HomeMy WebLinkAbout2001 04-24 CC AGENDA PKTAGENDA OF A REGULAR MEETING
NATIONAL CITY COUNCIL
COUNCIL CHAMBERS
1243 NATIONAL CITY BOULEVARD
REGULAR MEETING - TUESDAY, APRIL 24, 2001 - 6:00 P.M.
OPEN TO THE PUBLIC
PLEASE COMPLETE A REQUEST TO SPEAK FORM PRIOR TO THE
COMMENCEMENT OF THE MEETING AND SUBMIT IT TO
THE CITY CLERK
IT IS THE INTENTION OF YOUR CITY COUNCIL TO BE RECEPTIVE TO YOUR
CONCERNS IN THIS COMMUNITY. YOUR PARTICIPATION IN LOCAL
GOVERNMENT WILL ASSURE A RESPONSIBLE AND EFFICIENT CITY OF
NATIONAL CITY. WE INVITE YOU TO BRING TO THE ATTENTION OF THE CITY
MANAGER ANY MATTER THAT YOU DESIRE THE CITY COUNCIL TO
CONSIDER. WE THANK YOU FOR YOUR PRESENCE AND WISH YOU TO
KNOW THAT WE APPRECIATE YOUR INVOLVEMENT.
ROLL CALL
PLEDGE OF ALLEGIANCE TO THE FLAG BY THE CITY MANAGER, TOM G.
MCCABE
INVOCATION
APPROVAL OF THE MINUTES OF THE ADJOURNED REGULAR MEETING OF
APRIL 3, 2001 AND APPROVAL OF THE MINUTES OF THE REGULAR MEETING
OF APRIL 17, 2001.
COUNCIL AGENDA
4/24/01 Page 2
INTERVIEWS/APPOINTMENTS
Housing & Community Development Committee - Reappointment
PUBLIC HEARING
1. Public Hearing to review the draft FY 2001-02 Annual Plan Document including
proposed Community Development Block Grant (CDBG) and Home Investment
Partnership Act (HOME) Program budgets and consider public comment and
testimony. (Community Development Commission)
CONSENT CALENDAR
Consent Calendar: Consent Calendar items involve matters, which are of a routine
or noncontroversial nature. All consent calendar 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.
2. WARRANT REGISTER #42 (Finance)
Ratification of Demands in the amount of $ 415,711.61 (Finance)
3. Claim for Damages: Giuseppe Di Stefano (City Clerk)
NON CONSENT RESOLUTIONS
4. Resolution No. 2001-54
Resolution of the City Council of the City of National City approving an
Interbudget Adjustment Request (IBAR) appropriating $900,000 from Sewer
Undesignated Fund Balance Account 125-2501 to Wastewater Account 125-
422-222-272, Sewer Transportation and Treatment. (Public Works)
COUNCIL AGENDA
4/24/01 Page 3
NON CONSENT RESOLUTIONS (Cont.)
5. Resolution No. 2001-55
Resolution of the City Council of the City of National City approving an
Interbudget Adjustment Request (IBAR) appropriating $295,000 from the
General Fund Undesignated Balance Account 001-2501 to Facilities Account
626-422-223-234 to pay for the increased cost of electricity and gas used by
City buildings and facilities. (Public Works)
6. Resolution No. 2001-56
Resolution of the City Council of the City of National City approving a Retainer
Agreement with the Law Firm of Lewis, D'Amato, Brisbois & Bisgaard. (City
Attorney)
7. Resolution No. 2001-57
Resolution of the City Council of the City of National City authorizing and
approving the borrowing of funds for Fiscal Year 2001-2002; the issuance and
sale of a 2001-2002 Tax and Revenue Anticipation Note therefor; and
participation in the California Communities Cash Flow Financing Program.
(Finance)
8. Resolution No. 2001-58
Resolution of the City Council of the City of National City authorizing the Mayor
to execute a Memorandum of Understanding with SK8NC. (Parks &
Recreation)
COUNCIL AGENDA
4/24/01 Page 4
ORDINANCE FOR INTRODUCTION
9. An Ordinance of the City Council of the City of National City amending Title 9,
Chapters 9.40 and 9.48 of the Municipal Code by the adoption of Title 6,
Chapters 11 and 12 of the San Diego County Code of Regulatory Ordinances
relating to "Certified Unified Program Agency, Hazardous Materials Inventory
and Response Plan" and "Medical Waste." (City Attorney)
OLD BUSINESS
10. City Council meeting times and dates. (Councilman Beauchamp)
WRITTEN COMMUNICATIONS
11. Letter from Darryl Gorham regarding sewer bills.
12. Letter from P. Sinapati Sotoa, President of the Samoan Community Council of
San Diego requesting funding for their cultural dance classes.
NEW BUSINESS
-* CITY MANAGER
---> CITY ATTORNEY
- OTHER STAFF
COUNCIL AGENDA
4/24/01 Page 5
NEW BUSINESS (Cont.)
-* MAYOR
-+ CITY COUNCIL
PUBLIC ORAL COMMUNICATIONS (Five -Minute Time Limit)
NOTE: Pursuant to State Law, items requiring Council action must be brought back
on a subsequent Council agenda unless they are of a demonstrated emergency or
urgent nature.
ADJOURNMENT
Next Regular City Council Meeting — May 1, 2001 at 3:00 p.m. - Council
Chambers, Civic Center.
TAPE RECORDINGS OF EACH CITY COUNCIL MEETING
ARE AVAILABLE FOR SALE AND TO LISTEN TO
IN THE CITY CLERK'S OFFICE
Office of the Mayor
1243 National City Blvd., National City, CA 91950 (619) 336-4526
George H. Waters - Mayor
APRIL 17, 2001
TO: COUNCILMEMBERS
FROM: MAYOR WATERS
SUBJECT: HOUSING & COMMUNITY DEVELOPMENT COMMITTEE
Please be advised that Bing Bersamina's term on the Housing &
Community Development Committee will be expiring on April 28, 2001.
If there are no objections, I recommend we reappointment Mr. Bersamina
to the Housing & Community Development Committee for a term ending
April 28, 2003. This item will be placed on the Council Agenda for the
meeting of Tuesday, April 24, 2001.
4601-4146H A E
MAYOR
GHW:nu
® Recycled Paper
CITY OF NATIONAL CITY
APPLICATION FOR APPOINTMENT TO CITY BOARDS AND COMMISSIONS
informatias PURPOSE AND INTENT: It is the purpose and intent of this form to provide the City Council with as much background
Possible on those persons willing to serve on any of the Boards and Commissions of the City of National City.
Please note: This application will be kept on file and under consideration for one (1) year from the date it is submitted.
PLEASE CHECK THE BOARD OR COMMISSION FOR WHICH YOU ARE APPLYING
(You May Apply for More than One)
Building Advisory & Appeals Board
Civil Service Commission
Senior Citizens Advisory Board
Parks & Recreation Advisory Board
Serra Library Systems Board
Street Tree & Parkway Committee
Project Area Committee
Student Commissioner
Planning Commission
Port Commission
Traffic Safety Committee
Library Board of Trustees
Sweetwater Authority
San Diego County Water Authority
Housing & Comm ity Development
Committee
qz
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any: V I1C- • CoC E c i ir✓I t t1 O C..6
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RETURN COMPLETED FORM TO: THE CITY COUNCIL OF NATIONAL CITY
1243 NATIONAL CITY BOULEVARD, NATIONAL CITY, CA 91950
City of National City, California
COUNCIL AGENDA STATEMENT
MEETING DATE April 24, 2001
AGENDA ITEM NO. 1
/ ITEM TITLE
pURIIC HFARINr1: TO REVIEW THE DRAFT FY 2001-02 ANNUAL PLAN DOCUMENT
INCLUDING PROPOSED COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT
PARTNERSHIP ACT (HOME) PROGRAM BUDGETS AND CONSIDER PUBLIC COMMENT AND TESTIMONY
PREPARED BY DEPARTMENT
EXPLANATION Paul Desrochers, Executive Director CDC
See attached explanation.
Environmental Review
Financial Statement
N/A
The City will receive $702,000 in HOME and $1,460,000 in CDBG funds from the
Department of Housing and Urban Development for FY 2001-02. Account No.
STAFF RECOMMENDATION
City Council consider public comment on the draft 2001-02 Annual Plan including proposed
CDBG and HOME program requests and continue public hearing until May 8, 2001.
BOARD / COMMISSION RECOMMENDATION
CDBG and HOME recommendations from the Housing and Community Development
Committee (HCDC) are listed in Attachments Nos. 1 and 2 of this report.
ATTACHMENTS ( Listed Below Resolution No.
1. HCDC Recommendations (CDBG). ATTACHMENT 1
2. HCDC Recommendations (HOME) ATTACHMENT 2
3. 2001-02 Annual Action Plan (DRAFT). ATTACHMENT 3
A-200 (9/80)
Explanation to
April 24, 2001 City Council Agenda. Statement
Today's public hearing will focus on review of the draft Annual Action Plan for FY 2001-02, of
the Consolidated Plan for FY 2000-2005. The Consolidated Plan, required by HUD, is a
planning document that identifies National City's overall housing and community development
needs and outlines a five-year strategic plan to address those needs.
HUD also requires that the City formulate a 2001-02 Consolidated Plan Annual Plan or "Action
Plan" to explain what activities the City will undertake during the next year to address priority
needs in terms of local objectives that will be identified in the 2000-2005 strategic plan (five-
year plan). In other words, HUD wants to know what activities of the new five-year strategic
plan will be accomplished in 2001-02.
The Five -Year Consolidated Plan (2000-05) and FY 2001-02 Action Plan have been
prepared in accordance with HUD regulations. The FY 2001-02 Action plan is currently in
draft form and has been released for a 30-day public review period from April 3, 2001 through
May 3, 2001.
Today's public hearing also affords all FY 2001-02 CDBG and HOME applicants the
opportunity to present their projects and/or programs to the City Council. Invitations were sent
to all applicants for this purpose.
Each year the City completes a process to solicit and approve programs and projects eligible
for federal funding. The Department of Housing and Urban Development (HUD) has informed
the City that $1,460,000 in Community Development Block Grant (CDBG) and $702,000 in
HOME Investment Partnership Act (HOME) funds will be available for the Consolidated Plan
program year 2001-02.
2001-02 CDBG BUDGET - PRELIMINARY
# ORGANIZATIG
HUD Funding -$1,460,000
PROGRAM
REQUESTED NS :RECOMMENDATIONS
2000-01
FUNDING NOTES
Administration & Planning
1 CDC/City
Total Administration & Planning
Public Services
2 Boys & Girls Club of NC
3 Boys & Girls Club of NC
4 Center for Community Solutions
5 Consumer Credit Counseling Srv.
6 Community Development Commission
7 N.C. Building & Safety Dept.
8 N.C. Collaborative
9 N.C. Collaborative
10 N.C. Public Library
11 N.C. Parks & Recreation Dept.
12 N.C. Parks & Recreation Dept.
13 N.C. Police Department
14 National School District
15 Neighborhood National Bank
16 Occupational Training Srv.
17 Paradise Creek Educational Park
18 South Bay Community Services
19 SW.Ctr.Asian Pacific American Law
20 Southwestern College
Total Public Services
Community/Economic Development
21 MAAC Project
22 N.C.Building & Safety Dept
23 N.C.Building & Safety Dept
24 N.C.Buliding & Safety Dept.
25 N.C.Collaborative
26 S.Cty.Economic Dev. Council
27 Related Co.of CA/Plaza Manor
Total Community Projects
City VP
28 Community Development Commission
29 N.C.Fire Department
30 N.C. Parks & Recreation Dept
31 N.C.Public Works / Engineering
32 N.C.Public Works / Engineering
33 N.C.Public Works / Engineering
34 N.C.Public Works / Engineering
35 Fire Department
Total City CIP
GRAND TOTAL
CDBG Administration & Planning
Academy of Engineering
After -School Transportation Program
Project Safehouse
Financial Stab. Workshops
Nutrition Program
Graffiti Removal (25% of Program)
Resource Center Development Specialist
Partnership Project
Library Literacy/Community Computer Srv.
Swim Program
Tiny Tots
C.O.P.S. Universal Hiring Program
Safe Streets
Neighborhood Nat'l Bank -Branch Office
Park Villa Learning Opportunity Ctr.
Teen Apprenticeship Program
N.C. Critical Hours Program
N.C.Aslan Pacific American Legal Srv.
National Youth Sports Program
Installation of an elevator
Housing Inspection Program
Code Enforcement Pilot Program
Graffiti Removal (75% of Program)
Family Resource Center Remodeling
S.Cty. Partner-Comm.Dev.& Bus. Asst
Property Rehabilkatlon/Comm.Ctr.
N.C.Blvd.Streetscape(14th-18th)
Fire Fighting Equipment
Playground Equipment
Street Widening In Las Palmas Park
2001-02 Alley Improvements Project
Installation of Ped Ramps
Installation of Misc.Concrete Improve.
New Fire Station -Section 108 Loan
$ 75,000
$ 75,000
$ 18,000
$ 15,725
$ 2,500
$ 20,000
$ 40,000
$ 13,375
$ 26,250
$ 81,900
$ 55,000
$ 21,000
$ 18,000
$ 50,000
$ 10,740
$ 73,000
$ 81,400
$ 6,000
$ 66,800
$ 140,000
$ 12,000
$ 751,690
$ 36,000
$ 31,500
$ 50,000
$ 40,125
$ 25,000
$ 41,500
$ 400,000
$ 623,125
$ 600,000
$ 49,700
$ 100,000
$ 150,000
$ 100,000
$ 100,000
$ 100,000
$ 36.300
$ 1,236,000
$ 2,655,815
$ 1,850 Administration & Planning cap is 20% or 292,000
Public Service cap is 15% or $219,000
NR NR = No Request Last Year
$ 15,000
NR
NR
$ 20,000
$ 10,000
NR
NR
$ 40,000
$ 21,000
$ 18,000
NR
NR
NR
NR
NR
$ 50,150
$ 12,500
NR
NR
$ 30,000
NR
$ 37,500
$ 25,000
NR
NR
Community / Economic Development
has no funding cap
City CIP has no funding cap
$ 600,000
$ 50,000
NR
NF NF=Not Funded Last Year
NF
$ 50,000
NF
NOTE: Contingent upon HUD approval and City
Council approval.
ATTACHMENT 1
2001 - 02 HOME BUDGET - Preliminary HUD Funding - $ 702,000
2000-01
# ORGANIZATION PROGRAM REQUESTED HCDC RECOMMENDATION FUNDING NOTES
36 Christmas in July Housing Rehabilitation $ 38,000 x ,®q�e� $ 15,000 CHDO Cap (Max 5%) = $35,100
37 CDC First Time Homebuyers Program $ 250,000 , 7 ��= $ 250,000
38 CDC HOME Administration $ 70,200 ,f x_ $ 63,300 Admin. Cap ( Max 10%) = $70,200
39 Related Co. / Plaza Manor Property Rehabilitation $ 400,000 `: ` NR NR =No Request last year
Total Home Request $ 758,200
Additional HCDC Recommendation
40 CDC Owner Occupied Housing Rehabilitation $
Total
HOME Program Requirement
41 CDC
Total
GRAND TOTAL
CHDO Set Aside $
Note: CHDO has 15% set aside
that equals $105,300 ($2,900
difference in CIJ, above)
ATTACH( 2
ATTACHMENT 3
HUD Consolidated Plan
Action Plan for Fiscal Year 2001 — 2002
May 2001
City of National City
Community Development Commission
140 East 12th Street, Suite B
National City, CA 91950
FY 2001-2002 Action Plan
TABLE OF CONTENTS
FY 2001 —2002 ACTION PLAN 1-3
HOUSING AND COMMUNITY DEVELOPMENT RESOURCES 1-3
TABLE I — PUBLIC AND PRIVATE RESOURCES AVAILABLE 1-4
I. PRIORITY NEEDS ASSESSMENT OF THE CITY OF NATIONAL CITY 1-6
PRIORITY: PRESERVATION AND MAINTENANCE OF EXISTING
HOUSING 1-6
PRIORITY: HOUSING ASSISTANCE 1-8
PRIORITY: HOUSING PRODUCTION 1-10
PRIORITY: SUPPORT SERVICES FOR THE HOMELESS AND NEAR
HOMELESS 1-11
PRIORITY: EXPAND ECONOMIC DEVELOPMENT AND EMPLOYMENT
OPPORTUNITIES 1-12
PRIORITY: IMPORVE AND PROVIDE PUBLIC AND COMMUNITY
FACILITIES, AND MAKE NECESSARY INFRASTRUCTURE
IMPROVEMENTS TO SERVE LOW AND MODERATE INCOME PERSONS 1-13
PRIORITY: PROVIDE NEEDED PUBLIC AND COMMUNITY SERVICES
FOR LOW AND MODERATE INCOME PERSONS AND THOSE WITH
SPECIAL NEEDS 1-15
II. HOMELESSNESS AND OTHER SPECIAL POPULATIONS 1-17
III. ANTI -POVERTY STRATEGY 1-18
IV. LEAD BASED PAINT HAZARDS 1-18
V. IMPEDIMENTS TO FAIR HOUSING 1-18
VI. MONITORING 1-19
VII. CONTINGENCY PLAN 1-19
VIII. HOME ASSISTED PROGRAMS 1-20
APPENDIX A: ACTIVITIES TO BE UNDERTAKEN 1-21
City of National City
2001-2002 Annual Action Plan Page 1 - 2
FY 2001-2002 Action Plan
FY 2001-2002 ACTION PLAN
The 2001 — 2002 Action Plan implements the second year of the Five -Year
Consolidated Plan. This Plan outlines the action steps that National City will take to
address community development and housing needs in the City. The Plan includes a
listing of all proposed activities that the City will undertake during Fiscal Year, July 1,
2001 through June 30, 2002 utilizing Community Development Block Grant (CDBG),
Section 108 Loan Program and HOME Investment Partnerships Act (HOME) funds.
HOUSING AND COMMUNITY DEVELOPMENT RESOURCES
National City has access to a variety of federal, state and local resources to achieve its
housing and community development priorities. Table I summarizes the major sources
of funding available to carry out housing and community development activities in
National City. Specific funding sources will be utilized based on the opportunities and
constraints of each particular project or program.
The City's goal is to leverage federal and local funds to maximize the number of
households that can be assisted. Specifically, in FY 2001/02, National City has access
to the following:
• CDBG - $1,460,000
• HOME - $702,000
• Redevelopment Tax Increment
• Redevelopment $5,130,279
• Low and Moderate Income Housing Redevelopment - $1,282,569
• Section 8 Rental Assistance - $5.4 million
City of National City
2001-2002 Annual Action Plan
Page 1 - 3
FY 2001-2002 Action Plan
TABLE I
Public and Private Resources Available for
Housing and Community Development Activities
Program Name
Description
Eligible Activities
la. Federal Programs - Formula/Entitlement
HOME
Flexible grant program awarded to the
City as part of a county consortium on
a formula basis for housing activities.
• New Construction
• Acquisition
• Rehabilitation
• Home Buyer Assistance
Rental Assistance
Community Development
Block Grant
Grants awarded to the City on a
formula basis for housing and
community development activities.
• Acquisition
• Rehabilitation
• Home Buyer Assistance
• Economic Development
• Homeless Assistance
Public Services
lb. Federal Programs - Competitive
Supportive HousingGrant
PP
(SuperNOFA)
Grants to improve quality of existing
shelters and transitional housing;
increase shelters and transitional
housing facilities for the homeless.
• Homeless Assistance (Acquisition,
New Construction, Rehabilitation,
Conversion, Support Services)
Section 8
Rental Assistance
Program
Rental assistance payments to owners
of private market rate units on behalf
of'very low-income tenants
(administered by the County).
• Rental Assistance
Section 202
Grants to non-profit developers of
supportive housing for the elderly.
• Acquisition
• Rehabilitation
• New Construction
• Rental Assistance
• Support Services
Section 811
Grants to non-profit developers of
supportive housing for persons with
disabilities, including group homes,
independent living facilities and
intermediate care facilities.
• Acquisition
• Rehabilitation
• New Construction
• Rental Assistance
Section 108 Loan
Provides loan guarantee to CDBG
entitlement jurisdictions for pursuing
large capital improvement or other
projects. The jurisdiction must pledge
its future CDBG allocations for
repayment of the loan. Maximum loan
amount can be up to five times the
entitlement jurisdiction's most recently
approved allocation. Maximum loan
term is 20 years.
• Acquisition
Rehabilitation Home Buyer
Assistance
• Economic Development
• Homeless Assistance
• Public Services
2. State Programs
Emergency Shelter Program
Grants awarded to non-profit
organizations for shelter support
services.
• Support Services
Mobile Home Park
Conversion Program
(M Prop).
Funds awarded to mobile home park
tenant organizations to convert
mobile -home parks to resident
ownership.
•Acquisition
• Rehabilitation
California Housing Finance
Agency (CHFA) Multiple
Rental Housing Programs.
Below market rate financing offered to
builders and developers of multiple-
family and elderly rental housing.
Tax-exempt bonds provide below-
market mortgage money.
• New Construction
• Rehabilitation
• Acquisition of Properties from 20 to
150 units
City of National City
2001-2002 Annual. Action Plan
Page 1 - 4
FY 2001-2002 Action Plan
TABLE I
Public and Private Resources Available for
Housing and Community Development Activities (Continued)
MortgageCredit Certificate
Program
Income tax credits available to first-
time homebuyers for the purchase of
new or existing single-family housing.
Local agencies (County) make
certificates available.
•
• Home Buyer Assistance
Low Income Housing Tax
Credit (LIHTC)
Tax credits available to individuals and
corporations that invest in low-income
rental housing. Tax credits sold to
corporations and people with high tax
liability, and proceeds are used to
create housing.
Construction
• New• Ne
• Acquisition
California Housing
Rehabilitation Program -
Owner Component (CHRP-
0)
Low interest loans for the rehabilitation
of substandard homes owned and
occupied by lower -income
households. City and non -profits
sponsor housing rehabilitation
projects.
. Rehabilitation
• Repair of Code Violations,
Accessibility Improvements, Room
Additions, General Property
Improvements
3. Local Programs
National City Community
Development Commission.
20 percent of Agency funds are set
aside for affordable housingactivities
governed by state law.
• Acquisition
•• Rehabilitation
• New Construction
4. Private Resources/Financing Programs
Federal National Mortgage
Association (Fannie Mae
Loan applicants apply to participating
lenders for the following programs:
a. Community Home Buyers
Program
Fixed rate mortgages issued by
private mortgage insurers.
• Home Buyer Assistance
b. Community Home
Mortgage Improvement
Mortgages, which fund the purchase
and rehabilitation of a home.
• Home Buyer Assistance
• Rehabilitation
c. Fannie Neighbors
Low Down -Payment Mortgages for
Single -Family Homes in
underserved low-income and
minority communities.
• Home Buyer Assistance
Savings Association
Mortgage Company Inc.
(SAMCO)
Pooling process to fund loans for
affordable ownership and rental
housing projects. Non-profit and for
profit developers contact member
institutions.
• New Construction of single family
and multiple family rentals,
cooperatives, self help housing,
homeless shelters, and group
homes for the disabled.
California Community
Reinvestment Corporation
(CCRC)
Non-profit mortgage banking
consortium designed to provide long-
term debt financing for affordable
multi -family rental housing. Non-profit
and for profit developers contact
member banks.
• New Construction
• Rehabilitation
• Acquisition
Federal Home Loan Bank
Affordable Housing Program
Direct Subsidies to non-profit and for -
profit developers and public agencies
for affordable low-income ownership
and rental projects.
• New Construction
Source: Cotton/Beland/Associates, Inc., 2000.
City of National City
2001-2002 Annual Action Plan
Page 1 - 5
FY 2001-2002 Action Plan
I. PRIORITY NEEDS ASSESSMENT OF THE CITY OF NATIONAL CITY:
2001 — 2002 ANNUAL ACTION PLAN
Strategic Plan Priorities
This section is outlined in the following manner: First, "Priority" housing and community
development needs are identified as they are outlined in the City's 2000 - 2005
Consolidated Plan. Second, the 5-Year objectives that support the "Priority" are
identified. Third, Action Steps for FY 2001 —2002, that directly relates to achieving the
5-year objectives are identified. In order to gage progress on the City's 2000 — 2005
Consolidated Plan, accomplishments for FY 2000 — 2001 are described. APPENDIX A,
outlines the agencies/programs and their projects for which they have requested CDBG
and HOME Program funds for FY 2001 - 2002. Each project meets the HUD's national
objectives. Final funding allocations to the programs/projects will occur on May 1, 2001.
PRIORITY: PRESERVATION AND MAINTENANCE OF EXISTING HOUSING
Supporting Rationale: Given the City's aging housing supply, conservation of the
housing stock is necessary to avoid a degree of physical decline that would require
larger rehabilitation efforts in the future to restore quality and value. It is also important
to preserve the affordable housing units in the City to maintain adequate housing
opportunities for all residents.
FIVE - YEAR OBJECTIVES:
• Provide rehabilitation assistance to 200 owner households of lower and
moderate income.
• Provide assistance to rehabilitate 50 rental units.
• Support the rehabilitation/repair of 75 houses.
• Pursue 100 percent enforcement of Property Conservation and
Community Appearance Code and on -site management requirements
for apartment complexes of nine or more units.
PROPOSED FY 2001/2002 ACTIVITIES:
1. Home Improvements Loan Program: The CDC provides two home improvement
loan programs to owner households; one loan program for low-income households at a
3.0 percent interest rate and one loan program for moderate income families at a 6.0
percent interest rate, both at a maximum loan amount of $25,000. In addition, there is a
Deferred Loan Program of up to $4,500 at 3.0 percent interest where the loan is
deferred until the end of the mortgage or when the property is sold. The programs are
City of National City
2001-2002 Annual Action Plan Page 1 - 6
FY 2001-2002 Action Plan
made possible through Redevelopment Set -Aside funds with a total amount of
$400,000. It is projected that 35 households will benefit from the program in FY 2001 —
2002.
2. Rental Unit Rehabilitation Program: The CDC offers favorable rehabilitation loans
(usually at 6.0 percent interest for a 15-year term) for rental owners to make necessary
improvements. The proposed funding source is Redevelopment Set -Aside funds in the
amount of $100,000. It is projected that 5 households will benefit from this program
throughout the fiscal year.
3. Mobile Home Rehabilitation Program: Included in the Redevelopment Set -Aside
funds (total amount of $400,000), there is an opportunity provided to Mobile Home
Owners, in the form of a loan to undergo rehabilitation. The maximum amount of the
loan program is $7,500, with a ten-year repayment schedule at 3.0 percent interest.
Currently, it is not known how many Mobile Home owners will benefit from the program,
as there is a small population of mobile homes in National City.
3. Community Housing Development Organizations/"Christmas in July"
Volunteer Program: The. CDC helps sponsor the non-profit volunteer program each
year through HOME funds to assist senior citizen households, individuals who have a
developmental and/or physical disabilities. This program assists the lower income
households in making necessary repairs to their homes. The "Christmas in July"
Volunteer Program has requested CDBG funds in the amount of $38,000. It is
projected that this program will assist 15 to 20 National City Homes, rehabilitate 2 to 4
non-profit buildings or public areas and conduct year round home repairs, as requested
by National City residents.
4. Housing Inspection Program: A pilot program will be implemented during
the FY 2001, conducted under National City's Building and Safety Department to
reduce blight conditions and improve the quality of life for renters by ensuring
that single family and duplex rental dwelling units are in compliance with the
State Housing Law. The program projects to serve 3,600 households within
National City and is requesting $31,500.
ACTIVITIES COMPLETED IN 2000 — 2001
During the FY 2000 — 2001, 35 homeowners utilized the HOME Improvement Loan and
35 apartment complexes assisted through the Rental Unit Rehabilitation program. The
Christmas in July program assisted 15 low-income households through rehabilitation of
their homes and 6 concrete handicap ramps were constructed for households.
PRIORITY: HOUSING ASSISTANCE
City of National City
2001-2002 Annual Action Plan
Page 1 - 7
FY 2001-2002 Action Plan
Supporting Rationale: In order to maintain a diverse and fiscally sound community, it
is important to provide a variety of residential opportunities and assist renters and
owners that are overpaying for housing.
FIVE-YEAR OBJECTIVES:
• Conserve 614 units at -risk of losing affordability controls.
• Retain 990 project based Section 8 units.
• Assist 1,044 households with tenant based Section 8 assistance
• Provide assistance to 150 households under the First -Time
Homebuyers Assistance Program.
• Assist 50 households with Mortgage Credit Certificate Program.
PROPOSED FY 2001/2002 ACTIVITIES:
1. Conservation of Affordable Units at Risk of Converting to Market Rate: A total
of 614 units in the Granger Apartments, Inter City Manor and Plaza Manor are deed -
restricted to remain as affordable housing and maintain Section 8 contracts with HUD.
Potential phasing out of the Section 8 project based program may trigger the conversion
of 232 units at Granger Apartments and Inter City Manor into market rate housing. The
property owners may also prepay their remaining HUD -insured loans and terminate
their deed restrictions as low-income housing. The CDC will monitor at -risk units and
work with potential purchasers to prevent these Apartments from being phased out of
the Section 8 project based housing. The goal is to continue to work with the 232 units
at risk of converting to market rate, which is a HUD sponsored program.
The Related Companies of California and their non-profit housing provider Las Palmas
Foundation purchased Plaza Manor, which is a 372 unit complex, in the winter of 2001,
with the intent of maintaining the complexes affordability to low-income families and
senior citizens. The CDC is working with The Related Companies in order to provide
support as well as HOME funds to complete necessary property rehabilitation and the
construction of a senior center. In addition, the property owners will collaborate with the
National City Family Resource Center to provide on -site social programs. The Related
Companies and Las Palmas Foundation, is requesting $400,000, of CDBG and HOME
funds to assist in the rehabilitation of the property.
2. Section 8 Rental Assistance Program: The Section 8 rental assistance
program extends rental subsidies to very low-income families and persons that spend
more than 30 percent of their income on rent. The subsidy represents the difference
between the excess of 30 percent of the monthly income and the actual rent. The
CDC provides the Section 8 voucher and certificate program, which is being
converted to the "New Housing Choice Voucher program" as voucher and certificate
contracts end. HUD has implemented this new program making Section 8
participants responsible for paying at least 30 percent of their adjusted income
City of National City
2001-2002 Annual Action Plan Page 1 - 8
FY 2001-2002 Action Plan
toward rental payments. This year's objective is to continue to assist 1,044
households with tenant based Section 8 assistance through HUD's assistance with
approximately $5.4 million dollars.
3. First -Time Homebuyers Assistance Program: This program provides financial
assistance through loans and/or grants to help buyers with down payments, closing
costs, mortgage insurance premiums, and a silent second trust deed loan program.
Under the silent second program, the loan amount is "silent", meaning that there are no
payments on the second mortgage until the loan comes due. The silent second can
provide a loan of 15 percent of the purchase price, up to $15,000 depending on
household income. Requiring payment of the loan when the home is sold, transferred,
or refinanced, or at the end of 30 years ensures continued affordability. HOME funds
will be used for low-income households (80 percent or less than the County median)
and Redevelopment Set -Aside funds will be used for moderate -income households (80
to 120 percent of the County median). The proposed funding for this program is
$250,000 from HOME funds, and $200,000 form Redevelopment Set -Aside funds and it
is projected that 25 households will be assisted.
4. Mortgage Credit Certificate (MCC) Program: The Mortgage Credit Certificate
Program will continue to be available to residents of National City. This program
provides first time homebuyers with a direct credit toward federal income tax that can
increase the homebuyers purchasing power due to a reduced federal income tax
burden. Availability of the certificates locally requires obtaining allocations from the
State Mortgage Bond Allocation Committee, which is in turn limited by federal law in the
amount if MCC's and bonds that it may allocate. As this is a City run program it cannot
be projected the amount of funds allocated or families assisted in National City.
ACTIVITIES COMPLETED IN 2000 - 2001
The CDC began communications with the Related Companies of CA and their non-profit
housing provider in order to support and potentially provide financial assistance for the
rehabilitation of the property and the addition of a senior community center. This is in
support of the Company purchasing the rental property with the intent to continue
providing HUD's Section 8 housing to seniors and families who are low-income. The
CDC continued to provide 1,044 families with tenant based Section 8 rental assistance.
25 households were assisted with the First Time Homebuyers Program.
PRIORITY: HOUSING PRODUCTION
Supporting Rationale: The San Diego region is anticipated to continue experiencing
substantial economic and population growth. It is important that the City of National City
City of National City
2001-2002 Annual Action Plan
Page 1 - 9
FY 2001-2002 Action Plan
help to provide new housing opportunities for all income levels to provide a balanced
community.
FIVE-YEAR OBJECTIVES:
• Acquire, rehabilitate and/or construct 225 affordable housing units.
PROPOSED FY 2001/2002 ACTIVITIES:
1. Acquisition of Affordable Housing: An emphasis of this program is to provide
affordable homeownership opportunities for lower and moderate -income households in
the City through the First Time Homebuyers Program.
2. Rehabilitation of Affordable Housing:
• The CDC will work with The Related companies by assisting them with HOME funds
in the rehabilitation of the 372 units at Plaza Manor.
• The CDC will support Christmas in July through HOME funds to continue to provide
housing rehabilitation to senior, individuals who have a disability and households
that are low-income. This organization projects to assist 15 to 20 households.
• The CDC sponsors two Rental Rehabilitation Loan programs and a Mobile Home
rehabilitation program and projects to serve 5 households.
3. Construction of Affordable Housing Units: The CDC is involved with the
following projects that are funded through Redevelopment Set -Aside funds.
• 16th and Euclid: Two affordable single-family homes are being constructed.
• Clairmont Avenue: Two affordable single-family homes are being constructed.
• Fig Court and Sheryl Lane: The CDC is working with Habitat for Humanities to
conduct feasibility studies at Fig Court to construct single-family homes. And to
construct three single-family homes at Sheryl Lane.
• 9th and A Project: Six live work housing are being constructed for which two of the
six housing units will be reserved for low-income households.
ACTIVITIES COMPLETED IN 2000 - 2001
The CDC began communications with the new owners, The Related Companies of
California and their non-profit housing provider Las Palmas, in order to provide potential
financial assistance through HOME funds for the rehabilitation of the 372 unit apartment
complex. The CDC assisted the nonprofit housing provider, Southern California
City of National City
2001-2002 Annual Action Plan Page 1 - 10
FY 2001-2002 Action Plan
Housing Development Corporation, with HOME funds, Bonds and Redevelopment Set
Aside funds to rehabilitate the 132 units of apartment housing on Q Avenue. Included in
the rehabilitation at Q Avenue, funds provided by the CDC assisted with the
development of a community center, playgrounds and a pool. Through the First Time
Homebuyers program, 25 households were assisted. The Rental Rehabilitation Loan
Program assisted 30 owners of rental properties.
PRIORITY: SUPPORT SERVICES FOR THE HOMELESS AND NEAR
HOMELESS
Supporting Rationale: While both the census and the Regional Task Force on the
Homeless indicate that there is only a small homeless population in National City, the
City recognizes that extremely low-income households are at -risk of becoming
homeless. Homelessfamilies and individuals generally need services and facilities
including emergency shelter, transitional housing, and supportive services to reintegrate
them with their families or enable them to live independently.
FIVE-YEAR OBJECTIVES:
• Contribute all received FEMA funds to the County's FEMA Homeless
Program.
• Amend the zoning ordinance to allow emergency shelters and
transitional housing.
• Provide and improve services at the Community Food Bank of National
City and other local service providers.
• Evaluate the needs of homeless persons and provide and improve
services related to the homeless population and those at -risk of
becoming homeless.
PROPOSED FY 2001/2002 ACTIVITIES:
1.Contribute a proposed amount of CDBG funds set by the County's FEMA
Homeless Program: In January, the County's FEMA Homeless Program determines a
proportionate amount of funding from each City in order to provide shelter for our
counties homeless population. The goal is to continue to contribute CDBG funds in
order to assist the homeless population in National City.
2. Continue to evaluate the needs of homeless persons and provide and improve
services related to the homeless population and those at -risk of becoming
homeless: Work in a coordinated effort with public service agencies who provide
services to the homeless in National City, South Bay Community Services, Community
Food Bank of National City and the National City Collaborative in order to identify the
City of National City
2001-2002 Annual Action Plan
Page 1 - 11
FY 2001-2002 Action Plan
population of Homeless in National City and to identify needs in order to address those
needs.
3. Continue dialogue with National City Planning Department to explore options
for amending the zoning ordinances for transitional housing as well as
emergency shelters:. Currently, zoning ordinances for both transitional housing and
emergency shelter are ambiguous. The CDC will work in a coordinated effort with
National City Planning Department and the City Council to clarify zoning ordinances and
determine what will be feasible guidelines to allow this to occur.
ACTIVITIES COMPLETED IN 2000 - 2001
CDBG funds in the amount of $8,420 were contributed to the County's FEMA Homeless
Program. These funds assist the county to provide shelter for the homeless and for
those who are located in National City. Initial dialogue began with the Planning
Department to amend the Land Use Code in order toprovide transitional housing and or
shelter has begun. Currently, there is a conditional use permit, which has allowed the
acquisition, and rehabilitation of 9 units of transitional housing, called Victorian Heights,
that will provide aid to families of domestic violence.
PRIORITY: EXPAND ECONOMIC DEVELOPMENT AND EMPLOYMENT
OPPORTUNITIES
Supporting Rationale: National City works actively with the business community to
maintain a strong economic base. The following programs are intended to address the
needs of the business community while creating employment opportunities for persons
living in National City.
FIVE-YEAR OBJECTIVES:
• Assist in the replacement and construction of infrastructure in
commercial and industrial areas.
• Consider pursuing Section 108 loans to expand economic development
activities.
PROPOSED FY 2001/2002 ACTIVITIES:
1. Commercial/Industrial Infrastructure Development: The City will provide
assistance in low and moderate -income areas for the infrastructure development and
City of National City
2001-2002. Annual Action Plan Page 1 - 12
FY 2001-2002 Action Plan
improvements.
2. National City Higher Education Village: The City will assist in the expansion of
the National City Higher Education Village, which will provide academic programs and
employment training opportunities for residents.
3. MAAC Project: The MAAC Project, a multi -purpose social service agency is
requesting CDBG funds for FY 2001 —2002, in the amount of $35,000 to construct an
elevator in their office located in National City. This project will bring the office building
up to ADA standards as well as provide access to a larger number of National City
residents to include those who have a physical disability.
4. South County Economic Development Council (SCEDC): The SEDC has
submitted a proposal for FY 2001 — 2002, for CDBG funds in the amount of $41,500.
The proposed project will assist the National City Community in three areas; $10,000
set -aside for creating a small business development fund to provide low interest loans
to start-up and existing small business expansions; $10,000 set -aside for creating an
employer assisted housing fund to provide matching funds in the form of a loan to
employees of participating corporate partners to provide needed down payments for the
purchase of a home; and $10,000 to creating a child care/charter school facilities fund
to assist different groups interested in creating a new or expanded child care facility or
employee development trainings or in the form of a loan for construction of a charter
school. The funds for the first year of the program will be utilized specifically for low
income business owners in National City and it cannot be projected how many business
owners will benefit from this program at this time.
ACTIVITIES COMPLETED IN 2000 — 2001
The CDC continued to work on the National City Higher Education Village through the
acquisition of land and construction of the education facility. Southwestern College,
San Diego State University and the University of California extension studies programs
will be offered on site. In addition, the San Diego County Office of Education will be
utilizing office space at the Education Village. National City Boulevard and the Mile of
Cars streetscaping was completed and National City Boulevard between 14th and 18th
Street rehabilitation began in order to continue the downtown redevelopment.
PRIORITY: IMPROVE AND PROVIDE PUBLIC AND COMMUNITY
FACILITIES, AND MAKE NECESSARY INFRASTRUCTURE IMPROVEMENTS
TO SERVE LOW AND MODERATE INCOME PERSONS.
Supporting Rationale: The provision of a suitable living environment is a goal of the
CDBG program. Adequate community facilities and infrastructure must be available to
serve all residents of the City, including those of low and moderate income.
City of National City
2001-2002 Annual Action Plan
Page 1 - 13
FY 2001-2002 Action Plan
FIVE-YEAR OBJECTIVES:
• Complete and implement a yearly Capital Improvement Plan to address
infrastructure, ADA improvements and parks and recreational facility
needs and funding.
• Identify and prioritize community facility projects for funding.
PROPOSED FY 2001/2002 ACTIVITIES:
1. Capital Improvement Plan: The city will implement a variety of improvements
including the following:
• Alley Improvements Project
• Fire fighting equipment
• Installation of Pedestrian ramps
• NC Boulevard Streetscape (14th —18th)
• Miscellaneous concrete improvements
• Playground equipment
• Street widening in Las Palmas Park
2. Community Facility Projects: The City is projected to assist in the construction or
make improvements to the following public facilities through CDBG funding:
• Graffiti Removal on public facilities
• Family Resource Center remodeling
• MAAC Project — installation of elevator for ADA Compliance
• Addition of one police officer assigned to National School District
• Building of a New Fire Station — through Section 108 Loan
ACTIVITIES COMPLETED IN 2000 - 2001
During FY 2000 — 2002, Civic Center Drive/NC Boulevard Streetscape was completed
with ornamental lighting, re -pavement of the road and sidewalks. Throughout National
City pedestrian ramps were installed to meet ADA compliance. The Fire Department
purchased fire equipment in order to continue to provide National City residents with
efficient services. The graffiti removal program made 6,300 service calls to remove
graffiti from public and private facilities. The National City Police Department in
conjunction with the CDC and City Council began discussions and completed
application process for the Section 108 Loan that was submitted to HUD requesting
City of National City
2001-2002 Annual. Action Plan Page 1 - 14
FY 2001-2002 Action Plan
funds for the new construction and expansion of a fire station at its current location.
The construction of the new fire station would allow the Fire Department to expand its
services to National City residents.
PRIORITY: PROVIDE NEEDED PUBLIC AND COMMUNITY SERVICES FOR
LOW AND MODERATE INCOME PERSONS AND THOSE WITH SPECIAL
NEEDS
Supporting Rationale: Public assistance is typically required to deliver community and
supportive services for low and moderate -income households and persons with special
needs. These populations tend to have less income at their disposal, may be unaware
of services responding to their special circumstances, and may have difficulty with
enrollment or eligibility procedures.
National City will continue its efforts to fund public service programs offered by the City
and other non-profit public service organizations to meet the social service needs of low
and moderate income families and individuals. Those served by these programs
include abused children, elderly, youth (particularly at -risk youth), battered spouses, and
disabled persons.
FIVE-YEAR OBJECTIVES:
• Continue to implement actions to address fair housing issues through
the CDBG and HOME- funded activities.
• Continue to ensure open, fair housing practices and sufficient resources
are made available to assure informed housing consumers and
suppliers. Annually evaluate the services provided by the fair housing
counseling and enforcement organizations to ensure adequate and
appropriate services are provided, and revise contracts as appropriate.
• In new projects with 10 units or more, the CDC and FHCSD will
encourage the training of staff in Fair Housing administration.
• Evaluate the potential use of CDBG funds to provide and improve
services and facilities for youth in National City.
• Evaluate the potential use of CDBG funds to provide and improve
community and special needs services.
• Continue to implement the housing and Community development
programs and comply with all planning and reporting requirements of
CDBG and HOME regulations.
• Review the implementation of the Consolidated Plan programs and
objectives and update the Action Plan annually.
City of National City
2001-2002 Annual Action Plan Page 1 - 15
FY 2001-2002 Action Plan
PROPOSED FY 2001/2002 ACTIVITIES:
1. Boys and Girls Club of National City After School Transportation Program:
The City will support the Boys and Girls Club of National City by providing bus service to
the Club. Activities available include computer time, educational games, reading,
spelling bees and math flash card contest. The projected total youth served by the
Transportation program is 27,935.
2. CDC Nutrition Program: This program helps frail and low-income elderly residents
to maintain independent living through the provision of nutritious meals, social
interaction and daily contact. Services include a Home Delivered Meal Program and a
congregate site. The total number of seniors projected to be served in the upcoming
fiscal year is 1,500.
4. National City Building and Safety Department Graffiti Removal Program: The
Building and Safety Department has a full-time employee dedicated to removing graffiti
on public and private property in low and moderate -income portions of the City. This
program aids in the reduction of blight throughout National City and projects to make
6300 service calls to remove graffiti.
4. National City Parks and Recreation Department Swim Program: The Parks and
Recreation Department swim program provides opportunities for National City residents,
ages 4 to adults, including swim lessons at the community pool located at Las Palmas
Park. It is projected that 750 National City residents will benefit from the swim programs
in FY 2001 — 2002.
5. National City Parks and Recreation Department Tiny Tots Program: National
City supports the Tiny Tots program held at El Toyon Recreation Center.
6. National City Public Library Literacy Services: National City supports the library
Literacy Services program. The Library Literacy Service Program offers the following:
a) an Individual English Language Adult Tutoring Program; b) a Community Computer
Center; and c) a Family Literacy Program (PATerns) which develops lifelong learning
skills in families with preschool children.
7. National City Critical Hours Program: This program includes collaboration with
the South Bay Community Services organization whose mission is to reinforce the
family's role in the community. This is addressed through services and activities that
include counseling, after -school programs, a continuum of shelter options for youth and
families, drug and alcohol abuse recovery programs, and family violence prevention.
8. Center for Asian Pacific American Law: to help provide legal services to low and
moderate -income residents of National City.
City of National City
2001-2002 Annual Action Plan Page 1 - 16
FY 2001-2002 Action Plan
ACTIVITIES COMPLETED IN 2000 — 2001
The Boys and Girls Clubs of National City's After School Transportation Program
provided a total of 17,796 rides for youth from the National School District to the Boys
and Girls Club of National City. The CDC's Senior Nutrition Program served a total of
1,50 seniors. The Graffiti removal program provides outreach by posting a Graffiti
removal hotline in newsletters that are distributed to public agencies. The Building and
Safety Department made 6,300 service calls to remove graffiti from public and private
facilities. The National City Swim program served a total of 750 residents, ages ranging
from 4 to adults.
II. HOMELESSNESS AND OTHER SPECIAL POPULATIONS
The Regional Task Force on the Homeless produced a report on August 1999 stating
that there are approximately 100 homeless individuals in National City. The City of
National City follows a comprehensive strategy to address homelessness. This strategy
is comprised of activities to address the following three priorities:
• Emergency and Transitional Housing
• Persons at Risk of Becoming Homeless
• Persons in Transition from Homelessness to Permanent Housing
HOMELESS PREVENTION
Non-profit and public service providers help mitigate homelessness by serving both the
homeless and at -risk populations. The following programs help to prevent
homelessness:
• National City Nutrition Program
• National City Critical Hours Program
• Fair Housing Council of San Diego
• Southwestern Center for Asian Pacific American Law
EMERGENCY SHELTER/TRANSITIONAL HOUSING
• Amendment of Land Use Code to Identify Sites Where Emergency Shelters and
Transitional Housing can be Located — Program 1 under Support Services for
Homeless and Near Homeless
• Shelter Opportunities through Critical Hours Program — Program 7 under Community
Service Priority.
• CDBG Contribution of funds in the amount of $8,420 (3.86% of total CDBG funding)
to the County of San Diego's Cold Weather Shelter Voucher Program.
• CDC contribution of $236,914 with HOME Funds and potential $25,000 of matching
funds in FY 2001 -2002 towards rehabilitation of Transitional Housing for woman
and children. Victorian Heights is a nine unit apartment complex.
City of National City
2001-2002 Annual Action Plan
Page 1 - 17
FY 2001-2002 Action Plan
PERMANENT HOUSING
• Section 8 Rental Assistance —Tenant Based and Project Based — Programs 2 under
Housing Assistance Priority.
III. ANTI -POVERTY STRATEGY
The City will address poverty issues through economic development and job training
programs. The following programs will be supported:
• Cal WORKS
• GAIN Remediation: Adult Deliverers (G.R.A.D. Consortium)
• National City Redevelopment Project
• National City Chamber of Commerce Economic Development Committee
• Regional Occupational Program
• San Diego Workforce Partnership
• National City Higher Education Center
• Education Village —.NC Boulevard
• Public Housing apartment rental complexes providing social programs to assist
low to moderate income families in computer training, health issues and
providing linkages to job training programs.
IV. LEAD BASED PAINT HAZARDS
The CDC is working in a coordinated effort with the Metropolitan Area Advisory
Committee (MAAC) and the Environmental Health Coalition by providing $6,000; from
Low -Moderate Funds to provide training to the MAAC Project staff regarding the
protection and/or removal of lead based paint. The training is provided to the MAAC
Staff in a coordinated effort to assist households who will be utilizing Home and Rental
Property Improvement Loans.
V. IMPEDIMENTS TO FAIR HOUSING
In the Regional Analysis of Impediments to Fair Housing Choice in the San Diego Area,
produced by the Fair Housing Council of San Diego, October 2000, identifies 7 Action
Steps to further fair housing services (p. 84). The CDC will continue to address and
provide services for Action Step 7. They are as follows:
1. Diverse fair housing public outreach and education programs for housing
consumers.
2. Educational and technical training assistance for housing industry professionals.
3. Discrimination complaint intake services which provide for intake, investigation,
conciliation and enforcement referrals for bona fide complaints.
City of National City
2001-2002 Annual Action Plan Page 1 - 18
FY 2001-2002 Action Plan
4. To conduct periodic audits to measure the levels of fair housing compliance
within the rental, sales, property insurance and mortgage lending marketplaces in
the jurisdiction.
5. The particular "protected class groups" which are most affected, as shown by
local audits or records, by any non-compliance with fair housing laws should be
documented. Fair housing records should be maintained.
6. Fair housing laws change as they are interpreted by judges or as new laws and
regulations are enacted. Therefore, all persons who are in a decision -making
capacity or who interact or have responsibilities where fair housing issues are
concerned should receive basic fair housing training and periodic updates.
The CDC will contract with The Fair Housing Council of San Diego for the first 6 Action
Steps.
7. All Staff that are involved in programs, projects and plans, that have relevance or
lend support to the achievement of fair housing goals will continue to participate
in the following activities as it pertains to their positions:
• Preservation and maintenance of existing housing;
• Home Improvement Loan Programs;
• Conservation of affordable units at risk of converting to market rate;
• First Time Homebuyer Assistance Program;
• Acquisition, rehabilitation and new construction of affordable housing.
• Attendance at Fair Housing Resource Board Meetings.
VI. MONITORING
Careful evaluation of the housing and public service delivery system can be the most
effective tool in detecting gaps and making appropriate modifications. National City will
implement a monitoring plan for sub -grantees using the HUD suggested format. This
includes in-house review of progress reports and expenditures and on -site visits of sub -
recipients to ensure compliance with federal regulations. The monitoring system
encourages uniform reporting on a quarterly basis to achieve consistent information on
beneficiaries. Technical assistance will be provided where necessary.
Project and financial data on CDBG-funded activities is maintained using the HUD
software -- Integrated Disbursement Information System (IDIS). Use of this system will
allow HUD staff easy access to local data for review and progress evaluation. The IDIS
will be updated quarterly, in order to gage progress on the Annual Plan and to make
changes or revisions as necessary.
VII. CONTINGENCY PLAN
Not applicable to this fiscal year.
City of National City
2001-2002 Annual Action Plan
Page 1 - 19
FY 2001-2002 Action Plan
VIII. HOME ASSISTED PROGRAMS
RESALE PROVISIONS FOR HOME OWNERSHIP ACTIVITIES
• The guidelines for resale/recapture that ensures the affordability of units acquired
with home funds will be enforced by the CDC Staff that oversea HOME funded
programs by ensuring the appropriate documentation referring to this is in the
Contract Agreement between the CDC and sub -recipients.
OTHER FORMS OF INVESTMENT
•Not applicable at this time.
MINORITY/WOMEN'S BUSINESS OUTREACH
• The CDC will encourage sub -recipients to contract with minority/women owned
businesses that will include increased outreach efforts. These outreach efforts
will include public or private construction firms, appraisal firms, management
firms, financial institutions, investment banking firms, underwriters,
accountants & providers of legal services.
City of National City
2001-2002 Annual Action Plan Page 1 - 20
FY 2001-2002 Action Plan
APPENNDIX A:
ACTIVITIES TO BE UNDERTAKEN
On May 1, 2001, the City Council will hold a public meeting and decide which proposed
programs, identified in Table II, will be included in the Final Action Plan to receive
CDBG and HOME funds during FY 2001/2002. Once, the City Council makes the final
decision on the allocation of funds, detailed information on each of the proposed
projects will be identified in Appendix A of this Consolidated Plan.
Table II
2001 - 2002 Proposed Project Requests
Program Name
Program Type
Funding Amount
Requested
Housing Programs
Acquisition/First Time Homebuyer
Single Family Unit Acquisition and
Rehabilitation
$250,000
Affordable Housing
15% CHDO Set Aside
$105,300
CHDO Operation/Christmas in July
Single -Family Unit Rehabilitation
$38,000
Related Company/Plaza Manor "
Property Rehabilitation
$400,000
Public Services Programs
Boys & Girls Club of NC
Youth Center
$18,000
Boys & Girls Club of NC
Youth Center
$15,725
Center for Community Solutions
Battered and Abused Spouses
$2,500
Consumer Credit Counseling
Public Service
$20,000
Nutrition Center
Senior Services
$40,000
Graffiti Removal Program (25% of
program)
General Services
$13,375
NC Collaborative
Additional Staffing
$26,250
NC Collaborative
General Services
$81,900
NC Public Library -Literacy Services
Public Services
$55,000
Parks & Rec. Dept. -Swim Program
Youth Services
$21,000
Parks & Rec. Dept. -Tiny Tots
Youth Services
$18,000
NC Police Department
Public Service
$50,000
National School District, Safe Streets
Youth Services
$10,740
Neighborhood National Bank
Public Services
$73,000
Occupational Training Services
Public Services
$81,400
Paradise Creek Educational Park
Youth Services
$6,000
South Bay Community Services
Public Services
$66,800
SW Ctr. Asian Pacific American Law
Legal Services
$140,000
Southwestern College
Youth Services
$12,000
Community Development Programs
MAAC Project
Public Facility Improvement
$35,000
NC Building & Safety Dept. -Housing
Inspection
General Services
$31,500
City of National City
2001-2002 Annual Action Plan
Page 1 - 21
FY 2001-2002 Action Plan
Table II
2001 — 2002 Proposed Project Requests (Continued)
NC Building & Safety Dept. -Code
Enforcement Pilot Program
General Services
$50,000
Program Name
Program Type
Funding Amount
Requested
NC Building & Safety Dept. -Graffiti
Removal (75% of program)
General Services
$40,125
NC Collaborative
Public Facility Improvements
$25,000
S. Cty. Economic Development Council
Business Assistance
$41,500
Related Companies -Plaza Manor
Property Rehabilitation
Capital Improvements Projects
CDC -NC Boulevard Streetscape (14th-
18th)
Street Improvements
$600,000
NC Fire Department
Fire Fighting Equipment
$49,700
NC Parks & Recreation — Playground
Equipment
Public Facilities & Improvements
$100,000
NC Public Works/Engineering
Street Improvements
$150,000
NC Public Works/Engineering-Alley
Improvements
Street Improvements
$100,000
NC Public Works/Engineering
Sidewalks
$100,000
NC Public Works/Engineering
Street & Sidewalk Improvements
$100,000
* San Diego County -Shelter Program
Homeless facilities
$8,420
Section 108 Loan
Fire Department- Construction of Fire
Department
Construction of Public Facility
$600,000
Administration and Planning
CDBG Administration
Program Administration and Planning
$75,000
HOME Administration
Program Administration and Planning
$70,200
* The amount of monies NC provides to San Diego County is based on %3.86 of total CDBG allocation for the year
2001-2002.
Source: City of National City, March 2001.
City of National City
2001-2002 Annual Action Plan Page 1 - 22
.zETING DATE 04/24/01
City of National City, California
COUNCIL AGENDA STATEMENT
2
AGENDA ITEM NO.
ITEM TITLE WARRANT REGISTER #42
PREPARED BY ROBERT A. RABAGO DEPARTMENT FINANCE
EXPLANATION Ratification of Warrant Register #42
per government section code 37208.
CEnvironmental Review N/A
Financial Statement
N/A
>STAFF RECOMMENDATION
I recommend certification of these warrants for a total of $415,711.61
Approved BYE'
Finance Dir3 or
Account No.
BOARD / COMMISSION RECOMMENDATION
0 G,CL cr cL- �� . -a fina/ktG�.� 16(95ca—//v/a2
/`' °�� `; arm: 1,ye, /44i
ATTACHMENTS ( Listed Below )
1. Warrant Register #42
2. Workers' Comp Warrant Register dated 4/11/01
Resolution No.
A-200 (9'99)
P
City of National City, California
COUNCIL AGENDA STATEMENT
MEETING DATE April 24, 2001
3
AGENDA ITEM NO.
(-ITEM TITLE
CLAIM FOR DAMAGES: Giuseppe Di Stefano
PREPARED BY Michael R. Dalla, CMQ ? ARTMENT City Clerk
EXPLANATION
The claim of Giuseppe Di Stefano arises from an occurrence on December, 2000
and was filed with the City Clerk's Office on March 12, 2001 .
(-Environmental Review xx N/A
Financial Statement
N/A
>STAFF RECOMMENDATION
Deny the claim, and refer to the City Attorney.
BOARD / COMMISSION RECOMMENDATION
N/A
ATTACHMENTS ( Listed Below )
N/A
A-200 (9/80)
Account No.
Resolution No.
City of National City, California
COUNCIL AGENDA STATEMENT
,EETING DATE April 24 2001
4
AGENDA ITEM NO.
ITEM TITLE
RESOLUTION APPROVING AN INTERBUDGET ADJUSTMENT REQUEST (IBAR) APPROPRIATING
$900,000 FROM SEWER UNDESIGNATED FUND BALANCE ACCOUNT 125-2501 TO WASTEWATER
ACCOUNT 125-422-222-272, SEWER TRANSPORTATION AND TREATMENT
PREPARED BY Stephen Kirkpatrick DEPARTMENT Public Works
EXPLANATION
As we reported to the City Council on January 16, 2001, the City of San Diego Metropolitan Wastewater
Department has adopted a new billing formula for all of the member agencies, which is based on total
flow, chemical oxygen demand, biological oxygen demand, and suspended solids.
It was further reported that as a result of this formula change and an increase in flow monitoring by the
City of San Diego, our sewer transportation and treatment cost has increased significantly. Our
projected flow rates from San Diego have increased to approximately 5.0 MGD for Fiscal Year 2000-01,
up from 3.8 MGD for Fiscal Year 1999-00.
It has now been determined that the Fiscal Year 2000-01 budget for sewer transportation must l
increased by $900,000 to cover the increased costs associated with the increased flow.
Environmental Review N/A
Financial Statement
Appropriate $900,000 from the `.wer Undesignated Fund Balance Account #125-2501 to Sewer
Transportation and Treatment A y • nt #125-422-222-272. # )
pf.4,/Accou No.
STAFF RECOMMENDATI6 Adopt the Resolution ap r•) A AID asp ( riating $900,000 from the Sewer Undesignated Fund
125-2501 to Wastewater A count 125-422-222- 2 .
BOARD / COMMISSION RECOMMENDATION
N/A
ATTACHMENTS ( Listed Below
Resolution
L. January 16, 2001 Council Report
IBAR
A-200 (9/80)
Resolution No.
RESOLUTION NO. 2001 — 54
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
APPROVING AN INTERBUDGET ADJUSTMENT REQUEST (IBAR)
APPROPRIATING $900,000 FROM SEWER UNDESIGNATED FUND BALANCE
ACCOUNT 125-2501 TO WASTEWATER ACCOUNT 125-422-222-272,
SEWER TRANSPORTATION AND TREATMENT
WHEREAS, as reported to the City Council on January 16, 2001, the City of San
Diego Metropolitan Wastewater Department has adopted a new billing formula for all of the
member agencies, which is based on total flow, chemical oxygen demand;; biological oxygen
demand, and suspended solids; and
WHEREAS, as a result of this formula change and an increase in flow monitoring
by the City of San Diego, the City's sewer transportation and treatment cost has increased
significantly from 3.8 MGD for Fiscal Year 1999-2000, to approximately 5.0 MGD for Fiscal
Year 2000-2001; and
WHEREAS, it has been determined that the Fiscal Year budget for sewer
transportation must be increased by $900,000 to cover the increased costs associated with the
increased flow.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby approves an interbudget adjustment request (IBAR) appropriating $900,000
from Sewer Undesignated Fund Balance Account 125-2501 to Wastewater Account 125-422-
222-272, Sewer Transportation and Treatment to cover the increased costs associated with the
increased sewer transportation flow.
PASSED and ADOPTED this 24th day of April, 2001.
George H. Waters, Mayor
AI EST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
City Attorney
City of National City, California
COUNCIL AGENDA STATEMENT
IscETING DATE January 16, 9001
AGENDA ITEM NO.
/'ITEM TITLE
Status Report of the Increasing Costs Being Charged to National City by San Diego Metropolitan
Wastewater for Treatment of Our Sewage
PREPARED BY Joe Smith DEPARTMENT Public Works
EXPLANATION
See attached explanation.
(Environmental Review
Financial Statement
No impact as a result of this r
>STAFF RECOMMENDAT
Review report and provid
NIA
e/1'
Io ,,�fJ
lir,_, w • taff.
Account No.
BOARD / COMMISSION RECOMMENDATION
N/A
ATTACHMENTS ( Listed Below )
Resolution No.
A-200 (9/80)
• •
Explanation:
The existing sanitary sewer system for National City consists of two major parts. The first part is the
local collection system, consisting of approximately 97 miles of pipeline. The local system is connected
to the second part of the system, a transmission and treatment center operated by the San Diego
Metropolitan Wastewater Department. The transmission system takes the sewage, which is collected in
the local system to the Point Loma Treatment Plant via a large transmission main. Our projected flow
rates, which determines the cost for Transportation and Treatment, is supplied to us by the San Diego
Metropolitan Wastewater Department. This year there is a substantial increase in our projected flow,
causing a significant impact to the National City Wastewater budget. The City of San Diego Metropolitan
Wastewater Department estimates our flow at approximately 5.0 MGD for FY-01, with increases in the
following years. This is an increase in flow of 1.2 MGD from approximately 3.8 MGD for FY-00. This
increase in flow is due primarily to an increase in flow monitoring by the City of San Diego. As a result of
the sudden increase, we performed our own flow monitoring and basically agree with San Diego's flow
projections. However, we take some exceptions to the sewage strength factors used in the flow
calculation. We are in the process of discussing these factors with San Diego, but the discussions, even
if successful, will have only minor effect on the flow projections.
The original projected cost for FY-01 was $3,479,000, while the new projection is $4,564,565, requiring
$1,085,565 from our Rate Stabilization Reserves. For FY-02, the pattern is much the same. The
original projection was $3,232,000 and the new projection is $4,798,374. This will require the use of
Rate Stabilization Reserves of $1,566,374.
At this time, we have approximately $11,000,000 in reserves. Approximately 50% of this amount is
earmarked for such uses as Valencia Park Trunk Rehabilitation ($500,000), State and Fedefal Reserves
requirements for operating and replacement reserves (40% of Operating Budget), and Council Required
Reserves (5% of Operating Budget). The remaining reserves will be depleted very quickly if this pattern
continues. This rapid decrease in reserves will also impact the amount of interest paid to the general
fund. It is likely that we will have to change the rate that residents are charged for sewer service in FY-
03.
DATE
April 24, 2001
INTRABUDGET ADJUSTMENT REQUEST
DEPARTMENT
ACTIVITY OR DIVISION
Public Works
Wastewater
STATEMENT OF PROBLEM AND TIME URGENCY
AMOUNT NEEDED
$ 900,000
FROM: 125-2501
TO:
TRANSFER:
ACCT. #
DEPARTMENT HEAD
TITLE
Sewer Undesignated Fund
125-422-222-272 Transportation & Treatment
ADMINISTRATIVE REVIEW/COMMENTS
THIS PORTION TO BE COMPLETED
BY FINANCE DEPARTMENT
UNENCUMBERED
BALANCE
AS
OF
FINANCE
INITIAL
ORIGINAL PREVIOUS
APPROPRIATION TRANSFERS IN[OUT]
CM
Date
Approval
Disapproval
cc: Budget File - White
Requesting Dept. Head - Yellow
City Manager - Pink
Originating Dept. - Goldenrod
Approval
Disapproval
FIN. DIR.
Date
Date Posted
FIN-003 4/90
EETING DATE April 24, 2001
City of National City, California
COUNCIL AGENDA STATEMENT
AGENDA ITEM NO. 5
ITEM TITLE
RESOLUTION APPROVING AN INTERBUDGET ADJUSTMENT REQUEST (IBAR) APPROPRIATING $295,000
FROM THE GENERAL FUND UNDESIGNATED BALANCE 001-2501 TO FACILITIES ACCOUNT 626-422-223-
234 TO PAY FOR THE INCREASED COST OF ELECTRICITY AND GAS USED BY CITY BUILDINGS AND
FACILITIES
PREPARED BY Stephen Kirkpatrick DEPARTMENT Public Works
EXPLANATION
On January 16, 2001, we presented the attached report to City Council tilted "Estimated Shortfalls for Utility
Payments to SDG&E for Public Works Facilities Maintenance and Streets Divisions". The January report alerted
the City Council to the potential budget shortfalls that the City is facing in the Accounts 001-422-221-235 Street
Lights and Signals and 626-422-223-234 Electricity and Gas, due to the escalating cost of the utilities. Account
001-422-221-235 is used to pay for electricity for the street illuminating lights and traffic control signals. Account
626-422-223-234 is used to pay for electricity and gas for all City buildings and facilities.
The issue before Council today is to make a budget appropriation to Account 626-422-223-234 to cover the actual
increased cost of electricity and gas experienced in the current budget year. It is estimated, based upon what has
been paid to -date this fiscal year and the actual gas and electricity used by City buildings and facilities in April, May,
and June of the year 2000 (reduced by 7% in accordance with the City Council Conservation Resolution) multiplied
by the current cost of these utilities, that the shortfall is expected to be $295,000. This is the estimated amount due
this fiscal year. It does not include the deferred amount that will be due in Fiscal Year 2003-04 as discussed in the
January report.
Due::to a number of unexpected rebates that were credited directly to Account 001-422-221-235, it does not
currently appear that a budget shortfall will exist for Street Lights and Signals Account. Therefore, at this time there
is not a need to recommend a budget appropriation for this account.
Environmental Review X N/A
Financial Statement
Appropriate $295,000 from the General Fund Undesignated Fund Balance Account 001-2501 to the Facilities
Maintenance Account 626-422-223-23 lectricity and Gas. This will increase the amount budgeted to $657,000
for Fiscal Year 2000-01. /
/`i a tint o.
,====...<
STAFF RECOMMENDATII�
Adopt the Resolution approve •r e I:AR appropri ng $295,000 from the General(,Pund Undesignated Balance
001-2501 to Facilities Account 6 6-422-223-234.
BOARD / COMMISSION RECOMMENDATION
N/A
ATTACHMENTS ( Listed Below )
Resolution
January 16, 2001 City Council Report
IBAR
Resolution No.
2001-55
A-200 (9/80)
RESOLUTION NO. 2001 — 55
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
APPROVING AN INTERBUDGET ADJUSTMENT REQUEST (IBAR)
APPROPRIATING $295,000 FROM THE GENERAL FUND UNDESIGNATED
BALANCE ACCOUNT 001-2501 TO FACILITIES ACCOUNT 626-422-223-234
TO PAY FOR THE INCREASED COST OF Fl FCTRICITY AND GAS
USED BY CITY BUILDINGS AND FACILITIES
WHEREAS, due to the escalating cost of gas and electricity, it is estimated that
Facilities Account 626-422-223-234 will have a shortfall of approximately $295,000 for Fiscal
Year 1999-2000.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby approves an interbudget adjustment request (IBAR) appropriating $295,000
from the General Fund Undesignated Balance Account 001-2501 to Facilities Account 626-422-
223-234 to cover the increased cost of electricity and gas used by City buildings and facilities.
PASSED and ADOPTED this 24th day of April, 2001.
George H. Waters, Mayor
ATTEST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney
City of National City, California
COUNCIL AGENDA STATEMENT
MEETING DATE .lanuary 16 2001
AGENDA ITEM NO.
ITEM TITLE
Estimated Shortfalls for Utility Payments to SDG&E for Public Works Facilities Maintenance and Streets
Divisions for FY-00-01
PREPARED BY John Cole/Jeff Servatius DEPARTMENT Public Works
EXPLANATION
See Attached Explanation
Environmental Review a N/A
Financial Statement
STAFF RECOMMENDAT; ON"
Report is for information ,ur
BOARD / COMMISSION RECOMMENDATION
N/A
Account No.
ATTACHMENTS f; Listed°&low
Resolution No.
A-200 (9/80)
A
•
Explanation:
During budget preparation for FY 00-01, we contacted SDG&E and were informed that there might be
minor rate increases in the upcoming fiscal year for gas and electricity. After review of the historical data
for the two accounts utilized to pay gas and electricity bills for these divisions, the budget was prepared
with some minor increases requested. However, as a result of the much higher than anticipated
electricity and gas rates being charged, we are now faced with significant budget shortfalls.
With the high costs for electricity, and the outcry from the public, the State Legislature has imposed a soft
cap on what we can be billed for electricity by the provider. This cap did not lower the amount we are
being charged; it simply limited what the provider can bill at this time. The amount above the cap
becomes due in FY 02-03 or 03-04. Also, in October there was an increase of approximately 100% in
the cost of natural gas. This increase was not included in the cap imposed by the State Legislature and
will need to be paid from this year's budget.
Upon recent contact with SDG&E, we were informed that there would be an approximate 100% increase
in the cost of gas and electricity supplied to City buildings and a 30% increase in the cost of electricity
supplied for street lighting/traffic signals. For the Facility Maintenance Account 626-422-223-234, we
anticipate a $220,000 shortfall for FY 00-01, with $325,000± being owed in FY 02-03 or 03-04. For the
Streets Accounts, we anticipate a shortfall of $52,000, with $130,000± being owed in FY 02-03 or 03-04.
In addition, unless the State Legislation acts further, the amount that we owe in FY 02-03 or 03-04 will
continue to grow through the next two fiscal years. The following table summarizes the budget shortfalls
for FY 00-01:
Account
Total
Estimated
Energy Costs
for FY 00-01
Estimate of
Cost Due FY
00-01
Budgeted
Amount for
FY 00-01
Shortfall
FY 00-01
-
Estimate of
Deferred
Amount Due
for FY 00-01
City Building
and
Facilities
(Gas and
Electric)
$907,000
$582,000
$362,000
$220,000
$325,000
Street Lights
and Traffic
Signals
(Electric
Only)
$571,000
$441,000
$385,000
$56,000
$130,000
Based upon the present costs, the Facilities Maintenance Account will be depleted within 2 months, and
the Streets account within 3 to 4 months. Under this scenario we will need approximately $276,000 to
complete the current fiscal year and $455,000 set aside to pay the amount deferred for this fiscal year
that will be due in 2003 or 2004.
The figures used in this report are estimates and will change if the energy provider (SDG&E) is granted a
rate increase, or if there are further regulations from the State or Federal Governments. This report is
presented to Council to advise of the current situation, but the energy market is changing daily. We will
request appropriate budget adjustments as necessary.
DATE April 2A, 2001
INTRABUDGET ADJUSTMENT REQUEST
DEPARTMENT
ACTIVITY OR DIVISION
Public Works
Facilities Maintenance
STATEMENT OF PROBLEM AND TIME URGENCY
AMOUNT NEEDED
$ 295,000
FROM: 001-2501
TRANSFER:
ACCT. #
DEPARTMENT HEAD
TITLE
General Fund Undesignated
TO: 626-422-223-234 Electricity & Gas
ADMINISTRATIVE REVIEW/COMMENTS
THIS PORTION TO BE COMPLETED
BY FINANCE DEPARTMENT
UNENCUMBERED AS FINANCE
BALANCE OF INITIAL
ORIGINAL PREVIOUS
APPROPRIATION TRANSFERS IN[OUT]
>CM
Date
Approval
Disapproval
cc: Budget File - White
Requesting Dept. Head - Yellow
City Manager - Pink
Originating Dept. - Goldenrod
Approval
Disapproval
FIN. DIR
Date
Date Posted
FIN-003 4/90
City of National City, California
COUNCIL AGENDA STATEMENT
MEETING DATE April 24, 2001
6
AGENDA ITEM NO.
ITEM TITLE
RESOLUTION APPROVING A RETAINER AGREEMENT WITH THE LAW FIRM OF LEWIS,
D'AMATO, BRISBOIS & BISGAARD
PREPARED BY /DEPARTMENT
George H. Eiser, III
EXPLANATION
City Attorney
Pursuant to the direction of the City Council, a retainer agreement with the law firm of Lewis,
D'Amato, Brisbois & Bisgaard is submitted for approval. Under the retainer agreement, the law
firm would act as defense counsel to defendant George H. Waters in the litigation entitled Fred R.
Soto v. George H. Waters and Janice Martinelli. The defense is being provided under reservation of
rights (see attached letter to attorney Lane E. Webb).
J
Environmental Review
Financial Statement
Funds are budgeted.
>STAFF RECOMMENDATION
Adopt resolution.
X NIA
Account No.
BOARD / COMMISSION RECOMMENDATION
N/A
ATTACHMENTS ( Listed Below) Resolution No. 2001-56
Resolution
Retainer Agreement
Letter to attorney Lane E. Webb
A -zoo (9/80) _ ""
RESOLUTION NO. 2001— 56
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
APPROVING A RETAINER AGREEMENT WITH THE
LAW FIRM OF LEWIS, D'AMATO, BRISBOIS & BISGAARD
BE IT RESOLVED that the City Council of the City of National City hereby
approves a retainer agreement with the law firm of Lewis, D'Amato, Brisbois & Bisgaard to act
as act as defense counsel to defendant George H. Waters in the litigation entitled Fred R. Soto v.
George H. Waters and Janice Martinelli. Said agreement is on file in the office of the City Clerk.
PASSED and ADOP IEl) this 241 day of April, 2001.
George H. Waters, Mayor
ATTEST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
',L' 1T
George H. Eiser, III
City Attorney
City of National City
Office of the City Attorney
1243 National City Boulevard, National City, CA 91950-4301
George H. Eiser, Ill • City Attorney
(619) 336-4220 Fax (619) 336-4327 TDD (619) 336-1615
March 28, 2001
Lane E. Webb, Esq.
Lewis, D'Amato, Brisbois & Bisgarrd, LLP
550 C Street, Suite 800
San Diego, CA 92101-3540
RE: Fred R. Soto v. George H. Waters, et al.;
San Diego Superior Court Case No. GIS005076
Dear Mr. Webb:
The City Council of the City of National City has considered your Demand for Defense and
Indemnification of Mayor George H. Waters in the above -referenced litigation. The City
Council has determined that the City will provide a defense for Mayor Waters, including
reimbursement to Mayor Waters for all properly documented court costs and attomey's fees
incurred to date, provided that the City reserves the right to discontinue such defense if it is
established that Mayor Waters' conduct was not within the scope of employment. Further, the
City reserves the right not to pay any judgment or settlement that may occur in this, matter until it
is established that such judgment or settlement arose out of conduct which was within the source
and scope of employment.
Very Truly Yours,
George H. Eiser, III
City Attorney
GHE/gmo
cc: City Manager
Risk Manager
John S. Moot, Esq.
Robin Leslie Stewart, Esq.
George Eiser, Esq.
April 16, 2001
Page 7
the judicial resolution of such dispute shall be proper only within the County of San
Diego, California.
18. MODIFICATION IN WRITING ONLY.
No variance, change, modification or augmentation of this Agreement shall be
effective unless and until confirmed in a writing signed by the Firm and the Client
making express reference to this Agreement. This document embodies the whole
agreement of the parties. There are no promises, terms, conditions or obligations other
than those contained herein, and this contract shall supersede all previous
communications, representations, or other agreements, either verbal or written,
between the Firm and the Client.
19. ATTORNEYS' FEES ARISING FROM A DISPUTE
In the event that an arbitration or lawsuit arises concerning a dispute relating to
the validity or enforcement of this Agreement, the prevailing party shall .be entitled to
collect reasonable attorneys' fees incurred in the course of litigating the claim.
20. FUTURE SERVICES.
This Agreement will also apply to services rendered for such future matters that
we mutually agree will be handled by the Firm.
Thank you for choosing Lewis, D'Amato, Brisbois & Bisgaard LLP as your
counsel. If you wish to seek the advice of other counsel in respect to this Agreement,
please feel free to do so. If this letter correctly sets forth your understanding of the
scope of the services to be rendered to you and if the terms of the engagement are
satisfactory, please execute the enclosed copy of this letter and return it to us. If the
scope of services described in this letter are not satisfactory to you, please let us know.
LEWIS, D'AMATO, BRISBOIS & BISGAARD LIP
By: 3 ,: Lk\\'Ack
Lane E. Webb, Esq.
Accepted and agreed to:
CITY OF NATIONAL CITY
By: Dated:
R. Mitchell Beauchamp, Vice Mayor for
the City of National City
SD2001:114.16.1
George Eiser, Esq.
April 16, 2001
Page 6
12. DOCUMENT STORAGE POLICY.
The Firm's policy with regard to documents at the conclusion of a matter is to
maintain documents in storage for a period of (5) years. At the conclusion of that
period all documents in a file are destroyed and discarded. Accordingly, if there are
any documents or papers you wish removed from your file at the conclusion of a matter,
it will be necessary for you to advise us of that request in writing to ensure that the
documents are not destroyed.
13. DISCLAIMER OF GUARANTEE
The Client understands that the Firm has made no representation or guarantee
concerning the favorable termination of this matter or the favorable outcome of any
legal proceedings that may be filed or defended on behalf of the Client.
14. GENERAL.
This Agreement is deemed to have been executed, and is intended to be
performed in the State of California, subject to its laws, regardless of whether services
are actually rendered outside of the State.
15. NO PROMISES AND WARRANTIES
No promise, representation or warranty has been made by or for the Firm in
respect of this Agreement, except as appears in this document. The Client
acknowledges having had the opportunity to seek the advice of separate counsel with
respect to this Agreement and you have availed yourself of that opportunity to the
extent that you deemed appropriate.
16. LEGAL MALPRACTICE INSURANCE.
Business and Professions Code § 6148 requires that this Agreement contain a
representation concerning the Firm's errors and omissions insurance (legal malpractice
insurance). You are advised that as of the date of this letter, Lewis, D'Amato, Brisbois
& Bisgaard has coverage applicable to the services to be rendered pursuant to this
agreement.
17. DISPUTE RESOLUTION.
Any dispute which may arise with respect to this Agreement, without limitation,
will be resolved pursuant to the laws of the State of California. The forum for venue for
SD2001:11416.1
George Eiser, Esq.
April 16, 2001
Page 5
9. ATTORNEYS' LIENS.
In consideration of the terms of this agreement, as security for the payment of
the fees, costs, and out-of-pocket expenses incurred on your behalf pursuant to its
terms, and without prejudice to any other rights, recourse, or remedies we may have,
you hereby grant us a lien upon any sum or sums recovered by you, or on your behalf
(or which you are entitled to recover) in this or any other matter to which this or a similar
agreement may pertain, and upon any sum or sums which may be on deposit in the
Firm's client trust and/or retainer account pursuant to this agreement. You expressly
authorize us to resort to such lien to obtain partial or total satisfaction of any obligation
or debt which you may have to us arising from this agreement.
10. TERMINATION OF THE FIRM BY THE CLIENT.
The Client shall have the right to terminate and discharge the Firm at any time.
The termination or discharge of the Firm must be in writing. In such event, the Client
authorizes the Firm to make and retain a duplicate of the Client's file. The Client further
agrees to bear all reasonable costs of transferring the new matter to counsel chosen by
the Client.
11. WITHDRAWAL FROM REPRESENTATION BY THE FIRM.
The attorney -client relationship is one of mutual trust and confidence. If you
have any questions at all about the provisions of this Agreement, we invite your
inquiries. We encourage our clients to inquire about any matter relating to our fee
agreements or periodic statements that are in any way unclear or appear
unsatisfactory. If you do not meet your obligation of timely payments under this
Agreement, we reserve the right to withdraw from this representation on that basis
alone, subject, of course, to any required judicial or administrative approvals.
In addition, the Client agrees that the Firm may withdraw from representing the
Client upon written notice sufficient to enable the Client to retain new counsel. Without
limitation, the Firm can withdraw as counsel: (1) if the Firm decides to cease the
practice of law; (2) if evidence discloses that the Client's claim is without legal merit; (3)
if the Firm determines that it does not wish to further prosecute and/or defend the
Client's claims; (4) in the event that the Client does not provide reasonable cooperation
in the prosecution or the defense of the matter; (5) if the Client is in material breach of
this Agreement; or (6) for any reason authorized by law or the Rules of Professional
Conduct of the California Bar.
SD2001:11416.1
George Eiser, Esq.
April 16, 2001
Page 4
Our fee structure is based upon the premise that all statements are due and
payable upon receipt, but in any event, no later than thirty (30) days thereafter.
We do our best to see that our clients are satisfied not only with our services, but
also with the reasonableness of the fees and disbursements charged for those
services. Therefore, if you have any question about or objection to a statement, inquiry
shall be timely only if made within 10 days after the date of the invoice. In the absence
of a timely written inquiry, the invoices will be deemed to have been accepted and
acknowledged by you as correct through the period which is actually covered by each
invoice. In the event you fail to pay any invoice within 30 days of the statement date,
we shall be entitled to charge interest at the maximum rate allowed by law, on the
amount of such invoice from the statement date until paid in full. Any waiver of such
right shall not be deemed a waiver of any future interest. If you object only to a portion
of a statement, we ask that you pay the remainder, which will not constitute a waiver of
your objections.
8. RETAINER.
It is the Firm's policy to require a retainer before commencing work on any
matter. We have previously received a retainer from Mayor Waters' personal account
in the amount of $5,000.00. This retainer will be applied to the first billing in this matter.
The amount of this retainer does not represent our estimate of the total charges which
may be incurred, but is only a partial advance payment.
Based on the financial condition of the City we will not require a further retainer
from you in this matter. However, should you become delinquent on the payment of
any statement, we will request that your retainer be fully restored. If that happens, you
must immediately restore the retainer to its full amount upon our request. If you fail to
so restore the retainer, we have the right to resign from further representation of you.
Each periodic statement will reflect all payments made from the Client's retainer
account in that matter.
Any amount of fees for legal services as well as charges, costs and
disbursements not so paid from the retainer amount is due and payable directly by you
upon receipt of each periodic statement. As stated below, we specifically reserve the
right to withdraw from the representation described in this letter and to immediately
cease performing services if we do not receive full payment of any amounts owed to us
within thirty (30) days of our statement.
SD2001:11416.1
George Eiser, Esq.
April 16, 2001
Page 3
after the effective date of the new rates. We try to use paralegal support on projects
where possible and we will be happy to discuss the staffing of your project with you.
The Client currently has the potential right to recover legal fees from Fred R.
Soto, individually in the approximate amount of $11,000.00. Such fees are contingent
on an award of same and potential reduction by the San Diego Superior Court in
connection with the SLAPP suit Special Motion to Strike filed previously in this matter.
Any recovery of such fees belongs to the Client and, at their option, will either be paid
directly to the Client or applied to any outstanding fees and costs generated in the
defense of this action.
6. COSTS, DISBURSEMENTS AND OTHER CHARGES.
We will incur various costs and expenses in performing legal services under this
Agreement. You agree to pay for those costs and expenses in addition to the hourly
fees. Costs and expenses commonly include process servers' fees, fees fixed by law
or assessed by public agencies, long distance telephone calls, messenger/delivery
fees, postage, parking, local travel expenses, photocopying/reproduction costs, charges
for computer legal research time and other similar items.
In addition, to aid in the preparation or presentation of your case, it may become
necessary to hire consultants or investigators, including, without limitation, co -counsel
and other professionals. We will not hire such persons unless you agree to pay their
fees and charges. We will select any consultants or investigators to be hired.
You will either pay directly the costs and other disbursements discussed above
or.you will reimburse us should we pay these costs and expenses on your behalf. In
the normal course of our work, we will bill you for smaller expense items, such as filing
fees, computerized research, postage, long distance telephone charges, copying
charges, recording fees, messenger services, service of process, court fees, field
expenses (i.e., mileage, meals, parking, lodging, etc.). In circumstances involving any
substantial expenditure involving outside vendors (such as depositions, exhibit
preparation or air fare), or substantial costs, such as experts, consultants or
investigators, we will require that you advance those sums to us before we expend
them or we may require that you directly reimburse the vendor.
7. PERIODIC STATEMENTS AND BILLING TERMS.
Our practice is to send periodic statements for services rendered during the
previous month or months and for disbursements incurred for our client's account. The
detail in the periodic statement will inform you of both the nature and progress of work
and of the fees and disbursements being incurred.
SD2001:11416.1
George Eiser, Esq.
April 16, 2001
Page 2
1. PARTIES TO AGREEMENT.
The parties to the Agreement are Lewis, D'Amato, Brisbois & Bisgaard LLP, a law
partnership ("Firm" or "we") and the City of National City ("Client" or "you").
2. CONDITIONS.
This Agreement will not take effect, and we will have no obligation to provide
legal services, until you return a signed copy of this agreement and pay the initial
retainer called for under Paragraph 8.
3. SCOPE OF ENGAGEMENT AND SERVICES.
The Client retains and employs the Firm to represent the Client's interest with
respect to those legal services which you request that we perform, and specifically the
defense of Soto v Waters, San Diego Superior Court Case #GIS 005076.
4. DUTIES OF CLIENT
We will endeavor to represent you competently in accordance with reasonable
legal and ethical standards. You agree to be truthful with us, to cooperate, to keep us
informed of developments, to abide by this Agreement, to pay our bills on time and to
keep us advised of your current address, telephone number and whereabouts.
5. LEGAL FEES.
Our billing practice is to charge for our services based primarily on the amount of
time devoted to a matter at hourly rates for the particular professionals involved. These
hourly rates are based upon experience, expertise and standing. Our current regular
rates for general litigation services are $175.00 per hour for partners and $150.00 per
hour for associates. All paralegal time is billed at the rate of $75.00 per hour. Billing is
in minimum units of 6 minutes.
At the time of our engagement by Mayor George Waters we agreed to an hourly
billing rate of $150.00 per hour for partners, $140.00 per hour for associates and
$65.00 per hour for paralegals based on the urgency of the matter and his limited
financial resources. We are agreeing to honor the above rates as a courtesy to the City
of National City but they do not represent our normal hourly billing rates.
These rates are modified by us from time to time and any new rates would be
implemented immediately after they are adopted and would apply to services rendered
SD2001:11416.1
LEWIS, D'AMATO, BRISBOIS & BISGAARD LLP
LOS ANGELES OFFICE
SUITE 1200
221 NORTH FIGUEROA STREET
LOS ANGELES, CALIFORNIA 90012
TELEPHONE (213) 250-1800
COSTA MESA OFFICE
SUITE 1400
650 TOWN CENTER DRIVE
CENTER TOWER BUILDING
COSTA MESA, CALIFORNIA 92626
TELEPHONE (714) 545-9200
SAN FRANCISCO OFFICE
SUITE 1400
ONE SANSOME STREET
SAN FRANCISCO, CALIFORNIA 94104
TELEPHONE (415) 362-2580
LANE E. WEBB
DIRECT DIAL: (619) 699-4921
E-MAIL: WEBB@LOBB.COM
George Eiser, Esq.
City Attorney
City of National City
1243 National City Blvd.
National City, CA 91950-4397
LAWYERS
SUITE 800
550 WEST "C" STREET
SAN DIEGO, CALIFORNIA 92101
TELEPHONE (619) 233-1006
WWW.LDBB.COM
April 16, 2001
Re: Attorney -Client Hourly Fee Agreement
Dear Mr. Eiser:
INLAND EMPIRE OFFICE
TRI-CITY CORPORATE CENTRE
SUITE 600
650 EAST HOSPITALITY LANE
SAN BERNARDINO, CALIFORNIA 92408
TELEPHONE (909) 387-1130
SACRAMENTO OFFICE
SUITE 200
2500 VENTURE OAKS WAY
SACRAMENTO, CALIFORNIA 95833 .
TELEPHONE (916) 564-5400
FACSIMILES:
LOS ANGELES: (213) 250-7800
SAN DIEGO: (619) 233-8627
COSTA MESA: (714) 850-1030
SAN FRANCISCO: (415) 434-0882
SAN BERNARDINO: (909) 387-1138
SACRAMENTO: (916) 564-5444
OUR FILE NO.
25538-002
This letter confirms the, terms and conditions upon which Lewis, D'Amato,
Brisbois & Bisgaard LLP ("the Firm") will provide legal services to you as a client of the
Firm. A written agreement such as the one set forth in this letter is required by
California Business and Professions Code § 6148 for most attorney engagements, and
is advisable otherwise to minimize the possibility of any misunderstanding between the
Firm and its clients.
Please read with care the terms and conditions upon which the Firm is willing to
accept acting as your attorneys and representing your interests. If the terms and
conditions are acceptable to you, please execute this letter where indicated below and
return it to the undersigned. By executing this letter, you are entering into a contract
that is binding on both the Firm and you. The purpose of this letter, therefore, is to set
forth the scope of our engagement as legal counsel to you, to confirm that we are in
mutual agreement with respect to the same, to set forth the financial arrangements
pursuant to our engagement and to verify your approval of such financial arrangements.
The terms and conditions of the Attorney Fee Agreement ("Agreement") are as
follows:
SD2001:11416.1
.EETING DATE
ITEM TITLE
City of National City, California
COUNCIL AGENDA STATEMENT
April 24, 2001
AGENDA ITEM NO. 7
Resolution Authorizing and Approving the Borrowing of Funds for Fiscal Year 2001-
2002; The Issuance and Sale of a 2001-2002 Tax And Revenue Anticipation Note
Therefor and Participation in the California Communities Cash Flow Financing Program
PREPARED BY Marylou Matienzo DEPARTMENT
Finance
EXPLANATION
The attached proposal authorizes the City to again issue TRANs, an annual process which we have
engaged in continuously since 1994 that generated net interest earnings of $100,000 in 1994 and
approximately $77,000 in 2000.
Please see attached explanation.
CEnvironmental Review
(-Financial Statement
N/A
Finance Director
The City's participation in the 2001 TRANs would generate net gain in interest earnings to the
General Fund of approximately $70,000.
Approved Bym
Account No.
f STAFF RECOMMENDATION
Staff recommends that the City approve the Resolution authorizing the issuance of tax and revenue
anticipation notes for the 2001-2002 fiscal year.
BOARD / COMMISSION RECOMMENDATION
ATTACHMENTS ( Listed Below )
1. Detailed Explanation.
2. Prepares Resolution.
3. Purchase Agreement.
Resolution No. 2001-57
A -too (9:99)
Background
The attached resolution authorizes the issuance by the City of National City not to exceed
$2,000,000 2001 Tax and Revenue Anticipation Notes (TRANs). The maturity of the 2001
TRANs will not exceed 15 months and will be dated July 3, 2001. The TRANs will be issued
through a statewide financing program jointly sponsored by the California State Association of
Counties and the League of California Cities.
Purpose
The purpose of the temporary borrowing is to increase available cash balances which
provide operating funds to cover cash shortfalls. Cash shortfalls arise due to the timing
differential of monthly cash receipts and disbursements throughout the 2001-01 fiscal year. The
borrowing also provides an additional source of revenue because the cost of the borrowing is less
than reinvestment income, producing a net gain to the City of approximately $70,000.00 in
interest earnings.
Discussion
The advantages of participating in the statewide TRANs program rather than an
individual financing or another pooled TRANs are many. The costs are lower because they are
shared by other participating cities, counties and special districts. There is standardized
documentation and credit criteria employed in the financing, as well as a streamlined issuance
process. The statewide program also offers the City the option of issuing TRANs which mature
in 12, 13 or 15 months. The 13 and 15 month options will provide the City with one or three
more months of interest earnings, respectively. Finally, there is the ability to obtain the highest
credit rating on the financing with the availability of insurance.
The City's TRANs maturity will be up to 15 months dated July 3, 2001 and due no later
than October 2, 2002. The City will determine the maturity of the TRANS depending on market
conditions in June 2001. Even if the City issues 13 or 15 month TRANs, the City will be able to
issue another 12, 13 or 15 month TRANs on July 1, 2002.
The attached resolution authorizes the issuance by the City of Tax and Revenue
Anticipates Notes (TRANs) in an amount not to exceed $2,000,000. The resolution authorizes
various financing documentation, including a purchase agreement and an indenture which is on
file in the City Clerk's Office. The resolution authorizes the Mayor, City Manager and Finance
Director to sign financing documentation in connection with the issuance of TRANs. The
resolution also appoints the law firm of Orrick, Herrington & Sutcliffe as bond counsel to the
City. Orrick is a national law firm which specializes in municipal bond law.
Recommendation
Staff recommends that the City Council approve the Resolution authorizing the issuance
of Tax and Revenue Anticipation Notes (TRANs) for the 2001-02 fiscal year.
RESOLUTION NO. 2001— 57
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
AUTHORIZING AND APPROVING THE BORROWING
OF FUNDS FOR FISCAL YEAR 2001-2002; THE ISSUANCE AND
SALE OF A 2001-2002 TAX AND REVENUE ANTICIPATION NOTE
THEREFOR; AND PARTICIPATION IN THE CALIFORNIA
COMMUNITIES CASH FLOW FINANCING PROGRAM
WHEREAS, local agencies are authorized by Section 53850 to 53858, both
inclusive, of the Government Code of the State of California (the "Act") (being Article 7.6,
Chapter 4, Part 1, Division 2, Title 5 of the Government Code) to borrow money by the issuance
of temporary notes; and
WHEREAS, the legislative body (the "Legislative Body") of the local agency
specified in Section 25 hereof (the "Local Agency") has determined that a sum (the "Principal
Amount"), not to exceed the Maximum Amount of Borrowing specified in Section 25 hereof,
which Principal Amount is to be confirmed and set. in the Pricing Confirmation (as defined in
Section 4 hereof), is needed for the requirements of the Local Agency, to satisfy obligations of
the Local Agency, and that it is necessary that said Principal Amount be borrowed for such
purpose at this time by the issuance of a note therefore in anticipation of the receipt of taxes,
income, revenue, cash receipts and other moneys to be received by the Local Agency for the
general fund of the Local Agency attributable to its fiscal year ending June 30, 2002 ("Fiscal
Year 2001-2002"); and
WHEREAS, the Local Agency hereby determines to borrow, for the purposes set
forth above, the Principal Amount by the issuance of the Note (as hereinafter defined); and
WHEREAS, it appears, and this Legislative Body hereby finds and determines,
that the Principal Amount, when added to the interest payable thereon, does not exceed eighty-
five percent (85%) of the estimated amount of the uncollected taxes, income, revenue (including,
but not limited to, revenue from the state and federal governments), cash receipts and other
moneys of the Local Agency attributable to Fiscal Year 2001-2002 and available for the payment
of the principal of the Note and the interest thereon; and
WHEREAS, no money has heretofore been borrowed by or on behalf of the Local
Agency through the issuance of tax anticipation notes or temporary notes in anticipation of the
receipt of, or payable from or secured by, taxes, income, revenue, cash receipts or other moneys
for Fiscal Year 2001-2002; and
WHEREAS, pursuant to Section 53856 of the Act, certain moneys which will be
received by the Local Agency during and attributable to Fiscal Year 2001-2002 can be pledged
for the payment of the principal of the Note and the interest thereon (as hereinafter provided);
and
WHEREAS, the Local Agency has determined that it is in the best interests of the
Local Agency to participate in the California Communities Cash Flow Financing Program (the
"Program"), whereby participating local agencies (collectively, the "Issuers") will
simultaneously issue tax and revenue anticipation notes; and
Resolution No. 2001 —
April 24, 2001
Page 2 of 19
WHEREAS, the Program requires the participating Issuers to sell their tax and
revenue anticipation notes to the California Statewide Communities Development Authority (the
"Authority") pursuant to note purchase agreements (collectively, "Purchase Agreements"), each
between such individual Issuer and the Authority, and dated as of the date of the Pricing
Confirmation, a form of which has been submitted to the Legislative Body; and
WHEREAS, the Authority, in consultation with Sutro & Co. Incorporated, as
financial advisor for the Program (the "Financial Advisor"), will form one or more pools of notes
(the "Pooled Notes") and assign each note to a particular pool (the "Pool") and sell a series (the
"Series") of bonds (the "Bonds") secured by each Pool pursuant to an indenture (the "Indenture")
between the Authority and Wells Fargo Bank, National Association, as trustee (the "Trustee"),
each Series distinguished by whether or what type(s) of Credit Instrument(s) (as hereinafter
defined) secure(s) such Series, by the principal amounts of the notes assigned to the Pool or by
other factors, and the Local Agency hereby acknowledges and approves the discretion of the
Authority to assign the Note to such Pool and such Indenture as the Authority may determine;
and
WHEREAS, as additional security for the owners of each Series of Bonds, all or a
portion of the payments by all of the Issuers of the notes assigned to such Series may or may not
be secured (as indicated in the Pricing Confirmation) by an irrevocable letter (or letters) of credit
or policy (or policies) of insurance or proceeds of a separate bond issue issued for such purpose
(the "Reserve Fund") or other credit instrument (or instruments) (collectively, the "Credit
Instrument") issued by the credit provider or credit providers designated in the Indenture, as
finally executed (collectively, the "Credit Provider"), pursuant to a credit agreement or
agreements or commitment letter or letters or, in the case of the Reserve Fund, an indenture (the
"Reserve Indenture") (collectively, the "Credit Agreement") between (i) in the case of an
irrevocable letter (or letters) of credit or policy (or policies) of insurance, the Authority and the
respective Credit Provider and (ii) in the case of the Reserve Fund, the Authority and Wells
Fargo Bank National Association, as trustee of the Reserve Indenture (the "Reserve Trustee");
and
WHEREAS, if, as designated in the Pricing Confirmation, the Credit Instrument m
the Reserve Fund, bonds issued pursuant to the Reserve Indenture (the "Reserve Bonds") may, as
indicated in the Pricing Confirmation, be secured by an irrevocable letter of credit or policy of
insurance or other credit instrument (the "Reserve Credit Instrument") issued by the credit
provider identified in the Reserve Indenture as finally executed (the "Reserve Credit Provider"),
pursuant to a credit agreement or commitment letter (the "Reserve Credit Agreement") identified
in the Reserve Indenture as finally executed, such Reserve Credit Agreement being between the
Authority and the Reserve Credit Provider; and
WHEREAS, the net proceeds of the Note may be invested by the Local Agency in
Permitted Investments (as defined in the Indenture) or in any other investment permitted by the
laws of the State of California, as now in effect and as hereafter amended, modified or
supplemented from time to time; and
Resolution No. 2001 —
April 24, 2001
Page 3 of 19
WHEREAS, as part of the Program each participating Issuer approves the
Indenture, the alternative forms of Credit Agreements, if' any, and the alternative forms of
Reserve Credit Agreements, if any, in substantially the forms presented to the Legislative Body,
with the final form of Indenture, type of Credit Instrument and corresponding Credit Agreement
and type of Reserve Credit Instrument and corresponding Reserve Credit Agreement, if any, to
be determined and approved by delivery of the Pricing Confirmation; and
WHEREAS, pursuant to the Program each participating Issuer will be responsible
for its share of (a) the fees of the Trustee and the costs of issuing the applicable Series of Bonds,
and (b), if applicable, the fees of the Credit Provider, the fees of the Reserve Credit Provider
(which shall be payable from, among other sources, investment earnings on the Reserve Fund
and moneys in the Costs of Issuance Fund established and held under the Indenture), the Issuer's
allocable share of all Predefault Obligations and the Issuer's Reimbursement Obligations, if any
(each as defined in the Indenture); and
WHEREAS, pursuant to the Program each participating Issuer will be responsible
for its share of the fees of the Reserve Trustee and the costs of issuing the applicable Series of
Reserve Bonds, all such costs and fees being payable from the proceeds of the applicable Series
of Bonds (or, with respect to costs and fees of the Reserve Credit Provider, as may otherwise be
provided in the Reserve Indenture); and
WHEREAS, pursuant to the Program, the underwriter will submit an offer to the
Authority to purchase, in the case of each Pool of Notes; the Series of Bonds which will be
secured by the Indenture to which such Pool will be assigned; and
WHEREAS, it is necessary to engage the services of certain professionals to assist
the Local Agency in its participation in the Program; and
NOW, THEREFORE, the Legislative Body hereby finds, determines, declares and
resolves as follows:
Section 1. Recitals. This Legislative Body hereby finds and determines that
all the above recitals are true and correct.
Section 2. Authorization of Issuance. This Legislative Body hereby
determines to borrow solely for the purpose of anticipating taxes, income, revenue, cash receipts
and other moneys to be received by the Local Agency for the general fund of the Local Agency
attributable to Fiscal Year 2001-2002, by the issuance of a note in the Principal Amount under
Sections 53850 et seq. of the Act, designated the Local Agency's "2001 Tax and Revenue
Anticipation Note" (the "Note"), to be issued in the form of one fully registered note at the
Principal Amount thereof, to be dated the date of its delivery to the initial purchaser thereof, to
mature (without option of prior redemption) not more than fifteen months thereafter on a date
indicated on the face thereof and determined in the Pricing Confirmation (the "Maturity Date"),
and to bear interest, payable at maturity (and if the maturity is more than twelve months from the
Resolution No. 2001 —
April 24, 2001
Page 4 of 19
date of issuance, payable on the interim payment date set forth in the Pricing Confirmation) and
computed upon the basis of a 360-day year consisting of twelve 30-day months, at a rate not to
exceed twelve percent (12%) per annum as determined in the Pricing Confirmation and indicated
on the face of the Note (the "Note Rate"). If the Series of Bonds issued in connection with the
Note is secured in whole or in part by a Credit Instrument or such Credit Instrument (other than
the Reserve Fund) secures the Note in whole or in part and all principal of and interest on the
Note is not paid in full at maturity or if payment of principal of and/or interest on the Note is
paid (in whole or in part) by a draw under, payment by or claim upon a Credit Instrument which
draw, payment or claim is not fully reimbursed on such date, such Note shall become a Defaulted
Note (as defined in the Indenture), and the unpaid portion (including the interest component, if
applicable) thereof (or the portion (including the interest component, if applicable) thereof with
respect to which a Credit Instrument applies for which reimbursement on a draw, payment or
claim has not been fully made) shall be deemed outstanding and shall continue to bear interest
thereafter until paid at the Default Rate (as defined in the Indenture). If the Credit Instrument is
the Reserve Fund and the Reserve Bonds issued to fund the Reserve Fund are secured by the
Reserve Credit Instrument and a Drawing (as defined in the Indenture) pertaining to the Note is
not fully reimbursed by the Reserve Principal Payment Date (as defined in the Indenture), such
Note shall become a Defaulted Reserve Note (as defined in the Indenture), and the unpaid
portion (including the interest component, if applicable) thereof (or portion (including the
interest component, if applicable) with respect to which the Reserve Fund applies for which
reimbursement on a Drawing has not been fully made) shall be deemed outstanding and shall
continue to bear interest thereafter until paid at the Default Rate. If the Note or the Series of
Bonds issued in connection with the Note is unsecured in whole or in part and the Note is not
fully paid at maturity, the unpaid portion thereof (or the portion thereof to which no Credit
Instrument applies which is unpaid) shall be deemed outstanding and shall continue to bear
interest thereafter until paid at the Default Rate. In each case set forth in the preceding three
sentences, the obligation of the Local Agency with respect to such Defaulted Note or unpaid
Note shall not be a debt or liability of the Local Agency prohibited by Article XVI, Section 18 of
the California Constitution and the Local Agency shall not be liable thereon except to the extent
of any available revenues attributable to Fiscal Year 2001-2002, as provided in Section 8 hereof.
The percentage of the Note to which a Credit Instrument, if any, applies (the "Secured
Percentage") shall be equal to the amount of the Credit Instrument divided by the aggregate
amount of unpaid principal of and interest on the unpaid notes (or portions thereof) of all Issuers,
expressed as a percentage (but not greater than 100%) as of the maturity date. The percentage of
the Note to which the Reserve Credit Instrument, if any, applies (the "Secured Reserve
Percentage") shall be equal to the amount of the Reserve Credit Instrument divided by the
aggregate amount of unpaid principal of and interest on such unpaid notes (or portions thereof,
including the interest component, if applicable), expressed as a percentage (but not greater than
100%) as of the Reserve Principal Payment Date.
Both the principal of and interest on the Note shall be payable in lawful money of
the United States of America. The principal of and interest on the Note at maturity shall be paid
upon surrender of the Note at the corporate trust office of Wells Fargo Bank, National
Association in Los Angeles, California.
Resolution No. 2001 —
April 24, 2001
Page 5of19
The Note shall be issued in conjunction with the note or notes of one or more other
Issuers as part of the Program and within the meaning of Section 53853 of the Act.
Section 3. Form of Note. The Note shall be issued in fully registered form
without coupons and shall be substantially in the form and substance set forth in Exhibit "A" as
attached hereto and by reference incorporated herein, the blanks in said forms to be filled in with
appropriate words and figures.
Section 4. Sale of Note. Delegation. The Note shall be sold to the Authority
pursuant to the Purchase Agreement. The form of the Purchase Agreement, including the form
of the pricing confirmation supplement (the "Pricing Confirmation") set forth as Exhibit "A"
thereto, presented to this meeting are hereby approved. The authorized representatives set forth
in Section 25 hereof (the "Authorized Representatives") are each hereby authorized and directed
to execute and deliver the Purchase Agreement in substantially said form, with such changes
thereto as such Authorized Representative shall approve, such approval to be conclusively
evidenced by his or her execution and delivery thereof, provided, however, that the Purchase
Agreement shall not be effective and binding on the Local Agency until the execution and
delivery of the Pricing Confirmation. The Authorized Representatives are each hereby further
authorized and directed to execute and deliver the Pricing Confirmation in substantially said
form, with such changes thereto as such Authorized Representative shall approve, such approval
to be conclusively evidenced by his or her execution and delivery thereof provided, however,
that the interest rate on the Note shall not exceed twelve percent (12%) per annum, the discount
on the Note, when added to the Local Agency's share of the costs of issuance of the Bonds, shall
not exceed one percent (1.0%), and the Principal Amount shall not exceed the Maximum
Amount of Borrowing. Delivery of an executed copy of the Pricing Confirmation by fax or
telecopy shall be deemed effective execution and delivery for all purposes.
Section 5. Program Approval. The Pricing Confirmation shall indicate
whether and what type of Credit Instrument and, if applicable, Reserve Credit Instrument will
apply.
The forms of Indenture, alternative general types and forms of Credit Agreements,
if any, and alternative general types and forms of Reserve Credit Agreements, if any, presented
to this meeting are hereby acknowledged, and it is acknowledged that the Authority will execute
and deliver the Indenture, one or more Credit Agreements, if applicable, and one or more
Reserve Credit Agreements, if applicable, which shall be identified in the Pricing Confirmation,
in substantially one or more of said forms with such changes therein as the Authorized
Representative who executes the Pricing Confirmation shall require or approve (substantially
final forms of the Indenture, the Credit Agreement and, if applicable, the Reserve Credit
Agreement are to be delivered to the Authorized Representative concurrent with the Pricing
Confirmation), such approval of the Authorized Representative and this legislative Body to be
conclusively evidenced by the execution of the Pricing Confirmation. If the Credit Agreement
identified in the Pricing Confirmation is the Reserve Indenture, it is acknowledged that the
Authority will issue the Reserve Bonds pursuant to and as provided in the Reserve Indenture as
finally executed.
Resolution No. 2001 —
April 24, 2001
Page 6 of 19
Any one of the Authorized Representatives of the Local Agency is hereby
authorized and directed to provide the Financial Advisor or the underwriter with such
information relating to the Local Agency as the Financial Advisor or the underwriter shall
reasonably request for inclusion in the Preliminary Official Statement and Official Statement of
the Authority. Upon inclusion of the information relating to the Local Agency therein, the
Preliminary Official Statement and Official Statement or such other offering document is, except
for certain omissions permitted by Rule 15c2-12 of the Securities Exchange Act of 1934, as
amended (the "Rule"), hereby deemed final within the meaning of the Rule with respect to the
Local Agency and any Authorized Representative of the Local Agency is authorized to execute a
certificate to such effect. If, at any time prior to the end of the underwriting period, as defined in
the Rule, any event occurs as a result of which the information contained in the Preliminary
Official Statement or other offering document relating to the Local Agency might include an
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading.
the Local Agency shall promptly notify the Financial Advisor and the underwriter.
Subject to Section 8 hereof, the Local Agency hereby agrees that if the Note shall
become a Defaulted Note, the unpaid portion (including the interest component, if applicable)
thereof or the portion (including the interest component, if applicable) to which a Credit
Instrument applies for which full reimbursement on a draw, payment or claim has not been made
by the Maturity Date shall be deemed outstanding and shall not be deemed to be paid until (i)
any Credit Provider providing a Credit Instrument with respect to the Note or the Series of Bonds
issued in connection with the Note, has been reimbursed for any drawings, payments or claims
made under or from the Credit Instrument with respect to the Note, including interest accrued
thereon, as provided therein and in the applicable Credit Agreement, and, (ii) the holders of the
Note, or Series of the Bonds issued in connection with the Note, are paid the full principal
amount represented by the unsecured portion of the Note plus interest accrued thereon
(calculated at the Default Rate) to the date of deposit of such aggregate required amount with the
Trustee. For purposes of clause (ii) of the preceding sentence, holders of the Series of Bonds will
be deemed to have received such principal amount upon deposit of such moneys with the
Trustee.
Subject to Section 8 hereof, the Local Agency hereby agrees that if the Note shall
become a Defaulted Reserve Note, the unpaid portion (including the interest component, if
applicable) thereof or the portion (including the interest component, if applicable) to which a
Reserve Credit Instrument, if any, applies for which full reimbursement on a Drawing has not
been made by the Reserve Principal Payment Date shall be deemed outstanding and shall not be
deemed paid until (i) any Reserve Credit Provider providing a Reserve Credit Instrument with
respect to the Reserve Bonds (against the Reserve Fund of which such Drawing was made) has
been reimbursed for any Drawing or payment made under the Reserve Credit Instrument with
respect to the Note, including interest accrued thereon, as provided therein and in the Reserve
Credit Agreement, and (ii) the holders of the Note, or Series of Bonds issued in connection with
the Note, are paid the full principal amount represented by the unsecured portion of the Note plus
interest accrued thereon (calculated at the Default Rate) to the date of deposit of such aggregate
Resolution No. 2001 —
April 24, 2001
Page 7 of 19
required amount with the Trustee. For the purposes of clause (ii) of the preceding sentence,
holders of the Series of Bonds will be deemed to have received such principal amount upon
deposit of such moneys with the Trustee.
The Local Agency agrees to pay or cause to be paid, in addition to the amounts
payable under the Note, any fees or expenses of the Trustee and, to the extent permitted by law,
if the Local Agency's Note is secured in whole or in part by a Credit Instrument and, if
applicable, a Reserve Credit Instrument (by virtue of the fact that the Series of Bonds is secured
by a Credit Instrument and, if applicable, Reserve Bonds are secured by a Reserve Credit
Instrument), any Predefault Obligations and Reimbursement Obligations (to the extent not
payable under the Note), (i) arising out of an "Event of Default" hereunder (or pursuant to
Section 7 hereof) or (ii) arising out of any other event (other than an event arising solely as a
result of or otherwise attributable to a default by any other Issuer). In the case described in (ii)
above with respect to Predefault Obligations, the Local Agency shall owe only the percentage of
such fees, expenses and Predefault Obligations equal to the ratio of the principal amount of its
Note over the aggregate principal amounts of all notes, including the Note, of the Series of which
the Note is a part, at the time of original issuance of such Series. Such additional amounts will
be paid by the Local Agency within twenty-five (25) days of receipt by the Local Agency of a
bill therefore from the Trustee.
Section 6. No Joint Obligation. The Note will be issued in conjunction with a
note or notes of one or more other Issuers, assigned to secure a Series of Bonds. In all cases, the
obligation of the Local Agency to make payments on or in respect to its Note is a several and not
a joint obligation and is strictly limited to the Local Agency's repayment obligation under this
Resolution and the Note.
Section 7. Disposition of Proceeds of Note. A portion of the moneys received
from the sale of the Note in an amount equal to the Local Agency's share of the costs of issuance
(which shall include any fees and expenses) in connection with any Credit Instrument (and the
Reserve Credit Instrument, if any) applicable to the Note or Series of Bonds (and the
corresponding Reserve Bonds, if any) shall be deposited in the Costs of Issuance Fund held and
invested by the Trustee under the Indenture and expended as directed by the Authority on costs
of issuance as provided in the Indenture. The balance of the moneys received from the sale of the
Note to the Authority shall be deposited in the Local Agency's Proceeds Subaccount hereby
authorized to be created pursuant to, and held and invested by the Trustee under, the Indenture
for the Local Agency and said moneys may be used and expended by the Local Agency for any
purpose for which it is authorized to use and expend moneys, upon requisition from the Proceeds
Subaccount as specified in the Indenture. Amounts in the Proceeds Subaccount are hereby
pledged to the payment of the Note. The Trustee will not create subaccounts within the Proceeds
Fund, but will keep records to account separately for proceeds of the Bonds allocable to the
Local Agency's Note on deposit in the Proceeds Fund, which shall constitute the Local Agency's
Proceeds Subaccount.
Resolution No. 2001 —
April 24, 2001
Page 8 of 19
Section 8. Source of Payment.
(A) The principal amount of the Note, together with the interest thereon, shall be
payable from taxes, income, revenue (including, but not limited to, revenue from the state and
federal governments), cash receipts and other moneys which are received by the Local Agency
for the general fund of. the Local Agency and are attributable to Fiscal Year 2001-2002 and
which are available for payment thereof. As security for the payment of the principal of and
interest on the Note, the Local Agency hereby pledges certain unrestricted revenues (as
hereinafter provided, the "Pledged Revenues") which are received by the Local Agency for the
general fund of the Local Agency and are attributable to Fiscal Year 2001-2002, and the
principal of the Note and the interest thereon shall constitute a first lien and charge thereon and
shall be payable from the first moneys received by the Local Agency from such Pledged
Revenues, and, to the extent not so paid, shall be paid from any other taxes, income, revenue,
cash receipts and other moneys of the Local Agency lawfully available therefore (all as provided
for in Sections 53856 and 53857 of the Act). The term "unrestricted revenues" shall mean all
taxes, income, revenue (including, but not limited to, revenue from the state and federal
governments), cash receipts, 'and other moneys, intended as receipts for the general find of the
Local Agency attributable to Fiscal Year 2001-2002 and which are generally available for the
payment of current expenses and other obligations of the Local Agency. The Noteholders,
Bondholders, Credit Provider and, if applicable, the Reserve Credit Provider shall have a first
lien and charge on such certain unrestricted revenues as hereinafter provided which are received
by the Local Agency and are attributable to Fiscal Year 2001-2002.
In order to effect the pledge referenced in the preceding paragraph, the Local
Agency hereby agrees and covenants to establish and maintain a special account within the Local
Agency's general find to be designated the "2001 Tax and Revenue Anticipation Note Payment
Account" (the "Payment Account") and further agrees and covenants to maintain the Payment
Account until the payment of the principal of the Note and the interest thereon. Notwithstanding
the foregoing, if the Local Agency elects to have Note proceeds invested in Permitted
Investments to be held by the Trustee pursuant to the Pricing Confirmation, a subaccount of the
Payment Account (the "Payment Subaccount") shall be established for the Local Agency under
the Indenture and proceeds credited to such account shall be pledged to the payment of the Note.
The Trustee need not create a subaccount, but may keep a record to account separately for
proceeds of the Note so held and invested by the Trustee which record shall constitute the Local
Agency's Proceeds Subaccount. Transfers from the Payment Subaccount shall be made in
accordance with the Indenture. The Local Agency agrees to transfer to and deposit in the
Payment Account the first amounts received in the months specified in the Pricing Confirmation
as Repayment Months (each individual month a "Repayment Month" and collectively
"Repayment Months"; and any amounts received thereafter attributable to Fiscal Year 2001-
2002) until the amount on deposit in the Payment Account, together with the amount, if any, on
deposit in the Payment Subaccount, and taking into consideration anticipated investment
earnings thereon to be received by the Maturity Date, is equal in the respective Repayment
Months identified in the Pricing Confirmation to the percentage of the principal and interest due
on the Note specified in the Pricing Confirmation. In making such transfer and deposit, the Local
Agency shall not be required to physically segregate the amounts to be transferred to and
Resolution No. 2001 —
April 24, 2001
Page 9 of 19
deposited in the Payment Account from the Local Agency's other general fund moneys, but,
notwithstanding any commingling of funds for investment or other purposes, the amounts
required to be transferred to and deposited in the Payment Account shall nevertheless be subject
to the lien and charge created herein.
Any one of the Authorized Representatives of the Local Agency is hereby
authorized to approve the determination of the Repayment Months and percentages of the
principal and interest due on the Note required to be on deposit in the Payment Account and/or
the Payment Subaccount in each Repayment Month, all as specified in the Pricing Confirmation,
by executing and delivering the Pricing Confirmation, such execution and delivery to be
conclusive evidence of approval by this Legislative Body and such Authorized Representative;
provided, however, that the maximum number of Repayment Months shall be six and the
maximum amount of Pledged Revenues required to be deposited in each Repayment Month shall
not exceed fifty percent (50%) of the aggregate principal and interest due on the Note. In the
event on the day in each such Repayment Month that a deposit to the Payment Account is
required to be made, the Local Agency has not received sufficient unrestricted revenues to
permit the deposit into the Payment Account of the full amount of Pledged Revenues to be
deposited in the Payment Account from said unrestricted revenues in said month, then the
amount of any deficiency shall be satisfied and made up from any other moneys of the Local
Agency lawfully available for the payment of the principal of the Note and the interest thereon,
as and when such other moneys are received or are otherwise legally available.
(B) Any moneys placed in the Payment Account or the Payment Subaccount shall
be for the benefit of (i) the holder of the Note and the holders of Bonds issued in connection with
the Notes, (ii) (to the extent provided in the Indenture) the Credit Provider, if any, and (iii) (to
the extent provided in the Indenture and, if applicable, the Credit Agreement) the Reserve Credit
Provider, if any. The moneys in the Payment Account and the Payment Subaccount shall be
applied only for the purposes for which such Accounts are created until the principal of the Note
and all interest thereon are paid or until provision has been made for the payment of the principal
of the Note at maturity with interest to maturity (in accordance with the requirements for
defeasance of the Bonds as set forth in the Indenture) and, if applicable, (to the extent provided
in the Indenture and, if applicable, the Credit Agreement) the payment of all Predefault
Obligations and Reimbursement Obligations owing to the Credit Provider and, if applicable, the
Reserve Credit Provider.
(C) The Local Agency hereby directs the Trustee to transfer on the Note
Payment Deposit Date (as defined in the Indenture), any moneys in the Payment Subaccount to
the Bond Payment Fund (as defined in the Indenture). In addition, on the Note Payment Deposit
Date, the moneys in the Payment Account shall be transferred by the Local Agency to the
Trustee, to the extent necessary (after crediting any transfer pursuant to the preceding sentence),
to pay the principal of and/or interest on the Note or to reimburse the Credit Provider for
payments made under or pursuant to the Credit Instrument. In the event that moneys in the
Payment Account and/or the Payment Subaccount are insufficient to pay the principal of and
interest on the Note in full when due, such moneys shall be applied in the following priority:
first to pay interest on the Note; second to pay principal of the Note; third to reimburse the Credit
Resolution No. 2001 —
April 24, 2001
Page 10 of 19
Provider for payment, if any, of interest with respect to the Note; fourth to reimburse the Credit
Provider for payment, if any, of principal with respect to the Note; fifth to reimburse the Reserve
Credit Provider, if any, for payment, if any, of interest with respect to the Note; sixth to
reimburse the Reserve Credit Provider, if any, for payment, if any, of principal with respect to
the Note; and seventh to pay any Reimbursement Obligations of the Local Agency and any of the
Local Agency's pro rata share of Predefault Obligations owing to the Credit Provider and
Reserve Credit Provider (if any) as applicable. Any moneys remaining in or accruing to the
Payment Account and/or the Payment Subaccount after the principal of the Note and the interest
thereon and any Predefault Obligations and Reimbursement Obligations, if applicable, have been
paid, or provision for such payment has been made, shall be transferred to the general find of the
Local Agency, subject to any other disposition required by the Indenture, or, if applicable, the
Credit Agreement. Nothing herein shall be deemed to relieve the Local Agency from its
obligation to pay its Note in full on the Maturity Date.
(D) Moneys in the Proceeds Subaccount and in the Payment Subaccount shall
be invested by the Trustee pursuant to the Indenture as directed by the Local Agency in
Permitted Investments as described in and under the terms of the Indenture. Any such
investment by the Trustee shall be for the account and risk of the Local Agency, and the Local
Agency shall not be deemed to be relieved of any of its obligations with respect to the Note, the
Predefault Obligations or Reimbursement Obligations, if any, by reason of such investment of
the moneys in its Proceeds Subaccount or the Payment Subaccount.
(E) At the written request of the Credit Provider, if any, or the Reserve Credit
Provider, if any, the Local Agency shall, within ten (10) Business Days following the receipt of
such written request, file such report or reports to evidence the transfer to and deposit in the
Payment Account required by this Section 8 and provide such additional financial information as
may be required by the Credit Provider, if any, or the Reserve Credit Provider, if any.
Section 9. Execution of Note. Any one of the Authorized Representatives of
the Local Agency or any other officer designated by the Legislative Body shall be authorized to
execute the Note by manual or facsimile signature and the Secretary or Clerk of the Legislative
Body of the Local Agency, or any duly appointed assistant thereto, shall be authorized to
countersign the Note by manual or facsimile signature. Said Authorized Representative of the
Local Agency, is hereby authorized to cause the blank spaces of the Note to be filled in as may
be appropriate pursuant to the Pricing Confirmation. The Authorized Representative is hereby
authorized and directed to cause the Authority to assign the Note to the Trustee, pursuant to the
terms and conditions of the Purchase Agreement, this Resolution and the Indenture. In case any
Authorized Representative whose signature shall appear on any Note shall cease to be an
Authorized Representative before the delivery of such Note, such signature shall nevertheless be
valid and sufficient for all purposes, the same as if such officer had remained in office until
delivery. The Note need not bear the seal of the Local Agency, if any.
Section 10. Intentionally Left Blank. This section has been included to
preserve the sequence of section numbers for cross-referencing purposes.
Resolution No. 2001 —
April 24, 2001
Page 11 of 19
Section 11. Representations and Covenants of the Local Agency.
The Local Agency makes the following representations for the benefit of the
holder of the Note, the owners of the Bonds, the Credit Provider, if any, and the Reserve Credit
Provider, if any:
(A) The Local Agency is duly organized and existing under and by virtue of the
laws of the State of California and has all necessary power and authority to (i) adopt this
Resolution and perform its obligations thereunder, (ii) enter into and perform its obligations
under the Purchase Agreement, and (iii) issue the Note and perform its obligations thereunder.
(B) (i) Upon the issuance of the Note, the Local Agency shall have taken all
action required to be taken by it to authorize the issuance and delivery of the Note and the
performance of its obligations thereunder, and (ii) the Local Agency has hill legal right, power
and authority to issue and deliver the Note.
(C) The issuance of the Note, the adoption of the Resolution and the execution
and delivery of the Purchase Agreement, and compliance with the provisions hereof and thereof
do not conflict with, breach or violate any law, administrative regulation, court decree,
resolution, charter, by-laws or other agreement to which the Local Agency is subject or by which
it is bound.
(D) Except as may be required under blue sky or other securities laws of any
state or Section 3(a)(2) of the Securities Act of 1933, there is no consent, approval, authorization
or other order of, or filing with, or certification by, any regulatory authority having jurisdiction
over the Local Agency required for the issuance and sale of the Note or the consummation by the
Local Agency of the other transactions contemplated by this Resolution, except those the Local
Agency shall obtain or perform prior to or upon the issuance of the Note.
(E) The Local Agency has (or will have prior to the issuance of the Note) duly,
regularly and properly adopted a preliminary budget for Fiscal Year 2001-2002 setting forth
expected revenues and expenditures and has complied with all statutory and regulatory
requirements with respect to the adoption of such budget. The Local Agency hereby covenants
that it shall (i) duly, regularly and properly prepare and adopt its final budget for Fiscal Year
2001-2002, (ii) provide to the Trustee, the Credit Provider, if any, the Reserve Credit Provider, if
any, and the Financial Advisor and the underwriter, promptly upon adoption, copies of such final
budget and of any subsequent revisions, modifications or amendments thereto and (iii) comply
with all applicable laws pertaining to its budget.
(F) The sum of the principal amount of the Local Agency's Note plus the
interest payable thereon, on the date of its issuance, shall not exceed fifty percent (50%) of the
estimated amounts of the Local Agency's uncollected taxes, income, revenue (including, but not
limited to, revenue from the state and federal governments), cash receipts, and other moneys to
Resolution No. 2001 —
April 24, 2001
Page 12 of 19
be received by the Local Agency for the general fund of the Local Agency attributable to Fiscal
Year 2001-2002, all of which will be legally available to pay principal of and interest on the
Note.
(G) The Local Agency (i) has not defaulted within the past twenty (20) years,
and is not currently in default, on any debt obligation and (ii), to the best knowledge of the Local
Agency, has never defaulted on any debt obligation.
(H) The Local Agency's most recent audited financial statements present fairly
the financial condition of the Local Agency as of the date thereof and the results of operation for
the period covered thereby. Except as has been disclosed to the Financial Advisor and the
underwriter, the Credit Provider, if any, and the Reserve Credit Provider, if any, there has been
no change in the financial condition of the Local Agency since the date of such audited financial
statements that will in the reasonable opinion of the Local Agency materially impair its ability to
perform its obligations under this Resolution and the Note. The Local Agency agrees to furnish
to the Authority, the Financial Advisor, the underwriter, the Trustee, the Credit Provider, if any,
and the Reserve Credit Provider, if any, promptly, from time to time, such information regarding
the operations, financial condition and property of the Local Agency as such party may
reasonably request.
(I) There is no action, suit, proceeding, inquiry or investigation, at law or in
equity, before or by any court, arbitrator, governmental or other board, body or official, pending
or, to the best knowledge of the Local Agency, threatened against or affecting the Local Agency
questioning the validity of any proceeding taken or to be taken by the Local Agency in
connection with the Note, the Purchase Agreement, the Indenture, the Credit Agreement, if any,
the Reserve Credit Agreement, if any, or this Resolution, or seeking to prohibit, restrain or enjoin
the execution, delivery or performance by the Local Agency of any of the foregoing, or wherein
an unfavorable decision, ruling or finding would have a materially adverse effect on the Local
Agency's financial condition or results of operations or on the ability of the Local Agency to
conduct its activities as presently conducted or as proposed or contemplated to be conducted, or
would materially adversely affect the validity or enforceability of, or the authority or ability of
the Local Agency to perform its obligations under, the Note, the Purchase Agreement, the
Indenture, the Credit Agreement, if any, the Reserve Credit Agreement, if any, or this
Resolution.
(J) Upon issuance of the Note and execution of the Purchase Contract, this
Resolution, the Purchase Contract and the Note will constitute legal, valid and binding
agreements of the Local Agency, enforceable in accordance with their respective terms, except
as such enforceability may be limited by bankruptcy or other laws affecting creditors' rights
generally, the application of equitable principles if equitable remedies are sought, the exercise of
judicial discretion in appropriate eases and the limitations on legal remedies against local
agencies, as applicable, in the State of California.
Resolution No. 2001 —
April 24, 2001
Page 13 of 19
(K) The Local Agency and its appropriate officials have duly taken, or will
take, all proceedings necessary to be taken by them, if any, for the levy, receipt, collection and
enforcement of the Pledged Revenues in accordance with law for carrying out the provisions of
this Resolution and the Note.
(L) The Local Agency shall not incur any indebtedness secured by a pledge of
its Pledged Revenues unless such pledge is subordinate in all respects to the pledge of Pledged
Revenues hereunder.
(M) So long as the Credit Provider, if any, is not in payment default under the
Credit Instrument or the Reserve Credit Provider, if any, is not in default under the
corresponding Reserve Credit Agreement, the Local Agency hereby agrees to pay its pro rata
share of all Predefault Obligations and all Reimbursement Obligations attributable to the Local
Agency in accordance with provisions of the Credit Agreement, if any, the Reserve Credit
Agreement, if any, and/or the Indenture, as applicable. Prior to the Maturity Date, moneys in the
Local Agency's Payment Account and/or Payment Subaccount shall not be used to make such
payments. The Local Agency shall pay such amounts promptly upon receipt of notice from the
Credit Provider or from the Reserve Credit Provider, if applicable, that such amounts are due to
it.
(N) So long as any Bonds issued in connection with the Notes are Outstanding,
or any Predefault Obligation or Reimbursement Obligation is outstanding, the Local Agency will
not create or suffer to be created any pledge of or lien on the Note other than the pledge and lien
of the Indenture.
Section 12. Tax Covenants. (A) The Local Agency shall not take any action or
fail to take any action if such action or failure to take such action would adversely affect the
exclusion from gross income of the interest payable on the Note or Bonds under Section 103 of
the Internal Revenue Code of 1986 (the "Code"). Without limiting the generality of the
foregoing, the Local Agency shall not make any use of the proceeds of the Note or Bonds or any
other funds of the Local Agency which would cause the Note or Bonds to be an "arbitrage bond"
within the meaning of Section 148 of the Code, a "private activity bond" within the meaning of
Section 141(a) of the Code, or an obligation the interest on which is subject to federal income
taxation because it is "federally guaranteed" as provided in Section 149(b) of the Code. The
Local Agency, with respect to the proceeds of the Note, will comply with all requirements of
such sections of the Code and all regulations of the United States Department of the Treasury
issued or applicable thereunder to the extent that such requirements are, at the time, applicable
and in effect.
(B) The Local Agency hereby (i) represents that the aggregate face amount of
all tax-exempt obligations (including any tax-exempt leases, but excluding private activity
bonds), issued and to be issued by the Local Agency during calendar year 2001, including the
Note, is not reasonably expected to exceed $5,000,000; or. in the alternative (ii) covenants that
the Local Agency will take all legally permissible steps necessary to ensure that all of the gross
Resolution No. 2001 —
April 24, 2001
Page 14 of 19
proceeds of the Note will be expended no later than the day that is six months after the date of
issuance of the Note so as to satisfy the requirements of Section 148(f)(4)(B) of the Code.
(C) Notwithstanding any other provision of this Resolution to the contrary,
upon the Local Agency's failure to observe, or refusal to comply with, the covenants contained
in this Section 12, no one other than the holders or former holders of the Note, the owners of the
Bond, the Credit Provider, if any, the Reserve Credit Provider, if any, or the Trustee on their
behalf shall be entitled to exercise any right or remedy under this Resolution on the basis of the
Local Agency's failure to observe, or refusal to comply with, such covenants.
Note.
(D) The covenants contained in this Section 12 shall survive the payment of the
Section 13. Events of Default and Remedies.
If any of the following events occurs, it is hereby defined as and declared to be and
to constitute an "Event of Default":
(A) Failure by the Local Agency to make or cause to be made the transfers and
deposits to the Payment Account, or any other payment required to be paid hereunder, including
payment of principal and interest on the Note, on or before the date on which such transfer,
deposit or other payment is due and payable;
(B) Failure by the Local Agency to observe and perform any covenant,
condition or agreement on its part to be observed or performed under this Resolution, for a
period of fifteen (15) days after written notice, specifying such failure and requesting that it be
remedied, is given to the Local Agency by the Trustee, the Credit Provider, if applicable, or the
Reserve Credit Provider, if applicable, unless the Trustee and the Credit Provider or the Reserve
Credit Provider, if applicable, shall all agree in writing to an extension of such time prior to its
expiration
(C) Any warranty, representation or other statement by or on behalf of the
Local Agency contained in this Resolution or the Purchase Agreement (including the Pricing
Confirmation) or in any requisition or any financial report delivered by the Local Agency or in
any instrument furnished in compliance with or in reference to this Resolution or the Purchase
Agreement or in connection with the Note, is false or misleading in any material respect;
(D) A petition is filed against the Local Agency under any bankruptcy,
reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of
any jurisdiction, whether now or hereafter in effect and is not dismissed within 30 days after
such filing, but the Trustee shall have the right to intervene in the proceedings prior to the
expiration of such thirty (30) days to protect its and the Bond Owners' (or Noteholders')
interests;
Resolution No. 2001 —
April 24, 2001
Page 15 of 19
(E) The Local Agency files a petition in voluntary bankruptcy or seeking relief
under any provision of any bankruptcy, reorganization, arrangement, insolvency, readjustment of
debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, or
consents to the filing of any petition against it under such law; or
(F) The Local Agency admits insolvency or bankruptcy or is generally not
paying its debts as such debts become due, or becomes insolvent or bankrupt or makes an
assignment for the benefit of creditors, or a custodian (including without limitation a receiver,
liquidator or trustee) of the Local Agency or any of its property is appointed by court order or
takes possession thereof and such order remains in effect or such possession continues for more
than 30 days, but the Trustee shall have the right to intervene in the proceedings prior to the
expiration of such thirty (30) days to protect its and the Bond Owners' or Noteholders' interests.
Whenever any Event of Default referred to in this Section 13 shall have happened
and be continuing, the Trustee, as holder of the Note, shall, in addition to any other remedies
provided herein or by law or under the Indenture, if applicable, have the right, at its option
without any further demand or notice, to take one or any combination of the following remedial
steps:
(1) Without declaring the Note to be immediately due and payable, require the
Local Agency to pay to the Trustee, as holder of the Note, an amount equal to the principal of the
Note and interest thereon to maturity, plus all other amounts due hereunder, and upon notice to
the Local Agency the same shall become immediately due and payable by the Local Agency
without further notice or demand; and
(2) Take whatever other action at law or in equity (except for acceleration of
payment on the Note) which may appear necessary or desirable to collect the amounts then due
and thereafter to become due hereunder and under the Note or to enforce any other of its rights
hereunder.
Notwithstanding the foregoing, if the Local Agency's Note is secured in whole or
in part by a Credit Instrument (other than the Reserve Fund) or if the Credit Provider is
subrogated to rights under the Local Agency's Note, as long as the Credit Provider has not failed
to comply with its payment obligations under the Credit Instrument, the Credit Provider shall
have the right to direct the remedies upon any Event of Default hereunder, and, not withstanding
the foregoing, if a Reserve Credit Instrument is applicable, as long as the Reserve Credit
Provider has not failed to comply with its payment obligations under the Reserve Credit
Agreement, the Reserve Credit Provider shall have the right (prior to the Credit Provider) to
direct the remedies upon any Event of Default hereunder, in each case so long as such action will
not materially adversely affect the rights of any Bond Owner, and the Credit Provider's and
Reserve Credit Provider's (if any) prior consent shall be required to any remedial action
proposed to be taken by the Trustee hereunder.
Resolution No. 2001 —
April 24, 2001
Page 16 of 19
If the Credit Provider is not reimbursed for any drawing, payment or claim, as
applicable, used to pay principal of and interest on the Note due to a default in payment on the
Note by the Local Agency, or if any principal of or interest on the Note remains unpaid after the
Maturity Date, the Note shall be a Defaulted Note, the unpaid portion (including the interest
component, if applicable) thereof or the portion (including the interest component, if applicable)
to which a Credit Instrument applies for which reimbursement on a draw, payment or claim has
not beenmade shall be deemed outstanding and shall bear interest at the Default Rate until the
Local Agency's obligation on the Defaulted Note is paid in full or payment is duly provided for,
all subject to Section 8 hereof.
If the Credit Instrument is the Reserve Fund and the Reserve Bonds are secured by
the Reserve Credit Instrument and all principal of and interest on the Note is not paid in full by
the Reserve Principal Payment Date, the Defaulted Note shall become a Defaulted Reserve Note
and the unpaid portion (including the interest component if applicable) thereof (or the portion
thereof with respect to which the Reserve Fund applies for which reimbursement on a Drawing
has not been fully made) shall be deemed outstanding and shall bear interest at the Default Rate
until the Local Agency's obligation on the Defaulted Reserve Note is paid in full or payment is
duly provided for, all subject to Section 8 hereof
Section 14. Trustee. The Local Agency hereby directs and authorizes the
payment by the Trustee of the interest on and principal of the Note when such become due and
payable, from amounts received by the Trustee from the Local Agency in the manner set forth
herein. The Local Agency hereby covenants to deposit funds in such account or fund, as
applicable, at the time and in the amount specified herein to provide sufficient moneys to pay the
principal of and interest on the Note on the Note Payment Deposit Date. Payment of the Note
shall be in accordance with the terms of the Note and this Resolution.
Section 15. Sale of Note. The Note shall be sold to the Authority, in
accordance with the terms of the Purchase Agreement, hereinbefore approved, and issued
payable to the Trustee, as assignee of the Authority.
Section 16. Intentionally Left Blank. This section has been included to
preserve the sequence of section numbers for cross-referencing purposes.
Section 17. Approval of Actions. The aforementioned Authorized Represent-
atives of the Local Agency are hereby authorized and directed to execute the Note and cause the
Trustee to accept delivery of the Note, pursuant to the terms and conditions of the Purchase
Agreement and the Indenture. All actions heretofore taken by the officers and agents of the Local
Agency or this Legislative Body with respect to the sale and issuance of the Note and
participation in the Program are hereby approved, confirmed and ratified and the Authorized
Representatives and agents of the Local Agency are hereby authorized and directed, for and in
the name and on behalf of the Local Agency, to do any and all things and take any and all actions
and execute any and all certificates, agreements and other documents which they, or any of them,
may deem necessary or advisable in order to consummate the lawful issuance and delivery of the
Resolution No. 2001 —
April 24, 2001
Page 17 of 19
Note in accordance with, and related transactions contemplated by, this Resolution. The
Authorized Representatives of the Local Agency referred to above in Section 4 hereof are hereby
designated as "Authorized Local Agency Representatives" under the Indenture.
In the event that the Note or a portion thereof is secured by a Credit Instrument,
any one of the Authorized Representatives of the Local Agency is hereby authorized and directed
to provide the Credit Provider and, if applicable, the Reserve Credit Provider, with any and all
information relating to the Local Agency as such Credit Provider or Reserve Credit Provider may
reasonably request.
Section 18. Proceedings Constitute Contract. The provisions of the Note and
of this Resolution shall constitute a contract between the Local Agency and the registered owner
of the Note, and such provisions shall be enforceable by mandamus or any other appropriate suit,
action or proceeding at law or in equity in any court of competent jurisdiction, and shall be
irrepealable. The Credit Provider, if any, and the Reserve Credit Provider, if any, are third party
beneficiaries of the provisions of this Resolution and the Note.
Section 19. Limited Liability. Notwithstanding anything to the contrary
contained herein or in the Note or in any other document mentioned herein or related to the Note
or to any Series of Bonds to which the Note may be assigned, the Local Agency shall not have
any liability hereunder or by reason hereof or in connection with the transactions contemplated
hereby except to the extent payable from moneys available therefore as set forth in Section 8
hereof.
Section 20. Amendments. At any time or from time to time, the Local Agency
may adopt one or more Supplemental Resolutions with the written consents of the Authority, the
Credit Provider, if any, and the Reserve Credit Provider, if any, but without the necessity for
consent of the owner of the Note or of the Bonds issued in connection with the Note for any one
or more of the following purposes:
(A) to add to the covenants and agreements of the Local Agency in this
Resolution, other covenants and agreements to be observed by the Local Agency which are not
contrary to or inconsistent with this Resolution as theretofore in effect;
(B) to add to the limitations and restrictions in this Resolution, other limitations
and restrictions to be observed by the Local Agency which are not contrary to or inconsistent
with this Resolution as theretofore in effect;
(C) to confirm, as further assurance, any pledge under, and the subjection to
any lien or pledge created or to be created by, this Resolution, of any monies, securities or funds,
or to establish any additional funds or accounts to be held under this Resolution;
(D) to cure any ambiguity, supply any omission, or cure or correct any defect or
inconsistent provision in this Resolution; or
Resolution No. 2001 —
April 24, 2001
Page 18 of 19
(E) to amend or supplement this Resolution in any other respect;
provided, however, that any such Supplemental Resolution does not adversely affect the interests
of the owners of the Note or of the Bonds issued in connection with the Notes.
Any modifications or amendment of this Resolution and of the rights and
obligations of the Local Agency and of the owner of the Note or of the Bonds issued in
connection with the Note may be made by a Supplemental Resolution, with the written consents
of the Authority, the Credit Provider, if any, and the Reserve Credit Provider, if any, and with the
written consent of the owners of at least a majority in principal amount of the Note and of the
Bonds issued in connection with the Note outstanding at the time such consent is given;
provided, however, that if such modification or amendment will, by its terms, not take effect so
long as the Note or any Bonds issued in connection with the Note remain outstanding, the
consent of the owners of such Note or of such Bonds shall not be required. No such
modification or amendment shall permit a change in the maturity of the Note or a reduction of
the principal amount thereof or an extension of the tine of any payment thereon or a reduction of
the rate of interest thereon, or a change in the date or amounts of the pledge set forth in this
Resolution, without the consent of the owners of such Note or the owners of all the Bonds issued
in connection with the Note, or shall reduce the percentage of the Note or Bonds the consent of
the owners of which is required to effect any such modification or amendment, or shall change or
modify any of the rights or obligations of the Trustee without its written assent thereto.
Section 21. Severability. In the event any provision of this Resolution shall be
held invalid or unenforceable by any court of competent jurisdiction, such holding shall not
invalidate or render_ unenforceable any other provision hereof.
Section 22. Appointment of Bond Counsel. The law firm of Orrick,
Herrington & Sutcliffe LLP, Los Angeles, California is hereby appointed as Bond Counsel for
the Program. The Local Agency acknowledges that Bond Counsel regularly performs legal
services for many private and public entities in connection with a wide variety of matters, and
that Bond Counsel has represented, is representing or may in the future represent other public
entities, underwriters, trustees, rating agencies, insurers, credit enhancement providers, lenders,
financial and other consultants who may have a role or interest in the proposed financing or that
may be involved with or adverse to Local Agency in this or some other matter. Given the special,
limited role of Bond Counsel described above the Local Agency acknowledges that no conflict
of interest exists or would exist, waives any conflict of interest that might appear to exist, and
consents to any and all such relationships.
Section 23. Appointment of Financial Advisor and Underwriter. Sutro & Co.
Incorporated, Los Angeles, California is hereby appointed as financial advisor for the Program.
Lehman Brothers Inc., together with such co -underwriters, if any, identified in the Purchase
Contract, is hereby appointed as underwriter for the Program.
Section 24. Effective Date. This Resolution shall take effect from and after its
date of adoption.
Resolution No. 2001 —
April 24, 2001
Page 19 of 19
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City does hereby authorize and approve the borrowing of funds for Fiscal Year 2001-
2002; the issuance and sale of a 2001-2002 Tax and Revenue Participation Note therefore; and
participation in the California Communities Cash Flow Financing Program.
PASSED and ADOPTED this 24th day of April, 2001.
George H. Waters, Mayor
Al'1'EST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney
EXHIBIT A
CITY OF NATIONAL CITY
2001 TAX AND REVENUE ANTICIPATION NOTE, [SERIES _j'
Date of
Interest Rate Maturity Date Original Issue
REGISTERED OWNER
PRINCIPAL AMOUNT: $1,500,000
FOR VALUE RECEIVED, the Local Agency designated above (the "Local
Agency"), acknowledges itself indebted to and promises to pay to the registered owner identified
above, or registered assigns, on the maturity date set forth above, the principal sum specified
above in lawful money of the United States of America, and to pay interest thereon [on
2002 and] at maturity at the rate of interest specified above (the "Note Rate").
Principal of and interest on this Note are payable in such coin or currency of the United States as
at the time of payment is legal tender for payment of private and public debts. Principal and
interest at maturity shall be paid upon surrender hereof at the principal corporate trust office of
Wells Fargo Bank, National Association in Los Angeles, California, or its successor in trust (the
"Trustee"). Interest shall be calculated on the basis of a 360-day year, consisting of twelve 30-
day months. Both the principal of and interest on this Note shall be payable only to the
registered owner hereof as the same shall fall due; provided, however, no interest shall be
payable for any period after maturity during which the holder hereof fails to properly present this
Note for payment. If the Local Agency fails to pay this Note when due or the Credit Provider (as
defined in the Resolution hereinafter described and in that certain Indenture of Trust, dated as of
1, 2001 (the "Indenture"), by and between the alifornia Statewide Communities
Development Authority and Wells Fargo Bank National Association, as trustee), if any, is not
reimbursed in full for the amount drawn on or paid pursuant to the Credit Instrument (as defined
in the Resolution and the Indenture) to pay all or a portion (including the interest component, if
applicable) of this Note on the date of such payment, this Note shall 1`iecome a Defaulted Note
(as defined in the Resolution and the Indenture and with the consequences set forth in the
Resolution and the Indenture, including, without limitation, that this Note as a Defaulted Note
(and any related reimbursement obligation with respect to a credit instrument) shall bear interest
at the Default Rate, as defined in the Indenture).
It is hereby certified, recited and declared that this Note represents the authorized
issue of the Note in the aggregate principal amount authorized, executed and delivered pursuant
to and by authority of certain resolutions of the Local Agency duly passed and adopted
heretofore, under and by authority of Article 7.6 (commencing with Section 53850) of Chapter 4,
Part 1, Division 2, Title 5 of the California Government Code (collectively, the "Resolution"), to
=f If more than one Series of Bonds is issued under the Program in Fiscal Year 2001-2002 and if the Note
ispooled with notes issued by other Issuers (as defined in the Resolution).
DOCSLA1373778. A 1
all of the provisions and limitations of which the owner of this Note, by acceptance hereof,
assents and agrees.
The principal of the Note, together with the interest thereon, shall be payable from
taxes, income, revenue, cash receipts and other moneys which are received by the Local Agency
for the general fund of the Local Agency and are attributable to Fiscal Year 2001-2002 and
which are available for payment thereof. As security for the payment of the principal of and
interest on the Note, the Local Agency has pledged the first amounts of unrestricted revenues of
the Local Agency received on the last day of and (and any amounts
received thereafter attributable to Fiscal Year 2001-2002) until the amount on deposit in the
Payment Account (as defined in the Resolution), together with available amounts, if any, on
deposit in the Payment Subaccount (as defined in the Resolution) in each such month, is equal to
the corresponding percentages of principal of and interest due on the Note as set forth in the
Pricing Confirmation (as defined in the Resolution) (such pledged amounts being hereinafter
called the "Pledged Revenues"), and the principal of the Note and the interest thereon shall
constitute a first lien and charge thereon and shall be payable from the Pledged Revenues, and to
the extent not so paid shall be paid from any other moneys of the Local Agency lawfully
available therefor as set forth in the Resolution. The full faith and credit of the Local Agency is
not pledged to the payment of the principal of or interest on this Note.
The Local Agency and the Trustee may deem and treat the registered owner
hereof as the absolute owner hereof for the purpose of receiving payment of or on account of
principal hereof and interest due hereon and for all other purposes, and the Local Agency and the
Trustee shall not be affected by any notice to the contrary.
DCc L us7sns.
A-2
It is hereby certified that all of the conditions, things and acts required to exist, to
have happened and to have been performed precedent to and in the issuance of this Note do exist,
have happened and have been performed in due time, form and manner as required by the
Constitution and statutes of the State of California and that the amount of this Note, together
with all other indebtedness of the Local Agency, does not exceed any limit prescribed by the
Constitution or statutes of the State of California.
IN WITNESS WHEREOF, the Legislative Body of the Local Agency has caused
this Note to be executed by the manual or facsimile signature of a duly Authorized i
Representative of the Local Agency and countersigned by the manual or facsimile signature of
the Secretary or Clerk of the Legislative Body as of the date of authentication set forth below.
Countersigned
By:
Title:
CITY OF NATIONAL CITY
By:
Title:
DOCSLA1.373778.
A-3
PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT (the "Purchase Agreement"), dated as of the
purchase date (the "Purchase Date") specified hi Exhibit A attached hereto and made a part hereof,
entered into by and between the signatory local agency designated hi Exhibit A (the "Local Agency')
and the California Statewide Communities Development Authority (the "Authority"), for the sale and
delivery of the principal amount specified in Exhibit A of the Local Agency's 2001 Tax and Revenue
Anticipation Note (the "Note') to be issued in conjunction with the notes of other Issuers (as hereinafter
defined) participating in the Program (as hereinafter defined), as determined in the Pricing Cnnfimmalion
(as hereinafter defined), pooled with notes of other Issuers and assigned to secure a series (the
"Series") of bonds (the `Bonds") designated in Exhibit A;
WITNF.SSETH:
WHEREAS, local agencies are authorized by Sections 53850 to 53858, both
inclusive, of the Government Code of the State of California (the "Act") (being Article 7.6, Chapter 4,
Part 1, Division 2, Title 5 of the Government Code) to borrow money by the issuance of temporary
notes;
WHEREAS, the legislative body of the Local Agency (the "Legislative Body") has
heretofore adopted its resolution finding that the Local Agency needs to borrow funds in its fiscal year
ending June 30, 2002 ("Fiscal Year 2001-2002") in the principal amount set forth in Exhibit A and that
it is necessary that said sum be borrowed at this time by the issuance of a note therefor in anticipation of
the receipt of taxes, income, revenue, cash receipts and other moneys to be received by the Local
Agency during or attributable to Fiscal Year 2001-2002;
WHEREAS, the Local Agency has adopted a resolution or resolutions (collectively or
singularly, as applicable, the "Resolution") authorizing the issuance and sale of the Note in the name and
on behalf of the Local Agency;
WHEREAS, the Local Agency has determined that it is in the best interests of the
Local Agency to participate in the California Communities Cash Flow Financing Program (the
"Program"), whereby participating local agencies (the "Issuers") will simultaneously issue tax and
revenue anticipation promissory notes for purchase by the Authority,
WHEREAS, under the Program, the Authority will form one or more pools of notes
(the "Pooled Notes") and assign each note to a particular pool (the "Pool") and sell a Series of Bonds
secured by each Pool pursuant to an indenture, dated as of July 1, 2001 (the "Indenture"), by and
between the Authority and Wells Fargo Bank, National Association (the `Trustee"), and sell each such
Series to Lehman Brothers Inc., as repiesentative of the underwriters of the Program (collectively, the
"Underwriter");
DOCSLA1:373955.
•
WHEREAS, if so indicated in Exhibit A, the payment by the Local Agency of its Note
will be secured in whole or in part (jointly, but not severally, with notes of the other participating Issuers
assigned to the same Series of Bonds) by a letter of credit, policy of insurance, proceeds received from
a separate bond issue issued by the Authority for such purpose (the "Reserve Fund") or other credit
instrument (collectively, the "Credit Instruments to be issued by the entity or entities designated in
Exhibit A as the credit provider (the "Credit Provider");
WHEREAS, such Credit Instrument may be issued pursuant to a reimbursement
agreement, commitment letter, indenture or other agreement (the "Credit Agreement") as identified in
Exhibit A;
WHEREAS, in order to participate in the Program, the Local Agency has agreed to be
responsible for its share of the fees and expenses of the Trustee, and, if applicable, the Credit Provider
and the costs of issuing the Bonds, and the costs, if applicable, of issuing the Credit Instrument, which
anticipated fees, expenses and costs of issuance will be deducted from the purchase price set forth in
F3 hihir A and which unanticipated fees, expenses and costs of issuance will be billed to the Local
Agency as the same may arise;
WHEREAS, the costs of issuance which will be deducted from the purchase price set
forth in Exhibit A for the Local Agency shall not exceed one percent (1%) of the principal amount of
each Note; and
WHEREAS, pursuant to the Program, the Authority is submitting this offer to purchase
the Note pursuant to this Purchase Agreement;
NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency
of which is hereby acknowledged, the parties hereto agree as follows:
Section 1. Obligation to Purchase. Upon the terms and conditions and in
reliant-4 upon the representations, warranties and agreements set forth herein, the Authority shall
purchase from the Local Agency, and the Local Agency shall sell to the Authority, the Note, as
described herein and in the Resolution.
Section 2. Purchase Price. The purchase price of the Note shall be the purchase
price set forth in the pricing confirmation attached hereto as Exhibit A (the "Pricing Confirmation"). The
Note shall bear interest at an interest rate per annum set forth in the Pricing Confirmation, which is
hereby agreed to by and between the Authority and the Local Agency by its duly authorized
representative executing this Purchase Agreement on behalf of the Local Agency.
Section 3. Adjustments to Principal Amount of Note and Purchase Price.
The Authority and the Local Agency hereby agree that the principal amount of the Note purchased by
the Authority and sold to the Authority by the Local Agency pursuant to this Purchase Agreement may
be reduced, as determined by the Authority and each Local Agency, based upon the advice of Orrick,
Herrington & Sutcliffe LLP ("Bond Counsel"), in order that the proceeds produced from such sale of
such Note will be an amount which will not be subject to either (i) yield restriction (in order for interest
to be excluded from gross income under Section 103 of the Internal Revenue Code of 1986, as
amended (the "Code")) or (ii) a rebate requirement (under Section 148 of the Code). The Authority
DOCSLA1:373955.
2
and the Local Agency hereby thriller agree that the purchase price of the Note shall be reduced as a
result of any reduction of the principal amount of the Note required by this section.
Section 4. Delivery of and Payment for the Note. The delivery of the Note
(the "Closing") shall take place at 8:00 a.m., California time, on the closing date set forth in the Pricing
Confirmation or at such other time or date as maybe mutually agreeable to the Local Agency, the
Authority and the Underwriter, at the Los Angeles office of Orrick, Herrington & Sutcliffe LLP or such
other place as the Local Agency, the Authority and the Underwriter shall mutually agree. At the
Closing, the Local Agency shall cause the Note to be delivered to the Authority, duly executed and
authenticated, together with the other documents hereinafter mentioned, and the proceeds of the
purchase price of the Note set forth in the Pricing Confirmation shall be deposited in an amount
indicated in the Pricing Confirmation as the Deposit to Proceeds Fund which shall be held by the
Trustee for the Local Agency and the remainder in the Costs of Issuance Fund held thereunder.
If at any time prior to 90 days after the Closing Date, any event occurs as a result of
which information relating to the Local Agency included in the official statement of the Authority relating
to the Series of Bonds to which the Note is assigned (the "Official Statement") contains an untrue
statement of a material fact or omits to state any material fact necessary to make the statements therein
in light of the circumstances wider which they were made, not misleading, the Local Agency shall
promptly notify the Authority and the Underwriter thereof, and if, in the opinion of the Authority or the
Underwriter, such event requires the preparation and publication of a supplement or amendment to the
Official Statement, the Local Agency shall cooperate with the Authority and the Underwriter in the
preparation of an amendment or supplement to the Official Statement in a form and in a manner
approved by the Authority and the Underwriter, and all reasonable expenses incurred thereby shall be
paid by the Local Agency.
Section 5. The Note. The Note shall be issued in substantially the form set forth
in the Resolution, without coupons in the full principal amount set forth in Exhibit A.
Section 6. Representations and Warranties of the Local Agency. The Local
Agency represents and warrants to the Authority and the Underwriterthat:
(a) All representations and warranties set forth in the Resolution are true and
correct on the date hereof and are made for the benefit of the Authority and the Underwriter as if set
forth herein.
(b) The information relating to the Local Agency included in the Official Statement
does not contain any untrue statement of a material fact or omit to state any material fact necessary to
make the statements therein in light of the circumstance under which they were made not misleading.
(c) A copy of the Resolution has been delivered to the Authority and the
Underwriter, and the Resolution will not be amended or repealed without the consent of the Authority
and the Underwriter, which consent will not be unreasonably withheld.
(d) The Local Agency acknowledges that the Authority isauthorized to execute the
Indenture, to assign the Note to the Trustee under the Indenture and to issue the Series of Bonds
pursuant to the Indenture.
DOCSLA1373955.
3
(e) The Local Agency shall provide the required Payment Account Deposit
Certification (upon a request therefor) in accordance with Section 5.06 of the Indenture.
(f) The Local Agency has not issued and will not issue any obligation or
obligations, other than the Note, to finance the working capital deficit for which the Note is being issued.
Section 7. Conditions Precedent to the Closing. Conditions precedent to the
Closing are as follows:
(a) The execution and delivery of the Note consistent with the Resolution.
(b) Delivery of a legal opinion addressed to the Local Agency (with a reliance letter
addressed to the Authority and the Underwriter), dated the date of closing of Bond Counsel with
respect to the validity of the Bonds in form and substance acceptable to the Authority and the
Underwrite;.
(c) Delivery of a legal opinion, dated the date of Closing, of counsel to the Local
Agency, with respect to the due authorization, execution and delivery of the Note, in form and
substance acceptable to Bond Counsel.
(d) Approval by the Credit Provider of the credit of the Local Agency and inclusion
of the Local Agency's Note in the assignment, together with notes of other Issuers, to a Series of
Bonds, to secure the Series of Bonds, which approval in the event the Credit Instrument is the Reserve
Fund shall be evidenced by the issuance of an "SP-1+" rating with respect to the applicable Series of
Bonds by Standard & Poor's Ratings Services.
(e) Delivery of each certificate, document, instrument and opinion required by the
agreement between the Authority and the Underwriter for the sale by the Authority and purchase by the
Underwriter of the Series of Bonds to which the Pooled Note is assigned.
(f) Delivery of such other certificates, instruments or opinions as Bond Counsel
may deem necessary or desirable to evidence the due authorization, execution and delivery of
documents pertaining to this transaction and the legal, valid and binding nature thereof or as may be
required by the Credit Agreement, as well as compliance of all parties with the terms and conditions
thereof.
4
Section 8. Events Permitting the Authority to Terminate. The Authority may
terminate its obligation to purchase the Note at any time before the Closing if any of the following
occurs:
(a) Any legislative, executive or regulatory action (including the introduction of
legislation) or any court decision which, in the judgment of the Authority, casts sufficient doubt on the
legality of obligations such as the Note, and the tax-exempt status of interest on obligations such as the
Bonds, so as to impair materially the marketability or to reduce materially the market price of such
obligations;
(b) Any action by the Securities and Exchange Commission or a court which would
require registration of the Note, the Bonds or any instrument securing the Note or Bonds under the
DOCSLA1:373955.
w
4
Securities Act of 1933, as amended, in connection with the public offering thereof, or qualification of the
Resolution or the Indenture under the Trust Indenture Act of 1939, as amended;
(c) Any restriction on trading in securities, or any banking moratorium, or the
inception or escalation of any war or major military hostilities which, in the judgment of the Authority,
substantially impairs 'the ability of the Underwriter to market the Bonds; or
(d) The Underwriter terminates its obligation to purchase the Series of Bonds to
which the Note is assigned pursuant to its agreement with the Authority for the purchase of such Series
of Bonds.
Neither the Underwriter nor the Authority shall be responsible for the payment of any
fees, costs or expenses of the issuance, offering and sale of the Local Agency's Note except the
Underwriter shall be responsible for California Debt and Investment Advisory Commission fees and for
its own internal costs. The fees, costs and expenses that are categorized in the "Costs of Issuance"
definition in the Indenture shall be paid from the Costs of Issuance Fund. The Local Agency shall pay
any additional costs attributable to it as set forth in the Resolution other than the fees, costs and
expenses so payable from the applicable Costs of Issuance Fund.
Section 9. Indemnification. To the extent permitted by law, the I. oral Agency
agrees to irttle nify and hold harmless the Authority and the Underwriter and each person, if any, who
controls (within the meaning of Section 15 of the Securities Act of 1933, as amended, or of Section 20
of the Securities Act of 1934, as amended) the Authority or the Underwriter, and the officers, directors,
agents and employees of the Authority and the Underwriter against any and all losses, claims, damages,
liabilities and expenses arising out of any statement or information in the Preliminary Official Statement
or in the Official Statement (other than statements or information regarding an Issuer other than the
Local Agency) that is untrue or incorrect in any material respect or the omission -or alleged omission
therefrom of any statement or information (other than statements or information regarding an Issuer
other than the Local Agency) that should be stated therein or that is necessary to make the statements
and infomiation therein not misleading in any material respect
Section 10. Credit Agreement. The Local Agency shall comply with all lawful and
proper requests of the Authority in order to enable the Authority to comply with all of the terms,
conditions and covenants binding upon it under the Credit Agreement
Section 11. Notices. Any notices to be given to the Underwriter under the
Purchase Agreement shall be given in writing to Lehman Brothers Inc., 601 S. Figueroa Street, Suite
4400, Los Angeles, CA 90017, Attention: Kevin O'Brien. Any notices to be given to the Authority
under the Purchase Agreement shall be given in writing to the Authority, 1100 "K" Street, Suite 101,
Sacramento, CA 95814, Attention: Secretary.
Section 12. No Assignment. The Purchase Agreement has been made by the
Local Agency and the Authority, and no person other than the Local Agency and the Authority or their
successors or assigns and the Underwriter shall acquire or have any right under or by virtue of the
Purchase Agreement. All of the representations, warranties and agreements contained in the Purchase
Agreement shall survive the delivery of and payment by the Authority for the Note and any termination
of the Purchase Agreement.
DOCSLA1373955.
5
Section 13. Applicable Law. The Purchase Agreement shall be interpreted,
governed and enforced in accordance with the laws of the State of California.
Section 14. Effectiveness. The Purchase Agreement shall become effective upon
the execution hereof by the Authority and execution of the Pricing Confirmation by the Local Agency,
and the Purchase Agreement, including the Pricing Confimnation, shall be valid, binding and enforceable
from and after the time of such effectiveness.
Section 15. Severability. In the event any provision of the Purchase Agreement
shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not
invalidate or render unenforceable any other provision hereof.
Section 16. Headings. Any headings preceding the text of several sections hereof
shall be solely for convenience of reference and shall not constitute a part of this Agreement, nor shall
they affect its meaning, construction or effect.
DOCSLA1373955.
Section 17. Execution in Counterparts. This Purchase Agreement may be
executed and entered into in several counterparts, each of which shall be deemed an original, and all of
which shall constitute but one and the same instrument
IN WITNESS WHEREOF, the parties hereto have caused this Purchase Agreement to
be executed by their duly authorized representatives as of the Purchase Date set forth in Exhibit A
attached hereto and incorporated herein.
DOCSL.A1:373955.
CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY
7
Member of the Commission
of the Authority
EXHIBIT A
Pricing Confirmation Supplement
Local Agency: City of National City
Pricing Information
Principal Amount of Note: $
Interest Rate on Note:
Re -Offering Yield:
Purchase Price
Default Rate:
Purchase Price:
Less: Cost of Issuance: _%
Credit Enhancement: _
Deposit to Note Proceeds Account:
Important Dates
Resolution Date of Local Agency:
Purchase Date:
Closing Date:
Maturity Date:
Interest Payment Date(s):
Note Payment Deposit Date:
First Pledge Month Ending -
Pledge Amount:
Pledge Percentage:
Second Pledge Month Rnding:
Pledge Amount:
Pledge Percentage:
Investment Agreement Information
GIC Provider
Long Term Ratings (S&P/Moody's)
Short Term Credit Ratings (S&P/Moody's)
Interest Rate on GIC
DOCSLA1373955.
A-1
* By initialing the box at the end of this paragraph, the undersigned Local Agency
certifies that, in connection with the issuance of the Note under the Resolution and after reasonable
inquiry, it is the reasonable expectation of the Local Agency that the aggregate amount of all tax-exempt
obligations (excluding private activity bonds) issued or to be issued by the Local Agency during the
2001 calendar year, including the Note, all other notes and bonds, and all tax-exempt leases, executed
or delivered during the 2001 calendar year will not exceed $5,000,000 (See Section 3.8 of the
Certificate of the Local Agency if the Local Agency is unable to make this certification). ❑
Investment Alternative - Initial the appropriate box relating to the investment of
proceeds received from the issuance and delivery of the Local Agency's Note:
Yes, the undersigned directs the Trustee to invest the
proceeds received from the issuance and delivery of the Local
Agency's Note in the Guaranteed Investment Contract
described on page A 1.
No, do not invest the proceeds received from the issuance
and delivery of the Local Agency's Note in the Guaranteed
Investment contract.
Initial
One Box
Yes
No
IN WITNESS WHEREOF, the Purchase Agreement, including this Pricing
Confirmation, is agreed and accepted to on the Purchase Date set forth above.
City of National City
Authorized Representative
* Please initial the box only if applicable to the Local Agency.
•
Print Name of Person Signing
DOCST 1373955.
A-2
City of National City, California
COUNCIL AGENDA STATEMENT
i EETING DATE April 24, 2001
AGENDA ITEM NO. 8
irTEhliTTLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING
THE MAYOR TO EXECUTE A MEMORANDUM OF UNDERSTANDING WITH SK8NC
PREPARED BY
EXPLANATION
Jim Ruiz
DEPARTMENT Parks & Recreation
The attached Memorandum of Understanding was developed by the City Attorney after
meeting with officials of sk8nc.
It will provide sk8nc the opportunity to obtain donations and support from volunteers
and corporations in order to help construct a rolling sports complex at Las Palmas
Park.
The City Council tentatively approved Las Palmas Park as a potential site for this
rolling sports complex at the meeting of March 6, 2001.
Environmental Review x N/A
Financial Statement
N/A
STAFF RECOMMENDATION
Approval
BOARD / COMMISSION RECOMMENDATION
Approval
ATTACHMENTS ( Listed Below
MOU
A-200 (9/80)
Account No.
Resolution No.
RESOLUTION NO. 2001 — 5 8
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE A
MEMORANDUM OF UNDERSTANDING WITH SK8NC
WHEREAS, sk8nc is a non -project unincorporated association that has as its
principal objective the establishment of an unsupervised rolling sports court within a City -owned
park; and
WHEREAS, the City is willing to devote park land in Las Palmas Park to the
establishment of an unsupervised rolling sports court; and
WHEREAS, the City and sk8nc desire to enter into a memorandum of
understanding to commit to working in cooperation to accomplish establishment of an
unsupervised roller sports court in Las Palmas Park.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City does hereby authorize the Mayor to execute a Memorandum of Understanding
with sk8nc. Said Memorandum of Understanding is on file in the office of the City Clerk.
PASSED and ADOPTED this 241 day of April, 2001.
George H. Waters, Mayor
ATTEST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney
MEMORANDUM OF UNDERSTANDING
BETWEEN
1Hl CITY OF NATIONAL CITY AND SK8NC
This Memorandum of Understanding is made and entered into this 24th day of April,
2001, by and between the CITY OF NATIONAL CITY, a municipal corporation ("CITY"),
and sk8nc, a non-profit unincorporated association.
1. sk8nc has as its principal objective the establishment of an unsupervised rolling
sports (e.g., bicycles, inline skates, skateboards, scooters) court within a City -owned park in
National City.
2. sk8nc proposes to obtain the services of an appropriately licensed professional to
design the court, and to cause the court to be constructed by an appropriately licensed
contractor. All costs of design and construction will be provided solely by sk8nc, through
donations and/or through volunteer or donated labor and materials.
3. At this time the CITY is willing to devote park land (not to exceed 15,000
square feet) in Las Palmas Park on the east side of the existing tennis courts near Newell
Street, for the construction of a rolling sports court (not to exceed 10,000 square feet) by
sk8nc, on the terms and conditions set forth above, provided that the project can be undertaken
in a manner which is not contrary to the legal requirements for construction of public works
projects.
4. Both parties agree to continue work in cooperation to accomplish the
establishment of a roller sports court in Las Palmas Park, according to the terms and
conditions set forth herein.
IN WITNESS WHEREOF, this Memorandum of Understanding is made and entered
into on the date first set forth above.
CITY OF NATIONAL CITY
sk8nc
By: By:
George H. Waters, Mayor Dan Ai
APPROVED AS TO FORM:
George H. Eiser, III
City Attorney
no, Director
City of National City, California
COUNCIL AGENDA STATEMENT
MEETING DATE April 24, 2001
9
AGENDA ITEM NO.
(ITEM TITLE
ORDINANCE AMENDING TITLE 9, CHAPTERS 9.40 AND 9.48 OF THE NCMC BY THE ADOPTION
OF TITLE 6, CHAPTERS 11 AND 12 OF THE SAN DIEGO COUNTY CODE OF REGULATORY ORDINANCES
RELATING TO "CERTIFIED UNIFIED PROGRAM AGENCY, HAZARDOUS MATERIALS INVENTORY AND
RESPONSE PLAN" AND "MEDICAL WASTES"
PREPARED Y DEPARTMENT /L
EXPLANATIONRudolf Hradecky City Attorney 'A
The County of San Diego has amended its Code of Regulatory Ordinances dealing with the
"Certified Unified Program Agency, Hazardous Materials Inventory and Response Plan, and
Medical Wastes". All cities in the County have been requested to adopt the County Code by
reference to allow uniformity of enforcement by the County Department of Environmental Health.
That Department administers and enforces state and local ordinances governing hazardous and
medical wastes. This ordinance adopts the pertinent County regulatory codes by reference for
enforcement purposes.
Environmental Review X N/A
Financial Statement
N/A
>STAFF RECOMMENDATION
Adopt proposed Ordinance.
BOARD / COMMISSION RECOMMENDATION
N/A
Account No.
ATTACHMENTS ) Listed Below )
Proposed Ordinance.
Copy of County Ordinance
Resolution No.
A-200 (9/80)
ORDINANCE NO. 2001 —
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF NATIONAL CITY
AMENDING TITLE 9, CHAPTERS 9.40 AND 9.48
OF THE MUNICIPAL CODE BY THE ADOPTION OF
TITLE 6, CHAPTERS 11 AND 12 OF THE SAN DIEGO
COUNTY CODE OF REGULATORY ORDINANCES
RELATING TO "CERTIFIED UNIFIED PROGRAM
AGENCY, HAZARDOUS MATERIALS INVENTORY
AND RESPONSE PLAN" AND "MEDICAL WASTE"
BE IT ORDAINED by the City Council of the City of National City that the
National City Municipal Code is hereby amended to read as follows:
Section 1. That Chapter 9.40 of the Municipal Code is hereby amended by amending
the title to read "DISCLOSURE OF HAZARDOUS MATERIALS AND REGULATION OF
HAZARDOUS WASTE ESTABLISHMENTS, AND ADOPTION OF THE CER111,7ED
UNIFIED PROGRAM AGENCY, HAZARDOUS MATERIALS INVENTORY AND
RESPONSE PLAN" and adding Sections 9.40.040 and 9.40.050 to read in their entirety as
follows:
9.40.040 Adoption of the San Diego County Ordinance relating to the Certified
Unified Program Agency, Hazardous Materials Inventory and Response Plan. Chapter 11 of
Division 8 of Title 6 of the San Diego County Code, commencing with Section 68.1101, known
as the "Certified Unified Program Agency, Hazardous Materials Inventory and Response Plan",
is hereby adopted as an ordinance of the City of National City, together with any amendments
and modifications of that division as have been, are or shall be duly adopted by the County of
San Diego, unless local modifications are enacted by the City of National City. Copies of the
Code hereby adopted by reference shall be kept on file in the Office of the City Clerk.
9.40.050 Enforcement. The provisions of this Chapter 9.40 shall be administered
and enforced by the Director of Environmental Health, or designee, of the County of San Diego.
9.40.060 Penalties. Section 68.1114 of the County Code of Regulatory Ordinance
is adopted and is set out in full, reading as follows:
In addition to penalties provided in state law, the following criminal, civil and
administrative civil penalties apply to violations of this Chapter.
(a) Penally for Mi demeanor. Unless otherwise specified by this Chapter, a
misdemeanor is punishable by a fine not exceeding one thousand dollars
($1,000), imprisonment for a term not exceeding six (6) months, or by both
such fine and imprisonment.
(b) Civil Penalty. Any person who violates any provision of this Chapter is liable
for a civil penalty of not more than two thousand dollars ($2,000) for each
day, or part thereof such violation occurs. Any person who knowingly
violates any provision of this Chapter, after reasonable notice of the violation
is liable for a civil penalty of not more than five thousand dollars ($5, 000) for
each day, or part thereof that such violation occurs. The County Counsel or
District Attorney is authorized to bring a civil action in any court of
competent jurisdiction to recover such civil penalties for the County.
(c) Continuing Violation. Each and every day a violation of this chapter
continues shall constitute a separate offense. The person committing or
permitting such offenses may be charged with a separate offense for each such
violation and punished accordingly.
Section 2. That Chapter 9.48 of the National City Municipal Code is hereby repealed
in its entirety and is replaced with the following heading and provisions, to read as follows:
CHAPTER 9.48
CERTIFIED UNIFIED PROGRAM
AGENCY, MEDICAL WASTES
Sections:
9.48.010 Adoption of the San Diego County Ordinance relating to the Certified
Unified Program Agency, Medical Wastes
9.48.020 Enforcement
9.48.030 Criminal penalties
9.48.040 Civil penalties
9.48.010 Adoption of the San Diego County Ordinance relating to the Certified
Unified Program Agency, Medical Wastes. Chapter 12 of Division 8 of Title 6 of the San Diego
County Code, commencing with Section 68.1201, known as the "Certified Unified Program
Agency, Medical Wastes", is hereby adopted as an ordinance of the City of National City,
together with any amendments and modifications of that division as have been, are or shall be
duly adopted by the County of San Diego, unless local modifications are enacted by the City of
National City. Copies of the Code hereby adopted by reference shall be kept on file in the Office
of the City Clerk.
9.48.020 Enforcement. The provisions of this Chapter 9.48 shall be administered
and enforced by the Director of Environmental Health, or designee, of the County of San Diego.
9.48.030 Criminal penalty. Section 68.1208 of the County Code of Regulatory
Ordinances is adopted and is set out in full, reading as follows:
2001 Ordinance
2
Hazardous Materials and Medical Wastes
Violation of any of the provisions of this chapter shall be a misdemeanor
punishable by imprisonment in the County jail not exceeding one year, or a fine
not exceeding ten thousand dollars ($10,000), or both.
9.48.040 Civil penalties. Section 68.1209 of the County Code of Regulatory Ordinances is
adopted and is set out in full, reading as follows:
Any person who violates any of the provisions of this chapter shall be liable for a
civil penalty not to exceed fifteen thousand dollars ($15,000) for each such
violation.
Section 3. The City Clerk shall send certified copies of this ordinance upon its
adoption to the Clerk of the Board of Supervisors and to the Director of Environmental Health of
the County of San Diego.
Section 4. The City Clerk shall keep and maintain copies of the San Diego County
Code of Regulatory Ordinances hereby adopted on file in the Office of the City Clerk.
PASSED and ADOPTED this day of , 2001.
Al"1'hST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
City Attorney
2001 Ordinance
3
George H. Waters, Mayor
Hazardous Materials and Medical Wastes
ORDINANCE NO. (NEW SERIES)
AN ORDINANCE AMENDING AND REPEALING. PORTIONS OF THE SAN DIEGO
COUNTY CODE OF REGULATORY ORDINANCES, AND ADDING SECTIONS TO THE
COUNTY CODE, RELATING TO THE CERTIFIED UNIFIED PROGRAM AGENCY,
REGULATION OF UNDERGROUND STORAGE OF HAZARDOUS SUBSTANCES,
REGULATION OF HAZARDOUS MATERIALS AND REGULATION OF MEDICAL
WASTES
The Board of Supervisors of the County of San Diego ordains as follows:
Section 1. The Board of Supervisors finds and determines that the sections of the County
Code of Regulatory Ordinances assigned to the Hazardous Materials Division of the Department
of Environmental Health were established during the 1980s and early 1990s and have not been
updated since then. The Board further finds and determines that since that time, there have been
many new State and Federal environmental laws and regulations passed regarding hazardous
waste, underground storage tanks, hazardous materials and medical waste. The amendments
made by this ordinance are intended to ensure that the applicable County Code sections reflect
current State and Federal environmental laws and .regulations, including the California Health
and Safety Code and the Medical Waste Management Act. The provisions of this ordinance
shall be operative as of January 13, 2001.
Section 34. The title of Chapter 11 of Division 8 of Title 6 of the San Diego County
Code is hereby amended to read as follows:
CHAPTER 11. CER 1111ED UNIFIED PROGRAM AGENCY, HAZARDOUS
MATERIALS INVENTORY AND RESPONSE PLANS
Section 35. Section 68.1101 of the San Diego County Code is hereby amended to read as
follows:
SEC. 68.1101. PURPOSE.
It is the intent of the Board of Supervisors that the Director of the Department of Environmental
Health shall implement Division 20, Chapter 6.95 of the Health and Safety Code. It is further the
intent of the Board of Supervisors that the Director of the Department of Environmental Health
expand the application of the Business Plan, Area Plan, other reporting, disclosure and
monitoring requirements of Division 20, Chapter 6.95 of the Health and Safety Code in a manner
hereinafter prescribed.
Section 36. Sections 68.1102 through 68.1111 of the San Diego County Code are hereby
repealed.
Section 37. Section 68.1112 of the San Diego County Code is hereby amended to read as
follows:
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SEC. 68.1112. ENFORCEMENT OF HAZARDOUS MATERIALS RESPONSE PLAN
AND INVENTORY REQUIREMENTS AT AGRICULTURAL BUSINESSES.
Every business which is required, pursuant to California Health and Safety Code, to provide
information regarding inventories or hazardous materials to the Agricultural Commissioner shall
pay a maximum yearly fee in accordance with the Board of Supervisors resolution for such fee.
Such fee shall pay the expenses of the Agricultural Commissioner in collecting annual
inventories and conducting at least triennial storage inspections of agricultural businesses to
ensure proper compliance with hazardous materials response plan and inventory requirements
Section 38. Section 68.1113 is hereby added to the San Diego County Code, to read as
follows:
SEC. 68.1113. DISCLOSURE OF HAZARDOUS MATERIALS.
(a) Any business which handles hazardous material subject to the requirements of Chapter
6.95 (commencing with section 25500) of Division 20 of the Health and Safety Code
shall provide information in conformance with said Chapter to the Director of the
Department of Environmental Health.
(a) Any business which, handles compressed gases with a Threshold Limit Value of 10 parts
per million or less shall report these gases as part of their chemical inventory, in any
quantity, and shall prepare a business plan in conformance with Chapter 6.95
(commencing with section 25500) of Division 20 of the Health and Safety Code, and
shall submit said plan to the Director of the Department of Environmental Health.
(c) Any business which (i) submits a plan under paragraphs (a) or (b) and (ii) handles a
material which is a carcinogen or reproductive toxin in quantities not subject to the
requirements of Chapter 6.95 (commencing with section 25500) of Division 20 of the
Health and Safety Code, shall provide a list of each such material handled during the
previous year to the Director of the Department of Environmental Health.
(1)
The list as required in paragraph (c) for carcinogens or reproductive toxins is not
subject to the chemical inventory reporting format requirements of the Health and
Safety Code.
(2) The list shall identify each material handled and shall specify whether the quantity
of each such material handled at any one time during a reporting year, based upon
a good faith estimate is:
less than One (1) Gallon,
less than Ten (10) Gallons, or
less than Fifty-five (55) Gallons
if measured by volume; or
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(3)
less than One (1) Pound,
less than One Hundred (100) Pounds, or
less than Five Hundred (500) Pounds
if measured by weight.
The list of such materials handled shall be renewed each year by providing a
supplemental listing sheet which:
(i) Deletes any such material which was not handled during the previous
year;
(ii) Provides the information required in subsection (1) above, for any such
material used during the previous year which was not included in the list
or any previous supplemental listing sheets; and
(iii) Identifies any changes in the quantity handled of such material.
(4) The provisions of subsections (a) and (c) shall not apply to businesses using the
following carcinogens and they shall be exempted from the requirements of
Chapter 6.95 (commencing with section 25500) of Division 20 of the Health and
Safety Code: aflotoxins, alcoholic beverages, betel quid with tobacco, bracken
fern, diesel engine exhaust, gasoline engine exhausts, tobacco smoke, aspirin,
cocaine, anabolic steroids, oral contraceptives, saccharin, and tobacco.
(5)
The provisions of subsection (c) shall not apply to the following carcinogens:
gasoline, crystalline, silica, soot, tars and mineral oil, and residual (heavy) fuel
oils. Any business which handles these carcinogens are subject to the
requirements of Chapter 6.95 (commencing with section 25500) of Division 20 of
the Health and Safety Code
(6) The provisions of this subsection shall not apply to materials which are (i) used or
intended for use for medical or therapeutic purposes, or (ii) contained solely in a
consumer product for direct distribution to, and use by, the general public.
(d) Unless otherwise defined herein, the definitions set forth in Health and Safety Code
section 25501 through 25501.4, inclusive, govern the construction of this section.
(e) For the purpose of this section, a carcinogen and reproductive toxin shall be those listed
by the Governor pursuant to Health and Safety Code section 25249.8.
-3-
Section 39. Section 68.1114 is hereby added to the San Diego County Code, to read as
follows:
SEC. 68.1114. PENALTIES.
In addition to penalties provided in State law, the following criminal, civil and administrative
civil penalties apply to violations of this Chapter.
(a) Penalty for Misdemeanor. Unless otherwise specified by this Chapter, a misdemeanor is
punishable by a fine not exceeding one thousand dollars ($1000), imprisonment for a term
not exceeding six (6) months, or by both such fine and imprisonment.
(b) Civil Penalty. Any person who violates any provision of this Chapter is liable for a civil
penalty of not more than two thousand dollars ($2,000) for each day, or part thereof, such
violation occurs. Any person who knowingly violates any provision of this Chapter, after
reasonable notice of the violation is liable for a civil penalty of not more than five thousand
dollars ($5,000) for each day, or part thereof, that such violation occurs. The County
Counsel or District Attorney is authorized to bring a civil action in any court of competent
jurisdiction to recover such civil penalties for the. County.
(c) Continuing Violation. Each and every day a violation of this chapter continues shall
constitute a separate offense. The person committing or permitting such offenses may be
charged with a separate offense for each such violation and punished accordingly.
Section 40. Section 68.1115 is hereby added to the San Diego County Code, to read as
follows:
SEC. 68.1115. ADMINISTRATIVE ENFORCMENT POLICY.
By written policy the Department of Environmental Health shall adopt procedures for enforcing
this Chapter and Section 25514.6 of the California Health and Safety Code. Such procedures
shall contain those elements required by, and shall be consistent with the provisions stated in,
Health and Safety Code section 25514.6, or any successor statute thereto. The administrative
enforcement procedures adopted shall not be exclusive, but are cumulative with all other
remedies available by law and under this Chapter.
Section 41. The title of Chapter 12 of Division 8 of Title 6 of the San Diego County
Code is hereby amended to read as follows:
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CHAPTER 12. CERTIFIED UNIFIED PROGRAM AGENCY, MEDICAL WASTES*
Section 42. Section 68.1201 of the San Diego County Code is hereby amended to read as
follows:
SEC. 68.1201. PURPOSE
It is the intent of the Board of Supervisors that the Director of the Department of Environmental
Health shall implement the Medical Waste Management Act, Division 104, Part 14 of the
California Health and Safety Code.
Section 43. Section 68.1202 of the San Diego County Code is hereby amended to read as
follows:
SEC. 68.1202. SMALL QUANTITY GENERATORS.
(a) It shall be unlawful for any generator of medical waste, other than a trauma scene
waste management practitioner, that generates less than 200 pounds per month of
medical waste to store or dispose of such wastes without an annual permit
therefore from the Director of the Department of Environmental Health.
Any person desiring a permit required by this chapter shall make application
therefor as prescribed in Chapter 9, Section 68.906 of this division.
(b)
Section 44. Section 68.1203 of the San Diego County Code is hereby amended to read as
follows: -
SEC. 68.1203. LARGE QUANTITY GENERATORS.
(a) It shall be unlawful for any generator of medical waste, other than a trauma scene waste
management practitioner, that generates more than 200 pounds per month of medical
waste to store or dispose of such wastes without an annual permit therefor from the
Director of the Department of Environmental Health.
Any person desiring a permit required by this chapter shall make application therefor as
prescribed in Chapter 9, Section 68.906 of this division.
Section 45. Section 68.1204 of the San Diego County Code is hereby amended to read as
follows:
SEC. 68.1204. FEE.
(b)
Every person required to have a permit or license required by this division shall, at the time of
making application or renewal, pay the annual fee prescribed for such a permit or license. Such
-5-
annual permit fees shall be specified in Section 65.107 of the County Code of Regulatory
Ordinances.
Section 46. Section 68.1205 of the San Diego County Code is hereby amended to read as
follows:
SEC. 68.1205. SHARPS CONTAINER LABELING
Sharps containers must be labeled with either "biohazard" or "infectious waste" on the outside of
the container. Sharps containers must also be labeled so that the generator's name, address and
phone number are legible and easily visible on the outside of the container.
Section 47. Section 68.1206 of the San Diego County Code is hereby amended to read as
follows:
SEC. 68.1206. RED BAG LABELING.
Red Bags shall be red in color and conspicuously labeled with the international biohazard
symbol and the word "Biohazard". The bag shall be labeled so that the generator's name,
address, and phone number is legible and easily visible on the outside of the bag.
Section 48. Section 68.1207 of the San Diego County Code is hereby amended to read as
follows:
SEC. 68.1207. MEDICAL SOLID WASTE.
Medical solid waste shall include, but not be limited to, waste such as empty specimen
containers, bandages, dressings containing non -liquid blood, surgical gloves, decontaminated
biohazardous waste, and other materials which are not biohazardous.
Section 49. Section 68.1208 is hereby added to the San Diego County Code, to read as
follows:
SEC. 68.1208. CRIMINAL PENALTY.
Violation of any of the provisions of this chapter shall be a misdemeanor punishable by
imprisonment in the County jail not exceeding one year, or a fine not exceeding ten thousand
dollars ($10,000), or both.
Section 50. Section 68.1209 is hereby added to the San Diego County Code, to read as
follows:
SEC. 68.1209. CIVIL PENALTY.
Any person who violates any of the provisions of this chapter shall be liable for a civil penalty
not to exceed fifteen thousand dollars ($15,000) for each such violation.
Section 51. Section 68.1210 is hereby added to the San Diego County Code, to read as
follows:
SEC. 68.1210. ADDITIONAL REMEDIES.
The civil and criminal provisions of this chapter are remedies in addition to any existing remedy
authorized by law and are not to be construed as conflicting with or in dereliction of, any
provisions of this chapter or of this code or of law. Said provisions are to be construed as
independent and non-exclusive and in no way conditioned upon each other.
Section 52. Section 68.1211 of the San Diego County Code of Regulatory Ordinances is
hereby amended to read as follows:
SEC. 68.1211. MEDICAL SOLID WASTE SECURITY.
Any person who is a generator, or an employee of a generator of medical solid wastes, shall store
such wastes prior to disposal in an area secured as to deny access to unauthorized persons,
animals, wind, rain, insects and rodents. If such wastes are placed in a trash receptacle or
compactor which is accessible at any time to unauthorized persons, such receptacle or compactor
shall be locked to prevent access to the contents thereof to anyone other than authorized persons
or refuse collection personnel.
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City of National City
Office of the City Clerk
1243 National City Boulevard, National City, CA 91950-4397
Michael R. Della, CMC - City Clerk
(619) 336-4228 Fax: (619) 336-4229
April 16, 2001
To: Mayor & Council
From: City Clerk
Subject: City Council Meeting Times and Dates
ITEM #10
4/24/01
Information has been requested on the date and time of City Council
meetings in cities in San Diego County. That information is attached.
MRD/mla
Attachment
cc: City Manager
Iv
® Recycled Paper
Meeting Frequency
City
Meeting Time
Meeting Day
1
2
3
4
5
Carlsbad
6pm
Tuesday
X
X
X
X
Chula Vista
4pm & 6pm
Tuesday
XXX
X.
Coronado
3pm
Tuesday
X
X
Del Mar
6pm
Monday
X
X
X
El Cajon
3pm & 7pm
Tuesday
X
X
Encinitas
6:30pm
Wednesday
X
X
X
Escondido
4pm & 7:30pm
Wednesday
X
X
X
X
Imperial Beach
6pm
Wednesday
X
X
La Mesa
4pm & 7pm
Tuesday
X
X
Lemon Grove
6pm
Tuesday
X
X
National City
3pm & 6pm
Tuesday
X
X
X
X
Oceanside
2:30pm & 6:30pm
Wednesday
X
X
X
X
Poway
7pm
Tuesday
X
X
X
X
X
San Marcos
6:30pm
Tuesday
X
X
Santee
7pm
Wednesday
X
X
Solana Beach
6:30pm
Tuesday
X
X
Vista
2pm & 6pm
Tuesday
X
X
ITEM #13
4/17/01
To: Assistant City Manager, Park MORSE
From: Council Member BEAUCHAMP
Date: 13 April 2001
Re: Discussion of Modification of Council Meeting Frequency and Times
Please place on the agenda for the 17 April 2001 City Council meeting the issue
for discussion of a possible modification of the frequency and times for the City Council
meetings.
ITEM kll
4/24701
City Manager,
I would like to put an item regarding the collection of over
due sewer bills (specificily from rentals) on the agenda as soon as
possible. I will make a presentation of my concerns at that
meeting, stating my.opinion that this is a flawed ordinance, and.
civniee 17vd
should be revisited by thenne-wer members of the city c.;ouncil, that
wore not around when this orLinance was written and passed.
Sinoerly, Darryl Gorham
ITEM #12
4/
Samoan Community Council of fa2n Diego
April 8, 2981
Mayor and City Council
City of National City
1243 National City Blvd.
National City, CA 91950
Talofa Lava,
We request placement on the agenda for the City Council meeting of April 24th.
We at the Samoan Community Council are seeking funding for our cultural dance
classes. We have approximately 180 participants, many who are youth, who have
applied to attend.
The vast majority, like National City Police Captain Penu Pau'u, who is a member
as well as past president of our Council, live or work in National City.
Participants ages range from 15 to 58.
We feel our Samoan cultural dance classes are an important and unique
opportunity to connect our youth with values and morals that are increasingly
being eroded today. And it is one of the only opportunities we have to connect
our young people to our Samoan culture.
Our dance classes meet three times a week, (see attached schedule,) so that
participants will learn the dances in order to perform during the two days of
the seventh annual San Diego Pacific Islander Festival, July 14th and 15th. Last
year's festival attracted over 388,888 attendees.
The amount of funding we are seeking is $7,388 (please see attached budget.)
We hope that you will agree that this is an important opportunity to instruct
and guide our youth in ways that will give back to the community for many years
to come. We hope that you find our project worthy of your financial support.
Ia Manuia,
P. Sinapati Sotoa
President
IF