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Home My WebLink About2005 07-19 CC AGENDA PKTAgenda Of A Regular Meeting National City City Council Council Chambers Civic Center 1243 National City Boulevard National City, California Regular Meeting - Tuesday — July 19, 2005 - 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. Pledge of Allegiance to the Flag by Mayor Nick Inzunza Public Oral Communications (Three -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. Upon request, this agenda can be made available in appropriate alternative formats to persons with a disability in compliance with the Americans with Disabilities Act. Please contact the City Clerk's Office at 336-4228 to request a disability -related modification or accommodation. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Spanish audio interpretation is provided during Council Meetings. Audio headphones are available in the lobby at the beginning of the meetings. Audio interpretacion en espanol se proporciona durante sesiones del Consejo Municipal. Los audiofonos estan disponibles en el pasillo al principio de la junta. tP% Council Requests That All Cell Phones And Pagers Be Turned Off During City Council Meetings COPIES OF THE CITY COUNCIL MEETING AGENDAS AND MINUTES MAY BE OBTAINED THROUGH OUR WEBSITE AT www.ci.national-city.ca.us COUNCIL AGENDA 7/19/05 PAGE 2 PROCLAMATION Proclaiming Tuesday, June 21 as: "Edward Brand Day" PRESENTATIONS Recognizing Kimberly Maraya, a student at Sweetwater High School, for her many accomplishments Employee of the Month Program — Amelia Chavez, Crime Scene Specialist Presentation by Councilman Natividad and Chief Gonzales Presentation — by Henry Abarbanel, City of Del Mar regarding SANDAG, Energy Working Group INTERVIEWS/APPOINTMENTS 1. Interviews and appointments: Sweetwater Authority 2. Interviews and appointments: Ad Hoc Committee on Housing 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. 3. Approval of the Minutes of the Regular Meeting of June 21, 2005. 4. Approval of a motion to waive reading of the text of all Ordinances considered at this meeting and provides that such Ordinances shall be introduced and/or adopted after a reading of the title only. (City Clerk) 5. Resolution of the City of National City approving Change Order Number One to Heffler Company, Inc. for National City Blvd. 7th Street to 12th Street Improvements, Spec. No. 04-12 in the amount of $127,049.94 for additional removal and disposal of unsuitable material on 9th Street, removal of railroad ties and additional paving overlay on National City Boulevard and authorizing the City Engineer to approve and sign the change order. (Engineering) COUNCIL AGENDA 7/19/05 PAGE 3 CONSENT CALENDAR (Cont.) 6. Resolution directing the preparation of the report required by Health & Safety Code Section 5473 for the collection of sewer charges on the tax roll and setting a public hearing thereof for August 2, 2005. (Public Works) 7. Resolution of the City Council of the City the National City authorizing the Mayor to execute an easement deed granting a sewer easement, APN 570-020-47-00, to the County of San Diego for the reconstruction of an existing sewer line known as the Spring Valley Outfall Sewer located at the intersection of Plaza Bonita and Equitation Road. (Engineering) 8. Resolution of the City Council of the City of National City finding that an emergency exists approving the waiver of bidding requirements as authorized by Section 20168 of the Public Contract Code, and awarding a contract to Ace Excavating and Environmental Services for the removal of three underground storage tanks located on City property. (Engineering) 9. Temporary Use Permit — El Pueblo Neighborhood Block Party — Saturday, July 30, 2005 at 10 a.m. to 3 p.m. at K Street, between 5th and 6th. (Building & Safety) 10. Temporary Use Permit — Common Man Wealth Industries/Kids Say Nope to Dope — Nope to Dope Park Rally. — Saturday, July 30, 2005, 11 a.m. to 4 p.m. at Las Palmas Park. (Building & Safety) 11. Temporary Use Permit — Apostolic Assembly Temporary Trailers — August 1, 2004 to September 1, 2005 at 125 Palm Avenue, National City, California 91950 (Building & Safety) 12. Temporary Use Permit — National City Public Library Gala Event — August 12, 2005, 7 pm. To 9 p.m. at 1401 National City Boulevard. (Building & Safety) 13. Temporary Use Permit — National City Public Library Grand Opening Celebration — August 13, 2005, 12:00 Noon — 4:00 p.m. at 1401 National City Boulevard, National City, California 91950. (Building & Safety) COUNCIL AGENDA 7/19/05 PAGE 4 CONSENT CALENDAR (Cont.) 14. Temporary Use Permit — Christiansen Amusements Plaza Bonita Carnival — August 18, 2005 to August 21, 2005 at 3030 Plaza Bonita Road, National City, California 91950 — Hours: Th/Fr. 5 p.m. to 11 p.m.: Sat/Sun. 1 p.m. to 11 p.m. (Building & Safety) 15. Temporary Use Permit — National City Chamber of Commerce - Taste of National City - August 25, 2005 from 5:00 p.m. — 8:00 p.m. (Building & Safety) 16. Temporary Use Permit — 201h Annual Chili & Salsa Cook Off — Saturday, October 22, 2005, 10 a.m. to 3:00 p.m. at 1401 National City Boulevard. (Building & Safety) 17. WARRANT REGISTER # 48 (Finance) Ratification of Demands in the amount of $995,129.96. 18. WARRANT REGISTER # 49 (Finance) Ratification of Demands in the amount of $574,044.69. 19. WARRANT REGISTER # 50 (Finance) Ratification of Demands in the amount of $1,081,282.64. 20. WARRANT REGISTER # 51 (Finance) Ratification of Demands in the amount of $457,142.16. ORDINANCES FOR INTRODUCTION 21. An Ordinance of the City Council of the City of National City adding Chapter 10.58 to the National City Municipal Code to regulate business licenses and for "deferred deposit transaction businesses", also known as "payday lenders", and repealing Ordinance No. 2004-2254. (City Attorney) COUNCIL AGENDA 7/19/05 PAGE 5 ORDINANCES FOR INTRODUCTION (Cont.) 22. Ordinance of the City Council of the City of National City rezoning certain parcels of real property pursuant to the land use code from RS-2-PD to RM-1-PD for the properties located at 1125, 1251 and 1311 East Division Street. (Applicant: National Housing Fund, Inc.) Case File Nos: GP-2004-1/ZC-2004-3. (Community Development Commission 23. Ordinance of the City Council of the City of National City rezoning certain parcels of real property pursuant to the land use code from MM-CZ to CT-PD-CZ for the properties associated with the Marina Gateway Place Project. (Applicant: Community Development Commission) Case File Nos. GP-2004/5-ZC-2004-2. (Community Development Commission) ORDINANCES FOR ADOPTION 24. An Ordinance of the City of National City rezoning a certain parcel of real property pursuant to the Land Use Code from RS-3-PD to CL for the southern half of the property at 3102 E. 16th Street. (Applicant: City of National City) (Case File No. GP-2005-/ZC-2005-1) (Planning) 25. An Ordinance of the City of National City imposing a Transactions and Use Tax to be administered by the State of Equalization. (City Attorney) 26. An Ordinance of the City Council of the City of National City declaring an emergency pursuant to Article XIII C of the California Constitution, and ordering the submission of a Measure to impose a Transactions and Use Tax (sales tax) in the amount of one percent (1%) to the qualified voters of the City at the Special Municipal Election to be held on November 8, 2005. (City Attorney) NON CONSENT RESOLUTIONS 27. Resolution of the City Council of the City of National City ordering the submission of a measure to the qualified voters of the City Of National City at the special municipal election to be held on November 8, 2005, relating to approval of an Ordinance imposing a one cent transactions and use tax (a- sales tax) for City services, facilities, and programs. (City Attorney) COUNCIL AGENDA 7/19/05 PAGE 6 NON CONSENT RESOLUTIONS (Cont.) 28. Resolution of the City Council of the City Of National City calling and giving notice of the holding of a special municipal election to be held on Tuesday, November 8, 2005 for the purpose of submission of a ballot measure to the voters as required by the laws of the State of California relating to General Law Cities. (City Attorney) 29. Resolution of the City Council of the City Of National City requesting the Board of Supervisors of the County of San Diego to consolidate a special municipal election to be held on November 8, 2005, with the statewide general election to be held on the same date pursuant to Section 10403 of the Election Code. (City Attorney) 30. Resolution of the City Council of the City of National City authorizing the filing of an impartial analysis and written arguments relating to a measure to approve an Ordinance imposing a one cent transactions and use tax (a sales tax) for City services, facilities and programs. (City Attorney) NEW BUSINESS 31. City of National City Public Safety Camera System. (Police) 32. Disposition of old library surplus property. (City Manager) 33. Consideration of issuance of additional taxicab permits and medallions. (City Attorney) JOINT PUBLIC HEARING with the City Council, Community Development Commission, and Parking Authority, and Resolution of the City Council approving the disposition and development agreement by and between the Community Development Commission, Parking Authority and ARE Holdings, LLC, for development of the cove at San Diego Bay Project; approving the Health & Safety Code Section 33433 Report; approving the Project Concept Plan; and making certain findings in connection herewith - See separate agenda of the Joint Meeting of the City Council, Community Development Commission, and Parking Authority for July 19, 2005 at 6:00 p.m. (Community Development Commission) WRITTEN COMMUNICATIONS 34. Alpha Project Progress Report — June 1, 2005 — July 1, 2005 COUNCIL AGENDA 7/19/05 PAGE 7 WRITTEN COMMUNICATIONS (Cont.) 35. National City Transit Report — July-2005 — John P. Webster, Sr., General Manager, National City Transit 36. Letter from Senator Dianne Feinstein congratulating National City on receiving an Edward Byrne Memorial Justice Assistance Grant from the U.S. Department of Justice. STAFF MAYOR AND CITY COUNCIL CLOSED SESSIONS 1. Conference with Labor Negotiators - Government Code Section 54957.6 a) Agency Designated Representatives: Alfredo Lopez, Ryan Hyland, Roger Post, Kathleen Trees, and Capt. Leonard Knight Employee Organization: Municipal Employees' Association b) Agency Designated Representatives: Alfredo Lopez, Ryan Hyland, Asst. Capt. Leonard Knight, Steve Berliner, Esq. Employee Organization: Police Officers' Association 2. Conference with Legal Counsel - Anticipated Litigation Initiation of Litigation Pursuant to Government Code Section 54956.9(c) One Potential Case Next Regular City Council Meeting — Tuesday — August 2, 2005 - 4:00 p.m. — Council Chambers, Civic Center TAPE RECORDINGS OF EACH CITY COUNCIL MEETING ARE AVAILABLE FOR SALE IN THE CITY CLERK'S OFFICE '^PoRA11D AU�� CITY OF NATIONAL CITY WHEREAS, Dr. Edward Brand has served the Sweetwater Union High School District for the past 11 years as Superintendent, the district's highest official; and WHEREAS, Dr. Brand has been an educational leader for 29 years serving in a variety of roles in several districts and the San Diego County Office of Education. His dedication and innovative leadership has positively influenced the educational arena at the local, state and national level; and WHEREAS, Dr. Brand's leadership skills have led the district on a decade of educational reform to maximize student achievement and his human relations skills and hands-on approach to school and community leadership are second to none; and WHEREAS, Dr. Brand has positively impacted student academic achievement in the Sweetwater Union High School District through innovative solutions such as the higher education initiative, Compact for Success; and WHEREAS, Dr. Brand leads by example and has served as the Chairperson of the San Diego County Achievement Gap Task Force; and WHEREAS, Dr. Brand's inspiration to educational leaders led to his having been named Superintendent of the Year by several prestigious organizations including the Association of California School Administrators. THEREFORE, as Mayor & City Council, by virtue of the authority vested in us by the City of National City, do hereby proclaim Tuesday, Junc 21 as: DR. EDWARD BRAND DAY We call upon all citizens of National City take a moment to recognize Dr. Edward Brand for his exceptional service, leadership, and commitment to the South Bay. Ron Morrison V. Mayor her PIO Nick hizunza Mayor 41AO Frank Parra Councilmcmber Rosalie Councilwoman e City of National City Human Resources Department 1243 National City Boulevard National City, CA 91950-4301 Phone: (619) 336-4300 TDD: (619) 336-4304 MEMORANDUM July 7, 2005 TO Chris Zapata, City Manager FROM Alfredo J. Lopez III, Director of Human Resourc SUBJECT EMPLOYEE OF THE MONTH PROGRAM The Employee of the Month Program communicates the City's appreciation for outstanding performance. In doing so, it recognizes employees who maintain high standards of personal conduct and make significant contributions to the workplace and community. The employee selected by the Police Department (Non -Safety) to be recognized for the month of July 2005 is Amelia Chavez, Crime Scene Specialist (nomination attached). Ms. Chavez has been invited to attend the Council meeting on Tuesday, July 19, 2005, to be recognized for her achievements and service. Attachment (1) xc: Adolfo Gonzales, Police Chief Mike Harlan Amelia Chavez Councilmember Natividad AJL:Igr Performance Recognition Program (2) ® Recycled Paper City of National City Performance Recognition Award Nomination Form I nominate Amelia Chavez, Crime Scene Specialist, Police Department for the Performance Recognition Award for the following reasons: Please state reason why your nominee should receive an award, (Le., examples of service beyond requirements of position, exemplary service to the public, outstanding job performance, etc). Do not to exceed 150 total words. Please be as specific as possible when giving your examples. Crime Scene Specialist (CSS) Amelia Chavez is a 5-year veteran of the Police Department. CSS Chavez handles many assignments including completing "cold" crime cases, assisting with major criminal cases (such as homicides), and processing all types of evidence, including DNA. CSS Chavez' duties can be thought of as being like "CSI- National City," which she performs admirably. A temporary vacancy in the Crime Analysis Unit came up and CSS Chavez volunteered. Without assistance, CSS Chavez successfully managed several projects, which included: 1) Gathering statistical data and preparing power -point presentations, 2) Analyzing statistical data regarding all aspects of patrol, which includes calls for service, response times, and activity levels, 3) Preparing Monthly Reports on several Project Areas, 4) Maintaining registration files of persons convicted of Sex Crimes, Narcotics, Arson, and Gang Offenders, and 5) Processing dozens of requests for statistical information and crime trends for the community, media, and other sources. FORWARD COMPLETED NOMINATION TO: National City Performance Recognition Program Human Resources Department Nominated by: Sgt. Mike Harlan, Signature: Investigations Division Supervisor, NCPD Date: June 30, 2005 Spring/Summer, 2005 To: Mayor and City Councilmembers From: Henry Abarbanel, City of Del Mar Re: SANDAG, Energy Working Group As a result of the energy crisis (not yet passed, but somewhat abated) SANDAG carried out a community based assessment of policies for energy generation, distribution, and pricing in the San Diego region. This resulted in a Regional Energy Strategy and then in the formation, in December, 2003, of the Energy Working Group (EWG) to implement this strategy. The EWG began its work in March 2004 with membership from each of the usual sources of elected officials: North Coastal Cities, North Inland Cities, South Coastal Cities, South Inland Cities, City of San Diego and County of San Diego, and added representatives from large businesses, SDG&E, small businesses, San Diego Regional Energy Office, Port of San Diego, San Diego Chamber of Commerce, UCAN, and SDSU. It has subsequently expanded to include UCSD and a regional business organization. Henry Abarbanel of Del Mar and Art Madrid of La Mesa have been Co - Chairs of EWG since March, 2004. EWG adopted as a specific goal the submission, along with SDG&E, of the California Public Utilities Commission (CPUC) mandated Long Term Resource Plan due in July, 2006. This is now to be a regional plan, not just a utility plan, incorporating the views of all the regional stakeholders..SDG&E and the rest of the EWG have studied the plan submitted to the CPUC in July, 2004, identified the critical policy and resource issues, and are now preparing the plan due in 2006 together. In the process of preparing this plan, EWG became aware of the requirement of the California Energy Commission (CEC) of a similar planning document, the Integrated Energy Policy Report (IEPR), due in 2005 which effectively is an "odd numbered year" plan which influences decisions of the State legislature and the CPUC. We expanded our activities to work with SDG&E to prepare this document as well. EWG accomplishes its goals through two subcommittees: Public Policy, chaired by Alan Ball of Qualcomm, and Resources, chaired by Steve Hoffman of the SD Chamber. Through this structure we identify critical policy issues on which SANDAG should take positions and weigh in at the State level for expressing regional views, and to organize our work with SDG&E on the planning for energy generation, distribution, and pricing questions. Some of EWG accomplishments and actions include: • Has selected, for its major focus, to submit, as a region, led by EWG and SDG&E, the CPUC mandated Long Term Resource Plan (LTRP). A workplan for this effort has been developed. It is the intention of EWG and SDG&E to present their regional, stakeholder based LTRP to the CPUC in July, 2006, together. In the past SDG&E has done this alone, and it retains the CPUC designated accountability for the LTRP. EWG and SANDAG add the substantial values of public discussion, scrutiny, and cooperation. The CEC IEPR has been added to this goal, and will be submitted for the SD region along with SDG&E in 2005. • Has initiated a pilot project for energy efficiency (EE) among SD region municipalities. The pilot City was chosen among four applicants to be Carlsbad and energy audit, matching grant, engineering, and implementation resources for EE will be focused there. If this is as successful as we expect, we will approach the CPUC or CEC for funds to carry out the same focused effort in all SD regional cities as rapidly as funds allow. EE is the number one goal of the CPUC in its energy strategy for California. This EWG effort is done in cooperation with the regional energy utility SDG&E. • Has represented the region in letters over the signature of the Chair of the SANDAG Board on issues ranging from long term planning, critical peak pricing, energy costs, transmission lines, renewable resources... to the CPUC. • Has represented the region in personal appearances of EWG members at CPUC, SDG&E and other relevant workshops and hearings. • Has initiated a working relationship with senior staff and commissioners of the CEC including attendance at EWG meetings. EWG is working on extending this to the CPUC as well • Has integrated previously conflicting entities and views on debating and presenting a unified view on energy planning, production, distribution, and overall policy for our region. • Has sent elected official members to meetings of several local City councils to convey to them the work EWG (and SANDAG) is engaged in on their residents' behalf and simultaneously sought input from these Councils for their views on the tasks EWG should address. • Has selected to sponsor, under EWG/SANDAG leadership, a series of workshops (see attached table) focusing on critical matters associated with planning for our energy future. The first workshop was held on the issue of transmission lines into the SD region on March 15•, 2005. The EWG has taken a leadership role in unifying, under the SANDAG banner, a broad spectrum of stakeholders in energy production, distribution, and pricing. The cooperation among former disputants has shown that there is a regional will to work together productively. EWG intends to foster that good will and use it for the advantage of San Diego's residents and businesses. It is the long term goal of EWG to partner with our regional utility SDG&E to include the voice of a broad spectrum of stakeholders in planning our energy future with an emphasis on energy efficiency, renewable energy sources, reliable energy generation, effective and constrained cost allocations of energy, and involvement of all residents in San Diego County through the action of local government where they live. We will integrate energy planning into the overall planning effort of SANDAG to achieve energy use reductions and efficiencies as we pursue smart growth policies through our region. EWG Sponsored Workshops 2005/06 Topic Date Comments/Timing Good discussion Involvement of local interests (UCAN, SDG&E, Duke Power, Baja California) and State interests: CPUC, ISO Transmission March 15, 2005 Summer 2005 Energy Issues May 4, 2005 CEC Summer Outlook reports tight supply margins in a hot summer CPUC report on Resource Adequacy due soon Offer ratepayers Energy Efficiency tools CEC/IEPR Border Issues May 18, 2005 CEC/EWG cosponsored this at SANDAG 2006 Long Term Resource Plan Kickoff Meeting June/July 2005 First step in public discussion of State required energy planning process Renewable Energy September, 2005 Local Renewable Energy Study Complete Associated with SD Regional Energy Office "Solar Week" Legislative Briefing October 27, 2005 Senators Chris Kehoe and Bill Morrow will Chair this workshop Presentation of Regional Energy Issues to local State Senators and Assemblypersons Develop input into 2006 legislative actions Climate Change December 12 or 13, 2005 Organize jointly with Scripps Institution of Oceanography, UCSD SDG&E BPL pilot project Advanced Metering and Broadband over Power Lines January/February 2006 City of National City, California COUNCIL AGENDA STATEMENT July 19, 2005 MEETING DATE AGENDA ITEM NO. 1 "ITEM TITLE PREPARED BY EXPLANATION INTERVIEWS AND APPOINTMENTS: SWEETWATER AUTHORITY A Michael R. Dalla DEPARTMENT City Clerk EXT. The Mayor has resigned his position on the Sweetwater Authority Board. The vacancy has been posted and advertised in compliance with State Law and City Council Policy and my now be filled. Any applications that are submitted will he distributed prior to the meeting. XX Environmental Review N/A MIS Approval (—Financial Statement None Approved By: Finance Director Account No. STAFF RECOMMENDATION Fill the vacancy BOARD / COMMISSION REC©MMEN ATION NA ATTACHMENTS ( Listed Below) Resolution No. None A-200 (Rev. 7/03) City of National City, California COUNCIL AGENDA STATEMENT July 19, 2005 MEETING DATE AGENDA ITEM NO. 2 ITEM TITLE PREPARED BY INTERVIEWS AND APPOINTMENTS: AD HOC COMMITTEE ON HOUSING Michael R. Dalia City Clerk DEPARTMENT EXT. EXPLANATION During a Public Workshop on Housing Issues the Mayor and Council indicated a desire to form an Ad Hoc Committee on Housing. To date, applications have been received from five individuals interested in serving on the committee. The Mayor requested that the applicatons received to date, be placed on this agenda. They are attached for your review. It is requested that the City Council provide direction on how they wish to proceed. Environmental Review xx_ N/A MIS Approval Financial Statement None Approved By: Finance Director Account No. STAFF RECOMMENDATION Provide direction on scheduling interviews and appointments. 'BOARD / COMMISSION RECOMMENDATION NA ATTACHMENTS ( Listed Below ) Resolution No. Applications A-200 (Rev. 7/03) CITY OF NATIONAL CITY APPLICATION FOR APPOINTMENT TO CITY BOARDS, COMMISSIONS, AND COMMITTEES ❑ Building Advisory & Appeals Board* O Civil Service Commission O Community & Police Relations Commission* 0 Housing & Community Development Committee O Library Board of Trustees ❑ Military, Civic and Special Events Advisory Board O Parks & Recreation Advisory Board ❑ Planning Commission CI AD %jo c Note: Applicants must beer dents and registered Name o L.—Pre: Home Address qS � g,.tos— Tel. No. ay.% • •3-n-,Ao Business Affiliation i=,,.��Q V C��Title C �� Business Address 4vt 03c. ofr Car Qa.1 Tel. No. 4 4• AI Length of residence in National City San Diego County �-c California Educational Background o`-s ai L .Cr4•c V C . S`1.--.1(ruy. Occupational Experience Ce Professional or technical organization memberships w p .� �--r w i — �'�• Gam. ,y r Civic or community experience, membership, or previous public service appointments: { 15 a s •.4* -V -s-K�+ , a A ,, o`^i e ` 11 c3 Est.•.; 4L .r 0.„�• u..2S Expe1rience or special knowledgegpertaining to�area of interest o .4y1;a PSer,,,•ca °,•�,�. m;w• _ 1 \'-0., t. aIJQ 'rib.— � L4.,.Lk L — 1-, a A-./1-41 C U'2' �+-,,t. 2m.—. O Port Commission ❑ Public Art Committee* ❑ San Diego County Water Authority O Senior Citizens Advisory Board O Street Tree & Parkway Committee ❑ Serra Library System Advisory Bd ❑ Sweetwater Authority ❑ Traffic Safety Committee to vote in the City of National City. Have you ever been convicted of a crime? No 10 Yes Date S lg • nS Signature Please feel free to provide additional information or letters of endorsement. Please return completed form to: City Clerk's Office • 1243 National City Blvd, National City CA 91950 Thank you for your interest in serving the City of National City. (This document is filed as a public document) *Residency requirements may not apply Revised July 15, 2004 Ad Hoc Affordable Housing Application —Addendum Environmental Health Coalition (EHC) is a non-profit environmental and social justice organization that has been working in the San Diego/Tijuana region for over 25 years. The organization has been active in National City for 14 years, where 600 of its members reside. The organization has become increasingly involved with affordable housing issues in the last 10 years, particularly in Barrio Logan and Chula Vista. Many EHC members in National City have expressed concerns about the ongoing affordability of housing, and have requested that EHC take an active role in relevent discussions. For this reason, EHC would like to be represented on the Ad Hoc Affordable Housing Committee by Tony LoPresti. Additionally, we are requesting that one of EHC's National City members be permitted to attend the meetings, and, pending the consent of the committee, gradually transition into LoPresti's position representing EHC. CITY OF NATIONAL CITY APPLICATION FOR APPOINTMENT TO CITY BOARDS, COMMISSIONS, AND COMMITTEES • Building Advisory & Appeals Board* ❑ Civil Service Commission -Community & Police Relations Commission* • Housing & Community Development Committee ❑ Library Board of Trustees 0 Military, Civic and Special Events Advisory Board ❑ Parks & Recreation Advisory Board ❑ Planning Commission AC-Fo-rdable, I-645/'/154cE 1-6c?ask f-o-fre. ❑ Port Commission ❑ Public Art Committee* O San Diego County Water Authority O Senior Citizens Advisory Board O Street Tree & Parkway Committee ❑ Serra Library System Advisory Bd ❑ Sweetwater Authority ❑ Traffic Safety Committee Note: Applicants must be residents and registered to vote in the City of National City. Name rgev.n6a-I-f icrQ, Home Address 7 L v P-x- £? • Business Affiliation Business Address �f•>rya%-i-h5� 5z18, Tel. No. 95,3 -z17i 3 aigifarch Title larieS4--in-Gl- Tel. No. 4 - 85`.6 Length of residence in National City / 7 San Diego County California 3 Educational Background /✓./, ALE, 41la.51-er Occupational Experience elit.55rePepre7 elp-, yei 5 er/ 4,/,4n,2 Professilnal or technical organization memberships f'as r 4� Sid, i>td eevs,,�� 2,:"iac/CGur4 �l / tan k.) LIT E c)J f. Civic or community experience, membership,hior previous public service appointments: 4 ,Z00 - NPv r:�mrriK/Iir� bBw5 r!D�fL Experience or special knowledge pertaining to area of interest: Have you ever been convicted of a crime? No Yes Date l4 --uny. zw.. Signature }2Cv Please feel free to provide additional information or letters of endorsement. Please return completed form to: City Clerk's Office 1243 National City Blvd, National City CA 91950 Thank you for your interest in serving the City of National City. (This document is filed as a public document) *Residency requirements may not apply Revised July 15, 2004 CITY OF NATIONAL CITY APPLICATION FOR APPOINTMENT TO CITY BOARDS, COMMISSIONS, AND COMMITTEES ❑ Building Advisory & Appeals Board* ❑ Civil Service Commission ❑ Community & Police Relations Commission* ® Housing & Community Development Committee ❑ Library Board of Trustees ❑ Military, Civic and Special Events Advisory Board ❑ Parks & Recreation Advisory Board ❑ Planning Commission f�c Cpp o 'al-rdzkIe F� `i29 ❑ Port Commission ❑ Public Art Committee* ❑ San Diego County Water Authority ❑ Senior Citizens Advisory Board ❑ Street Tree & Parkway Committee ❑ Serra Library System Advisory Bd ❑ Sweetwater Authority ❑ Traffic Safety Committee Note: Applicants must beresidents and registered to vote in the 6E1e-(e-/A ( OaVidi( Home Address ! , Tel. No. (6 (9) 1 7(-(- , 6 Business Affiliation Title Business Address Tel. No. Length of residence in National City 36,pnS. San Diego County 30yr.� California Educational Background ir:G2re/776 cr.K) ( • Name City of National City. Occupational Experience 2�-)/ 22( Professional or technical organization memberships / Trr /1(/ Gr/ s ({) ? /? Civic or community experience, membership, or previous public service appointments: I 7-700-S ( Experience or special knowledge pertaining to area of interest: cosh?9 (,©m (1j/t`l� Dru-/0 !'VIo d,HRi . Yes Signature . Have you ever been convicted of a crime? No 4'7- Date 6//2-//bc Please feel free to provide additional information or letters of endorsement. Please return completed form to: City Clerk's Office 1243 National City Blvd, National City CA 91950 Thank you for your interest in serving the City of National City. (This document is filed as a public document) *Residency requirements may not apply Revised July 15, 2004 CITY OF NATIONAL CITY APPLICATION FOR APPOINTMENT TO CITY BOARDS, COMMISSIONS, AND COMMITTEES D Building Advisory & Appeals Board* ❑ Civil Service Commission ❑ Community & Police Relations Commission* O Housing & Community Development Committee ❑ Library Board of Trustees O Military, Civic and Special Events Advisory Board ❑ Parks & Recreation Advisory Board ❑ Planning Commission • AFFovd,6/' A .r; ti9 T k/c, Note: Applicants must be residents Name ea ✓ c". Ca.c..g, ❑ Port Commission ❑ Public Art Committee* ❑ San Diego County Water Authority ❑ Senior Citizens Advisory Board ❑ Street Tree & Parkway Committee ❑ Serra Library System Advisory Bd ❑ Sweetwater Authority ❑ Traffic Safety Committee and registered to vote in the City of National City. Horne Address Zq35 Sa 1 d ✓�r� �T� 150ud� y / q o 7_ Tel. No.('&f t) c/ 7 (/ _ ' 307 Business Affiliation (mrc-s ce-/-ty Title 731--AP,, Business Address .s Sc{c, c 7g r 7i, Asti; ?/ s7 L Tel. No. 4474 �zP3 Length of residence in National City ohs San Diego County 3 / California z/J Educational Background 3A— r Occupational Experience c2 K y2S, X, £, Professional or technical organization memberships cr• �(,,x,)/ aP- ,,v,t- 7'»t , L.) c, 7 Civic or community experience, membership, or previous public service appointments: 4 Experience or special knowledge pertaining to area of interest: 3 yri-s /} & L.(eQ-y,t() r (A)r-rit,7 (l Have you ever been convicted of a crime? No Date 4 /as /2- Signature La ,,df wr r,uffn��O r,a„vim„u9 y�etiu ,f u7t 4 Yes wa- ' .d e7r�NJ g� ¢ co. 5 i, Please feel free to provide additional information or letters of endorsement. Please return completed form to: City Clerk's Office 1243 National City Blvd, National City CA 91950 Thank you for your interest in serving the City of National City. (This document is filed as a public document) *Residency requirements may not apply Revised July 15, 2004 CITY OF NATIONAL CITY APPLICATION FOR APPOINTMENT TO CITY BOARDS, COMMISSIONS, AND COMMITTEES ❑ Building Advisory & Appeals Board* E Port Commission ❑ Civil Service Commission IT Public Art Committee* ❑ Community & Police Relations Commission* ❑ San Diego County Water Authority ❑ Housing & Community Development Committee ❑ Senior Citizens Advisory Board ❑ Library Board of Trustees 0 Street Tree & Parkway Committee ❑ Military, Civic and Special Events Advisory Board 0 Serra Library System Advisory Bd ❑ Parks & Recreation Advisory Board 0 Sweetwater Authority ❑ Plannina Commission 0 Traffic Safety Committee Note: Applicants must be residents and registered to vote in the City of National City. Name Home Address 10 L . 1-l-v-e-e-� Tel. No. 4'17 - at) 60 Business Affiliation Ptri a\.c J C-P Title 4(_-S(-- Business Address Tel. No. Length of residence in National City 5 yv5 San Diego County ID �#nl�, • California ID t�,'G.fi-1-+� Educational Background 9 a t v Occupational Experience LI2' `' Professional or technical organization memberships 3 LW uW-t124- voriev i ;r��m; 4v�,vu�, Kra- ur2 3 °� htspaniGar . fltSti• c- 7 vonItik-tn� C Itr coMii_l* e4Sage, meeAn` Sip o Wear-0tlic servf a appointments: 4 Experience or special knowledge pertaining to area of interest: t �p "n Have you ever been convicted of a crime? No Yes J Date \(\(`-ow„(J�,� c9-05 Signature Please feel free to provide additional information or letters of endorsement. Please return completed form to: City Clerk's Office 1243 National City Blvd, National City CA 91950 Thank you for your interest in serving the City of National City. (This document is filed as a public document) *Residency requirements may not apply Revised July 15, 2004 ITEM #3 7/19/05 APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF JUNE 21, 2005 ITEM #4 7/19/05 City of National City Office of the City Clerk 1243 National City Blvd., National City, CA 91950-4397 Michael R. Dalla — City Clerk (619)336-4226 (619) 336-4229 To: Honorable Mayor and Council From: Michael Dalla, City Clerk Subject: Ordinance Introduction and Adoption It is recommended that the City Council approve the following motion as part of the Consent Calendar: "That the City Council waive reading of the text of all Ordinances considered at thismeeting and provide that such Ordinances shall be introduced and/or adopted after a reading of only the title". mrd City/ of National City, California COUNCIL AGENDA STATEMENT MEETING DATE July 19, 2005 AGENDA ITEM NO. %ITEM TITLE Resolution of the City of National City approving Change Order Number One to Heffler Company, Inc. for National City Blvd. 7`t' Street to 12th Street Improvements, Spec. No. 04-12, in the amount of S127,049.94 for additional removal and disposal of unsuitable material on 9t`' St., removal of railroad ties and additional paving overlay on National City Blvd. and authorizing the City Engineer to approve and sign the change order. PREPARED BY Alberto Griego DEPARTMENT Engineering EXT. 4386 5 EXPLANATION See attached Explanation. X Environmental Review N/A MIS Approval Financial Statement A��, The total budget for the project was estimated to be $852,814.48.Ap.proved By: Finance Director Funding for this Change Order is available through the Community Development Commission Account Number 900353. Account No. STAFF RECOMMENDATION Adopt the Resolution. A BOARD / COMMISSION R COMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. Resolution 2. Contract Change Order No. One 3. Exhibit A, B and C heft- A-200 (Rev. 7/03) RE: Resolution of the City of National City approving Change Order Number One to Heffler Company, Inc. for National City Blvd. 7th Street to 12th Street Improvements, Spec. No. 04-12, in the amount of $127,049.94 for additional removal and disposal of unsuitable material on 9th St., removal of railroad ties and additional paving overlay on National City Blvd. and authorizing the City Engineer to approve and sign the change order. Explanation: On March 15, 2005, by resolution No. 2005-56, the City Council awarded a contract in the amount of $656,011.14 to Heffler Company, Inc. for the National City Boulevard 7th Street to 12th Street Improvements, Specification No. 04-12 project. During excavation and removal of existing material for the new sidewalks at National City Boulevard and E. 9th Street unsuitable material was encountered for which extra excavation and materials testing were ordered. The testing confirmed that the existing material was unsuitable and proceeded to remove a 40 foot by 40 foot and 3 feet deep section and replace this with Class II Base Material. Total cost for this item is $9,686.25. Also, during the excavation of the median on National City Boulevard, to install new medians, median curb, and landscaping, existing railroad ties were discovered under several layers of asphalt and concrete. These ties did not contain spikes or tracks which are of historic or recycling value. The ties were removed and disposed of. Total cost for this item is $8,387.22. Additional grinding and overlay of AC pavements, traffic striping and utility adjustment from 7th St. to 8th St. and from Plaza Blvd. to 12th St. along National City Blvd. is requested due to deteriorated conditions of the existing pavement along National City Blvd. Total cost for this item is $108,976.47. Engineering staff is recommending the approval of a change order to Heffler Company, inc. in the amount of $127,049.94 for the addition of the Removal and Disposal of Unsuitable Material and Replacement with Class II Base, Removal and Disposal of Railroad Ties and Additional AC overlay along National City Blvd. The total amount of Contract Change Order Number One is $127,049.94, increasing the current cost of the project from $656,011.14 to $783,061.08. RESOLUTION 2005 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY ENGINEER TO EXECUTE CHANGE ORDER NO.1 IN THE AMOUNT OF $127,049.94 FOR THE NATIONAL CITY BOULEVARD 7TH STREET TO 12TH STREET IMPROVEMENTS PROJECT, SPECIFICATION NO. 04-12 WHEREAS, the contract for the National City Boulevard 7th to 12th Street Improvements, Specification No. 04-12 was awarded to Heffler Company, Inc. on March 15, 2005 by Resolution No. 2005-56; and WHEREAS, during the construction of this project unsuitable material was encountered for which extra excavation and materials testing were ordered; railroad ties were discovered under several layers of asphalt and concrete and were required to be removed; and additional grinding and overlay of AC pavements, traffic striping and utility adjustments were requested. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the City Engineer to execute Change Order No. 1 with Heffler Company, Inc. in the not to exceed amount of $127,049.94 for the National City Boulevard 7tn Street to 12 Street Improvements Project, Specification No. 04-12 PASSED and ADOPTED this 19th day of July, 2005. Nick Inzunza, Mayor AIIEST: Michael Della, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney CONTRACT CHANGE ORDER NO. 1 DATE: 7/19/05 PROJECT: National City Boulevard 7th to 12ih Street Improvements, Specification No. 04-12 TO: Patrick Heftier, President Heftier Company, Inc. 1800 McKinley Ave., Suite A National City, CA 91950 DESCRIPTION OF CHANGE: This change order is written to add work item numbers 43, 44 and 45 to the contract shown below). Original Contract Adjusted Contract No Item Unit Bid Qty Unit Price Amount Unit Price Amount 1 Mobilization LS 1 $34,285.00 $34,285.00 $34,285.00 $34,285.00 2 Traffic Stripping and Markings LS 1 $6,048.00 $6,048.00 $6,048.00 $6,048.00 3 Traffic Signage LS 1 $3,325.00 $3325.00 $3,325.00 $3325.00 4 Traffic Control LS 1 S100,000.00 $100,000.00 $100,000.00 $100,000.00 5 Adjust Existing Utilities to Grade LS 1 $2,000.00 $2,000.00 $2,000.00 $2,000.00 6 Pollution Control Measures LS 1 $2,500.00 $2,500.00 $2,500.00 $2,500.00 Replace Existing Utility to Grade EA 4 $500.00 $2,000.00 $500.00 $2,000.00 6 Clearing and Grubbing LS 1 $5,000.00 $5,000.00 $5,000.00 $5,000.00 9 Removal of Sidewalk and sub -grade SF 2,130 $2.78 $5,921.40 $2.78 $5,921.40 10 Removal of Street Section(up to 6.5" A.C./6" PCC) SF 10,430 $2.69 $28,056.70 $2.69 $28,056.70 11 Removal of Street Section (6.5" A.C.) SF 2,159 $2.34 $5,052.06 $2.34 $5,052.06 12 Removal of Curb and Gutter LF 180 $7.33 81,319.40 $7.33 $1,319.40 13 Remove existing street light EA 1 $1,500.00 $1,500.00 $1,500.00 $1,500.00 14 Digout Street Section (up to 6.5" AC/6" PCC) SF 1,390 $3.84 $5,337.60 $3.84 $5,337.60 15 8" Modified Median Curb LF 2,740 $14.80 $40,552.00 $14.80 $40,552.00 16 6" Type "G" Concrete Curb and Gutter LF 228 $16.31 $3,718.68 $16.31 $3,718.68 17 Class II Agregate Base CY 50 $42.13 $2,106.50 $42.13 $2,106.50 18 Crushed Miscellaneous Base CY 130 $34.03 $4,423.90 $34.03 $4,423.90 19 Dig -out Replacement (5" AC/12" Class II Base) SF 1,130 $6.90 $7,797.00 $6.90 $7,797.00 20 Replacement of AC Section Adjacent to Median (8" AC/4.5" Base) SF 4,1401 $7.74 $32,043.60 $7.74 $32,043.60 21 Pedestrian Ramps EA 2 $1,182.33 $2,364.66 $1,182.33 $2,364.66 22 1 %" AC Overlay TON S 230 $100.00 $23,000.00 $100.00 $23,000.00 23 Cold Plane Existing Pavement LF 2,178 $3.12 $6,795.36 $3.12 $6,795.36 Original Contract Adjusted Contract Page 1 CONTRACT CHANGE ORDER NO. 1 No Item Unit Bid Qty Unit Price Amount Unit Price Amount 24 Metal Bollards EA 7 $500.00 $3,500.00 $500.00 $3,50c,.,,J 25 Detectable Warning Pavers and Concrete Band LS 1 $2,746.20 $2,746.20 $2,746.20 $2,746.20 26 1" Irrigation Service with 1" Meter and Backflow Preventer LS 1 $2,500.00 $2,500.00 $2,500.00 $2,500.00 27 Trench and Resurface for Irrigation Main Line and Service LF 245 $20.00 $20,817.89 $20.00 $20,817.89 28 Colored Concrete Pavement in Median SF 2,347 $8.87 $26,15190 $8.87 $26,151.90 29 Sidewalk Unit Pavers SF 2,685 $9.74 $7,749.45 $9.74 $7,749.45 30 Broom Finish Colored Concrete Sidewalk SF 1,013 $7.65 $5,220.00 $7.65 $5,220.00 31 Tree Grate EA 4 $1,305.00 $9,822.30 $1,305.00 $9,822.30 32 Class "A" Topsoil CY 290 $33.87 $14,177.80 $33.87 $14,177.80 33 Tree 36 Inch Box EA 20 $708.89 $708.89 34 Palm 20 Foot Brown Trunk Height EA 8 $10,397.67 $83,181.36 $10,397.67 $83,181.36 35 Shrubs-5 Gallon Fine Grade in Landscaped Median EA 1,052 $16.94 $17,820.88 $16.94 $17,820.88 36 Fine Grade in Landscaped Median SF 5,200 $0.30 $1,560.00 $0.30 $1,560.00 37 Mulch CY 30 $44.70 $1,341.00 $44.70 $1,341.00 38 Root Barrier LF 420 $6.65 $2,793.00 $6.65 $2,793.00 39 Complete Irrigation System for Trees, shrubs, and Sod LS 1 $56,276.41 $56,276.41 $56,276.41 $56,276.41 40 Soil Test LS 1 S500.00 $500.00 $500.00 $50L 41 Maintenance (90 Days) LS 1 $2,106.09 $2,106.09 $2,106.09 $2,106.09 42 Traffic Signal and Street Lighting Installation LS 1 $67,700.00 $67,700.00 $67,700.00 $67,700.00 Subtotals $656,011.14 $656,011.14 Extra Work Items 43 Removal and Dumping of Unsuitable Material and Replacement with Class II Base on NCB at 9th St. LS 1 N/A N/A $9,686.25 $9,686.25 44 Removal of Railroad Ties on NCB LS 1 N/A N/A $8,387.22 $8,387.22 45 Additional 1.5" grind, overlay, petromat, traffic loops adjust utilities and striping from 7 to 8th St. and from Plaza to 12th St. on National City Blvd. LS 1 N/A N/A $108,976.47 $108,976.47 Totals $656,011.14 $127,049.94 $783,061.08 DISCUSSION: The lump sum price for Line Item No. 43, Removal and Disposal of Unsuitable Material and Replacement with Class II Base on National City Boulevard at 9th Street is added at Page 2 CONTRACT CHANGE ORDER NO. 1 the City's request to provide compensation to the contractor for the additional removal and dumping of unsuitable materials encountered at the intersection of 9th Street and National City Blvd. The removal covered and area of 40 by 40 feet and went as far as 3 feet deep. The lump sum price includes labor, equipment, and materials per Exhibit A. The lump sum price for Line Item No. 44, Removal and Disposal of Railroad Ties on National City Boulevard is added at the City's request to provide compensation to the contractor for the additional removal of existing railroad ties found buried in the median of National City Boulevard. Staff contacted Railroad Historic Groups of which one representative came to see the ties and mentioned that they had no historic value, although these are supposed to be the original railroad track ties from the National City and Otay Railway. The lump sum price includes labor, equipment and materials per Exhibit B. The lump sum price for line item No. 45, Additional 1.5" grind, overlay, petromat, traffic loops, adjust utilities and traffic stripping is added at the City's request to provide compensation to the contractor for additional pavement overlay on National City Blvd. from 7th to 8th Streets and Plaza Blvd. to 12th Street along National City Blvd. which have been found to have deteriorated pavement beyond its useful life. This also includes adjustment of utilities to grade. The lump sum price includes labor, equipment, and materials per Exhibit C. CONTRACT ADJUSTMENT: As a result of this change order the contract price is adjusted as follows: 1. The contract price is increased in the amount of $127,049.94 from the current contract price of S656,011.14 to a new contract price of $783,061.08. 2. The contract time is increased by thirty (30) working days. The contract completion date was previously established as Tuesday August 9, 2005. The new contract completion date is therefore established as Thursday, September 22, 2005. This change order shall be considered full compensation for furnishing and installing the materials, labor, tools and equipment, profit, overhead, and all incidentals for performing the work described above. Heffler Company, Inc. will not be entitled to damages or additional payment for delays as described in the 1997 edition of the Standard Specifications for Public Works Construction, Section 6-6.3, for performing the work as described above. Page 3 CONTRACT CHANGE ORDER NO. 1 RECOMMENDED FOR APPROVAL BY: Alberto Griego, Assocto vil E gineer APPROVED BY: Jvl d7, Z©c9. Dat1 /$/ Mr. Patrick Heffler, President Date Heffler Company, Inc. Ms. Gina Tarantino Date Heffler Company, Inc. Stephen M. Kirkpatrick, City Engineer Date Page 4 LI RAILROAD TIES REMOVAL IN CONCRETE MEADIANS TASK PROPOSAL PROJECT NAME NATIONAL CITY BLVD. WORKING DAYS 3 ITEM DESCRIPTION SCOPE TOTAL 1 $ 2 T & M TICKET 4/26/05 REMOVAL RAILROAD TIES $ 870.6( 3 T & M TICKET 4/27/05 REMOVAL RAILROAD TIES $ 2,288.8- 4 T & M TICKET 4/28/05 REMOVAL RAILROAD TIES $ 951.35 5 T & M TICKET 4/29/05 REMOVAL RAILROAD TIES _ $ 1,939.55' 6 T & M TICKET 5/2/05 REMOVAL RAILROAD TIES $ 1,135.04 7 $ - 8 _ $ - 9 $ - 10. $ - 11 $ - 12 $ - 13 $ - 14 $ - 15 $ - 16 $ - 17 $ - 18 $ - 19 $ - 20 $ - 21 $ - 22 $ - 23 $ - 24 $ - 25 $ - 26 $ - 27 $ - 28 $ -. 29 $ - 30 $ - 31 SUBTOTAL ITEMS 1 - 30 $ 7,185.45 32 OVERHEAD & MARKUP 15% $ 1,077.82 33 SUBTOTAL INCLUDING OH & P $ 8,263.27 34 BONDS @ 1.5% $ 123.95 35 TOTAL $ 8,387.22 36 FIELD ORDERS / CONTINGENCIES APPROVAL AND NOTICE TO PROCEED BY: HEFFLER COMPANY, INC DATE: BY: NAME & TITLE: NAME & TITLE: 1800 Mckinley Avenue, ste.A National City, Ca.91950 619-336-0800 Fax 619-336-0806 5 E V V t_ PROPOSAL WORKSHEET T & M TICKET 512/05 QUANTITIES: LABOR W/BURDEN HRS TROATTEL PER HOUR EQUIPMENT W/FUEL HRS TOTAL RATE PER HOUR MATERIALS SUBCONTRACTORS 8 8 QTY CLASS RATE QTY TYPE RATE DESCRIPTION QTY UOM UP TOTAL DESCRIPTION 05 FOREMAN 50.00 25.00 0 CONC.TRUCK 28.00 0.00 CLASS 2 BASE 0 TN 13.50 0.00 .. 0.00 0 OPERATOR 57.51 0.00 0 IRR.UTLTY TRK 24.50 0.00 CMB BASE 0 TN 12.10 0.00 '. 0.00 0 PIPELAYER 45.00 0.00 0 1 TN CREW TRK 10.50 0.00 CTB BASE 0 TN 17.65 0.00 0.00 0 IRR.JOURNY 42.01 0.00 0 3,'4 TN TRK 8.25 0.00 3/4" ROCK 0 TN 16.25 0.00 0.00 1 LAB.GRP.1 41.57 41.57 1 I FLATBED TRK 22.00 22.00 SE3O SAND 0 TN 17.00 0.00 0.00 G' CONC. MASON 41.98 0.00 0 BOBTAIL TRK 24.50 0.00 2500 CONCRETE 0 CY 85.00 0.00 0.00 BLOCK MASON 43.12 0.00 0 10 WHEELER 36.00 0.00 3250 CONCRETE 0 CY 90.00 0.00 0.00 0 BLOCK TENDR. 36.87 0.00 0 H2O TRK 31.25 0.00 2 SACK SLURRY 0 CY 80.00 0.00 0.00 0 IRON WRKR 54.78 0.00 0.5 BACKHOE 28.50 14.25 CONC.COLOR 0 CY 50.00 0.00 0.00 0 GRADE CHKR 45.00 0.00 0 BOBCAT 25.00 0.00 REBAR 18" OC 0 SF 0.75 0.00 0.00 0 0.00 0 SKIPLOADER 23.80 0.00 WWMESH 0 SF 0.35 0.00 0.00 0 0 00 0 MINI EXCAVTR 25.80 0.00 REBAR LF 0 LF 0.30 0.00 0.00 0 0.00 0 TRENCHER 26.35 0.00 SOIL AMENDMNTS 0 SF 0.12 0.00 0.00 0 0.00 0 RIDEON ROLLR 75.00 0.00 SOD 0 SF 0.35 0.00 0.00 0 0.00 0 WBEHIND RLLR 37.50 0.00 HYDROSEED 0 SF 0.11 0.00 0.00 0 0.00 0 BRKER ATTACH 33.79 0.00 MULCH 2" 0 SF 0.16 0.00 0.00 0 0.00 0 END DUMP 90.00 0.00 1 GAL SHRUBS 0 EA 3.50 0.00 0.00 0 0 00 0 950 W.LDR 130.00 0.00 5 GAL SHRUBS 0 EA 8.00 0.00 0.00 0 0.00 0 953 T LDR 140.00 0.00 24" BOX TREE 0 EA 150.00 0.00 0.00 0 0.00 0 SCRAPER 165.00 0.00 36" BOX TREE 0 EA 410.00 0.00 0.00 0 0.00 0 140G BLADE 125.00 0.00 G.C. FLATS 18" O.C. 0 SF 0.12 0.00 0.00 0 0 00 0 325 EXCAVTR 175.00 0.00 IRR.MATERIALS 0 LS 0.00 0.00 0.00 0.00 C 0.00 DRAIN.MA.TRLS 0 LS 0.00 0.00 0.00 0 0 00 0 0.00 DUMP FEES DEMO 1 EA 312.5 312.48 0.00 0 0.00 0 0 OC 0 0.00 0.00 0 0.00 0 0 00 0 0.00 0.00 0 C 00 0 0.00 0 0.00 0.00 TOTAL LABOR RATE PER HOUR 66.57 TOTAL EQUIP RATE PER HOUR 36.25 SUBTOTAL MATERIALS 312.48 TOTAL LABOR W/ BURDEN TOTAL EQUIPMENT TAX 7.75,, $ - TOTAL SUBS $ 532.56 $ 290.00 TOTAL $ 312.48 $ - TOTAL LABOR + EQUIPMENT + MATERIALS + SUBS 1 l35,04' HEFFLER DAILY EXTRA WORK REPORT / FIELD DIRECTIVE AUTHORIZATION PROJECT NAME DESCRIPTION OF DIRECTED FIELD CHANGE ;,oNfiL (Ji 7 ; mo�R r X7.9,z,-2,)19 4 72 s ,-/d,-� PROJECT NUMBER K:4") 6('.^ce e 7%7//,9 /0 . ji-ze v/%92 ll FIELD CHANGE WILL BE PAYED BY (CIRCLE ONE) : T & M�y1VIT PRICE, LUMP SUM $ AUTHORIZATION TO PROCEED : DATE 5 2/e) / LABOR CLASS HRS RATE OT HRS. OT RATE TOTAL / ,Dren1 fl'L- _ _ 1�AbDI1 SUB -TOTAL LABOR LABOR SURCHARGE(BURDEN) % TOTAL LABOR PLUS BURDEN ( A ) EQUIPMENT HOURS RATE TOTAL /-I 4 /l 47/ `e `1 _ TOTAL EQUIPMENT ( B MATERIALS QTY RATE _ TOTAL OLrrp Fe'.S / 7'6066 /5/ga TOTAL MATERIAL + TAX @ % ( C SUBCONTRACTOR WORK PERFORMED QTY RATE TOTAL TOTAL SUB CONTRACT ( D ) APPROVED FOR PAYMENT SUB-TOTAL(A)+(B)�(C)+(D) MARKUP ON LABOR(A) HEFFLER SIGNATURE: . % MARKUP ON EQUIP ( B ) % MARKUP ON MATERIALS (C ) CLIENT SIGNATURE: /' ,_ % MARKUP ON SUBS ( D ) SUB -TOTAL DATE: S//J 4.'/, c-- % BOND & INSURANCE TOTAL WHITE: TO CLIENT YELLOW: MAIN OFFICE COPY O PINK. PPOJECT MANAGEMENT FILE OTAY LANDFILL , 1700 MAXWELL RD CHULA VISTA CA 91911 00099? CASH AND CHECK CUSTOMER Contract: CASH COMMERCIAL (T TICKET: , :,. cbi I7 S GRID ANSEL. WEIGHMASTER DATF,IN c May 2005 S.2Ela"m DAT U ;Av 2005 1g ,- 4E 9A ROLL OFF REFERENCE ORIGIN 'NATIONAL CITY 00 Gross Weight. 20,740.00 LB Stored Tare Wight 14,620.00 LB Net Weight 6,120.00 LEI. 3.06 TN Inbound - SCALE TICKET QTY. UNIT DESCRIPTION RATE EXTENSION. TAX TOTAL :3.06 1,00 TN LD 01 r y. • SOLID WASTE ENVIRONMENTAL FEE c2 00 $1 . 54 $159.1E $1.54 $ 0 .0 0 $0.01 $159.12 $1..54 TENDS CHANGE CHECKt,76p An Equal Opportunity Employer M,FDN SIGNATURE OTAY LANDFILL' i700 IIAXI4E3„.L 3: sm 91911 CASH ANI) CHEC K aisTomEr,! Contr,i:tct:: GATE RATE Gros.3 Ste QTY. LINIT F.39 'TN :L.. (X) (...1.) GRID WEIGHMASTER VEM9I-9 REFERENCE ROLL OFT ORIGIN NA -TONAL. CITY weight :) .400 00 <:".0 DESCRIPTION SOLID WASTE ENVIRONMENTAL FEE An Equal Opportunity Employer M/F/DN SIGNATURE 14xxv.td - RATE „ EXTENSION• TAX TOTAL : • <X> 1:.1„ C1-1,t1ff4 CHECK:NC") PROPOSAL W.ORKSHEET CKET 4t29I0'5 H EFFLER QUANTITIES: WIBURDEN HRS TOTAL RATE PER EQUIPMENT HRS TOTAL RA MATERIALS SUBCONTRACTORS LABOR 8 W/FUEL 8 HOUR DESCRIPTION QTY UOM UP TOTAL DESCRIPTION QTY CLASS RATE HOUR QTY TYPE RATE 0.63 FOREMAN 50.00 31.25 0 CONC.TRUCK 28.00 0.00 CLASS 2 BASE 0 TN 13.50 • 0.00 0.00 1 OPERATOR 57.51 57.51 0 IRR UTLTY TRK 24.50 0.00 CMB BASE 0 TN 12.10 D.00 0.00 0 PIPELAYER 45.00 0.00 0 1 TN CREW TRK 10.50 0.00 CTB BASE 0 TN 17.65 0.00 0.00 0 IRR_JOURNY 42.01 0.00 0 3i4 TN TRK 8.25 0.00 3/4" ROCK 0 TN 16.25 0.00 0.00 1.75 LAB GRP.1 41.57 72.75 1 FLATBED TRK 22.00 22.00 SE30 SAND 0 TN 17.00 0.00 0.00 CONC. MASON 41 98 0.00 0 BOBTAIL TRK 24.50 0.00 2500 CONCRETE 0 CY 85.00 0.00 0.00 BLOCK MASON 43.12 0.00 0 10 WHEELER 80.00 0.00 3250 CONCRETE 0 CY 90.00 0.00 0.00 0 BLOCK TENDR. 36.87 0.00 0.38 ACKHOE W BREAKE 56.25 21.09 2 SACK SLURRY 0 CY 80.00 0.00 0.00 0 IRON WRKR 54.78 0 00 0.63 BACKHOE 28.50 17.96 CONC.COLOR 0 CY 50.00 0.00 0.00 0 GRADE CHKR 45 00 0.00 0 BOBCAT 25.00 0.00 REBAR 18" OC 0 SF 0.75 0.00 0.00 0 0.00 0 SKIPLOADER 23.80 0.00 WWMESH 0 SF 0.35 0.00 0.00 0 0.00 0 MINI EXCAVTR 25.80 0.00 REBAR LF 0 LF 0.30 0.00 0.00 0 0.00 0 TRENCHER 26.35 0.00 SOIL AMENDMNTS 0 SF 0.12 0.00 0.00 0 0.00 0 RIDEON ROLLR 75.00 0.00 SOD 0 SF 0.35 0.00 0.00 0 0.00 0 WBEHIND RLLR 37.50 0.00 HYDROSEED 0 SF 0.11 0.00 0.00 0 0.00 0 BRKER ATTACH 33.79 0.00 MULCH 2" 0 SF 0.16 0.00 0.00 0 0.00 0 END DUMP 90.00 0.00 1 GAL SHRUBS 0 EA 3.50 0.00 0.00 0 0.00 0 950 W.LDR 130.00 0.00 5 GAL SHRUBS 0 EA 8.00 0.00 0.00 0 0.00 0 953 T.LDR 140.00 0.00 24" BOX TREE 0 EA 150.00 0.00 0.00 0 0.00 0 SCRAPER 165.00 0.00 36" BOX TREE 0 EA 410.00 0.00 0.00 0 0.00 0 140G BLADE 125.00 0.00 G.C. FLATS 18" O.C, 0 SF 0.12 0.00 0.00 +� 0.00 0 325 EXCAVTR 175.00 0.00 IRR.MATERIALS 0 LS 0.00 0.00 0.00 { 0.00 0 0.00 DRAIN.MATRLS 0 LS 0.00 0.00 0.00 0 0.00 0 0.00 DUMP FEES DEMO 1 EA 159.1 159.10 0.00 0 0.00 0 0.00 0 0.00 0.00 0 0.00 0 0.00 0 0.00 0.00 0 0.00 0 0.00 0 0.00 " 0.00 TOTAL LABOR RATE PER HOUR 161.51 _ TOTAL EQUIP RATE PER HOUR 61.05 SUBTOTAL MATERIALS 159.10 TOTAL LABOR W/ BURDEN TOTAL EQUIPMENT TAX 7.75% $ - TOTAL SUBS $ 1,292.06. $ 488.39 TOTAL $ 1:59.10 $ TOTAL LABOR + EQUIPMENT + MATERIALS + SUBS 1,93955 HEFFLER DAILY EXTRA WORK REPORT,/ FIELD DIRECTIVE AUTHORIZATION PROJECT NAME DESCRIPTION OF DIRECTED FIELD CHANGE j/4'%innV G/ Z % rrl 6.-9Z_ Qr / .,/Ili/2c),9 J ////eo_ /'e),d7 PROJECT NUMBER] l/I,CJ e C �Q/� / - �Q 3 FIELD CHANGE WILL BE PAYED BY (CIRCLE ONE) : T 8 M NIT PRICE, LUMP SUM $ AUTHORIZATION TO PROCEED : DATE: /,/2 9/077 LABOR CLASS HRS RATE _ OT HRS. OT RATE TOTAL / 62 r7 /"`'' j /_r�a/1 3 / n,6U g � � �2 K SUB -TOTAL LABOR LABOR SURCHARGE(BURDEN) % TOTAL LABOR PLUS BURDEN ( A EQUIPMENT HOURS RATE TOTAL Y//Ge -//lk> 4' 3 T7.3/ TOTAL EQUIPMENT ( B ) MATERIALS QTY RATE TOTAL L�arn� tip - / /S /5-S =G TOTAL MATERIAL + TAX @ % ( C ) SUBCONTRACTOR WORK PERFORMED QTY RATE TOTAL TOTAL SUB CONTRACT ( D APPROVED FOR PAYMENT SUB -TOTAL (A) + (B) + (C) + (D ) % MARKUP ON LABOR( A) HEFFLER SIGNATURE: % MARKUP ON EQUIP (B ) MARKUP ON MATERIALS (C ) CLIENT SIGNATUREI' ,�� _ _. % MARKUP ON SUBS ( D ) % SUB -TOTAL DATE: 9/ c--- % BOND & INSURANCE TOTAL WHILE TO CLIENT YELLOW: MAIN OFFICE COPY // PINK: PROJECT MANAGEMENT FILE � OTAY LAN}FIU^ 179>0 MAC:IA V.L]~ RD V[STA CA z, (X)O?99 CUSll]MLJ/ [��rrtract: CAS�| <%]HMEF��IAL smo � WEIGHMASTER DATE IN ^ 29 � il 20(Y� � TIME A. �o DATE Qy ROLL OFF REFERW.CE \� X omo* , NATIONAL CITY I, - x Gross Weight 2O,68O,OO LB Stored Tare Weight 14,620.00 LB m, 3^O8 UNIT TN LD osoon/prmN O1 S[8'ID WAS7I� A� Eqjoppfti,�ty E�*.y�,miFIDN o/nm«ronc $52.O0 EXTENSION * 15/"56 nm $157"56 / � ! HEFFLER PROPOSAL WORKSHEET ICKET 4/28/05 QUANTITIES: LABOR W/BURDEN HRSTOTAL TOTAL EQUIPMENT W/FUEL HRS MATERIALS SUBCONTRACTORS 2.5 PER 2.5RATE PER QTY CLASS RATE HOUR QTY TYPE - RATE HOUR DESCRIPTION QTY UOM UP TOTAL DESCRIPTION 1 FOREMAN 50.00 50.00 0 CONC.TRUCK 28.00 0.00 CLASS 2 BASE 0 TN 13.50 0.00 0.00 1 OPERATOR 57.51 57.51 0 IRR.UTLTY TRK 24.50 0.00 CMB BASE 0 TN 12.10 0.00 0.00 0 PIPELAYER 45.00 0.00 0 1 TN CREW TRK 10.50 0.00 CTB BASE 0 TN 17.65 0.00 0.00 0 IRR.JOURNY __ 42.01 0.00 0 3/4 TN TRK 8.25 0.00 3/4" ROCK 0 TN 16.25 0.00 0.00 4 '^ LAB.GRP.1 41.57 166.28 1 FLATBED TRK 22.00 22.00 SE30 SAND 0 TN 17.00 0.00 0.00 CONC. MASON 41.98 0.0D 0 BOBTAIL TRK 24.50 0.00 2500 CONCRETE 0 CY 85.00 0.00 0.00 BLOCK MASON 43.12 0.00 0 10 WHEELER 80.00 0.00 3250 CONCRETE 0 CY 90.00 0.00 0.00 0 BLOCK TENDR. 36.87 0.00 1 ACKHOE W BREAKE 56.25 56.25 2 SACK SLURRY 0 CY- 80.00 0.00 0.00 0 IRON WRKR 54.78 0.00 1 BACKHOE 28.50 28.50 CONC.COLOR 0 CY 50.00 0.00 0.00 0 GRADE CHKR 45.00 0.00 0 BOBCAT 25.00 0.00 REBAR 18" OC 0 SF 0.75 0.00 0.00 0 0.00 0 SKIPLOADER 23.80 0.00 WWMESH 0 SF 0.35 0.00 0.00 0 0.00 0 MINI EXCAVTR 25.80 0.00 REBAR LF 0 LF 0.30 0.00 0.00 0 0.00 0 TRENCHER 26.35 0.00 SOIL AMENDMNTS 0 SF 0.12 0.00 0.00 0 0.00 0 RIDEON ROLLR 75.00 0.00 SOD 0 SF 0.35 0.00 0.00 0 0.00 0 WBEHIND RLLR 37.50 0.00 HYDROSEED 0 SF 0.11 0.00 0.00 0 0.00 0 BRKER ATTACH 33.79 0.00 MULCH 2" 0 SF 0.16 0.00 0.00 0 0.00 0 END DUMP 90.00 0.00 1 GAL SHRUBS 0 EA 3.50 0.00 0.00 0 0.00 0 950 W.LDR 130.00 0.00 5 GAL SHRUBS 0 EA 8.00 0.00 0.00 0 0.00 0 953 T.LDR 140.00 0.00 24" BOX TREE 0 EA 150.00 0.00 0.00 0 0.00 0 SCRAPER 165.00 0.00 36" BOX TREE 0 EA 410.00 0.00 0.00 0 0.00 0 140G BLADE 125.00 0.00 G.C. FLATS 18"0.C. 0 SF 0.12 0.00 0.00 0.00 0 325 EXCAVTR 175.00 0.00 IRR.MATERIALS 0 LS 0.00 0.00 0.00 0.00 0 0.00 DRAIN.MATRLS 0 LS 0.00 0.00 0.00 0 0.00 0 0.00 DUMP FEES DEMO 0 EA 135.0 0.00 0.00 0 0.00 0 0.00 0 0.00 - 0.00 0 0.00 0 0.00 0 0 00 0.00 0 0.00 0 0.00 0 0.00 0.00 TOTAL LABOR RATE PER HOUR 273.79 TOTAL EQUIP RATE PER HOUR 106.75 SUBTOTAL MATERIALS 0.00 TOTAL LABOR W/ BURDEN TOTAL EQUIPMENT TAX 7.75% $ - TOTAL SUBS $ 684.48 $ 266.88 TOTAL $ - TOTAL LABOR + EQUIPMENT + MATERIALS + SUBS HEFFLER DAILY EXTRA WORK REPORT / FIELD DIRECTIVE AUTHORIZATION PROJECT NAME DESCRIPTION OF.DIRECTED FIELD CHANGE PROJECT NUMBER ['j2,JL%af G' ,t1//9.A i-72,tivi9 ti - 17Q :3 ,l75 FIELD CHANGE WILL BE PAYED BY (CIRCLE ONE) : & M IT PRICE, LUMP SUM $ AUTHORIZATION TO PROCEED : DATE: Lf%Z� fFii LABOR CLASS HRS RATE OT HRS. OT RATE TOTAL 1-,7 h r) ( 1, 4 2,5 Ofnr-A2rqrd4 2,5 SUB -TOTAL LABOR LABOR SURCHARGE ( BURDEN) TOTAL LABOR PLUS BURDEN (A ) EQUIPMENT HOURS RATE TOTAL 43#1e h/ Rr- 4 E 2, c ,/..//// ,�/ti /z.) Z,S TOTAL EQUIPMENT ( B) MATERIALS QTY RATE TOTAL TOTAL MATERIAL + TAX @ % ( C ) SUBCONTRACTOR WORK PERFORMED QTY _ RATE TOTAL TOTAL SUB CONTRACT ED ) APPROVED FOR PAYMENT SUB-TOTAL(A)+(B)+(C)+(D) MARKUP ON LABOR(A) HEFFLER SIGNATURE: % MARKUP ON EQUIP ( B ) - % MARKUP ON MATERIALS (C ) 'l'--____._ CLIENT SIGNATURE: ,0 % MARKUP ON SUBS (D ) ' SUB -TOTAL DATE: /7 c % BOND 8 INSURANCE TOTAL WHI TF. TO CLIENT YELLOW. MAIN OFFICE COPY PINK. PROJECT MANAGEMENT FILE PROPOSAL WORKSHEET -TICKET 4/27105 QUANTITIES: LABOR WIBURDEN HRS TROi4TTE EQUIPMENT W/FUEL HRS TOTAL MATERIALS SUBCONTRACTORS 6 PER 6 PER QTY CLASS RATE HOUR QTY TYPE RATE HOUR DESCRIPTION QTY UOM UP TOTAL DESCRIPTION 1 FOREMAN 50.00 50.00 0 CONC.TRUCK 28.00 0.00 CLASS 2 BASE 0 TN 13.50 0.00 0.00 1 OPERATOR 57.51 57.51 0 IRR.UTLTY TRK 24.50 0.00 CMB BASE 0 TN 12.10 0.00 ^. 0.00 0 PIPELAYER 45.00 0.00 0 1 TN CREW TRK 10.50 0.00 CTB BASE 0 TN 17.65 0.00 '` 0.00 0 IRR.JOURNY 42.01 0.00 0 • 3/4 TN TRK 8.25 0.00 3/4" ROCK 0 TN 16.25 0.00 0.00 3 LAB.GRP.1 41.57 124.71 0 FLATBED TRK 22.00 0.00 SE30 SAND 0 TN 17.00 0.00 ' ` 0.00 114117 CONC. MASON 41.98 0.00 1 - BOBTAIL TRK 24.50 24.50 2500 CONCRETE 0 CY 85.00 0.00 0.00 BLOCK MASON 43.12 0.00 0.5 10 WHEELER 80.00 40.00 3250 CONCRETE 0 CY 90.00 0.00 0.00 0 BLOCK TENDR. 36.87 0.00 1 ' ACKHOE W BREAKE 56.25 56.25 2 SACK SLURRY 0 CY 80.00 0.00 0.00 0 IRON WRKR 54.78 0.00 1 BACKHOE 28.50 28.50 CONC.COLOR 0 CY 50.00 0.00 0.00 0 GRADE CHKR 45.00 0.00 0 BOBCAT 25.00 0.00 REBAR 18" OC 0 SF 0.75 0.00 0.00 0 0.00 0 SKIPLOADER 23.80 0.00 WWMESH 0 SF 0.35 0.00 0.00 0 0.00 0 MINI EXCAVTR 25.80 0.00 REBAR LF 0 LF 0.30 0.00 0.00 0 0.00 0 TRENCHER 26.35 0.00 SOILAMENDMNTS 0 SF 0.12 0.00 0.00 0 0.00 0 RIDEON ROLLR 75.00 0.00 SOD 0 SF 0.35 0.00 0.00 0 0.00 0 WBEHIND RLLR 37.50 0.00 HYDROSEED 0 SF 0.11 0.00 0.00 0 0.00 0 BRKER ATTACH 33.79 0.00 MULCH 2" 0 SF 0.16 0.00 0.00 0 0.00 0 END DUMP 90.00 0.00 1 GAL SHRUBS- 0 EA 3.50 0.00 0.00 0 0.00 0 950 W.LDR 130.00 0.00 5 GAL SHRUBS 0 EA 8.00 0.00 0.00 0 0.00 0 953 T.LDR 140.00 0.00 24" BOX TREE 0 EA 150.00 0.00 0.00 0 0.00 0 SCRAPER 165.00 0.00 36" BOX TREE 0 EA 410.00 0.00 0.00 0 0.00 0 140G BLADE 125.00 0.00 G.C. FLATS 18"O.C. 0 SF 0.12 0.00 0.00 0.00 0 325 EXCAVTR 175.00 0.00 IRR.MATERIALS 0 LS 0.00 0.00 0.00 0.00 0 0.00 DRAIN.MATRLS 0 LS 0.00 0.00 - 0.00 0 0.00 0 0.00 DUMP FEES DEMO 0 EA 135.0 0.00 0.00 0 0.00 0 0.00 0 0.00 0.00 0 0.00 0 ().00 0 0.00 0.00 0 TOTAL 0.00 0 0.000.00 0 0.00 LABOR RATE PER HOUR 232.22 TOTAL EQUIP RATE PER HOUR 149.25 SUBTOTAL MATERIALS 0.00 TOTAL LABOR W/ BURDEN TOTAL EQUIPMENT TAX 7.75% $ - TOTAL SUBS $ 1,393.32 $ 895.50 TOTAL $ TOTAL LABOR + EQUIPMENT + MATERIALS + SUBS HEFFLER DAILY EXTRA WORK REPORT / FIELD DIRECTIVE AUTHORIZATION PROJECT NAME DESCRIPTION OF DIRECTED FIELD pHANGE - 1/6C // -E 7 / /hrn6✓/-( _Pr % l /2C D ^e.5 rU/71 PROJECT NUMBER (OA/ 1-1 - 6 C" / /1 /V /, /N-- D t,'' 9 f- 603 FIELD CHANGE WILL BE PAYED BY (CIRCLE ONE) T 8 MM NIT PRICE, LUMP SUM $ AUTHORIZATION TO PROCEED : DATE 1// Z %/ O LABOR CLASS HRS RATE OT HRS. OT RATE _ TOTAL j/,bo1 4 Ls3hoQ 6 SUB -TOTAL LABOR LABOR SURCHARGE ( BURDEN) TOTAL LABOR PLUS BURDEN ( A EQUIPMENT HOURS _ RATE TOTAL 46J/--/.J `v 14--, / TOTAL EQUIPMENT (B ) MATERIALS QTY RATE TOTAL /7--)/-1J0 -/5/7 /-(--//'? d �rl - ? ,1 L (O niVO/Ci/' TOTAL MATERIAL + TAX @ % (C ) SUBCONTRACTOR WORK PERFORMED QTY RATE TOTAL TOTAL SUB CONTRACT ( D) APPROVED FOR PAYMENT SUB -TOTAL (A) + (B) + (C) + (D ) MARKUP ON LABOR( A) HEFFLER SIGNATURE: /,G-(7 % MARKUP ON EQUIP ( B ) / % MARKUP ON MATERIALS (C ) -‘- % MARKUP ON SUBS (D ) CLIENT SIGNATURE /. _ , ;- 4 SUB -TOTAL DATE: 7/ BOND & INSURANCE TOTAL WHITE TO CLIENT YELLOW. MAIN OFFICE COPY PINK PROJECT MANAGEMENT FILE PROPOSAL WORKSHEET & M TICKET 4/26/05 H EFFLER QUANTITIES: LABOR W!BURDEN HRS TOTAL RPAERE HOUR EQUIPMENT W/FUEL HRS TOTAL RPAER HOUR MATERIALS SUBCONTRACTORS 3 3 QTY CLASS RATE QTY TYPE RATE DESCRIPTION QTY UOM UP TOTAL DESCRIPTION 0 FOREMAN I 50.00 0.00 0 CONC.TRUCK 28.00 0.00 CLASS 2 BASE C TN 13.50 0.00 0.00 2 OPERATOR 57.51 115.02 0 IRR.UTLTY TRK 24.50 0.0C CMB BASE 0 TN 12.10 0.00 0.00 0 PIPELAYER 45-00 C.00 0 1 TN CREW TRK 10.50 0.00 CTB BASE 0 TN 17.65 G_00 G.00 0 IRR.JOJRNY 42.01 0.00 0 3/4 TN TRK 8.25 0.00 3/4" ROCK 0 TN 16.25 0.00 0.00 3 LAB.GRP.1 41.57 124.71 1 FLATBED TRK 22.00 22.00 SE30 SAND 0 TN 17.00 0.00 0.00 CONC (MASON 41 98 0.60 0 BOBTAIL TRK 24.50 0.00 2500 CONCRETE 0 CY 85.00 0.00 0.00 BLOCK MASON 43.12 0.00 0 10 WHEELER 80.00 0.00 3250 CONCRETE 0 CY 90 00 0.00 0.00 0 BLOCK TENOR. 36.87 0.00 0 ACKHOE'JV BREAKE, 56.25 0.00 2 SACK SLURRY 0 CY 80.00 0.00 0.00 O IRON WRKR 54 78 OM 1 BACKHOE 28.50 28.50 CONC.COLOR 0 CY 50 00 C.00 0.00 0 GRADE CHKR 45.00 0 00 0 BOBCAT 25.00 0.00 REBAR 18" OC 0 SF 0.75 0.00 0.00 0 0.00 0 SKIPLOADER 23.80 0.00 WWMESH 0 SF 0.35 0.00 0.00 0 0.00 0 MINI EXCAVTR 25.80 0.00 REBAR LF 0 LF 0.30 0.00 0.00 0 0 OD 0 TRENCHER 26.35 0.00 SOIL AMENDMNTS 0 SF 0.12 0.00 0.00 0 0.00 0 RIDEON ROLLR 75.00 0.00 SOD 0 SF 0.35 0.00 0.00 0 0.00 0 WBEHiND RLLR 37.50 0.00 HYDROSEED 0 SF 0.11 0.00 0.00 0 0.00 0 BRKER ATTACH 33.79 0.00 MULCH 2" 0 SF 0.16 0.00 0.00 0 0.00 0 END DUMP 90.00 0.00 1 GAL SHRUBS 0 EA 3.50 0.00 0.00 0 0.00 0 950 W.LDR 130.00 0.00 5 GAL SHRUBS 0 EA 8.00 0.00 0.00 0 0.00 0 953 T LDR 140.00 0.00 24" BOX TREE 0 EA 150.00 0.00 0.00 0 0.00 0 SCRAPER 165.00 0.00 36" BOX TREE 0 EA 410.00 0.00 0.00 0 0.00 0 140G BLADE 125.00 0.00 G.C. FLATS 18"0.C. 0 SF 0 12 0.00 0.00 0.00 - 0 325 EXCA'VTR 175.00 0.00 IRR.MATERIA.LS 0 LS 0.00 0.00 0.00 0.00 0 0.00 DRAIN.MATRLS 0 LS 0.00 0.00 0.00 0 0.00 0 0.00 DUMP FEES DEMO 0 EA 135.0 0.00 0.00 0 . 0.00 0 0.00 0 0.00 0.00 0 0.00 0 0.00 0 0.00 0.00 0 0.00 0 0.00 0 D.00 0.00 TOTAL LABOR RATE PER HOUR 239.73 TOTAL EQUIP RATE PER HOUR 50.50 SUBTOTAL MATERIALS 0.00 TOTAL LABOR W/ BURDEN TOTAL EQUIPMENT TAX7.75% $ - TOTAL SUBS $ 719.19 $ 151.50 TOTAL $ - $ _ I TOTAL LABOR + EQUIPMENT + MATERIALS + SUBS 4 HEFFLER DAILY EXTRA WORK REPORT / FIELD DIRECTIVE AUTHORIZATION PROJECT NAME DESCRIPTION OF DIRECTED FIELD CHANGE 1/4-7,oNi1L /147 e,7nrs21., of;-- rLSD 77e eror» PROJECT NUMBER / j>N/r',,,?- t e. l`% Z d5 - ( ,/,;CJI1//9-%V �� FIELD CHANGE WILL BE PAYED BY (CIRCLE ONE) : 8 M NIT PRICE, LUMP SUM $ AUTHORIZATION TO PROCEED : DATE y 26 b LABOR CLASS HRS RATE OT HRS. OT RATE TOTAL (7ZLcz) 3 ,49-h02 j a,boi2 (Aj 3 z).,-412-rim (61 /62,5 j 3 OfJ 2 )9 ra4 Br'TJ 3 - 1 SUB -TOTAL LABOR .LABORSURCHARGE(BURDEN) TOTAL LABOR PLUS BURDEN ( A EQUIPMENT HOURS RATE TOTAL . TOTAL EQUIPMENT ( B MATERIALS QTY RATE TOTAL TOTAL MATERIAL + TAX @ % ( C ) SUBCONTRACTOR WORK PERFORMED QTY RATE TOTAL TOTAL SUB CONTRACT ( D APPROVED FOR PAYMENT SUB-TOTAL(A)+(B)+(C)+(D) , % MARKUP ON LABOR( A) HEFFLER SIGNATURE: / _,� % MARKUP ON EQUIP (B ) MARKUP ON MATERIALS (C ) CLIENT SIGNATURE: ' ./ , , _--_----- % MARKUP ON SUBS ( D ) SUB -TOTAL i DATE: / ;/0 5- % BOND & INSURANCE TOTAL WHITE. TO Cl IENT YELLOW MAIN OFFICE COP PINK. PROJECT MANAGEMENT FILE ................................. DESCRIPITION REMOVAL, DUMP UNSUITABLE MATERIAL & REPLAC WITH CL2 BASE ON 9TH ST. TASK PROPOSAL PROJECT NAME NATIONAL CITY BLVD. WORKING DAYS A. ,,.>.�'ar REM DESCRIPTION SCOPE TOTAL 1 MOBILIZATION (APROX. 10% OF ITEMS 2-30) $ 2 T & M TICKET 5/4/05 $ 1,829.09 3 T & M TICKET 5/5/05 $ 2,239.09 4 T & M TICKET 5/6/05 $ 3,537.82 5 T & M TICKET 5/9/05 $ 692.37 6 $ - 7 $ 8 $ 9 $ 10 $ - 11 - 12 _$ $ - 13 $ - 14 $ - 15 $ - 16 $ 17 $ _. 18 $ 19 $ - 20 $ - 21 $ 22 $ - 23 $ - 24 $ 25 $ - 26 $ - 27 $ - 28 $ - 29 $ - 30 $ - 31 SUBTOTAL ITEMS 1 - 30 $ 8,298.36 32 OVERHEAD & MARKUP 15% $ 1,244,75 33 SUBTOTAL INCLUDING OH & P $ 9,543.11 34 BONDS @ 1.5% $ 143.15 35 TOTAL $ 9,686.25 36 FIELD ORDERS / CONTINGENCIES APPROVAL AND NOTICE TO PROCEED BY: HEFFLER COMPANY, INC DATE: BY: NAME & TITLE: NAME & TITLE: 1800 Mckinley Avenue, ste.A National City, Ca.91950 619-336-0800 Fax 619-336-0806 PROPOSAL WORKSHEET H E'FEL'ER QUANTITIES: W/BURDEN' HRS TOTAL RATE PER EQUIPMENT HRS TOTAL RATE PER MATERIALS SUBCONTRACTORS LABOR W/FUEL 5 QTY CLASS RATE HOUR QTY TYPE RATE HOUR DESCRIPTION OTY UOM UP TOTAL DESCRIPTION 1 -: FOREMAN 50.00 50.00 0-' CONC.TRUCK 28.00 0.00 CLASS 2 BASE 0 TN 13.50 0.00 0.00 1 OPERATOR 57.51 57.51 . 0 IRR.UTLTY TRK 24.50 0.00 CMB BASE 0 TN 12.10 0.00 0.00 :.O PIPELAYER 45.00 0.00 0 1 TN CREW TRK 10.50 0.00 CTB BASE 0 TN 17.65 0.00 0.00 0; IRR.JOURNY 42.01 0.00 0--: 3/4 TN TRK 8.25 0.00 3'4" ROCK 0 TN 16.25 0.00 0.00 2 LAB 41.57 83.14 1-1 FLATBED TRK 22.00 0.00 SE30 SAND 0 TN 17.00 0.00 0.00 0. _GRP.1 CONIC. MASON 41.98 0.00 o BOBTAIL TRK 24.50 0.00 250C CONCRETE 0 CY 85.00 0.00 ,: 0.00 0, BLOCK MASON 43.12 0.00 < 18. 10 WHEELER 80.00 64.00 3250 CONCRETE 0 CY 90.00 0.00 - 0-00 0.' BLOCK TENDR. 36.87 0.00 0' H2O TRK 31.25 0.00 2 SACK SLURRY 0 CY 80.00 0.00 0.00 0; IRON WRKR 54.78 0.00 1: BACKHOE 28.50 28.50 CONC.COLOR 0 CY 50.00 0.00 0.00 0 ' GRADE CHKR 45.00 0.00 0 : BOBCAT 25.00 0.00 REBAR 18" OC 0 SF 0.75 0.00 0.0C 0 0.00 1 SKIPLOADER 23.80 23.80 WWMESH 0 SF 0.35 0.00 0.00 0. 0.00 0 MINI EXCAVTR 25.80 0.00 REBAR LF 0 LF 0.30 0.00 0.00 0 0.00 0` TRENCHER 26.35 0.00 SOIL AMENDMNTS 0 SF 0.12 0.00 0.00 0, 0.00 0' RIDEON ROLLR 75.00 0.00 SOD 0 SF 0.35 0.00 0.00 0 0.00 0 WBEHIND RLLR 37.50 0.00 HYDROSEED 0 SF 0.11 0.00 0.00 0.00 0- BRKER ATTACH 33.79 0.00 MULCH 2" 0 SF 0.16 0.00 : 0.00 ?:,0:; 0.00 0 F END DUMP 90.00 0.00 1 GAL SHRUBS 0 EA 3.50 0.00 0.00 0.00 0- 950 W.LDR 130,00 0.00 5 GAL SHRUBS 0 EA 8.00 0.00 0.00 O, . 0.00 01:: 953 T.LDR 140.00 0.00 24" BOX TREE 0 EA 150.00 0.00 0.00 0.00 O r- SCRAPER 165.00 0.00 36" BOX TREE 0 EA 413.00 0.00 0.00 CO..: 0.00 .0::: 140G BLADE 125.00 0.00 G.C. FLATS 18"O.C. C SF 0.12 D.00 0.00 -,0; � 0.00 . 0 ` 325 EXCAVTR 175.00 0.00 IRR.MATERIALS 0 LS 0.00 0.00 - 0.00 0.,,< 0.03 :0'5 WALKER 17.00 8.50 DRAIN.MATRLS 0 LS 0.00 0.00 0.00 0<x: 0.00 0;;: 0.00 DUMP FEES 1 EA 75.0 75.00 ' 0.00 O 0.00 0.- 0.00 CL2 BASE 1 LS 176.8 176.84 'r 0.00 0: 0.00 0 0.00 0 0.00 : -_ 0.00 'CK 0.00 ",0:;: 0.00 0 0.00 ;_ 0.00 TOTAL LABOR RATE PER HOUR 190.65 TOTAL EQUIP RATE PER HOUR 124.80 SUBTOTAL MATERIALS 251.84 TOTAL LABOR W/ BURDEN TOTAL EQUIPMENT TAX 7.75% $ - TOTAL SUBS $ 953 25 $ 624.00' TOTAL $ 251.84 $ - TOTAL LABOR + EQUIPMENT + MATERIALS + SUBS 118294.09 ; HEFFLER'- DAILY EXTRA WORK REPORT C FIELD DI,' IVE AUTHORIZATION PROJECT NAME DESCRIPTION OF DIRECTED FIELD CHANGE l DNi4 i Y/� , �!/N U/vh.�i f �P �/ /9G. e PROJECT NUMBER itithiy a 1 4 t0 .9�L , .0,6- - ( FIELD CHANGE WILL BE PAYED BY (CIRCLE ONE) (' & M NIT PRICE, LUMP SUM S. AUTHORIZATION TO PROCEED : DATE:5."1 Q, LABOR . CLASS HRS RATE OT HRS. OT RATE TOTAL 44v-1'm1s-A 5 ithmA 5 SUB -TOTAL LABOR LABOR SURCHARGE ( BURDEN) % TOTAL LABOR PLUS BURDEN (A ) EQUIPMENT HOURS RATE TOTAL .8AfILFF6 @ .5.-- 5//1)CaR.0.i? 1 b j 4l,TL r5- 1 TOTAL EQUIPMENT ( B MATERIALS QTY RATE TOTAL ' J-MV3 /..-;57--/— 4'.1-- '6- i \'1,. TOTAL MATERIAL + TAX @ % (C) SUBCONTRACTOR WORK PERFORMED QTY RATE TOTAL TOTAL SUB CONTRACT ( D ) APPROVED FOR PAYMENT SUB-TOTAL(A)+(B)+(c)+(D) %. MARKUP ON LABOR (A ) HEFFLER SIGNATURE: // % MARKUP ON EQUIP (B ) _�-- ` % MARKUP ON MATERIALS (C ) CLIENT SIGNATURE. b ^-7/f _._ % MARKUP ON SUBS ( D ) r SUB -TOTAL DATE: {24' 5' % BOND & INSURANCE TOTAL WHITE. TO CLIENT YELLOW. MAIN OFFICE COPY PINK. PROJECT MANAGEMENT FILE • Lakeside Land Company 10101 Riverford Road Lakeside, CA 92040-2741 Bill To: Hefner Company, Inc. Attn: Accounts Payable PO Box 2326 National City, CA 91951-2326 LandFill Invoice DATE INVOICE # 5/4/2005 13 5145 j Job Location: NATIONA CITY & 8TH STREET NATIONAL CITY P.O. # Job # DESCRIPTION QTY RATE AMOUNT CLEAN DIRT - NO GRASS, WEEDS, ROOTS, PLANTS, TRASH #233I2 Sales Tax c i`v1, 547.53, 544 O 1 75.00 7.75% 75.00 0.00 Phone # Fax # (619) 449-9083 (619)449-9919 Total Due $75.00 Balance Due $75 00 Lakeside Land Company 10101 Riverford Road Lakeside, CA 92040-2741 BILL TO Heftier Company, Inc. Attn: Accounts Payable PO Box 2326 National City, CA 91951-2326 Material Sales Invoice DATE INVOICE # 5/4/2005 135259 JOB LOCATION National Bc 8 P.O. NO. TERMS REP VEHICLE LICENSE Net 30 MATERIAL GROSS TARE RATE NET AMOUNT 78588CLASS II BASE 24.70 12.29 14.25 12.41 176.84T Sales Tax 7.75% 13.70 ri i_rr 5411 , 542v1, 5430, 544E. JOl34 � 5450 Lakeside Land Co. Inc,: Principal Weighmaster This is to certifiy that the following described commodity was weighed, measured, or counted by a weighmaster, whose signature is on this certificate, who is a registered Tota 1 $190.54 authourity of accuracy, as prescribed by chapter 7 (commencing with section 12700) of iivision 5 of the California Business and Professions Code,administered by the Division l flvf,,Q,,rnlrnt 't nrlo.4....Ftt...!'..GR.....:., 11.._,.w..___. ._vn__J __ 1 . r • I I Balance Due $190.54 _____....__. _r... ......... .......... ...... .............. 93 PROPOSAL WORKSHEET HE FF L`ER QUANTITIES: HRS TOTAL RATE PER EQUIPMENT HRS TOTAL RATE PER MATERIALS SUBCONTRACTORS LABOR W/BURDEN 5 W/FUEL 5 QTY CLASS RATE HOUR QTY TYPE RATE HOUR DESCRIPTION QTY UOM UP TOTAL DESCRIPTION 1 FOREMAN 50.00 50.00 0 CONC TRUCK 28.00 0.00 CLASS 2 BASE 0 TN 13 50 0.00 0.00 1 OPERATOR 5 7.51 57.51 0 IRR.UTLTY TRK 24.50 0.CD CMB BASE C TN 12.10 0 CO C CO 0 PIPELAYER 45 00 0.00 0 1 TN CREW TRK 10.5C 0.00 CTB BASE C TN 17.65 0.00 0.00 0 IRR JOURNY 4201 0.00 0 314 TN TRK 825 0.00 3i4' ROCK 0 TN 16.25 0.00 0.CC 2 LAB_GRP 1 41 57 83 14 0 F'_ATBED TRK 22 00 0.00 SE30 SAND 0 TN 17.00 0 00 0 00 0 CONC MASCN 41.98 0_CO 0 BOBTAIL TRK 24 50 0.0E 250E CONCRETE 0 CY 85.00 0 00 0.00 0 BLOCK MASON 43.12 0.00 1 .2 10 WHEELER 80.00 96.00 325C CONCRETE '0 CY 90.00 0.00 0.00 0 BLOCK TENOR. 36.87 0.00 0 H2O TRK 31.25 O.DO 2 SACK SLURRY 0 CY 80.00 0.00 0.00 0 IRON WRKR 54.78 0.00 1 BACKHOE 28.50 28.50 CONC COLOR 0 CY 50.00 0.00 0 00 0 GRADE CHKR 45_D0 0.00 0 BOBCAT 25.00 0.00 REBAR 18" CC 0 SF 0 75 0.00 0.00 0 0.00 1 SKIPLOADER 23.80 23.80 WWMESH 0 SF 0 35 0 00 0 00 0 0.00 0 MINI EXCAVTR 25.80 0.00 REBAR LF 0 LF 0.30 0.00 0.00 0 0.00 0 TRENCHER 26.35 0.00 SOIL AMENDMNTS 0 SF 0.12 0.00 0.00 0 0.00 0 RIDEON ROLLR 75.00 0.00 SOD 0 SF 0.35 0.00 0.00 0 0.00 0 WBEHIND RLLR 37.50 0.00 HYDROSEED C SF 0.11 0.00 0.00 0 0.00 0 BRKER ATTACH 33,79 0.00 MULCH 2" 0 SF 0.16 0.00 0.00 0 0.00 0 END DUMP 90.00 0.00 1 GAL SHRUBS 0 EA 3.50 0.00 0.00 0`.: 0.00 0 950 W.LDR 130.00 0.00 5 GAL SHRUBS 0 EA 8.00 0.00 0.00 0r 0.00 0 953 T.LDR 140.00 0.00 24" BOX TREE 0 EA 150.00 0 00 0.00 0 0.00 0 SCRAPER 165.00 0.00 36" BOX TREE 0 EA 410.0E 0.00 0.00 0.:" 0.00 0 140G BLADE 125,00 0.00 G.C. FLATS 18"O.C. 0 SF 0.12 0.00 0.00 0 0.00 0 ' 325 EXCAVTR 175.00 0.00 IRR,MATERIALS 0 LS 0.00 0.00 0.00 p,,: 0.00 1 WALKER 18.00 18.00 DRAIN.M.ATRLS 0 LS 0.00 0.00 0.00 0.-,..0.00 0 0.00 DUMP FEES DEMO 3 EA 75.0 225.00 : 0.00 0- 0.00 0 (. 0.00 CL2 BASE 1 LS 229.3 229,33 0.00 Q;- 0.00 0, 0 00 0 0.0E : 0.00 o. 0.00 O,'. 0.00 0 0.00 > 0.00 TOTAL LABOR RATE PER HOUR 190.65 TOTAL EQUIP RATE PER HOUR 166.30 SUBTOTAL MATERIALS 454.33 TOTAL LABOR W/ BURDEN TOTAL EQUIPMENT TAX 7.75 %o $ - TOTAL SUBS $ 953.25, $ 831:50, TOTAL $ 454.33 $ - TOTAL LABOR + EQUIPMENT + MATERIALS + SUBS ..................... 2,230 08 . HEFFLERR '-' DAILY EXTRA WORK REPORT / FIELD DIRECTIVE AUTHORIZATION PROJECT NAME DESCRIPTION OF DIRECTED FIELD CHANGE 1 A/HTiPtiAL !!f 7 J &ve ,!!�� a'n,e, %/I/56)/e./F. e-e .5e ,G 5- ,( /iLP , PROJECT NUMBER AJ / - Al/ �l 2 / ., ,s e �..L` 5 (>,,'- U G 3 SUM AUTHORIZATION TO PROCEED : DATE: 5 5;,./ LABOR _ CLASS HRS RATE OT HRS. OT RATE TOTAL J ,!' /1,77-� S /:y /6l. SUB -TOTAL LABOR LABOR SURCHARGE(BURDEN) y, TOTAL LABOR PLUS BURDEN ( A EQUIPMENT HOURS _ RATE TOTAL a/ l•e/'�./ --/ �/T 4 11 (-) ti/9Z/«/2 AS TOTAL EQUIPMENT ( B MATERIALS QTY RATE TOTAL 8 e 77 7�ti� ,,,i,-,Z / ham' ,Z2/r T TOTAL MATERIAL + TAX @ % ( C SUBCONTRACTOR WORK PERFORMED QTY RATE TOTAL .. TOTAL SUB CONTRACT ( D ) APPROVED FOR PAYMENT SUB-TOTAL(A)+(B)+(C)+(D) /� % MARKUP ON LABOR ( ) HEFFLER SIGNATURE: --✓�UU ))------- . % MARKUP ON EQUIP (B ) % MARKUP ON MATERIALS (C ) ,,v CLIENT SIGNATURE: /,y� �} �,,,_,, ,..—__ r/ % MARKUP ON SUBS (D ) �/ ,/ SUB -TOTAL DATE: !f !/f`a/�"c % BOND & INSURANCE TOTAL WHITE. TO CLIENT YELLOW: MAIN OE.FICE COPY PINK: PROJECT MANAGEMENT FILE Lgkeside Land Company 10101 Riverford Road Lakeside, CA 92040-2741 Bill To: Heftier Company, Inc. Attn: Accounts Payable PO Box 2326 National City, CA 91951-2326 LandFill Invoice DATE INVOICE# 5/5/2005 135308 Job Location: NATIONA CITY & 8TH STREET NATIONAL CITY P.O. # Job# DESCRIPTION QTY RATE AMOUNT ASPHALT OR ASPHALT & DIRT SIZED TO 2' MINUS #23378 CLEAN DIRT - NO GRASS, WEEDS, ROOTS, PLANTS, TRASH #23503,23529 Sales Tax • v1, :;43S, 544E 13 1 2 70.00 75.00 7.75 % --- 70.00 150.00 0.00 Phone # Fax # (619) 449-9083 (619)449-9919 Total Due $220.00 Balance Due $220.00 IWEIGHMAS— WEIGHED AT ER CO. RUCTION RESIDUE RECYCLING 855 ENERGY WAY DATE TIME CHULA VISTA CA. 91911 60044 TICKET NO. !TRUCK LIC NO. TRAILEFY LIC NO NAME (MATERIAL TYPE c _ rr WEIGHT GROSS WT TONS DEPUTY WEIGHMASTER SIGNATURE UNIT OF MEASUR4 DATE TARE WT / ( NET WEIGHT 11 ems, CUSTOMER SIGNATURE TOTAL. PRICE WEiGHMASTER CERTIFICATE THIS IS TO CERTIFY that the above descnbed commodity was weighed measured. or counted by a weighmaster, whose signature is on This certificate. who is a recognized authority of accuracy, as prescribed by Chapter 7 (commencing with Section 12700 of Division 5 of.the' California Business and Professions Code, administered by the Division of Measurement Standards of the California Oeparimenl of Food and Agriculture "ANEtGHMAS—ER WEIGHED AT of 1RUCTION RESIDUE RELYCUNG 855 ENERGY WAY CHULA VISTA CA. 9t911 60046 DATE TIME TICKET NO. �.M ME TRUCK.LIC NO. TRAILER LIC NO rMATERIAL TYPE t Air OF MEASURE' WEIGHT TONS GROSS WT f lr` TARE WT f i r� NET WEIGHT ( s 1-1 LA DEPUTY WEIGHMAS 9 SIGNATURE DATE free (, CUSTOMER SIGNATURE TOTAL ARICE WEIGHMASTER CERTIFICATE THIS IS TO CERTIFY that the above described commodity was weghed measured. or counted by a weighmaster, whose signature is on this certificate. who is a recognized authority of accuracy, as prescribed by Chapter 7 (commencing with Section 12700 of Division 5 of the' California Business and Professions Code, administered by the Division of Measurement Standards of the California Department of Food and AgriniUure NVEIGHMAS WEIGHED AT ER CC RUCTION RESIDUE RECYCLING 855 ENERGY WAY:. CHULA VISTA CA. 01911 DATE TIME 60047 TICKET NO. TRUCK LIC NO. TRAILER LIC NO {MATERIAL TYPE (f 1 r j i h(AM]= I1 WEIGHT TONS GROSS WT j TARE WT NET WEIGHT am- IT OF uEAStIRq #_. DEPUTY W/IGHMASTER SIURE DATE CUSTOMER SIGNATURE - TOTAL PRICE WEIGHMASTER CERTIFICATE THIS IS TO CERTIFY that the above described commodity was weighed measured, or counted by a weighmaster, whose signature is on This certificate. who is a recognized authority of accuracy, as prescribed by Chapter 7 (commencing with Section 12700 of Division 5 of the' California Business and Professions Code, administered by the Division of Measurement Standards of the California Department of Food and Agriculture r f r'"7 I... / i' -?� ) HEFFLERk DAILY EXTRA WORK REPORT / FIELD DIRECTIVE AUTHORIZATION 11 PROJECT �' DESCRIPTION OF DIRECTED FIELD CHANGE �NAME PROJECT NUMBER .: �,Z/P r,Y" ' ! Lj)f h Z.. e', � ', ZA FIELD CHANGE WILL BE PAYED BY (CIRCLE ONE) 8 M, IT PRICE, LUMP SUM $ AUTHORIZATION TO PROCEED : DATE 5/ t9' LABOR CLASS HRS RATE OT HRS. OT RATE TOTAL, J'edA SUB -TOTAL LABOR LABOR SURCHARGE ( BURDEN) % TOTAL LABOR PLUS BURDEN ( A ) EQUIPMENT HOURS RATE TOTAL 'Su i oA/"S. % dy/rn•l /(lA V A Tgiff 6 Ge-4¢1_,il2 �y -l7/F L �. C� ; �/ /I) GCJ h1/ W.Z./cz l t j TOTAL EQUIPMENT 1 / B ) MATERIALS QTY RATE TOTAL (1 Z_ 2 t3.'9. . /D )r1/vi() _in ,Oii 7 Z TOTAL MATERIAL + TAX @ % ( C ) SUBCONTRACTOR WORK PERFORMED QTY RATE TOTAL TOTAL SUB CONTRACT ( D APPROVED FOR PAYMENT SUB -TOTAL (A) + (B) + (C) + (D ) % MARKUP ON LABOR (A ) HEFFLER SIGNATURE: 63----- % MARKUP ON EQUIP (B ) MARKUP ON MATERIALS (C ) CLIENT SIGNATURE: A / t S , _ % MARKUP ON SUBS (D ) a O SUB -TOTAL DATE: ) / (.)/ J % BOND & INSURANCE TOTAL WHITE. TO CLIENT YELLOW: MAIN OFFICE COPY PINK- PROJECT MANAGEMENT- FILE Lakeside Land Company 10101 Riverford Road Lakeside, CA 92040-2741 Bill To: Heftier Company, Inc. Attn: Accounts Payable PO Box 2326 National City, CA 91951-2326 LandFill Invoice DATE 5/9/2005 Job Location: NATIONA CITY & 8TH STREET NATIONAL CITY ' INVOICE # 135508 P.O. # DESCRIPTION CLEAN DIRT - NO GRASS, WEEDS, ROOTS, PLANTS, TRASH #23823,23861,23971 Sales Tax Phone # (619)449-9083 Fax # (619) 449-9919 QTY RATE i Job # AMOUNT 3 75.00 7.75% -# 541 I-.., 542M, 543— 544 Total Due 225.00 0.00 $225.00 Balance Due S225.00 3/ ' 0/07/2005 06:10 6193360606 REF='_ER "AG= ^2/?` IAERRLER DESCRIPITION - 1 1/2" GRIND, 1 1/2" TO 2" OVERLAY, LOOPS, PETROMAT, ADJUST UTILITIES, & STRIPING OUT SIDE CONTRACT WORK. TASK PROPOSAL PROJECT NAME: NATIONAL CITY BLVD„ WORKING DAYS, 5 1tEM DESCAIPTION wore TOTAI. 1 1 1/2" COLD PLAN @ $ 3.12 PER LF $ 3.12 PER LF APPROX 2,200 LF $ 3,854.00 2 1 1/2" - 2" AC OVERLAY @ $85.79 PER TON $ 35.79 PER TON APPROX. 750 TONS _ $ 65,200.40 $ 15,12.7.58 3 TRAFFIC LOOPS @ $420.21 PER LOOP $ 420.21 PER LOOP APPROX. 3E LOOPS 4 PETROMAT (a) $0.21 PER SF $ 0.21 PER SF APPROX. 70,000 SF $ 14,700.00 5 STRIPING @ $ 3,357.01 LUMP SUM $ 3,357.01 LUMP SUM $ 3,367.01 B ADJUST MANHOLES @ $ 517.50 EACH S 517.50 EACH APPROX. 3 MANHOLES $ 1,552.50 7 ADJUST CANS @ $ 145.00 EACH s 145.00 EACH APPROX 15 CANS $ 2,175.00 8 $ - 9 $ - 10 $ - 11 . $ - 12 $ - 13• $ - 14 $ - 15 $ - 16 $ - 17 S - 18 $ - 19 $ - 20 $ - 21 $ - 22 $ - 23 $ - 24 $ - 25 $ - 26 $ - 27 $ - 28 $ - 29 $ - 30 $ - 31 SUBTOTAL ITEMS 1 - 30 $ 108,976.47 32 33 TOTAL $ 1018,976.47 34 35 36 APPROVAL AND NOTICE TO PROCEED BY: HEFFLER COMPANY, INC DATE: BY: NAME & TITLE: NAME & TITLE: 1800 Mckinley Avenue. ste.A National City, Ca.81950 819-336-0800 Fax G19-336-0806 MEETING DATE July 19, 2005 City of National City, California COUNCIL AGENDA STATEMENT 6 AGENDA ITEM NO. ITEM TITLE A Resolution directing the preparation of the Report required by Health and Safety Code Section 5473 for the collection of sewer charges on the tax roll and setting a public hearing thereof for August 2, 2005. PREPARED By Joe Smit EXPLANATION See Attached. DEPARTMENT Public Works EXT. 4587 Environmental Review Financial Statement N/A MIS Approval Approved By: Finance Director On April 19, 2005, Council authorized an agreement with PBS&J in the amount of $47,265 for services related to the preparation of this report. STAFF RECOMMENDATION Account No. Adopt the resolution directing the preparation of the report required by Health and Safety Code Section 5473 and setting the public hearing to consider t report for August 2, 2005. BOARD / CC``'.MISSION RECOMMENDATION N/A ATTACHMENTS 1 Listed Below) Resolution No. 1. Resolution A-200 (Rev. 7/03) Explanation: In June 2003, the City Council enacted an ordinance authorizing collection of sewer charges on the tax roll. As required by Sections 5470-5470.10 of the Califomia Health and Safety Code and Chapter 14.04 of the National City Municipal Code, the City Council may cause a written report to be prepared each year and filed with the City Clerk, which should contain a description of each parcel of real property receiving sewer services, and the amount of the charges for each parcel for the year. The City Clerk must then cause a notice of the filing of said report and of a time and place of a hearing to consider the report to be published once a week for two successive weeks. Staff requests the City Council to adopt said resolution and set August 2, 2005 as the date for the public hearing. At the time of the hearing, the City Council shall hear and consider all objections or protest to the report. If Council finds that protest is made in the owners of a majority of separate parcels of property described in the report, then, the report shall not be adopted and the charges not collect on the tax roll. Where there is not a majority protest, the City Council may adopt, revise, change, reduce or modify any charge or overrule any and all objections, and make a final determination upon each charges described in the report. On or before August 10 of each year, the City Clerk shall file with the Auditor a copy of the report with a statement over his signature that the report has been finally adopted by the City Council, and the Auditor shall enter the amounts of the charges against each parcel on the assessment roll. C:\Documents and Settings \RSaucedo\My Documents \A200s\FY06-Sewer Charges Tax Roll Report Preparation.doc RESOLUTION 2005 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY DIRECTING THE PREPARATION OF THE REPORT REQUIRED BY CALIFORNIA HEALTH AND SAFETY CODE SECTION 5473, ET SEQ. PERTAINING TO COLLECTION OF SEWER SERVICE CHARGES ON THE TAX ROLL FOR FY 2005 — 2006 WHEREAS, pursuant to Ordinance No. 2003-2225, the City Council of the City of National City elected to have sewer service charges collected on the tax roll, as authorized by California Health and Safety Code Section 5473 et seq.; and WHEREAS, California Health and Safety Code Section 5473 requires a report to be prepared each year and filed with the City Clerk, which report shall contain a description of each parcel of real property receiving sewer service and the amount of the sewer service charges for each parcel for the year; and WHEREAS, California Health and Safety Code Section 5473.4 provides that on or before August 10 of each year, the City Clerk shall file with the Auditor a copy of the report prepared pursuant to Section 5473 with a statement endorsed on the report over his signature that the report has been adopted by the City Council, and the Auditor shall enter the amount of the charges against the respective lots or parcels of land as they appear on the current assessment roll. NOW, THEREFORE, BE IT RESOLVED that for FY 2005 — 2006 the City Council of the City of National City hereby directs the preparation of the Report required by California Health and Safety Code Section 5473, et seq. PASSED and ADOPTED this 19th day of July, 2005. Nick Inzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE July 19, 2005 7 AGENDA ITEM NO. ITEM TITLE Resolution of the City Council of the City of National City authorizing the Mayor to execute an casement deed granting a sewer easement, APN 570-020-47-00, to the County of San Diego for the reconstruction of an existing sewer line known as the Spring Valley Outfall Sewer located at the intersection of Plaza Bonita and Equitation Road PREPARED BY Charles Nissley DEPARTMENT Engineering EXT. 4386 EXPLANATION As part of the County of San Diego's effort to improve its services and facilities, the County of San Diego Department of Public Works is proposing to acquire easements for the purpose of the reconstruction of the existing sewer line, known as the Spring Valley Outfall Sewer Line. The County will abandon in place the existing 39" RCP sewer line and construct a new 42" RCP sewer line in a new easement paralleling the old 39" sewer line in a City owned parcel, APN 570-020-47-00 (see Attachment A), located at the intersection of Plaza Bonita Road and Equitation Lane. The proposed sewer easement will run within the boundaries of several existing easements including an access casement for public utilities, a water main easement and an easement for road purposes and will have a minimal impact on the use of the property. The property is currently vacant with a paved private road, a gravel utility road and several manholes and is too small for residential or commercial use. In order to reconstruct the sewer line the County of San Diego is seeking approval of a sewer easement (as described in Exhibit A and shown in Exhibit B) from the City Of National City. Environmental Review N/A MIS Approval Financial Statement N/A STAFF RECOMMENDATION Adopt the Resolution. BOARD / CtJM1SSION RECOMMENDATION N/A Approved By: Finance Director Account No. ATTACHMENTS ( Listed Below) Resolution No. 1. Resolution 2. Attachments A and B 3. Easement Documents spring A-200 (Rev. 7/03) RESOLUTION NO. 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN EASEMENT DEED GRANTING A SEWER EASEMENT TO THE COUNTY OF SAN DIEGO FOR THE RECONSTRUCTION OF AN EXISTING SEWER LINE KNOWN AS THE SPRING VALLEY OUTFALL SEWER LINE LOCATED AT THE INTERSECTION OF PLAZA BONITA ROAD AND EQUITATION ROAD WHEREAS, the Public Works Department of the City of San Diego is proposing to acquire easements for the purpose of the reconstruction of the existing sewer line known as the Spring Valley Outfall Sewer Line which is located at the intersection of Plaza Bonita Road and Equitation Road; and WHEREAS, the proposed sewer easement will run within the boundaries of several existing easements including an access easement for public utilities, a water main easement and an easement for road purposes, and will have minimal impact of the use of the property which is currently vacant with a paved private road, a gravel utility road and several manholes, and is too small for residential or commercial use. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor is to execute a deed for a sewer easement for the purpose of the reconstruction of the existing sewer line known as the Spring Valley Outfall Sewer Line which is located at the intersection of Plaza Bonita Road and Equitation Road. PASSED and ADOPTED this 19th day of July, 2005. Nick Inzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney MetroScan /San Diego (CA) Owner : City Of National City Parking Authority Parcel : 570 020 47 00 CoOwner : Land Site : Plaza Bonita National City Struct Mail : Public Agency Other Xfered : 12/02/1987 Doc # : 665944 Total Price Deed Exempt Loan Amt Loan Type VestType IntTy % Impry Lender % Owned . Land Use *unknown Use Code* TaxArea : 06022 Bldg Use : *unknown Building Use* MapGrid . Zoning : *unknown Zoning* 04-05 Tx : Plat : L W KIMBALLS SUB OF POR 1/4 SEC 98 99 11 MapNumb :000063 Phone Legal : L W KIMBALLS SUB OF POR 1/4 SEC 98 Owner Census : Tract : Block Tenant Bedrooms View Acres Bldg SqFt . Bathrooms : Garage Sp : LotSqFt Year Built . Pool Units Stories SH1' 2 -o 5/6/05 SM fM'DEW OMIT —CZ YM 570-02 �FF'EC9'Eb. MAP 12462-CHULA VISTA TCT NO 84-1 EUCALYPTUS GROVE UNIT I MAP 12460-CHULA VISTA TOT NO B4-I EUCALYPTUS GROVE UNIT MAP I86-RANCHO DE LA NAGION MAP 63 - L W KIMBALLS SUB OF POR QSEC S8.99.100,111 NATIONAL RANCH RCS 2361,10551 r uwe 59 R eioP o + 41AOO \ O rywioa 4) js'iSANDALWOOD DR .>[{ONTA 6L_N DR— NN 19 1995 ATTACHMENT A P VE TABLE: 09 L.F. LF., R=500 $.44 L.F. ?.12 L.F. 50 0 .47 L.F. \\ `�...\`\ .9,)t, �\ 1 k =� POW T It2fk& S APW 570�0247\ (P W4 ONAL I`L~ 005-O0 9 �\ APN ,q7O-O4O-0 SEWE 'EASE -MEN AREA = P \�;^'\ \`‘ _zoos=oos�cr�� -PROPOSE-6,15 \StWER--EASEMENT ARFA�=518S. ek69=LA 'SC; \ -\-- PROPOSED\TEMP SEWS `' CONSTRUCTION EASEMENT' -.CI. \ AREA =523F. \ 2005-16669-8 : x .:6. t \ EASEMEN ]�, FAR A \ REC. 02/16/1990, F/It('N� i pep Am ATTACHMENT B EASEMEN7`}FOR ROAD PURP \ REC. 001/1939, BK. 891. EASEA NT'FOR SEWER 4.INES x 36.3 \ }?E 000/1981, FILE NO. 1 t 0,3' \ EASEMENT FOh . v6t \� \ REC. 0J/25/1981, Fl (0f RECORDING REQUESTED BY DEPARTMENT OF GENERAL SERVICES FOR THE BENEFIT OF THE COUNTY OF SAN DIEGO PER GOVERNMENT CODE SECTION 27383 WHEN RECORDED, PLEASE RETURN THIS INSTRUMENT TO: (MAIL STATION A45) Clerk, Board of Supervisors San Diego County Administration Center 1600 Pacific Highway San Diego, California 92101 SPACE ABOVE FOR RECORDER'S USE ONLY EASEMENT SEWER LINES AND APPURTENANCES NO TRANSFER TAX DUE Assessor's Parcel Project: SPRING VLY SEWER No.: 570-020-47 OUTFACE W.O. No.: TA 6073 Parcel No.: 2005-0069-A,B Fund: THE PARKING AUTHORITY OF THE CITY OF NATIONAL CITY, hereinafter designated GRANTOR(S), owner(s) of the hereinafter described lands, for a valuable consideration, the receipt of which is hereby acknowledged, do hereby GRANT and CONVEY to SPRING VALLEY SANITATION DISTRICT herein designated GRANTEE, a perpetual easement and right-of-way upon, through, under, over and across the hereinafter described real property for the installation, construction, operation, maintenance, repair, replacement, and reconstruction of SEWER pipe lines and/or mains, manholes, sewer lateral pipe lines, and all structures incidental thereto, together with the perpetual right to remove buildings, structures, trees, bushes, undergrowth, flowers, and any other obstructions interfering with the use of said easement and right-of-way by Grantee, its successors or assigns and in addition thereto, to remove soil and other materials within said right-of-way and to use the same in such manner and at such locations as said Grantee may deem proper, needful or necessary in the construction, reconstruction and maintenance of said sewer lines and structures incidental thereto. Grantor(s) hereby further grant(s) to Grantee the right to convey said easement, or any portion of said easement, to other public agencies. The real property referred to herein and made subject to said easement and right-of-way by this grant is situated in the County of San Diego, State of California, and is more particularly described as follows: Parcel No. 2005-0069-A (06.08.2005) (NASLAND:TGH:pet) A STRIP OF LAND 15 FEET IN WIDTH UPON, THROUGH, UNDER, OVER AND ACROSS A PORTION OF THAT FORMER RAILWAY RIGHT OF WAY OF THE SAN DIEGO AND SOUTHEASTERN RAILWAY COMPANY (40-FOOT WIDE), IN THE COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, BEING ALSO A PORTION OF LOT 10 OF L.W. KIMBALL'S SUBDIVISION OF PARTS OF QUARTER SECTIONS 98, 99, 110 AND 111 OF RANCHO DE LA NACION, IN SAID COUNTY OF SAN DIEGO, ACCORDING TO MAP THEREOF NO. 63, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, MAY 11, 1885, LYING WESTERLY OF THE WESTERLY LINE OF THE EAST 6.0 ACRES OF SAID LOT 10 AND LYING EASTERLY OF A LINE THAT IS PARALLEL WITH AND 47 FEET EASTERLY OF THE 1 of 4 GATAb073-SV-Out-SUSP-BRDG\RW\DEED \2005-0069-AB1b.DOC s.05.06 09.07.05.00.ix 2005-0069-A,B Parcel No. 2005-0069-A (CONTINUED) CENTERLINE OF PLAZA BONITA ROAD ACCORDING TO RECORD OF SURVEY MAP NO. 10551 FILED IN SAID COUNTY RECORDER'S OFFICE. THE SIDELINES OF SAID 15-FOOT WIDE STRIP OF LAND BEING 7.5 FEET ON EACH SIDE OF THE FOLLOWING DESCRIBED CENTERLINE: COMMENCING AT A BRASS DISK IN A STANDARD CENTERLINE WELL MONUMENT SPAMPED RCE 18878 PER RECORD OF SURVEY 10551 ALSO SHOWN AS POINT A ON RIGHT-OF-WAY MAP FOR SPRING VALLEY OUTFALL SEWER MH 37-39 AS ON FILE IN THE OFFICE OF THE COUNTY ENGINEER OF SAID SAN DIEGO COUNTY; THENCE SOUTH 61°45'25" EAST, 57.42 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 72°47'04" EAST, 57.09 FEET TO THE BEGINNING OF A TANGENT 500 FOOT RADIUS CURVE, CONCAVE NORTHERLY; THENCE EASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 05°04'04", AN ARC DISTANCE OF 44.23 FEET; THENCE TANGENT TO SAID CURVE SOUTH 77°51'09" EAST, 468.44 FEET TO THE BEGINNING OF A TANGENT 505.00 FOOT RADIUS CURVE, CONCAVE NORTHERLY; THENCE EASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 13°13'51", AN ARC DISTANCE OF 116.62 FEET; THENCE TANGENT TO SAID CURVE NORTH 88°55'00" EAST, 250.12 FEET; THENCE NORTH 74°47'10" EAST, 441.99 FEET TO THE BEGINNING OF A TANGENT 250 FOOT RADIUS CURVE, CONCAVE SOUTHERLY; THENCE EASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 39°06'07", AN ARC DISTANCE OF 170.61 FEET TO THE BEGINNING OF A TANGENT REVERSE CURVE, CONCAVE NORTHERLY HAVING A RADIUS OF 200 FEET; THENCE EASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 39°55'05", AN ARC DISTANCE OF 139.34 FEET TO ENGINEERS STATION 26+88.44, ALSO BEING THE BEGINNING OF ATANGENT REVERSE CURVE, CONCAVE SOUTHERLY HAVING A RADIUS OF 200 FEET; THENCE EASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 22°31'34", AN ARC DISTANCE OF 78.63 FEET; THENCE TANGENT TO SAID CURVE SOUTH 83°30'14" EAST, 220.47 FEET TO ENGINEERS STATION 29+87.54 PER SAID RIGHT-OF-WAY MAP FOR SPRING VALLEY OUTFALL SEWER MH 37-39, ALSO BEING ENGINEERS STATION 10+00.00 PER RIGHT-OF-WAY MAP FOR SPRING VALLEY OUTFALL SEWER MH 35-37AS ON FILE IN THE OFFICE OF THE COUNTY ENGINEER OF SAID SAN DIEGO COUNTY; THENCE SOUTH 83°30'14" EAST A DISTANCE OF 449.11 FEET TO THE BEGINNING OF A TANGENT 800 FOOT RADIUS CURVE, CONCAVE NORTHERLY; THENCE EASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 44°28'26", AN ARC DISTANCE OF 620.97 FEET; THENCE TANGENT TO SAID CURVE NORTH 52°01'20" EAST A DISTANCE OF 31.19 FEET TO THE BEGINNING OF A TANGENT 800 FOOT RADIUS CURVE, CONCAVE NORTHWESTERLY; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 19°04'56", AN ARC DISTANCE OF 266.44 FEET TO THE BEGINNING OF A TANGENT REVERSE CURVE, CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 800 FEET; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 36°46'01", AN ARC DISTANCE OF 513.37 FEET; THENCE TANGENT TO SAID CURVE NORTH 69°42'26" EAST A DISTANCE OF 10.44 FEET TO A POINT ON THE CENTERLINE OF THAT CERTAIN SEWER EASEMENT GRANTED TO SPRING VALLEY SANITATION DISTRICT IN A DOCUMENT RECORDED AUGUST 16, 1962 AS FILE NO. 140260 IN SAID COUNTY RECORDER'S OFFICE, SAID POINT ALSO BEING THE POINT OF TERMINUS. Parcel No. 2005-0069-B (06.07.2005) (NASLAND:TGH:pet ) A TEMPORARY CONSTRUCTION EASEMENT AND RIGHT-OF-WAY UPON, THROUGH, UNDER, OVER AND ACROSS THE HEREINAFTERDESCRIBED REAL PROPERTY FOR INCIDENTAL PURPOSES NECESSARY TO THE INSTALLATION, CONSTRUCTION, REPAIR, REPLACEMENT, AND 2 of 4 s.0506 09.07.05.00.ix GATA6073-5 V-OubSU SP-BRDG\R\MDEED\2005-0069-AII 1 b.DOC 2005-0069-A,B Parcel No. 2005-0069-B (CONTINUED) RECONSTRUCTION OF THE ABOVE DESCRIBED SEWER PIPELINES (THE PROJECT), WITH THE RIGHT TO REMOVE BUILDINGS, STRUCTURES, TREES, BUSHES, UNDERGROWTH, FLOWERS, AND ANY OTHER OBSTRUCTIONS INTERFERING WITH THE USE OF SAID EASEMENT AND RIGHT-OF- WAY BY GRANTEE, ITS SUCCESSORS OR ASSIGNS AND IN ADDITION THERETO, THE RIGHT TO GRADE, PLACE OR REMOVE SOIL, EQUIPMENT AND OTHER MATERIALS WITHIN SAID RIGHT-OF- WAY AND TO USE THE SAME IN SUCH MANNER AND AT SUCH LOCATIONS AS SAID GRANTEE MAY DEEM PROPER, NEEDFUL OR NECESSARY IN THE INSTALLATION OF SAID PIPELINES OR STRUCTURES APPURTENANT THERETO. THAT PORTION OF SAID RAILWAY RIGHT OF WAY DESCRIBED ABOVE, LYING SOUTHERLY OF THAT 15-FOOT WIDE STRIP OF LAND DESCRIBED ABOVE IN PARCEL NO. 2005-0069-A. THIS TEMPORARY CONSTRUCTION EASEMENT WILL BE IN EFFECT FOR ONE YEAR BEGINNING UPON COMMENCEMENT OF CONSTRUCTION, AND MONTH BY MONTH THEREAFTER UNTIL THE PROJECT IS COMPLETED. IN ANY EVENT THIS EASEMENT WILL TERMINATE ON COMPLETION OF CONSTRUCTION. The Grantor(s) may, at their own risk, use the surface of the above described real property in a manner that will not interfere with or be detrimental to the use of said easement and right-of-way by Grantee, its successors and assigns, provided no trees shall be planted or grown thereon. The Grantor(s) hereby covenant(s) and agree(s) for themselves, their heirs, successors and assigns, that there shall not be constructed or maintained upon the above described real property or within said easement and right-of-way any building or structure of any nature or kind that will interfere with the use of said easement and right-of-way by Grantee, its successors or assigns, or that will interfere with the ingress or egress along said easement by said Grantee, its successors or assigns. The Grantee hereby covenants and agrees for itself, its successors and assigns, not to prevent the Grantor, their successors or assigns, from crossing over said real property and agrees that the Grantor, their heirs, successors and assigns, may enjoy the continued use of the surface of said real property herein described, subject to the conditions above stated; and the Grantee hereby covenants and agrees that after the installation of any pipe line by it in any excavation made by it in the above described easement and right-of-way it will backfill any such excavation made by it so as to fill said excavation as nearly as practicable to the level of the surrounding ground, and will replace any oiled, asphalt or concrete surface with like material and will replace any fence removed by it. Executed this day of 20 THE PARKING AUTHORITY OF THE CITY OF NATIONAL CITY: By: By: 3 of 4 G 1TAE073-S V-Gut-SIJSP-BRDGIR WtD EED\2005-0069-A131 b.DOC s.05.06.09.07.05.00.ix 2005-0069-A, B STATE OF SS COUNTY OF On before me, the undersigned, a Notary Public in and for said State, personally appeared personally known to me (or proved to me on the basis of I, satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature: FOR NOTARY STAMP OR SEAL D 'I This is to certify that the interest in real property conveyed by the foregoing deed or grant to the SPRING VALLEY SANITATION DISTRICT a political subdivision and/or governmental agency is hereby accepted on behalf of its Board, pursuant to authority conferred by Resolution of said Board adopted on February 25, 1992, ar the Grantee consents to the recordation thereof by it duly authorized officer. Dated: JOHN KROSS, Deputy Director Real Estate Services Division Department of General Services GATA6073-SV-Out SUSP-BRDG\RW\DEED12005-0069-AB1 b.DOC 4 of 4 s.O5.O i.09.07.05.00.ix City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE July 19, 2005 8 AGENDA ITEM NO. ITEM TITLE Resolution of the City of National City declanng the removal of three underground fuel storage tanks an emergency and awarding a contract to Ace Excavating and Environmental Services for the removal of the tanks, two at the Public Works Yard and one at the Police Station. 4383 PREPARED BY DEPARTMENT EXT. Stephen Kirkpatrick Engineering EXPLANATION See attached Explanation. ( Environmental Review X N/A MIS Approval Financial Statement Approved By: /?/ -()' Fine Director $150,000 is available in account No. 196-409-500-598-1156 to perform this work. Account No. STAFF RECOMMENDATION4 It is recommended that the City Council designate the removal of the three fuel storage tanks an emergency according to Public Contract Code which requires a 4/5 majority and authorize the City Manager to execute a contract with Ace Excavating and Environmental Services to perfonu the work. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) Resolution No. 1. Resolution tankes A-200 (Rev. 7/03) Resolution of the City of National City declaring the removal of three underground fuel storage tanks an emergency and awarding a contract to Ace Excavating and Environmental Services for the removal of the tanks, two at the Public Works Yard and one at the Police Station. EXPLANATION The City owns seven non -operating underground fuel storage tanks. Six of the tanks are located in the Public Works Yard, and one of the tanks is located at the Police Station. Four of the tanks have been closed for years, and three of the tanks were closed on January 15, 2004. Two of the three recently closed fuel tanks are located at the Public Works yard. These tanks consist of a 1,500-gallon gasoline tank and a 5,000-gallon diesel tank. The third tank is located at the Police station. This 500-gallon diesel tank is used for the emergency generator. These tanks were closed due to the fact that they did not meet the current standard for secondary containment of the piping and sump system. A cost analysis performed in December of 2003 showed that it was more economical to purchase fuel at retail prices for approximately two years, than to make the investment in upgrading the tanks to current standards. Given the fact that the Public Works yard is planned for relocation or renovation the decision was made to close the tanks and buy retail fuel. Consequently on January 15, 2004 the City's fleet began fueling off -site. In addition, a 55-gallon. "day tank" will be installed at the police station since records showed that the generator had rarely been used and the "day tank" would be adequate. The groundwater around these tanks has been monitored, in conjunction with the San Diego County Department of Environmental Health, since at least 1987. The City is required to remove underground tanks if they are no longer needed. Working with the DEH, the plan was to "close" the tanks according to the DEH standards, continue monitoring of the groundwater around the tanks, and finally remove the tanks when the yard was moved or renovated. This plan was less disruptive to the operation of the yard, which was/is also the temporary location of the Fire Station. It was also thought that an "economy of scale" could be achieved by having the removal occur as part of a large grading operation that would occur as part of the remodel. However, the Public Works project is taking far longer than was anticipated as of January of 2004. The County DEH is requiring the tanks be removed as soon as possible. In fact, the County DEH is now stating the tanks must be removed promptly, and that further inaction could result in significant monetary penalties. Consequently on May 17, 2005 the City, through Resolution Number 2005-101, created a mid -year capital improvement project and allocated $150,000 of General Funds to remove the tanks as soon as possible. At the time it was believed that there was an understanding with DEH staff that the City would be designing a project to remove the tanks, and putting the project out to bid. That understanding seems to have fallen apart based upon a "Notice to Show Cause" letter received from the County in June of 2005. The letter is the first step in assessing administrative penalties. The goal now is to remove the tanks as soon as possible. Since time is so critical it is recommended the City Council designate the removal of the fuel tanks an "emergency" according to the California Public Contract Code which requires a 4/5 majority. By doing so the City is allowed to waive the bidding process. This allows the City to negotiate a cost with a contractor that is known and available immediately to perform the required work. After investigation, Ace Excavating, and Environmental Services is the contractor that staff believe is qualified, based upon their experience and reputation. It is further recommended that the City Manager be authorized to execute a contract with Ace Excavating and Environmental Services to perform the work. The removal of the tanks will be completed within the allocated budget. RESOLUTION NO. 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY FINDING THAT AN EMERGENCY EXISTS, APPROVING THE WAIVER OF BIDDING REQUIREMENTS AS AUTHORIZED BY SECTION 20168 OF THE PUBLIC CONTRACT CODE, AND AWARDING A CONTRACT TO ACE EXCAVATING AND ENVIRONMENTAL SERVICES FOR THE REMOVAL OF THREE UNDERGROUND STORAGE THANKS LOCATED ON CITY PROPERTY WHEREAS, the City owns seven non -operating underground fuel storage tanks; one fuel tank is located at the Police Station, and two recently closed fuel tanks are located at the Public Works yard; and WHEREAS, the City is required to remove non -operating underground fuel storage tanks; and WHEREAS, the San Diego County Department of Environmental Health has issued a Notice to Show Cause Letter requiring the aforementioned underground fuel storage tanks to be removed immediately, or else the City will be subject to substantial administrative penalties; and WHEREAS, California Public Contract Code Section 20168 provides that in case of an emergency, the City Council may pass a resolution by 4/5 vote declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health and property, and upon adoption of the resolution, may expend the necessary sums required by the emergency without complying with formal bidding requirements; and WHEREAS, City staff has investigated possible contractors to remove the underground fuel storage tanks, and has found Ace Excavating and Environmental Services qualified to do the work, based on their reputation and experience. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City determines that an emergency situation exists as described hereinabove, and it is found to be in the City's best interest to waive the bidding requirements for the removal of three underground storage tanks located on city property. Resolution No. 2005 — July 19, 2005 Page Two BE IT FURTHER RESOLVED that the City Council does hereby award a contract to Ace Excavating and Environmental Services for the removal of three underground storage tanks located on City property, at a cost not to exceed $150,000. PASSED and ADOPTED this 19th day of July, 2005. Nick Inzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney glAlnq Account Information Page: 1 7/12/2005 8:40:30AM CITY OF NATIONAL CITY Account No: E 196-409-500-598-1156 Title: UPGRADE FUEL TANKS/WATER BARRIER ALARMS Fiscal Year: 2005 Debit / Credit: D Status Code: 0 JC Required: N Standard Acct: Y Account Class: 00 General Budgeted: Y Allotment: N Locked: N Budget Account: Year End Estimate: 0.00 Budget Preparation History Year Dept Request Finance CM Ops Approval Proq Change CM Proq Change CC Council Adopted 2006 0.00 0.00 2005 0.00 0.00 2004 0.00 0.00 2003 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0,00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0,00 Account History Year Total Budget Encumbrances Expenditures Balance 2006 0.00 0.00 0.00 0.00 2005 8,000.00 0.00 1,913.82 6,086.18 2004 8,000.00 0.00 0.00 8,000.00 2003 8,000.00 0.00 0.00 8,000.00 Account Activity Period Total Budget Encumbrances Expenditures Balance 1 Totals : 8,000.00 0.00 8,000.00 0.00 Period Jrnal Doc Type 0.00 8,000.00 0.00 8,000.00 Transaction Detail Doc Date Post Date Group Reference Description Amount DIC 1 GJ BA bgt_adjust 7/2/2004 8/17/2004 btuano 05-014 CIP BUDGET CARRYOVER FY04-05 8.000.00 Budget Adjustments: 8,000.00 Encumbrances: 0.00 Activity: 0.00 Page: 1 City of National City, California COUNCIL AGENDA STATEMENT 9 MEETING DATE July 19, 2005 AGENDA ITEM NO. (ITEM TITLE TEMPORARY USE PERMIT —El Pueblo Neighborhood Council Block Party Saturday, July 30, 2005, 10 a.m. to 3 p.m. at K St. between 5th and 6th PREPARED BY Joe Olson, 336-4210 DEPARTMENT Building & Safety EXT. EXPLANATION This is a request from the Neighborhood Council to conduct the El Pueblo Block Party event on K Street between 5th and 6th Streets from 11 a.m. to 4 p.m. on Saturday, July 30, 2005. The event will include food and music as well as an Astrojump for the children. Food will be cooked on the Fire Department's mobile grill. A band and a D.J. will be present. The Neighborhood Council requests that K Street between 5th and 6th be closed and also requests the use of the City's P.A. system. The Neighborhood Council will notify the neighbors by letter. A waiver of fees is requested. The event and sponsoring organization meet the criteria in the City Council Policy No. 704 for a waiver of fees. Environmental Review X N/A MIS Approval Financial Statement Approved By: The City has incurred $345.00 for processing the TUP through various City Finance Director departments plus $339.06 for Public Works. Account No. STAFF RECOMMENDATION Approve the Application for a Tporary Use Permit subject to compliance with all conditions of approval and grant the waiver of fees. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS Listed Below) Resolution No. Application for a Temporary Use Permit with recommended approvals and conditions of approval. A-200 (Rev. 7/03) CITY OF NATIONAL CITY BUILDING AND SAFETY DEPARTMENT APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: Community Services EVENT: El Pueblo Block Party DATE OF EVENT: Saturday, July 30, 2005 TIME OF EVENT: 11:00 a.m. to 4:00 p.m. APPROVALS: PLANNING YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x ] PUBLIC WORKS/PARKS YES [ x ] NO [ ] SEE CONDITIONS [ x ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ x ] COMMUNITY SERVICE YES [ x I NO [ ] SEE CONDITIONS [ ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ x ] ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ x ] CITY ATTORNEY YES I x ] NO [ ] SEE CONDITIONS [ RISK MANAGER YES [ x ] NO I ] SEE CONDITIONS [ ] CONDITIONS OF APPROVAL: FIRE (619) 336-4550 1. Emergency vehicle access to be maintained at all times. 2. Access to be maintained at all times to all Fire Department connections and appliances (fire hydrants, sprinkler system connections, etc.). 3. Tents having an area in excess of 200 sq. feet and/or canopies in excess of 400 sq. feet or multiple tents and canopies placed together equaling or greater than the above stated areas, are to be used, they shall be flame-retardant treated and a permit from the Fire Department must be obtained. Permit fees are $349.00. Fees can only be waived by City Council. POLICE Assigned Patrol Personnel will be on -site for event. ENGINEERING No parking signs shall be posted a minimum of seventy-two (72) hours prior to set-up time for enforcement purposes. FINANCE 336-4330 1. A Business License is required IF monies are solicited, admittance charged or food, beverages or merchandise is sold. The organization holding this event and each vendor present at this event must have a separate business license. Vendors currently licensed by the City may operate on their existing license. 2. A list of all participating vendors (with their address, phone number and current National City business license number) is to be provided to the Revenue and Recovery Division of the Finance Department two weeks prior to the event for verification of business license numbers. 3. If any of the vendors or organizations is registered not -for -profit, there will be no charge for the Business License. However, a Business License certificate must be obtained for the City Revenue & Recovery Division, Business License Section. (Note: A clearance fee does apply to non-profit organizations located in National City that submit an initial business license application.) PUBLIC WORKS 1. Street Division — Post "No Parking" signs for event; set barricades on corners for use by event personnel to close street. 2. Facilities Division — Overtime if P.A. system is used. 3. Parks Division — No involvement. 4. Street cost is $89.06; facilities cost is $250.00. Total Public Works cost is $339.06. (THE SAN DIEGO COUNTY ENVIRONMENTAL HEALTH DEPARTMENT, NATIONAL CITY AND SAN DIEGO TRANSIT HAVE BEEN NOTIFIED VIA FAX) Actual Event Hours: Type of Event: Public Concert Parade Motion Picture Fair _ Demonstration Grand Opening Festival Circus Other Event Title: L PJ€i.O gt_OC(- P 1 1. 1 ECE!VtD NAY 2 6 2005 _ Community Event 4.Block Party Event Location: Sfred to' i7r Event Date(s): From .3/3O/Of to 4/3o/ose- Total Anticipated Attendance: BOO Month/Day/Year (/oo Participants) ( Spectators) m to am Setup/assembly/construction Date:./3° Start time: /0 0,31 Please describe the scope of your setup/assembly work (specific details): cee I �tS CJP Cafles p/ CS /1w/ -- a jokn.s -x.b(e s 4 c hal2S Dismantle Date: #30 Completion Time: am List any street(s) requiring closure as a result of this event. Include street name(s), day and time of closing and day and time of reopening. Sponsoring. Organization: CPM6406J I 1--\( Chief Officer of Organization (Name) (tS (; G X Not -for -Profit r Applicant (Name): ) ( ('e GZ_ Address: 11O E - k2 5- ccz--4- sue . Daytime Phone: (6,6) 3' covyf1aO Evening Phone: ( ) Fax: ( ) Contact Person "on site" day of the event: t�-rJQj1 COt2e2_ Pager/Cellular:'(off? 13 (8 For Profit NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS 1 Is your organization a "Tax Exempt, nonprofit" organization? Are admission, entry, vendor or participant fees required? If YES, please explain the purpose and provide amount(s): !L YES NO ` YES X NO $ Estimated Gross Receipts including ticket, product and sponsorship sales from this event. $ Estimated Expenses for this event. $ What is the projected amount of revenue that the Nonprofit Organization will receive as a result of this event? Please provide a DETAILED DESCRIPTION of your event. Include details regarding any components of your event such as the use of vehicles, animals, rides or any other pertinent information a out the vent. L pvz6 (0 ,vefyA too ►o j cr l -S lam, 6`1) 6/crk tat /�� w,'f( Giaw/ musi < a s Jonto a r ,eas . _ YESNO If the event involves the sale of cars, will the cars come exclusively from National City car�ti alers? If NO, list any additional dealers involved in the sale: jam`/ /"r 2 YES 7t' NO Does the event involve the sale or use of alcoholic beverages? — YES NO Will items or services be sold at the event? If yes, please describe: YES )L NO Does the event involve a moving route of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. X YES NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. YES _ NO Does the event involve the use of tents or canopies? If YES: Number of tent/canopies 3 Sizes (D I x (0 NOTE: A separate Fire Department permit is required for tents or canopies. YES _ NO Will the event involve the use of the City stage or PA system? In addition to the route map required above, please attach a diagram showing the overall layout and set-up locations for the following items: > Alcoholic and Nonalcoholic Concession and/or Beer Garden areas. > Food Concession and/or Food Preparation areas //�� Please describe how food will be served at the event: Fro/1'1 F-aa iee/0 If ypu intend to cook food in the event area please specify the method: 4[ GAS ELECTRIC CHARCOAL OTHER (Specify): > Portable and/or Permanent Toilet Facilities Number of portable toilets: 1 (1 for every 250 people is required, unless the applicant can show that there are facilities in the immediate area available to the public during the event) > Tables and Chairs ➢ Fencing, barriers and/or barricades > Generator locations and/or source of electricity ➢ Canopies or tent locations (include tent/canopy dimensions) > Booths, exhibits, displays or enclosures D Scaffolding, bleachers, platforms, stages, grandstands or related structures > Vehicles and/or trailers > Other related event components not covered above > Trash containers and dumpsters (Note: You must properly dispose of waste and garbage throughout the term of your event and immediately upon conclusion of the event the area must be returned to a clean condition.) Number of trash cans: Trash containers with lids: Describe your plan for clean-up and removal of waste and garbage during and after the event: oVC rr/ggI �vf 15 (€iefy Cane(c)S;o't 3 Please describe your procedures for both Crowd Control and Internal Security: 4(r€ pe✓S6rrul 6 ei /lance _ YES NO Have you hired any Professional Security organization to handle security arrangements for this event? If YES, please list: Security Organization: Security Organization Address: Security Director (Name): Phone: YES NO Is this a night event? If YES, please state how the event and surrounding area will be illuminated to ensure safety of the participants and spectators: Please indicate what arrangement you have made for providing First Aid Staffing and Equipment. Abe g`'!` , ✓Sat es( Pt&,„+c Please describe your Accessibility Plan for access at your event by individuals with disabilities' /¢f( & eitS s,; l ( ki Gtr'Ce5rr, fa f f/7'CI• fOc c'. f5. Please provide a detailed description pf your PARKING plan: ertCair"/017 tdtin ?iv W64 fs V #? vt . Please describe your plan for DISABLED PARKING: 4 L Please describe your plans to notify all residents, businesses and churches impacted by the event: f f le.ilM 74 `Au- e lb;ee .ze,AilOrs `ey • NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. tk. YES _NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: Number of Bands: t ba'D, Type of Music: ✓a Q too S K. YES NO Will sound amplification be used? If YES, please indicate: Start time: ‘,( &pm Finish Time t( am YES NO Will sound checks be conducted prior to the event? If YES, please indicate: Start time: am/'pm Finish Time am/pm Please describe the sound equipment that will be used for your event: YES Fireworks, rockets, or other pyrotechnics? If YES, please describe: YES _ NO Any signs, banners, decorations, special lighting? If YES, please describe: lf'5'1 S 6ar)ru2S Revised 10/3/01 5 Event: For Office Use Only Department Date Approved? Yes No Initial Specific Conditions of Approval Council Meeting Date: Approved: Yes No Vote: Kathleen Trees, Director Building & Safety Department 6 City of National City PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION AGREEMENT Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this, permit. Organization CortV JV1c41 Setut� Person in Charge of Activity N Address • S Telephone fQ 1 q 33 U u O Date(s) of Use (30 (C HOLD HARMLESS AGREEMENT As a condition of the issuance of a temporary use permit to conduct its activities on public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and the Parking Authority and its officers, employees and agents from and against any and all claims; demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attorneys fees and the costs of litigation, arising out of or related to the use of public property or the activity taken under the permit by the permittee or its agents, employees or contractors. Signature of Applicant eiVe_5— ` 0ffici I Title Date For Office Use Only Certificate of Insurance Approved Date 7 Non-profit organizations, which meet the criteria on page v of the instructions, will be considered for a waiver. If you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsored by a non-profit organization? 4 • 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (proceed to Question 2) No (Please sign the form and=.submit it with the TUP Application) 2. Please state the name and type of organization sponsoring the event for which the TUP is sought and then proceed to Question 3. Nameof //y the sponsoring orgaiIizaation- e,,r �J�� /U ohd C<, J iAtt Type of Organization v1/rl r'Lf (Service Club, Church, Social Service Agency etc.) Yes (Please proceed to Question 4) No (Please sign the form and submit it with the TUP Application) 4. Will the proceeds provide a direct financial benefit to an individual who resides in or is employed in the city, and who is in dire financial need due to health reasons or a death in the family? Yes (Please provide an explanation and details. No (Please proceed to Question 5) 5. Will the proceeds provide a direct financial benefit to city government such as the generation of sales tax? Yes (Please provide an explanation and details. No (Please proceed to Question 6) 6. Will the proceeds provide a direct financial benefit to a service club, social services agency, or other secular non-profit organization located within the city such as Kiwanis, Rotary, Lions, Boys and Girls Club? Yes (Please provide an explanation and details. No (Please proceed to Question 7) 7. Wall the proceeds provide a direct financial benefit to an organization, which has been the direct recipient of Community Development Block Grant (CDBG) funding? Yes Year funds were received: Funds were used to: No (P lease sign the form and submit it with the TUP Application) Date 9 S en 0 0— Astro ��rnP T ,,btcS ckiastI-S outer ctin op;c3 Canoti GgiLL v -t- MEETING DATE City of National City, California COUNCIL AGENDA STATEMENT July 19, 2005 10 AGENDA ITEM NO. ITEM TITLE TEMPORARY USE PERMIT — Common Man Wealth Industries/Kids Say Nope To Dope -- Nope to Dope Park Rally Saturday, July 30, 2005, 11 a.m. to 4 p.m. at Las Palmas Park PREPARED BY Joe Olson, 336-4210 DEPARTMENT Building & Safety EXT. EXPLANATION This is a request from Kids Say Nope To Dope to conduct the Nope To Dope Park Rally event at Las Palmas Park from 11 a.m. to 4 p.m. on Saturday, July 30, 2005. The event will include music, an Astrojump, games, arts and crafts as well as a drug prevention message. Prizes will also be provided. Hot dogs and hamburgers will be prepared on gas and charcoal grills. A portable C.D. player and a worship team will provide entertainment. This event is the same date and time at the El Pueblo Block Party on K Street. A waiver of fees is requested. The event and sponsoring organization meet the criteria in the City Council Policy No. 704 for a waiver of fees. Environmental Review X N/A MIS Approval Financial Statement The City has incurred $345.00 for processing the TI,JP through various City departments. Approved By: Finance Director Account No. STAFF RECOMMENDATION Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval and grant the waiver of fees. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. Application for a Temporary Use Permit with recommended approvals and conditions of approval. A-200 (Rev. 7/03) CITY OF NATIONAL CITY BUILDING AND SAFETY DEPARTMENT APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: Kids Say Nope To Dope EVENT: Kids Say Nope To Dope Park Rally DATE OF EVENT: Saturday, July 30, 2005 TIME OF EVENT: 1:00 p.m. to 4:00 p.m. APPROVALS: PLANNING YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x ] PUBLIC WORKS/PARKS YES [ x ] NO [ ] SEE CONDITIONS [ x FINANCE YES [ x ] NO 1 ] SEE CONDITIONS [ x COMMUNITY SERVICE YES [ x ] NO [ ] SEE CONDITIONS [ ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ x ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ x CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ x ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS I x 1 CONDITIONS OF APPROVAL: FIRE (619) 336-4550 1. Fire access to be maintained at all times. 2. Access to be maintained at all times to all Fire Department conncctions and appliances (fire hydrants, sprinkler system connections, etc.) within the area of the event. 3. Provide metal container with lid for disposal of hot coals. Container to be labeled "HOT COALS ONLY." 4. Provide at minimum 2-A:10-B:C fire extinguisher. POLICE No Police involvement requested or required. Planned activity, sponsor and group size mitigate any security concerns or need for police presence beyond normal beat patrols. RISK MANAGER 1. Minimum limits of one million dollars per occurrence of general liability insurance. 2. That the City Of National City and it's officials, employees, agents and volunteers be named as additional insured on above policy. 3. Standard hold harmless signed. (Done) ENGINEERING Placement of all signs and banners shall not encroach into street right-of-way. All signs and banners shall be placed as follows: 1. Along Euclid Ave 15' (fifteen feet) from the curb face. 2. Along "U" Ave and 1" St. 10' (ten feet) from the curb face. FINANCE 336-4330 1. A Business License is required IF monies are solicited, admittance charged or food, beverages or merchandise is sold. The organization holding this event and each vendor present at this event must have a separate business license. Vendors currently licensed by the City may operate on their existing license. 2. A list of all participating vendors (with their address, phone number and current National City business license number) is to be provided to the Revenue and Recovery Division of the Finance Department two weeks prior to the event for verification of business license numbers. 3. If any of the vendors or organizations is registered not -for -profit, there will be no charge for the Business License. However, a Business License certificate must be obtained for the City Revenue & Recovery Division, Business License Section. (Note: A clearance fee does apply to non-profit organizations located in National City that submit an initial business license application.) PUBLIC WORKS/PARKS Parks Division: 1. A permit is required for Astrojump and can be obtained through the Community Services department. 2. Extra trash cans will be provided. CITY ATTORNEY 1. Requires an indemnification and hold harmless agreement, and a policy of general liability insurance, with the City and its officials, employees. agents and volunteers as additional insureds, with amounts of coverage to be determined by the Risk Manager. (THE SAN DIEGO COUNTY ENVIRONMENTAL HEALTH DEPARTMENT, NATIONAL CITY AND SAN DIEGO TRANSIT HAVE BEEN NOTIFIED VIA FAX) Type of Event: Public Concert Parade Motion Picture Fair Demonstration _ Grand Opening Actual Event Hours: !' / am/pm to — Festival _ Community Event _ Circus — Block Party Other Event Title: /V 0Fa_ G - 1)4 -2_ PC k ea./ ( Event Location: L d S %�OJacks .J Event Date(s): FromsLIXJ3,3L1/X3C Total Anticipated Attendance: A -a Month/Day/Year ( Participants) ( Spectators) Setup/assembly/construction Date: 'liu/ 30Start time: Please describe the scope of your setup/assembly work (specific details): Dismantle Date: „ /_completion Time: t3O List any street(s) requiring closure as a result of this event. Include street name(s), day and time of closing and clay and time of reopening. Sponsoring Organization: _ For Profit Chief Officer of Organization (Name) C L,) Not -for -Profit Applicant (Name): Cc...4A) fro w�( S�yt10pp� 0' Address: - ` c5 HO-1- V cl. 1 Daytime Phone: &g 72Q /41,ening Phone: (_) .�C�`i.� //``�� Fax( ) Contact Person "on site" day of the event: 0, L.4„ J� Pager/Cellula(�Q77 VoS NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS 1 Is your organization a "Tax Exempt, nonprofit' organization? YES _ NO Are admission, entry, vendor or participant fees required? — YES ,4 NO If YES, please explain the purpose and provide amount(s): Estimated Gross Receipts including ticket, product and sponsorship sales from this event. ©Q ®. Estimated Expenses for this event. $1C1 What is the projected amount of revenue that the Nonprofit Organization will receive as a result of this event? Please provide a DETAILED DESCRIPTION of your event. Include details regarding any components of your event such as the use of vehicles,. animals, rides or any other pertinent information about the event. (,)• ) 3 C.---\ (.' Cr ' S c dr eueio-i 71/k O.nJ QS- YES /NO If the event involves the sale of cars, will the cars come exclusively from National City car dealers? If NO, list any additional dealers involved in the sale: 2 — YES tL NO — YES / NO Does the event involve the sale or use of alcoholic beverages? Will items or services be sold at the event? If yes, please describe: _ YES ' NO Does the event involve a moving route of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. 1_ YES NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. / YES _ NO Does the event involve the use of tents or canopies? YES: -- T Number of tent/canopies 9_ Sizes =y NOTE: A separate Fire Department permit is quire tents or canopies. _ YES/NO Will the event involve the use of the City stage or PA system? In addition to the route map required above, please attach a diagram showing the overall layout and set-up locations for the following items: > Alcoholic and Nonalcoholic Concession and/or Beer Garden areas. > Food Concession and/or Food Preparation areas / �j Please describe how food will be served at the event: (40+Q O 55' }d9 ,--1 6 LAy,303 m A) Axe k mot part-c§ QY', I fs { If you intend to cook food in the event area please specify the method: GAS ELECTRIC CHARCOAL OTHER (Specify): > Portable and/or Permanent Toilet Facilities Number of portable toilets: (1 for every 250 people is required, unless the applicant can show that there are facilities in the immediate area available to the public during the event) > Tables and Chairs > Fencing, barriers and/or barricades > Generator locations and/or source of electricity > Canopies or tent locations (include tent/canopy dimensions) > Booths, exhibits, displays or enclosures • Scaffolding, bleachers, platforms, stages, grandstands or related structures > Vehicles and/or trailers > Other related event components not covered above > Trash containers and dumpsters (Note: You must properly dispose of waste and garbage throughout the term of your event and immediately upon conclusion of the event the area must be returned to a clean condition.) Number of trash cans: 6 Trash containers with lids: Describe your plan for clean-up and removal of waste and garbage during and after the event: P/ V 3 Please describe your procedures for bpth Crowd Control and Internal Security: tpctSea Q l - "-- 3 ; PC:,sF'-k MCA. (4---p2.),5„,o_s./4-0 1=3 e voiAack4 CsLYA5 S YES 1 NO Have you hired any Professional Security organization to handle security arrangements for this event? If YES, please list: Security Organization: Security Organization Address: Security Director (Name): Phone: _ YES _L NO Is this a night event? If YES, please state how the event and surrounding area. T will be illuminated to ensure safety of the participants and spectators: Please indicate whatarrangement you have made providingforFirst Aid Staffing and Eq ipment. JL\t' c f`/%.SZ eke" �%�•�.`�--•a Plea a describe your Ac/�cessibijty Plan for acc ss at yo event by individuals{ ithdisabilities: pC �f C \ S , _ Z�_ (.L � `f Please provide a detailed description of your PARKING plan: f Pew (-C Mg 1ry -t,.� p c 1^ (A.0 U e h I € �oCes Please describe youLplan,for DISABLED PARKING: PckY his 0Sr5O 4 7 YES NO Will sound amplification be used? If YES, please indicate: Start time: / ( ran ®/pm Finish Time J r cc am/re YES y NO Will sound checks be conducted prior to the event? If YES, please indicate: Start time: am/'pm Finish Time am/pm Please describe the sound equipment that will be used for your event: Please describe your plans to notify all residents, businesses and churches impacted by the event: 0 NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. ,/YES NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: n Number of Bands/ )etS4tsit1 -1---La&Nt— [I 1eyyPy Type of Music: YES YES _ NO Any signs, banners, decorations, special lighting? If YES, please describe: Lc) sb NO Fireworks, rockets, or other pyrotechnics? If YES, please describe: Revised 10/3/01 5 Event: For Office Use Only Department Date Approved? Yes No Initial Specific Conditions of Approval Council Meeting Date: Approved: Yes No Vote: Kathleen Trees, Director Building & Safety Department 6 City of National City PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION AGREEMENT Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit. Organization k , c 3 /OC4 � / e QGp Person in Charge of Activity (L4L5 e) L) T��J� Address �c J Telephone/9) yl ,65-Date(s) of Use t� Ljl BPS HOLD HARMLESS AGREEMENT As a condition of the issuance of a temporary use permit to conduct its activities on public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and the Parking Authority and its officers, employees and agents from and against any and all claims; demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attorneys fees and the costs of litigation, arising out of or related to the use of public property or the activity taken under the permit by the permittee or its agents, employees or contractors. Signature of Applicant Official Title For Office Use Only Certificate of Insurance Approved Date 7 RE.'S. UEST RA EIS Non-profit organizations, which meet the criteria on page v of the instructions, will be considered for a waiver. If you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsored by a non-profit organization? /Yes (proceed to Question 2) No (Please sign the form and=submit it with the TUP Application) 2. Please state the name and type of organization sponsoring the event for which the TUP is sought and then proceed to Question 3. Name of the sponsoring orgat'Iization C Q r1-` /T-A..o fki h/IAA] 4it / N YfeS4(K,,AcK C) gyp-.— t\O-Q Type of Organization PaY0... is c rC (Service Club, Church, Social Service Agency, etc.) 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) X. No (Please sign the form and submit it with the TUP Application) 4. Will the proceeds provide a direct financial benefit to an individual who resides in or is employed in the city, and who is in dire financial need due to health reasons or a death in the family? Yes (Please provide an explanation and details. No (Please proceed to Question 5) 5. Will the proceeds provide a direct financial benefit to city government such as the generation of sales tax? Yes (Please provide an explanation and details. No (Please proceed to Question 6) 6. Will the proceeds provide a direct financial benefit to a service club, social services agency, or other secular non-profit organization located within the city such as Kiwanis, Rotary, Lions, Boys and Girls Club? Yes (Please provide an explanation and details. No (Please proceed to Question 7) 7. Will the proceeds provide a direct financial benefit to an organization, which has been the direct recipient of Community Development Block Grant (CDBG) funding? Yes Year funds were received: Funds were used to: Signature No (P lease sign the form and submit it with the TUP Application) ate 9 MEETING DATE City of National City, California COUNCIL AGENDA STATEMENT July 19, 2005 11 AGENDA ITEM NO. ITEM TITLE TEMPORARY USE PERMIT — Apostolic Assembly Temporary Trailers August 1, 2005 to September 1, 2005 at 125 Palm Ave, NC, CA 91950 PREPARED BY Joe Olson, 336-4210 DEPARTMENT Building & Safety EXT. EXPLANATION This is a request from the Apostolic Assembly to install for Integrity Charter school classroom and one restroom at 125 Palm Ave. August 1, 2005 to September 1, 2005. This temporary trailer(s) will be removed after permanent facility is completed. The trailers will be set up July 11, 2005 at 8 a.m. and will be removed September 6, 2005 at 3: 30 p.m. The church does not have an active building permit for the construction of new school facilities. Six parking spaces will be used for the temporary trailers. (Environmental Review X N/A MIS Approval Financial Statement The City has incurred $345.00 for processing the TUP through various City departments. Approved By: Finance Director Account No. STAFF RECOMMENDATION Approve the Applicatio for a Temporary Use Permit subject to compliance with all conditions of approval. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. Application for a Temporary Use Permit with recommended approvals and conditions of approval. A-200 (Rev. 7/03) CITY OF' NATIONAL CITY BUILDING AND SAFETY DEPARTMENT APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: Apostolic Assembly EVENT: Temporary Classroom Trailers DATE OF EVENT: August 1, 2005 to September 1, 2005 TIME OF EVENT: APPROVALS: PLANNING YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x PUBLIC WORKS YES [ x ] NO [ ] SEE CONDITIONS [ ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ ] COMMUNITY SERVICE YES [ x ] NO [ ] SEE CONDITIONS [ ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ ] PARKS YES [ x ] NO [ ] SEE CONDITIONS [ ] ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ ] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ x RISK MANAGER YES [ x ] NO [ I SEE CONDITIONS [ ] CONDITIONS OF APPROVAL: FIRE (619) 336-4550 1. Fire access to be maintained at all times, as defined by Fire Code. 2. Access to be maintained at all times to all Fire Department connections and appliances (fire hydrants, sprinkler system connections, etc). 3. 2A:10BC fire extinguishers required at classrooms. Fire extinguisher locations to he plainly marked. 4. Fire alarm systems to be installed in classrooms. Installation to be accomplished by licensed contractor in compliance with California Fire Code 2001 edition and current NFPA Standards. FINANCE 336-4330 1. A Business License is required IF monies arc solicited, admittance charged or food, beverages or merchandise is sold. The organization holding this event and each vendor present at this event must have a separate business license. Vendors currently licensed by the City may operate on their existing license. 2. A list of all participating vendors (with their address, phone number and current National City business license number) is to be provided to the Revenue and Recovery Division of the Finance Department prior to the event for verification of business license numbers. 3. If any of the vendors or organizations is registered not -for -profit, there will be no charge for the Business License. However, a Business License certificate must be obtained for the City Revenue & Recovery Division, Business License Section. (THE SAN DIEGO COUNTY ENVIRONMENTAL HEALTH DEPARTMENT, NATIONAL CITY AND SAN DIEGO TRANSIT HAVE BEEN NOTIFIED VIA FAX) Type of Event: _ Public Concert Parade Motion Picture Fair _ Demonstration _ Grand Opening Festival _ CcIMIDSIIINANIAtfErr DEPT Circus — BI°cIctitattE i V E D o/72 iz'X ez JUN 0 2 2005 Event Title:/l14%. Z ®,UC G�SS ZYX 3 NATIONAL CITY, CALIF. Event Location:%26- ,/1/%a v.1 €i g/X.W Event Date(s): From a--/-6 5- to ? f -®47 Total Anticipated Attendance: Z.05T pe - ' 5 Month/Day/Year ( Participants) ( Spectators) Actual Event Hours: &! to3 an-6) 7:V Setup/assembly/construction Date: LT // Start time: `g;cc, ,f}jif Please describe the scope of your setup/assembly work (specific details): Dismantle Date f tj6 Completion Time: 3,..3U am List any street(s) requiring closure as a result of this event. Include street name(s), day and time of closing and day and time of reopening. Sponsoring Organization: �,.6ToGr. 55(5-7/7i.e9For Profit X Not -for -Profit Chief Officer of Organization (Name) ,1 "10¢�4- f l�,.7,-9' ..,i,,17,0,5. 0 yfi'/t/4y(Je..F Applicant (Name): 3,/. /9- ,2,,-Z-.0.7-41 Address:/ ,2 4% /d1 2 9, J4k c 7 j 9r1,5-0 Daytime Phone: of Phone: )`f -674.7 Fax: j V7 /57 Contact Person "on site" day of the event: 54 )8, --e% Pager/Cellular: NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY'OFFICIALS 1 Is your organization a "Tax Exempt, nonprofit" organization? RYES _ NO Are admission, entry, vendor or participant fees required? _ YES X NO If YES, please explain the purpose and provide amount(s): $ Estimated Gross Receipts including ticket, product and sponsorship sales from this event. Estimated Expenses for this event. What is the projected amount of revenue that the Nonprofit Organization will receive as a result of this event? Please provide a DETAILED DESCRIPTION of your. event. Include details regarding any components of your event such as the use of vehicles,. animals, rides or any other pertinent information about the event. 1 ✓'�' � c k) 1�� .a® %fSlir ✓i4r�Y %/ 1 � ,vn fvve i,7?, _ YES _ NO If the event involves the sale of cars, will the cars come exclusively from National City car dealers? If NO, list any additional dealers involved in the sale: 2 — YES NO Does the event involve the sale or use of alcoholic beverages? YES NO Will items or services be sold at the event? If yes, please describe: YES NO Does the event involve a moving route of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. YES NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. _ YES NO _ YES jC NO Does the event involve the use of tents or canopies? If YES: Number of tent/canopies Sizes NOTE: A separate Fire Department permit is required for tents or canopies. Will the event involve the use of the City stage or PA system? In addition to the route map required above, please attach a diagram showing the overall layout and set-up locations for the following items: > Alcoholic and Nonalcoholic Concession and/or Beer Garden areas. > Food Concession and/or Food Preparation areas Please describe how food will be served at the event: 4 If you intend to cook food in the event area please specify the method:. GAS ELECTRIC CHARCOAL X OTHER (Specify): fc 41/7 OrV 7 > Portable and/or Permanent Toilet Facilities Number of portable toilets: (1 for every 250 people is required, unless the applicant can show that there are facilities in the immediate area available to the public during the event) > Tables and Chairs > Fencing, barriers and/or barricades > Generator locations and/or source of electricity > Canopies or tent locations (include tent/canopy dimensions) > Booths, exhibits, displays or enclosures • Scaffolding, bleachers, platforms, stages, grandstands or related structures > Vehicles and/or trailers > Other related event components not covered above > Trash containers and dumpsters (Note: You must properly dispose of waste and garbage throughout the term of your event and immediately upon conclusion of the event the area must be returned to a clean condition.) Number of trash cans: Trash containers with lids: Describe your plan for clean-up and removal of waste and garbage during and after the event: 3 Please describe your procedures for both Crowd Control and Internal Security: YES 1NO Have you hired any Professional Security organization to handle security arrangements for this event? If YES, please list: Security Organization: Security Organization Address: Security Director (Name): Phone: _ YES NO Is this a night event? If YES, please state how the event and surrounding area will be illuminated to ensure safety of the participants and spectators: Please indicate what arrangement you have made for providing First Aid Staffing and Equipment, Please describe your Accessibility Plan for access at your event by individuals with disabilities: Please provide a detailed description of your PARKING plan: ��2aGr/[�G Gr�iGG l�c� //S c Y� % �/ % fGV/C�/1�! . d'Q s. Please describe your plan for DISABLED PARKING: 4 Please describe your plans to notify all residents, businesses and churches impacted by the event: .iY1 j 1,r1 / / 7 t��—i�ac�/ra )/%% NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. YES NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: Type of Music: YES NO Will sound amplification be used? If YES, please indicate: T� Start time: am/pm Finish Time am/pm YESNO Will sound checks be conducted prior to the event? If YES, please indicate: YES Number of Bands: Start time: am/'pm Finish Time am/pm Please describe the sound equipment that will be used for your event: NO Fireworks, rockets, or other pyrotechnics? If YES, please describe: YES NO Any signs, banners, decorations, special lighting? If YES, please describe: Revised 10/3/01 5 Event: For Office Use Only Department Date Approved? Yes No Initial Specific Conditions of Approval Council Meeting Date: Approved: Yes No Vote: Kathleen Trees, Director Building & Safety Department 6 City of National City PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION AGREEMENT Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit. Organization /, ?- /� %Z,c5 7,/• Person in Charge of Activity 57,e7,��v//c-, ,4 . 0.47/zJ ,V Z- Address / '5 A/ 9 d Telephon (r, %) >t/'`` �5 "3 Date(s) of Use HOLD HARMLESS AGREEMENT As a condition of the issuance of a temporary use permit to conduct its activities on public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and the Parking Authority and its officers, employees and agents from and against any and all claims, demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attorneys fees and the costs of litigation, arising out of or related to the use of public property or the activity taken under the permit by the permittee or its agents, employees or contractors. p / /7 2cd�v For Office Use Only Certificate of Insurance Approved Date 7 REIJESTFOR N VVAIVER"Q�, SEES Non-profit organizations, which meet the criteria on page v of the instructions, will be considered for a waiver. If you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsored by a non-profit organization? Yes (proceed to Question 2) No (Please sign the form andsubmit it with the TUP Application) 2. Please state the name and type of organization sponsoring the event for which the TUP is sought and then proceed to Question 3. Name of the sponsoring organization 42 5 p6/e..'- ®G il%�%/ca cJ4 c ,7 Type of Organization C c)��,tl (Service Club, Church, Social Service Agency, etc.) 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) X' No (Please sign the form and submit it with the TUP Application) 4. Will the proceeds provide a direct financial benefit to an individual who resides in or is employed in the city, and who is in dire financial need due to health reasons or a death in the family? Yes (Please provide an explanation and details. No (Please proceed to Question 5) 5. Will the proceeds provide a direct financial benefit to city government such as the generation of sales tax? Yes (Please provide an explanation and details. No (Please proceed to Question 6) 6. Will the proceeds provide a direct financial benefit to a service club, social services agency, or other secular non-profit organization located within the city such as Kiwanis, Rotary, Lions, Boys and Girls Club? Yes (Please provide an explanation and details. No (Please proceed to Question 7) 7. Will the proceeds provide a direct financial benefit to an organization, which has been the direct recipient of Community Development Block Grant (CDBG) funding? Yes Year funds were received: Funds were used to: Signature No (P lease sign the form and submit it with the TUP Application) i7 9&3 ate 9 National City Apostolic Assembly of the Faith in Christ Jesus 125 Palm Avenue National City, CA 91950 Office: (619) 474-5643 Senior Pastor: Misael Zaragoza To: City Council of National City From: Apostolic Assembly of National City Subject: Temporary Classroom Building www.apostolicassemblyofnc.org May 25, 2005 We, the undersigned request your permission for the approval of temporary classrooms and restrooms for the Integrity Charter School, at the church property located at, 125 Palm Avenue, National City, CA 91950. We the undersigned are neighbors, parents of students and church members. Temporary classroom will be removed upon the completion of our new edifice. We thank you for the prompt consideration in this matter. We look forward to serving our community. Respectfully, // Misael J. Z-. . oza, Senjoe : ".,� Robert Dominguez, Co - "And are built upon the foundation of the apostles and prophets, Jesus Christ Himself being the chief corner stone. "EPHESSIANS 220 June 1, 2005 The parents of Integrity Charter School support the request by National City Apostolic Church to place a portable classroom and restroom building on their site. This will allow our students to have a uch ne-s = =itio,al classroo and additional restrooms for their use. e e-L6 ,1 ,461, 4 a (2 7y( QLL <O 0 cat- -3Q1c,a ‘3crociwcCe Go{07a V {Ye✓a. A 41,e:A ae J-e-0-(A4 (/e7.4, To: City Council of National City From: Apostolic Assembly of National City Subject: Temporary Building The undersigned are requesting your approval of the installatio of a temporary cla Broom & restrooms. Temporary building is to be installed at church pro�rty at, 12Palm Aj enue,ational City, CA. 91950. Page 1of`/ QLa 1cpn r _. �.CuS -'rQ / Page). of `' 6 0, 1 2/ f 1 FL 1 0 7 vv► D (_A: '-)TaiLe-c ->„ c.„07.2fre‘z, / ,/ / 1 &./eik go ozy, t ,' 4 .elan 1e4A CIA0W AAA 4 Page of y e vS !Lae' (L/ Z H©6P /-z_ 2kjei K, S 6°1 Jtcc Cz-s-iriD , ds7). g4-f- FPt& ayvd AAk\to\ Ll 2' tx5 71, 1 Page4 of 9 E ACORQ AGENCY 00015508 CUSTOMER ID _......... _... INSURED DATE (MMIDDIYY) THIS IS EVIDENCE THAT INSURANCE AS IDENTIFIED BELOW/ HAS BEEN�' ion ° 04/15/2005 UED, IS IN FORCE, AND CONVEYS ALL THE RIGHTS AND PRIVILEGES AFFORDED UNDER THE POLICY. PRODUCER PHONE...... ..... ..... _.. (A/c, No, Ext): (800) 843-6054 The Cutler Group, Cutler Church Insurance Services 329 West State Street Redlands, CA 92373 CODE: SUB CODE: National City Apostolic Assembly of the Faith 125 Palm Ave National City, CA 91950 070.RTYyIN 1 OCATIONLoc R8LNKT COMPANY - _-- GuideOne Specialty 1111 Ashworth Road West Des Moines, IA 50265-3538 . I.. NUMBER LOAN NUMBER I POLICYCYNUMBER EFFECTIVE DATE EXPIRATION DATE 01/01/2005 ] 01/01/2006 ES. ..._..__................................. THIS REPLACES PRIOR EVIDENCE DATED: 1236-223 CONTINUED UNTIL TERMINATED IF CHECKED 2 Loc 00001 Bldg 00001 125 Palm Ave National City, CA 91950 3 Loc 00002 Bldg 00001 306 Palm Ave. ,National City, CA 91950 2 2 3 3 COVERAGE/PERILS/FORMS Blanket, RC, Special (Including theft) - Detail Building, RC, Special (Including theft) - Detail Business Personal Property, RC, Special (Including theft) - Detail Building, RC, Special (Including theft) - Detail Business Personal Property, RC, Special (Including theft) - Detail AMOUNT OF INSURANCE DEDUCTIBLE ......... 2,847,991E 500 1,538,4541 500 277,0001 500 932,537' 500 100,000:: 500 ... . _.: »'.... ..:m., ,« .+:far ..T.J ^' S3v,-. t4 z..+..YmF 4 . CNL .✓Fry ^"4 e 5 '?te.• I Y. T°yP`ERn:>�.-.-. THE POLICY IS SUBJECT TO THE PREMIUMS, FORMS, AND RULES IN EFFECT FOR EACH POLICY PERIOD. SHOULD THE POLICY BE TERMINATED, THE COMPANY WILL GIVE THE ADDITIONAL INTEREST IDENTIFIED BELOW th i rtv DAYS WRITTEN NOTICE, AND WILL SEND NOTIFICATION OF ANY CHANGES TO THE POLICY THAT WOULD AFFECT THAT INTEREST, IN ACCORDANCE WITH THE POLICY PROVISIONS OR AS REQUIRED BY LAW. IQAIC lNTEFik,. NAME AND ADDRESS Ironstone Bank Loan Serviceing Department-DAC 20 Raleigh, NC 27611-7598 X ; MORTGAGEE LOSS PAYEE LOAN # AUTHORIZED REPRESENTATIVE Charlie Cutler ADDITIONAL INSURED fax 858-454-6062 G'en.:.: 7427 ACORD, CERTIF.! CATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) PRODUCER John Burnham Insurance Svcs 11 CA LIC 0099753 / 750 B St, t 240'J . Diego, CA 92101 231-1010 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDE:D BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC # INSURED San Diego County Schools/JPA: Integrity Charter School 125 Palm Avenue National City, CA 19'1951;1 INSURER A: Ins Co of the State of PA INSURERE: Issued with MiTS'; Insurance INSURERC: Services permission INSURER D: INSURER E: .:/ COVERAGES_ ` ', THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE PO _ICY PE ' 7D1NC{CATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDIT ON OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EZTIElpAT_;MA`rBE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS• EXCL SINS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. s - LTR • •.. INSRD TYPE OF INSURANCE POLICY NUMBER POLICY ErrFECTIVE DATE (MMIDO/YYI POLICY EXPIRE, -ION DATE (MM/D05^'1 LIMITS A GENERAL X LIABILITY COMMERCIAL GENERAL LIABILITY 42034394 Limit in 07/01/03 . ' 07/01/04 J EACH OCCURRENCE S 7 50 000 DAMAGE TO RENTED PRc M1IISES (tea oc^urtn^_ e.' I...-1...-1 CLAIMS MADE I X I OCCUR addit On to MED EXP (Any one Berson--. $ $250,000 S.I.R. PERSONAL & ADV INJURY 4 S GENERAL AGGREGATE I Si 000,000 GEN'L AGGREGATE LIMIT APPLIES PER: POLICY i I P CT LOC. PRODUCTS - COMP/OP AGO S AUTOMOBILE 1--- , I LIABILITY ANY AUTO ALL OWNED AUTOS COMBINED SINGLE LIMIT (Es acciaenti BODILY INJURY (Per ❑erso^; 5 BODILY INJURY I (Per acaoen!). - PROPERTY DAMAGE (Per accident) ` GARAGE LIABILITY ANY AUTO AUTO ONLY • EAACCIDENT 5 OTHER THAN EA ACC S AUTO ONLY: AGG S EXCESS/UMBRELLA IOCCUR IDEDUCTIBLE RETENTION LIABILITY S CLAIMS MADE EACH OCCURRENCE 5 AGGREGATE 5 S , 5 WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFRCER/MEMBER EXCLUDED? I.' ves. oescnbe under SPECIAL PROVISIONS below I TORY I IMITS I OTH ER E.L. EACH ACCIDENT S ) E.L. DISEASE • EA EMRLOYEEI 5 E.L. DISEASE • POLICY LIMIT S OTHER DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS Re: Use of premises 125 Palm Avenue, National City, CA 91950. Certificate holder is additional insured per attached form. Coverage effective 8/10/03. CERTIFICATE HOLDER CANCELLATION ALJgotice for Non-Pavment of Premium • Apostolic Assembly 125 Palm Avenue National City, CA 91950 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL q0 DAYS WRITT F^' NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO CO SO SH. IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE A -A C , A' ACORD 25 (2001/08) 1 of 2 99'M 10900 HI TTC e ACORD CORPORATION 1988 IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the poficy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION 1S WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORN 25-S (2001/08) 2 of 2 #M10900 v„c, r,v, to r ACORDry CERTIFICATE OF LIABILITY INSURANCE DATE(MM/OD/YYYY) 09/04/03 PRODUCER John Burnham Insurance Svcs 11 CA Lic 0099753 1750 B St,#2400 Sr `logo, CA 92101 6'.. .31-1010 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC # INSURED San Diego County Schools/JPA Integrity Charter School 125 Palm Avenue National City, CA 91950 INSURER A: Permissively Self -Insured INSURER B: INSURER C: . -••-., , INSURER D: '- _- INSURER E: COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. I NSR�Ae,,6D't, LTP, INSRD TYPE OF INSURANCE POLICY NUMBER POUCY EFFECTIVE DATE (MM/DD/YY) POLICY EXPIRATION DATE (MM/00/YY LIMITS I GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY ' EACH OCCURRENCE 5 DAMAGE TO RENTED .R=M:SES (Ea occurrence' S CLAIMS MADE OCCUR Iv1ED EXP (Any one person) S PERSONAL & ADV INJURY S GENERAL AGGREGATE S GEN'L AGGREGATE 0 P LICY LIMIT APPLIES PER: PRO. PRO• I LOC JECT I • COMP/OP AGG S rPRODUCTS 1 AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS COMBINE'] SINGLE LIMIT (Ea acc:dent; 5 BODILY INJURY (re- person) S BODILY INJURY (?e� axipen;; S PROPERTY DAMAGE (Pe- accioent) S GARAGE LIABILITY ANY AUTO AUTO ONLY • EA ACCIDENT S OTHER THAN EA ACC S AUTO ONLY: AGG $ EXCESS/UMBRELLA OCCUR DEDUCTIBLE RETENTION LIABILITY —^ CLAIMS MADE S - EACH OCCURRENCE' S AGGREGATE $ 5 S S A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? If yes. describe under SPECIAL PROVISIONS below JPA Memorandum of Coverage 07/01/03 07/01/04 WCSTATU- TORY!IMITS OTH- ER E.L. EACH ACCIDENT S1,000 ,000 E.L. DISEASE - EA EMPLOYE S1,000,000 E.L. DISEASE • POLICY LIMIT 51 ,000,000 OTHER DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT/ SPECIAL PROVISIONS CERTIFICATE HOLDER Apostolic Assembly 125 Palm Avenue National City, CA 91950 CANCELLATION Ten Day Notice for Non -Payment of -Premium SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 40 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOI-DER NAMED TQ THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBUGATION OR UABILITY OF ANY KIND UPON THE INSURER, -ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE ACORD 25 (2001JO8) 1 of 2 #M11137 TTC 0 ACORD CORPORATION 1988 IMPORTANT If the certificate holder is an ADDITIONAL INSURED; the policy(ies) must be endorsed... A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). - If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between. the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 25-S (2001/08) 2 of 2 #M11137 NATIONAL CITY APOSTOLIC ASSEMBLY OF THE FAITH IN CHRIST JESUS SENIOR PASTOR: MISAEL 1 ZARAGOZA TEMPORARY BUILDINGS DRINI,WAY t L •- 1 I .1 I PROPOSED PLOT PLAN SCALE: 1" = 0" .WAY PA AY PALM AVE, \KY bUILLAINIUS DRIVEVVAY FX1511NG TWO PROPOSED PLOT I' SCALE: l" 2C' MEETING DATE City of National City, California COUNCIL AGENDA STATEMENT July 19, 2005 12 AGENDA ITEM NO. ITEM TITLE TEMPORARY USE PERMIT — National City Public Library Gala Event August 12, 2005, 7 p.m. to 9 p.m. at 1401 National City Blvd. PREPARED BY Joe Olson, 336-4210 DEPARTMENT Building & Safety EXT. EXPLANATION This is a request from the National City Public Library to conduct a Gala Event at the new library on 1401 National City Blvd. on August 12, 2005. This event is not open to the public and will occur on library property only. IIors d'oeuvres and beverages will be served. The event will include a classical guitarist. as well. Library staff will be present. A waiver of fees is requested. The event and sponsoring organization meet the criteria in the City Council Policy No. 704 for a waiver of fees. The library is requesting permission to serve alcohol. Environmental Review X N/A MIS Approval Financial Statement Approved By: The City has incurred $345.00 for processing the Finance Director TUP through various City departments. Account No. STAFF RECOMMENDATION Approve the Application for a Torary Use Permit subject to compliance with all pP PP conditions of approval and grant the waiver of fees . BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. Application for a Temporary Use Permit with recommended approvals and conditions of approval. A-200 (Rev. 7/03) Type of Event: Public Concert Parade Motion Picture Fair Demonstration Gala Event Event Title: National City Public Library Gala Event Event Location: 1401 National City Blvd Event Date(s): From 08/12/2009 To 08/12/2005 Actual Event Hours: 7 pm to 9 pm Total Anticipated Attendance: 300 ( Participants ): 300 ( Spectators): 0 Setup/assembly/construction Date: 08/12/2005 Start time: 5 pm Please describe the scope of your setup/assembly work (specific details): Custodial support needed Dismantle Date: 08/12/2005 Completion Time: 10 pm List any street(s) requiring closure as a result of this event. Include street name(s), day and time of closing and day and time of reopening. NONE Sponsoring Organization: National City Public Library Chief Officer of Organization (Name) - Anne Campbell Applicant (Name): Monica O'Hara Address: 200 E 12' St., National City, CA 91950 Daytime Phone: (619) 336-4297 Evening Phone: Contact Person "on site" day of the event: Monica O'Hara Email: literacy(sdcoe.k12.ca.us Pager/Cellular 507-0572 NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATEL Y AVAILABLE TO CITY OFFICIALS For Profit Not -for -Profit Fax: (619) 336-4368 Is your organization a "Tax Exempt, nonprofit' organization? Are admission, entry, vendor or participant fees required? If YES, please explain the purpose and provide amount(s): X YES NO YES X NO Estimated Gross Receipts including" ticket, product and sponsorship sales from this event. -Estimated Expenses for this event. What is the projected amount of revenue that the Nonprofit Organization will receive as a result of this event? Please provide a DETAILED DESCRIPTION of your event. Include details regarding any components of your event such as the use of vehicles, animals, rides or any other pertinent information about the event. Classical guitar music in foyer followed by welcoming speech and thank you to all donors. Hors d'oeuvres, champagne, and bottled water will be available in library. YES NO If the event involves the sale of cars, will the cars come exclusively from National City car dealers? If NO, list any additional dealers involved in the sale: 2 YES NO Does the event involve the sale or use of alcoholic beverages? Champagne will be served. Yes X No Will items or services be sold at the event? If yes, please describe: X NO Yes X NO Does the event involve a moving route of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route, indicate the direction of travel, and provide a written narrative to explain your route. Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. YES NO Does the event involve the use of tents or canopies? If YES: NOTE: A separate Fire Department permit is required for tents or canopies. YES NO Will the event involve the use of the City stage or PA system? In addition to the route map required above, please attach a diagram showing the overall layout and set-up locations for the following items: - Alcoholic and Nonalcoholic Concession and/or Beer Garden areas. Food Concession and/or Food Preparation areas Please describe how food will be served at the event: Hors d'oeuvres and beverages will be served in the meeting room. If you intend to cook food in the event area please specify the method: GAS ELECTRIC CHARCOAL OTHER (Specify): - Portable and/or Permanent Toilet Facilities Number of portable toilets: (1 for every 250 people is required, unless the applicant can show that there are facilities in the immediate area available to the public during the event) - Tables and Chairs - Fencing, barriers and/or barricades - Generator locations and/or source of electricity - Canopies or tent locations (include tent/canopy dimensions) - Booths, exhibits, displays or enclosures - Scaffolding, bleachers, platforms, stages, grandstands or related structures - Vehicles and/or trailers - Other related event components not covered above - Trash containers and dumpsters (Note: You must properly dispose of waste and garbage throughout the term of your event and immediately upon conclusion of the event the area must be returned to a clean condition.) Number of trash cans: Describe your plan for clean-up and removal of waste and garbage during and after the event: City will provide trash receptacles and dispose of garbage. 3 Please describe your procedures for both Crowd Control and Internal Security: Event is not open to public — by invitation only. Library staff will be present. YES X NO Have you hired any Professional Security organization to handle security arrangements for this event? If YES, please list: Security Organization: Security Organization Address: Security Director (Name): Phone: X YES NO Is this a night event? If YES, please state how the event and surrounding area will be illuminated to ensure safety of the participants and spectators: The library has outside lighting. Please indicate what arrangement you have made for providing First Aid Staffing and Equipment. Library phones will be available to call the fire department. Please describe your Accessibility Plan for access at your event by individuals with disabilities: The library complies with ADA regulations. Please provide a detailed description of your PARKING plan: On street parking, parking in lot and adjacent to baseball field and surrounding areas. Please describe your plan for DISABLED PARKING: Marked curbside parking and designated spaces in lot. n Start time: 7 p.m. Finish Time: 9 p.m. Will sound checks be conducted prior to the event? If YES, please indicate: Start time:. rmisn lime: Please describe the sound equipment that will be used for your event: Portable amplifier Please describe your plans to notify all residents, businesses and churches impacted by the event: NIA NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. YES NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: 0 Number of Bands: Type of Music: Classical Guitar (Indoor Event) X YES NO Will sound amplification be used? If YES, please indicate: YES NO YES X NO Fireworks, rockets, or other pyrotechnics? If YES, please describe: YES X NO Any signs, banners, decorations, special lighting? If YES, please describe: Revised 10/3/01 5 City of National City PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION AGREEMENT Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City I its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit. Organization Person in Charge of Activity Address Telephone Date(s) of Use HOLD HARMLESS AGREEMENT As a condition of the issuance of a temporary use permit to conduct its activities on public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and its officers, employees and agents from and against any and all claims, demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attorneys fees and the costs of litigation, arising out of or related to the use of public property or the activity taken under the permit by the perrnittee or its agents, employees or contractors. Signature of Applicant Official Title Date For Office Use Only Certificate of Insurance Approved Date Event: Department Approved? Yes For Office Use Ditty Specific Conditions of Approval Council Meeting Date: Approved: Yes No Vote: Kathleen Trees, Director Building & Safety Department Date: No Initial Non-profit organizations, which meet the criteria on page v of the instructions, will be considered for a waiver. If you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsored by a non-profit organization? Yes (proceed to Question 2) X No (Please sign the form and submit it with the TUP Application) 2. Please state the name and type of organization sponsoring the event for which the TUP is sought and then proceed to Question 3. Name of the sponsoring organization Type of Organization .- (Service Club, Church, Social Service Agency, etc.) 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) No (Please sign the form and submit it with the TUP Application) 4. Will the proceeds provide a direct financial benefit to an individual who resides in or is employed in the city, and who is in dire financial need due to health reasons or a death in the family? Yes (Please provide an explanation and details. No (Please proceed to Question 5) 8 5. Will the proceeds provide a direct financial benefit to city govemment such as the generation of sales tax? Yes (Please provide an explanation and details. No (Please proceed to Question 6) 6. Will the proceeds provide a direct financial benefit to a service club— social services agency, or other secular non-profit organization located within the city such as Kiwanis, Rotary , Lions, Boys and Girls Club? Yes (Please provide an explanation and details. No (Please proceed to Question 7) 7.Will the proceeds provide a direct financial benefit to an organization, which has been the direct recipient of Community Development Block Grant (CDBG} funding? Yes Year funds were received: Funds were used to: No (P lease sign the form and submit it with the TUP Application) Date/ IS�p 9 CITY OF NATIONAL CITY BUILDING AND SAFETY DEPARTMENT APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: National City Public Library EVENT: National City Public Library Gala Event DATE OF EVENT: August 12, 2005 TIME OF EVENT: 7-9 pm APPROVALS: PLANNING YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x ] PUBLIC WORKS/PARKS YES [ x ] NO [ ] SEE CONDITIONS [ x ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ x ] COMMUNITY SERVICE YES [ x ] NO [ ] SEE CONDITIONS [ ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ x ] ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ ] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ x ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ x ] CONDITIONS OF APPROVAL: FIRE (619) 336-4550 1. Access to be maintained at all times to all Fire Department connections and appliances (fire hydrants, sprinkler system connections, etc). 2. Fire extinguishers required to be maintained at all times to all Fire Department connections and appliances, (fire hydrants, sprinkler systems connections, etc.). 3. Life Safety systems to be fully operational. PUBLIC WORKS/PARKS (619) 336-4580 1. Street Division: No involvement, but ready to assist as necessary. 2. Facilities Division: Custodial assistant, 3 hours at $100.00 3. Parks: Will be ready to help as necessary. CITY ATTORNEY Requires an indemnification and hold harmless agreement, and a policy of general liability insurance, with the City and its officials, employees, agents and volunteers as additional insureds, with amounts of coverage to be determined by the Risk Manager. FINANCE 336-4330 1. A Business License is required IF monies are solicited, admittance charged or food, beverages or merchandise is sold. The organization holding this event and each vendor present at this event must have a separate business license. Vendors currently licensed by the City may operate on their existing license. 2. A list of all participating vendors (with their address, phone number and current National City business license number) is to be provided to the Revenue and Recovery Division of the Finance Department prior to the event for verification of business license numbers. 3. If any of the vendors or organizations is registered not -for -profit, there will be no charge for the Business License. However, a Business License certificate must be obtained for the City Revenue & Recovery Division, Business License Section. (Note: A clearance fee does apply to Not -profit organizations located in National City that submit an initial business license application) RISK MANAGER 1. Provide minimum limits of one million dollars per occurrence of general liability and liquor liability insurance. 2. Name the City Of National City and its officials, employees, agents and volunteers as additional insureds on the policies. POLICE (619) 336-4400 No direct police involvement requested or required. Size and composition of group does not necessitate police presence. Alcoholic beverage (champagne) is okay as long as it is not sold. Event cannot be billed as a "fundraiser" and no donations can be accepted. If aforementioned criteria is met, no ABC license is required and no "one day" special permit is needed. Event must be restricted by invitation only as described on page 4 of application. (THE SAN DIEGO COUNTY ENVIRONMENTAL HEALTH DEPARTMENT, NATIONAL CITY AND SAN DIEGO TRANSIT HAVE BEEN NOTIFIED VIA FAX) City of National City, California COUNCIL AGENDA STATEMENT 13 MEETING DATE July 19, 2005 AGENDA ITEM NO. "ITEM TITLE TEMPORARY USE PERMIT — NC Public Library Grand Opening Celebration August 13, 2005, 12-4 p.m. at 1401 National City Blvd, NC, CA 91950 PREPARED BY Joe Olson, 336-4210 DEPARTMENT Building & Safety EXT. EXPLANATION This is a request from the National City Public Library to conduct the Grand Opening Celebration in the parking lot at 1401 National City Blvd on August 13, 2005. The opening ceremonies will start at 12:00 p.m. and will include Mariachis, dance groups, and bands. Speeches by dignitaries will follow. Ribbon cutting and more entertainment by choirs and karate groups will also be included. Tours of the new library will be ongoing. The organization requests the use of the City's portable stage and sound system. A waiver of fees is requested. The event and sponsoring organization meet the criteria in City Council Policy No. 704 for a waiver of fees. Environmental Review X N/A MIS Approval Financial Statement The City has incurred $345.00 for processing the TUP through various City departments. STAFF RECOMMENDATION Approved By: Finance Director Account No. Approve the Application for a'Temporary Use Permit subject to compliance with all conditions of approval and grant the waiver of fees. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. Application for a Temporary Use Permit with recommended approvals and conditions of approval. A-200 (Rev. 7/03) Type of Event: _ Public Concert Fair _ Parade Demonstration Motion Picture X Grand Opening Event Title: Event Location: Festival _ Circus _ Block Party Other Community Event National City Public Library Grand Opening Celebration 1401 National City Blvd - lrrking lot Event Date(s): From 8/13/05 to 8/13/05 Total Anticipated Attendance: 1700 Month/Day/Year ( 200Participants) (1500 Spectators) Actual Event Hours: Noon Ito 4: oo XXX1pm Setup/assembly/construction Date: Fi/11/05 Start time: Fs- no am Please describe the scope of your setup/assembly work (specific details): Portable stage with sound' systernrprovided by Parks Department. Chairs and shade canopy will be set up by rental company. Custodial support needed. Dismantle Date: 8/1-1/05 Completion Time: 5- 00 N/pm List any street(s) requiring closure as a result of this event. Include street name(s), day and time of closing and day and time of reopening. None Sponsoring Organization. National City Public Library Chief Officer of Organization (Name) Anne Campbell Applicant (Name): Monica 0' Hara Address: 200 E. 12th St. National City, CA 91950 For Profit Not -for -Profit Daytime Phone: (619) 336-4297 Evening Phone: (_J Fax: (61 336-4368 Contact Person "on site" day of the event: Mnni ra O'Hara Pager/Cellular: 507-0572 NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS 1 Y Is your organization a "Tax Exempt, nonprofit organization? Are admission, entry, vendor or participant fees required? If YES, please explain the purpose and provide amount(s): X YES NO YES X NO Estimated Gross Receipts including" ticket, product and sponsorship sales from this event. -Estimated Expenses for this event. What is the projected amount of revenue that the Nonprofit Organization will receive as a result of this event? Please provide a DETAILED DESCRIPTION of your event. Include details regarding any components of your event such as the use of vehicles, animals, rides or any other pertinent information about the event. Opening ceremonies start at noon: Mariachis, dance groups, bands. Speeches by dignitaries follow. Ribbon cutting and more entertainment by choirs and karate groups. Tours of new library will be ongoing. YES NO If the event involves the sale of cars, will the cars come exclusively from National City car dealers? If NO, list any additional dealers involved in the sale: 2 YES X NO Does the event involve the sale or use of alcoholic beverages? YES X NO Will items or services be sold at the event? If yes, please describe: — YES X NO Does the event involve a moving route of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. YES X NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. In addition to the route map required above, please attach a diagram showing the overall layout and set-up locations for the following items: ➢ Alcoholic and Nonalcoholic Concession and/or Beer Garden areas. > Food Concession and/or Food Preparation areas Please describe how food will be served at the event: If you intend to cook food in the event area please specify the method: GAS ELECTRIC CHARCOAL OTHER (Specify): ➢ Portable and/or Permanent Toilet Facilities Number of portable toilets: (1 for every 250 people is required, unless the applicant can show that there are facilities in the immediate area available to the public during the event) ➢ Tables and Chairs > Fencing, barriers and/or barricades > Generator locations and/or source of electricity > Canopies or tent locations (include tent/canopy dimensions) > Booths, exhibits, displays or enclosures ➢ Scaffolding, bleachers, platforms, stages, grandstands or related structures > Vehicles and/or trailers > Other related event components not covered above > Trash containers and dumpsters (Note: You must properly dispose of waste and -garbage throughout the term of your event and immediately upon conclusion of the -event the area must be returned to a clean condition.) Number of trash cans: Trash containers with lids: Describe your plan for clean-up and removal of waste and garbage during and after the event: City will provide trash receptacles and dispose of garbage. 3 Please describe your procedures for both Crowd Control and Internal Security: Sufficient library staff will be assigned. YES X NO Have you hired any Professional Security organization to handle security arrangements for this event? If YES, please list Security Organization: Security Organization Address: Security Director (Name): Phone: YES X No Is this a night event? If YES, please state how the event and surrounding area will be illuminated to ensure safety of the participants and spectators: Please indicate what arrangement you have made for providing First Aid Staffing and Equipment. A cell phone will be available to call the fire department. Please describe your Accessibility Plan for access at your event by individuals with disabilities: The library complies with ADA regulations. Please provide a detailed description of your PARKING plan: On street parking, parking in lot adjacent to baseball field and surrounding areas. Please describe your plan for DISABLED PARKING: Marked curbside parking and designated spaces in back lot, adjacent to baseball field. n Please describe your plans to notify all residents, businesses and churches impacted by the event: A notification letter will be mailed at least 72 hours prior to the event. NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. X YES NO X YES NO X YES NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: 1 Type of Music: ethnic Will sound amplification be used? If YES, please indicate: Start time: noon Finish Time: 4 p.m. Will sound checks be conducted prior to the event? If YES, please indicate: Start time: 8 a.m. Number of Bands: 4 I-inlsn I ime: 1u a.m. Please describe the sound equipment that will be used for your event: Parks and Rec Dept. sound system YES X NO Fireworks, rockets, or other pyrotechnics? If YES, please describe: YES x NO Any signs, banners, decorations, special lighting? If YES, please describe: Revised 10/3/01 5 For Office 'Use On{y Event: Department Approved? Yes Specific Conditions of Approval Council Meetina Date: Approved: Yes No Vote: Kathleen Trees, Director Building & Safety Department Date: No Initial City of National City PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATIQN AGREEMENT Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City 1 its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit. Organization Person in Charge of Activity Addres s Telephone Date(s) of Use HOLD HARMLESS AGREEMENT As a condition of the issuance of a temporary use permit to conduct its activities on public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and its officers, employees and agents from and against any and all claims, demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attomeys fees and the costs of litigation, arising out of or related to the use of public property or the activity taken under the permit by the permittee or its agents, employees or contractors. Signature of Applicant Official Title Date For Oft e . Use (and Certificate of Insurance Approved Date Non-profit organizations, which meet the criteria on page v of the instructions, will be considered for a waiver. If you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsored by a non-profit organization? Yes (proceed to Question 2) X No (Please sign the form and submit it with the TUP Application) 2. Please state the name and type of organization sponsoring the event for which the TUP is sought and then proceed to Question 3. Name of the sponsoring organization Type of Organization .- (Service Club, Church, Social Service Agency, etc.) 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) No (Please sign the form and submit it with the TUP Application) 4. Will the proceeds provide a direct financial benefit to an individual who resides in or is employed in the city, and who is in dire financial need due to health reasons or a death in the family? Yes (Please provide an explanation and details. No (Please proceed to Question 5) 8 5. Will the proceeds provide a direct financial benefit to city govemment such as the generation of sales tax? Yes (Please provide an explanation and details. No (Please proceed to Question 6) 6. Will the proceeds provide a direct financial benefit to a service club— social services agency, or other secular non-profit organization located within the city such as Kiwanis, Rotary , Lions, Boys and Girls Club? Yes (Please provide an explanation and details. No (Please proceed to Question 7) 7.Will the proceeds provide a direct financial benefit to an organization, which has been the direct recipient of Community Development Block Grant (CDBG} funding? Yes Year funds were received: Funds were used to: No (P lease sign the form and submit it with the TUP Application) Signature J 9 7- V N cp2, O,par\\ir N Oo E-43/0.3- CITY OF NATIONAL CITY BUILDING AND SAFETY DEPARTMENT APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: National City Public Library EVENT: Grand Opening Celebration DATE OF EVENT: August 13, 2005 TIME OF EVENT: 12-4 p.m. APPROVALS: PLANNING YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x PUBLIC WORKS YES [ x ] NO [ ] SEE CONDITIONS [ ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ x COMMUNITY SERVICE YES [ x ] NO [ ] SEE CONDITIONS [ ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ x ] PARKS YES [ x ] NO [ ] SEE CONDITIONS [ ] ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ ] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ x RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ ] CONDITIONS OF APPROVAL: FIRE (619) 336-4550 1. Access to be maintained at all times to all Fire Department connections and appliances (fire hydrants, sprinkler system connections, etc). 2. Tents having an area in excess of 200 square feet and/or canopies in excess of 400 square feet or multiple tents and canopies placed together equaling or greater than the above stated areas, are to be used, they are to he flame-retardant treated and a permit from the Fire Department must be obtained. Permit fees are S349.00. Fees can only be waived by the City Council. CITY ATTORNEY Requires an indemnification and hold harmless agreement, and a policy of general liability insurance, with the City and its officials, employees, agents and volunteers as additional insureds, with amounts of coverage to be determined by the Risk Manager. FINANCE 336-4330 1. A Business License is required IF monies are solicited, admittance charged or food, beverages or merchandise is sold. The organization holding this event and each vendor present at this event must have a separate business license. Vendors currently licensed by the City may operate on their existing license. 2. A list of all participating vendors (with their address, phone number and current National City business license number) is to be provided to the Revenue and Recovery Division of the Finance Department prior to the event for verification of business license numbers. 3. If any of the vendors or organizations is registered not -for -profit, there will be no charge for the Business License. However, a Business License certificate must be obtained for the City Revenue & Recovery Division, Business License Section. (Note: A clearance fee does apply to Not -profit organizations located in National City that submit an initial business license application) PUBLIC WORKS/PARKS (619) 336-4580 1. Street Division: No involvement, but ready to assist as necessary. 2. Facilities Division: Custodial assistant, 5 hours at $125.00; electrician help, 3 hours at $100.00. 3. Parks: Stage and P.A. set up and ready to help 4. Total cost: $225.00. POLICE Applicant states 1,700 persons in attendance, yet parking plan is vague, as is crowd control and security. Police Department will coordinate with Public Works/Streets and library to establish defined parking procedures and crowd and vehicle control. (THE SAN DIEGO COUNTY ENVIRONMENTAL HEALTH DEPARTMENT, NATIONAL CITY AND SAN DIEGO TRANSIT HAVE BEEN NOTIFIED VIA FAX) MEETING DATE City of National City, California COUNCIL AGENDA STATEMENT July 19, 2005 AGENDA ITEM NO. 14 ITEM TITLE TEMPORARY USE PERMIT — Christiansen Amusements Plaza Bonita Carnival August 18, 2005 to August 21, 2005 at 3030 Plaza Bonita Rd, NC. CA 91950 Hours: Th/Fri, 5 p.m. to 11 p.m.; Sat/Sun. 1 p.rn. to I I p.m. PREPARED BY Joe Olson, 336-4210 DEPARTMENT Building & Safety EXT. EXPLANATION This is a request from Christiansen Amusements to conduct a carnival in the Plaza Bonita mall parking lot #1. The event will include carnival rides, food booths, games of skill and a candy wagon. Please see attachment. The event dates are as follows: Setup dates: August 15, 2004 8:00 a.m. Event: August 28 to August 21, 2004 Hours: Thurs.& Fri. 5 p.m. — 11 p.m. Sat. & Sun. 1 p.m. — 11 p.m. Teardown: August 22, 2004 8:00 a.m. Alcohol will not be sold and carnival security will provide crowd control. CEnvironmental Review X N/A MIS Approval Financial Statement The City has incurred $345.00 for processing the TUP through various City departments. STAFF RECOMMENDATION Approved By: Finance Director Account No. Approve the Application for Temporary Use Permit subject to compliance with all conditions of approval and grant the waiver of fees. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) Resolution No. Application for a Temporary Usc Permit with recommended approvals and conditions of approval. A-200 (Rev. 7/03) CITY OF NATIONAL CITY BUILDING AND SAFETY DEPARTMENT APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: Christiansen Amusements EVENT: Plaza Bonita Carnival DATE OF EVENT: August 18-21, 2005 TIME OF EVENT: Thurs.& Fri. 5 p.m. — 11 p.m. Sat. & Sun. 1 p.m. — 11 p.m. APPROVALS: PLANNING YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x ] PUBLIC WORKS/PARKS YES [ x ] NO [ ] SEE CONDITIONS [ ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ x ] COMMUNITY SERVICE YES [ x ] NO [ ] SEE CONDITIONS [ ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ x ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ ] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ x RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ x BUILDING & SAFETY YES [ x ] NO [ ] SEE CONDITIONS [ x ] CONDITIONS OF APPROVAL: BUILDING & SAFETY 336-4210 Contact the Building and Safety Department for an electrical inspection prior to opening the carnival. POLICE 336-4400 Combination of event contract security and Plaza Bonita Mall Security will suffice. No request or requirement for direct P.D. involvement. Beat officers to be made aware of event and will make periodic appearances as time allows. FIRE (619) 336-4550 1. A permit is required to erect a tent having an area in excess of two hundred square feet or a canopy in excess of four hundred square feet, or a combination thereof. Tents and canopies shall be treated with a certified flame retardant and labeled as such. The fee for tent and/or canopy is three hundred forty nine dollars ($349.00) and is issued by the fire department. 2. Emergency access throughout the carnival/booth area is to be maintained at all times. 3. Fire Department Permit is required to operate a carnival. Permit fee is three hundred forty nine dollars ($349.00). 4. All cooking/food booths to have one 40:BC or K-type fire extinguisher where grease/oil is used in preparation or a byproduct of preparing food. Fire extinguisher to have current State Fire Marshall tag attached. 5. 2-A:10-B:C fire extinguishers required throughout the carnival site with travel distance not to exceed 75 feet. Fire extinguishers to have a current State Fire Marshall Tag attached. 6. A fire safety inspection is to be conducted by the Fire Department prior to operations of the carnival. 7. Access to Plaza Bonita Shopping Center to be maintained at all times, to all entrances and Fire Department connections for fire sprinkler systems, standpipes, etc. 8. Fire hydrants shall not be blocked or obstructed. RISK MANAGER 1. Minimum limits of one million dollars per occurrence of general liability insurance. (Done) 2. That the City Of National City and it's officials, employees, agents and volunteers be named as additional insured on all policies. (Done) 3. Execure standard hold harmless with the Parking Authority as well as The City of National City. (Done) CITY ATTORNEY 1. Requires an indemnification and hold harmless agreement, and a policy of general liability insurance, with the City and its officials, employees, agents and volunteers as additional insureds, with amounts of coverage to be determined by the Risk Manager. FINANCE 336-4330 1. A $2,500.00 Bond and a $50 Inspection Fee are required for a Carnival or Circus, which has to be paid at least two weeks prior to the start date of the event. 2. A Business License is required IF monies are solicited, admittance charged or food, beverages or merchandise is sold. The organization holding this event and each vendor present at this event must have a separate business license. Vendors currently licensed by the City may operate on their existing license. 3. A list of all participating vendors (with their address, phone number and current National City business license number) is to be provided to the Revenue and Recovery Division of the Finance Department two weeks prior to the event for verification of business license numbers. 4. If any of the vendors or organizations is registered not -for -profit, there will be no charge for the Business License. However, a Business License certificate must be obtained for the City Revenue & Recovery Division, Business License Section. (Note: A clearance fee does apply to non-profit organizations located in National City that submit an initial business license application.) (THE SAN DIEGO COUNTY ENVIRONMENTAL HEALTH DEPARTMENT, NATIONAL CITY AND SAN DIEGO TRANSIT HAVE BEEN NOTIFIED VIA FAX) Type of Event. _ Public Concert Parade Motion Picture 0 Fair Demonstration — Grand Opening 1 3 , a' Festival _ Community Even: _ Circus Block. Party Z Other wal Event Title: P/ z2a apyl i ]' , (fa Event Location 3030 pia, 26 ,uc Al i- �'C-L.. p . , l ► s o �✓'', Event Date(s): From ►8 to "`LJ"2(lr %3 otal Anticipated Attendance 3e •moo at PAN 6„�orthIDay/Year1` p 5 Pa cipanls; vN/F ( Spectators ctual Event Hours ay�r/pm to /pm Setup/assembly/construction Date: •T3 b� .3Start time: A-1iY Please describe the scope of your setup/assembly work (specific details) Sit 5& ( p - U CCi,s6r)'lt-� rides: a e."5: D 40C x p/aap d 1 e4 -Tm5--- 2 r %Gr - ht' ` //t5 ec o h P cf Dismantle Date: / O/t 5/D.-Completion Time: g.'C9C arndO List any street(s) requiring closure as a result of this event. jInnclude street name(s), day and time of closing and day and time of reopening. M^M M1r-.t I Y'u 1�V.Y '4L 4Lli 4. r r r.. t T 11 r}�� a ti• 't4 1rf� 4 { r It j ,. '''''' 1 I41 Sx .' -AAM H.xx x.4..i4.�3• ..� 4.. .a Sponsoring Organization. G 17re'5.7 #5a',( 61S d Profit Chief Officer of Organization (Name) ,Pot/,a/4 ��ir'3./%CGk,lgit Applicant (Name): A1/ -2(t' / Address Not -for -Prof:: Scvc q9;: fSf©ILd1L%/ (�I 9203.3`D9 7 Daytime Phone: "IPe -23Y` 'J 4 2E-vening Phone 74..) ? 41/-757S Z x X) 7 .3,S. 5.1 -3 Contact Person "on site" day of the event: ,B 1,Z/4) Pager/Cellular: tpf /' �2O l - ' S 2-- NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS ftihe Is your organization a "Tax Exempt, nonprofit" organization? YES Y NO Are admission, entry, vendor or participant fees required? }C YES NO If YES, please explain the purpose and provide amount(s): B11f7azace e if% r- Q)t, ' [i@ e sj -7 G2- -Ci fps lhv I - Estimated Gross Receipts including ticket, product and sponsorship sales from this event. Estimated Expenses for this event. What is the projected amount of revenue that the Nonprofit Organization will receive as a result of this event? Please provide a DETAILED DESCRIPTION of your event. Include details regarding any components of your event such as the use of vehicles, animals, rides or any other pertinent information about the event. Please se �x`f-` �l d 6 2 _ YES (_ NO Does the event involve the sale or use of alcoholic beverages? X YES _ NO Will items or services be sold at the event? If yes, please describe: / ea- vtd a it d v4.0ve( he - YES NO Does the event involve a moving route of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. YES NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. In addition to the route map required above, please attach a diagram showing the overall layout and set-up locations for the following items: > Alcoholic and Nonalcoholic Concession and/or Beer Garden areas. Food Concession and/or Food Preparation areas Please describe how food will be served at the event: /%J0E't�/'t� a floe )criltetvk'Lred /n (Wry °d- If you intend to cook food in the event area please specify the method: r� GAS ✓ELECTRIC CHARCOAL OTHER (Specify): )OI zrit �. > Portable and/or Permanent Toilet acilities Number of portable toilets: (1 for every 250 people is required, unless the applicant can show that there are facilities in the immediate area available to the public during the event) > Tables and Chairs > Fencing, barriers and/or barricades > Generator locations and/or source of electricity Canopies or tent locations (include tent/canopy dimensions) > Booths, exhibits, displays or enclosures > Scaffolding, bleachers, platforms, stages, grandstands or related structures > Vehicles and/or trailers > Other related event components not covered above > Trash containers and dumpsters (Note: You must properly dispose of waste and garbage throughout the term of your event and immediately upon conclusion of the event the area must be returned to a clean condition.) Number of trash cans: Trash containers with lids: I6.-• iy Describe your plan for clean-up and removal of waste and garbage during and after the event: Q �' leh!d' e4-c- /il; ' ea �r 41 rLL r 9 ,5/ /A' Q -4? !1 74 ices-~ �r- c�% i 7. 3 Please describe your procedures for both Crowd Control and Internal Security: e; ")JY �' 4± 5 1—,,_et cis r-- i/i de Aka_ vie ` c.40 ,/Ci Ct pa I� e E Cct.. l'riA 1.)6t( a z rc( AYES _ NO Have you hired any Professional Security organization to handle security arrangements for this event? If YES, please list: Security Organization: ei.7- Y C (% C _lS n Security Organization �Address: '1�{0 �•y/J/ex )r A Security Director (Name): / i}-4 ®1) Phone: {?—S W d /` ?3 /'7 2c AYES _ NO Is this a night event? If YES, please state how the event and surrounding area will be illuminated to ensure^, safety of the participants andspectators: e�JC !� A LJ�� X ¢ki /Lt e Q� l i L1,1.�e� - ! � ora-ity ZTy471;43 A 'eddcd Please indicate what arrangement you have made for providing First Aid Sta i and Equipment. , X1 4 7" rrt ! Yg/ J 1! /fie Please describe your Accessibility Plan for access at your event by individuals with disabilities: AA; pd rk, t q 4 / is a_rec i , c. at/ it, d ( � dG''� Gam,7/ / or e' •cit Please provide a detailed description of your PARKING plan: r use 7), / ,1l - 4 Please describe your p,lan for DISH LED PARKING: // l 61 fJ eza l ' t.2S G/ as- 4-w . cLdi(kAer/ sfreee 're c/ yes,d/ is mrJ%d Please describe your plans to notify all residents, businesses and churches impacted11- by the event. / �/ � 42c ` e "?O i 4- v- ' )-‘' v 71-5' e2 NOTE. Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. YES NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: Number of Bands: Type of Music: YES NO Will sound amplification be used? If YES, please indicate: Start time: am/pm Finish Time am/pm YES O Will sound checks be conducted prior to the event? If YES, please indicate. Start time. am/'pm Finish Time am/pm Please describe the sound equipment that will be used for your event YES X, NO Fireworks. rockets, or other pyrotechnics? If YES, please describe: (tt '' YES NO Any signs, banners, decorations, special lighting? If YES. please describe. g21 lace csjyits q 5 lit 2> ��1 For Office Use OnCy Department Date Yes No Condition(s) of Approval Specific Conditions of Approval Initial 6 City of National City PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION AGREEMENT Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit. Organization C� G J`/ /Q,Ui.ie Person in Charge of Activity /ea /ip 4 r [' �j� /j LG 3(36 r6e7rt r-C6 L-�H � c'z� Q11 Ol,t cay 92-z f Address /a e, ..e5eCc01 e) Crg 92_© c<4' t rjlf-/4 Telephone 7& 7- 735-' 'S-4 Z Date(s) of Use HOLD HARMLESS AGREEMENT The undersigned hereby agree(s) to hold the City of National City and the Parking Authority of the City of National City harmless and indemnify the City of National City and the Parking Authority of the City of National City from and against all claims, demands, costs, losses, damages, injuries, litigation and liability arising out of or related to the use of public property by permutes or permitee's agents, employees or contractors. Signature of App Official Title Date For Office Use Only Certificate of Insurance Approved Date 7 Non-profit organizations, which meet the criteria on page v of the instructions, will be considered for a waiver. If you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsored by a non-profit organization? Yes (proceed to Question 2) No (Please sign the form and submit it with the TUP Application) 2. Please state the name and type of organization sponsoring the event for which the TUP is sought and then proceed to Question 3. Name of the sponsoring organization Type of Organization (Service Club, Church, Social Service Agency, etc.) 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) No (Please sign the form and submit it with the TUP Application) 4. Will the proceeds provide a direct financial benefit to an individual who resides in or is employed in the city, and who is in dire financial need due to health reasons or a death in the family? Yes (Please provide an explanation and details. No (Please proceed to Question 5) 8 5. WIli:the proceeds provide a direct financial benefit to city government such as the generation of sales tax? Yes (Please provide an explanation and details. No (Please proceed to Question 6) 6. Will the proceeds provide a direct financial benefit to a service club, social services agency, or other secular non-profit organization located within the city such as Klwanls,Rotary, •Lions, Boys and Girls Club? Yes (Please provide an explanation and details. No (Please proceed to Question 7) 7. Will the proceeds provide a direct financial benefit to an organization, which has been the direct recipient of Community Development Block. Grant (CDBG) funding? Yes Year funds were received: Funds were used to: Signature No (P lease sign the form and submit it with the TUP Application) Date Plaza Bonita Ours &wixe4d is row CHRISTIANSEN AMUSEMENTS Westfield Shoppingtown Plaza Bonita 3030 Plaza Bonita Road, National City, CA 91950 Thursday/Friday 8/18-19 5 pm to 11 pm Aug. 18-21, 2005 Saturday/Sunday 8/20-21 1 pm to 11 pm Christiansen Amusements has again been commissioned by Westfield Shoppingtown to conduct small family carnivals at its various shopping centers in Southern California in 2005. This year's event is the same as previous events. Plaza Bonita will donate a portion of the proceeds to the Sweetwater Kiwanis. This carnival event is targeted to reach the local community families surrounding Plaza Bonita and provide affordable, safe entertainment for the community and Plaza Bonita customers. Following is a list of rides and games. Not all of the rides and games will be used. The total number selected will depend on the actual layout availability. See the attached plot plan and ride list for details. A) Rides: Adult Rides: Bumper Cars, Gravitron, Zipper, Sky Diver, Tilt -A -Whirl, Hurricane Kiddie Rides: Merry -Go -Round, Cycle & Cars, Go-Gator, Bumble Bees, Slime Time, Lady Bugs Non -mechanical: Fun Factory, Giant Inflatable Bounce B) Games: Balloon Dart, Mini -Basketball, Long Range Basketball, Tubs, Buoy Pitch, Goblet Toss, CF Punk, One Ball, Turtles, Mini -Basketball, Hi -Striker, Water Race, Rope Ladder, Derby Race. Christiansen Amusements has made standard policy for these events the following safety elements acknowledged by the National City Police Department which help make for a safe, enjoyable event for all who attend: 1) A temporary, six-foot cyclone fence surrounds each event with one clearly marked entrance as the only way into the carnival. This prevents random, uncontrolled access to and from the event. 2) Each event features a Security Guard staff that includes 1-2 guards monitoring the admission gate and collecting all admission tickets. Any customers in inappropriate attire or unruly groups are instructed that this is a family event and their actions must be accordingly. Also, 2-4 other guards patrol the grounds of the carnival throughout all open hours to insure safe and proper activity. Christiansen Amusements also has staff and supervisors that serve a security and control function. One final similar element is attendance. Unlike circuses and concerts, the crowds and total attendance are usually limited to a few hundred people at a time and a few thousand people total over the 30-hour weekend event. This means that with the exception of the two or three busy hours Friday and Saturday evenings, crowds and parking and traffic flow are easily monitored and controlled. Christiansen Amusements knows that safety is the single most important element we must provide at our carnivals and we address the issue seriously, professionally and effectively. We will take every precaution necessary at Plaza Bonita to again assure a safe and enjoyable atmosphere for everyone. 70A ESTRN FAIRS OCIATION P.O. Box 997, Escondido, CA 92033-0997 • http://www.amusements.com Marketing (760) 735-8542 • Fax (760) 735-8543 • Corporate (760) 741-7552 • Fax (760) 741-2670 fsS Assoc! MEIyBER Y'- 1Y Out 8aitxesi ei Christiansen Amusements Westfield Shoppingtown Plaza Bonita 3030 Plaza Bonita Road, National City, CA 91950 August 18-21, 2005 Ride List Game List 1. Gravitron C-10969 Balloon Dart 2. Hurricane C-17378 Bean Bag 3. Kamikaze C-17222 Buoy Toss 4. Scooter C-13577 Cat Punk Rack 5. Sky Diver C-178 Derby Race 6. Tilt -A -Whirl C-175 Ducks 7. Zipper C-4787 Glass Pitch 8. Bumble Bees C-183 Hi -Striker 9. Go-Gator C-6636 Long Range Basketball 10. Hampton Cars C-7102 Mini -Basketball 11. Hampton Cycles C-7101 One Ball 12. Lady Bugs C-4016 Rainbow Pitch 13. Merry -Go -Round C-174 Ring Toss 14. Slime Time C-17188 Rope Ladders Non -Mechanical Tubs 17. Fun Factory Water Race 18. Giant Slide Inflatable Computer Portrait Food/Candy Wagon All rides OSHA approved. Bold C#'s are Major Rides. Electrical system meets NEC code Article 525. Rides and games limited to space and availability and subject to change. WESTERN FAIRS ASSOCIATION NSF M �Cj�TryjBERz s C P.O. Box 997, Escondido, CA 92033-0997 • http://www.amusements.com Marketing (760) 735-8542 • Fax (760) 735-8543 • Corporate (760) 741-7552 • Fax (760) 741-2670 -is ASsa°s` ACORD, CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DO/YYYY) April 14, 2005 PRODUCER Allied Specialty Insurance, Inc. 10451 Gulf Blvd. Treasure Island, FL 33706 1-800-237-3355 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW' INSURERS AFFORDING COVERAGE NAIC # INSURED Christiansen Amusements, Inc. P.O. Box 997 Escondido CA 92033 INSURER A: T.H.E. Insurance Company INSURER B: INSURER C: INSURER D: INSURER E: COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. IR POLICY NUMBER POUCY ATE (MM/DD/YYL POLICY DATE (MM/DD/YY1EXPIRATION LIMITS LT JN LTR JNSAQ TYPE OFINSUG4NCE EACH OCCURRENCE $ 1,000,000 GENERAL LIABILITY DAMAGE TO RENTED PREMISES (Ea acurence) $ 50,000 X COMMERCIAL GENERAL LIABILITY b( MED EXP (Any one person) $ A CLAIMS MADE OCCUR M5MT6280 4/1/2005 4/1/2006 PERSONAL & ADV INJURY $ 1,000,000 GENERAL AGGREGATE $ 10,000,000 PRODUCTS - COMP/OP AGG $ 1,000,000 GEN'L AGGREGATE LIMIT APPLIES PRO- POLICY T PER: LOC AUTOMOBILE JE LIABILITY COMBINED SINGLE LIMIT (Ea accident) $ ANY AUTO ALL OWNED AUTOS - BODILY INJURY (Per person) S SCHEDULED AUTOS HIRED AUTOS BODILY INJURY (Per accident) $ N NON -OWNED AUTOS PROPERTY DAMAGE $ (Per accident) AUTO ONLY - EA ACCIDENT $ GARAGE LIABILITY OTHER THAN EA ACC $ A ANY AUTO AUTO ONLY: AGG $ EACH OCCURRENCE $ EXCESS/UMBRELLA LIABILITY I AGGREGATE $ OCCUR I CLAIMS MADE S D DEDUCTIBLE RETENTION $ $ WC STATU- TORY LIMITS OTH- I ER WORKERS COMPENSATION AND EMPLOYERS' LIABILITY E.L. EACH ACCIDENT $ ANY PROPRIETOR/PARTNER/EXECUTIVE E.L. DISEASE - EA EMPLOYEE $ OFFICER/MEMBER EXCLUDED? R yes, describe under below E.L DISEASE - POLICY LIMIT $ S SPECIAL PROVISIONS OTHER DESCRIPTION OF OPERATIONS / LOCATIONS /VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS Additional Insured with respects to operations of the named Insured: City of National City and the parking Authority of National City, its officials, employees, agents and volunteers For the dates of August 14 - 22, 2005. CERTIFICATE HOLDER City of National City 1243 National City Blvd. National City, CA 91950 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO 00 SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE 73C'V ® ACORD CORPORATION 1988 ACORD 25 (2001/08) Map 1 of 2R° R°4p Carnival site 0 0 ESA i E TRA V.A' CO. Q iMER';1' WO ° pp ENTRANCE U dmm a4 ENTRANCE 1 plaza b�b Carnival August 18-21, 2005 Christiansen Amusements P.O. Box 997, Escondido 92033 (760) 735-8542 WARD ENTRANCE r U a 4 N eWE rsu Christiansen Amusements P.O. Box 997 Escondido, Ca. 92033-0997 (760) 735-8542 (760) 735-8543 fax Emergency Exit Thr. 5pm to 10pm Fri. 5pm to 11 pm Sat. 1pm to 11pm Sun. 1pm to 10pm Scooters Office Generator Fun Factory Westfield Shopping Town 3030 Plaza Bonita Rd. National City, Ca. 91950 W Date: Aug. 18-21, 2005 Line Up Games Emergency Exit Map 2 of 2 Tix 6' ft. temp. fence Landscaped curbs Ticket box Emergency Exits posted on Plot Plan. Distance of Features to Perimeter minimum of 20' uei-.ttsi:'00s 14:9:5 FAX 2002 Westfiek[ S M O O P I N Q T O W N PLAZA BONITA 3030 Plaza Bonita Road, Suite 2075 National City, CA 91050-3007 Telephone 16191 267-2E60 Pacsimllc 16191 477.•5652 June 17, 2005 Kathleen Trees Building & Safety Director City of National City Building & Safety Department 1243 National City Boulevard National City, CA 91950-4301 RE: Temporary Use Permit Christiansen Amusements Carnival Dear Kathleen: This letter serves as official authorization for Christiansen Amusements to operate a family carnival on our Westfield Plaza Bonita property located at 3030 Plaza Bonita Road., National City, CA 91950. Christiansen Amusements is approved to occupy the parking lot on our property from 8/15/05 through 8/23/05 for set-up, operation and removal of the carnival. The Carnival will be open for business 8/18/05 through 8/21/05_ Fecl free to call should you have any questions. Thank you. Sincerely, Donna Kudrick Specialty Leasing Manager Plaza Bonita City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE July 19, 2005 15 AGENDA ITEM NO. ITEM TITLE TEMPORARY USE PERMIT - NATIONAL CITY CHAMBER OF COMMERCE -TASTE OF NATIONAL CITY (August 25, 2005 from 5:00 p.m.-8:00 p.m.) PREPARED BY Joe Olson 336-4210 DEPARTMENT Building and Safety EXT. EXPLANATION This is a request from the National City Chamber of Commerce to conduct its annual "Taste of National City" fund-raising event on the 900 block of A Avenue from 5:00 p.m. to 8:00 p.m. on Thursday, August 25, 2005. The event is open to the community for sampling food from various restaurants in the City. A six -piece ensemble band will provide entertainment. The Chamber is requesting that the 900 block of A Avenue be closed for the event. They are also requesting from the City the use of 50 tables, 150 chairs and a generator. A waiver of fees is requested. The event and sponsoring organization meet the criteria in the City Council Policy No. 704 for a waiver of fees. Environmental Review N/A MIS Approval Financial Statement Approved By: Finance Director The City has incurred $345 for processing the T.U.P. through various City departments and $1078.00 in Public Works costs. Account No. STAFF RECOMMENDATION Approve the Application for Temporary Use Permit subject to compliance with all conditions of approval and grant the req est for a waiver of the fees. BOARD / CO IIL SS RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. Application For A Temporary Use Permit with recommended Conditions of Approval. A-200 (Rev. 7/03) CITY OF NATIONAL CITY BUILDING AND SAFETY DEPARTMENT APPLICATION FOR A TEMPORARY USE PERMIT AND RECOMMENDED CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: National City Chamber of Commerce EVENT: Taste of National City DATE OF EVENT: Thursday, August 25, 2005 TIME OF EVENT: 5:00p.m. to 8:00 p.m. APPROVALS: PLANNING YES [ x ] NO [ ] SEE CONDITIONS [ ] COMMUNITY SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ x ] PUBLIC WORKS YES [ x ] NO [ ] SEE CONDITIONS [ x POLICE YES [ x ] NO [ ] SEE CONDITIONS [ x ] ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ x ] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ x ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ x ] CONDITIONS OF APPROVAL CITY ATTORNEY 336-4220 Requires an indemnification and hold harmless agreement and a policy of general liability insurance with the City and its officials, employees, agents and volunteers as additional insureds, with amount of coverage to be determined by the Risk Manager. RISK MANAGER 1. Minimum limits of one million dollars per occurrence of general liability insurance (Done). 2. That the City of National City and its officials, employees, agents and volunteers be named as additional insureds on above policy (Done). 3. Standard hold harmless signed (Done). POLICE 1. Police Department will provide seniors, if available. Cannot specify a number or provide a solid commitment. 2. Nature of event and past history indicates minimum police presence necessary. if seniors are not available, on -duty beat officer(s) will make periodic visits if and when available. FIRE 336-4550 1. Fire access to be maintained at all times. 2. Access to be maintained at all times to all Fire Department connections and appliances, (tire hydrants, sprinkler system connections, etc.). 3. 2A:10BC fire extinguishers required for cooking areas. Fire extinguishers locations to be plainly marked and not to exceed a travel distance of fifty (50) feet. 4. Tents having an area in excess of 200 square feet and or canopies in excess of 400 square feet or multiple tents and canopies placed together equaling or greater than the above stated areas, are to be used, they are to be flame-retardant treated and a permit form the Fire Department must be obtained. Permit fees are $349.00. Fees can only be waived by the City Council. PUBLIC WORKS 336-4580 1. Street Division will post "No Parking" signs; install banners over National City Blvd; provide barricades to close street and sweep street prior to the event. 2. Facilities to provide Electrician for generator set up and disconnect and run extension power (4-5 hours) 3. 1 Custodian to assist in delivery, set up and set down of tables and chairs. (4-5 hours). 4. Total Facilities cost is $400.00; Street division cost is $678.00; total cost for public works: $1078.00. FINANCE 1. A Business License is required if monies are solicited, admission fee is charged or food, beverages or merchandise is sold. Each vendor must present on this event must have a separate Business License. Vendors currently licensed by the City may operate on their existing license. 2. A list of all participating vendors (with their address, phone number and current National City business license number) is to be provided to the Revenue and Recovery Division of the Finance Department at least 2 weeks prior to the event for verification of business license numbers. 3. If any of the vendors or organizations is registered not for profit, there will be no charge for the business license. However, a business license certificate must be obtained from the City Revenue and Recovery Division, business license section. ENGINEERING No Parking signs for set-up areas (which may be required) shall be posted a minimum of seventy-two (72) hours prior to the set-up time for enforcement purposes. Type of Event: Public Concert Parade _ Motion Picture Fair _ Demonstration Grand Opening Event Title: Tcl $ i ( U-f- Event Location: -1-e r t 1 a S( � 611 00 q/ Dctk o+ A lij Into t Event Date(s): From" aS D f to -. f Total Anticipated Attendance: 'U O Month/Day/Year (OParticipants) Actual Event Hours: ` am/m to am/�m (j,(' OSpectators) Setup/assembly/construction Date:A.145 Start time:/0 A !'1 Please describe the scope of your setup/assembly work (specific details): Car\oq � +rktf 11 - R11/ (.1r Jt GO( df S (i ) (n(f J15., Dismantle Date: Completion Time: am/pm List any street(s) requiring closure as a result of this event. Include street name(s), day and time of closing and da and time of reopening. °I bloCF (1 A A ixr r* erv, Sponsoring Organization: N-1' C1A)( ('& r �� ror'r'N(/`G1 For Profit y^ K tJ < Chief Officer of Organization (Name) l /� or �\ r u Not -for -Profit j Applicant (Name): , �14 10-, ,) 1A C �.�}r-- U b I- Co r, r 1/„ Address: 9 0) 1\) qt lug,, l (1�`/ `i 1 t) N Daytime Phone: 61c\ ) Yir - °I) Eveniing Phone: 4,) l`\) !/`)'j -9331 Fax: 4 ) ! -go Contact Person "on site" day of the event: Cr',. +(r int CiN61if Pager/Cellular: )p1 _ Ur NOTE: THIS PERSON MUST BE IFATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS 44,4 _ Festival Comjty Ever `�• a — I Circus Block Pa d, <20 Other -4 ,�, �S 044/4. 1 Is your organization a "Tax Exempt, nonprofit" organization? YES NO Are admission, entry, vendor or participant fees required? YES _ NO VkYES, please explain the purpose and provide amount(s): rn i a )/U ,� )sr q �j 11 t L Si„Io�J, $ C) D 9 v Estimated Gross Receipts including ticket, product and sponsorship sales from this event. $ )\ C3 b Estimated Expenses for this event. $ -3 1 S 0 t What is the projected amount of revenue that the Nonprofit Organization will receive as a result of this event? Please provide a DETAILED DESCRIPTION of your event. Include details regarding any components of your event such as the use of vehicles, animals, rides or any other pertinent information about the event. Vk'Ut,r Lk, ot ± )r, _ YES _ NO If the event involves the sale of cars, will the cars come exclusively from National City car dealers'? If NO, list any additional dealers involved in the sale: 2 Please describe your procedures for both Crowd (Control and Internal Security: "1 i 0v11), f1�, 10/ VO(Ufi"`o^h pohc4 - YES NO Have you hired any Professional Security organization to handle security arrangements for this event? If YES, please list: Security Organization: Security Organization Address: Security Director (Name): Phone: YES _ NO Is this a night event? If YES, please state how the event and surrounding area will be illuminated to ensure safety of the participants and spectators: Please indicate what arrangement you have made fos providing First Aid Staffing and Equipment. Pal -NA 1 V\,/ ,) I f a`, 1)e," 1 Please describe your Accessibility Plan for access at your event by individuals with disabilities: 61ta7--1^l ,r .c-+ lc L.(-\. Please provide a detailed description of your PARKING plan: Please describe your plan for DISABLED PARKING: 1 (� N 4 Event: For Office Use Only Department Date Approved? Yes No Initial Specific Conditions of Approval Council Meeting Date: Approved: Yes No Vote: Kathleen Trees, Director Building & Safety Department 6 UEST FOR A:: WAIVER OF SEES Non-profit organizations, which meet the criteria on page v of the instructions, will be considered for a waiver. If you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsored by a non-profit organization? Yes (proceed to Question 2) No (Please sign the form and submit it with the TUP Application) 2. Please state the name and type of organization sponsoring the event for which the TUP is sought and then proceed to Question 3. Name of the sponsoring organization /1) ti �'r y f 4i ^ h U v f ('a r-,r Ir C1 Type of Organization Co r^,, LA 1 6r5G^ I L., l (c (Service Club, Church, Social Service Agency, et .) 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) No (Please sign the form and submit it with the TUP Application) 4. Will the proceeds provide a direct financial benefit to an individual who resides in or is employed in the city, and who is in dire financial need due to health reasons or a death in the family? Yes (Please provide an explanation and details. No (Please proceed to Question 5) ACORD CERTIFICATE OF LIABILITY' INSIJRAN P1 'SD DATE,..... PRODUCER Wateridge Insurance Services 10525 Vista Sorrento Pkwy #300 THIS CERTIFICATE IS ISSUED AS A. MATTER OF INFORMATION ONLY AND CONFERS NO RIG' -ITS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. San Diego CA 92121 e COMPANIES AFFORD NG COVERAGE R.B. Guy Insurance Agency,Inc. Phone No. 858-452-2200 Fax No, 858-452-6004 COMPANY A Maryland Casualty Company INSURED COMPANY B National City Chamber of Commerce COMPANY C 901 National City Boulevard National City CA 91950 COMPANY D COVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO LTR TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MWDONY) POLICY EXPIRATION DATE (MM/DOM') LIMITS GENERAL LIABILITY GENERAL AGGREGATE $ 4,000,000 A X COMMERCIAL GENERAL LIABILITY PAS38912516-02 09/22/04 09/22/05 PRODUCTS - COMP/OPAGG $ 4,000,000 CLAIMS MADE X OCCUR PERSONAL & ADV INJURY $ 2,000,000 OWNER'S & CONTRACTOR'S PROT EACH OCCURRENCE $ 2,000,000 FIRE DAMAGE (Any one fire) $ 2, 0 0 0, 0 0 0 MED EXP (Any one person) $ 10 , 00 0 A AUTOMOBILE LIABILITY ANY AUTO PAS38912516 09/22/04 09/22/05 COMBINED SINGLE LIMIT $ 1 , 00 0 ,000 ALL OWNED AUTOS SCHEDULED AUTOS BODILY INJURY (Per person) $ _ X X HIRED AUTOS NON -OWNED AUTOS BODILY INJURY (Per accident) $ PROPERTY DAMAGE $ GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ ANY AUTO OTHER THAN AUTO ONLY. EACH ACCIDENT $ AGGREGATE $ EXCESS LIABILITY EACH OCCURRENCE $ UMBRELLA FORM AGGREGATE $ OTHER THAN UMBRELLA FORM $ WORKERS COMPENSATION AND WC STATU- TORY LIMITS OTH ER EMPLOYERS LIABILITY EL EACH ACCIDENT $ THE PROPRIETOR/ INCL EL DISEASE - POLICY LIMIT $ PARTNERS/EXECUTIVE OFFICERS ARE: EXCL EL DISEASE - EA EMPLOYEE $ OTHER DESCRIPTION OF OPERATIONS/LOCATIONSNEHICLES/SPECIAL ITEMS *Except IOyynSDoTnSmmeeTtOfpp NMEADDITNALINUREWIHREPECTGENERAL LIABILITYTIFICATE HOLDER IS CERTIFICATE HOLDER CITY119 CANCELLATION . SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 30 * DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, CITY OF NATIONAL CITY BUT FAILURE TO MA I CH NOTICE SHALL IMPOSE NO GATION OR LIABILITY OF ANY KIND ECOM N ITS AG ORR ENTATIVES. 1240 NATIONAL CITY BLVD NATIONAL CITY CA 91950-4397 ACORD 25=5 (1/95) AUTHORIZED P SENTATIV R.B. Insuranc gency,Inc. ' ACO CORPORATION 1988 City of National City, California COUNCIL AGENDA STATEMENT 16 MEETING DATE July 19, 2005 AGENDA ITEM NO. ITEM TITLE TEMPORARY USE PERMIT — 20`i' Annual Chili & Salsa Cook Off Saturday, October 22, 2005, 10 a.m. to 3 p.m. at 1401 National City Blvd. PREPARED BY Joe Olson, 336-4210 DEPARTMENT Building & Safety EXT. EXPLANATION This is a request from the National City Public Library to conduct the 201h Annual Chili & Salsa Cook Off event at 1401 National City Blvd in both the library and the library parking lot from 10 a.m. to 3 p.m. on Saturday, October 22, 2005. The event will include a Reading is Fundamental book give away, musical entertainment, school fundraising, food booths, crafts, and activities booths. Food will be sold from tables under canopies. Sound amplification will be used for the musical entertainment with sound checks beginning at 8 a.m. The organization requests the use of the City's portable stage and sound system. A waiver of fees is requested. The event and sponsoring organization meet the criteria in City Council Policy No. 704 for a waiver of fees. Environmental Review X N/A MIS Approval Financial Statement Approved By: The City has incurred $345.00 for processing the TUP through various City Finance Director departments plus $1,370.73 for Public Works (street: $44.73; facilities: $366.00; park: $560.00) Account No. STAFF RECOMMENDATION aidtie_e_44&Le_a_a_J Approve the Application fqk a Temporary Use Permit subject to compliance with all conditions of approval and grant the waiver of fees. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. Application for a Temporary Use Permit with recommended approvals and conditions of approval. A-200 (Rev. 7/03) CITY OF NATIONAL CITY BUILDING AND SAFETY DEPARTMENT APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: National City Public Library EVENT: 20th Annual Chili & Salsa Cook Off DATE OF EVENT: Saturday, October 22, 2005 TIME OF EVENT: 10:00 a.m. to 3:00 p.m. APPROVALS: PLANNING YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x ] PUBLIC WORKS YES [ x ] NO [ ] SEE CONDITIONS [ ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ x ] COMMUNITY SERVICE YES [ x ] NO [ ] SEE CONDITIONS [ ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ x ] PARKS YES [ x ] NO [ ] SEE CONDITIONS [ ] ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ ] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ [ CONDITIONS OF APPROVAL: FIRE (619) 336-4550 1. Emergency vehicle access to be maintained at all times. 2. Access to be maintained at all times to all Fire Department connections and appliances (fire hydrants, sprinkler system connections, etc.). 3. Tents having an area in excess of 200 sq. feet and/or canopies in excess of 400 sq. feet or multiple tents and canopies placed together equaling or greater than the above stated areas, are to be used, they shall be flame-retardant treated and a permit from the Fire Department must be obtained. Permit fees are $349.00. Fees can only be waived by City Council. 4. 2-A:10-BC fire extinguishers are required in all cooking areas. Fire extinguisher locations to be plainly identified. Travel distance not to exceed 50ft. 5. If charcoal is to be used a metal can with lid is to be provided for the disposal of hot coals. Metal container to be clearly labeled, "HOT COALS ONLY." POLICE Police Department will provide R.S.V.P. & Reserve personnel as need consistent with past years. FINANCE 336-4330 1. A Business License is required IF monies are solicited, admittance charged or food, beverages or merchandise is sold. The organization holding this event and each vendor present at this event must have a separate business license. Vendors currently licensed by the City may operate on their existing license. 2. A list of all participating vendors (with their address, phone number and current National City business license number) is to be provided to the Revenue and Recovery Division of the Finance Department prior to the event for verification of business license numbers. 3. If any of the vendors or organizations is registered not -for -profit, there will be no charge for the Business License. However, a Business License certificate must be obtained for the City Revenue & Recovery Division, Business License Section. PUBLIC WORKS 1. Street Division — Post "No Parking" signs for event; set barricades on corners for use by event personnel to block driveways. 2. Facilities Division — Provide 1 electrician and 1 custodian. The electrician will perfouui electrical set-ups and monitoring and will help the custodian with event set-ups and general housekeeping. 3. Parks Division — set up stage and P.A. system on Friday; breakdown stage on Saturday. Street cost is $44.73; facilities cost is $366.00; park cost is $560.00. Total Public Works cost is $1,370.73. BUILDING AND SAFETY 1. Written notification must be given to the occupants of the property adjacent to the park. The notification must be mailed no less than 72 hours prior to the event. (THE SAN DIEGO COUNTY ENVIRONMENTAL HEALTH DEPARTMENT, NA I'IONAL CITY AND SAN DIEGO TRANSIT HAVE BEEN NOTIFIED VIA FAX) Type of Event: Public Concert Parade Motion Picture Fair Demonstration Grand Opening Event Title: 20`" Annual Chili and Salsa Cook Off Event Location: 1401 National City Blvd, library and library parking lot Event Date(s): From 10/22/05 To 10/22/05 Actual Event Hours: 10 am to 3 pm Setup/assembly/construction Date: 10/21105 Total Anticipated Attendance: 4000 ( Participants I: 400 ( Spectators): 3600 Start time: noon Please describe the scope of your setup/assembly work (specific details): Tables, chairs, canopies, portable stage with sound system Dismantle Date: 10/22/05 Completion Time: 5 pm List any street(s) requiring closure as a result of this event. Include street name(s), day and time of closing and day and time of reopening. Sponsoring Organization: National City Public Library Chief Officer of Organization (Name) — Anne Campbell Applicant (Name): Becky Marlbrough Address: 200 E 12th St., National City, CA 91950 Daytime Phone: (619) 336-4463 Evening Phone: For Profit Not -for -Profit Fax: (619) 336-4368 Contact Person "on site" day of the event: Becky Marlbrough Email:literacy@sdcoe.k12.ca.us Pager/Cellular 507-0572 NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATEL Y AVAILABLE TO CITY OFFICIALS Is your organization a "Tax Exempt, nonprofit" organization? Are admission, entry, vendor or participant fees required? If YES, please explain the purpose and provide amount(s): To assist in meeting overhead of the event. Total $250.00 X YES NO X YES NO $ 350.00 $ 1000.00 $0 Estimated Gross Receipts including" ticket, product and sponsorship sales from this event. -Estimated Expenses for this event. What is the projected amount of revenue that the Nonprofit Organization will receive as a result of this event? Please provide a DETAILED DESCRIPTION of your event. Include details regarding any components of your event such as the use of vehicles, animals, rides or any other pertinent information about the event. Reading is Fundamental (RIF) book give away, musical entertainment, school fundraising, food booths, children crafts and activities booths. YES NO If the event involves the sale of cars, will the cars come exclusively from National City car dealers? If NO, list any additional dealers involved in the sale: 2 YES X NO Does the event involve the sale or use of alcoholic beverages? X Yes X NO X YES NO NO Will items or services be sold at the event? If yes, please describe: Food items by other non profits Does the event involve a moving route of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route, indicate the direction of travel, and provide a written narrative to explain your route. Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. X YES NO Does the event involve the use of tents or canopies? If YES: Number of tent/canopies 20 Sizes 10 x 10 NOTE: A separate Fire Department permit is required for tents or canopies. X YES NO Will the event involve the use of the City stage or PA system? In addition to the route map required above, please attach a diagram showing the overall layout and set-up locations for the following items: Alcoholic and Nonalcoholic Concession andlor Beer Garden areas. Food Concession and/or Food Preparation areas Please describe how food will be served at the event: From tables under canopies • If you intend to cook food in the event area please specify the method: GAS ELECTRIC CHARCOAL OTHER (Specify): propane - Portable and/or Permanent Toilet Facilities Number of portable toilets: (1 for every 250 people is required, unless the applicant can show that there are facilities in the immediate area available to the public during the event) - Tables and Chairs - Fencing, barriers and/or barricades - Generator locations and/or source of electricity - Canopies or tent locations (include tent/canopy dimensions) - Booths, exhibits, displays or enclosures - Scaffolding, bleachers, platforms, stages, grandstands or related structures - Vehicles andlor trailers - Other related event components not covered above - Trash containers and dumpsters (Note: You must properly dispose of waste and garbage throughout the term of your event and immediately upon conclusion of the event the area must be retumed to a clean condition.) Number of trash cans: 10 Trash containers with lids: Describe your plan for clean-up and removal of waste and garbage during and after the event: Use of trash cans and dumpsfer 3 Please describe your procedures for both Crowd Control and Internal Security: The senior volunteer patrol will be present at the event. YES X NO Have you hired any Professional Security organization to handle security arrangements for this event? If YES, please list: SecurityOrganizatio n: Security Organization Address: Security Director (Name): Phone: YES X NO Is this a night event? If YES, please state how the event and surrounding area will be illuminated to ensure safety of the participants and spectators: Please indicate what arrangement you have made for providing First Aid Staffing and Equipment. A cell phone will be available to can the fire department Please describe your Accessibility Plan for access at your event by individuals with disabilities: The library complies with ADA regulations. Please provide a detailed description of your PARKING plan: On street parking, parking in lot adjacent to baseball field, and alternate parking with busing. Please describe your plan for DISABLED PARKING: Marked curbside parking and designated spaces in back lot, adjacent to baseball field. A Please describe your plans to notify ail residents, businesses and churches impacted by the event: A notification letter will be mailed at least 72 hours prior to the event. NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. X YES NO X YES NO X YES NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: 1 Type of Music: ethnic Will sound amplification be used? If YES, please indicate: Start time: 10 a.m. Finish Time: 3 p.m. Will sound checks be conducted prior to the event? If YES, please indicate: Start time: 8 a.m. Number of Bands: hmisn time: 10 a.m. Please describe the sound equipment that will be used for your event: Parks and Rec Dept. sound system YES X NO Fireworks, rockets, or other pyrotechnics? If YES, please describe: X YES NO Any signs, banners, de.corations, special lighting? If YES, please describe: Revised 10/3/01 Posters and banners. No special lighting. 5 F'or Office 'Use On€y Event: Department Approved? Yes Specific Conditions of Approval Council Meeting Date: Approved: Yes No Vote: Kathleen Trees, Director Building & Safety Department Date: No Initial City of National City PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION AGREEMENT Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City I its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit. Organization Person in Charge of Activity Address Telephone Date(s) of Use HO LD HARM LESS AG RE E M E NT As a condition of the issuance of a temporary use permit to conduct its activities on public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and its officers, employees and agents from and against any and all claims, demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attomeys fees and the costs of litigation, arising out of or related to the use of public property or the activity taken under the permit by the permittee or its agents, employees or contractors. Signature of Aoolicar$ Official Title Date r Otfice Use C3niy Certificate of Insurance Approved Date Non-profit organizations, which meet the criteria on page v of the instructions, will be considered for a waiver. If you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsored by a non-profit organization? Yes (proceed to Question 2) X No (Please sign the form and submit it with the TUP Application) 2. Please state the name and type of organization sponsoring the event for which the TUP is sought and then proceed to Question 3. Name of the sponsoring organization Type of Organization (Service Club, Church, Social Service Agency, etc.) 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) No (Please sign the form and submit it with the TUP Application) 4. Will the proceeds provide a directfinancial benefit to an individual who resides in or is employed in the city , and who is in dire financial need due to health reasons or a death in the family? Yes (Please provide an explanation and details. No (Please proceed to Question 5) 5. Will the proceeds provide a direct financial benefit to city government such as the generation of sales tax? Yes (Please provide an explanation and details. -No (Please proceed to Question 6) 6. Will the proceeds provide a direct financial benefit to a service club— social services agency, or other secular non-profit organization located within the city such as Kiwanis, Rotary , Lions, Boys and Girls Club? Yes (Please provide an explanation and details. No (Please proceed to Question 7) 7.Will the proceeds provide a direct financial benefit to an organization, which has been the direct recipient of Community Development Block Grant (CDBG} funding? Yes Year funds were received: Funds were used to: No (P lease sign the form and submit it with the TUP Application) Signature� ;C c --� 1�_____ Date 6 9 L. Gge.,AK:/ [RCY6t5YM5y lit�bra-1 c `{ �, �l�Gl.1i / , , N f ,Epr �13?VttJ �`�� , �t4 "Fr>act ?)oesth5 Mobi 4t. DRAET City of National City, California COUNCIL AGENDA STATEMENT ti July 19, 2005 MEETING DATE 17 AGENDA ITEM NO. / ITEM TITLE WARRANT REGISTER #48 PREPARED BY Finance EXPLANATION DEPARTMENT City Manager Lin Wurbs 619-336-4240 Ratification of Warrant Register #48 per Government Section Code 37208. EXT. 1' Environmental Review N/A MIS Approval Financial Statement Not applicable. Approved By: Finance Director Account No. STAFF RECOMMENDATION I recommend ratification of these warrants for a total of $ 995,129.96. BOARD / COMM SSION RECOMMENDATION ATTACHMENTS ( Listed Below ) 1. Warrant Register #48 2. Workers Comp Warrant Register dated 06/01/05 3. Payroll Warrant Register dated 06/01/05 Resolution No. A-200 (Rev. 7/03) City of National City WARRANT REGISTER # 48 6/7/05 Paige Description chk no chk date amount MORE DIRECT HP LASERJET 2430TN PRINTERS. CITY 200126 6/7/05 4,338.00 NCFFA REIMB BIG SCREEN TV PROP TAG#2486 200127 6/7/05 1,500.00 NEXUS INTEGRATION SERVICES TELECOM EQUIPMENT AND SOFTWARE 200128 6/7/05 6,042.51 A PARTY RENTALS NCFD DEDICATION CEREMONY 201494 6/7/05 241.70 ACCOUNTEMPS MARY-JO REBELEZ WEEK ENDING 05/20/ 201495 6/7/05 1,480.00 ACE UNIFORMS & ACCESSORIES,INC DRESS UNIFORMS 201496 6/7/05 4,368.79 ,FFORDABLE PIPELINE SERVICES EMERGENCY CALL - CLEAN SEWER MAI 201497 6/7/05 780.00 AIRGAS-WEST MOP 45714 - HELIUM, BALLOONS 201498 6/7/05 83.84 AMERICAN FORENSIC NURSES SUSPECT BLOOD WITHDRAWALS, URINE 201499 6/7/05 1,046.00 ARENSON OFFICE FURNITURE LA-Z-BOY SINTAS SERIES EXECUTIVE HI 201500 6/7/05 534.78 ARMOR FORENSICS LAB SUPPLIES 201501 6/7/05 129.28 AZTEC PRINTING COMPANY NCFD DEDICATION CEREMONY 201502 6/7/05 269.91 BCM MECHANICAL INC. BI-MONTHLY MAINTENANCE OF DATA f 201503 6/7/05 150.00 BOOT WORLD MOP 65096 - SAFETY BOOTS - HUERTA 201504 6/7/05 125.00 CALIFORNIA COMMERCIAL SECURITY MOP 45754 - MINIPROX READER 201505 6/7/05 802.51 CALIFORNIA ELECTRIC SUPPLY MOP 45698 - FIXTURE/DETECTOR 201506 6/7/05 179.12 CANTERO REIMB/TRAINING-LUNCH MEETING/CAN 201507 6/7/05 106.35 CEB FORMING COMMON INTEREST DEVELOI 201508 6/7/05 129.81 -HADWICK CENTER FOR CHILDREN VIDEO COPY - NCPD CASE #0412086 201509 6/7/05 36.00 CINGULAR WIRELESS WIRELESS SRVCS ACCT# 0045535344 201510 6/7/05 2,529.59 CINGULAR WIRELESS WIRELESS SRVC ACCT#113782899 201511 6/7/05 156.03 i CINGULAR WIRELESS WIRELESS SRVC ACCT#70006473 201512 6/7/05 79.2 CITY OF SAN DIEGO JPA COSTS, ARJIS UTILIZATION, DIRECT 201513 6/7/05 8,610.85 COLLINS STRATEGIC GROUP, INC. FACILITATOR FOR CPRC 201514 6/7/05 1,875.00 COPY POST PRINTING STORM WATER STAMP 201515 6/7/05 23.27 CORPORATE EXPRESS MOP 45704 SUPPLIES 201516 6/7/05 343.55 CRAWFORD 125 PLAN REIMBURSEMENT 201517 6/7/05 479.54 CURTIS ALLAN FLOORCOVERING CPT-1: PHILADELPHIA CARPETS 201518 6/7/05 1,648.00 D&B SELF -MONITORING 201519 6/7/05 578.00 D3 EQUIPMENT WATER PUMP 201520 6/7/05 206.51 DAPPER TIRE COMPANY TIRES 201521 6/7/05 875.08 DATA TICKET INC IN PERSON HEARINGS FOR MARCH 2005 201522 6/7/05 385.00 DAY WIRELESS SYSTEMS REPLACEMENT PARTS FOR THE 800 MH2 201523 6/7/05 159.62 DEAN'S WEST COAST RADIATOR RECORD RADIATOR 201524 6/7/05 318.00 DEPARTMENT OF JUSTICE FINGERPRINTING CHARGES FOR NEW CI 201525 6/7/05 192.0(, DIARIO LATINO ART CENTER WORKSHOP 201526 6/7/05 402.00 DIXIELINE LUMBER CO. MOP 45707 - SCREWS 201527 6/7/05 344.95 DOWNSTREAM SERVICES EMERGENCY REPAIR SEWER MAIN 201528 6/7/05 3,250.00 DURRA INK LETTERHEAD, BUSINESS CARDS 201529 6/7/05 120.79 EDUCATION CORNER CRAFT SUPPLIES, I.E. SHARPIE ULTRA FI 201530 6/7/05 200.47 EW TRUCK & EQUIPMENT CO. INC. WATER PUMP 201531 6/7/05 205.38 EXPRESSTEL LONG DISTANCE ACCT# 4-30387-1 201532 6/7/05 302.92 FEDEX FEDEX CHARGES 201533 6/7/05 65.17 FIRE ETC REFLECTIVE TAPE 201534 6/7/05 128.91 FREE FORM CLAY & SUPPLY THERMOCOUPLE, SK 201535 6/7/05 75.47 HOLLOWAY, WILLIAM REIMBURSE CPT HOLLOWAY FOR REPAI 201536 6/7/05 66.47 HRADECKY 125 PLAN REIMBURSEMENT 201537 6/7/95 89.88 HYDRO-SCAPE PRODUCTS INC. MOP 45720 - EL TOYON IRRIGATION REP, 201538 6/7/05 87.67 IAFF EMS CONFERENCE JUNIEL,REED,MEDINA,MEJIA,T1EMAN IA 201539 6/7/05 1,875.00 2 ICMA ICMA MEMBERSHIP/LIN WURBS 201540 6/7/05 1,000.00 INTEGRATED INSIGHTS EAP PROGRAM 05/05 201541 6/7/05 1,780.02 JOBS AVAILABLE INC. ADVERTISEMENT SR ASST CTY ATTNY 201542 6/7/05 276.25 KINKO'S NATIONAL PRINTING & BINDING OF YR END FINANI 201543 6/7/05 199.12 LEMUS ROSARITO DIGNITARIES VISIT 5/27/05 201544 6/7/05 70.20 LIBERTY ART WORKS, INC. NCFD DEDICATION CEREMONY 201545 6/7/05 200.00 LIEBERT CASSIDY WHITMORE RETAINER AGREEMENT4/05 201546 6/7/05 1,300.00 LOCAL GOVERNMENT COMMISSION SMART GROWTH CODES WORKSHOP 6/2. 201547 6/7/05 55.00 LOPEZ III PROMOTIONAL ACTIVITIES 201548 6/7/05 54.67 LYNN PEAVEY LAB SUPPLIES 201549 6/7/05 199.00 MAIN I'EX, INC. GLIMMER ALL PURP. CLNR 4/1 GAL 201550 6/7/05 493.39 MMASC WALTER AMEDEE MMASC SEMINAR 7/6- 201551 6/7/05 235.00 MOBILE DATACOMM REPLACEMENT PHONES 201552 6/7/05 474.39 '1ORA EDUCATION REIMBURSEMENT 3/31-4/11/ 201553 6/7/05 185.00 MORA REIMB FIREHOUSE WORLD EXPO CONE I 201554 6/7/05 53.50 MORE DIRECT HP LASERJET 2430TN PRINTERS. CITY 201555 6/7/05 3,109.68 N & U TRUCKS & AUTO RECYCLING WINDSHIELD GREENTINT/BLUE SHADE 201556 6/7/05 145.00 N C CHAMBER OF COMMERCE CITY ENHANCEMENT FUND INV 138 201557 6/7/05 4,995.83 NAPA AUTO PARTS MOP 45735 SENSOR 201558 6/7/05 34.20 NEXTEL COMMUNICATIONS ACCT 481082028 201559 6/7/05 90.38 NEXUS INTEGRATION SERVICES PHONE 'MOVE- ADD- CHANGE' SERVICES 201560 6/7/05 1,580.00 OFFICE TEAM TEMP STAFFING/KEON VAUGHN K W/E 5 201561 6/7/05 318.24 ONE SOURCE DISTRIBUTORS MOP 67256 - RECEPTACLE COVERS 201562 6/7/05 65.95 PARIS LAS VEGAS ROOM RESERVATIONS IAFF EMS CONFEI 201563 6/7/05 863.31 PARKER NEWS SERVICE VIDEO CLIPS OF NEWS BROADCAST 201564 6/7/05 316.25 PERVO TRAFFIC CENTER MOP 63846 - PAINT 201565 6/7/05 703.72 POWERSTRIDE BATTERY CO INC H31XS BAII'LRIES 201566 6/7/05 104.11 PRUDENTIAL OVERALL SUPPLY MOP 45742 SUPPLIES 201567 6/7/05 335.91 r RCP BLOCK & BRICK INC. SPEC MIX CONCRETE 201568 6/7/05 164.4' ROJAS TRAVEL EXPS REIMB 201569 6/7/05 22.90 RUSS' BEE REMOVAL BEES REMOVED FROM TREE ON KJMBAI 201570 6/7/05 275.00 SAN DIEGO GAS & ELECTRIC ELECTRIC BILL/FACILITIES#10441036857 201571 6/7/05 1,747.13 SAN DIEGO GAS & ELECTRIC ELECTRIC BILL/STREET#76860974845 201572 6/7/05 1,431.59 SAN DIEGO GAS & ELECTRIC ELECTRIC BILL/FACILITIES#68199629265 201573 6/7/05 638.58 SAN DIEGO GAS & ELECTRIC ELECTRIC BILL/FACILITIES#10439934345 201574 6/7/05 495.99 SAN DIEGO GAS & ELECTRIC ELECTRIC BILL/STREET#07385071072 201575 6/7/05 129.89 SAN DIEGO IMPERIAL COUNTIES AFL-CIO 17TH ANNUAL DINNER - NATIVI 201576 6/7/05 125.00 SANDAG SANDAG RETREAT 201577 6/7/05 567.40 SBC/MCI PAC BELL (SBC) C60-449-7549-555 201578 6/7/05 5,112.29 SBC/MCI ACCT 619 477-9738 643 8 201579 6/7/05 229.19 SCHMIDT DESIGN GROUP ARCHITECTURAL PLANS -PARADISE CRE 201580 6/7/05 689.85 SDCFCA SDCFCA DINNER - BATTALION CHIEF CC 201581 6/7/05 45.00 SKYLINE SUNROOMS PERMIT APPLICATION REFUND 201582 6/7/05 382.72 SOFTWARE SPECTRUM MICROSOFT EXCHANGE SERVER 2003 Si 201583 6/7/05 20,177.32 STARTECH COMPUTERS MOP 61744 SUPPLIES 201584 6/7/05 1,341.10 SWEETWATER AUTHORITY WATER BILLS/WASTEWATER#920-3000-0 201585 6/7/05 71.74 THE STAR NEWS LEGAL ADVERTISING OF JUNE 06, 2005 201586 6/7/05 166.57 UCMC: UNIV. COMMUNITY MEDICAL SEXUAL ASSAULT (SART) EXAMS AS NE 201587 6/7/05 525.00 VICTOR URIBE REIMBURSEMENT CLASS A LICENSE 201588 6/7/05 65.00 VWR SCIENTIFIC LAB SUPPLIES 201589 6/7/05 238.99 WATERLINE - PSOC 3 METER STAND DOUBLE RAIL/MAXIFLE 201590 6/7/05 12,898.86 WEST GROUP PAYMENT CENTER THOMSON-WEST APR 21, 2005/MAY 20, 2( 201591 6/7/05 433.71 WILLY'S ELECTRONIC SUPPLY MOP 45763 SUPPLIES 201592 6/7/05 256.97 ASSOCIATED TOWING TOWED BUS #6010 FROM 18TH/EUCLID T 201593 6/7/05 250.00 BAFIERY SYSTEMS C-8D-BT 12V COMM'L 8D W/BUS TERMIN, 201594 6/7/05 646.18 BEJAR GATE CO. GATE GLIDES FOR SLIDE GATE 201595 6/7/05 86.20 4 CALIFORNIA COMMERCIAL SECURITY REPROGRAM CAMERA TO AUTO-RPLC C CINTAS CORPORATION #694 COPY POST PRINTING CORPORATE EXPRESS EDCO DISPOSAL CORP JIM'S GLASS & SCREENS KIMBALL MIDWEST LASER SAVER INC M&M PLASTICS NEW FLYER PARTS ONE HOUR PHOTO STOP PETRO-DIAMOND INC. SAN DIEGO FRICTION PROD. Workers compensation checks MAINT LAUNDRY SERVICE 6000 BUS ROUTE 601 SCHEDULES OFFICE SUPPLIES EXTRA P/U FOR TRASH GLASS #6 FOR BUS 6015 339184 SS MS INK CARTG AND TONER MISCELLANEOUS BUS SUPPLIES AS NEE ASSY HOSE CAMERA REPAIR SERVICE DIESEL FUEL BUS PARTS AS NEEDED FOR FY05 Total 10043 10044 10045 10046 10047 10048 10049 10050 10051 10052 201596 201597 201598 201599 201600 201601 201602 201603 201604 201605 201606 201607 201608 6/7/05 6/7/05 6/7/05 6/7/05 6/7/05 6/7/05 6/7/05 6/7/05 6/7/05 85.00 6/7/05 215.68 6/7/05 390.99 6/7/05 240.71 6/7/05 58.34 209.96 231.17 251.92 717.99 915.37 32.27 13,244.83 323.23 133,388.22 10041 6/1/05 9.25 10042 6/1./05 469.50 6/1/05 495.00 6/1/05 176.33 6/1/05 285.99 6/1/05 72.25 6/1/05 676.18 6/1/05 96.28 6/1/05 314.64 6/1/05 129.84 6/1/05 350.00 6/1/05 87.29 PAYROLL Total 10053 6/1/05 88.02 10054 6/1/05 131.31 10055 6/1/05 87.46 10056 6/1/05 241.55 10057 6/1/05 69.84 10058 6/1/05 400.00 10059 6/1/05 1,192.46 10060 6/1/05 12.24 10061 6/1/05 1,600.00 10062 6/1/05 320.00 10063 6/1/05 879.20 8,184.63 Pay period Start Date End Date Check Date 254 5/10/05 5/23/05 6/1/05 Total 853,557.11 GRAND TOTAL 995,129.96 TRANSIT WARRANTS CK#201593-201608 16 CHECKS $ 17,899.84 PAID OUT OF HUD GUARANTEED LOAN FUND ACCT FOR THE CONSTRUCTION OF THE NEW FIRE STATION. CK#200126-200128 3 CHECKS $ 11,880.51 • 6 City of National City Warrant Register # 38 6/7/05 00 GENERAL FUND 104 LIBRARY FUND 105 PARKS MAINTENANCE FUND 120 PLAN CHECKING REVOLVING FUND 125 SEWER SERVICE FUND 126 FIRE DEPT ACTIVITIES FUND 136 TINY TOT CLASSES FUND 154 STATE PUBLIC LIBRARY FUND 171 LIBRARY SCHOOL DISTRICT CNTRCT 172 TRASH RATE STABILIZATION FUND 173 NATIONAL SCHOOL DIST CONTRACT 174 SWEETWATER SCHOOL DIST CONTRAC 188 GRANT- HIDTA 191 STOP PROJECT 211 SECURITY AND ALARM REGULATION FUND 212 PERSONNEL COMPENSATION FUND 222 WOW MOBILE GRANT FY 2000-2001 230 ABANDONED VEHICLE ABATEMENT GRANT 246 WINGS GRANT 250 NEW FIRE STATION CONSTRUCTION 254 LEAD -BASED PAINT HAZARD REDUCTION GRANT 273 CBAG-MAJOR MEXICAN TRAFFICKERS 274 LITERACY INITIATIVE XIII 276 LITERACY SERVICES YEAR 2 280 AMERICORPS/CNCS YEAR 2 GRANT 301 GRANT-C.D.B.G. 302 CDC PAYMENTS 303 CAPITAL FACILITIES FUND 307 PROPOSITION A" FUND 348 STATE GRANT 552 TDA 626 FACILITIES MAINT FUND 627 LIABILITY INS. FUND 628 GENERAL SERVICES FUND 629 INFORMATION SYSTEMS MAINTENANC 630 OFFICE EQUIPMENT DEPRECIATION 631 TELECOMMUNICATIONS REVOLVING 632 GENERAL ACCOUNTING SERVICES 643 MOTOR VEHICLE SVC FUND Total 663,932.00 35,351.69 19,147.99 181.12 15,048.12 711.61 310.43 1,022.06 1,211.36 1,858.83 2,529.64 5,517.64 4,089.03 951.99 1,283.33 0.00 1,272.82 4,035.59 27, 880.66 11,880.51 8,311.21 3,793.75 1,029.20 863.89 1,145.89 9,754.92 15,159.44 13,547.23 3,961.95 689.85 17,899.84 22,920.63 11, 747.98 6,109.11 23,780.75 8,062.94 15,604.14 19, 014.60 13, 516.22 995,129.96 7 Certification IN ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE HEREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS AND DEMANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. CITY MANAGER FINANCE COMMITTEE NICK INZUNZA, MAYOR -CHAIRMAN RONALD J. MORRISON, MEMBER FRANK PARRA, MEMBER LUIS NATIVIDAD, MEMBER ROSALIE ZARATE, MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER IS AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY THE CITY COUNCIL ON THE 19 tiDAY OF JULY 2005. AYES NAYS ABSENT MEETING DATE July 19, 2005 City of National City, California COUNCIL AGENDA STATEMENT 18 AGENDA ITEM NO. ITEM TITLE WARRANT REGISTER #49 PREPARED BY DEPARTMENT Finance EXPLANATION City Manager Lin Wurbs 619-336-4240 Ratification of Warrant Register #49 per Government Section Code 37208. CEnvironmental Review N/A Financial Statement Not applicable. Approved By: Finance Director Account No. STAFF RECOMMENDATION I recommend ratification of these warrants for a total of $ 574,044.69. BOARD / COMMISSION IREC SIMEND 0 ATTACHMENTS ( Listed Below) Resolution No. 1. Warrant Register #49 2. Workers Comp Warrant Register dated 06/08/05 A-200 (9;99) City of National City WARRANT REGISTER # 49 6/14/05 Payee Description chk no chk date amount SAN DIEGO PARALEGAL ASSO JUNE PARALEGAL DAY CELEBRATION 6/15/0:201609 6/10/05 20.00 BAKER & TAYLOR BOOKS 201610 6/13/05 1,179.99 BRODART INC. PERIODICALS AND NEWSPAPERS 201611 6/13/05 3,524.64 CHECKPOINT SYSTEMS INC. MATERIAL & SUPPLIES 201612 6/13/05 151.87 CITY OF NATIONAL CITY .TUNE SALES TAX 201613 6/13/05 50.10 DIEGO & SON PRINTING CO. MATERIALS & SUPPLIES 201614 6/13/05 676.67 JANIE ANDERSON, CFRE CONTRACT SERVICES(CAPITAL OUTLAY) 201615 6/13/05 4,563.50 MIDWEST TAPE PHOTOGRAPHIC SUPPLIES 201616 6/13/05 1,398.09 NOLO PRESS, INC. BOOKS 201617 6/13/05 20.43 OFFICE SUPPLIES PLUS OFFICE SUPPLIES 201618 6/13/05 179.75 .QUILL CORPORATION MATERIALS & SUPPLIES 201619 6/13/05 615.47 SCHOLASTIC LIBRARY PUBLISHIN PERIODICALS AND NEWSPAPERS 201620 6/13/05 1,995.00 SMART & FINAL MATERIALS AND SUPPLIES 201621 6/13/05 98.79 THE NAMETAG SOURCE, LLC OFFICE SUPPLIES 201622 6/13/O5 709.33 THE VIDEO STORE SHOPPER MATERIALS & SUPPLIES 201623 6/13/05 698.80 THOMSON GALE BOOKS 201624 6/13/05 1,236.85 U.S. POSTMASTER POSTAGE 201625 6/13/05 378.50 VIDEOS BELLA, M. PHOTOGRAPHIC SUPPLIES 201626 6/13/05 967.60 WALLACE CONTRACT SERVICES(CAPITAL OUTLAY) 201627 6/13/05 4,900.00 ALTON TRAVEL (AMERICORPS/LSTA Y-2) 201628 6/13/05 106.42 AMEDEN TRAVEL (AMERICORPS/LSTA Y-2) 201629 6/13/05 51.00 BAUTISTA TRAVEL (AMERICORPS/LSTA Y-2) 201630 6/13/05 76.16 BELL TRAVEL (AMERICORPS/LSTA Y-2) 201631 6/13/05 78.88 BOOKPOWER BOOKS (LIT. SVCS. Y-2) 201632 6/13/05 75.32 BRADSHAW TRAVEL (LIT. INIT. XIII) 201633 6/13/05 10.94 jAGLIERO TRAVEL (AMERICORPS/LSTA Y-2) 201634 6/13/05 27.40 1 Payee CATHAY RETA CATHAY RETA CITY OF NATIONAL CITY COPIER SOLUTIONS COPYRIGHT CLEARANCE CENTER CREECH DEERING DILLE DILLE EBSCO EMBASSY SUITES EMMA TORREZ FEDEX FENCL FERGUSON FRANCES WILLIAMS HOUSER FRIENDS OF THE READ/SAN DIEGO FULGHUM-NUTTERS GARY BELL DESIGN ASSOC. GRIFFIN HARPER HARTZ HOLCOMB HOWARD JACKIE CLARY JOAN SYKES JONES KELLY PAPER City of National City WARRANT REGISTER # 49 6/14/05 Description CONTRACT SERVICES (PRIME TIME) TRAVEL (PRIME TIME) TAXES (WINGS/LIT. SVCS. Y-2) PRINTING & BINDING (LIT. SVCS. Y-2) MATERIALS & SUPPLIES (LIT. INIT. XIII) TRAVEL (LIT. INIT_ XIII) TRAVEL (AMERICORPS/LSTA Y-2) EXPERT SERVICES (PRIME TIME) TRAVEL (PRIME TIME) MATERIALS & SUPPLIES (LIT. SVCS. Y-2) TRAVEL (LIT. INIT. XIII) TRAVEL (LIT. INIT. XIII) POSTAGE (LIT. SVCS. Y-2) TRAVEL (AMERICORPS/LSTA Y-2) TRAVEL (LIT. INIT. XIII) TRAVEL (LIT. SVCS. Y-2) TRAVEL (LIT. INIT. XIII) EXPERT SERVICES (LIT. SVCS. Y-2) TRAVEL (AMERICORPS/LSTA Y-2) TRAVEL (AMERICORPS/LSTA Y-2) TRAVEL (AMERICORPS/LSTA Y-2) TRAVEL (AMERICORPS/LSTS Y-2) TRAVEL (AMERICORPS/LSTA Y-2) TRAVEL (LIT. INIT_ XIII) TRAVEL (LIT. INIT. X111) TRAVEL (LIT. INIT. XIII) MATERIALS & SUPPLIES (LIT. SVCS. Y-2) clik no chk date amount 201635 6/13/05 2,000.00 201636 6/13/05 690.23 201637 6/13/05 195.97 201638 6/13/05 599.95 201639 6/13/05 66.00 201640 6/13/05 127.98 201641 6/13/05 35.70 201642 6/13/05 125.00 201643 6/13/05 23.49 201644 6/13/05 20.60 201645 6/13/05 5,506.65 201646 6/13/05 57.63 201647 6/13/05 322.99 201648 6/13/05 83.98 201649 6/13/05 212.21 201650 6/13/05 75.00 201651 6/13/05 112.44 201652 6/13/05 400.00 201653 6/13/05 128.79 201654 6/13/05 34.68 201655 6/13/05 74.46 201656 6/13/05 18.36 201657 6/13/05 28.51 201658 6/13/05 43.74 201659 6/13/05 32.16 201660 6/13/05 491.75 201661 6/13/05 1,389.77 2 LITERACYWORKS LITERACYWORKS LITERACYWORKS LITERACYWORKS LOPEZ MIDWEST TAPE MOORE MORENO MORIARTY VINNIS O'HARA OFFICE SUPPLIES PLUS PEARSON EDUCATION PIMENTEL POSTMASTER PREVEDEL QUILL CORPORATION RAMOS RANDALL WEAVER ROBINSON ROSS RUTH SAN MATEO PROJECT READ SAN MATEO PUBLIC LIBRARY ;ANCHEZ City of National City WARRANT REGISTER # 49 6/14/05 Payee Description chk no chk date amount KELTNER TRAVEL (LIT. INIT. XIII) 201662 6/13/05 107.18 LITERACYWORKS EXPERT SERVICES (AMERICORPS/LSTA Y-2) 201663 6/13/05 10,000.00 EXPERT SERVICES (AMERICORPS/LSTA Y-2) 201664 6/13/05 8,500.00 CONTRACT SERVICES (AMERICORPS/LSTA Y. 201665 6/13/05 5,500.00 CONTRACT SERVICES (LIT. INIT. XIII) CONTRACT SERVICES (LIT. INIT. XIII) TRAVEL (AMERICORPS/LSTA Y-2) VIDEOS (WOW) TRAVEL (AMERICORPS/LSTA Y-2) TRAVEL (LIT. INIT. XIII) TRAVEL (LIT. INIT. XIII) TRAVEL (AMERICORPS/LSTA Y-2) TRAVEL (LIT. INIT. XIII) OFFICE SUPPLIES (AMERICORPS/LSTA Y-2) INSTRUCTIONAL SUPPLIES (LIT. SVCS. Y-2) TRAVEL (AMERICORPS/LSTA Y-2) POSTAGE (LIT. SVCS. Y-2) EXPERT SERVICES (LIT. INIT. XIII) OFFICE SUPPLIES (LIT. SVCS. Y-2) TRAVEL (AMERICORPS/LSTA Y-2) TRAVEL (LIT. INIT. XIII) TRAVEL (AMERICORPS/LSTA Y-2) TRAVEL (AMERICORPS/LSTA Y-2) TRAVEL (AMERICORPS/LSTA Y-2) CONTRACT SERVICES (LIT. INIT. XIII) EXPERT SERVICES (LIT. SVCS. Y-2) TRAVEL (AMERICORPS/LSTA Y-2) 201666 6/13/05 5,000.00 201667 6/13/05 5,000.00 201668 6/13/05 15.64 201669 6/13/05 986.48 201670 6/13/05 12.58 201671 6/13/05 55.28 201672 6/13/05 27.95 201673 6/13/05 189.38 201674 6/13/05 924.10 201675 6/13/05 421.03 201676 6/13/05 304.10 201677 6/13/05 52.70 201678 6/13/05 87.14 201679 6/13/05 3,000.00 201680 6/13/05 556.63 201681 6/13/05 155.04 201682 6/13/05 96.57 201683 6/13/05 32.30 201684 6/13/05 97.58 201685 6/13/05 30.98 201686 6/13/05 8,000.00 201687 6/13/05 3,000.00 201688 6/13/05 13.60 3 Payee SCLLN SHIELDS SMART & FINAL SOCIAL STUDIES SCHOOL SERVICE SORENSEN STRATEGIC RESOURCE COMPANY TACKETT TEACHING STUFF INC. TORRES TORRES TROUSDALE WRIGHT City of National City WARRANT REGISTER # 49 6/14/05 Description chk no TRAVEL (LIT. SVCS. Y-2) TRAVEL (LIT. INIT. XIII) INSTRUCTIONAL SUPPLIES (LIT. SVCS. Y-2) BOOKS (LIT. SVCS. Y-2) TRAVEL (AMERICORPS/LSTA Y-2) EXPERT SERVICES (AMERICORPS/LSTA Y-2) TRAVEL (LIT. INIT. XIII) MATERIALS & SUPPLIES (WINGS) EXPERT SERVICES (PRIME TIME) TRAVEL (PRIME TIME) TRAVEL (AMERICORPS/LSTA Y-2) TRAVEL (LIT. INIT. XIII) ADDICTION MEDICINE CONSULTAN MEDICAL SERVICES ADVANCE REPROGRAPHICS REPRO OCE DIGITAL BOND COPY ALCEM FENCE CO., INC, AMEDEE 201689 201690 201691 201692 201693 201694 201695 201696 201697 201698 201699 201700 201701 201702 LABOR AND EQUIPMENT TO REPAIR SIDEWA201703 REIMB TRVL EXPS-EMRGNCY SRVCS TRA1NI201704 AMEDEE REIMB FOR GAS VEHICLE#400 AMERICAN COUNCIL ON EXERCISE REGISTRATION/GARCIA & KELLER AMOR'S CONSTRUCTION REFUND PLANNED DEVLOPMENT FEES ASSI SECURITY, INC. BEST BUY CO., INC BOTANICAL ENCLOSURES BRUCE W MADISON BUSH POWER BRAKE SERVICE CAPE CAFE LA MAZE CALIFORNIA LAW ENFORCEMENT PARTS AND LABOR FOR SERVICE CALL ON 201705 201706 201707 201708 INV#03080503108116 SHIP CHAR FR PO#67400 201709 INSTALL MIRRORS TO 2 CORNERS IN CHIEF'S 201710 REIMB/CLASS B DRIVER'S LICENSE/MADISO1'201711 MOP 45694 REPAIR ROTORS FIRE/LTD JUNE 2005 201712 201713 PROMOTIONAL. ACTIVITIES JAN THRU APR'0`201714 PD / LTD TUNE 2005 201715 chk date amount 6/13/05 150.00 6/13/05 79.80 6/13/05 88.05 6/13/05 1,056.90 6/13/05 77.22 6/13/05 1,458.64 6/13/05 36.00 6/13/05 2,513.84 6/13/05 125.00 6/13/05 93.32 6/13/05 54.40 6/13/05 41.72 6/14/05 49.50 6/14/05 1,182.77 6/14/05 1,460.00 6/14/05 259.74 6/14/05 54.45 6/14/05 400.00 6/14/05 662.50 6/14/05 350.00 6/14/05 41.99 6/14/05 300.00 6/14/05 35.00 6/14/05 50.00 6/14/05 640.00 6/14/05 355.37 6/14/05 1,716.00 4 Payee CASWELL INTERNATIONAL CORP. CEB CHEVRON USA, INC. CINGULAR WIRELESS CINGULAR WIRELESS CITY OF NATIONAL CITY CONSTRUCTION ELECTRONICS IN COPY WORLD CORPORATE EXPRESS CRUZ DANIEL PEARCE/ RPM WELDING )APPER TIRE COMPANY DAY WIRELESS SYSTEMS DELL MARKETING CORP DEPT OF CONSERVATION DOKKEN ENGINEERING EDCO DISPOSAL CORPORATION EMPLOYMENT DEVELOPMENT DE ENVIRONMENTAL BUSINESS ENVIRONMENTAL HAZARDS SERV F & E HEDMAN FEDEX FLEETPRIDE FORTIS BENEFITS INSURANCE CO FORTIS BENEFITS INSURANCE CO GEOCON 2IL City of National City WARRANT REGISTER # 49 6/14/05 Description chk no RUBBER COMPOSITE BULLET TRAP, SHORT CA CIVIL DISCOVERY PRACTICE UPDATE MOP 45699 GAS CARD WIRELESS SRVC #0045535344 ACCT 619-607-8115 PETTY CASH REFUNDS 201716 201717 201718 201719 201720 201721 MAY 2005 MAINT CONTRACT FOR SECURITY 201722 COPY AGENDA FOR 5/17/05 AND 6/07/05 MOP 45704 - OFFICE SUPPLIES 201723 201724 RFND CITATION#NC240921046 CITE REDUCEI201725 MOP 45749 REPAIR BRUSH ROLLER ARM 201726 TIRES 201727 MAINTENANCE AND REPAIRS FOR NON-SAF:201728 DELL POWER EDGE 2850 SERVER, 3.0 GHX, 3 201729 SMIP FEES FOR JAN 2005 - MAR 2005 APR 2005 SRVCS-PLAZA BLVD WIDENING SRVC FOR CLEAN UP EVENT 5/14/05 201730 201731 201732 CITY SHARE UNEMPLYMNT INS JAN - MAR 2(201733 PW YARD FUEL FACILITY 2100 HOOVER AVE 201734 2889,0550,0549,0552,0551,1234 DOUBLE SIGNATURE PLATE FEDEX TRANSPORTATION CHARGES 4/26/05 LOADED CALIPER MGMT/LTD DUNE 2005 STD/LTD DUNE 2005 201735 201736 201737 201738 201739 201740 T&A00846 BORING FOR SOIL SAMPLS HIGHL1201741 REIMB FOOD FOR CLEAN UP EVENT 201742 chk date amount 6/14/05 4,340.50 6/14/05 281.22 6/14/05 100.46 6/14/05 1,998.18 6/14/05 78.35 6/14/05 1,119.22 6/14/05 843.55 6/14/05 828.88 6/14/05 767.53 6/14/05 50.00 6/14/05 55.00 6/14/05 1,410.74 6/14/05 1,526.29 6/14/05 20,711.10 6/14/05 1,114.91 6/14/05 1,120.46 6/14/05 7,516.00 6/14/05 1,077.00 6/14/05 1,819.75 6/14/05 372.00 6/14/05 654.56 6/14/05 115.63 6/14/05 564.42 6/14/05 3,193.73 6/14/05 7,694.83 6/14/05 2,000.00 6/14/05 58.23 5 Payee HARLAN HEALTH NET HEALTH NET HEALTH NET HEALTH NET HEARTLAND COMM. FAC. AUTHOR HOLIDAY INN EXPRESS IKON OFFICE SOLUTIONS/IOS JAS PACIFIC, INC. JONES L.C. ACTION POLICE SUPPLY LASER SAVER INC LAUGHLIN FALBO LEVY & M LOCAL GOVERNMENT PUBLICATI LOPEZ MAINTEX, INC. METROCALL MMASC MONTGOMERY KONE, INC. MX LOGIC, INC NATIONAL SCHOOL DISTRICT NC SENIOR NUTRITION PROGRAMS NC SENIOR NUTRITION PROGRAMS NEXUS INTEGRATION SERVICES OFFICE TEAM OFFICE TEAM OFFICE TEAM City of National City WARRANT REGISTER # 49 6/14/05 Description chk no chk date amount ADV MEALS/MILEAGE-MICHAEL HARLAN 201743 6/14/05 142.62 HEALTH-RET INS 57135F JUNE 2005 201744 6/14/05 4,409.56 HEALTH -ELECT INS JUNE 2-2005 85027A 201745 6/14/05 4,245.63 HEALTH NET - 85027B JUNE 2005/MYERS BUR201746 6/14/05 979.13 HEALTH NET - 57135J JUNE 2005/WILLIAMS 201747 6/14/05 285.90 4TH QUARTER BILLING: MEMBER AGENCY 201748 6/14/05 26,068.00 ADV LODGING/MICHAEL HARLAN 201749 6/14/05 278.46 COPIER METER READINGS FOR FY0405 201750 6/14/05 14,873.41 JIM MCCOY BLDG INSPECTOR FEES 201751 6/14/05 6,483.99 REND CITATION#NC241230030 CITE REDUCEI201752 6/14/05 50.00 BACKSTRAP INSERTS,FLOOR PLATE GRIPS 201753 6/14/05 639.77 MOP 45725 EPP (74A) COMPATIBLE NO CORE 201754 6/14/05 107.64 WC CLAIM COSTS PROFF SRVCS APR 2005 201755 6/14/05 566.00 LONGTIN'S CA LAND USE 2005 UPDATE 201756 6/14/05 119.56 TRANSLATION SRVCS JUN 7 & APR 5, 2005 201757 6/14/05 235.00 JANITORIAL SUPPLIES 201758 6/14/05 1,477.99 PAGING SRVCS-POLICE/PW #270-693134 201759 6/14/05 1,294.34 MMASC MEMBERSHIP/WALTER AMEDEE 201760 6/14/05 50.00 REPAIRS NOT COVERED BY MAINT AGREEM1201761 6/14/05 338.84 EMAIL PROTECTION, ANTI-SPAM SERVICE, 201762 6/14/05 441.00 USE OF FACILITIES FOR NEIGHBORHOOD MT 201763 6/14/05 290.00 CATERING 4/26/05 INT'L PARADE & CONE 201764 6/14/05 135.03 CATERING 5/27/05 WAR MEMORIAL DEDICA"I 201765 6/14/05 100.00 PHONE 'MOVE- ADD- CHANGE' SERVICES, AS 201766 6/14/05 376.00 TEMP SRVCS OLSON JOSEPH W/E 5/27/05 201767 6/14/05 959.20 TEMP SRVCS JOSEPH OLSON W/E 05/20/05 201768 6/14/05 1,246.96 TEMP STAFFING/KEON VAUGHN K W/E 5/27/0201769 6/14/05 397.80 6 City of National City WARRANT REGISTER # 49 6/14/05 Payee ORCUTT PARRA PEDERSON POWERSTRIDE BATTERY CO INC PUBLIC EMP RETIREMENT SYSTEM REMEDY INTELLIGENT STAFFING ROJAS RON TURLEY ASSOCIATES, INC SAN DIEGO NEIGHBORHOOD NEWS SBC/MCI SDAPSD -3IGN MASTERS SIMPLEXGRINNELL SPANKY'S PORTABLE SERVICES IN SPARKLETTS SPECIALTY LIGHTING STRATACOM SUN TRUST SWEETWATER AUTHORITY SWEETWATER AUTHORITY TARGET SPECIALTY PRODUCTS THE LIGHTHOUSE, INC. U.S. HEALTHWORKS UNITED PARCEL SERVICE US STERLING CAPITAL CORP VERIZON WIRELESS VILLY'S ELECTRONIC SUPPLY Description chk no chk date amount REIMB "CHANGES -DISCOVERY ACT OF 1986" 201770 6/14/05 REIMB FOOD FOR CLEAN UP EVENT REND CITATION#NC241201005 DISMISSAL REPAIR BATTERY CHARGER SERVICE PERIOD 05-05-4 201771 201772 201773 201774 TEMP SRVCS OCANO, DOLORES W/E 5/08/05 201775 125 PLAN REIMBURSEMENT CONTRACT MAINT AGREEMENT 8/1/05-7/31/01201777 ADVERTISEMENT FOR HOUSING INSPECTOR 201778 ACCT 339-342-2741-822 201776 201779 SDAPSD YEARLY MEMBERSHIP DUES 5/14/05 201780 LETTER SMALL TRAILER, 2 SIDES & BACK, 201781 DIE PLATE FOR TIME STAMP SPECIAL EVENT RENTAL & SRVC WATER FOR MAYOR & CITY COUNCIL LIGHT BULBS & FLUORESCENT LAMPS MOP 63845 PERSONNEL ACTION FORM 201782 201783 201784 201785 201786 NEW FIRE TRUCK RENTAL PAYMENT#16 6/30201787 WATER BILLS/FACILITIES 12 ACCOUNTS WATER BILLS/STREET 10 ACCOUNTS SEMINAR/PICHE & GROFF 6/23/05 MOP 45726 REPAIR LIGHT MEDICAL SRVCS DOT EXAM 4/11/05 UPS SHIPMENT TRADE SETTLING SRVCS 05/14-05/20/05 VERIZON ACCT 570210396-00001 MOP 45763 SUPPLIES 201788 201789 201790 201791 201792 201793 201794 201795 201796 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 95.00 271.13 35.00 103.00 63,205.63 141.84 239.62 1,250.00 138.60 872.76 25.00 996.68 161.57 446.20 36.13 123.91 106.02 5,009.63 14,927.80 2,147.52 80.00 75.00 55.00 30.37 198.00 3,441.80 158.10 7 Payee Z.A.P. MANUFACTURING, INC ZEE MEDICAL, INC. ATLAS RESTAURANT SUPPLY COMFORT HOUSE COMMUNITY YOUTH ATHLETIC CT DELTA DENTAL DELTACARE (PMI) DINNERWARE DEPOT FORTIS BENEFITS FORTIS BENEFITS INSURANCE CO HEALTH NET KAISER FOUNDATION HEALTH PLA SALTON RETAIL OUTLET ARCO GASPRO PLUS AT SYSTEMS WEST INC BAYSHORE TRANSIT MGMT INC COUNTY OF SAN DIEGO COUNTY OF SAN DIEGO DIXIELINE LUMBER CO EW TRUCK & EQUIPMENT CO INC GREAT AMERICAN INSURANCE CO KIMBALL MIDWEST LAWSON PRODUCTS , INC. NAPA AUTO PARTS City of National City WARRANT REGISTER # 49 6/14/05 Description 3290 5" C WHITE MISC. FIRST AID SUPPLIES, IE TAPE, 3-SHELF CART BREW CENTRAL COFFEEMAKER TABLE FOR CYAC DENTAL INS JUNE 2005 DENTAL INS PMI JUNE 2005 LEIFHEIT METALTHERM CARAFE VTL JUNE 2005 LIFE INS JUNE 2005 HEALTH INS JUNE 2005 57135A KAISER INS ACTIVE JUNE 2005 chk no 201797 201798 201799 201800 201801 201802 201803 201804 201805 201806 201807 201808 VITANTONIO VINTAGE TOASTER OVEN/BRO:201809 STAFF VEHICLE FUEL MONEY TRUCK - JUNE '05 PAYROLL CK DTD 06/03/05 PAYROLL PPE 05/28/05 - JOSE VAZQUEZ PAYROLL PPE 05/28/05 - SHERRY LOGEL SHOP SUPPLIES 201810 201811 201812 201813 201814 201815 AUTOMOTIVE PARTS AS NEEDED FOR FY040:201816 WC INSURANCE 80769 TOOL OIL 97159 SNGL STUD AUTO PARTS NATIONAL CITY PUBLIC LIBRARY LIBRARY DONATIONS - PPE 05/28/05 NATL CITY CHAMBER OF COMMER NEWSLETTER AD - 6 ISSUES NIEDERFRANK'S ICE CREAM SUN DOWNER 201817 201818 201819 201820 201821 201822 201823 chk date amount 6/14/05 170.42 6/14/05 496.13 6/14/05 210.00 6/14/05 271.80 6/14/05 300.00 6/14/05 16,406.80 6/14/05 3,475.20 6/14/05 215.53 6/14/05 2,460.67 6/14/05 1,954.08 6/14/05 62,793.90 6/14/05 98,899.99 6/14/05 69.33 6/14/05 390.79 6/14/05 367.45 6/14/05 42,101.71 6/14/05 50.00 6/14/05 23.04 6/14/05 105.77 6/14/05 192.65 6/14/05 10,669.92 6/14/05 148.81 6/14/05 52.64 6/14/05 421.52 6/14/05 29.85 6/14/05 810.00 6/14/05 140.00 8 City of National City WARRANT REGISTER # 49 6/14/05 Payee ORANGE COUNTY SALES, INC. PITNEY BOWES CREDIT CORP PRUDENTIAL INSURANCE SAN DIEGO COUNTY SHERIFF SAN DIEGO GAS & ELECTRIC SPARKLETTS THE HOME DEPOT CRC UNISOURCE MAINTENANCE SUPPL W.W. GRAINGER, INC. WAYNE ELECTRIC CO Description 3002 HIGH IMPACT CLEANER POSTAGE METER LIFE INSURANCE PAYROLL PPE 05/14/05 & 5/28/05 GAS 04/29/05 - 05/31/05 WATER 04/29/05 - 05/26/05 CLORINE TABS 75246244255 LAMP 112429.00 LEESON 1/2 HP MOTOR chk no chk date amount 201824 6/14/05 750.67 201825 201826 201827 201828 201829 201830 201831 201832 201833 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 6/14/05 223.26 233.26 100.00 140.49 89.53 64.63 372.72 169.54 635.73 Total $ 570,571.52 Workers compensation checks 10064 10065 10066 10067 10068 10069 10070 10071 10072 10073 10074 10075 10076 10077 6/8/05 6/8/05 6/8/05 6/8/05 6/8/05 6/8/05 6/8/05 6/8/05 6/8/05 6/8/05 6/8/05 6/8/05 6/8/05 6/8/05 8.97 59.29 71.86 66.00 66.00 66.00 44.00 110.00 392.45 646.18 400.00 1,140.12 370.00 32.30 Total $ 3,473.17 9 City of National City WARRANT REGISTER # 49 6/14/05 Payee Description chk no chk date amount LIBRARY WARRANTS CHECK#201610-201700 91 CHECKS TRANSIT WARRANTS CHECK#201810-201833 24 CHECKS Grand Total 574,044.69 $ 94,610.69 $ 58,283.98 10 City of National City WARRANT REGISTER #49 6/14/05 001 GENERAL FUND 292,247.33 104 LIBRARY FUND 108 LIBRARY CAPITAL OUTLAY 19,61. 9,463.50 0 111 P.O.S.T. FUND 120 PLAN CHECKING REVOLVING FUND 583.99 6 125 ,4.99 SEWER SERVICE FUND 1,460.00 136 TINY TOT CLASSES FUND 204 TRAFFIC EQUIPMENT FOR ALL 996.68196.6 6 208 SUPP.LAW ENFORCEMENT SVCS FUN 222 639.77 WOW MOBILE GRANT FY 2000-2001 986.48 241 NATIONAL CITY LIBRARY STATE GR 242 N. CITY LIBRARY MATCHING FUND 13,960.54 246 WINGS GRANT 7,517.22 1,895.54 254 LEAD -BASED PAINT HAZARD REDUC 372.00 274 LITERACY INITIATIVE XIII 275 EASY VOTER GUIDE GRANT 32,030.10 276 LITERACY SERVICES YEAR 2 1.01 278 5,981.09 AMERICORPS LSTA GRANT II 27,301.55 279 PRIME TIME FAMILY READING TIME 3,057.04 301 GRANT-C.D.B.G. 13,349.38 302 CDC PAYMENTS 19,156.38 307 PROPOSITION A" FUND 312 STP LOCAL/TRANSNET HIGHWAY 797.50 797.50 348 STATE GRANT 552 1,182.77 TDA 626 FACILITIES MAIM FUND 58,632.89 627 LIABILITY INS. FUND 15,266.64 628 GENERAL SERVICES FUND 8,1 629 1,021.2.44 INFORMATION SYSTEMS MAINTENA 2,534.55 630 OFFICE EQUIPMENT DEPRECIATION 00 631 TELECOMMUNICATIONS REVOLVI3 632 8,219.539. GENERAL ACCOUNTING SERVICES 696.68 633 UNEMPLOYMENT INSURANCE RES 1,077.00 643 MOTOR VEHICLE SVC FUND 2,544.39 724 COBRA/RETIREE INSURANCE 6,790.23 726 ENGINEERING/PUBLIC WORKS T & A 2,000.00 TOTAL 574,044.69 11 Certification IN ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE HEREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS AND DEMANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. FINAN E DIRECTOR CITY MANAGER FINANCE COMMITTEE NICK INZUNZA, MAYOR -CHAIRMAN RONALD J. MORRISON, MEMBER FRANK PARRA, MEMBER LUIS NATIVIDAD, MEMBER ROSALIE ZARATE, MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER IS AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY THE CITY COUNCIL ON THE 19TH DAY OF JULY 2005. AYES NAYS ABSENT City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE July 19, 2005 AGENDA ITEM NO. 19 /ITEM TITLE WARRANT REGISTER #50 PREPARED BY DEPARTMENT Finance City Manager EXPLANATION Lin Wurbs 619-336-4240 Ratification of Warrant Register#50 per Government Section Code 37208. Environmental Review N/A Financial Statement Not applicable. STAFF RECOMMENDATION Approved By: t,v7L �7„t,H, Finan irector Account No. I recommend ratification of these warrants for a total of $ 1,081,282.64 BOARD / COMMISSION RECOMMENDATION C/A, ATTACHMENTS ) Listed Below) Resolution No. 1. Warrant Register #50 2. Workers Comp Warrant Register dated 06/15/05 3. Payroll Warrant Register dated 06/15/05 A-200 (9..99) .Steam •v City of National City WARRANT REGISTER # 50 6/21/05 Payee Description chk no chk date amount MODULAR BUILDING CONCEPTS, INC MODULAR BLDGS FOR TEMPORARY STAFFING 200129 6/21/05 3,400.97 SCRIPPS BACK COMFORT TEMPUR TWIN LONG CLASSIC MATTRESS. 200130 6/21/05 8,111.09 ACEDO REIMB MEMBERSHIP/ ACEDO-DEESE 201834 6/21/05 320.00 ACEDO REIMB/FOOD ITEMS/YOUTH GRADUATE'S JUNE 201835 6/21/05 115.62 AMEDEE REIMB OF DVD PLAYER/WALTER AMEDEE 201836 6/21/05 86.16 ART D. NIELSEN PAINTING, INC. PAINTING VARIOUS CITY FACILITIES, AS 201837 6/21/05 672.00 BISHOP FILIPINO HERITAGE PARADE REIMBURSEMENT 201838 6/21/05 96.00 BOEGLER REIMBURSEMENT 6/6, 6/9/05 201839 6/21/05 69.41 BONITA PET HOSPITAL EMERGENCY ANIMAL CARE FOR STRAY ANIMALS 201840 6/21/05 44.50 BRATTIN MOTORS AUTO REPAIRS 201841 6/21/05 1,053.30 BUTLER'S MILL, INC. MOP 45694 FERTILIZER 201842 6/21/05 367.70 CALIFORNIA COMMERCIAL SECURITY MOP 45754 KEYS 201843 6/21/05 405.69 CAMUNAS BUSINESS LICENSE REFUND PAID ON 4/21/05 201844 6/21/05 50.00 CARQUEST AUTO PARTS MOP 47557 BRAKE ROTOR 201845 6/21/05 53.40 CEPA COMPANY TEST & CERTIFY FUME HOOD IN PROPERTY & 201846 6/21/05 125.00 CHILDREN'S HOSPITAL CHILD SEXUAL ASSAULT EXAMS AS NEEDED 201847 6/21/05 706.70 CHOICEPOINT AUTO TRACK DATABASE - UNLIMITED ACCESS 201848 6/21/05 100.00 CITY OF SOLANA BEACH QRTRLY LEAGUE DINNER JULY 21, 2005 201849 6/21/05 100.00 CITY OF SOLANA BEACH LEAGUE OF CA CITIES DINNER -FRANK PARRA 201850 6/21/05 100.00 CORPORATE EXPRESS HEWC6657AN. TONER CTRG, INKJT, TRICLR. 201851 6/21/05 761.06 CREATIVE IMAGES PHOTOGRAPHY DEPARTMENT PHOTOGRAPHS (3) 201852 6/21/05 48.38 CWEA-WORKSHOP CWEA REGISTRATION/JOE SMITH 7/12-13/05 201853 6/21/05 90.00 D-MAX ENGINEERING INC MAY 2005 SRVCS-STORM WATER SRVCS 201854 6/21/05 2,532.50 )EPARTMENT OF JUSTICE FINGERPRINTING CHARGES FOR NEW CITY 201855 6/21/05 864.00 DEPARTMENT OF JUSTICE FINGERPRINTING CHARGES FOR NEW CITY 201856 6/21/05 672.00 DEPARTMENT OF JUSTICE FINGERPRINTING CHARGES FOR NEW CITY 201857 6/21/05 102.00 1 DEPARTMENT OF TRANSPORTATION HIGHWAY LIGHTING APRIL 2005 BILLING 201858 6/21/05 7,225.06 DIXIELINE LUMBER CO. MOP 45707 - UTILITY KNIFE/BLADES 201859 6/21/05 467.54 i DTSC EPA FEES: EPA#CAL000265249 201860 6/21/05 / 215.00 ENVIRONMENTAL BUSINESS DEC 2004 SRVCS-2100 HOOVER AVE 201861 6/21/05 10,719.79 ESGIL CORPORATION PLANS SENT TO ESGIL 5/01/05 THRU 5/31/05 201862 6/21/05 11,155.68 EXPRESS PRINTING STORMWATER FLYER & HANDOUT 201863 6/21/05 1,334.27 FEDEX FEDEX CHARGES - INV 3-871-72227 201864 6/21/05 16.50 FEDEX FEDEX CHARGES -BOA 201865 6/21/05 18.89 FEDEX KINKO'S NEIGHBORHOOD COUNCIL MTGS 201866 6/21/05 187.05 FIRE ETC NCFD DEDICATION CEREMONY 201867 6/21/05 176.71 FLEET SERVICES, INC PART #47693 201868 6/21/05 512.99 FLOWERS 4 YOU MOP 66155 FLOWERS/MEMORIAL DAY WREATH 201869 6/21/05 349.41 FON-JON KENNELS KENNEL FOR POLICE K9'S WHILE OFFICERS 201870 6/21/05 400.00 HARTS AUTO SUPPLY BRAKE PARTS 201871 6/21/05 256.00 HERNANDEZ ADV MEALS/MILEAGE/HERNANDEZ- 201872 6/21/05 282.71 HODGES REIMB FOR VEHICLE MILEAGE/BRENDA HODGES 201873 6/21/05 210.29 HOME DEPOT/GECF SQUARE 201874 6/21/05 197.05 INGERSOLL-RAND COMPANY 37947793. ANDEROL 500, 1 GALLON. 201875 6/21/05 390.48 IOS INTEGRATED OFFICE SYSTEMS ANNUAL FACSIMILE MAINTENANCE - POLICE 201876 6/21/05 593.25 JANIKING OF CALIFORNIA INC APR 2005 JANITORIAL SERVICES 201877 6/21/05 525.00 LASER SAVER INC MOP 45725 HP 2100/2200 96A COMPATIBLE 201878 6/21/05 139.97 LEGAL REPROGRAPHICS INC. COPIES OF EXPENSES FOR UNION TRIBUNE 201879 6/21/05 63.42 LEXIS-NEXIS ONLINE CHARGES MAY 2005 201880 6/21/05 133.33 LOCAL GOVERNMENT PUBLICATIONS LONGTIN'S CALIFORNIA LAND USE BOOK 201881 6/21/05 119.56 LONG'S DRUG STORES MOP 45727 DEPARTMENT CARDS 201882 6/21/05 7.47 MAIN ST. ANIMAL HOSPITAL VET CARE FOR POLICE K9 DOGS. INCLUDES 201883 6/21/05 52.60 MAINTEX, INC. SANITARE VACUUM 201884 6/21/05 301.70 MAN K-9 INC. POLICE K9 SERVICE DOG, P.O.S.T. 201885 6/21/05 4,300.00 MASON'S SAW & LAWNMOWER SRVC MOP 45729 HEDGE TRIMMER 201886 6/21/05 432.99 MENDEOLA REFUND OVERCHARGED FOR SEWER CHARGES 201887 6/21/05 276.00 NALEO NALEO MEMBERSHIP MAYOR INZUNZA 201888 6/21/05 100.00 2 NAPA AUTO PARTS MOP 45735 OIL FILTER/BRAKE PADS 201889 6/21/05 186.28 )NE SOURCE DISTRIBUTORS MOP 67256 CONDUIT 201890 6/21/05 59.64 OUCHI'S POWER EQUIPMENT 23.6CC WEEDER 201891 6/21/05 / 581.83 P G AUTO PARTS ALTERNATOR REBUILT 201892 6/21/05 154.94 PALACIOS REFUND/LOWERED NUMBER OF AMPS 201893 6/21/05 67.00 PARTS PLUS AUTOSTORE #713 MOP 64946 DRUMS/ROTORS 201894 6/21/05 94.63 PBS&J PROF SRVCS APR 1-30, 2005 201895 6/21/05 850.00 PEACE OFFICERS RESEARCH PORAC/PEACE OFFICER RESEARCH ASSOC 201896 6/21/05 70.00 POOL SUPPLY OF ORANGE COUNTY LIQUID CHLORINE, $.81/GALLON. TO BE 201897 6/21/05 698.22 PROGRESSIVE SOLUTIONS INC. CASHIERCENTRAL SOFTWARE MAINTENANCE - 4 201898 6/21/05 5,470.13 PROTECT AMERICA INC. JUNE 05 SERVICES 201899 6/21/05 29.95 PRUDENTIAL OVERALL SUPPLY MOP 45742 UNIFORMS - PARK 201900 6/21/05 227.36 PUBLIC EMP RETIREMENT SYSTEM SERVICE PERIOD 06-05-3 201901 6/21/05 62,510.59 SAN DIEGO GAS & ELECTRIC ELECTRIC BILL/STREET#10093014384 201902 6/21/05 26,695.85 SAN DIEGO GAS & ELECTRIC ELECTRIC B1LL/STREET#98917081416 201903 6/21/05 3,419.73 SAN DIEGO GAS & ELECTRIC ELECTRIC BILL/FACILITIES#10091911839 201904 6/21/05 1,148.61 SAN DIEGO GAS & ELECTRIC 2ND INSTALLMENT PROPERTY TAXES 201905 6/21/05 405.81 SAN DIEGO GAS & ELECTRIC ELECTRIC BILL/WASTEWATER#10092646814 201906 6/21/05 111.41 SAN DIEGO GAS & ELECTRIC ELECTRIC BILL/WASTEWATER#29491892373 201907 6/21/05 105.92 SANGIS GIS LAND BASE SOUTH MAP AND 201908 6/21/05 5,387.50 SDAPSD ADV TUITION/MARY GAFFNEY 201909 6/21/05 35.00 SMART & FINAL MOP 45756 MISC SUPPLIES 201910 6/21/05 5.40 SOUTHERN CALIF TRUCK STOP MOP 45758 PROPANE 201911 6/21/05 35.72 SOUTHWEST SIGNAL SERVICE, INC. TRAFFIC SIGNAL, STREET LIGHTING 201912 6/21/05 7,438.27 STARTECH COMPUTERS MOP 61744 COMPUTER SUPPLIES 201913 6/21/05 1,552.31 TARGET SPECIALTY PRODUCTS BEST 16-6-8 TURF SUPREME 201914 6/21/05 1,095.17 THE FILIPINO PRESS DISPLAY ADVERTISING 201915 6/21/05 450.00 THE LIGHTHOUSE, INC. MOP 45726 FUNCTION CONTROLLER 201916 6/21/05 595.34 'CMC: UNIV. COMMUNITY MEDICAL SEXUAL ASSAULT (SART) EXAMS AS NEEDED 201917 6/21/05 525.00 UNDERGROUND SERV ALERT UNDERGROUND SERVICE/MAY 2005 201918 6/21/05 134.40 VIDEO MONITORING SERVICES VIDEO MONITORING - MAYOR INZUNZA 201919 6/21/05 762.06 3 VISTA PAINT HOSE AIRLESS 3'X3/16" 201920 6/21/05 477.06 WEST GROUP PAYMENT CENTER WESTLAW ON-LINE CHARGES MAY 2005 201921 6/21/05 616.15 YAMBAO REIMB/CITIZEN WATERBILL 40 E PLAZA BLVD 201922 6/21/05 / 34.43 BEJAR GATE CO. REPAIR FRONT GATE 201923 6/21/05 150.00 BRIDGESTONE/FIRESTONE, INC. TIRES - MARCH'05 201924 6/21/05 3,540.98 CINTAS CORPORATION #694 MAINT LAUNDRY SERVICE 201925 6/21/05 433.39 CORPORATE EXPRESS OFFICE SUPPLIES 201926 6/21/05 42.37 DEPT OF TOXIC SUBSTANCE CNTRL EPA VERIFICATION & MANIFEST FEES 201927 6/21/05 15.00 DIXIELINE LUMBER CO SHOP SUPPLIES 201928 6/21/05 134.56 EW TRUCK & EQUIPMENT CO INC AUTOMOTIVE PARTS AS NEEDED FOR FY0405 201929 6/21/05 741.84 FEDEX SHIPPING CHARGES 201930 6/21/05 71.84 FIRST ADVANTAGE CORPORATION RANDOM SELECTIONS 201931 6/21/05 165.00 GIBBS OFFICE SUPPLIES/POTLUCK FOOD 201932 6/21/05 222.65 HIRECHECK, INC. BACKGROUND CHECKS 201933 6/21/05 49.06 JW HOWARD ATTORNEYS LEGAL FEES 201934 6/21/05 635.00 KIMBALL MIDWEST SALES TAX ON INV#447092, PO#67759 201935 6/21/05 11.02 PRINCIPAL FINANCIAL GROUP 401K PPE 05/28/05 201936 6/21/05 1,423.89 SAN DIEGO FRICTION PROD. BUS PARTS AS NEEDED FOR FY05 201937 6/21/05 1,680.79 SAN DIEGO GAS & ELECTRIC ELECTRIC 04/29/05 - 05/31/05 201938 6/21/05 1,719.23 SBC PHONE 06/05/05 - 07/04/05 201939 6/21/05 285.69 SPANKY'S, INC. PORT-A-POTTIE SERVICING 201940 6/21/05 396.43 WEBSTER TRAVEL - NTD SEMINAR 201941 6/21/05 486.14 CRAIG RCS DISPATCH TRAINING MAY 12, 2005 201942 6/21/05 400.00 EAST MESA PRINT SI-IOP PRINTING-800 MHZ REFERENCE GUIDE 201943 6/21/05 150.00 ENTERPRISE GROUP COPY PAPER 201944 6/21/05 2,693.86 JEFFREY D HEBERT RCS DISPATCH TRAINING MAY 6, 7 & 8, 201945 6/21/05 1,100.00 MAHAR RCS RADIO TRAINING-PW & ENG'G 06/07/05 201946 6/21/05 600.00 SAN DIEGO GAS & ELECTRIC ELECTRIC BILL/FACILITIES #29728110755 201947 6/21/05 15,876.96 SAN DIEGO GAS & ELECTRIC ELECTRIC BILL/FACILITIES #94282909927 201948 6/21/05 9,571.11 SAN DIEGO GAS & ELECTRIC ELECTRIC BILL/FACILITIES #86482714057 201949 6/21/05 8,985.11 4 Workers compensation checks Total 235,821.82 10078 6/15/05 / 72.25 10079 6/15/05 83.94 10080 6/15/05 114.51 10081 6/15/05 258.62 10082 6/15/05 411.78 10083 6/15/05 340.74 10084 6/15/05 250.00 10085 6/15/05 78.42 10086 6/15/05 235.26 10087 6/15/05 615.02 10088 6/15/05 2,756.56 10089 6/15/05 185.43 10090 6/15/05 207.57 10091 6/15/05 18.17 10092 6/15/05 37.00 10093 6/15/05 197.92 10094 6/15/05 97.42 10095 6/15/05 99.40 10096 6/15/05 41.44 10097 6/15/05 10.25 10098 6/15/05 144.50 10099 6/15/05 545.26 10100 6/15/05 832.86 10101 6/15/05 18.00 10102 6/15/05 370.14 10103 6/15/05 229.43 10104 6/15/05 210.44 10105 6/15/05 286.62 10106 6/15/05 174.44 6 10107 6/15/05 490.00 10108 6/15/05 72.25 10109 6/15/05 / 220.40 10110 6/15/05 700.00 10111 6/15/05 110.23 10112 6/15/05 47.60 10113 6/15/05 83.12 10114 6/15/05 565.41 10115 6/15/05 241.04 10116 6/15/05 71.96 10117 6/15/05 1,128.44 10118 6/15/05 78.49 10119 6/15/05 18.86 10120 6/15/05 91.69 10121 6/15/05 155.42 10122 6/15/05 122.19 10123 6/15/05 166.82 10124 6/15/05 187.75 10125 6/15/05 414.81 10126 6/15/05 91.32 10127 6/15/05 1,378.61 10128 6/15/05 1,164.19 10129 6/15/05 400.00 10130 6/15/05 1,192.40 10131 6/15/05 320.00 10132 6/15/05 190.20 10133 6/15/05 72.00 10134 6/15/05 425.00 10135 6/15/05 812.50 10136 6/15/05 639.75 10137 6/15/05 1,575.00 7 PAYROLL Pay period Stari Date End Date Check Date 255 5/24/05 6/6/05 6/15/05 10138 6/15/05 53.00 10139 6/15/05 347.86 10140 6/15/05 / 116.69 10141 6/15/05 257.94 10142 6/15/05 81.61 10143 6/15/05 295.74 10144 6/15/05 45.24 Total Total 23,348.92 822,111.90 1,081,282.64 TRANSIT WARRANTS CK#201923-201941 19 CHECKS $ 12,204.88 PAID OUT OF HUD GUARANTEED LOAN FUND ACCT FOR THE CONSTRUCTION OF THE NEW FIRE STATION. C10 200129-200130 2 CHECKS $ 11,512.06 8 City of National City Warrant Register # 50 6/21/05 001 GENERAL FUND 719,915.59 104 LIBRARY FUND 33,302.66 105 PARKS MAINTENANCE FUND 20,524.74 110 EMERGENCY PREPAREDNESS FUND 86.16 120 PLAN CHECKING REVOLVING FUND 11,155.68 125 SEWER SERVICE FUND 14,793.31 126 FIRE DEPT ACTIVITIES FUND 176.71 154 STATE PUBLIC LIBRARY FUND 1,137.15 171 LIBRARY SCHOOL DISTRICT CNTRCT 1,310.97 172 TRASH RATE STABILIZATION FUND 1,957.40 173 NATIONAL SCHOOL DIST CONTRACT 2,605.46 174 SWEETWATER SCHOOL DIST CONTRAC 5,597.15 188 GRANT - HIDTA 4,241.84 191 STOP PROJECT 1,586.66 196 CAPITAL PROJECT RESERVE 10,719.79 211 SECURITY AND ALARM REGULATION FUND 1,283.33 212 PERSONNEL COMPENSATION FUND 3,500.00 222 WOW MOBILE GRANT FY 2000-2001 2,584.90 230 ABANDONED VEHICLE ABATEMENT GRANT 3,855.97 246 WINGS GRANT 25,498.39 250 NEW FIRE STATION CONSTRUCTION 11,512.06 254 LEAD -BASED PAINT HAZARD REDUCTION GRANT 8,568.84 273 CBAG-MAJOR MEXICAN TRAFFICKERS 2,761.61 274 LITERACY INITIATIVE XIII 1,029.20 276 LITERACY SERVICES YEAR 2 886.17 280 AMERICORPS/CNCS YEAR 2 GRANT 1,145.89 301 GRANT-C.D.B.G. 10,337.32 302 CDC PAYMENTS 14,528.75 307 PROPOSITION A" FUND 3,961.95 402 800 MHZ PROJECT 2,250.00 552 TDA 12,204.88 626 FACILITIES MAINT FUND 54,360.12 627 LIABILITY INS. FUND 26,912.27 628 GENERAL SERVICES FUND 8,246.51 629 INFORMATION SYSTEMS MAINTENANC 17,221.00 630 OFFICE EQUIPMENT DEPRECIATION 4,136.23 631 TELECOMMUNICATIONS REVOLVING 5,050.08 632 GENERAL ACCOUNTING SERVICES 15,458.94 643 MOTOR VEHICLE SVC FUND 14,876.96 Total 1,081,282.64 9 Certification IN ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE HEREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS AND DEMANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. CITY MANAGER FINANCE COMMITTEE NICK INZUNZA, MAYOR -CHAIRMAN RONALD J. MORRISON, MEMBER FRANK PARRA, MEMBER LUIS NATIVIDAD, MEMBER ROSALIE ZARATE, MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER IS AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY THE CITY COUNCIL ON THE 19TH DAY OF JULY 2005. AYES NAYS ABSENT City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE July 19, 2005 AGENDA ITEM NO. 20 ITEM TITLE WARRANT REGISTER #51 PREPARED BY DEPARTMENT Finance EXPLANATION City Manager Lin Wurbs 619-336-4240 Ratification of Warrant Register #51 per Government Section Code 37208. CEnvironmental Review N/A Financial Statement Not applicable. Approved By: -!L Pinang . ector Account No. STAFF RECOMMENDATION I recommend ratification of these warrants for a total of $ 457142.16 BOARD / COMMISSION RECOMi ATTACHMENTS ( Listed Below ) 1. Warrant Register #51 2. Workers Comp Warrant Register dated 06/22/05 Resolution No. A-200 (9,99) A PARTY RENTALS ACCOUNTEMPS ACCOUNTEMPS kCCOUNTEMPS ACCOUNTEMPS ACEDO ACEDO ALEXANDER'S LEGAL SEMINARS ALPHA PROJECT AMERICAN FORENSIC NURSES ASSI SECURITY, INC. AZTEC APPLIANCE BANK OF AMERICA BEST BEST & KRIEGER LLP BICYCLE DISCOVERY BOOT WORLD C.C. SERV., INC. CA. HIGHWAY PATROL 2,AROLINES FLOWERS City of National City WARRANT REGISTER # 51 6/28/05 Payee Description chk no chk date amount AMERIGAS - SAN DIEGO HYDROSTATE/FIRE STATION PROJECT 200131 6/28/O5 27.81 HODGES REIMB MICROWAVES FOR FIRE DEPT 200132 6/28/O5 279.98 PROMAXIMA, MFG. LTD. INSTALLATION/EIGHT STACK MULTI GYM 200133 6/28/05 11,310.00 REPUBLIC RELOCATION SERVICES TRANSPORTATION SERVICES TO MOVE FIRE 200134 6/28/05 1,783.54 CSMFO SAN DIEGO CHAPTER CSMFO LUNCHEON MEETING 6/23/05-6 PERSC201950 6/23/05 150.00 JOHN BURNHAM INSURANCE SVCS COMMRCL AUTO LIABILITY 6/30/05-6/30/06 201951 6/27/05 49,660.75 3T EQUIPMENT COMPANY, INC. OMNI III PAN & TILT HEAD CAMERA, NTSC, 201952 6/28/05 20,634.13 NCFD DEDICATION CEREMONY 6/20/05 201953 6/28/05 76.88 TEMP SRVCS MARY JO REBELEZ W/E 5/27/05 201954 6/28/05 1,480.00 TEMP SRVCS MARY JO REBELEZ W/E 6/10/05 201955 6/28/05 1,480.00 TEMP SRVCS MARYJO REBELEZ W/E 06/27/05 201956 6/28/05 1,480.00 TEMP SRVCS MARY JO REBELEZ W/E 6/03/05 201957 6/28/05 1,184.00 REIMB SUPLS/DUP KEYS 201958 6/28/05 73.88 REIMB/TEEN EXTREME PROGRAM/ACEDO IR 201959 6/28/05 24.00 ALEXANDER'S REV #31 201960 6/28/O5 39.37 ALPHA PROJECT FOR THE HOMELESS MAY 21201961 6/28/05 6,994.49 SUSPECT BLOOD WITHDRAWALS, URINE TEE201962 6/28/05 1,215.00 HID SECURITY ACCESS RESET SYSTEM/TRA1.201963 6/28/05 125.00 REFRIGERATORS FOR LIBRARY 201964 6/28/05 4,746.39 BOA CR CARD CHRGS#2805 201965 6/28/05 775.00 LIABILITY CLAIM COSTS 201966 6/28/05 5,934.75 1 YEAR BICYCLE MAINTENANCE FOR 5 201967 6/28/05 175.00 MOP 64096 - SAFETY BOOTS - JASMUND 201968 6/28/05 29.10 APRIL 2005 SRVCS-LAS PALMAS PARK RESTR201969 6/28/05 2,068.42 REQUEST FOR REPORT 6/25/05 ACCIDENT 201970 6/28/05 20.00 NCFD DEDICATION CEREMONY 6/21/05 201971 6/28/05 57.10 1 City of National City WARRANT REGISTER # 51 6/28/05 Payee Description chk no chk date amount CARRIER JOHNSON APRIL 2005 SRVCS-NC MISC FF&E DESIGN 201972 6/28/05 8,297.32 CASTILLO REFUND/CHANGE # OF AMPS TO 100 AMP SE1201973 6/28/05 36.40 CITY OF SOLANA BEACH LEAGUE OF CA CITIES-ROSALIE ZARATE 201974 6/28/05 50.00 CITY OF SOLANA BEACH LEAGUE OF CA CITIES-RON MORRISON 201975 6/28/05 50.00 CONDON EMPLOYEE REIMB-PARKING FOR MEETINGS 201976 6/28/05 60.96 CONDON EMPLOYEE REIMBURSEMENTS -PARKING 201977 6/28/05 15.75 CONRAD AND ASSOCIATES, LLP ANNUAL AUDIT EXAM OF CNC Y/E JUN 2004 201978 6/28/05 6,000.00 COPY WORLD COPY OF AGENDA 201979 6/28/05 386.26 CORPORATE EXPRESS STEP STOOLS, CRAMER/CRA100101, 201980 6/28/05 675.54 CORPORATE EXPRESS CASH BOX, SECURITY/INDEX/BINDER 201981 6/28/05 213.09 CURTIS ALLAN FLOORCOVERING CPT-1: EXISTING CARPET TO BE REPLACED 201982 6/28/05 3,651.00 DATA TICKET INC DAILY PARKING PROCESSING MARCH 2005 201983 6/28/05 2,748.87 DATA TICKET INC DAILY PARKING PROCESSING APRIL 2005 201984 6/28/05 2,131.50 DELL MARKETING CORP DELL POWERVAULT220S, SCSI STORAGE 201985 6/28/05 17,763.75 DEPARTMENT OF JUSTICE FINGERPRINTING CHARGES FOR NEW CITY 201986 6/28/05 352.00 DIXIELINE LUMBER CO. MOP 45707 - CARGO PAD 201987 6/28/05 265.24 DOKKEN ENGINEERING MAY 2005 SRVCS-PLAZA BLVD WIDENING 201988 6/28/05 2,819.75 DURRA INK FLYERS FOR THE PUBLIC FORUM - PUBLIC 201989 6/28/05 517.20 ENVIRONMENTAL BUSINESS DEC 2004 SRVCS-1200 NATL CITY BLVD 201990 6/28/05 4,364.45 ENVIRONMENTAL HAZARDS SERV INV#0575,0577,0576,4085LEAD WIPE SAMPLES201991 6/28/05 180.00 FAST SIGNS NNCFD DEDICATION CEREMONY 6/16/05 201992 6/28/05 251.06 FEDEX FEDEX CHRGS-LEAD SAMPLES 201993 6/28/05 97.77 FEDEX FEDEX POLICE TESTING MATERIAL 201994 6/28/05 24.45 FISHER SCIENTIFIC COMPANY INSECT REPELLENT 201995 6/28/05 385.12 FON-JON KENNELS KENNEL FOR POLICE K9'S WHILE OFFICERS 201996 6/28/05 93.00 GATEWAY 2000 GATEWAY COMPUTERS, PROFILE 5.5 QS, MS 201997 6/28/05 14,950.80 GRAINGER MOP 65179 REMOVER GRAFFITI/GLOVES 201998 6/28/05 203.18 2 Payee HANSON AGGREGATES PACIFIC HERNANDEZ HIGGS, FLETCHER & MACK LLP HINDERLITER DE LLAMAS & ASSO HINDERLITER DE LLAMAS & ASSO HINDERLITER DE LLAMAS & ASSO HINOJOSA HMS CONSTRUCTION HYDRO-SCAPE PRODUCTS INC. HdL COREN & CONE IAFC MEMBERSHIP INTERNATIONAL CREDIT RECOVER KC SAFE L.N. CURTIS & SONS LASER SAVER INC LIBERTY ART WORKS, INC. LIEBERT CASSIDY WIIITMORE LIMFT DECO LOPEZ M.W. STEELE GROUP, INC. MAAC PROJECT MAIN ST. ANIMAL HOSPITAL MAINTEX, INC. MASTER FORMULA MORE DIRECT MOTOR INFORMATION SYSTEMS VATIONAL CITY CAR WASH City of National City WARRANT REGISTER # 51 6/28/05 Description CLASS II BASE 3/4 LIABILITY CLAIM COSTS MAY 2005 TAX CONSULTATION— chk no 201999 202000 202001 CON 1 RACT SRVCS FOR 4TH QRTR SALES TA1202002 CONTRACT SRVCS FOR 2ND QRTR SALES TA; 202003 CONTRACT SRVCS FOR 1ST QRTR SALES TA) 202004 T&A 00849 PROJ LOC 3343 NEWBERRY 202005 MAY 2005 SRVCS-TRAFFIC SIGNAL (2i CALMC202006 MOP 45720 - IRRIGATION TOOL 202007 CONTRACT SRVCS PROP TAX APR - JUN 2005 202008 2 REGISTRATIONS "FIRE RESCUE INTL" 202009 SAFETY ALERT FOR SUPERVISORS 60 KEY CABINET 202010 202011 FIREFIGHTER PANTS - MENS, REGULAR CUT, 202012 MOP 45725-MICR TONER NCFD DEDICATION CEREMONY 6/21/05 RETAINER AGREEMENT MAY 2005 SRVCS RENDERED FOR 4/01/05 TO 4/30/05 TRANSLATION SRVCS APR 19, 2005 202013 202014 202015 202016 202017 FACILITATION SRVCS-DEVELOPER ROUNDTi202018 MAAC CONTRACT FOR LEAD HAZARD CONT1202019 VET CARE FOR POLICE K9 DOGS. INCLUDES 202020 MODEL 5815 SANITARE VACUUM 15" UPRIGB202021 METAL GLOSS. 202022 SHARP XEA302 FLAT PANEL CASH REGISTER 202023 ANNUAL ALLDATA SYSTEM RENEWAL - 295 202024 CAR WASHES FOR FLEET APR 2005 202025 chk date amount 6/28/05 1,134.12 6/28/05 463.27 6/28/05 292.86 6/28/05 5,353.56 6/28/05 2,816.95 6/28/05 2,498.55 6/28/05 2,000.00 6/28/05 4,653.00 6/28/05 600.20 6/28/05 2,400.00 6/28/05 1,050.00 6/28/05 177.00 6/28/05 71.20 6/28/05 3,304.70 6/28/05 102.31 6/28/05 40.00 6/28/05 1,300.00 6/28/05 975.00 6/28/05 100.00 6/28/05 2,600.00 6/28/05 35,896.00 6/28/05 60.47 6/28/05 3,869.47 6/28/05 131.00 6/28/05 3,705.52 6/28/05 1,500.00 6/28/05 344.00 3 City of National City WARRANT REGISTER # 51 6/28/05 Payee NC SENIOR NUTRITION PROGRAMS NEXUS IS, INC. PBS&J PBS&J PERVO TRAFFIC CENTER PORAC LEGAL DEFENSE FUND PRUDENTIAL OVERALL SUPPLY PUBLIC EMP RETIREMENT SYSTEM ROBNETTS UPHOLSTERY S & S RECREATION WORLDWIDE SAN DIEGO FITNESS EQUIPMENT SASI SDMSE-SAN DIEGO PROJ HEARTBEI SERWIN SHRED -IT SIRCHIE FINGERPRINT LAB, INC. SOUTHWESTERN COLLEGE SPECIALTY LIGHTING STATE COMPENSATION INS FUND TEAM REPROGRAPHICS THE DIGITAL DISCOUNT THOMPSON PUBLISHING GROUP, I U.S. HEALTHWORKS UCMC: UNIV. COMMUNITY MEDICA VALLEY INDUSTRIAL SPECIALTIES VISTA PAINT WILKINS Description chk no CATERING 04/14/05-COMMU/POLICE RELATIC202026 VOICEMAIL SOFTWARE AND EQUIPMENT, A1202027 PROVIDE ON -GOING SEWER BILL/TAX ROLL 202028 PROVIDE ON -GOING SEWER BILL/TAX ROLL 202029 MOP 63846 - PAINT LEGAL DEFENSE FUND FOR RESERVE MOP 45742 - UNIFORM PARKS SERVICE PERIOD 06-05-4 202030 202031 202032 202033 REUPHOLSTER FURNITURE IN THE LOBBY A' 202034 MISC RECREATION SUPPLIES, IE PLASTIC LABOR ON 06/01/05 TO REPLACE CRANK 202035 202036 FLEXIBLE SPENDNG/PREM ONLY MAY-JUN'0'202037 EXPERT & CONSULTANT SERVICES 202038 REFUND CITATION#NC250228008 2ND LEVEL 202039 SHREDDING OF DOCUMENTS FOR BUILDING 202040 LAB SUPPLIES INTERN MARIA TORRES 5/09/05- 6/05/05 LIGHT BULBS EXPERT & CONSULTANT SERVICES COPIES -LIBRARY PLANS DISC -GO -POD FAIR LABOR HANDBOOK 202041 202042 202043 202044 202045 202046 202047 MEDICAL SERVICES PRE -EMPLOYMENT PHY 202048 SEXUAL ASSAULT (SART) EXAMS AS NEEDEI202049 PLUMBING SUPPLIES GUN SILVER PLUS W/RAC 5 202050 202051 REIMB-RETIREMENT FOR CAPT HOLLOWAY 202052 chk date amount 6/28/05 107.00 6/28/05 18,684.02 6/28/05 12,412.50 6/28/05 2,220.00 6/28/05 498.02 6/28/05 84.00 6/28/05 212.99 6/28/05 62,823.66 6/28/05 1,820.00 6/28/05 924.81 6/28/05 141.67 6/28/05 511.50 6/28/05 270.00 6/28/05 60.00 6/28/05 1,233.50 6/28/05 856.13 6/28/05 122.95 6/28/05 172.40 6/28/05 6,608.95 6/28/05 825.47 6/28/05 390.00 6/28/05 373.50 6/28/05 95.00 6/28/05 525.00 6/28/05 148.50 6/28/05 348.49 6/28/05 79.90 4 City of National City WARRANT REGISTER # 51 6/28/05 Payee WOOD & WOOD Description chk no chk date amount LIABILITY CLAIM COSTS FRISBIE V C OF N c 202053 6/28/05 5,831.45 WOOD & WOOD LIABILITY CLAIM COSTS/FLORES AL V J C P 202054 6/28/05 1,651.00 WOOD & WOOD LIABILITY CLAIM COSTS/AHLES V OFFICER 202055 6/28/05 1,027.00 WURBS JEAN PACE-ACCOMODATIONS 6/22/05 202056 6/28/05 1,672.00 WURBS REIMB LIN WURBS FOR MMASC CONFERENC202057 6/28/05 270.00 WURBS TRAVEL EXP REIMB FOR LIN WURBS ACM 202058 6/28/05 60.52 XYLEM DESIGN INC. DURAMAX FLIP CHART 202059 6/28/05 714.00 YOUNG REIMB SPORTS EQUIPT FOR TEEN PROGRAM 202060 6/28/05 528.03 YOUNG REIMB FOR 2 TV SETS TEEN EXTREME 202061 6/28/05 474.08 YOUNG REIMB MISC. FOOD AND SPORT SUPLS 202062 6/28/05 405.41 YOUNG REIMB SUPLS FOR TEEN EXTREME PROG, 202063 6/28/05 204.71 YOUNG REIMB T.HAWK'S BOOM HUCKJAM/TEEN EX'1202064 6/28/05 168.00 YOUNG REIMB MISC SUPLS FOR TEEN EXTREME 202065 6/28/05 147.49 ZUMAR INDUSTRIES STENCIL 12X10 CROSSBAR IMAGE 202066 6/28/05 499.42 ZUMAR INDUSTRIES STOP BAR 202067 6/28/05 449.21 AIRGAS WEST HELIUM BALLON TANKS 202068 6/28/05 497.76 AVAYA, INC PHONE SERVICE AGREEMENT 202069 6/28/05 39.29 BAYSHORE TRANSIT MGMT INC PAYROLL CK DTD 06/17/05 202070 6/28/05 45,935.22 CINTAS CORPORATION #694 MAINT LAUNDRY SERVICE 202071 6/28/05 215.68 COLORALL TECHNOLOGIES BUS REPAIRS AS NEEDED FOR FY0405 202072 6/28/05 575.00 CORPORATE EXPRESS OFFICE SUPPLIES 202073 6/28/05 63.63 COUNTY OF SAN DIEGO PAYROLL PPE 06/20/05 - JOSE VAZQUEZ 202074 6/28/05 50.00 COUNTY OF SAN DIEGO PAYROLL PPE 06/11/05 - SHERRY LOGEL 202075 6/28/05 23.04 DIRECT TV DIRECT TV 202076 6/28/05 74.98 EW TRUCK & EQUIPMENT CO INC AUTOMOTIVE PARTS AS NEEDED FOR FY040:202077 6/28/05 133.05 KIRK'S RADIATOR & AUTO AIR INC BUS PARTS AS NEEDED 202078 6/28/05 1,281.13 ',ASER SAVER INC INKJET BLACK/COLOR 202079 6/28/05 180.70 5 City of National City WARRANT REGISTER # 51 6/28/05 Pavee Description chk no chk date amount MCDONALD TRANSIT ASSOCIATES MANAGEMENT FEE - JUNE '05 202080 6/28/05 12,285.00 NATIONAL CITY PUBLIC LIBRARY LIBRARY PPE 06/11//O5 202081 6/28/05 29.85 NC HISTORICAL SOCIETY ADVERSTISING 202082 6/28/05 400.00 NEXTEL COMMUNICATIONS PHONE CHARGES 202083 6/28/05 630.10 PRINCIPAL FINANCIAL GROUP 401K PPE 06/11/05 202084 6/28/05 1,423.89 RON TURLEY ASSOCIATES, INC ANNUAL MAINT AGREEMENT 202085 6/28/05 700.00 SAN DIEGO BUS DRIVERS UNION UNION DUES - JUNE. '05 202086 6/28/05 1,208.50 SAN DIEGO COUNTY SHERIFF PAYROLL PPE 06/11/05 - CHRISTINAL ROMAS 202087 6/28/05 50.00 SOUTH COAST MEDICAL CLINIC DRIVING PHYSICAL 202088 6/28/05 36.00 THE LIGHTHOUSE AUTO PARTS 202089 6/28/05 68.21 Total $ 448,401.54 Workers compensation checks 10145 6/22/05 116.85 10146 6/22/05 85.58 10147 6/22/05 107.86 10148 6/22/05 435.15 10149 6/22/05 2,832.73 10150 6/22/05 1,243.02 10151 6/22/05 47.60 10152 6/22/05 47.60 10153 6/22/05 80.26 10154 6/22/05 185.09 10155 6/22/05 175.32 10156 6/22/05 118.97 10157 6/22/05 120.99 10158 6/22/05 555.00 10159 6/22/05 646.18 6 City of National City WARRANT REGISTER # 51 6/28/05 Payee Description chk no chk date amount 10160 6/22/05 400.00 10161 6/22/05 1,140.12 10162 6/22/05 370.00 10163 6/22/05 32.30 Total $ 8,740.62 Grand Total 457,142.16 TRANSIT WARRANTS CK#202068-202089 22 CHECKS $ 65,901.03 PAID OUT OF HUD GUARANTEED LOAN FUND ACCT FOR THE CONSTRUCTION OF THE NEW FIRE STATION. CK#200131-200134 4 CHECKS $ 13,401.33 7 City of National City WARRANT REGISTER #51 6/28/05 001 GENERAL FUND 91,265.43 105 PARKS MAINTENANCE FUND 648.00 109 GAS TAXES FUND 4,653.00 111 P.O.S.T. FUND 775.00 125 SEWER SERVICE FUND 35,296.71 126 FIRE DEPT ACTIVITIES FUND 425.04 172 TRASH RATE STABILIZATION FUND 6,994.49 189 CIVIC CENTER REFURBISHING 3,651.00 196 CAPITAL PROJECT RESERVE 4,364.45 241 NATIONAL CITY LIBRARY STATE GRANT 20,829.60 242 N. CITY LIBRARY MATCHING FUND 11,215.94 250 NEW FIRE STATION CONSTRUCTION 13,401.33 253 RECREATIONAL ACTIVITIES FUND 70.45 254 LEAD -BASED PAINT HAZARD REDUCTION GRANT 36,154.88 271 JOBS HOUSING BALANCE GRANT 2,068.42 301 GRANT-C.D.B.G. 1,955.15 302 CDC PAYMENTS 1,200.00 307 PROPOSITION A" FUND 2,819.75 552 TDA 115,561.78 626 FACILITIES MAINT FUND 5,410.94 627 LIABILITY INS. FUND 30,527.04 628 GENERAL SERVICES FUND 1,452.97 629 INFORMATION SYSTEMS MAINTENANC 7,656.89 630 OFFICE EQUIPMENT DEPRECIATION 11,606.86 631 TELECOMMUNICATIONS REVOLVING 18,684.02 632 GENERAL ACCOUNTING SERVICES 26,037.55 643 MOTOR VEHICLE SVC FUND 415.47 726 ENGINEERING/PUBLIC WORKS T & A DEPOSITS 2,000.00 TOTAL 457,142.16 Certification IN ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE HEREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS AND DEMANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. FINANCE DIRECTCITY MANAGER FINANCE COMMITTEE NICK INZUNZA, MAYOR -CHAIRMAN RONALD J. MORRISON, MEMBER FRANK PARRA, MEMBER LUIS NATIVIDAD, MEMBER ROSALIE ZARATE, MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER IS AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY THE CITY COUNCIL ON THE 19TH DAY OF JULY 2005. AYES NAYS ABSENT MEETING DATE July 19, 2005 City of National City9 Cali}arnia COUNCIL AGENDA STATEMENT 21 AGENDA ITEM NO. ITEM TITLE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADDING CHAPTER 10.58 TO THE NATIONAL CITY MUNICIPAL CODE TO REGULATE BUSINESS LICENSES FOR "DEFERRED DEPOSIT TRANSACTION BUSINESSES", ALSO KNOW AS "PAYDAY LENDERS", AND REPEALING ORDINANCE NO. 2004-2254 PREPARED BY EXPLANATION Rudolf Hradecky Ext. 4222 or DEPARTMENT City Attorney See attached Staff Report which proposes consumer protection regulations under a new chapter 10.58 to replace the existing moratorium against new payday lending businesses. If adopted, the proposed ordinance will apply to existing payday lenders thirty days after the chapter becomes effective. The Ordinance also repeals the existing moratorium Environmental Review (Financial Statement N/A NIA Account No. F'F FISCO74 MENDATION Adopt ordinance. BORD1-CO FI COMMEaNDATiOAI N/A ATTACHMENTS Listed Below Resolution No. Staff Report Proposed Ordinance A-200 (9/80) follows: ORDINANCE NO. 2005 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADDING CHAPTER 10.58 TO THE NATIONAL CITY MUNICIPAL CODE TO REGULATE BUSINESS LICENSES FOR "DEFERRED DEPOSIT TRANSACTION BUSINESSES", ALSO KNOW AS "PAYDAY LENDERS", AND REPEALING ORDINANCE NO. 2004-2254 BE IT ORDAINED by the City Council of the City of National City as Section 1. That Title 10 of the National City Municipal Code is hereby amended by adding Chapter 10.58 to read as follows: Chapter 10.58 ADVANCE PAYDAY LOAN BUSINESSES AND TRANSACTIONS Sections: 10.58.010 Findings and purpose 10.58.020 Definitions 10.58.030 Applicability 10.58.040 Operating and licensing restrictions 10.58.050 Regulations governing the prominent posting of signs 10.58.060 Standards of operation 10.58.070 Payday lender's duty to inquire about military status and existing payday loan status 10.58.080 Particular regulatory provisions applicable to members of the Armed Forces on active duty and their spouses or domestic partners 10.58.090 Transaction provisions 10.58.100 Enforcement and regulatory provisions 10.58.110 Severability 10.58.010 Findings and purpose. A. Under the provisions of state law, loan businesses meeting the definition of deferred deposit transaction businesses (also commonly known as "payday lenders" or "advanced payday lenders") are required to be licensed under Financial Code Section 23000, et seq. Registered businesses are thereby exempted from state usury laws and allowed to charge fees for loans advanced against the later receipt of a payroll check by the borrower. The fees that may be charged for these short term loans can constitute an annual percentage rate (APR) ranging from 797% APR for a 7 day transaction to 180% APR for a 30 day transaction. B. State law limits the maximum term of each transaction to a 31 day period, and prohibits two or more transactions to be entered into concurrently by an individual borrower at any particular payday lender. State law does not limit or regulate the 2005 Ordinance 1 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders number of transactions that may concurrently be made by members of the same household, the minimum period of time before which a lender may require a borrower to repay the loan, or require a lender to ascertain the military status or current payday loan status of a borrower. C. Deferred deposit transaction businesses shall hereafter be referred to in this chapter as "payday loan" businesses, and the practice as the "payday lending" practice or business. D. The City Council finds and determines that payday lending has a predatory aspect and an adverse effect particularly upon military personnel, the elderly, the economically disadvantaged and other citizens of the City who become ensnared in payday lending practices. The Council further determines that payday loan businesses can also have an economic blighting effect in communities, thereby adversely impacting the economic growth and vitality of the community, its businesses, the provision of services and consumer needs to the community and resulting tax revenues to the city. E. The City Council finds and declares that it is necessary to further regulate the payday loan business beyond that presently addressed by state law in order to protect the public against the abuses of predatory lending practices. The Council further finds that although payday lending involves relatively small loans and does not encompass loans that involve interstate commerce, certain payday lenders have attempted to use forum selection clauses contained in payday loan documents in order to avoid the courts of the State of California, and that such practices are unconscionable and adversely affect local residents, and are a potentially deceptive business practice. F. The City Council therefore determines that the permissive parameters of state law are not preemptive of local regulation for consumer protection, and it therefore enacts this chapter pursuant to the city's constitutional police power to protect the public against such abuses. 10.58.020 Definitions. As used in this chapter, the following terms have the following meanings: A. "Deferred deposit transaction" means a transaction whereby a person defers depositing a customer's personal check until a specific date, pursuant to a written agreement, as provided in Financial Code Section 23035. B. "Licensee", as defined in Financial Code Section 23001 means any person who offers, originates, or makes a deferred deposit transaction, who arranges a deferred deposit transaction for a deferred deposit originator, who acts as an agent for a deferred deposit originator, or who assists a deferred deposit originator in the origination of a deferred deposit transaction. However, "licensee" does not include a state or federally chartered bank, thrift, savings association, industrial loan company, or credit union. "Licensee" also does not include a retail seller engaged primarily in the business of selling consumer goods, including consumables, to retail buyers and that cash checks for a minimum fee not exceeding two dollars ($2.00) as a service to its customers that is incidental to its main purpose or business. "Licensee" also does not include an employee regularly employed by a licensee at the licensee's place of business. An employee, when acting under the scope of the employee's employment, shall be exempt from any law from which the employee's employer is exempt. 2005 Ordinance 2 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders C. "Person" means an individual, a corporation, a partnership, a limited liability company, a joint venture, an association, a joint stock company, a trust, an unincorporated organization, a government entity, or a political subdivision of a government entity. D. "Operator", when used in this chapter, shall have the same meaning as the term "licensee" defined above. E. "Deferred deposit originator" means a person who offers, originates, or makes a deferred deposit transaction. It does not include an "applicant" or "customer'. F. "Payday lender" means any person who meets the definition of "licensee" or "deferred deposit originator" above. G. "Applicant" or "customer" shall refer to a person who applies for or takes out a "payday loan". H. "Domestic Partner" is defined in California Family Code Section 297. 10.58.030 Applicability. A. Except as provided in subsection C, this chapter applies to any business or any business transaction in the city that would subject a business to registration with the California Department of Corporations as a "deferred deposit transaction business" under Financial Code Section 23005, irrespective of whether or not the business is so registered. B. Deferred deposit transaction businesses shall be referred to in this chapter as "payday loan" or "payday lender" businesses, and the practice or transaction of making a payday loan as "payday lending". C. This chapter shall not apply to: (1) any transaction, fee or penalty for a dishonored check previously presented for payment; (2) any business that accepts or cashes personal or payroll checks in payment for consumer goods or services customarily provided by the business, either at face value without discount or for a nominal check cashing fee that does not exceed two dollars ($2.00) per check; (3) any business transaction in which checks or money orders are sold to a customer for a fee; or, (4) any business that is statutorily exempted by state or federal law from local regulation. D. Except when a section or subsection in this chapter is made specifically applicable to an operator, the requirements of the section or subsection shall be applicable to each operator, owner or employee of a payday loan business or payday lender. The principal of the business shall be administratively and civilly liable for the errors and omissions of its agents and employees. 10.58.040 Operating and licensing restrictions. A. Each payday lending business operating within the city shall be licensed, operated and conducted as a separate business unit and entity pursuant to and under Chapter 6.04. No payday lending business may be operated or conducted as a unit of another business unless it is licensed and regulated as provided in this chapter. B. This section shall not bar a payday lending business from leasing out commercial space within a commercially zoned building, or from leasing part of the premises of another business in order to conduct its own payday lending on that premises, provided however that all other applicable restrictions of this Chapter 10.58 governing the physical appearance and operation of the premises are satisfied, including those in Section 10.58.050. 2005 Ordinance 3 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders C. On and after the effective date of this Chapter, no more than ten (10) payday lending businesses may operate within the city, and the number of business licenses issued to payday lending businesses shall be limited to ten (10). Except within any redevelopment project area, existing business licenses may be renewed or transferred or reissued upon a change of ownership or location. Within any redevelopment project area, existing business licenses may be renewed, but shall not be reissued or transferred due to a change in ownership, location, or upon cessation of business. D. This section is regulatory. 10.58.050 Re ulations overnin the rominent ostin of si ns. It is unlawful to fail to post a sign required by this chapter, or to post a required sign that does not comply with the requirements of this chapter. A. Signs required by this chapter or the Financial Code to be posted shall be approved by the city enforcement official as to compliance with this chapter prior to installation. Posted signs shall be subject to inspection for continued compliance with this chapter by city enforcement officials during business hours. B. Required signs shall be prominently displayed on the interior of the premises and be completely visible and readable to customers at all times. Lettering on required signs shall be clear, legible and in letters of not less than one-half inch in height. C. Violation of this section by an operator or employee is a misdemeanor. 10.58.060 Standards of operation. Payday lenders conducting payday lending businesses within the city shall observe the following operating regulations at all times as a condition of doing business and maintaining a business license within this jurisdiction: A. The toll free number of the Department of Corporations hot-line shall be prominently posted on the premises; B. Signage required by Financial Code Section 23035(d) shall be prominently posted on the premises. The schedule of fees required to be posted shall also include an Annual Percentage Rate (APR) based on the fee charged per $100 dollars. For example, a $15.00 fee per $100.00 advanced represents a true interest rate of 797% APR for a 7 day transaction, 398 % APR for a 14 day transaction, and 180% APR for a 30 day transaction. C. Transaction agreements in this jurisdiction that provide for a forum other than the County of San Diego, State of California for the adjudication of collection matters shall be considered an unconscionable provision for regulatory licensing purposes. D. The city manager or designee shall be provided with a copy of all specimen transaction forms that customers are required to complete, or that operators are required to furnish to customer. E. Each operator shall furnish the city manager or finance director as designate a copy of the report that is required to be filed annually with the Commissioner of Corporations pursuant to Financial Code Section 23026. The report furnished to the city manager or designee shall be subject to and be retained in accordance with the confidentiality requirements of state law, but shall be available for use in connection with enforcement proceedings. 2005 Ordinance 4 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders F. An operator is prohibited from entering into a concurrent loan transaction with the spouse or domestic partner of any person who is an existing loan customer of any other payday lending business within the county of San Diego. The operator or each employee or agent shall make diligent inquiry of each applicant for a payday loan pursuant to Section 10.58.070 to ascertain the status of an existing loan by that household member. G. An operator is prohibited from rolling over an existing payday loan transaction into a new payday loan and charging new fees in order to discharge the obligation of an existing payday loan. No operator shall enter into a new payday loan transaction with the same applicant or customer for a period of thirty days following termination of an existing transaction. An operator may however extend the times for repayment of an existing loan transaction beyond the initial 31 day period, provided no additional fees are charged and no new or additional requirements are imposed upon that customer or penalties. H. An operator or employee is prohibited from transacting a payday loan with an intoxicated person or any other person who lacks the capacity to contract. I. In addition to the penalties prescribed by state law, violation of the provisions of Financial Code Section 23036 and other provisions of law governing "licensees" shall also be grounds for the denial, revocation or suspension of any city business license applicable to the particular payday lender. J. This section is regulatory only. 10.58.070 Payday lender's duty to inquire about military status and existing payday loan status. A. Before executing a payday loan transaction, a payday lender shall inquire of each applicant for each payday loan by that applicant whether he or she: 1) is a member of the armed forces on active duty or a spouse or domestic partner of the same; and 2) is the spouse or domestic partner of a person who has an existing payday loan transaction in current effect with any payday loan business in San Diego County. It is unlawful for any operator or employee of a payday loan business to fail to make the inquiry required by this subsection of each applicant for a payday loan each time an applicant makes such application. B. If the customer answers in the affirmative that he or she is a member of the armed forces on active duty or a spouse or domestic partner of the same, the lender shall advise the borrower of the provisions of Section 10.58.090, and shall provide a written form to the borrower that acknowledges the terms of that section. The payday lender shall keep a copy on file for inspection by the city for twelve (12) months after the transaction is completed. This subsection is regulatory only. C. If the customer answers in the affirmative that he or she is the spouse or domestic partner of a person who has an existing payday loan transaction in current effect with any payday loan business in San Diego County, the lender is prohibited from executing a payday loan transaction with that customer until the existing payday loan transaction is terminated by payment in full. This subsection is regulatory only. D. Payday lenders shall post a sign prominently on the premises that advises customers of this requirement. E. Violation of subsection A or D by an operator or employee is a misdemeanor. 2005 Ordinance 5 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders 10.58.080 Particular regulatory provisions applicable to members of the Armed Forces on active duty and their spouses or domestic partners. A. When a customer or applicant answers affirmatively that he or she is a member or a spouse or domestic partner of a member of the military services of the United States, the duties and obligations listed in this section shall apply to any payday lender who enters into a transaction with that person. 1. The lender is prohibited from garnishment of any military wages or salaries; 2. The lender shall not conduct any collection activity against a military customer or his or her spouse or domestic partner when the military member has been deployed to a combat or hostile fire zone for the duration of the deployment; 3. The lender shall not contact the commanding officer of a military customer in an effort to collect on a loan to the military member or his or her spouse or domestic partner; 4. The lender shall be bound by the terms of any repayment agreement that it negotiates through military counselors or third -party credit counselors; and 5. The lender agrees to honor any statement or proclamation by a military base commander that a specific payday lender branch location has been declared off limits to military personnel and their spouses or domestic partners. B. If the customer is a member, spouse or domestic partner of a member of the military services of the United States, the following disclosures shall be made in writing by the payday lender, be signed by the customer and a signed copy be furnished to the customer: 1. That the lender is prohibited from garnishment of any military wages or salaries; 2. That the lender is prohibited from conducting any collection activity against a military customer or his or her spouse or domestic partner when the military member has been deployed to a combat or combat support posting for the duration of the deployment; 3. That the lender is prohibited from contacting the commanding officer of a military customer in an effort to collect on a loan to the military member or his or her spouse or domestic partner; 4. That the lender agrees to be bound by the terms of any repayment agreement that it negotiates through military counselors or third -party credit counselors; and 5. That the lender agrees to honor any statement or proclamation by a military base commander that a specific payday lending branch location has been declared off limits to military personnel and their spouses or domestic partners. C. This section is regulatory. 10.58.090 Transition provisions. The provisions of this chapter shall apply to all payday lenders that are currently licensed or are required to be licensed in accordance with this chapter and Chapter 6.04 thirty days after the effective date of this chapter. 2005 Ordinance 6 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders 10.58.100 Enforcement and regulatory provisions. A. Except as provided in subsection B, it is unlawful to violate any of the mandatory provisions or the prohibitions of this chapter. Each violation shall be prosecuted as a misdemeanor, with a penalty of $1,000 fine or imprisonment not to exceed six months, or both. Each day that a violation continues to exist shall constitute a separate misdemeanor. Violations under the provisions of this subsection may also result in administrative or civil action, or both. B. Violation of any section or subsection that is designated as regulatory shall only be grounds for administrative or civil action, or both, and shall constitute grounds for the suspension or revocation of a business license pursuant to and in accordance with Section 6.04.170 of this code. Each principal and operator of a payday lending business shall be administratively and civilly liable and responsible for the acts or omissions by an agent or employee of that business. Administrative review procedures shall be as set forth in Section 6.04.160. C. The maintenance of a payday lending business in violation of this chapter shall constitute a public nuisance, the penalty for which may include the abatement of the premises, in addition to any civil, criminal and administrative penalties or remedies that may be imposed. D. Supervision, inspection and enforcement of the provisions of this chapter shall be under the jurisdiction of the city manager, and the finance director by delegation. E. The city attorney shall be responsible for initiating and maintaining criminal, civil and administrative actions, and any combination, pertaining to prosecution and abatement of violations under this chapter. 10.58.110 Severability. If any provision of this chapter or its application is found by a court of competent jurisdiction in the United States to be invalid or superseded by state or federal law, then the remaining provisions of this chapter shall not be affected, and shall remain in full force and effect until amended or repealed by Council action. Section 2. That upon the effective date of this ordinance, Ordinance No. 2004-2254 is repealed. PASSED and ADOPTED this day of 2005. Nick Inzunza, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Delia George H. Eiser, III City Clerk City Attorney 2005 Ordinance 7 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders STAFF REPORT TO ACCOMPANY PROPOSED ORDINANCE ADDING CHAPTER 10.58 TO THE NATIONAL CITY MUNICIPAL CODE TO REGULATE BUSINESS LICENSES FOR "DEFERRED DEPOSIT TRANSACTION BUSINESSES", ALSO KNOW AS "PAYDAY LENDERS", AND REPEALING ORDINANCE NO. 2004-2254 EXECUTIVE SUMMARY On December 2, 2003, the City Council adopted an urgency interim ordinance enacting a moratorium for 45 days on the establishment of new check cashing businesses and payday advance businesses in National City,1 and directed staff to review alternatives with the Planning Commission. The moratorium was extended on January 6, 2004, and again on November 16, 2004, for one additional year. Staff now recommends that an ordinance be adopted to regulate such businesses under consumer protection measures within Title 10 of the Municipal Code, rather than as a land use regulation under Title 18. The proposed ordinance will add a new Chapter 10.58 to regulate "payday lenders" and require certain consumer protection standards to be observed. Business licenses would be limited under these regulations to the ten already in existence, and additional limitations will be placed within any redevelopment project area. PUBLIC AND COMMITTEE COMMENTS Copies of the proposed ordinance have been circulated to the U.S. Navy, and certain consumer protection organizations. The ten (10) existing payday lenders within the city have been notified of this proposal. DISCUSSION The moratorium prohibiting the approval of new advance payday lending establishments will expire in November of this year, and must be addressed through adoption of a land use or regulatory type ordinance prior to its expiration. This ordinance proposes that a regulatory measure rather than a land use measure be adopted by the Council. There are currently ten (10) payday lenders in National City. During the time period in which the moratorium was in effect, the Council allowed one to relocate to a new site, and a second to begin business due to its substantial investment incurred prior to the moratorium. Most land use regulations that have been considered in other jurisdictions concerning payday lenders have involved issuance of a CUP for new businesses. CUP's generally have limited effect on existing businesses, and do not limit the number that may exist in a permissible zone. Distance separations for new businesses under CUP's can be difficult to justify or administer. Zoning basically does little to address the root problem associated with payday lending, which is principally consumer protection, due to the The technical term for "payday lenders" is "Deferred Deposit Transaction Businesses", which are regulated under Finance Code Sections 23000 to 23106. Such businesses are allowed to advance money against a post dated check for a fee, which fee may not exceed 15% of the face amount of the check. The face amount of the check is limited to a maximum of $300. As will be noted later, these fees can constitute an APR ranging from 180% to 797%, depending on the length of the transaction for repayment of the face amount of the check. predatory and economic blighting effects of that industry. Furthermore, land use regulation is problematical with businesses that present a relatively low impact, land use wise, upon commercial neighborhoods.2 What is more important and has the greater impact is the effect that payday lenders have upon the economic well-being of a community. It is this latter aspect that may prove to be seminal to approaching a solution to the Council's concerns. A number of jurisdictions have enacted legislation which addresses the predatory aspects of payday lending. In California, the legislature granted such businesses an exemption from state usury laws (which are typically 7% — 10%), and has allowed them to charge a fee not to exceed 15% of the face value of a post-dated check, in return for a cash advance. Typically, the cash advance subtracts the fee and the check is held for up to 31 days, to be redeemed by payment at face value. If the check is dishonored, a bad check fee may also be charged. The practice stems from the post dated check being redeemed in connection with the receipt of a paycheck by the borrower. Although the maximum amount that may be loaned is restricted to $300, the fees charged equate to an APR that can range from 797% APR for a 7 day float to 180% for a 30 day float.3 The net effect of these fees, and the high APR, is to place the borrower into a negative cash flow posture, resulting in a further inability to purchase goods and services within the community. It is therefore recommended that signage be required in establishments to supplement state requirements to demonstrate the true APR. Granted, there are other financial products and schemes that adversely impact consumers. Granted also, the payday lending industry points to the services it provides to people whose work hours do not coincide with normal banking hours, or who do not have bank accounts,4 or who need a "quick" loan but lack credit worthiness. However, none of these reasons justify exorbitant APR's or placing lower socio-economic persons into a downward financial spiral, nor address the impact that reduced consumer cash flow has upon the commercial community and erosion of sales tax revenue. The U.S. Navy in San Diego, based on a survey answered by over 2,800 military personnel, concluded that 21 % of responders have used payday lenders,5 and that a significant number have experienced problems. The Department of Defense has taken note of this phenomenon also.6 A number of articles and studies have exposed the predatory aspects of payday lending. These articles also address the impact upon the military community. Attached to this report is an appendix of articles and studies that validate the concerns expressed in this report, and upon which this staff report and proposed ordinance rely. 2 For example, manufacturing establishments create noise, pollution and space and storage issues, unlike retail and service establishments that generate pedestrian and traffic concerns. 3 Each transaction is limited to a maximum of 31 days. No concurrent or rollover .transactions may occur. However, oversight of that aspect is highly problematical, and is subject to abuse. Much of this is anecdotal, although it is common perception that many persons in lower socio-economic status do not use banks, or fear immigration status consequences due to lack of residency or credentials. See Appendix Item 15. s See Appendix Item 2. The reader is invited to an extensive technical list of material prepared by the Consumer Federation of America at Appendix Item 17. 2 It is our view that local regulation is not preempted by the permissive provisions of State law, which would allow room for enacting local rules to restrict certain practices that are not specifically addressed. The proposed ordinance would add a new Chapter 10.58 to the Municipal Code and provide a framework that both complements and implements State law in a way that is relevant to National City, and will implement consumer protection by means of business license regulation. It will include a limit on the numbers of business licenses that may be issued or transferred. These are matters which are normally not addressed through land use regulation. The salient features of the proposed ordinance are as follows: • Requires payday lenders to inquire about military status of borrower, and to advise such patrons about debt collection practices and limitations in writing. • Requires payday lenders to inquire whether borrower or spouse has an existing payday loan with any other payday lender in San Diego County, and prohibits a concurrent loan until the first is paid. • Requires certain signage including true APR's to be prominently posted. (Although this is duplicative of State law in some respects, inclusion of requirements can be grounds for local enforcement through business license processing.) • Limits issuance of business licenses to ten (present), but allows for reissuance upon sale, transfer of ownership or relocation of business within areas of the city other than the redevelopment project area. In redevelopment project areas, existing licenses may only be renewed, but may not be transferred or reissued upon changes in ownership or location, or upon cessation of business. • Clearly identifies which provisions of Chapter 10.58 are unlawful, and which are regulatory; the former can be enforced criminally, civilly and administratively; the latter only civilly and administratively. Violations of either may result in proceedings to suspend or revoke an issued business license. • Includes administrative procedures for data collection and enforcement. • Repeals Ordinance No. 2004 — 2254 3 CONTRIBUTORS TO PROJECT Jim Bleisner, Reinvestment Director, City -County Reinvestment Task Force. Alan Fisher, Executive Director, California Reinvestment Coalition. Jean Ann Fox, Director of Consumer Protection, Consumer Federation of America. LCDR Ronald Johnson, JAGC, USN, Deputy Staff Judge Advocate, CNRSW, San Diego. Roger Post, Planning Director, City of National City. Robert Paz, Deputy Director, Community Development Commission of the City of National City. Rudolf Hradecky, Senior Assistant City Attorney, City of National City. APPENDIX TO STAFF REPORT ACCOMPANYING ORDINANCE ADDING CHAPTER 10.58 TO THE NATIONAL CITY MUNICIPAL CODE TO REGULATE BUSINESS LICENSES FOR "DEFERRED DEPOSIT TRANSACTION BUSINESSES", ALSO KNOWN AS "PAYDAY LENDERS" APPENDIX ITEM TITLE PAGE 1. Monograph, The Financial Divide: An Uneven Playing Field" (March, 1 2005) published by California Reinvestment Coalition. [Subject: Bank Financing of Check Cashers and Payday Lenders in California Communities]. 2. GAO Report (April, 2005) "DOD's Tools for Curbing the Use and 18 Effects of Predatory Lending not Fully Utilized". [GAO pub. 05-0349]. 3. Senate Bill 157 adopted by Georgia General Assembly and enacted 61 into law April 9, 2004, regulating payday lenders in Georgia. 4. Reprint, Fort Worth Star Telegram article (April 12, 2005) regarding 76 Texas legislation on payday lending practices to military personnel. 5. Reprint, San Diego Union Tribune article (March 29, 2005) regarding 77 "asset stripping" in San Diego. 6. Summary, California Deferred Deposit Transaction Law [Financial 79 Code Sections 23000 to 23106]. 7. Reprint, San Diego Union Tribune article (March 9, 2004) regarding 81 the financial dark side of payday lending. 8. Reprint, North County Times article (June 8, 2005) regarding 86 "paycheck -to -paycheck" living feeds payday lending industry. 9. Monograph, Regulation of Payday Lenders in the United States, 90 Patrick Meagher (March 21, 2003), published by the Department of Trade and Industry, South Africa. 10. Article, "Fact Sheet on Payday Loans", published by Consumers 96 Union (November, 1999). 11. Monograph, "Quantifying the Economic Cost of Predatory Payday 100 Lending", Ernst, Farris & King (December 18, 2003), published by Center for Responsible Lending. 12. Reprint, San Diego Union Tribune article (September 16, 2004) 115 regarding the economic blighting effect of payday lenders in communities. 6 13. Reprint, San Diego Union Tribune article (January 8, 2004) regarding 117 payday lending in National City, California. 14. Reprint, San Diego Union Tribune article (September 29, 2004) 119 regarding economic blighting effect of payday lenders. 15. Reprint, forwarded e-mail of May 2, 2005. Subject: Commander, 121 Navy Region Southwest Payday Survey Final Results. 16. E-mail dated February 23, 2005, from Jim Bliesner to R. Hradecky 125 forwarding summary of payday lender regulations from other jurisdictions. 17. Payday Loan Research and Resource List (June 1, 2005), furnished 127 by Consumer Federation of America. 7 The Financial Divide: An Uneven PIaying Field Bank Financing of Check Cashers and Payday Lenders in California Communities California Reinvestment Coalition 000 A The Financial Divide The California Reinvestment Coalition The California Reinvestment Coalition is now a coalition of more than two hundred organizations advocating increased access to bank services, loans and investments for California's low-income communities and communities of color. CRC efforts include research on the financial services industry, technical assistance to local community coalitions, and creation of new financial products for California's culturally and economically diverse communities. Bank CRA commitments negotiated by CRC members add more than $20-30 billion annually in lending, investment and services to California communities. These agreements provide access to financing for affordable housing, consumer and small business loans, investments, grants, branch locations, and deposit accounts. CRC also does action research on banking and financial issues. Its reports include Who Really Gets Home Loans, Helping Small Businesses Grow, and No Credit for Those Who Need It. Writer and Researcher: Alan Fisher California Reinvestment Coalition 474 Valencia Street, Suite 110 San Francisco, California 94103 (415) 864-3980, fax (415) 864-3981 www.calreinvest.org Acknowledgments The California Reinvestment Coalition wishes to acknowledge the assistance of Jean Ann Fox, Matthew Lee, Kevin Byers, Jim Bliesner, Bill Kennedy, Maeve Elise Brown, Robert Buck, Roberto Barragan, Sharon Kinlaw, Josh Stillman, Drew Miazga, Geoff Smith, and many others. In addition, CRC wants to thank the Consumer Federation of America, the Center for Economic Policy Alternatives, the Center for Responsible Lending, the Woodstock Institute for their work on this issue. CRC also appreciates the financial support of the Friedman Foundation, Evelyn and Walter Haas Jr. Fund, McKay Foundation, and others. 000 2 The Financial Divide: An Uneven Playing Field Driving through California towns and cities, the economic division between lower -income and wealthier neighborhoods is reflected in the starkly separate locations of check cashers and payday lenders in lower -income neighborhoods on the one hand and mainstream banks and savings & loans in wealthier neighborhoods on the other. This two-tier consumer finance system has a dramatic negative impact on California's diverse communities. In contrast to outward appearances, the two seemingly -separate financial sectors are, in fact, two faces of a seamless financial web. Check cashers and payday lenders crowd the streets of lower -income neighborhoods seeking to lure consumers through their doors with charming customer service while they dramatically overcharge them. In California communities like West Oakland or Pacoima or National City, banks are scarce and fairly -priced alternatives are few for the residents. Instead there are financial price-gougers: Check cashers that charge two percent or more to cash payroll checks that could be deposited for free into a mainstream checking or savings account. Payday lenders that charge 500 plus annual percent rate (APR) when an expensive credit card charges interest of 20 percent annually or less. This California Reinvestment Coalition study of check cashers and payday lenders in five California counties reveals the growing inequities between these two economies and the role that mainstream bank financing of price gougers has played in their growth as shown by public financial reports and other data. The study's core findings are: Financial institutions have removed their bank branches from most lower -income communities while they profit from financing high-priced and highly profitable check cashers and payday lenders in these same neighborhoods. The lack of retail competition from bank branches in these communities has created this lucrative opportunity for price -gouging check cashers and payday lenders. The Profits of Predatory Lending The lack of bank and savings & loan branches in lower income communities and communities of color has created a price -gouging opportunity for rapidly -expanding check cashers, payday lenders, and finance companies that prey on consumers with few financial alternatives. The lack of competition from mainstream finance and huge profit opportunities have meant that the number of check cashers and payday lenders has increased nationally from 2,000 in 1996 to 22,000 in 2003 and is still growing. The lack of competition means that finance companies pull in hundreds of millions of dollars in revenues while their executives take home million dollar salaries. Dollar Financial Group reports that its profit margin per store is 32.3 percent. The presence of these price gougers has dramatically lessened personal financial opportunities for low-income people whose choices are limited to high cost, low quality financial products that take their scarce financial resources and block their path to asset building. Banks vs. Check Cashers Looking at California communities, the financial divide between traditional and predatory finance can be seen in neighborhood after neighborhood. Page 1 O00 3 The Financial Divide In Los Angeles' San Fernando Valley, Encino and Pacoima exemplify this division. Pacoima has a population (90,000) which is roughly twice the size of Encino (40,700) while average income is skewed in the opposite direction ($40,000 to $91,475 ). Encino has one check casher and twenty-seven bank branches. Pacoima has nine check cashers and two bank branches; one of which. just opened last year. The cities are twelve miles apart. The wealthy City of Piedmont (10,952) is half the size of the nearby neighborhood of West Oakland (19,684) while its household income ($134,270) is more than four times that of West Oakland ($27,545). Piedmont has three bank branches and no check cashers. West Oakland has no bank branches and three check cashers. Thirty-five miles apart on the Pacific Coast in San Diego County, the cities of Carlsbad and National City exhibit similar disparities. Carlsbad's population (78,000) is a little larger than National City's (54,000); its average income ($65,145) is more than twice as high as National City($29,826). Carlsbad has 25 banks and two check cashers compared to National City's five bank branch and twelve check cashers. The Price Paid by Californians This loss of opportunity in lower -income neighborhoods is reflected in individual financial hardships at the local level. An average user of check cashers and payday lenders spends one thousand additional dollars ($1,000) annually more than the cost of mainstream products. But, when the picture broadens to the state level, it exhibits immense and devastating economic disadvantages for the daily lives of lower income Californians; An estimated 5.2 million Californians' use check cashers and are charged at least a two percent fee to cash their checks. Using the California average income of $47,493, this costs Californians $4.9 billion ($4,900,744,729) annually. An estimated 1.5 million' California households use a payday lender 11 times annually' for a $3004 advance at a $45 fee ($15 per $100) each time at a cost of $757 million ($757,291,590) annually. United States General Accounting Office Report to the Subcommittee on Oversight and Investigations, Committee on Financial Services,House of Representatives, September 2002, on Electronic Transfers states that twenty-eight percent of all U.S. adults are unbanked. So, it is estimated that 5,159,439 Californians are unbanked. 2 "As many as 14 million of the 105 million U.S. households used payday lenders in 2003, according to analyst Dennis Telzrow of Stephens Inc., a Little Rock, Arkansas —based investment bank." "Preying on the Poor" by Edward Robinson, Bloomberg Magazine, January 2005. This is 13.3 percent of U.S. households. Applied to California, it is 1,529,882 households. 2001. California: Stop legal loan sharks" Editorial, Los Angeles Times, p.B 10, May 14, 4California Financial Code Section 23035 limits the face value of the check to $300. Page 2 000 4 The Financial Divide This means that at least $5.7 billion comes out of Tower -income Californians' pockets annually just due to the high charges of check cashers and payday lenders. This $5.7 billion does not even include probable further loss of funds due to high charges from refund tax loans, rent -to -own stores, subprime mortgage lenders, pawnbrokers, and others. These billions go to unscrupulous finance companies and are lost to families who are struggling on limited budgets. Studies clearly show that payday lending impacts women and African Americans disproportionately. A broad national surveys of payday borrowers conducted last year identified two of three respondents as women. An Illinois study6 found more than 60 percent of payday borrowers being sued by a major payday lender were women. The Payday Loan Industry Newsletter stated in 2003' that 60 percent of the payday customer base were women. The Center for Community Capital' found that African -American households were almost twice as likely to borrow from a payday lender as white households in North Carolina. The Center and a more recent study' of payday lending in the San Fernando Valley found that payday loan offices favor locations in neighborhoods with majority minority populations. Banks Finance the Predators While most Americans have witnessed this two-tier financial system, the connections between mainstream financial institutions and these usurious lenders are much less obvious. • First, these usurious lenders are filling the void left by conventional financial institutions' retreat from low-income communities and communities of color. • Second, and more covert, is the fact that mainstream banks finance the payday lenders, check cashers, and other "subprime" financial subsidiaries that trap lower income people and people of color in a system of lower -tier finance that costs significantly more than the mainstream products offered by these same financial institutions. • Third, the major financial institutions — Bank of America, Citigroup, Washington Mutual, Wells Fargo Bank and others — have corporate structures that include high-priced consumer finance company subsidiaries. So, they also operate the price -gouging lending directly. 5 "Payday Advance Consumer Satisfaction Survey," by Patricia Cirillo, Cypress Research Group, May 2004. 6 "Greed: An In-depth study of the Debt Collection Practices, Interest Rates and Customer Base of a Major Illinois Payday Lender," March 2004. Tribune Enterprises," Payday Loan Industry Newsletter, Issue 03-10, 2003. 8 "Payday Lending: a Business Model that Encourages Chronic Borrowing" by Michael Stegman and Robert Farris, Center for Community Capitalism, University of North Carolina, 2003. 9 "A Survey of Check Cashers in the San Fernando Valley" by Roberto Barragan and Arthi Varma, Valley Economic Development Center, December 2004. Page 3 000 5 The Financial Divide These two ostensibly separate financial structures are in fact complementary faces of the same financial system separated by a thin veneer of pretense. The California Reinvestment Coalition (CRC) studied these predatory lenders and the financial links between them and major financial institutions in five California counties. Lending records show that Bank of America, JP Morgan Chase, U.S. Bank, Union Bank of California, Wells Fargo Bank, Westamerica Bank and other financial institutions are lending hundreds of millions of dollars to underwrite the activities and growth of usurious check cashcrs and payday lenders. It is a myth that check cashers and payday lenders are a cash business that finances itself. In fact, CRC found that the majority are underwritten by mainstream capital. In Fresno and Sacramento Counties, sixty percent of the check cashers and payday lenders are supported by major financial institutions (see Appendix B). In Alameda County, Los Angeles and San Diego it is nearly as prevalent. In addition to the banks listed above, they are also financed by Banco Popular, Hanmi Bank, Westamerica Bank, Saehan Bank, and Merchants Bank. So, instead of these mainstream financial institutions directly providing reasonably priced financial products to lower -income communities and communities of color, banks profit from check cashers and payday lenders who prey upon these consumers. This is particularly apparent with the new giants of predatory consumer lending: • • • Dollar Financial Group maintains a $60 million revolving credit line with Wells Fargo Bank. Dollar operates as Money Mart in California where 119 of its 1,130 stores are located. In 2004, their gross national revenue was $246.4 million. Advance America has a $300 million credit facility with Bank of America. Advance America Cash Advance Centers have 303 of their 2,290 stores in California. In 2004, their gross national revenue was $489.5 million. ACE Check Cashing has a $200 million revolving credit line with Wells Fargo and JP Morgan Chase Banks. Ace America's Cash Express operates 130 of their 1,327 stores in California. In 2004, their gross national revenue was $253 million. From Mom & Pop to National Franchises This bottom -dwelling financial tier is no longer little Mom and Pop stores. As can be seen above, it is an already huge, consolidating industry that offers highly profitable franchises charging usuriously high prices for financial services. It has grown 1100 percent nationally from 1996 to 2003. The amount of payday lending grew 84 percent10 in Washington State in just the last three years according to a report released recently by that state's Department of Financial Institutions. There were 1.55 million payday loans made in 2003 in Washington State or one and a half loans for every state resident who is sixteen years old or older. California has 6,446 locations licensed by the state to do check cashing or payday lending. This is more than five times as many locations as McDonald's Hamburgers has in the state. Half of these licensees are liquor stores, groceries, and convenience stores for whom this is a secondary business. The remaining 3,106 are retail consumer outlets whose primary business is predatory 1° From $580.5 million in 2000 to $1 .07 billion in 2003. Payday Lending Report, Statistics & Trends for 2003, Washington State Department of Financial Institutions, January 2005. Page 4 000 6 The Financial Divide finance: check cashing and payday lending. Three hundred and three of these solely predatory locations, or ten percent, are owncd by one financial corporation, Advance America. Across California, two-thirds, or 2,186 of the 3,106 primarily payday and check cashing outlets are chains of three or more outlets (see Appendix A). In the five counties studied, sixty to eighty percent of these predatory lenders are chains consisting of three or more stores. In Sacramento County, eight of ten of these outlets are chains. It is big business to over -charge those with few alternatives. Three of the largest of these predatory lenders in California are actually bank subsidiaries. Union Bank of California has its own check cashing outlet, 15 offices of Cash & Save, as well as a partnership with Nix Check Cashing which has 59 outlets, all of them in the Los Angeles area. Banco Popular's subsidiary Popular Cash Express has 55 outlets almost all of which are in the Los Angeles area also. Bancomer Financial Services, a subsidiary of Mexico's second largest bank Bancomer, has 18 outlets in Southern California. Beyond investments and debt financing, banks also "provide cash to check cashers by permitting them to draw against uncollected funds, e.g., checks that have been deposited but have not yet been cleared.''" In contrast, regular consumers are not allowed to draw against their deposits until they have cleared. Chase Manhattan Bank, Citibank, Fleet Financial, HSBC and other banks have partnered with check cashers in New York, New Jersey and Connecticut to provide payroll services for the employees of the banks' commercial customers.'2 These banks would evidently prefer to send potential customers to check cashers rather than serve them directly. A number of the national predatory lenders hide behind national bank charters to avoid state regulation. Dollar Financial Group and ACE have an arrangement with Republic Bank, QC Holdings (California Budget Financing and USA Checks Cashed) with County Bank of Delaware and First Bank of Delaware has been partnering with the Cash Store, Check' N Go and Dollar Financial. ACE used Goleta National Bank near Santa Barbara, California, until recently when the Office of the Comptroller of the Currency ordered them to cease underwriting payday loans. A just -issued FDIC Financial Institution Letter: Guidelines for Payday Lending is a good tentative step toward stopping the evasion of state regulation. It describes concerns regarding the high risk nature of payday lending and its substantial growth. As a result of this two-tier infrastructure, the poor pay more for inferior financial products while being ignored by mainstream financial institutions. The dimensions of lower -tier finance nationally have increased geometrically in the last decade so that check cashing revenue is more than $60 billion and payday lending more than $40 billion annually. For one example of the high profits involved, Dollar Financial Group's operating margin on its stores in 2004 was 34.8 percent and its revenue per store was $407,000; this is an extremely profitable business. And, despite much discussion of the high level of risk, net write-offs by Dollar were only 0.25 percent of the face value of checks cashed. ii "Check Cashers arc Good Bank Customers" published by the Financial Services Centers of America, page 2. Z Ibid, page 3. Page 5 000 7 The Financial Divide Most people use check cashers because of barriers placed in their way by mainstream banks, such as distant branch locations and inappropriate products. CRC's just -completed survey of its members has many comments about these issues. "There is a shortage of branches in our neighborhoods. So, teller and ATM lines are very long." "We recently found that it is very expensive for low-income people without checking accounts to cash their checks at the local bank. This is a serious need." "There is no attention to the needs of low-income consumers." "The few bank personnel that are bilingual only know certain set products and cannot answer many questions." "What you hear from groups in minority communities has not changed — that banks have moved out and left their job to groups like non -profits that offer loan assistance and something other than ATM's." Dennis Telzrow, the consumer finance analyst at Stephens, Inc., estimates that thc payday loan center industry, which makes small high -interest loans for a short period of time (traditionally "until next payday"), is growing at a rate of 15 percent a year. "The payday loan product has the strongest growth among financial service offerings and is not well known on Wall Street. Growth opportunities are high in this industry"," he explains. "People in the lower income level live paycheck to paycheck. If they need a loan of some sort, they don't have much of an alternative, and that is why the payday loan is so strong." Mis-Treatment of Military Personnel Among those targeted by payday lenders and check cashers are military personnel. The greatest concentration of these usurious finance companies in the United States is in the zip code bordering Camp Pendleton in San Diego County14. A New York Times article" reported that 26 percent of all military households have had a payday loan. The Department of Defense has identified payday lending as one of ten key issues in its official "Key Issues - thc Department of Defense / States Military Partnership." It states "payday lending practices have proven to be detrimental to Service members who have chosen these loans as a way of overcoming immediate needs for cash." It suggests working toward state statutes that cap interest rates and establish usury ceilings. In Georgia last year, local military commanders were leaders in passing state statutes to limit payday lending interest rates in the face of strong opposition from the payday lending industry. 13 "Stephens Inc.: DRILLING DOWN INTO FINANCIALS" BY Meghan Leerskov, Buyside Magazine, 2005. 14 "Rent -a -Bank Payday Lending," Consumer Federation of America and the US Public Interest Group, November 2001. 15 "Seeking Quick Loans" by Diana Henriques, December 7, 2004. Page 6 000 8 The Financial Divide Retired Admiral Charles S. Abbot, President of the Navy -Marine Corps Relief Society, terms payday lenders "just legalized loan sharks16." Summary Millions of Californians are paying much higher rates for credit than they should, which directly impacts their ability to pay their families' basic expenses. Military personnel are specifically targeted by payday lenders. As can be seen, mainstream banks play the role of financing many of these predatory lenders while they offer minimal access to the neighborhoods on which the predators prey. The financial damage to hundreds of thousands of families as a result of this financial divide is rarely exposed to the public and even more rarely acted upon and remedied. CRC Prototypes The California Reinvestment Coalition has developed two product prototypes (see Appendix C) that banks can use to directly compete with check Bashers and payday lenders. CRC has proposed these prototypes to California's major financial institutions. None have yet adopted either product. • The Essential Bank Account: Many lower -income people have difficulty with "free" checking accounts and e-banking because their major payee, their landlord, won't accept personal checks or e-payments and the danger of expensive insufficient funds charges or "bounce protection." The Essential Bank Account has direct deposit and withdrawal only by ATM, point of sale or money order. Thus, the customer has a money order for the landlord and other payments and cannot incur insufficient funds charges. Since the financial institution controls payments, it could also allow the bank to lower the barriers of ChexSystems so that more people can open accounts. • The Quick Consumer Loan: The majority of borrowers are unable to repay their payday advance within the initial two week period and, with rollovers, may end up with interest greater than the initial loan. The Quick Consumer Loan is a two -month loan at 30 percent APR. It does allow partial payment but not rollovers. • • • • Recommendations Financial institutions must recognize the financial potential of lower -income communities and communities of color by 1) implementing products and marketing that is more appropriate for them and 2) opening branches in their neighborhoods. Cities and counties should restrict the proliferation of predatory lenders with zoning restrictions and other land use tools. The State of California should 1) restrict interest rates charged by these predatory lenders and 2) stop rollovers by payday lenders. The federal financial regulators should 1) end financing of and partnerships with predatory lenders by banks and savings & loans and 2) mandate that bank locations and products allow full access by under -served communities. 16 Letter to Washington State Senator Darlene Fairley in support of bills to tighten regulation of payday lending. Page 7 000 9 The Financial Divide Appendix A - Major California Check Cashers and Payday Lenders The following chart identifies the check cashers and payday lenders whose bank debt was reflected in public UCC loan filings in California. The first column is the debtor business, the second column reflects the number of outlets of that corporation in California, and the third is the number of outlets nationally (if known). The major check cashers are often subsidiaries of national chains. For example, Money Mart is a subsidiary of Dollar Financial Group with 1,130 stores nationally. California Budget Financing and USA Checks Cashed are subsidiaries of QC Holdings which has 295 stores across the country. In fact, all of the major California check cashers listed below are either national or international with the exception of Nix Check Cashing. Major California Check Cashers and Payday Lenders Outlets CA US ADVANCE AMERICA, CASH ADVANCE CENTERS 303 2,290 CHECK'N GO 174 1,100 CHECK INTO CASH 139 715 ACE AMERICA'S CASH EXPRESS 130 1,111 MONEY MART 119 1,130 CALIF. BUDGET FINANCE 65 295 NIX CHECK CASHING 59 59 CALIFORNIA CHECK CASHING STORES, INC. 58 GIROMEX, INC. 56 POPULAR CASH EXPRESS 55 CASH PLUS 42 80 USA CHECKS CASHED 39 TRAVELEX CURRENCY SERVICES INC. 25 BANCOMER FINANCIAL SERVICES, INC. 18 Page 8 00010 Debtor ACE America's Cash Express Advance America Cash Advance Centers Advance America Cash Advance Centers Broadway Liquor and Deli California Budget Finance Cash Plus Cash Plus Check Into Cash Check Into Cash of California Check Into Cash of California Check 'N Go of California Check 'N Go Worldwide Money Mart Popular Cash Express Debtor Advance America Cash Advance Centers Advance America Cash Advance Centers California Budget Finance California Check Cashing Stores Cash & Go Cash 1 Check Into Cash Check 'N Go of California Check'N Go Worldwide Giromex Inc Money Mart The Financial Divide Appendix B - Loans by County The following charts identify the check cashers and payday lenders whose bank debt was reflected in public UCC loan filings in the five California counties that were studied. The first column is the debtor business, the second column reflects the number of outlets of that corporation in the particular county, and the third is the bank lender. (Please note that some check cashers and payday lenders have more than one credit relationship. In that case, the number of outlets is only listed once.) Alameda County Outlets 9 Fresno County Outlets 7 23 1 7 3 3 4 8 2 8 Page 9 1 6 3 5 8 12 3 Lender US Bancorp Wells Fargo Fin Leasing US Bank NA Union Bank of California JP Morgan Chase Banco Popular Bank of America PNC Bank NA National City Bank Merchants Bank of CA Wells Fargo Bank Lender Wells Fargo Bank US Bancorp Wells Fargo Fin Leasing United Commercial Bank US Bank NA Hanmi Bank Westamerica Bank Bank of America Bank of America National City Bank PNC Bank NA National City Bank Wells Fargo Bank Banco Popular 00011 Debtor ACE Cash Express Advance America Cash Advance Centers Advance America Cash Advance Centers American Check Cashing Area Check Cashing Centers Area Check Cashing Centers Area Check Cashing Centers Associated Foreign Exchange Azteca of California, Inc. Bancomer Financial Services Benny's Market Benny's Market California Budget Finance Cash 1 Cash Ina Flash Cash In a Flash, Inc. Cash Plus Check Advance Services, Inc. Check Into Cash Check'N Go of California Check'N Go Worldwide City Check Cashers Continental Currency Services Currency Services of California Fast Cash, Inc. Gentri Finance Giromex Inc Giros Internacionales Mexico Check Cashing Mexico Check Cashing Money Machine Money Mart Money Mart Nix Check Cashing Omnipol Capital, Inc. Payday Advance Payday Advance Popular Cash Express The Financial Divide Los Angeles County Outlets 38 59 Page 10 Lender Wells Fargo Bank Texas US Bancorp Wells Fargo Fin Leasing 1 JP Morgan Chase Bank 4 Wilshire State Bank Orange Community Bank Wilshire State Bank 7 Union Bank 2 Corus Bank 12 Bancomer 1 Hanmi Bank Saehan Bank 16 US Bank NA 2 Banco Popular 4 Union Planters Bank Banco Popular North America 14 Merchants Bank of CA 3 Wells Fargo Financial Leasing, Inc. 31 Bank of America 42 PNC Bank NA National City Bank 8 Banco Popular North America 26 Bank of California 10 Union Bank of California 1 California Bank & Trust 1 Hanmi Bank 23 Merchants Bank of CA 8 Merchants Bank of CA 1 Merchants Bank of CA Merchants Bank of CA 5 Merchants Bank of CA 23 Wells Fargo Bank Banco Popular 55 Union Bank of California 1 Merchants Bank of CA 4 Banco Popular US Bancorp 44 Banco Popular 00012 Debtor ACE Cash Express Advance America Cash Advance Advance America Cash Advance California Budget Finance California Check Cashing Stores Cash & Go Cash 1 Check Into Cash Check 'N Go of California Check 'N Go Worldwide Money Mart Sunrise Check Cashing Travelex Currency Services USA Cash Services The Financial Divide Su Casa De Cambio Sun's Cash Express Travelex Currency Services USA Cash Services Management, Inc. Sacramento County Outlets 13 Centers 17 Centers 4 Merchants Bank of CA 1 Merchants Bank of CA 4 Barclays Bank, Sec Trustee 1 Wells Fargo Bank San Diego County Debtor ACE Cash Express Advance America Cash Advance Centers Advance America Cash Advance Centers Baja-Mex Currency Services Cash N Advance Centers of CA Cash Plus Cash Plus Check Advance Services Check Cashing Etc. Check Into Cash of California Check Into Cash of California Check 'N Go of California Check 'N Go Worldwide Giromex Inc Page 11 2 13 7 3 6 6 14 1 1 8 Outlets 3 23 5 4 3 2 5 7 13 4 Lender Wells Fargo Bank Texas US Bancorp Wells Fargo Fin Leasing US Bank NA Union Bank of California JP Morgan Chase Banco Popular Bank of America PNC Bank NA National City Bank Wells Fargo Bank US Bancorp Barclays Bank US Bank NA Lender Wells Fargo Bank Texas US Bancorp Wells Fargo Fin Leasing Wells Fargo Bank Bank of America Hanmi Bank Westamerica Bank Wells Fargo Fin Leasing Travelers Express Co. Bank of America National City Bank PNC Bank NA National City Bank Merchants Bank of CA 00013 The Financial Divide Payday Now Inc 1 Banco Popular NA The Check Cashing Place 21 Mid Am Bank The Check Cashing Place Union Bank of CA Travelex Currency Services 5 Barclays Bank Page 12 00014 The Financial Divide Appendix C - CRC Bank Product Prototypes California Reinvestment Coalition THE ESSENTIAL BANK ACCOUNT California Reinvestment Coalition (CRC) is advocating for a low fee account known as the Essential Bank Account. Such an account could serve as a gateway into the financial mainstream for 20% of the population that is considered "unbanked." The Essential Bank Account has free money orders in lieu of checks and would allow account holders to draw their accounts down without incurring fees for non -sufficient funds (NSF) and/or for having their accounts be in the negative. The following is a list of general problems amongst banks' low cost or "free" checking accounts: • Monthly service fee if customer does not have minimum balance • Excessive fees for NSF which puts customer in danger of being listed on ChexSystems • Existing deposit only accounts (no checks) require customers to pay bills on-line • Fees often assessed for exceeding allowable transactions with a live teller or calls to customer service The Essential Bank Account would have following features: • Direct Deposit • No checks • ATM/Debit Card with unlimited use • Unlimited teller access and telephone customer service (live and pre-recorded) • Five free money orders per month • No minimum deposit to open and no minimum balance to maintain • Account Statement (hard copy, not on-line) • Loosened ChexSystems screening: Non fraudulent activity older than 1 year is disregarded if overdraft has been paid • Publicized acceptance of Matricula Consular as well as other foreign government - issued identification cards (i.e., Consular Identification cards) for primary identification • Publicized acceptance of alternative identification (i.e., utility bills) for secondary identification • No enrollment in a "bounce protection" plan Page 13 00015 The Financial Divide California Reinvestment Coalition THE QUICK CONSUMER LOAN California Reinvestment Coalition (CRC) is advocating with banks and savings & loans for a low cost consumer loan known as the Quick Consumer Loan. This lending product is designed as an alternative to payday lending. The Quick Consumer Loan has a longer term, lower interest rate and does not allow extension of the loan. The following is a list of general problems with payday loans: • High interest rates of 400 to 500 percent APR • Allows loan to rollover endlessly causing the interest cost to sky rocket • Borrower cannot make partial payment The Basic Consumer Loan would have following features: • Customer with direct deposit and regular paycheck • Loan at $1 per $40 borrowed (30 percent APR) • Term of loan = two months • Loan cannot be taken out for a third consecutive month • Partial payments allowed • Loan is only available maximum of three times per year with at least one month between loans 474 Valencia Street, Ste 110, San Francisco, CA 94103 (415) 864-3980 *** fax (415) 864-3981 MgvlAw.calreinvest.org 00016 PAYDAY LENDING ZONING LAW/LEGISLATION TYPE OF ZONING LAW JURISDICTION PRINCIPAL CONTACT Conditional use permit for "small loan business." Limit business to certain commercial areas Arnold, MO Arnold City Council Mary Holden Create a separate license category for payday lending - $400 for business license v. $750 regular bank St. John, MO City Council Create a classification for payday institutions different from "financial institutions" Berkeley, MO City Council Gwen Verges First Ward Per capita limit if one store per 15,000 residents proposed ordinance St. Joseph, MO Conditional use process that allows a site- specific review by the board of supervisors Chesterfield, VA Thomas Jacobson Director of Planning Special use permit requirement (1000 ft. separation between payday lenders failed) Las Vegas, NV City Council Michael McDonald Councilman Conditional use permit for each location. Require public haring for each request. St. Louis County, MO County Council & Planning Commission City Zoning Code does not prohibit or permit check cashing services - decision on a case -by -case basis. Ft. Lauderdale, FL Pembroke Pines Board of Adjustment Saul Shechter, board member & Mayor Alex Fekete Zoning does not include check cashing. Burlington, VT Planning Department Special Use Permits Milwaukee, WI Alderman Terrance Herron Special Use Permits Glendale Heights, IL Village Planning Commission Change zone classification from a service district to special use which would require public hearing. Chicago, IL City Council Alderman Toni Preckwinkle State Bill: Vermont * Require a license from the Dept. of Banking, Insurance, Securities & Health Care Administration. * Check cashing business could charge no more than 5% of the pay check or $5, whichever is greater; government checks, 3% of their value or $2; personal checks or money orders 10% of their value or $5. * Check cashing business banned from holding checks for future deposit while providing cash (payday loans). * One-time membership fees not to exceed $10. C\DOCUMENTS AND SETTINGS \RHRADECK\LOCAL SETTINGS \TEMPORARY INTERNET FILES \OLK5WDL LAW LEG CHART WALRATH. WPD 0001 7 GAO April 2005 GAO-05-349 United States Government Accountability Office Report to the Honorable Richard J. Durbin, U.S. Senate MILITARY PERSONNEL DOD's Tools for Curbing the Use and Effects of Predatory Lending Not Fully Utilized GAO Accountability * Integrity* Reliability 00018 G A O Accountability. Integrity. Reliability Highlights Highlights of GAO-05-349, a report to Senator Richard J. Durbin Why GAO Did This Study The Department of Defense (DOD) has expressed concerns about servicemembers' use of predatory consumer Loans as well as their overall financial conditions. "Predatory lending" has no precise definition but describes cases where a lender takes unfair advantage of a borrower, sometimes through deception, fraud, or terms such as very high interest or fees. Serious financial problems can adversely affect unit morale and readiness as well as servicemembers' credit history and military career. DOD has tools such as off-limits lists to help curb the use and effects of predatory loans. GAO answered two questions: (1) To what extent do active duty servicemembers use consumer loans considered to be predatory in nature? and (2) Are DOD and active duty servicemembers fully utilizing the tools that DOD has to curb the use and effects of predatory lending practices? What GAO Recommends GAO is making two recommendations for DOD to curb the use and effects of predatory lending practices on servicemembers: amend regulations to require at least semi- annual meetings of the Armed: Forces Disciplinary Control Boards and clarify regulations pertaining to advertisements in official DOD publications. DOD concurred with GAO's recommendations. www.gao.govicgl-bln/getrpt?GA0-05-349. To view the full product, including the scope and methodology, click on the link above. For more information, contact Derek Stewart at (202) 512-5559 or stewartdgao.gov.. April 2005 MILITARY PERSONNEL DOD's Tools for Curbing the Use and Effects of Predatory Lending Not Fully Utilized What GAO Found The extent to which active duty servicemembers use consumer loans considered to be predatory and the effects of that borrowing are unknown. The only DOD -wide data come from surveys. In a 2004 survey, 12 percent of servicemembers said they or their spouse had used, during the last 12 months, at least one of four types of loans: payday, rent -to -own, automobile title pawn, or tax refund, which DOD says can often be associated with predatory lending practices. DOD is unable to quantify the extent to which the loans have associated predatory practices, the frequency of such borrowing, the amounts borrowed, or the effects of the loans. Although not generalizable, participants in GAO's 60 focus groups at 13 bases in the United States and Germany identified problems resulting from the use of short-term consumer loans, but other participants described the loans as quick, easy, and obtainable by servicemembers with bad credit. Privacy concerns and the reluctance of servicemembers to reveal financial problems make it difficult to quantify the use and effects of predatory lending. DOD and active duty servicemembers are not fully utilizing DOD's tools for curbing the use and effects of predatory lending practices. At some of the installations that we visited, the Armed Forces Disciplinary Control Board — a panel that can recommend to an installation commander that a business be placed off-limits to servicemembers—had not met in over a year. Fort Drum's board, for example, had not met in about 4 years, even though the New York Attorney General had filed two lending -related lawsuits against businesses on behalf of servicemembers and some of their family members at Fort Drum. DOD officials told us the reasons for boards not meeting or making recommendations include high deployment levels and the effort required to place a business on an off-limits list. Other commanders effectively changed businesses' predatory practices by using their board's recommendations to place or threaten to place the businesses off-limits. In addition, DOD is not always providing a clear message regarding advertising in installation publications. Participants in GAO's focus groups said they were confused because DOD -provided financial management training (described in our 2005 report, Military Personnel: More DOD Actions Needed to Address Servicemembers' Personal Financial Management Issues) warned them against using payday lenders but some installation newspapers carried advertisements for such businesses. These problems occur even though a DOD instruction requires (1) a disclaimer indicating that the advertisement does not constitute endorsement by the U.S. government and (2) a review by public affairs staff to determine if the advertisement might be detrimental to servicemembers. Our review of some installation newspapers showed possible reasons for the confusion; the disclaimers were often not prominently displayed or were located away from the advertisements. DOD also offers servicemembers free legal review of contracts and other financial transactions, but servicemembers often do not use the reviews until problems result. Recently, DOD began exploring additional on -installation alternatives to payday loans. United States Government Accountability Office 00019 Contents Letter Results in Brief Background Use of Consumer Loans That Are Considered Predatory Is Unknown, but Sources Say Predatory Lenders May Be Targeting Servicemembers DOD's Tools for Curbing the Use and Effects of Predatory Lending Underutilized Conclusions Recommendations for Executive Action Agency Comments and Our Evaluation 1 3 5 7 12 18 18 19 Appendixes Appendix I: Appendix II: Appendix III: Appendix IV: Appendix V: Scope and Methodology Predatory Lending Findings from GAO -Led Focus Groups Held at 13 Installations Comments from the Department of Defense GAO Contact and Staff Acknowledgments Related GAO Products 21 24 30 36 37 Table Table 1: Installations in the United States and Germany Where GAO Conducted Site Visits from May to October 2004 21 Figure Figure 1: The Number of Servicemembers in Each State and Whether or Not the State Has Payday Lending Laws with Interest Caps or Other Prohibitions 11 Abbreviations DOD Department of Defense PFM personal financial management Page 1 GAO-05-349 Predatory Lending 00020 Contents This is a work of the U.S. government and is not subject to copyright protection in the United States. It may be reproduced and distributed in its entirety without further permission from GAO. However, because this work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce this material separately. Page GAO.05-349 Predatory Lending 00021 United States Government Accountability Office Washington, D.C. 20548 April 26, 2005 The Honorable Richard J. Durbin United States Senate Dear Senator Durbin: The Department of Defense (DOD) has expressed continuing concerns about servicemembers' use of predatory consumer loans. These loans can result in financial problems that may lead to severe negative consequences for the military as a whole (e.g., decreases in unit readiness and morale) as well as for the servicemembers themselves (e.g., criminal and adverse personnel actions, including possible discharge from the military). "Predatory lending" has no precise definition, but is generally used to describe cases in which a lender takes unfair advantage of a borrower, sometimes through deception, fraud, or manipulation, to make a loan that contains terms that are disadvantageous to the borrower.' DOD policy officials have expressed concerns over certain types of high -cost, short- term consumer loans that are typically provided by lenders who lie outside the system of federally insured financial institutions. These include payday loans, rent -to -own loans, automobile title pawn loans, and tax refund loans. DOD has a number of tools to address the use and effects of loans that it considers predatory. These tools include: (1) the Armed Forces Disciplinary Control Boards,2 which can make recommendations to installation commanders who can then use or threaten to use their "off-limits" authority to prohibit servicemembers from using a business that engages in predatory lending practices; (2) free legal assistance with 'See GAO, Consumer Protection: Federal and State Agencies Face Challenges in Combating Predatory Lending, GAO-04-280 (Washington, D.C.: Jan. 30, 2004). The cited report addresses home mortgage lending and equity loans, but our work did not. Nevertheless, some lending practices are widely acknowledged to be predatory and include charging excessive fees and interest rates, repeatedly rolling over or refinancing loans without economic gain for the borrower, falsifying documents, and intentionally misinforming borrowers about the terms of their loans. 2For the joint service instruction, see AR190-2, OPNAVIST1620.2A, AFI31-213, MC01620.2C, COMDTINST1620.1D, Armed Forces Disciplinary Control Boards and Off Installations Liaison and Operations (June 1993). Under this joint policy, installation commanders, at their discretion, may establish such boards to advise and make recommendations to the commanders on matters concerning eliminating conditions around their installations that are adversely affecting the health, safety, welfare, morale, and discipline of the Armed Forces. Page 1 GA0-O5-349 Predatory Lending 00022 contracts and other financial transactions; and (3) personal financial management (PFM) programs that offer servicemembers assistance, such as financial management training and counseling. In addition, DOD has encouraged servicemembers to seek, for example, payday loan alternatives available from on -installation banks, on -installation credit unions, and service -affiliated relief/aid societies.3 This report supplements the information we provided to you in our February 2004 report on bankruptcies among active duty servicemembers, and our April 2005 report on the financial conditions of deployed servicemembers and the financial management assistance and training provided to servicemembers.4 For this report, we agreed with your staff to answer two questions: (1) To what extent do active duty servicemembers use consumer loans considered to be predatory in nature? and (2) Are DOD and active duty servicemembers fully utilising the tools that DOD has to curb the use and effects of predatory lending practices? In addressing these two questions, we limited the scope of our work to active duty personnel and emphasized junior enlisted servicemembers (i.e., pay grades El to E4) because DOD and service officials have indicated that this subgroup —whose basic pay currently ranges from about $1,200 to $1,900 per month —is most likely to encounter financial problems. Numerous methods were used to gather and assess information for this work.' We examined DOD and service policies and tools for assisting servicemembers with their financial management, establishing and using Armed Forces Disciplinary Control Boards, and advertising in installation publications. In addition, we reviewed reports by GAO, other congressional research offices, DOD, and other organizations. We contacted the Federal Trade Commission to ascertain what data were available through Military Sentinel regarding the types of consumer complaints servicemembers filed against businesses. We interviewed DOD and service policy officials and officials from organizations such as the Consumer Federation of America — 'See GAO, Military Personnel: More DOD Actions Needed to Address Servicemembers' Personal Financial Management Issues, GAO-05-348 (Washington, D.C.: Apr. 26, 2005) for information about the military's PFM training and counseling, as well as other components of the PFM programs. These programs are part of DOD's core family support programs that are used to address the adverse effects associated with personal financial problems. 'See GAO-05-348 and GAO, Military Personnel: Bankruptcy Filings among Active Duty Service Members, GAO-04-465R (Washington, D.C.: Feb. 27, 2004). 'The data for this work were gathered at the same time as the data used in GAO-05-348. Page 2 GAO.O5-349 Predatory Lending 00023 Results in Brief a consumer advocacy group —and the Community Financial Services Association ofAmerica—a payday lending association —to understand the different perspectives about servicemembers' use of short-term consumer loans. During site visits to 13 military installations in the United States and Germany, we requested documents pertaining to predatory lending such as guidance or instructions regarding predatory lending activities at the installations and training materials; used structured questionnaires to gather data from a variety of personnel on the 13 installations: command leaders, PFM program managers, command financial counselors, legal assistance attorneys, senior noncommissioned officers (pay grades E8 to E9), chaplains, and staff from the military relief/aid societies; and conducted 60 focus groups composed of over 400 junior (pay grades El to E4) and senior (pay grades E5 to E9) enlisted servicemembers, company grade officers (pay grade 01 to 03), and servicemembers' spouses. In addition, we administered a questionnaire to participants in the focus groups to collect supplemental information. While data from these four types of homogeneously composed focus groups are not generalizable to the entire DOD population of active duty servicemembers, the data provide context for understanding lending/borrowing and PFM issues. In addition, we conducted group interviews of personnel affiliated with the PFM programs while they attended a November 2004 conference. We reviewed 14 installation newspapers and examined the disclaimers and advertisements in these newspapers during the course of our review. We reviewed information in DOD's August 2004 active duty survey related to Endings for four types of loans: payday, rent -to -own, automobile title pawn, and tax refund, which DOD says may include predatory practices. The August 2004 survey had a response rate of 40 percent. DOD has conducted and reported on research to assess the impact of this response rate on overall estimates. They found that, among other characteristics, junior enlisted personnel (El to E4), servicemembers who do not have a college degree, and members in services other than the Air Force were more likely to be nonrespondents. We found the data sufficiently reliable to address our objectives. We performed our work from March 2004 through February 2005 in accordance with generally accepted government auditing standards. The extent to which active duty servicemembers use consumer loans considered to be predatory in nature and the effects of such borrowing are unknown, but many sources suggest that providers of such Loans may be targeting servicemembers. The only DOD -wide data come from surveys that have low response rates that make findings projected to the population Page 3 GAO-05-349 Predatory Lending 00024 of all active duty servicemembers or subgroups thereof tenuous. In a 2004 survey, 12 percent of servicemembers said they or their spouse had used, during the last 12 months, at least one of four types of loans: payday, rent - to -own, automobile title pawn, and tax return, which DOD says can often be associated with predatory lending practices. DOD is unable to quantify the extent to which the loans have associated predatory practices, the frequency of borrowing, the amounts borrowed, or the effects of the loans. Although not generalizable, participants in GAO's 60 focus groups at 13 bases in the United States and Germany identified problems such as high fees and debt collection methods resulting from the use of these types of short-term consumer loans, but other participants described the loans as quick, easy, and obtainable by servicemembers with bad credit. Privacy concerns and the reluctance of servicemembers to reveal financial problems make it difficult to quantify the use and effects of predatory lending. While DOD is unable to quantify usage and effects, consumer advocates, state government officials, DOD officials, and servicemembers in our focus groups indicated that military personnel are being targeted by some predatory lenders and are adversely affected when they use businesses that employ predatory lending practices. DOD and active duty servicemembers are not fully utilizing DOD's tools for curbing the use and effects of predatory lending practices. While commanders at some installations we visited have changed the illegal or unfair practices of some businesses by using recommendations from Armed Forces Disciplinary Control Boards to place or threaten to place businesses off-limits to servicemembers, boards at three installations we visited had not met in over a year. For example, Fort Drum's board had not met in about 4 years, even though the New York Attorney General had filed two lending -related lawsuits against businesses on behalf of servicemembers and some of their family members at Fort Drum. Installation officials told us the reasons for boards not meeting or making recommendations include high deployment levels and the effort required to place a business on the off-limits list. A second tool that DOD is underutilizing pertains to advertisements in installations' newspapers. Participants in GAO's focus groups said they were confused because DOD - provided financial management training warned them against using payday lenders but some installation newspapers carried advertisements for such businesses. These problems occur even though a DOD instruction requires (1) a disclaimer indicating that the advertisement does not constitute endorsement by the U.S. government and (2) a review by public affairs staff to determine if the advertisement might be detrimental to servicemembers. Our review of some installation newspapers showed that the confusion and Page 4 GAO-05-349 Predatory Lending 00025 Background incorrect assumptions may be, in part, the result of the disclaimers often being located away from the advertisement or not being prominently displayed. Third, servicemembers typically have not made full use of free DOD -provided legal assistance before signing contracts and other financial documents, but they sometimes use the assistance after financial problems develop. According to servicemembers and legal assistance attorneys, military personnel may avoid the DOD -provided legal assistance for fear that their career progression would be limited if the command were to learn of their financial problems. Recently, DOD has explored additional on -installation alternatives to payday loans, like special loan programs offered by on -installation credit unions and banks. We are making two recommendations to improve DOD's ability to curb the use and effects of predatory lending practices: (1) amend existing regulations to require at least semiannual meetings of the Armed Forces Disciplinary Control Boards and (2) clarify regulations pertaining to advertisements in installation publications to require more prominent disclaimers and additional steps to ensure advertisements reflect stated DOD policies. In commenting on a draft of this report, DOD concurred with our recommendations. DOD officials have expressed concern that servicemembers are often the victims of predatory lending practices by certain types of lenders who typically lie outside the system of traditional financial institutions such as banks. These lenders offer alternative access to cash for consumers with low incomes or poor credit records, and generally do so without standard credit checks. The fees charged for these alternative loans are generally much higher than those charged by traditional financial institutions, and other terms and conditions of such loans are often unfavorable to the borrower. As a result, some federal, state, and consumer advocacy agencies have expressed concern that many of these alternative loans could include predatory practices. The most common of these loans include the following: Page 5 GAO.05-349 Predatory Lending 0002E • Payday loans, according to the Federal Deposit Insurance Corporation, are small, short-term loans that borrowers promise to repay out of their next paycheck or deposit of funds. These loans typically have high fees and are often rolled over repeatedly, which can make the cost of borrowing —expressed as an annual percentage rate —extremely high.' • Rent -to -own loans, according to the Federal Trade Commission, provide immediate access to household goods (such as furniture and appliances) for a relatively low weekly or monthly payment, typically without any down payment or credit check. Consumers have the option of purchasing the goods by continuing to pay "rent" for a specified period of time —however, the effective cost of the goods may be two to three times the retail price.' • Automobile title pawns provide short-term loans to borrowers who give the lender the title to their car as collateral for the loan. Effective interest rates are generally very high. • Tax refund loans provide cash loans against the borrower's expected income tax refund. Senior DOD and service officials have noted that such loans may have associated predatory lending practices, which can be detrimental to servicemembers who choose these loans as a way to overcome immediate needs for cash The fees for loans such as the payday loans provide a general indication of the loans' potential detrimental financial effects on servicemembers' finances. The Community Financial Services Association of America, a payday -advance trade association, which says that it represents more than half of the payday advance industry, developed a set of best practices for its member companies. Among other things, the association's best practices limit the number of extensions for outstanding 6According to the Federal Reserve Bank of Philadelphia, fees for apayday loan range from $15 to $30 on each $100 advanced. If the fee is $15 to borrow $100 for 14 days, the annualized percentage rate for that loan is 391 percent. If the borrower extends the 14-day loan four times beyond the initial loan, the 70-day loan of $100 would result in paying $75 in fees in addition to repaying the borrowed $100. 'Survey of Rent -to -Own Customers, Federal Trade Commission Bureau of Economics Staff Report (undated). Page 6 GAO.05-349 Predatory Lending 00027 Use of Consumer Loans That Are Considered Predatory Is Unknown, but Sources Say Predatory Lenders May Be Targeting Servicemembers advances.8 Association representatives noted that borrowers select payday loans over other alternatives for a number of reasons. For example, in some instances, the officials stated that the individual may not have the good credit history required to borrow from a bank or credit union. In other instances, an individual might use a payday loan to avoid a bounced check fee, late payment penalty, or reconnection fees associated with the late payment of a utility bill. The Congressional Research Service estimated that the number of payday loan offices nationwide increased from approximately 300 in 1992 to almost 15,000 in 2002, and the total dollar volume of payday loans in 2002 was about $25 billion.' The extent to which active duty servicemembers use consumer loans considered to be predatory and the effects of such borrowing are unknown, but many sources suggest that predatory lenders may be targeting servicemembers. While DOD has some data on servicemembers' use of four types of loans, DOD is unable to quantify the extent to which these types of loans have associated predatory practices, the frequency of borrowing, the amounts borrowed, or the effects of the loans. Information from our focus groups, however, provided insights to some of these issues. Although DOD is unable to quantify usage and effects, consumer advocates, state government officials, DOD officials, and servicemembers in our focus groups indicated that military personnel are being targeted by some predatory lenders. 'The association's Web site (www.cfsanet) states that "a member will comply with State laws on rollovers (the extension of an outstanding advance by payment of only a fee). In States where rollovers are not specifically allowed, a member will not under any circumstances allow a customer to do a rollover. In the few States where rollovers are permitted, a member will limit rollovers to four (4) or the State limit, whichever is less." The association also established a separate set of best practices for dealing with military customers and published them on its Web site. 'See Congressional Research Service, Payday Loans: Federal Regulatory Initiativs, RS21728 (Washington, D.C.: Feb. 5, 2004). Page 7 GAO-05-349 Predatory Lending 00028 DOD Has Limited Data for Quantifying the Extent That Servicemembers Use Consumer Loans Considered Predatory DOD does not have comprehensive data for quantifying the extent to which servicemembers use consumer loans that are considered predatory in nature and the effects of such use on servicemembers' finances or their units' readiness. The only DOD -wide statistics on servicemembers' use of loans are obtained from surveys. In the August 2004 DOD survey,10 12 percent of servicemembers indicated that, during the last 12 months, they or their spouse had used at least one of the four specified types of financial loans that DOD says may have associated predatory practices. Seven percent of servicemembers indicated they (or their spouse) had obtained payday loans; 4 percent had obtained rent -to -own loans, 1 percent had obtained automobile title pawn loans, and 6 percent had obtained tax refund loans. While only 2 percent of the officers had used any of the four financial transactions, 14 percent of the junior and 13 percent of the senior enlisted servicemembers had used at least one such loan. Although not generalizable to all active duty servicemembers and their spouses, some of the more than 400 participants in our 60 focus groups reported encountering problems when they used the short-term consumer loans; while other servicemembers said such loans have positive elements such as being quick, easy, and obtainable even if servicemembers had a bad credit history (see app. II for example comments). DOD's efforts to assess predatory lending are hampered by the lack of a precise definition of predatory lending —a problem shared with other organizations attempting to quantify the use and effects of predatory loans. The lack of precision in the definition is found in DOD's acknowledgement that the four types of loans may (Le., not always) contain predatory lending practices, but other DOD statements state that payday lending is predatory, without including a qualifier. Imprecision in the definition and the way the questions are asked on surveys can affect results. For example, the percentage of servicemembers who reported using the various types of loans may be larger than the percentage of servicemembers who would have said they obtained a predatory loan, had the question been oriented somewhat differently. Other important issues not addressed in the survey but needed to quantify the extent and effects of borrowing from lenders 10Because the response rate for this survey was 40 percent, uncertainty wrists as to how well the survey findings actually project to the population of all active duty servicemembers or any subgroup thereof. The loan -related items presented in this report are only a small portion of the many and diverse questions on the survey. According to DOD, the sampling errors for all of the following estimates from the August 2004 survey do not exceed plus or minus 2 percentage points. Page 8 GAO-05.349 Predatory Lending 00029 Multiple Sources Indicate Some Predatory Lenders May Be Targeting Servicemembers that may use predatory lending practices include questions on the frequency of use, amounts borrowed, negative and positive effects of the loans, and any problems encountered during the transactions. DOD, service, and installation officials maintained that obtaining data on the use and effects of predatory lending are also hampered because of privacy considerations and the reluctance of most servicemembers to discuss their financial difficulties with their command. Installation officials told us that they are likely to learn about servicemembers' use of the previously cited types of loans only when a situation has become serious enough to warrant creditors contacting the command or servicemembers contacting either financial counselors or legal assistance attorneys on the installations. Because of general privacy concerns, it is unlikely that all contacts with attorneys and counselors could be provided in an installation -level statistic. According to some consumer advocates, state officials, DOD officials, and military personnel, servicemembers are targeted by predatory lenders. A 2003 National Consumer Law Center report stated that junior enlisted servicemembers are targeted because they have a relatively low but secure income (with military basic pay that currently ranges from about $1,200 to $1,900 per month) and tend to be young and financially inexperienced.') The report further suggested that deploying servicemembers are more vulnerable targets than their nondeploying peers because the former often must get their finances in order quickly and leave behind spouses who may not know how to manage the family's finances. The report noted several financial practices that it considered "consumer scams" aimed at servicemembers. These included payday loans, rent -to -own transactions, and automobile title pawns. Some state officials have also suggested that payday lenders —a type of predatory lending according to DOD —target servicemembers. For example, the Georgia General Assembly has recently determined as part of its new antipayday lending legislation that despite its illegality, payday lending was growing in Georgia and having an adverse effect on "See National Consumer Law Center, Inc., In Harms Way At Home.' Consumer Scams and the Direct Targeting of America's Military and Veterans (Boston, Mass.: May 2003). Page 9 GA0-05-349 Predatory Lending 00030 servicemembers and others in the state." Similarly, the Florida governor's 2004 statement to the Committee on Senate Armed Services, Subcommittee on Personnel, noted that Florida had regulated activities of payday loan and check cashing businesses that traditionally target servicemembers. In 2004, the Under Secretary of Defense for Personnel and Readiness posted an issue paper on its Web site19 to the National Governors Association that addressed payday lending and other personnel issues. Regarding payday lending, the Under Secretary stated that "Payday lending practices have proven to be detrimental to servicemembers who have chosen these loans as a way of overcoming immediate needs for cash... Statutes that cap small loan interest rates and establish usury ceilings help protect vulnerable servicemembers from the usury nature of payday loans and their associated predatory practices." According to a 2004 Consumer Federation of America study, 15 states prohibit or limit payday lending through laws on interest rate caps for small loans, usury laws, or specific prohibitions for check cashers.'4 We did not independently verify that these 15 states, in fact, do prohibit this activity, nor did we review laws in the other 35 states. Figure 1 shows these 15 states identified by the Consumer Federation of America, along with information on the number of active duty servicemembers on installations in each state. Even in those states that prohibit or otherwise regulate payday loans, servicemembers may be able to obtain such loans. Another Consumer Federation of America report noted that a growing number of Web sites deliver small loans, with some lenders using anonymous domain registrations or residing outside the United States.16 'Official Code of Georgia Annotated Title 16, Chapter 17. 13See DOD Web site http://www.USA4MilitaryFamilies.org. " See Consumer Federation of America, Unsafe and Unsound: Payday Lenders Hide Behind FDIC Bank Charters to Peddle Usury (Washington, D.C.: Mar. 30, 2004). This report noted that 33 states and the District of Columbia authorize payday loans by law or regulation, and two additional states have no usury limits on small loans by licensed lenders. 16See Consumer Federation of America, Internet Payday Lending: How High -Priced Lenders Use the Internet to Mire Borrowers in Debt and Evade State Consumer Protections (Washington, D.C.: Nov. 30, 2004). Page 10 GAO-05-349 Predatory Lending 00031 Figure 1: The Number of Servicemembers in Each State and Whether or Not the State Has Payday Lending Laws with Interest Caps or Other Prohibitions 111. Hawaii N.H. Mass. R.I. Conn. N.J. Del. Md. D.C. States that prohibit payday loans due to small loan Interest rate caps, usury laws, and/or specific prohibitions for check cashiers 0 -4,999 active duty service members 5,000 - 29,999 active duty service members 30,000 or more active duty service members Source: Depedmeni of Defense and Consumer Federation of America. Page 11 GAO-05-349 Predatory Lending 00032 DOD's Tools for Curbing the Use and Effects of Predatory Lending Underutilized DOD and servicemembers are underutili7ing the tools that DOD has for curbing predatory lending practices and the effects of such lending. While commanders at some installations we visited have changed the unfair practices of businesses by using recommendations from Armed Forces Disciplinary Control Boards to place or threaten to place businesses on off- limits lists to servicemembers, boards at other installations we visited rarely met or made such recommendations. Although installation newspapers appear to meet current disclaimer requirements by including a statement noting that the U.S. government does not endorse a business' products or services, the advertisements may lead to confusion for readers because the disclaimers are not prominently printed or located near the advertisement. Additionally, servicemembers typically have not made full use of free DOD -provided legal assistance before signing contracts and other financial documents, but they sometimes use the assistance after financial problems develop. Recently, DOD has sought to expand the tools available for curbing the use and effects of predatory lending practices by exploring additional on -installation alternatives to payday loans. Armed Forces Disciplinary Control Boards Can Be an Effective Tool for Curbing Predatory Lending Practices, but They Are Underutilized Armed Forces Disciplinary Control Boards and the recommendations that they make to an installation commander to place businesses off-limits to servicemembers can be effective tools for avoiding or correcting unfair practices, but data gathered during some of our site visits to the various installations revealed few times when boards were used to address predatory lending practices.1e For example, at three of the installations, the board had not met for more than a year and, therefore, may not have adequately addressed whether actions were needed against businesses 'Under current DOD joint policy, if a board concludes that an establishment has unfair commercial or consumer practices, the installation commander can prohibit servicemembers from frequenting the business by placing the entity on an off-limits list. There are several steps a board completes prior to making a recommendation to the commander to place an establishment on the off-limits list. These steps include (1) notifying the owner or manager that the board is considering actions, and giving the owner or manager time to correct any adverse conditions or practices; (2) if the adverse conditions are not corrected, giving the owner or manager the opportunity to appear and present matters before the board; and (3) recommending an off-limits restriction, if further investigation indicates that improvements have not been made. These steps, according to some installation officials, can be time consuming and are designed to permit the owner or manager to voluntarily correct conditions or practices before the board recommends placement on an off-limits list. If a commander places a business on the off-limits list, servicemembers are prohibited from entering the establishment and face disciplinary action if they violate this prohibition. Page 12 GAO-05-349 Predatory Lending 00033 whose practices negatively affected servicemembers. The board at Fort Bragg, North Carolina, had not met for over a year and the board at Fort Stewart, Georgia, had not met since 2003 because the Directors for both boards had deployed to Iraq. The board at Fort Drum, New York, had not met in about 4 years because the board's Director did not see a reason to convene. He was not aware of two recent, lending -related lawsuits filed by the New York Attorney General that had connections with Fort Drum servicemembers. • The Attorney General settled a lawsuit in 2004 in behalf of 177 plaintiffs —most of whom were Fort Drum servicemembers—involving a furniture store that had improperly garnished wages pursuant to unlawful agreements it had required customers to sign at the time of purchase. • The Attorney General filed a lawsuit in 2004 involving catalog sales stores. He characterized the stores as payday -lending firms that charged excessive interest rates on loans disguised as payments toward catalog purchases. Some of the servicemembers and family members at Fort Drum fell prey to this practice. The Attorney General stated that he found it particularly troubling that two of the catalog stores were located near the Fort Drum gate. The Garrison Commander at Fort Drum and a representative of the board said that had they known about these cases, they would have considered placing the businesses on the off-limits list. Legal assistance attorneys at Fort Drum were, however, aware of the legal actions by the New York Attorney General. By not making full use of the boards, commanders may not be doing all they can to help servicemembers avoid businesses that employ predatory practices. According to officials at the installations we visited, the boards might not be used as a tool for dealing with predatory lenders for a variety of reasons. First, high deployment levels have resulted in commanders minimizing some administrative duties, such as convening the boards, in order to use their personnel for other purposes. Second, as long as the lenders operate within state laws, the boards may determine they have little basis to recommend placing or threatening to place businesses on the off-limits lists. Third, significant effort may be required to put businesses on off- limits lists. At the installations we visited, the boards' composition included representatives from functional areas like public works, family community services, legal counsel, safety, and public affairs. Page 13 GAO-05-349 Predatory Lending 00034 In contrast, businesses near two other installations we visited changed their lending practices after boards recommended that commanders place or threaten to place businesses on off-limits lists. The Commander of the Navy Region Southwest's board identified actions that were based on the board's recommendations against businesses committing illegal acts or taking unfair advantage of servicemembers. For example, in October 2002, a company was placed off-limits because it represented itself as a government agency when arranging loan -repayment allotments with servicemembers, threatened debtors with court-martial for nonpayment, and wrote loans that had interest rates of 60 percent. Similarly, the board at Camp Lejeune, North Carolina, threatened to take action against a lender that was charging 33.1 percent interest and requiring servicemembers to waive their rights set forth by the Servicemembers Civil Relief Act.17 The business avoided being placed on the installation's off-limits list by terminating two employees and changing some of its business practices. Advertising in Installation Newspapers Could Confuse Servicemembers about Whether the Military Endorses Payday Lenders In some instances, DOD is not providing a clear message about whether it endorses advertisers in official installation newspapers. Some servicemembers in our focus groups said they were confused about whether the military endorses the businesses that advertise in installation newspapers, and the confusion could lead servicemembers to use a type of business that DOD has labeled as potentially having predatory lending practices. Earlier, a 2003 Army publication stated that payday loan advertisements appear in official and unofficial military publications, and readers often incorrectly assume that military officals have approved the businesses and their claims.i8 A DOD instruction requires installation publications to run disclaimers warning readers that advertisements do not constitute endorsement by the U.S. government. The instruction also requires public affairs staffs to oversee the appropriateness of advertisements in installation publications.1° Among other things, the public affairs staff is to review advertisements and identify any that may be ' 50 U.S.C. App. § 501. The act, among other things, caps the annual interest at 6 percent on debts incurred prior to a person's entry into active duty military service and sets forth procedures for requesting such a reduction. 'See "Consumer Scams: Are You Getting Ripped Off?" Hot Topics, Vol. 5, No. 4 (2003). U.S. Army publication by the Office of the Chief of Public Affairs. 19DOD Instruction 5120.4, Enclosure 4, Department of Defense Newspapers, Magazines and Civilian Enterprise Publications (June 16, 1097). Page 14 GAO-05-349 Predatory Lending 00035 detrimental to DOD personnel or their family members. If an advertisement is found to be detrimental, the public affairs staff is to take steps to either have the advertisement removed by the publisher or report the situation to the installation commander who can act to preclude distribution of the publication on the installation. Servicemembers' confusion about businesses' advertisements may have multiple causes. First, readers may not see the advertising disclaimer. We reviewed 14 installation newspapers and found that all of them contained a disclaimer; however, we also observed that the disclaimers were typically (1) included only once in the newspaper, (2) listed with other administrative notices such as statements identifying the publisher and the availability of advertised items, and (3) located remotely from many of the advertisements. Second, advertisements for some types of businesses may run contrary to official DOD statements about the use of those businesses. Servicemembers participating in our focus groups said they were confused because DOD officials and information provided during PFM training warned against using payday lenders but such lenders were allowed to advertise in installation newspapers. We observed two such advertisements for a payday lender during our review of the 14 installation newspapers, and PFM program managers wrote comments about this issue when responding to a GAO survey of all PFM managers. Third, there is confusion about which businesses do and do not use predatory lending practices. For example, the PFM program manager at one installation identified a particular car financing business as predatory, but the PFM program manager at another installation sometimes directs servicemembers to this same business when they have had past credit problems that limit their loan options. Fourth, legal assistance attorneys on some of the installations we visited told us that lenders and other businesses are free to advertise in the newspapers. A potential negative effect of the confusion regarding whether businesses are approved and endorsed by the installation is that servicemembers may use types of businesses that DOD policy officials have determined to be predatory, rather than seeking assistance through alternatives such as military relief/aid societies identified by the installation PFM program manager and staff. Servicemembers Do Not Make Full Use of Free DOD - Provided Legal Assistance for Financial Issues Servicemembers do not take full advantage of free DOD -provided legal assistance on contracts and other financial documents. Legal assistance attorneys at the 13 installations we visited stated that servicemembers rarely seek their assistance before entering into financial contracts for goods or services such as purchasing cars or lifetime film developing. Page 15 GAO.05-349 Predatory Lending 00036 The attorneys said that servicemembers are more likely to seek their assistance after encountering problems such as the following selected examples: • Used car dealers offered low interest rates for financing a vehicle, but the contract stated that the interest rate could be converted to a higher rate later if the lender did not approve the loan. Servicemembers were later called to sign a new contract with a higher rate. By that time, some servicemembers found it difficult to terminate the transaction because their trade-in vehicles had been sold. • Used car dealers refused to allow servicemembers to take their contracts to a legal assistance attorney for review. In one such instance, a servicemember signed a contract to pay $30,000 for a car with a blue book value of $12,000. • A company used car titles as collateral on loans and required servicemembers to provide an extra set of keys to the cars so that they could be easily repossessed if the loans were not paid. This type of transaction can result in triple -digit interest. During our interviews, legal assistance attorneys said they provide preventive briefings to incoming and deploying servicemembers to address financial issues such as car buying, payday loans, and debt management during deployment. In some cases, they might take actions to assist servicemembers who have financial problems. Depending on the circumstances, they may represent servicemembers in local court involving consumer cases that affect the military community. In addition, while most legal assistance attorneys do not represent servicemembers in bankruptcy cases, they may provide servicemembers with information on bankruptcy, advice about whether filing is appropriate, and a reference to an off - installation civilian attorney. Legal assistance attorneys, as well as other personnel in our interviews and focus groups, noted reasons why servicemembers might not take greater advantage of the free legal assistance before entering into business agreements. They stated that junior enlisted servicemembers who want their purchases or loans immediately may not take the time to visit the attorney's office for such a review. Additionally, the legal assistance attorneys noted that servicemembers feared information would get back to the command about their financial problem and limit their career progression. Page 16 GAO-05-349 Predatory Lending 00037 DOD Is Exploring On - Installation Alternatives to Payday Loans DOD, service, and installation officials are exploring on -installation alternatives to payday loans for those servicemembers with financial problems. In 2004, DOD said it surveyed approximately 150 defense credit unions and received responses from 48. Of those responding, which may not be representative of all defense credit unions due to the low response rate, 29 credit unions said that they offer an alternative to payday lending. The alternatives, which can be shared with other on -installation credit unions and banks as well as PFM program managers and command financial counselors, included (1) low-cost, short-term lines of credit; (2) short-term signature loans or small unsecured signature loans; and (3) availability of funds 2 days before the servicemember's normal pay date. Some of the PFM program managers at the 13 installations we visited had also worked with on -installation credit unions and banks to obtain payday loan alternatives, which included special loan programs or overdraft protection of up to $500 for customers with "less -than perfect" credit histories. One credit union that we visited advertised a loan alternative called QuickCash, which had an annual percentage rate of 18 percent. To use QuickCash, servicemembers were required to join the credit union, apply for the loan, and have the repayment deducted from their account the following pay period. Some of the on -installation credit unions also offer seminars and training to assist servicemembers in finding lending alternatives. Other alternatives to payday loans include pay advances and military relief/aid society grants and no interest loans to servicemembers.20 Some servicemembers in our focus groups stated that they would not use these types of installation -related alternatives because the alternatives take too long, are intrusive because the financial institution or relief/aid society required in-depth financial information in the loan or grant application, or may be career limiting if the command found out the servicemembers were having financial problems. The Army Emergency Relief Society has attempted to address the time and intrusiveness concerns with its test program, Commander's Referral, for active duty soldiers lacking funds to 20These are provided during emergencies, which include nonreceipt or loss of pay, funeral expenses for dependents, repair of a primary vehicle, and payment of rent to prevent eviction. See AR-930-4, Army Emergency Relief (Aug. 30, 1994) section 2-11 (Categories of authorized emergency financial assistance); and Air Force Instruction 36-3109, Air Force Aid Society (Mar. 5, 2004). The Navy and Marine Corps Relief Society officials said they do not have an instruction. Page 17 GAO.05-349 Predatory Lending 00038 meet monthly obligations of $500 or less. After the commander approves the loans, the servicemembers can expect to receive funds quickly. Noncommissioned officers in our individual interviews and focus groups said the program still does not address servicemembers' fears that revealing financial problems to the command can jeopardize their careers. Conclusions Although we have cited examples where installation commanders changed the predatory practices of businesses by adding or threatening to add the lenders to an off-limits list, other installation commanders we visited have made only limited use of their Armed Forces Disciplinary Control Board for such purposes. The fact that some boards have not met for a year or more seems to run contrary to DOD, service, and installation efforts to curb the use and effects of predatory lending practices. As we have discussed, failure to utilize this valuable tool fully and appropriately for curbing unfair or illegal commercial or consumer practices can have negative, but difficult -to -quantify, consequences on servicemembers' finances as well as unit morale and readiness. Furthermore, although military installations appear to be meeting current requirements regarding disclaimers for advertisements in installation publications, the location of the disclaimer has resulted in unclear messages to some servicemembers about whether inclusion of certain advertisements constitutes approval or endorsement of the business by DOD. In addition, some servicemembers have been confused when the content of some advertisements is contrary to official DOD statements regarding the use of lenders who may use predatory lending practices. This confusion is particularly problematic because it may harm DOD's efforts to reduce the use and effects of predatory lending practices. Recommendations for Executive Action We are making the following two recommendations to the Secretary of Defense: • To improve DOD's ability to curb the use and effects of predatory lending practices, we recommend that the Secretary of Defense direct the Under Secretary of Defense for Personnel and Readiness to amend existing regulations to require installation commanders to convene the Armed Forces Disciplinary Control Boards at least semiannually to investigate and make recommendations to commanders on matters related to eliminating conditions which adversely affect the health, safety, morals, welfare, morale, and discipline of the Armed Forces, to Page 19 GAO-05-349 Predatory Lending 00039 include servicemembers' use of lenders who may use predatory lending practices. • To ensure DOD provides servicemembers a clear message about whether it endorses advertisers in official installation newspapers that may use predatory lending practices, we recommend that the Secretary of Defense direct the Assistant Secretary of Defense for Public Affairs to clarify the regulations pertaining to advertisements in installation publications by requiring disclaimers to be more prominent and taking steps to ensure advertisements reflect stated DOD policies regarding what it considers to be predatory lending. Agency Comments and Our Evaluation In written comments on a draft of this report, DOD concurred with our recommendation to clarify regulations pertaining to advertisements in installation publications and partially concurred with our recommendation to amend regulations to require at least semiannual meetings of the Armed Forces Disciplinary Control Boards. In its comments, DOD noted that it is in the initial stages of staffing and coordinating changes to the Armed Forces Disciplinary Control Boards' joint regulations and will take two actions —require boards to meet four (instead of two) times a year and direct that businesses on the off-limits list for one service be off-limits for all services. Although DOD's comments dealt primarily with the issue of payday lending, the intent of our recommendation was to address all types of consumer predatory lending encountered by servicemembers. Moreover, DOD's actions will go even further than our recommendation suggested. DOD also noted that the boards' process would be an ineffectual deterrent against payday lenders for several reasons. For example, it stated that the boards' process would be ineffectual because of the difficulty in providing adequate oversight of all payday lending businesses and noted that installation commanders may have to develop criteria outside of state statutes for the 35 states where payday lending is legal. Our draft report had already noted that boards may have little basis for recommending or threatening to place businesses on an off-limits list when lenders operate within state laws. Our recommendation will (1) require the boards to meet regularly and (2) provide installation commanders additional focus and oversight into conditions that may adversely affect servicemembers on their installations. Implementing our recommendation does not require installation commanders to monitor all payday lending businesses; instead, it is intended to provide commanders with a routine process for reviewing and taking appropriate action against Page 19 GAO-05.349 Predatory Lending 00040 those lenders that adversely affect servicemembers on the commanders' installation. DOD's comments are reprinted in appendix M. DOD also provided technical comments, which we incorporated in the final report as appropriate. As agreed with your office, unless you publicly announce its contents earlier, we plan no further distribution of this report until 30 days after its issue date. At that time we will send copies of the report to the Secretary of Defense and interested congressional committees. We will also make copies available to others upon request. This report will be available at no charge on GAO's Web site at http://www.gao.gov. If you or your staff have any questions regarding this report, please contact me at (202) 512-5559 (stewartd@gao.gov) or Jack E. Edwards at (202) 512- 8246 (edwardsj@gao.gov). Other staff members who made key contributions to this report are listed in appendix IV. Sincerely yours, Derek B. Stewart Director, Defense Capabilities and Management Page 20 GAO-05.349 Predatory Lending 00041 Appendix I Scope and Methodology In addressing the objectives of this engagement on predatory lending, we limited our scope to active duty servicemembers because we have previously issued a number of reports on the compensation, benefits, and pay -related problems of reservists.' While performing our work, we visited 13 installations with high deployment levels, as identified by service officials (see table 1).2 During these site visits to installations in the United States and Germany, special emphasis was given to ascertaining the financial conditions of junior enlisted servicemembers because the Department of Defense (DOD) and service officials have reported that this subgroup is more likely to encounter financial problems. Table 1: Installations in the United States and Germany Where GAO Conducted Site Visits from May to October 2004 Service Installation Army Fort Bragg, North Carolina Fort Campbell, Kentucky Fort Drum, New York Fort Lewis, Washington Fort Stewart, Georgia Ray Barracks, Friedberg, Germany Navy Naval Air Station Jacksonville, Florida Naval Station San Diego, California Marine Corps Camp Lejeune, North Carolina Camp Pendleton, California Air Force Bolling Air Force Base, Washington, D.C. Langley Air Force Base, Virginia Ramstein Air Base, Germany Source: OAO. To address servicemembers use of consumer loans considered to be predatory in nature, we reviewed and analyzed laws, policies, and 'Our work focused on active duty servicemembers. The Related GAO Products section at the end of this report lists several products that focus on reservists and their compensation, benefits, and pay -related problems that result from deployment. "lo facilitate efficient data collection, the data for this engagement were gathered at the same time as those used to prepare GAO-05-348. Page 21 GAO.05.349 Predatory Lending 00042 Appendix I Scope and Methodology directives —such as the Servicemembers Civil Relief Act3 and DOD's Financial Management Regulation 7000.14R, Volume7A. We also reviewed and analyzed lending -related findings and perspectives contained in publications issued by GAO, DOD, Congressional Research Service, Federal Reserve Bank of Philadelphia, Federal Deposit Insurance Corporation, Federal Trade Commission, state government officials, consumer groups (Consumer Federation of America and National Consumer Law Center), and an association that says it represents around 50 percent of payday lenders (Community Financial Services Association of America). We reviewed a 2004 Consumer Federation of America study, which cited 15 states that prohibit or limit payday lending through laws on interest rate caps for small loans, usury laws, or specific prohibitions for check cashers.4 We did not independently verify that these 15 states, in fact, do prohibit this activity, nor did we review laws in the other 35 states. We also contacted the Federal Trade Commission and ascertained that its Military Sentinel database has little information on servicemembers' complaints against businesses. We interviewed DOD and service policy officials, as well as representatives of consumer groups and a payday association. During our 13 site visits, we developed and used structured questionnaires for interviews with seven types of officials: installation leaders, personal financial management (PFM) program managers, command financial counselors, senior noncommissioned officers (pay grades E8 to E9), legal assistance attorneys, chaplains, and relief/aid societies. We used a structured protocol for conducting 60 focus groups with over 400 individuals who met in four homogeneous types of groups: junior enlisted servicemembers (pay grades El to E4), noncommissioned officers (pay grades E5 to E9), company -grade officers (pay grades 01 to 03), and spouses of servicemembers. In addition, we constructed, pretested, and administered a survey to participants in the focus groups to collect supplemental information that may have been difficult to collect in a group setting. We also obtained data from an August 2004 DOD -wide survey' to assess its reliability and determine prevalence rates for four types of loans that DOD says may contain predatory practices. The August '50 U.S.C. App. § 501. 'See Consumer Federation of America, Unsafe and Unsound: Payday Lenders Hide Behind FDIC Bank Charters to Peddle Usury (Washington, D.C.: Mar. 30, 2004). The target population for all active duty Status of Forces Surveys consists of active duty members of the Army, Navy, Marine Corps, and Air Force, excluding National Guard and Reserve members who (1) have at least 6 months of service at the time the questionnaire is first fielded, and are (2) below flag rank. Page 22 GAO-05-349 Predatory Lending 00043 Appendix I Scope and Methodology 2004 survey had a response rate of 40 percent. DOD has conducted and reported on research to assess the impact of this response rate on overall estimates. They found that, among other characteristics, junior enlisted personnel (El to E4), servicemembers who do not have a college degree, and members in services other than the Air Force were more likely to be nonrespondents. We have no reason to believe that potential non -response bias in the estimates, not otherwise accounted for by DOD's research, is substantial for the variables we studied in this report. Therefore, we concluded the data to be sufficiently reliable to address our objectives. We found the data sufficiently reliable to address our objectives. This information was supplemented with information obtained from three group discussions with a total of 50 personnel affiliated with the PFM programs while they attended a November 2004 conference. To assess whether DOD was fully utilizing the tools that it has to curb the use and effects of predatory lending practices, we obtained information from the laws, policies, directives, and reports that were used to address servicemembers' use of loans that DOD considered to be predatory in nature. DOD and service policy officials identified DOD's primary tools for curbing the use and effects of predatory loans. These individuals also supplied their perspectives on how fully utilized those tools were. Similarly, individual interviews and focus groups with others who supplied information on the question related to servicemembers' use of consumer loans also provided their perspectives on how fully the tools were used, the effects of underutili7ing the tools, and possible reasons that some tools were not used more fully. In addition, we examined official installation newspapers to determine whether they contained disclaimers and advertisements for loans that DOD officials say may contain predatory practices. This examination of newspapers was just a cursory review and was not based on any sort of random sampling. Interviews with representatives of on -installation credit unions and national military relief/aid societies provided input about alternatives to payday loans. We performed our work from March 2004 through February 2005 in accordance with generally accepted government auditing standards. Page 23 GAO-05-349 Predatory Lending 00044 Appendix II Predatory Lending Findings from GAO -Led Focus Groups Held at 13 Installations We held focus group sessions at the 13 military installations we visited during the course of this engagement to obtain servicemembers' perspectives on a broad range of topics, including the impact of deployment on servicemembers' finances and the types of lenders military families use, along with the personal financial management (PFM) training and assistance provided to servicemembers by the Department of Defense (DOD) and service programs (see app. I for a list of installations visited). Servicemembers who participated in the focus groups were divided into three groups: junior enlisted personnel (pay grades El through E4), senior enlisted personnel (pay grades E5 through E9), and junior officers (pay grades 01 through 03). Although we requested to meet with servicemembers who had returned from a deployment within the last 12 months, some servicemembers who had not yet deployed also participated in the focus groups. At some installations, we also held separate focus groups with spouses of servicemembers. Most of the focus groups consisted of 6 to 12 participants. We developed a standard protocol, with seven central questions and several follow-up questions, to assist the GAO moderator in leading the focus group discussions. The protocol was pretested during our first installation visit, and, after minor changes, was used at the remaining 12 installations. During each focus group session, the GAO moderator posed questions to participants who, in turn, provided their perspectives on the topics presented. We essentially used the same questions for each focus group, with some slight variations to questions posed to the spouse groups. Questions and sample responses are listed below. We sorted the 2,090 summary statements resulting from the 60 focus groups into categories of themes through a systematic content analysis. First, our staff reviewed the responses and agreed on response categories. Then, two staff members independently placed responses into the appropriate response categories. A third staff member resolved any discrepancies. In this report, we provide focus group participants' statements for only question 5—the one that asked participants about their experiences with predatory lenders.' Before the question was asked we attempted to provide participants with a general context for answering the question by reading 'See GAO-05-348, app. II, for participants' answers on the other six questions asked in the focus groups. Page 24 GAO-05-349 Predatory Lending 00045 Appendix II Predatory Lending Findings from GAO -Led Focus Groups Held at 13 Installations the following information: "Now we would like to talk about specific problems with predatory lenders. These include lenders that charge excessive fees and interest rates and those that lend without regard to borrowers' ability to repay —usually lending to those with limited income or poor or no credit. Some payday lenders and fast checking places that charge high interest rates may fall into this category Or a predatory lender could be a lender that commits outright fraud or deception —for example, falsifying documents or intentionally misinforming the borrowers about the terms of a loan, which may occur with unscrupulous car dealers." The themes and the number of installations for which a statement about a theme was cited are provided in italics below. Also, two examples of the statements categorized in the theme are provided. Only those themes cited at a minimum of three installations are presented. The number of installations —rather than the number of statements —is provided because (1) the focus of this engagement was on DOD -wide issues and (2) a lengthy discussion in a single focus group may have generated numerous comments. 5. What kinds of experiences have your fellow servicemembers or subordinates had with predatory lenders? A. Other issue regarding experiences with predatory lenders (N = 13) • Example: Businesses will tell young Marines that they can buy an item for a certain amount each month. They keep the Marine focused on the low monthly payments and not on the interest rate or the terms of the loan. • Example: Some Marines feel that a business would not take advantage of them because they are in the military. This leads them to be more trusting of the local businesses than they should be, which in turn, leads the businesses to take advantage of them. B. Predatory lender used —car dealers (N = 11) • Example: Most of the participants stated that the car dealerships around base were the worst predatory lenders because they charge high interest rates and often provide cars that are "lemons." They said that most of the sales people at the dealerships are former personnel who know how to talk to servicemembers to obtain their trust. Servicemembers do not expect this. Page 25 GAO-05-349 Predatory Lending 00046 Appendix 11 Predatory Lending Findings from GAO -Led Focus Groups held at 13 Installations • Example: One captain had a Marine in his unit who signed a contract with a car dealer for a loan with a 26 percent interest rate. The captain took the Marine to the Marine Credit Union and got him a new loan with 9.5 percent interest. C. Predatory lender used —payday lenders (N = 10) • Example: A master sergeant got caught in the check -cashing cycle. He would write a check at one payday lender in order to cover a check written at another lender the previous week. • Example: One participant shared that when he was a younger Marine he got caught up with a payday lender. The problem did not resolve itself until he deployed and was not able to go to the lender anymore. D. Reason for using predatory lender —get fast cash and no hassle (N= 10) • Example: People use payday lenders because they are quick and easy. All soldiers have to do is to provide their leave and earnings statement and they get the money. • Example: Most of the participants say they know people that have used a payday lender and those soldiers use them because they have bad credit and can get quick cash. E. Predatory lender targeting —close proximity and clustering around bases (N = 9) • Example: It is almost impossible to be unaware of lenders and dealerships because many are clustered in close proximity to the installation. They also distribute flyers and use pervasive advertising in local and installation papers. • Example: The stores and car lots near the installation have signs that say "El and up approved" or "all military approved" to get the attention of the military servicemembers. Page 26 GAO-06.349 Predatory Lending 00047 Appendix 11 Predatory Lending Findings from GAO -Led Focus Groups Held at 13 Installations F. Command role when contacted by creditors (N = 8) • Example: The noncommissioned officers sometimes offer to go with the junior enlisted to places like car dealers; but, the young soldiers do not take them up on these offers. • Example: One participant said that debt collectors do call his house and the command. He noted that one lender called him nine times in one day and his chief petty officer eventually asked the lender to stop harassing his sailor. G. Predatory lender targeting —advertising in installation/local newspaper (N = 7) • Example: Soldiers are being targeted by predatory lenders in a variety of ways; for example, flyers are left on parked cars at the barracks, advertising is present at installation functions, and words such as "military" are used on every piece of advertising to make the servicemember believe that the company is part of or supported by the military. The servicemember would normally trust lenders associated with the military. • Example: Most predatory lenders have signs that say "Military Approved" or commercials that say the same thing or "El and above approved." H. Reason for using predatory lender —urgent need (N = 6) • Example: Many soldiers use payday lenders because they are in a bind for money and they know these lenders can provide quick cash. • Example: Soldiers will use a payday lender because they need money for a child, the kids, the house payment, etc. In many cases, it does not matter why they need it; they just need it. So, they go where they can get cash the fastest and the easiest way possible. I. Predatory lender used—furniture/rent-to-own (N = 6) • Example: One of the participants stated that he had obtained a loan to purchase a new washer and dryer. The loan had a 55 percent interest rate and the appliances cost a lot more than they should have. Page 27 GAO-05-349 Predatory Lending 00048 Appendix II Predatory Lending Findings from GAO -Led Focus Groups Held at 13 Installations • Example: Rent -to -own businesses are widely used by soldiers. One soldier ended up paying $3,000 for an $800 washer and dryer set. J. No problem with predatory lenders (N = 5) • Example: There have not been any problems with predatory lenders lately. The state of Florida has been using legislation to shut them down. • Example: The participants said that they had never encountered an officer who had to use payday lenders or predatory lenders. According to the participants, most of the officers' problems come when they have a bitter divorce. K. Reason for using predatory lender —other reasons (N = 5) • Example: One soldier stated that his credit was so bad that he had no other option but to use high interest rate lenders. He stated that, "I have bad credit and I will always get bad credit." • Example: One participant said he has several friends that use payday lenders because they are Els or E2s and don't make much money. L. Predatory lender targeting —employing former military members (N = 4) • Example: The people running and working for the predatory businesses are usually former military servicemembers who use their knowledge of the system to take advantage of Marines. • Example: Many times the predatory lenders are veterans, former Marines, or retirees. Using these types of people gives the younger Marines a false sense of trust and then the lenders will take advantage of the servicemember or stab the servicemember in the back. M. Reason for using predatory lender —command will not know financial conditions (N = 3) • Example: When a soldier needs money, a payday loan can be used without notifying the chain of command. Any form of assistance from Page 28 GAO-05-349 Predatory Lending 00049 Appendix II Predatory Lending Findings from GAO -Led Focus Groups Field at 13 Installations the Army requires a soldier to obtain approval from a dozen people before they can get any money. • Example: The most significant reason that people use payday lenders is privacy. The spouses stated that to obtain assistance through the Air Force, you must use the chain of command to obtain approval. By doing so, everyone in the unit will know your business. Page 29 GAO-05-349 Predatory Lending 00050 Appendix III Comments from the Department of Defense OFFICE OF THE UNDER SECRETARY OF DEFENSE 4000 DEFENSE PENTAGON WASHINGTON D C 20301-4000 1.10180.1.16. AND DGD?NE*$ Mr. Derek B. Stewart Director Defense Capabilities and Management U.S. Government Accountability Office Washington, D.C. 20548 APR 1 2 2005 Dear Mr. Stewart: This is the Department of Defense (DoD) response to the GAO draft report, GAO- 05-349, 'MILITARY PERSONNEL: DoD's Tools for Curbing the Use and Effects of Predatory Lending Not Fully Utilized,' dated March 29, 2005 (GAO Code 350661)." Comments on the two draft report recommendations are attached. Sincerely, 94- Jeanne B. Fites Deputy Under Secretary of Defense Program Integration Attachment: As stated Page 30 GAO-05-349 Predatory Lending 00051 Appendix 1II Comments from the Department of Defense tiA0-05-349/GAO CODE 350661 "MILITARY PERSONNEL: DOD'S TOOLS. FOR CURBING TEE USE AND EFFECTS OF PREDATORY LENDING NOT FULLY UTILIZED" DEPARTMENT OF DEFENSE COMMENTS TO THE RECOMMENDATIONS RECOMMENDATION 1; 'Mae GAO recommended that the Secretary of Defense direct the Under Secretary of Defense for Personnel and Readiness to amend existing regulations to require installation commanders to convene the Armed Forces Disciplinary Control Boards at least semiannually to investigate and make recommendations to commanders on matters concerning eliminating conditions which adversely affect the health, safety, morals, welfare, morale, and discipline of the Armed Forces, to include Service members' use of lenders who may use predatory lending practices." . (Page 15/Draft Report) Don RESPONSE: PARTIALLY CONCUR: This recommendation may inhibit the impact of payday lending in isolated situations, since the Armed Forces Disciplinary Control Board (AFDCB) provides a process that highlights issues with specific locations and proprietors, allowing an opportunity for the proprietor to take corrective action. However, due to the business model employed by payday lenders, the difficulty in providing adequate oversight of these businesses, and their prevalence outside military installations, the AFDCB process would be an ineffectual deterrent, even when fully deployed as defined in this recommendation. Business Model: Payday lenders provide short term loans, without credit checks, at annual interest rates at or above 390%. These small loans cost the consumer approximately $15 - $20 per $100 borrowed, if the loan is paid at the end of the two - week loan period. These loans become predatory as they are rolled -over, or as individuals engage in multiple loans of $300 - $500. The impact of roll-overs or multiple loans is to extend the individual far beyond their ability to payback the interest and principle, capturing the individual in a spiral of debt. These activities are legal in 35 states and would require the local command to develop criteria other than the state statutes to determine if the payday lender should be made off limits. The current Community Financial Services Association (CFSA) best practices mentioned in the report are not adequate criteria for determining acceptability. For example, the GAO report states that CFSA beat practices limit the number of roll-over loans allowed. Their limit is 4 roll-overs, which produces an interest rate of 60% - 70%, which is unacceptable. For example, cost to a Service member for a loan for 8 weeks (4 roll- overs) for $500 would be approximately $300 - $350. The Department of Defense is prepared to develop criteria that would prohibit roll-over and multiple loans. Providing Adequate Oversight: Developing criteria outside of state statutes places the Department of Defense in the position of regulating business practices off of the Page 31 GAO-05-343 Predatory Lending 00052 Appendix III Comments from the Department of Defense installation. Other similar situations, such as the monitoring of commercial insurance, have proven costly to administer, unpopular with both legislators and the industries concerned, and ineffectual due to limited surveillance capability. Surveillance, in order to ensure compliance with DoD regulations, would require local commands to periodically review each location in order to determine whether the outlet maintains programs within the criteria of the Department, or whether they have deterred Service members and their family members from using their products and services. In each circumstance, the Department has no legal recourse, other than making the facility off limits. if the location, having been made off limits, continues to offer products and services to Service members and thew family members, local commands have no legal recourse to limit their activities. AFDCB Processes Would Be ineffectual: Finally, the AFDCB is established to review and consider whether to place a single location off-limits, as exemplified in the GAO report. Research accomplished by Steven M. Graves, Assistant Professor of Geography, California State University, Northridge, and Christopher L. Peterson, Assistant Professor of Law, University of Florida, Fredric G. Levin College of Law, illustrates that the number of payday lending outlets around military installations would overwhelm a process designed to review one location at a time. The chart, at Tab A, provides examples of the number of payday lending outlets in the top 30 counties and zip codes for payday lenders in 20 states, many of which are adjacent to military installations. In many cases there are over 50 payday lenders located around military installations. A process that requires a board to review so many locations on an individual basis would be unwieldy. To take action against one location and leave scores of other locations open to provide payday loans would have little impact on the problem. To consider evaluating all locations around a military installation as a single case would eliminate much of the due - process required in an AFDCB review, where the business is allowed to submit a letter to the Board and to negotiate a process that would allow the business to stay off of the off- limits list. Allowing one location to negotiate in an evaluation encompassing all locations around a military installation would require individual review of each location. The business model established by payday lenders does not leave much room for negotiation. The local military command would have to establish rules, beyond state statutes and industry best practices, as the criteria for allowing payday lenders to remain opcn to military customers. The Department is not in the position to establish regulations to limit payday lenders and to provide the necessary oversight to ensure they comply. Furthermore the number of payday lenders around military installations makes the AFDCB process unwieldy for the purpose of reviewing and potentially making payday lenders off -limit businesses. The Department has included payday lending as one of its top issues to discuss with state governments to encourage policies and statutes that assist and protect Service members and their families. Through the National Governors Association, the National Conference of State Legislature, the Conference of State Governments and American Legislative Exchange Council, as well as responding to representatives from several states, the Department has made legislators and administrators aware of its conecros over 2 Page 32 GAO-05-349 Predatory Lending 00053 Appendix III Comments from the Department of Defense payday lending. The Department has been encouraged to sec several states have considered legislation to limit multiple and roll-over loans, limit annual percentage rates, and develop practices that allow Service members to negotiate more acceptable payback terms through credit counseling agencies. Through partnership with state governments, the appropriate agency can maintain the laws of the state to ensure Service members and their families are not abused by off -installation establishments. Additionally, the rapid increase of payday leading in the past 15 years and its multistate nature suggest the need for strong federal legislation to limit or eradicate this high -cost form of borrowing that impacts all low-income consumers, not just low -ranking military members. Also, beyond the specific problem of payday lending, two changes to the Armed Forces Disciplinary Control Board's (AFDCBs) Joint regulation are in the initial stages of staffing and coordination by the executive agent for AFDCBs, the Anny's Office of the Provost Marshall General. These changes are: I) Direct that the AFDCBs meet quarterly to better engage the board and its constituent organizations in eliminating conditions that adversely affect the health, safety, morale, welfare, and discipline of the Armed Forces. 2) Direct that when one Service places abusiness "off limits," the rule will apply to all Services. RECOMMENDATION 2i The GAO recommended that the Secretary of Defense direct the Assistant Secretary of Defense for Public Affairs to clarify the regulations pertaining to advertisements in installation publications by requiring disclaimers to be more prominent and taking steps to ensure advertisements reflect stated DoD policies regarding what it considers to be predatory lending. (Page 15/Draft Report) DoD RESPONSE: CONCUR 3 Page 33 GAO-05-349 Predatory Lending 00054 Appendix III Comments from the Department of Defense TAB Analysis from "Predatory Lending and the Military: The Law and Geography of "Payday" Loans In MII tary Towns State Installation Number of payday lending locations Within adjacent counties Within adjacent zip codes Alabama Fort Rucker 68 42 Maxwell APB 96 19 Redstone Arsenal 90 14 Arizona Luke AFB 49 Davis Monthan AFB 37 California .Twenty -Nine Palms USMC • 161 7 NAS Lemoore 90 13 Edwards AFB 59 NSSanDiego 238 28 Camp Pendleton USMC 117 22 Los Angeles AS 671 5 Travis AFB 30 Beale AFB 5 Port Hueneme 34 Vandenberg AFB 19 Colorado Fort Carson 179 46 Peterson AFB 129 36 Schriever AFB 129 Buckley AFB 366 51 USAF Academy 7 Delaware Dover AFB 30 23 Florida NAS Jacksonville 88 21 NS Mayport 77 10 MacDill APB 138 15 NAS Pensacola 22 Eglin AFB 17 Tyndall 5 Idaho Mountain Home 4 Kentucky Fort Campbell 18 8 Fort Knox 22 44 Louisiana Barksdale AFB 67 45 Fort Polk 14 14 Missouri Fort Leonard Wood 36 8 Whiteman AFB 4 North Carolina Seymour Johnson 30 11 NCAS Cherry Point 19 6 Camp LeJeune 14 10 Fort Bragg/Pope AFB 39 25 4 Page 34 GAO-06-349 Predatory Lending 00055 Appendix III Continents from the Department of Defense Ohio Wright -Patterson AFB 30 17 Oklahoma Tinker AFB 124 53 Vance AFB 8 Altus AFB 4 Fort Sill 10 7 South Carolina Shaw AFB 37 30 MC Beaufort/Parris Island 21 4 Charleston AFB 95 44 Fort Jackson 72 45 South Dakota Ellsworth AFB 42 40 Tennessee Millington 32 Milan Arsenal 8 Texas Sheppard AFB 22 12 NAS Corpus Christi 45 12 Fort Bliss 61 19 Goodfellow AFB 14 8 Fort Hood 4 9 Lackland AFB 124 9 Fort Sam Houston 124 19 Randolph AFB 124 Virginia FortLec 5 9 Norfolk 230 50 Fort Eustis 41 7 Langley AFB 68 25 Fort Story 102 11 Washington Fairchild AFB 55 32 Fort Lewis 75 24 NS Bremerton 169 6 McChord AFB 11 42 NS Everett 173 2 NAS Whidbey Island 23 5 Page 36 GAO-05-349 Predatory Lending 00056 Appendix IV GAO Contact and Staff Acknowledgments GAO Contact Jack E. Edwards (202) 512-8246 Acknowledgments In addition to the individual named above, Leslie Bharadwaja, Alissa Czyz, Marion A. Gatling, Gregg Justice, III, David Mayfield, Brian Pegram, Minette Richardson, Terry Richardson, and Allen Westheimer made key contributions to this report. Page 36 GA0-06-349 Predatory Lending 00057 Appendix V Related GAO Products Military Personnel: More DOD Actions Needed to Address Servicemembers' Personal Financial Management Issues. GAO-05-348. Washington, D.C.: April 26, 2005. Credit Reporting Literacy: Consumers Understood the Basics but Could Benefit from Targeted Educational Efforts. GAO-05-223. Washington, D.C.: March 16, 2005. DOD Systems Modernization: Management of Integrated Military Human Capital Program Needs Additional Improvements. GAO-05-189. Washington, D.C.: February 11, 2005. Highlights of a GAO Forum: The Federal Government's Role in Improving Financial Literacy. GAO-05-93SP. Washington, D.C.: November 15, 2004. Military Personnel: DOD Needs More Data Before It Can Determine if Costly Changes to the Reserve Retirement System Are Warranted. GAO- 04-1005. Washington, D.C.: September 15, 2004. Military Pay: Army Reserve Soldiers Mobilized to Active Duty Experienced Significant Pay Problems. GAO-04-911. Washington, D.C.: August 20, 2004. Military Pay: Army Reserve Soldiers Mobilized to Active Duty Experienced Significant Pay Problems. GAO-04-990T. Washington, D.C.: July 20, 2004. Military Personnel: Survivor Benefits for Servicemembers and Federal, State, and City Government Employees. GAO-04-814. Washington, D.C.: July 15, 2004. Military Personnel: DOD Has Not Implemented the High Deployment Allowance that Could Compensate Servicemembers Deployed Frequently for Short Periods. GAO-04-805. Washington, D.C.: June 25, 2004. Military Personnel: Active Duty Compensation and Its Tax Treatment. GAO-04-721R. Washington, D.C.: May 7, 2004. Military Personnel: Observations Related to Reserve Compensation, Selective Reenlistment Bonuses, and Mail Delivery to Deployed Troops. GAO-04-582T. Washington, D.C.: March 24, 2004. Page 37 GAO-05.349 Predatory Lending 00058 • Appendix V Related GAO Products Military Personnel: Bankruptcy Filings among Active Duty Service Members. GAO-04-465R. Washington, D.C.: February 27, 2004. Military Pay: Army National Guard Personnel Mobilized to Active Duty Experienced Significant Pay Problems. GAO-04-413T. Washington, D.C.: January 28, 2004. Military Personnel: DOD Needs More Effective Controls to Better Assess the Progress of the Selective Reenlistment Bonus Program. GAO-04-86. Washington, D.C.: November 13, 2003. Military Pay: Army National Guard Personnel Mobilized to Active Duty Experienced Significant Pay Problems. GAO-04-89. Washington, D.C.: November 13, 2003. Military Personnel: DFAS Has Not Met All Information Technology Requirements for Its New Pay System. GAO-04-149R. Washington, D.C.: October 20, 2003. Military Personnel: DOD Needs More Data to Address Financial and Health Care Issues Affecting Reservists. GAO-03-1004. Washington, D.C.: September 10, 2003. Military Personnel: DOD Needs to Assess Certain Factors in Determining Whether Hazardous Duty Pay Is Warranted for Duty in the Polar Regions. GAO-03-554. Washington, D.C.: April 29, 2003. Military Personnel: Management and Oversight of Selective Reenlistment Bonus Program Needs Improvement. GAO-03-149. Washington, D.C.: November 25, 2002. Military Personnel: Active Duty Benefits Reflect Changing Demographics, but Opportunities Exist to Improve. GAO-02-935. Washington, D.C.: September 18, 2002. (350661) Page 38 GAO-05-349 Predatory Lending 00059 GAO's Mission The Government Accountability Office, the audit, evaluation and investigative arm of Congress, exists to support Congress in meeting its constitutional responsibilities and to help improve the performance and accountability of the federal government for the American people. GAO examines the use of public funds; evaluates federal programs and policies; and provides analyses, recommendations, and other assistance to help Congress make informed oversight, policy, and funding decisions. GAO's commitment to good government is reflected in its core values of accountability, integrity, and reliability. Obtaining Copies of GAO Reports and Testimony The fastest and easiest way to obtain copies of GAO documents at no cost is through GAO's Web site (www.gao.gov). Each weekday, GAO posts newly released reports, testimony, and correspondence on its Web site. 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Orders should be sent to: U.S. Government Accountability Office 441 G Street NW, Room LM Washington, D.C. 20548 To order by Phone: Voice: (202) 512-6000 TDD: (202) 512-2537 Fax: (202) 512-6061 To Report Fraud, Waste, and Abuse in Federal Programs Contact: Web site: www.gao.gov/fraudnet/fraudnet.htm E-mail: fraudnet@gao.gov Automated answering system: (800) 424-5454 or (202) 512-7470 Congressional Relations Gloria Jarmon, Managing Director, JarmonG@gao.gov (202) 512-4400 U.S. Government Accountability Office, 441 G Street NW, Room 7125 Washington, D.C. 20548 Public Affairs Paul Anderson, Managing Director, AndersonPl@gao.gov (202) 512-4800 U.S. Government Accountability Office, 441 G Street NW, Room 7149 Washington, D.C. 20548 PRINTED ON � RECYCLED PAPER 00060 SB 157.html Page 1 of 7 Legislation + House+ Senate + Information + Offices + Home 04 SB157/AP Senate Bill 157 By: Senators Cheeks of the 23rd, Cagle of the 49th, Stephens of the 51st and Starr of the 44th AS PASSED AN ACT To amend Code Section 7-3-29 of the Official Code of Georgia Annotated, relating to penalties for violations of the "Georgia Industrial Loan Act," so as to allow class actions to be brought against unlicensed lenders; to amend Title 16 of the Official Code of Georgia Annotated, relating to crimes and offenses, so as to include payday lending in the definition of racketeering activity; to declare a legislative intent to prohibit activities commonly referred to as payday lending, deferred presentment services, or advance cash services and other similar activities; to strengthen and increase the criminal and civil penalties therefor; to void payday lending loans; to declare that forum selection clauses in payday lending contracts are unenforceable in Georgia; to provide that it shall be unlawful to engage in the business of making certain small loans; to provide for exemptions for licensed and regulated activities; to define crimes and declare penalties; to provide for civil remedies of borrowers; to provide for civil penalties; to provide for collection of civil penalties in actions by the state or by private parties; to declare a tax on profits from payday loans; to declare sites or locations on which payday lending is taking place to be public nuisances; to provide disclosure and notice requirements regarding loans made to members of the military; to provide for severability; to provide for related matters; to provide an effective date; to repeal conflicting laws; and for other purposes. BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: SECTION 1. Code Section 7-3-29 of the Official Code of Georgia Annotated, relating to penalties for violations of the "Georgia Industrial Loan Act," is amended by striking subsection (e) and inserting in its place the following: "(e) A claim of violation of this chapter against a duly licensed lender may be asserted in an individual action only and may not be the subject of a class action under Code Section 9-11- 23 or any other provision of law. A claim of violation of this chapter against an unlicensed lender may be asserted in a class action under Code Section 9-11-23 or any other provision of law." http://www.legis.state.ga.us/legis/2003_04/fulltext/sb157.htm 0 0 0 615/26/2005 SB 157.htm1 Paget of 7 SECTION 2. Title 16.of the Official Code of Georgia Annotated, relating to crimes and offenses, is amended in Code Section 16-14-3, relating to definitions concerning racketeer influenced organizations, by striking divisions (9)(A)(xxxvi) and (9)(A)(xxxvii) and inserting in lieu thereof the following: (xxxvi) Article 8 of Chapter 9 of this title, relating to identity fraud, and Section 1028 of Title 18 of the United States Code, relating to fraudulent identification documents and information; (xxxvii) Code Section 33-1-9, relating to insurance fraud; or (xxxviii) Code Section 16-17-2, relating to payday loans." SECTION. 3. Said title is further amended by adding a new Chapter 17 to read as follows: "CHAPTER 17 16-17-1. (a) Without limiting in any manner the scope of this chapter, 'payday lending' as used in this chapter encompasses all transactions in which funds are advanced to be repaid at a later date, notwithstanding the fact that the transaction contains one or more other elements and a 'payday lender' shall be one who engages in such transactions. This definition of 'payday lending' expressly incorporates the exceptions and examples contained in subsections (a) and (b) of Code Section 16-17-2. (b) Despite the fact that the Attorney General of the State of Georgia has opined in Official Opinion 2002-3 entered on June 27, 2002, that payday lending is in violation of Georgia law and despite the fact that the Industrial Loan Commissioner has issued cease and desist orders against various payday lenders in the State of Georgia, the General Assembly has determined that payday lending continues in the State of Georgia and that there are not sufficient deterrents in the State of Georgia to cause this illegal activity to cease. (c) The General Assembly has determined that various payday lenders have created certain schemes and methods in order to attempt to disguise these transactions or to cause these transactions to appear to be 'loans' made by a national or state bank chartered in another state in which this type of lending is unregulated, even though the majority of the revenues in this lending method are paid to the payday lender. The General Assembly has further determined that payday lending, despite the illegality of such activity, continues to grow in the State of Georgia and is having an adverse effect upon military personnel, the elderly, the economically disadvantaged, and other citizens of the State of Georgia. The General Assembly has further determined that substantial criminal and civil penalties over and above those currently existing under state law are necessary in order to prohibit this activity in the State of Georgia and to cause the cessation of this activity once and for all. The General Assembly further declares that these types of loans are currently illegal and are in violation of Code Section 7-4-2. The General Assembly declares that the use of agency or partnership agreements between in -state entities and out-of-state banks, whereby the in -state agent holds a predominant economic interest in the revenues generated by payday loans made to Georgia residents, is a scheme or contrivance by which the agent seeks to circumvent Chapter 3 of http://www.legis.state.ga.us/legis/2003_04/fulltext/sb157.htm 000 6 2/26/2005 SB157.html Page 3 of 7 Title 7, the 'Georgia Industrial Loan Act,' and the usury statutes of this state. (d) Payday lending involves relatively small loans and does not encompass loans that involve interstate commerce and certain payday lenders have attempted to use forum selection clauses contained in payday loan documents in order to avoid the courts of the State of Georgia, and the General Assembly has determined that such practices are unconscionable and should be prohibited. (e) Without limiting in any manner the scope of this chapter, the General Assembly declares that it is the general intent of this chapter to reiterate that in the State of Georgia the practice of engaging in activities commonly referred to as payday lending, deferred presentment services, or advance cash services and other similar activities are currently illegal and to strengthen the penalties for those engaging in such activities. (f) This chapter in no way impairs or restricts the authority granted to the commissioner of banking and finance, the Industrial Loan Commissioner, or any other regulatory authority with concurrent jurisdiction over the matters stated in this chapter. 16-17-2. (a) It shall be unlawful for any person to engage in any business, in whatever form transacted, including, but not limited to, by mail, electronic, the Internet, or telephonic means, which consists in whole or in part of making, offering, arranging, or acting as an agent in the making of loans of $3,000.00 or less unless: (1) Such person is engaging in financial transactions permitted pursuant to: (A) The laws regulating financial institutions as defined under Chapter 1 of Title 7, the 'Financial Institutions Code of Georgia'; (B) The laws regulating state and federally chartered credit unions; (C) Article 13 of Chapter 1 of Title 7, relating to Georgia residential mortgages; (D) Chapter 3 of Title 7, the 'Georgia Industrial Loan Act'; (E) Chapter 4 of Title 7, relating to interest and usury; (F) Chapter 5 of Title 7, 'The Credit Card and Credit Card Bank Act,' including financial institutions and their assignees who are not operating in violation of said chapter; or (G) Paragraph (2) of subsection (a) of Code Section 7-4-2 in which the simple interest rate is not greater than 16 percent per annum; (2) Such loans are lawful under the terms of: (A) Article 1 of Chapter 1 of Title 10, 'The Retail Installment and Home Solicitation Sales Act'; (B) Article 2 of Chapter 1 of Title 10, the 'Motor Vehicle Sales Finance Act'; or (C) Part 5 of Article 3 of Chapter 12 of Title 44, relating to pawnbrokers; (3) Subject to the provisions of paragraph (4) of subsection (b) of this Code section, such person is a bank or thrift chartered under the laws of the United States, a bank chartered under the laws of another state and insured by the Federal Deposit Insurance Corporation, or a credit card bank and is not operating in violation of the federal and state laws applicable to its charter; or (4) Such loan is made as a tax refund anticipation loan. In order to be exempt under this paragraph the tax refund anticipation loan must be issued using a borrower's filed tax return and the loan cannot be for more than the amount of the borrower's anticipated tax refund. Tax returns that are prepared but not filed with the proper government agency will not http://www.legis.state.ga.us/legis/2003_04/fulltext/sb 157.htm 00063 5/26/2005 SB 1.57.htmi.. Page 4 of 7 qualify for a loan exemption under this paragraph. (b) Subject to the exceptions in subsection (a) of this Code section, this Code section shall apply withrespect to all transactions in which funds are advanced to be repaid at a later date, notwithstanding the fact that the transaction contains one or more other elements. Without limiting the generality of the foregoing, the advance of funds to be repaid at a later date shall be subject to this Code section, notwithstanding the fact that the transaction also involves: (1) The cashing or deferred presentment of a check or other instrument; (2) The selling or providing of an item, service, or commodity incidental to the advance of funds; (3) Any other element introduced to disguise the true nature of the transaction as an extension of credit; or (4) Any arrangement by which a de facto lender purports to act as the agent for an exempt entity. A purported agent shall be considered a de facto lender if the entire circumstances of the transaction show that the purported agent holds, acquires, or maintains a predominant economic interest in the revenues generated by the loan. (c)(1) A payday lender shall not include in any loan contract made with a resident of this state any provision by which the laws of a state other than Georgia shall govern the terms and enforcement of the contract, nor shall the loan contract designate a court for the resolution of disputes concerning the contract other than a court of competent jurisdiction in and for the county in which the borrower resides or the loan office is located. (2) An arbitration clause in a payday loan contract shall not be enforceable if the contract is unconscionable. In determining whether the contract is unconscionable, th.e court shall consider the circumstances of the transaction as a whole, including but not limited to: (A) The relative bargaining power of the parties; (B) Whether arbitration would be prohibitively expensive to the borrower in view of the amounts in controversy; (C) Whether the contract restricts or excludes damages or remedies that would be available to the borrower in court, including the right to participate in a class action; (D) Whether the arbitration would take place outside the county in which the loan office is located or any other place that would be unduly inconvenient or expensive in view of the amounts in controversy; and (E) Any other circumstance that might render the contract oppressive. (d) Any person who violates subsection (a) or (b) of this Code section shall be guilty of a misdemeanor of a high and aggravated nature and upon conviction thereof shall be punished by imprisonment for not more than one year or by a fine not to exceed $5,000.00 or both. Each loan transaction shall be deemed a separate violation of this Code section. Any person who aids or abets such a violation, including any arbiter or arbitration company, shall likewise be guilty of a misdemeanor of a high and aggravated nature and shall be punished as set forth in this subsection. If a person has been convicted of violations of subsection (a) or (b) of this Code section on three prior occasions, then all subsequent convictions shall be considered felonies punishable by a fine of $10,000.00 or five years imprisonment or both. 16-17-3. Any person who violates subsection (a) or (b) of Code Section 16-17-2 shall be barred from the collection of any indebtedness created by said loan transaction and said transaction shall http://www.legis.state.ga.us/lcgis/2003_04/fulltext/sb157.htm 00064 5/26/2005 SB 157.html Page 5 of 7 be void ab initio, and any person violating the provisions of subsection (a) or (b) of Code Section 16-17-2 shall in addition be liable to the borrower in each unlawful transaction for three times the amount of any interest or other charges to the borrower. A civil action under Code Section 16-17-2 may be brought on behalf of an individual borrower or on behalf of an ascertainable class of borrowers. In a successful action to enforce the provisions of this chapter, a court shall award a borrower, or class of borrowers, costs including reasonable attorneys' fees. 16-17-4. (a) Any person who violates subsection (a) or (b) of Code Section 16-17-2 shall be liable to the state for a civil penalty equal to three times the amount of any interest or charges to the borrowers in the unlawful transactions. (b) A civil action under Code Section 16-17-2 may be brought by the Attorney General, any district attorney, or a private party. Where a successful civil action is brought by a district attorney one-half of the damages recovered on behalf of the state shall be distributed to the office of the district attorney of the judicial circuit of such district attorney to be used by the district attorney in order to fund the budget of that office. 16-17-5. (a) There is imposed a state tax on all loans made in violation of this chapter. Such tax shall be administered and collected in connection with the Georgia income taxation of the person making such loans and shall be in addition to any other tax liability of such person. (b) The tax imposed by this Code section shall be at the rate of 50 percent of all proceeds received by a person from loans made in violation of this chapter. (c) A person making loans in violation of this chapter shall declare and return the proceeds subject to taxation under this Code section as a part of such person's Georgia income tax return. (d) The state revenue commissioner shall retain returns under this Code section apart from all other returns and shall not disclose any part of such a return for any purpose other than the collection of tax owed or a criminal prosecution involving tax matters. In a criminal proceeding under this chapter, a person's return of proceeds under this Code section and any evidence derived as a result of such return shall not be admissible. 16-17-6. In regard to any loan transaction that is alleged to be in violation of subsection (a) of Code Section 16-17-2, the trial court shall be authorized to review the terms of the transaction in their entirety in order to determine if there has been any contrivance, device, or scheme used by the lender in order to avoid the provisions of subsection (a) of Code Section 16-17-2. The trial court shall not be bound in making such determination by the parol evidence rule or by any written contract but shall be authorized to determine exactly whether the loan transaction includes the use of a scheme, device, or contrivance and whether in reality the loan is in violation of the provisions of subsection (a) of Code Section 16-17-2 based upon the facts and evidence relating to that transaction and similar transactions being made in the State of Georgia. If any entity involved in soliciting or facilitating the making of payday http://www.legis.state.ga.us/legis/2003_04/fulltext/sb157.htm 00065 5/26/2005 SB 1.57.htmi Page 6 of 7 loans purports to be acting as an agent of a bank or thrift, then the court shall be authorized to determine whether the entity claiming to act as agent is in fact the lender. Such entity shall be presumed to be the lender if, under the totality of the circumstances, it holds, acquires, or maintains a predominant economic interest in the revenues generated by the loan. Furthermore, the trial court shall further be authorized to investigate all transactions involving gift cards, telephone cards, the sale of goods or services, computer services, or the like which may be tied to such loan transactions and are an integral part thereof in order to determine whether any such transaction is in fact a contrivance, scheme, or device used by the payday lender in order to evade the provisions of subsection (a) of Code Section 16-17- 2. 16-17-7. All corporations, limited liability companies, or other business entities which are engaged in payday lending in the State of Georgia are prohibited from obtaining any certificate of authority from the Secretary of State or from the Department of Banking and Finance and engaging in such payday lending activity in the State of Georgia shall result in the revocation of any existing certificate of authority. 16-17-8. The site or location of a place of business where payday lending takes place in the State of Georgia is declared a public nuisance. 16-17-9. (a) In addition to the other obligations and duties required under this chapter, if the customer is a member of the military services of the United States or a spouse of a member of the military services of the United States, the following duties and obligations apply to any payday lender: (1) The lender is prohibited from garnishment of any military wages or salaries; (2) The lender is prohibited from conducting any collection activity against a military customer or his or her spouse when the military member has been deployed to a combat or combat support posting for the duration of the deployment; (3) The lender is prohibited from contacting the commanding officer of a military customer in an effort to collect on a loan to the military member or his or her spouse; (4) The lender agrees to be bound by the terms of any repayment agreement that it negotiates through military counselors or third -party credit counselors; and (5) The lender agrees to honor any statement or proclamation by a military base commander that a specific payday lender branch location has been declared off limits to military personnel and their spouses. (b) If the customer is a member of the military services of the United States or a spouse of a member of the military services of the United States, the following disclosures shall be made in writing by the payday lender: (1) A notice that the lender is prohibited from garnishment of any military wages or salaries; (2) A notice that the lender is prohibited from conducting any collection activity against a military customer or his or her spouse when the military member has been deployed to a http://www.legis.state.ga.us/legis/2003_04/fulltext/sb157.htm 00066 5/26/2005 SB157.html Page 7 of 7 combat or combat support posting for the duration of the deployment; (3) A notice that the lender is prohibited from contacting the commanding officer of a military customer in an effort to collect on a loan to the military member or his or her spouse; (4) A notice that the lender agrees to be bound by the terms of any repayment agreement that it negotiates through military counselors or third -party credit counselors; and (5) A notice that the lender agrees to honor any statement or proclamation by a military base commander that a specific payday lending branch location has been declared off limits to military personnel and their spouses. 16-17-10. If any provision of this chapter or the application of such provision is found by a court of competent jurisdiction in the United States to be invalid or is found to be superseded by federal law, then the remaining provisions of this chapter shall not be affected, and this chapter shall continue to apply to any other person or circumstance." SECTION 4. This Act shall become effective on May 1, 2004. SECTION 5. All laws and parts of laws in conflict with this Act are repealed. http://www.legi s. state. ga.us/legis/2003_04/fulltext/sb 157.htm 00067 5/26/2005 SE 1.57 - The Georgia Payday Lending Law (2004) -- Center for Responsible Lending Page 1 of 1 RESPONSIBLE {, 111�y k U 4 R RESPONSIBL. LENDING A RESOURCE FOR PREDATORY LENDING OPPONENTS News Archive Take Action Site Map Predatory ► SB 157 - The Georgia Payday Lending Law Mortgage Lending (2004) Payday Lending ► Overview Payday Lending Basics Nine Signs of a Predatory Payday Loan Fact v. Fiction: Payday Industry Claims Alternatives to Payday Lending Payday Lending Legislation 2004 Payday Lending Research Payday Lending Victims Other Abusive 10. Financial Practices Predatory Lending ► and North Carolina Research Lihrary ► Federal & State ► Update For Cot About the Center for ► Responsible Lending �i,CRL 4EW H'iEE. Stay Informed. Sign up now to receive news and updates from CRL. Share your experience with predatory loans. » GEORGIA PROTECTS CONSUMERS WITH STRONG PAYDAY LENDING LAW A new Georgia law prescribes harsh felony penalties for lenders who make loans of $3,000 or less in violation of Georgia's existing lending and consumer protection laws. Passed with bipartisan support and signed by Gov. Perdue in April 2004, SB 157 caps small consumer loans at 60 percent per year, Georgia's small loan usury rate. The law explicitly bars non -bank lenders from partnering with out-of-state banks in order to avoid Georgia's usury limit. Four out-of-state banks that make loans through Georgia payday lenders have filed lawsuits in federal court challenging the Georgia law. CRL and other advocacy groups including AARP, the Consumer Federation of America, the National Consumer Law Center, and Georgia Watch have filed amicus curiae briefs supporting the Georgia law. For more information on this important legislation: Text of SB 157 the Georgia Payday Lending law. Summary SB 157, the Georgia Payday Lending law. © Copyright 2005 Center for Responsible Lending. All Rights Reserved. i Privacy Policy 1 • NEWS HEADLIN1 • Payday loans c help -- at a prii Seattle Post -In 5/24/05 • Paying More Ft Loans? CBS News, 5/1 • Payday loan bil House Austin America Statesman, 5/: • All Payday 1-lea A HOTTEST TOPIC • CRL Paper: Th( Overdraft Loan (pdf, 05/26/05 • Eakes Testifies Predatory Lena Legislation (pd • CitiFinancial UE Industry-Leadi Practices (05/1 • Car Title Lendii Secured by Cai Borrowers in D (04/14/05) • House Bills on Lending (H.R.' H.R. 1295) (03 JOB OPENINGS http://www.responsiblelending.org/payday/p1 1eg2004. cfm 00068 5/26/2005 The N.C. Payday Lending -- Center for Responsible Lending Page 1 of 3 Honig FAR ESQsih Medla.Center Predatory ► Mortgage Lending Payday Lending Other Abusive I. Financial Practices Predatory Lending ► and North Carolina N.C. Predatory Mortgage Lending Law N.C. Mortgage Broker Licensing Law N.C. Payday Lending The N.C. Coalition for Responsible Lending Research Library ► Federal & State ► Update For Consumers 10 About the Center for I► Responsible Lensing J,CRL WSSRJEFi Stay informed. Sign up now to receive news and updates from CRL. CLICK TO SUBSCRIBE). Share your experience with predatory loans, , > A RESOURCE FOR PREDATORY LENDING OPPONENTS Contact Us' Mews Archive The N.C. Payday Lending 'fake Action Site Map A History of Payday Lending in N.C. What's Happening Now Coalition for Responsible Lending Position on Payday Six Principles of Responsible Payday Lending What YOU Can Do A History of Payday Lending in N.C. 1997: NC General Assembly enacts legislation for a four-year payday lending experiment, authorizing check cashing firms to provide short-term cash advances to customers. 2001: With payday legislation soon to expire, the payday industry asks the General Assembly to extend this authorization. After strong protest by consumer advocates, legislators allow the legislation to "sunset" on August 31, 2001. Sunset has mixed results: some smaller payday lending companies sell out to large chains, revert to their original check cashing business, or go out of business. Other small operators continue to provide loans in violation of state law, at times providing payday loans under a different guise, e.g. offering a $300 rebate for signing up to use a computer with internet access and paying $15 every two weeks to continue this "service". Large chains, like Advance America, Check 'n Go, and Check Into Cash, continue to make loans by affiliating with out of state banks, claiming they are immune from state regulation (rent -a - charter). 2002: Attorney General Roy Cooper, joined by the NC Commissioner of Banks, files suit against Ace Cash Express claiming that Ace is violating the state's Consumer Finance Act and other state laws. He also files suit against several small operators and one renting internet service. In August 2002, a last-minute bill reauthorizing payday lending is introduced by industry supporters in the NC General Assembly. Despite strong protests by consumer groups, the bill is approved by the House Finance Committee. During debate in the House, consumer advocates succeed in having amendments added that reduce the maximum APR on payday loans to 90%. As a result, the payday industry withdraws its support for the bill and no further action is taken on the bill. A NEWS HEADLINI • Latinos falling predatory lend: L.A. Daily New: • 'Bounced-checl rules draw criti Bankrate.com Finance, 5/26/, • Predatory lend debated USA Today, 5/: • All Headlines A HOTTEST TOPIC • CRL Paper: The Overdraft Loan (pdf, 05/26/05 • Eakes Testifies Predatory Lend Legislation (pd • CitiFinancial OF Industry-Leadi. Practices (05/1 • Car Title Lendii Secured by Ca; Borrowers in D (04/14/05) • House Bills on Lending (H.R. H.R. 1295) (03 A JOB OPENINGS http://www.responsiblelending.org/predlend_nc/payday.cfm 00069 5/26/2005 The N.C. Payd.ay Lending -- Center for Responsible Lending Page 2 of 3 "It's true that North Carolinians with low -paying jobs need sources of emergency money, What they don't need is high-priced loans that drive them to greater desperation." News & Observer editorial 8/29/02 In October 2002, Ace Cash Express Inc. and Goleta National Bank reach an agreement with NC Attorney General Cooper to stop their payday lending activities for one year and pay civil penalties of $325,000. Payday Lending in North Carolina (pdf 2002) Sign on letter to legislators re: payday lending (pdf 2002) The Truth about NC Payday Lender Claims (pdf 2002) 2003: In February, the Office of the Comptroller of the Currency, which regulates nationally chartered banks, reaches agreement with Advance America, Cash Advance Centers Inc. and Peoples National Bank to end their payday lending arrangement in North Carolina and Pennsylvania. The bank pays $175,000 in civil penalties. The OCC says that, after its fourth such enforcement action since January 2002, no more payday lenders are conducting business through national banks. Back to Top What's Happening Now SB 947 has been introduced in the 2005 NC General Assembly. If you would like to receive updates, join the Coalition for Responsible Lending. Back to Top N.C. Coalition for Responsible Lending Position on Payday • We oppose any bill that reauthorizes payday lending without major changes to protect consumers. Trapping low-income borrowers in an escalating cycle of high -cost debt was never the intent of the original NC General Assembly statute in 1997. • We support changes to state check cashing and/or consumer finance laws that create non -predatory small loan products which, while carrying higher -than -average rates and fees because of higher risks, do not charge the 400- 500% effective interest rates promoted by the payday industry. • We also condemn the actions of payday lenders who are ignoring NC law by operating under the guise of being "facilitators" of loans made by out-of-state banks. • Finally, we call on NC legislators to ensure that the broad spectrum of consumer advocates and representatives - including the Attorney General and Commissioner of Banks- http://www.responsiblelending.org/predlend_nc/payday.cfm 0 0 0 7 0 5/26/2005 The N.C. Payday Lending -- Center for Responsible Lending Page 3 of 3 will be included in the formulation of any legislative solution that may be proposed. Back to Top Six Principles of Responsible Payday Lending • Minimum loan term no shorter than 90 days • Interest rate no more than 60% • Partial repayments with no prepayment penalty • No more than $300 outstanding at one time • No mandatory arbitration clause • Prohibition against out of state banks violating NC law Back to Top What YOU Can Do loin the NC Coalition for Responsible Lending to help combat predatory payday lending in NC. Back to Top © Copyright 2005 Center for Responsible Lending. All Rights Reserved. i Privacy Policy http://www.responsiblelending.org/predlend_nc/payday.cfm 00071 5/26/2005 Page 1 of 4 i Legislation + House+ Senate + information + Offices + Home SB 157 - Payday Lending; deferred presentment or advance cash services; regulate unlawful transactions (1) Cheeks,Don 23rd (2) Cagle,Casey 49th (3) Stephens,Bill 51st (4) Starr,Terrell 44th SC: B&FI HC: B&B 04/09/04 - Senate Date Signed by Governor First Reader Summary A BILL to be entitled an Act to amend Title 16 of the Official Code of Georgia Annotated, relating to crimes and offenses, so as to declare a legislative intent to prohibit activities commonly referred to as payday lending, deferred presentment services, or advance cash services and other similar activities; to provide that it shall be unlawful to engage in the business of making certain small loans; to provide for exemption for licensed and regulated activities; to define crimes and declare penalties; to provide for civil remedies of borrowers; to provide for civil penalties; to provide for collection of civil penalties in actions by the state or by private parties on behalf of the state; to provide for taxation of proceeds received; to provide for related matters; to repeal conflicting laws; and for other purposes. Electronically Recorded Votes Date Time Vote No Yeas Nays NV Exc Description 4/07/03 01:01 PM Senate 046 006 002 002 PASSAGE BY SUBSTITUTE V0233 2/12/04 01:49 PM House 033 116 025 006 TABLE V0675 2/12/04 01:52 PM House 092 080 002 006 Massey, Sailor amend V0676 2/12/04 01:54 PM House 053 115 006 006 Roberts #1 V0677 2/12/04 01:55 PM House 038 132 004 006 Roberts #2 V0678 2/12/04 02:01 PM House 063 109 002 006 Ehrhart, Coan V0679 http ://www. legis. state. ga. us/le gis/2003_04/sum/sb157.htm 00072 5/26/2005 Page 2 of 4 2/12/04 02:08 PM House 078 095 001 006 Ehrhart, Sailor V0680 2/12/04 02:11 PM House 085 086 003 006 Massey amend recon V0681 2/12/04 02:13 PM House 047 121 006 006 Lewis, Greene V0682 2/12/04 02:15 PM House 069 101 004 006 Lewis amend V0683 2/12/04 02:16 PM House V0684 064 103 007 006 Sailor, Sheldon 2/12/04 02:22 PM House 087 082 005 006 Ehrhart, Floyd V0685 2/12/04 02:23 PM House 077 091 006 006 Ehrhart, Floyd recon V0686 2/12/04 02:25 PM House 069 100 005 006 Sailor, Sheldon recon V0687 2/12/04 02:26 PM House 150 020 004 006 PASS V0688 2/17/04 12:33 PM Senate 019 031 001 005 MOTION TO TABLE V0765 2/17/04 12:35 PM Senate 047 003 001 005 AGREE TO HOUSE SUBSTITUTE AS A V0766 2/24/04 11:42 AM House 078 092 006 004 Agree Sen am to H sub V0758 3/04/04 01:00 PM Senate 049 002 001 004 ADOPT CONFERENCE COMMITTEE REP V0853 3/04/04 12:23 PM House 132 038 009 001 Adopt CCR V0830 Bill History Date Action 02/18/03 Senate Read and Referred 03/24/03 Senate Committee Favorably Reported 03/25/03 Senate Read Second Time 04/07/03 Senate Passed/Adopted 04/07/03 House First Readers http://www.legis.state.ga.us/legis/2003_04/sum/sb157.htm 00073 5/26/2005 Page 3 of 4 04/07/03 Senate Third Read 04/08/03 House Second Readers 02/05/04 House Committee Favorably Reported 02/12/04 House Third Readers 02/12/04 House Third Readers 02/12/04 House Passed/Adopted 02/17/04 Senate Agrees House Amend or Sub 02/24/04 House Disagrees Senate Amend/Sub 02/25/04 Senate Insists 02/26/04 House Insists 02/26/04 Senate Conference Committee Appointed 02/26/04 House Insists 02/26/04 House Conference Committee Appointed 03/04/04 Senate Conference Committee Report 03/04/04 House Conference Committee Report Adopted 04/09/04 Act 440 04/09/04 Senate Sent to Governor 04/09/04 Senate Date Signed by Governor Versions LC 34 0056S/hss SB 157/HCSFA Floor amend AM 14 06 Floor amend AM 34 00 CCR to SB157 AP As introduced LC 14 Committee sub LC 14 Floor amend 1 As passed Senate http://www.legis.state.ga.us/legis/2003_04/sum/sb157.htm 00074 5/26/2005 Page 4 of 4 Footnotes 2/17/04 Senate agrees to House substitute as amended by the Senate Georgia General Assembly Webmaster... webmasterAIegis.state.ga.us 06/23/2004 10:02 http://www.legis.state.ga.us/legis/2003_04/sum/sbl 5 7.htm 00075 5/26/2005 KnowledgePlex: Article: Texas Bill Targets Companies Seeking to Profit From Soldiers' L... Page 1 of 1 Texas Bill Targets Companies Seeking to Profit From Soldiers' Deployment John Moritz Fort Worth Star -Telegram April 12, 2005 LexisNex s- AUSTIN — High -interest lending companies that target soldiers bound for the war zone would be barred from engaging in high-pressure collection tactics and wage garnishing if a bill approved Monday by the Texas Senate becomes law. "Anywhere there are military posts, there are predatory lenders at the gate," said state Sen. Eliot Shapleigh, D-El Paso, whose legislation passed without opposition. "When soldiers are off fighting a war for the United States, we should fight here for them." The legislation came after reports from Fort Bliss, near El Paso, and Sheppard Air Force Base in Wichita Falls and other bases that U.S. service members and their families were being hounded for money owed to so-called payday lenders. Shapleigh said the lenders, who provide quick cash on the promise that it will be repaid in installments each payday, can charge fees and interest as high as 780 percent. A $ 1,000 loan can end up costing a soldier $ 4,000 in a year, he said. If Senate Bill 1479 becomes law, the lenders would be prohibited from garnishing service members' wages or conducting collection activity against them or their spouses while they are deployed to a combat zone or from contacting their commanders to force repayment of the debt. Service members who fail to pay their bills or abuse their credit can face consequences under military regulations, Shapleigh said. Another bill aimed at military personnel in Texas passed last week. Shapleigh's Senate Bill 506 would bar insurance companies from selling life insurance policies to military personnel without telling them about less expensive policies offered by the federal government. Shapleigh said some service members have paid $ 100 a month for policies that pay $ 29,000. They can purchase policies through the federal government that offer benefits of $ 250,000 for less than $ 17 a month. State Sen. Craig Estes, R-Wichita Falls, endorsed both bills, which now go to the House. "It's good for Sheppard Air Force Base and good for the military," Estes said." To see more of the Fort Worth Star -Telegram, or to subscribe to the newspaper, go to http://www.dfw.com. Copyright © 2005, Fort Worth Star -Telegram, Texas Distributed by Knight Ridder/Tribune Business News. For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail Leprints@krtinfo.com. http://www.knowledgeplex.org/news/84465.html?p=1 00076 4/20/2005 Fighting 'asset stripping' in San Diego j The San Diego Union -Tribune Page 1 of 2 ♦from Fighting 'asset stripping' in San Diego March 29, 2005 €t PE NTTHIS Not long ago, a bank vice president told Joni Halpern that poor people are poor because they are addicted to writing bad checks. He called this "a form of substance abuse." Halpern, a San Diego attorney, was pm' led: "Let's see. Last week, I worked with a 25-year-old woman who has two kids, ages ii and 6. She is poor because she is not working. She is not working because she has a terminal illness that will probably kill her in five years." In December, when the landlord hiked her rent, the woman couldn't pay on time and was evicted. She was homeless from Christmas Eve until the end of January. She still owes back rent to her former landlord, and she now has a bad credit rating — which means she will be turned away by most loan officers or landlords. She and her children now live in a single room that Halpern and a church helped her find. Desperate, this woman is a prime target for asset stripping, a term used by critics to describe the impact of so-called predatory lenders on individuals and communities. In July, SPIN, a San Diego network of 2300 low-income families working toward self-sufficiency, and the Caring Council, focused on poverty policies, created San Diego's Coalition for Fair Banking. The coalition is led by Bill Oswald, assistant dean at Springfield College's San Diego campus, and Halpern. So far, i4o individuals and organizations, including the League of Women Voters, have joined the coalition. Its goal: local reform of what has become an estimated $8o billion national high -cost lending and check -cashing industry. The industry has grown exponentially over the last decade, as traditional lending institutions withdrew from the poorest neighborhoods. Other companies moved into the vacuum, including pawn shops, rent -to -own stores and the new heavy -hitters, payday lenders and check -cashing companies. These businesses also popped up around military bases, targeting military families. Payday lenders offer loans against future paychecks, at interest rates of up to 50o percent; the more often you borrow, the higher the interest rate becomes. Check -cashing companies typically charge fees at up to 3 percent of the face value of a payroll or public assistance check, and 15 percent for personal checks. That may not sound like much, says Halpern. "But if you're a parent raising a child on a basic monthly welfare check of less than $6o0, the money you spend cashing your check is money you could have spent on food, transportation or laundry." Some banks, she adds, "make more money on you this way than they ever could if you were a conventional customer. This is because these banks, the ones that abandoned the poor neighborhoods in the first place, now partner with the check-cashers and payday lenders — they extend lines of credit to these companies, or own them." To add insult to injury, some banks even claim their tight relationship with check-cashers and payday lenders helps fulfill requirements of the Community Reinvestment Act, passed by Congress in 1977 to encourage depository institutions to help low -and moderate -income neighborhoods. In their defense, Doug Bandow, a senior fellow at the Cato Institute, argues that payday lenders and cash - checkers provide a needed service, because quick, high -interest loans help people meet unexpectedexpenses http: //si gnons andie go.printthis. clickability. c om/pdcpt?action=cpt&title=Fighting+%27asset .. 3/�2/2005 Fighting 'asset stripping' in San Diego j The San Diego Union -Tribune Page 2 of 2 — a car repair bill, a dental procedure, a prescription — which can threaten a job or a life. And some check - cashing companies have experimented with opening saving programs in their shops, in partnership with banks. Rather than calling for the elimination of check cashers and payday lenders, the Coalition for Fair Banking recommends that banks provide a new kind of electronic direct deposit savings account. Such a no -check, no -overdraft account would allow a person to withdraw three to five money orders each month to pay bills. Unlike payday lenders and check-cashers, these accounts would build assets and credit. In Los Angeles a few years ago, Washington Mutual offered such an account in a pilot program. Participants were required to go through two hours of financial literacy and account -management training. In 2001, SPIN and Caring Council began seeking San Diego banks that would consider opening a similar pilot project. Though this approach would be virtually risk -free to the banks and would bring them new customers "we couldn't find any bank in San Diego that would do it," says Halpern. Nonetheless, our region seems primed for innovation. San Diego was one of the first California counties to offer direct electronic deposits of welfare checks. National City has passed a moratorium on new payday lenders in its redevelopment zone. The city of Chula Vista is contemplating a similar ordinance. And Oswald and Halpern report that two San Diego banks and a credit union are considering the adoption of the new direct -deposit savings account, as proposed by the coalition. At least one of these financial institutions is likely to make an announcement in May. • Louv's column appears on Tuesdays. He can be reached via a -mall at rlouvOcts.com or via www.thefuturesedge.com. »Next Story» Find this article at: http://www.signonsandiego.com/uniontrib/20050329/news_Iz1 e291ouv.html r Check the box to include the list of links referenced in the article. 00078 http: //signonsandiego.printthis. clickability. com/pt/cpt?action=cpt&title=Fighting+%27asset.. 3/29/2005 California Department of corporations - uALLrultN1A vnrrtuc .. ruyu.rr w ww.wr fa.Buy! Huurcuuu.nuu California Home Corporations Home About the Department Historical Background Press Room Executive Office Office of Public Affairs Office of Management & Budget Office of Law & Legislation Securities Regulation Division Enforcement Division Contact Us! Financial Services Division About the Division Complaints Contact Us Escrow Agents: Employee Disciplinary Actions FAq's Finance and Lending Education Applications & Forms Licensee Listing Notice to Potential Claimants of The Escrow Source Other Useful Links Publications RjT1DBPART ENT e01 *fib+ COIONS CALIFORNIA'S INVESTMENT 8 FINANCING AUTHORITY - ESTAHLI9HEO 1913 CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW The California Deferred Deposit Transaction Law (-CDDTL') is contained in Division 10 of the California Financial Code commencing with Section 23000. The regulations under the CDDTL are contained in Chapter 3, Title 10 of the California Code of Regulations, commencing with Section 2020 (10 C.C.R. §2020, et seq.) The CDDTL became effective on January 1, 2003 and will become operative on December 31, 2004 (or earlier if changed by Executive Order of the Governor). Cn the operative date, the responsibility under the CDDTL for licensing and regulating persons engaged in the business of deferred deposit transactions (i.e. deferred deposit of a personal check) will be transferred from the Department of Justice to the Drpartment of (.n. pill ations . processapproving applications for the California Deferred Deposit The Transaction Law (CDDTL) of tapplications Corporations is in the of _ Approvetlon (CDDTL). A 8p of o eview tthe alphabetical have been approvedmniN . updatedleastonce e, that have been nNcensed under Approved Applications Listing IPd9 to review the alphabetcal list of companies, by legal the CDDTL. The definitions in the CDDTL determine who is subject to the licensing requirements of the CDDTL. The CDDTL defines a "deferred deposit originator' as any person who offers, originates or makes a deferred deposit transaction. Deferred deposit transaction means a transaction whereby a person defers depositing a customer's personal check until a specific date, pursuant to a written agreement, as provided in Financial Code Section 23035. Although deferred deposit originators must obtain a license from the Department of Corporations to engage in the business of deferred deposit transactions, the following persons or entities are excluded from the definition of licensee and are therefore not subject to the CDDTL: • A state or federally chartered bank, thrift, savings association, or industrial loan company. • A retail seller engaged primarily in the business of sailing consumer goods, including consumables, to retail buyers that cashes checks or issues money orders for a minimum fee not exceeding $2 as a service to its customers that is incidental to its main purpose or business. Persons that are licensed under the CDDTL may be an individual, corporation, a partnership, a limited liability company, a joint venture, an association, a joint stock company, a trust, an unincorporated organization, a govemment entity, or a political subdivision of a government entity. An application must be submitted for each location that the applicant intends to engage in the business of defernad deposit transactions. A licensee with one or more licensed locations may file a short form license application establisher) by the Commissioner. Applications are processed in the order they are received. A. The requirements for obtaining a license are as follows: 1. For each location, submit an application with httheapp fees theme an application asaessmed are fee of $200, an investigation fee of $100, and the assessment payment( applicable). flaand An application on a short form established by the Commissioner may be submitted for each additional location that the applicant intends to engage in the business of deferred deposit transactions. Short form applications for each additional location, including mobile units, must include an application fee of $200, and an investigation fee of $ICI0 and the assessment payment (d applicable). 2. Maintain a surety bond in the amount of $25,000 which must be in effect prior to the issuance of a license. Submit financial statements in nce with Generally pted Accounting Principles at strates 3. that the applicanthas a net r worth of at 2at least $5 000. After Iicensure, the Pcensee shall equirred tohmaintain na net worth of at least $25,000 at all times. Monday, February' 28, 2005 Contact the W ebmaster if you have questions or comments concerning this site or call 1-866-ASK-CORP (1-866-275-2677). search 0 My CA 4" Corp's Website 4. The application must include fingerprint cards and the cost of fingerprint processing for the following: • The applicant; • The general partners, officers, directors and persons owning or controlling, directly or indirectly, 10% or more of the outstanding equity interests of the applicant; and • Other key persons involved, such as managers/members, trustees, any other officers with direct responsibility for the conduct of applicant's deferred deposit activity, and the persons who will be in charge of the place of business. 1 of 3 2/28/2005 10:00 AM 00073 Ca11.t0i.1.11a Iepa.1TInent fax t:otporanons - uFtJ1Lt'r.J.tii'1.11f. An appiicaticn may be denied if any officer, director, general partner, or person owning or controlling, ilrecthr or indirectly, 10% or more of the outstanding interests or equity securities of the appl carit has, within the last 10 years IrAy been convicted of or pleaded nolo contendere to a crime, or (8) committed any act Inn rolvir1j dlsfanesy, fraud, or deceit, tithe crime or act tla substantially related to the qualifications, functions, or duties of a person engaged in the business cif deferred deposit transactions. EL The following are scants of the requirements a deferred deposit originator must camlply with after the Department car Corporations Issuesr a Ilrrnse: 1. Each year a licensee is required to pay an assessment for each licensed location. Th3 assessment shall be the pie rata share of all costs and expenses reasonably incurred in the administration of the CDDTL. The assessment no8.ic ss shall be mailed to each licensee on or before the 20th day of May each year and meal be paid within 30 days. The failure to pay the assessment by the due date may result in penalties, and/or suspension or revocation of the license,. 2. Licensees are subject to statutory books and record requirements. Each licensee shall keep and use books, acco,uni;s„ and records that will enable the Commissioner to determine If the licensee is complyi ig with the provisions of the CDDTL and with the rules and regulations promulgated by the Commissoner. Each licensee shall maintain any other records as required by the Commissioner. 3. The Commissioner may examine the business, books and records of the licensee am, time, but not less than once every two years. The Commissioner's representatives shall have free access to the ad Rees and places of business, books, accounts, papers, records, fides, safes, and vaults of the licensee. The Iloenaeeel shall pay the costs of the examination. 4. Licensee must maintain a surety bond at all times in the amount of $25,000. The bond shall be payable to the Commissioner and issued by an insurer authorized to do business in this state. For licensees with multiple licensed locations, only one surety bond in the amount of twenty-five thousand dollars ($25,000) Is required. The bond shahs be used for the recovery of expenses, fines, and fees levied by the Commissioner or for losses or damages incurred by consumers as the result of a licensees noncompliance with the requirements of the C'.DDTL. 5. A licensee, regardless of the number of locations, must maintain a net worth of at teat $25,000 at all times. 6. An advertisement disseminated primarily in California for a deferred deposit transaction, shall disclose in the primed text of the advertisement, or the oral text in the case of a radio or television advertisement, that the licensee is licensed by the Department of Corporations pursuant to the CDDTL. The Commissioner may n3quire licensees to maintain a file of an advertising copy for a period of 90 days from the date of its use. The file shall be available to the Commissioner upon request. 7. Every licensee shag post a complete, detailed, and unambiguous schedule of fees in a conspicuous location in the unobstructed view of the public within the licensee's location. 8. No licensee shall transact the business licensed or make any deferred deposit transactions under any other name or al any other place of business than that named in the license unless there is an order by the Commissioner authorizing the other name or other place of business. 9. Licensees are required to notify the Department of any change in location at least 10 clays prior to the move. Failure to do so may subject the licensee to a civil penalty not to exceed $500. 10. The license, along with any orders approving a different name, shall be conspicuoust posted in the place of business authorized by the license. 11. A license is not transferable or assignable. 12. Licensees must file en annual report by March 15 of each year commencing on March 15, 2006. The licensee's annual report shall be kept confidential. The annual report shall include the following information for the previous calendar year: • The total number and dollar amount of deferred deposit transactions made by the licensee. • The total number of individual customers who entered into deferred deposit transactions. • The minimum, maximum, and average amount of deferred deposit transactions. • The average annual percentage rate of deterred deposits. • The average number of days of deferred deposit transactions. • The total number and dollar amount of returned checks. • The total number and dollar amount of checks recovered. • The total number and dollar amount of checks charged oft. 00080 2 of 3 2/28/2005 10 00 AM LekisNexis(TM) Academic - Document 4Return to Full LexisNexisTM Academic Copyright 2004 The San Diego Union -Tribune The San Diego Union -Tribune March 9, 2004 Tuesday SECTION: NEWS; Pg. A-1 LENGTH: 1645 words HEADLINE: Payday loans have financial dark side; High charges lead to lasting cycle of debt, officials warn BYLINE: Jeff McDonald and Norberto Santana Jr., STAFF WRITERS BODY: f 11 f : 31 On paper, the deals are straightforward: Sign a post-dated check and get instant cash, minus a few fees. Borrowers get the money they need and creditors pocket up to 900 percent interest and millions more in surcharges every year. Profits are so good, the number of so-called payday lenders has exploded across California, especially in San Diego County. But the cost to consumers is huge. More often than not, customers are unable to cover the checks they write and they have to roll over their loans, sometimes many times. The crushing debt loads, pressure from consumer groups and a flood of new short-term, high -interest lenders has combinedto finally draw attention from elected officials. Even so, the few rules imposed by lawmakers -- such as a ban on payday lenders or check -cashing services in National City -- often are pushed back or bent even before they take effect. In Sacramento, where a 2-year-old law called for transferring oversight of the loamakers to the Department of Corporations by March 1, there is still no office and no new regulators to do the work. The 2002 law took three years to negotiate. State officials blamed the budget crisis for their failure to set up the bureaucracy they need to enforce the stricter rules, which generally amount to little more than requiring lenders to post their rates in half - inch letters and cap fees at $15 for every $100 borrowed. Last month, lawmakers passed a bill that gave corporations until next year to assume its added duties. Consumer advocates who spent years fighting for tougher regulation of the industry complain that such delays and exemptions are due, at least in part, to the tremendous political influence wielded by the lenders. 00081 http://80-web.lexis-nexis.com.libproxy.sdsu.edu/universe/printdoc 10/5/2004 LexisNexis(TM) Academic - Document Page 2 of5 "This is just one example of lawmakers in California putting the interests of businesses over the interests of low-income consumers," said Shelley Curran of the Consumers Union in San Francisco. "It's a product that captures people in a cycle of debt." Nowhere else in California is likely to be more affected by tighter controls -- once they take effect -- than San Diego County. With a huge military presence and proximity to the U.S.-Mexico border, this region has one of the highest concentrations of payday lenders in the state. Officially known as deferred deposits, payday advances are instant loans of a few hundred dollars that are supposed to be repaid in 30 days or less. In a typical $300 transaction, the borrower collects $255 and agrees to allow the lender to cash the check, usually two weeks later. - All too often, however, borrowers are unable to cover the check within two weeks and agree to extend the loan. Industry research shows that 40 percent of customers renew their loans five or more times. Each loan comes with a new $45 fee, which can push annual interest rates as high as 900percent. Consumer groups say such lenders prey on poor families in lower -income communities. Lenders counter that they provide a valuable, convenient service to neighborhoods that often lack traditional banks. The practice of payday lending has been legal in California only since 1996, when a collection of check -cashing businesses persuaded the Legislature to allow an expansion into making loans. The number of such businesses has been growing exponentially. There are now more than 2,300 payday lenders licensed by the state -- 449 new ones last year alone, records show. The state attorney general's office considers payday lenders a bad choice for consumers. Weeks before the holidays, Attorney General Bill Lockyer issued a press release urging people not to use them. His spokesman said there has never been any enforcement action against any of the licensees, buthe declined to release information about complaints. Big business here There is no public data available on the volume of payday loans made in the United States each year. Industry consultants placed the number of loans last year at between 95 million and 100 million -- totaling about $25 billion. The fees for those loans were estimated between $4 billion and $4.3 billion. Check cashers reported some $55 billion in transactions over the same period. The new legislation calls for payday lenders to submit detailed annual loan information to the California Department of Corporations by 2006 so regulators can keep fimier track of consumer and industry practices in this state. Oceanside leads all ZIP codes in California, with 22 deferred deposit lenders, according to the Department of Justice. Mayor Terry Johnson did not return messages requesting an interview on the issue. There is a three-way tie for second among El Cajon, Santa Ana and Rialto, with 14 apiece. National City, Miramar, City Heights, Chula Vista and Clairemont all have 10 or more license holders. http://80-web.lexis-nexis.com.libproxy. sdsu. edu/universe/printdoc 00082 10/5/2004 LexisNexis(TM) Academic - Document Page 3 of 5 In National City, where check cashers and payday lenders are concentrated along two thoroughfares, the council's ordinance called the businesses, among other things, an immediate threat to public safety. Before a yearlong moratorium that halted efforts to curb payday lenders expires, Mayor Nick Inzunza says, he will push another law that would force such high -cost financial services companies out of his town altogether. "These businesses are taking money from the residents of our city," the mayor said. "It's our responsibility to protect the health and the welfare of our citizens, not just clean the streets and trim the trees." Experts like Christopher Peterson, a law professor at the University of Florida, said more and more cities are turning to zoning laws because land -use policy is one of the few ways local governments can exercise control over unwelcome businesses. "Cities are finding that payday lenders are a blight in the community," said Peterson, whose book "Taming the Sharks: Towards a Cure for the High -Cost Credit Market," is due out this spring. Peterson said other people and businesses that rely on the regular monthly payments of nearby customers -- landlords, utility companies, grocery stores -- can be adversely affected by having so many high -interest lenders in any one neighborhood. Low -earning borrowers who fall into debt may be unable to pay routine bills, he said. "It depresses the viability of entire segments of consumer markets." James Bliesner, who oversees a task force that examines community reinvestment and financing practices across San Diego County, said payday lenders and check cashers have carved out a niche market. "They're pariahs, but they're filling a gap that traditional lenders are not filling," said Bliesner, who has begun tracking payday lending abuses and is pushing traditional banks to open branches in lower - earning communities. Like other consumer advocates, Bliesner is frustrated with the failure of state and federal legislators to rein in what he calls predatory lenders. "The check -cashing industry has a great deal of resources to influence lawmakers, and they're using it effectively," he said. "We want to develop a law that works on a local level." 'You're always paying' Customers know that payday loans and check -cashing services are expensive, but they still use them -- either because they are more convenient than banks or they are often no more expensive than checking accounts. Edgar Galindo, 21, has a regular bank account but he cashes his paychecks at a fee -based check - cashing service. "It's more accessible," said Galindo, who works as a night security guard and attends school. "Instead of waiting in line at the bank, I just come over here and cash a check even though it costs $8. The bank http://80-web.lexis-nexis. com.libproxy.sdsu. edu/universe/printdoc 00083 10/5/2004 LexisNexis(TM) Academic - Document ?age 4 off) always has lines." Manuel Mesa, 55, said banks and check -cashing stores take advantage of the poor. But at least with the check cashers, he said, it is easier to keep track of how much they charge. "Banks are almost the same," he said, waiting for his wife to cash her check at an outlet on Highland Avenue. "With all those checking charges, you're always paying for this and that. They take advantage of you, too." Mesa still remembers when the local supermarket would cash a paycheck without much trouble. "Now, it's like everybody wants a part of your check," he said. Most payday loan customers do not welcome talking about why they need money quickly. Like many borrowers approached in recent days, a sailor in the Midway area of San Diego declined to discuss the terms of his loan. "This is my first one," was all he would say before he drove off. As oversight of such businesses increases, many industry representatives have circled the wagons. They spend millions of dollars to plead their case to lawmakers and to the public. The trade associations stress the convenience and service their members provide, saying that most of their clients understand exactly what they are getting into when they take an advance. Payday borrowers tend to be younger, lower middle-class families. More than 40 percent own homes and 19 percent hold a college degree, according to Community Financial Services of America, an industry group. Customers also must have a checking account and show proof of employment. "They do not have access to credit cards, they don't want to borrow from family members," said Rick Lyke of Financial Service Centers of America, another association that represents check-cashers and payday lenders. "We're talking about short-term, emergency cash. You can't go into a bank and say 'I need $200 to fix the brakes on my car.' " Jean Ann Fox of the Consumer Federation of America said that despite fresh scrutiny from politicians, California has one of the poorest records among all 50 states when it comes to regulating check cashers and payday lenders. "For a state as large as that, and for the amount of business being done there, you would think the public would not put up with that," said Fox, who tracks the industry from coast to coast. "Of course, the people who write the rules probably don't have to write checks without money in the bank." GRAPHIC: 3 PICS; 1 CHART; CAPTIONS: 1. Maria Quiroz collected funds that were transferred to her yesterday from Chicago at Checks Cashed 4 Le$$ in National City. 2. Advance paycheck loans are only one of many services offered by Checks Cashed 4 Le$$ in National City. Owner Salam Mahmood said such businesses are necessary and provide financial services at competitive rates to people who would otherwise not have access to them. (A-8) 3. In National City, where check cashers and payday lenders are concentrated along two thoroughfares, the City Council passed a moratorium on such http://80-web.1exis-nexis.com.libproxy. sdsu. edu/universe/printdoc 00031 10/5/2004 LexisNexis(TM) Academic - Document Page 5 of 5 businesses. (A-8) 4. Payday lenders moving in -- San Diego County has a high concentration of businesses that make payday loans. Seven of the 34 ZIP codes in California that have at least 10 such lenders are here. A ZIP code in Oceanside had the most in the state. (A-8); PHOTOBY: 1,2,3. John Gibbins / Union -Tribune 4. SOURCE: California Department of justice I BRIAN CRAGIN / Union - Tribune LOAD -DATE: March 11, 2004 00085 http://80-web.lexis-nexis.com.libproxy.sdsu.edu/universe/printdoc 10/5/2004 orr,.h. Lr os - Nor*.." z",art ,t JV rswwe L uumy 1:011111111.1NIN raake a ut 4 ISdit:fon; of tha County Times, Serving Sari Diego. and Riverside Counties r /i.fN Ii:L'iJ i ®,rt,l Ne'n's Search Web Search tome News Spo te, Business Opinion Coastal Inland Californian State National A r1C: h IN e:s r-ctos classif ed Search Advertising Circulation Monday, January 10. 2005 Contact Us S,ibscnb:_ Calendar Howes :'obs Reader Services Traffic Stocks Entertainment Features Columnists Cor Special Reports Columnists Letters OI Last rrtcaclified Saturday, January 8, 2005 7:17 PM PST Paycheck -to -paycheck living feeds payday lending industry By: EDMOND )ACOBY - Writer OC:EANSIDE -'--• He was in ciwiies, bu: there was no mistaking that he was a Marine. His posture said so, as did the quiet "Yes ma'am" with which he, answered al question. He spoke briefly of being deployed soon to South Asia to set up a communications center as part of the U.S.. response to the tsunami that struck on Dec. 26. Then he signed a form authorizing the payday lender, a company called Checkmate et South Coast Highway and Seagaze: Drive in Oceanside., to debit his bank account: $230, and he walked out with $200 in cash. Five minutes later, the same Marine repeated the procedure next door at Marine Advance Pay Site, stuffing another $200 into his pocket. The: Marine wouldn't give his name and wouldn't talk about his borrowing habits, but his visits to the two storefronts clearly were not his first. Like most: of the junior enlisted Marines at Camp Pendleton in pay grades E2, E3 and E4, he probably makes little more than $700 every two weeks, which means more than half of his next paycheck is gone already. Companies like Checkmate and Marine Kathleen and Wayne Davis leave Checkmate in Oceanside Friday morning after getting a payday loan to help pay bills. J. Kat Woronowicz/For the North County Times Order a copy of this photo Visit our Photo Gallery Scnd Click now to send es yonr news. i wow When it matters to North County, trust your North County Times Keyword Se Send tJs Your Local Pk Click lit HARD Arts & Enterta' Magazin( http://www.nctimes.c'onr/articles/2005/01(09/business/news/l7_17_261_8_05.txt Own A Piec Of Histc A Thous Miles 1 Baghd 1/11/2005 ill 0008E 1.V141 �V4fll 1.4111iJ - d l V1 1-1.1 I.1G41 .V L6.V 1111LL J UULtvo,....]A J. V(iy y11LLG VIJ LLIj!'' �,UjLLj111jJ�, r arc c vi 1+ Advance Pay Site are members of what is called the deferred presentment industry. They aren't lenders in the classic sense, in that they don't require their customers to fill out credit applications and they don't check references. They verify that borrowers have jobs and checking accounts, then they take a check or an electronic withdrawal authorization in exchange for a cash advance. They deposit the check or process the withdrawal on a day that the customer has agreed, usually the customer's next payday. The fees they charge -- they are careful not to call it interest — vary, but in California they are capped at 15 percent. California caps the amount of the advance, too, at $300. The fee is always deducted from the advance, in effect being paid upfront, so authorizing a $300 withdrawal from his bank account will get the borrower $255. In the old days, according to Sharon Reuss, a spokeswoman for the Center for Responsible Lending, a Durham, N.C.-based division of a community development lender called the Center for Community Self -Help, the arrangement had a different name. "Check kiting, that's what it used to be called, and that's what's happening with payday loans," she said. Check kiting is writing a check for which there is not enough money in the bank account on which it is drawn with the object of depositing the money before the check reaches the bank. The owner of a payday lending store on Oceanside Boulevard, Checkpoint Check Cashing, said his company filled a void for low-income workers and military personnel by supplying a source of ready cash. "I believe the banks and credit card companies are more predatory than we are," said Milan von Sighart, who owns the Checkpoint store at 1950 Oceanside Blvd. and another on Miramar Road across from Marine Corps Air Station Miramar. "Banks charge fees for overdrawing your account, and for a $2 overdraft they'll charge you $25," he said. "We can prevent somebody from being charged that fee just by borrowing the money from us." "There's a difference between a penalty for an overdraft and charging somebody a three -digit interest rate for a loan," Reuss said. According to the Califomia Department of Corporations, which took over legal authority for deferred deposit transactions such as payday loans on Dec. 31, the Marine who borrowed $200 from each of two payday lenders is actually paying an annual percentage rate of 391 percent for the money. According to the Center for Responsible Lending, payday loan borrowers typically borrow again and again, because when the advance is paid back on payday they're still short. The average borrower, a center analysis shows, borrows eight to 13 times per year. If the Marine borrows just eight times in 2005, each time getting enough cash to make up for paying back what he borrowed last week, his $400 in advances will end up costing him $480, and he'll still owe the money. "Because payday loans are targeted to people in financial trouble, there are few borrowers who can pay off their loan" after just two weeks, Reuss said. Von Sighart agreed that his customers are principally people in financial trouble, the very people least able to come up with enough cash to pay off an advance and move on. "Most of us have credit cards or have money in the bank," von Sighart said. "This service is for people who live paycheck to paycheck." About 60 percent of his customers are Marines, he said, and he thinks he sees each of them at least a dozen times a year. http://www.nctimes.com/articles/2005/01/09/business/news/17 17 26] 8 05.txt News Upc .more AP. 1 /1 1 /2005 0008 :o l 11 s "V OTr r, .��" r .. o,-n, ?„U.. ..4u,'-St.w G. . pj.. VG.. b"., .. .W.. a.., "Sure, this service can be: abused,' he said, 'by the borrowers: They're shore a couple of hundred dollars so they 'oorow the money from me. Then after a month the money IS repaid and they're 13hort a couple of hundred dollars aigain; it can become a vicious cycle." There is a cure. he said.. 'Tighter the belt.:Sorne of :hese people have $500 telephone bills. I now, because they bring in their telephone bi Is to prove their address." The 1N6arin e Corps advises its enlisted personnel to avoid payday lenders, which it characterizes as pre:datcanr lenders, "It seems life a low interest rate -•— '15 percent ---- but the loan is due in two weeks, and that's a very high interest rate," said Majj, Mike IRen.e., director of the joint legal assistance office at Camp Pendleton. "Thee Marine Corps on the whole ties to get 11arines educated_ We have a financial management con'espondence course, and every correspondence course wins the Marine points toward promotion„" Renz said. According to Renz:, the Corps wil not enforce debt collection, but "we expect all Marines to pay their just debts.' A Marinewho passes a bad rterk, like anyone else, is subject to criminal prosecution. But giving a check to a payday lender that s dishonored by the check writer's bank is not classified as writing a load check and aernot be prosecetead criminally under California law. Payday lenders are supposed to tell their custtome-s that they are not subject to any criminal penalty for failure to comply with the terms of the payday (loan agreement. The taw requires that they supply disclosure st:aieinnenls that say so prior to closing a cash advance deal. In addition, payday lenders acre required to pest notio.es, "clearly and conspicuously _. in the unobstructed view of the public in their places of business showing the dollar cost and the annual percentage rater for 14-day and ::;I) -day cash advances of $100 and $200. The placards were not visible in ,,any of the half -dozen payday loan establishments visited Jan. 4 by the North County Times. Taitles of ieces were !posted, but without three required annual percentage rates associated with the fees. "What we do is legal," !said von :Sig hart, who opened his first payday advance store adjacent to Fort: 'Ord e>n the Central California coast in the early 1990s, then opened one near Camp Pendleton when Fort Ord meas closed. "But if 1 were the commanding office- of that base, I would certainly counsel those under my command how to manage their finances," anon Sighed said. "My God, most of the people I see here don't even have check registers in their checkbooks. They don't know what checks they have outstanding, and they can't balance their accounts," he said. In a perfect world, he said, "there would be no need for a company like mine." But until then, write hire as check for $:300 and he'll le:l: you use "$255 01` his money for a couple of weeks. Contact staff writer Edmond Jacoby at: (760) 739-1E675 or ejacoby@nciimes.cem. Recent Top Stories Chargers' season elands with IOT kick :Storms $.tacked up to it San Diego County Niorth County fans arrive early for game http://www.nctimes.con/articies/2005/01/09/1')Usiness/news/l7_17_261_8_05.txt 1/11/2005 00088 North County limes - North San Diego and Southwest Riverside County columnists rage 4 or 4 - Rains offer little direct boost to water supply Consolidation funding idea a mystery - Storm packs punch, but causes little damage - Local officials brace for more cuts in governor's budget proposal - Prosecution must wait to evaluate man accused of killing cop - Santa Ysabel band, county sign casino agreement - Storm arrives in North County - Play-off tickets still available ---- for a price - Powerful tropical storm due - Supervisors to consider giving themselves raises - Court interpreters picket over contract talks - Classes start for Cal State San Marcos' first doctoral students - State looks to feds for flu -shot advice - High -profile criminal cases on tap for 2005 - Sprinter construction slowed by weather - Cold storm pounds region with rain; snow blankets mountains State sets deadline for Pechanga video lottery terminals -Slater-Price named chairwoman of county supervisors - DA files papers to safeguard First Latino property Print this story Email this story A Weekly Mild To local Events Related Advertising Links Payday Lending Apply For Your $500 Loan Today. Nothing To Fax, No Credit Check! www. Fe stCashExpert. com Payday Loans Up to $1000 Immediate Approval: No Credit Check Get Your Cash within Minutes - Now! www.PersonalLoans123.com Home News Sports Business Opinion Entertainment Features Columnists Cor webnasteranctimes.com q 1997-2005 North County Times - Lee Enterprises http://www.nctimes.com/articles/2005/01/09/business/news/17 17 261 8 05.txt editor it 1/11/2005 00089 the dti THE DEPARTMENT OF TRADE AND INDUSTRY SOUTH AFRICA REGULATION OF PAYDAY LENDERS IN THE UNITED STATES Patrick Meagher IRIS Center, University of Maryland March 21, 2003 Support provided by the U.S. Agency for International Development SEGA Project, Nathan Associates Inc. 1 00090 the dti THE DEPARTMENT OF TRADE AND INDUSTRY SOUTH AFRICA 1. What is "payday lending" in the U.S. context? In the U.S. setting, "payday lending" (PDL) transactions generally involve workers with both steady jobs and access to banking services, including checking accounts. Finance charges are high — according to a survey published in 2000, they averaged $36 on a two -week loan of $200, an annual percentage rate (APR) of 474%,i The transactions follow approximately this pattem: a) The worker applies for a short-term cash loan at a PDL outlet, known variously as a check cashing, deferred deposit, or payday advance provider (and advertised under still other names). b) The lender verifies details such as employment, checking account, perhaps even a rapid credit check. c) If approved, the loan is extended against a post-dated check for the principal and interest — or the interest and any other fees (e.g. first-time application fee or finance charge) might be collected immediately in cash. The check is held until repayment, not deposited. d) The loan term is usually for two weeks, and the loan is repaid on payday. If the borrower is unable to repay, the options include a rollover for a fee, a refinancing (new loan with new fees), or the lender's presentment of the check. Depositing the check with insufficient funds exposes the borrower to multiple fines and even the possibility of criminal prosecution for knowingly passing bad checks. 2. The boom in PDL and the role of regulatory gaps This industry has boomed since the 1980s. This is partly due to a general context of widening gaps in economic status, growth of the working poor population (stimulated in part by immigration), and deregulation -led consolidation in the banking sector with consequent reduction in service and closure of branches in low-income areas. Analysts suggest that payday lenders offer rapid and convenient service in underserved communities. Convenience is based on simplicity, speed, and importantly, location — thus reducing transaction -related costs such as transportation and making time during the workday to visit the bank. There is also said to be a relative cost savings, in that borrowers can get access to cash that either does not exist in their accounts or cannot be withdrawn without incurring fees triggered by minimum balance rules, More importantly, a payday loan essentially allows the borrower to "write a check" backed by insufficient funds, without incurring high "bounced" check penalties.2 I Barr (2002: note 14), citing State PIRG study, "Show Me the Money!" (2000). 2 Caskey (1994); Johnson (2002). 2 00091 the dtit THE DEPARTMENT OF TRADE AND INDUSTRY SOUTH AFRICA However, critics argue, with some justification, that many PDL customers would qualify for mainstream credit on much better terms, and that payday lenders often engage in sharp practices — practices that cross the line from shrewd entrepreneurship into abuse of consumer rights. These include excessively high rates, inadequate disclosure, rollovers leading to debt spirals (abetted by policies against partial repayment), aggressive enforcement practices (including the threat of criminal prosecution), misleading advertising, and contractual waiver of certain legal remedies.3 As PDL boomed, by the early to mid-1990s it became apparent that the industry fell into a kind of regulatory grey area. Most states have longstanding small or consumer loan laws, sometimes combined with criminal usury or anti -loan sharking laws - but until the early 1990s, very few had laws dealing explicitly with PDL. Thus, in the majority of states, payday lenders could only be controlled, if at all, not through tailored regulations but by means of a patchwork comprised of consumer credit statutes, criminal law, legislation on fair trade and fraud prevention, and the common law of contract. Two main methods came to be used for protecting the technical legality of PDL in these situations. First, the payday lenders for some time denied that they were extending credit at all — they were simply taking a fee for cashing checks. Where this didn't work, lenders disguised credit transactions as sale -leasebacks of consumer goods, sales of sham advertisements or catalogue certificates, etc. These fictions, designed to circumvent consumer credit laws, have been ruled improper in most states by statute or case law. The second, more successful, form of cover for PDL is an agency relationship with a national bank — a practice known as "charter sale" or "rent -a -bank". Under U.S. banking law, a national bank is subject to federal law as well as applicable state law in its place of incorporation. This applies to the bank's operations in the state of incorporation and in other states where it has business, including branches. Thus, a bank based in state A (with only light consumer loan regulation) can extend payday loans in state B (with heavy restrictions), at higher rates than allowed in state B — provided the law of state A is complied with. This allows national banks to dodge state usury restrictions.4 Banks and payday lenders saw an opportunity here: in return for a fee (and/or a share of profit), banks would allow payday lenders to shelter under their charters as affiliates. This enabled payday lenders to dodge state usury and consumer standards. Indeed, these lenders often advertised to the banks, soliciting charter -based PDL ventures. 3. Current regulation and reform initiatives 9 Id., note 12; Johnson (2002), An altemative to criminal prosecution is a suit for treble damages, provided for in several state bad -check laws. 4 Id. Usury limits vary, with many of them in the range of 36% APR — but some payday lenders are said to have used the charter tactic to evade even high PDL ceilings in the 300— 400% APR range. 3 00092 the dti THE DEPARTMENT OF TRADE AND INDUSTRY SOUTH AFRICA The debate over payday lending has become increasingly heated since the mid-1990s. Policymakers, analysts, and especially associations representing consumers and check- cashers have taken strong positions for and against. The main concerns are consumer protection, equitable access to credit, and limiting risks posed by national bank involvement in PDL. The regulatory response to date has taken the following forms: Voluntary standards: Two national associations of payday lenders have come forward with industry codes that address some of the major concems of consumer advocates.5 The codes address pricing, disclosure, advertising, right of rescission (within 24 hours), collection practices (e.g. avoiding threats of criminal prosecution), rollover limits, and consumer education. The codes call for full compliance with all disclosure laws including the federal Truth -in -Lending Act. At the same time, the associations have resisted legislative proposals to require written disclosure — or posting — finance charges in the form of an APR. On the issue of using national bank charters, one of the associations (CFSA) calls for a cautious approach in which payday lenders should only enter such an arrangement if the bank itself sets the terms, approves advances, and complies with all applicable laws — i.e. a true agency relationship exists. Consumer advocates strongly suggest that these standards are routinely ignored in practice, and some large lenders have quit the associations in opposition to the standards.6 State PDL legislation: There is a range of approaches here. More than 20 states and territories essentially outlaw PDL by way of usury limits or direct prohibitions. A smaller group of states allow licensed payday lenders to operate under general legislation, free of price restrictions. The largest group, about half of U.S. states, permit PDL under specific statutes. Such laws usually provide for a maximum loan amount, fees, and term; mandatory use of written contracts; full disclosure of terms and posting of fees; limits on rollovers; and restrictions on collection practices, including criminal prosecution and treble damages suits. Fee ceilings are usually in the range of 15-25% (flat) of the face amount (390-650°/D APR). States have pursued a host of recent initiatives in this area. Illinois in 2000 considered a 30-day cooling -off period between payday loans. Virginia has been considering a bill to require disclosure of PDL lending rates, in APR form, in their advertising. A PDL bill in Utah would allow debtors to make partial payments.? In all cases, state and federal laws on fraud, fair trade, and consumer protection apply. By way of example, North Carolina enacted legislation on PDL in 1997 (but with a "sunset" provision requiring expiration in 2001 if the statutory provisions were not re -authorized). The legislation required a written contract stating the total amount of fees to be charged, limiting the fees to 15°/D, setting 31 days as the maximum deferral of deposit, and prohibiting extensions, rollovers, and cash -outs. The state's objectives in enacting the laws 5 The Financial Service Centers of America (FISCA) Code of Conduct (www.fisca.orq) and the Community Financial Services Association of America (CFSA) Best Practices (www.cfsa.net). 5 Schaaf (2001); Johnson (2002). r Schaaf (2002); Lexis/Nexis news articles. 4 00093 the dti THE DEPARTMENT OF TRADE AND INDUSTRY SOUTH AFRICA were to bring PDL within a licensing and regulatory framework, and to ensure protection of consumers from known abusive practices in the industry. The legislation required all payday lenders to obtain a license from the state Commissioner of Banks, which was authorized to issue rules to ensure compliance. Apparently one of the Commissioner's main areas of regulation concerned the posting of fees. Violations of the laws and regulations were noted, and the state allowed the legislation to lapse in 2001. This partial ban is being translated into a total ban, as North Carolina recently sued a group of payday lenders using a national bank charter, reaching agreement with some on a temporary ban.8 While states have been preoccupied with consumer protection issues, they have not been as focused on other aspects of payday lenders, such as monitoring and data collection, One observer in 1994 noted the almost complete lack of attention to these matters, and an extreme shortage of data. More recent accounts suggest that the situation has not drastically improved.9 Statutes such as North Carolina's, bringing PDL under state financial regulators, appear to be the exception. Another example is the law adopted by California in 2002, imposing standards on PDL practices and authorizing the state Department of Corporations to audit payday lenders, collect data, and conduct a study for later legislative reforms. ro Action by federal banking regulators: There is no federal legislation specific to PDL, although federal banking, fair trade, and consumer protection norms apply (see above). Meanwhile, consumer groups are strongly advocating federal legislation to create uniform protections for PDL borrowers, and to close regulatory gaps. The U.S. Congress over the last several years has considered legislative proposals in this area, but has not yet passed any laws. Federal banking authorities have had to intervene because of the involvement in PDL of some national banks and thrifts, and other federally -insured institutions. In November 2000, the Office of the Comptroller of the Currency (OCC, regulator of national banks) and the Office of Thrift Supervision (OTS, regulator of federal savings and loans) jointly announced that they would be scrutinizing regulated institutions involved in PDL. This arose from 'a variety of safety and soundness, compliance, and consumer protection concerns regarding payday lending programs". They declared that they would take corrective action in case of failure to follow prudent lending or consumer standards, and would charge the institutions for examination of their PDL agents. In its Advisory Letter, OTS urged savings and loans institutions (S&Ls) to consult their regional OTS office before engaging in PDL. The letter cited significant credit, counterparty, operational, reputation, compliance and legal risks for these institutions.11 Since issuing guidelines, the e ld.; Lexis/Nexis news articles. 9 Caskey (1994), Johnson (2002). 10 Lexis/Nexis news articles. 11 OCC-OTS joint press release and OCC Advisory Letter, November 27, 2000, www. occ. treas. qov,; R. Riccobono, 'Memorandum for Chief Executive Officers," OTS, November 27, 2000. 6 5 00094 the dti THE DEPARTMENT OF TRADE AND INDUSTRY SOUTH AFRICA regulators have moved against a number of banks engaged in PDL "rent -a -bank" arrangements. In these cases, for example that of Goleta Bank (California) and Ace Cash Express (Texas), major players in this business were forced to sever their relationships. Earlier this year, another federal regulator, the Federal Deposit Insurance Corporation (FDIC, regulator of federally -insured state banks), issued draft guidelines on PDL. The agency, noting that "payday lending is among the highest risk subsets of subprime lending", called for the following requirements: • a "cooling -off' period between loans • a calendar -year limit on loans to the same customer • classification of all payday loans as "substandard", thus requiring up to 100% capital provision. The FDIC also provided instructions on structuring third -party relationships, including indemnities. Consumer advocates have criticized the FDIC for not taking a tougher stance.12 4. Significance for South Africa and MFRC The preceding discussion is relevant to the MFRC less for the peculiarities imposed by the U.S. federal system than as an illustration. It shows the various ways in which a national government and 50 provincial governments have responded to a phenomenon comparable to South Africa's money -lending explosion. References Barr, Michael (2002), "Access to Financial Services in the 21St Century", Notre Dame Journal of Law, Ethics & Public Policy, vol. 16, p: 447. Caskey, John (1994), Fringe Banking: Check -Cashing Outlets, Pawnshops, and the Poor, New York: Russell Sage Foundation. FISCA (1998), "The Consumer's Choice: The Role of Deferred Deposit Services in Meeting Short Term Financial Needs", www.fisca.orq/whitepaper.htm Johnson, Creole (2002), "Payday Loans: Shrewd Business or Predatory Lending?" Minnesota Law Review, vol. 87, p.1. Schaaf, Scott (2001), "From Checks to Cash: The Regulation of the Payday Lending Industry", North Carolina Banking Institute, vol, 5, p,339. 12 Lexis/Nexis news articles, Consumer Federation of America, Memorandum Re: Draft FDIC Guidelines for Payday Lending, March 14, 2003. 6 00095 • Fact Sheet On Payday Loans Page 1 of 4 Consumers Union Nonprofit Publisherof Consumer Reports Health Food Telecom Financial Product Other Care Safety & Utilities Services Safety Issues About • News • Resaurtes • Tips • Support • Contact • Saareh FACT SHEET ON PAYDAY LOANS Consumers Union, AARP and Consumer Action have sponsored California legislation to protect consumers by creating reasonable oversight of the "payday loan" industry. The bill is Senate Bill 834, introduced by Senator Don Perata (D-Oakland). "Payday" loans are small, short-term loans made by check cashers or similar businesses at extremely high interest rates. Typically, a borrower writes a personal check for $100-$300, plus a fee, payable to the lender. The lender agrees hold onto the check until the borrower's next payday, usually one week to one month later, only then will the check be deposited. In return, the borrower gets cash immediately. The fees for payday loans are extremely high: up to $17.50 for every $100 borrowed(1) , up to a maximum of $300. The interest rates for such transactions are staggering: 911 % for a one -week loan; 456% for a two -week loan, 212% for a one -month loan. PROBLEMS CAUSED BY PAYDAY LOANS 1. Payday loans become a trap and are not used on a one-time basis as originally claimed by the industry. Consumers who must borrow money this way are usually in desperate debt. The high rates make it difficult for many borrowers to repay the loan, thus putting many consumers on a perpetual debt - treadmill. Because they cannot repay the loan, they often extend the loan by paying the $17.50 per $100 fee several times over. Thus, many consumers end up paying far more in fees than what they borrowed. This kind of credit puts people in worse financial shape then when they started. For already desperate people, borrowing more money at triple -digit interest rates is like throwing gasoline on a fire. When this practice was legalized in California three years ago the industry argued that payday loans were used for occasional emergencies for a short term(2) . This is simply untrue. According to a Wall Street analyst covering the industry, "the average customer makes 11 transactions a year, which shows that once people take [out a payday loan], they put themselves behind for quite some time.(3)" A manager of PD Chex, a payday lender in Colorado, estimated that only two percent of customers take only one loan. The owner of the store, Avrum Schulzinger, went on to say that"he expects all of PD Chex's customers to default eventually."(4) Stories from payday patrons make the results of these subsequent loans clear -consumers take them to meet a quick need, find themselves unable to meet their needs on their next payday, take subsequent loans and quickly get trapped by the outlandish fees. Payday lenders claim they are the only option for debt -strapped consumers. But borrowing more money at triple -digit interest rates is never the right solution for people in debt. Instead, payday loans make problems worse. As the data shows, virtually everyone takes more than one payday loan and thus the loans are similar to an addiction. This is not a legitimate loan product that benefits consumers. In fact, because most consumers believe they could be prosecuted for passing a bad check, the payday 0009E http://www.consumersunion.org/finance/paydayfact.htm 7/23/2004 Fact Sheet On Payday Loans Page 2 of 4 loan suddenly becomes their priority debt. Thus, the original debt problems that brought them to the lender often cannot be resolved. 2. Payday loan rates are way too high, especially given their low risk. The industry claims its extremely high fees are necessary on account of the risk being taken and its high loss ratio. In fact, in Colorado, one of the few places in the country that collects actual data from the industry, payday lenders charge -off only 3% of the loans made from 1996-1997, while their loans had an average APR of 485.26%.(5) Conversely, California banks charged off 2.7% of credit card debt in those same years, while having an APR of 15 - 22%.(6) Thus, the payday loan industry's claim of risk and loss simply does not stand up to close scrutiny and do not justify the high rates charged. Therefore, there is plenty of room for rates to decrease, as called for by SB 834. Further evidence of the low risk is the rapid growth of the industry, both in California and around the country. Since payday loans were legalized in California effective January 1, 1997, more than 3,500 payday loan outlets have opened in the state. The industry is extremely profitable. A State of Tennessee report stated that the industry return on equity in 1997 was 30%.(7) 3. Payday lenders are virtually unregulated in California. Unlike consumer finance lenders, such as Household Finance or Avco Finance, who also make small loans, payday lenders are virtually unregulated. Other states have much more regulation for payday lenders including audit, examination, bonding, and reporting requirements. 4. Consumers are easily deceived by payday loans. This transaction is inherently deceptive. By requiring consumers to turn over a post-dated check, consumers are often coerced or harassed by illegal threats or collection practices. For example, they will be threatened with jail for passing a bad check, even though the law specifically says they cannot be prosecuted if the check bounces. Payday lenders often deposit a check before the agreed -upon date, causing the check to bounce and imposing more fees on consumers. WHAT SB 834 DOES SB 834 is based on a model bill drafted by national consumer groups including the Consumer Federation of American and the National Consumer Law Center. The bill's major provisions are as follows: 1. Reduces the allowable fee for payday Loans. The bill essentially allows the same charges for payday loans as the Financial Code currently allows for small loans made by licensed finance lenders. The allowed charges would thus be a $5 "set-up" fee, plus a maximum interest rate of 36% per year (or 3% per month or 1.5% for two weeks). Thus, a $100, two -week loan would cost a maximum of $6.50 ($5 set-up fee plus $1.50 interest) as compared to current law allowing a $17.50 charge. A $200 loan, two -week loan would cost $8, rather than $35. 2. Provides greater disclosure and other consumer protections: (a) Rollovers: The bill provides stronger protections against "rollover" or extensions of the original loan. For example, a check casher would be 00097 http://www.consumersunion.org/finance/paydayfact.htm 7/23/2004 Fact Sheet On Payday Loans Page 3 of 4 prohibited from entering into a second loan with a consumer until 30 days have elapsed from the teen ination of the first loan. If lenders wish to extend the time for repayment of the loan, they may do so, but cannot charge a new fee for doing so. (b) Improved disclosures: The bill requires lenders to give a notice to borrowers stating that borrowers cannot be threatened with prosecution for passing a bad check if they cannot repay the loan. (c) Stronger penalties for violations: The bill allows consumers to recover civil penalties of $2,000 per violation of the law, as well as actual damages, and punitive damages for intentional violations. 3. Provides for greater regulatory oversight by the Department of Justice, including: (a) Licensing and bonding: Lenders must obtain a license and maintain a bond to pay claims brought by consumers. (b) Record -keeping: Lenders must maintain records of each loan to allow examiners to determine if the law was followed. (c) Reporting: Lenders must file annual reports detailing loan volume, average annual APR of loans and length of loans, along with other information. ALTERNATIVES TO PAYDAY LOANS Payday lenders are not the only alternative for consumers facing debt problems. After all, they were legalized in California two years ago. Consumers obviously managed to deal with their debt for decades before anyone had heard of payday loans. 1. Negotiate a payment plan with creditors. The best alternative to payday loans is for consumers is to deal directly with their debt. Most creditors will accept partial payments if one sets up a payment plan. Consumers can negotiate such plans themselves or contact the local nonprofit Consumer Credit Counseling Services (CCCS) office for help. Paying off debts through a payment plan, rather than taking on even more debt at exorbitant interest rates, is the best way to deal with financial problems. CCCS offices also teach money management skills to help consumers prevent financial problems in the first place. 2. Credit cards/Secured credit cards. Some credit card companies specialize in consumers with financial problems or poor credit histories. Consumers should shop around and not assume they do not qualify for a credit card. Secured credit cards are another option. A secured card is basically a credit card tied to a savings account ($500 for example). The card's credit line is the amount deposited in the savings account. The funds of the account "secure" the amounts charged on the card. Once a consumer has successfully used the secured card for 6 months - 1 year, they can then qualify for a regular unsecured credit card. 3. Advances from employers. Many employers will grant paycheck advances to employees. Because this is a true advance, and not a loan, it obviously is a better alternative than payday lenders. 4. Credit unions. Credit unions offer small, short-term loans to their members. Many more consumers 00098 http://www.consumersunion.org/finance/paydayfact.htm 7/23/2004 Fact Sheet On Payday Loans Page 4 of 4 can join credit unions now that affiliation requirements are less strict. 5. Overdraft protection. Most banks offer checking accounts with overdraft protection. Payday lenders claim their fees are lower than paying bounced check fees, but a better alternative is to prevent bounced check fees in the first place. 6. Lines of credit from finance lenders. Finance lenders such as Household offer small lines of credit to consumers with less than perfect credit histories. These credit lines range from $2,000-$5,000 with interest rates from 25-35% APR. Footnotes: (1) Current law allows lenders to charge 15% of the 'face amount of the check." Civ. Code Sec. 1789.33 (emphasis added). Because the face amount of the check must also include the fee for the loan, in order to borrow a net amount of $100, the consumer must write a check for $117.62 ($117.625 x .15 = $100). Most lenders simply round off the $17.62 amount to $17.50. (2) Analysis, Assembly Committee on Banking and Finance, SB 1959 (Calderon), p. 5 ("Arguments in Support') (June 24, 1996). (3) M. Anderson, "Cash poor, choice rich, Paycheck -advance firms move in," Sacramento Business Journal (Jan. 11, 1999). (4) A. Berenson, "Fringe banking hot despite bite, Payday loans' interest rates legal," The Denver Post (May 5, 1996). (5) State of Colorado Department of Law, Office of the Attorney General, "Post -Dated Check Cashers Supervised Lenders' Annual Report." (1996 and 1997) (6) California Bankers Association. (7) State of Tennessee, Dept. of Financial Institutions, Report to the General Assembly on the Deferred Presentment Service Act at 9 (1998). Consumers Union's West Coast Regional Office November, 1999 [ Health ] [ Finance ] [ Food ] [ Product ] [ Telecom ] [ Other ] [ About CU ] [ News ] [ Resources ] [ Tins ] [ Search ] [ Home ] Please contact us at: http://www.consumersunio.n.org/contact.htm All information C 1998 Consumers Union 00090 http://www.consumersunion.org/finance/paydayfact.htm 7/23/2004 Quantifying the Economic Cost of Predatory Payday Lending Keith Ernst, John Farris, and Uriah King December 18, 2003 Center for Responsible Lending 302 West Main Street Durham, NC 27701 http://www.responsiblelending.org 00100 Executive Summary Our analysis of quantitative data reveals that payday lenders collect the vast majority of their fees from borrowers trapped in a cycle of repeated transactions, where borrowers are forced to pay high fees every two weeks just to keep an existing loan outstanding that they cannot afford to pay off. This cycle (the "debt trap") locks borrowers into revolving, high-priced short-term credit instead of meeting the need for reasonably - priced, longer -term credit. The Center for Responsible Lending conservatively estimates that predatory payday lending fees -- those extracted from borrowers caught in a debt trap of repeated transactions — costs U.S. families $3.4 billion annually.' Further, we find that this figure is driven by the churning of payday loan accounts as follows: * 91% of all payday loans are made to borrowers with five or more payday loans per year; * Two in three borrowers (66%) incur five or more payday loans per year, while nearly one in three (31%) receive twelve or more loans per year; and * Borrowers, on average, receive 8 to 13 payday loans per year. Introduction The payday lending industry, which was virtually non-existent ten years ago, has experienced explosive growth -- from $10 billion in 2000 to $25 billion in 2003.2 Payday loans are short-term loans for immediate cash, typically secured by a borrower's written check or authorization for automatic withdrawal from the borrower's bank account. They. are called "payday loans" because they are marketed as a tool for cash -strapped borrowers to make it to the next paycheck. To get a loan, a borrower gives a payday lender a postdated check (e.g., dated on the borrower's next payday) and receives cash, minus the lender's fees.3 On a $300 payday ' This estimate is conservative because it does not account for additional costs related to insufficient fund (NSF) fees, bounced check fees, disparities between the credit risk and effective interest rate charged borrowers, and increased public costs due to collection efforts and payday lending induced bankruptcies. Moreover, some consumer advocates contend that the practice itself is inherently abusive and that all fees from payday lenders should be considered predatory. See e.g., Consumer Federation of America, "Consumer and Community Groups Call on Federal Reserve Board to Halt Rent -a -Bank Payday Lending by Delaware Bank" press release (April 15, 2003) (available at http://www.consumerfed.org/FedLetter.html, last verified December 16, 2003). 2 Stephens Inc., "Payday Advance — The Final Innings: Standardizing the Approach" at p5 (,September 22, 2000) year 2000 data); Carr, James H. and Schuetz, jenny, °` " a S s mil, is s '� _, Update on,the ra h ecent n ustry'DevU ppments" (September26 2003) (year 20 d..` 4au ert Faris. "Payday Lending: A Business Model that Encourages ChronicBorrowirig." Economic Development Quarterly, Vol. 17, No. 1, at p8 (February 2003). 3 Alternatively, borrowers may authorize the lender to electronically draw down a future amount from their account. 2 IOW 00101 loan, a consumer typically incurs $45 in fees and receives $255 cash. The lender then holds the check until the borrower's next payday, which generally falls anywhere from less than a week to a month later. Typical annual percentage rates (APR) for payday loans range from 391% to 443%.4 Entering Cycles of Debt Since the loan comes due on payday, borrowers expect to have money in their account to cover the check. Many borrowers, however, find that paying back the entire loan on payday would leave them without funds necessary to meet basic living expenses, such as electricity, rent and groceries. Borrowers who do not have the funds to repay the loan and meet other expenses must make one of three choices:(1) extend or "rollover" the loan, (2) pay off the loan but borrow again from the payday lender immediately in a "back-to-back" transaction, or (3) default, and consequently incur bounced check fees by the payday Iender and insufficient fund (NSF) fees by the borrower's bank while still owing the full amount of the original post-dated check. Payday Loan "Rollovers" or Extensions: With a rollover or loan extension, the borrower who is unable to repay the loan at the end of two weeks is offered the opportunity to pay $45 to extend the loan term for another two weeks. The borrower still owes the original $300. Until the borrower can come up with $300 to repay the loan in full, the borrower must make a $45 payment every two weeks to avoid default. This can go on for months and years, with the borrower paying $45 in fees every two weeks for no additional cash advanced. In less than twelve weeks, the customer has paid the lender fees that total more than the $255 he or she received, but still owes all the money borrowed. On a yearly basis, such a borrower pays $1,170 in finance charges in exchange for the use of $255 in cash. Payday Loan "Back -to -Back" Transactions: While some states attempt to restrict payday loan extensions or rolling over payday loans,5 many lenders circumvent these rules by using "back-to-back" transactions. In a back-to-back transaction, the borrower pays off the first loan, but must immediately borrow again to meet financial needs until his or her next payday. To repay the first loan, the borrower lets the lender cash the original post-dated check or pay the lender $300 in cash to tear up the check. In either case, they borrow again immediately. The net cost to the borrower for a back-to-back transaction is the same as an extension, $45 in fees every 4 Stephens Inc. (2003) supra n2 (placing the general cost of payday loans between a $15 and $17 fee per $100 loaned for a period of approximately 14 days, amounts equivalent to annual percentage rates of 391% and 443% respectively). 5 A survey of 50-states' laws reveals that no state law effectively restricts rollovers, back-to-back transactions and frequent usage of payday loans, except for those that have wholly prohibited payday lending, including Alaska, Connecticut, Georgia, Maine, Maryland, Massachusetts, Michigan, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont and West Virginia. 3 00102 two weeks for no additional money. One borrower, for example, testified in North Carolina that she had 35 back-to-back transactions over a 17-month period.6 Default on payday loan: The third option, which borrowers have strong incentives to avoid, is to default. In fact, most borrowers pay back their debt : Further, borrowers know the lender is holding their check. If the borrower does not extend or renew the loan, the lender will simply cash their check. If there are insufficient funds in the account, borrowers will face considerable NSF charges from the bank and bounced check fees from the payday lender. In fact, a lender can pass the check through borrowers' account repeatedly, increasing fees significantly. Third, borrowers sometimes face a range of aggressive collection practices, including being told that they may face criminal charges for writing a bad check, even though state law may prohibit it.8 Churning Payday Borrowers Examinations by state regulators suggest that rollovers and back-to-back transactions are widespread in the payday lending industry (see Table 1). In fact, studies suggest that the entire payday lending industry relies on a business model that encourages chronic borrowing.9 6 See Testimony of Lisa A. Engelkins submitted to the North Carolina State Senate Commerce Committee (June 17, 2003) (retelling experience of entering into 35 back-to-back payday loan transactions over 17 months, paying $1,254 in fees to extend a $255 payday loan, and yet still owing the original $300) (on file with authors). In Virginia for 2002, the percentage of payday loans charged off as uncollectible was 3.4%. Virginia Bureau of Financial Institutions, "Supplement to the 2002 Annual Report of the Bureau of Financial Institutions" (2002) (available at: http://www.state.va.us/scc/division/bankins/forms/ar04-02.pdt). In North Carolina for 2000, only 6% of payday checks were returned for insufficient funds (NSF) and lenders recovered 69% of the value on these checks. North Carolina Commissioner of Banks Data (2001) (available at: http://www.banking.state.nc.us/cc/eccon00.Ddf). 8 See e.g., O'Malley, Chris, "After Court Crackdown, Number of Indiana Payday Lenders Drops by 70 percent" Indianapolis Star (March 7, 2003) (citing new Indiana law prohibiting threats of criminal prosecution on payday loans); Caldwell, Bert, "A message to payday lenders" The Spokesman -Review (May 18, 2003) (documenting borrower claim involving threat of criminal prosecution arising from a payday loan). Y Stegman, Michael and Robert Faris supra n2 at pp 8-32; See also, Caskey, John P. "The Economics of Payday Lending." Center for Credit Union Research. (2002). 4 00103 _..,,., .. i cpcaL ourruwtn; oy Available State Data"' State Average Loans per Borrower California" 11 Illinois 12 13 Indiana 13 13 North Carolina14 8 Wisconsin15 12 Our own examination of available data is consistent with these findings that churning — inducing borrowers to extend their payday loan or enter into a back-to-back transaction — is largely responsible for the payday lending industry's volume (see Appendix). Specifically, our analysis shows that borrowers who receive five or more payday loans per year account for 91% of payday lenders' revenues. Fully 56% of revenues are generated from borrowers who have 13 or more payday Ioans per year. In fact, the number of borrowers that use the payday loans 13 or more times per year (27% of borrowers) is comparable to the number of borrowers that use it only occasionally, four or fewer times per year (33% of borrowers).16 10 Based on authors' survey of state payday lending reports that quantify loans per borrower. See supra n21 for a discussion of the exclusion of Florida data. IZ Editorial, "California: Stop legal loan sharks" Los Angeles Times at p.B10 (May 14, 2001). 1Illinois Department of Financial Institutions, Consumer Credit Division. (n.d.). "Short term lending final report."at p. 26 (available at: http://www.state.il.us/dfi/ccd/pdfs/Shortermpdf). 13 Data from the Indiana Department of Financial Institutions(based on a examination period conducted from July 1, 1999 to September 30, 1999) "Summary of Payday Lender Examination," at p3. (available at:http://www.in.govidfi/legal/paydaylend/Payday.PDF). 14 See Appendix (Table Al). The eight loan average reported here for North Carolina significantly underestimates the actual average because it does not account for borrowers use of multiple shops. The data was presented in its raw form so that the North Carolina figure would be comparable to the other states, which have not employed the multi -shop methodology we use in this report. 15 Caskey, John P. "The Economics of Payday Lending," at p34. Center for Credit Union Research. (2002). 16 See Appendix. 00104 Figure 1: Payday Loan Fees Paid by Repeat Borrowers 40% 30% 20% 10% 0% 1 to 4 5 to 12 13 to 20 21+ BlPercent of Fees • Percent of Borrowers Loans per Borrower Sources: NC Banking Commissioner (2001), Elliehausen (2001) (see Appendix for calculations). While proponents of payday lending argue that it is a helpful short-term solution for borrowers," our analysis shows that people who use payday loans in this manner account for only a small fraction of payday lenders' revenues. Indeed, if payday loans were truly intended to meet a borrower's temporary need for a small amount of cash, then one would expect to see industry revenues driven by one-time or other limited -use borrowers.'$ For borrowers taking out five, ten, or even twenty or more loans per year, payday lending functions as chronic debt, instead of helpful credit.19 Quantifying the Economic Cost of Predatory Payday Lending A borrower facing financial trouble will rarely be able to overcome it in a short period of time, such as the two -week term most often provided by payday lenders, and then immediately be in a position to pay back the loan in full. Most borrowers will need several months, perhaps a year, to have a legitimate opportunity to solve the problem. Our position is that the minimum time that payday borrowers would need in order to 17 Laitner, Bill, "Bill would regulate Payday Loan Businesses; Critics say it gives credence to abusive industry" Detroit Free Press (November 12, 2003) (quoting Kelly Rossman-McKinney, spokesperson for Check `N Go, "It's really designed for short-term emergency needs, not for someone to depend on over a long period of time."); Hale, John, "Payday Lenders Numbers Grow" Danville Register & Bee (April 14, 2003) ("It's supposed to be a short-term loan to help in emergency situations", quoting branch manager of First Choice Cash Advance); Williams, Susan, "Bills may expand Payday" Charleston Gazette (February 12, 2003)(quoting Vice President of First American Cash Advance, "It helps in emergencies. If the car breaks down before payday, we can help."); Check 'N Go website (http://www.checkngo.corn/questions.asp) ("...a cash advance is a short-term solution to an immediate need, it is not intended for repeated use in carrying an individual from payday to payday."). t8 See Appendix. 19 Cf., Illinois Department of Financial Institutions supra n9 at p30 ("The problems arise when customers consistently incur expenses which exceed their income and are unable to free themselves from this biweekly financial cycle. These are the truly `Captive Borrowers'."). 6 00105 straighten out their finances sufficient to pay back the emergency funds is 90 days.20 With a minimum 90-day term, a borrower would receive no more than four legitimate payday loans in a single year. Another way of looking at the matter is that, if payday lending really is set up for the occasional emergency as payday lenders claim, allowing one of these to occur every quarter should be sufficient to meet the credit needs of these borrowers. Accordingly, we chose five or more loans as the dividing line above which borrowers should be considered harmed by repeated payday Loans. To quantify the economic costs of predatory payday lending, we aggregated the amount of fees paid on payday loans by borrowers who received five or more payday loans in a calendar year. Our calculations use data from the North Carolina Commissioner of Banks that details how often borrowers use a single payday lender in a year. To the best of our knowledge, these data are the only loan level measurements available that allow us to determine confidently the percentage of revenues obtained from borrowers who take out five or more payday loans from one lender in a calendar year.21 The North Carolina data appear to be representative of the rest of the country, and in fact, show fewer payday loans per borrower than in other states, which would have the effect of understating the amount of predatory payday Iending.22 However, the North Carolina data do not account for borrowers who use more than one payday lender in a year. A national survey shows that 47% of payday borrowers will use more than one payday lending company ("shop") per year.23 Consequently, in our analysis we account for payday lending to borrowers from multiple shops to get a more accurate assessment of borrowers' costs.24 Our analysis (see Appendix) reveals that 91 % of payday loans are made to borrowers who receive five or more loans per year (that is, by definition, predatory payday lending). Multiplying 91 % of loans times the $25 billion annual volume of payday Iending25 times 20 In addition, we believe that borrowers should have the ability to make installment payments as opposed to having the total loan amount due at the end of the term. 21 Florida collects similar loan level data, but its data are not representative because the state has a prohibition against making a payday loan while another loan is outstanding with another lender, and the prohibition is enforced by the use of a statewide database that tracks individual borrowers. Other states allowing payday lending lack either this prohibition or, perhaps more importantly, the database to track the information. Further complicating any usage of the Florida database, payday lenders partnering with banks through "rent a charter" schemes claim preemption of state payday laws and routinely do not follow state law requirements. 22 Data collected by other state regulatory agencies show similar patterns of lending. See, Table 1 supra p5 and accompanying discussion. 2 Elliehausen, G., & Lawrence, E. C. "Payday advance credit in America: An analysis of consumer demand" (Monograph. 35) Georgetown University, McDonough School of Business, Credit Research Center at p40 (2001). 24 Even the North Carolina data has limitations, though it tends to undercount rather than over count the number of borrowers with 5 or more loans in a year. For example, since the data only examine loans in a given calendar year, borrowers taking out four loans in November and December and four more loans in January and February would not be captured using our methodology. 25 Stephens Inc. (2003) supra n2 (estimating 2003 U.S. payday loan volume from $25 to 27 billion). 7 00106 the typical 15% fee charged ($15 fee on a $100 check, for $85 in loan proceeds)26 results in a total estimated cost of predatory payday lending of $3.4 billion. Table 3: Economic Cost of Predatory Payday Lending Factor Amount Portion of loans to borrowers 91% with 5 or more payday loans per calendar year 2003 U.S. payday volume $25 billion Typical industry fee 15% Total cost $3.4 billion Source: Authors' Calculations (see Appendix ) The $3.4 billion cost associated with predatory payday lending reflects the experiences of the more than two of every three payday loan borrowers who find themselves with five or more loans. Even if one disputes the appropriate cutoff for how many loans in a year constitutes legitimate "emergency" use, the figures still demonstrate that the economics of the payday lending industry are driven by borrowers in the debt trap, perpetuating rather than alleviating the emergency facing the borrower. Were we to assume that a borrower could take six loans a year on an emergency basis, the total fees attributable to payday loans to borrowers who received seven or more loans would still amount to $3.1 billion annually. Even if the assumption that the appropriate number of payday loans a borrower should receive is twelve (one every single pay period for a borrower paid on a monthly basis), one would conclude that predatory payday lending costs Americans $2.1 billion annually. Our estimate may well understate the true costs of predatory payday lending. In addition to our conservative assumptions, we have not included any costs of loans to borrowers with four or fewer payday loans, despite serious concerns raised by national consumer advocates with regard to those loans. 7 26 According to the Missouri Department of Economic Development, $15 is the most common fee per $100 payday loan, but still less than the average fee. (http://www.missourifmance.org/pdfs/survey.pdf). A 2001 survey by the Consumer Federation of America and U.S. Public Interest Research Group found average fees of $18.28 per $100. See Fox, Jean Ann and Mierzwinski, E. "Rent -A -Bank Payday Lending: How Banks Help Payday Lenders Evade Consumer Protections" at p5 (November 2001). Also, the $15 fee per $100 is charged by some of the largest payday lenders, including Advance America and Check 'N Go. See "Race to the Bottom," Forbes (July 21, 2003). See also, Stephens, Inc. (2003) supra n2. 27 These concerns include: marked disparities between the credit risk and effective interest rate charged on payday loans; lending without regard to the ability to repay; the coercive nature of holding a check as a payment mechanism; the short-term, non -installment nature of payday loans; additional costs related to NSF fees and bounced check charges; and public costs arising from collection efforts and associated bankruptcy filings. See Skillern, Peter. "Small Loans, Big Bucks: An Analysis of the Payday Lending Industry in North Carolina" (2002) (comparing payday loans to returns on equity from credit cards); see also, Fox, Jean Ann and Mierzwinski, E. supra n26 (detailing additional rate -risk comparisons with other types of financial products); Concerns were also raised in conversations with Elizabeth Renuart, National 8 00107 Conclusion By using a conservative methodology, we estimate that predatory payday lending costs Americans $3.4 billion annually. While an understatement of the actual cost of predatory payday lending experienced by borrowers, our examination of the data shows that borrowers caught in the debt cycle provide the lion's share of payday lenders' revenues. Consumer Law Center (December 1, 2003); Margot Saunders, National Consumer Law Center, (December 4, 2003); and Jean Ann Fox, Consumer Federation of America (December l5, 2003). 9 00108 Appendix Estimating Borrowers with Five or More Payday Loans Annually Table Al summarizes data from the North Carolina Commissioner of Banks' office.28 Table Al: North Carolina Payday Lending, 2000 No. of customers 431,214 Avg. loan amount $240.37 Fee per loan 14.9% Avg. loans per customer 8.1 Revenues $124,166,636 The methodology described in this Appendix projects the total number of loans made to borrowers, using (1) number of loans reportedly made to each borrower by individual lenders and (2) multiple payday shops usage data from a survey of borrowers. The projection was necessary because the North Carolina Commissioner of Banks' data only reflect borrowers' experiences with individual lenders. Consequently, these data do not accurately account for the number of loans taken by borrowers who use multiple lenders. For example, if one borrower received one loan from two different lenders (for a total of two loans), the data would incorrectly account for the two loans as one loan each by two borrowers (for a total of two loans). This distinction is important since, according to survey data (see Table A2), borrowers do in fact use more than one company to obtain their payday loans.29 Thirty percent of borrowers reported using two lenders, eleven percent used three lenders, and six percent used four or more lenders.30 While several findings in the underlying study raise concerns due to the very low survey response rate, the statistics on multiple lender use are supported by anecdotal research from other organizations.31 28 Office of the North Carolina Commissioner of Banks, "2000 ANNUAL REPORT OF CHECK CASHING BUSINESSES LICENSED UNDER ARTICLE 22 OF CHAPTER 53 OF THE NORTH CAROLINA GENERAL STATUTES FACT SHEET" (available at: htt,:I/www. banking. state. nc. us/cc/cccon00. pdf). 29 Elliehausen, Gregory and Lawrence, Edward C. "Payday Advance Credit in America: An analysis of customer demand." Monogram #35, Credit Research Center McDonough School of Business Georgetown University at p40 (April 2001). 30 Id. 31 See e.g., Stegman, Michael and Robert Faris, supra n2 at p21. 10 00109 Table A2: Reported use of multiple payday lenders Borrower Experience Percent Used only one company 53% Used two companies 30% Used three companies 11% Used four or more companies 6% ource: Elliehausen (2001) As noted, our baseline for accounting from borrowers who utilize multiple lenders or "shops" is the North Carolina data. We derive the total number of loans made to borrowers at individual shops simply by multiplying the number of borrowers by the corresponding number of loans. So, for example, the first row of Table A3 shows that 66,921 borrowers reported receiving one loan from a single shop. However, in fact, the survey data on multiple shop usage indicates that just 53% of these borrowers received loans only from the shop that reported the corresponding data. This means that 47% used more than one shop and, consequently, received more than the one loan indicated in the raw data. To more properly account for borrowers' experiences, we must adjust for this multiple shop use.32 Examining more closely the number of loans attributed to borrowers reported in the Commissioner of Banks' database as having received one loan from a single shop (66,921) and applying the data from Table A2 on multiple shop usage, we can gain a more accurate understanding of those loans as follows: * 53% of the 66,921 loans attributed to borrowers with one loan need no adjustment = 35,468 * 30% of the 66,921 loans attributed to borrowers with one loan actually went to borrowers who received at least one additional loan (total of two loans) = 20,076 * 11% of the 66,921 loans attributed to borrowers with one loan actually went to borrowers who received at least two additional loans (total of three loans) = 7,361 * 6% of the 66,921 loans attributed to borrowers with one loan actually went to borrowers who received at least three additional loans (total of four loans) = 4,015 32 To be conservative, we assumed that borrowers who reported using four or more lenders only used four. Further, we assumed that borrowers who incurred loans from multiple lenders only took out one additional loan from each additional lender. In doing so, we believe we have underestimated, perhaps substantially, the number of loans made to borrowers with five or more loans in a year. In addition, the raw data on number of borrowers with multiple loans bundles all loans above 27 per year into one group. Once again to be conservative, we have assumed that all borrowers reported in this group received the minimum possible 27 loans per year. 11 00110 It is also helpful to understand this methodology by examining a single row in our calculation spreadsheet. Turning to row 5 of Table A3, we can now understand that only 53% of those loans reported as made to borrowers with 5 loans are correctly accounted for in the data (53% * 131,205 = 69,539). However, borrowers in rows two through four of the table also used additional lenders and therefore account for many of the loans we project as made to borrowers with five loans (Column Y = A + B + C + D). By utilizing the survey data we can perform the following calculations to project the actual number of borrowers who received five loans, accounting for multiple shop use: * 53% of 131,205 loans attributed to borrowers with five loans from one lender = 69,539 (Column A). * 30% of 119,100 loans attributed to borrowers with four loans from one lender (but actually received at least one more from a second lender for a total of five) = 35,730 (Column B). • 11% of 106,362 loans attributed to borrowers with three loans from one lender (but actually received at least one more from two additional lenders for a total of five) = 11,700 (Column C). * 6% of 89,078 loans attributed to borrowers with two loans from one lender (but actually received at least one more from three additional lenders for a total of five) _ 5,345 (Column D). * Total of all such borrowers = 122,313 loans to borrowers with five loans total from all lenders (Column Y). To review, to calculate the number of loans reported to "single shops" (X), we multiply the number of borrowers (F) from existing data33 by the corresponding number of loans (Q) in equation one. Subsequently, we use this figure as a base for estimating loans resulting from borrowers' use of multiple shops in equation two. Equation two embodies the assumption that borrowers take only one additional loan from each additional lender they reported utilizing. Finally, in equation three, we provide projections for number of borrowers at specified loan levels by simply dividing the projected number of loans at multiple shops (Y) by the related frequency of borrowing (Q). From these figures we are able to use equation four to calculate the total amount of fees derived from borrowers taking five or more payday loans per year. As detailed in the paper, this calculation is a function of the portion of loans to borrowers with five or more payday loans, a conservative estimate of typical payday loan fees (15 percent), and total estimated 2003 payday lending national volume ($25 billion). EQUATION 1: Xi = Fi Qi EQUATION 2: Y, = 0.53X, + 0.30X0_1) + 0.11X0_2) + 0.06X0_3) 33 Office of the North Carolina Commissioner of Banks supra n28 (year 2000 data). 12 001I,1 EQUATION 3: Zi = Yi / Qi EQUATION 4: A = (? Y(i>4) / ? Yi) * 15% fee * $25 billion = $3.4 billion Table A3: Projections of borrowers' experiences with multiple shop payday lending No. of Lo Multiple Shop Multiple Shop an s Loans Projected Number of Cumulative Share of per Single to Borro Loans to Loans to Borrowers (Z) Borrowers Bor Shop wers Borrower Borrower ro Numb Using s Using s Using Loans to Multiple we erof Single- One Two Three Borrowers Multiple Shop r Borro Shop Lender Lenders Lenders Using Four Shop Cumulati (Q) • wers Loans (A) (B) (C) Lenders (D) Projected ve Share (Fp (X) (53%) (30%) (11%) (6%) Loans (Y) of Loans 1 2 66,921 44,539 66,921 89,078 106,36 35,468 47,211 20,076 35,468 67,288 1.0% 3.0% 35,468 33,644 9.3% 18.2% 3 35,454 2 119,10 56,372 26,723 7,361 90,457 5.6% 30,152 26.1% 4 29,775 0 131,20 63,123 31,909 9,799 4,015 108,845 8.7% 27,211 33.2% 5 26,241 5 139,99 69,539 35,730 11,700 5,345 122,313 12.2% 24,463 39.7% 6 23,332 2 144,38 74,196 39,362 13,101 6,382 133,040 16.0% 22,173 45.5% 7 20,627 9 157,35 76,526 41,998 14,433 7,146 140,102 20.1% 20,015 50.7% 8 19,669 2 160,09 83,397 43,317 15,399 7,872 149,985 24.4% 18,748 55.7`, 9 17,788 2 168,15 84,849 47,206 15,883 8,400 156,337 28.9% 17,371 60.2% 10 16,815 0 176,77 89,120 48,028 17,309 8,663 163,119 33.6% 16,312 64.5% 11 16,070 0 206,38 93,688 109,38 50,445 17,610 9,441 171,184 38.5% 15,562 68.6% 12 17,199 8 143,49 6 53,031 18,497 9,606 190,519 44.0% 15,877 72,8% 13 11,038 4 132,65 76,052 61,916 19,445 10,089 167,502 48.8% 12,885 76.2% 14 9,475 0 129,01 70,305 43,048 22,703 10,606 146,662 53.1% 10,476 78,9% 15 8,601 5 133,45 68,378 39,795 15,784 12,383 136,341 57,0% 9,089 81.3% 16 8,341 6 129,11 70,732 38,705 14,592 8,610 132,637 60.8% 8.290 83.5% 17 7,595 5 123,13 68,431 40,037 14,192 7,959 130,818 64.6% 7,683 85.5% 18 6,841 8 119,37 65,263 38,735 14,680 7,741 126,419 68.2% 7,023 87.4% 19 6.283 7 117,84 63,270 36,941 14,203 8,007 122,421 71.7% 6,443 89.0% 20 5,892 0 110,83 62,455 35,813 13,545 7,747 119,560 75.2% 5,978 90.6% 21 5,278 8 105,57 58,744 35,352 13,131 7,388 114,616 78.5% 5,458 92.1% 22 4,799 8 108,60 55,956 33,251 12,962 7,163 109,333 81.6% 4,970 93.4% 23 4,722 6 57,561 31,673 12,192 7,070 108,497 84.7% 4,717 94.6% 123,09 24 5,129 6 65,241 32,582 11,614 6,650 116,087 88.1% 4,837 95.9% 25 4,164 104,10 55,173 36,929 11,947 6,335 110,383 91.3% 4,415 97,0% 13 00112 0 156,49 26 6,019 4 82,942 31,230 13,541 6,516 134,229 95.1% 5,163 98.4% 27 2,607 70,389 37,306 46,948 11,451 7,386 103,091 98.1% 3,818 99.4% 28 0 0 0 21,117 17,214 6,246 44,577 99.4% 1,592 99.8% 29 0 0 0 0 7,743 9,390 17,132 99.9% 591 100.0% 30 0 0 0 0 0 4,223 4,223 100.0% 141 100.0% Tot al 431,21 4 3,472, 985 3,472,985 _ 380,565 Raw data from North Carolina Commissioner of Banks (2001). 14 0 01 13 - 2 - LRB-00-WB-7 State Regulation of Payday Loans State Applicable % Max. Fees Effective APR Interest Cap Min./Max. Term Maximum Amount Percent/$ for 14 days' Alabama2 36% ' Alaska 36 Arizona 36 Arkansas 6/31 days $400 ck IO% + $10 ° California _/30 days $300 ck15% 459 of ck 546 /o Colorado Connecticut` 28.52 NA $500 ck ___ $25 650 Delaware Florida --- NA3 NA 10% + $5 419 Georgia* 57.68 Hawaii --- /31 days $300 ck 15% of ck 459 Idaho — Illinois Indiana 36 Iowa - _/31 days $500 ck $15 first $1004 459 Kansas /30 days $860 5 390 Kentucky 14/60 days $500 ck $IS per $100 459 Louisiana --- _/30 days $350 loan 16.75% ck 520 Maine* 30 ___ Maryland 33 Massachusetts* 39.86 Michigan6 25 —_ Minnesota -- _/30 days $350 loan --S 390 Mississippi _/30 days $400 ck 18% ck 572 Missouri 14 days/10 mo. $500 loan $15 per $100 390 Montana /31 days $300 loan 25% 871 Nebraska — _/31 days $500 ck $15 per $100 459 Nevada — NA %7 NA New Hampshire8 24 -- New _ Jersey 30 New Mexico New York* 25 ___ North Carolina -- /31 days $300 ck 15% ck 459 North Dakota 30 --- — Ohio -- _/6 mo. $500 loan 5%/$5-$50 390 Oklahoma 30 days/NA $102 5 364 Oregon --- -- — Pennsylvania* 23.75 _ Rhode Island 36 — — -- __ South Carolina --- /31 days $300 loan 15% ck 459 South Dakota _ Tennessee _/31 days $500 ck 15% ck Texas 31.65 — __- 459 Utah NA NA No limits Vermont 24 -__ --- Virginia* 36 --_ —_ Washington --- /31 days15% West Virginia* 31 — -$500 loan 390 Wisconsin ___ — -- __ Wyoming _/30 days NA 20% or $30 780 NA - Not applicable; ck - check. *Check casher's law bans payday loans. 'Approximate annual percentage rate (APR) without compounding. 2Payday loans permitted under court injunction while litigation pending. 3Loan roll-overs or extensions violate Florida's usury and/or consumer finance act. 4$10 on each additional $100. SScale of fees and/or percentages related to size of loan. 6License not required if interest charges are no more than 5% per annum plus the check casher's fee. Check casher's fees not regulated. 7Maximum loan not to exceed one-third of borrower's expected net monthly income. BEffective 1/1/2000 licensed lenders can charge any rate agreed to by customers, thereby allowing payday loans. Sources: Compiled from various publications of the Consumer Federation of America, updated through September 1999. 00114 East Valley Parkway Plan forwarded to City Council 1 Escondido to consider restricting businesses; [NI Edition] Craig Gustafson. The San Diego Union - Tribune. San Diego, Calif Sep 16, 2004. pg. NI.1 Sam Abed, who owns the Midway Mobil gas station on East Valley Parkway, called the strip a "dumping ground" for the city's undesirable businesses. Of the 400 businesses on East Valley Parkway, 160 fit the profile of proposed prohibited uses -- including 45 social -service groups, eight check -cashing outlets and four tattoo shops -- according to a report by the East Valley Association, the group spearheading the initiative. 1 MAP; ESCONDIDO -- The city of Escondido is proposing to ban certain kinds of businesses, including resale shops, dollar stores and check -cashing outlets, within this 255-acre area along East Valley Parkway.; Credit: DAVE HARDMAN / Union -Tribune Full Text {&92 wofd Copyright SAN DIEGO UNION TRIBUNE PUBLISHING COMPANY Sep 16, 2004 ESCONDIDO -- A plan aimed at revitalizing East Valley Parkway by limiting businesses that target low-income customers will go before the City Council next week. The plan creates a banned list of businesses -- including resale shops, 99-cent and similar maximum -price stores and check -cashing outlets — that have proliferated on a two-mile section of the road for years. The Escondido Planning Commission approved the East Valley Parkway Area Plan 4-1 late Tuesday night. Supporters say the plan will entice higher -end retailers to develop on East Valley and prepare the area for an influx of residents from future housing developments on the city's east end. Opponents describe the plan as a troubling and elitist strategy that will handicap landlords who already struggle with vacancies. Sam Abed, who owns the Midway Mobil gas station on East Valley Parkway, called the strip a "dumping ground" for the city's undesirable businesses. 'We cannot be a second-class citizen on East Valley Parkway and we're not going to take that anymore," said Abed, a City Council candidate in the fall election. Other restricted businesses include swap meets, tattoo parlors, thrift shops and stores that rent or sell vehicles and equipment. Social services and charitable organizations would be prohibited from distributing goods or services on the retail strip, but could have administrative offices there. If approved, the plan would not affect existing businesses. Jim Crone, who owns a commercial real estate company with property on East Valley Parkway, said the plan is filled with arrogance and will hurt the area in the long run. "I am not impressed with it at all," Crone said. "You're creating a problem on East Valley Parkway 00115 that will take years to fix." By restricting uses, city officials simply will increase the value of the shops that are grandfathered in, Crone said. Those shops still will thrive because they wouldn't exist without a large customer base, he said. Of the 400 businesses on East Valley Parkway, 160 fit the profile of proposed prohibited uses -- including 45 social -service groups, eight check -cashing outlets and four tattoo shops -- according to a report by the East Valley Association, the group spearheading the initiative. Without restrictions, Abed said, the result is an over- concentration of those shops in the aging retail area, where 75 percent of the city's businesses that target low-income customers are located. "We need to save East Valley Parkway tonight," Abed told the commission. He added that the Downtown Specific Plan restricts "hundreds and hundreds" of businesses without criticism. Commissioner Barry Newman called the plan "not only proper but sound land use." "This has to be done and it has to be done quickly," Newman said. Commissioner Jack Campbell, who voted against the plan, said he was worried that restricting landlords will result in empty storefronts, making it more difficult to lure larger retailers to the area. Campbell also questioned the limitations on social services. "You need to allow landlords to (lease) their buildings until the demographics catch up," Campbell said. "You can't make silk purses out of a sow's ears, my dad used to say." The City Council will hold a hearing on the plan Wednesday. It wasn't always so bad on East Valley Parkway. In 1964, the Escondido Village Mall and East Valley Parkway became a retail destination for much of inland North County. In the 1980s, modern shopping centers in south and west Escondido and other cities drew customers away, and many East Valley shops closed. In recent years, the East Valley Association has worked hard to improve the 255-acre district, which runs along the parkway from Hickory Street to Citrus Avenue. Most notably, Home Depot opened its second Escondido store in January 2002 followed by food outlets Rubio's, Panda Express, Cold Stone Creamery and Quiznos Subs in the same center. Wal-Mart has applied to build a 143,000-square-foot store adjacent to the home- improvement retailer. Craig Gustafson: (760) 737-7559; craig.gustafson@uniontrib.com 00113 Freeze on check -cash stores OK'd; [1,6 Edition] Norberto Santana Jr.. The San Diego Union - Tribune. San Diego, Calif.: Jan 8, 2004 pg. B.1 eft tr4c x-,. 8.,;,..w "We're trying to redefine National City's image," said Councilman Frank Parra. "And I think a proliferation of check -cashing business doesn't help that." That exception prompted City Councilman Frank Parra to cast the lone vote against the moratorium. Parra said that if city leaders are serious about stopping more check -cashing businesses from coming into the city, they should have included the new business. Council members have asked the city's planning commission to study the check -cashing stores to determine whether they are a good fit for the community. [Ron Morrison] and [Nick Inzunza] also have been appointed to form a city task force to study Inzunza's desire to force all check -cashing stores out of the city within five years. Doculri F,„ult Text'"5 Copyright SAN DIEGO UNION TRIBUNE PUBLISHING COMPANY Jan 8, 2004 NATIONAL CITY -- City leaders say 10 check -cashing businesses are enough. This week, council members voted 4-1 to approve a one-year moratorium on any new check - cashing or pay-day advance businesses in the city. Council members said an emergency ordinance was needed because the proliferation of the businesses is "an immediate threat to the public health, safety and welfare" of city residents. "They're providing a service which is gouging the income of the residents of our city," said Mayor Nick Inzunza. Check -cashing and pay-day advance businesses charge what can be substantial fees for their services. For example, one National City store charges $6 to cash a $340 paycheck. A loan of $300 for two weeks costs $45. Because most of the stores are on the city's two main thoroughfares -- Highland Avenue and Plaza Boulevard -- council members said the businesses could hinder redevelopment plans for the two areas. "We're trying to redefine National City's image," said Councilman Frank Parra. "And I think a proliferation of check -cashing business doesn't help that." Inzunza added, "Check cashing as an industry goes against redevelopment principles," because the stores don't offer residents a chance to save money or deposit funds. "The sole purpose of a check -cashing store is to derive fees and interest," he said. One industry representative said the council's action made little sense. "Ifs not fair at all," said Rick Lyke, a spokesman for the Financial Service Centers of America, which represents 5,000 check- cashing stores throughout the country. 0011.E "It's actually pretty ridiculous," he said. "To use that to outlaw an entire class of legal industry is unfortunate. Millions of Americans use this service." He said much of the opposition to check -cashing stores stems from misinformation. "Ignorance in a lot of ways," Lyke said. "This tendency to think that everybody needs a bank account. Not everybody needs or wants a bank account." Lyke said bans on the business "are still quite rare." In 1999, the Oceanside City Council prohibited any new check- cashing stores, beauty shops or dry cleaners in the downtown area. National City's city attorney, George Eiser, said the council is on solid legal ground in limiting land uses, especially in redevelopment areas. "The purpose of redevelopment is to eliminate blight," Eiser said. Check -cashing stores are "more characteristic of parts of the community that are blighted," he said. Although council members approved the moratorium, they did allow an exemption for one new check -cashing business, USA Checks Cashed. Those business owners had already begun renovating a building on 16th Street and Highland Avenue. That exception prompted City Councilman Frank Parra to cast the lone vote against the moratorium. Parra said that if city leaders are serious about stopping more check -cashing businesses from coming into the city, they should have included the new business. "If we're going to get rid of them, why allow a new one to start?" Parra said. Councilman Ron Morrison also objected to the exemption. Yet, after losing a series of motions over the issue, Morrison decided to endorse the ban with the exception. Council members have asked the city's planning commission to study the check -cashing stores to determine whether they are a good fit for the community. Morrison and Inzunza also have been appointed to form a city task force to study Inzunza's desire to force all check -cashing stores out of the city within five years. Norberto Santana: (619) 498-6634; norberto.santana@uniontrib.com Credit: STAFF WRITER 00118 Escondido OKs business ban along East Valley Parkway; [NC Edition] Craig Gustafson. The San Diego Union Tribune. San Diego, Calif.: Sep 29, 2004. pg. NC.7 A�gract owner). y p� r ma For Heidi Hancox, owner of Kings Pawn shop, the city's passage of a list of banned businesses on East Valley Parkway is something of a mixed blessing. East Valley Parkway used to be a retail destination for inland North County until more modern shopping centers began drawing customers away in the 1980s. The 255-acre district, which runs along the parkway from Hickory Street to Citrus Avenue, has seen some new life in recent years. Home Depot opened its second Escondido store in January 2002, followed by food outlets Rubio's, Panda Express, Cold Stone Creamery and Quiznos Subs in the same center. Wal-Mart has applied to build a store adjacent to the Home Depot. Fuli Text:(62Q /orl Copyright SAN DIEGO UNION TRIBUNE PUBLISHING COMPANY Sep 29, 2004 ESCONDIDO -- For Heidi Hancox, owner of Kings Pawn shop, the city's passage of a list of banned businesses on East Valley Parkway is something of a mixed blessing. On one hand, the measure prevents pawnshop competitors from entering the market. But Hancox said she doesn't appreciate her shop being included on any list of unwelcome businesses. "I'm not against limiting certain kinds of businesses," she said. "I'm just wondering why pawnshops were included. We were lumped in because people have a negative view of our business. The bottom line is we provide a service." Graciela Roy, who drives up from Mexico to shop at the 99 Cents Only store on East Valley Parkway, said she can't imagine why the city would restrict such businesses. "It will hurt the very poor people," she said. "I come over here just to go to the 99 Cents store. I love it." The plan, approved by the City Council on a 4-1 vote last week, is intended to limit the number of businesses on East Valley that cater to low-income customers, in the hopes of revitalizing the commercial strip -- long considered a dumping ground for unsavory enterprises. Besides pawnshops, the list of prohibited businesses includes check -cashing outlets, tattoo parlors, 99-cent and similar maximum- price stores, swap meets, thrift stores, resale shops and equipment sales and rental outlets. Social services and charitable organizations are prohibited from distributing goods or services, but could have administrative offices on East Valley Parkway. Those categories of businesses represent about 40 percent of what exists now along a two-mile stretch of the parkway, according to the East Valley Association, the group that spearheaded the plan. 00119 The ban does not affect existing businesses. Supporters contend that other areas of Escondido, including downtown and the Mercado area, have similar restrictions. They say East Valley only seeks to level the playing field. Opponents argue that the plan will handcuff landlords and cause an increase in vacancies, which could stifle revitalization efforts. "Where are these folks going to go if they can't pick a spot on East Valley Parkway?" Jim Crone, a developer who opposed the plan, asked the council. Crone also said the council is creating an unfair advantage by giving current businesses exclusive rights on East Valley. Association members said they know the plan is far from perfect, but called it a step in the right direction. "It's been a long road and we're very pleased," said Dana Wohlford, a property owner and association member. "It'll probably take five to 10 years to see significant changes. That's how long it takes to get things going." Councilman Tom D'Agosta, a lifelong Escondido resident who cast the only vote against the plan, said he blames East Valley's woes on the economy, not on a lack of planning. He said there were too many restrictions for him to support the plan. Councilwoman Marie Waldron disagreed. 'We need to encourage a healthy business mix, and this is one way to do that," she said. The plan also implements design guidelines intended to encourage creativity and quality development, as the area experiences an influx of new residents from future housing developments on the city's east end. East Valley Parkway used to be a retail destination for inland North County until more modern shopping centers began drawing customers away in the 1980s. The 255-acre district, which runs along the parkway from Hickory Street to Citrus Avenue, has seen some new life in recent years. Home Depot opened its second Escondido store in January 2002, followed by food outlets Rubio's, Panda Express, Cold Stone Creamery and Quiznos Subs in the same center. Wal-Mart has applied to build a store adjacent to the Home Depot. Credit: STAFF WRITER 00120 From: Johnson, Ronald N LCDR, DEPUTY SJA CNRSW [mailto:ronaid.n.johnson1C)navy.miu Sent: Tuesday, May 03, 2005 4:09 PM To: Rudy Hradecky Cc: Jacques, Bernard CNOCM; Clove, Ronald CAPT (SJA) Subject: NAVY REGION SOUTHWEST PAYDAY SURVEY RESULTS 5/5/2005 Mr. Radecky, Here are the Navy Region Southwest's payday survey results that you expressed an interest in today. See results below. It was nice to talk to you and we certainly appreciate the efforts of National City with respect to managing and potentially regulating payday lenders. R/LCDR Johnson Ron Johnson LCDR, JAGC, USN Deputy Staff Judge Advocate Navy Region Southwest 937 N. Harbor Drive San Diego, CA 92132-0058 E-mail: ronald.n.johnsonl@navy.mil Phone: (619) 532-1422 Fax: (619) 532-1421 DSN Prefix: 522 ---Original Message --- From: Johnson, Ronald N LCDR, DEPUTY SJA CNRSW Sent: Monday, May 02, 2005 12:33 To: Betancourt, Jose L RADM; Allen, Michael R CAPT CNRSW N01H; John Irons (E-mail); Tarbell, Nancy A. CONT (CNRSW); Bromberek, Stephen LCDR NRSW/FFCDS RSO; Jacques, Bernard CNOCM Cc: Greer, Henry A CTR CNRSW ,N60; Macdonald, Scot CD/ COMNAVREGSW N6OCR; Groveman, Jon LT COMNAVREGSW Public Affairs; Yost, Jacquie C CAPT (CNRSW PAO); Clove, Ronald CAPT (SJA); Hall, Eugene CTR; Cochran, Barry NASF; Sullivan, Lisa B LCDR NAVLEGSVCOFF SOUTHWEST SAN DIEGO CA, LEGAL ASSIST 104 Subject: CNRSW PAYDAY SURVEY FINAL RESULTS To all, The payday survey ended on Friday, 29 Apr 05. A number of queries were submitted to RITSC based on the survey questions. The payday survey results are attached. 00121 Message Page 3 of 3 We had 2,150 Navy personnel take the survey. 453 of the 2,150 personnel taking the survey, (or 21%), indicated that they have taken out a payday loan. 17% of those 21% come from the E-4 to E-6 group! Notably, almost 65% use on-line banking to pay bills! 35% of those military members responding indicated they paid Tate fees on bills in the last year. About 50% of those taking the survey indicated they had 2 months worth of pay set aside in the event of an emergency. 74% of the military members responding know the identity of their Command Financial Specialist. 86% of those who responded are aware of the Navy resources available to assist them when they have financial problems. Another interesting note: 75% of the military members responding believe that if the military found out that a member was having financial difficulties, it would have a direct impact on the member's career. Please don't hesitate to contact me if you have any questions. V/R and R/ 5/5/2005 00122 T Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 2150 Public 1616 75.16% CAC a , 53 �. 24.84% el-e3 29 4;. 1.53% e4-e6 273 8' 16.84% e7-e9 29 2.05% 01-02 3 0.23% 03-04 4 0.33% 05-06 0 0.09% 338 115 21.07% is good service - yes 358, 2 .. 20.93% is good service - no 934 338. 59.16% APR 1310 ;=427.. 80.79% change decision 1013 339 62.88% savings 795 x , 88 50.28% aware assistance 1370 484 86.23% Q10 CFS Q11 NMCRS Q12 1168 74.09% excellent above avg avg 275 174 231 71 2i below avg unsatisfactory na 51 103 782 17.53% 11.63% 13.81 % 4.00% 6.23% 46.79% paid late fees 588 170 35.26% method of paying Q13 bills Q14 Q15 allotment 817 49.26% check 1027 64.93% debit 49043 c 29.44% money order 167 40 9.63% online banking 1028,"381 65.53% found out 1237 387, 75.53% Credit Card APR 1455 .507; " 91.26% Rudy Hradecky From: Bliesner, Jim [Jim.Bliesner@sdcounty.ca.gov] Sent: Wednesday, February 23, 2005 12:24 PM To: Rudy Hradecky Subject: FW: payday lender ordinances for cities pol Iaw leg chart Walrath.wpd ... Original Message From: Jean Ann Fox [mailto:jafox@erols.com] Sent: Wednesday, February 23, 2005 12:12 PM To: Bliesner, Jim Subject: RE: payday lender ordinances for cities Some local governments have enacted zoning ordinances to restrict the proliferation of payday loan outlets. Given that California state law sets a cap for the fees, I don't know if a local government can set the cap lower. That is a question for a California lawyer. Instances of zoning enforcement to restrict payday lenders include: Chesterfield County, VA whose Board of Zoning Appeals upheld a notice of violation against a payday lender that the business should be located in a commercial area that caters to bail bondsmen and pawn shops. Milwaukee's Board of Zoning Appeals denied a special use permit application from The Payday Loan Store of Wisconsin to open two locations. The Board found that secondary effects of payday lending on the community at large negatively impacted the public welfare. A good reported case denied a conditional use permit to a title lender (really similar to payday lenders). See Missouri Title Loans, Inc. v. City of St. Louis Board of Admustment, 62 S.W.3d 408 (Ct. Apps. 2001). Superior, WI Plan Commission approved amending its zoning ordinance to include title and payday loans as special uses in 2004. A person who wants to open or relocate a payday or title loan store can't do so within 2,500 feet of a similar business and have to located in a highway commercial zone. Councilmembers objected to tacky signs. For over thirty years, California courts have held municipalities can deny land use permits to pawnshops upon "considering the effect of the proposed pawnshop on surrounding property and its inhabitants. See Iscoff v. San Francisco, 222 Ca1.App.2d 395, 408 (Cal.App.l.Dist., 1963). A payday lender zoning rule was proposed for Columbia, SC in 2004. Attached is a chart that Jim Walrath from legal services in Milwaukee put together. 1 00125 PAYDAY LENDING ZONING LAW/LEGISLATION TYPE OF ZONING LAW JURISDICTION PRINCIPAL CONTACT Conditional use permit for "small loan business." Limit business to certain commercial areas Arnold, MO Arnold City Council Mary Holden Create a separate license category for payday lending - $400 for business license v. $750 regular bank St. John, MO City Council Create a classification for payday institutions different from "financial institutions" Berkeley, MO City Council Gwen Verges First Ward Per capita limit if one store per 15,000 residents proposed ordinance St. Joseph, MO Conditional use process that allows a site- specific review by the board of supervisors Chesterfield, VA Thomas Jacobson Director of Planning Special use permit requirement (1000 ft. separation between payday lenders failed) Las Vegas, NV City Council Michael McDonald Councilman Conditional use permit for each location. Require public haring for each request. St. Louis County, MO County Council & Planning Commission City Zoning Code does not prohibit or permit check cashing services - decision on a case -by -case basis. Ft. Lauderdale, FL Pembroke Pines Board of Adjustment Saul Shechter, board member & Mayor Alex Fekete Zoning does not include check cashing. Burlington, VT Planning Department Special Use Permits Milwaukee, WI Alderman Terrance Herron Special Use Permits Glendale Heights, IL Village Planning Commission Change zone classification from a service district to special use which would require public hearing. Chicago, IL City Council Alderman Toni Preckwinkle State Bill: Vermont * Require a license from the Dept. of Banking, Insurance, Securities & Health Care Administration. * Check cashing business could charge no more than 5% of the pay check or $5, whichever is greater; government checks, 3% of their value or $2; personal checks or money orders 10% of their value or $5. * Check cashing business banned from holding checks for future deposit while providing cash (payday loans). * One-time membership fees not to exceed $10. C.\DOCUMENTS AND SETTINGS \RHRA DECK\ LOCAL SETTINGS \TEMPORARY INTERNET FILES \OLKSPDL LAW LEG CHART WALRATH. WPD 0012E Consumer Federation of America Payday Loan Research and Resource List National Studies and Reports "Internet Payday Lending: How High-priced Lenders Use the Internet to Mire Borrowers in Debt and Evade State Consumer Protections," report by Consumer Federation of America, November 2004 www.consumerfed.org/Internet Payday Lending113004.pdf "Unsafe and Unsound: Payday Lenders Hide Behind FDIC Bank Charters to Peddle Usury," report by Consumer Federation of America, March 2004 www.consumerfed.org/odlrentabankreportodf "Rent -A -Bank Payday Lending: How Banks Help Payday Lenders Evade State Consumer Protections," report by Consumer Federation of America and the U. S. Public Interest Research Group, November 2001 www.consumerfed.org/paydayreport.pdf "Show Me The Money," report by Consumer Federation of America and the U. S. Public Interest Research Group, February 2000 http://uspirg.org/uspirg.aso?id2=50438cid3=USPIRG& "Safe Harbor for Usury: Recent Developments in Payday Lending," Consumer Federation of America, September 1999 wwvv.consumerfed.org/safeharbor.pdf "The Growth of Legal Loan Sharking: A Report on the Payday Loan Industry," Consumer Federation of America, November 1998 (For a full list of CFA press releases, studies, testimony and letters on payday lending, go to www.consumerfed.org, click on Financial Issues and select "Payday Loans.") "Predatory Lending and the Military: The Law and Geography of `Payday' Loans in Military Towns," Steven Graves and Christopher Peterson, University of Florida Law School, March 29, 2005 www.law.ufl.edu/faculty/peterson// ublications.shtml 00127 "The Consumer Lending Revolution: Economic Consequences. The Regulatory and Legislative Framework" Kathleen Keest, Center for Responsible Lending, December 8, 2004 www.responsiblelending.org/pdfs/Legislative Framework 1204.pdf "Be Wary: Dependence on Debt Trap Presents Challenges for Effective State Payday Lending Regulation" Yolanda McGill, Center for Responsible Lending, July 2, 2004 www.responsiblelending.org/pdfs/pb009-Be Wary Payday-0704.pdf "Quantifying the Economic Cost of Predatory Payday Lending" Keith Ernst, John Farris, and Uriah King, Center for Responsible Lending, Dec. 18, 2003 http://predatorylending.org/pdfs/CRLpaydaylendingstudy 121803.pdf "In Harm's Way — At Home: Consumer Scams and the Direct Targeting of America's Military and Veterans" National Consumer Law Center, May 2003 (Copy and paste address in browser.) ht-qa://www.consumerlaw.org/initiatives/military/content/report military .pdf NCLC/CFA Model State Payday Loan Law www.ncic.org/initiatives/payday loans/paydavac.shtml NCLC Payday Loans: A Form of Loansharking: The Problem, Legislative Strategies, A Model Act www.ncic.org/initiatives/payday loans/pay menu.shtml "The Alternative Financial Services Industry" Sharon Hermanson and George Gaberlavage, AARP Public Policy Institute, 2001 http://research.aarp.orq/consume/ib51 finance.pdf "Landscapes of Predation, Landscapes of Neglect: A Location Analysis of Payday Lenders and Banks" Steven M. Graves, The Professional Geographer v. 55 no3 (Aug. 2003) p. 303-17 "Payday Loans: Shrewd Business or Predatory Lending?" Creola Johnson, Minnesota Law Review, Vol. 87, No. 1, November, 2002 "The Economics of Payday Lending" John P. Caskey, Filene Research Institute, 2002. "Lower Income Americans, Higher Cost Financial Services" John P. Caskey, Filene Research Institute, 1997 "Compendium of articles: Combating the Loan Shark" 8 Law and Contemporary Problems 1 (Winter 1941). 00128 State and Local Reports and Studies Arizona "Payday Lending in Pima County Arizona" Southwest Center for Economic Integrity, December 2003 www.economicintegrity.org/SCEI Report%20 On %20PayDay Lending%2ORELEAS ED 1.pdf Arkansas "Payday Lenders in Arkansas: The Regulated and the Unregulated" A study by Arkansas Against Abusive Payday Lending, August 2004 www.afcu.org/pdf/Check Casher-Paydav Lending Study - August 2004.pdf Colorado State of Colorado, Department of Law 2003 Deferred Deposit Lenders Annual Report. www.ago.state.co.us/uccc/annrep/ddlannrrpt2004.pdf Florida "Florida Trends in Deferred Presentment Report" State of Florida Department of Banking and Finance, December, 2004 www.veritecs.com/FL Trends Dec 2004.pdf Illinois "Unregulated Payday Lending Pulls Vulnerable Consumers Into Spiraling Debt," Woodstock Institute Reinvestment Alert, March 2000, Number 14 http://woodstoekinst.org/document/alert.pdf "Affordable Alternatives to Payday Loans" Woodstock Institute Reinvestment Alert, March 2001, Number 16 http://woodstockinst.org/document/alert16.pdf "Payday Lenders Gouging African -American Communities" Woodstock Institute Press Release, March 11, 2003 http://woodstockinst.org/document/paydaypress03 .pdf "New Terms for Payday Loans — High Cost Lenders Change Loan Terms to Evade Illinois Consumer Protections" Woodstock Institute Reinvestment Alert, April 2004, Number 26 http://woodstockinst.org/document/alert 26.pdf 3 00129 "Greed: An In -Depth Study of the Debt Collection Practices, Interest Rates, and Customer Base of a Major Illinois Payday Lender" Monsignor John Egan Campaign for Payday Loan Reform, March 2004 www.citizenaction-il.org/files/GREED%2Oreport%203.10.04.pdf "Short Term Lending: Final Report" State of Illinois Department of Financial Institutions Study, 1999. "The Role of Alternative Financial Service Providers in Serving LMI Neighborhoods" Sherrie L.W. Rhine, Maude Toussaint -Comeau, Jeanne M. Hogarth, & William H. Greene, Federal Reserve Board, March 2001 Indiana Indiana Department of Financial Institutions, Summary of Payday Lender Examinations Conducted from 7/99 thru 10/99. Iowa Survey of Banking: Payday Loan Survey Iowa Division of Division of Banking, December 2003. Missouri Report to General Assembly Payday Lenders Missouri Division of Finance, January 8, 2003 www.missouri-finance.org/pdfs/survey.pdf New Mexico "Payday, Mayday! Payday and Title Lender Compliance to Signage and Brochure Regulations" Series on Predatory Lending Report One Ray Prushnok, NM PIRG Education Fund 2002 http : //nmpirg/reports/p aydaymayday.p df "Payday, Heyday! Measuring Growth in New Mexico's Small Loan Industry" Series on Predatory Lending Report Two Ray Prushnok, NM PIRG Education Fund 2002 www.nmpirg.org/reports/paydayheyday.pdf North Carolina "Race Matters: The Concentration of Payday Lenders in African -American Neighborhoods in North Carolina" Delvin Davis, Keith Ernst, Uriah King, Wei Li, Center for Responsible Lending 2005 www.responsiblelending.org/reports/NCDisplmpact.cfm 4 �ri130 "Season in Review" Community Reinvestment Association of North Carolina, 2004 www. cra-nc.org/SeasonReviewnews.pdf "Melee Breaks Out at FDIC" Community Reinvestment Association of North Carolina, 2004 www.cra-nc.org/Gamehighlights.pdf "Too Much Month at the End of the Paycheck, Payday Lending in North Carolina" Community Reinvestment Association of North Carolina and the Center for Community Capitalism, University of North Carolina at Chapel Hill, January 2001 www.cra-nc.org/paycheck.pdf "Small Loans, BIG BUCK$: An Analysis of the Payday Lending Industry in North Carolina" Peter Skillern, Community Reinvestment Association of North Carolina, 2002 www.cra-nc.org/small%2Oloans%20big%20bucks .pdf "Payday Lending: A Business Model that Encourages Chronic Borrowing: Michael A. Stegman and Robert Faris, The Economic Development Quarterly, vol. 17, no. 1, February 2003 www.kenan-flagler.unc.edu/assets/documents/CC Payday-lending.pdf "Welfare, Work, and Banking: The North Carolina Financial Services Survey" Michael A. Stedman & Robert Faris, Oct. 2001 www.kenan-flagler.unc.edu/assets/documents/CC welfare.pdf North Carolina Report to the General Assembly on Payday Lending Office of the Commissioner of Banks, North Carolina, February 2001 www. banki ng. state. nc. us Oklahoma "Oklahoma Deferred Deposit Program: Program Effectiveness Report" Oklahoma Office of Consumer Credit Commissioner, November 2004 www.okdocc.state.ok.us/OKVeriteeDBNov2004.pdf Pennsylvania "License to Steal? How Philadelphia's Largest Check-Casher Chain Is Using Its State -Issued License to Siphon Millions of Dollars from Low -Income Households" Pennsylvania ACORN and Community Legal Services, Philadelphia, 2000 5 00131 Tennessee "Report to the 101st General Assembly on the Deferred Presentment Services Act" State of Tennessee Department of Financial Institutions, 1999 Texas "Wolf in Sheep's Clothing: Payday Loans Disguise Illegal Lending" Consumers Union Southwest Regional Office, February 1999 www.consumersunion.org/finance/txloans-l.htm "Sale -Leaseback Lenders Defy Regulation" Consumers Union, February 2001 www.consumersunion.org/finance/leaseback/payday.htm "Payday Lenders Burden Working Families and the U. S. Armed Forces" Consumers Union, July 2003 vvww.consumersunion.org/pdf/payday-703.pdf Virginia Payday Lender Licensees/Check Cashers 2004 Annual Report Bureau of Financial Institutions, State Corporation Commission 2005 www.scc.virginia.goy/division/banking/forms/ar04-04.pdf Washington Payday Lending Report: Statistics & Trends for 2003 Washington State Department of Financial Institutions, January 2005 http://www.dfi.wa.gov/news/DFI PaydayReport.pdf Wisconsin Review of Payday Lending in Wisconsin 2001 Wisconsin Department of Financial Institutions, June 2001. www.wdfi.org/ resources/indexed/site/newsroorn/press/payday loan may 2001.pdf Australia "Payday Lending in Victoria — A Research Report" Dean Wilson, Consumer Law Centre Victoria, Melbourne, AU, July 2002 www.cicv.net.au/Publications/payday.pdf 6 00132 Canada "Protecting Canadians' Interest: Reining in the Payday Lending Industry" ACORN Canada, November 2004 www.acorn.org "Fringe Lending and `Alternative' Banking: The Consumer Experience" Public Interest Advocacy Centre, Ontario, October 2002 www.piac.ca/fringelending.htm "Pragmatic Solutions to Payday Lending: Regulating Fringe Lending and `Alternative' Banking" Public Interest Advocacy Centre, Ontario, December 2003 www.piac.ca/fringelendingrpt2.pdf "The Rise of Fringe Financial Services in Winnipeg's North End: Client Experiences, Firm Legitimacy and Community Based Alternatives" Jerry Buckland, University of Winnipeg, August 2003 www. Winnipeg. ca/web/faculty/iushusweb/pdf/fringe.banking. Chesya.pdf "Access to Credit in the Alternative Consumer Credit Market" Iain Ramsay, for Industry Canada and Ministry of the Attorney General, British Columbia, February 2000 http://cmcweb.ic.gc. ca/epic/internet/incmc- cmc.nsf/vwapj/ramsay e.pdf/$FILE/ramsay e.pdf Brochures and Pamphlets "The Debt Trap of Payday Lending: Protect Economic Security for Women and Families" Yolanda McGill, Center for Responsible Lending, September 16, 2004 www.responsiblelending.org/pdfs/ib019-Women Payday-0904.pdf "A Consumer Guide to Payday Lending" Community Action Project, Tulsa www.captc.org/pubpol/Payday Lending/CAP Guide.pdf "Payday Loans Don't Pay," AARP consumer fact sheet, March 2000 www. aarp. org/confacts/money/paydayloans.htm 1 "Payday Loans = Costly Cash" Federal Trade Commission Consumer Alert wwvv.ftc.gov/bcp/conline/pubs/alerts/pdayalrt.pdf 7 0033 "Consumer Guide to Payday Lending" Virginia Bureau of Financial Institutions www.state.va.us/scc/division/banking/news/payday brochure.pdf CUNA Payday Loan Alternatives Handbook CUNA www.cuna.org/download/alternatives handbook 3rd printing.pdf "Alternatives to Payday Lending" Center for Responsible Lending, NC www.responsiblelending.org/payday/alternatives.cfm Consumer Federation of America Update June 1, 2005 8 00134 ORDINANCE NO. 2005 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADDING CHAPTER 10.58 TO THE NATIONAL CITY MUNICIPAL CODE TO REGULATE BUSINESS LICENSES FOR "DEFERRED DEPOSIT TRANSACTION BUSINESSES", ALSO KNOW AS "PAYDAY LENDERS", AND REPEALING ORDINANCE NO. 2004-2254 BE IT ORDAINED by the City Council of the City of National City as follows: Section 1. That Title 10 of the National City Municipal Code is hereby amended by adding Chapter 10.58 to read as follows: Chapter 10.58 ADVANCE PAYDAY LOAN BUSINESSES AND TRANSACTIONS Sections: 10.58.010 Findings and purpose 10.58.020 Definitions 10.58.030 Applicability 10.58.040 Operating and licensing restrictions 10.58.050 Regulations governing the prominent posting of signs 10.58.060 Standards of operation 10.58.070 Payday lender's duty to inquire about military status and existing payday loan status 10.58.080 Particular regulatory provisions applicable to members of the Armed Forces on active duty and their spouses or domestic partners 10.58.090 Transaction provisions 10.58.100 Enforcement and regulatory provisions 10.58.110 Severability 10.58.010 Findings and purpose. A. Under the provisions of state law, loan businesses meeting the definition of deferred deposit transaction businesses (also commonly known as "payday lenders" or "advanced payday lenders") are required to be licensed under Financial Code Section 23000, et seq. Registered businesses are thereby exempted from state usury laws and allowed to charge fees for loans advanced against the later receipt of a payroll check by the borrower. The fees that may be charged for these short term loans can constitute an annual percentage rate (APR) ranging from 797% APR for a 7 day transaction to 180% APR for a 30 day transaction. B. State law limits the maximum term of each transaction to a 31 day period, and prohibits two or more transactions to be entered into concurrently by an individual borrower at any particular payday lender. State law does not limit or regulate the 2005 Ordinance 1 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders number of transactions that may concurrently be made by members of the same household, the minimum period of time before which a lender may require a borrower to repay the loan, or require a lender to ascertain the military status or current payday loan status of a borrower. C. Deferred deposit transaction businesses shall hereafter be referred to in this chapter as "payday loan" businesses, and the practice as the "payday lending" practice or business. D. The City Council finds and determines that payday lending has a predatory aspect and an adverse effect particularly upon military personnel, the elderly, the economically disadvantaged and other citizens of the City who become ensnared in payday lending practices. The Council further determines that payday loan businesses can also have an economic blighting effect in communities, thereby adversely impacting the economic growth and vitality of the community, its businesses, the provision of services and consumer needs to the community and resulting tax revenues to the city. E. The City Council finds and declares that it is necessary to further regulate the payday loan business beyond that presently addressed by state law in order to protect the public against the abuses of predatory lending practices. The Council further finds that although payday lending involves relatively small loans and does not encompass loans that involve interstate commerce, certain payday lenders have attempted to use forum selection clauses contained in payday loan documents in order to avoid the courts of the State of California, and that such practices are unconscionable and adversely affect local residents, and are a potentially deceptive business practice. F. The City Council therefore determines that the permissive parameters of state law are not preemptive of local regulation for consumer protection, and it therefore enacts this chapter pursuant to the city's constitutional police power to protect the public against such abuses. 10.58.020 Definitions. As used in this chapter, the following terms have the following meanings: A. "Deferred deposit transaction" means a transaction whereby a person defers depositing a customer's personal check until a specific date, pursuant to a written agreement, as provided in Financial Code Section 23035. B. "Licensee", as defined in Financial Code Section 23001 means any person who offers, originates, or makes a deferred deposit transaction, who arranges a deferred deposit transaction for a deferred deposit originator, who acts as an agent for a deferred deposit originator, or who assists a deferred deposit originator in the origination of a deferred deposit transaction. However, "licensee" does not include a state or federally chartered bank, thrift, savings association, industrial loan company, or credit union. "Licensee" also does not include a retail seller engaged primarily in the business of selling consumer goods, including consumables, to retail buyers and that cash checks for a minimum fee not exceeding two dollars ($2.00) as a service to its customers that is incidental to its main purpose or business. "Licensee" also does not include an employee regularly employed by a licensee at the licensee's place of business. An employee, when acting under the scope of the employee's employment, shall be exempt from any law from which the employee's employer is exempt. 2005 Ordinance 2 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders C. "Person" means an individual, a corporation, a partnership, a limited liability company, a joint venture, an association, a joint stock company, a trust, an unincorporated organization, a government entity, or a political subdivision of a government entity. D. "Operator", when used in this chapter, shall have the same meaning as the term "licensee" defined above. E. "Deferred deposit originator" means a person who offers, originates, or makes a deferred deposit transaction. It does not include an "applicant" or "customer". F. "Payday lender" means any person who meets the definition of "licensee" or "deferred deposit originator" above. G. "Applicant" or "customer" shall refer to a person who applies for or takes out a "payday loan". H. "Domestic Partner" is defined in California Family Code Section 297. 10.58.030 Applicability. A. Except as provided in subsection C, this chapter applies to any business or any business transaction in the city that would subject a business to registration with the California Department of Corporations as a "deferred deposit transaction business" under Financial Code Section 23005, irrespective of whether or not the business is so registered. B. Deferred deposit transaction businesses shall be referred to in this chapter as "payday loan" or "payday lender" businesses, and the practice or transaction of making a payday loan as "payday lending". C. This chapter shall not apply to: (1) any transaction, fee or penalty for a dishonored check previously presented for payment; (2) any business that accepts or cashes personal or payroll checks in payment for consumer goods or services customarily provided by the business, either at face value without discount or for a nominal check cashing fee that does not exceed two dollars ($2.00) per check; (3) any business transaction in which checks or money orders are sold to a customer for a fee; or, (4) any business that is statutorily exempted by state or federal law from local regulation. D. Except when a section or subsection in this chapter is made specifically applicable to an operator, the requirements of the section or subsection shall be applicable to each operator, owner or employee of a payday loan business or payday lender. The principal of the business shall be administratively and civilly liable for the errors and omissions of its agents and employees. 10.58.040 Operating and licensing restrictions. A. Each payday lending business operating within the city shall be licensed, operated and conducted as a separate business unit and entity pursuant to and under Chapter 6.04. No payday lending business may be operated or conducted as a unit of another business unless it is licensed and regulated as provided in this chapter. B. This section shall not bar a payday lending business from leasing out commercial space within a commercially zoned building, or from leasing part of the premises of another business in order to conduct its own payday lending on that premises, provided however that all other applicable restrictions of this Chapter 10.58 governing the physical appearance and operation of the premises are satisfied, including those in Section 10.58.050. 2005 Ordinance 3 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders C. On and after the effective date of this Chapter, no more than ten (10) payday lending businesses may operate within the city, and the number of business licenses issued to payday lending businesses shall be limited to ten (10). Except within any redevelopment project area, existing business licenses may be renewed or transferred or reissued upon a change of ownership or location. Within any redevelopment project area, existing business licenses may be renewed, but shall not be reissued or transferred due to a change in ownership, location, or upon cessation of business. D. This section is regulatory. 10.58.050 Regulations governing the prominent posting of signs. It is unlawful to fail to post a sign required by this chapter, or to post a required sign that does not comply with the requirements of this chapter. A. Signs required by this chapter or the Financial Code to be posted shall be approved by the city enforcement official as to compliance with this chapter prior to installation. Posted signs shall be subject to inspection for continued compliance with this chapter by city enforcement officials during business hours. B. Required signs shall be prominently displayed on the interior of the premises and be completely visible and readable to customers at all times. Lettering on required signs shall be clear, legible and in letters of not less than one-half inch in height. C. Violation of this section by an operator or employee is a misdemeanor. 10.58.060 Standards of operation. Payday lenders conducting payday lending businesses within the city shall observe the following operating regulations at all times as a condition of doing business and maintaining a business license within this jurisdiction: A. The toll free number of the Department of Corporations hot-line shall be prominently posted on the premises; B. Signage required by Financial Code Section 23035(d) shall be prominently posted on the premises. The schedule of fees required to be posted shall also include an Annual Percentage Rate (APR) based on the fee charged per $100 dollars. For example, a $15.00 fee per $100.00 advanced represents a true interest rate of 797% APR for a 7 day transaction, 398 % APR for a 14 day transaction, and 180% APR for a 30 day transaction. C. Transaction agreements in this jurisdiction that provide for a forum other than the County of San Diego, State of California for the adjudication of collection matters shall be considered an unconscionable provision for regulatory licensing purposes. D. The city manager or designee shall be provided with a copy of all specimen transaction forms that customers are required to complete, or that operators are required to furnish to customer. E. Each operator shall furnish the city manager or finance director as designate a copy of the report that is required to be filed annually with the Commissioner of Corporations pursuant to Financial Code Section 23026. The report furnished to the city manager or designee shall be subject to and be retained in accordance with the confidentiality requirements of state law, but shall be available for use in connection with enforcement proceedings. 2005 Ordinance 4 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders F. An operator is prohibited from entering into a concurrent loan transaction with the spouse or domestic partner of any person who is an existing loan customer of any other payday lending business within the county of San Diego. The operator or each employee or agent shall make diligent inquiry of each applicant for a payday loan pursuant to Section 10.58.070 to ascertain the status of an existing loan by that household member. G. An operator is prohibited from rolling over an existing payday loan transaction into a new payday loan and charging new fees in order to discharge the obligation of an existing payday loan. No operator shall enter into a new payday loan transaction with the same applicant or customer for a period of thirty days following termination of an existing transaction. An operator may however extend the times for repayment of an existing loan transaction beyond the initial 31 day period, provided no additional fees are charged and no new or additional requirements are imposed upon that customer or penalties. H. An operator or employee is prohibited from transacting a payday loan with an intoxicated person or any other person who lacks the capacity to contract. I. In addition to the penalties prescribed by state law, violation of the provisions of Financial Code Section 23036 and other provisions of law governing "licensees" shall also be grounds for the denial, revocation or suspension of any city business license applicable to the particular payday lender. J. This section is regulatory only. 10.58.070 Payday lender's duty to inquire about military status and existing payday loan status. A. Before executing a payday loan transaction, a payday lender shall inquire of each applicant for each payday loan by that applicant whether he or she: 1) is a member of the armed forces on active duty or a spouse or domestic partner of the same; and 2) is the spouse or domestic partner of a person who has an existing payday loan transaction in current effect with any payday loan business in San Diego County. It is unlawful for any operator or employee of a payday loan business to fail to make the inquiry required by this subsection of each applicant for a payday loan each time an applicant makes such application. B. if the customer answers in the affirmative that he or she is a member of the armed forces on active duty or a spouse or domestic partner of the same, the lender shall advise the borrower of the provisions of Section 10.58.090, and shall provide a written form to the borrower that acknowledges the terms of that section. The payday lender shall keep a copy on file for inspection by the city for twelve (12) months after the transaction is completed. This subsection is regulatory only. C. If the customer answers in the affirmative that he or she is the spouse or domestic partner of a person who has an existing payday loan transaction in current effect with any payday loan business in San Diego County, the lender is prohibited from executing a payday loan transaction with that customer until the existing payday loan transaction is terminated by payment in full. This subsection is regulatory only. D. Payday lenders shall post a sign prominently on the premises that advises customers of this requirement. E. Violation of subsection A or D by an operator or employee is a misdemeanor. 2005 Ordinance 5 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders 10.58.080 Particular regulatory provisions applicable to members of the Armed Forces on active duty and their spouses or domestic partners. A. When a customer or applicant answers affirmatively that he or she is a member or a spouse or domestic partner of a member of the military services of the United States, the duties and obligations listed in this section shall apply to any payday lender who enters into a transaction with that person. 1. The lender is prohibited from garnishment of any military wages or 2. The lender shall not conduct any collection activity against a military customer or his or her spouse or domestic partner when the military member has been deployed to a combat or hostile fire zone for the duration of the deployment; 3. The lender shall not contact the commanding officer of a military customer in an effort to collect on a loan to the military member or his or her spouse or domestic partner; 4. The lender shall be bound by the terms of any repayment agreement that it negotiates through military counselors or third -party credit counselors; and 5. The lender agrees to honor any statement or proclamation by a military base commander that a specific payday lender branch location has been declared off limits to military personnel and their spouses or domestic partners. B. If the customer is a member, spouse or domestic partner of a member of the military services of the United States, the following disclosures shall be made in writing by the payday lender, be signed by the customer and a signed copy be furnished to the customer: 1. That the lender is prohibited from garnishment of any military wages or salaries; 2. That the lender is prohibited from conducting any collection activity against a military customer or his or her spouse or domestic partner when the military member has been deployed to a combat or combat support posting for the duration of the deployment; 3. That the lender is prohibited from contacting the commanding officer of a military customer in an effort to collect on a loan to the military member or his or her spouse or domestic partner; 4. That the lender agrees to be bound by the terms of any repayment agreement that it negotiates through military counselors or third -party credit counselors; and 5. That the lender agrees to honor any statement or proclamation by a military base commander that a specific payday lending branch location has been declared off limits to military personnel and their spouses or domestic partners. C. This section is regulatory. salaries; 10.58.090 Transition provisions. The provisions of this chapter shall apply to all payday lenders that are currently licensed or are required to be licensed in accordance with this chapter and Chapter 6.04 thirty days after the effective date of this chapter. 2005 Ordinance 6 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders 10.58.100 Enforcement and regulatory provisions. A. Except as provided in subsection B, it is unlawful to violate any of the mandatory provisions or the prohibitions of this chapter. Each violation shall be prosecuted as a misdemeanor, with a penalty of $1,000 fine or imprisonment not to exceed six months, or both. Each day that a violation continues to exist shall constitute a separate misdemeanor. Violations under the provisions of this subsection may also result in administrative or civil action, or both. B. Violation of any section or subsection that is designated as regulatory shall only be grounds for administrative or civil action, or both, and shall constitute grounds for the suspension or revocation of a business license pursuant to and in accordance with Section 6.04.170 of this code. Each principal and operator of a payday lending business shall be administratively and civilly liable and responsible for the acts or omissions by an agent or employee of that business. Administrative review procedures shall be as set forth in Section 6.04.160. C. The maintenance of a payday lending business in violation of this chapter shall constitute a public nuisance, the penalty for which may include the abatement of the premises, in addition to any civil, criminal and administrative penalties or remedies that may be imposed. D. Supervision, inspection and enforcement of the provisions of this chapter shall be under the jurisdiction of the city manager, and the finance director by delegation. E. The city attorney shall be responsible for initiating and maintaining criminal, civil and administrative actions, and any combination, pertaining to prosecution and abatement of violations under this chapter. 10.58.110 Severability. If any provision of this chapter or its application is found by a court of .competent jurisdiction in the United States to be invalid or superseded by state or federal law, then the remaining provisions of this chapter shall not be affected, and shall remain in full force and effect until amended or repealed by Council action. Section 2. That upon the effective date of this ordinance, Ordinance No. 2004-2254 is repealed. PASSED and ADOPTED this day of 2005. ATTEST: Nick Inzunza, Mayor APPROVED AS TO FORM: Michael R. Della George H. Eiser, III City Clerk City Attorney 2005 Ordinance 7 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders MEETING DATE: July 19, 2005 City of National City COUNCIL AGENDA STATEMENT AGENDA ITEM NO. 22 ITEM TITLE: ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REZONING CERTAIN PARCELS OF REAL PROPERTY PURSUANT TO THE LAND USE CODE FROM RS-3-PD TO RM-1-PD FOR THE PROPERTIES LOCATED AT 1125, 1251 AND 1311 EAST DIVISION STREET (APPLICANT: NATIONAL HOUSING FUND, INC.) CASE FILE NOS. GP-2004-1/ZC-2004-3 PREPARED BY: Benjamin Martinez DEPARTMENT Community Development Commission Executive Director EXPLANATION: On June 7, 2005, after conducting a duly advertised public hearing the City Council adopted a Resolu- tion approving the proposed Amendment to the Combined General Plan!Zoning Map for the pro- posed Pacific View Estates Project. Accordingly, the adoption of the attached Ordinance necessary to formalize the City Council's action. Environmental Review NIA A Mitigated Negative Declaration has been prepared pursuant to the requirements of the California Environmental Quality Act to evaluate the potential environmental impacts that could occur with the ap- proval and development of the proposed Pacific View Estates Project. Financial Statement There will be no fiscal impact to the City's General Fund as a result of this action. 1 r STAFF RECOMMENDATION Introduce Ordinance No. 2005- BOARD/COMMISSION RECOMMENDATION Not Applicable. ATTACHMENTS (Listed Below) Resolution No. 1. Ordinance No. 2005- ORDINANCE NO. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REZONING CERTAIN PARCELS OF REAL PROPERTY PURSUANT TO THE LAND USE CODE FROM RS-3-PD TO RM-1-PD FOR THE PROPERTIES LOCATED AT 1125, 1251 AND 1311 EAST DIVISION STREET APPLICANT: NATIONAL HOUSING FUND, INC. CASE FILE NOS. GP-2004-1/ZC-2004-3 WHEREAS, pursuant to the terms and provisions of the Government Code of the State of California, proceedings were duly initiated for the rezoning of the parcels of real property, hereinafter described, and for the amendment of the General Plan of the City of National City; and, WHEREAS, pursuant to legal notice, hearings were held by the Planning Commission of the City of National City and also by the City Council of the City of National City, and all persons interested were given the opportunity to appear and be heard before said Planning Commission and City Council; and, WHEREAS, the Planning Commission has regularly and duly certified to the City Council its report and has recommended such rezoning and such amendment; and, WHEREAS, the City Council found that on the basis of the Initial Study and any comments received that there is no substantial evidence that the project will have a significant effect on the environment and adopted a proposed Mitigated Negative Declaration which addresses both said General Plan Amendment and rezoning; and, WHEREAS, the City Council finds that the rezoning is consistent with and necessary to implement the General Plan. NOW, THEREFORE, the City Council of the City of National City, California does ordain as follows: Section 1. All protests, if any, against said rezoning and said amendment to the General Plan, and each of them be and hereby are denied and overruled. Section 2. That all the real property described by case file exhibit (GP-2004-1/ZC-2004-3) on file in the office of the City Clerk is hereby rezoned from RS-3-PD to RM-1-PD. Section 3. That a Notice of Determination shall be filed indicating that the rezoning will not have a significant effect on the environment. // // // // PASSED and ADOPTED this 19th day of July 2005. NICK INZUNZA, MAYOR ATTEST: MICHAEL DALLA, CITY CLERK APPROVED AS TO FORM: GEORGE H. EISER, I I -CITY ATTORNEY MEETING DATE: July 19, 2005 City of National City COUNCIL AGENDA STATEMENT AGENDA ITEM NO. 23 ITEM TITLE: ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REZONING CERTAIN PARCELS OF REAL PROPERTY PURSUANT TO THE LAND USE CODE FROM MM-CZ TO CT-PD-CZ FOR THE PROPERTIES ASSOCIATED WITH THE MARINA GATEWAY PLACE PROJECT (APPLICANT: COMMUNITY DEVELOPMENT COMMISSION) CASE FILE NOS. GP-2004-5/ZC-2004-2 PREPARED BY: Benjamin Martine Executive Director EXPLANATION: DEPARTMENT Community Development Commission On June 7, 2005, after conducting a duly advertised public hearing the City Council adopted a Resolution approving the proposed Amendment to the Combined General Plan/Zoning Map for the proposed Pacific View Estates Project. Accordingly, the adoption of the attached Ordinance necessary to formalize the City Council's action. Environmental Review N/A A Notice of Exemption has been prepared pursuant to the requirements of the California Environmental Quality Act for the proposed Marina Gateway Place Project. Financial Statement There will be no fiscal impact to the City's General Fund as a result of this action. J 1 STAFF RECOMMENDATION Introduce Ordinance No. 2005- BOARD/COMMISSION RECOMMENDATION Not Applicable. ATTACHMENTS (Listed Below) 1. Ordinance No. 2005- Resolution No. ORDINANCE NO. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REZONING CERTAIN PARCELS OF REAL PROPERTY PURSUANT TO THE LAND USE CODE FROM MM-CZ TO CT-PD-CZ FOR THE PROPERTIES ASSOCIATED WITH THE MARINA GATEWAY PLACE PROJECT APPLICANT: COMMUNITY DEVELOPMENT COMMISSION CASE FILE NOS. GP-2004-5/ZC-2004-2 WHEREAS, pursuant to the terms and provisions of the Government Code of the State of California, proceedings were duly initiated for the rezoning of the parcels of real property, hereinafter described, and for the amendment of the General Plan of the City of National City; and, WHEREAS, pursuant to legal notice, hearings were held by the Planning Commission of the City of National City and also by the City Council of the City of National City, and all persons interested were given the opportunity to appear and be heard before said Planning Commission and City Council; and, WHEREAS, the Planning Commission has regularly and duly certified to the City Council its report and has recommended such rezoning and such amendment; and, WHEREAS, the City Council found that on the basis of the Preliminary Environmental Assessment and any comments received that there is no substantial evidence that the project will have a significant effect on the environment and adopted a Notice of Exemption which addresses both said General Plan Amendment and rezoning; and, WHEREAS, the City Council finds that the rezoning is consistent with and necessary to implement the General Plan. NOW, THEREFORE, the City Council of the City of National City, California does ordain as follows: Section 1. All protests, if any, against said rezoning and said amendment to the General Plan, and each of them be and hereby are denied and overruled. Section 2. That all the real property described by case the exhibit (GP-2004-5/ZC- 2004-2) on file in the office of the City Clerk is hereby rezoned from MM-CZ to CT-PD-CZ. Section 3. That a Notice of Exemption shall be filed indicating that the rezoning will not have a significant effect on the environment. // // // // PASSED AND ADOPTED this 19th day of July 2005. Nick Inzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III -City Attorney City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE •July 19 r 2005 SECOND READING AGENDA ITEM NO. /*ITEM TITLE An Ordinance of the City of National City Rezoning a Certain Parcel of Real Property Pursuant to the Land Use Code from RS-3-PD to CL for the Southern Half of the Property at 3102 E. 16th Street. (Applicant: City o ational City) (Case File No. GP-2005-2/ZC-2005-1) PREPARED BY Andrew oskinson 336-43 1DEPARTMENT Planning EXT. EXPLANATION 24 The City Council voted to approve this item at the June 7, 2005 public hearing. The attached Ordinance is needed to follow through on the action. ( Environmental Review N/A Exempt MIS Approval Financial Statement N/A Approved By: Finance Director Account No. STAFF RECOMMENDATION Introduce the attached Ordinance. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. Ordinance A-200 (Rev. 7/03) ORDINANCE NO. 2005 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REZONING A CERTAIN PARCEL OF REAL PROPERTY PURSUANT TO THE LAND USE CODE FROM RS-3-PD TO CL FOR THE SOUTHERN HALF OF THE PROPERTY AT 3102 EAST 16TH STREET APPLICANT: CITY OF NATIONAL CITY CASE FILE NOS. GP-2005-22C-2005-1 WHEREAS, pursuant to the terms and provisions of the Government Code, proceedings were duly initiated for the rezoning of the parcels of real property, hereinafter described, and for the amendment of the General Plan of the City of National City; and WHEREAS, pursuant to legal notice, hearings were held by the Planning Commission and the City Council, and all persons interested were given the opportunity to appear and be heard before said Planning Commission and City Council; and WHEREAS, the Planning Commission has regularly and duly certified to the City Council its report and has recommended such rezoning and such amendment; and WHEREAS, the City Council finds the rezoning consistent with and necessary to implement the General Plan, since the General Plan encourages high quality new development that is compatible with existing development, and since the Plan also encourages the protection of single-family neighborhoods. NOW, THEREFORE, the City Council of the City of National City, Califomia does ordain as follows: Section 1. All protests, if any, against said rezoning and said amendment to the General Plan, and each of them be and hereby are denied and overruled. Section 2. That all the real property described below is hereby rezoned as follows: From RS-3-PD (Single Family Extendable -Planned Development) to CL (Limited Commercial) for the southem half (approximately 9,000 square feet) of the property at 3102 East 16th Street as described by case file exhibit (GP-2005-2/ZC-2005-1) on file in the office of the City Clerk as Exhibit A. PASSED and ADOPTED this day of 2005. Nick Inzunza, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Della George H. Eiser, III City Clerk City Attorney LOCATION MAP Amendment to the Combined General Plan / Zoning Map from RS-3-PD to CL for the southem half of 3102 16th St. GP-2005-2/ ZC-2005-1 NATIONAL CITY PLANNING DRN. DAM 1/21/05 INITIAL. HEARING: 4/18/05 MEETING DATE July 19, 2005 City of National City, California COUNCIL AGENDA STATEMENT AGENDA ITEM NO. 25 ITEM TITLE AN ORDINANCE OF THE CITY OF NATIONAL CITY IMPOSING A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION PREPARED BY George H. Eiser, IIIDEPARTMENT City Attorney (Ext. 4221) EXPLANATION Please see attached memorandum. Environmental Review X N/A Financial Statement Sufficient funds are available to place the measure on the ballot. Account No. o. STAFF RECOMMENDATION Adopt ordinance ,BOARD 1 OONLIIiSSICN CO!NIM1:ND AT1ON N/A ATTACHMENTS (Liisted Below Proposed ordinance Resolution No. A-200 (9/80) City of National City Office of the City Attorney 1243 National City Boulevard., National City, CA 91950-4301 George H. Eiser, I11 • City Attorney (619) 336-4220 Fax: (619) 336-4327 TDD: (619) 336-1615 TO: Mayor and City Council DATE: July 6, 2005 FROM: City Attorney SUBJECT: Transactions and Use Tax; Placement on November 8, 2005 Ballot California Revenue and Taxation Code Section 7285.9 authorizes the City Council to levy a transactions and use tax (a sales tax) at a rate of 0.25 percent or a multiple thereof, provided the tax is approved by a two-thirds vote of the City Council and by a majority vote of the qualified voters of the city voting in an election on the issue. At the June 21, 2005 City Council Meeting, the Council directed the staff to include on the July 19 agenda a resolution placing a measure on the November 8 ballot for voter approval of a one -cent (one percent) transactions and use tax. In order to proceed, pursuant to Section 7285.9 and other applicable state law, the City Council would first enact an ordinance amending the Municipal Code by adding Chapter 4.60, entitled "Transactions and Use Tax", thereto. Pursuant to Section 36937 of the Government Code, the ordinance would take effect immediately because it relates to taxes for the usual and current expenses of the City. Next, the Council would adopt a resolution ordering the submission of a proposition to the voters at the special municipal election on November 8, 2005, to consider approval of the ordinance. If approved, the ordinance would impose a transactions tax at the rate of one percent of the gross receipts of any retailer from the sale of all tangible personal property sold in the City. The ordinance would also impose a use tax on the storage, use, or other consumption in the City of tangible personal property produced from any retailer at the rate of one percent of the sales price of the property. Certain transactions would be exempted from the tax, such as a sale of property to be used outside the City and which is shipped to a site outside the City. The tax would go into effect April 1, 2006. The tax would be paid in addition to the existing sales tax and would be collected at the same time and in the same manner as the existing sales tax. Because the proposed tax would be a "general tax", the revenues from the tax would go into the City's general fund and could be used for any legal municipal purpose. Finally, the ordinance would require every five years that the Mayor and City Council appoint an independent committee comprised of three experts in financial matters, who would report back to the City Council as to whether the tax should remain in effect for an additional five years, or be placed on the ballot to be extended or repealed by a majority of the voters voting thereon. GEORGE H. EISER, III City Attorney GHE/gmo ® Recycled Paper ORDINANCE NO. 2005 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADDING CHAPTER 4.60 TO THE NATIONAL CITY MUNICIPAL CODE TO IMPOSE A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION BE IT ORDAINED by the People of the City of National City as follows: Section 1. That Title 4 of the National City Municipal Code is hereby amended by adding Chapter 4.60 to read as follows: Chapter 4.60 TRANSACTIONS AND USE TAX Sections: 4.60.010 Title 4.60.020 Definitions 4.60.030 Operative date 4.60.040 Purpose 4.60.050 Contract with State Board of Equalization 4.60.060 Transactions tax rate 4.60.070 Place of sale 4.60.080 Use tax rate 4.60.090 Adoption of provisions of state law 4.60.100 Limitations on adoption of State law and collection of use taxes 4.60.110 Permit not required 4.60.120 Exclusion; exemptions 4.60.130 Permissible uses 4.60.140 Amendments 4.60.150 Enjoining collection forbidden 4.60.160 Severability 4.60.170 Independent committee 4.60.010 Title. This chapter shall be known as the "City of National City Transactions and Use Tax Ordinance". This ordinance shall be applicable in the incorporated territory of the City. 4.60.020 Definitions. As used in this chapter, "City" means the City of National City and "tax" means the transactions and use taxes, sometimes also referred to as "sales tax", imposed under the provisions of this ordinance; "tax revenue" and "tax revenues" mean all proceeds of the tax received by the City from the State Board of Equalization. 2005 Ordinance 1 Imposing a Transactions and Use Tax 4.60.030 Operative date. "Operative date" means the first day that the tax is imposed and collected. The operative date shall be April 1, 2006, unless a later operative date becomes effective under the provisions of Section 4.60.050. 4.60.040 Purpose. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be effective if a majority vote of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 4.60.050 Contract with State Board of Equalization. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 4.60.060 Transactions tax rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 1 % (one percent) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 4.60.070 Place of sale. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from 2005 Ordinance 2 Imposing a Transactions and Use Tax such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 4.60.080 Use tax rate. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of 1 % (one percent) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 4.60.090 Adoption of provisions of state law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 4.60.100 Limitations on adoption of state law and collection of use taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. 2005 Ordinance 3 Imposing a Transactions and Use Tax B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 4.60.110 Permit not required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. 4.60.120 Exclusion; exemptions. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the amount of any state - administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by. the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out -of -City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out -of -City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs 3 and 4 of this subsection B, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 2005 Ordinance 4 Imposing a Transactions and Use Tax C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state -administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs 3 and 4 of this subsection C, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph 7 of this subsection C, a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 4.60.130 Permissible uses. The revenues of the tax shall be deposited in the City's general fund and may be used for any legal municipal purpose. 2005 Ordinance 5 Imposing a Transactions and Use Tax 4.60.140 Amendments. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. 4.60.150 Enjoining collection forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 4.60.160 Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. 4.60.170 Independent committee. Every five (5) years the Mayor, with approval of the City Council, shall appoint an independent committee comprised of three (3) experts in financial matters, who will report back to the Mayor and City Council as to whether the transactions and use tax should remain in effect for an additional five (5) years, or be placed on the ballot to be extended or repealed by a majority of the voters voting thereon Section 2. This ordinance, following its adoption by at least 4 affirmative votes of the City Council and its publication, shall become effective upon the approval of the tax imposed hereunder by a majority of the voters of the City voting thereon at an election called for that purpose. The "operative date" of the tax imposed hereunder shall be as provided in Section 4.60.030. PASSED and ADOPTED this day of , 2005. ATTEST: Michael R. Della, City Clerk 2005 Ordinance 6 Nick Inzunza, Mayor APPROVED AS TO FORM: George H. Eiser, III City Attorney Imposing a Transactions and Use Tax City of National City, California COUNCIL AGENDA STATEMENT 26 MEETING DATE July 19, 2005 AGENDA ITEM NO. (-ITEM TITLE An Ordinance of the City Council of the City of National City declaring an emergency pursuant to Article XIII C of the California Constitution, and ordering the submission of a Measure to impose a Transactions and Use Tax (sales tax) in the amount of one percent (1%) to the qualified voters of the city at the Special Municipal Election to be held on November 8, 2005. PREPARED BY EXPLANATION George H. Eiser, III (Ext. 4221) DEPARTMENT Please see attached Memorandum City Attorney Environmental Fleview X NIA Financial Statement Sufficient funds are available to place the measure on the ballot. Account No. STAFF RECOrMMENDAT Adopt ordinance S3 C3 ARD a Dta136,1 SSMi, l RE. 3;3.' IENIDA'T7ON N/A ATTACHMENTS ( Listed Below ) Proposed ordinance Flesolnation No. A-200 (9/80) City of National City Office of the City Attorney 1243 National City Boulevard., National City, CA 91950-4301 George H. Eiser, III • City Attorney (619) 336-4220 Fax: (619) 336-4327 TDD: (619) 336-1615 TO: Mayor and City Council DATE: July 13, 2005 FROM: City Attorney SUBJECT: Transactions and Use Tax; Placement on November 8, 2005 Ballot; Declaration of Emergency California Revenue and Taxation Code Section 7285.9 authorizes the City Council to levy a transactions and use tax (a sales tax) at a rate of 0.25 percent or a multiple thereof, provided the tax is approved by a two-thirds vote of the City Council and by a majority vote of the qualified voters of the city voting in an election on the issue. At the June 21, 2005 City Council Meeting, the Council directed the staff to include on the July 19 agenda a resolution placing a measure on the November 8 ballot for voter approval of a one -cent (one percent) transactions and use tax. In order to proceed, pursuant to Section 7285.9 and other applicable state law, the City Council would first enact an ordinance amending the Municipal Code by adding Chapter 4.60, entitled "Transactions and Use Tax", thereto. Pursuant to Section 36937 of the Government Code, the ordinance would take effect immediately because it relates to taxes for the usual and current expenses of the City. Next, the Council would adopt a resolution ordering the submission of a proposition to the voters at the special municipal election on November 8, 2005, to consider approval of the ordinance. The City Manager has presented evidence that the City is facing a structural budget deficit in the magnitude of a $6.7 Million annual shortfall in funding City services, facilities and programs, which will result in a substantial reduction in those services, facilities and programs unless additional sources of revenue can be found. Article XIII C, Section 2 of the California Constitution requires that a general tax must be approved by a majority vote of the qualified voters of the City voting in an election on the issue, and that said election shall be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency declared by unanimous vote of the governing body. The proposed ordinance finds, determines and declares that an emergency exists within the meaning of Article 13 C, Section 2 of the California Constitution in that without additional revenues, the City is facing a structural budget deficit in the magnitude of a $6.7 Million annual shortfall in funding City services, facilities and programs, which will result in a substantial reduction in those services, facilities and programs unless additional sources of revenue are found. The proposed ordinance orders the submission of a measure to impose a Transactions and Use Tax of one percent to the qualified voters of the City at the Special Municipal Election to be held on November 8, 2005. The ordinance would take effect immediately as an ordinance relating to an election, pursuant to Government Code Section 36937(a). GHE/slm lir GEORGE H. EISER, III City Attorney ® Recycled Paper ORDINANCE NO. 2005 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY DECLARING AN EMERGENCY PURSUANT TO ARTICLE XIII C OF THE CALIFORNIA CONSTITUTION, AND ORDERING THE SUBMISSION OF A MEASURE TO IMPOSE A TRANSACTIONS AND USE TAX (A SALES TAX)IN THE AMOUNT OF ONE PERCENT (1 %)TO THE QUALIFIED VOTERS OF THE CITY AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2005 WHEREAS, section 7825.9 of the California Revenue and Taxation Code authorizes cities to levy a transactions and use tax ("sales tax" or "sales and use tax") at a rate of 0.25% (or any multiple thereof) to be expended for general purposes, which transactions and use tax is subject to the approval by a two-thirds majority vote of all the members of the City Council and by a majority vote of the qualified voters of the City voting in an election on the issue; and WHEREAS, Article XIII C, section 2 of the California Constitution requires that a general tax must be approved by a majority vote of the qualified voters of the City voting in an election on the issue, and that said election shall be consolidated with a regularly scheduled general election for members of the governing body of the local government, except in cases of emergency declared by unanimous vote of the governing body; and WHEREAS, the City Manager has presented evidence that the City is facing a structural budget deficit in the magnitude of a $6.7 Million annual shortfall in funding City services, facilities and programs, which will result in a substantial reduction in those services, facilities and programs unless additional sources of revenue can be found; and WHEREAS, the City Council desires to submit a ballot measure on a transactions and use tax to the qualified voters of the City of National City at a Special Municipal Election to be consolidated with the Statewide General Election to be held on November 8, 2005 (the "Consolidated Election"); and NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of National City as follows: Section 1. That the City Council hereby finds, determines and declares that an emergency exists within the meaning of Article 13 C, Section 2 of the California Constitution, in that without additional revenues, the City is facing a structural budget deficit in the magnitude of a $6.7 Million shortfall in funding City services, facilities and programs, which will result in a substantial reduction in those services, facilities and programs unless additional sources of revenues can be found. Ordinance No. 2005 — July 19, 2005 Page Two Section 2. At the consolidated statewide general election to be held on November 8, 2005, there shall be submitted to the qualified voters the following measure to approve an ordinance levying a transactions and use tax for general purposes: Shall an ordinance be approved imposing a one percent transactions and use tax (a sales tax) for City services, facilities and programs? Yes No Section 3. The measure shall be submitted to the voters of National City as required by Section 53720 et seq. of the California Government Code, approved by the voters of California in 1986 as Proposition 62, as required by Article XIII C of the California Constitution, approved by the voters of California in 1996 as Proposition 218, and as required by Section 7285.9 of the California Revenue and Taxation Code. Section 4. This ordinance shall take effect immediately as an ordinance relating to an election, pursuant to California Government Code Section 36937 (a). PASSED and ADOPTED this 191" day of July, 2005. Nick Inzunza, Mayor ATTEST: Michael Della, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE July 19, 2005 AGENDA ITEM NO. 7ITEM TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ORDERING THE SUBMISSION OF A MEASURE TO THE QUALIFIED VOTERS OF THE CITY OF NATIONAL CITY AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2005, RELATING TO APPROVAL OF AN ORDINANCE IMPOSING A ONE CENT TRANSACTIONS AND USE TAX (A SALES TAX) FOR CITY SERVICES, FACILITIES, AND PROGRAMS 27 PREPARED BY EXPLANATION George H. Eiser, III (Ext. 4221) DEPARTMENT Please see attached memorandum. City Attorney (-Environmental Review Financial Statement X N/A Sufficient funds are available to place the measure on the ballot. Account No. STAFF RECOMMENDATION Adopt resolution BOA3 Ira / C0 iSSiO7N RIEC 'ilMMF.NDATTO?d N/A ATTACHMENTS ( Listed SeI©w ) Resolution No. Proposed resolution A-200 (9/80) City of National City Office of the City Attorney 1243 National City Boulevard., National City, CA 91950-4301 George H. Eiser, III . City Attorney (619) 336-4220 Fax: (619) 336-4327 TDD: (619) 336-1615 TO: Mayor and City Council DATE: July 6, 2005 FROM: City Attorney SUBJECT: Transactions and Use Tax; Placement on November 8, 2005 Ballot California Revenue and Taxation Code Section 7285.9 authorizes the City Council to levy a transactions and use tax (a sales tax) at a rate of 0.25 percent or a multiple thereof, provided the tax is approved by a two-thirds vote of the City Council and by a majority vote of the qualified voters of the city voting in an election on the issue. At the June 21, 2005 City Council Meeting, the Council directed the staff to include on the July 19 agenda a resolution placing a measure on the November 8 ballot for voter approval of a one -cent (one percent) transactions and use tax. In order to proceed, pursuant to Section 7285.9 and other applicable state law, the City Council would first enact an ordinance amending the Municipal Code by adding Chapter 4.60, entitled "Transactions and Use Tax", thereto. Pursuant to Section 36937 of the Government Code, the ordinance would take effect immediately because it relates to taxes for the usual and current expenses of the City. Next, the Council would adopt a resolution ordering the submission of a proposition to the voters at the special municipal election on November 8, 2005, to consider approval of the ordinance. If approved, the ordinance would impose a transactions tax at the rate of one percent of the gross receipts of any retailer from the sale of all tangible personal property sold in the City. The ordinance would also impose a use tax on the storage, use, or other consumption in the City of tangible personal property produced from any retailer at the rate of one percent of the sales price of the property. Certain transactions would be exempted from the tax, such as a sale of property to be used outside the City and which is shipped to a site outside the City. The tax would go into effect April 1, 2006. The tax would be paid in addition to the existing sales tax and would be collected at the same time and in the same manner as the existing sales tax. Because the proposed tax would be a "general tax", the revenues from the tax would go into the City's general fund and could be used for any legal municipal purpose. Finally, the ordinance would require every five years that the Mayor and City Council appoint an independent committee comprised of three experts in financial matters, who would report back to the City Council as to whether the tax should remain in effect for an additional five years, or be placed on the ballot to be extended or repealed by a majority of the voters voting thereon. GHE/gmo ga.. GEORGE H. EISER, III City Attorney ® Recycled Paper RESOLUTION NO. 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ORDERING THE SUBMISSION OF A PROPOSITION TO THE QUALIFIED VOTERS OF THE CITY OF NATIONAL CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2005,. RELATING TO AN ORDINANCE IMPOSING A ONE CENT TRANSACTIONS AND USE TAX (A SALES TAX) FOR CITY SERVICES, FACILITIES, AND PROGRAMS WHEREAS, the City Council of the City of National City desires to submit to the qualified voters of the city at the general municipal election to be held on November 8, 2005, a proposed ordinance imposing a one percent transactions and use tax (a sales tax); and WHEREAS, the City Council is thereupon authorized and directed by statute to submit the proposed ordinance to the qualified voters. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: Section 1. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, the following question shall be submitted to the qualified voters of the city at the General Municipal Election to be held on November 8, 2005: Shall an ordinance be adopted imposing a one percent transactions and use tax (a sales tax) for City services, facilities and programs? Yes No Section 2. That the above proposed ordinance to be submitted to the voters is attached hereto as Exhibit "A" and incorporated herein by reference. Section 3. That the ballots to be used at the election shall be in the form and content as required by law. Section 4. That the City Clerk is authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct and election. Section 5. That the polls for the election shall be open at seven o'clock a.m. of the day of the elections and shall remain open continuously from that time until eight o'clock p.m. of the same day when the polls shall be closed, except as provided in Section 14401 of the Election Code of the State of California. Resolution No. 2005 — July 19, 2005 Page Two Section 6. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections. Section 7. That notice of the time and place of holding said election is given and the City Clerk is authorized, instructed and directed to give such further or additional notice of the election in time, form and manner as required by law. PASSED and ADOPTED this 19th day of July, 2005. Nick Inzunza, Mayor ATTEST: Michael Della, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney EXHIBIT "A" ORDINANCE NO. 2005 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADDING CHAPTER 4.60 TO THE NATIONAL CITY MUNICIPAL CODE TO IMPOSE A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION BE IT ORDAINED by the People of the City of National City as follows: Section 1. That Title 4 of the National City Municipal Code is hereby amended by adding Chapter 4.60 to read as follows: Chapter 4.60 TRANSACTIONS AND USE TAX Sections: 4.60.010 Title 4.60.020. Definitions 4.60.030 Operative date 4.60.040 Purpose 4.60.050 Contract with State Board of Equalization 4.60.060 Transactions tax rate 4.60.070 Place of sale 4.60.080 Use tax rate 4.60.090 Adoption of provisions of state law 4.60.100 Limitations on adoption of State law and collection of use taxes 4.60.110 Permit not required 4.60.120 Exclusion; exemptions 4.60.130 Permissible uses 4.60.140 Amendments 4.60.150 Enjoining collection forbidden 4.60.160 Severability 4.60.170 Independent committee 4.60.010 Title. This chapter shall be known as the "City of National City Transactions and Use Tax Ordinance". This ordinance shall be applicable in the incorporated territory of the City. 4.60.020 Definitions. As used in this chapter, "City" means the City of National City and "tax" means the transactions and use taxes, sometimes also referred to as "sales tax", imposed under the provisions of this ordinance; "tax revenue" and "tax revenues" mean all proceeds of the tax received by the City from the State Board of Equalization. 2005 Ordinance 1 Imposing a Transactions and Use Tax EXHIBIT "A" 4.60.030 Operative date. "Operative date" means the first day that the tax is imposed and collected. The operative date shall be April 1, 2006, unless a later operative date becomes effective under the provisions of Section 4.60.050. 4.60.040 Purpose. This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be effective if a majority vote of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 4.60.050 Contract with State Board of Equalization. Prior to the operative date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the State Board of Equalization prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 4.60.060 Transactions tax rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of 1 % (one percent) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance. 4.60.070 Place of sale. For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from 2005 Ordinance 2 Imposing a Transactions and Use Tax EXHIBIT "A" such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the State Board of Equalization. 4.60.080 Use tax rate. An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of 1% (one percent) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 4.60.090 Adoption of provisions of state law. Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein. 4.60.100 Limitations on adoption of state law and collection of use taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when: 1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Ordinance. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. 2005 Ordinance 3 Imposing a Transactions and Use Tax EXHIBIT "A" B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 4.60.110 Permit not required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance. 4.60.120 Exclusion; exemptions. A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley -Burns Uniform Local Sales and Use Tax Law or the amount of any state - administered transactions or use tax. B. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out -of -City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out -of -City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs 3 and 4 of this subsection B, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 2005 Ordinance 4 Imposing a Transactions and Use Tax EXHIBIT "A" C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state -administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance. 5. For the purposes of subparagraphs 3 and 4 of this subsection C, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. 6. Except as provided in subparagraph 7 of this subsection C, a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. 7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 4.60.130 Permissible uses. The revenues of the tax shall be deposited in the City's general fund and may be used for any legal municipal purpose. 2005 Ordinance 5 Imposing a Transactions and Use Tax EXHIBIT "A" 4.60.140 Amendments. All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance. 4.60.150 Enjoining collection forbidden. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 4.60.160 Severability. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. 4.60.170 Independent committee. Every five (5) years the Mayor, with approval of the City Council, shall appoint an independent committee comprised of three (3) experts in financial matters, who will report back to the Mayor and City Council as to whether the transactions and use tax should remain in effect for an additional five (5) years, or be placed on the ballot to be extended or repealed by a majority of the voters voting thereon Section 2. This ordinance, following its adoption by at least 4 affirmative votes of the City Council and its publication, shall become effective upon the approval of the tax imposed hereunder by a majority of the voters of the City voting thereon at an election called for that purpose. The "operative date" of the tax imposed hereunder shall be as provided in Section 4.60.030. PASSED and ADOPTED this day of , 2005. ATTEST: Michael R. Dalla, City Clerk Nick Inzunza, Mayor APPROVED AS TO FORM: George H. Eiser, I11 City Attorney 2005 Ordinance 6 Imposing a Transactions and Use Tax MEETING DATE July 19, 2005 City of Naticnai City, California COUNCIL AGENDA STATEMENT AGENDA ITEM NO. 28 7-ITEM TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY CALLING AND GIVING NOTICE OF THE HOLDING OF A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2005, FOR THE PURPOSE OF SUBMISSION OF A BALLOT MEASURE TO THE VOTERS AS REQUIRED BY THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES. PREPARED BY EXPLANATION George H. Eiser, Ill (Ext. 4221) DEPARTMENT City Attorney The proposed resolution would call and give notice of a Special Municipal Election to be held on November 8, 2005 for the purpose of submission of a ballot measure to the voters relating to approval of an ordinance imposing a One Cent Transactions and Use Tax (sales tax) for city services, facilities, and programs. Environmental Review N/A Financial Statement Sufficient funds are available to place the measure on the ballot. STAFF RECOMMENDATION Adopt resolution BCARD I CCI I EN'DAT1ON ATTACHMENTS ( Listed 3eilow Proposed resolution A-200 (9/80) Account No. Resoiwtion No. RESOLUTION NO. 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY CALLING AND GIVING NOTICE OF THE HOLDING OF A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2005, FOR THE PURPOSE OF SUBMISSION OF A BALLOT MEASURE TO THE VOTERS AS REQUIRED BY THE PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES WHEREAS, under the provisions of the laws relating to General Law cities in the State of California, a Special Municipal Election shall be held on November 8, 2005 for the purpose of submission of a ballot measure to the voters. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: Section 1. That pursuant to the requirements of the laws of the State of California relating to General Law cities, there is called and ordered to be held in the City of National City, California, on Tuesday, November 8, 2005, a Special Municipal Election for the purpose of submission of the following ballot measure to the voters: Shall an ordinance be approved imposing a one percent transactions and use tax (a sales tax) for City services, facilities and programs? Yes No Section 2. The election hereby called for November 8, 2005, is hereby ordered consolidated with any other election to be held within the City on said date. The election shall be held and conducted, election officers appointed, voting precincts designated, ballots printed, polls opened and closed, ballots counted, and returned, returns canvasses, results declared, and all other proceedings incidental to and connected with the election shall be regulated and done in accordance with the provisions of law regulating the election as specified herein. The Board of Supervisors of San Diego County and the San Diego County Registrar of Voters, are hereby requested to order the consolidation of the municipal election hereby called with any other election to be held within the City on said date and that said election be held in all respects as if there were only one election. Section 3. That the ballots to be used at the election shall be in form and content as required by law. Resolution No. 2005 — July 19, 2005 Page Two Section 4. That the City Clerk is authorized to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct this election. Section 5. That the Polls for the election shall be open at seven o'clock a.m. of the day of the election and shall remain open continuously from that time until eight o'clock p.m. of the same day when the polls shall be closed, except as provided in Section 14401 of the Elections Code of the State of California. Section 6. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections. Section 7. That notice of the time and place of holding the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. PASSED and ADOPTED this 19th day of July, 2005. Nick Inzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney TWEETING DATE July 19, 2005 City of National City, California COUNCIL AGENDA STATEMENT AGENDA ITEM NO. 29 (-ITEM TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO TO CONSOLIDATE A SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2005, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE SAME DATE PURSUANT TO SECTION 10403 OF THE ELECTION CODE. PREPARED BY EXPLANATION place a ballot consolidate a County Board The proposed George H. Eiser, III s'. City Attorney DEPARTMENT (Ext. 4221) Section 10403 of the California Elections Code authorizes the City to measure on the same ballot as that provided for a statewide election, and to special municipal election with a statewide election, upon the filing with the of Supervisors of a resolution of the City Council requesting the consolidation. resolution would satisfy the requirements of Section 10403. Environmental Review x M/.A Financial Statement Sufficient funds are available to place the measure on the ballot. STAFF RECOMMENDATION Adopt resolution BIDA[ D / Ct3i� ? BS1C'N RE CDMMIEHDATiQ Account No. ATTACHMENTS ( Listed Below ) Resolution NO. Proposed resolution A-200 (9/80) RESOLUTION NO. 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO TO CONSOLIDATE A SPECIAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2005 WITH THE STATEWIDE. GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO SECTION 10403 OF THE ELECTIONS CODE WHEREAS, the City Council of the City of National City called a Special Municipal Election to be held on November 8, 2005, for the purpose of submission of a ballot measure to the voters; and WHEREAS, it is desirable that the Special Municipal Election be consolidated with the statewide general election to be held on the same date and that within the City the precincts, polling places and election officers for the two election be the same, and that the Registrar of Voters of the County of San Diego canvass the returns of the Special Municipal Election and that the election be held in all respects as if there were only one election. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY DOES HEREBY RESOLVE AS FOLLOWS: Section 1. That pursuant to the requirements of Section 10403 of the Election Code, the Board of Supervisors of the County of San Diego is hereby requested to consent and agree to the consolidation of a Special Municipal Election with the statewide general election on Tuesday, November 8, 2005 for the purpose of submission of the following ballot measure to the voters: Shall an ordinance be approved imposing a one percent transactions and use tax (a sales tax) for City services, facilities and programs? Yes No Section 2. That the Registrar of Voters is authorized to canvass the returns of the Special Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. Section 3. That the Board of Supervisors is requested to issue instructions to the Registrar of Voters to take any and all steps necessary for the holding of the consolidated election. Section 4. That the City of National City recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any such costs. Resolution No. 2005 — July 19, 2005 Page Two Section 5. That the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the Registrar of Voters of the County of San Diego, and enter it into the Book of original Resolutions of the City. PASSED and ADOPTED this 19th day of July, 2005. Nick Inzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney City cf Iia tonal City, Caliiorni.a COUNCIL AGENDA STATEMENT MEETING DATE July 19, 2005 AGENDA ITEM NO. 30 7' ITEM TITLE A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE FILING OF AN IMPARTIAL ANALYSIS AND WRITTEN ARGUMENTS RELATING TO A MEASURE TO APPROVE AN ORDINANCE IMPOSING A ONE CENT TRANSACTIONS AND USE TAX (A SALES TAX) FOR CITY SERVICES, FACILITIES, AND PROGRAMS. George H. Eiser, III, City Attorney (Ext. 4221) PR APED BY EXPLANATION ARTENT Section 9280 of the California Elections Code authorizes the City Council to direct the City Attorney to prepare an impartial analysis of the ballot measure, not to exceed 500 words in length. The impartial analysis shall show the effect of the measure on existing law and the operation of the measure. Preparation of the impartial analysis is discretionary with the City Council. An impartial analysis was prepared for the term limit measure which was voted on an approved in November, 2004. Section 9282 of the Election Code provides that the City Council, our councilmember authorized by the City Council, or any eligible voter, or an association of citizens, or a combination of voters and associations, may file a written argument for or against a measure. The written argument may not exceed 300 words in length. Up to five signatures may appear on the written argument. As with the impartial analysis, submittal of ballot arguments is discretionary with the City Council. Section 9285 of the Elections Code authorizes the filing of rebuttal arguments by those filing arguments in support of and in opposition to a measure. However, the City Council, pursuant to Resolution No. 2001-191, took action to preclude the filing of rebuttal arguments. This action will remain in effect until such time as Resolution No. 2001-191 is repealed. X Environmental Review N/A Financial Statement N/A Account No. STAFF RECOMMENDATION Adopt resolution BOARD CO N/A RsCO1iI'm7AA,A710H ATTACHMENTS I Listed Below) Resolution No. Resolution A-200 (9/80) RESOLUTION 2005 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE FILING OF AN IMPARTIAL ANALYSIS AND WRITTEN ARGUMENTS RELATING TO A MEASURE TO APPROVE AN ORDINANCE IMPOSING A ONE CENT TRANSACTION AND USE TAX (A SALES TAX) FOR CITY SERVICES, FACILITIES, AND PROGRAMS, AND REQUESTING COUNTY SERVICES WHEREAS, the City Council has passed a Resolution entitled "Resolution of the City Council of the City of National City Ordering the Submission of a Measure to the Qualified Voters of the City of National City at the Special Municipal Election to be held on November 8, 2005, Relating to Approval of an Ordinance Imposing a Once Cent Transactions and Use Tax (A Sales Tax) for City Services, and Programs"; and WHEREAS, the City Council desires that the election called under the Resolution be consolidated with any other election to occur on November 8, 2005, in the territory of the City and that said measure be included on the ballot for said election; and WHEREAS, Section 9280 of the California Elections Code authorizes the filing of an impartial analysis and Sections 9281-9283 of said Code authorize the filing of written arguments for or against any ballot proposition. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, AS FOLLOWS: Section 1. Request to County to Conduct Election. The Board of Supervisors of the County of San Diego and the San Diego County Registrar of Voters, are hereby requested and authorized to properly and lawfully hold and conduct a municipal election in the City on November 8, 2005, pursuant to the Resolution, including but not restricted to the providing and printing of ballots and polling place cards, election supplies, voting booths, flags, registration lists and any other materials and services required to lawfully conduct the election. Section 2. Authorization to file Written Argument. The Mayor and the City Council, or their designee, are hereby authorized to prepare and file a written argument for the proposition to be submitted at said municipal election. All written arguments for or against the proposition shall not exceed 300 words in length and shall otherwise conform to and comply with all applicable provisions of the California Elections Code. The deadline date for the submittal of arguments, in favor or in opposition, shall be as required by the City Clerk under Section 9286 of the California Elections Code. Section 3. City Attorney's Impartial Analysis. The City Clerk is hereby directed to submit to the City Attorney a certified copy of the Resolution. The City Attorney is hereby authorized and directed to prepare an impartial analysis of the proposition specified in the Resolution showing the effect of the measure on the existing law and the operation of the measure, said analysis to be submitted by the City Attorney to the Resolution No. 2005 — July 19, 2005 Page 2 City Clerk for printing before the arguments for and against the measure. The analysis shall not exceed 500 words in length and shall otherwise comply in all respects with the applicable provisions of the California Elections Code. The deadline date for submittal of the analysis shall be as required by the City Clerk. Section 4. Consolidation; Manner of Conducting Election. The election hereby called for November 8, 2005, is hereby ordered consolidated with any other election to be held within the City on said date. The election shall be held and conducted, election officers appointed, voting precincts designated, ballots printed, polls opened and closed, ballots counted, and returned, returns canvasses, results declared, and all other proceedings incidental to and connected with the election shall be regulated and done in accordance with the provisions of law regulating the election as specified herein. The Board of Supervisors of San Diego County and the San Diego County Registrar of Voters, are hereby requested to order the consolidation of the municipal election hereby called with any other lection to be held within the City on said date and that said election be held in all respects as if there were only one election. Section 5. Consolidation; Cost. The City of National City Recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any such costs. PASSED and ADOPTED this 19th day of July, 2005. Nick Inzunza, Mayor ATTEST: Michael Della, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE July 19, 2005 AGENDA ITEM NO. 31 ITEM TITLE CITY OF NATIONAL CITY PUBLIC SAFETY CAMERA SYSTEM PREPARED BY DEPARTMENT CRAIG BOEGLER, LT. HOMELAND SECURITY UNIT EXT. 4433 POLICE DEPARTMENT EXPLANATION THE CITY IS PROPOSING TO INSTALL A NETWORK OF CLOSED CIRCUIT TELEVISION CAMERAS (CCTV) THROUGHOUT THE CITY ON PUBLIC PROPERTY TO ENHANCE PUBLICE SAFETY. THE GOALS OF THE CCTV CAMERAS IS TO PROVIDE REAL TIME VISUAL INFORMATION DURING MAJOR EVENTS, MORE EFFICIENTLY DEPLOY RESOURCES, MONITOR THE PUBLIC AREAS AROUND KEY LOCATIONS AT RISK OF TERRORISM AND AID IN THE IDENTIFICATION AND APPREHENSION OF SUSPECTS. THE PROPOSED CAMERA LOCATIONS IN NATIONAL CITY WILL BE BASED ON CRIME ANALYSIS, INPUT FROM THE COMMUNITY AND HOMELAND SECURITY CONSIDERATIONS. THE PROPOSED CAMERA LOCATIONS AND CAMERA PLAN OPTIONS ARE CONTAINED IN THE POWER POINT PRESENTATION ATTACHED TO THIS A-200. Environmental Review ✓ N/A Financial Statement THE POLICE DEPARTMENT RECEIVED A FEDERAL GRANT FOR ($53,000.00) TO INSTALL CAMERAS ON ROOSEVELT AVENUE, REFERRED TO AS THE "CAMERA PILOT PROJECT," OR FIRST PHASE OF THE CITY'S PUBLIC SAFETY CAMERA PROJECT. THE FUNDING FOR THE CITYWIDE COMPLETION OF THIS PROJECT IS YET TO BE DETERMINED. Account No. STAFF RECOMMENDATION CITY MANAGER AND THE POLICE CHIEF PURCHASE THE PUBLIC SAFETY CAMERA SYSTEM BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. 1, HARD COPY OF PUBLIC SAFETY CAMERA PROPOSAL POWER POINT 2. PROPOSED NCPD OPERATING PROCEDURE FOR THE USE OF PUBLIC SAFETY CAMERA 3. SUMMARY OF THE PROPOSED GRANT FUNDED INSTALLATION OF CAMERAS ON ROOSEVELT AVE. The National City Public Safety Camera Project The Public Safety Cameras ■ Designed to capture criminal activity ■ Assist police in responding to crimes and for evidence in past crimes ■ Assist in the Homeland Security Mission ■ Assist officers with calls for service The Public Safety Cameras ■ Aid in the identification of suspects ■ Access to video footage ■ Prosecution ■ Cost Effective Public Safety Strategy & Force Multiplier ■ Designed to operate 24/7 • Enhance the day to day safety and security of persons in National City • Respect the privacy rights of persons in National City. • Assist law enforcement • Force Multiplier ■ Deploy resources effectively ■ Cameras will monitor only areas where there is no expectation of privacy. ■ Regard to First Amendment and the Fourth Amendment. ■ Public hearings, Community Working Group, Public Announcements. ■ Signs in English and Spanish will be posted at every camera location. Monitoring ■ Operators are defined as sworn police officers and dispatchers ■ Operator will transfer the image to their console during in -progress calls. ■ No audio capabilities. National City Camera Location Considerations ■ Crime Analysis ■ Homeland Security Concerns ■ Input from the Community Three Camera Plans ■ Optimum Plan — 36 cameras — . Approximately S536,000 / @ ■ Mid -Range Plan — 16 cameras . Approximately S238,000 / @ ■ Budget Plan — 9 cameras . Approximately S 134,000 / @ 14,888 each 14,888 each 14,888 each Network -Enabled Wireless CCTV System for Criminal Activity Surveillance — Phase I Program Narrative Introduction The Police Department of National City, California, intends to implement the closed-circuit television -based (CCTV -based) crime -reduction project Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase I in its red light district beginning with a section of Roosevelt Avenue, also known as "Motel Row." This is a high -crime area that, in particular, has significant problems with prostitution and vehicle theft. The crime from this area inevitably spills over into the nearby businesses and neighborhoods, creating "quality of life" issues for residents and business owners. The Annual Report indicates that the National City Police Department responds to just over 35,000 calls for service per year and average nearly 3,000 calls per month. Cameras placed in the red light district will have a dual immediate purpose: 1) to help police enforce laws regarding prostitution and 2) to identify persons committing property crimes, including and especially vehicle theft. Additionally, the project has a dual long-term purpose: 1) to reduce crime and 2) to increase citizens' feelings of community and personal safety. National City, CA Police Depaitinent Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Program Narrative Page 1 of 12 Need for the Project Roosevelt Avenue is a motel/hotel district, located just a few yards from Interstate 5—one of the heaviest traveled portions of freeway in the country and located very close to the US -Mexican border. Travelers and truck drivers park their vehicles along the street when taking advantage of the lodging available on Roosevelt Avenue. Property crime and vehicle thefts are all too common Per capita, National City has one of the highest auto theft rates in California and the United States. Additionally, street robberies of pedestrians have and continue to be a significant problem in this area, as well. Surveillance cameras will allow police to identify criminals and successfully prosecute cases. It is National City's hope that the cameras will also allow police to respond to identified criminals and criminal actions in a timelier manner, possibly before property is lost and/or persons are injured. National City expects that the presence of the cameras will ultimately deter crime in the area, reducing it significantly. Substantial Increase in Violent Crimes between 2000 and 2004 In 2004, the National City Police Department logged 421 reports of violent crime.' Although there was a 1% decrease in violent crimes between 2003 and 2004, overall, this marks a 22% increase in violent crimes between 2000 and 2004. Reported vehicle thefts for 2004 totaled 900. Again, although this marks a reduction from 2003 (996), overall it marks a sharp increase since 2000. For the years 2000-2002, reported vehicle thefts averaged 676; therefore, 2004 statistics indicate a 25% increase in vehicle thefts. Property crimes also rose significantly between 2000 and 2004 with a 27% increase. Between 2003 and 2004, all arrests were up, as well. Adult felony ' "Violent crimes" include: homicide, rape, robbery, aggravated assault. All statistics in the remainder of this paragraph were taken from the National City PD Annual Report for 2004 which is inclusive of analysis of five-year crime trends. National City, CA Police Depaitinent Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Program Narrative Page 2 of 12 arrests saw a 17% increase, adult misdemeanor arrests saw a 16% increase, juvenile felony arrests saw a 15% increase, and juvenile misdemeanor arrests saw a 13% increase. Prostitution is a Significant Problem Compared to the nearby City of La Mesa --a city of relatively the same size (population totals for the two cities are within one thousand persons), National City has a significant crime problem. While La Mesa has a prostitution rate average of .26 per thousand people, National City's average prostitution rate is more than twice as high at .60 per thousand people.2 Manslaughter arrests in National City for 1999, 2002, and 2003 averaged 150, whereas La Mesa's manslaughter arrests averaged only 97.3 In 2004, the FBI Index Violent Crime Rate for National City was determined to be 7.3 versus La Mesa's rate of 3.1. For the years 1999, 2002, and 2003, El Cajon, a nearby city with a population nearly twice as high as National City's population, has an average prostitution rate of .54 per 1,000 people. Even San Diego, a city with a population that is two and a half times the size of National City's population, has an average prostitution rate of only .54 per 1,000 people for the years 1999, 2002, and 2003. Clearly, National City's average rate of .60 per 1,000 people is quite high for a community of its size and region.4 2 Statistics were taken from SANDAG for 1999, 2002, and 2003 3 Ibid. 4 Statistics were taken from SANDAG for 1999, 2002, and 2003 National City, CA Police Depaitinent Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Program Narrative Page 3 of 12 Limited Officer Resources The CCTV project will also enable the police force to maximize its capacity to respond to crime in general, but specifically to crime in the Motel Row area. In 2002, the number of officers assigned to the Neighborhood Policing Team was reduced. This occurred again in 2003, and in 2004 the officers were reorganized completely in order to focus their energies on enforcement related directly to gangs. This has essentially left a gap in services available to proactively monitor and respond to other areas of significant criminal activity in National City, including prostitution and vehicle theft in particular. The CCTV system will allow officers and staff available at the station to directly monitor activity in the Motel Row area from the station. They will alert officers in the field when a problem is occurring or could potentially occur so that the field officers can respond at that time and focus their efforts elsewhere at other times. This will enable the Police Department to maximize all available human resources. The Bigger Picture: Homeland Security Connections In addition to being a suburb of San Diego, (a major US urban area at risk based on population density alone) National City is located near several other significant US points, putting it at notable risk to potential homeland security threats. San Diego Bay —a major US water port and a potential point of US entry for terrorists —is only approximately five miles from National City. In fact, 8th Street runs directly through the City and out to the bay. As mentioned previously, National City —and specifically the Motel Row area is located very close to the US -Mexican border. Located approximately 15 miles from Mexico, National City is a very realistic destination for illegal immigrants and even terrorists entering the US through Mexico. Additionally, National City borders a US Naval Base, making the City a potential inadvertent (or National City, CA Police Depaituient Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Program Narrative Page 4 of 12 even intentional) military target. Clearly, National City is at high risk for homeland security threats, and although the CCTV project will not necessarily reduce the threat level, it will allow first responders a means for constant city monitoring of actual and potential dangers. The project will also increase National City's first responders' ability to respond to a crisis situation by providing a means for timely and exact identification of the crisis and its location. Project Description Overview of the Proposed Project During the project period of the Justice Assistance Grant, the Police Department of National City, California will be leveraging and maximizing its current human and technological resources by implementing a closed-circuit television (CCTV) system in the high crime rate area of the City inclusive of Roosevelt Avenue —aka Motel Row. This is Phase I (a pilot) of a multiple -part project expected to ultimately reduce crime and increase citizens' feelings of community and personal security. During Phase I, cameras will be positioned on both sides of Roosevelt at 8th Street. Future phases will result in additional cameras added along Roosevelt all the way down to the 4th Street intersection. National City anticipates progressing on to Phase II as soon as the project committees determines Phase I has been successfully implemented. Long -Term Goals: 1. To reduce crime in National City, CA 2. To increase National City citizens' feelings of community and personal security s Project committee may include: Project Director, Police Department leadership, City Emergency Manager, fire services leadership, public health leadership, District Attorney, Public Defender, City Council Members National City, CA Police Depailiuent Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Program Narrative Page 5 of 12 Short -Term Goals: 1. To help police enforce laws regarding prostitution 2. To identify persons committing property crimes, including and especially vehicle theft Details of the Project The cameras will act as a deterrent in the designated area, provide a means for recording criminal acts for later prosecution, and provide the Police Department with the ability to actively monitor the status of the area from a remote location. This will allow the depaitnient to avoid dispatching officers when unnecessary, while enabling them to dispatch officers more quickly for true emergencies because emergencies will be identified sooner. Wireless CCTV cameras will be placed along Roosevelt Avenue at 8th Street, connected back to a network attached to a Digital Video Recorder. Live pictures from the scene will be recorded for later use during prosecution in court, while simultaneously allowing live images from multiple cameras to be available to authorized City personnel at any location on the City's data network. The system will also have audio capabilities. The positioning and implementation of these cameras is expected to have a significant impact on crime, and specifically prostitution and vehicle theft, in the immediate area under surveillance, and eventually throughout the City, enabling the Police Department to monitor targeted areas for criminal activity and for other homeland security purposes. National City, CA Police DepaiLuient Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Program Narrative Page 6 of 12 Work Plan April/May 2005: • Put equipment needs out to bid • Purchase equipment • Distribute memorandums on appropriate camera surveillance, get signatures from all Police Department employees and project committee members, and collect and file signed forms • Distribute the first community survey and tabulate the results to be used as baseline data and discussed in the committee meeting. April 2005-March 2007: • Seek out and apply to appropriate funding opportunities to expand the project into the next phase May/June 2005: • Position a total of six wireless CCTV cameras and two PTZ (Point, Tilt, Zoom) cameras on Roosevelt Avenue and 8th Street and one Digital Video Recorder at the Police Department • Train personnel regarding proper equipment use May -August 2005: • Begin utilizing equipment on a daily basis to enforce the law and in prosecution efforts • Collect baseline data on crime statistics, prosecutions, etc. September 2005: National City, CA Police Depa,.tinent Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Program Narrative Page 7 of 12 • Project Director and project committee meet to review baseline data and exchange anecdotal evaluations of project implementation to date • Create a mid -project report September 2005-March 2006: • Continue utilizing equipment on a daily basis to enforce the law and in prosecution efforts • Continue collecting data on crime statistics, prosecutions, etc. December 2005: • Project Director and project committee meet to further evaluate the project • Create a mid -project report March 2006: • Project Director and project committee meet to discuss final evaluation of the first year of the project • Create a first -year project report April 2006-March 2007 • Continue utilizing equipment on a daily basis to enforce the law and in prosecution efforts • Continue collecting data on crime statistics, prosecutions, etc. • Project Director and project committee meet twice during this period to evaluate the project • Create a report on the project status following each committee meeting February 2007: National City, CA Police Depaztment Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Program Narrative Page 8 of 12 • Distribute the second community survey and tabulate results to be discussed at the committee meeting Key Advantages of This Project Concept The proposed solution will leverage the investment that National City has already made in fiber backbone and Cisco IP data networks. It will allow Police, Fire, City officials, etc., to view live images in real time from remote locations. In fact, given the correct level of authorization, one could view live images from across the country by simply using a PC with an internet connection. Clearly, this capability poses local advantages while positioning National City to partner and communicate directly with federal departments (such as the Department of Justice, the Department of Homeland Security, the Center for Disease Control and Prevention, etc.) in the event of a crisis or specifically identified threat. Precedents for This Project Concept Results of Implementation Elsewhere in Public Safety • 2004: MacArthur Park west of downtown Los Angeles, CA saw a 45% reduction in crime within six months after implementing a surveillance camera project.6 • 2004: The City of Chicago, IL reported the lowest violent crime rates the City had seen in 12 years and credited the improvement to the use of surveillance cameras throughout the City set up approximately six months before the report. • 2002: The City of Johannesburg, South Africa saw an 80% reduction in crime following the installation of surveillance cameras throughout the City.8 6 www.geinfrastructure.com & www.policeone.com www.nbc5.com National City, CA Police Department Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Program Narrative Page 9 of 12 Evaluation/Measuring Success The Project Director and project committee will meet in September and December of 2005 and March of 2006 and twice between April 2006 and March 2007 to review the data collected through standard police, court, and camera surveillance records and exchange anecdotal evaluations of the project. Community surveys will be distributed, tabulated and discussed at the beginning and end of the project period. The Project Director will create a written report detailing and analyzing the data collected and summarizing the committee's discussion following each meeting. All required federal reports will be completed and filed in a correct and timely manner. Long -Term .Goals: 3. To reduce crime in National City, CA 4. To increase National City citizens' feelings of community and personal security Short -Term Goals: 3. To help police enforce laws regarding prostitution 4. To identify persons committing property crimes, including and especially vehicle theft Objective: Acquire, position, and implement CCTV system on Roosevelt Avenue at 8th Street Objective & Measurable Outcome: To increase prostitution arrests by 20% in the first six months Determined By: Data from police records and camera surveillance 8 www.joburg.or.za National City, CA Police Department Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Program Narrative Page 10 of 12 Objective & Measurable Outcome: To increase vehicle theft arrests by 20% in the first six months Determined By: Data from police records and camera surveillance Objective & Measurable Outcome: To increase vehicle theft prosecutions by 10% in the first six months Determined By: Data from police and court records and camera surveillance Objective & Measurable Outcome: To increase prostitution arrests by 30% (from baseline) in the second six months Determined By: Data from police records and camera surveillance Objective & Measurable Outcome: To increase vehicle theft arrests by 30% (from baseline) in the second six months Determined By: Data from police records and camera surveillance Objective & Measurable Outcome: To increase vehicle theft prosecutions by 15% in the second six months Determined By: Data from police and court records and camera surveillance Objective & Measurable Outcome: See a 40% decrease in overall crime by the end of the second year National City, CA Police Department Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Program Narrative Page 11 of 12 Determined By: Data from police and court records and camera surveillance Objective & Measurable Outcome: See a 50% decrease in violent crimes by the end of the second year Determined By: Data from police and court records and camera surveillance Objective & Measurable Outcome: At the end of the two-year period, 10% of the community members participating in the survey will express a feeling of greater security since the implementation of the project. Coordination of Funding National City's multi -phased project will use 2005 JAG funding for local governments available directly through the US Department of Justice to fund Phase I: the positioning and implementation of a CCTV system on Roosevelt Avenue at 8th Street. This phase is the pilot portion of the greater project. Project continuation through the completion of additional phases resulting in extending the CCTV system throughout the City and the incorporation of additional local first responder groups will be contingent on both the success of the pilot and the availability of funding. National City will also pursue 2005 JAG funding available through the State of California and will be monitoring homeland security funding opportunities this year and in future years. The City is considering applying to the following additional funding sources for the extension and completion of the greater project: State Homeland Security Grant Program (general funding), Law Enforcement Terrorists Prevention Program, Urban Area Security Initiative, Emergency Management Performance Grants, and Assistance to Firefighters. National City, CA Police Department Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Program Narrative Page 12 of 12 Budget Narrative TOTAL REQUEST: $52,823.00 Equipment Roosevelt Avenue and 8th Street • iPoint Digital Video Recorder: State of the art system that records DVD quality CCTV video onto hard disk. Images are watermarked and date/time stamped for use in prosecution at a later date. The DVR can record from multiple cameras at the same time, and transmit live image feeds over the City's existing Cisco IP data network. This allows the images from any live camera to be viewed by any authorized network attached PC. Supports 16 cameras and features Windows XP. o Quantity: 1 Unit Price: $7,044.87 Total Cost for Line Item: $7,044.87 • DSS UPS o Quantity: 1 Unit Price: $346.15 Total Cost for Line Item: $346.15 • Wireless CCTV Camera: Color, low light camera system, that allows day and night visual surveillance of a potential crime scene. The wireless nature of the camera allows it to be placed at remote locations such as a light pole. This provides great flexibility when choosing locations for CCTV surveillance. o Quantity: 3 Unit Price: $692.31 Total Cost for Line Item: $2,076.92 National City, CA Police Department Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Budget Narrative Page 1 of 5 • PTZ (Pan, Tilt, Zoom) Camera: This camera will allow a remote authorized operator, on the City's data network, to control the camera from his/her PC. They can view live images in real time, and instruct the camera to pan around a scene, and also zoom in to see detail. This feature will provide great flexibility in covering a wide area at the remote site, while also allowing a remote user to direct the camera to zoom in to obtain additional high -resolution detail, such as a suspect's facial features or vehicle registration. o Quantity: 1 Unit Price: $3,333.33 Total Cost for Line Item: $3,333.33 • AC-4Amp Weather-proof Power Supply o Quantity: 1 Unit Price: $205.13 Total Cost for Line Item: $205.13 Roosevelt Avenue and 8th Street —Opposite Corner • Wireless CCTV Camera: Color, low light camera system, that allows day and night visual surveillance of a potential crime scene. The wireless nature of the camera allows it to be placed at remote locations such as a light pole. This provides great flexibility when choosing locations for CCTV surveillance. o Quantity: 3 Unit Price: $692.31 Total Cost for Line Item: $2,076.92 • PTZ (Pan, Tilt, Zoom) Camera: This camera will allow a remote authorized operator, on the City's data network, to control the camera from his/her PC. They can view live images in real time, and instruct the camera to pan around a scene, and also zoom in to National City, CA Police Department Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Budget Narrative Page 2 of 5 see detail. This feature will provide great flexibility in covering a wide area at the remote site, while also allowing a remote user to direct the camera to zoom in to obtain additional high -resolution detail, such as a suspect's facial features or vehicle registration. o Quantity: 1 Unit Price: $3,333.33 Total Cost for Line Item: $3,333.33 • AC-4Amp Weather-proof Power Supply o Quantity: 1 Unit Price: $205.13 Total Cost for Line Item: $205.13 • FalconPLUS 5.8GHz System: 1 VTX5900 5.8 GHz Transmitter (Tx), 1 VRX5900 5.8 GHz Receiver (Rx), 1 AD5900-15-RP dBi Patch Antenna (Tx), 1 AD5900-15-R 15 dBi Patch Antenna (Rx), 2 Power Adapters (7VDC/800 mA) Mounting brackets o Quantity: 4 Unit Price: $3,846.15 Total Cost for Line Item: $15,384.62 • 900 MHz Digital Spread Spectrum PTZ Point -to -Point Control o Quantity: 2 Unit Price: $1,245.42 Total Cost for Line Item: $2,490.85 • Omni Antenna-900m (head end) o Quantity: 1 Unit Price: $192.31 Total Cost for Line Item: $192.31 • Yagi Antenna-900m (camera) o Quantity: 1 Unit Price: $363.24 Total Cost for Line Item: $363.24 National City, CA Police Depai(inent Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Budget Narrative Page 3 of 5 Miscellaneous Equipment • Hardware and Cabling o Quantity: 1 Unit Price: $1,282.05 Total Cost for Line Item: $1,282.05 • Rental Lift Truck o Quantity: 1 Unit Price: $641.03 Total Cost for Line Item: $641.03 Consultants • Technology Consulting o $7,689.02 Administrative Costs • Administrative: Administering JAG funds o 5% of grant request: $2,515 Other Costs • Additional 1-Year Warranty/Extended Maintenance: 16-Port annual maintenance after the first year fees that cover all hardware and software updates (drives, system boards, etc.) o Quantity: 1 Unit Price: $576.92 Total Cost for Line Item: $576.92 • Sales Tax National City, CA Police Department Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Budget Narrative Page 4 of 5 0 7.75%: $3,065.34 National City, CA Police Department Network -Enabled Wireless CCTV System for Criminal Activity Surveillance —Phase 1 2005 JAG Local Solicitation response due March 31, 2005: Budget Narrative Page 5 of 5 City of National City, California COUNCIL AGENDA STATEMENT MEETING DATES July 19, 2005 AGENDA ITEM NO. 32 /TEM TITLE Disposition of Old Library Surplus Property PREPARED BY Lin Wurbs -� DEPARTMENT 336-4240 EXPLANATION 2 Asst. City Manager Attached is a formal request from the Friends of the Library to be able to have the furnishings at the old Library which they would auction off and retain the proceeds from the "sale" for the benefit of the programs sponsored by the Friends of the Library. This request would be after any needs of any City Departments. The City Manager has also received requests by our Sister City of Tecate and the City of Rosarito Beach through the Mayor and City Council office to utilize the library equipment and furnishings (and any other surplus property that may be available) after the requirements of City Departments have been met. The existing policy that is in place provides first for City needs to be met and next for items to be offered to local non -profits and lastly for the items to be auctioned by the City though the Purchasing Department. Therefore, the City Council would need to waive the existing policy to provide for the opportunity for items to go to either Tecate or Rosarito Beach. Environmental Review ✓ N/A Financial Statement N/A Account No. N/A STAFF RECOMMENDATION The City Manager recommends waiving the policy and providing the opportunity for our Sister City of Tecate and the City of Rosarito Beach to have access to be al- lowed to have the items, after the needs of the City Departments have been met. Any items not utilized by our Sister City of Tecate or the City of Rosarito Beach for a library would then be provided to the Friends of the Library for auction. BOARD / COMMISSION RECOMMENDATION ATTACHMENTS ( Listed Below) Resolution No. 1. Letter from the Friends ofthe Library A-200 (9/80) Friends of the N board o Preeiderrt Gloria D1rd Secretary Myrtle Ruderill Director Weld Head Director Maxine Clark at!onai City Library f Directors Vice Pree'dent Connie Vlckera Treasurer Cecilia brewer Director Norma Magelore Director Chrleta Hauotedt 200 Eae-t Twelfth Street, National City, CA 91950 Phone 619-356-4350 nclibraryfrlende.org May 11, 2005 Dear Mayor and Councilmembers, The Friends of the National City Library have worked for 8 years to secure our community's dream of a new library building. We are so excited to see the new library close to completion, and we look forward to helping to host the community celebration for the library's grand opening! We are writing to formally request that the City Council donate to the Friends of the National City Library the furnishings and equipment that will be declared surplus property from the old Library. As a local 501(c)(3), the Friends are eligible, under City Council Policy #115, to request surplus property. It would be the intention of the Friends to auction the surplus property, with the proceeds used to support library children's programs and collections. City property tax and revenue purchased the library furniture and equipment, and should the City Council approve our request, the funds realized from the auction will continue to support the library and its programs. We have attached a formal "Request for Donation Form", but would be happy to have the opportunity to discuss this proposal with you. As the President of the Friends, I can arrange for our Board to meet with you at your convenience. I can be reached at (619) 477-5682. I look forward to hearing from you. Sincerely, Gloria Bird President Friends of the National City Library REQUEST FOR DONATION FORM Local, non -Profit `50IC3' organizations may request donations of surplus City property or Police Department unclaimed property in accordance with Council Policy 4115, and requirements of this form, Requirements: The non-profit organization must be able to provide: • proof of official non-profit '501C3' status (see back). • proof of a current National City Business License (see back). • proof of physical location/address within National City's city limits (see back). • their own vehicles and labor to claim the items (see back). • this form, complete and legible, with above documents attached. Surplus/UncIaimed Property Disclaimer: City property is usually dclared `surplus' tvhen it's broken, damaged, too costly to repair, or no longer • needed by the City. Unclaimed property may contain items of various descriptions and quality. Availability, quality and functionality of any of these items cannot be, and is not, guaranteed. Return Policy: All donations are final. The City cannot accept return of unwanted items. Requestor (please print): drganizationName: Fr; pnKlq of the National City Public Library Address:200 East 1 2th Street National City, CA. 91950 Contact Name/Requestor: Gloria Bird, President Phone: (619 ) 4 7'y _ 5 6 R 2 Email Address: sabbyb1.925@cnx npt Items you arc interested in obtaining: X DesksCbairs X File Cabinets X_Tables X Bookcases k Computer Equip X Misc. Office_Eg ip, �3� le x__ Other: Please specify: Contents of Library at UU East—l-lt�.i gtreet Verification / Authorization (see back): Registered on GuideStar: Yes X City Business License: 'Yes X Non -Profit, '501C3' status: Yes x Local organization: Yew Purchasing Department Authorization: Fax: (619 ) 336-4368 No Proo£'print out attached? Yes X No No Copy Attached? Yes X No No_ Proof/copy attached? Yes X No No _ Proof of address attached? Yeses No_ Date: Release of Liability: The undersigned hereby certifies that he or she is authorized to sign this document on behalf of the requesting agency, and that the requesting agency thereby agrees to indemnify and hold harmless, and at its own risk, cost and expense, defend the City, its officers, agents and employees from and against any and all liability, loss or expense to persons or property, including defense costs, legal fees, and claims for damages, arising out of, or related to, the access to or use of City property, including access to City facilities, and viewing, selection, removal, loading/unloading, or eventual use or transfer of donated/ surplus./unclaimed property by the requesting agency and any person using, operating or handling that property. The requesting agency further certifies that no guarantees or representations have been made regarding the donated surplus/unclaimed property requested, and as a condition of its transfer from the City thereby waives any and all claims that it may ever have against the City arising from the use or operation of the donated/surplus/unclaimed property. • Requestor Signature: r'' uy T. � Date: 0 5/ 1 1/ 2 0 0 5 Gloria Bird 1 5:H:Fo:ms:Rgst-bun 420,04 GuideStar - Search - Search Results FRIENDS OF THE NATIONAL CITY LIBRARY ... Page 1 of 1 GuideStar EZ Basic Information GuideStar Plus Summary GuideStar Products Salary Search Compensation Report Grant Explorer Funders Charity Check Analyst Report Data Services G4G GS Pro Want to learn more about this organization? LIBRARY 200 E 12th National City, CA 91950 FRIENDS OF THE NATIONAL CITY UpdAte This Report EIN: 95-3806954 This organization is not required to file an annual return with the IRS because its income is less than $25,000. It is a 501(c)(03) public charity. Back to Top • As a condition of using this site, you agree to follow GuideStar's policies, including the stipulation that the GuideStar site is for personal, informational use only. Any other use, including resale of the information or use for commercial gain, is prohibited, except in accordance with a GuideStar licensing agreement. Home I About Us I Contact Us I Site Map I Glossary I Help Desk I Update This Report I Log In GuideStar is the registered trademark and operating name of Philanthropic Research, Inc., a 501(c)(3) nonprofit organization. Copyright 2005, Philanthropic Research, Inc. All Rights. Reserved. http://www.guidestar.org/controller/searchResults.gs?action_gsReport=l &npoId=564543 5/10/2005 CITY OF NATIONAL e PURSt1ANT im TO CITY ORDINANCETHIS LICENSE'i84 '6 „2 HEREBY GRANTED FOR'THE TERM & ?TED DBA jsr Location FRIENDS f-QF THE NAT:' Classification 200:,E :12TH :ST Mail to t' .... :. - - 9 - {. sue,,. ,�;= n'Yi�•�lM ] '. J c z,� e k-: •.,FRIENDS. • OF SHE;; NAT i L TTY � �p 200 E 2 H STREET "' kz� a#'R -, CITY'i:,10E SE ELECTOR ' NATIONAL`.. CITY','.':.` CA 9195d` J C :.a THIS LICENSE TO BE. POSTED•,• IN A CONSPICUOUS PLACE AT BUSINESS LOCATION This is your business license for the year 2005 Please detach and display YOUR NATIONAL CITY BUSINESS LICENSE.WILL EXPIRE ON DECEMBER 31, 2005 IF YOU HAVE ANY QUESTIONS REGARDING YOUR 2005 CITY OF NATIONAL CITY BUSINESS LICENSE PLEASE CALL 619-336-4330 FRIENDS OF THE NAT'L CITY 200 E 12TH STREET NATIONAL CITY, CA 91950 internal Kevenue Service DiStriict Director . Department of the Treasury Date: An 0 7 198 'Friends of the National City Library 441 East 7th Street National City, CA. 92050 Dear Applicant: Employer Identification Number 95-3806954 Accounting Period Ending: June 30 Form 990 Required: ® yes Person to Contact: I. Hill Contact Telephone Number. (213) 688-4889 -Based on information supplied, and assuming your operations will be as stated in your application for recognition of exemption, we have determined you are exempt from Federal income tax under section 501(c)(3) of the Internal Revenue Code. We have further•determined that you are not a private foundation within the meaning of section 509(a) of the Code, because you are an organization described in section 509(a)(2). _ . If your sources of support, or yourpurposes, character, or method of operation change, .please let us know so we can consider the effect of the change on your exempt status and foundation status. Also, you should inform us of all changes in your nameor address. Generally, you are not liable for social security (FICA) taxes unless you file a waiver of exemption certificate as provided in the Federal Insurance Contributions Act. If you have paid FICA taxes without filing the waiver, you should contact us. You are not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA). Since you are not a private foundation, you are not subject to the excise taxes under Chapter 42 of the Code. However, you are not automatically exempt from other Federal excise taxes. If you have any questions about excise, employment, or other Federal taxes, please let us know. Donors may deduct contributions to you as provided in section 170 of the Code. Bequests, .legacies, devises, transfers, or gifts to you or for your use are deductible for Federal estate and gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of the Code. The box checked in the heading of this letter shows whether you must file Form 990, Return of Organization Exempt from Income tax. * ereprtre, ;�T-.,, :- - hecke you a otas acednt o1esis th b3tga' a y 1E*If a return is required, it must be filed by the 15th day of of the fifth monafter the end of your annual accounting period. The law imposes a penalty of $10 a day, up to a maximum of $5,000, when a return is filed late, `unless there is reasonable cause for the delay. ?.O. Box 2350, Los Angeles, Calif. 90053 ov.o Letter947(DO)(5-77) You are not required to file Federal income tax returns unless you are subject to the tax on unrelated business income under section 511 of the Code. If you are subject to this tax, you must file'an income tax return on Form 990-T. In this letter, we are not determining whether any of your present or proposed activities are unrelated trade or business as defined in section 513 of the Code.. You need an employer identification number even if you have no employees. • • If an.employer identification number. was not entered on your application, a number will be assigned to you and you will be advised of it. Please use that number on all returns you file and in all correspondence with the Internal Revenue Service. Because this letter could help resolve any questions about your exempt status . and foundation status, you should keep it in your permanent' records. If you have any questions, please contact the person whose name and telephone number are shown in the heading of this letter. Sincerely yours, District Director ** For tax years ending on and after December 31, 1982, organizations whose gross receipts are not normally more tha are excused from filing Form 990. For guidance in determining if your gross receipts, are "normally" more than the $25, 000 limit, see the instructions for the Form 990. Letter 947(d0) (5-77) STATE nG CA! '�,:,RNi A. FRANCHISE TAX, BOARD SACRAMENTO CAL 1roRN!c• 95Bc•7 September 13. 1982 In reply refer to 342:EM:rk:g Friends of the National City Library Attention: Helen G. Lamb • 441 East Seventh Street National City, CA 92050 Purpose : Charitable Form of Organization : Corporation Accounting Period Ending: June 30 Organization Number • 1100164 On the basis of the information submitted and provided your present operations continue unchanged or conform to those proposed in your application, you are exempt from state franchise oz income tax under Section 23701d, Revenue and Taxation Code. Any change in operation, character or purpose of the organization must be reported immediately to this office so that we may determine the effect on your exempt status. Any change of name or address also must be reported. You are required to file Form 199 (Exempt Organization Annual Information Return) or Form 199E (Exempt Organization Annual Information Statement) on or before the 15th day of the 5th month (4 1/2 months) after the close of your accounting period. See annual instructions with forms for requirements., You are not required to file state franchise or income tax returns unless you have income subject to the unrelated business income tax under Section 23731 of the Code. In this event, you are required to file Form 109 (Exempt Organization Business Income Tax Return) by the 15th day of the 5th month (4 1/2 months) after the close of your annual accounting period. If the organization is incorporating, this approval will expire unless incorporation is completed with the Secretary of State within 60 days. Exemptions ;::m federal income or. other taxes and other state taxes requires separate applications. This exemption effective as of December 24, 1981. J. Kudo, Supervisor Exempt Organizations Telephone (800) 852-5711 cc: Registrar of Charitable.Trusts • MEETING DATE July 19, 2005 ITEM TITLE MEDALLIONS City of National City, California COUNCIL AGENDA STATEMENT 33 AGENDA ITEM NO. CONSIDERATION OF ISSUANCE OF ADDITIONAL TAXICAB PERMITS AND PREPARED BY George H. Eiser, III - DEPARTMENT City Attorney (Ext. 4221) EXPLANATION The City has recently completed a successful transition of the taxicab administration function from MTDB to the City. All of the taxicab operators formerly licensed with MTDB — Yellow Cab, Red Cab, and USA Cab — have received National City permits. All except Yellow Cab have been issued the maximum number of medallions to which they are entitled. No additional permits or medallions may be issued without the authorization of the City Council. The maximum number of medallions currently authorized by the City Council is 65. Taxicab companies other than the three currently licensed by the City have expressed interest in obtaining a National City permit. The City Council has expressed interest in the past in increasing the number of authorized permits. The Council may wish to consider establishing a procedure for granting additional permits and medallions, e.g. RFP or RFQ process, or may authorize additional permits and medallions to be issued simply upon submittal of an application and payment of fees. Environmental Review Financial Statement The amount of fees collected offsets the costs of administration. Account No. STAFF RECOMMENDATION Provide direction to staff. BOARD 1 "CO IM SSiON RE: Cfl'IMIAEN':DAT1DN N/A ATTACHMENTS f Listed 3elow ) N/A Resolution No. A-200 (9/80) ' ea(21.i Y4 3737 Fifth Avenue, Suite 203 • San Diego, CA 92103 • (619) 542-18 Tax ID Number 33-0215585 • www.ALPHAPROJECT.c ITEM # 34 7/19/05 NATIONAL CITY PROGRESS REPORT June 1, 2005 - July 1, 2005 The mission of the Alpha Project is to empower individuals, families, and communities by providing work, recovery and support services to people who are motivated to change their lives and achieve self-sufficiency. Since October, 2004, Alpha Project has been working in National City providing outreach services to the City's growing homeless population. Alpha Project's Take Back the Street Program provides the City of National City outreach and community services one day out of the week with a crew of three persons and one supervisor. Alpha Project's TBS program has assisted with homeless mitigation in National City with referrals, weed abatement, clearing homeless camps, outreach, and tree skirting or removal of trees and debris. Since the inception of the program, Alpha Project has been providing walking patrols in Kimball Park twice a day once, in the morning and in the afternoon. To date, Alpha Project has provided community revitalization/cleanup and outreach at the below sites. 06-02-05 - cleaning of transients camps, weed and tree trimming, hauling debris to dump, • 1000 S. Euclid Ave. & Plaza Blvd., • 1870 E. Plaza Blvd., • Behind Toys R Us, 06-09-05 - cleaning up of transients camps, weed and tree trimming, cutting brush, hauling debris to dump, • Kimball Park Outreach, • 99 Cent Store, • Twin Towers Senior Center, • Highland and E. 8th Street, • Cleveland and Civic Center Drive, • Behind Toys R Us, • Behind Smart N Final, Behind Big Lots, • A-1 Alloys Recycling Center, 06-16-05 - cleaning up of transients camps, weed and tree trimming, hauling debris to dump, • Kimball Park Outreach, • Off Ramp of 54 and Highland Ave., To receive a tax deduction for your vehicle donation, please call (866) 4AP-2TOW. 06-23-05 - cleaning up of transients camps, weed and tree trimming, hauling debris to dump, • Kimball Park Outreach, • 99 Cent Store, • Smart N Final, • Big Lot's, • Behind Burger King, • Backside of In- Out Burger, • Cozinos Liquor, • Toy's R Us, 06-30-05 - cleaning up of transients camps, weed and tree trimming, hauling debris to dump, • Kimball Park Outreach, • Toys R US, • Ha Penny In, • Cleveland and Civic Center Dr., • Big Lots. This month Alpha Project has been to the aforementioned locations at least three times each and some locations more than three times. We have cleaned and removed approximately 7.84 net tons of homeless camps, trash and debris. We have trimmed and skirted 10 trees. Alpha Project has provided outreached to 4 homeless men, women, and teens ranging from 15 to 68 years of age. Alpha Project has housed 0 of those homeless people and offered services to all. About half of the homeless population that Alpha Project encounters in National City is from out of State. On average, contacts have been homeless from one day to 20 years. A portion of those people are on SSI, but refuse to get help. Approximately 75% of those offered services are on drugs and/or alcohol. Many collect cans and panhandle for money to buy food and support there drug or alcohol habit. The homeless of National City have been living underneath bridges, in the river beds, in the City's parks and recreation areas, flood water channels, churches, on -ramps, and in commercial and residential foliage. Alpha Project for the Homeless would like to thank the City of National City for the opportunity to collaborate with the City to provide meaningful solutions to its homeless dilemma. Of course, we could provide a more thorough outreach and community revitalization if we had more than one day a week to provide said services. * * Attached, you will fmd numerous pictures that have been taken within the City demonstrating our work. **Attachments may be viewed in the City Clerk's office. Karen Pucci, Community Projects Manager ITEM #35 7/19/05 NATIONAL • CITY • TRANSIT MONTHLY REPORT JULY-2005 Technology 1. Completion for the joint NC -MIS Department —NCT project for community messaging via electronic kiosk is anticipated within the next few months. 2. A joint NCT-NCPD Security camera project is being evaluated for placement of Real Time video cameras along a NCT bus route possibly within a few months. NCT is in the process of having various systems on display at the upcoming Public Safety Fair in September. 3. NCT is in the process of securing funding to install the new RCS radio system, which will improve overall NCT Communications especially in emergencies. If funding is approved we expect the system to be in operation by the end of August or early September 2005. 4. NCT recently purchased two (2) Qualcomm Globaistar GSP-1600 Satellite phones with case and vehicle battery chargers. They include purchased emergency plan coverage and are in "ready for use" mode without having to delay for an activation process which could take up to 24 hours from time of request. These phones are also available for loan to NCPD, NCFD or other NC Departments without charge as a resource in the event of an emergency and will boost NCT communication capability to emergency operation centers regardless of local cell capabilities, which would probably be reduced in the event of terrorist incidents due to high call volume. Ridership: JUNE-04 MAY 05 JUNE-05 Ridership : 139,397 141,825 140,777 Passengers per mi. 3.37 3.68 3.62 Passengers per hr. 39.53 41.69 40.56 Revenue miles: 41,405 38,536 38,849 Revenue Hours: 3,526 3,402 3,471 Road Calls 09 04 04 Accidents 02 00 00 Lift deployments N/A 552 560 Our on -time performance 89.0% 92.5% 95.0% 522 West 8th St. • National City, California 91950-1004 • (619) 474-7505 Fax (619) 474-2058 McDonald Transit Associates. inc., Contract Operator for NOT 1 Maintenance: NCT Revenue vehicles used 12,719 gallons of low sulfur diesel fuel. Our average cost per gallon was $1.836 per gallon in June: NCT maintenance personnel performed 12 Preventative Maintenance Inspections (PMI's) and made 47 minor repairs consisting of rear door, radio, graffiti, decals, and engine adjustments. We also made 14 major repairs consisting of transmission, seals, oil leaks, and AC units to our fleet vehicles in April. Route Development & Marketing: NCT trailers were used to distribute NC and MTS system and schedule information at the following events in National City: June 3rd June 11th June 11th June 12th June 12th June 13th June 25th Youth/Safe Summer Slam -Operation Samahan, 30th & Highland Ave Philippine Faire-Kimball Park St. Anthony of Padua Festival, Harding Ave & 18th St. Philippine Faire-Kimball Park St. Anthony of Padua Festival, Harding Ave & 18th St. Save the children event, 1520 Plaza Blvd. Community/Youth event -Turning the Hearts Center, 1920 Sweetwater Road. * Pictures of trailer events are available if desired 3 :00pm-6:00pm 9:00am-5:00pm 10:00am-8:00pm 9:OOam-5.:00pm 8:OOam-4:00pm 4:00pm-9:O0pm 9:00am-9:00pm The total trailer hours at events for June was approximately Fifty-four (54) not including staff setup and take down and in many instances we utilized unpaid volunteers from NCT or various organizations to staff them. We will be utilizing these trailers at as many NC special events as possible and these trailers are available at no charge to NC Departments and organizations. Bus Stop Amenities: NCT is continuing to evaluate art projects involving special benches for bus stops and a possible mural on our facility facing the Blue Line Trolley line. These two projects were discussed at recent NC Art Committee meetings and are under discussion. NCT is continuing to evaluate our bus stops for future bench placements as they become available later this year and also possible shelter Locations if funding becomes available as these were rated very desirable by residents in the recent survey conducted by "Competitive Edge." Administration & Community Collaboration NCT participates and is a member of many standing Transportation Committees at MTDB and SANDAG such as the. Transit Services and Facilities Committee (TSFC), Operators Advisory Committee (OAC), Capital Improvement Plan (CIP), Uniform Fare Working Group, Security Critical Incident Committee (SCIC), Transit Research Working Group, Accessible Services Advisory Committee (ASAC), and South County EDC Transportation Committee. On June 27te & 28th two (2) administrative staff and myself attended a Grant Seminar sponsored by the Joint Interagency Training Center -West (JITC-Field office for San Diego National Guard) and presented by Grantwriting USA. This seminar gave in depth instruction on how to seek, write, and apply for funding Grants from Public and Private agencies including Foundations. NCT will evaluate all opportunities to secure funding for future transit related projects and equipment as available. NCT is a member of the California Transit Association (C.T.A) and the American Public Transit Association (A.P.T.A.) and is an active advocate for Regional and National Transit related issues. NCT staff directly participates on the NC Chamber of Commerce Community Promotions, Military Affairs, Business/Education and Public Safety Committees and I have been elected Chamber President until February 2006 and I am also a participant on the newly established NCPD Chief of Police advisory committee as well as the NCPD safety camera procedures and policies committee. NCT is also committed to working with the National City Community and residents through direct participation in Community projects and organizations as volunteers or sponsors. NCT is also willing to evaluate, and assist whenever possible to help meet the transportation needs of NC departments and organizations on a case -by -case basis for special or annual events. Submitted: Ju 11, 2005 John P. Webster Sr. Vice President -General Manager National City Transit 160,000 155,000 150,000 145,000 140,000 135,000 130,000 125,000 120,000 115,000 TOTAL RIDERSHIP * Dec-04 ® Jan-05 ❑ Feb-05 ❑Mar-05 ® Apr-05 ® May-05 ® Jun-05 • I ae JOM eter a career as a Fir ightel? THINKING ABOUT A CAREER CHANGE? EVER WONDERED WHAT IT WOULD TAKE TO BE A FIREFIGHTER? WANT TO LEARN MORE ABOUT AN EXCITING CAREER IN THE FIRE SERVICE? WELL, LOOK NO MORE! NATIONAL CITY RESIDENTS AND BILINGUAL SPEAKERS (SPANISH, TAGALOG) ARE DESIRABLE. (EOE) EQUAL OPPORTUNITY EMPLOYER. TO LEARN MORE ABOUT THE NATIONAL CITY FIRE DEPARTMENT CAREER INFORMATION DAY OR TO DOWNLOAD THE FIREFIGHTER BROCHURE PLEASE VISIT OUR WEESITE : www.ci.national-city.ca.us PLEASE RSVP (619) 336-4271 OR E-MAIL personnel Thci.national-city.ca.us LEARN ABOUT THE PROCESS OF BECOMING A FIREFIGHTER LEARN ABOUT REQUIREMENTS AND QUALIFICATIONS HANDS ON! TRY OUT SOME OF THE EQUIPMENT! MEET AND GREET WITH THE NATIONAL CITY FIRE CHIEF AND FIREFIGHTERS WHEN: SAT, JUNE 18, 2005 8AM TO NOON WHERE: MLK JR. COMMUNITY CENTER, 140 E. 12th STREET NATIONAL CITY, CA 91950 ONAL • CITY •TRANSIT MONTHLY REPORT JULY-2005 Technology 1. Completion for the joint NC -MIS Department —NCT project for community messaging via electronic kiosLis anticipated within the next few months. 2. A joint NCT-N' PD Security camera project is being evaluated for placement of Real Time video cameras along t NCT bus route possibly within a few months. NCT is in the process of having various systems, on display at the upcoming Public Safety Fair in September. 3. NCT is in the process of securing funding to install the new RCS radio system, which will improve overall NCT C;rmmunications especially in emergencies. If funding is approved we expect the system to be in operation by the end of August or early September 2005. 4. NCT recently purchased two (2) Qualcomm Globalstar GSP-1600 Satellite phones with case and vehicle battery chargers. They include purchased emergency plan coverage and are in "ready for use" mode wit- out having to delay for an activation process which could take up to 24 hours from time of request. These phones are also available for loan to NCPD, NCFD or other NC Departments vo- ithout charge as a resource in the event of an emergency and will boost NCT communicatioPrt capability to emergency operation centers regardless of local cell capabilities, which would probably be reduced in the event of terrorist incidents due to high call volume. Ridership: JUNE-04 MAY 05 JUNE-05 Ridership : 139,397 141,825 140,777 Passengers per mi. 3.37 3.68 3.62 Passengers per hr. 39.53 41.69 40.56 Revenue miles. 41,405 38,536 38,849 Revenue Hour€,: 3,526 3,402 3,471 Road Calls 09 04 04 Accidents 02 00 00 Lift deployments N/A 552 560 Our on -time performance 89.0% 92.5% 95.0% 522' SthE National City, California 91950- 1004 ° (6 1 9) 474- 505 Fax (619) 4�i 4.2058 Wes „St.. ratio a E6 , Ca � ,_.. NCT Transit Assc: sates. Inc., Contract Operator for NCT 1 Maintenance: NCT Revenue vehicles used 12,719 gallons of low sulfur diesel fuel. Our average cost per gallon was $1.836 per gallon in June. NCT maintenance personnel performed 1.2 Preventative Maintenance Inspections (PMI's) and made 47 minor repairs consisting of rear door, radio, graffiti, decals, and engine adjustments. We also made 14 major repairs consisting of transmission, seals, oil leaks, and AC units to our fleet vehicles in April. Route Development & Marketing: NCT trailers were used to distribute NC and MTS system and schedule information at the following events in National City: June 3rd June 11th June 11th June 12th June 12th June 13th June 25th Youth/Safe Summer Slam -Operation Samahan, 30th & Highland Ave Philippine Faire-Kimball Park St. Anthony of Padua Festival, Harding Ave & 18th St. Philippine Faire-Kimball Park St. Anthony of Padua Festival, Harding Ave & 18th St. Save the children event, 1520 Plaza Blvd. Community/Youth event -Turning the Hearts Center, 1920 Sweetwater Road. * Pictures of trailer events are available if desired 3:00pm-6:00pm 9:OOam-5:00pm 10:OOam-8:00pm 9:00am-5:00pm 8:OOam-4:OOpm 4:00pm-9:OOpm 9:OOam-9:OOpm I'he total trailer hours at events for June was approximately Fifty-four (54) not including staff setup and take down and in many instances we utilized unpaid volunteers from NCT or various organizations to staff them. We will be utilizing these trailers at as many NC special events as possible and these trailers are available at no charge to NC Departments and organizations. Bus Stop Amenities: NCT is continuing to evaluate art projects involving special benches for bus stops and a possible mural on our facility facing the Blue Line Trolley line. These two projects were discussed at recent NC Art Committee meetings and are under discussion. NCT is continuing to evaluate our bus stops for future bench placements as they become available later this year and also possible shelter locations if funding becomes available as these were rated very desirable by residents in the recent survey conducted by "Competitive Edge." Administration & Community Collaboration NCT participates and is a member of many standing Transportation Committees at MTDB and SANDAG such as the Transit Services and Facilities Committee (TSFC), Operators Advisory Committee (OAC), Capital Improvement Plan (CIP), Uniform Fare Working Group, Security Critical Incident Committee (SCIC), Transit Research Working Group, Accessible Services Advisory Committee (ASAC), nd South County EDC Transportation Committee. On June 27tn & 28th two (2) administrative staff and myself attended a Grant Seminar sponsored by the Joint Interagency Training Center -West @ITC -Field office for San Diego National Guard) and presented by Grantwriting USA. This seminar gave in depth instruction on how to seek, write, and apply for funding Grants from Public and Private agencies including Foundations. NCT will evaluate all opportunities to secure funding for future transit related projects and equipment as available. NCT is a member of the California Transit Association (C.T.A) and the American Public Transit Association (A.P.T.A.) and is an active advocate for Regional and National Transit related issues. NCT staff directly participates on the NC Chamber of Commerce Community Promotions, Military Affairs, Business/Education and Public Safety Committees and I have been elected Chamber President until February 2006 and I am also a participant on the newly established NCPD Chief of Police advisory committee as well as the NCPD safety camera procedures and policies committee. NCT is also committed to working with the National City Community and residents through direct participation in Community projects and organizations as volunteers or sponsors. NCT is also willing to evaluate, and assist whenever possible to help meet the transportation needs of NC departments and organizations on a case -by -case basis for special or annual events. Submitted: Jubc 11, 2005 John P. Webster Sr. _.- Vice President -General Manager National City Transit 3 160,000 155,000 150,000 145,000 140,000 135,000 130,000 125,000 120,000 115,000 TOTAL RIDERSHIP ■Dec-04 ■Jan-05 ❑Feb-05 ❑Mar-05 ■Apr-05 ■May-05 ■Jun-05 Na I At CI I E EPAR C ' ER INFO ' ION AND RECRVIMEN DAY Nave you ever cosider a any as a Freflght& EVER WONDERED WHAT PT WOULD TAKE TO BE A FIREFIGHTER? WANT TO LEARN MORE ABOUT AN EXCITING CAREER IN THE FIRE SERVICE? WELL, LOOK NO MORE! NATIONAL CITY RESIDENTS AND BILINGUAL SPEAKERS (SPANISH, TAGALOG) ARE DESIRABLE. (EOE) EQUAL OPPORTUNITY EMPLOYER. TO LEARN MORE ABOUT THE NATIONAL CITY FIRE DEPARTMENT CAREER INFORMATION DAY OR TO DOWNLOAD THE FIREFIGHTER BROCHURE PLEASE VISIT OUR WEBSITE : www.ci.national-city.ca.us PLEASE RSVP (615) 336-4271 OR E-MAIL personnel c ci.natioraI-city.ca.us LEARN ABOUT THE PROCESS OF BECOMING A FIREFIGHTER LEARN ABOUT REQUIREMENTS AND QUALIFICATIONS HANDS ON! TRY OUT SOME OF THE EQUIPMENT! MEET AND GREET WITH THE NATIONAL CITY ARE CHIEF AND FIREFIGHTERS WHEN: SAT, JUNE 18, 2005 8AM TO NOON WHERE: MLK JR. COMMUNITY CENTER, 140 E. 12th STREET NATIONAL CITY, CA 91950 DIANNE FEINSTEIN CALIFORNIA United t*tates tenate WASHINGTON, DC 20510-0504 http://feinstein.senate.gov June 15, 2005 Mr. Chris Zapata City Manager City of National City 1243 National City Blvd. National City, CA 91950-4302 COMMITTEE ON APPROPRIATIONS COMMITTEE ON ENERGY AND NATURAL RESOURCES COMMITTEE ON THE JUDICIARY COMMITTEE ON RULES AND ADMINISTRATION SELECT COMMITTEE ON INTELLIGENCE ITEM #36 7/19/05 Dear Mr. Zapata: I wanted to write and congratulate the City of National City on receiving an Edward Byrne Memorial Justice Assistance Grant from the U.S. Department of Justice. The Federal grant process is highly competitive and draws numerous applicants from all over the country. I'm glad that you have been successful in your efforts. Please know that my office stands ready to assist you in the grant process. If you experience any difficulties receiving your funding, please feel free to contact my office regarding your situation. Likewise, I hope you will seek my assistance in your future grant efforts. My staff member who deals specifically with this issue is John Replogle, and he can be reached at (202) 224-3841. Again, congratulations and I wish you the best in your future efforts. DF: jr Sincerely yours, Dianne Feinstein United States Senator • TO: Mayor and City Council FROM: City Attorney SUBJECT: Off -Agenda Items for July 19, 2005 EXHIBIT 'A' DATE: July 19, 2005 The Executive Director of the CDC has requested that four items pertaining to the levy of annual assessment for two assessment districts be added to the agenda. The two assessment districts — Landscape Maintenance District No. 1 (Mile of Cars), and the Downtown National City Property Business Improvement District were formed pursuant to the Landscaping and Lighting Act of 1972. The Act requires that an Assessment Engineer prepare a report describing the plans and specifications for improvements within the district, an estimate of the cost of the improvements, a diagram for the assessment district, and an assessment of the estimated costsof the improvements. After approving the Engineer's .report, the Council must schedule a hearing to consider the proposed assessments, and to hear any protests. If the assessments are approved by the City Council, a resolution of approval must be filed with the County Auditor by August 15, 2005. Due to the August 15 deadline and the noticing requirements for the public hearing, the City Council must, approve the .Engineer's Report, and schedule an August 2 hearing, at this evening's meeting. These matters may be added to the agenda :upon a motion, approved by a 4/5 vote, that the need to take action arose after the agenda was posted. If this motion is approved, the Council will be asked to approve the following resolutions: Landscape Maintenance District No. 1 (Mile of Cars) 1. RESOLUTION APPROVING` THE ASSESSMENT ENGINEER'S REPORT FOR PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS WITHIN A SPECIAL MAINTENANCE DISTRICT 2. RESOLUTION DECLARING ITS INTENTION TO PROVIDE FOR AN ANNUAL LEVY AND COLLECTION OF ASSESSMENTS IN A SPECIAL MAINTENANCE DISTRICT, AND SETTING A TIME AND PLACE FOR PUBLIC MEETING AND A PUBLIC HEARING THEREON EXHIBIT 'A' Downtown National City Property Business Improvement District 1. RESOLUTION APPROVING THE ASSESSMENT ENGINEER'S REPORT FOR PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS WITHIN A SPECIAL MAINTENANCE DISTRICT 2. RESOLUTION DECLARING ITS INTENTION TO PROVIDE FOR AN ANNUAL LEVY AND COLLECTION OF ASSESSMENTS IN A SPECIAL MAINTENANCE DISTRICT, AND SETTING A TIME AND PLACE FOR PUBLIC MEETING AND A PUBLIC HEARING THEREON GEORGE H. EISER, III GHE/gmo City Attorney City of National City COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2005 AGENDA ITEM NO. ITEM TITLE: RESOLUTION DECLARING COUNCIL IT'S INTENTION TO PROVIDE FOR AN ANNUAL LEVY AND COLLECTION OF ASSESSMENTS IN THE DOWNTOWN NATIONAL CITY PROPERTY BUSINESS IMPROVEMENT DISTRICT, AND SETTING A TIME AND PLACE FOR PUBLIC HEARING THEREON PREPARED BY: Benjamin Martinez Executive Director EXPLINATION: DEPARTMENT: Community Development Commission This resolution sets the time and place for the public hearing on the levying of the proposed assessment for the Down- town National City Property Business Improvement District per section 22624 of Landscaping and Lighting Act of 1972. The Public Hearing is scheduled for August 2nd at 6:OOpm in the Council Chambers at 1243 National City Boulevard, National City, CA 91950. The resolution provides for a mailing to all property owners proposed to be assessed notifying them of the public hear- ing, adoption of the Resolution of Intention, and the filing of the Engineer's Report contained in the Downtown National City Property Business Improvement District Management District Plan. Environmental Review: Financial Statement: N/A X N/A Aki STAFF RECOMMENDATION: Approve above -subject resolution BOARD/COMMISSION RECOMMENDATION: N/A ATTACHMENTS (Listed Below) Resolution No. 1. Downtown National City Property Business Improvement District Management District Plan. RESOLUTION NO. 2005- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY DECLARING ITS INTENTION TO PROVIDE FOR AN ANNUAL LEVY AND COLLECTION OF ASSESSMENTS IN DOWNTOWN NATIONAL CITY PROPERTY BUSINESS IMPROVEMENT DISTRICT, AND SETTING A TIME AND PLACE FOR PUBLIC MEETING AND A PUBLIC HEARING THEREON WHEREAS, the City Council of the City of National City, California, has previously formed a special maintenance district pursuant to the terms of the "Landscaping and Lighting Act of 1972", being Division 15, Part 2 of the Streets and Highways Code of the State of California (the 1972 Act), said special maintenance district known and designated as the Downtown National City Property Business Improvement District (hereinafter referred to as the "Maintenace District") and, WHEREAS, at this time the City Council is desirous to take proceedings to provide for the annual levy of assessments for the next ensuing fiscal year to provide for the annual costs for maintenance of improvements within the Maintenance District. WHEREAS, there has been presented and approved by this City the Assessment Engineer's Report ("Report"), as required by the 1972 and Article XIIID of the Constitution (Article XIIID"), and this City Council is desirous of continuing with the proceedings for said annual levy. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: RECITALS Section 1. The above recitals are all true and correct PROCEDURES Section 2. That the public interest and convenience requires, and it is the intention of this legislative body, to levy and collect assessments to pay the annual costs and expenses for the maintenance and/or servicing of the improvements for the above -referenced Maintenance District, said improvements generally described as set forth in the Engineers Report and Exhibit "A" and "B" attached hereto and incorporated herein by this reference. BOUNDARIES OF MAINTENANCE DISTRICT Section 3. That said works of improvement are of special benefit to the properties within the boundaries of said Maintenance District, which Maintenance District the legislative body previously declared to be the area specially benefited by said works of improvement, and for particulars, reference is made to the boundary map as previously approved by this legislative body, a copy of which is on file in the Office of the City Clerk and open for public inspection, and is designated by the name of this Maintenance District. REPORT OF ENGINEER Section 4. That the "Report" of the Engineer, as preliminary approved by this legislative body, is on file with the City Clerk and open for public inspection. Reference is made to said "Report" for a full and detailed description of the improvements to be maintained, the boundaries of the Maintenance District and any zones therein, and the proposed assessments upon assessable Lots and parcels of land within the Maintenance District. PUBLIC MEETING Section 5. NOTICE IS HEREBY GIVEN THAT A PUBLIC MEETING AND A PUBLIC HEARING ARE HEREBY SCHEDULED IN THE REGULAR MEE;IING PLACE OF THIS LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, CITY HALL, 1243 NATIONAL CITY BOULEVARD, NATIONAL CITY, CA, ON THE FOLLOWING DATES: A. PUBLIC MEETING: August 1, 2005 AT 4:OOPM B. PUBLIC HEARING: August 2, 2005 AT 6:OOPM ALL INTERESTED PERSONS SHALL BE AFORDED THE OPPORTUNITY TO HEAR AND BE HEARD. THE CITY COUNCIL SHALL CONSIDER. ALL ORAL STATEMENTS AND ALL WRII.1EN PROTESTS OR COMMUNICATIONS MADE OR FILED BY ANY INTERESTED PERSONS. PASSED AND ADOPIED this l9th day of July 2005. Nick Inzunza, Mayor Al JEST: Michael R. Dalla, City Clerk APPROVED AS TO FROM: George H. Eiser, III City Attorney NEW CITY AMERICA, INC. MARCO LI MANDRI, PRESDIENT * WWW.NEWCITYAMERICA.COM DOWNTOWN NATIONAL CITY PROPERTY BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN Formed Under California Streets and Highway Code Section 36600 Property Business Improvement District Act of 1994 FINAL PLAN SUBMITTED TO: THE DOWNTOWN NATIONAL CITY P.B.I.D. STEERING COMMITTEE THE CITY OF NATIONAL CITY COMMUNITY DEVELOPMENT COMMISSION EXECUTIVE DIRECTOR BEN MARTINEZ MAYOR NIC INZUNZA AND CITY COUNCIL MEMBERS LUIS NATIVIDAD, RON MORRISON, FRANCISCO PARRA AND ROSALIE ZARATE PRESENTED BY: MARCO LI MANDRI, NEW CITY AMERICA INC. APPROVED APRIL 30, 2004 DOWNTOWN NATIONAL CITY PROPERTY BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN FINAL PLAN- APRIL 30, 2004 TABLE OF CONTENTS L INTRODUCTION, EXECUTIVE SUMMARY II. ADDRESS SERIES, GENERAL STREET BOUNDARIES III. WORK PLAN AND BUDGET IV. ASSESSMENT METHODOLOGY TO FUND THE SPECIAL BENEFITS V. RELEVANT ENABLING LEGISLATION, AB 1021 VI. ENGINEER'S REPORT AND RELATIONSHIP BETWEEN ASSESSMENTS PAID AND SPECIAL SERVICES RECEIVED VII. DISTRICT GOVERNANCE APPENDIX A. MAP OF THE DISTRICT B. FIVE YEAR PROJECTION OF ASSESSMENTS C. LIST OF PARCELS INCLUDED IN DISTRICT D. CERTIFIED ENGINEER'S REPORT PART 1 EXECUTIVE SUMMARY DOWNTOWN NATIONAL CITY MANAGEMENT DISTRICT PLAN Statement of Purpose Over the past two years, the people of San Diego County have begun to see National City in a whole new light. Long identified with the extremely successful National City Mile of Cars, the City now has the distinct identify of a municipal corporation aggressively moving forward on a number of fronts. Whether it be the visionary Marina project, the development of Filipino Village, the beautification of Highland Avenue or the creation of the Education Village in Downtown National City, more things are happening in this City than almost anywhere else in the County. Under the leadership of the Mayor and City in a race to re- position it as a great City with bustling commerce, historic significance, a great urban forestry plan, strengthening of ethnic neighborhoods and experimenting with what makes Downtowns work in the 21 st Century. Led by a group of significant, small and long-time business and property owners, this effort to establish a Property Business Improvement District was initiated in March 2004. With great speed and tremendous commitment, it is the intent of this district to be established and generate its first revenues by the conclusion of calendar year 2004. Such an undertaking is unprecedented but reflects the seriousness of the effort of the Downtown stakeholders to redefine themselves to the surroundings region. With the growing state budget crisis in California and its resulting impact on the cities, it is safe to assume that current National City general benefit services delivered in the Downtown business district will not increase in the future. To make the Downtown district and community better, commercial and institutional property owners must look at new ways of funding special benefit services to clean up the district as well as promote the area. Such special benefit services could include bringing a new identity to the Downtown business district, funding new gateway signs to the district, regular sidewalk sweeping, sidewalk steam cleaning, removal of bulky items, trash receptacle emptying, providing private security services above and beyond that of the National City Police Department aiding in the coordination of homeless intervention services, proposing solutions to parking problems, initiating beautification programs, tree planting and maintenance, coming up with new marketing and promotions programs, defining greater visual linkages to the 8th Street Trolley stop as well as serving as an advocacy group of business and property owners. This proposed Downtown National City PBID or special benefits district would be funded through an assessment levied on each and every parcel in the finalized and approved boundaries in Downtown. Affected property owners have determined the exact costs of funding these special benefit services. All properties, public and private, would be included in this new assessment district. In early April, a survey was mailed to every property owner within the initial study area. The area included all parcels on National City Blvd. between 2nd Street on north, 12th Street on the south, and long 8th Street from the Trolley Stop on the west to E Avenue on the east. There are 153 parcels in the proposed district, represented by 96 property owners. The district is approximately 34 square blocks. The database compiled by New City America, Inc. reveals the following data that would create the material basis for the appointment of assessments throughout the district: o 1,489,289 square feet in total lot size; o 446, 214 square feet in total building size; o 22,175 linear feet in total frontage The survey results were quite stunning. The results of the survey were as follows: NUMBER OF RESPONSES: Respondents represented the following property variables: Lot size: Building size. Linear Frontage 522,523 square feet or 35% of the total 240,713 square feet or 54% of the total 8,248 linear feet or 37% of the total Of those who responded to the survey, the following respondents, (by weight) demonstrated their support for creation of the PBID: Responses from Property Owners Who Returned PBID Survey Response Lot Size Building Size Linear Frontage Support Formation 76% 88% 77% appose Formation 24% 1 2% 23% Of those who responded, the following represent support of specific special benefits funded by the PBID: ➢ 61 % had owned their property for 9 years or less; ➢ 73% were sole proprietorship or family owned properties ➢ 52% believed that National City had been portrayed negatively by the major media in the last few years; ➢ 84% believed that Downtown was unsafe or "safe, however suffers an image as an unsafe district;" ➢ 54% would support property owners funded special benefit security services; ➢ 54% feel their customers would not feel safe walking from the corner of 8th and National City Blvd. and the trolley Stop; ➢ 64% would support initiation of property owner funded regular sidewalk/gutter sweeping and steam cleaning services; ➢ 70% support property owner funded special events to improve the identity of Downtown; Based upon this level of support, the Downtown National City PBID Steering Committee is presenting the following to all Downtown Property Owners for their consideration: PROPERTY VARIABLES TO BE ASSESSED: Three property variables will be used to fund the special benefit services of the district. Those variables will include: lot or parcel size, building square footage, and linear frontage. Each of these variables can be verified by County records. By law, the district can only fund special benefits, not general benefit services. Building square footage will be further categorized by "use", (retail, hotel, church, public building, office, etc). Use determines needs and therefore special benefit to be received. SERVICES TO BE FUNDED: The primary special benefits to be funded by the creation of the district will be related to maintaining order and cleanliness in the public rights of way. In addition, beautification of the Downtown will be paramount as well as creating concrete visual linkages between the Trolley stop west of the freeway and the heart of the business district at 8th and National City Boulevard. After order and beautification, district identity and promotional programs will be funded. Finally, a component for administration/corporate affairs and contingency/reserve will be included in the budget. Consistent with state legislation, the district shall remain in place for five years with provisions for annual CPI adjustments as well as annual disestablishments procedures. BENEFIT ZONES: There will be two benefit zones in the proposed district. Benefit Zones are determined by the level and frequency of services to one sector of the district, vs. another. For example, the core area parcels along National City Boulevard between 2nd and 12th, as well as 8th Street from the freeway bridge to A Avenue, will constitute Benefit Zone 1. All other parcels in the district will fall into Benefit Zone 2. ANNUAL BUDGET: The annual first year budget is anticipated to be 242,790.82. Benefit Zone 1 parcels will pay a medium due to increased benefits anticipated to be derived from the formation of the district. Building use will determine the annual building square footage costs, by Benefit Zone. The proposed building uses have been categorized as follows. Each parcel has been analyzed to determine proper category of use and therefore benefit: (Internal parking built into structure will be credited to overall building size). APPORTIONMENT OF BUILDING USES: Building Use Code Description of Use A Retail space, hotels, motels, visitor related B Office and Commerical uses, Independent, free standing parking structures C Industrial/Manufacturing/Distribution D Institutional ( School, public, park Church, Tax-exempt properties E Multi -unit housing, apratments (20 units or more) F Multi -unit housing, apratments (9 - 19 units) G Multi -unit housing, apratments (2 - 8 units) H Single Family housing units Condo units - $240.00 flat fee per year Approximately $146,565.45 (60%) of the assessments will be generated from parcels within Benefit Zone 1. The balance, $96,225.37 (40%) will be generated from Benefit Zone 2 parcels. COST: Downtown National City PBID First Year Costs by Property Variable PROPERTY VARIABLE ANNUAL COST BENEFIT ZONE 1 ANNUAL COST BENEFIT ZONE 2 TOTAL GENERATED BY VARIABLE Lot Square Footage $ 0.0841 per square foot per year $ 0.0757 per square foot per year $ 119,868.98 (49%) Building Square Footage (range) $ 0.1485-$0.1886 per square foot per year $0.1485-$0.01697 per square foot per year $80,261.42 (33%) Linear Frontage $ 1.8264 per linear foot per year $ 1.8264 per linear foot per year $40,500.42 (17%) Single Family Home And Condo Annual Fee $ 240.00 $240.00 $2,160.00 (1%) Total Annual Budget $ 242,790.82 ANNUAL ADJUSTMENT: The Board of Directors of the Management Corporation will be given the option to increase the assessments annually based upon the San Diego County regional CPI indicator or by an amount not to exceed 5% from the previous year's assessments. The Management Corporation shall have the right to shift allocations within the four categories as they feel appropriate and as long as it remains consistent with the intent of the plan. The Board shall also have the right to shift up to 10% per year from category to category, each year, as needs change with priorities of special benefits. PART II ADDRESS SERIES, GENERAL STREET BOUNDARIES LOCATION: In general, Downtown National City PBID includes all private and public parcels within the following boundaries: Street Address Series Street Name 704-724 A Avenue 827 B Avenue 811-817 C Avenue 831-835 D Avenue 41-43 E. 12th St. 14-35 E. 3rd St. 10 E. 5th St. 27-404 E. 8th St. 419 E. 9th St. 810-925 Hoover Avenue 205-1146 National City Blvd. 225-1133 Roosevelt Avenue 25-38 W. 11th St. 21 W. 12th St. 30 W.2nd Avenue 21-27 W. 3rd Avenue 21 W. 7th St. 110-200 W. 8th St. 111-225 W. 9th St. 32-121 W. Plaza Blvd. PART 111 WORK PLAN BUDGET SERVICES: Special benefit services to be financed by the Downtown National City Boulevard Property Business Improvement District will primarily include funding the following types of services. Based upon the survey results of the property owners, and estimated costs and services, the preliminary special benefits funded by the Downtown National City Property Business Improvement District are as follows: Proposed Downtown National City PBID: 1. Publi.c Rights of Way and Sidewalk Operation (PROWSO) • Sidewalk sweeping; • Beautification; • Decorations and banners; • Enhanced trash receptacle placement and regular emptying; • Removal of bulky items; • Tree and shrub planting and maintenance • Work with City on hazardous issues; • Maintenance of public order in the sidewalks; • Homeless intervention; • Equipment, supplies, tools; • Misc. 2. District Identity and Streetscape Improvement (DISI) (Predominantly in Benefit Zone 1) • Special events (1 per year) • Web site; • Pedestrian kiosks/signage • Underwriting advertising coop for hotel and retail 3. Administration and Corporate Operations: • Staffing; • Insurance; • Office related expenses; • Misc. 4. Contingency/Reserve: • Delinquencies; • City costs; • County costs; • Hardship; • Reserves; Consistent with state law, any property assessment district must confer a special benefit to real property owners paying into the assessment district. At times, specific parcels will derive greater benefit, due to their proximity to a "core" area. These core and peripheral parcels, will from time to time, be designated through "benefit zones". The Downtown National City PBID anticipates two benefit zones, each receiving varying degrees of special benefits funded from the assessment district. The two benefit zones are proposed as follows: Benefit Zones: The Downtown National City PBID Benefit Zones are created based upon the frequency and type of special benefit services that might be desired. For example, the core area near National City Boulevard and 8th Street may need special benefit services six days per week, have large special events and be the focus of many promotional activities. These property owners would pay for those specific special benefit services based upon the anticipated benefit to be received. Benefit Zone Boundaries Zone 1 (core area) National City Boulevard from 2nd to 12th Street 8th Street from the Freeway bridge to A Avenue Zone 2 (peripheral area) All other streets in the district not included in Benefit Zone 1 TABLE 1 — FREQUENCY OF SPECIAL BENEFIT SERVICES BY BENEFIT ZONES Special Benefit Service Benefit Zonel Frequency Benefit Zone 2 Frequency Public rights of way and Sidewalk operations (PROWSO) 6 days per week 4 days per week District Identity and Streetscape Improvements (DISI) • Special Events • Holiday Decorations Through Programs Once per year Seasonally Through programs None None Administration/ Corporate Operations Monday- Friday Monday -Friday PART IV ASSESSMENT METHODOLOGY TO FUND SPECIAL BENEFITS BUDGET: The first year annual budget is projected to be $242,790.82. Annual adjustments of up to a maximum of 5% over the previous year's gross assessment amount are allowable, subject to the approval of the Downtown National City Property Business Improvement District Management Corporation. TABLE 2 — SPECIAL BENEFIT SERVICES BROKEN DOWN BY ESTIMATED COSTS PER BENEFIT ZONE PROWSO Personnel Estimated Costs Service Benefit Zonel Benefit Zone 2 PROWSO: • Sidewalk Sweeping • Beautification • Decorations and banners • Enhanced trash receptacle emptying • Removal of bulky items • Reporting hazards to City; • Removal of bulky items; • Tree and shrub planting and maintenance • Maintenance of public order • Homeless intervention 6 days per week As needed As needed As needed As needed Daily As needed Weekly As needed As needed 4 days per week As needed As needed As needed As needed Daily As needed Weekly As needed As needed ESTIMATED PERSONNEL NEEDS /s cost of Supervisor; (23,040) 1 maintenance worker, full time, 40 hours per week ($27,850) 1 maintenance worker, six days per week, 48 hours ($30,720) '/2 cost of Supervisor; ($23,040) 1 maintenance worker, full time, 40 hours per week ($27,850) Estimated maintenance personnel costs $81,610 $50,890 Total Estimated Personnel Cost $132,500 *THE PURPOSE OF THIS CALCULATION IS TO PROVIDE A MATERIAL BASIS FOR THE P.R.O.W.SO. PERSONNEL COSTS. THE ADMINISTERING CORPORATION CAN CONTRACT OUT THESE SERVICES TO A FOR -PROFIT OR NON-PROFIT CORPORATION, OR PROVIDE, THE LINE ITEM IN THE BUDGET FOR THE P.R.O.W.S.O. PERSONNEL IS ESTIMATED TO BE $ 132,500.00 ANNUALLY. The basis of determining personnel cost is derived from One Source, a nationwide company that provides employees for many building management companies, as well as BIDs. One Source's rates on labor include workers comp, payroll taxes, check disbursements, health benefits, vacation and sick time. Most importantly, these are contracted employees and therefore release the management corporation of payroll and personnel related liabilities. Total overhead factor of employees, fully loaded, is about 1.6 in an overhead factor from the base wage rate. Supervisor rate was calculated at $12.00 per hour, and maintenance workers at $8.00-9.00 per hour, starting pay. We reiterate that this is simply a tool for calculating costs of maintenance personnel. The free market, and competitive bidding may produce higher and better results. It is the job of the management corporation to maximize the delivery of special benefit services to the property owners based upon various category and line items of services. The function of this crew is to deal with all services in the public rights of way, including but not limited to: sweeping, beautification, decorations, security, etc. TABLE 3 — SPECIAL BENEFIT SERVICES / P.R.O.W.S.O. NON -PERSONNEL ANNUAL COSTS INCLUDING EQUIPMENT AND MATERIALS PROWSO Equipment and Materials Truck lease, insurance Uniforms Communications Supplies Water Dumpster costs Nursery Items Small Equipment Miscellaneous Total Estimated Annual Equipment Costs Estimated Annual Cost $6,000.00 $1,000.00 $4,000.00 $8,000.00 $1,000.00 $6,000.00 $8,000.00 $3,000.00 $3,500.00 $40,500..00 Again, these services may be provided by an outside contractor, however accommodations must be made for these costs whether done in-house of an outside contractor. In addition, this budget does not assume any grants from public agencies or foundations that could underwrite the costs of equipment. Nor does it assume that the City would pay for landscaping water related costs or dumpster removal fees, both of which could be negotiated with CDC. TABLE 4- DISTRICT IDENTITY AND STREETSCAPE IMPROVEMENTS SUGGESTED BUDGET ITEMS Program to be funded/Both Benefit Zones Estimated First Year Annual Cost Special events (1 per year); $5,000 Logo Creation ( First Year only) $1,000 Web site creation and maintenance $4,000 Pedestrian kiosks / signage annually $4,000 Total Estimated First Year Annual Costs $14,000 TABLE 5 — ADMINISTRATION AND CORPORATE OPERATIONS SUGGESTED ALLOCATIONS Program to be Funded Estimated First Year Annual Cost Staff ( Community Advocacy, retail attraction, Corporate minutes, administration to Board) $26,000 Insurance $3,000 Office rent $6,000 Phone/Fax $1,000 E-mail Service $800 Office supplies $1,000 Office Equipment $2,000 Utilities $1,200 Total Estimated Annual Costs $41,000 TABLE 6 — SPECIAL BENEFIT SERVICES/ CONTINGENCY — RESERVE ANTICIPATED NEED Program to be Funded Estimated First Year Cost County Costs (1.7% of total assessments) City costs ($500.00 per year) No -pays, (uncollected assessments) (?) Misc / Reserve (Balance of expenses) Total Estimated Annual Costs $ 14,790.82 TABLE 7 — TOTAL FIRST YEAR DOWNTOWN NATIONAL CITY SPECIAL BENEFIT SERVICES BUDGET LINE ITEMS BASED UPON SUGGESTED PROGRAMS AND ALLOCATIONS Program First Year Allocation % of Total Budget Public Rights of Way and Sidewalk Operations — Personnel and Equipment for All Benefit Zones $ 173,000.00 72% District Identity and Streetscape Improvements $14,000.00 6% Administrative / Corporate Operations $41,000.00 17% Contingency / Reserve $14,790.82 5% Total Estimated First Year Costs of Programs $242,790.82 I00% METHOD OF FINANCING: This method of financing the special services is based upon the levy of assessments on real property that benefits from proposed improvements and activities. This represents a "benefit assessment district" as defined in the California Streets and Highway Code. Assessed valuation cannot be used a the basis for special benefits assessments due to the introduction of Proposition 13 into the state constitution in 1978. There are at least four basic factors that will be used in determining individual assessments. These factors include 1) linear frontage, 2) land area and 3) building square footage, 4) building use. The assessments for the Downtown National City PBID are based upon these variables, which have been endorsed by the property owners as the most fair and equitable for apportionment of assessments to participating parcels. Linear frontage will be assessed on all sides of the parcel receiving benefit. PBID assessments would be collected annually by the San Diego County tax assessor and would appear as a line item on the annual property tax bills. The assessments are collected by the County and transferred to the City of National City. They are then transferred directly to the Downtown National City PBID Management Corporation. The funds are then allocated consistent with the previously agreed upon programs in the Management District Plan. TABLE 8 — TOTAL GROSS DOWNTOWN NATIONAL CITY PBID PROPERTY VARIABLES Property Variables Total in District Lot Size 1,489,289 square feet Building Size 446,214 square feet Linear Feet 22,175 linear feet There are 153 parcels and 96 legal owners currently in the database of the above mentioned property variables. There are about 34 square blocks in the district. Apportionment of Costs to Property Variables used in the Assessment Methodology As is common practice, various property variables fund different special benefit services in the district. We have employed an assessment methodology that we believe supports the relationship between assessments paid and benefits received. The following programs and services must confer a special benefit to real property owners to be consistent with Article X111 (d) of the state constitution. ANNUAL BUDGET: The annual first year budget is anticipated to be $242,790.82. Benefit Zone 1 parcels will pay a premium due to increased services and increased benefits anticipated to be derived from the formation of the district. Building use will determine the annual building square footage costs, by Benefit Zone. The proposed building uses have been categorized as follows. Each parcel has been analyzed to determine proper category of use and therefore benefit: (Internal parking built into structure will be credited to overall building size). TABLE 9 — DEFINITION OF BUILDING/ LAND USES: Building Use Code Description of Use A Retail space, hotels, motels, visitor related B Office and Commercial uses, Independent, free standing parking structures C Industrial / Manufacturing / Distribution D Institutional (School, public, park Church, Tax-exempt properties E Multi -unit housing, apartments (20 units or more) F Multi -unit housing, apartments (9 — 19 units) G Multi -unit housing, apartments (2 — 8 units) H Single Family housing units - $ 240.00 flat fee per year I Condo units, $240.00 flat fee per year The proposed apportionment of special benefits to the various property variables are as follows: TABLE 10 — APPORTIONMENT OF SERVICES TO PROPERTY VARIABLES Program to be Funded Benefit Zone Apportioned to Variable PROWSO: • Maintenance Personnel 1 1/2 to all building square footage (81,610) V2 to all lot size in Benefit Zone 1 • Maintenance Personnel 2 '/ to all building square footage, ($50,890) '/2 to all lot size in Benefit Zone 2 • Non -personnel, equipment 1,2 All linear frontage, apportioned ($40,500) Equally in both Benefit Zones DISTRICT IDENTITY AND STREETSCAPE IMPROVEMENTS: • Special events (1 per year) 1 Building square footage "a" only ($5,000) • Logo creation 1,2 Building square footage a-c ($1,000) Building square footage a-c • Web site creation/maintenance 1,2 ($4,000) • Pedestrian kiosks/signage 1,2 Building square footage a-d ($4,000) ADMINISTRATION AND CORPORATE 1,2 Apportioned equally to all lot size OPERATIONS ($41,000) in both zones CONTINGENCY / RESERVE 1,2 Apportioned equally to all lot size ($14,790.82) in both zones The assessment methodology annual costs are summed up in the following table: TABLE 11- ANNUAL COSTS PER SPECIAL BENEFIT SERVICE AND BENEFIT ZONE Benefit Zone Lot Square foot annual costs Building square foot annual costs Linear frontage annual costs Contribution to total budget 1 $0.0841 a. $0.1886 b. $0.1696 c. $0.1696 d. $0.1577 e. $0.1485 f. $0.1485 g. $0.1485 $1.8264 $146,565.45 Benefit Zone Lot Square foot annual costs Building square foot annual costs Linear frontage annual costs Contribution to total budget 2 $0.0757 a. $0.1697 b. $0.1697 c. $0.1697 d. $0.1578 e. $0.1485 f. $0.1485 g. $0.1485 $1.8264 $96,225.37 Both Condos and Single family homes $ 240.00 per year per unit Approximately $146,565.45 (60%) of the assessments will be generated from parcels within Benefit Zone 1. The balance, $96,225.37 (40%) will be generated from Benefit Zone 2 parcels. CONDO FACTOR: It is unknown at this point how much future condos will contribute to the district. Since the condos are being built in mixed use or commercially zoned areas, they are nor exempt from payment into the assessment district. The condo owners will derive and appreciate the special benefit services they will receive from the cleaning and beautification services in the district. Provisions will be made to avoid a property variable and unit assessment for condos. Once a parcel or parcel(s) have been converted to condos, the per unit fee will kick in, however that parcel will have its linear frontage, building square footage and lot size deleted as a variable to be assessed. For example, if a 5,000 square foot lot is converted from a parking lot to a 10 unit condo development, that parcel will be reassessed to capture the $2,400 condo assessments annually now generated from that parcel (10 x $240.00 per year.) Simultaneously, the property variables of that parcel will be eliminated from the overall PBID database so the new condo owners are not doubly assessed for their property variables and condo units. Condos and residentially utilized single family residences will pay the same flat fee per year into the district. - DOWNTOWN NATIONAL CITY PBID FIRST YEAR COSTS BY PROPERTY VARIABLE PROPERTY VARIABLE ANNUAL COST BENEFIT ZONE 1 ANNUAL COST BENEFIT ZONE 2 TOTAL GENERATED BY VARIABLE Lot Square Footage $0.0841 per square foot per year $0.0757 per square foot per year $119,868.98 Building Square Footage (range) $0.1485-$0.1886 per square foot per year $0.1485-$0.1697 per square foot per year $80,261.42 (33%) Linear Frontage $1.8264 per linear foot per year $1.8264 per linear foot per year $40,500.42 (17%) Single Family Home And Condo Annual Fee $240.00 $240.00 $2,160.00 (1%) Total Annual Budget $242,790.82 TABLE 13- AMOUNTS GENERATED BY DONWTOWN NATIONAL CITY PBID Property Variable Total Gross Variable, Both Benefit Zones Amount Generated First Parcel or Lot Size 1489,289 $119,868.98 Building Square Feet 446,214 $80,261.42 Linear Frontage 22,175 $40,500.42 Single Family Home And Condo Annual Fee 9 $2,160.00 Total Assessments, First Year -Both Zones $242,790.82 PART V RELEVANT ENABLING LEGISLATION, AB 1021 The relevant enabling PBID legislation, which allows the property owners of Downtown National City to fund these special benefit services, is to be found in o Section 36600 of the California Streets and Highway Code known as the Property Business Improvement District Law of 1994. (Amended in 2000, 2003) On July 20, 2001, Governor Gray Davis signed AB 1021, approving changes to the Property Business Improvement District Law of 1994, (Cal. Streets and highway Code Sections 36600 et. Seq.) which changes several procedures involving PBIDs. The law became effective on January 1, 2002. The major change within the law is the establishment of an "Owner's Association." This Association will be a private, non-profit entity that will contract with the City to manage the PBID. It will be subject to the Brown Act (Ca. Government Code Sections 6250 et seq.) However, the Association will not be considered as a public entity for any other purpose. Similarly, any board members or staff will not be considered public officials. Under the amended law, all property owners who do not pay assessments will be subject to penalties for delinquent payments. The amended statute also provides provisions for renewal of the PBID. If the PBID is renewed after its first term (up to five years), the funds from the prior district may be used in the renewed district only for the benefit of the parcels within the boundaries of the prior district. If no parcels from the prior district are within the renewed district, the funds must be returned to the property owners. Also, upon renewal, a district may be renewed for up to ten years. These changes clarify issues regarding PBID operations and formation and the status of the non-profit organizations that manage PBIDs in the aftermath of the court ruling in Epstein vs. the Hollywood Entertainment District. The Epstein decision classified non-profit organizations that managed PBID's as public entities for purposes of the Brown Act. The issue has been raised that if the organizations were public entities for the Brown Act, could they also be public entities for other acts, such as the Political Reform Act. The changes in the new legislation ensure that these PBID and BID Management Corporations are not considered public entities for any California la except the Ralph M. Brown Act and the Public Records Act. Proposition 218 (Article XIII D of the state constitution) states in Section 4 (a): "No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional benefit conferred on that parcel. Only special benefits are assessable, and an agency must separate the general benefits from the special benefits conferred on a parcel." FORMATION: ■ District formation requires submittal of petitions from property owners representing at least 50% of the total assessment. The "Right to Vote on Taxes Act" (Proposition 218) requires that more than 50% of the ballots received, weighted by assessment, be in support of the District. • This petition support ensures that the mail ballot procedure will be successful in the formation of the district. Once the necessary thresholds of petitions have been collected, the management district plan will then be submitted to the City to begin processing the public hearing. With the adoption of an ordinance of intention, the City Council will Authorized the City Clerk to send out the mail ballots to all affected property owners to determine their support for the establishment of the district. • When all is said and done, the first assessment should be collected with the annual property tax bill in December 2004 with the Management Corporation receiving its first installment payment in January 2005. DURATION: • Pursuant to State Law, the District will have a set term. The proposed district will have a five-year life commencing January 1, 2005. After five years, the petition process must be repeated for the District to be re-established. TIME LINE AS SPECIFIED BY LAW: The district must be established to take advantage of the County's tax assessment notification schedule. Mindful of that, all property related assessment district must be established by the end of July in any calendar year, in order to have assessments levied on parcels for the upcoming fiscal year. In our case, the district must be established through an assessment ballot proceeding in late July 2004, in order to notify the County in time for the 2004-05 fiscal tax year. The first assessments would then appear on the property tax statements due in December 2004. In order to take advantage of this schedule, as well as to generate revenues in early 2005, the following time line has been adopted to ensure timely funding of special benefit programs - To work effectively, we must look at the completion date and work backwards: Date must be completed by Task to be completed July 20th, 2004 Public hearing/assessment balloting proceeding, ballots Counted by weight June 8th Resolution of intent by City to establish the district May 1st — May 315t Property owners representing 50% of the weight, based Upon assessments to be delivered, must sign petition endorsing April 30th Finalize management district plan including special benefit services to be provided, duration of district, boundaries, Benefit zones, assessment methodology, administration, etc. Initiate petition drive April 20, 2004 First rough draft Management District Plan submitted to PBID Steering Committee PART VI ENGINEER'S REPORT, EXEMPTIONS, ANNUAL ASSESSMENT INCREASES AND THE DURATION OF THE DISTRICT A. Assessment Methodology Property owners in Downtown National City have emphasized that an assessment formula for a PBID be fair, balanced and commensurate with special benefits received. NEW CITY AMERICA has contracted with Ed Henning and Associates to come up with a plant that has been certified by a licensed engineer. In preparing the engineer's report for the Downtown National City PBID, the engineer concluded that the special benefit to each parcel was found to be proportional to the property variable and their apportionment. An Engineer's report for the PBID is provided in the Appendix. B. Time and Manner for Collecting Assessments: As provided by state law, the Downtown National City Property Business Improvement District will appear as a separate line item on the annual property tax bills prepared by the San Diego County Tax Assessor. Property tax bills are generally distributed in the Fall and payment is expected by lump sum or in two installments. The County Assessor shall distribute the assessments to the City who will in turn then forward them to the designated Downtown National City PBID Management Corporation pursuant to the authorization of this plan. Existing law for enforcement of property taxes apply to the Management District assessments. The assessments shall be collected at the same time in the same manner as for any possessory interest tax paid to the County of San Diego. These assessments shall provide for the same lien priority and penalties for delinquent payment as is provided for the possessory interest tax. The "property owner" of the possessory interest shall be any person as the owner/taxpayer on the last equalized possessory interest assessment roll or otherwise known to be the owner/tax payer by the City Council. The City Council has no obligation other information as to the ownership of the interest, and its determination or ownership shall be final and conclusive for the purposed of this district. C. Publicly Owned Parcels and Government Assessments: The Downtown National City PBID Steering Committee assumes that the City of National City, The Community Development Commission, Southwestern College, the County, the Unified School District, the State of California and any other publicly owned parcels will pay assessments for the special benefits conferred upon government owned property within the boundaries of the PBID. Article XIII D of the California Constitute, (Proposition 218), explains the basis for assessing publicly owned parcels: "Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt form Assessments unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. D. Annual Assessment Adjustment: The PBID Management Corporation, will be granted the option of increasing the assessments annually based upon the Customer Price Index of San Diego County or by a flat amount, not to exceed 5% per year. E. District Duration: Pursuant to State PBID Law, the Downtown National City PBID will have duration of five years, commencing on January 1, 2005 and extending through December 31s' 2009. This is the maximum period allowable for a new PBID under state legislation. Any continuation of the District after its five-year period will require compliance with all regulations and statutes in place at the time relative to the establishment of the new PBID. PART VII DISTRICT GOVERNANCE AND THE DOWNTOWN NATIONAL CITY P.B.I.D. MANAGEMENT CORPORATION A few rules and regulations should be considered by the Downtown National City PBID Management Corporation in the administration of the district. • Conflict of Interest: Any stakeholder who serves on the administering corporation's Board of Directors shall recuse himself or herself from any vote in which a potential conflict of interest is apparent. Such potential conflicts include, but are not limited to, prioritizing capital improvement projects which result in special benefit to specific property owners, prioritization of services to benefit a particular owner or group of owners, hiring or selecting the relatives of Board members, etc. In addition, the Management Corporation shall aim to meet the following operational objectives for the district.... • Create and manage programs that best respond to the top priorities of district property owners; • Maximize coordination of the City government to avoid duplication of services and to leverage resources; • Deliver services through a cost-effective, non -bureaucratic and easy to access organizational structure; • Provide accountability and responsiveness to those who pay through open access to Board meetings, elections to the Board and Board records. APPENDIX A MAP OF THE DISTRICT 09:40 FAX 6197252196 �. .• • UNIT 06 ®oil 18690 Downtown National City PBID %rigaZone 1 Benefit Zmiez Ulbibit we n,i,lmnn[1I2.!2AAA °f,nff; MEETING DATE: July 19, 2005 City of National City COUNCIL AGENDA STATEMENT AGENDA ITEM NO. ITEM TITLE: RESOLUTION APPROVING THE ASSESSMENT ENGINEER'S REPORT AS OUTLINED IN THE DOWN- TOWN NATIONAL CITY PROPERTY BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN FOR PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS WITHIN THE DOWNTOWN NATIONAL CITY MAN- AGEMENT DISTRICT. PREPARED BY: Benjamin Martinez, Executive Director EXPLINATION: DEPARTMENT: Community Development Commission The Engineer's Report calculates the annual cost to be assessed to each property owner located within the District. The amounts provided in the report are intended to provide various improvements to the district including: • Sidewalk sweeping • Decorations and banners • Enhanced trash receptacles • Administration, legal and engineering costs • Signed refurbishment costs • Other contingencies The County of San Diego Auditor and Controller will collect fees as part of the annual property tax roll procedures. Upon collection, the funds will then be disbursed to the City. This resolution adopts the Engineer's Report and orders it to be filed in the Office of the City Clerk as a permanent re- cord and to remain open to public inspection. I Environmental Review: X N/A Financial Statement: Maintenance costs for fiscal -year 2004-2005 operation of the District were estimated at $242,790.82 with an option to in- crease a maximum 5% for subsequent years with fees to the property owners in the range from $240 to $22,786.90. No change in the assessment amount is expected for fiscal year 2005-2006. STAFF RECOMMENDATION: Approve above -subject resolution BOARD/COMMISSION RECOMMENDATION: A Public Meeting was scheduled for August 1st at 4:OOpm in the City Council Chambers to discuss the proposed assessment with interested property owners. ATTACHMENTS (Listed Below) Resolution No. Downtown National City Property Business Improvement District Management District Plant RESOLUTION NO. 2005- RESOLUTION APPROVING THE ASSESSMENT ENGINEER'S REPORT AS OUTLINED IN THE DOWNTOWN NATIONAL CITY PROPERTY BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN FOR PROCEEDINGS FOR THE ANNUAL LEVY OF ASSESSMENTS WITHIN THE DOWNTOWN NATIONAL CITY MANAGEMENT DISTRICT. WHEREAS, the City Council of the City of National City, pursuant to the terms of the "Landscaping and Lighting Act of 1972" being Division 15, Part 2 of the Streets and Highways Code of the State of California (the "1972 Act") and Article ID of the Constitution of the State of California ("Article XIIID"), has received an Assessment Engineer's Report ("Report") as outlined in the Downtown National City Property Business Improvement District Management District Plan for the annual levy of assessments within a district, said district known and designated as the Downtown National City Property Business Improvement District (hereinafter referred to as the "District"); and, WHEREAS, this City Council has now carefully examined and reviewed the "Report" as presented, and is satisfied with each and all of the items and documents as set forth therein, and is satisfied that the assessments, on a preliminary basis, have been spread in accordance with the special benefits received from the improvements to be maintained, as set forth in said. "Report". NOW THEREFORE, BE TT RESOLVED by the City Council of the City of National City as follows: RECITALS Section 1. The above recitals are all true and correct PROCEDURES Section 2. That the "Report" as presented consists of the following: A. Plans and specifications describing the general nature, location and extent of the improvements to be maintained and the extent of such maintenance; B. An estimate of the cost of the maintenance of the improvements for the Maintenance District for the referenced fiscal year; C. A diagram for the Maintenance District, showing the area and properties proposed to be assessed; D. An assessment of the estimated costs of the maintenance, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefits received. Section 3. Said Report includes all costs and expenses of maintenance and service for the fiscal year commencing July 1, 2005, and ending June 30, 2006. Section 4. Said Report, as presented, is hereby approved on a preliminary basis, and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. Section 5. That the City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of the Engineer's "Report". PASSED AND ADOPTED this 19th day of July 2005. Nick Inzunza, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FROM: George H. Eiscr, III City Attorney NEW CITY AMERICA, INC MARCO LI MANDRI, PRESDIENT * WWW.NEWCITYAMERICA.COM DOWNTOWN NATIONAL CITY PROPERTY BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN Formed Under California Streets and Highway Code Section 36600 Property Business Improvement District Act of 1994 FINAL PLAN SUBMITTED TO: THE DOWNTOWN NATIONAL CITY P.B.I.D. STEERING COMMITTEE THE CITY OF NATIONAL CITY COMMUNITY DEVELOPMENT COMMISSION EXECUTIVE DIRECTOR BEN MARTINEZ MAYOR NIC INZUNZA AND CITY COUNCIL MEMBERS LUIS NATIVIDAD, RON MORRISON, FRANCISCO PARRA AND ROSALIE ZARATE PRESENTED BY: MARCO LI MANDRI, NEW CITY AMERICA INC. APPROVED APRIL 30, 2004 DOWNTOWN NATIONAL CITY PROPERTY BUSINESS IMPROVEMENT DISTRICT MANAGEMENT DISTRICT PLAN FINAL PLAN- APRIL 30, 2004 TABLE OF CONTENTS I. INTRODUCTION, EXECUTIVE SUMMARY II. ADDRESS SERIES, GENERAL STREET BOUNDARIES III. WORK PLAN AND BUDGET IV. ASSESSMENT METHODOLOGY TO FUND THE SPECIAL BENEFITS V. RELEVANT ENABLING LEGISLATION, AB 1021 VI. ENGINEER'S REPORT AND RELATIONSHIP BETWEEN ASSESSMENTS PAID AND SPECIAL SERVICES RECEIVED VII. DISTRICT GOVERNANCE APPENDIX A. MAP OF THE DISTRICT B. FIVE YEAR PROJECTION OF ASSESSMENTS C. LIST OF PARCELS INCLUDED IN DISTRICT D. CERTIFIED ENGINEER'S REPORT PART 1 EXECUTIVE SUMMARY DOWNTOWN NATIONAL CITY MANAGEMENT DISTRICT PLAN Statement of Purpose Over the past two years, the people of San Diego County have begun to see National City in a whole new light. Long identified with the extremely successful National City Mile of Cars, the City now has the distinct identify of a municipal corporation aggressively moving forward on a number of fronts. Whether it be the visionary Marina project, the development of Filipino Village, the beautification of Highland Avenue or the creation of the Education Village in Downtown National City, more things are happening in this City than almost anywhere else in the County. Under the leadership of the Mayor and City in a race to re- position it as a great City with bustling commerce, historic significance, a great urban forestry plan, strengthening of ethnic neighborhoods and experimenting with what makes Downtowns work in the 21 st Century. Led by a group of significant, small and long-time business and property owners, this effort to establish a Property Business Improvement District was initiated in March 2004. With great speed and tremendous commitment, it is the intent of this district to be established and generate its first revenues by the conclusion of calendar year 2004. Such an undertaking is unprecedented but reflects the seriousness of the effort of the Downtown stakeholders to redefine themselves to the surroundings region. With the growing state budget crisis in California and its resulting impact on the cities, it is safe to assume that current National City general benefit services delivered in the Downtown business district will not increase in the future. To make the Downtown district and community better, commercial and institutional property owners must look at new ways of funding special benefit services to clean up the district as well as promote the area. Such special benefit services could include bringing a new identity to the Downtown business district, funding new gateway signs to the district, regular sidewalk sweeping, sidewalk steam cleaning, removal of bulky items, trash receptacle emptying, providing private security services above and beyond that of the National City Police Depaitment aiding in the coordination of homeless intervention services, proposing solutions to parking problems, initiating beautification programs, tree planting and maintenance, coming up with new marketing and promotions programs, defining greater visual linkages to the 8th Street Trolley stop as well as serving as an advocacy group of business and property owners. This proposed Downtown National City PBID or special benefits district would be funded through an assessment levied on each and every parcel in the finalized and approved boundaries in Downtown. Affected property owners have determined the exact costs of funding these special benefit services. All properties, public and private, would be included in this new assessment district. In early April, a survey was mailed to every property owner within the initial study area. The area included all parcels on National City Blvd. between 2°a Street on north, 12th Street on the south, and long 8th Street from the Trolley Stop on the west to E Avenue on the east. There are 153 parcels in the proposed district, represented by 96 property owners. The district is approximately 34 square blocks. The database compiled by New City America, Inc. reveals the following data that would create the material basis for the appointment of assessments throughout the district: o 1,489,289 square feet in total lot size; o 446, 214 square feet in total building size; o 22,175 linear feet in total frontage The survey results were quite stunning The results of the survey were as follows: NUMBER OF RESPONSES: Respondents represented the following property variables: Lot size: Building size Linear Frontage 522,523 square feet or 35% of the total 240,713 square feet or 54% of the total 8,248 linear feet or 37% of the total Of those who responded to the survey, the following respondents, (by weight) demonstrated their support for creation of the PBID: Responses from Property Owners Who Returned PBID Survey Response Support Formation Oppose Formation Lot Size 76% 24 % Building Size 88% 12% Linear Frontage 77% 23% Of those who responded, the following represent support of specific special benefits funded by the PBID: ➢ 61% had owned their property for 9 years or less; ➢ 73% were sole proprietorship or family owned properties ➢ 52% believed that National City had been portrayed negatively by the major media in the last few years; ➢ 84% believed that Downtown was unsafe or "safe, however suffers an image as an unsafe district;" ➢ 54% would support property owners funded special benefit security services; ➢ 54% feel their customers would not feel safe walking from the corner of 8th and National City Blvd. and the trolley Stop; ➢ 64% would support initiation of property owner funded regular sidewalk/gutter sweeping and steam cleaning services; ➢ 70% support property owner funded special events to improve the identity of Downtown; Based upon this level of support, the Downtown National City PBID Steering Committee is presenting the following to all Downtown Property Owners for their consideration: PROPERTY VARIABLES TO BE ASSESSED: Three property variables will be used to fund the special benefit services of the district. Those variables will include: lot or parcel size, building square footage, and linear frontage. Each of these variables can be verified by County records. By law, the district can only fund special benefits, not general benefit services. Building square footage will be further categorized by "use", (retail, hotel, church, public building, office, etc). Use determines needs and therefore special benefit to be received. SERVICES TO BE FUNDED: The primary special benefits to be funded by the creation of the district will be related to maintaining order and cleanliness in the public rights of way. In addition, beautification of the Downtown will be paramount as well as creating concrete visual linkages between the Trolley stop west of the freeway and the heart of the business district at 8th and National City Boulevard. After order and beautification, district identity and promotional programs will be funded. Finally, a component for administration/corporate affairs and contingency/reserve will be included in the budget. Consistent with state legislation, the district shall remain in place for five years with provisions for annual CPI adjustments as well as annual disestablishments procedures. BENEFIT ZONES: There will be two benefit zones in the proposed district. Benefit Zones are determined by the level and frequency of services to one sector of the district, vs. another. For example, the core area parcels along National City Boulevard between 2nd and 12th, as well as 8th Street from the freeway bridge to A Avenue, will constitute Benefit Zone 1. All other parcels in the district will fall into Benefit Zone 2. ANNUAL BUDGET: The annual first year budget is anticipated to be 242,790.82. Benefit Zone 1 parcels will pay a medium due to increased benefits anticipated to be derived from the formation of the district. Building use will determine the annual building square footage costs, by Benefit Zone. The proposed building uses have been categorized as follows. Each parcel has been analyzed to determine proper category of use and therefore benefit: (Internal parking built into structure will be credited to overall building size). APPORTIONMENT OF BUILDING USES: Building Use Code Description of Use A Retail space, hotels, motels, visitor related B Office and Commerical uses, Independent, free standing parking structures C Industrial/Manufacturing/Distribution D Institutional ( School, public, park Church, Tax-exempt properties E Multi -unit housing, apratments (20 units or more) F Multi -unit housing, apratments (9 - 19 units) G Multi -unit housing, apratments (2 - 8 units) H Single Family housing units Condo units - $240.00 flat fee per year Approximately $146,565.45 (60%) of the assessments will be generated from parcels within Benefit Zone 1. The balance, $96,225.37 (40%) will be generated from Benefit Zone 2 parcels. COST: Downtown National City PBID First Year Costs by Property Variable PROPERTY VARIABLE ANNUAL COST BENEFIT ZONE 1 ANNUAL COST BENEFIT ZONE 2 TOTAL GENERATED BY VARIABLE Lot Square Footage $ 0.0841 per square foot per year $ 0.0757 per square foot per year $ 119,868.98 (49%) Building Square Footage (range) $ 0.1485-$0.1886 per square foot per year $0.1485-$0.01697 per square foot per year $80,261.42 (33%) Linear Frontage $ 1.8264 per linear foot per year $ 1.8264 per linear foot per year $40,500.42 (17%) Single Family Home And Condo Annual Fee $ 240.00 $240.00 $2,160.00 (1%) Total Annual Budget $ 242,790.82 ANNUAL ADJUSTMENT: The Board of Directors of the Management Corporation will be given the option to increase the assessments annually based upon the San Diego County regional CPI indicator or by an amount not to exceed 5% from the previous year's assessments. The Management Corporation shall have the right to shift allocations within the four categories as they feel appropriate and as long as it remains consistent with the intent of the plan. The Board shall also have the right to shift up to 10% per year from category to category, each year, as needs change with priorities of special benefits. PART II ADDRESS SERIES, GENERAL STREET BOUNDARIES LOCATION: In general, Downtown National City PBID includes all private and public parcels within the following boundaries: Street Address Series Street Name 704-724 A Avenue 827 B Avenue 811-817 C Avenue 831-835 D Avenue 41-43 E. 12th St. 14-35 E. 3rd St. 10 E. 5th St. 27-404 E. 8th St. 419 E. 9th St. 810-925 Hoover Avenue 205-1146 National City Blvd. 225-1133 Roosevelt Avenue 25-38 W. 11th St. 21 W. 12th St. 30 W. 2nd Avenue 21-27 W. 3rd Avenue 21 W. 7th St. 110-200 W. 8th St. 111-225 W. 9th St. 32-121 W. Plaza Blvd. PART 111 WORK PLAN BUDGET SERVICES: Special benefit services to be financed by the Downtown National City Boulevard Property Business Improvement District will primarily include funding the following types of services. Based upon the survey results of the property owners, and estimated costs and services, the preliminary special benefits funded by the Downtown National City Property Business Improvement District are as follows: Proposed Downtown National City PBID: 1. Public Rights of Way and Sidewalk Operation (PROWSO) • Sidewalk sweeping; • Beautification; • Decorations and banners; • Enhanced trash receptacle placement and regular emptying; • Removal of bulky items; • Tree and shrub planting and maintenance • Work with City on hazardous issues; • Maintenance of public order in the sidewalks; • Homeless intervention; • Equipment, supplies, tools; • Misc. 2. District Identity and Streetscape Improvement (DISI) (Predominantly in Benefit Zone 1) • Special events (1 per year) • Web site; • Pedestrian kiosks/signage • Underwriting advertising coop for hotel and retail 3. Administration and Corporate Operations: • Staffing; • Insurance; • Office related expenses; • Misc. 4. Contingency/Reserve: • Delinquencies; • City costs; • County costs; • Hardship; • Reserves; Consistent with state law, any property assessment district must confer a special benefit to real property owners paying into the assessment district. At times, specific parcels will derive greater benefit, due to their proximity to a "core" area. These core and peripheral parcels, will from time to time, be designated through "benefit zones". The Downtown National City PBID anticipates two benefit zones, each receiving varying degrees of special benefits funded from the assessment district. The two benefit zones are proposed as follows: Benefit Zones: The Downtown National City PBID Benefit Zones are created based upon the frequency and type of special benefit services that might be desired. For example, the core area near National City Boulevard and 8th Street may need special benefit services six days per week, have large special events and be the focus of many promotional activities. These property owners would pay for those specific special benefit services based upon the anticipated benefit to be received. Benefit Zone Boundaries Zone 1 (core area) National City Boulevard from 2nd to 12th Street 8th Street from the Freeway bridge to A Avenue Zone 2 (peripheral area) All other streets in the district not included in Benefit Zone 1 TABLE 1 — FREQUENCY OF SPECIAL BENEFIT SERVICES BY BENEFIT ZONES Special Benefit Service Benefit Zonel Frequency Benefit Zone 2 Frequency Public rights of way and Sidewalk operations (PROWSO) 6 days per week 4 days per week District Identity and Streetscape Improvements (DISI) • Special Events • Holiday Decorations Through Programs Once per year Seasonally Through programs None None Administration/ Corporate Operations Monday- Friday Monday -Friday PART IV ASSESSMENT METHODOLOGY TO FUND SPECIAL BENEFITS BUDGET: The first year annual budget is projected to be $242,790.82. Annual adjustments of up to a maximum of 5% over the previous year's gross assessment amount are allowable, subject to the approval of the Downtown National City Property Business Improvement District Management Corporation. TABLE 2 — SPECIAL BENEFIT SERVICES BROKEN DOWN BY ESTIMATED COSTS PER BENEFIT ZONE PROWSO Personnel Estimated Costs Service Benefit Zonel Benefit Zone 2 PROWSO: ■ Sidewalk Sweeping ■ Beautification • Decorations and banners • Enhanced trash receptacle emptying • Removal of bulky items ■ Reporting hazards to City; ■ Removal of bulky items; • Tree and shrub planting and maintenance • Maintenance of public order • Homeless intervention 6 clays per week As needed As needed As needed As needed Daily As needed Weekly As needed As needed 4 days per week As needed As needed As needed As needed Daily As needed Weekly As needed As needed ESTIMATED PERSONNEL NEEDS h cost of Supervisor; (23,040) 1 maintenance worker, full time, 40 hours per week ($27,850) 1 maintenance worker, six days per week, 48 hours ($30,720) % cost of Supervisor; ($23,040) 1 maintenance worker, full time, 40 hours per week ($27,850) Estimated maintenance personnel costs $81,610 $50,890 Total Estimated Personnel Cost $132,500 *THE PURPOSE OF THIS CALCULATION IS TO PROVIDE A MATERIAL BASIS FOR THE P.R.O.W.SO. PERSONNEL COSTS. THE ADMINISTERING CORPORATION CAN CONTRACT OUT THESE SERVICES TO A FOR -PROFIT OR NON-PROFIT CORPORATION, OR PROVIDE, THE LINE ITEM IN THE BUDGET FOR THE P.R.O.W.S.O. PERSONNEL IS ESTIMATED TO BE $ 132,500.00 ANNUALLY. The basis of determining personnel cost is derived from One Source, a nationwide company that provides employees for many building management companies, as well as BIDS. One Source's rates on labor include workers comp, payroll taxes, check disbursements, health benefits, vacation and sick time. Most importantly, these are contracted employees and therefore release the management corporation of payroll and personnel related liabilities. Total overhead factor of employees, fully loaded, is about 1.6 in an overhead factor from the base wage rate. Supervisor rate was calculated at $12.00 per hour, and maintenance workers at $8.00-9.00 per hour, starting pay. We reiterate that this is simply a tool for calculating costs of maintenance personnel. The free market, and competitive bidding may produce higher and better results. It is the job of the management corporation to maximize the delivery of special benefit services to the property owners based upon various category and line items of services. The function of this crew is to deal with all services in the public rights of way, including but not limited to: sweeping, beautification, decorations, security, etc. TABLE 3 — SPECIAL BENEFIT SERVICES / P.R.O.W.S.O. NON -PERSONNEL ANNUAL COSTS INCLUDING EQUIPMENT AND MATERIALS PROWS() Equipment and Materials Truck lease, insurance Uniforms Communications Supplies Water Dumpster costs Nursery Items Small Equipment Miscellaneous Total Estimated Annual Equipment Costs Estimated Annual Cost $6,000.00 $1,000.00 $4,000.00 $8,000.00 $1,000.00 $6,000.00 $8,000.00 $3,000.00 $3,500.00 $40,500..00 Again, these services may be provided by an outside contractor, however accommodations must be made for these costs whether done in-house of an outside contractor. In addition, this budget does not assume any grants from public agencies or foundations that could underwrite the costs of equipment. Nor does it assume that the City would pay for landscaping water related costs or dumpster removal fees, both of which could be negotiated with CDC. TABLE 4- DISTRICT IDENTITY AND STREETSCAPE IMPROVEMENTS SUGGESTED BUDGET ITEMS Program to be funded/Both Benefit Zones Estimated First Year Annual Cost Special events (1 per year); $5,000 Logo Creation ( First Year only) $1,000 Web site creation and maintenance $4,000 Pedestrian kiosks / signage annually $4,000 Total Estimated First Year Annual Costs $14,000 TABLE 5 — ADMINISTRATION AND CORPORATE OPERATIONS SUGGESTED ALLOCATIONS Program to be Funded Estimated First Year Annual Cost Staff ( Community Advocacy, retail attraction, Corporate minutes, administration to Board) $26,000 Insurance $3,000 Office rent $6,000 Phone/Fax $1,000 E-mail Service $800 Office supplies $1,000 Office Equipment $2,000 Utilities $1,200 Total Estimated Annual Costs $41,000 TABLE 6 — SPECIAL BENEFIT SERVICES/ CONTINGENCY — RESERVE ANTICIPATED NEED Program to be Funded Estimated First Year Cost County Costs (1.7% of total assessments) City costs ($500.00 per year) No -pays, (uncollected assessments) (?) Misc / Reserve (Balance of expenses) Total Estimated Annual Costs $ 14,790.82 TABLE 7 — TOTAL FIRST YEAR DOWNTOWN NATIONAL CITY SPECIAL BENEFIT SERVICES BUDGET LINE ITEMS BASED UPON SUGGESTED PROGRAMS AND ALLOCATIONS Program First Year Allocation % of Total Budget Public Rights of Way and Sidewalk Operations — Personnel and Equipment for All Benefit Zones $ 173,000.00 72% District Identity and Streetscape Improvements $14,000.00 6% Administrative / Corporate Operations $41,000.00 17% Contingency / Reserve $14,790.82 5% Total Estimated First Year Costs of Programs $242, 790.82 100% METHOD OF FINANCING: This method of financing the special services is based upon the levy of assessments on real property that benefits from proposed improvements and activities. This represents a "benefit assessment district" as defined in the California Streets and Highway Code. Assessed valuation cannot be used a the basis for special benefits assessments due to the introduction of Proposition 13 into the state constitution in 1978. There are at least four basic factors that will be used in determining individual assessments. These factors include 1) linear frontage, 2) land area and 3) building square footage, 4) building use. The assessments for the Downtown National City PBID are based upon these variables, which have been endorsed by the property owners as the most fair and equitable for apportionment of assessments to participating parcels. Linear frontage will be assessed on all sides of the parcel receiving benefit. PBID assessments would be collected annually by the San Diego County tax assessor and would appear as a line item on the annual property tax bills. The assessments are collected by the County and transferred to the City of National City. They are then transferred directly to the Downtown National City PBID Management Corporation. The funds are then allocated consistent with the previously agreed upon programs in the Management District Plan. TABLE 8 — TOTAL GROSS DOWNTOWN NATIONAL CITY PBID PROPERTY VARIABLES Property Variables Total in District Lot Size 1,489,289 square feet Building Size 446,214 square feet Linear Feet 22,175 linear feet There are 153 parcels and 96 legal owners currently in the database of the above mentioned property variables. There are about 34 square blocks in the district. Apportionment of Costs to Property Variables used in the Assessment Methodology As is common practice, various property variables fund different special benefit services in the district. We have employed an assessment methodology that we believe supports the relationship between assessments paid and benefits received. The following programs and services must confer a special benefit to real property owners to be consistent with Article X111 (d) of the state constitution. ANNUAL BUDGET: The annual first year budget is anticipated to be $242,790.82. Benefit Zone 1 parcels will pay a premium due to increased services and increased benefits anticipated to be derived from the formation of the district. Building use will determine the annual building square footage costs, by Benefit Zone. The proposed building uses have been categorized as follows. Each parcel has been analyzed to determine proper category of use and therefore benefit: (Internal parking built into structure will be credited to overall building size). TABLE 9 — DEFINITION OF BUILDING/ LAND USES: Building Use Code Description of Use A Retail space, hotels, motels, visitor related B Office and Commercial uses, Independent, free standing parking structures C Industrial / Manufacturing / Distribution D Institutional (School, public, park Church, Tax-exempt properties E Multi -unit housing, apartments (20 units or more) F Multi -unit housing, apartments (9 — 19 units) G Multi -unit housing, apartments (2 — 8 units) H Single Family housing units - $ 240.00 flat fee per year I Condo units, $240.00 flat fee per year The proposed apportionment of special benefits to the various property variables are as follows: TABLE 10 — APPORTIONMENT OF SERVICES TO PROPERTY VARIABLES Program to be Funded Benefit Zone Apportioned to Variable PROWSO: • Maintenance Personnel 1 '% to all building square footage (81,610) 1/2 to all lot size in Benefit Zone 1 • Maintenance Personnel 2 '/z to all building square footage, ($50,890) '/z to all lot size in Benefit Zone 2 • Non -personnel, equipment 1,2 All linear frontage, apportioned ($40,500) Equally in both Benefit Zones DISTRICT IDENTITY AND STREETSCAPEIMPROVEMENTS: • Special events (1 per year) 1 Building square footage "a" only ($5,000) • Logo creation 1,2 Building square footage a-c ($1,000) Building square footage a-c • Web site creation/maintenance 1,2 ($4,000) • Pedestrian kiosks/signage 1,2 Building square footage a-d ($4,000) ADMINISTRATION AND CORPORATE 1,2 Apportioned equally to all lot size OPERATIONS ($41,000) in both zones CONTINGENCY / RESERVE 1,2 Apportioned equally to all lot size ($14,790.82) in both zones The assessment methodology annual costs are summed up in the following table: TABLE 11- ANNUAL COSTS PER SPECIAL BENEFIT SERVICE AND BENEFIT ZONE Benefit Zone Lot Square foot annual costs Building square foot annual costs Linear frontage annual costs Contribution to total budget 1 $0.0841 a. $0.1886 b. $0.1696 c. $0.1696 d. $0.1577 e. $0.1485 f. $0.1485 g. $0.1485 $1.8264 $146,565.45 Benefit Zone Lot Square foot annual costs Building square foot annual costs Linear frontage annual costs Contribution to total budget 2 $0.0757 a. $0.1697 b. $0.1697 c. $0.1697 d. $0.1578 e. $0.1485 f. $0.1485 g. $0.1485 $1.8264 $96,225.37 Both Condos and Single family homes $ 240.00 per year per unit Approximately $146,565.45 (60%) of the assessments will be generated from parcels within Benefit Zone 1. The balance, $96,225.37 (40%) will be generated from Benefit Zone 2 parcels. CONDO FACTOR: It is unknown at this point how much future condos will contribute to the district. Since the condos are being built in mixed use or commercially zoned areas, they are nor exempt from payment into the assessment district. The condo owners will derive and appreciate the special benefit services they will receive from the cleaning and beautification services in the district. Provisions will be made to avoid a property variable and unit assessment for condos. Once a parcel or parcel(s) have been converted to condos, the per unit fee will kick in, however that parcel will have its linear frontage, building square footage and lot size deleted as a variable to be assessed. For example, if a 5,000 square foot lot is converted from a parking lot to a 10 unit condo development, that parcel will be reassessed to capture the $2,400 condo assessments annually now generated from that parcel (10 x $240.00 per year.) Simultaneously, the property variables of that parcel will be eliminated from the overall PBID database so the new condo owners are not doubly assessed for their property variables and condo units. Condos and residentially utilized single family residences will pay the same flat fee per year into the district. TABLE 12- DOWNTOWN NATIONAL CITY PBID FIRST YEAR COSTS BY PROPERTY VARIABLE PROPERTY VARIABLE ANNUAL COST BENEFIT ZONE 1 ANNUAL COST BENEFIT ZONE 2 TOTAL GENERATED BY VARIABLE Lot Square Footage $0.0841 per square foot per year $0.0757 per square foot per year $119,868.98 Building Square Footage (range) $0.1485-$0.1886 per square foot per year $0.1485-$0.1697 per square foot per year $80,261.42 (33%) Linear Frontage $1.8264 per linear foot per year $1.8264 per linear foot per year $40,500.42 (17%) Single Family Home And Condo Annual Fee $240.00 $240.00 $2,160.00 (1%) Total Annual Budget $242,790.82 TABLE 13- AMOUNTS GENERATED BY DONWTOWN NATIONAL CITY PBID Property Variable Total Gross Variable, Both Benefit Zones Amount Generated First Parcel or Lot Size 1489,289 $119,868.98 Building Square Feet 446,214 $80,261.42 Linear Frontage 22,175 $40,500.42 Single Family Home And Condo Annual Fee 9 $2,160.00 Total Assessments, First Year -Both Zones $242, 790.82 PART V RELEVANT ENABLING LEGISLATION, AB 1021 The relevant enabling PBID legislation, which allows the property owners of Downtown National City to fund these special benefit services, is to be found in o Section 36600 of the California Streets and Highway Code known as the Property Business Improvement District Law of 1994. (Amended in 2000, 2003) On July 20, 2001, Governor Gray Davis signed AB 1021, approving changes to the Property Business Improvement District Law of 1994, (Cal. Streets and highway Code Sections 36600 et. Seq.) which changes several procedures involving PBIDs. The law became effective on January 1, 2002. The major change within the law is the establishment of an "Owner's Association." This Association will be a private, non-profit entity that will contract with the City to manage the PBID. It will be subject to the Brown Act (Ca. Government Code Sections 6250 et seq.) However, the Association will not be considered as a public entity for any other purpose. Similarly, any board members or staff will not be considered public officials. Under the amended law, all property owners who do not pay assessments will be subject to penalties for delinquent payments. The amended statute also provides provisions for renewal of the PBID. If the PBID is renewed after its first term (up to five years), the funds from the prior district may be used in the renewed district only for the benefit of the parcels within the boundaries of the prior district. If no parcels from the prior district are within the renewed district, the funds must be returned to the property owners. Also, upon renewal, a district may be renewed for up to ten years. These changes clarify issues regarding PBID operations and formation and the status of the non-profit organizations that manage PBIDs in the aftermath of the court ruling in Epstein vs. the Hollywood Entertainment District. The Epstein decision classified non-profit organizations that managed PBID's as public entities for purposes of the Brown Act. The issue has been raised that if the organizations were public entities for the Brown Act, could they also be public entities for other acts, such as the Political Reform Act. The changes in the new legislation ensure that these PBID and BID Management Corporations are not considered public entities for any California la except the Ralph M. Brown Act and the Public Records Act. Proposition 218 (Article XIII D of the state constitution) states in Section 4 (a): "No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional benefit conferred on that parcel. Only special benefits are assessable, and an agency must separate the general benefits from the special benefits conferred on a parcel." FORMATION: ■ District formation requires submittal of petitions from property owners representing at least 50% of the total assessment. The "Right to Vote on Taxes Act" (Proposition 218) requires that more than 50% of the ballots received, weighted by assessment, be in support of the District. • This petition support ensures that the mail ballot procedure will be successful in the formation of the district. Once the necessary thresholds of petitions have been collected, the management district plan will then be submitted to the City to begin processing the public hearing. With the adoption of an ordinance of intention, the City Council will Authorized the City Clerk to send out the mail ballots to all affected property owners to determine their support for the establishment of the district. • When all is said and done, the first assessment should be collected with the annual property tax bill in December 2004 with the Management Corporation receiving its first installment payment in January 2005. DURATION: • Pursuant to State Law, the District will have a set term. The proposed district will have a five-year life commencing January 1, 2005. After five years, the petition process must be repeated for the District to be re-established. TIME LINE AS SPECIFIED BY LAW: The district must be established to take advantage of the County's tax assessment notification schedule. Mindful of that, all property related assessment district must be established by the end of July in any calendar year, in order to have assessments levied on parcels for the upcoming fiscal year. In our case, the district must be established through an assessment ballot proceeding in late July 2004, inorder to notify the County in time for the 2004-05 fiscal tax year. The first assessments would then appear on the property tax statements due in December 2004. In order to take advantage of this schedule, as well as to generate revenues in early 2005, the following time line has been adopted to ensure timely funding of special benefit programs: To work effectively, we must look at the completion date and work backwards: Date must be completed by Task to be completed July 20th, 2004 Public hearing/assessment balloting proceeding, ballots Counted by weight June 8th Resolution of intent by City to establish the district May 1st — May 31st Property owners representing 50% of the weight, based Upon assessments to be delivered, must sign petition endorsing April 30th Finalize management district plan including special benefit services to be provided, duration of district, boundaries, Benefit zones, assessment methodology, administration, etc. Initiate petition drive April 20, 2004 First rough draft Management District Plan submitted to PBID Steering Committee PART VI ENGINEER'S REPORT, EXEMPTIONS, ANNUAL ASSESSMENT INCREASES AND THE DURATION OF THE DISTRICT A. Assessment Methodology Property owners in Downtown National City have emphasized that an assessment formula for a PBID be fair, balanced and commensurate with special benefits received. NEW CITY AMERICA has contracted with Ed Henning and Associates to come up with a plant that has been certified by a licensed engineer. In preparing the engineer's report for the Downtown National City PBID, the engineer concluded that the special benefit to each parcel was found to be proportional to the property variable and their apportionment. An Engineer's report for the PBID is provided in the Appendix. B. Time and Manner for Collecting Assessments: As provided by state law, the Downtown National City Property Business Improvement District will appear as a separate line item on the annual property tax bills prepared by the San Diego County Tax Assessor. Property tax bills are generally distributed in the Fall and payment is expected by lump sum or in two installments. The County Assessor shall distribute the assessments to the City who will in turn then forward them to the designated Downtown National City PBID Management Corporation pursuant to the authorization of this plan. Existing law for enforcement of property taxes apply to the Management District assessments. The assessments shall be collected at the same time in the same manner as for any possessory interest tax paid to the County of San Diego. These assessments shall provide for the same lien priority and penalties for delinquent payment as is provided for the possessory interest tax. The "property owner" of the possessory interest shall be any person as the owner/taxpayer on the last equalized possessory interest assessment roll or otherwise known to be the owner/tax payer by the City Council. The City Council has no obligation other information as to the ownership of the interest, and its determination or ownership shall be final and conclusive for the purposed of this district. C. Publicly Owned Parcels and Government Assessments: The Downtown National City PBID Steering Committee assumes that the City of National City, The Community Development Commission, Southwestern College, the County, the Unified School District, the State of California and any other publicly owned parcels will pay assessments for the special benefits conferred upon government owned property within the boundaries of the PBID. Article XIII D of the California Constitute, (Proposition 218), explains the basis for assessing publicly owned parcels: "Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt form Assessments unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. D. Annual Assessment Adjustment: The PBID Management Corporation, will be granted the option of increasing the assessments annually based upon the Customer Price Index of San Diego County or by a flat amount, not to exceed 5% per year. E. District Duration: Pursuant to State PBID Law, the Downtown National City PBID will have duration of five years, commencing on January 1, 2005 and extending through December 315T 2009. This is the maximum period allowable for a new PBID under state legislation. Any continuation of the District after its five-year period will require compliance with all regulations and statutes in place at the time relative to the establishment of the new PBID. PART VII DISTRICT GOVERNANCE AND THE DOWNTOWN NATIONAL CITY P.B.I.D. MANAGEMENT CORPORATION A few rules and regulations should be considered by the Downtown National City PBID Management Corporation in the administration of the district. • Conflict of Interest: Any stakeholder who serves on the administering corporation's Board of Directors shall recuse himself or herself from any vote in which a potential conflict of interest is apparent. Such potential conflicts include, but are not limited to, prioritizing capital improvement projects which result in special benefit to specific property owners, prioritization of services to benefit a particular owner or group of owners, hiring or selecting the relatives of Board members, etc. In addition, the Management Corporation shall aim to meet the following operational objectives for the district.... • Create and manage programs that best respond to the top priorities of district property owners; • Maximize coordination of the City government to avoid duplication of services and to leverage resources; • Deliver services through a cost-effective, non -bureaucratic and easy to access organizational structure; • Provide accountability and responsiveness to those who pay through open access to Board meetings, elections to the Board and Board records. APPENDIX A MAP OF THE DISTRICT 09:40 FAb 610 252196 UNIT M6 38690 Sabibtt IPU n� »,� rinnc n2.1'2 AAA ° 6 of 6