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Draft Agenda Packet - 10-19-2021 CC HA Agenda (3)
CALIFORNIA NATIONAL CIf l 1 3'./ INCORPORATE ALEJANDRA SOTELO-SOLIS Mayor JOSE RODRIGUEZ Vice Mayor MARCUS BUSH Councilmember RON MORRISON Councilmember MONA RIOS Councilmember 1243 National City Blvd. National City, CA 91950 619-336-4240 Meeting agendas and minutes available on the City's website at WWW.NATIONALCITYCA. GOV AGENDA OF A REGULAR MEETING - NATIONAL CITY CITY COUNCIL/ COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY ONLINE ONLY MEETING https://www.nationalcityca.gov/webcast LIVE WEBCAST COUNCIL CHAMBERS CIVIC CENTER 1243 NATIONAL CITY BOULEVARD NATIONAL CITY, CALIFORNIA TUESDAY, OCTOBER 19, 2021 — 6:00 PM NOTICE: The health and well-being of National City residents, visitors, and employees during the COVID-19 outbreak remains our top priority. The City of National City is coordinating with the County of San Diego Health Human Services Agency, and other agencies to take measures to monitor and reduce the spread of the novel coronavirus (COVID-19). The World Health Organization has declared the outbreak a global pandemic and local and state emergencies have been declared providing reprieve from certain public meeting laws such as the Brown Act. As a result, the City Council Meeting will occur only online to ensure the safety of City residents, employees and the communities we serve. A live webcast of the meeting may be viewed on the city's website at www.nationalcityca.gov. For Public Comments see "PUBLIC COMMENTS" section below 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 Meetings begin in Open Session at 5:00 p.m. or such other time as noted, and after announcing closed session items, convenes into a Closed Meeting. 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 on the City's website at www.nationalcityca.gov. Regular Meetings of the Elected Body are webcast and archived on the City's website at www.nationalcityca.gov. PUBLIC COMMENTS: There are multiple ways you can make sure your opinions are heard and considered by our City Council as outlined below: Submit your public comment prior to the meeting: To submit a comment in writing, email PublicComment(c�nationalcityca.gov, provide the agenda item number and title of the item in the subject line of your email. Public comments or testimony is limited to up to three (3) minutes. If the comment is not related to a specific agenda item, 1 of 324 indicate General Public Comment in the subject line. All email comments received by 4:00 p.m. on the day of the meeting will be emailed to the City Council Members and made a part of the official record. Register online and participate in live public comment during the meeting: To provide live public comment during the meeting, you must pre -register on the City's website at https://www.nationalcityca.qov/publiccomment by 4:00 p.m. on the day of the regular meeting to join the City Council Meeting. ***Please note that you do not need to pre -register to watch the meeting online, but you must pre -register if you wish to speak. Once registered, you will receive an email with a link from Zoom to join the live meeting. You can participate by phone or by computer. Please allow yourself time to log into Zoom before the start of the meeting to ensure you do not encounter any last-minute technical difficulties. ***Please note that members of the public will not be shown on video; they will be able to watch and listen and speak when called upon. Public microphones will be muted until it is your turn to comment. Each speaker is allowed up to three (3) minutes to address the City Council. Please be aware that the Mayor may limit the comments' length due to the number of persons wishing to speak or if comments become repetitious or unrelated. All comments are subject to the same rules as would otherwise govern speaker comments at the meeting. Speakers are asked to be respectful and courteous. Please address your comments to the City Council as a whole and avoid personal attacks against members of the public, City Council, and city staff. Questions about public comment or City Council protocols? Please contact the City Clerk's Office at (619) 336-4228 or via email at Clerk(c�nationalcityca.gov. INTERPRETATION SERVICES: To use the Zoom interpretation feature you must first Pre -Register on Zoom. Once logged into Zoom to use the interpretation feature, please scroll to the bottom of the Zoom screen (where the meeting controls are), click on the interpretation icon (world), and select English as your language. If you are joining using the Zoom mobile app (cell phone, tablet, etc.), please press the ellipsis (...), then Interpretation, and then choose your language. 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 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 2 of 324 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. AVISO: La salud y el bienestar de los residentes, visitantes y empleados de National City durante el brote de COVID-19 sigue siendo nuestra maxima prioridad. El Ayuntamiento de la Ciudad de National City se esta coordinando con la Agencia de Salud y Servicios Humanos del Condado de San Diego y otras agencias para tomar medidas con el fin de monitorear y reducir la propagacion del nuevo coronavirus (COVID-19). La Organizacion Mundial de la Salud declaro el brote como una pandemic global y se han manifestado emergencias locales y estatales que resultan en la suspension de ciertas leyes de reuniones publicas, tal como la Ley Brown. Como resultado de ello, la junta del Concejo Municipal del Ayuntamiento se Ilevara a cabo solamente en linea para garantizar la seguridad de los residentes, empleados y comunidades locales que atendemos. Se podra ver una transmision en vivo de la junta en el sitio web del Ayuntamiento en www.nationalcityca.gov. Para comentarios publicos, vea la seccion "COMENTARIOS PUBLICOS" mas adelante. ORDEN DEL DIA: Las sesiones publicas de todas las juntas ordinarias del Concejo Municipal/Comision de Desarrollo Comunitario - Autoridad de Vivienda (en to sucesivo denominado Organo Electo) inician a las 6:00 p.m. el primer y tercer martes de cada mes. Las audiencias publicas inician a las 6:00 p.m., a menos que se indique to contrario. Las juntas cerradas inician en sesion abierta a las 5:00 p.m. o en cualquier otro momento que se indique, y tras anunciar los temas de la sesion cerrada, la junta se realiza como sesion cerrada. Si se programa una reunion de discusion y analisis, el tema y la hora de la misma apareceran en la agenda. La Alcaldesa y los Concejales se reunen por igual que el Presidente y los integrantes del Consejo de la Comision de Desarrollo Comunitario. INFORMES: Todos los temas e informes de la agenda de la sesion abierta, asi como todos los documentos y escritos entregados al Organo Electo menos de 72 horas antes de la sesion, apareceran en el sitio web del Ayuntamiento. Las juntas ordinarias del Organo Electo se transmiten por Internet y se archivan en el sitio web del Ayuntamiento en www. nationalcityca.gov. COMENTARIOS PUBLICOS: Hay varias formas en las que puede asegurarse de que sus opiniones sean escuchadas y consideradas por nuestro Concejo Municipal como se describe a continuacion: Envie su comentario publico antes de la sesion: Para enviar un comentario por escrito, envie un correo electronico a PublicCommentnationalcityca.qov, proporcione el numero del tema o asunto de la agenda y el titulo del tema o asunto en la linea de asunto de su correo electronico. Los comentarios o testimonios publicos se limitan a tres (3) minutos. Si el comentario no se relaciona con un tema o asunto especifico de la agenda, indique Comentario Publico General en la linea de asunto. Todos los comentarios por correo electronico recibidos antes de las 4:00 p.m. del dia de la sesion se enviaran por correo electronico a los miembros del Concejo Municipal y formaran parte del acta oficial. Registrese en linea y participe en los comentarios publicos en vivo durante la sesion: Para proporcionar comentarios publicos en vivo durante la sesion, debe registrarse previamente en el sitio web del Ayuntamiento en 3 of 324 https://www.nationalcityca.qov/publiccomment antes de las 4:00 p.m. del dia de la junta ordinaria para incorporarse a la sesion del Concejo Municipal. ***Tenga presente que no necesita registrarse previamente para ver la sesion en linea, pero debe registrarse previamente si desea hablar. Una vez registrado, recibira un correo electronico con un enlace de Zoom para integrarse a la sesion en vivo. Puede participar por telefono o por computadora. Tomese el tiempo necesario para iniciar la reunion en Zoom antes del inicio de la sesion para asegurarse de no encontrar dificultades tecnicas de ultimo momento. ***Tenga presente que las personas del publico no se mostraran en video; podran observar, escuchar y hablar cuando se les solicite. Los microfonos publicos se silenciaran hasta que sea su turno de comentar. Cada orador tiene hasta tres (3) minutos para dirigirse al Concejo Municipal. Tenga en cuenta que la Alcaldesa puede limitar la extension de los comentarios debido a la cantidad de personas que deseen hablar o si los comentarios se vuelven repetitivos o no relacionados. Todos los comentarios estan sujetos a las mismas reglas que de otro modo regirian los comentarios de los oradores en la sesion. Se pide a los oradores que sean respetuosos y corteses. Dirija sus comentarios al Concejo Municipal en su conjunto y evite ataques personales contra personas del publico, el Concejo Municipal y el personal del Ayuntamiento. ,Preguntas sobre comentarios publicos o protocolos del Concejo Municipal? Comunrquese con la Oficina de la Secretaria del Ayuntamiento al telefono (619) 336-4228, o por correo electronico a Clerk(nationalcityca.gov. SERVICIO DE INTERPRETACION: Para utilizar la funcion de interpretacion zoom primero debe registrarse previamente en el sitio web de Zoom. Una vez que haya iniciado sesion en zoom para utilizar la funcion de interpretacion, favor de desplazarse a la parte inferior de la pantalla de Zoom (donde aparecen los controles). Naga clic en el icono de interpretacion (globo terraqueo), y seleccione "Spanish" (espanol). Si esta utilizando la aplicacion movil de Zoom (celular, tableta, etc.), presione los puntos suspensivos (...), luego "interpretation" y luego el idioma. AGENDA ESCRITA: Con contadas excepciones, el Organo Electo puede tomar medidas unicamente sobre los temas que aparecen en la agenda escrita. Los temas que no aparezcan en la agenda deben aparecer en una agenda subsecuente, a menos que sean de emergencia o urgencia demostrada, y la necesidad de tomar medidas sobre esos temas haya surgido despues de haber sido publicada la agenda. CALENDARIO DE CONSENTIMIENTO: Los temas del calendario de consentimiento implican cuestiones de naturaleza rutinaria o no controvertida. Todos los temas de consentimiento se adoptan mediante la aprobacion de una sola mocion del Concejo Municipal. Antes de la aprobacion, cualquier tema puede eliminarse de la parte de consentimiento de la agenda y considerarse aparte, a peticion de un concejal, individuo del personal del Ayuntamiento o persona del publico. 4 of 324 Previa solicitud, esta agenda puede estar disponible en formatos alternativos apropiados para personas con discapacidades, en observancia de la Ley de Estadounidenses con Discapacidades. Llame al telefono (619) 336-4228 de la Oficina del Secretario del Ayuntamiento para solicitar una modificacion o adaptacion de acceso relativa a la discapacidad. Notificar 24 horas antes de la sesion permitira al Ayuntamiento hacer arreglos razonables para garantizar la accesibilidad a esta junta. 5 of 324 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 AND CERTIFICATES AWARDS AND RECOGNITIONS PRESENTATIONS (FIVE-MINUTE TIME LIMIT) INTERVIEWS / APPOINTMENTS REGIONAL BOARDS AND COMMITTEE REPORTS (FIVE-MINUTE TIME LIMIT) CONSENT CALENDAR 1. Motion of the City Council of the City of National City approving the waiving of the reading of the text of the Ordinances or Resolutions that are having a Public Hearing considered at this meeting and providing that such Ordinances or Resolutions shall be introduced and/or adopted after a reading of the title only. (City Clerk) 2. Approval of Meeting Minutes: City Council and Community Development Commission - Housing Authority of the City of National City Virtual Regular Meeting - September 21, 2021 Special Meeting of the City Council of the City of National City Virtual Special Closed Session Meeting - September 21, 2021. (City Clerk) 3. Resolution of the City Council of the City of National City to authorize the Chief of Police to enter into an Agreement with the County of San Diego for the National City Police Department to use the San Diego Sheriff's Department's Firing Range and Firearm's Facilities. (Police) 4. Resolution of the City Council of the City of National City ratifying and authorizing the City Manager to execute a one year agreement between the City of National City, Alpha Project, and City of Chula Vista to provide a homeless emergency assistance program; and appropriate PLHA funds to the Alpha Project in the amount of $60,000. (Housing Authority) 6 of 324 5. Resolution of the City Council of the City of National City authorizing the Mayor to execute Program Supplement Agreement (PSA) No. F011 Rev. 1 with the State of California Department of Transportation (Caltrans) for the El Toyon-Las Palmas Bicycle Corridor Project to allow for reimbursement of up to $1,544,000 in eligible project expenditures through the Federal Active Transportation Program (ATP). (Engineering/Public Works) 6. Resolution of the City Council of the City of National City authorizing a Fiscal Year 2022 budget adjustment to establish appropriations in the amount of $55,000 for Capital Improvement Program (CIP) Fleet Vehicle Equipment and Accessories for the Public Works Streets and Wastewater Division and the National City Police Department. (Engineering/Public Works) 7. Resolution of the City Council of the City of National City authorizing a Fiscal Year 2022 budget adjustment to establish an appropriation in the amount of $198,275.10 and waiving the formal bid process pursuant to National City Municipal Code Section 2.60.260 regarding cooperative purchasing and authorizing the City to piggyback onto Sourcewell (formerly "National Joint Powers Alliance") Contract #060920-NAF with National Auto Fleet Group for the purchase and build -out of one (1) 2023 Ford F-750 Gas Cab Base with Versalift VO260 Crane Works Boom Truck in an amount not -to -exceed $198,275.10. (Engineering/Public Works) 8. Resolution of the City Council of the City of National City authorizing the installation of 50 feet of parallel "15-minute" parking and 25 feet of parallel "Loading or Unloading" parking on the north side of E. 8th Street, in front of the future "Market on 8th" at 41 E. 8th Street to increase parking turnover for customers (TSC No. 2020-13). (Engineering/Public Works) 9. Temporary Use Permit — Milk & Honey Outdoor Event hosted by Outpouring Outreach Ministry at 1920 Sweetwater Road on December 4, 2021 from 9 a.m. to 4:30 p.m. with no waiver of fees. (Community Development) 10. Warrant Register #10 for the period of 9/01/21 through 9/07/21 in the amount of $3,816,368.09. (Finance) 11. Warrant Register #11 for the period of 9/08/21 through 9/14/21 in the amount of $462,311.81. (Finance) PUBLIC HEARINGS: ORDINANCES AND RESOLUTIONS 12. Public Hearing and the Introduction of an Ordinance of the City Council of the City of National City establishing community choice aggregation in the city of National City. (Engineering/Public Works) 13. Public Hearing and Introduction of an Ordinance of the City Council of the City of National City amending Sections 18.20.020, 18.21.040, 18.21.050, 18.45, and 18.50, and addition of Sections 18.30.380 and 18.30.390 of Title 7 of 324 18 (Zoning) of the National City Municipal Code. (Applicant City -Initiated) (Case File 2021-18 A) (Planning) NON CONSENT RESOLUTIONS 14. Approval of the 2021 Pension Obligation Bonds. (Finance) NEW BUSINESS B. COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY CONSENT RESOLUTIONS - HOUSING AUTHORITY PUBLIC HEARINGS: RESOLUTIONS - HOUSING AUTHORITY NON CONSENT RESOLUTIONS - HOUSING AUTHORITY NEW BUSINESS - HOUSING AUTHORITY C. REPORTS STAFF REPORTS 15. City Manager Report. (City Manager) MAYOR AND CITY COUNCIL CLOSED SESSION CLOSED SESSION REPORT ADJOURNMENT Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City - Tuesday - November 2, 2021 - 6:00 p.m. - Council Chambers - National City, California. 8 of 324 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 or Resolutions that are having a Public Hearing considered at this meeting and providing that such Ordinances or Resolutions shall be introduced and/or adopted after a reading of the title only. (City Clerk) Please scroll down to view the backup material. 9 of 324 Item # 10/19/21 MOTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE WAIVING OF THE READING OF THE TEXT OF THE ORDINANCES OR RESOLUTIONS THAT ARE HAVING A PUBLIC HEARING CONSIDERED AT THIS MEETING AND PROVIDING THAT SUCH ORDINANCES OR RESOLUTIONS SHALL BE INTRODUCED AND/OR ADOPTED AFTER A READING OF THE TITLE ONLY. (City Clerk) 10 of 324 The following page(s) contain the backup material for Agenda Item: Approval of Meeting Minutes: City Council and Community Development Commission - Housing Authority of the City of National City Virtual Regular Meeting - September 21, 2021 Special Meeting of the City Council of the City of National City Virtual Special Closed Session Meeting - September 21, 2021. (City Clerk) Please scroll down to view the backup material. 11 of 324 Item # 10-19-2021 APPROVAL OF MEETING MINUTES CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY VIRTUAL REGULAR MEETING - September 21, 2021 SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY VIRTUAL SPECIAL CLOSED SESSION MEETING - September 21, 2021 (City Clerk) 12 of 324 CALIFORNIA N,NTIONAL CITY MCOAPOP.ATEO MINUTES OF THE VIRTUAL REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY September 21, 2021 This meeting was conducted utilizing teleconferencing and electronic means consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. The City Council minutes are prepared and ordered to correspond to the City Council Agenda. Agenda Items can be taken out of order during the meeting. The Agenda Items were considered in the order presented. A. CITY COUNCIL CALL TO ORDER The meeting was called to order at 6:04 p.m. by Mayor Sotelo-Solis. ROLL CALL Councilmembers present: Bush, Morrison, Rios, Rodriguez, Sotelo-Solis Other Elected Officials present: Beauchamp, Molina Administrative Officials present: Raulston, Winney, Bell Jr., Chapel, Gilman, Williams, Meteau, Aguirre, Yano, Barrera, Ryan, and Brennan. Interpretation in Spanish provided by Carlos Diaz and Luisa Diaz de Leon. PLEDGE OF ALLEGIANCE TO THE FLAG Councilmember Bush led the Pledge of Allegiance. PUBLIC COMMENTS Mayor Sotelo-Solis summarized the process for acceptance of live public comment allowing two (2) minutes per comment and introduced City Clerk Molina. Thirteen (13) spoken comments were registered and spoken into the record: Diane Grace, Aida Castaneda, Jovita Arellano, Carol Green, Peggy Walker, Jose Gomez, Norma Acosta, Henry Joiner, Ruben Covarrubias, John Moore, Deanna Garcia, Sofia Toral, and Leticia Carrancio. Two (2) written comments were received and read into the record: Kathleen Lippitt and Ted Godshalk. Page 1 of 9 13 of 324 City of National City — City Council Regular Meeting Minutes September 21, 2021 PROCLAMATIONS AND CERTIFICATES 1. A Proclamation of the City of National City Celebrating Latino Heritage Month and Recognizing Father Edmundo Zarate. Mayor Sotelo-Solis presented the proclamation to Father Edmundo Zarate. Public Comment: None Received and filed. 2. A Proclamation of the City of National City Declaring September as National Disaster Preparedness Month. Mayor Sotelo-Solis presented the proclamation to Walter Amedee, Management Analyst III with the National City Fire Department. AWARDS AND RECOGNITIONS 3. Employee of the Quarter 2021 - Christopher Garcia, Supervising Custodian. Mayor Sotelo-Solis presented the proclamation to Christopher Garcia. Director of Public Works Yano and Facility Maintenance Supervisor Gonzalez accepted on his behalf. PRESENTATIONS 4. Library Board of Trustees Annual Report 2020-2021. Mayor Sotelo-Solis introduced Director of Library and Community Services Joyce Ryan and Chair of the Board of Library Trustees Sherry Gogue. Ms. Gogue gave the report as a PowerPoint presentation entitled Library Board of Trustees Annual Report FY 2020-2021 and received comments from the Councilmembers. Public Comment: None Received and filed. 5. School Resource Officer Program. Mayor Sotelo-Solis introduced Police Captain Alex Hernandez who provided a PowerPoint presentation entitled National City Police Department Staff Report on the School Resources Officer Program. School Representatives Dr. Vernon Moore and Alma Sarmiento responded to questions of the City Council. Public Comment: None Received and filed. Page 2 of 9 14 of 324 City of National City — City Council Regular Meeting Minutes September 21, 2021 INTERVIEWS / APPOINTMENTS 6. Appointments: City Boards, Commissions, and Committees - Mayoral Appointments. Mayor Sotelo-Solis introduced City Clerk Molina who provided the report and recited City Council Policy #107 Section D8 regarding the interview process. Staff recommended that the previously advertised vacancy for the Community and Police Relations Committee will return to the City Council at a future meeting date as the City Attorney brought a possible conflict between the Operating Procedures and the Bylaws of the Committee to the attention of the Office of the City Clerk that may require an additional step in the appointment process. City Clerk Molina informed the City Council that Staff recommends that the appointment for the Housing Advisory Committee be delayed as Staff has determined a conflict between City Council Policy #107 and the National City Municipal Code. Public Comment: None. ACTION: Mayor Sotelo-Solis motioned to appoint Coyote Moon to the Board of Library Trustee for a term ending 9/30/2024, seconded by Councilmember Bush. Motion carried by unanimous vote. Mayor Sotelo-Solis motioned to appoint H. Bradley Bang to the Board of Library Trustees for a term ending 9/30/2024, seconded by Councilmember Bush. Motion carried by unanimous vote. Mayor Sotelo-Solis motioned to appoint Anzueth G. Zambrano to the Board of Library Trustee for a term ending 09/30/2024, seconded by Councilmember Bush. Motion carried by unanimous vote. Mayor Sotelo-Solis motioned to appoint Florfina Arce to the Park, Recreation & Senior Citizens Advisory Committee for a term ending 9/30/2024, seconded by Councilmember Bush. Motion carried by unanimous vote. Mayor Sotelo-Solis motioned to appoint Reuben Felizardo to the Park, Recreation & Senior Citizens Advisory Committee for a term ending 9/30/2024, seconded by Councilmember Rios. Motion carried by unanimous vote. Mayor Sotelo-Solis motioned to appoint Jose A. Lopez as a primary member to the Public Art Committee for a term ending 9/30/2024, seconded by Councilmember Rios. Motion carried by unanimous vote. Mayor Sotelo-Solis motioned to appoint Natalia Valerdi-Rogers to the Public Art Committee for a term ending 9/30/2024, seconded by Councilmember Bush. Motion carried by unanimous vote. Mayor Sotelo-Solis motioned to appoint Marisa Rosales to the Traffic Safety Committee for a term ending 9/30/2024, seconded by Councilmember Bush. Motion carried by unanimous vote. Page 3 of 9 15 of 324 City of National City — City Council Regular Meeting Minutes September 21, 2021 Mayor Sotelo-Solis motioned to appoint Javier Alvarado to the Traffic Safety Committee for a term ending 9/30/2024, seconded by Councilmember Bush. Motion carried by unanimous vote. Mayor Sotelo-Solis motioned to appoint Jhoana Alvarado to the Veterans & Military Families Advisory Committee for a term ending 9/30/2025, seconded by Councilmember Rios. Motion carried by unanimous vote. 7. Appointments: City Boards, Commissions and Committees - City Council Appointment. Mayor Sotelo-Solis introduced City Clerk Molina who gave the report and recited City Council Policy #107 Section D8 regarding the interview process. Civil Service Commission: One (1) vacancy for a term through September 30, 2022. The City Council considered two (2) applicants for this position. City Council conducted public interviews of one of the two (2) applicants: Javier Alvarado. Applicant Dr. Gonzalo Quintero was not available for interview but did submit written comment to the City Council for consideration. Public Comment: One (1) written Public Comment: Dr. Gonzalo J. Quintero ACTION: Councilmembers cast their vote virtually by holding up the name of the applicant who received their vote. Councilmember Bush voted for Dr. Gonzalo Quintero Councilmember Morrison voted for Javier Alvarado Councilmember Rios voted for Dr. Gonzalo Quintero Vice -Mayor Rodriguez voted for Javier Alvarado Mayor Sotelo-Solis voted for Dr. Gonzalo Quintero Dr. Gonzalo Quintero was appointed to the Civil Service Commission by 3-2 vote. REGIONAL BOARDS AND COMMITTEE REPORTS Mayor Sotelo-Solis reported that San Diego Association of Governments (SANDAL) will hold an upcoming meeting to discuss the Regional Transportation Plan. She also reported that San Diego Metropolitan Transit System (MTS) is updating the access to restrooms. Councilmember Rios announced that Sweetwater Authority appointed Carlos Quintero as General Manager. She also reported on San Diego County Water Authority's announcement in response to the State Water Resources Control Board announcement of water conservation figures for July. San Diego County water users have done a good job of reducing water waste. Councilmember Bush reported on the business of the San Diego Air Pollution Control District (APCD). Councilmember Morrison stated that his next meeting will be held next quarter. Page 4 of 9 16 of 324 City of National City — City Council Regular Meeting Minutes September 21, 2021 Vice -Mayor Rodriguez stated that his next meeting will be held next month. CONSENT CALENDER Public Comment: None. ACTION: Motion by Councilmember Rios, seconded by Councilmember Morrison, to approve the Consent Calendar Items 8 through 21. Motion carried by unanimous vote. 8. Motion of the City Council of the City of National City approving the waiving of the reading of the text of the Ordinances or Resolutions that are having a Public Hearing considered at this meeting and providing that such Ordinances or Resolutions shall be introduced and/or adopted after a reading of the title only. 9. Adopted Resolution 2021-132. Resolution of the City Council of the City of National City ratifying a First Amendment extending the term to September 30, 2021 and authorizing a Second Amendment extending the term to June 30, 2022 to the Agreement with the County of San Diego for the administration of COVID-19 vaccinations via mobile service units (Mutual Aid Agreement) and authorizing the City Manager to execute future amendments extending the term of the Mutual Aid Agreement. 10. Adopted Resolution 2021-133. Resolution of the City Council of the City of National City approving the one (1) year ratified Agreement and Authorizing the Mayor to execute the ratified Agreement with the National School District for partial funding of the School Resource Officer Program for FY 2022. The City of National City will be reimbursed $77,068 for FY 2022. 11. Adopted Resolution 2021-134. Resolution of the City Council of the City of National City approving the one (1) year ratified Agreement and Authorizing the Mayor to execute the ratified Agreement with the Sweetwater Union High School for partial funding of the School Resource Officer Program for FY 2022. The City of National City will be reimbursed $105,000 for FY 2022. 12. Adopted Resolution 2021-135. Resolution of the City Council of the City of National City approving the settlement between Cheryl Newell and the City of National City. 13. Adopted Resolution 2021-136. Resolution of the City Council of the City of National City approving the settlement and release agreement between Mauquieta McNeil and Taneka McNeil and the City of National City. 14. Adopted Resolution 2021-137. Resolution of the City Council of the City of National City authorizing the Mayor to execute a First Amendment to the Agreement with Vortex Industries, Inc., increasing the not -to -exceed amount by $60,000, for a total Agreement amount of $120,000, due to the demand and continuous need for assistance with specialized services for commercial roll -up doors and gates. 15. Adopted Resolution 2021-138. Resolution of the City Council of the City of National City authorizing the Mayor to execute a First Amendment to the Agreement with 24 Hour Elevator, Inc., increasing the not -to -exceed amount by $100,000, for a total Agreement Page 5 of 9 17 of 324 City of National City — City Council Regular Meeting Minutes September 21, 2021 amount of $160,000, due to the demand and continuous need for assistance with specialized elevator services. 16. Adopted Resolution 2021-139. Resolution of the City Council of the City of National City authorizing the installation of red curb "No Parking" at the intersection of Stancrest Lane and E. 14th Street in order to enhance safety and visibility for drivers exiting Stancrest Lane onto E. 14th Street (TSC No. 2021-17). 17. Adopted Resolution 2021-140. Resolution of the City Council of the City of National City authorizing the installation of a blue curb disabled persons parking space with sign in front of the residence located at 1510 Harding Avenue (TSC No. 2021-18). 18. Filed Investment transactions for the month ended July 31, 2021. 19. Ratified Warrant Register #5 for the period of 7/28/21 through 8/03/21 in the amount of $1,321,040.70. 20. Ratified Warrant Register #6 for the period of 8/04/21 through 8/10/21 in the amount of $2,265,977.29. 21. Ratified Warrant Register #7 for the period of 8/11/21 through 8/17/21 in the amount of $976,085.85. Mayor Sotelo-Solis called fora recess at 8:27 p.m. and returned to open session at 8:40 p.m. with all members present. PUBLIC HEARINGS: ORDINANCES AND RESOLUTIONS NON CONSENT RESOLUTIONS 22. Adopted Resolution No. 2021-141. Resolution of the City Council of the City of National City: 1) acknowledging the Preliminary Update of Climate Action Plan and; 2) directing staff to return to City Council with a CCA ordinance and Joint Powers Agency agreement with San Diego Community Power. City Clerk Molina read the title of the Resolution into the record. Mayor Sotelo-Solis introduced Director of Public Works Yano, who presented the report and gave a PowerPoint presentation titled "Climate Action Plan Preliminary Update / CCA Recommendation". Mr. Yano invited Stephanie Whitmore, Director with WSP, and Cody Hooven with San Diego Community Power and received comments from the Councilmembers. Public Comment: Ten (10) spoken comments were registered and spoken into the record: Karinna Gonzalez, Matthew Vasilakis, Sean Ellis, Kori Ellis, James Hardie, Angel Del Rosario, MacCollin Pelayo, Adam Paris, Cristina Marquez, and Madison Coleman. Five (5) written comment was received and read into the record: Moon Coyote, Kelvin Barrios, John Bennett, Kyle Heiskala, and Vi Nguyen. Page 6 of 9 18 of 324 City of National City — City Council Regular Meeting Minutes September 21, 2021 ACTION: Motion by Councilmember Bush, seconded by Councilmember Rios, to adopt the Resolution. Ayes: Bush, Rios, Rodriguez, Sotelo-Solis Nays: Morrison Motion passed by 4 to 1 vote. Substitute motion by Vice -Mayor Rodriguez, seconded by Councilmember Morrison, to direct Staff to bring back to Council options to purchase energy from this community power agreement and discuss other potential electrical sources. Ayes: Morrison, Rodriguez Nays: Bush, Rios, Sotelo-Solis Motion failed by 3 to 2 vote. Original motion by Councilmember Bush, seconded by Councilmember Rios, to adopt the Resolution. Ayes: Bush, Rios, Rodriguez, Sotelo-Solis Nays: Morrison Motion passed by 4 to 1 vote. NEW BUSINESS 23. Adopted Resolution No. 2021-142. Resolution of the City Council of the City of National City authorizing the acceptance of the Library Access on the Go Grant from the State Library in the amount of $16,421 to cover the costs associated with creating an app for National City Public Library and the establishment of Library Grants Fund appropriations of $16,421 and corresponding revenue budget for Library Access on the Go with no matching funds required. City Clerk Molina read the title of the Resolution into the record. Mayor Sotelo-Solis introduced Director of Library and Community Services Joyce Ryan who gave a PowerPoint presentation entitled Library Access On the Go Mobile App. Public Comment: None. ACTION: Motion by Councilmember Rios, seconded by Councilmember Morrison, to adopt the Resolution. Motion passed by unanimous vote. B. COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY No agenda items. C. REPORTS STAFF REPORTS 24. City Manager Report. Page 7 of 9 19 of 324 City of National City — City Council Regular Meeting Minutes September 21, 2021 City Manager Raulston provided a report on the upcoming policy from OSHA to require private employers to adopt an employee vaccinate mandate. He stated that our organization's vaccination rate is 79%. He continues to promote vaccination as the safest and most effective way for residents and employees to avoid serious illness and hospitalization. Also, the Fire Department will begin their flu vaccination clinics soon. MAYOR AND CITY COUNCIL City Clerk Molina acknowledged National Hispanic Heritage Month. She also mentioned the United Nations General Assembly meeting focused on vaccination, climate change, and sustainable development goals. City Treasurer Beauchamp provided comments concerning the lowrider community's interests. He spoke about sea -level rise and the potential impacts. He mentioned that the City's finances are good due to bonds. Councilmember Bush thanked the ad hoc committee on the lowrider issues and the community members in support of repealing the cruising ordinance. Councilmember Morrison spoke about the private event for the lowrider community. Councilmember Rios acknowledged efforts for a cleaner National City. Vice -Mayor Rodriguez spoke about the misinformation campaign concerning the Covid-19 vaccine. He acknowledged the nurses and other workers that continue their work during the pandemic. He acknowledged Hispanic Heritage Month. Mayor Sotelo-Solis wished a happy Hispanic Heritage Month to the community. She acknowledged the diversity within the Police Department. She spoke about the Paradise Creek clean-up and thanked the volunteers. She also acknowledged the Miracle Babies diapers event, the lowriders event, and the National City Movies in the Park. She wished National City a happy 134' birthday and thanked Baked by Brodic for the special birthday cake. CLOSED SESSION CLOSED SESSION REPORT Mayor Sotelo-Solis introduced City Attorney Bell who provided the report. 1. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION Government Code Section 54956.9(d)(1) Name of Case: Tammy Davis v. City of National City, et al. United States District Court, Southern District of California — Case No. 19-CV-534-BEN- BGS City Attorney Bell reported that there was direction given by City Council by unanimous vote. 2. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION Government Code Section 54956.9(d)(1) Name of Case: Camillo Gutierrez v. City of National City Page 8 of 9 20 of 324 City of National City — City Council Regular Meeting Minutes September 21, 2021 Workers' Compensation Appeal Board Case No. Claim: 13324860 City Attorney Bell reported that there was direction given by City Council by unanimous vote. 3. CONFERENCE WITH LEGAL COUNSEL — LIABILITY CLAIM Government Code Section 54956.95 Claimant: Elva Garcia-Aguilera, et al. Agency Notice of Potential Liability Claim Against: City of National City City Attorney Bell reported that direction was given by a vote of 4 to 0 vote with Mayor Sotelo-Solis as absent. Mayor Sotelo-Solis returned to the meeting at 3:51 p.m. prior to Item 4 Closed Session Item. 4. PUBLIC EMPLOYEE EMPLOYMENT Government Code Section 54957 Performance Evaluation: City Attorney No report. 5. CONFERENCE WITH LABOR NEGOTIATORS Government Code Section 54957.6 Employee Organizations: Municipal Employees' Association (SEIU, Local 221), National City Firefighters Association (Local 2744), Police Officers Association (POA) Unrepresented Groups: Executive, Confidential, and Management Agency Designated Representatives: Eddie Kreisberg (Labor Negotiator), Brad Raulston (City Manager), Tony Winney (Assistant City Manager), Molly Brennan (Administrative Services Director), Jose Tellez (Chief of Police), Paul Valadez (Budget Manager - Finance), Lilia Munoz (Human Resources Manager) No report. ADJOURNMENT Mayor Sotelo-Solis adjourned to the Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City to be held Tuesday, October 5, 2021 at 6:00 p.m. via teleconference. The meeting adjourned at 10:34 p.m. Luz Molina, City Clerk The foregoing minutes were approved at the Regular Meeting of October 19, 2021. Alejandra Sotelo-Solis, Mayor Page 9 of 9 21 of 324 - CALIFORNIA NATIONAL CITY 13131 .. l coRronAT80 MINUTES OF A SPECIAL MEETING NATIONAL CITY COUNCIL September 21, 2021 This meeting was conducted utilizing teleconferencing and electronic means consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. OPEN SESSION CALL TO ORDER The meeting was called to order at 3:04 p.m. by Mayor Sotelo-Solis. ROLL CALL Councilmembers present: Bush, Morrison, Rios, Rodriguez, and Sotelo-Solis. Administrative Officials present: Raulston, Winney, Bell Jr., Chapel, Brennan, Meteau, Munoz, Tellez, Valadez, and Yano. Consultants/Advisors: Rod Coppedge and Eddie Kreisberg. PUBLIC COMMENTS None. Members retired into Closed Session at 3:06 p. m. CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION Government Code Section 54956.9(d)(1) Name of Case: Tammy Davis v. City of National City, et al. United States District Court, Southern District of California — Case No. 19-CV-534-BEN-BGS Members retired into Closed Session at 3:06 p.m. and returned at 3:45 p.m. with all members present in attendance: Bush, Morrison, Rios, Rodriguez, Sotelo-Solis, Raulston, Winney, Bell Jr., and Jose Tellez 2. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION Government Code Section 54956.9(d)(1) Name of Case: Camillo Gutierrez v. City of National City Workers' Compensation Appeal Board Case No. Claim: 13324860 Members retired into Closed Session at 3:45 p.m. and returned at 3:47 p.m. with all members present in attendance: Bush, Morrison, Rios, Rodriguez, Sotelo-Solis, Raulston, Winney, Bell Jr., Meteau, Brennan, and Outside Counsel Rod Coppedge. Page 1 of 3 22 of 324 City of National City — Special Meeting Minutes (Closed Session) September 21, 2021 Rod Coppedge, Outside Counsel and Robert Meteau, Director of Human Resources left the meeting at 3:48 p.m. Mayor Sotelo-Solis left the Meeting at 3:48 p.m. and returned at 3:51 p.m. Vice -Mayor Rodriguez chaired the meeting during the next Closed Session item. 3. CONFERENCE WITH LEGAL COUNSEL — LIABILITY CLAIM Government Code Section 54956.95 Claimant: Elva Garcia-Aguilera, et al. Agency Notice of Potential Liability Claim Against: City of National City Members retired into Closed Session at 3:48 p.m. and returned at 3:51 p.m. with all members present in attendance: Bush, Morrison, Rios, Rodriguez, Raulston, Winney, Bell Jr., Brennan, and Yano. Robert Yano, Director of Public Works left the meeting at 3:51 p.m. 4. PUBLIC EMPLOYEE EMPLOYMENT Government Code Section 54957 Performance Evaluation: City Attorney Members retired into Closed Session at 3:51 p.m. and returned at 4:00 p.m. with all members present in attendance: Bush, Morrison, Rios, Rodriguez, Sotelo-Solis, and Bell Jr. 5. CONFERENCE WITH LABOR NEGOTIATORS Government Code Section 54957.6 Employee Organizations: Municipal Employees' Association (SEIU, Local 221), National City Firefighters Association (Local 2744), Police Officers Association (POA) Unrepresented Groups: Executive, Confidential, and Management Agency Designated Representatives: Eddie Kreisberg (Labor Negotiator), Brad Raulston (City Manager), Tony Winney (Assistant City Manager), Molly Brennan (Administrative Services Director), Jose Tellez (Chief of Police), Paul Valadez (Budget Manager - Finance), Lilia Munoz (Human Resources Manager) Members retired into Closed Session at 4:02 p.m. and returned at 5:42 p.m. with all members present in attendance: Morrison, Rios, Rodriguez, Sotelo-Solis, Raulston, Winney, Bell Jr., Brennan, Valadez, and Munoz. Guest: Eddie Kreisberg (Labor Negotiator) CLOSED SESSION REPORT PROVIDED AT END OF REGULAR MEETING Members returned from Closed Session at 5:42 p.m. with all members present. Page 2 of 3 23 of 324 ADJOURNMENT Mayor Sotelo-Solis adjourned to the Special Meeting to the Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City to be held Tuesday, September 21, 2021, at 6:00 p.m. via teleconference. The meeting adjourned at 5:42 p.m. Shelley Chapel, Deputy City Clerk The foregoing minutes were approved at the Regular Meeting of October 19, 2021. Alejandra Sotelo-Solis, Mayor Page 3 of 3 24 of 324 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City to authorize the Chief of Police to enter into an Agreement with the County of San Diego for the National City Police Department to use the San Diego Sheriff's Department's Firing Range and Firearm's Facilities. (Police) Please scroll down to view the backup material. 25 of 324 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 19, 2021 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City to authorize the Chief of Police to enter into an Agreement with the County of San Diego for the National City Police Department to use the San Diego Sheriff's Department's Firing Range and Firearm's Facilities. PREPARED BY: Christopher A. Sullivan, Lieutenant DEPARTMENT: Police PHONE: (619) 336-4451 APPROVED BY: EXPLANATION: The National City Police Department requests that the City Council authorize the Chief of Police to enter into an Agreement to use the San Diego Sheriff's Department's Facility located at 440 Alta Road, San Diego, and to approve all future extensions of the agreement under the same terms and conditions of the current agreement. This agreement includes an indemnification and self-insurance provision to use the firing range and other training facilities as specified. The costs of using the facility is listed in the Agreement under Exhibit B, and has been the standard costs from the previous agreement. FINANCIAL STATEMENT: ACCOUNT NO. The costs remain the same as the previous agreement, which are listed in Exhibit B, and are accounted for in the fiscal year 2022 adopted budget. ENVIRONMENTAL REVIEW: This action is not subject to review under the California Environmental Quality act (CEQA). ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Approve the Resolution. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: County of San Diego Firearms Range Use Agreement and Exhibits A-E City of National City required insurance coverage documents. 126 of 3241 LICENSE SAN DIEGO REGIONAL FIREARMS TRAINING CENTER This license agreement ("License") is entered into between the County of San Diego, a political subdivision of the State of California ("County'), and the City of National City Police Department ("Licensee"). RECITALS A. County owns and maintains a training facility (defined as "Facility" in Section 1) on County -owned property located at 440 Alta Road, San Diego, California. B. Licensee is a public entity that desires permission for the use of the Facility. C. The Director, Department of General Services ("Director''), finds that grant of a license to Licensee for use of the Facility is in the public interest of promoting public safety and use of the training Facility by Licensee will not substantially conflict or interfere with the use of the Facility by the County as the Licensee's use is non-exclusive. D. County agrees to the use of the Facility and grants permission for use of the training facility by Licensee upon the following terms and conditions. LICENSE 1. Facility. The property subject to this License is located at 440 Alta Road, San Diego, California and includes land for shooting ranges ("Range'') and structures ('`Training Rooms") that comprise the "San Diego Regional Firearms Training Center" ("Facility'). The Facility is further described in EXHIBIT "A" FACILITY MAP of this License 2. Use. Licensee is hereby given a non-exclusive license to use the Facility for meeting and training purposes only upon the terms and conditions contained in this License. 3. Term. The term ("Term") of this License shall commence upon execution of this License by the Director ("Commencement Date"),and shall expire ten (10) years from the Commencement Date unless earlier terminated by County or Licensee upon ten (10) days written notice to the other party. 4. FacilityReservations. Licensee shall request in writing specific days and specific times for the use of the Facility at least ten (10) days prior to the date of requested use. Written requests shall be e-rnailed to the San Diego Regional Firearms Training Center at rangerequest.otaysdsheriff.org or made by telephone at 619-661-2757 or 619-661-2758. County will provide a written confirmation of a reservation, provided the Facility is available for use at the day and time requested. Ifthe day and time requested is not available, notification will be provided to the Licensee within three (3) business days via e-mail or telephone. Licensee agrees and understands that the Facility may be reserved only if the Facility is not in use by 1 [rev. 619/21] 27 of 324 County or other parties under a license with County and that reasonable accommodation of all parties using the Facility is the desired objective. Reservations for Structured Training Events (defined in EXHIBIT "C") will require additional information as described in EXHIBIT "C" RULES AND REGULATIONS of this License. 5. Fees. Licensee shall pay fees for use of the Facility as described in EXHIBIT "B" FEE SCHEDULE of this License. County reserves the right to revise the fee schedule from time to time during the Term. County shall provide ninety (90) days written notice to Licensee of any change to the fee schedule. 6. County Use of Facility. County reserves the right to use the Facility at all times and to close the Facility during times of emergency or when needed for County activities. 7. Access. Licensee and Licensee's employees, guests and invitees shall not impede the flow of vehicular traffic on, or restrict public access to or from, the Facility. Licensee shall not interfere with County operations at the Facility. When on the Facility, Licensee and Licensee's employees, guests and invitees shall drive only on established roadways and driveways. 8. License. This License is not a lease, does not create or convey an easement and does not convey any interest or estate in real property to Licensee. County may enter the Facility covered by this License at any time during the Term. 9. Maintenance,_Cleanup and Repair. Licensee shall conduct Licensee's operations in an orderly manner and shall leave the Facility in as clean and good a condition as when Licensee first entered the Facility pursuant to this License. If Licensee damages any County property or facilities or incurs excessive cleanup of the Facility, Licensee shall promptly inform the Range office and shall promptly reimburse County for the full costs that County incurs to clean the Facility, repair the damage, or replace the damaged property. 10. Storm, Licensee shall not store or leave any personal property or equipment on or in the Facility without obtaining the prior written consent of the Range office. 1 1. License on Site. Licensee shall have a copy of this License available at all times when Licensee is using the Facility. Licensee shall show a copy of this License to County staff upon request. 12. Compliance with Laws. Licensee shall comply with all federal, state and local laws, statues, ordinances, rules or regulations, including all provisions of the Occupational Safety and Health Act of 1979 ("Act") and all amendments to the Act, that apply to Licensee's use of the Facility. 13. Rules and_Regulations. Licensee shall comply with the rules and regulations for the Facility attached as EXHIBIT "C" RULES AND REGULATIONS of this License. 14. Safety. Lessee shall comply with all applicable federal, state and local safety 2 [rev. 6/9/21] 28 of 324 regulations including the regulations attached as EXHIBIT "C" RULES AND REGULATIONS, EXHIBIT "D" RANGE SAFETY OFFICER QUALIFICATIONS and EXHIBIT "E" RANGE SAFETY POLICY of this License. 15. Compliance with Stormwater Laws. Licensee's use of the Facility is subject to all present or future federal, state and local laws, statutes, regulations, ordinances, policies, guidelines and orders ("Stormwater Laws") regarding the discharge of pollutants into the stormwater conveyance system. As applicable to the Licensee's use of the Facilities, Licensee's compliance with Stormwater Laws may include requirements for Licensee to develop, install, implement and maintain pollution prevention measures, source control measures and Best Management Practices ("BMPs"). BMPs can include operational practices, water or pollutant management practices, physical site features, or devices to remove pollutants from stormwater, to affect the flow of stormwater or to infiltrate stormwater to the ground. BMPs applicable to Licensee's use of the Facility may include a requirement that all materials, wastes or equipment with the potential to pollute urban runoff be stored in a manner that either prevents contact with rainfall and storrnwater, or contains contaminated runoff for treatment and disposal. Licensee is required to and shall use, operate, maintain, develop, redevelop and retrofit the Facility, as necessary, in accordance with Stormwater Laws restricting the discharge of non-stormwater at or from the Facility and Stormwater Laws requiring pollution prevention measures, source control measures, or the installation or use of BMPs. Licensee shall develop, install, implement and/or maintain at Licensee's sole cost and expense, any BMPs or similar pollution control devices required by Stormwater Laws and any implementing regulations or guidance. Licensee understands and acknowledges that the Stormwater Laws applicable to Licensee's use of the Facility may be changed from time to time by federal, state and/or local authorities, and that additional requirements may become applicable based on changes in Licensee's activities or development or redevelopment by Licensee or County. Licensee shall conduct stormwater training and perform regular stormwater selfinspectfons, and maintain records of all stormwater training and self -inspections and provide all necessary documentation to County upon request. Licensee shall develop, install, implement, and maintain any additional BMPs and/or other pollution control practices at the Facility at Licensee's sole expense. To the extent there is a conflict between any federal, state or local law, Licensee shall comply with the more restrictive provision. If County receives any fine or fines from any regulatory agency as a result of Licensee's failure to comply with Stormwater Laws, Licensee shall reimburse County for the entire amount of the fine(s). 16. Hazardous Substances. Licensee shall be solely responsible for fully complying with all present or future federal, state and local laws, statutes, regulations, ordinances, policies, guidelines and orders of any governmental entity regarding contaminated soils, hazardous materials or environmental cleanup, regardless of whether or not the obligation to comply is an obligation of the landowner. If any hazardous substance spills, leaks or is discharged from any facility an the Facility, Licensee shall immediately make all repairs necessary to prevent further spills, leaks or discharges and shall immediately clean up and promptly dispose of the spilled hazardous substance and any soil contaminated by the spill. If Licensee fails to make the required repairs, to clean up the spill or to properly dispose of any contaminated soil, County may after written notice to Licensee take all steps County deems necessary to make the necessary repairs, to clean up the spill and to dispose of any contaminated soil. Licensee shall 3 [rev. 6/9/21] 29 of 324 reimburse County for the cost of all repair and cleanup work performed by County. Licensee shall reimburse the County for the cost of any work, plus administrative expenses, within thirty (30) days of receiving a bill for the work from the County. Licensee shall be solely responsible for paying all fines, damages and penalties imposed by any governmental agency regarding the production, storage, distribution, processing, handling, disposing, spilling, leaking or discharging of any hazardous substance. Without limiting Licensee's indemnification obligations to County under Section 18 and excluding material expended from ammunition or ordnance by Licensee pursuant to the terms and conditions of this License, Licensee shall indemnify, defend, reimburse and hold harmless County, its elected officials, officers, employees and agents from any and all liability, claims, damages or injuries to any person, including injury to the County or any of County's elected officials, officers, employees, agents, representatives, guests, licensees, invitees, patrons, or of any other person, and all expenses of investigating and defending against all liability, claims, damages or injuries, arising from or alleged to have arisen from or in connection with the presence of hazardous substances, toxic materials or hazardous waste upon, about or beneath the Facility or migrating to or from the Facility or arising in any manner out of the violation of any governmental regulation pertaining to hazardous substances, toxic materials or hazardous waste which condition exists after the execution of this License. 17. County Access. County, or County's representatives or agents, may enter the Facility at any and all reasonable times during the Term of this License for the purpose of determining whether Licensee is complying with the terms and conditions of this License, or for any other purpose incidental to the rights of County. 18. Indemnification. County shall not be liable for, and Licensee shall defend and indemnify County and County's elected officials, officers, employees and agents (collectively "County Parties") against, any and all claims, demands, liability, judgments, awards, fines, mechanics liens or other liens, labor disputes, losses, damages, expenses, charges or costs of any kind or character, including attorneys' fees and court costs (collectively "Claims"), related to this License or Licensee's use of the Facility and arising either directly or indirectly from any act, error, omission or negligence of Licensee or its contractors, agents, volunteers, servants or employees, including, without limitation, Claims caused by the concurrent negligent act, error or omission, whether active or passive, of County Parties. Licensee shall have no obligation, however, to defend or indemnify County Parties from a Claim if it is determined by a court of competent jurisdiction that the Claim was caused by the sole negligence or willful misconduct of County Parties. 19. Insurance. a. Self-insurance. Licensee is fully self -insured for damage resulting from liability of Licensee or any of Licensee's agents or employees. Licensee's utilization of self- insurance shall not in any way limit liabilities assumed by Licensee under this License. If Licensee ceases to be self -insured during the Term of this License, Licensee shall furnish to County proof of insurance in form and amounts satisfactory to County. County's requirements shall be reasonable, but shall be designed to insure protection from risks that exist at the time a change in insurance is required. b. Workers Compensation Insurance. Licensee shall provide Workers 4 [rev. 6/9/211 30 of 324 Compensation insurance at Licensee's sole cost and expense. Licensee and its insurance carrier shall not be entitled to recover any costs, settlements or expenses of Workers Compensation claims arising out this License. If Licensee is a Federal Agency, the Federal Employees Compensation Act (FECA) would be acceptable to County's Risk Management Division regarding this coverage. 20. Accidents. If a death, serious personal injury or substantial property damage occurs in connection with the performance of this License, Licensee shall immediately notify the Sheriff's Communication Center at 858-5655O3O. Licensee shall promptly submit to County a written report, in any form required by County, of any accidents that occur in connection with this License. The report must include the following information: (i) the name and address of the injured or deceased person(s); (11) the name and address of Licensee's liability insurance carrier; and (iii) a detailed description of the accident and whether any of County's equipment, tools, material or staff was involved. 21. Assignment. Licensee shall not assign or transfer any interest in this License. 22. Notices. Any notice, other than the Facility reservationsdescribed in Section 4 of this License, that is required or permitted to be given pursuant to this License shall be written and shall be effective (1) when personally delivered to the recipient or sent by facsimile transmission, or (ii) on the third business day after being sent by the United States Postal Service, postage prepaid and addressed to the party as follows: If to County: Sheriff Weapons Training Unit 440 Alta Road San Diego, California 92154 With a copy to: If to Licensee: County of San Diego Department of General Services Asset Management Division 5560 Overland Avenue Suite 410 San Diego, California 92123 City of National City Police Department Attention: Captain Graham Young 1200 National City Boulevard National City, California 91950 Telephone Number: 6194-336-4514 Email: gyoungnationa1c ityca.gov If Licensee's contact information changes during the term of this License, Licensee shall notify County in writing within five (5) business days of the change. 23. Entire Agreement. This License constitutes the entire agreement between County 5 [rev. 619/21] 31 of 324 and Licensee with respect to the subject matter of this License, and all prior or contemporaneous agreements, understandings and representations, oral or written, are superseded. 24. Interpretation. This License shall be governed by the laws of the State of California. However, the provisions of this License shall be strictly construed against Licensee. 25. Authority to Sign. Licensee represents and warrants that Licensee has full power and authority to execute and fully perform Licensee's obligations under this License without the need for any further action, and that the person executing this License on behalf of Licensee is the duly designated agent of Licensee and is authorized to act on behalf of Licensee. 26. Business Days. The term "business days" as used in this License means any calendar day other than a Saturday, Sunday, or official County holiday. 27. Exhibits. All exhibits referred to in this License are attached to this License and incorporated into this License by reference. 28. Effective Date. County and Licensee have executed this License as of the day and year written below. This License shall be effective as of the date of its execution by the Director. 29. Counterparts; Electronic Transmittal; Electronic Signatures. This License may be executed in counterparts, and County and Licensee agree that each counterpart shall constitute one agreement binding on County and Licensee, notwithstanding that County and Licensee are not signatory to an original or same counterpart. Executed counterparts of this License may be transmitted electronically, and County and Licensee agree that each counterpart of a fully executed License transmitted electronically via pdf attachment shall be binding as if the signatures transmitted electronically were original signatures. This License may be executed using electronic signatures, and County and Licensee agree that each electronic signature shall have the same legal effect and enforceability as a manually executed signature to the extent provided for in the Uniform Electronic Transactions Act codified in State of California Civil Code Sections 1633.1 - 1633.17. THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK. THE SIGNATURES ARE ON THE FOLLOWING PAGE. 6 [rev. 6/91211 32 of 324 SIGNATURES Licensee: City of National City Police Department By: Jose Tellez, Chief of Police Date: 7 County: County of San Diego, a political subdivision of the State of California BY: . . Marko Medved, P.E., CEM, Director, Department of General Services Date: [rev. 6/9/211 33 of 324 EXHIBIT "A" FACILITY MAP Location Map LOrESTAR RD — Ea I INTERSTATE STATE ROUE 905 WR'r1P4j 11 We 9Os ',AIRWAY, RD a cc w X STATE ROUTE 11 EB »SIEMPR San Diego Regional Firearms Training Center RP Parcel No. 2017-0237-A to'e 9 yds — ed o ix au E VIVA RD ()TAY LA FUENTE MESA R D1-1 :al 4* 9: 1412, 4) 440 2Or 74237-A A-1 34 of 324 EXHIBIT "A" FILITY MAP Site Map Otay Region& Park East Mesa Weapons Facility Noise Buffer, 2017-0237-A San Diego Regional Firearms Training Canter RP Parcel No. 2017-0237-A Geo, , eyEest •Mesa D FacJliy PRIVATE RD A-2 35 of 324 EXHIBIT "A" FACILITY MAP Site Plan 36 of 324 EXHIBIT "B" FEE SCHEDULE SAN DIEGO REGIONAL FIREARMS TRAINING CENTER EFFECTIVE 12/04/2017 ..... STRUCTURED TRAINING EVENTS 4-hours 8-hours Range 1 Combat/Drive-on, 50- and $200.00 $300.00 rane Range 2, Range 3, Range 4 Turning Target, 50-year ranges $200.00 $300.00 Range 5 200-yard Rifle Range $200.00 $300.00 ** Night Shoot/After Hours Premium (16:30-21:30 Monday to Friday by appointment only) $300.00 _ N/A 1 4-hours I 8-hours SIMS House $200.00 $300.00 ..... $200.00 $300.O0 i Live Fire House ....... Defensive Tactics House $200.00 $300.00 4-hours 8-hours Auditorium Maximum - 200 occu. anc $100.00 $150.00 Classroom A 25 $100.00 $150.00 (Maximum - occu anc _ _ Classroom B (Maximum - 25 occupancy) _ $100.00 $150.00 Classroom C (Maximum - 25 occupancy) $100.00 _ $150.00 Classroom D (Maximum - 25 occupancy) $100.00 $150.00 $100.00 $150.00 Classroom E (Maximum - 25 occupancy) OPEN SHOOTING (see Exhibit "C" for Open Shoot definition) I 1-hour Additional hours upon availability All Ran:es when available No char.e No ehar:e Revised 12/04/2017 B-1 37 of 324 EXHIBIT "C" RULES AND REGULATIONS Use of the Facility falls into two categories: (1) "Open Shooting" (individual shooting) and (li) "Structured Training Events' (group training). The use of the Facility is subject to the rules and regulations below, which is subject to change during the Term of this License. Any changes will be communicated by County personnel at the Range office at the time when appointments are made and/or at check -in for Range use. Open Shooting Open Shooting is designed to allow law enforcement officers the opportunity to train individually. The officer must adhere to the following protocols when using the Range. Failure to adhere to the protocols may result in loss of Range privileges and notification of the loss of shooting range privileges to the officer's employer. If more than three individual Open Shooters of Licensee use the Range at the same time, the use will be categorized as a group and shall require payment of Structured Training Reservation fees. 1. The officer shall report to the Range office prior to shooting. 2. The officer shall read and acknowledge the Range safety rules. 3. All firearms being used during training shall be listed on the sign -in log. 4. The officer may be required to provide eye and ear protection and tape at the time of check -in. 5. Open shooting shall only be conducted on the Range designated by the Range office. 6. Only stationery, presented targets shall be used. 7. The officer shall provide cardboard target backing. 8. No steel shooting is allowed without prior coordination with the Range office and approval from the Sheriffs Weapons Training Lieutenant. 9. No automatic firearms shall be fired during open shooting without prior coordination with the Range office and approval from the Sheriffs Weapons Training Lieutenant. 10. The officer shall check out with the Range office prior to leaving the Facility. I I . All damage and injuries must be reported to Range office at the time of check out and reported pursuant to Section 22 of this License. 12. Licensee and its employees, guests, and invitees shall not clean weapons at the Facility using solvents or other hazardous substances. The Facility does not provide disposal of C-1 38 of 324 rags or other materials used for cleaning weapons. Pursuant to Section 16 of this license, the Licensee is responsible for fully complying with all federal, state, and local laws pertaining to hazardous substances. Structured Training Events To reserve a Range or use a Training Room for a Structured Training Event, the requesting agency must: 1. Contact the Facility's scheduling office to check availability at 619-661-2757 or 619- 661-2758. 2. Submit a request via email at rangerequest.otaycZjsdsherifforg or to 619-661-2757 or 619-661-2758 a minimum of two (2) weeks prior to requested date. The written request must include the following information: a. Name of the Range Safety Officer (defined in EXHIBIT "D") who will oversee the training. b. identification of the Range or Training Room being requested. c. Date and time of requested use and number of trainees. d. Synopsis of the course of fire or nature of training or event being conducted. e. Types of firearms and ammunition to be used. f. Indication if automatic weapons are to be used. This must be approved by Range office prior to the training. 3. Confirm that that Range Safety Officer that will oversee the training meets the qualifications listed in EXHIBIT "D" RANGE SAFETY OFFICER QUALIFICATIONS. 4. The Range Safety Officer shall conduct a pre -use inspection of the Facility. Any maintenance discrepancy should be brought to the attention of the Range office prior to use. 5. The Range Safety Officer, at the conclusion of training, shall sign out at the Range office. Any damage or injuries shall be reported prior to leaving the Facility out and reported pursuant to Section 22 of this License. G2 39 of 324 EXHIBIT "D" RANGE SAFETY OFFICER QUALIFICATIONS Any agency wanting to schedule the use of a Range at the Facility for a Structured Training Activity shall: 1. Be a law enforcement agency or military entity authorized to use the Facility. 2. Have a "Range Safety Officer" who has completed a "Police Officer Standards and Training" [POST] approved firearms instructor certification course or equivalent. 3. Submit a letter indicating the certification course attended by the Range Safety Ofticer and the date of the certification. 4. Have the Range Safety Officer attend an annual update course or review of updated Facility policy as dictated by the Sheriff's "Range Master''. D-1 40 of 324 EXHIBIT "E" RANGE SAFETY POLICY It is the responsibility of the Sheriff's Range Master, Facility staff and the Licensee's Range Safety Officer to ensure a safe training environment by enforcing and obeying the following safety guidelines: General .Safety J..uies 1. Safety is everyone's responsibility. 2. Authorization to use the Facility is restricted to law enforcement and military personnel only. 3. Civilian guests, accompanied by a law enforcement/military host, may use the Facility. However, this use must be scheduled in advance and supervised by Weapons Training Unit staff. 4. Signing in and out at the Range office is mandatory. 5. No person under the age of 18 will be allowed on the facility without prior authorization of Range office. 6. Any person displaying symptoms of intoxication will not be allowed at the Facility. Any person using prescription drugs must report this to the Range Safety Officer or Facility staff prior to using the Range. If the individual's sobriety or ability to operate weapons safely is questionable, Facility staff will reserve the right to deny access to the Facility. The individual will be released to a competent guardian and shall leave the Facility. 7. Smoking is not allowed at the Facility. 8. Individuals using the Range are restricted to a 9Ominute use period when other personnel are waiting to use the Range. Aiming, discharging and all loading and unloading of weapons must be done on the firing line of the Range and not in the parking area of the Facility, with the firearm pointed in a safe direction (down range). 10. Automatic firearms will be fired only during supervised training and only after notifying Range office. 11. Use of eye and ear protection is required of all personnel while shooting is in progress. 12. All expended ammunition casings and trash will be cleared from the Range following use. E-1 41 of 324 13. Pursuant to Section 9 and Section 22 of this license, all damage must be promptly reported to the Range office. 14. All injuries must be reported to the Range office immediately. Any response to medical emergencies shall be in compliance with the "Medical Response Procedures" set forth in the San Diego County Regional Firearms Training Center Policy & Procedures Manual. 15. No ammunition is allowed in firearms cleaning areas. 16. No diversionary devises (flash bangs) are allowed at the Facility, unless authorized in advance by Facility staff. 17. No chemical agents may be used at any time. 18. No walking is allowed on any dirt impact area or protective berms at any time. 19. No dogs are allowed at the Facility, unless they are enclosed/secured within a law enforcement vehicle. Dogs shall not leave a vehicle while at the Facility. No "breaking" of a dog will be allowed at the Facility. 20. All vehicles will be driven in a safe and reasonable manner not to exceed 15 miles per hour. In addition to the general safety rules, the following rules apply to the use of the specified ranges: Range One (Combat Range) 1. Steel target systems are to be used only after being approved by the Range office. Firing only at authorized targets is allowed. 2. Vehicles may be brought onto the range for training purposes upon prior approval of the Range office. 3. Use of eye and ear protection is mandatory for all personnel while shooting is in progress. A baseball -style cap is recommended. 4. At no time shall a shooter fire at steel targets closer than 10-yards and the shooters must be as close to a 90-degree angle to the target as possible, to avoid damage and deflection. Range Two, Range Three. Range Four(P is.to! Ranges 1. Rifle training is permitted only in a semiautomatic mode. No firing at moving targets or E-2 42 of 324 shooting on the move is allowed. No caliber greater than .223 is allowed on any pistol range. 2. No steel target systems are allowed. 3. No vehicles are allowed on the Range. 4. Automatic fire (controlled), unless otherwise authorized, will be conducted within 15 yards of the targets. RangeFiv.e (RiRange) 1. All targets will be posted at the 200-yard target system. The 100-yard system shall not be used. 2. No vehicles are allowed on the Range. 3. No steel target systems are allowed. 4. Only firing at authorized targets is allowed. 5. Automatic fire (controlled), unless otherwise authorized, will be conducted within 25 yards of the targets. E-3 43 of 324 CERTIFICATE NO. ISSUE DATE GL117454 Al CERTIFICATE OF COVERAGE Public Risk Innovation, Solutions, and Management CIO ALLIANT INSURANCE SERVICES, INC. PO BOX 6450 NEWPORT BEACH, CA 92658•6450 PHONE (949) 756-0271 / FAX (619) 699-0901 LICENSE #0C36861 Member CITY OF NATIONAL CITY MICHAEL GOMEZ 1243 NATIONAL CITY BLVD. NATIONAL CITY, CA 91950 1 09/23/2021 TI-AS CER11F1CATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RJGHTS UPON THE CERTIFICATE HOLDER THIS CERTIFCCATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BELOW. THIS CERTIFICATE OF COVERAGE OOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURERS}, AUTHORIZED REPRESENTATIVE OR PRODUCER AND THE CERTIFICATE HOLDER IMPORTANT: If the oertificate holder is an ADDITIONAL INSURED and/or requesting a WAIVER OF SUBROGATION, the Memorandums of Coverage must be endorsed. A statement on this certificate does not confer rights to the certificate hofder in lieu of such endorsement(s). COVERAGE A Public Risk Innovation, Solutions, and Management AFFORDED COVERAGE AFFORDED B COVERAGE AFFORDED C COVERAGE AFFORDED D Coverages THIS IS TO CERTIFY THAT THE MEMORANDUMS OF COVERAGE LISTED BELOW HAVE BEEN ISSUED TO THE MEMBER NAMED ABOVE FOR THE 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 COVERAGE AFFORDED BY THE MEMORANDUMS DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS, AND CONDITIONS OF SUCH MEMORANDUMS. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS, CO LTR A TYPE OF COVERAGE MEMORANDUM NUMBER COVERAGE EFFECTIVE DATE COVERAGE EXPIRATION DATE X Excess General Liability X General Liability Aggregate X Auto Liability PRISM PE 21 EL-102 07101/2021 07/01/2022 Description of Operations/LocationsNe hicles/Special Items: LIABILITY LIMITS $1,000,000 $2,000,000 $1,000,000 Limits inclusive of the Members Self -Insured Retention of $250,000 AS RESPECTS LICENSE AGREEMENT BETWEEN CITY OF NATIONAL CITY POLICE DEPARTMENT AND SAN DIEGO COUNTY FOR USE OF PROPERTY LOCATED AT 440 ALTA ROAD, SAN DIEGO, CA AND INCLUDES LARD FOR SHOOTING RANGES AND STRUCTURES THAT COMPRISE SAN DIEGO REGIONAL FIREARMS TRAINING CENTER. SAN DIEGO COUNTY IS INCLUDED AS AN ADDITIONAL COVERED PARTY, BUT ONLY INSOFAR AS THE OPERATIONS UNDER THIS CONTRACT ARE CONCERNED. THE AUTHORITY WAIVES ITS RIGHTS OF SUBROGATION AGAINST THE ADDITIONAL COVERED PARTY(IES) PURSUANT TO ENDORSEMENT NUMBER OE8. Certificate Holder SAN DIEGO COUNTY DEPARTMENT OF GENERAL SERVICES ASSET MANAGEMENT DIVISION 5560 OVERLAND AVE, STE 410 SAN DIEGO, CA 92123 Cancellation SHOULD ANY OF THE ABOVE DESCRIBED MEMORANDUMS OF COVERAGES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WIL BE DELIVERED IN ACCORDANCE WITH THE MEMORANDUMS OF COVERAGE PROVISIONS. AUTHORIZED REPRESENTATIVE dip Pub!ic Risk InnovatIon, Solutions, and Management PAGE 1 OF 2 44 of 324 ENDORSEMENT NO. U-1 PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT GENERAL LIABILITY 1 ADDITIONAL. COVERED PARTY AMENDATORY ENDORSEMENT It is agreed that the `Covered Party, Covered Persons or Eritities" section of the Memorandum is amended to include the person or organization named on the Certificate of Coverage, but only with respect to liability arising out of premises owned by or rented to the Member, or operations performed by or on behalf of the Member or such person or organization so designated. Coverage provided under this endorsement is limited to the lesser of the limits stated on the Certificate of Coverage or the minimum limits required by contract. ADDITIONAL COVERED PARTY NAME OF PERSON OR ORGANIZATION SCHEDULED PER ATTACHED CERTIFICATE OF COVERAGE AS RESPECTS: PER ATTACHED CERTIFICATE OF COVERAGE It is further agreed that nothing herein shall act to increase PR1SM's limit of liability. This endorsement is part of the Memorandum and takes effect on the effective date of the Memorandum unless another effective date is shown below. All other terms and conditions remain unchanged. Effective Date Issued to: ALL MEMBERS Issue Date: June 25. 2021 de A � orized Representative Public Risk Innovation, Solutions, and Management Memorandum No. PRISM 21 EL-0O PAGE2OF2 45 of 324 ENDORSEMENT NO. Ma PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT GENERAL LIABILITY 1 AMENDATORY ENDORSEMENT - WAIVER OF SUBROGATION It is understood and agreed that Condition 8. SUBROGATION, of the Memorandum to which it is attached, is deleted in its entirety and replaced by the following: 8. SUBROGATION PRISM shall be subrogated to the extent of any payment hereunder to all the covered party's rights of recovery therefore; and the covered party shall do nothing after loss to prejudice such rights and shall do everything necessary to secure such rights. Any amount so recovered shall be apportioned as follows: Any interest (including the covered pa's) having paid an amount in excess of the self - insured retention, plus the limit of liability, hereunder shall be reimbursed first to the extent of actual payment. PRISM shall be reimbursed next to the extent of its actual payment hereunder. If any balance then remains unpaid, it shall be applied to reimburse the covered party. The expenses of all such recovery proceedings shall be apportioned in the ratio of respective recoveries. If there is no recovery in proceedings conducted solely by PRISM, it shall bear the expenses thereof. Notwithstanding the above, PRISM waives its rights of subrogation against any person or organization with whom the covered party has entered into a written agreement that includes a waiver of subrogation, but only if the agreement is in effect before the injury, damage or liability occurs. It is further agreed that nothing herein shall act to increase PRISM's limit of liability. This endorsement is part of the Memorandum and takes effect on the effective date of the Memorandum unless another effective date is shown below. All other terms and conditions remain unchanged. Effective Date: Issued To: ALL MEMBERS Issue Date: June 25, 2021 A'trthorized Representative Public Risk Innovation, Solutions, and Management Memorandum No. PRISM 21 ELOO 46 of 324 CERTIFICATE NO. ISSUE DATE WC4239 CERTIFICATE OF COVERAGE 09/23/2021 PUBLIC RISK INNOVATIONS SOLUTIONS, AND CIO ALLIANT INSURANCE MANAGEMENT SERVICES, INC. THIS RIGHTS AFFIRMATIVELY AFFORDED CONTRACT PRODUCER, CERTCFICATE UPON BELOW. BETWEEN AND THE OR THE IS CERTIFICATE NTHS ISSUED CERTIFICATE THE O VELY ERTIFICATE ISSUING AS A HOLDER. AMEND, MATTER INSURER(S), BOLDER OF EXTEND OF THIS COVERAGE INFORMATION CERTIFICATE OR AUTHORIZED ALTER DOES THE ONLY NOT DOES REPRESENTATIVE AND NOT COVERAGE CONSTITITUE CONFERS NO A OR 1 POBOXB45O NEWPORT BEACH, CA 926584450 PHONE (949) 7564)271 / FAX (619) 699O9O1 IMPORTANT: Memorandums rights to the certificate If the of certificate Coverage ho!derrnkeuofsuchendorsement(s). must holder be is endorsed. requesting a A statement WAIVER on OF this SUBROGATION, the certificate does not confer 11 LICENSE #0C36861 I COVERAGE A - See attached schedule of insurers AFFORDED Member: COVERAGE AFFORDED B . . .- CITY OF NATIONAL CITY MICHAEL GOMEZ COVERAGE 1243 NATIONAL NATIONAL CITY, CITY CA 91950 BLVD. C AFFORDED COVERAGE D AFFORDED Coverages THIS IS TO CERTIFY THAT THE MEMORANDUMS OF COVERAGE AND POLICIES LISTED BELOW HAVE BEEN ISSUED TO THE MEMBER NAMED ABOVE FOR THE 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 COVERAGE HEREIN THE TERMS, EXCLUSIONS, AND AFFORDED BY THE MEMORANDUMS AND POLICIES DESCRIBED IS SUBJECT TO ALL OF SUCH AHD POLICIES. CONDITIONS MEMORANDUMS CO 1 MEMORANDUM/ COVERAGE COVERAGE I TYPE OF COVERAGE LIABILITY LIMITS LTR I, POLICY NUMBER EFFECTIVE DATE EXPIRATION GATE ! A EXCESS WORKERS' ' See attached 07/01/2021 07/01/2022 WORKERS' , COMPENSATION & Schedule of COMPENSATION: Insurers for 1 Difference between EMPLOYER'S LIABILITY policy 1 numbers _ ______.----------------- Statutory $500000Retention EMPLOYERS' LIABILITY: Difference $5000,000 Retention and between and Member's Members L[MITS APPLY PER OCCURRENCE FOR ALL PROGRAM MEMBERS COMBINED. Description of Operations/LocationsNehicles/Special Items AS RESPECTS AGREEMENT BETWEEN NATIONAL CITY POLICE DEPARTMENT AND SAN EVIDENCE OF COVERAGE FOR LIICENSE CITY OF DIEGO COUNTY FOR USE OF PROPERTY LOCATED AT 440 ALTA ROAD, SAN DIEGO, CA AND INCLUDES LAND FOR SHOOTING RANGES TRAINING AND STRUCTURES THAT COMPRISE SAN DIEGO REGIONAL FIREARMS CENTER. THE AUTHORITY WAIVES ITS RIGHTS OF SUBROGATION AGAINST SAN DIEGO COUNTY PURSUANT TO ENDORSEMENT NUMBER U4-2. Certificate SAN DIEGO Holder COUNTY Cancellation SHOULD BE ACCORDANCE CANCELLED ANY _ OF WITH THE BEFORE THE ABOVE THE MEMORANDUMS DESCRIBED EXPIRATION MEMORANDUMS THEREOF, OF COVERAGE/POUCIES NOTICE OF COVERAGEIPOLICIES WILL BE DELIVERED PROVISIONS. IN 1 AUTHORIZED Public Risk Innovation, REPRESENTATIVE So1utons, and Management DEPARTMENT OF GENERAL SERVICES ASSET MANAGEMENT DIVISION 5560 OVERLAND AVE, STE 410 SAN DIEGO, CA 92123 47 of 324 PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT EXCESS WORKERS' COMPENSATION PROGRAM 2021/2022 SCHEDULE OF INSURERS CITY OF NATIONAL CITY PROVIDER Public Risk Innovation, Solutions, and Management Liberty Insurance Corporation MEMORANDUM / POLICY NUMBER PRISM PE 21 EWC58 EW764N-444785-01 1 LIMIT Workers' Compensation: $50,000,000 each accident/each employee for disease (Difference between $50,000,000 and the individual member's retention) Employers' Liability: $5,000,000 each accident/each employee for disease (Difference between $5,000,000 and the individual members retention) Statutory each accident/each employee for disease excess of $50,000,000 48 of 324 ENDORSEMENT NO. U-2 PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT EXCESS WORKERS' COMPENSATION WAIVER OF SUBROGATION ENDORSEMENT It is understood and agreed that Section VIII. SUBROGATION of the CONDITIONS section of the Memorandum of Coverage is deleted in its entirety and replaced by the following: VIII. SUBROGATION: In the event of any payment under this Memorandum, PRISM shall be subrogated, to the extent of such payment, to all the Covered Party's rights of recovery therefore, and the Covered Party shall execute all papers required and shall do everything that may be necessary to secure such rights. Any amount recovered as a result of such proceedings, together with all expenses necessary to the recovery of any such amount shall be apportioned as follows: PRISM shall first be reimbursed to the extent of its actual payment hereunder. If any balance then remains, said balance shall be applied to reimburse the Covered Party. The expenses of all proceedings necessary to the recovery of such amount shall be apportioned beeen the Covered Party and PRISM in the ratio of their respective recoveries as finally settled. If there should be no recovery in proceedings instituted solely on the initiative of PRISM, the expenses thereof shall be borne by PRISM. However, in the event of any loss payment under this Memorandum for which you have waived the right of recovery in a written contract entered into prior to the loss, we hereby agree to also waive our right of recovery but only with respect to such loss. It is further agreed that nothing herein shall act to increase PRISM's limit of indemnity. This endorsement is part of the Memorandum of Coverage and takes effect on the effective date of the Memorandum of Coverage unless another effective date is shown below. All other terms and conditions remain unchanged. Effective Date: Issued to: Issue Date: orized Representative Public Risk Innovation, Solutions, and Management ALL MEMBERS June 25, 2021 Memorandum No.: PRISM 21 EWG-0O 49 of 324 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City ratifying and authorizing the City Manager to execute a one year agreement between the City of National City, Alpha Project, and City of Chula Vista to provide a homeless emergency assistance program; and appropriate PLHA funds to the Alpha Project in the amount of $60,000. (Housing Authority) Please scroll down to view the backup material. 50 of 324 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 19, 2021 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City, California, ratifying and authorizing the City Manager to execute a one year agreement between the City of National City, Alpha Project, and City of Chula Vista to provide a homeless emergency assistance program; and appropriate PLHA funds to the Alpha Project in the amount of $60,000. PREPARED BY: Angelita Palma Housing Programs Manager PHONE: (619) 336-4219 EXPLANATION: See attached explanation. DEPARTMENT: Housing Authority APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: Finance APPROVED• MIS Revenue Account: 501-45477-3463 - Permanent Local Housing Allocation - $60,000 Expenditure Account: 501-419-477-* - Permanent Local Housing Allocation- $60,000 Funds are available through appropriations authorized by City Council Resolution 2021-90 on June 15, 2021. There is no match required from the City's General Fund for the agreement with the Alpha Project. ENVIRONMENTAL REVIEW: No CEQA Exemption - This action is not subject to review under the California Environmental Quality Act (CEQA). ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: Not applicable to this report. ATTACHMENTS: 1. Background 2. Agreement 3. Resolution 51 of 324 Attachment No. 1 City of National City October 5, 2021 Staff Report Explanation Resolution of the City Council of the City of National City, California, ratifying and authorizing the City Manager to execute a one year agreement between the City of National City, Alpha Project, and City of Chula Vista to provide a homeless emergency assistance program; and appropriate PLHA funds to the Alpha Project in the amount of $60,000. In 2018, the State enacted HEAP as part of California Senate Bill (SB) 850, which provided grants to cities and counties to address homelessness throughout the State. HEAP funds provided one- time, flexible funds to address immediate homelessness challenges, including prevention, criminal justice diversion programs to unsheltered individuals with mental health needs, and emergency aid. Recognizing the effects of homelessness were felt regionally, a new partnership was formed with the City of Chula Vista to identify issues impacting our respective cities and develop solutions in the same manner. In May 2019, the City successfully applied for the Chula Vista -National City Regional Homeless Outreach Program. As a result, the City was awarded $905,958 in HEAP funds over two years, ending May 31, 2021. In 2019, to continue the mission of addressing the homelessness crisis, the State enacted Assembly Bill 101. This action created the Homeless Housing Assistance Program (HHAP), providing additional funding to support local jurisdictions further and continue building on regional collaboration developed through previous rounds of HEAP funding. The Regional Task Force on Homelessness (RTFH) awarded $179,000 in HHAP funds to the City of Chula Vista in partnership with the City of National City. On June 15, 2021, the City Council approved Resolution 2021-90, the First Amendment to the Permanent Local Housing Allocation (PLHA) Plan. Section 3 of the Resolution approved entering into an agreement with Alpha Project subject to City Council ratification to implement stated goals in the PLHA Plan. Over the past two years, the Alpha Project has established supportive relationships and enhanced the participation in the necessary services of National City's homeless population. The 3-Party Agreement with the use of HHAP and PLHA funding, leveraged with Housing dollars, further enhances the ongoing efforts by the National City Police Department's (NCPD) Homeless Outreach Team (HOT), the McAlister Institute, and various social service agencies. The 3-Party Agreement will allow the Alpha Project to continue outreach, engage unsheltered individuals and families, and provide case management, housing navigation, and transportation. While the ultimate goal is to have a homeless person move into permanent housing, steps towards stability in housing look different for each person. Participation in each of those steps, which might include obtaining an identification card, signing up for benefits, or seeking health care, represents an achieved goal. Each outreach touchpoint builds trust and relationships that allow our homeless to re-engage with hope for self-sufficiency and more stable housing. Through this action, staff is seeking Council's approval to enter into a 3-Party Agreement between the City, Alpha Project, and City of Chula Vista, and appropriate $60,000 in PLHA funds to the Alpha Project, all of which are necessary to implement and administer services. Page 1 of 1 52 of 324 Attachment No. 2 CITY OF CHULA VISTA AND CITY OF NATIONAL CITY CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT WITH ALPHA PROJECT This Agreement is entered into effective as of August 24, 2021 ("Effective Date") by and between the City of Chula Vista, a chartered municipal corporation, ("City") and the City of National City, a chartered municipal corporation, ("National City") and Alpha Project ("Contractor/Service Provider") (collectively, the "Parties" and, individually, a "Party") with reference to the following facts: RECITALS WHEREAS, the City of Chula Vista, National City, and Alpha Project partnered to submit a Homeless Housing Assistance Program ("HHAP") funding application with the Regional Task Force for Homeless ("RTFH") to provide services to address homelessness; and WHEREAS, the application for HHAP was approved by the RFTH, but for an amount lower than requested, with the City of Chula Vista acting as the funding "pass through" entity under the terms of a subrecipient agreement with RFTH (Agreement No. HHAP-2021-City of Chula Vista -1); and, WHEREAS, THE City, National City, and Alpha Project desire to implement the programs/projects to be funded by the HHAP grant, with the services required to be provided by Contractor/Service Provider under this agreement split equally between City and National City; and, WHEREAS, Contractor/Service Provider warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Contractor/Service Provider to City in accordance with the time frames and the terms and conditions of this Agreement. [End of Recitals. Next Page Starts Obligatory Provisions.] 1 City of Chula Vista Agreement No.: 2021-076 Consultant Name: Alpha Project' Rev. 10/24/17 Page 1 of 19 53 of 324 Attachment No. 2 OBLIGATORY PROVISIONS NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City, National City, and Contractor/Service Provider hereby agree as follows: 1. SERVICES 1.1 Required Services. Contractor/Service Provider agrees to perform the services, and deliver to City and National City the "Deliverables" (if any) described in the attached Exhibit A, incorporated into the Agreement by this reference, within the time frames set forth therein, time being of the essence for this Agreement. The services and/or Deliverables described in Exhibit A shall be referred to herein as the "Required Services." 1.2 Reductions in Scope of Work. City may independently, or upon request from Contractor/Service Provider, from time to time, reduce the Required Services to be performed by the Contractor/Service Provider under this Agreement. Upon doing so, City, and Contractor/Service Provider, as applicable, agree to meet and confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction. 1.3 Additional Services. Subject to compliance with the City's Charter, codes, policies, procedures and ordinances governing procurement and purchasing authority, City may request Contractor/Service Provider provide additional services related to the Required Services ("Additional Services"). If so, City and Contractor/Service Provider agree to meet and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the Additional Services. Unless otherwise agreed, compensation for the Additional Services shall be charged and paid consistent with the rates and terms already provided therein. Once added to Exhibit A, "Additional Services" shall also become "Required Services" for purposes of this Agreement. 1.4. Reduction in Scope of Work/Additional Services. Should National City desire a reduction in the Scope of Work or wish to add Additional Services, the City and Alpha Project agree to meet and confer in good faith to negotiate an Amendment of this agreement to add or reduce services under this Agreement. 1.5 Standard of Care. Contractor/Service Provider expressly warrants and agrees that any and all Required Services hereunder shall be performed in accordance with the highest standard of care exercised by members of the profession currently practicing under similar conditions and in similar locations. 1.6 No Waiver of Standard of Care. Where approval by City or National City is required, it is understood to be conceptual approval only and does not relieve the Contractor/Service Provider of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Contractor/Service Provider or its subcontractors. 1.7 Security for Performance. In the event that Exhibit A Section 4 indicates the need for Contractor/Service Provider to provide additional security for performance of its duties under this 2 City of Chula Vista Agreement No.: 2021-076 Consultant Name: Alpha Project) Rev. 10/24/17 Page 2 of 19 54 of 324 Attachment No. 2 Agreement, Contractor/Service Provider shall provide such additional security prior to commencement of its Required Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by the City Attorney for the City of Chula Vista. 1.8 Compliance with Laws. In its performance of the Required Services, Contractor/Service Provider shall comply with any and all applicable federal, state and local laws, including the Chula Vista Municipal Code and the National City Municipal Code. 1.9 Business License. Prior to commencement of work, Contractor/Service Provider shall obtain business licenses from City and National City. 1.10 Subcontractors. Prior to commencement of any work, Contractor/Service Provider shall submit for City's and National City's information and approval a list of any and all subcontractors to be used by Contractor/Service Provider in the performance of the Required Services. Contractor/Service Provider agrees to take appropriate measures necessary to ensure that all subcontractors and personnel utilized by the Contractor/Service Provider to complete its obligations under this Agreement comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local. In addition, if any subcontractor is expected to fulfill any responsibilities of the Contractor/Service Provider under this Agreement, Contractor/Service Provider shall ensure that each and every subcontractor carries out the Contractor/Service Provider's responsibilities as set forth in this Agreement. 1.11 Term. This Agreement shall commence on the earlier to occur of the Effective Date or Contractor/Service Provider's commencement of the Required Services hereunder, and shall terminate when the Parties have complied with all their obligations hereunder; provided, however, provisions which expressly survive termination shall remain in effect. 1.11 RTFH Agreement. This Agreement is subject to the terms of the related subrecipient agreement with RFTH (Agreement No. HHAP-2021-City of Chula Vista-1; referred to as "Subrecipient Agreement") which is hereby fully incorporated by reference into this Agreement. In the event of any conflict of terms between this Agreement and the Subrecipient Agreement, the Subrecipient Agreement shall govern. 2. COMPENSATION 2.1 General. For satisfactory performance of the Required Services, City, as the fiscal agent pursuant to HHAP agreement number HHAP-2021-City of Chula Vista-1, agrees to compensate Contractor/Service Provider in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and payment are set forth in this Section 2. 2.2 Detailed Invoicing. Contractor/Service Provider agrees to provide City with a detailed invoice for services performed each month, within thirty (30) days of the end of the month in which the services were performed, unless otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date of the Agreement. All charges must be presented in a line item format with each task separately explained in reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced to date, and the remaining amount available under any approved budget. Contractor/Service Provider must 3 City of Chula Vista Agreement No.: 2021-076 Consultant Name: Alpha Project) Rev. 10/24/17 Page 3 of 19 55 of 324 Attachment No. 2 obtain prior written authorization from City for any fees or expenses that exceed the estimated budget. 2.3 Payment to Contractor/Service Provider. Upon receipt of a properly prepared invoice and confirmation that the Required Services detailed in the invoice have been satisfactorily performed to the Satisfaction of City and National City, City shall pay Contractor/Service Provider for the invoice amount within thirty (30) days. Payment shall be made in accordance with the terms and conditions set forth in Exhibit A and section 2.4, below. At City's discretion, invoices not timely submitted may be subject to a penalty of up to five percent (5%) of the amount invoiced. 2.4 Retention Policy. City shall retain ten percent (10%) of the amount due for Required Services detailed on each invoice (the "holdback amount"). Upon City review and determination of Project Completion, the holdback amount will be issued to Contractor/Service Provider. 2.5 Reimbursement of Costs. City may reimburse Contractor/Service Provider's out-of- pocket costs incurred by Contractor/Service Provider in the performance of the Required Services if negotiated in advance and included in Exhibit A. Unless specifically provided in Exhibit A, Contractor/Service Provider shall be responsible for any and all out-of-pocket costs incurred by Contractor/Service Provider in the performance of the Required Services. 2.6 Exclusions. City shall not be responsible for payment to Contractor/Service Provider for any fees or costs in excess of any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A. City shall also not be responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of Contractor/Service Provider, its agents, employees, or subcontractors. 2.7 Payment Not Final Approval. Contractor/Service Provider understands and agrees that payment to the Contractor/Service Provider or reimbursement for any Contractor/Service Provider costs related to the performance of Required Services does not constitute a City final decision regarding whether such payment or cost reimbursement is allowable and eligible for payment under this Agreement, nor does it constitute a waiver of any violation by Contractor/Service Provider of the terms of this Agreement. If City determines that Contractor/Service Provider is not entitled to receive any amount of compensation already paid, City will notify Contractor/Service Provider in writing and Contractor/Service Provider shall promptly return such amount. 3. INSURANCE 3.1 Required Insurance. Contractor/Service Provider must procure and maintain, during the period of performance of Required Services under this Agreement, and for twelve months after completion of Required Services, the policies of insurance described on the attached Exhibit B, incorporated into the Agreement by this reference (the "Required Insurance"). The Required Insurance shall also comply with all other terms of this Section. 3.2 Deductibles and Self -Insured Retentions. Any deductibles or self -insured retentions relating to the Required Insurance must be disclosed to and approved by City in advance of the commencement of work. 4 City of Chula Vista Agreement No.: 2021-076 Consultant Name: Alpha Project) Rev. 10/24/17 Page 4 of 19 56 of 324 Attachment No. 2 3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best's rating of A V or better, or, if insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best's rating of no less than A X. For Workers' Compensation Insurance, insurance issued by the State Compensation Fund is also acceptable. 3.4 Subcontractors. Contractor/Service Provider must include all sub-Contractor/Service Providers/sub- contractors as insureds under its policies and/or furnish separate certificates and endorsements demonstrating separate coverage for those not under its policies. Any separate coverage for sub-Contractor/Service Providers must also comply with the terms of this Agreement. 3.5 Additional Insureds. City and National City, including their officers, officials, employees, agents, and volunteers must be named as additional insureds with respect to any policy of general liability, automobile, or pollution insurance specified as required in Exhibit B or as may otherwise be specified by City's Risk Manager. The general liability additional insured coverage must be provided in the form of an endorsement to the Contractor/Service Provider's insurance using ISO CG 2010 (11/85) or its equivalent; such endorsement must not exclude Products/Completed Operations coverage. 3.6 General Liability Coverage to be "Primary." Contractor/Service Provider's general liability coverage must be primary insurance as it pertains to City and National City, their officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City or National City, their officers, officials, employees, or volunteers is wholly separate from the insurance provided by Contractor/Service Provider and in no way relieves Contractor/Service Provider from its responsibility to provide insurance. 3.7 No Cancellation. No Required Insurance policy may be canceled by either Party during the required insured period under this Agreement, except after thirty days' prior written notice to City and National City by certified mail, return receipt requested. Prior to the effective date of any such cancellation Contractor/Service Provider must procure and put into effect equivalent coverage(s). 3.8 Waiver of Subrogation. Contractor/Service Provider's insurer(s) will provide a Waiver of Subrogation in favor of the City and National City for each Required Insurance policy under this Agreement. In addition, Contractor/Service Provider waives any right it may have or may obtain to subrogation for a claim against City and National City. 3.9 Verification of Coverage. Prior to commencement of any work, Contractor/Service Provider shall furnish City and National City with original certificates of insurance and any amendatory endorsements necessary to demonstrate to City and National City that Contractor/Service Provider has obtained the Required Insurance in compliance with the terms of this Agreement. The words "will endeavor" and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents, or representatives" or any similar language must be deleted from all certificates. The required certificates and endorsements should otherwise be on industry standard forms. The City and National City reserve the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements 5 City of Chula Vista Agreement No.: 2021-076 Consultant Name: Alpha Project) Rev. 10/24/17 Page 5 of 19 57 of 324 Attachment No. 2 evidencing the coverage required by these specifications. 3.10 Claims Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are required and are provided on a claims -made form, the following requirements also apply: a. The "Retro Date" must be shown, and must be before the date of this Agreement or the beginning of the work required by this Agreement. b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the work required by this Agreement. c. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a "Retro Date" prior to the effective date of this Agreement, the Contractor/Service Provider must purchase "extended reporting" coverage for a minimum of five (5) years after completion of the work required by this Agreement. d. A copy of the claims reporting requirements must be submitted to the City for review. 3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed to limit the Contractor/Service Provider's obligations under this Agreement, including Indemnity. 3.12 Additional Coverage. To the extent that insurance coverage provided by Contractor/Service Provider maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher limits maintained. 4. INDEMNIFICATION 4.1. General. To the maximum extent allowed by law, Contractor/Service Provider shall protect, defend, indemnify and hold harmless City and National City, their elected and appointed officers, agents, employees and volunteers (collectively, "Indemnified Parties"), from and against any and all claims, demands, causes of action, costs, expenses, (including reasonable attorneys' fees and court costs), liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Contractor/Service Provider, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Required Services, the results of such performance, or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the Indemnified Parties which may be in combination with the active or passive negligent acts or omissions of the Contractor/Service Provider, its employees, agents or officers, or any third party. 4.2. Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the forgoing, if the services provided under this Agreement are design professional services, as defined by California Civil Code section 2782.8, as may be amended 6 City of Chula Vista Agreement No.: 2021-076 Consultant Name: Alpha Project) Rev. 10/24/17 Page 6 of 19 58 of 324 Attachment No. 2 from time to time, the defense and indemnity obligation under Section 1, above, shall be limited to the extent required by California Civil Code section 2782.8. 4.3 Costs of Defense and Award. Included in Contractor/Service Provider's obligations under this Section 4 is Contractor/Service Provider's obligation to defend, at Contractor/Service Provider's own cost, expense and risk, any and all suits, actions or other legal proceedings that may be brought or instituted against one or more of the Indemnified Parties. Subject to the limitations in this Section 4, Contractor/Service Provider shall pay and satisfy any judgment, award or decree that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses and costs incurred by any of them. 4.4. Contractor/Service Provider's Obligations Not Limited or Modified . Contractor/Service Provider's obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent declaration by the Contractor/Service Provider. Furthermore, Contractor/Service Provider's obligations under this Section 4 shall in no way limit, modify or excuse any of Contractor/Service Provider's other obligations or duties under this Agreement. 4.5. Enforcement Costs. Contractor/Service Provider agrees to pay any and all costs City and National City incur in enforcing Contractor/Service Provider's obligations under this Section 4. 4.6 Survival. Contractor/Service Provider's obligations under this Section 4 shall survive the termination of this Agreement. 5. FINANCIAL INTERESTS OF CONTRACTOR/SERVICE PROVIDER. 5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code require certain government officials and Contractor/Service Providers performing work for government agencies to publicly disclose certain of their personal assets and income using a Statement of Economic Interests form (Form 700). In order to assure compliance with these requirements, Contractor/Service Provider shall comply with the disclosure requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference. 5.2 Disclosures; Prohibited Interests. Independent of whether Contractor/Service Provider is required to file a Form 700, Contractor/Service Provider warrants and represents that it has disclosed to City any economic interests held by Contractor/Service Provider, or its employees or subcontractors who will be performing the Required Services, in any real property or project which is the subject of this Agreement. Contractor/Service Provider warrants and represents that it has not employed or retained any company or person, other than a bona fide employee or approved subcontractor working solely for Contractor/Service Provider, to solicit or secure this Agreement. Further, Contractor/Service Provider warrants and represents that it has not paid or agreed to pay any company or person, other than a bona fide employee or approved subcontractor working solely for Contractor/Service Provider, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Contractor/Service Provider further warrants and represents that no officer or employee of City, has any interest, whether contractual, non -contractual, financial or otherwise, in this transaction, the proceeds hereof, or in the business of Contractor/Service Provider or 7 City of Chula Vista Agreement No.: 2021-076 Consultant Name: Alpha Project) Rev. 10/24/17 Page 7 of 19 59 of 324 Attachment No. 2 Contractor/Service Provider's subcontractors. Contractor/Service Provider further agrees to notify City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. For breach or violation of any of these warranties, City shall have the right to rescind this Agreement without liability. 5.3 National City Requirements. National City may also require to Contractor/Service Provider to abide by the terms of this Section 5 by providing written notice to Contractor/Service Provider of such requirement. 6. REMEDIES 6.1 Termination for Cause. If for any reason whatsoever Contractor/Service Provider shall fail to perform the Required Services under this Agreement, in a proper or timely manner, or if Contractor/Service Provider shall violate any of the other covenants, agreements or conditions of this Agreement (each a "Default"), in addition to any and all other rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to terminate this Agreement by giving five (5) days written notice to Contractor/Service Provider. Such notice shall identify the Default and the Agreement termination date. If Contractor/Service Provider notifies City of its intent to cure such Default prior to City's specified termination date, and City agrees that the specified Default is capable of being cured, City may grant Contractor/Service Provider up to ten (10) additional days after the designated termination date to effectuate such cure. In the event of a termination under this Section 6.1, Contractor/Service Provider shall immediately provide City any and all "Work Product" (defined in Section 7 below) prepared by Contractor/Service Provider as part of the Required Services. Such Work Product shall be City's sole and exclusive property as provided in Section 7 hereof. Contractor/Service Provider may be entitled to compensation for work satisfactorily performed prior to Contractor/Service Provider's receipt of the Default notice; provided, however, in no event shall such compensation exceed the amount that would have been payable under this Agreement for such work, and any such compensation shall be reduced by any costs incurred or projected to be incurred by City as a result of the Default. 6.2 Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement, or any portion of the Required Services, at any time and for any reason, with or without cause, by giving specific written notice to Contractor/Service Provider of such termination or suspension at least fifteen (15) days prior to the effective date thereof. Upon receipt of such notice, Contractor/Service Provider shall immediately cease all work under the Agreement and promptly deliver all "Work Product" (defined in Section 7 below) to City. Such Work Product shall be City's sole and exclusive property as provided in Section 7 hereof. Contractor/Service Provider shall be entitled to receive just and equitable compensation for this Work Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily 8 I City of Chula Vista Agreement No.: 2021-076 Consultant Name: Alpha Project Rev. 10/24/17 Page 8 of 19 60 of 324 Attachment No. 2 performed as of the date of the termination/suspension notice plus any additional remaining Required Services requested or approved by City in advance that would maximize City's value under the Agreement. 6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this Section, Contractor/Service Provider hereby expressly waives any and all claims for damages or compensation as a result of such termination against both the City and National City except as expressly provided in this Section 6. 6.4 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement against City unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the provisions of which, including such policies and procedures used by City in the implementation of same, are incorporated herein by this reference. Upon request by City, Contractor/Service Provider shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. This paragraph applies to National City if it is pursuing any suit or arbitration against City. In additional, this section applies to Contractor/Service Provider is pursuing any suit of arbitration against National City. 6.5 Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in San Diego County, State of California. 6.6 Service of Process. Contractor/Service Provider agrees that it is subject to personal jurisdiction in California. If Contractor/Service Provider is a foreign corporation, limited liability company, or partnership that is not registered with the California Secretary of State, Contractor/Service Provider irrevocably consents to service of process on Contractor/Service Provider by first class mail directed to the individual and address listed under "For Legal Notice," in section 1.B. of Exhibit A to this Agreement, and that such service shall be effective five days after mailing. 7. OWNERSHIP AND USE OF WORK PRODUCT All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced in whole or in part under this Agreement in connection with the performance of the Required Services (collectively "Work Product") shall be the sole and exclusive property of City. No such Work Product shall be subject to private use, copyrights or patent rights by Contractor/Service Provider in the United States or in any other country without the express, prior written consent of City. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any such Work Product, without requiring any permission of Contractor/Service Provider, except as may be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws. With respect to computer files containing data generated as Work Product, Contractor/Service Provider shall make available to City, upon reasonable written request by City, the necessary functional computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 9 ity of Chula Vista Agreement No.: 2021-076 onsultant Name: Alpha Project E Rev. 10/24/17 Page 9 of 19 61 of 324 Attachment No. 2 8. GENERAL PROVISIONS 8.1 Amendment. This Agreement may be amended, but only in writing signed by all Parties. 8.2 Assignment. City and National City would not have entered into this Agreement but for Contractor/Service Provider's unique qualifications and traits. Contractor/Service Provider shall not assign any of its rights or responsibilities under this Agreement, nor any part hereof, without City's prior written consent, which City may grant, condition or deny in its sole discretion. 8.3 Authority. The person(s) executing this Agreement for Contractor/Service Provider warrants and represents that they have the authority to execute same on behalf of Contractor/Service Provider and to bind Contractor/Service Provider to its obligations hereunder without any further action or direction from Contractor/Service Provider or any board, principle or officer thereof. 8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one Agreement after each Party has signed such a counterpart. 8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein by reference. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 8.6 Record Retention. During the course of the Agreement and for three (3) years following completion of the Required Services, Contractor/Service Provider agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the performance of the Agreement, including accounting for costs and expenses charged to City and National City, including such records in the possession of sub-contractors/sub- Contractor/Service Providers. 8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the Parties. 8.8 Independent Contractor. Contractor/Service Provider is and shall at all times remain as to City and National City a wholly independent contractor. Neither City and National City nor any of their officers, employees, agents or volunteers shall have control over the conduct of Contractor/Service Provider or any of Contractor/Service Provider's officers, employees, or agents ("Contractor/Service Provider Related Individuals"), except as set forth in this Agreement. No Contractor/Service Provider Related Individuals shall be deemed employees of City or National City, and none of them shall be entitled to any benefits to which City or National City employees are entitled, including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Furthermore, neither City or National City will withhold state or federal income tax, social security tax or any other payroll tax with respect to any Contractor/Service Provider Related Individuals; instead, Contractor/Service Provider shall be solely responsible for the payment of same and shall hold the City and National City harmless with respect to same. Contractor/Service Provider shall not at any time or in any manner represent that it or any of its Contractor/Service Provider Related Individuals are employees or agents of City , rity of Chula Vista Agreement No.: 2021-076 onsultant Name: Alpha Project Rev. 10/24/17 Page 10 of 19 62 of 324 Attachment No. 2 or National City. Contractor/Service Provider shall not incur or have the power to incur any debt, obligation or liability whatsoever against City or National City, or bind City or National City in any manner. 8.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any Party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in writing. (End of page. Next page is signature page.) i i ity of Chula Vista Agreement No.: 2021-076 onsultant Name: Alpha Project Rev. 10/24/17 Page 11 of 19 63 of 324 Attachment No. 2 SIGNATURE PAGE CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT IN WITNESS WHEREOF, by executing this Agreement where indicated below, City, National City, and Contractor/Service Provider agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and consent to bound by same, and that they are freely entering into this Agreement as of the Effective Date. ALPHA PROJECT BY: Bob McElroy, President and CEO CITY OF CHULA VISTA CITY OF NATIONAL CITY BY: BY: Maria Kachadoorian, Brad Raulston Chula Vista City Manager National City City Manager ATTEST BY: BY: Kerry K. Bigelow, MMC Luz Molina Chula Vista City Clerk National City City Clerk APPROVED AS TO FORM BY: BY: Glen R. Googins Gabriela M. Torres Chula Vista City Attorney National City Deputy City Attorney z rity of Chula Vista Agreement No.: 2021-076 onsultant Name: Alpha Project Rev. 10/24/17 Page 12 of 19 64 of 324 Attachment No. 2 1. EXHIBIT A SCOPE OF WORK AND PAYMENT TERMS Contact People for Contract Administration and Legal Notice A. City Contract Administration: Angelica Davis, Sr Management Analyst 276 Fourth Avenue; Building C 619-691-5036 adavis@chulavistaca.gov For Legal Notice Copy to: City of Chula Vista City of Chula Vista - City Attorney Glenn Googins, City Attorney 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5037 ggoogins@chulavistaca.gov And, City Contract Administration: Housing Programs Manager City of National City Housing Authority 1243 National City Blvd. National City, CA 91950-430 619-336-4219 E-mail: apalma@nationalcityca.gov For Legal Notice Copy to: City of National City: City of National City - City Attorney 1243 National City Blvd. National City, CA 91950-430 619-336-4220 E-mail: cao@nationalcityca.gov B. Contractor/Service Provider Contract Administration: ALPHA PROJECT Karen Pucci, Director of Special Projects 3737 5th Ave Ste 203, San Diego, CA 92103 619-542-1877 karenp(aalphaproi ect.org 2. Required Services A. General Description and Reporting Requirements: The Contractor shall provide services to City and National City related to the Homeless Emergency Assistance Program including, but not limited to: outreach; case management; and, housing navigation. The Required Services required under this Agreement are to be shared between the City and National City equally and consistently with the grant application and award. City and National City 13 ity of Chula Vista Agreement No.: 2021-076 consultant Name: Alpha Project Rev. 10/24/17 Page 13 of 19 65 of 324 Attachment No. 2 shall meet and confer in good faith, as needed, to ensure the required services are shared equally and consistent with the grant application and award. Services shall meet the requirements of the Permanent Local Housing Allocation (PLHA) Program. Reporting Requirements: A year-end and monthly Performance Report spreadsheet will be used to report on the deliverables of the grant. Monthly and year-end quantitate reports of the tasks detailed above will be due 15 days following the end of the previous month and 15 days following the expiration of the Agreement. Narrative summary reports, found in the Performance Report spreadsheet, are due on a bi-annual and annual basis. All reports should be emailed to the City's Contract Administer. B. Detailed Description: Task Description Deliverables Completion Date 1 Outreach Establish supportive relationships with approximately 250 persons to enhance access necessary services and supports that will help them move off the streets 06/30/2022 2 Case Management Case Management of approximately 50 homeless individuals and families in need of housing assistance 06/30/2022 3 Housing Navigation Housing -focused Case Management and Supportive Services for approximately 50 homeless individuals (households) in need of housing assistance and housing stabilization services while they are successfully referred to, matched to, and/or enrolled in permanent housing programs. 06/30/2022 4* Hotel/Motel Voucher Program Provide 50 one-time assistance to fund security deposits and/or short-term rental assistance for bridge or temporary housing stays hotel/motel vouchers rental subsidies. 06/30/2022 5* Tenant Based Rental Assistance Program Provide 30 individuals (or households) with permanent housing rental subsidies 06/30/2022 *Items with the asterisk are for the City of Chula and paid for with ESG and HOME funds. The City of National City will have the Hotel/Motel Voucher Program and Tenant Based Rental Assistance Program administered through separate service providers. 14 ity of Chula Vista Agreement No.: 2021-076 onsultant Name: Alpha Project Rev. 10/24/17 Page 14 of 19 66 of 324 Attachment No. 2 3. Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin August 24, 2021 and end on June 30, 2022 for completion of all Required Services. 4. Compensation: A. Form of Compensation 0 Invoiced or agreed -upon amounts as follows: Agreed -Upon Cost Reimbursements are itemized under Sub: Alpha Project. Reimbursements are retroactive to July 1, 2021. Project Revenue Lead Agency (Chula Vista) Agency Two (National City) Sub: Alpha Project Total of all Agencies RTFH HHAP $ 179,000.00 $ - $ - $ 179,000.00 Other (Emergency Solutions Grant) $ 60,000.00 $ - $ - $ 60,000.00 Other (PLHA) $ - $ 60,000.00 $ - $ 60,000.00 Other (PLEASE DESCRIBE) $ - $ - $ - $ - Total Project Revenue $ 239,000.00 $ 60,000.00 $ - $ 299,000.00 Project Expenses HHAP Lead Agency (Chula Vista) HHAP Agency Two (National City) Sub: Alpha Project Total of all Agencies Personnel $ - $ - $ 203,000.00 $ 203,000.00 Fringe Benefits $ - $ - $ 50,750.00 $ 50,750.00 Operations $ - $ - $ 30,000.00 $ 30,000.00 Transportation $ - $ - $ 15,250.00 $ 15,250.00 Total Project Expenses $ - $ - $ 299,000.00 $ 299,000.00 Total $ - $ - $ 299,000.00 $ 299,000.00 ity of Chula Vista Agreement No.: 2021-076 onsultant Name: Alpha Project Rev. 10/24/17 Page 15 of 19 67 of 324 Attachment No. 2 Notwithstanding the foregoing, the maximum amount to be paid to the Contractor/Service Provider for services performed through Enter End of Contract Date shall not exceed Enter Amount. 5. Special Provisions: El Permitted Sub-Contractor/Service Providers: List Permitted Sub-Contractor/Service Providers or Indicate "None" ❑ Security for Performance: See City Attorney or Indicate "None" if Not Applicable ❑Notwithstanding the completion date set forth in Section 3 above, City has option to extend this Agreement for Insert Number of Terms additional terms, defined as a one-year increment or Enter a Specific Date. if applicable_The City Manager or Director of Finance/Treasurer shall be authorized to exercise the extensions on behalf of the City. If the City exercises an option to extend, each extension shall be on the same terms and conditions contained herein, provided that the amounts specified in Section 4 above may be increased by up to Insert Percentage of Increase or Actual Dollar Amount for each extension. The City shall give written notice to Contractor/Service Provider of the City's election to exercise the extension via the Notice of Exercise of Option to Extend document. Such notice shall be provided at least 30 days prior to the expiration of the term. ❑ Other: Describe Special Provisions (Delete Line If Not Applicable) CI None 15 ity of Chula Vista Agreement No.: 2021-076 onsultant Name: Alpha Project Rev. 10/24/17 Page 16 of 19 68 of 324 Attachment No. 2 EXHIBIT B INSURANCE REQUIREMENTS Contractor/Service Provider shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the following types and minimum amounts of insurance, as indicated by checking the applicable boxes (x). Type of Insurance Minimum Amount Form f General Liability: Including products and completed operations, personal and advertising injury $2,000,000 per occurrence for bodily injury, personal injury (including death), and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this Agreement or the general aggregate limit must be twice the required occurrence limit Additional Insured Endorsement or Blanket AI Endorsement for City and National City* Waiver of Recovery Endorsement Insurance Services Office Form CG 00 01 *Must be primary and must not exclude Products/Completed Operations 0 Automobile Liability $1,000,000 per accident for bodily injury, including death, and property damage Insurance Services Office Form CA 00 01 Code 1-Any Auto Code 8-Hired Code 9-Non Owned 0 Workers' Compensation Employer's Liability $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee Waiver of Recovery Endorsement Other Negotiated Insurance Terms: "NONE" ib ity of Chula Vista Agreement No.: 2021-076 onsultant Name: Alpha Project Rev. 10/24/17 Page 17 of 19 69 of 324 Attachment No. 2 EXHIBIT C CONTRACTOR/SERVICE PROVIDER CONFLICT OF INTEREST DESIGNATION The Political Reform Act2 and the Chula Vista Conflict of Interest Code3 ("Code") require designated state and local government officials, including some Contractor/Service Providers, to make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, Contractor/Service Providers designated to file the Form 700 are also required to comply with certain ethics training requirements.4 ❑ A. Contractor/Service Provider IS a corporation or limited liability company and is therefore EXCLUDEDS from disclosure. ❑ B. Contractor/Service Provider is NOT a corporation or limited liability company and disclosure designation is as follows: APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES (Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of- interest-code.) Name Email Address Applicable Designation Enter Name of Each Individual Enter email address(es) ■ A. Full Disclosure Who Will Be Providing Service Under the Contract — If • B. Limited Disclosure (select one or more of individuals have different the categories under which the Contractor shall disclosure requirements, file): duplicate this row and complete separately for each individual • 1. •2. •3. •4. •5. •6. •7. Justification: 1Z1 C. Excluded from Disclosure 1. Required Filers Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition of "Contractor/Service Provider," pursuant to FPPC Regulation 18700.3, must file a Form 700. 2.Required Filing Deadlines Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement. 3. Filing Designation The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the 2 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704.3 Chula Vista Municipal Code §§2.02.010-2.02.040. 4 Cal. Gov. Code § § 5 3234, et seq. 5 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Ca1.App.4tt' 261; FPPC Reg. 18700.3 (Consultant defined as an "individual" who participates in making a governmental decision; "individual" does not include corporation or limited liability company). rty of Chula Vista Agreement No.: 2021-076 onsultant Name: Alpha Project Rev. 10/24/17 Page 18 of 19 70 of 324 Attachment No. 2 Contractor/Service Provider will provide. Notwithstanding this designation or anything in the Agreement, the Contractor/Service Provider is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2. Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written determination of the Contractor's requirement to comply with the disclosure requirements set forth in the Code. Completed by: Angelica Davis, Sr Management Analyst y ity of Chula Vista Agreement No.: 2021-076 onsultant Name: Alpha Project Rev. 10/24/17 Page 19 of 19 71 of 324 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 Program Supplement Agreement (PSA) No. FO 11 Rev. 1 with the State of California Department of Transportation (Caltrans) for the El Toyon-Las Palmas Bicycle Corridor Project to allow for reimbursement of up to $1,544,000 in eligible project expenditures through the Federal Active Transportation Program (ATP). (Engineering/Public Works) Please scroll down to view the backup material. 72 of 324 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 19, 2021 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute Program Supplement Agreement (PSA) No. F01 1 Rev. 1 with the State of California Department of Transportation (Caltrans) for the El Toyon-Las Palmas Bicycle Corridor Project to allow for reimbursement of up to $1,544,000 in eligible project expenditures through the Federal Active Transportation Program (ATP). PREPARED BY: Jose Lopez, Deputy City Eng inee DEPARTMENT: PHONE: 041 ' APPROVED BY: EXPLANATION: jsee attached. Engi ring/Public Works FINANCIAL STATEMENT: ACCOUNT NO. ATP Grant $1,544,000 Revenue Account:296-06579-3463 Expenditure Account: 9 -409- 99- 9 - 9 - $1,544,000 EI Toyon-Las Palmas Bicycle Corridor Project) There is no local match requirement. Finance APPROVED: APPROVED: MIS ENVIRONMENTAL REVIEW: Caltrans Determination of Categorical Exclusion under 23 CFR 771.117(c): activity (c)(3), approved February 13, 2017, and revalidated February 7, 2021. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: baidopt Resolution authorizing the Mayor to execute PSA No. FC 11 Rev. 1 with Caltrans for the El Toyon-Las Palmas Bicycle Corridor Project to allow for reimbursement of up to $1,544,000 in ATP grant funds. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Explanation wi Exhibits 2. Program Supplement Agreement 3. Resolution! 73 of 324 Explanation On December 10, 2014, the California Department of Transportation (Caltrans) awarded a $375,000 Federal Active Transportation Program (ATP) grant for the El Toyon-Las Palmas Bicycle Corridor Project. There is no local match requirement. The State's $37500O allocation was distributed by Project phases as follows: • Project Approval and Environmental Documents (PA&ED) - $50,000 • Plans, Specifications and Estimate (PS&E) — $250000 • Right -of -Way (ROW) - $75,000 On June 21, 2016, City Council adopted Resolution No. 2016-96 authorizing 1) the Mayor to execute Program Supplement Agreement Number F011 with Caltrans to allow for reimbursement of up to $50,000 in eligible project expenditures, and 2) the appropriation of $50,000 for the project. On December 16, 2016, Caltrans awarded a $1,544,000 Federal ATP grant for the construction phase of the Project. There is no local snatch requirement. On November 8, 2017, Caltrans issued an Authorization to Proceed to the City for the PS&E and RV phase, establishing the date for eligible reimbursement. On February 20, 2018, City Council adopted Resolution No. 2018-24 authorizing 1) the establishment of an appropriation in the amount of $325000 and a corresponding revenue budget for the El Toyon-Las Palmas BicycleCorridor Project. On April 2, 2021, Caltrans issued an Authorization to Proceed to the City for the Construction phase, establishing the date for eligible reimbursement. Similar to the PS&E and RAN phase, there is no local match requirement for the construction phase. The El Toyon-Las Palmas Bicycle Corridor Project includes construction of a new bicycle corridor parallel to the east side of IW505 connecting El Toyon Park and Las Palmas Park (see attached exhibit). Improvements along the bicycle corridor will include Class II and III bike route pavement markings (sharrows) and signage; pedestrian curb ramps for ADA compliance; traffic calming measures such as pedestrian refuge islands, corner bulb -outs and pedestrian actuated flashing crosswalk signs; and storm water treatment infiltration areas. City Council Resolution authorizing the Mayor to execute Program Supplement Agreement No. NO11 Rev. 1 to Administering Agency -State Master Agreement No. 11- 5066F15 is required to allow for reimbursement of eligible project expenditures through the Federal ATP grant. 74 of 324 Class 11 Bike Lane 4th Street, National City Cervantes' Avenue 'if) Class 111 Bike Route 4th Street, National City $: Hospital I Pedestrian Actuated LED, Sign'. & Crosswalk El Toyon Park 0 �% Elementary cshe La c' Nocion b Elementary - y Division St. ATP Cycle 1 Project !Construction 201 6/2017) 4th Street Community Corridor- Existing Crossing t.4th St& T Ave, National City Paradise `alley ",...•' Curb Extensions Irk P i..ci Pedestrian Actuated LED Sign National City Blvd, National Clay lid Plaza/. r a1�tria_ Market• Curb Extensions Plaza Blvd & A Ave, National City 6 e IL Fr i41%, ■ 111� 141.41 Curb Extensions Pedestrian Actuated LED Sign 4th Street Community Corridor - Existing Crossing 4th St & U Ave, National City io,�. 1[ e 7 -A.," 1.01; .+11.14."4' 1111. P1:" *MI. Ili r"- �gr Et -To -you. - Las Palmas Bicycle Boxes DAve&18thSt, Notional Chi Project !mrrovernen' Granger High School Lincoln Acres School Curb Extensions- (Southwest Corner) dLas Palmas Elementary 11 School NMl__ �1' -11 �Y1 o -11 18th St. ATP Cycle 1 Project ,. 4 Construction2016/2017) Las Palmcs Park Map EXISTING BIKE CORRIDOR Class 11 - Bikelane Class 111- Bike Route PROPOSED BIKE CORRIDOR Class II, Ill Regional Bike Boulevard .4400,Connection to Re tonal Bicycle Network ( fission ` lle - Chula CITY Vista Bikeway) CI Future Class 'l II, or III Bikeway* Future Pedestrian Path* — -- Sidewalk Gap REGIONAL I* Future BRT Station - SBBRT (2030) • BUS Stop Future Class I1 or Class 111 Bikeway Note: Bicycle Loop Detectors to be installed at all signalized intersections * Refer to Bicycle Master Plan sting Pedestrian arldge 6i,cyc/,o 8o14sv4ct 0ALIPORNIA NATIONAL Crry PRO -GRAM SUPPLEMENT NO. F011 Rev. 1 to ADMINISTERING AGENCY -STATE AGREEMENT FOR FEDERAL -AID PROJECTS 'TS NO 11-5066F15 Adv Project ID Date: May 5, 2021 11-1 000034 Location: 1 1-SD-0-ITT ; ProjectNumber: ATPL- 0 6(032) E.A. Number: Locodc: 5066 This Program Supplement hereby adopts and incorporates the Administering Agency -State Agreement for Federal Aid which was entered into between the Administering Agency and the State on 0711 1/16 and is subject to all the terms and conditions thereof, This Program Supplement is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No, approved by the Administering Agency on (See copy attached). The Administering Agency further stipulates that as a condition to the payment by the State of any funds derived from sources noted below obligated to this PROJECT, the Administering Agency accepts and \Mil comply with the special covenants or remarks set forth on the following pages_ PROJECT LOCATION: El Toyon - Las Palmas Regional Bicycle Boulevard on Grove Street, Paradise Drive, T Avenue, U Avenue, and Beta Street TYPE OF WORK: Construct bicycle boulevard with sharrmvs, signage, crosswalks, and LENGTH: 1.8(MILES) pe=._lestrian-activated signals Estimated 'Cost 51,919,000.00 Federal Funds Matching Funds I t3E1 S325,000.00 LOCAL OTHER IV13E2 S50.000_00 50,00 Z3E1 1,544 000. SJ_o . CITY OF NATIONAL CITY By Title Date Attest STATE OF CALIFORNIA Department of Transportation By Chief, Office of Project Implementation Division of Local Assistance Date hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance: Accounting Officer Date Program Supplement 11-50 6F15-F 11-R1- 1 TEA S1.919.000.00 Page 1 of 8 76 of 324 11-s D-C-NATO ATPL- O 6(� ) SPECIAL COVENANTS OR REMARKS 1. A. The ADMINISTERING AGENCY will advertise, award and administer this project in accordance with the current published Local Assistance Procedures Manual. E . ADIVI\ISTE7,11NG AGENCYAGENGY agrees that it will only proceed with work authorized for specific phase(s) with an "Authorization to Proceed" and will not proceed with future phase(s) of this project prior to receiving an "Authorization to Proceed" from the STATE for that phase(s) unless no further state or Federal funds are needed for those future pllase(s). r C. Award information shall be submitted by the ADMI II TERi G AGENCY to the District Local Assistance Enc ineer immediately after project contract award and prior to the submittal of the ADM FICI ISTE I AGENCY'S first invoice for the construction contract. Failure to do so will cause a delay in the State processing invoices for the construction phase. Attention is directed to Section 15.7 "Award Package" of the Local Assistance Procedures rvlanual. D. ADMINISTERING IN AGENCY agrees, as a minimum, to subunit invoices at least once every six months commencing after the funds are encumbered for each phase by the execution of this Project Program Supplement Agreement, or by STATE's approval of an applicable Finance Letter. STATE reserves the right to suspend future authorizations/obligations for Federal aid projects, or encumbrances for State funded projects, as well as to suspend invoice payments for any on -going or future project by ADMINISTERING AGENCY it PROJECT costs have not been invoiced by ADMINISTERING IN AGENCY CY for a six-month period. If no costs have been invoiced for a six-month period, ADMINISTERING AGENCY Y agrees to submit for each phase a written explanation of the absence of PROJECT activity along with target billing date and target billing amount. ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING I AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion result in STATE imposing sanctions upon., ADMINISTERING AGENCY in accordance with the current Local Assistance Procedures Manual. E. Administering Agency shall not discriminate on the basis of race, religion, age, disability, color, national origin, or sex in the award and performance of any Federal-= :sisted contract or in the administration of its DBE Program Implementation Agreement. The Administering Agency shall take all necessary and reasonable steps under 49 CFR Part 26 to 1.)n sure nondiscrimination in the award and administration of Federal -assisted contracts. The Administering Agency's DBE Implementation Agreement is incorporated by reference in this Agreement. implementation of the DBE Implementation Agreement, including but not limited to timely reporting of D3E commitments and utilization, is a legal Program su pplernent +11-506 F15-FOI 1- 1- ISTEA Page 2 of 8 77 of 324 1 —SD-D-NATO ATPL-5 66(03 ) SPECIAL COVENANTS OR REMARKS KS obligation and failure to carry out its terns shall be treated as a violation of this Agreement. Upon notification to the /Administering Agency of its failure to carry out its DBE Implementation Agreement, the State may impose sanctions as proviced for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud civil Remedies Act of 1 (31 U.S.C. 3801 et sect F. Any State and Federal funds that may have been encumbered for this project are available for disbursement for limited periods of time. For each fund encumbrance the limited period is from the start of the fiscal year that the specific fund was appropriated within the State Budget Act to the applicable fund Reversion Date shown on the State approved project finance letter. Per Government Code Section 16304, all project funds not liquicated within these periods will revert unless an executed cooperative Work Agreement extending these dates is requested by the ADMiNISTE ING AGENCY and approved by the California Cie Dartrnent of Finance. ADMINISTERING IN , ENC` should ensure that invoices are submitted to the District Local Assistance Engineer at least 75 days prior to the applicable fund Reversion Date to avoid the l-,-pse of applicable funds. Pursuant to a directive from the State controller's Office and the Department of Finance; in order for payment to be made, the last date the District Local Assistance Engineer can forward an invoice for payment to the Department's Local Programs Accounting Office for reimbursable i,vortc for funds that are going to revert at the end of a particular fiscal year is May 15th of the particular fiscal year. Notwithstanding the unliguidated sums of project specific State and Federal funding remaining and available to fund project work, any invoice for reimourserent involving applicable funds that is not received by the Deartment's Local Programs ii_ c.ouriting Office at least 45 days prior to the applicable fixed fund Reversion Date will be paid. These unexpended funds will be irrevocably reverted by the Department's Division of Accounting on the applicable fund Reversion Date. G. As a condition for receiving federal -aid highway funds for PROJECT, the Administering Agency certifies that NO members of the elected board, council, or other key decision makers are on the Federal Government Exclusion List. 'Txclr_rsions can be found at vww. sale .gov. H. This PROJECT is ro rammed to receive Federal funding from the Active Yee Transportation Program (ATP). Funding may be provided under one or more components. A component(s) specific fund allocation is required, in addition to other requirements. before reimbursable work can occur for the component(s) identified. Each allocation will be assigned an effective date and identify the amount of funds allocated per component(s). This PRO l Arv1 SUPDLEMENT has been prepared to allow reimbursement of eligible PROJECT expenditures for the component(s) allocated. The start of reimbursable expenditures is restricted to the later of either 1) the effective date of thc, component specific allocation or the effective date of the feceral obligation of funds. Program Supplement 11-505 F15-FO 11-RI - 1 -TEA Page 3 of 8 78 of 324 11 -SD-O-NATC ATPL-5066(032) SPECIAL COVENANTS OR REMARKS I. STATE and ADMINISTEI\G AGENCY aoree that any additional funds which micht be made available by future Federal obligations will be encumbered on this 'ROJECT by use of i STATE -approved "Authoriyation to Proceed" and Finance Letter. ADMINISTEF-MG AGENCY also agrees that Federal funds available for reimbursement will he limited to the amounts obligated by the Federal Highway Administration and that STATE funds available for reimbursement will be limited to the amounts allocated by the California Transportation Commission and/or STATE. J. Upon ADMINISTERING AGENCY request, the CTC and/or STATE nay approve supplementary allocations, time extensions, and fund transfers between components. Funds transferred between allocated project components retain their original timely use of funds deadlines, but an approved brie extension will revise the timely use of funds criteria tor the component(s) and allocation(s) requested. Approved supplementary allocations, time extensions, and fund transfers between components made after the execution of this PROGRAM SUPPLEMENT will be documented and considered subject to the terms and conditions thereof. DocurnentaLon will consist of a Federal Highway Administration- -r-ipproved "Authorization to Proceed" notification, j STATE approved Allocation Letter, Fund Transfer Letter, Time E-xtension Letter, and Finance Letter, as appropriate. K. This PROJECT will be administered in accorcance with the applicable OTC STIP guidelines and the Active Transportation Program guidelines as adopted or amended, the Local ,Assistance Procedures Manual (LAPM), the Local Assistance Program Guidelines (LAPG), and this PROGRAM SUPPLEMFNT. L. The submittal of invoices for PROJECT costs shall be in accordance with the above - referenced publications and the following. The ADMINISTERING AGENCY shall invoice STATE for environmental & permits, plans specifications & estimate, and right-of-way costs no later than '180 days after the end of last eligible fiscal year of expenditure. .1.-or construction costs, the ADMINISTE7--)%1NG AGENCY has 180 days after project completion or contract acceptance, whichever occurs first, to make the final payment to the contractor and prepare the final Report of Expenditures and final invoice, ano ,su3r-nit to STATE for verification and payment. All obligations of STATE under the terms of this Agreement are subject to the appropriation of resources by the Legislature and the encumorance of funds under this Agreement. Funding and reimbursement are available only upon the passage of the State 3uc,get Act containing these Federal funds. N. This PROJECT is subject to the timely use of funds provisions enacted by the ATP Guidelines, as adopted or amended, and by approved CTC and State procedures as outlined below. Funds allocated for the environmental & permits (E&P), plan specifications & estimate (PS&E), and right-of-way components are available for expenditure until the end of the second fiscal year following the year n which the funds were allocated, Program Supplement 11-5066F15-F011.R1- ISTEA Page 4 of 8 79 of 324 1 1- D-O- T C ATP Lw5 G (O ) SPECIAL COVENANTS OR REMARKS Funds allocated for the construction component are subject to an award dieadline and contract completion deadline, ADMINISTERING AGENCY agrees to award the contract within 6 months of the construction fund allocation and to complete and accept the construction within 6 months of award. o. By executing this PROGRAM UP1": LEIv1EI T, ADMINISTERING AGENCY agrees to comply with all reporting requirements in accordance with the Active Transportation P rocram Guidelines, as adopted or amended. P . This PROJECT has received funds from Active Transportation Program (ATP). The ADMINISTEING AGENCY agrees to administer the project in accordance with the CTC Adopted B'l Accountability and Transparency Guidelines, 2 A. ADMINISTERING AGENCY shall conform to all State statutes, regulations and procedures (inciuding those set forth in the Local Assistance Procedures rvianual and the Local Assistance Program guidelines, hereafter collectively referred to as "LOCAL ASSISTANCE PROCEDURES") relating to the federal -aid program, all Title 23 Code of Federal Regulation (CFR) and 2 CFR Part 200 federal recluirer erlts, and all applicable federal laws, regulations, and policy and procedural or instructional memoranda, unless otherwise specifically waived as designated in the executed project -specific P OG AM SUPPLEMENT. B. Invoices shall be formatted in accordance with LOCAL ASSISTANCE P EDUE, C. ADMINISTERING AGENCY must have at least one copy of supporting backup documentation for costs incurred and claimed for reimbursement by ADMINISTERING AGE\CY. ADMINISTERING AGENCY agrees to submit supporting backup documentation with invoices if requested by State. Acceptable backup documentation includes, but is not limited to, agency's progress payment to the contractors, copies of cancelled check showing amounts made payable to vendors and contractors, and/or a computerized summary of PROJECT costs, D. Indirect Cost Allocation Plan/Indirect Cost Rate Pr000sals (CAP/!CRP), Central Service Cost Allocation Plans and related documentation are to be prepared and provided to STATE, ( altraris Audits & Investigations) for review and approval prior to ADMI I TERI AG AGENCY seeing reimbursement of indirect costs incurred within each fiscal year being claimed for State and federal reimbursement. CA- s/I RPs must be prepared in accordance with the requirements set forth in 2 CFR, Part 200, Chapter 5 of the Local Assistance Procedural Manual, and the ICAP/IP approval procedures established by STATE. E. STATE will withhold the greater of either two (2) percent of the total of all federal funds encumbered for each PROGRAM SUPPLEMENT or $40,00C until ADMINISTERING Program Supplement '1- 0 6F15-F0'11-R1- I TEA Page 5 of 80 of 324 11- D-O ATC ATPL-506+(0) SPECIAL COVENANITS OR REMARKS AGENCY submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT PROJECT. FT. Payments to ADiv1INISTERING AGENCY for PROJECT -related travel and subsistence (per diem) expenses of ADMINISTERING AGENCY forces and its contractors a11c subcontractors claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid rank and file STATE employees under current State Department of Personnel Administration (DPA) rules. If the rates invoiced by ADMINISTERING AGENCY are in excess of DPA rates, ADMINISTERING ING AGENCY is responsible for the cost difference, and any overpayments inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTFR G AGENCY on demand within thirty (30) days of such invoice. G. ADMINISTERING AGENCY agrees to comply with 2 CFR, Part 200, Uniform Adn inistrative Requirements, Cost Principles and Audit Requirement for Federal Awards, H. ADMINISTEING AGENCY .agrees, and will assure that its contractors and subcontractors will be obligated to agree, that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition egulations System, Chapter 1, Part 31, et se ,, shall be used to determine the allowability of incividuai PROJECT cost items. I. Every sub -recipient receiving PROJECT funds under this AGREEMENT shall comply with 2 CFR, Part 200, 23 CFR, 48 CFR Chapter 1, Part 31, Local Assistance Procedures, Pubic Contract Code (PCC) 10300-10334 procurement of goods), FCC 1033 -103 1 (non-A&E services), and other applicable STATE and FEDERAL regulations. J. Any PROJECT costs for which ADMINISTERING AGE.\CY has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, 23 CFR, CFR, Chapter 1, Part 31, and other applicable STATE and FEDERAL AL regulations, are subject to repayment by ADMINISTEFRI\JG AGENCY to STATE, K. STATE reserves the right to conduct technical and financial audits of' PROJECT WORK and records and ADMINISTERING AGENCY agrees, and shall require its contractors and subcontractors to agree, to cooperate with STATE by making all appropriate anc relevant P. OJECT records available for audit and cc yiric as required by the following paragraph: AMINISTEIC AGENCY, ADMINISTERING AGENCY contractors and subcontractors, and STATE shall each maintain and make available for inspection and audit by STATE, the California State Auditor, or any duly authorizec representative of STATE or the United States all books, documents, papers, accountinc records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts and ADMINISTERING AGENCY shall furnish copies thereof if requested. All of the above referenced parties shall make such AGREEMENT, PROGRAM AM SUPPLEMENT, and contract materials available at their respective offices at all reasonable tithes durinc the entire PROJECT period and for three Program Supplement 11-506 F15-FOIL -R1- ISTEA Page 6 of 8 81 of 324 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing a Fiscal Year 2022 budget adjustment to establish appropriations in the amount of $55,000 for Capital Improvement Program (CIP) Fleet Vehicle Equipment and Accessories for the Public Works Streets and Wastewater Division and the National City Police Department. (Engineering/Public Works) Please scroll down to view the backup material. 82 of 324 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 19, 2021 AGENDA ITEM No.: ITEM TITLE: Resolution of the City Council of the City of National City authorizing a Fiscal Year 2022 budget adjustment to establish appropriations in the amount of $55,000 for Capital Improvement Program (CIP) Fleet Vehicle Equipment and Accessories for the Public Works Streets and Wastewater Division and the National City Police Department. PREPARED BY: Tirza Gonzales, Management Analyst II EPARTMENT: Enginee PHONE: 19-336-431 APPROVED BY. EXPLANATION: See Staff Report. ublic Works FINANCIAL STATEMENT: APPROVED: FINANCE ACCOUNT NO. APPROVED: MIS 644-411-000-511-0000 (Automotive Equipment) $55,000 Funding source is fund balance in fund 644 - Vehicle Acquisition. ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION FINAL ADOPTION ri STAFF RECOMMENDATION: Adopt the resolution authorizing a budget adjustment to establish appropriations in the amount of $55,000. BOARD I COMMISSION RECOMMEN[A►TION ATTACHMENTS: 1. Staff report 2. Resolution 83 of 324 Explanation: Through adoption of the FY19, FY 0, and FYI annual budgets, City Council approved the purchase of these vehicles: One (1) National City Police Department(NCPD) Traffic Truck, one 1 Public Works Streets and Wastewater Division Brush Hog, and three (3) NCPD Interceptors. Due to delays and price increases in the automotive industry, additional funding is required to complete the build -outs of the NCDPD vehicles, which includes accessories and interior and exterior warning and emergency lighting. In addition, the Streets Brush Hog was approved for purchase by council through the FY 0 annual budget and was not purchased due to availability issues. The requested appropriations for the brush hog has not increased since council approved its purchase inFY0. Therefore staff requests City Council authorize a Fiscal Year 2022 budget adjustment to establish appropriations in the amount of $55,000 for Capital Improvement Program (CIP)Fleet Vehicle Equipment and Accessories for the Public Works Streets and Wastewater Division and the National City Police Department from the automotive equipment account as follows: Description of Vehicle/Equipment Funds Needed - NCPD Traffic Truck Build -Out $26,000 - Streets and Wastewater Brush Hog $4,000 2 - NCPD Patrol Interceptor Build -Out $15,000 '1 - NCPD K-9 Interceptor Build -Out $10,000 Total $55,000 84 of 324 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing a Fiscal Year 2022 budget adjustment to establish an appropriation in the amount of $198,275.10 and waiving the formal bid process pursuant to National City Municipal Code Section 2.60.260 regarding cooperative purchasing and authorizing the City to piggyback onto Sourcewell (formerly "National Joint Powers Alliance") Contract #060920-NAF with National Auto Fleet Group for the purchase and build -out of one (1) 2023 Ford F-750 Gas Cab Base with Versalift VO260 Crane Works Boom Truck in an amount not -to -exceed $198,275.10. (Engineering/Public Works) Please scroll down to view the backup material. 85 of 324 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 19, 2021 AGENDA ITEM NO,: ITEM TITLE: Resolution of the City Council of the City of National City authorizing a Fiscal Year 2022 budget adjustment to establish an appropriation in the amount of $198275.10 and waiving the formal bid process pursuant to National City Municipal Code Section 2.60.260 regarding cooperative purchasing and authorizing the City to piggyback onto Sourcewell (formerly "National Joint Powers Alliance") Contract #060920-NAF with National Auto Fleet Group for the purchase and build -out of one (1) 2023 Ford F-750 Gas Cab Base with Versalift V0260 Crane Works Boom Truck in an amount not -to -exceed 198,275.10. PRPREPARED BY: Tirza Gonzales, Management Analyst I l EPARTMENT. Engine- !Public Works PHONE: - - APPROVED BY: , EXPLANATION: See staff report. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: FINANCE MIS 644-411-000-511-0000 (Equipment Replacement Reserve) $198T275. 10 Funding source is fund balance in fund 644 -Vehicle Acquisition. ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION • FINAL ADOPTION STAFF RECOMMENDATION: Adopt the resolution authorizing a budget adjustment to establish an appropriation and authorizing the purchase of one (1) 2023 Ford F-750 Gas Cab Base with Versalift V0260 Crane Works Boom Truck in a not -to -exceed amount of $198,275.10. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Staff report 2 Quote 3. Sourcewell Contract 060920- NAF 4. Resolution 86 of 324 Explanation: Based on the need for the Public Works Streets and Wastewater Division to continue to provide the highest level of services required to clean out, avoid spillage, and perform preventative maintenance in the City's sewer infrastructure, and as part of the City Council approved FY20 annual budget, staff requests the purchase of one Parks Aerial Boom Truck. The funding to purchase this vehicle was approved by City Council through adoption of the F` 20 annual budget, however the purchase was postponed and now staff is requesting a FY22 budget adjustment appropriation and subsequent approval for the purchase a one (1) new 2023 Ford F-750 Gas Cab Base with Versalift V0260 Crane Works Aerial Boom Truck. No additional funds are being requested from original Council authorized amount. Consistent with Section 2.60.260 of the National City Municipal Code (NCMC) regarding cooperative purchasing, there is an opportunity to piggyback onto the Sourcewell Contract #060920-NAF with Sourcewell to allow for the purchase from National Auto Fleet. NCMC 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 Sourcewell Contract #060920- NAF (see attached contract) with National Auto Fleet Group was competitively bid through a Request for Proposals (RFP) process, and that the State of California Department of General Services procurement procedures are in substantial compliance with those of National City. Staff also confirmed that the hybrid -electric comparable model was not a cost effective option at this time, even with available incentives. Therefore, staff requests City Council approve a FY22 budget adjustment to establish an appropriation in the amount of $198,275.10 and authorize the Mayor to award the purchase of one (1) 2023 Ford F-750 Gas Cab Base with Versalift V0260 Crane Works Aerial Boom Truck from National Auto Fleet Group in an amount not -to -exceed amount of 198,275.10, consistent with Section 2.60.260 of the National City Municipal Code regarding cooperative purchasing, by piggybacking onto the Sourcewell Contract #060920-NAF. Fund balance is available in the Vehicle Acquisition fund for this purchase. 87 of 324 ti ville siojOi 111, 4** • 1 / /2021 National Auto Fleet Group A Division of Chevrolet of Watsonville 490 Auto Center Drive, Watsonville, CA 95076 (55)289G572.(831)48O-8497 Fax Fleet@NationalAutoFleetGroup.com Quote ID#1728H0 (R1) Mr. Ruben Huerta City of National City 1243 National City Blvd. National City, CA 91950 Dear Ruben Huerta, i National Auto Fleet Group is pleased to quote the following vehicle(s) for your consideration. One (1) New/Unused (2023 Ford F-750 Gas (F7A) Reg Cab Base 126" CA 200" WB with Versalift V0260 Rev via Crane Works) and delivered to your specified location, each for: Chassis and Option Crane Works Quote Tax (8.75%) CA Tire Fee Total Contract Price $ 69,267.28 $ 113,045.00 $ 15,952.32 $ 10.50 19 ,275.10 This vehicle(s) is available under the Sourcewell (Formerly Known as NJPA) Contract 060920-NAF. Please reference this Bid Number on all Purchase Orders. Thank you in advance for your consideration. Should you have any questions, please do not hesitate to call. Sincerely, Inguez Contract Manager HD@NatfonalAutoFleetGroup.com Office (855) 289-6572 Fax (831) 480=8497 • riAck 8/30/2021 '' •R 1_ .4. • s jloit Vehicle Group "Attn: Dan WaltOrs • 066 Miramar Rd. an Diego, 14 ti �� yFhank for gelectingCraneWorks for your crane needs■ As per your request, rrk}}:' EiPpIeased to k r it the following quotation: Quotation ■ '-1 -029R1 • fork i FIFK760) C SS • • we a ih'.'; , •r - • fin. i ••• i*�- it' .. .. .:......: i ...1., :;:11:. ,.: .:r. 7.-..:•' r::...i ;....1:1:" 4- ;.::. ; 1:'-17.1..:e. • F••:. 7; !::.. 1'. _: •yF" • .. 1-5:.•'-rr:...' ' F l: ♦•:. j!oI } �'' "Yl'. is ..�.' 'J''a . • 1':•f;'-1 'i w4!;.: is 3 i, _ :.: •: .- * . L S ri l: Versalift over center, Model V0260 REV mount- 5 ft vertical working ing height, 50 ft side reach, Upper..,..;::, J.'l.i oom with 245 degrees travel, lower boom with 124 degree travel, 360 continuous rotation, both boo '.' }` , .dielectrically tested, one mars bucket-350 lb, capacity with liner & cover, manual tilt to dump water &r : pistol grip control at bucket, hydraulic tool circuit at bucket, A -frame outriggers, outside interlocks, autrig r, motion alarm, electric shift PTO, Versalift Operator, parts manuals Chassis: Minimum Specifications: Fr ightiiner M2-106 regular cab chassis, white ire color, " CAI 250 HP Cummins diesel wi 660 torque, Engine exhaust brake, Allison 2500 RDS automatic transmission, ion, jAir wakes, air darer, Driver controlled rear locking ing cliff, 120,000 psi frame, Front tow hooks, 12,000 lb■ front axle ry • :: ` • .1 . r �} F • 89 of 324 JVV-0821-029R1 Page 2 of springs, 21,000 lb, rear axle with 31,000 Ili.. springs, 11r22.5 tires with traction tires rear, AWFM/Bluetooth/WB, 50 gallon aluminum fuel tank, 25,999 lb. GVWR, PTO hour meter, air conditioning Body: 1 " L x 60" H x 96" W, 24" H swing to side tailgate, Curbside interior ladder Box with pruner shelf and rear door, LED light package with 6-pin trailer plug, 6-point LED amber strobes Tights, under coated, wheel chock holders, tow package with T-60 pintle hook, cab guard with access ladder, outrigger pad holders, white in.. color Tool Box: 4-door tool box, shelving and rope hooks, pass thru bins, locking doors with door seal and an additional exterior steel bar locking system NET SELLING PRiCE:.,. WWNOPMENOWNWIll Each USD Price is Ex works: Shelby, NC CHASSIS NOT INCLUDED REPRESENTATIVE PHOTO SHOWN IN THIS PROPOSAL Sales Tax and DMV Fees - not included FET: Not Included Terms: 15% Non -Refundable Deposit up front wl Balance due upon completion. Quote valid for 30 days, Subject to prior sale. Availability — September 2022, Cral7eWorks, Inc. makes no claims regarding road ability or permit requirements associated with the operation of this equipment. It is the owner's responsibility to verify that the purchased equipment meets local, state, and federal regulations, NOTE: If roadability is of concern, CraneWorks, Inc, will provide a weight study from the manufacturer, but we cannot guarantee its accuracy. Interest charges at the rate of 8_ 25% APR will begin to accrue 017 the tenth day after you are notified that the unit is ready for delivery to you. The charges will continue to accrue until payment is received by CraneWorks. The above referenced '`Delivery Date" is based on current production lead time at the time of this quote. CraneWorks assumes no responsibility for delays in delivery dare to manufacturing and/or production constraints. There are NO WARRANTIES, express or implied, made by Dealer or the manufacturer, on any new equipment described on the previous pages of this Quote/Order, except for the manufacturer's warranty applicable to such new Equipment contained in the separate manufacturer's warranty which will be furnished to Purchaser upon delivery of the new equipment. Such separate manufacturer's warranty shall be expressly IN LIEU OF any other express or implied warranty, condition or guarantee on the new Equipment or any part thereof. Purchaser hereby acknowledges and agrees that Dealer has not in any manner adopted the manufacturer's warranty as a warranty of the Dealer and Purchaser acknowledges, agrees, represents and warrants that Purchaser shall look solely to the manufacturer to perform or satisfy any obligation under the manufacturer's warranty. Used equipment is sold, as is !where is, with 170 Warranty expressed or implied. Details on used equipment are thought to be accurate, but are not guaranteed. For equipment manufactured by CraneWorks, please refer to the CraneWorks warranty Policy. The undersigned authorizes the purchase of the above -mentioned equipment Sic nature: Name: Date: Title: Company: fit : -1 Raising the bar in lifting equipment 90 of 324 J -o 1 -0 9 1 Page 3 of 3 Again, thank you for selecting Cr neVVor s. Please call soon to discuss this proposal further. Sincerely, Jon Williams Craneworks Southwest, Inc. jwilliams(dcrane-works. com Cell: 760-668-0130 Raising the bar in lifting equipment Prepared by: Jesse Cooper 08/30/2021 Watsonville Ford' 550 Auto Center Drive Watsonville California I 9507.W2.8 2022 F-750 Gas Regular Cab Base (F7A) Price Level: 215 I Quote ID: 1728HD Selected Equip & Specs Dimensions • Exterior length: 314.0" • Exterior width: 96.7" * Wheelbase: 200.0" • Rear track: 72.6" • Front legroom: 41.4}" Front hiproom: 67.6" Po ertrain • 350hp 7.3L OHV 16 valve V-8 engine with variable valve control, SMPI • federal • Rear -wheel drive • Fuel Economy Highway: N/A • Transmission PTO provision • Right mounted horizontal muffler Suspension/Handling Front non -independent leaf spring suspension Hydraulic power -assist re -circulating ball Steering • 11,0R22.5 AS front and rear tires • Rubber auxiliary rear springs Body Exterior • 2 doors • Black door mirrors * Trailer harness • Hood mounted grille 2 front tow hook(s) Convenience • Manual air conditioning * Power front windows * Driver and passenger 1-touch down • Manual tilt steering wheel • Wireless phone connectivity • Front cupholders * Cab to axle: 126.0" • Exterior height: 92.9" • Front track: 83.8" • Rear tire outside width: 96.0" • Front headroom: 40.7" • Front shoulder room: 68,0" Recommended fuel : regular unleaded • TorqShift-G 6 speed automatic transmission with overdrive • Fuel Economy Cty: N/A • 50,0 gal. rectangular Left front fuel tank • Standard rear differential • Right mounted horizontal tailpipe • Rear rigid axle leaf spring suspension • Front and rear 22.5 x 8.5 wheels Dual rear wheels * Driver and passenger power remote heated, manual folding door mirrors • Side steps • Clearcoat paint • Front and rear 22.5 x 8.25 white steel wheels with 10 wheel studs • Cruise control with steering wheel controls * Driver and passenger 1-touch up * Power door locks • Manual telescopic steering wheel * 1 lst row LCD monitor • Passenger visor mirror Prices and content availability as shown are subject to change and should be treated as estimates only_ Actual base vehicle, package and option pricing n-nay vary from this estimate because of special Kcal pricing. availability or pricing adjustments not reflected in the dealer's computer system. See salesperson for the most current information. 92 of 324 Prepared by: Jesse Cooper 0 / 0/2021 Watsonville Ford 550 Auto Center Drive Watsonville California 1950763728 2022 F-750 Gas Regular Cab Base (F7A) Price Level: 215 I Quote ID: 1728HD Selected Equip & Specs (cont'd) * Back-up alarm • Dual electric horn • Automatic gearshift steering column lever • Upfitter switches Seats and Trim * Seating capacity of • , Fixed passenger seat * Bucket driver seat, two person bench passenger seat High back seats • Driver seat with 4 way direction control, passenger seat with 2 way direction control * Fixed headrests Entertainment Features • AM/FM stereo radio • Steering wheel mounted radio controls • Streaming audio * Driver and passenger door bins • Fixed driver seat * Driver centre front armrest * Driver seat folding back, * Driver seat air suspension, • Manual fore/aft seats • Auxiliary audio input • 2 speakers • Fixed antenna Lighting, Visibility and Instrumentation • Halogen aero-composite headlights • Delay -off headlights Auto on/off headlights • Variable intermittent front windshield wipers • Speed sensitive wipers • Light tinted windows • Front reading lights • Tachometer • Oil pressure gauge • Oil temperature gauge • Trip computer • Trip odometer RNDM Safety and Security • 4-wheel ABS brakes • Hydraulic disc brakes * Power door locks Dimensions General Weights *Curb 9,872 lbs. Rear GAWR 21000lbs. WR 37000 lbs. Front Weights • Hill hold control • ABS traction control • With stolen vehicle tracking system Front GAWR GVWR 12000 lbs. 33000 lbs. Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle, package and option pricing may vary from this estimate because of special local pricing, availability or pricing adjustments not reflected in the dealer's computer system. See salesperson for the most current information, 2 93 of 324 Prepared by: Jesse Cooper 08/ 01 0 1 Watsonville Ford 550 Auto Center Drive Watsonville California J 9507 3728 2022 F-750 Gas Regular Cab Base (F7A) Price Level: 215 I Quote ID: 1728HD Selected Equip & Specs (cont'd) * Front curb weight 5,951 lbs. * Front spring rating 12,000 lbs. Rear Weights * Rear curb weight * Rear spring rating Trailering Type -*Harness 'Fuel Tank type Left front Fuel tank capacity Front Frame Height loaded Rear Frame * Height waded Powertrain Engine Type Block material Head material Injection Orientation Valves per cylinder Variable valve control Engine Power Output Alternator Type Battery * Cold cranking amps Step Transmission Electronic control Overdrive Type 3,922 lbs. lbs. 23,000 Yes 50.01 gal. 35 37 ,1 Iron Aluminum Sequential MPI Longitudinal 2 Yes 350 HP @ 3,900 RPM Transmission Gear Ratios HD 1,800 Yes Yes Yes Automatic * Front axle capacity * Front tire/wheel capacity Rear axle capacity * Rear tire/wheel capacity Height unloaded Height unloaded Cylinders Ignition Liters Recommended fuel Valvetrain Torque Amps Location *Type Lock -up Speed 12,O00. lbs. 13,220 lbs. 21,000 lbs. 24,020 lbs. 3 3 I V-8 Spark 7.3L Regular un eaded HV 468 ft.-lb @ 3,900 RPM 210 Forward right 'Dual Yes 0 Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle, package and option pricing may vary from this estimate because of special Focal pricing, availability or pricing adjustments not reflected in the dealer's computer system. See salesperson for the most current information. 94 of 324 Prepared by: Jesse Cooper 08/30/ 0 1 Watsonville Ford l 550 Auto Center Drive Watsonville California l 95076a728. 2022 F-750 Gas Regular Cab Base (F7A) Price Level: 215 I Quote VD: 1728HD Selected Equip & Specs (cont'd) 1st 3.974 2nd 2.318 3rd 1.516 4th 1.149 5th 0.858 6th 0.674 Reverse Gear ratios 3.128 Transmission Torque Converter Stall ratio 2.00 Transmission Extras Driver selectable mode Tow/Haul Mode oil cooler Regular duty * PTO provision Yes Drive Type Type Rear -wheel Drive Feature Traction control ABS Drive Axle *Ratio 6.5 Exh a ust Material Non stainless steel System type Sinole Emissions GARB Federal C riv a bi l ity Brakes ABS4-wheel ABSchannels 4 Type Hydraulic disc Vented discs Front and rear Brake Assistance Hill hold control Suspension Control Ride Front Suspension Independence Front Spring Type Front Shocks Type Yes Regular Non -independent Tapered leaf Regular Type Leaf Grade Regular Prices and content availability as shown are subject to change and should be treated as estimates only Actual base vehicle, package and option pricing may vary from this estimate because of special Focal pricing, availability or pricing adjustments not reflected in the dealer's computer system. See salesperson for the most current information. 4 95 of 324 Prepared by: Jesse Cooper 08130/2021 Watsonville Ford l 550 Auto Center Drive Watsonville California 1950763728 2022 F-750 Gas Regular Cab Base (F7A) Price Level: 215 I Quote ID: 1728HD Selected Equip & Specs (cont'd) Rear Suspension Independence Rigid axe Type Rear Spring Type Multi -leaf Grade Auxiliary Rubber Steering Activation Hydraulic power -assist Type Re -circulating ball Steering Specs #ofwheels 2 Exterior Front Wheels Diameter Leaf Regular 22.5" Width 8.2" Rear Wheels Diameter 22. " Width c`` .5" Dual Yes Front Tires Aspect 82 Diameter ' 22.5" Sidewalls BSW Tread AS Width 11.0" *LT load rating H RPM Rear Tires Aspect Sidewalls Width * RPM Wheels Front track * Turning radius (to curb) * 'wheelbase 497 82 Diameter 22,57 BSW Tread AS 11.0" * LT load rating H 493 83.8" Rear track 27' *Turning radius (to bumper) 200.0" Rear tire outside width Body Features Front splash guards Yes Side steps Yes Body Doors Door count 2 72." 29' 96,0" Body material Composite/galvanized steel Front tow hook(s Prices and content availability as shorn are subject to change and should be treated as estimates only. Actual base vehicle. package and option pricing may vary from this estimate because of special Focal pricing, availability or pricing adjustments not reflected in the dealer's computer system. See salesperson for the most current information. 96 of 324 Prepared by: Jesse Cooper 08/30/2021 Watsonville Ford 1550 Auto Center Drive Watsonville California 1 507637 8 2022F-750 Gas Regular Cab Base (F7A) Price Level: 215 I Quote ID: 172 H D Selected Equip & Specs (cont'd) Exterior Dimensions * Length 314.0" Body width 96.7" Body height 2." * Cab to axle 126.0" * Axle to end of frame 75.0" * Frame section modulus .l c•u.in. * Frame yield strength (psi) 120000.0 * Frame rail depth 10.4" * Frame rail width .7" Frame rail thickness OA" * Max RBM (in.-Ibs.) 2,526,000.0 Frame rail section . Front bumper to Front axle 39.0" *Nominal ominal B (in.-Ibs.) 2,41 , 00.0 Seating Passenger Capacity * Capacity Driver Seat Type * Back type Way direction control Driver Headrest * Type Bucket Back Fl`ding High *suspension - it 4 Fore/aft Manual Fixed Passenger Seat * Type Two person bench *Back type High Way direction control Fore/aft Manual Passenger Headrest *Type Fixed Front Armrest Driver Front Seat Trim Material Convenience AC And Heat Type Air conditioning Audio Sys to m Auxiliary audio input Radio grade Yes *Centre Yes Vinyl Back material Carpet Manual Yes Radio AM/FM stereo Regular Seek -scan Yes Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle, package and option pricing may vary from this estimate because of special local pricing, availability or pricing adjustments not reflected its the dealer's computer system. See salesperson for the most current information, 97 of 324 Prepared by: Jesse Cooper 08/30/2021 Watsonville Ford 15 0 Auto Center Drive Watsonville California 9507637'28 2 2022 F-750 Gas Regular Cab Base (F7A) Price Level: 215 I Quote ID: 1728HD Selected Equip & Specs (cont'd) Audio Speakers Speaker type Regular Speakers 2 Audio Controls Steering wheel controls Yes Streaming audio -Yes Audio Antenna Type Fixed LCD Monitors * 1st row 1 *Primary monitor size (inches) 8 Cruise Control Cruise control With steering wheel controls ConvenienceFeatures Driver foot rest Yes 12V DC power outlet * Wireless phone connectivity Yes * 120V AC power outlet * Back-up alarm Yes Horn Dual electric * Upfitter switches Yes Door Lock Activation * Type Power *Auto locking Instrumentation Type Appearance - - Analog Instrumentation Gauges Tachometer Yes Gil pressure Engine temperature Yes Gil temperature Transmission fluid temp Yes Engine hour meter Instrumentation Warnings Oil pressure Yes Battery Lights on Yes Key Low fuel Yes Door ajar Service interval Yes Brake fluid Transmission fluid temp Yes Instrumentation Displays Clock In -radio display instrumentation Feature Trip computer Shift indicator Yes Trip odometer RNDM Yes Yes Yes Yes Yes Yes Yes Yers Yes Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle, package and option pricing may vary from this estimate because of special local pricing, availability or pricing adjustments not reflected in the dealer's computer system. See salesperson for the most current information. 98 of 324 Prepared by: Jesse Cooper 08/ 01 0 1 Watsonville Ford 550 Auto Center Drive Vvatsonvill 950763728 2022 F-750 Gas Regular Cab Base (F7A) Price Level: 215 I Quote ID: 1728HD Selected Equip & Specs (cont'd) Steering Wheel Type Material Urethane Telescoping Manual Front Side Windows *Window 1st row activation Power Tilting Win do w Features * 1-touch down Driver and passenger er * 1-touch up Tinted Light F re n t Windshield .Wiper Rear Windshield Window Variable intermittent Fixed Automatic Gearshift Location Steering column lever Interior Passenger Visor Mirror - Yes Full Full Headliner Coverage Floor Trim Coverage Trim Feature Gear shifter material Urethane Lighting Dome Tight type Variable IP lighting Storage * Driver door bin Glove box Instrument panel Legroom. Front Headroom Delay Yes Yes Yes Bin 41, 4" Speed sensitive wipers Material Covering Front reading Front Beverage holder(s) *Passenger door bin Dashboard Manual Driver and passenger Yes Cloth Vinyl/rubber Yes Yes Yes Yes Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle, package and option pricing may vary from this estimate because of special local pricing, availability or pricing adjustments not reflected in the dealer's computer system, See salesperson for the most current information, 99 of 324 Prepared by: Jesse Cooper 08/30/2021 Watsonville Ford 1550 Auto Center Drive Watsonville California 95076372'8 ' 2022 F-750 Gas Regular Cab Base (F7A) Price Level: 215 I Quote ID: 1728HD Selected Equip & Specs (cont'd) Front 40." Hip Room Front 67.6" Shoulder Room Front 8.01! Prices andcontent availability as shown are subject to change and should be treated as estimates only, Actual base vehicle, package and option pricing may vary from this estimate because of special local pricing, availability or pricing adjustments not reflected in the dealer's computer system. See salesperson for the most current information, 9 100 of 324 Prepared by: Jesse Cooper 08/30/2021 Watsonville Ford j 550 Auto Center Drive Watsonville California 1 507 :3728 2022 F-750 Gas Regular Cab Base (F7A) Price Level: 215 I Quote ID: 1728HD As Configured Vehicle Code Description ASP Base Vehicle F7A Base Vehicle Price (F7A) Engines 99N 7.3L 2V DEVCT NA PFl V8 Gas - 350 HP © 3900 rpm Torque: 468 ft.lbs. @a 3900 rpm. 425 50-State Emissions 917 Speed Limit - 70mph Transmissions 44 P 41B Front Wheels & Tires 643 Ford TorqShift HD 6-Speed Automatic - Double Overdrive, less PTO Provision, less Park Pawl Transmission Power Take -Off Provision w/LiveDrive Capability and Tow/Haul $62,1 00.00 Wheels, Front 22.5x3.25 White Powder Coated Steel, 10-Hole (285.75MM BC) hub pi/aced, flanged nut, metric amount, 8,25 DC rims; with steel hubs. T2A Tires, Front Two 11R22.5H Goodyear Fuel Max RSA (497 rev/mile) Rear Wheels & Tires 663 Wheels, Rear 22.5x8.25 White Powder Coated Steel, 10-Hole (285. 75MM BC) hub piloted, flanged nut, metric mount. 8.25 DC rims; with steel hobs, R2H Tires, Rear Four 11 R22.5H Goodyear Fuel Max RTD (493 rev/mile) Brakes STD N/C N/C STD $295.0 STD 45.00 STD 1 75.00 • Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle, package and option pricing may vary from this estimate because of special local pricing, availability or pricing adjustments not reflected in the dealer's computer system. See salesperson for the most current information. 10 101 of 324 Prepared by: Jesse Cooper 08/30/2021 soiryil I e Ford nter Drive .WEItsonville California 1 9 51i776.?7 2022 F-750 Gas Recular Cab Base (HA Price Level: 215 I Quote ID: 1728HD As Configured Vehicle (cont'd) Code Description MSRP 67H 152 Front Axle and Suspension Hydraulic Brake System - Bosch HydroMax IN/Traction Control Full power with automatic adjustment, 4-channel ABS antilock brake system. Includes 12"k 3" (Bosch) DSSA type rear axle mounted parking brake, Orscheln lever control, right of driver and hand operated park brake lever. Trailer Connection Socket - 7-Way, Wired for Terri Signals Combined with Stop tviounted at rear of frame, for combined trailer stop, tail, turn, marker light circuits includes electric trailer brake accommodation package with cab connections for Inounting customer installed electric brake unit. STD 43P 12,000 Ib. Cap. \on -Driving - Dana E-12021 I-3eam Type 61D Rear Axle and Suspension Taper -Leaf Springs, Parabolic - 12,000 lb. Cap 2-leaf. 62" x 3. /5". Also includes, standard duty, dual, double acting shock absorbers. $100.00 525.00 305.00 475 21,000 Ib. Single Reduction - Open - STD Dana / Spicer 21060S NOTE: When specifying an axle ratio, check performance guidelines for startability and gradeability, 68IR Multi -Leaf Springs - 23,000 lb. Cap 11-leaf. Includes 2,000 lb auxilialy springs for load stabilization. X6D 6.50 Axle Ratio Wheelbase 200WB 200" Wheelbase/126" CA 75" AF/314" DAL Frame 539 Single Channel - Straight 'C' 20.11 SM, 120,000 PSI $230.00 N/C $490.00 $1,075.00 2,413,200 RBM, Heat treated alloy steel,- 10.375" x 3. 705" x 0.438" (263.5mm x 94.1mm k." 11.1mm). 76X Bumper, Front - Delete - Also Deletes Mounting Brackets -$135,00 Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle, package and option pricing may vary from this estimate because of special local pricing, availability or pricing adjustments not reflected in the dealer's computer system. See saleiperson for the most current information. 11 102 of 324 Prepared by: JesseCooper 08/30/ 0 1 Watsonville Ford 1550 Auto Center Drive Watsoriviliii- California J 9507 37 8 2022 F-750 Gas Regular Cab Base (F7A) Price Level: 215 I Quote ID: 178HD As Configured Vehicle (cont'd) Code Description MSRP Exhaust 91H Fuel Tanks Single, Horizontal Muffler - Frame Mounted Right Side Back of Cab w/Catalytic Converter Downward facing, outlet tip. 65A Fuel Tank - LH 50 Gallon - Steel 12 Electrical f Alternator 1 Battery STDALT 63B 12 Gal. Single Tank Fuel Fill. Mandatory Charge Applied, Based On Tank Selection Extra Heavy Duty Alternator - 12-Volt, 210 Amp Mitsubishi Extra heavy cloty 12 Volt_ Battery Two 900 CCA, 1800 Total, Includes Steel Battery Box 1 Volt, Motorcraft 17M Back -Up Alarm - Electric, 102 dBA 962 Daytime Running Lamps (Not Configurable) Seats 88L Cab Interior 30/70 Air Ride Driver (Integral Air Pump) & Fixed 2-Passenger Bench Vinyl 600A Preferred Equipment Package 600A STD STD- 0.0 Included $60.00 440,00 Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle, package and option pricing may vary from this estimate because of special local pricing, availability or pricing adjustments not reflected in the dealer's computer system. See salesperson for the most current information. 12 103 of 324 Prepared by: Jesse Cooper 08130/2021 Forci 550 Auto Center Drive Watsonville California 950763728 2022 F-750 Gas Regular Cab Base (F7A) Price Level: 215 I Quote ID: 1728HD As Configured Vehicle (cont'd) Code Description MSRP 92K 90P 59F includes: - Wheel Seals, Front - Oil lubricated, SKF ScotSeal PlusXL Seals - Wheel Seals, Rear - Oil lubricated, SKF ScotSeal PlusXL Seals - Extra Heavy Duty Alternator - 12-Volt, 210 Amp Mitsubishi Extra heavy duty 12 Volt. - Painted Grille - Plastic - Lights - Roof Marker/Clearance - Amber Lenses, 5 Lights - Tow Hooks, Front (2) - Frame -Mounted, Painted Black - Floor Covering - Black Vinyl - Intelli-gent Oil Life Monitor - Steering Column - Tilt / Telescoping - Steering Wheel Black PVC w/lntegral Cruise Control Switches, includes Audio Controls - Body Builder Wiring - At Back of Cab, Combined Includes sealed connectors for 2 ground circuits, with combined left/stop, combined rightistop, stop lamps, park lamps, back up lamps. Also includes 2 additional pass through wires to cab. - Enhanced Cluster wil-ligh-Level 8- Inch Display Electronic speedometer (MPH/KPH) includes oil pressure, coolant temperature, fuel gauge,,t• tachometer and indicator lights. Also included is enhanced 3-button Message Center with - - odometer, trip odometer, distance to empty for fuel, average fuel economy, hour meter, and warning messages. Transmission temperature in message center. 55P 110 AlC Outlet - in Lower Center 588 Cab Exterior 54R Ship-Thru Power Equipment Group - (Included in (90A) Appearance Group) Includes power front side windows, power door locks and door trim panel. Four Body Builder Switches - $125.00 Mounted in Center Instrument Panel With connector access located in engine compartment. Amperages vary by switch: 10, 15, 25, 25. $100.00 Finish Panel Radio: AM/FM Stereo w/2 Speakers, USB input, Clock Display and Bluetooth Mirrors, Dual - Heated & Motorized Rectangular, XL2020 - 102" Width Integral spot mirror, sail type, solid black finish. 21A Pre -Delivery Inspection Selection requires that you also choose either (314) or (31F) or (31V) to have the fnspection performed. Required with any final Ship -To that is not a dealer. $235.00 $/470.00 STD $275.00 31F Ship-Thru NFS National Fleet Services N1C N/C Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle, package and option prickle' may vary from this estimate because of special local pricing, availability or pricing adjustments riot reflected in the dealer's computer system. See salesperson for the most current information. 13 104 of 324 Prepared by: Jesse Cooper 0 / 0/2021 VVatsonvalle Forci 1 550 Auto 13eriter Drive Watsonville Califoirnia I 950763728 2022 F-750 Gas Regular Cab Base (F7A) Price Level: 215 I Quote ID: 1728HD As Configured Vehicle (conVd) Code Description MSRP MAY be selected w/o adding (21A). For MODIFICATIONS ONLY, Dealer must make arrangements directly with NFS (please use CVT Resources for add. Info). Miscellaneous PAINT Paint Type - Environmentally Friendly, "3 - Wet system" Interior Color E i1 Exterior Color Gray YZ 01 Oxford White STD N/C N/C SUBTOTAL Destination Charge $67, 045.00 $2,095.O0 TOTAL $69,140.00 Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle. package and option pricing may vary from this estimate because of special local pricing, availability or pricing adjustments not reflected in the dealer's computer system. See salesperson for the most current information. 14 105 of 324 Prepared by: Jesse Cooper 08/30/2021 Watsonville Ford 1 550 Auto Center Drive Watsonville California 507372 a 2022 F-750 Gas Regular Cab Base (F7A) Price Level: 215 I Quote ID: 1728HD Pricing Summary - Single Vehicle MSRP Vehicle Pricing $695140.00 Total $69,140.00 Customer Signature Acceptance Date Prices and content availability as shown are subject to change and should be treated as estimates only. Actual base vehicle, package and option pricing may vary from this estimate because of special local pricing. availability or pricing adjustments not reflected in the dealer's computer system. See salesperson for the most current information. 15 106 of 324 Docu ign Envelope ID: E231A4AC-5C75-4068-A87D-BB09EC3BEB57 0 - AF Sourcewell ;011 Solicitation n Number: RFP #060920 CONTRACT This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and 72 Hour LLC dba: National Auto Fleet Group, 490 Auto Center Drive, Watsonville, CA 95076 (Vendor). Sourcewell is a State of Minnesota local government agency and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 12.3A.21) that offers cooperative procurement solutions to government entities. Participation is open to federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada. Vendor desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell's cooperative purchasing contracts (Participating Entities). 1. TERM of CONTRACT A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below. B. EXPIRATION DATE AND EXTENSION. This Contract expires August 1, 2024, unless it is cancelled sooner pursuant to Article 24. This Contract may be extended up to one additional one-year period upon request of Sourcewell and with written agreement by Vendor. C. SURVIVAL OF TERMS. Articles 11 through 16 survive the expiration or cancellation of this Contract. 2. EQUIPMENT, PRODUCTS, OR SERVICES A. EQUIPMENT, PRODUCTS, OR SERVICES. Vendor will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above. Vendor's Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract. All Equipment and Products provided under this Contract must be new/current model. Vendor may offer close-out or refurbished Equipment or Products if they are clearly indicated in Rev. 2/2020 1 107 of 324 Do uSign Envelope 1D: E231 A4AC- C75-4068-AB7D-BBO9E 3BEB 7 0 09 - A F Vendor's product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity's site. This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed. B. WARRANTY. Vendor warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship. In addition, Vendor warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Vendor's dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer's warranty that is effective past the expiration of the Vendor's warranty will be passed on to the Participating Entity. C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution, Vendor will make available to Sourcewell a means to validate or authenticate Vendor's authorized dealers, distributors, and/or reseliers relative to the Equipment, Products, and Services related to this Contract. This list may be updated from time -to -time and is incorporated into this Contract by reference. It is the Vendor's responsibility to ensure Sourcewell receives the most current version of this Iist.. 3. PRICING Alt Equipment, Products, or Services under this Contract will be priced as stated in Vendor's Proposal. When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity's total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entity's requested delivery location. Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase. A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Vendor must permit the Equipment and Products to be returned within a reasonable time at no cost to Sourcewell or its Participating Entities. Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. Rev. 2/2020 108 of 324 Dow Sign Envelope ID: E231A4AC- C75-4068-A87D-BBO E 3BEB57 0 0 20-NAF Vendor must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition. Sourcewell may declare the Vendor in breach of this Contract if the Vendor intentionally delivers substandard or inferior Equipment or Products. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Vendor as soon as possible and the Vendor will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity. B. SALES TAX. Each Participating Entity is responsible for supplying the Vendor with valid tax - exemption certification(s). When ordering, a Participating Entity must indicate if it is a tax- exempt entity. C. HOT LIST PRICING. At any time during this Contract, Vendor may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in theContract. When Vendor determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line -item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below. Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities. 4. PRODUCT AND PRICING CHANGE REQUESTS Vendor may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Contract Administrator. This form is available from the assigned Sourcewell Contract Administrator. At a minimum, the request must: • Identify the applicable Sourcewell contract number; • Clearly specify the requested change; • Provide sufficient detail to justify the requested change; • Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and • Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged. Rev. 2/2020 109 of 324 DoouSign Envelope ID: E 31 A4A - C75-4O68-A87D-BBO9E 3DEB57 060920-NAF A fully executed Sourcewell Price and Product Request Form will be become an amendment to this Contract and be incorporated by reference. 5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS ►. PARTICIPATION. Sourcewell's cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities. The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity's authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Vendor understands that a Participating Entity's use of this Contract is at the Participating Entity's sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source. Vendor is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential members to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract. B. PUBLIC FACILITIES. Vendor's employees may be required to perform work at government - owned facilities, including schools. Vendor's employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws. 6. PARTICIPATING G ENTITY USE AND PURCHASING A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Vendor that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Vendor. Typically, a Participating Entity will issue an order directly to Vendor. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell contract number. All Participating Entity orders under this Contract must be issued prior to expiration of this Contract; however, Vendor performance, Participating Entity payment, and any applicable warranty periods or other Vendor or Participating Entity obligations may extend beyond the terra of this Contract. Vendor's acceptable forms of payment are included in Attachment A. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity. Rev. 2/2020 Zo 4 110 of 324 DocuSign Envelope ID: E231 A4AC-5C75-4068-A87D-BBO EC3BEB57 060920-NAF B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING AC DENDUM. Additional terms and conditions to a purchase order may be negotiated between a Participating Entity and Vendor, such as job or industry -specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entitles may require the use of a Participating Addendum; the terms of which will be worked out directly between the Participating Entity and the Vendor. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract. C. PERFORMANCE BOND. If requested by a Participating Entity, Vendor will provide a performance bond that meets the requirements set forth in the Participating Entity's order. D. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements (such as e-commerce specifications, specialized delivery requirements, or other specifications and requirements) not addressed in this Contract, the Participating Entity and the Vendor may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement. E. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Vendor in the event of any of the following events: 1., The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the goods to be purchased; 2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity's requirements; or 3. Vendor commits any material breach of this Contract or the additional terms agreed to between the Vendor and a Participating Entity. F. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity's order will be determined by the Participating Entity making the purchase. 7. CUSTOMER SERVICE A. PRIMARY ACCOUNT REPRESENTATIVE. Vendor will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for: • Maintenance and management of this Contract; • Timely response to all Sourcewell and Participating Entity inquiries; and • Business reviews to Sourcewell and Participating Entities, if applicable. Rev. 2/2020 5 111 of 324 DomSign Envelope ID: E21A4AC-5C75-4068-A87D-BBO9EC3BEB57 0 2 -N A ' B. BUSINESS REVIEWS. Vendor must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, supply issues, customer issues, and any other necessary information. 8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Vendor must provide a contract sales activity report (Report) to the Sourcewell Contract Administrator assigned to this Contract. A Report must be provided regardless of the number or amount of sales during that quarter i.e., if there are no sales, Vendor must submit a report indicating no sales were made). The Report must contain the following fields: • Customer Name (e.g., City of Staples Highway Department); • Customer Physical Street Address; • Customer City; • Customer State/Province; • Customer Zip Code; • Customer Contact Narne; • Customer Contact Email Address; • Customer Contact Telephone Number; • Sourcewell Assigned Entity/Participating Entity Number; • Item Purchased Description; • Item Purchased Price; • Sourcewell Administrative Fee Applied; and • Date Purchase was invoiced/sale was recognized as revenue by Vendor. B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Vendor will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Vendor may not charge Participating Entities more than the contracted price to offset the Administrative Fee. The Vendor will submit a check payable to Sourcewell for the administrative fee amount of $400 multiplied by the total number of trucks purchased by Participating Entities from Vendor under this Contract, and $200 multiplied by the number of trucks purchased by Participating Entities from Vendor's partner dealer Alan Jay Automotive in Florida, during each calendar quarter. Payments should note the Sourcewell-assigned contract number in the memo and must be mailed to the address above "Attn: Accounts Receivable." Payments must be received no later than 45 calendar days after the end of each calendar quarter. Rev. 2/2020 112 of 324 DocuSign. Envelope ID: E231 A4AC-5 75i-40 8-A87D-BBO9EC3BEB57 0 0 - AF Vendor agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract. In the event the Vendor is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Vendor in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract's expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date. 9. AUTHORIZED REPRESENTATIVE Sourcewell's Authorized Representative is its Chief Procurement Officer. Vendor's Authorized Representative is the person named in the Vendor's Proposal. If Vendor's Authorized Representative changes at any time during this Contract, Vendor must promptly notify Sourcewell in writing. 10. ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. ASSIGNMENT. Neither the Vendor nor Sourcewell may assign or transfer any rights or obligations under this Contract without the prior consent of the parties and a fully executed assignment agreement. Such consent will not be unreasonably withheld. B. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been fully executed by the parties. C. WAIVER. If either party fails to enforce any provision of this Contract, that failure does not waive the provision or the right to enforce it. D. CONTRACT COMPLETE. This Contract contains all negotiations and agreements between Sourcewell and Vendor. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. E. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master -servant, or principal -agent. 11. LIABILITY Vendor roust indemnify, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys' fees, arising out of the performance of this Contract by the Vendor or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused Rev. 2/2020 7 113 of 324 Doou ign Envelope ID: E231A4AC-5C75-4068-A87D-BB99EC3BEB57 0 0 0- AF by some defect in the Equipment, Products, or Services under this Contract to the extent the Equipment, Product, or Service has been used according to its specifications. 12. AUDITS Sourcewell reserves the right to review the books, records, documents, and accounting procedures and practices of the Vendor relevant to this Contract for a minimum of 6 years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract. 13. GOVERNMENT DATA PRACTICES Vendor and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Vendor under this Contract. If the Vendor receives a request to release the data referred to in this article, the Vendor must immediately notify Sourcewell and Sourcewell will assist with how the Vendor should respond to the request. 14. INDEMNIFICATION As applicable, Vendor agrees to indemnify and hold harmless Sourcewell and its Participating Entities against any and all suits, claims, judgments, and costs instituted or recovered against Sourcewell or Participating Entities by any person on account of the use of any Equipment or Products by Sourcewell or its Participating Entities supplied by Vendor in violation of applicable patent or copyright laws. 15. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. INTELLECTUAL PROPERTY 1. Grant of License. During the term of this Contract: a. Sourcewell grants to Vendor a royalty -free, worldwide, non-exclusive right and license to use theTrademark(s) provided to Vendor by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell's relationship with Vendor. b. Vendor grants to Sourcewell a royalty -free, worldwide, non-exclusive right and license to use Vendor's Trademarks in advertising and promotional materials for the purpose of marketing Vendor's relationship with Sourcewell. 2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to its and their respective distributors, marketing representatives, and agents (collectively "Permitted Sublicensees") in advertising and Rev. 2/2020 8 114 of 324 DocuSign Envelope ID: E231A A-5+C75-4068-A87D-BB69E 3BEB57 00 20- AF promotional materials for the purpose of marketing the Parties' relationship to Participating Entities. Any sublicense granted will be subject to the terns and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees. 3. Use; Quality Control. a. Sourcewell must not alter Vendor's Trademarks from the form provided by Vendor and must comply withVendor's removal requests as to specific uses of its trademarks or logos. b. Vendor must not alter Sourcewell's Trademarks from the form provided by Sourcewell and must comply with Sourcewell's removal requests as to specific uses of its trademarks or logos. c. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party's Trademarks only in good faith and in a dignified manner consistent with such party's use of the Trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated. 4. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party's name or logo (excepting Sourcewell's pre-printed catalog of vendors which may be used until the next printing). Vendor must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell's written directions. B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Vendor individually or jointty with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract. C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Materials should be sent to the Sourcewell Contract Administrator assigned to this Contract. D. ENDORSEMENT. The Vendor rust not claim that Sourcewell endorses its Equipment, Products, or Services. 16. GOVERNING LAW, JURISDICTION; AND VENUE Minnesota law governs this Contract. Venue for all legal proceedings out of this Contract, or its breach, must be in the appropriate state court in Todd County or federal court in Fergus Falls, Minnesota. Rev 2/2020 115 of 324 DccuSign Envelope ID: E231A4A - 75-4068-A87D-BBO9EC BEB57 060920-NAF 17. FORCE MAJEURE Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party's reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default. 1. SEVERABILITY If any provision of this Contract is found to be illegal, unenforceable, or void then both Sourcewell and Vendor will be relieved of all obligations arising under such provisions. If the remainder of this Contract is capable of performance, it will not be affected by such declaration or finding and must be fully performed. 19. PERFORMANCE, DEFAULT, AND REMEDIES A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows: 1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Vendor will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties. 2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Vendor may escalate the resolution of the issue to a higher level of management. The Vendor will have 30 calendar days to cure an outstanding issue. 3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Vendor must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Vendor fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, any► additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed will be borne by the Vendor. B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default: 1. Nonperformance of contractual requirements, or 2. A material breach of any term or condition of this Contract. Written notice of default and a reasonable opportunity to cure must be issued by the party claiming default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non -defaulting party may: Rev, 2/2020 10 116 of 324 DocuSign Envelope ID: E 31A4AC-5 75-4068-A87D-BPO E 3BEB57 0 0' - F • Exercise any remedy provided by law or equity, or • Terminate the Contract or any portion thereof, including any orders issued against the Contract. 20. INURANCE A. REQUIREMENTS. At its own expense, Vendor must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an "AM BEST" rating of A- or better, with coverage and limits of insurance not less than the following: 1. Workers' Compensation and Employer's Liability. Workers' Compensation: As required by any applicable law or regulation. Employer's Liability Insurance: must be provided in amounts not Tess than listed below: Minimum limits: $500,000 each accident for bodily injury by accident $500,000 policy limit for bodily injury by disease $500,000 each employee for bodily injury by disease 2. Commercial General Liability Insurance. Vendor will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office ("ISO") Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products -completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract. Minimum Limits: $1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury $2OOO,OOO aggregate for Products -Completed operations $2,000,000 general aggregate 3. Commercial Automobile Liability Insurance. During the term of this Contract, Vendor will maintain insurance covering all owned, hired, and non -owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent. Minimum Limits: $1,000,000 each accident, combined single limit Rev. / 0 Q 11 117 of 324 DomuSign Envelope ID: E231A4AC- C?5-4063-A87D-BB39EC3BE6 7 060920-NAF 4. Umbrella Insurance. During the term of this Contract, Vendor will maintain umbrella coverage over Workers' Compensation, Commercial General Liability, and Commercial Automobile. Minimum Limits: $2,000000 S. Professional/Technical) Errors and Omissions, and/or Miscellaneous Professional Liability. During the term of this Contract, Vendor will maintain coverage for all claims the Vendor may become legally obligated to pay resulting from any actual or alleged negligent act, error, or omission related to Vendor's professional services required under this Contract. Minimum Limits: $2,000,000 per claim or event $2,000,000 — annual aggregate 6. Network Security and Privacy Liability Insurance. During the term of this Contract, Vendor will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Vendor's security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data -- including but not limited to, confidential or private information, transmission of a computer virus, or denial of service. Minimum limits: $2,000,000 per occurrence $2,000,000 annual aggregate Failure of Vendor to maintain the required insurance will constitute a material breach entitling Sourceweli to immediately terminate this Contract for default, B. CERTIFICATES OF IISURA►ICE. Prior to commencing under this Contract, Vendor must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Contract Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf. All policies must include there will be no cancellation, suspension, non -renewal, or reduction of coverage without 30 days' prior written notice to the Vendor. Upon request, Vendor must provide to Sourcewell copies of applicable policies and endorsements, within 10 days of a request. Failure to request certificates of insurance by Sourcewell, or failure of Vendor to provide certificates of insurance, in no way limits or relieves Vendor of its duties and responsibilities in this Contract. Rev. 2/2020 12 118 of 324 DocuSign Envelope ID: E 31 A4AC- C75-4068-A87D-BBo9EC3BEB5 r 060920-NAF C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Vendor agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Vendor's commercial general liability insurance policy with respect to liability arising out of activities, "operations," or "work" performed by or on behalf of Vendor, and products and completed operations of Vendor. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds. D. WAIVER OF SUBROGATION. Vendor waives and must require (by endorsement or otherwise) ail its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Vendor or its subcontractors. The waiver must apply to all deductibles and/or self -insured retentions applicable to the required or any other insurance maintained by the Vendor or its subcontractors. Where permitted by law, Vendor must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors. E. UMBRELLA/EXCESS LIABILITY. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies). F. SELF -INSURED RETENTIONS. Any self -insured retention in excess of $10,000 is subject to Sourcewell's approval. 21. COMPLIANCE A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold. B. LICENSES. Vendor must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Vendor conducts with Sourcewell and Participating Entities. 22. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION ATION Vendor certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Vendor declares bankruptcy, Vendor must immediately notify Sourcewell in writing. Vendor certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs Rev. 2/2020 13 119 of 324 DocuSign Envelope ID: E2 1A4A+ -5 75-4068-AB7D-BBO E 3BEB57 060920-NAF operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Vendor certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Vendor further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time. 23. PROVISIONS FOR NON -UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER UNITED STATES FEDERAL AWARDS OR OTHER AWARDS Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Participating Entities may also require additional requirements based on specific funding specifications. Within this Article, all references to "federal" should be interpreted to mean the United States federal government. The following list only applies when a Participating Entity accesses Vendor's Equipment, Products, or Services with United States federal funds. A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of "federally assisted construction contract" in 41 C.F.R. § 60- 1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, "Equal Employment Opportunity" (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity, and implementing regulations at 41 C.F.R. § 60, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor." The equal opportunity clause is incorporated herein by reference. B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by non- federal entities must include a provision for compliance with the Davis -Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, "Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction"). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland "Anti -Kickback" Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, "Contractors and Subcontractors on Public Building or Public Work Rev. 2/2020 14 120 of 324 Docu ign Envelope ID; E 31A4A - 75-4068-A87D-BBO E 3BEB57 0 20- 1. F Financed in Whole or in Part by Loans or Grants from the United States"). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Vendor must be in compliance with all applicable Davis -Bacon Act provisions. C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5). Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision i hereby incorporated by reference into this Contract. Vendor certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Vendor must comply with applicable requirements as referenced above. D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of "funding agreement" under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that "funding agreement," the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, "Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements," and any implementing regulations issued by the awarding agency. Vendor certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Vendor must comply with applicable requirements as referenced above. E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA). Vendor certifies that during the terra of this Contract will comply with applicable requirements as referenced above. Rev. 2/2020 15 121 of 324 DocwSign Envelope ID. E 31A4A-5C75-4968-A87D-BB99E 3BEB57 060920-NAF F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 1 549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 1 549 (3 C.F.R. § 1986 Cornp., p. 189) and 1 689 (3 C.F.R. § 1989 Comp., p. 235), "Debarment and Suspension." SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Vendor certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency. O. BYRD ANTI -LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Vendors must file any required certifications. Vendors must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Vendors must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Vendors must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti -Lobbying Amendment (31 U.S.C. § 1352). H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Vendor must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Vendor further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending natters are closed. I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Vendor must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act. J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Vendor must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition. K. ACCESS TO RECORDS (2 C.F.R. § 0 .33 ). Vendor agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and records of Vendor that are directly pertinent to Vendor's discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right Rev. 2/2020 16 122 of 324 DowS gn Envelope ID: E231A4A -5 75-40 5-A87D-BBO9EC3BEB57 060920-NAF also includes timely and reasonable access to Vendor's personnel for the purpose of interview and discussion relating to such documents. L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded 10,000 procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. 24. CANCELLATION Sourcewell or Vendor may cancel this Contract at any time, with or without cause, upon 60 days' written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Vendor's Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation. Sourcewell 72 Hour LLC dba: National Auto Fleet Group — DocuSigned by: DocuSigned by: By.�f ` Jeremy Schwartz Title: Director of Operations & Procurement/CPO Date: 8/3/2020 l 5 : 08 PM CDT Approved: (--DocuSigned by: ByCbtAtt Cogwat -—7E42B8F817A&4CC . Chad Coauette Title: Executive Director/CEO Date: 8/3/2020 l 5 : 13 PM CDT Bj0e, COOrtX y. FAGS B573OG1 E467- Jesse Cooper Title: Fleet Manager Date: 8/3/200 I 2:06 PM CDT Rev. 2/2020 17 123 of 324 DocuSign Envelope ID: E231A4AC-5C75-4068-A87D-8B99EC3BEB57 RFP 060920 - Class 4-8 Chassis with Related Equipment, Accessories, and Services Vendor Details Company Name: 72 HOUR LLC Does your company conduct business under any other name? If National Auto Fleet Group yes, please state: 490 Auto Center Drive Address: Watsonville, CA 95076 Contact: Jesse Cooper Email: Jcoopernationalautofleetgroup.com Phone 951-440-0585 Fax: 831-840-8497 HST#: 263297677 Submission Details Created On: Friday April 17, 2020 10:02:43 Submitted On: Tuesday June 09, 2020 00:25:02 Submitted By: JesseCooper Email: Jcooper anatianalautofleetgroup.com Transaction #: 42f514a4-eaaa-45d 1-a264-1 de559e88b95 Submitter's IP Address: 76.81.241.2 Bid Number: RFP 060920 Vendor Name: 72 HOUR LLC 124 of 324 Docu ign Envelope ID: E 31A4A -5 75-4068-A87D-BBO9E 3BEB57 Specifications Table 1: Proposer Identity & Authorized Representatives General instructions (applies to all Tables) Sourcewell prefers a brief but thorough response to each question. Please do not merely attach additional documents to your response without also providing a substantive response. Do not leave answers blank: mark "NA" if the question does not apply to you (preferably with an explanation). Line item Question Response 1 Proposer Legal Name (and applicable dlbla, if any): 72 Hour LLC, DBA: National Auto Fleet Group 2 Proposer Address: 490 Auto Center Drive Watsonville CA, 95076 Proposer website address: Proposer's Authorized Representative (name, title, address, email address & phone) (The representative must have authority to sign the "Proposer's Assurance of Compliance" on behalf of the Proposer and, in the event of award, will be expected to execute the resulting contract): www.NationalAutoFleetGroup.com Jesse Cooper 1-855-289-6572 Fleet Manager 490 Auto Center Drive Watsonville, CA 95076 Jcooper@nationalautofleetgroup.com Proposer's primary contact for this proposal (name, title, address, email address & phone): Jesse Cooper 1-855-289-6572 Fleet Manager 490 Auto Center Drive Watsonville, CA 95076 Jcooper@nationalautofleetgroup.com 1, Proposer's other contacts for this proposal, if any (name, title, address, email address & phone): Clarke Cooper 1-855-289-6572 Fleet Manager 490 Auto Center Drive Watsonville, CA 95076 C larkecooperwondriescon} Table 2: Company Information and Financial Strength Line item Question Response Provide a brief history of your company, including your company's core values, business philosophy, and industry longevity related to the requested equipment, products or services. NAFG, was originally established in 1987 when we went by Wondries Fleet Group located in Southern California. Starting with a single automobile dealership, my father Clarke Cooper has grown our network to over 35 dealerships both in and outside of California. We have always hired and promoted from within our organization to help promote our culture. Most of our Fleet Division Managers who started with us back in 1987 are still with us today. We have evolved over the decades to adapt to the improving industry technology to the advancement of once gas -powered vehicles to now fuel cell powered. Even in today's fast changing marketplace, our core values have never changed. Our core values are: Always do what's right for the customer, you take care of them and they will take care of you. Our Business philosophy has always been the 4 RIGHT'S to every client: Deliver the RIGHT vehicle, at the RIGHT time, to the RIGHT place and the RIGHT price. Our longevity can best be displayed with a few statements. \Ne are and have always been family owned and operated. We have deep family roots in the automobile business with future generations in the infant stages today. We plan on leading our industry for decades to come. Bid Number: RFP 060920 Vendor Name: 72 HOUR LLC 125 of 324 DocuSign Envelope ID: E231A4AC-5C75-4068-A87D-BBO9EC3BEB57 8 10 11 12 What are your company's expectations in the event of an award? Demonstrate your financial strength and stability with meaningful data. This could Include such items as financial statements. SEC filings, credit and bond ratings, letters of credit, and detailed reference letters. Upload supporting documents (as applicable) in the document upload section of your response. What is your US market share for the solutions that you are proposing? "That is your Canadian market share for the solutions that you are proposing? Has your business ever petitioned for bankruptcy protection? If so, explain in detail. if awarded another Sourcewell Contract, this would be our 4th and like our prior 3 contracts we will grow yet again by compounding our knowledge and customer service experience we have gained from serving members from across our great nation yet again to new heights. We want to grow our divisions with more staff and particularly grow our Partner Program which is detailed in the Zip file in the additional Documents upload. Our Partner program allows members to suggest and even recommend there local upfitters to NAFG to partner on any turn key quote. We see a tremendous value in giving the ability to the member to supply the upfitter of there choice to NAFG in order to provide a 100% turn key solution. We have uploaded the following under the section: Financial Strength_ Bank commitment letters that we have been utilizing with our current Sourcewell Contracts which extend a direct line of credit up to 43,000,000 and more if needed to serve rnernber needs. Market Success with copies of recent current contracts of over S 140,000,000 worth of products and goods from a direct result of our current Sourcewell Contracts which are: 1. City of San Diego, CA S 72,000,000 contract under our Sourcewell Contract 120716-NAF. 2. City of San Diego, CA S 55,400,000 contract under our Sourcewell Contract 081716-NAF. 3. Government Fleet Article Highlighting our transaction with the City of San Diego, CA procuring over 100 Police vehicles through NAFG Sourcewell Contract 120716-NAF. 4. City of Los Angeles World Airports, CA Contract for 24,003,500 under Sourcewell Contract 120716-NAF for the procurement of 400 vehicles. 5. City of Los Angeles Harbor, CA Contract Extension to 4,500,000 contract under Sourcewell Contract 120716-NAF, 6. City of Los Angeles Harbor, CA Contract for 8 1.500.000 under our Sourcewell Contract 120716-NAF. 7. City of Los Angeles Harbor, CA Renewal for another 1,500,000 under Sourcewell Contract Class 6, 7 and 8 Contract 081716-NAF, 8. City of Costa Mesa, CA Contract for 1,023,220 under our Sourcewell Contract 120716-NAF. 9. Blanket Contract with the State of Maryland, MD off our current Class 6, 7 and 8 Chassis Contract 081716-NAF. 10, Blanket Contract with the State of Maryland, MD off our Current Sourcewell Contract 120716-NAF, Commitment Letter's for 5 years' worth of continued unwariiy support from large national upfit suppliers such as The Knapheide Manufacturing Company with it's distributor base nation wide down to regional support from Phenix Truck Body in Southern CA as an example. All of which currently help support our current members clients with current and past orders they have had with NAFG. We have Member Recommendations attached showing not only does NAFG practice with we preach, but Member's can stand behind NAFG as well, VVe have Upfitter Recommendations as well to show not only NAFG is a good partner for members but also a good partner to partner with. Not only does taking care of the member just involve the dealer, it also must and will always include the upfitter along with the entire supply chain. All of which goes towards serving the members. We have provided documentation of the State of Maryland adopting our current Class 6, 7 and 8 contract demonstrating our ability to go after and show States there's a better way of doing business. Lastly, we have shown our Growth we have had with Sourcewell from 2012 when we were first awarded. VVe hope this only shows the trajectory of where we are expecting to take our future expectations. Our US Market Share for the products and Model's we are offering is roughly 70- 80% as the 11 manufacturers represent,. NAFG market share is roughly estimated 2% of Government Fleet Sales. NAFG current Canadian market share is zero, however plans are in place to aggressively go after the Canadian market. No. Bid Number: RFP 060920 Vendor Name: 72 HOUR LLC 126 of 324 DocuSign Envelope ID: E231A4AC,-5C75--4O68-A87IJ-BB09EC3BEB57 13 How is your organization best described: is it a manufacturer, a distributorldealer!reseller, or a service provider? Answer whichever question (either a) or b) just below) best applies to your organization. a) If your company is best described as a distributoridealerlreseller (or similar entity), provide your written authorization to act as a distributor/dealer/reseller for the manufacturer of the products proposed in this RFP. If applicable, is your dealer network independent or company owned? b) if your company is best •described as a manufacturer or service provider, describe your relationship with your sales and service force and with your dealer network in delivering the products and services proposed in this RFP. Are these individuals your employees, or the employees of a third party? NAFG is best described as "A" a Distributer/Dealer!Reseller/De ler Partner for the 11 Manufacturers contained in our response: Ford Motor Company, RAM, Chevrolet, Hino, Isuzu, International, Volvo, Freightliner, Western Star, Mack, l enworth and Peterbilt. All orders are placed with franchised dealerships and ultimately titled to the memrber. All our appropriate certificates can be viewed in the'Related Certification" section for either our dealerships direct or our partner dealers you will find all appropriate certificates. We do not sell used equipment to the members. As well you will find NAFG has named our dealer partners as additional insured under our policy. 14 If applicable, provide a detailed explanation outlining the licenses and certifications that are both required to be held, and actually held, by your organization (including third parties and subcontractors that you use) in pursuit of the business contemplated by this RFP. A Dealer License and Franchise agreement issued by the Manufacture, Department of Motor Vehicles License along with a Reseller's permit are the most pertinent licenses to hold. In the attachment in section "Related Certification" you will find the following either as a solely owned entity or by our partner dealer we jointly hold: IRS Approved FET Number CA State Seller's Permit 101-135239 CA State Seller's Permit 245364864-0000 1 Department of Motor Vehicle, Vehicle Dealer/ License Number 97772 Department of Motor Vehicle, Vehicle Dealer License Number 97771 Department of Motor Vehicle, Vehicle Dealer License Number 43609 Bureau of Automotive repair Registration # ARD00296319 123120 CA State Seller's Permit 232781952-00001 City of Watsonville Business License Number 1792 City of Watsonville Business License Number 4358 Fictitious Business Names from Santa Cruz County for National Auto Fleet Group FBN: 2017-0000138 California General Resale Certificate Dun & Bradstreet Number: 023680653 Government of The District of Columbia Certificate Government of the District of Columbia Tax Registration # 7815888160711 City of Los Angeles Tax Registration Government of The District of Columbia CLEAN HANDS CERTIFICATION San Diego Freightliner Seller's Permit Commonwealth of Virginia State Corporation Commission Certificate State of Maryland Good Standing Certificate Kansas Department of Revenue for Kansas City Peterbilt New Jersey Department of Treasury Registration Certificate New Jersey Business Registration Notice of Compliance of the Canton City Codified Ordinance Employee Information Report for the State of New Jersey State of Maryland New Sales and Use tax License CA State Seller's Permit 98-037902 00006 South Carolina Department of Motor Vehicles License Number 36133 State of South Carolina Retail License Commonwealth of Kentucky Vehicle Dealer License 1583 20 100 State of West Virginia Dealer License Commonwealth of Kentucky Vehicle Dealer License 15Bi 20 036 State of Tennessee Vehicle Dealer License 15 Provide all "Suspension or Debarment" information that has applied to your organization during the past ten years. Does not apply. Bid lumber: RFP 060920 Vendor Name: 72 HOUR LLC 127 of 324 DocuSign Envelope ID: E231A4AC-5C75-4O68-A87D-BBO9E 3BEB57 Table 3: Industry Recognition & Marketplace Success Line Item 16 17 18 19 20 Question Describe any relevant industry awards or recognition that your company has received in the past five years What percentage of your sales are to the governmental sector in the past three years What percentage of your sales are to the education sector in the past three years List any state, provincial, or cooperative purchasing contracts that you hold. What is the annual sales volume for each of these contracts over the past three years? List any GSA contracts or Standing Offers and Supply Arrangements (SOSA) that you hold. What is the annual sales volume for each of these contracts over the past three years? Table 4: Reference/Testimonials Response The most prodigious award NAFG has received in the past 5 years would be: Top Placement in Ford Motor Company as a leading dealership in Government Sales followed by our high ranking recognition from General Motors for our Chevrolet brand. Both NAFG has received 4 of the past 5 years. As an organization most of our sales are focused on retail, however in our division in Fleet, we have sold to about 90% Government accounts. As a percentage of our sales in the Government, about 20% would be considered to Universities and Unified School Districts. We hold the State of California contract with volumes from 200 to 500 units a year during the past three years. Second, our Sourcewell Contract's 091219, 081716 and 120716 which over the past three years has sold a volume of 390,030,176.99 of Combined Quarterly Sales. NAFG focus is on our Sourcewell Contracts we do not hold any other besides the State of California. Line Item 21. Supply reference information from three customers who are eligible to be Sourcewell participating entities_. k Entity Name w Contact Name * Phone Number* T Port of Los Angeles, CA Mr. Dave Comer 310-732-3794 County of Venture, CA Mr, Jorge Bonilla 805 672-2044 City of Austin, TX. Mr. Matt Sager 512-978-2637 Table 5: Top Five Government or Education customers Line Item 22. Provide a list of your top five government, education, or non-profit customers (entity name is optional), including entity type, the state or province the entity is located in, scope of the project(s), size of transaction(s), and dollar volumes from the past three years. EntityName EntityType yp State ! Province Scopeof Work w Size of Transactions * Dollar Volume Past Three Years * { k City of Austin Government Texas - TX Purchaser 10-15 Vehicles at a time Over 1 M Los Angeles Department of Water and Power Government California - CA Purchaser Over 100 Trucks Over 3M Port of Los Angeles Government California - CA Purchaser Over 75 Trucks Over 2M City of San Diego Government California - CA Purchaser Over 400 Trucks Over 10M Ann Arundel County Government Maryland - MD Purchaser Over 20 Trucks Over 1 M Table 6: Ability to Sell and Deliver Service Describe your company's capability to meet the needs of Sourcewell participating entities across the US and Canada, as applicable. Your response should address in detail at least the following areas: locations of your network of sales and service providers, the number of workers (full-time equivalents) involved in each sector, whether these workers are your direct employees (or employees of a third party), and any overlap between the sales and service functions. Line Item Question Response * Bid Number: RFP 060920 Vendor Name: 72 HOUR LLC 128 of 324 DocuSign Envelope ID: E231 A4AC-5C75-4068-A87D-BB0gEC3BEB5 r 23 Sales force. Vile have a Direct and Indirect sales force. Our direct sales force are our employees and partner dealers, Combined our estimated employee count exceeds 100 personals dedicated to supporting our dealerships and NAFG Fleet Division. Our indirect sales force which would be our partner suppliers and upfitlers would be well above 100. VVith both direct and indirect sales force staff NAFG has been proven to maintain and service the current demand of the members. As the number of members grow that we can help, the more staff we would eagerly employee to help meet demand. 24 Dealer network or other distribution methods. Our franchise network which covers our proposed 11 manufacturers are second to none. With industry forefront of the combined experience of manufactures like The Ford Motor Company, General Motors, Freightliner, J 1lAK, Peterbilt and Kenworth to name a few have established a national presence were all members can receive service and warranty repairs on there respective products. The distribution of an Automobile or Cab Chassis has always been an ongoing challenge for all manufactures new and old. However we in America have the best Automobile Supply Chain Network in the world and as a franchised dealer of brands, we too get take full advantage of the network to ship and supply our member clients nationwide. 25 Service force. VVith over thousands of service locations representing our 11 manufacturers a member client can find with ease a service station or warranty repair facility near by. Of course Alaska and Hawaii do have a larger distance between franchises a member would utilize for warranty repair or service. Bid Number: RFP 060920 `ender Name: 72 HOUR LLC 129 of 324 Docu ign Envelope ID: E231A4AC-5C75-4008-A87D--BB09EC3BEB57 26 2- Describe in detail the process and procedure of your customer service program, if applicable. Include your response -time capabilities and commitments, as well as any incentives that help your providers meet your stated service goals or promises. Identify your ability and willingness to provide your products and services to Sourcewell participating entities in the United States, To best illustrate our Customer Service programs, I ask that you use as a reference our ZIP file under Additional Documents and within in a ZIP file named "Member Walk Through", Start with and view in order which I will explain in order here: How A I'ember Can Get Quotes Online Demo: A member can obtain most quotes by visiting our website www.l ationalAutoFleetGroup.corn where a simple one step form is needed for registration. This is to protect the price information from nonmembers. Once a member registers they will receive an automated welcome email with a demo video on how to use our site. Members will gain access to there very own dashboard which will house all there quotes in one safe secure login. Member's can select which brand they are looking for and model year. Our site shows all the categories the brand offers such as: Cars, Vans, SUV's Trucks and Chassis Cabs. Members will then be able to drill down for the right selection by picking from the filter menu of what cab there looking for (Regular, Extended or Crew) to 2 wheel or 4 wheel drive down to the bed length there looking for. All factory options are then presented for the member to select from, this will show all current factory order -able options, taking the guess work out for the member. Once a member selects a desired build, they will see there Sourcewell Price report showing the M RP, there contract price, the saving in real dollars and as a percentage. In the PDF example you can see a saving of $ 9,175.96 of 22.345% to the member showing a significant savings. Members then can chose to add extra's to there order like extra keys' service manuals, sales tax and even request an upfit to be added to there quote. Lastly they will be given a complete turn key quote package to print which will include there customized Quote ID, Description and Specifications of what they built. How Members and Upfrtters can Partner with NAFG: Our dedicated website www.NAFPartner,com was built to accommodate the member who would like a certain upfitter to upfit there vehicles. It was also built for upfitters to have a place to go where they can find information on how to partner with NAFG to better serve there local members. Example of A Member with Upfit Quote: This is an example of how we use our Cab Chassis and combine them with an upfit to provide a turnkey solution for the member in a simple to follow format. ETA System for Members VValk Through: This is where members can easily come to our website, the same website they built there chassis on and track there order like they would a UPS package. We have a very simple display on our homepage 'Track your order where members can enter one of the following: Purchase Order Number, Quote ID, Upfit Quote ID or vin to easily see there in the process there particular order is in. Courtesy Confirmation Explained: After NAFG receives an order from a Member, we always like to send the member a Courtesy Confirmation. This is were the member will double check some particulars on there order like, Color, Quantity, Upfit and to ensure all Specification's are all correct before order placement. We also like to ask for title information at this point so we can help process the paperwork at delivery promptly. Factory Order Cut Off Notices: Here is were we like to highlight were members can access any upcoming factory order cut off dates. We walk the member through the process step by step to ensure the member knows the upcoming factory order cut off date, we even print this information (if known at the time) right on the cover page of there quotes. Validation Walk Through Example: To demonstrate a price validation, we show what a member would see when they build a truck on our site. At check out the member would see the Total Configured MRP of 35,730.00, A Sourcewell Price of 27,331.68, Total Saving of $ 8,398.32 or 23.505% for a 2020 F-250 followed by the pricing page which shows the Minimum Discount of at least 18.50%. As you see we provided an additional 5% discount on top of the 18.50% contract discount. This would be the case in this example. We have provided a list of our top 1,000 memberlclients demonstrating our ability to service all members nationwide. Located in the Marketing Place ZIP file as "NAFG Top 1,000 Member Clients" PDF. 8 Identify your ability and willingness to provide your products and services to Sourcewell participating entities in Canada. Our ability and know how to carry our business model into Canada has never been as strong as it is today, we believe a simple US Dollar to Canadian exchange rate coupled with our pricing structure will allow NAFG to finally be in a position to serve members in Canada by partnering with Canadian based dealer groups. 29 Identify any geographic areas of the United States or Canada that you will NOT be fully serving through the proposed contract. NAFG will service 100 % of the United States of America and attempt to build the same model to service all of Canada, We do not know yet what regions we will encounter difficulty and how long the solution will take, but we will strive to service all of Canada, Bid Number: RFP 060920 Vendor Name: 72 HOUR LLC 130 of 324 DocuSign Envelope ID: E231A4AC--5C75-4068-A87D-BBO9E 3BEB57 30 31 Identify any Sourcewell participating entity sectors (i.e., government, education, not -for - profit) that you will NOT be fully serving through the proposed contract. Explain in detail. For example, does your company have only a regional presence, or do other cooperative purchasing contracts limit your ability to promote another contract? Define any specific_ contract requirements or restrictions that would apply to our participating entities in Hawaii and Alaska and in US Territories. Table 7: Marketing Plan We will service all Sourcewell Members through our 24 hours a day 365-year website except Non Profits. Non -Profits would be subject to a different pricing program and would need to be handled on a case by case basis, Non -Profits mostly do not qualify for the discount governments qualify for. The only requirement for members in Alaska. Hawaii and US Territories would be logistical shipping constraints the region would hold. Forexample, we currently provide members in Alaska chassis cabs with upfits and the member allows us to add the extra shipping cost, port cost and driver cost to load and unload there vehicles from port to port. This would be required if needed to be added to any quote in these regions. Line Item Question Response Chid Number: RFP 060920 Vendor Name: 72 HOUR LL 131 of 324 DocuSign Envelope ID: E231A4AC-5C75-4O68-A 7D-BBO9EC3BEB57 32 Describe your marketing strategy for promoting this contract opportunity. Upload representative samples of your marketing materials (if applicable) in the document upload section of your response. In addition to the Sample Marketing Flyers and Marketing Departn-ient Charts uploaded in the link "Marketing Plan/Samples" National Auto Fleet Group facilities a variety of marketing strategies to promote our products and services to reach out to government entities. Our company encompasses mainly outbound marketing strategies to promote the Sourewell Government Vehicle Contract. Email Marketing: Part of our outbound strategy includes paid online marketing techniques such as the use of email campaign blasts. This process includes creation of multiple campaign flyers used to convey key messages to our targeted audience. Flyer messages consist of the types of vehicle contracts, brands sold, special discounts offered to first time buyers, holiday themed flyers, vehicles offered, new website features and many more. This method encourages potential customers to our website to explore our products and services. Campaigner email marketing service acts not only to send out emails but as a CRM database system to monitor, send and track effectiveness of emaiis. Our marketing tear'n works continuously to gather emaiis from government entities though out the United States to compile a database of clientele. Event Marketing: This strategy has proven to be a successful avenue to generate leads and create lasting relationships. National Auto Fleet Group attends several trades shows per year to engage customers in person along with upsell opportunities. Meeting prospects face-to-face forms a lasting impression not available through other methods of selling. Trade shows attended include GFX, IAPPO, NIGP, ACT, CAPPO, CASBO throughout the United States. Relationship Marketing: This is utilized once a client is directed though our website though online methods. Once a potential client registers and becomes a member on our website, our sales team will personally reach out via phone or email to provide further assistance. The role of the sales team is to continue to support and empower clients and educate them on products and services offered. The team will go the extra mile for subscribers, prospects, and customers even after a sales transaction is completed. Our sales team has worked tirelessly to focus on providing outstanding customer support to create powerful rapport with our clients. By going above and beyond, we have enhanced existing relationships and executed customer loyalty with repeat businesses. They strive to deviate from the "Gar Salesperson'° mentality which is 100% sales driven to a more product and customer service approach by instilling a sense of confidence to our clients. Their constant goal is to regularly assist clients and address any needs during the entire sales process. Striving to focus on solution selling vs. product selling develops into a mutually beneficial agreement for customers and the business. Referral/Word of mouth: This strategy ties into our outstanding relationship marketing to clients. The positive quality of service experienced by customers has led to an increased number of sales through referrals. Our goal is to provide exemplary customer service throughout entire selling process to encourage repeat business and referrals. Coming late summer of 2020, National Auto Fleet Group will be launching a NAFG Partner Website to increase the growth of our business. The website ww .nafgpartner.com is expected to launch late summer/early fall of 2020. The site encourages body upfitting companies throughout the United States to partner up with us to become a preferred member. The benefits of becoming a preferred member is to have their business advertised on our site as well as referring any clients with upfitting needs to a local body company within their general vicinity. Our buyers from government agencies are encouraged to go on the site as well and look for local body upfitting companies they are interested in working with. To join our network, they are required to advertise NAFG and the Sourcewell contract on their business website and refer their clients to purchase their cab/chassis needs through NAFG. This creates a relationship that will generate increased sales from both the sides. We are still currently building the website and searching for body companies across the states that would be interested in partnering up with NAFG. Direct Marketing: Prior to the Covid-19 outbreak, our company was promoting direct marketing strategies by contacting local businesses and setting up in person meetings with our dedicated public relations representative. The role of our dedicated representative included in person meetings to discuss our products and services, present website features and to drop off sales contact information for further questions. Bid Number: RFP 000 Vendor Name: 72 HOUR LLC 132 of 324 DocuSign Envelope ID: E 31A4A -5C 5-4O6-A87D-BBO EC3BEB57 33 34 35 Describe your use of technology and digital data (e.g., social media, metadata usage) to enhance marketing effectiveness. In your view, what is Sourcewell-s role in promoting contracts arising out of this RFP? How will you integrate a Sourcewell-awarded contract into your sales process? Are your products or services available through an e-procurement ordering process? If so, describe your e-procurement system and how governmental and educational customers have used it. Social media is a critical part in the way people communicate and connect with each other. Linkedin offers a variety of ways to expand our network by finding and connecting with relevant professionals in the industry. National Auto Fleet Group has utilized Linkedin to reach out to current and potential members though personalized messages. Personalized messages include thanking them for registering on site as well as directing them to on our link to the vvebsite, Linkedin, and Facebook company pages. The goal is to find and connect with people already on our database as well as people that would benefit from our products and services. Current flyers or messages about our company are also posted on the Linkedin site to generate more business. Time is also spent on reading posts from connections to observe any needs that National Auto Fleet Group may assist with. The marketing team also spends time researching goverment entities and prospects through their websites. In addition to looking for new clients, the marketing team will take time to sign up for e-newsletters from cities, counties. school districts and colleges. This will ensure that NAFG will understand needs of government entities and will utilize this information for future campaigns. Example: City of New York posted that they plan to replace current fleet with an all -electric fleet within the next 20 years. Email campaigns focusing an types of electrical vehicles provided by National Auto Fleet Group was sent. NAFG has recently introduced newly built live chat feature on our website. Visitors are prompt to chat with a live sales representative 24 hours a day, 7 days a week. This will ensure that clients that are interested have another avenue of reaching out in addition to emailing or telephone. Benefits of Live chat option include quicker response time to assist buyers for purchasing needs. Our live chat feature not only encourages sales but the value of the sale as well. Live chat benefits from understanding the immediate needs of the buyer and buyers can receive an immediate response not only from questions but recommendations for their needs. The use of marketing campaigns plays a major role in enhancing the growth of our client database. Email is a big part of our lives and every government agency employee has an email address. Carnpaigner.com is the platform used for our email marketing. The goal of email marketing is to reach our target audience and personalizing email flyers with a responsive design. Videos and images are used and can be viewed from an a computer or mobile device. Messages are short and to the point with links leading to the Sourcewell and NAFG homepage. The Campaigner email systern allows us to track email activity based on open rate, unsubscribes and link clicks which is beneficial to understanding email effectiveness. Sourcewell is a trusted brand that government entities can rely on to provide a wide variety of products and services. They aim to simplify the purchasing and procurement process of government entities. The Sourcewell brand integrates a thorough documentation review of all vendors prior to awarding their cooperative contracts. Products and services are from reputable vendors. The brand provides a sense of showing legitimacy and verification of our company name and members understand that products and services provided are from reputable vendors, Clients recognize the Souceweli brand and their vendors as a trusted source that will meet their needs. The main selling point of the brand is the elimination of the need to bid. Soucewell has done for bidding for the government entities which simplifies the purchasing process. This process not only saves money but valuable time as well. Once a client receives a vehicle quote from our sales department, the role of the client is to submit a purchase order when ready. Sourcewell has provided NAFG overwhelrning opportunities to work with government agencies across the United States. The Sourcewell well name represents a high standard of integrity and ethics and we are proud to be part of this dynamic. Sourcewell members have access to a contract that is more flexible than the standard bidding process. Sourcewell is an organization that aids government entities to stay competitive without the frustrations and issues involved with the traditional bidding process, The Sourcewell contract can be also be customized to meet the needs of the client. The sales team has incorporated not only this standard of integrity in their sales practice by ensuring clients we will always assist them with all their vehicle purchasing needs. The cost savings and stress - free nature of the cooperative contracts favors that of the traditional bidding process. it enables vendors to work with qualifying government entities in a more efficient manner. We vow to maintain these levels of standards across the board throughout all departments throughout the company. Our website provides a hands-on empowering approach to ordering vehicles online.Clients can search through many vehicles makes and models with the ability to customize a vehicle tailored to their specific needs of their agency. A personalize quote with pricing can be available in as little as 5 minutes depending on the complexity of the vehicle. If upfitting is needed, a sales representative can be reached though phone, email or on the new live chat feature on the website. Once a customized quote is built, clients have the option to finalize the sales transaction by submitting a purchase order to our sales team via email. This gives complete autonomy to the client to purchase vehicles without the need to speak to a sales rep. If assistance is needed, they can contact sales through email, live chat, or phone. If support is required to build a quote, our sales rep is also available to walk a client through the e-procurement process step by step. This ensures having an available representative to answer any questions if needed and to empower the client to make any future purchases on their own. Clients may also call or email the needs of the company and receive a customized vehicle quote. Bid Number: RFP 060920 Vendor Name. 72 HOUR LLC 133 of 324 DocuSign Envelope ID' E231 A4AC-5C75-4068-A r D-BB69EC3BEB5 7 Table 8: Value -Added Attributes Line Item 36 Question Response Describe any product, equipment, maintenance, or operator training programs that you offer to Sourcewell participating entities. Include details, such as whether training is standard or optional, who provides training, and any costs that apply. NAFG extends any and all Service Training Programs provided by the rvTanufacturer. Many of the programs offered are quoted individually by the manufacture based on class size and region of the country. NAFG will pass these quotes onto the member at dealer cost. ,t Describe any technological advances that your proposed products or services offer. Accomplishments by the Manufacturers like Ford Motor Company, General Motor's and MACK Truck serve the member automatically by having these models available through our proposal. As well as our inclusion of Motive Power Systems in our proposal. Motive Power Systems provides the member the ability to electrify their vehicle. We attached product information and pricing in the "Upfits Available" ZIP file in them "AI! 11 Manufacturer" ZIP file under additional documents. 36 39 40 Describe any „green" initiatives that relate to your company or to your products or services, and include a list of the certifying agency for each. Identify any third -party issued eco- labels, ratings or certifications that your company has received for the equipment or products included in your Proposal related to energy efficiency or conservation, life -cycle design (cradle -to -cradle), or other greenisustainability factors. NAFG has Partnered with 400 mayors Nationwide to create a US Mayor EV Drive Climate Initiative called the Climate Mayor Purchasing Collaborative wvevv.DriveMeet.org to help spread the benefit of members going 100% green. We have 100% Pure Electric vehicles to offer such as the Chevrolet Bolt and Ford Fusion, which are all technology predecessors to the All New Ford Electric F-150. 'die are certain over the next few years, Ford and many other manufacturers will be making available 100% pure electric cab chassis for members to select from. 'Within the same Motive Power PDF's located in the "Upfits Available" Zip File, you will find Motive's System's CARB Certification's (California Air Resource Board) for two engines offering along with there Ford Qualified Vehicle Modifier Certificate. All which help energy conversation and efficiencies. Describe any Women or Minority Business Entity (VMBE), Small Business Entity (SBE), or veteran owned business certifications that your company or hub partners have obtained. Upload documentation of certification (as applicable) in the document upload section of your response. NAFG has provided as an attachment "Upfits Available" our partnership letter with Diversified Leasing. Diversified Leasing is a DVBEISBE Company that has been in business since 2014. As a Disabled Veteran Business Enterprise Licensed in the Stat of California (#1792183) Diversified has offered there certification to be placed on any NAFG quote for a small admin fee which is fully displayed on there partnership letter attached. 41 What unique attributes does your company, your products, or your services offer to Sourcewell participating entities? What makes your proposed solutions unique in your industry as it applies to Sourcewell participating entities? Dedication, Hard Work not to be confused with efforts but with results. NAFG has built its division solely for the purpose of serving the members experience from our 24-hour member website or website improvements and capabilities to thinking outside the box to help a member find a solution. Bid Number: RFP 060920 Vendor Name: 72 HOUR LL 134 of 324 DocuSign Envelope ID: E 31A4AC-5C75-4008-A87D-BB09EC3BEB57 Table 9: Warranty Describe in detail your manufacturer warranty program includingconditions and requirements to qualify, claims procedure, and overall structure. You may upload representative samples of your warranty materials (if applicable) in the document upload section of your response in addition to responding to the questions below. Line Item Question Response 42 Do your warranties cover all products, parts, and labor? We have attached all Warranty information provided by all 11 manufacturers offered in our proposal as an added attachment. 43 Do your warranties impose usage restrictions or other limitations that adversely affect coverage? Each manufacturer have there own usage restrictions that a member should be aware of. Such as improper use of a chassis may not allow it to be covered under warranty. For example, a F-250 being used for a police rated pursuit vehicle would void certain warranties. We encourage for each member to contact us for there particular warranty coverage. 44 Do your warranties cover the expense of technicians' travel time and mileage to perform warranty repairs? Yes, in some cases of a breakdown, manufacturers would tow a member vehicle to there nearest warranty repair facility. 45 Are there any geographic regions of the United States (and Canada, if applicable) for which you cannot provide a certified technician to Iperferm warranty repairs? How will Sourcewell participating entities in these regions be provided service for warranty repair? Each manufacture is different, and we encourage prior to purchasing a product to call in and ask about your specific region and how it's covered. 46 \i/ill you cover warranty service for items made by other manufacturers that are part of your proposal, or are these warranties issues typically passed on to the original equipment manufacturer? All warranties are passed on to the original equipment manufacturer, 47 48 VVhat are your proposed exchange and return programs and policies? Describe any service contract options for the items included in your proposal. We offer no exchange, return programs or policies. Once an order has passed a certain point with the factory and NAFG can not cancel the order after trying to cancel with the manufacturer, then the order is non -cancellable. We offer any and all manufacturer service contracts to all members. There are several parameters which a customized service contract can be created. NAFG will treat each of these as an added factory option and follow the same discount schedule in the price file. Table 10: Payment Terms and Financing options Line Item Question Response 49 What are your payment terms (e.g., net 10, net 30)? Payment terms are Net 20, with a 10-day grace period. 50 51 Do you provide leasing or financing options, especially those options that schools and governmental entities may need to use inorder to make certain acquisitions? Briefly describe your proposed order process. Include enough detail to support your ability to report quarterly sales to Sourcewell as described in the Contract template. For example, indicate whether your dealer network is included in your response and whether each dealer (or some other entity) will process the Sourcewell participating entities' purchase orders. NAFG has partnered with National Cooperative Leasing to offer Sourcewell Contract Lease Terms to all NAFG Quotes for all Sourcewell Members. We have attached a PDF called "NCL Sample Lease" in the Zip File Called "member I U`alk Through" NAFG is structured in a manner where it can monitor most transactions preformed through our Sourcewell Contracts. NAFG has made the tracking of all orders a reasonably organized method to allow fast accurate quarterly reporting. 1 Do you accept the P-card procurement and payment process? If so, is there any additional cost to Sourcewell participating entities for using this process? Yes, up to 2,500 per vehicle, any amount higher than 2,.500 would carry a P=cardl Credit Card transaction fee which will be passed onto the member. Bid Number: RFP 060920 Vendor Name: 72 HOUR LLC 135 of 324 DocuSign Envelope ID: E231A4AC-5C75-4068-A87D-BB09EC3BEB57 Table 11: Pricing and Delivery Provide detailed pricing information in the questions that follow below. Keep in mind that reasonable price and product adjustments can be made during the term of an awarded Contract as desribed in the RFP, the template Contract, and the Sourcewell Price and Product Change Request Form, Line Item Question Response - 53 Describe your pricing model (e.g., line -item discounts or product -category discounts). Provide detailed pricing data (including standard or list pricing and the Sourcewell discounted price) on all of the items that you want Sourcewell to consider as part of your RFP response. If applicable, provide a SKU for each item in your proposal'. Upload your pricing materials (if applicable) in the document upload section of your response. NAFG is offering Line item Discounts Off MSRP for 11 manufacturers detailed in the Price File, NAFG is offering all Upfits to be added to any and all chassis cabs and trucks, details are on the Price Summary Page in the price file. „- 54 Quantify the pricing discount represented by the pricing proposal in this response. For example, if the pricing in your response represents a percentage discount from MSRP or list, state the percentage or percentage range. NAFG Discount Range per Manufacturer is as follows: Ford Motor Company from 2.75% to 18.86% RAM FCA Company from 6.18% to 13.95% Chevrolet from 5.73% to 21.39% HINO from 14.36% to 19.24% ISUZU from 9.98% to 15.57% International from 2.01% to 39.33% Volvo from 23.79% to 24.19% Freightliner/ Western Star from 34.17% to 42.90% IVACK from 16.97% to 31.95% Kenworth from 28.11 to 39.31% Peterbilt from 21.09% to 42.66% Upfits can be added at dealer invoice up to 10%, detailed in the price file. 55 Describe any quantity or volume discounts or rebate programs that you o-fer. We encourage any and all members to contact us if considering ordering 50 or more units for an additional discount quote. 56 Propose a method of facilitating "sourced" products or related services, which may be referred to as "open market" items or 'nonstandard options". For example, you may supply such items "at cost" or "at cost plus a percentage," or you may supply a quote for each such request. Open Market products or Sourced Goods will be treated as any upfit and may be quoted up to a 10% mark-up if applicable. -,. r7 Identify any element of the total cost of acquisition that is NOT included in the pricing submitted with your response. This includes all additional charges associated with a purchase that are not directly identified as freight or shipping charges. For example, list costs for items like pre- delivery inspection, installation, set up, mandatory training, or initial inspection. Identify any parties that impose such costs and their relationship to the Proposer. All considerations have been taken into account in the price file in its entirety. Price Summary Page and Price Tabs contain all costs associated with all quotes. If a member would like a quote for a particular situation and the item requires special training or installation, these charges would be added as part of the upfit and included in the members quote. 58 If freight, delivery, or shipping is an additional cost to the Sourcewell participating entity, describe in detail the complete freight, shipping, and delivery program. All manufacturers charge a standardized "Factory Destination Charge" which is displayed on all window stickers and on all trucks on a dealer's lot. This is not the destination charge that maybe charged to ship a chassis to and from an installer, these additional subsequent movements are all added freight charges and will displayed on the members quote. 59 Specifically describe freight, shipping, and delivery terms or programs available for Alaska. Hawaii, Canada, or any offshore delivery. Freight to these regions carry a specific logistical barrier which carry added cost such as ferry, port and driver cost both to and from the mainland. These added costs will be disclosed and added to any quote for the member to review. 60 Describe any unique distribution and/or delivery methods or options offered in your proposal. NAFG will utilize the power and expertise of the already established Automobile Franchise Distribution Network to have members vehicles delivered promptly there destination. Table 12: Pricing Offered Line Item The Pricing Offered in this Proposal is:* Comments 61 c. better than the Proposer typically offers to GPOs, cooperative procurement organizations, or state purchasing departments. We would never offer any other organization what we offer Sourcewell in volume pricing and offerings, Bid Number: REP 060920 Vendor Name: 72 HOUR LLC 136 of 324 DocuSign Envelope ID: E231A4AC-5C75-4068-A87D-BB09EC3BEB57 Table 13: Audit and Administrative Fee Line Question Response 139 Specifically describe any self -audit process or program that you plan to employ to verify compliance with your proposed Contract with Sourcewell. This process includes ensuring that Sourcewell participating entities obtain the proper pricing, that the Vendor reports all sales under the Contract each quarter, and that the Vendor remits the proper administrative fee to Sourceweli. We have created a member friendly easy to build online quoting system for members to use. Pricing is built directly into the website and is loaded daily by the manufacture MSRP information. Our system will provide an accurate quote 99.g9%, of the time. We have stream lined how our admin fee is processed to allow a quick 15-30 day turn around on �uarterly reports. 63 Identify a proposed administrative fee that you will pay to Sourcewell for facilitating, managing, and promoting the Sourcewell Contract in the event that you are awarded a Contract. This fee is typically calculated as a percentage of Vendor's sales under the Contract or as a per -unit fee; it is not a line -item addition to the Mernber's cost of goods. (See the RFP and template Contract for additional details.) Our Admin Fee has been streamlined to allow for growth to occur with maintaining a high level of accuracy and reporting. Our proposed admin fee would follow these guidelines: F-450, F-550, F600 and like models = 400 flat F-650 and above = 700 flat Partner Deals (NAFG Partners with another dealer) = S 150 fiat All other models F-250 and below = 325 flat Table 14A: Depth and Breadth of Offered Equipment Products and Services Line item Question Response 64 Provide a detailed description of the equipment, products, and services that you are offering in your proposal. NAFG is providing: 11 Manufacturers totaling above 1,284 makes, models and trims ranging from Class 3 to Class 8 Cab anChassis and trucks. With available Upfits to be added ranging from tool boxes to Line Mechanics Bodies. Any and all upfits can be added to our chassis cabs either by our upfit partner supplier or by a rnernbers upfit supplier working with NAFG to provide a Turn Key Quote. 65 Within this RFP category there may be subcategories of solutions. List subcategory titles that best describe your products and services. NAFG Lists all makes, models and trims in each ZIP file under ZIP File "All 11 Manufacturers" representing a combined over 1,284 makes, models and trim combinations for members to choose from along with a subtitle "Upfits" detailed in the price file. Table 14B: Depth and Breadth of Offered Equipment Products and Services Indicate below what Classes of equipment are offered in this proposal. Line Item Category or Type ;Offered v Comments 4. 66 Class 8 chassis r: Yes r No 11 Manufacturers totaling above 1,284 makes and models 67 Class 7 chassis ra Yes (' No 11 rv1anufacturers totaling above 1,284 makes and models 68 Class 6 chassis a Yes n No 11 Manufacturers totaling above 1,284 makes and models 69 Class 5 chassis r': Yes c No 11 Manufacturers totaling above 1,284 makes and models 70 Class 4 chassis r: Yes No 11 Manufacturers totaling above 1,284 makes and models Bid Number: RFP 060920 Vendor Name: 72 HOUR LLB 137 of 324 DocuSign Envelope ID: E231A4AC-5C75-4O584A87D-BBO9EC3BEB57 Table 15: Industry Specific Questions Line Item 71 72 73 74 Question Response * if you are awarded a contract, provide a few examples of internal metrics that will be tracked to measure whether you are having success with the contract. Describe your company's offering in relation to alternative fuel sources, including electric or others. Describe any manufacturing processes or materials utilized that contribute to chassis strength, cab strength, overall durability, driver safety that differentiate your offerings. Describe any differentiating serviceability attributes (remote diagnostics, etc.) your proposal offers. If awarded NAFG will keep track of the number of client quotes it processes which will be done via our website and easy to oversee and base this data month after month to see if our interest is growing at the expected rate we would expect. Our manufacturers products are always striving to bring to market the latest green vehicles to accommodate the ever-increasing demand for echo friendly transportation. Representing 11 manufacturers in our response, we are positive we represent the best of the best in chassis production and represent all strengths each manufacture has to offer. Telematics can be added to any quote for any member since each manufacturer offers some form of telematics, if not we can quote it as a separate upfit item. Table 16: Exceptions to Terms, Conditions, or Specifications Form r Line Item 75. NT!E: To identify any exception, or to request any modification, to the Sourcewell template Contract terms, conditions, or specifications, a Proposer must submit the exception or requested modification on the Exceptions to Terms, Conditions, or Specifications Form immediately below. The contract section, the specific text addressed by the exception or requested modification, and the proposed modification must be identified in detail. Proposer's exceptions and proposed modifications are subject to review and approval of Sourcewell and will not automatically be included in the contract. Contract Section Term, Condition, or Specification Exception or Proposed Modification - NA NA NA NA NA NA Documents Ensure your submission document(s) conforms to the following: 1. Documents in PDF format are preferred. Documents in Word, Excel, or compatible formats may also be provided. 2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell. 3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcewell. 4. If you need to upload more than one (1) document fora single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan." • Financial Strength and Stability - Market Place Success and Financial Stability.zip - Sunday June 07, 2020 21:38:16 • Marketing Plan/Samples - NAFG Marketing Plan.zip - Monday June 08, 2020 16:51:00 • WMBE/MBE/SBE or Related Certificates - Insurance and Related Certificates.zip - Monday June 08, 2020 13:38:53 • Warranty Information -Warranty Info for 11 Manufacturers.zip - Sunday June 07, 2020 19:30:07 • Pricing - NAFG Price File for RFP 060920.zip = Monday June 08, 2020 16:09:06 • Additional Document - ALL 11 MANUFACTURERS MODEL'S AND MEMBER WALK THROUGH'S.zip - Monday June 08, 2020 16:12:26 Bid Number: RFP 060920 Vendor Name: 72 HOUR LLC 138 of 324 DoeuSign Envelope ID: E 31A4A -5 75-4068-A370-BBQ9EC3BEBS7 Proposer's Affidavit PROPOSER AFFIDAVIT AND ASSURANCE OF COMPLIANCE certify that I am the authorized representative of the Proposer subritting the foregoing Proposal with the legal authority to bind the Proposer to this Affidavit and Assurance of Compliance: 1. The Proposer is submitting this Proposal under its full and complete legal name, and the Proposer legally exists in good standing in the jurisdiction of its residence. 2. The Proposer warrants that the information provided in this Proposal is true. correct, and reliable for purposes of evaluation for contract award. 3. The Proposer, including any person assisting with the creation of this Proposal, has arrived at this Proposal independently and the Proposal has been created without colluding with any other person,, company, or parties that have or will submit a proposal under this solicitation; and the Proposal has in all respects been created fairly without any fraud or dishonesty. The Proposer has not directly or indirectly entered into any agreement or arrangement with any person or business in an effort to influence any part of this solicitation or operations of a resulting contract; and the Proposer has not taken any action in restraint of free trade or competitiveness in connection with this solicitation. Additionally, if Proposer has worked with a consultant on the Proposal, the consultant (an individual or a company) has not assisted any other entity that has submitted or will submit a proposal for this solicitation. 4. To the best of its knowledge and belief, and except as otherwise disclosed in the Proposal, there are no relevant facts Or circumstances which could give rise to an organizational conflict of interest. An organizational conflict of interest exists when a vendor has an unfair competitive advantage or the vendor's objectivity in performing the contract is, or might be, impaired. 5. The contents of the Proposal have not been communicated by the Proposer or its employees or agents to any person not an employee or leally authorized agent of the Proposer and will not be communicated to any such persons prior to Due Date of this solicitation. 6. If awarded a contract, the Proposer will provide to Sourcewell Paricipatinc Entities the equipment, products, and services in accordance with the terms, conditions, and scope of a resulting contract. 7. The Proposer possesses, or will possess before delivering any equipment, products, or services, all applicable licenses or certifications necessary to deliver such equipment, products, or services under any resulting contract. 8. The Proposer agrees to deliver equipment, products.. and services through valid contracts, purchase orders, or means that are acceptable to Sourcewell Iv1embers. Unless otherwise agreed to, the Proposer must provide only new and first -quality products and related services to Sourcewell Members under an awarded Contract. g. The Proposer will comply with all applicable provisions of federal, state, and local laws, regulations, rules, and orders. 10. The Proposer understands that Sourcewell will reject RFP proposals that are marked "confidential" (or "nonpublic,'" etc.), either substantially or in their entirety. Under Minnesota Statutes Section 13.591, subdivision 4, all proposals are considered nonpublic data until the evaluation is complete and a Contract is awarded. At that point, proposals become public data. Minnesota Statutes Section 13.37 permits only certain narrowly defined data to be considered a "trade secret," and thus nonpublic data under Minnesota's Data Practices Act. 11. Proposer its employees, agents, and subcontractors are not: a. Included on the "Specially Designated Nationals and Blocked Persons" list maintained by the Office of Foreign Assets Control of the United States Department of the Treasury found at: httos://www.treasury ,downloadsisdnlist.pdf; b. Included on the government -wide exclusions lists in the United States System for Award ianagernent found at: https://www, Barn. gov!pc, rtal/: or c. Presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated Bid Number: RFP 060920 Vendor Name: 72 HOUR LLC 139 of 324 DocuSign Envelope la E231A4A - 75-4O68-. 87D-BBO9E 3BEB 7 by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Vendor certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this solicitation. 7 By checking this box I acknowledge that I am bound by the terms of the Proposer's Affidavit, have the legal authority to submit this Proposal on behalf of the Proposer, and that this electronic acknowledgment has the same legal effect, validity, and enforceability as if I had hand signed the Proposal. This signature will not be denied such legal effect, validity, or enforceability solely because an electronic signature or electronic record was used in its formation. - Jesse Cooper, Fleet Manager, 72 Hour LLC, DBA Naional Auto Fleet Group The Proposer declares that there is an actual or potential Conflict of interest relating to the preparation of its submission, and/or the Proposer foresees an actual or potentialConflict of Interest in performing the contractual obligations contemplated in the bid. r Yes r. No The Bidder acknowledges and agrees that the addendum/addenda below form part of the Bid Document. Check the box in the column „I have reviewed this addendum" below to acknowledge each of the addenda File Name Addendum 11 Class 4-8 Chassis RFP060920 Wed June 3 2020 07:52 AM Addendum_10_Class_4-8_Chassis_IFP060920 Wed May 27 2020 03:40 PM Addendum_9_Class_4-8_C hassisRFP060920 Tue May 26 2020 02:51 PM Addendum_8_Class_4-8 Chassis_RFP060920 Thu May 21 2020 01:21 PM Addendum_7_Class_4-8_Chassis_RFP060920 Mon May 18 2020 03:30 PM Addendum_6_Class_4-8 Chassis RFP060920 Wed May 13 2020 04:40 PM Addendum__Class_4-8_Chassis_RFP060920 Tue May 12 2020.10:00 AM Addendum_4_Class_4-8 C hassis_RFP060920 Man May 4 2020 01:24 PM Addendum 3 Class 4-8 Chassis RFP060920 Wed April 29 2020 03:45 PM Addendum_2_Class_4-8Chassis RFP060920 Wed April 22 2020 01:14 PM Addendurn_1_Class_4-8_C hassis_RFP060920 Fri April 17 2020 12:32 PM have reviewed the below addendum and attachments (if applicable) P' p p r+� l7# p F Pages 2 Bid Number: RFP 060920 Vendor Name: 72 HOUR LLC 140 of 324 The following page(s) contain the backup material for Agenda Item: Resolution of the City Council of the City of National City authorizing the installation of 50 feet of parallel "15- minute" parking and 25 feet of parallel "Loading or Unloading" parking on the north side of E. 8th Street, in front of the future "Market on 8th" at 41 E. 8th Street to increase parking turnover for customers (TSC No. 2020-13). (Engineering/Public Works) Please scroll down to view the backup material. 141 of 324 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 19, 2021 AGENDA► ITEM NO. ITEM TITLE: Resolution of theCity Council of the City of National City authorizing the installation of 50 feet of parallel "15-minute" parking and 25 feet of parallel "Loading or Unloading" parking on the north side of E. 8th Street, in front of the future "Market on 8th" at 41 E. 8th Street to increase parking turnover for customers (TSC No. 0 0-13 . PREPARED BY: Carla Hutchinson, Assistant Engineer - CivilC,H. DEPARTMENT: Engin •- ring/P blic Works PHONE: 619-336-4388 APPROVED BY: EXPLANATION: See attached. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: NIA ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt Resolution authorizing installation of parallel "15-minute" parking and parallel "Loading or Unloading" parking in front of 41 E. 8th Street. BOARD 1 COMMISSION RECOMMENDATION: At their meeting on October 14, 2020, o, the Traffic Safety Committee approved staffs recommendation to install parallel "15-minute" parking and parallel "Loading or Unloading" parking in front of 41 E. 8th Street. ATTACHMENTS: 1. Explanation w' Exhibit 2. Staff Report to the Traffic Safety Committee on October 14, 2020 (TSC No. 2020-13) 3. Resolution 142 of 324 EXPLANATION The owner of "Market on 8th", located at 41 E. 8th Street, has requested time restricted parking on the north side of E. 8th Street, west of "A" Avenue, in front of "Market on 8th" in order to increase parking turnover for customers. The property owner stated that the installation of "1 -minute" and "Loading or Unloading" spaces will increase parking turnover for her customers and allow for more efficient parking enforcement. Staff visited the site and verified that "Market on th" does not have off-street parking. There are approximately 75 feet of "-hour" restricted parallel parking, equal to three (3) parking spaces, in front of the building located in front of 41 E. 8th Street, on the north side of E. 8th Street.. Staff spoke with the property owner and confirmed the "Market on th" will be a food hall concept, featuring 10 food stalls, a coffee shop, a tap room, and 2 retail vendors all with a communal dining area. The proposed parking restrictions on E. 8th Street will allow for the following: two (2) "1 -minute" parking spaces for to -go order pick-up services (Door Dash, Libel- Eats, etc.), and one (1) "Loading or Unloading" parking space for ride share pick-up or drop off services. It shall be noted that per National City Municipal Code Sections 11.32.190 and 11. . 00— "Loading or Unloading" parking zones allow for loading / unloading of passengers for up to 3 minutes, and loading / unloading of materials for up to 20 minutes. This item was presented to the Traffic Safety Committee on October 14, 2020. Staff sent notices to area residents inviting them to Zoom -in or call -in to the Traffic Safety Committee Meeting and/or contact staff with any questions. Staff presented the results of the site evaluation and after discussion, the Traffic Safety Committee voted to approve staff's recommendation to install parallel "15-minute" parking and parallel "Loading or Unloading" parking in front of E. 8th Street. If approved by City Council, all work will be performed by City Public Works 143 of 324 Location Map with Recommended Enhancements (TSC Item: 2020-13) Niederfrank's Ice Cream 50' of proposed paring restriction "1 -minute" parking (2 parking spaces) Market on 8th Street - 41 E. 8th Street 25' of proposed parking restriction "Loading or Unloading" parking (1 parking space) Vee Parts Accessories 172' of existing parking restriction "30-minute" parking (14 parking spaces) 144 of 324 NATIONAL CITY TRAFFIC SAFETY COMMITTEE AGENDA REPORT FOR OCTOBER 14, 2020 ITEM TITLE: ITEM NO. 2020-13 REQUEST TO INSTALL 50 FEET OF PARALLEL "15-MINUTE PARKING" AND 25 FEET OF PARALLEL "LOADING OR UNLOADING" PARKING ON THE NORTH SIDE OF E. 8TH STREET, IN FRONT OF THE FUTURE "MARKET ON T"" AT 41 E. 8TH STREET TO INCREASE PARKING TURNOVER FOR CUSTOMERS PREPARED BY: Carla Hutchinson, Assistant Engineer - Civil Engineering & Public Works Department DISCUSSION: Mr. Joel Tubao, owner of "Market on 8th", located at 41 E. 8th Street, has requested time restricted parking on the north side of E. 8th Street, west of "A" Avenue, in front of "Market on 8th" in order to increase parking turnover for customers. Mr. Tubao stated that the installation of "15-minute" and "Loading or Unloading" spaces will increase parking turnover for her customers and allow for more efficient parking enforcement. Staff visited the site and verified that "Market on 8 " does not have off-street parking. There are approximately 75 feet of "2-hour" restricted parallel parking, equal to three (3) parking spaces, in front of the building located in front of 41 E. 8th Street, on the north side of E. 8th Street. Staff spoke with Mr. Tubao and confirmed the "Market on 8th" will be a food hall concept, featuring 10 food stalls, a coffee shop, a tap room, and 2 retail vendors all with a communal dining area. The proposed parking restrictions on E. 8th Street will allow for the following: two (2) "15-minute" parking spaces for to -go order pick-up services (Door Dash, Uber Eats, etc.), and one (1) "Loading or Unloading" parking space for ride share pick-up or drop off services. It shall be noted that per National City Municipal Code Section 11.32.190 — "Loading or Unloading" parking zones allow for loading / unloading of passengers for up to 3 minutes, and loading / unloading of materials for up to 20 minutes. STAFF RECOMMENDATION: Staff recommends the installation of 50 feet of parallel "1 -minute parking" (equal to 2 parking spaces) and 25 feet of parallel "Loading or Unloading" parking located on the north side of E. 8th Street, west of "A" Avenue, in front of "Market on 3th", to increase parking turnover for customers. EXHIBITS: 145 of 324 I. Correspondence 2. Public Notice 3. Location Map 4. Photos 2020-13 146 of 324 Carla Hutchinson From: Sent: To: Subject: n ick1 Tuesday, March 10, 2020 9:50 AM Stephen Manganielio Requesting change to parking spots on lith St CAUTION: This email originated from outside your organization. Exercise caution when opening attachments or clicking links, especially from unknown senders. Stephen, We had spoke yesterday about requesting changes to the 3 parking spots on the north side of 8th St in front orMarket ontht Market on 8th is a food hall concept that we are bringing Into National City, We will be featuring 10 food stalls, a coffee shop, a tap room, and 2 retail vendors all with a communal dining area. Our goal is to bring the community together in 1 market and for locals to be able to experience a variety of cuisines, local art, and shopping in 1 destination. That being said, we would like to make changes to the 3 parking spots on gth St. We would like to request the furthest East parking space to be our ride share pick up/drop off and the other 2 stalls further West to be 15 miry parking to allow for door dash, Uber eats, to go orders, etc. Please let me know if we can accommodate this request as it Will help our business tremendously due to our limited parking. Nick Fischella r 147 of 324 October 7, 2020 Resident/Property Owner CALIFORNIA NATI1NAUri NCtaRl t]R�lf 1 ED Subject: TRAFFIC SAFETY COMMITTEE (TSC) ITEM NO. 2020-13 REQUEST TO INSTALL 0 FEET OF PARALLEL "15-MINUTE INUTE PARKING" AND 25 FEET OF PARALLEL "LOADING OR UNLOADING" PARKING ON THE NORTH SIDE OF E. 8TH STREET, IN FRONT OF THE FUTURE "MARKET ON 8TH STREET" AT 41 E. 8TH STREET TO INCREASE PARKING TURNOVER FOR CUSTOMERS. Dear Sir/Madame: The City of National City would like to invite you to our next public Traffic Safety Committee Conference Call scheduled for Wednesday, October 14, 2020, at 1:00 P.M. via Zoom. Please use the following information to call -in to the meeting during the scheduled time: Join Zoom Meeting from computer https:// oom.us/j 1 4?pwd=NTVLIYkx1N2VGVURRNIzJIVTFRRi9rdz09 Join Zoom Meeting by phone + 1 669-900-9128 Meeting ID: 975 1373 '4 Password: 079585 If you have any questions, comments, and/or concerns, please contact the Engineering Department at 619-336-4380 and reference Traffic Safety Committee Item Number 2020-13. Sincerely, Roberto Yano, P.E. City Engineer/Director of Public Works RY:ch Enclosure: Location Map 2020-13 1234 National City Boulevard, National City, CA 91950-6530 (619) 336-4380 Fax (619) 336-4397 engineering@nationalcityca.gov 148 of 324 Location Map with Recommended Enhancements (TSC Item: 2020-13) 50' of proposed parking restriction "15-minute" parking (2 parking spaces) Market on Bth Street - 41 E. 8t" Street 25' of proposed parking restriction "Loading or Unloading" parking (1 parking space) N iederfrank's ice Cream gIelo National Sewing Machines "A" Avenue a Vee Parts Accessories 172' of existing parking restriction I, "3-minute" parking (14 parking spaces) Ike 1 149 of 324 50' of proposed parking restriction "IS -minute" parking 25' of proposed parking restriction "Loading or Unloading" parking Location of proposed parking restriction "15-minute" & "Loading or Unloading" parking on E. 8th Street (looking w s Location of proposed parking restriction 'hl 25of proposed parking restriction "Loading or Unloading" parking 50' of proposed parking restriction "1 -minute" parking -minute" & "Loading or Unloading" parking on E. 8th Street (looking east) 150 of 324 The following page(s) contain the backup material for Agenda Item: Temporary Use Permit — Milk & Honey Outdoor Event hosted by Outpouring Outreach Ministry at 1920 Sweetwater Road on December 4, 2021 from 9 a.m. to 4:30 p.m. with no waiver of fees. (Community Development) Please scroll down to view the backup material. 151 of 324 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 19, 2021 AGENDA ITEM NO. ITEM TITLE: Temporary Use Permit — Milk & Honey Outdoor Event hosted by Outpouring Outreach Ministry at 1920 Sweetwater Road on December 4, 2021 from 9 a.m. to 4:30 p.m. with no waiver of fees. PREPARED BY: Dionisia Trejo DEPARTMENT: Community Dev .p ent Department PHONE: (619) 336-4255 APPROVED BY: EXPLANATION: This is a request from Outpouring Outreach Ministry to conduct the Milk & Honey Outdoor Event at 1920 Sweetwater Road on December 4, 2021 from 9 a.m. to 4:30 p.m. Set up for the event will commence at 6 a.m. on the day of the event. This event will include live Christian music, vendors, food trucks and eating areas with tables and chairs. Note: This is the first time this organization has requested a Temporary Use Permit. FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. APPROVED: MIS City fee of $272.00 for processing the TUP through various City departments and $191.00 for the Fire Inspection. Total Fees $463.00 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval with no waiver of fees or in accordance to City Council Policy 802. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: Application for a Temporary Use Permit with recommended conditions of approval. 152 of 324 Type of Event F71 Fair/Festival TUP 1 City of National City Neighborhood Services Department 1243 National City Boulevard • National City, CA 91950 (619) 3364364 fax (619) 336-4217 www. nationalcityca, gov Sp vent Ap Parade/March [Iwaik or Run LJ.Concert/Performance Sporting Event p Other (specify) Event Name & Location Event Title Milk & Honey Outdoor Event (Christian Faith Based Event) Event Location (list all sites being requested) Heart Revolution Church 1920 Sweetwater Rd, National Cit Event Times SetL"' C42r4� Date j jk142-1 Time EventStarts g:00am Date12/' f Time 6:OOam Event Ends Date_ fspl��, ` Time Breakdown En.s Date -j`1 1 � � _ Tim432g 3o',yi Day of VJeek . Saturda..y Dayof•Week Saturday Day of Week Saturday Day of Week Saturday Applicant (Your name) Alexia LowerySponsorin.gOutpouring Outreach Minis Organization Event Coordinator (if different from applicant) Alicia Lowery Mailing Address 2817 Desmond Dene Heights Road, Escondido CA 92026 Day Phone760248287 After Hours Phone same Cell 760-224-8287 Public Information Phone 769367003 E-mail outprh17gmaiLcom Fax760-432•-030( Applicant agrees to investigate, defend, indemnify and hold harmless the City, its officers, employees and agents from and against any and all loss, damage, {lability, claims, demands, detriments, costs, charges, expense (including attorneys fees) and causes of action of any character which the City, its officers, employees and agents may incur, sustain or be subjected to on account of foss or damage to property or the loss of use thereof and for bodily injury to or death of any persons (including but not limited to the employees, subcontractors, agents and invitees of each party hereto) arising out of or in any way connected to the occupancy, enjoyment and use of any City premises under this agreement to the extent permitted by law. Applicant understands this TUP/special event may implicate fees for City services, which will have to be paid in the Citys Finance Department 48 hours prior to the event set-up. The undersigned also understands and accepts the City's refund policy for application processing and facility se and that fees and charges are adjusted ann ally and are subject to change. Signature of applicant: _Date 1 Q. if zw--/ 153 of 324 Special Event Application (continued) plate the foliowing sections w as much detail as sible since fees and requirements are teased, on the information you provide us. e Fees/Proceeds/Rep orting Is your organization a "Tax Exempt, nonprofit" organization? Yes Are admission, entry, vendor or participant fees required? Yes if YES, please explain the purpose and provide amount (s): Nonprofit 501 C3 is still pending. Free admission to the public. vendors will pay a small fee. No No $fistirnated Gross Receipts including ticket, product and sponsorship sales from this event. $ 7,000 Estimated Expenses for this event. $ 10,000 What is the projected amount of revenue that the Nonprofit Organization will receive as a result of this event? Description of Event First time event 7 Returning Event 171 include site map with application Note that this description may be published in our City Public Special Events Calendar: Every September we plan on having Milk & Honey Outdoor Market at Heart Revolution Church. This event will showcase all Christian based vendors, t-shirts, artwork, music, books, etc. We will have food trucks and worship music along with local groups showcasing their music. Estimated Attendance Anticipated # of Participants: 200 Anticipated # of Spectators: 300 14, 154 of 324 Traffic Control, Security, First Aid and Accessibility Requesting to close street(s) to vehicular traffic? Yes • f 4 List any streets requiring closure as a result of the event (provide map): Date and time of street closure: Date and time of street reopening: Other (explain) ‘INENNImb. b, Requesting to post "no parking" notices? Yes No viEf 1-7 Requested "No Parking" on city streets and/or parking lots (list streets/parking lots) (provide map)* ElOther (explain) •Security' and Crowd Control Depending on the number of participants, your event may require Police services. Please describe your procedures for both Crowd Control and Internal Securi security, church Deacons. Along with ex -police officers who attend church. We will provide church Have you hired Professional Security to handle security arrangements for this event? YesEl NofJ If YES, name and address of Security Organization Security Director (Name): Phone: If using the services of a professional security firm and the event will occur on City property, please provide a copy of its insurance certificate, evidencing liability with limits of at leas $1 Million dollars per orcurrence42 Million dollars aggregate, as well s and additional insured endorsement naming the C ,of National City, its officers, employees, and agents as additional insureds. Evidence of insurance must be provided by the vendor or its insurer to the Neighborhood Services Department at the time of •submission. s Is this a night event? Yes NoRfl If YES, please state how the event and surrounding area will be illuminated to ensure safety of the participants and spectators: 3 155 of 324 First Aid Depending on the number of participants, our event may require specific First Aid services. First station to be staffed by event staff? Yes NoFirst aid/CPR certified? Yes No First aid station to be staffed by professional company. *4- Company aid 11 using the servtces of a professional medical organization/company and the event will occur an City property, p e provide a copy of its insurance certificate, evidencing Ilabitity with limits of at -_st $1 Mitilon dollars • - r occurrence/$2 Militon dollars aggregate, as well as and additional insured endrsement naming the City of National City, its officers, employees, and agents as additional insureds. Evidence of insurance must be provided by the vendor or its insurer to the Neighborhood Services Department at the time of submission. Accessibility Please describe your Accessibility Plan for access at your event by individuals with disabilities: This event will be held on Church parking lot, no stairs. This will be easy access to wheelchairs along with handicap parking. We will have port of potties for guest with disabilities. 1 Elements of your Event Setting up a stage? Yes n N Requesting City's PA system Requesting City Stage; if yes, which size? Dimensions (13)(28) Applicant providing own stage Ok*' (Dimensions) Setting up canopies or tents? 120 #ofcanopies size lOx1O # of tents size ElNo canopies/tents being set up 4 Dimensions (20x28) 156 of 324 Setting up tables and chairs? Furnished by Applicant or Contractor ElNotables being set up 100 _ # of chairs Ell No chairs being set up I 0 # of tables El (For City Use Only) Sponsored Events — Does not apply to co -sponsored events # of tables # of chairs Contractor Name Contractor Contact Information No tables being set up No chairs being set up Address Setting up other equipment? LISporting Equipment (explain) Other (explain) City/State Phony Number Not setting up any equipment listed above at event Having amplified sound and/or music? ves[/J Nofl 17 Live music 110 LLJSmaH 4-5 piece live band VIOther {explain) Church worship team and DJ If using live music or a DJ. Contractor Name Address PA System for announcements f7'Jco player or DJ music Large 6+ piece live band 5 City/State Phone Number 157 of 324 Using lighting e uipment at your event? Yesri No Bringing in own lighting equipment Using professional lighting company Company Name Address Using electrical power? Yes Using on -site electricity Bringing in generator(s) cif City/State For sound and/or lighting For sound and/or lighting AINIMMIMMEW- r ��. Phone Number Using Kimball Park Bowl Lighting (from,to, , ) For food and/or refrigeration For food and/or refrigeration Vendor Information PLEASE NOTE: You may be = • ulred to apply for a temporary health permit if food or beve aresoldofgiv,newayduringyours. event. Also sae Permits and Corn = _ . ncWon in the Special Event Guide. For additional inforinatlon on obtaining a temporsry health perm pis contact the County of San Diego Envlronmental Health at (619) 3382 : as Having food and non-alcoholic bever.4ges at your event? Yes Q No1J Vendors preparing food on -site ► # Business License # If yes, please describe how food will be served and/or prepared: Ift") UG5 bit I t� t� .Wiesof ou intend to cook food in th GAS ELECTRIC event area please s .ecify the method: CHARCOAL OTHER (Specify): Vendors bringing pre -packaged food Obi' # ► Business License # Vendors bringing bottled, non-alcoholic beverages (i.e., bottled water, can soda, etc.) ► # Vendors selling food # ► Business License #(s) Vendors selling merchandise # Business License #(s) Food/beverages to be handled by organization; no outside vendors iVendors selling services # Business License #(s) 1:P Explain services Vendors passing out information only (no business license needed) #_ ti:P. Explain type(s) of information Church Ministry Services No selling or informational vendors at event 6 2 158 of 324 Having children activities? Yes No SE NGI'E: In the event in ` : =, • -jumps are provided at the event, The C.Ity �. N =_ • nal City requires commercial I ..,.' ity insurance with (units of at least $1 Mitilon d • = s per occurrence/$2 Mililon rs ate. In = • = Mon, the City of Naltonal City must be named as an Additional Insured pursuant to ;. separate endorsement, which shad be provided by the vendor or its insurer to the City's Risk Ma _ • er, along with the Certiflcate of Insurance, for approval prior to the event. The application should be fiied out at {east one week prior to the event. For questions ar to obtain a copy of the "Fadiiiy Use Applicatio.n", Please contact theEngIni•erIngubik. Works De •� rtment at (619) 336:4580. nInflatable bouncer house # _ r]Rock climbing wall Height nInflatable bouncer slide # n Arts & crafts (i.e., craft making, face painting, etc.) Carnival Rides Having fireworks or aerial display? Yes Vendor name and license # Dimensions Number of shells EIJother Duration Max. size PLEASE NOTE: In the event fireworks or another aenat display is planned for your evens, The City of National City requires cammer&I IiabiIi insurance wtth limits of at least $2 Million dollars TzT o�urrence/ $4 Wan doffars a. • r�t.: te. In addition, the City of National City must be named as an Addition insured pu rsuarit to a sepa rate endorsement, wh ich shaft be pro - by the vendor or its insurer to the City's Risk along with the Certificate of Insurance, for approval prior to the event. Depending an the size and/or nature of the fireworks display, the City reser'ves the right to request higher hab ` its. The vendor must also obtain a fireworks it from the N nal City Fire Depae:t and the cast is $545.00 Arranging for media coverage? Yes Non 11 Yes, but media will not require special set-up Yes, media will require special set-up. Describe ) 159 of 324 Event Signage PLEASE NOTE: For Ctty sponsored or C$OflSOr€d events, banners publicizing the event may be ptaced on the exsfing p art the 1800 black and 3100 biock of Natio -: City .uIevard. The bangers must be mane to the City's s t - iflcations. Please refer to the City's Special Event Guidebook and Fee Schedule for additional information, Are you planning to have signage at your event? Yes No II Yes, we will post signage # _ Dimensions Yard signs to 8x2 flags Yes, having inflatable signage # 0*' (complete Inflatable Signage Request form) Yes, we will have banners # Milk & Honey Outdoor Market What will signs/banners say? How will signs/banners be anchored or mounted? On tents with proper secured attachments Location of banners/signage Entrance, on church walls and on fence. Waste Management PLEA$E NOTE: One toilet for eery 250 to is required, un :_�� s the applicant can show that there are �jjafacik� 'itt the immediate area avoi 113"to the pubic duringthe e*t Are you planning toirovJdportahIe restrooms at the event? Yesri— N If yes, please identify the following: 00b Total number of portable toilets: 10P Total number of ADA accessible portable riiContracting with portable toilet vendor. t> Load -in Day & Time Poraabie toilets to be serviced. Tirne Set-up, Breakdown, Clean-up ets: Cotur�i �nvKo�er��(1 ii�. Company 10•* Load -out Day & Time Setting up the day before the event? TlYes, will set up the day before the event. 0*. # of set-up day(s) No, set-up will occur on the event day Requesting vehicle access onto the turf? Yes, requesting access onto turf for set-up and breakdown (complete attached Vehicle Access Request form) No, vehicles will load/unload from nearby street or parking Jot.. 8 160 of 324 NPDESLitter Fence City to install litter fence Applicant to install litter fence E1N/A Breaking down set-up the day after the event? Yes, breakdown will be the day after the event. ,i0E No, breakdown will occur an the event day. How are you a •ling clean-up? LIUsing City crews Using volunteer clean-up crew during and after event. Using professional cleaning company during and after event. Miscellaneous # of breakdown day(s) Please list anything important about your event not already asked on this application: Vendor information is only an estimate. Vendors will have to register and supply information. si Please note if I can not cover my cost event will be canceled and vendors will be reimbursed. Please make a copy of this application for your records. We do not provide copies. ibt .46 9 161 of 324 pecial Events Pre -Event Sto rm Water Compliance Checklist Special Event Inforrnation Name of Special Event: Event Address:, _ /,i2,0 Stiitetilf&terEvent Ho its GEC} (,01d/ Coordinator: C r Wifiz 0 144,Thin atvia' ally �L gxpected # of Attendees: p4,4•1 o tit C Phone Number: '7 Storm Water Best Managernent radices (BMPs) Review YES NO Will Provide e ough trash cans number of trash provided bins: for the I 0 event? Will Provide enough number recycling of bins recycle provided bins: for the (O event? E � l Will for all ADA portable compliant toilets portable have secondary toilets) containment trays? (exceptions _ . Do all storm drains from entering? have screens to temporarily protect trash and debris Y Are spill cleanup kits readily available at designated spots? 7 4 * A Post-Eveirit Storm Water Co uplian-ce Checklist will be cornpleted by Cu 10 Staff. 162 of 324 City of National City Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured and to sign the Hold H : rmless Agreement. Certificate of insurance must be attached to this permit. The insurance company issuing the insurance policy must have a A.M. Best's Guide Rating of A:VII and that the insurance company is a California admitted company; if not, then the insurance policy to the issuance of the permit for the event. The Certificate Holder must reflect: City of National City Risk Management Department 1243 National City Boulevard National City, CA 91950 Organization: Person in Charge ofActiyity: Address: diCiq Teleph•one:T7(.0 _ aszm mido) 676 q24_0062(t) 12-02•1 SeditirclaiT As a condition of the issuance of a temporary use permit to conduct its activities on public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and the Parking Authority and its officers, employees and agents from and against any and all claims, demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attorneys fees and the costs of litigation, arising out of or related to the use of public property or the activity taken under the permit by the perrnittee or its agents, employees or contractors. Signature of Applicant: Offici.1 Title: qa•-. For O.fffoe Use .n!y Certificate of Insurance Approved Date I 1 163 of 324 Googie Map 1920 Sweetwater Rd 61 c\lt 0, 5 gtk CtiftcKti-- ts4J dqtticAT Ari7J keACI v tcl‘Q..i (Atli ni S6S1 01w kteN "P1/44/10\iCoe AVO‘ic:› Map data 02021 , Map data ©2021 Google 20 ft a M 1 N EI CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DEPARTMENT APPLICATION FOR A TEMPORARY USE PERMIT CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: Outpouring Outreach Ministry EVENT: Milk & Honey Outdoor Event DATE OF EVENT: December 4, 2021 APPROVALS: COMMUNITY SERVICES RISK MANAGER PUBLIC WORKS FINANCE FIRE POLICE ENGINEERING COMMUNITY DEVELOPMENT YES [x] YES [x] YES [ x ] YES [x] YES [x] YES [x] YES [x] YES [x] NO NO NO NO NO NO NO NO SEE CONDITIONS SEE CONDITIONS SEE CONDITIONS SEE CONDITIONS SEE CONDITIONS SEE CONDITIONS SEE CONDITIONS SEE CONDITIONS CONDITIONS OF APPROVAL: PUBLIC WORKS (619)366-4580 No involvement POLICE DEPARTMENT The police department will generate an extra patrol bulletin for our patrol staff. Nothing further from PD. ENGINEERING No comments received COMMUNITY SERVICES No involvement FINANCE No comments received 165 of 324 COMMUNITY DEVELOPMENT Planning 1. Speakers shall face away from residential properties 2. Activities shall comply with Table III of NCMC Title 12 (Noise) Building No comments received Neighborhood Services Neighborhood Notifications — Events are required to notify residents and/or businesses of the surrounding impacted areas by the event. The notice shall include the name of the event, name and phone number of the company/organization producing the event, the dates and times of the event (including set-up and breakdown) and a detailed description of how the residents and/or businesses may be affected, such as by street closures, "No Parking" signs being posted, music at the event, etc. Display of banners -- Banners are allowed on site for event but must be removed immediately thereafter event completion. If you wish to place banners in any location other than on -site, you must get approval from the property/business owner where you intend to display the banner. RISK MANAGER (619) 336-4370 Risk Management has reviewed the above -captioned application for the issuance of a Temporary Use Permit. As much as the event will be held solely on private property, there will be no additional insurance requirements necessary for the issuance of the permit. It should be noted that the applicant properly executed the Hold Harmless and Indemnification Agreement when the Special Event Application was submitted. 166 of 324 FIRE (619) 336-4550 Inspection Required A $191.00 fee will be charged for an After Hour Inspection. Addition fees may charged based on any changes. Stipulations required by the Fire Department for this event are as follows: 1) Access to the area to be maintained at all times, entrances and emergency roadways. No Blocking Off. 2) Fire Department access into and through booth areas are to be maintained at all times. Fire apparatus access roads shall have an unobstructed width of not less than 20 feet and an unobstructed vertical clearance of not less than 14 feet. 3) Fire Hydrants, Fire Department Connections (FDC) Fire Protection Devices, etc. shall not be blocked or obstructed. 4) Participants on foot are to move immediately to the sidewalk upon approach of emergency vehicle(s). 5) Vehicles in roadway are to move immediately to the right upon approach of emergency vehicle(s). 6) Provide a 2A:10BC fire extinguisher at stage area. Extinguisher to be mounted in a visible location between 3'/2`to 5' from the floor to the top of the extinguisher. Maximum travel distance from an extinguisher shall not be more than 75 feet travel distance. 7) Internal combustion power sources that may be used for inflatables, light towers, etc. shall be of adequate capacity to permit uninterrupted operation during normal operating hours. Refueling shall be conducted only when the ride is not in use. 8) Internal combustion power sources shall be isolated from contact with the public by either physical guards, fencing or an enclosure. Internal combustion power shall be at least 20 feet away stage area. 9) Any electrical power used is to be properly grounded and approved. Extension cords shall be used as "Temporary Wiring" only. 10) A fire safety inspection is to be conducted by the Fire Department prior to operations of the event to include all food trucks, cooking areas, vendor booths, etc. 167 of 324 11) If tents or canopies are used, the following information shall apply: • Tents having an area from 0-200 square feet shall be $300.00 • Tents having an area more than 201 square feet shall be $600.00 • Canopies having an area from 0-400 square feet shall be no charge. • Canopies from 401-500 square feet shall be $353.00. • Canopies from 501-600 square feet shall be $394.00. • Canopies from 601 square feet or greater shall be $515.00. • Multiple tents and or canopies placed together equaling or greater than the above stated information shall be charged accordingly. • Tents shall be flame-retardant treated with an approved State Fire Marshal seal attached. A permit from the Fire Department must be obtained. Fees can only be waived by the City Council. A ten feet separation distance must be maintained between tents and canopies. A permit from the Fire Department must be obtained. Cooking shall not be permitted under tents or canopies unless the tents or canopies meet State Fire Marshal approval for cooking. See Fire Marshal for required explanation. 12) Concession stands utilized for cooking shall have a minimum of 10 feet of clearance on two sides and shall not be located within 10 feet of tents or canopies. 13) All cooking booths or areas to have one 2A:10BC fire extinguisher. If grease or oil is used in cooking a 40:BC or class "K" fire extinguisher will be required. See Fire Marshal for required explanation. All fire extinguishers to have a current State Fire Marshal Tag attached. 14) First Aid will be provided by the Church. 15) Required inspections taking place, after hours, holidays, and weekends will be assessed a minimum of one hundred ($191.00) dollars. 16) Food Trucks require a NCFD permit and inspection prior to the event. They most contact NCFD prior to the event and make arraignments for the inspection or they may not be allowed to participate. 17) 10'x10' and be clustered but must be separated to meet code if not flame retardant. Contact the National City Fire Dept. at 619-336-4550 if you need more info. Fire Department fees can only be waived by City Council. 168 of 324 The following page(s) contain the backup material for Agenda Item: Warrant Register # 10 for the period of 9/01/21 through 9/07/21 in the amount of $3,816,368.09. (Finance) Please scroll down to view the backup material. 169 of 324 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 19, 2021 AGENDA ITEM NO.: ITEM TITLE: Warrant Register #10 for the period of 9/01/21 through 9/07/21 in the amount of $3,816,368.09. (Finance) PREPARED BY: Karla Apalategui, Senior Accounting Assistant DEPARTMENT: Finance PHONE: 619-336-4572 EXPLANATION: APPROVED BY: Per Government Section Code 37208, below are the payments issued for period 9/01/21 - 9/07/21. Consistent with Department of Finance's practice, listed below are all payments above $50,000. Vendor Check/Wire Amount City of San Diego 949611 1,513,863.00 Explanation Sewer Transportation — Treatment Fees FY 2022 FINANCIAL STATEMENT: ACCOUNT NO. Warrant total $ 3,816,368.09 . APPROVED: 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 $3,816,368.09 BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: Warrant Register # 10 170 of 324 CALIFORNIA NATIONAL Clary - tiVCORPORR'PED - - WARRANT REGISTER # 10 9/7/2021 PAYEE DESCRIPTION ANDERSON RETIREE HEALTH BENEFITS - SEPT 2021 BEARD RETIREE HEALTH BENEFITS - SEPT 2021 BECK RETIREE HEALTH BENEFITS - SEPT 2021 BISHOP RETIREE HEALTH BENEFITS - SEPT 2021 BOEGLER RETIREE HEALTH BENEFITS - SEPT 2021 BULL RETIREE HEALTH BENEFITS - SEPT 2021 CAMEON RETIREE HEALTH BENEFITS - SEPT 2021 CARRILLO RETIREE HEALTH BENEFITS - SEPT 2021 COLE RETIREE HEALTH BENEFITS - SEPT 2021 COLLINSON RETIREE HEALTH BENEFITS - SEPT 2021 CONDON RETIREE HEALTH BENEFITS - SEPT 2021 CORDERO RETIREE HEALTH BENEFITS - SEPT 2021 DALLA RETIREE HEALTH BENEFITS - SEPT 2021 DANESHFAR RETIREE HEALTH BENEFITS - SEPT 2021 DEESE RETIREE HEALTH BENEFITS - SEPT 2021 DESROCHERS RETIREE HEALTH BENEFITS - SEPT 2021 DIAZ RETIREE HEALTH BENEFITS - SEPT 2021 DILLARD RETIREE HEALTH BENEFITS - SEPT 2021 DREDGE RETIREE HEALTH BENEFITS - SEPT 2021 DUONG RETIREE HEALTH BENEFITS - SEPT 2021 EISER III RETIREE HEALTH BENEFITS - SEPT 2021 ESPIRITU RETIREE HEALTH BENEFITS - SEPT 2021 ETZLER RETIREE HEALTH BENEFITS - SEPT 2021 FABINSKI RETIREE HEALTH BENEFITS - SEPT 2021 FERNANDEZ RETIREE HEALTH BENEFITS - SEPT 2021 FIFIELD RETIREE HEALTH BENEFITS - SEPT 2021 GAUT RETIREE HEALTH BENEFITS - SEPT 2021 GELSKEY RETIREE HEALTH BENEFITS - SEPT 2021 GIBBS JR RETIREE HEALTH BENEFITS - SEPT 2021 GONZALES RETIREE HEALTH BENEFITS - SEPT 2021 HANSON RETIREE HEALTH BENEFITS - SEPT 2021 HARLAN RETIREE HEALTH BENEFITS - SEPT 2021 HAUG RETIREE HEALTH BENEFITS - SEPT 2021 HERNANDEZ RETIREE HEALTH BENEFITS - SEPT 2021 HERNANDEZ RETIREE HEALTH BENEFITS - SEPT 2021 HERNANDEZ RETIREE HEALTH BENEFITS - SEPT 2021 HODGES RETIREE HEALTH BENEFITS - SEPT 2021 IBARRA RETIREE HEALTH BENEFITS - SEPT 2021 JONES RETIREE HEALTH BENEFITS - SEPT 2021 JONES RETIREE HEALTH BENEFITS - SEPT 2021 JUNIEL RETIREE HEALTH BENEFITS - SEPT 2021 KIMBLE RETIREE HEALTH BENEFITS - SEPT 2021 KLOS RETIREE HEALTH BENEFITS - SEPT 2021 LAFRENIERE RETIREE HEALTH BENEFITS - SEPT 2021 LEACH RETIREE HEALTH BENEFITS - SEPT 2021 LIMFUECO RETIREE HEALTH BENEFITS - SEPT 2021 MATIENZO RETIREE HEALTH BENEFITS - SEPT 2021 MCCABE RETIREE HEALTH BENEFITS - SEPT 2021 CHK NO DATE AMOUNT 354487 9/7/21 110.00 354488 9/7/21 70.00 354489 9/7/21 140.00 354490 9/7/21 110.00 354491 9/7/21 260.00 354492 9/7/21 580.00 354493 9/7/21 400.00 354494 9/7/21 290.00 354495 9/7/21 165.00 354496 9/7/21 420.00 354497 9/7/21 280.00 354498 9/7/21 520.00 354499 9/7/21 900.00 354500 9/7/21 250.00 354501 9/7/21 660.00 354502 9/7/21 110.00 354503 9/7/21 680.00 354504 9/7/21 480.00 354505 9/7/21 250.00 354506 9/7/21 280.00 354507 9/7/21 250.00 354508 9/7/21 620.00 354509 9/7/21 460.00 354510 9/7/21 220.00 354511 9/7/21 270.00 354512 9/7/21 540.00 354513 9/7/21 700.00 354514 9/7/21 115.00 354515 9/7/21 120.00 354516 9/7/21 480.00 354517 9/7/21 135.00 354518 9/7/21 500.00 354519 9/7/21 120.00 354520 9/7/21 500.00 354521 9/7/21 600.00 354522 9/7/21 400.00 354523 9/7/21 200.00 354524 9/7/21 780.00 354525 9/7/21 60.00 354526 9/7/21 480.00 354527 9/7/21 50.00 354528 9/7/21 300.00 354529 9/7/21 480.00 354530 9/7/21 660.00 354531 9/7/21 600.00 354532 9/7/21 160.00 354533 9/7/21 100.00 354534 9/7/21 280.00 1/3 171 of 324 CALIFORNIA NATIONAL Clary - tiVCORPORR'PED - - WARRANT REGISTER # 10 9/7/2021 PAYEE DESCRIPTION CHK NO DATE AMOUNT MCDANIEL RETIREE HEALTH BENEFITS - SEPT 2021 354535 9/7/21 290.00 MEDINA RETIREE HEALTH BENEFITS - SEPT 2021 354536 9/7/21 105.00 MEEKS RETIREE HEALTH BENEFITS - SEPT 2021 354537 9/7/21 460.00 MENDOZA RETIREE HEALTH BENEFITS - SEPT 2021 354538 9/7/21 290.00 MINER RETIREE HEALTH BENEFITS - SEPT 2021 354539 9/7/21 580.00 MORRISON RETIREE HEALTH BENEFITS - SEPT 2021 354540 9/7/21 520.00 NAGLE RETIREE HEALTH BENEFITS - SEPT 2021 354541 9/7/21 460.00 NOTEWARE RETIREE HEALTH BENEFITS - SEPT 2021 354542 9/7/21 120.00 OLIVARES RETIREE HEALTH BENEFITS - SEPT 2021 354543 9/7/21 280.00 OLIVERIA RETIREE HEALTH BENEFITS - SEPT 2021 354544 9/7/21 360.00 PAUU JR RETIREE HEALTH BENEFITS - SEPT 2021 354545 9/7/21 340.00 PE RETIREE HEALTH BENEFITS - SEPT 2021 354546 9/7/21 300.00 PEASE JR RETIREE HEALTH BENEFITS - SEPT 2021 354547 9/7/21 140.00 PETERS RETIREE HEALTH BENEFITS - SEPT 2021 354548 9/7/21 290.00 POST RETIREE HEALTH BENEFITS - SEPT 2021 354549 9/7/21 280.00 RAY RETIREE HEALTH BENEFITS - SEPT 2021 354550 9/7/21 190.00 ROARK RETIREE HEALTH BENEFITS - SEPT 2021 354551 9/7/21 135.00 RODRIGUEZ RETIREE HEALTH BENEFITS - SEPT 2021 354552 9/7/21 260.00 RUIZ RETIREE HEALTH BENEFITS - SEPT 2021 354553 9/7/21 310.00 SAINZ RETIREE HEALTH BENEFITS - SEPT 2021 354554 9/7/21 300.00 SANCHEZ RETIREE HEALTH BENEFITS - SEPT 2021 354555 9/7/21 330.00 SERVATIUS RETIREE HEALTH BENEFITS - SEPT 2021 354556 9/7/21 340.00 SHOEMAKER RETIREE HEALTH BENEFITS - SEPT 2021 354557 9/7/21 480.00 SILVA RETIREE HEALTH BENEFITS - SEPT 2021 354558 9/7/21 580.00 SMITH RETIREE HEALTH BENEFITS - SEPT 2021 354559 9/7/21 320.00 SMITH RETIREE HEALTH BENEFITS - SEPT 2021 354560 9/7/21 560.00 STEWART RETIREE HEALTH BENEFITS - SEPT 2021 354561 9/7/21 200.00 TIPTON RETIREE HEALTH BENEFITS - SEPT 2021 354562 9/7/21 250.00 VERRY RETIREE HEALTH BENEFITS - SEPT 2021 354563 9/7/21 280.00 VILLAGOMEZ RETIREE HEALTH BENEFITS - SEPT 2021 354564 9/7/21 480.00 WHITE RETIREE HEALTH BENEFITS - SEPT 2021 354565 9/7/21 230.00 WILKINS RETIREE HEALTH BENEFITS - SEPT 2021 354566 9/7/21 520.00 YBARRA RETIREE HEALTH BENEFITS - SEPT 2021 354567 9/7/21 220.00 RETIREE HEALTH BENEFITS 27,935.00 ACME SAFETY & SUPPLY CORP VEST WITH BLACK BOTTOM 354568 9/7/21 454.58 AETNA BEHAVIORAL HEALTH EMPLOYEE ASSISTANCE PROGRAM - SEPTEMBER 354569 9/7/21 984.50 ALDEMCO FOOD AS NEEDED FOR NUTRITION CENTER FY 354570 9/7/21 2,417.89 ALDEMCO CONSUMABLES AS NEEDED FOR NUTRITION 354571 9/7/21 210.93 ALL FRESH PRODUCTS FOR FOOD AS NEEDED FOR NUTRITION CENTER 354572 9/7/21 717.40 ASSI SECURITY INC PROVIDE SECURITY SERVICES AND REPAIRS 354573 9/7/21 1,235.00 AYDELOTTE HOTEL X2 AYDELOTTE & SEGAL 354574 9/7/21 725.64 BROADWAY AUTO GLASS OFF -SITE WINDOW TINT & REPAIR 354575 9/7/21 241.63 CALIFORNIA ASSOCIATION OF CODE CACEO REGISTRATION SORIANO / NSD 354576 9/7/21 350.00 CALIFORNIA ELECTRIC SUPPLY MOP 45698 ELECTRIC SUPPLIES - PW 354577 9/7/21 155.12 COMMERCIAL AQUATIC SERVICE INC MUNICIPAL POOL SUPPLIES & PARTS 354578 9/7/21 716.70 EXPRESS PIPE AND SUPPLY CITYWIDE PLUMBING PARTS, MATERIALS TOOL 354579 9/7/21 1,071.82 FACTORY MOTOR PARTS MOP 82766 AUTO SUPPLIES - PW 354580 9/7/21 19.11 GRAINGER MOP 65179 GENERAL SUPPLIES - PW 354581 9/7/21 52.29 2/3 172 of 324 CALIFORNIA NATIONAL Clary PAYEE HOME DEPOT CREDIT SERVICES INLAND KENWORTH INC LASER SAVER INC LEFORT'S SMALL ENGINE REPAIR NATIONAL CITY AUTO TRIM PADRE JANITORIAL SUPPLIES PARTS AUTHORITY METRO LLC PENSKE FORD POWERSTRIDE BATTERY CO INC PRO BUILD COMPANY PROCHEM SPECIALTY PRODUCTS INC PROFESSIONAL SEARCH GROUP LLC PRUDENTIAL OVERALL SUPPLY SAN DIEGO GAS & ELECTRIC SAN DIEGO GAS & ELECTRIC SEAPORT MEAT COMPANY SHARP REES STEALY MED GROUP SITEONE LANDSCAPE SUPPLY LLC SMART & FINAL SMART SOURCE OF CALIFORNIA LLC SOLANA CENTER FOR SBCS CORPORATION SOUTH COAST EMERGENCY SOUTHWEST SIGNAL SERVICE STAPLES BUSINESS ADVANTAGE SYSCO SAN DIEGO INC THE STAR NEWS TUBAO U S BANK US BANK VALLEY INDUSTRIAL SPECIALTIES WETMORES WOODRUFF, SPRADLIN & SMART APC WIRED PAYMENTS CITY OF SAN DIEGO SECTION 8 HAPS PAYROLL Pay period Start Date 17 8/10/2021 - 04,coaponaerED - - WARRANT REGISTER # 10 9/7/2021 DESCRIPTION GENERAL SUPPLIES NEEDED FOR PARKS MOTOR -BLOWER DBL SHAFT 1SPD 12 INK FOR EL TOYON REC CENTER BLADE OREGON 96-801 R&M CITY VEHICLES AS NEEDED FY 2022 FOR CONSUMABLES AS NEEDED FOR NUTRITION MOP 75943 AUTO SUPPLIES - PW R&M CITY VEHICLES FY 2022 AUTO BATTERIES TO REPLENISH STOCK MLWKE M18 REDLITH 5AH BTTRY 2PK, MFG/FIRE 5GAL PALL CAR GLO PINK CAR WASH SOAP TEMP SVCS/ FINANCE -AP/ CBAUTISTA NUTRITION CENTER LAUNDRY & CLEANING SERVICES SAN DIEGO GAS & ELECTRIC / NUTRITION SAN DIEGO GAS & ELECTRIC / FACILITIES FOOD / NUTRITION CENTER PRE -EMPLOYMENT PHYSICALS MOP 69277 LANDSCAPE SUPPLIES - PW CDBG TEEN SNACKS FOR CENTER BLDG FORMS - SMART SOURCE - MOP 63845 SB 1383 COMPLIANCE SUPPORT SVCS CARES ACT CDBG-CV AGREEMENT REIMBURSEMENT HOSE ASSY, COMPRESS DISCHARGE INTERSERCTION MAINTENANCE MOP 45704 OFFICE SUPPLIES - PW FOR FOOD AS NEEDED FOR NUTRITION CENTER PUBLIC NOTICE - STAR NEWS T&A REFUND FOR 41 E 8TH STREET US BANK CREDIT CARD SERVICES TDA CONSULTING ONLINE TRAINING MOP 46453 BUILDING SUPPLIES - PW AGM31 BATTERY 1150 GEN MGR MONTHLY INV JULY 2021 CHK NO DATE AMOUNT 354582 9/7/21 397.66 354583 9/7/21 137.26 354584 9/7/21 748.97 354585 9/7/21 828.68 354586 9/7/21 208.13 354587 9/7/21 373.97 354588 9/7/21 5.43 354589 9/7/21 375.00 354590 9/7/21 111.93 354591 9/7/21 4,628.60 354592 9/7/21 154.14 354593 9/7/21 6,387.58 354594 9/7/21 957.18 354595 9/7/21 1,876.02 354596 9/7/21 337.61 354597 9/7/21 1,753.85 354598 9/7/21 998.00 354599 9/7/21 298.96 354600 9/7/21 270.40 354601 9/7/21 881.41 354602 9/7/21 17,725.00 354603 9/7/21 1,613.00 354604 9/7/21 433.01 354605 9/7/21 13,788.83 354606 9/7/21 640.16 354607 9/7/21 1,960.16 354608 9/7/21 269.06 354609 9/7/21 413.44 354610 9/7/21 1,596.42 354611 9/7/21 309.99 354612 9/7/21 787.53 354613 9/7/21 1,082.89 354614 9/7/21 2,750.00 A/P Total 102,387.88 SEWER TRANSPORTATION — TREATMENT FEES FY 2022 949611 9/1/21 1,513,863.00 Start Date 9/1/2021 End Date 8/23/2021 End Date 9/7/2021 Check Date 9/1/2021 1,007,304.00 1,192,813.21 GRAND TOTAL $ 3,816,368.09 3/3 173 of 324 The following page(s) contain the backup material for Agenda Item: Warrant Register #11 for the period of 9/08/21 through 9/14/21 in the amount of $462,311.81. (Finance) Please scroll down to view the backup material. 174 of 324 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 19, 2021 AGENDA ITEM NO.: ITEM TITLE: Warrant Register #11 for the period of 9/08/21 through 9/14/21 in the amount of $462,311.81. (Finance) PREPARED BY: Karla Apalategui, Senior Accounting Assistant DEPARTMENT: Finance PHONE: 619-336-4572 EXPLANATION: APPROVED BY: Per Government Section Code 37208, below are the payments issued for period 9/01/21 - 9/07/21. Consistent with Department of Finance's practice, listed below are all payments above $50,000. Vendor Check/Wire Amount Explanation Health Net 354623 82,902.96 Grp#R1192A — Sept 2021 Health Net Ins Kaiser Foundation 354627 191,461.48 Grp#104220-0002 / Aug 2021 Kaiser Ins FINANCIAL STATEMENT: ACCOUNT NO. Warrant total $462,311.81 . APPROVED: 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 $462,311.81 BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: Warrant Register # 11 175 of 324 r- CALIFORNIA -K+ PAYEE CAPF CALIFORNIA LAW ENFORCEMENT DELTA DENTAL DELTA DENTAL DELTA DENTAL INSURANCE CO DELTA DENTAL INSURANCE CO HEALTH NET HEALTH NET HEALTH NET INC HEALTH NET INC HEALTH NET INC HEALTH NET INC KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS RELIANCE STANDARD RELIANCE STANDARD SASI 2-1-1 SAN DIEGO A/G COLLISION CENTER ALDEMCO ALL FRESH PRODUCTS BAUER COMPRESSORS BOCKS AWARDS INCORPORATED CALIFA GROUP CALIFORNIA ASSOCIATION OF CODE CELLEBRITE INC CRAWFORD CROSSEN-FOWLER CRUZ DEAN GAZZO ROISTACHER LLP DEAN GAZZO ROISTACHER LLP DEAN GAZZO ROISTACHER LLP DEAN GAZZO ROISTACHER LLP DELL MARKETING L P ENTERPRISE FLEET MANAGEMENT FEDEX GARRETT GOVERNMENT FINANCE JONES L C ACTION LASER SAVER INC MAYO SALAS MOSTOFIAN NAPA AUTO PARTS NATIONAL CREDIT REPORTING ATi0N L airy ,O, D TNOOl,pOR onATE0 WARRANT REGISTER # 11 9/14/2021 DESCRIPTION SEPTEMBER 2021 - FIRE LTD SEPTEMBER 2021 - PD LTD GRP#05-0908600000/SEPTEMBER 2021 DENTAL GRP#05-0908601002/SEPTEMBER 2021 COBRA GRP#05-7029600000 - SEPTEMBER 2021 PMI GRP#05-7029600002 - SEPTEMBER 2021 COBRA GRP#N7176F - SEPTEMBER 2021 HEALTH NET INS GRP#R1192R - SEPTEMBER 2021 HEALTH NET INS GRP#R1192A - SEPTEMBER 2021 HEALTH NET INS GRP#57135A - SEPTEMBER 2021 HEALTH NET INS GRP#LB439A - SEPTEMBER 2021 HEALTH NET INS GRP#LB439F - SEPTEMBER 2021 HEALTH NET INS GRP#104220-0002 / AUGUST 2021 KAISER INS GRP#104220-01,06,07 - AUGUST 2021 GRP#104220-0005 / AUGUST 2021 KAISER HD GRP#104220-03, 09 / AUGUST 2021 KAISER GRP#104220-7002 / AUGUST 2021 KAISER RET GRP#VAI826233 - JULY 2021 / VC1801146 GRP#VAI826233 / AUGUST 2021 / VCI801146 REF#119193 / INSURANCE CITIES UNRESTRICTED CONTRIBUTION CITATION REFUNDS - AUGUST 2021 FOOD / NUTRITION CENTER FOOD / NUTRITION CENTER 96-347-1SSMSAQC STATION ADAPTER/FIRE MEDAL OF VALOR & COURAGE AND COURAGE CALIFA INVOICE Q4 FY21 CACEO WEBINAR - NSD FY 22 RENEWAL REIMB / INSURANCE OVERPAYMENT REIMB / INSURANCE OVERPAYMENT TIUTION REIMBURSEMENT LIABILITY CLAIM COST LIABILITY CLAIM COST LIABILITY CLAIM COST LIABILITY CLAIM COST DELL P2419H MONITORS ENTERRPISE FLEET LEASE - ENG/PW POSTAGE / FIRE, BOGLE CITATION REFUNDS - AUGUST 2021 GFOA BUDGET AWARD APPLICATION FY2022 REIMB / INSURANCE OVERPAYMENT PEPPERBALL SUPPLIES MOP 04840 PD TONER CITATION REFUNDS - AUGUST 2021 LIABILITY CLAIM COST MOP 45735. SUPPLIES FOR PARKS MARCH-2021 FEE FOR CRIMINAL REPORT CHK NO 354615 354616 354617 354618 354619 354620 354621 354622 354623 354624 354625 354626 354627 354628 354629 354630 354631 354632 354633 354634 354635 354636 354637 354638 354639 354640 354641 354642 354643 354644 354645 354646 354647 354648 354649 354650 354651 354652 354653 354654 354655 354656 354657 354658 354659 354660 354661 354662 DATE 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 9/14/21 AMOUNT 1,150.50 2,107.00 15,096.30 134.71 2,509.98 100.32 1,598.46 832.36 82,902.96 5,008.61 2,469.88 714.18 191,461.48 18,310.34 10,875.64 6,433.84 2,489.36 8,152.38 3,916.58 42.60 11,716.40 130.00 2,351.43 731.34 161.38 959.62 9,999.22 37.50 4,676.25 158.76 158.76 1,947.00 7,349.45 1,600.00 817.00 200.00 5,091.41 15,595.10 34.06 30.00 575.00 70.00 2,116.83 527.16 10.00 965.00 204.58 581.35 1/2 176 of 324 r- CALIFORNIA -K+ OFFICE SOLUTIONS BUSINESS OPTUM P V HOLDING CORP PRO BUILD COMPANY PRUDENTIAL OVERALL SUPPLY REGISTRAR OF VOTERS RMG COMMUNICATIONS ROMERO ALVAREZ SAFARILAND, LLC SAN DIEGO PET SUPPLY SMART SOURCE OF CALIFORNIA LLC STAPLES BUSINESS ADVANTAGE SYSCO SAN DIEGO INC TARGET TERRY U S BANK WILLY'S ELECTRONIC SUPPLY WSP USA INC WSP USA INC YBARRA NATIONA.L C 1! 1u tNOoi,ponxrEo • WARRANT REGISTER # 11 9/14/2021 MOP #83778 / FIRE, OFFICE SUPPLIES MONTHLY WAIVER SVC FEES FOR APRIL - JUNE CITATION REFUNDS - AUGUST 2021 MOP 20462 PD SUPPLIES BLACK BIB APRON GROCER STYLE PETITION SIGNATURE VERIFICATION RMG COMMUNICATIONS CERTIFICATION PROGRAM - REIMBURSEMENT PE SUPPLIES / PD MOP 02975 PD K9 SUPPLIES NOTICE OF CORRECTION MOP 20468 PD SUPPLIES FOOD / NUTRITION CENTER GUN BUY BACK PROGRAM / PD REFUND -FIRE SAFETY RE -INSPECTION PERMIT MOP 19657 CC PD MOP 00351 PD SUPPLIES WSP USA NTP FOR THE NATIONAL CITY FOCUSED GENERAL PLAN UPDATE REIMB / INSURANCE OVERPAYMENT GRAND TOTAL 354663 9/14/21 8.67 354664 9/14/21 107.25 354665 9/14/21 70.00 354666 9/14/21 64.49 354667 9/14/21 284.60 354668 9/14/21 4,709.00 354669 9/14/21 742.50 354670 9/14/21 372.00 354671 9/14/21 1,870.97 354672 9/14/21 1,741.22 354673 9/14/21 883.49 354674 9/14/21 1,350.17 354675 9/14/21 2,094.71 354676 9/14/21 3,000.00 354677 9/14/21 275.00 354678 9/14/21 8,389.36 354679 9/14/21 68.95 354680 9/14/21 8,740.61 354681 9/14/21 2,277.98 354682 9/14/21 158.76 A/P Total 462,311.81 $ 462,311.81 2/2 177 of 324 The following page(s) contain the backup material for Agenda Item: Public Hearing and the Introduction of an Ordinance of the City Council of the City of National City establishing community choice aggregation in the city of National City. (Engineering/Public Works) Please scroll down to view the backup material. 178 of 324 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 19, 2021 AGENDA ITEM NO. ITEM TITLE: Public Hearing and the Introduction of an Ordinance of the City Council of the City of National City establishing community choice aggregation in the city of National City. Roberto Yano, Director of Public Works / PREPARED BY: City Engineer PHONE: 19-336-4383 EXPLANATION See attached. DEPARTMENT: Engineeri APPROVED BY: Public Wor FINANCIAL STATEMENT: ACCOUNT NO. N/A APPROVED: APPROVED: ENVIRONMENTAL REVIEW: This action is not subject to review under the California Environmental Quality Act (CEQA). ORDINANCE INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Introduce Ordinance of the City Council of the City of National City establishing community choice aggregation. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS: I. Explanation 2. Ordinance (First Reading) 179 of 324 Explanation: In 2019, staff presented a preliminary report on the feasibility of possible Community Choice Aggregation (CCA) models and associated pros and cons with each one. Council gave staff direction to continue to monitor the development ofthe County's CCA and return with an update. On September 21, 2021 Council received a preliminary update to the City's Climate Action Plan (CAP). It outlined the strategies included to achieve the specific state required environmental targets of 40% below 1990 levels by 2030 and 80% below 1990 levels by 2050. Central to the updated CAP recommendations is joining a CCA. On that same night, Council gave direction to return to Council with a CCA ordinance and a Joint Powers Authority (JPA) Agreement with San Diego Community Power (SDCP). The desire to launch CCA service in 2023 has been expressed. Staff has been actively investigating the feasibility of commencing CCA service for electric customers within the city of National City with the objective of making greater renewable electric portfolio content available to customers, providing greater local involvement over the provision of electric commodity services, and promoting competitive commodity rates. Assembly Bill 117 (tat. 2002, ch. 838; see California Public Utilities Code section 366.2; the "Act"), added statutes to the Public Utilities Code authorizing local governmental bodies to individually or .jointly provide retail electric commodity service to an aggregation of customs within their jurisdictions, a service referred to as CCA. Pursuant to Sections 331.1(b) and 366.2 ofthe Act, two or more entities authorized to be a community choice aggregator may participate jointly in a CCA program through a Joint Powers Authority established. pursuant to chapter (commencing with Section 6500) of Division 7 of Title 1 of the Government Code; if each entity adopt the ordinance required by Public Utilities Section 366.2; and The City wishes to implement a CCA program at this time. Under Public Utilities Code section 366.2. customers have the right to opt out of the CCA program and continue to receive electric commodity service from the incumbent utility. A JPA Agreement will be necessary to join SDCP. The JPA agreement with SDCP will be brought to Council for approval following the adoption of the ordinance. in February 2018, the California Public Utilities Commission issued Resolution E-4907 establishing a registration process and timeline for new and expanding CCAs. E-4907 requires a one-year period between submittal of a CCA Implementation Plan, which must occur on or before January 1st of a given year, and program launch/customer enrollment. Thus, in order for SDCP to begin serving National City's customers in. 2023, the City must adopt the required CCA ordinance by the end of October 2021. The proposed ordinance could result in local benefits including the use of renewable energy at levels above the State lenewables Portfolio Standard, the provision of competitive rates to consumers, and economic opportunity in the form of energy projects. 180 of 324 ORDINANCE NO. ORDINANCE OF THE CITY OF NATIONAL CITY ESTA.BLISHIG COMMUNITY CHOICE AGGREGATION IN TI-HE. CFI I OF NATIONAL CITY WHEREAS, Assembly Bill I 1 (Stat. 2002, ch. 838; see California Public Utilities Code section 3 . ; the "Act"), added statutes to the Public Utilities Code authorizing local governmental bodies to individually or Jointly provide retail electric commodity service to an aggregation of customers within their jurisdictions. a service referred to as Community Choice. Aggregation (CCA); and HEF EAS, the City of"National City (City) adopted a Climate Action Plan in 2011, and is in the process of updating it to align with the state mandates of 40% below 1990 levels by 2030 and 80% below 1990 levels by 050; and WHEREAS, since October 2019,, the City has been actively investigating the feasibility of commencing CCA service for electric customers within the City, with the objective: of making greater renewable electric portfolio content available to customers, providing greater local involvement over the provision of electric commodity services, and promoting competitive commodity rates: and WHEREAS, the City completed a CCA investigation which determined that a CCA program could result in local benefits including the use of renewable energy at levels above the State Renewables Portfolio Standard, the provision of competitive rates to consumers, and economic opportunity for the City; and WHEREAS. pursuant to Sections 331.1(b) and 366.2 of the Act, two or more entities authorized to be a community choice aggregator may participate jointly in a CCA program through a Joint Powers Authority established pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code, if each entity adopts the ordinance required by Public Utilities Section 3.; and WHEREAS, the City wishes to implement a CCA program at this time through Joint Powers Authority (JPA) with San Diego Community Power (SDCP); and WHEREAS, the JPA agreement with SDCP will be brought to Council for approval following the adoption of the ordinance; and WHEREAS, under Public Utilities Code Section 366.2, customers have the right to opt out of the CCA program and continue to receive bundled electric commodity service from the incumbent utility; and WHEREAS, Public Utilities Code Section 366.2(0(12) provides that an entity which elects to implement a CCA program within its jurisdiction must do so by ordinance; and 181 of 324 Ordinance No. Page No. WHEREAS, this ordinance is exempt pt from the requirements of the California Environmental Quality Act (CEQA) pursuant to the State CEQA Guidelines, as it is not a "project" and has no potential to result in a direct or reasonably foreseeable indirect physical change to the environment. ment. (14 Cal. Code Regs. § 15378(a).) Further, the ordinance is exempt from CEQA as there is no possibility that the ordinance or its implementation would have a significant negative effect on the environment. (14 Cal. Code Regs.§ 15061(b)(3).) NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofNational City, California, does ordain as follows: SECTION 1. The foregoing recitals are true and correct. SECTION 2. Based upon the findings and declarations set forth in this ordinance, and to provide businesses and residents within the jurisdictional boundaries of the City with a choice of electric commodity providers and vy itli the benefits described in the recitals above, the City Council hereby elects pursuant to Public Utilities Code Section 366.2(0(12) to implement a CCA program within the jurisdiction of the National City by participating in the CCA program. SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance or any part thereof is for any reason held to be. unconstitutional or invalid or ineffective by,, any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council of the City of National City hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs* sentences, clauses or phrases be declared unconstitutional or invalid or ineffective. SECTION No Mandatory Duty of Care. This Ordinance is not intended to and shall not be construed or given effect in a manner which imposes upon the City, or any officer or employee thereof, a mandatory duty of care towards persons or property within the City or outside of the City so as to provide a basis of civil liability for damages, except as otherwise imposed by law. SECTION 5. Conflict. All ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. SECTION 6. Effective Date. This ordinance shall be published pursuant to law and shall b 'come effective thirty (30) days from the date of passage and adoption. Within fifteen(15) days following its adoption, the City Clerk shall publish the title thereof, as a summary as required by State Law. INTRODUCED by the City Council on , ?Col. 182 of 324 PASSED AND ADOPTED by the City Council o the City. of National City, State of California, on , 2021 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Alejandra Sotelo-Solis, Mayor Attest: Luz Molina, City Clerk Approved as to Form: Charles E. Bell, Jr. City Attorney 183 of 324 The following page(s) contain the backup material for Agenda Item: Public Hearing and Introduction of an Ordinance of the City Council of the City of National City amending Sections 18.20.020, 18.21.040, 18.21.050, 18.45, and 18.50, and addition of Sections 18.30.380 and 18.30.390 of Title 18 (Zoning) of the National City Municipal Code. (Applicant City -Initiated) (Case File 2021-18 A) (Planning) Please scroll down to view the backup material. 184 of 324 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 19, 2021 AGENDA ITEM NO. ITEM TITLE: Public Hearing and Introduction of an Ordinance of the City Council of the City of National City amending Sections 18.20.020, 18.21.040, 18.21.050, 18.45, and 18.50, and addition of Sections 18.30.380 and 18.30.390 of Title 18 (Zoning) of the National City Municipal Code. (Applicant City -Initiated) (Case File 2021- 18 A) PREPARED BY: David Welch PHONE: 619-336-4224 DEPARTMENT: Community Development APPROVED BY: EXPLANATION: Accessory Dwelling Units (ADUs) are becoming more popular as a way to provide affordable rental opportunities in a time of rapidly increasing housing costs. Construction of ADUs also provide for a range of housing types and the opportunity for property owners to add income. While the City's Municipal Code does allow for second units, the Code is currently out of compliance with recent changes in state law related to ADUs. Staff has developed a new Ordinance to regulate the construction of ADUs and JADU's (Junior Accessory Dwelling Units and to provide consistency with state requirements. Both the Housing Advisory Committee and the Planning Commission provided comments on the proposed amendments and recommended approval of the changes as contained in Attachment No. 3 herein. The City Council held a public hearing on the proposed ordinance on September 7, 2021, and continued it to a later date. The attached background report describes the project in detail. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Finance MIS ENVIRONMENTAL REVIEW: This action does not constitute a project under California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(2). ORDINANCE: INTRODUCTION: X FINAL ADOPTION: STAFF RECOMMENDATION: Staff concurs with the Planning Commission's recommendation and recommends that the amendments and additions to Title 18 be introduced. BOARD / COMMISSION RECOMMENDATION: The Planning Commission recommended approval of the Land Use Code amendments. Ayes: Dela Paz, Roman, Sendt, Valenzuela, Yamane Absent: Natividad, Sanchez, ATTACHMENTS: 1. Background report 2. Findings 3. Proposed Code changes 4. Public Hearing Notice 5. Planning Commission Resolution 2021-07 6. Draft PowerPoint presentation 7. Ordinance 185 of 324 BACKGROUND REPORT Staff Recommendation Staff recommends that the City Council recommend approval of the amendments to sections 18.20.020, 18.21.040, 18.21.050, 18.45, and 18.50, and addition of sections 18.30.380 and 18.30.390 of the Land Use Code (LUC). The Planning Commission held a public hearing on the proposed amendments and recommended approval of the changes as contained in the attached proposed Code changes. Overview California's housing production is not keeping pace with demand. In the last decade, less than half of the homes needed to keep up with the population growth were built. This lack of housing that meets the community's needs is impacting affordability and causing average housing costs, particularly for renters in California, to rise significantly. As affordable housing becomes Tess accessible, people drive longer distances between housing they can afford and their workplace or pack themselves into smaller shared spaces, both of which reduce quality of life and produce negative environmental impacts. Beyond traditional construction, widening the range of housing types can increase the housing supply and help more low-income Californians thrive. An ADU (Accessory Dwelling Unit) is a complete independent living facility for one or more persons and has a few variations: • Detached: The unit is separated from the primary structure. • Attached: The unit is attached to the primary structure. • Converted Existing Space: Space (e.g., master bedroom, attached garage, storage area, or similar use, or an accessory structure) on the lot of the primary residence that is converted into an independent living unit. • Junior Accessory Dwelling Unit (JADU): A specific type of conversion of existing space that is contained entirely within an existing or proposed single-family residence. In addition to expanding housing options for National City Residents, a robust ADU Ordinance will help the City to meet its RHNA (Regional Housing Needs Assessment) allocation (5,437). The Ordinance will also be consistent with the goals and policies of the City's Housing Element, which is currently being updated, including creating additional consistency with state ADU regulations. ATTACHMENT 1 186 of 324 Section 18.21.050 of the LUC regulates second units, which are also referred to as Accessory Dwelling Units (ADUs). This section of the LUC is null and void after recent updates to the State of California Government Code (GOV) relating to ADUs and Junior Accessory Dwelling Units (JADUs) became effective on January 1, 2021. ADUs and JADUs in the City of National City are regulated by the requirements in GOV Sections 65852.2 and 65852.22 unless the City adopts an ordinance that complies with each section. Sections 18.30.380 and 18.30.390, as well as related changes within Title 18, are proposed for the regulation of ADUs and JADUs. These ordinance changes are intended to clarify the regulations that permit ADUs and JADUs as well as promote the compatibility of these housing types within existing neighborhoods. It should also be noted that Planning Division staff is concurrently working on a draft ordinance related to Mobile Tiny Homes per direction of the City Council. While not part of the current effort related to ADUs and JADUs, the Council may still provide comments if appropriate. Housing Advisory Committee On July 19, 2021, an update on the draft code amendments and additions related to ADUs and JADUs was presented to the Housing Advisory Committee. Staff received several comments related to the proposed language and made some modifications. The following comments were received and addressed: • A one-story requirement for ADUs would be overly restrictive for smaller lots. An example is a 3,000 square foot lot only having enough area to construct a 300 square foot ADU. o Staff added language to allow two-story ADUs for lots smaller than 5,000 square feet. In addition, proposed language was added to Table 18.21.040 of the LUC to address conflicts with ADU square footage and the standards for accessory structures. • Is there any enforcement of rental duration to keep ADUs from becoming short- term rentals? o Staff added language requiring recorded restrictions for all ADUs. The restrictions must state that the ADU may not be rented for a period of less than 31 days. • The City should review the minimizing setbacks (overly restrictive) including the 20 foot front setback for ADUs. o Staff revised the required front setback to a 15 foot minimum instead of 20 feet. This is consistent with the current front setbacks for medium density residential zones. 2 187 of 324 • Can the landscaping requirement allow for a tree in the back or elsewhere? o Staff revised the location requirement to allow for a tree in the abutting parkway and the required 15 foot front yard setback for ADUs. This provides more flexibility in mixed -use zones, which do not have a front setback area. Planning Commission held a public hearing on August 16, 2021 and recommended approval to the City Council of the amendments. City Council On September 7, 2021, a public hearing was held for the introduction of the proposed code amendments and additions to Title 18 (Zoning) of the National City Municipal Code. At this hearing the City Council continued the hearing to a later date and requested additional information from staff including the following: • Recommendations for promoting the affordability of ADUs and JADUs created under the new ordinance • Information on fees related to the construction of ADUs and JADUs and the use of fee waivers by other jurisdictions • An explanation on how ADUs can be used to meet the City's RHNA allocation • Clarification on which sections of the proposed code amendments and additions are changes from the regulation mandated by state law Staff will incorporate the requested information into the presentation of this item at the public hearing. In addition, clarifications on state law and the proposed changes can be found in the following section. Proposed Changes and State Mandates With the most recent updates to the State of California Government Code relating to ADUs and JADUs, the City has limitations on how it can regulate these types of uses. Within the state law, cities are able to impose standards on ADUs that include, but are not limited to, parking, height, setbacks, landscaping, architectural review, maximum unit size, and standard intended to prevent adverse impacts to historical resources. Cities are also allowed to establish requirements for ADUs that are less restrictive than what is required by the state. This section will address areas where the City has proposed changes that deviate from the current regulation of ADUs and JADUs under state law. Changes to Title 18 that are not highlighted in this section are either mandated by the state to be included in an ADU ordinance or are intended to clean up existing code sections for compatibility. 3 188 of 324 The overall changes that are proposed include deleting Section 18.21.050 of the LUC, which is preempted by GOV Sections 65852.2 and 65852.22, deleting other sections of Title 18 with references to second units, new ordinances under Sections 18.30.380 related to ADUs and 18.30.390 related to JADUs, and other changes to Title 18 that are related to these new sections. These ordinance changes are intended to clarify the regulations that permit ADUs and JADUs as well as promote the compatibility of these housing types within existing neighborhoods. The following are the proposed changes that deviate from the regulations mandated by state law as well as some clarifications on what regulations are permitted. • The maximum size of a detached ADU on a single-family property has been reduced from 1,200 to 1,000 square feet. Cities may not impose a maximum size that is smaller than 1,000 square feet for an ADU with two or more bedrooms. • The maximum size of a detached ADU may be increased to 1,200 square feet if the ADU is constructed behind the front setback of the primary dwelling unit and parking is provided for both units. • The maximum size of a detached multi -family residential ADU has been reduced from 1,200 to 1,000 square feet. • No parking requirement for ADUs is proposed other than for the bonus square footage described above. State law would only allow the city to require parking on a small number of lots in the city due to the existence of transit lines in most areas. • ADUs constructed over garages or on a lot smaller than 5,000 square feet are permitted to have a maximum height of twenty-five feet instead of the height of the primary structure. No other changes to height regulations for ADUs are proposed. • A minimum front setback of fifteen feet and minimum side and rear setbacks of four feet for all ADUs is required. ADUs are permitted in Mixed -Use zones, which currently have no setbacks in the City's code unless they abut a residential zone. The side and rear setbacks are mandated by the state. • A landscape requirement of one tree in the required 15 foot setback for ADUs or abutting parkway is added. There are no landscape requirements mandated by the state. • ADUs are required to conform to the adopted single-family infill standards in Section 18.42.070.0 of the LUC. Building design standards are not mandated by the state. Subjective requirements are not allowed. • An ADU constructed within the footprint of an existing home will not have a maximum size. This clarifies staff's interpretation of state law. 4 189 of 324 • Both ADUs and JADUs shall have restrictions, recorded with the County, that the units may not be sold separately or rented for periods of less than 31 days. This clarifies that all ADUs require a recorded restriction. • JADUs are permitted on lots with an existing single-family dwelling and zoned to allow for residential use. This change will clarify that JADUs are permitted in Mixed -Use zones. • Replacement parking can be required when a JADU is created within an existing attached garage. This is an optional parking requirement permitted by the state. A strikethrough/underline version of the changes are attached to this staff report. Findings There are two findings required for approval of a Code Amendment, one related to General Plan consistency and one related to compliance with the California Environmental Quality Act (CEQA). General Plan Conformance The requested amendments to this section are consistent with the General Plan. The adopted 2013-2021 Housing Element provides both for enhanced quality of existing residential neighborhoods and a range of new housing types. Two goals apply in this case: Goal H-1: Maintain and enhance the quality of existing residential neighborhoods. Goal H-4: Provide a sufficient number of housing units and range of housing types to meet the current and projected needs of all economic segments of the community. In addition, the draft Housing Element for the 2021-2029 cycle is required by GOV Section 65852.2 to promote the development of ADUs to meet housing needs. Draft Policy 1.4 is to "promote the development of accessory dwelling units (ADUs) throughout National City to meet residential housing needs." CEQA Compliance This amendment is not considered to be a project under CEQA as any permits issued in relation to ADUs and JADUs would be ministerial and thus not subject to CEQA. Summary and next steps The proposed amendments are required both to rectify existing inconsistencies between the Municipal Code and state law, and to bring the City's Land Use Code into compliance with state law in general. Both the Housing Advisory Committee and the 5 190 of 324 Planning Commission recommended approval to the City Council of the changes to the City's Municipal Code related to ADUs and JADUs. Staff is also recommending approval of the changes. OPTIONS 1. Introduce the Ordinance approving the amendments to Sections 18.20.020, 18.21.040, 18.21.050, 18.45, and 18.50, and addition of Sections 18.30.380 and 18.30.390 of the Land Use Code based on the attached findings or findings to be determined by the City Council; or 2. Continue the item to a specific date for additional information. 3. File the report (deny the amendments) 6 191 of 324 RECOMMENDED FINDINGS FOR APPROVAL 1 That the proposed amendments to Sections 18.20.020, 18.21.040, 18.21.050, 18.45, and 18.50, and addition of Sections 18.30.380 and 18.30.390 are consistent with the General Plan, as Goal H-1 encourages the maintenance and enhancement of the quality of existing residential neighborhoods and Goal H-4 encourages the provision of a sufficient number of housing units and range of housing types to meet the current and projected needs of all economic segments of the community. 2. That the proposed amendments have been reviewed and been found to comply with the California Environmental Quality Act (CEQA); the amendments are not considered to be a project under CEQA. Any permits issued in relation to Accessory Dwelling Units (ADUs) or Junior Accessory Dwelling Units (JADUs) would be ministerial and thus not subject to CEQA. ATTACHMENT 2 7 192 of 324 Deletions shown as Strikethrough Additions shown as Underline Table 18.20.020 — Allowed Uses Residential Zones. Zone Classification Symbol Zone Classification General Plan Land Use Designation Residential RS-11 Large Lot Residential Low Medium Density Residential RS-21 Small Lot Residential Low Medium Density Residential RS-31 Medium -Low Density Multi -Unit Residential Medium Density Residential RS-41 Residential Single -Family Specific Plan (Westside) RM-11 Medium Density Multi -Unit Residential Medium Density Residential RM-21 High Density Multi -Unit Residential High Density Residential RM-31 Very High Density Multi -Unit Residential High Density Residential Commercial CA Commercial Automotive Commercial Automotive CL Limited Commercial Specific Plan (Westside) CS Service Commercial Service Commercial Mixed -Use MCR-1I Mixed Commercial -Residential Specific Plan (Westside) ATTACHMENT 3 8 193 of 324 Zone Classification Symbol Zone Classification General Plan Land Use Designation MCR-2, Mixed Commercial -Residential (Smart Growth Area) Specific Plan (Westside) MXC-11 Minor Mixed Use Corridor Minor Mixed Use MXC-21 Major Mixed Use Corridor Major Mixed Use MXD-11 Minor Mixed Use District Minor Mixed Use MXD-21 Major Mixed Use District Major Mixed Use Industrial IL Light Industrial Industrial IM Medium Industrial Industrial IH Heavy Industrial Industrial Institutional I Institutional Institutional Open Space OS Open Space Open Space ()SR Open Space Reserve Military M Military Military San Diego Unified Port District UPD Port Master Plan San Diego Unified Port District Specific Plan 9 194 of 324 Zone Classification Symbol Zone Classification General Plan Land Use Designation SP! Specific Plan Specific Plan JADUs and JADUs permitted subject to Sections 18.30.380 and 18.30.390 Table 18.21.040 — Development Standards Residential Zones Development Requirement By Zoning District RS-1 RS-2 RS-3 RS-4 RM-1 RM-2 RM-3 Minimum setbacks, Primary structure Front 20' 20' 15' 10'/ 15(a) 15' 10' 10' Side —Interior 5' 5' 5' 3/0(b) 5' 5' 5' Side —Exterior 10' 10' 5' 10'(a) 5' 5' 10' Rear 25' 25' 10' 15' 5' 5' 5' Minimum setbacks, Accessory structure Front 20' 20' 15' 10/ 15'(c) 15' 10' 10' Side —Interior 5' 5' 5' 3' 5' 5' 5' Side —Corner 5' 5' 5' 10' 5' 5' 5' 10 195 of 324 Development Requirement By Zoning District RS-1 RS-2 RS-3 RS-4 RM-1 RM-2 RM-3 Rear 5' 5' 5' 3' 5' 5' 5' Detached building separation 5' 5' 5' 6' 5' 5' 5' Number of detached buildings 3 per full 5,000 ft 2 of lot area 3 per full 5,000 ft2of lot area 3 per full 5,000 ft2of lot area 3 Minimum lot area 10,000 SF 5,000 SF 5,000 SF 2,500 SF 5,000 SF 5,000 SF 5,000 SF Minimum street frontage (Standard) 60' 50' 50' 25' 50' 50' 50' Minimum street frontage (lots on the bulb of a cul-de- sac) 36' 36' 36' 15' 36' 36' 36' Maximum density One du per lot One du per lot One du per 2,900 SF of lot area One du for each 2,500 SF of lot area One du per 1,900 SF of lot area One du per 900 SF of lot area One du per 580 SF of lot area Minimum usable open space N/A N/A N/A N/A See Section 18.41.040 11 196 of 324 Development Requirement By Zoning District RS-1 RS-2 RS-3 RS-4 RM-1 RM-2 RM-3 Maximum lot coverage 75% 75% 75% N/A 75% 75% 75% Maximum height, primary structure 35' 35' 35' 35' 45' 65' 95' Maximum stories, primary structure 2 2 3 3 4 6 9 Maximum height, accessory structure 35' 35' 35' 35' 45' 65' 95' Shall not exceed the number of stories or height of the primary structure. Shall not exceed the allowed maximum height of accessory structures in adjacent zone within 100-feet of the adjacent zone. Maximum area (total), accessory structures— Excluding up to 400 SF of covered parking and area dedicated to an ADU 10% of lot size (d) 10% of lot size (d) 10% of lot size (d) None None None None Notes: (a) Stoops and porches may extend into the front yard up to the front property line or in the case of a corner parcel, to the side property line. Garages shall maintain a fifteen -foot front yard setback. (b) A zero foot minimum side yard, for one side yard on the parcel, is permitted provided that there is a six-foot separation to the adjacent residential structure and that there is a minimum three-foot side yard setback on the opposite side. (c) Except for stoops and porches, accessory structures shall not be located in the front yard setback. Porches or stoops should be at least six feet deep. (d) No single accessory structure shall have a footprint greater than that of half of the primary structure excluding area dedicated to an ADU. 12 197 of 324 18.21.050 - Second units. accessory dwelling unity in the residential zones. Accessory dwelling unity help advance the city's growth and planning policies by: 1. Accommodating new housing units while preserving the character of existing neighborhoods; 2. Allowing efficient use of the city's existing housing stock and infrastructure; 3. Providing housing options and choices that respond to varying income levels, changing household sizes and lifestyle needs• and , , singles and younger couples, and cmpty ncstc c +„ remain i„ +heir homes and assistance. B. Development Standards. constructed in conjunction with a single-family residence 2. Shall not be allowed where the city manager or his/her designee determines that roadways, public utilities or services are inadequate; 3. Shall not be allowed on Tots that exceed the allowed number of dwelling units; A. The development standards for accessory structures shall apply to second units, except that the setback requirements for primary structures shall apply and the in no case shall exceed one thousand two hundred square feet. C. Architectural Compatibility. A second dwelling unit shall incorporate the same or substantially similar architectural features with respect to roof pitch, compatible building materials, colors, and design details of the primary dwelling unit. D. Parking. One off street parking space, in addition to that which is rcquircd by this code for 18.30.380 - Accessory Dwelling Units. A. Purpose. The purpose of this section is to provide for the construction of Accessory Dwelling Units (ADUs) in areas zoned to allow residential uses pursuant to Government 13 198 of 324 Code Section 65852.2. ADUs help advance the goals and policies of the City's Housing Element by: 1. Providing an affordable type of home to construct without the cost of acquiring new land, dedicated parking, and costly infrastructure; 2. Accommodating new housing units while preserving the character of existing neighborhoods; 3. Allowing efficient use of the city's existing housing stock and infrastructure; 4. Providing housing options and choices that respond to varying income levels, changing household sizes and lifestyle needs; and, 5. Providing a means for residents —particularly seniors, single parents, young singles, and younger couples —to remain in their homes and neighborhoods, and obtain and preserve income, security, companionship, and assistance. B. Consistency with state law. This section is intended to be consistent with Government Code Section 65852.2. If inconsistency is found with this section and state law, state law shall prevail. C. Definitions. For the purposes of this section Accessory Dwelling Unit (ADU) is defined in Section 18.50.010. D. ADUs permitted. 1. One ADU is permitted on a lot if all the following are met: a.The lot includes a proposed or existing dwelling. b.The lot is in a zone that allows for a residential use as indicated in Table 18.20.020. c.The proposed ADU is located where the city manager or his/her designee has not determined that public utilities or services are inadequate or the ADU will adversely impact traffic flow or public safety. d.The ADU meets the standards of subsection F. 2. Two detached ADUs are permitted on a lot with a multi -family residential use if all the following are met: a.The lot includes an existing multi -family residential dwelling. b.Each ADU does not exceed a total floor area of 1,000 square feet and 16 feet in height. 3. Multiple ADUs are permitted within the portions of existing multi -family residential structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings. 14 199 of 324 a.At least one ADU is permitted within an existing multi -family residential structures and up to 25 percent of the existing number of multi -family dwelling units is allowed. E. Review. The approval of an ADU is subject to a ministerial decision process outlined in Section 18.12.030. For the purposes of this subsection, a staff person designated by the city manager shall review and act on a building permit application for an ADU within 60 days after a complete application is received. An ADU proposed with a permit application for a new primary dwelling shall not be approved until the primary dwelling receives approval. An applicant may request a variance subject to Section 18.12.120 in conjunction with an application for an ADU. F. ADU Development Standards. 1. Density. ADUs are consistent with the allowable density for the lot upon which the ADU is located and the ADU is a residential use that is consistent with existing General Plan and zoning designations for the lot. 2. Location. An ADU may be either attached to, or located within, the proposed or existing primary dwelling, including attached garages, storage areas, or an accessory structure or detached from the proposed or existing primary dwelling and located on the same lot as the proposed or existing dwelling. An ADU may be attached to, located within, or detached from an existing or proposed primary dwelling unit, including garages and habitable or non -habitable accessory structures. 3. Parking. No additional parking is required for an ADU. If an ADU is constructed within existing garage or covered parking, then no replacement parking spaces may be required. 4. Height. The maximum height of an ADU is as follows: a.On a property with a single-family residential primary dwelling, the height of the ADU, attached or detached, shall not exceed the height of the primary dwelling or 16 feet, whichever is greater. For an ADU constructed above a garage or on a lot smaller than 5,000 square feet, the height shall not exceed 25 feet. b.On a property with a multi -family residential structure, the height of a detached ADU shall not exceed 16 feet. 5. Setbacks. a.For all ADUs, the front setback shall be a minimum of 15 feet. b.For all ADUs, the exterior and interior side yard setback shall be a minimum of four feet and the rear yard setback shall be a minimum of four feet. 15 200 of 324 c.No setback shall be required for an existing living area or permitted accessory structure or a structure constructed in the same location and to the same dimensions as an existing structure that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit, and a setback of no more than four feet from the side and rear lot lines shall be required for an accessory dwelling unit that is not converted from an existing structure or a new structure constructed in the same location and to the same dimensions as an existing structure. 6. Landscaping. a.One 24-inch box tree shall be planted within the required 15 foot front yard setback for ADUs or in the abutting parkway. Existing trees that are at least 15 feet high and 15 feet in width may be used to satisfy this requirement. 7. Building Design Standards. ADUs shall conform to adopted single-family infill standards in Section 18.42.070.C. 8. Size of unit. a.The minimum size of an ADU is a total floor area of 150 square feet. b.The total floor area of an ADU attached to a primary dwelling unit shall not exceed 50% of the total floor area of the existing primary dwelling or 1,000 square feet, whichever is greater, save and except (d) and (e) below. c.The total floor area of a detached ADU shall not exceed 1,000 square feet save and except (d) and (e) below. d.A detached ADU may have a total floor area up to 1,200 square feet if all the following requirements are met: 1. The front setback of the ADU exceeds the front setback of the existing or proposed primary dwelling unit. 2. No existing parking spaces are removed or the existing spaces are replaced with covered parking. 3. One additional parking space is provided for the ADU. e.An ADU constructed within the footprint of an existing dwelling or a detached structure shall not be subject to a maximum square footage of total floor area. f. As provided in state law, an attached or detached ADU with a maximum size of 850 square feet or 1,000 square feet with more than one bedroom shall be permitted in any circumstance subject to a maximum height of 16 feet, four foot side and rear setbacks, and compliance with all building codes. 16 201 of 324 9. A minimum lot size shall not be required for an ADU under this ordinance. 10. No passageway shall be required for an ADU under this ordinance. 11. ADUs are only required to provide fire sprinklers if they are required for the primary residence. G. Limitations and other requirements 1. An ADU shall not be sold or otherwise conveyed separate from the primary residence. 2. An ADU may serve as a rental unit or be occupied by family members, guests, or in -home health care providers and others at no cost. 3. Neither the ADU nor the primary dwelling unit shall be rented for a term of Tess than 31 days. ADUs on multi -family properties shall be subject to this provision, except the restriction shall not apply to existing multi -family units. 4. Owner occupancy of the primary unit or ADU is not required. 5. Trash and recycling. Receptacles are required and shall conform to the requirements of Section 7.10.040 of the Code of Ordinances. 6. Prohibited units. No structure of a temporary nature shall be used as a residence or ADU, neither temporarily nor permanently. Refer to Section 18.20.030.A. 7. Fees. An ADU with less than 750 square feet is exempt from any impact fees imposed by the city. For ADUs 750 square feet or more, impact fees shall be charged proportionately in relation to the square footage of the primary dwelling unit. 8. Before a building permit may be issued for an ADU, the record owner shall enter into an agreement with the City in a form that is approved by the City Attorney. The agreement shall include the following provisions: the ADU may not be sold or conveyed separately from the primary dwelling unit; the agreement may be enforced against future purchasers; and the ADU may not be rented for a period of less than 31 days. The City shall submit the agreement to the County Recorder for recordation. The agreement shall run with the land for life of the ADU. H. Nonconforming zoning conditions. The correction of existing nonconforming uses, structures, or parcels pursuant to Chapter 18.11 shall not be required as a condition of approval for an ADU. 18.30.390 - Junior Accessory Dwelling Units. A. Purpose. The purpose of this section is to provide for the construction of Junior Accessory Dwelling Units (JADUs) in areas zoned to allow residential uses pursuant to Government 17 202 of 324 Code Section 65852.22. JADUs help advance the goals and policies of the City's Housing Element by: 1. Providinq an affordable type of home to construct without the cost of acquiring new land, dedicated parking, and costly infrastructure; 2. Accommodating new housing units while preserving the character of existing neighborhoods; 3. Allowing efficient use of the city's existing housing stock and infrastructure; 4. Providing housing options and choices that respond to varying income levels, changing household sizes and lifestyle needs; and, 5. Providing a means for residents —particularly seniors, single parents, young singles, and younger couples —to remain in their homes and neighborhoods, and obtain and preserve income, security, companionship, and assistance. B. Consistency with state law. This section is intended to be consistent with Government Code Section 65852.22. If inconsistency is found with this section and state law, state law shall prevail. C. Definitions. For the purposes of this section junior accessory dwelling unit (JADU) is defined in Section 18.50.010. D. JADUs permitted. 1. One JADU is permitted on a lot if the following are met: a.The lot includes a proposed or existing single-family dwelling. b.The lot is in a zone that allows for a residential use as indicated in Table 18.20.020. c.The JADU meets the standards of subsection F. d.There is no existing ADU or JADU on the lot or there is an existing detached ADU that does not exceed a total floor area of 800 square feet and does not exceed a height of 16 feet. e.The proposed JADU is located where the city manager or his/her designee has not determined that public utilities or services are inadequate or the JADU will adversely impact traffic flow or public safety. E. Review. The approval of a JADU is subject to a ministerial decision process outlined in Section 18.12.030. For the purposes of this subsection, a staff person designated by the city manager shall review and act on a building permit application for a JADU within 60 days after a complete application is received. A JADU proposed with a permit application for a new primary dwelling shall not be approved until the primary dwelling receives approval. F. Development standards. 18 203 of 324 1. A JADU may have a total floor area of not less than 150 square feet and not more than 500 square feet, and is permitted within an existing or proposed single-family residential dwelling unit. A JADU constructed within an existing structure may construct an additional 150 square feet for ingress and egress only. 2. A JADU shall have a separate exterior entry from the primary dwelling unit and shall provide a kitchen or an efficiency kitchen. 3. Parking. Replacement parking spaces are required when a JADU is created within an existing attached garage. Covered spaces are not required. G. Limitations and other requirements. 1. The owner must occupy the single-family residence in which the JADU will be permitted. The owner may reside in either the remaining portion of the structure or the newly created JADU. Owner -occupancy shall not be required if the owner is another governmental agency, land trust, or housing organization. 2. Before a building permit may be issued for a JADU, the record owner shall enter into an agreement with the City in a form that is approved by the City Attorney. The agreement shall include the following provisions: the JADU may not be sold or conveyed separately from the primary dwelling unit; the agreement may be enforced against future purchasers: the JADU shall not be rented for a period of less than 31 days; and the record owner shall reside on the premises. The City shall submit the agreement to the County Recorder for recordation. The agreement shall run with the land for life of the JADU. Table 18.45.050 — Schedule of Off -Street Parking Requirements by Land Use (partial) Uses and Structures Minimum Parking Spaces Required (Unless Otherwise Specified) Residential Uses Dwelling, single detached (RS-1 zone) 2 covered spaces, plus one additional uncovered space per bedroom greater than four bedrooms or one additional uncovered space for dwellings greater than 2,500 SF, whichever is greater. 19 204 of 324 Uses and Structures Minimum Parking Spaces Required (Unless Otherwise Specified) Dwelling, single detached (all other RS and RM zones, except within the Westside Specific Plan area) One covered space and one uncovered space, plus one additional uncovered space per bedroom greater than four bedrooms or one additional uncovered space for dwellings greater than 2,500 SF, whichever is greater. Dwelling, single attached 1.5 spaces per dwelling unit in a garage or carport Dwelling, multiple 1.3 spaces per 1-bedroom dwelling unit plus 1.5 spaces per 2-bedroom or more unit, and conveniently located guest parking of 1/2 space per unit for 20 units or less, plus % space for each unit over 20. Half of the required guest parking spaces may include parking spaces on dedicated public streets along the sides of the streets that are adjacent to the site. Fraternity, sorority house, or dormitory 1.5 spaces for each sleeping room Mobile home parks 2 spaces per unit Rectory 1 garage space per bedroom Rooming or boarding house 1 space per guest room Second dwelling unit 1 space in addition to residence requirements primary parking Chapter 18.50 — GLOSSARY Second unit. "Second unit" is a small, self contained residential unit built on the same lot as an independent living facilities for one or more persons. Second units are also referred to as "accessory dwelling units," "in law apartments," "granny flats," "ancillary apartments" or 20 205 of 324 "carriage houses." Second units may be attached to or detached from the primacy -residence. Refer to Section 18.21.050 for second unit regulations. Accessory Dwelling Unit (ADU): "Accessory Dwelling Unit" means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. An ADU also includes an efficiency unit and a manufactured home, as defined in Section 18007 of the Health and Safety Code. Refer to Section 18.030.380 for ADU regulations. Junior Accessory Dwelling Unit (JADU): "Junior Accessory Dwelling Unit" means a unit that is no more than 500 square feet in size and contained entirely within a single-family residence. A JADU may include separate sanitation facilities, or may share sanitation facilities with the existing structure. Refer to Section 18.030.390 for JADU regulations. 21 206 of 324 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, October 19, 2021, via LIVE WEBCAST from the City Council Chambers, Civic Center, 1243 National City Blvd., National City, CA., to consider: INTRODUCTION OF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING SECTIONS 18.20.020 (ZONE CLASSIFICATIONS), 18.21.040 (DEVELOPMENT STANDARDS RESIDENTIAL ZONES), 18.21.050 (SECOND UNITS), 18.45 (OFF-STREET PARKING AND LOADING), AND 18.50 (GLOSSARY), AND ADDITION OF SECTIONS 18.30.380 AND 18.30.390 OF TITLE 18 (ZONING) OF THE NATIONAL CITY MUNICIPAL CODE RELATED TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS. Due to the precautions taken to combat the spread of coronavirus (COVID- 19), the City Council Chambers, are closed to the public. Anyone interested in this Public Hearing may view the City Council Meeting on the City's webpage at https://www.nationalcityca.gov/webcast Interested parties may register to speak during the City Council zoom meeting, but must register by 4:00 p.m. the day of the meeting. The City Council will also accept written public comments regarding this matter via e-mail sent to clerk(a�nationalcityca.gov. Written comments from the public (limited to a maximum of three minutes) must be submitted via e-mail by 4:00 p.m. on the day of the City Council Meeting. For information on registering to speak or on submitting written comments, please visit the City Clerk's webpage at https://www. nationalcityca.gov/government/city-clerk/public-comments. 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 via e-mail, or through written correspondence delivered to the undersigned prior to the Public Hearing. October 6, 2021 Shelley Chapel, Deputy City Clerk Published in the Star News: Friday, October 8, 2021. ATTACHMENT 4 22 207 of 324 RESOLUTION NO. 2021-07 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA, RECOMMENDING ADOPTION TO THE CITY COUNCIL OF A CODE AMENDMENT AMENDING SECTIONS 18.20.020 (ZONE CLASSIFICATIONS), 18.21.040 (DEVELOPMENT STANDARDS RESIDENTIAL ZONES), 18.21.050 (SECOND UNITS), 18.45 (OFF-STREET PARKING AND LOADING), AND 18.50 (GLOSSARY), AND ADDITION OF SECTIONS 18.30.380 AND 18.30.390 OF TITLE 18 (ZONING) OF THE NATIONAL CITY MUNICIPAL CODE. APPLICANT: CITY -INITIATED. CASE FILE NO. 2021-18 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 Title 18 (Zoning); and, WHEREAS, the Planning Commission of the City of National City, California, considered said proposed amendment at a duly advertised public hearing held on August 16, 2021 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. 2021-18 A, which is maintained by the City and incorporated herein by reference; along with any other evidence presented at said hearing; and, WHEREAS, the Planning Commission recommends adoption to the City Council of the City of National City amendment to Sections 18.20.020 (Zone Classifications), 18.21.040 (Development Standards Residential Zones), 18.21.050 (Second units), 18.45 (Off-street Parking and Loading), and 18.50 (Glossary), and addition of sections 18.30.380 and 18.30.390 of Title 18 (Zoning) of the National City Municipal Code; 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 comply 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. ATTACHMENT 5 23 208 of 324 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 hearing held on May 4, 2020, support the following findings: 1. That the proposed amendments to Sections 18.20.020, 18.21.040, 18.21.050, 18.45, and 18.50, and addition of Sections 18.30.380 and 18.30.390 are consistent with the General Plan, as Goal H-1 encourages the maintenance and enhancement of the quality of existing residential neighborhoods and Goal H-4 encourages the provision of a sufficient number of housing units and range of housing types to meet the current and projected needs of all economic segments of the community. 2. That the proposed amendments have been reviewed and been found to comply with the California Environmental Quality Act (CEQA); the amendments are not considered to be a project under CEQA. Any permits issued in relation to Accessory Dwelling Units (ADUs) or Junior Accessory Dwelling Units (JADUs) would be ministerial and thus not subject to 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 August 16, 2021, by the following vote: AYES: DelaPaz, Roman, Sendt, Valenzuela, Yamane NAYS: ABSENT: Natividad, Sanchez ABSTAIN: Lsa-e CHAIRPERS 24 209 of 324 - CALIFORNIA - NATIONAL Cay INCORPORATED Public Hearing Code Amendments of NCMC Sections 18.20.020, 18.21.040, 18.21.050, 18.45, and 18.50, and Addition of Sections 18.30.380 and 18.30.390 Related to Accessory Dwelling Units and Junior Accessory Dwelling Units Overview: • Housing production not keeping pace with demand • Lack of housing is impacting affordability and causing average housing costs to rise significantly • Widening the range of housing types can increase the housing supply and help more low-income residents thrive • In addition to expanded housing options, a robust ADU Ordinance will help the City to meet its RHNA allocation (5,437) • The Ordinance also consistent with goals and policies of the Housing Element, and with state ADU regulations ATTACHMENT 6 25 210 of 324 Overview (cont.): What is an ADU? • An ADU is a complete independent living facility for one or more persons and has a few variations: ➢ Detached: Separated from the primary structure ➢ Attached: Unit is attached to the primary structure ➢ Converted Existing Space: Space (e.g., attached garage, storage area, or accessory structure) on the lot of the primary residence that is converted into an independent living unit What is a JADU? • A JADU (Junior Accessory Dwelling Unit) is a specific type of conversion of existing space that is contained entirely within an existing or proposed single-family residence Overview (Cont.): • Current regulations related to Accessory Dwelling Units (ADUs) in Section 18.21.050 of the Land Use Code (LUC) are voided by State law Most recent updates to sections related to ADUs and Junior Accessory Dwelling Units (JADUs) took effect January 1, 2021 Approval of ADUs and JADUs in National City are currently regulated by State law unless the City adopts an ordinance in compliance to the most recent changes State law also mandates that cities should encourage ADUs • Staff also working on a draft ordinance related to Mobile Tiny Homes 26 211 of 324 Proposed Changes: Remove Section 18.21.050 of the LUC related to "Second Units" - Adopt new ordinances under Section 18.30.380 for ADUs and Section 18.30.390 for JADUs • Clean up related sections such as land uses, off-street parking, and definitions for consistency with new sections • Intention is to clarify the regulations that permit ADUs and JADUs in the City as well as promote compatibility of these housing types within existing neighborhoods. Proposed Changes (cont.): • Proposed changes for ADUs that are in addition to State requirements include: ➢ Allow ADUs to be constructed over garages ➢ Establish a minimum front setback of 15 feet and side and rear setbacks of four feet Require a tree in the front yard ADU setback or abutting parkway Require conformance with existing single-family infill standards Reduce the maximum size of most detached ADUs to 1,000 square feet. 1,200 square feet is permissible if certain requirements are met An ADU constructed within the footprint of an existing home will not have a maximum size 27 212 of 324 Proposed Changes (cont.): 7. Proposed changes for JADUs that are in addition to State requirements include: Permitting JADUs on lots with an existing single-family dwelling that are zoned to allow residential use. This will clarify that JADUs are permitted in Mixed -Use zones. Findings: General Plan Conformance 7. Consistent with current Housing Element Goal H-1: Maintain and enhance the quality of existing residential neighborhoods Goal H-4: Provide a sufficient number of housing units and range of housing types to meet the current and projected needs of all economic segments of the community. p. Consistent with draft Housing Element for next cycle Policy 1.4: Promote the development of accessory dwelling units (ADUs) throughout National City to meet residential housing needs. CEQA Compliance p. Amendments not considered a project under CEQA 28 213 of 324 Public Comment: Comments were received from a property owner asking that 2-story ADUs be permitted in cases of an existing single -story home The existing and proposed language generally requires ADUs to match design of primary dwelling (e.g. number of stories, roof pitch, etc.) p. Proposed Ordinance allows 2-story ADUs on lots with single -story primary residence for lots < 5,000 ft2 Property owner still wishes to construct 2-story's, regardless of lot size Summary / Next Steps: Adoption of Ordinance Staff will prepare an ADU policy handbook to guide property owners on the ADU/JADU process: Building permits Fire Department requirements y Utility questions (gas/electric, water, sewer) Publish information on City website 29 214 of 324 Options: Introduce the Ordinance approving the amendments to Sections 18.20.020, 18.21.040, 18.21.050, 18.45, and 18.50, and addition of Sections 18.30.380 and 18.30.390 of the Land Use Code based on the attached findings or findings to be determined by the City Council; or Continue the item to a specific date. File the report (Deny amendments) 30 215 of 324 ORDINANCE NO. 2021 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING SECTIONS 18.20.020 (ZONE CLASSIFICATIONS), 18.21.040 (DEVELOPMENT STANDARDS RESIDENTIAL ZONES), 18.21.050 (SECOND UNITS), 18.45 (OFF-STREET PARKING AND LOADING), AND 18.50 (GLOSSARY), AND ADDITION OF SECTIONS 18.30.380 AND 18.30.390 OF TITLE 18 (ZONING) OF THE NATIONAL CITY MUNICIPAL CODE. 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 August 16, 2021, a noticed public hearing was 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 the adoption of said ordinance, a public hearing was held by the City Council on September 7, 2021, 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 of the City of National City does ordain as follows: Section 1. All protests, if any, against said amendment to the Municipal Code and each of them be and hereby are denied and overruled. Section 2. Table 18.20.020 (Allowed Uses Residential Zones) is hereby amended to read as follows: Zone Classification Symbol Zone Classification General Plan Land Use Designation Residential RS-11 Large Lot Residential Low Medium Density Residential ATTACHMENT 7 31 216 of 324 Zone Classification Symbol Zone Classification General Plan Land Use Designation RS-21 Small Lot Residential Low Medium Density Residential RS-31 Medium -Low Density Multi -Unit Residential Medium Density Residential RS-41 Residential Single -Family Specific Plan (Westside) RM-11 Medium Density Multi -Unit Residential Medium Density Residential RM-21 High Density Multi -Unit Residential High Density Residential RM-31 Very High Density Multi -Unit Residential High Density Residential Commercial CA Commercial Automotive Commercial Automotive CL Limited Commercial Specific Plan (Westside) CS Service Commercial Service Commercial Mixed -Use MCR-11 Mixed Commercial -Residential Specific Plan (Westside) MCR-21 Mixed Commercial -Residential (Smart Growth Area) Specific Plan (Westside) MXC-1 1 Minor Mixed Use Corridor Minor Mixed Use MXC-21 Major Mixed Use Corridor Major Mixed Use MXD-11 Minor Mixed Use District Minor Mixed Use Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 32 217 of 324 Zone Classification Symbol Zone Classification General Plan Land Use Designation MXD-21 Major Mixed Use District Major Mixed Use Industrial IL Light Industrial Industrial IM Medium Industrial Industrial IH Heavy Industrial Industrial Institutional I Institutional Institutional Open Space OS Open Space Open Space OSR Open Space Reserve Military M Military Military San Diego Unified Port District UPD Port Master Plan San Diego Unified Port District Specific Plan SP1 Specific Plan Specific Plan 1ADUs and JADUs permitted subject to Sections 18.30.380 and 18.30.390 Section 3. Table 18.21.040 (Development Standards Residential Zones) is hereby amended to read as follows: Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 33 218 of 324 Development Requirement By Zoning District RS-1 RS-2 RS-3 RS-4 RM-1 RM-2 RM-3 Minimum setbacks, Primary structure Front 20' 20' 15' 10'/ 15(a) 15' 10' 10' Side —Interior 5' 5' 5' 3/0(b) 5' 5' 5' Side —Exterior 10' 10' 5' 10'(a) 5' 5' 10' Rear 25' 25' 10' 15' 5' 5' 5' Minimum setbacks, Accessory structure Front 20' 20' 15' 10/ 15'(c) 15' 10' 10' Side —Interior 5' 5' 5' 3' 5' 5' 5' Side —Corner 5' 5' 5' 10' 5' 5' 5' Rear 5' 5' 5' 3' 5' 5' 5' Detached building separation 5' 5' 5' 6' 5' 5' 5' Number of detached buildings 3 per full 5,000 ft 2 of lot area 3 per full 5,000 ft 2 of lot area 3 per full 5,000 ft 2 of lot area 3 Minimum lot area 10,000 SF 5,000 SF 5,000 SF 2,500 SF 5,000 SF 5,000 SF 5,000 SF Minimum street frontage (Standard) 60' 50' 50' 25' 50' 50' 50' Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 34 219 of 324 Development Requirement By Zoning District RS-1 RS-2 RS-3 RS-4 RM-1 RM-2 RM-3 Minimum street frontage (lots on the bulb of a cul-de-sac) 36' 36' 36' 15' 36' 36' 36' Maximum density One du per lot One du per lot One du per 2,900 SF of lot area One du for each 2,500 SF of lot area One du per 1,900 SF of lot area One du per 900 SF of lot area One du per 580 SF of lot area Minimum usable open space N/A N/A N/A N/A See Section 18.41.040 Maximum lot coverage 75% 75% 75% N/A 75% 75% 75% Maximum height, primary structure 35' 35' 35' 35' 45' 65' 95' Maximum stories, primary structure 2 2 3 3 4 6 9 Maximum height, accessory structure 35' 35' 35' 35' 45' 65' 95' Shall not exceed the number of stories or height of the primary structure. Shall not exceed the allowed maximum height of accessory structures in adjacent zone within 100- feet of the adjacent zone. Maximum area (total), accessory structures— Excluding up to 400 SF of covered parking and area dedicated to an ADU 10% of lot size (d) 10% of lot size (d) 10% of lot size (d) None None None None Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 35 220 of 324 Notes: (a) Stoops and porches may extend into the front yard up to the front property line or in the case of a corner parcel, to the side property line. Garages shall maintain a fifteen -foot front yard setback. (b) A zero foot minimum side yard, for one side yard on the parcel, is permitted provided that there is a six-foot separation to the adjacent residential structure and that there is a minimum three-foot side yard setback on the opposite side. (c) Except for stoops and porches, accessory structures shall not be located in the front yard setback. Porches or stoops should be at least six feet deep. (d) No single accessory structure shall have a footprint greater than that of half of the primary structure excluding area dedicated to an ADU. Section 4. Section 18.21.050 (Second units) is hereby repealed. Section 5. Section 18.30.380 is hereby added to read as follows: 18.30.380 - Accessory Dwelling Units. A. Purpose. The purpose of this section is to provide for the construction of Accessory Dwelling Units (ADUs) in areas zoned to allow residential uses pursuant to Government Code Section 65852.2. ADUs help advance the goals and policies of the City's Housing Element by: 1. Providing an affordable type of home to construct without the cost of acquiring new land, dedicated parking, and costly infrastructure; 2. Accommodating new housing units while preserving the character of existing neighborhoods; 3. Allowing efficient use of the city's existing housing stock and infrastructure; 4. Providing housing options and choices that respond to varying income levels, changing household sizes and lifestyle needs; and, 5. Providing a means for residents —particularly seniors, single parents, young singles, and younger couples —to remain in their homes and Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 36 221 of 324 neighborhoods, and obtain and preserve income, security, companionship, and assistance. B. Consistency with state law. This section is intended to be consistent with Government Code Section 65852.2. If inconsistency is found with this section and state law, state law shall prevail. C. Definitions. For the purposes of this section Accessory Dwelling Unit (ADU) is defined in Section 18.50.010. D. ADUs permitted. 1. One ADU is permitted on a lot if all the following are met: a. The lot includes a proposed or existing dwelling. b. The lot is in a zone that allows for a residential use as indicated in Table 18.20.020. c. The proposed ADU is located where the city manager or his/her designee has not determined that public utilities or services are inadequate or the ADU will adversely impact traffic flow or public safety. d. The ADU meets the standards of subsection F. 2. Two detached ADUs are permitted on a lot with a multi -family residential use if all the following are met: a. The lot includes an existing multi -family residential dwelling. b. Each ADU does not exceed a total floor area of 1,000 square feet and 16 feet in height. 3. Multiple ADUs are permitted within the portions of existing multi -family residential structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with state building standards for dwellings. a. At least one ADU is permitted within an existing multi -family residential structures and up to 25 percent of the existing number of multi -family dwelling units is allowed. Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 37 222 of 324 E. Review. The approval of an ADU is subject to a ministerial decision process outlined in Section 18.12.030. For the purposes of this subsection, a staff person designated by the city manager shall review and act on a building permit application for an ADU within 60 days after a complete application is received. An ADU proposed with a permit application for a new primary dwelling shall not be approved until the primary dwelling receives approval. An applicant may request a variance subject to Section 18.12.120 in conjunction with an application for an ADU. F. ADU Development Standards. 1. Density. ADUs are consistent with the allowable density for the lot upon which the ADU is located and the ADU is a residential use that is consistent with existing General Plan and zoning designations for the lot. 2. Location. An ADU may be either attached to, or located within, the proposed or existing primary dwelling, including attached garages, storage areas, or an accessory structure or detached from the proposed or existing primary dwelling and located on the same lot as the proposed or existing dwelling. An ADU may be attached to, located within, or detached from an existing or proposed primary dwelling unit, including garages and habitable or non -habitable accessory structures. 3. Parking. No additional parking is required for an ADU. If an ADU is constructed within existing garage or covered parking, then no replacement parking spaces may be required. 4. Height. The maximum height of an ADU is as follows: a. On a property with a single-family residential primary dwelling, the height of the ADU, attached or detached, shall not exceed the height of the primary dwelling or 16 feet, whichever is greater. For an ADU constructed above a garage or on a lot smaller than 5,000 square feet, the height shall not exceed 25 feet. Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 38 223 of 324 b. On a property with a multi -family residential structure, the height of a detached ADU shall not exceed 16 feet. 5. Setbacks. a. For all ADUs, the front setback shall be a minimum of 15 feet. b. For all ADUs, the exterior and interior side yard setback shall be a minimum of four feet and the rear yard setback shall be a minimum of four feet. c. No setback shall be required for an existing living area or permitted accessory structure or a structure constructed in the same location and to the same dimensions as an existing structure that is converted to an accessory dwelling unit or to a portion of an accessory dwelling unit, and a setback of no more than four feet from the side and rear lot lines shall be required for an accessory dwelling unit that is not converted from an existing structure or a new structure constructed in the same location and to the same dimensions as an existing structure. 6. Landscaping. a. One 24-inch box tree shall be planted within the required 15 foot front yard setback for ADUs or in the abutting parkway. Existing trees that are at least 15 feet high and 15 feet in width may be used to satisfy this requirement. 7. Building Design Standards. ADUs shall conform to adopted single-family infill standards in Section 18.42.070.C. 8. Size of unit. a. The minimum size of an ADU is a total floor area of 150 square feet. b. The total floor area of an ADU attached to a primary dwelling unit shall not exceed 50% of the total floor area of the Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 39 224 of 324 existing primary dwelling or 1,000 square feet, whichever is greater, save and except (d) and (e) below. c. The total floor area of a detached ADU shall not exceed 1,000 square feet save and except (d) and (e) below. d. A detached ADU may have a total floor area up to 1,200 square feet if all the following requirements are met: 1. The front setback of the ADU exceeds the front setback of the existing or proposed primary dwelling unit. 2. No existing parking spaces are removed or the existing spaces are replaced with covered parking. 3. One additional parking space is provided for the ADU. e. An ADU constructed within the footprint of an existing dwelling or a detached structure shall not be subject to a maximum square footage of total floor area. f. As provided in state law, an attached or detached ADU with a maximum size of 850 square feet or 1,000 square feet with more than one bedroom shall be permitted in any circumstance subject to a maximum height of 16 feet, four foot side and rear setbacks, and compliance with all building codes. 9. A minimum lot size shall not be required for an ADU under this ordinance. 10.No passageway shall be required for an ADU under this ordinance. 11.ADUs are only required to provide fire sprinklers if they are required for the primary residence. G. Limitations and other requirements 1. An ADU shall not be sold or otherwise conveyed separate from the primary residence. 2. An ADU may serve as a rental unit or be occupied by family members, guests, or in -home health care providers and others at no cost. Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 40 225 of 324 3. Neither the ADU nor the primary dwelling unit shall be rented for a term of less than 31 days. ADUs on multi -family properties shall be subject to this provision, except the restriction shall not apply to existing multi- family units. 4. Owner occupancy of the primary unit or ADU is not required. 5. Trash and recycling. Receptacles are required and shall conform to the requirements of Section 7.10.040 of the Code of Ordinances. 6. Prohibited units. No structure of a temporary nature shall be used as a residence or ADU, neither temporarily nor permanently. Refer to Section 18.20.030.A. 7. Fees. An ADU with less than 750 square feet is exempt from any impact fees imposed by the city. For ADUs 750 square feet or more, impact fees shall be charged proportionately in relation to the square footage of the primary dwelling unit. 8. Before a building permit may be issued for an ADU, the record owner shall enter into an agreement with the City in a form that is approved by the City Attorney. The agreement shall include the following provisions: the ADU may not be sold or conveyed separately from the primary dwelling unit; the agreement may be enforced against future purchasers; and the ADU may not be rented for a period of less than 31 days. The City shall submit the agreement to the County Recorder for recordation. The agreement shall run with the land for life of the ADU. H. Nonconforming zoning conditions. The correction of existing nonconforming uses, structures, or parcels pursuant to Chapter 18.11 shall not be required as a condition of approval for an ADU. Section 6. Section 18.30.390 is hereby added to read as follows: 18.30.390 - Junior Accessory Dwelling Units. A. Purpose. The purpose of this section is to provide for the construction of Junior Accessory Dwelling Units (JADUs) in areas zoned to allow residential uses Zor y Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 41 226 of 324 pursuant to Government Code Section 65852.22. JADUs help advance the goals and policies of the City's Housing Element by: 1. Providing an affordable type of home to construct without the cost of acquiring new land, dedicated parking, and costly infrastructure; 2. Accommodating new housing units while preserving the character of existing neighborhoods; 3. Allowing efficient use of the city's existing housing stock and infrastructure; 4. Providing housing options and choices that respond to varying income levels, changing household sizes and lifestyle needs; and, 5. Providing a means for residents —particularly seniors, single parents, young singles, and younger couples —to remain in their homes and neighborhoods, and obtain and preserve income, security, companionship, and assistance. B. Consistency with state law. This section is intended to be consistent with Government Code Section 65852.22. If inconsistency is found with this section and state law, state law shall prevail. C. Definitions. For the purposes of this section junior accessory dwelling unit (JADU) is defined in Section 18.50.010. D. JADUs permitted. 1. One JADU is permitted on a lot if the following are met: a. The lot includes a proposed or existing single-family dwelling. b. The lot is in a zone that allows for a residential use as indicated in Table 18.20.020. c. The JADU meets the standards of subsection F. d. There is no existing ADU or JADU on the lot or there is an existing detached ADU that does not exceed a total floor area of 800 square feet and does not exceed a height of 16 feet. Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 42 227 of 324 e. The proposed JADU is located where the city manager or his/her designee has not determined that public utilities or services are inadequate or the JADU will adversely impact traffic flow or public safety. E. Review. The approval of a JADU is subject to a ministerial decision process outlined in Section 18.12.030. For the purposes of this subsection, a staff person designated by the city manager shall review and act on a building permit application for a JADU within 60 days after a complete application is received. A JADU proposed with a permit application for a new primary dwelling shall not be approved until the primary dwelling receives approval. F. Development standards. 1. A JADU may have a total floor area of not less than 150 square feet and not more than 500 square feet, and is permitted within an existing or proposed single-family residential dwelling unit. A JADU constructed within an existing structure may construct an additional 150 square feet for ingress and egress only. 2. A JADU shall have a separate exterior entry from the primary dwelling unit and shall provide a kitchen or an efficiency kitchen. 3. Parking. Replacement parking spaces are required when a JADU is created within an existing attached garage. Covered spaces are not required. G. Limitations and other requirements. 1. The owner must occupy the single-family residence in which the JADU will be permitted. The owner may reside in either the remaining portion of the structure or the newly created JADU. Owner -occupancy shall not be required if the owner is another governmental agency, land trust, or housing organization. 2. Before a building permit may be issued for a JADU, the record owner shall enter into an agreement with the City in a form that is approved by the City Attorney. The agreement shall include the following provisions: Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 43 228 of 324 the JADU may not be sold or conveyed separately from the primary dwelling unit; the agreement may be enforced against future purchasers: the JADU shall not be rented for a period of less than 31 days; and the record owner shall reside on the premises. The City shall submit the agreement to the County Recorder for recordation. The agreement shall run with the land for life of the JADU. Section 7. Table 18.45.040 (Schedule of Off -Street Parking Requirements by Land Use) is hereby amended to read as follows: Uses and Structures Minimum Parking Spaces Required (Unless Otherwise Specified) Residential Uses Dwelling, single detached (RS-1 zone) 2 covered spaces, plus one additional uncovered space per bedroom greater than four bedrooms or one additional uncovered space for dwellings greater than 2,500 SF, whichever is greater. Dwelling, single detached (all other RS and RM zones, except within the Westside Specific Plan area) One covered space and one uncovered space, plus one additional uncovered space per bedroom greater than four bedrooms or one additional uncovered space for dwellings greater than 2,500 SF, whichever is greater. Dwelling, single attached 1.5 spaces per dwelling unit in a garage or carport Dwelling, multiple 1.3 spaces per 1-bedroom dwelling unit plus 1.5 spaces per 2-bedroom or more unit, and conveniently located guest parking of space per unit for 20 units or less, plus 1/4 space for each unit over 20. Half of the required guest parking spaces may include parking spaces on dedicated public streets along the sides of the streets that are adjacent to the site. Fraternity, sorority house, or dormitory 1.5 spaces for each sleeping room Mobile home parks 2 spaces per unit Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 44 229 of 324 Uses and Structures Minimum Parking Spaces Required (Unless Otherwise Specified) Rectory 1 garage space per bedroom Rooming or boarding house 1 space per guest room Second dwelling unit 1 space in addition to primary residence parking requirements Senior housing 1 space per unit plus 1 guest space for each 10 units RS-4 (Westside Specific Plan): Units greater than 1,200 square feet 2 spaces per unit RS-4 (Westside Specific Plan): Units less than 1,200 square feet 1.7 spaces per unit Commercial and Office Uses Banks and financial institutions 3 spaces per 1,000 square feet floor area Offices, administrative, clerical, and professional Number of required parking spaces varies depending on the amount of floor area as identified in the column to the left. • First 5,000 square feet • 1 space per 200 square feet floor area • 5,000 to 10,000 square feet • 1 space per 250 square feet floor area • 10,000 to 30,000 square feet • 1 space per 300 square feet floor area • 30,000 to 100,000 square feet • 1 space per 350 square feet floor area Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 45 230 of 324 Uses and Structures Minimum Parking Spaces Required (Unless Otherwise Specified) • Over 100,000 square feet • 1 space per 400 square feet floor area Offices, medical/dental office or outpatient clinic, veterinary hospitals and clinics 1 space per 300 square feet floor area Lodging - Hotel, motel, bed and breakfast inn 1 for each guest bedroom, plus 1 for the manager's unit Restaurant, bar, nightclub, pool hall, bowling alley, or similar establishment 10 spaces per 1,000 square feet floor area Gasoline service station 1 space per 1,000 square feet of lot area; less the footprint of any convenience store area, plus 3.3 spaces per 1,000 square feet of convenience store area Commercial recreation, indoor 2.5 spaces per 1,000 square feet floor area Retail sales 1 for each 250 square feet of floor area Personal services 1 space per 300 square feet of floor area Shopping centers with multiple tenants 1 space per 200 square feet floor area Vehicle repair or service, including car wash 1 space per 500 square feet floor area Vehicle sales or rental (new and used) 1 space per 500 square feet floor area plus one per every 2,500 square feet outdoor display area Theater/auditorium, stadium/sports arena 1 space per 5 seats Mausoleum/crematory 25 spaces per 1,000 square feet of seating area Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 46 231 of 324 Uses and Structures Minimum Parking Spaces Required (Unless Otherwise Specified) CL zone (Westside Specific Plan): Office 2.9 spaces per 1,000 square feet floor area CL zone (Westside Specific Plan): Retail 3.6 spaces per 1,000 square feet floor area CL zone (Westside Specific Plan): Industrial 2 spaces per 1,000 square feet floor area Mixed -Uses in the MXD and MXC Zones Nonresidential uses Minimum: 2 spaces per 1,000 square feet floor area Residential - studio, 1 bedroom, and 2 bedroom units Minimum: 1 space per unit Residential - 3 or more bedroom units Minimum: 1.5 spaces per unit MCR Zones in the Westside Specific Plan Residential units greater than 1200 square feet 1.5 spaces per unit Residential units less than 1200 square feet 1 space per unit Office uses 2.9 spaces per 1,000 square feet floor area Retail uses 3.6 spaces per 1,000 square feet floor area Industrial uses 2 spaces per 1,000 square feet floor area Industrial Uses Industrial manufacturing and processing uses, waterfront related 1 space for each 1,000 square feet of floor area Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 47 232 of 324 Uses and Structures Minimum Parking Spaces Required (Unless Otherwise Specified) industry, wholesaling, warehousing, and distribution Industrial/building supplies and equipment, sales and rentals 1 space per 800 square feet floor area Research and development 1 space per 400 square feet of floor area Recycling facilities 2 spaces per 1,000 square feet floor area Animal boarding/kennel 1 space per 500 square feet floor area Trucking and transportation terminal 2 spaces per 1,000 square feet floor area plus 1 space for every 2 fleet vehicles Institutional Uses Hospital or other inpatient medical institution 1 space per 3 beds, excluding bassinets Civic, fraternal, community, and cultural facilities 1 space per every 200 square feet of floor space open to the public plus 1 space per each 300 square feet of administrative office area Public/religious assembly, fraternal lodge or club, banquet fall/facilities, and similar establishments 1 space for every 35 square feet of seating area Convention center 1 space per 50 square feet floor area Child day care center, preschool, or nursery school 2 spaces per 1,000 square feet floor area Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 48 233 of 324 Uses and Structures Minimum Parking Spaces Required (Unless Otherwise Specified) Schools, elementary and middle 1.5 spaces per classroom plus area one space for each 300 square feet of office area Schools, high 1 space per each 150 square feet of classroom area plus one space for each 300 square feet office area Schools, trade, college/university, business, adult education 1 space per 40 square feet of classroom area plus 1 space per 300 square feet of office area Open Space/Agriculture Neighborhood and community farms Minimum 2 parking spaces, plus one additional space for every acre of garden site lot area over 2 acres. Each garden site that includes a farm stand shall provide 1 additional space for every 250 feet of floor area and outdoor display space. Section 8. The following definitions in Chapter 18.50 (Glossary) are hereby amended to read as follows: The definition of "Second unit" is hereby repealed. Accessory Dwelling Unit (ADU): "Accessory Dwelling Unit" means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. An ADU also includes an efficiency unit and a manufactured home, as defined in Section 18007 of the Health and Safety Code. Refer to Section 18.030.380 for ADU regulations. Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Ordinance No. 2021 - (Date) 49 234 of 324 Junior Accessory Dwelling Unit (JADU): "Junior Accessory Dwelling Unit" means a unit that is no more than 500 square feet in size and contained entirely within a single-family residence. A JADU may include separate sanitation facilities, or may share sanitation facilities with the existing structure. Refer to Section 18.030.390 for JADU regulations. Section 9. Severability. If any section, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this ordinance and adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional. Section 10. This Ordinance shall take effect and be in force thirty (30) days from the date of its passage, and before the expiration of fifteen (15) days after its passage, it or a summary of it, shall be published once, with the names of the members of the City Council voting for and against the same in the Star News, a newspaper of general circulation published in the County of San Diego, California. PASSED and ADOPTED this 21st day of September, 2021. ATTEST: Shelley Chapel, Deputy City Clerk APPROVED AS TO FORM: Charles E. Bell Jr., City Attorney Zoning Ordinance NCMC Sections 18.20.020, 18.21.040, 18.21.050 18.45, 18.50, 18.30.380, 18.30.390 Alejandra Sotelo-Solis, Mayor Ordinance No. 2021 - (Date) 50 235 of 324 The following page(s) contain the backup material for Agenda Item: Approval of the 2021 Pension Obligation Bonds. (Finance) Please scroll down to view the backup material. 236 of 324 RESOLUTION NO. 2021- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF AN OFFICIAL STATEMENT AND CONTINUING DISCLOSURE CERTIFICATE RELATING TO THE ISSUANCE OF TAXABLE PENSION OBLIGATION BONDS AND APPROVING ADDITIONAL ACTIONS RELATED THERETO WHEREAS, the City of National City (the "City") has previously adopted Resolution No. 2020-201 on October 20, 2020 approving the issuance of the City of National City 2021 Taxable Pension Obligation Bonds in an aggregate principal amount not to exceed $135,000,000 (the "Bonds"), approving the form and authorizing the execution of a Trust Agreement by and between the City and a trustee to be selected by the City (the "Trustee") and a Bond Purchase Agreement by and between the City and an underwriter or underwriters to be selected by the City, and authorizing the filing of judicial validation proceedings relating to the issuance of the Bonds and approving additional actions related thereto; and WHEREAS, the City desires to approve the form of and authorize the execution of an Official Statement and Continuing Disclosure Certificate relating to the Bonds; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: Section 1. The City Council does hereby find and declare that the above recitals are true and correct. Section 2. The form of the Preliminary Official Statement, presented to the City Council at this meeting and on file with the City Clerk, is hereby approved. The City Manager, the Assistant City Manager, the Administrative Services Director, or their written designees (the "Authorized Officers") are hereby authorized to make such changes to the Preliminary Official Statement as are necessary to make it final as of its date and are authorized and directed to execute and deliver a certificate deeming the Preliminary Official Statement final as of its date in accordance with Rule 15c2-12 promulgated under the Securities Exchange Act of 1934. Each of the Authorized Officers is hereby authorized and directed to execute, approve and deliver the final Official Statement, in the form of the Preliminary Official Statement with such changes, insertions and omissions as the Authorized Officer executing said document may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof by one or more of the Authorized Officers. Section 3. The form of the Continuing Disclosure Certificate (the "Continuing Disclosure Certificate"), presented to the City Council at this meeting and on file with the City Clerk, is hereby approved. Each of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Continuing Disclosure Certificate in substantially said form, with such changes therein as the Authorized Officer executing such document may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. 237 of 324 Section 4. The Authorized Officers are, and each of them hereby is, authorized and directed to execute and deliver any and all documents and instruments and to do and cause to be done any and all acts and things necessary or proper for carrying out the transactions contemplated hereby. Section 5. adoption hereof. This Resolution shall take effect from and after the date of approval and The City Clerk of the City of National City shall certify as to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 19th of October, 2021. ATTEST: LUZ MOLINA, CITY CLERK ALEJANDRA SOTELO-SOLIS, MAYOR 2 238 of 324 o PRELIMINARY OFFICIAL STATEMENT DATED , 2021 'a al NEW ISSUE —BOOK -ENTRY ONLY RATING: S&P: "" (See the caption "RATING" herein) In the opinion of Kutak Rock LLP, Bond Counsel, under existing laws, regulations, rulings and judicial decisions and at -fl • assuming the accuracy of certain representations and continuing compliance with certain covenants, interest on the Bonds is not excludable from gross income for federal income tax purposes. Bond Counsel is also of the opinion that interest on the Bonds is • o exempt from State of California personal income taxes. For a more detailed description of such opinions of Bond Counsel, see 7, 2 "TAX MATTERS" herein. ' .a o $ * 2 o CITY OF NATIONAL CITY w ,.5 2021 TAXABLE PENSION OBLIGATION BONDS O v 7 Go 75 Dated: Date of Delivery Due: November 1, as shown on the inside front cover page g The City of National City (the "City") is issuing its $ " aggregate principal amount of 2021 Taxable Pension .a 2 Obligation Bonds (the "Bonds"), pursuant to a Trust Agreement, dated as of 1, 2021, by and between the City and o N , as trustee, and pursuant to Articles 10 and 11 (commencing with Section 53570) of Chapter 3 of Part 1 of Division 2 ,D 8 of Title 5 of the California Government Code. The Bonds are being issued: (i) to part of the City's currently o [amortized][unamortized], unfunded accrued actuarial liability to the California Public Employees Retirement System with i Pu respect to the City's defined benefit retirement plans for City employees; and (ii) to pay costs of issuance of the Bonds. See the caption "PLAN OF REFINANCING." The Bonds will be delivered in fully registered form only, and when delivered will be registered in the name of Cede & 0 Co., as nominee of The Depository Trust Company, New York, New York ("DTC"). See the caption "THE BONDS— O Q General." So long as Cede & Co. is the registered owner of the Bonds, references herein to the owners of the Bonds mean 8 Cede & Co. and do not mean the Beneficial Owners of the Bonds. Interest on the Bonds is payable semiannually on May 1 and November 1 of each year, commencing May 1, 2022, through the maturity date of such Bonds. The Bonds will be issued in denominations of integral multiples of $5,000. The Bonds • a will be issued in such principal amounts, and will bear interest at the rates, payable on the dates as shown on the inside front E o cover page of this Official Statement. The City has not funded a reserve fund in connection with the issuance of the Bonds. = The Bonds are subject to optional and mandatory sinking fund redemption prior to maturity as described under the o :E 0 caption "THE BONDS." °) b THE OBLIGATIONS OF THE CITY UNDER THE BONDS, INCLUDING THE OBLIGATION TO MAKE ALL E o PAYMENTS OF THE INTEREST ON AND THE PRINCIPAL OF THE BONDS WHEN DUE OR UPON PRIOR REDEMPTION, ARE ABSOLUTE AND UNCONDITIONAL, WITHOUT ANY RIGHT OF SET-OFF OR COUNTERCLAIM. THE BONDS DO NOT CONSTITUTE AN OBLIGATION OF THE CITY FOR WHICH THE CITY IS °; • ° OBLIGATED TO LEVY OR PLEDGE ANY FORM OF TAXATION OR FOR WHICH THE CITY HAS LEVIED OR • Q .p PLEDGED ANY FORM OF TAXATION. SEE THE CAPTION "SECURITY AND SOURCE OF PAYMENT FOR THE E .2 BONDS." h THIS COVER PAGE CONTAINS CERTAIN INFORMATION FOR REFERENCE ONLY. IT IS NOT A o SUMMARY OF THIS ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT TO OBTAIN o '' INFORMATION ESSENTIAL TO THE MAKING OF AN INFORMED INVESTMENT DECISION. MATURITY SCHEDULE 8 g 3 (See inside front cover page) o 'o The Bonds are offered when, as and if issued and received by the Underwriter, subject to the approval of the valid, o c .° legal and binding nature of the Bonds by Kutak Rock LLP, Bond Counsel, and certain other conditions. Certain matters will be -o passed upon for the City by the City Attorney, and by Kutak Rock LLP, as Disclosure Counsel, for the Underwriter by its counsel, Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach, California, and for the Trustee by its counsel. It is anticipated that the Bonds will be available for delivery through the facilities of The Depository Trust Company on E ▪ 5 or about , 2021. y • 0 • .° HILLTOP SECURTIES INC. v).•s~ .8 ▪ 1 Dated: , 2021 p 3 * Preliminary, subject to change. .50 0 w y ,n 239 of 324 MATURITY SCHEDULE $ CITY OF NATIONAL CITY 2021 TAXABLE PENSION OBLIGATION BONDS BASE CUSIPt: Maturity Principal Interest (November 1) Amount Rate Yield Price CUSIPt $ % Term Bond due November 1, 20 ; Yield ; Price %; CUSIPt: % Term Bond due November 1, 20; Yield ; Price %; CUSIPt: ' Preliminary, subject to change. CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by S&P Capital IQ. Copyright® 2021 CUSIP Global Services. All rights reserved. CUSIP' data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. Neither the City nor the Underwriter takes any responsibility for the accuracy of such numbers. 240 of 324 CITY OF NATIONAL CITY COUNTY OF SAN DIEGO, CALIFORNIA CITY COUNCIL Alejandra Sotelo-Solis, Mayor Jose Rodriguez, Vice Mayor Marcus Bush, Councilmember Ron Morrison, Councilmember Mona Rios, Councilmember CITY OFFICIALS Brad Raulston, City Manager Tony Winney, Assistant City Manager Molly Brennan, Director of Administrative Services R. Mitchell Beauchamp, City Treasurer Charles E. Bell Jr., City Attorney Luz Molina, City Clerk BOND COUNSEL AND DISCLOSURE COUNSEL Kutak Rock LLP Irvine, California TRUSTEE 1 MUNICIPAL ADVISOR NHA Advisors LLC San Rafael, California. 241 of 324 No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make any representations in connection with the offer or sale of the Bonds other than those contained herein and, if given or made, such other information or representations must not be relied upon as having been authorized by the City. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. This Official Statement is not to be construed as a contract with the purchasers or Owners of the Bonds. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. This Official Statement and the information that is contained herein are subject to completion or amendment without notice, and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City or any other parties that are described herein since the date hereof. These securities may not be sold, nor may an offer to buy them be accepted, prior to the time that the Official Statement is delivered in final form. This Official Statement is being submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose, unless authorized in writing by the City. All summaries of documents and laws are made subject to the provisions thereof and do not purport to be complete statements of any or all such provisions. Certain statements which are included or incorporated by reference in this Official Statement constitute "forward - looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used, such as "plan," "expect," "estimate," "project," "budget," "intend" or similar words. Such forward -looking statements include, but are not limited to, certain statements contained under the captions "THE CITY" and "CITY FINANCIAL INFORMATION" and in Appendix B. Historical information set forth in the Official Statement is not intended to be predictive of future results. THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH FORWARD -LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD -LOOKING STATEMENTS. THE CITY DOES NOT PLAN TO ISSUE ANY UPDATES OR REVISIONS TO THE FORWARD -LOOKING STATEMENTS SET FORTH IN THIS OFFICIAL STATEMENT. IN EVALUATING SUCH STATEMENTS, POTENTIAL INVESTORS SHOULD SPECIFICALLY CONSIDER THE VARIOUS FACTORS WHICH COULD CAUSE ACTUAL EVENTS OR RESULTS TO DIFFER MATERIALLY FROM THOSE INDICATED BY SUCH FORWARD -LOOKING STATEMENTS. IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. THE UNDERWRITER MAY OFFER AND SELL THE BONDS TO CERTAIN DEALERS, DEALER BANKS, BANKS ACTING AS AGENT AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICE STATED ON THE COVER PAGE HEREOF, AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITER. THE BONDS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, IN RELIANCE UPON AN EXEMPTION CONTAINED IN SUCH ACT, AND HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE. The City maintains a website; however, information presented there is not a part of this Official Statement and should not be relied upon in making an investment decision with respect to the Bonds. 242 of 324 TABLE OF CONTENTS INTRODUCTION 1 General 1 The Bonds 1 Validation 2 Continuing Disclosure 2 Miscellaneous 2 THE BONDS 2 General 2 Optional Redemption of the Bonds 3 Mandatory Sinking Fund Redemption of the Bonds 3 Selection of Bonds for Redemption 4 Notice of Redemption 5 SECURITY AND SOURCE OF PAYMENT FOR THE BONDS 6 Bond Payments 6 Revenue Fund 6 Limited Obligations 6 Additional Bonds 7 No Reserve Fund 7 CITY PENSION PLANS 7 General 7 California Public Employees' Pension Reform Act of 2013 (PEPRA) 8 Annual Ca1PERS Contributions 9 Normal Costs 9 Unfunded Accrued Liability Payments 10 Potential Impacts on Future Required Contributions 11 GASB 68 Pension Information Provided in the Audited Financial Statements 11 PLAN OF REFINANCING 14 DEFERRAL OF PENSION LIABILITY PAYMENTS 15 ESTIMATED SOURCES AND USES OF FUNDS 15 FISCAL YEAR DEBT SERVICE REQUIREMENTS 16 THE CITY 16 General 16 Govemment and Administration 17 Risk Management 17 CITY FINANCIAL INFORMATION 19 Accounting and Financial Reporting 19 City Financial Policies and Practices 20 Budget Procedure, Current Budget and Historical Budget Information 22 Change in Fund Balance of the City General Fund 26 General Fund Balance Sheets of the City 27 Tax Revenues of the City 27 Sales Taxes 28 Property Taxes 28 Other Taxes and Other Revenues 32 Franchise Taxes 32 Transient Occupancy Taxes 32 Other Revenues 33 Other Indebtedness 33 City Investment Policy 34 Other Post -Employment Benefits 35 City Financial Statements 37 STATE OF CALIFORNIA BUDGET INFORMATION37 General 37 i Budget for State Fiscal Year 2021-22 38 Potential Impact of State Financial Condition on the City 39 Future State Budgets 40 RISK FACTORS 40 City Obligations 40 Certain Risks Associated with Sales Tax and Other Local Tax Revenues 40 Assessed Value of Taxable Property 41 Increasing Retirement -Related Costs 41 Dependence on State for Certain Revenues 42 No Reserve Fund 42 Litigation 42 Natural Disasters 42 Climate Change 43 Hazardous Substances 44 Cybersecurity 44 Limitation on Sources of Revenues 44 Economy of City and State 45 Limitation on Remedies; Bankruptcy 45 Limitation on Trustee's Obligations 47 Limited Secondary Market 47 Changes in Law 47 CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS 47 Article XIIIA of the State Constitution 47 Proposition 19 48 Article XIIIB of the State Constitution 48 Proposition 62 49 Iliiihi Proposition 218 49 Unitary Property 50 Proposition lA 50 Proposition 22 51 Proposition 26 51 Future Initiatives 51 TAX MATTERS 52 VALIDATION 52 CERTAIN LEGAL MATTERS 53 LITIGATION 53 RATING 53 CONTINUING DISCLOSURE 54 UNDERWRITING 54 MUNICIPAL ADVISOR 54 MISCELLANEOUS 54 APPENDIX A —AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020A-1 APPENDIX B—ECONOMIC AND DEMOGRAPHIC INFORMATION REGARDING THE CITY OF NATIONAL CITY B-1 APPENDIX C—SUMMARY OF CERTAIN PROVISIONS OF THE TRUST AGREEMENT C-1 APPENDIX D—FORM OF BOND COUNSEL OPINIOND-1 APPENDIX E—FORM OF CONTINUING DISCLOSURE CERTIFICATE E-1 APPENDIX F—BOOK-ENTRY SYSTEM F-1 i 243 of 324 CITY OF NATIONAL CITY 2021 TAXABLE PENSION OBLIGATION BONDS INTRODUCTION This Introduction contains only a brief summary of certain of the terms of the Bonds being offered and a brief description of the Official Statement. All statements contained in this Introduction are qualified in their entirety by reference to the entire Official Statement. References to, and summaries of provisions of the Constitution and laws of the State of California and any documents referred to herein do not purport to be complete, and such references are qualified in their entirety by the complete documents. This Official Statement speaks only as of its date, and the information contained herein is subject to change. General This Official Statement provides certain information concerning the issuance, sale and delivery of the City of National City 2021 Taxable Pension Obligation Bonds (the "Bonds"), in the aggregate principal amount of $ °. The Bonds are being issued pursuant to the Trust Agreement, dated as of 1, 2021 (the "Trust Agreement"), by and between the City of National City (the "City") and , California, as trustee (the "Trustee"). For definitions of certain words and terms which are used herein but not otherwise defmed, see Appendix C. The Bonds are being issued: (i) to pay part of the City's currently [amortized] [unamortized], unfunded accrued actuarial liability (the "Pension Liability") to the California Public Employees' Retirement System ("CaIPERS") with respect to the City's defined benefit retirement plans for City employees; and (ii) to pay costs of issuance of the Bonds. See the caption "PLAN OF REFINANCING." The obligation of the City to make all payments of interest on and principal of the Bonds when due, are absolute and unconditional, without any right of set-off or counterclaim. The Bonds are not limited as to payment to any special source of funds of the City. THE BONDS DO NOT CONSTITUTE AN OBLIGATION OF THE CITY FOR WHICH THE CITY IS OBLIGATED TO LEVY OR PLEDGE ANY FORM OF TAXATION OR FOR WHICH THE CITY HAS LEVIED OR PLEDGED ANY FORM OF TAXATION. NEITHER THE BONDS NOR THE OBLIGATION OF THE CITY TO MAKE PAYMENTS ON THE BONDS CONSTITUTES AN INDEBTEDNESS OF THE CITY, THE STATE OR ANY OF ITS POLITICAL SUBDIVISIONS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR RESTRICTION. The Bonds The City is a member of CaIPERS, an agent multiple -employer public employee defmed benefit pension plan. CaIPERS provides retirement and disability benefits, annual cost -of -living adjustments and death benefits to plan members and beneficiaries. CaIPERS acts as a common investment and administrative agent for participating public entities within the State of California (the "State"), including the City. As such, the City is obligated by the Public Employees' Retirement Law, constituting Part 3 of Division 5 of Title 2 of the California Government Code (the "Retirement Law"), and the contract, dated October 1, 1948 (as amended, the "CaIPERS Contract"), by and between the City Council of the City (the "City Council") and the Board of Administration of Ca1PERS, to: (a) make contributions to Ca1PERS to fund pension benefits for certain City employees, (b) amortize the unfunded accrued actuarial liability with respect to such pension benefits, and (c) appropriate funds for such purposes. Preliminary, subject to change. 1 244 of 324 The City is authorized pursuant to Articles 10 and 11 (commencing with Section 53570) of Chapter 3 of Division 2 of Title 5 of the California Government Code (the "Refunding Bond Law"), to issue bonds for the purpose of refunding obligations evidenced by the CaIPERS Contract. The Bonds are authorized and issued pursuant to the Trust Agreement and a resolution adopted by the City Council on October 20, 2020 (the "Resolution"). The proceeds of the sale of the Bonds (exclusive of amounts applied to pay costs of issuance) will be used to refund all or a portion of the City's obligations evidenced by the Ca1PERS Contract, representing the Pension Liability with respect to certain pension benefits under the Retirement Law. Validation On December 10, 2020, the City filed a complaint in the Superior Court of the State of California for the County of San Diego (the "Court") in a matter entitled City of National City, California v. All Persons Interested et al. (Case No. 37-2020-00045564-CU-MC-CTL) (the "Validation Petition"). The City filed the Validation Petition in order to seek judicial validation of the issuance of the Bonds and any future bonds issued to refund the Bonds. On June 15, 2021, the Court entered a default judgment (the "Validation Judgment") in favor of the City with respect to the Validation Petition. On July 15, 2021, the Validation Judgment became binding and conclusive in accordance with State law. See the caption "VALIDATION." Continuing Disclosure The City has covenanted for the benefit of the Holders of the Bonds to provide, or to cause to be provided, to the Municipal Securities Rulemaking Board's Electronic Municipal Market Access System certain annual financial information and operating data and, in a timely manner, notice of certain enumerated events. These covenants have been made in order to assist the Underwriter in complying with Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time ("Rule 15c2-12"). See the caption "CONTINUING DISCLOSURE" and Appendix E for a description of the specific nature of the annual report and notices of enumerated events. Miscellaneous The information and expressions of opinion herein speak only as of their date and are subject to change without notice. Neither the delivery of this Official Statement nor any sale made hereunder nor any future use of this Official Statement will, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. Included herein are brief summaries of the Trust Agreement and certain documents and reports, which summaries do not purport to be complete or definitive, and reference is made to such documents and reports for full and complete statements of the contents thereof. See Appendix C. Any statements in this Official Statement involving matters of opinion, whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the City and the purchasers or Holders of the Bonds. Copies of the documents are on file and available for inspection at the corporate trust office of the Trustee in , California. All capitalized terms used in this Official Statement and not otherwise defined have the meanings given to such terms in the Trust Agreement. THE BONDS General The Bonds will be issued in fully registered form only and, when delivered, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC"). DTC will act as Securities Depository for the Bonds. Ownership interests in the Bonds may be purchased in book -entry form only, in the denominations hereinafter set forth. Principal, premium, if any, and interest on 2 245 of 324 the Bonds will be payable by the Trustee to DTC, which is obligated in turn to remit such principal and interest to DTC Participants for subsequent disbursement to Beneficial Owners of the Bonds. See Appendix F. The Bonds will be dated the date of delivery, mature on the dates and in the principal amounts and bear interest at the rates set forth on the inside front cover page of this Official Statement. The Bonds will be delivered in denominations equal to $5,000 or any integral multiple thereof. Interest on the Bonds will be payable on each May 1 and November 1, commencing May 1, 2022 (each, an "Interest Payment Date"). Interest on each Bond of each maturity will be payable at the respective per annum rates set forth in inside cover herein and will be payable on each Interest Payment Date until maturity or earlier redemption, computed using a year of 360 days comprised of twelve 30 day months. Interest on each Bond will accrue from the Interest Payment Date for the Bonds next preceding the date of authentication and delivery thereof, unless (i) such date of authentication is an Interest Payment Date in which event interest will be payable from such date of authentication; (ii) it is authenticated after a Record Date and before the close of business on the immediately following Interest Payment Date, in which event interest thereon will be payable from such Interest Payment Date; or (iii) it is authenticated prior to the close of business on the first Record Date, in which event interest thereon will be payable from the Closing Date; provided, however, that if at the time of authentication of any Bond interest thereon is in default, interest thereon will be payable from the Interest Payment Date to which interest has previously been paid or made available for payment or, if no interest has been paid or made available for payment, from the Closing Date. Principal, premium, if any, and interest on the Bonds will be payable in currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Payments of interest on any of the Bonds will be made on each Interest Payment Date by check of the Trustee sent by Mail, or by wire transfer to any Holder of $1,000,000 or more of Bonds, to the account specified by such Holder in a written request delivered to the Trustee on or prior to the Record Date for such Interest Payment Date, to the Holder thereof on the Record Date; provided, however, that payments of defaulted interest will be payable to the person in whose name such Bond is registered at the close of business on a special record date fixed therefor by the Trustee which will not be more than 15 days and not less than ten days prior to the date of the proposed payment of defaulted interest. Payment of the principal of the Bonds upon redemption or maturity will be made upon presentation and surrender of each such Bond, at the Principal Office of the Trustee. Optional Redemption of the Bonds The Bonds maturing on or after November 1, 20_ may be redeemed at the option of the City from any source of funds on any date on or after November 1, 20_ in whole or in part from such maturities as are selected by the City and by lot within a maturity at a redemption price equal to the principal amount to be redeemed, together with accrued interest to the date of redemption, without premium. Mandatory Sinking Fund Redemption of the Bonds The Bonds maturing November 1, 20_ (the "20_ Term Bonds") are subject to mandatory sinking fund redemption at a redemption price equal to the principal amount thereof, plus accrued interest to the redemption date, without premium. The 20_ Term Bonds will be so redeemed on the following dates and in the following amounts: 3 246 of 324 Redemption Date (November 1) Final maturity. Principal Amount The Bonds maturing November 1, 20_ (the "20_ Term Bonds") are subject to mandatory sinking fund redemption at a redemption price equal to the principal amount thereof, plus accrued interest to the redemption date, without premium. The 20_ Term Bonds will be so redeemed on the following dates and in the following amounts: Redemption Date (November 1) Final maturity. Principal Amount On or before each October 15 next preceding any mandatory sinking fund redemption date, the Trustee will proceed to select for redemption pro-rata from all Term Bonds subject to mandatory sinking fund redemption at that time, an aggregate principal amount of such Term Bonds equal to the amount for such year as set forth in the table above and will call such Term Bonds or portions thereof for redemption and give notice of such redemption in accordance with the terms of the Trust Agreement. At the option of the City, to be exercised by delivery of a written certificate to the Trustee on or before October 1 next preceding any mandatory sinking fund redemption date, it may: (a) deliver to the Trustee for cancellation Term Bonds or portions thereof (in the amount of an Authorized Denomination) of the stated maturity subject to such redemption; or (b) specify a principal amount of such Term Bonds or portions thereof (in the amount of an Authorized Denomination) which prior to said date have been purchased or redeemed (otherwise than under the mandatory sinking fund redemption provisions of the Trust Agreement) and cancelled by the Trustee at the request of the City and not theretofore applied as a credit against any mandatory sinking fund redemption requirement. Each such Term Bonds or portion thereof so delivered or previously redeemed will be credited by the Trustee at 100% of the principal amount of the Term Bonds so delivered to the Trustee by the City against the obligation of the City on such mandatory sinking fund redemption date. Selection of Bonds for Redemption If less than all of the Bonds are called for redemption, the City will designate the maturities from which the Bonds are to be redeemed. For so long as the Bonds are registered in book entry form and DTC or a successor securities depository is the sole registered owner of such Bonds, if fewer than all of such Bonds of the same maturity and bearing the same interest rate are to be redeemed, the particular Bonds to be redeemed shall be selected on a pro rata pass -through distribution of principal basis in accordance with the operational arrangements of DTC then in effect, and if the DTC operational arrangements do not allow for redemption on a pro rata pass -through distribution of principal basis, all Bonds to be so redeemed will be selected for redemption in accordance with DTC procedures by lot; provided further that any such redemption must be performed such that all Bonds remaining outstanding will be in authorized denominations. In connection with any repayment of principal of the Bonds pursuant to the pass -through distribution of principal as described above, the Paying Agent will direct DTC to make a pass -through distribution of principal to the owners of the Bonds. A form of Pro Rata Pass -Through Distribution of Principal Notice will 4 247 of 324 be provided to the Trustee that includes a table of factors reflecting the relevant scheduled redemption payments and DTC's applicable procedures, which are subject to change. For purposes of calculating pro rata pass -through distributions of principal, "pro rata" means, for any amount of principal or interest to be paid, the application of a fraction to such amounts where (a) the numerator is equal to the amount due to the owners of the Bonds on a payment date, and (b) the denominator is equal to the total original par amount of the Bonds. It is the City's intent that redemption allocations made by DTC with respect to the Bonds be made on a pro rata pass -through distribution of principal basis as described above. However, the City cannot provide any assurance that DTC, DTC's direct and indirect participants, or any other intermediary will allocate the redemption of such Bonds on such basis. If the Bonds are not registered in book -entry form and if fewer than all of the Bonds of the same maturity and bearing the same interest rate are to be redeemed, the Bonds of such maturity and bearing such interest rate to be redeemed will be selected on a pro rata basis, and the particular Bonds of such maturity and bearing such interest rate to be redeemed will be selected by lot, provided that any such redemption must be performed such that all Bonds remaining outstanding will be in authorized denominations. Upon surrender of a Bond to be redeemed in part, the Trustee will authenticate for the registered owner a new Bond or Bonds of the same maturity and tenor equal in principal amount to the unredeemed portion of the Bond surrendered. Notice of Redemption Notice of redemption will be given by the Trustee, not less than 30 nor more than 60 days prior to the redemption date: (i) in the case of Bonds not registered in the name of a Securities Depository or its nominee, to the respective Holders of the Bonds designated for redemption at their addresses appearing on the registration books of the Trustee; (ii) in the case of Bonds registered in the name of a Securities Depository or its nominee, to such Securities Depository for such Bonds; and (iii) to the Information Services. Notice of redemption to the Holders pursuant to clause (i) above will be given by mail at their addresses appearing on the registration books of the Trustee, or any other method agreed upon by such Holder and the Trustee. Notice of redemption to the Securities Depositories pursuant to clause (ii) above and the Information Services pursuant to clause (iii) above will be given by electronically secure means, or any other method agreed upon by such entities and the Trustee. Each notice of redemption will state the Bonds or designated portions thereof to be redeemed, the date of redemption, the place of redemption, the redemption price, the CUSIP number (if any) of the Bonds to be redeemed, the distinctive numbers of the Bonds of such maturity to be redeemed, in the case of Bonds to be redeemed in part only, the respective portions of the principal amount thereof to be redeemed, the original issue date, the interest rate and the stated maturity date of each Bond to be redeemed in whole or part. Each such notice will also state that on said date there will become due and payable on each of the Bonds to be redeemed the redemption price, and redemption premium, if any, thereof, and that from and after such redemption date interest thereon will cease to accrue. Failure to give the notices described above or any defect therein will not in any manner affect the redemption of any Bonds. Any notice sent as provided in the Trust Agreement will be conclusively presumed to have been given whether or not actually received by the addressee. The City has the right to rescind any notice of redemption previously sent pursuant to the Trust Agreement. Any such notice of rescission will be sent in the same manner as the notice of redemption. Neither the City nor the Trustee will incur any liability, to Bond Owners, DTC, or otherwise, as a result of a rescission of a notice of redemption. 5 248 of 324 SECURITY AND SOURCE OF PAYMENT FOR THE BONDS Bond Payments The City will provide for payment of principal or redemption price of and interest on the Bonds from any source of legally available funds of the City. If any Bonds are Outstanding, the City will, no later than three Business Days preceding each Interest Payment Date, beginning May 1, 2022, deliver funds to the Trustee for deposit to the Revenue Fund in an aggregate amount equal to the principal (if applicable) and interest payments coming due with respect to the Bonds on such Interest Payment Date (less amounts on deposit in the Revenue Fund). The Bonds are obligations of the City payable from any lawfully available funds, are not limited as to payment to any special source of funds of the City and is subject to appropriation in accordance with the Trust Agreement. The Bonds do not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation. The obligations of the City under the Bonds, including the obligation to make all payments of principal, premium, if any, and interest when due, are absolute and unconditional, without any right of set-off or counter claim. Revenue Fund There has been created pursuant to the Trust Agreement a Fund to be held by the Trustee designated as the "City of National City 2021 Taxable Pension Obligation Bonds Revenue Fund" (the "Revenue Fund"). There has been created in the Revenue Fund two separate Accounts designated the "Bond Interest Account" and the "Bond Principal Account." All amounts received by the Trustee from the City in respect of interest payments on the Bonds will be deposited in the Bond Interest Account and will be disbursed to the applicable Bondholders to pay interest on the Bonds. All amounts held at any time in the Bond Interest Account will be held for the security and payment of interest on the Bonds pursuant to the Trust Agreement. If at any time funds on deposit in the Bond Interest Account are insufficient to provide for the payment of such interest, the City will promptly deposit funds to such Account to cure such deficiency. On November 2 of each year beginning in 2022, so long as no Event of Default has occurred and is continuing, the Trustee will transfer all amounts on deposit in the Bond Interest Account to the Revenue Fund to be used for any lawful purpose. All amounts received by the Trustee from the City in respect of principal payments on the Bonds will be deposited in the Bond Principal Account and all amounts in the Bond Principal Account will be disbursed to pay principal on the Bonds pursuant to the Trust Agreement. If at any time funds on deposit in the Bond Principal Account are insufficient to provide for the payment of such principal, the City will promptly deposit funds to such Account to cure such deficiency. The moneys in such Fund and Accounts will be held by the Trustee in trust and applied as provided in the Trust Agreement and, pending such application, will be subject to a lien and charge in favor of the holders of the Bonds issued and Outstanding under the Trust Agreement and for the further security of such holders until paid out or transferred as provided in the Trust Agreement. Limited Obligations THE BONDS ARE GENERAL OBLIGATIONS OF THE CITY PAYABLE FROM ANY LAWFULLY AVAILABLE FUNDS OF THE CITY AND ARE NOT LIMITED AS TO PAYMENT TO ANY SPECIAL SOURCE OF FUNDS OF THE CITY. THE BONDS DO NOT CONSTITUTE AN OBLIGATION OF THE CITY FOR WHICH THE CITY IS OBLIGATED TO LEVY OR PLEDGE ANY 6 249 of 324 FORM OF TAXATION OR FOR WHICH THE CITY HAS LEVIED OR PLEDGED ANY FORM OF TAXATION. NEITHER THE BONDS NOR THE OBLIGATION OF THE CITY TO MAKE PAYMENTS WITH RESPECT TO THE BONDS CONSTITUTES AN INDEBTEDNESS OF THE CITY, THE STATE OR ANY OF ITS POLITICAL SUBDIVISIONS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR RESTRICTION. Additional Bonds From time to time, the City may enter into: (a) one or more other trust agreements or indentures; and/or (b) one or more agreements supplementing and/or amending the Trust Agreement, for the purpose of providing for the issuance of Additional Bonds to (i) refund the Bonds; or (ii) to refund any Pension Liability under the Ca1PERS Contract arising subsequent to the issuance of the Bonds or any other obligations due to Ca1PERS. Such Additional Bonds may be issued solely on a parity with or subordinate basis to the Bonds. No Reserve Fund The City has not funded a reserve fund in connection with the issuance of the Bonds. CITY PENSION PLANS The following information is primarily derived from the City's most recent CalPERS Annual Valuation Reports as of June 30, 2020 which was produced by CalPERS, its staff independent accountants, and actuaries. Actuarial assessments are `forward -looking" statements that reflect the judgment of the fiduciaries of the pension plans, and are based upon a variety of assumptions, one or more of which may not materialize or be changed in the future. Neither the City nor the Underwriter has independently verified such information and neither makes any representations nor expresses any opinion as to the accuracy of the information that has been provided by CalPERS. The City 's CalPERS Annual Valuation Reports are available on CalPERS' Internet website at www.calpers.ca.gov. General The City participates in a Miscellaneous Plan and a Safety Plan to fund pension benefits for employees. The City's pension plans are administered by Ca1PERS. CaIPERS administers an agent multiple - employer public employee defined benefit pension plan for all of the City's full-time and certain part-time employees. Ca1PERS provides retirement, disability and death benefits to plan members and beneficiaries and acts as a common investment and administrative agent for participating public entities within the State, including the City. Ca1PERS plan benefit provisions and all other requirements are established by State statute and the City Council. 7 250 of 324 City employees are subject to different benefit levels based on their hire date. Current benefit provisions for City employees are set forth below. City of National City Ca1PERS Pension Plans — Summary of Benefit Provisions Hire date Benefit formula Benefit vesting schedule Benefit payments Retirement age Monthly benefits, as a % of eligible compensation Required employee contribution rates Required employer contribution rates Hire date Benefit formula Benefit vesting formula Benefit payments Retirement age Monthly benefits, as a % of eligible compensation Required employee contribution rates Required employer contribution rates Hire date Benefit formula Benefit vesting formula Benefit payments Retirement age Monthly benefits, as a % of eligible compensation Required employee contribution rates Required employer contribution rates * Closed to new entrants. Source: City. [TO BE REVISED] Miscellaneous Plan Tier 1 * Prior to April 22, 2011 3% @ 60 5 years of service Monthly for life 50 2.0% to 3.0% 8.0% 31.545% Safety Fire Plan Tier l; Prior to April 22, 2011 3% @ 50 5 years of service Monthly for life 50 3.00% 9.0% 35.570% Safety Police Plan Tier I' Prior to April 22, 2011 3% @ 50 5 years of service Monthly for life 50 3.00% 9.0% 35.570% Tier 2` New Member on or after April 22, 2011 but prior to January 1, 2013 2.0% @ 60 5 years of service Monthly for life 50 1.092% to 2.418% 7.0% 31.545% Tier 2 New Member on or after April 22, 2011 but prior to January 1, 2013 3% @55 5 years of service Monthly for life 50 2.4% to 3.0% 9.0% 35.570% Tier 2 New Member on or after April 22, 2011 but prior to January 1, 2013 3% @55 5 years of service Monthly for life 50 2.4% to 3.0% 9.0% 35.570% California Public Employees' Pension Reform Act of 2013 (PEPRA) PEPRA New Member on or after January 1, 2013 2.0%@62 5 years of service Monthly for life 52 1.0% to 2.5% 6.75% 12.757% PEPRA New Member on or after January 1, 2013 2.7%@57 5 years of service Monthly for life 50 2.0% to 2.7% 12.25% 24.095% PEPRA New Member on or after January 1, 2013 2.7%@57 5 years of service Monthly for life 50 2.0% to 2.7% 12.25% 24.095% California Public Employees' Pension Reform Act of 2013 ("PEPRA"), which was signed by the State Governor on September 12, 2012, established a new pension benefits for employees who were hired on and after January 1, 2013, who were not previously Ca1PERS members or have left employment with a Ca1PERS agency for more than 6 months. Employees hired prior to January 1, 2013 and have remained under continuous employment with a Ca1PERS agency are considered "Classic" employees. 8 251 of 324 PEPRA adjusted the benefit formulas, required employee contribution, calculation of benefits and maximum pay, as well as other benefits. PEPRA employees receive the following benefit formulas: (i) 2.0% at age 62 formula for Miscellaneous employees; and (ii) 2.7% at age 57 for Safety employees. Employees are required to pay at least 50% of the total (annual) normal cost rate, and are required to make the full amount of required employee contributions themselves under Benefits for such employees are calculated on the highest average annual compensation over a consecutive 36-month period. Retroactive benefits increases are also prohibited, as are contribution holidays, and purchases of additional non -qualified service credit. PEPRA also capped pensionable income as noted below. Maximum amounts are set annually, subject to adjustment in accord with the Consumer Price Index. The following table sets forth the maximum pensionable income for Classic and PEPRA employees of the City. City of National City Ca1PERS Pension Compensation Limits for Calendar Year 2021 (Classic and PEPRA members) Maximum Pensionable Income Classic PEPRA $290,000 $153,671 The Maximum Pensionable income for PEPRA members employed at agencies that participate in Social Security is $128,059. Source: Ca1PERS Payroll Circular Letter 200-001-21. Additional employee contributions, limits on pensionable compensation and higher retirement ages for new members as a result of the passage of PEPRA are expected to reduce the City's unfunded pension lability and potentially reduce City contribution levels in the long term. Annual CalPERS Contributions The City is required to contribute the actuarially determined amounts necessary to fund benefits for its members. Employer contribution rates for all public employers are determined on an annual basis by the CalPERS actuary and are effective on the July 1 following notice of a change in the rate. Total plan contributions are determined through the CalPERS annual actuarial valuation process. The required employer contribution is comprised of a Normal Cost component and a component equal to an amortized amount of the unfunded liability or Annual Unfunded Accrued Liability ("UAL") Payment. The Normal Cost is the annual cost of service earned by active employees for the upcoming Fiscal Year. The Annual UAL Payment is the amortized dollar amount needed to fund past service credit earned (or accrued) for members who are currently receiving benefits, active members, and for members entitled to deferred benefits, as of the valuation date. The UAL is a fixed dollar annual payment that can be paid in monthly installments or prepaid at the beginning of the fiscal year to receive a discount on the annual amount owed. The City's policy is to prepay its UAL. The City's pension cost contributions to Ca1PERS fluctuate each year. Many assumptions are used to estimate the ultimate liability and the contributions that will be required to meet those obligations.. See "— Potential Impacts on Future Required Contributions." Normal Costs The employer normal cost contributions are based on a percentage of payroll. Actual Normal Cost Contributions are based on the Employer Contribution Rate for each Benefit Plan and the actual payroll for employees covered under each respective plan. The Normal Cost Contribution for Fiscal Year 2022-23 is summarized in the following table, which is based on projected payroll estimated by CalPERS. 9 252 of 324 City of National City Normal Cost Contribution as a Percentage of Payroll Fiscal Year 2022-23 Miscellaneous Plan Safety Plan Total Normal Cost Rate 18.76% 31.00% Employee Contribution Rate(1) 7.59% 10.43% Employer Contribution Rate) 11.17% 20.57% Projected Payroll $12,253,198 $ 14,206,997 Employer Required Contribution $5,074,534 $ 9,138,726 For classic members, this is the percentage specified in the Public Employees' Retirement Law, net of any reduction from the use of a modified formula or other factors. For PEPRA members, the member contribution rate is based on 50 percent of the normal costs. A development of PEPRA member contribution rates can be found in the "Liabilities and Contributions" section of each respective actuarial report. Employee cost sharing is not shown in the actuarial reports. (2) The Employer Normal Cost is a blendedrate for all benefit groups in the plan. For a breakout of normal cost by benefit group, see "Normal Cost by Benefit Group" in the "Liabilities and Contributions" section of each respective actuarial report. Source: Ca1PERS Annual Valuation Reports as of June 30, 2020, dated July 2021. On December 21, 2016, the Ca1PERS Board of Administration voted to lower its discount rate from the current rate of 7.50% to 7.00%. The reduction of the discount rate resulted in an increase of approximately 1% to 3% to the normal cost rate as a percentage of payroll for most retirement plans over the past few years. The projected normal cost rates in the future are projected to decline over time as Classic employees retire and new employees are hired into PEPRA or other similar lower cost benefit tiers. Unfunded Accrued Liability Payments Ca1PERS has notified the City as to the amount of the Pension Liability based on the June 30, 2020 actuarial valuation, which is the most recent actuarial valuation performed by Ca1PERS for the City's Miscellaneous Plan and Safety Plan. The actuarial report for the Miscellaneous Plan incorporates the Tier 1, Tier 2 and PEPRA plan for Miscellaneous employees. The actuarial report for the Safety Plan incorporates the Tier 1, Tier 2 and PEPRA plan for Fire and Police Sworn Officers. City of National City Unfunded Accrued Liability of Ca1PERS Pension Plans As of June 30, 2020 Miscellaneous Plan Safety Plan Combined Entry Age Normal Accrued Liability $144,704,783 $226,287,330 $370,992,113 Market Value of Assets (MVA) 102,023,035 145,481,449 247,504,484 Unfunded Accrued Liability (UAL) $ 42,681,748 $ 80,805,881 $123,487,629 Percentage of Accrued Liability Funded 70.5% 64.3% 66.7% Source: CaIPERS Annual Valuation Reports as of June 30, 2020, dated July 2021. There is a two-year lag between the valuation date and the start of the contribution fiscal year calculated by that actuarial study. The unfunded accrued liability ("UAL") was determined in the June 30, 2020 actuarial valuation, but the corresponding UAL Payments commence two years after the valuation date in Fiscal Year 2022-23. As of , 2021, the projected UAL is equal to $42,681,748 for the Miscellaneous Plan and $80,805,881 for the Safety Plan, resulting in a combined total of $123,487,629. 10 253 of 324 The UAL is comprised of a series of amortization bases. The Miscellaneous Plan currently has 27 amortization bases and the Safety Plan also currently has 24 amortization bases. Each amortization base has as stated balance/(credit), amortization period, and discount and escalation rate, which results in an individual amortization schedule. Potential Impacts on Future Required Contributions The CalPERS Board of Administration has adjusted and may in the future further adjust certain assumptions used in the Ca1PERS actuarial valuations, which adjustments may increase the City's required contributions to Ca1PERS in future years. Accordingly, the City cannot provide any assurances that the City's required contributions to Ca1PERS in future years will not significantly increase (or otherwise vary) from any past or current projected levels of contributions. Change in Assumptions/Discount Rate. On December 21, 2016, the CalPERS Board of Administration voted to lower its discount rate from the then current rate of 7.50% to 7.00% over a three-year period. The change was reflected in the June 30, 2016 actuarial report, which lowered the discount rate from 7.50% to 7.375%; in the June 30, 2018 actuarial report, which lowered the discount rate from 7.375% to 7.25%; and in the June 30, 2017 actuarial report, which lowered the discount rate from 7.25% to 7.00%. The announcement on July 12, 2021 that Ca1PERS achieved preliminary investment returns of 21.3% could cause the CalPERS Board of Administration to lower CalPERS' discount rate from 7.00% to 6.80% in accordance with a risk mitigation policy that was adopted in 2015, which calls for the discount rate to be lowered if returns exceed the then -current discount rate by two or more percentage points. There can be no assurance as to whether or when the Ca1PERS Board of Administration will consider lowering the discount rate. Investment Performance. CalPERS earnings reports for Fiscal Years 2010 through 2020 report investment gains of approximately 13.3%, 21.7%, 0.1%, 13.2%, 18.4%, 2.4%, 0.6%, 11.2%, 8.6%, 6.7% and 4.7%, respectively. On July 12, 2021, CalPERS announced preliminary investment gains of approximately 21.3% for Fiscal Year 2021. Future earnings performance may increase or decrease future contribution rates for plan participants, including the City. GASB 68 Pension Information Provided in the Audited Financial Statements The CalPERS website currently contains the most recent actuarial valuation reports for the City's Miscellaneous Plan and Safety Plan and other information that concerns benefits and other matters. The comprehensive annual financial reports of CalPERS are also available on CalPERS' Internet website at www.calpers.ca.gov. The textual reference to such Internet website is provided for convenience only. None of the information on such Internet website is incorporated by reference herein. The City cannot guarantee the accuracy of such information. The following information has been derived primarily from the City's Annual Financial Statements and Independent Auditor 's Report for the Year Ended June 30, 2020. This information has been produced by CalPERS, its independent accountants and its actuaries, for the purposes of GASB 68 (as such term is defined below) reporting. The financial figures reported in the City's audited financial statements are different from the CalPERS actuarial reports. No attempt has been made to reconcile the difference between the pension figures used for GASB 68 reporting requirements and the information provided in the most recent June 30, 2020 CalPERS actuarial report. Accounting and fmancial reporting by state and local government employers for defined benefit pension plans is governed by Governmental Accounting Standards Board ("GASB") Statement No. 68 ("GASB 68"). GASB 68 governs the accounting treatment of defined benefit pension plans, including how expenses and liabilities are calculated and reported by state and local government employers in their financial statements. 11 254 of 324 GASB 68 includes the following components: (i) unfunded pension liabilities are included on the employer's balance sheet; (ii) pension expense incorporates rapid recognition of actuarial experience and investment returns and is not based on the employer's actual contribution amounts; (iii) lower actuarial discount rates are required to be used for underfunded plans in certain cases for purposes of the financial statements; (iv) closed amortization periods for unfunded liabilities are required to be used for certain purposes of the financial statements; and (v) the difference between expected and actual investment returns will be recognized over a closed five-year smoothing period. GASB 68 affects the City's accounting and reporting requirements, but it does not change the City's pension plan funding obligations. In accordance with GASB 68, the City's Miscellaneous Plan had a total net pension liability of approximately $ (measured as of June 30, 2019) and the City's Safety Plan had a total net pension liability of approximately $ (measured as of June 30, 2019). The net pension liability is the difference between the total pension liability and the fair market value of pension assets. The City's total pension assets include funds that are held by Ca1PERS, and its net pension asset or liability is based on such amounts. For Fiscal Years 2017-18, 2018-19 and 2019-20, the City incurred Miscellaneous Plan pension expenses of $5,402,775, $5,966,188 and $ , respectively, and Safety Plan pension expenses of $7,906,795, $9,430,850 and $ , respectively. A summary of principal assumptions and methods used to determine the total pension liability for Fiscal Year 2019-20 is shown below. City of National City Actuarial Assumptions for Ca1PERS Pension Plans Valuation Date Measurement Date Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Salary Increases Mortality(') Post Retirement Benefit Increase (I) [TO BE REVISED] Miscellaneous June 30, 2018 June 30, 2019 Safety June 30, 2018 June 30, 2019 Entry Age Normal in Accordance with the Requirements of GASB 68 7.15% 7.15% 2.75% 2.75% Varies by Entry Age and Service Derived using Ca1PERS' Membership Data for all Funds Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter The mortality table used was developed based on Ca1PERS-specific data. The table includes 15 years of mortality improvements using the Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on Ca1PERS demographic data from 1997 to 2015) that can be found on the Ca1PERS website. Source: City. 12 255 of 324 The City's net pension liability is measured as the proportionate share of the net pension liability. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability as of the measurement period June 30, 2020 is set forth below: City of National City Changes in Ca1PERS Pension Plans Net Pension Liability Miscellaneous Plan Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (Asset) Balance at June 30, 2019 (Valuation Date) $ $ $ Changes during the year: Service Cost Interest on the Total Pension Liability Differences between Expected and Actual Experience Contributions — Employer Contributions - Employees Net Investment Income Benefit Payments, including Refunds of Employee Contributions Administrative Expense Other Miscellaneous Income/(Expense) Net Changes Balance at June 30, 2020 (Measurement Date) Source: City. 41.1k. City of National City Changes in Ca1PERS Pension Plans Net Pension Liability Public Safety Plan $ $ Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability (Asset) Balance at June 30, 2019 (Valuation Date) $ $ $ Changes during the year: Service Cost $ $ $ Interest on the Total Pension Liability Differences between Expected and Actual Experience Contributions - Employer Contributions - Employees Net Investment Income Benefit Payments, including Refunds of Employee Contributions Administrative Expense Other Miscellaneous Income/(Expense) Net Changes Balance at June 30, 2020 (Measurement Date) $ $ $ Source: City. The table below presents the net pension liability of the City's pension plans, calculated using the discount rate applicable to Fiscal Year 2019-20 (7.15%), as well as what the net pension liability would be if it 13 256 of 324 were calculated using a discount rate that is 1 percentage point lower (6.15%) or 1 percentage point higher (8.15%) than the Fiscal Year 2019-20 rate: City of National City Sensitivity of the Ca1PERS Pension Plans Net Pension Liability to Changes in the Discount Rate 1% Decrease Net Pension Liability Current Discount Rate Net Pension Liability 1% Increase Net Pension Liability Source: City. Miscellaneous $ 6.15% 7.15% 8.15% Safety 6.15% 7.15% 8.15% The City is currently unable to quantify the effect of the COVID-19 outbreak on its pension obligations in the future and no assurance can be provided that such expenses will not increase as in the future a result of the COVID-19 outbreak or other factors. See the captions "THE CITY—COVID-19 Pandemic" and "RISK FACTORS —Impacts and Potential Impacts of COVID-19 on the City." For additional information relating to the City's pension plans, see Note 10 to the City's audited financial statements set forth in Appendix A and Ca1PERS' internet website at www.calpers.ca.gov for Ca1PERS' most recent actuarial valuation reports and other information that concerns benefits and other matters, which information on Ca1PERS' website is not incorporated herein by reference. PLAN OF REFINANCING On June 15, 2021, the Court entered the Validation Judgment to the effect, among other things, that: (i) the Trust Agreement is a valid, legal and binding obligation of the City and the approval thereof was in conformity with applicable provisions of law; and (ii) the City has the authority under State law to provide for the refunding of its Pension Liability and its normal annual contributions for the current fiscal year by issuing the Bonds and applying the proceeds of the Bonds to the retirement of its Pension Liability and payment of its current year normal annual contributions. On July 15, 2021, the Validation Judgment became binding and conclusive in accordance with State law. See the caption "VALIDATION." The Bonds are being issued to finance a portion of the rolled forward Pension Liability as of June 30, 2019 as projected by CaIPERS. Upon the issuance of the Bonds, the City will pay $ * to Ca1PERS for deposit to the Ca1PERS Payment Fund. With this deposit, the City will not be required to make any further payments to Ca1PERS with respect to the portion of the Pension Liability refinanced by the Bonds. It is possible that Ca1PERS will determine at a future date that an additional Pension Liability exists if actual pension plan experience differs from the current actuarial estimates. The City will continue to make payments towards the remaining Pension Liability. The City may choose to pay such remaining or additional Pension Liability consistent with current procedures, or the City could choose to issue Additional Bonds at some time in the future and apply the proceeds to pay the remaining Pension Liability. Preliminary, subject to change. 14 257 of 324 DEFERRAL OF PENSION LIABILITY PAYMENTS The City will issue the Bonds in order to reduce the financial impact of the increasing future annual Pension Liability payments due to Ca1PERS. The Bonds are expected to lower these payments over the term of the Bonds. However, the amount of savings can be impacted by the timing of the sale of the Bonds and Ca1PERS investment performance during the term of the Bonds. The net financial impact of issuing the Bonds cannot be fully assessed until the Bonds have matured. ESTIMATED SOURCES AND USES OF FUNDS The proceeds to be received from the sale of the Bonds are estimated to be applied as set forth below. Sources Principal Amount of Bonds $ Total Sources $ Uses Funding of Pension Liability (1) Costs of Issuance (2) Total Uses $ (1) Deposit to Ca1PERS Payment Fund. See the caption "PLAN OF REFINANCING." (2) Includes Underwriter's discount, fees of rating agencies, Municipal Advisor, Bond Counsel, Disclosure Counsel and Trustee, printing costs and other costs of issuance. [Remainder of page intentionally left blank] 15 258 of 324 FISCAL YEAR DEBT SERVICE REQUIREMENTS The following table sets forth scheduled debt service on the Bonds, assuming no optional redemptions prior to maturity. Year Ending June 30* 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Total * Preliminary, subject to change. Source: Underwriter. General City of National City Debt Service Schedule Principal Interest THE CITY Total The City is located in the County of San Diego (the "County") with its western border adjacent to San Diego Bay, five miles south of downtown San Diego and twelve miles north of the Mexican border. The City encompasses approximately 9.2 square miles and has an estimated 2021 population of 62,000. The City was incorporated as a general law city on September 17, 1887 and operates under the council/manager form of government. The City is governed by a five -member council consisting of four members elected at large for four-year overlapping terms and a Mayor, elected at large. The residents of the City elect the City Treasurer and the City Clerk. The position of City Manager is filled by appointment by the City Council. 16 259 of 324 Municipal services provided include police, fire, parks and recreation, library, planning & building, housing programs, street and drainage construction and maintenance, and sewer services. Government and Administration The City has 331 full time equivalent positions as of July 1, 2021. Of those positions, approximately 275 employees are represented by one of three bargaining units. Relations between the City and the employee bargaining units are governed by memoranda of understanding, which expire on December 31, 2021. Negotiations are currently underway to develop new agreements with the three bargaining units. A total of approximately 49 management and confidential employees are exempt from collective bargaining. The City has seven elected officials and also employs a varying number of people on an as needed hourly basis. Salaries for exempt employees are set by the City Council. The City has never experienced a strike, slowdown or work stoppage. The City Council members and the expiration dates of their respective terms are as follows: Name Office Term Expires Alejandra Sotelo-Solis Mayor December 2022 Jose Rodriquez Vice Mayor December 2024 Marcus Bush Councilmember December 2024 Ron Morrison Councilmember December 2022 Mona Rios Councilmember December 2022 The City Council employs a City Manager to carry out its policies, to serve as executive officer of the City and to supervise the work of other City administrators. The names and backgrounds of the City Manager and the Assistant City Manager are set forth below. Brad Raulston was appointed City Manager in May 2019. Mr. Raulston is a San Diego native and has worked for the City for 15 years. Previously he worked in the private sector for several land use and development companies in the San Diego region. Mr. Raulston currently works with many local non -profits including Olivewood Gardens, Habitat for Humanity, and ARTS (A Reason to Survive). Mr. Raulston earned a degree in Economics and Political Science from UC Berkeley and holds a Masters of Public Administration from San Diego State University. Tony Winney has served as the Assistant City Manager since January 2020. Mr. Winney has over 20 years of experience in local government, leading teams involving budgeting, redevelopment, public works, economic development, and labor negotiations. Mr. Winney also serves on a variety of boards, including as the 2020 Cal-ICMA President, and as a member of the Municipal Management Association of Southern California (MMASC) Board. He has a Master's degree in Public Administration from San Diego State University. Risk Management Workers' Compensation. The City is self -insured for workers' compensation claims up to $500,000 per occurrence. Claims between the self -insured retention level of $500,000 and $5,000,000 are covered by CSAC Excess Insurance Authority's (the "CSAC-EIA", renamed "PRISM" effective January 1, 2020) Excess Workers' Compensation Program. As of June 30, 2020, there are [174] member entities participating in the program that offers per occurrence coverage up to $5,000,000 through pooled resources and from $5,000,000 to statutory limits via group purchased excess insurance policies, including excess coverage, a total $100 million. Claims in excess of $5,000,000 up to $50,000,000 are covered by PRISM which is reinsured by ACE American Insurance Company. Any statutory benefit in excess of $50,000,000 is covered by Liberty Insurance Corporation. There is no statutory limit for benefits paid on Workers' Compensation Claims. 17 260 of 324 Property Coverage. The City carries insurance coverage for property damage through PRISM. The PRISM property damage coverage includes $— million per occurrence all risk coverage, with an all risk deductible of $ , with a deductible of $ for vehicles valued over $ . Flood coverage sub -limit $ million shared limit, $ self -insured retention per occurrence. Public Liability. The City maintains a $ self -insured retention and purchases excess coverage from PRISM to $ along with the additional Optional Excess Liability of $ for a total of $ Crime Coverage. The City maintains crime coverage of $ million per occurrence, with $ million excess coverage and a $ deductible per occurrence. Cyber Liability. The City insures to $ million with an aggregate limit for all member agencies of $— million, and a $ deductible per claim. [Pollution Liability. The City is covered to $— million with a $_ million aggregate limit applicable to its 3 year policy term. The pollution policy's self -insured retention is $ per pollution condition.] Claims have not exceeded the City's insurance coverage in any of the last [three] years. The Trust Agreement does not require the City to maintain insurance coverage in any particular amount or with respect to any particular risks. No assurance can be given as to the adequacy of the insurance that is maintained now or in the future by the City to fund necessary repairs or replacement of any portion of City facilities. Significant damage to City facilities or liability imposed upon the City could negatively affect City operations and finances. See the caption "RISK FACTORS —Natural Disasters." COVID-19 Pandemic The spread of the novel strains of coronavirus collectively called SARS-CoV-2, which causes the disease known as COVID-19 ("COVID-19"), and local, State and federal actions in response to COVID-19, have impacted the City's operations and finances. The World Health Organization has declared the COVID- 19 outbreak to be a pandemic and, on March 13, 2020, the President declared a national emergency, freeing up funding for federal assistance to state and local governments. On March 27, 2020, the President signed the $2.2 trillion Coronavirus Aid, Relief, and Economic Stabilization Act (the "CARES Act"), which provided, among other measures, $150 billion in financial assistance to states, tribal governments and local governments to provide emergency assistance to those most significantly impacted by COVID-19. Under the CARES Act, local governments were eligible for reimbursement of certain costs which were expended to address the impacts of the pandemic. The City received a total reimbursement of $32.4 million under the CARES Act. The funds received by the City under the CARES Act are not available for payment of debt service on the Bonds and cannot be used to backfill any City revenue losses related to COVID-19. On December 27, 2020, the President signed the $900 billion Coronavirus Response and Relief Supplemental Appropriations Act. Although the act did not provide additional financial assistance to state and local governments, it did extend the deadline (to October 2021) for them to use unspent funds that were previously approved under the CARES Act. On March 11, 2021, the President signed the American Rescue Plan Act of 2021 (the "ARP Act"), a $1.9 trillion economic stimulus package designed to help the United States' economy recover from the adverse impacts of the COVID-19 pandemic. The ARP Act includes approximately $350 billion in aid to state and local governments such as the City, consisting of both direct funding from the United States Department of Treasury and program moneys that will flow from other federal agencies. Half of the aid to state and local governments was distributed in spring 2021, with the other half scheduled for 2022. The City has been 18 261 of 324 allocated a total of approximately $128.4 million. This funding is available for a broad range of uses, including responding directly to the health emergency, addressing its negative economic impacts with assistance to households and small businesses, restoring government services that were reduced in response to pandemic -related revenue losses and making certain necessary infrastructure improvements. On June 15, 2021, the City Council appropriated $79.5 million within five broad spending categories. The appropriation includes the first 50% or $64.2 million allocation and $15.3 million of an additional ARP allocation specifically restricted to emergency housing assistance. The State also took various actions. On March 4, 2020, as part of the State's response to address the outbreak, the Governor declared a state of emergency. On March 19, 2020, the Governor issued a mandatory Statewide shelter -in -place order applicable to all non -essential services. A phased re -opening of various sectors in the State began in mid-2020 and the economy was fully reopened on June 15, 2021. In addition, the Governor extended the deadline to file and pay spring 2020 property taxes for residential and certain commercial property owners and first quarter 2020 sales and use tax returns by 90 days for all but the very largest taxpayers. As a result of the extended deadline to file sales and use tax returns, it is estimated that up to 361,000 California businesses with less than $5 million in taxable annual sales were permitted to defer up to $50,000 in sales tax and enter into 12-month payment plans at zero interest. These actions have resulted in delays in the receipt by the City of its portion of such tax payments. The effects of the COVID-19 outbreak and governmental actions responsive to it have altered the behavior of businesses and people in a manner that is having significant negative impacts on global and local economies. In addition, financial markets in the United States and globally have experienced significant volatility attributed to COVID-19 concerns. Volatility in the financial markets caused CaIPERS' earnings to fall below its investment targets in Fiscal Year 2020, which could result in increases in the City's unfunded pension liability and future pension costs commencing in Fiscal Year 2021. See the caption "CITY PENSION PLANS." The outbreak has resulted in increased pressure on State finances as budgetary resources are directed towards containing the pandemic and tax revenues sharply decline. Identified cases of COVID-19 and deaths attributable to the COVID-19 outbreak continue to occur throughout the United States, including the County. The City has abided by the federal, State, and County restrictions and guidance during this pandemic. To date, the general fund has not experienced any significant adverse impacts to its finances, in part due to the CARES Act and to greater than expected sales and use tax and district tax revenues received for Fiscal Year 2020-21. The City cannot predict future events relating to the pandemic. There can be no assurances that COVID-19 will not materially adversely impact the City's fmancial condition in the future. See the caption " Budget Procedure, Current Budget and Historical Budget Information" for a discussion of the City's fiscal year 2021-22 Adopted Budget and the ongoing and potential impacts of COVID- 19 on City finances. CITY FINANCIAL INFORMATION Accounting and Financial Reporting The basic fmancial statements of the City are prepared in conformity with accounting principles generally accepted in the United States ("GAAP") as applied to governmental agencies. GASB is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in 19 262 of 324 demonstrating compliance with finance -related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements. The Government -Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental and business -type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and deferred outflows as well as liabilities and deferred inflows, with the difference reported as net position are presented in the Statement of Net Position. The Statement of Net Position also presents capital assets including infrastructure assets as well as long-term liabilities. Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Certain types of transactions are reported as program revenues for the City in three categories: (i) charges for services, (ii) operating grants and contributions and (iii) capital grants and contributions. All governmental funds, such as the City's General Fund (the "General Fund"), are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheet. The statement of revenues, expenditures, and changes in fund balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balances. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues become available when received in cash, except for revenue which is subject to accrual and are recognized when due by the City, generally 60 days after year-end for primary revenue sources (i.e. property tax, sales tax, intergovernmental revenues and other taxes). Expenditures are recorded in the accounting period in which the related fund liability is incurred. Unavailable revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues arise when the government receives cash before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the government has legal claim to the resources, unavailable and unearned revenue is removed from the balance sheet and recognized as revenue. See the caption "—City Financial Statements" for a discussion of the City's audited financial statements for Fiscal Year 2019-20. The General Fund is the primary operating fund of the City. It is used to account for all revenues and expenditures that are not required to be accounted for in another fund. The tables below set forth certain historical and current Fiscal Year budget information for the General Fund. Information on the remaining governmental funds of the City as of June 30, 2020, is set forth in Appendix A. City Financial Policies and Practices Fiscal Policies. Chapter 2.55 of the National City Municipal Code governs the development, adoption and maintenance of the City's budget. In addition, several policies form the framework within which the City's operating budget is formulated and resource allocation decisions are made. These policies may be changed by future actions of the City Council. These policies are summarized below: General. The City's annual budget will be balanced whereby planned expenditures do not exceed available resources. The budget is developed in the context of the priorities established in the City's Strategic Plan that is updated every two years. 20 263 of 324 Budgetary Controls. The City maintains budgetary controls at the individual fund level, at the expenditure category level within each department and fund for operational activities, and at the project level for capital projects. General Fund status reports reflecting comparisons of actual and projected performance with budget allocations for both revenues and expenditures are presented to the City Council on a quarterly basis. Reserves. The City maintains reserves to strengthen the City's ability to withstand unexpected financial emergencies and to accumulate funds for large-scale purchases. These reserves are described in City Council Policy #201, Maintenance of Reserves. The most significant of these reserves with respect to the General Fund and their target levels are as follows: General Fund Economic Contingency Reserve: an amount equal to twenty percent (20%) of a single year's General Fund budgeted operating expenditures. Formal City Council action is required to increase the balance in the reserve or to authorize the use of any portion of its balance. This reserve is intended to be used in the event of a catastrophic event or significant downturn in the economy that cannot be mitigated with other funding sources. General Fund Unassigned Fund Balance: an amount equal to ten percent (10%) of a single year's General Fund budgeted operating expenditures. Amounts in excess of the target level will be used to increase or replenish other reserves, to set aside resources for specific one-time uses, or as a funding source for one- time expenditures included in the annual budget. Facilities Maintenance Reserve: an amount equal to three times the annual amount budgeted to provide major maintenance for the City's building assets. The annual amount to be budgeted for major maintenance projects is 1.5% of the City's General Fund operating budget. Formal City Council action is required to increase the balance in the reserve or to authorize the use of any portion of its balance. This reserve is to be used for extraordinary major maintenance costs that cannot be met within the annual budgeted amount and for which no other funding source is available. General Liability Insurance Reserve: an amount of assets in the Liability Insurance Fund (an internal service fund) sufficient to meet the eighty percent (80%) confidence level of adequacy for net claims liability as updated annually by the City's actuary. Workers' Compensation Reserve: an amount of assets in the Liability Insurance Fund (an internal service fund) sufficient to meet the eighty percent (80%) confidence level of adequacy for net claims liability as updated annually by the City's actuary. Irrevocable Supplemental Pension Trust Reserve: an amount equal to two years of unfunded liability payments as determined by the most current Ca1PERS valuation reports for both the Safety and Miscellaneous plans. The assets of this reserve are held in an irrevocable Section 115 pension trust that may be used only for pension related costs and upon direction of the City Council. Irrevocable Other Post -Employment Benefits Trust Reserve: an amount equal to eighty percent (80%) of the total net other post -employment benefits (OPEB) liability of the City's OPEB plan. Under the plan, the City provides payments to City retirees to be used towards medical insurance premiums. Vehicle Replacement Reserve: an amount equal to thirty percent (30%) of the recorded (book) value of the motor vehicles and associated assets accounted for in the Vehicle Replacement Fund (an internal service fund). Internal service fund charges to benefitting departments provide the mechanism for building the reserves in the fund. All of the reserves described above are expected to be at or above their target balances as of June 30, 2021 except for the Pension Trust, OPEB Trust, and Vehicle Replacement Reserve. 21 264 of 324 Pension Funding Policy. City Council Policy #202, Pension Funding Policy, was adopted by the City Council on September 7, 2021. It is the policy of the City to annually make the actuarially determined contributions to CaIPERS, to prepay the annual UAL amount, maintain a pension stabilization fund in the form of a Section 115 trust, achieve and maintain a funded status for each of the City's pension plans of between 80% and 100%, to make additional discretionary payments when reserve levels and budgetary requirements so allow, and to issue pension obligation bonds upon the determination that the cost to borrow the funds for the payment is less than continuing to make the projected prescribed UAL payments at the current discount rate. Debt Management Policy. City Council Policy #206, Debt Management, guides the City's approach to incurring debt to finance certain City projects, which will generally be for large capital projects that cannot be completed on a pay as you go basis. The policy also allows for the issuance of debt such as pension obligation bonds, where financial benefits are significantly greater than the costs and where the benefits are determined to be a financially prudent option. The City has limited debt obligations, the most significant of which are the $4.885 million general obligation refunding bond issued in 2012 to lower debt service payments on the general obligation bond issued in 2003 to construct the City's library and the $5.5 million lease financing in 2017 used to finance the City's energy and water conservation project. Cash Management Policy. City Council Policy #203, Investments, provides the guidance for management of the City's cash. It is reviewed annually and updated as necessary. The general objectives are to maintain the safety of the principal while providing sufficient liquidity for operations and attaining a market rate of return. The City participates in the State of California's Local Agency Investment Fund (LAIF) and the County of San Diego Treasurer's Pooled Money Fund while placing some funds in a portfolio managed by a professional investment manager. Five -Year Strategic Plan. During fiscal year 2020, City management reviewed and updated the City's five-year strategic plan. The strategic plan is approved by the Council every two years. Its purpose is to: • establish a long-range vision and direction for the City; • ensure all participants are working toward the same goals and objectives; • assess/adjust the direction of the organization given the current (and changing) environment; • communicate goals and initiatives of the organization; and • provide a basis for developing a work plan to ensure the goals and initiatives of the Strategic Plan are carried out. Budget Procedure, Current Budget and Historical Budget Information General. The City's budget is created in conjunction with the City Council, City staff and City residents. The budget process includes the submittal of each department's budget request for the next fiscal year, a detailed review of each department's proposed budget by the Department of Finance and the City Manager, and a preliminary budget being transmitted to the City Council for its review in a public workshop setting. More than one workshop may be scheduled depending upon the desire of the City Council. Following the workshop(s) and based on direction from the City Council, the proposed budget is prepared and placed on the agenda of a regularly noticed meeting of the City Council in June. The Council adopted the Fiscal Year 2021-22 budget on June 15, 2021. The adoption of the budget is accomplished by the approval of a Budget Resolution. The budget may be adjusted during the year subject to either City Council or City Manager approval depending upon the action needed. An increase in a department's total appropriation within a fund must be approved by the City Council when it involves a transfer from the contingency reserve, use of fund balance, or an appropriation of unanticipated or over -realized revenue identified to a specific source. There is no "floor" to the amount 22 265 of 324 requiring approval. A department may have appropriations in more than one fund but may not comingle those resources. The City Council has authorized the City Manager to make budgetary revisions between departments within a fund. All appropriations which are not obligated, encumbered or expended at the end of the Fiscal Year lapse and become a part of the unassigned fund balance which may be appropriated for the next Fiscal Year. Summary of General Fund Results and Budgets. [UPDATES TO COME] For Fiscal Year 2019-20 the General Fund reported $61.8 million in revenues and $59.2 million in expenditures. After accounting for net other financing sources of $_ million, the fund balance for the General Fund decreased by approximately $87 thousand. Total fund balance as of June 30, 2020 was $ million, composed of $ million in assets offset with $ million in liabilities and $ million in deferred inflows of resources. Total fund balance included $_ million of nonspendable, which represents that portion of fund balance that is not available for appropriation. Committed fund balance totaled $ million, including $_ million committed to various capital projects and $_ million committed for economic contingency. This portion of fund balance includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council and remains binding unless removed in the same manner. Assigned fund balance, totaling $ million, represents that portion of a fund balance that includes amounts that are constrained by the government's intent to be used for specific purposes, but that are neither restricted nor committed. The final component of total fund balance is unassigned fund balance. Totaling $ million, this is the portion of fund balance that is available for appropriation for any purpose. For Fiscal Year 2019-20 the General Fund reported $ million in revenues and $ million in expenditures. After accounting for net other financing sources of $ million, the fund balance for the General Fund increased by $ million primarily due to the increase in sales tax related to Measure A that went into effect that fiscal year. Total fund balance as of June 30, 2020 was $ million, composed of $ million in assets offset with $ million in liabilities and $ million in deferred inflows of resources. Total fund balance included $ million of nonspendable, which represents that portion of fund balance that is not available for appropriation. Committed fund balance totaled $ million, including $ million committed to various capital projects and $ million committed for economic contingency. This portion of fund balance includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council and remains binding unless removed in the same manner. Assigned fund balance, totaling $ million, represents that portion of a fund balance that includes amounts that are constrained by the government's intent to be used for specific purposes, but that are neither restricted nor committed. The fmal component of total fund balance is unassigned fund balance. Totaling $ million, this is the portion of fund balance that is available for appropriation for any purpose. The Fiscal Year 2021-22 adopted General Fund revenue budget is $ million. This reflects an increase of $ million or % when compared to Fiscal Year 2020-21 Adopted Budget revenues. General Fund revenues provide funding for essential City services, including police, fire, library services, and park and recreation programs. Property taxes account for % of the General Fund Revenue Budget. This revenue saw an increase of $ million or % over the Fiscal Year 2020-21 Adopted Budget. The City's other major revenue sources account for _% of the General Fund Revenue Budget and total $ million of the budget. The Fiscal Year 2021-22 Adopted Budget reflects positive growth in its revenue source, albeit a slower rate than previous years. The City has identified several one-time 23 266 of 324 Budget History. Set forth in Table 1 below are the General Fund budgets for Fiscal Years 2018-19 through 2021-22, and the audited General Fund results for Fiscal Years 2018-19 through 2019-20 and estimated results for Fiscal Year 2020-21. During the course of each fiscal year, the budget is amended and revised as necessary by the City Council; budgeted amounts shown below reflect such amendments and revisions in certain fiscal years. 267 of 324 Budgetary Fund Balance, July 1 Revenues: Taxes(2) Licenses and Permits Fines and Forfeitures Use of Money and Property Intergovernmental Charges for services Other revenues Total Revenues Expenditures: Current General Government Public Safety Transportation Community Development Health Culture and Leisure Capital Outlay Debt Service: Principal Retirement Interest and Fiscal Charges Transfers out Total Expenditures Budgetary Fund Balance, June 30(') Adopted Fiscal Year 2018-19 Budget $44,715,455 961,489 4,118,490 691,876 1,290,100 2,846,725 582 241 $5,520,6376 Table 1 City of National City General Fund Budgets and Results Audited Fiscal Year 2018-19 Results $50,110,898 $48,116,544 1,168,997 2,829,330 2,218,021 1,556,735 2,574,008 917,369 $59,381,004 $9,079,193 $10,117,845 38,526,340 36,628,711 3,655,625 3,544,045 877,129 465,058 4,055,992 3,859,145 16,507,489 4,373,137 672,162 365,732 315,419 213,011 $73,689,349 $59,566,684 $49,004,355 Adopted Fiscal Year 2019-20 Budget $46,952,893 793,339 1,498,650 649,000 1,359,000 3,109,879 781,957 $55,144,718 Audited Fiscal Year 2019-20 Results $49,015,847 $48,327,411 1,096,395 2,945,717 2,516,371 2,889,985 3,101,961 971,081 $61,848,951 $12,834,935 $9,237,733 40,199,561 38,573,445 3,950,113 3,319,634 492,357 477,457 99,528 4,244,085 3,666,563 6,450,595 3,343,679 256,013 342,616 206,224 206,224 $68,733,411 $59,167,351 $48,928,396 Adopted Fiscal Year 2020-21 Budget $45,888,700 801,575 506,500 796,050 226,000 3,170,643 683,460 $52,072,928 $ 6,111,396 38,877,364 3,543,006 237,671 3,682,664 975,430 Estimated Fiscal Year 2020-21 Results Sources: Adopted budgets of the City for Fiscal Years 2018-19 through 2021-22; audited financial statements of the City for Fiscal Years 2018-19 and 2019-20 and City for Fiscal Year 2020-21. 25 Adopted Fiscal Year 2021-22 Budget $50,537,610 808,454 248,500 800,200 226,000 3,341,562 790,891 $56,753,217 $ 6,481,628 39,688,756 3,655,150 231,175 3,494,533 2,925,430 268 of 324 Change in Fund Balance of the City General Fund Set forth in Table 2 below are the City's audited General Fund statements of revenues, expenditures and changes in fund balance for Fiscal Years 2016-17 through 2019-20 and the City's estimated General Fund statement of revenues, expenditures and changes in fund balance for Fiscal Year 2020-21 based on available information to date. Table 2 City of National City General Fund Statement of Revenues, Expenditures and Changes in Fund Balances Fiscal Year Ended June 30, 2017 2018 2019 2020 2021 Revenues Taxes(1) $43,147,199 $44,698,296 $48,116,544 $48,327,441 Licenses and Permits 1,021,807 1,169,216 1,168,997 1,096,395 Fines and Forfeitures 557,298 554,211 2,829,330 2,945,717 Use of Money and Property 912,238 991,103 2,218,021 2,516,371 Intergovernmental 741,626 2,357,306 1,556,735 2,889,985 Charges for Services 2,849,983 3,283,420 2,574,008 3,101,961 Other Revenues 2,392,876 1,770,574 917,369 971,081 Total Revenues $51,623,027 $54,814,126 $59,381,004 $61,848,951 Expenditures Current General Government $5,496,254 $8,558,000 $10,117,845 $ 9,237,733 Public Safety 34,099,431 36,405,839 36,628,711 38,573,445 Transportation 3,123,771 3,324,708 3,544,045 3,319,634 Community Development 268,929 418,845 465,058 477,457 Health Culture and Leisure 3,764,416 3,852,718 3,859,145 3,666,563 Capital Outlay 4,264,238 4,006,575 4,373,137 3,343,679 Debt Service: Principal Retirement 215,893 672,162 365,732 342,616 Interest and Fiscal Charges 27,354 315,419 213,011 206,224 Total Expenditures $51,260,286 $57,554,266 $59,566,684 $59,167,351 Excess (Deficiency) of Revenues Over (Under) Expenditures 362,741 (2,740,140) (185,680) 2,681,600 Other Financing Sources (Uses) Proceeds from the sale of property 58,474 Loss on sale of land held for resale 65,966 (589,700) Pass -through payment to other agencies (705,115) (631,285) Transfers In 519,671 4,456,948 5,500 Transfers Out (1,972,835) (920,863) (1,553,566) Total Other Financing Sources (Uses) (2,033,839) 4,456,948 (920,863) Net Change in Fund Balances (1,671,098) 1,716,808 (1,106,543) (87,451) Fund Balances — Beginning of Year, as previously reported $48,394,090 $50,110,898 $49,004,355 Restatements 11,492 Fund Balances Beginning of Year, as restated $50,060,188 49,015,847 Fund Balances — End of Year $48,394,090 $50,110,898 $49,004,355 $48,928,396 (1) See the caption "—Tax Revenues of the City" for a breakdown of tax revenues for the past five Fiscal Years. Source: Audited financial statements of the City for Fiscal Years 2016-17 through 2019-20; City for Fiscal Year 2020-21. 26 269 of 324 General Fund Balance Sheets of the City Set forth in Table 3 below are the City's audited General Fund balance sheets for Fiscal Years for Fiscal Years 2016-17 through 2019-20 and estimated General Fund balance sheet for Fiscal Year 2020-21. Table 3 City of National City General Fund Balance Sheet Summary Fiscal Year Ended June 30, 2017 2018 2019 2020 Assets: Cash and Investments $39,749,905 $38,524,469 $39,220,556 $30,216,442 Receivables: Accounts 1,368,445 1,521,364 1,196,303 2,184,135 Taxes 4,518,646 4,988,297 5,533,083 5,198,287 Interest 123,062 209,115 358,672 131,503 Loans Due from other Funds 1,899,845 2,075,945 2,339,733 4,382,482 Due from other Governments 62,683 140,636 245,279 213,530 Advances to other funds 4,941,000 4,941,000 Inventories and prepaid items 28,634 31,547 16,085 17,317 Land held for resale 4,994,182 4,994,182 4,994,182 3,909,182 Investment in Section 115 Trust 1,749,740 9,537,721 Total Assets $57,686,402 $57,426,555 $55,653,633 $55,790,599 Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts Payable $2,224,757 $2,421,877 $2,064,921 $2,889,110 Due to other Governments 701,957 4,293 323,647 Accrued Liabilities 1,478,819 1,352,612 1,795,843 1,727,163 Due to Other Funds Deposits 11,419 11,419 11,419 118,052 Unearned Revenue 4,875,360 3,529,749 2,772,802 1,804,231 Total Liabilities $9,292,312 $7,315,657 $6,649,278 $6,862,203 Fund Balances Nonspendable: $9,963,816 $9,966,729 $5,010,267 $3,926,499 Restricted 616,253 555,168 2,304,908 10,092,890 Committed 11,585,066 11,085,066 15,150,517 11,485,066 Assigned 14,325,683 15,772,642 12,865,120 7,129,273 Unassigned 11,903,272 12,731,298 13,673,543 16,294,668 Total Fund Balances $48,394,090 $50,110,898 $49,004,355 $48,928,396 Total Liabilities, Deferred Inflows of Resources, and Fund Balances $57,686,402 $57,426,555 $55,653,633 $55,790,599 2021 Source: Audited financial statements of the City for Fiscal Years 2016-17 through 2019-20 and City for Fiscal Year 2020-21. Tax Revenues of the City A summary of taxes and certain fees received by the City in the last four Fiscal Years and estimated for Fiscal Year 2020-21 is set forth in Table 4 below. Certain general taxes currently imposed by the City are affected by various State Constitutional provisions. See the caption "CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS." 27 270 of 324 Table 4 City of National City General Fund Major Tax Revenues and Fees by Source 2017 2018 2019 2020 20210) Property Tax Property Tax in Lieu of VLF Sales Tax Franchise Fees Utility Users Tax Business License Taxes Transient Occupancy Tax Real Property Transfer Taxes TOTAL (') Reflects unaudited actual Fiscal Year 2020-21 results; subject to change. Source: Audited financial statements of the City for Fiscal Years 2016-17 through 2019-20; City for Fiscal Year 2020-21. Sales Taxes [UPDATES TO COME] Fiscal Year 2019-20 sales tax receipts of $18.4 provided the largest tax revenue source for the City. Sales taxes contributed approximately X% of General Fund tax revenues and approximately X% of total General Fund revenues in Fiscal Year 2019-20 and Fiscal Year 2018-19 respectively. Based on unaudited actual Fiscal Year 2020-21 results, the City estimates Fiscal Year 2020-21 sales tax receipts to be $22.1 million. A sales tax is imposed on retail sales or consumption of personal property and collected and distributed by the California Department of Tax and Fee Administration (the "CDTFA"). The basic sales tax rate is established by the State Legislature, and local overrides may be approved by voters. The current sales tax rate in the City is 8.75%, which includes a 1% district transaction & use tax. Fiscal year 2020 was the fourteenth full year of collection of the City's 1% district transaction & use tax. The tax measure ("Proposition 'D') was approved by National City voters in June 2006 and became effective in October 2006. The initial measure was effective for a period of ten years; however, in November 2014, voters approved a measure to extend the tax for an additional twenty years. Fiscal Year 2019-20 receipts were $11.8 million and based on unaudited results for Fiscal Year 2020-21, the City estimates Fiscal Year 2020-21 district tax receipts to be $13.1 million. Additional information relating to sales tax receipts by the City is set forth in Appendix B. The City's Fiscal Year 2021-22 Budget reflects the receipt of approximately $20.4 million in sales and use tax revenues in Fiscal Year 2021-22, an increase of approximately $3.1 million (1.2%) from the Fiscal Year 2020-21 budgeted amount. Property Taxes Fiscal Year 2019-2020 property tax receipts of $ provided the second-largest tax revenue source for the City in Fiscal Year 2019-20. Property taxes contributed approximately % of General Fund tax revenues and approximately % of total General Fund revenues in Fiscal Year 2019-20. Based on unaudited actual Fiscal Year 2021 results, the City estimates Fiscal Year 2020-21 property tax receipts to be $[ ]. Property in the State which is subject to ad valorem taxes is classified as "secured" or "unsecured." The secured classification includes property on which any property tax levied by a county becomes a lien on that property. A tax levied on unsecured property may become a lien on certain other property owned by the 28 271 of 324 taxpayer. Every tax which becomes a lien on secured property has priority over all other liens arising pursuant to State law on the secured property, regardless of the time of the creation of other liens. The exclusive means of compelling the payment of delinquent taxes with respect to secured property is the sale of the property securing the taxes for the amount of taxes that are delinquent. The taxing authority has three methods of collecting unsecured personal property taxes: (1) filing a civil action against the taxpayer; (2) obtaining a judgment lien on certain property of the taxpayer from the county clerk or county recorder; and (3) seizing and selling personal property, improvements or possessory interests belonging or taxable to the assessee. A 10% penalty is added to delinquent taxes which have been levied with respect to property on the secured roll. In addition, beginning on the July 1 following a delinquency, interest begins accruing at the rate of 1.5% per month on the amount delinquent. If taxes are unpaid for a period of five years or more, the property is deeded to the State and then is subject to sale by the county tax collector. A 10% penalty also applies to the delinquent taxes or property on the unsecured roll, and further, an additional penalty of 1.5% per month accrues with respect to such taxes beginning on the varying dates related to the tax billing date. State law also provides for the supplemental assignment and taxation of property as of the occurrence of a change in ownership or completion of new construction. Collection of taxes based on supplemental assessments occurs throughout the year. Taxes due are prorated according to the amount of time remaining in the tax year. For a number of years, the State Legislature shifted property taxes from cities, counties and special districts to the Educational Revenue Augmentation Fund ("ERAF"). In Fiscal Years 1993 and 1994, in response to serious budgetary shortfalls, the State Legislature and administration permanently redirected over $3 billion of property taxes from cities, counties, and special districts to schools and community college districts pursuant to ERAF shifts. The Fiscal Year 2005 State Budget included an additional $1.3 billion shift of property taxes from certain local agencies, including the City, in Fiscal Years 2005 and 2006. On November 2, 2010, State voters approved Proposition 22, which: (i) prohibits the State of California from shifting or delaying the distribution of funds from special districts to schools and community colleges; (ii) eliminates the authority to shift property taxes temporarily during a severe fmancial hardship of the State; and (iii) restricts the State's authority to use fuel tax revenues to pay debt service on transportation bonds, to borrow or change the distribution of fuel tax revenues or to use vehicle license fee revenues to reimburse local governments for state -mandated costs. Despite the passage of Proposition 22, there can be no assurance that 1% ad valorem property tax revenues which the City currently expects to receive will not be temporarily shifted from the City or reduced pursuant to State legislation enacted in the future. If the property tax formula is permanently changed in the future, it could have a material adverse effect on the receipt of its share of 1% property tax revenues by the City. 29 272 of 324 Set forth in the table below are the secured and unsecured assessed valuations for property in the City for the Fiscal Years 2016-17 through 2020-21. Table 5 City of National City Assessed Valuation History (Dollars in Thousands) Fiscal Year Secured Value 2016-17 2017-18 2018-19 2019-20 2020-21 $3,387,351,133 3,672,726,251 3,829,026,571 4,095,333,248 4,362,850,380 Source: San Diego County Auditor Controller. Unsecured Value $202,882,492 211,412,407 230,130,428 235,795,668 247,956,350 Total Assessed Value $3,590,233,625 3,884,138,658 4,059,156,999 4,331,128,916 4,610,806,730 The California Redevelopment Law (Part 1 of Division 24 of the Health and Safety Code of the State) authorized the redevelopment agency of any city or county to receive an allocation of tax revenues resulting from increases in assessed values of properties within designated project areas (the "Incremental Value") occurring after the year the project area was formed. In effect, local taxing authorities, such as the City, realized tax revenue solely on the assessed value of such property at the time the redevelopment project was created for the duration of such redevelopment project. Although Assembly Bill No. 26 ("AB X126"), enacted on June 29, 2011 as Chapter 5 of the Statutes of 2011, statutorily dissolved redevelopment agencies continue to be paid from property taxes derived from Incremental Value until enforceable obligation are paid in full in accordance with Parts 1.8 (commencing with Section 34161) and 1.85 (commencing with Section 34170) of Division 24 of the California Health and Safety Code (as such statutory provisions may be amended from time to time, the "Dissolution Act"). The City has formed several redevelopment projects prior to the State's enactment of the Dissolution Act. Set forth in Table 6 below are the total assessed valuations and redevelopment agency incremental values for the Fiscal Years 2016-17 through 2020-21. Fiscal Year 2016-17 2017-18 2018-19 2019-20 2020-21 Table 6 City of National City Assessed Valuation History (Dollars in Thousands) Total Assessed Value° Redevelopment Agency Incremental Value Net Value (1) Includes redevelopment incremental valuation Source: Audited financial statements of the City for Fiscal Years 2016-17 through 2019-20; City for Fiscal Year 2020-21. Percent Change In the first year after redevelopment agencies were statutorily dissolved, the Dissolution Act established a process for determining the liquid assets that redevelopment agencies should have shifted to their successor agencies when they were dissolved, and the amount that should be available for remittance by the successor agencies to their respective county auditor -controller for distribution to affected taxing entities 30 273 of 324 within the project areas of the former redevelopment agencies. This determination process is commonly known as the "due diligence review proves" and was required to be completed through the final step (review by the State Department of Finance) by November 9, 2012 with respect to affordable housing funds and by April 1, 2013 with respect to non -housing funds. Generally, redevelopment agencies were required to remit to their respective county auditor -controller the amount of unobligated balances determined by the State Department of Finance. In turn, such remitted unobligated balances were distributed to taxing entities within the applicable redevelopment project area (including the City with respect to its redevelopment projects) in proportion to such taxing entity's share of property tax revenues in the tax rate area for the applicable fiscal year. The Dissolution Act also provides for proceeds of the sale of land owned by redevelopment agencies at the time of their statutory dissolution to be remitted to the applicable county auditor -controller for distribution to the affected taxing entities within the applicable redevelopment project area (including the City with respect to its redevelopment projects) in proportion to such taxing entity's share of property tax revenues in the tax rate area for the applicable fiscal year. Further, under the Dissolution Act, taxing entities with jurisdictions within a redevelopment project, such as the City, are to receive distributions (in proportion to such taxing entity's share of property tax revenues in the tax rate area for the applicable fiscal year) of residual amounts of property taxes attributable to Incremental Value of such redevelopment projects on each June 1 and January 2, after payment of: (i) tax sharing obligations established previously pursuant to the Community Redevelopment Law, (ii) enforceable obligations of the successor agency to the former redevelopment agency, and (iii) an administrative cost allowance to such successor agency. As enforceable obligations of the former redevelopment agency and its successor agency are paid and retired, residual amounts of property tax revenues attributable to redevelopment project area Incremental Value are expected to increase over time. Set forth in Table 6 below are property tax collections (including amounts that do not constitute General Fund money) and delinquencies in the City as of June 30 for Fiscal Years 2015-16 through 2019-20. The County has adopted the Alternative Method of Distribution of Tax Levies and Collections and of Tax Sale Proceeds (known as the "Teeter Plan"), as provided for in Section 4701 et seq. of the Revenue and Taxation Code of the State (under which the County pays the City 100% of property taxes due to the City regardless of actual collections). The County bills and collects property taxes and remits them to the City according to a payment schedule established by the County. The City does participate in the Teeter Plan. Table 7 City of National City Property Tax Levies and Collections Percent of Levy Taxes Collections Collected Collections Percent of Fiscal Year Levied for within the within the in Total Levy Ended the Fiscal Fiscal Year Fiscal Year of Subsequent Collections Collected to June 30 Year" of Levy Levy Years" to Date Date 2016 $3,205,191 $3,195,983 99.71% $1,564 $3,197,547 99.76% 2017 3,335,753 3,333,476 99.93 1,465 3,334,941 99.98 2018 3,619,238 3,601,115 99.50 2,008 3,603,123 99.55 2019 3,687,359 3,667,444 99.46 1,948 3,669,393 99.51 2020 3,896,676 3,890,504 99.84 1,868 3,892,372 99.89 (I) Levy amounts do not include supplemental taxes (2) Collection amounts represent delinquencies collected for all prior years during the current tax year. Total delinquent collections are reduced by any funds processed from prior year tax collections Source: Audited financial statements of the City for Fiscal Years 2015-16 through 2019-20. 31 274 of 324 The 10 largest secured and unsecured taxpayers in the City as shown on the Fiscal Year 2019-20 tax roll, the assessed valuation and the percentage of the City's total property tax revenues attributable to each are set forth in Table 8 below. Table 8 City of National City Principal Property Taxpayers Fiscal Year 2019-20 Rank Property Owner Assessed Valuation % of Total 1. Plaza Bonita LLC $ 272,841,155 9.77% 2. Pasha Automotive Services 79,314,317 2.84 3. P V H R LLC 65,512,758 2.35 4. H G Fenton Property Company 54,779,580 1.96 5. Costco Wholesale Corporation 47,165,953 1.69 6. National City Investment LP 44,477,100 1.59 7. R 0 I C California LLC 43,018,387 1.54 8. M G P X I U S Properties LLC 37,350,360 1.34 9. M R T of National City California S N F 35,804,484 1.28 10. MPT of Paradise Valley L P 33,948,384 1.22 TOTAL $ 714,212,478 25.59% Sources: HdL, San Diego County Assessor 2004/05-2013/14 Combined Tax Rolls and the SBE Non Unitary Tax Rolls. The City is currently projecting an increase of approximately [ ]% in property tax revenues in Fiscal Year 2021-22 above the Fiscal Year 2020-21 budgeted amount. However, an extended recession caused by the COVID-19 outbreak could impact assessed values with the City and result in decreased property tax revenues. See the captions "THE CITY—COVID-19 Pandemic" and "RISK FACTORS —Impacts and Potential Impacts of COVID-19 on the City." Other Taxes and Other Revenues Franchise Taxes Fiscal Year 2019-20 franchise taxes, which are levied on [ ], was $2,330,697 and provided the third largest tax revenue source for the City in Fiscal Year 2019-20. Franchise taxes contributed approximately 4.5% of General Fund tax revenues and approximately 4.3% of total General Fund revenues in Fiscal Year 2019-20. Based on unaudited actual Fiscal Year 2020-21 results, the City estimates Fiscal Year 2020-21 franchise tax receipts to be $[ ]. Transient Occupancy Taxes Fiscal Year 2019-20 transient occupancy taxes, which are levied on all hotel, motel and campsite operators providing lodging in the City, was $1,522,714 and provided the fourth largest tax revenue source for the City in Fiscal Year 2019-20. Transient occupancy taxes contributed approximately 2.9% of General Fund tax revenues and approximately 2.8% of total General Fund revenues in Fiscal Year 2019-20. Based on unaudited actual Fiscal Year 2020-21 results, the City estimates Fiscal Year 2020-21 transient occupancy tax receipts to be $[ ]. For each occupancy in any hotel, including but not limited to facilities utilized for dwelling, lodging or sleeping purposes, and includes any inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, any mobile home, house trailer or recreational vehicle located at a fixed location, or any other similar structure or portion thereof used for 32 275 of 324 temporary occupancy (each individually and collectively a "hotel"), such occupancy is subject to and shall pay a tax in the amount of ten percent of the rent charged by the operator for each day of the first thirty days of occupancy. The tax is due for each full or partial consecutive period of occupancy by that transient. Said tax constitutes a debt owed by the transient to the City, which is extinguished only by payment to the operator or to the City. The transient shall pay the tax to the operator of the hotel at the time the rent is paid. If the rent is paid in installments, a proportionate share of the tax shall be paid with each installment. The unpaid tax shall be due upon the transient's ceasing to occupy space in the hotel. If for any reason the tax due is not paid to the operator of the hotel, the tax administrator may require that such tax shall be paid directly to the tax administrator. Other Revenues [TO COME] Other Indebtedness General Fund -Supported Obligations. The obligations set forth in Table 9 below are payable from the District's general revenues. The City may issue other obligations payable from its general revenues at any time. See the caption "RISK FACTORS —City Obligations." Table 9 City of National City Summary of General Fund -Supported Obligations Obligation Section 108 Bonds 2017 Clean Energy Bonds 2017 Lease Revenue Bonds Notes Payable Capital Leases TOTAL (1) As of June 30, 2020. Source: City. Outstanding Year of Amount') Maturity 2,175,000 1,800,000 3,273,024 803,972 768,283 Certain of the obligations that are summarized in the above table are described in further detail below. Section 108 Bonds. The City issued $6,900,000 of HUG 108 Bonds, Series A on August 7, 2003 to provide fund for the construction of a fire station. Such bonds mature annually through 2024. Interest on the bonds is payable semi-annually on each February 1 and August 1, commencing February 1, 2004. 2017 Lease Revenue Bonds and 2017 Clean Energy Bonds. In July 2017, the National City Joint Powers Financing Authority ("NCJPFA") pursuant to a facilities lease and facilities sublease with the City, issued $1,800,000 of taxable clean renewable energy bonds (the "2017 Clean Energy Bonds") under Section 54C(a) of the Code and $3,723,602 of tax-exempt lease revenue bonds (the "2017 Lease Revenue Bonds") to finance the cost of an energy efficiency and renewable energy program under an Energy Services Agreement with Ameresco, Inc. The 2017 Clean Energy Bonds and the 2017 Lease Revenue Bonds were purchased by Banc of America Leasing & Capital, LLC. Principal and interest payments on such bonds are the responsibility of the City and are payable semi-annually on each December 1 and Junel, commencing December 1, 2017. 33 276 of 324 Capital Lease Obligations. The City has entered into the following capital lease obligations: • Honeywell Lease. A fifteen -year contract was entered into on March 16, 2010 by the City for various energy efficiency improvements, such as the installation of a new cooling tower with variable speed fans, boiler replacement, and rooftop package unit replacement. The final payment will be made in 2025. The balance at June 30, 2020 was $759,495. • Enterprise Car Lease. A ten-year contract was entered into during 2015 with Enterprise Fleet Management, Inc. to lease approximately 74 vehicles for City -use with each vehicle having a five-year payment plan. The balance at June 30, 2020 was $8,788. See Note 6 to the City's audited financial statements set forth in Appendix A for further information with respect to General Fund -supported obligations. Short -Term Debt. The City currently has no short-term debt outstanding. City Investment Policy General. [CITY TO REVIEW] The City's Investment Policy and Guidelines (the "Investment Policy") is intended to provide guidelines for the prudent investment of the City's cash balances, and outline policies to assist in maximizing the efficiency of the City's cash management system, while meeting daily cash flow demands of the City. The City's investment practices and policies are based upon State law and prudent money management and the Investment Policy applies to all financial assets of the City. Investments are made in the following order of priority (i) safety; (ii) liquidity and (iii) return on investments. Safety of principal is the foremost objective of the investment program. Investments of the City are undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated and to maintain compliance with any indenture agreement, as applicable. The City's investment portfolio is designed with the objective of attaining market -average rate of return throughout budgetary and economic cycles (market interest rates), within the Investment Policy's risk parameters and the City's cash flow needs. Under the City's Investment Policy and in accordance with California Government Code Section 53600, et. seq., the City may invest in the following types of investments subject to certain limitations on maturity and amount: Bankers' Acceptances, Negotiable Certificates of Deposits, Commercial Paper, State and Local Agency Bonds, U.S. Treasury Obligations, U.S. Agency Securities, Repurchase Agreements, Reverse - Purchase Agreements, Medium -Term Corporate Notes, Federally Insured Time Deposits, Money Market Mutual Funds, Local Agency Investment Funds (LAIF), Investment Trust of California (CalTrust), San Diego County Pool Money Fund, Asset Backed Securities (ABS) and Supranationals. 34 277 of 324 Summary of Investments. A summary of the City's investments as of September 30, 2020, is set forth in the below table. General Fund investments (based on market values) were equal to approximately $390,266,531 million of the total investment portfolio as of September 30, 2020. Table 10 City of National City Summary of Investments as of June 30, 2020(1) Investments LAIF $ 27,705,530 Money Market Funds 34,864 San Diego County Investment Pool 36,442,498 Superanational 505,425 Negotiable Certificates of Deposit 2,000,000 Commercial Paper 624,160 Asset -Backed Securities 1,707,119 U.S. Corporate 6,713,586 U.S. Treasury Obligations 10,611,551 U.S. Agency Securities 11,956,432 Investment in Section 115 Trust 9,537,721 Investments Held by Bond Trustee 11,798 Total $ 107,850,684 (1) Reflects market values. Totals may not add due to rounding. Source: City. See Note 2 in Appendix A for further information with respect to City investments. Other Post -Employment Benefits OPEB Benefit Plan. The City provides postemployment health benefits through a single -employer defined benefit plan administered by the City. The City provides a fixed dollar contribution towards retiree health benefits for approximately 70 retirees. In addition, 294 employees are currently working and earning service credit for eligibility for a City contribution for retiree health benefits. To be eligible for a City contribution, an employee must retire from the City and commence pension benefits under PERS on or after age 50 with at least 20 years of service (five years for management and executive employees) with the City. The City provides a fixed dollar monthly contribution equal to $10 ($20 for management, executive, and safety employees) times years of service. Employees may receive the contribution to use toward non -City health insurance, if evidence of coverage is provided. The City's contribution is payable to Medicare eligibility. Management and executive employees are eligible for the City's contribution during their lifetime. Employees are eligible for retiree health benefits if they retire from the City on or after age 50 with at least 20 years of service. Membership of the plan consists of the following at June 30, 2020, the date of the latest actuarial valuation: Active Retirees Total 294 70 364 The City's net OPEB liability was measured as of June 30, 2020, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2019. The total OPEB 35 278 of 324 liability in the June 30, 2020, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Table 11 City of National City Actuarial Assumptions for OPEB Benefit Plan Actuarial Cost Method Actuarial Assumptions: Contribution Policy Discount Rate Inflation Salary Increases Expected long-term investment rate of return Mortality, Termination and Disability Mortality Improvement Scale Pre -retirement turnover Healthcare Trend Rate Entry Age Normal No pre -funding. 2.66% 2.50% 3.00% n/a Ca1PERS 1997-2014 Experience Study Modified MP-2014, which converge to ultimate mortality improvement rates in 2022 Ranging from 0.01% to 17.42% based on termination rates under Ca1PERS pension plan An annual healthcare cost trend rate of 6.5% initially reduced by decrements to an ultimate of 5.0% therefore. Source: Audited financial statements of the City for Fiscal Year 2019-20. Changes in the net liability for the City's OPEB Benefit plan for Fiscal Year 2019-20 were as follows. Table 12 City of National City Changes in OPEB Benefit Plan Liability Balance at June 30, 2019 Changes Recognized for the Measurement Period: Service Cost Interest Changes in assumptions Benefit Payments Net Changes Balance at June 30, 2020 (Measurement Date) Source: Audited financial statements of the City for Fiscal Year 2019-20. Increase (Decrease Total OPEB Liability $ 5,302,749 $ 190,082 169,175 267,125 (244,418) $ 381,964 $ 5,684,713 Table 13 below presents the net liability of the City's OPEB Benefit plan, calculated using the discount rate applicable to Fiscal Year 2019-20 (2.66%), as well as what the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.66 percent) or 1-percentage- point higher (3.66 percent) than the current discount rate: 36 279 of 324 Table 13 City of National City Sensitivity of the OPEB Benefit Plan Net Liability to Changes in the Discount Rate Current Discount Rate - 1% (1.66%) $6,177,295 Current Discount Rate (2.66%) Current Discount Rate +1%(3.66%) $5,684,713 $5,045,290 Source: Audited financial statements of the City for Fiscal Year 2019-20. Future changes in funding policies and assumptions, including those related to assumed rates of investment return and healthcare cost inflation, could trigger increases in the City's annual required OPEB Benefit plan contributions, and such increases could be material to the finances of the City. No assurance can be provided that such expenses will not increase significantly in the future. The City does not expect that any increased funding of OPEB Benefits will have a material adverse effect on the ability of the City to pay the Bonds. For additional information relating to the City's OPEB Benefit plan, see Note 11 to the City's audited financial statements set forth in Appendix A. City Financial Statements A copy of the most recent audited financial statements of the City (the "Financial Statements") for the Fiscal Year ended June 30, 2020, prepared by The Pun Group, LLP, San Diego, California (the "Auditor"), are included as Appendix A to this Official Statement. The Auditor's letter dated March 25, 2020 is set forth therein. The Financial Statements are public documents and are included within this Official Statement without the prior approval of the Auditor. Accordingly, the Auditor has not performed any post - audit analysis of the financial condition of the City, nor has the Auditor reviewed or audited this Official Statement. Certain financial information that is set forth in this Official Statement is derived from the Financial Statements and the City's audited financial statements for prior years (excluding certain non -cash items and after certain other adjustments) and is qualified in its entirety by reference to such statements, including the notes thereto. The Auditor has not reviewed or audited such financial information or any other portion of this Official Statement. In the Financial Statements, data relating to governmental funds such as the General Fund focus on current financial resources. Under the current financial resources measurement focus, only current assets and current liabilities are generally included on the City's balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances (which is set forth under the caption "—Change in Fund Balance of the City General Fund"), presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balances. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. STATE OF CALIFORNIA BUDGET INFORMATION General Information about the State budget is regularly available at various State -maintained websites. Text of proposed and adopted budgets may be found at the website of the State Department of Finance (the "DOF"), http://www.dof.ca.gov, under the heading "California Budget." An impartial analysis of the budget is posted by the Legislative Analyst's Office (the "LAO") at http://www.lao.ca.gov. In addition, various State official 37 280 of 324 statements, many of which contain a summary of the current and past State budgets and the impact of those budgets on cities in the State, may be found at the website of the State Treasurer, http://www.treasurer.ca.gov. The information referred to is prepared by the respective State agency maintaining each website and not by the City, and the City takes no responsibility for the continued accuracy of these Internet addresses or for the accuracy, completeness or timeliness of information posted there, and such information is not incorporated herein by these references. Budget for State Fiscal Year 2021-22 On July 16, 2021, the Governor signed a series of bills representing the State budget for State Fiscal Year 2022 (the "2021-22 Budget"). The Governor's signing followed negotiations between the Governor and the State Legislature regarding the final provisions of the 2021-22 Budget, including the expenditure of a large projected State general fund surplus. The State Legislature passed temporary budgetary legislation in June 2021 to meet the required State Constitutional budget deadline. The following is drawn from the DOF summary of the 2021-22 Budget. The 2021-22 Budget indicates that revenues are up significantly from the forecast included in the Governor's proposed State budget for State Fiscal Year 2022, resulting in a large budgetary surplus. This is a result of strong cash trends, two major federal relief bills since the beginning of 2021 (as discussed under the caption "THE CITY—COVID-19 Pandemic"), continued stock market appreciation and a significantly upgraded economic forecast from the prior State fiscal year. The 2021-22 Budget also reports that the State has received approximately $285 billion in federal COVID-19 stimulus funding for State programs. Although the 2021-22 Budget acknowledges that building reserves and paying down debts are critical, the 2021-22 Budget allocates approximately 85% of discretionary funds to one-time spending. The multi -year forecast reflects a budget roughly in balance, although the 2021-22 Budget assumes that risks remain to the economic forecast, including a stock market decline that could reduce State revenues. For State Fiscal Year 2021, the 2021-22 Budget projects total general fund revenues and transfers of $188.8 billion and authorizes expenditures of $166.1 billion. The State is projected to end State Fiscal Year 2021 with total available reserves of $39.8 billion, including $25.1 billion in the traditional general fund reserve, $12.3 billion in the State's Budget Stabilization Account (the "BSA"), $1.9 billion in the Public School System Stabilization Account and $450 million in the Safety Net Reserve Fund. For State Fiscal Year 2022, the 2021-22 Budget projects total general fund revenues and transfers of $175.3 billion and authorizes expenditures of $196.4 billion. The State is projected to end State Fiscal Year 2022 with total available reserves of $25.2 billion, including $4 billion in the traditional general fund reserve, $15.8 billion in the BSA, $4.5 billion in the Public School System Stabilization Account and $900 million in the Safety Net Reserve Fund. The 2021-22 Budget sets the Proposition 98 minimum funding guarantee for State Fiscal Year 2022 at $93.7 billion. This results in per -pupil funding of $13,976 from Proposition 98 funding, growing to $21,555 when accounting for all funding sources. The 2021-22 Budget also makes retroactive increases to the minimum school funding guarantee in Fiscal Years 2020 and 2021, setting them at $79.3 billion and $93.4 billion, respectively. Collectively, this represents a three-year increase in the minimum funding guarantee of $47 billion from the level projected by the 2020-21 Budget. Other significant features of the 2021-22 Budget include the following: • General Apportionments — An increase of $395 million in ongoing Proposition 98 funding for general apportionments, comprised of (i) $371.2 million to fund a 5.07% cost of living adjustment, and (ii) $23.8 million to fund 0.50% enrollment growth. 38 281 of 324 • Deferrals — $1.453 billion in Proposition 98 funding to repay apportionment deferrals, of which $144.6 million is from State Fiscal Year 2020, $1.1 billion is from State Fiscal Year 2021 and $229.8 million is from State Fiscal Year 2022. • Student Assistance — $250 million in one-time ARP Act funds to support emergency student financial assistance grants. The 2021-22 Budget also provides $160 million in Proposition 98 funding for student assistance, comprised of $100 million in one-time funding available over three years to address student basic needs including food and housing insecurity, $30 million in ongoing funding to support student mental health services and $30 million in ongoing funding for colleges to establish basic needs centers and hire basic needs coordinators. • Workforce Programs — $42.4 million in ongoing Proposition 98 funding to increase program funding and enable community college districts to support work -based learning opportunities. The 2021-22 Budget also provides $20 million in one-time Proposition 98 funding to support community college participation in High Road Training Partnerships and regional partnerships developed by the California Workforce Development Board. • Facilities —$581.4 million in State general obligation bond funding, including $8.2 million to start nine new capital outlay projects and $573.2 million for the construction phase of 32 projects anticipated to complete design by spring 2022. In addition, the 2021-22 Budget provides $511 million in one-time Proposition 98 funding to address deferred maintenance. For additional information regarding the 2021-22 Budget, see the DOF and LAO websites. The information presented on such websites is not incorporated herein by reference. None of the websites or webpages that are referenced above is in any way incorporated into this Official Statement. They are cited for informational purposes only. The City and the Underwriter make no representation whatsoever as to the accuracy or completeness of any of the information on such websites. There can be no assurance that additional legislation will not be enacted in the future to implement provisions relating to the State budget, address the COVID-19 outbreak or otherwise that may affect the City or its General Fund revenues. Potential Impact of State Financial Condition on the City Currently, the COVID-19 pandemic is materially adversely impacting the financial condition of the State and has caused a recession which will likely result in significant increases in unfunded liabilities of the two main retirement systems managed by State entities, Ca1PERS and the Ca1STRS. The State also has a significant unfunded liability with respect to other post -employment benefits. Current and future State budgets will be significantly affected by the COVID-19 pandemic and other factors over which the City has no control. The City cannot determine what actions will be taken in the future by the State Legislature and the Governor to deal with the COVID-19 pandemic, the current recession and resulting changing State revenues and expenditures. There can be no assurance that, as a result of the COVID-19 pandemic or otherwise, the State will not significantly reduce revenues to local governments (including the City) or shift fmancial responsibility for programs to local governments as part of its efforts to address State financial conditions. Although the State is not a significant source of City revenues, there can be no assurance that State actions to respond to the COVID-19 pandemic will not materially adversely affect the financial condition of the City. 39 282 of 324 Future State Budgets No prediction can be made by the City as to whether the State will continue to encounter budgetary problems in future years, and if it were to do so, it is not clear what measures would be taken by the State to balance its budget, as required by law. In addition, the City cannot predict the final outcome of future State budget negotiations, the impact that such budgets will have on City finances and operations or what actions will be taken in the future by the State Legislature and the Governor to deal with changing State revenues and expenditures. There can be no assurance that actions taken by the State to address its financial condition will not materially adversely affect the financial condition of the City. Current and future State budgets will be affected by national and State economic conditions and other factors, including the current COVID-19 pandemic and associated economic downturn, over which the City has no control. RISK FACTORS Prospective purchasers of the Bonds should carefully consider all possible factors that may affect the ability of the City to pay principal of and interest on the Bonds. The Bonds may not be a suitable investment for all prospective purchasers. The following factors, along with the other information in this Official Statement, should be considered by potential investors in evaluating the purchase of the Bonds. However, the following does not purport to be an exhaustive listing of risks and other considerations which may be relevant to an investment in the Bonds and there can be no assurance that other risk factors will not become material in the future. In addition, the order in which the following factors are presented is not intended to reflect the relative importance of any such risks. City Obligations The City has other obligations payable from its General Fund and other lawfully available funds of the City, including but not limited to debt obligations, lease obligations and certain other liabilities. The Trust Agreement does not prohibit the City from incurring additional debt, lease or other obligations payable from the City's General Fund and other lawfully available funds in the future (including Additional Bonds to finance Pension Liability), which may reduce City moneys available to pay the Bonds. In addition, although the Bonds are payable from all lawfully available funds of the City, the City has no obligation to levy taxes in order to raise sufficient revenues to pay the Bonds. See the caption "CITY FINANCIAL INFORMATION —Other Indebtedness" for a description of the City's current obligations. Certain Risks Associated with Sales Tax and Other Local Tax Revenues For the past several Fiscal Years, sales tax revenues have been a significant source of General Fund revenues to the City. Sales and use tax revenues are based upon the gross receipts of retail sales of tangible goods and products by retailers with taxable transactions in the City, which could be impacted by a variety of factors. For example, during an economic recession, the gross receipts of retailers often decline, and such a decline would cause the sales tax revenues received by the City to decline. An economic recession would also be expected to affect hotel occupancy within the City, and consequently, the City's receipt of transient occupancy taxes. See the caption "THE CITY—COVID-19 Pandemic," "CITY FINANCIAL INFORMATION —Sales Taxes" and "CITY FINANCIAL INFORMATION —Other Taxes and Other Revenues." In addition, changes or amendments in the laws applicable to the City's receipt of sales tax revenues or other local taxes, whether implemented by State legislative action or voter initiative, including any initiative by City voters under Article XIIIC of the California Constitution to repeal the Proposition D Sales Tax, could 40 283 of 324 have an adverse effect on sales tax revenues received by the City. See the caption "CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS." Finally, many categories of transactions are exempt from the Statewide sales tax, and additional categories could be exempted in the future. Currently, most sales of food products for human consumption are exempt; this exemption, however, does not apply to liquor or to restaurant meals. The rate of sales tax levied on taxable transactions in the City or the fee charged by the CDTFA for administering the City's sales tax could also be changed. Assessed Value of Taxable Property Property taxes are a significant source of the City's General Fund revenues. Natural and economic forces can affect the assessed value of taxable property within the City. The City is located in a seismically active region, and damage from an earthquake in or near the area could cause extensive damage to taxable property. Other natural or manmade disasters, such as flood, fire, wildfire, ongoing drought, toxic dumping, erosion or acts of terrorism, could cause a reduction in the assessed value of taxable property within the City. See the captions "—Natural Disasters" and "—Hazardous Substances." In addition, economic and market forces, such as a downturn in the regional economy, could affect assessed values, particularly as these forces might reverberate in the residential housing and commercial property markets as has been experienced in the past. In addition, the total assessed value can be reduced through the reclassification of taxable property to a class exempt from taxation, whether by ownership or use (such as exemptions for property owned by State and local agencies and property used for qualified educational, hospital, charitable or religious purposes). Reductions in the market values of taxable property may cause property owners to appeal assessed values and may also be associated with an increase in delinquency rates for property taxes. Section 2(b) of Article XIIIA of the State Constitution and Section 51 of the State Revenue and Taxation Code, which were adopted pursuant to Proposition 8, which was adopted in 1978, require the County assessor to annually enroll either a property's adjusted base year value (the "Proposition 13 Value") or its current market value, whichever is less. When the current market value replaces the higher Proposition 13 Value on the assessor's roll, such lower value is referred to as the "Proposition 8 Value." Although the annual increase for a Proposition 13 Value is limited to no more than 2%, the same restriction does not apply to a Proposition 8 Value. The Proposition 8 Value of a property is reviewed annually as of January 1; the current market value must be enrolled as long as the Proposition 8 Value falls below the Proposition 13 Value. Thus, any subsequent increase or decrease in market value is enrolled regardless of any percentage increase or decrease. Only when a current Proposition 8 Value exceeds the Proposition 13 Value attributable to a piece of property (adjusted for inflation) does a county assessor reinstate the Proposition 13 Value. Decreases in the assessed value of taxable property within the City resulting from a natural disaster or other calamity, economic recession, reclassification by ownership or use or as a result of the implementation of Proposition 8 all may have an adverse impact on property tax collections by the City, and consequently, the General Fund revenues that are available to make debt service payments on the Bonds. Increasing Retirement -Related Costs The City is required to make contributions to Ca1PERS and to the OPEB Benefit plan for City employees and retirees. Such obligations are a significant financial obligation of the City and could increase in the future. Actual contribution rates will depend on a variety of factors, including but not limited to actual investment returns and future changes to benefits or actuarial assumptions. The City notes that pension contributions in future years may increase as a result of losses in CaIPERS' portfolio resulting from stock 41 284 of 324 market declines. See the captions "THE CITY—COVID-19 Pandemic" and "RISK FACTORS —Impacts and Potential Impacts of COVID-19 on the City." There can be no assurances that actual increases in required contributions will not be greater than the amounts which are currently projected to be required by the City. See the captions "CITY PENSION PLANS —Potential Impacts of Future Required Contributions" and "CITY FINANCIAL INFORMATION —Other Post -Employment Benefits." Dependence on State for Certain Revenues A number of the City's revenues are collected and dispersed by the State (such as sales taxes and the VLF) or allocated in accordance with State law (most importantly, property taxes). Therefore, State budget decisions can have an impact on City finances. In the event of a material economic downturn in the State, including as a result of the COVID-19 outbreak that is discussed under the captions "THE CITY—COVID-19 Pandemic" and "RISK FACTORS —Impacts and Potential Impacts of COVID-19 on the City," there can be no assurance that any resulting revenue shortfalls to the State will not reduce revenues to local governments (including the City) or shift financial responsibility for programs to local governments as part of the State's efforts to address any such related State financial difficulties. See the caption "STATE OF CALIFORNIA BUDGET INFORMATION." No Reserve Fund The City has not funded a reserve fund in connection with the issuance of the Bonds. Litigation The City may be or become a party to litigation that has an impact on the General Fund. Although the City maintains certain insurance policies that provide liability coverage under certain circumstances and with respect to certain types of incidents (as discussed under the caption "THE CITY —Risk Management"), the City cannot predict what types of liabilities may arise in the future. See the caption "LITIGATION." Natural Disasters The occurrence of any natural disaster in the City, including, without limitation, earthquake, wildfire, drought, high winds, landslide or flood, which results in significant damage within the City or otherwise significantly impacts the economy of the City could materially adversely affect the financial condition of the City. See the caption "THE CITY —Risk Management." The City is located in a seismically active region and could be impacted by a major earthquake originating from the numerous faults in the area. Traces of the potentially active La Nacion fault zone are known to cross the City in a generally north -south direction within the central portion of the City. The nearest active faults are the Rose Canyon fault located approximately 14 miles northwest of the City, and the Coronado Bank fault, located approximately 30 miles from the City. Other active faults in the region are located more than 60 miles from the City. Seismic hazards encompass potential surface rupture, ground shaking, liquefaction and landslides. Strong vibrations due to earthquakes can cause liquefaction of certain soil types. Areas of the City in close proximity to San Diego Bay and the Sweetwater and Otay River Valley have shallow groundwater tables and poorly consolidated granular sediments potentially subject to seismically -induced liquefaction. A portion of the City is also subject to landslides in the event of an earthquake. A major earthquake could cause widespread destruction and significant loss of life in a populated area such as the City. If an earthquake were to substantially damage or destroy taxable property within the City, a 42 285 of 324 reduction in taxable values of property in the City and a reduction in revenues available to the General Fund would likely occur. The City carries no earthquake insurance on City facilities. Portions of the City are located in a 100-year flood plain. Portions of the City are located along the Pacific Ocean and the City could be subject to the impacts from tsunamis in the event of an earthquake off- shore. If either a flood or a tsunami were to substantially damage or destroy taxable property within the City, a reduction in taxable values of property in the City and a reduction in revenues available to the General Fund would likely occur. The City carries no flood insurance on City facilities. The State, including the City, is periodically subject to wildfires. The last major wildfire in the vicinity of the City was the Harris Fire in October 2007. During the Harris Fire, as a precaution, the City established emergency shelters; however, no significant damage was sustained to property within the City. When wildfires scorch land, they destroy all vegetation on mountains and hillsides. As a result, when heavy rain falls in the winter, there is nothing to stop the rain from penetrating directly into the soil. In addition, waxy compounds in plants and soil that are released during fires create a natural barrier in the soil that prevents rain water from seeping deep into the ground. The result is erosion, mudslides, and excess water running off the hillsides often causing flash flooding. In January 2017 the City was affected by severe wind, rainstorm and flooding which resulted in property damage to facilities owned by the City. The occurrence of natural disasters in the City could result in substantial damage to the City which, in turn, could substantially affect the City's economy and reduce General Fund revenues, which could affect the payment of the principal of and interest on the Bonds. In particular, if a natural disaster were to result in reduced assessed valuations of property within the City, the amount of property tax revenues could be reduced. See the caption "CITY FINANCIAL INFORMATION —Property Taxes." The City maintains commercial general liability, fire, lightning and special extended coverage insurance. See the caption "THE CITY —Risk Management." However, there can be no assurance that specific losses will be covered by insurance or, if covered, that claims will be paid in full by the applicable insurers. Climate Change The State has historically been susceptible to wildfires and hydrologic variability. As greenhouse gas emissions continue to accumulate in the atmosphere as a result of economic activity, climate change is expected to intensify, increasing the frequency, severity and timing of extreme weather events such as coastal storm surges, drought, wildfires, floods and heat waves, and raising sea levels. Since 2000, the City has been implementing a "Climate Action Plan" to address the threat of climate change impacts to the local community. The most recent plan is the 2017 Climate Action Plan ("CAP") which was adopted by City Council on September 26, 2017, includes new goals and policies to strengthen the City's climate action efforts. Implementing the CAP facilitates achieving numerous community co -benefits such as utility savings, better air quality, reduced traffic congestion, local economic development, and improved quality of life. The CAP brings together City's climate plan efforts including the original Carbon Dioxide Reduction Plan (2000), the mitigation plan (2008) and the adaptation plan (2011). The City regularly conducts greenhouse gas emission inventories to help guiding the execution of the CAP as well as to monitor and evaluate the progress. The future fiscal impact of climate change on the City is difficult to predict, but it could be significant and it could have a material adverse effect on the General Fund by requiring greater expenditures to counteract 43 286 of 324 the effects of climate change or by changing the operations and activities of City residents and business establishments. Hazardous Substances The discovery of any hazardous substance that would limit the beneficial use of a property within the City could result in a reduction in the assessed value of affected parcels. In general, the owners and operators of a property may be required by law to remedy conditions of the property relating to releases or threatened releases of hazardous substances. The Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, sometimes referred to as "CERCLA" or the "Superfund Act," is the most well-known and widely applicable of these laws, but California laws with regard to hazardous substances are also stringent and similar. Under many of these laws, the owner (or operator) is obligated to remedy a hazardous substance condition of property whether or not the owner or operator had anything to do with creating or handling the hazardous substance. The effect, therefore, should any substantial amount of property within the City be affected by a hazardous substance, would be to reduce the marketability and value of the property by the costs of, and any liability incurred by, remedying the condition, since a purchaser, upon becoming an owner, will become obligated to remedy the condition just as is the seller. Such reduction could adversely impact the property tax revenues received by the City, which could significantly and adversely affect the operations and finances of the City and the City's ability to pay the Bonds. See the caption "—Assessed Value of Taxable Property." The City has not independently verified, but is not aware of, the presence of any hazardous substances in the City except in connection with everyday business activities such as gas stations and dry cleaning establishments having a material adverse effect on property values in the City. Hazardous substance liabilities may arise in the future with respect to any of the property in the City resulting from the existence, currently, of a substance presently classified as hazardous but which has not been released or the release of which is not presently threatened, or may arise in the future resulting from the existence, currently, on the parcel of a substance not presently classified as hazardous but which may in the future be so classified. Additionally, such liabilities may arise from the method of handling such substance. These possibilities could significantly affect the value of a parcel. Cybersecurity Municipal agencies, like other business entities, face significant risks relating to the use and application of computer software and hardware. Recently, there have been significant cybersecurity incidents affecting municipal agencies, including a freeze affecting computer systems of the City of Atlanta, an attack on the City of Baltimore's 911 system, an attack on the Colorado Department of Transportation's computers and an attack that resulted in the temporary closure of the Port of Los Angeles' largest terminal. The City recently deployed an all new, highly segmented network infrastructure which employs a multi -level network security protection scheme that includes network firewalls, server- and personal computer - level advanced malware/anti-virus software, endpoint security, email protection as well as next generation intrusion protection and domain name system filtering software. The City retains the services of a professional network maintenance company to ensure updates/patches to the network address known vulnerabilities. To date, the City has not experienced an attack on its computer operating systems. There can be no assurance that a future attack or attempted attack would not result in disruption of City operations, particularly given that employee access of City computer systems from home in light of the COVID-19 pandemic may increase the risks of intrusion by third parties. Limitation on Sources of Revenues Although the Bonds are payable from all lawfully available funds of the City, the City has no obligation to levy taxes, assessments, fees or charges in order to raise sufficient revenues to pay the Bonds. In 44 287 of 324 the event that the City were to choose to do so, the State Constitution contains significant limitations and imposes significant procedural requirements which affect the City's ability to increase City revenues. See the caption "CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS." In addition, under the State Constitution, voters of the State have the ability to initiate legislation and require a public vote on legislation passed by the State Legislature through the powers of initiative and referendum, respectively. The City is unable to predict whether any such initiatives or referenda might be submitted to or approved by the voters, the nature of such initiatives or referenda or their potential impact on the City and its operations. Economy of City and State A deterioration in the level of economic activity in the City, the State or the United States, including as a result of the COVID-19 outbreak that is discussed under the caption "THE CITY—COVID-19 Pandemic," could have a material adverse effect on the City's general revenues and on the ability of the City to pay principal of and interest on the Bonds. See the caption "STATE OF CALIFORNIA BUDGET INFORMATION" for information about the State's economy and State budget. Limitation on Remedies; Bankruptcy General. The enforcement of any remedies that are provided for in the Trust Agreement could prove both expensive and time consuming. The rights and remedies that are provided in the Trust Agreement may be limited by and are subject to: (i) the limitations on legal remedies against cities in the State, including State Constitutional limits on expenditures and limitations on the enforcement of judgments against funds that are needed to serve the public welfare and interest; (ii) federal bankruptcy laws, as now or later enacted, as discussed in detail under the caption "—Bankruptcy" below; (iii) applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors' rights generally, now or later in effect; (iv) equity principles which may limit the specific enforcement under State law of certain remedies; (v) the exercise by the United States of America of the powers delegated to it by the Constitution; and (vi) the reasonable and necessary exercise, in certain exceptional situations, of the police powers that are inherent in the sovereignty of the State and its governmental bodies in the interest of serving a significant and legitimate public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or State government, if initiated, could subject the Owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy or otherwise, and consequently may entail risks of delay, limitation or modification of their rights. The legal opinions that will be delivered concurrently with the delivery of the Bonds will be qualified, as to the enforceability of the Bonds, the Trust Agreement and other related documents, by bankruptcy, insolvency, reorganization, moratorium, arrangement, fraudulent conveyance and other laws relating to or affecting creditors' rights, to the application of equitable principles, to the exercise of judicial discretion in appropriate cases, and to the limitations on legal remedies against cities in the State. Failure by the City to pay principal of or interest on the Bonds or failure to observe and perform any other terms, covenants or conditions of the Trust Agreement for a period of 60 days after written notice of such failure and request that it be remedied has been given to the City by the Trustee, constitute events of default under the Trust Agreement and permit the Trustee to pursue the remedies that are described in the Trust Agreement. In the event of a default, there is no right under any circumstances to accelerate payment of the Bonds or otherwise declare any Bonds that are not then in default to be immediately due and payable. Any suit for money damages against the City would be subject to limitations on legal remedies against cities in the State, including a limitation on enforcement of judgments against funds needed to serve the public welfare and interest. 45 288 of 324 Bankruptcy. Enforceability of the rights and remedies of the Owners of the Bonds, and the obligations incurred by the City, may become subject to the provisions of Title 11 of the United States Code (the "Bankruptcy Code") and applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors' rights generally, now or later in effect, equity principles which may limit the specific enforcement under State law of certain remedies, the exercise by the United States of America of the powers delegated to it by the federal Constitution, the reasonable and necessary exercise, in certain exceptional situations, of the police powers inherent in the sovereignty of the State and its governmental bodies in the interest of serving a significant and legitimate public purpose and the limitations on remedies against cities in the State. Bankruptcy proceedings, or the exercise of powers by the federal or State government, if initiated, could subject the Owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy or otherwise, and consequently may entail risks of delay, limitation or modification of their rights. Under Chapter 9 of the Bankruptcy Code, which governs the bankruptcy proceedings for public agencies such as the City, involuntary petitions are not permitted. If the City were to file a petition under Chapter 9 of the Bankruptcy Code, the Owners of the Bonds and the Trustee could be prohibited from taking any steps to enforce their rights under the Trust Agreement or from taking any steps to collect amounts due from the City on the Bonds. In particular, if the City were to become a debtor under the Bankruptcy Code, the City would be entitled to all of the protective provisions of the Bankruptcy Code as applicable in a Chapter 9 case. Among the adverse effects of such a bankruptcy might be: (i) the application of the automatic stay provisions of the Bankruptcy Code, which, until relief is granted, would prevent collection of payments from the City or the commencement of any judicial or other action for the purpose of recovering or collecting a claim against the City, and which could prevent the Trustee from making payments from funds in its possession; (ii) the avoidance of preferential transfers occurring during the relevant period prior to the filing of a bankruptcy petition; (iii) the existence of unsecured or secured debt which may have a priority of payment that is superior to that of Owners of the Bonds; and (iv) the possibility of the adoption of a plan (an "Adjustment Plan") for the adjustment of the City's various obligations over the objections of the Trustee or all of the Owners of the Bonds and without their consent, which Adjustment Plan may restructure, delay, compromise or reduce the amount of any claim of the Owners if the Bankruptcy Court finds that such Adjustment Plan is "fair and equitable" and in the best interests of creditors. The Bonds are not secured by any property other than the funds that the City has actually deposited with the Trustee. If the City is in bankruptcy, it may not be obligated to make any further deposits with the Trustee, it may not be obligated to make any further allocations to the Bonds and it may not be obligated to turn over to the Trustee any moneys that have been allocated to the Bonds in the City treasury. As a result, the Bonds would likely be treated as unsecured obligations of the City in the bankruptcy case. Under such circumstances, the Owners of the Bonds could suffer substantial losses. The Adjustment Plans approved by the bankruptcy courts in connection with the bankruptcies of the cities of Stockton and San Bernardino, among others, resulted in significant reductions in the amounts payable by such city under pension obligation bonds that were substantially identical or similar to the Bonds. Specifically, in the Stockton bankruptcy, the court held that Ca1PERS was an unsecured creditor of the city with a claim on parity with those of other unsecured creditors. Additionally, in the San Bernardino bankruptcy, the court held that in the event of a municipal bankruptcy, payments on pension obligation bonds, such as the Bonds, were unsecured obligations and not entitled to the same priority of payments made to Ca1PERS. The City can provide no assurances about the outcome of the bankruptcy cases of other municipalities or the nature of any Adjustment Plan if it were to file for bankruptcy. The City may be able, without the consent and over the objection of the Trustee or the Owners of the Bonds, to alter the priority, interest rate, payment terms, maturity dates, payment sources, covenants and other terms or provisions of the Trust Agreement and the Bonds, as long as the bankruptcy court determines that the alterations are fair and equitable. 46 289 of 324 There may be delays in payments on the Bonds while the court considers any of these issues. There may be other possible effects of a bankruptcy of the City that could result in delays or reductions in payments on the Bonds, or result in losses to the Owners of the Bonds. Regardless of any specific adverse determinations in a City bankruptcy proceeding, the fact that a City bankruptcy proceeding has occurred could have an adverse effect on the liquidity and value of the Bonds. Limitation on Trustee's Obligations The Trustee has no obligation to advance its own funds to pursue any remedies. As a consequence, the Trustee's willingness and ability to pursue any of the remedies provided in the Trust Agreement may be dependent upon the availability of funds from an interested party. There can be no assurance that the Trustee will be willing and able to perform its duties under the Trust Agreement. Limited Secondary Market Investment in the Bonds poses certain economic risks which may not be appropriate for certain investors, and only persons with substantial financial resources who understand the risks of investment in the Bonds should consider such investment. There can be no guarantee that there will be a secondary market for purchase or sale of the Bonds or, if a secondary market exists, that the Bonds can or could be sold for any particular price. Occasionally, because of general market conditions or because of adverse history or economic prospects connected with a particular issue, secondary marketing in connection with a particular issue is suspended or terminated. Additionally, prices of issues for which a market is being made will depend upon the then prevailing circumstances. Such prices could be substantially different from the original purchase price. In addition, the City will enter into a continuing disclosure undertaking pursuant to Rule 15c2-12 in connection with the issuance of the Bonds. Any material failure to comply with such undertaking and Rule 15c2-12 in the future may adversely affect the liquidity of the affected Bonds and their market price in the secondary market. See the caption "CONTINUING DISCLOSURE." Changes in Law There can be no assurance that the electorate of the State will not adopt additional initiatives or that the State Legislature will not enact legislation that will amend the laws or the Constitution of the State in a manner that results in a reduction of General Fund revenues of the City and consequently, has an adverse effect on the security for the Bonds. CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS Article XIIIA of the State Constitution On June 6, 1978, State voters approved an amendment (commonly known as both Proposition 13 and the Jarvis -Gann Initiative) to the State Constitution. The amendment, which added Article XIIIA to the State Constitution, among other things affects the valuation of real property for the purpose of taxation in that it defines the full cash property value to mean "the county assessor's valuation of real property as shown on the 1975/76 tax bill under 'full cash value', or thereafter, the appraised value of real property newly constructed, or when a change in ownership has occurred after the 1975 assessment." The full cash value may be adjusted annually to reflect inflation at a rate not to exceed 2% per year, or a reduction in the consumer price index or comparable local data at a rate not to exceed 2% per year, or reduced in the event of declining property value caused by damage, destruction or other factors including a general economic downturn. The amendment further limits the amount of any ad valorem tax on real property to 1% of the full cash value, except that 47 290 of 324 additional taxes may be levied to pay debt service on indebtedness approved by the voters prior to December 1, 1978 and bonded indebtedness for the acquisition or improvement of real property approved on or after December 1, 1978 by two-thirds of the votes cast by the voters voting on the proposition (55% in the case of certain school facilities). Property taxes that are subject to Proposition 13 are a significant source of the City's General Fund revenues. See the caption "CITY FINANCIAL INFORMATION —Property Taxes." Legislation enacted by the State Legislature to implement Article XIIIA provides that all taxable property is shown at full assessed value as described above. Tax rates for voter approved bonded indebtedness are also applied to 100% of assessed value. Future assessed valuation growth allowed under Article XIIIA (for new construction, change of ownership or 2% annual value growth) is allocated on the basis of "situs" among the jurisdictions that serve the tax rate area within which the growth occurs. Local agencies and school districts share the growth of "base" revenue from the tax rate area. Each year's growth allocation becomes part of each agency's allocation the following year. Article XIIIA effectively prohibits the levying of any other ad valorem property tax above the 1 % limit except for taxes to support indebtedness approved by the voters as described above. Article XIIIA has subsequently been amended to permit reduction of the "full cash value" base in the event of declining property values caused by damage, destruction or other factors, and to provide that there would be no increase in the "full cash value" base in the event of reconstruction of property damaged or destroyed in a disaster and in certain other limited circumstances. Proposition 19 On November 3, 2020, State voters approved Proposition 19, a legislatively referred constitutional amendment ("Proposition 19"), which amends Article XIIIA to: (i) expand special rules that give property tax savings to homeowners that are over the age of 55, severely disabled, or whose property has been impacted by wildfire or natural disaster, when they buy a different home; (ii) narrow existing special rules for inherited properties; and (iii) dedicate most of the potential new State revenue generated from Proposition 19 toward fire protection. The City cannot make any assurance as to what effect Proposition 19 will have on City revenues or the assessed valuation of real property located within the City. Article XIIIB of the State Constitution On November 6, 1979, State voters approved an initiative entitled "Limitation on Government Appropriations," which added Article XIIIB to the State Constitution. Under Article XIIIB, State and local government entities have an annual "appropriations limit" which limits the ability to spend certain moneys which are called "appropriations subject to limitation" (consisting of tax revenues and investment proceeds thereof, certain State subventions and regulatory license fees, user charges and user fees to the extent that the proceeds thereof exceed the costs of providing such services, together called "proceeds of taxes," and certain other funds) in an amount higher than the "appropriations limit." Article XIIIB does not affect the appropriation of moneys which are excluded from the definition of "appropriations limit," including debt service on indebtedness existing or authorized as of October 1, 1979 or bonded indebtedness subsequently approved by the voters. In general terms, the "appropriations limit" is to be based on certain 1978-79 expenditures and is to be adjusted annually to reflect changes in the consumer price index, population and services provided by these entities. Among other provisions of Article XIIIB, if those entities' revenues in any year exceed the amounts permitted to be spent, the excess would have to be returned by revising tax rates or fee schedules over the subsequent two years. Increases in appropriations by a governmental entity are permitted: (i) if financial responsibility for providing services is transferred to a governmental entity; or (ii) for emergencies so long as the appropriations limits for the three years following the emergency are reduced 48 291 of 324 accordingly to prevent any aggregate increase above the Constitutional limit. Decreases are required where responsibility for providing services is transferred from the government entity. Article XIIIB permits any government entity to change the appropriations limit by vote of the electorate in conformity with statutory and Constitutional voting requirements, but any such voter -approved change can only be effective for a maximum of four years. The City's appropriations have never exceeded the limitation on appropriations under Article XIIIB of the State Constitution. Proposition 62 On November 4, 1986, State voters approved an initiative ("Proposition 62") which: (a) requires that any tax for general governmental purposes imposed by local governmental entities be approved by resolution or ordinance adopted by two-thirds vote of the governmental agency's legislative body and by a majority of the electorate of the governmental entity; (b) requires that any special tax (defined as taxes levied for other than general governmental purposes) imposed by a local governmental entity be approved by a two-thirds vote of the voters within the jurisdiction; (c) restricts the use of revenues from a special tax to the purposes or for the service for which the special tax is imposed; (d) prohibits the imposition of ad valorem taxes on real property by local governmental entities except as permitted by Article XIIIA; (e) prohibits the imposition of transaction taxes and sales taxes on the sale of real property by local governmental entities; and (f) requires that any tax that is imposed by a local governmental entity on or after August 1, 1985 be ratified by a majority vote of the electorate within two years of the adoption of the initiative or be terminated by November 15, 1988. The requirements imposed by Proposition 62 were upheld by the State Supreme Court in Santa Clara County Local Transportation Authority v. Guardino, 11 Ca1.4th 220 (1995). Following the Guardino decision upholding Proposition 62, several actions were filed challenging taxes imposed by public agencies since the adoption of Proposition 62. In 2001, the State Supreme Court released its decision in one of these cases, Howard Jarvis Taxpayers Association v. City of La Habra, et al., 25 Ca1.4th 809 (2001). In La Habra, the court held that a public agency's continued imposition and collection of a tax is an ongoing violation upon which the statute of limitations period begins anew with each collection. The court also held that, unless another statute or constitutional rule provided differently, the statute of limitations for challenges to taxes subject to Proposition 62 is three years. Accordingly, a challenge to a tax subject to Proposition 62 may only be made for those taxes received within three years of the date the action is brought. The City believes that all of the taxes that the City currently collects comply with the requirements of Proposition 62. However, the requirements of Proposition 62 are largely subsumed by the requirements of Proposition 218 for the imposition of any taxes or the effecting of any tax increases after November 5, 1996. See the caption "—Proposition 218" below. Proposition 218 On November 5, 1996, State voters approved Proposition 218, an initiative measure entitled the "Right to Vote on Taxes Act." Proposition 218 added Articles XIIIC and XIIID to the State Constitution, imposing certain vote requirements and other limitations on the imposition of new or increased taxes, assessments (meaning any levy or charge upon real property for a special benefit conferred upon the real property) and property -related fees and charges. Proposition 218 states that all taxes which are imposed by local governments are deemed to be either general taxes or special taxes. Special purpose districts, including school districts, have no power to levy general taxes. No local government may impose, extend or increase any general tax unless and until such tax is submitted to the electorate and approved by a majority vote. No local government may impose, extend or increase any special tax unless and until such tax is submitted to the electorate and approved by a two-thirds vote. 49 292 of 324 Proposition 218 also provides that no tax, assessment, fee or charge may be assessed by any agency upon any parcel of property or upon any person as an incident of property ownership except: (a) the ad valorem property tax imposed pursuant to Articles XIII and XIIIA of the State Constitution; (b) any special tax receiving a two-thirds vote pursuant to the State Constitution; and (c) assessments, fees and charges for property -related services as provided in Proposition 218. Proposition 218 then goes on to add voter requirements for assessments and fees and charges imposed as an incident of property ownership, other than fees and charges for sewer, water, and refuse collection services. In addition, all assessments and fees and charges imposed as an incident of property ownership, including sewer, water and refuse collection services, are subjected to various additional procedures, such as hearings and stricter and more individualized benefit requirements and findings. The effect of such provisions is to increase the difficulty a local agency will have in imposing, increasing or extending such assessments, fees and charges. In the case of assessments, fees and charges, in most instances, in the event that the City is unable to collect revenues relating to specific programs as a consequence of Proposition 218, the City will curtail such services rather than use amounts in the General Fund to finance such programs. However, no assurance can be given that the City may or will be able to reduce or eliminate such services to avoid new costs for the City General Fund in the event that the assessments, fees or charges which presently finance them are reduced or repealed. Proposition 218 also extends the initiative power to reducing or repealing any local taxes, assessments, fees and charges. This extension of the initiative power is not limited to taxes imposed on or after November 6, 1996, the effective date of Proposition 218, and is not limited to property -related taxes or other charges, and could result in retroactive repeal or reduction in any existing taxes, assessments, fees and charges, subject to overriding federal constitutional principles relating to the impairments of contracts. Legislation implementing Proposition 218 provides that the initiative power provided for in Proposition 218 "shall not be construed to mean that any owner or beneficial owner of a municipal security, purchased before or after (the effective date of Proposition 218) assumes the risk of, or in any way consents to, any action by initiative measure that constitutes an impairment of contractual rights" protected by the United States Constitution. However, no assurance can be given that the voters of the City will not, in the future, approve an initiative which reduces or repeals local taxes, assessments, fees or charges that currently are deposited into the City's General Fund. Although a portion of the City's General Fund revenues are derived from general taxes purported to be governed by Proposition 218, as discussed under the caption "CITY FINANCIAL INFORMATION," the City believes that all of such taxes were imposed in accordance with the requirements of Proposition 218. Unitary Property Some amount of property tax revenue of the City is derived from utility property which is considered part of a utility system with components located in many taxing jurisdictions ("unitary property"). Under the State Constitution, such property is assessed by the SBE as part of a "going concern" rather than as individual pieces of real or personal property. State -assessed unitary and certain other property is allocated to the counties by the SBE, taxed at special county -wide rates, and the tax revenues distributed to taxing jurisdictions (including the City) according to a statutory formula that is generally based on the distribution of taxes in the prior year. Proposition 1A As part of former Governor Schwarzenegger's agreement with local jurisdictions, Senate Constitutional Amendment No. 4 was enacted by the State Legislature and subsequently approved by the voters as Proposition lA ("Proposition 1A") at the November 2, 2004 general election. Proposition lA amended the State Constitution to, among other things, reduce the State Legislature's authority over local government revenue sources by placing restrictions on the State's access to local governments' property, sales, 50 293 of 324 and VLF revenues as of November 3, 2004. Beginning with Fiscal Year 2008-09, the State was entitled to borrow up to 8% of local property tax revenues, but only if the Governor proclaimed that such action was necessary due to a severe State fiscal hardship and two-thirds of both houses of the State Legislature approved the borrowing. The amount borrowed was required to be paid back within three years with interest. The State also was not able to borrow from local property tax revenues for more than two Fiscal Years within a period of ten Fiscal Years. In addition, the State could not reduce the local sales tax rate or restrict the authority of local governments to impose or change the distribution of the Statewide local sales tax. The Fiscal Year 2009-10 State budget included a Proposition 1A diversion of $1.935 billion in local property tax revenues from cities, counties, and special districts to the State to offset State General Fund spending. Such diverted revenues were required to be repaid, with interest, by no later than June 30, 2013. Many provisions of Proposition IA were superseded by Proposition 22. See the caption "—Proposition 22." Proposition 22 On November 2, 2010, State voters approved Proposition 22, which eliminates the State's ability to borrow or shift local revenues and certain State revenues that fund transportation programs. It restricts the State's authority over a broad range of tax revenues, including property taxes allocated to cities (including the City), counties and special districts, the VLF, State excise taxes on gasoline and diesel fuel, the State sales tax on diesel fuel and the former State sales tax on gasoline. It also makes a number of significant other changes, including restricting the State's ability to use motor vehicle fuel tax revenues to pay debt service on voter - approved transportation bonds. Proposition 22 superseded certain provisions of Proposition 1A. See the captions "—Proposition 1A" and "CITY FINANCIAL INFORMATION —Property Taxes." Proposition 26 On November 2, 2010, State voters approved Proposition 26. Proposition 26 amended Article XIIIC of the State Constitution to expand the definition of "tax" to include "any levy, charge, or exaction of any kind imposed by a local government" except the following: (a) a charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege; (b) a charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product; (c) a charge imposed for the reasonable regulatory costs of a local government for issuing licenses and permits, performing investigations, inspections and audits, enforcing agricultural marketing orders and the administrative enforcement and adjudication thereof; (d) a charge imposed for entrance to or use of local government property, or the purchase, rental or lease of local government property; (e) a fine, penalty or other monetary charge imposed by the judicial branch of government or a local government as a result of a violation of law; (f) a charge imposed as a condition of property development; and (g) assessments and property -related fees imposed in accordance with the provisions of Article XIIID. Proposition 26 provides that the local government bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor's burdens on, or benefits received from, the governmental activity. The City does not believe that Proposition 26 will adversely affect its General Fund revenues. Future Initiatives Articles XIIIA and XIIIB and Propositions 62, 218, 1A, 22 and 26 were each adopted as measures that qualified for the ballot pursuant to the State's initiative process. The limitations imposed upon the City by these provisions hinder the City's ability to raise revenues through taxes or otherwise and may therefore prevent the City from meeting increased expenditure requirements. From time to time other initiative 51 294 of 324 measures could be adopted, further affecting the City's current revenues or its ability to raise and expend revenues. Any such future initiatives could have a material adverse effect on the City's financial condition. TAX MATTERS In the opinion of Kutak Rock LLP, Irvine, California ("Bond Counsel"), under existing statutes, regulations, rulings and judicial decisions, and assuming the accuracy of certain representations and compliance with certain covenants and requirements described herein, interest on the Bonds is not excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), but is exempt from State of California personal income tax. With certain exceptions, the difference between the issue price of a Bond (the first price at which a substantial amount of the Bonds of the same maturity is to be sold to the public) and the stated redemption price at maturity with respect to such Bond (to the extent the redemption price at maturity is greater than the issue price) constitutes original issue discount. Original issue discount accrues under a constant yield method. The amount of original issue discount deemed received by the Beneficial Owner of a Bond will increase the Beneficial Owner's basis in the Bond. Beneficial Owners of the Bonds should consult their own tax advisors with respect to taking into account any original issue discount on the Bonds. The amount by which a Bond Beneficial Owner's original basis for determining loss on sale or exchange in the applicable Bond (generally, the purchase price) exceeds the amount payable on maturity (or on an earlier call date) constitutes amortizable bond premium, which the Beneficial Owner of a Bond may elect to amortize under Section 171 of the Code; such amortizable bond premium reduces the Bond Beneficial Owner's basis in the applicable Bond (and the amount of taxable interest received with respect to the Bonds), and is deductible for federal income tax purposes. The basis reduction as a result of the amortization of bond premium may result in a Bond Beneficial Owner realizing a taxable gain when a Bond is sold by the Beneficial Owner for an amount equal to or less (under certain circumstances) than the original cost of the Bond to the Beneficial Owner. The Beneficial Owners of the Bonds that have a basis in the Bonds that is greater than the principal amount of the Bonds should consult their own tax advisors with respect to whether or not they should elect such premium under Section 171 of the Code. In the event of a legal defeasance of the Bonds, such Bonds might be treated as retired and "reissued" for federal tax purposes as of the date of the defeasance, potentially resulting in recognition of taxable gain or loss to the applicable Beneficial Owner generally equal to the difference between the amount deemed realized from the deemed prepayment and reissuance and the Beneficial Owner's adjusted tax basis in such Bond. The tax discussion set forth above is included for general information only and may not be applicable depending upon a Bond Owner's particular situation. The ownership and disposal of the Bonds and the accrual or receipt of interest on the Bonds may otherwise affect the tax liability of certain persons. Bond Counsel expresses no opinion regarding any such tax consequences. BEFORE PURCHASING ANY OF THE BONDS, ALL POTENTIAL PURCHASERS SHOULD CONSULT THEIR INDEPENDENT TAX ADVISORS WITH RESPECT TO THE TAX CONSEQUENCES RELATING TO THE BONDS AND THE TAXPAYER'S PARTICULAR CIRCUMSTANCES. A copy of the proposed form of opinion of Bond Counsel with respect to the Bonds is set forth in Appendix D. VALIDATION On December 10, 2020, the City, acting pursuant to the provisions of Section 860 et seq. of the California Code of Civil Procedure, filed the Validation Petition in the Court seeking judicial validation of the transactions relating to the Ca1PERS Contract and the Bonds and certain other matters. On June 15, 2021, the court entered the Validation Judgment to the effect, among other things that: (i) the Trust Agreement will be a 52 295 of 324 valid, legal and binding obligation of the City and the approval thereof was in conformity with applicable provisions of law; and (ii) the City has the authority under State law to provide for the refunding of its Pension Liability by issuing the Bonds and applying the proceeds of the Bonds to the retirement of its Pension Liability. Pursuant to Section 870 of the California Code of Civil Procedure, the last day to timely file a notice of appeal to the Validation Judgment was July 15, 2021. On July 15, 2021, the judgment became binding and conclusive in accordance with State law. The City is unaware of any threatened challenge to the Validation Judgment. In issuing its approving opinion, Bond Counsel will rely, among other things, upon the Validation Judgment. CERTAIN LEGAL MATTERS The validity of the Bonds and certain other legal matters are subject to the approving opinion of Bond Counsel. A complete copy of the proposed form of Bond Counsel opinion is set forth in Appendix D. Certain additional matters will be passed upon by Kutak Rock LLP, as Disclosure Counsel to the City. Certain legal matters will be passed upon for the City by its City Attorney, for the Underwriter by its counsel, Stradling Yocca Carlson & Rauth, a Professional Corporation, and for the Trustee by its counsel. Bond Counsel has not undertaken any responsibility to the owners of the Bonds for the accuracy, completeness or fairness of this Official Statement or other offering materials relating to the Bonds, and expresses no opinion relating thereto. Bond Counsel and Disclosure Counsel will receive compensation from the City contingent upon the sale and delivery of the Bonds. From time to time, Bond Counsel represents the Underwriter on matters unrelated to the Bonds. Counsel to the Underwriter will receive compensation contingent upon the issuance of the Bonds. LITIGATION To the best knowledge of the City there is no action, suit or proceeding known to be pending or threatened, restraining or enjoining the execution and delivery or the issuance of the Bonds or the execution and delivery of the Trust Agreement, or in any way contesting or affecting the validity of any of the foregoing or any proceedings of the City taken with respect to any of the foregoing. There are a number of lawsuits and claims pending against the City. In the opinion of the City Attorney, such other lawsuits and claims which are presently pending will not have a material adverse effect on the ability of the City to pay the principal of and interest on the Bonds. RATING S&P Global Ratings, a Standard & Poor's Financial Services LLC business ("S&P") has assigned the Bonds the rating of " A rating is not a recommendation to buy, sell or hold securities. Future events, including the impacts of the COVID-19 pandemic that is described under the caption "THE CITY—COVID-19 Pandemic," could have an adverse impact on the rating of the Bonds, and there is no assurance that any credit rating that is given to the Bonds will be maintained for any period of time or that a rating may not be qualified, downgraded, lowered or withdrawn entirely by S&P if, in the judgment of S&P, circumstances so warrant, nor can there be any assurance that the criteria required to achieve the rating on the Bonds will not change during the period that the Bonds remain outstanding. Any qualification, downward revision, lowering or withdrawal of the ratings on the Bonds may have an adverse effect on the market price of the Bonds. Such ratings reflect only the current views of S&P (which could change at any time), and an explanation of the significance of such ratings may be obtained from S&P. Generally, S&P bases its ratings on information and materials furnished to them (which may include 53 296 of 324 information and material from the City that is not included in this Official Statement) and on investigations, studies and assumptions by S&P. The City has covenanted in the Continuing Disclosure Certificate to file notices of any rating changes on the Bonds with the Municipal Securities Rulemaking Board's Electronic Municipal Market Access System. See the caption "CONTINUING DISCLOSURE" and Appendix E. Notwithstanding such covenant, information relating to rating changes on the Bonds may be publicly available from S&P prior to such information being provided to the City and prior to the date by which the City is obligated to file a notice of rating change. Purchasers of the Bonds are directed to S&P and its website and official media outlets for the most current ratings with respect to the Bonds after the initial issuance of the Bonds. CONTINUING DISCLOSURE The City has covenanted in a Continuing Disclosure Certificate, dated the date of issuance of the Bonds (the "Continuing Disclosure Certificate"), for the benefit of the Owners and Beneficial Owners of the Bonds to provide certain financial information and operating data relating to the City by not later than each [March 31] following the end of the City's Fiscal Year (currently its Fiscal Year ends on June 30) (the "Annual Report"), and to provide notices of the occurrence of certain enumerated events. The Annual Report and the notices of enumerated events will be filed by the City with the Municipal Securities Rulemaking Board's Electronic Municipal Market Access System. The specific nature of the information to be contained in the Annual Report and the notice of enumerated events is set forth in Appendix E. These covenants have been made in order to assist the Underwriter in complying with Section (b)(5) of Rule 15c2-12, as amended. UNDERWRITING The Bonds are being purchased by Hilltop Securities Inc. (the "Underwriter"), pursuant to a purchase agreement, dated the date hereof, by and between the City and the Underwriter. The Underwriter will purchase the Bonds from the City at an aggregate purchase price of $ , representing the principal amount of the Bonds less $ of Underwriter's discount. The initial public offering prices stated on the inside front cover of this Official Statement may be changed from time to time by the Underwriter. The Underwriter may offer and sell the Bonds to certain dealers (including dealers depositing Bonds into investment trusts), dealer banks, banks acting as agents and others at prices lower than said public offering prices. MUNICIPAL ADVISOR The City has retained NHA Advisors LLC, San Rafael, California (the "Municipal Advisor") as its municipal advisor in connection with the sale of the Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or to assume any responsibility for the accuracy, completeness or fairness of the information contained herein. The Municipal Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal or other public securities. MISCELLANEOUS The foregoing and subsequent summaries or descriptions of provisions of the Bonds and the Trust Agreement and all references to other materials not purporting to be quoted in full are only brief outlines of some of the provisions thereof. Reference is made to said documents for full and complete statements of the provisions of such documents. The appendices attached hereto are a part of this Official Statement. Copies of the Trust Agreement, in reasonable quantities, may be obtained during the offering period from the Underwriter and thereafter upon request to the principal corporate trust office of the Trustee. Any statements 54 297 of 324 made in this Official Statement involving matters of opinion or estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. The execution and delivery of this Official Statement has been duly authorized by the City. This Official Statement is not to be construed as a contract or an agreement between the City and the purchasers or owners of any of the Bonds. CITY OF NATIONAL CITY By: City Manager 55 298 of 324 APPENDIX A AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 A-1 299 of 324 APPENDIX B ECONOMIC AND DEMOGRAPHIC INFORMATION REGARDING THE CITY OF NATIONAL CITY This Appendix sets forth general information about the City of National City (the "City') including information with respect to its finances. The following information concerning the, the County of San Diego (the "County ") and the State of California (the "State') is included only for general background purposes. It is not intended to suggest that the Bonds are payable from any source other than the moneys that are described herein. Most of the information in this Appendix is dated prior to the onset of the COVID-19 pandemic, which has had a significant adverse impact on the nation, State and local economy, including, but not limited to, a dramatic increase in unemployment levels. See the captions "THE CITY—COVID-19 Pandemic" and "RISK FACTORS Impacts and Potential Impacts of COVID-19 on the City." General Information The City is located in southwestern San Diego County, bordered by the City of San Diego to the north and east, San Diego Bay to the west, and the City of Chula Vista to the South. The City encompasses approximately 9.2 square miles has an estimated 2021 population of 62,000. The City was incorporated in 1887 and functions as a general law city and operates under a Council/Manager form of government. The City is governed by a five -member Council and a Mayor, who serves four-year overlapping terms, and, in addition to the City Treasurer and City Clerk, is elected on a citywide basis. The City Council appoints the City Manager and the City Clerk. Municipal services provided include a full range of services including general government, public safety (police, fire, disaster preparedness and building inspection), construction and maintenance of the City's infrastructure, economic development, affordable housing, cultural and recreational programs, library and literacy programs, and senior and nutrition services. Population The City has an estimated current population of 272,202. The table below sets forth recent total population information for the City, the County of Los Angeles and the State of California (the "State"). Table B-1 City of National City, County of San Diego and State of California Population City of National January I City County of San Diego State of California 2015 3,265,038 38,870,150 2016 3,285,150 39,131,307 2017 3,306,889 39,398,702 2018 3,326,318 39,586,646 2019 3,340,312 39,695,376 2020 3,343,355 39,782,870 B-1 300 of 324 Source: State of California, Department of Finance, E-4 Population Estimates for Cities, Counties and State, 2011-2020, with 2010 Census Counts. Employment and Industry The table below summarizes recent civilian labor force, civilian employment and civilian unemployment figures in the City, the County, the State and the United States. 2015 2016 2017 2018 2019 Table B-2 City of National City, County of San Diego, State of California and United States Labor Force, Employment and Unemployment Yearly Average Year and Area Civilian Labor Civilian Civilian Civilian Unemployment Force Employment(') Unemployment(2) Rate') National City % San Diego County 1,548,600 1,468,100 80,500 5.2 California 18,828,800 17,660,700 1,168,100 6.2 United States 157,130,000 148,834,000 8,296,000 5.3 National City % San Diego County 1,563,000 1,489,100 73,9000 4.7 California 19,021,200 17,980,100 1,041,100 5.5 United States 159,187,000 151,436,000 7,751,000 4.9 National City % San Diego County 1,572,800 1,509,600 63,200 4.0 California 19,176,400 18,257,100 919,300 4.8 United States 160,381,000 153,861,000 6,520,000 4.1 National City % San Diego County 1,581,500 1,528,100 53,500 3.4 California 19,280,800 18,460,700 820,100 4.3 United States 162,075,000 155,761,000 6,314,000 3.9 National City % San Diego County 1,590,600 1,539,900 50,700 3.2 California 19,411,600 18,627,400 784,200 4.0 United States 163,539,000 157,538,000 6,001,000 3.7 (1) Includes persons involved in labor-management trade disputes. (2) Includes all persons without jobs who are actively seeking work. (3) The unemployment rate is computed from unrounded data; therefore, it may differ from rates computed from rounded figures in this table. Source: California Employment Development Department, March 2019 Benchmark; U.S. Department of Labor, Bureau of Labor Statistics. B-2 301 of 324 The table below sets forth recent industry employment and labor force for the San Diego -Carlsbad MSA Metropolitan Statistical Area (the "MSA"). Annual industry employment information is not compiled by sector for the City. Type of Employment Table B-3 San Diego -Carlsbad MSA Industry Employment and Labor Force Annual Average 2015 2016 2017 2018 2019 Total Farm 9,100 8,900 8,700 9,300 9,600 Total Nonfarm 1,384,800 1,422,600 1,452,200 1,482,200 1,503,900 Total Private 1,148,700 1,180,300 1,205,900 1,234,100 1,254,200 Goods Producing 176,800 185,000 189,200 196,400 199,500 Mining and Logging 300 300 300 400 400 Construction 69,900 76,300 79,500 83,700 84,000 Manufacturing 106,600 108,400 109,400 112,300 115,100 Durable Goods 80,300 81,200 81,500 83,700 86,000 Nondurable Goods 26,300 27,200 27,900 28,600 29,000 Service Providing 1,208,000 1,237,600 1,263,000 1,285,800 1,304,400 Private Service Producing 971,900 995,400 1,016,700 1,037,700 1,054,800 Trade, Transportation and Utilities 219,300 220,900 224,700 225,100 224,000 Wholesale Trade 44,100 43,700 43,800 43,800 44,200 Retail Trade 146,800 147,500 149,000 148,000 145,400 Transportation, Warehousing and Utilities 28,400 29,700 32,000 33,300 34,400 Information 23,400 23,200 23,400 23,600 23,500 Financial Activities 71,400 73,000 74,600 76,000 76,400 Professional and Business Services 229,500 234,700 239,000 248,900 256,600 Educational and Health Services 192,700 198,700 204,300 208,900 216,000 Leisure and Hospitality 182,400 190,400 195,600 199,600 202,400 Other Services 53,200 54,400 55,000 55,500 55,800 Government 236,200 242,200 246,300 248,100 249,600 Total, All Industries 1,393,900 1,431,500 1,460,900 1,491,400 1,513,500 Note: The "Total All Industries" data is not directly comparable to the employment data found herein. Source: State of California, Employment Development Department, Labor Market Information Division, San Diego -Carlsbad MSA Industry Employment & Labor Force - by Annual Average, March 2019 Benchmark. B-3 302 of 324 Major Employers The table below sets forth the principal employers in the City as of June 30, 2019. Table B-4 City of National City Principal Employers Employer Number of Employees Percent of Total Employment Source: City of National City, Comprehensive Annual Financial Report, Fiscal Year Ended June 30, 2020; page 196. Commercial Activity The table below presents taxable sales for the years 2016 through 2020 for the City. Year Table B-5 City of National City Total "Taxable Transactions and Number of Sales Permitstll Retail and Food Total Outlets Retail and Food Taxable Taxable Permits Transactions Total Permits Transactions 2016 2,976 2,457,307,337 4,896 2,752,844,391 2017 3,055 2,527,879,249 5,055 2,842,456,846 2018 3,132 2,635,083,037 5,296 2,979,611,488 2019 3,187 2,696,570,948 5,443 3,039,148,903 2020 3,203 1,060,390,760 5,545 1,193,291,730 00) Reflects latest information available. Source: Taxable Sales in California, California Department of Tax and Fee Administration for 2016-2020. B-4 303 of 324 Table B-6 City of National City Taxable Retail Sales(') Type of Business 2016 2017 2018 2019 2020 Motor Vehicle & Parts Dealers Home Furnishings & Appliance Stores Building Materials & Garden Equipment & Supplies Food & Beverage Stores Gasoline Stations Clothing & Clothing Accessories Stores General Merchandise Stores Food Services & Drinking Places Other Retail Group Retail Stores Totals All Other Outlets Total All Outlets (') Reflects latest information available. (2) Dollar amounts are in thousands. Source: California State Board of Equalization. Building Activity The table below summarizes recent building activity in the City, reflecting the latest available information. Type Valuation ($000's) Residential: Non -Residential: Total Valuation: New Housing Units: Single Family Multi Family Total Units: Table B-7 City of National City Building Permit Valuations (in thousands of dollars) 2015 2016 2017 2018 2019 $ $ $ $ $ $ $ $ $ $ Note: Totals may not add to sums because of independent rounding. Source: Construction Industry Research Board. B-5 304 of 324 APPENDIX C SUMMARY OF CERTAIN PROVISIONS OF THE TRUST AGREEMENT The following is a summary of certain provisions of the Trust Agreement that are not described elsewhere. This summary does not purport to be comprehensive and reference should be made to the applicable document for a full and complete statement of the provisions thereof. C-1 305 of 324 APPENDIX D FORM OF BOND COUNSEL OPINION [Closing Date] City Council City of National City National City, California Re: $ City of National City 2021 Taxable Pension Obligation Bonds Ladies and Gentlemen: We have examined certified copies of proceedings of the City of National City (the "City") relative to the issuance and sale by the City of its 2021 Taxable Pension Obligation Bonds in the aggregate principal amount of $ (the "Bonds"), and such other information and documents as we consider necessary to render this opinion. The Bonds have been issued pursuant to the authority contained in Articles 10 and 11 of Chapter 3 of Division 2 of Title 5 of the Government Code of the State of California, as now in effect and as it may from time to time hereafter be amended or supplemented, and the Trust Agreement, dated as of 1, 2021 (the "Trust Agreement"), by and between the City and as trustee (the "Trustee"). The Bonds have been issued for the purpose of refunding the City's obligations to the California Public Employees Retirement System ("Ca1PERS") evidenced by the contract between the Board of Administration of Ca1PERS and the City Council of the City, effective October 1, 1948, as such contract has been amended from time to time, to pay unamortized, unfunded accrued liability with respect to pension benefits under the Public Employees' Retirement Law, constituting Part 3 of Division 5 of Title 2 of the California Government Code. In such connection, we have reviewed the Trust Agreement, certificates of the City, the Trustee, and others, opinions of City Attorney and counsel to the Trustee, and such other documents, opinions and matters to the extent we deemed necessary to render the opinions set forth herein. In rendering this opinion, we have relied upon certain representations of fact and certifications made by the City, the initial purchasers of the Bonds and others. We have not undertaken to verify through independent investigation the accuracy of the representations and certifications relied upon by us. The opinions expressed herein are based upon our analysis and interpretation of existing statutes, regulations, rulings and judicial decisions, including the default judgment entered on June 15, 2021 by the Superior Court of the County of San Diego in the action City of National City, California v. All Persons Interested et al. (Case No. 37-2020-00045564-CU-MC-CTL) and cover certain matters that are not directly addressed by such authorities. The opinions that are expressed herein may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. We have not undertaken to determine, or to inform any person, whether any such actions or events are taken or do occur. Our engagement as to the Bonds terminates as of the date of issuance of the Bonds. The Bonds are dated the date hereof, and mature on the dates and bear interest at the rates per annum set forth in the Trust Agreement. The Bonds are registered bonds in the forms set forth in the Trust Agreement, redeemable in the amounts, at the times and in the manner provided for in the Trust Agreement. All terms which are not deemed herein have the meanings ascribed to those terms in the Trust Agreement. D-1 306 of 324 Based upon our examination of all of the foregoing, and in reliance thereon and on all matters of fact as we deem relevant under the circumstances, and upon consideration of applicable laws, we are of the opinion that: 1. The Trust Agreement has been duly authorized, executed and delivered by the City and, assuming due authorization, execution and delivery by the Trustee, constitutes the valid and binding obligation of the City enforceable in accordance with its terms. 2. The Bonds have been duly authorized and issued by the City and are valid and binding obligations of the City enforceable in accordance with their terms. The Bonds do not constitute a debt of the City, the State of California or any political subdivision thereof within the meaning of any constitutional or statutory debt limit or restriction, and do not constitute an obligation for which the City, the State of California or any political subdivision thereof is obligated to levy or pledge any form of taxation or for which the City, the State of California or any political subdivision thereof has levied or pledged any form of taxation. 3. Upon issuance and authentication of the Bonds in accordance with the Trust Agreement, the Bonds will be entitled to the benefits of the Trust Agreement. 4. Interest on the Bonds is exempt from State of California personal income tax. The opinions that are expressed herein may be affected by actions taken (or not taken) or events occurring (or not occurring) after the date hereof. We have not undertaken to determine, or to inform any person, whether any such actions or events are taken or do occur. Our engagement with respect to the Bonds terminates on the date of their issuance. The Trust Agreement permits certain actions to be taken or to be omitted if a favorable opinion of Bond Counsel is provided with respect thereto. Other than expressly stated herein, we express no other opinion regarding tax consequences with respect to the Bonds. Our opinion is limited to matters governed by the laws of the State of California. We assume no responsibility with respect to the applicability or the effect of the laws of any other jurisdiction. The opinions that are expressed herein are based upon our analysis and interpretation of existing statutes, regulations, rulings and judicial decisions and cover certain matters not directly addressed by such authorities. We call attention to the fact that the rights and obligations under the Trust Agreement and the Bonds are subject to bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws affecting creditors' rights, to the application of equitable principles if equitable remedies are sought, to the exercise of judicial discretion in appropriate cases and to limitations on legal remedies against public agencies in the State; provided, however, that we express no opinion with respect to any indemnification, contribution, penalty, choice of law, choice of forum or waiver provisions contained in the Bonds or the Trust Agreement. We express no opinion herein as to the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds and expressly disclaim any duty to advise the Owners of the Bonds with respect to matters contained in the Official Statement. Respectfully submitted, D-2 307 of 324 APPENDIX E FORM OF CONTINUING DISCLOSURE CERTIFICATE Upon issuance of the Bonds, the City proposes to enter into a Continuing Disclosure Certificate in substantially the following form: This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the City of National City (the "City") in connection with the issuance by the City of its $ 2021 Taxable Pension Obligation Bonds (the "Bonds"). The Bonds are being issued pursuant to a Trust Agreement, dated as of 1, 2021 (the "Trust Agreement"), by and between the City and , as trustee (the "Trustee"). The City covenants and agrees as follows: 1. Purpose of this Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the City for the benefit of the Holders and Beneficial Owners of the Bonds and in order to assist the Participating Underwriter in complying with the Rule. 2. Definitions. In addition to the definitions that are set forth in the Trust Agreement, which apply to any capitalized term that is used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: Annual Report. The term "Annual Report" means any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. Beneficial Owner. The term `Beneficial Owner" means any person which: (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries); or (b) is treated as the owner of any Bonds for federal income tax purposes. EMMA. The term "EMMA" means the Municipal Securities Rulemaking Board's Electronic Municipal Market Access System for municipal securities disclosures, maintained on the Internet at http://emma.msrb.org/. Financial Obligation. The term "Financial Obligation" means a: (A) debt obligation; (B) derivative instrument entered into in connection with, or pledged as security or a source of payment for, an existing or planned debt obligation; or (C) guarantee of (A) or (B). The term "Financial Obligation" does not include municipal securities as to which a final official statement has been provided to the Municipal Securities Rulemaking Board consistent with the Rule. Fiscal Year. The term "Fiscal Year" means the one-year period ending on the last day of June of each year. Holder. The term "Holder" means a registered owner of the Bonds. Listed Events. The term "Listed Events" means any of the events listed in Sections 5(a) and (b) of this Disclosure Certificate. Official Statement. The term "Official Statement" means the Official Statement dated , 2021 relating to the Bonds. Participating Underwriter. The term "Participating Underwriter" means any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. Rule. The term "Rule" means Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. E-1 308 of 324 3. Provision of Annual Reports. (a) The City shall provide not later than each [March 31] following the end of its Fiscal Year (commencing [March 31], 2022 with the Fiscal Year 2020-21 Annual Report) to EMMA an Annual Report relating to the immediately preceding Fiscal Year which is consistent with the requirements of Section 4 of this Disclosure Certificate, which Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in Section 4 of this Disclosure Certificate. (b) If the City is unable to provide to EMMA an Annual Report by the date required in subsection (a), the City shall send in a timely manner to EMMA a notice in the manner prescribed by the Municipal Securities Rulemaking Board. 4. Content of Annual Reports. The Annual Report shall contain or incorporate by reference the following: (a) Audited financial statements of the City for the prior Fiscal Year, prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the City's audited financial statements are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they come available. (b) To the extent not included in the audited financial statements provided pursuant to the foregoing Section 4(a), the Annual Report shall contain the following information: (i) Major Revenues and Fees by Source [for the current fiscal year], which may be in the form of Table 4 set forth under the caption "CITY FINANCIAL INFORMATION —Tax Revenues of the City" in the Official Statement; (ii) Total property assessed values within the City for the current fiscal year, which may be in the form of Table 5 set forth under the caption "CITY FINANCIAL INFORMATION —Property Taxes" in the Official Statement; (iii) Property tax levies and collections [for the current fiscal year], which may be in the form of Table 7 set forth under the caption "CITY FINANCIAL INFORMATION —Property Taxes" in the Official Statement; (iv) Top ten secured taxpayers within the City [for the current fiscal year], which may be in the form of Table 8 set forth under the caption "CITY FINANCIAL INFORMATION —Property Taxes" in the Official Statement; and (v) Summary of General Fund -Supported Obligations as of the end of the prior Fiscal Year, which may be in the form of Table 9 set forth under the caption "CITY FINANCIAL INFORMATION —Other Indebtedness." The items described above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which have been submitted to EMMA; provided, that if any document included by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board; and provided further, that the City shall clearly identify each such document so included by reference. 5. Reporting of Significant Events. E-2 309 of 324 (a) Pursuant to the provisions of this Section 5, the City shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds in a timely manner not more than ten (10) Business Days after the event: 1. principal and interest payment delinquencies; 2. unscheduled draws on debt service reserves reflecting financial difficulties; 3. unscheduled draws on credit enhancements reflecting financial difficulties; 4. substitution of credit or liquidity providers, or their failure to perform; 5. adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability or Notices of Proposed Issue (IRS Form 5701 TEB); 6. tender offers; 7. defeasances; 8. ratings changes; 9. bankruptcy, insolvency, receivership or similar proceedings. Note: For the purposes of the event identified in subparagraph (9), the event is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governmental body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person; and 10. default, event of acceleration, termination event, modification of terms or other similar events under the terms of a Financial Obligation of the City, any of which reflect financial difficulties. (b) Pursuant to the provisions of this Section 5, the City shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material, in a timely manner not more than ten (10) Business Days after occurrence: 1. unless described in Section 5(a)(5), other notices or determinations by the Internal Revenue Service with respect to the tax status of the Bonds or other events affecting the tax status of the Bonds; 2. modifications to the rights of Bond holders; 3. Bond calls; 4. release, substitution or sale of property securing repayment of the Bonds; 5. non-payment related defaults; 6. the consummation of a merger, consolidation, or acquisition involving the City or the sale of all or substantially all of the assets of the City, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms; E-3 310 of 324 7. appointment of a successor or additional trustee or the change of the name of a trustee; and 8. incurrence of a Financial Obligation of the City, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the City, any of which affect security holders, if material. (c) If the City determines that knowledge of the occurrence of a Listed Event under Section 5(b) would be material under applicable federal securities laws, the City shall file a notice of such occurrence with EMMA in a timely manner not more than ten (10) Business Days after the event. 6. Termination of Obligation. The City's obligations under this Disclosure Certificate with respect to the Bonds shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If any such termination occurs prior to the final maturity of the Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under Section 5(c). 7. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, if the City has received an opinion of counsel knowledgeable in federal securities laws to the effect that such amendment or waiver would not, in and of itself, cause the undertakings herein to violate the Rule if such amendment or waiver had been effective on the date hereof but taking into account any subsequent change in or official interpretation of the Rule. 8. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in any notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the City shall not thereby have any obligation under this Disclosure Certificate to update such information or include it in any future notice of occurrence of a Listed Event. 9. Default. In the event of a failure of the City to comply with any provision of this Disclosure Certificate, any Holders or Beneficial Owners of at least 50% aggregate principal amount of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Trust Agreement, and the sole remedy under this Disclosure Certificate in the event of any failure of the City to comply with this Disclosure Certificate shall be an action to compel performance. No Holder or Beneficial Owner of the Bonds may institute such action, suit or proceeding to compel performance unless they shall have first delivered to the City satisfactory written evidence of their status as such, and a written notice of and request to cure such failure, and the City shall have refused to comply therewith within a reasonable time. 10. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Participating Underwriter and Holders and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. Dated: , 2021 CITY OF NATIONAL CITY By: Its: City Manager E-4 311 of 324 APPENDIX F BOOK -ENTRY SYSTEM The information in this section concerning DTC and DTC's book -entry only system has been obtained from sources that the City and the Underwriter believe to be reliable, but none of the City or the Underwriter takes any responsibility for the completeness or accuracy thereof The following description of the procedures and record keeping with respect to beneficial ownership interests in the Bonds, payment of principal, premium, if any, accreted value, if any, and interest on the Bonds to DTC Participants or Beneficial Owners, confirmation and transfers of beneficial ownership interests in the Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC. The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the Bonds. The Bonds will be issued as fully -registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully registered bond will be issued for each annual maturity of the Bonds, each in the aggregate principal amount of such annual maturity, and will be deposited with DTC. DTC, the world's largest securities depository, is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book -entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual F-1 312 of 324 Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such maturity to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to Bonds unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or the Trustee, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the Trustee or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. A Bond Owner shall give notice to elect to have its Bonds purchased or tendered, through its Participant, to the Trustee, and shall effect delivery of such Bonds by causing the Direct Participant to transfer the Participant's interest in the Bonds, on DTC's records, to the Trustee. The requirement for physical delivery of Bonds in connection with an optional tender or a mandatory purchase will be deemed satisfied when the ownership rights in the Bonds are transferred by Direct Participants on DTC's records and followed by a book -entry credit of tendered Bonds to the Trustee's DTC account. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the City or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, physical certificates are required to be printed and delivered. The City may decide to discontinue use of the system of book -entry only transfers through DTC (or a successor securities depository). In that event, bonds will be printed and delivered to DTC. THE TRUSTEE, AS LONG AS A BOOK -ENTRY ONLY SYSTEM IS USED FOR THE BONDS, WILL SEND ANY NOTICE OF REDEMPTION OR OTHER NOTICES TO OWNERS ONLY TO DTC. ANY FAILURE OF DTC TO ADVISE ANY DTC PARTICIPANT, OR OF ANY DTC PARTICIPANT TO NOTIFY ANY BENEFICIAL OWNER, OF ANY NOTICE AND ITS CONTENT OR EFFECT WILL NOT AFFECT THE VALIDITY OF SUFFICIENCY OF THE PROCEEDINGS RELATING TO THE REDEMPTION OF THE BONDS CALLED FOR REDEMPTION OR OF ANY OTHER ACTION PREMISED ON SUCH NOTICE. F-2 313 of 324 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 19, 2021 AGENDA ITEM NO.: ITEM TITLE: Approval of 2021 Pension Obligation Bonds (POBs). PREPARED BY: Molly Brennan, Administrative Services Director DEPARTMENT: Finance PHONE: 619-336-4265 APPROVED BY: .///1-4� EXPLANATION: See attached. FINANCIAL STATEMENT: APPROVED: FINANCE APPROVED: MIS $24.2 million estimated cumulative savings, and savings are projected to average $2.6 million from FY23 —36. Total net present value savings is approximately $23.4 million over the 21-year term of the POBs. Savings are based on current interest rates of 3.10% and assumed average future investment returns of 6.50% by CaIPERS. ENVIRONMENTAL REVIEW: This is not a project and, therefore, not subject to environmental review. ORDINANCE: INTRODUCTION FINAL ADOPTION STAFF RECOMMENDATION: That City Council move to adopt a resolution confirming the issuance of POBs and related documents. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Staff Report 2. Resolution Approving Preliminary Official Statement & Continuing Disclosure Certificate 3. Preliminary Official Statement 314 of 324 CALIFORNIA NATIONAL CtTy anti INCORPORATED City Council Agenda Report October 19th City Council Meeting Approval of 2021 Pension Obligation Bonds ITEM City staff, in conjunction with City Council, have explored the use of pension obligation bonds ("POBs" or "Bonds") to meet several objectives, including: (1) generating cash flow savings to the City and taxpayers using historically low interest rates (currently 3.00% — 3.25%) relative to the current California Public Employees Retirement System (Ca1PERS) discount rate of 7.00%; (2) to create a repayment schedule for the City's unfunded accrued pension liabilities ("UAL") that is more manageable and creates budgetary savings; and (3) enhance budget predictability and long-term fiscal sustainability by creating a smoother repayment shape at a lower level. After an initial workshop on October 6, 2020, to discuss a UAL restructuring (including benefits and risks), City Council approved the base POB documents on October 20, 2020 and approved the initiation of a validation process through the court system. The successful validation process ended in July 2021. As the market for POBs has improved since 2020 (lower interest rates), staff recommended continuing the financing process to issue a POB this fall to secure savings. At a workshop on September 7, 2021, City Council received an update on recent Ca1PERS events (including actions related to recent returns and imminent assumption changes), a preliminary recommendation for the UAL restructuring strategy, and stress testing analysis to help quantify the risk of a POB. Staff and its Municipal Advisor NHA Advisors, LLC have continued to analyze dozens of scenarios since that workshop and have now finalized a recommended plan of finance. City Council is now being asked to adopt a resolution approving an Official Statement and Continuing Disclosure Certificate and related actions. BACKGROUND/DISCUSSION Over the last 8 years, the City of National City's (the "City") UAL for its Ca1PERS Miscellaneous and Safety Plans has grown 74.6%, from $70.8 million to about $123.7 million as of the 6/30/20 valuation report. The UAL represents the gap between what is needed to pay retiree benefits versus how much the City has in current Ca1PERS assets. Annual payments made to Ca1PERS to pay off the UAL have grown rapidly: from $3.9M in FY 2016 to $8.8M in FY 2022 and are projected to grow to $11.3M by FY 2025 and $13.0M by FY 2031 (based on the latest actuarial reports excluding the recent FY 2021 investment return of 21.3%). The $123.7 million UAL is not immediately due to Ca1PERS and will be amortized over time (different components amortized over different time periods, typically between 3 and 28 years) at the discount rate of 7.00%. Pension cost increases are the largest financial challenge facing most California cities and are primarily due to factors outside of their control such as actuarial assumption changes made by Ca1PERS, below average investment returns over the last 20 years. 315 of 324 Update on Recent Ca1PERS Returns and Likely Assumption Changes: While the $123.7 million UAL is based on the latest actuarial reports released in August 2021 and incorporates the 4.70% Ca1PERS returns from FY 2020, the reports do not include the benefit of the recent FY 2021 21.30% return or any new potential assumption changes. Based on existing Ca1PERS policy, the 21.3% rate of return for FY 2021 triggers a discount rate reduction from 7.00% to 6.80%. In November there is a chance that the Ca1PERS board will elect to lower the rate even more based on an updated asset and liability study currently underway. Targets being considered include 6.25%, 6.50% and 6.75%. For purposes of modeling the estimated savings and annual payments from issuing POBs, a 6.50% assumption is being used by the City and its team. 6.50% is a likely outcome according to many experts, and also a more conservative method with which to analyze the potential savings on the POB than the current 7% discount rate. As shown in the chart below, the City's UAL will be reduced from $123.7 million to approximately $111.7 million after incorporating the 21.3% returns and a hypothetical 6.50% discount rate. While the projected reduction is beneficial for the City, the UAL debt would continue to amortize at the 6.50% discount rate and on a repayment schedule that is very un-even, with spikes in the early years and through 2025 (see green line below), ultimately being paid off by FY 2046/47. Payments over the next decade would range from $10M to $13M annually, which is significantly higher than the $8.8M that the City recently paid on its UAL for FY 2022. It should also be noted that a discount rate reduction will not only increase the UAL, but also the City's Normal Cost payments that are required as a percent of payroll for current employees. Under either repayment model (blue bars or green line) the City would need to use reserves or cut expenditures in order have enough funding to make the future required annual payments to Ca1PERS. Current UAL Payments vs. Projected Payments @ 6.50% Discount Rate & 21.3% Returns 0 $14.0 $13.0 $12.0 $11.0 $10.0 $9.0 $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $ 2.0 $1.0 $- $123.7M UAL (Current Payments to Amortize the UAL) nal 1 1 1 $111.7M UAL @ 6.50% Discount Rate & 1 , 1 1 , _ 1 1 21.3% Returns (Projected New Payments to 1 1 1 1 1 1 1 1 1 1 1 1 Amortize the UAL) 11111111111i:CI 1111111111111i111 111111111111111'11 11111111111111111i1 11111111111111111111 1111111111111111111►1 11111111111111111111i 111111111111111111111► m a Lrl LOr` oo rn o N m t.) N co m o N m N N N N N N Ni N rr1 en m m m ▪ m m m m m V dr dr dr a dr dr dr 0 0 0 0 0 0 0 0 0 O 0 0 O 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N N N N N N N N N N N N N N N N N N N N N UAL Payments (Current Projections) Projected UAL Payments (6.50% Discount Rate) 316 of 324 Benefits of a UAL Restructuring using a POB: The City is considering issuing a POB to pay off a portion of its UAL to achieve several objectives: • Fiscal Sustainability Tool: Ability to "re -shape" the City's overall pension repayment in a way that creates enhanced long-term fiscal sustainability, budgetary predictability, and enhanced resiliency to future economic shocks • Near -Term Budgetary Savings: By modifying the current near term "peak" in scheduled payments into a more predictable (i.e., level) structure, near term cash flow savings are generated • Interest Rate Savings "Arbitrage": City can borrow at rates much lower (currently 3.00% — 3.25% depending on term & credit) than the current Ca1PERS discount rate of 7.00% or the anticipated discount rate of 6.50% • Increase Funded Ratio: Current ratios range from 70.5% (Miscellaneous) to 64.3% (Safety); these could be increased to approximately 95% through the restructuring • Modify Maturity: Shorten or lengthen repayment period as deemed most fiscally appropriate. The recommendation, discussed below, is to shorten the payment term to about 21 years, from the current term of 25 years. Recent Due Diligence and Final Recommended UAL Restructuring Strategy: Since the time of the September 7th workshop, City staff has been working diligently with NHA Advisors and Hilltop Securities to evaluate over a dozen different structuring options for the POB. These included different sizes, different terms/maturities, and evaluating the budgetary impact assuming a variety of discount rates (6.25%, 6.50% and 6.75%) and projected new funding ratios. Staff has also been utilizing this analysis to update the City's long-term financial forecast to ensure that a prudent and affordable structure is executed. Staffs final recommendation is to fund 70% ($83M) of the current UAL, which is about 75% of the projected new UAL assuming a reduction to a 6.50% discount rate. After rigorous discussions and analysis, this strategy is being recommended as it achieves multiple objectives, including: (1) maximizing savings, (2) reducing the risk of overfunding by only paying down 70-75% of the UAL, (3) creating a more affordable annual payment at around $7.6M — in line with FY 2021 levels and significantly below the $10M-$13M annual payments that the City would face without a POB and (4) increasing the funding ratios of the City's pension plans to about 95%. It should be noted that if Ca1PERS reduces its discount rate below 6.50% or underperforms on its investments the City's UAL will go up and annual payments would be higher. For example, annual payments will go to about $9M per year if they lower the discount rate to 6.25%. This is the annual payment level the City budgeted and paid in FY 2022. In this event, the POB would save the City from having to dip into reserves, but there would not be any additional savings available for on- going operating expenditures. Discount rate changes and investment underperformance are factors outside of the City's control, but it is important to conservatively plan for these events while developing long term budget projections. Section 115 Trust and Budget Predictability: The City has also been very disciplined about building its Section 115 Trust, which currently has a balance of $7.2 million. Since there will be fluctuations in the future annual pension payments to Ca1PERS, staff will utilize the funds in the Section 115 Trust as a "shock absorber," funding any amounts (to the extent possible) above the 3 317 of 324 projected $7.6M level using those monies. This will allow the City to further enhance the predictability of the annual amount of budgeted pension expenditures. Estimated Savings from $83M POB: The table/charts below summarize the estimated savings from the proposed 2021 POB. It is important to note that the interest rate assumptions are estimated based on current market conditions and could change prior to pricing the bonds in late October/early November. It is also important to note that these bonds will be structured with a 10- year call feature, meaning that the City will have the opportunity to pay this debt off early (after 10 years) with no penalty or refinance the debt if interest rates are lower at that time. The City may consider utilizing funds built up in its Section 115 Trust or other reserves to pay off these bonds early if deemed financially strategic in the future. As shown below, cumulative savings are estimated at $24.2 million over the 21-year term of the POBs. Estimated present value savings are projected at approximately $23.4 million or about 26.0% of refinanced UAL. Through FY 2036, the City is expected to benefit from approximately $37.1 million in cash flow savings, or $2.6 million on an average annual basis for the next 15 years. As noted before, the majority of these savings allows the City to avoid having to use reserves to fund the rapidly increasing UAL payments with Ca1PERS. The $7.6M projected annual payment is in line with FY 2021 budgeted figures and brings the City's payments back to a more affordable level. The savings metrics shown below are estimated based on current market conditions and a 6.50% Ca1PERS discount rate and investment returns. Projected savings is ultimately dependent on future Ca1PERS returns and assumption changes, which are unknown at the time of issuance (see "Risks and Considerations" below). Estimated Savings from 2021 POB Metrics 21-Year POB $ UAL Funded (11/16/21) % UAL Funded (Current Asset Valuations) Funded Ratio (Current Asset Valuations) $83,260,000 70% 90% Projected UAL After 6.5% Discount Rate $111,650,223 % UAL Funded (Projected After FY 2021 Returns) 75% Funded Ratio (Projected After FY 2021 Returns) 95% Maturity 21 Years Average Life 11.8 Years All -In Interest Rate 3.10% Present Value Savings (%) 26.01% Present Value Savings ($) $23,417,884 Cumulative Savings $24,243,835 Savings (2023-2036) $37,081,215 Avg. Annual Savings (2023-2036) $2,648,658 Avg. Annual Payments Through Maturity (POB + Unrefunded UAL) $7,599,759 4 318 of 324 $13 $12 $11 $10 $9 $8 $7 $6 $5 $4 $3 $2 $1 $- Projected UAL Payments @ 6.50% Discount Rate vs New Aggregate (PO + Unrefunded UAL) Payments 1 1 1 1 1! 1! I■!■■ I I I I I I I I I I I I I I " I I I I I I I I I I I I I I " I I I I I I I I I I I I I I " iiiiiiiiiiiiii 8 ii m a L r- co m o N m a u L co rn o N m 1 Ln to r` N N N N N N N m CO m m m m m m m m V' V' d' V' d' d- O O O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N N N N N N N N N N N N N N N N Projected UAL Payments (6.5% Discount Rate) -21-Year POB All savings estimates assume CalPERS earns 6.50% in the future Numerous agencies (e.g., Santa Ana, Commerce, Buena Park, San Fernando, Whittier, Covina, Livermore Recreation & Parks City, Redondo Beach, Willows, Auburn, Corte Madera, Manhattan Beach, Huntington Beach, Orange, Chula Vista, Downey, El Cajon and several others) throughout California have recently refinanced their UAL to restructure the payment pattern and increase the funding level of their pension plans. Since last Spring, over 70 Ca1PERS members have restructured their UAL and many more are expected to do so this Fall. Interest rates set on these recent financings have ranged from about 2.25% to 4.25%, with rates dictated by market conditions at the time of pricing, credit rating of the issuer, and length of term of the bonds. During the last week of September and first week of October, four additional POBs were priced (cities of Corona, Lakeport and two fire districts). Risks and Considerations: The ultimate actual savings from a UAL restructuring is dependent on two factors: (1) actual interest rates at the time of pricing the new bond and (2) future Ca1PERS returns, which is an unknown at the time of bond issuance. The rule of thumb for evaluating the benefit of a UAL restructuring is that the City will be better off (i.e. the UAL refunding will produce positive savings) if Ca1PERS earns more than the interest rate on the Bonds (currently estimated at around 3.10%). While past performance does not guarantee future results, Ca1PERS' historical 30-year returns are 8.4%, 6.9% for the last 20 years on average, 8.5% for last 10 years and 10.3% for the last 5 years. Stress Testing: In order to better assess the risk of the proposed POB, the City's finance team analyzed the reduction in savings assuming various situations of Ca1PERS investment performance. 319 of 324 These "what -if" situations include Ca1PERS reducing the discount rate to (and earning annually) 6.00% and also reducing the discount rate to (and earning annually) 5.00%. In addition, the scenario of a market crash was also calculated. The scenario of a negative 5.00% investment return (� 12% off its target) in the first year after the POB is issued, as well as a negative 15% (� 22% off its target) were also calculated. For both, returns after the initial market crash are assumed to be 6.50%. Estimated UAL Change to 5% Discount Rate Sensitivity ($83M Change to 6% Discount Rate POB) -5% Inv Returns (FY 2023) -15% Inv Returns (FY 2023) Baseline PV Savings $23,417,884 $23,417,884 $23,417,884 $23,417,884 Reduction in PV Savings $13,411,302 $4,771,851 $8,653,891 $16,179,013 Net PV Savings ($) $10,006,582 $18,646,033 $14,763,993 $7,238,871 Net PV Savings (%) 11.53% 21.48% 17.01% 8.34% As the table above shows, PV saving is reduced under these stress tests, however, the City would still be better off having issued the POB than if it had not. Based on current estimates, the POB structure would be expected to withstand a 24.6% near -term market crash (negative 24.6% returns in FY 2023), generating neutral present value savings. While reinvestment risk is unavoidable, the stress tests demonstrate that the risks are manageable, and that the City would be better off having issued the POB even under these more pessimistic situations. If there were a future market downturn, and as noted on page 3, the City could use reserves in the 115 pension trust funds to address any new UAL and re -invest those monies at a lower entry point in the stock market (dollar cost averaging). PENSION OBLIGATION BOND DOCUMENTS FOR REVIEW AND APPROVAL On October 20, 2020, the City Council approved a resolution authorizing the issuance of pension obligation bonds to refund a portion of the City's obligation owed to Ca1PERS and to initiate a judicial validation action. With the assistance of bond counsel, the City successfully obtained a default judgment in the action in late June, and the 30-appeal period expired in late July. It is therefore now appropriate and timely to approve the preliminary Official Statement and Continuing Disclosure Certificate so the bonds can be sold via public offering. The resolution (Attachment #2) being recommended for approval tonight authorizes staff to complete the pension obligation financing, and approves forms of the following documents: 1. Preliminary Official Statement (Attachment #3); and 2. Continuing Disclosure Certificate (Included as an appendix within the Preliminary Official Statement) Preliminary Official Statement: Disclosure Counsel prepares a preliminary Official Statement with input from the financing team including tables relating to the City's general fund finances. Following City Council authorization, the preliminary Official Statement will be distributed by the Underwriter (Hilltop Securities) and used as the primary marketing document to prospective bond purchasers. A table of contents identifies critical topics such as the plan of finance, security for the bonds, information on the City, information on the general fund of the City, the continuing i 320 of 324 disclosure requirements and the form of opinion of bond counsel. The agenda packet includes a draft of the preliminary Official Statement that the financing team considers to be essentially final. A final Official Statement will be made available shortly after the pension obligation bonds are sold; it will be identical to the preliminary Official Statement except that it will reflect the final bond sale information. The distribution of the preliminary Official Statement and the final Official Statement is subject to the federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws require the preliminary Official Statement to include all facts that would be material to an investor in the pension obligation bonds. Material information exists where there is a substantial likelihood that the information would have actual significance in the deliberations of the reasonable investor when deciding whether to buy or sell securities. The Securities and Exchange Commission (SEC), the agency with regulatory authority over compliance with the federal securities laws, has indicated that if a member of a legislative body, like the City Council, has knowledge of any facts or circumstances that an investor would want to know prior to investing in securities, like the pension obligation bonds, whether relating to their repayment, taxable status, undisclosed conflicts of interest with interested parties, or otherwise, he or she should endeavor to discover whether such facts are adequately disclosed in the preliminary Official Statement. The steps that a member of the City Council could take to fulfill this obligation include becoming familiar with the preliminary Official Statement and questioning staff and other members of the financing team about the disclosure of such facts. Continuing Disclosure Certificate: The Continuing Disclosure Certificate will require the City to provide certain annual financial information to bondholders, such as the audit and updates to certain tabular data included in the Official Statement. NEXT STEPS Upon approval of the Preliminary Official Statement and Continuing Disclosure Certificate, the City's financing team will begin the process of marketing the POBs to investors. It is expected that the City will sell its POBs in late October or early November and close the financing in mid - November. However, it is important to note that the City's financing team is actively monitoring current market conditions and other financing considerations in determining the best time to sell the bonds into the market. Assuming City Council approval, the financing team is prepared to move quickly to sell the POBs at the optimal time and maximize the City's benefit. FISCAL IMPACT Costs to execute the issuance of the POBs is included in the financing and there is no general impact to General Fund budget related to those costs; the only cost that is non -contingent is the credit rating fee, which has an estimated cost of $50,250. However, in the event this transaction was to be delayed, it is anticipated that the credit rating fee can still be financed by the bond issuance at a later financing date. Cumulative savings is estimated at $24.2 million, and savings are projected to average $2.6 million from FY 2023 — 2036. Total net present value savings is approximately $23.4 million over the 21-year term of the POBs. As noted, these savings are based on current interest rates (which could change by the time the City goes to market) and assumed average future investment returns of 6.50% by Ca1PERS. 321 of 324 RECOMMENDATIONS That City Council move to adopt a resolution confirming the issuance of POBs and related documents. 322 of 324 The following page(s) contain the backup material for Agenda Item: City Manager Report. (City Manager) Please scroll down to view the backup material. 323 of 324 Item # 10/19/21 City Manager Report (City Manager) 324 of 324