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Draft Agenda Packe - 12-19-17 CC HA - Practice
AGENDA OF A REGULAR MEETING - NATIONAL CITY CITY COUNCIL/ COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY CALIFORNIA... NATIONAL CITir XNCORPORATfi RON MORRISON Mayor ALBERT MENDIVIL Vice Mayor JERRY CANO Councilmember MONA RIOS Councilmember ALEJANDRA SOTELO-SOLIS Councilmember 1243 National City Blvd. National City 619-336-4240 Meeting agendas and minutes available on web WWW.NATIONALCITYCA. GOV COUNCIL CHAMBERS CIVIC CENTER 1243 NATIONAL CITY BOULEVARD NATIONAL CITY, CALIFORNIA TUESDAY, DECEMBER 19, 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 585 CC/CDC-HA Agenda 12/19/2017 — 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 585 CC/CDC-HA Agenda 12/19/2017 — 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 1. Employee of the Quarter 2017 - Daniel P. McGuire, Firefighter. (Fire) PRESENTATIONS 2. Automatic External Defibrillator (AED) Pursuant to Cash Donation. (Jesus The Great I Am Church Inc.) (Fire) 3. Introduction of New Employees: Recreation Supervisors Juanita Castaneda and Elyana Delgado and Planning Technician Christopher Stanley. (Community Services and Planning) 4. Introduction of James Haliday - New Interim Director of A Reason To Survive (ARTS). 5. Update on Wayfinding and Gateway Projects. (Brad Raulston, Deputy City Manager) INTERVIEWS / APPOINTMENTS CONSENT CALENDAR 6. 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) 7. 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 May 2, 2017, June 6, 2017 and August 1, 2017 and Adjourned Regular Meeting of the City Council and Community 3 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 4 Development Commission - Housing Authority of the City of National City of June 20, 2017 and Special Meeting of the City Council of the City of National City of September 5, 2017. (City Clerk) 8. Resolution of the City Council of the City of National City authorizing the City Manager to execute an Agreement with A Reason to Survive, Inc. (ARTS) to lead the development of two creative placemaking projects that incorporate art, health and community engagement, located in the Westside (Old Town) neighborhood of National City funded through a $65,000 Creative California Communities grant from the California Arts Council awarded to ARTS and $65,000 in City matching funds. (Engineering/Public Works) 9. Resolution of the City Council of the City of National City authorizing the City (Buyer) to piggyback on to the City of Poway's Urban Forestry Maintenance Services contract with West Coast Arborist, Inc. (WCA), and award the purchase of specialized tree trimming, removal, and planting services in an amount not to exceed $90,000, consistent with Section 2.60.260 of the National City Municipal Code regarding cooperative purchasing. (Engineering/Public Works) 10. Investment Report for the quarter ended September 30, 2017. (Finance) 11. Warrant Register #19 for the period of 11 /01 /17 through 11/07/17 in the amount of $2,772,515.75. (Finance) 12. Warrant Register #20 for the period of 11/08/17 through 11/14/17 in the amount of $1,113,581.15. (Finance) PUBLIC HEARINGS: ORDINANCES AND RESOLUTIONS 13. Public Hearing and Adoption 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 and Adoption 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 streets based on certified Engineering and Traffic Surveys. (Engineering/Public Works) 15. Public Hearing and Adoption of an Ordinance of the City Council of the City of National City Amending Title 18 of the National City Municipal Code by Amending Sections 18.24.050 (Mixed -Use Corridor and District zones), 18.25.020 (Industrial zones), 18.30.050 (Sale of alcoholic beverages and live entertainment), and 18.50.010 (Glossary) (Applicant 4 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 5 City -Initiated Land Use Amendment) (Case File 2017-25 A) (Planning) **Companion Item #16** NON CONSENT RESOLUTIONS 16. Resolution of the City Council of the City of National City amending City Council Policy No. 707, entitled Alcohol Beverage Licensing Application Review Process and Alcohol Conditional Use Permit Standards, related to craft beer tasting room standards. (Applicant: City -Initiated Land Use Amendment) (Case File: 2017-25 A) (Planning) **Companion Item #15*** 17. Resolution of the City Council of the City of National City authorizing the Mayor to execute an Agreement by and between the City of National City and National City Living History Farm Preserve approving relocation of a Victorian Home from 1904 "F" Avenue to the Stein Farm property located at 1808 "F" Avenue in National City, subject to applicable City permits and requirements as described in the Agreement. (Housing & Economic Development) 18. Resolution of the City Council of the City of National City authorizing the Mayor to execute a Second Amendment to the Agreement between the City of National City and Alpha Project for the Homeless to correct the total not to exceed amount to be $170,000 for the period of March 2, 2017 through June 30, 2018, to provide outreach services for the homeless and intervention services, and to adjust the monthly not to exceed amount to $10,000 for the term of the Agreement, ending June 30, 2018. (Neighborhood Services) 19. Resolution of the City Council of the City of National City authorizing the Mayor to execute an agreement with a mutual indemnity and hold harmless provision with Phase II Systems dba Public Agency Retirement Services for pension trust administration services for the period December 20, 2017 through December 31, 2020 and authorizing the City Manager to execute up to two additional one-year extensions. (Finance) 20. Resolution of the City Council of the City of National City approving effective January 1, 2018, the salary schedule for the Part -Time and Seasonal employee group, as amended: 1) adjusting upward classifications with salary ranges below the 2018 State of California minimum wage; and 2) adjusting upward classifications impacted by the salary compression resulting from the minimum wage increases. (Human Resources) 21. Resolution of the City Council of the City of National City adopting the benefits plan for the Confidential employee group as amended to allow for on -call and call-back pay for the Management Information Systems 5 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 6 Technician series in support of critical technology systems City-wide. (Human Resources) NEW BUSINESS 22. Presentation on a proposal to maintain and operate a community garden by Yalla, Inc. and Mundo Gardens as part of the expansion of Paradise Creek Educational Park. (Housing & Economic Development) 23. Staff Report: Fiscal Year 2017 and 1st Quarter Fiscal Year 2018 Budget Review. (Finance) B. COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY CONSENT RESOLUTIONS - HOUSING AUTHORITY PUBLIC HEARINGS: RESOLUTIONS - HOUSING AUTHORITY NON CONSENT RESOLUTIONS - HOUSING AUTHORITY 24. Resolution of the Community Development Commission -Housing Authority of the City of National City (Housing Authority) approving the refinancing terms for Vista Del Sol Apartments located at 1545 "Q" Avenue in National City that preserves affordability for 130 apartment units through December 31, 2073; approving the reinstatement of two loans made by the Housing Authority as one new loan in the total amount of $7,407,795.08 to be assumed by Vista Del Sol Apartment, L.P.; and authorizing the Executive Director to execute the Amended and Restated Loan and Regulatory Agreements and any other documents necessary to close escrow. (Housing & Economic Development) NEW BUSINESS - HOUSING AUTHORITY C. REPORTS STAFF REPORTS 25. 2017/2018 Employee Work Furlough (December 20, 2017 through January 2, 2018). (City Manager) 26. Interpretation Services - Spanish to English. (City Clerk) MAYOR AND CITY COUNCIL CLOSED SESSION REPORT ADJOURNMENT 6 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 7 Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City - Tuesday - January 16, 2018 - 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 7 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 8 The following page(s) contain the backup material for Agenda Item: Employee of the Quarter 2017 - Daniel P. McGuire, Firefighter. (Fire) 8 of 585 k CITY OF NATIONAL CITY MEMORANDUM DATE; TO: Leslie Deese, Cijt anager FROM: Stacey Steven n, e rty City Manager SUBJECT: EMPLOYEE OF THE QUARTER PROGRAM December 5, 2017 The Employee Recognition Program communicates the City's appreciation for outstanding performance. In doing so, it recognizes employees who maintain high standards of personal conduct and make significant contributions to the workplace and community. The employee to be recognized for the Fourth Quarter of calendar year 2017 is: Firefighter Daniel P. McGuire By copy of this memo, the employee is invited to attend the Council meeting on Tuesday, December 19, 2017 to be recognized for his achievement and service. Attachment cc: Daniel P. McGuire Frank Parra — Director of Emergency Services Mark Beveridge — Battalion Chief Josie Flores -Clark — Executive Assistant Human Resources — Office File 9 of 585 Performance Recognition Award Nomination Form nominate Firefighter Dan McGuire For the Performance Recognition Award for the fo oleng reasons: RECEIVED DEC 052017 CITY OF NATIONAL CITY HUMAN RESOURCES DEPARTMENT ?lease state. reason why your nominee should receive an award, (i.e., examples of service beyond requirements of position, exemplary service to the public, outstanding job performance, etc.) Do not to exceed 150 total words. Please be as specific as possible when giving your examples. Firefighter Dan McGuire has been a member of the National City Fire Department since November 2015. In that short time he has demonstrated his willingness to go above and beyond his scheduled duties to assist in projects and tasks that improve the overall function of the Fire Department. He has spent many hours after his scheduled duty days completing critical fabrication needs on Squad 33, the newest emergency response vehicle in the City. Additionally, he assisted with the development and fabrication of the Department's water tender vehicle. His mechanical and construction skills as a great asset tc ths Department. Firefighter McGuire is an exemplary employee and an outstanding crew member. His commitment to providing the highest possible standard of care to the citizens of National City is an asset to the Department and the City. FORWARD COMPLETED NOMINATION TO: National City Performance Recognition Program Human Resources Department Nominated h - Frank Parra Director of Emergency Services Signature, Date: Dec ember 5, 2017 10 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 11 The following page(s) contain the backup material for Agenda Item: Automatic External Defibrillator (AED) Pursuant to Cash Donation. (Jesus The Great I Am Church Inc.) (Fire) 11 of 585 ITEM NO. 12/19/2017 AUTOMATIC EXTERNAL DEFIBRILLATORS (AED) PURSUANT TO CASH DONATION JESUS THE GREAT I AM CHURCH INC. (FIRE) 12 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 13 The following page(s) contain the backup material for Agenda Item: Introduction of New Employees: Recreation Supervisors Juanita Castaneda and Elyana Delgado and Planning Technician Christopher Stanley. (Community Services and Planning) 13 of 585 Item # 12/19/17 INTRODUCTION OF NEW EMPLOYEES: RECREATION SUPERVISORS JUANITA CASTANEDA AND ELYANA DELGADO AND PLANNING TECHNICIAN CHRISTOPHER STANLEY (Community Services and Planning) 14 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 15 The following page(s) contain the backup material for Agenda Item: Introduction of James Haliday - New Interim Director of A Reason To Survive (ARTS). 15 of 585 Item # 12/19/17 INTRODUCTION OF JAMES HALIDAY — NEW INTERIM DIRECTOR OF A REASON TO SURVIVE (ARTS) 16 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 17 The following page(s) contain the backup material for Agenda Item: Update on Wayfinding and Gateway Projects. (Brad Raulston, Deputy City Manager) 17 of 585 Item # 12/19/17 UPDATE ON WAYFINDING AND GATEWAY PROJECTS (Brad Raulston, Deputy City Manager) 18 of 585 CC/CDC-HA Agenda 12/19/2017 — 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 585 Item # 12/19/17 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 585 CC/CDC-HA Agenda 12/19/2017 — Page 21 The following page(s) contain the backup material for Agenda Item: 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 May 2, 2017, June 6, 2017 and August 1, 2017 and Adjourned Regular Meeting of the City Council and 21 of 585 Item # 12/19/17 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 MAY 2, 2017, JUNE 6, 2017, AND AUGUST 1, 2017 AND ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY OF JUNE 20, 2017 AND SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY OF SEPTEMBER 5, 2017. (City Clerk) 22 of 585 Book 99 / Page 79 05-02-2017 DRAFT DRAFT DRAFT MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY May 2, 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 6:09 p.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council / Board members present: Cano, Mendivil, Morrison, Rios, Sotelo-Solis. Administrative Officials present: Dalla, Deese, Denham, Duong, Manganiello, Morris -Jones, Parra, Raulston, Roberts, Rodriguez, Stevenson, Vergara, Williams, Ybarra. Others present: Student Representative Jose Estrada. PLEDGE OF ALLEGIANCE TO THE FLAG BY MAYOR RON MORRISON PUBLIC COMMENTS Coyote Moon, National City, spoke against allowing the sale of puppies from puppy mills. Rita Heuss, National City, expressed appreciation and thanks for the pilot project in El Toyon Park as well as the many volunteers who showed up to work for Volunteer Service Day. Joseph Bendah voiced his frustration about the inability to get an occupancy permit for his residential project on 8th Street. Edward Alvarez, National City, expressed support for Mr. Bendah. Gina (unknown last name), National City, spoke in support of Mr. Bendah. Rico Brooks, National City, supported Mr. Bendah. PROCLAMATIONS PROCLAMATION ADMIN (102-2-1) 1. Proclaiming May 3, 2017 as "Peace Officer Memorial Day" PROCLAMATION ADMIN (102-2-1) 2. Proclaiming May 4, 2017 as "National Day of Prayer" 23 of 585 1 Book 99 / Page 80 05-02-2017 PRESENTATIONS COUNCIL MEETING PRESENTATIONS / AWARDS & RECOGNITIONS 2017 (102-10-12) 3. Manuel Portillo Casa De Salud Youth Center Improbamente. (Community Services) INTERVIEWS / APPOINTMENTS BOARDS & COMMISSIONS ADMIN (101-1-1) 4. Interviews and Appointments: Traffic Safety Committee. (City Clerk) ACTION: Mr. Richard Delgado appeared for interview. Motion by Morrison, seconded by Cano, to appointed Mr. Richard Delgado to the Traffic Safety Committee. Carried by unanimous vote. CITY COUNCIL CONSENT CALENDAR ADOPTION OF CONSENT CALENDAR. Item No. 5 (NCMC), Item No. 6 (Minutes), Item Nos. 7 through 12 (Resolution No. 2017-61 through 2017-66), Item Nos. 13 through 15 (Warrant Registers). Motion by Cano, seconded by Mendivil, to approve the Consent Calendar. Carried by unanimous vote. MUNICIPAL CODE 2017 (506-2-32) 5. MOTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE WAIVING OF THE READING OF THE TEXT OF THE ORDINANCES CONSIDERED AT THIS MEETING AND PROVIDING THAT SUCH ORDINANCES SHALL BE INTRODUCED AND/OR ADOPTED AFTER A READING OF THE TITLE ONLY. (City Clerk) ACTION: Approved. See above. APPROVAL OF THE MINUTES 6. 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 FEBRUARY 7, 2017 AND APRIL 18, 2017. (City Clerk) ACTION: Approved. See above. CONTRACT (C2016-8) 7. Resolution No. 2017-61. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY: 1) ACCEPTING THE WORK PERFORMED BY DICK MILLER, INC. FOR THE PLAZA BOULEVARD AND 14TH STREET IMPROVEMENTS PROJECTS, CIP NO. 15-10; 2) APPROVING THE FINAL CONTRACT AMOUNT OF $1,379,928.26; 3) RATIFYING THE RELEASE OF RETENTION IN THE AMOUNT OF $68,996.41; AND 4) AUTHORIZING THE MAYOR TO SIGN THE NOTICE OF COMPLETION FOR THE PROJECT. (Engineering/Public Works) ACTION: Adopted. See above. 24 of 585 2 Book 99 / Page 81 05-02-2017 CONSENT CALENDAR (cont.) GRANT / PUBLIC SAFETY (206-4-27) 8. Resolution No. 2017-62. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY RATIFYING THE ACCEPTANCE OF THE 4TH DISBURSEMENT FROM THE STATE OF CALIFORNIA AB109 GRANT FUND, ADMINISTERED THROUGH THE CITY OF SAN DIEGO IN THE AMOUNT OF $37,853.00, 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, AND AUTHORIZING THE ESTABLISHMENT OF A FISCAL YEAR 2017 APPROPRIATION AND CORRESPONDING REVENUE BUDGET OF $37,853.00. (Police) ACTION: Adopted. See above. EQUIPMENT / VEHICLE PURCHASE ADMIN (209-1-1) 9. Resolution No. 2017-63. 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) 2017 NISSAN MAXIMA SL, FOR THE POLICE DEPARTMENT FROM BUENA PARK NISSAN OF BUENA PARK, IN THE AMOUNT OF $34,075.61. (Finance) ACTION: Adopted. See above. EQUIPMENT / VEHICLE PURCHASE ADMIN (209-1-1) 10. Resolution No. 2017-64. 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) 2017 DODGE DURANGO SXT AND (1) 2017 DODGE GRAND CARAVAN SE, FOR THE POLICE DEPARTMENT FROM COURTESY CHRYSLER DODGE OF SAN JUAN CAPISTRANO, IN THE AMOUNT OF $50,892.93. (Finance) ACTION: Adopted. See above. PARKING & TRAFFIC CONTROL ADMIN 2017 (801-2-38) 11. Resolution No. 2017-65. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING, 1) INSTALLATION OF "NO PARKING" SIGNS FOR 120 FEET ON THE NORTH SIDE OF E. 20TH STREET, WEST OF "N" AVENUE; 2) INSTALLATION OF 20 FEET OF RED CURB "NO PARKING" ON THE WEST SIDE OF "N" AVENUE, NORTH OF E. 20TH STREET; AND 3) INSTALLATION OF STOP SIGNS AND YIELD SIGNS TO PROVIDE TRAFFIC CONTROL AT VARIOUS INTERSECTIONS WITHIN THE NEIGHBORHOOD BOUND BY E. 20TH STREET TO THE NORTH, ROSELAWN STREET TO THE SOUTH, "0" AVENUE TO THE EAST, AND "N" AVENUE TO THE WEST (TSC NO. 2017-12). (Engineering/Public Works) ACTION: Adopted. See above. 25 of 585 3 Book 99 / Page 82 05-02-2017 CONSENT CALENDAR (cont.) PARKING & TRAFFIC CONTROL ADMIN 2017 (801-2-38) 12. Resolution No. 2017-66. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING INSTALLATION OF TIME -RESTRICTED "NO PARKING STREET SWEEPING" SIGNS (WEDNESDAY, 4:00 AM TO 6:00 AM) ON THE 1200 BLOCK OF MCKINLEY AVENUE AND 600 BLOCK OF W. 12TH STREET (TSC No. 2017-14). (Engineering/Public Works) ACTION: Adopted. See above. WARRANT REGISTER JULY 2016 — JUNE 2017 (202-1-31) 13. Warrant Register #37 for the period of 03/08/17 through 03/14/17 in the amount of $2,163,055.28. (Finance) ACTION: Ratified. See above. WARRANT REGISTER JULY 2016 — JUNE 2017 (202-1-31) 14. Warrant Register #38 for the period of 03/15/17 through 03/21/17 in the amount of $576,011.51. (Finance) ACTION: Ratified. See above. WARRANT REGISTER JULY 2016 — JUNE 2017 (202-1-31) 15. Warrant Register #39 for the period of 03/22/17 through 03/29/17 in the amount of $1,741,461.85. (Finance) ACTION: Ratified. See above. PUBLIC HEARINGS BLOCK GRANT PROGRAM ADMIN 2017-2018 (406-1-32) 16. Public Hearing No. 2 of 2 on the allocation of U.S. Department of Housing and Urban Development (HUD) Fiscal Year 2017-2018 entitlement grant funds, program income, unallocated funds, and funds remaining from completed projects to Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME) Program activities proposed for the 2017-2018 Action Plan. (Housing & Economic Development) RECOMMENDATION: Conduct the Public Hearing TESTIMONY: Lori Pfelior, San Diego Habitat for Humanity, spoke in support. ACTION: Motion by Rios, seconded by Sotelo-Solis, to close the Public Hearing. Carried by unanimous vote ORDINANCES FOR ADOPTION MUNICIPAL CODE 2017 (506-2-32) 17. Ordinance No. 2017-2436. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING TITLE 10 SECTION10.30.040 OF THE NATIONAL CITY MUNICIPAL CODE TO 26 of 585 4 Book 99 / Page 83 05-02-2017 ORDINANCES FOR ADOPTION (cont.) MUNICIPAL CODE 2017 (506-2-32) 17. Ordinance No. 2017-2436 (continued). ESTABLISH THE CITY COUNCIL'S ATHORITY TO GOVERN THE SALE OR USE OF ALCOHOLIC BEVERAGES IN CITY -OWNED BUILDINGS OPERATED AND CONTROLLED BY THIRD PARTIES, WITHIN A PUBLIC PARK, THROUGH WRITTEN AGREEMENTS WITH THE CITY. (City Manager) RECOMMENDATION: Adopt the Ordinance. TESTIMONY: None ACTION: Motion by Rios, seconded by Sotelo-Solis, to adopt the Ordinance. Carried by unanimous vote. NON CONSENT RESOLUTIONS BLOCK GRANT PROGRAM ADMIN 2017-2018 (406-1-32) 18. Resolution No. 2017-67. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) 2017-2018 ANNUAL ACTION PLAN AND AUTHORIZING THE ESTIMATED ALLOCATION OF 2017-2018 HUD ENTITLEMENT GRANT FUNDS, PROGRAM INCOME, FUNDS REMAINING FROM COMPLETED PROJECTS, AND UNCOMMITTED FUNDS TO COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIPS (HOME) PROGRAM ACTIVITIES PROPOSED FOR THE FISCAL YEAR (FY) 2017-2018 ANNUAL ACTION PLAN. (Housing & Economic Development) RECOMMENDATION: Approve the Action Plan for the CDBG and HOME funding allocations from the sources identified in the Financial Statement above. TESTIMONY: None ACTION: Motion by Sotelo-Solis, seconded by Mendivil, to adopt the Resolution. Carried by unanimous vote. CONTRACT (C2017-25) 19. Resolution No. 2017-68. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING 1) THE CITY MANAGER TO SIGN A LETTER OF INTENT WITH KABOOM! IN ORDER TO ADVANCE THE CITY OF NATIONAL CITY IN THE GRANT SELECTION PROCESS TO BUILD A NEW PLAYGROUND AT KIMBALL PARK 2) THE CITY MANAGER TO ACCEPT THE KABOOM! GRANT AND EXECUTE THE KABOOM! COMMUNITY PARTNER PLAYGROUND AGREEMENT, IF AWARDED IN SEPTEMBER2017. (Community Services) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None. ACTION: Motion by Mendivil, seconded by Sotelo-Solis, to adopt the Resolution. Carried by unanimous vote. 27 of 585 5 Book 99 / Page 84 05-02-2017 NON CONSENT RESOLUTIONS (cont.) CONDITIONAL USE PERMITS 2017 (403-32-1) 20. Resolution No. 2017-69. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A CONDITIONAL USE PERMIT FOR WHOLESALE AUTO SALES AND ACCESSORY USES AT 2000 ROOSEVELT AVENUE. (APPLICANT: DEBORAH FALK) (CASE FILE NO.: 2016-10 CUP) (Planning) RECOMMENDATION: Adopt the Resolution. TESTIMONY: Perry Falk, the applicant, spoke in support and responded to questions. Edward Cervantes, spoke in support of the permit. Maria Villanueva, representing the Environmental Health Coalition (EHC), spoke against the Conditional Use Permit. Virginia Zepeda, National City, spoke in support of the permit. Sandy Naranjo, EHC member, spoke in opposition. Richard Soto, representing Perry Ford, spoke in support. Mario Lopez, from Perry Ford, spoke in support. ACTION: Motion by Rios, seconded by Sotelo-Solis, to deny the Conditional Use Permit. Carried by the following vote, to -wit: Ayes: Rios, Sotelo-Solis, Cano. Nays: Morrison, Mendivil. Abstain: None. Absent: None. NEW BUSINESS CONDITIONAL USE PERMITS 2017 (403-32-1) 21. Notice of Decision - Planning Commission approval of a Conditional Use Permit for a proposed gym (Planet Fitness) to be located at 2530 Southport Way. (Applicant: Adam Van Dale for Planet Fitness) (Case File 2017-01 CUP) (Planning) RECOMMENDATION: Staff concurs with the decision of the Planning Commission and recommends that the Notice of Decision be filed. TESTIMONY: None ACTION: Motion by Sotelo-Solis, seconded by Cano, to approve staff recommendation. Carried by unanimous vote. SUBDIVISIONS / VARIANCES 2017 (415-01-13) 22. Notice of Decision — Planning Commission approval of a Zone Variance to allow a residential addition in the front yard setback and a parking space in the exterior side yard setback at a property located at 641 East 5th Street. (Applicant: Sarah Ascolese) (Case File 2017-02 Z) (Planning) RECOMMENDATION: Staff concurs with the decision of the Planning Commission and recommends that the Notice of Decision be filed TESTIMONY: None ACTION: Motion by Rios, seconded by Cano, to approve staff recommendation. Carried by unanimous vote. 28 of 585 6 Book 99 / Page 85 05-02-2017 COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY No Agenda Items STAFF REPORTS - None MAYOR AND COUNCIL Vice Mayor Mendivil said he was very pleased with the work of staff in bringing 42 million dollars in grants to the city over the last seven years and gives all the credit to them for all the good things happening in our city. Member Sotelo-Solis shared her views on Item No. 20, the Conditional Use Permit that was denied, said that she was disappointed that Pension Trust Fund was not approved at the last budget meeting and gave kudo's to staff for the great community service project last week. Student Council Representative Jose Estrada complimented the staff and public for all their hard work during Community Service Day, shared the dismay of some of his peers about the vote on the Welcoming Resolution and extended an invitation to the many upcoming events at Sweetwater High School. Member Rios extended a welcome to new City Attorney Angil Morris -Jones; reported that she attended the Business Disaster Preparation Forum sponsored by the South County Economic Development Commission and commended all involved in the Volunteer Community Service Day event. Member Cano said it is not easy doing what the City Council does and sometimes the Council doesn't make everyone happy. He announced that he attended the Sweetwater High Basketball Team awards where he was presented a recognition award for his support and dedication to the team. Mayor Morrison praised the efforts of staff and the community for the clean-up day event at El Toyon Park; expressed his view of the impact of the City Council action on Item No. 20 and took issue with how the City's interests are being represented on outside Boards. CLOSED SESSION REPORT There was no Closed Session. ADJOURNMENT 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 to be held Tuesday, May 16, 2017 at 6:00 p.m. at the Council Chambers, National City, California. Carried by unanimous vote. 29 of 585 7 The meeting closed at 8:17 p.m. Book 99 / Page 86 05-02-2017 City Clerk The foregoing minutes were approved at the Regular Meeting of December 19, 2017. Mayor 30 of 585 8 Book 99 / Page 94 06-06-2017 DRAFT DRAFT DRAFT MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY June 6, 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 6:07 p.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council / Board members present: Cano, Mendivil, Morrison, Rios, Sotelo-Solis. Administrative Officials present: Dalla, Deese, Duong, Manganiello, Morris -Jones, Parra, Raulston, Roberts, Rodriguez, Stevenson, Vergara, Williams, Ybarra. Others present: City Treasurer Mitch Beauchamp and Student Representative Jose Estrada. PLEDGE OF ALLEGIANCE TO THE FLAG BY MAYOR RON MORRISON CLOSED SESSION REPORT City Attorney Angil Morris -Jones reported that the City Council gave direction on Item Nos. 1, 3 and 4 on the Closed Session Agenda. On Item No. 2, (Jones v. City of National City, which is the Welcoming City matter), the City Council voted unanimously to put both Resolutions on the Special Meeting Agenda for June 19th at 6:00 p.m. There will be a Special City Council Meeting on June 19th at 6:00 p.m. to consider the Resolution that was originally adopted, which was the Substitute Resolution as well as the Original Resolution that was not adopted. (See attached Exhibit "L") PUBLIC COMMENTS Georgette Jaueregui, appeared on behalf of the San Diego County Fair, highlighted events at this year's fair and extended an invitation to the Mayor and Council. Jacqueline Reynoso, National City Chamber, and Kin Elsom, from Lift Development Enterprises, Inc., provided information on a new program sponsored by the Chamber of Commerce, Lift Development, and other partners to promote business growth and development. Joseph Bendah, requested that his development on 8th Street be placed on a future agenda. Larry Emerson, National City, promoted the advantages of electric vehicles and distributed supporting documentation. Rico Brooks spoke in support of Mr. Bendah's request. 31 of 585 9 Book 99 / Page 95 06-06-2017 PUBLIC COMMENTS (cont.) Speaker slips were submitted by 50 individuals, 45 of whom spoke. The topics discussed included; support for the Duarte family children from National City whose parents were being detained by Immigration/Customs Enforcement; the harm suffered when families are separated by deportation; support for a Welcoming Resolution, Senate Bill 54 and becoming a Sanctuary City and the need for political leadership and action. AWARDS AND RECOGNITIONS COUNCIL MEETING PRESENTATIONS / AWARDS & RECOGNITIONS 2017 (102- 10-12) 1. 2017 Emergency Medical Service Scholarship Award Winners - Phillip Blain Brandon, Julio Angel Cesena, and Roberto Rodriguez Vargas. (Fire) PRESENTATIONS COUNCIL MEETING PRESENTATIONS / AWARDS & RECOGNITIONS 2017 (102- 10-12) 2. Brightside Produce Distribution to National City Stores. (Tana A. Castro, Ph.D., San Diego State University) COUNCIL MEETING PRESENTATIONS / AWARDS & RECOGNITIONS 2017 (102- 10-12) 3. National City Tourism Marketing District (TMD) - Final Report 2016. (Jacqueline Reynoso, President/CEO, National City Chamber of Commerce) COUNCIL MEETING PRESENTATIONS / AWARDS & RECOGNITIONS 2017 (102-10-12) 4. 7th Annual Career Pathways to Success Job Fair. (Jacqueline Reynoso, President/CEO, National City Chamber of Commerce) CITY COUNCIL CONSENT CALENDAR ADOPTION OF CONSENT CALENDAR. Item No. 5 (NCMC), Item Nos. 6 through 18 (Resolution Nos. 2017-74 through 2017-86), Item No. 18 (Report), Item Nos. 20 and 21 (Warrant Registers). Motion by Sotelo-Solis, seconded by Rios, to approve the Consent Calendar. Carried by unanimous vote. MUNICIPAL CODE 2017 (506-2-32) 5. MOTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE WAIVING OF THE READING OF THE TEXT OF THE ORDINANCES CONSIDERED AT THIS MEETING AND PROVIDING THAT SUCH ORDINANCES SHALL BE INTRODUCED AND/OR ADOPTED AFTER A READING OF THE TITLE ONLY. (CITY CLERK) ACTION: Approved. See above. 32 of 585 10 Book 99 / Page 96 06-06-2017 CONSENT CALENDAR (cont.) CONTRACT (C86-47) 6. Resolution No. 2017-74. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE THE FOURTH AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND AMERICAN MEDICAL RESPONSE AMBULANCE SERVICE, INC. (AMR) TO CONTINUE TO PROVIDE BASIC AND ADVANCED LIFE SUPPORT AMBULANCE TRANSPORTATION SERVICES EFFECTIVE JULY 1, 2017 FOR A PERIOD OF TWO YEARS. (Fire) ACTION: Adopted. See above. CONTRACT (C2005-65) GRANT / PUBLIC SAFETY (206-4-27) 7. Resolution No. 2017-75. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE THE GRANT ASSURANCES FOR THE FY16 STATE HOMELAND SECURITY GRANT PROGRAM, AND AUTHORIZING THE ESTABLISHMENT OF AN APPROPRIATION AND CORRESPONDING REVENUE BUDGET IN THE AMOUNT OF $52,883 FROM THE FY16 STATE HOMELAND SECURITY GRANT PROGRAM FOR A REIMBURSABLE GRANT PURCHASE OF EQUIPMENT FOR THE POLICE AND FIRE DEPARTMENTS. (Fire) ACTION: Adopted. See above. GRANT / PUBLIC SAFETY (206-4-27) 8. Resolution No. 2017-76. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE ACCEPTANCE OF $3,000 FROM AMERICAN MEDICAL RESPONSE (AMR), AND THE ESTABLISHMENT OF AN APPROPRIATION AND CORRESPONDING REVENUE BUDGET IN THE AMOUNT OF $3,000 FOR THE PURPOSE OF AWARDING THREE 2017 EMERGENCY MEDICAL SERVICE SCHOLARSHIPS TO PURSUE TRAINING IN FIRE SERVICE OR PREHOSPITAL CARE SUCH AS EMERGENCY MEDICAL TECHNICIAN AND/OR PARAMEDIC. (Fire) ACTION: Adopted. See above. CONTRACT (C2016-52) 9. Resolution No. 2017-77. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY: 1) ACCEPTING THE WORK PERFORMED BY PORTILLO CONCRETE, INC. FOR THE E. 16TH STREET AND GROVE STREET PEDESTRIAN ENHANCEMENTS PROJECTS, CIP NO. 16-03; 2) APPROVING THE FINAL CONTRACT AMOUNT OF $98,418.50; 3) RATIFYING THE RELEASE OF RETENTION IN THE AMOUNT OF $4,920.92; AND 4) AUTHORIZING THE MAYOR TO SIGN THE NOTICE OF COMPLETION FOR THE PROJECT. (Engineering/Public Works) ACTION: Adopted. See above. 33 of 585 11 Book 99 / Page 97 06-06-2017 CONSENT CALENDAR (cont.) SUBDIVISIONS / VARIANCES 2017 (405-1-13) 10. Resolution No. 2017-78. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE PARK LOFTS SUBDIVISION MAP, CASE FILE NUMBER 2012-03 S, AND AUTHORIZING THE MAYOR AND CITY CLERK TO SIGN MAP. (Engineering/Public Works) ACTION: Adopted. See above. GRANT / RECYCLING HOUSEHOLD (206-4-3) 11. Resolution No. 2017-79. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY RATIFYING ACCEPTANCE OF FUNDS IN THE TOTAL AMOUNT OF $46,895 AWARDED TO THE CITY FROM THE BEVERAGE CONTAINER RECYCLING CITY/COUNTY PAYMENT PROGRAM FROM THE CALIFORNIA DEPARTMENT OF RESOURCES RECYCLING AND RECOVERY (CALRECYCLE) FOR FY14 THROUGH FY16 TO IMPLEMENT SUCH PROJECTS AS BEVERAGE RECYCLING CONTAINERS IN CITY PARKS, CLEAN-UP ACTIVITIES, AND EDUCATIONAL MATERIALS, AUTHORIZING THE ESTABLISHMENT OF AN APPROPRIATION, AND RATIFYING THE ESTABLISHMENT OF A REVENUE BUDGET. (Engineering/Public Works) ACTION: Adopted. See above. CONTRACT (C2015-40) 12. Resolution No. 2017-80. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY: 1) ACCEPTING THE WORK PERFORMED BY WESTERN RIM CONSTRUCTORS, INC. FOR THE KIMBALL AND EL TOYON PARK IMPROVEMENTS PROJECTS; 2) APPROVING THE FINAL CONTRACT AMOUNT OF $3,770,433.87; 3) RATIFYING THE RELEASE OF RETENTION IN THE AMOUNT OF $96,865.91; AND 4) AUTHORIZING THE MAYOR TO SIGN THE NOTICE OF COMPLETION FOR THE PROJECT. (Engineering/Public Works) ACTION: Adopted. See above. CONTRACT (C2015-41) 13. Resolution No. 2017-81. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY: 1) ACCEPTING THE WORK PERFORMED BY WEST - TECH CONTRACTING, INC. FOR THE PARADISE CREEK RESTORATION PROJECT, CIP NO. 15-05; 2) APPROVING THE FINAL CONTRACT AMOUNT OF $1,671,952.06; 3) RATIFYING THE RELEASE OF RETENTION IN THE AMOUNT OF $83,597.60; AND 4) AUTHORIZING THE MAYOR TO SIGN THE NOTICE OF COMPLETION FOR THE PROJECT. (Engineering/Public Works) ACTION: Adopted. See above. 34 of 585 12 Book 99 / Page 98 06-06-2017 CONSENT CALENDAR (cont.) CONTRACT (C2016-33) 14. Resolution No. 2017-82. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND NATIONAL SCHOOL DISTRICT TO PROVIDE SWIM LESSONS FOR THIRD GRADE STUDENTS AT LAS PALMAS POOL DURING THE SCHOOL YEAR 2017-2018 IN THE AMOUNT OF $40,000, WITH AN OPTION TO MUTUALLY EXTEND THE AGREEMENT FOR TWO ADDITIONAL ONE YEAR TERMS. (Community Services) ACTION: Adopted. See above. CONTRACT (C2017-49) 15. Resolution No. 2017-83. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY MANAGER TO EXECUTE A FACILITY USE PERMIT, WITH A MUTUAL INDEMNITY AND HOLD HARMLESS, BETWEEN THE CITY OF NATIONAL CITY AND SOUTHWESTERN COMMUNITY COLLEGE DISTRICT, FOR YOUTH SAILING CAMPS AT THE NATIONAL CITY AQUATIC CENTER DURING JUNE 2017. (Community Services) ACTION: Adopted. See above. COMMUNITY DEVELOPMENT LANDSCAPE MAINTENANCE DISTRICT NO. 1 (MILE OF CARS) (406-2-8) 16. Resolution No. 2017-84. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE ANNUAL REPORT FOR LANDSCAPE MAINTENANCE DISTRICT NO. 1 (MILE OF CARS) FOR FISCAL YEAR 2017/18. (Planning) ACTION: Adopted. See above. COMMUNITY DEVELOPMENT LANDSCAPE MAINTENANCE DISTRICT NO. 1 (MILE OF CARS) (406-2-8) 17. Resolution No. 2017-85. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY INITIATING PROCEEDINGS FOR THE LEVY AND COLLECTION OF ASSESSMENTS FOR LANDSCAPE MAINTENANCE DISTRICT NO. 1 (MILE OF CARS) FOR FISCAL YEAR 2017/18. (Planning) ACTION: Adopted. See above. COMMUNITY DEVELOPMENT LANDSCAPE MAINTENANCE DISTRICT NO. 1 (MILE OF CARS) (406-2-8) 18. Resolution No. 2017-86. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING ON JUNE 20, 2017 AND TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPE MAINTENANCE DISTRICT NO. 1 (MILE OF CARS) FOR FISCAL YEAR 2017/18. (Planning) ACTION: Adopted. See above. 35 of 585 13 Book 99 / Page 99 06-06-2017 CONSENT CALENDAR (cont.) FINANCIAL MANAGEMENT 2015-2016 (204-1-31) 19. Investment Report for the quarter ended March 31, 2017. (Finance) ACTION: Filed. See above. WARRANT REGISTER JULY 2016 — JUNE 2017 (202-1-31) 20. Warrant Register #42 for the period of 04/12/17 through 04/18/17 in the amount of $1,199,110.67. (Finance) ACTION: Ratified. See above. WARRANT REGISTER JULY 2016 — JUNE 2017 (202-1-31) 21. Warrant Register #43 for the period of 04/19/17 through 04/25/17 in the amount of $1,823,234.15. (Finance) ACTION: Ratified. See above. PUBLIC HEARINGS SUBDIVISIONS / VARIANCES 2017 (405-1-13) 22. Public Hearing — Tentative Subdivision Map for a mixed -use condominium project to be located at 341 East 30th Street. (Applicant: Raintree Residential, LLC) (Case File 2016-23 S) (Planning) RECOMMENDATION: Staff concurs with the decision of the Planning Commission. TESTIMONY: The Civil Engineer appeared on behalf of the Applicant and responded to questions. ACTION: Motion by Cano, seconded by Mendivil, to close the Public Hearing and approve the Tentative Subdivision Map. Carried by unanimous vote. ABATEMENT WEED 2015 (402-3-16) 23. Public Hearing — Weed Abatement: The Public Hearing scheduled for June 6th was not held due to notification and posting errors. This item will be posted and re -noticed for a Public Hearing to be held on June 20, 2017. (Fire) CONTRACT (C90-26) 24. Public Hearing to consider a rate adjustment for refuse services including recycling and yard waste disposal provided to National City residences and businesses by EDCO Disposal Corporation. (Engineering/Public Works) RECOMMENDATION: Hold the Public Hearing. TESTIMONY: A representative from EDCO spoke on behalf of the applicant and responded to questions. It was noted for the record that four letters of protest were received and are on file in the Office of the City Clerk. ACTION: Motion by Cano, seconded by Mendivil, to close the Public Hearing. Carried by unanimous vote. 36 of 585 14 Book 99 / Page 100 06-06-2017 NEW CONSENT RESOLUTIONS CONTRACT (C90-26) 25. Resolution No. 2017-87. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING AN AMENDMENT TO THE AGREEMENT BETWEEN THE CITY AND EDCO DISPOSAL CORPORATION TO INCREASE THE MONTHLY RATES FOR REFUSE COLLECTION SERVICES. (Engineering/Public Works) RECOMMENDATION: Adopt The Resolution. TESTIMONY: None. ACTION: Motion by Mendivil, seconded by Sotelo-Solis, to adopt the Resolution. Carried by unanimous vote. CONTRACT (C2010-68) 26. Resolution No. 2017-88. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, 1) AUTHORIZING THE MAYOR TO EXECUTE A TWO- YEAR AGREEMENT WITH PROJECT PROFESSIONALS CORPORATION FOR A NOT -TO -EXCEED AMOUNT OF $2,000,000 TO PROVIDE ON -CALL PROJECT SUPPORT SERVICES FOR NATIONAL CITY'S CAPITAL IMPROVEMENT PROGRAM (CIP), INCLUDING, BUT NOT LIMITED TO, PROJECT MANAGEMENT; ENGINEERING; CONSTRUCTION MANAGEMENT, INSPECTIONS AND CERTIFIED PAYROLL; PLAN REVIEWS; CONSTRUCTABILITY REVIEWS; COMMUNITY OUTREACH AND COMMUNICATIONS; AND LEGAL SUPPORT FOR PUBLIC WORKS CONTRACTS AND/OR DISPUTES; AND 2) AUTHORIZING THE CITY MANAGER TO EXECUTE ANY PROJECT -SPECIFIC SUPPLEMENTAL AGREEMENTS, AS MAY BE REQUIRED FOR GRANT FUNDED PROJECTS. (Engineering/Public Works) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None ACTION: Motion by Rios, seconded by Sotelo-Solis, to adopt the Resolution. Carried by the following vote, to -wit: Ayes: Mendivil, Morrison, Rios, Sotelo-Solis. Nays: None. Abstain: Cano. Absent: None. CONTRACT (C2014-14) 27. Resolution No. 2017-89. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, 1) AUTHORIZING THE MAYOR TO EXECUTE A TWO- YEAR AGREEMENT WITH INNOVATIVE CONSTRUCTION CONSULTING SERVICES (ICCS) FOR A NOT -TO -EXCEED AMOUNT OF $2,000,000 TO PROVIDE ON -CALL PROJECT SUPPORT SERVICES FOR NATIONAL CITY'S CAPITAL IMPROVEMENT PROGRAM (CIP), INCLUDING, BUT NOT LIMITED TO, PROJECT MANAGEMENT; ENGINEERING; CONSTRUCTION MANAGEMENT, INSPECTIONS AND CERTIFIED PAYROLL; PLAN REVIEWS; CONSTRUCTABILITY REVIEWS; COMMUNITY OUTREACH AND COMMUNICATIONS; AND 2) AUTHORIZING THE CITY MANAGER TO EXECUTE ANY PROJECT -SPECIFIC SUPPLEMENTAL AGREEMENTS, AS MAY BE REQUIRED FOR GRANT FUNDED PROJECTS. (Engineering/Public Works) 37 of 585 15 Book 99 / Page 101 06-06-2017 NON CONSENT RESOLUTIONS (cont.) CONTRACT (C2014-14) 27. Resolution No. 2017-89 (continued) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None ACTION: Motion by Sotelo-Solis, seconded by Mendivil, to adopt the Resolution. Carried by unanimous vote. CONTRACT (C2014-15) 28. Resolution No. 2017-90. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, 1) AUTHORIZING THE MAYOR TO EXECUTE A TWO- YEAR AGREEMENT WITH STC TRAFFIC, INC. FOR A NOT -TO -EXCEED AMOUNT OF $2,000,000 TO PROVIDE ON -CALL PROJECT SUPPORT SERVICES FOR NATIONAL CITY'S CAPITAL IMPROVEMENT PROGRAM (CIP), INCLUDING, BUT NOT LIMITED TO, PROJECT MANAGEMENT; ENGINEERING; ARCHITECTURE; CONSTRUCTION MANAGEMENT AND INSPECTIONS; TRAFFIC SIGNAL COMMUNICATIONS INFRASTRUCTURE AND SYSTEMS INTEGRATION; LAND SURVEYING; ENVIRONMENTAL ASSESSMENTS; GEOTECHNICAL; CONSTRUCTION SUPPORT; PLAN REVIEWS; COMMUNITY OUTREACH AND COMMUNICATIONS; AND 2) AUTHORIZING THE CITY MANAGER TO EXECUTE ANY PROJECT -SPECIFIC SUPPLEMENTAL AGREEMENTS, AS MAY BE REQUIRED FOR GRANT FUNDED PROJECTS. (Engineering/Public Works) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None ACTION: Motion by Sotelo-Solis, seconded by Cano, to adopt the Resolution. Carried by unanimous vote. CONTRACT (C2004-51) 29. Resolution No. 2017-91. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, 1) AUTHORIZING THE MAYOR TO EXECUTE A TWO- YEAR AGREEMENT WITH D-MAX ENGINEERING, INC. FOR A NOT -TO - EXCEED AMOUNT OF $2,000,000 TO PROVIDE ON -CALL PROJECT SUPPORT SERVICES FOR NATIONAL CITY'S CAPITAL IMPROVEMENT PROGRAM (CIP), INCLUDING, BUT NOT LIMITED TO, PROJECT MANAGEMENT; ENGINEERING; ENVIRONMENTAL PLANNING, COMPLIANCE AND ASSESSMENTS; CONSTRUCTION SUPPORT; PLAN REVIEWS; COMMUNITY OUTREACH AND COMMUNICATIONS; AND 2) AUTHORIZING THE CITY MANAGER TO EXECUTE ANY PROJECT -SPECIFIC SUPPLEMENTAL AGREEMENTS, AS MAY BE REQUIRED FOR GRANT FUNDED PROJECTS. (Engineering/Public Works) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None ACTION: Motion by Cano, seconded by Rios, to adopt the Resolution. Carried by unanimous vote. 38 of 585 16 Book 99 / Page 102 06-06-2017 NON CONSENT RESOLUTIONS (cont.) CONTRACT (C2010-69) 30. Resolution No. 2017-92. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, 1) AUTHORIZING THE MAYOR TO EXECUTE A TWO- YEAR AGREEMENT WITH KIMLEY-HORN AND ASSOCIATES, INC. FOR A NOT -TO -EXCEED AMOUNT OF $2,000,000 TO PROVIDE ON -CALL PROJECT SUPPORT SERVICES FOR NATIONAL CITY'S CAPITAL IMPROVEMENT PROGRAM (CIP), INCLUDING, BUT NOT LIMITED TO, PROJECT MANAGEMENT; ENGINEERING; ARCHITECTURE; LAND SURVEYING; ENVIRONMENTAL ASSESSMENTS; GEOTECHNICAL; CONSTRUCTION SUPPORT; PLAN REVIEWS; COMMUNITY OUTREACH AND COMMUNICATIONS; AND 2) AUTHORIZING THE CITY MANAGER TO EXECUTE ANY PROJECT -SPECIFIC SUPPLEMENTAL AGREEMENTS, AS MAY BE REQUIRED FOR GRANT FUNDED PROJECTS. (Engineering/Public Works) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None ACTION: Motion by Rios, seconded by Mendivil, to adopt the Resolution. Carried by unanimous vote. CONTRACT (C2017-48) 31. Resolution No. 2017-93. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, 1) AWARDING A CONTRACT TO PALM ENGINEERING CONSTRUCTION COMPANY, INC. IN THE NOT -TO -EXCEED AMOUNT OF $1,780,325.57 FOR THE WESTSIDE MOBILITY IMPROVEMENTS PROJECT, CIP NO. 17-04; 2) AUTHORIZING A 15% CONTINGENCY IN THE AMOUNT OF $267,048.83 FOR ANY UNFORESEEN CHANGES; AND 3) AUTHORIZING THE MAYOR TO EXECUTE THE CONTRACT. (Engineering/Public Works) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None ACTION: Motion by Cano, seconded by Mendivil, to adopt the Resolution. Carried by unanimous vote. SUBDIVISIONS / VARIANCES 2017 (405-1-13) 32. Resolution No. 2017-94. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A TENTATIVE SUBDIVISION MAP FOR A MIXED -USE CONDOMINIUM PROJECT TO BE LOCATED AT 341 EAST 30TH STREET. (Applicant: Raintree Residential, LLC) (Case File 2016-23 S) (Planning) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None ACTION: Staff noted a correction in Condition No. 4, which should be an expiration of two years rather than one. Motion by Sotelo-Solis, seconded by Mendivil, to adopt the Resolution. Carried by unanimous vote. 39 of 585 17 Book 99 / Page 103 06-06-2017 NON CONSENT RESOLUTIONS (cont.) STREET VACATION ADMIN 2011 — 2020 (902-26-6 33. Resolution No. 2017-95. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE EXECUTION OF AN ORDER OF VACATION OF THE SOUTHERLY 40 FEET OF EAST 15TH STREET AND THE ALLEY BETWEEN EAST 15TH AND 16TH STREETS RELATED TO THE PARK LOFTS PROJECT LOCATED AT 1509, 1531, 1535 NATIONAL CITY BLVD. AND 49 EAST 16TH STREET. (Applicant: Paradise Creek Holding Corporation) (Case File No. 2012-03 SC) (Planning) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None ACTION: Motion by Rios, seconded by Cano, to adopt the Resolution. Carried by unanimous vote. BUDGET FY 2017-2018 (206-1-33) 34. Resolution No. 2017-96. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING A BUDGET FOR FISCAL YEAR 2018. (Finance) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None ACTION: Motion by Sotelo-Solis, seconded by Rios, to adopt the Resolution. Carried by the following vote, to -wit: Ayes: Mendivil, Rios, Sotelo-Solis. Nays: Cano, Morrison. Abstain: None. Absent: None. BUDGET FY 2017-2018 (206-1-33) 35. Resolution No. 2017-97. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING AND ADOPTING THE ANNUAL APPROPRIATION LIMIT FOR FISCAL YEAR 2018 OF $59,313,300. (Finance) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None ACTION: Motion by Sotelo-Solis, seconded by Mendivil, to adopt the Resolution. Carried by unanimous vote. NEW BUSINESS CONDITIONAL USE PERMITS 2017 (403-32-1) 36. Notice of Decision — Planning Commission approval of a Conditional Use Permit for beer and wine sales at Crab Fever located at 1420 East Plaza Boulevard Suite 2D. (Applicant: Steve Rawlings) (Case File 2017-07 CUP) (Planning) RECOMMENDATION: Staff concurs with the decision of the Planning Commission and recommends that the Notice of Decision be filed. TESTIMONY: None ACTION: Motion by Rios, seconded by Cano, to approve staff recommendation. Carried by unanimous vote. EXPARTE DISCLOSURE: Mayor Morrison and Member Rios disclosed that they had Exparte contact with the applicant. 40 of 585 18 Book 99 / Page 104 06-06-2017 NEW BUSINESS (cont.) POLITICAL SUPPORT ADMIN (102-4-1) 37. City Council discussion and direction on proposed Assembly Bill (AB) 1250, Counties and Cities: Contracts for Personal Services (Jones -Sawyer). (Human Resources) RECOMMENDATION: Direct staff to submit a letter in opposition to Assembly Bill 1250. TESTIMONY: None ACTION: Motion by Morrison, seconded by Cano, to oppose AB1250. Carried by the following vote, to -wit: Ayes: Cano, Mendivil, Morrison. Nays: Rios, Sotelo-Solis. Abstain: None. Absent: None. B. COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY NO AGENDA ITEMS STAFF REPORTS - None MAYOR AND CITY COUNCIL City Treasurer Mitch Beauchamp spoke about the erosion of our budget fund balance and the need to re-evaluate our Civil Service System and what our focus is as a city. Vice Mayor Mendivil encouraged everyone to continue to move forward every day in every way with the Together We Can Campaign? Member Sotelo-Solis thanked staff for their work and presentations and complemented the public for their participation and comments. Motion by Sotelo-Solis, seconded by Rios, that staff bring back for discussion at the meeting of June 19, language for the two Welcoming Resolutions, examples of Sanctuary City Resolutions from other cities and the language for Senate Bill 54. Substitute Motion by Morrison, seconded by Mendivil that: "We would bring on the 19th SB54 information because that is easily available, both sides I think are easily available and hopefully by the time we actually put out the agenda itself, we'll see if it's changed any by that time because we know that things are changing because that's a fluid bill also, but I would go with those three coming back on the 19th. We could address the Sanctuary Cities at a later time when we give staff more time". Member Rios requested clarification of the Substitute Motion. The Motion was clarified that; "if at the end of the 19th, if we still feel we still want to address Sanctuary Cities, we have them bring it back". Motion by Sotelo-Solis, seconded by Rios, to amend the Original Motion to be the Substitute Motion as clarified. The motion was further clarified that, if we don't come to a decision on June 19th, and have had an opportunity to look at Sanctuary Cities that it be docked the first meeting in August. 41 of 585 19 Book 99 / Page 105 06-06-2017 MAYOR AND CITY COUNCIL (cont.) A request was made to restate Original Motion as clarified. The motion was restated to be, to reintroduce the Welcoming City Resolution original and amended, as well as language around SB 54 and if there is no Resolution at the end of that meeting of June 19th, that we will have continued dialogue and have potential conversation around Sanctuary Cities. It was further clarified that; if the City Council doesn't come to a conclusion on June 19th, what staff would bring back on August 1st would be examples of Sanctuary City's Resolution from various cities. Original Motion carried by the following vote, to -wit: Ayes: Mendivil, Morrison, Rios, Sotelo. Nays: Cano. Abstain: None. Absent: None. Member Rios pointed out that the San Diego Association of Governments (SANDAG) has adopted procedural changes on future grant requests and National City is one of the few that meets all of the basic criterion required. Member Rios also praised the recent Aquatic Center Event put on by Community Services. Member Cano reminded everyone about the Mabuhay Festival scheduled for June 10th in Kimball Park. Mayor Morrison reported that he attended the National Association of Regional Councils earlier in the day. Mayor Morrison went on the say: "We saw a good exercise tonight, a lot of individuals coming out. You know it certainly was not..did not speak for the entire community. It was a planned group tonight which spoke for our community and part of a lot of other communities also. We need to be listening to everybody and understanding all the voices that are out there. There's a lot of voices, a lot of concerns and not always does the loudest voice end up being the only voice". ADJOURNMENT Motion by Sotelo-Solis, seconded by Cano, to adjourn the meeting to the next Adjourned Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City — Downtown Initiatives Workshop to be held Tuesday, June 20, 2017 at 5:00 p.m. at the Council Chambers, National City, California. Carried by unanimous vote Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City to be held Tuesday, June 20, 2017 at 6:00 p.m. at the Council Chambers, National City, California. 42 of 585 20 The meeting closed at 9:33 p.m. Book 99 / Page 106 06-06-2017 City Clerk The foregoing minutes were approved at the Regular Meeting of December 19, 2017. Mayor CITY COUNCIL SUMMER LEGISLATIVE RECESS July 4, 2017 - City Council Meeting - Dispensed With July 18, 2017 - City Council Meeting - Dispensed 43 of 585 21 Book 99 / Page 107 06-06-2017 THIS PAGE IS LEFT INTENTIONALLY BLANK 44 of 585 22 EXHIBIT `L' ROLL CALL CLOSED SESSION CALIFORNIA NATIONAL CITy INCORPORATED AGENDA OF A SPECIAL MEETING CITY COUNCIL OF THE CITY OF NATIONAL CITY Main Conference Room Civic Center 1243 National City Boulevard National City, California Special Meeting - Tuesday, June 6, 2017 — 5:00 p.m. CITY COUNCIL 1. Conference with Legal Counsel — Pending Litigation Existing Litigation under Paragraph (1) of Subdivision (d) of Government Code Section 54956.9 Chris Reimer v. City of National City, et al. SDSC Case No. 37-2015-000-38580 2. Conference with Legal Counsel — Pending Litigation Existing Litigation under Paragraph (1) of Subdivision (d) of Government Code Section 54956.9 Chris Shilling v. City of National City, et al. SDSC Case No. 37-2017-00016618 3. Conference with Legal Counsel — Potential Litigation Significant Exposure to Litigation under Paragraph (2) of Subdivision (d) of Government Code Section 54956.9 One Potential Case 4. Conference with Real Property Negotiators Government Code Section 54956.8 Properties: 420 West 21st Street (A.P.N. 559-125-16) 140 West 18th Street (A.P.N. 560-202-01) Agency Negotiator: Brad Raulston, Deputy City Manager Negotiating Parties: Isfahan, LLC and Phomsavanh Sayheune Under Negotiation: Price and Terms of Payment ADJOURNMENT Next Regular City Council Meeting: Tuesday, June 6, 2017, 6:00 p.m., City Council Chambers, Civic Center 45 of 585 23 Book 99 / Page 132 08-01-2017 DRAFT DRAFT DRAFT MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY August 1, 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 5:04 p.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council / Board members present: Cano, Mendivil, Morrison, Rios, Sotelo-Solis. Administrative Officials present: Dalla, Deese, Duong, Morris -Jones, Manganiello, Parra, Raulston, Roberts Rodriguez, Stevenson, Vergara, Williams, Ybarra. Others present: Student Council Representative Jose Estrada. PLEDGE OF ALLEGIANCE TO THE FLAG BY MAYOR RON MORRISON PUBLIC COMMENTS — None. PROCLAMATIONS — None. PRESENTATIONS — None. CITY COUNCIL CONSENT CALENDAR ADOPTION OF CONSENT CALENDAR. Item No. 1 (NCMC), Item No. 2 (Minutes), Item Nos. 3 through 16 (Resolution No. 2017-136 through 2017-149), Item No. 17 (Report), Item Nos. 18 through 23 (Warrant Registers). Motion by Rios, seconded by Sotelo-Solis, to pull Item No. 14 and approve remaining Consent Calendar Items. Carried by unanimous vote. MUNICIPAL CODE 2017 (506-2-32) 1. 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) ACTION: Approved. See above. APPROVAL OF THE MINUTES 2. APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY OF JUNE 20, 2017. (City Clerk) ACTION: Approved. See above. 46 of 585 24 Book 99 / Page 133 08-01-2017 CONSENT CALENDAR (cont.) HUMAN RESOURCES DEPT ADMIN (1104-01-02) 3. Resolution No. 2017-136. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A SALARY SCHEDULE FOR THE MANAGEMENT EMPLOYEE GROUP FOR FISCAL YEAR 2018 IN COMPLIANCE WITH THE REQUIREMENTS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS), WITH THE REMOVAL OF THE ASSISTANT POLICE CHIEF CLASSIFICATION. (Human Resources) ACTION: Adopted. See above. HUMAN RESOURCES DEPT ADMIN (1104-01-02) 4. Resolution No. 2017-137. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A SALARY SCHEDULE FOR THE FIREFIGHTERS ASSOCIATION EMPLOYEE GROUP FOR FISCAL YEAR 2018, EFFECTIVE AUGUST 1, 2017, IN COMPLIANCE WITH THE REQUIREMENTS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS). (Human Resources) ACTION: Adopted. See above. CONTRACT (C2017-41) 5. Resolution No. 2017-138. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, 1) ACCEPTING AN URBAN & COMMUNITY FORESTRY CALIFORNIA CLIMATE INVESTMENTS (CCI) GRANT PROGRAM AWARD IN THE AMOUNT OF $650,800 THROUGH THE CALIFORNIA DEPARTMENT OF FORESTRY AND FIRE PROTECTION (CAL FIRE) FOR AN URBAN FOREST EXPANSION AND IMPROVEMENT PROJECT 2) ACCEPTING THE TERMS OF THE GRANT AGREEMENT; 3) AUTHORIZING THE CITY MANAGER TO EXECUTE THE GRANT AGREEMENT; AND 4) AUTHORIZING THE APPROPRIATION OF $650,800 AND CORRESPONDING REVENUE BUDGET IN THE ENGINEERING GRANTS FUND. (Engineering/Public Works) ACTION: Adopted. See above. CONTRACT (C2017-42) 6. Resolution No. 2017-139. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO SIGN AN ENCROACHMENT PERMIT AND AGREEMENT WITH SOUTHERN HIGHLANDS PARTNERS, LLC, FOR THE INSTALLATION OF AN AMERICANS WITH DISABILITIES ACT (ADA) COMPLIANT PEDESTRIAN ACCESS RAMP PARTIALLY WITHIN THE PUBLIC RIGHT-OF-WAY FOR 2525 HIGHLAND AVENUE (SOUTHERN HIGHLANDS ASSISTED LIVING FACILITY). (Engineering/Public Works) ACTION: Adopted. See above. 47 of 585 25 Book 99 / Page 134 08-01-2017 CONSENT CALENDAR (cont.) PARKING AND TRAFFIC CONTROL ADMIN 2017 (801-2-37) 7. Resolution No. 2017-140. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE ISSUANCE OF A SPECIAL DRIVEWAY PERMIT FOR THE RESIDENTIAL PROPERTY LOCATED AT 641 E. 5TH STREET. (Engineering/Public Works) ACTION: Adopted. See above. PARKING AND TRAFFIC CONTROL ADMIN 2017 (801-2-37) 8. Resolution No. 2017-141. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF 16 FEET OF RED CURB "NO PARKING" ON THE EAST SIDE OF HIGHLAND AVENUE, SOUTH OF E. 28TH STREET, TO ENHANCE VISIBILITY AND ACCESS FROM E. 28TH STREET ONTO HIGHLAND AVENUE AND ENSURE COMPLIANCE WITH ON -STREET PARKING DESIGN STANDARDS (TSC NO. 2017-15). (Engineering/Public Works) ACTION: Adopted. See above. PARKING AND TRAFFIC CONTROL ADMIN 2017 (801-2-37) 9. Resolution No. 2017-142. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF 20 FEET OF RED CURB "NO PARKING" ON THE SOUTH SIDE OF E. 14TH STREET, WEST OF STANCREST LANE, AND 10 FEET OF RED CURB "NO PARKING" EAST OF STANCREST LANE, TO ENHANCE VISIBILITY AND ACCESS FROM STANCREST LANE ONTO E. 14TH STREET (TSC NO. 2017-16). (Engineering/Public Works) ACTION: Adopted. See above. PARKING AND TRAFFIC CONTROL ADMIN 2017 (801-2-37) 10. Resolution No. 2017-143. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING, 1) INSTALLATION OF 40 FEET OF RED CURB "NO PARKING" ON THE WEST SIDE OF ALSTON AVENUE, NORTH OF NEWBERRY STREET; AND 2) INSTALLATION OF YIELD CONTROL FOR THE EASTBOUND AND WESTBOUND NEWBERRY STREET APPROACHES TO THE INTERSECTION AT ALSTON AVENUE (TSC NO. 2017-17). (Engineering/Public Works) ACTION: Adopted. See above. PARKING AND TRAFFIC CONTROL ADMIN 2017 (801-2-37) 11. Resolution No. 2017-144. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF 20 FEET OF BLUE CURB DISABLED PERSONS PARKING SPACE IN FRONT OF THE PENTECOSTAL MISSIONARY CHURCH LOCATED AT 2410 E. 8TH STREET, AND 33 FEET OF RED CURB NO PARKING ADJACENT TO THE EASTERN CHURCH DRIVEWAY TO ENHANCE VISIBILITY AND SAFETY FOR VEHICLES EXITING THE DRIVEWAY ONTO E. 8TH STREET (TSC NO. 2017-18). (Engineering/Public Works) ACTION: Adopted. See above. 48 of 585 26 Book 99 / Page 135 08-01-2017 CONSENT CALENDAR (cont.) FIRE DEPT ADMIN (305-01-01) 12. Resolution No. 2017-145. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ACCEPTING FUNDS IN THE AMOUNT OF $2,500 FROM SDG&E'S 2017 SAFE SAN DIEGO INITIATIVE THROUGH THE BURN INSTITUTE, A 501(C)(3) NON-PROFIT ORGANIZATION, FOR THE NATIONAL CITY COMMUNITY EMERGENCY RESPONSE TEAM (CERT) TO RECRUIT, ADMINISTER, AND PROMOTE CERT TRAINING IN NATIONAL CITY, AND AUTHORIZING THE ESTABLISHMENT OF AN APPROPRIATION AND CORRESPONDING REVENUE BUDGET. (Fire) ACTION: Adopted. See above. CONTRACT (C2009-105) 13. Resolution No. 2017-146. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY WAIVING THE BIDDING PROCESS BASED ON SPECIAL CIRCUMSTANCES, AND AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH DAY WIRELESS SYSTEMS, IN AN AMOUNT NOT TO EXCEED $44,341, TO PROVIDE MAINTENANCE, SERVICE AND INSTALLATION OF THE CITY'S RADIO COMMUNICATIONS EQUIPMENT, MAINTAIN INFRASTRUCTURE FOR MOBILE AND PORTABLE RADIOS, ON CALL SERVICES AND OTHER PROJECTS AS NEEDED FROM JULY 1, 2017 THROUGH JUNE 30, 2018 WITH THE OPTION OF THREE (3) ONE YEAR EXTENSIONS. (Police) ACTION: Adopted. See above. CONTRACT (C2011-03) GRANT / PUBLIC SAFETY (204-4-27) 14. Resolution No. 2017-147. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY RATIFYING AND AUTHORIZING THE ACCEPTANCE OF THE 2016 CITIZENS OPTION FOR PUBLIC SAFETY (COPS) PROGRAM GRANT IN THE AMOUNT OF $100,000.00 TO PURCHASE POLICE RADIOS, PANASONIC TOUGHBOOK COMPUTERS, TASERS, POLICE SERVICE HELMETS, CAPITAL PROJECT THAT SUPPORTS FRONT LINE POLICE SERVICES, PEPPERBALL LANCHERS, AND OTHER ESSENTIAL POLICE EQUIPMENT AS NEEDED AND TO RATIFY AND AUTHORIZE THE ESTABLISHMENT OF AN APPROPRIATION AND CORRESPONDING REVENUE BUDGET IN THE AMOUNT OF THE GRANT WITHIN THE SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND (SLESF). (Police) ACTION: Motion by Rios, seconded by Sotelo-Solis, to adopt the Resolution. Carried by unanimous vote. CONTRACT (C2011-03) GRANT / PUBLIC SAFETY (204-4-27) 15. Resolution No. 2017-148. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE ACCEPTANCE OF THE FY 2016 OPERATION STONEGARDEN GRANT IN THE AMOUNT $44,000, AND 49 of 585 27 Book 99 / Page 136 08-01-2017 CONSENT CALENDAR (cont.) CONTRACT (C2011-03) GRANT / PUBLIC SAFETY (204-4-27) 15. Resolution No. 2017-148 (continued). AUTHORIZING THE CHIEF OF POLICE TO EXECUTE THE AGREEMENT FOR THE AWARD OF THE GRANT FUNDS AND SIGN GRANT DOCUMENTS INDEMNIFYING THE GRANTING AGENCY AGAINST ANY LIABILITY ARISING FROM GRANT RELATED OPERATIONS, AND AUTHORIZING THE ESTABLISHMENT OF THE POLICE DEPARTMENT GRANTS FUND APPROPRIATIONS AND A CORRESPONDING REVENUE BUDGET, IN THE AMOUNT OF THE GRANT FOR REIMBURSEMENT OF OVERTIME, FRINGE BENEFITS AND MILEAGE FOR PROGRAMMATIC OPERATIONS. (Police) ACTION: Adopted. See above CONTRACT (C2017-43) CITY ACQUISITION OR RENTAL / PROPERTY ADMIN (1001-1-6) 16. Resolution No. 2017-149. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY RATIFYING THE PURCHASE AND SALE AGREEMENT EXECUTED ON JULY 11, 2017 AND AUTHORIZING THE PURCHASE OF REAL PROPERTY LOCATED AT 420 W. 21ST STREET FROM ISFAHAN, INC. FOR A TOTAL SALES PRICE OF $355,000 AND THE PAYMENT OF CLOSING COSTS NOT TO EXCEED $2,000. (Housing & Economic Development) ACTION: Adopted. See above FINANCIAL MANAGEMENT 2017 — 2018 (204-1-32) 17. Investment transactions for the month ended May 31, 2017. (Finance) ACTION: Accepted and Filed. See above WARRANT REGISTER JULY 2016 — JUNE 2017 (202-1-31) 18. Warrant Register #47 for the period of 05/17/17 through 05/23/17 in the amount of $1,710,351.94. (Finance) ACTION: Ratified. See above. WARRANT REGISTER JULY 2016 — JUNE 2017 (202-1-31) 19. Warrant Register #48 for the period of 05/24/17 through 05/30/17 in the amount of $2,071,450.07. (Finance) ACTION: Ratified. See above. WARRANT REGISTER JULY 2016 — JUNE 2017 (202-1-31) 20. Warrant Register #49 for the period of 05/31/17 through 06/06/17 in the amount of $2,353,463.63. (Finance) ACTION: Ratified. See above. WARRANT REGISTER JULY 2016 — JUNE 2017 (202-1-31) 21. Warrant Register #50 for the period of 06/07/17 through 06/13/17 in the amount of $151,587.83. (Finance) ACTION: Ratified. See above. 50 of 585 28 Book 99 / Page 137 08-01-2017 CONSENT CALENDAR (cont.) WARRANT REGISTER JULY 2016 — JUNE 2017 (202-1-31) 22. Warrant Register #51 for the period of 06/14/17 through 06/20/17 in the amount of $1,993,718.19. (Finance) ACTION: Ratified. See above. WARRANT REGISTER JULY 2016 — JUNE 2017 (202-1-31) 23. Warrant Register #52 for the period of 06/21/17 through 06/27/17 in the amount of $762,526.43. (Finance) ACTION: Ratified. See above. PUBLIC HEARINGS STREET VACATION ADMIN 2011-2020 (902-26-06) 24. Public Hearing - Proposed 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 concurs with the Planning Commission determination and recommends approval of the street vacation. TESTIMONY: Laren Rodriguez, National City, spoke in support but expressed concern about the impact off the closing on the alley where she parks. Chris Carson, representing the National School District, expressed concern about any costs to the District. Miguel Flores, National City, expressed concerns about erosion, increased noise and congestion. ACTION: Motion by Sotelo-Solis, seconded by Mendivil, to close the Public Hearing. Carried by unanimous vote NON CONSENT RESOLUTIONS STREET VACATION ADMIN 2011-2020 (902-26-06) 25. Resolution No. 2017-150. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE EXECUTION OF AN ORDER OF 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: Adopt the Resolution. TESTIMONY: Ralf Gonzalez, Engineer for the project, ACTION: Motion by Sotelo-Solis, seconded by Mendivil, to adopt the Resolution with findings and conditioned upon approval of the project plans prior to closure of the street. Carried by unanimous vote. 51 of 585 29 Book 99 / Page 138 08-01-2017 NON CONSENT RESOLUTIONS (cont.) HUMAN RESOURCES DEPT ADMIN (1104-01-02) 26. Resolution No. 2017- 151. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A SALARY SCHEDULE FOR THE EXECUTIVE EMPLOYEE GROUP FOR FISCAL YEAR 2018 IN COMPLIANCE WITH THE REQUIREMENTS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CALPERS), INCREASING THE BANDS FOR DEPUTY CITY MANAGER AND POLICE CHIEF; AND ADDING A BAND FOR ASSISTANT POLICE CHIEF. (Human Resources) RECOMMENDATION: Adopt the Resolution approving the Fiscal Year 2018 compensation plan for the Executive employee group. TESTIMONY: None. ACTION: Motion by Sotelo-Solis, seconded by Mendivil, to adopt the Resolution. Carried by unanimous vote. NEW BUSINESS TEMPORARY USE PERMIT 2017 (203-1-33) 27. Temporary Use Permit - C&M Motors Inc. requesting to use the vacant lot located at 21 West 7th Street for storage of commercial trucks from August 1, 2017 thru August 1, 2018 with no waiver of fees. (Neighborhood Services) RECOMMENDATION: Approve the Application for a Temporary Use Permit for a period of six months ending on January 31, 2018. TESTIMONY: Michael Torti, Vice President of C & M Motors responded to questions. ACTION: Motion by Sotelo-Solis, seconded by Rios to continue. Substitute Motion by Rios, seconded by Morrison to approve for 6 months from 08-1-2017 to 02-1-2018 with no extension. Carried by unanimous vote. CONDITIONAL USE PERMIT 2017 (403-32-1) 28. Notice of Decision - Planning Commission approval of a Conditional Use Permit for beer and wine sales at Broken Yolk to be located at 3030 Plaza Bonita Road Suite 1106. (Applicant: Steve Rawlings) (Case File 2017-15 CUP) (Planning) RECOMMENDATION: Staff concurs with the decision of the Planning Commission and recommends that the Notice of Decision be filed. TESTIMONY: None. ACTION: Motion by Rios, seconded by Cano, to file. Carried by unanimous vote. 52 of 585 30 Book 99 / Page 139 08-01-2017 COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY CONSENT RESOLUTIONS- HOUSING AUTHORITY CONTRACT (C2017-72) 29. Resolution No. 2017-56. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A SUBORDINATION AGREEMENT WITH JONES LANG LASALLE MULTIFAMILY, LLC, SUBORDINATING THE PROJECT DEED OF TRUST THAT SECURES THE DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS (TENANT RESTRICTIONS) ON SUMMERCREST APARTMENTS LOCATED AT 2721 PLAZA BOULEVARD IN NATIONAL CITY. (Housing & Economic Development) RECOMMENDATION: Staff recommends the adoption of a resolution to execute the Subordination Agreement. TESTIMONY: None. ACTION: Item was pulled prior to the meeting. STAFF REPORTS Police Chief Manuel Rodriguez announced that the new Assistant Police Chief for National City is Jose Tellez. MAYOR AND CITY COUNCIL Student Council Representative Jose Estrada reported that Sweetwater High School is back in session as of July 20th. He extended an invitation to everyone to attend the Back to School Night event on August 10th starting at 5:00 pm, and announced that the next meeting will be his last when the new Student Council Representative will take over. Vice Mayor Mendivil invited interested volunteers to participate in the Urban Youth Collaborative' s 8th Annual School Beautification Day on August 12th at Sweetwater High School District schools in National City. Member Sotelo-Solis extended a welcome back from the summer break, expressed thanks to the staff for all their work, welcomed the Broken Yoke Restaurant and urged everyone to go to Las Palmas Park for the National Night Out event. Member Rios congratulated new Assistant Police Chief Jose Tellez and reminded that the Relay for Life will take place starting at 6:00 p.m. on August 4th Member Cano expressed appreciation to staff for the successful projects that result in citizen complements and approval. Mayor Morrison gave an update on the Plaza Blvd sewer line project and widening projects which are in the completion stages and complimented staff for doing a good job applying for grants. 53 of 585 31 Book 99 / Page 139a 08-01-2017 CLOSED SESSION REPORT City Attorney Angil Morris -Jones reported that the City Council gave direction in closed session on 3 items by unanimous vote. ADJOURNMENT Motion by Rios, 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, August 15, 2017 at 6:00 p.m. at the Council Chambers, National City, California. Carried by unanimous vote Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City to be held Tuesday, August 15, 2017 at 6:00 p.m. at the Council Chambers, National City, California. The meeting closed at 6:29 p.m. City Clerk The foregoing minutes were approved at the Regular Meeting of December 19, 2017. Mayor 54 of 585 32 Book 99 / Page 110 06-20-2017 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 DOWNTOWN INITIATIVES WORKSHOP June 20, 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 5:07 p.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council / Board members present: Cano, Mendivil, Morrison, Rios, Sotelo-Solis. Administrative Officials present: Della, Deese, Manganiello, Morris -Jones, Parra, Raulston, Roberts, Stevenson, Williams, Ybarra. PLEDGE OF ALLEGIANCE TO THE FLAG BY MAYOR RON MORRISON SPECIFIC PLAN — DOWNTOWN (417-1-9) 1. Workshop on the Downtown Specific Plan Update and seeking direction from City Council on certain items. (City Manager) RECOMMENTATION: Receive City Council Direction. STAFF PRESENTATION: Assistant City Manager, Brad Raulston, and consultant, Mike Singleton, provided a general overview of the Specific Plan update and some proposed recommendations going forward. TESTIMONY: Nancy Estolano, National City, spoke in support of the plan but expressed concerns on behalf of herself and sixty neighboring businesses that signed a petition regarding parking issues. Marcus Bush, National City, spoke in support of the plan update but expressed concern about the housing crisis and the potential gentrification displacement of residents. Carolina Martinez, representing the Environmental Health Coalition, praised the plan but said if it doesn't address the affordable housing needs of the existing community then it is not an acceptable plan. ACTION: Members of the City Council asked questions and expressed individual concerns regarding parking, shuttle service and inclusionary housing. 55 of 585 33 Book 99 / Page 111 06-20-2017 CONTRACT (C2017-52) 2. Presentation of a mixed -use development proposal for 130 E. 8th Street in response to Request for Proposals that was issued March 15, 2017 for land owned by the former redevelopment agency (CDC -RDA). (City Manager) TESTIMONY: Andrew Malick, representing Malick Infill Development, presented his firms proposed development for the site. Liliana Robles, Chula Vista, expressed concern about the availability of affordable housing for families and children. CONTRACT (C2017-52) 3. Resolution No. 2017-102. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY MANAGER TO EXECUTE AN EXCLUSIVE NEGOTIATING AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND IDNP HOLDINGS, LLC FOR THE DEVELOPMENT OF CERTAIN REAL PROPERTY LOCATED AT 130 EAST 8TH STREET IN NATIONAL CITY. (City Manager) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None. ACTION: Motion by Cano, seconded by Sotelo-Solis, to adopt the Resolution. Carried by unanimous vote. PARKING ACTION PLAN (PAP) (801-2-39) 4. Resolution No. 2017-103. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING THE PARKING ACTION PLAN (PAP) FOR DOWNTOWN NATIONAL CITY, WHICH IS A TWO-YEAR PARKING PILOT PROGRAM TO ADDRESS EXISTING AND FUTURE PARKING DEMAND, AND DIRECTING STAFF TO TAKE ALL NECESSARY ACTIONS FOR PAP IMPLEMENTATION, INCLUDING CONTINUED PUBLIC OUTREACH, DATA COLLECTION AND REPORTING. (Engineering/Public Works) RECOMMENDATION: Adopt the Resolution. TESTIMONY: A representative from Big Ben Market expressed concerns about the impacts of the plan on their business. ACTION: Motion by Sotelo-Solis, seconded by Mendivil, to adopt the Resolution. Carried by unanimous vote. ADJOURNMENT Motion by Sotelo-Solis, seconded by Mendivil, 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, June 20, 2017 at 6:00 p.m. at the Council Chambers, National City, California. Carried by unanimous vote. 56 of 585 34 The meeting closed at 6:30 p.m. Book 99 / Page 112 06-20-2017 City Clerk The foregoing minutes were approved at the Regular Meeting of December 19, 2017. Mayor 57 of 585 35 Book 99 / Page 149 09-05-2017 DRAFT DRAFT DRAFT MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY September 5, 2017 The Special Meeting of the City Council of the City of National City was called to order at 5:00 p.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council / Board members present: Cano, Mendivil, Morrison, Rios, Sotelo-Solis. Administrative Officials present: Dalla, Deese, Morris -Jones, Raulston, Stevenson. PUBLIC COMMENTS — None OPEN SESSION CITY COUNCIL 1 Conference with Legal Counsel — Anticipated Litigation Significant Exposure to Litigation Pursuant to Government Code Section 54956.9(d)(4) One Claim: Miranda 2. Conference with Legal Counsel — Potential Litigation Significant Exposure to Litigation under Government Code Section 54956.9(d)(4) One Potential Case Members retired into Closed Session at 5:06 p.m. CLOSED SESSION 1. Conference with Legal Counsel — Anticipated Litigation Significant Exposure to Litigation Pursuant to Government Code Section 54956.9(d)(4) One Claim: Miranda 2. Conference with Legal Counsel — Potential Litigation Significant Exposure to Litigation under Government Code Section 54956.9(d)(4) One Potential Case 58 of 585 36 Book 99 / Page 150 09-05-2017 ADJOURNMENT The next Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City to be held Tuesday, September 5, 2017 at 6:00 p.m. at the Council Chamber, National City, California. City Clerk The foregoing minutes were approved at the Regular Meeting of December 19, 2017. Mayor 59 of 585 37 CC/CDC-HA Agenda 12/19/2017 — Page 60 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing the City Manager to execute an Agreement with A Reason to Survive, Inc. (ARTS) to lead the development of two creative placemaking projects that incorporate art, health and community 60 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the City Manager to execute an Agreement with A Reason to Survive, Inc. (ARTS) to lead the development of two creative placemaking projects that incorporate art, health and community engagement, located in the Westside (Old Town) neighborhood of National City funded through a $65,000 Creative California Communities grant from the California Arts Council awarded to ARTS and $65,000 in City matching funds. PREPARED BY: Stephen Manganielio PHONE? 619-336-4382 EXPLANATION: See attached. FINANCIAL STATEMENT: ACCOUNT NO, DEPARTMENT: Engineering/Public Works APPROVED BY: APPROVED: APPROVED: Funds are available in the following CIP expenditure accounts through prior City Council appropriations: 296-409-500-598-6577 (Westside Mobility Improvements) - $25,000 001-409-500-598-1 96 (loft-TOD ; Paradise Creek Park Improvements) - $40,000 ENVIRONMENTAL REVIEW: Notice of Exemption will be prepared and filed with the County Recorder's Office. ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt resolution executing an Agreement with ARTS to lead the development of two creative placemaking projects that incorporate art, health and community engagement, located in the Westside (Old Town) neighborhood of National City. BOARD f COMMISSION RECOMMENDATION: NIA ATTACHMENTS: 1. Explanation 2. Agreement 3. Resolution 61 of 585 Explanation: On December 5, 2017, City Council adopted [resolution No. 2017-237, which authorized the Mayor to execute a thirty-six month Maintenance and Operating (M&O) Agreement with A Reason to Survive, inc. (ARTS), wherein ARTS agreed to maintain and operate the City -owned property located at 200 E. 12th Street as an Arts Center for the community's benefit to enrich the lives of National City residents by providing arts, culture and educational resources. Per the terms of the M&O Agreement, ARTS is required to deliver a minimum of $125,000 in public / capital art projects per year. In support of this requirement, ARTS was successful in receiving a $65,000 Creative California Communities (CCC) grant from the California Arts Council to lead the development of two creative placemaking projects that incorporate art, health and community engagement, located in the Westside (Old Town) neighborhood of National City. The first project will construct a public gathering place and storefront renovation at the northwest corner of the intersection of Coolidge Avenue and W. 16th Street, with a focus on providing children and residents access to healthy foods. The second project will construct a public gathering place in Paradise Creek Park, with a focus on providing children and residents access to art and education. The CCC grant requires a "one-to-one" match in the amount of $65,000, for a total project cost of $130,000. Since 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, staff desires to fund the $65,000 match to assist ARTS with development of the projects for the benefit of the community. Funding for the match is available through prior City Council Capital Improvement Program (CIP) appropriations as follows: Westside Mobility Improvements grant from SANDAG - $25,000 : I TOD / Paradise Creek Park Improvements CIP - $40,000 62 of 585 AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND A REASON TO SURVIVE, INC. (ARTS) THIS AGREEMENT is entered into on this 19th day of December, 2017, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and A REASON TO SURVIVE, INC., a California non-profit corporation (ARTS). RECITALS WHEREAS, ARTS, a California non-profit corporation, 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; WHEREAS, ARTS applied for and received a $65,000 Creative California Communities (CCC) grant from the California Arts Council to lead the development of two creative placemaking projects that incorporate art, health and community engagement, located in the Westside (Old Town) neighborhood of National City, California; WHEREAS, the first project will construct a public gathering place and storefront renovation at the northwest comer of the intersection of Coolidge Avenue and W. 16th Street, with a focus on providing children and residents access to healthy foods; WHEREAS, the second project will construct a public gathering place in Paradise Creek Park, with a focus on providing children and residents access to art and education; WHEREAS, the CCC grant requires a "one-to-one" match in the amount of $65,000, for ,_ total project cti t of $130,000, and the CITY agra.. ; to fraild 'Elio $65,000 match ch to assist ARTS with development of the projects for the benefit of the community; WHEREAS, the CITY's matching funds shall only be used for project improvements located within the public rights of way; WHEREAS, the CITY and ARTS previously entered into a thirty-six month Maintenance and Operating (M&O) Agreement, dated December 5, 2017, wherein ARTS agreed to maintain and operate the City -owned property located at 200 E. 12th Street as an Arts Center for the community's benefit to enrich the lives of National City residents by providing arts, culture and educational resources; WHEREAS, per the terms of the M&O Agreement, ARTS is required to deliver a minimum of $125,000 in public / capital art projects per year; 63 of 585 WHEREAS, ARTS contribution of $65,000 towards the capital art improvements identified and funded by the CCC grant and further defined in this Agreement, would be applied towards ARTS' annual public art requirement under the M&O Agreement; WHEREAS, the CITY'S contribution of $65,OOO towards the capital art improvements identified by the CCC grant and further defined in this Agreement, shall be considered separate and distinct fiom requirements under the M&O Agreement, and therefore, will not relieve ARTS of its obligations under the M&O Agreement; WHEREAS, based on review of ARTS' performance and qualifications delivering capital art projects through community engagement, the CITY has determined that ARTS, a California non-profit corporation, is qualified by experience and ability to perform the services desired by the CITY, and ARTS is willing to perform such services; WHEREAS, the CITY has further determined that ARTS is skilled in delivering capital art projects, which beautify the community, and is capable of lifting the spirits of residents and visitors of National City; WHEREAS, ARTS agrees that upon completion of the projects, ownership of the physical works of art installed within public rights of way shall be transferred to the CITY, and ARTS waives and releases all rights of ownership to those works of art. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF ARTS. The CITY agrees to engage ARTS to provide art and design services to lead the development of two creative placemaking projects that incorporate art, health and community engagement, located in the Westside (Old Town) neighborhood of National City, California, and ARTS agrees to perform the services set forth here in accordance with all terms and conditions contained herein. ARTS represents that all services shall be performed directly by ARTS staff or Under direct supervision Gf ARTS. 2. PURPOSE. The CITY hereby commissions ARTS to oversee the conceptualization, creation, design, and community build of two creative placemaking projects as generally described in Section 4 below. ARTS hereby agrees to provide those services in conformance with the terms of this Agreement. 3. 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 June 30, 2018. 4. SCOPE OF SERVICES. ARTS will perform services as set forth in the attached Exhibit "A" to deliver two community art projects referred to as Westside / Paradise Creek Public Gathering Places (the "Work"). Standard Agreement Page 2 of 13 City of National City and Revised December 2016 ARTS 64 of 585 ARTS 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. ARTS shall keep staff and City Council advised of the progress on the project. The CITY may unilaterally, or upon request from ARTS, from time to time reduce or increase the Scope of Services to be performed by ARTS under this Agreement. Upon doing so, the CITY and ARTS 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. 5. 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. ARTS shall assign a single Project Director to provide supervision and have Overall responsibility for the progress and execution of this Agreement for ARTS. ARTS' Executive Director, thereby is designated as the Project Director for ARTS. 6. DESCRIPTION OF THE WORK, A. The first project will construct a public gathering place and storefront renovation at the northwest corner of the intersection of Coolidge Avenue and W. 16th Street, with a focus on providing children and residents access to healthy foods B. The second project will construct a public gathering place in Paradise Creek Park, with a focus on providing children and residents access to art and education. 7. PHASES OF WORK. Not applicable. 8. SCHEDULE. All work shall be completed no later than June 30, 2018. 9. COMPENSATION AND PAYMENT. The CITY shall contribute up to $65,000 in matching funds to support ARTS in meeting their CCC grant match requirement. Payment is subject to ARTS completing their share of the project improvements, which is valued at $65,000, for a total estimated project cost of $130,000. Cr mpeu ation for ARTS shall h based on monthly billings covering actual work performed. Billings shall include labor classifications, respective rates, hours worked and also materials, if any. A Budget Detail summarizing estimated project costs is presented in Exhibit "A." 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 scope of work, as determined by the CITY. ARTS 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. 10. ACCEPTABILITY OF WORK. The CITY shall decide any and all questions which may arise as to the quality or acceptability of the services performed and the manner of performance, the acceptable completion of this Agreement, and the amount of compensation due. In the event ARTS and the CITY cannot agree to the quality or acceptability of the work, the Standard Agreement Page 3 of 13 City of National City and Revised December20116 ARTS 65 of 585 manner of performance andlor the compensation payable to ARTS in this Agreement, the CITY or ARTS shall give to the other written notice. Within ten (10) business days, ARTS 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 andlor the compensation payable to ARTS. 11. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda, Reports, Maps, Drawings, Plans, Specifications, and other documents prepared by ARTS 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, ARTS hereby assigns to the CITY, and ARTS 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. ARTS shall, upon request of the CITY, execute any further document(s) necessary to further effectuate this waiver and disclaimer. ARTS agrees that the CITY may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium, or method utilize ARTS' written work product for the CITY'S purposes, and ARTS expressly waives and disclaims all rights mentioned in Section 15. Any modification or reuse by the CITY of documents, drawings, or specifications prepared by ARTS shall relieve ARTS from liability under Section 23, 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. 12. INDEPENDENT CON'I'I' ACTOR 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 ARTS nor ARTS' 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, unelr�plo went, or workers' compensation insurance. This Agreement contemplates the personal services of ARTS and the ARTS' employees, and it is recognized by the parties that a substantial inducement to the CITY for entering into this Agreement was, and is, the professional reputation and competence of ARTS and its employees. Neither this Agreement nor any interest herein may be assigned by ARTS without the prior written consent of the CITY. Nothing herein contained is intended to prevent ARTS from employing or hiring as many employees, or subconsultants, as ARTS may deem necessary for the proper and efficient performance of this Agreement. All agreements by ARTS with its subconsultants shall require the subconsultant(s) to adhere to the applicable terms of this Agreement. 13. RISK OF LOSS AND INSURANCE. ARTS shall bear all risk of loss or damage to the Work until it is delivered and installed at the site. Standard Agreement Page 4 of 13 Revised December 2016 ARTS City of National City and 66 of 585 14. REPRODUCTIONS. ARTS shall not create three-dimensional reproductions of the Work, or portions thereof, without the express, written consent of the CITY. All expenses associated with creating three-dimensional reproductions shall be borne by ARTS. 15. OWNERSHIP RIGHTS AND LICENSES. Consistent with Section 11 of this Agreement, professional artists under contract with ARTS for the purpose of performing the Work are required to adhere to the applicable terms of this Agreement, including the provisions of this Section 15 and Section 32. Ownership of all materials and concepts produced for the CITY under this Agreement, including but not limited to the completed Work, and all rights to licensing and reproductions of the Work, shall pass to and become the property of the CITY, once payment for that phase of work is made by the CITY. The CTI'Y, at its option, will store all drawings and materials that may assist with future repairs. ARTS shall waive all rights to the Work, including copyright, moral rights under the Visual Artists Rights Act, rights under the California Art Preservation Act, and any other artistic rights that may exist in the Work. 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 the Work, the compensation for which is part of the fee described above, but shall exercise no rights thereto inconsistent with the provision of this Section 15. The CITY may provide appropriate credit to ARTS on all such material, but is not obligated to do so. Any Memoranda, Reports, Maps, Drawings, Renderings, Photos, Plans, Specifications, and other documents prepared by ARTS 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. ARTS agees that the CITY may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium, or method utilize ARTS' written work product for the CITY'S purposes, and _��T, � expressly waives and disclaims any residual rights granted to it by state or federal law, including Civil Code Sections 980 through 989 relating to intellectual property and artistic works and 17 United States Code §106A and §113(d) relating to artists rights. The provisions of this Section 15 shall survive the termination of this Agreement. 16, REPAIRS. To the extent practical, all repairs and restorations made during the lifetime of ARTS shall have ARTS' approval. To the extent practical, the CITY shall give ARTS the opportunity to perform the repairs and restoration at a reasonable fee. 17. PROCESS DOCUMENTATION. ARTS shall document, photographically and in writing ("Documentation''), the creative process for production of the Work at various and appropriate stages and shall provide that documentation to the CITY prior to installation of the Work. Consistent with Sections 23 and 32, ownership of the Documentation shall pass to and become property of the CITY once received by the CITY. Standard Agreement Page 5 of 13 Revised December 2016 ARTS City of National City and 67 of 585 18. CONTROL. Neither the CITY nor its officers, agents, or employees shall have any control over the conduct of ARTS or any of ARTS' employees, except as herein set forth, and ARTS or ARTS' agents, servants, or employees are not in any manner agents, servants, or employees of the CITY, it being understood that ARTS, its agents, servants, and employees are as to the CITY wholly independent consultants, and that ARTS' obligations to the CITY are solely such as are prescribed by this Agreement. 19. COMPLIANCE WITH APPLICABLE LAW. ARTS, 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. ARTS and each of its subconsultants, shall obtain and maintain a current City of National City business license prior to and during performance of any work pursuant to this Agreement. 20. LICENSES, PERMITS, ETC. ARTS represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. ARTS represents and covenants that ARTS 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 ARTS to practice its profession. 21. STANDARD OF CARE. A. ARTS, 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 ARTS' trade or profession currently practicing under similar conditions and in similar locations. ARTS shall take all special precautions necessary to protect ARTS' 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, ARTS 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 th.e ARTS' professional performance or the furnishing of materials or services rela ting ng thereto. C. ARTS is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the project ARTS has been retained to perform, within the time requirements of the CITY, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless ARTS has notified the CITY otherwise, ARTS warrants that all products; materials, processes or treatments identified in the project documents prepared for the CITY are reasonably commercially available. Any failure by ARTS to use due diligence under this sub -paragraph will render ARTS liable to the CITY for any increased costs that result from the CITY' S later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time. 22. NON-DISCRIMINATION PROVISIONS. ARTS 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. ARTS will take positive action to insure that applicants are employed without regard to their age, race, Standard Agreement Page 6 of 13 City of National City and Revised December 2016 ARTS 68 of 585 color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. ARTS 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. 23. CONFIDENTIAL INFORMATION, The CITY may from time to time communicate to ARTS certain confidential information to enable ARTS to effectively perform the services to be provided herein. ARTS shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CITY. ARTS 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 23, 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 ARTS, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of ARTS without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to ARTS 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. ARTS shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this Agreement without the prior written consent of the CITY. In its performance hereunder, ARTS 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. ARTS shall be liable to CITY for any damages caused by breach of this condition, pursuant to the provisions of this Section 23. 24. INDEMMFICATION AND HOLD HARMLESS. ARTS 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, damage, 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 ARTS' performance or other obligations under this Agreement; provided, however, that this indemnification and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the CITY, its agents, officers, employees or volunteers. CITY will cooperate reasonably in the defense of any action, and ARTS 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 oeclirred during the term of this Agreement, 25. WORKERS' COMPENSATION. ARTS 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 Government Code and all Standard Agreement Page 7 of 13 City of National City and Revised December 2016 ARTS 69 of 585 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 ARTS under this Agreement. 26. INSURANCE. ARTS, at its sole cost and expense, shall purchase and maintin, and shall require its subconsultant(s), when applicable, to purchase and maintain throughout the term of this Agreement, the following insurance policies: A. L] 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 ;11a T T tli liihr;;gU_tinnr. in favor of the CITY. Said endorsement shall be provided i - to commencement of work under this Agreement. If CONSULTANT has no employees subject to the California Workers' Compensation and Labor laws, CONSULTANT shall execute a Declaration to that effect. Said Declaration shall be provided to CONSULTANT by CITY. E. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, officials, employees, and volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CITY's Risk Manager, at the address listed in subsection G below, of cancellation or material change. F. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the CONSULTANT shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date must be on or before the date of this Agreement. G. The Certificate Holder for all policies of insurance required by this Section shall be: Standard Agreement Page 8 of 13 Revised December 2016 ARTS City of National City and 70 of 585 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 Californiathat hold a current policy holder's alphabetic and financial size category rating of not less than A: VII according to the current Best's Key Rating Guide, or a company of equal financial stability that is approved by the CITY'S Risk Manager. In the event coverage is provided by non -admitted "surplus lines" carriers, they must be included. on the most recent California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements. I. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY' S Risk Manager. If the CONSULTANT does not keep all 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. 27. 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 n.i -nf c: urt settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys' fees. For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorney's fees to the prevailing party if other than the CITY shall, in addition, be limited to the amount of attorney's fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual amount of attorney's fees incurred by the prevailing party. 28. 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 ARTS. During said 60-day period ARTS shall perform all services in accordance with this Agreement. B. This Agreement may also be terminated immediately by the CITY for cause in the event of a material breach of this Agreement, misrepresentation by ARTS in Standard Agreement City of National City and Revised December 2016 ARTS Page 9 of 13 71 of 585 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 ARTS as provided for herein. D. In the event of termination, all finished or unfinished Memoranda Reports, Maps, Drawings, Plans, Specifications and other documents prepared by ARTS, whether paper or electronic, shall immediately become the property of and be delivered to the CITY, and ARTS 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 ARTS' breach, if any. Thereafter, ownership of said written material shall vest in. the CITY all rights set forth in Section 15. E. The CITY further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting ARTS; (2) a reorganization of ARTS for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of ARTS. 29. 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, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand; direction or other communication delivered or sent as specified above shall be directed to the following persons: To CITY: To ARTS: Stephen Manga ello Director of Public Works / City Engineer Engineering & Public Works Department City of National City 1243 National City Boulevard National City, CA 91950-4397 Executive Director A Reason to Survive, Inc. 200 E. 12th Street National City, CA 91950 Standard Ageement Page 10 of 13 Revised December 2016 ARTS City of National City and 72 of 585 Notice of change of address shall be given by written notice in the mariner 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. 30. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this Agreement, ARTS 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. ARTS also agrees not to specify any product, treatment, process or material for the project in which ARTS has a material financial interest, either direct or indirect, without first notifying the CITY of that fact. ARTS shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. ARTS shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the CITY in which ARTS has a financial interest as defined in Government Code Section 87103. ARTS 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. ❑ If checked, ARTS shall comply with all of the reporting requirements of the Political Reform Act and the National City Conflict of Interest Code. Specifically, ARTS shall file a Statement of Economic Interests with the City Clerk of the City of National City in a timely manner on forms which ARTS shall obtain from the City Clerk. ARTS 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 30 by the ARTS. 31. PREVAILING WAGES. State prevailing wage rates may apply to work performed under this Agreement. State prevailing wages rates apply to all public works contracts as set forth in California Labor Code, including but not limited to, Sections 1720,1720.2, 1720.3, 1720.4; and 1771. ARTS is solely responsible to determine if State prevailing wage rates apply and, if applicable, pay such rates in accordance with all laws, ordinances, rules, and regulations. 32. WAIVER. Due to the nature of the work of art and the site on which it is installed, ARTS and his/her agents, heirs, successors and assigns hereby waive any and all federal and state rights they may have in or to the Work, including but not limited to copyright, any rights under the Visual Artists Rights Act, as set forth at 17 U.S.C. § 106A and § 113(d), and any rights under the California Art Preservation Act, as set forth in Civil Code Section 987. ARTS agrees that upon completion, ownership in the physical work of art which is created pursuant to this Agreement shall be transferred to and shall vest in the CITY, and ARTS hereby expressly waives and releases all rights of ownership to the work of art, including but not limited to those under Civil Code Section 988. ARTS and his/her agents, heirs, successors and assigns also agree not to attempt to defeat this waiver by cooperating with any organization which seeks to bring an action against CITY under Civil Code Section 989 or any other provision of law. The provisions of this Section 32 shall survive the termination of this Agreement. Standard Agreement Page 11 of 13 Revised December 2016 ARTS City of National City and 73 of 585 33. 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 pardes 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 en. yr n r,, ,, ^.r,11 or =x ritten and --,ins s the entire au e _t 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 ARTS identified in this Agreement. ARTS shall not subcontract any portion of the work, unless such subcontracting was part of the original proposal or is allowed by the CITY in writing. In the event any portion of the work under this Agreement is subcontracted, the subconsultant(s) shall be required to comply with and agree to, for the benefit of and in favor of the CITY, both the insurance provisions in Section 17 and the indemnification and hold harmless provision of Section 15 of this Agreement. 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 Standard Agreement Revised December 2016 ARTS Page 12 of 13 City of National City and 74 of 585 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 his Agreement, (iv) each party and such party's counsel and advisors have reviewed this Agreements (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'WIMPS WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CITY By: Leslie Deese, City Manager APPROVED AS TO FORM: Angil P. Morris -Jones By: Roberto M, Contreras Deputy City :Attorney A REASON TO SURVIVE, INC. (ARTS) By: standard Agreement Page 13 of 13 Revised December 2016 ARTS Fabienne Hanks, Board Chair mama Montgomery, Board Member City of National City and 75 of 585 EXHIBIT "A" - BUDGET DETAIL _• 1. ARTISTIC Project Manager/Lead Designer $45-$55/hr $10,000 $25,000 Support Artist $30/hr $20,000 Student Apprentice (6-8) $11/hr $15,000 2. ADMINISTRATIVE Community Arts Manager (1) $28/hr $0 Student Apprentices Manager (1) $26/hr $0 Artistic Director& Managing Director $38/hr $0 3. TECHNICAL University of San Diego CasterCenter Evaluation Consultants $10,000 per service (spread across multiple projects) $0 SUBTOTAL: Personnel Expenses $45,000 $25,000 B:Of' RATIiVG /'• €1CipkTIO WT1 _ • CCC GRANT - - DS MATCHING :FUJ�d 4. PROJECT MATERIALS $19,000 _ $40,000 5. DOCUMENTATION & MARKETING SUPPLIES $1400 6. GENERAL OPERATING so SUBTOTAL: Operating / Production Expenses $20,000 $40,000 _TOTAL EXPENSES $65,000 $65,000 76 of 585 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH A REASON TO SURVIVE, INC. (ARTS) TO LEAD THE DEVELOPMENT OF TWO CREATIVE PLACEMAKING PROJECTS THAT INCORPORATE ART, HEALTH AND COMMUNITY ENGAGEMENT, LOCATED IN THE WESTSIDE (OLD TOWN) NEIGHBORHOOD OF NATIONAL CITY FUNDED THROUGH A $65,000 CREATIVE CALIFORNIA COMMUNITIES GRANT FROM THE CALIFORNIA ARTS COUNCIL AWARDED TO ARTS AND $65,000 IN CITY MATCHING WHEREAS, A Reason to Survive, Inc. (ARTS), a California non-profit corporation, 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; and WHEREAS, ARTS applied for and received a $65,000 Creative California Communities (CCC) grant from the California Arts Council to lead the development of two creative placemaking projects that incorporate art, health, and community engagement, located in the Westside (Old Town) neighborhood of National City; and WHEREAS, the first project will construct a public gathering place and storefront renovation at the northwest corner of the intersection of Coolidge Avenue and West 16th Street, with a focus on providing children and residents access to healthy foods; and WHEREAS, the second project will construct a public gathering place in Paradise Creek Park, with a focus on providing children and residents access to art and education; and WHEREAS, the CCC grant requires a "one-to-one" match in the amount of $65,000, for a total project cost of $130,000, and the City agrees to fund the $65,000 match to assist ARTS with development of the projects for the benefit of the community; and WHEREAS, the City's matching funds shall only be used for project improvements located within the public rights of way; and WHEREAS, the City and ARTS previously entered into a thirty-six (36) month Maintenance and Operating (M&O) Agreement, dated December 5, 2017, wherein ARTS agreed to maintain and operate the City -owned property located at 200 East 12th Street as an Arts Center for the community's benefit to enrich the lives of National City residents by providing arts, culture, and educational resources; and WHEREAS, per the terms of the M&O Agreement, ARTS is required to deliver a minimum of $125,000 in public/capital art projects per year; and WHEREAS, ARTS contribution of $65,000 towards the capital art improvements identified and funded by the CCC grant and further defined in the Agreement, would be applied towards ARTS' annual public art requirement under the M&O Agreement; and WHEREAS, the City's contribution of $65,000 towards the capital art improvements identified by the CCC grant and further defined in the Agreement, shall be 77 of 585 Resolution No. 2017 — Page Two considered separate and distinct from requirements under the M&O Agreement, and therefore, will not relieve ARTS of its obligations under the M&O Agreement; and WHEREAS, based on review of ARTS' performance and qualifications delivering capital art projects through community engagement, the City has determined that ARTS is qualified by experience and ability to perform the services desired by the City, and ARTS is willing to perform such services; and WHEREAS, ARTS agrees that upon completion of the projects, ownership of the physical works of art installed within public rights of way shall be transferred to the City, and ARTS waives and releases all rights of ownership to those works of art. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the City Manager to execute an Agreement with A Reason to Survive, Inc. (ARTS) to lead the development of two creative placemaking projects that incorporate art, health and community engagement, located in the Westside (Old Town) neighborhood of National City funded through a $65,000 Creative California Communities grant from the California Arts Council awarded to ARTS and $65,000 in City matching funds PASSED and ADOPTED this 19' day of December, 2017. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ron Morrison, Mayor 78 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 79 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing the City (Buyer) to piggyback on to the City of Poway's Urban Forestry Maintenance Services contract with West Coast Arborist, Inc. (WCA), and award the purchase of specialized tree t 79 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO.. ITEM TITLE,7 Resolution of the City Council of the City of National City authorizing the City (Buyer) to piggyback on to the City of Poway's Urban Forestry Maintenance Services contract with West Coast Arborist, Inc. (WCA), and award the purchase of specialized tree trimming, removal, and planting services in an amount not to exceed $90,000, consistent with Section 2.60.260 of the National City Municipal Code regarding cooperative purchasing. PREPARED BY Ray Roberson, Management Analyst PHONE: 619-336-4583 EXPLANATION See staff` report. FINANCIAL STATEMENT: ACCOUNT NO. DEPARTMENT: Engineering and Public Works APPROVED BY: 105-416-227-299-0000) — Contract Services - $90,000 Funds are appropriated and available in the above expenditure account. APPROVED: —0( FINANCE APPROVED: MIS ENVIRONMENTAL kEVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION 111 FINAL AiOOPTION E STAFF RECOMMENDATION: Adopt the resolution BOARD / COMMISSION RECOMMENDATION: ATTACfriIvlii N''rS: 1. Explanation 2. City of Poway Urban Forestry Maintenance Services contract 3. Service Agreement 4. Resolution 80 of 585 EXPLANATION In Fiscal Year (FY) 2015, the City contracted with VVest Coast Arborist, Inc. (WCA), a highly qualified and reputable contractor in the field of urban forestry, to assist the City's Park Maintenance staff with addressing the growing backlog of tree trimming requests for service. Through implementation of a grid -based tree trimming program, WCA proved to be effective in assisting City crews with clearing the backlog, which allowed City crews to focus on maintaining their tree trimming schedule. The grid schedule allows for a systematic approach to ensuring that trees citywide receive regular maintenance in a manner that maximizes staff efficiency. While the grid schedule has been effective, emergency and specialized (Le. stump grinding, tree removal, palm trees) work continues to be problematic for crews. The continued use of WCA will provide for the arborists to address emergency and specialized work in a timely manner in addition to maintaining routine tree maintenance through the use of the grid. Further, the emergency and specialized work often involves specialized skills and equipment beyond the City's resources. As part of the FY 2018 annual budget, City Council adopted the maintenance and operating budget for Public Works Parks Division, which includes $90,000 for contract tree trimming support services. National City Municipal Code Section 2.60.260 provides authority to the purchasing agent to join with other public jurisdictions to take advantage of cooperative purchasing opportunities, including but not limited to any federal, state or local agency pricing program or structure that is determined by the purchasing agent to allow a procurement that is in the best interests of the City. The purchasing agent may buy directly from a vendor at a price established through competitive bidding by another public agency whose procedures have been determined by the purchasing agent to be in substantial compliance with the City's procurement procedures, irrespective of the contracting limits of that jurisdiction or agency, even if the City had not initially joined with that public agency in the cooperative purchase. National City's Purchasing staff has confirmed that the City of Poway's Urban Forestry Maintenance Services contract with WCA was competitively bid through a RFP process, and that the City of Poway's procurement procedures are in substantial compliance with those of National City. On July1, 2016, the City of Poway entered into a two year agreement with WCA for Urban Forest Maintenance Services, which expires on June 30, 2018. The contract may be extended with a total of three (3) separate one-year term extensions. Therefore, staff requests that City Manager authorize the City (Buyer) to piggyback on the City of Poway's Urban Forestry Maintenance Services contract with WCA and purchase tree trimming, removal, and planting services from WCA in an amount not to exceed $90,000, consistent with Section 2.60.260 of the National City Municipal Code regarding cooperative purchasing. 81 of 585 CONTRACT URBAN FORESTRY MAINTENANCE SERVICES This Contract, made and concluded this first day of July, 2010, by and between the CITY OF POWAY, a general law city and municipal corporation (the °City", and West Est Arborlat, Inc., a California corporation, hereinafter referred to as •the Contractor.° The length dells Contract shall be for two (2) years beginning on July 1, 2018 through June 30, 2018. The Contract may be extended with a total of three (3) separate one-year tram extensions. Each extension will be dependent on the appropriation of funds by the City Council. The maximum length of the Contract can be up to five (5) years. The option to renew may be by mutual agreement batmen the City and the selected Contractor. Adjustments to service costs are based on Section Il, item 28, Contract Renewal. The Cky may at any time, for any reason, with or without cause, suspend or terminate this Contract, orar portion hereof, by seMng upon the selected Contractor at leant ten (10) working days prior written notice with cause ar sixty (60) days without cause. if the City suspends or terminates a portion of this Contract, auch auepension or termination shall not make void or invalidate the remainder of this a Contract. ARTICLE I. That for and In consideration of payments end agreement hereinafter mentioned, to be nude and performed by the city, and under the conditions expressed In the bonds attached hereto, If any, Contractor agrees with City at Contractor's cost end etxpenas, to do ail the work and furnish all the materials except such as are mentioned in the Specifications (attached hereto, at Seaton 3) necessary to construct and complete In good, workmwiNke and substantial manner, all to the satisfaction of the City of Poway, In accordance with the Spada/ Provisions for this project as set forth herd. ARTICLE II. Said Contractor agrees to receive and accept as full compensation for furnishing as materials and doing all the work contemplated and embraced in the Contract an amount equal to the sum of the totals for the Items of worfk. The total for each item of work shall be calculated by determintng the actual quantity of each item of work end multiplying that actual quantity by the unit price propose by the Contractor for that Item of worts. Contractor further agrees to be responsible end hold City hamtess from al tom or damage arising out of the nature of work aforesaid, or from the acts of the elements, or from any LalfOrESSell difficulties or obstructions which may arise or be encountered in the prosecution of the work until its acceptance by City. Contractor agrees to be responsible and hold City harmless from ail risks of every description and under the control of Contractor pursuant to the terms of the Contract, and connected with Contractor's performance of this Contract The Contractor is responsible for all expenses Incurred by or in consequence of the suspension or discontinuance of work, and/or falthfully completing the work, and the whole thereof, in the manner and according to the Piens end Specifications and requirements of the City. ARTICLE Ili. The Ctty hereby agrees and promisee the Contractor to employ, end does hem employ. said Contractor to provide the materials and to do the work according to the terns and conditions haven oontained and referred to, for the prig elated, and hereby Contras to pay the same at the dine, in the manner, and upon the =Mons above set forth. Said parties for themselves, to their heirs. executore„ ecbrtirdstraiora, successors and mega, do hereby agree t0 full performance of the Covenants herein contained. ARTICLE IV. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid or proposal of said Contractor, then this inetrunrent shall control and nothing herein shall be considered as an acceptance of the saki terms of proposal conflicting hernwith. 82 of 585 ARTICLE V. Contractor &tail defend and ottionteite hold City harmless from any and al claims, complaints, causes of action, of any nature whatsoever, arising from Contractors performance of the Contract. In performance of this Provision, Contractor shall nerve City es additional insured on a policy of general lability as required per Section li, Item 19. The Covenant contained herein applies to al sums paid as a result of the above claims, Including court costs and reasonable attorney fees whether or not the matter results in judgment. ARTICLE VI. Pursuant to Public Contract Code Section 22300, provisions for substitution of securities for performance retentions win be allowed. ARTICLE V11, EACH AND EVERY COVENANT, CONDITION AND PROMISE contained In the Specification, General Provfsiona and Special Provisions for said project are herein Incorporated by reference as if fully set forth herein and constitute ei matemate2i part of the oonaideratlon to the City in entering Into this Contract with Contractor. (All items in the Contract will be the earns es In the Proposal,) IN WITNESS WHEREOF, the parties to those year end dale first above written. Contractor. Signature Tile: Patrick Mahoney, President Title: Richard Mahoney. As City Manager of the City of Poway: ATTEST: City Clerk: APPROVED AS TO FORM: .r ldp�` Sf�y;_ /41, names In the Secretary 83 of 585 SECTION V PROPOSAL FORMS To the Illy of Ppwavv, acting by and through fts City Council. hermit called the "City for URBAN FORESTRY MAINTENANCE SERVICES to be provided to said City; Pursuant to and in compliance with the Request for Proposals (RFP) end in accordance with the Specifications contained herein, the undersigned proposing contractor, having become familiarized with the terms of the coact, plans. apeolfloatlons, and addenda, hereby proposes and agrees to perform, within the time stipulated, the contract, including ail of Its oomponent parts, and everything requited to be performed, aft In strict conformity with the plane and specifications and other contract documents, including all addenda for the suns set for the sftes listed herein; It is understood and agreed that the contract amount includes el; appurtenant expenses. taxes, royalties, and fees. In the case of discrepancies between numbers of the proposal amount and the wont elating the amount, the words shell govern over numbers; IN COMPLIANCE with the Notice, Specifications, and special provisions herelnbefore stipulated, the undersigned, ',Ain full comprehension thereof. hereby proper to perform the entire work for the prices set forth below upon which award of Contract is made; Work not Identified In the contract will be bllled on a time and matelots basis using the same standard hourly rate (which shall Include Tabor, vehicle cos, took and equipment, overhead and profit). For the purpose of proposal evaluation, proposing contractore ehall enter on the proposal schedule the standard hourly rates as requested, Notice of acceptance of requests for additional Information should be addressed to proposing contractor at the enlali address stated bektw. Business NamelPropoaing Contractor (Please Print): et Authorized Agent or Officer: Title: lno. Email Address: vgonzalezewca ic.com 2200 E. Via Burton Anaheim, CA 92808 84 of 585 PROPOSAL FURS salvia. Address: its Commerce Avenue, Suke B San Diego, CA 12121 Telephone: 0714) 991-4900 City of Poway Business Cariigcaate No.: 8C 007041 Expiration Data: 07/2 017 CA Lbenae No: 38B764 Llama Expiration Data 1=31118 DIR Ragiofration No.: 1O [Remainder of Pepe Left Blank Intentionally) 88 85 of 585 PEE SCHEDULE - MAINTENANCE MoabOen - -- - lilt ' nu Price Odd Trr. Trimming $ 02.00 Tree Ralf" _ Each $ 84.80 Pruna Fen Palm Each exao Clan Trunk for Fan Patna Isidemino) _ 150.00 ServIc, Request Trtnrolng O.8' NH" Each _ . 82.00 8.j 4oe Rawest Trtnimtng 7-12" DBH' Esah_ ,p0 Benrooe Rsauest Trbytnil Mq 13-10 DOH' Each 13.0p " I Sondes Request Trdrnmb q 2t ' DEW* Etch E 1 3,pa Samoa Ramat Trbnmtkv 31'¢ DM" Each 828.00 Tree Removal and Storm Orlmlinp tncti - 8?.40 Tree Removal bnty's Irob .17,op Rent 16w n sintr : 190.00 plant 16 Imo *lout R8' Each . 170.00 4 Plate 24' box freer * Each MA Plant' box las REP Eaoh Plant r inn *YQI r g7D,00 1 Plant 33' box tree art RB' ram , Ptant4S' boar bee WEI' Each Plane 49' boss fres out RV Root Pruninalttoot $arrtar Installation 12' or 16° blo.barder E OM Tree Invenbr ,(POI 09 DIM) 'Tree plantkig inductee tree. materiels,, *nd p6ifirtg. 'MildWaning, Veil ralskra, and senfloa rekassfa 6 and &vowel. "'Tea and clump rsa vat Includes damp and disposed. MAINTENANCE - PROPOSAL AMOUNTS, BY W0RDS Seven thousand obi hundred W1t doses Fikj esa cents r Proposing Contractor's Slgraltum; . sorts: 5/28/16 Cotes Company, 37 86 of 585 PEE SCHEECt1Ltg — HOURLY RATES Deeporiptien krieneey —Wale, (TM A. a, —4 00 Mg After Hours OUR R.M.--7:Oa A.M.) HeBdOcs. and Weekends Regular Tree MaIntananos Crew Rental (Men my? $ 210.00 Olin Emergency Crow Rental Omen crewY nIa 270.00 - 121209 Specialty Equipmentre (tine gnaw ..• c,� &bode ' 150.fl� Pest Co "_' .. . 1 1 i . L1.i4- j Watering tress. truck & motor} /� 70.OD 150.00 1 13I ALS, 5 4 1 Y 1 1 1 "Includes overhead and WO* I OUR!.Y RAT - KZOPOSAL AMOUNTS, [. i WOMB: Monday — Friday After Hours, Hcfldays, Ind Weekends EOM Nuked $ftY Dollen Proposing Cortteacicee aperture: Cotter orommy West Cat s bon a, Inc. Zero Conte lttdredMonts Dalian Zero Cents Dots: 8f18 cocPERATNE PURCHASING I le Wended th t enyottler patio spicy is a.l coy, county Mkt, public SaY. PIING Maw warnIclpell y, end other POINCel sub Helen or pubic corporation) Mai Iwo the option to participate to any award made as a result oIttrN eatdtatlon at the same Owe. The City shall Mcurnoinanail eseporbttty I connection twit enyr a nduee by another public agency. The public agency dal swept sole reepansttlby for piecing orb and melting payneeats to the vendor. 38 87 of 585 GUARANTY To the City of Poway, City Council, for URBAN FORESTRY MAINTENANCE SERVICES The undersigned guarantees the work Included in this prcjec t(e), Should any of the materiaie or equipment prove defective or should the work es a ale pmve defective, due to faulty : rkmweitp, material furnished or meth ode of inetetation. or shed the work. m arec pert thereof fail to gate properly as orighelly intended and in accordance with the Specifications, due to any of the above causes, all within the number of months the site is to be maintained after date on which this Contract Is accepted by the City, or the date of recoidaton of Notice of Completion, whichever le the later, the undersigned agrees to reimburse the City upon demand, for Its expenses incurred In restoring said work in the conaltion oar:tennp! din said sec:, Ind..eling the coet of eery such equipment or materials replaced and the oat of removing and replacing any other work necessary to make euth rept@oament or repairs, or upon demand by the City. to replace any such material and to repair said work completely without wet to the City so that Bald work will function successfully as originally contemplated. The City shall have the unqualified option to make any needed replacements or repairs Itseff or to have such replacements or repairs done by the undersigned. In the event the City elects to have said work performed by the undersigned, the undersigned agrees that the repairs shall be made and such materiels as are necessary shall be furred end Installed within a reasonable time after the receipt of demand from the City. If the undersigned shell fail or refuse to comply with his obligations under this guaranty, the City shall be entitled to a!1 coat and expenses, Including attomey's fees, reasonably incurred by reason of the Bald falure or refusal. West Coset4" • , Jets, Inc. Contractor •( Patrick Mahoney, President Title June 27, 2016 Date **TO BE SU8MITrED WITH EXECUTED CONTRACT*"` 88 of 585 WORKERS' COMPENSATION INSURANCE CERTIFICATE Pursuant to Section 1 661 of the State tabor Code, each Contractor to whom a public works Contract has been awarded shall sign the following certificate and shall submit same to the City of Poway prior to performing any work on the Contract: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be inured air t liablik for Warkarte Compensation or to undertake self- insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this Contract" West Coast Arb-. abe, Inc. _A Contractor (Company I M47 Title Patrick Nab Jana 27, 2016 Date Section 3700 of the State Labor Code reads in part as follows: "Every employer except the State shall secure the payment of compensation In one or more of the following ways: (a) By being Insured against liability to pay compensation by one or more Insurers duly authorized to write compensation Insurance in this sue. (b) By securing from the Director of Industrial Relations a certificate of consent to *Of - Insure, either as an individual employer, or as one employer In a group of employers, which may be given upon furnishing proof satisfactory to the Director of industrial Relations of ability to self -Insure and to pay any compensation that may became due to his employees." "TO BE SUBMITTED WITH EXECUTED CONTRACT'* 89 of 585 SECTION I REQUEST FOR PROPOSALS 1m t horeby atm, that the Cry f, Cam will mccept salad props* at the Pub Wortr Administation Office, 14487 Lake Poway Road, Poway, CA 92084, until &GO p.m. oh Tuesday, June 1, 2015‘ Proposals shall be submitted in plain, sealed envelopes, marked on the outside with the project trits7 URBAN FORESTRY MAINTENANCE SERVICES RFP 111.0t8 .Project Deecriptlon; To ?Mirth all professional Services, ekiiled labor, meienais, equipment, tools, InSUrarkeik winds and fees, as necessary, to render the .services Recanting to the specifications set forth In this outline, The sum proposal by a qualdied contractor to provlda professional Urban Forestry Maintenance Services wdt result st a contract with the Cdy of Poway The contractor %id supplement City Mad No proposal will be accepted unless d le made on proposal forms furnished by the City of Poway Proposals will be evaluated on the bawls of a enae and ability1s perform, which includes the equii3ment fit, but not limited to, eotpertance and history of the *in as well as upon the amount proposed_ The City will also consider a cooperative purchasing agreement that meets our purchasing requirements per 3.28 in the Municipal Code. The Ord of the Contract, if made, will be made to the proposer, who in the sole discretion of the City is best able to perform the Contest in a .manor moat beneficial to the City of Poway The City ream= the right, after opening propocate, to Moot any or apt proposals, to waive any informality in the propo aI, and to accept arry propocol or porter of it Standard Contract Length: The length of this Contract shall be for two (2) years on .July 1, 2018 through June 30, 2018-The Contract may be extended -with a total of three (3) separate ono -year term eadensions. The mterimurn length of the Contract can be up to five. (5) years The option to renew may be by mutual agreement between the City end the selected Contras. Award of the Contract and any Contract extensions- am subject to City Council appropriation of fields Each renewal period (fiscal), the Contractor's costs shell be adjusted bid on the annual change in the previous calendar year's Coneumer Price Index for the San Diego .erne (All Urban Consumers CPI-U) or 5%, whichever Is here. The. Net a4justment would occur no eerier than July 1, 2018 Prop a al documents may be pined for nun -refundable fee of $7,8D per set from the City of Poway Customers Services C t , located at 133211 Civic Center Drive, CA $2064 during regular business E rd cr free of charge via our webelbv at OrtiV45 ►ri lPl"0. For further iriforrnation contact Diens Mann, .Public Works Supervisor, at (858) 888- 4704 or by email at gegntlay.4ra• r CATE �1 1 Troy 8ankstan, Director of Public Works 90 of 585 AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND WEST COAST ARBORISTS, ITC. THIS AGREEMENT is entered into on this 19th day of December, 2017, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and WEST COAST ARBORISTS, INC., a California corporation (the "CONTRACTOR"). RECITALS WHEREAS, the CITY desires to employ a CONTRACTOR to provide Urban Forestry Maintenance Services to assist the City's Park Maintenance staff with ongoing tree trimming needs and demands. WHEREAS, the CITY has determined that the CONTRACTOR is a certified forestry professional and is qualified by experience and ability to perform the services desired by the CITY, and the CONTRACTOR is willing to perform such services. WHEREAS, this contract is being awarded based on cooperative purchasing, as permitted in National City Municipal Code section 2.60.260. The City of Poway has gone through a competitive process for these services and selected This CONTRACTOR, and the CITY is entering into this Agreement with the prices established through that competitive process. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF CONTRACTOR. The CITY agrees to engage the CONTRACTOR to perform tree pruning, tri_mining, and planting services, and the CONTRACTOR agrees to perform the services set forth here in accordance with all terms and conditions contained herein. The CONTRACTOR represents that all services shall be performed directly by the CONTRACTOR or under direct supervision of the CONTRACTOR. 2. EFFECTS DATE AND LENGTH OF AGREEMENT. This Agreement will become effective on December 21, 2017. The duration of this Agreement is for the period of December 21, 2017 through December 20, 2018. Completion dates or time durations for specific portions of the project are set forth in Exhibit "B". This Agreement may be extended by mutual agreement upon the same terms and conditions for an additional one (1) year term. The Parties may exercise up to three one-year extensions. Any extension of this Agreement must be approved in writing by the City Council. 91 of 585 3_ SCOPE OF SERVICES. The CONTRACTOR will perform tree pruning, trimming, removal, and planting services as set forth in the attached Exhibit "A" following the fee schedule as set forth in the attached Exhibit "B" (the project). The CONTRACTOR 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 CONTRACTOR shall appear at meetings, as required, to keep staff and City Council advised of the progress on the project. The CITY may unilaterally, or upon request from the CONTRACTOR, from time to time reduce or increase the Scope of Services to be performed by the CONTRACTOR under this Agreement. Upon doing so, the CITY and the CONTRACTOR 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. Victor Uribe, Park Superintendent, hereby is designated as the Project Coordinator for the CITY and will monitor the progress and execution of this Agreement. The CONTRACTOR shall assign a single Project Director to provide supervision and have overall responsibility for the progress and execution of this Agreement for the CONTRACTOR. Michael Palat thereby is designated as the Project Director for the CONTRACTOR. 5. COMPENSATION AND PAYNFENT. The compensation for the CONTRACTOR 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 $90,000. The compensation for the CONTRACTOR'S work shall not exceed the rates set forth in Exhibit "A". Monthly invoices will be processed for payment and remitted within thirty (30) days from receipt of invoice, provided that work is accomplished consistent with Exhibit "A", as determined by the CITY. The CONTRACTOR shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred, and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CITY, and for furnishing of copies to the CITY, if requested. 6. ACCEPTABILITY OF WORK The CITY shall decide any and all questions which may arise as to the quality or acceptability of the services performed and the manner of performance, the acceptable completion of this Agreement, and the amount of compensation due. In the event the CON TRACTOR and the CITY cannot agree to the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONTRACTOR in this Agreement, the CITY or the CONTRACTOR shall give to the other written notice. Within ten (10) business days, the CONTRACTOR 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 CONTRACTOR. Standard Agreement Page 2 of 11 City of National City and Revised July 2017 WCA 12r2017 - 1212018 92 of 585 7. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda, Reports, Maps, Drawings, Plans, Specifications, and other documents prepared by the CONTRACTOR 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 CONTRACTOR hereby assigns to the CITY, and CONTRACTOR 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 CONTRACTOR shall, upon request of the CITY, execute any further document(s) necessary to further effectuate this waiver and disclaimer. The CONTRACTOR agrees that the CITY may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium, or method utilize the CONTRACTOR'S written work product for the CITY'S purposes, and the CONTRACTOR 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 CONTRACTOR shall relieve the CONTRACTOR 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 CONTRACTOR nor the CONTRACTOR'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 CONTRACTOR and the CONTRACTOR'S employees, and it is recognized by the parties that a substantial inducement to the CITY for entering into this Agreement was, and is; the professional reputation and competence of the CONTRACTOR and its employees. Neither this Agreement nor any interest herein may be assigned by the CONTRACTOR without the prior written consent of the CITY. Nothing herein contained is intended to prevent the CONTRACTOR from employing or hiring as many employees, or SUBCONTRACTORS, as the CONTRACTOR may deem necessary for the proper and efficient performance of this Agreement. All agreements by CONTRACTOR with its SUBCONTRACTOR(S) shall require the SUBCONTRACTOR(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 CONTRACTOR or any of the CONTRACTOR' S employees, except as herein set forth, and the CONTRACTOR or the CONTRACTOR'S agents, servants, or employees are not in any manner agents, servants, or employees of the CITY, it being understood that the CONTRACTOR its agents, servants, and employees are as to the Standard Agreement Page 3offll City of National City and Revised July 2017 WCA I2/2017 - 12/20I8 93 of 585 CITY wholly independent CONTRACTOR, and that the CONTRACTOR' S obligations to the CITY are solely such as are prescribed by this Agreement. 10. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR, 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 CON i"RACTOR and each of its SUBCONTRACTOR(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 CONTRACTOR represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. The CONTRACTOR represents and covenants that the CONTRACTOR 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 CONTRACTOR to practice its profession. 12. STANDARD OF CARE. A. The CONTRACTOR, 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 CONTRACTOR'S trade or profession currently practicing under similar conditions and in similar locations. The CONTRACTOR shall take all special precautions necessary to protect the CONTRACTOR'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 CONTRACTOR 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 CONTRACTOR'S professional performance or the furnishing of materials or services relating thereto. C. The CONTRACTOR is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the project the CON TRACTOR has been retained to pc form, within the time requirements of the CITY, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONTRACTOR has notified the CITY otherwise, the CONTRACTOR warrants that all products, materials, processes or treatments identified in the project documents prepared for the CITY are reasonably commercially available. Any failure by the CONTRACTOR to use due diligence under this sub -section will render the CONTRACTOR liable to the CITY for any increased costs that result from the CITY'S later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time. 13. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR 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 CONTRACTOR RACTOR will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include Standard Agreement Page 4 of 11 City of National City and Revised July 2017 WCA 12/2017 - 12120I8 94 of 585 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 CONTRACTOR 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 CONTRACTOR certain confidential information to enable the CONTRACTOR to effectively perform the services to be provided herein. The CONTRACTOR shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CITY. The CONTRACTOR 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 CONTRACTOR, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONTRACTOR without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONTRACTOR 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 CONTRACTOR shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this Agreement without the prior written consent of the CITY. In its performance hereunder, the CONTRACTOR 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. CONTRACTOR shall be liable to CITY for any damages caused by breach of this condition, pursuant to the provisions of Section 15. 15. INDEMNIFICATION AND HOLD HARMLESS. The CONTRACTOR 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 CONTRACTOR'S performance or other obligations under this Agreement; provided, however, that this indemnification and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the CITY, its agents, officers, employees or volunteers. CITY will cooperate reasonably in the defense of any action, and CONTRACTOR shall employ competent counsel, reasonably acceptable to the City Attorney. The indemnity, defense, and hold + : ess 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 CONTRACTOR 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 Standard Agreement Page 5 of 11 City of National City and Revised July 2017 WCA 1212017 - 1212018 95 of 585 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 CONTRACTOR under this Agreement. 17. INSURANCE. The CONTRACTOR, at its sole cost and expense, shall purchase and maintain, and shall require its SUBCONTRACTOR(S), when applicable, to purchase and maintain throughout the term of this Agreement, the following insurance policies: A. ❑ If checked, Professional Liability Insurance (errors and ornissions) 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 CONTRACTOR'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 CONTRACTOR has no employees subject to the California Workers' Compensation and Labor laws, CONTRACTOR shall execute a Declaration to that effect. Said Declaration shall be provided to CONTRACTOR by CITY. E. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, officials, employees, and volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the C 1TY's Risk Manager, at the address listed in subsection G below, of cancellation or material change. F. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the CONTRACTOR 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. Standard Agreement Page 6 of 11 City of National City and Revised July 2017 WCA 12/2017 - 1212018 96 of 585 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 Californiathat hold a current policy holder's alphabetic and financial size category rating of not less than A:VII according to the current Best's Key Rating Guide, or a company of equal financial stability that is approved by the CITY'S Risk Manager. In the event coverage is provided by non -admitted "surplus lines" carriers, they must be included on the most recent California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements. I. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY'S Risk Manager. If the CONTRACTOR 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 CONTRACTOR 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 CONTRACTOR. 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 other than the CITY shall, in addition, be limited to the amount of attorney's fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual amount of attorney's fees incurred by the prevailing party. Standard Agreement Page 7 of 11 City of National City and Revised July 2017 WCA 12/2017 - 12/2018 97 of 585 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 CON TRACTOR. During said 60-day period the CONTRACTOR shall perform all services in accordance wit4-, 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 CONTRACTOR 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 CONTRACTOR 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 CONTRACTOR, whether paper or electronic, shall immediately become the property of and be delivered to the CITY, and the CONTRACTOR 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 CONTRACTOR'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 CONTRACTOR; (2) a reorganization of the CONTRACTOR for the benefit of creditors; or (3) a business reorganisation, change in business name or change in business status of the CONTRACTOR. 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, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: Standard Agreement Page 8ofll City of National City and Revised duly 2017 WCA 12/2017 - 12/2018 98 of 585 To CITY: Victor Uribe Park Superintendent Engineering and Public Works Department City of National City 1243 National City Boulevard National City, CA 91950-4397 To CONTRACTOR Michael Palat Area Manager West Coast Arborists, Inc. 8524 Commerce Avenue, Suite B San Diego, CA 92121 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 CONTRACTOR 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 CONTRACTOR also agrees not to specify any product, treatment, process or material for the project in which the CONTRACTOR has a material financial interest, either direct or indirect, without first notifying the CITY of that fact. The CONTRACTOR shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The CONTRACTOR shah immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the CITY in which the CONTF.ACTOR has a financial interest as defined in Government Code Section 87103. The CONTRACTOR 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. El If checked, the CONTRACTOR shall comply with all of the reporting requirements of the Political Reform Act and the National City Conflict of Interest Code. Specifically, the CONTRACTOR 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 CONTRACTOR shall obtain from the City Clerk. The CONTRACTOR 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 CONTRACTOR. 22, PREVAILING WAGES. State prevailing wage rates may apply to work performed under this Agreement. State prevailing wages rates apply to all public works contracts as set forth in California Labor Code, including but not limited to, Sections 1720,1720.2, 1720.3, 1720.4, and 1771. Contractor is solely responsible to determine if State prevailing wage rates Standard Agreement Page 9 of /1 City of National City and Revised July 2017 W CA 1212017 - 12/2018 99 of 585 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 agreernents, 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. n. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and asses of the parties hereto. L. Subcontractors or Subcontractors. The CITY is engaging the services of the CONTRACTOR identified in this Agreement. The CONTRACTOR 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 subcontractor(s) shall be required to comply with and agree to, for the benefit of and in favor of the CITY, both the insurance provisions in Section 17 and the indemnification and hold harmless provision of Section 15 of this Agreement. Standard Agreement Page 10 of 11 City of National City and Revised July 2017 WCA 12/2017 - 12/2018 100 of 585 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 parry'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 By: Ron Morrison, Mayor APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney By: Roberto M. Contreras Deputy City Attorney Standard Agreement Revised July 2017 WEST CAST ARBORISTS, INC. (Corporation - auras of two corporate ,olgc i required) �F �I By: Page 11 of 11 ('Name) Patrick Mahoney (Print) President (Title) Assistant Sect' (Title) City of National City and WCA 12/2017 - 12/2018 101 of 585 Exhibit A West Coast Arborists, Inc. Scope of Work Project Requirements The Scope of Work for this Contract is to provide professional Urban Forestry Maintenance Services for tree pruning, trimming, removal, and planting as directed by the City's Park Supervisor, to maintain the City of National City's trees in a safe, attractive and overall healthy condition. Prices for said services are listed in Exhibit E. The contract is not to exceed $90,000 and is effective December 19, 2017 through December 18, 2018. Page 1 of 1 102 of 585 EXHIBIT B Tree Car Profiessfonals Serving CORINIillitieS Who Care About Trees www.WCAINC.com November 14, 2017 City of National City ATTN: Ray Roberson, Management Analyst Engineering & Public Works Department 1243 National City Blvd. National City, CA 91950 RE; TREE MAINTENANCE SERVICES Dear Mr. Roberson, Over the years, West Coast Arborists, inc. (WCA) and the City of National City have forged a very productive and cohesive vecrking relationship. Today, our common goal remains the same; to preserve the integrity and health of the Citty's urban forest. As we approach the end of the current contract term, we propose to continue tree maintenance services under a "piggyback" approach. Recently, the City of Poway conducted a formal RFP for Tree Maintenance Services and WCA was awarded a new contract. The new rates found under Poway's contract are competitive among the Industry, particularly with grid tree pruning, tree removal, and tree planting. As a partner with the {lty of National City under their grant planting project, the competitive rates for tree planting services will serve the City well. We agree to offer the same unit prices, terms and conditions as Poway's current contract. Attached to this letter are copies of Poway's RFP, Council Agenda Report and Price Schedule. Please note that Poway's Agreement contains a Cooperative Purchasing Provision that allows other agencies to piggyback. As part of this Agreement, we agree to waive all annual service fees for our tree inventory software program called Arbor Access. We appreciate your ongoing efforts to make this Agreement a success for both the City and WCA and look forward to continuing our successful business relationship. Should you have any questions, r require additional information please do n hattatz to contact me at M800) 521- 3714. Sincerely,,) Victor Gonzalez Vice President West Coast:.Ar.b.orists, Inc. 103 of 585 CONTRACT URBAN FORESTRY MAINTENANCE SERVICES This Contract. made end concluded this first day of July. 2018. by and between the CITY OF POWAY. a general Taw city and municipal corporation (the "City"), and West Coast Arborlat. Inc., a California corporation, hereinafter referred to as "the Contractor.` The length of this Contract Mali be for two Mysore beginning on July 1, 2018 through June 30, 2018. The Contract may be extended with a total of three (3) separate one-year term extensions. Each extension will be dependent on the eppropriatkut of funds by the City Council, The maximum length of the Contract can be up to five (5) years. The option to renew may be by mutual agreement batmen the City and the selected Contractor. Acijustmentrs to service costs are based on Section II. Item 28. Contract Renewal. The Cly may at any time, for any reason, with or without cause, suspend or terminate this Contract, or any portion hereof, by serving upon the selected Contractor at least ten (10) w+orking days prior written notice with cause or sixty (80) days without cause. if the City suspends or terminates a portion of this Contract, such auapenelon or termination shall not make void or hwegdete the remainder of this a Contract. ARTICLE t. That for and In oonulderatbn of payments and agreements hereinafter mentioned, to be made and performed by the Clgr, and under the conditions expressed In the bonds attached hereto, ff any, Contractor agrees with Clty et Contractor's cost and expense, to do all the work and fumlieh ell the materials except such as are mentioned in the Specifications (attached hereto, at Section 3) necessary to construct end cgrnplete in good, workmanlike end substantial manner, of to the satisfaction of the City of Po ey, in accord■noe wth the Special Provisions for this project as setforth heroin. ARTICLE li. Said Contractor agrees to receive end aoospt as full compeneatton for finishing all materials and doing all the work contemplated and embraced in the Contract an amount equal to the sum of the totals for the items of warn. The total for each Item of work shag be calculated by determining tie actual quantity of each item of work end multiplying that actual quantify by the unit price proposal by the Contractor for that Item of work. Contractor further agrees to be responsible and hold City harmless from ag loss or damage arising out of the nature of work aforesaid. or from the acts of the elements, or from any unforeseen difficulties or obstructions which may odes or be encountered In the prosecution of the work until its acceptance by City. Contractor agreee b be responsible end hold City harmless from all risks of every daacrlption and under the control of Contractor pursuant to tre terms of the Contract, end connected with Contraactor"s performance of this Contract. The Contractor is responsible for all expenses Incurred by or in consequence of the suspension or discontinuance of work, and/or faithfully completing the work, end the whole thereof. In the manner and according to the Plans end Specifications end requirements of the City, ARTICLE III. The City hereby agrees end promises the Contractor to employ, and does hereby employ. said Contractor to provide the materiels and to do the wok according to the terms and conditions herein contained and referred to, for the prices started, and hereby Contracts to pay the same at the time. In the manner, and upon the coed#ions above Bet forth. Said parties for themes, to their heirs, executors, administrators, successors and assigns, do hereby agree to gull performance of the Covenants herein contained. ARTICLE IV. It is further expressly agreed by and between the parties hereto that should tilers be any conflict between the tonne of this Instrument and the bid or proposal of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of the saki terms of proposal cunt c#In herewith, 104 of 585 ARTICLE V. Contractor chaff defend and otherwise hold City harmless from any end a claims, complaints, mouses of action, of any nature whatsoever, arising from Contractors performance of the Contract. In performance of this Provision, Contractor shall name City es additional Insured on a policy of general lability as required per Section li, Item 19. The Covenant contained herein applies to al sums paid as a result of the above claims. Including court its and reasonable attorrrey fees whether or not the matter results in judgment. ARTICLE VI. Pursuant to Public Contract Code Becton 22300, provisions for substitution of securities for performance retenfiona will be affowed. ARTICLE VII. EACH AND EVERY COVENANT, CONDITION AND PROMISE contained in the Specifications, General Provisions and Special ProvISIons for eatd project are herein Incorporated by reference as if fully set forth herein and constitute a materiel pert u consldaratlon to the City In entering into this Contract with Contractor. (Alt Items In the Contract wIH be the same as in the IN WITNESS WHEREOF, the parties to those year and date first above written. Contractor; Signature Title: Patrick Mahoney, President Title: City Manager of the City of Poser ATTEST: City Clerk: APPROVED AS Ta FORM: City Atto nary In the Secretary 105 of 585 SECTION V PROPOSAL FORMS To IligStiAZgemit, acting by and through its Cry Council. hersin called the "City" for URBAN FORESTRY MAINTENANCE semnces to be prayed to said Cilty: Pursuant to end in compliance with the Request for Pmpaaak (RFP) and in accordance with the Specifications contained herein, the undersigned proposes contractor, having become familiarized with the terms of the contract, plans, specifications, and addenda, hereby proposes and agrees to perform, within the time stipulated, the outlining, including ell of its component paste, end everything required to be performed, all In strict conformity with the plans and spedflcattons and other contract documents, Including all addenda for the sums set for the sites listed herein; it is understood end agreed that the contract amount Includes all appurtenant expanses, taxes, royalties, and fees. In the case of discrepancies between numbers of the pongees! amount and the words stating the amount, the WOWS shad govern over numbers; IN COMPLIANCE with the Notice. Specifications, end epeeist provisions hereinberore stipulated, the undersigned, with full comprehension Thereof, hereby proposes 10 perform the entire work for the prices Bet forth below upon which award of Coact la made; Work not Identified In the contraot will be billed on a time and materials bests using the same standard hourly rate (*doh stall livolude lobar; vehicle cam. tools end equipment, overhead and profit). For the purpose of propose/ evaluation, proposing contractors shall enter en the proposal schedule the standard hourly rays as requested. Notice of acceptance or requests for additional Information should be addressed to proposing contractor at the emal address staled below. 5uelness Names Oorthaotor (Please Pry): Authortzsd Agent or Officer: ittle: Email Address: vaonzalezdawcattoc,com Addlers: 2200 E. Via Burton Anaheim, CA 921306 35 106 of 585 PROPOSAL FORMS Service Address: 8524 Commerce Avenue, SUB* B San Diego, CA 92121 Te ona (714) 991-1900 City of Pour business Certificate No.: BC-007041 Expiration Da97/20,201 CA License No: 386784 License Expiration Doke 12f31118 MR Registration No.: [Remainder of Page Lott Blank In6eniianally] BS 107 of 585 FEE SCHEDULE — MAW TENAUCE Deeorl. .. _ Grid Tree Trimming" Tres fa" Pnme Fan Palm OM irialkfar Fees Palm (Waning) Sinks Tritrurotno 04 *' :kid 7-1 NH" a Each - . — . Trinv 13-1r DEW Each Tr r g 1I 24` r Es* Service pa,. rrt WWI Each Service Mose Id -wiling 21'+ W Two . - Grind , .} I VACI Tree novas •' : �_ , Rninural ik.. Plant litree i Not 2ir box he* r rnit Eaoh Each Each Each Each 4?.tf0 Pnotlilliple L' Eng Miss =Ott= wag" Each VIM Phu t sr box tree wvotd ice* EPl opp,04 Pleat 4r boat tree wrRB' Each 1�7ao a0 ant ++t$' bast taiOut Imo* Each i Root PrunktptiToot Baader Installation 12" or it blo harder Linear $ gem OPS Tree Irweniary (per tree she) Each s.00 Tin, Inlet:bon — Each MAD TOTAL LIMO Tray planting Urdudes tree, maims, and planting coed, "Oki iVt mnlrrg, Pse raising, and service requests triads* dean* and disposal. *"Tree and stump removal includes cleanup and dam. MAINTENANCE • PROPOSAL AMOUNTS WI WORDS: Seven thou and six hundred forty-eight dopers Filly cents cents Proposing Contractors Signature - ,I : 1s12+9118 Cow Company 108 of 585 FLOE SCHEDULE - HOURLY RATES Description tilonday -Friday (1100 A.M. - 4;00 RM. Air (410 Past 1403 Hoare - 7:00 A.IIi.), and Wookandol Regular Tree Maintenance Crew Ltd 3•nten 210.E nte Erne:germ Grew Rental (3-man crawl* Na 270.00 Arbodd S vi ea.(Reoor Wdthisryj MAO We Specialty Equipment (Crane Radler Or 100.00d� l280.80 ... ult1 Nread ner Atborkt' 150 Pest Con 1E0.00 $ 2400 Waterlog trees off (fir tnu# & . $ 70.00 .150.00 TOTS $850.00 % tudes overhead and vehicle HOURLY MT o PROPOSAL AMOUil1'i101 IN WOWS; Monday ^Risley Eight hundred Oily Zero A. House„ Holidays, teal Weekends YIP Dollars Cents Eight hundred twenty Dears ban Cents propoetng CaMriw�b letters: .,�..,,,�,,, Dat..512110B Cortraceee comma _ice[ Coast Asterism 6n0. COOPERATIVE: PURCHASING la Is Intended the sny Other public away (ag., thy. cow* dehlut. pew Stittedy, pubic mem, mullclperay, and ether polNteel subdMelon er pude =pardon) ihel have the option to perYdpeie fn env mums reek es a reed eel this solleltekn al the sane prose. The City anal Incur roiinanol d respeenidovIn oonnsJon erdlh Ow pedlars hy another patio enemy. The pubic aping shd tzezoi aoh reeponsIbilly for *clog order* and makingpeinerente to the vendor. 33 109 of 585 GUARANTY To the City of Icy, City Courrcli, for. URBAN FORESTRY MAINTENANCE SERVICES The undersigned guarantees the work included in this project(s). Should any of the materials or equipment prove defective or ehould the work ae a whole prove defective, due to faulty workmanship, material furnished or methods of Instdatton, or should the work or any part thereof fail to operate properly as orIgially Intended and In accordance with the Specificatlons, due to any of the above causes, all within the number of months the site is to be maintained after date on which this Contract is accepted by the City, or the date of recordation of Notice of Completion, whichever is the later, the undersigned agrees to reimburse the City upon demand, for ifis expenses incurred In restoring said work to the condition contemplated in said project, Including the cost of any such equipment or materials replaced and the coat of removing and racing any other work necessary to make such replacement or repairs, or upon demand by the City, to replace any such material and to repair said work completely without' cost to the City so that said work will function successfully as originally contemplated. The City shall have the unqualified option to mette any needed repts smorte or rcpoira Itself or to have and i replacements or repairs dome by the undeigned. In the event the City elects to have said work performed by the undersigned, the undersigned agrees Met the repairs shall be made and such materials as are necessary shall be furnished and Installed within a reasonable time after the receipt of demand from the City. If the undersigned shall fail or refuse to comply with his obligations under his g vranty, the City shall be entitled to all coat and expenses, Including attorneys fees, reasonably Incurred by reason of the said failure or refusal. By: Patrick Mahoney, Preaidant Tido .tune 27, MG Dole PTO BE SUBMITTED WITH EXECUTED CONTRACT*' 110 of 585 WORKERS' COMPENSATION INSURANCE CERTIFICATE Pursuant to Section 1801 of the State Labor Code, each Contractor to whom a public works Contract has been awarded shad sign the following certificate and shall submit same to the City of Poway prior to performing any work on the Contract: "I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be Insured against liability for Workers' Compensation or to undertake suit - Insurance In accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of die Contract," By: Tits June 27, 2016 Date Section 3700 of the State Labor Code reads In part as follows: "Every employer except the State shall secure the payment of compeneadon in one or more of the following greys: (a) By belrg insured against liability to pay compensation by one or more Insurers duly authorized to write compensation Insurance In thls state, (b) By securing from the Director of Industrial Relations a certificate of consent to self - insure, either as an individual employer, or as one employer In a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to sett Insure and to pay any compensation that may become due to his employees," '*TO BE SUBMITTED WITH EXECUTED CONTRACT"' 111 of 585 SECTION I REQUEST FOR PROPOSALS M is hereby given that the City of Poway, Caftecn wilt accept sealed propose V. the Public Works Achnsmotration Office, 14467 Labe Poway Road, Poway, Cry 92OR4, until Z:O0 Nit On TVesd4e tram is ENS. PropneeEs Wyk be aubmltted in plain, *baled envelopes, maw on the outside with the project tie. URBAN FORESTRY MAINTENANCE SERVICES RFP it .Pragtedt Description: To furnish all wafer/VA* OfirViCes, skilled Mar, materials, equipment, tools, 'neutron*, permits and fees, as neoesaaary, to render the .services according to the specification set forth In thla outno. The auccssefU proposal by qualified contractor to proms profeaeional Urban Forestry Maintenance Services wit teult In a contract with the Cdy of Poway The contractor will supplement City staff. No proposal will be accepted unless it Is made on proposal forms furnished by the City of Poway Proposals will be evaluated on the bails of =Panana) and ability to perform, which includes the equipment Net, but not limited to, eacpenance and history of the fimtr as well as upon the amount proposed, The Cyr will also consider a cooperative purchasing agreement that mks our purchasiing require nerte per 3.2$ in the 1iIunrcilpal Code. The a of the Contract, if rrade, will be made to the proposer, who m the sole discretion of the City is beet able to perform the Contract In .manrier most beneficial to the City of Poway The City reserves the right, after opening proposals, to reject any or ail , or to v any informality the propel, to a any �r l iroan of it Standard Contract Length: The length of this Contract shelf be for two (2) ors on July 1, 2010 through June 30, 2013.The Contract may be extended with a total of three (3) s$parate one-year term extensions. The maximum length of the Contract can be up to fire. (5) yeara The option to renew may be by mutual agreement between the City and the selected Contractor Award of the Contract and any Contract extensions are subject to Ctty Council appropriation of funds Each renewal period (fib, the Contractor's costs shall be adjusted based on the annual change in the previous calendar year's Consumer Price index for the San Diego area (All Urban Cc►nsmrrera .CPI-U) or 5%, whichever is lees. The- first actiustment would odour no earlier than July 1, 2016 Proposal documents may be purchased for a ride fee of $7.00 per sot from the Cfty of Pity Customer* Services Counter, lolled at 13326 Civic Center .Drive, CA t 64 during regular business hours or free of Via ode Website at . For further information contact. Diane Menn, •Pubttc Work. Supervisor, at #lQ8- 4704 or by email at simptullockweyArq. rbATE. Troy Bankston, Director of Public Works 1 112 of 585 Certificate of Insurance TIES CERTIFICATE lS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON YOU THE CERTIFICATE HOLDER MIS CERTIFICATE IS NOT AN INSURANCE POLICY AND DOES NOT AMEND, ,, OR ALTERM{ THE COVERE _IFFORDFD BY THE POLICIES LISTED BELOW. POLICY LIMITS ARE NO LESS THAN THOSE LISTED, ALIROUGFLPOLICIES MAY INCLUDE ADDITIO- AL SUBLIMITILIM FES NOT LISTED BELOW This is to Certify that i WEST COAST ARBORiSTS; INC 2200 EAST VIA BURTON ANAHEIM CA 9280E L 1 NAME AND ADDRESS OF INSURED tti SURANCC it, at the issue date of this certificate, masted by dm Company tinder the raidcyties) listed below. The insurance afFenied by the lies) in subject to all their tams. e�aelosions and Conditions end is not altered by . iegoicemeat, team or condition ofaay contract or other document with respect to witch thismsy be issued - II! TYPE OF POLICY I--t EXF DATE 0 CONTINUOUS Q E :-ENDED MI POLICY TERM , POLICY NUMBER LI.1IIT OF LIABILITY WORKERS COMPENSATION Statutory Limits 7/1/2018 1 WA7-66D-039499-077 I COVERAGE AFFORDED UNDER WC LAW �yO�F�THE FOLLOWING STATES : ND, ti WAce EMPLOYER$ LIABILITY Bodilylii by Amnion Laity by Aecideat Bodrly Injury By Disease $1,000.000 p‘d;r,.Li,aa Bedi1y Nary Ay neeew. $1.000.000 a:eh Prraoe CE COMMERCIAL GENERALLIABILITY M OCCURRENCE Q CLAIMS MADE 7/1 /2018 TB2-661.039499-017 General Aggregate $2 000 000 Products 1 Completed Ovations Aggregate $2,000,000 Each Occurrence $1,000,000 Persona & Advertising Injury 31,000,000 Per Pemmt I Orgmnirsli7a RE RO DATE Other youRu9 e to remises rented to A 0,000 Med ical tense 55,000 AUTOMOBILE LIABILITY OWNED 0 NON -OWNED ti�cED 7/1/2018 AS7-661-039499-037 EL Co aLunit B.I.And P.D. Combined EachPoreon Each Accident cc Occurrence 1 Inch AA+eMd sit Cr Oaetureace OTEEl( Umbrella Excess IiabflHty 711/2017 - 71112018 TH7-861-039499-047 $5,000,000 Per Occurrence/Aggregate ADDITIONAL COMMSNTE The City of National City and its officers, agents and employees areaddHlonal insured with regards to general liability and automobile Hab:Jlty, as Met Were -slimy appear, where requited by mitten sorted. The insurance afforded byflee general Ilabtlity poliw for the benefit of the additional insured analbe primary and non-contributory. Waiver of Subrogation is bidudeci in favor apecillo Jobs of in6ureq performed under written additional insured and on workeT where applicable law.ion, wraete allowed by statl�e, and appiles only to the • If the certificate expiration date is oaivuwsa or extended term you urr i be notified if coverage is terminated or reduced before the certificate empination daft, NOTICE OF CANCELLATION: (NOT APPLICABLE UNLESS A NUMBER OF DAYS IS EN'rERED BELOW„ SEFORB THE STATED EXPIRATION DATE THE COMPANY WILL NOT CANCEL OR REDUCE THE. INSURANCE AFFORDED UNDER THE ABOVE POLICIES UNTIL AT LEAST 30 DAYS NOTICE OF SUCH CANCELLATION HAS BEEN ML9J.ED TO: [—City of National Mt. 1 1243 Niatioliai viiy oi National City CA 919vr;. 550 L Liberty Mutmal Iaserance Group amine itan Los Ar,getea 10602 818 VI/ 71h Street, Suite 550 Los Angeles CA 90017 JOFFICE AUTHORIZED REPRESENTATIVE 0564408 213443-0782 6//312017 PHONE DATE ISSUED This certificate is executed by LIBERTY MUTUAL INSURANCE GROUP as respects swat insurance as is afforded by those Companies NM 772 07-10 36123642 i Lit 2613 i 7/17-7/16 WW1, aL/2, wC/2. Ws 1 AMU& 6M.C41a , 6 13/2617 71:20.48 s.Y tmrJ ; Raga o! LDJ COI 208896 02 11 113 of 585 POLICY NUMBERTB2.661-039499-017 COMMERCIAL GENERAL LIABILITY CO2037041d TMIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY., ADDITIONAL. INSURED - OWNERS, LESSEES OR CONTRACTORS - COMPLETE'COMPLETE'D OPERATiONS This endorsement noddies insurance provided ender the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABIUTY COVERAGE PART A Sec:,fon If — Who Is An Insured Is E.•nendexl to include as an additional insured the persc;r(s) or ai-ganizadon(s) shovm in the Schedule. but only With respect to Gbility for "badly injury' tc "property dames." causal. in wilds or in part by "your wcrk" a1. the Iocatlan designated and described in the Schedule of this endcrsement Wormed for that addrtiene Insured and Included in the "products-ccmpleted cperadons haaard . However_ 1, The insurance afforded to such addltlaral insured only applies La the extent pe-rnifted by lam: and 2. If coverage provided to the additienal insured Is required by a contract or agreement, the insurance afforded to such additional insured tn11 not f broader than that which you are required by the contract or agreement to provide for such additions! insured_ B. With respect to the Insurance afforded to these additional Insureds, the following is added to SecJaa If! — Limita Of Inelxrrstc.: If cc arage provided to the sddr ie rtal Insured is required by a contract or agreement the most we we pay opt behalf of the additional insured is the amauntof insurance 1. Required byte contract ar agreement or 2. Avalable under the applicable Limits of insurance shown in the Declarations; whichever is less. This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations. SCHEDULE �lam3 Oi i*d6itIonal Inscred Person(s) Or Organ!za1fon(s): All 'persons ar organizations wt'h wham you have entered into a whim contract or dement, prier to an occurrence or offense. to provide additional Insured streUS. Locelion And Description Of Completed Operations Al! locations es required by a wnIten contract or agleaillEet entered Into prior to are occurrence or offense. Infennaiion required to complete tills Schedule, if nil shown above, will be shown in the Declarants. CG 20 37 tM 13 Sri Insurance Services Office, Inc.. 2012 Pape 1 as 1 114 of 585 POLICY NUMBER: TB2-661-039499-Q17 00eA iCSI*MIAL. GEaE IAA uefzury 100413 TH15 ENDORSEMEta CHANGES THE POLICY. PLC LEAD rt CAREA,LLV. ADDITIONAL INSURED - OWNERS, 'LESSEES OR CONTACTORS SCHEDULED PERSON OR ORGANIZATION This endorsement modifies Insurance provided under thefdlowing: COMMERCIAL GENERAL LIABILITY COVERAGE PART A Suction II — Who is An Inure Is amended to include as at adrikimai insured the person(s) or arganizatim(s) shaven in the Schedule, but an u!y w respect to Milky for "bodily injury', °propeiy damage" or "personal and adverdsing Injury caused. In whole cr in part. try: 1. Your acts or omissions; or 2. The acts or atnisslons cf those aetiig on your behalf in the prfarmzence of ,your ongoing opesratio;rs far the additional Insured(s) at the Locations) designated above. Hoxe+rec 1. The insurance afforded to such adeonal insurers only applies to the etdent permitted by lava, and If coverage provided to the additional insured Is required contractby a or agreement the Insurance edi additional insured M l not be broader than that which you are rwrirer.l. by the emtract or agreement to provide ex such additonal insured. 0. With respect to the !n$era dit.15,14a,i to these additional insureds, the following additional e' maim$ apse Phis Insurance does not apply to "bodily injury'° a °i "occurring alter. KPAIN orititinznalkusurced Persenki Or Oren"mil: Arty owner, Lessee, ar contractor for whom you have agreed in writing prior to a loss to provide Mobility insurance 1. M work, tnciutteg- materials, parts or equipment tarnished kt connection with such work, on the prefect (other than mice. maintenance or repairs) to be performed by or on behalf d the additional Insureds) et the location of the covered operations has been completed; cr 2. That po em of "your work" out of which the injury ar damage arises has bean put to its intended use by arry persm or organization otter then snots' ccolractor or subcontractor egad in performing operations for a principal as a peed the same project. C. With respect to the insurance afforded to these acid/danai Insureds, the following is added to Section IIh — LImr!ros Of deserranced If coverage voided to the additional Insured is required by a txmtract or agreement, the most we will pay on behalf cf the aciditiortai insured is the amount of insurance~ 1. Requked by►the =Trail ar agreerneek ar 2. Available under the applicable limits of Insurance shown in the Declar ions; whichever be less. ills endorsemiret shall not increase the appiceb a Limits c# Insur ica sham in the Declarations. SCHSVILP h to:h(s) Of Covered Any location listed In such agreement Informations required to corrtpfetethis Schedule; If not shown above. will be shown h t;-e Declarations_ 7.lt 10 04 i3 0 Insurance Services Office, Ire., 2dfl2 P781) 1 ts: 1 115 of 585 POLICY NUMBER: AST-BS1-03S48S-037 C1:AMC/ALAUTO t',A 20 431 g 13 THIS ENI7OMEtT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LLY. L ESICN TED 111,ISURED rOft COVERED AUTOS LIABILITY COVERAGE This endorsement modifies insurance provided under the following: AUTO DEALERS COVERAGE FORM BUSINESS AUTO COVERAGE FORM MOTOR CARRIER COVERAGE FORM Wflh respect to coverage provided by *la endoreement, the provision of the Coverage Form apply urdass modified by the endorsement. This endorsement Identifies petunia) ororgnnlzatlon(s) who are "insureds? for Covered Autos Whiny Coverage under Una Who is An Insured provision of the Coverage Form_ Thls endorsement does not alter coverage provided In the Coverage Form i l#ieOULE *ono Of F ortre) Or OrganlaeitIc ): Any per4o:r o:' or arEzicrr wham you have agreed In writing to add is an additio el Insured, but only to cavarnpe en:1 rrrairnurn limits of losursnoe reqtrked by the v.Trtien rttresmint, and in no event to exceed either tha scope cf co rage or the Mee of insurance provided In Ilia pray. t rio:reed-A royrilrcd tide Schedule, If not shown above, vdil be shown in the Declarations. Each person or orlpar ization damn in the Schedule is an "Insured" for Covered Autos LlabilityCoverape, but only to the extwdthat person or organization 'wallies a8 an uirnsuradt Under the Wi^.o Fr: wRR Er rivedproticion contained In Paragraph A.1. of Section tl - Covered Autos UahI ty Coverage in Ma Business Auto end Motor Carrier Coverage Fie and Paragraph D.2. of Section 1 - Covered Autos Coverages of the Auto Dealers Coverage Form. CA 20 4$1013 &Insurance Ssrvicea Office, Inc., 2011 Pegs to:1 116 of 585 COXIMMCIAL GOMA. LtritOltrt 24.1411 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ !T' CAREFULLY, :PRIMARY AND NONCONTRIBUTORY - OTHEINSURANCE CONDITION This endorsement modifies insurance pr oude ri rsnder the following: COMMERCIAL GENERAL LIAt ILfl V COVERAGE PART PRODUCTS/COMPLETED OPERATIONS UABIUTY COVERAGE PART The following Is added to the (Mar letaananto Condition and supers proVslon to the contrary. Primary And Noncontributory Insurance This Insurance Is primary E, and will not seek contrixdion from any other insurance Table to an additional Insured under your policy provided that (1) The Rdcitticnal insured is a Named Insureol under such other Insurancm and { You have agreed In vurithp in a contract or anent this insurance would be primary and would net seek conldbudon from any cater Insurance alienable 1a the addItone insured. C<s 20 01 0`.3 C insurance Services OITice, Inc., 2012 of.• i 117 of 585 WAWA OF OUR ^JGHT TO R.ECOICER FROM OTHERS extothustasorr FORMA We have the right to recover our payments from anyone liable for an injury =Mated by this policy. We wif riot enforce our right against the person or organization named in the Schedule. (this agreement applies only to the extent that you perform work under a written contact that requires you to obtain this age neat from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Sthedu[e The additional premium for this endorsement shag be 296 of the Calfomla workers' compensation premium otherwise due on such remuneration. Additional premium is a percent of the California. Manual Workers Compensation premium. Subject to a rnlnurnum premium charge of $250. Person or Oroanptation Where mqul ed by contract or written agreement prior to Toss and allowed by law job Da tion Issued by thaw ircuran a Corporatlon21814 For attadhmer+tio Policy titoMA7.68D-039499 c77 Etfectfve Date Premium $ iss ed to West Coast rrborrsi. irtc. ;'C B'S 03 0 r. s t •s# 1 Ed: DM 584 118 of 585 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY WAIVING THE FORMAL BID PROCESS PURSUANT TO NATIONAL CITY MUNICIPAL CODE SECTION 2.60.260 AND AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH WEST COAST ARBORISTS, INC., FOR SPECIALIZED TREE TRIMMING, REMOVAL, AND PLANTING SERVICES IN AN AMOUNT NOT TO EXCEED $90,000 BY PIGGYBACKING THE CITY OF POWAY'S URBAN FORESTRY MAINTENANCE SERVICES CONTRACT WHEREAS, on November 1, 2016, the City Council adopted Resolution No. 2016-17 to enter into an Agreement with West Coast Arborist, Inc. (WCA) in an amount not to exceed $90,000 to assist the City's Park Maintenance staff with addressing the growing backlog of tree trimming requests for specialized service; and WHEREAS, through implementation of a grid -based tree trimming program, WCA proved to be effective in assisting City crews with clearing the backlog, which allowed City crews to focus on maintaining the City's specialized tree trimming schedule; and WHEREAS, tree trimming support services are needed this year as City crews are challenged to maintain the grid schedule due to emergency calls for service and the need for such specialty work, such as stump grinding and tree removals; and WHEREAS, the City of National City has an opportunity to 'piggybacking" the City of Poway's Urban Forestry Maintenance Services Contract with WCA for specialized tree trimming support services for an amount not to exceed $90,000; and WHEREAS, Section 2.60.260 of the National City Municipal Code provides that the City may buy directly from a vendor at a price established through competitive bidding by another public agency whose procedures have been determined to be in substantial compliance with the City's procurement procedures, and such a determination has been made in this case. It is therefore recommended that the purchase be made without complying with the competitive bidding procedure set forth in the Municipal Code. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby affirms the purchasing agent's determination that the City of Poway's procurement procedures are in substantial compliance with the City's, and pursuant to Section 2.60.260 of the Municipal Code authorizes the waiver of the bidding process. BE IT FURTHER RESOLVED that the City Council hereby authorizes the Mayor to execute an Agreement with West Coast Arborist, Inc., for specialized tree trimming, removal, and planting services through December 19, 2018, with an option to extend for three one-year terms, in an amount not to exceed $90,000 by utilizing City of Poway's Urban Forestry Maintenance Services Contract. [Signature Page to Follow] 119 of 585 Resolution No. 2017 — Page Two PASSED and ADOPTED this 19th day of December, 2017. ATTEST: Michael R. Dalia, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ron Morrison, Mayor 120 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 121 The following page(s) contain the backup material for Agenda Item: Investment Report for the quarter ended September 30, 2017. (Finance) 121 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO.: ITEM TITLE: Investment Report for the quarter ended September 30, 2017. PREPARED BY: Ronald Gutlay PHONE: 619-336-4346 EXPLANATION: See attached staff report. DEPARTMENT: Fina /a.� APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. See attached staff report. APPROVED: Ll'* , FINANCE APPROVED: MIS ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION FINAL ADOPTION STAFF RECOMMENDATION: Accept and File the Investment Report for the Quarter ended September 30, 2017. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Staff Report 2. Investment Listings 122 of 585 CALIFORNIA -f- N I.'ION1 L CI r V INCORPORATED City Council Staff Report December 19, 2017 ITEM Staff Report: Investment Report for the quarter ended September 30, 2017. BACKGROUND The California Government Code (§ 53646(b)) requires that, when the treasurer or the chief fiscal officer of a local agency renders to the legislative body of the agency a quarterly report on the agency's investment portfolio, such report shall include the following information regarding all securities, investments, and moneys held by the local agency: ➢ type of investment; ➢ issuer (bank or institution); ➢ date of maturity; ➢ dollar amount invested; and ➢ current market valuation as of the date of the report. In addition, the Government Code (§ 53646(b)(2)) requires that the report state the City's compliance with its investment policy and include a statement regarding the ability of the local agency to meet its pool's ability to meet its expenditure requirements Code (§ 53646(b)(3)). OVERVIEW OF CITY INVESTMENTS The City's pooled investment portfolio balance as of September 30, 2017 is summarized below and compared to the balance as of September 30, 2016. Table 1 9/30/2017 9/30/2016 Book Value 1 $ 63,277,638 $ 59,156,053 Market Value 2 $ 63,347,559 3 $ 59,139,295 (1) actual cost of investments (2) amount at which the investments could be sold (3) total includes withdrawals of $7,500,000 plus investment gains since 6/30/2017 The California Treasurer's Local Agency Investment Fund ("LAIF") and The County of San Diego Pooled Money Fund comprise 52.93% of the City of National City's total investment portfolio (40.18% and 12.75%, respectively). These are liquid investment pools that allow participants to earn market rate returns, while retaining access to funds within 24 to 48 hours of a 123 of 585 Page 2 Staff Report: Investment Report for the quarter ended September 30, 2017. December 19, 2017 withdrawal request with no penalty. The remainder of the City's portfolio is composed of investments that may be liquidated at any time. However, these investments likely do not provide the short liquidity (i.e., quick access to funds) of the pooled money funds, and liquidation/withdrawal of these investments is at the risk of loss and/or penalty to the City. Summaries of the City's investment portfolio are illustrated below. INVESTMENT PORTFOLIO SUMMARY BY ISSUER/MANAGER As of September 30, 2017 Table 2 Issuer/Manager Total Market %of Book Value Market Value' YTM Portfolio Local Agency Investment Fund Chandler Asset Management County of San Diego 25,396,333 $ 29,738,759 $ 8,142,546 $ 25,450,489 2 29,819,070 8,078,000 40.18% 47.07% 12.75% Totals for September 30, 2017 63,277,638 63,347,559 100.00% 1 includes accrued interest 2 calculated on 30/360 basis; includes LAIF participation factor of 0.999042071 TOTAL MARKET VALUE $63,347,559 County of San Diego $8,078,000 Chandler Asset Management $29,819,070 II' Local Agency Investment Fund $25,450,489 124 of 585 Page 3 Staff Report: Investment Report for the quarter ended September 30, 2017. December 19, 2017 INVESTMENT PERFORMANCE BY ISSUER/MANAGER For the Quarter Ended September 30, 2017 Table 3 Total Market Value' Issuer/Manager Yield 6/30/17 9/30/17 Change Period Return (Net)3 Local Agency Investment Fund $ 32,861,570 $ 25,450,489 $ (7,411,081) 2 0.27% 1.09% Chandler Asset Management 29,736,154 29,819,070 $ 82,916 0.30% NIA County of San Diego 8,092,000 8,078,000 $ (14,000) 0.22% 0.87% Totals for September 30, 2017 $ 70,689,724 $ 63,347,559 $ (7,342,165)1 0.79% 1.96% 1 includes accrued interest 2 Withdrawals 7/7/17 $500,000, 7/21/17 $1,500,000, 8/7/17 $2,500,000, 8/10/17 $500,000, 9/11/17 $1,000,000, 9/15/17 $1,500,000 3 Annualized COMPLIANCE STATEMENT All of the City's investments are in compliance with the City's investment policy (City Council Policy No. 203) and the California Government Code (§ 53601 et seq). FINANCIAL STATEMENT Realized and unrealized gains for the period, reflected below, were $129,797. These changes include changes in security market values, gain or loss from the sale of assets, accrued interest, and reinvested interest/earnings. Issuer/Manager Chandler Asset Management County of San Diego LAIF Gain/(Loss) 33,618 17,695 78,484 Totals for September 30, 2017 $ 129,797 The difference between the changes reflected in the previous two tables is attributable to the purchase and sale of securities for which the first of the tables accounts but the second table typically does not (unless an investment is sold before maturity). STAFF CERTIFICATION Staff certifies that there are sufficient funds to meet the pool's expenditure requirements. RECOMMENDATIONS Accept and file the Investment Report for the quarter ended September 30, 2017. 125 of 585 LAIF Regular Monthly Statement Page 1 of 1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916)653-3001 CITY OF NATIONAL CITY FINANCE DIRECTOR 1243 NATIONAL CITY BLVD NATIONAL CITY, CA 91950-4397 PMIA Average Monthly Yields Account Number: 98-37-576 Tran Type Definitions www.treasurer.ca.gov/pmia-laif/laif.asp November 07, 2017 September 2017 Statement Effective Transaction Tran Confirm Date Date Type Number Authorized Caller Amount 9/11/2017 9/8/2017 RW 1547775 JAVIER CARCAMO -1,000,000.00 9/15/2017 9/15/2017 RW 1548230 JAVIER CARCAMO -1,500,000.00 Account Summary Total Deposit: 0.00 Beginning Balance: 27,896,332.80 Total Withdrawal: -2,500,000.00 Ending Balance: 25,396,332.80 1_126 of 585 https://laifms.treasurer.ca.gov/RegularStatement.aspx 11/7/2017 LAIF Regular Monthly Statement Page 1 of 1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916)653-3001 CITY OF NATIONAL CITY FINANCE DIRECTOR 1243 NATIONAL CITY BLVD NATIONAL CITY, CA 91950-4397 PMIA Average Monthly Yields Account Number: 98-37-576 Tran Type Definitions www.treasurer.ca.gov/pmia-laif/laif.asp September 18, 2017 August 2017 Statement Effective Transaction Tran Confirm Date Date Type Number Authorized Caller Amount 8/7/2017 8/7/2017 RW 1545530 JAVIER CARCAMO -2,500,000.00 8/10/2017 8/10/2017 RW 1545813 JAVIER CARCAMO -500,000.00 Account Summary Total Deposit: 0.00 Beginning Balance: 30,896,332.80 Total Withdrawal: -3,000,000.00 Ending Balance: 27,896,332.80 1_127 of 585 https://laifms.treasurer.ca.gov/RegularStatement.aspx 9/18/2017 LAIF Regular Monthly Statement Page 1 of 1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916)653-3001 CITY OF NATIONAL CITY FINANCE DIRECTOR 1243 NATIONAL CITY BLVD NATIONAL CITY, CA 91950-4397 Effective Transaction Tran Confirm Date Date Type Number 7/7/2017 7/6/2017 RW 1540842 7/14/2017 7/13/2017 QRD 1542437 7/21/2017 7/21/2017 RW 1544327 Account Summary Total Deposit: Total Withdrawal: PMIA Average Monthly Yields Account Number: 98-37-576 Tran Type Definitions Authorized Caller JAVIER CARCAMO SYSTEM JAVIER CARCAMO 80,206.86 Beginning Balance: -2,000,000.00 Ending Balance: Amount -500,000.00 80,206.86 -1,500,000.00 www.treasurer.ca.gov/pmia-laif/laif.asp August 21, 2017 July 2017 Statement 32,816,125.94 30,896,332.80 1_128 of 585 https://laifms.treasurer.ca.gov/RegularStatement.aspx 8/21/2017 Untitled Page Page 1 of 1 BETTY T. YEE California State Controller LOCAL AGENCY INVESTMENT FUND REMITTANCE ADVICE Agency Name NATIONAL CITY Account Number 98-37-576 As of 10/13/2017, your Local Agency Investment Fund account has been directly credited with the interest earned on your deposits for the quarter ending 09/30/2017. Earnings Ratio Interest Rate Dollar Day Total Quarter End Principal Balance Quarterly Interest Earned $ $ .00002942867511750 1.07% 2,666,919,928.42 25,396,332.80 78,483.92 http://laif.sco.ca.gov/Result.aspx 129 of 585 11/7/2017 Q4AVIVES1-43,. State of California o PMIA L, Pooled Money Investment Account L. NIiiiiit a- Market Valuation ��Jpoulo,,� 9/30/2017 Carrying Cost Plus Description Accrued Interest Purch. Amortized Cost Fair Value Accrued Interest United States Treasury: Bills $ 14,674,811,264.34 $ 14,728,634,539.67 $ 14,723,448,000.00 NA Notes $ 18,827,121,137.72 $ 18,825,793,811.24 $ 18,779,355,000.00 $ 35,404,702.50 Federal Agency: SBA $ 882,001,016.40 $ 882,001,016.40 $ 872,264,699.96 $ 1,109,845.38 MBS-REMICs $ 36,639,144.19 $ 36,639,144.19 $ 38,144,662.40 $ 171,758.71 Debentures $ 1,328,997,141.66 $ 1,328,621,620.83 $ 1,324,530,000.00 $ 2,307,558.75 Debentures FR $ - $ - $ - $ - Debentures CL $ 250,000,000.00 $ 250,000,000.00 $ 249,152,500.00 $ 732,860.50 Discount Notes $ 9,694,389,458.06 $ 9,721,523,694.20 $ 9,720,621,000.00 NA GNMA $ - $ - $ - $ - Supranational Debentures $ 450,315,184.02 $ 450,217,961.80 $ 448,745,000.00 $ 1,053,298.00 Supranational Debentures FR $ 50,000,000.00 $ 50,000,000.00 $ 50,075,500.00 $ 155,944.44 CDs and YCDs FR $ 625,000,000.00 $ 625,000,000.00 $ 625,000,000.00 $ 1,539,891.61 Bank Notes $ 700,000,000.00 $ 700,000,000.00 $ 699,891,966.88 $ 3,317,666.66 CDs and YCDs $ 12,325,000,000.00 $ 12,325,000,000.00 $ 12,323,151,274.56 $ 32,191,583.30 Commercial Paper $ 6,177,895,486.11 $ 6,189,905,611.10 $ 6,189,559,750.03 NA Corporate: Bonds FR $ - $ - $ - $ - Bonds $ - $ - $ - $ - Repurchase Agreements $ - $ - $ - $ - Reverse Repurchase $ - $ - $ - $ - Time Deposits $ 5,636,740,000.00 $ 5,636,740,000.00 $ 5,636,740,000.00 NA AB 55 & GF Loans $ 695,865,000.00 $ 695,865,000.00 $ 695,865,000.00 NA TOTAL $ 72,354,774,832.50 $ 72,445,942,399.43 $ 72,376,544,353.83 $ 77,985,109.85 Fair Value Including Accrued Interest * Governmental Accounting Standards Board (GASB) Statement #72 Repurchase Agreements, Time Deposits, AB 55 & General Fund loans, and Reverse Repurchase agreements are carried at portfolio book value (carrying cost). $ 72,454,529,463.68 The value of each participating dollar equals the fair value divided by the amortized cost (0.999042071). As an example: if an agency has an account balance of $20,000,000.00, then the agency would report its participation in the LAIF valued at $19,980,841.43 or $20,000,000.00 x 0.999042071. 130 of 585 CM CHANDLER ASSET MANAGEMENT Monthly Account Statement City of National City September 1, 2017 through September 30, 2017 Chandler Team For questions about your account, please call (800) 317-4747 or Email operations@chandlerasset.com Custodian Bank of New York Mellon Lauren Dehner (904)645-1918 Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Prices are provided by IDC, an independent pricing source. In the event IDC does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A. 6225 Lusk Boulevard I San Diego, CA 92121 I Phone 800.317.4747 I Fax 858.546.3741 I www.chandlerasset.com 131 of 585 CA City of National City Account #10162 Portfolio Summary As of 9/30/2017 PORTFOLIO CHARACTERISTICS ACCOUNT SUMMARY TOP ISSUERS Average Duration Average Coupon Average Purchase YTM Average Market YTM Average S&P/Moody Rating Average Final Maturity Average Life 1.70 1.36 % 1.40 1.52 AA+/Aa1 1.83 yrs 1.73 yrs Market Value Accrued Interest Total Market Value Income Earned Cont/WD Par Book Value Cost Value Beg. Values End Values as of 8/31/17 as of 9/30/17 29,762,550 29,724,723 92,192 94,348 29,854,742 29,819,070 34,013 33,618 -2,155 29,776,754 29,797,525 29,712,160 29,738,759 29,712,160 29,738,759 Issuer % Portfolio Government of United States 30.8 % Federal Home Loan Bank 13.5 % Federal National Mortgage Assoc 12.4 % Federal Home Loan Mortgage Corp 10.6 % Federal Farm Credit Bank 4.7 % General Electric Co 2.9 % Toyota Motor Corp 2.0 % Bank of Tokyo-Mit UFJ 2.0 % 78.8 SECTOR ALLOCATION CREDIT QUALITY (S&P) US Treasury (30.8 %) Negotiable CD (1.7%) Supranational (1.5 %) 25°ro 20% 15% 10% 5% 0/0 8.7 % 12.0 % 1 15.8 20.2 % 22.8 12.9 % I 7.5% 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+ Maturity (Yrs) AA PERFORMANCE REVIEW Total Rate of Return As of 9/30/2017 Current Month Latest Year 3 Months To Date 1 Yr Annualized 3 Yrs 5 Yrs Since 10 Yrs 2/29/2012 2/29/2012 City of National City -0.11 % 0.30 % 0.90% 0.51 % 0.92 0.72 % N/A 0.74 % 4.20 % BAML 1-3 Yr US Treasury/Agency Index -0.16 0.24 % 0.69% 0.26 % 0.77 % 0.64 % N/A 0.65 3.66 % BAML 1-3 Yr US Corporate/Govt Rated AAA -A Index -0.13 % 0.30 % 0.91 0.49 % 0.94% 0.81 % N/A 0.86 % 4.89 Chandler Asset Management 132 of 585 Execution Time: 10/2/2017 10:41:28 PM City of National City September 30, 2017 COMPLIANCE WITH INVESTMENT POLICY Assets managed by Chandler Asset Management are in full compliance with State law and with the City's investment policy. Category Standard Comment Municipal Securities BBB rated equivalent by a NRSRO or 4th highest general classification by a NRSRO; 30% maximum Complies Treasury Issues No Limitation Complies Agency Issues No Limitation Complies Supranationals "AA" rated or higher by a NRSRO; 30% maximum; U.S. dollar denominated; Issued by: IBRD, IFC, IADB Complies Banker's Acceptances "A-1" rated or higher by at least two NRSROs; and "A" rated long term debt by two NRSROs; 40% maximum; 180 days max maturity Complies Commercial Paper "A-1" rated or higher by at least two NRSROs; and "A" rated long term debt by two NRSROs; 25% maximum; 270 days max maturity Complies FDIC insured Time Deposits/ Certificates of Deposit Amount per institution limited to the max covered under FDIC; 30% maximum combined certificates of deposit including CDARS Complies Negotiable Certificates of Deposit "A" rated or higher by at least two NRSROs; and/or have short term debt rated "Al" or higher by at least two NRSROs; 30% maximum Complies Corporate Medium Term Notes "A" rated or better by at least two NRSROs; 30% maximum; Issued by corporations organized and operating within the U.S. Complies Money Market Mutual Funds AAA rated or equivalent by at least two NRSROs; 20% maximum; SEC registered with assets under management in excess of $500 million Complies Mortgage Pass-throughs, CMOs and Asset Backed Securities "AA" rated or better by two NRSROS; "A" rated or higher for the issuer's debt by two NRSROs; 20% maximum Complies Local Agency Investment Fund - LAIF maximum LAIF program; Currently not used by investment adviser Complies Prohibited Securities Inverse floaters; Ranges notes; Interest -only strips from mortgaged backed securities; Zero interest accrual securities; Reverse Repurchase Agreements; Foreign currency denominated sec Complies Callable Securities 20% maximum (does not include "make whole call" securities) Complies Maximum Issuer 5% max (except US Government, its agencies and enterprises) Complies Maximum maturity 5 years Complies 133 of 585 (;:411 City of National City Account #1 0162 Reconciliation Summary As of 9/30/2017 BOOK VALUE RECONCILIATION Beginning Book Value $29,712,160.26 Acquisition + Security Purchases $608,536.67 + Money Market Fund Purchases $558,718.55 + Money Market Contributions $0.00 + Security Contributions $0.00 + Security Transfers $0.00 Total Acquisitions $1,167,255.22 Dispositions - Security Sales $0.00 - Money Market Fund Sales $610,792.92 - MMF Withdrawals $2,154.82 - Security Withdrawals $0.00 - Security Transfers $0.00 - Other Dispositions $0.00 - Maturites $525,000.00 - Calls $0.00 - Principal Paydowns $0.00 Total Dispositions $1,137,947.74 Amortization/Accretion +/- Net Accretion $0.00 $0.00 Gain/Loss on Dispositions +/- Realized Gain/Loss ($2,709.00) • ($2,709.00) Ending Book Value $29,738,758.74 CASH TRANSACTION SUMMARY BEGINNING BALANCE $71,754.10 Acquisition Contributions $0.00 Security Sale Proceeds $0.00 Accrued Interest Received $0.00 Interest Received $33,170.29 Dividend Received $548.26 Principal on Maturities $525,000.00 Interest on Maturities $0.00 Calls/Redemption (Principal) $0.00 Interest from Calls/Redemption $0.00 Principal Paydown $0.00 Total Acquisitions $558,718.55 Disposition Withdrawals $2,154.82 Security Purchase $608,536.67 Accrued Interest Paid $2,256.25 Total Dispositions $612,947.74_ Ending Book Value $17,524.91 Chandler Asset Management 134 of 585 Execution Time: 10/2/2017 10:41:28 PM City of National City Account #10162 Income Earned 8/31/17 Thru 9/30/17 CUSIP Security Description Trade Date Book Value: Begin Prior Accrued Accr. Of Discount Settle Date Book Value: Acq Inc. Received Amort. Of Premium Units Book Value: Disp Ending Accrued Net Accret/Amort Book Value: End Total Interest Income Earned Unreal G/L Total Income Fixed Income 02665WAZ4 American Honda Finance Note 2.45% Due 09/24/2020 07/11/2017 07/14/2017 400,000.00 405,848.00 0.00 0.00 405,848.00 4,273.89 4,900.00 190.56 816.67 0.00 0.00 0.00 816.67 0.00 816.67 037833AQ3 Apple Inc Note 2.1% Due 05/06/2019 05/04/2016 05/09/2016 270,000.00 276,928.20 0.00 0.00 276,928.20 1,811.25 0.00 2,283.75 472.50 0.00 0.00 0.00 472.50 0.00 472.50 084670BL1 Berkshire Hathaway Note 2.1% Due 08/14/2019 01/26/2017 01 /31 /2017 285,000.00 287,815.80 0.00 0.00 287,815.80 282.63 0.00 781.38 498.75 0.00 0.00 0.00 498.75 0.00 498.75 166764AA8 Chevron Corp Callable Note Cont 11/5/17 1.104% Due 12/05/2017 259,703.60 685.71 0.00 05/19/2014 0.00 0.00 0.00 05/22/2014 0.00 924.91 0.00 260,000.00 259,703.60 239.20 239.20 0.00 239.20 22160KAJ4 Costco Wholesale Corp Note 2.15% Due 05/18/2021 07/25/2017 07/28/2017 400,000.00 401,208.00 0.00 0.00 401,208.00 2,460.56 0.00 3,177.22 716.66 0.00 0.00 0.00 716.66 0.00 716.66 3130A4GJ5 FHLB Note 1.125% Due 04/25/2018 451,689.00 1,771.88 0.00 Various 0.00 0.00 0.00 Various 0.00 2,193.75 0.00 450,000.00 451,689.00 421.87 421.87 0.00 421.87 3130A7CV5 FHLB Note 1.375% Due 02/18/2021 10/13/2016 10/14/2016 490,000.00 490,960.40 0.00 0.00 490,960.40 243.30 0.00 804.76 561.46 0.00 0.00 0.00 561.46 0.00 561.46 3130A8PK3 FHLB Note 0.625% Due 08/07/2018 08/30/2016 08/31/2016 455,000.00 452,684.05 0.00 0.00 452,684.05 189.58 0.00 426.56 236.98 0.00 0.00 0.00 236.98 0.00 236.98 3130AABG2 FHLB Note 1.875% Due 11/29/2021 03/08/2017 03/09/2017 565,000.00 559,044.90 0.00 0.00 559,044.90 2,707.29 0.00 3,590.10 882.81 0.00 0.00 0.00 882.81 0.00 882.81 3133782M2 FHLB Note 1.5% Due 03/08/2019 05/28/2015 05/29/2015 440,000.00 443,207.60 0.00 0.00 443,207.60 3,171.67 3,300.00 421.67 550.00 0.00 0.00 0.00 550.00 0.00 550.00 Chandler Asset Management 135 of 585 Execution Time: 10/2/2017 10:41:28 PM City of National City Account #10162 Income Earned 8/31/17 Thru 9/30/17 CUSIP Security Description Trade Date Book Value: Begin Prior Accrued Accr. Of Discount Settle Date Book Value: Acq Inc. Received Amort. Of Premium Units Book Value: Disp Ending Accrued Net Accret/Amort Book Value: End Total Interest Income Earned Unreal G/L Total Income 313378A43 FHLB Note 1.375% Due 03/09/2018 09/17/2013 09/18/2013 470,000.00 464,472.80 0.00 0.00 464,472.80 3,087.64 3,231.25 394.93 538.54 0.00 0.00 0.00 538.54 0.00 538.54 313379Q69 FHLB Note 2.125% Due 06/10/2022 06/20/2017 06/21/2017 600,000.00 607,110.00 0.00 0.00 607,110.00 2,868.75 0.00 3,931.25 1,062.50 0.00 0.00 0.00 1,062.50 0.00 1,062.50 313380FB8 FHLB Note 1.375% Due 09/13/2019 536,816.60 3,465.00 0.00 Various 0.00 3,712.50 0.00 Various 0.00 371.25 0.00 540,000.00 536,816.60 618.75 618.75 0.00 618.75 3133EEJ50 FFCB Note 1.03% Due 05/11/2018 05/05/2015 05/11/2015 450,000.00 449,145.00 0.00 0.00 449,145.00 1,416.25 0.00 1,802.50 386.25 0.00 0.00 0.00 386.25 0.00 386.25 3133EFSJ7 FFCB Note 1.3% Due 12/14/2018 12/10/2015 12/14/2015 550,000.00 549,279.50 0.00 0.00 549,279.50 1,529.31 0.00 2,125.14 595.83 0.00 0.00 0.00 595.83 0.00 595.83 3133EFW52 FFCB Note 1.15% Due 07/01/2019 04/08/2016 04/11/2016 400,000.00 401,956.00 0.00 0.00 401,956.00 766.67 0.00 1,150.00 383.33 0.00 0.00 0.00 383.33 0.00 383.33 3135G0D75 FNMA Note 1.5% Due 06/22/2020 12/17/2015 12/21/2015 575,000.00 568,778.50 0.00 0.00 568,778.50 1,653.13 0.00 2,371.88 718.75 0.00 0.00 0.00 718.75 0.00 718.75 3135G0E33 FNMA Note 1.125% Due 07/20/2018 449,689.56 576.56 0.00 Various 0.00 0.00 0.00 Various 0.00 998.44 0.00 450,000.00 449,689.56 421.88 421.88 0.00 421.88 3135G0E58 FNMA Note 1.125% Due 10/19/2018 09/14/2016 09/15/2016 395,000.00 397,010.55 0.00 0.00 397,010.55 1,629.38 0.00 1,999.69 370.31 0.00 0.00 0.00 370.31 0.00 370.31 3135G0N82 FNMA Note 1.25% Due 08/17/2021 01/26/2017 01/31/2017 440,000.00 425,444.80 0.00 0.00 425,444.80 213.89 0.00 672.22 458.33 0.00 0.00 0.00 458.33 0.00 458.33 3135G0RT2 FNMA Note 0.875% Due 12/20/2017 07/31/2015 07/31/2015 350,000.00 350,044.80 0.00 0.00 350,044.80 603.99 0.00 859.20 255.21 0.00 0.00 0.00 255.21 0.00 255.21 Chandler Asset Management 136 of 585 Execution Time: 10/2/2017 10:41:28 PM City of National City Account #10162 Income Earned 8/31/17 Thru 9/30/17 CUSIP Security Description Trade Date Book Value: Begin Prior Accrued Accr. Of Discount Settle Date Book Value: Acq Inc. Received Amort. Of Premium Units Book Value: Disp Ending Accrued Net Accret/Amort Book Value: End Total Interest Income Earned Unreal G/L Total Income 3135G0TG8 FNMA Note 0.875% Due 02/08/2018 12/11/2013 12/12/2013 590,000.00 579,757.60 0.00 0.00 579,757.60 329.83 0.00 760.03 430.20 0.00 0.00 0.00 430.20 0.00 430.20 3135G0WJ8 FNMA Note 0.875% Due 05/21/2018 05/05/2015 05/06/2015 450,000.00 447,472.80 0.00 0.00 447,472.80 1,093.75 0.00 1,421.88 328.13 0.00 0.00 0.00 328.13 0.00 328.13 3135G0YT4 FNMA Note 1.625% Due 11/27/2018 08/31/2015 08/31/2015 440,000.00 446,141.96 0.00 0.00 446,141.96 1,866.94 0.00 2,462.78 595.84 0.00 0.00 0.00 595.84 0.00 595.84 3137EADB2 FHLMC Note 2.375% Due 01/13/2022 09/28/2017 09/29/2017 450,000.00 0.00 458,550.00 0.00 458,550.00 0.00 (2,256.25) 2,315.63 59.38 0.00 0.00 0.00 59.38 0.00 59.38 3137EADK2 FHLMC Note 1.25% Due 08/01/2019 05/05/2015 05/06/2015 450,000.00 446,149.35 0.00 0.00 446,149.35 468.75 0.00 937.50 468.75 0.00 0.00 0.00 468.75 0.00 468.75 3137EADLO FHLMC Note Due 09/29/2017 09/23/2015 09/24/2015 0.00 527,709.00 0.00 527,709.00 0.00 2,216.67 2,625.00 0.00 408.33 0.00 0.00 0.00 408.33 0.00 408.33 3137EADM8 FHLMC Note 1.25% Due 10/02/2019 05/05/2015 05/06/2015 450,000.00 444,822.75 0.00 0.00 444,822.75 2,328.13 0.00 2,796.88 468.75 0.00 0.00 0.00 468.75 0.00 468.75 3137EADN6 FHLMC Note 0.75% Due 01/12/2018 480,954.59 500.21 0.00 07/28/2014 0.00 0.00 0.00 07/29/2014 0.00 806.46 0.00 490,000.00 480,954.59 306.25 306.25 0.00 306.25 3137EADP1 FHLMC Note 0.875% Due 03/07/2018 02/26/2015 02/27/2015 400,000.00 397,552.00 0.00 0.00 397,552.00 1,691.67 1,750.00 233.33 291.66 0.00 0.00 0.00 291.66 0.00 291.66 3137EADR7 FHLMC Note 1.375% Due 05/01/2020 08/24/2016 08/25/2016 455,000.00 460,332.60 0.00 0.00 460,332.60 2,085.42 0.00 2,606.77 521.35 0.00 0.00 0.00 521.35 0.00 521.35 3137EAEF2 FHLMC Note 1.375% Due 04/20/2020 04/27/2017 04/28/2017 460,000.00 457,741.40 0.00 0.00 457,741.40 2,301.60 0.00 2,828.68 527.08 0.00 0.00 0.00 527.08 0.00 527.08 Chandler Asset Management 137 of 585 Execution Time: 10/2/2017 10:41:28 PM City of National City Account #10162 Income Earned 8/31/17 Thru 9/30/17 CUSIP Security Description Trade Date Book Value: Begin Prior Accrued Accr. Of Discount Settle Date Book Value: Acq Inc. Received Amort. Of Premium Units Book Value: Disp Ending Accrued Net Accret/Amort Book Value: End Total Interest Income Earned Unreal G/L Total Income 36962G6K5 General Electric Capital Corp Note 1.6% Due 11/20/2017 11/24/2014 11/28/2014 270,000.00 272,208.60 0.00 0.00 272,208.60 1,212.00 0.00 1,572.00 360.00 0.00 0.00 0.00 360.00 0.00 360.00 43814PAB6 Honda Auto Receivables Owner T 17-3 A2 1.57% Due 01/21/2020 09/25/2017 09/29/2017 150,000.00 0.00 149,986.67 0.00 149,986.67 0.00 0.00 13.08 13.08 0.00 0.00 0.00 13.08 0.00 13.08 459058ER0 Intl. Bank Recon & Development Note 1% Due 10/05/2018 03/30/2016 03/31/2016 450,000.00 449,667.00 0.00 0.00 449,667.00 1,825.00 0.00 2,200.00 375.00 0.00 0.00 0.00 375.00 0.00 375.00 46625HKA7 JP Morgan Chase Callable Note Cont 12/23/2019 2.25% Due 01/23/2020 08/23/2017 08/28/2017 400,000.00 403,336.00 0.00 0.00 403,336.00 950.00 0.00 1,700.00 750.00 0.00 0.00 0.00 750.00 0.00 750.00 47788BAB0 John Deere Owner Trust 2017-B A2A 1.59% Due 04/15/2020 07/11/2017 07/18/2017 170,000.00 169,985.23 0.00 0.00 169,985.23 322.86 427.98 120.13 225.25 0.00 0.00 0.00 225.25 0.00 225.25 594918BF0 Microsoft Note 1.3% Due 11/03/2018 10/29/2015 11/03/2015 130,000.00 129,870.00 0.00 0.00 129,870.00 553.94 0.00 694.78 140.84 0.00 0.00 0.00 140.84 0.00 140.84 594918BG8 Microsoft Callable Note Cont. 10/03/20 2% Due 11/03/2020 07/11/2017 07/14/2017 270,000.00 270,999.00 0.00 0.00 270,999.00 1,770.00 0.00 2,220.00 450.00 0.00 0.00 0.00 450.00 0.00 450.00 65478GAB6 Nissan Auto Receivables Owner 2017-B A2A 1.56% Due 05/15/2020 08/16/2017 08/23/2017 510,000.00 509,979.96 0.00 0.00 509,979.96 176.80 486.20 353.60 663.00 0.00 0.00 0.00 663.00 0.00 663.00 747525AG8 Qualcomm Inc Note 1.4% Due 05/18/2018 06/16/2015 06/19/2015 220,000.00 219,205.80 0.00 0.00 219,205.80 864.11 0.00 1,120.78 256.67 0.00 0.00 0.00 256.67 0.00 256.67 808513AK1 Charles Schwab Corp Callable Note Cont 2/10/2018 1.5% Due 03/10/2018 04/07/2015 04/10/2015 250,000.00 251,547.50 0.00 0.00 251,547.50 1,781.25 1,875.00 218.75 312.50 0.00 0.00 0.00 312.50 0.00 312.50 857477AV5 State Street Bank Note 1.95% Due 05/19/2021 07/12/2017 07/17/2017 400,000.00 396,056.00 0.00 0.00 396,056.00 2,210.00 0.00 2,860.00 650.00 0.00 0.00 0.00 650.00 0.00 650.00 Chandler Asset Management 138 of 585 Execution Time: 10/2/2017 10:41:28 PM City of National City Account #10162 Income Earned 8/31/17 Thru 9/30/17 CUSIP Security Description Trade Date Book Value: Begin Prior Accrued Accr. Of Discount Settle Date Book Value: Acq Inc. Received Amort. Of Premium Units Book Value: Disp Ending Accrued Net Accret/Amort Book Value: End Total Interest Income Earned Unreal G/L Total Income 89237RAB4 Toyota Auto Receivable 2017-C A2A 1.58% Due 07/15/2020 07/25/2017 08/02/2017 500,000.00 499,995.25 0.00 0.00 499,995.25 636.39 943.61 351.11 658.33 0.00 0.00 0.00 658.33 0.00 658.33 91159HHL7 US Bancorp Callable Note 1X 12/29/2020 2.35% Due 01/29/2021 07/19/2017 07/24/2017 400,000.00 404,036.00 0.00 0.00 404,036.00 835.56 0.00 1,618.89 783.33 0.00 0.00 0.00 783.33 0.00 783.33 912828G53 US Treasury Note 1.875% Due 11/30/2021 08/28/2017 08/29/2017 600,000.00 604,994.20 0.00 0.00 604,994.20 2,858.61 0.00 3,780.74 922.13 0.00 0.00 0.00 922.13 0.00 922.13 912828J50 US Treasury Note 1.375% Due 02/29/2020 07/25/2017 07/26/2017 600,000.00 598,408.26 0.00 0.00 598,408.26 22.79 0.00 706.49 683.70 0.00 0.00 0.00 683.70 0.00 683.70 912828L32 US Treasury Note 1.375% Due 08/31/2020 600,184.82 22.79 0.00 Various 0.00 0.00 0.00 Various 0.00 706.50 0.00 600,000.00 600,184.82 683.71 683.71 0.00 683.71 912828L40 US Treasury Note 1% Due 09/15/2018 10/29/2015 11/02/2015 450,000.00 449,667.52 0.00 0.00 449,667.52 2,078.80 2,250.00 198.90 370.10 0.00 0.00 0.00 370.10 0.00 370.10 912828M98 US Treasury Note 1.625% Due 11/30/2020 11/29/2016 11/30/2016 570,000.00 568,331.99 0.00 0.00 568,331.99 2,353.59 0.00 3,112.81 759.22 0.00 0.00 0.00 759.22 0.00 759.22 912828Q37 US Treasury Note 1.25% Due 03/31/2021 04/27/2017 04/28/2017 375,000.00 369,024.69 0.00 0.00 369,024.69 1,972.34 2,343.75 12.88 384.29 0.00 0.00 0.00 384.29 0.00 384.29 912828Q78 US Treasury Note 1.375% Due 04/30/2021 05/25/2017 05/31/2017 500,000.00 494,650.11 0.00 0.00 494,650.11 2,329.23 0.00 2,892.76 563.53 0.00 0.00 0.00 563.53 0.00 563.53 912828S43 US Treasury Note 0.75% Due 07/15/2019 08/01/2016 08/02/2016 435,000.00 434,780.56 0.00 0.00 434,780.56 425.54 0.00 691.51 265.97 0.00 0.00 0.00 265.97 0.00 265.97 912828SD3 US Treasury Note 1.25% Due 01/31/2019 04/29/2015 04/30/2015 400,000.00 401,095.09 0.00 0.00 401,095.09 434.78 0.00 842.39 407.61 0.00 0.00 0.00 407.61 0.00 407.61 Chandler Asset Management 139 of 585 Execution Time: 10/2/2017 10:41:28 PM City of National City Account #10162 Income Earned 8/31/17 Thru 9/30/17 CUSIP Security Description Trade Date Book Value: Begin Prior Accrued Accr. Of Discount Settle Date Book Value: Acq Inc. Received Amort. Of Premium Units Book Value: Disp Ending Accrued Net Accret/Amort Book Value: End Total Interest Income Earned Unreal G/L Total Income 912828ST8 US Treasury Note 1.25% Due 04/30/2019 Various Various 450,000.00 449,676.31 0.00 0.00 449,676.31 1,895.38 0.00 2,353.94 458.56 0.00 0.00 0.00 458.56 0.00 458.56 912828TH3 US Treasury Note 0.875% Due 07/31/2019 03/30/2016 03/31/2016 400,000.00 398,204.46 0.00 0.00 398,204.46 304.35 0.00 589.67 285.32 0.00 0.00 0.00 285.32 0.00 285.32 912828TW0 US Treasury Note 0.75% Due 10/31/2017 02/16/2016 02/17/2016 500,000.00 500,138.39 0.00 0.00 500,138.39 1,263.59 0.00 1,569.29 305.70 0.00 0.00 0.00 305.70 0.00 305.70 912828UB4 US Treasury Note 1% Due 11/30/2019 10/29/2015 11/02/2015 450,000.00 443,181.20 0.00 0.00 443,181.20 1,143.44 0.00 1,512.30 368.86 0.00 0.00 0.00 368.86 0.00 368.86 912828UL2 US Treasury Note 1.375% Due 01/31/2020 12/08/2016 12/09/2016 490,000.00 489,312.58 0.00 0.00 489,312.58 585.87 0.00 1,135.12 549.25 0.00 0.00 0.00 549.25 0.00 549.25 912828UU2 US Treasury Note 0.75% Due 03/31/2018 510,637.68 1,640.98 0.00 09/03/2014 0.00 1,950.00 0.00 09/04/2014 0.00 10.71 0.00 520,000.00 510,637.68 319.73 319.73 0.00 319.73 912828UV0 US Treasury Note 1.125% Due 03/31/2020 596,517.64 2,840.16 0.00 Various 0.00 3,375.00 0.00 Various 0.00 18.54 0.00 600,000.00 596,517.64 553.38 553.38 0.00 553.38 912828UZ1 US Treasury Note 0.625% Due 04/30/2018 411,180.30 873.98 0.00 Various 0.00 0.00 0.00 Various 0.00 1,085.43 0.00 415,000.00 411,180.30 211.45 211.45 0.00 211.45 912828VK3 US Treasury Note 1.375% Due 06/30/2018 02/26/2015 02/27/2015 400,000.00 402,954.47 0.00 0.00 402,954.47 941.58 0.00 1,389.95 448.37 0.00 0.00 0.00 448.37 0.00 448.37 912828XK1 US Treasury Note 0.875% Due 07/15/2018 07/31/2015 07/31/2015 450,000.00 448,560.10 0.00 0.00 448,560.10 513.59 0.00 834.58 320.99 0.00 0.00 0.00 320.99 0.00 320.99 94974BFG0 Wells Fargo Corp Note 1.5% Due 01/16/2018 11/24/2014 11/28/2014 270,000.00 269,365.50 0.00 0.00 269,365.50 506.25 0.00 843.75 337.50 0.00 0.00 0.00 337.50 0.00 337.50 Chandler Asset Management 140 of 585 Execution Time: 10/2/2017 10:41:28 PM City of National City Account #10162 Income Earned 8/31/17 Thru 9/30/17 CUSIP Security Description Trade Date Book Value: Begin Prior Accrued Accr. Of Discount Settle Date Book Value: Acq Inc. Received Amort. Of Premium Units Book Value: Disp Ending Accrued Net Accret/Amort Book Value: End Total Interest Income Earned Unreal G/L Total Income TOTAL Fixed Income 27,465,000.00 27,335,223.92 608,536.67 527,709.00 27,416,051.59 88,436.85 30,914.04 87,972.48 30,449.67 0.00 0.00 0.00 30,449.67 0.00 30,449.67 Cash & Equivalent 06417GXH6 Bank of Nova Scotia Yankee CD 1.57% Due 08/09/2018 08/08/2017 08/09/2017 520,000.00 520,000.00 0.00 0.00 520,000.00 521.59 0.00 1,201.92 680.33 0.00 0.00 0.00 680.33 0.00 680.33 06538BY80 Bank of Tokyo Mitsubishi NY Discount CP 1.33% Due 11/08/2017 07/07/2017 07/07/2017 595,000.00 592,274.24 0.00 0.00 592,274.24 1,230.99 0.00 1,890.45 659.46 0.00 0.00 0.00 659.46 0.00 659.46 36164KAG6 GE Capital Treasury LLC Discount CP 1.3% Due 01/16/2018 07/20/2017 07/20/2017 600,000.00 596,100.00 0.00 0.00 596,100.00 931.67 0.00 1,581.67 650.00 0.00 0.00 0.00 650.00 0.00 650.00 60934N807 Federated Investors Govt Oblig Fund Inst. 71,754.10 0.00 0.00 Various (52,074.37) 548.26 0.00 Various 2,154.82 0.00 0.00 17,524.91 17,524.91 548.26 548.26 0.00 548.26 89233GZB5 Toyota Motor Credit Discount CP 1.26% Due 12/11/2017 07/12/2017 07/12/2017 600,000.00 596,808.00 0.00 0.00 596,808.00 1,071.00 0.00 1,701.00 630.00 0.00 0.00 0.00 630.00 0.00 630.00 TOTAL Cash & Equivalent 2,332,524.91 2,376,936.34 (52,074.37) 2,154.82 2,322,707.15 3,755.25 548.26 6,375.04 3,168.05 0.00 0.00 0.00 3,168.05 0.00 3,168.05 29,712,160.26 556,462.30 529,863.82 TOTAL PORTFOLIO 29,797,524.91 29,738,758.74 92,192.10 31,462.30 94,347.52 33,617.72 0.00 0.00 0.00 33,617.72 0.00 33,617.72 Chandler Asset Management 141 of 585 Execution Time: 10/2/2017 10:41:28 PM i COUNTY OF"SAN DIE50I ESTIGIENT POOL TREASURY INiESTMENT RESULTS ;• I�. • Diu;.. 4,.r :'l p i iuuw . SEPT 2017 County of San Diego Treasurer -Tax Collector 11600 Pacific Hwy, San Diego, CA 92101 www.sdttc.com 142 of 585 PARTICIPANT FMV FMV FMV %of 07/31/17 08/31/17 09/30/17 Total COUNTY $ 737,847 COUNTY - SPECIAL TRUST FUNDS 2,120,858 NON -COUNTY INVESTMENT FUNDS 175,223 SCHOOLS - (K THRU 12) 3,609,906 COMMUNITY COLLEGES San Diego Grossmont Mira Costa Palomar Southwestern Total Community Colleges SDCERA SANCAL SANDAG CITIES Chula Vista Coronado Del Mar Encinitas National City INDEPENDENT AGENCIES Alpine FPD Bonita Sunnyside FPD Borrego Springs FPD Canbrake County Water District Deer Springs FPD Fallbrook Public UTL Grossmont Healthcare District Public Agency Self Insurance System Julian-Cuyamaca FPD Lake Cuyamaca Rec & Park Lakeside Fire Leucadia Water District $ 746,538 2,050,987 161,182 3,236,661 $ 772,963 2,089,388 171,114 3,021,728 10.14% 27.40% 2.24% 39.62% 323,898 253,097 249,186 3.27% 103,757 79,830 80,261 1.04% 42,112 34,845 121,225 1.59% 393,115 361,391 343,565 4.50% 161,863 136,537 128,051 1.68 1,024,745 865,700 922,288 12.08% 5,466 598 596 8,036 8,046 8,012 32,969 34,024 34,695 149,368 131,633 131,080 0 0 19,841 3,083 2,590 2,579 2 2 2 8,101 8,112 8,078 1,226 983 708 5,081 5,130 4,677 1,251 1,269 1,171 51 51 51 9,578 9,445 9,599 15 15 15 1,015 1,017 1,012 3,386 3,391 3,376 62 65 66 162 157 158 5,919 5,211 5,028 9,555 9,568 9,528 PARTICIPANT CASH BALANCES San Diego Pooled Money Fund As of September 30, 2017 ($000) PARTICI PANT FMV FMV FMV %of 07/31/17 08/31/17 09/30/17 Total Lower Sweetwater FPD Metropolitan Transit System Mission Resource Conservation District North County Cemetery District North County Cemetry Perpetual North County Cemetery North County Dispatch North County Fire Otay Water District Investment Pine Valley FPD Pomerado Cemetery District Ramona Cemetery District Ramona Cemetery Perpetual Rancho Santa Fe FPD Rincon del Diablo Municipal Water District San Diego Housing Commission San Diego Geographic Information Source San Diego Law Library San Diego Local Agency Formation Comn San Diego Regional Training Center San Dieguito River San Marcos FPD San Miguel FPD Santa Fe Irrigation District Serra Cooperative Library System SDC Regional Airport Authority Upper San Luis Rey Reservoir Vallecitos Water District Valley Center FPD Valley Cntr Cemetery Valley Ctr Cem Perpetual Valley Ctr Water District Vista FPD 567 6,596 317 1,401 1,544 997 3,231 2,301 4,107 501 1,792 545 383 13,257 3,045 17,201 413 3,030 1,440 431 1,589 1 8,036 4,209 217 153,754 42 5,169 3,399 88 257 17,195 2,381 470 6,299 318 1,406 1,556 1,051 3,918 1,561 4,113 331 1,777 518 383 12,313 3,049 17,225 621 3,049 1,896 305 1,530 1 8,684 4,215 230 295,054 42 5,177 3,060 88 257 19,016 2,384 466 8,183 317 1,428 1,564 985 3,590 1,580 4,096 331 1,707 493 382 11,428 3,036 20,625 561 3,090 1,670 230 1,448 1 8,536 4,197 229 298,949 42 5,155 2,825 88 256 18,851 2,374 Total Independent Agencies 503,760 623,203 648,985 8.52% Pooled Money Fund Total $ 8,172,339 $ 7,684,271 $ 7,626,466 100.00% 5 143 of 585 Please see the balances below for National City: National City Conversion of Oracle Cash Balance to COSO Pool Market Price Month Ended September 30, 2017 Current Month 9/30/2017 COSDPool Market Price 99.206% Fund Description 44077 NATIDNALCITY INVETMENT FUND Total for Nat lanai City Oracle Cash Balance 8;142,545 8,142,545 Prior Month 8/31/2017 99.520% Pool YTM:1, 365 Pn or Quarter 6/30/2017 99.572% PriorYear 9/30/2016 99. Market Value Market Val ue Market Val ue Market Value 8,077,908 8,111,605 8,092,254 5,084,411 8,077,908 8,111,605 3,092,254 5,084,411 Let me know if you need anything else. Thank you. Steven Wong Associate Accountant San Diego County Treasurer -Tax Collector's Office Phone: 619.685.2640 I Fax: 619.446.8222 I www.sdttc.com SIGN UP for 111111I1C e-NOTIFICATIONS Click here to receive Property Tax Bill Reminders 144 of 585 Please see the balances below for National City: National City Po&IYTM: 1.34 Conversion of Oracle Cash Balance to COSD Pool Market Price Month Ended August 31, 2017 Current Month Prior Month Prior Quarter PriorYear COSD Pool Market Price 8/31/2017 7/31/2017 5/31/2017 8/31/2016 99.620% 99.145% 99.5203 99.880% Fund Description Oracle Cash Balance Market Value Market Value Market Val ue Market Value 44077 NATIONAL CITY INVESTMENT FUND 8,142,546 8,111,605 8,071,900 5,102,462 5,083,942 Total for National City 8,142,546 8,111,605 8,071,900 5,102,462 5,083,942 Let me know if you need anything else. Thank you. Steven Wong Associate Accountant San Diego County Treasurer -Tax Collector's Office Phone: 619.685.2640 I Fax: 619.446.8222 I www.sdttc.com MEW- 11.11.11.1.1111111!"- SIGN UP for e-NOTIFICATIONS W Click here to receive Property Tax Bill Reminders 145 of 585 Please see the balances below for National City: National City PoolYTM: 1.318 Conversion of Oracle Cash Balance to COSD Pool Market Price Month Ended July 31,2017 Current Month Prior Month Prior quarter Prior Year 7/31/2017 6/30/2017 4f30f2017 7/31/2016 COSD Pool Market Price 99.145% 99.570% 99.227% 99.996% Fund Description Oracle Cash Balance Market Value Market Value Market Value Market Value 44077 NATIONAL CITYINVESTMENT FUND 8,141,472 8,071,900 8,092,126 5,085,547 5,089,862 Total for National City 8,141,472 8,071,900 8,092,126 5,085,547 5,089,862 Let me know if you need anything else. Thank you. Steven Wong Associate Accountant San Diego County Treasurer -Tax Collector's Office Phone: 619.685.2640 I Fax: 619.446.8222 I www.sdttc.com SIGN UP for e-NOTIFICATIONS 1 Click here to receive Property Tax Bill Reminders 146 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 147 The following page(s) contain the backup material for Agenda Item: Warrant Register #19 for the period of 11/01/17 through 11/07/17 in the amount of $2,772,515.75. (Finance) 147 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO.: ITEM TITLE: Warrant Register #19 for the period of 11/01/17 through 11/07/17 in the amount of $2,772,515.75. (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 11/01/17 through 11/07/17. Consistent with Department of Finance, listed below are all payments above $50,000. Vendor Check/Wire Amount SDG&E 331589 72,850.86 EsGil Corporation 331622 111,490.48 Harris and Assoc 331623 58,341.01 Public Emp Retirement 11012017 231,555.46 Explanation Facilities Division Gas & Electric Utilities Plan Checks / Building Paradise Valley Creek W. Service Period 10/10/17 — 10/23/17 FINANCIAL STATEMENT: ACCOUNT NO. Warrant total $2,772,515.75. APPROVED: `1'v/<t XG,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 $2,772,515.75 BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: Warrant Register #19 148 of 585 1/3 CALIFORNIA+�__ NATIONAL CI?? r T.CORPORAT8D . WARRANT REGISTER #19 11/7/2017 PAYEE DESCRIPTION CHK NO DATE AMOUNT ACEDO, I RETIREE HEALTH BENEFIT / NOVEMBER 2017 331506 11/7/17 160.00 ALDEMCO FOOD / NUTRITION CENTER 331507 11/7/17 1,496.66 ALL FRESH PRODUCTS FOOD / NUTRITION CENTER 331508 11/7/17 788.26 ANDERSON, E RETIREE HEALTH BENEFIT / NOVEMBER 2017 331509 11/7/17 110.00 ASSI SECURITY INC CITY WIDE DOOR SECURITY SERVICES 331510 11/7/17 915.00 BEARD, P RETIREE HEALTH BENEFIT / NOVEMBER 2017 331511 11/7/17 70.00 BECK, L RETIREE HEALTH BENEFIT / NOVEMBER 2017 331512 11/7/17 140.00 BISHOP, R RETIREE HEALTH BENEFIT / NOVEMBER 2017 331513 11/7/17 110.00 BOEGLER, C RETIREE HEALTH BENEFIT / NOVEMBER 2017 331514 11/7/17 260.00 BROADWAY AUTO ELECTRIC MOP 72447 AUTO SUPPLIES / PW 331515 11/7/17 857.25 BULL, P RETIREE HEALTH BENEFIT / NOVEMBER 2017 331516 11/7/17 580.00 CALIFORNIA COMMERCIAL SECURITY ELECTRONIC DOOR LOCK INSTALLATION SERVICES 331517 11/7/17 3,919.72 CALIFORNIA ELECTRIC SUPPLY MOP 45698 ELECTRIC SUPPLIES /PW 331518 11/7/17 176.17 CARRILLO, R RETIREE HEALTH BENEFIT / NOVEMBER 2017 331519 11/7/17 290.00 CLF WAREHOUSE INC MOP 72447 AUTO SUPPLIES / PW 331520 11/7/17 146.94 COLE, L RETIREE HEALTH BENEFIT / NOVEMBER 2017 331521 11/7/17 165.00 COLLINSON, C RETIREE HEALTH BENEFIT / NOVEMBER 2017 331522 11/7/17 420.00 CONDON, D RETIREE HEALTH BENEFIT / NOVEMBER 2017 331523 11/7/17 280.00 CORPUZ, T RETIREE HEALTH BENEFIT / NOVEMBER 2017 331524 11/7/17 140.00 CULLIGAN WATER SOFTENER / NUTRITION 331525 11/7/17 13.00 DANESHFAR, Z RETIREE HEALTH BENEFIT / NOV 2017 331526 11/7/17 250.00 DANIELS TIRE SERVICE MOP 76986 AUTO SUPPLIES / PW 331527 11/7/17 826.41 DATA TICKET INC DATA TICKET PARKING ENFORCEMENT / NSD 331528 11/7/17 2,344.07 DESROCHERS, P RETIREE HEALTH BENEFIT! NOVEMBER 2017 331529 11/7/17 110.00 DI CERCHIO, A RETIREE HEALTH BENEFIT / NOVEMBER 2017 331530 11/7/17 70.00 DIAZ, M RETIREE HEALTH BENEFIT / NOVEMBER 2017 331531 11/7/17 680.00 DILLARD, S RETIREE HEALTH BENEFIT / NOVEMBER 2017 331532 11/7/17 480.00 DREDGE, J RETIREE HEALTH BENEFIT / NOVEMBER 2017 331533 11/7/17 250.00 EISER III, G RETIREE HEALTH BENEFIT / NOVEMBER 2017 331534 11/7/17 250.00 FABINSKI, D RETIREE HEALTH BENEFIT / NOVEMBER 2017 331535 11/7/17 220.00 FEDEX FEDEX SHIPPING TESTING MATERIALS/HR 331536 11/7/17 18.73 FIFIELD, K RETIREE HEALTH BENEFIT / NOVEMBER 2017 331537 11/7/17 540.00 FRANK SUBARU REIMB / T&A#90138 2829 N.C.B. 331538 11/7/17 59.71 GELSKEY, K RETIREE HEALTH BENEFIT / NOVEMBER 2017 331539 11/7/17 115.00 GIBBS JR, R RETIREE HEALTH BENEFIT / NOVEMBER 2017 331540 11/7/17 120.00 GISH, J RETIREE HEALTH BENEFIT / NOVEMBER 2017 331541 11/7/17 290.00 GLOBAL POWER GROUP INC GENERATOR REPAIR / PW 331542 11/7/17 4,876.75 GONZALES, M RETIREE HEALTH BENEFIT / NOVEMBER 2017 331543 11/7/17 480.00 GONZALEZ, JAIME REIMB / T&A#90258 1205 ROSELAWN ST. 331544 11/7/17 523.75 GRAINGER MOP 65179 AUTO SUPPLIES / PW 331545 11/7/17 57.03 HAMMER CONSTRUCTION COMPANY REIMB / T&A#90217 221 W. 33RD ST. 331546 11/7/17 5,329.24 HANSON, E RETIREE HEALTH BENEFIT / NOVEMBER 2017 331547 11/7/17 135.00 HARLAN, M RETIREE HEALTH BENEFIT! NOVEMBER 2017 331548 11/7/17 500.00 HAUG, S RETIREE HEALTH BENEFIT / NOVEMBER 2017 331549 11/7/17 120.00 HERNANDEZ, R RETIREE HEALTH BENEFIT / NOVEMBER 2017 331550 11/7/17 400.00 HODGES, B RETIREE HEALTH BENEFIT / NOVEMBER 2017 331551 11/7/17 200.00 HONDO, E RETIREE HEALTH BENEFIT / NOVEMBER 2017 331552 11/7/17 110.00 IBARRA, J RETIREE HEALTH BENEFIT / NOVEMBER 2017 331553 11/7/17 780.00 JAMES, R RETIREE HEALTE EMBER 2017 331554 11/7/17 140.00 149 of 585 JUNIEL, R RETIREE HEALTF EMBER 2017 331555 11/7/17 50.00 CALIFORNIA F__ 2/3 PAYEE KIMBLE, R LANDA, A LEFORTS SMALL ENGINE REPAIR LIMFUECO, M MATIENZO, M MC CABE, T MEDINA, R MINER, D MYERS, B NATIONAL CITY CAR WASH NATIONAL CITY ELECTRIC NOTEWARE, D OLIVARES, G O'REILLY AUTO PARTS ORKIN PADRE JANITORIAL SUPPLIES PARTS AUTHORITY METRO LLC PAUU JR, P PEASE JR, D PETERS, S PHILIP E MOSSY POST, R POWERSTRIDE BATTERY CO INC PRO BUILD PRUDENTIAL OVERALL SUPPLY RAY, S ROARK, L RODRIGUEZ, JOSE LUIS RUIZ, J SAN DIEGO FRICTION PRODUCTS SAN DIEGO GAS & ELECTRIC SANCHEZ, L SDG&E SEAPORT MEAT COMPANY SERVATIUS, J SHORT, C SITEONE LANDSCAPE SUPPLY LLC SMITH, J SOUTH BAY MOTORSPORTS SOUTH BAY WINDOW & GLASS CO SOUTHWEST SIGNAL SERVICE STAPLES BUSINESS ADVANTAGE STARDUST INN STEVENSON, S STEWART, W STRASEN, W SUPERIOR READY MIX SWEETWATER AUTHORITY SYSCO SAN DIEGO INC T MAN TRAFFIC SUPPLY NATIONAL Cilry ?ATCORPQRAT8D . WARRANT REGISTER #19 11/7/2017 DESCRIPTION RETIREE HEALTH BENEFIT / NOVEMBER 2017 RETIREE HEALTH BENEFIT / NOVEMBER 2017 MOP 80702 AUTO SUPPLIES / PW RETIREE HEALTH BENEFIT / NOVEMBER 2017 RETIREE HEALTH BENEFIT / NOVEMBER 2017 RETIREE HEALTH BENEFIT / NOVEMBER 2017 RETIREE HEALTH BENEFIT / NOVEMBER 2017 RETIREE HEALTH BENEFIT / NOVEMBER 2017 RETIREE HEALTH BENEFIT / NOVEMBER 2017 CAR WASH SERVICES FOR CITY FLEET FY 2018 CITY WIDE ELECTRICAL MAINTENANCE / PW RETIREE HEALTH BENEFIT / NOVEMBER 2017 RETIREE HEALTH BENEFIT / NOVEMBER 2017 MOP 75897 AUTO SUPPLIES /PW PEST AND RODENT CONTROL SERVICES FOR FY JANITORIAL SUPPLIES / NUTRITION MOP 75943 AUTO PARTS / PW RETIREE HEALTH BENEFIT / NOVEMBER 2017 RETIREE HEALTH BENEFIT / NOVEMBER 2017 RETIREE HEALTH BENEFIT / NOVEMBER 2017 REIMB / T&A#90129 2700 N.C.B. RETIREE HEALTH BENEFIT / NOVEMBER 2017 MOP 67839 AUTO PARTS / PW MOP 45707 GENERAL SUPPLIES / PW MOP 45742. LAUNDRY SERVICES RETIREE HEALTH BENEFIT / NOVEMBER 2017 RETIREE HEALTH BENEFIT / NOVEMBER 2017 REIMB / T&A#90117 135 S. HARBISON AVE. RETIREE HEALTH BENEFIT / NOVEMBER 2017 MOP#80333 AUTO SUPPLIES /PW GAS & ELECTRIC UTILITIES / NUTRITION RETIREE HEALTH BENEFIT / NOVEMBER 2017 FACILITIES DIVISION GAS & ELECTRIC UTILITIES FOOD / NUTRITION CENTER RETIREE HEALTH BENEFIT / NOVEMBER 2017 RETIREE HEALTH BENEFIT / NOVEMBER 2017 MOP 69277 GENERAL SUPPLIES / PW RETIREE HEALTH BENEFIT / NOVEMBER 2017 R&M CITY VEHICLES / PW CITY WIDE AUTOMATIC WINDOW REPAIRS / PW INTERSECTION LIGHTING MAINTENANCE / SEPT MOP# 45704. OFFICE SUPPLIES / NSD RELOCATION ASSISTANCE / NSD TRAINING/CMO - S. STEVENSON RETIREE HEALTH BENEFIT / NOVEMBER 2017 RETIREE HEALTH BENEFIT FOR NOV 2017 CONCRETE DELIVERY SERVICES / PW FACILITIES DIVISION WATER UTILITIES FOOD / NUTRITIC MOP#76666 GEN 150 of 585 /PW CHK NO DATE AMOUNT 331556 11/7/17 300.00 331557 11/7/17 155.00 331558 11/7/17 317.83 331559 11/7/17 160.00 331560 11/7/17 100.00 331561 11/7/17 280.00 331562 11/7/17 105.00 331563 11/7/17 580.00 331564 11/7/17 140.00 331565 11/7/17 475.00 331566 11/7/17 375.00 331567 11/7/17 120.00 331568 11/7/17 280.00 331569 11/7/17 175.64 331570 11/7/17 882.00 331571 11/7/17 180.32 331572 11/7/17 333.96 331573 11/7/17 340.00 331574 11/7/17 140.00 331575 11/7/17 290.00 331576 11/7/17 5,425.00 331577 11/7/17 280.00 331578 11/7/17 1,028.43 331580 11/7/17 4,149.62 331581 11/7/17 1,583.06 331582 11/7/17 190.00 331583 11/7/17 135.00 331584 11/7/17 264.62 331585 11/7/17 310.00 331586 11/7/17 290.33 331587 11/7/17 2,229.51 331588 11/7/17 330.00 331589 11/7/17 72,850.86 331590 11/7/17 1,232.86 331591 11/7/17 340.00 331592 11/7/17 300.00 331593 11/7/17 744.54 331594 11/7/17 320.00 331595 11/7/17 644.45 331596 11/7/17 340.51 331597 11/7/17 11,271.59 331598 11/7/17 72.22 331599 11/7/17 117.49 331600 11/7/17 880.34 331601 11/7/17 200.00 331602 11/7/17 135.00 331603 11/7/17 462.91 331604 11/7/17 28,606.46 331605 11/7/17 4,020.69 331606 11/7/17 488.02 3/3 PAYEE THE HOME DEPOT CREDIT SERVICES THE LIGHTHOUSE INC THE SHERWIN WILLIAMS CO TIPTON, B TOPECO PRODUCTS U S HEALTHWORKS UNITED ROTARY BRUSH CORP VERRY, L VILLAGOMEZ, J WAXIE SANITARY SUPPLY WESTFLEX INDUSTRIAL WHITE, J BORDER ANGELS CORNERSTONE CHURCH OF SD ESGIL CORPORATION HARRIS & ASSOCIATES INC HERENCIA HISPANA MCCARTHY, TERESA OLSON, J PRUDENTIAL OVERALL SUPPLY SMART SOURCE OF CALIFORNIA LLC WATSON, S WIRED PAYMENTS PUBLIC EMP RETIREMENT SYSTEM SECTION 8 HAPS PAYROLL Pay period Start Date 23 10/24/2017 CALIFORNIA NATIoNAL ''_ 1' j ?NCORPQRAT8D WARRANT REGISTER #19 11/7/2017 DESCRIPTION GENERAL SUPPLIES FOR BUILDINGS / PW MOP#45726 AUTO SUPPLIES /PW MOP 77816 PAINT SUPPLIES /PW RETIREE HEALTH BENEFIT / NOVEMBER 2017 MOP#63849 AUTO SUPPLIES /PW MEDICAL SERVICES STREET SWEEPER REPAIRS / PW RETIREE HEALTH BENEFIT / NOVEMBER 2017 RETIREE HEALTH BENEFIT / NOVEMBER 2017 MISCELLANEOUS JANITORIAL SUPPLIES / PW MOP#63850 AUTO SUPPLIES / PW RETIREE HEALTH BENEFIT / NOVEMBER 2017 ANNIVERSARY DINNER / MAYOR MORRISON USE OF FACILITIES / STATE OF THE CITY ADDRESS PLAN CHECKS / BUILDING PARADISE VALLEY CREEK W. DANCE PERFORMERS / STATE OF THE CITY FLOWER ARRANGEMENTS / STATE OF THE CITY REIMBURSEMENT CACEO / NSD MOP45742. LAUNDRY SERVICES / PW MOP 63845. COVER ART / FINANCE CACEO SEMINAR REIMB. / NSD SERVICE PERIOD 10/10/17 - 10/23/17 Start Date End Date 11 /1 /2017 11/7/2017 End Date Check Date 11/6/2017 11/15/2017 GRAND TOTAL CHK NO DATE AMOUNT 331607 11/7/17 384.21 331608 11/7/17 27.58 331609 11/7/17 161.91 331610 11/7/17 250.00 331611 11/7/17 16.83 331612 11/7/17 5,898.00 331613 11/7/17 2,731.99 331614 11/7/17 280.00 331615 11/7/17 480.00 331616 11/7/17 2,391.15 331617 11/7/17 154.93 331618 11/7/17 230.00 331619 11/7/17 100.00 331620 11/7/17 3,000.00 331622 11/7/17 111,490.48 331623 11/7/17 58,341.01 331624 11/7/17 300.00 331625 11/7/17 450.00 331626 11/7/17 87.67 331627 11/7/17 396.59 331628 11/7/17 56.55 331629 11/7/17 94.82 A/P Total 363,660.67 11012017 11/1/17 231,555.46 870,248.26 1,307,051.36 $ 2,772,515.75 151 of 585 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 19th OF DECEMBER 2017. AYES NAYS ABSENT 152 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 153 The following page(s) contain the backup material for Agenda Item: Warrant Register #20 for the period of 11/08/17 through 11/14/17 in the amount of $1,113,581.15. (Finance) 153 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO.: ITEM TITLE: Warrant Register #20 for the period of 11/08/17 through 11/14/17 in the amount of $1,113,581.15. (Finance) PREPARED BY:Karla Apalategui, Accounting Assistant PHONE: 619`336-4572 DEPARTMENT: Financen11479., APPROVED BY: EXPLANATION: Per Government Section Code 37208, attached are the warrants issued for the period of 11/08/17 through 11/14/17. Consistent with Department of Finance, listed below are all payments above $50,000. Vendor A Good Sign & Graphic Co Accelerated Modular Tri Group Construction Adminsure Inc Springboard CDFI Check/Wire 331630 331631 331701 151281 151305 Amount 50,753.75 77,416.72 263,993.46 104,275.20 70,000.00 Explanation Wayfinding Signage Project Fire Station #33 Project 18Th St. Ped. & Bicycle Enh. Project W/C Acct Replenishment Oct 2017 FTHB Program Loan for 1213 E Ave FINANCIAL STATEMENT: ACCOUNT NO. Warrant total $1,113,581.15. APPROVED: 11 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 $1,113,581.15 BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: Warrant Register #20 154 of 585 // CALIFORNIAF__ 1/2 PAYEE A GOOD SIGN & GRAPHICS COMPANY ACCELERATED MODULAR ADORAMA CAMERA INC AETNA RESOURCES FOR LIVING ALDEMCO ALL FRESH PRODUCTS ALPHA PROJECT FOR THE HOMELESS ALTA LANGUAGE SERVICES INC AMEDEE, W AT&T ATKINS NORTH AMERICA INC BRAD C WOODALL MAI BRENCICK, MARK BSE ENGINEERING INC CALIFORNIA TRAINING INSTITUTE CARAVANTES, S CITY OF IMPERIAL BEACH CLAIMS MANAGEMENT ASSOCIATES COHERO COLSON, K COX COMMUNICATIONS CYNTHIA TITGEN CONSULTING INC DATEL SYSTEMS INCORPORATED DAY WIRELESS SYSTEMS (20) DJ DEV D-MAX ENGINEERING ENTERPRISE FLEET MANAGEMENT FASTSIGNS FIRE ETC GAUT, A GEOSYNTEC CONSULTANTS INC GOVCONNECTION INC GRAINGER HARRIS & ASSOCIATES INC HUERTA JR, R HUTCHINSON, C INNOVATIVE CONSTRUCTION KASEYA KIMLEY HORN AND ASSOC INC KNOX SERVICES KONICA MINOLTA LANE, V LASER SAVER INC LIFE ASSIST INC LOPEZ, TERESA YOLANDA LRI HISTORY LLC MORA, S MTS PACIFIC TELEMANAGEMENT SERVICE PORTILLO CONCRETE INC -M'I.O�l.�J -.. L C ' r117. jaa ? CORPQRAT8L WARRANT REGISTER #20 11/14/2017 DESCRIPTION WAYFINDING SIGNAGE PROJECT FIRE STATION #33 PROJECT CANON EOS 80DW/18-135 VIDEO CRTR KIT A / POLICE EMPLOYEE ASSISTANCE PROGRAM NOVEMBER FOOD / NUTRITION CENTER FOOD / NUTRITION CENTER ALPHA PROJECT HOMELESS / AUGUST 2017 PROFESSIONAL SERVICES TRAVEL REIMBURSEMENT, FIRE AT&T SBC PHONE SERVICE FOR OCTOBER 2017 N.C. FY17 TAX ROLL SERVICE APPRAISAL SERVICES / HOUSING FEE REFUND, BUILDING POLICE STATION UPGRADES TRAINING TUITION HUMAN FACTORS THREAT MGNT EMPLOYEE REIMBURSEMENT SD BAY WATERSHED FY17/18 PROFESSIONAL SERVICES COHERO SUPPORT (09/01/17 - 11/30/17) TRAINING ADV LODGING DISPATCHER PUBLIC SVCS COX DATA SERVICES NOVEMBER 2017 RISK MANAGEMENT SERVICES BARRACUDA EMAIL SECURITY AND COMPLIANCE COMMS EQUIP SERVICE / FIRE DJ AND MC FOR KABOOM! / CSD NC STORM WATER SERV. FY17-18 ENTERPRISE FLEET LEASE AND MAINTENANCE FIRE DEPT SIGN FORRESTRY TOOLS / FIRE MEDICAL SERVICES ON -CALL PROJECT SUPPORT SERVICES / ENG HP 402 DNE LASERJET PRINTER / MIS MOP 65179 SUPPLIES FOR FIRE DEPT PARADISE VALLEY CREEK PROJECT MEDICAL SERVICES MILEAGE TRAVEL REIMBURSEMENT PARADISE CREEK REST. PROJECT KASEYA ANNUAL RENEWAL SWEETWATER RIVER BIKEWAY GOVERNMENTAL PURPOSES KONICA MINOLTA COPIER EQUIPMENT LEASE TRAINING ADV SUB AND LODGING DISPATCHER MOP 45725 SUPPLIES / BLDG CHARGES CPR TRAINING MASKS / FIRE TRANSLATION/SEWER NOTICE PROFESSIONAL SERVICES EMPLOYEE REIMBURSEMENT MTS TROLLEY FLAGGER SERVICE FY 2018 PHONE SERVICE SEWER LINE REF 155 of 585 PROJECT CHK NO DATE AMOUNT 331630 11/14/17 50,753.75 331631 11/14/17 77,416.72 331632 11/14/17 1,898.00 331633 11/14/17 816.24 331634 11/14/17 1,856.05 331635 11/14/17 432.41 331636 11/14/17 7,140.00 331637 11/14/17 60.00 331638 11/14/17 34.87 331639 11/14/17 352.85 331640 11/14/17 8,024.00 331641 11/14/17 4,400.00 331642 11/14/17 118.00 331643 11/14/17 1,183.75 331644 11/14/17 326.00 331645 11/14/17 30.00 331646 11/14/17 15,393.00 331647 11/14/17 6,390.00 331648 11/14/17 26,780.00 331649 11/14/17 2,258.25 331650 11/14/17 577.82 331651 11/14/17 3,045.00 331652 11/14/17 11,475.00 331653 11/14/17 665.75 331655 11/14/17 200.00 331656 11/14/17 14,535.39 331657 11/14/17 14,485.57 331658 11/14/17 182.21 331659 11/14/17 789.68 331660 11/14/17 115.00 331661 11/14/17 3,751.60 331662 11/14/17 1,827.21 331663 11/14/17 570.08 331664 11/14/17 12,962.50 331665 11/14/17 43.00 331666 11/14/17 44.35 331667 11/14/17 514.50 331668 11/14/17 3,699.50 331669 11/14/17 8,715.81 331670 11/14/17 450.25 331671 11/14/17 4,039.16 331672 11/14/17 2,258.25 331673 11/14/17 412.92 331674 11/14/17 622.44 331675 11/14/17 241.40 331676 11/14/17 987.60 331677 11/14/17 2,075.46 331678 11/14/17 115.32 331679 11/14/17 78.00 331680 11/14/17 239,732.50 2/2 PAYEE PREMIER SAFETY PRO BUILD PRO -EDGE KNIFE PRUDENTIAL OVERALL SUPPLY RANDALL LAMB ASSOCIATES INC RELY ENVIRONMENTAL RIVERSIDE COUNTY SHERIFF DEPT SAN DIEGO COUNTY ASSESSOR SAN DIEGO UNION TRIBUNE SCST INC SITEONE LANDSCAPE SUPPLY LLC SMART & FINAL SOLARPLACARD INC SORIANO, R STAPLES BUSINESS ADVANTAGE STARTECH COMPUTERS STC TRAFFIC INC SYSCO SAN DIEGO INC THE HOME DEPOT CREDIT SERVICES THE SHERWIN WILLIAMS CO TRI GROUP CONSTRUCTION TSC GROUP INC U S BANK U S BANK U S HEALTHWORKS VERIZON WIRELESS WAXIE SANITARY SUPPLY WEST PAYMENT CENTER WESTERN AUDIO VISUAL WILLDAN FINANCIAL SERVICES WILLY'S ELECTRONIC SUPPLY ZOLL MEDICAL CORP DUSTIN PARKER WIRED PAYMENTS PAYCHEX BENEFIT TECHNOLOGIES ADMINSURE INC SPRINGBOARD CDFI ARCO BUSINESS SOLUTIONS CALIFORNIA NA.TIONAL j ?AICORPQRAT8D WARRANT REGISTER #20 11/14/2017 DESCRIPTION SENSORS, FILTERS / FIRE MOP 45707, FIRE CHARGES KNIFE SHARPING SERVICE / NUTRITION MOP 45742 LAUNDRY / PW N.C. CORRECTIVE ACTION PROJECT HAZARDOUS WASTE PICK UP / PW TRAINING TUITION DISPATCHER PUBLIC SAFETY/PD BLDG RCDS / HOUSING UNION TRIBUNE CLASSIFIED LISTING OCTOBER PARADISE CREEK REST. PROJECT MOP 69277 LANDSCAPE SUPPLIES / PW MOP 45756. CASA TEEN CENTER SNACKS/CSD ENGRAVED COLOR TAGS CACEO SEMINAR REIMB. / NSD MOP #450704 OFFICE SUPPLIES / CITY ATTORNEY MOP #61744/COMPUTER ACCESSORIES / MIS REIMB / T&A#90199 NC & 28TH ST. FOOD / NUTRITION CENTER TUFF SHED. ST #33 / FIRE MOP 77816 PAINT SUPPLIES / PW 18TH ST. PED. & BICYCLE ENH. PROJECT ST #33 RENTAL / FIRE CREDIT CARD CHARGES / FIRE MONTHLY CREDIT CARD STATEMENT NOVEMBER MEDICAL SERVICES VERIZON CELLULAR SERVICE OCTOBER 2017 JANITORIAL SUPPLIES / FIRE BOOKS / CITY ATTORNEY AUDIO VISUAL EQUIPMENT / LIBRARY USER FEE STUDY MOP #45763/ELECTRONIC SUPPLIES / MIS BP CUFF, ADULT / FIRE CAMERA OPERATION / STATE OF THE CITY BENETRAC ESR SERVICES BASE FEE NOV 2017 W/C ACCT REPLENISHMENT OCT 2017 FTHB PROGRAM LOAN FOR 1213 E AVE B5 NAT FUEL FOR CITY FLEET OCTOBER 2017 CHK NO DATE AMOUNT 331681 11/14/17 69.64 331682 11/14/17 981.78 331683 11/14/17 46.00 331684 11/14/17 145.16 331685 11/14/17 600.00 331686 11/14/17 3,031.00 331687 11/14/17 778.00 331688 11/14/17 14.00 331689 11/14/17 778.84 331690 11/14/17 8,617.00 331691 11/14/17 659.47 331692 11/14/17 103.86 331693 11/14/17 125.57 331694 11/14/17 104.34 331695 11/14/17 524.79 331696 11/14/17 495.23 331697 11/14/17 2,262.50 331698 11/14/17 1,648.50 331699 11/14/17 3,596.99 331700 11/14/17 111.12 331701 11/14/17 263,993.46 331702 11/14/17 2,302.78 331703 11/14/17 11,303.70 331704 11/14/17 2,299.46 331705 11/14/17 863.00 331706 11/14/17 11,477.85 331707 11/14/17 193.86 331708 11/14/17 1,659.16 331709 11/14/17 49,992.45 331710 11/14/17 3,522.50 331711 11/14/17 582.73 331712 11/14/17 242.68 331713 11/14/17 1,500.00 A/P Total 909,504.58 135089 11/10/17 508.00 151281 11/9/17 104,275.20 151305 11/9/17 70,000.00 151338 11/9/17 29,293.37 GRAND TOTAL $ 1,113,581.15 156 of 585 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 19th OF DECEMBER 2017. AYES NAYS ABSENT 157 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 158 The following page(s) contain the backup material for Agenda Item: Public Hearing and Adoption 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. ( 158 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO. ITEM TITLE: Public Hearing and adoption of an Ordinance of the City Council of the City of National City repealing Ordinance No. 2003-222G 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: 019-336- +312 EXPLANATION: See attached. DEPARTMENTS Engineering/Public Works APPROVED BY: ...470110,74„;.€/ FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: NIA ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: x Finance MIS ,STAFF RECOMMENDATION: Provide second reading and adopt Ordinance 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 2022-23.1 BOARD 1 COMMISSION RECOMMENDATION: NIA ATTACHMENTS: 1. explanation 2. Background Report w/ proposed rates 3. Sewer Rate Study 4. Notice of Public Hearing to Consider Proposed Adjustments to Sewer Service Charges 5. Ordinance 159 of 585 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 Pubc 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 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 billing of sewer -related charges, correct recording of transactions, or proper spending of Sewer Service Fund monies. On December 5, 2017, the City Council held a public hearing to consider proposed adjustments to sewer service charges in accordance with Proposition 218 requirements. Banff nrnuiaier+ a formal preeen4atinr, There ,mere r c rs. eue is from the on the item. Upon conclusion of the public hearing, the City Clerk announced that a total of six formal protests were received from National City property owners, which does not meet the minimum required to constitute a majority protest. After closing the public hearing, City Council took action to adopt Resolution No. 2017-236 approving the proposed rate adjustments for sewer service charges for fiscal years 2018-19, 2019-20, 2020-21, 2021-22, and 2022-23. City Council then opened a new public hearing to introduce an Ordinance 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. Staff recommends that City Council repeal Ordinance No. 2003-2226 and adopt an Ordinance establishing sewer service charges for fiscal years 2018-19, 2019-20, 2020- 21, 2021-22, and 2022-23. 160 of 585 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 FY2010the 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 annuai costs from FY 2016 through FY 2022 for Phase I of the Pure Water Program. These annuai 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 161 of 585 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. z. 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, C!P and Metro expenses, compared to current and proposed sewer rates, are included in the City's rate case and summarized in the charts below. 162 of 585 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 202 ) i FY18 FY19 FY2O FY21 = FY23 Sewage Transport and Treatment (MWWD) National City Sewer CIP Sewer Fund Balance (without rate increases) 18,000,000 16,000,000 14,000,009 12,000; 000 10,000,000 8,000,000 • 6,000,000 4,000,000 2,000,000 0 National City Maintenance & Operations Projected Revenues (without rate increases) Sewer Service Fund Revenue Projections vs Expenses With Rate Increases (FY 2018 - FY 2023) 1 FY18 FY19 FY20 Sewage Transport and Treatment (MWWD) National City Sewer CIP Sewer Fund Balance (with rate increases) FY21 FY22 1 FY23 1; National City Maintenance & Operations - Projected Revenues (with rate increases) 163 of 585 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 i 2019 1 2020 1 2021 1 2022 1 2023 Residential: $ Per Month Single Family $ 32.08 $ 35.23 $ 38.68 $ 42.47 $ 46.51 $ 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 Mon -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 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. Sewer Service Fund with Establishment of Reserves With Rate Increases (FY 2018 - FY 2023) 15,000,000 10,000,000 5,000,000 0 FY18 FYI9 _ FY20 FY21 FY22 FY23 (5,000,000) Projected Revenues (with rate increases) 1 Recommended Reserves Use / Replacement of Reserves Total Expenses Sewer Fund Balance (after establishment of reserves) 164 of 585 Long Range Financial Plan: Establishment & Use of Reserves Table 5 Totai Revenue $ 6,957,939.32 $ 7,881,478,71 $ 8,696,609.30 $ 9,521,184.3. / $10,409,369.16 $ 11,443,792.61 Tonne Expenses 1_$ 7,473,749.71 $ 10,221,478.71 $ 12,671,609.30 $11,866,184.34 $ 9,794, 69.16� 3 $ 10,148,792_61 Fund Sa6.trce Prior to Reserves $15,014,450,61 $ 12,674,450.81. $ 0,699,450.61 $ 6,354,450.62 $ 6,969,450,61 $ 8,264,450,61 SeeerveTarps - 0.9erett.r4sgssh FAH $ 3.796,874 86 $ 4,110,739 36 $ 5,333,804.65 $ 4,933,992.17 $ 3„897,184-58 5 4A74,396.31 Melly Cash Fi�sx $ 4,400,000 00 S 4,400,000.00 S 4,400,69t1.09 $ 4,4031000 Gill $ 4,400,000 00 $ 4,400,000-00 Emergerrsylei4.49 EYasster $ 1,245,624.95 S 1,370,746.45 $ 1,778,60155 $ 1,644,364..E $ 1,299,061.53 $ 1,358,137-10 f ire'. [ Emu:9ia r Reserve $ Lompoc) 00 $ 1,000,000.= $ 1,009,90E,0 $ 1 $ i,ocomozo $ 1,000,000 o0 , Capital Replacement Reserve $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1 00,000.00 $ :.- .;4,000.0I'i $ 1000,000.00 Teal ReCOMITIMOdedaeearves $ 11,382,49981 $ 11,880,985.81 $ 13,514,406.20 $12,977,456.23 $11,596,246,11 $ 11,832528.41 Fund BaieneeQvarijtittdejrTarget 5 3,631,950.S0 $ 793,464.80 $ (4,814,955.591 $ (6,623,005.621 S (4,626,795.50 $ (3,568,077.80) Wait /Repboarasp of Reservoir $ (515,810.39) $ (2,340,000.00) $ tS,97 6Q) $ AgO.ADD $ 615,000.0A $ 1.,296,090.00 33 14: LE 22 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. 690 iVionthly Sewer Rate Comparison Tor Participating Agencies in San Diego Metro System $a0 Based on 7 units of water and 3/4 inch Residential meter size for sewer billings established by January 201.6 $70 339 850 $,U V $20 510 5- flat Sewer Rete Water Consumption Based Sewer Rete National City Rate 165 of 585 166 of 585 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 By: NV5 15092 Avenue of Science, Suite 200 San Diego, CA 92128 858.385.0500 167 of 585 City of National City Sewer Rate Study September 2017 Prepared fox: 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 168 of 585 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 Figures 20 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 NV5 169 of 585 Figure 3-4 Metro Member Agencies Sewer Rate Conraparison 21 Appendices Appendix A — Wastewafrjr Rae 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 CIF 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/I Milligrams per Liter O&M Operations and Maintenance PA Participating Agency in the Sari Diego Metro System TSS Total Suspended Solids — A Measure of Sewage Strength US EPA U.S. Environmental Protection Agency City of National City — Sewer Rate Study 2017 170 of 585 _.V ate- � 1.0 Executive Summary This report was prepared for the City of Nadonal 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 NV5 171 of 585 1.1 Findings During the course of our analysts in relation to the specific goals of the study we made the foiiowing 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. 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) FYI 2098 FYE 2019 FYE 2020 II FIE 2021 FYE 2022 FYE 2023 1 Beginning Balance $15,530,261.00 $ 15,014,450.61 $ 11,760,911.22 $ 6,037,241,24 $ 1,128,996.22 $ (1,707,433.63) 2 Revenue: , 3 Nan-Operaling Rnenue $ 16,900.00 $ 15,000.00 $ 15,000.00 5 15,000.00 $ 15,000.00 $ 15,000.00 4 Usar Fees $ 6,942,939.32 $ 6,942,939.32 $ 6,942,939.32 $ 6,942,939.32 $ 6,942,939.32 $ 6,942,939.32 5 Total Revenue $ 6.,657,959.32,J 6,967,939.32 $ 6,967,939.32 $ 6,957,939.32 $ 6,967,939.32 $ 6,957,939.32 • 6 Operations Expenses: 7 Collecdon System Maintenance $ 1,935,415.00 $ 2,010,522,43 $ 2,099,213.62 $ 2,184,253.96 $ 2,263,206.20 5 2,341,457,46 8 Metro and JPR costs - Lou/Projection $ 5,538,334.71 5 6,205,956.28 $ 8,572,395.88 $ 7,681,930.38 $ 5,531,162.87 $ 5,807,325.16 9 $ 7 171 7i9 7' $ 8,221,478.71 $ 1 n 671 acip :0 C C n."S, 'I:,d.:44 ! 7 704.RRQ 1.R ! ? R 1.01.7S9 R7 11 12 Capttai Improvement Program: 13 Call on System CiP $ $ 2,000,090.00 $ 2,900,090.00 $ 2,090,000.90 $ 2,000,000.00 $ 2,000,000.00 i 14 To"a Expenses $ 7,473,749.71 $ 10,221,478.71 $ 12,671,609.30 $ 11,866,184.34 $ 9,794,369.18 $ 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 $ (1,707,433.63) 1 (4,898,285.92) 16 Reserve Targets: 17 OperationslCash Flow $ 3,736,674.86 $ 4,110,739.36 $ 5,335,804.65 $ 4,933,092.17 $ 3,897,184.58 $ 4,074,395.31 18 Metro Cash Flow $ 4,400,000.90 $ 4,400,000.00 $ 4,400,900.00 $ 4,400,000.00 $ 4,400,000.00 $ 4,400,000.00 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 Expansion Reserve$ 1,000,000.90 $ 1,000,000.00 $ 1,000,000.00 ` $ 1,090,000.00 $ 1,000,000.90 $ 1,900,000.00 29 Capital Replacement Reserve $ 1,000,900.00 $ 1,000,0130.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 22 Total Recommended Reserves $ 11,382,499.81 311,880,985.81 $ 13,514,406.20 $ 12,977,458.23 $ 11,596,246.11 $ 11,832,526.41 .23 Fund Ba'ancs Overf(Urrdcr) $ 3,631,950.80 $ {130,074.59) $ (7,477,164.96) $ (11,848,460.01) 5(13,303,679.73) $ (16,730,815.32) Reserve Target 1 - 3. The City does not have a formal reserve policy for their operations or capital funds. City of National City— Sewer Rate Study 2017 4 NV5 172 of 585 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 str►.:ctural changes to the current system- of charges. 1.2 Recommendations The following lists NV5, Ins.'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 Adfusttnent Fiscal Year FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 Revenue Adjustment Effective Month 9.8% 9.8% 9,8% 9.8% 9,8% 9.8% July July July July 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 NVS 173 of 585 Table 1-3 ,- Sewer Enterprise Fund T n Range Plan with Recommended Revenue Adtustments YE 291E E FYE 2019 FYE 2020 FYE 2021 FYE 2022 FYE 2Q23 i 1 Beginning Balance $ 15,530,261.00 f $ 15,014,450.61 $ 12,674,450.61 $ 8,699,450.61 $ 6,354,450.61 1 $ 6,969,456.61 2 Revenue: 3 Non -Operating Revenue $ 15,000.00 $ 15,000.00 $ 15,000.00f $ 15,006.06 $ 15,000.00 $ 15,000.00 4 User Fees $ 6,942,939.32 $ 7,866,478.71 $ 6,681,609.30 15 9,506,184.34 $10,394,369.16 $ 11,428,792.61 5 Total Revenue $ 6,957,939.32 $ 7,881,478.71 $ 8,695,609.30 $ 9,521,184.34 $10,409,369.16 $ 11,443,792.61 6 Operations Expenses: 7 Collection System Maintenance $ 1,935,415,00 $ 2,015,522.43 $ 2,099,213.62 $ 2,184,253.96 $ 2,263,206.29 $ 2,341,467.45 8 MetroandJPAcosts- LowProjection $ 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 COP $ - $ 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 Priorto Reserves $15,014,450.61 $ 12,674,450.61 $ 8,699,459.61 $ 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 $ 1,299,061.53 $ 1,358,132.10 " 18 Capital Expansion Reserve $ 1,000,000.00 $ 1,006,000.00 $ 1,000,000.00 $ 1,000,00D-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 $ 1,000,060.00 20 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 21 Fund Balance Over/(Unde)rTarget $ 3,631,950.80 $ 793,464.80 $ (4,814,955.59) $ {6,623,005.52) $ (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) $ 515,000.00 $ 1,295,000.00 City of National City — Sewer Rate Study 2017 6 NVS 174 of 585 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 Sewer Service Charges User Class Residential: $ Per Month Single Family Mu lti-family/Conti o Mobile Homes 'Non -Residential: $ Per HCF Commercial - Low Commercial - Medium Low Commercial - Medium Commercial - Medium High Commercial - High Current 2019 2020 2021 2022 2023 $ 32.08 $ 35.23 $ 38.68 $ 42.47 $ 46.61 $ 51.18 $ 25.00 $ 27.48 $ 30.17 $ 33.13 $ 36.36 $ 39.92 $ 19.50 $ 21.49 $ 23.60 $ 25.91 $ 28.43 I $ 31.22 $ 3.03 $ 3.61 $ 3.97 $ 4.35 $ 4.78 $ 5.25 $ 3.12 $ 3.89 $ 4.33 $ 4.73 $ 5.13 $ 5.66 $ 4.09 $ 4.69 $ 5.37 $ 5.76 $ 6.13 $ 6.80 $ 4.90 $ 5.48 $ 6.40 $ 6.80 $ 7.12 $ 7.95 $ 6.12 $ 6.82 $ 8.14 $ 8.55 $ 8.79 $ 9.88 City of National City - Sewer Rate Study 2017 7 NV5 175 of 585 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 RDU per month. The City's first proposed rate adjustment will not begin until July 1, 2018. By that lime 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 rare 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°Jo lower than the existing (FY 2018) average Metro member agency rate of $50.82. $90 $80 $70 $50 $40 $30 diV $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 krch Residential meter size for sewer billings established by January 20213 1 5 F. G o 44 Gee O �'co * flat Sewer Rate O Water Consumption Based Sewer Rate O National City Rate City of National City — Sewer Rate Study 2017 8 Ni( 5 176 of 585 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 '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 a nd expense cycles. The 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% cash flow reserve is recommended. Metro Cash Flow Reserve Emergency/Natural Disaster Reserve Capital Expansion and Replacement Reserves 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 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 andjor FEMA reimbursements. 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. City of National City — Sewer Rate Study 2017 9 NVS 177 of 585 Iminempler M 4. NV5 recommends that the City provide a provision to give the City the ability to pass through City of San f)iego 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, tbe Government Code reads as follows: An agency prirviding water, wastewater, sewer, or refuse collection service may adopt a schedule of fees or charges authorising automatic adjustments that pass through increases in wholesale charges for water, sewage treatment, or wastewater treatment or adjustments for inflation, fit complies with all of the following (a) It adopts the schedule offees or charges for a properly -related service for a period not to exceed iveyears pursuant to Section 53755. (b) The schedule offees or charges rtng include a schedule of adjustments, including a clearly defined formula for adjaasting for inflation. Any inflation adjustment to a fee or charge for a property -related service shall not exceed the cost ofproviding that service. (c) The schedule offees or charges for an agency 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 NV5 178 of 585 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 (I'detro) transportation, treatment and disposal costs, reserve levels, and identified capital imps veeent 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 NVS 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 environmentally safe and efficient mariner 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 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 (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 Requirements City of National City — Sewer Rate Study 2017 11 NVS 179 of 585 (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 projected capital improvement costs (CIP) are incorporated into this Study and form the basis .for the City's annual capital requirements. 2.2 Background: 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 Lange 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 range of annual costs from FY 2016 through .ki Y 2022 for Phase 1 of the Pure Water Program These projections provided both a tow 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 N-V 5 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 FY2D FY21 FY22 FY23 .MetroLowTreatmentCosts $5.520,749 $6,187,843 $ 8,553,739 $7,662,714 $5,511,370 $5,786,939 Metro Transportation 8, JPA Costs $ 17,586 $ 18,113 $ 18,657 $ 19,216 $ 19,793 $ 20,387 Total Metro Low Costs $5,538,335 $6,205,956 $ 8,572,396 87,681,930 $5,531,163 $5,807,325 Metro High Treatment Costs $6,101,880 $6,839,195 $10,264,486 $9,195,257 $6,613,645 $6,944,327 ° Metro Transportation & JPA Costs $ 17,586 $ 18.113 $ 18,657 $ 19,216 $ 19,793 $ 20,387 Total Metro High Costs $6,119,466 $6,857,308 $10,283,143 $9,214,473 $6,633,438 $6,964,714 City of National City — Sewer Rate Study 2017 12 NVS 180 of 585 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 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. 500 *so $70 $50 $40 JJ30 $20 310 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 meter size for sewer billings established by January 2018 F .0 le 0 40 4e de ee- Flat Sewer Rate Water Consumption Based Sewer Rate City of National City —Sewer Rate Study 2017 13 56. NV5 181 of 585 3.0 Wastewater Rate Study 3.1 Overview of the Sewer Service Charge Update Process A comprehensive rate study Lypically utilises 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 Overvr 'ew of the Comprehensive Rate Study Analysis Revenue Requirement Analysis Cost of Servlce 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 r _ ._ CT?, . t. _ balanced fund both operations and maintenance 1O� and a:.�.�ji%n.i :rill=,�iFiuC.:.;:u. (CT?) �i iliit":: FF-. 3fldz3:1.3C:G'ii 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, anal 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 NYS 182 of 585 Revenue ReguiremerntAnalysis 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 requirement 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 minion pet 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 CIP, 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 1Perscrel Services Mahtenance & Operations Metro Treatment & Transportation Administrative Collection System CIP FY19 FY20 FY21 FY22 FY23 $ 991,191 $ 1,044,152 $ 1,097,540 $1,143,891 $ 1,188,573 $ 457,423 $ 471,146 $ 485,280 $ 499,838 $ 514,834 $ 6,206,955 $ 8,572,396 $ 7, 1,93O $5,531,163 $ 5,807,325 $ 540,349 $ 556,560 $ 673,257 $ 590,454 $ 608,158 $ 2,026,560 $ 2,027,35E $ 2,028,177 $2,029,022 $ 2,029,893 $10,221,479 . $12,671,609 $11,866,184 $ 9,794,369 $10,148,793 City of National City — Sewer Rate Study 2017 15 NVS 183 of 585 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 01%) 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 R Person nel Services b Maintenance &Operations Metro Treatment & Transportation Administrative Collection System GIP 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 Oune 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 guidel n.es and exposures the following formal reserve policy is recommended for the City consisting of three cash flow reserves and two capital reserves. The establishment ment of this reserve policy has been integrated into the projected revenue ierluirernerita ai l 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 cycles. The City of National City paces 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 50% cash flow reserve is recommended to allow for the orderly payment of the City's sewer enterprise fimd's expenditures throughout the fiscal year City of National City — Sewer Rate Study 2017 16 NV5 184 of 585 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. Emergency/NaturaiDisaster 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 1 J J1+iti 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 Staring. in FY 2019 from FY 2.018 through FY 20!?.1 mh.,- useireplacement 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 185 of 585 Table 3-2: City of National City Long Range Financial Plan. I 1 FYE 201E I FYE 2019 1 FYE 2020 FYE 2021 FIE 2022 I FYE 2023 1 Beginning Balance 315,530,281.00 $15,014,450.61 $ 11,750,911.22 $ 6,037,241.24 $ 1,128,995.22 $ (1,707,433.63)• 2 Revenue: 3 Non -Operating Revenue $ 15,000,00 $ 15.000.00 $ 15,000.00 $ 15,000.00 $ 15,00000 $ 15,000.00 4 User Fees $ 6,942,939.32 $ 6,942,939.32 $ 6,9.42,939.32 $ 6,942,939.32 8 8,942,939.32 8 6,942,939.32 5 Total Revenue $ 6,957,939.32 $ 6,957,939.32 $ 13,957,939.32 $ 6,957,939.32. 3 8,957,939.32 3 6,957,939.32 6 Operations Expenses: . 7 Collector. System Maintenance $ 1,935,415.00 $ 2,015,522.43 $ 2,699,213.62 $ 2,184,253.96 $ 2,263,206.29 $ 2,341,487.45 8 Metro and JPAcosts- Low Projection $ 5,538,334.71 $ 6,205,956.28 $ 8,572,395.88 $ 7,581,930.38 $ 5,531,162.87 $ 5,807,325.16 9 10 Total Operations Expenses $ 7,473,749.71 $ 8,221,478.71 $ 10,871,609.30 $ 9,886,184.34 $ 7,794,369.16 $ 8,148,792.61 11 12 Capita! Improver t Program: 13 Collection System ClP $ - $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 $ 2,000,000.00 14 Total Expenses $ 7,473,749,71 $ 10,221,478.71 $ 12,671,609.30 $ 11,866,184.34 $ 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 $ 1,128,996.22 $ (1,707,433.63) $ (4,896,2136.92) 16 Reserve Targets: 17 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 3 4,400,600.00 $ 4,400,000.00 $ 4,400,000.00 19 Emergency/Nat. Disaster $ 1,245,624.95 $ 1,370,246.45 $ 1,778,601.55 $ 1,644,364.06 $ 1,299,051.53 $ 1,358,132.10 20 Capital Expansion Reserve $ 1,000,000.00 $ 1,006,006.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,060.00 $ 1,000,000.00 21 Capital ReplacernentReserve $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,900.00 $ 1,000,000.00 22 Total Recommended Reserves 5 11,382,499.81 311,880,985.81 $ 13,514,406.20 $ 12,977,456.23 $ 11,595,248.11 $ 11,832,528.41 23 Fund BalanceOverl(Under) $ 3,631,950.80 $ (130,074.59) $ (7,477,164.96) $(11,848,466.01) 3(13.303.679.73) $ (16,730,815.32) Reserve Target Cost of Service Analysis: The cost of service analysis revealed that several maior 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 Ca!iforria the City'3 ciizcLs 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 18 NVS 186 of 585 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 roil. As noted above the gallons for residential EDUs were revised to 240 gpd per EDU and the most recent water usage for commercial/industrial users was included. Table 3-3 sl.mtmari7es the current number of City users and their projected sewer flows based on the current tax roll water use data for FY 2018. Table 3-3: Summary of Current Users and Estimated Sewer Flow Units of Service and Loadings FLOW: e0D: User Group No. of Active Customers 5 ,873 9,840 370 (A) Total Flow (MGD) 1.4095 1.8420 0.0542 (a) Total Flow (HCF) RI 514.47 67235 19.77 ID) BOD User (MGIL) 200 200 200 Annual OD (LBSfYR) 858,116 1,121,439 32,977 SS: SS per User (MGIL) 200 200 200 Annual (nu Load (LBSIYR) 858,116 1,121,439 Single Family 1M48m/Cond0 Mobile Homes Subtotal -Residential 16,083 3.3057 0 1,208.59 2,012,532 32 977 2,012,532 Commercial - Low Commercial - Medan Low Commercial - Medium Commercial - Megrim Nigh Commercial - ligh 770 203 8 90 29 0.7045 0.1495 0.0387 0.1014 0.0482 343,530 72,891 18,858 49,445 23,494 257.13 54.56 14.12 37.01 17.59 200 200 400 600 680 428,882 91,001 47,087 185,190 99,726 200 300 400 500 900 428,882 136,502t 47,087 154,325 131,991 Subtotal Non -Residential 1,100 1.0422 508,218. 380.40 551,507 898,78 TOTAL 17,183 4.3479 508,218 1,588.99 2,864,419 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 regulations. The City of National City fist established their current rate structure in the mid-1990's aid 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 RDU'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 FDU. 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 NV5 187 of 585 All classes of users will continue to be billed their annual sewer service charge on the County of San Diego ta.s 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 Apperidix A to this Study Table 3-4: Comparison of Current Versus Proposed Sewer Uses Rates User Class Current 1 2019 I 2020 2021 2021 2023 Residential: $ Per Month !I Single Family $ 32.08 $ 35.23 $ 38.68 $ 42.47 $ 46.61 $ 51.18 Mu Iti-fa mily/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 - Hilt _ $ 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 sumniarives 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 CoE1Epormut2i of FY 2109 Shlg e a rii car `e�d� Monthly Rate ! San Dlego Metro • Nattonal City CIP i NC Collection System 1 Use of Reserves City of National City - Sewer Rate Study 2017 20 NYS 188 of 585 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 adjustment 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 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 $go $80 $70 $00 $50 $40 $30 24 310 Fib ,re 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 3f4 inch Residential metersize for sewer billings established by January 2018 ® Flat Sewer Rate ti ▪ Waiter Consumption Based Sewer Rate A National City Rate It do y. •." e`er ' Ce i1 r1 ,#' City of National City — Sewer Rate Study'2017 21 NVS 189 of 585 Appendix A - Rate Model • Assumptions • Wastewater Operations & Maintenance Budget • Budget Summary • Step 1 — Customer Summary and Estimated Flows • Step 2 — Determination of Unit Costs c Step 3 — Sewer User Rate Calculations by Fund and Cost City of National City — Sewer Rate Study 2017 190 of 585 NkTratlelit - . INCORIP MAT 511J 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 XII!D 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 2022123. 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 riCto:itww w.roationalcitvca.govioover rneraiiengineering-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 frnanc:ally 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 & Public Wcrks 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 191 of 585 '4° 1v PIT C 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.nationalcitvca.aovlgovemmentlenoineerina-public workslenaineering- 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 The t, a ; ct ct rm;4: ct be that of the prcpe�y cwner of counted. .::�., sS��u::ac4. on t�:�:. protect 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: 1i . 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 192 of 585 /. C 1., UFORNiA NaIONAL.ctirr aaci ItirCORPiiitiTtO 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 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 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 paced 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 193 of 585 turriaDNAL-Clry 307/ 0kg. nil 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 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 $ 35.36 $ 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 in the rate table above. If you have any questions about this process, or this nonce 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 194 of 585 ORDINANCE NO. 2017 — 2442 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 2003-04, 2004-05, and 2005-06. 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. 195 of 585 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 19th day of December, 2017. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ordinance No. 2017-2442 Ron Morrison, Mayor Page 2 of 3 Establishing Sewer Rate Charges December 19, 2017 Fiscal Years 2019, 2020, 2021, 2022, 2023 196 of 585 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. 2017-2442 Page 3 of 3 Establishing Sewer Rate Charges December 19, 2017 Fiscal Years 2019, 2020, 2021, 2022, 2023 197 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 198 The following page(s) contain the backup material for Agenda Item: Public Hearing and Adoption 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 streets based on certified 198 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO. ITEM TITLE: Public Hearing and adoption 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 streets based on certified Engineering and Traffic Surveys PREPARED BY: Stephen Manganiello PHONE: 610-336-4382 EXPLANATION: See attached. DEPARTMENT: Engineering/Public Works APPROVED BY: FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Provide second reading and adopt Ordinance of the City Council of the City of National City amending Title 11, Section 11.16.010 — Speed Zones Designated. BOARD 1 COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Explanation 2. Speed Survey Summary and Recommendations 3. Ordinance 199 of 585 Explanation 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. 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 property 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. lip W f.Y♦ The engineering and traffic survey, as defined in Semen 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 reasonable 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." 200 of 585 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: 1. The posted speed may be reduced by 5 mph from the nearest 5 mph increment of the 85h 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 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 -Call" 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 2B.13 of the MUTCD. Attached is a summary' c!. the speed x.:urecy results and --,.a.,......nreo-ull..s:.....��.. A ; the certified vw. s .e � ,day V m5 the m`.na.e�..t, ai�.e u V �..�� i Yaa:.1i : 5F ! iq:k ia.A ��,a l_Fi 14, A. �1� the 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. On December 5, 2017, the City Council held a public hearing and introduction of the Ordinance. Staff supports the findings and recommendations of the certified engineering and traffic surveys and therefore, recommends adoption 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. 201 of 585 Tar lr, J; Speed Survey Summary and Recommendations (Page 1 of 8) Location Number Location Name ,., Existing Speed Limits Limit (mphj 85th Percentile Speed {mph) 10 mph Pace Accraents per Million Vehicles Miles (ACC1MVM) Average Daily Traffic, (ADT) Recommended Speed Limit (mph) Justificat n and Recommendation 1 Harbor Drive North City Limit to 8th Street 45 MPH 45 MPH 34 - 43 D.000 23,001 45 MPH Round to rest 5 mph Increment of the 85th • percentile speed. 2 Harbor Drive 8th Street to Civic 40 MPH Center Drive 48 MPH 39 - 48 0.095 17,567 45 MPH Round 85th percentile speed down; no other reduction taken. 3 Civic Center Tidelands Avenue Drive to 19th 35 MPH Street 38 iv1PH 28 - 37 0.465 I 2,902 35 MPH iRound $51h percentile sped down; no other reduction taken. 4 Tidelands Avenue 19th Street to Bay Manna Drive 35 MPH 35 MPH 25 - 34 1.784 1,906 35 MPH Round to nearest 5 mph Increment of the 85th percentile 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 percentile 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 percentile screed. 7 Civic Center Cleveland Avenue Drive to 19th Street 35 MPH 37 MPH 27 - 38 1.327 4,404 35 MPH Round to nearest 5 mph increment of the 85th per:entile speed. Cleveland 19th Street to Bay Avenue 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 percentile speed. 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 Civic Center iv -Arson Avenue Drive to 18th Street 30 MPH 35 MPH 26 - 35 0.502 3,509 30 MPH Consistency with adjacent segment. 18th StrOi.t 1n vvnson avenue 13 Hoover Avenue 24th Street 22nd Street to Mile of Cars Way EII 32 MPH 30 MPH 28 MPH 19-28 15-24 0.419 0.000 3,416 30 MPH percentile speed. 2,998 25 MPH Round 85th percentile speed down; no other reduction taken. 14 Hoover Avenue Miles of Cars Way to 30th Street 15 Hoover Avenue Roosevelt Avenue Roosevelt Avenue Roosevelt Avenue Roosevelt Avenue 35 MPH 30th Street to 33rd Street Division Street to 4th Street 4th Street to 8th Street 8th Street to Plaza Boulevard Plaza Boulevard to Civic Center Drive 41 MPH 36 MPH 34 MPH 30-39 0.246 25-34 0.000 6,179 35 MPH Consistency with adjacent segment. 3.230 35 MPH 35 MPH 36 MPH 35 MPH 34 MPH 25 MPH I 25 MPH 28 - 37 0.521 4,611 24-33 0.402 5,446 30 MPH 30 MPH Round to nearest 5 mph increment of the 85th ercentJle speed. Bike facility / bike safety. Blke facility ! bike safety. 18-27 0.000 5,908 30 MPH Consistency with adjacent segment. 25 MPH 30 MPH 22-31 1.036 2,814 30 MPH Round to nearest 5 mph in•]rement of the 85th 'percentile speed. 202 of 585 City of National City 2 016/2017 Citywide Enginee-ing and Traffic Survey ' October 2017 Location Number 20 in 24 25 26 27 28 29 30 31 32 33 Location Name Limits Roosevelt Avenue West Avenue National City Boulevard National City Boulevard National City Boulevard National City Boulevard National City Boulevard • Civic -Center Drive to 16th Street 16th Street to 18th Street Division Street to 4th Street 4th Street to Sth Street 8th Street to Plaza Boulevard Tat: ie 3: Speed Survey Existing Speed Limit (mph) 30 MPH Plaza Boulevard to Civic Center drive Civic Center Drive to 16th Street N.t• .I City Boulevard National City Boulevard _ National City Boulevard National City Boulevard D Avenue D Avenue ee 18th Street 18th Street to 24th Street D Avenue 24th Street to 30th Street 301h Street to South Ci Limit Division Street to 4th Street 4th Street to 8111 Street 8th Street to Plaza Boulevard 34 D Avenue Plaza Boulevard to 16th Street 35 36 37 D Avenue 0 Avenue 0 Avenue 38 D Avenue 39 Highland Avenue 40 Highland Avenue 41 Highland Avenue 16th Street to 18th Street_ 18th Street to 24th Street 24th Street to 26th Street 26th Street to 30th Street North City Limit to Division Street Division Street to 4th Street 4th Street to 8th Street 30 MPH 30 MPH 30 MPH 30MPH • 33 MPH 21 - 30 85th Percentile Speed (mph) 32 MPH 50 MPH 36 MPH Summary and Recommendations (Page 2 of 8) 10 mph Pace 21-30 22 - 31 27-36 36 MPH 26-35 35 MPH 37 MPH 2B - 37 3D MPH 30 MPH 35 MPH 35 MPH 35 MPH 25 MPH 25 MPH 25 MPH 3D MPH 30 MPH 30 MPH 30 MPH 35 MPH 36 MPH 40 MPH 37 MPH 29 MPH 30 MPH 35 MPH 35 MPH .26 MPH 30 MPH 30 MPH 38 MPH 34 MPH 39 MPH 36 MPH 32 MPH 35 MPH I 33 MPH 25-34 28-37 32-41 30-39 22-31 18-27 21 - 30 21 - 30 28-37 24-33 31 - 40 26-35 24-33 22-31 c rye = pe Million Vehicles Miles (ACCIMVM) Average Daily Traffic (ADT) 0.000 2,547 0.000 0.586 1,522 16,800 1.386 14,229 0.273 16,103 0.455 12,773 0.625 14,058 0.673 13,040 0.193 15,157 0.261 17,545 0.380 20,307 2.051 4,280 1.769 0.000 4,948 6,785 0.670 6,535 0.000 6,142 0.511 5,707 0.000 4,759 0.000 4,714 0.000 15,049 2.899 13,533 203 of 585 Recommended Speed Limit (mph) 30 MPH 30 MPH 35 MPH 36 MPH 35 MPH Justification and Recommendation Round to nearest 5 mph increment of the 85th percentile speed. 35 MPH 35 MPH Round to nearest 5 mph increment of the 85th ercentile speed. Round to nearest 5 mph increment of the 85th ercentile s. eed. Round to nearest 5 mph Increment of the 85th ercentile speed. Round to nearest 5 mphincrement of the 85th percentile speed. Round to nearest 5 mph increment of the 85th percentile speed. • Round 85th percentile speed down; no other reduction taken. 35 MPH Round to nearest 5 mph increment of the 85th iercentile seed. 35 MPH Round to nearest 5 mph increment of the 85th • ercentile seed. 35 MPH Consistency with adjacent segment. Round to nearest 5 mph increment of the 85th percentile speed. Round 85th percentile epeed down; no other reduction taken_ 25 MPH Round to nearest 5 mph increment of the 85th percentile speed. 25 MPH Round to nearest 5 mph increment of the 85th percentile speed. _ 25 MPH Bike faculty 1 bike safety. 35 MPH 25 MPH 25 MPH • R'ke facility 1 bike safety. 35 MPH Round 85th percentile speed down; no other reduction taken. 35 MPH 35 MPH Round to nearest 5 mph inurement of the 85th percentile speed_ Round 85th percentile speed down; no other reduction taken. 30 MPH Consistency with adjacent segment. Round to nearest 5 mph Increment of the 85th ercentile seed• Round 8501 percentile speed down; no other reduction taken. 30 MPH 30 MPH City of National City 2016/2017 Citywide Engineering and Traffic Survey I October 2017 Tulle 3: Speed Survey Summary and Recommendations (Page 3 of 8) Location L Number Existing Speed Location ttiant.e Limits Limit (mph) 85th Pereentiie Speed (mph) 10 mph Pace cm en sper Minion Vehicles Miles (ACC/MVM) Average Daily Traffic (ADT) Recommended Speed Limit (mph) Justification and Recommendation 42 _ Highland Avenue 8th Street to 35 MPH Plaza Boulevard 30 MPH 21 - 30 1.340 16,407 30 MPH Round to nearest 5 mph increment of the 85th eroentile speed. 43 Highland Avenue Plaza Boulevard 35 MPH to 16th Street 35 MPH 27 36 _—percentile 1.283 20,437 35 MPH ound to nearest 5 mph increment of the 85th speed. 44 Highland Avenue 16th Street to 35 MPH 18th Street 33 MPH 23 - 32 0.591 22,234 35 MPH Round to nearest 5 mph Increment of the Bah speed. 45 Highland Avenue 18#h Street to 35 MF'H 24th Street 35 MPH 27 - 36 0.682 21,403 _percentile 35 MPH Round to nearest 5 mph increment of the 85th peroentle speed. 46 Highland Avenu24th Street toe 35 MPH 30th Street 36 MPH 27 - 36 0.971 22,537 30 MPH Pedestrian safety / proximity to school. 47 Highland Avenue 30th Street to South City Limit 32 MPH 24 - 33 0.355 _ 32,257 30 MPH Round to nearest 5 mph Increment of the 85th RoundMPH percentile speed. 48 L Avenue 8th Street to 30 MPH Plaza Boulevard 30 MPH 23 - 32 1.233 6,057 30 MPH Round to nearest 5 mph increment of the 85th percentile speed. 49 L Avenue 18th Street to 25 IV PH 18th Street 26 MPH 19 - 28 0.000 4,623 25 MPH Round to nearest 5 mph increment of the 85th eroentile speed. 50 L Avenue 18th Street to 25 MPH 21st Street 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 25 MPH 36 MPH 24th Street 26 - 35 0.000 4.620 30 MPH Residential density / frequ ency of driveways. 52 L Avenue 24th Street to 28th Street 25 M?H 29 MPH i 22 - 31 0.000 4,467 25 MPH Round 85th percentile speed down; no other reduction token. 53 L Avenue 2Btih Street to 30th Street 25 MPH 27 MPH 20 - 29 1 024 _ 4,262 25 MPH Round to nearest 5 mph increment of the 85th percentile speed. 54 Palm Avenue 1-805 to Division Street 35 MPH 1 38 MPH 29 - 38 0.000 23,486 35 MPH _ Round 85th percentile speed down; no other reduction taken. 55 Palm Avenue Division Street to 4th Street 35 MPH 1 35 MPH 28 - 37 0.000 11,498 30 MPH Pedestrian safety1 proximity to school. 56 4th Street to 13th Palm Avenue 35 MPH 33 MPH Street 24 - 33 0.530 8,269 30 MPH Round 85th percentile speed down; no other p ' reduction taken. 57 Palm Avenue 8th Street to 35 MPH Plaza Boulevard 32 MPH ' 24 - 33 0.831 7,541 30 MPH Round to nearest 5 mph increment of the 85th speed. 58 Plaza Boulevard Palm Avenue to 1Bth Street 35 MPH 32 MPH 26 - 35 1.021 6,732 __percentile 30 MPH Round to nearest 5 mph Increment of the 85th percentile sped. 59 Palm Avenue 16th Street to 35 MPH 18th Street 27 MPH 17 - 26 2.044 4,266 25 MPH Round to nearest 5 mph Increment of the 85th sated. 60 Palm Avenue 18th Street to 35 MPH 22nd Street• 27 MPH 16 25 0.000 966 ,percentile 25 MPH Round to nearest 5 mph increment of the 85th speed. 61 _� 18th Street to r ewell Street Prospect Street 35 MPH 39 MPH Y 29 - 38 0.000 J 2,618 ,gerr_entite 35 MPH Round 85th percentile speed down; no other reduction taken. 62 Prospect Street to t3rove Street Sweetwater Road 25 M PH 31 MPH 23 - 32 0.696 1,8 25 MPH — Fiesidenlie density 1 frequeancy of driveways. 63 Euclid Avenue NorthCity Limit to Division Street 35 MPH 41 MPH 32 - 41 0.467 12,585 35 MPH Consistency with adjacent segment. 64 Division Street to i Euclid Avenue 4th Street 35 MPH 40 MPH - 31 - 40 0.171 12,e42 _ 35 MPH Pedestrian safety / proximity to school, perk. [ 204 of 585 City of National City 201e12017 Citywide Engineering and Traffic Survey 1 October 2017 Location Number Location Name 65 Euclid Avenue Limits Tel Existing Spec Limit (mph) 4th Street to 8th Street 35 MPH 66 Euclid Avenue 67 Euclid Avenue 8th Street to Plaza Boulevard Pura Boulevard to 16th Street 35 MPH 35 MPH 68 Euclid Avenue 69 Euclid Avenue 16th Street to 18th Street 18th Street to 24th Street 35 N PI-1 35 MPH 70 Euclid Avenue 24th Street to Sweetwater Road 45 MPH 71 Harbison Avenue 72 Harbison Avenue Division Street to 4th Street 30 MPH 73 Harbison Avenue 4th Street to 8th Street 30 MPI.1 8th Street to Plaza Boulevard 35 MPH 74 Harbison Avenue 76 Plaza Bonita Road Plaza Boulevard to 16th Street Sweetwater Road to Bonita Mesa Road 35 MPH 40 MPH Plaza Bonita Center Way 77 Division Street Valley Road to Sweetwater Road 35 MPH National City Boulevard to D Avenue 30 MPH 78 Division Sreet 79 Division Street 80 Division Street D Avenue to Highland Avenue Highland Avenue to Palm Avenue Palm Avenue to T Avenue 30 MPH 35 MPH 35 MPH 81 Division Street 82 Division Street 83 Main Street 84 4th Street T Avenue to Euclid Avenue 35 MPH Euclid Avenue to Harbison Avenue 1-5 to National City Boulevard National City Boulevard to D Avenue 40 MPH 35 MPH 35 MPH 85 4th Street D Avenue to Highland Avenue 35 MPH la 3: Speed Survey Summary and rtecammenaauons rage .10109 "` 85th Percentile Spend (mph) ' 10 mph Pace Acciaeflti O Million Vehicles Mites (ACCIMVM) Average Daily Traffic (ADT) Recommended Speed Limit (mph) Justification and Recommendation 39 MPH 30 - 39 0.439 15,004 35 MPH Round 85th percentile speed down; no other induction taken. 36 MPH 28 - 37 31 - 40 1.000 0.276 17,894 13,771 35 MPH 35 MPH Round to nearest 5 mph increment ate 85th percentile speed. Round 85th percentile speed down; no other reduction taken. 39 MPH 33 MPH 23 32 0.000 12,999 3g MPH Round to nearest 5 mph increment of the 85th speed. 38 MPH 30 - 39 0.267 10,935 __Rercentile 35 MPH_ Round 85th percentile speed down; no other reduction taken. 42 MPH 33 42 0.061 15,198 40 MPHRound to nearest 5 mph Increment of the 85th percentile speed. -percentile 38 MPH 29 - 38 0.000 4,011 35 MPH Round Mil speed down; no other reduction taken. 35 MPH 26 - 35 0.642 6,882 30 MPH Residential density 1 frequency of driveways. 35 MPH 27 - 36 1.011 7,344 30 MPH Consistency with adjacent segment. 37 MPH 29 - 38 0.276 7,016 30 MPH Pedestrian safety 1 proximity to school. 37 MPH 30 - 39: 0.298 4,843 35 MPH Pound to nearest 5 mph Increment of the 85th percentile speed. 43 MPH 35 - 44 0.000 19,654 40 MPH Round 85th percentile speed down; no other reduction taken, 36 MPH 27 - 36 0.443 11,399 30 MPH Consistency with adjacent segment. 30 MPH 21 - 30 0.620 14,240 30 MPH Round to nearest 5 mph increment of the 85th percentile speed. 42 MPH 33 - 42 0.579 12,560 35 MPH Residential density 1 frequencly of driveways. Pedestrian safety f proximity to school. 41 MPH 32 - 41 0.323 16,306 35 MPH 40 MPH 30 - 39 0.437 16,263 35 MPH Pedestrian safety 1 proximity to school. 46 MPH 35 - 44 0.326 15,054 40 MPH Residential density /frequency of driveways. 32 MPH 21 - 30 0.982 26,269 30 MPH Round to nearest 5 mph Increment of the 85th percentile speed. 33 MPH 24 - 33 1.513 4,303 y�y 30 MPHRound 85th percentile speed down; no other reduction taken. 36 MPH 26 35 0.718 6,089 30 MPH Residential density ! frequency of driveways. Elike facility / bike safety. 205 of 585 City of National city 2016/2017 Citywide Engineering and Traffic Survey I October 2017 Tobin 3: Speed Survey Summary and Recommendations (Page 5 of 8) . . Location Number _-.. _ _, Location Name Limits -��- Existing Speer; Lirnit (mph) CM Percentile Speed (mph) 10 mph Pace Accr en s per Million Vehicles Miles (ACC1MVM) Average Daily Traffic (ADT) Recommended Speed Limit (mph) Justification and Recommendation 35 MPH ' 36 MPH 26 35 1 A58 7,223 30 MPH Residential density / frequency of driveways. Bike faculty / bike safety. 86 4th Street Highland Avenue to Palm Avenue 87 4th Street Palm Avenue to T, Avenue 35 MPH 38 MPH 29 - 38 0.480 _ 9,066 • 35 MPH Ro,and 85th percentile cooed down; no other reduction taken. 88 4th Street T Avenue to Euclid Avenuereduction 30 MPH 38 MPH 29 3$ 0.264 8,235 35 MPH Round 85th percentile spied down; no other taken. 89 4th Street Euclid Avenue to Clairmont Avenue 35 MPH 36 MPH 28 - 37 0.000 8,023 30 MPH Bike facility/ bike safely- 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 Bikeproximity to school f 91 8th Street Harbor Drive to I 5 35 MPH 36 MPH 27 - 36 0.575 9,150 30 MPH Bike facility 1 bike safety. 26 - 35 1.183 22,489 30 MPH Bike facility 1 bike safety. 92 8th Street 1-5 to National CiW Boulevard 35 MPH 37 MPH 30 MPH _ 27 MPH 17 - 26 1.220 14,205 i 25 MPH Round to nearest 5 mph increment of the 85th percentile speed. 93 8th Street National City Boulevard to D Avenue 94 8th Street 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, 35 MPH 3B MPH 29 38 0.929 14,099 35 MPH Round 85th percentile speed down; no other taken_ 95 8th Street Highland Avenue to L Avenuereduction 35 MPH 39 MPH 30 - 39 0.386 17,082 35 MPH Round 85th percentile speed down; no other reduction taken. 96 8th Street L Avenue to Palm Avenue 35 MPH 41 MPH _ 32 - 41 1.141 17,185 35 MPH Consistency with adjacen : segment. _ 97 8th Street Palm Avenue to Euclid Avenue Round 85th percentile speed down; no other reduction taken. 35 MPH 39 MPH 30 - 39 0.761 14,756 35 MPH 98 8th Street Euclid Avenue to Harbison Avenue 35 MPH 38 MPH 26-35 0.422 14,179 35 MPH Round 85th percentile speed down; no other reduction taken. 99 8th Street Harbison Avenue to Plaza Boulevard 100 Plaza Boulevard Coolidge Avenue to Hoover Avenue 30 MPH 30 MPH 21 - 30 2.985 2,959 25 MPH • Bide facility! bike safety. 101 it. Plaza Boulevard Hoover Avenue tc National City Boulevard 30 MPl-1 22 MPH 16 - 25 1.141 3,797 25 MPH Consistency with adjacent segment. 102 Plaza Boulevard National City Boulevard to 0 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 i 37 MPH 28 - 37 0.914 11,985 30 MPH Pedestrian safety / proxim'ty 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 ircrernent of the 85th ercentile speed. 105 Plaza Boulevard Palrn Avenue to I- 805 I 35 MPH I 39 MPH III 30 - 39 0.329 28,593 35 MPH Round 85th percentile speed down: no other reduction taken._ __._ 206 of 585 City of National City 2015/2037 Citywide Engineering and Traffic Survey 1 October 2017 Location Number Location Name 106 Limits Tabl Existing Speoi . Limit (mph) Plaza Boulevard 107 Plaza Boulevard 108 Plate Boulevard 1-805 to Euclid Avenue Euclid Avenue to Harbison Avenue Harbison Avenue to 8th Street 35 MPH 30 MPH 40 MPH 109 110 Paradise Valley Road 8th Street to Plaza Entrada 40 MPH Civic Center Drive Harbor Drive to National Clty Boulevard 30 MPH 111 16th Street 112 16th Street 113 114 115 Wilson Avenue to National City Boulevard National City 25 MPH Boulevard to D 35 MPH Avenue 16th Street D Avenue to 35 MPH Highland Avenue Highland Avenue 35 MPH 16th Street to L Avenue 16th Street 116 l 16th Street 117 16th Street 118 119 L Avenue to Palm Avenue Palm Avenue to Grove Street Grove Street to Euclid Avenue 35 MPH 35 MPH 35 MPH 16th Street Euclid Avenue to Lanoitan Avenue 35 MFH 16th Street Lanoitan Avenue to Harbison Avenue 1811 Street 35 MPH Wilson Avenue to National City Boulevard 30 �i1PH 18th Street 123 124 National City Boulevard to D Avenue 35 MPH Avenue to 35 MFH 35 MPH 35 MPH 18th Street Highland Avenue 18th Street Highland Avenue to L Avenue 18th Street L Avenue to Palm Avenue 125 18th Street Palm Avenue to Newell Street 35 MPH AA 3: Speed Survey Summary and Recommennatians rage 6 of tki - 85th Percentile Speed (mph) 10 mph Pace Acaiaen Million Vehicles Miles (ACC il1VM) `S"-- Average Daily Traffic (AM) --- Recommended Speed Limit (mph) Justification and Recommendation ' 37 MPH — 30 - 39 0.288 29,576 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 42 MPH 32 - 41 0.905 21,006 35 MPH Pedestrian safety/ proximity to school. 43 MPH 34 43 0.567 15,364 40 MPH Round 85th percentile s;3eed down; no other reduction taken. -- 45 MPH 38 - 47 0.136 25,498 40 MPH ._ 30 MPH i Consistency with adjacent segment. 33 MPH 25 - 34 0.614 5,896 Round 85th percentile speed down; no other reduction taken. MPH 23percentile 15 24 2 313 1,509 25 MPH Round to nearest 5 mph increment of the 85th speed. 35 MPH 25 - 34 1.101 5,907 6,890 30 MPH Pedestrian safety 1 proximity to school. 38 MPH 28 - 37 0.950 35 MPH Round 86th percentile speed down; no other reduction taken. 35 MPH 27 - 36 0.000 7,828 30 MPH Residential density 1 frequency of driveways. 35 MPH 26 - 35 0.498 8,818 30 MPH Residential density / frequency of driveways. 37 MPH 27 - 36 0.000 7,999 30 MPH Residential density !frequency of driveways. 34 MPH 25 - 34 0.482 6,362 30 MPH Residential density! frequency of driveways. 37 MPH 29 - 38 0.000 9,184 30 MPH Residential density 1 frequency of driveways. 36 MPH 28 - 37 0.655 8,386 30 MPH Residential density 1 frequency of driveways. 20 MPH 10 -19 1.778 3,917 25 MPH Pedestrian safety 1 proximity to school. 35 MPH 27 - 36 1.286 6,737 30 MPH Bike facility / bike safety. 33 MPH 25 - 34 0-270 8,101 30 MPH Round 85th percentile (peed down; no other reduction taken. 35 MPH 27 - 36 28 - 37 0.880 7,522 30 MPH Residential density !frequency of driveways. 37 MPH 1.407 9,320 30 MPH Residential density / frequency of driveways. 36 MPH 28 37 1.897 8,376 30 MPH Pedestrian safety / proximity to school. 207 of 585 City of National Clty 2015/2017 citywide Engineering and Traffic Survey I October 207,7 "abx, 2: 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 . cci:en s per Million Average Vehicles Miles Daily Traffic (ACC!MVM) (ADT) Recommended Speed Limit (mph) Justification and Recommendation 126 Newell Street to 18th Street Euclid Avenue 35 MPH 32 MPH 0.324 6,378 30 MPH Round to nearest 6 mph increment of the 85th peroentlle speed. 127 18th Street Euclid Avenue to Granger Avenue 35 MPH 34 MPH 25 34 0.$G6 7,666 30 MPH Round 85th percentile speed down; no other reduction taken. 128 Granger Avenue 18th Street to Rachael Avenue 35 N. PH 36 MPH 27 - 36 0.876 4,994 30 MPH Pedestrian safety / proximity to school. 129 Tidelands Avenue 19th Street to Cleveland Avenue 30 MPH i 34 MPH 23 - 32 0.000 3,685 30 MPH Round 85th percentile speed down; no other reduction taken. 130 Wilson Avenue to 22nd Street National City Boulevard 30 MPH • 29 MPH 18 - 27 0.970 1,812 25 MPH Ror,rnd 85th percentile speed down; no other reduction taken. 131 Bay Marina Drive Tidelands Avenue to Marina Way 30 MPH l 35 MPH i 26 - 35 . 0.399 5,599 30 MPH Cotsisten with adjacent segment j g 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 1-5 to Hoover Avenue 35 MPH �, 32 MPH 23 - 32 0.105 24,951 30 MPH ,Round to nearest 5 mph increment of the 85th percentile speed. 134 Hoover Avenue to Mile of Cars Way National City Boulevard 35 MPH 35 MPH 27 - 36 0.187 17,393 35 MPH Round to nearest 5 mph increment of the 85th percentile speed. 135 National City 241h Street 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 Hi blend 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 Hoover Avenue to 30th Street National City Boulevard 35 MPH 33 MPH 24 - 33 0.000 3,575 30 MPHreduc Round 85th percentile speed down; no other tlon taken. fl 139 30th Street National City Boulevard to D Avenue 35 MPH 37 MPH 29 - 38 0.000 30 MPH Bike facility 1 bike safety. 140 30th Street D Avenue to Hi Nand Avenue 30 MPH 37 MPH 25 - 34 1.083 10,061 30 MPH Pedestrian safety / proximity to school. 141 30th Street Highland Avenue to LAvenue 35 MPH 39 MPH 28 - 37 0.983 20,092 35 MPH Round 85th percentile speed down; no other reduction taken. 142 30th Street I_ Avenue to 2nd Avenue 40 MPH 40 MPH 25 - 34 0,569 22,808 35 MPH Consistency with adjacent segment 143 Sweetwater Road 2nd Avenue to !- 605lEuclid Avenue 35 MPH 38 MPH 30 - 39 0-843 22,341 Round 85th peroentile speed down; no other 35 MPH reduction taken. 208 of 585 City of National City 2016/2017 Citywide Engineering and TrafF.c Survey I October 2017 Table 3; Speed Survey Summary and Recommendations (Page 8 of 8) Location Number Location Name Limits Existing Speeed Limit (mph) 85th Percentile Speed (mph) 10 mph Pace Accidents per Mlllton Vehicles Miles (ACC/MVM) Average Daily Traffic (AOT) Recommended Speed Limit (mph) .� Justification and Recommendation 144 Sweetwater Road I-805/Euclid Avenue 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 percentile speed. 146 Sweetwater Road Plaza Bonita Road to Calmoor Street ; 45 MPH i 48 MPH 40 - 49 0.335 16,004 45 MPH Round 85th percentile speed down; 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 MPHper Round to nearest 5 mph increment of the 85th Round speed, 148 32nd Street Tidelands Avenue to Marina Way 25 ME -I 50 MPH 20 - 29 0.000 574 25 MPH Consistency with adjacent segment. 149 Valley Road Sweetwater Road to Calls 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 I 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. 209 of 585 City of National City 1016/2017 C'tywide Engineering and Traffic Survey I October 2017 Figure 5. Recommended Speed Limit Modifications Change In Speed Limit -1 D MPH - 5 MPH Na Change _-- +5MPH 210 of 585 211 of 585 ORDINANCE NO. 2017 — 2443 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 212 of 585 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 19, 2017 2 Ordinance No. 2017 - 2443 Speed Zones Designated 213 of 585 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 19, 2017 3 Ordinance No. 2017 - 2443 Speed Zones Designated 214 of 585 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 19, 2017 4 Ordinance No. 2017 - 2443 Speed Zones Designated 215 of 585 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 19, 2017 5 Ordinance No. 2017 - 2443 Speed Zones Designated 216 of 585 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 19th day of December, 2017. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney December 19, 2017 6 Ordinance No. 2017 - 2443 Speed Zones Designated 217 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 218 The following page(s) contain the backup material for Agenda Item: Public Hearing and Adoption of an Ordinance of the City Council of the City of National City Amending Title 18 of the National City Municipal Code by Amending Sections 18.24.050 (Mixed - Use Corridor and District zones), 18.25.020 (Industrial zones), 18.30. 218 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NC I ITEM TITLE: Public Hearing and Adoption of an Ordinance of the City Council of the City of National City Amending Title 18 of the National City Municipal Code by Amending Sections 18.24.050 (Mixed -Use Corridor and District zones), 18.25.020 (Industrial zones), 18.30.050 (Sale of alcoholic beverages and live entertainment), and 18.50.010 (Glossary) (Applicant City -Initiated Land Use Amendment) (Case File 2017-25 A)J PREPARED B. Martin Reeder, AICP '� DEPARTMENT: PHONE: i619-336-4313 I APPROVED BY. EXPLANATION: This amendment, which was initiated by the City Council in 2016, is intended to define and impose permitting limitations on breweries and tasting rooms. The initiation followed discussion with representatives of the local craft brewing industry who were having difficulty with City regulations. Traditional breweries are typically permitted in the industrial zones and restaurants with accessory brewing are generally permitted in commercial areas. Consumption of alcohol (tasting room) is currently subject to a CUP. In addition to conditions required by City Council Policy 707 related to alcohol licensing, CUP conditions traditionally apply to retail alcohol outlets and do not take into account craft breweries and similar uses. The changes were prepared and considered by the Planning Commission on November 20, 2017. The attached Background Repot describes the changes in detail. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: ENVIRONMENTAL REVIEW: Not a project per CEQA ORDINANCE: INTRODUCTION: FINAL ADOPTION: X STAFF RECOMMENDATION: Staff concurs with the Planning Commission's recommendation to adopt the amendments to Title 18. BOARD / COMMISSION RECOMMENDATION: Ole Planning Commission recommended approval of the Land Use Code amendment. Ayes: Baca, Flores, Garcia, Sendt, Quintero, Yamane Noes: DelaPaZ ATTACHMENTS: 1. Background Report 2. Findings 3. Proposed Code changes 4. Planning Commission Resolution 2017-26 (a) 5. Public Hearing Notice 6. Ordinance Finance MIS 219 of 585 BACKGROUND REPORT Staff Recommendation Staff generally supports the proposed amendments included in this staff report. However, some proposed amendments are not supported by staff, in which case substitute amendments are included and discussed in this staff report. Staff recommends that the City Council approve the amendments as suggested. This item is related to changes to Title 18 of the National City Municipal Code. A companion to this item discusses changes to City Council Policy 707. History The City Council initiated this amendment in 2016. The amendment is intended to define and impose permitting limitations on breweries and tasting rooms. The initiation followed discussion with representatives of the local craft brewing industry who were having difficulty with City regulations. While the City's regulations for alcohol sales are not considered as up-to-date as other jurisdictions with greater activity related to craft brewing, two craft brewing businesses have been permitted in the last two years. Novo Brazil received a Conditional Use Permit (CUP) in August of 2016 for a tasting room accessory to a public market and Embarcadero Brewing received a CUP in January of this year for a tasting room accessory to a brewing supply business. Traditional breweries are typically permitted in the industrial zones and restaurants with accessory brewing are generally permitted in commercial areas. Consumption of alcohol (tasting room) is subject to a CUP. The primary issue related to permitting tasting rooms is related to City Council Policy 707 related to alcohol licensing. Conditions in Policy 707 include requiring food sales and that alcohol sales not exceed sales of other products. These conditions traditionally applied to restaurants and did not take into account craft breweries and similar uses. Proposed Changes There are several changes to the Municipal Code proposed by industry advocates ("proponents"). They are generally related to definitions, allowed land uses, and locational requirements. These changes will have no effect in the Coastal Zone until the Local Coastal Plan is amended. Attachment 1 220 of 585 Glossary A. The proponents are suggesting modification (noted in boldl of one glossary definition as follows: 1. Medium manufacturing/processing. "Medium manufacturing/processing" includes uses that have moderately objectionable environmental influences by reason of the emission of odor, heat, smoke, noise, or vibration. Such uses include the manufacture of food products, drugs, pharmaceuticals and the like; wineries, distilleries, and large breweries (over 60,000 barrels per year); lumber yards and wood products; leather products; plastics; paper products and packaging material; floor coverings; stone, clay, glass, and concrete activities and products; manufacturing of textile products; metal fabrication and welding; vehicle manufacture, railroad equipment; and any other uses found by the city to be of the same general character of those listed here. Staff is supportive of this change, as it is consistent with industry and taxation standards (federal excise tax is tied to the 60,000 barrel per year number). However, a new definition would be more effective and should be inserted into the Glossary as follows: 1. Large breweries. "Large breweries" are those breweries producing more than 60,000 barrels a year. B. The proponents are also suggesting the addition of three new glossary definitions as follows: 1 Brewery. "Brewery" means an establishment which is licensed by the California Department of Alcoholic Beverage Control (ABC) under a Type 1 or Type 23 to manufacture and sell alcoholic beverages on the premises for on -site or off -site consumption. Minors are allowed on the premises (per ABC Type 1 and Type 23 license regulations). 2. Brewery tasting room. "Brewery tasting room" means an establishment which is licensed by the California Department of Alcoholic Beverage Control (ABC) under a Type 1 or Type 23 (Beer Manufacturer or Small Beer Manufacturer respectively) duplicate license to sell malt beverages that the licensee produces for on -site and off -site consumption; including sales of sealed containers (commonly known as growlers) for off -site consumption. Only beer produced by the master licensee may be sold and/or consumed at the location. Minors are allowed on the premises (per ABC Type 1 and Type 23 license regulations). 221 of 585 3. Small breweries. "Small breweries" are those breweries producing 60,000 barrels a year or less. Staff is supportive of the new glossary definitions, as they are consistent with industry standards and ABC licensing definitions. Allowable land uses C. Changes to allowed land uses in Industrial zones (Light Industrial, Medium Industrial, and Heavy Industrial) are also suggested. The first is a modification (noted in bold) of an existing land use (Medium manufacturing/processing) as follows: TABLE 18.25.020 Allowed Land Uses Industrial Zones Zone Land Use IL IM IH Medium p P P manufactul;d ocessing P Permitted Specific Use Regulations Staff is not supportive of allowing medium manufacturing/processing as an allowed use in the Light Industrial (IL) zone. These types of 'uses are generally not compatible with IL - zoned areas, which are closer to commercial areas that are comprised of assembly and lighter industrial uses. However, the intent of the requested change is to allow large breweries in the IL zone. Staff is amenable to this change if a CUP were to be required. Therefore, staff suggests the following change: Zone Land Use Specific Use Regulations IL IM IH Medium manufacturing/processing P P Large Breweries C C C P Permitted C Conditional Use Permit - Not permitted 222 of 585 D. Two additional land uses, which are proposed glossary items, have been proposed (noted in bold) to the allowed land uses in Industrial zones as follows: TABLE 18.25.020 Allowed Land Uses Industrial Zones Zone Land Use IL IM IH Small breweries P P P Brewery tasting room P P P� P Permitted Specific Use Regulations Staff is supportive of allowing small breweries to be permitted by right in the industrial zones. However, allowing tasting rooms by right would be counter to section 18.30.050 (Sale of alcoholic beverages and live entertainment), which requires a CUP for businesses involving consumption of alcohol on -site or sale of alcohol for off -site consumption. While allowing tasting rooms by right in only breweries would limit their number, having no CUP would reduce the ability of the City to regulate such activities (types of products, hours of operation, etc.). Therefore, staff would be supportive of allowing tasting rooms as a permitted use (by right) if they complied with City Council Policy 707, including the addition of additional standard operating conditions as needed for such uses. The policy would act as de facto conditions of approval for all tasting rooms. Staff suggests hours of operation be included that limit businesses to a last call be at 9:00 p.m. with alcohol consumption ending at 10:00 p.m. daily. Details of Policy 707 changes are discussed in the companion to this item. Staff suggests the following changes instead: Zone Land Use Specific Use Regulations IL IM IH Small breweries P P P Brewery tasting room FP P P Section 18.30.050 / City Council Policy 707 P Permitted C Conditional Use Permit 223 of 585 E. In addition to changes to the allowed land uses in Industrial zones, the proponent has also suggested changes (noted in bold) to the allowed land uses in mixed -use corridor and district zones as follows: TABLE 18.24.050 Allowed Land Uses Mixed -Use Zones Zone Land Use Specific Use Regulations MXC-1 MXC-2 MXD-1 MXD-2 Small breweries Brewery tasting room P P P P P P P P Section 18.30.050 f City Council Policy 707 P Permitted C Conditional Use Permit Staff is supportive of allowing small breweries by right in mixed -use zones. The reason is that they are limited in production (less than 60,000 barrels per year) and are essentially the same as a bakery, which has the same ingredients involved in their process. This standard is typical of other jurisdictions including the City of Chula Vista. In addition, craft breweries tend to be less intense than traditional breweries and are more prevalent in neighborhoods such as North Park in San Diego and other neighborhoods similar in density to National City. Therefore, allowing small breweries in mixed -use zones would be appropriate. On -site alcohol consumption is normally subject to a CUP. In addition, City Council Policy 707 states that alcohol for on -site consumption is only allowed with the purchase of food, although this requirement can be waived with Council approval. However, tasting rooms are generally family -friendly and less intensive that other on -site consumption business such as bars or restaurants. In addition, impacts are less due to the type of clientele, the higher cost of craft alcohol products, and the limited hours of operation. Furthermore, ABC licenses for tasting rooms allow minors to be present. It is also important to note, that while up to seven tasting rooms (including one as part of a restaurant) are permitted under a master brewery license, a violation on one is considered a violation on all. In the case of an ABC violation all tasting rooms would lose their ability to operate. Therefore, businesses tend to self -regulate more effectively than stand-alone on -site consumption businesses. F. The last change suggested by the proponent is to Section 18.30.050 - Sale of alcoholic beverages and live entertainment. The change is to Section D, which has 224 of 585 distance requirements between uses and from schools. This section currently reads as follows: D. Distance Requirements. Establishments where alcoholic beverages are sold for on or off -site consumption shall be located as follows: 1. Liquor stores, or other businesses where the principal use involves the sale of alcohol for off -site consumption, shall be: a. A minimum of six hundred sixty feet from any public school (kindergarten through twelfth grade) within the boundaries of the city; and b. A minimum of five hundred feet apart. 2. Bars and cocktail lounges or other establishments where the sale of alcoholic beverages for on -site consumption is the principal use, shall be: a. A minimum of six hundred sixty feet from any public school (kindergarten through twelfth grade) within the boundaries of the city; and b. No less than one thousand feet apart. 3. Restaurants where the sale of alcoholic beverages for on -site consumption is accessory or incidental to the principal use shall be a minimum of six hundred sixty feet from any public school (kindergarten through twelfth grade) within the boundaries of the city; except that this distance requirement shall not apply to restaurants (other than fast-food restaurants with drive -through service) where at least thirty percent of the floor area of the building is comprised of a seating area. 4. Private clubs or lodges, bowling alleys, theaters and other establishments where the sale of alcoholic beverages are accessory or incidental to the principal use shall be: a. A minimum of six hundred sixty feet from any public school (kindergarten through twelfth grade) within the boundaries of the city; and b. No closer than five hundred feet apart. This limitation shall not apply to restaurants. 225 of 585 5. No minimum distances from schools or other uses are required for grocery stores, convenience stores or other retail establishments involving the sale of alcohol for off -site consumption as an accessory use. The proponent of the amendment is suggesting that brewery tasting rooms also be exempt from distance requirements from schools, etc. Given that an ABC master license expressly allows minors on site, staff would be amenable to this change. Therefore, section D. 3 would be modified as follows: 3. Restaurants where the sale of alcoholic beverages for on -site consumption is accessory or incidental to the principal use shall be a minimum of six hundred sixty feet from any public school (kindergarten through twelfth grade) within the boundaries of the city; except that this distance requirement shall not apply to tasting rooms or restaurants (other than fast-food restaurants with drive -through service) where at least thirty percent of the floor area of the building is comprised of a seating area. A related change, which is being proposed by staff, is related to the definition of school in subsection D. 3. A recent approval for a tasting room in the downtown area was permitted, despite being close to a charter school. Approval was granted because it was accessory to a public market. However, ABC has stated that a Type 23 license is not a retail license; therefore, not subject to ABC distance requirements. In order to allow flexibility in locating tasting rooms and uses involving accessory alcohol consumption (restaurants, etc.), especially in the Downtown Specific Plan area, staff suggests further modifying (noted in bold) subsection 3 as follows: 3. Restaurants where the sale of alcoholic beverages for on -site consumption is accessory or incidental to the principal use shall be a minimum of six hundred sixty feet from any public school (kindergarten through twelfth grade) that is on property zoned as Institutional ill within the boundaries of the city; except that this distance requirement shall not apply to restaurants (other than fast-food restaurants with drive -through service) where at least thirty percent of the floor area of the building is comprised of a seating area. 226 of 585 In addition, a new subsection six would be added as follows: 6. Stand-alone tasting rooms shall be a minimum of six hundred sixty feet from any public school (kindergarten through twelfth grade) that is on property zoned as Institutional (11 within the boundaries of the city. The Institutional (I) zone is generally where all of the City's schools are located. Other "I" zone properties include Paradise Valley Hospital, the National School District offices, Olivewood Gardens, and the Apostolic Assembly of the Faith in Christ Jesus church. Analysis This amendment is intended to define and impose permitting limitations on breweries and tasting rooms. The reason for the request was that brewpubs, tasting rooms, and microbreweries did not fit with current alcoholic beverage policies and permitting regulations, which are geared towards traditional alcohol sale uses such as restaurants, markets, and bars. As supported or suggested by staff, all of the proposed changes are consistent with the previous Code sections and policies. While there would be minor changes in where tasting rooms and small breweries could be located, the changes would not be out of character with the General Plan land use designations. Findings for Approval There are two findings for approval, one related to General Plan consistency and one related to compliance with the California Environmental Quality Act (CEQA). General Plan conformance The requested amendments are consistent with the General Plan, as the Code sections already exist. The amendments are minor in nature and would make negligible changes to where tasting rooms and small breweries could be located. No increase in allowable densities, development intensity, or land use would result from the change. CEQA compliance This application is not considered to be a project under CEQA as any changes would either be in relation to ministerial projects, which are exempt from the application of CEQA per Section 21080 of the Public Resources Code (ministerial projects are already exempt), or to discretionary projects that have their own CEQA review. In almost all recent cases, on -sale alcohol sales or building remodels that include the sale or consumption of alcohol have been found to qualify for a CEQA exemption. 227 of 585 Finding for Denial There is also one finding for denial as follows: 1. That the requested amendments are inconsistent with existing alcohol permitting and policy, and would contribute to increased impacts related to overconsumption of alcohol. The reason for the denial finding is that additional opportunities for on -sale alcohol consumption could possibly lead to additional alcohol -related impacts, such as calls for service from the Police Department, over -consumption of alcohol, and other peripheral impacts. However, impacts from craft beer establishments such as tasting rooms are typically less than standard on -sale businesses. Reasons include the higher price of products, smaller serving sizes, and limited hours. Planning Commission The Planning Commission held public hearings on the proposed amendments at their meetings of October 16 and November 20, 2017. Seven advocates of the craft beer industry spoke in support of the changes. The Commission ultimately recommended approval to the City Council of the amendments, as suggested by staff in the staff report. Police Department In general, the Police Department (PD) utilizes a "wait and see" method with regard to new business trends. Rather than be a pioneer in attracting certain types of business, waiting to see if other jurisdictions experience any issues is sometimes preferable. However, PD is generally supportive of craft beer tasting rooms, but only if there are operating conditions, particularly with regard to time. PD is in favor of cessation of business activities by 10:00 p.m., as suggested by staff (last call at 9:00 p.m. and close by 10:00 p.m.). However, if operating hours are later, PD is not in support of such conditions and would rely on the current CUP process for guidance and permitting. Without operating conditions and standard hours of operation, PD has concerns over morphing, especially with the presence of live music. Discussion of Policy 707 changes, which are related to the Title 18 changes in this report are discussed at length in the staff report for the companion item. Summary The proposed amendments will allow flexibility in the locating, permitting, and operation of small breweries and/or tasting rooms. The added glossary definitions and Council policy changes will also make the City more welcoming to the expanding craft beer industry, of which the City Council and Planning Commission have shown support. 228 of 585 Options 1. Approve the amendments to the Land Use Code (LUC) and City Council Policy 707, as suggested by staff, based on the attached findings or findings to be determined by the City Council; or 2. Deny the amendments to the LUC based on the attached finding or findings to be determined by the City Council; or, 3. Continue the item to a specific date. 229 of 585 RECOMMENDED FINDINGS FOR APPROVAL 1. That the requested amendments are consistent with the General Plan, as the Code sections already exist, the amendments are minor in nature, and would make negligible changes to where tasting rooms and small breweries could be located. No increase in allowable densities, development intensity, or land use would result from the change. 2. That the proposed amendment has been reviewed to be in compliance with the California Environmental Quality Act (CEQA); the project is not considered a project under CEQA, as any changes would be in relation to ministerial projects, which are exempt from the application of CEQA per Section 21080 of the Public Resources Code, or separate discretionary actions that would qualify for an exemption from CEQA. RECOMMENDED FINDINGS FOR DENIAL 1. That the requested amendments are inconsistent with existing alcohol permitting and policy, and would contribute to increased impacts related to overconsumption of alcohol. Attachment 2 230 of 585 Proposed Code changes Proposed language 18.50 — Glossary Brewery. "Brewery" means an establishment which is licensed by the California Department of Alcoholic Beverage Control under a Type 1 or Type 23 to manufacture and sell alcoholic beverages on the premises for on -site or off -site consumption. Minors are allowed on the premises (per ABC Type 1 and Type 23 license regulations). Brewery tasting room. "Brewery tasting room" means an establishment which is licensed by the California Department of Alcoholic Beverage Control under a Type 1 or Type 23 (Beer Manufacturer or Small Beer Manufacturer respectively) duplicate license to sell malt beverages the licensee produces for on -site and off- site consumption; including sales of sealed containers (commonly known as growlers) for off -site consumption. Only beer produced by the master licensee may be sold and/or consumed at the location. Minors are allowed on the premises (per ABC Type 1 and Type 23 license regulations). Small breweries. "Small breweries" are those breweries producing 60,000 barrels a year or less. Large breweries. "Large breweries" are those breweries producing more than 60,000 barrels a year. Land Use TABLE 18.25.020 Allowed Land Uses Industrial Zones Zone Specific Use Regulations Small breweries P P P-1 Large Breweries r Brewery tasting room C C P P P Section 18.30.050 / City Council Policy 707 P Permitted C Conditional Use Permit Attachment 3 231 of 585 TABLE 18.24.050 Allowed Land Uses Mixed -Use Zones Land Use Zone [MXC1 MXC-2 1 Small P P P breweries Brewery tasting room FP P —1 Specific Use Regulations MXD-1 MXD-2 P P Section 18.30.050 / City Council Policy 707 P Permitted C Conditional Use Permit Section 18.30.050 - Sale of alcoholic beverages and live entertainment D. Distance Requirements. Establishments where alcoholic beverages are sold for on or off -site consumption shall be located as follows: 3. Restaurants where the sale of alcoholic beverages for on -site consumption is accessory or incidental to the principal use shall be a minimum of six hundred sixty feet from any public school (kindergarten through twelfth grade) that is on property zoned as Institutional (I) within the boundaries of the city; except that this distance requirement shall not apply to tasting rooms or restaurants (other than fast-food restaurants with drive -through service) where at least thirty percent of the floor area of the building is comprised of seating area. 232 of 585 RESOLUTION NO. 2017-26 (a) A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA, APPROVING A MUNICIPAL CODE AMENDMENT AMENDING SECTIONS 18.24 (MIXED -USE CORRIDOR AND DISTRICT ZONES), 18.25 (INDUSTRIAL ZONES), 18.30.050 (SALE OF ALCOHOLIC BEVERAGES AND LIVE ENTERTAINMENT), AND 18.50 (GLOSSARY) OF THE NATIONAL CITY MUNICIPAL CODE. APPLICANT: CITY -INITIATED. CASE FILE NO. 2017-25 A WHEREAS, pursuant to the terms and provisions of the Government Code of the State of California, proceedings were duly initiated for the amendment of the National City Municipal Code, per Chapter 18.12.140 (B); and, WHEREAS, the Planning Commission of the City of National City, California, considered said proposed amendment at duly advertised public hearings held on October 16 and November 20, 2017, at which time the Planning Commission considered evidence; and, WHEREAS, at said public hearings the Planning Commission considered the staff report provided for Case File No. 2017-25 A, which is maintained by the City and incorporated herein by reference; along with any other evidence presented at said hearing; and, WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law; and, WHEREAS, this action is taken in an effort to be compliant with applicable State and Federal law; and, WHEREAS, the action hereby taken is found to be essential for the preservation of the public health, safety and general welfare. NOW, THEREFORE, BE IT RESOLVED by the City Planning Commission of the City of National City, California, that the evidence presented to the Planning Commission at the public hearings held on October 16 and November 20, 2017, support the following findings: 1. That the requested amendments are consistent with the General Plan, as the Code sections already exist, the amendments are minor in nature, and would make negligible changes to where tasting rooms and small breweries could be located. No increase in allowable densities, development intensity, or land use would result from the change. Attachment 4 233 of 585 2. That the proposed amendment has been reviewed to be in compliance with the California Environmental Quality Act (CEQA); the project is not considered a project under CEQA, as any changes would be in relation to ministerial projects, which are exempt from the application of CEQA per Section 21080 of the Public Resources Code, or separate discretionary actions that would qualify for an exemption from CEQA. BE IT FURTHER RESOLVED that copies of this Resolution be transmitted forthwith to the applicant and to the City Council. CERTIFICATION: This certifies that the Resolution was adopted by the Planning Commission at their meeting of November 20, 2017, by the following vote: AYES: Quintero, Baca, Yamane, Sendt, Garcia, Flores NAYS: Dela Paz ABSENT: None. ABSTAIN: None. CHAIRPERSON 234 of 585 CITY OF NATIONAL CITY Office of the City Clerk 1243 National City Blvd., National City, California 91950 619-336-4228 phone / 619-336-4229 fax Michael R. Dalla, CMC - City Clerk NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of National City will hold a Public Hearing after the hour of 6:00 p.m., Tuesday, December 19, 2017, in the City Council Chambers, Civic Center, 1243 National City Blvd., National City, CA., to consider adopting: AN ORDINANCE AMENDING TITLE 18 (ZONING) SECTIONS 18.24 (MIXED -USE CORRIDOR AND DISTRICT ZONES), 18.25 (INDUSTRIAL ZONES), 18.30.050 (SALE OF ALCOHOLIC BEVERAGES AND LIVE ENTERTAINMENT), AND 18.50 (GLOSSARY) OF THE NATIONAL CITY MUNICIPAL CODE This amendment is intended to define and impose permitting limitations on breweries and tasting rooms. The Planning Commission conducted a public hearing at their meeting of November 20, 2017 and voted 6-1 to recommend adoption of the Code Amendment. Anyone interested in this matter may appear at the above time and place and be heard. If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing described in this notice, or in written correspondence delivered to the undersigned, or to the City Council of the City of National City at, or prior to, the Public Hearing. December 6, 2017 Attachment 5 ,t/U Michael R. Dalla, CMC City Clerk 235 of 585 ORDINANCE NO. 2017 — 2444 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING TITLE 18 OF THE NATIONAL CITY MUNICIPAL CODE BY AMENDING SECTIONS 18.24.050 (MIXED -USE CORRIDOR AND DISTRICT ZONES), 18.25.020 (INDUSTRIAL ZONES), 18.30.050 (SALE OF ALCOHOLIC BEVERAGES AND LIVE ENTERTAINMENT), AND 18.50.010 (GLOSSARY) WHEREAS, pursuant to the terms and provisions of the California Government Code, proceedings were duly initiated for the amendment of the National City Municipal Code (NCMC); and WHEREAS, on October 16 and November 20, 2017, noticed public hearings were held by the Planning Commission, and all persons interested were given the opportunity to appear and be heard before the National City Planning Commission; and WHEREAS, the Planning Commission regularly and duly certified its report to the City Council of National City and has recommended approval of amending NCMC Title 18: and WHEREAS, pursuant to a published 10-day notice of a public hearing for the adoption of said ordinance was given in accordance with law, whereafter a public hearing was held by the City Council on December 19, 2017, and at said public hearing, all persons interested were given the opportunity to appear and be heard before the City Council; and NOW, THEREFORE, the City Council does ordain as follows: Section 1. All protests, if any, against said amendment to the Municipal Code, and each of them being first heard and considered, are hereby are denied and overruled. Section 2. That Section 18.24.050 of the National City Municipal Code is amended to read as follows: 18.24.050 Allowed land uses and permit requirements. A. Purpose. This section identifies permitted uses within the mixed -use zones. B. Permitted Land Uses. Land uses permitted in the mixed -use zones shall be as specified in Table 18.24.050 (Allowed Land Uses - Mixed -Use Zones). Table 18.24.050 Allowed Land Uses Mixed -Use Zones Land Use Small breweries Zone MXC-1 MXC-2 MXD-1 MXD-2 P P P Brewery P tasting room P P P P Specific Use Regulations P Permitted Section 18.30.050 / City Council Policy 707 236 of 585 Section 3. That Section 18.25.020 of the National City Municipal Code is amended to read as follows: 18.25.020 Allowed land uses and permit requirements. Table 18.25.020 identifies the uses of land allowed in each industrial zone. Table 18.25.020 Allowed Land Uses Industrial Zones Land Use Zone IL IM IH Small breweries P P 7 Large Breweries C C Brewery tasting room P P P C Specific Use Regulations P Section 18.30.050 / City Council Policy 707 P Permitted C Conditional Use Permit Section 4. That Section 18.30.050 (D) (3) of the National City Municipal Code is amended to read as follows: 18.30.050 Sale of alcoholic beverages and live entertainment. D. Distance Requirements. Establishments where alcoholic beverages are sold for on or off -site consumption shall be located as follows: 3. Restaurants where the sale of alcoholic beverages for on -site consumption is accessory or incidental to the principal use shall be a minimum of six hundred sixty feet from any public school (kindergarten through twelfth grade) that is on property zoned as Institutional (I) within the boundaries of the city; except that this distance requirement shall not apply to tasting rooms or restaurants (other than fast-food restaurants with drive -through service) where at least thirty percent Section 5. That Section 18.50.010 of the National City Municipal Code is amended to add the definitions of "Brewery", "Brewery tasting room", "Small brewery", and "Large brewery" as follows: 18.50.010 Glossary. Brewery. "Brewery" means an establishment which is licensed by the California Department of Alcoholic Beverage Control under a Type 1 or Type 23 to manufacture and sell alcoholic beverages on the premises for on -site or off -site consumption. Minors are allowed on the premises (per ABC Type 1 and Type 23 license regulations). Brewery tasting room. "Brewery tasting room" means an establishment which is licensed by the California Department of Alcoholic Beverage Control under a Type 1 or Type 23 (Beer Manufacturer or Small Beer Manufacturer respectively) duplicate license to sell malt beverages the licensee produces for on -site and off -site consumption; including sales of sealed containers (commonly known as growlers) for off -site consumption. Only beer produced by the master licensee may be sold and/or consumed at the location. Minors are allowed on the premises (per ABC Type 1 and Type 23 license regulations). Ordinance No. 2017-2444 2 December 19, 2017 Amending NCMC Title 18 237 of 585 Small breweries. "Small breweries" are those breweries producing 60,000 barrels a year or less. Large breweries. "Large breweries" are those breweries producing more than 60,000 barrels a year. PASSED and ADOPTED this 19' day of December, 2017. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ordinance No. 2017-2444 3 December 19, 2017 Ron Morrison, Mayor Amending NCMC Title 18 238 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 239 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City amending City Council Policy No. 707, entitled Alcohol Beverage Licensing Application Review Process and Alcohol Conditional Use Permit Standards, related to craft beer tasting room standards. (A 239 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City amending City Council Policy No. 707, entitled Alcohol Beverage Licensing Application Review Process and Alcohol Conditional Use Permit Standards, related to craft beer tasting room standards. (Applicant City -Initiated Land Use Amendment) (Case File 2017-25 A)I PREPARED BY: Martin Reeder, AICP C DEPARTMENT: IPI PHONE: 1619-336-4313 I APPROVED BY: EXPLANATION: Traditional breweries are typically permitted in the industrial zones and restaurants with accessory brewing are generally permitted in commercial areas. Consumption of alcohol (tasting room) is subject to a CUP. The primary issue related to permitting tasting rooms is related to City Council Policy 707 related to alcohol licensing. Conditions in Policy 707 include requiring food sales and that alcohol sales not exceed sales of other products. These conditions traditionally applied to restaurants and did not take into account craft breweries and similar uses. The changes were prepared and considered by the Planning Commission on November 20, 2017. The attached Background Repot describes the changes in detail. FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: Not a project per CEQA ORDINANCE: INTRODUCTION: 1 FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Staff concurs with the Planning Commission's recommendation to adopt the changes City Council Policy 707. BOARD / COMMISSION RECOMMENDATION: The Planning Commission recommended approval of the changes to City Council Policy 707. Ayes: Baca, Flores, Garcia, Sendt, Quintero, Yamane Noes: DelaP0 ATTACHMENTS: 1. Background Report 2. City Council Policy 707 3. Proposed Policy changes 4. Resolution 240 of 585 BACKGROUND REPORT Staff Recommendation Staff supports the proposed policy changes included in this staff report. Staff recommends that the City Council approve the amendments as suggested. This item is related to changes to City Council Policy 707. A companion to this item discusses changes to Title 18 of the National City Municipal Code. History Traditional breweries are typically permitted in the industrial zones and restaurants with accessory brewing are generally permitted in commercial areas. Consumption of alcohol (tasting room) is subject to a CUP. The primary issue related to permitting tasting rooms is related to City Council Policy 707 related to alcohol licensing. Conditions in Policy 707 include requiring food sales and that alcohol sales not exceed sales of other products. These conditions traditionally applied to restaurants and did not take into account craft breweries and similar uses. A companion to this item is proposing changes to Title 18 of the Municipal Code, including allowing brewery tasting rooms by right in the Industrial and Mixed -Use zones. Staff is supportive allowing tasting rooms as a permitted use (by right) if they complied with City Council Policy 707, including the addition of additional standard operating conditions as needed for such uses. The policy would act as de facto conditions of approval for all tasting rooms. Staff suggests hours of operation be included that limit businesses to a last call be at 9:00 p.m. with alcohol consumption ending at 10:00 p.m. daily. City Council Policy 707 states that alcohol for on -site consumption is only allowed with the purchase of food, although this requirement can be waived with Council approval through the CUP process. However, tasting rooms are generally family -friendly and less intensive that other on -site consumption business such as bars or restaurants. In addition, impacts are less due to the type of clientele, the higher cost of craft alcohol products, and the limited hours of operation. Furthermore, ABC licenses for tasting rooms allow minors to be present. Attachment 1 241 of 585 Proposed Changes The proponent is asking for the term "tasting room" to be added to some of the policies that state "on -sale" or "off -sale" (see attached City Council Policy 707) policies 8, 11, 13, and 16 in particular. However, there is no need to make these changes, as a tasting room is an on -sale establishment and subject to the same policies. Where there is an issue related to tasting rooms having to comply with on -sale policies is with numbers 14 and 15 as follows: 14. The sale of alcohol shall not exceed the sale of food. With the annual renewal of the City business license, the business proprietor shall submit a statement clearly indicating total alcoholic beverage sales and total food sales. Said statement shall be subject to audit and verification by employees of the City, who are authorized to examine, audit and inspect such books and records of the license, as may be necessary in their judgment to verify that the sale of alcohol does not exceed the sale of food. All information obtained by an investigation of records shall remain confidential. 15. Alcohol shall be available only in conjunction with the purchase of food. Two recent CUP approvals for tasting rooms were granted exceptions from these policies; therefore, it would be reasonable for the policies to not apply to tasting rooms. Therefore, staff is supportive of a new policy as follows: 17. The requirements that alcohol be available only with the purchase of food and that alcohol sales not exceed food sales shall not apply to tasting rooms. In addition to these changes, the proponent is also requesting that off -sale products be available at tasting rooms. Sales of sealed containers (commonly known as growlers) for off -site consumption is permitted per ABC Type 23 license regulations. However, only beer produced by the master licensee under a Type 23 (small beer manufacturer) license may be sold and/or consumed at a licensed location. This allowance was made for the Novo Brazil tasting room downtown; therefore, staff is supportive of a new policy as follows: 18. Sales of sealed containers (commonly known as growlers) for off -site consumption of the beer produced by the master may be sold and/or consumed at this location. 242 of 585 Planning Commission While changes to City Council Policies are under the purview of the City Council, staff asked the Planning Commission to make a recommendation on the proposed changes. The Planning Commission held public hearings on the companion Code amendments at their meetings of October 16 and November 20, 2017, which included discussion of the proposed changes to Policy 707. Seven advocates of the craft beer industry spoke in support of the changes and requested that any new policies related to tasting rooms be applied retroactively to both Novo Brazil and Embarcadero Brewing Co. (both tasting rooms that were approved through the current CUP process in the last two years). The intention was for the new regulations to supersede the previously -approved CUPs. In addition, the proponent requested that tasting rooms also include winemakers and craft distilleries The Commission ultimately recommended approval to the City Council of the policy changes, including the retroactive application of new standards to the two existing businesses with CUPs, and including winemakers and craft distilleries in the definition of tasting room. With regard to the two previously -approved businesses qualifying retroactively for any new policy and that their CUP be nullified, staff is not supportive of this request. This type of request is not common and has potential ramifications not anticipated at this time. It should be noted that both businesses are already subject to the conditions contained in Policy 707. In addition, Emarcadero has approved hours of operation from 11:00 a.m. to 9:00 p.m. and Novo Brazil from 12:00 p.m. to 10 p.m. With regard to including winemakers and craft distilleries, staff is of the opinion that the focus should remain on craft brewing businesses at this time. All discussion thus far has been on craft beer; including wine and distilled spirits will require additional research and consideration at a future time. Police Department PD is generally supportive of craft beer tasting rooms, but only if there are operating conditions, particularly with regard to time. PD is in favor of cessation of business activities by 10:00 p.m., as suggested by staff (last call at 9:00 p.m. and close by 10:00 p.m.). However, if operating hours are later, PD is not in support of such conditions and would rely on the current CUP process for guidance and permitting. Without operating conditions and standard hours of operation, PD has concerns over morphing, especially with the presence of live music. In order to remedy some of these concerns staff suggests that the process include PD providing a Risk Assessment, consistent with current alcohol CUPs. This would allow 243 of 585 review on a case -by -case basis and for potential risk to be assessed. PD suggests that in the case of more than 15 points the subject business would be required to obtain a CUP as normal. PD is also in favor of requiring live music to obtain a CUP, as is currently required. Additional City Council Policy 707 considerations In order to capture the recommended hours of operation and the need for PD to provide a Risk Assessment for new tasting rooms, staff recommends adding two more policies to City Council Policy 707 as follows: 19. Hours of operation of tasting rooms shall be limited to between 10:00 a.m. to 10:00 p.m. with last call being at 9:00 p.m. 20. With the submittal of a business license for a tasting room, the Police Department shall provide an ABC Risk Assessment for each business applicant that indicates whether the business is considered a low, medium, or high risk. In the event that a risk assessment for the business allocates or more than 15 points, no business license shall be issued without the issuance of a Conditional Use Permit. Summary The proposed policy changes will allow flexibility in the operation of tasting rooms. The Council policy changes will also make the City more welcoming to the expanding craft beer industry, of which the City Council and Planning Commission have shown support. Options 1. Approve the changes to City Council Policy 707, as suggested by staff (new policies 17 through 20)*; or 2. Deny the changes to City Council Policy 707; or, 3. Continue the item to a specific date. * If the changes are intended to also apply to winemakers and craft distillers, the motion to approve should state as such. In addition, the motion should also state if the policy applies retroactively and replaces the CUP for Novo Brazil and Embarcadero Brewing Company. 244 of 585 CITY COUNCIL POLICY TITLE: Alcohol Beverage License Application Review Process and Alcohol Conditional Use Permit Standards. POLICY NUMBER: 707 ADOPTED: November 12, 1991 AMENDED OR REVISED: August 16, 2011 PURPOSE/BACKGROUND: To streamline the process of alcohol license application review to ensure timely staff responses and/or protests to the Department of Alcoholic Beverage Control regarding these applications. The City Municipal Code requires Conditional Use Permits for the sale of alcohol. Such land use regulation is designed to ensure that the health, safety and welfare of the community do not become negatively impacted. In order to minimize any potential adverse effects of alcohol sales for both on and off -site consumption, including public drunkenness, disorderly conduct,illegal sales or domestic violence, the City adopts conditions of approvals and enact policies designed to protect the public from such effects. The following sets forth the City Council's policy on the applicable alcohol standards for Conditional Use Permit applications for both on and off -sale alcohol sales, as well as the Department of Alcoholic Beverage Control application notification requirements. POLICY: The Department of Alcoholic Beverage Control (ABC) sends copies of all alcoholic beverage license applications to the Police Department. The City has thirty days from the date of the ABC mailing to provide comments to the ABC. If no protests are received within that time period, the ABC issues the license. The Police Department is responsible for ensuring that an appropriate Conditional Use Permit (CUP) exists for the applicant business. If such a CUP exists, the copy of the application is simply filed by the Police Department in the existing file with the notation that there were no objections to the issuance of the license. If it is a new (in the case of an "original" license application) or expanding business or one seeking a license to effect a premises transfer, and no CUP exists, the Police Department is responsible for sending a letter to the ABC protesting the issuance of the license until a CUP is issued by the City. Whenever such a protest letter is sent to the ABC, that agency notifies the applicant that they must begin the process of obtaining a CUP with the City's City of National City — City Council Policy 707 Attachment 2 1 245 of 585 Planning Department and that the issuance of the alcoholic beverage license will be delayed until such time as the protest is withdrawn. Once a CUP has been issued, the Planning Department notifies the Police Department of that issuance and it is then the responsibility of the Police Department to notify the ABC that the protest is withdrawn. The CUP application, approval and issuance process is such that it provides all the checks, balances and controls necessary to ensure that businesses seeking alcoholic beverage licenses are in compliance with local standards. These conditions of approval shall apply to all new Conditional Use Permits (CUP's) for the sale of alcohol for on and/or off -site consumption and modifications of existing CUPs for such sales as specified by the preceding parenthetical references with each condition. These references specify to which type of alcohol CUP being applied for the conditions would apply to — on -sale (restaurant, bar, etc.) or off -sale (market, grocery store, etc.). Regulation of these conditions and allowances shall be enforced through the Conditional Use Permit process, specifically conditions of approval to read as follows: 1. (off -sale alcohol) The sale of beer or malt beverages in quantities of quarts, 22 ounce, 32 ounce, 40 ounce, or similar size containers is prohibited. 2. (off -sale alcohol) No beer products shall be sold of less than manufacturer's pre -packaged three -pack quantities of 24 ounce cans per sale. There shall be no sale of single cans or bottles. 3. (off -sale alcohol) No sale of wine or distilled spirits shall be sold in containers of less than 750 milliliters. The sale of wine with an alcoholic content greater than 15% by volume is prohibited. 4. (off -sale alcohol) Flavored malt beverages, also known as premium malt beverages and flavored malt coolers, and sometimes commonly referred to as wine coolers, may be sold only by four -pack or other manufacturer's pre- packaged multi -unit quantities. 5. (off -sale alcohol) The consumption of alcoholic beverages is prohibited on the subject premises, and on all parking Tots and outbuildings and any property or adjacent property under the control of the applicant. 6. (off -sale alcohol) All cups and containers shall be sold at or above prevailing prices and in their original multi -container packages of no fewer than 12, and no cups and containers shall be given free of charge. 7. (off -sale alcohol) Ice may be sold only at or about prevailing prices in the area and in quantities of not less than three pounds per sale. Ice shall not be provided free of charge. 8. (off -sale alcohol) The display of alcoholic beverages shall be limited to an area in substantial conformance with Exhibit _, Case File No. _, dated _. City of National City — City Council Policy 707 246 of 585 9. (off -sale alcohol) Permittee shall post signs on the exterior building walls in compliance with Chapter 10.30.070 of the National City Municipal Code. Additionally, the permittee shall post signs, to be approved by the Planning Department, at each entrance to the applicant's premises and parking lot, prohibiting loitering and consumption of alcohol on the premises and adjacent property under his control. Said signs shall not be less than 17 by 22 inches in size, with lettering not Tess than one inch in height. The signs shall read as follows: a. "No open alcoholic beverage containers are allowed on these premises." b. "No loitering is allowed." 10. (off -sale alcohol) Containers of distilled spirits may not be stored on the premises, after being sold to patrons, for the purpose of later consumption. 11. (off -sale alcohol) Exterior advertising and signs of all types, promoting or indicating the availability of alcoholic beverages, including advertising/signs directed to the exterior from within, are prohibited. Interior displays of alcoholic beverages and signs, which are clearly visible to the exterior, shall constitute a violation of this condition. 12. (off -sale alcohol) The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of all other commodities during the same period. The applicant shall at all times keep records which reflect separately the gross sales of alcoholic beverages and the gross sales of all other items. Said records shall be kept no less frequently than on a quarterly basis and shall be made available to the City Finance Department and any Peace Officer of the California Department of Alcoholic Beverage Control upon demand. 13. (on and off -sale alcohol) All sellers and servers of alcohol shall receive Responsible Beverage Service and Sales (RBSS) training, including all owners, and managers. The RBSS training must be certified by the Department of Alcoholic Beverage Control (ABC). Proof of completion of an approved RBSS program must be provided prior to issuance of a city business license. As part of the RBSS training, the permittee shall make available a domestic violence training session as provided by the Institute of Public Strategies. 14. (on -sale alcohol) The sale of alcohol shall not exceed the sale of food. With the annual renewal of the City business license, the business proprietor shall submit a statement clearly indicating total alcoholic beverage sales and total food sales. Said statement shall be subject to audit and verification by employees of the City, who are authorized to examine, audit and inspect such books and records of the license, as may be necessary in their judgment to verify that the sale of alcohol does not exceed the sale of food. All information obtained by an investigation of records shall remain confidential. 15. (on -sale alcohol) Alcohol shall be available only in conjunction with the purchase of food. City of National City — City Council Policy 707 247 of 585 16. (on -sale alcohol with patio) Permittee shall post signs in the patio dining area, including all exits to outdoor seating areas, indicating that alcoholic beverages must be consumed inside the restaurant or patio area and may not be taken off -premises. The sale of three -packs of 24-oz cans of beer shall apply retroactively to all existing off -sale CUPs where a condition exists limiting sales to no less than six-pack quantities. However, businesses wishing to avail themselves of this modification must conform with all regulations of the Department of Alcoholic Beverage Control (ABC). The Council may, at its sole discretion, choose to waive or modify any of the above conditions. City of National City — City Council Policy 707 4 248 of 585 Proposed changes to City Council Policy 707 17. The requirements that alcohol be available only with the purchase of food and that alcohol sales not exceed food sales shall not apply to tasting rooms. 18. Sales of sealed containers (commonly known as growlers) for off -site consumption of the beer produced by the master licensee may be sold and/or consumed at this location. Attachment 3 249 of 585 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING CITY COUNCIL POLICY NO. 707, ENTITLED ALCOHOL BEVERAGE LICENSING APPLICATION REVIEW PROCESS AND ALCOHOL CONDITIONAL USE PERMIT STANDARDS, RELATED TO CRAFT BEER TASTING ROOM STANDARDS BE IT RESOLVED by the City Council of the City of National City that City Council Policy No. 707, entitled "Alcohol Beverage Licensing Application Review Process and Alcohol Conditional Use Permit Standards", related to craft beer tasting room standards, is amended as described in the Policy. PASSED and ADOPTED this 19t" day of December, 2017. ATTEST: Michael R. Daila, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ron Morrison, Mayor 250 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 251 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 an Agreement by and between the City of National City and National City Living History Farm Preserve approving relocation of a Victorian Home from 1904 "F" Avenue 251 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO. ITEM TITLE: lResolution of the City Council of the City of National City authorizing the Mayor to execute an Agreement by and between the City of National City and National City Living History Farm Preserve approving relocation of a Victorian Home from 1904 "F" Avenue to the Stein Farm property located at 1808 "F" Avenue in National City, subject to applicable City permits. PREPARED BY: Gregory Rose DEPARTMENT Housing & Economic Development Property Agent PHONE: 619 336-4266 EXPLANATION: (Please see attached background report). FINANCIAL STATEMENT: ACCOUNT NO. APPROVED APPROVED: APPROVED. MIS Finance See background report for financial statement. ENVIRONMENTAL REVIEW: The Agreement is not considered a project as defined by the California Environmental Quality Act (CEQA), and is therefore not sut to CEQA. ORDINANCE: INTRODUCTION: I FINAL ADOPTION: P1 STAFF RECOMMENDATION: Stein Farm will present and is asking for City Council approval to move the Victorian House onto City owned property. Staff recommends adoption of the resolution executing the Agreement for the relocation of the house. BOARD 1 COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. [Background Report 2. Proposal from Stein Farm 3. Agreement 4. Resolution 252 of 585 Attachment No. 1 Background Report The National City Living History Farm Preserve ("Stein Farm") approached the City with a proposal to relocate a Victorian home onto the Stein Farm property. The home is located at 1904 F Avenue, just south of the Stein Farm property, and recently sold to a developer that intended to demolish the 1880's era Queen Ann Victorian home to make way for new construction. The developer has agreed to donate the home to Stein Farm. The Stein Farm is seeking approval from the City to move the house and Stein Farm has proposed to obtain all necessary permits to relocate the home. They agree to restore the home and obtain an occupancy permit within six months of the move. Stein Farm will be responsible for all utility costs for the house. Once the house is moved onto City property and an Occupancy permit is obtained, it will be governed by the Maintenance and Operating Agreement for the Stein Farm. An Agreement is attached which lays out the conditions of the move, including but not limited to the City's issuance of all applicable permits before the move begins. Financial Statement The National City Living History Farm Preserve is not asking the City for any financial assistance. In their Estimate of Costs and Proposed Funding for Project, they are assuming the City will waive permit Fees totaling $2,125.00. However the City is not providing a waiver of fees through the attached agreement. Furthermore, the agreement states the City will not provide any financial assistance for the relocation project. Stein Farm intends to get all the materials, labor, contractor oversight, historic guidance for restoration, the relocation of the home, and architectural drawings donated or they will pay for it themselves. The Stein Farm has provided an estimate of costs and how they intend to fund the relocation in their proposal. 253 of 585 oe Stein Fancily Fad 1808 F Avenue National City, Ca, 91950 619.477.4113 F' a %'"infarn yrarrn or g r'B: The Stein Family Farm October 30, 2017 Honorable Mayor and City Council: Attachment No. 2 I am submitting this letter and documentation with regards to the 1880's Queen Ann Victorian Home that sits to the immediate south of the Stein Family Farm property at 1904 F Avenue. This approximately 1,453 square foot home was moved to its present location by Charles Stein when he owned his original 10 acres and has remained at this location since approximately the early 1900's. A twin to this house originally existed, but was lost to a weekend, unpermitted demolition back in 1982. The house, although bid on by several young couples wanting to raise their children here in our City, was recently purchased by a company who wants to demolish it and unfortunately allowed a Chula Vista Swat operation to take place in it last month where in the existing windows were all broken. However, other than that, the home remains in tact with original hardwood floors, several original doors, moldings and picture rails on the inside and Victorian details on the outside other items are easily replaced. There had been a fire in the upstairs front bedroom when the house was a rental and inspection shows only a couple floor boards in need of replacement along with a small ceiling patch. The Stein Family Farm Board is proposing to have the home moved to the south end of the Stein Farm property, just across the fence line from where it is presently located in order to preserve one of our few remaining small Victorian structures. We have spoken with the developers and expressed our interest and discussed the use of their demolition fees to move the home rather than demolish it to which they seemed amenable. We have also discussed that the Save Our Heritage Organization in San Diego is looking into providing a tax credit to the developer for their donation of the home. City staff has been contacted and a meeting held to determine how to go about doing something like this and quickly getting our ducks in a row (farm humor) and we are presently moving forward. We are not asking for City funding and are proposing the costs involved in the project to be covered by our organization and those who support us including licensed contractor oversight of the project, labor, material supplies, historic guidance for restoration, architectural and structural drawings etc., and are working on project estimates at the moment. The proposed use would be for a gift shop/class room for teachers -students and possible upstairs rental in the future to help support the continued running of the farm. Our estimated project timeframe is 3-6 months. The Stein Family Farm Board is requesting your support of this project wherein we are proposing the saving of a National City Historic Home. I am including photos for your review as well as a plot plan to assist you in visualizing our proposal and would be happy to answer any questions you may have. Sincerely, CIANACQ/5/40,---- Anne Peoples Founder/President National City Living History Farm Preserve, Inc. DBA: The Stein Family Farm 254 of 585 Attachment No. 2 Estimated Costs Proposed Funding for Project Permit Fees — SDG&E — Water - Sewer — Structural Engineering: Plans (foundation) CAD Drawing of House: House move: Foundation L&M: Paint: Interior improvements: To be waived by City No cost for connection, we have to trench to pole and provide wire and meter. Meter & wiring provided by Christmas in July — donation Water is currently available on the property. Pipes provided by Christmas in July - donation City to open line for our connection. We will trench and pipe to street. Sewer pipes provided by Christmas in July — Donation. LAMAR Engineering, $1,000 Paid by NCLHFP ($5,000 value) Specialty Design, $750 Paid by NCLHFP ($5,000 value) Superior House Movers, $15,000 to be covered by Kire Demo funds ($45,000-$55,000 value) JBW Enterprises, $10,000 NCLHFP has funding to cover, however is seeking donations of materials and labor from others to assist Sherwin Williams has committed to provide paint for both interior and exterior - donation Windows, light fixtures, outlet covers, wall patch, floor repair and refinishing, historic doors, missing moldings etc. currently salvaging — donations. Labor — donated, NCLHFP, So. Bay Marina Kiwanis Club, SOHO, Sweetwater Kiwanis Key Club, etc. 255 of 585 1-• RIME in • cA. ooctit OFFEANS Qa. irtntfil Attachment No. 2 •• : :. • 5: • ".::V•ii•ir e•- 4 ". .i0V.,7 71. ; ' We trmeticirP te furnish The materials and perform the labor necessary for the compact/ 0 pr\ 47-sob 1-e3ii MILF "Fh. Ne- Ali 11)14 ggitalOpil fJp:asrsti4Iijed::: **Moab: , . cornPlete;4 Mintier icrtheiuiti0 i Dollar's j-- K- yelifttpaymen • , edeP101101).4s,.)b- • foji • ;on gVAA9, CgitfulltMfau.- ‘41,ig vi111 be tatiiitNteefx sleen vOtion'ilreei, wit 01 beeome ittkiet cbmw Respeptfull *. • • end *yr /41:00r.09048 pintIneept epee *ill*, submitted Aet*.if VU' NufilLL rsiet.42 Per 4.4 , pre_ ,J,ay,beyelh e 1.0111..,--"AamiLkaiLW MEI Olts xes.,,,,=.1t,tpf,ttil.K4f.iiiteirstemeUPAVamigis;. ACCEPTANCE ORPOOP i:SAt The abovitippokmeogeeperkei epttporlditions aro satistactoryanti arelulrebiadeepted:You are' titherizedan dolhemoricas'sceoffiedA?aymentsmillibe madam _ obtlititid-above 1197953 j • JO'accordince.vvi th dralifingt*ifyspecifieittip- istibiniittggiRato Woikand .• 7"1,49,00 vidIE:1‘ • • Signature 256 of 585 A r Attachment No. 2 August 30, 2017 Stephan Gaspar KirE Builders, Inc. 10625 Scripps Ranch Blvd., Ste. F San Diego, CA 92131 C YOUNG . ASSOCIATES 1042 Skylark Drive La Jolla, CA 92037 Tel.: (858) 454-8885 Re: Notice of Completion -Asbestos Abatement-1904 F Ave, National City, California Mr. Gaspar, In accordance with our Change Order authorization of July 17, 2017, please be advised that asbestos containing material (ACM/material containing more than one percent [>1%] asbestos by volume) previously identified in the survey report at the subject structure has been formally abated, and the Lead -based paint (LBP/painted material containing equal to or greater than 0.5% by weight) identified in the survey report has been stabilized, effective August 7, 2017. The ACM included: • Exterior roof mastic The LBP included: • All exterior components • Interior doors and jambs • Interior window frames This "Notice of Completion" is limited to work performed at the above referenced location. Based upon both our oversight of the abatement activities and our inspection of the structure, post -abatement, demolition of the structure may be performed without further regard for the presence of ACM or the instability of LBP. If you have any questions, please don't hesitate to call. John Payne, C.A.C. Project Scientist CA Certified Asbestos Consultant #93-1226 Colin P. Young, CIH Principal 257 of 585 Attachment No. 2 PHOTO OF STEIN ORIGINAL PROPERTY SHOWING 1904 F AVENUE WITH CONSTRUCTION OF KITCHEN ADDITION 1920'S 258 of 585 Attachment No. 2 259 of 585 Attachment No. 2 PHOTOS EXTERIOR & INTERIOR AS OF 9/2017 PRIOR TO WINDOW BREAKAGE 260 of 585 Attachment No. 2 261 of 585 Attachment No. 2 262 of 585 Attachment No. 2 263 of 585 Attachment No. 2 264 of 585 1 Attachment No. 2 265 of 585 Attachment No. 2 266 of 585 Attachment No. 2 f.r. 1 , ' .' , • 267 of 585 t Attachment No. 2 268 of 585 Attachment No. 2 269 of 585 Attachment No. 2 270 of 585 Attachment No. 2 271 of 585 Attachment No. 2 272 of 585 JJ a Attachment No.2 273ofBB Attachment No. 2 274 of 585 Attachment No. 2 275 of 585 Attachment No. 2 276 of 585 Attachment No. 2 PHOTOS OF MINIMAL FIRE DAMAGE TO UPSTAIRS FRONT BEDROOM 277 of 585 I. Attachment No. 2 n v Attachment No. 2 279 of 585 Attachment No. 2 280 of 585 Attachment No. 2 281 of 585 Attachment No. 2 282 of 585 Attachment No. 2 283 of 585 Attachment No. 2 PROPOSED PLOT PLAN MOVE OF HOME FROM 1904 F TO SOUTH END OF 1808 F AVENUE 284 of 585 r 989 Jo 98 {FM T poKT/1-o e�' ♦ f'��, l il�s''ld/ . JaJa ! f { \I V Tc Z 1.LV`-1 ib E ML IUD Nb 'F"AvrbUE z .5 11 FAXIA Ito?aF t 1I i s s PRO rt6ED ?U!f 'PLAN: -ro RELc AT r" i eleV6 MEE N, ifCTMl 1 s4 T" . reii a.M 4,T= u1 rhntlily I WE; [ 6tAvE 32 " i' d'' Attachment No. 2 QUEEN ANNE & VICTORIAN ARCHITECHTURE When you think of Victorian architecture, you probably envision edged roofs, ornate gables and wide porches with spindlework. The quintessential Queen Anne 'style is by far the most popular Victorian home style in the U.S., but it's not the only representation of the era. There is also: Second Empire Style; Gothic Revival; Stick Eastlake; Folk Victorian and Italianate. Origin Strictly speaking, Victorian homes are those designed during the long rule of Britain's Queen Victoria, from 1837 until her death in 1901. Although the queen never designed anything, her husband, Prince Albert, was "an architecture nut of the first order," according to Richard Guy Wilson, who holds a chair in architectural history at the University of Virginia. Although the era encompasses many styles, they tend to share in common a lot of ornament on the outside and a lot of"stuff' on the inside (decorative moldings, picture rails, built in nooks and crannies). The exterior might be covered with textures and patterns that were unusual until that time. New machinery made possible the mass production of spindles, carvings and other decorative elements that otherwise would have been prohibitively expensive. National City Being the second oldest city in the county, we have beautiful examples of most all types of Victorian homes throughout our city. The Dickinson Boal and Wallace Dickinson are great examples of large Queen Anne Victorians and the George Kimball home on L Avenue is a fine Italianate. Most of the large homes in our city are listed on our Historic Site list, however the listing of smaller homes paid for by the city have not been listed and we are losing them quite frequently as we almost lost the one at 1904 F Avenue. The list needs to be added as a resource on the General Plan so that proper notifications can be made to preserve what we have left and to allow partnership between developer and preservationist to occur, such as the saving of the historic olive grove at 2r' and K; the Stein Family Farm, and now the saving of 1904 F Avenue. 286 of 585 AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND NATIONAL CITY LIVING HISTORY FARM PRESERVE THIS AGREEMENT (the "Agreement") is entered into as of December 19, 2017 by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and NATIONAL CITY LIVING HISTORY FARM PRESERVE, a non-profit California corporation ("NCLHFP"). RECITALS A. The CITY owns the improved real property commonly known as Stein Farm, located at 1808 "F" Avenue, National City, California (the "Property"). B. The NCLHFP desires the CITY to approve the physical relocation of the Victorian House (the "Structure") from its current location immediately to the south at 1904 "F" Avenue onto a fully -permitted foundation at the Property. C. The NCLHFP agrees that they have the means to properly relocate and rehabilitate the Structure, at no expense to the City, in compliance with all applicable federal, state, and local laws or ordinances and permitting requirements. D. The NCLHFP agrees to obtain a Release from the property owner of 1904 "F" Avenue for the physical relocation of the Structure onto a fully -permitted foundation at the Property and assume all responsibility and liability for such physical relocation. E. The CITY agrees to have NCLHFP maintain and operate the Structure as part of the educational farm and museum for the community's benefit enrichment of National City's history, and NCLHFP is willing to operate and maintain the Structure for such purpose. NOW, THEREFORE, in consideration of the foregoing facts, and in consideration of the promises and covenants hereinafter set forth, the parties agree as follows: TERMS OF AGREEMENT 1.1 NCLHFP shall obtain all necessary permits for the physical relocation of the Structure located at 1904 "F" Avenue onto a fully -permitted foundation at the Property before the work begins. 1.2 NCLHFP shall demonstrate they have the financial and material backing to complete the physical relocation and subsequent rehabilitation of the Structure. The City shall pay no cost associated with the physical relocation and rehabilitation of the Structure onto the Property. 287 of 585 1.3 NCLHFP shall physically relocate the Structure onto the Property within 90 days of the date of this Agreement. If NCLHFP does not so relocate the Structure, the City shall issue a demolition permit to the property owner of 1904 "F" Avenue to demolish the Structure. 1.4 Within 90 days of the date of this Agreement, NCLHFP shall provide the City Manager, or designee, documents proving NCLHFP's financial and material ability to rehabilitate the Structure and obtain all City permits required. Such permits will include, for example, permits for sewer and water connections, and building plans showing details regarding the foundation and footings. 1.5 If NCLHFP fails to obtain a Certificate of Occupancy within 180 days from the date when the Structure has been relocated onto the Property, the City will demolish the Structure. If the City demolishes the Structure pursuant to this Section, NCLHFP expressly agrees to reimburse the City for all costs associated with such demolition. 1.6 NCLHFP shall obtain an occupancy permit from the Building Official within 180 days of the physical relocation of the Structure. Once an occupancy permit is so issued: 1.6.1 The Structure shall remain property of NCLHFP for 2 years starting from the date on which the Structure receives its certificate of occupancy. Immediately thereafter, the Structure, and all improvements made to the Structure by the NCLHFP, shall become the property of the CITY. 1.6.2 The Structure shall, after expiration of the two-year period described in Section 1.4.1, become subject to any then -existing Maintenance and Operating Agreement entered into between NCLHFP and the CITY. 1.6.3 The City shall provide written acceptance of the Structure to the NCLHFP, at which point this Agreement will terminate. 1.7 NCLHFP shall provide and pay for all utilities or services necessary for the use and operation of the Structure at all times relevant to this Agreement, including water, electricity, trash, and sewer charges. NCLHFP shall pay directly to the applicable utility company such charges, and the City shall have no obligation to pay for such utility services. INDEMNIFICATION AND INSURANCE 2.1 NCLHFP Indemnity. The CITY shall not be liable for, or liable to NCLHFP, for the physical relocation and rehabilitation of the Structure. NCLHFP 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 NCLHFP' transfer of the Structure to CITY property or arising either directly or indirectly from any act, error, omission or negligence of NCLHFP 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 Agreement Page 2 of 5 City of National City and December 19, 2017 National City Living History Farm Preserve 288 of 585 established sole negligence or willful misconduct of the CITY, its agents, officers, or employees. The CITY will cooperate reasonably in the defense of any action, NCLHFP shall employ competent counsel, reasonably acceptable to the City Attorney of National City. 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. 2.1.1 Third Party Indemnity. NCLHFP 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. 2.1.2 Waiver of Liability. NCLHFP agrees to obtain from all guests, invitees, or third party organizations whose participants work on this project, a waiver of liability and hold harmless agreement upon terms satisfactory to the CITY. 2.2 Insurance. NCLHFP, at its sole cost and expense, shall purchase and maintain, and shall require its subcontractors, and third party organizations NCLHFP invites onto the Property, to purchase and maintain throughout the term of this Agreement, the following insurance policies: 2.2.1 Commercial General Liability Insurance, 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". 2.2.2 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. 2.2.3 Workers' Compensation Insurance in an amount sufficient to meet statutory requirements covering all of NCLHFP `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. 2.2.4 If NCLHFP has no employees subject to the California Workers' Compensation and Labor laws, NCLHFP shall execute a Declaration to that effect. The form of said Declaration shall be provided by NCLHFP to the CITY. 2.2.5 The aforesaid policies shall constitute primary insurance as to the CITY, its officers, employees, and volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CITY's Risk Manager, at the address listed in Section 2.2.7 below, of cancellation or material change. Agreement Page 3 of 5 City of National City and December 19, 2017 National City Living History Farm Preserve 289 of 585 2.2.6 If required insurance coverage is provided on a "claims made" rather than "occurrence" form, NCLHFP 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. 2.2.7 The Certificate Holder for all policies of insurance required by this Section 2.2 shall be: City of National City c/o Risk Manager 1243 National City Boulevard National City, CA 91950-4397 2.2.8 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 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. 2.2.9 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 NCLHFP 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. 2.2.10 All deductibles and self -insured retentions in excess of $10,000 must be disclosed to and approved by the CITY. 2.2.11 If NCLHFP 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 NCLHFP. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY. 3.0 Recitals A-E above are incorporated by this reference as terms to this Agreement. IN WITNESS WHEREOF, the CITY and NCLHFP have duly executed this Agreement as of the day and year first above written. [Signature Page to Follow] Agreement Page 4 of 5 City of National City and December 19, 2017 National City Living History Farm Preserve 290 of 585 CITY OF NATIONAL CITY (CITY) By: Ron Morrison, Mayor APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney By: Roberto M. Contreras Deputy City Attorney NATIONAL CITY LIVING HISTORY FARM PRESERVE, a non-profit California corporation (Signatures of two corporate officers required.) By: (Name) (Print) (Title) By: (Name) (Print) (Title) Agreement Page 5 of 5 City of National City and December 19, 2017 National City Living History Farm Preserve 291 of 585 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND NATIONAL CITY LIVING HISTORY FARM PRESERVE APPROVING RELOCATION OF A VICTORIAN HOUSE FROM 1904 "F" AVENUE TO THE STEIN FARM PROPERTY LOCATED AT 1808 "F" AVENUE IN NATIONAL CITY, SUBJECT TO APPLICABLE CITY PERMITS AND REQUIREMENTS AS DESCRIBED IN THE AGREEMENTS WHEREAS, the City of National City owns the improved real property commonly known as Stein Farm, located at 1808 "F" Avenue, which is maintained and operated by the National City Living History Farm Preserve (NCLHFP); and WHEREAS, the NCLHFP desires to relocate an 1880's Queen Ann Victorian House ("Victorian House") from its current location immediately to the south of Stein Farm at 1904 "F" Avenue, onto a fully -permitted foundation at Stein Farm; and WHEREAS, the NCLHFP has the financial means to properly relocate and rehabilitate the Victorian House, at no expense to the City, in compliance with all applicable federal, state, and local laws and permitting requirements; and WHEREAS, the NCLHFP shall maintain and operate the Victorian House as part of the educational farm and museum for the community's benefit and enrichment of National City's history, and NCLHFP is willing to operate and maintain the Victorian House for such purpose. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the Mayor to execute an Agreement with the National City Living History Farm Preserve approving the relocation of an 1880's Queen Ann Victorian House from its current location at 1904 "F" Avenue to the Stein Farm property at 1808 "F" Avenue in National City, subject to applicable City permits and requirements as described in the Agreement. PASSED and ADOPTED this 19' day of December, 2017. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ron Morrison, Mayor 292 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 293 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 Second Amendment to the Agreement between the City of National City and Alpha Project for the Homeless to correct the total not to exceed amount to be $170,000 293 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute a Second Amendment to the Agreement between the City of National City and Alpha Project for the Homeless to correct the total not to exceed amount to be $170,000 for the period of March 2, 2017 through June 30, 2018, to provide outreach services for the homeless and intervention services, and to adjust the monthly not to exceed amount to $10,000 for the term of the Agreement, ending June 30, 2018. (Neighborhood Services) PREPARED BY: [Armando Vergara PHONE: [(619) 336-421 1 EXPLANATION: On June 27, 2017, the City council approved the First Amendment to the Agreement with Alpha Project for the Homeless, to continue to provide outreach and intervention services for the homeless in National City from July 1, 2017 thru June 30, 2018. This First Amendment Agreement was based on a prior contract which had a monthly not to exceed amount of $7,140, however all prior contracts where set at with a monthly not to exceed amount of $10,000. Due to invoicing and projection amounts going over $7,140, staff is amending the monthly contract cap to return to the prior initial not to exceed amount of $10,000. As part of this agreement, Alpha Project continues to provide monthly statistics of National City outreach and services including ongoing efforts to keep National City current with local and state initiatives. Staff seeks approval to exercise this Second Amendment to the one (1) year extension. This Second Amendment would appropriate proper funding amounts and increase the monthly not to exceed amount to $10,000 with term ending June 30, 2018. Funds are appropriated in Neighborhood Services Contract Services account. DEPARTMENT: Nei APPROVED BY: ood Services Department FINANCIAL STATEMENT: ACCOUNT NO. 001-420-057-299-0000 ENVIRONMENTAL REVIEW: [NIA] ORDINANCE: INTRODUCTION: 1 FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt the resolution. BOARD I COMMISSION RECOMMENDATION: [NIAI ATTACHMENTS: 1. March 2, 2017 Agreement 2. First Amendment 3. Second Amendment 4. Resolution 2J44 of 585 I AUNT BY AND BETWEEN THE CTFY OF NATIONAL CITY . AND ALPHA PROJECT FOR THE HOMELESS Tiffs AGREEMENT T is earned into on this 2'4 day of lvlairch, 2017, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and Alpha Project for the Homeless, a nonprofit corporation (the "CONSULTANT"). RECITALS WBERRAS, the CrI Y desires to employ a CONSULTANT to provide outreach services for the homeless and intervention services. WHEREAS, the CITY has determined that the CONSULTANT is a nonprofit corporation and is qualified by experience and ability to perform the services desired by the CITY, and the CONSULTANT is willing to perform such services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: I. ENGAGEMENT OF CONSULTANT. The CITY agrees to engage the CONSULTANT to provide outreach wises for the homeless and intervention services, and the CONSULTANT agrees to perihrm 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 ofthe CONSULTANT. 2. EFFECTIVE DATE AND LENGTH OF AGREEMENT. This Agreement will become effective on . .be 1, 2.01 The dmenon of this Agreement is for the p of 7 months through June 30, 2017. Completion dates or time durations for specific portions of the project are set frith in Exhibit "A". This Agreement may be extended by mutual agreement upon the same terms and conditions for an additional one (1) year team. The Parties may exercise up to three one-year extensions. Any extension of this Agreement must be approved in writing by the City Manager. 3. SCOPE OF SERVICES. Alpha Project will commit two fall -time outreach workers to deploy a two -person team five th nes per week, eight hours per day to provide homeless outreach services. Outreach: teams will respond to referrals and requests for contact from the National City Police Department's PERT team, Patrol Units, Neighborhoods Services Department, as well as bushnesses/reddents,, city departments and agenda affect by homelessness throughout the city. By providing direct interaction with the homeless, the Homeless Outreach teams are able to effectively reduce the nor of homers men, women and children on the street and direct these individuals to care and service that best serve those individual'a needsas well as the needs of the affected 295 of 585 communities. Services will include; family reuniMcalion, rental anistance, security deposits., bus tickets, housing placements and transportation. Monthly statistical reporting of all services provided and contacts will be kept. The scope of services to be provided is more fully described in Exhibit "A". The CONSULTANT shall be responsible for all research and reviews related to the work and shall not rely on personnel of the CITY for such services, except as authorized in advance by the CITY. The CONSULTANT shall appear at meetings specified in Exhibit "A" to keep staff and City Council advised of the progress on the project. The CITY may unilaterally, or upon request from the CONSULTANT, from time to time reduce or increase the Scope of Services to be performed by the CONSULTANT under this Agreement. Upon doing so, the CITY and the CONSULTANT agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction or increase in the compensation associated with said change in services, • 4. PROJECT COORDINATION AND SUPERVISION. Armando Vergers 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. Amy Gonyeau thereby is designated as the Project Director for the CONSULTANT. 5. COMPENSATION AND 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 "B" shall not exceed $50,000 for the duration of this Agreement, a period of 7 months, December 1, 2016 through June 30, 2017. The compensation for the CONSULTANT'S work shall not exceed $7,140 per month. Monthly invoices will be processed for payment and remitted within thirty (30) days from receipt of invoice, provided that work is accomplished consistent with Exhibit "A", as determined by the CITY. The CONSULTANT shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred, and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CITY, and for furnishing of copies to the CITY, if requested.. 6. ACCEPTABILITY OF WORK, The CITY shall decide any and all questions which may arise as to the quality or acceptability of the services performed and the manner of performance, the acceptable completion of this Agreement, and the amount of compensation due. In the event the CONSULTANT and the CITY cannot agree to the quality or acceptability of the work, the 'flamer 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 ofperfoanancye and/or the compensation payable to the CONSULTANT. Outreach to Homeless and Page 2 of 11 City oftlatimal city and Interverdica services (March 2017) .A phe Project for the teens 296 of 585 7. DISPOSTiTON AND OWNERSHIP OF DOCUMENIE. The Memmenda, Reports, Maps, Drawings, Plans, Specifications, and other documents prepared by flu CONSULTANT fior this peoject, whether paper or electronic, shall become the prapexty of the C1TI for use with respect to this project,, and shall be tumed over to the CITY upon completion of the project, or any phase thererty as contempleted by this Agreement Contemporaneously with the transfer of documents, the CONSULTANT TAN T hereby emigreCflY ato the , and CoN'SULTANT thereby expressly waives ar d disclaims any copyright in, and the right to reproduce, all witless material, drawings, plans, specifications, or other work prepared under this Aft, except upon the CITY'S prior authoron ae]ang reptoductico, which Inzthorization shall not be unreasonably withheld. The CONSULTANT ' shall, upon request of the CrFY, execute any fi xthcr document(s) necessary to farther elevate this waiver and disclaimer. The CONSULTANT agrees that the CITY may. use, reuse, alter, reproof, modify, assign, transfer, or in any °dam way, medium, or method utilize the CONSULTANT'S written work product for the C:ITY'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 CTTY, oar for any liability to the CITY should the docwnenta 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 Aft will be acting in an hidependent capacity and not as agents, employ per,, or joint vemmiers with one another. Neither the CONSULTANT nor the CONSULTANT'S employees are employees of the CTI'Y, and are not entitled to any of the rights, benefits, or privileges of the CrrTY'S employees, including but not Britt to retirement, medical, unemploy- ment, or workers' compensation insurance. This Agrocarnest 001111=407111711COMOrdi aces of 9 C i'^!'SL 1.TANT and the CONSULTANT'S employees, and it is recogaized by the par% that a substantial inducement to the CITY for entering into this Agreement wee, =A is, t professional reputation and ice of the CONSULTANT and its employees. Neither this Aft nor any interest hewn may be assigned by the CONSULTANT without the prior written consent of the CTI'Y. Nothing herein contained is intended to prevent the CONSULTANT from employing or biting as many employees„ er SUBCONSULTANTS, as the CONSULTANT may deem necessary for the proper and efficient pence of this Agreement. All agreements by CONSULTANT with its SUBCONSULTANT(S) shall require the SUBCONSULTANT(S) to adhere to the applicable terms alibis 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 sot 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, saavants, and employees aim as to the CITY Ontizia m Rondos ad Page 3 of 11 hitavertian Services (Mach 20i7j aye t[mayend Alpha Prqjecc tbribef Remakes 297 of 585 wholly independent CONSULTANT, and that the CONSULTANT'S obligations to the CITY are solely such as are prescribed by this Agreement. 10. CO14LIANCE 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 aimikar conditions and in similar locations. The CONSULTANT shall take all special precautions necessary to protect the CONSULTANT'S employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site. B. Unless disclosed in writing prior to the date of this Agreement, the CONSULTANT warrants to the CITY that it is not now, nor has it for the five (5) years preceding, been debarred by a governmental agency or involved in debarment, arbitration or litigation proceedings concerning the CONSULTANT'S professional performance or the furnishing of materials or services relating thereto. C. The CONSULTANT is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the project the CONSULTANT has been retained to perform, within the time requirements of the CITY, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONSULTANT has notified the CITY otherwise, the CONSULTANT warrants that all products, materials, processes or treatments identified in the project documents prepared for the CITY are reasonably commercially available, Any failure by the CONSULTANT to use due diligence under this sub paragraph will render the CONSULTANT liable to the CITY for any increased costs that result from the CITY'S later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time. 13. NO I-DISCR1 IINATION PROVISIONS. The CONSULTANT shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONSULTANT will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical. condition. Such action shall include Oulreaoh to nay amd Page 4 of 11 city ofNeticeal city and irdervention Services (March 2017) Alpha Project far the Homeless 298 of 585 but not be limited to the following: employment, ups, demotion, transfer, recruitment or recruitment advertising, layoff oron, rates ofpay or other tbrnas of compensation, and selection for training, malting apprenticeship. The CONSULTANT agrees to post in camapic uoua places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of'thi s non-discriminsticat clause. 14, CONIZIDENTIAL DIFORMATION. The CITY may fC0331 One to time commonicate to the CONSULTANT amain confidential lion to enable the CONSULTANT to effectively perform the services to be provided herein. The CONSULTANT shall treat all such ikon as confidential and shall not disclose any lye thereof without the prior written consent of the CITY. The CONSULTANT shall tira4 the zase and circulation of such information, ev= 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 iniosn anion that (1) has been disused 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 obligafion of confidentiality, or (iv) has been or is hereafhr rightftilly disclosed to the CONSULTANT by a third party, but only to the extent that the use or disclosure thereof has been or is nghtfally authorized by that third party . The CONSULTANT shall not disclose any reports, recommendations, s, aosudusions or other results of the services or the existence of the subject matter of this Agree.mot without the prior written consent of the CITY. In its perfosaance heareaander, the CONSULTANT shall comply with all legal obligations it may now or heeeafter have respecting the in£orn ation or other property of any other person, firm or corporation. CONSULTANT shall be liable to CPI'Y for any damages caused bybreach of this condition, pennant to the provisions of Section 14. 15. INDEMNIFICATION AlV HQLD HARMLESS. The CONSULTANT agrees to defend, indemnify and hold harmless the City ofNational .City, its alma, o `2dsitta, age, employees, and volunteers against and from any and. all liability, loss, damages to property, injuries to, or death of any person or ems, and all .daims, suits, actions, p- ..� ittriltyie Lift, and deikese costs, of any kind or nature, ;nciuding veoeeers' compensation claims, of or by anyone whom`, resulting from or arising out of the CONSULTANT'S performance or other�obligations under this Agreement; provided, haver, that this axxlemnifteation and hold harmless shall not include any claims or liability arising from the establiged sole negligence or willful misconduct of the CITY, its agents, officers, employ or VOIthgeati. CJTY will cooperate reasonably in the defense of any action, and CONSULTANT shall employ competent counsel, reasonably acceptable to the City Air. The indemnity, defense, and hold finless 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' COMU ,NSATION. The CONSULTANT ill comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of Califorrnia, the applicable previsions of Division 4 and 5 of the California •Government Code and all amender thereto; and all similar State or federal ac s or laws applicable; said shall Charm* to &sad= and Services Notch 2017) Page 5 of 11 City rrr Chy ®a Mp}mProject far the Iia a 299 of 585 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 vohmteers, 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 puree and maintain, and shall require its SUBCONSULTANT(S), when applicable, to purchase and rs+sintain throughout the term of this Agreement, the following checked insurance policies: A. JI If checked, Professional Liability Insurance (emirs and omissions) with minimum limits of $1,000,000 per occuurence. 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 shall not cxmtribute to any loss under said insurance.. Said policies shall provide for thirty (30) days prior written notice to the CITY of cancellation or material change. F. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the 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. Insurance shall be written with only California admitted companies that hold a current policy holder's alphabetic and financial size category rating of not less than A:VII according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the CITY' S Risk Manager, In the event coverage.is provided by non -admitted Outreach to liontakas and Page 6 of 11 city ofWadenal city end rntervetinm Services Namh 2017) Alpha Project for the Aomedeas 300 of 585 "surplus lines" carriers, they must be included on the most recent California List of Eligible Surplus inns Insurers ( ESLI list) and otherwise meet rig requinsnemts. H. This Agreement shall not take effect until cent ficate(s) or other iniffi.cient proof that these ice provisions have been complied with, we 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 tames during the terms of this Agreement, the CITY may elect to trot the failure to snsrntain the requisite insurance as a breach of this Agreement and ten:nitrate the Agreement as provided heap.. L All deductibles and self -insured rations in excess of$10,000 must be disclosed to and approved by the CITY. 18. SAL FEES. If any ply brims a suit or action against the other party arising from any breach of any of the COMMIS or agreements or any ides in any of the representations and warranties on the partof the other party arising out of this Aft, then th.t evert, the prevailing party in such action or dispute, whether by final judgment or out -of - court settlemeat, shall be stilled 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 atto ney's feces incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attor ey's fees to the prevailk8 ley if other than the CITY shy, in addition, be limited to the amount of aitorney's fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual amount of enemy's flees inured by the gmvalling party. `19. TERMINATION. A. This Agreement may be terminated with or without cause by the CITY. Termination without cause shall be emotive only upon 60-day's written notice to the CONSULTANT. During Said 60-day period the CONSULTANT shall perform all services in accordance with this Agreement. B. This Agreement may also be teed immediately by the CITY for cause in the event of a material breach °f tip Agreement, miarepreeentation by the. CONSULTANT in' won with the don of this Agreement nt or the performance of services, or the failure to perform services as directed by the CITY. C. Terminstitm with or without cause shall be emoted by delivery of mitten Notice of Tien to the CONSULTANT as provided for herein. D. In the evert of termination, all finished or unfinished Memoranda Repeats, Maps, Drawings, ems, Specifications and other data prepared by the CONSULTANT, whether paper or electronic, shall iately become the property of and be delivered to the CITY, and the CONSULTANT shill he entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date ofthe Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CITY by the CONSULTANTS 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 up (1) the filing ofepethion ink affeeting the CONSULTANT; (2) a oa to Bamako sad Page 7 of 11 blieneeation 301 of 585 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, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, ratified or ordinary ail, 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 lie facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cables when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To CITY: Armiando Vergara Director of Neighborhood Services Neighborhood Services Department City of National City 1243 National City Boulevard National City, CA 91950-4397 To CONSULTANT: Amy Gonyeau Chief Operating Officer Alpha Project for the Homeless 3737 Fifth Ave, Suite 203 San Diego, CA 92103 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, Outreach to Homekes end Page 8 of 11 City of National City said Invention Services (Mach 2017) Alpha Pmjtet fbrthe frameless 302 of 585 process or material for the project in which the CONSULTANT has a maaterial finanelal interest, either direct or indirect, without first notifying the CITY of that fact. The CON3ULTA,NT shall at all times comply with the terms of the Political. Reform Act and the National City Pict of Interest Code. The CONSULTANT shall immediately disq-ualify itself and shall not use its official position to infEue nee in any way any matter coming before the CITY in which the CONSULTANT has a financial interest as dew in Government Code Section 87103. The CONSULTANT represents that it has no kx>owiedge of any tumid its that would require it to disqualify itself from any nutter on which it might peafnm services for the CITY. ❑ If checked, the CONSULTANT shall comply with ail of the reporting requirements of the Patient Reform Act and the National City Conf et of Interest Code. Specifladly, the CONSULTANT shall file a Stet ofE.ea sic interests with the City Clerk of the City afN atlional City in a tidy manner on firms which. the CONSULTANT shall obtain from the City Clerk. The CONSULTANT shall be strictly liable to the CITY for all . expenses the CITY ni sir by� ;' or a3' yirttie� of any violation of this Paragraph 22 the CONSULTANT. 22. PREyAjLi qG WAGES. State prevailing wage rates may apply to w eek p formed under this Agreement, State prevailing wages rates apply to all public works contracts as set forth in California Labor Code, inehelieg but not limited to, Sections 1720,1720.2, 17203, 1720.4, and 1771. Consultant is solely responsible to die if State fling wage rates apply and, if applicable., pay such rates in aCCOrdatlee with all laws, ordinances, rules, and relegations. 23. M SCELLANEOU1 PROVLSIO + 5. A. Computation of Mu Periods. If any date or time period provided for in this Agreed 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. E. Counteparts. This.Agteement may be executed in multiple each of which shall be deemead an origins', but all of whim, together, shall constitute but one and the same C. Ctons. Any captions to, or headings of; the sections or subsections of this Agreement are solely for theeonrve Hellas ofihe parties hew, are not a part of this Agreement, and shall not be used for the lion or determioatwion 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 Ste. 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 cenditons dined in this Agreement,the terms and conditions offing Agreement shall comtiel. F. Amendment to this elgreentent. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. Outreach to fichseless end hamme = Services (Mora 2017) Page 9 of 11 City etrrsomu City end Atha Project fir the Bezdeee 303 of 585 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. L 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 super 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 CITY, both the insurance provisions in Section 17 and the indennif cation and hold harmless provision of Section 15 of this Agreement. 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 constriction 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. Masada do Homeless marl Page 10 of 11 City of robs aI coy sad hitervmdon Samba (March2017) Alpha Project for the Homeless 304 of 585 IN WITNESS 1NBEREOF, the partiesl have executed thin Agr a rat onthe dabs and year tart above w CITY OF NATJDNAL cny I Menaypr APPROVE) AS TO FORM Gone H.I Interim Cky A Clakeidi Hood= oil 20t7) ALPHA PROJECT FOR THE HOB gloms,* or SIsig ~Woe* -ex aware) Page 11 of11 aty otNidioodOtyno. AlploRagettibrtholicomina 305 of 585 EXHIBIT A SCOPE OF SERVICES CTTY OF NATIONAL CITY SERVICES Alpha Project will commit two full-time outreach workers, dedicated to National City, to connect with prospective unsheltered participants and to begin the process of rapport building that will lead to their inclusion in various long-term programs. The target population will include numerous individuals resistant to treatment and reticent about committing to format service programs. Overcoming these cilent-specific barriers to participation will Involve outreach workers gaining the trust of such individuals and guiding them through a low -demand process to facilitate their placement in appropriate programs. It will also require linguistic, cultural and class sensitivity that accepts and includes each participant's established adaptation to prolonged periods of homelessness and marginalizatlon. In short, outreach efforts to unsheltered clients will meet those clients at their own level and accommodate their own realities to make program placement feasible. For their own sake, reluctance or grudging willingness to accept program services will not constitute barriers to entry. On the contrary, such variables are to be expected and will indicate that outreach is targeting the right individuals. Outreach staff will respond to referrals and requests for contact from the National Clty Police Departments PERTteam, Neighborhood Services Department, as well as companies, city departments and agencies affected by homelessness throughout the city. These often include public libraries, churches, benefits offices, healthcare providers and other service providers. The Homeless Outreach Program benefits the various communities affected by homelessness by sending outreach teams into those neighborhoods to directly impact the number of homeless men and women on the streets. By providing direct interaction with the homeless, and in collaboration with NCPD's PERTteam, the Homeless Outreach teams are ableto effectively reduce the number of homeless men and women on the street and direct these individuals to care and services that best serve those indivlduars needs, as well as the needs of the affected communities. Service Provider, Alpha Project 1 of Z 306 of 585 Services shall includes 1. Produce monthly statistical reporting and record keeping of housing placements, services provided and numbers of contacts 2. Deploy outreach teams 5 days per week to provide homeless outreach services 3. Transportation wilt be provided upon client's request 4. Outreach teams will work closely with National City businesses to educate and assist In homeless related issues 5. Outreach teams will be available on an on call basis as well (during working hours), when requested G. Rental assistance, security deposits and bus tidcets home for family reunification 7. Receive and follow-up with resident? regarding the city's homeless population within 72 hours (as documented in contact log). 8. Conduct outreach to homeless individuals, to connect them with appropriate services available within the community (as documented In contact log and intake forms). 9. Provide information and facilitate referrals to homeless Indheduals, including informatton on obtaining pubic benefits and other services and programs available in the community such as shelter and long-term housing, food programs, medical services, drug and alcohol treatment programs, domestic violence programs, and other programs as needed (as documented in contact log and case flies). 10. Provide one-on-one cries intervention, assessment and case management for homeless clients (as documented in case files). 11. Participate In ride -slangs, as determined by the City, with National City Police Officers to provide homeless outreach and assistance (documented in Alpha Weekly Reports). 12. Partidpate In regular ordination meetings such as National Clty's Homeless Committee Meeting and the South Bay Homeless Advocacy Coalition to ensure that referrals are current and services are coordinated with regional efforts. 13. Networking with other community homeless group for the purpose of examining best practices and sharing & receiving Information in meeting program objectives. 14. Provide weekly reports on program activities and outcomes to the National City Homeless Committee Chair. 1S. Provide monthly statistics as determined by the Homeless Committee Chair. 16. Review weekly reports to ensure objectives are being addressed. 17. Homeless Outreach workers will assist in notification of shopping cart retrieval when associated with homeless activ'rtfes. 18. Assist with docvmene..ation of stored homeless property after storage time has expired per City abatement procedures and the donation of such items not recovered. 19. Provide outreach to community and assistance with "No-Trespasm'i notification notices when dealing with a homeless project site/location. Service Provider: Alpha Project 2 of 2 307 of 585 DELIVERABLES Monthly report on homeless counts along pre -determined zones. Report to include total count, total assessed, males vs. female, count per city beats, and count of placement or service. Reports to contain detail information from field data collected as a result of outreach and case management Service Provider: Alpha Project 3 of 2 308 of 585 EXHIBIT B COMPENSATION&INVOICING CITY OF NATIONAL CITY COMPENSATION For the satisfactory performance and completion of the services under this Agreement, the City shall pay Service Provider compensiltion as set forth hereunder. 1. Service Provider shall be compensated and reimbursed by the City on the basis of Invoices submitted each month for services performed during the preceding the month. a. Each invoice for work shall Include: 1. Date work performed . ii. Description of the work performed ill. Direct Costs 2. Professional services shall be invoiced in accordance with the following Rate Schedules: a. Homeless Outreach and Intervention Services $7,140/month. b. Total cost of services for the period of December 1, 2016 and June 30, 2017, shall not exceed $50,000. Note: The following shall be considered part of the fully burdened hourly rate state in the Agreement; vehicle expenses, parking, tolls, film, postage, computer usage, printing,, normal copying and docerrnent reproduction, blue print services, travel, lodging, telecommunications, photography, and all other costs and expenses incurred in completing such services. INVOICING 1. Payment Documentation: As a prerequisite to payment for services, Service Provider shall Invoice the City for services performed and for reimbursable expenses authorized by this Agreement, accompanied by such records, receipts and forms as required. 2. Service Provider shall indude the following information on each invoice submitted for payment by the City, in addition to the information required in the Compensation Section above: Service Provider: Alpha Project 309 of 585 a. The following certification phrase, with printed name, title and signature of Service Provider's project manager or designated representative: "I certify under penalty of perjury that the above statement Is just and correct according to the terms of Document No. and that payment has not been received." b. Dates of service provided c. Date of invoice d. A unique invoice number 3. City shall, at its discretion, return to Service Provider, without payment, any invoice, which has been submitted without the above information and certification phrase. 4. Invoices shall be mailed to the attention of: City of National City 5. Should City contest any portion of an Invoice, that portion shall be help for resolution, but the uncontested balance shall be processed for payment. City may, at any time, conduct an audit of any and all records kept by Service Provider for the Services. Any overpayment discovered in such an audit may be charged against the Service Provider's future invoices and any retention funds. 6. Service Provider shall submit all invoices within thirty (30) days of completion of work represented by the request and within sixty (60) days of incurring costs to be reimbursed under the Agreement. Payment will be made to Service Provider within thirty (30) days after receipt by City of a proper invoice. Service Provider: Alpha Project 2 of 2 310 of 585 MIrtAM 27411 ALPHPROf ACOREAK CERTIFICATE OF. LIABILITY INSURANCE E Millikseartrril MS�TO RI N AS HOUR of IIPORMATION MAY AIM t NO Malin C a TEDow A 4T-Vl9 y 1 E3ATWY . EMEND Mt E � 1, T c 1F TEOF >= . OMB w!C 00(�te11i1 i Ati0lst#ii40r �71NlN�! 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MINS SOWN MAY ME 6IE M REDUCED Elf pyAS) A x comiene.altlllsal.ulm,>'r RPMDaielreeie O011201Y;I eI Mists Mahal 11 51141425 4014.1111110.--Cialint enl NisuRaldeffSONCelsigoiessiE Sagraftmeilliadelphill Irtdentrily hemline lom taaNewYork And astions1Ins ABEM.c: INIRR Q: INCIF 1*8 Cants tails amEL1 w APPIAN Pik R maw O E AscomsessWiseurt x alIPURSRFe MRS OP Ow on MIRO yessormus Ado scuff #100,OB0 sena 11,000,4000 GeNERALASelleSwie 1124006000 rAvros „x1 091112011 a0/6112017 AZIEratEumff NOMMI lALIAr —11 so? rassonnssla oo LLPI7 v 011/01121116 fiODA1tt3113 SLOW Par pima) 1 n 1 1 alma esterartx titirmv I t EL. Mass- 44.010.O00 AL. MOW- PolarL T 11eIIL UD eINNIOFOPaATISSISHAMINSM 1 memilalabodabdwor be ~mil V tam wFwgif City of lkistional ICI* Is instudad as sddiStinst Insured %sib respests in eiu em! Liability per Ow atlealted riot 1R► 1243 listIonsi City Blvd. l CA P1011D moos Alma rteeABOVE macaw= num se nalreaLio sate THE BEIRit' TCH WE TIMM NOME yiEL JIM DIILIVIsin !I ectoeleuem ism 'THE RIMY FICIVIBONS. ALIMOSI ilEmIIMUNIENTRUSE /dusd'it,?ritfd a!«t t010dQatI 't 6Ok. i" ntserxad *co MORD 23 Milan 1 af 1 The ACXIlW Ilsnr. E9A ago ere to tslxad merle ACOITO IRIMOIRSIUSINKOS 311 of 585 Q+1SUR Reject fatee HovI POL1CY S; FI 'K1P6202 POLICY IUD: DWOMci1g To .oSDbliorr 6514111031AL OMR&I CvaD12V4is THIS ENDORSEMENT CHANGES TIE POLICY. PLEASE READ IT CAREFULLY. ADDMONAL INSURED - STATE OR GOVERNMENTAL AGENCY OR SUBDMSION OR POLITICAL SUBDIVISION -- PERMITS OR AUTHORIZATIONS 'ft>leentemernentnloddlae Manor provided under the hoiiowrkv: COMMERCIAL. GENERA'. uneu4rr COVERAGE PART MEWLS Bede Of Oerarrmerriel Agency Or Subdivision Or Patleet Sidnihik c City of Mittens! try le Included as Minimal l !named lath respects to General Liability per the ettschedendorsernents. Inforredon regredln orierkiete site sereauel no shown above. will be shown In trls Deolaratons A. SectionE — Who is An begs is stranded to Include se an ediUoi 1 krAired any aide or oubdtvidort or a�dian *yen h agencytBahedule, la ter 1, This sae ripples orily with moped to operators performed y tor which the Wet or grernitwMI agonoy et oubdWilari or poles won hos data a porn* or a ulforlzatios a. The !memento Offottied. to ouch "dactyl Mewed catif oxen to the aslant penned by leer, and b. If mirage provided la the siiidorkl !nand k muted Ly a oorikin* arar tee Ineurarke stibrded to au* Insured wit not be brier tun that which you we re ubed I the wired or scream* to pro de for a di 1 Mad, 03 2412, 041e 2 Th}s !nem= rasa notapply ha a.t rbi *nage or limns!� Iriisy" arising out of Performed fort Sederal ovenware. *lb or nu ; or La °8adlty Itilure Of "ptpaht��inciuded *Mk the operator* hamard`. E. With respect to the ktetaarice allturded to these tiddfilonal ktetar da, the f alowlnU is added to Section II —Limns 01 fauswasoce It % provided to the dbtlerel Insured e s corked orarova ��ta pydan Wolf the Menke* limbed Is the amount of k euranor: 1. kilned by the oarauct ore reernert; Or 2 kale* urn the applbable UM* of Insurance shown in Irk Deowragans whichever le leas arskreernetit still not bereave the applicable Uralic or harem shown In the kimonos Services Office, Inc., 2012 Lei 1 of 1 312 of 585 D1$JRED: ArmPoet Far Nib t eoQuleee POLICY $ PtP4t15E292 POLICY PERIM% Ofelet#e TO 132#0112217 011210405011 THIS ENDORSEMENT CHANIZES THE MUM. PLEASE READ 1T CAREFULLY. DESIGNATED LOCATION(S) GENERA. AGGREGATE Miff Thlo endowment =OW brealfice mimicked undarrookikednir COWbERCIAL GENERAL LIABILITY COVERAGE PART ecuSOULE bsolgueted Lotit[anls AR lesotlols„ alborihen won Miens, occupied by the north nel! urad man motred la aamnlala lie Schedule, IF sotattawn above, will be Mann it the D A. Fix al saps sly the mimed becomes %eny avow naea'I ih p y oo r� rem oeee l by moms- assino A, odd ford NI.J1L d egansto aimed by oodlobb Wet *dab out be ittilbutod DNo aBa ttssalts al mine a alrvte daebriated 'roar dart' Mown G the Schedule above: 1. A Womb Elesianalod Locellot Gieriiri Lht* IPPON is midi **AM `taoetfatr, sod that Ike Is squp to the sauna of ttst GREW Aa ste Lhdl grown In the Boas L The Clealonded Laotian swami AlienigabB Lint Is tbilmast wave) 'Dribs, awn Of NS donnas Moir q pe wn booms of 'body Inbsr or "proptaly rkSivase It d ; iirsa Serf/win' exprom war CoveREP6dnamfbisa'f the mi er A. Isouradig be IS 04 ISO tit Clem mato or "sulbr broogOt or ntssllaes tneidng dates or i. Art impels roads tandem Wrongs Al far expanses ihoil Moos tbn Seriend aliumelede Urn ter fled own. e fbe Gemini cUM down It the Dectarellees oar slue fey Isttuoe srly other d�WNW 'i� MOM In to flaheduls Mon. C me tinge shamJn ate Dookuldions far Estb ClaglariCe, To Prirsboa Rented To You sad Niter Homer. bc20 Lioitv to VG MUM Penirdi Deals - Maui wilt bee tDeo o ant toeetli0et�ti a4 b Ineunnoe 8errdoes cmcs. Ina., ZOE pope 1 of 3 Wank Mum F. Santa I thiterrn For am 313 of 585 E. For el Crane Web the Fund beam os lowly abelpatad to pay as dwba a by'oaeua' ranee" ender nwdlcd eapereses =Bled hy sedcrants under Seddon 1— Covernaps C, latch csrsrot be Minh - rand o� to operations at it s dedented 'tooa ion shoe% In the Schedule. O. above 1. #sfly peyrrrarrts made under C�avaruue A for damps or wear Ceveraga 0 ear ma neat ewes rand reduce the emoted rendebre under the Cad AMMO, UM or the Llrr whlaleevel' IS appficabia; and 8. each parricide stud nol reduce any Desk- nsted Loestlee Gsneial Amnia: Limn. P410,1012 C. Wbon ore for SWIM irbOig out of the •proms operations I ray hi plo- dded. any payments for *maps MOM of 1:0day blare air �sWeithe en reduce the Rcdt mpleted opsrstlone Ai- arso LF1nft, and not redo, the Garrard Ap- 9npets Unfit nor the Cledaneted Warden Gen- eral Apprep41:11 MIL 13. For the pewee* of We Idormant. the Den- titi bl SnnR &Odd= emended by the addition of the'Looattan• means premises Invohtlna ills rams ar commendlots,_ or premises whale connection Is Irrtarrupted onV by a street, madam, wetenray orright-of-raltof' retread. E. The Fabians of l3 mon 11 Limns Of Insur- anos mot oiheewtee meted by tine endoraeaeant shdl continue to malty as steed. C Insurance Sendeee Me, Inc.. 2008 CG as 04 0lE he 314 of 585 .0 AhogromumTO THEAGRRIcamorr SY'AND •m THE CITY OKINAL CITY AND ALPHA mazer FOR T lezutes THIS Fan AMENDMENT TO THE AORIRMENT, is tamer/ into this 206 June, 2017,-by and between to CITY OP NATIONALCEIYa manialpii1 ' Y craporadon RECITALS 17, �, CST! and this CONSULTANT crewed into an Agrencient ,�� ���CTSi1LTAc��£or expiration� on �l ano to o t of$ 014 e d an afJune 30,2017. WHEREAS, the pram dew tonand ihe Agreement to extend the Agreement for one 30, 2013 for the s to exceed tam ie wort af312p, NOW, THEREFORE,the pewee hereto agree that the 2, 2017, shall be amended to end temp aft Agreement eopi o a� March 2018 tart to axcced amount of$70„0�. 4 1 mtto mead 30. 0(3120,000. The pram linear egree that with dre Sweeping exception, each and way teal -of Agreement 2.2 3 tax& in SE *ate and a andIN WITNESS WHEREOF, the par* haeto have exceated thin Ftxt Amendnent to te APPROVED AS TO FORM: AMA P ozc FOR THE HOMELESS Bob 14013hay President By: laTief operating Officer 315 of 585 SECOND AMENDMENT TO THE AGREEMENT BY AND BETWEEN THE`CTTY OF NATIONAL CITY AND ALPHA PROJECT FOR THE HOMELESS THIS SECOND AMENDMENT TO THE AGREEMENT, is entered into this 19th day of December, 2017, by and between the CITY OF NATIONAL CITY, a municipal corporation ("CITY"), and ALPHA PROJECT FOR THE HOMELESS, a nonprofit corporation (the "CONSULTANT"), together the "Parties". RECITALS WHEREAS, the CITY and the CONSULTANT (the "PARTIES") entered into an Agreement on March 2, 2017, (the "Agreement") wherein the CONSULTANT agreed to provide outreach services for the homeless and intervention services for the not -to -exceed amount of $50,000 with an expiration date of June 30, 2017. WHEREAS,in June 2017, the PARTIES desired to enter into a First Amendment to the Agreement to extend the term of the Agreement for one year for a not to exceed amount of $120,000, for a total not to exceed Agreement amount of $170,000. WHEREAS, on June 20, 2017, the City Council adopted Resolution No. 2017-114 approving the First Amendment to the Agreement to extend the term for one year, expiring on June 30, 2018, but the not to exceed amount of the Amendment was inadvertently entered as $70,000, instead of the correct amount of $120,000. WHEREAS, to correct the amount of funds that should have been appropriated for the Agreement, the Parties desire to enter into a Second Amendment to the Agreement for the correct amount of $120,000, for a total not to exceed Agreement amount of $170,000 for the period of March 2, 2017 through June 30, 2018, as was initially intended by the PARTIES. WHEREAS, Section 5 (Compensation. and Payment) of the Agreement states that the monthly not to exceed amount is $7,140, however monthly invoicing and projection amounts have exceeded that amount. The Parties previously contemplated a monthly not to exceed amount of $10,000, which more accurately reflects the actual cost of services per month. The Parties desire to amend Section 5 of the Agreement to increase the monthly not to exceed amount from $7,140 to $10,000. NOW, THEREFORE, the parties hereto agree that the Agreement entered into on March 2, 2017, as amended shall be for a total not to exceed Agreement amount of $170,000 for the period of March 2, 2017 through June 30, 2018, and to amend Section 5 (Compensation and Payment) to increase the monthly not to exceed amount from $7,140 to $10,000. The parties further agree that with the foregoing exceptions, each and every term and provision of the Agreement dated March 2, 2017 shall remain in full force and effect, 316 of 585 IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the Agreement on the date and year first above written. CITY OF NATIONAL CITY ALPHA PROJECT FOR THE HOMELESS By: By: Ron Morrison, Mayor Bob McElroy President APPROVED AS TO FORM: By: Angil P. Morris -Jones Chief Operating Officer City Attorney Second Amendment to 2017 Agreement -2 Amy Gonyean City of Naonp..1 City a d Alpha Project for the Homeless 317 of 585 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND ALPHA PROJECT FOR THE HOMELESS TO CORRECT THE TOTAL NOT TO EXCEED AMOUNT TO BE $170,000 FOR THE PERIOD OF MARCH 2, 2017 THROUGH JUNE 30, 2018, TO PROVIDE OUTREACH SERVICES FOR THE HOMELESS AND INTERVENTION SERVICES, AND TO ADJUST THE MONTHLY NOT TO EXCEED AMOUNT TO $10,000 FOR THE TERM OF THE AGREEMENT, ENDING JUNE 30, 2018 WHEREAS, the City and Alpha Project for the Homeless, a nonprofit corporation, ("Alpha Project") entered into an Agreement on March 2, 2017, wherein Alpha Project agreed to provide outreach services for the homeless and intervention services for the not -to -exceed amount of $50,000 with an expiration date of June 30, 2017; and WHEREAS, on June 20, 2017, the City Council adopted Resolution No. 2017- 114 approving the First Amendment to the Agreement to extend the term for one year, expiring on June 30, 2018, but the not to exceed amount of the Amendment was inadvertently entered as $70,000, instead of the correct amount of $120,000; and WHEREAS, to correct the amount of funds that should have been appropriated for the Agreement, a Second Amendment to the Agreement is necessary for the correct amount of $120,000, for a total not to exceed Agreement amount of $170,000, for the period of March 2, 2017 through June 30, 2018, as intended in the First Amendment; and WHEREAS, Section 5 (Compensation and Payment) of the Agreement states that the monthly not to exceed amount is $7,140, however monthly invoicing and projection amounts have exceeded that amount. The Parties previously contemplated a monthly not to exceed amount of $10,000, which more accurately reflects the actual cost of services per month. The Parties desire to amend Section 5 of the Agreement to increase the monthly not to exceed amount from $7,140 to $10,000. NOW, THEREFORE, the parties hereto agree that the Agreement entered into on March 2, 2017, as amended shall be for a total not to exceed Agreement amount of $170,000 for the period of March 2, 2017 through June 30, 2018, and to amend Section 5 (Compensation and Payment) to increase the monthly not to exceed amount from $7,140 to $10,000. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the Mayor to execute a Second Amendment to the Agreement between the City of National City and Alpha Project for the Homeless to correct the total not to exceed amount to be $170,000 for the period of March 2, 2017 through June 30, 2018, to provide outreach services for the homeless and intervention services, and to adjust the monthly not to exceed amount to $10,000 for the term of the Agreement, ending June 30, 2018. [Signature Page to Follow] 318 of 585 Resolution No. 2017 — Page Two PASSED and ADOPTED this 19' day of December, 2017. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ron Morrison, Mayor 319 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 320 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 an agreement with a mutual indemnity and hold harmless provision with Phase II Systems dba Public Agency Retirement Services for pension trust administration sery 320 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO.: ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute an agreement with a mutual indemnity and hold harmless provision with Phase II Systems dba Public Agency Retirement Services for pension trust administration services for the period December 20, 2017 through December 31, 2020 and authorizing the City Manager to execute up to two additional one-year extensions. PREPARED BY: Mark Roberts, Director of Finance PHONE: 619-336-4330 EXPLANATION: See attached staff report. DEPARTMENT: Finance APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. See attached staff report. APPROVED: LWAXa FINANCE APPROVED: MIS ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION FINAL ADOPTION STAFF RECOMMENDATION: Adopt the resolution, authorizing the Mayor to execute an agreement with a mutual indemnity and hold harmless provision with Phase II Systems dba Public Agency Retirement Services for pension trust administration services for the period December 20, 2017 through December 31, 2020 and authorizing the City Manager to execute up to two additional one-year extensions. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Staff report 2. Phase II Systems dba Public Agency Retirement Services Agreement 3. Resolution 321 of 585 -CALIFORNIA NATIONAL C'I(TY Me V �11 #C/64.ORATEDJ City Council Staff Report December 19, 2017 ITEM Resolution of the City Council of the City of National City authorizing the Mayor to execute an agreement with a mutual indemnity and hold harmless provision with Phase II Systems dba Public Agency Retirement Services for pension trust administration services for the period December 20, 2017 through December 31, 2020 and authorizing the City Manager to execute up to two additional one-year extensions. BACKGROUND The total net pension liability of the City's pension plans as of their last valuation date, June 30, 2016, was $97.8 million. At its regular meeting of May 16, 2017, the City Council directed staff to establish an irrevocable supplemental pension trust with a total initial contribution of up to $1 million to prefund the City's pension obligation. On July 19, 2017, the City issued a request for information ("Rfl") seeking the services of a firm with pension trust administration services experience to assist the City with the establishment of the pension trust and management of its assets. REQUEST FOR INFORMATION PROCESS As noted above, the City issued an Rfl for pension trust administration services on July 19, 2017. The Rfl was sent to four municipal advisory firms and was posted on the City's and the California Society of Municipal Finance Officers (CSMFO) websites. Responses to the Rfl were due by 5:00 pm on August 2, 2017. The City received two (2) proposals in response to the Rfl. The firms submitting responses, listed in alphabetical order, are: Keenan & Associates; Phase II Systems dba Public Agency Retirement Services ("PARS") After reviewing and considering each response, staff determined PARS would best meet the pension trust administration services needs of the City. PARS (from submitted response) PARS, which currently administers the City's executive and part-time employee alternative retirement program, is an independent, privately held corporation, which has been designing and administering niche retirement plan and trust solutions exclusively for public agencies for the 322 of 585 Page 2 Resolution of the City Council of the City of National City authorizing the Mayor to execute an agreement with a mutual indemnity and hold harmless provision with Phase II Systems dba Public Agency Retirement Services for pension trust administration services for the period December 20, 2017 through December 31, 2020 and authorizing the City Manager to execute up to two additional one-year extensions. December 19, 2017 last 33 years. Its core mission is to offer local governments control and flexibility to meet their individual needs, by specializing in supplemental pension trusts, postemployment health care trusts, retirement/separation incentive plans, alternatives to Social Security plans, and other defined benefit and defined contribution plans. Its primary business functions are retirement plan and trust design, analysis, administration, recordkeeping, compliance, and consulting. Since 1984, PARS has been a pioneer in the design and administration of retirement plans and trusts solely for public agencies. Throughout this time, it has experienced continual corporate growth and has built a long track record of service which includes the following key accomplishments: • administration of over 1,400 plans for more than 850 public entities; • development of the first multiple -employer IRS Section 115 trust program for pension prefunding with more than 90 California public agencies joining the program; • ongoing servicing for over 375,000 public employees. Since developing a Section 115 trust program in 2004, PARS has developed a number of Section 115 trusts (including the one proposed for the City which allows for the combined pre -funding of pension and other postemployment benefit {OPEB} liabilities) which include over 250 member accounts and over $1.4 billion in assets under management. HighMark, operating as a discretionary investment manager, would provide active portfolio management for the City's account. HighMark serves over 500 PARS clients, including all of its city, county, and special district Section 115 pension prefunding clients. US Bank, the largest trustee for pension and OPEB prefunding in the nation, would serve as trustee and custodian for the City's account. US Bank, which serves all of PARS' 850+ public agency clients, has over $3 billion in Section 115 trust assets under administration, and will act in a fiduciary role to safeguard the City's assets. MUTUAL INDEMNITY AND HOLD HARMLESS PROVISION During negotiations, PARS requested an agreement which includes a mutual indemnity and hold harmless provision. City Council Policy # 1001 provides the Council discretionary authority to enter into agreements with such a provision when in the best interest of both parties. Upon discussion with staff regarding the importance of a pension trust to the fiscal sustainability of the City and the nature of the services to be provided under the proposed agreement, it is the City Attorney's opinion that the provision is in the best interest of both parties. RECOMMENDATION Staff recommends the City Council authorize the Mayor to execute the agreement with a mutual indemnity and hold harmless provision with Phase II Systems dba Public Agency Retirement 323 of 585 Page 3 Resolution of the City Council of the City of National City authorizing the Mayor to execute an agreement with a mutual indemnity and hold harmless provision with Phase II Systems dba Public Agency Retirement Services for pension trust administration services for the period December 20, 2017 through December 31, 2020 and authorizing the City Manager to execute up to two additional one-year extensions. December 19, 2017 Services for pension trust administration services for the period December 20, 2017 through December 31, 2020 and authorizing the City Manager to execute up to two additional one-year extensions. FISCAL IMPACT PARS' annual pension trust administration fees will be based upon the average balance of the pension trust plan's assets, in accordance with the following schedule: Plan Assets Annual Rate $0 to $10,000,000 $10,000,001 to $15,000,000 $15,000,001 to $50,000,000 $50,000,001 and above 0.25% 0.20% 0.15% 0.10% Trustee and investment management fees are not included in PARS' fees. These fees, which are paid to US Bank, will also be based upon the average balance of the pension trust plan's assets, in accordance with the following schedule: Plan Assets Annual Rate $0 to $5,000,000 0.35% $5,000,001 to $10,000,000 0.25% $10,000,001 to $15,000,000 0.20% $15,000,001 to $50,000,000 0.15% $50,000,001 and above 0.10% All fees will be deducted from the trust plan's assets. The initial balance approved for deposit in the trust approved by the Council is $1 million. At this level of assets, the total approximate annual fiscal impact, based upon the above schedules, will be approximately $6,000; however, since the fees are calculated on a percentage basis, they will fluctuate over time, increasing as the plan's assets increases and decreasing should the balance decrease (as the result of investment gains and losses). Future amounts to be recommended for deposit into the pension trust will be dependent upon cash flow analyses conducted by City staff. ATTACHMENTS Phase II Systems dba Public Agency Retirement Services Agreement Resolution 324 of 585 AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND PHASE II SYSTEMS D.B.A. "PUBLIC AGENCY RETIREMENT SERVICES" THIS AGREEMENT is entered into on this 20th day of December, 2017, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and PHASE II SYSTEMS, a California corporation, d.b.a. "Public Agency Retirement Services" (the "CONSULTANT"). RECITALS WHEREAS, the CITY desires to employ a consultant to provide comprehensive trust administration services for the CITY'S irrevocable supplemental pension trust (the "Trust"). WHEREAS, the CITY has determined that the CONSULTANT is an administrator of irrevocable supplemental pension trusts and is qualified by experience and ability to perform the services desired by the CITY, and the CONSULTANT is willing to perform such services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF CONSULTANT. The CITY agrees to engage the CONSULTANT to administer an irrevocable supplemental pension trust on behalf of the CITY, and to perform all other administration services related thereto as described in the attached Exhibits "A" and "C", and the CONSULTANT agrees to perform the services set forth here in accordance with all terms and conditions contained herein. 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 20, 2017. The duration of this Agreement is for the period of December 20, 2017 through December 31, 2020. This Agreement may be extended by mutual agreement upon the same terms and conditions for up to two (2) additional one-year terms. Any extension of this Agreement must be approved in writing by the City Manager. 3. SCOPE OF SERVICES. The CONSULTANT will perform those pension trust administration services as set forth in the attached Exhibits "A" and "C." Once supplied with the information needed to execute its duties under Exhibits "A" and "C," the CONSULTANT shall be responsible for all research and reviews related to the work. The CONSULTANT shall not rely on personnel of the CITY for any information not described in Exhibits "A" and "C." 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 325 of 585 this Agreement. Upon doing so, the CITY and the CONSULTANT agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction or increase in the compensation associated with said change in services. 4. PROJECT COORDINATION AND SUPERVISION. The Director of Finance hereby is designated as the Plan Administrator for the CITY and will monitor the progress and execution of this Agreement. The CONSULTANT shall assign a single Project Director to provide supervision and have overall responsibility for the progress and execution of this Agreement for the CONSULTANT. Mitch Barker thereby is designated as the Project Director for the CONSULTANT. 5. COMPENSATION AND PAYMENT. The compensation for the CONSULTANT shall be based upon the schedule and formula set forth in Exhibit "B." Compensation due to the CONSULTANT shall be deducted from the Trust's assets. The CONSULTANT shall submit a monthly statement to the CITY documenting the amount deducted from the Trust. The total cost for all work described in this Agreement shall not exceed those rates listed in Exhibit `B" without prior written authorization from the CITY. The CONSULTANT shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred, and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CITY, and for furnishing of copies to the CITY, if requested. 6. ACCEPTABILITY OF WORK. The CITY shall decide any and all questions which may arise as to the quality or acceptability of the services performed and the manner of performance, the acceptable completion of this Agreement, and the amount of compensation due. In the event the CONSULTANT and the CITY cannot agree to the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONSULTANT in this Agreement, the CITY or the CONSULTANT shall give to the other written notice. Within ten (10) business days, the CONSULTANT and the CITY shall each prepare a report which supports their position and file the same with the other party. The CITY shall, with reasonable diligence, determine the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONSULTANT. 7. INFORMATION FURNISHED TO CONSULTANT. The CONSULTANT will provide those services required under this Agreement if the CITY provides the CONSULTANT all information described in Exhibit "C" ("DATA"). The CITY shall be responsible for the accuracy, content, and completeness of the DATA so the CONSULTANT may rely upon such information. CONSULTANT will inform CITY, in writing, how much time CONSULTANT reasonably needs to review the DATA before CONSULTANT may complete any of its services required under this Agreement. The CITY must provide the DATA to CONSULTANT within the reasonable timeframe identified by CONSULTANT. 8. 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 Standard Agreement Revised July 2017 Page 2 of 11 City of National City and Phase II Systems, dba Public Agency Retirement Services 326 of 585 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 the 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 15, 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. 9. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners, or joint venturers with one another. Neither the CONSULTANT nor the CONSULTANT'S employees are employees of the CITY, and are not entitled to any of the rights, benefits, or privileges of the CITY'S employees, including but not limited to retirement, medical, unemploy- ment, or workers' compensation insurance. This Agreement contemplates the personal services of the CONSULTANT and the CONSULTANT'S employees, and it is recognized by the parties that a substantial inducement to the CITY for entering into this Agreement was, and is, the professional reputation 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 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 the CONSULTANT with its subconsultant(s) shall require the subconsultant(s) to adhere to the applicable terms of this Agreement. 10. CONTROL. Neither the CITY, nor its officers, agents, or employees shall have any control over the conduct of the CONSULTANT or any of the CONSULTANT'S employees, except as set forth in this Agreement. The CONSULTANT, or the CONSULTANT'S agents, servants, or employees are not in any manner agents, servants, or employees of the CITY. The CONSULTANT and its agents, servants, and employees are wholly independent from the CITY, and the CONSULTANT'S obligations to the CITY are solely prescribed by this Agreement. 11. COMPLIANCE WITH APPLICABLE LAW. The CONSULTANT, in the performance of the services to be provided herein, shall comply with all applicable state and Standard Agreement Revised July 2017 Page 3 of 11 City of National City and Phase II Systems, dba Public Agency Retirement Services 327 of 585 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. 12. 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. 13. STANDARD OF CARE. A. The CONSULTANT, in performing any services under this Agreement, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the CONSULTANT'S trade or profession currently practicing under similar conditions and in similar locations. The CONSULTANT shall take all special precautions necessary to protect the CONSULTANT'S employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site. B. Unless disclosed in writing prior to the date of this Agreement, the CONSULTANT warrants to the CITY that it is not now, nor has it for the five (5) years preceding, been debarred by a governmental agency or involved in debarment, arbitration or litigation proceedings concerning the CONSULTANT'S professional performance or the furnishing of materials or services relating thereto. C. The CONSULTANT is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the project the CONSULTANT has been retained to perform, within the time requirements of the CITY, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONSULTANT has notified the CITY otherwise, the CONSULTANT warrants that all products, materials, processes or treatments identified in the project documents prepared for the CITY are reasonably commercially available. Any failure by the CONSULTANT to use due diligence under this sub -section will render the CONSULTANT liable to the CITY for any increased costs that result from the CITY'S later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time. 14. NON-DISCRIMINATION PROVISIONS. The CONSULTANT shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONSULTANT will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONSULTANT agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause. Standard Agreement Revised July 2017 Page 4 of 11 City of National City and Phase II Systems, dba Public Agency Retirement Services 328 of 585 15. 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 15, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the CONSULTANT, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONSULTANT without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONSULTANT by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. The CONSULTANT shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this Agreement without the prior written consent of the CITY. In its performance hereunder, the CONSULTANT shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. The CONSULTANT shall be liable to the CITY for any damages caused by breach of this condition, pursuant to the provisions of Section 16. 16. INDEMNIFICATION AND HOLD HARMLESS. The CONSULTANT and CITY agree to defend, indemnify and hold each other and their respective officers, officials, agents, employees, and volunteers harmless 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 (collectively "CLAIMS"), resulting from or arising out of the CONSULTANT'S or the CITY'S performance or other obligations under this Agreement. The CONSULTANT and CITY shall indemnify each other only in proportion and to the extent such CLAIMS are caused by, or result from, the negligent or intentional acts or omissions of the indemnifying party, their respective officers, officials, agents, employees, and volunteers.The CITY and the CONSULTANT will cooperate reasonably in the defense of any action, and the indemnifying party shall employ competent counsel, reasonably acceptable to the indemnified party. The indemnity, defense, and hold harmless obligations contained herein shall survive the termination of this Agreement for any alleged or actual omission, act, error or negligence under this Agreement that occurred during the term of this Agreement. 17. WORKERS' COMPENSATION. The CONSULTANT shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Labor Code and all amendments thereto; and all similar State or federal acts or laws applicable; and shall indemnify, and hold harmless the CITY and its officers, employees, and volunteers from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description, including reasonable attorney's fees and defense costs presented, brought or recovered against the CITY or its officers, employees, or volunteers, for or on account of any Standard Agreement Revised July 2017 Page 5 of 11 City of National City and Phase II Systems, dba Public Agency Retirement Services 329 of 585 liability under any of said acts which may be incurred by reason of any work to be performed by the CONSULTANT under this Agreement. 18. INSURANCE. The CONSULTANT, at its sole cost and expense, shall purchase and maintain, and shall require its subconsultant(s), when applicable, to purchase and maintain throughout the term of this Agreement, the following insurance policies: A. ® If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence. B. Automobile Insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include owned, non -owned, and hired vehicles ("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 the 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 the CONSULTANT has no employees subject to the California Workers' Compensation and Labor laws, the CONSULTANT shall execute a Declaration to that effect. Said Declaration shall be provided to the CONSULTANT by the CITY. E. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, officials, employees, and volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days' prior written notice to the CITY's Risk Manager, at the address listed in subsection G below, of cancellation or material change. If any policy required by this Agreement is cancelled due to non-payment, CONSULTANT must provide 10 (ten) days' notice accompanied by the reason for such 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: Standard Agreement Revised July 2017 City of National City c/o Risk Manager 1243 National City Boulevard Page 6 of 11 City of National City and Phase II Systems, dba Public Agency Retirement Services 330 of 585 National City, CA 91950-4397 H. Insurance shall be written with only insurers authorized to conduct business in California that hold a current policy holder's alphabetic and financial size category rating of not less than A:VII according to the current Best's Key Rating Guide, or a company of equal financial stability that is approved by the CITY'S Risk Manager. In the event coverage is provided by non -admitted "surplus lines" carriers, they must be included on the most recent California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements. I. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY'S Risk Manager. If the CONSULTANT does not keep all 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. 19. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out -of - court settlement, shall be entitled to have and recover of and from the other party all reasonable costs and expenses of suit, including reasonable attorneys' fees. For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorney's fees to the prevailing party if other than the CITY shall, in addition, be limited to the amount of attorney's fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual amount of attorney's fees incurred by the prevailing party. 20. TERMINATION. A. This Agreement may be terminated with or without cause by the CITY. Termination without cause shall be effective only upon 60-day's written notice to the CONSULTANT. During said 60-day period the CONSULTANT shall perform all services in accordance with this Agreement. B. This Agreement may also be terminated immediately by the CITY for cause in the event of a material breach of this Agreement, misrepresentation by the CONSULTANT in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the CITY. Standard Agreement Revised July 2017 Page 7 of 11 City of National City and Phase II Systems, dba Public Agency Retirement Services 331 of 585 C. Termination with or without cause shall be effected by delivery of written Notice of Termination to the CONSULTANT as provided for herein. D. In the event of termination, all finished or unfinished memoranda, reports, maps, drawings, plans, specifications, and other documents prepared by the CONSULTANT, whether paper or electronic, shall immediately become the property of and be delivered to the CITY, and the CONSULTANT shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CITY by the CONSULTANT'S breach, if any. Thereafter, ownership of said written material shall vest in the CITY all rights set forth in Section 8. E. The CITY further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONSULTANT; (2) a reorganization of the CONSULTANT for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONSULTANT. 21. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To CITY: Mark Roberts Director of Finance Department of Finance City of National City 1243 National City Boulevard National City, CA 91950-4397 To CONSULTANT: Daniel Johnson President PARS 4350 Von Karman Avenue, Suite 100 Newport Beach, CA 92660 Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, Standard Agreement Revised July 2017 Page 8 of 11 City of National City and Phase II Systems, dba Public Agency Retirement Services 332 of 585 demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty- eight (48) hours by letter mailed or delivered as specified in this Section. 22. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this Agreement, the CONSULTANT shall not perform services of any kind for any person or entity whose interests conflict in any way with those of the City of National City. The CONSULTANT also agrees not to specify any product, treatment, process or material for the project in which the CONSULTANT has a material financial interest, either direct or indirect, without first notifying the CITY of that fact. The CONSULTANT shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The CONSULTANT shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the CITY in which the CONSULTANT has a financial interest as defined in Government Code Section 87103. The CONSULTANT represents that it has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the CITY. ❑ If checked, the CONSULTANT shall comply with all of the reporting requirements of the Political Reform Act and the National City Conflict of Interest Code. Specifically, the CONSULTANT shall file a Statement of Economic Interests with the City Clerk of the City of National City in a timely manner on forms which the CONSULTANT shall obtain from the City Clerk. The CONSULTANT shall be strictly liable to the CITY for all damages, costs or expenses the CITY may suffer by virtue of any violation of this Section 22 by the CONSULTANT. 23. PREVAILING WAGES. State prevailing wage rates may apply to work performed under this Agreement. State prevailing wages rates apply to all public works contracts as set forth in California Labor Code, including but not limited to, Sections 1720,1720.2, 1720.3, 1720.4, and 1771. The CONSULTANT is solely responsible to determine if State prevailing wage rates apply and, if applicable, pay such rates in accordance with all laws, ordinances, rules, and regulations. 24. 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. Standard Agreement Revised July 2017 Page 9 of 11 City of National City and Phase II Systems, dba Public Agency Retirement Services 333 of 585 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 CITY, both the insurance provisions in Section 18 and the indemnification and hold harmless provision of Section 16 of this Agreement. 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. Standard Agreement Revised July 2017 Page 10 of 11 City of National City and Phase II Systems, dba Public Agency Retirement Services 334 of 585 CITY OF NATIONAL CITY PHASE II SYSTEMS, A CALIFORNIA CORPORATION D.B.A. "PUBLIC AGENCY RETIREMENT SERVICES" By: Leslie Deese, City Manager By: APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney aniel , ohnson (Print) President By: Tod Hammeras Roberto M. Contreras Deputy City Attorney Standard Agreement Revised July 2017 (Print) Chief Financial Officer Page 11 of 11 City of National City and Phase II Systems, dba Public Agency Retirement Services 335 of 585 EXHIBIT A PUBLIC AGENCY RETIREMENT SERVICES SCOPE OF SERVICES The CONSULTANT will provide the following services for the City of National City's irrevocable supplemental pension trust plan ("Plan"): 1. Plan Installation Services: A. Meeting with appropriate CITY personnel to discuss Plan provisions, implementation timelines, the actuarial valuation process, funding strategies, benefit communication strategies, data reporting, and submission requirements for contributions, reimbursements, and distributions; B. Providing necessary analysis and advisory services to finalize the elements of Paragraph 1(A) of this Exhibit A; C. Providing all documents needed to create the Plan for review and approval by the City Attorney. Resulting final Plan documents must be approved by the CITY before the commencement of Plan Administration Services outlined in Paragraph 2 below. 2. Plan Administration Services: A. Monitoring the receipt of Plan contributions made by the CITY to the trustee of the Trust ("Trustee"), based upon information received from the CITY and the Trustee; B. Performing periodic accounting of Plan assets, reimbursements/distributions, and investment activity, based upon information received from the CITY and/or Trustee; C. Coordinating the processing of distribution payments pursuant to authorized direction by the CITY, and the provisions of the Plan, and, to the extent possible, based upon CITY - provided Data; D. Coordinating actions with the Trustee as directed by the Plan Administrator within the scope the Agreement; E. Preparing and submitting a monthly report of Plan activity to the CITY, unless directed by the CITY otherwise; F. Conducting an annual in -person client review to provide a full administrative and investment review of the Plan and to ensure the CITY'S ongoing satisfaction with its participation in the Plan. G. Conducting in -person or over -the -phone meetings more frequently, if requested by the CITY. H. Providing updates of the Plan to the City Council during one of its public meetings, if requested by the CITY. I. Preparing and submitting an annual report of Plan activity to the CITY; Page 1 of 2 336 of 585 J. Facilitating actuarial valuation updates and funding modifications for compliance with GASB 45/75, if prefunding OPEB obligations; K. Coordinating periodic audits of the Plan; L. Monitoring Plan and Trust compliance with federal and state laws. 3. The CITY acknowledges that PARS is not licensed to provide, and does not offer tax, accounting, legal, investment, or actuarial advice. Page 2 of 2 337 of 585 EXHIBIT B PUBLIC AGENCY RETIREMENT SERVICES RATES TO PERFORM PENSION TRUST ADMINISTRATION SERVICES CONSULTANT will be compensated for performance of Services, as described in Exhibit A based upon the following schedule: ANNUAL ASSET FEE For Plan Asset Balances from $0 to $10,000,000 $10,000,001 to $15,000,000 $15,000,001 to $50,000,000 $50,000,001 and above Annual Rate 0.25% 0.20% 0.15% 0.10% Annual Rates are prorated and paid monthly. The annual asset fee shall be calculated by the following formula: Annual Rate divided by 12 (months of the year) multiplied by the Plan asset balance at the end of the month. TRUSTEE & INVESTMENT MANAGEMENT FEES Trustee and investment management fees are not included in the annual asset fees stated above. Trustee and investment management services are provided under a separate agreement with US Bank, and trustee and investment management fees are paid to US Bank. These fees include investment policy development, asset allocation recommendations, asset management, and all custodial services and are based upon the following schedule: For Plan Asset Balances from $0 to $5,000,000 $5,000,001 to $10,000,000 $10,000,001 to $15,000,000 $15,000,001 to $50,000,000 $50,000,001 and above Annual Rate 0.35% 0.25% 0.20% 0.15% 0.10% Annual Rates are prorated and paid monthly. Annual trustee and investment management fees shall be calculated by the following formula: Annual Rate divided by 12 (months of the year) multiplied by the Plan asset balance at the end of the month. Both the annual asset fees and trustee and investment management fees shall be deducted from Plan assets. Page 1 of 1 338 of 585 EXHIBIT C PUBLIC AGENCY RETIREMENT SERVICES DATA REQUIREMENTS CONSULTANT will provide all services required under this Agreement upon receiving the following information: 1 Executed legal documents: A. certified resolution B. adoption agreement to the Plan C. trustee investment forms 2. Contribution — completed Contribution Transmittal Form signed by the Plan Administrator (or authorized designee) which contains the following information: A. agency name B. contribution amount C. contribution date D. contribution method (check, ACH, wire) 3. Distribution — completed Transfer/Payment/Reimbursement Form signed by the Plan Administrator (or authorized designee) which contains the following information: A. agency name B. payment reimbursement/distribution amount C. applicable statement date D. copy of applicable premium, claim, statement, warrant, and/or administrative expense evidencing payment E. signed certification of reimbursement/distribution from the Plan Administrator (or authorized designee) 4. Other information pertinent to the CONSULTANT'S services as reasonably requested by the CONSULTANT and the CITY'S actuarial provider. Page 1 of 1 339 of 585 ACORO° CERTIFICATE OF LIABILITY INSURANCE 4....---- DATE(MM/DDYYYY) 11 /28/2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Risk Strategies Company 2040 Main Street, Suite 450 Irvine, CA 92614 www.risk-strategies.com CA DOI License No. 0F06675 CONTACT NAME: Risk Strategies Company PHONE FAX (A/C, No, Ext): 949-242-9240 (A/C. No): E-MAIL ADDRESS: syoung % risk-strategies.com INSURER(S) AFFORDING COVERAGE NAIC # INSURER A: Sentinel Insurance Co. 11000 INSURED Phase II Systems dba: PARS 4350 Von Karman Ave., Ste 100 Newport Beach CA 92660 INSURER B: Travelers Property Casualty Co of America 25674 INSURERC: Lloyds INSURERD: INSURER E : INSURER F : COVERAGES CERTIFICATE NUMBER: 38993577 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTRIPOLICY TYPE OF INSURANCE INSD WVD POLICY NUMBER EFF (MIWDD/Y1rYY) POLICY EXP (MMR1D/Y1rYY) LIMITS A / COMMERCIAL GENERAL LIABILITY / / 72SBAAC2429 5/8/2017 5/8/2018 EACH OCCURRENCE $ $2,000,000 CLAIMS -MADE ✓ OCCUR DAMAGE TO RENTED PREMISES (Ea occurrence) $ $1,000,000 MED EXP (Any one person) $ $10,000 PERSONAL & ADV INJURY $ $2,000,000 GEN'L AGGREGATE ✓ LIMIT APPLIES JET PER: LOC GENERAL AGGREGATE $ $4,000,000 PRODUCTS - COMP/OP AGG $ $4,000,000 $ A AUTOMOBILE ✓ LIABILITY ANY AUTO OWNED AUTOS ONLY AUTOS ONLY / SCHEDULED AUTOS AUTOS ONLY 72SBAAC2429 5/8/2017 5/8/2018 COMBIiJE SINGLE LIMIT $$2,000,000 BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per a cident) $ $ UMBRELLA LIAB EXCESS LIAB OCCUR CLAIMS -MADE EACH OCCURRENCE $ AGGREGATE $ DED RETENTION $ $ B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANYPROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBEREXCLUDED? (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below Y/ N N / A / UB2J193983 6/1/2017 6/1/2018 ,/ STATUTE ERH E.L. EACH ACCIDENT $ $1,000,000 E.L. DISEASE - EA EMPLOYEE $ $1,000,000 E.L. DISEASE - POLICY LIMIT $ $1,000,000 C Professional Liability LDUSA1704508 7/30/2017 7/30/2018 Per Claim: $2,000,000 Aggregate: $2,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Projects as on file with the insured including but not limited to: Trust administration services related to the Public Agencies Post -Employment Benefits Trust. The City of National City, its officers, employees, volunteers and agents are named as additional insureds and primary/non-contributory clause applies to the general liability policy and a waiver of subrogation applies to the general liability and work comp policies -see attached endorsements. CERTIFICATE HOLDER CANCELLATION City of National City c/o Risk Manager 1243 National City Blvd. National City CA 91950-4397 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF. NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE Michael Christian © 1988-2015 ACORD CORPORATION. All rights reserved. ared marks of ACORD ACORD 25 (2016/03) The ACORD name anc 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 EY 340 of 585 72SBAAC2429 BUSINESS LIABILITY COVERAGE FORM 2. Applicable To Medical Expenses Coverage We will not pay expenses for "bodily injury": a. Any Insured To any insured, except "volunteer workers". b. Hired Person To a person hired to do work for or on behalf of any insured or a tenant of any insured. c. Injury On Normally Occupied Premises To a person injured on that part of premises you own or rent that the person normally occupies. d. Workers' Compensation And Similar Laws To a person, whether or not an "employee" of any insured, if benefits for the "bodily injury" are payable or must be provided under a workers' compensation or disability benefits law or a similar law. e. Athletics Activities To a person injured while practicing, instructing or participating in any physical exercises or games, sports or athletic contests. f. Products -Completed Operations Hazard Included with the "products -completed operations hazard". Business Liability Exclusions Excluded under Business Liability Coverage. C. WHO IS AN INSURED 1. If you are designated in the Declarations as: a. An individual, you and your spouse are insureds, but only with respect to the conduct of a business of which you are the sole owner. b. A partnership or joint venture, you are an insured. Your members, your partners, and their spouses are also insureds, but only with respect to the conduct of your business. c. A limited liability company, you are an insured. Your members are also insureds, but only with respect to the conduct of your business. Your managers are insureds, but only with respect to their duties as your managers. d. An organization other than a partnership, joint venture or limited liability company, you are an insured. Your "executive officers" and directors are insureds, but only with respect to their duties as your officers or directors. Your stockholders are also insureds, but only with respect to their liability as stockholders. g• e. A trust, you are an insured. Your trustees are also insureds, but only with respect to their duties as trustees. 2. Each of the following is also an insured: a. Employees And Volunteer Workers Your "volunteer workers" only while performing duties related to the conduct of your business, or your "employees", other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "employees" or "volunteer workers" are insureds for: (1) "Bodily injury" or "personal and advertising injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), or to a co -"employee" while in the course of his or her employment or performing duties related to the conduct of your business, or to your other "volunteer workers" while performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co - "employee" or that "volunteer worker" as a consequence of Paragraph (1)(a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in Paragraphs (1)(a) or (b) above; or (d) Arising out of his or her providing or failing to provide professional health care services. If you are not in the business of providing professional health care services, Paragraph (d) does not apply to any nurse, emergency medical technician or paramedic employed by you to provide such services. (2) "Property damage" to property: (a) Owned, occupied or used by, Page 10 of 24 341 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Form SS 00 08 04 05 BUSINESS LIABILITY COVERAGE FORM (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by you, any of your "employees", "volunteer workers", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). b. Real Estate Manager Any person (other than your "employee" or "volunteer worker"), or any organization while acting as your real estate manager. c. Temporary Custodians Of Your Property Any person or organization having proper temporary custody of your property if you die, but only: (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. d. Legal Representative If You Die Your legal representative if you die, but only with respect to duties as such. That representative will have all your rights and duties under this insurance. e. Unnamed Subsidiary Any subsidiary and subsidiary thereof, of yours which is a legally incorporated entity of which you own a financial interest of more than 50% of the voting stock on the effective date of this Coverage Part. The insurance afforded herein for any subsidiary not shown in the Declarations as a named insured does not apply to injury or damage with respect to which an insured under this insurance is also an insured under another policy or would be an insured under such policy but for its termination or upon the exhaustion of its limits of insurance. 3. Newly Acquired Or Formed Organization Any organization you newly acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain financial interest of more than 50% of the voting stock, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 180th day after you acquire or form the organization or the end of the policy period, whichever is earlier; and b. Coverage under this provision does not apply to: (1) "Bodily injury" or "property damage" that occurred; or (2) "Personal and advertising injury" arising out of an offense committed before you acquired or formed the organization. 4. Operator Of Mobile Equipment With respect to "mobile equipment" registered in your name under any motor vehicle registration law, any person is an insured while driving such equipment along a public highway with your permission. Any other person or organization responsible for the conduct of such person is also an insured, but only with respect to liability arising out of the operation of the equipment, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with respect to: a. "Bodily injury" to a co -"employee" of the person driving the equipment; or b. "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision. 5. Operator of Nonowned Watercraft With respect to watercraft you do not own that is less than 51 feet long and is not being used to carry persons for a charge, any person is an insured while operating such watercraft with your permission. Any other person or organization responsible for the conduct of such person is also an insured, but only with respect to liability arising out of the operation of the watercraft, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with respect to: a. "Bodily injury" to a co -"employee" of the person operating the watercraft; or b. "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision. 6. Additional Insureds When Required By Written Contract, Written Agreement Or Permit The person(s) or organization(s) identified in Paragraphs a. through f. below are additional insureds when you have agreed, in a written Form SS 00 08 04 05 342 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Page 11 of 24 BUSINESS LIABILITY COVERAGE FORM contract, written agreement or because of a permit issued by a state or political subdivision, that such person or organization be added as an additional insured on your policy, provided the injury or damage occurs subsequent to the execution of the contract or agreement, or the issuance of the permit. A person or organization is an additional insured under this provision only for that period of time required by the contract, agreement or permit. However, no such person or organization is an additional insured under this provision if such person or organization is included as an additional insured by an endorsement issued by us and made a part of this Coverage Part, including all persons or organizations added as additional insureds under the specific additional insured coverage grants in Section F. — Optional Additional Insured Coverages. a. Vendors Any person(s) or organization(s) (referred to below as vendor), but only with respect to "bodily injury" or "property damage" arising out of "your products" which are distributed or sold in the regular course of the vendor's business and only if this Coverage Part provides coverage for "bodily injury" or "property damage" included within the "products -completed operations hazard". (1) The insurance afforded to the vendor is subject to the following additional exclusions: This insurance does not apply to: (a) "Bodily injury" or "property damage" for which the vendor is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the vendor would have in the absence of the contract or agreement; (b) Any express warranty unauthorized by you; (c) Any physical or chemical change in the product made intentionally by the vendor; (d) Repackaging, except when unpacked solely for the purpose of inspection, demonstration, testing, or the substitution of parts under instructions from the manufacturer, and then repackaged in the original container; (e) Any failure to make such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products; (f) Demonstration, installation, servicing or repair operations, except such operations performed at the vendor's premises in connection with the sale of the product; Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or ingredient of any other thing or substance by or for the vendor; or (h) "Bodily injury" or "property damage" arising out of the sole negligence of the vendor for its own acts or omissions or those of its employees or anyone else acting on its behalf. However, this exclusion does not apply to: (i) The exceptions contained in Subparagraphs (d) or (f); or (ii) Such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products. (2) This insurance does not apply to any insured person or organization from whom you have acquired such products, or any ingredient, part or container, entering into, accompanying or containing such products. b. Lessors Of Equipment (1) Any person or organization from whom you lease equipment; but only with respect to their liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your maintenance, operation or use of equipment leased to you by such person or organization. (g) Page 12 of 24 343 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Form SS 00 08 04 05 BUSINESS LIABILITY COVERAGE FORM (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to any "occurrence" which takes place after you cease to lease that equipment. c. Lessors Of Land Or Premises (1) Any person or organization from whom you lease land or premises, but only with respect to liability arising out of the ownership, maintenance or use of that part of the land or premises leased to you. (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to: (a) Any "occurrence" which takes place after you cease to lease that land or be a tenant in that premises; or (b) Structural alterations, new construction or demolition operations performed by or on behalf of such person or organization. d. Architects, Engineers Or Surveyors (1) Any architect, engineer, or surveyor, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: (a) In connection with your premises; or (b) In the performance of your ongoing operations performed by you or on your behalf. (2) With respect to the insurance afforded to these additional insureds, the following additional exclusion applies: This insurance does not apply to "bodily injury", "property damage" or "personal and advertising injury" arising out of the rendering of or the failure to render any professional services by or for you, including: (a) The preparing, approving, or failure to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders, designs or drawings and specifications; or (b) Supervisory, inspection, architectural or engineering activities. e. Permits Issued By State Or Political Subdivisions (1) Any state or political subdivision, but only with respect to operations performed by you or on your behalf for which the state or political subdivision has issued a permit. (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to: (a) "Bodily injury", "property damage" or "personal and advertising injury" arising out of operations performed for the state or municipality; or (b) "Bodily injury" or "property damage" included within the "products - completed operations hazard". f. Any Other Party (1) Any other person or organization who is not an insured under Paragraphs a. through e. above, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: (a) In the performance of your ongoing operations; (b) In connection with your premises owned by or rented to you; or (c) In connection with "your work" and included within the "products - completed operations hazard", but only if (i) The written contract or written agreement requires you to provide such coverage to such additional insured; and (ii) This Coverage Part provides coverage for "bodily injury" or "property damage" included within the "products - completed operations hazard". (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to: "Bodily injury', "property damage" or "personal and advertising injury" arising out of the rendering of, or the failure to render, any professional architectural, engineering or surveying services, including: 38993577 Form SS 00 08 04 05 344 of 585 17-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13.39 PM 13 Page 13 of 24 BUSINESS LIABILITY COVERAGE FORM (a) The preparing, approving, or failure to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders, designs or drawings and specifications; or (b) Supervisory, inspection, architectural or engineering activities. The limits of insurance that apply to additional insureds are described in Section D. — Limits Of Insurance. How this insurance applies when other insurance is available to an additional insured is described in the Other Insurance Condition in Section E. — Liability And Medical Expenses General Conditions. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations. D. LIABILITY AND MEDICAL EXPENSES LIMITS OF INSURANCE 1. The Most We Will Pay The Limits of Insurance shown in the Declarations and the rules below fix the most we will pay regardless of the number of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits". 2. Aggregate Limits The most we will pay for: a. Damages because of "bodily injury" and "property damage" included in the "products -completed operations hazard" is the Products -Completed Operations Aggregate Limit shown in the Declarations. b. Damages because of all other "bodily injury", "property damage" or "personal and advertising injury", including medical expenses, is the General Aggregate Limit shown in the Declarations. This General Aggregate Limit applies separately to each of your "locations" owned by or rented to you. "Location" means premises involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway or right-of-way of a railroad. This General Aggregate limit does not apply to "property damage" to premises while rented to you or temporarily occupied by you with permission of the owner, arising out of fire, lightning or explosion. 3. Each Occurrence Limit Subject to 2.a. or 2.b above, whichever applies, the most we will pay for the sum of all damages because of all "bodily injury", "property damage" and medical expenses arising out of any one "occurrence" is the Liability and Medical Expenses Limit shown in the Declarations. The most we will pay for all medical expenses because of "bodily injury" sustained by any one person is the Medical Expenses Limit shown in the Declarations. 4. Personal And Advertising Injury Limit Subject to 2.b. above, the most we will pay for the sum of all damages because of all "personal and advertising injury" sustained by any one person or organization is the Personal and Advertising Injury Limit shown in the Declarations. 5. Damage To Premises Rented To You Limit The Damage To Premises Rented To You Limit is the most we will pay under Business Liability Coverage for damages because of "property damage" to any one premises, while rented to you, or in the case of damage by fire, lightning or explosion, while rented to you or temporarily occupied by you with permission of the owner. In the case of damage by fire, lightning or explosion, the Damage to Premises Rented To You Limit applies to all damage proximately caused by the same event, whether such damage results from fire, lightning or explosion or any combination of these. 6. How Limits Apply To Additional Insureds The most we will pay on behalf of a person or organization who is an additional insured under this Coverage Part is the lesser of: a. The limits of insurance specified in a written contract, written agreement or permit issued by a state or political subdivision; or b. The Limits of Insurance shown in the Declarations. Such amount shall be a part of and not in addition to the Limits of Insurance shown in the Declarations and described in this Section. Page 14 of 24 345 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Form SS 00 08 04 05 BUSINESS LIABILITY COVERAGE FORM If more than one limit of insurance under this policy and any endorsements attached thereto applies to any claim or "suit", the most we will pay under this policy and the endorsements is the single highest limit of liability of all coverages applicable to such claim or "suit". However, this paragraph does not apply to the Medical Expenses limit set forth in Paragraph 3. above. The Limits of Insurance of this Coverage Part apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. E. LIABILITY AND MEDICAL EXPENSES GENERAL CONDITIONS 1. Bankruptcy Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obligations under this Coverage Part. 2. Duties In The Event Of Occurrence, Offense, Claim Or Suit a. Notice Of Occurrence Or Offense You or any additional insured must see to it that we are notified as soon as practicable of an "occurrence" or an offense which may result in a claim. To the extent possible, notice should include: (1) How, when and where the "occurrence" or offense took place; (2) The names and addresses of any injured persons and witnesses; and The nature and location of any injury or damage arising out of the "occurrence" or offense. b. Notice Of Claim If a claim is made or "suit" is brought against any insured, you or any additional insured must: (1) Immediately record the specifics of the claim or "suit" and the date received; and (2) Notify us as soon as practicable. You or any additional insured must see to it that we receive a written notice of the claim or "suit" as soon as practicable. c. Assistance And Cooperation Of The Insured (3) You and any other involved insured must: (1) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or "suit"; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investigation, settlement of the claim or defense against the "suit"; and (4) Assist us, upon our request, in the enforcement of any right against any person or organization that may be liable to the insured because of injury or damage to which this insurance may also apply. d. Obligations At The Insured's Own Cost No insured will, except at that insured's own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent. e. Additional Insured's Other Insurance If we cover a claim or "suit" under this Coverage Part that may also be covered by other insurance available to an additional insured, such additional insured must submit such claim or "suit" to the other insurer for defense and indemnity. However, this provision does not apply to the extent that you have agreed in a written contract, written agreement or permit that this insurance is primary and non-contributory with the additional insured's own insurance. f. Knowledge Of An Occurrence, Offense, Claim Or Suit Paragraphs a. and b. apply to you or to any additional insured only when such "occurrence", offense, claim or "suit" is known to: (1) You or any additional insured that is an individual; (2) Any partner, if you or an additional insured is a partnership; Any manager, if you or an additional insured is a limited liability company; (4) Any "executive officer" or insurance manager, if you or an additional insured is a corporation; (5) Any trustee, if you or an additional insured is a trust; or (6) Any elected or appointed official, if you or an additional insured is a political subdivision or public entity. (3) Form SS 00 08 04 05 346 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13.39 PM 13 Page 15 of 24 BUSINESS LIABILITY COVERAGE FORM This Paragraph f. applies separately to you and any additional insured. 3. Financial Responsibility Laws a. When this policy is certified as proof of financial responsibility for the future under the provisions of any motor vehicle financial responsibility law, the insurance provided by the policy for "bodily injury" liability and "property damage" liability will comply with the provisions of the law to the extent of the coverage and limits of insurance required by that law. b. With respect to "mobile equipment" to which this insurance applies, we will provide any liability, uninsured motorists, underinsured motorists, no-fault or other coverage required by any motor vehicle law. We will provide the required limits for those coverages. 4. Legal Action Against Us No person or organization has a right under this Coverage Form: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an insured; or b. To sue us on this Coverage Form unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured; but we will not be liable for damages that are not payable under the terms of this insurance or that are in excess of the applicable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representative. 5. Separation Of Insureds Except with respect to the Limits of Insurance, and any rights or duties specifically assigned in this policy to the first Named Insured, this insurance applies: a. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom a claim is made or "suit" is brought. 6. Representations a. When You Accept This Policy By accepting this policy, you agree: (1) The statements in the Declarations are accurate and complete; (2) Those statements are based upon representations you made to us; and (3) We have issued this policy in reliance upon your representations. b. Unintentional Failure To Disclose Hazards If unintentionally you should fail to disclose all hazards relating to the conduct of your business at the inception date of this Coverage Part, we shall not deny any coverage under this Coverage Part because of such failure. 7. Other Insurance If other valid and collectible insurance is available for a loss we cover under this Coverage Part, our obligations are limited as fol lows: a. Primary Insurance This insurance is primary except when b. below applies. If other insurance is also primary, we will share with all that other insurance by the method described in c. below. b. Excess Insurance This insurance is excess over any of the other insurance, whether primary, excess, contingent or on any other basis: (1) Your Work That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work"; (2) Premises Rented To You That is fire, lightning or explosion insurance for premises rented to you or temporarily occupied by you with permission of the owner; Tenant Liability That is insurance purchased by you to cover your liability as a tenant for "property damage" to premises rented to you or temporarily occupied by you with permission of the owner; (4) Aircraft, Auto Or Watercraft If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of Section A. — Coverages. Property Damage To Borrowed Equipment Or Use Of Elevators If the loss arises out of "property damage" to borrowed equipment or the use of elevators to the extent not subject to Exclusion k. of Section A. — Coverages. (3) (5) Page 16 of 24 347 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Form SS 00 08 04 05 BUSINESS LIABILITY COVERAGE FORM (6) When You Are Added As An Additional Insured To Other Insurance That is other insurance available to you covering liability for damages arising out of the premises or operations, or products and completed operations, for which you have been added as an additional insured by that insurance; or When You Add Others As An Additional Insured To This Insurance That is other insurance available to an additional insured. However, the following provisions apply to other insurance available to any person or organization who is an additional insured under this Coverage Part: (a) Primary Insurance When Required By Contract This insurance is primary if you have agreed in a written contract, written agreement or permit that this insurance be primary. If other insurance is also primary, we will share with all that other insurance by the method described in c. below. (b) Primary And Non -Contributory To Other Insurance When Required By Contract If you have agreed in a written contract, written agreement or permit that this insurance is primary and non-contributory with the additional insured's own insurance, this insurance is primary and we will not seek contribution from that other insurance. Paragraphs (a) and (b) do not apply to other insurance to which the additional insured has been added as an additional insured. When this insurance is excess, we will have no duty under this Coverage Part to defend the insured against any "suit" if any other insurer has a duty to defend the insured against that "suit". If no other insurer defends, we will undertake to do so, but we will be entitled to the insured's rights against all those other insurers. (7) When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of: (1) The total amount that all such other insurance would pay for the loss in the absence of this insurance; and (2) The total of all deductible and self - insured amounts under all that other insurance. We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of this Coverage Part. c. Method Of Sharing If all the other insurance permits contribution by equal shares, we will follow this method also. Under this approach, each insurer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers. 8. Transfer Of Rights Of Recovery Against Others To Us a. Transfer Of Rights Of Recovery If the insured has rights to recover all or part of any payment, including Supplementary Payments, we have made under this Coverage Part, those rights are transferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them. This condition does not apply to Medical Expenses Coverage. b. Waiver Of Rights Of Recovery (Waiver Of Subrogation) If the insured has waived any rights of recovery against any person or organization for all or part of any payment, including Supplementary Payments, we have made under this Coverage Part, we also waive that right, provided the insured waived their rights of recovery against such person or organization in a contract, agreement or permit that was executed prior to the injury or damage. Form SS 00 08 04 05 348 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Page 17 of 24 BUSINESS LIABILITY COVERAGE FORM F. OPTIONAL ADDITIONAL INSURED COVERAGES If listed or shown as applicable in the Declarations, one or more of the following Optional Additional Insured Coverages also apply. When any of these Optional Additional Insured Coverages apply, Paragraph 6. (Additional Insureds When Required by Written Contract, Written Agreement or Permit) of Section C., Who Is An Insured, does not apply to the person or organization shown in the Declarations. These coverages are subject to the terms and conditions applicable to Business Liability Coverage in this policy, except as provided below: 1. Additional Insured - Designated Person Or Organization WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: a. In the performance of your ongoing operations; or b. In connection with your premises owned by or rented to you. 2. Additional Insured - Managers Or Lessors Of Premises a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured - Designated Person Or Organization; but only with respect to liability arising out of the ownership, maintenance or use of that part of the premises leased to you and shown in the Declarations. b. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: This insurance does not apply to: (1) Any "occurrence" which takes place after you cease to be a tenant in that premises; or (2) Structural alterations, new construction or demolition operations performed by or on behalf of such person or organization. 3. Additional Insured - Grantor Of Franchise WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured - Grantor Of Franchise, but only with respect to their liability as grantor of franchise to you. 4. Additional Insured - Lessor Of Leased Equipment a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured — Lessor of Leased Equipment, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your maintenance, operation or use of equipment leased to you by such person(s) or organization(s). b. With respect to the insurance afforded to these additional insureds, this insurance does not apply to any "occurrence" which takes place after you cease to lease that equipment. 5. Additional Insured - Owners Or Other Interests From Whom Land Has Been Leased a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured — Owners Or Other Interests From Whom Land Has Been Leased, but only with respect to liability arising out of the ownership, maintenance or use of that part of the land leased to you and shown in the Declarations. b. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: This insurance does not apply to: (1) Any "occurrence" that takes place after you cease to lease that land; or (2) Structural alterations, new construction or demolition operations performed by or on behalf of such person or organization. 6. Additional Insured - State Or Political Subdivision — Permits a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the state or political subdivision shown in the Declarations as an Additional Page 18 of 24 349 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Form SS 00 08 04 05 BUSINESS LIABILITY COVERAGE FORM Insured — State Or Political Subdivision - Permits, but only with respect to operations performed by you or on your behalf for which the state or political subdivision has issued a permit. b. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: This insurance does not apply to: (1) "Bodily injury", "property damage" or "personal and advertising injury" arising out of operations performed for the state or municipality; or (2) "Bodily injury" or "property damage" included in the "product -completed operations" hazard. 7. Additional Insured — Vendors a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) (referred to below as vendor) shown in the Declarations as an Additional Insured - Vendor, but only with respect to "bodily injury" or "property damage" arising out of "your products" which are distributed or sold in the regular course of the vendor's business and only if this Coverage Part provides coverage for "bodily injury" or "property damage" included within the "products -completed operations hazard". b. The insurance afforded to the vendor is subject to the following additional exclusions: (1) This insurance does not apply to: (a) "Bodily injury" or "property damage" for which the vendor is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the vendor would have in the absence of the contract or agreement; (b) Any express warranty unauthorized by you; (c) Any physical or chemical change in the product made intentionally by the vendor; (d) Repackaging, unless unpacked solely for the purpose of inspection, demonstration, testing, or the substitution of parts under instructions from the manufacturer, and then repackaged in the original container; (e) Any failure to make such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products; (f) Demonstration, installation, servicing or repair operations, except such operations performed at the vendor's premises in connection with the sale of the product; Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or ingredient of any other thing or substance by or for the vendor; or (h) "Bodily injury" or "property damage" arising out of the sole negligence of the vendor for its own acts or omissions or those of its employees or anyone else acting on its behalf. However, this exclusion does not apply to: (i) The exceptions contained in Subparagraphs (d) or (f); or (ii) Such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products. (2) This insurance does not apply to any insured person or organization from whom you have acquired such products, or any ingredient, part or container, entering into, accompanying or containing such products. 8. Additional Insured — Controlling Interest WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured — Controlling Interest, but only with respect to their liability arising out of: a. Their financial control of you; or b. Premises they own, maintain or control while you lease or occupy these premises. (g) Form SS 00 08 04 05 350 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Page 19 of 24 BUSINESS LIABILITY COVERAGE FORM This insurance does not apply to structural alterations, new construction and demolition operations performed by or for that person or organization. 9. Additional Insured — Owners, Lessees Or Contractors — Scheduled Person Or Organization a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured — Owner, Lessees Or Contractors, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: (1) In the performance of your ongoing operations for the additional insured(s); or (2) In connection with "your work" performed for that additional insured and included within the "products - completed operations hazard", but only if this Coverage Part provides coverage for "bodily injury" or "property damage" included within the "products -completed operations hazard". b. With respect to the insurance afforded to these additional insureds, this insurance does not apply to "bodily injury", "property damage" or "personal an advertising injury" arising out of the rendering of, or the failure to render, any professional architectural, engineering or surveying services, including: (1) The preparing, approving, or failure to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders, designs or drawings and specifications; or (2) Supervisory, inspection, architectural or engineering activities. 10. Additional Insured — Co -Owner Of Insured Premises WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or Organization(s) shown in the Declarations as an Additional Insured — Co - Owner Of Insured Premises, but only with respect to their liability as co-owner of the premises shown in the Declarations. The limits of insurance that apply to additional insureds are described in Section D. — Limits Of Insurance. How this insurance applies when other insurance is available to an additional insured is described in the Other Insurance Condition in Section E. — Liability And Medical Expenses General Conditions. G. LIABILITY AND MEDICAL EXPENSES DEFINITIONS 1. "Advertisement" means the widespread public dissemination of information or images that has the purpose of inducing the sale of goods, products or services through: Radio; Television; Billboard; Magazine; Newspaper; b. The Internet, but only that part of a web site that is about goods, products or services for the purposes of inducing the sale of goods, products or services; or c. Any other publication that is given widespread public distribution. However, "advertisement" does not include: a. The design, printed material, information or images contained in, on or upon the packaging or labeling of any goods or products; or b. An interactive conversation between or among persons through a computer network. 2. "Advertising idea" means any idea for an "advertisement". 3. "Asbestos hazard" means an exposure or threat of exposure to the actual or alleged properties of asbestos and includes the mere presence of asbestos in any form. 4. "Auto" means a land motor vehicle, trailer or semi -trailer designed for travel on public roads, including any attached machinery or equipment. But "auto" does not include "mobile equipment". 5. "Bodily injury" means physical: a. Injury; b. Sickness; or c. Disease sustained by a person and, if arising out of the above, mental anguish or death at any time. 6. "Coverage territory" means: Page 20 of 24 351 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM f 13 Form SS 00 08 04 05 TRAVELERS Insured: Phase II Systems Policy No.: UB2J193983 Effective Date: 6/1/2017 WORKERS COMPENSATION AND EMPLOYERS LIABILITY ENDORSEMENT WC 99 03 76 (00) dba: PARS WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT — CALIFORNIA (BLANKET WAIVER) We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. The additional premium for this endorsement shall be 5.000% of the California workers' compensation premium otherwise due on such remuneration. Schedule Person or Organization ANY PERSON OR ORGANIZATION WITH WHOM YOU AGREE IN WRITING TO WAIVE YOUR RIGHT TO RECOVER AGAINST THEM. YOU MUST AGREE TO THIS WAIVER PRIOR TO THE DATE OF LOSS Job Description: Projects as on file with the insured. Authorized Representative 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 P 352 of 585 ACORO° CERTIFICATE OF LIABILITY INSURANCE 4....---- DATE(MM/DDYYYY) 11 /28/2017 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Risk Strategies Company 2040 Main Street, Suite 450 Irvine, CA 92614 www.risk-strategies.com CA DOI License No. 0F06675 CONTACT NAME: Risk Strategies Company PHONE FAX (A/C, No, Ext): 949-242-9240 (A/C. No): E-MAIL ADDRESS: syoung % risk-strategies.com INSURER(S) AFFORDING COVERAGE NAIC # INSURER A: Sentinel Insurance Co. 11000 INSURED Phase II Systems dba: PARS 4350 Von Karman Ave., Ste 100 Newport Beach CA 92660 INSURER B: Travelers Property Casualty Co of America 25674 INSURERC: Lloyds INSURERD: INSURER E : INSURER F : COVERAGES CERTIFICATE NUMBER: 38993577 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTRIPOLICY TYPE OF INSURANCE INSD WVD POLICY NUMBER EFF (MIWDD/Y1rYY) POLICY EXP (MMR1D/Y1rYY) LIMITS A / COMMERCIAL GENERAL LIABILITY / / 72SBAAC2429 5/8/2017 5/8/2018 EACH OCCURRENCE $ $2,000,000 CLAIMS -MADE ✓ OCCUR DAMAGE TO RENTED PREMISES (Ea occurrence) $ $1,000,000 MED EXP (Any one person) $ $10,000 PERSONAL & ADV INJURY $ $2,000,000 GEN'L AGGREGATE ✓ LIMIT APPLIES JET PER: LOC GENERAL AGGREGATE $ $4,000,000 PRODUCTS - COMP/OP AGG $ $4,000,000 $ A AUTOMOBILE ✓ LIABILITY ANY AUTO OWNED AUTOS ONLY AUTOS ONLY / SCHEDULED AUTOS AUTOS ONLY 72SBAAC2429 5/8/2017 5/8/2018 COMBIiJE SINGLE LIMIT $$2,000,000 BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per a cident) $ $ UMBRELLA LIAB EXCESS LIAB OCCUR CLAIMS -MADE EACH OCCURRENCE $ AGGREGATE $ DED RETENTION $ $ B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANYPROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBEREXCLUDED? (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below Y/ N N / A / UB2J193983 6/1/2017 6/1/2018 ,/ STATUTE ERH E.L. EACH ACCIDENT $ $1,000,000 E.L. DISEASE - EA EMPLOYEE $ $1,000,000 E.L. DISEASE - POLICY LIMIT $ $1,000,000 C Professional Liability LDUSA1704508 7/30/2017 7/30/2018 Per Claim: $2,000,000 Aggregate: $2,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Projects as on file with the insured including but not limited to: Trust administration services related to the Public Agencies Post -Employment Benefits Trust. The City of National City, its officers, employees, volunteers and agents are named as additional insureds and primary/non-contributory clause applies to the general liability policy and a waiver of subrogation applies to the general liability and work comp policies -see attached endorsements. CERTIFICATE HOLDER CANCELLATION City of National City c/o Risk Manager 1243 National City Blvd. National City CA 91950-4397 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF. NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE Michael Christian © 1988-2015 ACORD CORPORATION. All rights reserved. ared marks of ACORD ACORD 25 (2016/03) The ACORD name anc 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 EY 353 of 585 72SBAAC2429 BUSINESS LIABILITY COVERAGE FORM 2. Applicable To Medical Expenses Coverage We will not pay expenses for "bodily injury": a. Any Insured To any insured, except "volunteer workers". b. Hired Person To a person hired to do work for or on behalf of any insured or a tenant of any insured. c. Injury On Normally Occupied Premises To a person injured on that part of premises you own or rent that the person normally occupies. d. Workers' Compensation And Similar Laws To a person, whether or not an "employee" of any insured, if benefits for the "bodily injury" are payable or must be provided under a workers' compensation or disability benefits law or a similar law. e. Athletics Activities To a person injured while practicing, instructing or participating in any physical exercises or games, sports or athletic contests. f. Products -Completed Operations Hazard Included with the "products -completed operations hazard". Business Liability Exclusions Excluded under Business Liability Coverage. C. WHO IS AN INSURED 1. If you are designated in the Declarations as: a. An individual, you and your spouse are insureds, but only with respect to the conduct of a business of which you are the sole owner. b. A partnership or joint venture, you are an insured. Your members, your partners, and their spouses are also insureds, but only with respect to the conduct of your business. c. A limited liability company, you are an insured. Your members are also insureds, but only with respect to the conduct of your business. Your managers are insureds, but only with respect to their duties as your managers. d. An organization other than a partnership, joint venture or limited liability company, you are an insured. Your "executive officers" and directors are insureds, but only with respect to their duties as your officers or directors. Your stockholders are also insureds, but only with respect to their liability as stockholders. g• e. A trust, you are an insured. Your trustees are also insureds, but only with respect to their duties as trustees. 2. Each of the following is also an insured: a. Employees And Volunteer Workers Your "volunteer workers" only while performing duties related to the conduct of your business, or your "employees", other than either your "executive officers" (if you are an organization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited liability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "employees" or "volunteer workers" are insureds for: (1) "Bodily injury" or "personal and advertising injury": (a) To you, to your partners or members (if you are a partnership or joint venture), to your members (if you are a limited liability company), or to a co -"employee" while in the course of his or her employment or performing duties related to the conduct of your business, or to your other "volunteer workers" while performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co - "employee" or that "volunteer worker" as a consequence of Paragraph (1)(a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in Paragraphs (1)(a) or (b) above; or (d) Arising out of his or her providing or failing to provide professional health care services. If you are not in the business of providing professional health care services, Paragraph (d) does not apply to any nurse, emergency medical technician or paramedic employed by you to provide such services. (2) "Property damage" to property: (a) Owned, occupied or used by, Page 10 of 24 354 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13.39 PM 13 Form SS 00 08 04 05 BUSINESS LIABILITY COVERAGE FORM (b) Rented to, in the care, custody or control of, or over which physical control is being exercised for any purpose by you, any of your "employees", "volunteer workers", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). b. Real Estate Manager Any person (other than your "employee" or "volunteer worker"), or any organization while acting as your real estate manager. c. Temporary Custodians Of Your Property Any person or organization having proper temporary custody of your property if you die, but only: (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. d. Legal Representative If You Die Your legal representative if you die, but only with respect to duties as such. That representative will have all your rights and duties under this insurance. e. Unnamed Subsidiary Any subsidiary and subsidiary thereof, of yours which is a legally incorporated entity of which you own a financial interest of more than 50% of the voting stock on the effective date of this Coverage Part. The insurance afforded herein for any subsidiary not shown in the Declarations as a named insured does not apply to injury or damage with respect to which an insured under this insurance is also an insured under another policy or would be an insured under such policy but for its termination or upon the exhaustion of its limits of insurance. 3. Newly Acquired Or Formed Organization Any organization you newly acquire or form, other than a partnership, joint venture or limited liability company, and over which you maintain financial interest of more than 50% of the voting stock, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 180th day after you acquire or form the organization or the end of the policy period, whichever is earlier; and b. Coverage under this provision does not apply to: (1) "Bodily injury" or "property damage" that occurred; or (2) "Personal and advertising injury" arising out of an offense committed before you acquired or formed the organization. 4. Operator Of Mobile Equipment With respect to "mobile equipment" registered in your name under any motor vehicle registration law, any person is an insured while driving such equipment along a public highway with your permission. Any other person or organization responsible for the conduct of such person is also an insured, but only with respect to liability arising out of the operation of the equipment, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with respect to: a. "Bodily injury" to a co -"employee" of the person driving the equipment; or b. "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision. 5. Operator of Nonowned Watercraft With respect to watercraft you do not own that is less than 51 feet long and is not being used to carry persons for a charge, any person is an insured while operating such watercraft with your permission. Any other person or organization responsible for the conduct of such person is also an insured, but only with respect to liability arising out of the operation of the watercraft, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with respect to: a. "Bodily injury" to a co -"employee" of the person operating the watercraft; or b. "Property damage" to property owned by, rented to, in the charge of or occupied by you or the employer of any person who is an insured under this provision. 6. Additional Insureds When Required By Written Contract, Written Agreement Or Permit The person(s) or organization(s) identified in Paragraphs a. through f. below are additional insureds when you have agreed, in a written Form SS 00 08 04 05 355 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Page 11 of 24 BUSINESS LIABILITY COVERAGE FORM contract, written agreement or because of a permit issued by a state or political subdivision, that such person or organization be added as an additional insured on your policy, provided the injury or damage occurs subsequent to the execution of the contract or agreement, or the issuance of the permit. A person or organization is an additional insured under this provision only for that period of time required by the contract, agreement or permit. However, no such person or organization is an additional insured under this provision if such person or organization is included as an additional insured by an endorsement issued by us and made a part of this Coverage Part, including all persons or organizations added as additional insureds under the specific additional insured coverage grants in Section F. — Optional Additional Insured Coverages. a. Vendors Any person(s) or organization(s) (referred to below as vendor), but only with respect to "bodily injury" or "property damage" arising out of "your products" which are distributed or sold in the regular course of the vendor's business and only if this Coverage Part provides coverage for "bodily injury" or "property damage" included within the "products -completed operations hazard". (1) The insurance afforded to the vendor is subject to the following additional exclusions: This insurance does not apply to: (a) "Bodily injury" or "property damage" for which the vendor is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the vendor would have in the absence of the contract or agreement; (b) Any express warranty unauthorized by you; (c) Any physical or chemical change in the product made intentionally by the vendor; (d) Repackaging, except when unpacked solely for the purpose of inspection, demonstration, testing, or the substitution of parts under instructions from the manufacturer, and then repackaged in the original container; (e) Any failure to make such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products; (f) Demonstration, installation, servicing or repair operations, except such operations performed at the vendor's premises in connection with the sale of the product; Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or ingredient of any other thing or substance by or for the vendor; or (h) "Bodily injury" or "property damage" arising out of the sole negligence of the vendor for its own acts or omissions or those of its employees or anyone else acting on its behalf. However, this exclusion does not apply to: (i) The exceptions contained in Subparagraphs (d) or (f); or (ii) Such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products. (2) This insurance does not apply to any insured person or organization from whom you have acquired such products, or any ingredient, part or container, entering into, accompanying or containing such products. b. Lessors Of Equipment (1) Any person or organization from whom you lease equipment; but only with respect to their liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your maintenance, operation or use of equipment leased to you by such person or organization. (g) Page 12 of 24 356 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13.39 PM 13 Form SS 00 08 04 05 BUSINESS LIABILITY COVERAGE FORM (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to any "occurrence" which takes place after you cease to lease that equipment. c. Lessors Of Land Or Premises (1) Any person or organization from whom you lease land or premises, but only with respect to liability arising out of the ownership, maintenance or use of that part of the land or premises leased to you. (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to: (a) Any "occurrence" which takes place after you cease to lease that land or be a tenant in that premises; or (b) Structural alterations, new construction or demolition operations performed by or on behalf of such person or organization. d. Architects, Engineers Or Surveyors (1) Any architect, engineer, or surveyor, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: (a) In connection with your premises; or (b) In the performance of your ongoing operations performed by you or on your behalf. (2) With respect to the insurance afforded to these additional insureds, the following additional exclusion applies: This insurance does not apply to "bodily injury", "property damage" or "personal and advertising injury" arising out of the rendering of or the failure to render any professional services by or for you, including: (a) The preparing, approving, or failure to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders, designs or drawings and specifications; or (b) Supervisory, inspection, architectural or engineering activities. e. Permits Issued By State Or Political Subdivisions (1) Any state or political subdivision, but only with respect to operations performed by you or on your behalf for which the state or political subdivision has issued a permit. (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to: (a) "Bodily injury", "property damage" or "personal and advertising injury" arising out of operations performed for the state or municipality; or (b) "Bodily injury" or "property damage" included within the "products - completed operations hazard". f. Any Other Party (1) Any other person or organization who is not an insured under Paragraphs a. through e. above, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: (a) In the performance of your ongoing operations; (b) In connection with your premises owned by or rented to you; or (c) In connection with "your work" and included within the "products - completed operations hazard", but only if (i) The written contract or written agreement requires you to provide such coverage to such additional insured; and (ii) This Coverage Part provides coverage for "bodily injury" or "property damage" included within the "products - completed operations hazard". (2) With respect to the insurance afforded to these additional insureds, this insurance does not apply to: "Bodily injury', "property damage" or "personal and advertising injury" arising out of the rendering of, or the failure to render, any professional architectural, engineering or surveying services, including: 38993577 Form SS 00 08 04 05 357 of 585 17-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Page 13 of 24 BUSINESS LIABILITY COVERAGE FORM (a) The preparing, approving, or failure to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders, designs or drawings and specifications; or (b) Supervisory, inspection, architectural or engineering activities. The limits of insurance that apply to additional insureds are described in Section D. — Limits Of Insurance. How this insurance applies when other insurance is available to an additional insured is described in the Other Insurance Condition in Section E. — Liability And Medical Expenses General Conditions. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability company that is not shown as a Named Insured in the Declarations. D. LIABILITY AND MEDICAL EXPENSES LIMITS OF INSURANCE 1. The Most We Will Pay The Limits of Insurance shown in the Declarations and the rules below fix the most we will pay regardless of the number of: a. Insureds; b. Claims made or "suits" brought; or c. Persons or organizations making claims or bringing "suits". 2. Aggregate Limits The most we will pay for: a. Damages because of "bodily injury" and "property damage" included in the "products -completed operations hazard" is the Products -Completed Operations Aggregate Limit shown in the Declarations. b. Damages because of all other "bodily injury", "property damage" or "personal and advertising injury", including medical expenses, is the General Aggregate Limit shown in the Declarations. This General Aggregate Limit applies separately to each of your "locations" owned by or rented to you. "Location" means premises involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway or right-of-way of a railroad. This General Aggregate limit does not apply to "property damage" to premises while rented to you or temporarily occupied by you with permission of the owner, arising out of fire, lightning or explosion. 3. Each Occurrence Limit Subject to 2.a. or 2.b above, whichever applies, the most we will pay for the sum of all damages because of all "bodily injury", "property damage" and medical expenses arising out of any one "occurrence" is the Liability and Medical Expenses Limit shown in the Declarations. The most we will pay for all medical expenses because of "bodily injury" sustained by any one person is the Medical Expenses Limit shown in the Declarations. 4. Personal And Advertising Injury Limit Subject to 2.b. above, the most we will pay for the sum of all damages because of all "personal and advertising injury" sustained by any one person or organization is the Personal and Advertising Injury Limit shown in the Declarations. 5. Damage To Premises Rented To You Limit The Damage To Premises Rented To You Limit is the most we will pay under Business Liability Coverage for damages because of "property damage" to any one premises, while rented to you, or in the case of damage by fire, lightning or explosion, while rented to you or temporarily occupied by you with permission of the owner. In the case of damage by fire, lightning or explosion, the Damage to Premises Rented To You Limit applies to all damage proximately caused by the same event, whether such damage results from fire, lightning or explosion or any combination of these. 6. How Limits Apply To Additional Insureds The most we will pay on behalf of a person or organization who is an additional insured under this Coverage Part is the lesser of: a. The limits of insurance specified in a written contract, written agreement or permit issued by a state or political subdivision; or b. The Limits of Insurance shown in the Declarations. Such amount shall be a part of and not in addition to the Limits of Insurance shown in the Declarations and described in this Section. Page 14 of 24 358 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Form SS 00 08 04 05 BUSINESS LIABILITY COVERAGE FORM If more than one limit of insurance under this policy and any endorsements attached thereto applies to any claim or "suit", the most we will pay under this policy and the endorsements is the single highest limit of liability of all coverages applicable to such claim or "suit". However, this paragraph does not apply to the Medical Expenses limit set forth in Paragraph 3. above. The Limits of Insurance of this Coverage Part apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an additional period of less than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. E. LIABILITY AND MEDICAL EXPENSES GENERAL CONDITIONS 1. Bankruptcy Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obligations under this Coverage Part. 2. Duties In The Event Of Occurrence, Offense, Claim Or Suit a. Notice Of Occurrence Or Offense You or any additional insured must see to it that we are notified as soon as practicable of an "occurrence" or an offense which may result in a claim. To the extent possible, notice should include: (1) How, when and where the "occurrence" or offense took place; (2) The names and addresses of any injured persons and witnesses; and The nature and location of any injury or damage arising out of the "occurrence" or offense. b. Notice Of Claim If a claim is made or "suit" is brought against any insured, you or any additional insured must: (1) Immediately record the specifics of the claim or "suit" and the date received; and (2) Notify us as soon as practicable. You or any additional insured must see to it that we receive a written notice of the claim or "suit" as soon as practicable. c. Assistance And Cooperation Of The Insured (3) You and any other involved insured must: (1) Immediately send us copies of any demands, notices, summonses or legal papers received in connection with the claim or "suit"; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investigation, settlement of the claim or defense against the "suit"; and (4) Assist us, upon our request, in the enforcement of any right against any person or organization that may be liable to the insured because of injury or damage to which this insurance may also apply. d. Obligations At The Insured's Own Cost No insured will, except at that insured's own cost, voluntarily make a payment, assume any obligation, or incur any expense, other than for first aid, without our consent. e. Additional Insured's Other Insurance If we cover a claim or "suit" under this Coverage Part that may also be covered by other insurance available to an additional insured, such additional insured must submit such claim or "suit" to the other insurer for defense and indemnity. However, this provision does not apply to the extent that you have agreed in a written contract, written agreement or permit that this insurance is primary and non-contributory with the additional insured's own insurance. f. Knowledge Of An Occurrence, Offense, Claim Or Suit Paragraphs a. and b. apply to you or to any additional insured only when such "occurrence", offense, claim or "suit" is known to: (1) You or any additional insured that is an individual; (2) Any partner, if you or an additional insured is a partnership; Any manager, if you or an additional insured is a limited liability company; (4) Any "executive officer" or insurance manager, if you or an additional insured is a corporation; (5) Any trustee, if you or an additional insured is a trust; or (6) Any elected or appointed official, if you or an additional insured is a political subdivision or public entity. (3) Form SS 00 08 04 05 359 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Page 15 of 24 BUSINESS LIABILITY COVERAGE FORM This Paragraph f. applies separately to you and any additional insured. 3. Financial Responsibility Laws a. When this policy is certified as proof of financial responsibility for the future under the provisions of any motor vehicle financial responsibility law, the insurance provided by the policy for "bodily injury" liability and "property damage" liability will comply with the provisions of the law to the extent of the coverage and limits of insurance required by that law. b. With respect to "mobile equipment" to which this insurance applies, we will provide any liability, uninsured motorists, underinsured motorists, no-fault or other coverage required by any motor vehicle law. We will provide the required limits for those coverages. 4. Legal Action Against Us No person or organization has a right under this Coverage Form: a. To join us as a party or otherwise bring us into a "suit" asking for damages from an insured; or b. To sue us on this Coverage Form unless all of its terms have been fully complied with. A person or organization may sue us to recover on an agreed settlement or on a final judgment against an insured; but we will not be liable for damages that are not payable under the terms of this insurance or that are in excess of the applicable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representative. 5. Separation Of Insureds Except with respect to the Limits of Insurance, and any rights or duties specifically assigned in this policy to the first Named Insured, this insurance applies: a. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom a claim is made or "suit" is brought. 6. Representations a. When You Accept This Policy By accepting this policy, you agree: (1) The statements in the Declarations are accurate and complete; (2) Those statements are based upon representations you made to us; and (3) We have issued this policy in reliance upon your representations. b. Unintentional Failure To Disclose Hazards If unintentionally you should fail to disclose all hazards relating to the conduct of your business at the inception date of this Coverage Part, we shall not deny any coverage under this Coverage Part because of such failure. 7. Other Insurance If other valid and collectible insurance is available for a loss we cover under this Coverage Part, our obligations are limited as fol lows: a. Primary Insurance This insurance is primary except when b. below applies. If other insurance is also primary, we will share with all that other insurance by the method described in c. below. b. Excess Insurance This insurance is excess over any of the other insurance, whether primary, excess, contingent or on any other basis: (1) Your Work That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work"; (2) Premises Rented To You That is fire, lightning or explosion insurance for premises rented to you or temporarily occupied by you with permission of the owner; Tenant Liability That is insurance purchased by you to cover your liability as a tenant for "property damage" to premises rented to you or temporarily occupied by you with permission of the owner; (4) Aircraft, Auto Or Watercraft If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of Section A. — Coverages. Property Damage To Borrowed Equipment Or Use Of Elevators If the loss arises out of "property damage" to borrowed equipment or the use of elevators to the extent not subject to Exclusion k. of Section A. — Coverages. (3) (5) Page 16 of 24 360 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Form SS 00 08 04 05 BUSINESS LIABILITY COVERAGE FORM (6) When You Are Added As An Additional Insured To Other Insurance That is other insurance available to you covering liability for damages arising out of the premises or operations, or products and completed operations, for which you have been added as an additional insured by that insurance; or When You Add Others As An Additional Insured To This Insurance That is other insurance available to an additional insured. However, the following provisions apply to other insurance available to any person or organization who is an additional insured under this Coverage Part: (a) Primary Insurance When Required By Contract This insurance is primary if you have agreed in a written contract, written agreement or permit that this insurance be primary. If other insurance is also primary, we will share with all that other insurance by the method described in c. below. (b) Primary And Non -Contributory To Other Insurance When Required By Contract If you have agreed in a written contract, written agreement or permit that this insurance is primary and non-contributory with the additional insured's own insurance, this insurance is primary and we will not seek contribution from that other insurance. Paragraphs (a) and (b) do not apply to other insurance to which the additional insured has been added as an additional insured. When this insurance is excess, we will have no duty under this Coverage Part to defend the insured against any "suit" if any other insurer has a duty to defend the insured against that "suit". If no other insurer defends, we will undertake to do so, but we will be entitled to the insured's rights against all those other insurers. (7) When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of: (1) The total amount that all such other insurance would pay for the loss in the absence of this insurance; and (2) The total of all deductible and self - insured amounts under all that other insurance. We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of this Coverage Part. c. Method Of Sharing If all the other insurance permits contribution by equal shares, we will follow this method also. Under this approach, each insurer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers. 8. Transfer Of Rights Of Recovery Against Others To Us a. Transfer Of Rights Of Recovery If the insured has rights to recover all or part of any payment, including Supplementary Payments, we have made under this Coverage Part, those rights are transferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them. This condition does not apply to Medical Expenses Coverage. b. Waiver Of Rights Of Recovery (Waiver Of Subrogation) If the insured has waived any rights of recovery against any person or organization for all or part of any payment, including Supplementary Payments, we have made under this Coverage Part, we also waive that right, provided the insured waived their rights of recovery against such person or organization in a contract, agreement or permit that was executed prior to the injury or damage. Form SS 00 08 04 05 361 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Page 17 of 24 BUSINESS LIABILITY COVERAGE FORM F. OPTIONAL ADDITIONAL INSURED COVERAGES If listed or shown as applicable in the Declarations, one or more of the following Optional Additional Insured Coverages also apply. When any of these Optional Additional Insured Coverages apply, Paragraph 6. (Additional Insureds When Required by Written Contract, Written Agreement or Permit) of Section C., Who Is An Insured, does not apply to the person or organization shown in the Declarations. These coverages are subject to the terms and conditions applicable to Business Liability Coverage in this policy, except as provided below: 1. Additional Insured - Designated Person Or Organization WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: a. In the performance of your ongoing operations; or b. In connection with your premises owned by or rented to you. 2. Additional Insured - Managers Or Lessors Of Premises a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured - Designated Person Or Organization; but only with respect to liability arising out of the ownership, maintenance or use of that part of the premises leased to you and shown in the Declarations. b. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: This insurance does not apply to: (1) Any "occurrence" which takes place after you cease to be a tenant in that premises; or (2) Structural alterations, new construction or demolition operations performed by or on behalf of such person or organization. 3. Additional Insured - Grantor Of Franchise WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured - Grantor Of Franchise, but only with respect to their liability as grantor of franchise to you. 4. Additional Insured - Lessor Of Leased Equipment a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured — Lessor of Leased Equipment, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your maintenance, operation or use of equipment leased to you by such person(s) or organization(s). b. With respect to the insurance afforded to these additional insureds, this insurance does not apply to any "occurrence" which takes place after you cease to lease that equipment. 5. Additional Insured - Owners Or Other Interests From Whom Land Has Been Leased a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured — Owners Or Other Interests From Whom Land Has Been Leased, but only with respect to liability arising out of the ownership, maintenance or use of that part of the land leased to you and shown in the Declarations. b. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: This insurance does not apply to: (1) Any "occurrence" that takes place after you cease to lease that land; or (2) Structural alterations, new construction or demolition operations performed by or on behalf of such person or organization. 6. Additional Insured - State Or Political Subdivision — Permits a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the state or political subdivision shown in the Declarations as an Additional Page 18 of 24 362 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Form SS 00 08 04 05 BUSINESS LIABILITY COVERAGE FORM Insured — State Or Political Subdivision - Permits, but only with respect to operations performed by you or on your behalf for which the state or political subdivision has issued a permit. b. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: This insurance does not apply to: (1) "Bodily injury", "property damage" or "personal and advertising injury" arising out of operations performed for the state or municipality; or (2) "Bodily injury" or "property damage" included in the "product -completed operations" hazard. 7. Additional Insured — Vendors a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) (referred to below as vendor) shown in the Declarations as an Additional Insured - Vendor, but only with respect to "bodily injury" or "property damage" arising out of "your products" which are distributed or sold in the regular course of the vendor's business and only if this Coverage Part provides coverage for "bodily injury" or "property damage" included within the "products -completed operations hazard". b. The insurance afforded to the vendor is subject to the following additional exclusions: (1) This insurance does not apply to: (a) "Bodily injury" or "property damage" for which the vendor is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the vendor would have in the absence of the contract or agreement; (b) Any express warranty unauthorized by you; (c) Any physical or chemical change in the product made intentionally by the vendor; (d) Repackaging, unless unpacked solely for the purpose of inspection, demonstration, testing, or the substitution of parts under instructions from the manufacturer, and then repackaged in the original container; (e) Any failure to make such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products; (f) Demonstration, installation, servicing or repair operations, except such operations performed at the vendor's premises in connection with the sale of the product; Products which, after distribution or sale by you, have been labeled or relabeled or used as a container, part or ingredient of any other thing or substance by or for the vendor; or (h) "Bodily injury" or "property damage" arising out of the sole negligence of the vendor for its own acts or omissions or those of its employees or anyone else acting on its behalf. However, this exclusion does not apply to: (i) The exceptions contained in Subparagraphs (d) or (f); or (ii) Such inspections, adjustments, tests or servicing as the vendor has agreed to make or normally undertakes to make in the usual course of business, in connection with the distribution or sale of the products. (2) This insurance does not apply to any insured person or organization from whom you have acquired such products, or any ingredient, part or container, entering into, accompanying or containing such products. 8. Additional Insured — Controlling Interest WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured — Controlling Interest, but only with respect to their liability arising out of: a. Their financial control of you; or b. Premises they own, maintain or control while you lease or occupy these premises. (g) Form SS 00 08 04 05 363 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM 13 Page 19 of 24 BUSINESS LIABILITY COVERAGE FORM This insurance does not apply to structural alterations, new construction and demolition operations performed by or for that person or organization. 9. Additional Insured — Owners, Lessees Or Contractors — Scheduled Person Or Organization a. WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or organization(s) shown in the Declarations as an Additional Insured — Owner, Lessees Or Contractors, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by your acts or omissions or the acts or omissions of those acting on your behalf: (1) In the performance of your ongoing operations for the additional insured(s); or (2) In connection with "your work" performed for that additional insured and included within the "products - completed operations hazard", but only if this Coverage Part provides coverage for "bodily injury" or "property damage" included within the "products -completed operations hazard". b. With respect to the insurance afforded to these additional insureds, this insurance does not apply to "bodily injury", "property damage" or "personal an advertising injury" arising out of the rendering of, or the failure to render, any professional architectural, engineering or surveying services, including: (1) The preparing, approving, or failure to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders, designs or drawings and specifications; or (2) Supervisory, inspection, architectural or engineering activities. 10. Additional Insured — Co -Owner Of Insured Premises WHO IS AN INSURED under Section C. is amended to include as an additional insured the person(s) or Organization(s) shown in the Declarations as an Additional Insured — Co - Owner Of Insured Premises, but only with respect to their liability as co-owner of the premises shown in the Declarations. The limits of insurance that apply to additional insureds are described in Section D. — Limits Of Insurance. How this insurance applies when other insurance is available to an additional insured is described in the Other Insurance Condition in Section E. — Liability And Medical Expenses General Conditions. G. LIABILITY AND MEDICAL EXPENSES DEFINITIONS 1. "Advertisement" means the widespread public dissemination of information or images that has the purpose of inducing the sale of goods, products or services through: Radio; Television; Billboard; Magazine; Newspaper; b. The Internet, but only that part of a web site that is about goods, products or services for the purposes of inducing the sale of goods, products or services; or c. Any other publication that is given widespread public distribution. However, "advertisement" does not include: a. The design, printed material, information or images contained in, on or upon the packaging or labeling of any goods or products; or b. An interactive conversation between or among persons through a computer network. 2. "Advertising idea" means any idea for an "advertisement". 3. "Asbestos hazard" means an exposure or threat of exposure to the actual or alleged properties of asbestos and includes the mere presence of asbestos in any form. 4. "Auto" means a land motor vehicle, trailer or semi -trailer designed for travel on public roads, including any attached machinery or equipment. But "auto" does not include "mobile equipment". 5. "Bodily injury" means physical: a. Injury; b. Sickness; or c. Disease sustained by a person and, if arising out of the above, mental anguish or death at any time. 6. "Coverage territory" means: Page 20 of 24 364 of 585 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 PM f 13 Form SS 00 08 04 05 TRAVELERS Insured: Phase II Systems Policy No.: UB2J193983 Effective Date: 6/1/2017 WORKERS COMPENSATION AND EMPLOYERS LIABILITY ENDORSEMENT WC 99 03 76 (00) dba: PARS WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT — CALIFORNIA (BLANKET WAIVER) We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. The additional premium for this endorsement shall be 5.000% of the California workers' compensation premium otherwise due on such remuneration. Schedule Person or Organization ANY PERSON OR ORGANIZATION WITH WHOM YOU AGREE IN WRITING TO WAIVE YOUR RIGHT TO RECOVER AGAINST THEM. YOU MUST AGREE TO THIS WAIVER PRIOR TO THE DATE OF LOSS Job Description: Projects as on file with the insured. Authorized Representative 38993577 117-18 CA GL-HNOA-WC-PL I Sherry Young 111/28/2017 2:13:39 P 365 of 585 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH A MUTUAL INDEMNITY AND HOLD HARMLESS PROVISION WITH PHASE II SYSTEMS DBA PUBLIC AGENCY RETIREMENT SERVICES FOR PENSION TRUST ADMINISTRATION SERVICES FOR THE PERIOD DECEMBER 20, 2017 THROUGH DECEMBER 31, 2020, AND AUTHORIZING THE CITY MANAGER TO EXECUTE UP TO TWO ADDITIONAL ONE-YEAR EXTENSIONS WHEREAS, the City desires to employ a consultant to provide comprehensive trust administration services for the City's irrevocable supplemental pension trust (the "Trust") for the period of December 20, 2017 through December 31, 2020; and WHEREAS, the City has determined that the Phase II Systems dba Public Agency Retirement Services (PARS) is an administrator of irrevocable supplemental pension trusts and is qualified by experience and ability to perform the services desired by the City, and PARS is willing to perform such services; and WHEREAS, the agreement contains a mutual indemnity and hold harmless provision with compensation deducted from the Trust's assets. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the Mayor to execute an agreement with a mutual indemnity and hold harmless provision with Phase II Systems dba Public Agency Retirement Services to provide pension trust administration services for the period of December 20, 2017 through December 31, 2020. Said Agreement is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the City Council authorizes the City Manager to execute up to two additional one-year extensions of the agreement. PASSED and ADOPTED this 19th day of December, 2017. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ron Morrison, Mayor 366 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 367 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City approving effective January 1, 2018, the salary schedule for the Part -Time and Seasonal employee group, as amended: 1) adjusting upward classifications with salary ranges below the 2018 State of 367 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City approving effective January 1, 2018, the salary schedule for the Part -Time and Seasonal employee group, as amended: 1) adjusting upward classifications with salary ranges below the 2018 State of California minimum wage; and 2) adjusting upward classifications impacted by the salary compression resulting from the minimum wage increases. PREPARED BY: Stacey Stevenson PHONE: 336-4308 DEPARTMENT: Human Resources APPROVED BY (:11C'#1 EXPLANATION: On April 4, 2016, California Governor Jerry Brown signed Senate Bill 3 increasing California's minimum wage each year until it reaches $15.00 on January 1, 2022. Effective January 1, 2018, minimum wage will increase to $11.00. Under the current City of National City compensation plan, there are seven classifications with top pay steps that are below $11.00. In order to comply with State law, staff hereby requests authorization to move those classifications to new salary ranges: Cashier, Dishwasher, Kitchen Aide and Recreation Aide from pt042 to pt048; Recreation Leader I from pt045 to pt051; and Police Cadet and Student Worker from pt047 to pt048 effective January 1, 2018. Should the City Council approve this adjustment, the following classifications will also advance salary ranges in order to maintain the appropriate pay differentials within the classification series: Food Services Worker from pt053 to pt058; Recreation Leader II from pt054 to pt059; Recreation Specialist and Stock Clerk from pt059 to pt064; Recreation Leader III and Lifeguard from pt064 to pt070; Office Aide from pt065 to pt071; Library Clerk from pt066 to pt072; Senior Lifeguard from pt075 to pt080; and Aquatics Manager from pt086 to pt091. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: ,ems Finance The estimated fiscal impact for Fiscal Year 2018 is $11,235.46. Impacted departments may be able to absorb a portion of the estimated increase through salary savings. Any required adjustments to appropriations will be requested in the Fiscal Year 2018 Mid -Year budget package. ENVIRONMENTAL REVIEW: This is not a project and is therefore not subject to environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: 1 STAFF RECOMMENDATION: Adopt the resolution approving the amendment to the salary schedule for the Part -Time and Seasonal employee group. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: Resolution Part -Time and Seasonal Employee Salary Schedule 1368 or bbb Exhibit A City of National City Human Resources Department PART-TIME and SEASONAL EMPLOYEE GROUP SALARY SCHEDULE January 1, 2018 POSITION TITLE SALARY RANGE HOURLY SALARY Aquatics Manager pt091 $13.15 — $16.00 Cashier pt048 $9.07 — $11.03 Dishwasher pt048 $9.07 — $11.03 Equipment Service Trainee pt057 $9.79 — $11.90 Food Services Worker pt058 $9.87 — $12.00 Kitchen Aide pt048 $9.07 — $11.03 Librarian pt160 $23.87 — $29.01 Library Assistant pt099 $14.54 — $17.68 Library Clerk (Grant Funded) pt072 $11.12 — $13.51 Library Technician pt124 $18.04 — $21.93 Lifeguard/Swim Instructor pt070 $10.91 — $13.25 Management Intern (Graduate) N/A $16.00 Management Intern (Undergraduate) N/A $13.00 Office Aide pt071 $11.01 — $13.38 Police Cadet pt048 $9.07 — $11.03 Police Dispatcher pt156 $24.04 — $29.21 369 of 585 Exhibit A City of National City Human Resources Department PART-TIME and SEASONAL EMPLOYEE GROUP SALARY SCHEDULE January 1, 2018 POSITION TITLE SALARY RANGE HOURLY SALARY Police Records Clerk pt099 $14.54 — $17.68 Property & Evidence Specialist I pt127 $18.53 — $22.53 Recreation Aide pt048 $9.07 — $11.03 Recreation Leader I pt051 $9.29 — $11.28 Recreation Leader II pt059 $9.95 — $12.10 Recreation Leader III pt070 $10.91 — $13.25 Recreation Specialist pt064 $10.39 — $12.63 Seasonal Park Aide pt080 $11.93 — $14.50 Senior Library Technician pt129 $18.88 — $22.95 Senior Lifeguard pt080 $11.93 — $14.50 Stock Clerk/Storekeeper pt064 $10.39 — $12.63 Student Worker pt048 $9.07 — $11.03 370 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt001 A 6.21 496.80 496.80 1,076.40 12,916.80 B 6.52 521.60 521.60 1,130.13 13,561.60 C 6.84 547.20 547.20 1,185.60 14,227.20 D 7.19 575.20 575.20 1,246.27 14,955.20 E 7.54 603.20 603.20 1,306.93 15,683.20 pt002 A 6.27 501.60 501.60 1,086.80 13,041.60 B 6.58 526.40 526.40 1,140.53 13,686.40 C 6.92 553.60 553.60 1,199.47 14,393.60 D 7.25 580.00 580.00 1,256.67 15,080.00 E 7.62 609.60 609.60 1,320.80 15,849.60 pt003 A 6.32 505.60 505.60 1,095.47 13,145.60 B 6.63 530.40 530.40 1,149.20 13,790.40 C 6.97 557.60 557.60 1,208.13 14,497.60 D 7.31 584.80 584.80 1,267.07 15,204.80 E 7.68 614.40 614.40 1,331.20 15,974.40 pt004 A 6.36 508.80 508.80 1,102.40 13,228.80 B 6.68 534.40 534.40 1,157.87 13,894.40 C 7.01 560.80 560.80 1,215.07 14,580.80 D 7.37 589.60 589.60 1,277.47 15,329.60 E 7.73 618.40 618.40 1,339.87 16,078.40 pt005 A 6.38 510.40 510.40 1,105.87 13,270.40 B 6.71 536.80 536.80 1,163.07 13,956.80 C 7.04 563.20 563.20 1,220.27 14,643.20 D 7.40 592.00 592.00 1,282.67 15,392.00 E 7.76 620.80 620.80 1,345.07 16,140.80 pt006 A 6.43 514.40 514.40 1,114.53 13,374.40 B 6.76 540.80 540.80 1,171.73 14,060.80 C 7.08 566.40 566.40 1,227.20 14,726.40 D 7.45 596.00 596.00 1,291.33 15,496.00 E 7.83 626.40 626.40 1,357.20 16,286.40 pt007 A 6.48 518.40 518.40 1,123.20 13,478.40 B 6.80 544.00 544.00 1,178.67 14,144.00 C 7.15 572.00 572.00 1,239.33 14,872.00 D 7.49 599.20 599.20 1,298.27 15,579.20 E 7.88 630.40 630.40 1,365.87 16,390.40 Page 1 of 26 371 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt008 A 6.53 522.40 522.40 1,131.87 13,582.40 B 6.85 548.00 548.00 1,187.33 14,248.00 C 7.20 576.00 576.00 1,248.00 14,976.00 D 7.55 604.00 604.00 1,308.67 15,704.00 E 7.94 635.20 635.20 1,376.27 16,515.20 pt009 A 6.59 527.20 527.20 1,142.27 13,707.20 B 6.93 554.40 554.40 1,201.20 14,414.40 C 7.26 580.80 580.80 1,258.40 15,100.80 D 7.64 611.20 611.20 1,324.27 15,891.20 E 8.01 640.80 640.80 1,388.40 16, 660.80 pt010 A 6.66 532.80 532.80 1,154.40 13,852.80 B 6.99 559.20 559.20 1,211.60 14,539.20 C 7.33 586.40 586.40 1,270.53 15,246.40 D 7.70 616.00 616.00 1,334.67 16,016.00 E 8.09 647.20 647.20 1,402.27 16,827.20 pt011 A 6.71 536.80 536.80 1,163.07 13,956.80 B 7.03 562.40 562.40 1,218.53 14,622.40 C 7.39 591.20 591.20 1,280.93 15,371.20 D 7.75 620.00 620.00 1,343.33 16,120.00 E 8.14 651.20 651.20 1,410.93 16,931.20 pt012 A 6.77 541.60 541.60 1,173.47 14,081.60 B 7.10 568.00 568.00 1,230.67 14,768.00 C 7.46 596.80 596.80 1,293.07 15,516.80 D 7.84 627.20 627.20 1,358.93 16,307.20 E 8.23 658.40 658.40 1,426.53 17,118.40 pt013 A 6.82 545.60 545.60 1,182.13 14,185.60 B 7.17 573.60 573.60 1,242.80 14,913.60 C 7.52 601.60 601.60 1,303.47 15,641.60 D 7.90 632.00 632.00 1,369.33 16,432.00 E 8.30 664.00 664.00 1,438.67 17,264.00 pt014 A 6.85 548.00 548.00 1,187.33 14,248.00 B 7.20 576.00 576.00 1,248.00 14,976.00 C 7.55 604.00 604.00 1,308.67 15,704.00 D 7.94 635.20 635.20 1,376.27 16,515.20 E 8.34 667.20 667.20 1,445.60 17,347.20 Page 2 of 26 372 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt015 A 6.90 552.00 552.00 1,196.00 14,352.00 B 7.25 580.00 580.00 1,256.67 15,080.00 C 7.62 609.60 609.60 1,320.80 15,849.60 D 7.98 638.40 638.40 1,383.20 16,598.40 E 8.39 671.20 671.20 1,454.27 17,451.20 pt016 A 7.00 560.00 560.00 1,213.33 14,560.00 B 7.36 588.80 588.80 1,275.73 15,308.80 C 7.71 616.80 616.80 1,336.40 16, 036.80 D 8.11 648.80 648.80 1,405.73 16,868.80 E 8.52 681.60 681.60 1,476.80 17,721.60 pt017 A 7.05 564.00 564.00 1,222.00 14,664.00 B 7.41 592.80 592.80 1,284.40 15,412.80 C 7.77 621.60 621.60 1,346.80 16,161.60 D 8.16 652.80 652.80 1,414.40 16,972.80 E 8.58 686.40 686.40 1,487.20 17,846.40 pt018 A 7.12 569.60 569.60 1,234.13 14,809.60 B 7.47 597.60 597.60 1,294.80 15,537.60 C 7.85 628.00 628.00 1,360.67 16,328.00 D 8.24 659.20 659.20 1,428.27 17,139.20 E 8.64 691.20 691.20 1,497.60 17,971.20 pt019 A 7.19 575.20 575.20 1,246.27 14,955.20 B 7.54 603.20 603.20 1,306.93 15,683.20 C 7.92 633.60 633.60 1,372.80 16,473.60 D 8.32 665.60 665.60 1,442.13 17,305.60 E 8.73 698.40 698.40 1,513.20 18,158.40 pt020 A 7.22 577.60 577.60 1,251.47 15,017.60 B 7.59 607.20 607.20 1,315.60 15,787.20 C 7.96 636.80 636.80 1,379.73 16,556.80 D 8.36 668.80 668.80 1,449.07 17,388.80 E 8.78 702.40 702.40 1,521.87 18,262.40 pt021 A 7.28 582.40 582.40 1,261.87 15,142.40 B 7.65 612.00 612.00 1,326.00 15,912.00 C 8.03 642.40 642.40 1,391.87 16,702.40 D 8.43 674.40 674.40 1,461.20 17,534.40 E 8.85 708.00 708.00 1,534.00 18,408.00 Page 3 of 26 373 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt022 A 7.32 585.60 585.60 1,268.80 15,225.60 B 7.69 615.20 615.20 1,332.93 15,995.20 C 8.08 646.40 646.40 1,400.53 16,806.40 D 8.48 678.40 678.40 1,469.87 17,638.40 E 8.91 712.80 712.80 1,544.40 18, 532.80 pt023 A 7.40 592.00 592.00 1,282.67 15,392.00 B 7.75 620.00 620.00 1,343.33 16,120.00 C 8.15 652.00 652.00 1,412.67 16,952.00 D 8.56 684.80 684.80 1,483.73 17,804.80 E 8.99 719.20 719.20 1,558.27 18,699.20 pt024 A 7.45 596.00 596.00 1,291.33 15,496.00 B 7.83 626.40 626.40 1,357.20 16,286.40 C 8.21 656.80 656.80 1,423.07 17,076.80 D 8.62 689.60 689.60 1,494.13 17,929.60 E 9.06 724.80 724.80 1,570.40 18,844.80 pt025 A 7.51 600.80 600.80 1,301.73 15,620.80 B 7.89 631.20 631.20 1,367.60 16,411.20 C 8.29 663.20 663.20 1,436.93 17,243.20 D 8.70 696.00 696.00 1,508.00 18,096.00 E 9.14 731.20 731.20 1,584.27 19,011.20 pt026 A 7.59 607.20 607.20 1,315.60 15,787.20 B 7.96 636.80 636.80 1,379.73 16,556.80 C 8.36 668.80 668.80 1,449.07 17,388.80 D 8.78 702.40 702.40 1,521.87 18,262.40 E 9.23 738.40 738.40 1,599.87 19,198.40 0.00 pt027 A 7.63 610.40 610.40 1,322.53 15,870.40 B 8.01 640.80 640.80 1,388.40 16, 660.80 C 8.41 672.80 672.80 1,457.73 17,492.80 D 8.83 706.40 706.40 1,530.53 18,366.40 E 9.27 741.60 741.60 1,606.80 19,281.60 Page 4 of 26 374 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt028 A 7.69 615.20 615.20 1,332.93 15,995.20 B 8.08 646.40 646.40 1,400.53 16,806.40 C 8.48 678.40 678.40 1,469.87 17,638.40 D 8.91 712.80 712.80 1,544.40 18, 532.80 E 9.35 748.00 748.00 1,620.67 19,448.00 pt029 A 7.84 627.20 627.20 1,358.93 16,307.20 B 8.13 650.40 650.40 1,409.20 16,910.40 C 8.54 683.20 683.20 1,480.27 17,763.20 D 8.96 716.80 716.80 1,553.07 18,636.80 E 9.41 752.80 752.80 1,631.07 19, 572.80 pt030 A 7.79 623.20 623.20 1,350.27 16,203.20 B 8.21 656.80 656.80 1,423.07 17,076.80 C 8.59 687.20 687.20 1,488.93 17,867.20 D 9.02 721.60 721.60 1,563.47 18,761.60 E 9.47 757.60 757.60 1,641.47 19,697.60 pt031 A 7.86 628.80 628.80 1,362.40 16,348.80 B 8.25 660.00 660.00 1,430.00 17,160.00 C 8.67 693.60 693.60 1,502.80 18,033.60 D 9.09 727.20 727.20 1,575.60 18,907.20 E 9.56 764.80 764.80 1,657.07 19,884.80 pt032 A 7.94 635.20 635.20 1,376.27 16,515.20 B 8.34 667.20 667.20 1,445.60 17,347.20 C 8.76 700.80 700.80 1,518.40 18,220.80 D 9.19 735.20 735.20 1,592.93 19,115.20 E 9.65 772.00 772.00 1,672.67 20,072.00 pt033 A 7.98 638.40 638.40 1,383.20 16,598.40 B 8.38 670.40 670.40 1,452.53 17,430.40 C 8.81 704.80 704.80 1,527.07 18, 324.80 D 9.25 740.00 740.00 1,603.33 19,240.00 E 9.71 776.80 776.80 1,683.07 20,196.80 pt034 A 8.06 644.80 644.80 1,397.07 16,764.80 B 8.46 676.80 676.80 1,466.40 17,596.80 C 8.89 711.20 711.20 1,540.93 18,491.20 D 9.33 746.40 746.40 1,617.20 19,406.40 E 9.80 784.00 784.00 1,698.67 20,384.00 Page 5 of 26 375 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt035 A 8.13 650.40 650.40 1,409.20 16,910.40 B 8.54 683.20 683.20 1,480.27 17,763.20 C 8.96 716.80 716.80 1,553.07 18,636.80 D 9.41 752.80 752.80 1,631.07 19, 572.80 E 9.88 790.40 790.40 1,712.53 20,550.40 pt036 A 8.18 654.40 654.40 1,417.87 17,014.40 B 8.60 688.00 688.00 1,490.67 17,888.00 C 9.03 722.40 722.40 1,565.20 18,782.40 D 9.48 758.40 758.40 1,643.20 19,718.40 E 9.95 796.00 796.00 1,724.67 20,696.00 pt037 A 8.29 663.20 663.20 1,436.93 17,243.20 B 8.70 696.00 696.00 1,508.00 18,096.00 C 9.14 731.20 731.20 1,584.27 19,011.20 D 9.59 767.20 767.20 1,662.27 19,947.20 E 10.07 805.60 805.60 1,745.47 20,945.60 pt038 A 8.33 666.40 666.40 1,443.87 17,326.40 B 8.74 699.20 699.20 1,514.93 18,179.20 C 9.18 734.40 734.40 1,591.20 19,094.40 D 9.64 771.20 771.20 1,670.93 20,051.20 E 10.12 809.60 809.60 1,754.13 21,049.60 pt039 A 8.41 672.80 672.80 1,457.73 17,492.80 B 8.84 707.20 707.20 1,532.27 18,387.20 C 9.28 742.40 742.40 1,608.53 19,302.40 D 9.74 779.20 779.20 1,688.27 20,259.20 E 10.24 819.20 819.20 1,774.93 21,299.20 pt040 A 8.48 678.40 678.40 1,469.87 17,638.40 B 8.91 712.80 712.80 1,544.40 18, 532.80 C 9.35 748.00 748.00 1,620.67 19,448.00 D 9.82 785.60 785.60 1,702.13 20,425.60 E 10.31 824.80 824.80 1,787.07 21,444.80 pt041 A 8.55 684.00 684.00 1,482.00 17,784.00 B 8.97 717.60 717.60 1,554.80 18,657.60 C 9.42 753.60 753.60 1,632.80 19,593.60 D 9.89 791.20 791.20 1,714.27 20,571.20 E 10.39 831.20 831.20 1,800.93 21,611.20 Page 6 of 26 376 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt042 A 8.64 691.20 691.20 1,497.60 17,971.20 B 9.07 725.60 725.60 1,572.13 18,865.60 C 9.52 761.60 761.60 1,650.13 19,801.60 D 10.01 800.80 800.80 1,735.07 20,820.80 E 10.50 840.00 840.00 1,820.00 21,840.00 pt043 A 8.72 697.60 697.60 1,511.47 18,137.60 B 9.16 732.80 732.80 1,587.73 19,052.80 C 9.61 768.80 768.80 1,665.73 19, 988.80 D 10.09 807.20 807.20 1,748.93 20,987.20 E 10.59 847.20 847.20 1,835.60 22,027.20 pt044 A 8.77 701.60 701.60 1,520.13 18,241.60 B 9.20 736.00 736.00 1,594.67 19,136.00 C 9.66 772.80 772.80 1,674.40 20,092.80 D 10.15 812.00 812.00 1,759.33 21,112.00 E 10.66 852.80 852.80 1,847.73 22,172.80 pt045 A 8.86 708.80 708.80 1,535.73 18,428.80 B 9.30 744.00 744.00 1,612.00 19,344.00 C 9.78 782.40 782.40 1,695.20 20,342.40 D 10.26 820.80 820.80 1,778.40 21,340.80 E 10.77 861.60 861.60 1,866.80 22,401.60 pt046 A 8.93 714.40 714.40 1,547.87 18,574.40 B 9.37 749.60 749.60 1,624.13 19,489.60 C 9.84 787.20 787.20 1,705.60 20,467.20 D 10.33 826.40 826.40 1,790.53 21,486.40 E 10.85 868.00 868.00 1,880.67 22,568.00 pt047 A 8.97 717.60 717.60 1,554.80 18,657.60 B 9.42 753.60 753.60 1,632.80 19,593.60 C 9.88 790.40 790.40 1,712.53 20,550.40 D 10.39 831.20 831.20 1,800.93 21,611.20 E 10.91 872.80 872.80 1,891.07 22,692.80 pt048 A 9.07 725.60 725.60 1,572.13 18,865.60 B 9.53 762.40 762.40 1,651.87 19,822.40 C 10.01 800.80 800.80 1,735.07 20,820.80 D 10.51 840.80 840.80 1,821.73 21,860.80 E 11.03 882.40 882.40 1,911.87 22,942.40 Page 7 of 26 377 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt049 A 9.14 731.20 731.20 1,584.27 19,011.20 B 9.60 768.00 768.00 1,664.00 19,968.00 C 10.07 805.60 805.60 1,745.47 20,945.60 D 10.57 845.60 845.60 1,832.13 21,985.60 E 11.12 889.60 889.60 1,927.47 23,129.60 pt050 A 9.22 737.60 737.60 1,598.13 19,177.60 B 9.67 773.60 773.60 1,676.13 20,113.60 C 10.16 812.80 812.80 1,761.07 21,132.80 D 10.68 854.40 854.40 1,851.20 22,214.40 E 11.20 896.00 896.00 1,941.33 23,296.00 pt051 A 9.29 743.20 743.20 1,610.27 19,323.20 B 9.75 780.00 780.00 1,690.00 20,280.00 C 10.25 820.00 820.00 1,776.67 21,320.00 D 10.75 860.00 860.00 1,863.33 22,360.00 E 11.28 902.40 902.40 1,955.20 23,462.40 pt052 A 9.35 748.00 748.00 1,620.67 19,448.00 B 9.82 785.60 785.60 1,702.13 20,425.60 C 10.31 824.80 824.80 1,787.07 21,444.80 D 10.82 865.60 865.60 1,875.47 22,505.60 E 11.37 909.60 909.60 1,970.80 23,649.60 pt053 A 9.43 754.40 754.40 1,634.53 19,614.40 B 9.90 792.00 792.00 1,716.00 20,592.00 C 10.41 832.80 832.80 1,804.40 21,652.80 D 10.93 874.40 874.40 1,894.53 22,734.40 E 11.47 917.60 917.60 1,988.13 23,857.60 pt054 A 9.51 760.80 760.80 1,648.40 19,780.80 B 9.99 799.20 799.20 1,731.60 20,779.20 C 10.49 839.20 839.20 1,818.27 21,819.20 D 11.01 880.80 880.80 1,908.40 22,900.80 E 11.57 925.60 925.60 2,005.47 24,065.60 pt055 A 9.61 768.80 768.80 1,665.73 19,988.80 B 10.09 807.20 807.20 1,748.93 20,987.20 C 10.59 847.20 847.20 1,835.60 22,027.20 D 11.13 890.40 890.40 1,929.20 23,150.40 E 11.68 934.40 934.40 2,024.53 24,294.40 Page 8 of 26 378 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt056 A 9.69 775.20 775.20 1,679.60 20,155.20 B 10.17 813.60 813.60 1,762.80 21,153.60 C 10.69 855.20 855.20 1,852.93 22,235.20 D 11.21 896.80 896.80 1,943.07 23,316.80 E 11.77 941.60 941.60 2,040.13 24,481.60 pt057 A 9.79 783.20 783.20 1,696.93 20,363.20 B 10.28 822.40 822.40 1,781.87 21,382.40 C 10.79 863.20 863.20 1,870.27 22,443.20 D 11.34 907.20 907.20 1,965.60 23,587.20 E 11.90 952.00 952.00 2,062.67 24,752.00 pt058 A 9.87 789.60 789.60 1,710.80 20,529.60 B 10.36 828.80 828.80 1,795.73 21,548.80 C 10.89 871.20 871.20 1,887.60 22,651.20 D 11.43 914.40 914.40 1,981.20 23,774.40 E 12.00 960.00 960.00 2,080.00 24,960.00 pt059 A 9.95 796.00 796.00 1,724.67 20,696.00 B 10.46 836.80 836.80 1,813.07 21,756.80 C 10.97 877.60 877.60 1,901.47 22,817.60 D 11.52 921.60 921.60 1,996.80 23,961.60 E 12.10 968.00 968.00 2,097.33 25,168.00 pt060 A 10.04 803.20 803.20 1,740.27 20,883.20 B 10.53 842.40 842.40 1,825.20 21,902.40 C 11.05 884.00 884.00 1,915.33 22,984.00 D 11.62 929.60 929.60 2,014.13 24,169.60 E 12.20 976.00 976.00 2,114.67 25,376.00 pt061 A 10.10 808.00 808.00 1,750.67 21,008.00 B 10.60 848.00 848.00 1,837.33 22,048.00 C 11.15 892.00 892.00 1,932.67 23,192.00 D 11.69 935.20 935.20 2,026.27 24,315.20 E 12.29 983.20 983.20 2,130.27 25,563.20 pt062 A 10.23 818.40 818.40 1,773.20 21,278.40 B 10.73 858.40 858.40 1,859.87 22,318.40 C 11.26 900.80 900.80 1,951.73 23,420.80 D 11.83 946.40 946.40 2,050.53 24,606.40 E 12.42 993.60 993.60 2,152.80 25,833.60 Page 9 of 26 379 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt063 A 10.31 824.80 824.80 1,787.07 21,444.80 B 10.82 865.60 865.60 1,875.47 22,505.60 C 11.37 909.60 909.60 1,970.80 23,649.60 D 11.93 954.40 954.40 2,067.87 24,814.40 E 12.53 1,002.40 1,002.40 2,171.87 26,062.40 pt064 A 10.39 831.20 831.20 1,800.93 21,611.20 B 10.91 872.80 872.80 1,891.07 22,692.80 C 11.45 916.00 916.00 1,984.67 23,816.00 D 12.03 962.40 962.40 2,085.20 25,022.40 E 12.63 1,010.40 1,010.40 2,189.20 26,270.40 pt065 A 10.48 838.40 838.40 1,816.53 21,798.40 B 11.00 880.00 880.00 1,906.67 22,880.00 C 11.56 924.80 924.80 2,003.73 24,044.80 D 12.13 970.40 970.40 2,102.53 25,230.40 E 12.74 1,019.20 1,019.20 2,208.27 26,499.20 pt066 A 10.56 844.80 844.80 1,830.40 21,964.80 B 11.10 888.00 888.00 1,924.00 23,088.00 C 11.65 932.00 932.00 2,019.33 24,232.00 D 12.23 978.40 978.40 2,119.87 25,438.40 E 12.85 1,028.00 1,028.00 2,227.33 26,728.00 pt067 A 10.65 852.00 852.00 1,846.00 22,152.00 B 11.18 894.40 894.40 1,937.87 23,254.40 C 11.74 939.20 939.20 2,034.93 24,419.20 D 12.32 985.60 985.60 2,135.47 25,625.60 E 12.95 1,036.00 1,036.00 2,244.67 26,936.00 pt068 A 10.74 859.20 859.20 1,861.60 22,339.20 B 11.27 901.60 901.60 1,953.47 23,441.60 C 11.84 947.20 947.20 2,052.27 24,627.20 D 12.43 994.40 994.40 2,154.53 25,854.40 E 13.06 1,044.80 1,044.80 2,263.73 27,164.80 pt069 A 10.82 865.60 865.60 1,875.47 22,505.60 B 11.38 910.40 910.40 1,972.53 23,670.40 C 11.94 955.20 955.20 2,069.60 24,835.20 D 12.54 1,003.20 1,003.20 2,173.60 26,083.20 E 13.16 1,052.80 1,052.80 2,281.07 27,372.80 Page 10 of 26 380 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt070 A 10.91 872.80 872.80 1,891.07 22,692.80 B 11.45 916.00 916.00 1,984.67 23,816.00 C 12.03 962.40 962.40 2,085.20 25,022.40 D 12.62 1,009.60 1,009.60 2,187.47 26,249.60 E 13.25 1,060.00 1,060.00 2,296.67 27,560.00 pt071 A 11.01 880.80 880.80 1,908.40 22,900.80 B 11.57 925.60 925.60 2,005.47 24,065.60 C 12.13 970.40 970.40 2,102.53 25,230.40 D 12.75 1,020.00 1,020.00 2,210.00 26,520.00 E 13.38 1,070.40 1,070.40 2,319.20 27,830.40 pt072 A 11.12 889.60 889.60 1,927.47 23,129.60 B 11.66 932.80 932.80 2,021.07 24,252.80 C 12.25 980.00 980.00 2,123.33 25,480.00 D 12.86 1,028.80 1,028.80 2,229.07 26,748.80 E 13.51 1,080.80 1,080.80 2,341.73 28,100.80 pt073 A 11.22 897.60 897.60 1,944.80 23,337.60 B 11.79 943.20 943.20 2,043.60 24,523.20 C 12.37 989.60 989.60 2,144.13 25,729.60 D 12.99 1,039.20 1,039.20 2,251.60 27,019.20 E 13.65 1,092.00 1,092.00 2,366.00 28,392.00 pt074 A 11.33 906.40 906.40 1,963.87 23,566.40 B 11.89 951.20 951.20 2,060.93 24,731.20 C 12.49 999.20 999.20 2,164.93 25,979.20 D 13.11 1,048.80 1,048.80 2,272.40 27,268.80 E 13.76 1,100.80 1,100.80 2,385.07 28,620.80 pt075 A 11.42 913.60 913.60 1,979.47 23,753.60 B 11.99 959.20 959.20 2,078.27 24,939.20 C 12.59 1,007.20 1,007.20 2,182.27 26,187.20 D 13.22 1,057.60 1,057.60 2,291.47 27,497.60 E 13.87 1,109.60 1,109.60 2,404.13 28,849.60 pt076 A 11.53 922.40 922.40 1,998.53 23,982.40 B 12.10 968.00 968.00 2,097.33 25,168.00 C 12.70 1,016.00 1,016.00 2,201.33 26,416.00 D 13.34 1,067.20 1,067.20 2,312.27 27,747.20 E 14.01 1,120.80 1,120.80 2,428.40 29,140.80 Page 11 of 26 381 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt077 A 11.62 929.60 929.60 2,014.13 24,169.60 B 12.19 975.20 975.20 2,112.93 25,355.20 C 12.80 1,024.00 1,024.00 2,218.67 26,624.00 D 13.44 1,075.20 1,075.20 2,329.60 27,955.20 E 14.12 1,129.60 1,129.60 2,447.47 29,369.60 pt078 A 11.75 940.00 940.00 2,036.67 24,440.00 B 12.33 986.40 986.40 2,137.20 25,646.40 C 12.95 1,036.00 1,036.00 2,244.67 26,936.00 D 13.59 1,087.20 1,087.20 2,355.60 28,267.20 E 14.27 1,141.60 1,141.60 2,473.47 29,681.60 pt079 A 11.83 946.40 946.40 2,050.53 24,606.40 B 12.42 993.60 993.60 2,152.80 25,833.60 C 13.04 1,043.20 1,043.20 2,260.27 27,123.20 D 13.69 1,095.20 1,095.20 2,372.93 28,475.20 E 14.38 1,150.40 1,150.40 2,492.53 29,910.40 pt080 A 11.93 954.40 954.40 2,067.87 24,814.40 B 12.53 1,002.40 1,002.40 2,171.87 26,062.40 C 13.15 1,052.00 1,052.00 2,279.33 27,352.00 D 13.81 1,104.80 1,104.80 2,393.73 28,724.80 E 14.50 1,160.00 1,160.00 2,513.33 30,160.00 pt081 A 12.02 961.60 961.60 2,083.47 25,001.60 B 12.62 1,009.60 1,009.60 2,187.47 26,249.60 C 13.24 1,059.20 1,059.20 2,294.93 27,539.20 D 13.91 1,112.80 1,112.80 2,411.07 28,932.80 E 14.61 1,168.80 1,168.80 2,532.40 30,388.80 pt082 A 12.14 971.20 971.20 2,104.27 25,251.20 B 12.75 1,020.00 1,020.00 2,210.00 26,520.00 C 13.39 1,071.20 1,071.20 2,320.93 27,851.20 D 14.06 1,124.80 1,124.80 2,437.07 29,244.80 E 14.76 1,180.80 1,180.80 2,558.40 30,700.80 pt083 A 12.23 978.40 978.40 2,119.87 25,438.40 B 12.85 1,028.00 1,028.00 2,227.33 26,728.00 C 13.50 1,080.00 1,080.00 2,340.00 28,080.00 D 14.17 1,133.60 1,133.60 2,456.13 29,473.60 E 14.88 1,190.40 1,190.40 2,579.20 30,950.40 Page 12 of 26 382 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt084 A 12.32 985.60 985.60 2,135.47 25,625.60 B 12.93 1,034.40 1,034.40 2,241.20 26,894.40 C 13.58 1,086.40 1,086.40 2,353.87 28,246.40 D 14.26 1,140.80 1,140.80 2,471.73 29,660.80 E 14.97 1,197.60 1,197.60 2,594.80 31,137.60 pt085 A 12.43 994.40 994.40 2,154.53 25,854.40 B 13.06 1,044.80 1,044.80 2,263.73 27,164.80 C 13.70 1,096.00 1,096.00 2,374.67 28,496.00 D 14.40 1,152.00 1,152.00 2,496.00 29,952.00 E 15.11 1,208.80 1,208.80 2,619.07 31,428.80 pt086 A 12.58 1,006.40 1,006.40 2,180.53 26,166.40 B 13.21 1,056.80 1,056.80 2,289.73 27,476.80 C 13.86 1,108.80 1,108.80 2,402.40 28,828.80 D 14.56 1,164.80 1,164.80 2,523.73 30,284.80 E 15.30 1,224.00 1,224.00 2,652.00 31,824.00 pt087 A 12.66 1,012.80 1,012.80 2,194.40 26,332.80 B 13.30 1,064.00 1,064.00 2,305.33 27,664.00 C 13.96 1,116.80 1,116.80 2,419.73 29,036.80 D 14.66 1,172.80 1,172.80 2,541.07 30,492.80 E 15.39 1,231.20 1,231.20 2,667.60 32,011.20 pt088 A 12.79 1,023.20 1,023.20 2,216.93 26,603.20 B 13.43 1,074.40 1,074.40 2,327.87 27,934.40 C 14.10 1,128.00 1,128.00 2,444.00 29,328.00 D 14.82 1,185.60 1,185.60 2,568.80 30,825.60 E 15.55 1,244.00 1,244.00 2,695.33 32,344.00 pt089 A 12.93 1,034.40 1,034.40 2,241.20 26,894.40 B 13.58 1,086.40 1,086.40 2,353.87 28,246.40 C 14.26 1,140.80 1,140.80 2,471.73 29,660.80 D 14.97 1,197.60 1,197.60 2,594.80 31,137.60 E 15.72 1,257.60 1,257.60 2,724.80 32,697.60 pt090 A 13.02 1,041.60 1,041.60 2,256.80 27,081.60 B 13.68 1,094.40 1,094.40 2,371.20 28,454.40 C 14.36 1,148.80 1,148.80 2,489.07 29,868.80 D 15.08 1,206.40 1,206.40 2,613.87 31,366.40 E 15.83 1,266.40 1,266.40 2,743.87 32,926.40 Page 13 of 26 383 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt091 A 13.15 1,052.00 1,052.00 2,279.33 27,352.00 B 13.81 1,104.80 1,104.80 2,393.73 28,724.80 C 14.50 1,160.00 1,160.00 2,513.33 30,160.00 D 15.23 1,218.40 1,218.40 2,639.87 31,678.40 E 16.00 1,280.00 1,280.00 2,773.33 33,280.00 pt092 A 13.67 1,093.60 1,093.60 2,369.47 28,433.60 B 14.35 1,148.00 1,148.00 2,487.33 29,848.00 C 15.07 1,205.60 1,205.60 2,612.13 31,345.60 D 15.82 1,265.60 1,265.60 2,742.13 32,905.60 E 16.61 1,328.80 1,328.80 2,879.07 34,548.80 pt093 A 13.80 1,104.00 1,104.00 2,392.00 28,704.00 B 14.49 1,159.20 1,159.20 2,511.60 30,139.20 C 15.22 1,217.60 1,217.60 2,638.13 31,657.60 D 15.97 1,277.60 1,277.60 2,768.13 33,217.60 E 16.78 1,342.40 1,342.40 2,908.53 34,902.40 pt094 A 13.93 1,114.40 1,114.40 2,414.53 28,974.40 B 14.63 1,170.40 1,170.40 2,535.87 30,430.40 C 15.36 1,228.80 1,228.80 2,662.40 31,948.80 D 16.12 1,289.60 1,289.60 2,794.13 33,529.60 E 16.93 1,354.40 1,354.40 2,934.53 35,214.40 pt095 A 14.04 1,123.20 1,123.20 2,433.60 29,203.20 B 14.74 1,179.20 1,179.20 2,554.93 30,659.20 C 15.47 1,237.60 1,237.60 2,681.47 32,177.60 D 16.26 1,300.80 1,300.80 2,818.40 33,820.80 E 17.06 1,364.80 1,364.80 2,957.07 35,484.80 pt096 A 14.16 1,132.80 1,132.80 2,454.40 29,452.80 B 14.86 1,188.80 1,188.80 2,575.73 30,908.80 C 15.60 1,248.00 1,248.00 2,704.00 32,448.00 D 16.38 1,310.40 1,310.40 2,839.20 34,070.40 E 17.21 1,376.80 1,376.80 2,983.07 35,796.80 pt097 A 14.25 1,140.00 1,140.00 2,470.00 29,640.00 B 14.96 1,196.80 1,196.80 2,593.07 31,116.80 C 15.71 1,256.80 1,256.80 2,723.07 32,676.80 D 16.50 1,320.00 1,320.00 2,860.00 34,320.00 E 17.32 1,385.60 1,385.60 3,002.13 36,025.60 Page 14 of 26 384 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt098 A 14.42 1,153.60 1,153.60 2,499.47 29,993.60 B 15.14 1,211.20 1,211.20 2,624.27 31,491.20 C 15.89 1,271.20 1,271.20 2,754.27 33,051.20 D 16.69 1,335.20 1,335.20 2,892.93 34,715.20 E 17.52 1,401.60 1,401.60 3,036.80 36,441.60 pt099 A 14.54 1,163.20 1,163.20 2,520.27 30,243.20 B 15.26 1,220.80 1,220.80 2,645.07 31,740.80 C 16.03 1,282.40 1,282.40 2,778.53 33,342.40 D 16.83 1,346.40 1,346.40 2,917.20 35,006.40 E 17.68 1,414.40 1,414.40 3,064.53 36,774.40 pt100 A 14.66 1,172.80 1,172.80 2,541.07 30,492.80 B 15.39 1,231.20 1,231.20 2,667.60 32,011.20 C 16.15 1,292.00 1,292.00 2,799.33 33,592.00 D 16.97 1,357.60 1,357.60 2,941.47 35,297.60 E 17.81 1,424.80 1,424.80 3,087.07 37,044.80 pt101 A 14.77 1,181.60 1,181.60 2,560.13 30,721.60 B 15.52 1,241.60 1,241.60 2,690.13 32,281.60 C 16.29 1,303.20 1,303.20 2,823.60 33,883.20 D 17.10 1,368.00 1,368.00 2,964.00 35,568.00 E 17.96 1,436.80 1,436.80 3,113.07 37,356.80 pt102 A 14.90 1,192.00 1,192.00 2,582.67 30,992.00 B 15.65 1,252.00 1,252.00 2,712.67 32,552.00 C 16.43 1,314.40 1,314.40 2,847.87 34,174.40 D 17.25 1,380.00 1,380.00 2,990.00 35,880.00 E 18.12 1,449.60 1,449.60 3,140.80 37,689.60 pt103 A 15.01 1,200.80 1,200.80 2,601.73 31,220.80 B 15.77 1,261.60 1,261.60 2,733.47 32,801.60 C 16.56 1,324.80 1,324.80 2,870.40 34,444.80 D 17.39 1,391.20 1,391.20 3,014.27 36,171.20 E 18.25 1,460.00 1,460.00 3,163.33 37,960.00 pt104 A 15.14 1,211.20 1,211.20 2,624.27 31,491.20 B 15.90 1,272.00 1,272.00 2,756.00 33,072.00 C 16.70 1,336.00 1,336.00 2,894.67 34,736.00 D 17.53 1,402.40 1,402.40 3,038.53 36,462.40 E 18.41 1,472.80 1,472.80 3,191.07 38,292.80 Page 15 of 26 385 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt105 A 15.27 1,221.60 1,221.60 2,646.80 31,761.60 B 16.05 1,284.00 1,284.00 2,782.00 33,384.00 C 16.84 1,347.20 1,347.20 2,918.93 35,027.20 D 17.69 1,415.20 1,415.20 3,066.27 36,795.20 E 18.58 1,486.40 1,486.40 3,220.53 38,646.40 pt106 A 15.38 1,230.40 1,230.40 2,665.87 31,990.40 B 16.14 1,291.20 1,291.20 2,797.60 33,571.20 C 16.96 1,356.80 1,356.80 2,939.73 35,276.80 D 17.80 1,424.00 1,424.00 3,085.33 37,024.00 E 18.69 1,495.20 1,495.20 3,239.60 38,875.20 pt107 A 15.53 1,242.40 1,242.40 2,691.87 32,302.40 B 16.31 1,304.80 1,304.80 2,827.07 33,924.80 C 17.12 1,369.60 1,369.60 2,967.47 35,609.60 D 17.98 1,438.40 1,438.40 3,116.53 37,398.40 E 18.88 1,510.40 1,510.40 3,272.53 39,270.40 pt108 A 15.66 1,252.80 1,252.80 2,714.40 32,572.80 B 16.45 1,316.00 1,316.00 2,851.33 34,216.00 C 17.27 1,381.60 1,381.60 2,993.47 35,921.60 D 18.14 1,451.20 1,451.20 3,144.27 37,731.20 E 19.05 1,524.00 1,524.00 3,302.00 39,624.00 pt109 A 15.83 1,266.40 1,266.40 2,743.87 32,926.40 B 16.62 1,329.60 1,329.60 2,880.80 34,569.60 C 17.45 1,396.00 1,396.00 3,024.67 36,296.00 D 18.33 1,466.40 1,466.40 3,177.20 38,126.40 E 19.25 1,540.00 1,540.00 3,336.67 40,040.00 pt110 A 15.96 1,276.80 1,276.80 2,766.40 33,196.80 B 16.77 1,341.60 1,341.60 2,906.80 34,881.60 C 17.60 1,408.00 1,408.00 3,050.67 36,608.00 D 18.48 1,478.40 1,478.40 3,203.20 38,438.40 E 19.41 1,552.80 1,552.80 3,364.40 40,372.80 pt111 A 16.10 1,288.00 1,288.00 2,790.67 33,488.00 B 16.92 1,353.60 1,353.60 2,932.80 35,193.60 C 17.75 1,420.00 1,420.00 3,076.67 36,920.00 D 18.64 1,491.20 1,491.20 3,230.93 38,771.20 E 19.58 1,566.40 1,566.40 3,393.87 40,726.40 Page 16 of 26 386 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt112 A 16.26 1,300.80 1,300.80 2,818.40 33,820.80 B 17.07 1,365.60 1,365.60 2,958.80 35,505.60 C 17.92 1,433.60 1,433.60 3,106.13 37,273.60 D 18.82 1,505.60 1,505.60 3,262.13 39,145.60 E 19.76 1,580.80 1,580.80 3,425.07 41,100.80 pt113 A 16.38 1,310.40 1,310.40 2,839.20 34,070.40 B 17.20 1,376.00 1,376.00 2,981.33 35,776.00 C 18.05 1,444.00 1,444.00 3,128.67 37,544.00 D 18.96 1,516.80 1,516.80 3,286.40 39,436.80 E 19.90 1,592.00 1,592.00 3,449.33 41,392.00 pt114 A 16.56 1,324.80 1,324.80 2,870.40 34,444.80 B 17.40 1,392.00 1,392.00 3,016.00 36,192.00 C 18.26 1,460.80 1,460.80 3,165.07 37,980.80 D 19.17 1,533.60 1,533.60 3,322.80 39,873.60 E 20.13 1,610.40 1,610.40 3,489.20 41,870.40 pt115 A 16.69 1,335.20 1,335.20 2,892.93 34,715.20 B 17.51 1,400.80 1,400.80 3,035.07 36,420.80 C 18.39 1,471.20 1,471.20 3,187.60 38,251.20 D 19.31 1,544.80 1,544.80 3,347.07 40,164.80 E 20.28 1,622.40 1,622.40 3,515.20 42,182.40 pt116 A 16.83 1,346.40 1,346.40 2,917.20 35,006.40 B 17.67 1,413.60 1,413.60 3,062.80 36,753.60 C 18.56 1,484.80 1,484.80 3,217.07 38,604.80 D 19.49 1,559.20 1,559.20 3,378.27 40,539.20 E 20.46 1,636.80 1,636.80 3,546.40 42,556.80 pt117 A 16.95 1,356.00 1,356.00 2,938.00 35,256.00 B 17.79 1,423.20 1,423.20 3,083.60 37,003.20 C 18.68 1,494.40 1,494.40 3,237.87 38,854.40 D 19.61 1,568.80 1,568.80 3,399.07 40,788.80 E 20.59 1,647.20 1,647.20 3,568.93 42,827.20 pt118 A 17.13 1,370.40 1,370.40 2,969.20 35,630.40 B 17.99 1,439.20 1,439.20 3,118.27 37,419.20 C 18.89 1,511.20 1,511.20 3,274.27 39,291.20 D 19.83 1,586.40 1,586.40 3,437.20 41,246.40 E 20.82 1,665.60 1,665.60 3,608.80 43,305.60 Page 17 of 26 387 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt119 A 17.26 1,380.80 1,380.80 2,991.73 35,900.80 B 18.12 1,449.60 1,449.60 3,140.80 37,689.60 C 19.03 1,522.40 1,522.40 3,298.53 39,582.40 D 19.98 1,598.40 1,598.40 3,463.20 41,558.40 E 20.97 1,677.60 1,677.60 3,634.80 43,617.60 pt120 A 17.39 1,391.20 1,391.20 3,014.27 36,171.20 B 18.25 1,460.00 1,460.00 3,163.33 37,960.00 C 19.16 1,532.80 1,532.80 3,321.07 39,852.80 D 20.12 1,609.60 1,609.60 3,487.47 41,849.60 E 21.13 1,690.40 1,690.40 3,662.53 43,950.40 pt121 A 17.53 1,402.40 1,402.40 3,038.53 36,462.40 B 18.41 1,472.80 1,472.80 3,191.07 38,292.80 C 19.33 1,546.40 1,546.40 3,350.53 40,206.40 D 20.29 1,623.20 1,623.20 3,516.93 42,203.20 E 21.31 1,704.80 1,704.80 3,693.73 44,324.80 pt122 A 17.74 1,419.20 1,419.20 3,074.93 36,899.20 B 18.63 1,490.40 1,490.40 3,229.20 38,750.40 C 19.56 1,564.80 1,564.80 3,390.40 40,684.80 D 20.54 1,643.20 1,643.20 3,560.27 42,723.20 E 21.56 1,724.80 1,724.80 3,737.07 44,844.80 pt123 A 17.86 1,428.80 1,428.80 3,095.73 37,148.80 B 18.75 1,500.00 1,500.00 3,250.00 39,000.00 C 19.68 1,574.40 1,574.40 3,411.20 40,934.40 D 20.67 1,653.60 1,653.60 3,582.80 42,993.60 E 21.70 1,736.00 1,736.00 3,761.33 45,136.00 pt124 A 18.04 1,443.20 1,443.20 3,126.93 37,523.20 B 18.94 1,515.20 1,515.20 3,282.93 39,395.20 C 19.89 1,591.20 1,591.20 3,447.60 41,371.20 D 20.89 1,671.20 1,671.20 3,620.93 43,451.20 E 21.93 1,754.40 1,754.40 3,801.20 45,614.40 pt125 A 18.24 1,459.20 1,459.20 3,161.60 37,939.20 B 19.16 1,532.80 1,532.80 3,321.07 39,852.80 C 20.11 1,608.80 1,608.80 3,485.73 41,828.80 D 21.13 1,690.40 1,690.40 3,662.53 43,950.40 E 22.18 1,774.40 1,774.40 3,844.53 46,134.40 Page 18 of 26 388 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt126 A 18.37 1,469.60 1,469.60 3,184.13 38,209.60 B 19.29 1,543.20 1,543.20 3,343.60 40,123.20 C 20.25 1,620.00 1,620.00 3,510.00 42,120.00 D 21.26 1,700.80 1,700.80 3,685.07 44,220.80 E 22.33 1,786.40 1,786.40 3,870.53 46,446.40 pt127 A 18.53 1,482.40 1,482.40 3,211.87 38,542.40 B 19.45 1,556.00 1,556.00 3,371.33 40,456.00 C 20.43 1,634.40 1,634.40 3,541.20 42,494.40 D 21.45 1,716.00 1,716.00 3,718.00 44,616.00 E 22.53 1,802.40 1,802.40 3,905.20 46,862.40 pt128 A 18.67 1,493.60 1,493.60 3,236.13 38,833.60 B 19.60 1,568.00 1,568.00 3,397.33 40,768.00 C 20.58 1,646.40 1,646.40 3,567.20 42,806.40 D 21.62 1,729.60 1,729.60 3,747.47 44,969.60 E 22.69 1,815.20 1,815.20 3,932.93 47,195.20 pt129 A 18.88 1,510.40 1,510.40 3,272.53 39,270.40 B 19.83 1,586.40 1,586.40 3,437.20 41,246.40 C 20.82 1,665.60 1,665.60 3,608.80 43,305.60 D 21.86 1,748.80 1,748.80 3,789.07 45,468.80 E 22.95 1,836.00 1,836.00 3,978.00 47,736.00 pt130 A 19.05 1,524.00 1,524.00 3,302.00 39,624.00 B 20.00 1,600.00 1,600.00 3,466.67 41,600.00 C 21.00 1,680.00 1,680.00 3,640.00 43,680.00 D 22.05 1,764.00 1,764.00 3,822.00 45,864.00 E 23.15 1,852.00 1,852.00 4,012.67 48,152.00 pt131 A 19.17 1,533.60 1,533.60 3,322.80 39,873.60 B 20.13 1,610.40 1,610.40 3,489.20 41,870.40 C 21.14 1,691.20 1,691.20 3,664.27 43,971.20 D 22.19 1,775.20 1,775.20 3,846.27 46,155.20 E 23.30 1,864.00 1,864.00 4,038.67 48,464.00 pt132 A 19.33 1,546.40 1,546.40 3,350.53 40,206.40 B 20.30 1,624.00 1,624.00 3,518.67 42,224.00 C 21.31 1,704.80 1,704.80 3,693.73 44,324.80 D 22.38 1,790.40 1,790.40 3,879.20 46,550.40 E 23.50 1,880.00 1,880.00 4,073.33 48,880.00 Page 19 of 26 389 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt133 A 19.54 1,563.20 1,563.20 3,386.93 40,643.20 B 20.51 1,640.80 1,640.80 3,555.07 42,660.80 C 21.53 1,722.40 1,722.40 3,731.87 44,782.40 D 22.61 1,808.80 1,808.80 3,919.07 47,028.80 E 23.75 1,900.00 1,900.00 4,116.67 49,400.00 pt134 A 19.68 1,574.40 1,574.40 3,411.20 40,934.40 B 20.67 1,653.60 1,653.60 3,582.80 42,993.60 C 21.70 1,736.00 1,736.00 3,761.33 45,136.00 D 22.79 1,823.20 1,823.20 3,950.27 47,403.20 E 23.93 1,914.40 1,914.40 4,147.87 49,774.40 pt135 A 19.88 1,590.40 1,590.40 3,445.87 41,350.40 B 20.88 1,670.40 1,670.40 3,619.20 43,430.40 C 21.92 1,753.60 1,753.60 3,799.47 45,593.60 D 23.02 1,841.60 1,841.60 3,990.13 47,881.60 E 24.17 1,933.60 1,933.60 4,189.47 50,273.60 pt136 A 20.08 1,606.40 1,606.40 3,480.53 41,766.40 B 21.08 1,686.40 1,686.40 3,653.87 43,846.40 C 22.14 1,771.20 1,771.20 3,837.60 46,051.20 D 23.25 1,860.00 1,860.00 4,030.00 48,360.00 E 24.42 1,953.60 1,953.60 4,232.80 50,793.60 pt137 A 20.25 1,620.00 1,620.00 3,510.00 42,120.00 B 21.26 1,700.80 1,700.80 3,685.07 44,220.80 C 22.32 1,785.60 1,785.60 3,868.80 46,425.60 D 23.43 1,874.40 1,874.40 4,061.20 48,734.40 E 24.61 1,968.80 1,968.80 4,265.73 51,188.80 pt138 A 20.45 1,636.00 1,636.00 3,544.67 42,536.00 B 21.47 1,717.60 1,717.60 3,721.47 44,657.60 C 22.55 1,804.00 1,804.00 3,908.67 46,904.00 D 23.66 1,892.80 1,892.80 4,101.07 49,212.80 E 24.86 1,988.80 1,988.80 4,309.07 51,708.80 pt139 A 20.63 1,650.40 1,650.40 3,575.87 42,910.40 B 21.67 1,733.60 1,733.60 3,756.13 45,073.60 C 22.75 1,820.00 1,820.00 3,943.33 47,320.00 D 23.88 1,910.40 1,910.40 4,139.20 49,670.40 E 25.08 2,006.40 2,006.40 4,347.20 52,166.40 Page 20 of 26 390 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt140 A 20.80 1,664.00 1,664.00 3,605.33 43,264.00 B 21.84 1,747.20 1,747.20 3,785.60 45,427.20 C 22.93 1,834.40 1,834.40 3,974.53 47,694.40 D 24.07 1,925.60 1,925.60 4,172.13 50,065.60 E 25.28 2,022.40 2,022.40 4,381.87 52,582.40 pt141 A 21.00 1,680.00 1,680.00 3,640.00 43,680.00 B 22.05 1,764.00 1,764.00 3,822.00 45,864.00 C 23.15 1,852.00 1,852.00 4,012.67 48,152.00 D 24.31 1,944.80 1,944.80 4,213.73 50,564.80 E 25.52 2,041.60 2,041.60 4,423.47 53,081.60 pt142 A 21.16 1,692.80 1,692.80 3,667.73 44,012.80 B 22.22 1,777.60 1,777.60 3,851.47 46,217.60 C 23.33 1,866.40 1,866.40 4,043.87 48,526.40 D 24.50 1,960.00 1,960.00 4,246.67 50,960.00 E 25.72 2,057.60 2,057.60 4,458.13 53,497.60 pt143 A 21.35 1,708.00 1,708.00 3,700.67 44,408.00 B 22.42 1,793.60 1,793.60 3,886.13 46,633.60 C 23.54 1,883.20 1,883.20 4,080.27 48,963.20 D 24.71 1,976.80 1,976.80 4,283.07 51,396.80 E 25.95 2,076.00 2,076.00 4,498.00 53,976.00 pt144 A 21.54 1,723.20 1,723.20 3,733.60 44,803.20 B 22.63 1,810.40 1,810.40 3,922.53 47,070.40 C 23.76 1,900.80 1,900.80 4,118.40 49,420.80 D 24.95 1,996.00 1,996.00 4,324.67 51,896.00 E 26.19 2,095.20 2,095.20 4,539.60 54,475.20 pt145 A 21.77 1,741.60 1,741.60 3,773.47 45,281.60 B 22.86 1,828.80 1,828.80 3,962.40 47,548.80 C 24.01 1,920.80 1,920.80 4,161.73 49,940.80 D 25.20 2,016.00 2,016.00 4,368.00 52,416.00 E 26.46 2,116.80 2,116.80 4,586.40 55,036.80 pt146 A 21.96 1,756.80 1,756.80 3,806.40 45,676.80 B 23.06 1,844.80 1,844.80 3,997.07 47,964.80 C 24.21 1,936.80 1,936.80 4,196.40 50,356.80 D 25.42 2,033.60 2,033.60 4,406.13 52,873.60 E 26.69 2,135.20 2,135.20 4,626.27 55,515.20 Page 21 of 26 391 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt147 A 22.15 1,772.00 1,772.00 3,839.33 46,072.00 B 23.26 1,860.80 1,860.80 4,031.73 48,380.80 C 24.42 1,953.60 1,953.60 4,232.80 50,793.60 D 25.64 2,051.20 2,051.20 4,444.27 53,331.20 E 26.92 2,153.60 2,153.60 4,666.13 55,993.60 pt148 A 22.35 1,788.00 1,788.00 3,874.00 46,488.00 B 23.47 1,877.60 1,877.60 4,068.13 48,817.60 C 24.64 1,971.20 1,971.20 4,270.93 51,251.20 D 25.87 2,069.60 2,069.60 4,484.13 53,809.60 E 27.16 2,172.80 2,172.80 4,707.73 56,492.80 pt149 A 22.58 1,806.40 1,806.40 3,913.87 46,966.40 B 23.71 1,896.80 1,896.80 4,109.73 49,316.80 C 24.89 1,991.20 1,991.20 4,314.27 51,771.20 D 26.13 2,090.40 2,090.40 4,529.20 54,350.40 E 27.44 2,195.20 2,195.20 4,756.27 57,075.20 pt150 A 22.78 1,822.40 1,822.40 3,948.53 47,382.40 B 23.92 1,913.60 1,913.60 4,146.13 49,753.60 C 25.11 2,008.80 2,008.80 4,352.40 52,228.80 D 26.36 2,108.80 2,108.80 4,569.07 54,828.80 E 27.68 2,214.40 2,214.40 4,797.87 57,574.40 pt151 A 22.99 1,839.20 1,839.20 3,984.93 47,819.20 B 24.13 1,930.40 1,930.40 4,182.53 50,190.40 C 25.35 2,028.00 2,028.00 4,394.00 52,728.00 D 26.61 2,128.80 2,128.80 4,612.40 55,348.80 E 27.94 2,235.20 2,235.20 4,842.93 58,115.20 pt152 A 23.18 1,854.40 1,854.40 4,017.87 48,214.40 B 24.34 1,947.20 1,947.20 4,218.93 50,627.20 C 25.57 2,045.60 2,045.60 4,432.13 53,185.60 D 26.84 2,147.20 2,147.20 4,652.27 55,827.20 E 28.19 2,255.20 2,255.20 4,886.27 58,635.20 pt153 A 23.37 1,869.60 1,869.60 4,050.80 48,609.60 B 24.54 1,963.20 1,963.20 4,253.60 51,043.20 C 25.78 2,062.40 2,062.40 4,468.53 53,622.40 D 27.06 2,164.80 2,164.80 4,690.40 56,284.80 E 28.41 2,272.80 2,272.80 4,924.40 59,092.80 Page 22 of 26 392 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt154 A 23.60 1,888.00 1,888.00 4,090.67 49,088.00 B 24.78 1,982.40 1,982.40 4,295.20 51,542.40 C 26.02 2,081.60 2,081.60 4,510.13 54,121.60 D 27.32 2,185.60 2,185.60 4,735.47 56,825.60 E 28.69 2,295.20 2,295.20 4,972.93 59,675.20 pt155 A 23.80 1,904.00 1,904.00 4,125.33 49,504.00 B 24.99 1,999.20 1,999.20 4,331.60 51,979.20 C 26.25 2,100.00 2,100.00 4,550.00 54,600.00 D 27.55 2,204.00 2,204.00 4,775.33 57,304.00 E 28.93 2,314.40 2,314.40 5,014.53 60,174.40 pt156 A 24.04 1,923.20 1,923.20 4,166.93 50,003.20 B 25.24 2,019.20 2,019.20 4,374.93 52,499.20 C 26.50 2,120.00 2,120.00 4,593.33 55,120.00 D 27.82 2,225.60 2,225.60 4,822.13 57,865.60 E 29.21 2,336.80 2,336.80 5,063.07 60,756.80 pt157 A 24.27 1,941.60 1,941.60 4,206.80 50,481.60 B 25.49 2,039.20 2,039.20 4,418.27 53,019.20 C 26.77 2,141.60 2,141.60 4,640.13 55,681.60 D 28.11 2,248.80 2,248.80 4,872.40 58,468.80 E 29.51 2,360.80 2,360.80 5,115.07 61,380.80 pt158 A 24.49 1,959.20 1,959.20 4,244.93 50,939.20 B 25.71 2,056.80 2,056.80 4,456.40 53,476.80 C 27.00 2,160.00 2,160.00 4,680.00 56,160.00 D 28.35 2,268.00 2,268.00 4,914.00 58,968.00 E 29.77 2,381.60 2,381.60 5,160.13 61,921.60 pt159 A 24.75 1,980.00 1,980.00 4,290.00 51,480.00 B 25.99 2,079.20 2,079.20 4,504.93 54,059.20 C 27.29 2,183.20 2,183.20 4,730.27 56,763.20 D 28.65 2,292.00 2,292.00 4,966.00 59,592.00 E 30.09 2,407.20 2,407.20 5,215.60 62,587.20 pt160 A 24.94 1,995.20 1,995.20 4,322.93 51,875.20 B 26.18 2,094.40 2,094.40 4,537.87 54,454.40 C 27.50 2,200.00 2,200.00 4,766.67 57,200.00 D 28.87 2,309.60 2,309.60 5,004.13 60,049.60 E 30.31 2,424.80 2,424.80 5,253.73 63,044.80 Page 23 of 26 393 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt161 A 25.16 2,013.16 2,013.16 4,361.85 52,342.16 B 26.42 2,113.81 2,113.81 4,579.92 54,959.06 C 27.74 2,219.51 2,219.51 4,808.94 57,707.26 D 29.13 2,330.48 2,330.48 5,049.37 60,592.48 E 30.59 2,447.00 2,447.00 5,301.83 63,622.00 pt162 A 25.39 2,031.28 2,031.28 4,401.11 52,813.28 B 26.66 2,132.84 2,132.84 4,621.15 55,453.84 C 27.99 2,239.48 2,239.48 4,852.21 58,226.48 D 29.39 2,351.45 2,351.45 5,094.81 61,137.70 E 30.86 2,469.03 2,469.03 5,349.57 64,194.78 pt160 A 25.62 2,049.56 2,049.56 4,440.71 53,288.56 B 26.90 2,152.03 2,152.03 4,662.73 55,952.78 C 28.25 2,259.64 2,259.64 4,895.89 58,750.64 D 29.66 2,372.62 2,372.62 5,140.68 61,688.12 E 31.14 2,491.25 2,491.25 5,397.71 64,772.50 pt163 A 25.85 2,068.00 2,068.00 4,480.67 53,768.00 B 27.14 2,171.40 2,171.40 4,704.70 56,456.40 C 28.50 2,279.97 2,279.97 4,939.94 59,279.22 D 29.92 2,393.97 2,393.97 5,186.94 62,243.22 E 31.42 2,513.67 2,513.67 5,446.29 65,355.42 pt164 A 26.08 2,086.61 2,086.61 4,520.99 54,251.86 B 27.39 2,190.95 2,190.95 4,747.06 56,964.70 C 28.76 2,300.49 2,300.49 4,984.40 59,812.74 D 30.19 2,415.52 2,415.52 5,233.63 62,803.52 E 31.70 2,536.29 2,536.29 5,495.30 65,943.54 pt165 A 26.32 2,105.39 2,105.39 4,561.68 54,740.14 B 27.63 2,210.66 2,210.66 4,789.76 57,477.16 C 29.01 2,321.20 2,321.20 5,029.27 60,351.20 D 30.47 2,437.26 2,437.26 5,280.73 63,368.76 E 31.99 2,559.12 2,559.12 5,544.76 66,537.12 pt166 A 26.55 2,124.34 2,124.34 4,602.74 55,232.84 B 27.88 2,230.56 2,230.56 4,832.88 57,994.56 C 29.28 2,342.09 2,342.09 5,074.53 60,894.34 D 30.74 2,459.19 2,459.19 5,328.25 63,938.94 E 32.28 2,582.15 2,582.15 5,594.66 67,135.90 Page 24 of 26 394 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt167 A 26.79 2,143.46 2,143.46 4,644.16 55,729.96 B 28.13 2,250.63 2,250.63 4,876.37 58,516.38 C 29.54 2,363.17 2,363.17 5,120.20 61,442.42 D 31.02 2,481.33 2,481.33 5,376.22 64,514.58 E 32.57 2,605.39 2,605.39 5,645.01 67,740.14 pt168 A 27.03 2,162.75 2,162.75 4,685.96 56,231.50 B 28.39 2,270.89 2,270.89 4,920.26 59,043.14 C 29.81 2,384.44 2,384.44 5,166.29 61,995.44 D 31.30 2,503.66 2,503.66 5,424.60 65,095.16 E 32.86 2,628.84 2,628.84 5,695.82 68,349.84 pt169 A 27.28 2,182.22 2,182.22 4,728.14 56,737.72 B 28.64 2,291.33 2,291.33 4,964.55 59,574.58 C 30.07 2,405.90 2,405.90 5,212.78 62,553.40 D 31.58 2,526.19 2,526.19 5,473.41 65,680.94 E 33.16 2,652.50 2,652.50 5,747.08 68,965.00 pt170 A 27.52 2,201.86 2,201.86 4,770.70 57,248.36 B 28.90 2,311.95 2,311.95 5,009.23 60,110.70 C 30.34 2,427.55 2,427.55 5,259.69 63,116.30 D 31.86 2,548.93 2,548.93 5,522.68 66,272.18 E 33.45 2,676.37 2,676.37 5,798.80 69,585.62 pt171 A 27.77 2,221.67 2,221.67 4,813.62 57,763.42 B 29.16 2,332.76 2,332.76 5,054.31 60,651.76 C 30.62 2,449.40 2,449.40 5,307.03 63,684.40 D 32.15 2,571.87 2,571.87 5,572.39 66,868.62 E 33.76 2,700.46 2,700.46 5,851.00 70,211.96 pt172 A 28.02 2,241.67 2,241.67 4,856.95 58,283.42 B 29.42 2,353.75 2,353.75 5,099.79 61,197.50 C 30.89 2,471.44 2,471.44 5,354.79 64,257.44 D 32.44 2,595.01 2,595.01 5,622.52 67,470.26 E 34.06 2,724.76 2,724.76 5,903.65 70,843.76 pt173 A 28.27 2,261.84 2,261.84 4,900.65 58,807.84 B 29.69 2,374.94 2,374.94 5,145.70 61,748.44 C 31.17 2,493.68 2,493.68 5,402.97 64,835.68 D 32.73 2,618.37 2,618.37 5,673.14 68,077.62 E 34.37 2,749.29 2,749.29 5,956.80 71,481.54 Page 25 of 26 395 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt174 A 28.53 2,282.20 2,282.20 4,944.77 59,337.20 B 29.95 2,396.31 2,396.31 5,192.01 62,304.06 C 31.45 2,516.13 2,516.13 5,451.62 65,419.38 D 33.02 2,641.93 2,641.93 5,724.18 68,690.18 E 34.68 2,774.03 2,774.03 6,010.40 72,124.78 pt175 A 28.78 2,302.74 2,302.74 4,989.27 59,871.24 B 30.22 2,417.88 2,417.88 5,238.74 62,864.88 C 31.73 2,538.77 2,538.77 5,500.67 66,008.02 D 33.32 2,665.71 2,665.71 5,775.71 69,308.46 E 34.99 2,799.00 2,799.00 6,064.50 72,774.00 Page 26 of 26 396 of 585 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING, EFFECTIVE JANUARY 1, 2018, THE SALARY SCHEDULE FOR THE PART-TIME AND SEASONAL EMPLOYEE GROUP, AS AMENDED, ADJUSTING UPWARD CLASSIFICATIONS WITH SALARY RANGES BELOW THE 2018 STATE OF CALIFORNIA MINIMUM WAGE, AND ADJUSTING UPWARD CLASSIFICATIONS IMPACTED BY THE SALARY COMPRESSION RESULTING FROM THE MINIMUM WAGE INCREASES WHEREAS, on April 4, 2016, California Governor Jerry Brown signed Senate Bill 3 increasing California's minimum wage each year until it reaches $15.00 an hour on January 1, 2022. Effective January 1, 2018, minimum wage will increase to $11.00 an hour; and WHEREAS, under the current City of National City compensation plan, there are seven classifications with top pay steps that are below $11.00 an hour that need to be moved to new salary ranges to comply with State law, effective January 1, 2018, which are as follows: Classification From Step To Step Cashier, Dishwasher, Kitchen Aide, and Recreation Aide pt042 pt048 Recreation Leader I pt045 pt051 Police Cadet and Student Worker pt047 pt048 WHEREAS, the following classifications will also advance salary ranges in order to maintain the appropriate pay differentials within the classification series: Classification From Step To Step Food Services Worker pt053 pt058 pt059 Recreation Leader II pt054 Recreation Specialist and Stock Clerk pt059 pt064 Recreation Leader III and Lifeguard pt064 pt070 Office Aide pt065 pt071 Library Clerk pt066 pt072 Senior Lifeguard pt075 pt080 Aquatics Manager pt086 ; pt091 NOW, THEREFORE, BE IT RESOLVED that the City Council hereby approves, effective January 1, 2018, the salary schedule for the Part -Time and Seasonal employee group, as amended and fisted in the attachment marked as Exhibit "A", adjusting upward classifications with salary ranges below the 2018 State of California minimum wage, and adjusting upward classifications impacted by the salary compression resulting from the minimum wage increases. [Signature Page to Follow] 397 of 585 Resolution No. 2017 — Page Two PASSED and ADOPTED this 191h day of December, 2017. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ron Morrison, Mayor 398 of 585 Exhibit A City of National City Human Resources Department PART-TIME and SEASONAL EMPLOYEE GROUP SALARY SCHEDULE January 1, 2018 POSITION TITLE SALARY RANGE HOURLY SALARY Aquatics Manager pt091 $13.15 — $16.00 Cashier pt048 $9.07 — $11.03 Dishwasher pt048 $9.07 — $11.03 Equipment Service Trainee pt057 $9.79 — $11.90 Food Services Worker pt058 $9.87 — $12.00 Kitchen Aide pt048 $9.07 — $11.03 Librarian pt160 $23.87 — $29.01 Library Assistant pt099 $14.54 — $17.68 Library Clerk (Grant Funded) pt072 $11.12 — $13.51 Library Technician pt124 $18.04 — $21.93 Lifeguard/Swim Instructor pt070 $10.91 — $13.25 Management Intern (Graduate) NIA $16.00 Management Intern (Undergraduate) N/A $13.00 Office Aide pt071 $11.01 — $13.38 Police Cadet pt048 $9.07 — $11.03 Police Dispatcher pt156 $24.04 — $29.21 Page 1 399 of 585 Exhibit A City of National City Human Resources Department PART-TIME and SEASONAL EMPLOYEE GROUP SALARY SCHEDULE January 1, 2018 POSITION TITLE SALARY RANGE HOURLY SALARY Police Records Clerk pt099 $14.54 — $17.68 Property & Evidence Specialist I pt127 $18.53 — $22.53 Recreation Aide pt048 $9.07 — $11.03 Recreation Leader I pt051 $9.29 — $11.28 Recreation Leader II pt059 $9.95 — $12.10 Recreation Leader III pt070 $10.91 — $13.25 Recreation Specialist pt064 $10.39 — $12.63 Seasonal Park Aide pt080 $11.93 — $14.50 Senior Library Technician pt129 $18.88 — $22.95 Senior Lifeguard pt080 $11.93 — $14.50 Stock Clerk/Storekeeper pt064 $10.39 — $12.63 Student Worker pt048 $9.07 — $11.03 Page 2 400 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt001 A 6.21 496.80 496.80 1,076.40 12,916.80 B 6.52 521.60 521.60 1,130.13 13,561.60 C 6.84 547.20 547.20 1,185.60 14,227.20 D 7.19 575.20 575.20 1,246.27 14,955.20 E 7.54 603.20 603.20 1,306.93 15,683.20 pt002 A 6.27 501.60 501.60 1,086.80 13,041.60 B 6.58 526.40 526.40 1,140.53 13,686.40 C 6.92 553.60 553.60 1,199.47 14,393.60 D 7.25 580.00 580.00 1,256.67 15,080.00 E 7.62 609.60 609.60 1,320.80 15,849.60 pt003 A 6.32 505.60 505.60 1,095.47 13,145.60 B 6.63 530.40 530.40 1,149.20 13,790.40 C 6.97 557.60 557.60 1,208.13 14,497.60 D 7.31 584.80 584.80 1,267.07 15, 204.80 E 7.68 614.40 614.40 1,331.20 15,974.40 pt004 A 6.36 508.80 508.80 1,102.40 13,228.80 B 6.68 534.40 534.40 1,157.87 13,894.40 C 7.01 560.80 560.80 1,215.07 14,580.80 D 7.37 589.60 589.60 1,277.47 15,329.60 E 7.73 618.40 618.40 1,339.87 16,078.40 pt005 A 6.38 510.40 510.40 1,105.87 13,270.40 B 6.71 536.80 536.80 1,163.07 13,956.80 C 7.04 563.20 563.20 1,220.27 14,643.20 D 7.40 592.00 592.00 1,282.67 15,392.00 E 7.76 620.80 620.80 1,345.07 16,140.80 pt006 A 6.43 514.40 514.40 1,114.53 13,374.40 B 6.76 540.80 540.80 1,171.73 14,060.80 C 7.08 566.40 566.40 1,227.20 14,726.40 D 7.45 596.00 596.00 1,291.33 15,496.00 E 7.83 626.40 626.40 1,357.20 16,286.40 pt007 A 6.48 518.40 518.40 1,123.20 13,478.40 B 6.80 544.00 544.00 1,178.67 14,144.00 C 7.15 572.00 572.00 1,239.33 14,872.00 D 7.49 599.20 599.20 1,298.27 15,579.20 E 7.88 630.40 630.40 1,365.87 16,390.40 Page 1 of 26 401 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt008 A 6.53 522.40 522.40 1,131.87 13,582.40 B 6.85 548.00 548.00 1,187.33 14,248.00 C 7.20 576.00 576.00 1,248.00 14,976.00 D 7.55 604.00 604.00 1,308.67 15,704.00 E 7.94 635.20 635.20 1,376.27 16,515.20 pt009 A 6.59 527.20 527.20 1,142.27 13,707.20 B 6.93 554.40 554.40 1,201.20 14,414.40 C 7.26 580.80 580.80 1,258.40 15,100.80 D 7.64 611.20 611.20 1,324.27 15,891.20 E 8.01 640.80 640.80 1,388.4(3 16, 660.80 pt010 A 6.66 532.80 532.80 1,154.40 13,852.80 B 6.99 559.20 559.20 1,211.60 14,539.20 C 7.33 586.40 586.40 1,270.53 15,246.40 D 7.70 616.00 616.00 1,334.67 16,016.00 E 8.09 647.20 647.20 1,402.27 16,827.20 pt011 A 6.71 536.80 536.80 1,163.07 13,956.80 B 7.03 562.40 562.40 1,218.53 14,622.40 C 7.39 591.20 591.20 1,280.93 15,371.20 D 7.75 620.00 620.00 1,343.33 16,120.00 E 8.14 651.20 651.20 1,410.93 16,931.20 pt012 A 6.77 541.60 541.60 1,173.47 14,081.60 B 7.10 568.00 568.00 1,230.67 14,768.00 C 7.46 596.80 596.80 1,293.07 15,516.80 D 7.84 627.20 627.20 1,358.93 16,307.20 E 8.23 658.40 658.40 1,426.53 17,118.40 pt013 A 6.82 545.60 545.60 1,182.13 14, i 85.60 B 7.17 573.60 573.60 1,242.80 14,913.60 C 7.52 601.60 601.60 1,303.47 15,641.60 D 7.90 632.00 632.00 1,369.33 16,432.00 E 8.30 664.00 664.00 1,438.67 17,264.00 pt014 A 6.85 548.00 548.00 1,187.33 14,248.00 B 7.20 576.00 576.00 1,248.00 14,976.00 C 7.55 604.00 604.00 1,308.67 15,704.00 D 7.94 635.20 635.2D 1.376.27 16,515.20 E 8.34 667.20 667.20 1,445.60 17,347.2D Page 2 of 26 402 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt015 A 6.90 552.00 552.00 1,196.00 14;352.00 B 7.25 580.00 580.00 1,256.67 15,080.00 C 7.62 609.60 609.60 1,320.80 15,849.60 D 7.98 638.40 638.40 1,383.20 16,598.40 E 8.39 671.20 671.20 1,454.27 17,451.20 pt016 A 7.00 560.00 560.00 1,213.33 14,560.00 B 7.36 588.80 588.80 1,275.73 15,308.80 C 7.71 616.80 616.80 1,336.40 16, 036.80 D 8.11 648.80 648.80 1,405.73 16,868.80 E 8.52 681.60 681.60 1,476.80 17,721.60 pt017 A 7.05 564.00 564.00 1,222.00 14,664.00 B 7.41 592.80 592.80 1,284.40 15,412.80 C 7.77 621.60 621.60 1,346.80 16,161.60 D 8.16 652.80 652.80 1,414.40 16,972.80 E 8.58 686.40 686.40 1,487.20 17,846.40 pt018 A 7.12 569.60 569.60 1,234.13 14,809.60 B 7.47 597.60 597.60 1,294.80 15,537.60 C 7.85 628.00 628.00 1,360.67 16,328.00 D 8.24 659.20 659.20 1,428.27 17,139.20 E 8.64 691.20 691.20 1,497.60 17,971.20 pt019 A 7.19 575.20 575.20 1,246.27 14,955.20 B 7.54 603.20 603.20 1,306.93 15,683.20 C 7.92 633.60 633.60 1,372.80 16,473.60 D 8.32 665.60 665.60 1,442.13 17,305.60 E 8.73 698.40 698.40 1,513.20 18,158.40 pt020 A 7.22 577.60 577.60 1,251.47 15,017.60 B 7.59 607.20 607.20 1,315.60 15,787.20 C 7.96 636.80 636.80 1,379.73 16,556.80 D 8.36 668.80 668.80 1,449,07 17,388.80 E 8.78 702.40 702.40 1,521.87 18,262.40 pt021 A 7.28 582.40 582.40 1,261.87 15,142.40 B 7.65 612.00 612.00 1, 326.00 15,912.00 C 8.03 642.40 642.40 1,391.87 16,702.40 D 8.43 674.40 674.40 1,461.20 17,534.40 E 8.85 708.00 708.00 1,534.00 18,408.00 Page 3 of 26 403 of 585 1112812017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt022 A 7.32 585.60 585.60 1,268.80 15,225.60 B 7.69 615.20 615.20 1,332.93 15,995.20 C 8.08 646.40 646.40 1,400.53 16,806.40 D 8.48 678.40 678.40 1,469.87 17,638.40 E 8.91 712.80 712.80 1,544.40 18, 532.80 pt023 A 7.40 592.00 592.00 1,282.67 15,392.00 B 7.75 620.00 620.00 1,343.33 16,120.00 C 8.15 652.00 652.00 1,412.67 16,952.0D D 8.56 684.80 684.80 1,483.73 17,804.80 E 8.99 719.20 719.20 1,558.27 18,699.20 pt024 A 7.45 596.00 596.00 1,291.33 15,496.00 B 7.83 626.40 626.40 1,357.20 16,286.40 C 8.21 656.80 656.80 1,423.07 17,076.80 D 8.62 689.60 689.60 1,494.13 17,929.60 E 9.06 724.80 724.80 1,570.40 18,844.80 pt025 A 7.51 600.80 600.80 1,301.73 15,620.80 B 7.89 631.20 631.20 1,367.60 16,411.20 C 8.29 663.20 663.20 1,436.93 17,243.20 D 8.70 696.00 696.00 1,508.00 18,096.00 E 9.14 731.20 731,20 1,584.27 19,011.20 pt026 A 7.59 607.20 607.20 1,315.60 15,787.20 B 7.96 636.80 636.80 1,379.73 16,556.80 C 8.36 668.80 668.80 1,449.07 17,388.80 D 8.78 702.40 702.40 1,521.87 18, 262.40 E 9.23 738.40 738.40 1,599.87 19,198.40 0.00 pt027 A 7.63 610.40 610.40 1,322.53 15,870.40 8 8.01 640.80 640.80 1,388.40 16,660.80 C 8.41 672.80 672.80 1,457.73 17,492.80 D 8.83 706.40 706.40 1,530.53 18,366.40 E 9.27 741.60 741.60 1,606.80 19,281.60 Page 4of26 404 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt028 A 7.69 615.20 615.20 1,332.93 15,995.20 B 8.08 646.40 646.40 1,400.53 16,806.40 C 8.48 678.40 678.40 1,469.87 17,638.40 D 8.91 712.80 712.80 1,544.40 18,532.80 E 9.35 748.00 748.00 1,620.67 19,448.00 pt029 A 7.84 627.20 627.20 1,358.93 16,307.20 B 8.13 650.40 650.40 1,409.20 16,910.40 C 8.54 683.20 683.20 1,480.27 17,763.20 D 8.96 716.80 716.80 1,553.07 18,636.80 E 9.41 752.80 752.80 1,631.07 19,572.80 pt030 A 7.79 623.20 623.20 1,350.27 16,203.20 B 8.21 656.80 656.80 1,423.07 17,076.80 C 8.59 687.20 687.20 1,488.93 17,867.20 D 9.02 721.60 721.60 1,563.47 18,761.60 E 9.47 757.60 757.60 1,641.47 19,697.60 pt031 A 7.86 628.80 628.80 1,362.40 16,348.80 B 8.25 660.00 660.00 1,430.00 17,160.00 C 8.67 693.60 693.60 1,502.80 18,033.60 D 9.09 727.20 727.20 1,575.60 18,907.20 E 9.56 764.80 764.80 1,657.07 19,884.80 pt032 A 7.94 635.20 635.20 1,376.27 16,515.20 B 8.34 667.20 667.20 1,445.60 17,347.20 C 8.76 700.80 700.80 1,518.40 18,220.80 D 9.19 735.20 735.20 1,592.93 19,115.20 E 9.65 772.00 772.00 1,672.67 20,072.00 pt033 A 7.98 638.40 638.40 1,383.20 16,598.40 B 8.38 670.40 670.40 1,452.53 17,430.40 C 8.81 704.80 704.80 1,527.07 18,324.80 D 9.25 740.00 740.00 1,603.33 19,240.00 E 9.71 776.80 776.80 1,683.07 20,196.80 pt034 A 8.06 644.80 644.80 1,397.07 16,764.80 B 8.46 676.80 676.80 1,466.40 17,596.80 C 8.89 711.20 711.20 1,540.93 18,491.20 D 9.33 746.40 746.40 1,617.20 19,406.40 E 9.8D 784.00 784.00 1,698.67 20,384.00 Page 5 of 26 405 of 585 11 /2812017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt035 A 8.13 650.40 650.40 1,409.20 16,910.40 B 8.54 683.20 683.20 1,480.27 17,763.20 C 8.96 716.80 716.80 1,553.07 18,636.80 D 9.41 752.80 752.80 1,631.07 19,572.80 E 9.88 790.40 790.40 1,712.53 20,550.40 pt036 A 8.18 654.40 654.40 1,417.87 17,014.40 B 8.60 688.00 688.00 1,490.67 17,888.00 C 9.03 722.40 722.40 1,565.20 18,782.40- D 9.48 758.40 758.40 1,643.20 19,718.40 E 9.95 796.00 796.00 1,724.67 20,696.00 pt037 A 8.29 663.20 663.20 1,436.93 17,243.20 B 8.70 696.00 696.00 1,508.00 18,096.00 C 9.14 731.20 731.20 1,584.27 19,011.20 D 9.59 767.20 767.20 1,662.27 19,947.20 E 10.07 805.60 805.60 1,745.47 20,945.60 pt038 A 8.33 666.40 666.40 1,443.87 17,326.40 B 8.74 699.20 699.20 1,514.93 18,179.20 C 9.18 734.40 734.40 1,591.20 19,094.40 D 9.64 771.20 771.20 1,670.93 20,051.20 E 10.12 809.60 809.60 1,754.13 21,049.60 pt039 A 8.41 672.80 672.80 1,457.73 17,492.80 B 8.84 707.20 707.20 1,532.27 18,387.20 C 9.28 742.40 742.40 1,608.53 19,302.40 D 9.74 779.20 779.20 1,688.27 20,259.20 E 10.24 819.20 819.20 1,774.93 21,299.20 pt040 A 8.48 678.40 678.40 1,469.87 17,638.40 B 8.91 712.80 712.80 1,544.40 18,532.80 C 9.35 748.00 748.00 1,620.67 19,448.00 D 9.82 785.60 785.60 1,702.13 20,425.60 E 10.31 824.80 824.80 1,787.07 21,444.80 pt041 A 8.55 684.00 684.00 1,482.00 17,784.00 B 8.97 717.60 717.60 1,554.80 18,657.60 C 9.42 753.60 753.60 1,632.80 19,593.60 D 9.89 791.20 791.20 1,714.27 20,571.20 E 10.39 831.20 831.20 1,800.93 21,611.20 Page 6 of 26 406 of 585 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY pt042 A 8.64 691.20 691.20 1,497.60 B 9.07 725.60 725.60 1,572.13 C 9.52 761.60 761.60 1,650.13 D 10.01 800.80 800.80 1,735.07 E 10.50 840.00 840.00 1,820.00 11/28/2017 ANNUAL 17, 971.20 18, 865.60 19,801.60 20,820.80 21,840.00 pt043 A 8.72 697.60 697.60 1,511.47 18,137.60 B 9.16 732.80 732.80 1,587.73 19,052.80 C 9.61 768.80 768.80 1,665.73 19,988.80 D 10.09 807.20 807.20 1,748.93 20,987.20 E 10.59 847.20 847.20 1,835.60 22,027.20 pt044 A 8.77 701.60 701.60 1,520.13 18,241.60 B 9.20 736.00 736.00 1,594.67 19,136.00 C 9.66 772.80 772.80 1,674.40 20,092.80 D 10.15 812.00 812.00 1,759.33 21,112.00 E 10,66 852.80 852.80 1,847.73 22,172.80 pt045 A 8.86 708.80 708.80 1,535.73 18,428.80 B 9.30 744.00 744.00 1,612.00 19,344.00 C 9.78 782.40 782.40 1,695.20 20,342.40 D 10.26 820.80 820.80 1,778.40 21,340.80 E 10.77 861.60 861.60 1,866.80 22,401.60 pt046 A 8.93 714.40 714.40 1,547.87 18,574.40 B 9.37 749.60 749.60 1,624.13 19,489.60 C 9.84 787.20 787.20 1,705.60 20,467.20 D 10.33 826.40 826.40 1,790.53 21, 486.40 E 10.85 868.00 868.00 1,880.67 22,568.00 pt047 A 8.97 717.60 717.60 1,554.80 18,657.60 B 9.42 753.60 753.60 1,632.80 19,593.60 C 9.88 790.40 790.40 1,712.53 20,550.40 D 10.39 831.20 831.20 1,800.93 21,611.20 E 10.91 872.80 872.80 1,891.07 22, 692.80 pt048 A 9.07 725.60 725.60 1,572.13 18,865.60 B 9.53 762.40 762.40 1,651.87 19,822.40 C 10.01 800.80 800.80 1,735.07 20,820.80 D 10.51 840.80 840.80 1,821.73 21,860.80 E 11.03 882.40 882.40 1,911.87 22,942.40 Page 7 of 26 407 of 585 11 /28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt049 A 9.14 731.20 731.20 1,584.27 19,011.20 B 9.60 768.00 768.00 1,664.00 19,968.00 C 10.07 805.60 805.60 1,745.47 20,945.60 D 10.57 845.60 845.60 1,832.13 21,985.60 E 11.12 889.60 889.60 1,927.47 23,129.60 pt050 A 9.22 737.60 737.60 1,598.13 19,177.60 B 9.67 773.60 773.60 1,676.13 20,113.60 C 10.16 812.80 812.80 1,761.07 21,132.80 D 10.68 854.40 854.40 1,851.20 22,214.40 E 11.20 896.00 896.00 1,941.33 23,296.00 pt051 A 9.29 743.20 743.20 1,610.27 19,323.20 B 9.75 780.00 780.00 1,690.00 20,280.00 C 10.25 820.00 820.00 1,776.67 21,320.00 D 10.75 860.00 860.00 1,863.33 22,360.00 E 11.28 902.40 902.40 1,955.20 23,462.40 pt052 A 9.35 748.00 748.00 1,620.67 19,448.00 B 9.82 785.60 785.60 1,702.13 20,425.60 C 10.31 824.80 824.80 1,787.07 21,444.80 D 10.82 865.60 865.60 1,875.47 22,505.60 E 11.37 909.60 909.60 1,970.80 23,649.60 pt053 A 9.43 754.40 754.40 1,634.53 19,614.40 B 9.90 792.00 792.00 1,716.00 20,592.00 C 10.41 832.80 832.80 1,804.40 21,652.80 D 10.93 874.40 874.40 1,894.53 22,734.40 E 11.47 917.60 917.60 1,988.13 23,857.60 pt054 A 9.51 760.80 760.80 1,648.40 19,780.80 B 9.99 799.20 799.20 1,731.60 20,779.20 C 10.49 839.20 839.20 1,818.27 21,819.20 D 11.01 880.80 880.80 1,908.40 22,900.80 E 11.57 925.60 925.60 2,005.47 24,065.60 pt055 A 9.61 768.80 768.80 1,665.73 19,988.80 B 10.09 807.20 807.20 1,748.93 20,987.20 C 10.59 847.20 847.20 1,835.60 22,027.20 D 11.13 890.40 890.40 1,929.20 23,150.40 E 11.68 934.40 934.40 2,024.53 24,294.40 Page 8 of 26 408 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt056 A 9.69 775.20 775.20 1,679.60 20,155.20 B 10.17 813.60 813.60 1,762.80 21,153.60 C 10.69 855.20 855.20 1,852.93 22,235.20 D 11.21 896.80 896.80 1,943.07 23,316.80 E 11.77 941.60 941.60 2,040.13 24,481.60 pt057 A 9.79 783.20 783.20 1,696.93 20,363.20 B 10.28 822.40 822.40 1,781.87 21, 382.40 C 10.79 863.20 863.20 1,870.27 22,443.20 D 11.34 907.20 907.20 1,965.60 23,587.20 E 11.90 952.00 952.00 2,062.67 24,752.00 pt058 A 9.87 789.60 789.60 1,710.80 20,529.60 B 10.36 828.80 828.80 1,795.73 21,548.80 C 10.89 871.20 871.20 1,887.60 22,651.20 D 11.43 914.40 914.40 1,981.20 23,774.40 E 12.00 960.00 960.00 2,080.00 24,960.00 pt059 A 9.95 796.00 796.00 1,724.67 20,696.00 B 10.46 836.80 836.80 1,813.07 21,756.80 C 10.97 877.60 877.60 1,901.47 22,817.60 D 11.52 921.60 921.60 1,996.80 23,961.60 E 12.10 968.00 968.00 2,097.33 25,168.00 pt060 A 10.04 803.20 803.20 1,740.27 20,883.20 B 10.53 842.40 842.40 1,825.20 21, 902.40 C 11.05 884.00 884.00 1,915.33 22, 984.00 D 11.62 929.60 929.60 2,014.13 24,169.60 E 12.20 976.00 976.00 2,114.67 25,376.00 pt061 A 10.10 808.00 808.00 1,750.67 21,008.00 B 10.60 848.00 848.00 1,837.33 22,048.00 C 11.15 892.00 892.00 1,932.67 23,192.00 D 11.69 935.20 935.20 2,026.27 24,315.20 E 12.29 983.20 983.20 2,130.27 25,563.20 pt062 A 10.23 818.40 818.40 1,773.20 21,278.40 B 10.73 858.40 858.40 1,859.87 22,318.40 C 11.26 900.80 900.80 1,951.73 23,420.80 D 11.83 946.40 946.40 2,050.53 24,606.40 E 12.42 993.60 993.60 2,152.80 25,833.60 Page 9 of 26 409 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt063 A 10.31 824.80 824.80 1,787.07 21,444.80 B 10.82 865.60 865.60 1,875.47 22,505.60 C 11.37 909.60 909.60 1,970.80 23,649.60 D 11.93 954.40 954.40 2,067.87 24,814.40 E 12.53 1,002.40 1,002.40 2,171.87 26,062.40 pt064 A 10.39 831.20 831.20 1,800.93 21,611.20 B 10.91 872.80 872.80 1,891.07 22; 692.80 C 11.45 916.00 916.00 1,984.67 23,816.00 D 12.03 962.40 962.40 2,085.20 25,022.40 E 12.63 1,010.40 1,010.40 2,189.20 26,270.40 pt065 A 10.48 838.40 838.40 1,816.53 21,798.40 6 11.00 880.00 880.00 1,906.67 22;880.00 C 11.56 924.80 924.80 2,003.73 24,044.80 D 12.13 970.40 970.40 2,102.53 25,230.40 E 12.74 1,019.20 1,019.20 2,208.27 26,499.20 pt066 A 10.56 844.80 844.80 1,830.40 21,964.80 B 11.10 888.00 888.00 1,924.00 23,088.00 C 11.65 932.00 932.00 2,019.33 24,232.00 D 12.23 978.40 978.40 2,119.87 25,438.40 E 12.85 1,028.00 1,028.00 2,227.33 26,728.00 pt067 A 10.65 852.00 852.00 1,846.00 22,152.00 B 11.18 894.40 894.40 1,937.87 23,254.40 C 11.74 939.20 939.20 2,034.93 24,419.20 D 12.32 985.60 985.60 2,135.47 25,625.60 E 12.95 1,036.00 1,036.00 2,244.67 26,936.00 pt068 A 10.74 859.20 859.20 1,861.60 22,339.20 B 11.27 901.60 901.60 1,953.47 23,441.60 C 11.84 947.20 947.20 2,052.27 24,627.20 D 12.43 994.40 994.40 2,154.53 25,854.40 E 13.06 1,044.80 1,044.80 2,263.73 27,164.80 pt069 A 10.82 865.60 865.60 1,875.47 22,505.60 B 11.38 910.40 910.40 1,972.53 23;670.40 C 11.94 955.20 955.20 2,069.60 24,835.20 D 12.54 1,003.20 1,003.20 2,173.60 26,083.20 E 13.16 1,052.80 1,052.80 2,281.07 27,372.80 Page 10 of 26 410 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt070 A 10.91 872.80 872.80 1,891.07 22,692.80 B 11.45 916.00 916.00 1,984.67 23,816.00 C 12.03 962.40 962.40 2,085.20 25,022.40 D 12.62 1,009.60 1,009.60 2,187.47 26,249.60 E 13.25 1,060.00 1,060.00 2,296.67 27,560.00 pt071 A 11.01 880.80 880.80 1,908.40 22,900.80 B 11.57 925.60 925.60 2,005.47 24,065.60 C 12.13 970.40 970.40 2,102.53 25,230.40 D 12.75 1,020.00 1,020.00 2,210.00 26,520.00 E 13.38 1,070.40 1,070.40 2,319.20 27,830.40 pt072 A 11.12 889.60 889.60 1,927.47 23,129.60 B 11.66 932.80 932.80 2,021.07 24,252.80 C 12.25 980.00 980.00 2,123.33 25,480.00 D 12.86 1,028.80 1,028.80 2,229.07 26,748.80 E 13.51 1,080.80 1,080.80 2,341.73 28,100.80 pt073 A 11.22 897.60 897.60 1,944.80 23,337.60 B 11.79 943.20 943.20 2,043.60 24,523.20 C 12.37 989.60 989.60 2,144.13 25,729.60 D 12.99 1,039.20 1,039.20 2,251.60 27,019.20 E 13.65 1,092.00 1,092.00 2,366.00 28,392.00 pt074 A 11.33 906.40 906.40 1,963.87 23,566.40 B 11.89 951.20 951.20 2,060.93 24,731.20 C 12.49 999.20 999.20 2,164.93 25,979.20 D 13.11 1,048.80 1,048.80 2,272.40 27,268.80 E 13.76 1,100.80 1,100.80 2,385.07 28,620.80 pt075 A 11.42 913.60 913.60 1,979.47 23,753.60 B 11.99 959.20 959.20 2,078.27 24,939.20 C 12.59 1,007.20 1,007.20 2,182.27 26,187.20 D 13.22 1,057.60 1,057.60 2,291.47 27,497.60 E 13.87 1,109.60 1,109.60 2,404.13 28,849.60 pt076 A 11.53 922.40 922.40 1,998.53 23,982.40 B 12.10 968.00 968.00 2,097.33 25,168.00 C 12.70 1,016.00 1,016.00 2,201.33 26,416.00 D 13.34 1,067.20 1,067.20 2,312.27 27,747.20 E 14.01 1,120.80 1,120.80 2,428.40 29,140.80 Page 11 of 26 411 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt077 A 11.62 929.60 929.60 2,014.13 24,169.60 B 12.19 975.20 975.20 2,112.93 25,355.20 C 12.80 1,024.00 1,024.00 2,218.67 26,624.00 D 13.44 1,075.20 1,075.20 2,329.60 27,955.20 E 14.12 1;129.60 1,129.60 2,447.47 29,369.60 pt078 A 11.75 940.00 940.00 2,036.67 24,440.00 B 12.33 986.40 986.40 2,137.20 25,646.40 C 12.95 1,036.00 1,036.00 2,244.67 26,936.00 D 13.59 1,087.20 1,087.20 2,355.60 28,267.20 E 14.27 1,141.60 1,141.60 2;473.47 29,681.60 pt079 A 11.83 946.40 946.40 2,050.53 24,606.40 B 12.42 993.60 993.60 2,152.80 25,833.60 C 13.04 1,043.20 1,043.20 2,260.27 27,123.20 D 13.69 1,095.20 1,095.20 2,372.93 28,475.20 E 14.38 1,150.40 1,150.40 2,492.53 29,910.40 pt080 A 11.93 954.40 954.40 2,067.87 24,814.40 B 12.53 1,002.40 1,002.40 2,171.87 26,062.40 C 13.15 1,052.00 1,052.00 2,279.33 27,352.00 D 13.81 1,104.80 1,104.80 2,393.73 28,724.80 E 14.50 1,160.00 1,160.00 2,513.33 30,160.00 pt081 A 12.02 961.60 961.60 2,083.47 25,001.60 B 12.62 1,009.60 1,009.60 2,187.47 26,249.60 C 13.24 1,059.20 1,059.20 2,294.93 27,539.20 D 13.91 1,112.80 1,112.80 2;411.07 28,932.80 E 14.61 1,168.80 1,168.80 2,532.40 30,388.80 pt082 A 12.14 971.20 971.20 2,104.27 25,251.20 B 12.75 1,020.00 1,020.00 2,210.00 26,520.00 C 13.39 1,071.20 1,071.20 2,320.93 27,851.20 D 14.06 1,124.80 1,124.80 2,437.07 29,244.80 E 14.76 1,180.80 1,180.80 2,558.40 30,700.80 pt083 A 12.23 978.40 978.40 2,119.87 25,438.40 B 12.85 1,028.00 1,028.00 2,227.33 26,728.00 C 13.50 1,080.00 1,080.00 2,340.00 28;080.00 D 14.17 1,133.60 1,133.60 2,456.13 29,473.60 E 14.88 1,190.40 1,190.40 2,579.20 30,950.40 Page 12 of 26 412 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt084 A 12.32 985.60 985.60 2,135.47 25,625.60 B 12.93 1,034.40 1,034.40 2,241.20 26,894.4D C 13.58 1,086.40 1,086.40 2,353.87 28,246.40 D 14.26 1,140.80 1,140.80 2,471.73 29,660.80 E 14.97 1,197.60 1,197.60 2,594.80 31,137.60 pt085 A 12.43 994.40 994.40 2,154.53 25,854.40 B 13.06 1,044.80 1,044.80 2,263.73 27,164.80 C 13.70 1,096.00 1,096.00 2,374.67 28,496.00 D 14.40 1,152.00 1,152.00 2,496.00 29,952.00 E 15.11 1,208.80 1,208.80 2,619.07 31,428.80 pt086 A 12.58 1,006.40 1,006.40 2,180.53 26,166.40 B 13.21 1,056.80 1,056.80 2,289.73 27,476.80 C 13.86 1,108.80 1,108.80 2,402.40 28,828.80 D 14.56 1,164.80 1,164.80 2,523.73 30,284.80 E 15.30 1,224.00 1,224.00 2,652.00 31,824.00 pt087 A 12.66 1,012.80 1,012.80 2,194.40 26,332.80 B 13.30 1,064.00 1,064.00 2,305.33 27,664.00 C 13.96 1,116.80 1,116.80 2,419.73 29,036.80 D 14.66 1,172.80 1,172.80 2,541.07 30,492.80 E 15.39 1,231.20 1,231.20 2,667.60 32,011.20 pt088 A 12.79 1,023.20 1,023.20 2,216.93 26,603.2D B 13.43 1,074.40 1,074.40 2,327.87 27,934.40 C 14.10 1,128.00 1,128.00 2,444.00 29,328.00 D 14.82 1,185.60 1,185.60 2,568.80 30,825.60 E 15.55 1,244.00 1,244.00 2.695.33 32,344.00 pt089 A 12.93 1,034.40 1,034.40 2,241.20 26,894.40 B 13.58 1,086.40 1,086.40 2,353.87 28,246.40 C 14.26 1,140.80 1,140.80 2,471.73 29,660.80 D 14.97 1,197.60 1,197.60 2,594.80 31,137.60 E 15.72 1,257.60 1,257.60 2,724.80 32,697.60 pt090 A 13.02 1,041.60 1,041.60 2,256.80 27,081.60 B 13.68 1,094.40 1,094.40 2,371.20 28,454.40 C 14.36 1,148.80 1,148.80 2,489.07 29,868.80 D 15.08 1,206.40 1,206.40 2,613.87 31,366.40 E 15.83 1,266.40 1,266.40 2,743.87 32,926.40 Page 13 of 26 413 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt091 A 13.15 1,052.00 1,052.00 2,279.33 27,352.00 B 13.81 1,104.80 1,104.80 2;393.73 28,724.80 C 14.50 1,160.00 1,160.00 2,513.33 30,160.00 D 15.23 1,218.40 1,218.40 2,639.87 31,678.40 E 16.00 1,280.00 1,280.00 2,773.33 33,280.00 pt092 A 13.67 1,093.60 1,093.60 2,369.47 28,433.60 B 14.35 1,148.00 1,148.00 2,487.33 29,848.00 C 15.07 1,205.60 1,205.60 2;612.13 31,345.60 D 15.82 1,265.60 1,265.60 2,742.13 32,905.60 E 16.61 1,328.80 1,328.80 2,879.07 34,548.80 pt093 A 13.80 1,104.00 1,104.00 2,392.00 28,704.00 B 14.49 1,159.20 1,159.20 2,511.60 30,139.20 C 15.22 1,217.60 1,217.60 2,638.13 31,657.60 D 15.97 1,277.60 1,277.60 2,768.13 33,217.60 E 16.78 1,342.40 1,342.40 2,908.53 34,902.40 pt094 A 13.93 1,114.40 1,114.40 2,414.53 28,974.40 B 14.63 1,170.40 1,170.40 2,535.87 30,430.40 C 15.36 1,228.80 1,228.80 2,662.40 31,948.80 D 16.12 1,289.60 1,289.60 2;794.13 33,529.60 E 16.93 1,354.40 1,354.40 2,934.53 35,214.40 pt095 A 14.04 1,123.20 1,123.20 2;433.60 29,203.20 B 14.74 1,179.20 1,179.20 2,554.93 30,659.20 C 15.47 1;237.60 1,237.60 2,681.47 32,177.60 D 16.26 1,300.80 1,300.80 2,818.40 33,820.80 E 17.06 1,364.80 1,364.80 2,957.07 35,484.80 pt096 A 14.16 1,132.80 1,132.80 2,454.40 29,452.80 B 14.86 1,188.80 1,188.80 2,575.73 30,908.80 C 15.60 1,248.00 1,248.00 2,704.00 32,448.00 D 16.38 1,310.40 1;310.40 2,839.20 34.070.40 E 17.21 1,376.80 1,376.80 2,983.07 35,796.80 pt097 A 14.25 1,140.00 1,140.00 2,470.00 29,640.00 B 14.96 1,196.80 1,196.80 2,593.07 31,116.80 C 15.71 1,256.80 1,256.80 2,723.07 32,676.80 D 16.50 1,320.00 1,320.00 2,860.00 34,320.00 E 17.32 1,385.60 1,385.60 3,002.13 36,025.60 Page 14 of 26 414 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt098 A 14.42 1,153.60 1,153.60 2,499.47 29,993.60 B 15.14 1,211.20 1,211.20 2,624.27 31,491.20 C 15.89 1,271.20 1,271.20 2,754.27 33,051.20 D 16.69 1;335.20 1,335.20 2,892.93 34,715.20 E 17.52 1,401.60 1,401.60 3,036.80 36,441.60 pt099 A 14.54 1,163.20 1,163.20 2,520.27 30,243.20 B 15.26 1,220.80 1;220.80 2,645.07 31,740.80 C 16.03 1,282.40 1,282.40 2,778.53 33,342.40 D 16.83 1,346.40 1,346.40 2,917.20 35,006.40 E 17.68 1,414.40 1,414.40 3,064.53 36,774.40 pt100 A 14.66 1,172.80 1,172.80 2,541.07 30.492.80 B 15.39 1,231.20 1,231.20 2,667.60 32,011.20 C 16.15 1,292.00 1,292.00 2,799.33 33,592.00 D 16.97 1,357.60 1,357.60 2;941.47 35,297.60 E 17.81 1,424.80 1,424.80 3,087.07 37,044.80 pt101 A 14.77 1,181.60 1,181.60 2,560.13 30,721.60 B 15.52 1,241.60 1,241.60 2,690.13 32,281.60 C 16.29 1,303.20 1,303.20 2,823.60 33,883.20 D 17.10 1,368.00 1,368.00 2,964.00 35,568.00 E 17.96 1,436.80 1,436.80 3,113.07 37,356.80 pt102 A 14.90 1,192.00 1,192.00 2; 582.67 30,992.00 B 15.65 1,252.00 1,252.00 2,712.67 32,552.00 C 16.43 1,314.40 1,314.40 2,847.87 34,174.40 D 17.25 1,380.00 1,380.00 2,990.00 35,880.00 E 18.12 1,449.60 1,449.60 3,140.80 37,689.60 pt103 A 15.01 1,200.80 1,200.80 2,601.73 31,220.80 B 15.77 1,261.60 1,261.60 2,733.47 32,801.60 C 16.56 1,324.80 1,324.80 2,870.40 34,444.80 D 17.39 1,391.20 1,391.20 3,014.27 36,171.20 E 18.25 1,460.00 1,460.00 3,163.33 37,960.00 pt104 A 15.14 1,211.20 1,211.20 2,624.27 31,491.20 B 15.90 1,272.00 1,272.00 2,756.00 33,072.00 C 16.70 1,336.00 1,336.00 2,894.67 34,736.00 D 17.53 1,402.40 1,402.40 3,038.53 36,462.40 E 18.41 1,472.80 1,472.80 3,191.07 38,292.80 Page 15 of 26 415 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME 8 SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt105 A 15.27 1,221.60 1,221.60 2,646.80 31,761.60 B 16.05 1,284.00 1,284.00 2,782.00 33,384.00 C 16.84 1,347.20 1,347.20 2,918.93 35,027.20 D 17.69 1,415.20 1,415.20 3,066.27 36,795.20 E 18.58 1,486.40 1,486.40 3,220.53 38,646.40 pt106 A 15.38 1,230.40 1,230.40 2,665.87 31,990.40 B 16.14 1,291.20 1,291.20 2,797.60 33,571.20 C 16.96 1,356.80 1,356.80 2,939.73 35,276.80 D 17.80 1,424.00 1,424.00 3,085.33 37,024.00 E 18.69 1,495.20 1,495.20 3,239.60 38,875.20 pt107 A 15.53 1,242.40 1,242.40 2,691.87 32,302.40 B 16.31 1,304.80 1,304.80 2,827.07 33,924.80 C 17.12 1,369.60 1,369.60 2,967.47 35,609.60 D 17.98 1,438.40 1,438.40 3,116.53 37,398.40 E 18.88 1,510.40 1,510.40 3,272.53 39,270.40 pt108 A 15.66 1,252.80 1,252.80 2,714.40 32,572.80 B 16.45 1,316.00 1,316.00 2,851.33 34,216.00 C 17.27 1,381.60 1,381.60 2,993.47 35,921.60 D 18.14 1,451.20 1,451.20 3,144.27 37,731.2D E 19.05 1,524.00 1,524.00 3,302.00 39,624.00 pt109 A 15.83 1,266.40 1,266.40 2,743.87 32,926.40 B 16.62 1,329.60 1,329.60 2,880.80 34,569.60 C 17.45 1,396.00 1,396.00 3,024.67 36,296.00 D 18.33 1,466.40 1,466.40 3,177.20 38,126.40 E 19.25 1,540.00 1,540.00 3,336.67 40,040.00 pt110 A 15.96 1,276.80 1,276.80 2,766.40 33,196.80 B 16.77 1,341.60 1,341.60 2,906.80 34,881.60 C 17.60 1,408.00 1,408.00 3,050.67 36,608.00 D 18.48 1,478.40 1,478.40 3,203.20 38,438.40 E 19.41 1,552.80 1,552.80 3,364.40 40,372.80 pt111 A 16.10 1,288.00 1,288.00 2,790.67 33,488.00 B 16.92 1,353.60 1,353.60 2,932.80 35,193.60 C 17.75 1,420.00 1,420.00 3,076.67 36,920.00 D 18.64 1,491.20 1,491.20 3,230.93 38,771.20 E 19.58 1,566.40 1,566.40 3,393.87 40,726.40 Page 16 of 26 416 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt112 A 16.26 1,300.80 1,300.80 2,818.40 33,820.80 B 17.07 1,365.60 1,365.60 2,958.80 35;505.60 C 17.92 1,433.60 1,433.60 3,106.13 37;273.60 D 18.82 1,505.60 1,505.60 3,262.13 39,145.60 E 19.76 1,580.80 1,580.80 3,425.07 41,100.80 pt113 A 16.38 1,310.40 1,310.40 2,839.20 34,070.40 B 17.20 1,376.00 1,376.00 2,981.33 35,776.00 C 18.05 1,444.00 1; 444.00 3,128.67 37, 544.00 D 18.96 1,516.80 1,516.80 3,286.40 39,436.80 E 19.90 1,592.00 1,592.00 3,449.33 41,392.00 pt114 A 16.56 1,324.80 1,324.80 2,870.40 34,444.80 B 17.40 1,392.00 1,392.00 3,016.00 36,192.00 C 18.26 1,460.80 1,460.80 3,165.07 37,980.80 D 19.17 1,533.60 1,533.60 3,322.80 39,873.60 E 20.13 1,610.40 1,610.40 3,489.20 41,870.40 pt115 A 16.69 1,335.20 1,335.20 2,892.93 34,715.20 B 17.51 1,400.80 1,400.80 3,035.07 36,420.80 C 18.39 1,471.20 1,471.20 3,187.60 38,251.20 D 19.31 1,544.80 1,544.80 3,347.07 40,164.80 E 20.28 1,622.40 1,622.40 3,515.20 42,182.40 pt116 A 16.83 1,346.40 1,346.40 2,917.20 35,006.40 B 17.67 1,413.60 1,413.60 3,062.80 36,753.60 C 18.56 1,484.80 1,484.80 3,217.07 38,604.80 D 19.49 1,559.20 1,559.20 3,378.27 40,539.20 E 20.46 1,636.80 1,636.80 3,546.40 42,556.80 pt117 A 16.95 1,356.00 1,356.00 2,938.00 35,256.00 B 17.79 1,423.20 1,423.20 3,083.60 37,003.20 C 18.68 1,494.40 1;494.40 3,237.87 38,854.40 D 19.61 1,568.80 1,568.80 3,399.07 40,788.80 E 20.59 1,647.20 1,647.20 3,568.93 42,827.20 pt118 A 17.13 1,370.40 1,370.40 2,969.20 35,630.40 B 17.99 1;439.20 1,439.20 3,118.27 37,419.20 C 18.89 1,511.20 1,511.20 3,274.27 39,291.20 D 19.83 1,586.40 1,586.40 3,437.20 41, 246.40 E 20.82 1,665.60 1,665.60 3,608.80 43,305.60 Page 17 of 26 417 of 585 11f28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt119 A 17.26 1,380.80 1,380.80 2,991.73 35,900.80 B 18.12 1,449.60 1,449.60 3,140.80 37,689.60 C 19.03 1,522.40 1,522.40 3,298.53 39,582.40 D 19.98 1,598.40 1,598.40 3,463.20 41,558.40 E 20.97 1,677.60 1,677.60 3,634.80 43,617.60 pt120 A 17.39 1,391.20 1,391.20 3;014.27 36,171.20 B 18.25 1,460.00 1,460.00 3,163.33 37,960.00 C 19.16 1,532.80 1,532.80 3,321.07 39,852.80 D 20.12 1,609.60 1,609.60 3,487.47 41,849.60 E 21.13 1,690.40 1,690.40 3,662.53 43,950.40 pt121 A 17.53 1,402.40 1,402.40 3,038.53 36,462.40 B 18.41 1,472.80 1,472.80 3,191.07 38,292.80 C 19.33 1,546.40 1,546.40 3,350.53 40,206.40 D 20.29 1,623.20 1,623.20 3,516.93 42,203.20 E 21.31 1,704.80 1,704.80 3;693.73 44,324.80 pt122 A 17.74 1,419.20 1,419.20 3,074.93 36,899.20 B 18.63 1,490.40 1,490.40 3,229.20 38,750.40 C 19.56 1,564.80 1,564.80 3,390.40 40,684.80 D 20.54 1,643.20 1,643.20 3,560.27 42,723.20 E 21.56 1,724.80 1,724.80 3,737.07 44,844.80 pt123 A 17.86 1,428.80 1,428.80 3,095.73 37,148.80 B 18.75 1,500.00 1,500.00 3,250.00 39,000.00 C 19.68 1,574.40 1,574.40 3,411.20 40,934.40 D 20.67 1,653.60 1,653.60 3,582.80 42,993.60 E 21.70 1;736.00 1,736.00 3,761.33 45,136.00 pt124 A 18.04 1,443.20 1,443.20 3,126.93 37,523.20 B 18.94 1,515.20 1,515.20 3,282.93 39,395.20 C 19.89 1,591.20 1,591.20 3,447.60 41,371.20 D 20.89 1,671.20 1,671.20 3,620.93 43,451.20 E 21.93 1,754.40 1,754.40 3,801.20 45,614.40 pt125 A 18.24 1,459.20 1,459.20 3,161.60 37,939.20 B 19.16 1,532.80 1,532.80 3,321.07 39,852.80 C 20.11 1,608.80 1,608.80 3,485.73 41,828.80 D 21.13 1,690.40 1,690.40 3,662.53 43,950.40 E 22.18 1,774.40 1,774.40 3,844.53 46,134.40 Page 18of26 418 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt126 A 18.37 1,469.60 1,469.60 3,184.13 38,209.60 B 19.29 1,543.20 1,543.20 3,343.60 40,123.20 C 20.25 1,620.00 1,620.00 3,510.00 42,120.00 D 21.26 1,700.80 1,700.80 3,685.07 44,220.80 E 22.33 1,786.40 1,786.40 3,870.53 46,446.40 pt127 A 18.53 1,482.40 1,482.40 3,211.87 38,542.40 B 19.45 1,556.00 1,556.00 3,371.33 40,456.00 C 20.43 1,634.40 1,634.40 3,541.20 42,494.40 D 21.45 1,716.00 1,716.00 3,718.00 44,616.00 E 22.53 1,802.40 1,802.40 3,905.20 46,862.40 pt128 A 18.67 1,493.60 1,493.60 3,236.13 38,833.60 B 19.60 1,568.00 1,568.00 3,397.33 40,768.00 C 20.58 1,646.4D 1,646.40 3,567.20 42,806.40 D 21.62 1,729.60 1,729.60 3,747.47 44,969.60 E 22.69 1,815.20 1,815.20 3,932.93 47,195.20 pt129 A 18.88 1,510.40 1,510.40 3,272.53 39,270.40 B 19.83 1,586.40 1,586.40 3,437.20 41,246.40 C 20.82 1,665.60 1,665.60 3,608.80 43,305.60 D 21.86 1,748.80 1,748.80 3,789.07 45,468.80 E 22.95 1,836.00 1,836.00 3,978.00 47,736.00 pt130 A 19.05 1,524.00 1,524.00 3,302.00 39,624.00 B 20.00 1,600.00 1,600.00 3,466.67 41,600.00 C 21.00 1,680.00 1,680.00 3,640.00 43,680.00 D 22.05 1,764.00 1,764.00 3,822.00 45,864.00 E 23.15 1,852.00 1,852.00 4,012.67 48,152.00 pt131 A 19.17 1,533.60 1,533.60 3,322.80 39,873.60 B 20.13 1,610.40 1,610.40 3,489.20 41,870.40 C 21.14 1,691.20 1,691.20 3,664.27 43,971.20 D 22.19 1,775.20 1,775.20 3,846.27 46,155.20 E 23.30 1,864.00 1,864.00 4,038.67 48,464.00 pt132 A 19.33 1,546.40 1,546.40 3,350.53 40,206.40 B 20.30 1,624.00 1,624.00 3,518.67 42,224.00 C 21.31 1,704.80 1,704.80 3,693.73 44,324.80 D 22.38 1,790.40 1,790.40 3,879.20 46,550.40 E 23.50 1,880.00 1,880.00 4,073.33 48,880.00 Page 19 of 26 419 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt133 A 19.54 1,563.20 1,563.20 3,386.93 40,643.20 B 20.51 1,640.80 1,640.80 3,555.07 42,660.80 C 21.53 1,722.40 1,722.40 3,731.87 44, 782.40 D 22.61 1,808.80 1,808.80 3,919.07 47,028.80 E 23.75 1,900.00 1,900.00 4;116.67 49,400.00 pt134 A 19.68 1,574.40 1,574.40 3,411.20 40,934.40 B 20.67 1;653.60 1,653.60 3,582.80 42,993.60 C 21.70 1,736.00 1,736.00 3,761.33 45,136.00 D 22.79 1,823.20 1,823.20 3,950.27 47,403.20 E 23.93 1,914.40 1,914.40 4,147.87 49,774.40 pt135 A 19.88 1,590.40 1,590.40 3,445.87 41,350.40 B 20.88 1,670.40 1,670.40 3;619.20 43,430.40 C 21.92 1,753.60 1,753.60 3,799.47 45,593.60 D 23.02 1,841.60 1,841.60 3,990.13 47,881.60 E 24.17 1,933.60 1,933.60 4,189.47 50,273.60 pt136 A 20.08 1,606.40 1,606.40 3,480.53 41,766.40 B 21.08 1,686.40 1,686.40 3,653.87 43,846.40 C 22.14 1,771.20 1;771.20 3,837.60 46,051.20 D 23.25 1,860.00 1,860.00 4,030.00 48,360.00 E 24.42 1,953.60 1,953.60 4,232.80 50,793.60 pt137 A 20.25 1,620.00 1,620.00 3,510.00 42,120.00 B 21.26 1,700.80 1,700.80 3,685.07 44,220.80 C 22.32 1,785.60 1,785.60 3,868.80 46,425.60 D 23.43 1,874.40 1,874.40 4,061.20 48,734.40 E 24.61 1,968.80 1,968.80 4,265.73 51,188.80 pt138 A 20.45 1,636.00 1,636.00 3,544.67 42,536.00 B 21.47 1,717.60 1,717.60 3,721.47 44,657.60 C 22.55 1,804.00 1,804.00 3,908.67 46,904.00 D 23.66 1,892.80 1,892.80 4,101.07 49;212.80 E 24.86 1,988.80 1,988.80 4,309.07 51,708.80 pt139 A 20.63 1,650.40 1,650.40 3;575.87 42;910.40 B 21.67 1,733.60 1,733.60 3,756.13 45,073.60 C 22.75 1,820.00 1,820.00 3,943.33 47,320.00 D 23.88 1,910.40 1,910.40 4,139.20 49,670.40 E 25.08 2,006.40 2,006.40 4,347.20 52,166.40 Page 20 of 26 420 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt140 A 20.80 1,664.00 1.664.00 3,605.33 43,264.00 B 21.84 1,747.20 1,747.20 3,785.60 45,427.20 C 22.93 1,834.40 1,834.40 3,974.53 47,694.40 D 24.07 1,925.60 1,925.60 4,172.13 50,065.60 E 25.28 2,022.40 2,022.40 4,381.87 52,582.40 pt141 A 21.00 1,680.00 1,680.00 3,640.00 43,680.00 B 22.05 1,764.00 1,764.00 3,822.00 45,864.00 C 23.15 1,852.00 1,852.00 4,012.67 48,152.00 D 24.31 1,944.80 1,944.80 4,213.73 50,564.80 E 25.52 2,041.60 2,041.60 4,423.47 53,081.60 pt142 A 21.16 1,692.80 1,692.80 3,667.73 44,012.80 B 22.22 1,777.60 1,777.60 3,851.47 46,217.60 C 23.33 1,866.40 1,866.40 4,043.87 48,526.40 D 24.50 1,960.00 1,960.00 4,246.67 50,960.00 E 25.72 2,057.60 2,057.60 4;458.13 53,497.60 pt143 A 21.35 1,708.00 1,708.00 3,700.67 44,408.00 B 22.42 1,793.60 1,793.60 3,886.13 46,633.60 C 23.54 1,883.20 1,883.20 4,080.27 48,963.20 D 24.71 1,976.80 1,976.80 4,283.07 51,396.80 E 25.95 2,076.00 2,076.00 4,498.00 53,976.00 pt144 A 21.54 1,723.20 1,723.20 3,733.60 44,803.20 B 22.63 1,810.40 1,810.40 3,922.53 47,070.40 C 23.76 1,900.80 1,900.80 4,118.40 49,420.80 D 24.95 1,996.00 1,996.00 4,324.67 51,896.00 E 26.19 2,095.20 2,095.20 4,539.60 54,475.20 pt145 A 21.77 1,741.60 1,741.60 3,773.47 45,281.60 B 22.86 1,828.80 1,828.80 3,962.40 47,548.80 C 24.01 1,920.80 1,920.80 4,161.73 49,940.80 D 25.20 2,016.00 2,016.00 4,368.00 52,416.00 E 26.46 2,116.80 2,116.80 4,586.40 55,036.80 pt146 A 21.96 1,756.80 1,756.80 3,806.40 45,676.80 B 23.06 1,844.80 1,844.80 3,997.07 47,964.80 C 24.21 1,936.80 1,936.80 4,196.40 50,356.80 D 25.42 2,033.60 2,033.60 4,406.13 52,873.60 E 26.69 2,135.20 2,135.20 4,626.27 55,515.20 Page 21 of 26 421 of 585 11 /28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt147 A 22.15 1,772.00 1,772.00 3,839.33 46,072.00 B 23.26 1,860.80 1,860.80 4,031.73 48,380.80 C 24.42 1,953.60 1,953.60 4,232.80 50,793.60 D 25.64 2,051.20 2,051.26 4,444.27 53,331.20 E 26.92 2,153.60 2,153.60 4,666.13 55;993.60 pt148 A 22.35 1,788.00 1,788.00 3,874.00 46,488.00 B 23.47 1;877.60 1,877.60 4,068.13 48,817.60 C 24.64 1,971.20 1,971.20 4,270.93 51,251.20 D 25.87 2,069.60 2,069.60 4,484.13 53,809.60 E 27.16 2,172.80 2,172.80 4,707.73 56;492.80 pt149 A 22.58 1,806.40 1,806.40 3,913.87 46,966.40 B 23.71 1,896.80 1,896.80 4,109.73 49,316.80 C 24.89 1,991.20 1,991.20 4,314.27 51,771.20 D 26.13 2,090.40 2,090.40 4,529.20 54,350.40 E 27.44 2,195.20 2,195.20 4,756.27 57;075.20 pt150 A 22.78 1;822.40 1,822.40 3,948.53 47;382.40 B 23.92 1,913.60 1,913.60 4,146.13 49,753.60 C 25.11 2,008.80 2,008.80 4,352.40 52,228.80 D 26.36 2,108.80 2,108.80 4;569.07 54,828.80 E 27.68 2,214.40 2,214.40 4,797.87 57,574.40 pt151 A 22.99 1,839.20 1,839.20 3,984.93 47,8.19.20 B 24.13 1;930.40 1,930.40 4,182.53 50,190.40 C 25.35 2,028.00 2,028.00 4,394.00 52,728.00 D 26.61 2,128.80 2,128.80 4,612.40 55,348.80 E 27.94 2,235.20 2,235.20 4,842.93 58,115.20 pt152 A 23.18 1,854.40 1,854.40 4,017.87 48,214.40 B 24.34 1,947.20 1,947.20 4,218.93 50,627.20 C 25.57 2,045.60 2,045.60 4,432.13 53,185.60 D 26.84 2,147.20 2,147.20 4,652.27 55,827.20 E 28.19 2,255.20 2,255.20 4,886.27 58,635.20 pt153 A 23.37 1,869.60 1,869.60 4,050.80 48;609.60 B 24.54 1,963.20 1,963.20 4,253.60 51,043.20 C 25.78 2,062.40 2,062.40 4,468.53 53,622.40 D 27.06 2,164.80 2,164.80 4,690.40 56,284.80 E 28.41 2,272.80 2,272.80 4,924.40 59,092.80 Page 22 of 26 422 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt154 A 23.60 1,888.00 1,888.00 4,090.67 49,088.00 B 24.78 1,982.40 1,982.40 4,295.20 51,542.40 C 26.02 2,081.60 2,081.60 4,510.13 54,121.60 D 27.32 2,185.60 2,185.60 4,735.47 56,825.60 E 28.69 2,295.20 2,295.20 4,972.93 59,675.20 pt155 A 23.80 1,904.00 1,904.00 4,125.33 49,504.00 B 24.99 1,999.20 1,999.20 4,331.60 51,979.20 C 26.25 2,100.00 2,100.00 4,550.00 54,600.00 D 27.55 2,204.00 2,204.00 4,775.33 57,304.00 E 28.93 2,314.40 2,314.40 5,014.53 60,174.40 pt156 A 24.04 1,923.20 1,923.20 4,166.93 50,003.20 B 25.24 2,019.20 2,019.20 4,374.93 52,499.20 C 26.50 2,120.00 2,120.00 4,593.33 55,120.00 D 27.82 2,225.60 2,225.60 4,822.13 57,865.60 E 29.21 2,336.80 2,336.80 5,063.07 60,756.80 pt157 A 24.27 1,941.60 1,941.60 4,206.80 50,481.60 B 25.49 2,039.20 2,039.20 4,418.27 53.019.20 C 26.77 2,141.60 2,141.60 4,640.13 55,681.60 D 28.11 2,248.80 2,248.80 4,872.40 58,468.80 E 29.51 2,360.80 2,360.80 5,115.07 61,380.80 pt158 A 24.49 1,959.20 1,959.20 4,244.93 50,939.20 B 25.71 2,056.80 2,056.80 4,456.40 53,476.80 C 27.00 2,160.00 2,160.00 4,680.00 56,160.00 D 28.35 2,268.00 2,268.00 4,914.00 58,968.00 E 29.77 2,381.60 2,381.60 5,160.13 61,921.60 pt159 A 24.75 1,980.00 1,980.00 4,290.00 51,480.00 B 25.99 2,079.20 2,079.20 4,504.93 54,059.20 C 27.29 2,183.20 2,183.20 4,730.27 56,763.20 D 28.65 2,292.00 2,292.00 4,966.00 59,592.00 E 30.09 2,407.20 2,407.20 5,215.60 62,587.20 pt160 A 24.94 1,995.20 1,995.20 4,322.93 51,875.20 B 26.18 2,094.40 2,094.40 4,537.87 54,454.40 C 27.50 2,200.00 2,200.00 4,766.67 57,200.00 D 28.87 2,309.60 2,309.60 5,004.13 60,049.60 E 30.31 2,424.80 2,424.80 5,253.73 63,044.80 Page 23 of 26 423 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TINIE & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt161 A 25.16 2,013.16 2,013.16 4,361.85 52,342.16 B 26.42 2,113.81 2,113.81 4,579.92 54,959.06 C 27.74 2,219.51 2,219.51 4,808.94 57,707.26 D 29.13 2,330.48 2,330.48 5,049.37 60,592.48 E 30.59 2,447.00 2,447.00 5,301.83 63,622.00 pt162 A 25.39 2,031.28 2,031.28 4,401.11 52,813.28 B 26.66 2,132.84 2.132.84 4,621.15 55,453.84 C 27.99 2,239.48 2,239.48 4,852.21 58,226.48 D 29.39 2,351.45 2,351.45 5,094.81 61,137.70 E 30.86 2,469.03 2,469.03 5,349.57 64,194.78 pt160 A 25.62 2,049.56 2,049.56 4,440.71 53,288.56 B 26.90 2,152.03 2,152.03 4,662.73 55,952.78 C 28.25 2,259.64 2,259.64 4,895.89 58,750.64 D 29.66 2,372.62 2,372.62 5,140.68 61,688.12 E 31.14 2,491.25 2,491.25 5,397.71 64,772.50 pt163 A 25.85 2,068.00 2,068.00 4,480.67 53,768.00 B 27.14 2,171.40 2,171.40 4,704.70 56,456.40 C 28.50 2,279.97 2,279.97 4,939.94 59,279.22 D 29.92 2,393.97 2,393.97 5,186.94 62,243.22 E 31.42 2,513.67 2,513.67 5,446.29 65,355.42 pt164 A 26.08 2,086.61 2,086.61 4,520.99 54,251.86 B 27.39 2,190.95 2,190.95 4,747.06 56,964.70 C 28.76 2,300.49 2,300.49 4,984.40 59,812.74 D 30.19 2,415.52 2,415.52 5,233.63 62,803.52 E 31.70 2,536.29 2,536.29 5,495.30 65,943.54 pt165 A 26.32 2,105.39 2,105.39 4,561.68 54,740.14 B 27.63 2,210.66 2,210.66 4,789.76 57,477.16 C 29.01 2,321.20 2,321.20 5,029.27 60,351.20 D 30.47 2,437.26 2,437.26 5,280.73 63,368.76 E 31.99 2,559.12 2,559.12 5,544.76 66,537.12 pt166 A 26.55 2,124.34 2,124.34 4,602.74 55,232.84 B 27.88 2,230.56 2,230.56 4,832.88 57,994.56 C 29.28 2,342.09 2,342.09 5,074.53 60,894.34 D 30.74 2,459.19 2,459.19 5,328.25 63,938.94 E 32.28 2,582.15 2,582.15 5,594.66 67,135.90 Page 24 of 26 424 of 585 11/28/2017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 201B RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt167 A 26.79 2,143.46 2,143.46 4,644.16 55,729.96 B 28.13 2,250.63 2,250.63 4,876.37 58,516.38 C 29.54 2,363.17 2,363.17 5,120.20 61,442.42 D 31.02 2,481.33 2,481.33 5,376.22 64,514.58 E 32.57 2,605.39 2,605.39 5,645.01 67,740.14 pt168 A 27.03 2,162.75 2,162.75 4,685.96 56,231.50 B 28.39 2,270.89 2,270.89 4,920.26 59,043.14 C 29.81 2,384.44 2,384.44 5,166.29 61,995.44 D 31.30 2,503.66 2,503.66 5,424.60 65,095.16 E 32.86 2,628.84 2,628.84 5,695.82 68,349.84 pt169 A 27.28 2;182.22 2.182.22 4,728.14 56,737.72 B 28.64 2,291.33 2,291.33 4,964.55 59,574.58 C 30.07 2,405.90 2,405.90 5,212.78 62,553.40 D 31.58 2,526.19 2,526.19 5,473.41 65,680.94 E 33.16 2,652.50 2,652.50 5,747.08 68,965.00 pt170 A 27.52 2,201.86 2,201.86 4,770.70 57,248.36 B 28.90 2,311.95 2,311.95 5,009.23 60,110.70 C 30.34 2,427.55 2,427.55 5,259.69 63,116.30 D 31.86 2,548.93 2,548.93 5,522.68 66,272.18 E 33.45 2,676.37 2,676.37 5,798.80 69,585.62 pt171 A 27.77 2,221.67 2,221.67 4,813.62 57,763.42 B 29.16 2,332.76 2,332.76 5,054.31 60,651.76 C 30.62 2,449.40 2,449.40 5,307.03 63,684.40 D 32.15 2,571.87 2,571.87 5,572.39 66,868.62 E 33.76 2,700.46 2,700.46 5,851.00 70,211.96 pt172 A 28.02 2,241.67 2,241.67 4,856.95 58,283.42 B 29.42 2,353.75 2,353.75 5,099.79 61,197.50 C 30.89 2,471.44 2,471.44 5,354.79 64,257.44 D 32.44 2,595.01 2,595.01 5,622.52 67,470.26 E 34.06 2,724.76 2,724.76 5,903.65 70,843.76 pt173 A 28.27 2,261.84 2,261.84 4,900.65 58,807.84 B 29.69 2,374.94 2,374.94 5,145.70 61,748.44 C 31.17 2,493.68 2,493.68 5,402.97 64,835.68 D 32.73 2,618.37 2,618.37 5,673.14 68,077.62 E 34.37 2,749.29 2,749.29 5,956.80 71,481,54 Page 25 of 26 425 of 585 11/2812017 CITY OF NATIONAL CITY PART-TIME & SEASONAL POSITIONS EFFECTIVE: JANUARY 1, 2018 RANGE STEP HOURLY BASE BIWEEKLY MONTHLY ANNUAL pt174 A 28.53 2,282.20 2,282.20 4,944.77 59,337.20 B 29.95 2,396.31 2,396.31 5,192.01 62,304.06 C 31.45 2,516.13 2,516.13 5,451.62 65,419.38 D 33.02 2,641.93 2,641.93 5,724.18 68,690.18 E 34.68 2,774.03 2,774.03 6,010.40 72,124.78 pt175 A 28.78 2,302.74 2,302.74 4,989.27 59,871.24 B 30.22 2,417.88 2,417.88 5,238.74 62,864.88 C 31.73 2,538.77 2,538.77 5,500.67 66,008.62 D 33.32 2,665.71 2,665.71 5,775.71 69,308.46 E 34.99 2,799.60 2,799.00 6,064.50 72,774.00 Page 26 of 26 426 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 427 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City adopting the benefits plan for the Confidential employee group as amended to allow for on -call and call-back pay for the Management Information Systems Technician series in support of critical to 427 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City adopting the benefits plan for the Confidential employee group as amended to allow for on -call and call-back pay for the Management Information Systems Technician series in support of critical technology systems City-wide. PREPARED BY: Stacey Stevenson DEPARTMENT: Human Resources PHONE: 336-4308 APPROVED BY: (nf_e9----- EXPLANATION: See attached explanation FINANCIAL STATEMENT: ACCOUNT NO. 001-411-000-1** 629-403-082-1** * at current rates of pay ENVIRONMENTAL REVIEW: This is not a project and is therefore not subject to environmental review. APPROVED: APPROVED: FY 18 Annual* $9,000 $18,000 $7,950 $15,900 ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt the resolution amending the compensation plan for the Confidential employee group, allowing for on -call and call-back pay for the Management Information Systems Technician series. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: Explanation Summary of Benefits — Confidential Group Resolution 428 of 585 TITLE - Resolution of the City Council of the City of National City adopting the benefits plan for the Confidential employee group as amended to allow for on -call and call-back pay for the Management Information Systems Technician series. EXPLANATION Although the City of National City is in operation twenty four (24) hours a day, seven (7) days a week, most support functions, including information technology (IT), are on duty forty (40) hours a week, working Monday through Thursday from 7:00 a.m. to 6:00 p.m. Yet, the Library, Neighborhood Services and Public Works departments are operational some or all of the weekend (Friday, Saturday and Sunday). Fire and Police are operational twenty four (24) hours a day, seven (7) days a week, relying on technology to receive and transmit critical, safety sensitive information. An extended period of loss of such technology and information can be detrimental to public safety personnel and/or the public. Because of the limited number of budgeted positions, it is not feasible to organize staff in a manner to allow for a more expanded coverage window, yet it is imperative that critical areas such as information technology be available to respond around the clock to emergencies. Based on the above, the City's management information technicians are required to be on call. As dictated, one member of the management technician job series is required to be on call each week to respond to emergency calls for service. In recognition of the limitations placed on the after-hours activities of an employee serving in an on -call capacity, staff seeks to add on -call and call-back pay to the compensation plan for members of this series. Consistent with the premium compensation established by the City Council for applicable members of the Municipal Employees' Association (MEA) group, staff recommends the following: On -Call 1. For a normal work day shift, pay shall be the dollar equivalent to one and one half (1'/) hours at current hourly rate per each day of on -call status. 2. For a normal weekend shift (Saturday and Sunday), pay shall be the dollar equivalent to two (2) hours at current hourly rate per each day of on -call status. 3. For a fixed holiday on which the Civic Center is closed, pay shall be the dollar equivalent to two and one half (21/4) hours at current hourly rate per each day of on -call status. Call Back The City may direct a field response by an employee during other than normal working hours for emergency purposes which shall constitute a "call-back" paid at the rate of one and one-half (1 %) times the number of hours worked, with two (2) hours being the minimum for any call-back that requires return to the work site. Call-back time earned shall not be counted as actual time worked for overtime purposes. FISCAL IMPACT The estimated fiscal impact is $16,950 for fiscal year 2018 and $33,900 annually thereafter. December 19, 2017 429 of 585 *- CALIFORJMJA NkT1ONAL CITY 1PJ'l �cO HPOH Ni6� SUMMARY OF BENEFITS CONFIDENTIAL GROUP December 19, 2017 Holidays The following days are fixed holidays: 1. New Year's Day - January 1st 2. Martin Luther King - 3rd Monday in January 3. Cesar Chavez Birthday - March 31st 4. Memorial Day - Last Monday in May 5. Independence Day - July 4th 6. Labor Day - 1st Monday in September 7. Thanksgiving Day - 4th Thursday in November 8. Day after Thanksgiving 9. Christmas Eve - December 24th 10. Christmas Day - December 25th The following days are credited as "Floating Holidays": 1. Lincoln's Birthday - February 12th 3. Columbus Day - 2nd Monday in October 2. Washington's Birthday - 3rd Monday in February 4. Veterans' Day - November 11 th Also each employee shall be credited with an additional two (2) "Floating Holidays". An employee may use floating holidays in any increment of 15 minutes. Scheduling of time -off must be approved by department head and must be within fiscal year earned. New employees shall not receive credit for holidays which occurred prior to their starting date. Annual Vacation Leave All accrual rates are calculated on the basis of biweekly pay periods: 1 through 5 year's service ➢ 3.08 hours per pay period 6 through 10 year's service ➢ 4.62 hours per pay period 11 through 12 year's service ➢ 4.94 hours per pay period 13 through 14 year's service ➢ 5.23 hours per pay period 15+ year's service ➢ 6.15 hours per pay period New employees will receive, during their initial probationary period, five (5) days (totaling 40 hours) of accrued vacation at completion of nine (9) months of employment and five (5) days (totaling 40 hours) of accrued vacation at completion of probationary period. Then the employee will accrue at the above rates until the maximum of 2.5 times annual accrual is reached. An employee may take earned vacation in any increment of 15 minutes or more. Scheduling of vacation is subject to the approval of the department head. Vacation Sell -Back Employees using a minimum of 50 vacation hours during the eligibility period, and having at least 80 hours "on the books" before and after the request, may convert a minimum of 20 hours and maximum of 80 hours of their accumulated vacation time each year. 430 of 585 Sick Leave Accumulation Each regular full-time career or probationary employee earns sick leave at a rate of 3.69 hours per biweekly pay period. An employee may accumulate sick leave up to a maximum of 400 hours. Sick Leave Incentive Pay Employees using 36 hours of sick leave or less during the 26 complete pay periods of each fiscal year and having a minimum accrual of 160 hours may sell for cash the excess over 160 hours according to the following schedule: Unused Sick Leave From Current Year's Accrual Annual Maximum Sell Back 96 Hours 48 Hours From 80-95 Hours 44 Hours From 60-79 Hours 40 Hours Payment will be made during the month of August of each year Family and Medical Leave An employee is entitled to family and medical care with or without pay for childbirth, illness, injury or death in the employee's family according to State and Federal law. Overtime A. Standard Overtime Employees receive pay or by mutual agreement compensatory time -off at a rate of one and one- half (1'/z) hours for each hour of overtime worked. Maximum accumulation of compensating time off is 100 converted hours. The smallest unit of time credited as overtime is one -quarter (1/4) hour. B. On -Call and Call Back Employees classified in the Management Information Systems series may be assigned to on -call status for possible work and will be required to be available after working hours where the employee can be reached by telephone or pager and can respond within 30 minutes. On -Call Pay shall be compensated at a rate of one and one-half (1'/z) hours at current hourly rate per each day of on -call status. • For a normal work day shift, pay shall be the dollar equivalent to one and one half (1'/z) hours at current hourly rate per each day of on -call status. • For a normal weekend shift (Saturday and Sunday), pay shall be the dollar equivalent to two (2) hours at current hourly rate per each day of on -call status. • For a fixed holiday on which the Civic Center is closed, pay shall be the dollar equivalent to two and one half (2'/z) hours at current hourly rate per each day of on -call status. Whether on assigned on -call or not, Management Information Systems employees may be directed to respond during other than normal working hours for emergency purposes which shall constitute a "call-back", and paid at the rate of one and one-half (1%) times the number of hours Summary of Benefits for Confidential Group 431 of 585 worked, with two (2) hours being the minimum for any call-back that requires return to the work site. Call-back time earned shall not be counted as actual time worked for overtime purposes. Salary Steps The salary range for all classifications consists of five (5) steps; step "A" is the minimum rate and is the normal hiring rate. Eligible for advancement to step "B" after six (6) months of satisfactory service. Advancement to steps "C" and "D" and "E" after 12 months of satisfactory service at the preceding step. See salary schedule for actual pay rate. Wages Employees shall receive a 2% COLA increase on 07/05/16, a 4% market adjustment for the classifications of Executive Assistants I thru IV & Payroll Technician on 07/04/17, and a 2% COLA increase on 07/03/18. Health and Dental Insurance The City shall provide up to $1,000.00 per month for medical and dental benefits. Cash -in -lieu will continue to be available to employees providing proof of coverage under a non -City sponsored health plan. The maximum cash -in -lieu will be limited to the difference between $658.19 per month and the cost of the employee's City of National City medical and dental coverage selection. Employee Life Insurance The City provides a Term Life Insurance of $25,000 for each employee. Additional Voluntary Life Insurance is available for employee and/or dependents at employee's own expense. Short Term/Long Term Disability Insurance All employees shall participate in the City sponsored Disability Insurance Program through payroll deduction at their own expense. If you are unable to work due to medical reasons for an extended period, be sure to check with the Human Resources Department or Payroll Division concerning this income protection program. Retirement Career City employees are members of the California Public Employees' Retirement System (CaIPERS). Tier 1: 3% @ 60 — Employees hired on or before March 21, 2011. Tier 2: 2% @ 60 • Employees hired between March 22, 2011 and December 31, 2012. • Employees hired on or after January 1, 2013 who are classified as continuing or "classic" members of the California Public Retirement System as defined by the State of California Government Code and CalPERS regulations. Tier 3: 2% @ 62 — Employees hired on or after January 1, 2013 who are new members to the California Public Retirement System as defined by the State of California Government Code and CaIPERS regulations. The City does not participate in Social Security, except for the mandatory Medicare contribution. Education Expenses Reimbursement This plan is available to employees who have successfully completed probation and wish to improve their work performance through furthering their education. The plan provides up to $1,200 per fiscal year for Summary of Benefits for Confidential Group 432 of 585 fees and related expenses. Obtain a copy of the reimbursement form which has the procedures from the Human Resources Department before signing -up for the course. Bilingual Pay Those employees who successfully complete the Bilingual Performance Evaluation administered by the Human Resources Department or provide other evidence acceptable to the Human Resources Department of their competence, who are regularly required to use their bilingual skills in Spanish, Tagalog or any other second language approved by the Director of Human Resources, shall receive a pay differential of $50.00 per pay period. Each Department Director shall recommend the position to receive bilingual pay in writing to the Director of Human Resources for approval. Retiree Health Benefit Employees who retire from the City after July 1, 2016, and who have at least 20 years of service shall receive $20/month for each year of pensionable service with the City as the City's contribution towards medical insurance when the employee retires from CaIPERS simultaneously with separating from the City of National City. This contribution shall continue until the retiree qualifies for Medicare, and a qualifying retiree may receive this contribution even if not enrolled in a City health plan, so long as the retiree annually provides the City with written proof that the retiree is using the contributions to pay for health premiums. Other Reimbursements Employees may be reimbursed for the actual cost of the certificate or license expenses and any required medical examinations when such certificate or license is required by the City or law in the performance of their duties. Claims and proof of costs shall be submitted to the Human Resources Department for approval of payment. 125 Flex Spending Program Available to employees is a Section 125 reimbursement plan to allow pre-tax dollars to be used in the payment of employee's portion of medical, dental and insurance premiums, medical expenses and dependent care expenses. For more information, contact the Human Resources Department. Deferred Compensation and Roth IRA Plans Career employees are eligible to participate in a Deferred Compensation and/or Roth IRA plans. These plans enable the employee to defer a specified amount of his/her current income to supplement his/her retirement program and gain potential tax savings. The City's plan is administered by the ICMA Retirement Corporation. Participation is handled through payroll deduction. The City does not make any contributions into this program. Employee Assistance Program The City will provide an Employee Assistance Program at no cost to the employee. The program is available to employees and dependents for professional counseling services in the area of marital, drug and alcohol, stress and other psychological problems. Workers' Compensation If an employee is injured on the job or becomes ill as a result of his/her employment, he/she received Workers' Compensation temporary or permanent payments during the time that he/she is unable to work. Also, the City pays all related medical expenses and, if appropriate and necessary, the cost of rehabilitation training. If you have an accident on the job or suffer an illness, which you believe is caused by your job, be sure to inform your supervisor as soon as possible. He/she will make an appropriate referral for health care, if needed. Summary of Benefits for Confidential Group 4 433 of 585 Recreation and Entertainment Discounts The City teamed up with "Wild at Work" to provide our employees access to corporate discount programs on recreation and entertainment activities. For more information on the types of discounts available, contact the Human Resources Department. Employee Credit Union The credit union, established under Federal rules and regulations, is available to all employees who wish to take advantage of a convenient savings and loan program. Loan payments and savings deposits are handled primarily by payroll deduction. For more information, call (858) 495-3400 or visit the Point Loma Credit Union at 3003 Highland Avenue, Suite C, National City. Civil Service System Provisions of the National City Civil Service Ordinance and Rules cover career employees. The Civil Service system is designed to define the responsibilities and the rights of the employer and the employees, promote employee morale and to provide for economy and efficiency in City services. The Civil Service Commission, which consists of five citizens of National City, oversees the implementation of the civil service system, hears, appeals and acts in an advisory capacity to the City Council and the Personnel Director on personnel matters in the City service. For more information about Civil Service rules and employee rights and responsibilities under the Civil Service System, contact the Human Resources Department. Equal Opportunity & Freedom From Discrimination As an equal opportunity employer, the City fully complies with all applicable State and Federal Employment law. There shall be no discrimination in employment, promotion or any other personnel action based on ethnic background, religion, national origin, marital status, sex, age or disability, unless directly job -related and consistent with the applicable law. There is no mandatory retirement age. The City will make reasonable accommodations to meet the requirements of otherwise qualified applicants and employees who have a physical or mental disabilities. Any questions concerning this policy or complaints of possible discrimination or harassment based on any of the above factors may be directed to the Director of Human Resources. Summary of Benefits for Confidential Group 434 of 585 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING THE BENEFITS PLAN FOR THE CONFIDENTIAL EMPLOYEE GROUP AS AMENDED TO ALLOW FOR ON -CALL AND CALL-BACK PAY FOR THE MANAGEMENT INFORMATION SYSTEMS TECHNICIAN SERIES IN SUPPORT OF CRITICAL TECHNOLOGY SYSTEMS CITY-WIDE. WHEREAS, although the City of National City is in operation twenty-four (24) hours a day, seven (7) days a week, most support functions, including management information technology, are on duty forty (40) hours a week, working Monday through Thursday from 7:00 a.m. to 6:00 p.m.; and WHEREAS, because of the limited number of budgeted positions, it is not feasible to organize staff in a manner to allow for a more expanded coverage window, yet it is imperative that on -call staff be available to respond around the clock to maintain and support the on -going functions of the City and City staff, especially during emergencies that affect public safety; and WHEREAS, one staff member from the Management Information Systems (MIS) Department (management technician job series) is required to be on -call each week to respond to emergency calls for service, and in recognition of the limitations placed on the after-hours activities of an employee serving in an on -call capacity, it is appropriate to include on -call and call-back pay to the compensation plan for members of this series; and WHEREAS, consistent with the premium compensation established by the City Council for applicable members of the Municipal Employees' Association (MEA) group, it is recommended that the benefits plan for the Confidential Employee Group be amended to allow for on -call and call-back pay for the Management Information Systems Technical series in support of critical technology systems city-wide, as follows: ON -CALL 1. For a normal work day shift, pay shall be the dollar equivalent to one and one half (11/2) hours at current hourly rate per each day of on -call status. 2. For a normal weekend shift (Saturday and Sunday), pay shall be the dollar equivalent to two (2) hours at current hourly rate per each day of on -call status. 3. For a fixed holiday on which the Civic Center is closed, pay shall be the dollar equivalent to two and one half (21/2) hours at current hourly rate per each day of on -call status. CALL BACK The City may direct a field response by an employee during other than normal working hours for emergency purposes which shall constitute a "call-back" paid at the rate of one and one-half (11/2) times the number of hours worked, with two (2) hours being the minimum for any call-back that requires return to the work site. Call-back time earned shall not be counted as actual time worked for overtime purposes. 435 of 585 Resolution No. 2017 — Page Two NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the adoption of the benefits plan for the Confidential employee group, as amended, to allow for on -call and call-back pay for the Management Information Systems Technician series. PASSED and ADOPTED this 19th day of December, 2017. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Angil P. Morris -Jones City Attorney Ron Morrison, Mayor 436 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 437 The following page(s) contain the backup material for Agenda Item: Presentation on a proposal to maintain and operate a community garden by Yalla, Inc. and Mundo Gardens as part of the expansion of Paradise Creek Educational Park. (Housing & Economic Development) 437 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO. ITEM TITLE: Presentation on a proposal to maintain and operate a community garden by Yalla, Inc. and Mundo Gardens as part of the expansion of Paradise Creek Educational Park. PREPARED BY: PHONE: Carlos Aguirre Housing and Econ. Dev. Manager 619 336-4391 EXPLANATION: See attached staff report. DEPARTMENT: Housing & Economic Dev gpment APPROVED BY: FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Staff is seeking further direction in consideration of Yalla and Mundo Garden's proposal to operate a community garden at Paradise Creek Educational Park. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Background Report 438 of 585 Attachment No. 1 Background Report Presentation on a proposal to maintain and operate a community garden by Yalla, Inc. and Mundo Gardens as part of the expansion of Paradise Creek Educational Park. The City of National City is currently in the process of completing construction design for the expansion of Paradise Creek Education Park ("Park"). The construction plans and specifications are scheduled to be completed by January 2018. The City plans to bid out the Paradise Creek Park Expansion Project ("Park Expansion") by March 2018 to start construction by the summer of 2018. The Park Expansion is set to have several features that will serve the community including benches and picnic tables, tree groves, open areas, playgrounds, walking and biking paths, and the renovation and expansion of an existing amphitheater and kiosko. During design workshop meetings with the community held on September 7, 2017 at Kimball Elementary School and on September 28, 2017 at Casa de Salud, the City's design team for the Park Expansion received extensive feedback on the amenities to consider for the Park's expansion. One of the most requested amenities by workshop participants was a community garden. On October 3, 2017, City staff and the design team provided the City Council with a summary of the information gathered from the park design workshops held in September and presented a final design program which incorporated a community garden. The advantages of community gardens are many, ranging from supporting community health and well-being to helping reduce the urban ecological footprint and increasing a sense of connection to the local environment. The City's General Plan Health and Environmental Justice Element Policy HEJ-4.4 encourages the development of convenient and accessible community gardens in appropriate zones, and within each neighborhood, where feasible and Policy HEJ-4.5 encourages new development to include a healthy food supply or edible garden. On September 28, 2017, City staff received a proposal from Yalla, Inc. ("Yalla") and Mundo Gardens to operate the community garden at the Park. Mundo Gardens has been working in National City to promote community gardens as an effective strategy to cultivate community participation and wellness. Mundo Gardens approached Yalla, Inc. to partner on the community garden project at the Park and provide their 501(c)3 non- profit corporation status to fulfill the City's contractual requirements including insurance. Yalla would also serve as a fiscal agent for grant funding opportunities and receive donations to expand programing for the community garden. City staff has met with Yalla and Mundo Gardens on several occasions to discuss their proposal, to gather their input on the design of a community garden, and the form of a Maintenance and Operating Agreement. Yalla and Mundo Gardens proposes to maintain a clean and attractive garden during all four seasons, recruit and involve neighbors, have a system in place with coordinators 1 439 of 585 Attachment No. 1 assigned to adequately distribute and coordinate tasks. Most importantly, the City would not commit any funding for the operational support of the community garden as proposed but instead support grant applications to further develop educational programming at the community garden. Yalla and Mundo Gardens will provide a verbal presentation of their proposal to City Council and will be available to answer any questions. Since the Park's design must be completed by the end of January 2018 to move forward with construction of the Park, staff is seeking further direction from City Council on the community garden. Upon direction from the City Council, City staff can bring back a Maintenance and Operating Agreement with Yalla on January 16, 2018 for City Council's consideration. City staff recommends that a Maintenance and Operation Agreement be fully executed if the community garden is to be incorporated in the final Park Expansion specifications and site plans. Without the firm commitment from a community garden operator, it may be difficult to adequately plan for the operational needs of the community garden by the time the Park is open to the public. If the City considered issuing a Request for Proposal ("RFP") process to seek other interested organizations to operate a community garden, the process could take four to six months to complete. Moreover, previous outreach efforts by City staff to seek interest in operating a community garden at the Park have yielded limited interest. The design team for the Park Expansion has already included a budget for a community garden in the Park Expansion Project. 2 440 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 441 The following page(s) contain the backup material for Agenda Item: Staff Report: Fiscal Year 2017 and 1st Quarter Fiscal Year 2018 Budget Review. (Finance) 441 of 585 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO.: ITEM TITLE: Staff Report: Fiscal Year 2017 and 1st Quarter Fiscal Year 2018 Budget Review PREPARED BY: Mark Roberts, Director of Finance PHONE: 619-336-4265 EXPLANATION: See attached staff report. DEPARTMENT: Finance APPROVED BY: `— *' a.1 FINANCIAL STATEMENT: ACCOUNT NO. NA APPROVED: Li'*/:=Z44 a,t FINANCE APPROVED: MIS ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION FINAL ADOPTION STAFF RECOMMENDATION: Accept the staff report. BOARD / COMMISSION RECOMMENDATION: NA ATTACHMENTS: Staff report 442 of 585 \ t CALIFORNIA ATIONAL CI(Ty C aee�j INCORpoRAAER City Council Staff Report December 19, 2017 ITEM Staff Report: Fiscal Year 2017 and 1st Quarter Fiscal Year 2018 Budget Review BACKGROUND Consistent with the City of National City's Strategic Plan element of providing consistent financial updates, this report provides a review of the financial operating results of the City for fiscal year 2017 and a status report for the first quarter of fiscal year 2018. Budgets are projections based on known and anticipated future revenues and expenditure obligations. Throughout the fiscal year, staff monitors and analyzes actual revenues and expenditures, develops projections, and provides periodic financial reports to the City Council, City Manager, and department directors. The totals presented herein for fiscal year 2017 are a summary of the actual revenues and expenditures, and their impact on fund balance, compared to the corresponding budgeted amounts for the year. However, as of the date of this report, the independent audit for fiscal year 2017 has not concluded. As a result, the actual amounts are subject to change should adjustments be necessary prior to closing the books for the period. The fiscal year 2018 first quarter data reflects revenue and expenditure totals for the period of July 1 St through September 30th compared to the same period for the prior year. DISCUSSION Fiscal Year 2017 The fiscal year 2017 budget authorized a $5.4 million use of unassigned fund balance, $3.3 million of which represents a structural deficit. An additional use of $1.4 million was approved for mid -year adjustments. And appropriations totalling $4.2 million, which represent an approved use of fund balance, were carried forward from the previous fiscal year. But, although an overall use of $11.0 million of fund balance was authorized, a combination of overall cost savings and unanticipated revenues, including many of a one-time nature, resulted in an actual use of $1.7 million, leaving a total fund balance of $48.4 million. This remaining fund balance includes $2.9 million assigned for use on approved capital projects. These unspent capital projects funds have been carried forward for spending on the completion of those projects in the current and future fiscal years. The variances between budgeted and actual revenues and expenditures and the impacts on fund balance are summarized below. 443 of 585 Page 2 Staff Report — Fiscal Year 2017 and 1st Quarter Fiscal Year 2018 Budget Review December 19, 2017 It is important to note, the amounts in this report are subject to change until the annual audit of the City's financial records and comprehensive annual financial report (CAFR) have been completed. Revenues The City receives revenues from various sources, some of which, such as taxes and fees, provide unrestricted cash that may be used at the City's discretion. Other revenues are reserved for specified purposes, for example, grant funds received for capital projects. Actual revenues for fiscal year 2017, listed by source in the table below, were less than their combined budgeted total by approximately $0.9 million. Fiscal Year -End Revenue Totals Revenue Source Actual (Estimated) Adjusted Budget' Variance Sales & Use Tax $ 18,078,608 $ 17,851,000 $ 227,608 District Transactions & Use Tax 11,044,638 10,877,000 167,638 Property Tax2 2,019,235 2,130,570 (111,335) Property Tax in Lieu of VLF 5,936,618 5,902,223 34,395 Other Revenues 14,668,370 15,914,205 (1,245,835) Total $ 51,747,469 $ 52,674,998 $ (927,529) I adopted budget, plus budget adjustments 2 reflects reduction for property tax allocation to the Library and Parks Maintenance funds The positive variances of $227,608 in sales & use tax revenue and $167,638 in district transactions & use tax ("Proposition `D"') revenue resulted from growth in retail sales that exceeded expectations, especially in the categories of autos & transportation and business & industry. Property taxes for fiscal year 2017 were less than anticipated by $111,335. Staff uses the best information available to project these revenues at the time of budget development; however, these estimates are prepared in advance of the release of assessed values by the San Diego County Assessor in June and subsequent adjustments to those values. While actual property tax revenues exceeded the total for fiscal year 2016, they did not reach the amount budgeted for fiscal year 2017. Property tax in lieu of VLF (vehicle license fee) revenue ended the year slightly above its budgeted amount. This revenue, which is tied directly to the annual reported change in assessed value, has consistently climbed over the past five years. The "Other Revenues" category includes various accounts related to ongoing City operations, one-time events, and capital projects reimbursements. The negative variance of $1.2 million in this category is the net result of variances, both positive and negative, across multiple accounts. Significant components include the following unbudgeted or over -/under -realized revenues: 444 of 585 Page 3 Staff Report — Fiscal Year 2017 and 1st Quarter Fiscal Year 2018 Budget Review December 19, 2017 • $4.8 million in revenue was added to the budget mid -year as an offset to an equal amount of additional appropriations for the Westside Infill Transit Oriented Development ("WI- TOD") improvements capital project. In accordance with generally accepted accounting principles, it was determined that these revenues should be recognized as the project money is spent. Because only $0.1 million was spent as of the end of the fiscal year, only the same amount in revenue was recognized. The remaining $4.7 million was classified as deferred revenue and will be recognized as expenses are incurred; • the unbudgeted receipt of $1.2 million in residual balance distributions from the Successor Agency; • the unanticipated receipt of $0.2 million, the City's share of the proceeds from the sale of former Successor Agency -owned real property; • an unanticipated payment of $0.5 million from the City of San Diego related to the termination of the Enterprise Zone program (The Council has approved an appropriation of $140,000 from unassigned fund balance in the current fiscal year for year 1 of the City's economic development program on the basis of the receipt of these funds.); • unbudgeted overtime reimbursements of $0.4 million for the Fire Department strike team's participation in fighting various wildfires throughout the State; • building permits revenues exceeding the budget by $0.2 million; and • a positive variance in transient occupancy tax revenue of $0.2 million. If the $4.7 million in under -realized revenue related to the WI-TOD project were to be excluded, however, "Other Revenues" would reflect a positive variance of $3.4 million and overall revenues would show as being greater than budgeted by $3.7 million. Expenditures As of June 30, 2017, General Fund expenditures totaled $52.0 million, $10.2 million less than the adjusted budget of $62.2 million. Expenditure variances are summarized by category in the table below. The most significant variance, $7.7 million, occurred in the capital projects category. This $7.7 million does not represent savings; rather, it is the sum of as yet unspent monies on specifically authorized capital projects, the largest single amount being $4.8 million for the WI-TOD park project. As is our usual practice, the unspent capital project appropriations have been carried over on a project -by -project basis to fiscal year 2018. 445 of 585 Page 4 Staff Report — Fiscal Year 2017 and 1st Quarter Fiscal Year 2018 Budget Review December 19, 2017 Fiscal Year -End Expenditure Totals Expenditure Type Actual (Estimated) Adjusted Budget' Variance Personnel Services $ 33,889,046 $ 35,502,108 $ 1,613,062 Maintenance & Operations 6,128,802 6,840,585 711,783 Capital Projects 4,273,918 11,994,981 7,721,063 Internal Service Charges 7,387,911 7,416,737 28,826 Other Expenditures 285,627 430,205 144,578 Total $ 51,965,303 $ 62,184,615 $ 10,219,312 1 adopted budget total, plus budget amendments, encumbrances, & capital projects appropriations carried forward from previous fiscal year(s) The remaining $2.5 million of the variance is due to operational cost savings. Personnel cost savings primarily were due to vacant authorized positions in the City Manager's Office and Police Department and less -than -anticipated spending on compensation changes. Maintenance & Operations ("M&O") savings were realized in various accounts, particularly in Professional Services and Contract Services. The variance in "Other Expenditures" results from savings in the Refunds, Contributions, and Special Payments category, the largest of which occurred in the Fee Study, Westside Amortization, and Successor Agency Property Management accounts. (The fee study will be completed in fiscal year 2018 and at a cost significantly lower than originally budgeted.) Transfers In/Out While technically not revenues and expenditures (and, hence, not shown above), transfers in and out of the General Fund contribute to fund balance increases and decreases, respectively. Both transfers into and out of the General Fund equaled their budgeted totals. Net Impact on Fund Balance The table below combines the above revenue and expenditure tables and incorporates the transfers in and transfers out, to compare the adjusted budget's use of fund balance to the actual use. Actual fiscal year 2017 revenues, expenditures, and transfers resulted in an estimated decrease of $1.7 million in the overall fund balance of the General Fund, as compared to the adjusted budgeted usage of $11.0 million, a positive difference of $9.3 million. (Note: the adjusted budget's use of fund balance includes "unassigned" amounts anticipated to be used based on the adopted budget [$5.4 million] and mid -year budget adjustments [$1.4 million], as well as "assigned" amounts (see description below) for appropriations carried forward — primarily for capital projects — from the previous year [$4.2 million].) 446 of 585 Page 5 Staff Report — Fiscal Year 2017 and 1st Quarter Fiscal Year 2018 Budget Review December 19, 2017 Fund Balance Change — Actual vs Budget (Estimated) Actual Adjusted Variance Revenues $ 51,747,469 $ 52,674,998 $ (927,529) Transfers In 519,672 519,672 - Total Revenues & Transfers In $ 52,267,141 $ 53,194,670 $ (927,529) Expenditures $ (51,965,303) $ (62,184,615) $10,219,312 Transfers Out (1,972,835) (1,972,835) - Total Expenditures & Transfers Out $ (53,938,138) $ (64,157,450) $10,219,312 Fund Balance Gain/(Usage) $ (1,670,997) $ (10,962,780) $ 9,291,784 Beginning Fund Balance $ 50,065,188 $ 50,065,188 Ending Fund Balance $ 48,394,190 $ 39,102,408 $ 9,291,783 In accordance with Governmental Accounting Standards Board ("GASB") Statement Number 54, fund balance is classified based primarily on the extent to which its use of resources is constrained. The table below reflects the estimated changes in each category of fund balance within the General Fund from June 30, 2016 to June 30, 2017. The balances are dependent not only upon the results of operations, i.e., revenues and expenditures, but also upon changes in such things as liabilities accrued for employee benefits and unspent appropriations carried over to the succeeding fiscal year. As noted above, the amounts are subject to change until the City's financial statements for fiscal year 2017 have been completed and audited. Components of Fund Balance (Estimated) FY 17 FY 16 Change Nonspendable $ 9,963,816 $ 10,766,098 $ (802,282) Restricted 616,253 754,913 (138,660) Committed 11,585,066 11,585,066 0 Assigned 14,325,682 14,792,381 (466,699) Unassigned 11,903,275 12,166,730 (263,455) Total $ 48,394,092 $ 50,065,188 $ (1,671,096) Summary of fund balance changes by category: Nonspendable — fund balance representing assets which are not in spendable form. Included in the $10.8 million total fiscal year 2016 are real property assets with values totalling $5.8 million that were transferred to the City from the Successor Agency during fiscal year 2016 and a $4.9 million promissory note received in fiscal year 2014 for the sale of the previous Public Works site to the Housing Authority for the WI-TOD project. The $0.8 million decrease in the Nonspendable category is the result of the sale of the Palm Plaza site in fiscal year 2017. 447 of 585 Page 6 Staff Report — Fiscal Year 2017 and 1st Quarter Fiscal Year 2018 Budget Review December 19, 2017 Restricted — category with spending constraints stipulated either "externally" by the provider of the assets or by law. For the City, the primary purpose of this category is to reserve an amount of fund balance equivalent to the subsequent fiscal year's debt service requirement. The $0.1 million decrease is attributable to a decrease in debt service requirements. Committed — total of resources which have internally imposed restrictions mandated by formal action of the City Council. This category comprises the City's $9.1 million Economic Contingency Reserve and the $2.5 million Facilities Maintenance Reserve and is unchanged from fiscal year 2016. Assigned — assets constrained by the Council's intent that they be used for specific purposes but not meeting the more strict criteria for classification as restricted or committed. Of the $14.3 million total, approximately $11.0 million represents employee benefit liabilities and $3.3 million represents designated, but as yet unspent, amounts for capital projects ($2.9 million) and certain other items ($0.4 million) carried forward from the prior year. The difference between the $2.9 million of assigned fund balance attributable to unspent capital projects appropriations and the $7.7 million budgeted but not spent on capital projects noted earlier in this report is $4.8 million in appropriations for the WI-TOD project, which, due to accounting rules, does not result in the reservation of fund balance because it is offset with a corresponding revenue. Unassigned — total of spendable amounts not allocated to the other fund balance categories and which is available for use at Council's discretion. Unassigned fund balance, which is estimated to have decreased by $0.3 million, benefitted not only from the operational savings and better than anticipated revenues discussed above, but also from a decrease in employee benefit liabilities and debt service requirements. This $0.3 million decrease compares favorably to the combined total ($6.8 million) of the fiscal year 2017 adopted budget's anticipated use of $5.4 million and additional mid -year approved uses totalling $1.4 million. 1st Quarter Fiscal Year 2018 The fiscal year 2018 adopted budget authorizes a use of General Fund unassigned fund balance of $4.5 million, including a structural deficit of $3.6 million. Since it is early in the fiscal year, the ability to project year-end revenue and expenditure totals and actual use of fund balance is limited. The most useful information at the end of the first quarter (July 1st through September 30th) is a comparison of the fiscal -year-to-date totals of the City's major revenue sources and expenditure categories for the period for the current and prior fiscal years. This information is summarized in the tables below. 448 of 585 Page 7 Staff Report — Fiscal Year 2017 and 1st Quarter Fiscal Year 2018 Budget Review December 19, 2017 Revenues 1st Quarter Revenue Comparison Revenue Source FY 18 FY 17 Sales & Use Tax $ 1,722,627 $ 1,849,466 District Transactions & Use Tax 1,118,708 1,037,040 Property Tax 47,205 39,860 Property Tax in Lieu of VLF - - Other Revenues 7,033,510 1,799,933 Total $ 9,922,050 $ 4,726,299 The sales & use tax and district transactions & use tax revenue amounts shown are those distributed to the City by the State in September. Amounts received in July and August were accrued to fiscal year 2017. Payments for October and November have since been received, and each of those payments was higher than those received for the same months in the prior year. Fiscal year 2018 property tax revenue is expected to slightly exceed that of fiscal year 2017, consistent with budgeted totals. While the revenue is low for both years, this is normal at this point of the year, as the largest portions of property tax revenues are typically received in December and April, corresponding to tax payment due dates. Because the distribution of property tax in lieu of VLF revenue occurs in January and May, no allocation of this revenue was received in the first quarter of the current or previous fiscal year. However, having received information from the County regarding fiscal year 2018 distributions of property tax in lieu of VLF, staff can report that this revenue will be $6,393,152, $172,923 above budget. The significant increase to other revenues compared to fiscal year 2017 is the receipt of unbudgeted bond proceeds of $5.4 million related to the cost of the Energy Services Agreement with Ameresco for the energy efficiency and renewable energy program. Expenditures 1st Quarter Expenditure Comparison Expenditure Type FY 18 FY 17 Personnel Services $ 10,481,185 $ 6,763,168 Maintenance & Operations (M&O) 949,311 556,407 Capital Projects 1,043,879 950,864 Internal Service Charges 2,007,806 1,834,436 Other Expenditures 53,698 63,818 Total $ 14,535,879 $ 10,168,693 449 of 585 Page 8 Staff Report — Fiscal Year 2017 and 1st Quarter Fiscal Year 2018 Budget Review December 19, 2017 Personnel costs are higher than fiscal year 2017's at the same point, due to the one-time lump - sum prepayment of $4.9 million for the unfunded actuarial accrued liability ("UAAL") portion of the City's annual pension contribution. Effective beginning fiscal year 2018, Ca1PERS requires the UAAL contribution, whether prepaid or paid monthly, to be paid as a fixed dollar amount rather than as a percentage of payroll, the method by which monthly contributions had been calculated and paid previously. By choosing the annual prepayment option, the City will recognize a budgetary savings of $0.2 million. Setting aside retirement plan expenditures, all other personnel related expenditures for the first quarter were $0.4 million greater than the previous year's first quarter. Fiscal -year-to-date 2018 M&O expenditures are higher than for fiscal year 2017, principally due to the timing of the $0.5 million Police Facility lease payment. In previous fiscal years, the payment was made in the second quarter. For this fiscal year, the payment (which was the final payment) was made in July in order to facilitate the financing for the Energy Services Agreement with Ameresco. Absent the lease payment, M&O expenditures are below those for the first quarter of last fiscal year. Although cost savings are again likely in fiscal year 2018, the savings margin (actual vs budget) is likely to be smaller than in recent years due, in part, to budget tightening in various accounts. Budgetary Outlook The fiscal year 2018 planned use of General Fund unassigned fund balance is $4.5 million. However, based on the City's recent history, the actual use of fund balance is anticipated to be lower than this amount due to conservative revenue budgeting and prudent spending. The mid- year budget status report will include projections to year-end for revenues and expenditures and their combined impact on fund balance. Conclusion While the City's general fund experienced a decrease in fund balance in fiscal year 2017, it was to much less of an extent than was anticipated at the beginning of the year. This experience marks a change from past years, where, while the budget incorporated the use of fund balance as a funding source, conservative spending and better than anticipated revenues resulted in an increase in fund balance, particularly in the unassigned category. Factors likely to affect fund balance in the future include the following: • Actuarial adjustments by the California Public Retirement System (Ca1PERS) are expected to require increases in the City's employer contribution to employee pension funds into the foreseeable future. For fiscal year 2019, the City's contribution is estimated to increase over the fiscal year 2018 rate by 10.1%, from 27.462% of payroll to 30.235% of payroll, for miscellaneous employees and by 5.1%, from 48.005% of payroll to 50.472% of payroll, for public safety employees. These increases are currently estimated to accelerate pension contribution growth in the next fiscal year by an additional $1.4 million. 450 of 585 Page 9 Staff Report — Fiscal Year 2017 and 1st Quarter Fiscal Year 2018 Budget Review December 19, 2017 • An assessment of the City's deferred infrastructure, facilities maintenance, and historic and cultural assets needs was completed during the previous fiscal year and brought forward to the City Council as part of its February 28, 2017 pension, other post - employment benefit, and capital needs workshop. The cost to the General Fund to complete all of the recommended maintenance would be at least $30 million; therefore, staff is currently analyzing various options for scheduling and financing this cost and will develop recommendations for consideration by Council. • It is anticipated that at least $1.8 million in annual appropriations will be necessary for streets and road improvement projects, to meet the "maintenance of effort" requirement for eligibility to receive all available funding from the San Diego Association of Governments (SANDAG) TransNet program and from the State in relation to the recently -passed Road Repair and Accountability Act. • The City is currently in discussions with organizations regarding management of the National City Aquatic Center. While the annual cost of operation of the Aquatic Center is under negotiation, the cost for immediate equipment and infrastructure has been estimated to be $180,000. • Equipment necessary for firefighting must be replaced periodically. Within the next five years, it is anticipated firefighter breathing equipment will require replacement at a cost of approximately $200,000 and station alerting hardware at approximately $125,000 for the City's three fire stations. RECOMMENDATION Accept and file this staff report. 451 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 452 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 (Housing Authority) approving the refinancing terms for Vista Del Sol Apartments located at 1545 "Q" Avenue in National City that preserves affordability for 452 of 585 CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY COUNCIL AGENDA STATEMENT MEETING DATE: December 19, 2017 AGENDA ITEM NO. ITEM TITLE: Resolution of the Community Development Commission -Housing Authority of the City of National City ("Housing Authority") approving the refinancing terms for Vista Del Sol Apartments located at 1545 "Q' Avenue in National City that preserves affordability for 130 apartment units through December 31 2073; approving the reinstatement of two loans made by the Housing Authority as one new loan in the total amount of $7,407,795.08 to be assumed by Vista Del Sol Apartment, L.P.; and authorizing the Executive Director to execute the Amended and Restated Loan and Regulatory Agreements and any other documents necessary to close escrow. PREPARED BY: Carlos Aguirre, Housing & Economic Dev. Mgr. PHONE: 619-336-4391 EXPLANATION: See attached Term Sheet (Attachment No. 1). DEPARTMENT: APPROVED B FINANCIAL STATEMENT: ACCOUNT NO. Ho sing & Economic Dlopment APPROVED:/(---- Finance APPROVED: MIS The terms of the refinance are discussed in Attachment No. 1. No additional cash contribution is required from the Housing Authority for the refinance transaction. ENVIRONMENTAL REVIEW: Categorically exempt from CEQA review by 14 CCR 15301(a). ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: n/a ATTACHMENTS: 1. Refinancing Terms 2. Loan and Regulatory Documents 3. Resolution 453 of 585 Attachment No. 1 Vista del Sol Apartments National City, CA Final CDC -HA Term Sheet (Re -Syndication) — Updated 12/6/17 • Project Description National Community Renaissance of California ("NCRC") proposes to refinance Vista del Sol Apartments ("Project") in order to rehabilitate and extend its physical/economic life. The 132 unit apartment community will maintain its affordability mix and will continue to help the City of National City meet its affordable housing goals. The unit mix is and will remain 78 one bedroom units; 46 two bedroom units; 6 three bedroom units; and 2 three bedroom manager's units with an average affordability of 58% of Area Median Income (AMI). The Project is currently owned by Copper Hills Apartments, L.P. ("Original Owner"). In 1999, the Original Owner executed the following promissory notes as well as other related loan documents in favor of the Community Development Commission of the City of National City ("CDC"), collectively, the "CDC Loan": 1) Residual Receipts Note, dated February 18, 1999, in the original principal amount of $2,400,000.00 ("CDC RR Note"). 2) Residual Receipts Note, dated June 1, 1999, in the original principal amount of $4,454,037.07 ("CDC Rehab Note"). NCRC has formed Vista Del Sol Apartments, L.P., a new tax credit limited partnership ("Owner"), which will acquire the Project from the Original Owner and utilize new 4% tax credit equity ("Re -syndication") and tax-exempt bond financing to support the proposed rehabilitation of the Project in December 2017. Owner is assuming the rights and obligations of the Original Owner under the CDC Loan. The Community Development Commission -Housing Authority of the City of National City ("CDC -HA") elected to retain the housing assets of and functions previously performed by the Original Lender pursuant to California Health and Safety Code Section 34176, and thereby, by operation of law, CDC -HA assumed the rights and obligations of the CDC with respect to the CDC Loan. The proposed re -syndication will trigger the need for material changes to the existing terms of the CDC Loans financing and affordability terms for the Project. 454 of 585 Page 1 of 10 Attachment No. 1 • Financing Existing financing on the Project will be modified as follows: • The Original Owner will pay-off the existing permanent loan' held by JP Morgan Chase from proceeds of the sale of the Project; • The CDC -HA and Owner will consolidate the two (2) CDC Loans/Notes into a single Consolidated Loan/Note of $7,407,795.08 and the CDC -HA will amend and restate the same into a Consolidated, Amended and Restated Loan Secured by Deed of Trust ("CDC -HA Loan"); and • Owner will use existing Project reserves ("Reserves") of about $212,313 and operating income ("Operating Income") of about $557,204 to finance acquisition and/or development costs. • CDC -HA Financial Participation Proposed new financing on the Project will include sources in the approximate amounts: • permanent tax-exempt mortgage: $9,007,000; • limited partners (4% tax credits): $9,316,467; • seller take -back: $2,500,000; and, • deferred developer fee: $273,204. Owner will assume and Owner and CDC -HA will amend and restate the documents evidencing the CDC -HA Loan at construction loan closing ("Closing") in December 2017 to assist in the re -syndication and rehab of the Project. The original sources and projected balances of the Original CDC Loan and accrued interest amounts as of December 31, 2017 are as follows: • CDC RR Loan: The CDC and Original Owner entered into that certain Affordable Housing Agreement dated as of December 7, 1988 ("Affordable Housing Agreement"). Pursuant to which the Prior Owner received a secured loan from Original Lender, from the Original Lender's Low and Moderate Income Housing Fund and from HOME funds in an original principal amount of $2,400,000. The Former RR Loan funds have been fully disbursed. $463,677.81 in outstanding principal and $6,955.17 in accrued interest is projected as of December 31, 2017. The sum of principal plus Funded under Multifamily Housing Revenue Bond (Q Avenue Project) 1999 Scrics A (fax Exempt) and 1999 Series B (Taxable) 455 of 585 Page 2 of 10 Attachment No. 1 accrued interest as of December 31, 2017 will be approximately $470,632.98. • CDC Rehab Loan: The Original Owner received a second secured loan from the CDC from the CDC's issuance of tax allocation bond proceeds in an original principal amount of $4,454,037.07. The Former Rehab Loan funds have been fully disbursed. $4,454,037 in outstanding principal and $2,483,125.10 in accrued interest is projected as of December 31, 2017. The sum of principal plus accrued interest as of December 31, 2017 will be approximately $6,937,163.10. CDC -HA Loan Amount: The CDC -HA and Owner will consolidate the above two (2) CDC Loan/Notes into a single consolidated CDC -HA Loan/Note of $7,407,795.08. CDC -HA Loan Interest Rate: The CDC -HA Loan/Note shall bear simple interest at the rate of 3%. All interest will be computed based on a 365-day year and applied to the actual number of days elapsed. CDC -HA Loan Maturity Date: Owner shall pay to the order of CDC -HA the full amount of the outstanding principal under the CDC -HA Loan Agreement together with all accrued but unpaid interest thereon, on the earliest of: (a) December 31, 2073; (b) the date the Property is sold (specifically excluding a transfer of the Property to an affiliate of Owner's managing general partner following the expiration of the tax credit compliance period); or (c) an Event of Default by Owner as defined in the CDC -HA Loan Agreement which has not been cured in the manner and time provided in the CDC -HA Loan Agreement. Notwithstanding the above, payments shall also be due from syndication proceeds, leveraged funds, and other funds received by Owner or an affiliate as required by Lender under the syndication provision of the CDC -HA Loan Agreement. CDC -HA Loan Funding Reserve: Owner will fund a reserve in the amount of $1,200,000.00 ("Loan Funding Reserve"), $500,000 of which the Owner shall fund at closing and $700,000 of which Owner shall fund at permanent loan conversion. The Loan Funding Reserve shall be maintained in a separate account in the name of the Borrower, provided that no disbursements from the 456 of 585 Page 3 of 10 Attachment No. 1 Loan Funding Reserve shall be made without the express written consent of the CDC -HA. The Borrower shall account to the Lender for any monies expended from the reserves. Amount and Time of Payment: Until such time as the Loan Funding Reserve is depleted, Borrower shall make annual payments under CDC -HA Note, equal to the greater of: (i) $250,000.00 (provided that if the amount in the Loan Funding Reserve is less than $250,000.00, then as much as is in the Loan Funding Reserve at such time); or (ii) the CDC-HA's Prorata Share of the Available Cash Flow, as defined below. To the extent the CDC-HA's Prorata Share of the Available Cash Flow in any calendar year is less than $250,000.00, then funds may be disbursed from the Loan Funding Reserve to the CDC -HA in an amount equal to the difference between $250,000.000 and the CDC-HA's Prorata Share of the Available Cash Flow. At such time as all funds in the Loan Funding Reserve have been disbursed to the Lender, as set forth in the immediately preceding sentence, and each calendar year thereafter, the Borrower shall make annual payments under the CDC -HA Note, equal to the CDC-HA's Prorata Share of the Available Cash Flow. Payment for each calendar year shall be made no later than April 15 of the following year. Borrower shall provide Lender, no later than February 15, with an accounting, prepared by an independent auditor, of the Operating Revenues and Operating Expenses, as defined below, for the previous calendar year. CDC-HA's Prorata Share: CDC-HA's Prorata Share means the portion of Available Cash Flow to which CDC - HA is entitled, which shall be split among Project lenders with surplus cash flow loans based on relative loan amounts. For CDC-HA's Note, CDC-HA's Prorata Share shall be 45%. "Available Cash Flow" means the annual Operating Revenues minus the annual Operating Expenses for the property. "Operating Revenues" shall mean all income derived from the Property, and shall include, without limitation: (1) rents (including rent on common space within the Property); (2) rent subsidy payments received on behalf of tenants; (3) interest on income other than interest on reserve accounts approved by Lender; and (4) receipts from laundry, parking, vending, or other services in which a fee is charged. "Operating Expenses" shall mean: (1) all direct costs and expenses necessary to operate the Property as approved by Lender, including but not limited to an annual property 457 of 585 Page 4 of 10 Attachment No. 1 management fee of $87,943.68 ($55.52 per unit per month), increasing by 3% per annum and an annual bookkeeping fee of $15,048 ($9.50 per unit per month; (2) debt service on any loans secured by the Property, provided that such loans have been used to acquire the Property or develop or improve the Project (or to refinance loans used for Project acquisition, development or improvement), have been approved by Lender, and are secured by a deed of trust on the Property that is senior in priority to the Deed of Trust; (3) reasonable payments, approved by Lender, to reserves for operating contingencies, replacement of capital items, and other reserve uses as approved by Lender; (4) a general partner asset management fee of $15,000 increasing annually by 3% (which shall accrue to the extent not paid), an annual social service fee of $36,000 increasing annually by 3% and limited partner asset management fee of $6,500 increasing annually by 3%; (5) any deferred development fee; (6) payments of tax credit adjusters to the limited partners of the Maker; (7) repayment of operating loans made by the general partner of the Maker and (8) repayment of "Voluntary Funding" loans, as defined in Section 7.7 of the Maker's partnership agreement, to the extent any such "Voluntary Funding" loan is made to pay Operating Expenses. CDC -HA Project Monitoring: Owner shall maintain and submit records to CDC -HA within ten business days of CDC-HA's request which clearly document Owner's performance under each requirement of the CDC -HA Loan Documents. Owner shall supply promptly, upon CDC- HA's reasonable request, any information or documentation pertaining to the Project and must cooperate with CDC-HA's representatives on matters related to Project monitoring and evaluation. Commencing upon completion of rehabilitation, Owner shall pay to the CDC -HA an annual monitoring fee ("CDC -HA Loan Monitoring Fee"), up to $215 per unit per year as determined by the CDC -HA in schedules printed by the CDC -HA from time to time. The CDC -HA Loan Monitoring Fee shall be subject to revision annually. The CDC -HA Loan Monitoring Fee shall be paid to the CDC -HA annually within ten (10) days after the CDC -HA provides a written invoice to Owner for the same. Failure to timely pay the CDC -HA Loan Monitoring Fee shall constitute a material default under this Agreement and the Regulatory Agreement. The CDC -HA Loan Monitoring Fee shall be paid to the CDC -HA as a consideration for the lending of funds by the CDC -HA to the Owner. 458 of 585 Page 5 of 10 Attachment No. 1 • CDC -HA Loan Documents: CDC -HA Staff & Legal Expenses: CDC -HA has requested and the Owner has agreed to pay for CDC -HA staff and legal costs associated with the CDC-HA's financial participation in the re -syndication of Vista Del Sol. Non -Recordable Documents to be assigned and assumed: Original Owner and the CDC -HA are all of the current parties to (collectively, the "CDC -HA Loan Documents"): (i) that certain Affordable Housing Agreement dated as of December 7, 1988; (ii) that certain Residual Receipts Promissory Note, dated February 18, 1999, in the original principal amount of $2,400,000.00; (iii) that certain Residual Receipts Promissory Note (Secured by Deed of Trust), dated June 1, 1999, in the original principal amount of $4,454,037.07. The Original Owner will assign all of the Original Owner's interest in the CDC -HA Loan Documents to the Owner, and the Owner will assume all of the Original Owner's interest in the CDC -HA. The CDC -HA will provide its condition precedent to the assignment and assumption of the CDC -HA Loan Documents. Recordable Documents to be assigned and assumed: Original Owner and the CDC -HA are all of the current parties to: (i) that certain Regulatory Agreement and Declaration of Restrictive Covenants dated as of December 7, 1998, and recorded in the Office of the County Recorder for the County of San Diego on December 11, 1998 as Instrument Number 1998-0807600 ("Regulatory Agreement"); and (ii) that certain Operation and Maintenance Agreement dated as of December 7, 1998, and recorded in the Office of the County Recorder for the County of San Diego on December 11, 1998 as Instrument Number 1998-0807604 ("Operation Agreement"). The Original Owner will assign all of the Original Owner's interest in the Regulatory Agreement and Operation Agreement to the Owner, and the Owner will assume all of the Original Owner's interest in the Regulatory Agreement and Operating Agreement. The CDC -HA will provide its condition precedent to the assignment and assumption of the Regulatory Agreement and Operating Agreement. Amended and Restated CDC -HA Loan Documents: The CDC -HA and Owner will amend and restate the Affordable Housing Agreement. Concurrently with this Agreement, the promissory notes for the CDC Loan will be 459 of 585 Page 6 of 10 Attachment No. 1 • City Ground Lease: • Legal Ownership Structure • Transfer of Project consolidated, amended and restated into a single Amended and Restated Promissory Note which will be executed by Owner in the original principal amount of $7,407,795.08. Each deed of trust securing the CDC Loan will be reconveyed, and a new Deed of Trust securing the CDC will be executed and recorded against the Property. The previous regulatory agreements and restrictive covenant executed in connection with the CDC Loan will be amended and restated by Owner and CDC -HA concurrently with this Agreement and recorded against the Property. Ground Lease: Original Owner and the City of National City ("City") are all of the current parties to that certain Ground Lease dated as of August 15, 2000 for that certain parcel located at 1500 O Street, National City with the Assessor's Parcel # 557-440-25 ("Ground Leased Parcel"). The Original Owner will assign all of the Original Owner's interest in the Ground Lease to the Owner, and the Owner will assume all of the Original Owner's interest in the Ground Lease. The City will provide its condition precedent to the assignment and assumption of the Ground Lease. Subsequent to the closing of re - syndication financing, Owner and City will negotiate the fee simple transfer of the Ground Leased Parcel for a price to be determined. Vista Del Sol Apartments, L.P. will be the owner of the Project. The Managing General Partner will be Vista Del Sol GP LLC with National Community Renaissance of California (NCRC) as the managing member. NCRC will also serve as developer, and property manager for Project. NCRC purchased the Special Limited Partner and Limited Partner Interests of the Original Owner in November 2017 upon written consent of CDC -HA to transfer the Special Limited Partner and Limited Partner interests to NCRC from Related California Corporation Partners IV SLP, L.P., the former Special Limited Partner; and, Related California Corporation Partners IV, L.P., the former Limited Partner. The Project is currently owned by Copper Hills Apartments, L.P. Southern California Housing Development Corporation of Orange is the General Partner and NCRC is the Limited Partner. 460 of 585 Page 7 of 10 Attachment No. 1 • Entitlements NCRC has not incurred the need for entitlements. • Predevelopment Costs • Development Overhead • Capitalized Operating Reserve • Replacement Reserves • Project Timeline • Property/Asset Management/Social Services Fees/Other Fees NCRC will use net operating income and existing project reserves to pay for certain predevelopment and construction period costs prior to permanent loan conversion. NCRC and/or CPP have otherwise paid all predevelopment costs for the Project to date, which will be reimbursed by the Project at the close of construction financing. NCRC and WNC/CPP, its development partner/consultant, will be paid a developer fee from tax credit investor proceeds throughout the Project's development, construction and project stabilization. The developer fee will be restricted to the maximum allowable by CTCAC regulations. An Operating Reserve (consisting of 3 months of operating expenses and debt service) will be funded at permanent financing, subject to investor and lender requirements. A Replacement Reserve of $300 per unit per year with no annual increase will be funded from the operating budget beginning at conversion of permanent financing, subject to lender requirements. A capitalized Replacement Reserve of $200,000 will also be funded from development financing sources to supplement the Replacement Reserve to be funded from the operating budget. Closing of Financing — December 2017 Rehab Commencement — January 2018 Rehab Completion — December 2018 NCRC and its affiliates will be contracted by the tax credit limited partnership to provide various services for Project. The property management and bookkeeping fees to NCRC as well as social service fees to Hope Through Housing Foundation will be paid per the amounts and terms defined in the CDC-HA's Prorata Share section of CDC -HA Financial Participation above. In addition, a partnership management fee to the managing general partner asset management fee to the Special Limited Partner will be paid per the amounts and terms defined in CDC-HA's Prorata Share section of CDC -HA Financial Participation above. NCRC shall screen all prospective residents, to include a 461 of 585 Page 8 of 10 Attachment No. 1 • General Contractor • Property Taxes • Subordination • Available Cash Flow Distributions • Affordability Restrictions criminal background check, credit history, third -party verification of income, and residents will execute a "crime free addendum" in the lease contract. United Renovations Specialty Group, a 3rd Party General Contractor, will be contracted by the Owner to be the general contractor and construct the improvements. NCRC will be the Managing Member of Vista Del Sol GP LLC, a Limited Liability Company that will act as Managing General Partner of the tax credit limited partnership and NCRC will apply for an annual 501(c)(3) welfare property tax exemption. As a typical requirement of lenders, the CDC -HA will subordinate the CDC -HA Loan to the construction and permanent loan per lender requirements. Subordination of the CDC -HA Loan to future debt (refinancing) will require CDC -HA approval. The existing affordability restrictions, however, will remain senior to the new construction and permanent loan financing. Available Cash Flow Distributions, as defined in the CDC- HA's Prorata Share section of CDC -HA Financial Participation, will be as follows: • 45% to CDC -HA Loan; • 45% to pay for Seller Carry -Back Loan; • 9.8% to the Limited Partner; • .10% to the Special Limited Partner; and, • .10% to the General Partner Owner agrees to make available, restrict occupancy to, and rent (a) one hundred three (103) of the Project Units to Lower Income (60% AMI) Households, and (b) twenty- seven (27) of the Project Units to Very Low Income (50% AMI) Households, all at an Affordable Rent. At least sixty- two (62) of the Housing Units rented to Lower Income Household (60% AMI) shall be one bedroom units, and at least sixteen (16) of the Housing Units rented to Very Low Income Households (50% AMI) shall be one bedroom units. No more than two units may be set aside for managers and maintenance personnel. Due to differing apartment unit utility configurations where some units have tenant -paid gas utilities (AKA "QUAD" units), the units are further differentiated by this point of 462 of 585 Page 9 of 10 Attachment No. 1 utility set-up differentiation with no conflict with the above affordability restrictions. One Bedroom Units: 12 units @ 50% AMI; 62 units @ 60% AMI; and 4 "QUAD" (i.e. Gas Utility Allowance) units @ 60% AMI. Two Bedroom Units: 8 units @50% AMI; 1 "QUAD" units @ 50% AMI; 34 units @ 60% AMI; and 3 "QUAD" units @ 60% AMI. Three Bedroom Units: 2 "QUAD" units @ 50% AMI and 4 "QUAD" units @ 60% AMI. 2 unrestricted three bedroom units for on -site staff units. • Cost Overruns NCRC/Partnership assumes responsibility for all cost overruns during development of the Project. • Cost Savings Project cost savings will first pay any developer loans to cover cost overruns, then reduce deferred developer fee (if any) and then reduce the CDC -HA residual receipts loan. Final cost savings, if any, will be determined at permanent financing. Any reduction of the CDC -HA residual receipts loan will be in accordance with CTCAC regulations regarding public subsidy and tiebreaker decreases, if applicable. 463 of 585 Page 10 of 10 Attachment No. 2 TITLE INSTRUCTIONS CITY OF NATIONAL CITY AND COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY (Vista Del Sol) TO: Fidelity National Title Company 1300 Dove Street, Suite 310 Newport Beach, CA 92660 Attn: Valerie Rapp Order No. 989-23040793-F-SG4 1. Opening of Escrow. The City of National City ("City") and the Community Development Commission -Housing Authority of the City of National City ("CDC -HA") have been advised that Vista Del Sol Apartments, L.P., a California limited partnership ("Borrower") opened the above - referenced escrow ("Escrow") with you ("Escrow Agent"). The City and the CDC -HA hereby authorize and instruct you as set forth herein. 2. Deposit of Documents. Enclosed herewith are the following: (a) Substitution of Trustee and Full Reconveyance of Deeds of Trust ("Reconveyance") (b) Assignment, Assumption and Consent Agreement (Vista Del Sol -City Ground Lease) (c) Assignment, Assumption and Consent Agreement (Vista Del Sol -CDC -HA Recorded Documents) ("Recorded Documents Assumption") (d) Assignment, Assumption and Consent Agreement (Vista Del Sol -CDC -HA Loan Documents) (e) Amended and Restated Loan Agreement (f) Consolidated, Amended and Restated Promissory Note Secured by Deed of Trust (g) Amended and Restated Regulatory Agreement ("Restated Regulatory Agreement") (h) Deed of Trust, Assignment of Rents and Security Agreement ("Deed of Trust") (i) Subordination Agreement 3. Conditions to Closing. You may close the Escrow as set forth in Section 4, when, and only when you have delivered to the CDC -HA true and complete copies of all of the escrow instructions that you have received all other parties to the Escrow, including any amendments or supplemental 464 of 585 Attachment No. 2 instructions, and any assignments or demands that have been deposited with or delivered to you in connection with the Escrow. 4. Procedure for Closing. Once all of the conditions set forth in Section 3, above, have been satisfied, you shall close the Escrow as set forth in this Section 4. (a) Record the Reconveyance. (b) Record the instruments and documents against the ground lease which secure the loans form all lenders financing the construction of the project. (c) Record the Recorded Documents Assumption, Restated Regulatory Agreement and Deed of Trust in that order. 5. Delivery of Instruments and Documents. All instruments and documents that are to be delivered by Escrow Agent to the CDC -HA shall be personally delivered or sent to the CDC -HA at: c/o Walter F. Spath III, Esq. Christensen & Spath LLP 550 West C Street, Suite 1660 San Diego, CA 92101 6. Sole Instructions; Amendment. These Escrow Instructions constitute the complete and only escrow instructions of the City and the CDC -HA and shall revoke and supersede any prior oral or written instructions you may have received from the City or the CDC -HA. Either the City or the CDC -HA may revoke, cancel, waive, amend, supplement or permit deviations from, any term or condition of these Escrow Instructions in writing or by email. Any purported oral revocation, cancellation, waiver, amendment, supplement or deviation of these Escrow Instructions, shall be ineffective and invalid. Dated as of December 12, 2017 CDC -HA: Community Development Commission -Housing Authority of the City of National City By: Executive Director Approved as to form and legality: By: Deputy City Attorney 465 of 585 Attachment No. 2 NO FEE DOCUMENT Government Code Section 27383 Recording requested by: When recorded mail to: Community Development CDC of the City of National City 140 E. 12th Street, Suite B National City, CA 91950-3312 Attention: Executive Director SUBSTITUTION OF TRUSTEE AND FULL RECONVEYANCE OF DEEDS OF TRUST Copper Hills Apartments Limited Partnership, a California limited partnership, is the trustor, Fidelity National Title Insurance Company is the original trustee, and the Community Development Commission of the Community Development Commission -Housing Authority of the City of National City ("CDC -HA") is the current beneficiary under (collectively, the Deeds of Trust"): (i) that certain Deed of Trust, dated as of February 18, 1999, which was recorded in the Official Records of San Diego County, California, on May 27, 1999, as File No. 1999- 0363599; and (ii) that certain Deed of Trust, dated as of June 1, 1999, which was recorded in the Official Records of San Diego County, California, on June 2, 1999, as File No. 1999-0382563. 1. Substitution of Trustee. The undersigned, as the sole present Beneficiary under each of the Deeds of Trust, hereby substitutes the CDC -HA, whose address is 140 East 12th Street, National City, California 91950, as Trustee in the place of said original trustee in each of the Deeds of Trust. 2. Full Reconveyance of Deeds of Trust. The CDC -HA, as Trustee, in each of the Deeds of Trust hereby reconveys to the person(s) legally entitled thereto, without warranty, all of the estate, title and interest acquired by Trustee under said Deeds of Trust in and to that real property described in the Deeds of Trust. CDC: Community Development Commission -Housing Authority of the City of National City Approved as to Form: By: By: Executive Director Deputy City Attorney 466 of 585 Attachment No. 2 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego ) ) ) On , 2017, before me, , notary public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 467 of 585 Attachment No. 2 ASSIGNMENT, ASSUMPTION AND CONSENT AGREEMENT (Vista Del Sol -City Ground Lease) THIS ASSIGNMENT, ASSUMPTION AND CONSENT AGREEMENT ("Agreement") is dated as of the 12th day of December, 2017, Copper Hills Apartments Limited Partnership, a California limited partnership ("Assignor"), Vista Del Sol Apartments, L.P., a California limited partnership ("Assignee"), and the City of National City ("City"). RECITALS A. Assignor and the City are all of the current parties to that certain Ground Lease dated as of August 15, 2000. B. The Assignor desires to assign all of the Assignor's interest in the Ground Lease to the Assignee, and the Assignee desires to assume all of the Assignor's interest in the Ground Lease from and after the date hereof. C. The consent of the City is a condition precedent to the assignment and assumption of the Ground Lease. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City, Assignor and Assignee hereby agree as follows: 1. Assignment. Assignor assigns and transfers all of its rights, title, interest and obligations under and pursuant to the Ground Lease to Assignee concurrently with the conveyance of the Property from Assignor to Assignee. 2. Assumption. Assignee assumes and agrees to perform all of the obligations, covenants and agreements of Assignor from and after the date hereof under the Ground Lease, in the manner, at the times and in all other respects as therein provided. Assignee further agrees to be bound by all of the terms, covenants and conditions contained in the Ground Lease from and after the date hereof as though the Ground Lease had been originally made, executed and delivered by Assignee. 3. Consent. The City hereby consents to Assignor's conveyance of the Property to Assignee and the assignment of all of Assignor's rights, title, interest and obligations under and pursuant to the Ground Lease, consents to Assignee's assumption of the same, and agrees that the rights of Assignor under the Ground Lease shall inure to the benefit of Assignee. Assignor and Assignee hereby execute this Agreement, on the following express conditions and understandings: The consent of the City to the assignment and assumption as contemplated by this Agreement shall not be deemed consent to any other or subsequent conveyances of the Property, or any part thereof. Assignee shall not convey or otherwise transfer all or any part of the Property without the prior written consent of the City, which consent shall not be unreasonably withheld. Any conveyance or other transfer of all or any part of the Property without the prior written consent of the City, shall be a material breach of the Ground Lease and this Agreement. 468 of 585 Attachment No. 2 4. General Provisions. (a) Binding Effect/No Third Party Beneficiaries. All of the terms and provisions of this Agreement shall be binding upon and inure to the benefit to the parties hereto and respective heirs, legal representatives, successors and assigns. This Agreement is made for the sole benefit and protection of the parties hereto, and their successors and assigns, and no other party shall have any right of action or right to rely hereon. (b) No Novation. Except as otherwise set forth in this Agreement, the parties agree that this Agreement is not in any way intended to, and does not, revise, amend or otherwise affect any of the terms, conditions or priority of the Ground Lease or any other agreement or document by and between the City, Assignor or Assignee, nor the enforcement thereof. The parties hereby agree the provisions of the Ground Lease and all other agreements or documents by and between the City, Assignor or Assignee shall be and remain unmodified and in full force and effect. (c) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. (d) Signature Authority. All individuals signing this Agreement for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the others that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing. IN WITNESS WHEREOF, this Agreement is executed to be effective as of the date first above written. ASSIGNOR: Copper Hills Apartments Limited Partnership, a California limited partnership By: Print Name: Its: [SIGNATURES CONTINUED ON FOLLOWING PAGE] 469 of 585 Attachment No. 2 ASSIGNEE: Vista Del Sol Apartments, L.P., a California limited partnership By: Vista Del Sol GP LLC, a California limited liability company, its general partner By: National Community Renaissance of California, a California nonprofit public benefit corporation, its managing member By: Its: [SIGNATURES CONTINUED ON FOLLOWING PAGE] 470 of 585 Attachment No. 2 City: THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY, By: Its: Executive Director Approved as to form and legality: By: Deputy City Attorney 471 of 585 Attachment No. 2 ASSIGNMENT, ASSUMPTION AND CONSENT AGREEMENT (Vista Del Sol -CDC -HA Loan Documents) THIS ASSIGNMENT, ASSUMPTION AND CONSENT AGREEMENT ("Agreement") is dated as of the 12th day of December, 2017, Copper Hills Apartments Limited Partnership, a California limited partnership ("Assignor"), Vista Del Sol Apartments, L.P., a California limited partnership ("Assignee"), and the Community Development Commission -Housing Authority of the City of National City ("CDC -HA"). RECITALS A. Assignor and the CDC -HA are all of the current parties to (collectively, the "CDC -HA Loan Documents"): (i) that certain Affordable Housing Agreement dated as of December 7, 1988; (ii) that certain Residual Receipts Promissory Note, dated February 18, 1999, in the original principal amount of $2,400,000.00; (iii) that certain Residual Receipts Promissory Note (Secured by Deed of Trust), dated June 1, 1999, in the original principal amount of $4,454,037.07. B. The Assignor desires to assign all of the Assignor's interest in the CDC -HA Loan Documents to the Assignee, and the Assignee desires to assume all of the Assignor's interest in the CDC -HA Loan Documents from and after the date hereof C. The consent of the CDC -HA is a condition precedent to the assignment and assumption of the CDC -HA Loan Documents. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the CDC -HA, Assignor and Assignee hereby agree as follows: 1. Assignment. Assignor assigns and transfers all of its rights, title, interest and obligations under and pursuant to the CDC -HA Loan Documents to Assignee concurrently with the conveyance of the Property from Assignor to Assignee. 2. Assumption. Assignee assumes and agrees to perform all of the obligations, covenants and agreements of Assignor from and after the date hereof under the CDC -HA Loan Documents, in the manner, at the times and in all other respects as therein provided. Assignee further agrees to be bound by all of the terms, covenants and conditions contained in the CDC -HA Loan Documents from and after the date hereof as though the CDC -HA Loan Documents had been originally made, executed and delivered by Assignee. 3. Consent. The CDC -HA hereby consents to Assignor's conveyance of the Property to Assignee and the assignment of all of Assignor's rights, title, interest and obligations under and pursuant to the CDC -HA Loan Documents, consents to Assignee's assumption of the same, and agrees that the rights of Assignor under the CDC -HA Loan Documents shall inure to the benefit of Assignee. Assignor and Assignee hereby execute this Agreement, on the following express 472 of 585 Attachment No. 2 conditions and understandings: The consent of the CDC -HA to the assignment and assumption as contemplated by this Agreement shall not be deemed consent to any other or subsequent conveyances of the Property, or any part thereof. Assignee shall not convey or otherwise transfer all or any part of the Property without the prior written consent of the CDC -HA, which consent shall not be unreasonably withheld. Any conveyance or other transfer of all or any part of the Property without the prior written consent of the CDC -HA, shall be a material breach of the CDC -HA Loan Documents and this Agreement. 4. General Provisions. (a) Binding Effect/No Third Party Beneficiaries. All of the terms and provisions of this Agreement shall be binding upon and inure to the benefit to the parties hereto and respective heirs, legal representatives, successors and assigns. This Agreement is made for the sole benefit and protection of the parties hereto, and their successors and assigns, and no other party shall have any right of action or right to rely hereon. (b) No Novation. Except as otherwise set forth in this Agreement, the parties agree that this Agreement is not in any way intended to, and does not, revise, amend or otherwise affect any of the terms, conditions or priority of the CDC -HA Loan Documents or any other agreement or document by and between the CDC -HA, Assignor or Assignee, nor the enforcement thereof. The parties hereby agree the provisions of the CDC -HA Loan Documents and all other agreements or documents by and between the CDC -HA, Assignor or Assignee shall be and remain unmodified and in full force and effect. (c) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. (d) Signature Authority. All individuals signing this Agreement for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the others that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing. IN WITNESS WHEREOF, this Agreement is executed to be effective as of the date first above written. ASSIGNOR: Copper Hills Apartments Limited Partnership, a California limited partnership By: Print Name: Its: [SIGNATURES CONTINUED ON FOLLOWING PAGE] 473 of 585 Attachment No. 2 ASSIGNEE: Vista Del Sol Apartments, L.P., a California limited partnership By: Vista Del Sol GP LLC, a California limited liability company, its general partner By: National Community Renaissance of California, a California nonprofit public benefit corporation, its managing member By: Its: [SIGNATURES CONTINUED ON FOLLOWING PAGE] 474 of 585 Attachment No. 2 CDC -HA: THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY, By: Its: Executive Director Approved as to form and legality: By: Deputy City Attorney 475 of 585 Attachment No. 2 NO FEE DOCUMENT Government Code Section 27383 Recording requested by: When recorded mail to: Community Development Commission of the City of National City 140 E. 12th Street, Suite B National City, CA 91950-3312 Attention: Executive Director ASSIGNMENT, ASSUMPTION AND CONSENT AGREEMENT (Vista Del Sol -CDC -HA Recorded Documents) THIS ASSIGNMENT, ASSUMPTION AND CONSENT AGREEMENT ("Agreement") is dated as of the 12th day of December, 2017, Copper Hills Apartments Limited Partnership, a California limited partnership ("Assignor"), Vista Del Sol Apartments, L.P., a California limited partnership ("Assignee"), and the Community Development Commission -Housing Authority of the City of National City ("CDC -HA"). RECITALS A. Assignor and the CDC -HA are all of the current parties to: (i) that certain Regulatory Agreement and Declaration of Restrictive Covenants dated as of December 7, 1998, and recorded in the Office of the County Recorder for the County of San Diego on December 11, 1998 as Instrument Number 1998-0807600 ("Regulatory Agreement"); and (ii) that certain Operation and Maintenance Agreement dated as of December 7, 1998, and recorded in the Office of the County Recorder for the County of San Diego on December 11, 1998 as Instrument Number 1998-0807604 ("Operation Agreement"). B. Assignor desires to convey the real property ("Property") described in the Regulatory Agreement and the Operation Agreement to Assignee, and Assignor desires to assign its interests in the Regulatory Agreement and the Operation Agreement to Assignee, and Assignee desires to assume all of the interest, rights and responsibilities of Assignor under the Regulatory Agreement and the Operation Agreement from and after the date hereof. C. The consent of the CDC -HA is a condition precedent to conveyance of the Property and the assignment and assumption of the Regulatory Agreement and the Operation Agreement. 476 of 585 Attachment No. 2 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the CDC -HA, Assignor and Assignee hereby agree as follows: 1. Assignment. Assignor assigns and transfers all of its rights, title, interest and obligations under and pursuant to the Regulatory Agreement and the Operation Agreement to Assignee concurrently with the conveyance of the Property from Assignor to Assignee. 2. Assumption. Assignee assumes and agrees to perform all of the obligations, covenants and agreements of Assignor from and after the date hereof under the Regulatory Agreement and the Operation Agreement, in the manner, at the times and in all other respects as therein provided. Assignee further agrees to be bound by all of the terms, covenants and conditions contained in the Regulatory Agreement and the Operation Agreement from and after the date hereof as though the Regulatory Agreement and the Operation Agreement had been originally made, executed and delivered by Assignee. 3. Consent. The CDC -HA hereby consents to Assignor's conveyance of the Property to Assignee and the assignment of all of Assignor's rights, title, interest and obligations under and pursuant to the Regulatory Agreement and the Operation Agreement, consents to Assignee's assumption of the same, and agrees that the rights of Assignor under the Regulatory Agreement and the Operation Agreement shall inure to the benefit of Assignee. Assignor and Assignee hereby execute this Agreement, on the following express conditions and understandings: The consent of the CDC -HA to the assignment and assumption as contemplated by this Agreement shall not be deemed consent to any other or subsequent conveyances of the Property, or any part thereof. Assignee shall not convey or otherwise transfer all or any part of the Property without the prior written consent of the CDC -HA, which consent shall not be unreasonably withheld. Any conveyance or other transfer of all or any part of the Property without the prior written consent of the CDC -HA, shall be a material breach of the Regulatory Agreement, the Operation Agreement and this Agreement. 4. General Provisions. (a) Binding Effect/No Third Party Beneficiaries. All of the terms and provisions of this Agreement shall be binding upon and inure to the benefit to the parties hereto and respective heirs, legal representatives, successors and assigns. This Agreement is made for the sole benefit and protection of the parties hereto, and their successors and assigns, and no other party shall have any right of action or right to rely hereon. (b) No Novation. Except as amended in a particular agreement or document, the parties agree that this Agreement is not in any way intended to, and does not, revise, amend or otherwise affect any of the terms, conditions or priority of the Regulatory Agreement, the Operation Agreement or any other agreement or document by and between the CDC -HA, Assignor or Assignee, nor the enforcement thereof. The parties hereby agree the provisions of the Regulatory Agreement, the Operation Agreement and all other agreements or documents by and between the CDC -HA, Assignor or Assignee shall be and remain unmodified and in full force and effect. 477 of 585 Attachment No. 2 (c) Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. (d) Signature Authority. All individuals signing this Agreement for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the others that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing. IN WITNESS WHEREOF, this Agreement is executed to be effective as of the date first above written. ASSIGNOR: Copper Hills Apartments Limited Partnership, a California limited partnership By: Print Name: Its: [SIGNATURES CONTINUED ON FOLLOWING PAGE] 478 of 585 Attachment No. 2 ASSIGNEE: Vista Del Sol Apartments, L.P., a California limited partnership By: Vista Del Sol GP LLC, a California limited liability company, its general partner By: National Community Renaissance of California, a California nonprofit public benefit corporation, its managing member By: Its: [SIGNATURES CONTINUED ON FOLLOWING PAGE] 479 of 585 Attachment No. 2 CDC -HA: THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY, a public body corporate and politic By: Its: Executive Director Approved as to form and legality: By: Deputy City Attorney 480 of 585 Attachment No. 2 State of California County of San Diego ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. ) ) ) On , 2017, before me, , notary public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 481 of 585 Attachment No. 2 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego On , 2017, before me, , notary public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 482 of 585 Attachment No. 2 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego On , 2017, before me, , notary public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 483 of 585 Attachment No. 2 CONSOLIDATED, AMENDED AND RESTATED PROMISSORY NOTE SECURED BY DEED OF TRUST (Vista Del Sol Apartments) S7,407,795.08 Copper Hills Apartments Limited Partnership, a California limited partnership ("Original Borrower") executed the following in favor of the Community Development Commission of the City of National City ("Original Lender"), collectively, the "Original Notes": 1) Residual Receipts Promissory Note, dated February 18,1999, in the original principal amount of $2,400,000.00. 2) Residual Receipts Promissory Note (Secured by Deed of Trust), dated June 1, 1999, in the original principal amount of $4,454,037.07. Concurrently herewith, Vista Del Sol Apartments, L.P., a California limited partnership ("Borrower") is assuming the rights and obligations of the Original Borrower under the Original Notes. The Community Development Commission -Housing Authority of the City of National City ("Lender") elected to retain the housing assets of and functions previously performed by the Original Lender pursuant to California Health and Safety Code Section 34176, and thereby, by operation of law, the Lender assumed the rights and obligations of the Original Lender with respect to the Original Notes. The Lender and Borrower hereby consolidate the two (2) Original Notes into this single Consolidated Note and the Commission and Maker hereby amend and restate the same into this Consolidated, Amended and Restated Promissory Note Secured by Deed of Trust ("Note"). FOR VALUE RECEIVED, and in consideration of the Amended and Restated Loan Agreement of even date herewith between Borrower and Lender (the "Loan Agreement"), Borrower, with its principal office at 9421 Haven Avenue, Rancho Cucamonga, CA 91730, hereby promises to pay to the order of the Lender, with an office located at 140 E. 12th Street, Suite B, National City, CA 91950, a principal amount equal to $7,407,795.08 ("Loan"). The Loan shall bear simple interest at the rate of 3%. All interest will be computed based on a 365- day year and applied to the actual number of days elapsed. The obligation of Borrower and Lender with respect to the Loan are subject to the terms of (a) that Amended and Restated Loan Agreement between Borrower and Lender (the "Loan Agreement"), (b) this Consolidated, Amended and Restated Promissory Note Secured by Deed of Trust (the "Note"), and (c) that Deed of Trust, Assignment of Rents, and Security Agreement (the "Deed of Trust") recorded on the Property which secures payment of the Loan. Borrower also promises to pay to the order of Lender accrued interest on the principal balance from time to time remaining unpaid, as well as interest accrued to date, as provided for in the Loan Agreement. 484 of 585 Attachment No. 2 1. BORROWER'S OBLIGATION. This Note evidences the obligation of Borrower to Lender for the repayment of funds disbursed to the Original Borrower by Lender to finance the development of the housing project in the City of National City described in the Loan Agreement. Upon execution of this Note, the Original Notes shall be cancelled and returned to Borrower. 2. AMOUNT AND TIME OF PAYMENT. Until such time as the Loan Funding Reserve is depleted, Borrower shall make annual payments under this Note, equal to the greater of: (i) $250,000.00 (provided that if the amount in the Loan Funding Reserve is less than $250,000.00, then as much as is in the Loan Funding Reserve at such time); or (ii) the Lender's Prorata Share of the Available Cash Flow, as defined below. To the extent the Lender's Prorata Share of the Available Cash Flow in any calendar year is less than $250,000.00, then funds may be disbursed from the Loan Funding Reserve to the Lender in an amount equal to the difference between $250,000.000 and the Lender's Prorata Share of the Available Cash Flow. At such time as all funds in the Loan Funding Reserve have been disbursed to the Lender, as set forth in the immediately preceding sentence, and each calendar year thereafter, the Borrower shall make annual payments under this Note, equal to the Lender's Prorata Share of the Available Cash Flow. Payment for each calendar year shall be made no later than April 15 of the following year. Borrower shall provide Lender, no later than February 15, with an accounting, prepared by an independent auditor, of the Operating Revenues and Operating Expenses, as defined below, for the previous calendar year. "Lender's Prorata Share" means the portion of Available Cash Flow to which Lender is entitled, which shall be split among Project lenders with surplus cash flow loans based on relative loan amounts. For this Note, Lender's Prorata Share shall be 45%. "Available Cash Flow" means 45% of the annual Operating Revenues minus the annual Operating Expenses for the property. "Operating Revenues" shall mean all income derived from the Property, and shall include, without limitation: (1) rents (including rent on common space within the Property); (2) rent subsidy payments received on behalf of tenants; (3) interest on income other than interest on reserve accounts approved by Lender; and (4) receipts from laundry, parking, vending, or other services in which a fee is charged. "Operating Expenses" shall mean: (1) all direct costs and expenses necessary to operate the Property as approved by Lender, including but not limited to an annual property management fee of $7,328.64 ($55.52 per unit per month), increasing by 3% per annum and a bookkeeping fee of $9.50 per unit per month; (2) debt service on any loans secured by the Property, provided that such loans have been used to acquire the Property or develop or improve the Project (or to refinance loans used for Project acquisition, development or improvement), have been approved by Lender, and are secured by a deed of trust on the Property that is senior in priority to the Deed of Trust; (3) reasonable payments, approved by Lender, to reserves for operating contingencies, replacement of capital items, and other reserve uses as approved by Lender; (4) a general partner asset management fee of $15,000 increasing annually by 3% (which shall accrue to the extent not paid), an annual social service fee of $36,000 increasing annually by 3% and limited partner asset management fee of $6,500 increasing annually by 3%; (5) any deferred development fee; (6) payments of tax credit adjusters to the limited partners of the Maker; (7) repayment of operating loans made by the general partner of the Maker and (8) repayment of "Voluntary Funding" loans, as defined in Section 7.7 of the 485 of 585 Attachment No. 2 Maker's partnership agreement, to the extent any such "Voluntary Funding" loan is made to pay Operating Expenses. Not -withstanding the preceding provision, Borrower shall pay to the order of Lender the full amount of the outstanding principal under this Note and the Loan Agreement together with all accrued but unpaid interest thereon, on the earliest of: (a) December 31, 2073; (b) the date the Property is sold (specifically excluding a transfer of the Property to an affiliate of Borrower's managing general partner following the expiration of the tax credit compliance period); or (c) an Event of Default by Borrower as defined in the Loan Agreement which has not been cured in the manner and time provided in the Loan Agreement. Notwithstanding the above, payments shall also be due from syndication proceeds, leveraged funds, and other funds received by Borrower or an affiliate as required by Lender under the syndication provision of the Loan Agreement. 3. PLACE AND MANNER OF PAYMENT. All amounts due and payable under this Note and the Loan Agreement are payable at the office of Lender as set forth above, or at such other place as Lender may designate to Borrower in writing from time to time, in any currency of the United States which on the date of payment is legal tender for the payment of public and private debts. 4. APPLICATION OF PAYMENTS. All payments received on account of this Note shall be first applied to accrued interest and the remainder shall be applied to the reduction of principal; except that if Lender shall have made additional advances under the terms of the Loan Documents (as that term is defined in the Loan Agreement) and such advances have not been repaid, any payments received by Lender, at its option, may be applied first to the repayment of such advances and interest thereon. 5. PREPAYMENT OF LOAN. No prepayment penalty will be charged to Borrower for payment of any portion of this Note prior to the end of the Loan term. 6. WAIVERS. Presentment, notice of dishonor, and protest are waived by all makers, sureties, guarantors, and endorsers of this Note. 7. DEFAULT AND ACCELERATION. This Note is secured by a Deed of Trust. All provisions in the Deed of Trust and the Loan Agreement are hereby made a part of this Note. Borrower agrees that the unpaid balance of the principal amount of this Note, together with all accrued interest thereon and charges owing, shall, at the option of Lender, become immediately due and payable upon any Event of Default as defined in the Loan Agreement which has not been cured pursuant to that Agreement, including without limitation the failure of Borrower to make any payment when due. Upon any Event of Default and failure to cure, Lender may exercise any other right or remedy permitted under the Loan Documents. 8. TRANSFER OF PROPERTY OR PROJECT AND ACCELERATION. Borrower may not make or permit any sale, agreement to sell, assignment, conveyance, lease, or other transfer of any part of the Project or the Property, including the sale of any general or limited partnership interests, the removal of any general partner, or any substantial change in 486 of 585 Attachment No. 2 Project control (collectively referred to as "Transfers"), except as provided for in the Loan Agreement. Any unauthorized Transfer shall constitute an Event of Default and shall be grounds for acceleration of the Loan. 9. LIMITED RECOURSE. Except as provided for below, this Note is a nonrecourse obligation of Borrower. Neither Borrower or its partners, nor any director or employee of Borrower or its partners shall have any personal liability for repaying the principal or interest of the Loan. The sole recourse of Lender for repayment of the principal and interest shall be the exercise of Lender's rights against the Property. This limitation shall not be applicable in the event of actual fraud by Borrower, or any material misrepresentation by Borrower to Lender, in connection with the Loan. Furthermore, this limitation shall not be applicable to the extent of any loss incurred by Lender due to (a) misapplication by Borrower of any Loan proceeds, (b) any willful or intentional damage caused by Borrower to a Property, or (c) the presence or release of any Hazardous Materials on or in a Property. 10. BINDING UPON SUCCESSORS. All provisions of this Note shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors -in -interest, transferees, and assigns of Borrower and Lender; provided, however, that this section does not waive the prohibition in the Loan Agreement on assignment of the Loan by Borrower without Lender's consent. 11. ASSIGNMENT AND ASSUMPTION. Borrower may not assign any of its interests under this Note to any other party, except as specifically permitted under the terms of the Loan Agreement. Any unauthorized assignment shall be void. 12. DEFINITIONS. Capitalized terms not defined in this Note shall have the same meaning as defined in the Loan Agreement. 13. GOVERNING LAW. This Note shall be interpreted under and governed by the laws of the State of California, except for those provisions relating to choice of law and those provisions preempted by federal law. 14. LOAN AGREEMENT CONTROLS. In the event that any provisions of this Note and the Loan Agreement conflict, the terms of the Loan Agreement shall control. 15. SEVERABILITY. Every provision of this Note is intended to be severable. If any provision of this Note is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired. 16. TIME. Time is of the essence in the performance of Borrower's obligations under this Note. 17. ATTORNEYS' FEES AND COSTS. In the event of any Event of Default, or any legal action is commenced to interpret or to enforce the terms of this Note, the prevailing party in 487 of 585 Attachment No. 2 any such action shall be entitled to recover all reasonable attorneys' fees and costs incurred in such action. In addition, Borrower agrees to pay Lender all reasonable costs incurred in collection of amounts due under this Note which are not paid by the due date as specified herein, whether or not a legal action has been filed. 18. WAIVER. Any waiver by Lender of any obligation in this Note must be in writing. No waiver shall be implied from any failure of Borrower to take, or any delay or failure by Lender to take action on any breach or default by Borrower or to pursue any remedy allowed under this Note or applicable law. Any extension of time granted to Borrower to perform any obligation under this Note shall not operate as a waiver or release from any of its obligations under the Note. Borrower hereby waives all defenses and pleas on the grounds of any extensions of the time for repayment of any amounts due under this Note, unless Lender has granted such extensions in writing. Consent by Lender to any act or omission by Borrower shall not be construed to be a consent to any other act or omission or to waive the requirement for Lender's written consent to future waivers. 19. AMENDMENTS AND MODIFICATIONS. Any amendments or modifications to this Note must be in writing, and shall be effective only if executed by both Borrower and Lender. [SIGNATURES BEGIN ON FOLLOWING PAGE] 488 of 585 Attachment No. 2 Dated as of December 12, 2017. "BORROWER" VISTA DEL SOL APARTMENTS, L.P., a California limited partnership By: Vista Del Sol GP LLC, a California limited liability company, its general partner By: National Community Renaissance of California, a California nonprofit public benefit corporation, its manager By: Its: [SIGNATURES CONTINUED ON FOLLOWING PAGE] 489 of 585 Attachment No. 2 CDC: THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY, By: Its: Executive Director Approved as to form and legality: By: Deputy City Attorney 490 of 585 Attachment No. 2 AMENDED AND RESTATED LOAN AGREEMENT VISTA DEL SOL APARTMENTS $7,407,795.08 LOAN THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY, LENDER AND VISTA DEL SOL APARTMENTS, L.P., BORROWER 491 of 585 Attachment No. 2 AMENDED AND RESTATED LOAN AGREEMENT This Amended and Restated Loan Agreement (the "Agreement") is dated as of December 12, 2017, between the Community Development Commission -Housing Authority of the City of National City ("Lender" or "City"), a public body, corporate and politic, and Vista Del Sol Apartments, L.P. ("Borrower"), a California limited partnership. RECITALS This Agreement is entered into based on the following facts and understandings of the parties: A. Borrower proposes to assume and modify the ownership structure of Vista Del Sol Apartments, a 132-unit affordable rental housing development at 1545 Q Avenue, in National City, CA (the "Property"). B. The Community Development Commission of the City of National City ("Original Lender"), and Copper Hills Apartments Limited Partnership, a California limited partnership ("Prior Owner"), entered into that certain Affordable Housing Agreement dated as of December 7, 1988 ("Affordable Housing Agreement"). Pursuant to which the Prior Owner received a secured loan from Original Lender, from the Original Lender's Low and Moderate Income Housing Fund and from HOME funds in an original principal amount of $2,400,000, secured by deed of trust recorded on the property with the San Diego County Recorder on May 27, 1999, as Instrument No. 1999-0363599 ("Former RR Loan"), which is more particularly described in the Affordable Housing Agreement. The Former RR Loan funds have been fully disbursed. $771,658 in principal remains outstanding and $3,797 in interest has accrued as of December 12, 2017, under the Former RR Loan. C. The Prior Owner received a second secured loan from the Original Lender from the Original Lender's issuance of tax allocation bond proceeds in an original principal amount of $4,454,037.07, secured by deed of trust recorded on the property with the San Diego County Recorder on June 2, 1999, as Instrument No. 1999-0382563 ("Former Rehab Loan"), which is more particularly described in the Affordable Housing Agreement. The Former Rehab Loan funds have been fully disbursed. $4,454,037 in principal remains outstanding and $2,349,504 in interest has accrued as of December 12, 2017, under the Former Rehab Loan. The Former Rehab Loan together with the Former RR Loan, shall be referred to herein together, as the "Former Loan." D. The Lender elected to retain the housing assets of and functions previously performed by the Original Lender pursuant to California Health and Safety Code Section 34176, and thereby, by operation of law, the Lender assumed the rights and obligations of the Original Lender with respect to the Affordable Housing Agreement. E. Concurrently herewith the Borrower is acquiring the Property from Prior Owner, the Borrower is assuming all of the rights and liabilities of the Original Owner with respect to the Affordable Housing Agreement and with respect to the Consolidated, Amended and Restated Promissory Note, as defined below. The Lender and Borrower desire to amend and restate the Affordable Housing Agreement in its entirety, as provided herein. Concurrently with this Agreement, the promissory notes for the Former Loan are being consolidated, amended and restated into a single Amended and Restated Promissory Note which will be executed by Borrower in the original principal amount of $7,407,795.08 ("Loan"). Each deed of trust securing the Former Loan is being reconveyed, and a new Deed of Trust securing the Loan is 492 of 585 Attachment No. 2 being executed and recorded against the Property. The previous regulatory agreements and restrictive covenant executed in connection with the Former Loan will be amended and restated by Borrower and Lender concurrently with this Agreement and recorded against the Property. These instruments are intended to secure Lender's continuing interest as a governmental entity in the affordability and habitability of the Property, as well as to secure performance of other covenants contained in such agreements. NOW, THEREFORE, in consideration of the foregoing recitals (which are hereby incorporated into this Agreement) and the covenants and mutual obligations contained in this Agreement, and in reliance on the representations and warranties set forth herein, Borrower and Lender hereby amend and restate the Affordable Housing Agreement in its entirety and agree as follows: DEFINITIONS 1. DEFINED TERMS. The following terms and their derivatives have the meanings set forth below wherever used in this Loan Agreement, attached Exhibits, or documents incorporated into this Loan Agreement by reference: "Budget" means that budget for the Project attached as Exhibit B, incorporated herein by reference. "Deed of Trust" means that Deed of Trust, Assignment of Rents, and Security Agreement recorded on the Property as security for the Loan by Borrower as trustor with Lender as beneficiary, as well as any amendments to, modifications of, and restatements of the deed of Trust. The terms of the Deed of Trust are hereby incorporated into this Agreement by this reference. Copies of the Loan Documents shall not be attached to and recorded as part of the Deed of Trust, but any breach of or misrepresentation under the Loan Documents shall, upon the expiration of any applicable notice and cure period(s), constitute an event of default under the Deed of Trust. "Eligible Costs" means those Project costs associated with the low and very low income affordable component of the Project. In addition, other items may be Eligible Costs if approved in writing by Lender. "Hazardous Materials" means any hazardous or toxic substances, materials, wastes, pollutants, or contaminants which are defined, regulated, or listed as "hazardous substances," "hazardous wastes," "hazardous materials," "pollutants," "contaminants," or "toxic substances," under applicable Hazardous Materials Laws, including without limitation petroleum and petroleum byproducts, flammable explosives, urea formaldehyde insulation, radioactive materials, asbestos, and lead. Hazardous Materials do not include substances that are used or consumed in the normal course of developing, operating, or occupying a housing project, to the extent and degree that such substances are stored, used, and disposed of in the manner and in amounts that are consistent with normal practice and legal standards. "Hazardous Materials Laws" means: the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601, et seq. ("CERCLA"); the Hazardous Materials Transportation Act, 49 U.S.C. § 1801 et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq. ("RCRA"); the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; the Clean Water Act, 33 U.S.C. § 1251 et seq.; the California Hazardous Waste Control Act, Health and Safety Code § 25100 et seq. the California Hazardous Substance Account Act, Health and Safety Code § 25330 et seq.; the California Safe Drinking Water and Toxic Enforcement Act, Health and Safety Code § 493 of 585 Attachment No. 2 25249.5 et seq.; California Health and Safety Code § 25280 et seq. (Underground Storage of Hazardous Substances); the California Hazardous Waste Management Act, Health and Safety Code § 25170.1 et seq.; California Health and Safety Code § 25501 et seq. (Hazardous Materials Release Response Plans and Inventory); or the California Porter -Cologne Water Quality Control Act, Water Code § 13000 et seq., all as amended, or any other federal, state or local statute, law, ordinance, resolution, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning any hazardous, toxic or dangerous waste, substance, or material, as now or any time hereafter in effect. "Limited Partners" means WNC California Holding, LLC, a California limited liability company, as investor limited partner, and WNC Housing, L.P., a California limited partnership as special limited partner. "Loan" means the loan of funds from Lender to Borrower, all of which have been fully disbursed, for the Project pursuant to this Agreement, consisting of the Former Loan that has been assumed under this Loan Agreement. "Loan Documents" means collectively this Amended and Restated Loan Agreement, the Deed of Trust, and the Consolidated, Amended and Restated Note, as they may be amended, modified, or restated from time to time, along with all exhibits and attachments to these documents. "Loan Funding Reserve" means the reserve in the amount of $1,200,000.00, $500,000 of which the Borrower shall fund at closing and $700,000 of which Borrower shall fund at permanent loan conversion. The Loan Funding Reserve shall be maintained in a separate account in the name of the Borrower, provided that no disbursements from the Loan Funding Reserve shall be made without the express written consent of the Lender. The Borrower shall account to the Lender for any monies expended from the reserves. "Note" or "Consolidated, Amended and Restated Note" mean the Consolidated, Amended and Restated Promissory Note executed by Borrower in favor of Lender evidencing the Loan, which is secured by the Deed of Trust, as well as any amendments to or modifications of the Note. The terms of the Notes are hereby incorporated into this Agreement by this reference. "Partnership Agreement" means the Amended and Restated Agreement of Limited Partnership of the Borrower dated on or about the date hereof, as amended from time to time. "Project" means the rehabilitation of the Property for residential and other uses as set forth in the attached Exhibit D, incorporated herein by reference. "Project Unit" means any housing unit developed on the Property as part of the Project. "Property" means all or any portion of the real property described in the attached Exhibit A, incorporated herein by reference, and any buildings or improvements now or hereafter situated on this real property. "Replacement Reserve" has the meaning set forth in Section 17 of the Regulatory Agreement. "Regulatory Agreement" or "Amended and Restated Regulatory Agreement" mean that Amended and Restated Regulatory Agreement executed by Borrower and Lender and recorded 494 of 585 Attachment No. 2 against the Property contemporaneous with this Loan, which, inter alia, restricts the rents and occupancy of Project Units, as well as any amendments to or modifications of said Regulatory Agreement. "Schedule" means the schedule for submissions and Project development set forth in the attached Exhibit E, incorporated herein by reference. TERMS OF LOAN 2. LOAN ASSUMPTION. Notwithstanding the assumption by Borrower of the following documents, the parties hereby acknowledge and agree that the Affordable Housing Agreement, the promissory notes for the Former Loan, each deed of trust securing the Former Loan and the previous regulatory agreements and restrictive covenant executed in connection with the Former Loan (the "Preexisting Loan Documents") are of no further force and effect and to the extent of a conflict between the Preexisting Loan Documents and the Loan Documents, the Loan Documents shall control. 3. INTEREST. Starting on the date of this Agreement, this Loan shall bear simple interest at the rate equal to 3% per annum. 4. SECURITY. The Loan shall be secured by the Deed of Trust on the Property. 5. TERM OF LOAN. The Loan shall be repaid as provided for in the Note. 6. PREPAYMENT OF LOAN. No prepayment penalty will be charged to Borrower for payment of any portion of the Loan amount prior to the end of the Loan term. However, any prepayment of the Loan shall not affect Borrower's obligations under the Regulatory Agreement, which shall remain in full force and effect for the entire term of the Regulatory Agreement. 7. LIMITED RECOURSE. Except as provided below, this Loan is a nonrecourse obligation of Borrower. Neither Borrower nor its partners or members, nor any director or employee of Borrower or its partners or members, shall have any personal liability for repaying the principal or interest of the Loan. The sole recourse of Lender for repayment of the principal and interest shall be the exercise of Lender's rights with respect to the Property, as more specifically described in of the Deed of Trust. Notwithstanding the foregoing, the Loan shall be recourse to Borrower in the event of actual fraud by Borrower, or any material misrepresentation by Borrower to Lender, in connection with the Loan. Furthermore, Borrower shall be liable to Lender for any loss incurred by Lender due to (a) misapplication by Borrower of any Loan proceeds, (b) any willful or intentional damage caused by Borrower to the Property, or (c) the presence or release of any Hazardous Materials on or in the Property. CONDITIONS TO CLOSING 8. CONDITIONS PRECEDENT TO CLOSING. Lender is not obligated to close the Loan until all of the following conditions precedent have been satisfied: A. Borrower has executed and delivered the Note to Lender, and has executed and recorded the Deed of Trust and Regulatory Agreement on the Property. 495 of 585 Attachment No. 2 B. There is no Event of Default by Borrower, nor any act, failure, omission or condition that would constitute an Event of Default (to the best of Lender's knowledge: (i) no Event of Default has occurred; and (ii) no event of omission has transpired that would with the passage of time result in an Event of Default). C. Lender is reasonably assured that rehabilitation of the Project would be consistent with the rules and regulations of all outside funding sources for the Loan, including HUD, and all other applicable legal standards. D. Borrower has timely delivered to Lender all documents required by the Loan Documents and the Regulatory Agreement, including evidence of insurance coverage, all permits, licenses, and approvals required to rehabilitate the portion (including appropriate environmental review), and a construction schedule satisfactory to Lender, and has complied with all reporting requirements set forth in this Agreement. E. There are no outstanding mechanics liens or stop notices related to the Property, and Borrower has furnished to Lender full waivers or releases of lien claims if required by Lender. F. Lender is satisfied that the financing for development of the Project for which Borrower has received funds or firm commitments for funds, are sufficient in Lender's reasonable determination to complete development of the Project and satisfy all of the covenants contained in the Loan Documents and the Regulatory Agreement. G. Borrower has submitted evidence reasonably satisfactory to Lender of firm rehabilitation and/or mortgage financing commitments. PROJECT DEVELOPMENT 9. DEVELOPMENT OBLIGATIONS. Borrower must develop the Project in accordance with the Plans and Specifications and that Project description attached as Exhibit D, as the Plans and Specifications and Project description may be modified pursuant to this Agreement. 10. CHANGES IN FINANCING. Borrower must promptly inform Lender of any changes in the amount, terms, or sources of financing or funding for the Project. 11. COMMENCEMENT OF REHABILITATION. Borrower must commence rehabilitation of the Project by the commencement date specified in the Schedule (the "Commencement Date"). For purposes of this Agreement, the date rehabilitation is commenced shall be considered the date that Borrower's contractor has begun substantial demolition or rehabilitation work on the Project. 12. COMPLETION OF REHABILITATION. Following commencement of rehabilitation, Borrower must diligently prosecute the rehabilitation of the Project to completion as evidenced by the issuance of a certificate of occupancy, or its substantial equivalent, such as the issuance of a notice of completion and final signed -off building permits, by the City of National City. Borrower must complete rehabilitation of the Project by that completion date specified in the Schedule (the "Completion Date"). 13. SCHEDULING AND EXTENSIONS OF TIME. Borrower is responsible for coordinating and scheduling the work to be performed so that commencement and completion of 496 of 585 Attachment No. 2 Rehabilitation of the Project will take place in conformance with this Agreement. Lender may extend the time for commencement or completion in its sole discretion in writing if it determines that delay in the progress of work is not attributable to the negligence of Borrower and that such delay was due to causes beyond the control of Borrower. Any time extension granted to Borrower to enable Borrower to complete the work shall not constitute a waiver of any other rights Lender has under this Agreement. 14. CONSTRUCTION BONDS. Prior to commencement of rehabilitation of the Project, Borrower shall procure and deliver to Lender copies of a labor and material (payment) bond and a performance bond, or a dual bond which covers both payment and performance obligations, with respect to the rehabilitation of the Project in a penal sum each of not less than one hundred percent (100%) of the scheduled cost of rehabilitation. Such bonds must be issued by a company which is authorized to transact surety insurance in California and which has assets exceeding its liabilities in an amount equal to or in excess of the bond amount. The bonds shall name Lender as a co -obligee or assignee. Borrower shall record the payment bond with the San Diego County Recorder, and shall submit proof of recordation to Lender. In lieu of such bonds, a letter of credit in the sole name and possession of Lender in the penal amount and in a form acceptable to Lender may be substituted. 15. CONTRACTS AND SUBCONTRACTS. All rehabilitation work and professional services for the Project must be performed by persons or entities licensed or otherwise authorized to perform the applicable rehabilitation work or service in the State of California. Each contractor, subcontractor, and professional service provider doing work on the Project must have a current City of National City Business Tax Certificate, if required under local law. All contracts entered into for Project development must be the result of either competitive or negotiated bids. For negotiated bids, the contractor shall be selected through a competitive request for qualification process or other process reasonably satisfactory to Lender. Borrower represents that it has submitted to Lender copies of all construction, consultant and professional services contracts and subcontracts entered into to date for predevelopment or development work on the Project. As a precondition to closing the Loan, the general contractor for the Project (if a general construction contract for the Project has been executed), as well as any other construction contractors or subcontractors that might be designated by Lender, must execute a Construction Contract Addendum, a form of which is attached to this Agreement as Exhibit G. Borrower must submit to Lender all future professional services contracts and construction contracts for predevelopment or development work on the Project, as well as any amendments to said contracts. Lender shall have the right to review and approve any such contract or amendment prior to execution, if the maximum contract amount exceeds $5,000. As a precondition to approval, the general contractor, as well as any other construction contractors or subcontractors that might be designated by Lender, must execute a Construction Contract Addendum. Lender may also require that Borrower assign the benefits of a construction or consultant contract to Lender as a condition of approval. If Lender has not responded to a submission of a contract or amendment draft by Borrower within 15 business days of receipt by Lender, the contract or amendment shall be deemed approved by Lender. 16. ASSIGNMENT OF DEVELOPMENT RIGHTS. Subject to the rights of senior lienholders, and to the extent permitted by federal or state law, as additional security for the performance of Borrower's obligations under the Loan Documents, Borrower irrevocably assigns to Lender, and grants to Lender a security interest in, Borrower's interests in and rights to the following: all governmental permits, maps, and approvals it has obtained or will obtain for development of the Project; all construction contracts and subcontracts and all supply contracts and subcontracts now or 497 of 585 Attachment No. 2 hereafter entered into for the Project; all contracts with architects, landscape architects, planners, geologists, surveyors, engineers, economists, or other development consultants now or hereafter entered into for the Project; all plans, specifications, drawings, data, and studies produced by these architects and development consultants; all private and governmental grants, subsidies, loans, and other financing for development of the Project, including any syndication proceeds, now or hereafter held by Borrower; and all reserves, deferred payments, deposits, refunds, cost savings, and payments relating to development of the Project. Borrower shall ensure that the third parties to the contracts referenced above for Project work consent to the assignment of these contracts to Lender. This assignment shall become effective upon an Event of Default that has not been cured in the manner and time provided herein and express written notice to Borrower thereafter that Lender intends to exercise the assignment. Lender shall not have any obligation under any assigned contracts or agreements until it expressly agrees in writing. Upon an Event of Default that has not been cured pursuant to this Agreement and notwithstanding any other provisions of the Loan Documents, Lender may use any of the foregoing assigned permits, contracts, agreements, plans, specifications, data, studies, funds, and accounts for any purpose for which Borrower could have used them under the Loan Documents or otherwise for development of the Project. Upon an Event of Default which has not been cured pursuant to this Agreement, Lender shall have the right, in its discretion, to enter upon and take possession of the Property, remove Borrower and its agents from the Property, and take any actions necessary in its judgment to complete development of the Project. This includes employing such contractors, subcontractors, agents, consultants, engineers, and architects as required to complete the rehabilitation, making changes in plans, specifications, work, or materials, entering into, modifying, or terminating any contractual arrangements, and/or using any funds or funding commitments held by Borrower, subject to Lender's right at any time to discontinue work without liability. If Lender elects to complete rehabilitation of the Project, Lender will not assume any liability to Borrower or to any other person for completing the Project, or for the manner or quality of rehabilitation of the Project, and Borrower expressly waives such liability. Borrower irrevocably appoints Lender as its attorney -in -fact, with full power of substitution, to complete the Project in Borrower's name, or Lender may elect to complete development in its own name, all effective upon an Event of Default and failure to cure. 17. PLANS AND SPECIFICATIONS. No later than the date set forth in the Schedule, Borrower must submit to Lender for its review and approval the Plans and Specifications. Borrower must develop the Project in conformance with the approved Plans and Specifications and any modifications authorized under this Agreement. Borrower understands and agrees that Lender approval of any Plans and Specifications pursuant to this section is approval only for purposes of administration of this Loan, and should not be considered in any way an issuance of a building permit or other permit, or any other approval required pursuant to the regulatory authority of the City. 18. QUALITY OF WORK. Borrower shall rehabilitate the Project in conformance with general industry standards and must employ building materials of a quality suitable for the requirements of the Project. Borrower shall develop the Project in full conformance with applicable local, state, and federal statutes, regulations, and building and housing codes. 498 of 585 Attachment No. 2 19. CHANGES IN WORK. Borrower must obtain Lender's written approval of a written change order before any of the following changes, additions, or deletions in Project work may be performed: (1) any change that exceeds twenty-five thousand dollars ($25,000); or (2) any set of changes that cumulatively exceeds fifty thousand dollars ($50,000) or 10% of the Loan amount, whichever is less; or (3) any substantial change in building materials or equipment, specifications, or the architectural or structural design of the Project as called for in the Plans and Specifications. If Lender has not responded to a written request for a change order by Borrower within 8 City business days of receipt of such request by Lender, such request shall be deemed approved by Lender. Consent to any additions, changes, or deletions to the work shall not release Borrower from any other obligations in the Loan Documents, or release Borrower or its surety from any surety bond. 20. RECORDS. Borrower shall maintain records which fully and accurately show the date, amount, purpose, and payee of all expenditures for rehabilitation of the Project, and shall keep all estimates, invoices, receipts, and other documents related to Loan fund expenditures for at least five years after completion of rehabilitation of the Project as evidenced by the issuance of a Certificate of Satisfaction of Development Obligations. Borrower shall make records available for review by Lender's representatives. Records shall be kept accurate and up-to-date. Lender shall notify Borrower of any records it deems in its reasonable judgment to be insufficient. Borrower shall have 8 City business days from such notice to correct any specified deficiency in the records, or, if more than 8 City business days shall be reasonably necessary to correct the deficiency, Borrower shall begin to correct the deficiency within 8 City business days and correct the deficiency as soon as reasonably possible. 21. SITE INSPECTIONS. Borrower, through its staff or its development representative, shall permit and facilitate observation and inspection of work at the Project site by Lender's authorized representatives during normal business hours. 22. AUDITS. Borrower must make available at Borrower's or its development representative's office for examination at reasonable intervals and during normal business hours to Lender's representatives all books, accounts, reports, files, and other papers or property with respect to all matters covered by these Loan Documents, and shall permit these representatives to audit, examine, and make copies, excerpts or transcripts from such records. Lender's representatives may make audits of any conditions relating to this Loan. 23. PROJECT MONITORING AND EVALUATION. Borrower shall maintain and submit records to Lender within ten business days of Lender's request which clearly document Borrower's performance under each requirement of the Loan Documents. Borrower shall supply promptly, upon Lender's reasonable request, any information or documentation pertaining to the Project and must cooperate with Lender's representatives on matters related to Project monitoring and evaluation. Commencing upon completion of rehabilitation, Borrower shall pay to the Lender an annual monitoring fee ("Loan Monitoring Fee"), as determined by the Lender in schedules printed by the Lender from time to time. The Loan Monitoring Fee shall be subject to revision annually. The Loan Monitoring Fee shall be paid to the Lender annually within ten (10) days after the Lender provides a written invoice to Borrower for the same. Failure to timely pay the Loan Monitoring Fee shall constitute a material default under this Agreement and the Regulatory Agreement. The Loan Monitoring Fee shall be paid to the Lender as a consideration for the lending of funds by the Lender to the Borrower. 24. NO LENDER REVIEW RESPONSIBILITIES. Lender shall not be responsible for Borrower's conduct in connection with the Project, including, but not limited to, the quality and suitability of the Plans and Specifications, the supervision of the rehabilitation work, and the 499 of 585 Attachment No. 2 qualifications, financial conditions, and performance of all architects, engineers, contractors, subcontractors, suppliers, consultants, and property managers. Lender is under no duty to review the Plans and Specifications or to inspect rehabilitation of the Project. Any review or inspection undertaken by Lender for the Project is solely for the purpose of determining whether Borrower is properly discharging its obligations to Lender, and should not be relied upon by Borrower or by any third parties, including homebuyers, as a warranty or representation by Lender as to the quality of the design or rehabilitation of the Project. 25. ENCUMBRANCE OF PROPERTY. Borrower may not engage in any financing or any other transaction creating any security interest or other encumbrance or lien upon the Property, whether by express agreement or operation of law, or allow any encumbrance or lien to be made on or placed on the Property prior to completion of Project development, except with the prior written consent of Lender or as otherwise specifically authorized under this Agreement. Borrower shall notify Lender in writing in advance of any financing secured by any deed of trust, mortgage, or other similar lien instrument that it proposes to enter into with respect to the Project or Property, or any encumbrance or lien that has been attached to the Property, whether voluntary or involuntary. Lender reserves the right to condition its consent to any other financing on the use of the proceeds of such financing to pay any loan fee due and unpaid to Lender in connection with this Loan. Notwithstanding the foregoing, Borrower shall have the right to refinance the senior loan in accordance with the terms of the Regulatory Agreement. 26. TRANSFER OF PROPERTY AND PROJECT. Borrower represents that it has not made, and agrees it shall not make or permit any sale, agreement to sell, assignment, conveyance, lease, further encumbrance, or other transfer of this Agreement or any part of the Project or the Property (except for the rental of Project Units to tenant households as set forth in the Regulatory Agreement), including the sale of any general or limited partnership interests, the removal of any general partner, or any substantial change in Project control (collectively referred to as "Transfers"), without the prior written consent of Lender in its sole discretion. Notwithstanding the foregoing, the following transactions are hereby deemed to be expressly permitted under the Loan Documents: (i) the transfer by the Limited Partners of their interests in the Borrower to any other entity which is affiliate of the Limited Partners or which is directly or indirectly controlled by WNC & Associates, Inc., or an affiliate thereof, (ii) a change in the beneficial ownership of the Limited Partners, so long as such entity remains controlled by WNC & Associates, Inc., or an affiliate thereof or an affiliate thereof, (ii) the pledge and encumbrance of the interests of the Limited Partners to or for the benefit of any financial institution which enables the Limited Partners to make their capital contributions to Borrower, (iii) the removal of any general partner of the Borrower by Limited Partners pursuant to the terms of the Partnership Agreement and the admission of a replacement general partner acceptable to Lender in its reasonable discretion, (iv) issuance of partnership interests in Borrower equal to 99.99% of the profits, losses credits, distributions and other interest in Borrower to the Limited Partners of Borrower and (v) the transfer of limited partnership interests in Borrower to the General Partner or an affiliate thereof or the transfer of the Project to the General Partner or an affiliate thereof following the expiration of the tax credit compliance period. 27. PROJECT SYNDICATION. The Lender hereby approves the execution of the Partnership Agreement pursuant to which Limited Partners become the limited partners of the Borrower. The Project may not be further syndicated without the prior review by Lender of all documents governing the syndication and written consent by Lender to the terms of the syndication. For purposes of this section, "syndication" means the sale of equity shares or interests in the Property or the Project to investors, including without limitation investors who are seeking low income housing tax 500 of 585 Attachment No. 2 credits or historic rehabilitation tax credits. In the event that Borrower intends to syndicate the Project, Borrower must submit to Lender at least 30 calendar days prior to syndication closing, for review and approval by Lender, a proposed syndication budget identifying the proposed uses of all syndication proceeds. Such uses may include direct Project development and operation costs, reasonable fees for structuring and marketing the syndication, and reasonable reserves as required by debt or equity financing sources or as otherwise approved by Lender. All net syndication proceeds, leveraged funds, and other money received by Borrower or an affiliate in connection with the Project which are not required to meet the financial obligations set forth in the Budget, the Partnership Agreement, or the approved syndication budget must be used to repay the Loan. Such funds shall be deposited with Lender within 30 days of receipt by Borrower or Borrower's affiliate. Lender reserves the right to earmark the use of any fee received by Borrower or Borrower's affiliate for the syndication as a condition of its consent to the syndication. 28. MECHANICS LIENS AND STOP NOTICES. If any claim of mechanics lien is filed against the Property or a stop notice affecting the Loan is served on Lender, Borrower shall, within 20 days of such filing or service, either pay and fully discharge the lien or stop notice, obtain an unconditional release of the lien or stop notice by recording a release bond, delivering to Lender a surety bond in sufficient form and amount, or provide Lender with other assurance reasonably satisfactory to Lender that the lien or stop notice will be paid or discharged. If Borrower fails to discharge any such lien, encumbrance, charge, or claim, then Lender may, but shall be under no obligation to, discharge the same at Borrower's expense. Alternatively, Lender may require Borrower to immediately deposit with Lender the amount necessary to satisfy such lien or claim and any costs, pending resolution thereof. Lender may use such deposit to satisfy any claim or lien that is adversely determined against Borrower. Borrower shall file a valid notice of cessation or notice of completion upon cessation of rehabilitation on the Project for a continuous period of 30 days or more, and shall take all other reasonable steps to forestall the assertion of claims of lien against the Property. Borrower authorizes Lender, but without any obligation, to record any notices of completion or cessation of labor, or any other notice that Lender deems necessary or desirable to protect its interest in the Project and Property; provided, however, that Lender shall exercise this right only if and when Borrower fails to take action as required. 29. DISABLED ACCESS. Borrower shall rehabilitate the Project and maintain the Property in compliance with all applicable federal, state, and local requirements for access for disabled persons. 30. LEAD -BASED PAINT. Borrower and its contractors and subcontractors shall not use lead -based paint in the rehabilitation of the Project or maintenance of Project Units. Borrower shall insert this provision in all contracts and subcontracts for work performed on the Project which involve the application of paint. Borrower shall ensure, from the date of completion through the date the affordability period terminates, that the Project is in compliance with the lead based paint provisions contained in the Lead -Based Paint Poisoning Act (42 USC Section 4821 et seq.), 24 CFR Part 35, and 24 CFR Section 982.401(j). Borrower shall be responsible for all testing and abatement activity. 31. CERTIFICATE OF SATISFACTION OF DEVELOPMENT OBLIGATIONS. Upon completion of rehabilitation of the Project, Borrower shall submit a certification from the Project architect stating that the improvements to the Property have been made in accordance with the Plans and Specifications. Upon (1) submission of this architect's certification, (2) a determination of final Project costs, (3) a determination by Lender that Borrower has completed the Project in conformance 501 of 585 Attachment No. 2 with industry standards and the Plans and Specifications, (4) a determination by Lender in Lender's reasonable judgment that Borrower has satisfied all of Borrower's development obligations under this Agreement, and (5) completion of a cost certification of the Project signed under penalty of perjury, Lender shall furnish Borrower, within 15 calendar days of a written request by Borrower, with a Certificate of Satisfaction of Development Obligations for the full Project or the applicable phase of the Project. If Lender determines that issuance of said Certificate is unwarranted, it shall provide Borrower with a written statement within the above time frame indicating in what respects Borrower is deficient, and what measures Borrower will need to take or what standards it will need to meet in order to obtain the Certificate. If Borrower subsequently takes the specified measures or meets the specified standards, and is not otherwise in default under the Loan Documents, Lender shall then deliver a Certificate to Borrower. 32. OPERATION OF PROJECT. Borrower and its agents shall diligently operate and manage Project Units after Project completion in full conformance with the covenants contained in the Regulatory Agreement, which are intended to run with the land and bind all successors -in -interest to the Property for the full term of the Regulatory Agreement, and with the terms of the Final Management Plan as defined in the Regulatory Agreement. 33. NONDISCRIMINATION. Borrower may not discriminate or segregate in the use, enjoyment, occupancy, conveyance, lease, sublease, or rental of any part of the Property on the basis of race, color, ancestry, national origin, religion, sex, sexual preference, age, marital status, family status, source of income, physical or mental disability, Acquired Immune Deficiency Syndrome (AIDS) or AIDS -related conditions, or any other arbitrary basis. Borrower must otherwise comply with all applicable local, state and federal fair housing laws. Specifically, Borrower must ensure that the Project is conducted and administered in conformance with Title VI of the federal Civil Rights Act of 1964 and the federal Fair Housing Act, and implementing regulations. 34. FEES, TAXES, AND OTHER LEVIES. Borrower is responsible for payment of all fees, assessments, taxes, charges, liens and levies imposed by any public authority or utility company with respect to the Property or the Project, and shall pay such charges prior to delinquency. However, Borrower shall not be required to discharge any such charge so long as (a) the legality thereof is being contested in good faith and by appropriate proceedings, and (b) Borrower maintains reserves adequate to pay any contested liabilities. 35. DAMAGE TO PROPERTY. If any building or improvements erected by Borrower on the Property is extensively damaged or destroyed, and the cost of restoring the building or improvements is covered by insurance proceeds, Borrower must, at its own cost and expense, repair or restore said buildings and improvements consistent with the original Plans and Specifications (for purposes hereof, a loss shall be considered "covered by insurance proceeds" notwithstanding any policy deductible or self -insured retention). Such work must be commenced within 180 days after the damage or loss occurs and shall be complete within one year thereafter. All insurance proceeds collected for such damage or destruction and other funds available to Borrower shall be applied to the cost of such repairs or restoration. 36. RELOCATION. The parties anticipate that any relocation of tenants will be of a temporary nature. To the extent that acquisition or rehabilitation of the Property results in the permanent or temporary displacement of residential tenants, homeowners, or businesses, then Borrower shall comply with all applicable local, state, and federal statutes and regulations with respect to relocation planning, advisory assistance, and payment of monetary benefits, including: the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. Section 4601, et 502 of 585 Attachment No. 2 seq.), and implementing regulations at 49 C.F.R. Part 24; Section 104(d) of the Housing and Community Development Act of 1974 and implementing regulations at 24 C.F.R. Part 42; 24 C.F.R. Section 570.606; and California Government Code Section 7260 et seq. and implementing regulations at 25 California Code of Regulations Section 6000 et seq. Borrower shall be solely responsible for payment of any relocation benefits to any displaced persons and any other obligations associated with complying with such relocation laws. Borrower shall indemnify, defend (with counsel reasonably chosen by Lender), and hold harmless Lender against all claims which arise out of relocation obligations to residential tenants, homeowners, or businesses permanently or temporarily displaced by the acquisition or rehabilitation of the Property. EMPLOYMENT AND CONTRACTING 37. NONDISCRIMINATION. Borrower may not discriminate against any employee or applicant for employment on the basis of race, color, religion, sex, sexual preference, national origin, AIDS or AIDS -related conditions, or disability in any phase of employment during rehabilitation. Borrower agrees to post in conspicuous places available to all employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 38. COMPLIANCE WITH LAWS. Borrower shall carry out the design, rehabilitation and operation of the Project in conformity with all applicable laws, including all applicable state labor standards; the Lender zoning and development standards, building, plumbing, mechanical and electrical codes, and all other provisions of the Lender's Municipal Code, and all applicable disabled and handicapped access requirements, including without limitation the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq., Government Code Section 4450, et seq., Government Code Section 11135, et seq., the Unruh Civil Rights Act, Civil Code Section 51, et seq., and the California Building Standards Code, Health and Safety Code Section 18900, et seq. 39. REPORTING. Borrower must submit annually, no later than June 30th, of each year during the term of this Agreement, for the calendar year ending the immediately previous December 31st, with such records and reports as are required and are requested by the Lender. The records and reports include (to the extent applicable), but are not limited to the following: (1) Eligible tenant information, including yearly income verifications; (2) Information on rents and occupancy of the Project Units; (3) On -site inspection results; (4) Insurance policies and notices; (5) Equal Employment Opportunity and Fair Housing records; (6) Labor costs and records; (7) Audited income and expense statement, balance sheet and statement of cash flows for Borrower; 503 of 585 Attachment No. 2 (8) A Management Plan for the calendar year in which the report is prepared showing anticipated rental income, other income, expenses, anticipated repairs and replacements to the Project, timing of such repairs and replacements, insurance maintained on behalf of the Project, and such other matters as Lender shall require, in the Lender's sole discretion; (9) Federal and State income tax returns for the calendar year, ending on the preceding December 31 st; (10) Annual budget of reserves for repair and replacement; (11) Annual certification and representation regarding status of all loans, encumbrances and taxes; (12) Annual statement regarding condition of the Property disclosing any known defects; (13) Available Cash Flow computation on the approved Lender form; (14) A report or reports, certifying compliance with the terms and provisions of the Section 3 requirements; and (15) Such other and further information and records as the Lender shall request in writing from Borrower. Time is of the essence in supplying each and every report required to be supplied to Lender. The parties agree that a fee of $25.00 per day shall be paid by Borrower to Lender for each day that each report is delinquent. The parties agree that multiple fees may be charged at any one time, depending upon the number of reports and/or information that is delinquent. The parties agree that a fee of $25.00 per day, per report and/or information is a reasonable estimation of the damages that will accrue to Lender as a result of the failure of Borrower to timely submit the required information and/or reports and that said fees shall be treated as liquidated damages by the parties, in anticipation of the damages that will be incurred by Lender as a result of a breach by Borrower. The parties further agree that it would be difficult, if not impossible, to determine the exact actual amount of damages suffered by Lender in the event of a breach by Borrower in the reporting requirements of this Agreement. Notwithstanding the foregoing or anything to the contrary contained herein, Lender shall give Borrower prior written notice of any report and/or information that Borrower has failed to provide Lender and Borrower shall have thirty (30) days to provide such report and/or information to Lender prior to the assessment of any liquidated damages. 504 of 585 Attachment No. 2 INDEMNITY AND INSURANCE 40. INSURANCE COVERAGE. Borrower must have or cause to have in full force and effect the insurance coverage specified in Exhibit I to this Agreement. In addition, Borrower shall ensure that the general contractor for the Project maintains the insurance coverage specified in Exhibit I for the duration of Project rehabilitation. 41. INSURANCE ADVANCES. In the event Borrower fails to maintain the full insurance coverage required by this Agreement, Lender, after at least seven business days prior written notice to Borrower, may, but shall be under no obligation to, take out the required insurance policies and/or pay the premiums on such policies. Any amount advanced by Lender, together with interest from the date of such advance at the same rate of interest specified in the Note (unless payment of such an interest rate would be contrary to applicable law, in which case interest shall accrue at the highest rate then allowed by applicable law), shall become payable by Borrower to Lender, subject to all the terms and conditions of this Agreement, and shall be secured by the Deed of Trust. 42. TITLE AND TITLE INSURANCE. Borrower warrants that it shall obtain fee simple absolute title to the Property in a good and marketable condition concurrently with closing. As a condition of the Loan, Borrower shall obtain at Borrower's sole expense an ALTA Loan Policy of title insurance insuring Lender, with liability not less than the principal amount of the Loan, issued by an insurer satisfactory to Lender, excepting only such defects, liens, encumbrances, and exceptions as are reasonably approved by Lender, and containing such endorsements as Lender may require. 43. NON -LIABILITY OF OFFICIALS, EMPLOYEES AND AGENTS. No member, official, officer, director, employee, or agent of the Lender or the City shall be personally liable to Borrower for any obligation created under the terms of these Loan Documents except in the case of actual fraud or willful misconduct by such person. 44. INDEMNITY. Notwithstanding the insurance coverage required herein, Borrower hereby indemnifies and holds the Lender, the City, its members, officials, officers, directors, employees, and agents (collectively, the "Indemnified Parties") harmless from any losses, damages, liabilities, claims, demands, judgments, actions, court costs, and legal or other expenses (including reasonable attorneys' fees) which an Indemnified Party may incur as a result of (1) the making of this Loan to Borrower (other than losses resulting from a finding that the Loan is illegal or unauthorized); (2) Borrower's failure to perform any of its obligations as and when required by the Loan Documents; (3) a failure of any of Borrower's representations or warranties to be true and complete in any material respect; or (4) any act or omission by Borrower or any contractor, subcontractor, architect, engineer, consultant or supplier with respect to the Project or the Property, except to the extent that the loss is caused by the negligence or willful misconduct of the Indemnified Party. Borrower shall pay immediately upon the Indemnified Parry's demand any amounts owing under this indemnity provision. The duty of Borrower to indemnify includes the duty to defend the Indemnified Party in any court action, administrative action, or other proceeding brought by any third party arising from the Project or the Property with counsel reasonably acceptable to the Indemnified Party. Borrower's duty to indemnify the Indemnified Parties shall survive the term of the Loan and the reconveyance of the Deed of Trust. 505 of 585 Attachment No. 2 HAZARDOUS MATERIALS 45. REPRESENTATIONS AND WARRANTIES. After reasonable investigation and inquiry, Borrower represents and warrants to the best of its knowledge, as of the date of this Agreement and except as previously disclosed to and acknowledged in writing by Lender or as disclosed in connection with the NEPA approval of the Project, based on environmental audit(s) performed on the Property, that (a) the Property are not and have not been a site for the use, generation, manufacture, transportation, storage, or disposal of Hazardous Materials; (b) the Property are in compliance with all Hazardous Materials Laws; (c) there are no claims or actions pending or threatened with respect to the Property by any governmental entity or agency or any other person relating to Hazardous Materials; and (d) there has been no release or threatened release of any Hazardous Materials on, under, or near the Property (including in the soil, surface water, or groundwater under the Property) or any other occurrences or conditions on the Property or on any other real property that could cause any part of the Property to be classified as a "hazardous waste property" or as a "border zone property" under California Health and Safety Code Sections 25220, et seq., or regulations adopted therewith. 46. NOTIFICATION TO LENDER. Borrower shall immediately notify Lender in writing of: (a) the discovery of any concentration or amount of Hazardous Materials on or under the Property requiring notice to be given to any governmental agency under Hazardous Materials Laws; (b) any knowledge by Borrower that the Property does not comply with any Hazardous Materials Laws; (c) the receipt by Borrower of written notice of any Hazardous Materials claims; and (d) the discovery by Borrower of any occurrence or condition on the Property or on any real property located within 2,000 feet of the Property that could cause any part of the Property to be designated as a "hazardous waste property" or as a "border zone property" under California Health and Safety Code Sections 25220, et seq., or regulations adopted therewith. 47. USE AND OPERATION OF PROPERTY. Neither Borrower, nor any agent, employee, or contractor of Borrower, nor any authorized user of the Property may use the Property or allow the Property to be used for the generation, manufacture, storage, disposal, or release of Hazardous Materials. Borrower must comply and cause the Project to comply with Hazardous Materials Laws not more than 30 days after Borrower's receipt of written notice by Lender to do so. 48. REMEDIAL ACTIONS. If Borrower has actual knowledge of the presence of any Hazardous Materials on or under the Property, Borrower shall immediately take at no cost to Lender, all handling, treatment, removal, storage, decontamination, cleanup, transport, disposal or other remedial action required by Hazardous Materials Laws or by any orders or requests of any governmental agency or any judgment, consent decree, settlement or compromise with respect to any Hazardous Materials claims. The foregoing shall be subject to Borrower's right of contest below. 49. RIGHT OF CONTEST. Borrower may contest in good faith any claim, demand, levy or assessment under Hazardous Materials Laws if: (a) the contest is based on a material question of law or fact raised by Borrower in good faith, (b) Borrower promptly commences and thereafter diligently pursues the contest, (c) the contest will not materially impair the taking of any remedial action with respect to such claim, demand, levy or assessment, and (d) Borrower demonstrates to Lender's reasonable satisfaction that Borrower has the financial capability to undertake and pay for such contest and any remedial action then reasonably necessary. No Event of Default shall be deemed to exist with respect to any claim, demand, levy or attachment being contested by Borrower under this section. 506 of 585 Attachment No. 2 50. ENVIRONMENTAL INDEMNITY. Borrower shall defend, indemnify, and hold Lender, its members, officials, directors, employees or agents, harmless against any claims, demands, administrative actions, litigation, liabilities, losses, damages, response costs, and penalties, including costs of legal proceedings and attorney's fees, that Lender may incur as a result of any inaccuracy or breach of any representation, warranty, agreement, or covenant contained in this Agreement with respect to Hazardous Materials, or as a consequence of any use, generation, manufacture, storage, release, or disposal (whether or not Borrower knew of same) of any Hazardous Materials occurring as a result of Borrower's use or occupancy of the Property. DEFAULT AND REMEDIES 51. EVENTS OF DEFAULT BY BORROWER. The occurrence of any of the following events shall be an "Event of Default" by Borrower under this Agreement: A. Monetary. (1) Borrower's failure to pay when due any sums payable under the Loan Documents, including failure to reimburse Lender for any advances made by Lender under this Agreement or the Deed of Trust; (2) Borrower's use of Loan funds for costs other than Eligible Costs or for uses inconsistent with other terms and restrictions in the Loan Documents; (3) Borrower's failure to obtain and maintain the insurance coverage required under this Agreement; (4) Borrower's failure to make any other payment or assessment due under the Loan Documents; or (5) the disbursement, release, hypothecation or encumbrance of all or any portion of the Loan Funding Reserve without the written consent of the Lender; B. Rehabilitation. (1) Any changes in the work of rehabilitation specified in the approved Plans and Specifications without Lender's prior written consent if such consent is required under this Agreement; (2) Borrower's use of defective or unauthorized materials or defective workmanship in rehabilitating the Project; (3) Borrower's failure to commence or complete Project rehabilitation, without proper justification under the enforced delay provision of this Agreement, according to the Commencement Date and Completion Date specified in this Agreement; (4) a substantial cessation of rehabilitation prior to Project completion for a period of more than 30 continuous calendar days; (5) the filing of any claim of lien against the Property or service on Lender of any stop notice relating to the Loan, and the continuance of the claim of lien or stop notice for 20 days after such filing or service without payment, discharge, or satisfaction as provided for in this Agreement; (6) Borrower's failure to remedy any material deficiencies in recordkeeping or failure to provide records to Lender upon Lender's request; or (7) Borrower's failure to substantially comply with any federal, state, or local laws or Lender policies governing rehabilitation, including but not limited to provisions of this Agreement pertaining to Project employment, disabled access, lead paint, and Hazardous Materials; C. Operation. (1) Rental of Project Units to households whose incomes do not qualify them for occupancy, or any failure of Borrower or Borrower's agent to take adequate steps to certify incomes; (2) overcharging in rental of Project Units by Borrower or Borrower's agent; (3) Borrower's or Borrower's agent's failure to comply with the Regulatory Agreement or the Final Management Plan as defined in the Regulatory Agreement; (4) discrimination by Borrower or Borrower's agent on the basis of characteristics prohibited by this Agreement or applicable law; (5) the imposition of any encumbrances or liens on the Property without Lender's prior written approval, except as otherwise allowed under this Agreement, or that have the effect of reducing the priority of or invalidating the Deed 507 of 585 Attachment No. 2 of Trust; (6) except as set forth in Section 25, the Transfer of the Property, the Project, or this Agreement or the assignment of any interest in any of the Loan Documents or the Regulatory Agreement (whether by assignment or novation) without Lender's prior written consent; (7) conversion of Project Units to condominium or cooperative ownership without Lender's prior written consent and except as otherwise permitted under this Agreement; (8) Borrower's or Borrower's agent's failure to substantially comply with any federal, state, or local laws or Lender policies governing the operation and management of housing, including without limitation provisions of this Agreement and the Regulatory Agreement pertaining to maintenance and security, disabled access, lead paint, Hazardous Materials, conflicts of interest, and political activities; or (9) except to effectuate transferes permitted pursuant to Section 25 and or make ministerial changes or other modifications that will not adversely impact the Lender to the Borrower's obligations hereunder, the amendment, modification, restatement, revocation or rescission of the Borrower's LP-1 or the Partnership Agreement; D. General performance of Debt obligations. Any failure to perform, in a timely manner, any agreement or covenant of the Borrower under any of the Loan Documents, the Regulatory Agreement or any notes, loans and deeds of trust that are senior and/or junior to the Deed of Trust, subject to all applicable notice and cure periods; E. General performance of other obligations. Any breach by Borrower or Borrower's agents of any material obligations of Borrower imposed by any other agreements with respect to the financing, development, or operation of the Project or the Property, whether or not Lender is a party to such agreement; F. Representations and warranties. A determination by Lender in its reasonable judgment that any of Borrower's representations or warranties made in the Loan Documents, any statements made to Lender by Borrower, or any certificates, documents, or schedules supplied to Lender by Borrower were untrue in any material respect when made, or that Borrower concealed or failed to disclose a material fact from Lender; G. Damage to Property. Material damage or destruction to the Property, if Borrower does not take steps to reconstruct the Property as required herein; H. Bankruptcy, dissolution, and insolvency. Borrower's or Borrower's general partner's (1) filing for bankruptcy, dissolution, or reorganization, or failure to obtain a full dismissal of any involuntary filing brought by another party under bankruptcy or similar laws before the earlier of final relief or 60 days after filing; (2) making a general assignment for the benefit of creditors; (3) applying for the appointment of a receiver, trustee, custodian, or liquidator, or failure to obtain a full dismissal of any such involuntary application brought by another party before the earlier of final relief or 60 days after the filing; (4) insolvency; or (5) failure, inability or admission in writing of its inability to pay its debts as they become due. 52. NOTICE OF BORROWER'S DEFAULT AND OPPORTUNITY TO CURE. Lender shall give written notice to Borrower and the Limited Partners of any Event of Default on the part of Borrower. Said notice shall specify the nature of the act, omission, or deficiency giving rise to the Event of Default. In addition, if the Event of Default is curable, does not pertain to a failure to comply with the Commencement Date and/or the Completion Date, and does not give rise to an imminent danger to health or safety, then the notice shall also specify the action required to cure the 508 of 585 Attachment No. 2 default. If the default is not cured within 30 calendar days or the Borrower does not commence such cure within 30 calendar days and diligently pursue the cure to completion within a reasonable time thereafter, the Lender may proceed with all of its rights and remedies under the terms of the Loan Documents, Regulatory Agreement or at law. Limited Partners shall have the same cure rights as the Borrower hereunder. 53. LENDER'S REMEDIES. Upon any uncured Event of Default as provided for above, Lender may, in addition to other rights and remedies permitted by the Loan Documents, Regulatory Agreement or applicable law, proceed with any or all of the following remedies in any order or combination Lender may choose in its sole discretion: B. Bring an action for equitable relief (1) seeking the specific performance by Borrower of the terms and conditions of the Loan Documents, and/or (2) enjoining, abating, or preventing any violation of said terms and conditions, and/or (3) seeking declaratory relief; C. Accelerate the Loan, and demand immediate full payment of the principal amount outstanding and all accrued interest under the Note, as well as any other funds advanced to Borrower by Lender under the Loan Documents, including reasonable administrative costs, immediately due and payable; D. Enter the Property and take any actions necessary in its reasonable judgment to complete Project rehabilitation as permitted under this Agreement, including without limitation (1) making changes in the Plans and Specifications or other work or materials for the Project, (2) entering into, modifying, or terminating any contractual arrangements (subject to Lender's right at any time to discontinue work without liability), or (3) taking any remedial actions with respect to Hazardous Materials that Lender reasonably deems necessary to comply with Hazardous Materials Laws or to render the Property suitable for occupancy; E. Seek appointment from a court of competent jurisdiction of a receiver with the authority to complete rehabilitation as needed to preserve Lender's interest in seeing the Project developed in a timely manner, including the authority to take any remedial actions with respect to Hazardous Materials that Lender or the receiver deems necessary to comply with Hazardous Materials Laws or to render the Property suitable for occupancy; F. Order immediate stoppage of rehabilitation and demand that any condition leading to the Event of Default be corrected before rehabilitation may continue; G. Enter upon, take possession of, and manage the Property, either in person, by agent, or by a receiver appointed by a court, and collect rents and other amounts specified in the assignment of rents in the Deed of Trust and apply them to operate the Property or to pay off the Loan or any advances made under the Loan Documents, as provided for in the Deed of Trust; H. Initiate and pursue any private and/or judicial foreclosure action allowed under applicable law and the power of sale provision in the Deed of Trust; 509 of 585 Attachment No. 2 I. With respect to defaults under Hazardous Materials provisions herein, pursue the rights and remedies permitted under California Civil Code Section 2929.5, and California Code of Civil Procedure Sections 564, 726.5, and 736; or J. Pursue any other remedy allowed at law or in equity. 54. LENDER'S DEFAULT AND BORROWER'S REMEDIES. Borrower shall give written notice to Lender of any Event of Default on the part of Lender. Said notice shall specify the nature of the act, omission, or deficiency giving rise to the Event of Default. In addition, if the Event of Default is curable and does not give rise to an imminent danger to health or safety, the notice shall also specify the action required to cure the default, and a reasonable date, which shall not be less than 30 calendar days from the mailing of the notice, by which Lender must take or commence such action to cure. If the notice specifies only a commencement date for the cure, Lender shall commence such cure within the specified time and shall diligently pursue the cure to completion within a reasonable time thereafter. Upon such notice and the failure of Lender to cure such default or commence the cure, Borrower may: A. Demand payment from Lender of any sums due Borrower; B. Bring an action for equitable relief seeking the specific performance by Lender of the terms and conditions of the Loan Documents; or C. Pursue any other remedy allowed at law or in equity. GENERAL PROVISIONS 55. BORROWER'S WARRANTIES. Borrower represents and warrants: (1) that it has access to professional advice and support to the extent necessary to enable Borrower to fully comply with the terms of the Loan Documents and Regulatory Agreement and otherwise carry out the Project; (2) that it is duly organized, validly existing and in good standing under the laws of the State of California; (3) that it has the full power and authority to undertake the Project and accept the Loan; (4) that there are no pending, or to the best of Borrower's knowledge, threatened actions or proceedings before any court or administrative agency which may substantially affect the financial condition or operation of Borrower, other than those already disclosed to Lender; (5) that the persons executing and delivering the Loan Documents and Regulatory Agreement are authorized to execute and deliver such documents on behalf of Borrower; and (6) Borrower shall comply with the Regulatory Agreement at all times during the term of the Regulatory Agreement. 56. SUBORDINATION. Lender hereby acknowledges and agrees that the Regulatory Agreement and the Deed of Trust shall be subordinate to the lien and encumbrance recorded concurrently against the Property of the deed of trust executed by Borrower in favor of the California Municipal Finance Authority to secure a loan in the maximum principal amount of $16,000,000.00. 57. LITIGATION. Borrower must promptly give notice in writing to Lender of any litigation pending or threatened against Borrower in which the amount claimed is in excess of fifty thousand dollars ($50,000). 58. CONFLICTS OF INTEREST. Borrower warrants and represents, to the best of its present knowledge, that no public official of Lender who has been involved in the making of this Loan 510 of 585 Attachment No. 2 or this Agreement, or who is a member of a Lender board or commission which has been involved in the making of this Loan or this Agreement, has or will receive a direct or indirect financial interest in this Loan or the Project in violation of the rules contained in California Government Code Section 1090, et seq., pertaining to conflicts of interest in public contracting. Borrower shall exercise due diligence to ensure that no such official will receive such an interest. If Borrower, a general partner of Borrower, or an affiliate of Borrower or Borrower's general partner is a nonprofit corporation, Borrower warrants and represents, to the best of its present knowledge, that any such public official of Lender who is an employee or a noncompensated director or officer of said nonprofit corporation has disqualified himself or herself from participating in Lender's decision to make this Loan or Agreement. Borrower further warrants and represents, to the best of its present knowledge and excepting any written disclosures as to these matter already made by Borrower to Lender, that (1) no public official of Lender who has participated in decisionmaking concerning this Loan or the Project or has used his or her official position to influence decisions regarding this Loan or the Project, has an economic interest in Borrower or the Project, and (2) neither the Project nor the Loan will have a direct or indirect financial effect on said official, the official's spouse or dependent children, or any of the official's economic interests. Borrower agrees to promptly disclose to Lender in writing any information it may receive concerning any such potential conflict of interest. Borrower's attention is directed to the conflict of interest rules applicable to governmental decisionmaking contained in the Political Reform Act (California Government Code Section 87100, et seq.) and its implementing regulations (California Code of Regulations, Title 2, Section 18700, et seq.). No compensated employee, independent contractor, consultant, proprietor, or owner of Borrower, any general partner or joint venture partner of Borrower, or any affiliate of Borrower or Borrower's partners, may rent, lease, purchase, or occupy any Project Unit, if said person has been or is in a decisionmaking role with respect to the Project. The prohibition in this paragraph extends to the spouses and dependent children of such persons. Borrower shall exercise due diligence to ensure that no Loan proceeds are used in any self - dealing transaction, within the meaning of the California Corporations Code, involving a material financial interest of a director of (1) Borrower, (2) a general partner of Borrower, or (3) an affiliate of Borrower or Borrower's general partner; unless such transaction is expressly permitted or considered valid under the Corporations Code. 59. POLITICAL ACTIVITY. None of the funds, materials, property, or services contributed by Lender or Borrower under the Loan Documents may be used for any political activity or the election or defeat of any candidate for public office. 60. PUBLICITY. Any publicity generated by Borrower for the Project must make reference to the contribution of Lender in making the Project possible. Lender's name shall be prominently displayed in all pieces of publicity generated by Borrower, including flyers, press releases, posters, signs, brochures, and public service announcements. Lender's staff will be available whenever possible at the request of Borrower to assist Borrower in generating publicity for the Project. Borrower agrees to cooperate with Lender in any Lender -generated publicity or promotional activities with respect to the Project. 61. TERM OF THIS AGREEMENT. This Agreement shall commence on the date first set forth above and remain in full force and effect throughout the term of this Loan, except as may be otherwise specified. 511 of 585 Attachment No. 2 62. UNAVOIDABLE DELAY IN PERFORMANCE. The time for performance of provisions of this Agreement by either party shall be extended for a period equal to the period of any delay directly affecting the Project or this Agreement which is caused by: war; insurrection; strikes; lock -outs; riots; floods; earthquakes; fires; casualties; acts of God; acts of a public enemy; epidemics; quarantine restrictions; freight embargoes; lack of transportation; suits filed by third parties concerning or arising out of this Agreement; or unseasonable weather conditions. An extension of time for any of the above -specified causes will be deemed granted only if written notice by the party claiming such extension is sent to the other party within ten calendar days from the commencement of the cause. In any event, rehabilitation of the Project must be completed no later than 90 calendar days after the scheduled Completion Date specified herein, any unavoidable delay notwithstanding. Times of performance under this Agreement may also be extended for any cause for any period of time by the mutual written agreement of Lender and Borrower. 63. GOVERNING LAW. This Agreement shall be interpreted under and be governed by the laws of the State of California, except for those provisions relating to choice of law or those provisions preempted by federal law. 64. STATUTORY REFERENCES. All references in the Loan Documents to particular statutes, regulations, ordinances, or resolutions of the United States, the State of California, or the City of National City shall be deemed to include the same statute, regulation, ordinance, or resolution as hereafter amended or renumbered, or if repealed, to such other provisions as may thereafter govern the same subject. 65. ATTORNEYS' FEES AND COSTS. In the event any legal or administrative action is brought to interpret or enforce the terms of this Agreement, the prevailing party shall be entitled to recover all reasonable attorneys' fees and costs incurred in such action. 66. TIME. Time is of the essence in the performance of this Agreement by Lender and Borrower. 67. CONSENTS AND APPROVALS. Any consent or approval required under this Loan Agreement may not be unreasonably withheld, delayed, or conditioned. 68. NOTICES, DEMANDS AND COMMUNICATIONS. Formal notices, demands and communications between Borrower and Lender shall be given by registered or certified mail, postage prepaid, return receipt requested, or by overnight mail, or shall be delivered personally, to the principal offices of Borrower and Lender as follows, or if any such office is relocated, to the new address specified by the relocated party: LENDER: Community Development Commission -Housing Authority of the City of National City 140 East 12th Street National City, CA 91950-3312 Attn: Executive Director BORROWER: Vista Del Sol Apartments, L.P. 9421 Haven Avenue Rancho Cucamonga, CA 91730 512 of 585 Attachment No. 2 With a copy to: Gubb & Barshay LLP 505 14th Street, Suite 450 Oakland, CA 94612 Attention: Scott Barshay, Esq. With a copy to: WNC California Holding, LLC c/o WNC & Associates, Inc. 17782 Sky Park Circle Irvine, CA 92614-6404 Attention: Michael J. Gaber With a copy to: Holland & Knight Barshay LLP 10 St. James Avenue, 1 1th Floor Boston, MA 02116 Attention: Jonathan I. Sirois, Esq. 69. BINDING UPON SUCCESSORS. All provisions of these Loan Documents are binding upon and inure to the benefit of the heirs, administrators, executors, successors -in -interest, transferees, and assigns of each of the parties; provided, however, that this section does not waive the prohibition on assignment of this Agreement by Borrower without Lender's consent. The term "Borrower" as used in these Loan Documents includes all assigns, successors -in -interest, and transferees of Borrower. 70. RELATIONSHIP OF PARTIES. The relationship of Borrower and Lender is solely that of a debtor and a creditor, and should not be construed as a joint venture, equity venture, partnership, or any other relationship. Lender does not undertake or assume any responsibility or duty to Borrower (except as provided for herein) or to any third party with respect to the Project, the Property, or the Loan. Except as Lender may specify in writing, Borrower has no authority to act as an agent of Lender or to bind Lender to any obligation. 71. ASSIGNMENT AND ASSUMPTION. Borrower may not assign any of its interests under this Agreement or other Loan Documents to any other party, except as specifically permitted under the terms of this Agreement or the other Loan Documents, without the prior written consent of Lender. Any unauthorized assignment shall be void. 72. WAIVER. Any waiver by Lender of an obligation in these Loan Documents must be in writing and must be executed by an authorized agent of Lender. No waiver should be implied from any delay or failure by Lender to take action on any breach or Event of Default of Borrower or to pursue any remedy allowed under the Loan Documents or applicable law. Any extension of time granted to Borrower to perform any obligation under the Loan Documents will not operate as a waiver or release from any of its obligations under the Loan Documents. Consent by Lender to any act or omission by Borrower should not be construed to be a consent to any other act or omission or to waive the requirement for Lender's written consent to future waivers. 73. INTEGRATION. The Loan Documents and the Regulatory Agreement contain the entire agreement of the parties with respect to the Loan, and supersede any prior negotiations. All prior or contemporaneous agreements, understandings, representations, and statements are merged into these Loan Documents and are of no further force or effect. 74. OTHER AGREEMENTS. Borrower represents that it has not entered into any agreements that are inconsistent with the terms of the Loan Documents. Borrower may not enter into 513 of 585 Attachment No. 2 any agreements that are inconsistent with the terms of the Loan Documents without an express written waiver by Lender. 75. AMENDMENTS AND MODIFICATIONS. Any amendments or modifications to this Agreement must be in writing, and will be effective only if executed by both Borrower and Lender. 76. SEVERABILITY. Every provision of this Agreement is intended to be severable. If any provision of this Agreement is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired. 77. EXHIBITS. The following Exhibits are attached to this Agreement and are hereby incorporated into this Agreement by reference: Exhibit A: Property Description Exhibit B: Budget Exhibit C: Eligible Costs Exhibit D: Project Description Exhibit E: Schedule Exhibit F: Form of Construction Contract Addendum Exhibit G: Insurance Requirements 78. COUNTERPARTS. This Agreement may be signed in multiple counterparts, which, when signed by all parties, will constitute a binding agreement. [SIGNATURE BLOCKS ON NEXT PAGE] 514 of 585 Attachment No. 2 IN WITNESS WHEREOF, the undersigned parties have executed this Loan Agreement, effective as of the date first written above. "BORROWER" VISTA DEL SOL APARTMENTS, L.P., a California limited partnership By: Vista Del Sol GP LLC, a California limited liability company, its general partner By: National Community Renaissance of California, a California nonprofit public benefit corporation, its managing member By: Its: [SIGNATURES CONTINUED ON FOLLOWING PAGE] 515 of 585 Attachment No. 2 "LENDER" THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY, a public body corporate and politic By: Its: Executive Director Approved as to form and legality: By: Deputy City Attorney 516 of 585 Attachment No. 2 LOAN AGREEMENT (Vista Del Sol Apartments) EXHIBIT A PROPERTY DESCRIPTION (attached) 517 of 585 Attachment No. 2 LOAN AGREEMENT (Vista Del Sol Apartments) EXHIBIT B BUDGET (attached) 518 of 585 Attachment No. 2 LOAN AGREEMENT (Vista Del Sol Apartments) EXHIBIT C ELIGIBLE COSTS Eligible Costs include the following costs associated with the low and moderate income affordable component of the Project: Rehabilitation hard costs Soft costs Financing costs Relocation costs Reasonable developer fee and any other items approved in writing by Lender. 519 of 585 Attachment No. 2 LOAN AGREEMENT (Vista Del Sol Apartments) EXHIBIT D PROJECT DESCRIPTION 520 of 585 Attachment No. 2 LOAN AGREEMENT (Vista Del Sol Apartments) EXHIBIT E SCHEDULE Task Date 521 of 585 Attachment No. 2 LOAN AGREEMENT (Vista Del Sol Apartments) EXHIBIT F FORM OF CONTRACTOR ADDENDUM CONSTRUCTION CONTRACT ADDENDUM This Construction Contract Addendum is made this day of by and between Vista Del Sol Apartments, L.P. ("Owner"), and ("Contractor"). RECITALS A. Owner and Contractor have entered into a construction agreement dated under which Contractor has agreed to undertake construction work on the above -captioned housing project (the "Contract"). B. Owner is borrowing funds from the Community Development Commission -Housing Authority of the City of National City, a public body, corporate and politic ("Lender") to support development of the Project, and has executed a Loan Agreement, Deed of Trust, Promissory Note, and Regulatory Agreement in connection with this Loan. The Loan Agreement, Deed of Trust, and Promissory Note are herein referred to as the "Loan Documents." C. Owner and Contractor wish to modify and add to the terms of the Contract as set forth in this Addendum, and Contractor agrees to be bound by the following provisions in the rehabilitation of said Project, in order to provide for certain terms required by Lender as a condition to financing of the Project. Lender has indicated that it will not make this Loan unless Contractor agrees to be bound by the terms hereof. NOW, THEREFORE, Owner and Contractor hereby agree as follows: 1. OWNER'S OBLIGATIONS. Owner agrees that any obligation imposed on Contractor by this Addendum does not waive, diminish, or alter any of Owner's obligations to Lender under the Loan Documents, and that the obligations of Contractor to Lender contained herein are in addition to those obligations of Owner to Lender contained in the Loan Documents. Owner shall be solely responsible for satisfying its obligations to Contractor under the Contract. 2. CONSENT TO ASSIGNMENT OF DEVELOPMENT RIGHTS. Contractor consents to the assignment of its Contract with Owner to Lender under the conditions specified in the loan agreement between Owner and Lender for the Project (the "Loan Agreement"). Contractor agrees that if there is a breach of the Loan Agreement or any other Event of Default, Lender may elect to enforce the assignment and take over the Contract. Contractor agrees to continue to perform its obligations under the Contract and this Addendum for the benefit and account of Lender in the same manner as if performed for the benefit and account of Owner in the absence of the assignment at no additional cost to Lender, as long as Contractor continues to receive the compensation called for under the Contract. Contractor agrees that Lender shall not have any obligation under the Contract until Lender notifies it in writing of Lender's election to accept the assignment. 522 of 585 Attachment No. 2 3. COMMENCEMENT AND COMPLETION OF REHABILITATION. Contractor must begin rehabilitation of the Project by the date set for the commencement of rehabilitation in the Loan Agreement. Contractor may not commence rehabilitation until Lender has issued a written notice to proceed to Owner. Contractor must diligently prosecute rehabilitation of the Project to completion, and must complete rehabilitation of the Project by the completion date set forth in the Loan Agreement. 4. CONSTRUCTION BONDS. Contractor must obtain a labor and material (payment) bond and a performance bond, or a dual bond which covers both payment and performance obligations, with respect to the rehabilitation of the Project in a penal sum each of not less than one hundred percent (100%) of the scheduled cost of rehabilitation . Such bonds must be issued by a company which is authorized to transact surety insurance in California and which has assets exceeding its liabilities in an amount equal to or in excess of the bond amount. The bonds must name Lender as a co -obligee or assignee. In lieu of said bonds, a letter of credit in the sole name and possession of Lender in the penal amount and in a form acceptable to Lender may be substituted. 5. CONTRACT WORK. Contractor warrants and represents that it is licensed or otherwise authorized to perform the rehabilitation work specified in the Contract in the State of California. Contractor warrants and represents that it holds a current City of National City Business Tax Certificate. All rehabilitation work must be performed by persons or entities licensed or otherwise authorized to perform the applicable rehabilitation work in the State of California. Contractor shall insert similar provisions in all subcontracts for work for the Project. 6. SUBCONTRACTS. Contractor must submit to Owner for forwarding to Lender drafts of all of its construction subcontracts pertaining to development of the Project. Contractor understands that Lender retains the right to review and approve any such contract or any amendment to any construction contacts prior to execution in which the maximum contract amount exceeds $5,000. As a precondition to approval, Lender may require that the subcontractor enter into an agreement in substantially the same form as this Addendum. 7. QUALITY OF WORK. Contractor must construct the Project in conformance with the Plans and Specifications and any modifications thereto approved by Lender. Contractor must construct the Project according to general industry standards and shall employ building materials of a quality suitable for the requirements of the Project and conforming to general industry standards. Contractor must construct the Project in full conformance with applicable local, state, and federal statutes, regulations, and building and housing codes. The parties acknowledge that Lender is under no duty to review the Plans and Specifications or to inspect rehabilitation of the Project. Any review or inspection undertaken by Lender of the Project is solely for the purpose of determining whether Owner and Contractor are properly discharging their obligations to Lender, and should not be relied upon by Owner, Contractor, or any third parties as a warranty or representation by Lender as to the quality of the design or rehabilitation of the Project. 8. ADDITIONS OR CHANGES IN WORK. Lender and Owner must be notified in a timely manner of any changes in the work required to be performed under the Contract or this Addendum, including any substantial additions, changes, or deletions to the approved Plans and Specifications. A written change order authorized by Lender must be obtained before any of the following changes, additions, or deletions in work for the Project may be performed: (1) any change that exceeds ten thousand dollars ($10,000); or (2) any set of changes that cumulatively exceeds fifty thousand dollars ($50,000) or 10% of the Loan amount, whichever is less; or (3) any substantial change 523 of 585 Attachment No. 2 in building materials or equipment, specifications, or the architectural or structural design of the Project as provided for in the Plans and Specifications. Consent to any additions, changes, or deletions to the work shall not release Contractor from any other obligations herein, or release Contractor or its surety from any surety bond. 9. SITE INSPECTIONS. Contractor shall permit and facilitate observation and inspection of work at the job site by Lender and its agents and by public authorities during reasonable business hours. 10. AUDITS. Contractor must make available for examination at reasonable intervals and during normal business hours to Lender's representatives all books, accounts, reports, files, and other papers or property with respect to all matters covered by the Contract and this Addendum, and must permit these representatives to audit, examine, and make copies, excerpts or transcripts from such records. 11. LEAD -BASED PAINT. Contractor and its subcontractors may not use lead -based paint in the rehabilitation or maintenance of the Property. Contractor must insert such a provision in all subcontracts for work performed on the Project which involve the application of paint. Borrower shall ensure, from the date of completion through the date the affordability period terminates, that the Project is in compliance with the lead based paint provisions contained in the Lead -Based Paint Poisoning Act (42 USC Section 4821 et seq.), 24 CFR Part 35, and 24 CFR Section 982.401(j). 12. NONDISCRIMINATION. Contractor may not discriminate against any employee or applicant for employment on the basis of race, color, religion, sex, sexual preference, national origin, AIDS or AIDS -related conditions, or disability in any phase of employment during rehabilitation. Contractor agrees to post in conspicuous places available to all employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. 13.COMPLIANCE WITH LAWS. Contractor shall perform its work in conformity with all applicable laws, including all applicable state labor standards; the Lender zoning and development standards, building, plumbing, mechanical and electrical codes, and all other provisions of the Lender's Municipal Code, and all applicable disabled and handicapped access requirements, including without limitation the Americans With Disabilities Act, 42 U.S.C. Section 12101, et seq., Government Code Section 4450, et seq., Government Code Section 11135, et seq ., the Unruh Civil Rights Act, Civil Code Section 51, et seq., and the California Building Standards Code, Health and Safety Code Section 18900, et seq. 14. REPORTING. Contractor must submit information on forms supplied by Lender concerning the workforce and ownership composition of Contractor, its subcontractors and suppliers, as reasonably requested by Lender. 15. INSURANCE COVERAGE. Contractor, if Contractor is the general contractor for the Project, must have in full force and effect during the rehabilitation of the Project the insurance coverage required under the Loan Agreement. 16. WORKERS' COMPENSATION. Contractor must carry or cause to be carried Workers' Compensation and Employers' Liability Insurance as required by the California Labor Code for all persons employed in connection with this Project. 524 of 585 Attachment No. 2 17. NON -LIABILITY OF OFFICIALS, EMPLOYEES AND AGENTS. No member, official, employee, or agent of Lender shall be personally liable to Contractor for any obligation created under the terms of the Contract or this Addendum except in the case of actual fraud or willful misconduct by such person. 18. INDEMNITY. Notwithstanding the insurance requirements herein, Contractor hereby indemnifies and holds Lender, its members, officers, officials, employees, and agents, harmless against any losses, damages, liabilities, claims, demands, judgments, actions, court costs, and legal or other expenses (including attorneys' fees) which Lender may incur as a consequence of Contractor's failure to perform any obligations as and when required by the Contract or this Addendum, any act or omission by Contractor or its subcontractors with respect to the Project, or any failure of any of Contractor's representations or warranties to be true and complete, except to the extent such losses are caused by the negligence or willful misconduct of Lender. Contractor shall pay immediately upon Lender's demand any amounts owing under this indemnity. The duty of Contractor to indemnify includes the duty to defend Lender in any court action, administrative action, or other proceeding brought by any third party arising from the Project. Contractor's duty to indemnify Lender shall survive the term of the Contract. 19. HAZARDOUS MATERIALS. Neither Contractor nor any of its subcontractors may use the Property or allow the Property to be used for the generation, manufacture, storage, disposal, or release of Hazardous Materials. Contractor shall immediately notify Lender and Owner in writing of: (a) the discovery of any concentration or amount of Hazardous Materials on or under the Property requiring notice to be given to any governmental agency under Hazardous Materials Laws; (b) any knowledge by Contractor that the Property do not comply with any Hazardous Materials Laws; (c) the receipt by Contractor of written notice of any Hazardous Materials claims; and (d) the discovery by Contractor of any occurrence or condition on the Property or on any real property located within 2,000 feet of the Property that could cause the Property to be designated as a "hazardous waste property" or as a "border zone property" under California Health and Safety Code Sections 25220, et seq., or regulations adopted therewith. 20. NOTICE OF DEFAULT TO LENDER. Contractor shall give Lender prior or concurrent written notice of any default or breach claimed by Contractor against Owner or any other party under the Contract. The notice shall describe the default and give Lender the option to cure said default within 30 calendar days. No termination of the Contract by Contractor shall be binding unless Lender has been given the required notice and has not cured the default within 30 calendar days. 21. REMEDIES. The parties hereto agree that Lender, while not a party to the Contract, is an intended third party beneficiary of the obligations imposed on Contractor in this Addendum. In the event of any breach or violation of any agreement or obligation of Contractor under the Contract or this Addendum, Lender may proceed with any of the following remedies: A. Bring an action in equitable relief seeking the specific performance by Contractor of the terms and conditions of the Contract or this Addendum, and/or enjoining, abating, or preventing any violation of said terms and conditions; B. Order immediate stoppage of rehabilitation and demand that any condition leading to the default be corrected before rehabilitation may continue; C. Enter the Property and take any actions necessary in its judgment to complete rehabilitation of the Project as permitted under the assignment of development rights; or 525 of 585 Attachment No. 2 D. Pursue any other remedy allowed at law or in equity. 22. GOVERNING LAW. This Addendum shall be interpreted under and be governed by the laws of the State of California, except for those provisions relating to choice of law and those provisions preempted by federal law. 23. DEFINITIONS. Capitalized terms not defined in this Addendum shall have the same meaning as defined in the Loan Agreement. 24. ATTORNEYS' FEES AND COSTS. In the event any legal action is commenced to interpret or to enforce the terms of this Addendum, the prevailing party in any such action shall be entitled to recover all reasonable attorneys' fees and costs incurred in such action. 25. TIME. Time is of the essence in the performance of this Addendum by Contractor. 26. CONSENTS AND APPROVALS. Any consent or approval required under this Addendum shall not be unreasonably withheld, delayed, or conditioned. 27. BINDING UPON SUCCESSORS. All provisions of this Addendum shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors -in -interest, transferees, and assigns of each of the parties; provided, however, that this section does not waive the prohibition on assignment of this Addendum by Contractor without Lender's consent. 28. RELATIONSHIP OF CONTRACTOR AND LENDER. Contractor understands that Lender neither undertakes nor assumes any responsibility or duty to Contractor or to any third party. The relationship of Contractor and Lender for this Project shall not be construed as a joint venture, equity venture, or partnership. Lender shall have no obligation to any party under the Contract, but is an intended third party beneficiary of the obligations under this Addendum. Contractor shall have no authority to act as an agent of Lender or to bind Lender to any obligation. 29. ASSIGNMENT. Contractor may not assign any of its interests under the Contract or the Addendum to any other party, except with the prior written consent of Lender. Any unauthorized assignment shall be void. 30. AMENDMENTS AND MODIFICATIONS. Any amendments or modifications to this Addendum must be in writing, and shall be made only if executed by Owner and Contractor, and consented to in writing by Lender. 31. SEVERABILITY. Every provision of this Addendum is intended to be severable. If any provision of this Addendum is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired. 32. ADDENDUM CONTROLS. In the event that any provisions of this Addendum and the Contract conflict, the terms of this Addendum shall control. [SIGNATURE BLOCKS ON NEXT PAGE] 526 of 585 Attachment No. 2 IN WITNESS WHEREOF, the undersigned parties have executed this Construction Contract Addendum as of the date first written above. "CONTRACTOR" By: Title: "OWNER" VISTA DEL SOL APARTMENTS, L.P., a California limited partnership By: Vista Del Sol GP LLC, a California limited liability company, its general partner By: National Community Renaissance of California, a California nonprofit public benefit corporation, its managing member By: Its: 527 of 585 Attachment No. 2 LOAN AGREEMENT (Vista Del Sol Apartments) EXHIBIT G INSURANCE REQUIREMENTS I. Insurance Coverage Requirements Borrower must procure, prior to Loan closing, and keep in force for the term of this Agreement, at Borrower's own cost and expense, the following policies of insurance or certificates or binders as necessary to represent that coverage as specified below is in place with companies doing business in California and acceptable to Lender. If requested, Borrower must provide Lender with copies of all insurance policies. The insurance must at a minimum include: A. Commercial General Liability insurance, shall cover liability arising from premises, operations, independent contractors, products -completed operations, personal and advertising injury, Bodily Injury, Broad Form Property Damage, and liability assumed under an insured contract (including the tort liability of another assumed in a business contract); Contractual Liability; XCU; and Owners and Contractor Protective Liability. Pollution Liability coverage is required if Loan proceeds are used for the remediation of Hazardous Materials. The CGL policy must contain severability of interest clause or cross liability clause or the equivalent thereof. If such CGL insurance contains a general aggregate limit, it shall apply separately to this Agreement. i. Coverage afforded on behalf of Lender shall be primary insurance and any other insurance available to Lender under any other policies shall be excess insurance (over the insurance required by this Agreement). ii. Limits of liability: Borrower must maintain commercial general liability (CGL) and, if necessary, commercial umbrella insurance with a limit of not less than $2,000,000 each occurrence. If such CGL insurance contains a general aggregate limit, it must apply separately to this project. B. Automobile Liability Insurance. Borrower shall maintain automobile liability insurance for bodily injury and property damage liability with a limit of not less than $1,000,000 each accident. Such insurance shall cover liability arising out of any auto (including owned, hired, and non -owned autos). Coverage shall be at least as broad as Insurance Services Office Form Number CA 00 01. C. Worker's Compensation insurance as required by the laws of the State of California. Statutory coverage may include Employers Liability coverage with limits not less than $1,000,000. Borrower certifies that it is aware of the provisions of section 3700 of the California Labor Code, which require every employer to provide Workers' Compensation coverage, or to undertake self-insurance in accordance with the provisions of that Code. 528 of 585 Attachment No. 2 Borrower and its contractors must comply with the provisions of section 3700 of the California Labor Code before commencing performance of the work under this Agreement and thereafter as required by that code. D. Professional Liability/Errors and Omissions insurance as appropriate for design/build operations with limits not less than $2,000,000 each claim. If the professional liability/errors and omissions insurance is written on a claims made form: i. The retroactive date must be shown and must be before the date of the contract or the beginning of work. ii. Insurance must be maintained and evidence of insurance must be provided for at least three (3) years after completion of this Agreement. iii. If coverage is cancelled or non -renewed and not replaced with another claims made policy form with a retroactive date prior to the Agreement effective date, Borrower must purchase extended period coverage for a minimum of three (3) years after completion of work. E. Builders Risk/Course of Construction Insurance (CP 10 30) covering all risks of loss in an amount equal to the completed value form with no coinsurance penalty provisions and in an amount equal to the initial contract sum, subject to subsequent modification of the contract sum. The insurance shall apply on a replacement cost basis. The insurance shall name as insured the City of National City, the Borrower, and all subcontractors in the work. The insurance shall cover the entire work at the site identified herein including reasonable compensation for architectural services, engineering costs, financing costs, legal fees (soft costs) and expenses made necessary by an insured loss. Insured property shall include portions of the work located away from the site but intended for use at the site and shall also cover portions of the work in transit. The policy shall cover the cost of removing debris, including demolition as may be made legally necessary by the operation of any law, ordinance or regulation. The insurance shall be maintained in effect until the Project has been accepted as substantially complete. The insurer shall waive all rights of subrogation against the City. F. Property Insurance on an all risk coverage basis to the extent of full replacement value of the premises for the duration of the term of the Loan. Coverage amount may be adjusted for fluctuation in replacement values. This coverage is required upon completion of rehabilitation of the Project, or upon closing of this Loan if the Project is a rehabilitation project. G. Loss of Rents Insurance Coverage in the amount of 75% of scheduled annual gross rents. II. Terms, Conditions, and Endorsements The insurance required by this Agreement must be endorsed and have all the following 529 of 585 Attachment No. 2 conditions: A. Insured Status (Additional Insured): Borrower shall provide insured status naming the City of National City, its councilmembers, directors, officers, agents, employees and volunteers as insured's under the Commercial General Liability policy. General Liability coverage can be provided in the form of an endorsement to Borrower's insurance (at least as broad as ISO Form CG 20 10 (11/85) or both CG 20 10 and CG 20 37 forms, if later revisions used). If Borrower submits the ACORD Insurance Certificate, the insured status endorsement must be set forth on an ISO form CG 20 10 (or equivalent). A STATEMENT OF ADDITIONAL INSURED STATUS ON THE ACORD INSURANCE CERTIFICATE FORM IS INSUFFICIENT AND WILL BE REJECTED AS PROOF OF MEETING THIS REQUIREMENT. B. Loss Payee: Borrower must ensure that the City of National City, its Councilmembers, directors, officers, agents, employees and volunteers are named as Loss Payee in the Builders' Risk Insurance and Property Insurance. Borrower shall provide appropriate Loss Payee endorsement as proof of meeting this requirement. C. Cancellation Notice: 30-day prior written notice of termination or material change in coverage and 10-day prior written notice of cancellation for non-payment. D. The Worker's Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the contractor, its employees, agents and subcontractors. E. Cross -liability coverage as provided under standard ISO forms' separation of insureds clause. F. Certificate holder is to be the same person and address as indicated in the "Notices" section of this Agreement. G. Insurer must carry an A.M. Best Rating of A VIE, or better. III. Replacement of Coverage In the case of the breach of any of the insurance provisions of this Agreement, Lender may, at Lender's option, take out and maintain at the expense of Borrower such insurance in the name of Borrower as is required pursuant to this Agreement, and may deduct the cost of taking out and maintaining such insurance from any sums which may be found or become due to Borrower under this Agreement. IV. Insurance Interpretation 530 of 585 Attachment No. 2 All endorsements, certificates, forms, coverage and limits of liability referred to herein shall have the meaning given such terms by the Insurance Services Office (ISO) as of the date of this Agreement. V. Proof of Insurance Borrower will be required to provide proof of all insurance required for the Loan prior to execution of the Loan Agreement, including copies of Borrower's insurance policies, if and when requested. Failure to provide the insurance proof requested or failure to do so in a timely manner shall constitute grounds for rescission of the Loan Agreement award. VI. Subcontractors Should Borrower subcontract out the work required under this Agreement, they shall include all subcontractors as insureds under its policies or shall maintain separate certificates and endorsements for each subcontractor. As an alternative, Borrower may require all subcontractors to provide at their own expense evidence of all the required coverages listed in this Exhibit. If this option is exercised, both Lender and Borrower shall be named as additional insured under the subcontractor's General Liability policy. All coverages for subcontractors shall be subject to all the requirements stated herein. Lender reserves the right to perform an insurance audit during the course of the project to verify compliance with requirements. VII. Deductibles and Self -Insured Retentions Any deductible or self -insured retentions must be declared to and approved by Lender. At the option of Lender, either: the insurer shall reduce or eliminate such deductible or self -insured retentions as respects Lender, its Councilmembers, directors, officers, agents, employees and volunteers; or Borrower shall provide a financial guarantee satisfactory to Lender guaranteeing payment of losses and related investigations, claim administration and defense expenses. WI. Waiver of Subrogation Borrower waives all rights against the Community Development Commission -Housing Authority of the City of National City and its Councilmembers, officers, directors, employees and volunteers for recovery of damages to the extent these damages are covered by the forms of insurance coverage required above. IX. Evaluation of Adequacy of Coverage Lender maintains the right to modify, delete, alter or change these requirements, with reasonable notice, upon not less than ninety (90) days prior written notice. 531 of 585 Attachment No. 2 NO FEE DOCUMENT Government Code Section 27383 Recording requested by: When recorded mail to: Community Development Commission of the City of National City 140 E. 12th Street, Suite B National City, CA 91950-3312 Attention: Executive Director AMENDED AND RESTATED REGULATORY AGREEMENT THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY AND VISTA DEL SOL APARTMENTS, L.P. 532 of 585 Attachment No. 2 AMENDED AND RESTATED REGULATORY AGREEMENT This Amended and Restated Regulatory Agreement ("Regulatory Agreement") is dated as of the day of , 2017, by and between the Community Development Commission -Housing Authority of the City of National City (the "CDC -HA"), a public body, corporate and politic and Vista Del Sol Apartments, L.P. ("Owner"), a California limited partnership. RECITALS This Regulatory Agreement is entered into based on the following facts and understandings of the parties: A. Concurrently herewith Owner is acquiring all of the real property ("Property") described in that certain Regulatory Agreement and Declaration of Restrictive Covenants dated as of December 7, 1998, and recorded in the Office of the County Recorder for the County of San Diego on December 11, 1998 as Instrument Number 1998-0807600 ("Previous Regulatory Agreement") originally made by Copper Hills Apartments Limited Partnership, a California limited partnership ("Prior Owner") the Community Development Commission of the City of National City ("Original Lender"). Owner proposes to acquire and rehabilitate a 132-unit rental housing project the Proprty, which is commonly known as Vista Del Sol Apartments at 1400, 1401, 1410, 1421, 1433, 1436, 1438, 1440, 1445, 1536, 1537, 1538, 1543, 1545 and 1500 Q Avenue, National City, California, which is rented at amounts affordable to certain income groups as specified herein. B. The acquisition and proposed rehabilitation is intended to serve as a community resource by providing decent, safe, and sanitary housing for households who would otherwise be unable to afford such housing. The CDC -HA has previously provided the properties with financial assistance in the form of loans from public funds to support development of the properties, in order to increase and improve the supply of housing available in the community to low and moderate -income households. C. The CDC -HA elected to retain the housing assets of and functions previously performed by the Original Lender pursuant to California Health and Safety Code Section 34176, and thereby, by operation of law, the CDC -HA assumed the rights and obligations of the Original Lender with respect to the Previous Regulatory Agreement. D. Concurrently herewith the Owner is acquiring the Property from Prior Owner and the Owner is assuming all of the rights and liabilities of the Original Owner with respect to the Previous Regulatory Agreement. The CDC -HA and Owner desire to amend and restate the Previous Regulatory Agreement in its entirety, as provided herein. This Regulatory Agreement has also been executed and recorded pursuant to the requirements of California Health and Safety Code Section 33334.3. The purpose of this Regulatory Agreement is to regulate and restrict the occupancy, rents, operation, ownership, and management of the property for the benefit of project occupants and the people of the City of National City. The covenants in this Regulatory Agreement are intended to run with the land and be binding on Owner and Owner's successors to the land for the full term of this Regulatory Agreement. NOW, THEREFORE, in consideration of the foregoing recitals (which are hereby incorporated into this Agreement) and the covenants and mutual obligations contained in this Regulatory Agreement, and in reliance on the representations and warranties set forth herein, Owner and the CDC -HA hereby amend and restate the Previous Regulatory Agreement in its entirety and agree as follows: 533 of 585 Attachment No. 2 DEFINITIONS 1. DEFINED TERMS. The following terms and their derivatives have the meanings set forth in this section wherever used in this Regulatory Agreement or attached exhibits. Capitalized terms not defined in this Regulatory Agreement shall have the same meaning as defined in the Loan Agreement: "CDC -HA" means the Community Development Commission -Housing Authority of the City of National City, a public body corporate and politic, along with any assigns, transferees, or successors -in - interest thereto. "City" means the City of National City. "Deed of Trust" means that certain Deed of Trust, Assignment of Rents, and Security Agreement placed on the Property concurrently herewith as security for the Loan and other obligations, with Owner as trustor and the CDC -HA as beneficiary, as well as any amendments to, modifications of, and restatements of the Deed of Trust. "Loan" means the loans provided by the CDC -HA to Owner's predecessor -in -interest as assumed by Owner in connection with the Property, in the current total amount of $7,407,795.08. "Loan Agreement" means that certain Amended and Restated Loan Agreement executed contemporaneous with this Regulatory Agreement between Owner and the CDC -HA which governs the Loan, as well as any amendments to, modifications of, or restatements of said agreement. "Loan Documents" mean collectively the Loan Agreement, Deed of Trust, and Note, as they may be amended, modified, or restated from time to time, along with all exhibits and attachments to these documents. "Note" mean that certain Consolidated, Amended and Restated Promissory Note executed by Owner in favor of the CDC -HA evidencing the Loan, which are secured by the Deed of Trust, as well as any amendments to, modifications of, or restatements of the Note. "Owner" means Vista Del Sol Apartments, L.P., a California limited partnership. "Project" means the rehabilitation of the Property for residential and other uses according to the terms of the Loan Agreement. "Project Unit" means any housing unit developed on the Property (but specifically excluding one unrestricted manager's unit). "Property" has the meaning ascribed to it in Recital A, above. AMENDED AND RESTATED AGREEMENT 2. TERMINATION OF PRIOR REGULATORY AGREEMENTS. This Regulatory Agreement amends and restates in its entirety the Previous Regulatory Agreement. The Previous Regulatory 534 of 585 Attachment No. 2 Agreement is hereby terminated contemporaneously with execution of this Regulatory Agreement, and shall be of no further force or effect. OWNER'S OBLIGATIONS 3. COMPLIANCE WITH LOAN DOCUMENTS. Owner's actions with respect to the Property and the use of Loan funds must at all times be in full conformity with the requirements of the Loan Documents. Owner must complete the rehabilitation as required under the Loan Agreement. 4. TERM OF AGREEMENT. This Regulatory Agreement shall commence upon execution and shall continue until December 31, 2073. The obligations in this Regulatory Agreement shall remain effective and fully binding on the Property and the Owner, or Owner's successor in the event of any approved sale, assignment, transfer, or conveyance of the Property and release of the Owner (pursuant to the terms of the Loan Agreement and/or this Regulatory Agreement), for this full term regardless of any expiration of the term of the Loan, any payment or prepayment of the Loan, or any reconveyance of the Deed of Trust, unless terminated earlier by the CDC -HA in a recorded writing or extended by the mutual consent of the parties. PROJECT UNIT OCCUPANCY AND RENTS 5. USE COVENANT. Owner covenants by and for itself and any successors in interest that the use of the Property shall be restricted for the term of this Regulatory Agreement only to residential use and ancillary uses associated with residential use. 6. OCCUPANCY OF PROJECT UNITS. Owner must limit for the full term of this Regulatory Agreement the rental of Project Units to tenant households according to the occupancy requirements set forth in Exhibit A attached hereto. 7. RENTS FOR PROJECT UNITS. Owner must limit for the full term of this Regulatory Agreement rents for Project Units to those rents specified in Exhibit A and in conformance with the rent - setting requirements in Exhibit A. 8. RELATIONSHIP TO TAX CREDIT REQUIREMENTS. Notwithstanding any other provisions of this Regulatory Agreement, to the extent that the regulatory agreement executed by the Owner as a requirement of receiving the Tax Credits (the "Tax Credit Regulatory Agreement") is less restrictive with respect to the requirements applicable to tenant selection, tenant income levels and unit rent levels than as provided in this Regulatory Agreement, this Regulatory Agreement shall control. 9. NONDISCRIMINATION. Owner may not discriminate or segregate in the use, enjoyment, occupancy, conveyance, lease, sublease, or rental of Project Units on the basis of race, color, ancestry, national origin, religion, sex, sexual preference, age, marital status, family status, source of income, physical or mental disability, Acquired Immune Deficiency Syndrome (AIDS) or AIDS -related conditions (ARC), or any other arbitrary basis. Owner shall not refuse to lease Project Units to a certificate or voucher holder under the Section 8 Rental Certificate Program or the Section 8 Rental Voucher Program, or to the holder of a comparable document evidencing participation in a tenant -based rental assistance program, because of the status of the prospective tenant as a holder of such certificate, voucher, or comparable tenant -based assistance document. Owner shall include a statement in all advertisements, notices and signs for the availability of Project Units for rent to the effect that Owner is an Equal Housing Opportunity Provider. 535 of 585 Attachment No. 2 10. LEASE REQUIREMENTS. Prior to rental of any of the Project Units, the Owner shall submit a standard lease form to the CDC -HA for the CDC -HA approval, which approval shall not unreasonably be withheld or delayed. The Owner shall enter into a lease, in the form approved by the CDC -HA, with each tenant of a Project Unit. PROPERTY MANAGEMENT 11. MANAGEMENT RESPONSIBILITIES. Owner is responsible for contracting with a property manager who will be responsible for all management functions with respect to the Property, including without limitation the selection of tenants, certification and recertification of household size and income, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security. The CDC -HA shall have no responsibility over management of the Property. 12. MANAGEMENT ENTITY. The CDC -HA shall have the right to review and approve, with at least 90-days advance written notice, the management entity chosen by Owner for the Property, and the right to require a change in the management agent for reasonable cause at any time during the term of this Regulatory Agreement; provided however, that if Owner's lender does not require such a change in the management agent, then Owner and the CDC -HA shall endeavor to reach an agreement mutually acceptable between the CDC -HA and the Owner's lender over the issue. Any contracting of management services by Owner shall not relieve Owner of its primary responsibilities for proper performance of management duties. 13. MANAGEMENT PLAN AND CONTRACT. At least 180 calendar days prior to completion of rehabilitation of the Project, Owner must submit to the CDC -HA for review and approval a plan for marketing and managing the Property (the "Final Management Plan" or "Plan"). The Plan shall address how the Owner and the management entity plan to manage and maintain the Property, and shall include appropriate financial information and documentation, including, without limitation, a rent schedule and a projected operating budget for the first year of operation. The Plan shall include a form rental agreement that Owner proposes to enter into with Project tenants. Owner shall abide by the terms of this Plan in marketing, managing, and maintaining the Property. At least 90 calendar days prior to completion of rehabilitation of the Project, Owner must submit a proposed management contract to the CDC -HA for the CDC-HA's review and approval. The CDC -HA shall have the right to review and approve, with at least 90-days advance written notice, any proposed amendments to said contract or any new management contracts during the term of this Regulatory Agreement. If the CDC -HA has not responded to any submission of the Final Management Plan or management contract (including amendments) by Owner within 15 business days of receipt of such Plan or contract by the CDC -HA, the Plan or contract (including amendments) shall be deemed approved by the CDC -HA. 14. ANNUAL OPERATING BUDGETS. At least 90 calendar days prior to the commencement of a Property's fiscal year, Owner shall submit to the CDC -HA for the CDC-HA's review and approval a proposed operating budget for the coming year, in a form satisfactory to the CDC -HA. The proposed operating budget shall include projected income from all sources, projected expenses, including operating expenses, debt service and deposits to reserves, and projected distributions including without limitation partnership management fees, asset management fees, deferred developer fees, and any other distributions to Owner or other parties. 536 of 585 Attachment No. 2 If the CDC -HA has not responded to any submission of the proposed operating budget by Owner within 20 business days of receipt of such operating budget by the CDC -HA, the operating budget shall be deemed approved by the CDC -HA. 15. DOCUMENTS TO BE MAINTAINED ON SITE. Owner shall at all times maintain on a Property site, in the rental office or otherwise in the control of the property manager, copies of the current Final Management Plan and operating budget, and copies of all regulatory agreements and other documents imposing limitations on rent or occupancy of any Project Units. 16. MAINTENANCE AND SECURITY. Owner at its own expense must maintain the Property in good condition, in good repair, and in decent, safe, sanitary, habitable and tenantable living conditions for the benefit of Project Unit occupants. Owner may not commit or permit any waste on or to the Property, and shall prevent and/or rectify any physical deterioration of the Property. Owner must provide adequate ongoing security equipment and services for Project Unit occupants. Owner must maintain the Property in conformance with all applicable state, federal, and local laws, ordinances, codes, and regulations and the Final Management Plan; but Owner's maintenance obligations are not limited only to the standards contained in these laws or the Plan. In the event that Owner fails to maintain the Property in accordance with these standards and after at least seven calendar days prior notice to Owner, the CDC -HA or its agent may, but shall be under no obligation to, enter upon the Property, make such repairs or replacements as are deemed necessary in the CDC-HA's reasonable discretion, and provide for payment thereof. Any amount advanced by the CDC - HA to make such repairs, together with interest thereon from the date of such advance at the same rate of indebtedness as specified in the Note with the highest interest rate for the Project (unless payment of such an interest rate would be contrary to applicable law, in which case interest shall accrue at the highest rate then allowed by applicable law), shall become an additional obligation of Owner to the CDC -HA and shall be secured by the Deed of Trust. 17. REPLACEMENT RESERVES. Concurrently herewith, Owner shall deposit the sum of Two Hundred Thousand and No/100 Dollars ($200,000.00) into a replacement reserve (the "Replacement Reserve") for the Property. In addition, commencing on the month following conversion of the permanent financing, Owner must deposit each year into the Replacement Reserve a minimum amount equal to $300 per unit per year. Replacement reserves may be used for repairs or replacements at the Property. 18. OPERATING RESERVES. Commencing on the month following conversion of the permanent financing, Owner must deposit each month into an operating reserve for the Property a minimum amount equal to [2%] of the gross rental income from the Property, until the operating reserve is equal to at least three months of operating costs (including debt service) of the Property. Owner must maintain the operating reserve at that level, or, following draws on that reserve, must bring the reserve back up to that level from available sources within a reasonable time, for the term of this Regulatory Agreement. The CDC - HA must approve in advance any withdrawal from the replacement reserve or the operating reserve. 19. VACANCIES. Owner is required to use its best efforts to fill vacancies in Project Units as quickly as possible. Excessive or continuing Property vacancies shall constitute a breach of this Regulatory Agreement. 20. INSPECTION AND RECORDS. Owner must maintain records which clearly document Owner's performance of its obligations to operate the Property under the terms of this Regulatory Agreement. Owner must submit any Property -related records to the CDC -HA within ten business days of 537 of 585 Attachment No. 2 the CDC-HA's request. Owner shall permit representatives of the CDC -HA to enter and inspect the Property for compliance with obligations under this Regulatory Agreement upon 24 hours advance notice of such visit to Owner or Owner's management agent, as permitted under applicable law. 21. ANNUAL REPORTS. Owner must submit an annual report to the CDC -HA, on a form provided by the CDC -HA, which, at a minimum, shall state for each Assisted Unit the rental rate (including any rental assistance received on behalf of the tenant household) and the income, household size, race and ethnicity of the occupants. The income information required under this report shall be determined in accordance with the provisions of Exhibit A to this Agreement. In addition, Owner must submit an annual financial report for the Property to the CDC -HA, in a form reasonably satisfactory to the CDC -HA (but the CDC -HA shall not require that such report be audited), which includes an accounting of all revenue (including rental revenue, rental assistance payments and miscellaneous revenue), operating expenses, debt service payments, deposits to reserves and distributions to Owner or other parties. The report shall include certification of the required deposits to, withdrawals from and balances of the replacement and operating reserves. Commencing upon completion of rehabilitation, Owner shall pay to the CDC -HA an annual monitoring fee ("Loan Monitoring Fee"), as determined by the CDC -HA in schedules printed by the CDC - HA from time to time. The Loan Monitoring Fee shall be subject to revision annually. The Loan Monitoring Fee shall be paid to the CDC -HA annually within ten (10) days after the CDC -HA provides a written invoice to Owner for the same. Failure to timely pay the Loan Monitoring Fee shall constitute a material default under the Loan Agreement and this Regulatory Agreement. The Loan Monitoring Fee shall be paid to the CDC -HA as a consideration for the lending of funds by the CDC -HA to the Owner. 22. FEES, TAXES, AND OTHER LEVIES. Owner shall be responsible for payment of all fees, assessments, taxes, charges, liens and levies imposed by any public authority or utility company with respect to the Property, and shall pay such charges prior to delinquency. However, Owner shall not be required to pay any such charge so long as (a) the legality thereof is being contested in good faith and by appropriate proceedings, and (b) Owner maintains reserves adequate to pay any contested liabilities. 23. INSURANCE COVERAGE. Owner is required to have or cause to have in full force and effect during the term of this Regulatory Agreement insurance coverage as required under the Loan Agreement. 24. PROPERTY DAMAGE OR DESTRUCTION. If any building or improvements erected by Owner on the Property is damaged or destroyed, Owner must, at its own cost and expense, repair or restore the Property consistent with the original Plans and Specifications for the Project. Such work shall be commenced within 120 days after the damage or loss occurs and shall be completed within one year thereafter. All insurance proceeds collected for such damage or destruction shall be applied to the cost of such repairs or restorations. GENERAL PROVISIONS 25. TRANSFER AND ENCUMBRANCE OF PROPERTY. During the term of this Regulatory Agreement, and except as otherwise permitted herein or in the Loan Agreement, Owner may not make or permit any sale, agreement to sell, assignment, conveyance, further encumbrance, lease (other than the rental of Project Units to eligible residential tenant occupants), or transfer the Property or any part thereof, including any substantial change in operational or management control over the Property (collectively referred to as "Transfers"), without the prior written consent of the CDC -HA in its sole discretion. Any such unauthorized Transfer shall be void. Notwithstanding the foregoing, the transfers of 538 of 585 Attachment No. 2 limited partnership interests to affiliates and the removal of the general partner as set forth in the Loan Agreement shall be permitted without CDC -HA consent. Owner shall be permitted to refinance senior debt with the prior written consent of the CDC -HA, which consent will not be unreasonably withheld, conditioned or delayed, provided however, Owner shall be permitted to refinance senior debt without the consent of the CDC -HA only if: (i) the monthly payment amount of the new debt does not exceed the monthly payment amount of the senior debt; and (ii) the original principal amount of the new debt does not exceed the then outstanding principal balance of the senior debt. The CDC -HA shall take all steps and execute all documents which may be reasonably necessary to subordinate the applicable deed of trust to the lien securing such new loan, provided the aforementioned conditions are satisfied. 26. DEFAULT AND REMEDIES. A breach of any agreement, obligation, or warranty under this Regulatory Agreement shall be an Owner default. The CDC -HA shall give written notice to Owner of any such default. Said notice shall specify the nature of the act, omission, or deficiency giving rise to the default. In addition, if the default is curable and does not give rise to an imminent danger to health or safety, then the notice shall also specify the action required to cure the default. If the default is not cured within 30 calendar days or the Borrower does not commence such cure within 30 calendar days and diligently pursue the cure to completion within a reasonable time thereafter, the CDC -HA may proceed with all of its rights and remedies under the terms of the Loan Agreement, this Regulatory Agreement or at law, including without limitation, any of the following: A. Bring an action for equitable relief seeking the specific performance by Owner of the terms and conditions of this Regulatory Agreement, and/or enjoining, abating, or preventing any violation of said terms and conditions, and/or seeking declaratory relief; B. Enter upon, take possession of, and manage a Property, either in person, by agent, or by a receiver appointed by a court, and collect any rents, income, deposits, or reserves and apply them to operate the Property, and continue in possession until such time as the CDC -HA in its reasonable judgment determines that Owner is in a position to operate the Property in compliance with this Regulatory Agreement; C. Make such repairs or replacements to a Property as are necessary and provide for payment thereof; or D. Pursue any other remedy allowed at law or in equity. 27. NON -LIABILITY OF OFFICIALS, EMPLOYEES AND AGENTS. No member, official, officer, director, employee, or agent of the CDC -HA or the City shall be personally liable to Owner for any obligation created under the terms of this Regulatory Agreement, except in the case of actual fraud or willful misconduct by such person. 28. INDEMNITY. Notwithstanding the insurance coverage required herein, Owner hereby indemnifies and holds the CDC -HA, the City, and their respective members, officials, officers, directors, employees, and agents (collectively, the "Indemnified Parties") harmless from any losses, damages, liabilities, claims, demands, judgments, actions, court costs, and legal or other expenses (including reasonable attorneys' fees) which an Indemnified Party may incur as a result of (1) Owner's failure to perform any obligations as and when required by this Regulatory Agreement; or (2) any failure of Owner's representations or warranties to be true and complete; or (3) any act or omission by Owner or any contractor, subcontractor, management agent, or supplier with respect to the Property, except to the extent that such losses are caused by the negligence or willful misconduct of the CDC -HA. Owner shall pay 539 of 585 Attachment No. 2 immediately upon an Indemnified Party's demand any amounts owing under this indemnity. The duty of the Owner to indemnify includes the duty to defend the Indemnified Party in any court action, administrative action, or other proceeding brought by any third party arising from the Property. Owner's duty to indemnify an Indemnified Party shall survive the term of this Regulatory Agreement. 29. GOVERNING LAW. This Regulatory Agreement shall be interpreted under and be governed by the laws of the State of California, except for those provisions relating to choice of law and those provisions preempted by federal law. 30. REGULATORY AGREEMENT CONTROLS. In the event that any provisions of this Regulatory Agreement and the Loan Agreement conflict, the terms of this Regulatory Agreement shall control. 31. ATTORNEYS' FEES AND COSTS. In the event that a legal or administrative action is brought to interpret or enforce the terms of this Regulatory Agreement, the prevailing party shall be entitled to recover all reasonable attorneys' fees and costs incurred in such action. 32. TIME. Time is of the essence in the performance of this Regulatory Agreement by Owner and the CDC -HA. 33. CONSENTS AND APPROVALS. Any consent or approval required under this Regulatory Agreement shall not be unreasonably withheld, delayed, or conditioned. 34. NOTICES, DEMANDS AND COMMUNICATIONS. Formal notices, demands and communications between Owner and the CDC -HA shall be given by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, to the principal offices of Owner and the CDC - HA as follows, or if any such office is relocated, to the new address specified by the relocated party: CDC -HA: Community Development Commission -Housing Authority of the City of National City 140 East 12` Street National City, CA 91950-3312 Attn: Executive Director OWNER: Vista Del Sol Apartments, L.P. 9421 Haven Avenue Rancho Cucamonga, CA 91730 35. BINDING UPON SUCCESSORS; COVENANTS TO RUN WITH THE LAND. All provisions of this Regulatory Agreement shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors -in -interest, transferees, and assigns of Owner and the CDC -HA, regardless of any assignment, payment, prepayment, expiration, extinguishment of the Loan or Note, any reconveyance of the Deed of Trust, or any conveyance or transfer of the Property. Any successor -in - interest to Owner and any purchaser or transferee of the Property shall be subject to all of the duties and obligations imposed on Owner under this Regulatory Agreement for the full term of this Regulatory Agreement. The term "Owner" as used in this Regulatory Agreement shall include all such assigns, successors -in -interest, and transferees. Upon the transfer of a Property, the transferring Owner shall be released from all obligations and liabilities hereunder. 540 of 585 Attachment No. 2 The parties intend that the covenants contained in this Regulatory Agreement shall constitute covenants running with the land and shall bind the Property during the term of this Agreement. Owner agrees for itself and for its successors that in the event that a court of competent jurisdiction determines that the covenants herein do not run with the land, such covenants shall be enforced as equitable servitudes against the Property. 36. RELATIONSHIP OF PARTIES. The relationship of Owner and the CDC -HA with respect to the Property during the term of this Regulatory Agreement shall not be construed as a joint venture, equity venture, or partnership. The CDC -HA neither undertakes nor assumes any responsibility or duty to Owner or to any third party with respect to the operation of the Property or the actions of Owner. Except as the CDC -HA may specify in writing, Owner shall have no authority to act as an agent of the CDC -HA or to bind the CDC -HA to any obligation. 37. WAIVER. Any waiver by the CDC -HA of any obligation in this Regulatory Agreement must be in writing. No waiver will be implied from any delay or failure by the CDC -HA to take action on any breach or default of Owner or to pursue any remedy allowed under this Regulatory Agreement or applicable law. Any extension of time granted to Owner to perform any obligation under this Regulatory Agreement shall not operate as a waiver or release from any of its obligations under this Regulatory Agreement. Consent by the CDC -HA to any act or omission by Owner shall not be construed to be a consent to any other or subsequent act or omission or to waive the requirement for the CDC-HA's written consent to future waivers. 38. OTHER AGREEMENTS. Owner represents that it has not entered into any agreements that would restrict or compromise its ability to comply with the terms of this Regulatory Agreement. Owner shall not enter into any agreements that are inconsistent with the terms of this Regulatory Agreement without an express written waiver by the CDC -HA. 39. AMENDMENTS AND MODIFICATIONS. Any amendments or modifications to this Regulatory Agreement must be in writing, and shall be effective only if executed by both Owner and the CDC -HA. 40. SEVERABILITY. Every provision of this Regulatory Agreement is intended to be severable. If any provision of this Agreement is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired. 41. EXHIBIT. The following Exhibit is attached to this Regulatory Agreement and is hereby incorporated into this Loan Agreement by reference: Exhibit A: Occupancy and Rent Restrictions 42. COUNTERPARTS. This Regulatory Agreement may be signed in multiple counterparts, which, when signed by all parties, shall constitute a binding agreement. [SIGNATURE BLOCKS ON NEXT PAGE] 541 of 585 Attachment No. 2 IN WITNESS WHEREOF, the undersigned parties have executed this Regulatory Agreement, effective as of the date first written above. "OWNER" VISTA DEL SOL APARTMENTS, L.P., a California limited partnership By: Vista Del Sol GP LLC, a California limited liability company, its general partner By: National Community Renaissance of California, a California nonprofit public benefit corporation, its managing member By: Its: [SIGNATURES CONTINUED ON FOLLOWING PAGE] 542 of 585 Attachment No. 2 "CDC -HA" THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY, a public body corporate and politic By: Its: Executive Director Approved as to form and legality: By: Deputy City Attorney ISIGNATURE(S) MUST BE ACKNOWLEDGED] 543 of 585 Attachment No. 2 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ) On before me, , Notary Public, personally appeared, , who proved to me the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her their authorized capacity(ies), and that by his/her/their signature (s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature 544 of 585 Attachment No. 2 AMENDED AND RESTATED REGULATORY AGREEMENT EXHIBIT A OCCUPANCY AND RENT RESTRICTIONS 1. Definitions. For purposes of this Exhibit A, the following terms have the following meanings: (i) "Lower Income Household (60% AMI)" shall mean a household earning not greater than sixty percent of Los Angeles County median income, adjusted for family size, as set forth from time to time by regulation of the California Department of Housing and Community Development. (ii) "Rent" shall mean the total of monthly payments by the tenants of a Project Unit for use and occupancy for the Project Unit and facilities associated therewith, including a reasonable allowance for utilities for an adequate level of service, as defined in 25 California Code of Regulations Section 6918. (iii) "Very Low Income Household (50% AMI)" shall mean a household earning not greater than the applicable percentage of Los Angeles County median income for very low income households, adjusted for family size, as set forth by regulation of the California Department of Housing and Community Development, pursuant to Health and Safety Code Section 50105. 2. Number of Affordable Units. Owner agrees to make available, restrict occupancy to, and rent (a) one hundred three (103) of the Project Units to Lower Income (60% AMI) Households, and (b) twenty-seven (27) of the Project Units to Very Low Income (50% AMI) Households, all at an Affordable Rent. At least sixty-two (62) of the Housing Units rented to Lower Income Household (60% AMI) shall be one bedroom units, and at least sixteen (16) of the Housing Units rented to Very Low Income Households (50% AMI) shall be one bedroom units. No more than two units may be set aside for managers and maintenance personnel. 3. Selection of Tenants. Owner shall be responsible for the selection of tenants for the Project Units in compliance with lawful and reasonable criteria, and in accordance with the procedures set forth in the Management Plan which is submitted to and approved by the CDC - HA in accordance with the terms of the Loan Documents. 4. Household Income Requirements. Following the initial lease -up of the Project Units, and annually thereafter, the Owner shall submit to the CDC -HA, at Owner's expense, a summary of the income, household size and rent payable by each of the tenants of the Project Units. At the CDC-HA's request, the Owner shall also provide to the CDC -HA completed income computation and certification forms, in a form acceptable to the CDC -HA, for any such tenant or tenants. Owner shall, prior to the initial leasing of a Project Unit and on an annual basis thereafter, obtain a certification from each tenant leasing a Project Unit demonstrating that such tenant is a Very Low Income Household (50% AMI) or Lower Income Household (60% AMI), as applicable, and meets the eligibility requirements established for the Project Unit. Owner shall 545 of 585 Attachment No. 2 verify the income of each proposed and existing tenant of the Project Units in the Project by at least one of the following methods as appropriate: (i) obtain two (2) paycheck stubs from the person's two (2) most recent pay periods. (ii) obtain a true copy of an income tax return from the person for the most recent tax year in which a return was filed. (iii) obtain an income verification certification from the employer of the person. (iv) obtain an income verification certification from the Social Security Administration and/or the California Department of Social Services if the person receives assistance from such agencies. (v) obtain an alternate form of income verification reasonably acceptable to the Agency, if none of the above forms of verification is available to the Owner. 5. Determination of Affordable Rent for the Project Units. Each Project Unit which is restricted hereunder shall be rented at an "Affordable Rent" to be established as provided herein. (i) The maximum monthly Rent for the Project Units to be rented to Very Low Income Households (50%) shall be established at one -twelfth (1/12) of thirty percent (30%) of fifty percent (50%) of Los Angeles County median income for a family of a size appropriate to the Project Unit (as defined in Health and Safety Code Section 50053). (ii) The maximum monthly Rent for the Project Units to be rented to Lower Income Households (60% AMI) shall be established at one -twelfth (1/12) of thirty percent (30%) of sixty percent (60%) of Los Angeles County median income for a family of a size appropriate to the Project Unit (as defined in Health and Safety Code Section 50053). 6. Occupancy Standards. Occupancy of one bedroom Project Units shall be limited to three persons, occupancy of two bedroom Project Units shall be limited to five persons and occupancy of three bedroom Project Units shall be limited to seven persons. 546 of 585 Attachment No. 2 NO FEE DOCUMENT Government Code Section 27383 Recording requested by: Community Development Commission of the City of National City When recorded mail to: Community Development Commission of the City of National City 140 E. 12"' Street, Suite B National City, CA 91950-3312 Attention: Executive Director DEED OF TRUST, ASSIGNMENT OF RENTS, AND SECURITY AGREEMENT (Securing loan of $7,578,996) This Deed of Trust, Assignment of Rents, and Security Agreement ("Deed of Trust") is dated as of the 12th day of December, 2017, by Vista Del Sol Apartments, L.P., a California limited partnership ("Trustor" or "Borrower), to Fidelity National Title Company as trustee ("Trustee"), for the benefit of Community Development Commission -Housing Authority of the City of National City, a public body, corporate and politic ("Beneficiary" or "Lender"). This Deed of Trust is being executed in order to secure Beneficiary's interest as a governmental agency in ensuring both that public funds loaned for project development are repaid, and that housing projects assisted by public funds are developed and operated in a manner that is consistent with the public interest. GRANT IN TRUST 1. GRANT. Trustor, in consideration of the indebtedness referred to below, hereby irrevocably grants and conveys to Trustee, IN TRUST, WITH POWER OF SALE, for the benefit and security of Beneficiary, all of Trustor's interest in the land and improvements on the property located in the City of National City, County of San Diego, State of California, and described in the attached Exhibit A, incorporated herein by this reference (the "Property"), which is located at the following street address: 1400, 1401, 1410, 1421, 1433, 1436, 1438, 1440, 1445, 1536, 1537, 1538, 1543, 1545 and 1500 Q Avenue, National City, California; TOGETHER WITH all interest, estates or other claims, both in law and in equity which Trustor now has or may hereafter acquire in the Property; all buildings, structures, fixtures, improvements, signs, and landscaping now or hereafter erected or located on the Property, including all equipment and machinery used for supplying or distributing heating, cooling, electricity, gas, water, air, and light, all kitchen and laundry appliances such as washers, dryers, refrigerators, garbage disposals, ovens, ranges, dishwashers, all plumbing and bathroom fixtures, all security and access control equipment, fire prevention and extinguishment equipment, elevators, floor coverings, window coverings, paneling, cabinets, (provided, however, that Trustor shall have the right to remove, if necessary, such fixtures, furnishings, and equipment for the purpose of replacement with similar items of the same quality performing the same functions, which replacements shall themselves become part of this grant); all building material and 547 of 585 Attachment No. 2 equipment either now or hereafter delivered to the Property and intended to be installed therein or any such material and equipment purchased with Loan proceeds whether or not located on the Property; all reserves, accounts, deferred payments, and refunds relating to development on the Property; all rents and income generated by the Property or improvements thereon (subject however to the assignment of rents to Lender contained herein); all leases, subleases and rental agreements covering the Property or any portion thereof now existing or hereafter entered into, and all interests of Trustor in security deposits, advance rentals, accounts, or payments of similar nature with respect to such leases, subleases, or rental agreements; all easements and rights -of -way appurtenant to the Property, including parking and recreational easements, and all interests of Trustor in any land lying within the right-of-way of any street, sidewalks, and areas of land adjacent to or used in connection with the Property; all development rights and credits, air rights, water rights, and oil, gas or mineral rights with respect to the Property; all claims or demands with respect to insurance proceeds, and all awards made for a taking by eminent domain; all interests and rights in any private or government grants, subsidies, loans, or other financing with respect to development on the Property; all interests in personal property used in and about the Property (except furniture and other personal property of occupants of dwelling units on the Property); all intangible property and rights relating to the Property or operations on the Property, including trade names, goodwill, trademarks, and service marks; all government permits, approvals, and map rights related to construction on the Property; all architectural, structural, and mechanical plans, specifications, designs, studies, and data with respect to construction of improvements on the Property; all environmental tests, studies and reports with respect to the Property; all current and future claims and rights of action of Trustor against prior owners and operators of the Property, neighboring property owners and operators, tenants and former tenants, consultants, advisors, and other third parties with respect to environmental or Hazardous Materials contamination and cleanup of the Property under any federal, state, or local ordinances, statutes, regulations, or administrative decisions or common law. All of the foregoing, together with the Property, is herein referred to as the "Security." OBLIGATIONS SECURED 2. Trustor makes this grant for the purpose of securing the following obligations: A. Repayment of the indebtedness of Trustor to Beneficiary in the principal sum of [Seven Million Five Hundred Seventy -Eight Thousand Nine Hundred Ninety -Six and 00/100 Dollars ($7,578,996)] with interest thereon (the "Loan") evidenced by that certain Consolidated, Amended and Restated Promissory Note of even date herewith executed by Trustor (the "Note," on file at the offices of Beneficiary, which is hereby incorporated into this Deed of Trust by this reference), along with any extensions, amendments, modifications, or renewals to the Note; and B. Payment of any sums advanced by Beneficiary to protect the security and priority of this Deed of Trust; and C. Payment of any sums advanced by Beneficiary following a breach of Trustor's obligation to advance such sums and the expiration of any applicable cure period, with interest thereon as provided herein; and D. Performance of every obligation, covenant or agreement of Trustor contained in this Deed of Trust, the Note, and that certain Amended and Restated Loan Agreement of even date herewith executed between Trustor and Beneficiary for the Loan (the "Loan Agreement", on file at the offices of Beneficiary, which is hereby incorporated into this Deed of Trust 548 of 585 Attachment No. 2 by this reference), including all modifications, extensions and renewals of these obligations; and E. Performance of any other obligation or repayment of any other indebtedness of Trustor to Beneficiary, where such evidence of obligation or indebtedness specifically recites that it is secured by this Deed of Trust; F. Performance of any obligations of Trustor under that certain Amended and Restated Regulatory Agreement among Trustor, Beneficiary and the City of National City covering the Project or the Security (the "Regulatory Agreement"). ABSOLUTE ASSIGNMENT OF RENTS AND RIGHT TO POSSESSION 3. ASSIGNMENT. As additional security, Trustor hereby assigns to Beneficiary: (a) all of the rents, revenues, profits, and income from the Security, any deposits now or hereafter in Trustor's possession which have been collected with respect to the Security, and any reserve or capital funds now or hereafter held by Trustor with respect to construction or operation of the Security (collectively, the "Rents"); and (b) the right to enter, take possession of, and manage the Security; provided however that Trustor shall have, before an Event of Default, the exclusive right to possess the Security and to collect Rents and use them in accordance with the Loan Documents. This assignment is intended to be an absolute and present transfer of Trustor's interest in existing and future Rents, effective as of the date of this Deed of Trust. 4. ENFORCEMENT. Upon the happening of an Event of Default which has not been cured in the manner and time provided in the Loan Agreement, Beneficiary may, in addition to other rights and remedies permitted by the Loan Agreement, this Deed of Trust, or applicable law, (a) enter upon, take possession of, and manage the Security, either in person as a mortgagee -in -possession, by agent, or by a receiver appointed by a court, and do any acts which it deems necessary or desirable to preserve the value, marketability or rentability of the Security, (b) collect all Rents, including those past due and unpaid, and apply the same to pay for the costs and expenses of operation of the Security, including attorneys' fees, and pay off any indebtedness secured by this Deed of Trust, all in such order as Beneficiary may determine, and/or (c) enter upon and take possession of the Security. Beneficiary may make, cancel, enforce, and modify leases and rental agreements, obtain and evict tenants, set and modify rent terms, sue for rents due, enter into, modify, or terminate any contracts or agreements, or take any legal action, as it deems necessary with respect to the Rents or to development or operation of the Security. 5. APPOINTMENT OF A RECEIVER. In any action to enforce this assignment, Beneficiary may apply for the appointment of a receiver to take possession of the Security and take whatever measures are necessary to preserve and manage the Security for the benefit of Beneficiary and the public interest. Trustor hereby consents to the appointment of a receiver. The receiver shall have all of the authority over the Security that Beneficiary would have if Beneficiary took possession of the Security under this assignment as a mortgagee -in -possession, including the right to collect and apply Rents and the right to complete construction of improvements. 6. NO WAIVER OF POWER OF SALE. The entering upon and taking possession of the Security and the collection of Rents shall not cure or waive any default or notice of default hereunder or invalidate any act done in response to such default or notice of default and, notwithstanding the continuance in possession of the Security or the collection and application of Rents, Beneficiary shall be entitled to exercise every right provided for in this Deed of Trust or by law upon occurrence of any Event of Default, including the right to exercise the power of sale. 549 of 585 Attachment No. 2 COMMERCIAL CODE SECURITY AGREEMENT 7. GRANT. This Deed of Trust is intended to be a security agreement and financing statement pursuant to the California Commercial Code for any of the items specified above as part of the Security which under applicable law may be subject to a security interest pursuant to the Commercial Code, and Trustor hereby grants Beneficiary a security interest in said items. Beneficiary may file a copy of this Deed of Trust in the real estate records or other appropriate index as a financing statement for any of the items specified as part of the Security. Trustor shall execute and deliver to Beneficiary at Beneficiary's request any financing statements, as well as extensions, renewals, and amendments thereof, and copies of this instrument in such form as Beneficiary may require to perfect a security interest with respect to said items. Trustor shall pay all costs of filing such financing statements and shall pay all reasonable costs of any record searches for financing statements and releases. Without the prior written consent of Beneficiary, Trustor shall not create or permit any other security interest in said items. S. REMEDIES. Upon Trustor's breach of any obligation or agreement in the Loan Documents, Beneficiary shall have the remedies of a secured party under the Commercial Code and at Beneficiary's option may also invoke the remedies provided for elsewhere in this Deed of Trust with respect to said items. Beneficiary may proceed against the items of real property and personal property specified above separately or together and in any order whatsoever. RIGHTS AND OBLIGATIONS OF TRUSTOR 9. PERFORMANCE OF SECURED OBLIGATION. Trustor must perform each obligation secured by this Deed of Trust within the time provided herein. 10. PAYMENT OF PRINCIPAL AND INTEREST. Trustor must pay the principal and interest on the indebtedness evidenced by the Note when required under the Note. 11. MAINTENANCE OF THE SECURITY. Trustor must, at the Trustor's own expense, maintain and preserve the Security or cause the Security to be maintained and preserved as required under the Regulatory Agreement. Trustor may not commit or permit material waste on or to the Security. Trustor may not abandon the Security. Beneficiary shall have no responsibility over maintenance of the Security. In the event Trustor fails to maintain the Security in accordance with the standards in the Regulatory Agreement, Beneficiary may take such action with respect thereto as is provided in the Regulatory Agreement and any amount so advanced by Beneficiary, together with interest thereon from the date of such advance at the same rate of indebtedness as specified in the Note with the highest interest rate (unless payment of such an interest rate would be contrary to applicable law, in which case interest shall accrue at the highest rate then allowed by applicable law), shall become an additional obligation of Trustor to Beneficiary and shall be secured by this Deed of Trust. 12. INSPECTION OF THE SECURITY. Trustor must permit Beneficiary to enter and inspect the Security for compliance with these obligations upon one business day's advance written notice of such visit by Beneficiary to Trustor. 13. LIENS, ENCUMBRANCES, AND CHARGES. Trustor must discharge any lien or encumbrance not approved by Beneficiary in writing that may attain priority over this Deed of Trust, as provided for in the Loan Agreement, provided Trustor will have the right to reasonably contest same in good faith, provided, however, Beneficiary hereby approves those liens and encumbrances approved by Beneficiary as exceptions in the policy of title insurance that insures the validity and priority of this Deed of Trust (the "Permitted Encumbrances"). 550 of 585 Attachment No. 2 14. DEFENSE AND NOTICE OF CLAIMS AND ACTIONS. Trustor must appear in and defend, at its own expense, any action or proceeding purporting to affect the Security and/or the rights of Beneficiary. Trustor must give Beneficiary and Trustee prompt notice in writing of the assertion of any claim, of the filing of any action or proceeding and of any condemnation offer or action with respect to the Security not filed by the Beneficiary or the City of National City. 15. SUITS TO PROTECT THE SECURITY. Beneficiary shall have the power, after at least thirty (30) days' prior written notice to Trustor, to institute and maintain such suits and proceedings as it may deem reasonably necessary: (a) to prevent any impairment of the Security or the rights of Beneficiary, (b) to preserve or protect its interest in the Security and in the Rents, and (c) to restrain the enforcement of or compliance with any governmental legislation, regulation, or order, if the enforcement of or compliance with such legislation, regulation, or order would impair the Security or be prejudicial to the interest of Beneficiary, and provided nothing contained herein will be construed as a waiver of Trustor's rights to contest any relevant governmental legislation, regulation, or order. 16. DAMAGE TO SECURITY. Trustor must give Beneficiary prompt notice in writing of any damage to the Security. If any building or improvements erected on the Property is damaged or destroyed, Trustor shall comply with any relevant provisions of the Regulatory Agreement that may require repair or reconstruction of the Property. 17. TITLE. Trustor warrants that Trustor lawfully has legal title to the Security without any limitation on the right to encumber. 18. GRANTING OF EASEMENTS. Trustor may not grant easements, licenses, rights -of -way or other rights or privileges in the nature of easements with respect to the Security except those reasonably required or desirable for installation and maintenance of utilities including water, gas, electricity, sewer, cable television, telephone, or telecommunications, those required by law and those otherwise necessary or desirable for the use or development of the Property, including the Permitted Encumbrances. 19. TAXES AND LEVIES. Trustor shall pay prior to delinquency, all taxes, fees, assessments, charges, liens and levies imposed by any public authority or utility company which are or may become a lien affecting the Security. However, Trustor shall not be required to pay any tax, assessment, charge or levy so long as (a) the legality thereof shall be promptly and actively contested in good faith and by appropriate proceedings, and (b) Trustor maintains reserves adequate to pay any contested liabilities. In the event that Trustor fails to pay any of the foregoing items and is not contesting such items in good faith, Beneficiary may, but shall be under no obligation to, pay the same, after Beneficiary has provided ten (10) days' written notice to Trustor of such failure to pay and Trustor fails to fully pay such items within the ten (10) day period after receipt of such notice. Any amount so advanced by Beneficiary, together with interest thereon from the date of such advance at the same rate of interest specified in the Note with the highest interest rate (unless payment of such an interest rate would be contrary to applicable law, in which case interest shall accrue at the highest rate then allowed by applicable law), shall become an additional obligation of Trustor to Beneficiary and shall be secured by this Deed of Trust. Beneficiary's payment of any tax, assessment or charge will not be deemed to waive any right Trustor may have to contest any relevant tax, assessment or charge. 20. INSURANCE. Trustor must provide such insurance as required under the Loan Agreement or Regulatory Agreement, or otherwise required under any Senior Lien (as defined herein), provided the rights of Beneficiary in the proceeds of any insurance shall be subject to the rights of any Senior Lender on the terms provided in any Subordination Agreement (as defined herein) or if not specified therein, in the 551 of 585 Attachment No. 2 Regulatory Agreement. In the event Trustor fails to maintain the full insurance coverage required by this Deed of Trust, Beneficiary, after at least ten (10) days' prior written notice to Trustor, may, but shall be under no obligation to, take out the required policies of insurance and pay the premiums on such policies. Any amount so advanced by Beneficiary, together with interest thereon from the date of such advance at the same rate of interest specified in the Note with the highest interest rate (unless payment of such an interest rate would be contrary to applicable law, in which case interest shall accrue at the highest rate then allowed by applicable law), shall become an additional obligation of Trustor to Beneficiary and shall be secured by this Deed of Trust. 21. DAMAGES; INSURANCE AND CONDEMNATION PROCEEDS. (a) All judgments, awards of damages, settlements and compensation made in connection with or in lieu of taking any part of or interest in the Security under assertion of the power of eminent domain ("Funds") are hereby assigned to and shall be paid to Beneficiary. Beneficiary is authorized (but not required) to receive any Funds and is authorized to apply any such Funds to any indebtedness or obligation secured hereby, in such order and manner as Beneficiary determines. Any part of the Funds may be released to Trustor upon such conditions as Beneficiary may impose for its disposition. Application or release of any Funds shall not cure or waive any default under this Deed of Trust. The rights of Beneficiary under this paragraph are expressly subject to the rights of any Senior Lender in any such proceeds. (b) The following (whether now existing or hereafter arising) are all absolutely and irrevocably assigned by Trustor to Beneficiary and, at the request of Beneficiary, shall be paid directly to Beneficiary: (i) all awards of damages and all other compensation payable directly or indirectly by reason of a condemnation or proposed condemnation for public or private use affecting all or any part of, or any interest in, the Subject Property; (ii) all other claims and awards for damages to, or decrease in value of, all or any part of, or any interest in, the Subject Property; (iii) all proceeds of any insurance policies payable by reason of loss sustained to all or any part of the Subject Property; and (iv) all interest which may accrue on any of the foregoing. Subject to applicable law, and without regard to any requirement contained in Section 5.7(d), Beneficiary may at its discretion apply all or any of the proceeds it receives to its expenses in settling, prosecuting or defending any claim and may apply the balance to the Secured Obligations in any order, and/or Beneficiary may release all or any part of the proceeds to Trustor upon any conditions Beneficiary may impose. Beneficiary may commence, appear in, defend or prosecute any assigned claim or action and may adjust, compromise, settle and collect all claims and awards assigned to Beneficiary; provided, however, that if Beneficiary fails to pursue any such claim, Beneficiary shall assign or permit Trustor to pursue such claim upon Trustor's request, and in no event shall Beneficiary be responsible for any failure to collect any claim or award, regardless of the cause of the failure. (c) Beneficiary shall permit insurance or condemnation proceeds held by Beneficiary to be used for repair or restoration but may condition such application upon reasonable conditions, including, without limitation: (i) the deposit with Beneficiary of such additional funds which Beneficiary determines are needed to pay all cost of the repair or restoration, (including, without limitation, taxes, financing charges, insurance and rent during the repair period); (ii) the establishment of an arrangement for lien releases and disbursement of funds acceptable to Beneficiary; (iii) the delivery to Beneficiary of plans and specifications for the work, a contract for the work signed by a contractor acceptable to Beneficiary, a cost breakdown for the work and a payment and performance bond for the work, all of which shall be acceptable to Beneficiary; and (iv) the delivery to Beneficiary of evidence acceptable to Beneficiary (aa) that after completion of the work the income from the Subject Property will be sufficient to pay all expenses and debt service for 552 of 585 Attachment No. 2 the Subject Property; (bb) of the continuation of Leases acceptable to and required by Beneficiary; (cc) that upon completion of the work, the size, capacity and total value of the Subject Property will be at least as great as it was before the damage or condemnation occurred, subject to City laws, ordinances, regulations and standards then in effect; (dd) that there has been no material adverse change in the fmancial condition or credit of Trustor since the date of this Deed of Trust; and (ee) the satisfaction of any additional conditions that Beneficiary may reasonably establish to protect its security. Trustor hereby acknowledges that the conditions described above are reasonable. 22. ACCELERATION ON TRANSFER OF SECURITY. In the event that Trustor, without the prior written consent of Beneficiary, sells, agrees to sell, transfers, or conveys its interest in the Security or any part thereof in violation of the Loan Agreement, Beneficiary may, at its option, declare all sums secured by this Deed of Trust to be immediately due and payable. 23. RECONVEYANCE BY TRUSTEE. This trust is intended to continue for the entire term of the Loan. Upon written request of Beneficiary stating that all sums secured by this Deed of Trust have been paid and upon surrender of this Deed of Trust to Trustee for cancellation and retention, and upon payment by Trustor of Trustee's reasonable fees, Trustee shall reconvey the Security to Trustor, or to the person or persons legally entitled thereto. DEFAULT AND REMEDIES 24. EVENTS OF DEFAULT. Any of the events listed in the Loan Agreement as an Event of Default shall also constitute an Event of Default under this Deed of Trust, including, but not limited to, (1) Trustor's failure to pay within ten (10) days after written notice of nonpayment by Beneficiary, any sums payable under this Deed of Trust, the Note, or the Loan Agreement, subject to any cure or grace period herein or therein; (2) Trustor's failure to observe or to perform any of its other covenants, agreements or obligations under this Deed of Trust, the Note, or the Loan Agreement; or (3) Trustor's failure to make any payment or perform any of its other covenants, agreements, or obligations under any Senior Lien (as defined herein) with respect to the Project or the Security, after expiration of any applicable notice and/or cure period provided in the relevant Senior Lien. Trustor shall have the full cure period provided in the Loan Agreement for defaults thereunder, to cure any default under this Deed of Trust. 25. RIGHTS OF OTHER LENDERS. Beneficiary shall provide concurrent notice of any default under this Deed of Trust to any lender having a lien secured by the Property of which Beneficiary has written notice, and such lender will have the longer of (a) any cure period provided in the Loan Documents or (b) thirty (30) days after the date of any such notice, to cure the relevant default. 26. ACCELERATION OF MATURITY. Upon the happening of an Event of Default which has not been cured within the times and in the manner provided in the Loan Agreement or in this Deed of Trust, Beneficiary may declare all sums advanced to Trustor under the Note and this Deed of Trust immediately due and payable. 27. BENEFICIARY'S REMEDIES. Upon the happening of an Event of Default which has not been cured within the times and in the manner provided in the Loan Agreement, Beneficiary may, in addition to other rights and remedies permitted by the Loan Agreement, the Note, or applicable law, and subject to the rights of any Senior Lender proceed with any of the following remedies: 553 of 585 Attachment No. 2 A. Enforce the assignment of rents and right to possession as provided for in this Deed of Trust, and/or seek appointment of a receiver to take over possession of the Security and collect Rents; B. Enter the Security and take any actions necessary in its judgment to complete rehabilitation of the Security as permitted under the Loan Agreement and the assignment of rents and right to possession in this Deed of Trust, either in person or through a receiver appointed by a court; D. Commence an action to foreclose, judicially or nonjudicially, this Deed of Trust and/or seek appointment of a receiver from a court of competent jurisdiction with the authority to protect Beneficiary's interests in the Security, including the authority to complete construction of improvements; E. Deliver to Trustee a written declaration of Default and demand for sale, and a written Notice of Default and election to cause Trustor's interest in the Security to be sold, which notice Trustee or Beneficiary shall duly file for record in the official records of San Diego County, and exercise its power of sale as provided for below; or F. Pursue any other rights and remedies allowed at law or in equity. 28. FORECLOSURE BY POWER OF SALE. Should Beneficiary elect to foreclose by exercise of the power of sale contained in this Deed of Trust, Beneficiary shall notify Trustee. Upon receipt of such notice from Beneficiary, Trustee shall cause to be recorded, published and delivered to Trustor such Notice of Default and Election to Sell as then required by law and by this Deed of Trust. Trustee shall, without demand on Trustor, after lapse of such time as may then be required by law and after recordation of such Notice of Default and after Notice of Sale having been given as required by law, sell the Security, at the time and place of sale fixed by it in the Notice of Sale. The sale of the Security shall be as a whole or in separate lots or parcels or items as Trustee shall deem expedient and in such order as it may determine unless specified otherwise by Trustor, at public auction to the highest bidder for cash in lawful money of the United States payable at the time of sale. Trustee shall deliver to the purchaser its deed or deeds conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters of facts shall be conclusive proof of the truthfulness thereof. Any person, including, without limitation, Trustor, Trustee, or Beneficiary, may purchase at the sale. Trustee may postpone sale of the Security by public announcement at such time and place of sale, and from time to time may postpone the sale by public announcement at the time and place fixed by the preceding postponement, or may, in its discretion, give a new Notice of Sale. After deducting all reasonable costs and fees of Trustee, including costs of evidence of title in connection with such sale, Trustee shall apply the proceeds of sale as follows: (i) first, to payment of all sums then secured by this Deed of Trust, in such order and amounts as Beneficiary in its sole discretion determines, and (ii) the remainder, if any, to the person or persons legally entitled thereto. 29. REMEDIES CUMULATIVE. No right, power or remedy conferred upon Beneficiary by this Deed of Trust is intended to be exclusive of any other rights, powers or remedies, but each such right, power and remedy shall be cumulative and concurrent and shall be in addition to any other right, power and remedy given hereunder or existing at law or in equity. 554 of 585 Attachment No. 2 GENERAL PROVISIONS 30. GOVERNING LAW. This Deed of Trust shall be interpreted under and governed by the laws of the State of California, except for those provisions relating to choice of law and those provisions preempted by federal law. 31. ATTORNEYS' FEES AND COSTS. In the event of any Event of Default, or any legal or administrative action is commenced to interpret or to enforce the terms of this Deed of Trust, the prevailing party in such action shall be entitled to recover all reasonable attorneys' fees and costs in such action. Any such amounts paid by Beneficiary shall be added to the indebtedness secured by the lien of this Deed of Trust. 32. STATEMENT OF OBLIGATION. Beneficiary may collect a reasonable fee not to exceed the maximum allowable under applicable law for furnishing a statement of obligations as provided in the California Civil Code. 33. NOTICES, DEMANDS AND COMMUNICATIONS. Formal notices, demands and communications between Trustor and Beneficiary shall be given as provided for in the Loan Agreement. 34. BINDING UPON SUCCESSORS. All provisions of this Deed of Trust shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors -in -interest, transferees, and assigns of Trustor, Trustee, and Beneficiary. 35. WAIVER. Any waiver by Beneficiary of any obligation of Trustor in this Deed of Trust must be in writing. No waiver will be implied from any delay or failure by Beneficiary to take action on any breach or default of Trustor or to pursue any remedy allowed under the Deed of Trust or applicable law. Any extension of time granted to Trustor to perform any obligation under this Deed of Trust shall not operate as a waiver or release Trustor from any of its obligations under this Deed of Trust. Consent by Beneficiary to any act or omission by Trustor shall not be construed as a consent to any other or subsequent act or omission or to waive the requirement for Beneficiary's written consent to future waivers. 36. AMENDMENTS AND MODIFICATIONS. Any amendments or modifications to this Deed of Trust must be in writing, and shall be made only if mutually agreed upon by Beneficiary and Trustor. 37. LOAN AGREEMENT CONTROLS. If there is any contradiction between this instrument and the Loan Agreement, the terms of the Loan Agreement shall control, except that Trustor shall have no defense or claim that this instrument does not establish a valid lien on the Property or the Security. 38. DEFINITIONS. Capitalized terms not otherwise defined in this Deed of Trust shall have the same meaning as defined in the Loan Agreement. 39. PROOFS OF CLAIM. In the case of any receivership, insolvency, bankruptcy, reorganization, arrangement, adjustment, recomposition or other proceedings affecting Trustor, its creditors or its property, Trustee, to the extent permitted by law, shall be entitled to file such proofs of claim and other documents as may be necessary or advisable in order to have the claims of Beneficiary allowed in such proceedings and for any additional amount which may become due and payable by Trustor hereunder after such date. 555 of 585 Attachment No. 2 40. SEVERABILITY. Every provision of this Deed of Trust is intended to be severable. If any term or provision of this Deed of Trust is declared to be illegal, invalid, or unenforceable by a court of competent jurisdiction, the legality, validity, and enforceability of the remaining provisions shall not be affected. If the lien of this Deed of Trust is invalid or unenforceable as to any part of the debt or the Security, the unsecured or partially secured portion of the debt and all payments made on the debt (whether voluntary or under foreclosure or other enforcement action or procedure) shall be considered to have been first applied to the payment of that portion of the debt which is not secured by the lien of this Deed of Trust. 41. SUBSTITUTION OF TRUSTEES. Beneficiary may from time to time appoint another trustee to act in the place of Trustee or any successor. Upon such appointment and without conveyance, the successor trustee shall be vested with all title, powers, and duties conferred upon Trustee. Each such appointment and substitution shall be made by a written instrument executed by Beneficiary containing reference to this Deed of Trust and its place of record, which when duly recorded in the San Diego County Office of the Recorder shall be conclusive proof of proper appointment of the successor trustee. 42. ACCEPTANCE BY TRUSTEE. Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made public record as provided by law. Except as otherwise provided by law, Trustee is not obligated to notify any party hereto of pending sale under this Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the day and year first above written. "TRUSTOR" VISTA DEL SOL APARTMENTS, L.P., a California limited partnership By: Vista Del Sol GP LLC, a California limited liability company, its general partner By: National Community Renaissance of California, a California nonprofit public benefit corporation, its manager By: Its: ISIGNATURE(S) MUST BE ACKNOWLEDGED] 556 of 585 Attachment No. 2 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of On before me, , Notary Public, personally appeared, , who proved to me the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her their authorized capacity(ies), and that by his/her/their signature (s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature 557 of 585 Attachment No. 2 EXHIBIT A PROPERTY DESCRIPTION (Vista Del Sol Apartments) (attached) 558 of 585 Attachment No. 2 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Ann J. McGill Kutak Rock LLP 1650 Farnam Street Omaha, Nebraska 68102 SUBORDINATION AGREEMENT THIS SUBORDINATION AGREEMENT (this "Agreement") is made effective as of December 1, 2017 by and between the CALIFORNIA MUNICIPAL FINANCE AUTHORITY, a public body, corporate and politic, duly organized and existing under the laws of the State of California (the "Authority") and the COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY, a public body, corporate and politic (the "Subordinate Lender"). RECITALS A. Vista del Sol Apartments, L.P., a California limited partnership ("Borrower") is the owner of a fee simple interest in that certain real property described in Exhibit A attached hereto (the "Land") upon which Borrower intends to rehabilitate a 132-unit multifamily housing facility and related facilities (the "Improvements" and together with the Land, collectively, the "Property"). B. Pursuant to the terms of a Continuing Covenant Agreement dated December 1, 2017 (as amended, modified or supplemented from time to time, the "Continuing Covenant Agreement"), Borrower has requested that Pacific Western Bank, a California state -chartered bank (the "Bank") make a loan (the "Bank Loan") to the Authority, the proceeds of which will be used by the Authority to make a loan to Borrower in the amount of Sixteen Million and No/100 Dollars ($16,000,000.00) (the "Authority Loan"), which Authority Loan will be evidenced by a promissory note from Borrower to the Authority December 1, 2017 (as amended, modified or supplemented from time to time, the "Borrower Note"). The Borrower's obligations under the Borrower Note and the Continuing Covenant Agreement will be secured by a Deed of Trust, Security Agreement, Absolute Assignment of Leases and Rents and Fixture Filing dated as of the date hereof and recorded concurrently herewith (as amended, modified or supplemented from time to time, the "Senior Deed of Trust"), encumbering the Property and certain other property as more particularly described in the Deed of Trust. The Bank Loan and the Authority Loan shall sometimes be collectively referred to herein as the "Senior Loan." The Authority and the Bank shall be collectively referred to herein as "Senior Lender." The Borrower Note, the Continuing Covenant Agreement, the Senior Deed of Trust, this Agreement and any of the other documents evidencing or related to the Senior Loan are collectively referred to herein as the "Senior Loan Documents." 559 of 585 Attachment No. 2 C. Subordinate Lender previously made a loan to Borrower's successor -in -interest, which loan is being assumed concurrently herewith, pursuant to the terms of an Amended and Restated Loan Agreement dated December 12, 2017 (as amended, modified, or supplemented from time to time, the "Subordinate Loan Agreement"), in the amount of $7,407,796.00 (the "Subordinate Loan"), which Subordinate Loan will be evidenced by a Consolidated, Amended and Restated Promissory Note Secured by a Deed of Trust dated December 12, 2017 (as amended, modified, or supplemented from time to time, the "Subordinate Note"). As a condition of the Subordinate Loan, Borrower will be required to execute and record that certain Amended and Restated Regulatory Agreement dated December 12, 2017, recorded concurrently herewith (the "Regulatory Agreement"). The Borrower's obligations under the Subordinate Loan Agreement, Subordinate Note and Regulatory Agreement will be secured by a Deed of Trust, Assignment of Rents and Security Agreement dated as of December 12, 2017, recorded concurrently herewith (as amended, modified or supplemented from time to time, the "Subordinate Deed of Trust") encumbering the Property and certain other property as more particularly described in the Subordinate Deed of Trust. The Subordinate Loan Agreement, Subordinate Note, Regulatory Agreement, Subordinate Deed of Trust and any of the other documents evidencing or related to the Subordinate Loan shall be collectively referred to herein as the "Subordinate Loan Documents." D. The execution and delivery of this Agreement by Subordinate Lender is a condition precedent to the making of the Senior Loan. AGREEMENTS NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows: 1. Definitions. As used herein, the following terms have the meanings set forth below: "Bankruptcy Proceeding" means any bankruptcy, reorganization, insolvency, composition, restructuring, dissolution, liquidation, receivership, assignment for the benefit of creditors, or custodianship action or proceeding under any federal or state law with respect to Borrower, any guarantor of any of the Senior Loan, any of their respective properties, or any of their respective partners, members, officers, directors, or shareholders. "Business Day(s)" shall have the meaning assigned to such term in the Continuing Covenant Agreement. "Casualty" means the occurrence of damage to or loss of all or any portion of the Property by fire or other casualty. "Condemnation" means any action or proceeding or notice relating to any proposed or actual condemnation or other taking, or conveyance in lieu thereof, of all or any part of the Project, whether direct or indirect. "Enforcement Action" means any of the following actions taken by or at the direction of Subordinate Lender: the acceleration of all or any part of the Subordinate Loan, the advertising 560 of 585 Attachment No. 2 of or commencement of any foreclosure or trustee's sale proceedings, the exercise of any power of sale, the acceptance of a deed or assignment in lieu of foreclosure or sale, the collecting of Rents, the obtaining of or seeking of the appointment of a receiver, the seeking of default interest, the taking of possession or control of any of the Property, the commencement of any suit or other legal, administrative, or arbitration proceeding based upon the Subordinate Loan Documents, the exercising of any banker's lien or rights of set-off or recoupment, or the exercise of any other remedial action against Borrower, any other party liable for the Subordinate Loan or obligated under any of the Subordinate Loan Documents, or the Property. "Enforcement Action Notice" means a written notice from Subordinate Lender to Senior Lender, given following one or more Subordinate Loan Default(s) and the expiration of any notice or cure periods provided for such Subordinate Loan Default(s) in the Subordinate Loan Documents, setting forth in reasonable detail the Subordinate Loan Default(s) and the Enforcement Actions proposed to be taken by Subordinate Lender. "Loss Proceeds" means all monies received or to be received under any insurance policy, from any condemning authority, or from any other source, as a result or any Condemnation or Casualty. "Rents" will have the meaning given to that term in the Continuing Covenant Agreement. "Senior Loan Default" means any act, failure to act, event, condition, or occurrence which constitutes, or which with the giving of Notice or the passage of time, or both, would constitute, an "Event of Default" as defined in the Senior Loan Documents. "Subordinate Loan Default" means any act, failure to act, event, condition, or occurrence which allows (but for any contrary provision of this Agreement), or which with the giving of Notice or the passage of time, or both, would allow (but for any contrary provision of this Agreement), Subordinate Lender to take an Enforcement Action. 2. Subordination of Subordinate Loan. a. The Subordinate Loan is and will at all times continue to be subject and subordinate in right of payment to the prior payment in full of the Senior Loan. b. Until the occurrence of an Event of Default (as defined in the Senior Loan Documents) under the Senior Loan Documents, Subordinate Lender will be entitled to retain for its own account all payments made on account of the principal of and interest on the Subordinate Loan in accordance with the requirements of the Subordinate Loan Documents. However, immediately upon Subordinate Lender's receipt of Notice (as defined herein) or actual knowledge of an Event of Default, Subordinate Lender will not accept any payments on account of the Subordinate Loan, and the provisions of Section 2(c) of this Agreement will apply. Subordinate Lender acknowledges that a Subordinate Loan Default constitutes a Senior Loan Default. Accordingly, upon the occurrence of a Subordinate Loan Default, Subordinate Lender will be deemed to have actual knowledge of a Senior Loan Default. 561 of 585 Attachment No. 2 c. If (i) Subordinate Lender receives any payment, property, or asset of any kind or in any form on account of the Subordinate Loan (including any proceeds from any Enforcement Action) after a Senior Loan Default of which such Subordinate Lender has actual knowledge (or is deemed to have actual knowledge as provided in 2(b) above) or has been given Notice, or (ii) Subordinate Lender receives, voluntarily or involuntarily, by operation of law or otherwise, any payment, property, or asset in or in connection with any Bankruptcy Proceeding, such payment, property, or asset will be received and held in trust for Senior Lender. Subordinate Lender will promptly remit, in kind and properly endorsed as necessary, all such payments, properties, and assets to Senior Lender. Senior Lender will apply any payment, asset, or property so received from Subordinate Lender to the Senior Loan in such order, amount (with respect to any asset or property other than immediately available funds), and manner as Senior Lender determines in its sole and absolute discretion. d. Without limiting the complete subordination of the Subordinate Loan to the payment in full of the Senior Loan, in any Bankruptcy Proceeding, upon any payment or distribution (whether in cash, property, securities, or otherwise) to creditors (i) the Senior Loan will first be paid in full in cash before Subordinate Lender will be entitled to receive any payment or other distribution on account of or in respect of the Subordinate Loan, and (ii) until all of the Senior Loan is paid in full in cash, any payment or distribution to which Subordinate Lender would be entitled but for this Agreement (whether in cash, property, or other assets) will be made to Senior Lender. e. The subordination of the Subordinate Loan will continue if any payment under the Senior Loan Documents (whether by or on behalf of Borrower, as proceeds of security or enforcement of any right of set-off or otherwise) is for any reason repaid or returned to Borrower or its insolvent estate, or avoided, set aside or required to be paid to Borrower, a trustee, receiver or other similar party under any bankruptcy, insolvency, receivership or similar law. In such event, any or all of the Senior Loan originally intended to be satisfied will be deemed to be reinstated and outstanding to the extent of any repayment, return, or other action, as if such payment on account of the Senior Loan had not been made. 3. Subordination of Subordinate Loan Documents. a. Each of the Subordinate Loan Documents is, and will at all times remain, subject and subordinate in all respects to the liens, terms, covenants, conditions, operations, and effects of each of the Senior Loan Documents. b. The subordination of the Subordinate Loan Documents and of the Subordinate Loan will apply and continue notwithstanding (i) the actual date and time of execution, delivery, recording, filing or perfection of each of the Senior Loan Documents and of each of the Subordinate Loan Documents, and (ii) the availability of any collateral to Senior Lender, including the availability of any collateral other than the Property. c. By reason of, and without in any way limiting, the full subordination of the Subordinate Loan and the Subordinate Loan Documents provided for in this Agreement, all rights and claims of Subordinate Lender under the Subordinate Loan Documents in or to all or 562 of 585 Attachment No. 2 any portion of the Property are expressly subject and subordinate in all respects to the rights and claims of Senior Lender under the Senior Loan Documents in or to the Property. d. If Subordinate Lender, by indemnification, subrogation or otherwise, acquires any lien, estate, right or other interest in any of the Property, then that lien, estate, right or other interest will be fully subject and subordinate to the receipt by Senior Lender of payment in full of the Senior Loan, and to the Senior Loan Documents, to the same extent as the Subordinate Loan and the Subordinate Loan Documents are subordinate pursuant to this Agreement. 4. Additional Representations and Covenants. a. Subordinate Lender represents and warrants with respect to the Subordinate Loan that each of the following is true: i. Subordinate Lender is now the owner and holder of the Subordinate Loan Documents. ii. The Subordinate Loan Documents are now in full force and effect. iii. The Subordinate Loan Documents have not been modified or amended. iv. To the best of its knowledge, no Subordinate Loan Default has occurred with respect to the Subordinate Loan. v. To the best of its knowledge, none of the rights of Subordinate Lender under any of the Subordinate Loan Documents are subject to the rights of any third parties, by way of subrogation, indemnification or otherwise. b. Without the prior written consent of Senior Lender in each instance, Subordinate Lender will not do any of the following: i. Amend, modify, waive, extend, renew, or replace any provision of any of the Subordinate Loan Documents. ii. Pledge, assign, transfer, convey, or sell any interest in the Subordinate Loan or any of the Subordinate Loan Documents. iii. Accept any payment on account of the Subordinate Loan other than a regularly scheduled payment of interest or principal and interest made not earlier than 10 days prior to its due date, or as expressly authorized in Section 4(i) below. iv. Take any action which has the effect of increasing the amount of the Subordinate Loan. v. Appear in, defend or bring any action to protect Subordinate Lender's interest in the Property. 563 of 585 Attachment No. 2 vi. Take any action concerning the presence of any Hazardous Substance affecting the Property. As used in this Section 4(b), the term "Hazardous Substance" means and includes asbestos or any substance containing asbestos, polychlorinated biphenyls, any explosives, radioactive materials, chemicals known or suspected to cause cancer or reproductive toxicity, pollutants, effluents, contaminants, emissions, infectious wastes, any petroleum or petroleum -derived waste or product or related materials and any items defined as hazardous, special or toxic materials, substances or waste under any Hazardous Substance Law, or any such material which shall be removed from the Property pursuant to any administrative order or enforcement proceeding or in order to place the Property in a condition that is suitable for ordinary use. "Hazardous Substance Law" collectively means and includes any present and future local, state, federal or international law or treaty relating to public health, safety or the environment including without limitation, the Resource Conservation and Recovery Act, as amended ("RCRA"), 42 U.S.C. § 6901 et seq., the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), 42 U.S.C. § 9601 et seq., as amended by the Superfund Amendments and Reauthorization Act of 1986 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. § 1801 et seq., the Clean Water Act, 33 U.S.C. § 1251 et seq., the Clean Air Act, as amended 42 U.S.C. § 7401 at seq., the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., the Safe Drinking Water Act, 42 U.S.C. § 300f et seq., the Uranium Mill Tailings Radiation Control Act, 42 U.S.C. § 7901 et seq., the Occupational Safety and Health Act, 29 U.S.C. § 655 et seq., the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. § 136 et seq., the National Environmental Policy Act, 42 U.S.C. § 4321 et seq., the Noise Control Act, 42 U.S.C. § 4901 et seq., and the Emergency Planning and Community Right -to -Know Act, 42 U.S.C. § 11001 et seq., and the amendments, regulations, orders, decrees, permits, licenses or deed restrictions now or hereafter promulgated thereunder, and any similar law, regulation, order, decree, permit, license or deed restriction of the State of California. c. Subordinate Lender will deliver to Senior Lender a copy of each Notice received or delivered by Subordinate Lender pursuant to the Subordinate Loan Documents or in connection with the Subordinate Loan, simultaneously with Subordinate Lender's delivery or receipt of such Notice. Senior Lender will deliver to Subordinate Lender in the manner required in Section 5(b) a copy of each Notice of a Senior Loan Default delivered to Borrower by Senior Lender. Neither giving nor failing to give a Notice to Senior Lender or Subordinate Lender pursuant to this Section 4(c) will affect the validity of any Notice given by Senior Lender or Subordinate Lender to Borrower, as between Borrower and such of Senior Lender or Subordinate Lender as provided the Notice to Borrower. d. Without the prior written consent of Senior Lender in each instance, Subordinate Lender will not commence, or join with any other creditor in commencing, any Bankruptcy Proceeding. In the event of a Bankruptcy Proceeding, Subordinate Lender will not vote 564 of 585 Attachment No. 2 affirmatively in favor of any plan of reorganization or liquidation unless Senior Lender has also voted affirmatively in favor of such plan. In the event of any Bankruptcy Proceeding, Subordinate Lender will not contest the continued accrual of interest on the Senior Loan, in accordance with and at the rates specified in the Senior Loan Documents, both for periods before and for periods after the commencement of such Bankruptcy Proceedings. e. [Reserved.] f. All requirements pertaining to insurance under the Subordinate Loan Documents (including requirements relating to amounts and types of coverages, deductibles and special endorsements) will be deemed satisfied if Borrower complies with the insurance requirements under the Senior Loan Documents and of Senior Lender. All original policies of insurance required pursuant to the Senior Loan Documents will be held by Senior Lender. Nothing in this Section 4(f) will preclude Subordinate Lender from requiring that it be named as a mortgagee and loss payee, as its interest may appear, under all policies of property damage insurance maintained by Borrower with respect to the Property, provided such action does not affect the priority of payment of Loss Proceeds, or that Subordinate Lender be named as an additional insured under all policies of liability insurance maintained by Borrower with respect to the Property. g. apply: In the event of a Condemnation or a Casualty, all of the following provisions will The rights of Subordinate Lender to participate in any proceeding or action relating to a Condemnation or a Casualty, or to participate or join in any settlement of, or to adjust, any claims resulting from a Condemnation or a Casualty, will be and remain subordinate in all respects to Senior Lender's rights under the Senior Loan Documents with respect thereto, and Subordinate Lender will be bound by any settlement or adjustment of a claim resulting from a Condemnation or a Casualty made by Senior Lender. ii. All Loss Proceeds will be applied either to payment of the costs and expenses of restoration or to payment on account of the Senior Loan, as and in the manner determined by Senior Lender in its sole discretion. iii. If Senior Lender applies or releases Loss Proceeds for the purposes of restoration of the Property, then Subordinate Lender will release for such purpose all of their right, title and interest, if any, in and to such Loss Proceeds. If Senior Lender holds Loss Proceeds, or monitors the disbursement thereof, Subordinate Lender will not do so. Nothing contained in this Agreement will be deemed to require Senior Lender to act for or on behalf of Subordinate Lender in connection with any restoration or to hold or monitor any Loss Proceeds in trust for or otherwise on behalf of Subordinate Lender, and all or any Loss Proceeds may be commingled with any funds of Senior Lender. 565 of 585 Attachment No. 2 iv. If Senior Lender elects to apply Loss Proceeds to payment on account of the Senior Loan, and if the application of such Loss Proceeds results in the payment in full of the entire Senior Loan, any remaining Loss Proceeds held by Senior Lender will be paid to Subordinate Lender unless another party has asserted a claim to the remaining Loss Proceeds. h. Except as provided in this Section 4(h), and regardless of any contrary provision in the Subordinate Loan Documents, Subordinate Lender will not collect payments for the purpose of escrowing for any cost or expense related to the Property ("Impositions") or for any portion of the Subordinate Loan. However, if Senior Lender is not collecting escrow payments for one or more Impositions, Subordinate Lender may collect escrow payments for such Impositions; provided that all payments so collected by Subordinate Lender will be held in trust by Subordinate Lender to be applied only to the payment of such Impositions. i. Within ten (10) Business Days after request by Senior Lender, Subordinate Lender will furnish Senior Lender with a statement, duly acknowledged and certified setting forth the then -current amount and terms of the Subordinate Loan, confirming that there exists no default under the Subordinate Loan Documents (or describing any default that does exist), and certifying to such other information with respect to the Subordinate Loan as Senior Lender may request. j. Senior Lender may amend, waive, postpone, extend, renew, replace, reduce or otherwise modify any provisions of the Senior Loan Documents without the necessity of obtaining the consent of or providing Notice to Subordinate Lender, and without affecting any of the provisions of this Agreement. Notwithstanding the foregoing, Senior Lender may not modify any provision of the Senior Loan Documents that increases the amount of the Senior Loan, except for increases in the Senior Loan that result from advances made by Senior Lender to protect the security or lien priority of Senior Lender under the Senior Loan Documents or to cure defaults under the Subordinate Loan Documents. 5. Default under Loan Documents. a. For a period of ninety (90) days following delivery to Senior Lender of an Enforcement Action Notice, Senior Lender will have the right, but not the obligation, to cure any Subordinate Loan Default, provided that if such Subordinate Loan Default is a non -monetary default and is not capable of being cured within such 90-day period and Senior Lender has commenced and is diligently pursuing such cure to completion, Senior Lender will have such additional period of time as may be required to cure such Subordinate Loan Default or until such time, if ever, as Senior Lender (i) discontinues its pursuit of any cure and/or (ii) delivers to Subordinate Lender Senior Lender's written consent to the Enforcement Action described in the Enforcement Action Notice. Senior Lender will not be subrogated to the rights of Subordinate Lender under the Subordinate Loan Documents by reason of Senior Lender having cured any Subordinate Loan Default. However, Subordinate Lender acknowledges that all amounts advanced or expended by Senior Lender in accordance with the Senior Loan Documents or to cure a Subordinate Loan Default will be added to and become a part of the Senior Loan and will be secured by the lien of the Senior Deed of Trust. 566 of 585 Attachment No. 2 b. Senior Lender will deliver to Subordinate Lender a copy of any Notice sent by Senior Lender to Borrower of a Senior Loan Default within ten (10) Business Days of sending such Notice to Borrower. Failure of Senior Lender to send Notice to Subordinate Lender will not prevent the exercise of Senior Lender's rights and remedies under the Senior Loan Documents. Subordinate Lender will have the right, but not the obligation, to cure any monetary Senior Loan Default within thirty (30) days following the date of such Notice; provided, however, that Senior Lender will be entitled during such 30-day period to continue to pursue its remedies under the Senior Loan Documents. Subordinate Lender may, within ninety (90) days after the date of the Notice, cure a non -monetary Senior Loan Default if during such 90-day period, Subordinate Lender keeps current all payments required by the Senior Loan Documents. If such a non - monetary Senior Loan Default creates an unacceptable level of risk relative to the Property, or Senior Lender's secured position relative to the Property, as determined by Senior Lender in its sole discretion, then during such 90-day period Senior Lender may exercise all available rights and remedies to protect and preserve the Property and the Rents, revenues and other proceeds from the Property. Subordinate Lender will not be subrogated to the rights of Senior Lender under the Senior Loan Documents by reason of Subordinate Lender having cured any Senior Loan Default. However, Senior Lender acknowledges that all amounts paid by Subordinate Lender to Senior Lender to cure a Senior Loan Default will be deemed to have been advanced by such Subordinate Lender pursuant to, and will be secured by the lien of, the Subordinate Loan Documents. Notwithstanding anything in this Section 5(b) to the contrary, Subordinate Lender's right to cure any Senior Loan Default will terminate immediately upon the occurrence of any Bankruptcy Proceeding. c. In the event of a Subordinate Loan Default, Subordinate Lender will not commence any Enforcement Action until ninety (90) days after Subordinate Lender has delivered to Senior Lender an Enforcement Action Notice with respect to such Enforcement Action, provided that during such 90-day period or such longer period as provided in Section 5(a), Subordinate Lender will be entitled to seek specific performance to enforce covenants and agreements of Borrower relating to income, rent, or affordability restrictions contained in the Regulatory Agreement, subject to Senior Lender's right to cure a Subordinate Loan Default set forth in Section 5(a). Subordinate Lender may not commence any other Enforcement Action, including any foreclosure action under the Subordinate Loan Documents, until the earlier of (i) the expiration of such 90-day period or such longer period as provided in Section 5(a), or (ii) the delivery by Senior Lender to Subordinate Lender of Senior Lender's written consent to such Enforcement Action by such Subordinate Lender. Subordinate Lender acknowledges that Senior Lender may grant or refuse consent to Subordinate Lender's Enforcement Action in Senior Lender's sole and absolute discretion. At the expiration of such 90-day period or such longer period as provided in Section 5(a) and, subject to Senior Lender's right to cure set forth in Section 5(a), Subordinate Lender may commence any Enforcement Action. Any Enforcement Action on the part of Subordinate Lender will be subject to the provisions of this Agreement. Subordinate Lender acknowledges that the provisions of this Section 5(c) are fair and reasonable under the circumstances, that Subordinate Lender has received a substantial benefit from Senior Lender having granted its consent to the Subordinate Loan, and that Senior Lender would not have granted such consent without the inclusion of these provisions in this Agreement. d. Senior Lender may pursue all rights and remedies available to it under the Senior Loan Documents, at law, or in equity, regardless of any Enforcement Action Notice or 567 of 585 Attachment No. 2 Enforcement Action by Subordinate Lender. No action or failure to act on the part of Senior Lender in the event of a Subordinate Loan Default or commencement of an Enforcement Action will constitute a waiver on the part of Senior Lender of any provision of the Senior Loan Documents or this Agreement. e. If the Enforcement Action taken by Subordinate Lender is the appointment of a receiver for any of the Property, all of the Rents, issues, profits and proceeds collected by the receiver will be paid and applied by the receiver solely to and for the benefit of Senior Lender until the Senior Loan will have been paid in full. f. Subordinate Lender consents to and authorizes the release by Senior Lender of all or any portion of the Property from the lien, operation, and effect of the Senior Loan Documents. Subordinate Lender waives to the fullest extent permitted by law, all equitable or other rights it may have (i) in connection with the release of all or any portion of the Property, (ii) to require the separate sale of any portion of the Property, (iii) to require Senior Lender to exhaust its remedies against all or any portion of the Property or any combination of portions of the Property or any other collateral for the Senior Loan, or (iv) to require Senior Lender to proceed against Borrower, any other party that may be liable for any of the Senior Loan (including any general partner of Borrower if Borrower is a partnership), all or any portion of the Property or combination of portions of the Property or any other collateral, before proceeding against all or such portions or combination of portions of the Property as Senior Lender determines. Subordinate Lender waives to the fullest extent permitted by law any and all benefits under California Civil Code Sections 2845, 2849 and 2850. Subordinate Lender consents to and authorizes, at the option of Senior Lender, the sale, either separately or together, of all or any portion of the Property. Subordinate Lender acknowledges that without Notice to such Subordinate Lender and without affecting any of the provisions of this Agreement, Senior Lender may (i) extend the time for or waive any payment or performance under the Senior Loan Documents; (ii) modify or amend in any respect any provision of the Senior Loan Documents subject to the limitations on such rights as set forth in Section 4(j); and (iii) modify, exchange, surrender, release, and otherwise deal with any additional collateral for the Senior Loan. g. If any party other than Borrower (including Senior Lender) acquires title to any of the Property pursuant to a foreclosure of, or trustee's sale or other exercise of any power of sale under, the Senior Lender conducted in accordance with applicable law, the lien, operation, and effect of the Subordinate Loan Documents automatically will terminate with respect to such Property. 6. Miscellaneous. a. If there is any conflict or inconsistency between the terms of the Subordinate Loan Documents and the terms of this Agreement, then the terms of this Agreement will control. b. This Agreement will be binding upon and will inure to the benefit of the respective legal successors and permitted assigns of the parties to this Agreement. No other party will be entitled to any benefits under this Agreement, whether as a third -party beneficiary or otherwise. 568 of 585 Attachment No. 2 c. This Agreement does not constitute an approval by Senior Lender of the terms of the Subordinate Loan Documents. d. All notices or other written communications hereunder (each, a "Notice" and collectively, "Notices") shall be deemed to have been properly given (i) upon delivery, if delivered in person with receipt acknowledged by the recipient thereof, (ii) one (1) Business Day after having been deposited for overnight delivery with any reputable overnight courier service, or (iii) three (3) Business Days after having been deposited in any post office or mail depository regularly maintained by the U.S. Postal Service and sent by registered or certified mail, postage prepaid, return receipt requested, addressed to the respective parties as follows: Senior Lender: With a copy to: Bank: With a copy to: Subordinate Lender: California Municipal Finance Authority 2111 Palomar Airport Road, Suite 320 Carlsbad, CA 92011 Attention: [ ] Telephone: [ ] Jones Hall 475 Sansome Street, Suite 1700 San Francisco, CA 94111 Attention: Ronald E. Lee Telephone: (415) 391-5780 Pacific Western Bank 1001 Marsh Street San Luis Obispo, CA 93401 Phone: (805) 548-8210 Email: nroddick@pacificwesternbank.com Pacific Western Bank 444 South Flower Street, 14th Floor Los Angeles, CA 90071 Attention: Holly A. Hayes Phone (213) 330-2073 Email: hhayes@pacificwesternbank.com Community Development Commission - Housing Authority of the City of National City 140 East 12th Street National City, CA 91950-3312 Attention: Executive Director e. Nothing in this Agreement or in any of the Senior Loan Documents or Subordinate Loan Documents will be deemed to constitute Senior Lender as a joint venturer or partner of Subordinate Lender. 569 of 585 Attachment No. 2 f. Upon Notice from Senior Lender, Subordinate Lender will execute and deliver such additional instruments and documents, and will take such actions, as are required by Senior Lender in order to further evidence or implement the provisions and intent of this Agreement. g. If any one or more of the provisions contained in this Agreement, or any application of any such provisions, is invalid, illegal, or unenforceable in any respect, the validity, legality, enforceability, and application of the remaining provisions contained in this Agreement will not in any way be affected or impaired. h. The term of this Agreement will commence on the date of this Agreement and will continue until the earliest to occur of the following events: (i) the payment of all of the Senior Loan; provided that this Agreement will be reinstated in the event any payment on account of the Senior Loan is avoided, set aside, rescinded or repaid by Senior Lender as described in Section 2(e) of this Agreement, (ii) the payment of all of the Subordinate Loan other than by reason of payments which Subordinate Lender is obligated to remit to Senior Lender pursuant to this Agreement, (iii) the acquisition by Senior Lender or by a third party purchaser of title to the Property pursuant to a foreclosure of, deed in lieu of foreclosure, or trustee's sale or other exercise of a power of sale or similar disposition under the Senior Deed of Trust; or (iv) with the prior written consent of Senior Lender, without limiting the provisions of Section 5(d), the acquisition by Subordinate Lender of title to the Property subject to the Senior Deed of Trust, pursuant to a foreclosure, or a deed in lieu of foreclosure, of (or the exercise of a power of sale under) the Subordinate Loan Documents. i. No failure or delay on the part of any party to this Agreement in exercising any right, power, or remedy under this Agreement will operate as a waiver of such right, power, or remedy, nor will any single or partial exercise of any such right, power or remedy preclude any other or further exercise of such right, power, or remedy or the exercise of any other right, power or remedy under this Agreement. j. Each party to this Agreement acknowledges that if any party fails to comply with its obligations under this Agreement, the other parties will have all rights available at law and in equity, including the right to obtain specific performance of the obligations of such defaulting party and injunctive relief. k. Nothing in this Agreement is intended, nor will it be construed, to in any way limit the exercise by Subordinate Lender of its governmental powers (including police, regulatory and taxing powers) with respect to Borrower or the Property to the same extent as if it were not a party to this Agreement or the transactions contemplated by this Agreement. 1. This Agreement may be assigned at any time by Senior Lender to any subsequent holder of the Senior Loan Documents. m. This Agreement may be amended, changed, modified, altered or terminated only by a written instrument or written instruments signed by the parties to this Agreement. 570 of 585 Attachment No. 2 n. This Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument. o. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT UNDER, AND TOGETHER WITH ANY DISPUTES OR CONTROVERSIES ARISING OUT OF OR RELATING TO THIS AGREEMENT, SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA AND APPLICABLE FEDERAL LAW, WITHOUT REGARD TO CHOICE OF LAW RULES. p. EACH PARTY HERETO CONSENTS TO AND SUBMITS TO IN PERSONAM JURISDICTION AND VENUE IN THE STATE AND IN THE FEDERAL DISTRICT COURTS WHICH ARE LOCATED IN THE STATE. EACH PARTY ASSERTS THAT IT HAS PURPOSEFULLY AVAILED ITSELF OF THE BENEFITS OF THE LAWS OF THE STATE AND WAIVES ANY OBJECTION TO IN PERSONAM JURISDICTION ON THE GROUNDS OF MINIMUM CONTACTS, WAIVES ANY OBJECTION TO VENUE, AND WAIVES ANY PLEA OF FORUM NON CONVENIENS. THIS CONSENT TO AND SUBMISSION TO JURISDICTION IS WITH REGARD TO ANY ACTION RELATED TO THIS AGREEMENT, REGARDLESS OF WHETHER THE PARTY'S ACTIONS TOOK PLACE IN THE STATE OR ELSEWHERE IN THE UNITED STATES OF AMERICA, THIS SUBMISSION TO JURISDICTION IS NONEXCLUSIVE, AND DOES NOT PRECLUDE EITHER PARTY FROM OBTAINING JURISDICTION OVER THE OTHER IN ANY COURT OTHERWISE HAVING JURISDICTION. q. EACH PARTY HERETO WAIVES ITS RIGHT TO A JURY TRIAL OF ANY AND ALL CLAIMS OR CAUSES OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT. IT IS HEREBY ACKNOWLEDGED THAT THE WAIVER OF A JURY TRIAL IS A MATERIAL INDUCEMENT FOR THE BANK TO MAKE THE BANK LOAN AND THAT THE EXECUTION AND DELIVERY OF THIS AGREEMENT BY THE IS MADE IN RELIANCE UPON SUCH WAIVER. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT SUCH WAIVER HAS BEEN KNOWINGLY AND VOLUNTARILY MADE FOLLOWING CONSULTATION WITH ITS RESPECTIVE LEGAL COUNSEL. r. Each party hereby covenants the following: The parties prefer that any dispute between them be resolved in litigation subject to a jury trial waiver as set forth in this Agreement, but the California Supreme Court has held that such pre -dispute jury trial waivers are unenforceable. This Section will be applicable until: (i) the California Supreme Court holds that a pre -dispute jury trial waiver provision similar to that contained in this Agreement herein is valid or enforceable; or (ii) the California Legislature passes legislation and the governor of the State of California signs into law a statute authorizing pre -dispute jury trial waivers and as a result such waivers become enforceable. Other than the exercise of provisional remedies (any of which may be initiated pursuant to applicable law), any controversy, dispute or claim (each, a "Claim") between the parties arising out of or relating to this Agreement will be resolved by a reference proceeding in 571 of 585 Attachment No. 2 California in accordance with the provisions of Section 638 et seq. of the California Code of Civil Procedure ("CCP"), or their successor sections, which shall constitute the exclusive remedy for the resolution of any Claim, including whether the Claim is subject to the reference proceeding. Venue for the reference proceeding will be in the Superior Court or Federal District Court in Los Angeles County, California (the "Court"). The referee shall be a retired Judge or Justice selected by mutual written agreement of the parties. If the parties do not agree, the referee shall be selected by the Presiding Judge of the Court (or his or her representative). A request for appointment of a referee may be heard on an ex parte or expedited basis, and the parties agree that irreparable harm would result if ex parte relief is not granted. The referee shall be appointed to sit with all the powers provided by law. Pending appointment of the referee, the Court has power to issue temporary or provisional remedies. The parties agree that time is of the essence in conducting the reference proceedings. Accordingly, the referee shall be requested, subject to change in the time periods specified herein for good cause shown, to (a) set the matter for a status and trial -setting conference within fifteen (15) days after the date of selection of the referee, (b) if practicable, try all issues of law or fact within ninety (90) days after the date of the conference and (c) report a statement of decision within twenty (20) days after the matter has been submitted for decision. The referee will have power to expand or limit the amount and duration of discovery. The referee may set or extend discovery deadlines or cutoffs for good cause, including a party's failure to provide requested discovery for any reason whatsoever. Unless otherwise ordered based upon good cause shown, no party shall be entitled to "priority" in conducting discovery, depositions may be taken by either party upon seven (7) days written notice, and all other discovery shall be responded to within fifteen (15) days after service. All disputes relating to discovery which cannot be resolved by the parties shall be submitted to the referee whose decision shall be final and binding. Except as expressly set forth in this Agreement, the referee shall determine the manner in which the reference proceeding is conducted including the time and place of hearings, the order of presentation of evidence, and all other questions that arise with respect to the course of the reference proceeding. All proceedings and hearings conducted before the referee, except for trial, shall be conducted without a court reporter, except that when any party so requests, a court reporter will be used at any hearing conducted before the referee, and the referee will be provided a courtesy copy of the transcript. The party making such a request shall have the obligation to arrange for and pay the court reporter. Subject to the referee's power to award costs to the prevailing party, the parties will equally share the cost of the referee and the court reporter at trial. The referee shall be required to determine all issues in accordance with existing case law and the statutory laws of the State of California. The rules of evidence applicable to proceedings at law in the State of California will be applicable to the reference proceeding. The referee shall be empowered to enter equitable as well as legal relief, provide all temporary or provisional remedies, enter equitable orders that will be binding on the parties and rule on any motion which would be authorized in a trial, including without limitation motions for summary judgment or 572 of 585 Attachment No. 2 summary adjudication. The referee shall issue a decision pursuant to CCP Section 644 the referee's decision shall be entered by the Court as a judgment or an order in the same manner as if the action had been tried by the Court. The final judgment or order or from any appealable decision or order entered by the referee shall be fully appealable as provided by law. The parties reserve the right to findings of fact, conclusions of laws, a written statement of decision, and the right to move for a new trial or a different judgment, which new trial, if granted, is also to be a reference proceeding under this provision. If the enabling legislation which provides for appointment of a referee is repealed (and no successor statute is enacted), any dispute between the parties that would otherwise be determined by reference procedure will be resolved and determined by arbitration. The arbitration will be conducted by a retired judge or Justice, in accordance with the California Arbitration Act Section 1280 through Section 1294.2 of the CCP as amended from time to time. The limitations with respect to discovery set forth above shall apply to any such arbitration proceeding. THE PARTIES RECOGNIZE AND AGREE THAT ALL DISPUTES RESOLVED UNDER THIS REFERENCE PROVISION WILL BE DECIDED BY A REFEREE AND NOT BY A JURY. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY AND FOR THEIR MUTUAL BENEFIT AGREES THAT THIS REFERENCE PROVISION WILL APPLY TO ANY DISPUTE BETWEEN THEM WHICH ARISES OUT OF OR IS RELATED TO THIS AGREEMENT. SENIOR LENDER INITIALS: SUBORDINATE LENDER INITIALS: Nothing in this Section shall affect the rights of the parties to serve legal process in any other manner permitted by law or affect the right of the parties to bring any suit, action or proceeding in the courts of any other jurisdiction. [NO FURTHER TEXT ON THIS PAGE] 573 of 585 Attachment No. 2 [SIGNATURE PAGE TO SUBORDINATION AGREEMENT] IN WITNESS WHEREOF, this Agreement has been executed effective as of the date first above written: SENIOR LENDER: CALIFORNIA MUNICIPAL FINANCE AUTHORITY By: Name: Its: 574 of 585 Attachment No. 2 NOTARY ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF On , before me, ss. Date Name and Title of Officer (e.g., "Jane Doe, Notary Public") personally appeared Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he / she / they executed the same in his / her / their authorized capacity(ies), and that by his / her / their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature [Seal] Notary Public 575 of 585 Attachment No. 2 [SIGNATURE PAGE TO SUBORDINATION AGREEMENT] IN WITNESS WHEREOF, this Agreement has been executed effective as of the date first above written: SUBORDINATE LENDER: COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY By: Executive Director Approved as to form and legality: By: Deputy City Attorney 576 of 585 Attachment No. 2 NOTARY ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF On , before me, ss. Date Name and Title of Officer (e.g., "Jane Doe, Notary Public") personally appeared Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he / she / they executed the same in his / her / their authorized capacity(ies), and that by his / her / their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature [Seal] Notary Public 577 of 585 Attachment No. 2 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY [To be inserted] 578 of 585 RESOLUTION NO. 2017 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY APPROVING THE REFINANCING TERMS FOR VISTA DEL SOL APARTMENTS LOCATED AT 1545 "Q" AVENUE IN NATIONAL CITY THAT PRESERVES AFFORDABILITY FOR 130 APARTMENT UNITS THROUGH DECEMBER 31, 2073; APPROVING THE REINSTATEMENT OF TWO LOANS MADE BY THE HOUSING AUTHORITY AS ONE NEW LOAN IN THE TOTAL AMOUNT OF $7,407,795.08 TO BE ASSUMED BY VISTA DEL SOL APARTMENT, L.P.; AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE THE AMENDED AND RESTATED LOAN AND REGULATORY AGREEMENTS AND ANY OTHER DOCUMENTS NECESSARY TO CLOSE ESCROW WHEREAS, Vista Del Sol Apartments, L.P. ("Borrower") proposes to assume and modify the ownership structure of Vista Del Sol Apartments, a 132-unit affordable rental housing development at 1545 "Q" Avenue, in National City (the "Property"); and WHEREAS, the acquisition and proposed rehabilitation is intended to serve as a community resource by providing decent, safe, and sanitary housing for households who would otherwise be unable to afford such housing; and WHEREAS, the Community Development Commission of the City of National City ("Original Lender") previously provided the properties with financial assistance in the form of loans from public funds to support development of the properties to increase and improve the supply of housing available in the community to low and moderate -income households; and WHEREAS, the Original Lender and Copper Hills Apartments Limited Partnership, a California limited partnership ("Prior Owner"), entered into that certain Affordable Housing Agreement dated as of December 7, 1988 ("Affordable Housing Agreement") in which the Prior Owner received a secured loan from the Original Lender, from the Original Lender's Low and Moderate Income Housing Fund and from HOME funds in an original principal amount of $2,400,000, secured by deed of trust recorded on the property with the San Diego County Recorder on May 27, 1999, as Instrument No. 1999-0363599 ("Former RR Loan"), which is more particularly described in the Affordable Housing Agreement. The Former RR Loan funds have been fully disbursed. $771,658 in principal remains outstanding and $3,797 in interest has accrued as of December 12, 2017, under the Former RR Loan; and WHEREAS, the Prior Owner received a second secured loan from the Original Lender from the Original Lender's issuance of tax allocation bond proceeds in an original principal amount of $4,454,037.07, secured by deed of trust recorded on the property with the San Diego County Recorder on June 2, 1999, as Instrument No. 1999-0382563 ("Former Rehab Loan"), which is more particularly described in the Affordable Housing Agreement. The Former Rehab Loan funds have been fully disbursed. $4,454,037 in principal remains outstanding and $2,349,504 in interest has accrued as of December 12, 2017, under the Former Rehab Loan. The Former Rehab Loan together with the Former RR Loan, shall be referred to herein together, as the "Former Loan"; and WHEREAS, that certain Regulatory Agreement and Declaration of Restrictive Covenants dated as of December 7, 1998, and recorded in the Office of the County Recorder for the County of San Diego on December 11, 1998, as Instrument Number 1998-0807600 ("Previous Regulatory Agreement") was originally made by the Prior Owner and Original Lender; and 579 of 585 Resolution No. 2017 — Page Two WHEREAS, the Community Development Commission -Housing Authority of the City of National City ("Lender") elected to retain the housing assets of and functions previously performed by the Original Lender pursuant to California Health and Safety Code Section 34176, and thereby, by operation of law, the Lender assumed the rights and obligations of the Original Lender with respect to the Affordable Housing Agreement; and WHEREAS, the Borrower is acquiring the Property from the Prior Owner, the Borrower is assuming all of the rights and liabilities of the Prior Owner with respect to the Affordable Housing Agreement and with respect to the Consolidated, Amended and Restated Promissory Note, as defined below. The Lender and Borrower desire to amend and restate the Affordable Housing Agreement in its entirety. Concurrently with the Amended and Restated Loan Agreement ("Restated Loan Agreement"), the promissory notes for the Former Loan are being consolidated, amended and restated into a single Amended and Restated Promissory Note which will be executed by Borrower in the original principal amount of $7,407,795.08 ("Loan"). Each deed of trust securing the Former Loan is being reconveyed, and a new Deed of Trust securing the Loan is being executed and recorded against the Property. These instruments are intended to secure Lender's continuing interest as a governmental entity in the affordability and habitability of the Property, as well as to secure performance of other covenants contained in such agreements; and WHEREAS, The Lender and Borrower also desire to amend and restate the Previous Regulatory Agreement in its entirety. The Amended and Restated Regulatory Agreement (Restated Regulatory Agreement) will be executed and recorded pursuant to the requirements of California Health and Safety Code Section 33334.3. The purpose of this Restated Regulatory Agreement is to regulate and restrict the occupancy, rents, operation, ownership, and management of the property for the benefit of project occupants and the people of the City of National City. The covenants in the Restated Regulatory Agreement are intended to run with the land and be binding on Borrower and Borrower's successors to the land for the full term of the Restated Regulatory Agreement. NOW, THEREFORE, BE IT RESOLVED, that the Community Development Commission -Housing Authority of the City of National City hereby approves the refinancing terms for Vista Del Sol Apartments located at 1545 "Q" Avenue in National City that preserves affordability for 130 apartment units through December 31, 2073; approving the reinstatement of two loans made by the Housing Authority as one new loan in the total amount of $7,407,795.08 to be assumed by Vista Del Sol Apartment, L.P.; and authorizing the Executive Director to execute the Amended and Restated Loan and Regulatory Agreements and any other documents necessary to close escrow. The Amended and Restated Regulatory Agreement will be publicly recorded at the County of San Diego Recorder's Office at the close of escrow and a copy of the Amended and Restated Loan Agreement will be available at the Office of the City Clerk. [Signature Page to Follow] 580 of 585 Resolution No. 2017 — Page Three PASSED and ADOPTED this 19th day of December, 2017. ATTEST: Leslie Deese, Secretary APPROVED AS TO FORM: Angil P. Morris -Jones General Counsel Ron Morrison, Chairman 581 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 582 The following page(s) contain the backup material for Agenda Item: 2017/2018 Employee Work Furlough (December 20, 2017 through January 2, 2018). (City Manager) 582 of 585 Item # 12/19/17 2017/2018 EMPLOYEE WORK FURLOUGH (DECEMBER 20, 2017 THROUGH JANUARY 2, 2018) (CITY MANAGER) 583 of 585 CC/CDC-HA Agenda 12/19/2017 — Page 584 The following page(s) contain the backup material for Agenda Item: Interpretation Services - Spanish to English. (City Clerk) 584 of 585 Item # 12/19/17 INTERPRETATION SERVICES — SPANISH TO ENGLISH (City Clerk) 585 of 585