego, CA Frank Toyota Scion $22,468.00 $80.00 $22,548.00 $1,972.95 $7.00 $283.00 Net 14 ($496.22) $24,314.73 National City, CA Toyota San Diego $22,711.00 $430.00 $23,141.00 $2,024.84 $8.75 $0.00 Net 15 Net 15 $25,174.59 San Diego, CA Bob Baker Toyota No Response Lemon Grove, CA DCH Toyota of Torrance No Response Torrance, CA Honest Honda & Toyota No Response Lemon Grove, CA Toyota Carlsbad No Response Carlsbad, CA Toyota Chula Vista No Response Chula Vista, CA Toyota El Cajon No Response El Cajon, CA Toyota of Escondido No Response Escondido, CA Toyota of Poway No Response Poway, CA 87 of 297 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE ACCEPTANCE OF THE LOWEST, RESPONSIVE, RESPONSIBLE BID FOR THE PURCHASE OF (1) 2018 TOYOTA CAMRY LE, FOR THE POLICE DEPARTMENT FROM KEARNY MESA TOYOTA OF SAN DIEGO IN THE AMOUNT OF $24,016,74 WHEREAS, Bid No. GS1718-2 was issued for the purchase of one (1) 2018 Toyota Camry LE, or equal price, size, and class, for the Police Department; and WHEREAS, bids were mailed to eleven (11) vendors, netting three (3) responses, which were opened and publicly read on November 14, 2017, with no vendors present. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby awards the contract for the purchase of one (1) 2018 Toyota Camry LE to the lowest responsive, responsible bidder, to wit: KEARNY MESA TOYOTA OF SAN DIEGO BE IT FURTHER RESOLVED that the City Council of the City of National City hereby authorizes the purchase of one (1) 2018 Toyota Camry LE from Kearny Mesa Toyota of San Diego in the amount of $24,016.74 for the Police Department. PASSED and ADOPTED this 5th day of December, 2017. ATTEST: Michael R. Delia, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ron Morrison, Mayor 88 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 89 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing the acceptance of the lowest, responsive, responsible bid, for the purchase of (1) 2018 Honda Accord LX, for the Police Department from Pacific Honda of San Diego, in the amount of $2 89 of 297 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 5, 2017 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the acceptance of the lowest, responsive, responsible bid, for the purchase of (1) 2018 Honda Accord LX, for the Police Department from Pacific Honda of San Diego, in the amount of $24,228.46. PREPARED BY: Debbie Lunt DEPARTMENT: Finance PHONE: 336-4582 APPROVED BY: EXPLANATION: Request for Bid #GS1718-3 was issued for the purchase of (1) 2018 Honda Accord LX, or equal, for the Police Department. Bids were mailed to nine (9) vendors, netting two (2) responses. Bids were opened and publicly read on November 14, 2017, with no vendors present for the opening. The purpose of the vehicle is as follows: (1) 2018 Honda Accord LX (Police) - Investigations Vehicle FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: ,Q Finance Funds are appropriated in account number 644-411-000-511-0000 - $24,228.46 ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the Resolution, accepting the bid and authorizing the purchase. BOARD / COMMISSION RECOMMENDATION: N/A MIS ATTACHMENTS: 1. Resolution 2. Bid Abstract 90 of 297 GS1718-3 Honda Accord BID ABSTRACT/ANALYSIS 11/21/2017 SPEC #1 8.75% TIRE SUB PYMT TERMS TOTAL BIDDER: ACCORD OTHER TAX FEE TOTAL (BID-%) AWARD NOTES Pacific Honda $22,044.00 $227.00 $1,948.71 $8.75 $24,228.46 Net 30 $24,228.46 AWARD San Diego, CA Mossy Honda of Lemon Grove $22,664.00 $450.60 $2,022.53 $8.75 $25,145.88 Includes cash discount of 7.3% $25,145.88 Lemon Grove, CA Ball Honda Received Non Sealed Bid DISQ National City, CA Hoehn Honda No Response Carlsbad, CA Honda of El Cajon No Response El Cajon, CA Honda of Escondido No Response Escondido, CA DCH Honda of Mission Valley No Response San Diego, CA Penske Honda Chula Vista No Response Chula Vista, CA Poway Honda No Response Poway, CA 91 of 297 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE ACCEPTANCE OF THE LOWEST, RESPONSIVE, RESPONSIBLE BID, FOR THE PURCHASE OF (1) 2018 HONDA ACCORD LX FOR THE POLICE DEPARTMENT FROM PACIFIC HONDA OF SAN DIEGO, IN THE AMOUNT OF $24,228.46 WHEREAS, Bid No. GS1718-3 was issued for the purchase of one (1) 2018 Honda Accord LX, or equal price, size, and class, for the Police Department; and WHEREAS, bids were mailed to nine (9) vendors, netting two (2) responses, which were opened and publicly read on November 14, 2017, with no vendors present. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby awards the contract for the purchase of one (1) 2018 Honda Accord LX to the lowest responsive, responsible bidder, to wit: PACIFIC HONDA OF SAN DIEGO BE IT FURTHER RESOLVED that the City Council of the City of National City hereby authorizes the purchase of one (1) 2018 Honda Accord LX from Pacific Honda of San Diego in the amount of $24,228.46 for the Police Department. PASSED and ADOPTED this 5th day of December, 2017. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ron Morrison, Mayor 92 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 93 The following page(s) contain the backup material for Agenda Item: Warrant Register #17 for the period of 10/18/17 through 10/24/17 in the amount of $1,485,441.46. (Finance) 93 of 297 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 5, 2017 AGENDA ITEM NO.: ITEM TITLE: Warrant Register #17 for the period of 10/18/17 through 10/24/17 in the amount of $1,485,441.46. (Finance) PREPARED BY:Karla Apalategui, Accounting Assistant PHONE: 619-336-4572 DEPARTMENT: Finance APPROVED BY: EXPLANATION: Per Government Section Code 37208, attached are the warrants issued for the period of 10/18/17 through 10/24/17. Consistent with Department of Finance, listed below are all payments above $50,000. Vendor Public Emp Ret System Check/Wire 10182017 Amount 229,150.43 Explanation Service Period 09/26/17 — 10/09/17 FINANCIAL STATEMENT: ACCOUNT NO. Warrant total $1,485,441.46. APPROVED: `07 G� - FINANCE APPROVED: MIS ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION FINAL ADOPTION STAFF RECOMMENDATION: Ratify warrants totaling $1,485,441.46 BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: Warrant Register #17 94 of 297 // CALIFORNIA F__ 1/2 PAYEE BETANCOURT, RODOLFO BITMAP GRAPHICS CREATIVE IMAGES GOVERNMENT SOCIAL MEDIA LLC YBARRA, A GUSTAVO PUENTES ROYAL LINES CHARTERS LLC REGIONAL TRAINING CENTER ACE UNIFORMS & ACCESSORIES INC ADMINSURE INC AIRGAS WEST AZTEC APPLIANCE BOOT WORLD CASAS, LAURA CITY OF NATIONAL CITY COMMERCIAL AQUATIC SERVICE INC COUNTYWIDE MECHANICAL CS LEGACY CONSTRUCTION INC DANIELS TIRE SERVICE DELTA DENTAL INSURANCE CO DELTA DENTAL INSURANCE CO ED BRAINARD EXPRESS PIPE AND SUPPLY CO INC FERGUSON ENTERPRISES INC GOVCONNECTION INC GRAINGER HEALTH NET HERNANDEZ, A HUB CONSTRUCTION JOE D MOBILE INSTALLS JOHNSON, S JONES, DEREK KAISER FOUNDATION HEALTH PLANS KREPPS, B LANGUAGE LINE SERVICES LEFORTS SMALL ENGINE REPAIR LEXIPOL LLC LOPEZ, TERESA YOLANDA MENDIVIL, A NAPA AUTO PARTS NATIONAL CITY ELECTRIC NOWDOCS INTERNATIONAL INC PARTS AUTHORITY METRO LLC PARTS AUTHORITY METRO LLC PENSKE FORD POWERSTRIDE BATTERY CO INC PRO BUILD PRUDENTIAL OVERALL SUPPLY QUAL CHEM CORPORATION RED WING SHOES STORE -M'I.O�l.�J -.. L C ' r117. jaa ? CORPQRAT8L WARRANT REGISTER #17 10/24/2017 DESCRIPTION CHK NO DATE AMOUNT LIVE ENTERTAINMENT / STATE OF THE CITY 331345 10/24/17 200.00 PHOTOGRAPHY COVERAGE/STATE OF THE CITY 331346 10/24/17 200.00 PHOTO COVERAGE / STATE OF THE CITY ADDRESS 331347 10/24/17 150.00 2018 GSMCON REGISTRATION - MAXILOM 331348 10/24/17 750.00 TRAINING ADV LODGE COPSWEST/ YBARRA 331349 10/24/17 457.64 TABLES, CHAIRS & LINEN / STATE OF THE CITY 331350 10/24/17 1,560.00 BUS TRANSPORTATION /STATE OF THE CITY 331351 10/24/17 450.00 HR TRAINING ACADEMY / D. RAMOS 331352 10/24/17 1,120.00 NEW OFFICER UNIFORM SUPPLIES / PD 331353 10/24/17 72.18 WORKERS COMPENSATION CLAIMS NOV 2017 331354 10/24/17 7,169.16 MOP#45714 SAFETY ITEMS / PW 331355 10/24/17 178.64 CITY WIDE APPLIANCE PURCHASES / PW 331356 10/24/17 213.34 MOP#64096 SAFETY BOOTS / PW 331357 10/24/17 250.00 INTERPRETATION SVCS FOR COUNCIL MEETINGS 331358 10/24/17 675.00 PETTY CASH REPLENISHMENT / JULY 2017 331359 10/24/17 881.55 CHEMICAL SUPPLIES FOR POOL / PW 331360 10/24/17 957.00 CITY WIDE ONSITE HEATING & VENTILATION / PW 331361 10/24/17 1,917.83 PARADISE CREEK ED. PARK 331362 10/24/17 46,493.62 MOP# 76986 TIRES / PW 331363 10/24/17 1,712.81 COBRA PREMIER / 05-098601002 / SEP2017 331364 10/24/17 90.44 DENTAL INS PMI /SEPT 2017 331365 10/24/17 71.94 HORTICULTURAL SEMINAR / ROUSTON / PW 331366 10/24/17 420.00 CITY WIDE PLUMBING PARTS & MATERIALS / PW 331367 10/24/17 777.96 MOP# 45723 GENERAL SUPPLIES / PW 331368 10/24/17 198.62 PANASONIC TABLETS / PD 331369 10/24/17 1,043.13 MOP 65179 GENERAL SUPPLIES / PW 331370 10/24/17 1,659.54 HEALTH NET JULY & SEPTEMBER 2017 331371 10/24/17 638.26 REIMB: A. HERNANDEZ KIWANIS DUES / PD 331372 10/24/17 100.00 STEEL FLAT STAKE / PW 331373 10/24/17 178.57 SCREWS, NUTS, BOLTS / PW 331374 10/24/17 1,613.88 REIMBURSEMENT / TINY TOTS SUPPLIES 331375 10/24/17 38.36 SWITCH / PW 331376 10/24/17 58.24 COBRA / SEPT 2017 / GROUP 104220-7002 331377 10/24/17 2,624.80 EDUCATION REIMBURSEMENT 331378 10/24/17 660.00 INTERPRETATION SERVICES / PD 331379 10/24/17 92.75 MOP 80702 AUTO SUPPLIES / PW 331380 10/24/17 157.69 LEXIPOL JULY 2017 MONTHLY SERVICE / PD 331381 10/24/17 1,695.00 INTERPRETATION SVCS FOR COUNCIL MEETINGS 331382 10/24/17 600.00 TRAVEL REIMBURSEMENT / MENDIVIL 331383 10/24/17 133.07 MOP 45735 GENERAL SUPPLIES /PW 331384 10/24/17 58.59 CITY WIDE ELECTRICAL MAINTENANCE / PW 331385 10/24/17 5,895.00 W2 FORMS W/BACKER & W2 ENVELOPES 331386 10/24/17 187.92 MOP 75943 AUTO PARTS /PW 331387 10/24/17 190.66 MOP# 75943 AUTO PARTS / PW 331388 10/24/17 25.72 MOP 49078 AUTO PARTS /PW 331389 10/24/17 270.64 MOP# 67839 AUTO PARTS / PW 331390 10/24/17 1,006.63 MOP 45707 GENERAL SUPPLIES / PW 331391 10/24/17 2,063.85 MOP 45742 LAUNDRY SERVICES / PW 331392 10/24/17 850.94 LIME GONE REN 331393 10/24/17 364.15 95 of 297 SAFETY BOOTS 331394 10/24/17 250.00 2/2 PAYEE RELY ENVIRONMENTAL ROUSTON, J SAN DIEGO PET SUPPLY SANTORA, ANGELA SDG&E SITEONE LANDSCAPE SUPPLY LLC SMART & FINAL SMART SOURCE OF CALIFORNIA LLC STAPLES BUSINESS ADVANTAGE SUPERIOR READY MIX SWEETWATER AUTHORITY SYMBOLARTS, LLC T MAN TRAFFIC SUPPLY THE LIGHTHOUSE INC THE SHERWIN WILLIAMS CO TOPECO PRODUCTS TURF STAR U S BANK UNDERGROUND SERVICE ALERT VALLEY INDUSTRIAL SPECIALTIES VCA EMERGENCY ANIMAL HOSPITAL VISION SERVICE PLAN VORTEX INDUSTRIES INC VULCAN MATERIALS COMPANY WAXIE SANITARY SUPPLY WESTFLEX INDUSTRIAL WILLY'S ELECTRONIC SUPPLY WIRED PAYMENTS PUBLIC EMP RETIREMENT SYSTEM PAYROLL Pay period Start Date 22 10/10/2017 CALIFORNIA NATIoNAL ''_ 1' j ?AICORPQRAT8D WARRANT REGISTER #17 10/24/2017 DESCRIPTION HAZARDOUS WASTE PICK UP / ENG TRAVEL MILEAGE REIMBURSEMENT / PW CANINE SUPPLIES / PD MURAL PAINTING AT CASA / CSD STREETS DIVISION GAS & ELECTRIC UTILITIES MOP 45720 LANDSCAPE SUPPLIES / PW MOP 45756 SUPPLIES FOR PD MOP / SMART SOURCE / PD MOP/STAPLES/PD COLD MIX ASPHALTS & TACK OIL / PW FACILITIES DIVISION WATER UTILITIES POLICE BADGES MOP 76666 TRAFFIC SUPPLIES / PW MOP# 45726 AUTO PARTS / PW MOP 77816 PAINT SUPPLIES / PW MOP 63849 AUTO SUPPLIES /PW BELT HEX - PW US BANK / PD UNDERGROUND SERVICE ALERT FY 2018 MOP 46453 GENERAL SUPPLIES / PW STRAY ANIMAL VET CARE / PD VISION SERVICE PLAN (CA) / OCT 2017 CITY WIDE ON SITE SERVICE & REPAIRS / PW 3/4 IN CL BASE STREETS PW MISCELLANEOUS JANITORIAL SUPPLIES / PW MEGA CRIMP SUPPLIES / PW MOP BATTERIES / PD SERVICE PERIOD 09/26/17 - 10/09/17 End Date Check Date 10/23/2017 11 /1 /2017 CHK NO DATE AMOUNT 331395 10/24/17 1,839.00 331396 10/24/17 52.22 331397 10/24/17 351.11 331398 10/24/17 400.00 331399 10/24/17 15, 854.68 331400 10/24/17 514.94 331401 10/24/17 127.83 331402 10/24/17 555.76 331403 10/24/17 957.56 331404 10/24/17 1,009.68 331405 10/24/17 13,239.74 331406 10/24/17 90.00 331407 10/24/17 1,446.00 331408 10/24/17 449.19 331409 10/24/17 122.08 331410 10/24/17 216.74 331411 10/24/17 282.62 331412 10/24/17 1,116.01 331413 10/24/17 269.05 331414 10/24/17 133.35 331415 10/24/17 944.47 331416 10/24/17 678.27 331417 10/24/17 846.69 331418 10/24/17 272.25 331419 10/24/17 1,549.94 331420 10/24/17 968.21 331421 10/24/17 247.95 A/P Total 133,960.46 10182017 10/18/17 229,150.43 1,122,330.57 GRAND TOTAL $1,485,441.46 96 of 297 Certification IN ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE HEREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS AND DEMANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. MARK ROBERTS, FINANCE LESLIE DEESE, CITY MANAGER FINANCE COMMITTEE RONALD J. MORRISON, MAYOR -CHAIRMAN ALBERT MENDIVIL, VICE -MAYOR ALEJANDRA SOTELO-SOLIS, MEMBER MONA RIOS, MEMBER JERRY CANO, MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER IS AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY THE CITY COUNCIL ON THE 5th OF DECEMBER 2017. AYES NAYS ABSENT 97 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 98 The following page(s) contain the backup material for Agenda Item: Warrant Register #18 for the period of 10/25/17 through 10/31/17 in the amount of $269,109.72. (Finance) 98 of 297 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 5, 2017 AGENDA ITEM NO.: ITEM TITLE: Warrant Register #18 for the period of 10/25/17 through 10/31/17 in the amount of $269,109.72. (Finance) PREPARED BY:Karla Apalategui, Accounting Assistant PHONE: 619-336-4572 DEPARTMENT: Finance APPROVED BY: EXPLANATION: Per Government Section Code 37208, attached are the warrants issued for the period of 10/25/17 through 10/31/17. Consistent with Department of Finance, listed below are all payments above $50,000. Vendor Check/Wire Amount City of San Diego 331440 58,083.00 Explanation Dispatch Services / Fire FINANCIAL STATEMENT: ACCOUNT NO. Warrant total $269,109.72. APPROVED: `—/Z/7 4 G� - FINANCE APPROVED: MIS ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION FINAL ADOPTION STAFF RECOMMENDATION: Ratify warrants totaling $269,109.72 BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: Warrant Register #18 99 of 297 1/2 PAYEE JESSE ARROYO PEPE REYES PRODUCTIONS SAN DIEGO KIDS PARTY RENTALS STATE OF CALIFORNIA ACE UNIFORMS & ACCESSORIES INC ACE UNIFORMS & ACCESSORIES INC ACME SAFETY & SUPPLY CORP ALDEMCO ALL FRESH PRODUCTS ALLIED UNIVERSAL AMEDEE, W AMERICAN RADIO INC AMSTERDAM PRINTING & LITHO BENITEZ, MARIA BEST BEST & KRIEGER ATTNY LAW CALIFORNIA COMMERCIAL SECURITY CALIFORNIA ELECTRIC SUPPLY CEB CITY OF SAN DIEGO CLEAN HARBORS COMMERCIAL AQUATIC SERVICE INC COURTESY REFRIGERATION INC CSMFO CWEA SAN DIEGO DALEY & HEFT LLP DALEY & HEFT LLP DALEY & HEFT LLP DEPARTMENT OF TRANSPORTATION D-MAX ENGINEERING ECMS ESGIL CORPORATION FEDEX FERGUSON ENTERPRISES INC FIRE ETC GOODYEAR TIRE & RUBBER COMPANY GFOA GFOA HICKS, ROCIO HUTCHINSON, C INSTITUTE OF TRANSPORTATION JJJ ENTERPRISES KNOX SERVICES LASER SAVER INC LEXIPOL LLC MACHADO, R MCDOUGAL LOVE ECKIS MCDOUGAL LOVE ECKIS NAPA AUTO PARTS NATIONAL CITY ROTARY CLUB NATIONAL EMBLEM INC CALIFORNIA <__ -M'I.O1!11-.. L toV. n aaa DICORPQRjAT8D WARRANT REGISTER #18 10/31/2017 DESCRIPTION EVENT PHOTOGRAPHY / STATE OF THE CITY SINGING SERVICES / STATE OF THE CITY ASTROJUMP FOR TOWER OF TERROR / CSD SALES TAX LIABILITY FOR PERIOD JUL-SEPT UNIFORM FOR STAFF / NSD UNIFORM FOR STAFF / NSD SLOW PADDLES - TRAFFIC SUPPLIES FOOD / NUTRITION CENTER FOOD / NUTRITION CENTER FIRE FEE REFUND TRAVEL MILEAGE REIMBURSEMENT REMOTE SPEAKER MICROPHONE AEROSTAR STYLUS PEN RECRUITING REIMB / CITATION OVERPAYMENT LIABILITY CLAIM COST ELECTRONIC DOOR LOCK INSTALLATION / PW MOP 45698 ELECTRIC SUPPLIES / PW BOOKS / CITY ATTORNEY'S OFFICE DISPATCH SERVICES / FIRE CONTRACT SERVICES / ENG CHEMICAL SUPPLIES PURCHASES FOR POOL / PW 331442 REFRIGERATOR REPAIR / PW ADVERTISEMENT JOB RECRUITMENT / FINANCE WASTEWATER COLLECTIONS WORKSHOP / PW LIABILITY CLAIM COST LIABILITY CLAIM COST LIABILITY CLAIM COST HIGHWAY LIGHTING FOR FY 2018 PARADISE CREEK DAC PROJECT TURNOUT REPAIRS / PW PLAN CHECKS / BLDG GOVERNMENTAL PURPOSES OUTDOOR BI GRILL / PW CITRO SQUEEZE / FIRE TIRES FOR CITY FLEET FY 2018 ADVERTISEMENT JOB RECRUITMENT / FINANCE GAAFR REVIEW NEWSLETTER / FINANCE REFUND / VIOLATION DISMISSED TRAVEL REIMBURSEMENT / ENG ITE MEMBERSHIP 2018 FIRE AND SECURITY ALARM MONITORING / PW GOVERNMENTAL PURPOSES MATERIALS AND SUPPLIES / MIS SEPTEMBER SERVICE LEXIPOL / PD TRAINING REIMB WELLNESS IN THE WORKSHOP/ P[ LIABILITY CLAIM COST LIABILITY CLAIM COST MOP 45735 CHARGES / FIRE DUES FOR ROT = RODRIGUEZ STANDARD PAT 100 of 297 CHK NO DATE AMOUNT 331422 10/26/17 250.00 331423 10/26/17 150.00 331424 10/31/17 724.00 331425 10/31/17 870.00 331426 10/31/17 679.84 331427 10/31/17 215.49 331428 10/31/17 234.63 331429 10/31/17 1,916.96 331430 10/31/17 459.80 331431 10/31/17 400.00 331432 10/31/17 11.42 331433 10/31/17 427.32 331434 10/31/17 454.38 331435 10/31/17 40.00 331436 10/31/17 1,740.50 331437 10/31/17 145.00 331438 10/31/17 469.70 331439 10/31/17 573.67 331440 10/31/17 58,083.00 331441 10/31/17 944.69 10/31/17 819.21 331443 10/31/17 176.47 331444 10/31/17 275.00 331445 10/31/17 90.00 331446 10/31/17 2,270.90 331447 10/31/17 206.05 331448 10/31/17 70.00 331449 10/31/17 10,484.90 331450 10/31/17 18,472.50 331451 10/31/17 1,153.02 331452 10/31/17 32,192.62 331453 10/31/17 109.20 331454 10/31/17 6,252.04 331455 10/31/17 450.21 331456 10/31/17 800.01 331457 10/31/17 150.00 331458 10/31/17 50.00 331460 10/31/17 35.00 331461 10/31/17 13.91 331462 10/31/17 300.00 331463 10/31/17 1,490.00 331464 10/31/17 151.50 331465 10/31/17 59.76 331466 10/31/17 1,237.50 331467 10/31/17 131.39 331468 10/31/17 10,482.93 331469 10/31/17 1,179.69 331470 10/31/17 111.63 331471 10/31/17 675.00 331472 10/31/17 1,368.53 2/2 PAYEE NOBLE INDUSTRIAL SUPPLY CORP OFFICE SOLUTIONS BUSINESS PCS MOBILE PLAYCORE GAMETIME BIG TOYS PRO BUILD PROFORCE LAW ENFORCEMENT PRUDENTIAL OVERALL SUPPLY QUAL CHEM CORPORATION RIVERSIDE COMMUNITY ROBOTEX INC S & S WELDING SABALA, A SAN DIEGO GAS & ELECTRIC SAN DIEGO HYDRAULICS SAVMART PHARMACEUTICAL SERVICE SDG&E SEAPORT MEAT COMPANY SIRCHIE FINGER PRINT SMART & FINAL STAPLES BUSINESS ADVANTAGE STAPLES BUSINESS ADVANTAGE SUPERIOR READY MIX SWEETWATER AUTHORITY SYSCO SAN DIEGO INC TODD PIPE & SUPPLY LLC TSC GROUP INC TSI INCORPORATED U S BANK U S BANK URIBE, V WAXIE SANITARY SUPPLY WILSON, R Z A P MANUFACTURING INC WIRED PAYMENTS CITY NATIONAL BANK CALIFORNIA NATIONAL Cfl j ?AICORPQRAT8D WARRANT REGISTER #18 10/31/2017 DESCRIPTION HAND SANITIZER / PW HON NUCLEUS OFFICE CHAIR / CSD 2 TOUGHBOOK BATTERIES / MIS TRX WALL MOUNT AND FITNESS POSTER / CSD MOP 45707 GENERAL SUPPLIES - PW IMPACT SPONGES / PD MOP 45742 LAUNDRY- PW BATHROOM DORMANT - PARKS PW TUITION PUBLIC SAFETY HONOR GUARD / PD REPAIR OF ROBOT / PD STORM DRAIN GRATES TRAINING / PUBLIC SAFETY HONOR GUARD GAS & ELECTRIC UTILITIES / NUTRITION SEAL KIT -AUTO SUPPLIES PW NARCOTICS, MEDIC UNITS / FIRE STREETS DIVISION GAS & ELECTRIC UTILITIES FOOD / NUTRITION CENTER CALIBRATION, GAS METER / FIRE MOP 45704. SNACKS FOR TEEN CENTER / CSD MOP 45704. COPY PAPER FOR OFFICE / HOUSING MOP 45704. OFFICE SUPPLIES / AQUATIC CENTER COLD MIX ASPHALTS & TACK OIL / PW WASTEWATER DIVISION WATER UTILITIES FOOD / NUTRITION CENTER ELKAY WATER COOLER COMB KIT / PW LEASE / STATION 33 CLEAN & CALIBRATE GAS MASK TESTER CREDIT CARD EXPENSES / PD CREDIT CARD EXPENSES / PD CASH IN LIEU REIMBURSEMENT JANITORIAL SUPPLIES / FIRE MEDIC FEE REIMBURSEMENT 15- 12X18 BLANK SIGN ALUMINUM- SIGNS PW LEASE PAYMENT #30 ENERGY PROJECT CHK NO DATE AMOUNT 331473 10/31/17 567.90 331474 10/31/17 482.85 331475 10/31/17 330.00 331476 10/31/17 1,616.59 331477 10/31/17 188.23 331478 10/31/17 4,177.49 331479 10/31/17 181.10 331480 10/31/17 473.25 331481 10/31/17 138.00 331482 10/31/17 1,109.78 331483 10/31/17 212.06 331484 10/31/17 379.87 331485 10/31/17 413.26 331486 10/31/17 140.02 331487 10/31/17 53.70 331488 10/31/17 29,725.84 331489 10/31/17 881.09 331490 10/31/17 183.64 331491 10/31/17 71.66 331492 10/31/17 1,344.63 331493 10/31/17 150.16 331494 10/31/17 2,011.79 331495 10/31/17 2,888.84 331496 10/31/17 2,496.52 331497 10/31/17 6,101.45 331498 10/31/17 2,302.78 331499 10/31/17 732.39 331500 10/31/17 2,928.29 331501 10/31/17 1,179.10 331502 10/31/17 329.27 331503 10/31/17 1,437.82 331504 10/31/17 242.50 331505 10/31/17 487.38 A/P Total 226,008.62 262116 10/25/17 43,101.10 GRAND TOTAL $ 269,109.72 101 of 297 Certification IN ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE HEREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS AND DEMANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. MARK ROBERTS, FINANCE LESLIE DEESE, CITY MANAGER FINANCE COMMITTEE RONALD J. MORRISON, MAYOR -CHAIRMAN ALBERT MENDIVIL, VICE -MAYOR ALEJANDRA SOTELO-SOLIS, MEMBER MONA RIOS, MEMBER JERRY CANO, MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER IS AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY THE CITY COUNCIL ON THE 5"' OF DECEMBER 2017. AYES NAYS ABSENT 102 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 103 The following page(s) contain the backup material for Agenda Item: Public Hearing to Consider Proposed Adjustments to Sewer Service Charges in accordance with Proposition 218 requirements, and the adoption of a Resolution of the City Council of the City of National City approving the proposed rate adjustment. (Engineerin 103 of 297 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 5, 2017 AGENDA ITEM NO. ITEM TITLE: A Public Hearing to Consider Proposed Adjustments to Sewer Service Charges in accordance with Proposition 218 requirements, and the adoption of a Resolution of the City Council of the City of National City approving the proposed rate adjustment. PREPARED BY° Jose Lopez, Assistant Engineer - Civil PHONE: 619-336-4312 EXPLANATION: See attached. FINANCIAL STATEMENT: ACCOUNT NO. NJA ENVIRONMENTAL REVIEW: NfA ORDINANCE: INTRODUCTION: DEPARTMENT: Enginee APPROVED BY: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt a resolution approving the proposed rate adjustment. 1 BOARD ! COMMISSION RECOMMENDATION: NfA ATTACHMENTS: 1. lExplanation 2. Notice of Public Hearing to Consider Proposed Adjustments to Sewer Service Charges. 3. Background Report wl proposed rates 4. Sewer Rate Stuecdy 5. Resolution I 104 of 007 Explanation On October 3, 2017, the City Council of the City of National City 1) accepted and filed the background report and Sewer Rate Study and 2) directed staff to mail out Notice of P�ihlic Hearing in accordance with Proposition 218 requirements. The Notice of Public hearing was mailed out, with a public hearing date of December 5, 2017 at 6:00 PM. Upon conclusion of the public hearing to consider the proposed adjustments to sewer service charges, and pursuant to their consideration, City Council will open a new Public Hearing for the introduction of an Ordinance establishing the approved sewer service charges for fiscal years 2018-19, 2019-20, 2020-21, 2021-22, and 2022-23. If approved, the rate adjustment will become effective on customers' 2018/19 property tax bills. Also, in order to confirm sewer -related revenues have been collected and spent appropriately prior to bringing forward consideration for a sewer rate increase, the City engaged The Pun Group ('the auditor) to perform agreed -upon procedures to review the calculation and billing of sewer -related charges and the revenue and expenditure transactions within the Sewer Service Fund. The procedures, which were performed on calculations and transactions occurring in fiscal years 2012-13, 2013-14, 2014-15, 2015- 16, and 2016-17, are: 1. Review of revenues derived from sewer -related charges to determine whether the revenues were recorded and deposited into the Sewer Services Fund in accordance with NCMC § 14.04.010 B; 2. Review of sewer -related charges to determine whether the charges were correctly calculated and billed to the customers; 3. Review of Sewer Service Fund expenditures to determine whether they were properly recorded, and whether funds were spent for the specific purposes established by NCMC § 14.04.010 C. The report issued by the auditor states that, for the calculations, billings, and transactions reviewed for the period, no exceptions were found to the accurate calculation and biding of sewer -related charges, correct recording of transactions. or nrnnOr enran rlinn of nierer Qro-virc, Pi Irsrl rnnniae While the City Council will take action on the proposed rate adjustments as a part of this public hearing, City Council wi]I again take action to adopt the Ordinance at the regularly scheduled meeting of December 19, 2017. It is only by adoption of the Ordinance, that the City can assess the proposed rate adjustments. 105 of 297 ;c*UFOkot.1:A +�-e omeRroBierzli NOTICE OF PUBLIC HEARING to Consider Proposed Adjustments to Sewer Service Charges Tuesday, December 5, 2017, 6:00 p.m. Proposition 218 Pursuant to Article XIIID of the California Constitution and the Proposition 218 Omnibus Implementation Act, the City of National City (the "City) hereby gives notice that a public hearing will be held on December 5, 2017, at 6:00 PM, or as soon as possible thereafter as the matter can be heard, at the regularly scheduled City Council meeting. The public hearing will be held in the Council Chamber of the Civic Center, located at 1243 National City Boulevard, National City, California. Upon conclusion of the public hearing, the City Council will consider a proposed increase to the cost the City charges for sewer service for Fiscal Year 2018/19 through 2022/23. If approved, the rate_ adjustment will become effective on customers' 2018/19 property tax bills. For more detailed information on how the sewer rates were calculated, copies of the NV5 rate study analysis (see below) are available at http:/iwww.nationaicityca.govlgovernmentienqineerinq-public- works/engineering-division/sewer-service or at the Engineering / Public Works Department, located at 1243 National City Boulevard, National City, California, 91950, Telephone No. (619)-336-4580. Reason for Proposed Rate Increase The City is provided wastewater treatment and disposal services by the City of San Diego's Metropolitan Wastewater System ("Metro"). The proposed rate adjustments will allow the City to collect sufficient revenue so the City may continue providing sewer service to customers in the face of sharply increasing operating costs from Metro to fund the Pure Water Program. The proposed rate adjustments will also enable the City to pay for capital improvements that are essential for operating the sewer system in a safe and financially prudent manner. Revenues derived from the City's sewer service charges, and any adopted adjustments described in this notice, will be used solely for the actual and necessary expenses of providing sewer service to customers. The City is prohibited by law from making a profit on sewer service. Engineering Q P 1 :., A l 1 Department 1243 National City Boulevard, National City, CA 91950-4301 (619) 336-4380 Engineering * (619) 336-4580 Public Works * Fax (619) 336-4397 www, nation alcityca.gov 106 of 297 The City elected to conduct a comprehensive review of its sewer rates for all users to ensure the long term stability of its sewer services. The new proposed rate increases are based on a September 2017 rate study titled "City of National City Sewer Rate Study" ("Study") conducted by NV5, a well -respected engineering and consulting firm. NV5 considered all sewer -related factors described in this notice, in addition to other, more specific information described in the Study, in conducting their sewer rate analysis. The Study, and its underlying rate methodology, is available at htto://wwv+.nationalcitvca.govfQovernmentlencineerin i-publiic-works/enaineering- division/sewer-service. Copies of the Study are also available at the Engineering/ Public Works Department at the Civic Center. The Study's underlying rate, methodology will be discussed in more detail at the December 5th public hearing. Protest Procedure The property owner of record may file a written protest to the proposed rate adjustment. Property owners do not have to attend the public hearing in order to file a protest. Protests may be mailed to: City Clerk, 1243 National City Boulevard, National City, California 91950. If protesting by mail, please write on the front of the envelope that the enclosed letter of protest is for the proposed sewer rate adjustments. All protests must be received before the close of the public comment portion of the public hearing on December 5, 2017. Any protests received after that date and time, even if postmarked on or prior to that date, will not be counted. Any protest received via o : riai!, fax, or other electronic means shall also not be counted. The signature on the protest must be that of the property owner of record and be an original signature. Protests with copies of signatures will not be counted. Oral comments do not qualify as a protest, unless accompanied by a written protest. While customers who live on property owned by others may attend the public hearing, the City will only count written protests filed by property owners. Only one valid protest per parcel will be counted. In order to be counted, each protest must contain the following: 1. State that the property owner of record does not agree with the proposed rate increase. Engineering a Public Works Department 1243 National City Boulevard, National City, CA 91950-4301 (619) 336-4380 Engineering * (619) 336-4680 Public Works * Fax (619) 336-4397 www.nationalcityca.gov 107 of 297 Q : POR:lbl. Al � rivcoat.o.sxti) 2. Identify the location of the parcel by street address, assessor's parcel number (APN) listed on the address label of your envelope, or City account number. 3. Provide the printed name and originai signature of the property owner submitting the protest. 4. If you wish to protest and you own multiple properties, you may file one valid protest for each parcel that you own. Only one protest will be counted per parcel. For example, if you own five parcels and you wish to file protests for each of your properties, you must file five separate protests. 5. If you wish to protest and your parcel is owned by more than one person, or by a corporation or other legal entity, you may only file one protest for that parcel. Proper documentation must be provided showing that the person who signs the protest has the authority to sign on behalf of the other owners, corporation, or legal entity. 6. If the name of the property owner was not shown on San Diego County's last equalized assessment roll as the owner of record, you must provide the City with a certified copy of a recorded deed. Individuals with disabilities, who require reasonable accommodation under the Americans with Disabilities Act in order to participate in the public hearing, should contact the City Clerk's Office as far in advance of the public hearing as possible. Proposed Increases The City last adjusted sewer service charges in FY 2006. The NV5 Study showed that, over the next five years, current sewer service revenues will not meet the increasing cost of City operating and capitai expenses. The City system of sewer service charges meets regulatory and industry standards and the current rate schedule reflects the proper elements of a cost -of -service -based rate structure. No structural changes to the current system of charges will be made. Based upon the Study, rate increases will be considered for each of the City's four distinct sewer customer groups: (1) single-family residential; (2) multi -family: (3) mobile home parks; and (4) commercial/industrial. The City maintains a specific sewer charge formula for each of these four customer groups. Single family, multi -family, and mobile home customers are billed flat rates based on a system of equivalent dwelling units established for each of these three customer groups. Commercial/industrial users are placed into one of five rate categories Enginee ing & Public Works Department 1243 National City Boulevard, National City, CA 91950-4301 (619) 336-4380 Engineering * (619) 336-4580 Public Works * Fax (619) 336-4397 www.nationalcityca.gov 108 of 297 g ► : ORNF4 based on (1) their respective sewage strengths, and (2) 90% of the users' total water usage from the prior year. The following rate table contains the recommended sewer service charges that the City Council will consider for adoption at the public hearing: User Class [ Current 2029 2020 2022 t 2022 2023 Residential: $ Per Month Single Family $ 32.08 $ 35.23 1 $ 38.68 $ 42.47 $ 46.61 $ 51.18 Multi-family/Condo $ 25.00 $ 27.48 $ 30.17 $ 33.13 $ 36.36 $ 39.92 Mobile Homes $ 19.50 $ 21.49 $ 23.60 $ 25.91 $ 28.43 $ 31.22 Non -Residential: $ Per HCF Commercial - Low $ 3,03 $ 3.61 $ 3.97 $ 4.35 $ 4.78 $ 5.25 Commercial - Medium Low $ 3.12 $ 3.89 $ 4.33 $ 4.73 $ 5.13 $ 5.66 Commercial- Medium $ 4.09 $ 4.69 $ 5.37 $ 5.76 $ 6.13 $ 6.80 Commercial -Medium High $ 4.90 $ 5.48 $ 6.40 $ 6.80 $ 7.12 $ 7.95 Commercial - High $ 6.12 $ 6.82 $ 8.14 $ 8.55 $ 8,79 $ 9.88 Pass -Through Costs The above -proposed rate table is based, in part, on projections provided by Metro. The City will not pass through to customers any increases to wholesale treatment costs from Metro that exceed the amounts listed in the rate table above. The City will provide customers at least 30 days' notice before the effective date of any adjustment reflected lit the rate table above. If you have any questions about this process, or this notice in general, please contact the Engineering 1 Public Works Department at (619)-336-4580. Engineering & Public Works 'Department 1243 National City Boulevard, National City, CA 91950-4301 (619) 336-4380 Engineering * (619) 336-4580 Public Works * Fax (619) 336-4397 www.nationalcityca.gov 109 of 297 Background Report National City provides wastewater service to approximately 17,000 customers within the incorporated area of the City of National City. It owns and operates approximately 100 miles of pipeline, 2,000 manholes, and 2 lift stations/force mains. The City is responsible for collecting and conveying wastewater flows originating within the City to the City of San Diego's Point Loma Treatment Plant for treatment and disposal. The City's primary goals are operating the sewerage system safely and efficiently while meeting the needs of their customers. To meet these goals, the City undertakes routine cleaning, inspections, and repairs and rehabilitates its facilities as needed. The wastewater system operates in an area subject to strict regulatory oversight by Federal and State agencies such as the U.S. Environmental Protection Agency (USEPA) and the California State Water Resources Control Board (SWRCB). The City must comply with a multitude of laws including, but not limited to, State Wastewater Discharge Requirements (WDRs). Complying with these regulations and resulting mandates contributes to a large share of the cost burden on the City's system. The City of National City is one of thirteen participating agencies (PAs) who send their wastewater to the City of San Diego Metropolitan Sewage Treatment System (Metro) for treatment and disposal. Along with the other PA's, the City entered into the Regional Disposal Agreement with San Diego in 1998. Due to positive financial negotiations with San Diego since that time and especially the establishment of the "Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage" during FY 2010 the City has enjoyed stable annual billings for the last 8 years from the City of San Diego. However, in 2015 the City of San Diego initiated a multi -billion dollar public works project entitled the Pure Water Program which will provide the double benefit of "secondary equivalency" to San Diego's wastewater customers including National City as well as a significant new potable water supply for the City of San Diego. In September 2016, the City of San Diego provided the PAs with a range of annual costs from FY 2015 through FY 2022 for Phase I of the Pure Water Program. These annual cost increases began with FY 2018 (current fiscal year) and are the basis for establishing the San Diego portion of the revenue requirement developed by this Study. The City of National City customers enjoy some of the lowest sewer service charges in the Metro System. The City last adjusted sewer service charges through a 2003 Rate Study and rates were last increased in FY 2006. FY 2018 charge is 38% lower than the average Metro PA rate of $50.82 per month. However, the City's increased internal CIP requirements and the costs associated with the Pure Water Program require that the City adjust their sewer rates for the next five years at an average of 9.8% per year. The City's sewer utility was evaluated on a "stand-alone" basis. That is, no subsidies between the utility or other City funds occur. By viewing the utility on a stand-alone basis, the need to 110 of 297 adequately fund both operations and maintenance (O&M) and capital infrastructure (CIP) must be balanced against the rate impacts on utility customers. A comprehensive process was used to review the City's rates and projected expenses. Background information on capital needs was available through the CIP Needs Assessment, which was presented at the City Council Meeting of February 28, 2017. The revenue requirement analysis revealed that several significant financial changes have occurred since the City's 2003 rate study and subsequently adopted sewer user rates. The significant changes are: 1. The Wastewater Master Plan contains an annual capital requirement of $2 million for capital projects for the next 9 years. 2. The planning phase of the City of San Diego's Pure Water Program have begun and during FY 2018 to FY 2023 additional Metro costs are anticipated for Phase 1 of this program. City of San Diego staff has identified the increased funding level for the participating agencies from the 2010 adopted Protocol level of $65 million to $128 million per year over the next four -years. The City's portion of this budget is currently 7.4%. National City's increased funding level for the Pure Water Program is included in this rate case. The largest component of the City of National City's revenue requirement is the costs associated with transportation, treatment and disposal of the City's wastewater by the Metro facilities. A summary of the projected City collection system O&M, CIP and Metro expenses, compared to current and proposed sewer rates, are included in the City's rate case and summarized in the charts below. 111 of 297 20, 000,000 15,000,000 10,000,000 5,000,000 0 -5,000,000 -10,000,000 Sewer Service Fund Revenue Projections vs Expenses Without Rate increases (FY 2018 - FY 2023) FY18 FY19 FY20 FY21 FY23 Sewage Transport and Treatment (MWWD) National City Sewer CIP —Sewer Fund Balance (without rate increases) r — National City Maintenance & Operations Projected Revenues (without rate increases) 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Sewer Service Fund Revenue Projections vs Expenses With Rate Increases (FY 2018 - FY 2023) FY18 FY19 FY20 min Sewage Transport and Treatment (MWWID) National City Sewer CIP —Sewer Fund Balance (with rate increases) FY21 FY22 FY23 National City Maintenance & Operations —Projected Revenues (with rate increases) 112 of 297 Based on cost of service and projected revenue requirements, the City proposes new sewer service charges. The following table shows the proposed sewer charges for FY 2019 through FY 2023 and compares them to existing charges: User Ciass Current 2019 2020 2021 2022 2023 Residential: $ Per Month Single Family $ 32.08 $ 35.23 $ 38.68 $ 42.47 $ 46.61 $ 51.18 Multi-family/Condo $ 25.00 $ 27.48 $ 30.17 $ 33.13 $ 36.36 $ 39.92 Mobile Homes $ 19.50 $ 21.49 $ 23.60 $ 25.91 $ 28.43 S 31.22 Non -Residential: $ Per H-1CF Commercial Low $ 3.03 $ 3.61 $ 3.97 $ 4.35 $ 4.78 $ 5.25 Commercial - Medium Low $ 3.12 $ 3.89 $ 4.33 $ 4.73 , $ 5.13 $ 5.66 Commercial - Medium $ 4.09 $ 4.59 $ 5.37 $ 5.76 $ 6.13 $ 6.80 Commercial - Medium High $ 4.90 $ 5.48 $ 6.40 $ 6.80 $ 7.12 $ 7.95 Commercial - High $ 6.12 $ 6.82 $ 8.14 $ 8.55 $ 8.79 $ 9.88 The City should also establish a definitive reserve policy to protect the financial integrity of our sewer enterprise fund. City staff proposes a reserve policy that meets industry standard guidelines in establishing formal reserve policies as well as the City's needs for financial stability and potential exposures to external forces which could require unplanned O&M or capital expenditures. The establishment of this reserve has been integrated into the projected revenue requirements for the rate case. The following chart presents a financial picture of the Sewer Enterprise Fund over the next five fiscal years based on the inclusion of proposed sewer rate increases (revenues), total expenses, and operational and capital reserves. 15,000,000 1O nn(Tlnn s,no0,000 0 (5,000,000) SewerService Fund with Establishment of Reserves With Ith IR%LLL. Yl creasi..: (FY £.01 FY 2023) FY18 FY19 NIM Projected Revenues (with rate increases) 'Recommended Reserves Use / Replacement of Reserves FY20 FY21 FY22 FY23 Total Expenses Sewer Fund Balance (afterestablishment of reserves) 113 of 297 Long Range Financial Plan: Establishment & Use of Reserves Table 5 Total Revenue $ 6,957,939.32 $ 7,881,478.71 $ 8,696,609.30 $ 9,521,184.3= 1 $10,409,369.16 $ 11,443,79261 12 rote fxpouts 1 $ 7,473,749.71 $ 10,221,478.71 5 12,671,609.30 511.866,184.3.- $ 9,794,369.16' $ 10,148,792_61 15 Fund Balance Prlort0 Reserves $15,014,450.61 $ 12,574,450,51 $ 8,545,450,51 $ 5,154,450.61 $ 5,955,450.51 $ 0,2,54,450.61 14 Resarve Targets: 15 0peret:ans.+Cash Sow $ 3,736,874 86 $ 4,110,739 36 $ 5,335,804 65 $ 4 933,032 17 " $ 3,897,184 58 $ 4,074.396 31 16 Metro Cash Flow $ 4,400,000 00 $ 4,400,000-00 $ 4,4 },003.03 $ 4,403,000.0_ i $ 4,4.00,00000 $ 4,400,000.00 17 Emergency/Nat o:sesiet $ 1,245,624 95 $ 1,370,245.45 $ 1,778,601.55 $ 1,644,364 C.73 $ 1,299,0615.3 $ 1,358,13210 18 Camitai Exaansion Reserve $ 1..000,000 00 $ 1,000,0�Z0 00 $ 1,030,001.00 $ 1,031:000.0: l $ 1,000,000-02 $ 1,000,000.00 19 Capital ReplatementReserve $ 1,6^3,000-00 $ 1,061 ,Coo Da 5 1,003003 00 $ 1,00^..,il.3.0 I $ 1,• 03/333 l 5 1,000,000.00 20 Total Recommended Reserves $11,382,499 81 $ 11,883,985 81 5 13,514,406.20 . S12,977,456.23 4 $11,556,246 11 $ 11,832,528 41 21 Fund Balance Over/jUnde)rTarget $ 3,631,950.80 $ 793,464.80 $ (4,814,955.5.9) $ (6,623,005.62': $ i4,626,795.50) $ (3,568,077.80) 22 itke)(ReplecementofResolves $ i515,810.39) $ (2,540,000.001 $ [5,975,090.90} ${2,945a,000.03) $ 615,000.00 $ 1,295,000.00 Footnote: (Use)/Replacement of Reserves — A negative value indicates use of reserves required to offset total expenses. A positive value indicates replenishment of reserves based on revenues exceeding expenses. The following chart represents a monthly sewer rate comparison for PA's before and after the FY 2019 proposed rate increase. With the rate increase for FY 2019, National City would still have the lowest sewer rate among all cities in San Diego County. 390 Si I 380 470 480 Ss0 6a0 430 320 Sto S- �60� pp�} JAe Cam- QF cpe,.p '+` .. „ , , Monthly Sewer Rate Comparison for Participating Agencies in San Diego Metro System Based on 7 units of water and 3/4inch Residential matersixe for sewer billings established by lartuary 2018 Fiat Sewer Rate 41 Water Consumption Based Sewer Rate Q National City Rate 114 of 297 City of National City Sewer Rate Study September 2017 Submitted To: City of National City 1243 National City Boulevard National City, CA 91950-4301 Submitted ty: NV5 15092 Avenue of Science, Suite 200 San Diego, CA 92128 858.385.0500 115 of 297 City of National City Sewer Rate Study September 2017 Prepared for. City of National City 1243 National City Boulevard National City, CA 91950- t3 1 Prepared by: NV5, Inc. 15092 Avenue of Science, Suite 200 San Diego, CA 92128 858.385.0500 116 of 297 Contents 1.0 Executive Summary 3 1.1 Findings 4 1.2 Recommendations 5 2.0 Introduction 11 2.1 Background: City of National City 11 2.2 Background: City of San Diego Metropolitan Sewage Treatment System 12 2.3 Rate Study Summary 13 3.0 Wastewater Rate Study 14 3.1 Overview of the Sewer Service Charge Update Process 14 Tables Table 1-1— Sewer Enterprise Fund Long Range Plan without Revenue Adjustments (Status Quo) 4 Table 1-2 — Recommended Annual Revenue Adjustment 5 Table 1-3 - Sewer Enterprise Fund Long Range Plan with Recommended Revenue Adjustments 6 Table 1-4: Recommended Annual Sewer Service Charges 7 Table 2-1 Summary of Low and High Metro Cost Projections 12 Table 3-1: City of National City Revenue Requirements 15 Table 3-2: City of National City Long Range Financial Plan 18 Table 3-3: Summary of Current Users and Estimated Sewer Flow 19 Table 3-4: Comparison of Current Versus Proposed Sewer User Rates 20 Figures Figure 1-1 Metro Member Agencies Sewer Rates Comparison 8 Figure 2-1 Sewer Rate Comparison for Participating Agencies in San Diego Metro System ..............13 1 Figure 3-2 Major Cost Components of City of National City's FY 2019 Revenue Requirements 16 Figure 3-3 Components of FY 2019 Single Family Monthly Rate 20 NV5 Figure 3-1 Overview of the Comprehensive Rate Study Analysis City of National City — Sewer Rate Study 2017 117 of 297 Figure 3-4 Metro Member Agencies Sewer Rate Comparison 21 Appendices Appendix A — Wastewater Rate Study Abbreviations AWWA American Water Works Association BMP Best Management Practices as Prescribed by the State of California BOD Biochemical Oxygen Demand — A Measure of Sewage Strength CIP Capital. Improvement Program or Plan EDU Equivalent Dwelling Unit ENR-CCI Engineering News Record Construction Cost Index FY Fiscal Year Ending June 30 GPD Gallons per Day HCF Hundred Cubic Feet Metro City of San Diego Metropolitan Wastewater System mg/1 Milligrams per Liter O&M Operations and Maintenance PA Participating Agency in the San Diego Metro System cS Total Suspended Solids — A Measure of Sewage Strength US EPA U.S. Environmental Protection Agency City of National City — Sewer Rate Study 2017 NVS 118 of 297 I.0 Executive Summary This report was prepared for the City of National City (City) to document the development of a wastewater multi -year financial plan, cost of service analysis, and rate design for the City (rate case). The specific goals of the study were to: = Evaluate the adequacy of projected revenues under existing sewer service charges to meet projected revenue requirements; • Develop a wastewater cost of service and rat:. model for the City covering a five-year study (Fiscal Year 2019 through Fiscal Year 2023) period for both ongoing operations and planned capital improvements; • Allocate the projected fiscal years revenue requirements to the various customer classes in accordance with the proportionate share of their wastewater contributions; • Develop a five-year sewer service charge program that produces revenues adequate to meet financial needs of the City for both their required funding of the City of San Diego's Pure Water Program and the City's operations and capital needs, while recognizing customer costs of service, and local and state legal and policy considerations such as California Constitution Articles XIII C and D (Proposition 218), and Proposition 26; and • Recommend appropriate reserve levels for operations and capital needs. City of National City — Sewer Rate Study 2017 NV5 119 of 297 1.1 Findings During the course of our analysis in relation to the specific goals of the study we made the following findings: 1 The City of National City last adjusted the sewer service charges in FY 2006. 2. Wastewater service charge revenues at current levels will not be sufficient over the next five years to meet the increasing cost of City operating and capital. expenses without negatively affecting fund balance levels'. In the absence of annual rate adjustments, projections show that the City would deplete the Net Fund Balance during FY 2022. Line 23 on Table 1-1 on the next page illustrates the projected financial picture without recommended sewer service charge adjustments, and shows that the City's Fund Balance falls below recommended operating reserve target levels by FY 2019 and falls into a negative cash position by FY 2022. i The term "fiend balance" refers to the remaining amounts available after short-term liabilities (monies owed) are paid off with the agency's available cash and other financial resources (such as receivables). The fund balance includes reserved and unreserved components. For the purposes of this Study, this term refers to "available cash excluding reserved monies" and the term "fund" refers to either the Operating or Capital account in which these monies reside. Table 1-1— Sewer Enterprise Fund Long Range Plan without Revenue Adjustments (Status Quo) FYE 2018 FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 1 Beginning Balance $15,530,261.00 $ 15,014,450.64 $11,750,911.22 $ 6,037,241.24 $ 1,128,996.22 $ (1,707,433.63) 2 Revenue: 3 Non -Operating Revenue $ 15,000.00 $ 15,000.00 $ 15,000.00 $ 15,000.00 . $ 15,000.00 $ 15,000.60 4 User Fees $ 6,942,939.32 $ 6,942,939.32 $ 6,942,939.32 $ 6,942,939.32 1 $ 6,942,939.32 $ 6,942,939.32 5 rota/ Rovenus 6,957,939.32 $ 6,957,939.32 $ 6,957,939.32 $ 6,957,939.32 $ 6,957,939.32 $ 6,957,939.32 6 Operations Expenses: ,$ I 7 Collection System Maintenance $ 1,935,415.00 $ 2,015,522.43 $ 2,999,213.62 $ 2,184,253.96 $ 2,263,206.29 $ 2,34t,467.45 8 bar Metro end JPA costs - Low Projection $ 5,538,334.71 , $ 6,205,956.28 $ 8,572,395.68 $ 7,681,930.38 $ 5,531,162.87 $ 5,607,325.16 . 10 Tote Operations Expanses $ 7,473,74.9.71 $ 8,221,478.71 $ 10,671,609.30 $ 9,866,184.34 $ 7,794,369.16 $ 8,148,792.51 jai 113 Collecton System C:1P $ - $ 2,000,000.00 $ 2,600,009.0D $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 114 Total Expenses $ 7,473,749.71 $ 10,221,478.71 $ 12,671,809.30 $ 11,868,184.34 $ 9,794,369.16 $ 10,148,792.61 115 Fund Balance PY.or to Reserves $ 15,014,450.51 $ 11,750,911.2E $ 6,637,241.24 $ 1,128,995.22 $ {1,707,433.63) $ (4,896,288.92) 1 16 Reserve Targets: 17 Ooerations/Cash F nr $ 3,736,874.86 $ 4,110,739.36 $ 5,335,894.65 $ 4,933,092.17 $ 3,897,184.56 $ 4,074,396.31 18 MetroCael Flow $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 119 Emrreeny04a1. Disaster S 1,245,624.95 $ 1,370,246.45 $ 1,778,601.55 $ 1,644,364.06 $ 1,299,061.53 $ 1,358,132.10 20 Capital Ercension Reserve S 1,000,000.00 $ 1,500,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,900,000.00 $ 1,000,000.00 21 CepilslRepiacementReserve S 1,000,000.00 $ 1,003,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,900,000.00 $ 1,000,000.00 22 Total Recommended Reserves 1 $ 11,382,499.61 $ 11,880,985.61 $ 13,514,406.20 $ 12,977,456.23 $ 11,696,246.11 $ 11,632,528.41 P j23 Fund Saiance Overiji''7der) $ 3,631,950.80 $ ('30,074.59)1 $ (7,477,164.96) $(11,846,460.01) $(13,303,679.73) $ {16,730,615.32) i Reserve target , The City does not have a formal reserve policy for their operations or capital funds. City of National City — Sewer Rate Study 2017 NVS 120 of 297 4. The City does not have a mechanism to pass through wholesale treatment costs from the City of San Diego to customers should those costs rise beyond projections in the cost of service model, or beyond future year projections. 5. The City has an adequate system of sewer service charges to meet regulatory and industry standards; and their current rate schedule reflect the proper elements of a cost of service based rate structure. Thus we are not recommending any structural changes to the current system of charges. 1.2 Recommendations The following lists NV5, Inc.'s (NV5) recommendations to address the xfiindings'.isted above: 1. Per the cost -of -service analysis contained within this report, NV5 recommends City wastewater service charges be adjusted to reflect current costs of providing sewer service to customers within the City. This recommendation includes adjusting total revenue from rates by 9.8 percent per year beginning in FY 2018 and ending in FY 2023 as shown in Table 1-2. Table 1-2 — Recommended Annual Revenue Adjustment Fiscal Year FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Revenue Adjustment Effective Month 9.8% July 9,8% July 9.8% July 9.8% July 9.8% 9.8% July July Based on the cost of service analysis, revenue adjustments per customer class will vary, however, in total, the City requires 9.8 percent more revenue from customer rates each year. Should the City approve these rate adjustments, the projected financial picture of the City should stabilize by FY 2022 as demonstrated in Table 1-3, Line 22. City of National City — Sewer Rate Study 2017 5 NV5 121 of 297 Table 1-3 - maeVI/ er EBiterprise Fund Long Range Plan with Recommended Rever�ue Adjustments FYE 2018 NE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 1 Beginning Balance $ 15,530,761.0C $ 15,014,450,61 $ 12,674,450.61 $ 8,699,450.61 5 6,354,450.61 $ 6,969,450.61 2 Revenue: 3 Non -Operating Revenue $ 15,000.00 $ 15,000.00 $ 15,000.00 $ 15,000.00 S 15,000.00 $ 15,000.00 4 User Fees $ 6,942,939.32 5 7,866,478.71 $ 8,681,609.30 $ 9,506,184.34 .5 10,394,369.16 $ 11,428,792.61 5 TotalReerenve .5 6,957,939.32 $ 7,881,478:71 $ 8,696,609.30 $ 9,521,184.34 510,409,369.16 $ 11,443,792.61 6 rOperationsExpenses: 7 Collection System Maintenance $ 1,935,415.00 $ 2,015,522.43 $ 2,099,213.62 $ 2,184,253.56 $ 2,263,206,29 $ 2,341,467.45 8 Metro and JPA costs - Low Projection $ 5,53B,334.71 $ 6,205,956.28 $ 8,572,395.68 $ 7,681,930.38 $ 5,531,162.87 $ 5,807,325.16 9 Total Operations Expenses $ 7,473,749.71 $ 8,221,4.78.71 $ 10,671,609.30 $ 9,866,184.34 $ 7,794,369.16 $ 6,148,792.61 10 Capital Improvement Program: 11 Collection System CIP $ - $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 12 Tata/Expenses $ 7,473,749.71 $ 10,221,478.71 $ 12,671,609.30 $ 11,866,184.34 $ 9,794,369.16 $ 10,148,792.61 13 Fund Balance Prior to Reserves $15,014,450.61 $ 12,674,450.61 $ 8,699,450.61 $ 6,354,450.61 $ 6,969,450.61 $ 8,164,450.61 ' 14 Reserve Targets: 15 Operations/Cash Flow $ 3,736,874.86 $ 4,110,739.36 $ 5,335,804.65 $ 4,933,092.17 $ 3,897,184.58 $ 4,074,396.31 16 Metro Cash Flow $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 17 Emergency/Nat. Disaster $ 1,245,624.95 $ 1,370,246.45 $ 1,778,601.55 $ 1,644,364.06 $ 1,299,061.53 $ 1,356,132.10 18 Capital Expansion Reserve $ 1,000,000.00 $ 1,000,000,00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000,00 19 Capital Replacement Reserve $ 1,000,000.00 $ 1,000,01.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 20 Total Recommended Reserves $ 11,382,499.81 $ 11,880,985.61 $ 13,514,406.20 $12,977,456.23 S 11596,246.11 $ 11,832,528,41 21 Fund Balance Over/{Unde)rTarget $ 3,631,950.80 $ 793,464.80 $ (4,814,955.59) $ {6,623,405.62) $ (4,626,795.50) $ (3,568,077,80) 22 (Use)/Replacement of Reserves $ (515,810.39) $ (2,340,000.00) $ (3,975,000.00) $(2,345,000.00) $ 615,000.00 $ 1,295,000.00 City of National City — Sewer Rate Study 2017 NV5 122 of 297 2. Based on cost of service and projected revenue requirements the City should adopt the following sewer service charges. Table 1-4 show s the proposed sever charges for FY 2019 through FY 2023 and compares them to existing charges. Table 1-4: Recommended Annual Sewer Service Charges User Class Current 2019 2020 2021 2022 2023 Residentiai: $ Per Month Single Family $ 32.08 $ 35.23 $ 38.68 $ 42.47 $ 46.61 $ 51.18 Multi-family/Condo $ 25.00 $ 27.48 $ 30.17 $ 33.13 $ 36.36 $ 39.92 Mobile Homes $ 19.50 $ 21.49 $ 23.60 $ 25.91 $ 28.43 $ 31.22 Non -Residential: $ Per HCF Commercial - Low $ 3.03 $ 3.61 $ 3.97 $ 4.35 $ 4.78 $ 5.25 Commercial - Medium Low $ 3.12 $ 3.89 $ 4.33 $ 4.73 $ 5.13 $ 5.66 Commercial - Medium $ 4.09 $ 4.69 $ 5.37 $ 5.76 $ 6.13 $ 6.80 Commercial - Medium High $ 4.90 $ 5.48 $ 6.40 $ 6.80 $ 7.12 $ 7.95 Commercial - High $ 6.12 $ 6.82 $ 8.14 $ 8.55 $ 8.79 $ 9.88 City of National City - Sewer Rate Study 2017 NV5 123 of 297 Figure 1-1 summarizes all San Diego Metro Member Agencies comparative sewer user rates based on 7 HCF of water usage/sewer flow and a residential monthly base fee. It should be noted that the rates shown are those effective July 1, 2017. The figure also includes the City's current monthly rate as well as the proposed FY 2019 rate of $35.23 per EDU per month, The City's first proposed rate adjustment will not begin until July 1, 2018. By that time the majority of these rates will be 5% to 10% higher as all agencies except San Diego either have adopted current rate cases or are in the process of updating their current rate cases to phase in the required Pure Water Program costs. Even with the proposed 5-year rate adjustments National City will still enjoy some of the lowest rates among the users of the San Diego Metro System. The proposed FY 2019 single family rate will be as low as 35.23 which is 37% lower than the existing (FY 2018) average Metro member agency rate of $50.82. $90 $70 $60 $50 $40 $30 3S2fl $10 Figure 1-1 Metro Member Agencies Sewer Rates Comparison Monthly Sewer Rate Comparison for Participating Agencies in San Diego Metro System Based on 7 units of water and 3/4 inch Residential meter size for sewer billings established by January 2018 1,03 L� rF Flat Sewer Rate Water Consumption Based Sewer Rate National City Rate City of National City — Sewer Rate Study 2017 SF 1too . NV5 124 of 297 3. The City should establish a definitive reserve policy to protect the financial integrity of their sewer eircetprise fund. The following operational and capital reserves are ie{.oiiniieinicd: (Operations/Cash Flow Reserve The operating reserve provides working capital for day-to-day operations and helps to absorb fluctuations in cash balances due to routine difference in revenue and expense cycles. The 1 City of National City places their sewer service charges on the annual County of San Diego Property Tax Roll for cost effective and efficient collection of these charges- Therefore a 50% cagh flow reserve is recommended. Metro Cash Flow Reserve Ifor (non In 2015 San Diego provided the City with a draft financing plan the Pure Water Program which established National City's -debt funded portion of the program to be $4.4 million in estimated pay -go expenses. It is recommended that the City establish a Metro Cash Flow Reserve in this amount to be used to offset unplanned cost increases for this project Emergency/Natural Disaster Reserve Recent historic events such as Hurrica nes Harvey & Irma have only emphasized the need for an agency to have additional monies set aside to pay for unforeseen events such a restoring service to flooded pump stations, etc. It is recommended that this reserve be established at a minimum of 60-days of operating cash. This would provide cash -flow until the City is able to secure outside funding and/or FEMA reimbursements. Capital Expansion and Replacement Reserves The expansion and replacement reserve provides funding for replacement, repair, or rehabilitation of wastewater infrastructure due to routine capital project planning or in the event of catastrophic failure of a major system asset. The City's current master plan estimates these needs to be $2 million per g¢yea r and thus we are recomst erdine that the reserve be 1 Eestahlished at this ]eve' - City of National City — Sewer Rate Study 2017 NVS 125 of 297 4. NV5 recommends that the City provide a provision to give the City the ability to pass through City of San Diego wholesale transportation, treatment, and disposal costs to customers should those costs rise beyond projections in the cost of service model or beyond what the City notices to customers at time of rate implementation. This action would obviate the need for the City to conduct another Proposition 218 mailed 45-day notice and public hearing requirement. The authority to provide this provision is located in California Government Code Section 53756. Specifically, the Government Code reads as follows: An agency providing water, wastewater, sewer, or refuse collection service may adopt a schedule of fees or charges authorizing automatic adjustments that pass through increaser in wholesale charges for water, selvage treatment, or wastewater treatment or adjustments for inflation, fit complies;pith all of the following: (a) It adopts the schedule of fees or charges for a property -related service for a period not to exceed fiveyears pursuant to Section 53755. (h) The schedule of fees or charger may include a schedule of 4ustments, including a clearh • defined formula for adjusting for inflation. Any inflation adjustment to a fee or charge for a properj-related service shall not exceed the cost fprnviding that service. (c) The schedule of fees or charges for an agency that purchases wholesale water, sewage treatment, or wastewater treatment from a public ageng may provide for automatic acjnstments that _pass through the adopted increases or decreases in the wholesale charges for water, sewage treatment, or wastewater treatment established bj' the other agency. City of National City — Sewer Rate Study 2017 > is NVS 126 of 297 2.0 Introduction This study (Study) takes a long-range planning approach to establishing wastewater service charges and fees. A discussion of the long-range plan and recommended sewer charge and fee adjustments are included in the following section of this report. The analyses contained herein include operation and maintenance (O&M) costs, City of San Diego Metropolitan Wastewater Department (Metro) transportation, treatment and disposal costs, reserve levels, and identified capital improvement projects (CIP). To that end, the Study examines the revenues generated by the City and makes recommendations for revenue adjustments, as needed, The City retained NV5 in 2017 to update a wastewater cost of service study previously developed by PBS&J in FY 2003. Karyn Keese of The Keze Group, LLC, is the lead rate consultant for this Study and was the rate consultant from PBS&J who prepared the FY 2003 study which established the City's sewer user charges from FY 2003 to FY 2006. As stated earlier, the FY 2006 sewer service charges are still in effect today. For purposes of this report, the study period is the fiscal years beginning July 1, 2018 and ending June 30, 2023. Unless otherwise noted, references in this report to a specific year are for the City's fiscal_ year ending June 30. To avoid confusion between calendar and fiscal years, the term FY refers to the year beginning July 1 and ending June 30. Presented herein are the results of a Study of the City's projected revenues, revenue requirements, cost of service, and rates for service. 2.1 Background: City of National City The City provides wastewater service to approximately 17,000 customers within the incorporated area of the City of National City. It owns and operates approximately 100 miles of pipeline, 2,000 manholes, and 2 lift stations. The collection, treatment, and disposal of wastewater in an envitoernenta0v safe and efficient manner promote healthy convnun_ifies and increase the quality of life for '_o a' residents. The City is responsible for collecting and conveying wastewater flows originating within the City to the City of San Diego's Point Loma Treatment Plant for treatment and disposal. The City's primary goals are operating the sewerage system safely and efficiently while meeting the needs of their customers. To meet these goals, the City undertakes routine cleaning, inspections, and repairs and rehabilitates its facilities as needed. The wastewater system operates in an area subject to strict regulatory r —versight b Federal and State agencies such as the U.S_ Bnv r4nrner+ta11 PProtec ion Agency 25 EPA) and the California State Water Resources Control Board (SWRCB). The City must comply with a multitude of laws including, but not limited to, State Wastewater Discharge Requirements City of National City — Sewer Rate Study 2017 11 NVS 127 of 297 (WDRs). Complying with these regulations and resulting mandates contributes to a large share of the cost burden on the City's system. The City completed a Wastewater Master Plan in 2011 which will be updated in the near future, this plan identified an average of $2 million per year in required rehabilitation and expansion projects for the next 9 years following the Plan. These annual project:.d capital improvement costs (CIP) are incorporated into this Study and form the basis for the City's annual capital requirements. tog Background: City of San Diego Metropolitan Sewage Treatment System The City of National City is one of thirteen participating agencies CPAs) who send their. w stew ter to the City of San Diego Metropolitan Sewage Treatment System (Metro) for treatment and disposal. Along with the other PAs the City entered into the Regional Disposal Agreement with San Diego in 1998. Due to positive financial negotiations with San Diego since that time and especially the establishment of the "Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage" during FY 2010 the City has enjoyed stable annual billings for the last 8 years from the City of San Diego. However, in 2015 the City of San Diego initiated a multi -billion dollar public works project entitled the Pure Water Program which will provide the double benefit of "secondary equivalency" to San Diego's wastewater customers including National City as well as a significant new potable water supply for the City of San Diego. In September 2016 the City of San Diego provided the PAs with a range of annual costs from FY 2016 through FY 2022 for Phase I of the Pure Water Program. These annual cost increases began with FY 2018 (current fiscal year) and are the basis for establishing the San Diego portion of the revenue requirement developed by this Study. Tr: c or.•, .,.,1-,a., 201 ,r, t n r itc, of San the P?` s -7.'4_ a . _ `>.. from FY 2016 through �'Y 2022 for Phase Water Program. Thcsc i , .. , �.i .i i uaiL I of the Pure Water i lv�lauL a, u�:ac pil�i�.0 u�iia provided Ct i both a low and a high end -of - range. i k:bie 2-1 below summarizes the range of costs provided to National City which are recommended by San Diego to be used in establishing this rate case. After discussions with City staff NV5 is recommending that the Metro low cost numbers be used for this rate analysis, and that a pass -through resolution should be adopted should the costs exceed the Metro low projections. Table 2-1 Summary of Low and High Metro Cost Projections Metro Low Treatment Costs Metro Transportation & JPA Costs Tot! Metro low Costs Metro High Treatment Costs Metro Transportation & JPA Costs LTct I Metro High Costs FY:8 FY19 FY21 FY22 FY23 I $5,520,749 $6,187,843 $ 8,553,739 87,662,714 $5,786,939 $ 17,586 S 18,113 $ 18 $57 $ 19,216 $ 20,387 $5,538,335 $6,205,956 $ 8,572,396 $7,5381,R30 $6.807,325 $6,101,880 $ 17,58E $6,119,486 $6, 839,195 $ 18,113 $6,857,308 $10,264,486 $ 18,687 $10,283,143 $9,195,257 $ `:9,216 $9.2'L,473 $5,511,370 $ 19,793 85.531,163 $6,613,645 86,944,3271 $ 19,793 $ 20,387 $6,633,438 $6,964,714 ! City of National City — Sewer Rate Study 2017 12 NVS 128 of 297 2.3 Rate Study Summary The City of National City customers enjoy some of the lowest sewer service charges in the Metro System as shown in Figure 2-1 and have for many years. The City last adjusted sewer service charges in FY 2006 and the FY 2018 charge is 38% lower than the average 1\letro PA rate of $50.82 per month. However, the City's increased internal CIP requirements and the costs associated with the Pure Water Program require -that the City adjust their sewer rates for the next five years at an average of 9.S% per year, $00 18o 170 iso $50 140 $30 $20 $10 Figure 2-1 Sewer Rate Comparison for Participating Agencies in San Diego Metro System Monthly Sewer Rate Comparison -for Participating Agencies in San Diego Metro System Based on 7 units of water and 3/4 inch Residential ureter size for sewer billings established by January 2018 Flat Sewer Rate Water Consumption Based Sewer Rate :]1 !1ip . ate°, <Fr tr City of National City —Sewer Rate Study 2017 NVS 129 of 297 3.0 Wastewater Rate Study 3.1 Overview of the Sewer Service Charge Update Process A comprehensive rate study typically utilises three interrelated analyses to address the adequacy and equity of the utility's rates. These three analyses are a revenue requirement an sis, a cost of service analysis, and a rate design analysis. The process is illustrated in Figure 3 -1. Figure 3-1 Overview of the Comprehensive Rate Study Analysis Revenue Requirement Analysis Cost of Service Analysis Rate Design Analysis Compares the sources of funds (revenue) to the expenses of the utility to determine the overall rate adjustment required Allocates the revenue requirements to the various customer classes of service in a "fair and equitable manner Considers both the level and structure of the rate design to collect the target level of service The City's sewer utility was evaluated on a "stand-alone" basis. That is, no subsidies between the utility or other City funds occur. By viewing the utility on a stand-alone basis, the need to adequately fund both operas.ons and maintenance (O&M) and capital inirastructuxe (C112) must be balanced against the rate im utility acts on utty Castotne s. A detailed and comprehensive process was used to review the City's rates. As a part of the rate study process a number of on -site project meeting and conference calls were used to review the results with City rnanagement, staff, and the City Council. From this process, final proposed rates were developed and their development is reviewed in this section of the report. Following is a summary of each step in the process. City of Nationa[ City — Sewer Rate Study 2017 1,1 NVS 130 of 297 Revenue RequirementAnalysis The revenue requirement analysis revealed that several significant financial changes have occurred since the City's 2003 rate study and subsequently adopted sewer user rates. The significant changes are: • The 2011 Wastewater Master Plan contains an annual capital require.-nent of $2 million needed in capital projects for the next 9 years. These costs were not included in the City's FY 2018 adopted budget. • The planning phase of the City of San Diego's Pure Water Program has begun and during FY 2018 to FY 2023 additional Metro costs are anticipated for Phase 1 of this program. City of San Diego staff has identified the increased funding level for the participating agencies from the 2010 adopted Protocol level of $65 million to $128 million per year over the next four -years. The City's portion of this budget is currently 7.4%. National City's increased funding level for the Pure Water Program is included in this rate case. The largest component of the City of National City's revenue requirement is the costs associated with transportation, treatment, and disposal of the City's wastewater by the Metro facilities. A summary of the projected City collection system O&M and CTP, plus San Diego Metro expenses to be included in the City's rate case, are included on Table 3-1. Table 3-1: City of National City Revenue Requirements FY19 FY2G FY21 FY22 FY23 Personnel Services $ 991,191 $ 1,044,152 $ 1,097,540 $ 1,143,891 $ 1,188,573 Maintenance & Operations $ 457,423 $ 471,146 $ 485,280 $ 499,838 $ 514,834 Metro Treatment & Transportation $ 6,205,956 $ 8,572,396 $ ? FR'1 GArs $ 5,531,163 � F t 5, °007,325 Administrative $ 540 349 $ 556,560 $ 573,257 $ 5c0 a54 $ aura 168 Collection System CIP $ 2,026,560 $ 2 027,:?56 $ 2,028.177 $ 2 029,n22 $ ? 029,893 $ 10,221,479 $ 12,671,609 $11,856,184 $ 9,794,359 $ 10,148,793 City of National City — Sewer Rate Study 2017 11 NV5 131 of 297 Figure 3-2 shows the percentage of each of the major cost centers in the City's rate case. As noted the majority of all required revenue from rates (61%) will be paid directly to the City of San Diego. Figure 3-2 Major Cost Components of City of National City's FY 2019 Revenue Requirements Personnel Serinces Maintena nce &.Op a -axons Metro Treatment & Transportation Administrative Collection Sysiem C P As a part of establishing the revenue requirement for the City's rate case City staff requested NV5 consultant's guidance in establishing a sound reserve policy to financially protect the City's sewer enterprise fund. At the end of FY 2017 (June 30, 2017) the City's sewer enterprise fund showed a reserve cash fund balance of $15.5 million. NV5 consultants reviewed with City staff industry standard guidelines in establishing formal reserve policies as well as the City's needs for financial stability and potential exposures to external forces which could require unplanned O&M or capital expenditures. After review of these guidelines and exposures the following formal reserve policy is recommended for the City consisting of three cash flow reserves and two capital reserves. The establishment of this reserve policy has been integrated into the projected revenue requirements for the rate case. Gp tada s/Cash Flaw Reserve: The operating reserve provides working capital for -day-to-day operations and helps to absorb fluctuations in cash balances due to routine difference in revenue and expense cycles. The City of National City pl-aces their sewer service charges on the annual County of San Diego Property Tax Roll for cost effective and efficient collection of these charges. The City's fiscal year begins July 1 of each year and must fund their ongoing operations and capital budget requirements starting at that date. However, the City does not receive their first revenues from the tax roll until January of the following year and thus there is a lag of budget funding of six months. Therefore, a 509rc cash flow reserve is recommended to allow for the orderly payment of the City's sewer enterprise fund's expenditures throughout the fiscal year City of National City — Sewer Rate Study 2017 16 NV5 132 of 297 Metro Cash Flow Reserve: in 2015 the City of San Diego launched their Pure Water San Diego Program, a massive public works project, which inutodue s an additional risk of annual cost overruns to the City's required payments to San Diego for transportation, treatment, and disposal of wastewater collected from the City's customers. In 2015 San Diego provided the City with a draft financing plan for the entire program which established National City's non -debt funded portion_ of the program to be $4.4 million in estimated pay -go expenses. It is recommended that the City establish a Metro Cash Flow Reserve in this amount to be used to offset unplanned cost increases for this project. Emergency/Natural Disaster Reserve: Recent historic events such as Hurricane Harvey have only emphasized the need for an agency to have additional monies set aside to pay for unforeseen events such a restoring service to flooded pump stations, etc_ It is recommended that this reserve be established at a minimum of 60-days of operating cash. This v.-mild provide cash -flow until the City was able to secure outside funding and/or FEMA reimbursements. Capita if Expansion and Replacement Reserves: As a participating agency (PA) in the San Diego Metro System the City is required by State and US EPA regulations to maintain reserves that provide for the expansion and replacement of the City's collection system. The expansion and replacement reserve provides funding for replacement, repair, or rehabilitation of wastewater infrastructure due to routine capital project planning or in the event of catastrophic failure of a major system asset. The City's current master plan estimates these needs to be $2 million per year and thus we are recommending that the reserve be established at this level. The final step in determining the revenue requirement for the City's rate case was to overlay the projected expenditures for the next five years as summarized in Table 3-1 and the recommended reserve policy. Table 3-2 creates a long-range plan showing the use of reserves to moderate the annual rate adjustment to 9.8% per year stating in FY 2019 from FY 201$ through FY 2021. use/replacement of the City's reserves is shown on Line 22. A detailed copy of the five-year revenue requirement is included in Appendix A to this report. City of National City — Sewer Rate Study 2017 17 NVS 133 of 297 Table 3-2: City of National City Long Range Financial Flan i YE 2015 FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 1 Beginning Balance $15,530,261.00 $ 15,014,450.61 $ 11,750,911.22 $ 6,037,241.24 • $ 1,128,996.22 $ (1,707,433.63) 2 Revenue: 3 Mon -Operating Revenue $ 15,000.00 $ 15,000.00 $ 15,000.00 $ 15,000.00 $ 15,000.00 i $ 15,000.00 4 User Fees $ 6,942,939.32 $ 6,942,030.32 $ 6,942,939.32 $ 6,942,939.32 $ 6,942,939.32 $ 6,942,939.32 5 Total Revenue $ 6,957,939.32 $ 6,957,939.32 $ 6,957,939.32 $ 6,957,939.32 $ 6,957,23932 S 6,957,939.32 , 0 Operations Expenses: � 7 Coilnctnn System Maintenance $ 1,935,415.00 $ 2,015,522.43 $ 2,099,213.62 $ 2,184,2'53.95 $ 2,263,206.23 $ 2,341,467.45 8 Metro and JPA costs - Low Projection $ 5,538,334.71 $ 6,205,956.28 $ 8,572,395.68 $ 7,681,930.38 $ 5,531,162.87 5 5,807,325.16 9 Total Operations Expenses $ 7,473,749,71 $ 8,221,478.71 $ 10,671,609.30 $ 9,866,184.34 $ 7,794,369.16 S 8,148,792.61 110 11 112 Cae!tai Improvement Program: 113 Cc']ecten System CI $ - $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 2,090,000.00 14 Tote Expenses $ 7,473,749.71 $ 16,221,478.71 $ 12,671,609.30 $ 11,866,184.34 $ 9,794,369.16 $ 10,148,792.61 15 Fund Balance Prior to Reserves $ 15,014,480.61 $ 11,750,411.22 $ 6,037,241.24 $ 1,128,996.22 $ (1,767,433.63} $ (4,498,286.92} 16 Reserve Targets: 17 Operations/Cash Flew $ 3,738,874.86 $ 4,110,739.36 $ 5,335,804.65 $ 4,933,092.17 $ 3,897,184.58 $ 4,074,396.31 18 Metro Cash Flow $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.01.1 19 EmergencylNat Disaster $ 1,245,624.95 $ 1,370,246.45 $ 1,778,601.55 $ 1,644,364,96 $ 1,299,061.53 $ 1,358,132.10 20 Capital tension Reserve $ 1,0110,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,090,000.00 $ 1,600,000.00 $ 1,000,000.00 21 Capital Replacement Reserve $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 22 Total Recommended Reserves $ 11,382,499.81 $ 11,880,985.81 $ 13,514,406.20 $ 12,977,458.23 $ 11,596,246.11 $ 11,832,528.41 23 Fund Balance Over1(Under) $ 3,631,950.80 $ (130,074.59) $ (7,477,164.96) $ (11,848,460.01) $(13.303,679.73) $ (16,730,815.32) Reserve Target Cost of Service Analysis: The cost of service analysis revealed that several major changes have occurred in users and use since the City's 2003 rate study and subsequently adopted sewer user rates. The significant changes are: As with other communities in San Diego County and Southern California the Citv's citizens and businesses have decreased their water usage significantly since FY 2003, This has decreased revenues from the commercial and industrial users of the City who are billed on their annual water usage The City uses an equivalent dwelling unit (EDU) system of rates for their residential users. Historically the City has used 280 gallons per day (gpd) for a single family residential user for billing purposes. Multi-family/condo units are considered to be 0.78 EDU and mobile home units 0.61 EDUs. These EDUs are consistent with industry standards for EDU based user systems. However, due to the decreased water use by residential as well as commercial/industrial users the gallons per EDU have decreased to an estimated 240 gpd. 240 gpd is consistent with the majority of the PAs wastewater generation rate (in gpd) for EDUs such as the County of San Diego and. the City of Lemon Grove. City of National City — Sewer Rate Study 2017 1 8 NV5 134 of 297 The City's rate model was updated with the number of residential and commercial,/industrial users used for billing purposes on the FY 2018 tax rolL As noted above the gallons for residential EDUs were revised to 240 gpd per EDU and the most recent water usage for comtuercial/industrial users was included. Table 3-3 summarizes the current number of City users and their projected sewer flows based on the current tax roll water use data for FY 2018. 'fable 3-3: Summary of Current Users and Estimated Sewer Flow Units of Service and Loadings FLOW: SOD: SS: {A) {B} (C) ID) {e} IF) {G} User Group No. of Active Annual Flow Annual BOD Annual Customers Total Flow Total Flow {MG1Yeerj BOD User Load SS per User Load (MGD) tH0Fj1 (MG/L) (L°8S'YRi (MGIL) (LBS/YR) Single Family 5,873 1.4095 514.47 200 838,11G 200 868,116 Muttl4amily/Condo 9,840 1.8420 672.35 200 1,121,439 200 1,121,439 Mobile Homes 370 0,0542 19.77 200 32,977 200 32 977 Subtotal. Residential 16.083 3,3057 0 1,208.59 2,012,532 2,012,632 Commercial - Low` 770 0.7045 343,530 257.13 200 426,882 200 428,862 Commercial - Medium Low 203 0.1496 72,891 54.56 200 91,001 30D 136,502 Commercial - Medium 6 0.0387 18,868 14.12 400 47,087 400 47,067 Commercial - Medium High 90 0.1014 49,445 37.01 600 185.190 500 154,325 Commercial - High 29 0.0482 23,494 17.59 680 99,726 900 131,991 Subtotal Non-ResIdential 1,100 1.0422 508,218 380.40 851,887 898,787 TOTAL 17,183 4,3479 508,218 1,586,99 2,884;119 2,911,319 Rate Design Analysis: As part of the rate setting process a routine review of an agency's sewer service charge rate structure is performed. This is done to assure that the agency's rate structure meets industry standards as well as complies with local, State, and Federal guidelines and regulaioris. The City of National City first established their current rate structure in the mini 1990's and it was submitted to the State Water Resources Control Board of the State of California (SWRCB) and the US EPA. The rate structure and the cost allocations upon which it is based were approved by both the SWRCB and the US EPA. These principles still meet industry standards today and follows Best Management Practices (BMP's) established by the State of California, and thus there are no recommended changes to the existing rate structure, The City uses a combination of EDU's for residential users and water based rates for commercial/industrial users. Single family residential users are considered to be 1 EDU, and multi- family/condo users 0.78 EDU, and mobile home users 0.61 EDU. Commercial/industrial users are grouped based on their estimated sewage strengths into five classes of users. Each year 90% of the prior year's water usage per commercial/industrial customer is used to determine the upcoming year's sewer service charge. City of National City — Sewer Rate Study 2017 19 NVS 135 of 297 All classes of users will continue to be billed their annual sewer service charge on the County of San Diego tax roll based on either their EDU classification or their annual water usage and sewage strength category. Table 3-4 compares the current FYE 2018 sewer rates with the proposed FYE 2019 through FYE 2023 of the proposed rate case. The entire output from the rate model showing all steps in the rate case is contained in Appendix A to this Study Table 3-4: Comparison of Current Versus Prhpnsed Sewer User Rates User Class Current 1 2019 2020 2021 2022 2023 Residential: $ Per Month Single Family $ 32.08 $ 35.23 $ 38.68 $ 42.47 $ 46.61 $ 51.18 Multi-family/Condo $ 25.00 $ 27.48 $ 30.17 $ 33.13 $ 36.36 $ 39.92 Mobile Homes $ 19.50 $ 21.49 $ 23.60 $ 25.91 $ 28.43 $ 31.22 Non -Residential: $ Per HCF Commercial - Low $ 3.03 $ 3.61 $ 3.97 $ 4.35 $ 4.78 $ 5.25 Commercial - Medium Low $ 3.12 $ 3,89 $ 4.33 $ 4.73 ` $ 5.13 $ 5.66 Commercial - Medium $ 4.09 $ 4.69 $ 5.37 $ 5.76 $ 6.13 $ 6.80 Commercial - Medium High $ 4.90 $ 5.48 $ 6.40 $ 6.80 $ 7.12 $ 7.95 Commercial - High $ 6.12 $ 6,82 $ 8.14 $ 66.55 $ 8.79 • $ 9.88 As discussed earlier in this report, the majority of the revenue requirement recovered by the City's sewer service charges go to pay for cost associated with charge from San Diego Metro_ Figure 3-3 summarizes the major components of the proposed FY 2019 monthly single family sewer service charge of $35.23 per EDU. This figure also shows the use of City reserves to phase in the Pure Water Program and City CIP costs: Figure 3-3 Components of FY 2019 Single Family Monthly Rate Components of FY 2109 Single Family Monthly Rate San Diego Metro ?Nation I City CP NC Collection System Use of Reserves City of National City - Sewer Rate Study 2017 20 NVS 136 of 297 Figure 3-4 summarizes all San Diego Metro Member Agencies cornparative sewer user rates based on 7 i ICF of 1vate usage j ssewei flow and a residential monthly base fee. it should be noted that the rates shown are those effective July 1, 2017. The City's first proposed rate adjustment is not until July 1, 2018. By that time the majority of these rates will be 5% to 10% n higher as all agencies except San Diego either have adopted current rate cases or are in the process of updating their current rate cases to phase in the required Pure Water Program costs. Even with the proposed 5-year rate adjustments National City will still enjoy some of the lowest rates among the users of the San Diego Metro System, The proposed FY 2019 single family rate will be as low as $35.23 which is 37% lower than the existing (FY 2018) average Metro member agency rate of $50.82 Sa0 $80 $70 $60 $50 $40 S30 $20 $10 Figure 3-4 Metro Member Agencies Sewer Rate Comparison w Monthly Sewer Rate Comparison for Participating Agencies in San Diego Metro I Flat Sewer Rate Water Consumption 9esed Sewer Rate National City Rate System Based on 7 units of water and 3/4inch Residential meter site for sewer billings established by January 2018 8 ° N7 1st 0 et'�{d� �c, „c City of National City — Sewer Rate Study 2017 NVS 137 of 297 Appendix A - Rate Model • Assumptions • Wastewater Operations & Maintenance Budget • Budget Summary • Step 1 — Customer Summary and Estimated Flows • Step 2 — Determination of Unit Costs • Step 3 — Sewer User Rate Calculations by Fund and Cost City of National City — Sewer Rate Study 2017 138 of 297 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE PROPOSED RATE ADJUSTMENT FOR SEWER SERVICE CHARGES FOR FISCAL YEARS 2018-19, 2019-20, 2020-21, 2021-22, AND 2022-23 WHEREAS, the City of National City retained an outside consultant to perform a sewer rate study in order to develops a wastewater multi -year financial plan, cost of service analysis, and rate design for the City; and WHEREAS, on October 3, 2017, the City Council considered the September 2017 Sewer Rate Study that recommended increasing sewer service charges to reflect current costs of providing sewer service to customers within the City. The 2017 Sewer Rate Study is available for inspection in the Office of the City Clerk; and WHEREAS, on October 7, 2017, the City mailed the Notice of Public Hearing to Consider Proposed Adjustments to Sewer Service Charges to all National City property owners to satisfy the notice requirements of Proposition 218; and WHEREAS, on December 5, 2017, no majority protest of such property owners was presented upon conclusion of the noticed Proposition 218public hearing to consider the Proposed Adjustments to Sewer Service Charges. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City does hereby approve the proposed adjustments for sewer service charges for fiscal years 2018-19, 2019-20, 2020-21, 2021-22, and 2022-23, as set forth in the attached Exhibit "A", which is incorporated herein by this reference as though set forth in full. PASSED and ADOPTED this 5th day of December, 2017. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ron Morrison, Mayor 139 of 297 EXHIBIT "A" User Class Current 2019 2020 2021 2022 2023 Residential: $ Per Month Single Family $ 32,08 $ 35.23 $ 38.68 $ 42.47 $ 46.61 $ 51.18 Multi-family/Condo $ 25.00 $ 27.48 $ 30.17 $ 33.13 $ 36.36 $ 39.92 Mobile Homes $ 19.50 $ 21.49 $ 23.60 $ 25.91 $ 28.43 $ 31.22 Non -Residential: $ Per HCF Commercial - Low $ 3.03 $ 3.61 $ 3.97 $ 4.35 $ 4.78 $ 5.25 Commercial - Medium Low $ 3.12 $ 3.89 $ 4.33 $ 4,73 $ 5.13 $ 5.66 Commercial - Medium $ 4.09 $ 4.69 $ 5.37 $ 5.76 $ 6.13 $ 6.80 Commercial - Medium High $ 4.90 $ 5.48 $ 6.40 $ 6.80 $ 7.12 $ 7.95 Commercial - High $ 6.12 $ 6.82 $ 8.14 $ 8.55 $ 8.79 $ 9.88 140 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 141 The following page(s) contain the backup material for Agenda Item: Public Hearing on the Introduction of an Ordinance of the City Council of the City of National City repealing Ordinance No. 2003-2226 and adopting an Ordinance establishing Sewer Service Charges for fiscal years 2018-19, 2019-20, 2020-21, 2021-22, and 202 141 of 297 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 5, 2017 AGENDA ITEM NO. ITEM TITLE' A Public Hearing on the introduction of an Ordinance of the City Council of the City of National City repealing Ordinance No. 2003-2226 and adopting an Ordinance establishing Sewer Service Charges for fiscal years 2018-19, 2019-20, 2020-21, 2021-22, and 2022-23. PREPARED BY.- Jose Lopez, Assistant Engineer - Civil PHONE: 619-336-4312 EXPLANATION: See attached. DEPARTMENT: Engine APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: X FINAL ADOPTION: APPROVED: APPROVED: Finance MIS pTAFF RECOMMENDATION: Introduce Ordinance. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. lExplanation 2. Background Report wl proposed rates 3. Sewer Rate Study 4. Notice of Public Hearing to Consider Proposed Adjustments to Sewer Service q 142 of 297 5. Proposed Ordinance Explanation On October 3, 2017, the City Council of the City of National City 1) accepted and filed the background report and Sewer Rate Study and 2) directed staff to mail out the Notice of Public Hearing in accordance with Proposition 218 requirements. The Notice of Public hearing was mailed out, with a public hearing date of December 5, 2017 at 6:00 PM. Also, in order to confirm sewer -related revenues have been collected and spent appropriately prior to bringing forward consideration for a sewer rate increase, the City engaged The Pun Group ("the auditor") to perform agreed -upon procedures to review the calculation and billing of sewer -related charges and the revenue and expenditure transactions within the Sewer Service Fund. The procedures, which were performed on calculations and transactions occurring in fiscal years 2012-13, 2013-14, 2014-15, 2015- 16, and 2016-17, are: 1. Review of revenues derived from sewer -related charges to determine whether the revenues were recorded and deposited into the Sewer Services Fund in accordance with NCMC § 14.04.010 8; 2. Review of sewer -related charges to determine whether the charges were correctly calculated and billed to the customers; 3. Review of Sewer Service Fund expenditures to determine whether they were properly recorded, and whether funds were spent for the specific purposes established by NCMC § 14.04.010 C. The report issued by the auditor states that, for the calculations, billings, and transactions reviewed for the period, no exceptions were found to the accurate calculation and billing of sewer -related charges, correct recording of transactions, or proper spending of Sewer Service Fund monies. Staff will return to City Council at the regularly scheduled meeting of December 19, 2017 with a Public Hearing on the second reading of the Ordinance, inclusive of any changes directed by City at the end of the Pubic Hearing on the introduction of the Ordinance. City Council will then take action, pursuant to their consideration, to adopt the Ordinance. 143 of 297 Background Report National City provides wastewater service to approximately 17,000 customers within the incorporated area of the City of National City. It owns and operates approximately 100 miles of pipeline, 2,000 manholes, and 2 lift stations/force mains. The City is responsible for collecting and conveying wastewater flows originating within the City to the City of San Diego's Point Loma Treatment Plant for treatment and disposal. The City's primary goals are operating the sewerage system safely and efficiently while meeting the needs of their customers. To meet these goals, the City undertakes routine cleaning, inspections, and repairs and rehabilitates its facilities as needed. The wastewater system operates in an area subject to strict regulatory oversight by Federal and State agencies such as the U.S. Environmental Protection Agency (USEPA) and the California State Water Resources Control Board (SWRCB). The City must comply with a multitude of laws including, but not limited to, State Wastewater Discharge Requirements (WDRs). Complying with these regulations and resulting mandates contributes to a large share of the cost burden on the City's system. The City of National City is one of thirteen participating agencies (PAs) who send their wastewater to the City of San Diego Metropolitan Sewage Treatment System (Metro) for treatment and disposal. Along with the other PA's, the City entered into the Regional Disposal Agreement with San Diego in 1998. Due to positive financial negotiations with San Diego since that time and especially the establishment of the "Administrative Protocol on Allocation of operating Reserves and Debt Service Coverage" during FY 2010 the City has enjoyed stable annual billings for the last 8 years from the City of San Diego. However, in 2015 the City of San Diego initiated a multi -billion dollar public works project entitled the Pure Water Program which will provide the double benefit of "secondary equivalency" to San Diego's wastewater customers including National City as well as a significant new potable water supply for the City of San Diego. In September 2016, the City of San Diego provided the PAs with a range of annual costs from FY 2016 through FY 2022 for Phase I of the Pure Water Program. These annual cost increases began with FY 2018 (current fiscal year) and are the basis for establishing the San Diego portion of the revenue requirement developed by this Study. The City of National City customers enjoy some of the lowest sewer service charges in the Metro System. The City last adjusted sewer service charges through a 2003 Rate Study and rates were last increased in FY 2006. FY 2018 charge is 38% lower than the average Metro PA rate of $50.82 per month. However, the City's increased internal CIP requirements and the costs associated with the Pure Water Program require that the City adjust their sewer rates for the next five years at an average of 9.8% per year. The City's sewer utility was evaluated on a "stand-alone" basis. That is, no subsidies betweeri the utility or other City funds occur. By viewing the utility on a stand-alone basis, the need to 144 of 297 adequately fund both operations and maintenance (0&M) and capital infrastructure (CIP) must be balanced against the rate impacts on utility customers. A comprehensive process was used to review the City's rates and projected expenses. Background information on capital needs was available through the CIP Needs Assessment, which was presented at the City Council Meeting of February 28, 2017. The revenue requirement anaiysis revealed that several significant financial changes have occurred since the City's 2003 rate study and subsequently adopted sewer user rates. The significant changes are: 1. The Wastewater Master Plan contains an annual capital requirement of $2 million for capital projects for the next 9 years. 2. The planning phase of the City of San Diego's Pure Water Program have begun and during FY 2018 to FY 2023 additional Metro costs are anticipated for Phase 1 of this program. City of San Diego staff has identified the increased funding level for the participating agencies from the 2010 adopted Protocol level of $65 million to $128 million per year over the next four -years. The City's portion of this budget is currently 7.4%. National City's increased funding level for the Pure Water Program is included in this rate case. The largest component of the City of National City's revenue requirement is the costs associated with transportation, treatment and disposal of the City's wastewater by the Metro facilities. A summary of the projected City collection system O&M, CIP and Metro expenses, compared to current and proposed sewer rates, are included in the City's rate case and summarized in the charts below. 145 of 297 20,000,000 15,000,000 10,000,000 5,000,000 0 -5,000,000 -10,000,000 Sewer Service Fund Revenue Projections vs Exp enses Without Rate Increases (FY 2018 FY 2025 ) FY18 FY19 FY20 FY21 _. Sewage Transport and Treatment (MWWD) National City Sewer CIP Sewer Fund Balance (without rate increases) FY23 National City Maintenance & Operations Projected Revenues (without rate increases) 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Sewer Service Fund Revenue Projections vs Expenses With Rate Increases (FY 2018 - FY 2023) FY18 FY19 F5'20 Sewage Transport and Treatment (MWWD) National City Sewer CIP Sewer Fund Balance (with rate increases) FY21 FY22 FY23 National City Maintenance & Operations Projected Revenues (with rate increases) 146 of 297 Based on cost of service and projected revenue requirements, the City proposes new sewer service charges. The following table shows the proposed sewer charges for FY 2019 through FY 2023 and compares them to existing charges: User Class Current 2019 2020 2021 2022 2023 Residential: $ Per Month Single Family $ 32.08 $ 35.23 $ 38.68 $ 42.47 $ 46.61 $ 51.18 Multi-family/Condo $ 25.00 $ 27.48 $ 30.17 $ 33,13 $ 36.36 $ 39.92 Mobile Homes $ 19.50 $ 21.49 $ 23.60 $ 25.91 $ 28.43 $ 31.22 Non -Residential: $ Per eCF Commercial - Low $ 3.03 $ 3.61 $ 3.97 $ 4.35 $ 4.78 $ 5.25 Commercial - Medium Low $ 3.12 $ 3.89 $ 4.33 $ 4.73 $ 5.13 $ 5.66 Commercial - Medium $ 4.09 $ 4.69 $ 5.37 $ 5.76 $ 6.13 $ 6.80 Commercial - Medium High $ 4.90 $ 5.48 $ 6.40 $ 6.80 $ 7.12 $ 7.95 Commercial - High $ 6.12 $. 6.82 $ 8.14 $ 8.55 $ 8.79 $ 9.88 The City should also establish a definitive reserve policy to protect the financial integrity of our sewer enterprise fund. City staff proposes a reserve policy that meets industry standard guidelines in establishing formal reserve policies as well as the City's needs for financial stability and potential exposures to external forces which could require unplanned O&M or capital expenditures. The establishment of this reserve has been integrated into the projected revenue requirements for the rate case. The following chart presents a financial picture of the Sewer Enterprise Fund over the next five fiscal years based on the inclusion of proposed sewer rate increases (revenues), total expenses, and operational and capital reserves. 15,000,000 10, 000,000 5,000,000 0 (5,000,000) Ill ':N)p,000) Sewer Service Fund with Establishment of Reserves With Rate Increases (FY 2018 FY 2023) L FY18 FY19 FY20 FY21 FY22 FY23 Projected Revenues (with rate increases) I_,77_ Recommended Reserves Use / Replacement of Reserves Total Expenses Sewer Fund Balance (after establishment of reserves) 147 of 297 Long Range Financial Plan: Establishment & Use of Reserves Table 5 Total Revenue $ 6,957,939.32 $ 7,881,478.71 $ 8,696,609.30 $ 9,521,184.34:: $10,409,369.16 $ 11,443,792.61 I 12 Total Expenses $ 7,473,749.71 $ 10,221,478.71 $ 12,671,609.30 $ 11,866,184.34 $ 9,794,369.16 $ 10,148,792.61 i r i 13 fund Balance Prior to Reserves $15,014,450.61 $ 12,674,450.61 $ 8,699,450.61 $ 6,954,450.61 l $ 6,969,450.61 $ 9,264,450.61 14 Rosary* Targets: 15 Operations/Cash Flow $ 3,736,874 86 $ 4,11_0,739 36 $ 5,335,804 65 $ 4,933,09.2 17 $ 3,897,184.58 $ 4,074,396 31 16 Metro Cash Firm 5 4,40i7,000 0 $ 4,400,000.00 $ 4,400,000 00 $ 4,400;,i:r50dr 1 $ 4,400,000.00 $ 4,400,00100 17 Emergency/Net Disaster $ 1,245,624 95 5 1,370,246 45 $ 1,778,601 55 $ 1,6-14- ,364 UE.. 1 $ 1,299)361.53 $ 1,358,132 ill 18 Capital Expansion Reserve $ 1,000,000 00 5 S,Ooo,000 oo $ 1,000,000 00 $ 1,o c...ma $ 1,000,000A0 $ 1 oc0,808 00 19 Capital Replacement Reserve $ 1,000,000.00 $ 1,000,000 00 $ 1,000,000 00 $ 1,000,000.G_.) $ 1,0013,000 00 $ 1,000,000 00 20 Tote) Recommended Reeuvea $ 11,382,499.81 5 11,880,985.81 $ 13,514,406_20 $12,9: 7,456 2c. i $11,596,246.11 $ 11,832 528 41 21 Fund Balance Over/(Unda)rTarget 5 3,631250.80 5 793,464.80 $ (4)814,955.5S) $ (6,623,005.62;1 $ (4,626795.50)- $ (3,568,077.80) 22 (use}/Ruplac,m.rtofSmarm $ (s35,810.39j $ {2,940,000.00 $ (9,975,00040 $(2,345,000.0 l $ 61s,012000 1 $ 1,293,000.90 Footnote: (Use)%Replacement of Reserves — A negative value indicates use of reserves required to offset total expenses. A positive value indicates replenishment of reserves based on revenues exceeding expenses. The following chart represents a monthly sewer rate comparison for PA's before and after the FY 2019 proposed rate increase. With the rate increase for FY 2019, National City would still have the lowest sewer rate among all cities in San Diego County. 590 Monthly Sewer Rate Comparison for Participating Agencies in San Diego Metro $e0 System Based on 7 units of water and 3/4inch Residential meter sire for sewerbillings established bvJanuary 2018 570 50O EEO $40 530 $20 $10 Flat Sewer Rate Water Consumption Based Sewer Rate National City Rate L 148 of 297 City of National City Sewer Rate Study September 2017 imummemmt mormr------ immomismb Submitted To: City of National City 1243 National City Boulevard National City, CA 91950-4301 Submitted By: NV5 15092 Avenue of Science, Suite 200 San Diego, CA 92128 858.385.0500 149 of 297 City of National City Sewer Rate Study September 2017 Prepared for: City of National City 1243 National City Boulevard National City, CA 91950-4301 Prepared by: NV5, Inc. 15092 Avenue of Science, Suite 200 San Diego, CA 92128 858.385.0500 150 of 297 Contents 1.0 Executive Summary 3 1.1 Findings 4 1.2 Recommendations 5 2.0 Introduction 11 2.1 Background: City of National City 11 2.2 Background: City of San Diego Metropolitan Sewage Treatment System 12 2.3 Rate Study Summary 13 3.0 Wastewater Rate Study 14 3.1 Overview of the Sewer Service Charge Update Process 14 Tables Table 1-1 — Sewer Enterprise Fund Long Range Plan without Revenue Adjustments (Status Quo) 4 Table 1-2 — Recommended Annual Revenue Adjustment 5 Table 1-3 - Sewer Enterprise Funcl Long Range Plan with Recommended Revenue Adjustments 6 Table 1-4: Recommended Annual Sewer Service Charges 7 Table 2-1 Summary of Low and High Metro Cost Projections 12 Table 3-1: City of National City Revenue Requirements 15 Table 3-2: City of National City Long Range Financial Plan 18 Table 3-3: Summary of Current Users and Estirnated Sewer Flow 19 Table 3-4: Comparison of Current Versus Proposed Sewer User Rates 20 Figures Figure 1-1 Metro Member Agencies Sewer Rates Comparison 8 Figure 2-1 Sewer Rate Comparison for Participating Agencies in San Diego Metro System 13 Figure 3-1 Overview of the Comprehensive Rate Study Analysis 14 Figure 3-2 Major Cost Components of City of National City's FY 2019 Revenue Requirements 16 Figure 3-3 Components of FY 2019 Single Family Monthly Rate 20 City of National City — Sewer Rate Study 2017 NVB 151 of 297 Figure 3-4 Metro Member Agencies Sewer Rate Comparison 21 Appendices Appendix A — Wastewater Rate Study Abbreviations AWWA American Water Works Association BMP Best Management Practices as Prescribed by the State of California BOD Biochemical Oxygen Demand — A Measure of Sewage Strength CIP Capital Improvement Program or Plan RT)U Equivalent Dwelling Unit ENR CCI Engineering News Record Construction Cost Index FY Fiscal Year Ending June 30 GPD Gallons per Day HCF Hundred Cubic Feet Metro City of San Diego Metropolitan Wastewater System mg/l Milligrams per Liter O&M Operations and Maintenance PA Participaing Agency in the San Diego Metro System TSS Total Suspended Solids — A Measure of Sewage Strength US EPA U.S. Environmental Protection Agency City of Natioria! City — Sewer Rate Study 2017 NVS 152 of 297 1 0 Executive Summary This report was prepared for the City of National City (City) to document the development of a wastewater multi -year financial plan, cost of service analysis, and rate design for the City (rate case). The specific goals of the study were to: • Evaluate the adequacy of projected revenues under existing sewer service charges to meet projected revenue requirements; • Develop a wastewater cost of service and rate model for the City covering a five-year study (Fiscal Year 2019 through Fiscal Year 2023) period for both ongoing operations and planned capital improvements; • Allocate the projected fiscal years revenue requirements to the various customer classes in accordance with the proportionate share of their wastewater contributions; • Develop a five-year sewer service charge program that produces revenues adequate to meet financial needs of the City for both their required funding of the City of San Diego's Pure Water Program and the City's operations and capital needs, while recognizing customer costs of service, and local and state legal and policy considerations such as California Constitution Articles XIII C and D (Proposition 218), and Proposition 26; and • Recommend appropriate reserve levels for operations and capital needs. City of National City — Sewer Rate Study 2017 3 NVS 153 of 297 1.1 Findings During the course of our analysis in relation to the specific goals of the study we made the following findings: 1. The City of National City last adjusted the sewer service charges in FY 2006. 2. Wastewater service charge revenues at current levels will not be sufficient over the next five years to meet the increasing cost of City operating and capital expenses without negatively affecting fund balance levels'. In the absence of annual rate adjustments, projections show that the City would deplete the Net Fund Balance during FY 2022. Line 23 on Table 1-1 on the next page illustrates the projected financial picture without recommended sewer service charge adjustments, and shows that the City's Fund Balance falls below recommended operating reserve target levels by FY 2019 and falls into a negative cash position by FY 2022_ 1 The term "fund balance" refers to the remaining amounts available after short-term liabilities (monies owed) are paid off with the agency's available cash and other financial resources (such as receivables). The fund balance includes reserved and unreserved components. For the purposes of this Study, this term refers to "available cash excluding reserved monies" and the term "fund" refers to either the Operating or Capital account in which these monies reside. Table 1-1— Sewer Enterprise Fund Long Range Plan without Revenue Adjustments (Status Quo) FYE 2018 FYE 2019 FYE 2020 FYE 2621 FYE 2022 FYE 2023 1 Beginning Balance $15,530,261.00 $ 15,014,450.61 $ 11,750,911.22 5 6,037,241.24 $ 1,128,996.22 $ (1,707,433.63) 2 Revenue: 3 Non -Operating Revenue $ 15,900.00 $ 15.000.00 $ 15,000.00 5 15,000.00 $ 15,000.00 $ 15,000.00 4 User Fees $ 6,942,939,32 $ 6,942,939.32 $ 6,942,939.32 5 6,942,939.32 $ 6,942,930.32 $ 6,942,939.32 5 Tots/Revenue $ 6,957,939,32 $ 6,957,939.32 $ 6,957,939.32 5 .6,957,939.32 $ 6,957,939.32 $ 6,957,939.32 6 Operations Expenses: r 7 Collection System Maintenance $ 1,935,415.00 $ 2,015,522.43 $ 2,099,213.62 'a 2,184,253.96 $ 2,263,206.29 $ 2,341,467.45 8 Metro and ,IPA costs- Low Projection $ 5,538,334.71 $ 6,205,956.2B $ 8.572,396,68 $ 7,881,930.38 $ 5,531,162.87 $ 5,807,325-16 9 , 11U Totat Operations -Expenses $ 7,473,749.71 $ 8,221,478.71 $ 10,671,609.30 $ 9,666,184.34 $ 7,794,369.16 $ 8,148,792.61 i„ 112 0ap!ta! !rnprovemen! Program: 113 Collection System CIP $ - $ 2,000,900.00 $ 2,900,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 e 14 Total Expenses $ 7,473,749.71 $ 10,221,478.71 5 12,671,609.30 S 11,866,184.34 $ 9,794,369.16 $ 10,148,792.61 15 Fund Balance Prior to Reserves $ 15,014,450,61 $ 11,750,911.22 $ 6,037,241.24 $ 1,128,496.22 $ (1,707,433.63j 1 (4,698,28632) I 116 Reserve Targets: 117 Opere8ons!CashFlow $ 3,736,874.86 S 4,110,739.36 $ 5,335,004.65 $ 4,933,092.17 $ 3,897,184.58 $ 4,074,356.31 18 Metro Cash Flow $ 4,400,000.00 $ 4,400,000.00 $ 4,490,000.00 $ 4,400,000.00 $ 4,400,000.00 $ 4,403,000.00 119 EmergencylNat Disaster $ 1,245,624,05 $ 1,370,246,45 $ 1,775,601.55 $ 1,644,364.06 $ 1,299,061.53 $ 1,358,132.10 Capital Evansion Resere $ 1,000,000.00 $ 1,000,090.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 120 21 Capital Realacemant Reserve $ 1,000,000.00 3 1,000,000.00 $ 1600,000.00 $ 1,000,000.00 $ 1,000,006.00 9 1,0Q0 D01,00 ,22 rots' Recomrxnded Reserves $ 11,382,499.81 $ 11,580,95,5,81 $ 13,514,406.20 $ 12,977,456.23 $ 11,596,245.11 $ 11?7 528.41 1 23 Fund Balance Overt(Under) $ 3,631,950.80 $ (130,074.59) $ (7,477,164.96) $ (11,348,460.01) $ (13,303,679.73) $ (16,730,815.32) f Reserve Target 3. The City does not have a formal reserve policy for their operarions or capital funds. City of National City — Sewer Rate Study 2017 4 NV5 154 of 297 4. The City does not have a mechanism to pass through wholesale treatment costs from the City of San Diego to customers should those costs rise beyond projections in the cost of service model, or beyond future year projections. 5. The City has an adequate system of sewer service charges to meet repilgtory and industry standards, and their current rate schedule reflect the proper elements of a cost of service based rate structure. Thus we are not recommending any structural c:anges to the current system of charges. 1.2 Recommendations The following lists NV5, Inc.'s (NV5) recommendations to address the findings listed above: 1. Per the cost -of -service analysis contained within this report, NV5 recommends City wastewater service charges be adjusted to reflect current costs of providing sewer service to customers within the City. This recommendation includes adjusting total revenue from rates by 9.8 percent per year beginning in FY 2018 and ending in FY 2023 as shown in Table 1-2. Table 1-2 — Recommended Annual Revenue Adjustment Fiscal Year FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Revenue Adjustment Effective Month 9.8% July 9.8% July 9.8% July 9.8% July 9.8% July 9.8% July Based on the cost of service analysis, revenue adjustments per customer class will vary, however, in total, the City requires 9.8 percent more revenue from customer rates each year. Should the City approve these rate adjustments, the projected financial picture of the City should stabilize by FY 2022 as demonstrated in Table 1-3, Line 22. City of National City — Sewer Rate Study 2017 — NV5 155 of 297 Table 1-3 - Sewer Enterprise Fund Lott, Range Plan with. Recommended Revenue Adjustments FM 2018 FTE 20ig FVE 2020 FYE 2021 PIE 2022 HE 2023 1 Beginning Balance $ 15,530,261.00 $ 15,014,450.61 $ 12,674,450.61 $ 8,699,450.61 $ 6,354,450.61 $ 6,969,450.61 2 Revenue: 3 Non -Operating Revenue $ 15,000.00 $ 15,000.00 $ 15,000.w $ 15,000.00 $ 15,000.00 $ 15,000.00 4 User Fees $ 6,942,939.32 $ 7,866,478.71 $ 8,681,609.30 $ 9,506,184.34 510,394,369.16 $ 11,428,792.61 5 Total Revenue 5 6,957,939.32 $ 7,881,478.71 $ 8,696,609.30 $ 9,521,184.34 $10,409,369.16 $ 11,443,792.61 t 6 Operations Expenses: 7 Collection System Maintenance $ 1,935,415.00 $ 2,015,522,43 $ .,099,7i3.667 $ 2,184,253,96 : 2,263,206.29 $ 2,341,467,45 B Metro and JPA costs - Low Projection $ 5,538,334.71 $ 6,205,956.28 $ 8,572,395.68 $ 7,681,930.38 $ 5,531,162.87 $ 5,807,325.16 9 Total Operations Expenses $ 7,473,749.71 $ 8,221,478.71 $ 10,671,609.30 $ 9,866,184.34 $ 7,794,369.16 $ 8,148,792.61 10 Capital Improvement Program: 11 Collection System CIP $ - $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000,00 $ 2,000,000.00 12 Total Expenses $ 7,473,749.71 $ 10,221,478.71 $ 12,671,609.30 $ 11,866,184.34 $ 9,794,369,16 $ 10,148,792.61 13 Fund Balance Prior to Reserves $15,014,450.61 $ 12,674,450.61 ' $ 8,699,450.61 $ 6,354,450.61 $ 6,969,450.61 $ 8,264,450.61 14 Reserve Targets: 15 Operations/Cash Flow $ 3,736,874.86 $ 4,110,739.36 $ 5,335,804.65 $ 4,933,092.17 $ 3,897,184.58 $ 4,074,396.31 16 Metro Cash Flow $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 17 Emergency/Nat. Disaster $ 1,245,624.95 $ 1,370,246.45 $ 1,778,601.55 $ 1,644,364.06 $ 1,299,961.53 $ 1,358,132.10 18 Capital Expansion Reserve $ 1,000,900.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 19 Capital Replacement Reserve $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 20 Total Recommended Reserves . $ 11,382,499.81 $ 11,880,985.81 $ 13,514,406.20 $ 12,977,456.23 $ 11,595,246.11 $ 11,832,528.41 21 Fund Balance Cover/(Unde)rTarget $ 3,631,950.80 $ 793,464.80 $ (4,814,955.59) $ (6,623,905.62) $ (4,626,795.50/ $ [3,568,077.80i 22 (Use)/Replacement of Reserves $ (515,810.39) $ (2,340,O00.00; $ (3,975,000.00} $[2,3.45,000.001 $ 515,09.00 $ 1,295,000.00 City of National City — Sewer Rate Study 2017 NV5 156 of 297 2. Based on cost of service and projected revenue requirements the City should adopt the following sewer service charges. Table 1-4 shows the proposed sewer charges for FY 2019 through FY 2023 and compares them to existing charges. Table 1-4: Recommended Annual Scwc. Sc.,:cc Charges User Class Current 2019 2020 2021 2022 2023 Residential: $ Per Month Singie Family $ 32.08 $ 35.23 $ 38.68 $ 42.47 $ 46.61 $ 51.18 Multi-family/Condo $ 25.00 $ 27.48 $ 30.17 $ 33.13 $ 36.36 $ 39.92 Mobile Homes $ 19.50 $ 21.49 $ 23.60 $ 25.91 $ 28.43 $ 31.22 ,Non -Residential: $ Per HCF Commercial - Low $ 3.03 $ 3.61 $ 3.97 $ 4.35 $ 4.78 $ 5.25 Commercial - Medium Low $ 3.12 $ 3.89 $ 4.33 $ 4.73 $ 5.13 $ 5.66 Commercial - Medium $ 4.09 $ 4.69 $ 5.37 $ 5.76 $ 6.13 $ 6.80 Commercial - Medium High $ 4.90 $ 5,48 $ 6.40 $ 6.80 $ 7.12 $ 7.95 Commercial - High $ 6.12 $ 6.82 $ 8.14 $ 8.55 $ 8.79 $ 9.88 City of National City - Sewer Rake Study 2017 NV5 157 of 297 Figure 1-1 summarizes all San Diego Metro Member Agencies comparative sewer user rates based on 7 HCF ofwater usage/sewer flow and a residential monthly base fee. it should be rioted that the rates shown are those effective July i, 2017. The figure also includes the City's current monthly rate as well as the proposed FY 2019 rate of $35.23 per EDU per month. The City's first proposed rate adjustment will not begin until July 1, 2018. By that time the majority of these rates will be 5% to 10% higher as ail agencies except San Diego either have adopted current rate cases or are in the process of updating their current rate cases to phase in the required Pure Water Program costs. Even with the proposed 5-year rate adjustments National City will still enjoy some of the lowest rates among the users of the San Diego Metro System. The proposed FY 2019 single family rate will be as low as 35.23 which is 37% lower than the existing (FY 2018) average Metro member agency rate of $50.82. $80 580 570 560 550 $40 530 520 510 5- Figure 1-1 Metro Member Agencies Sewer Rates Comparison Monthly Sewer Rate Comparison for Participating Agencies in San Diego Metro System Based on 7 units of water and 3/4 inch Residential metersire for sewer billings established by January 201E gel c se" c"Id . . cpee Flat Sewer Rate Water Consumption Based Sewer Rate National City Rate City of National City — Sewer Rate Study 2017 e NVS 158 of 297 3. The City should establish a definitive reserve policy to protect the financial integrity of their sewer enterprise fund. The following operational and capital reserves are recommended: Operations/Cash Flow Reserve 'operations The operating reserve provides working capital for day-to-day arid helps to absorb f iuctLations in cash balances due to routine difference in revenue and expense cycles. The I City of National City places their sewer service charges on the annual County of San Diego Property Tax Roll for cost effective and efficient collection of these char -;;es. Therefore a 50% cash flow reserve is recommended. Metro Cash Flow Reserve In 2015 San Diego provided the City with a draft financing plan for the Pure Water Program which established National City's non -debt funded portion of the program to be $4.4 million in estimated pay -go expenses. It is recommended that the City establish a Metro Cash flow Reserve in this amount to be used to offset unplanned cost increases for this project ' Emergency/Natural Disaster Reserve Recent historic events such as Hurricanes Harvey & Irma have only emphasized the need for an agency to have additional monies set aside to pay for unforeseen events such a restoring service to flooded pump stations, etc. It is recommended that this reserve be established at a minimum of 60-days of operating cash. This would provide cash -flow until the City is able to secure outside funding and/or FEMA reimbursements. Capital Expansion and Replacement Reserves The expansion and replacement reserve provides funding for replacement, repair, or rehabilitation of wastewater ;infrastructure due to routine capital project planning or in the event of catastrophic failure of a major system asset. The City's current master plan estimates these needs to be $2 million per .veer and thus we are recommending that the reserve be !established at this level. City of National City — Sewer Rate Study 2017 9 NVS 159 of 297 4. N S recommends that the City provide a provision to give the City the ability to pass through City of San Diego wholesale transportation, treatment, and disposal costs to customers should those costs rise beyond projections in the cost of service model or beyond what the City notices to customers at time of rate implementation. This action would obviate the need for the City to conduct another Proposition 218 mailed 45-day notice and public nearing requirement The authority to provide this provision is located in California Government Code Section 53756. Specifically, the Government Code reads as follows: An agenev providing water, wastewater sewer, or refuse collection service may adopt a schedule of fees or charges authora;ing automatic adjustments that pass through increases in wholesale charges for hater, sewage treatment, or wastewater treatment or adjustments for inflation, fit complies with all of the following:. (a) It adopts the schedule of fees or charger for a proper0-related service for a period not to exceed five years pursuant to Section 53755. (b) The schedule of fees or charges may include a schedule of adjustments, including a clearly, defined formula for adjsrsting for inflation. Any inflation adjustment to a fee or charge for a properly -related service shall not exceed the cost of providing that service. (c) The schedule f fees or charges for an agen y that purchases wholesale water, sewage treatment, or wastewater treatment from a public agency+ may provide for automatic adjustments that pass through the adopted increases or decreases in the wholesale charges for water, sewage treatment, or wastewater treatment established by the other agency. City of National City — Sewer Rate Study 2017 10 NVS 160 of 297 2.0 Introduction This study (Study) takes a long-range planning approach to establishing wastewater service charges and fees. A discussion of the long-range plan and recommended sewer charge and fee adjustments ate included in the following section of this report. The analyses contained herein include operation and maintenance (O&i'f) costs, City of San Diego Metropolitan Wastewater Department (Metro) transportation, treatment and disposal costs, reserve levels, and identified capital improvement projects (CIP). To that end, the Study examines the revenues generated by the City and makes recommendations for revenue adjustments, as needed, The City retained NV5 in 2017 to update a wastewater cost of service study previously developed by PBS&J in FY 2003. Karyn Keese of The Keze Group, LLC, is the lead rate consultant for this Study and was the rate consultant from PBS&J who prepared the FY 2003 study which established the City's sewer user charges from FY 2003 to FY 2006. As stated earlier, the FY 2006 sewer service charges are still in effect today. For purposes of this report, the study period is the fiscal years beginning July 1, 2018 and ending June 30, 2023. Unless otherwise noted, references in this report to a specific year are for the City's fiscal year ending June 30. To avoid confusion between calendar and fiscal years, the term FY refers to the year beginning July 1 and ending June 30. Presented herein are the results of a Study of the City's projected revenues, revenue reciuirements, cost of service, and rates for service. 2.1 Background: City of National City The City provides wastewater service to approximately 17,000 customers within the incorporated area of the City of National City. It owns and operates approximately 100 miles of pipeline, 2,000 manholes, and 2 lift stations. The collection, treatment, and disposal of wastewater in an environmentally safe and efficient manner promote healthy communities and increase the quality of life for local residents. The City is responsible for collecting and conveying wastewater flows originating within the City to the City of San Diego's Point Loma Treatment Plant for treatment and disposal. The City's primary goals are operating the sewerage system safely and efficiently while meeting the needs of their customers. To rncct these goals, the City undertakes routine cleaning, inspections, and repairs and rehabilitates its facilities as needed. The wastewater system operates in an area subject to strict regulatory oversight by Federal and State agencies such as the U.S. Environmental Protection Agency (US EPA) and the California State Water Resources Control Board (SWRCB). The City must comply with a multitude of laws including, but not limited to, State Wastewater Discharge Requhern.ents City of National City — Sewer Rate Study 2017 11 NV5 161 of 297 (WDRs). Complying with these regulations and resulting mandates contributes to a large share of the cost burden on the City's system. The City completed a Wastewater Master Plan in 2011 which will be updated in the near future, this plan identified an average of $2 million per year in required rehabil?ta+don and expansion proiects for the next 9 years following the Plan. These annual projected capital improvement costs (CIP) are incorporated into this Study_ and form the basis for the City's annual capital requirements. 2.2 Backgrounds City of San Diego Metropolitan Sewage Treatment System The City of National City is one of thirteen participating agencies (PAs) who send their wastewater to the City of San Diego Metropolitan Sewage Treatment System (Metro) for treatment and disposal. Along with the other PAs the City entered into the Regional Disposal Agreement with San Diego in 1998. Due to positive financial negotiations with San Diego since that time and especially the establishment of the "Administrative Protocol on Allocation of Operating Reserves and Debt Service Coverage" during FY 2010 the City has enjoyed stable annual billings for the last 8 years from the City of San Diego. However, in 2015 the City of San Diego initiated a multi -billion dollar public works project entitled the Pure Water Program which will provide the double benefit of "secondary equivalency" to San Diego's wastewater customers including National City as well as a significant new potable water supply for the City of San Diego. In September 2016 the City of San Diego provided the PAs with a range of annual costs from FY 2016 through FY 2022 for Phase I of the Pure Water Program. These annual cost increases began with FY 2018 (current fiscal year) and are the basis for establishing the San Diego portion of the revenue requirement developed by this Study. In September 2016 the City of San Diego provided the PAs with a iange of annual E:osts from F`.l 2016 through FY 2022 for Phase I of the Pure Water Program. These proiecticns provided both a low and a high end -of -range. Table 2-1 below summarizes the range of costs provided to National City which are recommended by San Diego to be used in establishing this rate case. After discussions with City staff NV5 is recommending that the Metro low cost numbers be used for this rate analysis, and that a pass -through resolution should be adopted should the costs exceed the Metro low projections, Table 2-1 Summary of Low and High Metro Cost Projections FY18 FY19 FY20 FY21 FY22 FY23 Metro Low Treatment Costs $5,520,749 $6,187,843 $ 8,553,739 $7,662,714 $5.511.370 $5,786,939 Metro Transportation & JPA Cos $ 17,586 $ 18,113 $ 18,657 $ 19,216 . $ 19,793 $ 20,387 Total Metro Low Costs $5,538,3'35 $6,205,956 $ 8,572,396 $7,681,930 $5,531,163 . $5,807.325 9 Metro High Treatment Costs $6,101,880 $6,839,195 $10,264,486 $9,195,257 $6,613,645 $6,944,327 iMetroTransportaticn &.EPA Costs $ 17,586 $ 18,113 $ 18,657 $ 19,216 $ 19,793 $ 20,387 Tot! Moro High Costs $6,119,466 $6,857,308 $10,283,143 $9,214. 13 $6,633,438 $6,964,714 i City of National City — Sewer Rate Study 2017 12 NVS 162 of 297 2.3 Rate Study Summary The City of National City customers enjoy some of the lowest sewer service charges in the Metro System as shown in Figure 2-1 and have for many years. The City last adjusted sewer service charges in FY 2006 and the FY 2018 charge is 38% lower than the average l''.11etro PA rate of $50.82 per month. However, the City's increased internal CIP requirements and the costs associated with the Pure Water Program require that the City adjust their sewer rates for the next five years at an average of 9.8% per year. $$0 180 $70 $60 $50 $40 $30 $20 $10 Figure 2-1 Sewer Rate Comparison for Farticipadtig Agencies in San Diego Metro System opco Monthly Sewer Rate Comparison for Participating Agencies in San Diego Metro System Based on 7 units of water and 3/4inch Residential meter size for sewer billings established by January 2018 Flat Sewer Rate Water Consumption Based Sewer Rate i$1 40 �ec2 4� [FO 3 -05 City of National City — Sewer Rate Study 2017 'i NV5 163 of 297 3.0 Wastewater Rate Study 3.1 Overview of the Sewer Service Charge Update Process A comprehensive rate study typically utilizes three interrelated analyses to address the adequacy and equity of the utility's rates. These three analyses are a revenue requirement analysis, a cost of service analysis, and a rate design analysis. The process is illustrated in Figure 3 -1. Figure 3-1 Overview of the Comprehensive Rate Study Analysis Revenue Requirement Analysis Cost of Service Analysis Rate Design Analysis Compares the sources of funds (revenue) to the expenses of the utility to determine the overall rate adjustment required Allocates the revenue requirements to the various customer classes of service In a "fair and equitable manner Considers both the level and structure of the rate design to collect the target level of service The City's sewer utility was evaluated on a "stand-alone" basis. That is, no subsidies between the utility or other City funds occur. By viewing the utility on a stand-alone basis, the need to adequately fund both operations and maintenance (O&M) and capital infrastructure (CIP) must be balanced against the rate impacts on utility customers. A detailed and comprehensive process was used to review the City's rates. As a part of the rate study process a number of on -site project meeting and conference calls were used to review the results with City management, staff, and the City Council. From this process, final proposed rates were developed and their development is reviewed in this section of the report. Following is a summary of each step in the process. City of National City — Sewer Rate Study 2017 14 NVS 164 of 297 Revenue Requirement Analysis The revenue requirement analysis revealed that several significant financial changes have occurred since the City's 2003 rate study and subsequently adopted sewer user rates. The significant changes are: The 2011 Wastewater Master Plan contains an annual capital re,i,aiix inent of $2 million needed in capital projects for the next 9 years. These costs were not included in the City's FY 2018 adopted budget. The planning phase of the City of San Diego's Pure Water Program has begun and during FY 2018 to FY 2023 additional Metro costs are anticipated for Phase 1 of this program. City of San Diego staff has identified the increased funding level for the participating agencies from the 2010 adopted Protocol level of 365 million to 3128 million per year over the next four -years. The City's portion of this budget is currently 7.4%. National City's increased funding level for the Pure Water Program is included in this rate case. The largest component of the City of National City's revenue requirement is the costs associated with transportation, treatment, and disposal of the City's wastewater by the Metro facilities. A summary of the projected City collection system O&M and CI?, plus San Diego Metro expenses to be included in the City's rate case, are included on Table 3-1. Table 3-1: City of National City Revenue Requirements FY19 FY20 FY21 FY22 FY23 Personnel Services $ 991,191 $ 1,044,152 $ 1,097,540 $ 1,143,891 $ 1,188,573 Maintenance & Operations $ 457,423 $ 471,146 $ 485,280 $ 499,838 $ 514,834 Metro Treatment & Transportation $ 6,205,956 $ 8,572,396 $ 7,681,930 $ 5,531,163 $ 5,807,325 Administrative $ 540,349 $ 556,550 $ 573,257 $ 590,454 $ 508,158 Collection System CEP $ 2,026,560 $ 2,027,356 $ 2,028,177 $ 2,029,022 $ 2,029,893 $10,221,479 $12,671,609 $11,866,184 $ 9,794,369 510,148,793 City of National City — Sewer Rate Study 2017 NVS 165 of 297 Figure 3-2 shows the percentage of each of the major cost centers in the City's rate case. As noted the majority of all required revenue from rates (61%) will be paid directly to the City of San Diego. Figure 3-2 Major Cost Components of City of National City's FY 2019 Revenue Requirements Personnel Service Maintenance &operations Metro Treatment 5. Transportation Ad min istrative Collection System CIP As a part of establishing the revenue requirement for the City's rate case City staff requested NV5 consultant's guidance in establishing a sound reserve policy to financially protect the City's sewer enterprise fund. At the end of FY 2017 (lune 30, 2017) the City's sewer enterprise fund showed a reserve cash fund balance of $15.5 million. NV5 consultants reviewed with City staff industry standard guidelines in establishing formal reserve policies as well as the City's needs for financial stability and potential exposures to external forces which could require unplanned O&M or capital expenditures. After review of these guidelines and exposures the following formal reserve policy is recommended for the City consisting of three cash flow reserves and two capital reserves. The establishment of this reserve policy has been integrated into the proiected revenue requirements for the rate case. Operations/Cash Flow Reserve. The operating reserve provides working capital for -day-to-day operations and helps to absorb fluctuations in cash balances due to routine difference in revenue and expense The City U{NduVLidL �.i..y p1ri.w their ch:iyg-es on the annual County of San Diego Property Tax Roll for cost effective and efficient collection of these charges. The City's fiscal year begins July 1 of each year and must fund their ongoing operations and capital budget requirements starting at that date. However, the City does not receive their first revenues from the tax roll until January of the following year and thus there is a lag of budget funding of six months. Therefore, a 50% cash flow reserve is recommended to allow for the orderly payment of the City's sewer enterprise fund's expenditures throughout the fiscal year City of National City — Sewer Rate Study 2017 16 NVS 166 of 297 Metro Cash Flow Reserve: In 2015 the City of San Diego launched. their Pure Water San Diego Program, a massive public works project, which introduces an additional risk of annual cost overruns to the City's required payments to San Diego for transportation, treatment, and disposal of wastewater collected from the City's customers. In 2015 San Diego provided the City with a draft financing plan for the entire program which established National City's non -debt funded portion of the program to be $4.4 million in estimated pay -go expenses. It is recommended that the City establish a Metro Cash Flow Reserve in this amount to be used to offset unplanned cost increases for this project. Ernergency/NaturalDisaster Reserve: Recent historic events such as Hurricane Harvey have only emphasized the need for an agency to have additional monies set aside to pay for unforeseen events such a restoring service to flooded pump stations, etc. It is recommended that this reserve be established at a minimum of 60-days of operating cash. This would provide cash -flow until the City was able to secure outside funding and/or FEMA reimbursements. Capital Expansion and Replacement Reserves As a participating agency (PA) in the San Diego Metro System the City is required by State and US EPA regulations to maintain reserves that provide for the expansion and replacement of the City's collection system. The expansion and replacement reserve provides funding for replacement, repair, or rehabilitation of wastewater infrastructure due to routine capital project planning or in the event of catastrophic failure of a major system asset. The City's current master plan estimates these needs to be $2 million per year and thus we are recommending that the reserve be established at this level. The final step in determining the revenue requirement for the City's rate case was to overlay the projected expenditures for the next five years as summarized in Table 3-1 and the recommended reserve policy. Table 3-2 creates a long-range plan showing the use of reserves to moderate the annual rate adjustment to 9.8% per year stating in FY 2019 from FY 2018 through FY 2021. The use/replacement of the City's reserves is shown on Line 22. A detailed copy of the five-year revenue requirement is included in Appendix A to this report. City of National City — Sewer Rate Study 2017 NVS 167 of 297 Table 3-2: City of National City Long Range Financial Plan FYE 2018 FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2023 1 Beginning Balance $15,530,261.00 $ 15,014,460.61 $ 11,750,911.22 $ 6,037,241.24 $ 1,128,996.22 5 (1,707,433.63) 2 Rs anue: 3 Non -Operating Revenue $ 15.000.00 $ 15,000.00 $ 15.000.40 $ 15,000.00 $ 15.000.00 • $ 15,000.00 4 User Fees $ 6,942,939.32 $ 6,942,939.32 $ 6,942,939.32 $ 6,942,939.32 $ 5,942,939.32 $ 6.942.939.32 5 Total Revenue $ 6,957,939.32 $ 6,957,939.32 3 6,95'7,939.32' $ 6,957,939.32 $ 6,957,939.32 $ 6,957,939,32 6 Operations Expenses: 7 C;,LBciic.r .,stein, P'r.5i,am„e„1ao ,°,. 1,935,416.00 $ 2,015,622.43 5 2,099,213.62 $ 2,184,253.95 3 2.26 ,203.22 $ 2,341,437.445 6 Metro and JPA costs - Low Projection $ 5,538,334.71 $ 6,205,956.28 $ 8,572,395.68 $ 7,681,930.38 $ 5,531,162.97 $ 5,807,325.16 9 10 Total Operations Expenses $ 7,473,749.71 $ 8,221,478.71 $ 10,671,609.30 $ 9,866,184.34 $ 7,794,369.16 $ 8,148,792.61 11 12 Capital Improvement Program: 13 Collection System CIP $ - $ 2,000,000.00 $ 2,000,000.00 $ 2,060,000.00 $ 2,000,000.00 $ 2,000,000,00 14 Total Expenses $ 7,473,749.71 $10,221,478.71 $ 12,671,609.30 $ 11,566,184.34 ' $ 9,794,369.16 $ 10,148,792.61 15 Fund Balance Prior to Reserves $ 15,014,450.61 $ 11,750,911.22 $ 6,037,241.24 $ 1,128,996.22 $ (1,707,439.63) $ (4,898,286.92) 16 Reserve Targets: 17 Operatiw►sICash Flow S 3,736,874.86 $ 4,110,739.36 5 5,335,604.65 $ 4,933,092.17 $ 3,897,184.58 $ 4.074,396,31 18 Metro Cash Flow $ 4,400,000.00 $ 4,400,000,00 5 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 19 Emergency/Nat Disaster $ 1,245,624.96 $ 1,370,246.45 $ 1,778,601.55 $ 1,644,364.06 $ 1,299,061.53 $ 1,358,132.10 20 Capital Epansion Reserve $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,004,000.00 $ 1,000,000.00 21 Capital Replacement Reserve $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 22 Total Recommended Reserves $ 11,382,499.81 $ 11,880,985,81 $ 13,514,406.20 $ 12,977,456.23 $ 11,596,246.11 $ 11,832,528.41 23 Fund BalanceOverl{Under} $ 3,631,950.80 3 (130,474.59) $ (7,477,164.96) $(11,848,460.01) $(13,303,679.73) $(16,730,815.32) Reserve Target Cost of Service Analysis: The cost of service analysis revealed that several major changes have occurred in users and use since the City's 2003 rate study and subsequently adopted sewer user rates. The significant changes are: As with other communities in San Diego County and Southern California the City's ,:idzens and businesses have decreased their water usage significantly since FY 2003. This has decreased revenues from the commercial and industrial users of the City who are billed or their annual water usage The City uses an equivalent dwelling unit (EDU) system of rates for their residential users. Historically the City has used 280 gallons per day (gpd) for a single family residential user for billing purposes. Multi-family/condo units are considered to be 0,7$ EDU and mobile home units 0.61 EDUs. These EDUs are consistent with industry standards for EDU based user systems. However, due to the decreased water use by residential as well as commercial/industrial users the gallons per EDU have decreased to an estimated 240 gpd. 240 d is consistent with the majority of the PAs wastewater generation rate (in gpd) for EDUs such as the County of San Diego and the w't7,7 of Ta -man City of National City - Sewer Rate Study 2017 18 NY! 168 of 297 The City's rate model was updated with the number of residential and commercial/industrial users used for billing purposes on the FY 2018 tax roll. As noted above the gallons for residential EDUs were revised to 240 gpd per EDU and the most recent water usage for cornrriercial/industrial users was included. Table 3-3 summarizes the current number of City users and their projected sewer flows based on the current tax roll water use data for F i 2018. Table 3-3: Summary of Current Users and Esti.-rated Sewer Flow Units of Service and Loadings FLOW: BOD: SS: (A) (0) (C) (D) 1E) (F) (G) No. of Active Annual Flow Annual BOD Annual User Group Customers Total Flow Total Flow (MG/Year)HOD User Load SS per User Load (MGD) (I1CF) (MG/L) (LBSIYR) (MGIL) (LBSYR) Single Family 5,673 1.4095 514.47 200 858,118 200 858,116� Mu5-family/Condo 9,840 1.6420 672.35 200 1,121,439 200 1,121,439i Mobile tomes 370 0.0542 19.77 200 32,977 200 32,977 Subtotal- Residential 16,083 3.3D57 0 1,206.59 2,012,532 2,012,532j Commercial - Low' 770 0.7045 343,530 257.13 200 428,882 200 428,88 Commercial - Medium Low 203 0.1495 72,891 54.56 200 91,001 300 136,502 Commercial - Medium 8 0.0387 1 B,858 14.12 400 47,087 400 47,087 Commercial - Medium High 90 0,1014 49,445 37.01 600 185,190 500 154,325 Commercial - High 29 0.0482 23,494 17.59 680 99,726 900 131,991 Subtotal Non -Residential 1,100 1.0422 508,218 380.40 851,887 898,7871 TOTAL 17,183 4.3479 598,218 1,586.09 2,864,419 2,911,3191 Rate Design Analysis: As part of the rate setting process a routine review of an agency's sewer service charge rate structure is performed. This is done to assure that the agency's rate structure meets iridusty standards as well as complies with local, State, and Federal guidelines and regulations. The City of National City first established their current rate structure in the mid-1990's and it was submitted to the State Water Resources Control Board of the State of California (SW_!tCti) and the US EPA. The rate structure and the cost allocations upon which it is based were approved by both the SWRCB and the US EPA. These principles still meet industry standards today and follows Best Management Practices (Bl1+IP's) established by the State of California, and thus there are no recom*nended changes to the existing rate structure. The City uses a combination of EDU's for residential users and water based rates for commercial/industrial users. Single family residential users are considered to be 1 EDU, and multi- family/condo users 0.78 EDU, and mobile home users 0.61 EDU. Commercial/industrial users are grouped based on their estimated sewage strengths into Eve classes of users. Each year 90% of the prior year's water usage per commercial/industrial customer is used to determine the upcoming year's sewer service charge. City of Nationa! City — Sewer Rate Study 2017 19 NV5 169 of 297 All classes of users will continue to be billed their annual sewer service charge on the County of San Diego tax roll based on either their EDU classification or their annual water usage and sewage strength category. Table 3-4 compares the current FYE 2018 sewer rates w-i :h the proposed FYE 2019 through FYE 2023 of the proposed rate case. The entire output from the rate model showing all steps in the rate case is contained in Appendix A to this Study Table 3-4: Comparison of Current Versus Proposed Sewer User Rates User Class Current 2019 2020 2021 2022 2023 1 Residential: $ Per Month Single Family $ 32.08 $ 35.23 $ 38.68 $ 42.47 $ 46.61 $ 51.18 Multi-family/Condo $ 25.00 $ 27.48 $ 30.17 $ 33.13 $ 36.36 $ 39.92 Mobile Homes $ 19.50 $ 21,49 $ 23.60 $ 25.91 $ 28.43 $ 31.22 Non -Residential: $ Per HCF Commercial- Low $ 3.03 $ 3.61 $ 3.97 $ 4.35 $ 4.78 $ 5.25 Commercial - Medium Low $ 3.12 $ 3.89 $ 4.33 $ 4.73 $ 5.13 $ 5.66 Commercial - Medium $ 4.09 $ 4.69 $ 5.37 $ 5.76 $ 6.13 $ 6.80 Commercial - Medium High $ 4.90 $ 5.48 $ 6.40 $ 6.80 $ 7.12 $ 7.95 Commercial - High $ 6.12 $ 6.82 $ 8.14 $ 8.55 $ 8.79 $ 9.88 As discussed earlier in this report, the majority of the revenue requirement recovered by the City's sewer service charges go to pay for cost associated with charge from San Diego Metro. Figure 3-3 summarizes the major components of the proposed FY 2019 monthly single family sewer service charge of $35.23 per EDU. This figure also shows the use of City reserves to phase in the Pure Water Program and City CIP costs: Figure 3-3 Components of FY 2019 Single Family Monthly Rate Components of FY 2109 Single Family Monthly Rate City of National City - Sewer Rate Study 2017 San Diego Metro National CityCiP NC Collection System Use of Reserves NVS 170 of 297 Figure 3-4 summarizes all San Diego Metro Member Agencies comparative sewer user rates based on 7 HCF of water usage/sewer flow and a residential monthly base fee. It should be noted that the rates shown are those effective July 1, 2017. The City's first proposed rate ad=ustment is not until July 1, 2018. By that time the majority of these rates will be 5% to 10% higher as all agencies except San Diego either have adopted current rate cases or are in the process of upc ating their current rate cases to phase in the required Pure Water Program costs. Even with the proposed 5-year rate adjustments National City will still enjoy some of the lowest rates among the users of the. San Diego Metro System. The proposed FY 2019 single family rate will be as low as $35.23 which is 37% lower than the existing (FY 2018) average Metro member agency rate of $50.82 $90 $80 $70 $60 $50 $40 $30 320 $90 5- a,, � �°# 66' , 1��Qs �� ' - cif {yo ,� � Figure 3-4 Metro Member Agencies Sewer Rate Comparison Monthly Sewer Rate Comparison for Participating Agencies in San Diego Metro System Based on 7 units of water and 3/4inch Residential meter size for sewer billings established by January 2018 Flat Sewer Rate Water Consumption Bated Sewer Rate Nationa i City Rate City of National City — Sewer Rate Study 2017 21 NY! 171 of 297 Appendix A Rate Model e Assumptions • Wastewater Operations & Maintenance Budget • Budget Summary • Step 1 — Customer Summary and Estimated Flows o Step 2 — Determination of Unit Costs • Step 3 — Sewer User Rate Calculations by Fund and Cost City of National City - Sewer Rate Study 2017 172 of 297 GAUFORNJA._ ilitoompoBATED NOTICE OF PUBLIC HEARING to Consider Proposed Adjustments to Sewer Service Charges Tuesday, December 5, 2017, 6:00 p.m. Proposition 218 Pursuant to Article XIIID of the California Constitution and the Proposition 218 Omnibus Implementation Act, the City of National City (the "City) hereby gives notice that a public hearing will be held on December 5, 2017, at 6:00 PM, or as soon as possible thereafter as the matter can be heard, at the regularly scheduled City Council meeting. The public hearing will be held in the Council Chamber of the Civic Center, located at 1243 National City Boulevard, National City, California. Upon conclusion of the public hearing, the City Council will consider a proposed increase to the cost the City charges for sewer service for Fiscal Year 2018/19 through 2022/23. If approved, the rate adjustment will become effective on customers' 2018/19 property tax bills. For more detailed information on how the sewer rates were calculated, copies of the NV5 rate study analysis (see below) are available at http://www.nationalcityca.gov/QovernmentUengineerinq-public- works/engineering-division/sewer-service or at the Engineering / Public Works Department, located at 1243 National City Boulevard, National City, California, 91950, Telephone No. (619)-336-4580. Reason for Proposed Rate Increase The City is provided wastewater treatment and disposal services by the City of San Diego's Metropolitan Wastewater System ("Metro"). The proposed rate adjustments will allow the City to collect sufficient revenue so the City may continue providing sewer service to customers in the face of sharply increasing operating costs from Metro to fund the Pure Water Program. The proposed rate adjustments will also enable the City to pay for capita[ improvements that are essential for operating the sewer system in a safe and financially prudent manner. Revenues derived from the City's sewer service charges, and any adopted adjustments described in this notice, will be used solely for the actual and necessary expenses of providing sewer service to customers, The City Is prohibited by law from making a profit on sewer service. Eng nccri, g & Public Works Department 1243 National City Boulevard, National City, CA 91950-4301 (619) 336-4380 Engineering * (619) 336-4580 Public Works * Fax (619) 336-4397 www.nationalcityca.gov 173 of 297 `G IiFORJ41A. DBORi D The City elected to conduct a comprehensive review of its sewer rates for all users to ensure the long term stability of its sewer services. The new proposed rate increases are based on a September 2017 rate study titled "City of National City Sewer Rate Study" ("Study") conducted by NV5, a well -respected engineering and consulting firm. NV5 considered all sewer -related factors described in this notice, in addition to other, more specific information described in the Study, in conducting their sewer rate analysis. The Study, and its underlying rate methodology, is available at http://www. patio na lcitvca .govirtovernme ntlenq i neerinq-public-works/engi neeri no- division/sewer-service. Copies of the Study are also available at the Engineering/ Public Works Department at the Civic Center. The Study's underlying rate methodology will be discussed in more detail at the December 5th public hearing. Protest Procedure The property owner of record may file a written protest to the proposed rate adjustment. Property owners do not have to attend the public hearing in order to file a protest. Protests may be mailed to: City Clerk, 1243 National City Boulevard, National City, California 91950. If protesting by mail, please write on the front of the envelope that the enclosed letter of protest is for the proposed sewer rate adjustments. All protests must be received before the close of the public comment portion of the public hearing on December 5, 2017. Any protests received after that date and time, even if postmarked on or prior to that date, will not be counted. Any protest received via e-mail, fax, or other electronic means shall also not be counted. The signature on the protest must be that of the property owner of record and be an original signature. Protests with copies of signatures will not be counted. Oral comments do not qualify as a protest, unless accompanied by a written protest. While customers who live on property owned by others may attend the public hearing, the City will only count written protests filed by property owners. Only ono valid protest per parcel will be counted. In order to be counted, each protest must contain the following: 1. State that the property owner of record does not agree with the proposed rate increase. Engineering & Public Works Department 1243 National City Boulevard, National City, CA 91950-4301 (619) 336-4380 Engineering * (619) 336-4580 Public Works * Fax (619) 336-4397 www.nationalcityca.gov 174 of 297 canvas, s n 2. Identify the location of the parcel by street address, assessors parcel number (APN) listed on the address label of your envelope, or City account number. 3. Provide the printed name and original signature of the property owner submitting the protest. 4. If you wish to protest and you own multiple properties, you may file one valid protest for each parcel that you own. Only one protest will be counted per parcel. For example, if you own five parcels and you wish to file protests for each of your properties, you must file five separate protests. 5. If you wish to protest and your parcel is owned by more than one person, or by a corporation or other legal entity, you may only file one protest for that parcel. Proper documentation must be provided showing that the person who signs the protest has the authority to sign on behalf of the other owners, corporation, or legal entity. 6. If the name of the property owner was not shown on San Diego County's last equalized assessment roll as the owner of record, you must provide the City with a certified copy of a recorded deed. Individuals with disabilities, who require reasonable accommodation under the Americans with Disabilities Act in order to participate in the public hearing, should contact the City Clerk's Office as far in advance of the public hearing as possible. Proposed Increases The City last adjusted sewer service charges in FY 2006. The NV5 Study showed that, over the next five years, current sewer service revenues will not meet the increasing cost of City operating and capital expenses. The City system of sewer service charges meets regulatory and industry standards and the current rate schedule reflects the proper elements of a cost -of -service -based rate structure. No structural changes to the current system of charges will be made. Based upon the Study, rate increases will be considered for each of the Citv's four distinct sewer customer groups: (1) single-family residential; (2) multi -family; (3) mobile home parks; and (4) commercial/industrial. The City maintains a specific sewer charge formula for each of these four customer groups. Single family, multi -family, and mobile home customers are billed flat rates based on a system of equivalent dwelling units established for each of theso three customer groups. Commercial/industrial users are placed into one of five rate categories Engineering & Public Works Department 1243 National City Boulevard, National City, CA 91950-4301 (619) 336-4380 Engineering * (619) 336-4580 Public Works* Fax (619) 336-4397 www.nationalcityca.gov 175 of 297 4 ' CALIPORNIA based on (1) their respective sewage strengths, and (2) 90% of the users' total water usage from the prior year. The following rate table contains the recommended sewer service charges that the City Council will consider for adoption at the public hearing: User Class Current I 2019 I 2020 I 2021 2022 2023 Residential: $ Per Month Single Family $ 32.08 $ 35.23 $ 38.68 $ 42.47 $ 46.61 $ 51.18 Multi-family/Condo $ 25.00 $ 27.48 $ 30.17 $ 33.13 $ 36.36 $ 39.92 Mobile Homes $ 19.50 $ 21.49 $ 23.60 $ 25.91 $ 28.43 $ 31.22 Non -Residential: $ Per HCF Comm erdal - Low $ 3.03 $ 3.61 $ 3.97 $ 4.35 $ 4.78 $ 5.25 Commercial - Medium Low $ 3.12 $ 3.89 $ 4.33 $ 4.73 $ 5.13 $ 5.66 Commercial - Medium $ 4.09 $ 4.69 $ 5.37 $ 5.76 $ 6.13 $ 6.80 Commercial - Medium High $ 4.90 $ 5.48 $ 6.40 $ 6.80 $ 7.12 $ 7.95 Commercial - High $ 6.12 $ 6.82 $ 8.14 $ 8.55 $ 8.79 $ 9,88 Pass -Through Costs The above -proposed rate table is based, in part, on projections provided by Metro. The City will not pass through to customers any increases to wholesale treatment costs from Metro that exceed the amounts listed in the rate table above. The City will provide customers at least 30 days' notice before the effmtive date of any adjustment reflected in the rate table above. !f you have any questions about this process, or this notice in general, please contact the Engineering / Public Works Department at (619)-336-4580. Engineering & Public works Department 1243 National City Boulevard, National City, CA 91950-4301 (619) 336-4380 Engineering * (619) 336-4580 Public Works * Fax (619) 336-4397 www.nationalcityca.gov 176 of 297 ORDINANCE NO. 2017- A PUBLIC HEARING ON THE INTRODUCTION OF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REPEALING AND REENACTING, AS AMENDED, ORDINANCE NO. 2003-2226 ESTABLISHING SEWER SERVICE CHARGES FOR FISCAL YEARS 2018-19, 2019-20, 2020-21, 2021-22, AND 2022-23 WHEREAS, the City of National City (the "City") recently retained NV5, Inc. to document the development of a wastewater multi -year financial plan, cost of service analysis, and rate design for the City; and WHEREAS, on October 3, 2017, the city council accepted the September 2017 "Sewer Rate Study" prepared by NV5, Inc. which recommended increasing sewer service charges to reflect current costs of providing sewer service to customers within the City; and WHEREAS, on October 7, 2017 the City mailed the "Notice of Public Hearing to Consider Proposed Adjustments to Sewer Service Charges" to all National City Property Owners to satisfy the notice requirements of Proposition 218; and WHEREAS, on December 5th no majority protest of such property owners was presented upon conclusion of the Public Hearing to Consider Proposed Adjustments to Sewer Service Charges; and NOW, THEREFORE, BE IT ORDAINED that, in order to meet the current costs of providing sewer service to customers within the City, as explained in NV5's "Sewer Rate Study," the City Council of the City of National City does hereby approve and adopt the sewer service charges for fiscal years 2018-19, 2019-20, 2020-21, 2021-22, and 2022-23 as set forth in the attached Exhibit "A," which is incorporated herein by reference, effective as of January 18, 2018, Section I This Ordinance shall take effect and be in force thirty (30) days from the date of its passage, and before the expiration of fifteen (15) days after its passage, it or a summary of it, shall be published once, with the names of the members of the City Council voting for and against the same in the San Diego Union Tribune, a newspaper of general circulation published in the County of San Diego, California. Section 2 The city council declares that the judicial invalidity of any subsection or portion of this chapter shall not affect the validity of any other remaining section or portion; that the city council would have adopted each of those remaining portions, notwithstanding any later declared invalidity. If any provision determined invalid under the preceding sentence can either be ludiciallr severed or interpreted in a :"fay that could harmonize it with the remaining. Page 1 of 2 Ordinance. o. 2017 — 177 of 297 provisions, then it may be severed or interpreted and applied so as to give full purpose, meaning, and effect to the remaining provisions of this chapter. Section 3 The proposed action is exempt from the California Environmental Quality Act ("CEQA") under Section 15061(b)(3) — general rule; the project is not considered a project under CEQA as there is no possibility that the activity raised by this ordinance may have a significant impact on the environment; the city currently charges sewer services fees that are eleven years old, and, by this ordinance, will substitute the existing fee schedule with an updated schedule. PASSED, APPROVED and ADOPTED by the City Council of the City of National City, State of California, this 19th day of December, 2017, by the following vote: AYES: NOES: ABSENT: Page 2of2 Ordinance No. 2017 — 178 of 297 EXHIBIT "A" User Class Current 2019 2020 2021 2022 2023 Residential: $ Per Month Single Family $ 32.08 $ 35.23 $ 38.68 $ 42.47 $ 46.61 $ 51.18 Multi-family/Condo $ 25.00 $ 27.48 $ 30.17 $ 33.13 $ 36.36 $ 39.92 Mobile Homes $ 19.50 $ 21.49 $ 23.60 $ 25.91 $ 28.43 $ 31.22 Non -Residential: $ Per HCF Commercial - Low $ 3.03 $ 3.61 $ 3.97 $ 4.35 $ 4.78 $ 5.25 Commercial - Medium Low $ 3.12 $ :3.89 $ 4.33 $ 4.73 $ 5.13 $ 5.66 Commercial - Medium $ 4.09 $ 4.69 $ 5.37 $ 5.76 $ 6.13 $ 6.80 Commercial - Medium High $ 4.90 $ 5.48 $ 6.40 $ 6.80 $ 7.12 $ 7.95 Commercial - High $ 6.12 $ 6.82 $ 8.14 $ 8.55 $ 8.79 $ 9.88 Page 1 of 1 179 of 297 ORDINANCE NO. 2017 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REPEALING ORDINANCE NO. 2003-2226, AND ADOPTING AN ORDINANCE ESTABLISHING SEWER SERVICE CHARGES FOR FISCAL YEARS 2018-19, 2019-20, 2020-21, 2021-22, AND 2022-23 WHEREAS, the City of National City retained an outside consultant to perform a sewer rate study in order to develops a wastewater multi -year financial plan, cost of service analysis, and rate design for the City; and WHEREAS, on October 3, 2017, the City Council considered the September 2017 Sewer Rate Study that recommended increasing sewer service charges to reflect current costs of providing sewer service to customers within the City. The 2017 Sewer Rate Study is available for inspection in the Office of the City Clerk; and WHEREAS, on October 7, 2017. the City mailed the Notice of Public Hearing to Consider Proposed Adjustments to Sewer Service Charges to all National City property owners to satisfy the notice requirements of Proposition 218; and WHEREAS, on December 5, 2017, no majority protest of such property owners was presented upon conclusion of the noticed Proposition 218 Public Hearing to Consider Proposed Adjustments to Sewer Service Charges. NOW, THEREFORE, BE IT ORDAINED that the City Council of the City of National City hereby repeals Ordinance No. 2003-2226, adopted on July 8, 2003, that established sewer service charges for Fiscal Years 2018-19, 2019-20, 2020-21, 2021-22, and 2022-2306. BE IT FURTHER ORDAINED that in order to meet the current costs of providing sewer service to customers within the City, as established in the "Sewer Rate Study", the City Council of the City of National City hereby approves, adopts, and authorizes the sewer service charges for fiscal years 2018-19, 2019-20, 2020-21, 2021- 22, and 2022-23, as set forth in the attached Exhibit "A", which is incorporated herein by reference, effective as of January 18, 2018. Section 1. This Ordinance shall take effect and be in force thirty (30) days from the date of its passage, and before the expiration of fifteen (15) days after its passage, it or a summary of it, shall be published once with the names of the members of the City Council voting for and against the same in a newspaper of general circulation published in the County of San Diego. Section 2. The City Council declares that the judicial invalidity of any subsection or portion of this Chapter shall not affect the validity of any other remaining section or portion; that the City Council would have adopted each of those remaining portions, notwithstanding any later declared invalidity. If any provision determined invalid under the preceding sentence can either be judicially severed or interpreted in a way that could harmonize it with the remaining provisions, then it may be severed or interpreted and applied so as to give full purpose, meaning, and effect to the remaining provisions of this Chapter. 180 of 297 Section 3. The proposed action is exempt from the California Environmental Quality Act ("CEQA") under Section 15061(b)(3) — general rule; the project is not considered a project under CEQA as there is no possibility that the activity raised by this Ordinance may have a significant impact on the environment; the City currently charges sewer services fees that are eleven years old and, by this ordinance, will substitute the existing fee schedule with an updated schedule. PASSED and ADOPTED this day of , 2017. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ordinance No. 2017- Ron Morrison, Mayor Page 2 of 3 Establishing Sewer Rate Charges , 2017 Fiscal Years 2019, 2020, 2021, 2022, 2023 181 of 297 EXHIBIT "A" User Class Current 2019 2020 2021 2022 2023 Residential: $ Per Month Single Family $ 32.08 $ 35.23 $ 38.68 $ 42.47 $ 46.61 $ 51.18 Multi-family/Condo $ 25.00 $ 27.48 $ 30.17 $ 33.13 $ 36.36 $ 39.92 Mobile Homes $ 19.50 $ 21.49 $ 23.60 $ 25.91 $ 28.43 $ 31.22 Non -Residential: $ Per HCF Commercial - Low $ 3.03 $ 3.61 $ 3.97 $ 4.35 $ 4.78 $ 5.25 Commercial - Medium Low $ 3.12 $ 3.89 $ 4.33 $ 4.73 $ 5.13 $ 5.66 Commercial - Medium $ 4.09 $ 4.69 $ 5.37 $ 5.76 $ 6.13 $ 6.80 Commercial - Medium High $ 4.90 $ 5.48 $ 6.40 $ 6.80 $ 7.12 $ 7.95 Commercial - High $ 6.12 $ 6.82 $ 8.14 $ 8.55 $ 8.79 $ 9.88 Ordinance No. 2017- Page 3 of 3 Establishing Sewer Rate Charges , 2017 Fiscal Years 2019, 2020, 2021, 2022, 2023 182 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 183 The following page(s) contain the backup material for Agenda Item: Public Hearing on the Introduction of an Ordinance of the City Council of the City of National City amending Title 11, Section 11.16.010 Speed Zones Designated, of the National City Municipal Code establishing speed limits on various roadways based on ce 183 of 297 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 5, 2017 AGENDA ITEM NO. ITEM TITLE: A Public Hearing on the introduction of an Ordinance of the City Council of the City of National City amending Title 11, Section 11.1ti.U1U — Speed Zones Designated, of the National City Municipal Code establishing speed limits on various streets based on certified Engineering and Traffic Surveys PREPARED BY: Stephen Manganielio PHONE; 619-336-4382 EXPLANATION: See attached. DEPARTMENT: Engineering/Public Works APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: NIA ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Introduce Ordinance for first reading. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1, Explanation 2. Speed Survey Summary and Recommendations 3. Ordinance 184 of 297 Explanation Section 22357 of the State of California Vehicle Code (CVC) permits !ocal authorities, by ordinance, to establish speed limits greater than the prima facie speed limit of 25 miies per hour (MPH) when, on the basis of an engineering and traffic survey, the local authority determines that a speed greater than 25 MPH would facilitate the orderly movement of vehicular traffic and would be reasonable and safe. Section 40802 of the CVC provides the requirements for use of radar, laser or other electronic devices to measure and enforce vehicle speeds. Section 627 of the CVC and Section 2B.13 of the California Department of Transportation Manual on Uniform. Traffic Control Devices (MUTCD) outline the criteria to be considered as part of conducting an engineering and traffic survey. Engineering and traffic surveys must be completed and certified by a registered professional Civil or Traffic Engineer every five to seven years in accordance with Section 627 of the CVC and Section 2B.13 of the MUTCD, in order to allow National City Police Officers to enforce speed limits using radar, laser or other electronic devices. Furthermore, in accordance with Section 40802 of the CVC, officers must have successfully completed a radar operator course of not less than 24 hours, approved and certified by the Commission on Peace Officer Standards and Training, and the radar, laser or other electronic device used to measure vehicle speeds must be properly calibrated and meet or exceed the minimal operational standards of the National Traffic Highway Safety Administration. Speed zones are primarily established to protect the public from the unreasonable behavior of reckless, unreliable, or otherwise dangerous drivers. Speed limits are generally established at or near the 85th percentile speed, which is defined as the speed at or below which 85 percent of traffic is moving. Speed limits established on this basis conform to the consensus of those who drive on the roadways as to what speed is reasonable and safe, and are not dependent on the judgment of one or a few individuals. The engineering and traffic survey, as defined in Section 627 of the CVC, must consider the prevailing speeds, collision records, pedestrian and bicycle activity, and roadway traffic and roadside conditions not readily apparent to the driver. Therefore, a field review of related roadway conditions and traffic variables is conducted, which is considered in combination with the statistical data and collision history of a particular roadway segment to determine a safe and reasonabie speed limit. The specific procedures used in the performance of an engineering and traffic study are outlined in Section 2B.13 of the MUTCD. For example, "Speed zones (other than statutory speed limits) shall only be established on the basis of an engineering and traffic survey study that has been performed in accordance with traffic engineering practices. The engineering study shall include an analysis of the current speed distribution of free -flowing vehicles." 185 of 297 As further stated in the MUTCD, when a speed limit is to be posted, it shall be established at the nearest 5 mph increment of the 85th percentile speed of free -flowing traffic, with the following exceptions - The posted speed may be reduced by 5 mph from the nearest 5 mph increment of the 85th percentile speed, in compliance with CVC Sections 627 and 22358.5. 2. For cases in which the nearest 5 mph increment of the 85th percentile speed would require a rounding up, then the speed limit may be rounded down to the nearest 5 mph increment below the 85th percentile speed, if no further reduction is used. Refer to CVC Section 21400(b}. If the speed limit to be posted has had the 5 mph reduction applied, then an engineering and traffic survey shall document in writing the conditions and justification for the lower speed limit and be approved by a registered professional Civil or Traffic Engineer. The reasons for the lower speed limit shall be in compliance with CVC Sections 627 and 22358.5. Additionally, the MUTCD recommends that speed zoning with 5-mph increments are preferable in urban areas, and that short speed zones should be avoided. Therefore, adjustments may be made to provide uniform speed zones along a corridor, rather than various fluctuations in posted speed limits. Staff authorized Kimley-Horn and Associates, through an "On-Ca[I" Professional Engineering Services contract, to conduct engineering and traffic surveys for 151 individual roadway segments in National City. The roadway segments selected were confirmed with the National City Police Department prior to conducting the surveys and include all of the Arterial and Collector roadways identified in the National City General Plan Circulation Element. The engineering and traffic surveys were conducted in accordance with Section 627 of the CVC and Section 2E13 of the MUTCD. Attached is a summary of the sr e;. s.irve;: rRsul s and recommendations. Ail of the nertified engineering and traffic surveys with back-up data are on file in the Office of the City_ Engineer. The attached ordinance would amend Title 11, Section 11.16.010 — Speed Zones Designated, of the National City Municipal Code, to establish speed limits for 151 roadway segments in National City and allow for enforcement using radar, laser or other electronic devices based on certified engineering and traffic surveys. Staff supports the findings and recommendations of the certified engineering and traffic surveys and therefore, recommends adoption of the ordinance. Staff will return to City Council: on December 19, 2017, to hold a public hearing and provide a final reading of the Ordinance. If adopted by City Council, the declared prima facie speed limits will not become effective until City Public Works staff erect the appropriate regulatory speed limit signs upon the streets identified in the Ordinance on the basis of the certified engineering and traffic surveys. 186 of 297 TabI! 3: Speed Survey Summary and Recommendations (Page 1 of 8) Location Number Location Name Limits Existing Speed Limit (mph) 85th Percentile Speed (mph) 10 mph Pace col • an •. per Million Vehicles Mlles (ACC/MVM) Average Daily Traffic (ADT) Recommended Speed Limit (mph) Justification and Recommendation 1 Harbor Drive North City Limit to 8th Street 45 MPH 45 MPH 34 43 0.000 23,001 45 MPH Round to nearest 5 mph increment of the 85th a -rcentile s.eed. 2 Harbor Drive 8th Street to Civic Center Drive 40 MPH 48 MPH 39 - 48 0.095 17,567 45 MPH Round 85th percentile speed dcwn; no other reduction taken. 3 Tidelands Avenue Civic Center Drive to 19th Street 35 MPH 38 MPH 28 - 37 0.465 2,902 35 MPH Round 85th percentile speed down; no other reduction taken. 4 Tidelands Avenue 19th Street to Bay Marina Drive 35 MPH 35 MPH 25 - 34 1.784 1,906 35 MPH Round to nearest 5 mph increment of the 85th -rcentile speed. 5 Tidelands Avenue Bay Marina Drive to 32nd Street 35 MPH 37 MPH 24 - 33 0.000 1,260 35 MPH Round to nearest 5 mph increment of the 85th .ercentile speed. 6 Marina Way Bay Marina Drive to 32nd Street 25 MPH 23 MPH 15 - 24 0.000 1,275 25 MPH Round to nearest 5 mph increment of the 85th .ercentile speed. 7 Cleveland Avenue Civic Center Drive to 19th Street 35 MPH 37 MPH 27 - 36 1.327 4,404 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 8 Cleveland Avenue 19th Street to Bay Marina Drive 35 MPH 41 MPH 29 - 38 1.507 4,649 35 MPH Consistency with adjacent segment. 9 McKinley Avenue 14th Street to 19th Street 25 MPH 27 MPH 15 - 24 0.000 502 25 MPH Round to nearest 5 mph increment of the 85th .ercentile s.eed. 10 McKinley Avenue 19th Street to 23rd Street 25 MPH 33 MPH 17 - 26 0.000 679 30 MPH Round 85th percentile speed down; no other reduction taken. 11 Wilson Avenue Civic Center Drive to 18th Street 30 MPH 35 MPH 26 - 35 0.502 3,509 30 MPH Consistency with adjacent segment. 12 Wilson Avenue 18th Street to 24th Street 30 MPH 32 MPH 19 - 28 0.419 3,416 30 MPH Round to nearest 5 mph increment of the 85th .ercentile speed. Hoover Avenue 22nd Street to Mile of Cars Way 30 MPH 28 MPH 15 - 24 0.000 2,998 25 MPH Round 85th percentile speed down; no other reduction taken. 14 Hoover Avenue Miles of Cars Way to 30th Street 35 MPH 41 MPH 30 - 39 0.246 6,179 35 MPH Consistency with adjacent segment. 15 Hoover Avenue 30fh Street to 33rd Street 35 MPH 34 MPH 25 - 34 0.000 3,230 35 MPH Round to nearest 5 mph increment of the 85th .ercentile speed. 16 Roosevelt Avenue Division Street to 4th Street 35 MPH 36 MPH 0.521 4,611 30 MPH Bike facility / bike safety. 17 Roosevelt Avenue 4th Street to 8th Street 35 MPH34 MPH 24 - 33 0.402 5,446 30 MPH Bike facility / bike safety. 18 Roosevelt Avenue 8th Street to Plaza Boulevard 25 MPH 25 MPH 18 - 27 0.000 5,908 30 MPH Consistency with adjacent segment. 19 Roosevelt Avenue Plaza Boulevard to Civic Center Drive 25 MPH 30 MPH 22 - 31 1.036 2,814 30 MPH Round to nearest 5 mph in cement of the 85th percentile speed. City of National City 2016/2017 Citywide Engineering and Traffic Survey October 2017 187 of 297 Table 3: Speed Survey Summary and Recommendations (Page 2 of 8) Location Number Location Name Limits Existing Speed Limit (mph) 85th Percentile Speed (mph) 10 mph Pace Acciaenis per Million Vehicles Miles (ACCIMVM) Average Daily Traffic (ADT) Recommended Speed Limit (mph) Justification and Recommendation L- 20 Roosevelt Avenue Chic Center Drive to 16th Street 30 MPH 32 MPH 21 - 30 0.000 2,547 30 MPH Round to nearest 5 mph increment of the 85th percentile speed. 21 nest Avenue 16th Street to 18th Street 30 MPH 30 MPH 22 31 0.000 1,522 30 MPH Round to nearest 5 mph increment of the 85th percentile speed. 22 National City Boulevard Division Street to 4th Street 30 MPH 36 MPH 27 - 36 0.586 16,800 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 23 National City Boulevard 4th Street to 8th Street 30 MPH 36 MPH 26 - 35 1.386 14,229 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 24 National City Boulevard 8th Street to Plaza Boulevard 30 MPH 33 MPH 21 - 30 0.273 16,103 35 MPH Round to nearest 5 mph increment of the 85th Percentile weed. 25 National City Boulevard Plaza Boulevard to Civic Center Drive 35 MPH 37 MPH 28 37 0.455 12,773 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 26 National City Boulevard Civic Center to 16th Street 30 MPH 38 MPH 26 - 35 0.625 14,058 35 MPH Round 85thpercentile speed down; no other Roundp reduction taken. 27 National City Boulevard 16th Street to 18th Street 30 MPH 35 MPH 25 34 0.673 13,040 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 28 National City Boulevard 18th Street to 24th Street 35 MPH 36 MPH 28 37 0.193 15,157 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 29 National City Boulevard 24th Street to 30th Street 35 MPH 40 MPH 32 - 41 0.261 17,546 35 MPH Consistency with adjacent segment. 30 National City Boulevard 30th Street to South City Limit 35 MPH 37 MPH 30 - 39 0.380 20,307 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 31 D Avenue Division Street to 4th Street 25 MPH 29 MPH 22 - 31 2.051 4,280 25 MPH Round 85th percentile speed down; no other reduction taken. 32 D Avenue 4th Street to 8th Street 25 MPH 27 MPH 18 - 27 1.769 4,948 25 MPH Round to nearest 5 mph increment of the 85th percentile speed. 33 D Avenue 8th Street to Plaza Boulevard 25 MPH 26 MPH 18 - 27 0.000 6,785 25 MPH Round to nearest 5 mph increment of the 85th percentile speed. 34 D Avenue Plaza Boulevard to 16th Street 30 MPH 30 MPH 21 - 30 0.670 6,535 25 MPH Bike facility / bike safety. 35 D Avenue 16th Street to 18th Street 30 MPH 30 MPH 21 - 30 0.000 6,142 25 MPH Bike facility / bike safety. 36 D Avenue 18th Street to 24th Street 30 MPH 3B MPH 28 - 37 0.511 5,707 35 MPH Round 85th percentile speed down; no other reduction taken. 37 D Avenue 24th Street to 26th Street 30 MPH 34 MPH 24 - 33 0.000 4,759 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 38 D Avenue 26th Street to 30th Street 30 MPH 39 MPH 31 - 40 0.000 4,714 35 MPH Round 85th percentile speed dcwn; no other reduction taken. 39 Highland Avenue North City Limit to Division Street 35 MPH 36 MPH 26 - 35 0.000 15,049 30 MPH Consistency with adjacent segment. 40 Highland Avenue Division Street to 4th Street 35 MPH 32 MPH 24 - 33 1.333 13,227percentile 30 MPH Round to nearest 5 mph increment of the 85th speed. 41 Highland Avenue 4th Street to 8th Street 35 MPH 33 MPH 22 - 31 2.899 13,533 30 MPH Round 85th percentile speed clown; no other reduction taken. City of National City 2016/2017 Citywidia Engineering and Traffic Survey October 2017 188 of 297 Table 3: Speed Survey Summary and Recommendations (Page 3 of B) Location Number Location Name Limits Existing Speed Limit (mph) 85th Percentile Speed (mph) 10 mph Pace Acclaerrts per Million Vehicles Miles (ACCIMVM) -- Average Daily Traffic (ADT) -- Recommended Speed Limit (mph) Justification and Recommendation 42 Highland Avenue 8th Street to Plaza Boulevard 35 MPH 30 MPH 21 - 30 1.340 16,407 30 MPH Round to nearest 5 mph increment of the 85th percentile speed. 43 Highland Avenue Plaza Boulevard to 16th Street ' 35 MPH 35 MPH 27 - 36 1.283 20,437 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 44 Highland Avenue 16th Street to 18th Street 35 MPH 1 33 MPH 23 - 32 0.591 22,234 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 45 Highland Avenue 18th Street to 24th Street 35 MPH 35 MPH 27 - 36 0.682 21,403 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 46 Highland Avenue 24th Street to 30th Street 35 MPH 36 MPH 27 - 36 0.971 22,537 30 MPH Peclestrian safety / proximity to school. 47 Highland Avenue 30th Street to South C' Limit 35 MPH 32 MPH 24 - 33 0.355 32,257 30 MPH Round to nearest 5 mph increment of the 85th percentile speed. 48 L Avenue 8th Street to Plaza Boulevard 30 MPH 30 MPH 23 32 1.233 6,057 30 MPH Round to nearest 5 mph increment of the 85th percentile speed. r 49 L Avenue 16th Street to 18th Street 25 MPH 26 MPH 19 - 28 0.000 4,623 25 MPH Round to nearest 5 mph increment of the 85th percentile speed. 50 L Avenue 18th Street to 21st Street I 25 MPH 34 MPH 25 - 34 0.607 4,844 30 MPH Round 85th percentile speed down; no other reduction taken. 51 L Avenue 21 st Street to 24th Street 25 MPH 36 MPH 26 - 35 0.000 4,620 30 MPH Residential density / frequency of driveways. 52 L Avenue 24th Street to 28th Street 25 MPH 29 MPH 22 - 31 0.000 4,467 25 MPH Round 85th percentile speed down; no other reduction taken. . 53 L Avenue 28th Street to 30th Streetpercentile 25 MPH 27 MPH 20 - 29 1.024 4,262 25 MPH Round to nearest 5 mph increment of the 85th speed. 54 Palm Avenue I-805 to Division Street 35 MPH 38 MPH 29 - 38 0.000 23,486 35 MPH Round 85th percentile spud down; no other reduction taken. 55 Palm Avenue Division Street to 4th Street 35 MP •1 35 MPH 28 - 37 0.000 11,498 30 MPH Pedestrian safety / proximity to school. 56 Palm Avenue 4th Street to 8th Street 35 MPH 33 MPH 24 33 0.530 8,269 30 MPH Round 85th percentile speed down; no other reduction taken. 57 Palm Avenue 8th Street to Plaza Boulevard 35 MPH 32 MPH 24 - 33 0.831 7,541 30 MPH Round to nearest 5 mph increment of the 85th percentile speed. 58 Palm Avenue Plaza Boulevard to 16th Street 35 MPH i 32 MPH 26 35 1.021 6,732 30 MPH Round to nearest 5 mph increment of the 85th 1percentile speed. 59 Palm Avenue 16th Street to Street 35 MPH 27 MPH 17 - 26 2.044 4,266 25 MPH Round to nearest 5 mph increment of the 85th percentile speed. 60 Palm Avenue 18th Street to 22nd Street 35 MPFI 27 MPH 16 - 25 0.000 966 25 MPH Round to nearest 5 mph increment of the 85th percentile speed. 61 Newell Street 18th Street to Prospect Street 35 MPH 39 MPH 29 - 38 0.000 2,618 35 MPH Round 85th percentile speed down; no other reduction taken. 62 Grove Street Prospect Street to Sweetwater Road 25 MPH 31 MPH 23 - 32 0.696 1,862 25 MPH Residential density / frequency of driveways. 63 Euclid Avenue North City Limit to Division Street 35 MPH 41 MPH 32 - 41 0.467 12,585 35 MPH Consistency with adjacent segment. 64 Euclid Avenue Division Street to 4th Street 35 MPH 40 MPH 31 - 40 0.171 12,942 35 MPH Pedestrian safety / proximity to school, park. City of National City 2016/2017 Citywide Engineering and Traffic Survey October 2017 189 of 297 Table 3: Speed Survey Summary and Recommendations (Page 4 of 8) Location Number Location Name Limits Existing Speed Limit (mph) 85th Percentile Speed (mph) 10 mph Pace Accidents per Million Vehicles Miles (ACCIMVM) Average Daily Traffic (ADT) Recommended Speed Limit (mph) — Justification and Recommendation 65 Euclid Avenue 4th Street to 8th Street 35 MPH 39 MPH 30 - 39 0.439 15,004 35 MPH Round 85th percentile speed down; no other reduction taken. 66 Euclid Avenue 8th Street to Plaza Boulevard 35 MPH 36 MPH 28 37 1.000 17,894 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 67 Euclid Avenue Plaza Boulevard to 16th Street 35 MPH 39 MPH 31 - 40 0.276 13,771 35 MPH Round 85th percentile speed down; no other reduction taken. 68 Euclid Avenue 16th Street to 18th Street 35 MPH 33 MPH 23 - 32 0.000 12,999 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 69 Euclid Avenue 18th Street to 24th Street 35 MPH 38 MPH 30 - 39 0.267 10,935 35 MPH Round 85th percentile speed down; no other reduction taken. 70 Euclid Avenue 24th Street to Sweetwater Road 45 MPH 42 MPH 33 - 42 0.061 15,198 40 MPH Round to nearest 5 mph increment of the 85th percentile speed. 71 Harbison Avenue Division Street to 4th Street 30 MPH 38 MPH 29 - 38 0.000 4,011 35 MPH Round 85th percentile speed down; no other reduction taken. 72 Harbison Avenue 4th Street to 8th Street 30 MPH 35 MPH 26 - 35 0.642 6,882 30 MPH Residential density / frequency of driveways. 73 Harbison Avenue 8th Street to Plaza Boulevard 35 MPH 35 MPH 27 - 36 1.011 7,344 30 MPH Consistency with adjacent segment. 74 Harbison Avenue Plaza Boulevard to 16th Street 35 MPH 37 MPH 29 - 38 0.276 7,016 30 MPH Pedestrian safety / proximity to school. 75 ?laza Bonita Road Sweetwater Road to Bonita Mesa Road 40 MPH 37 MPH 30 - 39 0.298 4,843 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 76 Plaza Bonita Center Way Valley Road to Sweetwater Roadreduction 35 MPH 43 MPH 35 44 0.000 19,654 40 MPH Round 85th percentile spend down; no other taken. 77 Division Street National City Boulevard to D Avenue 30 MPH 36 MPH 27 - 36 0.443 11,399 30 MPH Consistency with adjacent segment. 78 Division Street D Avenue to Highland Avenue 30 MPH 30 MPH 21 - 30 0.620 14,240 30 MPH Round to nearest 5 mph increment of the 85th percentile speed. 79 Division Street Highland Avenue to Palm Avenue 35 MPH 42 MPH 33 - 42 0.579 12,560 35 MPH Residential density / frequency of driveways. , 80 Division Street Palm Avenue to T Avenue 35 MPH 41 MPH 32 - 41 0.323 16,306 35 MPH Pedestrian safety / proximi y to school. 81 Division Street T Avenue to Euclid Avenue 35 MPH 40 MPH 30 - 39 0.437 16,263 35 MPH Pedestrian safety / proximity to school. 82 Division Street Euclid Avenue to Harbison Avenue 40 MPFI 46 MPH 35 - 44 0.326 15,054 40 MPH Residential density / frequency of driveways. 83 Main Street 1-5 to National City Boulevard 35 MPH 32 MPH 21 - 30 0.982 26,269 30 MPH Round to nearest 5 mph increment of the 85th percentile speed. 84 4th Street National City Boulevard to D Avenue 35 MPH 33 MPH 24 - 33 1.513 4,303 30 MPH Round 85th percentile speed down; no other reduction taken. 85 4th Street D Avenue to Highland Avenue 35 MPH 36 MPH 26 - 35 0.718 6,089 30 MPH Residential density / frequency of driveways. Bike facility / bike safety. City of National City 2016/2017 Citywide Engineering and Traffic Survey October 2017 190 of 297 Table 3: Speed Survey Summary and Recommendations (Page 5 of 8) Location Number Location Name Limits Existing Speed Limit (rn ph) 85th Percentile Speed (mph) 10 mph Pace ACClaents per Million Vehicles Miles (ACCIMVM) Average Daily Traffic (ADT) Recommended Speed Limit (mph) Justification and Recommendation Y 86 4th Street Highland Avenue to Palm Avenue 35 MPH 36 MPH 26 35 1.058 7,223 30 MPH Residential density / frequency of driveways. Bike facility / bike safety. 87 4th Street Palm Avenue to T Avenue 35 MPH 38 MPH 29 - 38 0.480 9,066 35 MPH Round 85th percentile speed down; no other reduction taken. 88 4th Street T Avenue to Euclid Avenue 30 MPH 38 MPH 29 - 38 0.264 8,235 35 MPH Round 85th percentile speed down; no other reduction taken. 89 4th Street Euclid Avenue to Clairmont Avenue 35 MPH 36 MPH 28 - 37 0.000 8,023 30 MPH Bike facility / bike safety. Reverse angle parking. 90 4th Street Clairmont Avenue to Harbison Avenue 35 MPH 37 MPH 28 - 37 0.406 6,374 30 MPH Bike facility / bike safety. Pedestrian safety / proximity to school 91 8th Street Harbor Drive to I- 5 35 MPI-I 36 MPH 27 - 36 0.575 9,150 30 MPH Bike facility / bike safety. 92 8th Street 1-5 to National City Boulevard -7 35 MPH 37 MPH 26 - 35 1.183 22,489 30 MPH Bike facility / bike safety. 93 8th Street National City Boulevard to D Avenue 30 MPH 1 27 MPH 17 - 26 1.220 14,205 25 MPH Round to nearest 5 mph increment of the 85th percentile speed. 94 8th Street D Avenue to Highland Avenue 30 MPH 29 MPH 20 - 29 0.612 14,321 25 MPH Round 85th percentile speed down; no other reduction taken. 95 8th Street Highland Avenue to L Avenue 35 MPH 38 MPH 29 - 38 0.929 14,099 35 MPH Round 85th percentile speed down; no other reduction taken. 96 8th Street L Avenue to Palm Avenuereduction 35 MPH 39 MPH 30 39 0.386 17,082 35 MPH Round 85th percentile speed down; no other taken. 97 8th Street Palm Avenue to Euclid Avenue 35 MPH 41 MPH 32 - 41 1.141 17,185 35 MPH Corsistency with adjacent segment. 98 8th Street Euclid Avenue to Harbison Avenue 35 MPH 39 MPH 30 39 0.761 14,755 35 MPH Round 85th percentile speed down; no other reduction taken. 99 8th Street Harbison Avenue to Plaza Boulevard 35 MPH 38 MPH 26 - 35 0.422 14,179 35 MPH Round 85th percentile speed down; no other reduction taken. 100 Plaza Boulevard Coolidge Avenue to Hoover Avenue 30 MPH 30 MPH 21 - 30 2.985 2,959 25 MPH Bike facility / bike safety. 101 Plaza Boulevard Hoover Avenue to National City Boulevard 30 MPH 22 MPH 16 - 25 1.141 3,797 25 MPH Consistency with adjacent segment. 102 Plaza Boulevard National City Boulevard to D Avenue 30 MPH 37 MPH 25 - 34 0.732 8,858 30 MPH Consistency with adjacent segment. 103 Plaza Boulevard D Avenue to Highland Avenue 30 MPH 37 MPH 28 - 37 0.914 11,985 30 MPH Pedestrian safety / proximity to school. 104 Plaza Boulevard Highland Avenue to Palm Avenue 35 MPH 34 MPH 24 - 33 0.621 16,613 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. i 105 Plaza Boulevard Palm Avenue to I 805 � 35 MPH 39 MPH 30 - 39 0.329 28,593 35 MPH Round 85th percentile speed down; no other reduction taken. City of National City 2016/2017 Citywide Engineering and Traffic Survey 1 October 2017 191 of 297 1'abff. 3: Speed Survey Summary and Recommendations (Page 6 of 8) Location Number Location Name Limits Existing Speed Limit (mph) 85th Percentile Speed (mph) 10 mph Pace Accidents per Million Vehicles Miles (ACCIMVM) Average Daily Traffic (ADT) Recommended Speed Limit (mph) Justthcatlon and Recommendation 106 Plaza BoulevarEuclid35 1-805 to Euclid Avenue MPH 37 MPH 30 - 39 0.288 29,576 35 MPH Round to nearest 5 mph increment of the 85th .ercentile speed. 107 Plaza Boulevard Euclid Avenue to Harbison Avenue 30 MPH 42 MPH 32 - 41 0.905 21,006 35 MPH Pedestrian safety / proximity to school. 108 Plaza Boulevard Harbison Avenue to 8th Street 40 MPH 43 MPH 34 - 43 0.567 15,364 40 MPH Round 85th percentile speed down; no other reduction taken. 109 Paradise Valley Road 8th Street to Plaza Entrada 40 MPH 45 MPH 38 - 47 0.136 25,498 40 MPH Consistency with adjacent: segment. 110 Civic Center Drive Harbor Drive to National City Boulevard 30 MPH 33 MPH 25 - 34 0.614 5,896 30 MPH Round 85th percentile speed down; no other reduction taken. 111 16th Street Wilson Avenue to National City Boulevard 25 MPH 23 MPH 15 - 24 2.313 1,509 25 MPH Round to nearest 5 mph increment of the 85th percentile speed. 112 16th Street National City Boulevard to D Avenue 35 MPH 35 MPH 25 - 34 1.101 5,907 30 MPH Pedestrian safety / proximity to school. 113 16th Street D Avenue to Highland Avenue 35 MPH 38 MPH 28 - 37 0.950 6,890 35 MPH Round 85th percentile speed down; no other reduction taken. 114 16th Street Highland Avenue to L Avenue 35 MPH 35 MPH 27 - 36 0.000 7,828 30 MPH Residential density / frequency cY of driveways. 115 16th Street L Avenue to Palm Avenue 35 MPH 35 MPH 26 - 35 0.498 8,818 30 MPH Residential density / frequency of driveways. 116 16th Street Palm Avenue to Grove Street 35 MPH 37 MPH 27 - 36 0.000 7,999 30 MPH Residential density / frequency of driveways. 117 16th Street Grove Street to Euclid Avenue 35 MPH 34 MPH 25 - 34 0.482 6,362 30 MPH Residential density / frequency of driveways. 118 16th Street Euclid Avenue to Lanoitan Avenue 35 MPH 37 MPH 29 - 38 0.000 9,184 30 MPH I Residential density / frequency of driveways. 119 16th Street Lanoitan Avenue to Harbison Avenue 35 MPI- 36 MPH 28 - 37 0.655 8,386 30 MPH Residential density / frequency of driveways. 120 18th Street Wilson Avenue to National City Boulevard 30 MPH 20 MPH 10 - 19 1.778 3,917 25 MPH Pedestrian safety / proximity to school. 121 18th Street National City Boulevard to D Avenue 35 MPH 35 MPH 27 - 36 1.286 6,737 30 MPH Bike facility / bike safety. 122 18th Street D Avenue to Highland Avenue i 35 MPH 33 MPH 25 - 34 0.270 8,101 30 MPH Round 85th percentile speed down; no other reduction taken. 123 18th Street Highland Avenue to L Avenue 35 MPH 35 MPH 27 - 36 0.880 7,522 30 MPH Residential density / frequency of driveways. 124 18th Street L Avenue to Palm Avenue 35 MPH 37 MPH 28 - 37 1.407 9,320 30 MPH Residential density / frequency of driveways. 125 18th Street Palm Avenue to Newell Street 35 MPH 36 MPH 28 - 37 1.897 8,376 30 MPH Pedestrian safety / proximity to school. Consistency with adjacent segment. City of National City 2016/2017 Citywide Engineering and Traffic. Survey October 2017 192 of 297 Tabby Speed Survey Summary and Recommendations (Page 7 of 8) Location Number Location Name Limits Existing Speed Limit (mph) 85th Percentile Speed (mph) 10 mph Pace Accidents per Million Vehicles Miles (ACCIMVM) Average Daily Traffic (ADT) Recommended Speed Limit (mph) Justification and Recommendation 126 18th Street Newell Street to Euclid Avenue 35 MPH 32 MPH 23 32 0.324 6,378 30 MPH Round to nearest 5 mph increment of the 85th speed. 127 18th Street Euclid Avenue to Granger Avenue 35 MPH 34 MPH 25 - 34 0.866 7,665 _percentile 30 MPH _ Round 85th percentile speed dcwn; no other reduction taken. 128 18th Street Granger Avenue to Rachael Avenue 35 MPH 36 MPH 27 - 36 0.876 4,994 30 MPH Pedestrian safety / proximity to school. 129 19th Street Tidelands Avenue to Cleveland Avenue 30 MPH 34 MPH 23 - 32 0.000 3,685 30 MPH Round 85th percentile speed down; no other reduction taken. 130 22nd Street Wilson Avenue to National City Boulevard 30 MPH 29 MPH 18 - 27 0.970 1,812 25 MPH Round 85th percentile speed down; no other reduction taken. 131 Bay Marina Drive Tidelands Avenue to Marina Way 30 MPH • 35 MPH 26 - 35 0.399 5,599 30 MPH Consistency with adjacent segment. 132 Bay Marina Drive Marina Way to 1-5 30 MPH 34 MPH 23 - 32 0.000 8,526 30 MPH Round 85th percentile speed down; no other reduction taken. 133 Mile of Cars Way to Hoover Avenue 35 35 MPH 32 MPH 23 - 32 0.105 24,951 30 MPH Round to nearest 5 mph increment of the 85th percentile speed. 134 Mile of Cars Way Hoover Avenue to National City Boulevard 35 MPH 35 MPH 27 - 36 0.167 17,393 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 135 24th Street National City Boulevard to D Avenue 35 MPH 40 MPH 31 - 40 0.412 10,510 35 MPH , Consistency with adjacent segment. 136 24th Street D Avenue to Highland Avenue 35 MPH 35 MPH 27 - 36 0.422 10,335 30 MPH Pedestrian safety / proximity to school. 137 24th Street Highland Avenue to L Avenue 35 MPH 34 MPH 25 - 34 0.620 3,530 30 MPH Round 85th percentile speed down; no other reduction taken. 138 30th Street Hoover Avenue to National City Boulevard 35 MPH 33 MPH 24 - 33 0.000 3,575 30 MPH Round 85th percentile speed down; no other reduction taken. 139 30th Street National City Boulevard to D Avenue 35 MPH 37 MPH 29 - 38 0.000 6,318 30 MPH Bike facility / bike safety. 140 30th Street D Avenue to Highland Avenue 30 MPH 37 MPH 25 - 34 1.083 10,061 30 MPH Pedestrian safety / proximity to school. 141 30th Street Highland Avenue to L Avenue 35 MPFI 39 MPH 28 - 37 0.983 20,092 35 MPH Round 85th percentile speed down; no other reduction taken. 142 30th Street L Avenue to 2nd Avenue 40 MPH 40 MPH 25 - 34 0.569 22,808r 35 MPH Consistency with adjacent segment. 143 Sweetwater Road 2nd Avenue to I- 805/Euclid Avenue 35 MPH 38 MPH 30 - 39 0.843 22,341 35 MPH Round 85th percentile speed down; no other reduction taken. City of National City 2016/2017 Citywide Engineering and Traffic Survey October 2017 193 of 297 Table 3: Speed Survey Summary and Recommendations (Page 8 of 8) Location Number Location Name Limits Existing Speed Limit (mph) 85th Percentole Speed (mph) 10 mph Pace Acciaents per Million Vehicles Miles (ACC/MVM) Average Daily Traffic (ADT) Recommended Speed Limit (mph) Justification and Recommendation 144 Sweetwater Road I-805/Euclid Avenuenue to to Valley Road 40 MPH 46 MPH 36 - 45 0.451 25,973 45 MPH Round to nearest 5 mph increment of the 85th percentile speed. 145 Sweetwater Road Valley Road to Plaza Bonita Road 45 MPH 46 MPH 37 - 46 0.253 17,907 45 MPH Round to nearest 5 mph increment of the 85th pecentiie speed. 146 Sweetwater Road Plaza Bonita Road to Calmoor Street 45 MPH 48 MPH 40 - 49 0,335 16,004 45 MPH Round 85th percentile speed dcwn; no other reduction taken. 147 Sweetwater Road Calmoor Street to Plaza Bonita Center Way 45 MPH 46 MPH 37 - 46 0.207 16,568 45 MPH Round to nearest 5 mph increment of the 85th percentile speed. 148 32nd Street Tidelands Avenue to Marina Way 25 MPI-1 30 MPH 20 - 29 0.000 574 25 MPH Consistency with adjacent segment. 149 Valley Road Sweetwater Road to Calle Abajo 40 MPH 48 MPH 37 - 46 0.186 8,883 45 MPH Round 85th percentile speed down; no other reduction taken. 150 Valley Road Plaza Bonita Center Way to San Miguel Court 35 MPH 45 MPH 35 - 44 0.625 2,548 40 MPH Bike facility / bike safety. 151 Manchester Road Plaza Boulevard 25 MPH 27 MPH 19 - 28 0.000 1,461 25 MPH Round to nearest 5 mph increment of the 85th percentile speed. City of National City 2016/2017 Citywide Engineering and Traffic Survey October 2017 194 of 297 ORDINANCE NO. 2017 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING THE NATIONAL CITY MUNICIPAL CODE BY AMENDING TITLE 11, SECTION 11.16.010 — SPEED ZONES DESIGNATED, ESTABLISHING SPEED LIMITS ON VARIOUS ROADWAYS BASED ON CERTIFIED ENGINEERING AND TRAFFIC SURVEYS WHEREAS, Section 22357 of the State of California Vehicle Code (CVC) permits local authorities, by ordinance, to establish speed limits greater than the prima facie speed limit of 25 miles per hour (MPH) when, on the basis of an engineering and traffic survey, the local authority determines that a speed greater than 25 MPH would facilitate the orderly movement of vehicular traffic and would be reasonable and safe; and WHEREAS, Section 40802 of the CVC provides the requirements for use of radar, laser or other electronic devices to measure and enforce vehicle speeds; and WHEREAS, Section 627 of the CVC and Section 2B.13 of the California Department of Transportation Manual on Uniform Traffic Control Devices (MUTCD) outline the criteria to be considered as part of conducting an engineering and traffic survey; and WHEREAS, the City authorized engineering and traffic surveys to be conducted and certified by a professional engineer in accordance with Section 627 of the CVC and Section 2B.13 of the MUTCD, and so desires to establish speed limits greater than 25 MPH. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of National City, California, that Section 11.16.010 (Speed Zones Designated) of the National City Municipal Code is hereby amended to read as follows: 11.16.010 Speed Zones Designated. A. Pursuant to Sections 22357 and 40802 of the CVC, the City Council of the City of National City, on the basis of engineering and traffic surveys conducted and certified by a professional engineer in accordance with Section 627 of the CVC and Section 2B.13 of the MUTCD, does hereby establish the following speed limits as reasonable and safe to facilitate the orderly movement of vehicular traffic on the portions of roadways within the City of National City summarized in subsections "B" through "F" below. B. Twenty-five miles per hour is declared and established as the prima facie speed limit on the following streets: 1. 16th Street from Wilson Avenue to National City Boulevard 2. 18th Street from Wilson Avenue to National City Boulevard 3. 22nd Street from Wilson Avenue to National City Boulevard 4. 32nd Street from Tidelands Avenue to Marina Way 5. 8th Street from National City Boulevard to "D" Avenue 6. 8th Street from "D" Avenue to Highland Avenue 7. "D" Avenue from Division Street to 4th Street 8. "D" Avenue from 4th Street to 8th Street 9. "D" Avenue from 8th Street to Plaza Boulevard 195 of 297 10. "D" Avenue from Plaza Boulevard to 16th Street 11. "D" Avenue from 16th Street to 18th Street 12. Grove Street from Prospect Street to Sweetwater Road 13. Hoover Avenue from 22nd Street to Mile of Cars Way 14. "L" Avenue from 16th Street to 18th Street 15. "L" Avenue from 24th Street to 28th Street 16. "L" Avenue from 28th Street to 30th Street 17. Manchester Road from Plaza Boulevard to Angelo Drive 18. Marina Way from Bay Marina Drive to 32nd Street 19. McKinley Avenue from 14th Street to 19th Street 20. Palm Avenue from 16th Street to 18th Street 21. Palm Avenue from 18th Street to 22nd Street 22. Plaza Boulevard from Coolidge Avenue to Hoover Avenue 23. Plaza Boulevard from Hoover Avenue to National City Boulevard C. Thirty miles per hour is declared and established as the prima facie speed limit on the following streets: 1. 16th Street from National City Boulevard to "D" Avenue 2. 16th Street from Highland Avenue to "L" Avenue 3. 16th Street from "L" Avenue to Palm Avenue 4. 16th Street from Palm Avenue to Grove Street 5. 16th Street from Grove Street to Euclid Avenue 6. 16th Street from Euclid Avenue to Lanoitan Avenue 7. 16th Street from Lanoitan Avenue to Harbison Avenue 8. 18th Street from National City Boulevard to "D" Avenue 9. 18th Street from "D" Avenue to Highland Avenue 10. 18th Street from Highland Avenue to "L" Avenue 11. 18th Street from "L" Avenue to Palm Avenue 12. 18th Street from Palm Avenue to Newell Street 13. 18th Street from Newell Street to Euclid Avenue 14. 18th Street from Euclid Avenue to Granger Avenue 15. 18th Street from Granger Avenue to Rachael Avenue 16. 19th Street from Tidelands Avenue to Cleveland Avenue 17. 24th Street from "D" Avenue to Highland Avenue 18. 24th Street from Highland Avenue to "L" Avenue December , 2017 2 Ordinance No. 2017 - Speed Zones Designated 196 of 297 19. 30th Street from Hoover Avenue to National City Boulevard 20. 30th Street from National City Boulevard to "D" Avenue 21. 30th Street from "D" Avenue to Highland Avenue 22. 4th Street from National City Boulevard to D Avenue 23. 4th Street from "D" Avenue to Highland Avenue 24. 4th Street from Highland Avenue to Palm Avenue 25. 4th Street from Euclid Avenue to Clairmont Avenue 26. 4th Street from Clairmont Avenue to Harbison Avenue 27. 8th Street from Harbor Drive to 1-5 28. 8th Street from 1-5 to National City Boulevard 29. Bay Marina Drive from Tidelands Avenue to Marina Way 30. Bay Marina Drive from Marina Way to 1-5 31. Civic Center Drive from Harbor Drive to National City Boulevard 32. Division Street from National City Boulevard to D Avenue 33. Division Street from "D" Avenue to Highland Avenue 34. Harbison Avenue from 4th Street to 8th Street 35. Harbison Avenue from 8th Street to Plaza Boulevard 36. Harbison Avenue from Plaza Boulevard to 16th Street 37. Highland Avenue from North City Limit to Division Street 38. Highland Avenue from Division Street to 4th Street 39. Highland Avenue from 4th Street to 8th Street 40. Highland Avenue from 8th Street to Plaza Boulevard 41. Highland Avenue from 24th Street to 30th Street 42. Highland Avenue from 30th Street to South City Limit 43. "L" Avenue from 8th Street to Plaza Boulevard 44. "L" Avenue from 18th Street to 21 st Street 45. "L" Avenue from 21 st Street to 24th Street 46. Main Street from 1-5 to National City Boulevard 47. McKinley Avenue from 19th Street to 23rd Street 48. Mile of Cars Way from 1-5 to Hoover Avenue 49. Palm Avenue from Division Street to 4th Street 50. Palm Avenue from 4th Street to 8th Street 51. Palm Avenue from 8th Street to Plaza Boulevard 52. Palm Avenue from Plaza Boulevard to 16th Street 53. Plaza Boulevard from National City Boulevard to "D" Avenue December , 2017 3 Ordinance No. 2017 - Speed Zones Designated 197 of 297 54. Plaza Boulevard from "D" Avenue to Highland Avenue 55. Roosevelt Avenue from Division Street to 4th Street 56. Roosevelt Avenue from 4th Street to 8th Street 57. Roosevelt Avenue from 8th Street to Plaza Boulevard 58. Roosevelt Avenue from Plaza Boulevard to Civic Center Drive 59. Roosevelt Avenue from Civic Center Drive to 16th Street 60. West Avenue from 16th Street to 18th Street 61. Wilson Avenue from Civic Center Drive to 18th Street 62. Wilson Avenue from 18th Street to 24th Street D. Thirty-five miles per hour is declared and established as the prima facie speed limit on the following streets: 1. 16th Street from "D" Avenue to Highland Avenue 2. 24th Street from National City Boulevard to "D" Avenue 3. 30th Street from Highland Avenue to "L" Avenue 4. 30th Street from L Avenue to 2nd Avenue 5. 4th Street from Palm Avenue to "T" Avenue 6. 4th Street from "T" Avenue to Euclid Avenue 7. 8th Street from Highland Avenue to "L" Avenue 8. 8th Street from "L" Avenue to Palm Avenue 9. 8th Street from Palm Avenue to Euclid Avenue 10. 8th Street from Euclid Avenue to Harbison Avenue 11. 8th Street from Harbison Avenue to Plaza Boulevard 12. Cleveland Avenue from Civic Center Drive to 19th Street 13. Cleveland Avenue from 19th Street to Bay Marina Drive 14. "D" Avenue from 18th Street to 24th Street 15. "D" Avenue from 24th Street to 26th Street 16. "D" Avenue from 26th Street to 30th Street 17. Division Street from Highland Avenue to Palm Avenue 18. Division Street from Palm Avenue to "T" Avenue 19. Division Street from "T" Avenue to Euclid Avenue 20. Euclid Avenue from North City Limit to Division Street 21. Euclid Avenue from Division Street to 4th Street 22. Euclid Avenue from 4th Street to 8th Street 23. Euclid Avenue from 8th Street to Plaza Boulevard 24. Euclid Avenue from Plaza Boulevard to 16th Street December , 2017 4 Ordinance No. 2017 - Speed Zones Designated 198 of 297 25. Euclid Avenue from 16th Street to 18th Street 26. Euclid Avenue from 18th Street to 24th Street 27. Harbison Avenue from Division Street to 4th Street 28. Highland Avenue from Plaza Boulevard to 16th Street 29. Highland Avenue from 16th Street to 18th Street 30. Highland Avenue from 18th Street to 24th Street 31. Hoover Avenue from Mile of Cars Way to 30th Street 32. Hoover Avenue from 30th Street to 33rd Street 33. Mile of Cars Way from Hoover Avenue to National City Boulevard 34. National City Boulevard from Division Street to 4th Street 35. National City Boulevard from 4th Street to 8th Street 36. National City Boulevard from 8th Street to Plaza Boulevard 37. National City Boulevard from Plaza Boulevard to Civic Center Drive 38. National City Boulevard from Civic Center Drive to 16th Street 39. National City Boulevard from 16th Street to 18th Street 40. National City Boulevard from 18th Street to 24th Street 41. National City Boulevard from 24th Street to 30th Street 42. National City Boulevard from 30th Street to South City Limit 43. Newell Street from 18th Street to Prospect Street 44. Palm Avenue from 1-805 to Division Street 45. Plaza Bonita Road from Sweetwater Road to Bonita Mesa Road 46. Plaza Boulevard from Highland Avenue to Palm Avenue 47. Plaza Boulevard from Palm Avenue to 1-805 48. Plaza Boulevard from 1-805 to Euclid Avenue 49. Plaza Boulevard from Euclid Avenue to Harbison Avenue 50. Sweetwater Road from 2nd Avenue to I-805/Euclid Avenue 51. Tidelands Avenue from Civic Center Drive to 19th Street 52. Tidelands Avenue from 19th Street to Bay Marina Drive 53. Tidelands Avenue from Bay Marina Drive to 32nd Street E. Forty miles per hour is declared and established as the prima facie speed limit on the following streets: 1. Division Street from Euclid Avenue to Harbison Avenue 2. Euclid Avenue from 24th Street to Sweetwater Road 3. Paradise Valley Road from 8th Street to Plaza Entrada December , 2017 5 Ordinance No. 2017 - Speed Zones Designated 199 of 297 4. Plaza Bonita Center Way from Valley Road to Sweetwater Road 5. Plaza Boulevard from Harbison Avenue to 8th Street 6. Valley Road from Plaza Bonita Center Way to San Miguel Court F. Forty-five miles per hour is declared and established as the prima facie speed limit on the following streets: 1. Harbor Drive from North City Limit to 8th Street 2. Harbor Drive from 8th Street to Civic Center Drive 3. Sweetwater Road from I-805/Euclid Avenue to Valley Road 4. Sweetwater Road from Valley Road to Plaza Bonita Road 5. Sweetwater Road from Plaza Bonita Road to Calmoor Street 6. Sweetwater Road from Calmoor Street to Plaza Bonita Center Way 7. Valley Road from Sweetwater Road to Calle Abajo BE IT FURTHER ORDAINED that this Ordinance shall have no effect on prosecutions for violations occurring prior to its effective date. BE IT FURTHER ORDAINED that this Ordinance is adopted to preserve the public health and safety, pursuant to Section 36937 of the Government Code, since this Ordinance must be in effect to permit speed limit enforcement by the National City Police Department using radar, laser, or other electronic devices. PASSED and ADOPTED this day of , 2017. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney December , 2017 6 Ordinance No. 2017 - Speed Zones Designated 200 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 201 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 Maintenance & Operating Agreement by and between the City and A Reason to Survive (ARTS), consisting of a term of 36 months with an option to extend the term fo 201 of 297 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 5, 2017 AGENDA ITEM NO ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute a Maintenance & Operating Agreement by and between the City and A Reason to Survive (ARTS), consisting of a term of 36 months with an option to extend the term for up to two additional 60 month periods for the city -owned land and building located at 200 East 12"' Street in National City. PREPARED BY: Gregory Rose DEPARTMENT Housing & Economic Property Agent Development PHONE: 619 336-4266 EXPLANATION: (Please see attached background report). L— FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: See background report for financial statement. APPROVED: Finance MIS ENVIRONMENTAL REVIEW: The Maintenance & Operating Agreement is not considered a project as defined by the California Environmental Quality Act (CEQA), and is therefore not subject to CEQA. ORDINANCE: INTRODUCTION: I FINAL ADOPTION: STAFF RECOMMENDATION: Approve the resolution. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. :Background Report 2. Maintenance & Operating Agreement' 202 of 297 Attachment No. 1 Background As part of the General Plan the City's goal is to develop a cultural arts program to encourage and facilitate the development of art in public spaces and promote greater public awareness of architectural, urban design and cultural heritage to the City. ARTS has been a catalyst in establishing an Arts, Culture and Education district in the downtown area. ARTS is dedicated to creating a movement behind the importance of the arts as a prevention and intervention vehicle to create positive transformation in children and youth facing adversity. They have become a part of the fabric of society in National City and continue to be motivated, flexible and a positive partner to work with. ARTS hopes to enter into a new Maintenance and Operating Agreement ("Agreement") with the City so they can continue to offer arts, culture and education to National City youth. First Lease Agreement with ARTS The original lease was entered into on July 1, 2012: • The term was for 36 months with an option to extend the lease for up to three (3) additional 12 month periods. • Rent was $50,000 per year in quarterly installments starting 10/1/2012. • ARTS ("Lessee") agreed to provide $30,000 in capital projects annually within the City of National City ("Lessor"), for each year of the lease. Examples of potential capital projects were capital improvements to the Arts Center building, public art throughout the community, event banners, gateway improvements, public signage, transit stop improvements, landscape, streetscape, and park improvements. Capital project values were calculated based on the direct out of pocket cost expended by Lessee on the project. Proposed projects were approved by the Lessor with an annual estimated budget that was verified annually within an annual report provided by the Lessee. • The Lessee provided quarterly reports to the City denoting National City participant numbers, total participant numbers, events coordinated, capital projects completed, community service hours completed in coordination with local schools, and any other pertinent statistics. Second Lease Agreement with ARTS In June of 2015 the City entered into a five year lease with ARTS, with an option to extend the lease for two additional 60 month periods. This lease included but was not limited to the following: • Rent was $50,000 per year and $75,000 per year in capital projects. • Expansion of the premises to include the basement and the south parking lot. The basement would be used for storage. The south parking lot would be used for storage and as a work area or extension of their prop shop. • ARTS agreed to increase the amount in capital projects provided annually within the City from $30,000 to $75,000 for each year of the lease. 203 of 297 Attachment No. 1 • The City stated a willingness to undertake improvements so that all building/safety codes would be met in the basement and on the west side of the building. This includes installing electric power and life safety systems. • The City stated a willingness to improve the floors in the visual arts and music rooms to provide ADA compliance. However, the City's ability to undertake such improvements was dependent on the annually approved budget as well as the annually approved capital improvement program. • The City agreed to donate one or more City vehicles deemed as surplus to support ARTS public art and education programs. ARTS was responsible for all expenses to operate the vehicles. • ARTS agreed that upon completion of public art projects, the physical work of art would be transferred to the City and ARTS waived and released all rights of ownership to the work of art. Proposed Maintenance and Operating Agreement The City was approached by ARTS in June of 2017 to amend their lease to allow for more flexibility to fundraise and to further activate the building. The interim City Attorney suggested we enter into a Maintenance and Operating Agreement in lieu of a lease as it was more applicable for this relationship. A Maintenance and Operating Agreement makes the relationship more of a partnership, with ARTS assuming more responsibility for the day-to-day maintenance of the building. The new agreement will: • Make ARTS responsible for minor maintenance and repairs up to $3,000. The City will handle repairs over $3,000. • ARTS will be able to serve alcohol at ARTS hosted event. • ARTS will be able to rent the building out to third parties for events. • ARTS will provide capital improvements to the Arts Center building, projects and programing of at least $125,000 annually. • ARTS will pay the City $112,500 in unpaid rent in one lump sum, or provide Projects & programs to the CITY whose collective cost of completion equals the unpaid rent. Financial Statement for Propose Maintenance and Operating Agreement ARTS will be obligated to provide capital improvements to the Arts Center building, and projects & programing of at least $125,000 annually in lieu of a cash payment. The $125,000 per year toward projects and programs has to be completed on an annual basis. ARTS shall report progress, staff time and resources toward their goals on a quarterly basis. If ARTS is unable to prove progress towards their new annual commitment, the City reserves the right to cancel the Agreement after the initial 6 months of the Agreement. Repayment of the existing $112,500 debt will be tracked separately from the new annual requirement of $125,000. ARTS shall have until the end of the initial term to repay the existing debt or the Agreement's options will not be exercised. The CITY will pay for $20,000 worth of electricity and reasonable water usage at the Premises. ARTS shall pay for all costs of electricity that exceeds that sum. 204 of 297 Attachment No. 2 MAINTENANCE AND OPERATING AGREEMENT by and between CITY OF NATIONAL CITY and A REASON TO SURVIVE Dated as of December, 2015 205 of 297 Attachment No. 2 SECTION HEADING Recitals ARTICLE 1 ARTICLE 2 ARTICLE 3 ARTICLE 4 ARTICLE 5 ARTICLE 6 ARTICLE 7 ARTICLE 8 ARTICLE 9 ARTICLE 10 ARTICLE 11 ARTICLE 12 ARTICLE 13 ARTICLE 14 ARTICLE 15 ARTICLE 16 ARTICLE 17 ARTICLE 18 ARTICLE 19 ARTICLE 20 ARTICLE 21 TABLE OF CONTENTS Terms of Agreement The Property Permitted Uses Utilities Repairs and Maintenance Improvements; Alterations Mechanics' Liens; Stop Notices Taxes Indemnifications and Insurance Termination Hazardous Materials Assignment; Third Party Use of Property Defaults by Arts or by City; Remedies Abandonment Damage or Destruction Eminent Domain Sale or Mortgage by City City's Right of Access Notices Non -Discrimination Records, Accounts, and Audits AR1TICLE 22 Administrative Provisions PAGE 2 2 3 5 6 6 7 8 8 11 12 14 14 15 15 16 16 16 17 18 18 18 206 of 297 Attachment No. 2 MAINTENANCE AND OPERATING AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND A REASON TO SURVIVE This Maintenance and Operating Agreement (the "Agreement") is entered into as of December 5, 2015, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and A REASON TO SURVIVE ("ARTS"), a California non-profit corporation. RECITALS A. WHEREAS, the CITY owns the improved real property commonly known as 200 East 12th Street, National City, California (the "Property"). The improvements on the Property are sometimes referred to as the "Arts Center" building. A description of the Property is attached hereto as Exhibit "A" and Exhibit `B", incorporated herein by reference. B. WHEREAS Article 11, Section 7 of the California Constitution empowers the City to provide for the health and welfare of its residents. C. WHEREAS, the CITY desires to enter into a Maintenance and Operating Agreement due to the special services to be performed under this Agreement for the City and to facilitate a more collaborative relationship between the CITY and the operator of the Premises. D. WHEREAS, one of the goals of the CITY's General Plan is to develop a cultural arts program that encourages and facilitates the development of art in public spaces and promotes greater public awareness of architectural, urban design, and cultural heritage of the CITY. E. WHEREAS, the CITY desires the services of an organization to maintain and operate the Property in a manner beneficial to the public. F. WHEREAS, ARTS has been a catalyst in delivering arts, culture and education programs and projects in National City, and has created a movement behind the importance of the arts as a prevention and intervention vehicle to create positive transformation in children and youth facing adversity. G. WHEREAS, the CITY has further determined that ARTS is skilled in creating Public Art (defined below), including capital art projects, which beautifies the community, and is capable of lifting the spirits of residents and visitors to National City. H. WHEREAS, the CITY wishes to have ARTS maintain and operate the Property as an arts center for the community's benefit, and ARTS is willing to operate and maintain the Property for such a purpose. Maintenance and Operating Agreement Page 1 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 207 of 297 Attachment No. 2 I. WHEREAS, the benefits of ARTS' continued work in National City, as explained in these Recitals, justifies ARTS' options to pay the Unpaid Rent (defined below) as provided in this Agreement. 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 Agreement shall be thirty-six (36) months, commencing January 1, 2018 (the "Commencement Date") and expiring on December 31, 2021. 1.2 Option to Extend Term. If ARTS is not in default of any provision of this Agreement upon the expiration of the term described in Article 1.1, the City Manager or designee may extend the term for up to two (2) additional sixty (60) month periods. The initial thirty-six month term, and any extension pursuant to this Article 1.2, shall collectively be referred to hereafter as the "Term." ARTICLE 2 THE PROPERTY 2.1 License for Use of Property. For the purpose of operating the public arts center for the benefit of the residents and visitors of National City, the CITY grants ARTS a revocable license to enter and operate the Property, subject to the covenants and conditions hereinafter set forth, as of the Commencement Date. 2.1.1 Parking. ARTS shall neither have reserved parking nor exclusive on -site parking spaces. The CITY will maintain control of the public parking lot adjacent to the ARTS building. 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 Property shall be as follows: 2.2.1 Ownership of Personal Property. All improvements existing on the Property (Improvements), together with all fixtures permanently attached to the Property (Fixtures), as of the Commencement Date shall remain the property of the CITY during the Term. ARTS shall not remove any Improvements or Fixtures from the Property and shall also not waste, destroy, or modify any Improvements or Fixtures on the Property, except as permitted by this Agreement. 2.2.2 Ownership of Improvements and Equipment. All improvements made to the property by ARTS shall become the property of the CITY. Maintenance and Operating Agreement Page 2 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 208 of 297 Attachment No. 2 ARTICLE 3 PERMITTED USE 3.1 Purpose. It is the intention of the parties that operation of the Property by ARTS will encourage and foster arts education programming, creative youth development, project - based learning, and support services for the students and families at the ARTS Center Building, as well as the creation of public art projects in the community. 3.2 Projects and Programs. In exchange for its use of the Property, ARTS shall provide capital projects and programming services ("Projects") within National City's jurisdictional boundaries during the Term. Such Projects shall serve as consideration for the use of the Property and shall include: (a) capital improvements to the ARTS Center building; (b) the performance of works of authorship as described in Civil Code Articles 980-989 and in Articles 106A and Section113(d) of Title 17 of the United States Code (hereafter "Public Art"), throughout the community utilizing various media; (c) community event banners; (d) public gateway improvements, that may include aspects of Public Art; and (e) landscape, streetscape, and park improvements. The obligations described in this Article 3.2 are in addition to all other Property maintenance obligations more specifically described herein. 3.2.1. Value of Projects and Programs. The annual value of the Projects and Programs shall total at least one hundred twenty-five thousand dollars ($125,000.00). Of this $125,000, ARTS must obtain at least $25,000 for the Projects through fundraising. 3.2.2. Method of Determining Value of Projects and Programs. The value of all Projects shall be determined according to (a) the dollar value of each Project, as represented by a separate written agreement approved by the City Manager, or designee, or (b) copies of invoices, receipts, or bills demonstrating the dollar value of materials purchased for a Project. ARTS must promptly make all invoices, receipts, or bills demonstrating the dollar value of materials purchased for a Project available to the City Manager, or designee, upon written request. 3.2.2. Pre -Existing Balance. ARTS expressly acknowledges that, before the Term of this Agreement commenced, ARTS owed the CITY $112,500 in unpaid rent under the July 1, 2015 Lease Agreement ("Unpaid Rent"). The Unpaid Rent represents monthly rent accrued between October 1, 2015 and December 31, 2017. ARTS must either: pay the Unpaid Rent in one lump sum, or provide Projects to the CITY whose collective cost of completion equals the Unpaid Rent. No fundraising minimums will apply to ARTS' payment of the Unpaid Rent. If ARTS chooses to pay the Unpaid Rent pursuant to Article 3.2.2., ARTS must separately track and invoice the value of those Projects that will apply to pay off the $112,500 from other Projects intended to satisfy Article 3.2.1. Maintenance and Operating Agreement Page 3 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 209 of 297 Attachment No. 2 3.2.3 Waiver of Artistic Rights. Consistent with Article 9.2, ARTS expressly waives and disclaims any residual rights in the Projects granted to ARTS by state or federal law, including Civil Code Articles 980 through 989 relating to intellectual property and artistic works, and 17 United States Code Section106A and Section113(d) relating to artists rights. 3.3 Hours of Operation. ARTS will open the Property to the public Monday through Friday from 9:00 a.m. to 5:00 p.m. 3.4 Service Fees. ARTS shall not provide any programs and services for profit. However, ARTS may charge user fees for classes and programs offered to school groups and the community to offset costs incurred by ARTS in its maintenance and operation of the Property. Any fees charged under this Article 3.4 must be approved by the City Manager or designee. There will be no fee for the public to gain access to the Property during those hours of operation listed in this Article 3. 3.5 Reporting by ARTS. ARTS shall provide quarterly reports to the City Manager, or designee, that provide Statistical Information (defined below) for the immediately preceding quarter. Each quarterly report shall contain, at a minimum, the total number of: (a) National City residents who participated in ARTS' Projects; (b) participants and volunteers who participated in ARTS' Projects; (c) events and programs coordinated; (d) and capital projects completed. The quarterly reports shall also include reports on ARTS' operating and maintenance plans, long-term and short-term goals, and any other pertinent statistics. The information required to appear in the quarterly reports by this Article 3.5 will be referred to as "Statistical Information." Each quarterly report will include all previous quarters' Statistical Information, if any. ARTS will deliver the quarterly report to the CITY at a mutually agreeable date and time. 3.6 Annual Budget. ARTS shall provide the CITY Manager, or designee, with a courtesy copy of the proposed budget for ARTS' estimated maintenance and operating expenses for the Property by July 1st of each year during the Term. ARTS shall provide to the City Manager, or designee, an audited financial report and tax return, forty-five (45) days following June 30 of each year during the Term. 3.7 Volunteer Management. ARTS may utilize volunteers to operate the Property, and in providing the Projects required by this Agreement. ARTS is responsible for recruiting, training, and managing all volunteers on the Property. Volunteers are considered the responsibility of ARTS for the purpose of workers compensation or general liability. 3.8 Alcohol Use. ARTS, or third parties with permission from ARTS, may, hold events on the Property where alcoholic beverages are served. Alcoholic beverages shall be served subject to the following requirements: • Alcohol will not be served during youth programming under any circumstances. • Alcohol will be served in limited areas of the Property, designated by ARTS in advance, and approved by the City Manager or designee. Maintenance and Operating Agreement , 2018 Page 4 of 20 City of National City and A Reason to Survive (ARTS) 210 of 297 Attachment No. 2 • Alcoholic beverages must be served by a licensed bartender, with a copy of the bartender's license on the Property. • The event host must obtain approval from the state Department of Alcoholic Beverage Control to serve alcohol. • The event host is responsible for all guest behavior during and following the service of alcohol. • "Last call" for service of alcohol shall be at least thirty (30) minutes prior to the scheduled end of the event. When third parties (with permission from ARTS) serve alcoholic beverages, the following additional requirements shall apply: • The third party shall provide the CITY proof of liability insurance acceptable to the City's Risk Manager. • The third party shall provide two licensed security guard for every 100 guests registered to attend the event. • ARTS shall reserve the authority to immediately terminate an event if ARTS determines, in its sole discretion, the third party has not complied with any requirement of this Article 3.8. • ARTS shall provide the CITY a copy of their third party rental agreement template for approval. 3.9 Consideration. ARTS payment of $1.00 to the CITY, in addition to ARTS' provision of "Projects" under Article 3.2 and the mutual benefit to be derived from ARTS' performance under the remainder of this Agreement, shall serve as the sole consideration due the CITY for ARTS' license to use and operate the Premises. 3.10 Compliance with Laws. ARTS, at its sole expense, shall procure, maintain, and hold available for the CITY's inspection any governmental license or permit required for the proper and lawful conduct of ARTS' operation of the Property. ARTS shall not use the Property 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. ARTS shall, at its sole expense, comply with all applicable statutes, laws, ordinances, rules, regulations, orders, covenants and restrictions of record, and requirements in effect during the Term (Laws or Orders), regulating the use by ARTS of the Property. ARTICLE 4 UTILITIES 4.1 Utility Services. The CITY shall be responsible for maintaining reasonable utility services to the Property. The CITY shall pay for Twenty Thousand and no/100 Dollars ($20,000) worth of electricity and reasonable water usage at the Premises. ARTS shall pay for all costs of electricity that exceeds the sum listed in this Section 4.1. If the CITY Maintenance and Operating Agreement , 2018 Page 5 of 20 City of National City and A Reason to Survive (ARTS) 211 of 297 Attachment No. 2 determines, in its sole discretion, that ARTS is negligent in its use of the utilities, including water usage, the CITY may hold a good faith meet and confer meeting with ARTS to discuss its utilities usage. ARTICLE 5 REPAIRS AND MAINTENANCE 5.1 ARTS' Repair and Maintenance Obligations. ARTS acknowledges that it has made a thorough inspection of the Property and that it accepts the Property "as -is" as of the Commencement Date. At ARTS' own cost and expense, ARTS shall repair, replace, and maintain the Property in good, tenable condition as necessary. ARTS shall not be obligated to repair or replace damage to the Property caused by ordinary wear and tear. ARTS shall maintain the Property in an accessible manner for use by individuals with disabilities and comply with federal and state law regarding accessibility, including but not limited to the Americans with Disabilities Act and California's Disabled Persons Act. Other than repair work in emergency situations not exceeding Three Thousand and no/100 Dollars ($3,000), ARTS shall not perform any repair work without the CITY's prior written consent. As used in this Article 5.1, "emergency" means a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services. All emergency repairs performed by the City on the Property are governed by Public Contract Code Section 22050. ARTS' obligations under this Article shall apply regardless of whether the repairs, restorations, and replacements are ordinary or extraordinary, foreseeable or unforeseeable, capital or noncapital, the fault or not the fault of ARTS, its agents, employees, volunteers, invitees, visitors, or contractors. All replacements made by the ARTS shall be of like size, kind, and quality to the items replaced. 5.2 CITY Repair and Maintenance Obligations. For any repair and maintenance work exceeding Three Thousand and no/100 Dollars ($3,000), the CITY will consider the nature and priority of the work and available funding to determine if and when such repairs will be completed. 5.3 CITY Right to Inspect; CITY Not Obligated to Repair or Maintain. ARTS shall permit the CITY to enter the Property at all times during usual hours of operation to inspect the Property. Any entry pursuant to this Article 5.3 shall not unreasonably interfere with ARTS' operation of the Property. However, nothing contained in this Article 5 shall create any duty on the part of the CITY to do any work which, under any provision of this Agreement, ARTS may be required to do. ARTICLE 6 IMPROVEMENTS; ALTERATIONS 6.1 Alterations. ARTS may alter, replace, add to, change, or construct additional improvements to the Property (collectively, "Alterations") as ARTS may find necessary or convenient for its operation of the Property. Any Alterations performed by ARTS Maintenance and Operating Agreement Page 6 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 212 of 297 Attachment No. 2 under this Article 6.1 shall be performed: (a) at ARTS' sole cost and expense; (b) with the CITY's prior written consent; and (c) in accordance with construction plans submitted to and approved by the CITY. 6.2 Construction Permits and Licenses. At all times during the Term, ARTS shall procure, at its sole cost and expense, all permits and licenses that are necessary or required from any local governmental agency for the proposed construction of any Alterations. The CITY may, in its sole discretion, waive CITY permitting fees where applicable. 6.3 Proposed Plans. In its sole discretion, the CITY may require ARTS to do any of the following: • Submit a complete set of proposed plans of any Alterations to the CITY; • Apply for and receive a permit from the Building Department to complete any Alterations; • Within sixty (60) days of a written request, furnish the CITY with a complete set of "as -built" plans for any CITY -approved Alterations. 6.4 Prevailing Wages. ARTS shall comply with prevailing wage statutes for any work not performed by volunteers. ARTICLE 7 MECHANICS' LIENS; STOP NOTICES 7.1 Mechanics' Liens; Stop Notices. ARTS shall pay, or cause to be paid, the total cost and expense of all works of improvement, as that phrase is defined in the Mechanics Lien Law in effect at time and place of construction, done by it, or caused to be done by it, on the Property, and for all materials furnished for or in connection with any such work. If any lien or stop notice is filed against the Property, ARTS shall cause the lien or stop notice to be discharged of record within one hundred eighty (180) days after it is filed. ARTS shall indemnify, defend, and hold the CITY harmless from any and all liability, loss, damage, costs, attorneys' fees, and all other expenses on account of claims of lien of laborers, materialmen, or others for work performed, or materials or supplies furnished for ARTS or persons claiming under ARTS. 7.2 Notice of Lien or Stop Notice. Should any claim of lien or stop notice related to ARTS' work of improvement of the Property be filed against the Property, or any action be filed against the Property, or any action affecting the title to the Property be commenced, the party receiving notice of such lien or stop notice or action shall immediately give the other party written notice thereof. 7.3 Notice of Non -Responsibility. The CITY or its representatives shall have the right to post and keep posted on the Property notices of non -responsibility or such other notices which the CITY may deem to be proper for the protection of the CITY's interest in the Maintenance and Operating Agreement Page 7 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 213 of 297 Attachment No. 2 Property. ARTS shall, before the commencement of any work which might result in any such lien or stop notice, give to the CITY written notice of its intention to do so with sufficient time to enable posting of such notices. ARTICLE 8 TAXES 8.1 Definition. "Taxes" shall mean all taxes, governmental bonds, special assessments, charges, or transfer taxes, license and transaction fees, including, but not limited to, (a) any state, local, federal income tax, or any real or personal property tax, (b) increases in taxes attributable to ARTS' operation of the Property, or (c) any taxes which are essentially payments to a governmental agency, other than the CITY, for the right to make improvements to the Property. 8.2 Possessory Interest. Notwithstanding Article 2.1, ARTS acknowledges that this Agreement may create a possessory interest subject to property taxation and that ARTS may be subject to the payment of taxes levied on such interest. ARTS shall pay, before delinquency, all taxes, assessments, and fees assessed or levied upon the Property. 8.3 Responsibility for Payment of Taxes. The CITY shall not be obligated to pay any Taxes accruing against any interest in ARTS' use of the Property at any time before or during the Term. ARTS shall pay any Taxes that accrue against any interest in ARTS' use of the Property. Additionally, ARTS shall pay any Taxes levied upon any Improvements, Fixtures, or Personal Property located on the Property to the extent such Taxes result from ARTS' operations or other activities held upon, or in connection with, the Property. ARTICLE 9 INDEMNIFICATION AND INSURANCE 9.1 ARTS Indemnity. The CITY shall not be liable for, and ARTS shall defend, indemnify, and hold harmless the CITY, its officers, officials, agents, employees, and volunteers from any and all claims, costs, 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 resulting from, related to, or arising out of ARTS' improvement, operation or use of the Property, or arising either directly or indirectly from any act, error, omission, or negligence of ARTS or its contractors, licensees, invitees, members, agents, servants or employees; 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, officials, employees, or volunteers. CITY will cooperate reasonably in the defense of any action, and ARTS shall employ competent counsel, reasonably acceptable to the CITY'S City Attorney. The indemnity, defense, and hold harmless obligations contained herein shall survive the termination of this Agreement for any alleged or actual omission, act, or negligence under this Agreement that occurred during the term of this Agreement. Maintenance and Operating Agreement Page 8 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 214 of 297 Attachment No. 2 9.1.1 Third Party Indemnity. ARTS shall not invite third party organizations onto the Property until said third party organization furnishes CITY a written agreement in which it indemnifies and holds CITY harmless, upon terms satisfactory to CITY. 9.1.2 Waivers from Third Parties. ARTS agrees to obtain from all guests, invitees, or third party organizations whose participants visit the Property, a waiver of liability and hold harmless agreement upon terms satisfactory to the CITY. 9.2 Ownership Rights and Licenses to Artwork; Waiver. Through its provision of Projects to the CITY, ARTS makes an unconditional donation, in perpetuity, of all Public Art to the CITY. ARTS acknowledges that the CITY is authorized to accept donations of Public Art pursuant to Sections 37354 and 37355 of the Government Code. Before beginning each Project that contains Public Art, ARTS and all individuals participating in the Project must sign a CITY -approved waiver that expressly waives and disclaims any and all rights they each may have under the California Art Preservation Act, as set forth in Civil Code Section 980-989, and any rights under the Visual Artists Rights Act, as set forth at 17 U.S.C. Section106A and Section 113(d) to any Public Art created pursuant to this Agreement. ARTS, and all participants who create Public Art, shall not attempt to defeat Sections 3.2.3 and 9.2 by cooperating with any organization which seeks to bring an action under Civil Code Article 989 or any other applicable provision of law. 9.2.1. Ownership of Materials. Ownership of all materials and concepts produced for the CITY under this Agreement, including but not limited to completed Projects, and all rights to licensing and reproductions of Public Art, shall pass to and become the property of the CITY once the CITY accepts the completed Project. The CITY, at its option, will store all drawings and materials that may assist with future repairs. 9.2.2. Assignment of Rights. ARTS hereby assigns to the CITY all rights to produce, give, sell, and distribute still or motion images and models or other likeness of any kind of Public Art but shall exercise no rights thereto inconsistent with any provision of this Article 9.2. Any Memoranda, Reports, Maps, Drawings, Renderings, Photos, Plans, Specifications, and other documents prepared by ARTS for any Projects, whether paper or electronic, shall become the property of the CITY for use with respect to the specific Project provided to the CITY, and shall be turned over to the CITY upon completion of the Project, or any phase thereof, as contemplated by this Agreement. 9.2.3. Survival. The provisions of this Article 9.2 shall survive the termination of this Agreement. 9.3 Insurance. ARTS, at its sole cost and expense, shall purchase and maintain, and shall require its subcontractors, and third party organizations ARTS invites onto the Property, to purchase and maintain throughout the term of this Agreement, the following insurance policies: Maintenance and Operating Agreement Page 9 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 215 of 297 Attachment No. 2 9.3.1 Commercial General Liability Insurance (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal and advertising injury with minimum limits of $2,000,000 per occurrence and $4,000,000 aggregate, covering all bodily injury and property damage arising out of its operations under this Agreement. The policy shall name the CITY and its officers, agents, employees, and volunteers as additional insureds, and a separate additional insured endorsement shall be provided. The general aggregate limit must apply solely to this "project" or "location." The Commercial General Liability required by this Section must include Sexual Misconduct Liability coverage. 9.3.2 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, employees, and volunteers as additional insureds, and a separate additional insured endorsement shall be provided. 9.3.3 Workers' Compensation Insurance in an amount sufficient to meet statutory requirements covering all of ARTS' employees, and employers' liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the City. Said endorsement shall be provided prior to commencement of work under this Agreement. 9.3.4 Property insurance against all risks of loss to any improvements or betterments made by ARTS, or any third party with permission from ARTS, at full replacement cost with no coinsurance penalty provision. 9.3.5 The aforesaid policies shall constitute primary insurance, at least as broad as ISO CG 20 01 04 13, 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's Risk Manager, at the address listed in Article 9.3.7 below, of cancellation or material change. 9.3.6 If required insurance coverage is provided on a "claims made" rather than "occurrence" form, ARTS shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date must be on or before the date of this Agreement. 9.3.7 The Certificate Holder for all policies of insurance required by this Article 9.3 shall be: Maintenance and Operating Agreement Page 10 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 216 of 297 Attachment No. 2 City of National City c/o Risk Manager 1243 National City Boulevard National City, CA 91950-4397 9.3.8 Insurance shall be written with only insurers authorized to conduct business in California that hold a current policy holder's alphabetic and financial size category rating of not less than A VIII according to the current Best's Key Rating Guide, or a company of equal financial stability that is approved by the CITY'S Risk Manager. In the event coverage is provided by non -admitted "surplus lines" carriers, they must be included on the most recent California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements. 9.3.9 This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY'S Risk Manager. If ARTS does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CITY may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. 9.3.10 All deductibles and self -insured retentions in excess of $10,000 must be disclosed to and approved by the CITY. CITY reserves the right to modify the insurance requirements of this Article 9.3, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. 9.3.11 If ARTS maintains broader coverage or higher limits (or both) than the minimum limits shown above, the CITY requires and shall be entitled to the broader coverage or higher limits (or both) maintained by ARTS. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY. ARTICLE 10 TERMINATION 10.1 This Agreement may be terminated with or without cause by the CITY. Termination without cause shall be effective only upon 60-day's written notice to ARTS. During said 60-day period, ARTS shall perform all services in accordance with this Agreement. This Agreement may also be terminated immediately by the CITY for cause in the event of a material breach of this Agreement, misrepresentation by ARTS in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the CITY. Termination with or without cause shall be effected by delivery of written Notice of Termination to ARTS as provided for herein. The CITY further reserves the right to immediately terminate this Agreement upon: (a) the filing of a petition in bankruptcy affecting ARTS; (b) a reorganization of ARTS for the benefit of creditors; or (c) a business reorganization, change in business name or change in business status of ARTS. Maintenance and Operating Agreement Page 11 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 217 of 297 Attachment No. 2 ARTICLE 11 HAZARDOUS MATERIALS 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") relating to hazardous substances, hazardous materials, hazardous waste, toxic substances, environmental conditions on, under, or about the Property, soil and ground water conditions, or other similar substances or conditions. The following legal authority is a non -exhaustive list of the legal authority that applies to the definition of the term "Hazardous Materials Laws": • the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C., Section 9601 et seq.) • the Hazardous Materials Transportation Act, as amended (49 U.S.C., Section 1801 et seq.), and • the Resource Conservation and Recovery Act of 1976, as amended (42 U.S.C., Section 6901 et seq.) 11.2 Hazardous Materials - Definition. As used in this Article the term "Hazardous Materials" means any chemical, compound, material, substance or other matter that: 11.2.1 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; 11.2.2 is controlled, referred to, designated in or governed by any Hazardous Materials Laws; 11.2.3 gives rise to any reporting, notice or publication requirements under any Hazardous Materials Laws, or; 11.2.4 is any other material or substance giving rise to any liability, responsibility or duty upon the CITY or the ARTS with respect to any third person under any Hazardous Materials Law. 11.3 ARTS Representations and Warranties. ARTS represents and warrants that, during the Term or any extension thereof, ARTS shall comply with the following provisions of this Article unless otherwise specifically approved in writing by the CITY, subject to the terms and conditions of the ARTS' maintenance obligations provided elsewhere in this Agreement: Maintenance and Operating Agreement Page 12 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 218 of 297 Attachment No. 2 11.3.1 ARTS shall not cause or permit any Hazardous Materials to be brought, kept or used in or about the Property by ARTS, its agents, employees, assigns, contractors or invitees, except as required by ARTS' permitted use of the Property in the normal course of operations; 11.3.2 Any handling, transportation, storage, treatment, or usage by ARTS of Hazardous Materials that is to occur on the Property following the Commencement Date shall be in compliance with all applicable Hazardous Materials Laws; 11.3.3 Any leaks, spills, release, discharge, emission or disposal of Hazardous Materials which may occur on the Property following the Commencement Date shall be promptly and thoroughly cleaned and removed from the Property by ARTS at its sole expense, and any such discharge shall be promptly reported in writing to the CITY, and to any other appropriate governmental regulatory authorities; 11.3.4 No friable asbestos shall be constructed, placed on, deposited, stored, disposed of, or located by ARTS on the Property; 11.3.5 No underground improvements, including but not limited to treatment or storage tanks, or water, gas or oil wells shall be located by ARTS on the Property without the CITY's prior written consent; 11.3.6 ARTS shall promptly supply the CITY with copies of all notices, reports, correspondence, and submissions made by ARTS 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; and 11.3.7 ARTS shall promptly notify the CITY of any liens threatened or attached against the Property pursuant to any Hazardous Materials' Law. If such a lien is filed against the Property, then, within the earlier of (i) twenty (20) days following such filing, or (ii) before any governmental authority commences proceedings to sell the Property pursuant to the lien, ARTS shall either: (a) pay the claim and remove the lien from the Property, or (b) furnish either: (1) a bond or cash deposit reasonably satisfactory to the CITY in an amount not less than the claim from which the lien arises, or; (2) other security satisfactory to the CITY in an amount not less than that which is sufficient to discharge the claim from which the lien arises. Maintenance and Operating Agreement Page 13 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 219 of 297 Attachment No. 2 11.3.8 At the end of this Agreement, ARTS shall surrender the Property to the CITY free of any and all Hazardous Materials and in compliance with all Hazardous Materials' Laws affecting the Property. ARTICLE 12 ASSIGNMENT; THIRD PARTY USE OF PROPERTY 12.1 Assignment CITY's Consent Required. ARTS 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. 12.2 Third Party Use of the Property. ARTS may engage third party organizations to provide special services or programming at the Property if: 12.2.1 The CITY consents, in writing, to the third party organizations' proposed use of the Property and; 12.2.2 The third party organization obtains policies of insurance acceptable to the City's Risk Manager and Article 9.3 of this Agreement. ARTICLE 13 DEFAULTS BY ARTS OR BY CITY; REMEDIES 13.1 Events of Default; Remedies. The following sub -articles shall apply if either ARTS or the CITY neglects, fails to perform, or fails to observe any of their respective obligations under the terms, covenants, or conditions contained in this Agreement ("Default"): 13.1.1 Thirty -Day Correction of Default. If either ARTS or the CITY determines that the other party is in Default, then the non -defaulting party must provide the defaulting party written notice of the Default and thirty (30) days to correct the Default. 13.1.2 Extended Correction of Default. If the defaulting party determines that more than thirty (30) days is required to correct the Default, the defaulting party must provide the other party written notice of the reasons why additional time is required to correct such Default. The defaulting party must use diligent efforts to correct a Default under this Article 13.1.2 and, in any case, must correct such Default within ninety (90) days from the date of the written notice of default. 13.1.3 Remedies for Failure to Correct Default. If the defaulting party fails to comply with Article 13.1.1. or 13.1.2, then the non -defaulting party may immediately terminate this Agreement. The defaulting party shall be liable to the non -defaulting party for any and all damages sustained by the non -defaulting party as a result of the defaulting parties' breach. Maintenance and Operating Agreement Page 14 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 220 of 297 Attachment No. 2 ARTICLE 14 ABANDONMENT 14.1 Abandonment. ARTS shall not vacate or abandon the Property at any time during the Term nor permit the Property to remain unoccupied for a period of longer than five (5) consecutive days during the term of this Agreement. These provisions shall not apply if the Property is closed and operation is temporarily discontinued therein on account of strikes, lockouts, acts of nature, or similar causes beyond the reasonable control of ARTS. Any exceptions must be submitted in writing to the City Manager or designee for approval. ARTICLE 15 DAMAGE OR DESTRUCTION 15.1 ARTS' Duty to Repair Casualty. ARTS shall, as expeditiously as reasonably possible, repair any damages to the Property caused by fire, earthquake, or any other identifiable event of a sudden, unexpected, or unusual nature ("Casualty"), and repair, restore, and replace any such damaged or destroyed Fixtures, Improvements or Personal Property ("Casualty Repairs"). Any Casualty Repairs made under this Article 15 are: (a) To be performed at ARTS' sole cost and expense; (b) To be performed except as otherwise provided in this Article 15; and are (c) Subject to all other terms and conditions of this Agreement. 15.2 Construction Provisions. In the event of any reconstruction of the Property, Fixtures or Improvements required of ARTS pursuant to this Article, ARTS shall repair the Property, and repair or rebuild such Fixtures and Improvements, to substantially the same condition they were in immediately preceding such Casualty. 15.3 No Abatement. In the event of reconstruction, replacement, or repair by ARTS pursuant to this Article, ARTS shall continue its operations on the Property 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. ARTS shall not be entitled to any compensation or damages from CITY for: (a) loss of use of the whole or any part of the Property; (b) ARTS' Personal Property; or (c) any inconvenience or annoyance occasioned by such damage, reconstruction, or replacement. 15.4 Major Destruction. Notwithstanding any of the foregoing provisions of this Article to the contrary, if, at any time after the Commencement Date, (a) the Improvements are damaged or destroyed to the extent of more than twenty-five percent (25%) of their replacement cost, or (b) the damage is such that the Improvements cannot be repaired and restored within one hundred and eighty (180) days after the Casualty, then ARTS shall have the right to terminate this Agreement upon thirty (30) days' prior written notice to the CITY. Maintenance and Operating Agreement Page 15 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 221 of 297 Attachment No. 2 ARTICLE 16 EMINENT DOMAIN 16.1 Condemnation. ARTS may terminate this Agreement within twenty (20) days after the date that a condemning authority (by a party other than the CITY) takes possession of the Property by delivery of written notice of such condemnation if: (a) If all of the Property is taken under eminent domain proceedings; or (b) less than all of the Property is taken under such eminent domain proceeding and the part taken substantially impairs the ability of ARTS to use the remainder of the Property for the purposes permitted by this Agreement. In the absence of such written notice from a condemning authority, ARTS may terminate this Agreement within twenty (20) days after the condemning authority shall have taken possession. 16.2 Continuation of Operating Agreement after Condemnation. If this Agreement is not terminated by ARTS, it shall remain in full force and effect as to any portion of the Property remaining, and this Agreement will end as of the date possession of the part taken by the public entity as to the part of the Property that is taken. 16.3 Award. All monies awarded in any condemnation shall belong to the CITY. The CITY shall have no liability to ARTS for any award not provided by the condemning authority. ARTICLE 17 SALE OR MORTGAGE BY CITY 17.1 Sale or Mortgage. The CITY may, pursuant to existing and subsequently enacted CITY ordinances and State laws, at any time, and without the consent of ARTS, vacate, sell, purchase, exchange, transfer, assign, lease, encumber or convey the CITY's interest in whole or in part, in the Property (collectively referred to in this Article as a "Sale"). The CITY shall provide to ARTS written notice of the CITY's intent to a Sale or discontinuance pursuant to this Article at least ninety (90) days prior to said proposed transfer. 17.2 Release on Sale. From and after a Sale or discontinuance of the CITY's entire interest in the Property, the CITY shall be released from all liability to ARTS and ARTS successors and assigns arising from this Agreement because of any act, occurrence, or omission of the CITY occurring after such Sale. ARTICLE 18 CITY'S RIGHT OF ACCESS 18.1 Right of Entry. CITY, its agents, employees, and contractors may enter the Property at any time with or without notice to ARTS to: Maintenance and Operating Agreement Page 16 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 222 of 297 Attachment No. 2 (a) respond to health and safety concerns; (b) inspect the Property and Improvements; (c) determine whether ARTS is complying with its obligations in this Agreement (including its obligations with respect to compliance with Hazardous Materials Laws) (d) post notices of non -responsibility or similar notices (e) inspect the progress of construction of any improvement; or (f) make repairs that this Agreement requires or allows 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 Property All work enumerated in this Article 18.1 must be done as promptly as reasonably possible and so as to cause as little interference to ARTS as reasonably possible. ARTICLE 19 NOTICES 19.1 Notices. Whenever in this Agreement it shall be required or permitted that notice or demand be given or served by either party to this 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 Manager City of National City 1243 National City Boulevard National City, CA 91950-4397 With a copy to: Community Services Recreation Superintendent City of National City 140 East 12th Street, Suite B National City, CA 91950 ARTS: A Reason to Survive, Inc. Executive Director 200 East 12th Street National City, CA 91950 Maintenance and Operating Agreement Page 17 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 223 of 297 Attachment No. 2 ARTICLE 20 NON-DISCRIMINATION 20.1 Non -Discrimination. ARTS hereby covenants by and for itself, its successors, assigns and all persons claiming under or through it, that this Agreement is made and accepted upon and subject to the condition that there shall be no discrimination against, or segregation of, any person or group of persons on account of race, age, color, creed, religion, sex, sexual orientation, marital status, national origin, physical handicap, medical condition or ancestry in the use, operation, or enjoyment of the Property. ARTICLE 21 RECORDS, ACCOUNTS, AND AUDITS 21.1 ARTS' Duty to Keep Records. ARTS shall, at all times during the Term, and for a period of five (5) years following expiration or earlier termination of this Agreement, keep or cause to be kept, true and complete books, records and accounts of all (a) construction undertaken pursuant to the rights conferred on ARTS under this Agreement, and (b) financial transactions in the operation of all business activities, of whatever nature, conducted pursuant to the rights granted by this Agreement. Such records shall also include the source and disposition of all trash and other waste collected and disposed of by ARTS in the operation of its business. Said records must be supported by source documents such as receipts, invoices, sales slips, cash register tapes, purchase invoices or other pertinent documents. 21.2 CITY's Right to Audit. All ARTS books, accounts, and records shall be kept and made available at one location within the limits of the County of San Diego. The CITY shall have the right at any reasonable time to examine and perform audits of ARTS' records pertaining to (a) construction undertaken pursuant to the rights conferred on ARTS under this Agreement, and (b) its operations on the Property, including, without limitation, any records pertaining to ARTS' use of utilities on the Property. The cost of said audits shall be borne by the CITY, except that ARTS shall provide to the CITY, at ARTS' expense, necessary data to enable the 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 Agreement and to ARTS' use of the Property. ARTICLE 22 ADMINISTRATIVE PROVISIONS 22.1 Authority. ARTS represents and warrants that it has full power and authority to execute and fully perform its obligations under this Agreement pursuant to its governing instruments, without the need for any further action, and that the person executing this Agreement on behalf of ARTS is the duly designated agent of ARTS and is authorized to do so. Maintenance and Operating Agreement Page 18 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 224 of 297 Attachment No. 2 22.2 Captions. The captions and headings appearing in this Operating Agreement are inserted for convenience only and in no way define, limit, construe, or describe the scope or intent of the provisions of this Agreement. 22.3 CITY Approval. Except where stated in this Agreement to the contrary, the phrases "CITY approval," and "CITY's written approval" or such similar phrases shall mean approval of the City Manager or designee, which approval shall not be unreasonably withheld. 22.4 Cumulative Remedies. In the event of a default under this Agreement, each party's remedies shall be limited to those remedies set forth in this Agreement. Any such remedies are cumulative and not exclusive of any other remedies under this Agreement to which the non -defaulting party may be entitled. 22.5 Entire Agreement. This Agreement, together with all addenda and exhibits 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. 22.6 Exhibits. All exhibits referred to herein are attached hereto and incorporated by reference: Exhibit "A": Legal description of the Property 22.7 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, acts of terrorism, civil commotion and fire or other casualty, legal actions attacking the validity of this Agreement or the CITY or ARTS' operations of the Property, 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. 22.8 Governing Law. This Agreement shall be governed, construed, and enforced in accordance with the laws of the State of California. 22.9 Independent Contractor. ARTS acknowledges that it is an independent contractor; that it alone retains control of the manner of conducting its activities in furtherance of this Agreement; and that it, as well as any persons, contractors or agents it may employ, are not employees of CITY for any purpose. 22.10 Interpretation. The provisions of this Agreement shall be liberally construed to effectuate its purpose. The language of all parts of this Agreement shall be construed simply according to its plain meaning and shall not be construed for or against either party. Maintenance and Operating Agreement Page 19 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 225 of 297 Attachment No. 2 22.11 ARTS' Agreement Administration. ARTS confirms that ARTS' Agreement Administrator has been given full operational responsibility for compliance with the terms of this Agreement. ARTS shall provide the CITY with a written schedule of its normal hours of business operation on the Property, and ARTS' Agreement Administrator, or a representative designated thereby, shall be available to the CITY during ARTS' normal business hours, to resolve problems or answer question pertaining to this Agreement and ARTS' operations on the Property. 22.12 Modification. The provisions of this Agreement may not be modified, except by a written amendment signed by both parties. 22.13 Partial Invalidity. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall not be affected thereby. Each provision shall be valid and enforceable to the fullest extent permitted by law. 22.14 Successors and Assigns. This 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. ARTS shall not assign this agreement to any other party unless approved in writing by the CITY. 22.15 Time of Essence. Time is of the essence of each and every provision of this Agreement. 22.16 Waiver. No provision of this Operating Agreement or the breach thereof shall be deemed waived, except by written consent of the party against whom the waiver is claimed. IN WITNESS WHEREOF, the CITY and ARTS have duly executed this Agreement as of the day and year first above written. CITY OF NATIONAL CITY A REASON TO SURVIVE a California non-profit corporation, d.b.a. "ARTS" By: Ron Morrison, Mayor APPROVED AS TO FORM: Angil P. Morris -Jones By: Roberto M. Contreras Deputy City Attorney Maintenance and Operating Agreement By: Fabienne Hanks, Board Chair By: Amanda Montgomery, Board Member Page 20 of 20 City of National City and , 2018 A Reason to Survive (ARTS) 226 of 297 < 1- L) i LIU ).< mizin„ CCII mama Exhibit B Boundary of the ARTS M&O Agreement 112O17 • • fe data 02017 Goole U -:i-rd States 228 of 297 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A MAINTENANCE AND OPERATING AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND A REASON TO SURVIVE (ARTS), CONSISTING OF A TERM OF 36 MONTHS WITH AN OPTION TO EXTEND THE TERM FOR UP TO TWO ADDITIONAL 60 MONTH PERIODS FOR THE CITY -OWNED LAND AND BUILDING LOCATED AT 200 EAST 12TH STREET IN NATIONAL CITY WHEREAS, as part of the General Plan, the City's goal is to develop a cultural arts program to encourage and facilitate the development of art in public spaces and promote greater public awareness of architectural, urban design, and cultural heritage of the City; and WHEREAS, A Reason to Survive ("ARTS'') has been a catalyst in establishing an arts, culture, and education district in the National City downtown area, and is dedicated to creating a movement to educate the public on the importance of the arts as a prevention and intervention vehicle to create positive transformation in children and youth facing adversity; and WHEREAS, the City owns the improved real property commonly known as 200 East 12th Street, National City (the "Property"); and WHEREAS, the improvements on the Property are sometimes referred to as the "Arts Center" building; and WHEREAS, the City desires the services of an organization to maintain and operate the Property in a manner beneficial to the culture and educational enrichment of the general public; and WHEREAS, the City has further determined that ARTS is skilled in creating public art, including capital art projects, that beautifies the community, and is capable of lifting the spirits of residents and visitors to National City ; and WHEREAS, ARTS and the City desire to enter into a Maintenance and Operating Agreement ("Agreement") for the Property with a term of thirty-six (36) months with an option to extend the term for up to two (2) sixty (60) month periods for ARTS to provide arts, culture, and education at the property located at 200 East 12th Street; and WHEREAS, ARTS will pay one dollar ($1) and deliver projects and programs in an annual value of $125,000 in consideration of the Agreement; and WHEREAS, as of December 31, 2017, ARTS will owe a balance of $112,500 in unpaid rent ("Unpaid Rent"); and WHEREAS, the Unpaid Rent will be paid off by the additional delivery of $112,500 in Projects and Programs during the initial thirty-six (36) month term; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City authorizes the Mayor to execute a Maintenance and Operating Agreement by and between the City and A Reason to Survive (ARTS), consisting of a term of 36 months with an option to extend the term for up to two additional 60 month periods for the City -owned land and building located at 200 East 12th Street in National City. Said Maintenance and Operating Agreement is on file in the office of the City Clerk. 229 of 297 Resolution No. 2017 — Page Two PASSED and ADOPTED this 5th day of December, 2017. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ron Morrison, Mayor 230 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 231 The following page(s) contain the backup material for Agenda Item: Report from the Civil Service Commission to the City Council of the City of National City. (Human Resources) 231 of 297 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 5, 2017 AGENDA ITEM NO. ITEM TITLE: Report from the Civil Service Commission to the City Council of the City of National City PREPARED BY: Lilia Munoz PHONE: 336-4309 EXPLANATION: DEPARTMENT: Human Resources APPROVED Br Pursuant to City of National City Municipal Code Title 16, Section 16.09.020, the chair of each commission shall appear before the City Council on an annual basis and present a brief report on the activities and accomplishments of the commission. With this item, staff brings before you the chair's report on the activities of the Civil Service Commission for the period July, 2016 through June, 2017. FINANCIAL STATEMENT: ACCOUNT NO. There is no direct fiscal impact associated with this item. APPROVED: APPROVED: ENVIRONMENTAL REVIEW: This is not a project and, therefore, is not subject to environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Accept and file report. BOARD / COMMISSION RECOMMENDATION: The Civil Service Commission voted unanimously to approve and submit the report at their meeting of November 9, 2017. ATTACHMENTS: Report from Civil Service Commission 232 of 297 CALIFORNIA NA' �' ON1 L CZ' V (—^— ac a r 1NCORPOR ATE) DATE: December 5, 2017 TO: Mayor and City Council FROM: David Garcia, Chairperson to the Civil Service Commission SUBJECT: Annual Report from the Civil Service Commission to the City Council of the City of National City BACKGROUND The Civil Service Commission (CSC) is a five member Commission: Chairperson David E. Garcia Vice Chairperson Rafael S. Courtney Commissioner Leslie Coyote Commissioner Fred A. Puhn Commissioner William J. Sendt As defined by City of National City Municipal Code Section 16.02.050, it is the authority of the CSC to: A. Determine the order of business for the conduct of its meetings and hold regular meetings once every other month, and such special meetings as are necessary on call of the chair or a majority of the members of the commission after at least twenty-four hours' written notice has been posted and served upon the members. A majority of the members of the commission shall constitute a quorum for the transaction of business. A majority of a quorum vote is necessary to act upon a matter. All meetings shall be conducted in compliance with the Ralph M. Brown Act (the "Open Meeting Law," California Government Code Section 549850 et seq.) B. Act in an advisory capacity to the city council and the director of human resources on personnel matters in the city service, and when requested by the city council or the director of human resources, hold hearings and make recommendations on any matter of personnel administration. C. Hear appeals submitted by persons in the competitive service, or candidates for a position in the competitive service, relative to any alleged infringement upon their rights and privileges granted by this title or the civil service rules, and certify its findings and recommendations. 233 of 297 Civil Service Commission Report from the Civil Service Commission to the City Council of the City of National City December 5, 2017 Page 2 D. In any investigation or hearing conducted by the commission, have the power to examine witnesses under oath and compel their attendance or production of evidence by subpoena issued in the name of the city and attested by the city clerk. It shall be the duty of the chief of police or his/her designee to cause all such subpoenas to be served, and refusal of a person to attend or to testify in answer to such a subpoena shall subject the person to prosecution in the same manner set forth by law for failure to appear before the city council in response to a subpoena issued by the city council. Each member of the civil service commission shall have the power to administer oaths to witnesses. E. Publish and post notices of the examinations for positions in the competitive service, receive applications therefore, conduct and score examinations, and certify to the appointing power a list of all persons eligible for appointment in the appropriate class in the competitive service. The civil service commission shall cause the duties imposed upon it by this paragraph to be performed by the director of human resources. F. Keep a record of its resolutions, transactions, findings, and determinations, which record shall be a public record unless the city attorney determines otherwise. (Ord. No. 2013-2381, § 1, 2-5-2013) The purpose of this report is to provide the City Council with a report of the activities of the CSC for the period July, 2016 through June, 2017. DISCUSSION The Municipal Code calls for the CSC to meet every other month, for a total of six times a year. During the period under discussion, the CSC held a total of five meetings. One meeting was cancelled as there were no business items pending. Scheduled Meeting Date Outcome Attendance July 14, 2016 Meeting held All present September 8, 2016 Meeting cancelled N/A November 10, 2016 Meeting held One commissioner absent January 12, 2017 Meeting held All present March 9, 2017 Meeting held Two commissioners absent May 11, 2017 Meeting held One commissioner absent At said meetings, the CSC: • Approved the creation of one new classification o Deputy City Manager 234 of 297 Civil Service Commission Report from the Civil Service Commission to the City Council of the City of National City December 5, 2017 Page 3 • Exempted positions from classified service o Deputy City Manager • Amended the class specification of one classification • Executive Assistant IV • Suspended Competition, allowing for the internal promotion of two employees that had been performing the hire level duties for an extended period of time • Approved a shorten probationary period for one employee • Waived the provision of Civil Service Rule 407.1(B).2 and temporarily appoint six fire safety employees for a period of one year to implement pilot program (Rule 407.1 allows for temporary appointments of up to six months) • Reviewed and denied appeal of examination results from Firefighter employee GOALS Over the next report period the goals of the CSC is to continue development in the form of training to enhance knowledge in the area of their function, and to address the possible need of recruitment procedures for applicants in a promotional examination process. 235 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 236 The following page(s) contain the backup material for Agenda Item: Discussion regarding City Council Policy #802, "City Support for Special Events, Activities, Programs and Services." (Finance) 236 of 297 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 5, 2017 AGENDA ITEM NO.: ITEM TITLE: Discussion regarding City Council Policy # 802, "City Support for Special Events, Activities, Programs and Services." PREPARED BY: Mark Roberts, Director of Finance PHONE: 619-336-4330 EXPLANATION: See explanation. DEPARTMENT: Finance,�� APPROVED BY: L1,177, a� FINANCIAL STATEMENT: ACCOUNT NO. NA APPROVED: L-7/74 d XaL FINANCE 1 APPROVED: MIS ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION FINAL ADOPTION STAFF RECOMMENDATION: Provide staff direction regarding amendment of City Council Policy # 802, "City Support for Special Events, Activities, Programs and Services." BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Explanation 2. City Council Policy # 802, "City Support for Special Events, Activities, Programs and Services" 237 of 297 Attachment Discussion regarding City Council Policy # 802, "City Support for Special Events, Activities, Programs and Services." December 5, 2017 Explanation At its regular scheduled meeting of September 19, 2017, the City Council discussed documentation provided by organizations for funding received from the City for programs, services, and activities and directed staff to bring forward Council Policy # 802 for discussion. At its regular scheduled meeting of November 15, 2016, the City Council gave direction to staff to bring back policy language intended to create accountability in such cases where the City Council provides funding to an outside group or individual for the performance of a program, service, or activity other than a special event or capital project. Having reviewed existing City Council policies, staff determined amendment of City Council Policy # 802, "City Support for Special Events, Activities, Programs and Services," was the most appropriate manner by which to provide for such accountability and proposed the following language, which was approved by the Council at its regular scheduled meeting of January 17, 2017: "To the extent economic conditions and the City's resources allow, one-time funding support may be authorized in support of a program, service or activity, other than a special event, when found by the City Council to be of benefit to the community or the City. a. Requests must include a specific purpose for the funding (i.e. to pay, in whole or in part, for the purchase or rental of specific supplies or equipment). b. Payments will be processed by the Department of Finance upon receipt of documentation of allowable incurred expenses, in a format prescribed by the Director of Finance." As currently written, City Council Policy # 802 is not applicable to ongoing programs, services, or activities. Therefore, an organization receiving funding for such programs, services, or activities is not bound by the requirement to provide documentation of expenses. The expense documentation requirement also does not apply to events co- sponsored by the City. 238 of 297 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: January 17, 2017 BACKGROUND: The Council recognizes that special events are a lifestyle that defines National City's history and makes our City unique. However, City Council is also concerned with the increasing cost of City support of special events, examples of which are concerts, festivals, parades and sporting events which take place at City parks and facilities or in City streets and rights -of -way. The Council notes that City support of special events, be it police traffic service, fire standby service or other support, is not specifically budgeted and is provided through reductions in the level of service for budgeted programs. DEFINITIONS: 1. "SPECIAL EVENT" as defined in Municipal Code Section 15.60.005 means any organized activity conducted for a common or collective purpose, use or benefit which involves the utilization of, or has an impact upon, public property or facilities and the need for providing municipal and public safety services in response to the event. Examples of Special Events include, but are not limited to: a. Parades b. Public concerts and other community cultural events c. Demonstrations d. Circuses e. Fairs and festivals f. Community or neighborhood block parties and street dances g. Mass participation sports (marathons, bicycles races and tours) h. Film making activities i. Public speaker events 2. "CITY SUPPORT" means any City services required to maintain minimal interference and inconvenience to the general public resulting from a Special Event. City Support includes, but is not limited to: a. Special Event permit processing b. Police services c. Sanitation and cleanup d. Maintaining access for emergency vehicles and provision of medical care e. Street closures f. Use of City Stage, PA equipment and/or Information Trailer 239 of 297 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: January 17, 2017 City Support does not include internal security, crowd control and other services considered the responsibility of the Special Event Sponsor. 3. "NON PROFIT" means a non-profit tax exempt organization (501(c)(3)) that is exempted from payment of income taxes by federal or state law and which has been in existence for a minimum of six (6) months preceding the date of application for a special event. 4. "PUBLIC FACILITY" means any property, building, or public access (street, park, theater, etc.) that lies within the City and which is owned or operated by the City for public benefit or usage. 5. "EVENT ORGANIZER" means any person, group, or corporation assuming responsibility for planning, promoting, and carrying out a Special Event. 6. "CITY MANAGER" means the City Manager or designee. 7. "CITY CO -SPONSORED EVENT" is defined as an annual event that occurs within the boundaries of National City. The co -sponsoring agency must be a National City non-profit or branch thereof and the event must benefit National City and its residents. Applications must be submitted as a special event application to the Neighborhood Services Department, deadlines are noted annually. The current City co-sponsorship events list (Attachment A) are considered grandfathered and will not need to apply annually for approval. 8. "CITY SPONSORED EVENT" is defined as an annual community -wide event that is planned and managed by one or more City departments. The current City sponsored events list (Attachment "B") are considered grandfathered and will not need to apply annually for approval. These events will not require a secondary City Council approval through the TUP or Special Event process. City Staff will process event applications and City Council will be updated of these events annually and or on a quarterly basis. PURPOSE: It is the purpose of this policy to provide guidelines for the support of special events, consistent with the least possible disruption to normal City services. POLICY: A. Co -Sponsored Events It is the policy of the City Council that: 240 of 297 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: January 17, 2017 1. To the extent that economic conditions and the City's resources allow, the City manager upon City Council notification, may provide reasonable City support of up to $1,200 per event day to non-profit special events that benefit National City residents, are held wholly within City limits, and which are listed in Attachment A and are considered to be City co -sponsored annual events. 2. Any new non-profit applicant (not on Attachment A) requesting co-sponsorship must apply to be considered for the City co -sponsored event list which will be reviewed annually by the 802 policy committee. The 802 policy committee will recommend changes to the co -sponsored event list only when required on an annual basis (per Section 7 of Definitions- page 2). As a City co -sponsored event, organizations shall prominently place the City's logo in all advertising materials promoting the event and provide space for the City to set up an information booth, per the City Council's discretion. 3. Any new Special Event or TUP applicant not currently on the approved co- sponsored list and requesting fee waivers, may only be considered to have fees waived up to the minimum level of $1000 per event day. Attachments "A" and `B" are the current list of approved co -sponsored and sponsored events respectively. Any new events considering co-sponsorship must apply through the annual process. B. Sponsored Events It is the policy of the City Council that to the extent economic conditions and the City's resource allow, National City will sponsor and provide community -wide annual events which are listed in Attachment B. Event fees that are incurred by City departments will be charged against an account designed for that purpose. The City Manager shall notify the City Council of upcoming events on a quarterly basis. C. Other Events, Activities, Programs and Services It is the policy of the City Council that: 1. To the extent that economic conditions and the City's resources allow, the City Manager may provide City support for a special event conducted by a non-profit organization. City support would be limited to a waiver of permit processing fees and the event must benefit National City residents. Examples include an event where there is insufficient time for Council approval, such as in the event of a catastrophe or an emergency situation. The City Manager shall notify the City Council of any such support on a monthly basis. 2. The City Manager shall charge City costs for any special event of a commercial nature; also, the City Manager shall require organizers of commercial special 241 of 297 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: January 17, 2017 events to pay the City a negotiated percentage of gross revenues of a flat fee. Such revenues will be deposited into the City's General Fund. 3. Proceeds from a special event of a commercial nature that benefits a local non- profit organization, shall show proof of donation within 10 business days. Such proof shall be submitted to the City's Finance Department (Revenue & Recovery). Failure to provide proof of donation will result in loss of deposit and may jeopardize future use of City facilities. 4. To the extent economic conditions and the City's resources allow, one-time funding support may be authorized in support of a program, service or activity, other than a special event, when found by the City Council to be of benefit to the community or the City. a. Requests must include a specific purpose for the funding (i.e. to pay, in whole or in part, for the purchase or rental of specific supplies or equipment). b. Payments will be processed by the Department of Finance upon receipt of documentation of allowable incurred expenses, in a format prescribed by the Director of Finance. D. El Toyon Park The use of El Toyon Park for special events is prohibited. E. Use of Mobile Stage The mobile stage shall be used only on City parklands, and/or other public property within the limits of National City. Regular use that is approved annually includes starred events on Attachments "A" and "B". Any events outside this purview and requesting use of the City stage must apply through the special event process. The USER of the stage shall be responsible for any damage to the unit resulting from carelessness or misuse. RELATED POLICY REFERENCES: City Council Policy # 704 — Limitation on City Approved Special Events within the City City Council Policy # 801 — Field and Facility Rules and Regulations 242 of 297 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: January 17, 2017 Event Title ATTACHMENT 'A' NATIONAL CITY CO -SPONSORED EVENTS Organizer Sweetwater Kiwanis Carnival Sweetwater Kiwanis Club Granger Jr. High Cultural Fair* Granger Jr. High Job Fair July 4th Carnival* Mabuhay Festival Auto Heritage Days* Relay for Life* Salute to Navy Maytime Band Review Sweetwater High Homecoming Community Concert Band Series (up to 4 concerts annually/per year) Spirit of the Holidays Christmas in July Clean -Ups *Indicates use of City Mobile Stage N.C. Chamber of Commerce National City Host Lions Club Mabuhay Festival N.C. Chamber of Commerce American Cancer Society N.C. Chamber of Commerce Maytime Band Association Sweetwater High School N.C. Community Concert Band N.C. College Campus Lions Christmas in July Timing March Spring Spring July June August August October October Fall Quarterly December Various Note: Co -sponsored events that reoccur on the same date, or weekend, each year will maintain "first rights" to their date if the special event permit application is received within five months of the recurring event date. After the five - month application deadline, other interested parties will be able to apply. Events scheduled on recurring weekends (such as the 1 S', 2' 3'"I 4'h, or .5di weekend of a month) will be defined by the first date of the event is open to the public. 243 of 297 TITLE: City Support for Special Events, Activities, Programs and Services POLICY 802 ADOPTED: October 3, 2006 AMENDED: January 17, 2017 ATTACHMENT `B' NATIONAL CITY SPONSORED EVENTS Event Title Organizer Timing Movies in the Park Community Services Summer Miss. National City Pageant* Community Services July National Night Out Police, Community Services, FFA August 9/11 Remembrance Ceremony Fire September State of the City Mayor's Office Fall Tower of Terror* Fire, Community Services October Veteran's Day Community Services November Christmas Tree Lighting Community Services December Community Service Day Community Services April National City Public Safety Fair Police, Fire April *Indicates use of City Mobile Stage 244 of 297 CC/CDC-HA Agenda 12/5/2017 — Page 245 The following page(s) contain the backup material for Agenda Item: Resolution of the Community Development Commission -Housing Authority of the City of National City accepting the findings from the analysis completed by Keyser Marston Associates, Inc., of four financial proposals submitted through a Request for Proposals 245 of 297 CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY COUNCIL AGENDA STATEMENT MEETING DATE: December 5, 20171 AGENDA ITEM NO. ITEM TITLE: Resolution of the Community Development Commission -Housing Authority of the City of National City accepting the findings from the analysis completed by Keyser Marston Associates, Inc., of four financial proposals submitted through a Request for Proposals process; selecting the development team comprised of Community HousingWorks, Inc., a California non-profit public benefit corporation, and Mercy Housing California, Inc., a California non-profit public benefit corporation, for the recapitalization and rehabilitation of Kimball and Morgan Towers located at 1317 and 1415 "D" Avenue in National City; and authorizing the City Manager to execute an Exclusive Negotiating Agreement in order to begin negotiations with the selected developer. PREPARED BY: Carlos Aguirre, Housing & Economic Dev. Mgr. PHONE: 619-336-4391 EXPLANATION: See attached Background Report and Keyser Marston Associates, Inc. ("KMA") Financial Review of the Development Proposals. DEPARTMENT: APPROVED B Housing Economic D:: v�lop � ent FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: T/74/. f_ r� Finance APPROVED: MIS A ranking of the Developer's financial proposals can be found on page 4 and 5 of KMA's report (Attachment No. 2) based on the points awarded to each proposal and their respective financial return. ENVIRONMENTAL REVIEW: The review of development proposals is not considered a project as defined by the California Environmental Quality Act (CEQA), and therefore, is not subject to CEQA review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the Resolution. BOARD 1 COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Background Report 2. KMA Financial Review of Development Proposals 3. Resolution 246 of 297 Attachment No. 1 COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY STAFF REPORT December 5, 2017 Item Resolution of the Community Development Commission -Housing Authority of the City of National City accepting the findings from the analysis completed by Keyser Marston Associates, Inc., of four financial proposals submitted through a Request for Proposals process; selecting the development team comprised of Community HousingWorks, Inc., a California non-profit public benefit corporation, and Mercy Housing California, Inc., a California non-profit public benefit corporation, for the recapitalization and rehabilitation of Kimball and Morgan Towers located at 1317 and 1415 "D" Avenue in National City; and authorizing the City Manager to execute an Exclusive Negotiating Agreement in order to begin negotiations with the selected developer. Background Kimball and Morgan Senior Towers ("Towers") are located in central National City, within the Kimball Community. The two nine -story Towers are located on D Avenue between Kimball Way and 15th Street. Morgan Senior Tower is a 151-unit affordable senior residential property built in 1978. Kimball Senior Tower is a 152-unit affordable senior residential property completed in 1986. On March 4, 2016, the HA's Board of Commissioners ("HA's Board") was presented with a draft RFQ to provide direction in considering qualified development teams for the recapitalization and rehabilitation of the Towers. The RFQ process presented was modeled after the RFQ previously issued in March 2010 for the Kimball and Morgan Tower Enhancement and Expansion Project. The HA was supportive and voted in favor of City staff issuing the RFQ as drafted. The draft RFQ incorporated a Selection Committee to be composed of experienced professionals and community members with working knowledge of affordable housing development, public finance, and community needs that could deliberate on and rank RFQ submissions with respect to the goals, objectives, and scoring criteria provided in the RFQ. The RFQ was issued on March 24, 2016. The RFQ solicited responses from professional affordable housing development teams and considered the following criteria: 1. Experience and qualifications (Max. Score: 25) 2. Leveraging of non -HA resources (Max. Score: 20) 3. Financial Capacity (Max. Score: 20) 4. Operating Experience (Max. Score: 20) 5. Resident Services and Involvement (Max Score: 15) City staff reviewed the RFQ submissions first for completeness and, on the week of May 30, 2016, delivered copies of the eight RFQ submittals to each member of the Selection Committee. The Selection Committee convened on Monday, June 6, 2016 to review and score each submission in an effort to select the project development teams who would be invited to 1 247 of 297 Attachment No. 1 interview. The Selection Committee selected five RFQ proposals for interviews scheduled for Monday, June 13, 2016. After the interviews were completed, the Selection Committee scored the development teams interviewed based on the RFQ's criteria taking into consideration the quality of each interview with the Selection Committee. By calculating an average of all cumulative scoring provided by each Selection Committee Member, the development team consisting of Community Housing Works and Mercy Housing California ranked the highest overall out of a total of 100 points: 1. Community HousingWorks and Mercy Housing California (Overall Score: 83.4) 2. Bridge Housing Corporation (Overall Score: 81.6) 3. Chelsea and Serving Seniors (Overall Score: 77.8 ) 4. National Community Renaissance of California and Reiner Communities (Overall Score: 77.5) 5. The RAHD Group, Affirmed Housing, Community Preservation Partners LLC, Thompson Consulting, and Casa Familiar (Overall Score: 70.6) At the Regular Meeting on October 4, 2016 of the HA, City staff provided a recommendation to the HA's Board to select Community Housing Works and Mercy Housing as the developer for the rehabilitation and recapitalization of Kimball and Morgan Towers based on the scoring provided by the Selection Committee. However, after public and written comments were considered by the HA's Board requesting that the HA's Board provide an opportunity for presentations by each development team, the HA's Board directed City staff to coordinate presentations to be made directly to the HA's Board. As requested by the HA's Board, the five development teams that had previously delivered presentations to the Selection Committee were called to present at the HA's meeting on Tuesday, October 25, 2016. The HA's Board was provided with each RFQ submission and any materials also provided during the RFQ Selection Committee presentations. The development team RFQ responses that were originally submitted were made available for review on the City of National City website. The order of the presentations was drawn randomly by the City Clerk. As directed by the HA's Board, the presentation ground rules were provided in advance to each development team and were the following: 1. Presentations will be the same as made to the original Selection Committee, including the answers to the prior interview questions. 2. Presenters will have no more than 20 minutes, immediately followed by 20 minutes for questions and answers. 3. Presentations should not include a discussion of financial proposals to the HA unless such proposal was part of the original presentation. 4. Presenters should address the attached interview questions during their 20 minute presentations. 5. During development presentations, members of other development teams are asked to refrain from being present in City Council Chambers, out of fairness to each presenting group. 6. As requested by the HA's Board, presenters should refrain from submitting organized public comment. 2 248 of 297 Attachment No. 1 City staff returned on December 6, 2016 carrying forward the recommendation made on October 4, 2016 to enter into an Exclusive Negotiation Agreement with the development team comprised of Community HousingWorks and Mercy Housing since the information provided in the development team presentations made on October 25, 2016 to the HA Board had already been provided and incorporated in the ranking provided by the Selection Committee. However, upon the HA Board's consideration of the strengths found in the qualifications of all five development teams through the presentations made on October 25, 2016 and upon public comments received that suggested that it would not be in the HA's best interest to select a developer without qualifying their financials proposals further, the HA's Board agreed that a review of each development team's financial proposals was necessary to make a final determination. City staff informed the HA's Board that a financial review of proposals would be a lengthy and expensive process, however, several of the development teams stated that they would be interested in funding their participation in a Request for Proposals ("RFP") process that would allow for a thorough comparison of their financial proposals. Based on the developer's interest to fund the process, the HA's Board directed City staff at the HA meeting on December 6, 2016 to provide approaches to implement a RFP process that would incorporate a comparison of financial proposals for the rehabilitation and refinancing of the Towers. Request for Proposals Process and Staff Recommendation City staff has worked with Keyser Marston Associates, Inc. ("KMA") since May 2013 to model and evaluate financing structures for rehabilitating and recapitalizing the Towers. Because of the extensive work KMA conducted, City staff requested a proposal from KMA that would compare approaches to further evaluate the financial models proposed by each development team. On February 7, 2017, the HA's Board considered the approaches included in KMA's proposal. The HA Board then directed City staff to return with a consultant services contract with KMA ("KMA Agreement") to implement a specific approach for the RFP process to further review each financial proposal, provided that the participating development teams ("Participating Developers") covered the cost of the RFP process and review. On April 18, 2017, the HA Board approved the KMA Agreement to proceed with a financial evaluation of the Participating Developers contingent that each Participating Developer enter into a Participation Agreement that would require each Participating Developer to cover the cost of KMA to issue an RFP and evaluate the proposals equally. Four of five development teams considered by the HA Board consisting of (i) Community HousingWorks and Mercy Housing California (collectively, "CHW-Mercy"); (ii) Bridge Housing Corporation ("Bridge"); (iii) Chelsea Investment Corporation and Serving Seniors (collectively, "Chelsea -Serving Seniors"); and (iv) RAHD Group, Affirmed Housing Corporation, Community Preservation Partners LLC, Thompson Consulting and Casa Familiar (collectively, the "Affirmed Group") agreed to participate in the RFP process and pay all costs incurred by the HA in equal share with respect to the KMA Agreement by executing a Participation Agreement. The fifth development team previously considered by the HA Board composed of National Community Renaissance of California and Reiner Communities decided not participate in the RFP process. The Participating Developers were made aware that the HA reserved the right to select any one or none of the Participating Developers. 3 249 of 297 Attachment No. 1 On June 30, 2017 KMA issued the RFP on behalf of the Housing Authority. KMA's criteria, approach, key findings, and financial analysis are found in Attachment No. 2 of this Staff Report. Based on KMA's extensive analysis and key findings, City staff recommends the selection of the team comprised of Community HousingWorks, Inc. and Mercy Housing California, Inc. for the recapitalization and rehabilitation of Kimball and Morgan Towers located at 1317 and 1415 "D" Avenue in National City. City staff also recommends that the HA authorize the City Manager to execute an Exclusive Negotiating Agreement to begin negotiations with Community HousingWorks, Inc. and Mercy Housing California, Inc. 4 250 of 297 Attachment No. 2 ADVISORS IN: REAL ESTATE AFFORDABLE HOUSING ECONOMIC DEVELOPMENT SAN FRANCISCO A. JERRY KEYSER TIMOTHY C. KELLY KATE EARLE FUNK DEBBIE M. KERN REED T. KAWAIIARA DAVID DOEZEMA LOS ANGELES KATHLEEN H. HEAD JAMES A. RABE GREcoRY D. Soo-Hoo KEVIN E. ENGSTROM JULIE L. ROMEY SAN DIEGO PAUL C. MARRA TO: KEYSER MARSTON ASSOCIATES. ADVISORS IN PUBLIC/PRIVATE REAL ESTATE DEVELOPMENT Alfredo Ybarra, Director Housing & Economic Development Department City of National City FROM: KEYSER MARSTON ASSOCIATES, INC. DATE: November 28, 2017 SUBJECT: Review of Development Proposals Kimball and Morgan Towers RFP I. INTRODUCTION A. Background In accordance with our agreement dated May 1, 2017, Keyser Marston Associates, Inc. (KMA) has undertaken an analysis to assist the Community Development Commission -Housing Authority of the City of National City (Housing Authority) in its efforts to select an affordable housing developer to refinance and renovate the 152-unit Kimball Tower and the 151-unit Morgan Tower (Towers), located on D Avenue between Kimball Way and 15th Street. On March 24, 2016, the Housing Authority issued a Request for Qualifications (RFQ) to affordable housing developers. The Housing Authority formed a Selection Committee made up of experienced professionals and community members to review, score, and interview the RFQ submissions. Following the outcome of the RFQ process, the Housing Authority received feedback from respondents suggesting that the Housing Authority issue a Request for Proposals (RFP) for a better understanding of each respondent's anticipated scope of work and financial proposal. 555 WEST BEECH ST., SUITE 46o SAN DIEGO, CALIFORNIA 92LDi PHONE: 619 718 9500 FAX: 61.9 718 9508 17122ka1 WWW.KEYSERMARSTON.COM 16104.011.001 251 of 297 Mr. Alfredo Ybarra Housing & Economic Development, City of National City Attachment No. 2 November 28, 2017 Page 2 The Housing Authority requested KMA's assistance in the issuance of an RFP, evaluating developer responses, preparing long-term feasibility analyses, and providing guidance as to the structuring of the business arrangement between the Housing Authority and the selected developer. It is the Housing Authority's desire to retain ownership of the land and negotiate a long-term ground lease with the selected developer. The selected developer would purchase and operate the existing senior housing units and other improvements from the Housing Authority. The developer would also provide a financial package to finance the rehabilitation of the Towers, preserve current levels of affordability at or below 50% Area Median Income (AMI), and repay any financial assistance provided by the Housing Authority. The Housing Authority issued the RFP on June 30, 2017 to the following four development teams: Developer Team Members BRIDGE Housing Corporation (BRIDGE) BRIDGE, Harley Ellis Devereau, and Allgire General Contractors Chelsea Investment Corporation (CIC) CIC and Serving Seniors Community HousingWorks (CHW) CHW and Mercy Housing Morgan and Kimball Community Partners (MKCP) Community Preservation Partners, The RAHD Group, Thompson Consulting, and Casa Familiar B. KMA Approach In undertaking this assignment, KMA completed the following work tasks: 1. Discussed with the Housing Authority the primary goals and objectives for the Towers. 2. Reviewed pertinent information related to the Towers including the RFQ responses submitted by each developer. 3. Prepared the RFP for distribution to the four development teams. 4. Identified appropriate evaluation criteria and scoring for proposal evaluation. 5. Responded to developer questions regarding the RFP. 17122kaI 16104.011.001 252 of 297 Mr. Alfredo Ybarra Housing & Economic Development, City of National City Attachment No. 2 November 28, 2017 Page 3 6. Participated in tours of the Towers with each development team. Each development team was provided an opportunity to visit each property including common areas/public lounges, laundry room, boiler room, electric room, elevator room, residential units, tenant services offices, and Nutrition Center. 7. Evaluated each developer's RFP response, including the proposed deal structure and business terms. 8. Evaluated each developer's financial pro forma, including 55-year cash flow projections for each developer proposal. 9. Prepared independent financial models of each developer's proposal, adjusting various assumptions used in their financial pro formas, including the developer's 55-year cash flow projections for each Tower. C. Evaluation Criteria The RFP identified the following criteria and points to evaluate each development team's RFP response. Evaluation Criteria Maximum Points (1) Development Program i. Incorporates specific necessary elements for efficient operation of an affordable housing complex and rehabilitation of the Towers ii. Assumes full property renovation and rehabilitation including energy efficient improvements, technology upgrades, upgraded building systems, and property/residential improvements 20 points (2) Depth of Affordability i. Extends affordability covenants as long as feasible and extends the useful life of improvements for at least 20 years ii. Maintains deep levels of affordability for existing and future tenants 20 points (3) Overall Project Feasibility i. Financial pro forma contains valid assumptions and estimates within reasonable range of industry standards 35 points 17122kaI 16104.011.001 253 of 297 Mr. Alfredo Ybarra Housing & Economic Development, City of National City Attachment No. 2 November 28, 2017 Page 4 Evaluation Criteria Maximum Points ii. Project demonstrates long-term economic sustainability iii. Project provides for a financial return to the Housing Authority (4) Soundness of Financing Plan i. Financing plan is reasonable and achievable to enable project completion in a timely manner ii. Financing plan provides a realistic timeline for securing financing iii. Demonstrates successful experience with similar financing plans on comparable projects 25 points Total 100 points D. Developer Financial Proposals As requested in the RFP, each development team submitted a financial proposal and pro forma for each Towers. Every development team assumed in their financial proposal the use of 4% Low Income Housing Tax Credits and tax-exempt bonds for one or both Towers, except for CHW. CHW proposed to apply for 9% tax credits in the At -Risk Set -aside for Morgan Tower given Morgan Tower's expiring FHA 231 Agreement. The tax reform plan recently approved by the U.S. House of Representatives calls for the elimination of private activity tax-exempt bonds. If approved by the Senate, states would no longer have the ability to issue tax-exempt private activity bonds and their linked authority to provide 4% Low Income Housing Tax Credits. As a result, the financial proposals submitted by each development team would no longer be valid. At this time, it is unknown if the Senate will pass the tax reform plan and become law as currently drafted. II. KEY FINDINGS As summarized in Summary Tables 1 through 3, attached, the RFP submittals were ranked based on the evaluation criteria noted above and each development team's financial proposal. The financial proposal figures below represent the following: 17122kaI 16104.011.001 254 of 297 Mr. Alfredo Ybarra Housing & Economic Development, City of National City Attachment No. 2 November 28, 2017 Page 5 1. Upfront cash proceeds to the Housing Authority, estimated as the purchase price for the existing senior housing units and other improvements less the Seller Note proposed to be carried back by the Housing Authority; 2. Net present value of annual subsidy contributions from the developer to the Nutrition Center over a 55-year period; 3. Net present value of Seller Note repayments to the Housing Authority; and 4. Net present value of other annual contributions provided to the Housing Authority from project cash flow over 55 years. The ranking and points awarded do not take into consideration the possibility that 4% tax credits and tax-exempt bonds may no longer be available after December 31, 2017. Rank Developer Points (1) Financial Proposal (2) Kimball Morgan Developer Response (3) KMA Adjusted Pro Forma (4) #1 Community HousingWorks 90 pts. 85 pts. $67.0 M $62.6 M #2 Chelsea Investment 85 pts. 85 pts. $70.0 M $60.9 M Corporation #3 MK Community Partners 75 pts. 75 pts. $52.2 M $54.1 M #4 BRIDGE Housing 70 pts. 70 pts. $27.4 M $38.0 M (1) See Summary Table 1, Selection Criteria Scoring Sheet, attached. (2) Reflects upfront cash payment and present value of annual contributions (i.e., payment to Nutrition Center, repayment of seller note, and other cash flow to the Housing Authority) for Kimball Tower and Morgan Towers combined. See Summary Tables 2 and 3, attached. (3) Based on RFP response submitted by developer; see Section III. (4) Reflects pro formas adjustments made by KMA related to acquisition costs, rehabilitation costs, and monthly rent; see Section IV. As shown above, Community HousingWorks ranked #1, receiving the highest number of points. The CHW proposal was projected to provide the highest financial return to the Housing Authority at $62.6 M based on the KMA adjusted pro forma. This was followed by #2 ranked Chelsea Investment Corporation, estimated to provide the Housing Authority with a return of $60.9 M; #3 ranked MK Community Partners with a Housing Authority financial return of $54.1 M; and #4 ranked BRIDGE Housing with a financial return to the Housing Authority of $38.0 M. 17122kaI 16104.011.001 255 of 297 Mr. Alfredo Ybarra Housing & Economic Development, City of National City Attachment No. 2 November 28, 2017 Page 6 It is important to note that the financial proposal figures shown above in either the "Developer Response" column or the "KMA Adjusted Pro Forma" column do not represent the ultimate outcome of any transaction that the Housing Authority may enter with a selected developer. Rather, there are a series of variables yet to be determined (e.g., scope of cost of rehabilitation, appraised acquisition costs, and achievable fair market rent, etc.) that will influence the final financial outcomes for the Towers. III. DEVELOPER FINANCIAL PROPOSALS The RFP required each team to submit a financial proposal and pro forma using the KMA pro forma template. Each developer's pro forma is summarized in a side -by -side comparison format in Attachment A, and includes the following: • Table 1: Development Costs — Estimates the costs incurred by the developer to acquire and rehabilitate the Towers. • Table 2: Net Operating Income (NOI) — Estimate of stabilized NOI generated by each Tower from monthly rental income and other income (i.e., laundry/vending); less operating expenses. • Table 3: Estimate of Seller Note — Calculated as the difference between achievable sources of funds and total development costs, as illustrated below: Estimate of Seller Note Sources of Funds: • Permanent Loan • Tax Credit Equity Investment • Deferred Developer Fee • General Partner Equity Contribution • Income During Construction • Other Funding Sources Total Development Costs Including Acquisition Seller Note • Table 4: Cash Proceeds to the Housing Authority — Upfront cash paid to the Housing Authority. Estimated as the purchase price proposed by each developer less the seller note. 17122ka 1 16104.011.001 256 of 297 Mr. Alfredo Ybarra Housing & Economic Development, City of National City Attachment No. 2 November 28, 2017 Page 7 A. Key Terms and Assumptions in Developers' Pro Formas and Financial Proposals KMA reviewed the financial proposals and pro formas submitted by each development team for each Tower. An overview of key assumptions used in each developer's financial pro proposal is presented below. The following does not reflect a complete itemization of all inputs and assumptions assumed by each development team. (1) BRIDGE Housing Kimball Tower: 1. Ground lease term of 65 years with two 10-year options (total of 85 years). 2. Annual ground lease payment of $237,500 per year (escalating at 2.5% per year) for potential use toward Nutrition Center. 3. Acquisition costs of $143,000 per unit or $21.8 M total. 4. Monthly rent of $1,194 for 150 units based on National City's Payment Standard Voucher of $1,235 less a $41 utility allowance. 5. Operating expenses1 of $6,288 per unit per year. 6. Refinancing with a tax-exempt bond at 5.41% interest for 35 years; and 4% tax credits with an estimated price of $0.96. 7. Total developer fee of $5.1 M. 8. General Partner equity contribution of $3.6 M. 9. Seller Note totaling $13.6 M. 10. 50% of residual receipts paid to the Housing Authority beginning in Year 1 for repayment of the Seller Note. 11. Projected repayment of Seller Note in Year 55. 1 Excludes replacement reserves, property taxes, service amenities, affordable housing monitoring fee, issuer's fee, and annual contribution toward Nutrition Center. 17122kaI 16104.011.001 257 of 297 Mr. Alfredo Ybarra Housing & Economic Development, City of National City Morgan Tower: Attachment No. 2 November 28, 2017 Page 8 1. Ground lease term of 65 years with two 10-year options (total of 85 years). 2. Annual ground lease payment of $237,500 per year (escalating at 2.5% per year) for potential use toward Nutrition Center. 3. Acquisition costs of $152,000 per unit or $23.0 M total. 4. Monthly rent of $1,194 on 150 units based on National City's Payment Standard Voucher of $1,235 less a $41 utility allowance. 5. Operating expenses1 of $6,336 per unit per year. 6. Refinancing with a tax-exempt bond at 5.41% interest for 35 years; and 4% tax credits with an estimated price of $0.96. 7. Total developer fee of $5.2 M. 8. General Partner equity contribution of $3.7 M. 9. Seller Note totaling $14.4 M. 10. 50% of residual receipts paid to the Housing Authority beginning in Year 1 for repayment of the Seller Note. 11. Projected repayment of Seller Note in Year 55. (2) Chelsea Investment Corporation Kimball Tower: 1. Ground lease term of 65 years. 2. $3.0 M pre -paid ground lease payment. 3. Acquisition costs of $207,000 per unit or $34.1 million total. 4. Monthly rent of $1,500 on 150 units based on a value analysis conducted by Lea & Company. 17122kaI 16104.011.001 258 of 297 Mr. Alfredo Ybarra Housing & Economic Development, City of National City Attachment No. 2 November 28, 2017 Page 9 5. Operating expenses' of $4,911 per unit per year. 6. $237,500 annual contribution to Nutrition Center (escalating at 2.5% per year). 7. Refinancing with a tax-exempt bond at 4.0% interest for 40 years; and 4% tax credits with an estimated price of $1.05. 8. Total developer fee of $6.6 M. 9. Deferred developer fee and General Partner equity contribution totaling $4.1 M. 10. 50% of residual receipts paid to the Housing Authority beginning in Year 1 for repayment of the Seller Note. 11. Projected repayment of Seller Note in Year 19. Morgan Tower: 1. Ground lease term of 65 years. 2. $3.0 M pre -paid ground lease payment. 3. Acquisition costs of $217,000 per unit or $32.7 million total. 4. Monthly rent of $1,500 on 150 units based on a value analysis conducted by Lea & Company. 5. Operating expenses' of $4,900 per unit per year. 6. $237,500 annual contribution to Nutrition Center (escalating at 2.5% per year). 7. Refinancing with a tax-exempt bond at 4.0% interest for 40 years; and 4% tax credits with an estimated price of $1.05. 8. Total developer fee of $6.7 M. 9. Deferred developer fee and General Partner equity contribution totaling $4.2 M. 17122ka1 16104.011.001 259 of 297 Mr. Alfredo Ybarra Housing & Economic Development, City of National City Attachment No. 2 November 28, 2017 Page 10 10. 50% of residual receipts paid to the Housing Authority beginning in Year 1 for repayment of the Seller Note. 11. Projected repayment of Seller Note in Year 21. (3) Community HousingWorks Kimball Tower: 1. Ground lease term of 99 years, including extensions. 2. Ground lease payment of 50% of residual receipts after repayment of Seller Note. 3. Acquisition costs of $218,000 per unit or $33.1 million total. 4. Monthly rent of $1,301 on 150 units based on National City's Fair Market Rent of $1,342 less $41 utility allowance. 5. Operating expenses' of $4,600 per unit per year. 6. Refinancing with a tax-exempt bond at 4.5% interest for 35 years; and 4% tax credits with an estimated price of $1.03. 7. Total developer fee of $6.6 M. 8. General Partner equity contribution totaling $4.1 M. 9. 50% of residual receipts paid to the Housing Authority beginning in Year 1 for repayment of the Seller Note. 10. Projected repayment of Seller Note in Year 33. Morgan Tower: 1. Ground lease term of 99 years, including extensions. 2. Ground lease payment of 50% of residual receipts after repayment of Seller Note. 3. Acquisition costs of $230,000 per unit or $34.7 million total. 17122kaI 16104.011.001 260 of 297 Mr. Alfredo Ybarra Housing & Economic Development, City of National City Attachment No. 2 November 28, 2017 Page 11 4. Monthly rent of $1,342 on 150 units based on National City's Fair Market Rent. 5. Operating expenses 1 of $4,600 per unit per year. 6. $475,000 annual contribution to Nutrition Center (escalating at 3.5% per year). 7. Refinancing with conventional financing at 5.6% interest for 35 years; and 9% tax credits (in the At - Risk Set -Aside) with an estimated price of $1.02. 8. Total developer fee of $2.0 M. 9. 50% of residual receipts paid to the Housing Authority beginning in Year 1 for repayment of the Seller Note. 10. Projected repayment of Seller Note in Year 55. (4) MK Community Partners Kimball Tower: 1. Ground lease term of 99 years. 2. Ground lease payment of $100 per year. 3. Acquisition costs of $127,000 per unit or $19.3 M total. The Housing Authority has an option to repurchase improvements for $1.00 at end of compliance period. 4. Monthly rent of $1,342 on 150 units based on National City's Fair Market Rent. 5. Operating expenses' of $5,364 per unit per year. 6. Funding for Nutrition Center paid by the Housing Authority from $19.3 M acquisition proceeds and/or the Housing Authority portion of project cash flow. 7. Refinancing with a tax-exempt bond at 4.75% interest for 35 years; and 4% tax credits with an estimated price of $0.98. 8. Total developer fee at $4.7 M. 17122ka1 16104.011.001 261 of 297 Mr. Alfredo Ybarra Housing & Economic Development, City of National City Attachment No. 2 November 28, 2017 Page 12 9. Deferred developer fee totaling $3.0 M. 10. 20% of deferred developer fee payments and 100% of residual receipts after repayment of deferred developer fee paid to the Housing Authority. Morgan Tower: 1. Ground lease term of 99 years. 2. Ground lease payment of $100 per year. 3. Acquisition costs of $127,000 per unit or $19.3 M total. The Housing Authority has an option to repurchase improvements for $1.00 at end of compliance period. 4. Monthly rent on 148 units based on National City's Fair Market Rent of $1,342; three non -HAP units with a monthly rent of $811. 5. Operating expenses' of $5,294 per unit per year at Morgan Tower. 6. Funding for Nutrition Center paid by the Housing Authority from $19.3 M acquisition proceeds and/or the Housing Authority portion of project cash flow. 7. Refinancing with a tax-exempt bond at 4.75% interest for 35 years; and 4% tax credits with an estimated price of $0.98. 8. Total developer fee at $4.7 M. 9. Deferred developer fee totaling $3.0 M. 10. 20% of deferred developer fee payments and 100% of residual receipts after repayment of deferred developer fee paid to the Housing Authority. B. Seller Note Based on the above assumptions, KMA calculated the Seller Note requested of the Housing Authority as identified in the developer's proposals. As indicated above, the Seller Note is calculated as the difference between sources of funds and total development costs, as follows: 17122ka1 16104.011.001 262 of 297 Mr. Alfredo Ybarra Housing & Economic Development, City of National City Attachment No. 2 November 28, 2017 Page 13 Estimate of Total Seller Note (1) Developer Proposals BRIDGE CIC CHW MK Community Partners I. Sources of Funds Permanent Loan $20.0 M $50.9 M $34.6 M $41.8 M Tax Credits $27.1 M $38.5 M $42.4 M $25.1 M Developer Equity (2) $7.3 M $8.3 M $4.1 M $6.1 M Other $1.8 M $8.5 M $6.2 M $0.0 M Total Sources of Funds $56.2 M $106.2 M $87.3 M $73.0 M II. Development Costs ($84.2) M ($112.6) M ($101.4) M ($73.5) M III. Seller Note ($28.0) M ($6.4) M ($14.1) M ($0.5) M (1) Figures shown are for Kimball and Morgan Towers combined. (2) Includes both deferred developer fee and General Partner equity contribution. C. Total Value to the Housing Authority For each developer proposal, KMA estimated the financial return to the Housing Authority. As indicated above, the Housing Authority's financial return was assumed to include upfront proceeds paid to the Housing Authority (i.e., proposed purchase price less the Housing Authority Seller Note) and the present value of annual contributions to the Housing Authority for the Nutrition Center, repayment of the Seller Note, and other cash flow, as follows: Estimated Total Value to the Housing Authority (1► Developer Proposals BRIDGE CIC CHW MK Community Partners I. Purchase Price $44.7 M $64.1 M $67.8 M $38.5 M II. (Less) Seller Note ($28.0) M ($6.4) M ($14.1) M ($0.5) M III. Upfront Cash Proceeds to the Housing Authority $16.8 M $57.7 M $53.7 M $38.0 M IV. Present Value of Annual $10.6 M $12.3 M $13.4 M $13.7 M Contributions (2) V. Total Value to the Housing Authority $27.4 M $70.0 M $67.1 M $51.7 M (1) Figures shown are for Kimball and Morgan Towers combined. (2) Reflects present value of annual contributions to Nutrition Center, repayment of seller note, and other cash flow to the Housing Authority. Assumes discount rate of 8.0% for contributions toward Nutrition Center and 10% for repayment of Seller Note and/or cash flow to the Housing Authority. 17122kal 16104.011.001 263 of 297 Mr. Alfredo Ybarra Housing & Economic Development, City of National City IV. KMA ADJUSTED PRO FORMAS Attachment No. 2 November 28, 2017 Page 14 During the RFP response period, the developers were provided an opportunity to submit questions to KMA seeking clarification or additional information regarding information contained in the RFP. Each question and KMA response were circulated to all development teams. Attachment C presents a list of the questions and responses provided to the developers. In particular, developers were provided guidance regarding the rehabilitation budget and monthly rent assumption to use in their pro forma submittal, as follows: • Rehabilitation Costs: For proposal purposes, each respondent shall assume a rehabilitation budget allowance of $55,000 per unit. This figure is assumed to include contract overhead fee, general conditions, and contractor contingency. Figure does NOT include FF&E/amenities and owner contingency. • Monthly Rent: Respondents are to use the current Fair Market Rents (FMR) that are found on the Housing Authority's utility allowance schedule. The current monthly utility allowance paid by tenants totals $41 per month. KMA found that some developers adjusted these directive assumptions based on input from third parties and/or other factors. In addition, the developers' estimates for the Tower's acquisition costs varied greatly. As such, in order to better understand the overall project feasibility and soundness of each team's financing plan, KMA adjusted the developer's pro formas by equalizing three items, as follows: 1. Acquisition Costs — Assumed at $200,000 per unit for each tower (or $60.6 M for both Towers combined). This represents the approximate mid -range estimate of acquisition costs assumed by the developers. KMA understands that the ultimate acquisition costs will be determined by an appraiser, subject to review/approval by the Housing Authority and other lenders partners proposed for the Towers. 2. Building Rehabilitation Costs — Assumed at $55,000 per unit inclusive of prevailing wages. Actual building rehabilitation costs will be determined based on the final scope and costs estimates proposed for the Towers. 3. Monthly Rent —Assumed at $1,301 reflecting Fair Market Rent of $1,342 less a $41 utility allowance. It is anticipated that the ultimate final monthly rent will be determined based on the Towers' achievable Fair Market Rents as determined by HUD. 17122kaI 16104.011.001 264 of 297 Mr. Alfredo Ybarra Housing & Economic Development, City of National City Attachment No. 2 November 28, 2017 Page 15 Based on these adjustments, KMA re -ran each developer's pro forma recalibrating estimates of contingency, developer fee, indirect costs, financing cost, and tax credit eligible basis. KMA held constant each developer's assumed permanent loan and tax credit underwriting assumptions, operating expense budget, and other sources of funds. The KMA adjusted pro formas are presented in Attachment B. The revised estimate of seller note for each developer are shown below: Estimate of Total Seller Note (1) KMA Adjusted Pro Formas BRIDGE CIC CHW MK Community Partners I. Sources of Funds Permanent Loan $25.0 M $39.1 M $33.6 M $39.3 M Tax Credits $31.8 M $35.5 M $41.6 M $31.3 M Developer Equity (2) $9.3 M $8.0 M $4.1 M $8.4 M Other $1.8 M $8.6 M $6.2 M $0.0 M Total Sources of Funds $67.9 M $91.0 M $85.5 M $79.0 M II. Development Costs ($102.0) M ($103.1) M ($96.7) M ($98.5) M III. Seller Note ($34.1 M) ($12.0) M ($11.2) M ($19.5) M (1) Figures shown are for Kimball and Morgan Towers combined. (2) Includes both deferred developer fee and General Partner equity contribution. The revised estimate of value to the Housing Authority based on the KMA adjusted pro formas are shown below: 17122ka) 16104.011.001 265 of 297 Mr. Alfredo Ybarra Housing & Economic Development, City of National City Attachment No. 2 November 28, 2017 Page 16 Estimate of Total Value to the Housing Authority (1) KMA Adjusted Pro Formas BRIDGE CIC CHW MK Community Partners I. Purchase Price $60.6 M $60.6 M $60.6 M $60.6 M II. (Less) Seller Note ($34.1 M) ($12.0) M ($11.2) M ($19.5) M III. Upfront Cash Proceeds to the Housing Authority $26.5 M $48.6 M $49.4 M $41.1 M IV. Present Value of Annual Contributions (2) $11.5 M $12.3 M $13.1 M $13.0 M V. Total Value to the Housing Authority $38.0 M $60.9 M $62.6 M $54.1 M (1) Figures shown are for Kimball and Morgan Towers combined. (2) Reflects present value of annual contributions to Nutrition Center, repayment of seller note, and other cash flow to the Housing Authority. Assumes discount rate of 8.0% for contributions toward Nutrition Center and 10% for repayment of Seller Note and/or cash flow to the Housing Authority. As shown above, the KMA adjusted pro formas resulted in increasing the estimate of total value to the HA for both BRIDGE and MK Community Partners, and decreased values to the Housing Authority for CIC and CHW. V. LIMITING CONDITIONS 1. Keyser Marston Associates, Inc. (KMA) has made extensive efforts to confirm the accuracy and timeliness of the information contained in this document. Such information was compiled from a variety of sources deemed to be reliable including state and local government, planning agencies, real estate brokers, and other third parties. Although KMA believes all information in this document is correct, it does not guarantee the accuracy of such and assumes no responsibility for inaccuracies in the information provided by third parties. Further, no guarantee is made as to the possible effect on development of current or future federal, state, or local legislation. 2. The accompanying projections and analyses are based on estimates and assumptions which were developed using currently available economic data, project specific data, and other relevant information. It is the nature of forecasting, however, that some assumptions may not materialize and unanticipated events and circumstances may occur. Such changes are likely to be material to the projections and conclusions herein and, if they occur, require review or revision of this document. attachments 17122ka1 16104.011.001 266 of 297 Attachment No. 2 KIMBALL AND MORGAN SENIOR TOWERS REQUEST FOR PROPOSALS CITY OF NATIONAL CITY KEYSER MARSTON ASSOCIATES, 267 of 297 Page 17 SUMMARY TABLE 1 SELECTION CRITERIA SCORING SHEET KIMBALL AND MORGAN TOWERS RFP CITY OF NATIONAL CITY Kimball 4% Tax Credits 1. Development Program Summary Morga, 4% Tax Credits Kimball 4% Tax Credits Morgan 4% Tax Credits a. The Project Proposal incorporates the necessary elements for efficient operation of an affordable housing complex and rehabilitation of the Towers. b. The Project Proposal assumes full property renovation and rehabilitation including energy efficient improvements, technology upgrades, upgraded building systems, and property/residential improvements. 20 Respondents were instructed to assume a rehabilitation cost estimate of $55,000 per unit. Actual scope of rehabilitation and corresponding budget have not yet been determined. 20 Respondents were instructed to assume a rehabilitation cost estimate of $55,000 per unit. Actual scope of rehabilitation and corresponding budget have not yet been determined. 20 Respondents were instructed to assume a rehabilitation cost estimate of $55,000 per unit. Actual scope of rehabilitation and corresponding budget have not yet been determined. 20 Respondents were instructed to assume a rehabilitation cost estimate of $55,000 per unit. Actual scope of rehabilitation and corresponding budget have not yet been determined. L6 Jo 89Z 2. Depth of Affordability a. The Project Proposal extends affordability covenants as long as feasible and the useful life of improvements for at least 20 years. b. The Project Proposal maintains deep levels of affordability for existing and future tenants. 20 Proposals extends affordability covenants and useful life of improvements; deep levels of affordability are maintained for existing and future tenants. 20 Proposals extends affordability covenants and useful life of improvements; deep levels of affordability are maintained for existing and future tenants. 20 Proposals extends affordability covenants and useful life of improvements; deep levels of affordability are maintained for existing and future tenants. 20 Proposals extends affordability covenants and useful life of improvements; deep levels of affordability are maintained for existing and future tenants. 3. Overall Project Feasibility a. The financial pro forma contains valid assumptions and estimates within reasonable range of industry standards. b. The Project Proposal demonstrates long-term economic sustainability. c. The Project Proposal provides for a financial return to the Housing Authority. 15 BRIDGE's operating budget and underwriting assumptions appear conservative; the KMA adjusted pro forma yields increased the financial return from $13.5 M to $19.0 M, still the lowest return to the Housing Authority. 15 BRIDGE'S operating budget and underwriting assumptions appear conservative; the KMA adjusted pro forma yields increased the financial return to the Housing Authority from $13.9 M to $19.0 M, still the lowest return to the Housing Authority. 25 CIC's financial proposal reflects the highest financial return to Housing Authority; however, CIC's pro forma assumptions appear overly optimistic; the KMA adjusted pro forma yields reduced financial return to Housing Authority from $34.5 M to $30.4 M. 25 CIC's financial proposal reflects the highest financial return to the Housing Authority; however, CIC's pro forma assumptions appear overly optimistic; KMA adjusted pro forma yields reduced financial return to Housing Authority from $35.5 M to $30.6 M. 4. Soundness of Financing Plan a. The financing plan is reasonable and achievable to enable p oject completion in a timely manner. b. The financing plan provides a realistic timeline for securing financing. c. The Development Team demonstrated successful experience with similar Financing Plans on comparable projects. 15 Funding sources proposed are conservative, not likely to delay timing. Timeline for completion of Project and securing financing appears reasonable. 15 Funding sources proposed are conservative, not likely to delay timing. Timeline for completion of Project and securing financing appears reasonable. 20 Funding sources proposed are reasonable. Timeline for completion of Project appears reasonable; delay in timeline may occur if unable to secure financing for various funding sources assumed at the levels proposed. 20 Funding sources proposed are reasonable. Timeline for completion of Project appears reasonable; delay in timeline may occur if unable to secure financing for various funding sources assumed at the levels proposed. TOTAL POINTS SCORED 100 70 70 85 85 'ON lUeWLPefy Prepared by: Keyser Marston Associates, Inc. Filename: National City\National City Developer Evaluation Matrix v3;11/28/2017;ema Page 18 SUMMARY TABLE 1 SELECTION CRITERIA SCORING SHEET KIMBALL AND MORGAN TOWERS RFP CITY OF NATIONAL CITY 1. Development Program Summary L6 Jo 69 2. Depth of Affordability 3. Overall Project Feasibility 4. Soundness of Financing Plan Maxi "m Score 20 20 35 25 Kimball 4% Tax Credits Morgan 9% Tax Credits Kimball 4% Tax Credits Morgan 4% Tax Credits a. The Project Proposal incorporates the necessary elements for efficient operation of an affordable housing complex and rehabilitation of the Towers. b. The Project Proposal assumes full property renovation and rehabilitation including energy efficient improvements, technology upgrades, upgraded building systems, and property/residential improvements. 20 Respondents were instructed to assume a rehabilitation cost estimate of $55,000 per unit. Actual scope of rehabilitation and corresponding budget have not yet been determined. 20 Respondents were instructed to assume a rehabilitation cost estimate of $55,000 per unit. Actual scope of rehabilitation and corresponding budget have not yet been determined. 20 Respondents were instructed to assume a rehabilitation cost estimate of $55,000 per unit. Actual scope of rehabilitation and corresponding budget have not yet been determined. 20 Respondents were instructed to assume a rehabilitation cost estimate of $55,000 per unit. Actual scope of rehabilitation and corresponding budget have not yet been determined. a. The Project Proposal extends affordability covenants as long as feasible and the useful life of improvements for at least 20 years. b. The Project Proposal maintains deep levels of affordability for existing and future tenants. 20 Proposals extends affordability covenants and useful life of improvements; deep levels of affordability are maintained for existing and future tenants. 20 Proposals extends affordability covenants and useful life of improvements; deep levels of affordability are maintained for existing and future tenants. 20 Proposals extends affordability covenants and useful life of improvements; deep levels of affordability are maintained for existing and future tenants. 20 Proposals extends affordability covenants and useful life of improvements; deep levels of affordability are maintained for existing and future tenants. a. The financial pro forma contains valid assumptions and estimates within reasonable range of industry standards. b. The Project Proposal demonstrates long-term economic sustainability. c. The Project Proposal provides for a financial return to the Housing Authority. 30 Financial pro forma assumptions generally reasonable; CHW's estimate of operating expenses appear overly optimistic; KMA adjusted pro forma yields reduced CHW's estimate of financial return from $29.7 M to $27.3 M. 30 Financial pro forma assumptions generally reasonable; CHW's estimate of operating expenses appear overly optimistic; KMA adjusted pro forma yields reduced CHW's estimate of financial return from $37.3 M to $35.2 M. 20 Development cost assumptions appear overly optimistic; KMA adjusted pro forma yields increased MK's estimate of financial return from $25.9 M to $27.3 M. 20 Development cost assumptions appear overly optimistic; KMA adjusted pro forma yields increased MK's estimate of financial return from $26.3 M to $27.3 M. a. The financing plan is reasonable and achievable to enable project completion in a timely manner. b. The financing plan provides a realistic timeline for securing financing. c. The Development Team demonstrated successful experience with similar Financing Plans on comparable projects. 20 Funding sources proposed are reasonable. Timeline for completion of Project appears reasonable; delay in timeline may occur if unable to secure financing at the levels proposed. 15 Funding sources proposed are reasonable. Timeline for completion of Project appears reasonable; delay in timeline may occur if unable to secure financing for various funding sources at the levels proposed; development may be delayed if need to compete for multiple rounds of 9% tax credits. 15 Funding sources proposed are conservative, not likely to delay timeline. Timeline for completion of Project appears optimistic. 15 Funding sources proposed are conservative, not likely to delay timeline. Timeline for completion of Project appears optimistic. 'ON lueWLPefy Prepared by: Keyser Marston Associates, Inc. Filename: National City\National City Developer Evaluation Matrix v3;11/28/2017;ema Page 19 KIMBALL AND MORGAN TOWERS COMBINED SUMMARY TABLE 2 DEVELOPER FINANCIAL PROPOSAL KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY BRIDGE Housing Chelsea Investment Corporation Community HousingWorks (CHW) MK Community Partners (RAHD Group) I. Developer Financial Proposal A. Ground Lease Term: 65 Years with two 10-year options 65 Years 99 years (including extensions) 99 years Payments: $475,000/year escalating at 2.5%/year $6.0 M pre -paid ground lease 50% of Residual Receipts after repayment of Seller Note $100/ year B. Acquisition Price $44.7 M $58.1 M $67.8 M (2) $38.5 M (before Seller Note) $148,000 per unit p $192,000 er unit p $224,000 per unit • The Housing Authority has option to repurchase improvements for $1.00 at end of C. Seller Note $28.0 M $6.4 M $14.1 M • No Seller Note $92,000 per unit $21,000 per unit $47,000 per unit D. Funding of Nutrition Center • Proposes ground lease payments be used for Nutrition Center • $475,000/year escalating at 2.5%/year • $475,000/year escalating at 3.5%/year • Paid by the Housing Authority from $38.5 M acquisition proceeds and/or the Housing Authority portion of project cash flow E. Annual Cash Flow to the Housing Authority • 50% of residual receipts to the Housing Authority beginning in Year 1 for repayment of Seller Note • 50% of residual receipts to the Housing Authority beginning in Year 1 for repayment of Seller Note • 50% of residual receipts to the Housing Authority beginning in Year 1 for repayment of Seller Note • • 20% of deferred developer fee payments to the Housing Authority 100% of cash flow after repayment of deferred developer fee II. Total Payments to the Housing Authority A. Upfront Cash Payment $16,761,000 $57,697,000 $53,659,000 $37,999,000 Per Unit $55,000 $190,000 $177,000 $125,000 B. Present Value of Annual Contributions Payments to Nutrition Center $8,800,000 (2) $8,800,000 (3) $10,303,000 (3) $0 (4) Payment to the Housing Authority Seller Note $1,801,000 (5)(6) $3,462,000 (5) $3,051,000 (5)(6) $0 Other Cash Flow to the Housing Authority $14 160 000 (7) Total Annual Contributions $10,601,000 $12,262,000 $13,354,000 $14,160,000 C. Total Value to the Housing Authority $27,362,000 $69,959,000 $67,013,000 $52,159,000 Per Unit $90,000 $231,000 $221,000 $172,000 (1) Includes transfer of tenant deposits. (2) Present value of ground lease payments at Year 1 assuming an 8.0% discount rate. BRIDGE Housing proposes ground lease payments be used to fund Nutrition Center operations. (3) Present value of annual Nutrition Center Services Fee at Year 1 assuming an 8.0% discount rate. (4) MK Community Partners proposes funding for the Nutrition Center be paid by the Housing Authority from $38.5 M acquisition proceeds and/or Housing Authority portion of project cash flow. (5) Present value of Seller Note payments at Year 1 assuming a 10.0% discount rate. (6) Includes present value of repayment of outstanding balance at Year 55. (7) Includes proposed allocation of 20% of deferred developer fee and 100% of project cash flow to the Housing Authority. Reflects net present value at Year 1 assuming a 10.0% discount rate. Z •0N TuaLuive}TV Prepared by: Keyser Marston Associates, Inc. Filename is\National City Developer Evaluation Matrix_v3;11/28/2017;Iag Page 20 SUMMARY TABLE 3 TOTAL PAYMENTS TO CITY KIMBALL AND MORGAN TOWERS RFP CITY OF NATIONAL CITY KIMBALL AND MORGAN TOWERS COMBINED KMA ADJUSTED PRO FORMAS Total Payments to Housing Authority BRIDGE Housing Chelsea Investment Corporation Community ousingWorks (CHW) MK Community Partners RAHD Group) A. Upfront Cash Payment $26,481,000 $48,579,000 $49,418,000 $41,124,000 Per Unit $87,000 $160,000 $163,000 $136,000 B. Present Value of Annual Contributions Payments to Nutrition Center $8,800,000 (1) $8,800,000 (2) $10,303,000 (2) $0 (3) Payment to Housing Authority Seller Note $2,746,000 (4)(s) $3,535,000 (4) $2,839,000 (4)(5) $0 Other Cash Flow to Housing Authority L $13 014 000 (6) Total Annual Contributions $11,546,000 $12,335,000 $13,142,000 $13,014,000 C. Total Value to Housing Authority $38,027,000 $60,914,000 $62,560,000 $54,138,000 Per Unit $126,000 $201,000 $206,000 $179,000 (1) Present value of ground lease payments at Year 1 assuming an 8.0% discount rate. BRIDGE Housing proposes ground lease payments be used to fund Nutrition Center operations. (2) Present value of annual Nutrition Center Services Fee at Year 1 assuming an 8.0% discount rate. (3) MK Community Partners proposes funding for the Nutrition Center be paid from acquisition proceeds and/or Housing Authority portion of project cash flow. (4) Present value of Seller Note payments at Year 1 assuming a 10.0% discount rate. (5) Includes present value of repayment of outstanding balance at Year 55. (6) Includes proposed allocation of 20% of deferred developer fee and 100% of project cash flow to Housing Authority. Reflects net present value at Year 1 assuming a 10.0% discount rate. Z •0N TuaLuive}TV Prepared by: Keyser Marston Associates, Inc. Filename is\National City Developer Evaluation Matrix_v3_Adjusted Pro formas;11/28/2017;Iag Page 21 Attachment No. 2 Attachment A Kimball / Morgan RFP Developer Pro Formas 272 of 297 Page 22 DEVELOPER PRO FORMAS L6 Jo ELZ TABLE A-1 DEVELOPMENT COSTS KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY BRIDGE Housing Kimball 4% Tax Credits Morgan 4% Tax Credits Chelsea Investment Corporation Kimball 4% Tax Credits Morgan 4% Tax Credits Number of Units One Bedroom Manager's Unit Total Number of Units 150 2 152 Units Units Units 150 1 151 Units Units Units 150 2 152 Units Units Units 150 1 151 Units Units Units Total f�1 Per Unit Total 111 Per Unit Total (1) Per Unit Total Ili Per Unit I. Direct Costs On-Sites/Off-Sites, Remediation, Parking $0 incl below $0 incl below $0 $0 $0 $0 Building Rehabilitation - Residential $8,360,000 $55,000 $8,305,000 $55,000 $10,032,000 $66,000 $9,966,000 $66,000 Building Rehabilitation - Nutrition Center $0 $0 $0 Incl. above $0 $0 $0 Incl. above Amenities/FF&E $100,000 $658 $150,000 $993 $400,000 $2,632 $337,500 $2,235 Contingency $1,254,000 15% $1,245,750 15% $1,003,200 10% $996,600 10% Total Direct Costs $9,714,000 $63,908 $9,700,750 $64,243 $11,435,200 $75,232 $11,300,100 $74,835 II. Indirect Costs Indirect Costs $2,332,000 $15,342 $2,334,500 $15,460 $2,315,240 $15,232 $2,091,208 $13,849 Developer Fee $5,050,575 $33,227 $5,228,327 $34,625 $6,588,200 $43,343 $6,725,217 $44,538 Total Indirect Costs $7,382,575 $48,570 $7,562,827 $50,085 $8,903,440 $58,575 $8,816,425 $58,387 III. Financing Costs $2,525,760 $16,617 $2,577,828 $17,072 $4,369,675 $28,748 $3,666,672 $24,283 IV. Total Development Costs Excluding Acquisition $19,622,335 $129,094 $19,841,405 $131,400 $24,708,315 $162,555 $23,783,197 $157,505 V. Acquisition Costs Land $1,087,720 $7,156 $1,148,810 $7,608 $3,000,000 $19,737 $3,000,000 $19,868 Building $20,666,680 $135,965 $21,827,390 $144,552 $28,400,000 $186,842 $29,700,000 $196,689 Total Acquisition Costs $21,754,400 $143,121 $22,976,200 $152,160 $31,400,000 $206,579 $32,700,000 $216,556 VI. Total Development Costs Incl. Acquisition $41,376,735 $272,215 $42,817,605 $283,560 $56,108,315 $369,134 $56,483,197 $374,061 Or Say (Rounded) $41,377,000 $42,818,000 $56,108,000 $56,483,000 (1) Includes the payment of prevailing wages. (2) Excludes the payment of prevailing wages. Z •oN TuaLuive}1y Prepared by: Keyser Marston Associates, Inc. Filename: National City\National City Developer Evaluation Matrix_v3\11/28/2017; ema Page 23 DEVELOPER PRO FORMAS TABLE A-1 DEVELOPMENT COSTS KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY Community HousingWorks Kimball 4% Tax Credits Morgan 9% Tax Credits MK Community Partners Kimball 4% Tax Credits Morgan 4% Tax Credits Number of Units One Bedroom Manager's Unit Total Number of Units 150 2 152 Units Units Units 150 1 151 Units Units Units 150 2 152 Units Units Units 150 1 151 Units Units Units Total IZI Per Unit Total (2) Per Unit Total (1) Per Unit Total (1) Per Unit I. Direct Costs On-Sites/Off-Sites, Remediation, Parking $467,834 $3,078 $467,834 $3,098 $275,000 $1,809 $275,000 $1,821 Building Rehabilitation - Residential $7,132,167 $46,922 $7,082,166 $46,902 $7,932,500 $52,188 $7,932,500 $52,533 Building Rehabilitation - Nutrition Center $0 $0 $0 $0 $0 $0 $500,000 $3,311 Amenities/FF&E $75,000 $493 $75,000 $497 $125,000 $822 $125,000 $828 Contingency $760,000 10% $755,000 10% $777,256 9% $777,256 9% Total Direct Costs $8,435,001 $55,493 $8,380,000 $55,497 $9,109,756 $59,933 $9,609,756 $63,641 II. Indirect Costs Indirect Costs $1,477,836 $9,723 $1,454,179 $9,630 $2,459,222 $16,179 $2,459,222 $16,286 Developer Fee $6,606,733 $43,465 $2,000,000 $13,245 $4,661,247 $30,666 $4,661,247 $30,869 Total Indirect Costs $8,084,569 $53,188 $3,454,179 $22,875 $7,120,469 $46,845 $7,120,469 $47,155 III. Financing Costs $2,675,427 $17,601 $2,620,262 $17,353 $1,007,286 $6,627 $1,007,286 $6,671 IV. Total Development Costs Excluding Acquisition $19,194,997 $126,283 $14,454,441 $95,725 $17,237,511 $113,405 $17,737,511 $117,467 V. Acquisition Costs Land $0 $0 $0 $0 $0 $0 $0 $0 Building $33,100,000 $217,763 $34,700,000 $229,801 $19,250,000 $126,645 $19,250,000 $127,483 Total Acquisition Costs $33,100,000 $217,763 $34,700,000 $229,801 $19,250,000 $126,645 $19,250,000 $127,483 I VI. Total Development Costs Incl. Acquisition $52,294,997 $344,046 $49,154,441 $325,526 $36,487,511 $240,049 $36,987,511 $244,950 Or Say (Rounded) $52,295,000 $49,154,000 $36,488,000 $36,988,000 (1) Includes the payment of prevailing wages. (2) Excludes the payment of prevailing wages. Z •oN TuaLuive}TV Prepared by: Keyser Marston Associates, Inc. Filename: National City\National City Developer Evaluation Matrix_v3\11/28/2017; ema Page 24 DEVELOPER PRO FORMAS TABLE A-2 NET OPERATING INCOME KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY Kimball Tower - 150 tenant based vouchers Morgan Tower - 148 project based vouchers (expiring in 2018) Fair Market Rent Payment Standard Voucher 1 Bedroom $1,342 $1,235 BRIDGE Housing 4 Chelsea Investment Corporation Kimball 4% Tax Credits Morgan 4% Tax Credits Kimball 4% Tax Credits Morgan II . 4% Tax Credits I. II. III. IV. V. Residential Income 30% AMI 50%AMI N/A Manager Total Residential Income Add: Other Income Gross Scheduled Income (Less) Vacancy Effective Gross Income Operating Expenses (Less) Operating Expenses (Less) Service Amenities (Less) Other Total Operating Expenses Net Operating Income (Less) Services Fee to Nutrition Center # Units Monthly Rent (1) Annual GSI (5) # Units Monthly Rent Annual GSI (5) # Units Monthly Rent (2) Annual GSI # Units Monthly Rent (2) Annual GSI 0 $0 150 $1,194 0 $0 2 152 $1,178 $4 /Unit/Month 5.0% of GSI $6,288 /Unit/Year $362 /Unit/Year $448 /Unit/Year $0 $2,149,200 $0 $2,149,200 $7,029 $2,156,229 ($107,8111 0 $0 150 $1,194 (1) 0 $0 1 151 $1,186 $4 /Unit/Month 5.0% of GSI $6,336 /Unit/Year $364 /Unit/Year $449 /Unit/Year $0 $2,149,200 $0 $2,149,200 $7,405 $2,156,605 ($107,830) 150 $1,500 0 $0 0 $0 2 L3 152 $1,480 $4 /Unit/Month 5.0% of GSI $4,911 /Unit/Year $342 /Unit/Year $474 /Unit/Year $2,700,000 $0 $0 $2,700,000 $7,296 150 $1,500 0 $0 0 $0 1 151 $1,490 $4 /Unit/Month 5.0% of GSI $4,900 /Unit/Year $344 /Unit/Year $475 /Unit/Year $2,700,000 $0 $0 $2,700,000 $7,248 $2,707,296 ($135,3651 $2,707,248 ($135,3621 $2,048,418 ($955,800) ($55,000) ($68,100) $2,048,775 ($956,700) ($55,000) ($67,800) $2,571,931 ($746,453) ($52,000) ($72,100) $2,571,886 ($739,874) ($52,000) ($71,800) $7,098 /Unit/Year 53% or EGI ($1,078,900) $969,518 ($237,500) $7,149 /Unit/Year 53% or EGI ($1,079,500) $969,275 ($237,500) $5,730 /Unit/Year 34% or EGI ($870,553) $1,701,378 ($237,500) $5,720 /Unit/Year 34% or EGI ($863,674) $1,708,212 ($237,500) VI. NOI After Nutrition Center Fees Or Say (Rounded) $732,018 $732,000 $731,775 $732,000 $1,463,878 $1,464,000 $1,470,712 $1,471,000 (1) Reflects payment standard voucher less utility allowance ($41). (2) Reflects post renovated Fair Market Rents based on value analysis prepared by Lea & Company, August 25, 2017. (4) Reflects fair market rent (gross). (5) Reflects ground lease payment proposed for use toward Nutrition Center. Z •0N TuaLuive}TV Prepared by: Keyser Marston Associates, Inc. Filename: National City\National City Developer Evaluation Matrix_v3\11/28/2017; ema Page 25 DEVELOPER PRO FORMAS TABLE A-2 NET OPERATING INCOME KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY Kimball Tower - 150tenant based vouchers Morgan Tower -148 project based vouchers (expiring in 2018) Fair Market Rent Payment Standard Voucher 1 Bedroom $1,342 $1,235 Community HousingWorks Kimball 4% Tax Credits Morgan 9% Tax Credits MK Community Partners Kimball 4% Tax Credits Morgan 4% Tax Credits I. Residential Income # Units Monthly Rent Annual GSI # Units Monthly Rent Annual GSI # Units Monthly Rent Annual GSI # Units Monthly Rent Annual GSI 30% AMI 75 $1,301 (3) $1,170,900 30 $1,342 (4) $483,120 0 $0 $0 2 $811 $19,464 50% AMI 75 $1,301 (3) $1,170,900 105 $1,342 (4) $1,690,920 150 $1,342 (4) $2,415,600 148 $1,342 (4) $2,383,392 N/A 0 $0 $0 15 $1,342 (4) $241,560 0 $0 $0 0 $0 $0 Manager 2 1 Li 2 $1,342 (4) $32,208 1 $811 $9,732 Total Residential Income 152 $1,284 $2,341,800 151 $1,333 $2,415,600 152 $1,342 $2,447,808 151 $1,331 $2,412,588 Add: Other Income $8 /Unit/Month $15,300 $8 /Unit/Month $15,300 $4 /Unit/Month $7,025 $4 /Unit/Month $7,030 II. Gross Scheduled Income $2,357,100 $2,430,900 $2,454,833 $2,419,618 (Less) Vacancy 5.0% of GSI ($117,0901 5.0% of GSI ($120,780) 4.9% of GSI ($120 7801 5.0% of GSI ($120 1431 Effective Gross Income $2,240,010 $2,310,120 $2,334,053 $2,299,475 III. Operating Expenses (Less) Operating Expenses $4,600 /Unit/Year ($699,200) $4,600 /Unit/Year ($694,600) $5,364 /Unit/Year ($815,372) $5,294 /Unit/Year ($799,385) (Less) Service Amenities $586 /Unit/Year ($89,000) $589 /Unit/Year ($89,000) $103 /Unit/Year ($15,607) $101 /Unit/Year ($15,301) (Less) Other $387 /Unit/Year ($58,772) $388 /Unit/Year ($58,559) $483 /Unit/Year ($73,416) $483 /Unit/Year ($72,933) Total Operating Expenses $5,570 /Unit/Year ($846,972) $5,580 /Unit/Year ($842,159) $5,950 /Unit/Year ($904,395) $5,880 /Unit/Year ($887,619) 38% or EGI 36% or EGI 39% or EGI 39% or EGI IV. Net Operating Income $1,393,038 $1,467,961 $1,429,658 $1,411,856 V. (Less) Services Fee to Nutrition Center ($475,000) VI. NOI After Nutrition Center Fees $1,393,038 $992,961 $1,429,658 $1,411,856 Or Say (Rounded) $1,393,000 $993,000 $1,430,000 $1,412,000 (1) Reflects payment standard voucher less utility allowance ($41) (2) Reflects post renovated Fair Market Rents based on value anal lysis prepared by Lea & Company, August 25, 2017. (4) Reflects fair market rent (gross). (5) Reflects ground lease payment proposed for use toward Nutrition Center. Z •0N TuaLuive}TV Prepared by: Keyser Marston Associates, Inc. Filename: National City\National City Developer Evaluation Matrix_v3\11/28/2017; ema Page 26 DEVELOPER PRO FORMAS TABLE A-3 SELLER NOTE KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY BRIDGE Housing Kimball 4% Tax Credits Morgan 4% Tax Credits Chelsea Investment Corporation Kimball 4% Tax Credits Morgan 4% Tax Credits I. Sources of Funds Total Per Unit Total Per Unit Total Per Unit Total Per Unit Supportable Permanent Loan $9,987,100 $65,705 $9,983,800 $66,118 $25,381,000 $166,980 $25,499,000 $168,868 Tax Credit Equity Investment $13,353,920 $87,855 $13,777,728 $91,243 $19,068,405 $125,450 $19,374,747 $128,310 Deferred Developer Fee $0 $0 $0 $0 $2,365,000 $15,559 $2,360,000 $15,629 General Partner Equity Contribution $3,550,575 $23,359 $3,728,327 $24,691 $1,724,748 $11,347 $1,864,444 $12,347 Income During Construction $367,000 $2,414 $367,000 $2,430 $1,548,279 $10,186 $1,554,649 $10,296 Seller Note - Accrued Deferred Interest $539,324 $3,548 $570,952 $3,781 $0 $0 $0 $0 Existing Reserves $0 $0 $0 $0 $1,352,133 $8,896 $743,495 $4,924 AHP $0 $0 $0 $0 $1,500,000 $9,868 $1,500,000 $9,934 Soft Loan Interest $0 $0 $0 $0 $168,750 $1,110 $183,862 $1,218 Refunds Total Sources of Fund $27,797,919 $182,881 $28,427,807 $188,264 $53,108,315 $349,397 $53,080,197 $351,524 Or Say (Rounded) $27,798,000 $28,428,000 $53,108,000 $53,080,000 II. Development Costs ($41,377,000) ($272,217) ($42,818,000) ($283,563) ($56,108,000) ($369,132) ($56,483,000) ($374,060) III. Seller Note ($13,579,000) ($89,336) ($14,390,000) ($95,298) ($3,000,000) ($19,737) ($3,403,000) ($22,536) Z •0N TuaLuive}TV Prepared by: Keyser Marston Associates, Inc. Filename i:\National City Developer Evaluation Matrix_v3;11/28/2017;Iag Page 27 DEVELOPER PRO FORMAS TABLE A-3 SELLER NOTE KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY Community HousingWorks Kimball 4% Tax Credits Morgan 9% Tax Credits MK Community Partners Kimball 4% Tax Credits Morgan 4% Tax Credits I. Sources of Funds Total Per Unit Total Per Unit Total Per Unit Total Per Unit Supportable Permanent Loan $21,330,000 $140,329 $13,220,000 $87,550 $20,949,914 $137,828 $20,812,086 $137,828 Tax Credit Equity Investment $18,069,795 $118,880 $24,335,215 $161,160 $12,563,031 $82,652 $12,563,031 $83,199 Deferred Developer Fee $0 $0 $0 $0 $3,043,480 $20,023 $3,043,480 $20,155 General Partner Equity Contribution $4,106,733 $27,018 $0 $0 $0 $0 $0 $0 Income During Construction $1,796,480 $11,819 $1,254,501 $8,308 $0 $0 $0 $0 Seller Note - Accrued Deferred Interest $0 $0 $0 $0 $0 $0 $0 $0 Existing Reserves $0 $0 $0 $0 $0 $0 $0 $0 AHP $1,500,000 $9,868 $1,500,000 $9,934 $0 $0 $0 $0 Soft Loan Interest $0 $0 $0 $0 $0 $0 $0 $0 Refunds $100,000 $658 $95,442 $632 Total Sources of Fund $46,903,008 $308,572 $40,405,158 $267,584 $36,556,425 $240,503 $36,418,597 $241,183 Or Say (Rounded) $46,903,000 $40,405,000 $36,556,000 $36,419,000 II. Development Costs ($52,295,000) ($344,046) ($49,154,000) ($325,523) ($36,488,000) ($240,053) ($36,988,000) ($244,954) III. Seller Note ($5,392,000) ($35,474) ($8,749,000) ($57,940) $68,000 $447 ($569,000) ($3,768) Z •0N TuaLuive}TV Prepared by: Keyser Marston Associates, Inc. Filename i:\National City Developer Evaluation Matrix_v3;11/28/2017;Iag Page 28 DEVELOPER PRO FORMAS TABLE A-4 CASH PROCEEDS TO HOUSING AUTHORITY KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY BRIDGE Housing Kimball Morgan Total I. Purchase Price $21,754,000 $22,976,000 $44,730,000 II. (Less) Seller Note ($13,579,000) ($14,390,000) ($27,969,000) III. (Less) Existing Loan Balance $0 0.) IV. Cash Proceeds to Housing Authority $8,175,000 $8,586,000 $16,761,000 Per Unit $54,000 $57,000 $55,000 (1) Adjusted by KMA to exclude BRIDGE's proposed repayment of existing loan balance estimated at $234,000. (2) Adjusted by KMA to exclude CHW's proposed repayment of existing loan balance estimated at $726,000. Chelsea Investment Corporation Kimball Morgan $31,400,000 $32,700,000 $64,100,000 ($3,000,000) ($3,403,000) ($6,403,000) $28,400,000 $29,297,000 $57,697,000 $187,000 $194,000 $190,000 Z •0N TuaLuive}TV Prepared by: Keyser Marston Associates, Inc. Filename is\National City Developer Evaluation Matrix_v3;11/28/2017;lag Page 29 DEVELOPER PRO FORMAS TABLE A-4 CASH PROCEEDS TO HOUSING AUTHORITY KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY CHW Kimball Morgan Total I. Purchase Price $33,100,000 $34,700,000 $67,800,000 II. (Less) Seller Note ($5,392,000) ($8,749,000) ($14,141,000) III. (Less) Existing Loan Balance $0 (2) IV. Cash Proceeds to Housing Authority $27,708,000 $25,951,000 $53,659,000 Per Unit $182,000 $172,000 $177,000 (1) Adjusted by KMA to exclude BRIDGE's proposed's proposed repayment of existing loan balance estimated at $234,000. (2) Adjusted by KMA to exclude CHW's proposed re proposed repayment of existing loan balance estimated at $726,000. Morgan Kimball Community (RAHD Group) Partners Kimball Morgan Total $19,250,000 $19,250,000 $38,500,000 $68,000 ($569,000) ($501,000) $19,318,000 $18,681,000 $37,999,000 $127,000 $124,000 $125,000 Z •0N TuaLuive}TV Prepared by: Keyser Marston Associates, Inc. Filename is\National City Developer Evaluation Matrix_v3;11/28/2017;lag Page 30 Attachment No. 2 Attachment B Kimball / Morgan RFP KMA Adjusted Pro Formas KMA Adjustments: Acquisition Costs $200,000 /Unit Buidling Rehabilitation $55,000 /Unit Monthly Rent $1,301 281 of 297 Page 31 KMA ADJUSTED PRO FORMAS TABLE B-1 DEVELOPMENT COSTS KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY BRIDGE Housing Kimball 4% Tax Credits Morgan 4% Tax Credits Chelsea Investment Corporation Kimball 4% Tax Credits Morgan 4% Tax Credits Number of Units One Bedroom Manager's Unit Total Number of Units 150 2 152 Units Units Units 150 1 151 Units Units Units 150 2 152 Units Units Units 150 1 151 Units Units Units Total Per Unit Total Per Unit Total Per Unit Total Per Unit I. Direct Costs (.) On-Sites/Off-Sites, Remediation, Parking $0 $0 $0 $0 $0 $0 $0 $0 Building Rehabilitation - Residential $8,360,000 $55,000 $8,305,000 $55,000 $8,360,000 $55,000 $8,305,000 $55,000 Building Rehabilitation - Nutrition Center $0 $0 $0 $0 $0 $0 $0 $0 Amenities/FF&E $100,000 $658 $150,000 $993 $400,000 $2,632 $338,000 $2,238 Contingency $1 254,000 15% $1 246 000 15% $842 000 10% $836,000 10% Total Direct Costs $9,714,000 $63,908 $9,701,000 $64,245 $9,602,000 $63,171 $9,479,000 $62,775 II. Indirect Costs Indirect Costs $2,332,000 $15,342 $2,329,000 $15,424 $1,944,000 $12,789 $1,754,000 $11,616 Developer Fee $6,170,000 $40,592 $6,140,000 $40,662 $6,259,000 $41,178 $6,725,000 $44,536 Total Indirect Costs $8,502,000 $55,934 $8,469,000 $56,086 $8,203,000 $53,967 $8,479,000 $56,152 III. Financing Costs $2,526,000 $16,618 $2,522,000 $16,702 $3,669,000 $24,138 $3,076,000 $20,371 IV. Total Development Costs Excluding Acquisition $20,742,000 $136,461 $20,692,000 $137,033 $21,474,000 $141,276 $21,034,000 $139,298 V. Acquisition Costs Land $3,040,000 $20,000 $3,020,000 $20,000 $3,040,000 $20,000 $3,020,000 $20,000 Building $27,360,000 $180,000 $27,180,000 $180,000 $27,360,000 $180,000 $27,180,000 $180,000 Total Acquisition Costs $30,400,000 $200,000 $30,200,000 $200,000 $30,400,000 $200,000 $30,200,000 $200,000 VI. Total Development Costs Incl. Acquisition $51,142,000 $336,000 $50,892,000 $337,000 $51,874,000 $341,000 $51,234,000 $339,000 (1) Includes the payment of prevailing wages. Z •oN TU9WL PTV Prepared by: Keyser Marston Associates, Inc. Filename: National City\National City Developer Evaluation Matrix_v3_Adjusted Pro formas\11/28/2017; ema Page 32 KMA ADJUSTED PRO FORMAS TABLE B-1 DEVELOPMENT COSTS KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY Community HousingWorks Kimball 4% Tax Credits Morgan 9% Tax Credits MK Community Partners Kimball 4% Tax Credits Morgan 4% Tax Credits Number of Units One Bedroom Manager's Unit Total Number of Units 150 2 152 Units Units Units 150 1 151 Units Units Units 150 2 152 Units Units Units 150 1 151 Units Units Units Total Per Unit Total Per Unit Total Per Unit Total Per Unit I. Direct Costs (.) On-Sites/Off-Sites, Remediation, Parking $0 $0 $0 $0 $0 $0 $0 $0 Building Rehabilitation - Residential $8,360,000 $55,000 $8,305,000 $55,000 $8,360,000 $55,000 $8,305,000 $55,000 Building Rehabilitation - Nutrition Center $0 $0 $0 $0 $0 $0 $500,000 $3,311 Amenities/FF&E $75,000 $493 $75,000 $497 $125,000 $822 $125,000 $828 Contingency $835,000 10% $830,000 10% $791,000 9% $786,000 9% Total Direct Costs $9,270,000 $60,987 $9,210,000 $60,993 $9,276,000 $61,026 $9,716,000 $64,344 II. Indirect Costs Indirect Costs $1,624,000 $10,684 $1,598,000 $10,583 $2,504,000 $16,474 $2,486,000 $16,464 Developer Fee $6,604,000 $43,447 $2,000,000 $13,245 $5,928,000 $39,000 $5,958,000 $39,457 Total Indirect Costs $8,228,000 $54,132 $3,598,000 $23,828 $8,432,000 $55,474 $8,444,000 $55,921 III. Financing Costs $2,940,000 $19,342 $2,880,000 $19,073 $1,026,000 $6,750 $1,018,000 $6,742 IV. Total Development Costs Excluding Acquisition $20,438,000 $134,461 $15,688,000 $103,894 $18,734,000 $123,250 $19,178,000 $127,007 V. Acquisition Costs Land $3,040,000 $20,000 $3,020,000 $20,000 $3,040,000 $20,000 $3,020,000 $20,000 Building $27,360,000 $180,000 $27,180,000 $180,000 $27,360,000 $180,000 $27,180,000 $180,000 Total Acquisition Costs $30,400,000 $200,000 $30,200,000 $200,000 $30,400,000 $200,000 $30,200,000 $200,000 VI. Total Development Costs Incl. Acquisition $50,838,000 $334,000 $45,888,000 $304,000 $49,134,000 $323,000 $49,378,000 $327,000 (1) Includes the payment of prevailing wages. Z •oN TU9WL PTV Prepared by: Keyser Marston Associates, Inc. Filename: National City\National City Developer Evaluation Matrix_v3_Adjusted Pro formas\11/28/2017; ema Page 33 KMA ADJUSTED PRO FORMAS TABLE B-2 NET OPERATING INCOME KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY Kimball Tower - 150 tenant based vouchers Morgan Tower- 148 project based vouchers (expiring in 2018) Fair Market Rent Payment Standard Voucher 1 Bedroom $1,342 $1,235 Kimball 4% Tax Credits Morgan 4% Tax Credits Kimball 4% Tax Credits WI Morgan 4% Tax Credits ■ I. Residential Income (1) 30%AMI 50% AMI N/A Manager Total Residential Income Add: Other Income II. Gross Scheduled Income (Less) Vacancy Effective Gross Income III. Operating Expenses (Less) Operating Expenses (Less) Service Amenities (Less) Other Total Operating Expenses IV. Net Operating Income V. (Less) Services Fee to Nutrition Center # Units Monthly Rent Annual GSI # Units Monthly Rent Annual GSI # Units Monthly Rent Annual GSI # Units Monthly Rent Annual GSI 0 $0 $0 150 $1,301 $2,341,800 0 $0 $0 2 152 $1,284 $2,341,800 $4 /Unit/Month $7,029 0 $0 $0 150 $1,301 $2,341,800 0 $0 $0 1 151 $1,292 $2,341,800 $4 /Unit/Month $7,405 150 $1,301 $2,341,800 0 $0 $0 0 $0 $0 2 152 $1,284 $2,341,800 $4 /Unit/Month $7,296 150 $1,301 $2,341,800 0 $0 $0 0 $0 $0 1 151 $1,292 $2,341,800 $4 /Unit/Month $7,248 $2,348,829 5.0% of GSI ($117,441) $2,349,205 5.0% of GSI ($117,460) $2,349,096 5.0% of GSI ($117,455) $2,349,048 5.0% of GSI ($117 452) $2,231,388 $6,288 /Unit/Year ($955,800) $362 /Unit/Year ($55,000) $448 /Unit/Year ($68,100) $2,231,745 $6,336 /Unit/Year ($956,700) $364 /Unit/Year ($55,000) $449 /Unit/Year ($67,800) $2,231,641 $4,911 /Unit/Year ($746,453) $342 /Unit/Year ($52,000) $474 /Unit/Year ($72,100) $2,231,596 $4,900 /Unit/Year ($739,874) $344 /Unit/Year ($52,000) $475 /Unit/Year ($71,800) $7,098 /Unit/Year ($1,078,900) 48% or EGI $1,152,488 ($237,500) (5) $7,149 /Unit/Year ($1,079,500) 48% or EGI $1,152,245 ($237,500) (5) $5,730 /Unit/Year ($870,553) 39% or EGI $1,361,088 ($237,500) $5,720 /Unit/Year ($863,674) 39% or EGI $1,367,922 ($237,500) VI. NOI After Nutrition Center Fees Or Say (Rounded) $914,988 $915,000 $914,745 $915,000 $1,123,588 $1,124,000 $1,130,422 $1,130,000 (1) Reflects fair market rent less utility allowance ($41). (2) Reflects ground lease payment proposed for use toward Nutrition Center. (3) Reflects ground lease payment proposed for use toward Nutrition Center. Z •0N TuaLuive}TV Prepared by: Keyser Marston Associates, Inc. Filename: National City\National City Developer Evaluation Matrix_v3_Adjusted Pro formas\11/28/2017; ema Page 34 KMA ADJUSTED PRO FORMAS TABLE B-2 NET OPERATING INCOME KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY Kimball Tower - 150 tenant based vouchers Morgan Tower - 148 project based vouchers (expiring in 2018) Fair Market Rent Payment Standard Voucher 1 Bedroom $1,342 $1,235 Kimball 4% Tax Credits Community HousingWorks Morgan 9% Tax Credits MK Communiyt Partners Kimball 4% Tax Credits Morgan 4% Tax Credits I. Residential Income (1) 30% AMI 50% AMI N/A Manager Total Residential Income Add: Other Income II. Gross Scheduled Income (Less) Vacancy Effective Gross Income III. Operating Expenses (Less) Operating Expenses (Less) Service Amenities (Less) Other Total Operating Expenses IV. Net Operating Income V. (Less) Services Fee to Nutrition Center # Units Monthly Rent Annual GSI # Units Monthly Rent Annual GSI # Units Monthly Rent Annual GSI # Units Monthly Rent Annual GSI 75 $1,301 $1,170,900 75 $1,301 $1,170,900 0 $0 $0 2 152 $1,284 $2,341,800 $8 /Unit/Month $15,300 30 $1,301 $468,360 105 $1,301 $1,639,260 15 $1,301 $234,180 1 151 $1,292 $2,341,800 $8 /Unit/Month $15,300 0 $0 $0 150 $1,301 $2,341,800 0 $0 $0 2 g g 152 $1,284 $2,341,800 $4 /Unit/Month $7,025 2 $1,301 $31,224 148 $1,301 $2,310,576 0 $0 $0 1 g g 151 $1,292 $2,341,800 $4 /Unit/Month $7,030 $2,357,100 5.0% of GSI ($117,090) $2,357,100 5.0% of GSI ($117 8551 $2,348,825 5.0% of GSI ($117,4411 $2,348,830 5.0% of GSI ($117,442) $2,240,010 $4,600 /Unit/Year ($699,200) $586 /Unit/Year ($89,000) $387 /Unit/Year ($58,772) $2,239,245 $4,600 /Unit/Year ($694,600) $589 /Unit/Year ($89,000) $388 /Unit/Year ($58,559) $2,231,384 $5,364 /Unit/Year ($815,372) $103 /Unit/Year ($15,607) $483 /Unit/Year ($73,416) $2,231,389 $5,294 /Unit/Year ($799,385) $101 /Unit/Year ($15,301) $483 /Unit/Year ($72,933) $5,570 /Unit/Year ($846,972) 38% or EGI $1,393,038 $5,580 /Unit/Year ($842,159) 38% or EGI $1,397,086 ($475,000) $5,950 /Unit/Year ($904,395) 41% or EGI $1,326,989 $5,880 /Unit/Year ($887,619) 40% or EGI $1,343,770 Li VI. NOI After Nutrition Center Fees Or Say (Rounded) $1,393,038 $1,393,000 $922,086 $922,000 $1,326,989 $1,327,000 $1,343,770 $1,344,000 (1) Reflects fair market rent less utility allowance ($41). (2) Reflects ground lease payment proposed for use towa rd Nutrition Center. (3) Reflects ground lease payment proposed for use toward Nutrition Center. Z •0N TuaLuive}TV Prepared by: Keyser Marston Associates, Inc. Filename: National City\National City Developer Evaluation Matrix_v3_Adjusted Pro formas\11/28/2017; ema Page 35 KMA ADJUSTED PRO FORMAS TABLE B-3 SELLER NOTE KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY BRIDGE Housing Kimball 4% Tax Credits Morgan 4% Tax Credits Chelsea Investment Corporation Kimball 4% Tax Credits Morgan 4% Tax Credits I. Sources of Funds Total Per Unit Total Per Unit Total Per Unit Total Per Unit Supportable Permanent Loan $12,483,000 $82,125 $12,480,000 $82,649 $19,481,000 $128,164 $19,599,000 $129,795 Tax Credit Equity Investment $15,938,000 $104,855 $15,860,000 $105,033 $17,846,000 $117,408 $17,626,000 $116,728 Deferred Developer Fee $0 $0 $0 $0 $1,686,000 $11,092 $1,687,000 $11,172 General Partner Equity Contribution $4,670,000 $30,724 $4,640,000 $30,728 $2,074,000 $13,645 $2,537,000 $16,801 Income During Construction $367,000 $2,414 $367,000 $2,430 $1,548,279 $10,186 $1,554,649 $10,296 Seller Note - Accrued Deferred Interest $539,324 $3,548 $570,952 $3,781 $0 $0 $0 $0 Existing Reserves $0 $0 $0 $0 $1,352,133 $8,896 $743,495 $4,924 AHP $0 $0 $0 $0 $1,500,000 $9,868 $1,500,000 $9,934 Soft Loan Interest $0 $0 $0 $0 $168,750 $1,110 $183,862 $1,218 Refunds Total Sources of Fund $33,997,324 $223,667 $33,917,952 $224,622 $45,656,162 $300,369 $45,431,006 $300,868 Or Say (Rounded) $33,997,000 $33,918,000 $45,656,000 $45,431,000 II. Development Costs ($51,142,000) ($336,461) ($50,892,000) ($337,033) ($51,874,000) ($341,276) ($51,234,000) ($339,298) III. Seller Note ($17,145,000) ($112,796) ($16,974,000) ($112,411) ($6,218,000) ($40,908) ($5,803,000) ($38,430) Z •0N TuaLuive}TV Prepared by: Keyser Marston Associates, Inc. Filename i:\National City Developer Evaluation Matrix_v3_Adjusted Pro formas;11/28/2017;lag Page 36 KMA ADJUSTED PRO FORMAS TABLE B-3 SELLER NOTE KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY Community HousingWorks 4% Tax Credits 9% Tax Credits MK Community Partners 4% Tax Credits 4% Tax Credits I. Sources of Funds Total Per Unit Total Per Unit Total Per Unit Total Per Unit Supportable Permanent Loan $21,330,000 $140,329 $12,277,000 $81,305 $19,445,000 $127,928 $19,808,000 $131,179 Tax Credit Equity Investment $16,998,000 $111,829 $24,586,000 $162,821 $15,631,000 $102,836 $15,709,000 $104,033 Deferred Developer Fee $0 $0 $0 $0 $4,228,000 $27,816 $4,215,000 $27,914 General Partner Equity Contribution $4,107,000 $27,020 $0 $0 $0 $0 $0 $0 Income During Construction $1,796,480 $11,819 $1,254,501 $8,308 $0 $0 $0 $0 Seller Note - Accrued Deferred Interest $0 $0 $0 $0 $0 $0 $0 $0 Existing Reserves $0 $0 $0 $0 $0 $0 $0 $0 AHP $1,500,000 $9,868 $1,500,000 $9,934 $0 $0 $0 $0 Soft Loan lnterest $0 $0 $0 $0 $0 $0 $0 $0 Refunds $100,000 $658 $95,442 $632 LI Total Sources of Fund $45,831,480 $301,523 $39,712,943 $263,000 $39,304,000 $258,579 $39,732,000 $263,126 Or Say (Rounded) $45,831,000 $39,713,000 $39,304,000 $39,732,000 II. Development Costs ($50,838,000) ($334,461) ($45,888,000) ($303,894) ($49,134,000) ($323,250) ($49,378,000) ($327,007) III. Seller Note ($5,007,000) ($32,941) ($6,175,000) ($40,894) ($9,830,000) ($64,671) ($9,646,000) ($63,881) Z •0N TuaLuive}TV Prepared by: Keyser Marston Associates, Inc. Filename i:\National City Developer Evaluation Matrix_v3_Adjusted Pro formas;11/28/2017;lag Page 37 KMA ADJUSTED PRO FORMAS TABLE B-4 CASH PROCEEDS TO HOUSING AUTHORITY KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY BRIDGE Housing Kimball Morgan Total I. Purchase Price $30,400,000 $30,200,000 $60,600,000 II. (Less) Seller Note ($17,145,000) ($16,974,000) ($34,119,000) III. (Less) Existing Loan Balance $0 l.i IV. Cash Proceeds to Housing Authority $13,255,000 $13,226,000 $26,481,000 Per Unit $87,000 $88,000 $87,000 (1) Adjusted by KMA to exclude BRIDGE's proposed repayment of existing loan balance estimated at $234,000. (2) Adjusted by KMA to exclude CHW's proposed repayment of existing loan balance estimated at $726,000. Chelsea Investment Corporation Kimball Morgan $30,400,000 $30,200,000 $60,600,000 ($6,218,000) ($5,803,000) ($12,021,000) $24,182,000 $24,397,000 $48,579,000 $159,000 $162,000 $160,000 Z •0N TuaLuive}TV Prepared by: Keyser Marston Associates, Inc. Filename i:\National City Developer Evaluation Matrix_v3_Adjusted Pro formas;11/28/2017;lag Page 38 KMA ADJUSTED PRO FORMAS TABLE B-4 CASH PROCEEDS TO HOUSING AUTHORITY KIMBALL AND MORGAN TOWERS CITY OF NATIONAL CITY CHW Kimball Morgan Total; I. Purchase Price $30,400,000 $30,200,000 $60,600,000 II. (Less) Seller Note ($5,007,000) ($6,175,000) ($11,182,000) III. (Less) Existing Loan Balance $0 (2) IV. Cash Proceeds to Housing Authority $25,393,000 $24,025,000 $49,418,000 Per Unit $167,000 $159,000 $163,000 (1) Adjusted by KMA to exclude BRIDGE's propos('s proposed repayment of existing loan balance estimated at $234,000. (2) Adjusted by KMA to exclude CHW's proposed proposed repayment of existing loan balance estimated at $726,000. Morgan Kimball Community (RAHD Group) Partners Kimball Morgan Total $30,400,000 $30,200,000 $60,600,000 ($9,830,000) ($9,646,000) ($19,476,000) $20,570,000 $20,554,000 $41,124,000 $135,000 $136,000 $136,000 Z •0N TuaLuive}TV Prepared by: Keyser Marston Associates, Inc. Filename \National City Developer Evaluation Matrix_v3_Adjusted Pro formas;11/28/2017;lag Page 39 Attachment No. 2 Attachment C Kimball / Morgan RFP RFP QUESTIONS AND RESPONSES 290 of 297 Page 40 Attachment No. 2 ATTACHMENT C RFP QUESTIONS/RESPONSES KIMBALL AND MORGAN RFP CITY OF NATIONAL CITY I. QUESTIONS/RESPONSE #1: JULY 21, 2017: 1) Can a development team schedule more than one tour of the buildings? Response: Tours of the buildings will be limited to a total of two hours. The City Council decided that a capital needs assessment would not be part of the financial evaluation process. RFP responses will be evaluated based on the financing plan proposed for the project and not the detail of the rehabilitation budget. II. QUESTIONS/RESPONSE #2: JULY 24, 2017: 1) The scope and costs assumed for the renovation/rehabilitation of the towers directly affects the financial terms of the project that can be offered to the City (purchase price and ground lease payment to the City, seller carryback note, repayment of any City contribution). Has the City considered determining a fixed renovation budget for each tower for the purposes of the RFP responses? Having all teams use the same budget could help mitigate potential variation in proposed financial terms caused by varying budget/scope assumptions. Response: For proposal submittal purposes, each respondent shall assume a rehabilitation budget allowance of $55,000 per unit. This figure is assumed to include contractor overhead fee, general conditions, and contractor contingency. This figure does NOT include FF&E/Amenities and owner contingency. This figure is provided as an estimate for RFP submittal purposes only. The City has not conducted a capital needs assessment for either building. The selected developer will be responsible for commissioning a capital needs assessment for each building in order to determine the appropriate rehabilitation budget needed. 2) Can you please provide the current staffing plan for each of the towers— list of current staff, position, salary and whether they are shared staff or part time. Keyser Marston Associates, Inc. Page 41 September 18, 2017 291 of 297 Attachment No. 2 Response: Title Hours/Week Office Assistant 40 hours/week Manager 40 hours/week Assistant Manager 32 hours/week Superintendent 40 hours/week Maintenance 40 hours/week Maintenance 40 hours/week All staff are shared between the Towers. For privacy purposes, the City has requested that salary information for these individuals not be disclosed. 3) Can you please provide a detailed Profit and Loss Statement for both Kimball and Morgan for the 12 months ending 12.31/16 (similar to Attachment D.3 that was included for Kimball for FY 2014) Response: This information has been requested from property management and will be distributed when available. 4) Regarding Kimball Tower — what is the $25,000 budgeted for Management Consultants? Response: The $25,000 for Management Consultants shown in the Operating Budget is an asset management fee provided to the City of National City. The City will no longer collect this fee when the Towers are transferred to the new owner/operator. 5) Regarding both Kimball and Morgan Towers — what are the amounts and nature of the expenses that are paid by the properties for the Nutrition Center (acct #6535) for 2015, 2016 and 2017? Are these payments in addition to the City's annual subsidy of the Nutrition Center? Response: The operating budgets for the Towers provide for the maintenance of the common areas and other non -tenant improvement areas (i.e., shell, roof, building systems, etc.). The City provides janitorial services for areas inside the Nutrition Center including the lounge, cafeteria, and kitchen under a separate budget. Keyser Marston Associates, Inc. Page 42 September 18, 2017 292 of 297 Attachment No. 2 III. QUESTIONS/RESPONSE #3: JULY 31, 2017: 1) Can you please provide a detailed Profit and Loss Statement for both Kimball and Morgan for the 12 months ending 12.31/16 (similar to Attachment D.3 that was included for Kimball for FY 2014) Response: See attached. 2) Does the City have lead or asbestos reports for the Towers? Response: No, the City does not have lead or asbestos reports for either tower. IV. QUESTIONS/RESPONSE #4: AUGUST 3, 2017: 1) We request the last budget year operating budget breakdown for the Nutrition Center- for which the city's General Fund provides an annual subsidy of $475,000. Response: Please see attached. V. QUESTIONS/RESPONSE #5: AUGUST 8, 2017: 1) Can you provide us with annual operating statements for Morgan and Kimball Towers for two complete years, 2016 and 2015? Response: Please see attached. 2) Can you provide us with a current rent roll for Morgan and Kimball Towers? Response: Please see attached. 3) For purposes of underwriting and achieving the best financial outcome for the City of National City, can we assume that the City would be willing to issue project -based vouchers for 100% of the units of Kimball Tower? If the City would be willing to issue some project -based vouchers, but not 100%, how many should we assume? Or, for our evaluation and underwriting, should we assume that the City will not issue any project -based vouchers at Kimball Tower? Response: For analysis and underwriting purposes, please assume that the City will not issue any project -based vouchers for Kimball Tower. Keyser Marston Associates, Inc. Page 43 September 18, 2017 293 of 297 Attachment No. 2 VI. QUESTIONS/RESPONSE #6: AUGUST 14, 2017: 1) In RFP Question/Response #5 distributed on Tuesday 8/8/17, proposers were directed as follows: "For analysis and underwriting purposes, please assume that the City will not issue any project -based vouchers for Kimball Tower." Because the question of project -based vouchers on the Kimball Tower is one of the more significant issues in the restructuring of the Morgan and Kimball Towers project, we would like to discuss this issue further. If no project -based vouchers are provided on the Kimball Tower, the residential rental income that can be underwritten and leveraged on Kimball Tower as part of the recapitalization will be significantly lower than the income that can be underwritten on Morgan Tower. Lenders will not underwrite tenant -based voucher income. Given the economics of the rents and operating expenses, our conclusion is that it is unlikely that a permanent loan could be supported on Kimball even though the tenant -based vouchers would generate significant net income for the project. By contrast, Morgan Tower will have a renewed HAP contract with essentially FMR-based contract rents, and lenders will underwrite a permanent loan based on those contract rents. The result is a much lower amount of permanent financing (by millions of dollars) that can be leveraged for Kimball compared to Morgan. This in turn means less funding available for the overall renovation effort and for up -front payments to the Housing Authority. We believe that by working with the Housing Authority and HUD we can achieve 150 project - based vouchers on Kimball. Having these vouchers in place would result in better economics for the project and the City. In light of this, we'd like to respectfully request that the City and KMA discuss this issue further to evaluate options and then provide direction to the proposers on this issue. Response: Please assume that 100% of the units at Kimball Tower are project based. Although the City does not currently have a formal contract with HUD for the vouchers at Kimball Tower, HUD does currently recognize the Section 8 vouchers for Kimball as project based. The selected developer will have to assist in formalizing an agreement with HUD for the project based vouchers currently being provided at Kimball. Keyser Marston Associates, Inc. Page 44 September 18, 2017 294 of 297 Attachment No. 2 VII. QUESTIONS/RESPONSE #7: AUGUST 14, 2017: 1) Please confirm Utility Allowances to be used on a per unit basis and/or in addition if the tenants pay for the utilities as part of their 30%? Response: Tenants pay for electric heating, electric cooking, and other electric -lights. The current monthly utility allowance paid by tenants totals $41.00. Tenants pay 30% of their monthly income minus the utility allowance of $41.00. The Housing Authority of National City has its own utility allowance schedule and is revised yearly in October. The Housing Authority's current utility allowance schedule can be found at: http://www.nationalcityca.gov/home/showdocument?id=187 VIII. QUESTIONS/RESPONSE #8: AUGUST 21, 2017: Note: The following questions were received prior to the deadline for submittal of questions (August 15, 4:00 p.m.) 1) Our assumption is that when the project based voucher agreement for Kimball is formalized with HUD, the rent for each unit will be reset to the then -current Housing Authority payment standard. For the purposes of the RFP proforma, please confirm that teams should use the current 1BR payment standard from the Housing Authority's website? Response: Yes, please use the current FMR that our found on the utility allowance schedule. http://www.nationalcityca.gov/home/showdocument?id=187 2) Regarding the Morgan Tower, a new HAP rent level will be established with HUD via a market study process as part of the HAP contract renewal. It is possible that the final Morgan rents could be different than the final Kimball rents. This will be sorted out through negotiations with HUD. However, since this market study process hasn't taken place, for the purposes of the RFP proforma should teams use the current Housing Authority 1BR payment standard for Morgan so that both towers will have the same rental revenue assumption? Response: Yes, assume the same rent for both Kimball and Morgan. Keyser Marston Associates, Inc. Page 45 September 18, 2017 295 of 297 RESOLUTION NO. 2017 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY ACCEPTING THE FINDINGS FROM THE ANALYSIS COMPLETED BY KEYSER MARSTON ASSOCIATES, INC., OF FOUR FINANCIAL PROPOSALS SUBMITTED THROUGH A REQUEST FOR PROPOSALS PROCESS; SELECTING THE DEVELOPMENT TEAM COMPRISED OF COMMUNITY HOUSINGWORKS, INC., A CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION, AND MERCY HOUSING CALIFORNIA, INC., A CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION, FOR THE RECAPITALIZATION AND REHABILITATION OF KIMBALL AND MORGAN TOWERS LOCATED AT 1317 AND 1415 "D" AVENUE IN NATIONAL CITY; AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN EXCLUSIVE NEGOTIATING AGREEMENT IN ORDER TO BEGIN NEGOTIATIONS WITH THE SELECTED DEVELOPER WHEREAS, the Community Development Commission -Housing Authority of the City of National City ("CDC -HA") owns the Kimball and Morgan Towers, which are generally located at 1317 "D" Avenue and 1415 "D" Avenue, National City (the "Property"); and WHEREAS, Community HousingWorks and Mercy Housing California (jointly referred to as "Developer") responded jointly to the Request for Qualifications ("RFQ") issued by the CDC -HA dated March 24, 2016 and to the Request for Proposals ("RFP") issued by the CDC -HA dated June 30, 2017, and desires to recapitalize the Property and rehabilitate the improvements thereon generally as set forth in the RFQ; and WHEREAS, the Selection Committee established and approved by the CDC -HA as part of the Request for Qualifications process reviewed all of the complete RFQ responses, heard presentations, and conducted interviews from each development team; considered experience and qualifications, leveraging of non -CDC -HA resources, financial capacity, operating experience; and resident services and ranked the Developer as the highest of five development teams; and WHEREAS, the CDC -HA Board of Commissioner heard presentations on behalf of five development teams on October 25, 2016, and on December 6, 2016 determined an in- depth financial evaluation and comparison of financial proposals was necessary through a Request for Proposals (RFQ) process to make a selection of a development team; and WHEREAS, Keyser Marston Associates, Inc. (KMA) issued the RFP on June 30, 2017 on behalf of the CDC -HA and, through the established financial evaluation criteria that included an analysis of each development team's development program, depth of affordability, overall project feasibility, scored the Developer the highest of the four development teams that responded to the RFP; and NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission -Housing Authority of the City of National City accepts the findings from the analysis completed by Keyser Marston Associates, Inc., of four financial proposals submitted through a Request for Proposals process. BE IT FURTHER RESOLVED that the Community Development Commission - Housing Authority of the City of National City selects the development team comprised of Community HousingWorks, Inc., a California non-profit public benefit corporation, and Mercy 296 of 297 CDC -HA Resolution No. 2017 — Page Two Housing California, Inc., a California non-profit public benefit corporation, for the recapitalization and rehabilitation of Kimball and Morgan Towers located at 1317 and 1415 "D" Avenue in National City. BE IT FURTHER RESOLVED that the Community Development Commission - Housing Authority of the City of National City, in order to begin negotiations, authorizes the City Manager to execute an Exclusive Negotiating Agreement with the selected developer. PASSED and ADOPTED this 5' day of December, 2017. ATTEST: Leslie Deese, Secretary APPROVED AS TO FORM: Angil P. Morris -Jones General Counsel Ron Morrison, Chairman 297 of 297