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2005 08-16 CC AGENDA PKT
Agenda Of A Regular Meeting National City City Council Council Chambers Civic Center 1243 National City Boulevard National City, California Regular Meeting - Tuesday — August 16, 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 lnzunza 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 interpretacidn en espafiol se proporciona durante sesiones del Consejo Municipal. Los audiofonos estan disponibles en el pasillo al principio de la junta. lit 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 8/16/05 PAGE 2 PRESENTATIONS 1. Employees of the Month Program: Angela Randolph, Senior Office Assistant — City Council Office Ginny Orcutt, Executive Assistant — City Attorney's Office Lin Wurbs, Assistant City Manager — City Manager's Office 2. County Treasurer —Tax Collector's Annual Report 2005 — Dan McAllister 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 Special Meeting of May 3, 2005 and Regular Meeting of June 7, 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 Council of the City of National City authorizing the Mayor to sign the amended and restated Joint Exercise Powers Agreement for Heartland Communications. (Fire) 6. Resolution authorizing the Mayor of National City to execute the California Identification User Agreement between the County of San Diego and the City of National City. (Police) 7. Resolution of the City of National City approving additional inspection services supplemental agreement with Tetra Tech, Inc. in the amount of $9,818 for National City Boulevard, 7th Street to 12th Street improvements, Spec No. 4-12 and authorizing the City Engineer to approve and sign the change order. (Engineering) COUNCIL AGENDA 8/16/05 PAGE 3 CONSENT CALENDAR (Cont.) 8. Resolution approving a supplemental agreement for additional civil engineering design services with BDS Engineering, Inc. in the amount of $88,620 for the National City Sanitary Sewer Rehabilitation on 22'd Street and authorizing the City Engineer to sign the agreement. (Engineering) 9. Resolution of the City of National City approving Contract Change Order Number 2, accept the work and authorize the filing of a Notice of Completion for the National City Resurfacing Project FY 03-04, Spec No. 03-11 in the amount of $33,238.72 with Frank and Son, Inc. for costs attributable to deteriorated conditions in the base and pavement and replacement of expansive soil base material on E. 16th and L Avenue to N Avenue and authorizing the City Engineer to sign the change order. (Engineering) 10. Resolution authorizing the Mayor to execute an agreement with D-Max Engineering Inc. in the amount of $200,000 in order to continue providing the City with engineering and environmental services and assist implementing National Pollutants Discharge Elimination System (NPDES) permit requirements. (Engineering) 11. Resolution of the City Council of National City approving an Agreement with Richard Becker Sculpture for $70,000 to design, fabricate and install an art piece on the property of National City's main Fire Station #34. (Community Services) 12. Resolution of the City Council of the City of National City awarding a contract to MJC Construction in the amount of $1,008,900 for the construction of the first phase of the Paradise Creek Educational Park Project, Specification 04-5. (Public Works/Community Service) 13. Resolution authorizing the Mayor to sign Freeway Maintenance Agreement 11- 8282 between the City and the State of California by and through its Department of Transportation for the maintenance of portions of the bike path over and adjacent to the Sweetwater River channel on the west side of Route 5 and within the City of National City. (Public Works) 14. Resolution requesting that the Public Employees' Retirement System (CaIPERS) waive the 960-hour rule and allow a temporary employment extension for Interim Finance Director Bill Yeomans. (Human Resources) COUNCIL AGENDA 8/16/05 PAGE 4 CONSENT CALENDAR (Cont.) 15. WARRANT REGISTER # 03 (Finance) Ratification of Demands in the amount of $2,375,437.51 16. WARRANT REGISTER # 04 (Finance) Ratification of Demands in the amount of $590,625.65 17. WARRANT REGISTER # 05 (Finance) Ratification of Demands in the amount of $1,722,961.86 18. Request to use the Martin Luther King, Jr. Community Center by the National City Collaborative and waiver of fees for their "Neighborhood Resource Fair" on September 22, 2005. (Community Services) TEMPORARY USE PERMITS 19. Temporary Use Permit — Common Man Wealth Industries/Kids Say Nope to Dope — Nope to Dope Park Rally — Saturday, August 27, 2005, 11 a.m. to 4 p.m. at Las Palmas Park. (Building & Safety) 20. Temporary Use Permit — St. Mary's Catholic Church Fall Festival/Fund Raiser October 9, 2005 at 8th Street and E, National City, California 91950 (Building & Safety) 21. Temporary Use Permit — American Diabetes Association, Feria; Unidos Contra La Diabetes, November 6, 2005 at Kimball Park 10 a.m. to 3 p.m. (Building & Safety) ORDINANCE FOR INTRODUCTION 22. 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 known as "Payday Lenders," and repealing Ordinance No. 2004-2254. (City Attorney) COUNCIL AGENDA 8/16/05 PAGE 5 NON CONSENT RESOLUTIONS 23. Plaza Boulevard Widening Project Status Report and Resolution of the City Council of National City approving and authorizing the City Engineer and Planning Director to execute the initial study with proposed mitigated negative declaration/environmental assessment with a finding of no significant impact. (Engineering) 24. Resolution of the City Council of the City of National City adding Policy Number 711 to the City Council Policy Manual, establishing a policy for the issuance of taxicab permits and medallions. (City Attorney) PUBLIC HEARING 25. Public Hearing — Modification of a Conditional Use Permit for Cornerstone Church at 1920 Sweetwater Road to expand church services and add a school and adult day care. (Applicant: Pastor Sergio De La Mora) (Case File No.: MI-CUP-2003- 20) (Planning) NEW BUSINESS 26. Metro JPA Representative Councilman Natividad — Report to the Council (Report by Public Works Director Robert Saucedo and Wastewater Maintenance Supervisor Joe Smith. 27. Notice of Decision — Zone variance for Tess than required drive aisle widths in the parking lot at the Sweetwater Town and Country Shopping Center. (Applicant: Pedro Garcia) (Case File No.: Z-2005-2) (Planning) 28. Notice of Decision — Planning Commission approval of a Conditional Use Permit for a wireless communications facility in an existing shopping center at 1035 Harbison Avenue. (Applicant: NEXTEL Communications — Tim Kolset) (Case File CUP-2005-3) (Planning) 29. National City Transit Monthly Report — August — 2005 (John P. Webster, Sr., General Manager, National City Transit) COUNCIL AGENDA 8/16/05 PAGE 6 NEW BUSINESS (Cont.) STAFF MAYOR AND CITY COUNCIL CLOSED SESSIONS 1. Conference with Legal Counsel — Existing Litigation — Government Code 54956.9(a) Rene Love v. City of National City, et al San Diego Superior Court Case No. GIS 17929 2. Conference with Legal Counsel — Anticipated Litigation Initiation of Litigation Pursuant to Government Code Section 54956.9(c) Three Potential Cases. Next Regular City Council Meeting — Tuesday — September 6, 2005 - 6:00 p.m. — Council Chambers, Civic Center TAPE RECORDINGS OF EACH CITY COUNCIL MEETING ARE AVAILABLE FOR SALE IN THE CITY CLERK'S OFFICE ITEM #1 8/16/05 City of National City Human Resources Department 1243 National City Boulevard National City, CA 91950-4301 Phone: (619) 336-4300 MEMORANDUM DATE: August 4, 2005 TO: Chris Zapata, City Manager FROM: Alfredo J. Lopez III, Director of Human Resources 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 perform at high standards of work conduct and provide significant contributions to the workplace and community. For the month of August 2005, the Department's that were due to nominate staff were: City Council Office, City Clerk's Office, City Attorney's Office and City Manager's Office. In previous years, only one employee was selected from these four Departments. However, this year, and due to the valuable work of each employee listed below, the City wanted to recognize three employees. The employee's selected for the Employee of the Month Program in August, 2005, are: • Angela Randolph, Senior Office Assistant — City Council Office • Ginny Orcutt, Executive Assistant - City Attorney's Office ■ Lin Wurbs, Assistant City Manager - City Manager's Office* (*Please note: Management employees are not typically part of the Program. However, IIuman Resources agreed to waive the eligibility criteria to honor the City Manager's nomination to recognize Ms. Wurb's for noteworthy performance). Page Two August 4, 2005 Employee of the Month Program By copy of this memo, the above listed employees are requested to attend the City Council meeting on Tuesday, August 16, 2005, so that they may be recognized in public for their achievements and service to our great City. Alfredo J. Lopez III Human Resources Director cc: City Council George Eiser, City Attorney Human Resources — Office File Lin Wurbs, Assistant City Manager Ginny Orcutt, Executive Assistant Angela Randolph, Senior Office Assistant James Slade, MEA President ITEM #2 8/16/05 County Treasurer — Tax Collector's Annual Report 2005 — Dan McAllister — ITEM #3 8/16/05 Approval of the Minutes of the Special Meeting of May 3, 2005 and the Regular Meeting of June 7, 2005 ITEM f4 8/16/05 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 MEETING DATE 08/16/05 City of National City, California COUNCIL AGENDA STATEMENT AGENDA ITEM NO. 5 ITEM TITLE A Resolution of the City Council of the City of National City Authorizing the Mayor to Sign the Amended and Restated Joint Exercise of Powers Agreement for Heartland Communications Facility Authority PREPARED BY DEPARTMENT Roderick Juniel, Fire EXPLANATION Fire Chief (336-4550) The City has contracted with Heartland Communications Facility Authority (HCFA) for fire, rescue, and emergency medical aid dispatch services since February 7, 1995. To ensure the continued delivery of these services at reasonable rates, the City of National City became a member of the Heartland Communications Facility Authority Joint Powers Authority JPA) effective July 1, 2003. National City Councilmember Frank Parra is a voting member of the JPA. HCFA was formed on June 25, 1986 as a Joint Powers Authority comprised of the Cities of El Cajon, Lemon Grove, Santee, and La Mesa and the Alpine Fire Protection District, Bostonia Fire Protection District (now East County Fire Protection District), Lakeside Fire Protection District, and the San Miguel Fire Protection District. The Amended and Restated Joint Exercise of Powers Agreement for Heartland Communications Facility Authority is the final agreement document and has been reviewed and approved by National City City Attorney George Eiser, and the rest of the current members of the JPA (Alpine, Bonita, Coronado, East County, El Cajon, Imperial Beach, La Mesa, Lakeside, Lemon Grove, San Miguel and Santee). The agreement document will now be submitted to the State. 1-Environmental Review Financial Statement Funds in the amount of $194,243 are budgeted in the Fiscal Year 2006 Budget for dispatching services provided by the Heartland Communications Facility Authority. X N/A >STAFF RECOMMENDATION Approve Resolution authorizing the Mayor to sign the Amended and Restated Joint Exercise of Powers Agreement for Heartland Communications Facility Authority. BOARD / COMMISSION RECOMMENDATION N/A Account N@R1-412-125-299 ATTACHMENTS ( Listed Below ) Resolution No. 1. Resolution. 2. Amended and Restated Joint Exercise of Powers Agreement for Heartland Communications Facility Authority. A-200 (9/80) RESOLUTION 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE THE AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT FOR HEARTLAND COMMUNICATIONS FACILITY AUTHORITY WHEREAS, National City has contracted with the Heartland Communications Facility Authority ("HCFA") for fire, rescue and emergency medical aid dispatch services since February 7, 1995; and WHEREAS, to ensure the continued delivery of these services at reasonable rates, the City became a member of HCFA effective July 1, 2003. The other agency members of HCFA are the Cities of El Cajon, Lemon Grove, Santee, Coronado, Imperial Beach and La Mesa, and the Fire Protection Districts of Alpine, East County, Lakeside, San Miguel and Bonita-Sunnyside; and WHEREAS, California Government Code Section 6500, et seq., permits the joint exercise of certain powers common to member agencies, such as the power to acquire sites, and construct, equip, staff, maintain, operate and lease public buildings and related facilities for the purpose of communications; and WHEREAS, the Joint Exercise of Powers Agreement for Heartland Communications Facility Authority empowers the member agencies to exercise these powers jointly by equipping, maintaining, operating and staffing a facility, and providing emergency call receiving and dispatching services to said members; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute the Joint Exercise of Powers Agreement for Heartland Communications Facility Authority which empowers the member agencies to exercise their powers jointly by equipping, maintaining, operating and staffing a facility, and providing emergency call receiving and dispatching services to said members. Said Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 16`h day of August, 2005. Nick Inzunza, Mayor ATTEST: APPROVED AS TO FORM: Michael Dalla, City Clerk George H. Eiser, III City Attorney AMENDED AND RESTATED JOINT EXERCISE of POWERS AGREEMENT for "HEARTLAND COMMUNICATIONS FACILITY AUTHORITY" THIS AGREEMENT, originally made and entered into the 25th day of June, 1986, and most recently amended the day of , by and between the CITY OF EL CAJON, CITY OF LEMON GROVE, CITY OF SANTEE, CITY OF LA MESA, ALPINE FIRE PROTECTION DISTRICT, EAST COUNTY FIRE PROTECTION DISTRICT, LAKESIDE FIRE PROTECTION DISTRICT, SAN MIGUEL FIRE PROTECTION DISTRICT, BONITA-SUNNYSIDE FIRE PROTECTION DISTRICT, CITY OF CORONADO, CITY OF IMPERIAL BEACH, and CITY OF NATIONAL CITY, (collectively the "Member Agencies" and individually "Member Agency"), all of which are organized and existing under and by virtue of the laws of the State of California. WITNESSETH: WHEREAS, the Member Agencies are each empowered by law to acquire sites, construct, equip, staff, maintain, operate and lease public buildings and related facilities for the purpose of communications; and WHEREAS, the Member Agencies desire to provide fire communication and related services, and equip, staff, and operate a regional public safety services communications facility, and to provide a vehicle for the accomplishment thereof; and WHEREAS, the Member Agencies desire to accomplish the aforesaid purpose by jointly exercising their common powers in the manner set forth in this Agreement; and WHEREAS, the Member Agencies are authorized to jointly exercise their powers pursuant to the provisions of Article 2, Chapter 4, Part 2, Division 2, Title 5, Sections 55631 through 55634, and Article 1, Chapter 5, Division 7, Title 1, Sections 6500 through 6530, of the Government Code of the State of California; and NOW, THEREFORE, the Member Agencies, for and in consideration of the mutual benefits, promises, and agreements set forth herein, AGREE as follows: SECTION 1. Purpose. This Agreement is made pursuant to California Government Code Section 6500, et seq., hereinafter referred to as the "Act," to permit the joint exercise of certain powers common to Member Agencies. The purpose of this Agreement is to exercise these powers jointly by equipping, maintaining, operating and staffing a facility and providing 1 emergency call receiving and dispatching services to said Member Agencies. Such purpose will be accomplished and common powers exercised in the manner set forth in this Agreement. This Agreement shall continue the obligations of the Member Agencies under the previous Agreement, which formed this Joint Powers Authority, along with all Amendments thereto. All pre-existing obligations, rights, and privileges of the Member Agencies shall continue hereunder, subject to the terms and conditions of this Agreement. SECTION 2. Term. This Agreement shall become effective as of the date hereof and shall be binding upon all parties hereto, until the close of the third full fiscal year following said effective date, and shall thereafter continue in full force and effect as long as the number of Member Agencies is not reduced below two (2), or until such time as the Agencies agree to terminate the Agreement, in the manner set forth in SECTION 8. SECTION 3. Authority. A. Creation of Authority. Pursuant to Section 6506 of the Act, there is hereby created a public entity, separate and apart from the Member Agencies, to be known as the "Heartland Communications Facility Authority" (hereinafter "Authority"). The debts, liabilities, and obligations of the Authority shall not constitute debts, liabilities, or obligations of any of the Member Agencies, or as an individual agency, except as set forth in this Agreement. B. Commission. The Authority shall be governed by a Commission, which shall be called the "Heartland Communications Facility Commission" (hereinafter "Commission") and which shall exercise the powers set forth in Section 4(B) of this Agreement. Each Member Agency which is a party to this Agreement shall have one primary designated seat and one alternate seat on the Commission, and shall fill such seat by appointment from its governing body, in accordance with the Member Agency's policies and procedures. A Commissioner shall serve at the pleasure of the appointing Member Agency, except such appointee shall cease to be a Commissioner if he/she ceases to be a member of the governing body of the appointing Member Agency, or if the appointing Member Agency ceases to be a party to this Agreement. Each appointing Member Agency shall notify the Secretary of their respective appointments. The Secretary shall notify each Member Agency of the appointments of the other parties. C. Board of Chiefs. Pursuant to Section 6508 of the Act, there is hereby created an administrative entity, immediately subordinate to the Commission, to be known as the "Board of Chiefs" (hereinafter "Board," whose members are hereinafter referred to as "Chief(s)") 2 and which shall exercise the powers set forth in Section 4(C) of this Agreement. Each Member Agency shall have not more than two seats on the Board, to be filled by the respective Agency's Fire Chief or his or her designee, if the Authority provides fire dispatch services, and by the Police Chief, if police dispatch services are provided. A Chief or his or her designee shall serve at the pleasure of the Member Agency of which he/she is a representative, except he/she shall cease to be a Chief if he/she ceases to be the Fire Chief, Police Chief or their designee for the Member Agency, or if such Member Agency ceases to be a party to this Agreement. Each of the Member Agencies shall notify the Secretary of the names of its respective Chiefs, as applicable. D. Administration. The Authority may employ a Director (hereinafter "the Director"). The Director shall be authorized to act on behalf of the Commission in all matters of personnel administration. With oversight by the Board, the Director shall implement the budget established by the Commission and the operations program established by the Board. E. Meetings of the Commission and the Board. (1) Regular and Special Meetings of the Commission. The Commission shall provide for its regular meetings; however, it shall hold at least one regular meeting immediately prior to each April 30, at which meeting the Commission shall consider and adopt the preliminary budget for the Authority, with final adoption by July 31 st, for the ensuing fiscal year. The Commission shall provide for such further meetings, as may be needed, depending upon the pressure of business or as may reasonably be requested by any Commissioner. The date, hour, and location at which any regular meeting shall be held shall be fixed by resolution, and a copy of such resolution shall be filed with each of the Member Agencies. (2) Regular Meetings of the Board. The Board shall provide for its regular meetings; however, it shall hold at least one regular meeting each quarter. The Board may provide for further meetings, as may be needed, depending upon the pressure of business or as may reasonably be requested of the Chair of the Board by a majority of the Chiefs. The date, hour, and location at which regular meetings shall be held shall be fixed by resolution, and a copy of the resolution shall be filed with each of the Member Agencies. (3) Ralph M. Brown Act. The Commission and the Board shall adopt rules for conducting their meetings and other business. All meetings of the Commission and the Board, including without limitation regular, adjourned regular, and special meetings, shall be called, noticed, and conducted in accordance with the provisions of the Ralph M. Brown Act (commencing with Section 54950 of the Government Code of the State of California). 3 (4) Minutes. The Secretary shall cause minutes of regular, adjourned regular, and special meetings to be kept, and shall, as soon as possible after each meeting, provide a copy of the minutes to each Commissioner and each Chief, respectively, and to each of the Member Agencies. (5) Quorum. A majority of the Commission and/or Board shall constitute a quorum for the transaction of business. A lesser number of each body may adjourn for lack of a quorum. A majority vote of the Commission or the Board is required to take action. F. Officers and Respective Duties. (1) Chair and Vice Chair of the Commission. The Commission shall elect a Chair and Vice Chair at its first regular meeting, and thereafter, at the first regular meeting held in each succeeding calendar year, the Commission shall elect or re-elect its Chair and Vice Chair. In the event the Chair or Vice Chair so elected ceases to be a Commission Member, the resulting vacancy shall be filled at the meeting of the Commission held after such vacancy occurs. In the absence or inability of the Chair to act, the Vice Chair shall act as Chair. The Chair, or in his/her absence the Vice Chair shall preside and conduct all meetings of the Commission. (2) Secretary of the Commission. The Director shall be the Secretary of the Commission. The Secretary will keep minutes and will prepare an agenda for each meeting of the Commission and the Board. The Secretary will solicit agenda items for regular meetings at least fifteen working days in advance, and will distribute the agenda and supporting documentation in accordance with the provisions of the Ralph M. Brown Act. The Secretary will meet jointly with the Chair of the Board of Chiefs and Chair of the Commission at least ten working days in advance to develop the agenda. Agenda items will be supported by appropriate documentation and explanation. The Secretary will deliver the agenda and supporting documentation to each Commissioner, to each officer of the Authority, and to the Chair of the Board at least five working days prior to the scheduled meeting. (3) Attorney of the Authority. The Attorney to the Authority shall be the one selected by the Commission and serve at the will of the Commission. The Attorney shall advise the Commission in connection with any business relating to the Authority. The Commission may, as determined necessary, employ other counsel to represent and/or advise the Commission on business and/or other litigation. 4 (4) Treasurer/Controller of the Authority. The Treasurer/Controller shall be appointed by the Commission and attend the meetings of the Commission, and advise the Commission in connection with any accounting, budgetary, monetary, or other financial matters relating to the Authority. The duties and responsibilities of the Treasurer/Controller include, but are not limited to, those set forth in Government Code Sections 6505, 6505.5, and 6509.5, and shall include the following: (a) Establish, with the Commission's approval, the annual budget format, accounts, and documentation pertaining thereto, which most nearly reflect the objectives of the Authority and the operation of the communications program; (b) Establish and maintain the particular funds and accounts as required by generally accepted accounting practices and which most accurately and appropriately record and report the operations of the Authority as represented by the annual budget document; (c) Enforce strict compliance with the approved annual budget and approve only expenditures authorized therein; (d) Ensure that all available cash on hand is at all times fully invested in a cash management program and investment portfolio pertaining thereto, in accordance with the provisions of California Government Code Section 53600 et seq.; he/she will further ensure that sufficient liquidity is maintained to meet the Authority's cash disbursement needs; (e) Furnish quarterly revenue, expenditure, and funds status reports to the Chair of the Commission; (f) Maintain an inventory of all property of the Authority, and may designate the Authority Director as the custodian of such property; (g) With advice from the Commission, obtain and maintain liability and casualty insurance for the Authority and for the property of the Authority, respectively; and (h) Make all books and records of the Authority in his/her hands open to inspection at all reasonable times by representatives of the Member Agencies. (5) Chair and Vice Chair of the Board. The Board shall elect a Chair and Vice Chair at its first regular meeting of each calendar year. In the event that the Chair or Vice Chair so elected ceases to be a Chief, the resulting vacancy shall be filled at the meeting of the Board held after such vacancy occurs. In the absence or inability of the Chair to act, the Vice Chair shall act as Chair. The Chair, or in his/her absence, the Vice Chair, shall preside at and conduct all meetings of the Board. 5 (6) Secretary of the Board. The Director shall be the Secretary of the Board. The Secretary will keep minutes and will prepare an agenda for each meeting of the Board. SECTION 4, Powers and Duties. A. Authority. The Authority shall have the powers common to the Member Agencies set forth in recitals of this Agreement, to wit: the power to acquire sites and construct, equip, staff, maintain, operate and lease public buildings, and related facilities for the purpose of communications. The Authority is hereby authorized in its own name to perform all acts necessary for the exercise of common powers, including, but not limited to, any or all of the following: (1) To make and enter into contracts; (2) To employ agents and employees; (3) To acquire, construct, manage, maintain and operate any buildings, works or improvements; (4) To acquire, hold, or dispose of property within the County of San Diego; (5) To incur debts, liabilities, or obligations; (6) To receive gifts, contributions and donations of property and funds, services, and other forms of financial assistance, from persons, firms and corporations, and any governmental entity; (7) To rent or lease communications services to public or non-public agencies; (8) To sue and be sued in its own name. Such powers shall be exercised in the manner provided in the Act, and, except as expressly set forth herein, are subject only to such restrictions as are imposed upon the City of El Cajon in the exercise of similar powers, pursuant to Joint Power Act Section 6509. The debts, liability, and obligations of the Authority shall not be the debt, liability, and obligations of Member Agencies, except as provided in Section 5 of this Agreement. The Authority shall exercise aforesaid powers as needed to implement the purpose of this Agreement. Pursuant to Section 6504 of the Act, the Authority is empowered, and by this Agreement required, to assess the Member Agencies to 6 finance the entire operation of the Authority in the manner set forth in this Agreement. The Authority may contract indebtedness for capital items only in the manner otherwise permitted by law. However, Tong -term financing shall be limited to a ten-year period. B. Commission. The Commission, as governing body of the Authority, shall formulate and set policy, including budget and purchasing policies, and shall exercise the powers set forth in SECTION 4. A. of this Agreement to accomplish its purpose. While the Commission retains full control and is responsible for the affairs of the Authority, it shall rely upon the Board for actual program development, implementation, and operation. The normal vehicle by and through which this shall be accomplished is the annual budget, in the manner set forth in this Agreement. C. Board. The Board is the administrative arm of the Commission and is authorized to act on behalf of the Commission as necessary for the ordinary conduct of business. The Board is responsible to the Commission for development of a consolidated regional public safety services communications program, and for the leasing of facilities, acquisition of equipment, personnel staffing, and full-time maintenance and operation of the communications program. The Board shall exercise its authority and responsibilities by and through its Chair, who shall directly supervise the Director, whose appointment is set forth in Section 6 of this Agreement. SECTION 5. Fiscal Year, Financing and Annual Budget. A. Fiscal Year. July 1. The Authority's fiscal year shall be the twelve-month period commencing each The Authority shall operate only under an approved fiscal year budget. The Authority may not operate at a deficit. B. Budget Reserve. The Member Agencies shall pay for the entire operation of the Authority, using the annual expenditure budget determining the total amount of assessment required. Each annual budget shall include a minimum Reserve for Contingency equal to ten percent (10%) of otherwise budgeted and approved expenditures. Money may be expended from this Reserve only with the expressed approval of the Commission. The Reserve shall roll over as the beginning balance of the subsequent fiscal year. The total assessment against the Member Agencies may be reduced by expected revenue from executed contracts for dispatch services to public and non-public agencies and by 7 unexpended/unobligated monies available at the end of the fiscal year prior to the year for which the budget is applicable. C. Assessments, Budget. The Commission, in adopting an annual budget, thereby fixes the assessment against the Member Agencies, which is binding thereon, except as otherwise set forth in this Agreement regarding default or withdrawal. The amount of assessment against an individual Member Agency shall be determined, and specified in the budget, in accordance with criteria set forth in a budget policy established by Resolution. The budget policy shall include, but is not limited to, the following: (1) Operation and Maintenance Expenses. The costs of operating and maintaining a communications facility and the communications/computer equipment housed therein shall include, but are not limited to, personnel salaries and benefits, office and computer supplies and other consumables, payments to lease a facility, and replacement parts necessary to repair equipment due to normal wear and tear from ordinary usage. These expenses shall be shared among the Member Agencies in accordance with the formula of: a 25% weight attached to the number of mobile radios; plus 25% weight for the number of personnel; plus 50% weight for the number of incidents. Each Member Agency's share shall equate to its aggregate percentage as calculated by this paragraph 5(c)(1). The number of mobile radios shall be the count of such radios affixed to all vehicles. The number of personnel shall be the Annual Average Daily Suppression Staffing of the Member Agency's fire department as of each December 31. The number of incidents shall be the total number attributable to the Member Agency during the calendar year preceding the Authority's fiscal year. (2) Capital Expenditures. Capital expenditures shall include the cost of original purchase of communications and computer equipment, hardware and other fixed asset type items, typically having a useful life of more than two years, including equipment improvements and additions, as opposed to replacement parts for ordinary maintenance during the useful life of the capital items. All costs associated with such purchase, such as installation, shall be capitalized. Replacement of equipment at the end of its useful life shall be a capital item. Assessment of Member Agencies for capital expenditures shall be in accordance with the formula for operating expenses set forth in (1), above. Capital expenditures incurred for and unique to a minority of the Member Agencies shall be equally shared by such minority. The Commission may set up special cost allocation for these purchases, but all members funding the purchase must approve of the allocation. 8 (3) Debt Financing. On behalf of the Authority, the Commission may approve purchase of items or improvements using debt financing. The debt shall not be binding on any Member Agency unless the debt was approved by the governing board of such Member Agency. If a Member Agency has approved the debt financing, that Member Agency shall be liable for making payments in accordance with the payment schedule established at the time the member approved the financing. (4) Payment of Assessment. Upon adoption of the fiscal year budget by the Commission, and the forwarding thereof to the governing bodies of the Member Agencies by the Secretary, the assessments fixed therein are automatically due and payable without further notice as follows: July 15: 35% of total assessment October 15: 25% of total assessment January 15: 25% of total assessment April 15: 15% of total assessment The Commission may set a different payment schedule to accommodate the purchase of capital items, if sufficient monies would not otherwise be on hand to pay for such purchases. A five percent late charge shall be imposed upon assessment payments not received by the Authority within forty-five (45) calendar days following mailing of assessments. An additional five percent shall be imposed' if payment is not made within an additional thirty calendar days. If an assessment including late charges is not paid in full within seventy-five calendar days following any scheduled due date, the Member Agency shall be in default and subject to automatic termination from this Agreement as provided under Section 8 of this Agreement. Upon termination of a Member Agency in default, all outstanding obligations or assessments under this Section shall become immediately due and payable. Upon withdrawal by or termination of a Member Agency, payment of debt acquired under this Section shall be governed by Section 8 of this Agreement. D. Budget Administration The Board has the authority to fully implement the approved budget. The Director, with the approval of the Board, may recommend expenditures and budgetary transfers or adjustments. However, neither the Director nor the Board may exceed the personnel staffing authorized in the budget, either in number, position classification, or salary. In addition, neither the Director nor the Board may alter the capital budget, utilize the Reserve for contingency, or increase the total amount of the approved expenditure budget without Commission approval. 9 SECTION 6. Personnel. A. The Authority may employ a Director and any other positions deemed necessary to staff the communications program. The positions must be authorized and funded in the Authority's annual budget. B. The Director, with oversight of the Board, is authorized to act on behalf of the Board in all matters of personnel administration, given the positions and funding authorized by the Commission in the Authority's budget. This includes, but is not limited to, hiring, supervisory direction, performance evaluations, disciplinary matters, and terminations. C. The Board, subject to approval by Commission, may employ a facility manager, to be known as the "Communications Director," and communications dispatchers, to be known as "Fire Communications Dispatchers," and any other positions deemed necessary. The positions must be authorized and funded in the Authority's annual budget. SECTION 7. Dispatch Service to Other Agencies. The Authority may provide dispatch service to public agencies and non-public agencies not a party to this Agreement, but only upon the majority vote of the Commission. Such service shall be by annual contract, executed by the Chair of the Commission on behalf of the Commission. The Commission shall establish by contract, the amount of charge for the service. SECTION 8. Withdrawal; Termination. Each Member Agency shall remain a party to this Agreement, and share in the costs of start-up and operation of the communications program until the close of the third full fiscal year following the effective date of membership. If, in the interim, any Member Agency defaults on payment of any assessment as defined in SECTION 5.C., or otherwise breaches this Agreement, such Member Agency shall be automatically terminated as a party to this Agreement. The terminated Agency remains liable for the defaulted payment and late charges for the balance of the year's assessment, and for assessments for years remaining in the minimum three-year term of agreed participation. Such subsequent assessments will be determined as if the terminated Member Agency were still a party to the Agreement; the assessment will be due and payable in full on July 1 of the fiscal year for which levied. After expiration of the three full years of membership, any Member Agency defaulting on payment shall be automatically terminated and shall be liable for any defaulted payments and late charges. After three full years of membership, a Member Agency may withdraw as a party to this Agreement without penalty commencing on the June 30 of the third full fiscal year 10 following the date of its membership, or on any June 30 thereafter, with one hundred eighty (180) days' prior notice to the Authority. Such withdrawing party shall perform all obligations under this Agreement until the noticed June 30 date of withdrawal. The Authority retains the right to seek legal redress, if necessary, to obtain payment of amounts due. The Authority is entitled to costs and attorney fees related to such legal redress. A terminated Member Agency or an Agency that withdraws forfeits any claim to any assets of the Authority. Notwithstanding the above, any Member Agency which withdraws shall be obligated to pay to the Authority a sum equal to the percentage of said Member's assessment for the fiscal year ending on the date of withdrawal, applied to the total amount of existing long-term debt of the Authority existing on the date of withdrawal. Said payment can be a cash payment of the full amount or periodic payments as long- term debt becomes due and payable. Should the withdrawing Agency choose to pay such amount as the debt becomes due and payable, said Agency shall be responsible for, in addition to the principal payments due, all interest and finance costs. SECTION 9. Dissolution. The Agreement shall terminate and the Authority is thereby dissolved if the number of parties to this Agreement becomes less than two, or if the parties unanimously agree to terminate the Agreement. In either instance, dissolution shall only be effective upon a June 30, but shall in no event be effective until the requirements of SECTION 10 are satisfied. SECTION 10. Disposition of Assets. A. This Agreement may not be terminated and disposition of assets made to parties to the Agreement until the Authority reasonably exhausts all means of collecting any monies due to the Authority. The Commission must formally accept a final accounting prepared by the Treasurer/Controller before any final disposition of net assets may be made, and termination of the Agreement consummated. B. If the cause for termination was reduction of the number of parties to the Agreement to less than two, all net assets of the Authority shall become the property of the sole remaining party to the Agreement. C. If the cause for termination is mutual agreement, the total dollar amount of the net assets shall be apportioned among such parties according to the relative assessments paid by those parties during the entire term of the Agreement. D. In no event shall assets be transferred to Member Agencies until all debts are retired. 11 SECTION 11. Amendment to Agreement. The Agreement may be amended by a majority vote of the Commission only after approval of two-thirds vote of the Member Agencies. The Commission shall initiate any proposed amendment by requesting a formal recommendation from the Board, if applicable. The Commission shall then forward the proposed amendment with its recommendation to the governing body of each party to the Agreement. The proposal shall be accompanied by a copy of the proposed amendment to the Agreement, which shall be adopted, properly executed, and returned to the Commission if the party concurs with the amendment. The Secretary shall notify each party of the resultant action. SECTION 12. Additional Parties to the Agreement. Member Agencies, as defined in the Act, which are not parties hereto, may become parties hereto only (upon approval by the Commission) by amendment to this Agreement as defined in SECTION 11 hereof, and subject to the following terms and conditions. A new Member Agency may be permitted to join the Authority upon a majority vote of the Commission only after approval of two-thirds vote of the Member Agencies. The Commission and the new Member Agency may enter into a separate agreement with respect to the terms and conditions for membership not inconsistent with this Joint Powers Agreement. A. The Commission shall set the annual fee for the additional party and the number of years that this fee will apply. B. The additional party shall pay a buy -in fee as determined by majority vote of the Commission after consideration has been given to the following factors: 1. The book value of the Authority's Tong -term fixed assets (capital expenditures). 2. The book value of the Authority's current assets. 3. The Authority's unappropriated reserves for contingencies. 4. Benefits received by Member Agencies by adding the additional party. 5. Such other facts that the Commission believes are germane to a determination. C. The effective date of the amendment to this Agreement and inclusion as an additional party shall only occur on a July 1. 12 Such Member Agencies which become parties hereto shall be entitled to all the rights and obligations, including three year minimum participation, and shall become a Member Agency as defined in this Agreement. SECTION 13. Severability. Should any part, term, portion, or provision of this Agreement or the application thereof of any person or circumstances, be in conflict with any State or Federal law, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining parts, terms, portions or provisions, or the application thereof to other persons or circumstances, shall be deemed severable and shall not be affected thereby, provided such remaining portions or provisions can be construed in substance to continue to constitute the Agreement that the parties intended to enter into in the first instance. SECTION 14. Hold Harmless. Each Member Agency shall defend, indemnify, and save all other individual Member Agencies and the Member Agency and Authority harmless from any and all claims arising out of that individual Member Agency's negligent performance of this Agreement. Any loss or liability resulting from the negligent acts, errors, or omissions of the Commission, Board, Director, and/or staff, while acting within the scope of their authority under this Agreement, shall be borne by the Authority exclusively. The provisions of this Section 14 shall survive the termination or expiration of this Agreement. SECTION 15. Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the parties hereto. SECTION 16. Notice of State. A notice of the creation of the Authority by this Agreement, and/or any amendments to this Agreement, shall be filed by the Authority with the Secretary of State pursuant to Section 6503.5 of the Act. 13 IN WITNESS THEREOF, the parties hereto have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized, and their official seals to be hereto affixed as of the day and year first above written. CITY OF EL CAJON Attest: City Clerk CITY OF LEMON GROVE Attest: City Clerk CITY OF SANTEE Attest: City Clerk CITY OF LA MESA By: Its: By: Its: By: Its: Attest: By: City Clerk Its: 14 ALPINE FIRE PROTECTION DISTRICT Attest: Secretary EAST COUNTY FIRE PROTECTION DISTRICT Attest: Secretary LAKESIDE FIRE PROTECTION DISTRICT Attest: Secretary SAN MIGUEL FIRE PROTECTION DISTRICT Attest: Secretary By: Its: By: Its: By: Its: By: Its: 15 BONITA-SUNNYSIDE FIRE PROTECTION DISTRICT Attest: Secretary CITY OF CORONADO Attest: City Clerk CITY OF IMPERIAL BEACH Attest: City Clerk CITY OF NATIONAL CITY Attest: By: Its: By: Its: By: Its: By: Its: City Clerk X:\WP\2005\Heartland Communications\DOcuments\JPA - FINAL.doc 16 MEETING DATE City of National City, California COUNCIL AGENDA STATEMENT August 16, 2005 AGENDA ITEM NO. 6 ITEM TITLE Resolution Authorizing the Mayor of National City to execute the CaL-ID user agreement between the County of San Diego and City of National City. PREPARED BY Keith Fifield EXPLANATION 336-4508 DEPARTMENT Police The California Department of Justice maintains an automated system for retaining and identifying fingerprints, palm prints and photos known as the California Identification System and Cal -Photo. The California Penal Code, Section 11112.1 et seq. provides for the establishment of a Remote Access Network ("RAN"), consisting of a statewide network of equipment and procedures allowing local law enforcement agencies direct access to the Cai -ID systems. The San Diego County Sheriffs Department is the County's proprietary agency for San Diego County's CaL-ID/RAN. San Diego County's CaL-ID/RAN is governed by the San Diego County Local CaL-ID/RAN Board, established pursuant to Section 11112.4 of the California Penal Code and is know as the RAN Board. Ca1-ID/RAN provides both tenprint identification, latent identification and photo identification through the use of Local Input Terminals known as "LIT's." The NCPD operates one LIT in the Temporary Holding Facility (THF) at the police facility and uses the Cal -ID fingerprint system and Cal -Photo system to identify criminal suspects and conduct investigations. Access to these systems is critical for the Police Department to provide critical public safety services. (Continued on page 2) Environmental Review N/A Financial Statement Currently allocated in the FY 2005/06 Police Budget. >STAFF RECOMMENDATION Approve the Resolution. Acct. # 001-411-000-299-0000 4/1 Account No. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) A: Copy of the Cal -ID user agreement. Resolution No. A-200 (9/80) Council Agenda Statement Resolution Authorizing the Mayor of National City to Execute the Cal -ID User Agreement Between the County of San Diego and City of National City Page 2 Explanation (Continued) If the City desires to continue to participate in the Ca1/ID RAN, the City must reimburse the County for its yearly proportional share of the annual net operational costs associated with Cal- ID/RAN as detailed in the City Cost section of the attached user agreement. This would also cover any future LIT's such as the one proposed by Human Resources to conduct employment fingerprint checks. The estimated Cal -ID user fee allocation costs for FY2005/06 for National City are $17,419. The Police Department budget for FY 2005/06 allocates $19,000 to cover these costs. Proposal The National City Police Department and Chief Adolfo Gonzales are therefore submitting a request that the City Council authorize the Mayor to execute the attached Cal -ID user agreement so that the City may continue to participate in the Cal-ID/RAN system. The user agreement covers a five year period and shall take effect July 1, 2005, and unless sooner terminated as provided in the agreement, shall terminate on June 30, 2010. RESOLUTION 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE COUNTY OF SAN DIEGO AND THE CITY OF NATIONAL CITY FOR PARTICIPATION IN THE COUNTY'S CALIFORNIA IDENTIFICATION SYSTEM REMOTE ACCESS NETWORK WHEREAS, the State Department of Justice maintains an automated system for retaining and identifying fingerprints, said system being known as the California Identification System ("Cal -ID); and WHEREAS, Penal Code Section 11112.1 et seq. provides for the establishment of a Remote Access Network ("RAN"), consisting of a statewide network of equipment and procedures allowing local law enforcement agencies direct access to Cal - ID; and WHEREAS, the San Diego County Sheriffs Department ("SDSD"), is the County's proprietary agency for San Diego County's California Identification System/Remote Access Network ("Cal-ID/RAN"); and WHEREAS, San Diego County's Cal-ID/RAN is governed by the San Diego County Local Cal-ID/RAN Board ("RAN Board"), established pursuant to Sections 11112.4(a) and (c) of the California Penal Code; and WHEREAS, Cal-ID/RAN provides both tenprint and latent fingerprint identification through the use of Local Input Terminals ("LIT's") and Enhanced Verification Only Terminals ("EVOT's"); and WHEREAS, the National City Police Department ("NCPD") desires to participate in Cal-ID/RAN, and SDSD agrees to provide NCPD access to Cal-ID/RAN for making tenprint and latent fingerprint inquiries pursuant to a written agreement; and WHEREAS, the City Council of the City of National City appropriated $19,000 to fiscal year 2005/2006 Police Budget, Account 001-411-000-299, to fund Cal- ID/RAN expenditures; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the Mayor is authorized to execute an agreement between the County of San Diego and the City of National City for the National City Police Department to participate in San Diego County's California Identification System Remote Access Network. Said Agreement is on file in the Office of the City Clerk. -- Signature Page to Follow -- Resolution No. 2005 — August 16, 2005 Page 2 PASSED and ADOPTED this 16th day of August, 2005. Nick Inzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney 4T1q-0l-(M San Diego County Sheriff's Department William B. Kolender, Sheriff ✓pr'roAfirt, Post Office Box 939062 • San Diego, California 92193-9062 City of National City Purchasing & Contracting Department 2100 Hoover Avenue National City, CA 91950 Dear Purchasing & Contracting: Barry R. Zuniga, l/ndersheriff June 23, 2005 CALIFORNIA IDENTIFICATION SYSTEM/REMOTE ACCESS NETWORK (CAL-ID/RAN) USER AGREEMENT copies of the CAL -ID user agreement between the County of San Diego and the City of are enclosed for your approval. The agreements were approved by the Board of Supervisors on June 14, 2005, and will be signed by the Clerk of the Board after they have been approved by your City Council. Please return all four signed copies of the agreement to: San Diego County Sheriff's Department Contracts Division P.O. Box 939062 San Diego, CA 92193-9062 Attention: Keith Spears Upon execution by the Clerk of the Board, two copies of the agreement will be returned to you. If you have any questions regarding the agreement, please contact Keith Spears at (858) 974-2208. Sincerely, WILLIAM B. KOKENDER, SHERIFF Rosie Pecina, CAL -ID Program Manager Sheriff's Crime Laboratory Enclosures "Keeping the Peace Since 1850" AGREEMENT FOR PARTICIPATION IN SAN DIEGO COUNTY'S CALIFORNIA IDENTIFICATION SYSTEM REMOTE ACCESS NETWORK THIS AGREEMENT ("Agreement") is made and entered into this first day of July, 2005, is by and between the County of San Diego, a political subdivision of the State of California, hereinafter referred to as "COUNTY", and the City of National City a municipal corporation, hereinafter referred to as "CITY". RECITALS A. The state of California Department of Justice maintains an automated system for retaining and identifying fingerprints, palm prints, and photos, said system being known as the California Identification System and Cal -Photo, and hereinafter referred to as "Cal -ID". B. The California Penal Code, Section 11112.1 et seq. provides for the establishment of a Remote Access Network ("RAN"), consisting of a statewide network of equipment and procedures allowing local law enforcement agencies direct access to Cal -ID. C. The San Diego County Sheriff's Department, hereinafter referred to as "SDSD", is the COUNTY'S proprietary agency for San Diego County's California Identification System/Remote Access Network, hereinafter referred to as "Cal-ID/RAN". D. San Diego County's Cal-ID/RAN is governed by San Diego County Local Cal-ID/RAN Board, established pursuant to Section 11112.4 of the California Penal Code, and hereinafter referred to as "RAN BOARD". E. Cal-ID/RAN provides both tenprint identification, latent identification, and photo identification through the use of Local Input Terminals, hereinafter referred to as "LIT's. F. CITY desires to participate in Cal-ID/RAN. NOW, THEREFORE, the parties hereto agree that COUNTY shall provide CaI- ID/RAN services for CITY through the SDSD's LIT site subject to the following terms and conditions. 1. SCOPE OF SERVICE SDSD shall provide Cal-ID/RAN services for CITY, including all tenprint and latent inquiries and photo inquiries. 2. CALCULATION AND PAYMENT OF CAL -ID OPERATIONAL COSTS 2.1. Ongoing Cal -ID operational costs shall include those costs needed to maintain the Cal -ID Program. This includes but is not limited to: 2.1.1. Support personnel costs 2.1.2. Equipment costs 2.1.3. Equipment maintenance 2.1.4. Vehicle costs 2.1.5. Information technology telecommunication maintenance 2.1.6. Services and supplies 2.1.7. Overhead 2.1.8. The cost for replacing the equipment amortized over ten years 2.1.9. Funding for system enhancements authorized by the RAN Board 2.1.10. Other costs necessary for the operation for Cal -ID as authorized by the RAN Board. 2.2. The COUNTY will adjust the Cal -ID operations cost annually and advise the CITY of the amount by March 31 of each year. 2.3. The COUNTY may make a General Fund Contribution to offset Cal -ID Operational Costs. The CITY will be advised of this contribution by March 31 of each year. 2.4. The RAN Board may authorize the transfer of funds from the Cal -ID Trust Fund to offset Cal -ID Operational Costs. The RAN Board will advise the CITY of this contribution by March 31 of each year. 2.5. CaI-ID's annual operations costs minus any Cal ID Trust Fund and County General Fund contributions equals the annual Cal -ID Net Operational Costs. 3. CITY COST CITY shall reimburse -COUNTY for its proportional share of the annual net operational costs associated with Cal-ID/RAN, based upon the following formula: 3.1. The CITY'S percentage of total county population plus the CITY'S percentage of Number of FBI Crimes divided by 2 equals the CITY'S Cal -ID Cost Allocation Percentage. 3.1.1. CITY'S percentage of total County population shall be based on the San Diego Association of Governments (SANDAG) most recent "Population and Housing Estimates," which are revised annually. 3.1.2. CITY'S percentage of Number of FBI Crimes shall be based on SANDAG'S most recent issue of "Crime in San Diego Region," which is published annually 2 3.2. This percentage shall be adjusted annually using the previous year's SANDAG data. The data for the first year of this Agreement has been set forth as Attachment A hereto. 3.3. The annual Cal -ID Net Operational Costs times the CITY'S Cal -ID Cost Allocation Percentage equals the CITY'S Annual Cal -ID costs. 3.4. CITY'S estimated Ca1-ID costs for the first year of this Agreement are calculated on Attachment B, which is hereby made a part of this Agreement. 3.5. The Sheriff of the County of San Diego may, on behalf of COUNTY, annually revise CITY'S estimated Cal -ID costs (Attachment B), based upon the most recent SANDAG population and FBI Crime Statistics in accordance with Section 3.1 and current operational costs specified in 2.1 above. Such estimate, when approved by CITY and the Sheriff, acting on behalf of the COUNTY, shall be made a part of this Agreement as Attachment B. 3.6. CITY shall be billed semi-annually based on its proportional share of the estimated ongoing net operational costs and shall pay COUNTY for the aforementioned costs within thirty days from the date of the invoice for such costs. 3.7. Actual ongoing costs will be calculated at the end of each fiscal year. Any shortages or overages based on actual costs will be transferred to or from the Sheriff's "Fingerprint Trust Fund." 3.8. COUNTY shall maintain a separate accountability for purposes of funding Cal- ID/RAN and shall provide a financial report at the end of each fiscal year. 4. SYSTEM OPERATING POLICIES AND PROCEDURES 4.1. The primary purpose of Cal-ID/RAN shall be to serve all law enforcement agencies in the COUNTY. 4.2. From time -to -time, the RAN Board may add and remove law enforcement agencies from Cal -ID. 4.3. Participating CITIES and COUNTY shall abide by all State and Federal statutes, as well as all policies adopted by COUNTY and State or Local RAN BOARD conceming the security, privacy and dissemination of any and all fingerprint and photo identification data contained in Cal-ID/RAN. 4.4. The COUNTY, in its discretion, may enter into one or more agreements ("Vendor Contracts") with third -party providers of hardware and software to obtain CAL -ID services for the COUNTY, and to provide such services to CITY 3 pursuant to this Agreement. COUNTY shall provide to CITY, and CITY hereby acknowledges receipt of, any such Vendor Contracts pertaining to the services COUNTY provides to CITY under this Agreement. CITY shall observe and abide by all of the contractual duties of COUNTY under any such relevant Vendor Contract. Notwithstanding such undertaking, however, CITY shall have no rights to enforce such a Vendor Contract against the County or any third -party provider, nor may CITY seek damages against any such third -party provider under any theory of contract, including, without limitation, third -party beneficiary principles. 4.5. Operational policy shall be established and modified as deemed appropriate by the RAN BOARD. This policy shall ensure that each user is treated equitably, with primary consideration based on each user agency's service population and crime rate. 4.6. The RAN Board shall resolve any dispute between users over operational policies established by the RAN BOARD. 4.7. COUNTY shall ensure the proper and effective operation and maintenance of equipment used to participate in Cal-ID/RAN. 4.8. COUNTY shall continue forwarding electronic prints submitted via livescans for arrests to the Department of Justice as required by law. 4.9. This Agreement incorporates by reference: California Penal Code Section 11112.1 et seq. and any related legislation enacted thereto; State Department of Justice Cal-ID/RAN Master Plan and any changes thereto; State Department of Justice Cal-ID/RAN Policy Manual and any changes thereto; and the San Diego County Local RAN Board Operating Policies. 5. AMENDMENTS OR MODIFICATIONS This Agreement may only be modified, amended, or otherwise changed by an amendment in writing executed by the CITY and COUNTY. 6. TERMINATION Notwithstanding any other section or provision of this Agreement, either party hereto may terminate this Agreement by giving a one-year advance written notice of intention to terminate. 7. TERM OF AGREEMENT This Agreement shall take effect July 1, 2005 and unless sooner terminated as provided for herein, shall terminate on June 30, 2010. 4 8. INDEMNIFICATION COUNTY shall not be liable for, and CITY shall defend, indemnify and hold COUNTY, its officers, agents and employees, harmless from, any and all claims, demands, liability, judgments, awards, fines, mechanics' liens or other liens, labor disputes, losses, damages, expenses, charges or costs of any kind or character, including attorneys' fees and court costs (hereinafter collectively referred to as "Claims"), related to the performance of this Agreement, arising either directly or indirectly from any act, error, omission or negligence of Contractor or its contractors, licensees, agents, servants or employees, including, without limitation, Claims caused by the concurrent negligent act, error or omission, whether active or passive, of County, its officers, agents, employees and contractors. IN WITNESS WHEREOF, the COUNTY OF SAN DIEGO executes this AGREEMENT pursuant to action taken by its Board of Supervisors, and the City of National City executes this AGREEMENT, pursuant to action taken by the City Council. COUNTY OF SAN DIEGO By By Clerk, Board of Supervisors Mayor APPROVED AS TO FORM AND APPROVED AS TO FORM AND LEGALITY LEGALITY By By Deputy County Counsel City Attorney 5 Attachement A Cal -ID Cost Allocation Based on Population and Crime Fiscal Year 2005-2006 % Of % of County FBI Number County City Population Population of Crimes Crime Mean of %'s Carlsbad 92,995 3.08% 2,433 2.22% 2.65% Chula Visa 209,436 6.94% 8,052 7.36% 7.15% Coronado 26,459 0.88% 699 0.64% 0.76% Del Mar 4,555 0.15% 210 0.19% 0.17% El Cajon 97,643 3.24% 4,804 4.39% 3.81% Encinitas 62,586 2.07% 1,401 1.28% 1.68% Escondido 140,671 4.66%. 6,331 5.79% 5.22% Imperial Beach 27,779 0.92% 1,085 0.99% 0.96% La Mesa 56,050 1.86% 2,412 2.20% 2.03% Lemon Grove 25,592 0.85% 1,084 0.99% 0.92% National City 57,047 1.89% 3,255 2.97% 2.43% Oceanside 173,307 5.74% 7,138 6.52% 6.13% Poway 50,632 1.68% 924 0.84% 1.26% San Diego 1,294,032 42.89% 52,217 47.72% 45.31% San Marcos 67,426 2.23% 1,745 1.59% 1.91% Santee 54,022 1.79% 1,397 1.28% 1.53% Solana Beach 13,431 0.45% 370 0.34% 0.39% Vista 94,048 3.12% 3,361 3.07% 3.09% Unincorporated 469,493 15.56% 10,499 9.60% 12.58% 3,017,204 100.00% 109,417 100.00% 100.00% Population and Crime FBI Crime Numbers based on tables contained in San Diego Association Governments "Crime in the San Diego Region, Annual 2004" Published in April 2005 Attachement B Cal -ID Contract Projections by Agency - FY 2005-2006 Revenue County General Fund Contribution Transfer from Trust Fund User Fees Total Funding Expenses County Salaries and Benefits Allocated Overhead On County Salaries and Benefits Services and Supplies Equipment Replacement Fund San Diego PD In Kind Services Fixed Assets Expense Total Expenses User Fee Allocation City/Jurisdiction Carlsbad Chula Visa Coronado Del Mar El Cajon Encinitas Escondido Imperial Beach La Mesa Lemon Grove National City Oceanside Poway San Diego San Marcos Santee Solana Beach Vista Unincorporated Total User Fees Allocation Percentage 2.65% 7.15% 0.76% 0.17% 3.$1% 1.68% 5.22% 0.96% 2.03% 0.92% 2.43% 6.13% 1.26% 45.31% 1.91% 1.53% 0.39% 3.09% 12.58% 100.00% $716,000 $1,161,432 $716,000 $2,593,432 $1,059,962 $165,354 $716,442 $325,000 $122,374 $204,300 $2,593,432 Estimated FY 2005/06 Cost $18,995 $51,195 $5,426 $1,228 $27,304 $12,010 $37,405 $6,846 $14,542 $6,583 $17,419 $43,918 $9,031 $324, 389 $13,710 $10,981 $2,804 $22,156 $90,058 $716,000.00 City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE August 16, 2005 7 AGENDA ITEM NO. ITEM TITLE Resolution of the City of National City approving additional inspection services supplemental agreement with Tetra Tech, Inc. in the amount of $9,818 for National City Blvd. 7th St to 12th St. Improvements, Spec. No. 4-12 and authorizing the City Engineer to approve and sign the change order. PREPARED BY Alberto Griego DEPARTMENT Engineering EXT. 4386 EXPLANATION On July 19, 2005 by Resolution No. 2005-142, The City Council approved Change Order No. 1 which included 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, replacement of unsuitable material at E. 9th St and National City Blvd. and Removal of Railroad Ties along National City Boulevard. The Change Order amount is $127,049.94. Additional Inspection Services are necessary due to this added work from the Change Order. Staff has considered that Tetra Tech Inc. can provide the additional inspection services for increased AC Pavement overlay along National City Blvd. Tetra Tech is presently providing the inspection services on the original contract Engineering staff is recommending the approval of additional inspection services supplemental agreement with Tetra Tech Inc. in the amount of $9,818. The total amount of added services is $9,818, increasing the current cost of the project from $783,061.08 to $792,879.08. Environmental Review X N/A Financial Statement The total budget for the project was Services Supplemental Agreement Account Number 900353. STAFF RECOMMENDATION Adopt the Resolution MIS Approval Approved By.- estimated to be $852,814.48. Funding for this Addihonaitlnspection is available through the Community Development Commission Account No. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) 1. Resolution 2. Proposed Supplemental Agreement 3. Exhibit "A" Proposal from Additional Inspection Service. Resolution No. Tetrasupleml A-200 (Rev. 7/03) RESOLUTION 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY ENGINEER TO EXECUTE A SUPPLEMENTAL AGREEMENT WITH TETRA TECH, INC., FOR ADDITIONAL INSPECTION SERVICES IN THE AMOUNT OF $9,818 FOR THE NATIONAL CITY BOULEVARD, 7TH STREET TO 12TH STREET IMPROVEMENT PROJECT (Engineering Spec. 4-12) WHEREAS, on July 19, 2005, the City Council adopted Resolution No. 2005- 142 approving Change Order No. 1 with the Heffler Company for additional work on the National City Boulevard, 7th Street To 12th Street Improvement Project; and WHEREAS, due to the additional work performed by the Heffler Company, there are additional inspection services that need to be performed on the project; and WHEREAS, it is recommended that the additional inspection services be performed by Tetra Tech because they are inspection services provider for this project. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the City Engineer to execute a supplemental agreement with Tetra Tech, Inc., for additional inspection services on the National City Boulevard, 7th Street To 12th Street Improvement Project. Said Supplemental Agreement is on file in the Office of the City Clerk PASSED and ADOPTED this 16th day of August, 2005. Nick Inzunza, Mayor ATTEST: Michael Della, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND TETRA TECH INC. THIS AGREEMENT is entered into this 16th day of August, 2005, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and Tetra Tech Engineering Inc. (the "CONTRACTOR"). RECITALS WHEREAS, the CITY desires to employ a CONTRACTOR to perform Additional Inspection Services for the National City Boulevard 7th Street to 12`h Street Improvements Project, Spec. No. 04-12. WHEREAS, the CITY has determined that the CONTRACTOR is a firm specializing in inspection work, and is qualified by experience and ability to perform the services desired by the CITY, and the CONTRACTOR is willing to perform such services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF CONTRACTOR. The CITY hereby agrees to engage the CONTRACTOR and the CONTRACTOR hereby agrees to perform the services hereinafter set forth in accordance with all terms and conditions contained herein. The CONTRACTOR represents that all services required hereunder will be performed directly by the CONTRACTOR or under direct supervision of the CONTRACTOR. 2. SCOPE OF SERVICES. The CONTRACTOR will perform services as set forth in the attached Exhibit A. The CONTRACTOR shall be responsible for all research and reviews related to the work and shall not rely on personnel of the CITY for such services, except as authorized in advance by the CITY. The CONTRACTOR shall appear at meetings cited in Exhibit A to keep staff and City Council advised of the progress on the project. The CITY may unilaterally, or upon request from the CONTRACTOR, from time to time reduce or increase the Scope of Services to be performed by the CONTRACTOR under this Agreement. Upon doing so, the CITY and the CONTRACTOR agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction or increase in the compensation associated with said change in services, not t.o exceed a factor of 10% from the base amount. 3. PROJECT COORDINATION AND SUPERVISION. Alberto Griego, Associate Engineer -Civil, hereby is designated as the Project Coordinator for the CITY and will monitor the progress and execution of this Agreement. The CONTRACTOR shall assign a single Project Director to provide supervision and have overall responsibility for the progress and execution of this Agreement for the CONTRACTOR. Brad Nguyen, P. E., Project Manager thereby is designated as the Project Director for the CONTRACTOR. 4. COMPENSATION AND PAYMENT. The compensation for the CONTRACTOR shall be based on monthly billings covering actual work performed. Billings shall include labor classifications, respective rates, hours worked and also materials, if any. The total cost for all work described in Exhibit A shall not exceed the amounts described in the professional fees section of the attached Exhibit A (the Base amount) without prior written authorization from the Project Coordinator. Monthly invoices will be processed for payment and remitted within thirty (30) days from receipt of invoice, provided that work is accomplished consistent with Exhibit A as determined by the CITY. The CONTRACTOR shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CITY and for furnishing of copies to the CITY, if requested. 5. LENGTH OF AGREEMENT. The length of this agreement shall be (60) sicty working days from the date the agreement is entered. Therefore the final report shall be submitted no later than Tuesday, November 14, 2005. 6. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda, Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONTRACTOR for this Project, whether paper or electronic, shall become the property of the CITY for use with respect to this Project, and shall be turned over to the CITY upon completion of the Project, or any phase thereof, as contemplated by this Agreement. Contemporaneously with the transfer of documents, the CONTRACTOR hereby assigns to the CITY and CONTRACTOR thereby expressly waives and disclaims, any copyright in, and the right to reproduce, all written material, drawings, plans, specifications or other work prepared under this agreement, except upon the CITY's prior authorization regarding reproduction, which authorization sha.11 not be unreasonably withheld. The CONTRACTOR shall, upon request of the CITY, execute any further document(s) necessary to further effectuate this waiver and disclaimer. The CONTRACTOR agrees that the CITY may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium or method utilize the CONTRACTOR's written work product for the CITY's purposes, and the CONTRACTOR expressly waives and disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to intellectual property and artistic works_ 2 Any modification or reuse by the CITY of documents, drawings or specifications prepared by the CONTRACTOR shall relieve the CONTRACTOR from liability under Section 14 but only with respect to the effect of the modification or reuse by the CITY, or for any liability to the CITY should the documents be used by the CITY for some project other than what was expressly agreed upon within the Scope of this project, unless otherwise mutually agreed. 7. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners or joint venturers with one another. Neither the CONTRACTOR nor the CONTRACTOR'S employees are employee of the CITY and are not entitled to any of the rights, benefits, or privileges of the CITY's employees, including but not limited to retirement, medical, unemployment, or workers' compensation insurance. This Agreement contemplates the personal services of the CONTRACTOR and the CONTRACTOR's employees, and it is recognized by the parties that a substantial inducement to the CITY for entering into this Agreement was, and is, the professional reputation and competence of the CONTRACTOR and its employees. Neither this Agreement nor any interest herein may be assigned by the CONTRACTOR without the prior written consent of the CITY. Nothing herein contained is intended to prevent the CONTRACTOR from employing or hiring as many employees, or subcontractors, as the CONTRACTOR may deem necessary for the proper and efficient performance of this Agreement. All agreements by CONTRACTOR with its subcontractor(s) shall require the subcontractor to adhere to the applicable terms of this Agreement. 8. CONTROL. Neither the CITY nor its officers, agents or employees shall have any control over the conduct of the CONTRACTOR or any of the CONTRACTOR's employees except as herein set forth, and the CONTRACTOR expressly agrees not to represent that the CONTRACTOR or the CONTRACTOR's agents, servants, or employees are in any manner agents, servants or employees of the CITY, it being understood that the CONTRACTOR, its agents, servants, and employees are as to the CITY wholly independent contractors and that the CONTRACTOR's obligations to the CITY are solely such as are prescribed by this Agreement. 9. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR, in the performance of the services to be provided herein, shall comply with all applicable State and Federal statutes and regulations, and all applicable ordinances, rules and regulations of the City of National City, whether now in force or subsequently enacted. The CONTRACTOR, and each of its subcontractors, shall obtain and maintain a current City of National City business license prior to and during performance of any work within the City. l0. LICENSES, PERMITS, ETC. The CONTRACTOR represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. The CONTRACTOR represents and covenants that the CONTRACTOR shall, at its sole cost and expense, keep in effect at all times during the term 3 of this Agreement, any license, permit, or approval which is legally required for the CONTRACTOR to practice its profession. 11. STANDARD OF CARE. A. The CONTRACTOR, in performing any services under this Agreement, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the CONTRACTOR'S trade or profession currently practicing under similar conditions and in similar locations. The CONTRACTOR shall take all special precautions necessary to protect the CONTRACTOR's employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site. B. The CONTRACTOR is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the project the CONTRACTOR has been retained to perform, within the time requirements of the CITY, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONTRACTOR has notified the CITY otherwise, the CONTRACTOR warrants that all products, materials, processes or treatments identified in the project documents prepared for the CITY are reasonably commercially available. Any failure by the CONTRACTOR to use due diligence under this sub -paragraph will render the CONTRACTOR liable to the CITY for any increased costs that result from the CITY's later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time. 12. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONTRACTOR will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONTRACTOR agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause. 13. CONFIDENTIAL INFORMATION. The CITY may from time to time communicate to the CONTRACTOR certain confidential information to enable the CONTRACTOR to effectively perform the services to be provided herein. The CONTRACTOR shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CITY. The CONTRACTOR shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services to be provided herein. The foregoing obligation of this Section 13, however, shall not apply to any part of the infon-nation that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the CONTRACTOR, hereafter disclosed in publicly available sources of information, (iii) is already in the possession of the CONTRACTOR without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to 4 the CONTRACTOR by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. The CONTRACTOR shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this Agreement without the prior written consent of the CITY. In its performance hereunder, the CONTRACTOR shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. CONTRACTOR shall be liable to CITY for any damages caused by breach of this condition, pursuant to the provisions of Section 14. 14. INDEMNIFICATION AND HOLD HARMLESS. The CONTRACTOR agrees to indemnify and hold harmless the City of National City, its officers, employees, and appointed volunteers against and from any and all liability, loss, defense cost, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONTRACTOR's negligent acts, errors or omissions or other wrongful conduct performance of this Agreement. 15. WORKERS' COMPENSATION. The CONTRACTOR shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar state or Federal acts or laws applicable; and shall indemnify, and hold harmless the CITY and its officers, and employees from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including reasonable attorney's fees and defense costs presented, brought or recovered against the CITY or its officers, employees, or volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the CONTRACTOR under this Agreement. 16. INSURANCE. The CONTRACTOR, at its sole cost and expense, shall purchase and maintain, and shall require its subcontractors, when applicable, to purchase and maintain throughout the term of this agreement, the following insurance policies: A. If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence. B. Automobile insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include non -owned vehicles. C. Comprehensive general liability insurance, with minimum limits of $1,000,000 combined single limit per occurrence and annual aggregate, covering all bodily injury and property damage arising out of its operation under this Agreement. 5 employees. D. Workers' compensation insurance covering all of CONSULTANT's E. The aforesaid policies shall constitute primacy insurance as to the CITY, its officers, employees, and appointed volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CITY of cancellation or material change ten (10) days if cancellation is for nonpayment of premiums. F. Said policies, except for the professional liability and worker's compensation policies, shall name the CITY and its officers, agents and employees as additional insureds. G. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the CONTRACTOR shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. H. Any aggregate insurance limits must apply solely to this Agreement. I. Insurance shall be written with only California admitted companies which hold a current policy holder's alphabetic and financial size category rating of not less than A VIII according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the City's Risk Manager. J. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY's Risk Manager. If the CONTRACTOR does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CITY may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. 17. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out -of - court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys' fees. For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgement or award. Attorney's fees to the prevailing party if other than the CITY shall, in addition, be limited to the amount of attorney's fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual amount of attomey's fees incurred by the prevailing party. 18. MEDIATION/ARBITRATION. If a dispute arises out of or relates to this Agreement, or the breach thereof and the amount of controversy does not exceed $25,000, the parties agree first to try, in good faith, to settle the dispute by mediation in San Diego, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association (the "AAA") before resorting to arbitration. The costs of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this Agreement, or 6 breach thereof that does not exceed $25,000 and which is not resolved by mediation shall be settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration Rules of the AAA then existing. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any court having jurisdiction over the subject matter of the controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for and bear the costs of its own experts, evidence and attorneys' fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. 19. TERMINATION. A. This Agreement may be terminated with or without cause by the CITY. Termination without cause shall be effective only upon 60-day's written notice to the CONTRACTOR. During said 60-day period the CONTRACTOR shall perform all services in accordance with this Agreement. B. This Agreement may also be terminated immediately by the CITY for cause in the event of a material breach of this Agreement, misrepresentation by the CONTRACTOR in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the CITY. C. Termination with or without cause shall be effected by delivery of written Notice of Termination to the CONTRACTOR as provided for herein. D. In the event of termination, all finished or unfinished Memoranda Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONTRACTOR, whether paper or electronic, shall immediately become the property of and be delivered to the CITY, and the CONTRACTOR shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CITY by the CONTRACTOR's breach, if any. Thereafter, ownership of said written material shall vest in the CITY all rights set forth in Section 6. E. The CITY further reserves the right to immediately terminate this Agreement upon: (I) the filing of a petition in bankruptcy affecting the CONTRACTOR; (2) a reorganization of the CONTRACTOR for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONTRACTOR. 20. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, 7 request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To the CITY: Stephen M. Kirkpatrick City Engineer City of National City 1243 National City Boulevard National City, CA 91950 To the CONTRACTOR: Jim Jaska President Tetra Tech Inc. 10815 Rancho Bernardo Rd. Ste. 200 San Diego, CA 92127 Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty- eight (48) hours by letter mailed or delivered as specified in this Section. 21. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this Agreement, the CONTRACTOR shall not perform services of any kind for any person or entity whose interests conflict in any way with those of the City of National City. The CONTRACTOR also agrees not to specify any product, treatment, process or material for the project in which the CONTRACTOR has a material financial interest, either direct or indirect, without first notifying the CITY of that fact. The CONTRACTOR shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The CONTRACTOR shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the CITY in which the CONTRACTOR has a financial interest as defined in Government Code Section 87103. The CONTRACTOR represents that it has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the CITY. The CONTRACTOR shall be strictly liable to the CITY for all damages, costs or expenses the CITY may suffer by virtue of any violation of this Paragraph 21 by the CONTRACTOR. 22. MISCELLANEOUS PROVISIONS. A. Computation of Time Periods. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or federal, state or legal holiday. 8 B. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. C. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. D. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. E. Exhibits and Schedules. The following Exhibits attached hereto are hereby incorporated herein by this reference for all purposes. ■ Exhibit A — Scope of Services and Fee Schedule F. Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. G. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. H. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. I. Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. J. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. K. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) each party and such party's counsel and advisors have reviewed this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. 9 M IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CITY TETRA TECH ENGINEERING INC. (Two signatures required) By: By: Stephen M. Kirkpatrick, (Name) City Engineer APPROVED AS TO FORM: By: (Title) (Name) George H. Eiser, III City Attorney (Title) 10 EXHIBIT "A" TETRA TECH, INC. August 03, 2005 Mr. Albert Griego Engineering Department City of National City 1243 National City Boulevard National City, CA 91950 Reference: Revised Proposal for Additional Inspection Services for the National City Blvd. Between 7th to 12th Improvement Project, Spec. No. 04-12 Dear Mr. Griego: Tetra Tech, Inc. is pleased to submit this revised proposal to provide an additional 13 days of inspection services for the National City Boulevard 7th to 12th Improvement Project due to the additional asphalt work. Tetra Tech's current experience in providing inspection services for this project with the City makes us well qualified. Mr. Brad Nguyen will serve as Project Manager. He is a Registered Civil Engineer, and will be responsible of supervising the inspection services and the adequacy of the background and experience of the inspector. As Construction Inspector, Mr. Jorge Munoz will continue to be responsible for performing the inspection services. He has performed previous inspection tasks for the City and is familiar with the City's inspection requirements and procedures. FEE ESTIMATE We have attached our hourly fee estimate to complete these services similar the existing inspection services contract with the City. The fee estimate is based on 13 days of inspection added to the construction contract. We look forward to continuing working with you on this most important project. Please contact me at (858) 673-5505 if you have any questions. Sincerely, Brad Nguyen, P.E. Project Manager BN: amb 7:12774V0001 AM iscV nspectSvcCO. doc Attachment 108 5 Rancho Bernardo Road, Suite 200, San Diego, CA 92127 Tel 858.673.5505 Fax 858.673.1610 www.terra tech corn TETRA TECH, INC. FEE PROPOSAL CITY OF NATIONAL CITY ADDITIONAL SERVICES FOR NATIONAL CITY BLVD 7th to 12th IMPROVEMENT PROJECT SPEC. NO.04-12 PREPARED BY: TETRA TECH, INC. DATE: August 03, 2005 PROJ MGR SR. CONST INSP WORD PROC TOTAL LABOR HOURS TOTAL LABOR COSTS DIRECT COSTS TOTAL COST $150.00 $87.00 $60.00 INSPECTION SERVICES 1 Additional Inspection Hours (13 working days x 8hrs =104 hrs) 104 104 $9,048 $50 $9,098 2 RCE Supervision 4 2 6 $720 $720 SUBTOTAL 4 104 2 110 $9,768 $50 $9,818 TOTAL NOT TO EXCEED AMOUNT $9 818 InspectSvcCOFee 1 8/3/2005 City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE August 16, 2005 AGENDA ITEM NO. 8 ITEM TITLE A resolution approving a supplemental agreement for additional civil engineering design services with BDS Engineering, Inc. in the amount of $88,620 for the National City Sanitary Sewer Rehabilitation on 22nd Street and authorizing the City Engineer to sign the agreement. PREPARED BY Joe Smith/Alberto Griego DEPARTMENT Engineering EXT. 4386 4587 EXPLANATION See Attached Explanation. L CEnvironmental Review N/A Financial Statement h MIS Approval This agreement is for a "Not to Exceed" amount of $88,620. Funds are available in Account No. 125-409-500-598-2014. >STAFF RECOMMENDATION Adopt the Resolution Approved By: Financector Account No. s (6)--ki0 BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. 1. Resolution 2. Agreement 3. Exhibit "A" Proposal from BDS Engineering, Inc. bdsuplm A-200 (Rev. 7/03) RE: A resolution approving a supplemental agreement for additional civil engineering design services with BDS Engineering, Inc. in the amount of $88,620 for the National City Sanitary Sewer Rehabilitation on 22nd Street and authorizing the City Engineer to sign the agreement. EXPLANATION: On October 5, 2004 by City Council Resolution No. 2004-192 a supplemental agreement with BDS Engineering, Inc. was approved in the amount of $113,200 to provide civil engineering design services for the National City Sanitary Sewer System and the Sanitary and Storm Drain Pump Station Rehabilitation. The civil engineering design services consists of design for a new double barrel (2) 36" sewers that can carry up to 6.5 million gallons per day and connect to the South Bay Metropolitan Interceptor Sewer, which carries flows of the South Bay Cities to the Point Loma Wastewater Treatment Plant. The existing sewer is presently carrying 5.2 million gallons per day and is at the end of its useful life. Geotechnical borings have been recently completed for the project by Geocon Incorporated at Wilson Ave. and 22nd Street. The four borings drilled encountered fills immediately below the surface, varying in thickness from 5 to 9 feet. Groundwater was also encountered at all borings from 12 to 26 feet in depth. To construct the sewer it will be necessary to dewater the construction site. This water would be disposed of by depositing it in the existing City of San Diego Interceptor sewer. To do this it will be necessary to have a groundwater characterization study made to evaluate the effluent quantities that may be produced during the construction of the project, evaluation of expected chemical quality of the groundwater, and appropriated methods and estimated costs to treat contaminated groundwater, if encountered. This is a requirement of the City of San Diego Wastewater Division. Also, the parking area for the 24th Street Transit Center will be redesigned to allow closing of Wilson Avenue at W. 22" d Street. Additional plans for topographic survey, site, grading, paving and traffic stripping for the modifications to the Transit Center will be provided. Staff has considered this firm to provide the engineering design services for this project. BDS is presently providing services for this project. BDS is also familiar with the City's design engineering requirements. The proposed scope of work for the additional engineering services will include the complete Topographic Survey and Transit Center Improvement Plans. The Groundwater Characterization Study will include Field Explorations, Laboratory Testing, Engineering Evaluations and Analyses and Report Preparation. Based upon the staff's request, BDS has a proposed scope of work, outlined in Exhibit "A" of the supplemental agreement, to perform the required services. This scope of work is consistent with the City's engineering design needs. The work can be accomplished through an Additional Supplemental Agreement to the existing "As - needed " contract. The final scope of work is attached as part of the Supplemental Agreement that is being presented to the Council for approval. The fee for performing the work per the cost proposal (Exhibit "A") is a "Not to Exceed" amount of $ 88,620. RESOLUTION NO. 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY ENGINEER TO EXECUTE AN AGREEMENT WITH BDS ENGINEERING, INC., IN THE AMOUNT OF $88,620 TO PROVIDE CIVIL ENGINEERING AND LAND SURVEYING SERVICES FOR THE NATIONAL CITY SANITARY SEWER REHABILITATION ON 22ND STREET BETWEEN HOOVER AVENUE AND WILSON AVENUE WHEREAS, the City desires to employ a contractor to provide additional civil engineering and land surveying services for the sanitary sewer rehabilitation on 22"d Street between Hoover Avenue and Wilson Avenue; and WHEREAS, the City has determined that BDS Engineering, Inc. is a engineering firm specializing in civil engineering design, and is qualified by experience and ability to perform such services desired by the City, and BDS Engineering, Inc. is willing to perform such services. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the City Engineer to execute a supplemental agreement in the amount of $88,620 with BDS Engineering, Inc. to provide civil engineering and land surveying services for the sanitary sewer system and the sanitary sewer rehabilitation on 22" Street between Hoover Avenue and Wilson Avenue. Said agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 16th day of August, 2005. Nick Inzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND BDS ENGINEERING, INC. THIS AGREEMENT is entered into this 16 day of August, 2005, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and BDS Engineering Inc. (the "CONTRACTOR"). RECITALS WHEREAS, the CITY desires to employ a CONTRACTOR to provide additional civil engineering and land surveying services for the National City Sanitary Sewer Rehabilitation on 22nd Street. WHEREAS, the CITY has determined that the CONTRACTOR is a firm specializing in Civil Engineering design work, and is qualified by experience and ability to perform the services desired by the CITY, and the CONTRACTOR is willing to perform such services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF CONTRACTOR. The CITY hereby agrees to engage the CONTRACTOR and the CONTRACTOR hereby agrees to perform the services hereinafter set forth in accordance with all terms and conditions contained herein. The CONTRACTOR represents that all services required hereunder will be performed directly by the CONTRACTOR or under direct supervision of the CONTRACTOR. 2. SCOPE OF SERVICES. The CONTRACTOR will perform services as set forth in the attached Exhibit A. The CONTRACTOR shall be responsible for all research and reviews related to the work and shall not rely on personnel of the CITY for such services, except as authorized in advance by the CITY. The CONTRACTOR shall appear at meetings cited in Exhibit A to keep staff and City Council advised of the progress on the project. The CITY may unilaterally, or upon request from the CONTRACTOR, from time to time reduce or increase the Scope of Services to be performed by the CONTRACTOR under this Agreement. Upon doing so, the CITY and the CONTRACTOR agree to meet in good faith and confer for the purpose of negotiating a colTesponding reduction or increase in the compensation associated with said change in services, not to exceed a factor of 10'% from the base amount. 3. PROJECT COORDINATION AND SUPERVISION. Alberto Griego, Associate Engineer -Civil, hereby is designated as the Project Coordinator for the CITY and will monitor the progress and execution of this Agreement. The CONTRACTOR shall assign a single Project Director to provide supervision and have overall responsibility for the progress and execution of this Agreement for the CONTRACTOR Gordon Axelson, P. E., Principal thereby is designated as the Project Director for the CONTRACTOR. 4. COMPENSATION AND PAYMENT. The compensation for the CONTRACTOR shall be based on monthly billings covering actual work performed. Billings shall include labor classifications, respective rates, hours worked and also materials, if any. The total cost for all work described in Exhibit A shall not exceed the amounts described in the professional fees section of the attached Exhibit A (the Base amount) without prior written authorization from the Project Coordinator. Monthly invoices will be processed for payment and remitted within thirty (30) days from receipt of invoice, provided that work is accomplished consistent with Exhibit A as determined by the CITY. The CONTRACTOR shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CITY and for furnishing of copies to the CITY, if requested. 5. LENGTH OF AGREEMENT. The length of this agreement shall be (120) one hundred and twenty working days from the date the agreement is entered. Therefore the final report shall be submitted no later than Friaday February 10, 2005. 6. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda, Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONTRACTOR for this Project, whether paper or electronic, shall become the property of the CITY for use with respect to this Project, and shall be turned over to the CITY upon completion of the Project, or any phase thereof, as contemplated by this Agreement. Contemporaneously with the transfer of documents, the CONTRACTOR hereby assigns to the CITY and CONTRACTOR thereby expressly waives and disclaims, any copyright in, and the right to reproduce, all written material, drawings, plans, specifications or other work prepared under this agreement, except upon the CITY's prior authorization regarding reproduction, which authorization shall not be unreasonably withheld. The CONTRACTOR shall, upon request of the CITY, execute any further document(s) necessary to further effectuate this waiver and disclaimer. The CONTRACTOR agrees that the CITY may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium or method utilize the CONTRACTOR's written work product for the CITY's purposes, and the CONTRACTOR expressly waives and disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to intellectual property and artistic works. 2 Any modification or reuse by the CITY of documents, drawings or specifications prepared by the CONTRACTOR shall relieve the CONTRACTOR from liability under Section 14 but only with respect to the effect of the modification or reuse by the CITY, or for any liability to the CITY should the documents be used by the CITY for some project other than what was expressly agreed upon within the Scope of this project, unless otherwise mutually agreed. 7. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners or joint venturers with one another. Neither the CONTRACTOR nor the CONTRACTOR'S employees are employee of the CITY and are not entitled to any of the rights, benefits, or privileges of the CITY's employees, including but not limited to retirement, medical, unemployment, or workers' compensation insurance. This Agreement contemplates the personal services of the CONTRACTOR and the CONTRACTOR's employees, and it is recognized by the parties that a substantial inducement to the CITY for entering into this Agreement was, and is, the professional reputation and competence of the CONTRACTOR and its employees. Neither this Agreement nor any interest herein may be assigned by the CONTRACTOR without the prior written consent of the CITY. Nothing herein contained is intended to prevent the CONTRACTOR from employing or hiring as many employees, or subcontractors, as the CONTRACTOR may deem necessary for the proper and efficient performance of this Agreement. All agreements by CONTRACTOR with its subcontractor(s) shall require the subcontractor to adhere to the applicable terms of this Agreement. 8. CONTROL. Neither the CITY nor its officers, agents or employees shall have any control over the conduct of the CONTRACTOR or any of the CONTRACTOR's employees except as herein set forth, and the CONTRACTOR expressly agrees not to represent that the CONTRACTOR or the CONTRACTOR's agents, servants, or employees are in any manner agents, servants or employees of the CITY, it being understood that the CONTRACTOR, its agents, servants, and employees are as to the CITY wholly independent contractors and that the CONTRACTOR's obligations to the CITY are solely such as are prescribed by this Agreement. 9. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR, in the performance of the services to be provided herein, shall comply with all applicable State and Federal statutes and regulations, and all applicable ordinances, rules and regulations of the City of National City, whether now in force or subsequently enacted. The CONTRACTOR, and each of its subcontractors, shall obtain and maintain a current City of National City business license prior to and during performance of any work within the City. 10. LICENSES, PERMITS, ETC. The C:ON[RACTOR represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. The CONTRACTOR represents and covenants that the CONTRACTOR shall, at its sole cost and expense, keep in effect at all times during the term 3 of this Agreement, any license, permit, or approval which is legally required for the CONTRACTOR to practice its profession. 11. STANDARD OF CARE. A. The CONTRACTOR, in performing any services under this Agreement, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the CONTRACTOR'S trade or profession currently practicing under similar conditions and in similar locations. The CONTRACTOR shall take all special precautions necessary to protect the CONTRACTOR's employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site. B. The CONTRACTOR is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the project the CONTRACTOR has been retained to perform, within the time requirements of the CITY, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONTRACTOR has notified the CITY otherwise, the CONTRACTOR warrants that all products, materials, processes or treatments identified in the project documents prepared for the CITY are reasonably commercially available. Any failure by the CONTRACTOR to use due diligence under this sub -paragraph will render the CONTRACTOR liable to the CITY for any increased costs that result from the CITY's later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time. 12. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONTRACTOR will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONTRACTOR agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause. 13. CONFIDENTIAL INFORMATION. The CITY may from time to time communicate to the CONTRACTOR certain confidential information to enable the CONTRACTOR to effectively perform the services to be provided herein. The CONTRACTOR shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CITY. The CONTRACTOR shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services to be provided herein. The foregoing obligation of this Section 13, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the CONTRACTOR, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONTRACTOR without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to 4 the CONTRACTOR by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. The CONTRACTOR shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this Agreement without the prior written consent of the CITY. In its performance hereunder, the CONTRACTOR shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. CONTRACTOR shall be liable to CITY for any damages caused by breach of this condition, pursuant to the provisions of Section 14. 14. INDEMNIFICATION AND HOLD HARMLESS. The CONTRACTOR agrees to indemnify and hold harmless•the City of National City, its officers, employees, and appointed volunteers against and from any and all liability, loss, defense cost, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONTRACTOR's negligent acts, errors or omissions or other wrongful conduct performance of this Agreement. 15. WORKERS' COMPENSATION. The CONTRACTOR shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar state or Federal acts or laws applicable; and shall indemnify, and hold harmless the CITY and its officers, and employees from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including reasonable attorney's fees and defense costs presented, brought or recovered against the CITY or its officers, employees, or volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the CONTRACTOR under this Agreement. 16. INSURANCE. The CONTRACTOR, at its sole cost and expense, shall purchase and maintain, and shall require its subcontractors, when applicable, to purchase and maintain throughout the term of this agreement, the following insurance policies: A. If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence. B. Automobile insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include non -owned vehicles. N C. Comprehensive general liability insurance, with minimum limits of $1,000,000 combined single limit per occurrence and' annual aggregate, covering all bodily injury and property damage arising out of its operation under this Agreement. 5 Workers' compensation insurance covering all of CONSULTANT's employees. E. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, employees, and appointed volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CITY of cancellation or material change ten (10) days if cancellation is for nonpayment of premiums. F. Said policies, except for the professional liability and worker's compensation policies, shall name the CITY and its officers, agents and employees as additional insureds. G. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the CONTRACTOR shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. H. Any aggregate insurance limits must apply solely to this Agreement. I. Insurance shall be written with only California admitted companies which hold a current policy holder's alphabetic and financial size category rating of not less than A VIII according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the City's Risk Manager. J. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY's Risk Manager. If the CONTRACTOR does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CITY may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. 17. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out -of - court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys' fees. For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgement or award. Attorney's fees to the prevailing party if other than the CITY shall, in addition, be limited to the amount of attorney's fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual amount of attorney's fees incurred by the prevailing party. 18. MEDIATION/ARBITRATION. If a dispute arises out of or relates to this Agreement, or the breach thereof and the amount of controversy does not exceed $25,000, the parties agree first to try, in good faith, to settle the dispute by mediation in San Diego, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association (the "AAA") before resorting to arbitration. The costs of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this Agreement, or 6 breach thereof that does not exceed $25,000 and which is not resolved by mediation shall be settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration Rules of the AAA then existing. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any court having jurisdiction over the subject matter of the controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for and bear the costs of its own experts, evidence and attorneys' fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. 19. TERMINATION. A. This Agreement may be terminated with or without cause by the CITY. Termination without cause shall be effective only upon 60-day's written notice to the CONTRACTOR. During said 60-day period the CONTRACTOR shall perform all services in accordance with this Agreement. B. This Agreement may also be terminated immediately by the CITY for cause in the event of a material breach of this Agreement, misrepresentation by the CONTRACTOR in connection with the formation of this Agreement or the performance of , services, or the failure to perform services as directed by the CITY. C. Termination with or without cause shall be effected by delivery of written Notice of Termination to the CONTRACTOR as provided for herein. D. In the event of termination, all finished or unfinished Memoranda Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONTRACTOR, whether paper or electronic, shall immediately become the property of and be delivered to the CITY, and the CONTRACTOR shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Tennination, not to exceed the amounts payable hereunder, and less any damages caused the CITY by the CONTRACTOR's breach, if any. Thereafter, ownership of said written material shall vest in the CITY all rights set forth in Section 6. E The CITY further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONTRACTOR; (2) a reorganization of the CONTRACTOR for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONTRACTOR. 20. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, 7 request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To the CITY: Stephen M. Kirkpatrick Acting Director of Public Works/Engineering City of National City 1243 National City Boulevard National City, CA 91950 To the CONTRACTOR: Gordon K. Axelson Principal BDS Engineering, Inc. 6859 Federal Boulevard Lemon Grove, CA 91945-1315 Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty- eight (48) hours by letter mailed or delivered as specified in this Section. 21. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this Agreement, the CONTRACTOR shall not perform services of any kind for any person or entity whose interests conflict in any way with those of the City of National City. The CONTRACTOR also agrees not to specify any product, treatment, process or material for the project in which the CONTRACTOR has a material financial interest, either direct or indirect, without first notifying the CITY of that fact. The CONTRACTOR shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The CONTRACTOR shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the CITY in which the CONTRACTOR has a financial interest as defined in Government Code Section 87103. The CONTRACTOR represents that it has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the CITY. The CONTRACTOR shall be strictly liable to the CITY for all damages, costs or expenses the CITY may suffer by virtue of any violation of this Paragraph 21 by the CONTRACTOR. 22. MISCELLANEOUS PROVISIONS. A. Computation of nine Periods. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or federal, state or legal holiday. 8 B. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. C. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. D. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. E. Exhibits and Schedules. The following Exhibits attached hereto are hereby incorporated herein by this reference for all purposes. ■ Exhibit A — Scope of Services and Fee Schedule F. Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. G. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. H. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. I. Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. J. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. K. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) each party and such patty's counsel and advisors have reviewed this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. 9 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CITY BDS ENGINEERING INC. (Two signatures required) By: By: Stephen M. Kirkpatrick, (Name) Acting Director of Public Works/Engineering APPROVED AS TO FORM: By: George H. Eiser, III (Title) (Name) City Attorney (Title) 10 EXHIBIT "A" .-, r l TEngineering, Inc. �D Civil Engineering �. �" Land Surveying ...o =E::_ G7rt cn Thomas Jones, PE, LS, Principal rn -cs Gordon Axelson, PE Principal —1 June 7, 2005 Mr. Alberto Griego Associate Civil Engineer Department of Public Works City of National City 1243 National City Boulevard National City, CA 91950 Ref: National City Sewer Interceptor Upgrading and Pump Station Rehabilitation BDS No. 04-68 Dear Mr. Griego: BDS Engineering is pleased to provide the following proposal for additional civil engineering and land surveying services. Topographic Survey Lump Sum $ 2,750 We will provide additional topographic survey for the improvements to the parking facility at the transit center at the intersection of Wilson Avenue and 22"d Street. The additional topographic survey will accommodate the redesign of the parking area to allow the closing of the Wilson Avenue and 22"d Street intersection closure. Transit Center Improvement Plans Lump Sum $ 9,750 We will provide Site, Grading, Paving and Striping plans for the modifications to the transit center for the closure of the Wilson Avenue and 22nd Street intersection. Groundwater Characterization Study We will perform a groundwater characterization study for the subject project. This study will include an estimate of the dewatering effluent quantities that' may be produced during construction of the project, evaluation of expected chemical quality of the groundwater, and appropriate methods and estimated costs to treat contaminated groundwater, if encountered. 6 8 5 9 Federal Boulevard Lemon Grove, California 9 1 9 4 5- 1 3 1 5 6 1 9- 5 8 2. 4 9 9 2 Fax 6 1 9- 5 8 2- 7 4 2 8 Established 1973 Mr. Alberto Griego City of National City June 7, 2005 Page 2 PROPOSED CONSTRUCTION The proposed sewer main improvements will include replacing an existing 36-inch diameter vitrified clay sewer line with two 36-inch diameter PVC sewers. The new sewer lines will be constructed within the right-of-way of West 22" Street between Wilson and Hoover Avenues in National City, a distance of approximately 960 feet. The existing ground surface along the alignment varies from +7 feet to +22 feet Mean Sea Level (MSL). A new junction box will tie the new sewers into an existing 96-inch diameter interceptor sewer at Wilson Avenue. Three cleanouts will also be constructed along the sewer alignment. At the upstream end (east) of the new sewer, the invert level will be at approximately at elevation —8 feet MSL, which is approximately 20 feet below existing grade. At the downstream (west) end of the project, the invert of the junction box will be at elevation —15 feet MSL, approximately 36 feet below existing grade. The new sewer will pass beneath a concrete box culvert, which has an invert elevation of 0.1 feet MSL and carries Paradise Creek beneath West 22nd Street. Geotechnical borings have recently been completed for the project by Geocon Incorporated (Geocon). The four borings drilled for that investigation all encountered fills immediately below the surface, varying in thickness from 5 to 9 feet. Below the fills, heterogeneous bay deposits, ranging from very soft clays to dense sands, were encountered down to the proposed sewer invert levels. These bay deposits are suspected to be alluvial or estuary sediments deposited in the historical Paradise Creek flood plain. The groundwater was recorded in the borings at elevations ranging from +8 to -6 feet MSL; however, it is suspected that the groundwater levels may not have stabilized at the time of drilling. PURPOSE OF SCOPE AND SERVICES The purpose of our groundwater characterization is to evaluate groundwater quality in the vicinity of the project, estimate the quantity of dewatering effluent during construction of the replacement sewer line, evaluate the potential need for treatment of the dewatering effluent prior to disposal, and evaluate options for disposal of treated effluent. The scope of our services will include review of available documentation describing site conditions, installation of monitoring wells, laboratory testing, engineering analyses and evaluations, and preparation of a written report. L.,PRO1 tC'I S‘0465VAdm nAP oposnlsVAddsa oices.doc "3 Mr. Alberto Griego City of National City. June 7, 2005 Page 3 Prior to installation of the monitoring well, we will review documentation to identify known contaminated sites possibly located in the vicinity of the project that may affect groundwater quality and requirements for treatment prior to disposal. We will obtain an Environmental Data Report, Inc. (EDR) Radius Map Report to identify known contaminated sites within an approximately 1-mile radius of the project. The EDR Radius Map Report is prepared by conducting a search of federal, state, and local governmental databases. We will review the results of this report in support of our characterization of groundwater quality. We will review the full Geocon geotechnical investigation report once it becomes available. We will also review published information on the area geology and other investigations in the vicinity contained in our files. We propose to install three monitoring wells so that samples of the groundwater can be obtained and insitu tests can be performed to evaluate the permeability characteristics of the soils. The three monitoring wells would be located 1) near the proposed junction box, 2) just east of the Paradise Creek culvert, and 3) at Iloover Avenue. Traffic control for the work will be provided. The borings for the well installations will be advanced with a truck -mounted hollow -stem -auger drill rig. The monitoring wells would extend at least 10 feet below the planned invert levels. Soil samples will be taken at depth intervals of approximately 5 feet, to the maximum depth of the borings. Samples will be taken with either the modified California sampler or the Standard Penetration Test (SPT) sampler. A geologist or geotechnical engineer will prepare a log of the borings and classify the soils encountered in accordance with the Unified Soil Classification System. Once the boring is complete, we will install 2-inch diameter, factory -slotted pipe as the monitoring well. The slotted portion of the pipe will have the borehole annular space backfilled with sand. Bentonite chips will be installed in the annular space above the groundwater level to prevent waters infiltrating from the surface. A traffic -rated well cover will be installed at the surface of the roadway. The monitoring wells will be installed in accordance with County of San Diego requirements. The borings will also need to be permitted by San Diego County; we will apply for these permits prior to the drilling program. Approved traffic control plans are required by the County as part of this process; we will prepare traffic control plans to submit to the City for approval. Prior to advancing the borings, we will contact Underground Service Alert (USA) and request utility mark -outs. We have also assumed that will be provided with any available plans indicating existing site utilities. We cannot be responsible for damage to below ground utilities not called out by USA and/or indicated on available site plans. I APROIFCTSt016RVAc n\Pmposels\A ddse ces Aoc Mr. Alberto Griego City of National City June 7, 2005 Page 4 County boring permit requirements prohibits using soil cutting to backfill borings. For our fee estimate, we have assumed that the soils generated from the borings would not be considered hazardous materials. We have also assumed that the drums containing the potentially contaminated soil cuttings from the test boring could be temporarily stored onsite, or at a nearby facility to be designated by the City of National City, if necessary. We will arrange for disposal of the drill cuttings. Handling and disposal of hazardous materials would be an additional cost that would be provided if contaminated materials were encountered in the borings. Following completion of the monitoring wells, the groundwater within the wells would be purged and developed to assure a representative sample of the groundwater (free of drilling additives) is obtained. The purged and development water will also need to be contained in drums until the results of the groundwater characterizations are received. We have also assumed that the drums containing the water generated by purging, developing and pump testing the wells (below) could be temporarily stored onsite, or at a nearby facility designated by the City of National City. After receipt of the laboratory results of the groundwater samples documenting the chemical quality of the water, we will dispose of the development and purge water to the sanitary sewer under a batch discharge permit issued by the city. This assumes that the water quality will not exceed limits under city discharge requirements. Costs for treatment prior to discharge or off -site disposal of the water is not included in this proposal, although a unit cost for off -site disposal, if necessary, can be provided. After development and purging, groundwater samples will be collected from each of the monitoring wells and will be analyzed for the following constituents: • Petroleum hydrocarbons using EPA Method 418.1 • Volatile organic compounds using EPA Method 8260B • Metals using EPA Method 6010B • SVOCs using EPA Method 8270C • pH using EPA Method 150.1 • Total organic carbon using EPA Method 415.1 I.SP ROJ ECTS'046S :limp' Proposal,. clrl a ace Aoc Mr. Alberto Griego City of National City June 7, 2005 Page 5 Samples will be analyzed at a California -certified laboratory on a normal turnaround basis (approximately 1 to 2 weeks). Based on review of the laboratory results and the EDR Radius Map Report, we will evaluate the potential need for treatment of the dewatering effluent prior to discharge. In this evaluation we will consider the expected chemical quality of the groundwater, regulatory limits on discharge to either the sanitary sewer under a special purpose discharge permit (or to the storm sewer under an NPDES Permit if sanitary sewer disposal is not allowed). Various treatment technologies will be considered to address discharge limits and costs for installation and operation, including monitoring. The soil samples obtained from the borings will be returned to our geotechnical laboratory for further classification and testing. The testing will include moisture content, dry density, and particlesize analyses. Borehole recovery tests (pump out tests) will be performed in the monitoring wells to estimate the permeability of the subsurface materials. The recovery tests will be performed using a small diameter submersible pump, to pump groundwater from the borings. The rate of groundwater recovery will then be monitored with a transducer placed at the bottom of the well. The water level recovery data is collected with a field data logger, which is then downloaded for data analysis. The pumped water will also need to be contained in drums until the results of the groundwater characterizations are received. We will use a numerical model (SEEP\W) to provide an estimate of dewatering quantities needed to facilitate construction. Hydrogeologic parameters will be estimated based on the results of the borehole recovery tests and the soil types encountered within the borings. It is our understanding that construction will be completed within 2 months. Based on the groundwater quality data, we will screen various technologies to identify the most cost effective means of treating the extracted groundwater. We will also prepare a schematic diagram to describe the selected water treatment technology, and develop an estimate of costs for installation and operation of the treatment system. Peumitting requirements for the installation and operation will be identified, including discharge of the treated water effluent. The results of our groundwater characterization study will be documented in a written report. ESTIMATED SCHEDULE AND FEES We can begin preparing traffic control plans for submittal with the permit application for the borings immediately upon your authorization to proceed with the investigation. The County typically requires two weeks to process the permit. We estimate that we would complete the installation of the monitoring wells in three to four days. Laboratory testing would be completed two weeks after completing the field explorations. We anticipated that we will be able to provide a draft report for your review within 8 weeks of your authorization to proceed. L,PROJ EC7 S`.O468`Adi ProposaIslAddscry Ices .doe Mr. Alberto Griego City of National City June 7, 2005 Page 6 A breakdown of the Groundwater Characterization Study is as follows: Task No. Task Estimated Fee 1 Field Explorations $38,390 2 Laboratory Testing $4,730 3 Engineering Evaluations and Analyses $17,380 4 Report Preparation $15,620 Total Estimated Fee $76,120 Summary of Fees Topographic Survey Transit Center Improvement Plans Groundwater Characterization Study The above fees do not include the following: Lump Sum $ 2,750 Lump Sum $ 9,750 Lump Sum $76,120 Total Fee $88,620 • Public Agency Fees • Construction Staking, etc. • Boundary Survey/ Record of Survey • Right of Way Dedications/Vacations, etc • Title Report, Deeds, etc. • Environmental Remediation • Documentation for "General Construction Activity Storm Water Pollution & Prevention Plan" and "Notice of Intent" • Underground Utility Locator Service • Overnight Mail, delivery services, etc. L.: PHUI EC'ISV0468vAdminAProposolsVAddserviccs.doc Mr. Alberto Griego City of National City June 7, 2005 Page 7 If you have any questions, please do not hesitate to call. Very truly yours, BDS Engineering, Inc. Civil ine ordon K. Axelson GKA:vc LAPROJECTSV0468VAdmin'Proposals`.Acdscry lccs.doc +FETING DATE City of National City, California COUNCIL AGENDA STATEMENT August 16, 2005 AGENDA ITEM NO. 9 ITEM I LE Kesoiution of the laity of National- City approving Contract Change Order Nw goer ork and authorize the filing of a Notice of Completion for the National City Resurfacing Project FY 03-04, Spec No. 03-11, in the amount of $33,238.72 with Frank and Son, Inc. for costs attributable to deteriorated conditions in the base and pavement and replacement of expansive soil base material on E.16th and "L" Avenue to N Avenue and authorizing the City Engineer to sign the change order. PREPARED BY Albert Griego DEPARTMENT Engineering 4386 EXPLANATION On August 17, 2004, by Resolution No. 2004-163, the City Council awarded a contract in the amount of $1,023,439.77 to Frank and Sons, Inc. for the National City Street Resurfacing Project FY 03-04, Specification No. 03-11. Contract Change Order No. 2 is done to balance the final estimate, to add or deduct items and to make quantity adjustment. Engineering staff is recommending that bid item number 28 be added due to encountering deteriorated conditions in the base and pavement along E. 16th Street from L Avenue to N Avenue. The total amount of Contract Change Order Number 2 is $33,238.72, increasing the current cost of the project from $1,096,073 to $1,129,312.48. This is below the total estimated cost of the project of $1,237,988.07 and which includes contingencies, materials testing, inspection and surveying. (Environmental Review X N/A Financial Statement This amount is within the estimated budget for this project. Funding is available through Account Number 109-409-500-598-6035 and 307-409-500-598-6035. N 4., Account � Hof STAFF RECOMMENDATION Adopt the Resolution. 5-14 tkif BOARD / COMMISSIO RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. 3. A-200 (9/B0) Resolution 4. Notice of Completion Contract Change Order No. 2 Exhibit A, Change Order from Frank and Son, Inc. RESOLUTION NO. 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE FINAL CONTRACT BALANCE CHANGE ORDER WITH FRANK AND SON PAVING, INC., IN THE AMOUNT OF $33,238.72, FOR COSTS ATTRIBUTABLE TO DETERIORATED CONDITIONS IN THE BASE AND PAVEMENT, AND REPLACEMENT OF EXPANSIVE SOIL BASE MATERIAL ON EAST 161.14 STREET FROM "L" AVENUE TO "N" AVENUE, ACCEPTING THE WORK, AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE NATIONAL CITY RESURFACING PROJECT, FY 2003-2004, PROJECT (Engineering Specification No. 03-11) WHEREAS, at its regular meeting on August 17, 2004, the City Council adopted Resolution No. 2004-163, which awarded a contract to Frank and Son Paving, Inc., for the National City Resurfacing Project; and WHEREAS, a change order is required to balance the final estimate, to add and/or deduct items, to make quantity adjustments, and for costs attributable to deteriorated conditions in the base and pavement, and replacement of expansive soil base material on East 16th from "L" Avenue to "N" Avenue. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City hereby approves the Contract Final Balance Change Order for the National City Resurfacing Project. BE IT FURTHER RESOLVED by the City Council of the City of National City, California, as follows: It appearing to the satisfaction of the Engineering Department that all work required to be done by Frank and Son Paving, Inc., Engineering Department Specification No. 03-11, for the National City Resurfacing Project has been completed, the City Council of National City hereby accepts said work, authorizes the filing of a Notice of Completion, and orders that payment for said work be made in accordance with said contract. PASSED and ADOPTED this 16th day of August, 2005. Nick Inzunza, Mayor ATTEST: APPROVED AS TO FORM: Michael Dalla, City Clerk George H. Eiser, III City Attorney CONTRACT CHANGE ORDER NO. 2 DATE: 8/16/05 PROJECT: National City Street Resurfacing Project, FY 03-04, Specification No. 03-11 TO: Mrs. Alicia Vasquez, President Frank and Son Paving, Inc. 1019 Third Ave. Chula Vista, CA 91911 DESCRIPTION OF CHANGE: This change order is written to add item 28 to the contract (shown below) Current Contract Adjusted Contract (CO #2) No Item Unit Bid Qty Unit Price Amount Bid Qty Unit Price Amount 1 Mobilization LS 1 $10,000.00 $10,000.00 1 $10,000.00 $10,000.00 2 Clearing and Grubbing LS 1 $15,000.00 $15,000.00 1 $15,000.00 $15,000.00 3 Unclassified Excavation CY 400 $30.00 $12,000.00 400 $30.00 $12,000.00 4 Traffic Control LS 1 $20,000.00 $20,000.00 1 $20,000.00 $20,000.00 c R&R Street Section 1.5" AC on 8" Base SF 83,944 $2.70 $226,648.80 83,944 $2.70 $226,648.80 6 R&R Street Section 2" AC on 10" Base SF 39,454 $3.75 $147,952.50 39,454 $3.75 $147,952.50 7 R&R Street Section 3" AC on 8" SF 4,900 $5.50 $26,950.00 4900 $5.50 $26,950.00 8 R&RACOnly TONS 2,556 $55.00 $140,580.00 2,611.7 $55.00 $143,643.50 9 Pavement Milling LF 26,043 $1.13 $29,428.59 30,119 $1.13 $34,034.47 10 Pavement Fabric SY 66,082 $0.71 $47,050.38 66,082 $0.71 $46,918.22 11 A.C. Overlay TONS 4,625 $47.70 $220,612.50 5,172.8 $47.70 $246,742.56 12 Adjust Manholes to Grade EA 40 $350.00 $14,000.00 40 S350.00 $14,000.00 13 Adjust Monuments to Grade EA 7 $550.00 $3,850.00 7 $550.00 $3,850.00 14 R&R Cross Gutter SF 3,788 $7.50 $28,410.00 3,788 $7.50 $28,410.00 15 New Cross Gutter SF 154 $7.00 $1,078.00 154 $7.00 $1,078.00 16 R&R Sidewalk SF 3,696 $6.50 $24,024.00 4,922.5 $6.50 $31,996.25 17 New G-1 Curb LF 85 $16.00 $1,360.00 85 $16.00 $1,360.00 18 R&R Ctu-b and Gutter LF 203 $25.00 $5,075.00 324.30 $25.00 $8,107.50 19 Traffic Striping LS 1 $13,000. $13,000.00 1 $13,000.00 $13,000.00 20 Reinstall Traffic Loops EA 19 $260.00 $4,940.00 19 $260.00 $4,940.00 21 New Driveway SF 432 $6.00 $2,592.00 432 $6.00 $2,592.00 R&R Driveway SF 386 $8.00 $3,088.00 2,901 $8.00 $23,208.00 Page 1 CONTRACT CHANGE ORDER NO. 2 23 Under sidewalk Drain D-27 EA 1 $1,300.00 $1,300.00 1 $1,300.00 $1,3r 10 $6. /0 24 Storm Drain Cover D-25 EA 1 $600.00 $600.00 1 $600.00 25 Fill Material CY 12 $150.00 $1,800.00 12 $150.00 $1,800.00 26 Retaining Wall SF 260 $85.00 $22,100.00 260 $85.00 $4,000.00 $22,100,00 $4,000.00 27 Extra work due to Base/sub- base betterment of soil conditions LS 1 rvf,.. vu....I. r4-,..... V 28 Extra work due to Base/Subbase betterment of pavement conditions on E. 16`h Street LS 1 $33,238.72 $33,238.72 $1,129,312.49 Totals $1,023,439.77 DISCUSSION: Line Item 28 has been added to the contract at the City's request to provide compensation to the contractor for extra work needed to remove base/sub-base material due to encountering expansive soils, which could not be compacted properly on E. 16th Street between L Avenue and N avenue. This item includes mobilization, removal and replacement of base and AC pavement, removal and installation of traffic loops, pavement fabric, milling a pavement hump, seal and sand finish and double yellow line stripping. The work will include labor, material and equipment. The requested work will ensure that the current street improvements currently being done will provide quality and durability to our pavements. 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 $33,238.72 from the current contract price of $1,096,073.77 to a new contract price of $1,129,312.49. 2. The contract time is increased by thirty (30) working days. The contract completion date was previously established as Friday, February 25, 2005. The new contract completion date is therefore established as Friday, April 8, 2005. 3. 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. Frank and Son Paving, 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 2 CONTRACT CHANGE ORDER NO. 2 RECOMMENDED FOR APPROVAL BY: Alberto Giie_•, Engineering APPROVED BY: neer Ms. Alicia Vasquez, President Frank and Son Paving, Inc. Date Mr. Frank Vasquez, Vice President Frank and Son Paving, Inc. Date Stephen M. Kirkpatrick City Engineer Date Page 3 FROM :FRANK F. SON PAUING,INC. FAX NO. :619 4209020 Jul. 21 2005 10:19AM P1 EXHIBIT "A" FRANK AND SON ASPHALT / PAVING 1019 Third Avenue; Chula Vista, CA 91.91.1 Tel: (619) 422-$322 Fax: (619) 420-9020 PRO.POSA.L ANI) CONTRACT Date: July 21, 2005 • ATTN: AL.BIRT GRIEGU Contract #1021 To: CITY OF NATIONAL CITY Office: 619 336.4386 Fax: 619 336-4397 Job Location: NATIONAL CITY STREET RESiURFACI.NG.PROJECT .1 propose to furnish all materials and perform all labor necessary to complete following 1.CFLANGES TO "M" AVENUE TO E. 1617t.t STREET. 2.(.::HANGES ON E. I61/4 STREET FROM: "L" TO "N" AVFNUE. EXCialde5. Boats, fees, permits, testing; engineering, grad.e stakes, trenching, Grinding, herbicide Wood, headers, Surveying, Traffic Control, wheel stops, backfilling, .Berms, drainage, signage, sleeves, conduit, seal and sand and concrete work, sniping, storm drains, exporting materials, soil tenting and concrete work. All of above work to be completed in a substantial and workmanlike manner according to Standard practice for the amount Of Thirty Three Thousand Two hundred Thirty Eight Dollars and Seventy Two C:entit Additional Insured: (Optil.) A Charge of $150.00 for each Add Insured ($33,23$,i21. .Additional Umbrella (Optil.) A Charge of additional cost.(Pifot Included (Not Contract) on Contract) Progress payments to he made a3 tblIdwS_ , I0(M......., ns the work progresses to the value of one hundred per cent (100%) of all work conlpietcd. The entire atstount of contract to he paid within, no -later than upon completion Any alteration or deviation from the above specification involyiig extra cost of tnaterna or labor will on v by executed vpcar written orders lbr same, and will become an extra charge over the sum mentioned in this contract. All agreements must be made in writing. Terns; Net cash Net Thirty Internet at 1 %a" per month (IPA per annnm) charge on all past duo acComas, plus collection costs, including, attorney funs. ATTN: FRANK AND SON .PAVINC,'INC. Nome and Registration Nwnhcr of any salesperson who solicited. Respectfully submitted, or negotiated this contract 3v Thank and ,Son Paving too. Name Francisco Vasquez Address: 1019 Third Ave Chula Vista CA 9191.1 are required by law to he licensed and regulated by the Telephone; (619) 422 i11 Contractor's State License Hoard, Any questions concerning n Contractor's Starr License No. 612515 contractor may -be referred to the 'registrar of the board whosc You, tic I aJ per, many c.nnecl ihi address is; s transawion at any lime prior to midnight of the [bird business Contractor's ,State ticini e Bond day otter Ih date of this'Tnnsuctirm_ 10211 N Street Sacramento, California 9581.4 ACCEPTANCE You arc hereby authorized to Foolish all materials and labor requiredto complete the work mentioned in the above proposal, for which ----.__-_ agree to pay the amount mentioned in said proposal, and according I the tents thereof ACCI PTE1:) Date 2004 1 i RANK & SON PAVING,,INC.. • 1019 Third Maass; Chula Vista, C.A. 91911 Off (619) 4224322 PAYMENT REQUEST NO. 006 NATIONAL CITY STREET RESURFACING PROJECT NO.03-01 PAY ITEM DESCRIPTION 1 I obilizationlDerrfobiliZatiCn 2 Clearing & Grubbing 3 Unclassified Excavation 4 5 6 7 8 9 Traffic Control R&R 1.5" AC on 9.. Base R&R 2" AC on 10" Base R&R 3" AC on 8" Base R&R AC only(3") Pavement Mitring 10 Pavement Fabric 11 AC only 12 Adjust Manholes to Grade 13 Adjust Monuments to E1rade 14 R8R Cross Gutter 15 New Cross Gutter 16 R&R Sidewalk 17 New G-1 Curb 18 R&R Curb & Gutter 19 Traffic,Strtpin0 20 Reinstall Traffic Loops 21 New Driveway 22 R&R Driveway 23 Under Sidewalk 24 Storm Drain 25 Fal Material 26 Retaining Wail 26043 LF 66082 SY ESTIMATED QUANTITY 1 LS LS 400 CY 1 LS 83944 SF 39454 SF r UNIT VALUE PRICE: OF ITEM $10,000,00 $ 10,000.00 $15,000.00 5. 15,000.00 $30.00 $. 12,000.00 $20, 000:00 $ 20,000.00 $2.70 $, 226,648.80 $3,75 $. 147.952.50 4900 5F $5.50 5. 26,950.00 2556 TOM,, $55i00 $ 140,580.00 $1.13 $. 29,428.59 50.712 $. 47,950.38 4625 TON $4770 $ 220,612.50 43 EA 7 EA 3788 SF 154 SF 3696 85 203 1 19 432 386 1 1 12 260 SF LF LF LS EA $F 5F EA EA cY SF $350,00 $, 14,000.00 $550,00 $ 3,850.00 $7.50 $, 26,410.00 $7:00 $, 1,078.00 $6,5c? $ 24,024.00 $16,00 $, 1,3360.00 $25,00 $ 5,075.00 $13,000.00 $ 13,000.00 4 $260:00 S. 4,940.00 $6.00 $. 2,592.00 J8,00 $ 3,088.00 $1,300.00 $, 1,300.00 $600.00 $ 800.00 $150.00 $. 1,800.00 $85.00 $ 22,100.00 TOTAL $1,023,439.77 QUANTITY COMPLETED THIS MONTH TO DATE , LS 1 LS 1 CY LS 1 SF 83,356;03 SF 39454 SF 490Q TON 2556 LF' 26043 SY 65632.22 TON 4625 EA 40 7 SF 3788 SF 154 SF 3698 LF 85 LF 203 LS 1 EA 19 SF 431.993 SF 386 EA 1 1 r CY 10.991 SF 260 DATE iWo 3/21bus 4f13f05 IZ2906 Mitt 5,2005 &woof r 118=0 31.2005 PERCENT COMPLETE LS LS CY SF SF SF TON LF SY TON EA EA SF SF SF LF lF LDS EA SF SF EA EA cY SF 100% 100% 100% 100% CCO N002 VALUE COMPLETED THIS MONTH TO DATE $ 10_000,00 $ - $ 15;000.00 $ - S 12,000.00 $ 99%_ $ 100% $ 100% . $ 100% 100% $ 99% $ 100% $ 100% $ 100% 100% 100% 190°% 100% $ 100%. $ 100% $ 100% $ 100%. $ 100% 100% . $ 92% 100% $ TO DATE TOT • $ RETENTION DUE $ REVISED AMOUNT $ cao#01 $ CCO #02 $ Total Due $ - $ 20000.00 $ 225,061.28 $ 147 952.50 $ 26,950.00 $ 140L580.00 $ 29,424.59 $ 48,730.14 $ 220 612.50 14 000.00 $ 1,078.00 $ 24.024.00 1,360.00 $ 5,075.00 $ 13,000.00 $ 4,940.00 $ 2 591.96 $ 1,300.00 $ 800.00 $ t,648.65 $ 22,100.00 $ 1,021,380.62 102,138.06 5 1 72,633.99 33 238.72 $ 33,238.72 33,23t72 $ 1,127,253.33 ' JN I ''. N I Odd NOS 8 NNidd m WCVV:OI SOOZ PO "fieW FAX NO. :619 4209020 May. 04 2005 10:45AM P3 FROM =FRANK 8 SON PAUING,INC. • ''FRANK & SON 17617177 • ■ ■ ■ • ■ - ■ - • r • (a19)422-$J 2 • COMPANY PROJECT CONTRACT ll AXTEN'IlON DATZ FLANK & SON Street Resurfacing Project CCO #002 ALBERT 3/25/05 PAVING, INC. FY 03-04, SPEC. 03-11 GRIEGO 4/13/05 4- . PERPORMED DESCRIPTION OMIT PRICE TOTAL QVAN7TTY #20 Reinstall Traffic Loops 11 EA $ 260.00 $ 2,1160.00 #10 Pavement Fabric 1033 SY $ 0.712 $ 2,871.50 $ 5,731,50 '4fANN 10,2005 "M" Avenue A 16th Street (Clogs Pumping excavation In somas areae)ADDITIONAL W (1) Labor Foreman 5.5 HRS $ 44.04 $ 176.16 (2) Labors 4 HRS $ 30.33 $ 242.64 bump Truck 5 HRS $ 60.00 $ 300.00 Dump Fees 3 loads $ 150.00 $ 150.00 Backhoe 5.5 HP.5 $ 40.00 $ 220.00 $ 1,088.80 AIA4CN 17,2000 "M" Avenue & 16th Street (Some Drew to be excavated about 1'.)ADDIT'IONAL WORK (2) Operators 6 HRS $ 44.04 $ 528.48 (1) Teamster 6 HRS $ 30.33 $ 181.96 Peterbilt Truck 6 HRS $ 70.00 $ 420.00 Skiplooder 6 HRS $ 25.00 $ 150.00 Roller 6 HR5 $ 40.00 $ 240.00 bumpfees 3loads $ 60.00 $ 180.00 i $ 1,700.46 .1" CH 24, 2005 E. 16TH Street from "L" Avenue to 'N" Avenue Grind 3" of AC on 392'x5'x2'= 3920 s.f. $ 0.85 $ 3,332.00 Ploce 3" of AC on 392'x5'x2'r. 3920 s.f. $ 2.54 $ 9,937.20 Mill Hump Tapered 1" on 160'x5'= 800 It $ 0.85 $ 680.00 Place 3" of AC on 58x38= 2204 s.f. $ 2.54 $ 5,587.14 Seal & Sand Finish on 392'x38'•38'x60'7. 17t76 cf. $ 0.12 $ 2,061.12 Stripe double yellow lines on 430 I.f. $ 4.35 $ 1,870.50 Mobilization 6 Demobilization Is $ 1,250.00 $ 1,250.00 I $ 24,717.96 All Work Performed and Descibed Above is Outside of tht Original Contract Price. TOTAL: $ 33,238.72 (�7 RECORDING REQUESTED BY WHEN RECORDED MAIL TO: NAME: CITY OF NATIONAL CITY ADDRESS: 1243 NATIONAL CITY BOULEVARD NATIONAL CITY, CA 91950 NOTICE OF COMPLETION CALIFORNIA CIVIL CODE SECTION 3093 NOTICE IS HEREBY GIVEN of the completion on August 16, 2005, of the NATIONAL CITY RESURFACING PROJECT FY__03-04, SPEC. NO. 03-11 Work of improvement or portion of work of improvement under construction or alteration. on the premises located at various locations in National City, Ca 91950 Street Address City State Zip Code The undersigned owns the following interest or estate in said property: City of National City Nature of the interest or estate of owner (mortgagor, lessee, etc.) Said work of improvement was performed on the property pursuant to a contract with FRANK AND SON, INC Name of Original Contractor The following work and material were supplied. Foreman, Laborers, Dump Trucks, Grinder,. Ruckhoe, Paver, Concrete Mixers, Concrete Pumps, Milling Machine, Compaction Roller, and Tire Roller General statement of kind of labor, services, equipment or materials The names and addresses of co -owners are: 2SLA Joint tenants, tenants in common, or other owners Dated: , 2005; Signature of Owner Nick Inzunza, Mayor City of National City, 1243 National City Blvd., National City, CA 91950 I, the undersigned, say: I have read the foregoing Notice of Completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury that the forgoing is true and correct. Executed on August 16, 2005, at National City, California. Signature: NICK INZUNZA, MAYOR FORMS/N00097- I 0 City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE August 16, 2005 10 AGENDA ITEM NO. /ITEM TITLE Resolution authorizing the Mayor to execute an agreement with D-Max Engineering Inc., in the amount of $200,000 in order to continue providing the City with engineering and environmental services and assist implementing National Pollutants Discharge Elimination System (NPDES) Permit requirements PREPARED BY Din Daneshfar DEPARTMENT Engineering EXT.4387 EXPLANATION L See attached explanation. CEnvironmental Review (-Financial Statement N/A MIS Approval Approved By: M. This agreement is for contract cost with a "Not to Exceed" amount of $200,000. Funds are available in Account No.125-421-222-299. >STAFF RECOMMENDATION Adopt the Resolution. � L r Finance giiRrctor Account No. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. 1. Resolution 2. Proposed Agreement Form (3 original copies) A-200 (Rev. 7/03) RE: Resolution authorizing the Mayor to execute an agreement with D-Max Engineering, Inc. in the amount of $200,000 in order to continue providing the City with engineering and environmental services and assist implementing National Pollutants Discharge Elimination System (NPDES) Permit requirements Based upon requirements of the adopted National Pollutants Discharge Elimination System (NPDES) permit No. CAS107758, Order 2001-01, and the City's Jurisdictional Urban Runoff Management Program (JURMP), the City is committed continually to implement its efforts in various aspects of this program and maintain its compliance with the permit requirements. The program consists of the implementation of the Municipal, Industrial, Commercial, Residential, Land Use Planning for New Development/Redevelopment, Construction, Illicit Connection/Illegal Discharge, Education, Public Participation, and Program Assessment components as outlined in the City's JURMP. On November 16, 2004, by the City Council Resolution No. 2004-208 a contract agreement was executed between the City and D-Max Engineering to continue assisting the City in implementation of the annual NPDES program (04-05)_ D-Max Engineering has been providing quality services and implementing the City's NPDES program on schedule in a professional manner. This firm is very familiar with the City's current NPDES program, storm drain system, and the State Permit requirements. Staff is recommending D-Max Engineering to continue providing the as- needed services for this year's NPDES program (05-06). The proposed scope of work is consistent with the requirements of the NPDES permit and commitments made by the City in its JURMP. The contract before Council for approval is for the general environmental and engineering services for this program, and includes the following tasks: • Coordinate the program • Update the City's Jurisdictional Urban Runoff Management Program (JURMP). • Continue developing Data Management. • Assist the City to Comply with its Inspections Program. • Assist the City to Implement Standard Urban Storm -water Mitigation Plan (SUSMP). • Implement Dry Weather Analytical Monitoring and Field Screening. • Prepare JURMP Annual Report. • Assist the City to Develop Assessment of Program Effectiveness. • Assist the City in Implementing its Watershed Urban Runoff Management Programs (WURMP). • Assist the City in Performing its Training and Education Programs. • Provide other related Storm Water Quality Services D-Max Engineering has proposed a plan, outlined in Exhibit "A", to implement this year's program. The work can be accomplished through a new contract agreement. The final scope of work is attached as part of agreement that is being presented to the Council for approval. The fee for performing the work is a "Not to Exceed" amount of $200,000. RESOLUTION 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH D-MAX ENGINEERING, INC., IN THE AMOUNT OF $200,000 IN ORDER TO CONTINUE PROVIDING THE CITY WITH ENGINEERING AND ENVIRONMENTAL SERVICES, AND ASSIST IMPLEMENTING NATIONAL POLLUTANTS DISCHARGE ELIMINATION SYSTEM (NPDES) PERMIT REQUIREMENTS WHEREAS, the City desires to employ a contractor to continue providing the City with engineering and environmental services, and to assist implementing National Pollutant Discharge Elimination System ("NPDES") permit requirements; and WHEREAS, the City has determined that D-Max Engineering, Inc. is a professional engineering and environmental consulting firm, and is qualified by experience and ability to perform the services desired by the City, and D-Max Engineering, Inc. is willing to perform such services. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the Mayor to execute an agreement with D-Max Engineering, Inc. in the amount of $200,000 in order to continue providing the City with engineering and environmental services, and assist implementing National Pollutants Discharge Elimination System Permit requirements. Said Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 16th day of August, 2005. Nick Inzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND D-MAX ENGINEERING, INC. THIS AGREEMENT is entered into this 16th day of August, 2005, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and D- Max Engineering, Inc., (the "CONTRACTOR"). RECITALS WHEREAS, the CITY desires to employ a CONTRACTOR to provide the City with the engineering and environmental services for implementing the National City's National pollutants Discharge Elimination System (NPDES) program, and Jurisdictional Urban Runoff Management Program (JURMP). WHEREAS, the CITY has determined that the CONTRACTOR is a Professional Engineering and Environmental consulting firm, and is qualified by experience and ability to perform the services desired by the CITY, and the CONTRACTOR is willing to perform such services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF CONTRACTOR. The CITY hereby agrees to engage the CONTRACTOR and the CONTRACTOR hereby agrees to perform the services hereinafter set forth in accordance with all terms and conditions contained herein. The CONTRACTOR represents that all services required hereunder will be performed directly by the CONTRACTOR or under direct supervision of the CONTRACTOR. 2. SCOPE OF SERVICES. The CONTRACTOR will perform services as set forth in the attached Exhibit "A". The CONTRACTOR shall be responsible for all research and reviews related to the work and shall not rely on personnel of the CITY for such services, except as authorized in advance by the CITY. The CONTRACTOR shall appear at meetings cited in Exhibit "A" to keep staff and City Council advised of the progress on the project. The CITY may unilaterally, or upon request from the CONTRACTOR, from time to time reduce or increase the Scope of Services to be performed by the CONTRACTOR under this Agreement. Upon doing so, the CITY and the CONTRACTOR agree to meet in good faith and confer for the purpose of negotiating a Revised April 2005 corresponding reduction or increase in the compensation associated with said change in services, not to exceed a factor of 10 % from the base amount. 3. PROJECT COORDINATION AND SUPERVISION. Mr. Din Daneshfar hereby is designated as the Project Coordinator for the CITY and will monitor the progress and execution of this Agreement. The CONTRACTOR shall assign a single Project Director to provide supervision and have overall responsibility for the progress and execution of this Agreement for the CONTRA- CTOR. Mr. Arsalan Dadkhah thereby is designated as the Project Director for the CONTRACTOR. 4. COMPENSATION AND PAYMENT. The compensation for the CONTRACTOR shall be based on monthly billings covering actual work performed. Billings shall include labor classifications, respective rates, hours worked and also materials, if any. The total cost for all work described in Exhibit "A" shall not exceed the schedule given in Exhibit "B" (the Base amount) without prior written authorization from the Project Manager. Monthly invoices will be processed for payment and remitted within thirty (30) days from receipt of invoice, provided that work is accomplished consistent with Exhibit "A" as determined by the CITY. The CONTRACTOR shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CITY and for furnishing of copies to the CITY, if requested. 5. LENGTH OF AGREEMENT. Completion dates or time durations for specific portions of the Project are set forth in Exhibit "C". 6. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda, Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONTRACTOR for this Project, whether paper or electronic, shall become the property of the CITY for use with respect to this Project, and shall be turned over to the CITY upon completion of the Project, or any phase thereof, as contemplated by this Agreement. Contemporaneously with the transfer of documents, the CONTRACTOR hereby assigns to the CITY and CONTRACTOR thereby expressly waives and disclaims, any copyright in, and the right to reproduce, all written material, drawings, plans, specifications or other work prepared under this agreement, except upon the CITY's prior authorization regarding reproduction, which authorization shall not be unreasonably withheld. The CONTRACTOR shall, upon request of the CITY, execute any further document(s) necessary to further effectuate this waiver and disclaimer. The CONTRACTOR agrees that the CITY may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium or method utilize the 2 Revised April 2005 CONTRACTOR's written work product for the CITY's purposes, and the CONTRACTOR expressly waives and disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to intellectual property and artistic works. Any modification or reuse by the CITY of documents, drawings or specifications prepared by the CONTRACTOR shall relieve the CONTRACTOR from liability under Section 14 but only with respect to the effect of the modification or reuse by the CITY, or for any liability to the CITY should the documents be used by the CITY for some project other than what was expressly agreed upon within the Scope of this project, unless otherwise mutually agreed. 7. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners or joint venturers with one another. Neither the CONTRACTOR nor the CONTRACTOR'S employees are employee of the CITY and are not entitled to any of the rights, benefits, or privileges of the CITY's employees, including but not limited to retirement, medical, unemployment, or workers' compensation insurance. This Agreement contemplates the personal services of the CONTRACTOR and the CONTRACTOR'S employees, and it is recognized by the parties that a substantial inducement to the CITY for entering into this Agreement was, and is, the professional reputation and competence of the CONTRACTOR and its employees. Neither this Agreement nor any interest herein may be assigned by the CONTRACTOR without the prior written consent of the CITY. Nothing herein contained is intended to prevent the CONTRACTOR from employing or hiring as many employees, or subcontractors, as the CONTRACTOR may deem necessary for the proper and efficient performance of this Agreement. All agreements by CONTRACTOR with its subcontractor(s) shall require the subcontractor to adhere to the applicable terms of this Agreement. 8. CONTROL. Neither the CITY nor its officers, agents or employees shall have any control over the conduct of the CONTRACTOR or any of the CONTRACTOR'S employees except as herein set forth, and the CONTRACTOR expressly agrees not to represent that the CONTRACTOR or the CONTRACTOR's agents, servants, or employees are in any manner agents, servants or employees of the CITY, it being understood that the CONTRACTOR, its agents, servants, and employees are as to the CITY wholly independent contractors and that the CONTRACTOR'S obligations to the CITY are solely such as are prescribed by this Agreement. 9. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR, in the performance of the services to be provided herein, shall comply with all applicable State and Federal statutes and regulations, and all applicable ordinances, rules and regulations of the City of National City, whether now in force or subsequently enacted. The CONTRACTOR, and each of its subcontractors, shall obtain and maintain a current 3 Revised April 2005 City of National City business license prior to and during performance of any work pursuant to this Agreement. 10. LICENSES, PERMITS, ETC. The CONTRACTOR represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. The CONTRACTOR represents and covenants that the CONTRACTOR shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, or approval which is legally required for the CONTRACTOR to practice its profession. 11. STANDARD OF CARE. A. The CONTRACTOR, in performing any services under this Agreement, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the CONTRACTOR'S trade or profession currently practicing under similar conditions and in similar locations. The CONTRACTOR shall take all special precautions necessary to protect the CONTRACTOR's employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site. B. Unless disclosed in writing prior to the date of this agreement, the CONTRACTOR warrants to the CITY that it is not now, nor has it for the five (5) years preceding, been debarred by a governmental agency or involved in debarment, arbitration or litigation proceedings concerning the CONTRACTOR's professional performance or the furnishing of materials or services relating thereto. C. The CONTRACTOR is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the project the CONTRACTOR has been retained to perform, within the time requirements of the CITY, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONTRACTOR has notified the CITY otherwise, the CONTRACTOR warrants that all products, materials, processes or treatments identified in the project documents prepared for the CITY are reasonably commercially available. Any failure by the CONTRACTOR to use due diligence under this sub -paragraph will render the CONTRACTOR liable to the CITY for any increased costs that result from the CITY's later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time. 12. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONTRACTOR will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONTRACTOR agrees to post in conspicuous 4 Revised April 2005 places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause. 13. CONFIDENTIAL INFORMATION. The CITY may from time to time communicate to the CONTRACTOR certain confidential information to enable the CONTRACTOR to effectively perform the services to be provided herein. The CONTRACTOR shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CITY. The CONTRACTOR shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services to be provided herein. The foregoing obligation of this Section 13, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the CONTRACTOR, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONTRACTOR without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONTRACTOR by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. The CONTRACTOR shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this Agreement without the prior written consent of the CITY. In its performance hereunder, the CONTRACTOR shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. CONTRACTOR shall be liable to CITY for any damages caused by breach of this condition, pursuant to the provisions of Section 14. 14. INDEMNIFICATION AND HOLD HARMLESS. The CONTRACTOR agrees to defend, indemnify, and hold harmless the City of National City, its officers and employees, against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONTRACTOR's negligent performance of this Agreement. 15. WORKERS' COMPENSATION. The CONTRACTOR shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar state or Federal acts or laws applicable; and shall indemnify, and hold harmless the CITY and its officers, and employees from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including reasonable attorney's fees and defense costs presented, brought or recovered against the CITY or its officers, employees, or volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the CONTRACTOR under this Agreement. 5 Revised April 2005 16. INSURANCE. The CONTRACTOR, at its sole cost and expense, shall purchase and maintain, and shall require its subcontractors, when applicable, to purchase and maintain throughout the term of this agreement, the following insurance policies: ® A. If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence. B. Automobile insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include non -owned vehicles. C. Comprehensive general liability insurance, with minimum limits of $1,000,000 combined single limit per occurrence, covering all bodily injury and property damage arising out of its operation under this Agreement. D. Workers' compensation insurance covering all of CONSULTANT's employees. E. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, employees, and volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CITY of cancellation or material change. F. Said policies, except for the professional liability and worker's compensation policies, shall name the CITY and its officers, agents and employees as additional insureds. G. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the CONTRACTOR shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agree- ment. ment. H. Any aggregate insurance limits must apply solely to this Agree - Insurance shall be written with only California admitted companies which hold a current policy holder's alphabetic and financial size category rating of not less than A VIII according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the City's Risk Manager. J. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY's Risk Manager. If the CONTRACTOR does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CITY may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. 17. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out -of -court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys' fees. 6 Revised April 2005 For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorney's fees to the prevailing party if other than the CITY shall, in addition, be limited to the amount of attorney's fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual amount of attorney's fees incurred by the prevailing party. 18. MEDIATION/ARBITRATION. If a dispute arises out of or relates to this Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute by mediation in San Diego, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association (the "AAA") before resorting to arbitration. The costs of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this Agreement, or breach thereof, which is not resolved by mediation shall be settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration Rules of the AAA then existing. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any court having jurisdiction over the subject matter of the controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for and bear the costs of its own experts, evidence and attorneys' fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. 19. TERMINATION. A. This Agreement may be terminated with or without cause by the CITY. Termination without cause shall be effective only upon 60- day's written notice to the CONTRACTOR. During said 60-day period the CONTRACTOR shall perform all services in accordance with this Agreement. B. This Agreement may also be terminated immediately by the CITY for cause in the event of a material breach of this Agreement, misrepresentation by the CONTRACTOR in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the CITY. C. Termination with or without cause shall be effected by delivery of written Notice of Termination to the CONTRACTOR as provided for herein. D. In the event of termination, all finished or unfinished Memoranda Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONTRACTOR, whether paper or electronic, shall immediately become the property of and be delivered to the CITY, and the CONTRACTOR shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CITY by the CONTRACTOR's breach, if any. Thereafter, ownership of said written material shall vest in the CITY all rights set forth in Section 6. E. The CITY further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONTRACTOR; (2) a reorganization of the CONTRACTOR for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONTRACTOR. 7 Revised April 2005 20. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To the CITY: Stephen M. Kirkpatrick City Engineer City of National City 1243 National City Boulevard National City, CA 91950-4301 To the CONTRACTOR: Arsalan Dadkhah Project Manager/Principal D-Max Engineering, Inc. 8380 Miiramar Mall, suite 222 San Diego, CA 92121 Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to .accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty-eight (48) hours by letter mailed or delivered as specified in this Section. 21. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this Agreement, the CONTRACTOR shall not perform services of any kind for any person or entity whose interests conflict in any way with those of the City of National City. The CONTRACTOR also agrees not to specify any product, treatment, process or material for the project in which the CONTRACTOR has a material financial interest, either direct or indirect, without first notifying the CITY of that fact. The CONTRACTOR shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The CONTRACTOR shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the CITY in which the CONTRACTOR has a financial interest as defined in Government Code Section 87103. The CONTRACTOR represents that it 8 Revised April 2005 has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the CITY. II If checked, the CONTRACTOR shall comply with all of the reporting requirements of the Political Reform Act and the National City Conflict of Interest Code. Specifically, the CONTRACTOR shall file a Statement of Economic Interests with the City Clerk of the City of National City in a timely manner on forms which the CONTRACTOR shall obtain from the City Clerk. The CONTRACTOR shall be strictly liable to the CITY for all damages, costs or expenses the CITY may suffer by virtue of any violation of this Paragraph 21 by the CONTRACTOR. 22. MISCELLANEOUS PROVISIONS. A. Computation of Time Periods. If any date or time period ,provided for in this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or federal, state or legal holiday. B. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. C. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. D. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference for all purposes. Exhibit A — Scope of Services Exhibit B — Cost Summary Exhibit C — Progrm Schedule F. Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. G. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. H. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. I. Entire Agreement. This Agreement supersedes any prior agree- ments, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an 9 Revised April 2005 employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. J. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. K. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) each party and such party's counsel and advisors have reviewed this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CITY D-MAX ENGINEERING, INC. (Corporation — signatures of two corporate officers)) (Partnership — one signature) (Sole proprietorship — one/signature) / By: By: � . .�/cF��L P Nick Inzunza, Mayor (Name) Rlsa//ate 7a )274 4r i'Y'.PIU,ow J` (Title) APPROVED AS TO FORM: By: �ia-aff/ George H. Eiser, III (Name) alc City Attorney 10 Seere17 (Title) 7 Revised April 2005 w.IMILINN MINIM a MIN -- -AMOI ��!~1 7 EXHIBIT A SCOPE OF SERVICES The scope of services for this project will include but are not limited to the following tasks. Project Coordination. Provide all project coordination necessary to perform the work for the City's National Pollutants Discharge Elimination System program implementation. Project coordination will include biweekly/monthly project status meetings with the City of National City and other related agencies for the duration of this contract. Also included in the program coordination is: • Management of the program kick-off meeting and all necessary meetings with other concerned and involved agencies and community groups. • Management of all project -related meetings, including agenda and meeting minute preparation and distributions. Data Management. In order to facilitate annual reporting, and to manage the JURMP inspection program on a day-to-day basis, data must be tracked and stored in a reliable, easy -to -use manner. This includes data from the City's construction, industrial, commercial, and municipal programs. D-MAx has created three separate Microsoft Access databases for the City: one each for construction inspections, industrial/commercial inspections, and a variety of municipal activities. To more effectively manage this data, D-MAx will merge the three databases into one unified database. Further, additional tracking capabilities for the City's education and SUSMP programs may be added as well. As the City Engineering Department has recently created a tracking database including information about a variety of permits, D- MAx will also work with the City to determine how that tracking database can best be integrated with the databases that D-MAx has created for the City. D-MAx will also regularly provide the City with copies of the databases it maintains. In addition to database management, D-MAx will also assist the City in analyzing business license listings to determine JURMP prioritizations for new industrial and commercial businesses in the City. Those businesses will then be flagged for inspection in accordance with the procedure listed in the JURMP. Assist In City's Compliance Inspection Program. We will assist the City's compliance inspection team with the following services: • Conducting construction field inspections • Conducting industrial and commercial field inspections • Conducting follow-up inspections • Provide assistance in data entry into databases 1 It w•Mi — I MAMA M --- MIN Ara lirMO wtAfA SUSMP Implementation and Document Preparation. We will assist the City in with implementation of the Standard Urban Storm Water Mitigation Plan (SUSMP) program as follows. Note that review of SUSMP and (Storm Water Pollution Prevention Plan) SWPPP documents are included under a different contract. • Assist in complying with requirements of the Standard Urban Storm Water Mitigation Plan (SUSMP) • Conduct coordination meetings with various City departments and assist in refinement of the SUSMP process • Review erosion and sediment control plans • Assist in selecting and implementing BMPs • Conduct educational presentations as required in Section 9 of the City's JURMP • Prepare SUSMPs and construction SWPPPs for the City Capital Improvement Projects Dry Weather Analytical Monitoring and Field Screening. This task will include conducting one round of field screening in accordance with the requirements of the RWQCB Municipal Permit. The objective of this program is to detect and eliminate illicit connections and illegal discharges (IC/IDs) in order to minimize the negative impacts of human activities on receiving water bodies. The City of National City has identified 15 primary monitoring stations where data will be collected during the dry weather analytical and field screening monitoring program. This task will include the followings: Visual Observations:. Visual observations include looking for evidence of dry weather flows such as staining, corrosion, sediment, surrounding vegetation, algae, mosquito larvae, insects, rodents and other animals in the vicinity of the outfall. . Field Analysis: At each site the flow and its temperature will be measured and a sample will be taken for field analyses of the following parameters: • Specific conductance • Temperature • Turbidity • pH • Reactive Phosphorus • Nitrate Nitrogen • Ammonia Nitrogen • Surfactants (MBAS) Analytical Monitoring: Water samples from 25 percent of the sites where ponded or flowing water is observed, will be collected and submitted to a California Department of Health Services certified laboratory for analysis of the following constituents: • Total hardness • Surfactants (MBAS) • Oil and grease 2 NMI MIN _ �__�_ MN Mil f MI A V 4111111bIl A • Diazinon and Chlorpyrifos • Cadmium (Dissolved) • Copper (Dissolved) • Lead (Dissolved) • Zinc (Dissolved) • Enterococcus bacteria • Total Coliform bacteria • Fecal Coliform bacteria Preparation of a Summary Report: At the conclusion of the field screening program, a report will be prepared to summarize the observations and the results of the study. The report will include our interpretation of the field data and test results as to the possible presence of IC/IDs. Follow -Up Investigations. During the dry weather field screening program if field investigations do not reveal a specific source of contamination, or if the results of the laboratory analysis indicate presence of pollutants in excess of action levels, further investigation will be conducted which may include the following steps: • Tracing flows or discharges upstream • Conducting field screening sampling • Contacting dischargers • Sampling for laboratory analysis • Documenting source investigations At the conclusion of the follow-up investigations, a summary report will be prepared summarizing the findings, conclusions and recommendations. Preparation of JURMP Annual Report. As a requirement of the Municipal Permit, the City must produce an annual report to the RWQCB detailing the activities that have been conducted during the previous reporting period to reduce pollutants in urban runoff. The JURMP Annual Report serves to document the activities that the City has conducted during the past reporting period of July 1, 2003 through June 30, 2004. In order to prepare the required report we will conduct the following: Coordinate Information Transfer with City personnel Contacting several City departments to acquire information on the program implementation and special activities carried out through the year. We will have initial meetings with responsible personnel at each department to prepare a plan for receiving information regarding the implementation of the City's JURMP. We will stay in contact with the City's departments thereafter. Pertinent information will be acquired under this task to be used in the report. 3 %, w- - wv- MINI ws w �Ulm - MIN AIM A V i� .111LiA Prepare Annual JURMP Report This task includes the preparation of the Annual JURMP Report in accordance with the Municipal Permit Section I. This includes addressing the following: • Comprehensive Description of Activities Land -Use Planning Construction Existing Development Education Illicit Discharge Detection and Elimination Public Participation Assessment of JURMP Effectiveness Fiscal Analysis • DocumentationlAccounting of Activities Illicit Discharges Report Inspections Conducted Enforcement Actions Education Efforts • Public Participation Mechanism • JURMP Revisions • Special Investigations • Budget • ineffective Management Measures • Identification of Water Quality Improvements • Copermittee Collective Activities • Assessment of Program Effectiveness. o The County of San Diego in association with assessment work group has developed some methodologies for assessing the effectiveness of the storm water program. These methodologies require gathering and presenting all the information of the Copermittee's activities including BMPs and identifying expected effects on the storm water pollution prevention. We will assist the City to evaluate the effectiveness of the City's program in accordance with the County and work group proposed methodologies. Training and Education. D-MAx will conduct educational workshops at the City's request to target audiences identified in Section 9 of the JURMP document. Educational content will cover a variety of topics related to storm water quality and watershed concepts listed in Section 9.2 of the JURMP and be tailored to each specific audience. Suggested workshops and target audiences include the following: 4 M�v MN _ MEW I= Mil 411MI INNIMP'ab111, Planning and Public Works/Engineering Departments The goal of this workshop will be to inform the Planning and Engineering Departments of general concepts listed in Section 9.2 and to address new Permit requirements relevant to each department. The Permit requires changes in land -use planning and engineering aspects of new development and redevelopment projects within the City, including the implementation of the City's SUSMP. The workshop will be targeted towards public works employees and will also cover the general concepts of Section 9.2, and further address changes in public works operations required by the Municipal Permit. Such changes include construction site management requirements and implementation and maintenance of best management practices. Construction Inspectors The educational workshop for construction inspectors will include general concepts listed in Section 9.2 and additionally cover such topics as BMP implementation and maintenance, good housekeeping measures, site inspections and inspection frequency. School Students We will assist the City in providing training workshops for school students. The topics for these workshops include the source of pollutants, the impact of pollutants on the receiving water bodies and BMPs to prevent the pollutions. Additionally we assist the City staff to develop educational pamphlets to be sent to residential, industrial and commercial facilities, preparing articles to be published in the local newsletters. Watershed Urban Runoff Management Programs. City of National City is located within the San Diego Bay watershed. The Municipal Permit requires each Copermittee to collaborate with other Copermittees within its watershed to identify and mitigate the highest priority water quality issues/pollutants in the watershed. D-MAx will coordinate with the watershed Copermittees on behalf of the City of National City and fulfill the group requirements per the City instructions. In each of the last two years, we have assisted the City by helping write the San Diego Bay WURMP Annual Reports, for which the City has been listed as among the primary authors of the 2002-03 and 2003-04 Annual Reports. Representing The City in Various Meeting. D-MAx will represent the City of National City in various meetings including those with other Copermittees, the Regional Board, and/or Regional Workgroups. Other Storm Water Services. It has been our experience with other local municipalities that storm water related situations arise from time to time that require immediate or expert action. D-MAX will be pleased to provide any other as -needed on -call services to the City of National City, which has not been identified above. 5 !`s ....— — - - MIN -- In W Num A V -imornswah•111011A EXHIBIT B COST SUMMARY & FEE SCHEDULE We propose to complete the aforementioned services on a time and materials basis (not to exceed $200,000 total) in accordance with the attached schedule of fees. Our estimated costs are listed below. Task Description Estimated Cost Project Coordination $18,000 Data Management $30,000 Assist In.City's Compliance Inspection Program $20,000 SUSMP Implementation and Document Preparation $25,000 Dry Weather Analytical Monitoring and Field Screening $15,000 Follow -Up Investigations $8,000 Preparation of JURMP Annual Report $20,000 Training and Education $25,000 Watershed Urban Runoff Management Programs $15,000 Representing The City in Various Meeting $6,000 Other Storm Water Services $18,000 TOTAL $200,000 10 MIIIIMIL011111 - UM MI MI A t. MO Av ANIMPA6 - MAI SCHEDULE OF FEES January 1, 2005 This Schedule of Fees will be adjusted periodically. The new fee schedule will apply to all existing and new work. LABOR Classification Hourly Rate Clerk* Word Processor* Drafter* Technician* Senior Technician* Staff Scientist/Engineer Assitant Project Scientist/Engineer Project Scientist/Engineer Senior Scientist/Engineer Principal Scientist/Engineer $ 45 55 60 55 70 85 92 100 115 130 * Overtime (in excess of 8 hours per day) and weekend hours will be charged at 1.5 times the above rates for non-exempt personnel. Field and hourly services will be charged portal to portal from our office, with a two- hour minimum. Appearance as expert witnesses at court trials, mediation, arbitration hearings and depositions will be charged at $200/hour. Time spent preparing for such appearances will be charged at the above standard hourly rates. OTHER CHARGES Subcontracted services, such as subconsultants, outside testing, drilling, and surveyors, will be charged at cost plus 15%. Other project -specific costs, such as rentals, expendable or special supplies, special project insurance, permits and licenses, shipping, subsistence, tolls and parking, outside copying/printing, etc., will be charged at cost plus 15%. Client will be responsible for any applicable taxes in addition to the fees due for Services. The mileage charge for personal vehicles used on projects will be the current rate as established by the Internal Revenue Service. Company -owned vehicles will be charged at a rate of $0.50 per mile. /7 EXHIBIT C PROJECT SCHEDULE A Project Coordination Data Management Assist In City's Compliance 'Ins ecUon Pro ram SUSMP Implementation/ Document Preparation Dry Weather Analytical Monitoring and Field imminsmolr Screening Follow-U p a� Investigations Preparation of JURMP Annual Report Training and Education Watershed Urban Runoff Management Programs Representing The City in Various Meeting Other Storm Water Services NTRABUDGET ADJUSTMENT REQUEST DEPARTMENT DATE 8/1/05 ACTIVITY OR DIVISION ENGINEERING STATEMENT OF PROBLEM AND TIME URGENCY Please set up the contract services line item budget in the amount of $350,000 (125-421-222-299-0000). This funding will be used for services related to the City's National Pollutant Discharge Elimination System (NPDES) Program. This request was made during the initial budget development process, however, this line item was not SET UP CONTRACT SERVICES BUDGET - SEWER SERVICE FU D included in the final budget. AMOUNT NEEDED $ 350,000 SET DP BUDGET ACCT. # TITLE FROM:125-421-222-299-0000 TO: ADMINISTRATIVE REVIEW/COMMENTS CONTRACT SERVICES DEPARTMENT H<111 -->V THIS PORTION TO BE COMPLETED BY FINANCE DEPARTMENT UNENCUMBERED AS FINANCE BALANCE OF INITIAL ORIGINAL PREVIOUS APPROPRIATION TRANSFERS IN[OUT] IApproval C.M. Date CC: Disapproval Budget File - White Requesting Dept. Head - Yellow City Manager - Pink Originating Dept. - Goldenrod Approval Disapproval FIN. DIR. Date Date Posted FIN-003 4/90 City of National City, California COUNCIL AGENDA STATEMENT AEETING DATE August 16, 2005 AGENDA ITEM NO. 11 (-ITEM TITLE PREPARED BY EXPLANATION A Resolution of the City Council of National City approving an Agreement with Richard Becker Sculpture for $70,000 to Design, Fabricate and Install an Art Piece on the Property of National City's Main Fire Station #34 Leslie Deese DEPARTMENT Community Services Phone: (619) 336-4242 Please see attached Report Environmental Review X N/A Financial Statement --e- . FYbs re_., The amount for the Contract Agreement is $70,000. Funding is available through Accou N o . 250-409-500-598-1588 Account No. STAFF RECOMMENDATION Adopt the Resolution BOARD / COMMISSION RECOMMENDATION The National City Public Art Committee unanimously recommended Richard Becker to be the most qualified artist to perform the work. ATTACHMENTS ( Listed Below) Resolution No. 1. Staff Report 2. Resolution 3. Artist Biography { A-200 (9/80) RESOLUTION 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT IN THE AMOUNT OF $70,000 WITH RICHARD BECKER SCULPTURE TO DESIGN, FABRICATE AND INSTALL AN ART PIECE ON THE PROPERTY OF NATIONAL CITY'S MAIN FIRE STATION NO. 34 WHEREAS, the City desires to employ an artist for the creation of an original sculpture for National City's Main Fire Station No. 34, which includes the design, fabrication and installation of the art piece on the property; and WHEREAS, the City has determined that Richard Becker is a sculptor and is qualified by experience and ability to perform the services desired by the City, and Richard Becker is willing to perform such services. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute an agreement with Richard Becker Sculpture in the amount of $70,000 for the creation of an original sculpture for National City's Main Fire Station No. 34, which includes the design, fabrication and installation of the art piece on the property. Said Agreement in on file in the office of the City Clerk. PASSED and ADOPTED this 16th day of August, 2005. Nick Inzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney RE: A Resolution of the City Council of National City approving an agreement with Richard Becker Sculpture for $70,000 to Design, Fabricate and Install an Art Piece on the Property of National City's Main Fire Station #34 In approving the funds for the new Fire Station, the City Council allocated 1 % of the construction budget to public art to reaffirm its commitment to enriching the lives of our residents. In April, 2005 a Request for Qualifications was issued to design, fabricate and install an art piece on the property of National City's Main Fire Station #34. The requested services included research, coordination, schematics, drawings and other related services. On April 14, proposals were received from the following artists: • Richard Becker • T. J. Dickson & James Nelson • Dan Dykes • Carolyn Guerra • Frank Mando/John O'Connell/Simon Andrews • Mark Martinsen • Louise McDowell • John Sisko • Michael Stutz • Virdin Company • A. Wasil An Artist Selection Committee was established from members of the Public Art Committee, Engineering Department and Fire Department consisting of Memo Cavada, Skip Holloway, Randy James, Jeff Katz, Steve Kirkpatrick, Janice Martinelli, Susanna Peredo, and Jess VanDeventer. The Selection Committee evaluated all the proposals and completed its preliminary review of the statement of qualifications. The Committee selected four artists to be interviewed and further considered: • Richard Becker • T. J. Dixon & James Nelson • Mark Martinsen • John Sisko Based upon the results of the proposal/evaluations and the interviews, Richard Becker was found to be the most qualified artist to perform the work. The full Public Art Committee unanimously approved the Selection Committee's recommendation. The contract before the City Council for approval is for the completion of the Fire Station Public Art Project. A more detailed scope of work, cost estimates, and schedule is contained in the attached Agreement. . A biography of the artist is attached as Exhibit "A". #1 Awards & Recognition - National Sculpture Society's Edward Fenno -Hoffman Prize for uplifting works - National Finalist, National Figure Modeling Competition - Works selected for Art to Benefit Humanity Auction, Ritz -Carlton, Laguna - Member of the San Diego Museum of Art Artist Guild, The National Sculpture Society and the International Sculpture Center Education - Tutelage of Martine Vaugel, Rodin Prize recipient, Director New York Art Academy - Escola d'Art Barcelona - Los Angeles Art Academy - Stanford University Commissions - Frontier -Life Monument, City of Poway (public unveiling Summer 2006) - Mountain Lion grouping, City of Poway (public unveiling Summer 2006) - WWII Portrait commission (public unveiling May 2005) - Portrait of Captain Matt Bancroft, USMC, Bancroft Foundation - Private Portrait of I. Fonts, Barcelona, Spain Exhibits - "The Sea," Park Avenue Atrium, New York City (thru Apr 1) - San Diego Museum of Art, Festival of Fine Arts (2005) - Sculpture in the Park, Loveland, Co (2004) - Exclusive Collections Gallery, San Diego, CA (2002) - Fingerhut Gallery, La Jolla, CA (2002) Collections - Works in private collections in the US, UK and Europe. nchard pecker sculpture "What Becker expresses cannot be taught" -- San Diego Union Tribune "Exquisite" -- San Diego No. County Times "Bronze Brilliance" -- Decor and Style Magazine 2003 Edward Fenno -Hoffman Prize Recipient Member of the National Sculpture Society and the Artist Guild of the San Diego Museum of Art www.richardbecker.co Born in 1958 in Southeast Los Angeles, Richard Becker demonstrated an early proficiency for the arts. An "award -winning" sculptor at age 8, he continued to draw and paint as a youth, but with his aptitude for the sciences and his drive to move past his circumstances, he built a career in technology including several patents and an advanced degree from Stanford. Aside from an occasional drawing or sketch, he dropped art completely -- he took only one art class after age 12. Twenty-four years later, Richard began a 3 year European work assignment that brought art back into his life. "While living in Barcelona and traveling in Europe I had an artistic awakening. Art was everywhere — the plazas, the museums, the architecture... I was especially drawn to sculpture. One day I bought some clay on a whim. I sat on the veranda and formed a crude little head. It was an electric experience — I Loved it. From that moment on creating sculpture has been my consuming passion." Making up for "lost" time, Richard's artistic training has been intense. While living in Spain, he studied at Barcelona's Escola d'Art. Returning to the U.S. in 1997 with a drive to capture expressive human realism, he studied briefly at the Art Academy of Los Angeles, worked under New York Academy of Art Sculpture Director and Rodin Grand Prize winner Martine Vaugel, with sculptor Chris Pardell and with anatomist Vlad Medenica. Richard's home and studio are in Southern California. His works can be found in European and American collections and have been humbly exhibited alongside world greats including Hart, Picasso and Rembrandt. In 2003 Richard was invited into the Artist Guild of the San Diego Museum of Art and Awarded the National Sculpture Society's Edward Fenno Hoffman Prize for uplifting sculptural works. Richard is currently creating two monumental sculptures for the City of Poway's new Fine Arts and Education Center. richard Becker sculpture www.richardbecker.com the sclilpttrre of ,a r d b e c k e i`' san diego museum of art `a„�ujorr14y, © richard booker sculpture National City Fire Station Interview 05.05.05 richard Becker sculpture www. rich and bec k e r. com • Provide the information requested including — previous experience, demonstrated performance — approach — draft timeline — examples • Have a 2-way conversation about your vision and some preliminary concepts • Answer other questions to help determine if there is a good match © richard becker sculpture WWW. ri c h a rd b e c k e r. co m 6-0 Typical Approach & Process I) Concept Planning a) Discussion b) Research, gatherinfo, photos and guidance from client, stakeholders c) Create / review preliminary sketches d) Review / Approval process per client e) Client / artist agreement II) Scale-model(s) Sculpting a) Hire models, obtain photos & artifacts if required b) Create scale scuipture(s). c) Meet with client for any changes and approval (any changes should be done at this stage) III) Full-size Sculpting a) Rough enlargement of scale model 1) Digitally or manually b) Modeling and finishing in clay c) Casting qty, installation reqmts specified d) Client approval at studio © richard Becker sculpture IV. Foundry Process a) create molds b) pour and chase wax c) ceramic shell around wax d) bum -out wax and fire shell e) Pour metal f) chip away shell, sandblast g) Weld sections h) chase metal for texture and finish i) Apply colorants, patinas V. Delivery VI. Installation (if required) a) Site preparation, including concrete and lighting must be complete Payments in installations • 1)3 down to start • 1B upon approval of scale modelle), before foundry • 1/3 upon delivery www. richardbecker. cram Draft Schedule MONTH TASK 1 2 3 4 5 6 concept approval sculpt final clay — begin mid -sculpt progress reiiew (photos, or at studio) sculpt clay — finish final clay approval (photos, or at studio) create molds foundry: wax, casting, patina, mounting hardware final casting approval (photos or at foundry) site preparation (city) Ship delivered 0 4 -,,= — 0 4 © richard Becker sculpture vA',w, richardbecker. cum example for discussion Poway Art Center Initial Concept Discussed Feel Photo from Determined Councilmember, scope and "content" w/ panel (City Mgr, Council Members, Redevelopment Mgr, etc). Research w/ SD Historical Society Worked Created with concepts. Architect, Reviewed, Mayor, adjusted Team on realtime 3-d integratio sketches w/ with Bldg team. Selected concept. example for discussion WWII Veteran / POW Bust Nice Portrait bust plus -Medal integration -Pulled up schedule / PR for 60th anniversary of Liberation / VE Day -Time Capsule (Surprise Unveiling San Diego Veterans Administration Building 12 May 05) C richard Becker sculpture vww.rchardbesker_corn Expected Outcome • Hopefully, you will come away with: • a good understanding of how I can help you • very high confidence that I will do an outstanding job managing the project — on -time and within budget • excitement that together we can create a timeless, enduring work of art that will honor, inspire, engage and grace National City for centuries. © richard becker sculpture wwrvv.richardbecker. corn Relevant. Background & Experience 8 years experience creating bronzes, managing my works thru foundries - Experience in concrete, some masonry (enough to hire and manage contractors, work with inspectors) Degree in Mechanical Engineering (helps w/ design) Degree in Engineering Management 11 years successful project/program management experience Consistently rated in top 5-10% of managers - High-tech, complex international - Constant cross-cultural collaboration - Manage multi -million $ budgets, tight, very complex schedules e the Bottomduct on and oversee thLine: I can e stallation of a wondn consensus, erful piece of art! © richard becker sculpture wwAA.richardbecker.com Concept SKETCHES ARE: - Rough - Ugly, even horrifying - To help visualize in 3-d - To provoke discussion ARE NOT - Finished - Pretty richard becker sculpture Tree of Life and Service Symbolic of the connection between the firefighters, the ones they, serve, their community, their world @© richard becker sculpture •the flatlined young father that lived to raise his children •the drowned daredevil toddler who was revived and lived a long happy life •equipment from over the years •2 firefighters`; from today and yesteryear YNN,richardbecker. corn Saving Lives Protecting. Property Serving the Community © richard becker sculptu-. BUT FIRST... richard becker sculpture www.richardbecker cam o&) a tribute to individual efforts and sacrifices •depict the, absolute physical exhaustion •coupled with an expression of satisfaction, thankfulness •front: human element •back: history, timeline of important events, technological innovations © r'chard becker sculpture www.richardbeckercum • I will do my very best to deliver, on schedule and budget, a world -class work of art: - THAT PAYS TRIBUTE TO THE FIREFIGHTERS THAT SERVE THIS COMMUNITY (PAST, PRESENT AND FUTURE) - THAT HONORS/INSPIRES THE PUBLIC SERVICE - THAT THE FIREFIGHTERS AND COMMUNITY WILL ENJOY AND BE PROUD TO HAVE GRACE THEIR NEIGBORHOOD - THAT WILL LAST CENTURIES - IN CONTENT AND ARTISTIC MERIT A CULTURAL ARTIFACT FOR GENERATIONS TO COME O richard becker sculpture VAV .richardbecker. corn thank you richard becker sculpture www.rtchardbecker.com contact information +1.858.513.2735 email: rb a(�richardbecker.com website: www.richardbecker.com v,ww. richardbecker.corn © richard backer sculpture sample works National City Fire Station RFC) 24 Mar 05 richard becker sculpture www. richardbecker. corn ".271...i0.500,41* © richard becker sculpture queen of the sea vvvvvv.richardbeckercom peaceful moments HH rr(C•!i the surfer richard becker sculpture www.richardbecker.com peaceful moments 11 © richard Becker sculpture www.richardbecker.com richard becker .richardbecker.corn richard becker sculpture www. richardbecker. corn 3 a.m. femme study (sisters) richarcl becker sculpture www.richardbecker.com richard Becker sculpture soul mates www. richardbecker. corn seeking serenity richard Pecker sculpture www. richardbecker. corn richard becker sculpture portrait of capt matt bancroft usmc www. richardbecker. cam the couple 11(:.;11urcl t)eclter sculpture richard Becker sculpture maquettes in progress poway art center www. richardbecker. corn sculutures MISSIOne 4,On:4,S* Diego 3.1useun4 of. -13i,,Jessic.a,LOg Poway retident,Ite _ . the Natia4i71 crea-We te vei excited Scutuxe Sotie0,s EdwardFenno o ouniitwo4an 'f-i44 61' rDieyo Uniyn7ribure lithe Ff.iliLANO Ai irsaag, .Sanua y I6; Z003 �omesii Tho... iswurlr- �3p ende d serene w3'. tbat`le:aesmbesas rag" elaiiii4 etwoaIlowslmxttogiaa. fbc rs,Sghtaadshap� lesard Hesazdbemydevate�al(uspn �rtev-as�ver�vliete Tuerewasarrmtge w ctIlsiisaseifa nddleage�piodrgy 0-4.1liebveumanatheme7utechmz I ofhigV rkk iaatwnn be%YSvd E rha verreason Ifeeir1avetodoit he ofhisworkatHewie learnedIiovr�wEverfplartrar b� esgec>allg•I avesucha ood dbratlreallyer $mesfr 6anarrtismti famnlg.I�smo#fier 'ciflFtur� hesa e erandaandforbbuglif hesazd 14iayhewhenfxet e am(silisbrotherisaitarhstior�isaep SO ` °nihevesand'a'andformed'a' FormoremfomaaizanaioutBenkfzsortvisit: andeaiptur ead. been thatmomenton, S;eab Seck�rlvmse2Fd�ewandpamfedasayouth,but_,nQscidiwre'n*BeenmyconsuminSpassion_ his'VPebsrteatwvecvac7tard6etkerconi OrcaIl':;: �tookanlycneartclatsafteYagz12Ha4mteY Duiiiigthe sityears;hehashadalittIe C )5553 sicanmoretomotnrCvdesthanmuseuns trainin m�chofwirichwasvisitin•the great nd %Ca f lance wrrie 7.. 7 Vista A adi 'uuda _.." an said Heand%vsv re 3enme als Y IysEyearmap"�e�raSfi R¢it�e�n;i �S Potion udtmnggseed ifl weAtat$te1ikenecs "If uas awaytb honor one'of ourlo sahpdzedfarustokeepoin f eedom'.. cm1 ied iiouc7ur His_Farin"Cy - -: genes- usenmsaf£Msope Patky rrrraC.S3 ree lshegrew$ebegastoleantowarlsaence ` retouredEuiogewtliavengeance,"he Town Focus on Poway1spubhshede dt thnolggvHebecameauengmeerand - , . - - .o to• Do, ouhaveastoryideafor.Powa ?For,spenal zarnedlu riastet'sdegreemengineeringfie'm- cents im.ofEgskitandartintheahesofWest everits;pleasealhead c leastfsnarow KS-irraat tanford Univeisi1V iu 3988:Assikri64m:1996 to ernAsa$e tudiedatBarcelona's Escniad'�rt vance,We�work ahead!CanfarESlrarrnr5hapiro at. a zrtofins'ati atEle�vlettPacicard, h 4t um: '";i$arceloa asp I hehad an awakening. and uponreturning to tie i.'ivteetSTafee in 1907, (t60) 52-6795-orsharons apiro union nac - RICHARD BECKER IMAGES LIST (nat city firehouse slides richard becker.ppt) 1. The Queen of the Sea a. proposal for the Port of SD and the City of Laguna Beach b. Bronze c. Maquette: 9 x 6 x 6 in. Full size proposed: 6 feet tall 2. Peaceful Moments I / Enjoy the Silence a. Bronze b. 27x6x7in 3. The Surfer a Bronze b. 21x10x19in 4. Peaceful Moments II / The Muse a. Bronze b. 26x8x7in 5. The Athlete a. Bronze b. 12x7x4in 6. Relax a. Bronze b. 14x6x6in 7. Femme Study (the sisters) a. Bronze b. 12x5x5in 8. Soul Mates a. Bronze b. 36 diameter by 6 in deep 9. Seeking Serenity a. Bronze b. 36x16x10 10. Portrait of Capt Matt Bancroft USMC a. Bronze b. Life-size: 22 x 12 x 12 11. The Couple a. Bronze b. 12x13x5in 12. Frontier -Life Monument (in progress) a Bronze (clay shown) b. Maquette: 27 x 16 x 16 in c. Monument: 84 x 60 x 60 in (plus 24 inch tall granite base) 13. Mountain Lions (in progress) a. Bronze (clay shown) b. Maquette: 12 x 16 x 11 C. Monument: 48 x 54 x 44 15836 Bent Tree Road, Poway. CA 92064 USA Tel 1 FAX 858.513.2735 Page 4 of 4 (as ) City of National City, California COUNCIL AGENDA STATEMENT .dEETING DATE August 16. 2005 AGENDA ITEM NO. 12 t—ITEM TITLE Resolution of the City Council of the City of National City awarding a contract to MJC Construction in the amount of $1,008,900, for the construction of the first phase of the Paradise Creek Educational Park Project, Specification 04-5 PREPARED BY Roberto Saucedo A DEPARTMENT Public Works Leslie Deese \I �L� Community Services EXPLANATION See attached explanation EXT. 4580 4290 1 Environmental Review X N/A MIS Approval Financial Statement The award is for $1,008,900. Approved By: Gi/ The funds sources for the project are as follows: account 348-409-500-598-4113 Finance Ui a ($552,824); 301-409-500-598-4113 ($25,000); and $500,000 from the new Coastal Conservancy Board grant. Account No. STAFF RECOMMENDATION Adopt the Resolution BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. 1. Resolution 2. Bid Opening Information Sheet 3. Locator Map 4. Contractor's Background & History Summary A-200 (Rev, 7/03) Item Title: Resolution of the City Council of National City awarding a contract to MJC Construction in the amount of $1,008,900, for the construction of the first phase of the Paradise Creek Educational Park Project, Specification 04-5 Explanation: The construction of the Paradise Creek Educational Park has been a long awaited dream of the Paradise Creek Educational Park Inc. group lead by Mr. Ted Godshalk, the Coastal Conservancy Board and the City. In July 1999, the City Council approved an agreement with Schmidt Design Group for the preparation of an enhancement plan for this project, located along the Paradise Creek from 22nd Street to Hoover Avenue (see locator map). Funding for the contract was obtained from a $50,000 grant from the Coastal Conservancy Board, specially earmarked for this purpose. The plan was completed in June 2001, and in. December 2002, the Conservancy increased its grant award to the City by $660,000, for a total award of $710,000 for the preparation of the design and partial construction of the. project. The Schmidt Design group completed construction plans, specifications and cost estimates in April 2005. Their final estimate of the construction cost of the project, was $1,750,000. In early 2005, Community Services staff applied for a $500,000 grant increase to the Coastal Conservancy Board and for other grants for which this project qualified with the goal of obtaining the needed construction monies. The project was advertised for bids in May 2005. Two bids were received and subsequently rejected, as they contained errors that made the bid amounts invalid. However, encouraged by the prospect of receiving the Conservancy grant increase, staff re -bid the project in late June 2005. Since we were unsure of the ultimate funding available for the project, staff structured the re -bid such that a contract could be awarded commensurate with the results of our grant applications. On June 16, 2005 Community Services staff was notified that the Coastal Conservancy Board had approved the $500,000 grant increase, bringing the Conservancy's total grant for this project to $1,210,000. It should be noted that $157,176 of the Conservancy grant has been utilized to prepare the plans and specifications, leaving a net of $1,052,824 for construction purposes. On July 28, 2005, four re -bid proposals were opened with the lowest re -bid submitted by MJC Construction in the amount of $1,588,700.00. Consequently, staff met with Mr. Godshalk to prioritize the items of work commensurate with the funding available for construction. Based on this discussion and the need to start the work prior to the end of summer, staff is recommending that a contract be awarded to MJC Construction that includes the base bid (18 items of work) and three alternatives (A3 through A5, inclusively) deemed important to create a functional project (see table below), should no additional grant funding be available to immediately complete the project. The project as re -bid did not include the removal of lead contaminated soils to be stockpiled by the MJC Construction as part of their work. The cost to remove the stockpile is estimated to range between $100,000 and $150,000, depending on the ultimate volume to be disposed. Staff will return to Council at a future date for authorization to accomplish this removal work, which could be done as a change order to MJC Construction's proposed contract or bid out. Therefore, and due to the project's funding situation, staff is recommending the City Council to award a contract to MJC Construction in the amount of $1,008,900.00, with the understanding that the award is contingent on the receipt of the $500,000 grant monies form the Coastal Conservancy prior to commencement of work. The contract recommended for award includes the base bid work plus alternates A3 through A5, only. Currently, the funding situation can be summarized as follows: Revenues Coastal Conservancy Grants — 348-409-500-598-4113 Community Development Block Grant — 301-409-500-598-4113 Total $1,210,000 * 25,000 $1,235,000 * Includes the $500,000 recently awarded by the Coastal Conservancy Board Expenditures to date Coastal Conservancy Grants — 348-409-500-598-4113 ** For planning / design purposes Available for Construction Bid as submitted by JMC Construction Item Base Bid Additive Alternative Al Additive Alternative A2 Additive Alternative A3 Additive Alternative A4 Additive Alternative A5 Additive Alternative A6 Additive Alternative A7 Additive Alternative A8 Additive Alternative A9 Additive Alternative A10 Work Description Grading, Irrigation & Landscaping Amphitheater seating, permits, etc Decomposed Granite (DG) pathways Parking lot Learning lab Central boardwalk Boardwalk connections Deck node B & connection Deck node D & connection Boardwalk electrical system DG pathways electrical system Install lighting units TOTAL ***Proposed contract selection items (total $1,008,900.00) $ 157,176 ** $1,077,824 Amount $ 618,900.00 140,000.00 85,000.00 75,000.00 175,000.00 140,000.00 59,000.00 101,200.00 30,000.00 42,000.00 122,600.00 $1,588,700.00 *** Pending Council authorization to proceed with the contract, staff anticipates a construction start date of September 6, 2005 and completion in early February 2006. RESOLUTION 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AWARDING A CONTRACT TO MJC CONSTRUCTION, INC. IN THE AMOUNT OF $1,008,900, FOR THE CONSTRUCTION OF THE FIRST PHASE OF THE PARADISE CREEK EDUCATIONAL PARK PROJECT (Engineering Specification No. 04-5) WHEREAS, the Engineering Department did, in open session on July 28, 2005, publicly open, examine and declare all sealed bids for the construction of the first phase of the Paradise Creek Educational Park Project. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby awards the contract for the first phase of the Paradise Creek Educational Park Project to the lowest responsive, responsible bidder, to wit: MJC CONSTRUCTION, INC. BE IT FURTHER RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute a contract between MJC Construction, Inc. and the City of National City for the first phase of the Paradise Creek Educational Park Project. Said contract is on file in the office of the City Clerk. PASSED and ADOPTED this 16th day of August, 2005. Nick Inzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney ATTACHMENT 2 - BID OPENING INFORMATION SHEET Paradise Creek Educational Park - Re Bid jib, 28, 2005 at 3:00 PM Heftier Company MJC Const St Thomas Enterp Wier Const Corp Bld Items Amount Progressive Sum Amount Progressive Sum Amount Progressive Sum Amount Progressive Sum Base Bid $874,822.61 $874,822.61 $618,900.00 018,900.00 $850,000,00 $850,000.00 $1,182,456.00 $1,182,456.00 Mobilization $40,000.00 $100,000.00 $75,000,00 $219,240.00 Traffic Control $6,746.19 $5,000,00 $5,000,00 $9,000.00 General Permits $25,000.00 $19,000.00 $25,000.00 $18,000.00 Temp Fencing $6,000.00 $6,000.00 $7,000.00 $7,200.00 Demo, Clear & Haul $257,914.00 $105,000.00 $120,000.00 $120,000.00 Earthwork $157,808.00 $90,000.00 $180,000.00 $84,000.00 In -situ testing $14,000.00 $24,000.00 $5,000.00 $60,000.00 Electrical $15,640.00 $18,000.00 $25,000,00 $16,416.00 AC paving $22,220.00 $8,000.00 $13,000.00 $6,000.00 Concrete network $51,789.42 $40,100.00 $120,000.00 $100,800.00 Stabilized DG $31,280.00 $13,000.00 $115,000.06 $72,000.00 Amphitheater $58,280.00 $60,000.00 $52,000.00 $78,000.00 Site Fumishings $6,800.00 $5,800.00 $14,000.00 $2,400.00 Curb Ramps $2,500.00 $2,500,00 $12,000,00' $4,200.00 Fencing $28,000.00 $8,000.00 $14,000.00 $12,000.00 Irrigation $74,586.00 $80,000,00 $45,000.00 $192,000.00 Landscaping $68,259.00 $49,000.00 $38,000.00 $168,000.00 Landscaping Maint $8,000.00 $7,500.00 $5,000.00 $7,200.00 A3 $72,500.00 $947,322.61 $75,000.00 $593,900.00 $95,000.00 $945,000.00 $103,000.00 $1,285,456.00 A4 $172,325.00 $1,119,647.61 $175,000,00 $868,900.00 $250,000.00 $1,195,000.00 $307,490.00 $1,592,946.00 A5 $149,100.00 $1,268,747.61 $140,000.00 $1,008,900.00 $210,000.00 $1,405,000.00 $254,050,00 $1,846,996.00 A6 $62,280.00 $1,331,027.61 $59,000.00 $1,067,900.00 $140,000.00 $1,545,000.00 $113,490.00 $1,950,486.00 A7 $93,680.00 $1,424,707.61 $101,200.00 $1,169,100.00 $155,000.00 $1,700,000.00 $178,637.00 $2,137,123.00 Total $1,424,707.61 $1,169,100.00 $1,700,000.00 $2,137,123.00 Note: Progressive Sum Is with respect to priority of scope of project. ENTRANCE SCHOOL YARD LUNAR CRESCENT OVERHEAD STRUCTURE`, LOW PLATTING FULL MOON THEME, CONCRETE CONCRETE INSTRUCTIONAL/EVENTS `-:'-XIMHGII AREA, SEATING FOR 120 STUDENTS 20' DIAMETER (314 SF) MIN. NODE WITH RAILING 10' WEIIAND BUFFER/ FILTRATION AREA 6' WIDE RAISED BOARDWALK WITH RAILING BENCH 'CAUF. HORNED SNAIL' PLAY STRUCTURE AREA 10 FT. WIDE STABILIZED D.G. PATH PICNIC TABLES ON CONCRETE PADS TREES AND SHRUBS FOR SCREENING AND SHADE AREA FOR POIUACCINGPORTS EXISTING PERMANENT • BOLLARDS PROPOSED PROPERTY LINE STABILIZED D.G. CUTOUT WITH BENCH (TYPICAL.) PARKING 6 SPCS. PERMEABLE PANG • 7SPCS. ELECTRONIC GATE ELEMENTARY : Si,;:+i ��:.:.: WEST 18TH..ST. BENCH IN PARKWAY W/TRASH CAN INJEI«i FINE AND DIRECTONAL, SIGNAGE. EXISTING LAB EXISTING NURSERY-.; HOOFER AVE. EXISTING .TNIC{Y. SIGNAGE D(ISTING PUBLIC ENTRANCE 6' WIDE STABILIZED O.G. PATH 6' WIDE RAISED BOARDWALK WIN RAILING MIN. 6' WIDE RAISED PATH WITH RAILING (1YPICAL) INTERSECTION AND OVERLOOK 20' DIAMETER (314 SF) MN. NODE WITH RAILING PROPOSED GRADES 6' WIDE STABILIZED D.G. PATH ON GRADE MOUND WITH NATIVE UPLAND VEGETATION 1ST AND LAST QUARTER MOON AMPHITHEATER MIN. 6' WIDE STABIUZED D.G. PATH DN GRADE OVERLOOK 12 WIDE STABILIZED O.C. -HAMMER HEAD' VEHICULAR TURN AROUND PROPOSED FENCE AREA OF ENCROACHMENT X. 1,866 S.F.) EXISTING FENCE CONCRETE LUNAR THEME CUT OUT WITH OVERHEAD SHADE STRUCTURE BENCH AND SIGNAGE STABIUZED D.G. RAMP-8.3% WITH RAIUNG 6' RETAINING WALL NEW MOON THEME OVERLOOK WITH SIGNAGE PAID SIGNAGE EXISTING CONCRETE WITH ENHANCED ' DECORATIVE PAVING ATTACHMENT 3 LOCATOR MAP srYr DESIG..7) NORTH SCALE: 1'=100'-0Y PARADISE CREEK EDUCATIONAL PARK CONCEPTUAL DEVELOPMENT PLAN FIGURE NO. I Byron S. Wade 619-588 -5475 p.2 ATTACMENT 4 MJC CONSTRUCTION, INC. 301 5 SILVIA STRECT, BONITA, CA 91 902 TEL (61 9) 472-5619 FAx (619) 472-5367 August 4, 2005 BACKGROUND & HISTORY MJC Construction, Inc. is a local South Bay area family owned and operated general contracting company with a long history of doing superior public works projects in San Diego County. We have a very broad range of experience constructing almost every type of public improvement found locally. Some of our completed projects include new public surface and underground improvements for block grant projects, median installations with specialty stamped concrete and landscaping, private and public improvement grading, new and reconstructed storm drain and sewer installations, large private landscape projects with architectural retaining walls and concrete, and public parks with all the amenities. Our recently completed war memorial project is the highly acclaimed, Piazza Basilone, in Little Italy, San Diego is an example of the broad range of work produced by our staff of experienced and talented tradesmen. Work included specialty concrete flatwork and walls, stonework, fountain, landscaping, lighting, memorial wall and pedestal. MJC Construction continues as a very financially stable company that carefully selects projects to bid and construct that fit our talents and size. Throughout our history MJC Construction has been a family affair with long term, loyal tradesmen that guarantees consistency in project management and product quality. Public agencies often tell us that they appreciate our hands on, team approach that fosters an atmosphere of cooperation and common goals. Maintaining our reputation as a local company that always delivers is very important to us. City of National City, California COUNCIL AGENDA STATEMENT .vIEETING DATE August 16, 2005 13 AGENDA ITEM NO. ITEM TITLE Resolution authorizing the Mayor to sign Freeway Maintenance Agreement 11-8282 between the City and the State of California by and through its Department of Transportation for the maintenance of portions of the bike path over and adjacent to the Sweetwater River channel on the West side of Route 5 and within the City Of National City PREPARED BY Roberto Saucedo DEPARTMENT Public Works EXT. 4580 EXPLANATION On October 30, 1978, the City Of National City and the State of California entered into a Cooperative Agreement for the development and maintenance of a bike path along a portion of State Highway Route 5 and within the jurisdictional limits of the City Of National City. This bike path, known as the Bay Shore Bikeway, when completed will traverse the San Diego Bay shoreline. It will be one of the most scenic bike paths in the County. The Cooperative Agreement, stipulates that as portions of the bike path are completed by the State, the maintenance of the improvements become the responsibility of the Agency on whose jurisdiction it lies. The portion of the bike path covered by the proposed agreement is along the west side of Route 5 between the north City limits of Chula Vista and Route 54 in the City Of National City and was just recently completed by the State. A locator map is herein attached as Exhibit "A". Upon approval, the City Of National City will assume responsibility for maintenance, operation and associated costs of this segment of the bike path. Environmental Review X NIA MIS Approval Financial Statement Approved By: The maintenance & operation costs are estimated to be minimal. >STAFF RECOMMENDATION 1. Adopt the Resolution. 2. Direct the City Clerk to mail three executed duplicate copies of the Agreement to State of California, Department of Transportation for their approval. Finance Director Account No. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) 1. Resolution 2. Freeway Maintenance Agreement 11-8282. 3. Exhibit "A" - Locator Map Resolution No. A-200 (Rev. 7/03) RESOLUTION 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE FREEWAY MAINTENANCE AGREEMENT 11-8282 BETWEEN THE CITY AND THE STATE OF CALIFORNIA, BY AND THROUGH ITS DEPARTMENT OF TRANSPORTATION FOR THE MAINTENANCE OF PORTIONS OF THE BIKE PATH OVER AND ADJACENT TO THE SWEETWATER RIVER CHANNEL ON THE WEST SIDE OF INTERSTATE 5 AND WITHIN THE CITY OF NATIONAL CITY WHEREAS, on October 30, 1978, a Cooperative Agreement was executed between the City and the State of California wherein the City agreed and consented to certain adjustments of the local street and road system required for the development of a bike path along a portion of Interstate 5 within the jurisdictional limits of National City; and WHEREAS, said bike path has now been completed or is nearing completion, and the parties hereto mutually desire to clarify the division of maintenance responsibly as to the local City bike path, or portions thereof, and landscaped areas lying within or outside the freeway limits; and WHEREAS, under Section D.3 of the above Cooperative Agreement, the City has resumed or will resume control and maintenance over the relocated or reconstructed bike path except those portions thereof adopted as a part of the freeway proper. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute Freeway Maintenance Agreement 11- 8282 between the City and the State of California, by and through its Department of Transportation for the maintenance of portions of the bike path over and adjacent to the Sweetwater River Channel on the west side of Interstate 5 and within the City of National City. Said Agreement in on file in the office of the City Clerk. PASSED and ADOPTED this 16th day of August, 2005. Nick Inzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney 11-SD-5 PM 9.4 FMA 11-8282 FREEWAY MAINTENANCE AGREEMENT THIS AGREEMENT is made and entered info in duplicate, effective this day of , 20 by and between the State of California, acting by and through its Department of Transportation, hereinafter referred to as "STATE," and the City of National City, hereinafter referred to as "CITY". WITNESSETH: WHEREAS, on October 30, 1978, a Cooperative Agreement was executed between CITY and STATE wherein CITY agreed and consented to certain adjustments of the local street and road system required for the development of a bike path along a portion of State Highway Route 5 within the jurisdictional limits of CITY; and WHEREAS, said bike path has now been completed or is nearing completion, and the parties hereto mutually desire to clarify the division of maintenance responsibility as to local CITY bike path, or portions thereof and landscaped areas lying within or outside the freeway limits; and WHEREAS, under Section D.3. of the above Cooperative Agreement, CITY has resumed or will resume control and maintenance over the relocated or reconstructed (CITY bike path) except those portions thereof adopted as a part of the freeway proper. NOW THEREFORE, IT IS AGREED: 1. When a planned future improvement has been constructed and/or a minor revision has been effected within the limits of the freeway herein described, which affects the parties division of maintenance responsibility as described herein, STATE will provide a new dated and revised Exhibit "A," which will be made a part hereof by an amendment to this Agreement when executed by both parties, which will thereafter supersede the attached original Exhibit A and which will then become part of this Agreement. 2. VEHICULAR AND PEDESTRIAN STRUCTURE STATE will maintain, at STATE expense, the entire structure of any vehicular and pedestrian structure below the deck surface except as hereinafter provided. CITY will maintain, at CITY expense, the deck and/or surfacing (and shall perform such work as may be necessary to ensure an •impervious and/or otherwise suitable surface) and all portions of the structure above the bridge deck, including, but without limitation, lighting installations, as well as all traffic service facilities (signals, signs, pavement markings, rails, etc.) that may be required for the benefit or control of traffic using that structure. 3. BICYCLE PATHS CITY will sweep and maintain, at CITY expense, a safe and clean facility for bicycle travel along the entire length of the described path depicted on attached Exhibit "A", made a part of this Agreement. Said maintenance will include, but is not limited to, the removal of graffitti, debris and vegetation that may render the path unsafe or unsightly as well as keeping all portions of the path safe for passage and all signs and lighting if any, in good repair. 4. LEGAL RELATIONS AND RESPONSIBILITIES: A. Nothing in the provisions of this Agreement is intended to create duties or obligations to or rights in third parties not parties to this contract or affect the legal liability of either party to the contract by imposing any standard of care with respect to the maintenance of STATE highways or bike paths different from the standard of care imposed by law. B. It is understood and agreed that neither STATE nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by CITY under or in connection with any work authority or jurisdiction delegated to CITY under this Agreement. It is understood and agreed that, pursuant to Government Code section 895.4, CITY shall defend, indemnify and save harmless STATE and all of its officers and employees from all claims, suits or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property resulting from anything done or omitted to be done by CITY under or in connection with any work, authority or jurisdiction delegated to CITY under this Agreement. C. It is understood and agreed that neither CITY nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by STATE under or in connection with any work, authority or jurisdiction delegated to STATE under this Agreement. It is understood and agreed that, pursuant to Government Code section 895.4, STATE shall defend, indemnify and save harmless CITY and all of its officers and employees from all claims, suits or actions of every name, kind and description brought for or on account of injuries to or death of any person or damage to property resulting from anything done or omitted to be done by STATE under or in connection with any work, authority or jurisdiction delegated to STATE under this Agreement. 2 5. EFFECTIVE DATE This Agreement shall be effective upon the date appearing on its face, it being understood and agreed, however, that the execution of this Freeway Maintenance Agreement shall not affect any pre-existing obligations of CITY to maintain designated areas pursuant to prior written notice from STATE that work in such areas, which CITY has agreed to maintain pursuant to the terms of the Freeway Agreement, has been completed. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. CITY of By City Executive City Clerk ** Approved as to form and STATE OF CALIFORNIA procedure: DEPARTMENT OF TRANSPORTATION Attorney WILL KEMPTON Department of Transportation Director of Transportation By City Attorney District Director By 3 PARADISE MARSH BR SWEETWATER RIVER BIKE BR NN PATH / O 57-C-ZKB BIKE PATH BR BR No. 57-I032Z CHULA VISTA CITY LIMIT ,/ NATIONAL CITYe CITY LIMIT "— SWEETWATER RIVER BRIDGE Rte 5/54 SEPARATION & OH 1 in AREA WITHIN FREEWAY LIMITS TO BE MAINTAINED BY: CITY NO SCALE DIST. CO. RTE. POST MILE II SD 5 9.4 FMA I1-8282 06/22/04 NATIONAL CITY Rte 5/54 SEPARATION & OH FREEWAY MAINTENANCE AGREEMENT EXHIBIT "A" SHEET 1 OF 1 ...110. 604797a02exhibitd.dgn 04/04/2005 02:47:26 PM City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE August 16, 2005 AGENDA ITEM NO. 14 ITEM TITLE Resolution requesting that the Public Employees' Retirement System (CaIPERS) waive the 960 hour rule and allow a temporary employment extension for Interim Finance Director Bill Yeomans Ryan Hyland PREPARED BY Deputy Director - HR Phone: 336-4300 DEPARTMENT Human Resources EXPLANATION On March 16, 2005, the City hired Bill Yeomans, a retired Finance Director, to assist the Finance Department with technical issues. Although initially hired as a part time employee, Mr. Yeomans agreed to increase his hours and fill a critical leadership void resulting from personnel actions that have taken place since his hiring. As a result, he is quickly approaching the 960 hour calendar year work limitation imposed on employees who have retired from CaIPERS. As of 8/1/05 Mr. Yeomans has worked 738 hours for the City. PERS law Article 8, Section 21221 (h) allows for the 960 hour maximum to be exceeded upon approval of the City Council and the PERS board. Plans for the recruitment of a Finance Director are underway, however, the process will be at least several months long and there is a strong likelihood that Mr. Yeomans will reach the 960 limit before a permanent Finance Director is hired. Staff recommends the attached resolution be approved so Mr. Yeomans can continue in his critical role as Interim Finance Director while the Finance Department transitions to a permanent Director. Although the duration may be shorter, the resolution requests permission for Mr. Yeomans to work to the end of the calendar year. If approved by Council, the resolution will be sent to the PERS board for their consideration and staff will notify Council of PERS decision on the matter. f Environmental Review ✓ N/A Financial Statement Salary savings from the Finance Director vacancy are available to fund this proposed employment extension. Account No. 001-404-046-101 STAFF RECOMMENDATION Approve the attached resolution. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. A) Resolution B) California Government Code - Chapter 12, Article 8, Section 21221(h) A-200 (9/80) RESOLUTION 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REQUESTING THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM TO ALLOW THE EMPLOYMENT OF BILL YEOMANS BEYOND THE 960-HOUR LIMIT OF EMPLOYMENT WHEREAS, the City has an immediate need for an experienced part-time Finance Director to fill a temporary and sudden vacancy in the Finance Department; and WHEREAS, the vacant position requires specialized skills; and WHEREAS, the City of National City is currently employing Bill Yeomans, who possesses the required specialized skills, as a part-time, limited term Interim Finance Director; and WHEREAS, Bill Yeomans is currently retired under the Public Employees' Retirement System ("PERS") and may not work more than 960 hours in a calendar year, pursuant to Government Code Section 21151(h), except upon approval of PERS pursuant to that section. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: 1. That the appointment of Bill Yeomans to fill the temporary vacancy of the Finance Director is hereby confirmed and that the appointment is necessary because the position requires unique skills possessed by him. 2. That the above appointment is hereby declared to be of a limited duration to continue only until the full-time position of Finance Director is filled. 3. That the City Council does hereby request an extension by PERS for the above appointment to continue beyond 960 hours pursuant to Government Code 21151(h). 4. That the City Manager is authorized and directed to forward a copy of this resolution to PERS and to take such other actions as are required to effectuate this extension. PASSED and ADOPTED this 16th day of August, 2005. Nick Inzunza, Mayor ATTEST: APPROVED AS TO FORM: Michael Dalla, City Clerk George H. Eiser, III City Attorney California Govt. Code Chapter 12 § 21221 Conditions and Limitations on Service After Retirement Article 8 A retired person may serve without reinstatement from retirement or loss or interruption of benefits provided by this system, as follows: (a) As a member of any board, commission, or advisory committee, upon appointment by the Governor, the Speaker of the Assembly, the President pro Tempore of the Senate, director of a state department, or the governing board of the contracting agency. However, the appointment shall not be deemed employment within the meaning of Division 4 (commencing with Section 3200) and Division 4.5 (commencing with Section 6100) of the Labor Code, and shall not provide a basis for the payment of workers' compensation to a retired state employee or to his or her dependents. (b) As a school crossing guard. (c) As a juror or election officer. (d) As an elective officer on and after Scptcmbcr 15, 1961. However, all rights and immunities which may have accrued under Section 21229 as it read prior to that section's repeal during the 1969 Regular Session of the Legislature are hereby preserved. (e) As an appointive member of the governing body of a contracting agency. However, the compensation for that office shall not exceed one hundred dollars ($100) per month. (f) Upon appointment by the Legislature, or either house, or a legislative committee to a position deemed by the appointing power to be temporary in nature. (g) Upon employment by a contracting agency to a position found by the governing body, by resolution, to be available because of a leave of absence granted to a person on payroll status for a period not to exceed one year and found by the goveming body to require specialized skills. The temporary employment shall be terminated at the end of the leave of absence. Appointments under this section shall be reported to the board and shall be accompanied by the resolution adopted by the governing body. (h) Upon appointment by the governing body of a contracting agency to a position deemed by the governing body to be of a limited duration and requiring specialized skills or during an emergency to prevent stoppage of public business. These appointments, in addition to any made pursuant to Section 21224, shall not exceed a total for all employers of 960-hours in any calendar year. When an appointment is expected to, or will, exceed 960-hours in any calendar year, the governing body shall request approval from the board to extend the temporary employment. The governing body shall present a resolution to the board requesting action to allow or disallow the employment extension. The resolution shall be presented prior to the expiration of the 960-hour maximum for the calendar year. The appointment shall continue until notification of the board's decision is received by the governing body. The appointment shall be deemed approved if the board fails to take action within 60 days of receiving the request. Appointments under this subdivision may not exceed a total of one year. (i) Upon appointment by the Administrative Director of the Courts to the position of Court Security Coordinator, a position deemed temporary in nature and requiring the specialized skills and experience of a retired professional peace officer. (Added by Stats. 1955, Ch. 253; amended and renumbered by Stats. 1957, Ch. 936 and Ch. 1484; former 21151 added by Stats. 1955, Ch. 973; amended and renumbered by Stats. 1957, Ch. 65; and amended and renumbered by Stats. 1957, Ch. 936; present 21151 added by Stats. 1957, Ch. 936; repealed and added by Stats. 1969, Ch. 1227, operative 12/1/69; amended by Stats. 1977, Ch. 505; by Stats. 1983, Ch. 639, effective 9/1/83; by Stats. 1987, Ch. 122; by Stats. 1989, Ch. 192; by Stats. 1990, Ch. 29, effective 3/20/90, operative 1/1/90; by Stats. 1993, Ch. 1297, operative 7/1/94; and by Stats. 1995, Ch. 760, effective 10/11/95; amended and renumbered by Stats. 1996, Ch. 906; amended by Stats. 1997, Ch. 951.) City of National City, California COUNCIL AGENDA STATEMENT ,IEETING DATE August 16, 2005 AGENDA ITEM NO. 15 ITEM TITLE WARRANT REGISTER #03 PREPARED BY DEPARTMENT Finance City Manager EXPLANATION Lin Wurbs 619-336-4240 Ratification of Warrant Register #03 per Government Section Code 37208. Environmental Review N/A Financial Statement Not applicable. Approved By: OIL" y Finance ector Account No. STAFF RECOMMENDATION I recommend ratification of these warrants for a total of $ 2,375,437.51. BOARD / COMMISSION RECOMM NDATION ATTACHMENTS ( Listed Below) Resolution No. 1. Warrant Register #03 2. Workers Comp Warrant Register dated 07/13/05 3. Payroll Warrant Register dated 07/13/05 A-200 t9 991 Payee City of National City WARRANT REGISTER # 03 7/19/05 Description chk no chk date amount NAUTILUS HEALTH & FITNESS FITNESS EQUIPMENT, NEW FIRE STATION 200138 7/19/05 12,780.00 OFFICE PAVILION FURNITURE$ FOR NEW FIRE STATION 200139 7/19/05 105,867.53 APARICIO RETURNED DIRECT DEPOSIT PAYDAY 07/13/05 202381 7/14/05 382.86 RODRIGUEZ RETURNED DIRECT DEPOSIT PAYDAY 07/13/05 202382 7/14/05 404.42 JONES RPLC DIRECT DEP RETURNED BY BOFA 7/13/05 202383 7/18/05 1,546.92 CSMFO CSMFO LUNCHEON MEETING 07/14/05-6 PERSON 202384 7/18/05 150.00 ALLSTAR WATER COND. CONTRACT SERVICES (LIT. INTI. XIII) 202385 7/19/05 18.95 ALTON TRAVEL (AMERICORPS/LSTA Y-2) 202386 7/19/05 52.02 BAKER & TAYLOR BOOKS (PRIME TIME) 202387 7/19/05 3,283.95 BAUTISTA TRAVEL (AMERICORPS/LSTA Y-2) 202388 7/19/05 63.24 BOOKPOWER INSTRUCTIONAL SUPPLIES (WOW) 202389 7/19/05 3,078.00 `ROADCAST MEDIA CENTER EXPERT SERVICES (LIT. INIT. XIII) 202390 7/19/05 3,500.00 CARIGNAN POSTAGE (LIT. INIT. XIII) 202391 7/19/05 49.38 CAROLINE BEVERSTOCK TRAVEL (LIT. INIT. XIII) 202392 7/19/05 304.54 CASA VICKY TRAVEL (LIT. INIT. XIII) 202393 7/19/05 563.54 CATHAY RETA CONTRACT SERVICES (PRIME TIME) 202394 7/19/05 1,250.00 CATHAY RETA TRAVEL (PRIME TIME) 202395 7/19/05 48.60 CINGULAR WIRELESS TELEPHONE (WINGS) 202396 7/19/05 256.43 CISNEROS EXPERT SERVICES (PRIME TIME) 202397 7/19/05 1,100.00 CITY OF NATIONAL CITY TAXES 202398 7/19/05 1,170.36 COPIER SOLUTIONS PRINTING (AMERICORPS/LSTA Y-2) 202399 7/19/05 819.65 DEERING TRAVEL (AMERICORPS/LSTA Y-2) 202400 7/19/05 30.94 DEL NORTE COUNTY PUBLIC LIBRAR TRAVEL (PRIME TIME) 202401 7/19/05 600.00 DELANEY EDUCATIONAL BOOKS (WOW) 202402 7/19/05 879.67 DISCOUNT SCHOOL SUPPLY MATERIALS & SUPPLIES (WINGS) 202403 7/19/05 8,890.13 EBERLY EXPERT SERVICES (PRIME TIME) 202404 7/19/05 750.00 .:DC/USBORNE BOOKS BOOKS (LIT. SVCS. Y-2) 202405 7/19/05 59.11 EMMA TORREZ TRAVEL (LIT. INIT. XIII) 202406 7/19/05 139.45 FEDEX POSTAGE (L.IT. SVCS. Y-2) 202407 7/19/05 27.04 1 FENCL FERGUSON TRAVEL (AMERICORPS/LSTA Y-2) FUHRMANN EXPERT SERVICES (PRIME TIME) GEORGE TRAVEL (LIT. INIT. XIII) GROSS TRAVEL (LIT. INIT. XIII) HARPER TRAVEL (AMERICORPS/LSTA Y-2) HARTZ TRAVEL (AMERICORPS/LSTA Y-2) HOLCOMB TRAVEL (AMERICORPS/LSTA Y-2) JANWAY COMPANY USA, INC. MATERIALS & SUPPLIES (LIP. INIT. XIII) JONES EXPERT SERVICES (LIT. INIT. XIII) JONES TRAVEL (LIT. INIT. XIII) JONES TRAVEL (LIT. INIT. XIII) KELLY PAPER MATERIALS & SUPPLIES (LIT. SVCS Y-2) LAKESHORE LEARNING MATERIALS INSTRUCTIONAL SUPPLIES (WINGS) LANGLO TRAVEL (AMERICORPS/LSTA Y-2) LIBRARY SYSTEMS & SERVICES LLC EXPERT SERVICES (LIT. INIT. XIII) LITERACYWORKS EXPERT SERVICES (AMERICORPS/CNCS Y-2) LITERACYWORKS EXPERT SERVICES (AMERICORPS/LSTA Y-2) LITERACYWORKS EXPERT SERVICES (LIT. INIT. XIII) LITERACYWORKS CONTRACT SERVICES (LIT. INIT. XIII) LITERACYWORKS EXPERT SERVICES (AMERICORPS/LSTA Y-2) LITERACYWORKS EXPERT SERVICES (AMERICORPS/LSTA Y-2) MALDONADO EXPERT SERVICES (PRIME TIME) MGT OF AMERICA CONTRACT SERVICES (LIT. INIT. XIII) MIDWEST TAPE MAT & SUPPLIES (LITERACY SERVICES Y-2) MISSISSIPPI IND FOR THE BLIND MAT. & SUPPLIES (AMERICORPS/LSTA Y-2) MONACO VIDEO/LABS, INC. EXPERT SERVICES (LIT. NIT. XIII) MORENO TRAVEL (LIT. INIT. XIII) MORTAROTTI-RAMIREZ PRODUCTIONS CONTRACT SERVICES (LIT. INIT. XIII) NINNIS TRAVEL (AMERICORPS/LSTA Y-2) NOLAN EXPERT SERVICES (PRIME TIME) O'HARA RENTALS & LEASES (LIT. SVCS Y-2) O'REILLY TRAVEL (AMERICORPS/LSTA Y-2) OAKES TRAVEL (AMERICORPS/LSTA Y-2) OFFICE SUPPLIES PLUS OFFICE SUPPLIES (LIR. INIT. XIII) ORIENTAL TRADING, CO., INC. INSTRUCTIONAL SUPPLIES (WINGS) 202408 7/19/05 42.67 202409 7/19/05 750.00 202410 7/19/05 69.15 202411 7/19/05 18.0 202412 7/19/05 49.64 202413 7/19/05 215.42 202414 7/19/05 50.32 202415 7/19/05 358.15 202416 7/19/05 600.00 202417 7/19/05 124.64 202418 7/19/05 102.45 202419 7/19/05 735.39 202420 7/19/05 733.34 202421 7/19/05 94.60 202422 7/19/05 5,000.00 202423 7/19/05 70,000.00 202424 7/19/05 15,500.00 202425 7/19/05 4,000.0C 202426 7/19/05 2,250.00 202427 7/19/05 1,000.00 202428 7/19/05 380.00 202429 7/19/05 300.00 202430 7/19/05 10,000.00 202431 7/19/05 392.02 202432 7/19/05 4,671.00 202433 7/19/05 3,314.71 202434 7/19/05 16.31 202435 7/19/05 2,500.00 202436 7/19/05 135.32 202437 7/19/05 750.00 202438 7/19/05 334.00 202439 7/19/05 52.27 202440 7/19/05 64.00 202441 7/19/05 4,301.81 202442 7/19/05 3,933.28 2 PARKER EXPERT SERVICES (PRIME TIME) 202443 7/19/05 750.00 POSTMASTER POSTAGE (AMERICORPS/LSTA Y-2) 202444 7/19/05 1,372.96 PRATS-ASCHHEIM TRAVEL (LIT. INIT. XIII) 202445 7/19/05 95.58 REVEDEL EXPERT SERVICES (LIT. INIT. XIII) 202446 7/19/05 1,025.00 PREVEDEL TRAVEL (LIT. INIT. XIII) 202447 7/19/05 111.96 PROLITERACY AMERICA MEMBERSHIPS (LIT. INIT. XIII) 202448 7/19/05 7,875.00 QUALITY BOOKS INC. BOOKS (LIT. SVCS. Y-2) 202449 7/19/05 5,112.00 QUILL CORPORATION OFFICE SUPPLIES (AMERICORPS/LSTA Y-2) 202450 7/19/05 2,450.45 RACO INDUSTRIES MATERIALS & SUPPLIES (WOW) 202451 7/19/05 7,875.00 REDER EXPERT SERVICES (PRIME TIME) 202452 7/19/05 750.00 REINKE TRAVEL (LIT. INIT. XIII) 202453 7/19/05 686.66 RIVAS TRAVEL (LIT. INIT. XIII) 202454 7/19/05 315.74 ROBINSON TRAVEL (AMERICORPS/LSTA Y-2) 202455 7/19/05 46.24 ROSS TRAVEL (AMERICORPS/LSTA Y-2) 202456 7/19/05 76.16 RUTH TRAVEL (AMERICORPS/LSTA Y-2) 202457 7/19/05 82.29 RYCRAFT EXPERT SERVICES (PRIME TIME) 202458 7/19/05 350.00 SANCHEZ TRAVEL (AMERICORPS/LSTA Y-2) 202459 7/19/05 9.11 SANDOVAL EXPERT SERVICES (PRIME TIME) 202460 7/19/05 350.00 SARAIDA TRAVEL (LIT. INIT. XIII) 202461 7/19/05 133.98 SCHWARTZBERG TRAVEL (LIT. INIT. XIII) 202462 7/19/05 177.25 SCLLN EXPERT SERVICES (LIT. INIT. XIll) 202463 7/19/05 165.00 SHERRY DROBNER TRAVEL (LIT. INIT. XIII) 202464 7/19/05 72.90 SNOW TRAVEL (AMERICORPS/LSTA Y-2) 202465 7/19/05 63.58 SOCIAL STUDIES SCHOOL SERVICE INSTRUCTIONAL SUPPLIES (WINGS) 202466 7/19/05 27.08 SORENSEN TRAVEL (AMERICORPS/LSTA Y-2) 202467 7/19/05 4.08 STRATEGIC RESOURCE COMPANY EXPERT SERVICES (AMERICORPS/LSTA Y-2) 202468 7/19/05 1,962.00 SUTTER COUNTY LIBRARY TRAVEL (AMERICORPS/CNCS Y-2) 202469 7/19/05 825.60 TEACHING STUFF INC. INSTRUCTIONAL SUPPLIES (WINGS) 202470 7/19/05 299.80 THACKOORIE EXPERT SERVICES (PRIME TIME) 202471 7/19/05 300.00 THE VIDEO STORE SHOPPER MAT. & SUPPLIES (AMERICORPS/LSTA Y-2) 202472 7/19/05 1,246.50 TIGII, TAMARIE INSTRUCTIONAL SUPPLIES (WINGS) 202473 7/19/05 116.28 TOUSLEY TRAVEL (LIT. INIT. X111) 202474 7/19/05 50.45 .tEETOP PUBLISHING MATERIALS & SUPPLIES (LIT. SVCS. Y-2) 2b2475 7/19/05 2,550.00 U.S. POST OFFICE POSTAGE (LIT. NIT. XIII) 202476 7/19/05 1,823.27 WILLIAMS TRAVEL (LIT. INIT. XIII) 202477 7/19/05 151.00 3 WILLOUGHBY ZAP PRINTING & GRAPHICS ZAP PRINTING & GRAPHICS AL'S COINS AMAZON.COM CREDIT BAKER & TAYLOR C & S SALES, INC. CITY OF NATIONAL CITY DIEGO & SON PRINTING CO. JANIE ANDERSON, CFRE OMNIGRAPHICS, INC. RAINBOW BOOK COMPANY SUNBELT PUBLICATIONS INC TIIOMSON GALE U.S. POSTMASTER ACCOUNTEMPS ACCOUNTEMPS ACE UNIFORMS & ACCESSORIES,INC AIRGAS-WEST ALCEM FENCE CO., INC, ALPHA OMEGA SERVICES AMERICAN WATER WORKS ASSOC ARCO GASPRO PLUS ASBURY ENVIRONMENTAL SERVICES AVALOS BICKMORE RISK SERVICES BLACKIE'S `1ROPHIES AND AWARDS CALBO CALIFORNIA POLICE CHIEFS' CHEVRON USA, INC. CHILDREN'S HOSPITAL CHOICEPOINT CITY OF CHULA VISTA CORPORATE EXPRESS CORPORATE EXPRESS TRAVEL (LIT. INIT. XIII) PRINTING (LIT. INIT. XIII) EXPERT SERVICES (LIT. INIT. XIII) BOOKS BOOKS(IMLS) BOOKS MATERIALS & SUPPLIES(CAPITAL OUTLAY) NNE - SALES TAX PRINTING & BINDING CONTRACT SERVICES(CAPITAL OUTLAY) BOOKS BOOKS(IMLS) BOOKS BOOKS POSTAGE TEMP SRVCS PATRICK B MORRIS W/E 07/01/05 TEMP SRVCS MARY-JO REBELEZ W/E 07/01/05 CLASS "A" UNIFORMS FOR FIREFIGHTERS MOP 45714 SAFETY EQUIPMENT REPAIR 8 DAMAGED PLANTER BOXES LOCATED ANNUAL SCBA MASK FIT TEST FOR RENEWAL-JOE SMITH 8/01/05 TO 7/31/06 FUEL FOR CITY FLEET AS NEEDED FOR FY WATER/GAS (55 GAL) MANIFEST REFUND FOR CITATION NC241 107003 EXPERT & CONSULTANT SERVICES JUN 2005 MISC. NAMETAGS, PINS AND WEAPONS TAGS TRAINING REGIST/CANTERO H OCT 24-28 2005 DUES 7/1/05-6/30/06-CHIEF GONZALES MOP 45699 FUEL FOR CITY FLEET CHILD SEXUAL ASSAULT EXAMS AS NEEDED AUTO TRACK DATABASE - UNLIMITED ACCESS ANIMAL SHELTER SRVCS MAY 2005 MOP 45704 OFFICE SUPPLIES MOP 45704 OFFICE SUPPLIES 202478 202479 202480 202481 202482 202483 202484 202485 202486 202487 202488 202489 202490 202491 202492 202493 202494 202495 202496 202497 202498 202499 202500 202501 202502 202503 202504 202505 202506 202507 202508 202509 212510 202511 202512 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 7/19/05 208.98 6,397.61 3,407.17 145.4 820.21 3,035.10 2,502.40 63.47 1,101.20 3,224.12 55.85 48,882.87 30.69 1,575.92 444.00 1,358.40 1,332.00 21,046.77 142.29 1,725.00 108.00 150.00 20,885.59 887.85 50.00 6,000.00 21.55 526.00 395.00 53.58 346.00 100.00 16,633.02 156.21 1,682.13 4 COUNTY OF SAN DIEGO ASSESSOR MAP PAGES 7/01/04 THRGH 6/30/05 202513 7/19/05 52.00 CSAC EXCESS INSURANCE AUTHORTY EXCESS W/C INSURANCE 07/01/05 - 06/30/06 202514 7/19/05 82,325.00 DANIEL PEARCE/ RPM WELDING MOP 45749 REPAIRS 202515 7/19/05 996.55 EPT OF CONSERVATION SMIP FEES, APRIL 2005 - JUNE 2005 202516 7/19/05 312.93 DOCUMENT SERVICES, ISF APRIL 2005 MAIL SERVICES 202517 7/19/05 4,257.21 DREW FORD MOP 49078 SEAL/NUT 202518 7/19/05 33.22 ENVIRONMENTAL HAZARDS SERVICES LEAD WIPE SAMPLES ANALYZED 202519 7/19/05 246.00 FEDEX PRINTING JOB OF 6200 POSTCARDS 202520 7/19/05 187.05 FIRE ETC PURCHASE OF ONE HI -RISK PACK 202521 7/19/05 40.50 FIRE ETC PURCHASE OF TWO STEEL CUTTING BLADES 202522 7/19/05 30.17 FROMEX PHOTO &STUDIO MOP 67534 PHOTO PROCESSING 202523 7/19/05 159.66 GRAINGER MAT, ANTI FATIGUE 202524 7/19/05 597.49 HAINES & COMPANY 2, 12 MONTH LEASES, NORTH & SOUTH S. D. 202525 7/19/05 1,314.68 HANSON AGGREGATES PACIFIC CONCRETE SAND 202526 7/19/05 613.10 HERNANDEZ REIMB ADDTL AMT PD FOR DIGITAL PROJECTOR 202527 7/19/05 53.88 IAFC REGISTRATION FOR FIRE CHIEF RODERICK 202528 7/19/05 525.00 INT'L HISPANIC NETWORK INT_ HISPANIC NETWORK MEMBERSHIP APP. 202529 7/19/05 50.00 'RON MOUNTAIN RECORDS MGMT IRON MOUNTAIN STORAGE FEES 202530 7/19/05 75.00 LASER SAVER, INC. MOP 45725 BROTHER TN460 COMPATIBLE 202531 7/19/05 118.42 LAUGHLIN FALBO LEVY & M WC CLAIM COSTS PROFF SRVCS MAY 2005 202532 7/19/05 110.00 LEXISNEXIS N C CODE ONLINE 5/05 CD 202533 7/19/05 80.20 LONG'S DRUG STORES MOP 45727 POLAROID FILM SUPPLIES 202534 7/19/05 25.85 MCDOUGAL LOVE ECKIS SMITH & LIABILITY CLAIM COSTS EDWORDS V CITY 202535 7/19/05 1,919.00 MEDINA EMPLOYEE REIMB/MAILING/MEDINA ROBERTO 202536 7/19/05 42.16 MEJIA REIMB CONE EXPS IAFF EMRGNCY MED SRVCS 202537 7/19/05 154.60 MORE DIRECT HP COLOR LASERJET 4610N PRINTER 202538 7/19/05 1,327.48 NAPA AUTO PARTS MOP 45735 GLOVES 202539 7/19/05 144.48 NATIONAL CITY CAR WASH CAR WASHES FOR FLEET JUNE 2005 202540 7/19/05 440.00 NATIONAL FORUM FOR BLACK RENEW NFBPA MEMBERSHIP/CHRIS ZAPATA 202541 7/19/05 150.00 NC SENIOR NUTRITION PROGRAMS CATERING AT ART CTR WKSHP/LESLIE 202542 7/19/05 265.00 NC SENIOR NUTRITION PROGRAMS CATERING AT CPRC MTG 6/15/05 202543 7/19/05 65.00 NC SENIOR NUTRITION PROGRAMS CATERING AT CPRC MTG 3/09/05 202544 7/19/05 60.00 .FFICE PAVILION OFFICE FURNITURE FOR THE NEW LIBRARY, 2'02545 7/19/05 275,112.49 OFFICE TEAM TEMP SRVCS JOSEPH OLSON W/E 06/24/05 202546 7/19/05 1,726.56 OFFICE TEAM TEMP SRVCS JOSF,PH OLSON W/E 06/10/05 202547 7/19/05 767.36 5 OFFICE TEAM TEMP SRVCS JOSEPH OLSON W/E 05/06/05 OFFICE TEAM TEMPORARY HELP OLSON JOSEPH W/E 6/17/05 ONE SOURCE DISTRIBUTORS MOP 67256 TOOLPOUCH ORIENTAL TRADING, CO., INC. ADULT WESTERN HATS W/BAND, ITEM #15/8218 OUCIII'S POWER EQUIPMENT MOP 45740 THROTTLE CABLE PARADE STORE / GLENDALE IND. #94W. POLISHED OAK FLAG POLE. PARTS PLUS AUTOSTORE #713 MOP 64946 PERMATEX PIERCE MANUFACTURING INC TOOLBOARD, PIVOT, RUD. 55.19W. PRUDENTIAL OVERALL SUPPLY MOP 45742 CLEANING S.D.ASSOC. OF GOVERNMENTS 06 SANDAG MEMBER AGENCY ASSESSMENT SAN DIEGO COUNTY CHIEFS' ANNUAL DUES FOR ASSO 7/1/05-6/30/06 SAN DIEGO PET & LAB SUPPLY MOP 45753 PET SUPPLIES SAN DIEGO POLICE EQUIPMENT CTS-3330/CTS 37MM LIQUID PROJECTILE, CS SANDPIPA LIABILITY INS PROG RENEW 7/01/05-7/01/06 SANDPIPA PROPERTY INSURANCE 7/01/05 TO 7/01/06 SCHMIDT DESIGN GROUP DEVELOP ARCHITECTURAL PLANS FOR SDCPA SD COUNTY ASSOC. OF PARAMEDICS PROTOCOLS SHARP REES-STEALY MED GROUP ANNUAL TB TESTING FOR 2005 FOR SMART & FINAL MOP 45756 SUPPLIES SMART & FINAL STORE #347 MOP 45756 BAGS OF ICE SOUTHWEST SIGNAL SERVICE, INC. TRAFFIC SIGNAL, ST LIGHTING JUNE 2005 STARK MFG. CO. REPAIR KNEES ON TURNOUT PANTS STARK MFG. CO. REPAIR ONE SALVAGE COVER STARK MFG. CO. REPAIR TURNOUT JACKET STARK MFG. CO. REPAIR TURNOUTS PANTS AND JACKET STATE COMPENSATION INS FUND WC CLAIM COSTS ADMNST/LITIGATION JUN'05 SWEETWATER AUTHORITY WATER BILLS/STREET 14 ACCTS SWEETWATER AUTHORITY WATER BILLS/STREET 19 ACCOUNTS THE SAN DIEGO UNION -TRIBUNE SD UNION TRIBUNE RENEWAL ACCT#478540 TURF STAR CUP - SCALP, ANTI U.S. IDENTIFICATION MANUAL SUB. RENEWAL 4 U.S. ID MANUAL #21563 UNDERGROUND SERV ALERT DIG ALERT, JUNE TICKETS 111 @ $1.40 AIRGAS WEST HELIUM TANK AVAYA, INC VOICEMAIL SERVICE BAYSHORE TRANSIT MGMT INC PAYROLL CK DTD 07/15/05 202548 7/19/05 767.36 202549 7/19/05 767.36 202550 7/19/05 39.85 202551 7/19/05 268.5 202552 7/19/05 66.20 202553 7/19/05 492.50 202554 7/19/05 42.13 202555 7/19/05 1,948.93 202556 7/19/05 568.42 202557 7/19/05 3,099.00 202558 7/19/05 350.00 202559 7/19/05 457.96 202560 7/19/05 6,785.13 202561 7/19/05 367,938.00 202562 7/19/05 61,992.23 202563 7/19/05 942.09 202564 7/19/05 40.00 202565 7/19/05 30.0r 202566 7/19/05 12.08 202567 7/19/05 12.89 202568 7/19/05 11,497.26 202569 7/19/05 50.00 202570 7/19/05 25.00 202571 7/19/05 25.00 202572 7/19/05 25.00 202573 7/19/05 6,696.20 202574 7/19/05 14,918.76 202575 7/19/05 4,069.76 202576 7/19/05 180.00 202577 7/19/05 57.88 202578 7/19/05 88.48 202579 7/19/05 154.00 202580 7/19/05 680.64 202581 7/19/05 46.88 202582 7/19/05 49,293.32 6 BLUE SHIELD OF CA DENTAL INSUR - JULY '05 202583 7/19/05 549.80 BOARD OF EQUALIZATION DIESEL FUEL TAX - 2ND QTR 202584 7/19/05 374.89 CALIFORNIA COMMERCIAL SECURITY TROUBLESHOOT CAMERA SYSTEM 202585 7/19/05 308.75 1NTAS CORPORATION #694 MAINT LAUNDRY SERVICE 202586 7/19/05 431.36 CINTAS FIRST AID & SAFETY FIRST AID & SAFETY 202587 7/19/05 211.12 CONRAD AND ASSOCIATES, LLP PROGRESS BILLING FOR AUDITING SERVICES 202588 7/19/05 4,500.00 CORPORATE EXPRESS OFFICE SUPPLIES 202589 7/19/05 53.92 COUNTY OF SAN DIEGO PPE 07/09/05 - JOSE VAZQUEZ 202590 7/19/05 50.00 COUNTY OF SAN DIEGO PAYROLL PPE 07/09/05 - SHERRY LOGEL 202591 7/19/05 23.04 COUNTY OF SAN DIEGO GENRL HAZARDOUS MATERIALS PERMIT. 202592 7/19/05 1,225.50 DE LA RUE CASH SYSTEMS INC RIBBON CARTRIDGE 202593 7/19/05 119.26 DHL EXPRESS (USA) INC. SHIPPING CHARGES 202594 7/19/05 19.93 DIRECT TV DIRECT TV - 07/13/05 - 08/12/05 202595 7/19/05 74.98 DIXIELINE LUMBER CO SHOP SUPPLIES 202596 7/19/05 33.95 FIRST ADVANTAGE CORPORATION RANDOM DRUG TESTING 202597 7/19/05 230.00 FROMEX PHOTO & STUDIO DIGITAL PRINT 202598 7/19/05 110.24 GIBBS TANK REPAIR 202599 7/19/05 205.45 *TM'S GLASS & SCREENS AUTO PARTS 202600 7/19/05 542.37 KAISER FOUNDATION HEALTH PLAN MEDICAL INSUR - AUGUST '05 202601 7/19/05 22,028.00 KARSCOT DISTRIBUTORS/FUN ZONE SAFETY GATES 202602 7/19/05 618.04 KIWANIS CLUB OF NATIONAL CITY DUES & MEALS 202603 7/19/05 134.00 L.C. TURBO TURBOS 202604 7/19/05 6,087.88 LASER SAVER INC TONER & INKJET 202605 7/19/05 1,953.72 NATIONAL CITY PUBLIC LIBRARY LIBRARY CONT PPE 07/09/05 202606 7/19/05 29.85 NATIONAL CITY TROPHY GOLD BRASS NAME TAGS 202607 7/19/05 69.77 NATIONAL INTERSTATE INS CO. LIABILITY INSUR 7/28/05 202608 7/19/05 16,418.91 NATL CITY CHAMBER OF COMMERCE ADVERTISING & BOOTH EVENT FEE 202609 7/19/05 300.00 NEW FLYER PARTS AUTO PARTS 202610 7/19/05 906.44 NEXTEL COMMUNICATIONS PHONE CHARGES 07/13/05 202611 7/19/05 723.51 PLASTIC PRODUCTS MFG. BROCHURE HOLDER 202612 7/19/05 433.90 PRINCIPAL FINANCIAL GROUP 401 K PPE 07/09/05 202613 7/19/05 1.426.45 PRUDENTIAL INSURANCE LIFE INSUR - JULY 05 202614 7/19/05 , 266.38 OTEC INDUSTRIAL PRODUCTS SHOP SUPPLIES 202615 7/19/05 142.00 SAN DIEGO COUNTY SHERIFF PAYROLL PPE 07/09/05 202616 7/19/05 50.00 SATELLITE PHONE STORE SATELLITE EMERGENCY PHONE/PLAN 202617 7/19/05 2,508.50 7 SMART & FINAL FOOD FOR PICNIC 202618 7/19/05 507.42 SOUTH COAST MEDICAL CLINIC PRE -EMPLOYMENT PHYSICAL 202619 7/19/05 108.00 SWEETWATER AUTHORITY WATER 04/27/05 - 06/28/05 202620 7/19/05 856.78 THE LIGHTHOUSE AUTO PARTS 202621 7/19/05 89.1 WEBSTER FOOD & GIFT CARDS FOR SAFETY AWARD BBQ 202622 7/19/05 171.92 Total 1,439,404.95 Workers compensation checks 10225 7/13/05 11.69 10226 7/13/05 115.10 10227 7/13/05 9.25 10228 7/13/05 344.06 10229 7/13/05 1,264.98 10230 7/13/05 495.00 10231 7/13/05 495.00 10232 7/13/05 163.41 10233 7/13/05 83.94 10234 7/13/05 58.1: 10235 7/13/05 67.35 10236 7/13/05 497.83 10237 7/13/05 133.60 10238 7/13/05 482.00 10239 7/13/05 330.00 10240 7/13/05 253.71 10241 7/13/05 269.40 10242 7/13/05 67.35 10243 7/13/05 156.84 10244 7/13/05 15.92 10245 7/13/05 170.08 10246 7/13/05 25.40 10247 7/13/05 27.84 10248 7/13/05 9.06 10249 7/13/05 13.25 10250 7/13/05 313.68 1025] 7/13/05 72.25 8 PAYROLL Pay period Stan Date F.nd Dale Check Date 257 6/21/05 7/4/05 7/13/05 GRAND TOTAL Total 10252 7/13/05 296.29 10253 7/13/05 265.04 10254 7/13/05 2,122.75 10255 7/13/05 134.79 10256 7/13/05 58.12 10257 7/13/05 4,352.60 10258 7/13/05 45.90 10259 7/13/05 147.00 10260 7/13/05 83.94 10261 7/13/05 47.60 10262 7/13/05 126.36 10263 7/13/05 127.78 10264 7/13/05 11.69 10265 7/13/05 131.73 10266 7/13/05 286.45 10267 7/13/05 110.50 10268 7/13/05 66.88 10269 7/13/05 58.11 10270 7/13/05 86.10 10271 7/13/05 365.73 10272 7/13/05 77.09 10273 7/13/05 400.00 10274 7/13/05 1,192.40 10275 7/13/05 370.00 10276 7/13/05 320.00 10277 7/13/05 73,602.00 10278 7/13/05 13,500.00 104,332.96 Total 831,699.60 2,375,437.51 9 LIBRARY WARRANTS CHECKS'I202385-202492 TRANSIT WARRANTS CHECK#202580-202622 PAID OUT OF HUD GUARANTEED LOAN FUND ACCT STATION. CHECK#200138-200139 108 CHECKS $ 270,971.46 43 CHECKS $ 114,915.98 FOR THE CONSTRUCTION OF THE NEW FIRE 2 CHECKS $ 118 647 53 • 10 City of National City Warrant Register # 03 7/19/05 001 GENERAL FUND 672,346.71 104 LIBRARY FUND 36,113.35 105 PARKS MAINTENANCE FUND 22,467.63 108 LIBRARY CAPITAL OUTLAY 5,726.52 125 SEWER SERV►CE FUND 11,902.96 154 STATE PUBLIC LIBRARY FUND 1,703.09 171 LIBRARY SCHOOL DISTRICT CNTRCT 900.05 172 TRASH RATE STABILIZATION FUND 1,685.05 173 NATIONAL SCHOOL DIST CONTRACT 2,441.04 174 SWEETWATER SCHOOL DIST CONTRAC 5,782.36 188 GRANT - HIDTA 2,538.65 211 SECURITY AND ALARM REGULATION FUND 1,283.33 212 PERSONNEL COMPENSATION FUND 0.00 222 WOW MOBILE GRANT FY 2000-2001 20,661.75 225 ENGLISH LANGUAGE LITERACY INCENTIVE ELLI 66.90 230 ABANDONED VEHICLE ABATEMENT GRANT 3,143.10 241 NATIONAL CITY LIBRARY STATE GRANT 178,823.12 242 N. CITY LIBRARY MATCHING FUND 96,289.37 246 WINGS GRANT 60,638.46 250 NEW FIRE STATION CONSTRUCTION 118,647.53 254 LEAD -BASED PAINT HAZARD REDUCTION GRANT 8,402.70 273 CBAG-MAJOR MEXICAN TRAFFICKERS 3,380.90 274 LITERACY INITIATIVE XIII 57,479.02 275 EASY VOTER GUIDE GRANT 1,458.99 276 LITERACY SERVICES YEAR 2 10,590.33 277 NC PUBLIC LIBRARY DONATIONS FUND 611.50 278 AMERICORPS LSTA GRANT II 31,759.75 279 PRIME TIME FAMILY READING TIME 11,363.49 280 AMERICORPS/CNCS YEAR 2 GRANT 76,170.14 283 INST OF MUSEUM & LIBRARY SVCS GRANT 49,151.00 301 GRANT-C.D.B.G. 8,004.41 302 CDC PAYMENTS 14,984.34 307 PROPOSITION A" FUND 3,961.95 348 STATE GRANT 942.09 552 TDA 114,915.98 626 FACILITIES MAINT FUND 34,262.67 627 LIABILITY INS. FUND 634,876.74 628 GENERAL SERVICES FUND 5,060.81 629 INFORMATION SYSTEMS MAINTENANC 4,217.81 630 OFFICE EQUIPMENT DEPRECIATION 3,660.98 631 TELECOMMUNICATIONS REVOLVING 4,780.88 632 GENERAL ACCOUNTING SERVICES 18,485.55 643 MOTOR VEHICLE SVC FUND 33,754.51 Total 2,375,437.51 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. FINANCE DI OR (r'fri-en.. 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 16TH DAY OF AUGUST 2005. AYES NAYS ABSENT City of National City, California COUNCIL AGENDA STATEMENT ,IEETING DATE August 16, 2005 AGENDA ITEM NO. 16 (-ITEM TITLE WARRANT REGISTER #04 PREPARED BY DEPARTMENT Finance City Manager EXPLANATION Lin Wurbs 619-336-4240 Ratification of Warrant Register #04 per Government Section Code 37208. Environmental Review N/A (-Financial Statement Not applicable. Approved By: Xi. Finanj5 irector Account No. STAFF RECOMMENDATION I recommend ratification of these warrants for a total of $ 590,625.65. BOARD / COMMISSION RECO MENDATI ATTACHMENTS ( Listed Below) ' Resolution No. 1. Warrant Register#04 2. Workers Comp Warrant Register dated 07/26/05 3. A-200 (9:99) Payee AMERIGAS - SAN DIEGO JEFF KATZ ARCHITECTURE NEXUS INTEGRATION SERVICES SOUTHWEST SIGNAL SERVICE, IN BOARD OF EQUALIZATION STEEL MAGNOLIA UNITED STATES TREASURY ABC WIPING CLOTH, INC ACCOUNTEMPS ACEDO \DAM'S MARK HOTEL ALLSTATE INSURANCE CO ALLSTATE INSURANCE CO ALLSTATE INSURANCE CO ALLSTATE INSURANCE CO AMEDEE ANCHOR CLAIMS SERVICES, INC ANCI1OR CLAIMS SERVICES, INC BEST BEST & KRIEGER LLP BNI BUILDING NEWS BNl BUILDING NEWS BUTTS C & M RELOCATION SYSTEMS CA PLANNING & DEVELOPMENT R CALIFORNIA COMMERCIAL POOL ALIFORNIA COMMERCIAL SECUR City of National City WARRANT REGISTER # 04 7/26/05 - Description chk no APP& PARTS/FITTINGS 200140 JUN 2005 CONSRTCTN ADMIN SRVCS-FIRE ST200141 MULTI -MODE FIBER OPTIC EQUIPMENT FOR 200142 FIRE STATION BUTTON PRE-EMPTION 6/07/05200143 SALES & USE TAX 2ND QRTR 2005 202623 PUBLICATIONS SPONSOR 8TH FILIPINO FAMI202624 2ND QRTR 2005 MEDICARE TAXES RAGS TEMP SRVCS PATRICK MORRIS W/E 07/08/05 202625 202626 202627 REIMBURSEMENT FUN IN THE SUN PROGRA1202628 CONF HOTEL RSRVTN 8/10-14/05/JUNIEL COSTS OF REPORT OVRPMNT CASE#0505347 COSTS OF REPORT OVRPMT CASE#0505520 COSTS OF REPORT OVRPMNT CASE#0505117 COSTS OF REPORT OVRPMNT CASE#0505643 MUNI MGMT ASSOC CONF 7/6-7/8/05 COSTS OF REPORT OVRPMNT CASE#0505794 COSTS OF REPORT OVRPMNT CASE#0505790 LIABILITY CLAIM COSTS ACRETS CA CONSTRUCTION LAWS 2005 202629 202630 202631 202632 202633 202634 202635 202636 202637 202638 2003 STD SPECIFICATIONS PW CONSTRUCTIC202639 EDUC REIMBURSEMENT/T BUTTS 202640 MOVING CONTRACT FOR C & M RELOCATIOI202641 CA PLANNING & DEVELOPMENT REPORT 202642 JUNE 2005 SRVCS-IMPRVMNT OF COMMU PO(202643 MOP 45754 KEYS 202644 chk date amount 7/26/05 5.67 7/26/05 1,950.00 7/26/05 2,910.01 7/26/05 1,092.59 7/26/05 8,037.00 7/26/05 750.00 7/26/05 42.43 7/26/05 124.76 7/26/05 1,086.72 7/26/05 87.67 7/26/05 578.36 7/26/05 4.00 7/26/05 4.00 7/26/05 4.00 7/26/05 4.00 7/26/05 18.00 7/26/05 4.00 7/26/05 4.00 7/26/05 5,157.65 7/26/05 100.67 7/26/05 77.98 7/26/05 473.50 7/26/05 24,992.50 7/26/05 249.00 7/26/05 181,845.00 7/26/05 45.79 1 Payee CINGULAR WIRELESS CITY OF EL CAJON CITY OF NATIONAL CITY CITY OF NATIONAL CITY COPY POST PRINTING CORPORATE EXPRESS CORPORATE EXPRESS CURVES, NATIONAL CITY D-MAX ENGINEERING INC DAILY JOURNAL CORPORATION DAPPER TIRE COMPANY DEPARTMENT OF JUSTICE DEPARTMENT OF JUSTICE DIARIO LATINO DIAZ DIXIELINE LUMBER CO. DIXIELINE LUMBER CO. DOCUMENT SERVICES, ISF DONNOE & ASSOCIATES, INC. DSL EXTREME DURRA INK EL LATINO NEWSPAPER ENVIRONMENTAL I-IAZARDS SERV ENVIRONMENTAL HEALTH COALI FIRE ETC FROMEX PHOTO & STUDIO GARCIA City of National City WARRANT REGISTER # 04 7/26/05 Description ACCT 619-607-8115 TECH PERSONNEL SERVICES 4/13/05 chk no chk date amount 202645 7/26/05 142.97 202646 7/26/05 07/20/05 PETTY CASH 202647 7/26/05 LIBRARY -OUT OF STATE TAXES 2ND QRTR 2(202648 7/26/05 202649 7/26/05 202650 7/26/05 202651 7/26/05 202652 7/26/05 202653 7/26/05 202654 7/26/05 202655 7/26/05 202656 7/26/05 202657 7/26/05 202658 7/26/05 202659 7/26/05 202660 7/26/05 202661 7/26/05 202662 7/26/05 202663 7/26/05 202664 7/26/05 202665 7/26/05 ADVERTISEMENT FOR POLICE ANNOUNCEM=202666 7/26/05 202667 7/26/05 EHC CONTRACT LEAD HAZARD PUBLIC OUT1202668 7/26/05 HAWTHORNE WILDLAND BOOTS. 202669 7/26/05 STATE OF THE CITY INVITATIONS MISC. OFFICE SUPPLIES MOP 45704 SUPPLIES REFUND OF BANNER DEPOSIT JUNE 2005 SERVICES SENIOR ASSISTANT CITY ATTORNEY TIRES FINGERPRINTING CHARGES FOR NEW CITY FINGERPRINTING CHARGES FOR NEW CITY DIARIO LATINO PUBLICATION LICENSE REIMBURSEMENT MOP 45707 CONCRETE MIX MOP 45707 SUPPLIES JUNE 2005 MAIL SERVICES EXAM RENTAL FROM 4/12/05 UNTIL 4/26/05 1744251 DSL SERVICE FIREFIGHTER CAREER FLYER AND POSTER LEAD WIPE SAMPLES MOP 67534 REPORT OVERPAYMENT CASE#0307165 202670 7/26/05 202671 , 7/26/05 6.00 99.83 818.70 470.84 134.69 2,291.01 144.69 1,975.00 5,277.50 547.00 616.86 320.00 96.00 60.00 35.00 504.86 34.90 3,544.13 605.00 54.32 511.81 133.25 18.00 30,439.08 311.40 112.15 2 City of National City WARRANT REGISTER # 04 7/26/05 Payee GOLPER, SULLIVAN & REEDER GROSSMAN PSYCHOLOGICAL ASS GUTIERREZ HEARTLAND COMM. FAC. AUTHOR KARTCHNER ENGINEERING LLC KATZ OKITSU & ASSOCIATES KELLEY BLUE BOOK KLEINFELDER, INC. LA PRENSA SAN DIEGO LASER SAVER INC LEMUS ",EXIS-NEXIS LEXISNEXIS LIEBERT CASSIDY WHITMORE LONG'S DRUG STORES LOPEZ MAAC PROJECT MARIACHI SCHOLARSHIP MCDOUGAL LOVE ECKIS SMITH & MILITARY PRESS NEWSPAPER MINUTEMAN PRESS MOBILE DATACOMM MOBILE DATACOMM MOBILE DATACOMM MORE DIRECT MX LOGIC, INC TATIONAL CITY POA Description chk no COSTS OF REPORT OVERPAYMENT#0505794 202672 OFFICER ASSISTANCE PROGRAM FOR P0E1C1202673 T&A 000784 INSPECT FEES 1520 COOLIDGE AA 202674 FIRST QUARTER BILLING HCFA MEMBER CONSULTANT REVIEW/STUDY FINANCE DEP 202676 NC SPEED SURVEY 4/25/05-5/22/05 SERVICES 202677 USED CAR GUIDE/SUBSCRIPTION RENEWAL 202678 THRU MAY 8 2005 SRVCS-NC LIBRARY 202679 CLASSIFIED ADVERTISEMENT FOR FIREFIGH2O2680 MOP 45725 TONER 202681 REIMB/CITY INVITATION MATERIAL PURCID202682 ONLINE CHARGES FOR JUNE 2005 NATIONAL CITY CODE PRINT SUPP #12 5/05 RETAINER AGREEMENT FOR JUNE 2005 MOP 45727 INTERPRETING SRVCS JUL 20, 2005 LEAD HAZARD CONTROL GRANT PRGM MARIACHI SCHOLARSHIP FOUNDATION LIABILITY CLAIM COSTS ADVERTISING JOB OPPORTUNITY MOP 47939 CHECK -SIGNATURE CONTROL CA202692 LG VX3200 PHONES NEW AND REPLACEMEN' 202693 LG VX3200 PHONES HOLSTER LG VX3200 PHONES HOLSTER PANASONIC COMPUTER LAPTOP BATTERIES 202696 EMAIL PROTECTION, ANTI-SPAM SERVICE, 202697 POA RETIREMENT DINNER/CHIEF PAW 202698 . chk date amount 7/26/05 4.00 7/26/05 1,737.50 7/26/05 2,500.00 202675 7/26/05 67,985.00 7/26/05 6,865.08 7/26/05 13,652.50 7/26/05 60.00 7/26/05 5,164.50 7/26/05 132.00 7/26/05 446.84 7/26/05 180.46 202683 7/26/05 133.33 202684 7/26/05 622.11 202685 7/26/05 1,300.00 202686 7/26/05 116.28 202687 7/26/05 100.00 202688 7/26/05 46,620.00 202689 7/26/05 50.00 202690 7/26/05 415.25 202691 7/26/05 720.00 7/26/05 72.73 7/26/05 180.92 202694 7/26/05 90.81 202695 7/26/05 20.01 7/26/05 2,440.54 7/26/05 441.00 7/26/05 45.00 City of National City WARRANT REGISTER # 04 7/26/05 Payee NC SENIOR NUTRITION PROGRAMS NC SENIOR NUTRITION PROGRAMS NC SENIOR NUTRITION PROGRAMS OFFICE OF THE MEDICAL EXAMINE OFFICE TEAM PICHE PROFESSIONAL SOUND & MUSIC PRUDENTIAL OVERALL SUPPLY Description CATERING 8/19/04 POLICE AND FIRE DEPTS CATERING 3/01/05 LUNCH MEETING AT C/H CATERING/BREAKFAST MEETING 7/08/05 OBSERVER SAFETY CLOTHING TEMP SRVC ANN SIPICA W/E 07/01-7/08/05 EDUC REIMBURSEMENT/PICHE LIBRARY FFE: CORDLESS MIC SYSTEM MOP 45742 TOWELS PUBLIC EMP RETIREMENT SYSTEM SERVICE PERIOD 07-05-4 REEDER S.D. COUNTY SHERIFF'S DEPT. SAN DIEGO DAILY TRANSCRIPT SBC/MCI SHOEMAKER SMART & FINAL SPARKLETTS STARTECH COMPUTERS SWEETWATER AUTHORITY SWEETWATER AUTHORITY SWEETWATER AUTHORITY TALK TECHNOLOGIES, INC. TETRA TECH, INC. THE FILIPINO PRESS THE STAR NEWS U.S. HEALTHWORKS U.S. HEALTHWORKS U.S. HEALTHWORKS EDUCATIONAL REIMB/MARTIN REEDER BOOKING FEES FOR FY 2005 APR-JUNE ADVERTISEMENT FOR SENIOR ASSISTANT ACCT 619-336-1330-757 chk no chk date amount 202699 7/26/05 202700 202701 202702 202703 202704 202705 202706 202707 202708 202709 202710 202711 EDUCATIONAL REIMB/MICHAEL SHOEMAKE 202712 MATERIALS & SUPPLIES 202713 WATER FOR MAYOR AND CITY COUNCIL 0E1202714 MOP 61744-WESTERN DIGITAL WD800JB WATER BILLS/STREET 4 ACCTS WATER BILLS/STREET 3 ACCTS WATER BILLS/STREET#920-600-0 202715 202716 202717 202718 AT110, AUDIO-TECHNICA HEADSET MICROPI202719 PROF SRVCS FOR ST RESURFACING PROJ 202720 ADVERTISEMENT FOR JOB OPPORTUNITIES 202721 ADVERTISEMENT FOR JOB ANNOUNCEMENT 202722 MEDICAL SERVICES PRE -EMPLOYMENT PHY 202723 MEDICAL SERVICES PRE -EMPLOYMENT PHY 202724 MEDICAL SERVICES PRE -EMPLOYMENT PHY 202725 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 7/26/05 218.00 130.00 70.00 360.00 935.00 209.96 1,031.17 126.12 62,428.78 1,120.00 53,130.00 461.00 90.20 416.00 241.90 44.62 1,725.91 794.19 786.18 49.02 3,621.00 11,849.05 100.00 273.00 160.00 135.00 120.00 4 City of National City WARRANT REGISTER # 04 7/26/05 Payee Description f{p ySr N IptP chk no chk date amount UNION TRIBUNE PUBLISHING CO ADVERTISING -SENIOR ACCOUNTANT 202726 7/26/05 3,825.63 UNITED PARCEL SERVICE UPS SERVICE ONE TIME PICKUPS 7/12/05 202727 7/26/05 11.94 US STERLING CAPITAL CORP SERVICE CHARGES 59526, 59631 202728 7/26/05 396.00 VIORA EDUCATIONAL REIMB/BRIAN VIORA 202729 7/26/05 225.00 WEST GROUP PAYMENT CENTER ON-LINE CHARGES FOR JUNE 2005 202730 7/26/05 617.98 WOOD & WOOD LIABILITY CLAIM COSTS FRISBIE V C OF N C 202731 7/26/05 5,243.52 WOOD & WOOD LIABILITY CLAIM COSTS FLORES V. J.C.P.C. 202732 7/26/05 1,261.00 WOOD & WOOD LIABILITY CLAIM COSTS AHLES V. OFFICER 1202733 7/26/05 614.00 WOOD & WOOD LIABILITY CLAIM COSTS HANKS V. C OF N C 202734 7/26/05 611.00 WURBS REIMB LIN WURBS/RETIREMENT CELEBRATl202735 7/26/05 97.63 YOUNG REIMB YOUNG M./SUPPLS SUMMER SWIM PR202736 7/26/05 184.67 YOUNG REIMB YOUNG M./SUPPLIES AND SHIPPING 202737 7/26/05 99.11 YOUNG REIMB YOUNG M./MATERIALS AND SUPPLIE;202738 7/26/05 46.08 Total $ 584,909.81 Workers compensation checks 10279 7/20/05 184.11 10280 7/20/05 132.85 10281 7/20/05 750.00 10282 7/20/05 83.94 10283 7/20/05 458.85 10284 7/20/05 2,888.28 10285 7/20/05 165.97 10286 7/20/05 235.26 10287 7/20/05 14.28 10288 7/20/05 370.00 10289 7/20/05 3230 10290' 7/20/05 400.00 5 City of National City WARRANT REGISTER # 04 7/26/05 Payee Description chk no chk date amount Total $ 5,715.84 Grand Total 590,625.65 PAID OUT OF HUD GUARANTEED LOAN FUND ACCT FOR THE CONSTRUCTION OF THE NEW FIRE STATION. CK#2O0140-200143 4 CHECKS $ 5,958.27 6 City of National City WARRANT REGISTER #04 7/26/05 001 GENERAL FUND 109 GAS TAXES FUND 126 FIRE DEPT ACTIVITIES FUND 136 TINY TOT CLASSES FUND 172 TRASH RATE STABILIZATION FUND 222 WOW MOBILE GRANT FY 2000-2001 225 ENGLISH LANGUAGE LITERACY IN 241 NATIONAL CITY LIBRARY STATE GR 242 N. CITY LIBRARY MATCHING FUND 243 PER CAPITA GRANT PROGRAM 246 WINGS GRANT 250 NEW FIRE STATION CONSTRUCTION 254 LEAD -BASED PAINT HAZARD REDUC 276 LITERACY SERVICES YEAR 2 278 AMERICORPS LSTA GRANT II 301 GRANT-C.D.B.G. 302 CDC PAYMENTS 307 PROPOSITION A" FUND 552 TDA 626 FACILITIES MAINT FUND 627 LIABILITY INS. FUND 628 GENERAL SERVICES FUND 629 INFORMATION SYSTEMS MAINTENA 631 TELECOMMUNICATIONS REVOLVI 632 GENERAL ACCOUNTING SERVICES 725 PLANNING 726 ENGINEERING/PUBLIC WORKS T & A TOTAL 247,850.52 5,924.53 204.08 94.80 170.29 32.42 -6.29 4,027.19 27,160.98 181,845.00 50.08 5,958.27 77,077.08 32.63 362.00 20.52 390.57 5,924.52 447.27 794.19 19,018.26 1,194.81 4,526.67 579.23 1,288.53 1,975.00 3,682.50 590,625.65 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. FINANCE DIRECT 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 16TH DAY OF AUGUST 2005. AYES NAYS ABSENT AEETING DATE City of National City, California COUNCIL AGENDA STATEMENT AUGUST 16,, 2005 AGENDA ITEM NO. 17 ITEM TITLE WARRANT REGISTER #05 PREPARED BY Finance EXPLANATION DEPARTMENT City Manager Lin Wurbs 619-336-4240 Ratification of Warrant Register #05 per Government Section Code 37208. ( Environmental Review Financial Statement Not applicable. STAFF RECOMMENDATION N/A Approved By: Fina Director Account No. I recommend ratification of these warrants for a total of $ 1,722,961.86. BOARD / COMMISSION RECOMI:IDATION tineat a ATTACHMENTS ( Listed Below) Resolution No. 1. Warrant Register #05 2. Workers Comp Warrant Register dated 07/27/05 3. Payroll Warrant Register dated 07/27/05 A -too ,0 09, Payee City of National City WARRANT REGISTER # 5 Description 8/2/05 CALIFORNIA COMMERCIAL SEC MOP 45754-MASTER KEY STANDARD SEARS CRAFTSMAN CATALOG EQUIPMENT FOR STATION #34 ACCOUNTEMPS ACCOUNTEMPS ACEDO ACEDO ALPHA PROJECT TEMP SRVCS MARY-JO REBELEZ W/E 07/15/ TEMP SRVCS PATRICK B MORRIS W/E 07/15, REIMB SUN SUMMER PROGRAM 07/21/05 PARK FIELD TRIP REIMB 7/21/05 ACEDO IRlt ALPHA PROJECT FOR THE HOMELESS. PER AUDITOR AND CONTROLLER LAFCO COST FOR FY 2005-2006 BANK OF AMERICA BANK OF AMERICA BDS ENGINEERING INC BOYD C W REED JR CARRIER JOHNSON CARRIER JOHNSON, INC. CITY OF CHULA VISTA CLEAN HARBORS CORPORATE EXPRESS PMT CREDIT CARD CHRGS TRAVEL ARRANGEMNTS FOR MAYOR'S ME CIVIL ENG'G DESIGN SRVCS-PUMP STATIOt' RETIREE HEALTH BENEFITS AUG 2005 RETIREMENT 2000964-S90 AUG'05 REED JR APR 25-MAY 29 2005-NC LIB FF&E SRVCS APR 4-MAY 29 2005 SRVC-NC LIB EXTENTIC CCPA TRAINING CONSORTIUM FY 2005-200( HAZARDOUS HOUSEHOLD WASTE PICK UP; MOP 45704 OFFICE SUPPLIES DEFRATIS RETIREE HEALTH BENEFITS AUG 2005 DEPARTMENT OF TRANSPORTA HIGHWAY LIGHTING MAY 2005 DICERCI-i[O RETIREE HEALTH BENEFITS AUG 2005 DIGITAL NETWORKS GROUP, IN( CONFIGURATION, LABOR, INSTALL, ON -SIT DOKKEN ENGINEERING AGREEMENT FOR CAPACITY IMPROVEMEI\ chk no chk date amount 200144 8/2/05 897.35 200145 8/2/05 1,194.31 202739 8/2/05 1,480.00 202740 8/2/05 1,358.40 202741 8/2/05 158.35 202742 8/2/05 149.25 202743 8/2/05 2,930.32 202744 8/2/05 11,491.00 202745 8/2/05 2,118.91 202746 8/2/05 417.60 202747 8/2/05 6,581.50 202748 8/2/05 145.00 202749 8/2/05 981.51 202750 8/2/05 6,819.07 202751 8/2/05 10,900.00 202752 8/2/05 2,450.00 202753 8/2/05 130.00 202754 8/2/05 426.99 202755 8/2/05 120.00 202756 8/2/05 4,206.02 202757 8/2/05 70.00 202758 8/2/05 21,013.64 202759 8/2/05 5,279.53 1 DOUGLAS E. BARNHART, INC JUN 30 2005 SRVCS-CONSTRCTN MGMT LIB ENVIRONMENTAL BUSINESS EWERT, PHILLIP FIRE ETC GW WILLIAMS CO HAMILTON JUN 1-30, 2005 SRVCS-2100 HOOVER AVE ,N( RETIREE HEALTH BENEFITS AUG 2005 STRUCTURE FIRE HELMET: (1) WHITE, (1) REFUND OVERCHRGED FOR SEWER CHRGS RETIREE HEALTH BENEFITS AUG 2005 HANSON AGGREGATES PACIFIC SHEET MIX ASPHALT @ $31.25/TON. HARLAN HARRIS & ASSOCIATES HERNANDEZ HOLIDAY INN EXPRESS HOLLOWAY, WILLIAM HRADECKY INSIGHT PUBLIC SECTOR JAYNES CORPORATION ADV MEALS/MILEAGE-HARLAN T&A#902 TRACK MAP 2004 900-910 MANCHI FIREFIGHTER CAREER DAY REFRESHMNTS ADV LODGING/MICHAEL HARLAN RETIREE HEALTH BENEFITS AUG 2005 125 PLAN REIMBURSEMENT/HRADECKY INV#110232636 - PRINTER ESCROW RETENTION ACCT#2010160619 JAYNES CORPORATION OF AMH JUNE 30 2005 SRVCS-CONSTRCTN NC LIBRi KIMBLE LASER SAVER INC LONG'S DRUG STORES MATIENZO MCCABE MYERS NATIONAL CITY POA RETIREE HEALTH BENEFITS AUG 2005 MOP 45725 OFFICE SUPPLIES/ CARTRIDGES MOP 45727 FIRST AID KIT SUPPLIES RETIREE HEALTH BENEFITS AUG 2005 RETIREE HEALTH BENEFITS AUG 2005 RETIREE HEALTH BENEFITS AUG 2005 RETIREMENT DINNER FOR PAW-RON MOR NC SENIOR NUTRITION PROGRA 7/16/05 NEIGHBORHOOD COUNCIL QRTLY E NFPA FULFILLMENT CENTER FIRE CODE SUBSCRIPTION SRVC NFPA FULFILLMENT CENTER MEMBERSHIP IN NFPA/CHIEF JUNIEL NOSAL, WILLIAM A. OFFICE TEAM PERVO TRAFFIC CENTER POTTER RETIREE HEALTH BENEFITS AUG 2005 TEMP SRVCS OLSON JOSEPH W/E 7/08/05 MOP 63846 PAINT SUPPLIES RETIREE HEALTH BENEFITS AUG 2005 PRUDENTIAL OVERALL SUPPLY MOP 45742 MOPS RANDALL CONSTRUCTION JUN 24, 2005 SRVCS-REMODEL CITY HALL 2 202 760 8/2/05 18,262.00 202761 8/2/05 1,351.98 202762 8/2/05 160.00 202763 8/2/05 618.49 202764 8/2/05 35,896.56 202765 8/2/05 100.00 202766 8/2/05 489.08 202767 8/2/05 142.88 202768 8/2/05 688.08 202769 8/2/05 34.22 202770 8/2/05 278.46 202771 8/2/05 150.00 202772 8/2/05 134.82 202773 8/2/05 3,066.35 202774 8/2/05 28,893.00 202775 8/2/05 548,967.00 202776 8/2/05 300.00 202777 8/2/05 295.94 202778 8/2/05 472.18 202779 8/2/05 100.00 202780 8/2/05 280.00 202781 8/2/05 140.00 202782 8/2/05 45.00 202783 8/2/05 440.22 202784 8/2/05 625.50 202785 8/2/05 135.00 202786 8/2/05 921.86 202787 8/2/05 767.36 202788 8/2/05 172.35 202789 8/2/05 150.00 202790 8/2/05 115.08 202791 8/2/05 1,355.45 2 RAY ROBERT HALF LEGAL ROBERT HALF LEGAL ROE RUIZ SAN DIEGO GAS & ELECTRIC SAN DIEGO GAS & ELECTRIC SAN DIEGO GAS & ELECTRIC SAN DIEGO GAS & ELECTRIC SAN DIEGO GAS & ELECTRIC RETIREE HEALTH BENEFITS AUG 2005 TEMP SRVCS MONTOYA SUMMER W/E 7/15/ TEMP SRVCS MONTOYA SUMMER W/E 7/08/ 125 PLAN REIMBURSEMENT/ROE RETIREE HEALTH BENEFITS AUG 2005 ELECTRIC BILL/STREET ACCT410093014384 ELECTRIC BILL/FACILITIES #29728110755 ELECTRIC BILL/STREET ACCT#98917081416 ELECTRIC BILL/FACILITIES #1001911839 ELECTRIC BILL./WASTEWATER #1009264681 SAN DIEGO NEIGHBORHOOD NE ADVERTISING DBE 7/15/05 SELTZER CAPLAN MCMAHON V. LIABILITY CLAIM COSTS 6/30/05- SHORT, CRAIG SUN BADGE COMPANY INC. TETRA TECH, INC. THE CENTER-LATIN PRIDE THE STAR NEWS WHITAKER BROTHERS YOUNG ZIETLOW, DAVID CITY OF CHIJLA VISTA DOCUMENT SERVICES, ISF SKILL PATH SEMINARS AIRGAS WEST RETIREE HEALTH BENEFITS AUG 2005 MOP 45761 PY POLICE BADGES T&A #904 2300 BLK 4TH STREET 5/27/05 VENDOR APPLICATION @ 2005 LATIN PRID] LEGAL ADVERTISING OF AUGUST 01, 2005 SERVICE AGREEMENT RENEWAL/TIME STA SOAK CITY ADMISSION/SUMMER PROG RE] RETIREE HEALTH BENEFITS AUG 2005 ANIMAL SHELTER SRVCS JUNE 2005 MAY 2005 MAIL SERVICES WORKSHOP FOR MANAGING PEOPLE/KIRK] MATERIAL/SUPPLIES AMERICAN CANCER SOCIETY EVENT FEE AT SYSTEMS WEST INC BUCK PETROLEUM CO C1NTAS CORPORATION #694 DIXIELINE LUMBER CO GIBBS JANKOVICH COMPANY JULY 2005 SERVICES OIL SAMPLE BOTTLES MAINT LAUNDRY SERVICE SHOP SUPPLIES STEEL TOE BOOTS DIESEL FUEL MC DONALD TRANSIT ASSOC. ]r MANAGEMENT FEE - JULY '05 202792 8/2/05 190.00 202793 8/2/05 784.75 202794 8/2/05 430.00 202795 8/2/05 90.00 202796 8/2/05 310.00 202797 8/2/05 26,775.26 202798 8/2/05 10,086.72 202799 8/2/05 3,426.05 202800 8/2/05 944.93 202801 8/2/05 107.87 202802 8/2/05 50.63 202803 8/2/05 97.50 202804 8/2/05 300.00 202805 8/2/05 223.68 202806 8/2/05 870.00 202807 8/2/05 100.00 202808 8/2/05 187.06 202809 8/2/05 345.45 202810 8/2/05 290.75 202811 8/2/05 150.00 202812 8/2/05 8,255.31 202813 8/2/05 5,424.87 202814 8/2/05 399.00 202815 8/2/05 331.99 202816 8/2/05 500.00 202817 8/2/05 374.45 202818 8/2/05 1,225.12 202819 8/2/05 311.48 202820 8/2/05 234.32 202821 8/2/05 77.56 202822 8/2/05 15,609.87 202823 8/2/05 12,776.40 3 PRINCIPAL FINANCIAL GROUP 401K PPE 07/23/05 202824 8/2/05 1,301.95 SBC PHONE 07/05/05 - 08/04/05 202825 8/2/05 302.18 SMART & FINAL COFFEE SUPPLIES 202826 8/2/05 121.70 SOS ROOTER INC. REPAIR LEAK 202827 8/2/05 2,640.00 SOUTH COAST MEDICAL CLINIC PRE -EMPLOYMENT PHYSICAL 202828 8/2/05 72.00 WEBSTER AIRFARE FOR APTA CONF 202829 8/2/05 365.25 Total 822,951.71 Workers compensation checks 10291 7/27/05 159.75 10292 7/27/05 11.56 10293 7/27/05 349.18 10294 7/27/05 128.86 10295 7/27/05 300.20 10296 7/27/05 138.46 10297 7/27/05 110.50 10298 7/27/05 110.50 10299 7/27/05 485.78 10300 7/27/05 110.50 10301 7/27/05 151.91 10302 7/27/05 87.04 10303 7/27/05 211.48 10304 7/27/05 265.04 10305 7/27/05 60.98 10306 7/27/05 138.38 10307 7/27/05 58.12 10308 7/27/05 58.12 10309 7/27/05 58.12 10310 7/27/05 47.60 10311 7/27/05 85.93 10312 7/27/05 266.86 10313 7/27/05 256.91 4 PAYROLL Pay period Start Date End Date Check Date 258 7/5/05 7/18/05 Total Total 10314 7/27/05 205.33 10315 7/27/05 37.98 10316 7/27/05 313.68 10317 7/27/05 72.25 10318 7/27/05 176.29 10319 7/27/05 58.11 10320 7/27/05 94.22 10321 7/27/05 400.00 10322 7/27/05 12.92 10323 7/27/05 8.84 10324 7/27/05 1,192.40 10325 7/27/05 370.00 10326 7/27/05 320.00 10327 7/27/05 8.84 10328 7/27/05 761.05 10329 7/27/05 135.14 10330 7/27/05 2,505.41 10331 7/27/05 12.92 10332 7/27/05 6.12 10,343.28 833,294.99 7/27/05 889,666.87 GRAND TOTAL 1,722,961.86 TRANSIT WARRANTS CK#202815-202829 15 CHECKS $ 36,244.27 PAID OUT OF HUD GUARANTEED LOAN FUND ACCT FOR THE CONSTRUCTION OF THE NEW FIRE STATION. CK#200144-200145 2 CHECKS $ 2,091.66 5 City of National City Warrant Register # 05 8/2/05 001 GENERAL FUND 684,441.15 104 LIBRARY FUND 33,579.69 105 PARKS MAINTENANCE FUND 18,473.39 109 GAS TAXES FUND 3,982.07 111 P.O.S.T. FUND 699.80 125 SEWER SERVICE FUND 61,302.81 154 STATE PUBLIC LIBRARY FUND 1,715.13 171 LIBRARY SCHOOL DISTRICT CNTRCT 697.97 172 TRASH RATE STABILIZATION FUND 4,745.38 173 NATIONAL SCHOOL DIST CONTRACT 0.00 174 SWEETWATER SCHOOL DIST CONTRAC 0.00 188 GRANT - HIDTA 2,066.18 191 STOP PROJECT 1,571.42 196 CAPITAL PROJECT RESERVE 1,351.98 211 SECURITY AND ALARM REGULATION FUND 1,283.33 212 PERSONNEL COMPENSATION FUND 15,555.27 222 WOW MOBILE GRANT FY 2000-2001 3,418.98 225 ENGLISH LANGUAGE LITERACY INCENTIVE ELLI 0.00 230 ABANDONED VEHICLE ABATEMENT GRANT 3,117.12 241 NATIONAL CITY LIBRARY STATE GRANT 414,505.32 242 N. CITY LIBRARY MATCHING FUND 223,195.19 246 WINGS GRANT 59,955.48 250 NEW FIRE STATION CONSTRUCTION 2,091.66 254 LEAD -BASED PAINT HAZARD REDUCTION GRANT 8,442.01 273 CBAG-MAJOR MEXICAN TRAFFICKERS 5,083.93 274 LITERACY INITIATIVE XIII 1,462.55 275 EASY VOTER GUIDE GRANT 0.00 276 LITERACY SERVICES YEAR 2 356.52 277 NC PUBLIC LIBRARY DONATIONS FUND 0.00 278 AMERICORPS LSTA GRANT II 0.00 279 PRIME TIME FAMILY READING TIME 0.00 280 AMERICORPS/CNCS YEAR 2 GRANT 3,173.69 283 INST OF MUSEUM & LIBRARY SVCS GRANT 0.00 286 LITERACY SERVICES YEAR 3 574.22 301 GRANT-C.D.B.G. 6,990.30 302 CDC PAYMENTS 15,987.09 307 PROPOSITION A" FUND 11,140.67 348 STATE GRANT 0.00 552 TDA 36,244.27 626 FACILITIES MAINT FUND 28,705.53 627 LIABILITY INS. FUND 14,056.63 628 GENERAL SERVICES FUND 5,055.56 629 INFORMATION SYSTEMS MAINTENANC 4,217.82 630 OFFICE EQUIPMENT DEPRECIATION 3,816.00 631 TELECOMMUNICATIONS REVOLVING 2,657.01 632 GENERAL ACCOUNTING SERVICES 23,459.90 643 MOTOR VEHICLE SVC FUND 11,899.76 726 ENGINEERING/PUBLICE WORKS T & A DEPOSITS 1,889.08 Total 1,722,961.86 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 16TH DAY OF AUGUST 2005. AYES NAYS ABSENT City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE August 16, 2005 AGENDA ITEM NO. 18 ITEM TITLE EXPLANATION The National City Collaborative is requesting use of the North Room and Kitchen of the Martin Luther King, Jr. Community Center for their "Neighborhood Resource Fair" on Thursday, September 22, 2005 from 11:00 a.m. until 8:00 p.m. Approximately 60 participant agencies and 700 attendees from the community are expected to attend this free event throughout the day. The organization last used the Community Center in 2003 for an "Educational Theatre Play". Request to Use the Martin Luther King, Jr. Community Center by the National City Collaborative and Waiver of Fees for their "Neighborhood Resource Fair" on September 22,2005 PREPARED BY Leslie Deese 4DEPARTMENT Community Services Phone: (619) 336-4242 Costs: Building: $791.55 Kitchen $ 80.00 Custodial: $268.08 Total $1 139.63 Waiver of fees is also being requested. This is an acceptable category of use according to the City Council adopted "Rules and Regulations for the Use of the Martin Luther King, Jr. Community Center." However, it would take the approval of the City Council to waive the fees. Environmental Review X N/A Financial Statement Loss of $1,139.63 if waiver of fees is approved. >STAFF RECOMMENDATION Account No. Staff recommends the use of the Community Center and waiver of all fees due to the nature of the event and the benefit to the community. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) Resolution No. 1. Letter from National City Collaborative dated July 22, 2005. 2. Application for use of the Martin Luther King, Jr. Community Center A-200 (9/HO) National City Collaborative July 22, 2005 City of National City Community Services Department Attn: Ms. Leslie A. Deese, Director 140 East 12th Street, Suite A National City, CA 91950 Dear Ms. Deese: 2325 Euclid Avenue National City, CA 91950 (619) 336-8659 Office (619) 336-8646 Fax Promoting community and family well being through partnerships, The National City Collaborative (NCC) requests your sponsorship and a waiver of all use fees associated with the Martin Luther King, Jr. Center. NCC is in the process of organizing a Neighborhood aesource Fair to benefit the residents of National City. This event is planned for September 22;r20`0'S, from 2:00 to 8:00 p.m. with an additional 5 hours for set-up and teardown. Our intent is to bring in approximately 60 participant agencies that can offer readily accessible, no -cost, services and`- information to our local residents. In conjunction with our community partners, we will advertise this event very heavily within the community. Based on our experience and other events of this nature, we anticipate +/-700 attendees from the community. Plenty of prizes will be offered to help promote this event. The fiscal agent for National City Collaborative is National School District (NSD), and our contracted employing agency is South Bay Community Services, a 501(3)c non-profit agency. I hope you will give this request serious consideration and agree to partner with us for this worthwhile event. If you have any questions, please call me at (619) 336-8643. Sincerely, ergi R. Rosas, M.S.H.R. Exedutive Director SRR/csr Enclosures: Application for Temporary Use Permit Certificate of Insurance (NSD) 501(3)c non-profit agency - IRS Letter (SECS) Partner Agencies Dept of Health Services, Sweetwater Union Nigh School District, San Diego Area Agency on Aging,. National School District, National City Public Library, MAAC Project, Urban Centers Academic Net Working, Council of Philippine American Organization, Consumer Credit Counseling, National City Chamber of Commerce, National City Community Development Commission, City of National City, Mexican Cultural Institute, California State Assembly,-79th District, Central for Employment Training, National City Fire Dept, National City Police Dept, South Bay Community Services, Tulungan Center,Supervisor Greg Cox's Office, City of National City, Accion San Diego, South Bay Youth & Family Services, California State Assembly, 79th District, Mexican Cultural institute of San Diego, Central for Employment Training, Dept of Social Services, City of National City Dept of Parks & Recreation, Children's Hospital, Operation Samahan Hlth Clinic, Dept of Probation, County of San Diego, South Bay Family YMCA, Paradise Valley Hospital, U.S. Navy National City Collaborative & Family Resource Centers Neighborhood Resource Fair — 2005 INTENT TO PARTICIPATE DATE/TIME: Thursday, September 22, 2005 - 2:00 to 6:00 p.m. LOCATION: Martin Luther King Jr. Center 140 East 126 Street, National City, CA 91950 DR Ap ,, Hear ye, hear ye!!! Indoor booths (1 Table-6 ft. Sr. 2 Chairs) are available to interested participant agencies that offer readily accessible, no/low cost, services and information to our local residents. In exchange, a contribution toward an event -wide raffle is expected; this can be in the form of a $25.00 donation, gift certificates, or other prizes of equal or greater value. This intent foiin is required in order to participate in the NCCFRC NEIGHBORHOOD RESOURCE FAIR 2005. If your agency wishes to participate in this event, please complete the bottom portion of this form and return to Carole Ribley at National City Collaborative by one of the following methods. MAIL: 2325 Euclid Avenue, National City, CA 91950 FAX: 619/336-8646. Space is limited, so please submit this Intent to Participate ASAP, or no later than August 17, 2005!!! If you have any questions, feel free to contact Sergio Rosas at 619/336-8659. YES, MY AGENCY WILL PARTICIPA LE IN THE NEIGHBORHOOD RESOURCE FAIR - 2005. 0 Please include me on your planning committee. NO, I REGRET THAT MY AGENCY IS NOT ABLE TO PARTICIPATE AT THIS TIME. Agency Name: Address: Contact Person: Title: Phone: Fax: Signature: Please read and sign this important statement: "In consideration of those Fair -goers who cannot arrive to the Fair until after 5: 00 p.m., I commit, on behalf of my agency, to keep our booth open until 6:00 p.m." Date: APPLICATION FOR USE OF THE MARTIN LUTHER KING, JR. COMMUNITY CENTER TO ALL APPLICANTS: It is strongly recommended that the applicant requesting use of the facility attend the City Council meeting when the items going to be discussed in order to answer any questions posed by the City Council. Please refer to the attached copy of "Rules and Regulations". Name of Organization: Business Address: Name of Applicant: Address: Telephone Number: NATIONAL CITY COLLABORATIVE / NATIONAL SCHOOL DISTRICT 2325 EUCLID AVENUE, NATIONAL CITY, CA 91950 SERGIO ROSAS, DIRECTOR (CONTACT: CAROLE RIBLEY) SAME AS ABOVE day: (619) 336-8638 cell: (619) 818-3012 Type of Function: COMMUNITY RESOURCE FAIR Date Requested: SEPTEMBER 22, 2005 Decorating Time: 11:00 a.m. to 2:00 p.m. Function Time: 2:00 p.m. to 6:00 p.m. Clean up Time: 6:00 a.m. to 8:00 p.m. Use of Kitchen: X Yes If yes, Time: 11:00 a.m. to 7:00 p.m. Number of Participants: +/- 700 Will Admission be charged? NO If yes, Amount $ N/A Will this be a fund raising event? NO Will alcohol be served? NO If yes, ABC Permit Submitted? N/A Certificate of Insurance attached? ON FILE (UNDER NATIONAL SCHOOL DISTRICT)** Special configuration of tables or chairs required? YES If yes, attach sketch. Special equipment required? YES If yes, attach list. Copy of Rules & Regulations provided? Initials Certificate of Insurance attached? ** How many. times in the last two years have you used the Community Center? 0 If applicable, how much did you pay for building and/or custodial fees? $ N/A I CERTIFY THAT I HAVE RECEIVED A COPY OF THE RULES AND REGULATIONS FOR THE MARTIN LUTHER KING, JR. COMMUNITY CENTER, AND I AGREE FOR MY ORGANIZATION TO CONFORM TO ALL OF ITS PROVISIONS. Applicant recognizes and understands that use of the City's facility may create a possessory interest subject to property taxation and that Applicant may be subject to the payment of property taxes levied on such interest. Applicant further agrees to pay any and all property taxes, if any assessed during the use of the City's facility pursuant to Sections 107 and 107.6 of the Revenue and Taxation Code against Applicant's possessory interest in the City's facility. JULY 22, 2005 J Signature of Applicant Date rev.02/03 CITY OF NATIONAL CITY HOLD HARMLESS AND INDEMNIFICATION AGREEMENT FOR USE OF PUBLIC PROPERTY 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 NATIONAL CITY COLLABORATIVE / NATIONAL SCHOOL DISTRICT Person in charge of activity SERGIO ROSAS, NCC — EXECUTIVE DIRECTOR Address: 2325.EUCLID AVENUE, NATIONAL CITY, CA 91950 Telephone: (619) 336-8659 City facilities and/or property requested: MARTIN LUTHER KING, JR. COMMUNITY CENTER Date(s) of use: THURSDAY, SEPTEMBER 22, 2005 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 damages 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 permit holder or its agents, employees or contractors. Signature' of Applicant EXECUTIVE DIRECTOR Official Title Certificate of Insurance Approved by Name and Title JULY 22, 2005 Date rev. 02/03 Internal Revenue Servit e Date: January 28, 2002 South Bay Community S 3rvices 315 Fourth Avenue, Suit: E Chula Vista, CA 91910 Dear Sir or Madam: Department of the Treasury P. O. Box 2508 Cincinnati, OH 45201 Person to Contact Dee Anna Jermon 31-03084 Customer Service Specialist Toll Free Telephone Number: sec .,n to Sao p.m, MIT 877-829-5500 Fix Number. 513-263-3755 Federal Identification Number: 95-2693142 This is in response to year letter dated November 2, 2001, requesting a copy of your organization's -determination letter. Thi: j letter will take the place of the copy you requested, Our records indicate that a determination letter issued in September 1972 granted your organization exemption from federal U icome tax under section 501(c)(3) of the Internal Revenue Code. That letter is still In effect. Based on information sul rsequently submitted, we classified your organization as one that is not a private foundation within the ma fining of section 509(a) of the Code because ft Is an organization described In sections 509(a)(1) and 1''0(b)(1)(A)(vO. This classification was bi sad on the assumption that your organization's operations would continue as stated In the application. If your organization's sources of support, or its character, method of operations, or purposes have changed, please let us know so we can consider the effect of the change on the exempt status and foundation stb tus of your organisation. Your organization is requ red to fie Form 990, Return of Organization Exempt from Income Tare, only If Its gross receipts each year are normally more than $25,000. If a return Is required, it must be flied by the 15th day of the fifth month eels- the end of the organization's annual accounting period. The law imposes a penalty of $20 a day, up ;o a maximum of $10,000, when a return is filed late, unless there is reasonable cause for the delay, Alt.exempt organizations (unless specifically excluded) are liable for taxes under the Federal Insurance Contributions Act (social recurity taxes) on remuneration of $100 or more paid to each employee during a calendar year. Your orgy nization Is not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA)_ 0 rganizations that are nc Code. However, these of • Donors may deduct cone legacies, devises, transfe `ift tax purposes if they n t private foundations are not subject to the excise taxes under Chapter 42 of the ganizations are not automatically exempt from other federal excise taxes. buttons to your organization as provided In section 170 of the Code. Bequests, rs, or gifts to your organization or for its use are deductible for federal estate and feet the applicable provisions of sections 2055, 2106, and 2522 of the Code. FROM :NATIONAL CITY COLLABORATIVE FRX NO. :6193368646 Rug. 05 2005 12:23PM P2 ACORD., CERTIFICATEOF `LIABILITY INSURANCE Nye pormsorayrn MAW John Burnham Insurance Svcs 15 CA lJc DOOfT53 ! 7S0 B SL, Ii2400 'n Dlego, CA 02101 .9 2314OD0 • THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIa CERTIFICATE DOES,NOT AMEND, EXTEND OR ALTER; ME COVERAGE AFFORDED BY THE p uciE! BELOW. INSURERS AFFORDING COVERAGE NAXC t INM,MeD. -• San Dlego County Schoo s/JPA NNlonal School District 1500 "N" Avenue National Clty, CA 01051 ./- RNEURIPIA: Ins Co Stan of PAUAmWINS --19420 mamma Issued With AmWINS Ins parmisslon INSURER D. uRne e THE PDUCIES OF INSURANCE LISTED Mew HAVE BEEN ISSUED TO THE INSURED NAMED ASOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING , ANY REQUIREMENT. TERM OR CONDm0N OP ANY CONTRACT OR OTHER OOcUME NT WATH RESPECT TO WHICH THIS CERTIFICATE MAY SE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED SYTHE POLICIES DESCRIBED HERON IS SUBJECT TO all THETERfMS, EXCLUSIONS AND CONDITIONS OF SUCH POUCHES. AGGREGATE UMITS MOWN MAY HAVE BEEN REDUCED SY PAS) CLAIMS, - TYPE OF IMMNIAl1EE A OEINRAL LMMMDY X COMMERCIAL GENERAL LIAsonY I CLAIMS MADE D OCCUR OWL AOOREGnT£ LJMfr APPI.$ PER TLeouc! n Amami* LMMLTY ANY AUTO ALL OWNED AUTOS sCliovumAVI'O/ HIRED WIDE NON•OWIIDAUTOS SARNOE UAaMITY RANY ALTO EXGWNLMR[UA LAMUTY j OCCUR Q CLMMM MACE DEOUCTNLE RE'TESTRos S EMPLOYERS' MPLOwolosssERS nGN AND RIET R�TTEAIENT]fECITIYE N e eSvu HI ire,, OTHER POLICY MUMMA 42032612 Limit Is the dllhnnco beIWwen SIR and 61,000,600 POLIO EFPROTINT DAVE of In D7/01105 REFS RI AIi ^. h u 0 PARKS & NATION ECREATiON L CITY, CA • PaNtMgege 0710110E �IISCRMTTON OF OPERATION/ l LOCATIONS / VEHICLES / EXCLUSIONS AWED EY ENDORSEMENT I SPECIAL nu:me0 $ Rs: Use of Fuel Pumps. MIRE EACH OcwroIEtIQ 11.000.000 / MED EXP V„r an pawn) $ PERSONALS ACM INJURY rWIRRAL AOOREAATE 1 1 PRODUCTS. COUR/CP AOE 13,000,000 corneas NINmLE oar as accident) 1 PArMr) 1 BODILY 1 PROPERTY DAMON EENERTO Arr AUTO ONLY • EA ACCIDENT 1 $ AAUVOCM. EACH OCCURRENCE EA ACC AGE 1 i $ AOOREOATE I S 1 1 ITWa1 1 EL..EACM ACCIDENT 1 EL DISEASE • 1A EMPLOYES f E.L WEAK - POLICY LIMN S r ERTIFICATE HOLDER City of National City 1243 National Clty Boulevard National City, CA 91950 ACORD 2b (2001/0101 of 2 #M31115 CANCELLATION TAp, jQQYdorlea for Nen.PAymant t>tf Premtum SHOULD ANT Or THE A/DYE DCOORISED l DUC$NS OE CANCELLED UEPORE THE EXPIRATHRI DATE THEREOF. THE ISSUING INEUNM MU. ENDEAVOR TO MAIL AO DAYS WRITTEN NOTICE TO THE CENTIPICATE HOLDER NAMED TO THE I.T.SFNUT FARURS TO DO S0 /HALL IMPOSE NO Oau0ATION OR UAIIUTY OP ANT HOED UPON THE INSURER, IT/ AGENTS OR REPRESENTATIVES. AU NORLISD RUPRNENT TTVI TTC 0 ACORD CORPORATION 19111 .MEETING DATE City of National City, California COUNCIL AGENDA STATEMENT August 16, 2005 AGENDA ITEM NO. 19 ITEM TITLE PREPARED BY TEMPORARY USE PERMIT — Common Man Wealth Industries/Kids Say Nope To Dope -- Nope to Dope Park Rally Saturday, August 27, 2005, 11 a.m. to 4 p.m. at Las Palmas Park Joe Olson, 336-4210 DEPARTMENT Building & Safety EXT. EXPLANATION This TUP was approved on July 19, 2005, however the applicant has requested to change the date of the event. 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, August 27, 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. (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 new date for the event. 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 FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ x ] COMMUNITY SERVICE POLICE YES [ x ] NO [ ] SEE CONDITIONS [ ] ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ x ] YES [ x ] NO [ ] SEE CONDITIONS [ x CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ x ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ x ] SPONSORING ORGANIZATION: Kids Say Nope To Dope EVENT: Kids Say Nope To Dope Park Rally DATE OF EVENT: Saturday, August 27, 2005 TIME OF EVENT: 1:00 p.m. to 4:00 p.m. APPROVALS: PLANNING FIRE YES [ x ] NO [ ] SEE CONDITIONS [ ] YES [ x ] NO [ ] SEE CONDITIONS [ x PUBLIC WORKS/PARKS YES [ x ] NO [ ] SEE CONDITIONS [ x ] 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 connections 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 1st 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) City of National City Building & Safety Department 336-4210 June 24, 2005 TEMPORARY USE PERMIT APPLICATION EVENT: Nope to Dope Park Rally EVENT DA 1'h: July 30, 2005 TO: PLANNING I ENGINES NG (2) ✓ / COMMUNITY SERVICES V POLICE / RISK Mi.NAGER FINANCE �/ FIRE / CITY ATTORNEY-' / ENGINEERING (1) ✓ PUBLIC WORKS / DUE DATE: JULY 1, 2005 PLEASE REVIEW THE ATTACHED TEMPORARY USE PERMIT APPLICATION AND RETURN YOUR WRITTEN COMMENTS AND/OR APPROVAL TO THE BUILDING AND SAFETY DEPARTMENT BY THE ABOVE DATE. THANK YOU, Joe Olson Building and Safety Department Type of Event: Public Concert _ Parade _ Motion Picture _ Fair _ Demonstration _ Grand Opening Festival Circus (Other Community Event Block Party Event Title: N QP' — i [ c — Pcor k eq./ ( Event Location: it ( S Pa bvI cN. S I Event Date(s): From slAhy_143thr3G Total Anticipated Attendance: /S Month/Day/Year ( Participants) Actual Event Hours: 1 f am/pm to 'OCam ( Spectators) Setup/assembly/construction Date: 1%/A /y Start time: 9 4/%'• Pleasedescribethe scope of your setup/assembly work (specific details): b/42._S Dismantle Date:ILA jahompletion Time: 30 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: Chief Officer of Organization (Name) Applicant (Name): L Address: 13 _ For Profit Not -for -Profit v� Daytime Phone: ag'.72[/ 6Yening Phone: () --�f e—Fax: ( ) Contact Person "on site" day of the event: L Pager/Cellula(9/7) 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 NO If YES, please explain the purpose and provide amount(s): $ ZSZ Estimated Gross Receipts including ticket, product and sponsorship sales from this event. 0.6. 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. n e".(cry. -4S c k. dr c). 3 peUeAo - $-PLY"e5' 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 1L 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 JNO 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 JNO 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: Number of tent/canopies 9 Sizes NOTE: A separate Fire Department permit is uire toras 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 II CC Please describe how food will be served at the event: (TpT 4 O Uf 5 pD o aA 6_ t..,. 01.• c m .) Po ' Fc ruck Par4-0, We_ fir; US 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: 3 Please describe your procedures for bpth Crowd Control and Internal Security: baSea d I 3 ± Gk.A.) ci ec/LCc3 �- P.s1^5c,ADS .Att P A. , �-- ( ; f L S rs. 1 e—- P VO t,1cQ. avuL SSC_L)!r ,4ye Co CaN^AJ S 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 JNO 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 whatar�� rangement you have madeforFirst Aid Staffing and Eq ipment. / 4 A k, s Pleale describe your A cessibikty Plan for acc ss at yo event b individuals it disabilities: +L P f * S c� I,t� a,r& cam,` Please provide a detailed description of your PA KING plan: �� t'C M9 r (6 4--� 03-(--L. u € 6 f€ 3PcceS Please describe you plan for DISABLED PARKING: CA-5 C> t-Ls--- 5 PrA C12-5 PA---0J- 4-LUZ- PIClY hekS • • Please describe your plans to notify all residents, businesses and churches impacted by the event: / ` Ueev, t.Ill CC--Lr a 1 w 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 Band A)erS4 tip -��e.t1-( Type of Music: (. L/ picky p-y 7 YES _ NO Will sound amplification be used? If YES, please indicate: Start time: 1l r r � � /pm Finish Time 3 _ am/'�_J 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 1 NO Fireworks, rockets, or other pyrotechnics? If YES, please describe: YES NO Any signs, banners, decorations, special lighting? If YES, please describe: /t) A) eY S ( .J c5)__90._„) , 7A4-- ? GAS' to 9on 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 • • i• 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 O.LA,ocink dg S,y/0.0Q e-� .Qp�-Person in Charge of Activity 6p, (A) Ai Address f Z Telephone/t) Y72/ 5(t—Date(s) of Use J �,� ty 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 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 For Office Use Only Certificate of Insurance Approved 6/2 Date Date 7 • • • • REUESTf�R A' WAIVER'.OEFEES. 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 orgay ization C-O AJ f✓..cXAJ tASo 4fri b r a I•S-� ccyK .O,g c ck.y f s Type of Organization Pcx:Yek: i _.Ll.utrcLt (Service Club, Church, Social Service Agency, etc.) 4 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) Os -- ate 9 AIEETING DATE City of National City, California COUNCIL AGENDA STATEMENT August 16, 2005 AGENDA ITEM NO. 20 "ITEM TITLE TEMPORARY USE PERMIT — St. Mary's Catholic Church Fall Festival/Fund Raiser October 9, 2005 at 8 St. & E, National City, CA 91950 PREPARED BY Joe Olson, 336-4210 DEPARTMENT Building & Safety EXT. EXPLANATION This is a request from St. Mary's Catholic Church to conduct the St. Marys' Fall Festival Annual Fund Raiser at the Parish Grounds at 8th & E on Sunday, October 9, 2005 from 10 a.m. to 6:30 p.m. This event will be dismantled on Monday, October 10, by 2 p.m. This event will include 20 assorted booths, including food booths and a dining area. A D.J. will be present, as will dance groups. Sound amplification will be used between 11:00 a.m. and 5:00 p.m. J 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 Approve the Application for a Tefnporary Use Permit subject to compliance with all Approved By: Finance Director Account No. 5, 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: St. Mary's Catholic Church EVENT: St. Mary's Fall Festival/Annual Fund Raiser DATE OF EVENT: Sunday, October 9, 2005 TIME OF EVENT: 7 a.m. to 6:30 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. Maintain Fire Department access at all times. 2. Tents having an area in excess of 200 square feet and/or canopies in excess of 400 square feet or multiple tents and/or canopies placed together equaling or greater than the above states areas, are to be used, they shall be flame-retardant treated with an approved State Fire Marshal seal attached. A permit from the Fire Department must be obtained. Permit fees are $349.00. Fees can only be waived by the City Council. 3. 2A:10BC fire extinguishers are required. Fire extinguisher locations to be plainly marked, and not to exceed a travel distance of seventy-five (75) feet. 4. 40-B:C dry chemical fire extinguishers shall be provided where deep -fat fryers are used. 2A:10BC fire extinguishers are required in each cooking booth. 5. All canopies used in cooking areas are to be flame-retardant treated, with an approved State Fire Marshal seal attached. 6. Provide metal cans with leads and label "HOT COALS ONLY" for used charcoal disposal. POLICE (619) 336-4400\ Number and availability of reserves and senior volunteer patrol to be determined by Sgt. Bishop (traffic) and/or Sgt. Strasen (community services). FINANCE (619) 336-4330 1. A Business License is required IF monies are solicited, admission fee is charged, or if food, beverages and merchandise are 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 under 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 & Recovery Division of the Finance Department two weeks prior to the event for verification of business licenses. 3. If any of the vendors or organizations are registered not -for -profit, there will be no charge for a business license. However, a business license certificate must be obtained from 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.) 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. (THE SAN DIEGO COUNTY ENVIRONMENTAL HEALTH DEPARTMENT, NATIONAL CITY AND SAN DIEGO TRANSIT HAVE BEEN NOTIFIED VIA FAX) Type of Event: / _ V Public Concert Fair Festival _ Community Event _ Parade _ Demonstration _ Circus Block Party _ Motion Picture _ Grand Opening _ Other Event Title: SI' Vinci rC,S t t Vat, A Nlrhv. CJ, Ll<l L tR G 15l Utct Event LocationRQti„rk�� ,Q.kCO r jar oa � } L 5���e�S• Event Date(s): From Lb �{ O� to to a O Sr Total Anticipated Attendance:..WA tA. t) tc) t1 Month/Day/Year ( L- Participants) (✓ Spectators) Actual Event Hours: 1rr 'pm to t . 3o a • Setup/assembly/construction Date: 16. (Q . b< Start time: Q l blrvi Please describe the scope of your setup/assembly work (specific details): OL_ SQ\M IO t. ooAS / )? Cct \x 0 k,5 CAa tic i_. (1 -P Ct_ Dismantle Date: p 10 .1)s Completion Time: lb() a 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 OrganizationGt' i''1c.CcAS ' U (c1‘ /For Profit Not -for -Profit Chief Officer of Organization (Name)C(Q U �L(S I�,(�cdl �(_ Applicant (Name): IA_ �j1!� - kj � L Address:IV- j E I S l'`,r.0 Qc k Daytime Phone: (( 9 (414- l j C (Evening Phone:6 tC 1i " (4- Fax: ( ) Contact Person "on site" day of the event:) 0 LA r 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? Are admission, entry, vendor or participant fees required? If YES, please explain the purpose and provide amount(s): $ES _ NO _ YES dNO $ 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. food poi-1/4/6 tA)(1LV-2, 1‘e.,_ e a - MM-1A .Q03 1it_-12-1Lb k'IA,I ln,I's 0 .2.01 t u R hAent VAhMA,4 oss ft -43 001-tks .elA �NS,P l'LD 10:Taf)l ht t s c, 1,-ecLc L\ s-e.a ' YES J 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: 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: cfjod! /So�� t i2 OSivvp \C3 h m kAAS , ar + ca. ' %S ).AAiikR.. eie. r1CLIAI�-23 DOI . _ YES .Y NO Does the event invo Ve 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 1/NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. DYES _ NO Does the event involve the use of tents or canopies? If YES: ' Number of tent/canopies ,. Sizes 9.1) 1..3 p ea IA n ((fir g s r At tk U,NOTE: A separate Fire Department permit is required for tents dlr canopto s. atr-eck'a\nOcVQ. _ YES /NO Weill th the iinnvvolve thc. e u l o, f the City stage or PA ystem?ll 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: \00c1., Lj t (.(hP S O'Ck. 4 bco1-tiS t.A fie- ak %AA kAc\ arszckAiDrvoy1e tau If you intend to cook food in the event area please specify the method: VGAS ELECTRIC / CHARCOAL V/ 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: rk•C C A .Pra �1 A l C'_' JZIA,) S �j C Ir( r:, cocc+z- 0 9 Ckr r tk. u eart LcAtOa Please describe your procedures for both Crowd Control and Internal Security: 1\ .0 ? ) UW15SXT, ►�.�45, ((.' 1 DwAd... w c o U t cks-e, 6LOtit .,t tn, i' r /IQ., S �C-Lit r t_1" YES O 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. r C1_,ro. .Prat 0_ px li✓A s (-7, AA AO rrcz Please describe your Accessibility Pla for access at your event by individuals with -disabilities: Please provide a detailed description of your PARKING plan: am. c.iA, a i% Please describe your plan for DISABLED PARKING: r,bl2ri rt rkLi ci (9U IA rC l Q��iC a,4 b �( )t/uz- 1 1A, Lk. ( a✓f of 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 Please describe your plans to notify all residents, businesses and churches impacted by the event() INP_ S `r l ke1 i l S 1 l-t,P0.1uc- s" U. t5u-r" Gt kAti \` (��s� 1 l,�r�Qd� f1np_r'�slA C9 ira 2. l Lb .�.i�,r (M to.t�. NOT Neighborhood re e�lif-nis 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: 1 _ Number of Bands: D Type of Music: ' . C 120A_CC 12- t S ES _ NO Will sound amplification be used? If YES, please indicate: Start time: k. pm Finish Time tj t 0 0 ame YES 7NO 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 I 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 ft [[ i U (CL Cc 7 lJ `O Rt ELr 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, 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 3'r Yl a_mAs of i c_ E kLA C 'U Person in Charge of Activity)8 14 Ol.t tCt � t c Address aq'a,°l C I ku s\. %yC�f 16f& aUSU-4 QC,, c'i,La,57) Telephone Len_ 115 aU (Date(s) of Use \ b_ _ ,9.Od 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. SigySa'ture of Applicant 7 / - Official Title Date For Office Use Only Certificate of Insurance Approved Date 7 RE UESTf6R X- WAIVEROF FEES 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 or i ization Y �Y1Ck�s 1`(��I ��t 1 title 1 o h r _ta rk cR Type of Organization (-wt,IA: r (Service Club, Church, Social Service Agency, etc.) , 3. Will the event generate net income or proceeds t the sponsoring organization? f- 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. 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) Sigaiaure Date 61oAiG we sr WALL eNTERrA/ i acr 1 Loco- del i 44201 OiNlyiotr AleA 194 5 zontef aPAwtsa GAeb)s 1 SPANS s/a Crto“ p 2 PAIL- fig G�RSiL�D 0 'sir WA L L 4 �-�,r a-rF Ira w 1 � ►7 ► C CATHOLIC MUTUAL GROUP® serving the temporal needs of the church since 1889 June 29, 2005 City of National City 1243 National City Boulevard National City, Ca 91950 RE: Certificate of Coverage St. Mary's Catholic Church October 9, 2005 Gentlemen: W I'm enclosing a Certificate of Coverage for the captioned group whowill be holding their Annual Fund Raising Fall Festival on October 9, 2005. The certificate names the City of National City, it's officials, agents and employees, as "Additional Protected Person(s)", per your "Public Property Use Agreement". I have reviewed the insurance requirements on behalf of our member, St. Mary's Catholic Church. It is my understanding that you are only requiring them to indemnify you for claims arising out of their negligence, not the negligence of others or your negligence. Furthermore, it is my understanding that you are only requiring our member, St. Mary's Catholic Church, to be financially responsible for property damage caused by their acts, not damage caused by acts of nature or your negligence. If you disagree with my interpretation, please contact me immediately. Sincerely, Robert Lang Claims/Risk Manager RL:bb Enclosure cc: Deacon Danny @ St. Mary's Catholic Church Robert Lang Claims — Risk Manager Pastoral Center P.O. Box 85728 San Diego, CA 92186-5728 (858) 490-8285 Facsimile (858) 490-8345 Certificate Holder The Roman Catholic Bishop of San Diego, A Corporation Sole Pastoral Center P.O. Box 85728 San Diego, CA 92186 Covered Location St. Mary's Catholic Church 426 East 7th Street National City, CA 91950 .. Coverages This Certificate is issued as a matter of information only and .,. confers no rights upon the holder of this certificate. This certificate does not amend, extend or alter the coverage afforded below. Company Affording Coverage THE CATHOLIC MUTUAL RELIEF SOCIETY 10843 OLD MILL RD OMAHA, NE 68154 This is to rtify that the coverages listed below have been issued to the certificate holder indicated, notwithstandingany requirement, termcoverage rafforded f any contract or other document named above for the certificate certificate maybe issued or may,nt with respect to which this described herein s subject to all the terms, exclusions and conditions of such coverage. Limits shown may have been reduced by paid claims. Type of Coverage Property General Liability 0 Occurrence Claims Made Excess Liability Other Certificate Number 8585 8585 Description of Operations/LocatlonsNehicles/Special Items Coverage only extends for claims arising out of St. Mary Catholic Church's Annual Fund Raising Fall Festival, being held from 7:00 a.m. to 6:00 p.m., on October 9, 2005. Total coverage is $1,000,000. Coverage Effective Date 7/1/2005 7/1/2005 Coverage Expiration Date 7/1/2006 7/1/2006 Limits Real & Personal Property General Aggregate Products-Comp/OP Agg Personal & Adv Injury Each Occurrence Fire Damage (Any one fire) Med Exp (Any one person) Each Occurrence Each Occurrence 500,000 500,000 Holder of Certificate. Additional Protected Person(s) City of National City, its' officials, agents and employees. 0168001780 Cancellation Should any of the above described coverages be cancelled before the expiration date thereof, the issuing company will endeavor to mail 30 days written notice to the holder of certificate named to the left, but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives. Authorized Representative ENDORSEMENT (TO BE ATTACHED TO CERTIFICATE) Effective Date of Endorsement 10/9/2005 Charge Credit Cancellation Date of Endorsement 10/10/2005 Certificate Holder The Roman Catholic Bishop of San Diego, A Corporation Sole Pastoral Center P.O. Box 85728 San Diego, CA 92186 Certificate No. 8585 of The Catholic Mutual Relief Society is amended as follows: SECTION II - ADDITIONAL PROTECTED PERSON(S) It is understood and agreed that Section II - Liability (only with respect to Coverage D - General Liability, Coverage F - Medical Payments to Others and Coverage H - Counseling Errors and Omissions) is amended to include as an Additional Protected Person(s) members of the organizations shown in the schedule, but only with respect to their liability for the Protected Person(s) activities or activities they perform on behalf of the Protected Person(s). It is further understood and agreed that coverage extended under this endorsement is limited to and applies only with respect to liability assumed by contract or agreement; and this extension of coverage shall not enlarge the scope of coverage provided under this certificate or increase the limit of liability thereunder. Unless otherwise agreed by contract or agreement, coverage extended under this endorsement to the Additional Protected Person(s) will not precede the effective date of this certificate of coverage endorsement or extend beyond the cancellation date. Schedule - ADDITIONAL PROTECTED PERSON(S) City of National City, its' officials, agents and employees. Remarks: Coverage only extends for claims arising out of St. Mary Catholic Church's Annual Fund Raising Fall Festival, being held from 7:00 a.m. to 6:00 p.m., on October 9, 2005. Total coverage is $1,000,000. PKS-I22 (1-99) Authorized epresentative THE ROMAN CATHOLIC BISHOP OF SAN DIEGO, A CORPORATION SOLE, SAN DIEGO, CA APPLICATION FOR SPECIAL EVENTS COVERAGE ame of Parish or Institution:n +'IrYlartAS eL r'cit 03$ - StreetAddress:L4P Gi-r,p_424" City/State: 1 . e Q rA___ ZIP Coder Act) Lessee (Additional Insured) Information: Date of Event: Och, CA Lk' as)05--- Type of Special Event (Example: Wedding reception, Anniversary party, Etc. - Please Specify):17F4.) 1 }Pc i•l 1J Ca Name of Sponsoring Organization or Time of Event: From ', Q b To 6 `.j'1 tYl Individual Requesting Coverage 11 (Please Prinz Lessee Name(s) or Organization) Lessee (Additional Insured) Co-itact1_ctPerson: f n• Name: _et-�k1 D,' 1�6, ( ts(AC11..4'�� j( Street Address:) .3 A,, t Y a I � t {h -6(VC1 City/State: Nei h fi.� Code:q 164 ��V� . Telephone: Le [ (;t -2,3 (� - � Approximate Number of Participants: Is Liquor Being Served? Is Food Being Served? Yes Yea ISDo Y- No No The Special Events coverage provides $1,000,000 Combined Single Limit Bodily Injury, Property Damage, and Host Liquor Liability coverage per event (not per claim). This coverage is underwritten by Great American Assurance Company, Policy # 96 GLO 590934801 st of Coverage: - Q , Per Event Coverage does not apply to certain events such as, but not limited to: • Sporting events including tournaments & camps • Any carnival event • Amusement rides, including mechanically operated devices, trampolines, & rebounding devices • Fireworks & fireworks displays • Events where a fee or admission is charged,, unless all proceeds go to charity • Events organised or operated by professional promoters/performers • Events with attendance of more than 1,000 persons • Events which exceed 72 hours in duration • Events involving pool or lake activities • Events involving recreational vehicles NOTIFICATION OF AN EVENT MUST REACH CATHOLIC MUTUAL AT LEAST 15 DAYS IN ADVANCE OF THE EVENT. * SUBJECT TO APPROVAL BY C.M.G. AGENCY, INC. * Please make check payable to the Parish where event is taking place ,MPLETE AND RETURN THIS FORM TO: Mr. Robert Lang Claims Risk Manager P.O. Box 85728 San Diego, CA 92186-5728 Please report all claims to C.M.G. Agency, Inc. Claims Department at 1-800-228-6108. IEETING DATE City of National City, California COUNCIL AGENDA STATEMENT August 16, 2005 AGENDA ITEM NO. 21 / ITEM TITLE TEMPORARY USE PERMIT — American Diabetes Association, Feria; Unidos Contra La Diabetes, November 6, 2005 at Kimball Park 10 a.m. to 3 p.m. PREPARED BY Joe Olson, 336-4210 DEPARTMENT Building & Safety EXPLANATION This is a request from the American Diabetes Association to conduct the Feria: Unidos Contra la Diabetes at Kimball Park from 10 a.m. to 3 p.m. on November 6, 2005. This event is a comprehensive diabetes health fair aimed at the Latino population designed to provide information on a healthy lifestyle. The fair will include lectures by health experts, as well as music and dancers on a center stage. The sponsoring organization requests the use of the City stage and P.A. system. Additional tents will be set up and will require a permit from the Fire Department. Environmental Review x N/A Financial Statement The City has incurred $345.00 for processing the TUP through various City departments. Fire Department permit fees for tents total $349.00. Parks Division: $1200.00. Total Cost: $1894.00 STAFF RECOMMENDATION lv� 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 A-200 i9 99) Resolution No. Application for a Temporary Use Permit with recommended approvals and conditions of approval. CITY OF NATIONAL CITY BUILDING AND SAFETY DEPARTMENT APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: American Diabetes Association EVENT: Feria: Unidos Contra La Diabetes DATE OF EVENT: November 6, 2005 TIME OF EVENT: 10 a.m. to 3 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 ] 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 [ ] BUILDING & SAFETY YES [ x ] NO [ ] SEE CONDITIONS [ ] CONDITIONS OF APPROVAL: POLICE 336-4400 Nature of event does not warrant dedicated police resources. Beat officers to be made aware of the event. Periodic police visits based upon un-obligated patrol time. FIRE (619) 336-4550 1. Emergency access to be maintained at all times, into and through the park. 2. Tents having an area in excess of 200 square feet and/or canopies in excess of 400 square feet or multiple tents and/or canopies placed together equaling or greater than the above states areas, are to be used, they shall be flame-retardant treated with an approved State Fire Marshal seal attached. A permit from the Fire Department must be obtained. Permit fees are $349.00. Fees can only be waived by the City Council. 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 (619) 336-4330 1. A Business License is required IF monies are solicited, admission fee is charged, or if food, beverages and merchandise are 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 under 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 & Recovery Division of the Finance Department two weeks prior to the event for verification of business licenses. 3. If any of the vendors or organizations are registered not -for -profit, there will be no charge for a business license. llowever, a business license certificate must be obtained from 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 (619) 336-4580 Parks Division: $1200.00 for personnel to set-up and break down stage. a p LII o CD 1a zIA Gil aV : = ilia CO NATIONAL CITY, CALIF. Type of Event: _ Public Concert )( Fair _ Festival _ Parade _ Demonstration _ Circus _ Motion Picture _ Grand Opening _ Other Event Title: Fin lJ N loos C,,crr,i01 LA O( /motif --TES Event Location: K t ry, g79 L.,_ pf} 2. _ Community Event _ Block Party Event Date(s): From ION nitot5z 6r 2o4' Total Anticipated Attendance:, 5 00 Month/Day/Year ( X Participants) Actual Event Hours: ( 0 ampm to 3 am ( Spectators) Setup/assembly/construction Date: N6V. Start time: Please describe the scope of your setup/assembly work (specific details): 6 / �j��•rr� S� S( »- (A) goo1'f S feLl pkiheim S p� 7tl Dismantle Date: fv • 1D Completion Time: ( 6 6 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: A Fic. ON 1) ( fl a -'ES' As-Sa e tA70'Qr PrnfjL_ o• Chief Officer of Organization (Name) N 4O j n \ Not-for-Prft, Applicant (Name): 12 E.12-T 0+v,R S' Address: 22�j ` > �ixli`l`i I ca �iZ t53o / S•. Q/L6 .a ( 2iOi Daytime Phone: (64) 2;`(•6Nrl Evening Phone: ( ) Fax: (09) 2 3'! ' 1 `fig 1 Contact Person "on site" day of the event: F, 12-T t A .S Pager/Cellular: �ito o) -Ire -- -7 8-7 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? X YES NO If YES,, please explain the purpose and provide amount(s): k ht iB im 2 S' rem A- s P� Sc � f ' i Ed' ,cp� $ 22-,0 as Estimated Gross Receipts including ticket, product and sponsorship sales from this event. $ 2 2 00 c- 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. V cG-77Va?E- 06 /iv vg r>, rr?--? I v i 4 1/1 .F fi t- W-ce— ('Cr c7)1 Cyr fiv (l c i J r l}G %�f1iv e S / C 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: _ YES XNO 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 )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. llo _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 Sizes NOTE: A separate Fire Department permit is required for tents or canopies. 4 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: dv f1 se- a, vFnr 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: I' if (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: D v . 1-'f ;L:47- S �ti ige- !A/ c e 1N45re %h As, R !C E:..- vT Please describe your procedures for both Crowd Control and Internal Security: In/ WVOK_%D ?% al i--2 cv 41.. �c a 1j S E4/`?uri7e.5oi • Vey 5 _ 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: _ YESXNO 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. S v /L 7Y9C HF�-4. GGrr�cs ,41 7uf?" .r Ev'T Please describe your Accessibility Plan for access at your event by individuals with disabilities: Please provide a detailed description of your PARKING plan: Please describe your plan for DISABLED PARKING: 4 Please describe your plans to notify all residents, businesses and churches impacted by the event: QQ eILS L✓6(._ ,bl� p t%!e,§jYLJg✓7Z 2 iiii2dVCi*6Ur iM / g/r.c,,_ NOTE: Neighborhood residents must benotified 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: % A/4V Type of Music: L..fL Le 14 c /1'7 -k l G1ry ) X YES NO Will sound amplification be used? If YES, please indicate: Start time: 10 l J/pm Finish Time 3 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 NO Fireworks, rockets, or other pyrotechnics? If YES, please describe: XYES _ 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 $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit. Organization v4-1 O11 } A SdCA4--> Person in Charge of Activity 2!) ecr2 r Address 22-6- gg6A-ocu79-1 Telephone (6,9 2 3 y - qg 7 Date(s) of Use ( 3cD s.,1Not <� NvErr,BF/� g, Zcor HOLD HARMLESS AGREEMENT As a condition of the issuance of a temporary use permit to conduct its activities on public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and the Parking Authority and its officers, employees and agents from and against any and all claims; demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attomeys fees and the costs of litigation, arising out of or related to the use of public property or the activity taken under the permit by the permittee or its agents, employees or co rectors. J Signature of Applican$ SNi v2 C12c` 6-'2 t c-Ta Official Title For Office Use Only Date Certificate of Insurance Approved Date 7 RE'S U'ESTF.DR WAIVER Qf; FEE 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 orgaihization% i 7'7=77 c Type of Organization c-, 6 -4 0.rv, 2.1-,?o"., (Service Club, Church, Social Service Agency, etc.) 4 3. Will the event generate net income or proceeds tthe 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. XNo (Please proceed to Question 5) 8 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 Date 9 V-[/VVI LVVV 111!A/ 11. i1 1'Ap VV ITIIVTVVIV AUG 1,VV1\.I( VR V4,/• 1L(V. V SIi/,eVV INSURANCE 1 DATE06/2005 04/6/200S INFORMATION FICATE EXTEND OR BELOW. ACORQ CERTIFICATE OF LIABILITY PRODUCER (301) 770-0880 FAX (301) 770-6675 The Novick Group, Inc. 11300 Rockville Pike Suite 907 Rockville, MD 20852 THIS CERTIFICATE IS ISSUED AS A MATTER OF ONLY AND CONFERS NO RIGHTSUPON THE CERT HOLDER. THIS CERTIFICATE DOES NOT AMEND, ALTER THE COVERAGE AFFORDED BY THE POLICIES INSURERS AFFORDING COVERAGE NAIC # INSURED American Diabetes Association National Center 1701 N. Beauregard Street Alexandria, VA 22311 INSURER A. Gulf Insurance INSURER B. WISURERC: INSURER INSURER E f`AVCO Af!GC ANY MAY POLICIES. L r, REQUIREMENT, PERTAIN, .NICJ Vr a...,rcfw,.c LIJI to IstWW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. I TRR N@ TYPE OF INSURANCE POLICY NUMBER PIOL EFFECTIVE VN POLICY LIMITS. A GENERAL X UABILITY COMMERCIAL GENERAL LIABILITY CLP7758582 07/01/2004 (EX 07/01/2005 EACH OCCURRENCE $ 1,000,000 $ 100, 000 DAMAGE TO RENTED PREMISES (Pa rtm want.) l CLAIMS MADE I X I OCCUR 14E0 EXP (My one person) $ 0 GENT. —I PERSONAL S ADV INJURY $ 1, 000 , 000 GENERAL AGGREGATE $ 2,000,000 AGGREGATE LAIR APPLIES PER: PRODUCTS - COMP/OP AGG $ 2,000,000 POLICY El eki n LOC AUTOMOBILE LMBLITY ANY AUTO AU. OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS _ COMBINED SINGLE LIMIT (Ea accident) BONY INJURY (Per person) $ _.] BODILY d nt) $ PROPERTY DAMAGE (Per accident) $ GARAGE LIABILITY ANY AUTO $ AUTO ONLY -EA ACCIDENT OTHER THANEA $ H AUTO ONLY: AGG $ EXCESSAIMORELLA LIABILITY OCCUR u CLAMS MADE DEDUCTIBLE RETENTION $ EACH OCCURRENCE $ AGGREGATE $ $ $ WORMERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICERAIEMBER EXCLUDED? If s, tle5aipe antler WC STA7U- (OTH- TORYIIMITR Fq EL, EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE $ E.L. DISEASE - POL ICY LIMIT $ OTHER DESCRIPTION National to DA Western Division; � City and its officials, claims arising at this Unidos�Contraa LDDED a Diabetes/ SPECIAL PROVISIONS in Kimball Park; the City employees, agents and volunteers are Additional Insureds with respe event out of the negligence of the Named Insure r. City of National City 1243 National City Blvd. National City, CA 91950 ACORD 25 (2001/08) CANCELL 'ION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER MALL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR UABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. ALRHORIZED REPRESENTATIVE Louis Novick/GRETTA ©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 (2001/08) UV/ VV/4VVV n.1.IL 1 A.41 Ina VVxT1(VI-UV IV AL JAW 1YVY1l.lt Aft VLLI', 111L♦ tJVVI/VVV From Margretta Palya The Novick Group Phone 301-770-0880 To Robert Rivas 1-619-234-9981 Comment Attached is the Certificate for the health fair in National City on 11/06/05. NOTE This event occurs after the current policy expires. if this policy is not renewed similar coverage will be placed with another carrier and a new certificate issued. EXPLANATION City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE _August 16, 2005 AGENDA ITEM NO. 22 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 DEPARTMENT George H. Eiser, Ills Ext. 4221 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 This item was continued from the City Council meeting of July 19, 2005. Environmental Review Financial Statement N/A X N/A Account No. STAFF RECOMMENDATION Adopt ordinance. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) Staff Report Proposed Ordinance Resolution No. ,A-200 (9/Hr) f 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,f 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 Ienders,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 concems. a 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. 4 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. s See Appendix Item 15. 6 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. 5 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" ITEM APPENDIX 1. Monograph, The Financial Divide: An Uneven Playing Field" (March, 2005) published by California Reinvestment Coalition. [Subject: Bank Financing of Check Cashers and Payday Lenders in California Communities]. PAGE 1 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 Playing Field Bank Financing of Check Cashers and Payday Lenders in California Communities March 2005 California Reinvestment Coalition OOQ 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 to 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 I O00 3 rr 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 Califomians 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. s"California: Stop legal loan sharks" Editorial, Los Angeles Times, p.B 10, May 14, California 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 lower -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 study' 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 Capitals 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. 7 "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 3 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 cashers 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 percent" 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 io 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 owned 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 'ofthem 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.12 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 are Good Bank Customers" published by the Financial Services Centers of America, page 2. 2 Ibid, page 3. Page 5 000 7 6- 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 the 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 articles 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 - the 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 Fcderation of America and the US Public Interest Group, November 2001. 15 „Seeking Quick Loans" by Diana Henriques, December 7, 2004. Page 6 000 The Financial Divide Retired Admiral Charles S. Abbot, President of the Navy -Marine Corps Relief Society, terms payday lenders "just legalized loan sharks'`." 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 cashers 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. 6 Letter to Washington State Senator Darlene Fairley in support of bills to tighten regulation of payday lending. Page 7 000 9 11 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 (3 Debtor ACE America's Cash Express Advance America Cash Advance Advance America Cash Advance 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 Fresno County Outlets 7 Centers 23 Centers 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 Lender US Bancorp Wells Fargo Fin Leasing 1 US Bank NA 7 Union Bank of California 3 JP Morgan Chase 3 Banco Popular 4 Bank of America 8 PNC Bank NA National City Bank 2 Merchants Bank of CA 8 Wells Fargo Bank Page 9 Lender Wells Fargo Bank US Bancorp Wells Fargo Fin Leasing 1 United Commercial Bank 6 US Bank NA 3 Hanmi Bank Westamerica Bank 5 Bank of America Bank of America National City Bank 8 PNC Bank NA National City Bank 12 Wells Fargo Bank 3 Banco Popular 00011 The Financial Divide Los Angeles County 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 In a 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 Page 10 Outlets 38 59 1 4 7 2 12 1 16 2 4 14 3 31 42 8 26 10 1 1 23 8 1 5 23 55 1 4 44 Lender Wells Fargo Bank Texas US Bancorp Wells Fargo Fin Leasing JP Morgan Chase Bank Wilshire State Bank Orange Community Bank Wilshire State Bank Union Bank Corus Bank Bancomer Hanmi Bank Saehan Bank US Bank NA Banco Popular Union Planters Bank Banco Popular North America Merchants Bank of CA Wells Fargo Financial Leasing, Inc. Bank of America PNC Bank NA National City Bank Banco Popular North America Bank of California Union Bank of California California Bank & Trust Hanmi Bank Merchants Bank of CA Merchants Bank of CA Merchants Bank of CA Merchants Bank of CA Merchants Bank of CA Wells Fargo Bank Banco Popular Union Bank of California Merchants Bank of CA Banco Popular US Bancorp Banco Popular 00012 The Financial Divide Su Casa De Cambio Sun's Cash Express Travelex Currency Services USA Cash Services Management, Inc. 4 Merchants Bank of CA 1 Merchants Bank of CA 4 Barclays Bank, Sec Trustee 1 Wells Fargo Bank Sacramento County Debtor Outlets ACE Cash Express 13 Advance America Cash Advance Centers 17 Advance America Cash Advance Centers California Budget Finance 2 California Check Cashing Stores 13 Cash & Go 7 Cash 1 3 Check Into Cash 6 Check 'N Go of California 6 Check 'N Go Worldwide Money Mart 14 Sunrise Check Cashing 1 Travelex Currency Services 1 USA Cash Services 8 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 Outlets 3 23 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 5 Wells Fargo Bank 4 Bank of America 3 Hanmi Bank Westamerica Bank 2 Wells Fargo Fin Leasing 5 Travelers Express Co. 7 Bank of America National City Bank 13 PNC Bank NA National City Bank 4 Merchants Bank of CA 00013 021 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 av1 w.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 Depaitfnent 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 Precicwinkle 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\ OCAI. SETTINGS\TEMPORARY INTF.RNET FILES\OLK5\PDL LAW LEG CHART WALRATH. WPD 00017' G90 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 Aocountablllty• 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 ssemi- 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 lull product, Including the scope and methodology, click on the link above. For more information, contact Derek Stewart at (202) 512-5559 or stewartdagao.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 GA0.05-349 Predatory Lending 00021 acJi United States Government Accountability Office Washington, D.C. 20548 April 26, 2006 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. 'For the joint service instruction, see AR190-2, OPNAVIST1620.2A, AFI31-213, MC01620.2C, COMDTINST1620.1D, Armed Forces Disciplinary Control Boards and O(f 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 GA0-05-349 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.' 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 (Le., 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- 3See GAO, Military Personnel: More DOD Actions Needed to Address Servicemembers' Personal Financial Management Issues, GAO-06348 (Washington, D.C.: Apr. 26, 2006) 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-05348 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-06-348. Page 2 GA0-06-349 Predatory Lending 00023 Results in Brief a consumer advocacy group —and the Community Financial Services Association of America —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 findings 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 2006 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 GA0-05-349 Predatory Lending 00024 3 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-06-349 Predatory Lending 00025 323 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 aresult, 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 GA0.05-349 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 °According to the Federal Reserve Bank of Philadelphia, fees for a payday 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-06-349 Predatory Lending 0002 3C. Loans That Are Considered Predatory Is Unknown, but Sources Say Predatory Lenders May Be Targeting Servicemembers advances.e 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.9 Use of Consumer The extent to which active duty servicemembers use c considered to be predatory and the effects of such borronsumer loans wing 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.cfsa.net) 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 Initiatives, RS21728 (Washington, D.C.: Feb. 5, 2004). Page 7 GAO-05-349 Predatory Lending 00028 3(41 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,1° 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. 11 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 (i.e., 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 exists 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 3-7 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. Beca ise 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 Harm's Way At Horne: Consumer Scams and the Direct Targeting of America's Military and Veterans (Boston, Mass.: May 2003). Page 9 GA0-05.949 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 site' 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.' 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 16 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.' '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. 'See Consumer Federation of America, Internet Payday Lending: IIow 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 3C 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 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: Department of Defence and Consumer Federation of America. Page 11 GA0-05-349 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 a-ssistance 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.16 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 16Under 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 establislunent 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 cart 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 GA0-05-349 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 officials have approved the businesses and their claims.18 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.19 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. 6, No. 4 (2003). U.S. Army publication by the Office of the Chief of Public Affairs. 'DOD Instruction 5120.4, Enclosure 4, Department of Defense Newspapers, Magazines and Civilian Enterprise Publications (June 16, 1997). Page 14 GA0.05-349 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 16 GAO-06-349 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 2°Phese 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 GA0-06-349 Predatory Lending 00038 Ltc, 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 18 GA0-05-349 Predatory lending 00039 (I7 Agency Comments and Our Evaluation 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. 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 GA0-05-349 Predatory Lending 00040 those lenders that adversely affect servicemembers on the commanders' installation. DOD's comments are reprinted in appendix III. 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) 512-5569 (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 N. Sincerely yours, Derek B. Stewart Director, Defense Capabilities and Management Page 20 GA0.05-349 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 Slte 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: GAO. 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. To 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 GA0-06.349 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 surveyb to assess its reliability and determine prevalence rates for four types of loans that DOD says may contain predatory practices. The August 350 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 GA0-05.349 Predatory Lending 00043 sI 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 utilised 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 underutilizing 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-06-348, app. II, for participants' answers on the other six questions asked in the focus groups. Page 24 GAO.05.349 Predatory Lending 00045 s3 Appendix II Predatory Lending Findings Prom 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 II 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 9.6 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 II Predatory Lending Findings from GAO -Led Focus Groups Held at 19 Installations E 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 56, Appendix 11 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 GA0.05-349 Predatory Lending 00049 g7 Appendix II Predatory Lending Findings from GAO -Led Focus Groups Held at 19 Installations Page 29 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. GAO-05-349 Predatory Lending 00050 6-6 Appendix III Comments from the Department of Defense OFFICE OF THE UNDER SECRETARY OF DEFENSE 4000 DEFENSE PENTAGON WASHINGTON, D.C. 203014000 APR 1 2 2005 IMLIVIIONNIS. Mr. Derek B. Stewart Director Defense Capabilities and Management U.S. Government Accountability Office Washington, D.C. 20548 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 Utiliud,' dated March 29, 2005 (GAO Code 350661)." Comments on the two draft report recommendations are attached. Sincerely, 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 GA0-05-349/GA0 CODE 350661 "MILITARY PERSONNEL: DOD'3 TOOLS. FOR CURSING THE USE AND EFF&CTs OF PREDATORY LENDING NOT FULLY UTILIZED" DEPARTMENT OF DEFENSE COMMENTS TO THE RECOMMENDATIONS RECOMMENDATION I: "The 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) DoD 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 - S20 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 rollovers 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 acdvities 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 beet practices limit the number of roll-over loans allowed. Their limit is 4 rollovers, 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.05-349 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 their 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 So 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 open 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-litnit 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 Associatlon, 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 concerns over 2 Page 32 GA0-05-349 Predatory Lending 00053 (01 Appendix III Comments from the Department of Defense payday lending. The Department has been encouraged to see 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 cowumea, 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 Army's Office of the Provost Marshall General. These changes are: 1) 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 a business "off limits," the rile will apply to all Services. RECOMMENDATION 21 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 TAEA Analysis from "Predatory Lending and the Military: The Law and Geography of "Payday" Loans In Military Towns State Installation Number of payday lending locations Within adjacent counties Within adjacent zip codes Alabama Fort Rucker 68 42 Maxwell AFB 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 NS San Diego 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 II NCAS Cherry Point 19 6 Camp LeJeune 14 10 Fort Bragg/Pope AFB 39 25 Page 34 GAO-05-349 Predatory Lending 00055 (03 Appendix III Comments from the Department of Defense Ohio Oklahoma South Carolina South Dakota Tennessee Texas Virginia Washington Wright -Patterson AFB Tinker AFB Vance AFB Altus AFB Fort SiI1 Shaw AFB MC Beaufort/Parris Island Charleston AFB Port Jackson Ellsworth AFB Millington Milan Arsenal Sheppard AFB NAS Corpus Christi Fort Bliss Goodfellow AFB Fort Hood Lackland AFB Fort Sam Houston Randolph AFB Fort Lee Norfolk Fort Eustis Langley AFB Fort Story Fairchild AFB Fort Lewis NS Bremerton McChord AFB NS Everett NAS Whidbey Island 30 124 8 4 10 37 21 95 72 42 22 45 61 14 4 124 124 124 5 230 41 68 102 55 75 169 11 173 23 17 53 7 30 4 44 45 40 32 8 12 12 19 8 9 9 19 9 50 7 25 11 32 24 6 42 2 5 Page 35 GAO-05-349 Predatory Lending 00056 (L • 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. Gaffing, Gregg Justice, III, David Mayfield, Brian Pegram, Minette Richardson, Terry Richardson, and Allen Westheimer made key contributions to this report. Page 36 GAO-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. GA0-04-805. 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 ic(O Appendix V Related GAO Products (360661) 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. 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RECYCLED PAPER 00060 SB157.html Page 1 of 7 (4) �( vxgia nQra! :amend:01u Legislation + House+ Senate + Information ' Offices v Home 04 SB157/AP Senate Bill 157 By: Senators Cheeks of the 23rd, Cagle of the 49th, Stephens of the 51 st 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." hup://www.legis.state.ga.us/legis/2003_04/fulltextisb157.htm 00061 5/26/2005 SB 157.htm1 7O-: Page2 of7 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/Iegis/2003_04/fulltext/sb157.htm 0 0 0 6 2/26/2005 SB157.html Page 3 of77 r 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 fmancial 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/sbf57.htm 00063 5/26/2005 !`T 5 7.'-arm'. 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 apely with respect 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 1irn:.t.ing 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, the 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 ('3) 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-Ii7-3 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:/hvww.legis.state.ga.us/lcgis/2003_04/fulltext/sb157.htm 00064 5/26/2005 SB157.html Page 5 of 7 73 F- 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 deteiniine 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 7 Sly'_ 5 7 .'r.tm' Page 6 of 7 loans purports to be acting as an agent of a bank or thrift, then the court shall be authorized to dete:rmi:le 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, cr 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 determ:'une 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-• :i 7-7. 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. Th.e site or location of a place of business where payday lending takes place in the State of Ge orgia.: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 //wwwlegis.state.ga.us/legis/2003_04/fulltext/sb157.htm 00066 006 5/26/2005 SB 157.html Pagel of 15- 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.legis.state.ga.us/legis/2003_04/fulltext/sb 157.htm 00067 5/26/2005 :.J7 - i.e r,ieorgia. ayaay :.,enc'ang taw r2'i(2 .) __ Uenter for Responsible Lending Page 1 of 1 1 1 f? f O R ES' N RLE LENDNG Media Center A RESOURCE FOR PREDATORY LENDING OPPONENTS Now Archive Take Action Site Map Fredatary ► SB :L57' - The Georgia Payday Lending Law Mortga8,e Lending (2004} Payday landing ► Overview Payday Lending Basics Nine Signs of a Predatory Payday Loan Fact v. Fictions Payday Industry Claims Alternatives to Payday Lending Payday (_ending Legislation 20C4 Payday Lending Research Palyday Lending Victims Other Allusive I► Financial Practices Predator), Lending Fund North Carolina Researcli Library Federal Set State ► Update For Cerii urners About the Center for ► Responsible l ending Stay informed. Sign up now co receive news and update; from CRL.. MEC ®SQfH RE.► Sparc your exrerience with predator loans. GEORf3IA PROTECTS CONSUMERS WITH STRONG PAYDAY IL.ENDING LAW A new Georgia law prescribes harsh felony penalties for lenders who rna ce loans of $3,000 or Tess 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 iSO 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 _ending. All Rights Reserved. Privacy Policy A NEWS HEADLINI • Payday loans o help -- at a pri, Seattle Post -In 5/24/05 • Paying More Fc Loans? CBS News, 5/1 • Payday loan bil House Austin America Statesman, 5/: • All Payday Hea 4 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 Lend': Secured by Car Borrowers in D (04/14/05) • House Bills on Lending (H.R.' H.R. 1295) (03 A JOB•QPEFIIIMt3S http://www.responsibfeleiacling.org/payday/pl_leg2004.cfm 00068 5/26/2005 The N.C. Payday Lending -- Center for Responsible Lending Page 1 of 3 7 (1111R fOR FS'ONSIBLE LE \ DD G Mediae atop Predatory ► Mortgage Landing Payday Lending ► Other Abusive ► Ffnanciai 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 ► About the Center for 0- Responsible Lending FIL NEWShF1 Stay informed. Sign up now to receive news and updates from CRL. 1+� CLACK TO SUBSCRIBE► Share your experience with predatory loans. » A ONCE FOR PREDATORY LENDI}G OPPONENTS Contact Uss Maws Archive The N.C. Payday Lending Tales 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/i • Predatory lend, debated USA Today, 5/: • All Headlines HOTTEST TOPIC • CRL Paper: Tht Overdraft Loan (pdf, 05/26/05 • Eakes Testifies Predatory Lend Legislation (pd • CitiFinancial OF Industry-Leadi! Practices (05/1 • Car Title Lendii Secured by Cal Borrowers in D (04/14/05) • House Bills on Lending (H.R. H.R. 1295) (03 JOB OPENINGS http://www.responsiblelending.org/predlend_nc/payday.efm 00069 5/26/2005 Tie Pa.yeay en.c::.ng -- Cen.`er `or P;espon.sib'e Lending Page 2 of 3 "It's true that No,-th Carolinians with low -paying jobs need sources of emergency mcney. What they don't need is high-priced loans that drive them to greater desperation." News & Observer editorial 8/29/92 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 fcr one year and pay civil penalties of $325,000. Payday Lendir g 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 Fenrsylvania. 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 TQp 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 1:he intent of the original NC General Assembly statute in 1997. • We support changes to state check cashing and/or consumer filance 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://vr,Nwirespon.siblelending.org/predle;ad_nc/payday.cfm 00070 5/26/2005 The N.C. Payday Lending -- Center for Responsible Lending Page 3 of 3 79 will be included in the formulation of any legislative solution that may be proposed. Back to Too 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 Join 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 e 0 Page 1 of 4 Ottorgin Ocneral Xisizeinbig Legislation Housev Senate "r Information v Offices •• Horne SB 157 - Payday Lending; deferred presentment or advance cash services; regulate unlawful transactions (1) Cheeks,Don 23rd (2) Cagle,Casey 49th (3) Stephens,Bi1151st (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/legis/2003_04/surnisb157.htm 00072 5/26/2005 Page 2 of 4 81 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 0M PM House 064 103 007 006 Sailor, Sheldon V064 2/12/04 PM 2 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 t 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 pM 3 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 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... webmaster@legis.state.ga.us 06/23/2004 10:02 http://wwvv.legis.state.ga.us/legis/2003_04/sum/sb157.htm 00075 5/26/2005 Knowl.edgePl.ex: Article: Texas Billl. Targes Companies See'c°.ng 'o �r r� c' r. Solc a,,ye .. 0.:.: Texas Bill Targets Companies Seeking to Profit From Soldiers' Deployment John Moritz Fort VVorth Star -Telegram April 12, 2005 LexisNexis AUSTIN -- High -interest lending companies that target soldiers bound for the war zone would be barred frorn engaging in high-pressure collection tactics and wage garnishing if a bill approvec Monday by they --exas Senate becomes law. "Anywhere there are military posts, there are predatory lenders at the gate," said state yen. Eliot Shapleigh, D-EI Paso, whose legislation passed without opposition. "When soldiers are off fighting a we' for the t-lnited States, we should fight ' here for them." The legislation came after reports from Fort Bliss, near El Paso, and Sheppard A r Force Ease in Wichita Falls and other bases that U.S. service members and their families were being hounded or money owecl 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 $ 4,00C 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 fact: 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 aoout 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 tian $ 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 hdp://www.dfiv.com Copyright © . 2005, Fort Worth Star -Telegram, Texas Distributed by Knight RidderfTribune 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 r prints(dikrtinfo.com. http://www.knowledgeplex.org/ne:ws/84465.html?p=1 00076 4/20/2005 Fighting 'asset stripping' in San Diego The San Diego Union -Tribune Page 1 of 2 S/gTa yQ" f COM Fighting 'asset stripping' in San Diego March 29, 2005 C PRINTTHIS 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 puzzled: "Let's see. Last week, I worked with a 25-year-bld woman who has two kids, ages u 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, 140 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, includingre nt-to-own and the new heavy -hitters, payday lenders and check -cashing companiepawnhbusinesses also popped up around military bases, targeting military families. Payday lenders offer loans against future paychecks, at interest rates of up to 500 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 $60o, 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 unexpected expenses http://signonsandiego.printthis.clickability.com/pt/cpt?action=cpt&title=Fighting+%27asset.03/29/7 7 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 Dieg6 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 rlouvects,com or vla www.thefuturesedge.com. »Next Story» Find this article at: httpl/www.signonsandiego.com/unlontrib/20050329/news_Irl e291ouv.html fi Check the box to include the list of links referenced In the article. 00078 http://signonsandiego.printthis.clickability. com/pt/cpt7action=cpt&title=Fighting+%27asset.. 3/29/2005 Ca)J2otma .IJepaifinent or L orporations - 1-Aurvtusita uzrt2ut... uup.iiwwwguy, pieta utuu.uuu ICallfornla Home Nla 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 Usi Financial Services Division About the Division Complaints Contact Us Escrow Agents: Employee Disciplinary Actions FAg's Finance and Lending Eclucatton Applications & Forms Licensee Ustinq Notice to Potential Claimants of The Escrow Source Other Useful Links Publications Contact the Webmaster if you have questions or comments concerning this site or call 1-866-ASK-CORP (1-866-275-2677). .IDE?ART)4Bt1T OF CORPORATIONS CALIFORNIA'S INVESTMENT a FINANCING AUTHORITY . ESTABLISHED 1913 CALIFORNIA DEFERRED DEPOSIT TRANSACTION LAW Monday, February 28, 2005 search 0 My CA i'.) Corps Website 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). On the operative date, the responsibility under the CDDTL for licensing and regulating persons engaged in the business of deferred deposit transactions ¢.e. deferred deposit of a personal check) will be transferred from the Department of Justice to the Department of Corporations. The California Department of Corporations is in the process of approving applications for the California Deferred Deposit Transaction Law (CDDTL). A tilt of applications that have been approved will be updated al least once each day. Please go to Approved Applications Listing jpdf) to review the alphabetical list of companies, by legal name, that have been licensed under 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 trani.raiur 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 ddinitlon of licensee and are then . ure 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 selling 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 lost, an unincorporated organization, a government 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 deferred deposit transactions. A licensee with one or more Gceksed locations may file a short form license application established by the Commissioner. Applications am 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 the appropriate exhibits, an application fee of $200, an investigation fee of $100, and the assessment payment (d applicable). All fees and the assessment are non-refundable. 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. Shad form applications for each additional location, including mobile units, must include an application fee of $200, and an investigation fee of $100 and the assessment payment (if applicable). 2. Maintain a surety bond in the amount of $25,000 which must be in effect prior to the issuance of a license. 3. Submit financial statements prepared in accordance with Generally Accepted Accounting Principles that demonstrates that the applicant has a net worth of at least $25,000. After Iicensure, the licensee shall be required to maintain a net worth of at Least $25,000 at all times. 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% o more of the outstanding equity interests of the applicant; and • Other key persons involved, such as manegersimembers, 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. -7 1 of 3 2/28/2005 10:00 AM fl n 11"f] An application may be denied if any officer, director, general partner, or person owning or controlling, directly or indirectly, 10% or more of the outstanding Interests or equity securities of the applicant has, within the last 10 years (A) been convicted of or pleaded nolo contendere to a crime. or (8) committed any act Involving dishonesty, fraud, or deceit, if the crime or act Is substantially related to the qualifications, functions, or duties of a person engaged in the business of deferred deposit transactions. B. The following are some of the requirements a deferred deposit originator must comply with after the Department of Corporations Issues a license: 1. Each year a licensee is required to pay an assessment for each licensed location. The assessment shall be the pro rota share of all costs and expenses reasonably incurred in the administration of the CDDTL. The assessment notices shall be mailed to each licensee on or before the 20th day of May each year and must be paid wllhln 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, accounts, and records that will enable the Commissioner to deleneifif the licensee complying ch ithe icensee epp s of maintain the after CDDTL and with the rules and regulations promulgatedby records as required by the Commissioner. 3. The Commissioner may examine the business, books and records of the licensee any time, but not less than once everytwo years. The eonrepresentativesab hall have free access to� of the licensee. The licensee theshall pay ces and places the costs of the books, accounts, papers, records, Nes, 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 shall 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 CDDTL. 5. A licensee, regardless of the number of locations, must maintain a net worth of at least $25,000 at all times. 6. An advertisement disseminated primarily in California for a defend deposit transaction, shall disclose in the printed 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 Corporefi«re pursuant to the CDDTL. The Commissioner may require lice nsees 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 siren 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 at 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 placed business. 9. Licensees are required to notify the Department of any change in location at least 10 days prior to the move. Failure o do so may subject the licensee to a civil penalty not to exceed $600. 10. The license, along with any orders approving a different name, shall be conspicuously posted in the place of business authorized by the license. 11. A license is not transferable or assignable. 12. Licensees must file an annual report by Maw 15 of each year commencing on March 16, 2005. 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 deferred 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 off. 00080 2/28/2005 10:00 AM 2 of 3 LexisNexis(TM) Academic - Document Pia e lroA 5 e` ]Return 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: FE^ ^n P,! 5: 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 combined to 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 loanmakers 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. CITY 00081 http://8 0-web.lexis-nexis. c om.libproxy. sdsu. edu/universe/printdoc 10/5/2004 LexisNexis(TM) Academic - Document Page 2 of'S 40 "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. A11 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 900 percent. 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, but'he 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 firmer track of consumer and industry practices in this state. Oceanside leads all ZIP codes in California, with 22 deferred deposit lenders, according to the Depai linent 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 : // 8 0-web. lexi s-nexi s. c om.libproxy. sdsu. edu/univ erse/printdoc 00082 10/5/2004 LexisNexis(TM) Academic - Document Page 3 of 5 cf 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 frees." 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(1 M) Academic - Document ?age t. p 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 Mahrnood 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. lexis-nexis. com.libproxy. sdsu. edu/universe/printdoc '0003/1 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 http://80-web.lexis-nexis. com.libproxy.sdsu. edu/universe/printdoc 000S5 10/5/2004 Editions of the North County Times Serving San Diego and Riverside Counties lll.. C OM News Search Web Search Horne News Sports Business Opinion Coastal Inland Californian Archives Monday, January 10. 2005 Contact Us riWlCiti Cf,[fiiTg7t3fES [t1E�i1ilYt tW �" I n,i '1•. Pnctol S.iLscrib Ca'en�.tar Horree sobs Classified Search Advertising Circulation Reader Services Traffic Stocks Entertainment Features Columnists Cor State National Special Reports Columnists Letters OI Last modified Saturday, January 8, 2005 7:17 PM PST Paycheck -to -paycheck living feeds payday lending industry By: EDMOND JACOBY - Staff Writer OCEANSIDE — He was in civvies, but there was no mistaking that he was a Marine. His posture said so, as did the quiet "Yes ma'am" with which he answered a 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 at 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 scud •,•_•.�> Click now to send us your news. When it matters to North County, trust your North County Times http://www.nctimes.com/articles/2005/01/O9/business/news/17_17 261_8_05.txt Keyword Se Send Us' Your Local !it Click lit w4 HARD:: Arts & Entertai Magazin( Own A Piec Of Mist: A Thous Miles 1 alghdl 1/11/2005 0008E a•va ul - ♦ova ut 4J411 ✓U.SV u11U Jvu u1'eV 1V VV1J1UG t.VWAy l.VILL1i11U L) rage cm y q 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 California 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 18 05.txt News Upc more AP. 1 / l 1 /2005 00087 "Sure, this service can be abused," he said, "by the borrowers: They're short a couple of hundred dollars so they borrow the money from me. Then after a month the money is repaid and they're short a couple of hundred dollars again; it can become a vicious cycle." There is a cure, he said. "Tighten the belt. Some of these people have $500 telephone bills. I know, because they bring in their telephone bills to prove their address." The Marine Corps advises its enlisted personnel to avoid payday lenders, which it characterizes as predatory lenders. "It seems like a low interest rate — 15 percent --- but the loan is due in two weeks, and that's a very high interest rate," said Maj. Mike Renz, director of the joint legal assistance office at Camp Pendleton. "The Marine Corps on the whole tries to get Marines educated. We have a financial management correspondence course, and every correspondence course wins the Marine points toward promotion," Renz said. According to Renz, the Corps will not enforce debt collection, but "we expect all Marines to pay their just debts." A Marine who passes a bad check, like anyone else, is subject to criminal prosecution. But giving a check to a payday lender that is dishonored by the check writer's bank is not classified as writing a bad check and cannot be prosecuted criminally under Califomia law. • Payday lenders are supposed to tell their customers that they are not subject to any criminal penalty for failure to comply with the terms of the payday loan agreement. The law requires that they supply disclosure statements that say so prior to closing a cash advance deal. In addition, payday lenders are required to post notices, "clearly and conspicuously ... in the unobstructed view of the public" in their places of business showing the dollar cost and the annual percentage rate for 14-day and 30-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. Tables of fees were posted, but without the required annual percentage rates associated with the fees. "What we do is legal," said von Sighart, who opened his first payday advance store adjacent to Fort Ord on the Central Califomia coast in the early 1990s, then opened one near Camp Pendleton when Fort Ord was closed. "But if I were the commanding officer of that base, I would certainly counsel those under my command how to manage their finances," von Sighart 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 him a check for $300 and he'll let you use $255 of his money for a couple of weeks. Contact staff writer Edmond Jacoby at (760) 739-6675 or ejacoby@nctimes.cem. Recent Top Stories - Chargers' season ends with OT kick - Storms stacked up to hit San Diego County - North County fans arrive early for game http://tiwwv.nctimes.com/articles/2005/01/09/business/news/17 17 261 8 05.txt 1 / 1 1/2005 00088 North County 1 ones - North San Diego and Southwest Riverside county cotummsts rage v 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 Gull] To local Events Related Advertising Links Payday Lending Apply For Your $500 Loan Today. Nothing To Fax, No Credit Check! www.FastCashExpert.com Payday Loans Up to $1000 Immediate Approval: No Credit Check Get Your Cash within Minutes - Now! www.PersonalLoanst23.com Home News Sports Business Opinion Entertainment Features Columnists Cor webmaster@nctimes.com C 1997-2005 North County Times - Lee Enterprises editor t r http://www.nctirnes.com/articles/2005/01/09/business/news/17_17_261_8 05 .txt 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. l7'l..j' 000-0 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%.1 The transactions follow approximately this pattern: 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 o the dti 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 3Id., note 12; Johnson (2002). An alternative 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 iot the dti THE DEPARTMENT OF TRADE AND INDUSTRY SOUTH AP RICA 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 concerns 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% 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%, 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). 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.8 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.lo 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 8 Id.; 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.gov. R. Riccobono, "Memorandum for Chief Executive Officers," OTS, November 27, 2000. 00094 to 5 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 215t 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.orglwhitepaper.htm Johnson, Creola (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 . Resources • Tips * Support r Contact . Saerctf 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 00096 http://www.consumersunion.org/finance/paydayfact.htm 7/23/2004 Fact Sheet On Payday Loans Cam 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.orgifinance/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 termination 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 -team loans to their members. Many more consumers 00098 http://www.consumersunion.org/finance/paydayfact.htm 7/23/2004 Fact Sheet On Payday Loans can join credit unions now that affiliation requirements are less strict. Page 4 of 4 to-7 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] [ Tits ] [Search] [ Home ] Please contact us at: http://www.consumersunion.org/contact.htm All information ©1998 Consumers Union 00090 http://www.consumersunion.org/finance/paydayfact.htm 7/23/2004 ;off 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 c 00100 (©9 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 borrowersinto 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 folldws: * 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, 2.QQ0) ;eaf 2000 data). Carr James H. and Schuetz,.Jenny,_ g=,.."Update.. op tli q t , event lndrustry Developments (September 26, 2003)(year 200 '01 bert Fans. "Payday Lending: A Business Model that Encourages ClirOMO Borrowing." Economic Development Quarterly, Vol. 17, No. 1, at p8 (February 2003). Alternatively, borrowers may authorize the lender to electronically draw down a future amount from their account. 2 vow 0 01 01 110 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 lender 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). 7 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.pdf). 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/cccon00.pdf). S 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). 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 ill Table 1: Repeat Borrowing by Available State Data1° State Average Loans per Borrower California 11 Illinois t z Indiana t 3 North Carolinat4 Wisconsint5 11 13 13 8 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 loans 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. t Editorial, "California: Stop legal loan sharks" Los Angeles Times at p.B10 (May 14, 2001). tz Illinois Department of Financial Institutions, Consumer Credit Division. (n.d.). "Short term lending final t3eport."at p. 26 (available at: http://www.state.il.us/dfi/ccd/pdfs/Shortermpdf). 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.gov/dfillegallpaydaylend/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. t3 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 Loans per Borrower Sources: NC Banking Commissioner (2001), Elliehausen (2001) (see Appendix for calculations). 0 Percent of Fees II Percent of Borrowers 21+ 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.18 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.com/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."). 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 lending.' 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 lending25 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. 23 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. zs 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, desite serious concerns raised by national consumer advocates with regard to those loans. ' 26 According to the Missouri Department of Economic Development, $15 is the most common fee per $100 payday loan, but still Tess than the average fee.(http://www.missourifinance.oro/pdfs/survev.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 Skillem, 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 11(c 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 15, 2003). 9 00108 ((7 • 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 organizations3 t 23 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: http //www.banking.state.nc.us/cc/cccon00.pdt). 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: Yi = 0.53X, + 0.30X0.i) + 0.11X0_2) + 0.06X0-3) 73 Office of the North Carolina Commissioner of Banks supra n28 (year 2000 data). 12 001j.1 EQUATION 3: Zi = Y; / Q; 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 Loans Projected Cumulative s to Number of Share of per Single Borro Loans to Loans to Borrowers (Z) Borrowers Bor Shop wers Borrower Borrower ro Numb Using s Using s Using Loans to Multiple we er of Single- One Two Three Borrowers Multiple Shop r (• Q) Borro wers Shop Loans Lender Lenders Lenders Using Four Shop Cumulati (A) (8) (C) Lenders (D) Projected ve Share 1 (F)• (X) (53%) (30%) (11%) (6%) Loans(Y) of Loans 2 66,921 44,539 66,921 89,078 35,468 47,211 20,076 35,468 67,288 1.0% 35,468 8.2% 106,36 3.0% 33,644 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.i 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 0 208,38 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 7,959 130,618 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 6 123,09 57,561 31,673 12,192 7,070 108,497 84.7% 4,717 94.6% 24 25 5,129 6 65,241 32,582 11,614 6,650 116,087 88.1% 4,837 95.9% 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 37,308 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 at 431,21 4 3,472, 985 3,472,985 380,565 Raw data from North Carolina Commissioner of Banks (200t). 14 00113 2 - LRB-00-WB-7 State Regulation of Payday Loans. Applicable % Max. Fees Effective APR State Interest Cap Min./Max. Term Maximum Amount Percent/$days' Alabama2 36% for 14 Alaska 36 Arizona 36 -- --- Arkansas 6/31 days $400 ck 10% + $10 ° California 546/0 Colorado _/30 days $300 ck 15%ofck 459 Connecticut" 28.52 NA $500 ck $25 650 Delaware — NA Florida 3 NA 10% + $5 --- — 57.68 - Georgia* 419 Hawa_ dahoit _/31 days $300ck 15% ofck 459 Illinois -- — --- Indiana 36 __ KIowa --- _/31 days $500 ck $15 first $1004 459 asas_/30 days $860 —5 390 KentuckyLouisi 14/60 days $500 ck $15 per$100 459 Maineana -- _/30 days $350 loan 16.75% ck 520 30 — Maryland 33 --- — Massachusetts' 39.86 _s -- Michigan 25 -- __ -- Minnesota — _/30 days $3501oan 5 390 Mississippi _/30 days $400 ck 18% ck 572 Missouri 14 days/10 mo. $500loan $15 per $100 390 Montana /31 da s Nebraska — Y $300 loan 25% 871 _/31 days $500 ck $I5 per $100 459 Nevada NAS%7 NA New Hampshire8 24 New Jersey 30 _ Pennsylvania' 23.75 Rhode Island 36 -- _ _ South Carolina --- /31 days $300loan 15% ck 459 South Dakota — — — Tennessee _/31 _ _ days $500 ck 15% ck 459 Texas 31.65 — Utah - _ NA NA No limits Vermont 24 -- Virginia' 36 _- -- Washington /31 days 15% — — West Virginia` 31 — s -y $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. 5Scale 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. 8Effective 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. New Mexico New York' 25 North Carolina — /31 days $300 ck 15% ck North Dakota 30 459 Ohio — _/6 mo. $500 loan 5%/$5-$50 390 Oklahoma 30 days/NA $102 --5 364 Okl gho— — 00114 East Valley Parkway Plan forwarded to City Council I Escondido to consider restricting businesses; [NI Edition] Craig Gustafson. The San Diego Union - Tribune. San Diego, Calif.: Sep 16, 2004. pg. NI.1 . �R�,v? �;�i�e4iS_E". �'_,,. &Il.�iy <R m ,a".. 9,.. ,.. ... ,>, �:'. _ ...i ,.,.�..'Zitk �, .. ,.�� t, ,'°��."�a.Ss�✓�^i4 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 tul 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 t-/ 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." TheCityCouncil 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 0 01 113 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 "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. 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. "It's 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. 00117 "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 tal 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 acuert s1 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. WaI-Mart has applied to build a store adjacent to the Home Depot. 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:ronald.n.johnsonl()navy.milj 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.johnson1@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); Tarbeil, Nancy A. CONT (CNRSW); Bromberek, Stephen LCDR NRSW/FFCDS 14.50; Jacques, Bernard CNOCM Cc: Greer, Henry A CTR CNRSW ,N60; Macdonald, Scot CIV COMNAVREGSW N6OCR; Groveman, Jon LT COMNAVREGSW Public Affairs; Yost, Jacqule C CAPT (CNRSW PAO); Clove, Ronald CAPT (SJA); Hall, Eugene CTR; Cochran, Barry NASF; Sullivan, Usa 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 late 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 001 22 Total Respondents: Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 2150 Public 1616 75.16% CAC .., ` 24.84% el-e3 29 : 4' F 3 1.53% e4-e6 273 i, 89x 16.84% e7-e9 29 � z �,� �1`�"��' -� n 2.05% 01-02 3 mrn 0.23% 03-04 4 0.33% 05-06 0 ___ ... 0.09% 15 0 is good service - yes 358 9 *�= $.._" € 20.93% is good serviceF ry no 934 59.16% APR 1310 80.79% ryrF","1R1}g1 Y5L change decision 1013 � g ' . 62.88% savings 7954= g6 50.28% i i t aware assistance 1370 ° -484 86.23% Q10 Q11 Q12 CFS 1168 74.09% IYIVIVI W excellent 275 X ,. fr 17.53% above avg 174 11.63% avg 231 13.81% below avg 51 �y Eli o 4.00 /° unsatisfactory 103� .:' 6.23% na 782 4n= 46.79% paid late fees method of paying Q13 Q14 Q15 588 35.26% 4111J allotment 817 42.—: 49.26% check 1027 4 64.93% debit 490 29.44% money order 167 9.63% online banking 1028 65.53% found out 1237 £87 " 75.53% Credit Card APR 1455 91.26% 133 Rudy Hradecky rom: 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 pdl law 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 Tiolation 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 (Ca1.App.l.Dist., 1963). A payday lender zoning rule was proposed for Columbia, SC in 2004. attached is a chart that Jim Walr.ath from legal services in Milwaukee put together. 00125 (39 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\OLKSPDL LAW LEG CHART WALRATH. WPD 0012F (3S CFA 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 Lending 113004.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/pdlrentabankreport.pdf "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/oaydayreport.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.asp?id2=5043&id3=USPIRG& "Safe Harbor for Usury: Recent Developments in Payday Lending," Consumer Federation of America, September 1999 www. 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.uftedu/faculty/peterson/publications.shtml 00127 (3W "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://predatorylendin g.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.) ,t_p://www.consumerlaw.org/initiatives/military/content/report military .pdf NCLC/CFA Model State Payday Loan Law www.ncic.org/initiatives/payday loans/paydayac.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.ord/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). 2 00128 /37 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%20RELEAS 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-Payday 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/ddlarinrot2004.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 hho://woodstockinst.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-fmance.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/paydaymayday.pdf "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/NCDis_pImpact.cfm 4 00130 13q "Season in Review" Community Reinvestment Association of North Carolina, 2004 www.cra-nc.ore/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.ore/small%201oans%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-fla ler.unc.edu/assets/documents/CC Pa da-lendin . df "Welfare, Work, and Banking: The North Carolina Financial Services Survey" Michael A. Stedman & Robert Faris, Oct. 2001 www.kenan-fla ler.unc.edu/assets/documents/CC welfare. df North Carolina Report to the General Assembly on Payday Lending Office of the Commissioner of Banks, North Carolina, February 2001 www.bankin state nc.us Oklahoma "Oklahoma Deferred Deposit Program: Program Effectiveness Report" Oklahoma Office of Consumer Credit Commissioner, November 2004 www.okdocc.state.ok.us/OKVeritecDBNov2004. df 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 0 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.gov/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/newsroom/Dress/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/fringelendinghtm "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. uinnipeg. c a/web/faculty/ius/iusweb/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/epi c/intemet/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 . html "Payday Loans = Costly Cash" Federal Trade Commission Consumer Alert www.ftc. gov/bcp/confine/pubs/alerts/pdayalrt.pdf 7 06133 ! L2 "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 ILO 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 ANDTRANSACTIONS 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 Taws 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 lLt 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 <<g 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 salaries; 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 lye 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 Severabilitv. 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 City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE August 16, 700S AGENDA ITEM NO. 23 (-ITEM TITLE Plaza Boulevard Widening Project Status Report and Resolution of the City Council of National City approving, and authorizing the City Engineer and Planning Director to execute the Initial Study with Proposed Mitigated Negative Declaration/Environmental Assessment with a Finding of No Sig�nnificant Impact PREPARED BY Din Daneshfar DEPARTMENT Engineering EXT. /1387 EXPLANATION See attached explanation. ( Environmental Review X N/A MIS Approval Financial Statement N/A Approved By: Finance Director Account No. STAFF RECOMMENDATION Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. 1. Resolution 2. Project Milestone Schedule 3. Environmental Document A-200 (Rev. 7/03) RESOLUTION 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE INITIAL STUDY WITH PROPOSED MITIGATED NEGATIVE DECLARATION/ENVIRONMENTAL ASSESSMENT WITH A FINDING OF NO SIGNIFICANT IMPACT FOR THE PLAZA BOULEVARD WIDENING PROJECT, AND AUTHORIZING THE CITY ENGINEER AND PLANNING DIRECTOR TO EXECUTE SAME WHEREAS, the Plaza Boulevard Widening Project proposes to widen approximately 1.1 miles of Plaza Boulevard in the eastbound and west bound directions between Highland Avenue on the west and Euclid Avenue on the east, including a segment under Interstate 805, which will increase the current four lanes to six lanes, consistent with its Circulation Element in the National City General Plan; and WHEREAS, the Initial Study with Proposed Mitigated Negative Declaration/Environmental Assessment with a Finding of No Significant Impact for the Plaza Boulevard Widening Project must be approved by the City Council before it is submitted to CalTrans and the Federal Highway Administration ("FHA") and circulated for public comment. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves the Initial Study with Proposed Mitigated Negative Declaration/Environmental Assessment with a Finding of No Significant Impact for the Plaza Boulevard Widening Project. BE IT FURTHER RESOLVED that the City Council hereby authorizes the City Engineer and the Planning Director to execute the same. PASSED and ADOPTED this 16th day of August, 2005. ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney Nick Inzunza, Mayor RE: Plaza Boulevard Widening Project Status Report and Resolution of the City Council of National City approving, and authorizing the City Engineer and Planning Director to execute the Initial Study with Proposed Mitigated Negative Declaration/Environmental Assessment with a Finding of No Significant Impact Background - The Plaza Boulevard project proposes to widen approximately 1.1 miles of Plaza Boulevard in the eastbound and westbound directions between Highland Avenue on the west and Euclid Avenue on the east, including a segment under Interstate 805 (I-805). The project would widen Plaza Boulevard from its present four lanes to six lanes, consistent with its Circulation Element in the National City General Plan. The proposed improvements would take place primarily on the northern side of Plaza Boulevard, with some widening proposed along the south side. The purpose of widening portions of Plaza Boulevard is to add capacity and reduce existing congestion, decrease traffic delays, and maintain continuity in Levels of Service (LOS) established by the City. Traffic safety is also a factor in justifying the project based a higher than average number of traffic accidents within the project limits. The existing 4-lane roadway has insufficient capacity for handling present and future travel demand. With the project, the operation of these roadway segments would improve to an acceptable or better level of service through 2030. This level is consistent with the level recommended in the City of National City Traffic Design Standards. The poor operation of Plaza Boulevard is aggravated by operational conflicts between autos and trucks, the absence of alternative routes, and the lack of multimodal alternatives other than buses for meeting commercial and residential travel demand. The proposed action would include a construction staging area, possibly at a vacant lot west of Money Gram Check Cash or a vacant lot west of Jimmy's Family Restaurant; noise walls at two locations, a retaining wall along an existing concrete -lined drainage channel, and miscellaneous retaining walls along the route. In addition to the road widening, the project will include the following improvements: culvert extensions, retaining walls, noise walls, landscaping, utility relocations, raised median, striping, and signage. The cost of the project is estimated to be over $10 million. The cost estimate is currently being reviewed due to recent increases in the unit costs of concrete and steel. Engineering Approval - Due to design restrictions no parking lanes are included in the 6- lane Prime Arterial roadway. Plaza Boulevard crosses state right of way at the Interstate 805 (I-805) interchange. State design standards include 12-foot wide lanes with 8-foot wide shoulders. The horizontal alignment of Plaza Boulevard will be modified from the existing centerline alignment to meet the requirements for a 6-lane Prime -Arterial. New alignment modifications are intended to avoid and/or minimize site impacts to structures fronting Plaza Boulevard, minimize impacts to recent site improvements made by the City, minimize impacts to utilities and private facilities, avoid encroachments into the canal located west of Euclid Avenue, maintain existing sidewalks where feasible, minimize impacts within state right of way as well as meet state design standards, and apportion impacts to properties fronting the Plaza Boulevard alignment. Design Alternatives - Three alternatives have been developed by Dokken Engineering. Each alternative includes three through lanes in each direction, a sidewalk on both sides, and a raised/striped median. Median widths vary between alternatives to avoid impacts to structures and parking lots. Each alternative studied required retaining walls at the I-805 undercrossing located within the state right of way. 1 Alternative 1 Alternative 1 utilizes the required standard typical cross-section and minimum horizontal radius curve for a six -lane Prime -Arterial between Highland Avenue and Euclid Avenue. The purpose of this alternative is to identify impacts resulting from constructing the standard typical cross-section and minimum horizontal radius curve through the project limits. Five structures are impacted by this alternative. The structures include City Dental Center (northwest quadrant of Plaza Boulevard/Highland Avenue), Money Gram Check Cash (southwest quadrant of Plaza Boulevard/Highland Avenue), AM/PM ARCO Gas Station (southwest quadrant of Plaza Boulevard/Palm Avenue), Bay Vista College of Beauty (next to AM/PM ARCO gas station), and the Eye Care Association (northwest quadrant of Plaza Boulevard/Highland Avenue). Alternative 2 Alternative 2 is a modification of Alternative 1 and utilizes a full standard typical section and standard horizontal radius curve for the majority of the project corridor. Two curves utilize non-standard horizontal radius curves. The purpose of this alternative is to reduce impacts to structure while maintaining the standard typical section as much as possible. Alternative 2 widening improvements tie into the existing lane configuration east instead of west Highland Avenue. This new join location eliminated impacts to the City Dental Center and Money Gram Check Cash buildings located west of the Highland Avenue intersection. Additionally, this reduced impacts to the driveways to the Firestone and Yardage Town businesses located at the northeast corner of the Plaza Boulevard/Highland Avenue intersection. To avoid impacts to the AM/PM ARCO gas station and Bay Vista College of Beauty, two radius curves (500 ft/800 ft) were reduced from the City standard of 1000 ft. However, one structure impacted by this alternative is the Eye Care Association building located at the intersection of Plaza Boulevard/Palm Avenue which will need to be removed. Alternative 3 Alternative 3 is a modification of Alternative 2 and varies the full standard typical section throughout the project corridor. One curve utilizes a non-standard radius horizontal curve. The purpose of this alternative is to avoid all structures. In order to avoid affecting structures, a combination of varying median widths and a compound curve were used. Raised medians were used where applicable. In areas where the raised median would adversely affect roadway width and adjacent structures, a striped median was used. The combination of these parameters avoided affecting the AM/PM ARCO gas station, Bay Vista College of Beauty, and Eye Care Associates buildings at the Plaza Boulevard/Palm Avenue intersection and the Casa Toledo Apartment Complex, Econo Lodge, Maharlika Cafe & Grill, California Produce, and Jimmy's Family Restaurant between Palm Avenue and I-805. Additionally, 2-foot striped medians and 5-foot sidewalks were used to avoid these structures. Overall, this alternative has the least driveway, parking lot and right-of- way impacts and is the preferred alternative in the environmental document. Alternatives Summary - Alternative 1: Full standard typical section including 14-foot planted medians and 6- foot wide sidewalks for the entire length of the project. This Alternative has the highest cost and extensive right of way impacts. 2 Alternative 2: Full standard typical section as described in Alternative 1. To avoid impacts to the AM/PM ARCO gas station and Bay Vista College of Beauty, two radius curves (500 ft/800 feet) were reduced from the City standard of 1000 feet. Alternative 3: Alternative 3 is a modification of Alternative 2 and varies the full standard typical section throughout the project corridor. The purpose of this alternative is to avoid all structures. Raised medians were used where applicable, but in areas where the raised median would adversely affect roadway width and adjacent structures, a combination of 2-foot striped medians, varying median widths and 5- foot sidewalks were used to avoid structures and right of way impacts. Retaining walls were also used to minimize or eliminate property impacts. This alternative has been selected by the City for this project which has the lowest cost and the least driveway parking lot, and right of way impacts. Engineering Studies - Dokken Engineering has completed numerous design studies to obtain required approvals, determine the scope of the project, and develop cost estimates. The studies included the development of preliminary roadway geometries, including the roadway profile, to aid in the development of the project "footprint." Using this information, right of way requirements and utility impacts were determined. A Structures Advance Planning Study (APS) was completed to determine the feasibility of the roadway widening at the I-805 Interchange through the use of tie -back walls near the bridge abutments. A preliminary drainage design and a Storm Water Data Report (SWDR) were developed to obtain approval of storm water handling designs. A right of way requirements map was developed for each of the three alternatives identified above. A complete cost estimate was also developed for each of the alternatives to aid in the determination of the preferred alternative. Dokken Engineering has also worked closely with City Engineering Staff to review proposed development to ensure that the footprint of the project will not be adversely affected by any new development along Plaza Blvd. Combined PSR/PR Approval - Concurrent with the environmental document process and in accordance with Caltrans project development procedures, a Combined Project Study Report/ Project Report (PSR/PR), Design Exception Fact Sheets and a revised Traffic Study were completed by Dokken Engineering and submitted for review to Caltrans staff on March 15, 2005. Comments on these documents were received from Caltrans on May, 15, 2005. Responses to the comments were submitted to Caltrans on July 18, 2005. Once the environmental documents are approved, the Combined PSR/PR will also be approved. During this phase, Dokken Engineering successfully completed a Visual Impact Assessment (VIA) to meet new approval requirements as mandated by Caltrans. Environmental Document Approval - All environmental technical studies, including a traffic study have been completed. The draft Environmental Document (ED) which is an Initial Study/Environmental Assessment (IS/EA) has also been completed. All the documents were submitted to Federal Highway Administration (FHWA) by Caltrans on April 18, 2005. Comments on the documents were received from FHWA on May 31, 2005. Responses to the FHWA comments were prepared and submitted to Caltrans on June 30, 2005. The responses are currently being reviewed by Caltrans and FHWA. We believe that the environmental document will be approved for public circulation in late August. After the public review period, approval under CEQA may be initiated by the City in the form of a Mitigated Negative Declaration (MND). In addition, a Finding of No Significant 3 Impact (FONSI) under NEPA may be approved by FHWA. We believe that environmental approval will be obtained by December 2005. Right of Way Acquisition/Final Design - Upon completion of the Environmental Document and approval of the Combined PSR/PR, right of way acquisition and final design can commence. Right of way acquisition is the critical path item for completion of this phase. Once the right of way acquisition is approved, construction of the project can be initiated. Financial - The funding is available for the right-of-way acquisition and final design through Federal (RSTP) and Local TransNet funds (with the ratios of approximately 88% Federal and 12% Local TransNet). Construction - Subject to the availability of construction funding, the project will be advertised in July 2007 and the construction contract awarded in October of 2007. Construction will be complete and the project will open to traffic in December of 2008. Recommendation Staff has recommended that the Environmental Document (attached) be approved to meet the December 2005 deadline since the City's approved Environmental document will be required before the FHWA's approval. Attachment A Project Milestone Schedule and the Environmental Document are attached. 4 1)OKKEN Plaza Blvd Milestone Schedule io Task Nome sbn Fwps i Plaza Blvd h ileslme Schedule Tue 0115/05 Moo 12lII0e sec zco5 yen 1 'MZ I sec toad 2007 n° 1 IAr I sea 1... T 2ooe I 0 Submit Comb.. P$R/RR- Fad Shoals Tue WASPS Toe03/15.5 Gisana pus.. Wed 03/)Ng5 Tue 05/31. Subg0CpttlnNP8R1%1.FHWwb °Lisps CY0.. IY] 1 Sou m 1 Mn sp den 5 Pea,. P. to Cebats Cmtnmhu lz TCW0205 Men0]l18111$ OAPs. Resew Rep.. In Cornma.N Wed 0]i20/05 R6Nw y;1115 Rum0W.e psndeee* 7111,5 / O 9 10 _ _ It 12 1- Toe 01427N5 Calearu'Apprwal %o3a¢ Thu0Ye9A5 W. 1Y11 A5 StMni/EOIoSHWA A4nI1G1R'05 Mn(N/18W FHWA Resew Toe0di15A5 Tue 0.alRS ReeppM toFMWA� men. RUCb0=5 T.0N,0/05 amNFHnttent4lpaWA Re.5 b M R pme o07/0Gp$ Fn0112FA5 CC SHWA Approval bCirtWale Mn 0829413$ 1.btIMl29/JS Po01ic Revaov We] 011131/05 Tue10/1W005 MNDIFONSI Pppw, Prods Thu 1=0/5 W. savant BUWntm.FXWA - Ras,.le CYpsnWHWA Ra1Nw Repents* to Common Cel6ane MWoael 8°5 M. Scrim ;UM CH..Cam,.nb Rrv0aw ...on.. lc lC....)5- PIMA Approval bGINHq PUM1c1RSRaw 2 TA0i%J� Pmeav 9Z� 4.09 �,umam5 JJ 00,20005 1W0401 RUOs 1a /0 12I21A5 Ep-Combined PSR/2R Approval 1Tu12/2105 Thu12R245 Rw Nus'm AToe 12/7105 Mn 0]A2A] MNDrFMIDAvpuvY m040409N Fxna .--.7:.,h. PSRflt.spmr4 sr 40rUS N1N5 is RONwar P$8E TL¢'.22]A5 Ibn0702107 RWA".'"n t ;0;7;y1;-1;7-;-6-., -- 'Rwh'aY ,t , ].T,..2R...a PsaE ITY%'rT/] l'!"/%"/'Tl'/'`/2'lYY/ZYi" /YY2}-("" 0 ]�] IY to Approval to Car... Tue 0710=7 rue 07103N 0Aratise FYgm Thu 0'/.'65/07 Wed 1024L71 ApF/orYm Cmputl 07A11/07 AMHW Fa4anF 9 pWYN °Conudion Contract TM/1tl2SV] Thu 102S01 �i>>'17hi ANmW -�1°a10QM1 �:o- Sun., Pro, hb 10/2507 f012/14LW waCeulan a open To Traffic - I+Y•Y i. S ` n • • • 1 .. _ a _ _ . _ _ I . / _ . i . i i I 1.1 12122. Mn 1z"201' Won To Traffic loam Plaza Boulevard Widening, City of National City Initial Study with Proposed Mitigated Negative Declaration/ Environmental Assessment with Finding of No Significant Impact (IS-2003-7) City of National City San Diego County Plaza Boulevard, from Highland Avenue To east of Euclid Avenue 11-SD-805 .�Ullt 2005 i 0 STATES OF P� The City of National City proposes to widen approximately 1.8 kilometers (1.1 miles) of Plaza Boulevard in the eastbound and westbound directions between Highland Avenue on the wes0108t and Euclid Avenue on the east, including a segment under Interstate 805 (I-805), in National City, San Diego County, California. Deleted: April General Information About This Document What's in this document? This is a joint National Environmental Policy Act (NEPA)/California Environmental Quality Act (CEQA) document that examines the potential environmental impacts of alternatives for the proposed project located in the City of National City, San Diego County, California. The lead agency in compliance with NEPA is the Federal Highway, Administration (FHWA). The lead agency in compliance with CEQA is the City of National City. The California Department of Transportation serves as FHWA agent providing review and oversight of document preparation. The document describes why the project is being proposed, alternative methods for constructing the project, the each of the alternatives. What should you do? • Please read this Environmental Assessment/Initial Study. • We welcome your comments. If you have any concerns regarding the proposed project, please attend the Public Information Meeting and/or send your written comments to the City of National City by the deadline. Submit comments via regular mail to the City of National City, Attn: Din Daneshfar, 1243 National City Boulevard, National City, CA 91950-4301; submit comments via email to Din Daneshfar: ddaneshfar@ci.national-city.ca/us • Submit comments by the deadline: What happens after this? After comments are received from the public and reviewing agencies, the City of National City may (1) give environmental approval to the proposed project, (2) undertake additional environmental studies, or (3) abandon the project. If the project were given environmental approval and funding were appropriated, the City of National City could design and construct all or part of the project. For individuals with sensory disabilities, this document is available in Braille, large print, on audiocassette, or computer disk. To obtain a copy in one of these alternate formats, please call or write to City of National City, Din Daneshfar, 1243 National City Boulevard, National City, CA 91950-4301; (619) 336-4380 Voice. 1 1 1 a 11 11 11 I1 [11-SD-805-[KP9 ([PMK) [EA number] Plaza Boulevard, Highland Avenue to east of Euclid Avenue, National City, California DRAFT ENVIRONMENTAL ASSESSMENT/ INITIAL STUDY (IS-2003-7) for Plaza Boulevard Widening Submitted Pursuant to: (State) Division 13, Public Resources Code (Federal) 42 USC 4332(2XC) Date of Approval Date of Approval Date of Approval Date of Approval U.S. DEPARTMENT OF TRANSPORTATION Federal Highway Administration, and THE STATE OF CALIFORNIA Department of Transportation CITY OF NATIONAL CITY Steve Kirkpatrick City Engineer City of National City Pedro Orso-Delgado District 11 Director California Department of Transportation Division Administrator Federal Highway Administration Roger Post Planning Director City of National City Abstract The project involves widening approximately 1.8 kilometers (1.1 miles) of Plaza Boulevard in the eastbound and westbound directions between Highland Avenue on the west and Euclid Avenue on the east, including a segment under Interstate 805 (1-805), in National City, San Diego County, California. Plaza Boulevard Widening Environmental AssessmenUlnitial Study 1 K140 Plaza Blvd EA_ISI.doc 7/27/2005 ur I. - - Deleted: Gary Hamby This page intentionally left blank. iv Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza Blvd PA_151. dac 7/27/2005 11 0 11 0 11 11 0 3 1 LJ 11 1 Mitigated Negative Declaration I City of National City Engineering Department SCH Number: [enter number] 11-SD-805-[KP] State of California ([PM]) Department of Transportation Proposed Mitigated Negative Declaration Pursuant to the California Environmental Quality Act (Division 13, Public Resources Code) and ICity of National City Environmental Guidelines, May 1988 I Project Description The City of National City proposes to widen approximately 1.8 kilometers (1.1 miles) of Plaza Boulevard in the eastbound and westbound directions between Highland I Avenue on the west and Euclid Avenue on the east, including a segment under Interstate 805 (I-805), in National City, San Diego County, California. This project would widen Plaza Boulevard from its present four lanes to six lanes, consistent with its Circulation Element status in the National City General Plan. The purpose of the widening of portions of Plaza Boulevard would be to add capacity and reduce 3 existing congestion, decrease traffic delays, and maintain continuity in levels of service (LOS) established by the City of National City. Traffic safety is also a factor in justifying the project based on data related to a high number of traffic accidents on r the roadway. The existing four -lane roadway has insufficient capacity for handling present and future travel demand. Three segments of Plaza Boulevard currently have a Level of Service (LOS) D: (1) N Avenue to Palm Avenue, (2) Palm Avenue to I- li 805, and (3) Grove Street to Euclid Avenue. LOS will degrade substantially (LOS E) without the addition of two lanes. With the project, these lanes would improve to LOS C or better through year 2030. These levels are consistent with the levels 3 recommended in the City of National City Traffic Design Standards. The situation is aggravated by operational conflicts between autos and trucks, the absence of alternative routes, and the lack of multimodal alternatives other than buses for meeting commercial and residential travel demand. As a result, travelers and 111 goods movement experience delays and increased travel costs related to capacity constraints and operational deficiencies existing in the corridor. The proposed widening of Plaza Boulevard for approximately 1.8 kilometers (1.1 miles) from Highland Avenue east to just beyond Euclid Avenue and would add ] Plaza Boulevard Widening Environmental Assessment/Initial Study I K 190 Plaza Blvd EA 15/.doc 7/27/2005 Mitigated Negative Declaration two extra traffic lanes, configured as recommended in the Traffic Impact Analysis (Appendix G), to the existing four lanes (one on each side of the roadway). The proposed improvements would take place primarily on the northern side of Plaza Boulevard, with some widening proposed along the south side. The additional lanes are needed to allow a more efficient traffic flow. The proposed action would include a construction staging area, possibly at a vacant lot west of Money Gram Check Cash or a vacant lot west of Jimmy's Family Restaurant; noise walls at two locations, a retaining wall along an existing concrete - lined drainage channel, and miscellaneous retaining walls along the route. In addition to the road widening, the project would include the following improvements: culvert median, striping, and signage. Construction is expected to start in July 2006 and end in May 2007. Applicant: City of National City (Case File No. IS-2003-7) Address of Project: Plaza Boulevard between Highland Avenue and Euclid Avenue, National City, San Diego County, Califomia. Project Discussion The City of National City has prepared an Initial Study and, pending public review, will determine from this study that the proposed project would not have a significant effect on the environment for the following reasons: • The proposed project would not substantially affect topography, seismic exposure, erosion, floodplains, wetlands, or water quality. • The proposed project would not significantly affect natural vegetation; wetlands and "waters of the U.S."; sensitive, endangered, or threatened plant or wildlife - species; or agricultural lands. • The proposed project would not significantly affect solid waste, consumption of energy, or natural resources. • The proposed project would not significantly affect land use, public facilities, or other socioeconomics -related features. • The proposed project would not significantly affect cultural resources, open space, or parklands. vi Plaza Boulevard Widening Environmental Assessment/Initial Study IK140 Plaza Blvd EA_IS 1. doc 7/272005 r i1 trt � i i 1I 1 3 1 1 1 11 a Mitigated Negative Declaration • The proposed project would have no significantly adverse effects on air quality, noise, hydrology, scenic resources/aesthetics, hazardous materials, and parking because the following mitigation measures would reduce potential effects to below a level of significance. • The proposed project will require approval of a design exception fact sheet for non-standard corner sight distance at the I-805 ramps/Plaza Boulevard intersections. Proposed Environmental Findings That the Proposed Mitigated Negative Declaration (IS-2003-7) has been considered together with any comments received during the public review process, and that based on the whole record (including the Initial Study and any comments received) there is no substantial evidence that the project will have a significant effect on the environment and that the Mitigated Negative Declaration reflects the California Department of Transportation and the City of National City's independent judgment and analysis. A copy of the Initial Study documenting reasons to support the findings is attached in Appendix A (IS-2003-7). Measures Proposed to Mitigate and Minimize Environmental Impacts The following measures are included as part of the project design and implementation. These measures address potential impacts to identified environmental resources. Air Quality The following measures would mitigate air quality -related impacts: • Minimize land disturbance during construction. • Use watering trucks to minimize dust; watering should be sufficient to confine dust plumes to the project work areas. • Suspend grading and earth moving when wind gusts exceed 25 miles per hour unless the soil is wet enough to prevent dust plumes. Plaza Boulevard Widening Environmental Assessment/Initial Study IK 140 Plaza DMZ EA_IS 1. doc 7/27/2005 vii lZ Mitigated Negative Declaration • Cover trucks when hauling dirt. • Stabilize the surface of dirt piles if not removed immediately. • Limit vehicular paths on unpaved surfaces and stabilize any temporary roads. • Minimize unnecessary vehicular and machinery activities. • Sweep paved streets at least once per day where there is evidence of dirt that has been carried onto the roadway. • Revegetate disturbed land in kind, including vehicular paths created during • Remove unused material. The following measure would minimize exposure to diesel particulate emissions: • Locate construction equipment and truck staging and maintenance areas as far as feasible and nominally downwind of schools, active recreation areas, and other areas of high population density. Noise Future noise would be mitigated by the following measure: • Noise abatement at impacted receptors, which include a motel swimming pool and two single-family residences, can be accomplished by construction of sound barriers where reasonable, to achieve a minimum 5-dBA reduction. Construction noise control measures would include the following: • Limit construction to between 7 a.m. and 7 p.tn. weekdays and Saturdays (Title 12 of the National City Code), wherever feasible, to minimize night noise generation. • Notify residents and business owners in advance of planned work near their properties. • Require contractors and subcontractors with haul trucks to have and maintain mufflers of original equipment grade or better on all engines. viii Plaza Boulevard Widening Environmental AssessmenUlnitial Study 1K140 Plaza BNOEA ISl.doc 7,272005 13 Mitigated Negative Declaration 1 1 11 a 11 • Require the use of solar- or battery -powered traffic control devices (such as lighted signs) when located within 150 meters (500 feet) of residences. Do not use internal combustion engines for such devices. • Apply the noise ordinance limits to hours of construction in staging areas. • For anticipated nighttime construction, require the contractor to take extra measures to minimize the noise impact on nearby residences, including the following: - Prepare and implement a construction noise -monitoring plan. When excess noise levels are observed or likely to occur, take temporary abatement measures to reduce noise to acceptable levels such as recommended below. Machinery should be selected with noise control in mind. Noise levels vary widely between manufacturers and models for similar types of equipment. Some machines are specifically designed for low noise emissions. Inspect all equipment to ensure good working order. - Carefully consider placement of equipment. Merely orienting a truck such that its exhaust points away from a receptor can result in as much as 10 decibels of noise reduction. The contractor should take full advantage of the nearby freeway overpass for shielding such equipment as generators and compressors. Shield other equipment behind natural or man-made barriers as much as possible. Otherwise, place equipment as far as possible from sensitive receptors. Consider temporary noise barriers. Commercial scaffold -mounted curtains are available that are specifically designed for construction noise mitigation. Stacked bales of hay have also been successfully used as inexpensive barriers. The contractor should plan and execute work to minimize noise impacts by performing noisier activities during daylight hours and reserving quieter operations for those hours when disturbance by noise would be more noticeable.. Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plate Olvd EA IS1.000 7/27/2005 ix /7 Mitigated Negative Declaration Hydrology, Water Quality, and Stormwater Runoff • A Storm Water Pollution Prevention Plan (SWPPP) shall be prepared to address erosion control and sedimentation issues related to the grading aspect of the project. The SWPPP shall specify and describe the implementation process of all Best Management Practices (BMPs) that will address equipment operation and materials management, prevention of erosion, and prevention of sedimentation in onsite and downstream drainage swales. The City Engineer of National City shall ensure that the SWPPP is properly implemented, • The concrete -lined drainage on the eastern end of the project shall be protected from indirect impacts by utilizing BMPs to filter runoff and prevent include the use of straw wattles and gravel -filled burlap bags. An experienced environmental monitor shall inspect the placement and installation of the BMPs to ensure they are implemented properly and shall periodically inspect the BMPs during the construction process. • National City's National Pollution Discharge Elimination System (NPDES) permit (No. CA 50108758) requirements (Order No. 2001-01) shall be met. • National City Ordinance No. 2002-2213 and Standard Urban Runoff Mitigation Plan (SURMP) requirements shall be met. • Other measures may be adopted during the Regional Water Quality Control Board's Section 401 permit process. Hazardous Materials • At the time of construction, install a monitoring well to replace a well that must be abandoned within the area of widening at the Thrifty #105, 1606 East Plaza Boulevard. On -going monitoring of the well shall be the responsibility of the property owner. Visual Quality • Incorporation of utilities underground as identified in Resolution 91-221 (City of National City 1991) for the Plaza Boulevard Underground Utility District and extending that to encompass the entire proposed project. Plaza Boulevard Widening Environmental AssessmenUlnitial Study 1K140 Plate Blvd EA_IS1.dor, 7/27/2006 15 Mitigated Negative Declaration • Implementation of a landscape plan for the proposed Plaza Boulevard widening corridor with emphasis on roadway medians, driveway entrances, retaining and noise walls, and parking areas. This plan will be coordinated with the Community Development Commission for consistency with the proposed Philippine Village Improvements. • Incorporation of architecturally compatible sound attenuation barriers and retaining walls including anti -graffiti surfaces. • A Visual Impact Assessment (VIA) is included in Appendix M. Parking The following would mitigate loss of parking spaces at businesses along the route: Eye Care Associates mitigation shall consist of the following: • Change the parking regulation and provide angled parking on the south side of 12th Avenue fronting the property. The City shall work with the property owner to encourage reconfiguration of the parking lot to increase parking supply. This would include closing one of the three driveways to the site. • California Produce mitigation shall consist of the following: • Mediate a shared parking agreement with Jimmy's Family Restaurant for California Produce employee parking. • The City shall work with the property owner to encourage re -configuration of the parking lot by removing the existing gate/wall dividing the California Produce and Apartment Complex parking lots. Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza Blvd EA_IS1.doc 7/27/2005 xi Mitigated Negative Declaration Pedro Orso-Delgado District 11 Director California Department of Transportation Date [eve hiricpuirJet; Lae City of National City xii Plaza Boulevard Widening Environmental AssessmenUlnitial Study 1 K140 Plaza Blvd EA_lSl floc I/27/2005 Summary 1 k 1 1 a 1 11 11 11 Summary The City of National City propose to widen approximately 1.8 kilometers (1.1 miles) of Plaza Boulevard under Interstate 805 (I-805) and between Highland Avenue on the west and Euclid Avenue on the east in National City, San Diego County, California. This project would widen Plaza Boulevard from its present four lanes to six lanes, consistent with its Circulation Element status in the National City General Plan. The proposed project is subject to review under the California Environmental Quality Act (CEQA) of 1970, as amended (Public Resources Code [PRC] Section 21000 et seq.), and the National Environmental Policy Act (NEPA) of 1969, as amended (42 United States Code [U.S.C.] 4321 et seq.). The lead agency for CEQA compliance is the City of National City. The Lead Agency for NEPA compliance is the Federal Highway Administration (FHWA). The California Department of Transportation (Department) serves as FHWA agent providing review and oversight of document preparation. Purpose And Need The purpose of the proposed project is to widen portions of Plaza Boulevard to add capacity and reduce existing congestion, decrease traffic delays, improve traffic safety, and maintain continuity in levels of service (LOS) established by the City of National City. This project would increase the number of lanes from the existing four to six lanes where needed and would improve operational characteristics along the route. The existing four -lane roadway has insufficient capacity for handling present and future travel demand. The situation is aggravated by operational conflicts between autos and trucks, the absence of alternative routes, and the lack of multimodal alternatives other than buses for meeting commercial and residential travel demand. As a result, travelers and goods movement experience delays and increased travel - costs related to capacity constraints and operational deficiencies existing in the corridor. The current LOS along three segments of Plaza Boulevard is LOS D as follows: (1) from N Avenue to Palm Avenue, (2) from Palm Avenue to I-805, and (3) from Grove Street to Euclid Avenue. Future LOS will degrade substantially (to LOS E) without the addition of two lanes. With the project, these lanes would operate at Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza EMI EA_ISI doc 7/27/2005 ig Summary LOS C or better through the year 2030. These levels are consistent with the levels recommended in the City of National City Traffic Design Standards. Alternatives Three build alternatives have been identified for this project — Alternative 1, Alternative 2, and Altemative 3. Alternative 3 is the locally preferred alternative, since it would result in the least amount of physical impacts to the environment. Common features of all altematives include the use of a construction staging area, recommendations for construction of noise walls at two locations, a retaining wall adjacent to a concrete -lined drainage channel, and miscellaneous retaining walls ale.„; .0 vu�c i W J yvooaoiiiuCD ilal d uc:cli IUGLLLaiiCt It./1 L �..i�i11 ua c.a: a ulwli lot adjacent to and west of the business called Money Gram Check Cash; or, a vacant lot adjacent to and west of Jimmy's Family Restaurant. All three alternatives are discussed in detail below. In addition, a No Action Altemative is discussed that assumes no improvements would be made to Plaza Boulevard. Alternative 1 This alternative would widen Plaza Boulevard starting at a point approximately 213 meters (700 feet) west of Highland Avenue adjacent to Central Elementary School. Plaza Boulevard is classified as a Prime Arterial (6-lane facility) per the Circulation Element of the Citv General Plan, Currently Plaza Boulevard is constructed as a 4-lane M i_or Road v th_parl;intgenerally prohibited and a 2-way left -tuna lane to serve frontimi residential and coin mereialdevelopments. The widening in this area would provide the full 6-lane configuration on both east and west sides of the Plaza Boulevard/Highland Avenue intersection for improved traffic flow. Improvements to widen the road to six lanes start near the.1liehland Avenue intersection and end near the Euclid Avenue intersection. The project would continue eastward, primarily widening the south side of the roadway between Highland Avenue and Palm Avenue. Just east of the Palm Avenue intersection, widening would be on both sides of the street for a short section. Both sides of Plaza Boulevard under I-805 would be widened to allow for smooth traffic flow under the overpass. East of I-805 to Euclid Avenue, the widening would be mostly on the north side of the roadway. East of Euclid Avenue, widening would occur on the north side of Plaza Boulevard with minor improvements on the south side at the intersection of Plaza Boulevard and xiv Plaza Boulevard Widening Environmental Assessment/Initial Study 1 K i 40 Pleas Blvd EA_IS 1. doc 1/27/2005 m 11 :1 Summary Euclid Avenue. The project would end at an existing crosswalk prior to a row of single-family residences that line both sides of Plaza Boulevard. On ejtherside elf these intersections _(Highland A.vettue,..and Eucllid Averni ),1'lar;a Boulevard will rernam as a 4-lane Major Road. In the design horizon, year (2030) the transition from a 3-lane to 2-lane road. maintains an appropriate roadway segment Level of Service (LOSS A west of thelhglilatid Avenue intersection, and LOS l3 cast of theEuclid Avenue intersection_ In addition both. intersections operate at 1 OS C in 2030. _Therefore no further improvements beyond the_protei,t termini are required a5 project logical termini are a prophate. Palmer Way Elementary School is located near the eastern end of the project at a higher elevation than the roadway. A landscape plan, relocation of overhead utilities underground, and architectural treatment of walls would offset the visual impacts. Alternative 1 would be 1.83 km (1.14 mile) in length. There are two possible locations for staging areas: a vacant lot adjacent to and west of the business called Money Gram Check Cash; or, a vacant lot adjacent to and west of Jimmy's Family Restaurant. Noise walls may be needed near the Comfort Inn pool and at two single-family residences east of I-805. A retaining wall may also be required at the drainage channel immediately west of Euclid Avenue and at miscellaneous locations along the route. Due to the additional widening proposed at the Plaza Boulevard/Highland Avenue intersection, five structures would be physically affected by this alternative and would require removal — the City Dental Center, Money Gram Check Cash, the Bay Vista College of Beauty, Arco Smog Pros, and an Eye Care Associates building. In addition, parking spaces for existing businesses would be lost through implementation of this alternatives as shown in the following table. Plaza Boulevard Widening Environmental Assessment/Initial Study 51140 Plaza Blvd EA_IS1.doc 7/21/2005 xv Summary Alternative 1— Number of Parking Spaces Lost Location No. Parking Spaces Lost Western Dental 0 Eye Care Associates 3 Califomia Produce 6 Jimmy's Family Restaurant 14 Firestone 24 Casa Toledo Apartment Complex 15 Shopping Center (NW Quadrant -Euclid Avenue / Plaza Blvd) 37 Money Gram Check Cash 6 Payless Shoes 2 North side of Plaza Blvd east of Euclid Avenue (on street) 25 South side of Plaza Blvd east of Euclid Avenue (on street) 30 JUVI v::: UJnfiefI 20U3 Alternative 2 This alternative would widen Plaza Boulevard starting immediately east of the Highland Avenue intersection, which would be less than one -tenth of one kilometer east of the starting point for Alternative 1. There would be no construction in the area west of Highland Avenue near Central Elementary School as described in Alternative 1. Other improvements would generally be similar to those identified under Altemative 1, except this alternative would reduce the City of National City radius standards of 305 meters (1,000 feet) to 152 meters (500 feet) and 244 meters (800 feet) on the Plaza Boulevard curve west of Palm Avenue. This radius reduction would avoid impacts to the AM/PM ARCO gas station and Bay Vista College of Beauty. Planted medians would be provided at various locations throughout the project site. Altemative 2 would be 1.77 km (1.1 mile) in length. The project terminus would be at the same location as Alternative 1. Construction staging areas, noise walls, and a retaining wall would be located in the same areas as described for Alternative 1. This alternative would directly physically impact only one building, the Eye Care Associates building. Parking spaces for existing businesses would be lost through implementation of Altemative 2 as shown in the following table. xvi Plaza Boulevard Widening Environmental Assessment/Initial Study K140 Pleze 6 dE4_ISlthx 712712005 11 11 1 Summary 1 1 1 1 a 1 n 11 3 Alternative 2 — Number of Parking Spaces Lost Location No. Parking Spaces Lost Western Dental 4 Eye Care Associates 8 Califomia Produce 8 Jimmy's Family Restaurant 14 Firestone 0 Casa Toledo Apartment Complex 0 Shopping Center (NW Quadrant -Euclid Avenue / Plaza Blvd) 0 Money Gram Check Cash 0 Payless Shoes 0 North side of Plaza Blvd east of Euclid Avenue (on street) 25 South side of Plaza Blvd east of Euclid Avenue (on street) 30 Total 87 Source: Dokken 2003 Alternative 3 Similar to Altemative 2, this alternative would widen Plaza Boulevard beginning immediately east of the Highland Avenue intersection and would not include the area west of Highland Avenue near Central Elementary School. As a result of a slight shift of alignment, this alternative would avoid parking impacts to the Firestone Dealer and Yardage Town on the north side of Plaza Boulevard. Improvements would be similar to those identified under Alternatives 1 and 2, but with less widening in the area east of Euclid Avenue compared to Alternative 2 due to design differences. Planted medians would be provided at various locations throughout the project site. Alternative 3 would be 1.8 km (1.1 mile) in length. Alternative 3 would result in less physical impacts to structures compared with Alternatives 1 and 2 and, therefore, is the preferred alternative. Construction staging areas, noise walls, and retaining wall would be located in the same areas as described for Alternative 1. Alternative 3 would not physically affect any buildings along the route. Parking impacts would be less than under Alternatives 1 and 2, but some parking would still be removed as shown in the following table. Plaza Boulevard Widening Environmental Assessment/lnitial Study 1 K 140 Plsza Blvd BA_1S 1. duo 7/27,2005 xvii as Summary Alternative 3 — Number of Parking Spaces Lost Location No. Parking Spaces Lost Wherehouse 1 Westem Dental 3 Eye Care Associates 3 California Produce 6 Jimmy's Family Restaurant 15 Firestone 0 Casa Toledo Apartment Complex 0 Shopping Center (NW Quadrant -Euclid Avenue / Plaza Blvd) 0 Money Gram Check Cash 0 Payless Shoes 0 North side of Plaza Blvd east of Euclid Avenue (on street) 0 otal Source: Dokken 2003 oU No Action Alternative In addition to the three alternatives discussed above, the No Action Alternative is also being considered. The No Action Alternative assumes that no part of the proposed project would be constructed. Environmental Impacts And Measures To Minimize Harm With the proposed project, no impacts would occur to land use; Section 4(f) resources; farmland; social and economic resources; hydrology, water quality, stormwater runoff; wetlands and waters of the U.S.; biological resources; floodplains; wild and scenic rivers; coastal barriers; the coastal zone; threatened and endangered species; historic and archaeological preservation; cumulative impacts; and growth induction. With the proposed project, the following environmental issues would be raised: Air Quality — Construction -level air quality impacts would occur and can be mitigated through implementation of standard air quality measures during construction. Noise — Construction noise impacts would occur and can be mitigated through implementation of standard noise measures during construction. Operational noise impacts would occur at one outdoor use and two single-family residences. Impacts can be attenuated through construction of noise walls. xviii Plaza Boulevard Widening Environmental Assessment/Initial Study IK140 Plate Blvd EA_/Sldoc 7/272005 r 23 Summary 1 1 1 ri i T Hazardous Materials — Hazardous materials impacts would occur and can be mitigated through the use of a secondary containment at the Arco Smog Pros, and through installation of a new monitoring well to replace a well that would be destroyed by the project within the area of widening at Thrifty Gas Station #105, 1606 East Plaza Boulevard. Visual Resources — Roadway improvements would result in the construction of retaining walls and noise attenuation barriers and the elimination of existing landscaping along Plaza Boulevard. A landscape plan and relocation of overhead utilities underground would offset the visual impacts. Parking — Parking spaces would be lost with implementation of all three alternatives as outlined above. Implementation of parking lot re -configuration, changed parking angles, shared parking agreements, and parking gate removal would offset parking impacts. Summary of Major Potential Impacts from Alternatives Potential Impact Alternative 1 Alternative 2 Alternative 3 NoAction Alternative Alternative rnativ Land use Consistency with the National City General Plan Consistent Consistent Consistent Not consistent Farmland No impacts No impacts No impacts No impacts Social and economic Parking would be lost at 10 locations Parking would be lost at 6 locations Parking would be lost at 6 locations No impacts Relocation Business displacements Impacts would occur to 5 businesses Impacts would occur to 1 business No impacts to businesses would occur No impacts Housing displacements No impacts No impacts No impacts No impacts Utility service relocation Utilities would need to be relocated Utilities would need to be relocated Utilities would need to be relocated No impacts Air quality Construction- level air quality impacts would occur Construction- level air quality impacts would occur Construction - level air quality impacts would occur No impacts Noise Construction noise impacts and operations impacts to 1 outdoor use and 2 residences Construction noise impacts and operations impacts to 1 outdoor use and 2 residences Construction noise impacts and operations impacts to 1 outdoor use and 2 residences No impacts Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza Blvd EA_ISl. doc 7/27/2005 xix Summary Potential Impact Alternative 1 Alternative 2 Alternative 3 No Action Alternative Hydrology, water quality, and stormwater runoff No impacts No Impacts No impacts No impacts U.S. Wetlands and waters of the No impacts No Impacts No impacts No impacts Biological resources (wildlife and threatened and endangered species) No impacts No impacts No impacts No Impacts Floodplains No impacts No impacts No impacts No impacts Historic and archaeological preservation No impacts No impacts No Impacts No impacts Visual Roadway Improvements would involve retaining wall and noise attenuation barrier construction and elimination of existing landscape and removal of decorative slope paving along Plaza Boulevard. Roadway improvements would involve retaining wall and noise attenuation barrier construction and elimination of existing landscape and removal of decorative slope paving along Plaza Boulevard_ Roadway improvements would involve retaining wall and noise attenuation barrier construction and elimination of existing landscape and removal of decorative slope paving along Plaza Boulevard. No impacts Utilities/Emergency services No impacts No impacts No impacts No impacts Traffic and transportation Beneficial impact Beneficial impact Beneficial impact Geology, topography, and seismicity No impacts No impacts No impacts Traffic congestion would worsen No impacts Construction Cumulative impacts Temporary noise and air quality impacts None identified Temporary noise and air quality impacts None identified Temporary noise and air quality impacts None identified No impacts None identified Growth inducement Planned growth supported Planned growth supported Planned growth supported Planned growth not supported No areas of controversy and no unresolved issues with other agencies have been identified. XX Plaza Boulevard Widening Environmental AssessrnenNlnitial Study 1K140 Plaza Blvd EA IS1. doc 7/27/2005 iri t 1 Table of Contents Table of Contents Cover Sheet t Title Page iii Proposed Mitigated Negative Declaration iii Summary iii Table of Contents iii List of Figures iii List of Tables iii List of Abbreviated Terms iii Chapter 1 Purpose and Need 1-3 1.1 Introduction 1-3 1.2 Project Background 1-3 1.3 Project Description 1-3 Chapter 2 Alternatives 2-3 2.1 Alternative Development Process 2-3 2.1.1 Alternatives Considered and Eliminated 2-3 2.1.2 Alternatives Selected for Detailed Study 2-3 2.2 Project Alternatives 2-3 2.2.1 Alternative 1 2-3 2.2.2 Alternative 2 2-3 2.2.3 Alternative 3 2-3 2.2.4 No Action Alternative 2-3 Chapter 3 Affected Environment, Impacts, and Mitigation 3-3 3.1 Land Use 3-3 3.1.1 Affected Environment 3-3 3.1.2 Impacts 3-3 3.1.3 Mitigation 3-3 3.2 Farmland 3-3 3.2.1 Affected Environment 3-3 3.2.2 Impacts 3-3 3.2.3 Mitigation 3-3 3.3 Social, Economic, and Relocation 3-3 3.3.1 Affected Environment 3-3 3.3.2 Impacts 3-3 3.3.3 Mitigation 3-3 3.4 Air Quality 3-3 3.4.1 Affected Environment 3-3 3.4.2 Impacts 3-3 3.4.3 Mitigation 3-3 3.5 Noise 3-3 3.5.1 Affected Environment 3-3 3.5.2 Impacts 3-3 3.5.3 Noise Abatement Measures 3-3 3.6 Hydrology, Water Quality, Stormwater Runoff 3-3 3.6.1 Affected Environment 3-3 3.6.2 Impacts 3-3 3.6.3 Mitigation 3-3 3.7 Wetlands and Waters of the U.S. 3-3 Plaza Boulevard Widening Environmental Assessmendlnitial Study 11040 Plaza Blvd EA ISi. doc 7/27/2003 xxi Table of Contents 3.7.1 Affected Environment 3-3 3.7.2 Impacts 3-3 3.7.3 Mitigation 3-3 3.8 Biological Resources (Wildlife and Threatened and Endangered Species) 3-3 3.8.1 Affected Environment 3-3 3.8.2 Impacts 3-3 3.8.3 Mitigation 3-3 3.9 Floodplains 3-3 3.9.1 Affected Environment 3-3 3.9.2 Impacts 3-3 3.9.3 Mitigation 3-3 3.10 Historic and Archaeological Preservation 3-3 3.10.1 Affected Environment 3-3 ?.1 n 2 Tmnacrs 1-1 3.11 Hazardous Waste Sites 3-3 3.11.1 Affected Environment 3-3 3.11.2 Impacts 3-3 3.11.3 Mitigation 3-3 3.12 Visual Resources 3-3 3.12.1 Affected Environment 3-3 3.12.2 Impacts 3-3 3.12.3 Mitigation 3-3 3.13 Utilities/Emergency Services 3-3 3.13.1 Affected Environment 3-3 3.13.2 Impacts 3-3 3.13.3 Mitigation 3-3 3.14 Traffic and Transportation 3-3 3.14.1 Affected Environment 3-3 3.14.2 Impacts 3-3 3.14.3 Mitigation 3-3 3.15 Geology, Topography, and Seismicity 3-3 3.15.1 Affected Environment 3-3 3.15.2 Impacts 3-3 3.15.3 Mitigation 3-3 Chapter 4 Cumulative Impacts 4-3 4.1 Cumulative Projects 4-3 4.1.1 Paradise Valley Road Widening 4-3 4.1.2 Various Street Improvements and Signal Interconnections 4-3 4.1.3 WaI-Mart Project 4-3 4.1.4 Education Village 4-3 4.1.5 Paradise Valley Road Subdivision 4-3 4.1.6 Bonita Creek Specific Plan and Subdivision 4-3 4.1.7 Kalesa Walk Condominiums 4-3 4.1.8 Proposed Philippine Village 4-3 4.2 Analysis of Cumulative Impacts 4-3 4.2.1 Land Use and Community Resources 4-3 4.2.2 Social and Economic 4-3 4.2.3 Relocation 4-3 4.2.4 Climate and Air Quality 4-3 Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza Blvd EA_IS 1.doc 7/212005 Table of Contents 4.2.5 Noise 4-3 4.2.6 Hydrology, Water Quality, Stormwater Runoff 4-3 4.2.7 Biological Resources 4-3 4.2.8 Cultural Resources 4-3 4.2.9 Utilities/ Emergency Services 4-3 4.2.10 Visual Resources 4-3 4.2.11 Traffic Circulation and Parking 4-3 4.2.12 Geology and Soils 4-3 Chapter 5 List of Preparers 5-3 EDAW, Inc 5-3 Medlin & Associates 5-3 Dokken Engineering 5-3 Chapter 6 References 6-3 Appendix A CEQA Checklist A-3 Appendix B Coordination and Consultation B-3 Appendix C Title VI Policy Statement C-3 Appendix D Mitigation Monitoring Program D-3 Appendix E Parking Study E-3 Appendix F Air Quality F-3 Appendix G Traffic Impact Analysis G-3 Appendix H Noise H-3 Appendix 1 Biology 1-3 Appendix J Hydraulic Study 7-3 Appendix K Historic Property Survey Report/Historic Resources Evaluation Report/Negative Archaeological Survey Report K-3 Appendix L Initial Site Assessment (Hazardous Materials) L-3 Appendix M Visual Impact Assessment M-1 3 Plaza Boulevard Widening Environmental Assessment/Initial Study 11,100 Plaza Blvd EA_ISI.doc 7/27/2005 J List of Figures List of Figures Figure Page 1 Regional Location Map 1-3 2 Project Vicinity Map 1-3 3 Aerial Photo of the Project Site 1-3 4a Alternative 1 2-3 4b Alternative 1 2-3 5a Alternative 2 2-3 5b Alternative 2 2-3 6a Alternative 3 2-3 6b Alternative 3 2-3 xxiv Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza Blvd EA_ISI.doc 7/27/2005 r List of Tables r L. List of Tables Table $alig 2.2.1 Alternative 1 — Number of Parking Spaces Lost 2-3 2.2-2 Alternative 2 — Number of Parking Spaces Lost 2-3 2.2-3 Alternative 3 — Number of Parking Spaces Lost 2-3 3.4.1 Ambient Air Quality Summary San Diego - 12th Avenue Monitoring Station 3-3 3.5.1 Hourly Noise Level Criteria 3-3 3.5.2 Existing Noise Levels 3-3 3.5.3 Predicted Future Noise Levels for Build Alternatives 3-3 3.8.1 State- and Federally Listed Threatened or Endangered Species in the Vicinity of the Project Area 3-3 3.14.1 Average Daily Traffic and Level of Service — Plaza Boulevard 3-3 3.14.2 Existing and Future Signalized Intersection Operations 3-3 3.14-3 Existing and Future Intersecting Lane Vehicles Analysis 3-3 Plaza Boulevard Widening Environmental Assessment/Initial Study VN140 Plaza 500 EA_ISl.tloc 7/27/2005 xxv `7D Table of Contents This page intentionally left blank. xxvi Plaza Boulevard Widening Environmental Assessment/Initial Study 15140 Plaza Blvd EA IS 1. /Ioc 7/27/2005 L 1, List of Abbreviated Terms 1 1 1 1 0 a 11 11 List of Abbreviated Terms ADT average daily traffic APCD Air Pollution Control District APE Area of Potential Effect BMPs best management practices CAN cable television CEQA California Environmental Quality Act CNPS California Native Plant Society CO carbon monoxide dB decibel dBA A -weighted sound level EA Environmental Assessment EPA Environmental Protection Agency FHWA Federal Highway Administration HPSR Historic Properties Survey Report HRER Historic Resources Evaluation Report 1-5 Interstate 5 1-805 interstate 805 ILV Intersecting Lane Vehicles km kilometer(s) KP kilometer post L,1 Average noise level over a period of time LL&G Linscott, Law, and Greenspan LOS level of service NAC Noise Abatement Criteria NFH no frequent habitation NPDES National Pollutant Discharge Elimination System 03 ozone PM post mile PM10 particulate matter less than 10 microns in diameter PM2.5 particulate matter less than 2.5 microns in diameter RTIP Regional Transportation Improvement Program RTP Regional Transportation Plan SANDAG San Diego Association of Governments SDAB San Diego Air Basin SIP State Implementation Plan SWPPP Storm Water Pollution Prevention Plan TSM Transportation Systems Management USACE U.S. Army Corps of Engineers Plaza Boulevard Widening Environmental Assessment/Initial Study 15140 Plaza BNd EA_151. dcc 7/27/2005 xxvii List of Abbreviated Terms This page intentionally left blank. Plaza Boulevard Widening Environmental Assessment/Initial Study IK140 Plana Blvd EA IS1. doc 7/272005 11 D Id .3 Chapter 1 Purpose and Need Chapter 1 Purpose and Need 1.1 Introduction The City of National City propose to widen approximately 1.8 kilometers (km) (1.1 miles) of Plaza Boulevard under Interstate 805 (I-805) and between Highland Avenue on the west and Euclid Avenue on the east in National City, San Diego County, California. This project would widen Plaza Boulevard from its present four lanes to six lanes, consistent with its Circulation Element status in the National City General Plan. The proposed project is subject to review under the California Environmental Quality Act (CEQA) of 1970, as amended (Public Resources Code [PRC] Section 21000 et seq.), and the National Environmental Policy Act (NEPA) of 1969, as amended (42 United States Code [U.S.C.] 4321 et seq.). The lead agency for CEQA compliance is the City of National City. The Lead Agency for NEPA compliance is the Federal Highway Administration (FHWA). The California Department of Transportation (Department) serves as FHWA agent providing review and oversight of document preparation. As part of this Environmental Assessment/Initial Study (EA/IS), a CEQA checklist has been prepared as supporting documentation and is included as Appendix A. The purpose of the proposed project is to widen portions of Plaza Boulevard to add capacity and reduce existing congestion, decrease traffic delays, and maintain continuity in levels of service (LOS) established by the City of National City. Traffic safety is also a factor in justifying the project based on data related to a high number of traffic accidents on the roadway. Iere have been over 50 accidents per year, on the roadway segment proposed for improvement From.2000 to2002(City of National City 2003) 80 (r more ace icl:; nt p. r.`.,at ..p2003.and 2004 tcit}'...of National Cits'. M05). This project would increase the number of lanes from the existing four lanes to six lanes, where needed, and would improve operational characteristics and safety along the route. Figures 1, 2, and 3 are a regional location map, a project -specific location, and an aerial photo of the project site. The existing four -lane roadway has insufficient capacity for handling present and future travel demand. The situation is aggravated by operational conflicts between autos and trucks, the absence of alternative routes, and the lack of multimodal Plaza Boulevard idening Environmental Assessmentlnitial Study 11(140 Plaza EOM ISI.doc 1/27/2005 1-1 Deleted: In each of the last three years (2000-2002), t Chapter 1 Purpose and Need alternatives other than buses for meeting commercial and residential travel demand. As a result, travelers and goods movement experience delays and increased travel costs related to capacity constraints and operational deficiencies existing in the corridor. Roadway operating performance is typically described in terms of Level of Service (LOS). LOS is a letter designation, ranging from A through F, which describes the range of operating conditions on a particular type of roadway facility. LOS A and LOS B indicate generally free flow conditions, while LOS C describes stable traffic flow. LOS D indicates the beginning of traffic congestion, while LOS E describes conditions approaching operational failure. LOS F indicates heavily congested, stop- .-:J Council (SANTEC)/Institute of Transportation Engineers (ITE) Guidelines, LOS D is considered the minimum performance standard in the San Diego region. Three segments of Plaza Boulevard currently have LOS D: (1) N Avenue to Palm Avenue, (2) Palm Avenue to I-805, and (3) Grove Street to Euclid Avenue. LOS will degrade substantially (LOS E) without the addition of two lanes. With the project, these lanes would improve to LOS C or better through year 2030. These levels are consistent with the levels recommended in the City of National City Traffic Design Standards. 1.2 Project Background Plaza Boulevard travels roughly northeast to southwest between its intersection with Interstate 5 (I-5) in National City in the west and the junction with 8th Street to the east, where the roadway continues as Paradise Valley Road. In the project area, on -and off -ramps provide access from Plaza Boulevard to the northbound and southbound lanes of I-805. To allow easier reference to design materials, this report discusses Plaza Boulevard as running west to east. Plaza Boulevard intersects I-5 approximately 1.1 km (0.7 mile) west of Highland Avenue. Plaza Boulevard is identified in the National City General Plan Circulation Element as an Arterial with 4 to 6 lanes (City of National City 1996a). It is identified as a six - lane Prime Arterial in the National City Standards for Public Rights -of -Way and Public Improvements (City of National City 1992). LOS has been declining on this segment of Plaza Boulevard and will worsen as traffic increases in the future. For these reasons, the City of National City recognizes the need to widen Plaza Boulevard to improve LOS. 1-2 Plaza Boulevard Widening Environmental AssessmenUlnitial Study !XI 40 Plaza Blvd E4 IS 1. dx 7/27/2005 1 11 1 1 1 a 0 D Chapter 1 Purpose and Need 1.3 Project Description The proposed action is the widening of Plaza Boulevard in National City for approximately 1.8 km (1.1 miles) from Highland Avenue east to just beyond Euclid Avenue and would add two extra traffic lanes, configured as recommended in the Traffic Impact Analysis (Appendix G), to the existing four lanes (one on each side of the roadway). The proposed improvements would take place primarily on the northern side of Plaza Boulevard, with some widening proposed along the south side. The additional lanes are needed to allow a more efficient traffic flow. Traffic and transportation are discussed in greater detail in Section 3.14. The proposed action would include a construction staging area, possibly at a vacant lot west of Money Gram Check Cash or a vacant lot west of Jimmy's Family Restaurant; noise walls at two locations, a retaining wall along an existing concrete - lined drainage channel, and miscellaneous retaining walls along the route. Construction is expected to start in July 2006 and end in May 2007. The City of National City has developed three build alternatives for road improvements that are addressed in Section 2.2 of this Environmental Assessment. The proposed action will require coordination with the California Department of Fish and Game and the California Regional Water Quality Control Board regarding minor work on a proposed retaining wall along a concrete -lined drainage channel south of Plaza Boulevard. The United States Fish and Wildlife Service (USFWS) was consulted and concurred that there would be no adverse impacts to biological resources and no approvals were necessary (Appendix B, Coordination and Consultation). Plaza Boulevard Widening Environmental Assessment/Initial Study I KIdO Plaze Blvd EA_IS 1. doc 7/27/2005 1-3 r ORANGE COUNTY No Scale oa� Camp Pendleton •ei Fallbrook Del Mar PROJECT LOCATION RIVERSIDE COUNTY Rainbow SAN DIEGO COUNTY San Marcos Imperial Beach Palomar Mountain Lake Henshaw Valley Center (Lake Wohdord Escondido Rancho Bemardo Poway Lakesid Santee Sutherland Reservoir Ramona San Vicente Reservoir Lake Jennings ®( r7 Capitan Reservoir El Cajon Jamul Sweetwater Reservoir ational City q " Otay Reservoir Chula Vista San Ysidro Alpine 61 Loveland Reservoir Figure 1 Regional Location Map Plaza Boulevard Widening Environmental Assessment/Initial Study Graphrcs IK140.Plaza&Ade., dIFigure,IFig I Reg LeL 1OupFIN;IL Fh9 (Bradyl)) 1/29/03 0 Figure 2 Project Vicinity Map Figure 3 Ae, 1 Photo of The Project Site 16•••••=mi <r- 110, -91 1 Chapter 2 Alternatives 1 1 a 1 0 0 Chapter 2 Alternatives 2.1 Alternative Development Process The existing roadway is located in a built out, urban environment characterized by many commercial and residential buildings, parking lots, landscaped areas, and other urban features. Three build alternatives are examined in this document, all of which are similar in terms of the roadway improvements and satisfy the purpose and need while minimizing impacts to adjacent land uses. Given the limitations of the surrounding urban environment, the range of alternatives was reduced to those which met the purpose and need while minimizing impacts to parking and structures. 2.1.1 Alternatives Considered and Eliminated The possibility of adding two lanes on the north side of Plaza Boulevard or two lanes on the south side of Plaza Boulevard was considered, but was eliminated given anticipated impacts to parking lots and/or buildings that would be substantially greater than the alternatives addressed in this document. A Transportation System Management (TSM) alternative was also considered. TSM is a term used to refer to strategies and techniques employed to increase the efficiency, safety, capacity, or LOS of a transportation facility without increasing its size. TSM strategies attempt to maximize the efficient use of an existing transportation facility without having to employ expensive capital improvements. As such, TSM strategies can usually be employed without right-of-way acquisition and often require no construction. Examples of TSM strategies include the coordination of re -striping lanes, traffic signals, and channelizing intersections. The development of a TSM Alternative for the Plaza Boulevard Widening Project was determined to be infeasible. The limited existing roadway surface of Plaza Boulevard makes a TSM Alternative such as new lane striping impractical. Furthermore, delays are expected for the design year at the existing signalized intersections. Therefore, acceptable LOS cannot be obtained by modification of traffic light phasing alone. More lanes are required at signalized intersections to accommodate future queues. The TSM Alternative to channelize intersections through re -striping would not be considered due to the existing limited paved surface. For these reasons, further development of a TSM Alternative was not considered. Plaza Boulevard Widening Environmental Assessment/Initial Study 14140 Plaza HMI E4_IS f. dx 7/27/2005 2-1 Chapter 2 Alternatives h purpose g Project is to 4 t,l.atfic c<:>a,:.�;t5tutt,t . Form: Font: 12 pt e ur ,��� of the Ham Boulevard Widening 1 rc, t� y}ilec iat through increased capacity, lessen trait edcltys,_<tnci.tchieve fie eptable leyelsof` n vice (1 OS) established by the city of National City. Currently,five tour lane roadway contains bus stops in various locations within the project limits. . However, dc:s.pite the inewporaticn of this mass transit, the current roadway con1.1. *uric on.is . expected tea provide inadequate;aj1<iclty. to accommodate thture,tbrecasted traf_fic. volumes. Proposed improvements for the Plaza Boulevard Widening Project are not c'<pcetcd tape. rm riently_afteet the c;tIrrcnr ma,cs transit sen_iues,_All etitindlabus stops will retrain at the same relative locations along Plaza Boulevard, but will be moved outward in accordance with the road widening_ Per the Traffic Impact rat allysi (M;arch 4. 2005l pert'gnned by f.,LCi, therecommended Ian. geomtr' for direction along Plaza Boulevard increases the capacity,jwhich leads to improved traffic flow. A Mass Transit Alternative was not considered, since it does not address , { Formatted: Font:13 pt traWe, coneestien_...iss.ues with.iu.thg„projectnrea, 2.1.2 Alternatives Selected for Detailed Study Three alternatives have been selected for detailed study as described below. These alternatives were selected because they would minimize physical impacts to local businesses and other structures adjacent to the roadway. 2.2 Project Alternatives Final selection of an alternative will not be made until after the full evaluation of environmental impacts, full consideration of public hearing comments, and approval of the final environmental documents. The final selection will be published in the final environmental decision documents. Three build alternatives have been identified for this project — Alternative 1, Alternative 2, and Alternative 3. Alternative 3 is the locally preferred alternative, since it would result in the least amount of physical impacts to the environment. Common features of all alternatives include the use of a construction staging area, recommendations for construction of noise walls at two locations, a retaining wall along an existing concrete -lined drainage channel, and miscellaneous retaining walls along the route. Two possibilities have been identified for a staging area: a vacant lot adjacent to and west of Money Gram Check Cash, and a vacant lot adjacent to and 2-2 Plaza Boulevard Widening Environmental Assessment/initial Study 1K140 Plaza Blvd EA_IS1. doc 7/27/2005 Li 1 Chapter 2 Alternatives a 1 0 11 n 11 u west of Jimmy's Family Restaurant. A determination of the location will be made prior to construction. Alternative 3 would meet the project objectives and the purpose and need, as described in Sections 1.1 and 1.2. It would improve LOS along this segment of Plaza Boulevard while generally avoiding impacts to businesses that line the route. No businesses would be relocated under this alternative. Further discussion on social, economic, and relocation impacts are addressed in Section 3.3. Alternatives 1 and 2 would meet the project objectives and purpose and need, but both alternatives would physically affect existing businesses — five businesses would be affected (removed) under Alternative 1 and one business would be affected (removed) with Alternative 2. Parking would be lost under all three alternatives. Parking impacts would be greater with Alternative 1 and Alternative 2, with 162 spaces lost under Alternative 1, 87 spaces lost under Alternative 2, and 60 spaces lost under Alternative 3. The loss of parking would consist of standard parking, and no special parking such as handicap, loading/unloading, etc. would be lost. Parking impacts are discussed in greater detail in Section 3.14 and Appendix E. 2.2.1 Alternative 1 This alternative would widen Plaza Boulevard starting at a point approximately 213 meters (700 feet) west of Highland Avenue adjacent to Central Elementary School (Figure 4a). This alternative begins the farthest west of any of the other alternatives. These improvements are proposed to provide additional enhanced traffic flow and to reduce congestion at the Plaza Boulevard/Highland Avenue intersection. The project would continue eastward, primarily widening the south side of the roadway between Highland Avenue and Palm Avenue. Just east of the Palm Avenue intersection, widening would be on both sides of the street. Widening would occur on both sides of Plaza Boulevard under I-805 to allow for smooth traffic flow under the overpass (Figure 4b). An encroachment permit is required from the Department for all work conducted . within the I-805 right-of-way. Impacts within the right-of-way would include removal of existing landscaping and temporary traffic delays due to construction activities. East of I-805 to Euclid Avenue the widening would be mostly on the north side of the roadway. East of Euclid Avenue, widening would occur on the north side of Plaza Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza BNC EA ISidoc 7/27/2005 2-3 Chapter 2 Alternatives Boulevard with minor improvements on the south side at the intersection of Plaza Boulevard and Euclid Avenue. The project would end at an existing crosswalk prior. to a row of single-family residences that line both sides of Plaza Boulevard. Alternative 1 would improve the 2030 roadway segment LOS from Highland Avenue to L Avenue from LOS C to A; the segment from N Avenue to Palm Avenue from LOS D to B; the segment from Palm Avenue to I-805 from LOS E to C; the segment from Grove Street to Euclid Avenue from LOS E to C; and the segment east of Euclid Avenue from LOS C to B. A landscape plan, relocation of overhead utilities underground, and architectural treatment of walls is proposed. Landscaping and planted medians would also be Community Design and Transportation and Circulation policies of the National City General Plan (City of National City 1996a). Alternative 1 would be 1.83 km (1.14 mile) in length. There are two possible locations for staging areas: a vacant lot adjacent to and west of the business called Money Gram Check Cash; or, a vacant lot adjacent to and west of Jimmy's Family Restaurant. The technical noise analysis (Appendix H) prepared in November 2004 indicates noise walls may be needed near the Comfort Inn swimming pool and at two single-family residences east of I-805. Pending the results of the Noise Abatement Decision Report, which determines the reasonableness and feasibility of noise abatement measures, such measures may be considered. Construction of a retaining wall would also be required at the drainage channel immediately west of Euclid Avenue. This wall, located below the existing roadway grade at the existing storm drain open channel, is required to retain an embankment fill condition for the proposed widening of Plaza Boulevard. The wall would be approximately 100 meters (330 feet) in length and 3 meters (10 feet) in height, and would not be visible from Plaza Boulevard. This altemative would physically affect five business structures, which would require removal — the City Dental Center, Money Gram Check Cash, the Bay Vista College of Beauty, an Arco Smog Pros, and an Eye Care Associates building. In addition, parking spaces for some existing businesses would be lost through implementation of this Altemative, as shown in Table 2.2-1. Parking spaces eliminated, for the businesses to be removed, is not a loss. 2-4 Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza Blvd EA_IS I An, 7/27/7005 1 3 11 El 11 1 1 TI Chapter 2 Alternatives Table 2.2-1 Alternative 1 — Number of Parking Spaces Lost Location No. Parking Spaces Lost Wherehouse 0 Westem Dental 0 Eye Care Associates 3 California Produce 6 Jimmy's Family Restaurant 14 Firestone. 24 Casa Toledo Apartment Complex 15 Shopping Center (NW Quadrant -Euclid Avenue / Plaza Blvd) 37 Money Gram Check Cash 6 Payless Shoes 2 North side of Plaza Blvd east of Euclid Avenue (on street) 25 South side of Plaza Blvd east of Euclid Avenue (on street) 30 Total 162 The estimated cost for this altemative is $11,083,500. 2.2.2 Alternative 2 This alternative would widen Plaza Boulevard starting immediately east of the Highland Avenue intersection, which is east of the starting point for Alternative 1 (Figure 3). There would be no construction in the area west of Highland Avenue near Central Elementary School as described in Altemative 1 (Figure 5a). Other improvements would generally be similar to those identified under Alternative 1, except this alternative would reduce the City of National City radius standards of 305 meters (1,000 feet) to 152 meters (500 feet) and 244 meters (800 feet) on the Plaza Boulevard curve west of Palm Avenue (Figure 5b). Alternative 2 would result in the same LOS improvements to roadway segments in 2030 as were previously described for Alternative 1. Landscaping and planted medians would be provided at various locations throughout the project site. Alternative 2 would be 1.77 km (1.1 mile) in length. The project terminus would be at the same location as under Alternative 1. Construction staging areas, noise walls, and a retaining wall would be located in the same areas as described for Alternative 1. As with Alternative I, an encroachment permit is required from the Department for all work conducted within the I-805 right- of-way. Impacts within the right-of-way would include removal of existing landscaping and temporary traffic delays due to construction activities. This alternative would directly physically affect only one building — the Eye Care Associates building. Parking spaces for existing businesses would be lost through Plaza Boulevard Widening Environmental Assessment/Initial Study 1 K 140 Plaza Blvd EA_IS 1. dx 7/272005 2-5 91 Chapter 2 Alternatives ariplementation of Alternative 2, as shown in Table 2.2-2. A detailed parking analysis is discussed in Section 3.14 and in Appendix E. Table 2.2-2 Alternative 2 — Number of Parking Spaces Lost Location No. Parking Spaces Lost Wherehouse 0 Westem Dental 4 Eye Care Associates 8 Califomia Produce 8 Jimmy's Family Restaurant 14 Firestone 0 Casa Toledo Apartment Complex 0 mo,,a y lilam i;hecK Cash U Payless Shoes 0 North side of Plaza Blvd east of Euclid Avenue (on street) 25 South side of Plaza Blvd east of Euclid Avenue (on street) 30 Total 87 The estimated cost for this alternative is $9,088,291. 2.2.3 Alternative 3 This alternative would widen Plaza Boulevard beginning immediately east of the Highland Avenue intersection and would not include the area west of Highland Avenue near Central Elementary School (Figure 6a). As a result of a slight shift in alignment, this alternative would avoid parking impacts to the Firestone Dealer and Yardage Town on the north side of Plaza Boulevard. Alternative 3 would result in the same LOS improvements to roadway segments in 2030 as were previously described for Alternatives 1 and 2. Landscaping and planted medians would be provided at various locations throughout the project site. Alternative 3 would be 1.8 km (1.1 mile) in length. Alternative 3 would result in less physical impacts compared with Alternatives 1 and 2 and, therefore, is the preferred alternative. Construction staging areas, noise walls, and a retaining wall would be located in the same areas as described for Alternative 1. An encroachment permit is required from the Department for all work conducted within the I-805 right-of-way. Impacts within the right-of-way would include removal of existing landscaping and temporary traffic delays due to construction activities. Improvements would be similar to those identified under Alternative 1 and 2, but with less widening in the area east of Euclid Avenue compared to Altemative 2 due to 2-6 Plaza Boulevard Widening Environmental AssessmenVlnitial Study 1Kl40 Plaza Blvd EA_IS l.doc 7/27/2005 11 f� e 1 a 11 11 1 Chapter 2 Alternatives design differences (Figure 6b). Alternative 3 would not physically affect any buildings along the route. Parking impacts would be less than Alternatives 1 and 2, but some parking would still be removed, as shown in Table 2.2-3. A detailed parking analysis is discussed in Section 3.14 and in Appendix E. Table 2.2-3 Alternative 3 — Number of Parking Spaces Lost Location No. Parking Spaces Lost Wherehouse 1 Western Dental 3 Eye Care Associates 3 California Produce 6 Jimmy's Family Restaurant t5 Firestone 0 Casa Toledo Apartment Complex 0 Shopping Center (NW Quadrant -Euclid Avenue / Plaza Blvd) 0 Money Gram Check Cash 0 Payless Shoes 0 North side of Plaza Blvd east of Euclid Avenue (on street) 9 South side of Plaza Blvd east of Euclid Avenue (on street) 43 Total Source. r]nkken /nnz 60 The estimated cost for this alternative is $8,442,206. 2.2.4 No Action Alternative Under the No Action Alternative, the proposed improvements would not be implemented, the existing roadway would remain, and no beneficial improvements to traffic flow would occur. LOS would eventually deteriorate on Plaza Boulevard, and peak hour congestion would continue to worsen. The LOS for 2030 without the implementation of the proposed project would be LOS C for the roadway segment from Highland Avenue to L Avenue; LOS D for the segment from N Avenue to Palm Avenue; LOS E for the segment from Palm Avenue to I-805; LOS E for the segment from Grove Street to Euclid Avenue; and LOS C for the segment east of Euclid Avenue. Plaza Boulevard Widening Environmental Assessment/Mitial Study 1K140 Plaza Blvd EA_I51.doz 7/27/2005 2-7 Vb Chapter 2 Alternatives This page intentionally left blank. 2-8 Plaza Boulevard Widening Environmental Assessment/Initial Study 1 K140 Plaza Blvd EA !S 1. doc 7/17/2005 it `i "7 250 won, rom. swone tee.. layers. El.W. 00.2c0M 250 Feet $ol�t NR., Avfi- l50( Proposed Widening ® po..6le staging Area ® Structure Affected By Alignment j ® parking Affected By Alignment t Figure 4a Alternative 1 Plaza Boulevard Widening Environmental Assessment/Initial Study SP.Fid me, I oraemt 0 ZSO 250 Fe. Scair 1 30011-. lircfn 250 le. Figure 4b Alternative 1 Elam Boulevard Widening Environmental Assesunentilnitia/ Study 01.3,1401,.11e smalt_wu VS1,16 (AMa) 60/113 250 25e Feel Scala :l: 3opo. 1 eaft= 50 feel Plaza Boulevard Wdarning Fsvironmenlal Assessmeuanilial Study crsrzumoreu-,..u_� .we y,. _veigc ire 01n1/05 Figure 5a Alternative 2 250 Feet 5522 1 300,1 Ord, - 250521 Figure 5b Alternative 2 Naze Boulevard WIderavg Bova-mm.131 Assessment/LIMA Study SPICIFI6 115/, ,559J e9 "n&1 (695/9 (FVL 9&21-➢d5 d]wp_!, f0°-'00.:wsl9 'P S la!1RIUlml�sesstl I�^amudlnv� 8vmaplM Gn�'I��9 �Id 'ta PZ • wn l 'V0'. I .1.5 0 05 { angswalry q9 am�� coos tri.Il 4teu �Awv.+-yew. FEW Wtfrrur� 4PNS I!PuyvawssanV leluamaunn� 811°'P!M N.A.ofl zreId ww OZMI:coot.Mon wi OTC oosz 1 Chapter 3 Affected Environment, Impacts, and Mitigation 1 1 1 1 11 0 r 13 13 a 13 ,J Chapter 3 Affected Environment, Impacts, and Mitigation The affected environment, environmental consequences (e.g., impacts) and mitigation measures of all project alternatives (Alternative 1, Alternative 2, Alternative 3, and the No Action Alternative) are addressed in this document. A Mitigation Monitoring Program is included as Appendix C. Because Alternative 3 is the locally preferred alternative, it is addressed first, followed by a discussion of Alternative 1, Alternative 2, and the No Action Alternative. 3.1 Land Use 3.1.1 Affected Environment The project site lies entirely within the limits of the City of National City. The California Department of Transportation (the Department) maintains jurisdiction of the I-805 bridge undercrossing that lies above Plaza Boulevard near the project's eastern limits. Any work conducted within Department right-of-way would require National City to obtain an encroachment permit from the Department. The proposed project site, as well as its adjacent area, has commercial and residential land uses along the majority. of its route. The western end of the proposed project has adjacent commercial developments, including strip commercial development, shopping malls, gas stations, restaurants, grocery stores, and small hotels and motels along the route. This area is zoned as General Commercial with some General Commercial/Planned Development and Open Space (City of National City 1996b). There are several multi -family residential units near the midsection of the project, and additional multi -family residential units as the project site progresses eastward. This area is zoned Multi Family Extendible. However, the vast majority of the project is dominated by commercial uses. Two schools are located near the project site — Central Elementary School near the west end and Palmer Way Elementary School near the east end. Neither school takes its ingress or egress onto Plaza Boulevard. In addition, a concrete -lined drainage channel exists on the south side of Plaza Boulevard west of Euclid Avenue. Plaza Boulevard is identified in the National City General Plan Circulation Element as a four- to six -lane Arterial and is identified in the National City Standards for Plaza Boulevard Widening Environmental Assessment/lniflal Study 15140 Plaza Blvd EA_IS1.dx 7/27/1005 3-1 (� b Chapter 3 Affected Environment, Impacts, and Mitigation Public Rights -of -Way and Public Improvements (1992) as a six -lane Prime Arterial. The General Plan states that the City of National City should plan and budget for major roadway extensions/improvement projects in the area, which include the widening of Plaza Boulevard, to improve traffic flow through the city (City of National City 1996a). Land uses such as public lands that are public parks, recreation areas, or wildlife and waterfowl refuges of national, state, or local significance are covered by Section 4(t) of the U.S. Department of Transportation Act, Title 23, United States Code (USC), Chapter 1, Section 138 of the Federal Highway Act. There are no Section 4(f) resources within the project area. 3.1.2 Impacts Alternative 3 The project would be consistent with the Circulation Element of the City of National City General Plan and the National City Standards for Rights -of -Way and Public Improvements. Widening of Plaza Boulevard would be consistent with the recommendation for roadway improvements in the General Plan. The proposed project is consistent with the current land uses and zoning of the surrounding area and is not inconsistent or incompatible with any City plans or policies. The following discussion addresses potential indirect impacts to nearby land uses from air quality, noise, hazardous waste, aesthetics, traffic, and parking. Both construction and operations will be addressed for air quality and noise. This discussion will also address Section 4(f) impacts. There are no Section 4(f) impacts associated with the proposed action. Air quality, noise, hazardous wastes, visual resources, and traffic/parking are impact areas indirectly associated with land use. These issues, although briefly summarized below, are discussed in detail in their appropriate sections. No indirect land use impacts would result. Construction -level air quality impacts would occur and can be mitigated through implementation of standard air quality measures during construction. Refer to Section 3.4 for additional details on air quality impacts. No indirect land use impacts would result. 3-2 Plaza Boulevard Widening Environmental Assessment/Initial Study I 140 Plaza Blvd EA IS1.doc 7/27/2005 1 1 7 Chapter 3 Affected Environment. Impacts, and Mitigation Construction noise impacts would occur and can be mitigated through implementation of standard noise measures during construction. Operational noise impacts would occur at one outdoor use and two single-family residences. Impacts 11 can be attenuated through construction of noise walls. Refer to Section 3.5 for additional details on noise impacts. No indirect land use impacts would result. 111 Hazardous materials impacts would occur and can be mitigated through the use of a secondary containment at the Arco Smog Pros, and through installation of a new monitoring well to replace a well that would be destroyed by the project within the area of widening at Thrifty Gas Station #105, 1606 East Plaza Boulevard. Refer to Section 3.11 for additional details on hazardous waste impacts. No indirect land use impacts would result. The proposed widening of Plaza Boulevard could result in the elimination of existing landscaping and the construction of retaining walls and noise barriers, which would affect visual resources. Landscaping, tree plantings in the medians, and architecturally designed walls and barriers would minimize the visual impacts. Refer to Section 3.12 for additional details on visual resources impacts. No indirect land use impacts would result. Parking spaces would be lost with implementation of all three alternatives as outlined above. Refer to Section 3.14 for additional details on traffic and parking impacts. No indirect land use impacts would result. Alternative 1 Alternative 1 would also be consistent with the surounding land uses and the plans and policies of the City of National City. Alternative 2 Alternative 2 would also be consistent with the surrounding land uses and the plans and policies of the City of National City. No Action Alternative The No Action Alternative would not be consistent with the National City General Plan which states that the City should plan and budget for roadway improvements including Plaza Boulevard. This altemative would not be consistent with the City Standards for Rights -of -Way and Public Improvements that designates Plaza Boulevard as a six -lane Prime Arterial. Plaza Boulevard Widening Environmental Assessment/Initial Study 3-3 15140 Plus SWE4_IS1 doc 7/27/2005 1 1 Chapter 3 Affected Environment, Impacts, and Mitigation 3.1.3 Mitigation None of the three development alternatives would have impacts to land use, planning, and growth. No mitigation measures are required. 3.2 Farmland 3.2.1 Affected Environment The proposed widening project is located within an area that is already developed. No farmlands or agricultural lands are within or adjacent to the project boundaries. Alternative 3 There would be no impacts to farmlands/agricultural lands. Alternative 1 There would be no impacts to farmlands/agricultural lands. Alternative 2 There would be no impacts to farmlands/agricultural lands. No Action Alternative There would be no impacts to farmlands/agricultural lands. 3.2.3 Mitigation The proposed project (Alternative 3) and Alternatives 1 and 2 would have no impacts to farmlands/agricultural lands; therefore, no mitigation measures are required. 3.3 Social, Economic, and Relocation Title VI and Environmental Justice Title VI of the Civil Rights Act states that no person, because of race, color, religion, national origin, sex, age, or handicap, be excluded from participation in, denied benefits of, or be subjected to discrimination by any federal aid activity. Executive Order 12898 broadens this requirement to require that disproportionately high and adverse health or environmental impacts to minority and low-income populations be 3-4 Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Pleze Blvd EA_IS1.dec 7/272005 a Chapter 3 Affected Environment, Impacts, and Mitigation avoided or minimized to the extent feasible. A Department Title VI Policy Statement (Appendix C) is included with this document. The Department and FHWA are required to fulfill the commitments of the Title VI policy statement. The Department contracts and design practices provide that no person in the United States shall be excluded from participation in, be denied the benefits of, or be subject to discrimination under any program or activity receiving federal financial assistance on the grounds of race, color, or national origin. 3.3.1 Affected Environment Environmental Justice President Clinton signed Executive Order 12898, "Federal Actions to Address Environmental Justice in Minority Populations and Low-income Populations" on February 11, 1994. The order requires federal agencies to take the appropriate and necessary steps to identify and address "disproportionately high and adverse" effects of federal projects on the health or environment of minority and low-income populations to the greatest extent practicable and permitted by law. Social and Economic Environment Demographic and economic data incorporated below were obtained from statistical reports from the U.S. Department of the Census, 1990 and 2000 census data. City of National City National City is an incorporated city in southern San Diego County, south of the city of San Diego. The city of Chula Vista is located to the south of National City, while San Diego Bay forms its western boundary. National City totals approximately 2.02 hectares (5,888 acres) or 23.83 square km (9.2 square miles). The majority of National City lands are currently developed for commercial, industrial, and single - and multi -family uses throughout the city. Residential uses range from scattered low density, to medium, to very high density throughout the planning area. The vast majority of the city is built out and developed. Population/Ethnicity The residential population of National City is 54,260 according to the 2000 census. The majority of planning area land is currently developed for commercial, industrial, and low to medium to very high density residential purposes. The population of National City has been stable for a number of years. Census information indicates Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza Blvd EA ISl.doc 7127/2005 3-5 Chapter 3 Affected Environment, Impacts, and Mitigation that racial composition of the city is approximately 59 percent Latino, 14 percent White, 19 percent Asian, and the remainder of other races. National City has predominantly a minority population. Housing According to the 2000 census, National City has 15,018 households with an average household size of 3.39 individuals per dwelling unit. The vast majority of dwelling units are renter -occupied units, comprising about 65 percent of the households in the city. Employment/Income Most of the area's employment falls into service occunationc. This is followed by sales aiiu vi :C.; i,�G..pu.iuiib iisadU uoi LIIuJ household income for National City was $30,007. Hospitals There are no hospitals or medical housing or facilities located along Plaza Boulevard. One local hospital, Paradise Valley Hospital, is located near the eastern project terminus on East 8th Street. Schools One school, Central Elementary School, is located near the western terminus of the project site, just west of Highland Avenue. Another school, Palmer Way Elementary School, is located just east of Euclid Avenue near the eastern terminus of the project site. Both schools are within the National City School District, an elementary school district. Croyniy__oLSanDiego Population/Ethnicity According to 2000 census data, San Diego County had a population of 2,813,833. The majority of the population lives and works in the southwestern portion of the county in the city of San Diego and other large developed communities along the I-805 and I-5 corridors. Census information indicates that racial composition of the County is 66 percent White, 6 percent Black, 9 percent Asian, 13 percent Latino, and the remaining 6 percent consists of other races. 3-6 Plaza Boulevard Widening Environmental Assessrnent/Initial Study IK 140 Plaza ENd E5_IS1. doc 7/27.2005 s Chapter 3 Affected Environment, Impacts, and Mitigation r Housing According to the 2000 census, San Diego County has 994,677 households with an average household size of 2.73 individuals per dwelling unit. The majority of dwelling units are owner -occupied units, comprising about 55.4 percent of the households in the county. Employmenbincome Most of San Diego County's employment opportunities fall into management, professional, and related occupations. This is followed by sales and office occupations. Based on 2000 census income data, the median household income for San Diego County was $47,067. Relocation As described in the land use section, the project area is urban, with primarily commercial uses on either side and some residential uses. Relocation requirements specific to the project are identified in Section 3.3.2. 3.3.2 Impacts Environmental Justice Alternative 3 As supported by the statistics above, National City can be characterized as a low- income and minority population relative to San Diego County. Altemative 3 would not result in any discrimination, denied benefits, or exclusion from participation, because of race, color, religion, national origin, sex, age, or handicap- hi addition the -alterative would -not -have -any -disproportionately high or - adverse impacts on minority or low-income neighborhoods or communities because the construction impacts would be distributed evenly along the route and ultimately it would provide improved access in an otherwise disadvantaged community. Alternative 1 As described for Altemative 3, no environmental justice impacts would result from Alternative 1. Alternative 2 As described for Altemative 3, no environmental justice impacts would result from Alternative 2. Plaza Boulevard Widening Environmental AssessmenUlnitial Study 1X140 Plaza Blvd EA_IS1.tlac 7/27/2YO5 3-7 Chapter 3 Affected Environment, Impacts, and Mitigation No Action Alternative No environmental justice impacts would result from this alternative. Population/Ethnicity Alternative 3 The proposed project would not cause, either directly or indirectly, any significant levels of population growth within the project vicinity. The nature of the proposed project is to widen an already existing roadway. The project site and the surrounding areas are currently developed. Therefore, no related businesses that would increase population would be expected to develop in the project vicinity as a result of the propnged nro ect. It would a1gn not ger90 a new regidential levelnnment in the vicinity as ale area is already urbanized. Alternative 1 No population impacts would occur with Alternative 1. Alternative 2 No population impacts would occur with Alternative 2. No Action Alternative No population impacts would occur with the No Action Altemative. Housing Alternative 3 The proposed project would not displace any existing housing. No impacts to housing would occur from the proposed project. Alternative 1 No housing impacts would result from implementation of Altemative 1 because no housing would be displaced. Alternative 2 No housing impacts would result from implementation of Alternative 2 because no housing would be displaced. No Action Alternative No housing impacts would result from implementation of the No Action Altemative because no housing would be displaced. 3-8 Plaza Boulevard Widening Environmental Assessment/Initial Study 11040 Plana BNrl EA_ISl.doc 7,272005 1 Chapter 3 Affected Environment impacts. and Mitiiailon e 1 a 1 11 11 Employment/Income Alternative 3 The proposed widening project would not result in the shift of substantial employment because the proposed project would not create a permanent increase or reduction in employment opportunities. Short-term, beneficial impacts may result from construction employment and material purchased for the proposed project. Alternative 1 No employment impacts would occur under Alternative 1, similar to the proposed project. Alternative 2 No employment impacts would occur under Alternative 2, similar to the proposed project. No Action Alternative No employment impacts would occur under the No Action Alternative, nor would there be the short-term access benefits. Hospitals and Schools Alternative 3 No impacts would occur to hospitals or schools as a result of implementation of the proposed project. Alternative 1 No impacts would occur to hospitals or schools as a result of implementation of the proposed project. Alternative 2 No impacts would occur to hospitals or schools as a result of implementation of the proposed project. Relocation Alternative 3 No relocation impacts would occur under Alternative 3 because no businesses would be removed under this alternative. Some parking would still be removed from six businesses (Table 2.2-3) and on -street parking would also be lost. A total of 60 Plaza Boulevard Widening Environmental Assessment/Initial Study 1K740 Plaza Blvd F_A_ISI.doc 7/27/2005 3-9 Chapter 3 Affected Environment, Impacts, and Mitigation spaces would be lost. None of the loss of parking would include special parking such as handicap or business loading/unloading. A detailed discussion of parking impacts is included in Section 3.14. Alternative 1 Displacement of existing commercial developments would occur with the implementation of Alternative 1. This alternative would physically affect five structures that would require removal — the City Dental Center, Money Gram Check Cash, the Bay Vista College of Beauty, an Arco Smog Pros, and an Eye Care Associates building. In addition, some parking spaces at ten existing businesses/ apartment complex would also be lost through implementation of this alternative in lost. Impacts would be greater under Alternative 1 than under Alternative 3. None of the loss of parking would include special parking such as handicap or business loading/unloading. Alternative 2 Displacement would also occur with Alternative 2, but the project would only directly affect one building — the Eye Care Associates building. Parking impacts would include the loss of some parking at four businesses and on -street parking would also be lost (Table 2.2-2). A total of 87 spaces would be lost. Impacts would be greater under Alternative 2 than under Alternative 3. None of the loss of parking would include special parking such as handicap or business loading/unloading. No Action Alternative No construction would occur under the No Action Alternative; therefore, no impacts to businesses or parking lots would occur. 3.3.3 Mitigation None of the alternatives would have any adverse impacts to environmental justice, population, housing, or employment; therefore, no mitigation measures are needed. Relocation impacts would occur by the displacement of existing structures with Altematives I and 2, and parking displacement would occur with all three alternatives. The City of National City's standard displacement compensation would be implemented for businesses that would be lost under Alternative 1 or Alternative 2. The parking study (Appendix E) recommends the following mitigation for parking impacts. These measures are applicable to all three alternatives. 3-10 Plaza Boulevard Widening Environmental Assessment/Initial Study I K110 Plaza Blvd EA_ISI. doc 7/272005 s Chapter 3 Affected Environment, Impacts, and Mitigatbn The following would mitigate loss of parking spaces at businesses along the route: Eye Care Associates mitigation shall consist of the following: • Change the parking regulation and provide angled parking on the south side of 12th Avenue fronting the property. • The parking lot shall be re -configured to increase parking supply. This may include closing one of the three driveways to the site. California Produce mitigation shall consist of the following: • A shared parking agreement with Jimmy's Family Restaurant shall be investigated. • Remove the existing gate/wall dividing the California Produce and apartment complex parking lots and reconfigure the parking lot. 3.4 Air Quality An Air Quality Analysis was prepared for the Plaza Boulevard widening project in June 2003 (Appendix F). That technical report describes air pollutants typically associated with motor vehicle exhausts, the most common pollutant in San Diego County. The report also discusses applicable air quality standards and regulations, examines existing air quality conditions in the project area, and identifies possible air quality impacts that could result from the proposed improvements. The project site is located in the southern portion of San Diego County in the San Diego-Air-Basin-(SBA$),which-covers-aloof-San-Diego County. The -state -and federal Clean Air Acts regulate air quality in California. The California Clean Air Act provides a framework for air quality planning and other actions to meet the health -based state air quality standards. The federal Clean Air Act forms the basis for national air pollution control efforts. The act includes national ambient air quality standards (NAAQS) for major air pollutants, hazardous air pollutant standards, State Implementation Plans (SIPs), motor vehicle emission standards, stationary source emission standards, and enforcement provisions. Plaza Boulevard Widening Environmental Assessment/Initial Study 15140 Plaza Blvd EA_IS1.dac 7/272005 3-11 Chapter 3 Affected Environment Impacts, and Mitigation Regional and Local Air Quality Specific geographic areas are classified as either "attainment" or "nonattainment" areas for each pollutant based upon the comparison of measured data with federal and state standards. If an area is redesignated from nonattainment to attainment, the Clean Air Act requires a revision to the SIP, called a maintenance plan, to demonstrate how the air quality standard will be maintained for at least 10 years. The Transportation Conformity Rule, 51 CFR 390-464, classifies an area required to develop a maintenance plan as a maintenance area. The SDAB currently meets the federal standards for all criteria pollutants except ozone (03) and state standards for all criteria pollutants except 03 and particulate a federal and state "serious" 03 nonattainment area and a state nonattainment area for PM10. The SDAB currently falls under a federal "maintenance plan" for carbon monoxide (CO), following a 1998 re -designation as a CO attainment area. In 2001, San Diego County attained the one -hour 03 NAAQS. Notwithstanding compliance with the standard, San Diego County will remain designated a serious nonattainment area until the U.S. Environmental Protection Agency (USEPA) finds that the statutory criteria for redesignation have been met, pursuant to the Clean Air Act, and redesignates the area to attainment (SDAPCD 2002). 3.4.1 Affected Environment Ambient air pollutant concentrations in the SDAB are measured at 10 air quality - monitoring stations operated by APCD. The nearest air quality monitoring station to the Plaza Boulevard area is the San Diego - 12th Avenue Monitoring Station, located approximately 10 km (6.2 miles) ) to the northwest. 'Table 3.471 presents a summary of — the highest pollutant values recorded at this station for the 5-year period from 1997 to 2001. The metropolitan planning organization responsible for the preparation of regional transportation plans (RTP) and the associated air quality analyses is the San Diego Association of Governments (SANDAG). The regional plans are the RTP and the Regional Transportation Improvement Plan (RTIP). The most current versions of the plans are the 2030 RTP (SANDAG 2003) and the 2002 RTIP (SANDAG 2002). The proposed project is included in the RTP as part of the Major State Highway Projects/Regional Arterial System, as documented in the 2030 RTP (SANDAG 2003) and the 2002 RTIP (SANDAG 2002). The air quality analysis and conformity 3-12 Plaza Boulevard Widening Environmental Assessment/Initial Study 11,140 Plaza 9Nd EA ISf. doc 7/27/2005 1 7( Chapter 3 Affected Environment, Impacts, and Mitigation Table 3.4.1 Ambient Air Q4ality Summary San Diego - 12th Avenue Monitoring Station Pollutant Averaging Time California Air Quality Standards Federal Primary Standards i ! Maximum Concentrations Number of Days Exceeding Federal Standard° Number of Days Exceeding State Standard') 1997 1998 1999 2000 2001 1997 1998 1999 2000 2001 1997 1998 1999 2000 2001 Ozone 1 hour 0.09 ppm 0.12 ppm 0.117 0.098 0.091 0.118 0.098 0 0 0 0 0 5 1 0 1 1 8 hours none 0.08 ppm 0.084 0.073 0.068 0.079 0.072 0 0 0 0 0 n/a n/a n/a n/a n/a Carbon Monoxide 1 hour 20 ppm 35 ppm — — — — — — — — — — — — — — 8 hours 9 ppm 9 ppm 5.39 4.84 4.64 4.59 4.85 0 0 0 0 0 0 0 0 0 0 Nitrogen Dioxide (NO2) 1 hour 0.25 ppm None 0.142 0.094 0.122 0.117 0.098 n/a nla n/a n/a n/a 0 0 0 0 0 AnnualtOl none 0.053 ppm — — — — — — — — — — — — — — — Sulfur Dioxide (SOz) 1 houridl 025 ppm None — — — — — — — — — — — — — — — 24 hours 0.05 ppm 0.14 ppm 0.014 0.011 0.008 0.010 0.012 0 0 0 0 0 0 0 0 0 0 Annual none 0.03 ppm 0.003 0.003 0.002 0.004 0.003 0 0 0 0 0 nla n/a n/a n/a nla PM,0I2 'I 24 hours 50 :g/m' 150 :g/m' 74.0 48.0 69.0 65.0 66.0 0 0 0 0 0 3 0 4 6 5 Annual 30 :g/m' 50 :g/m' 29 24 1 30 31 28 0 0 0 0 0 0 1 1 0 0 Source: California Aft Resources Board 1999; SDAPCD 2001. Concentration units far Oa, CO. NOz, and SOz are in pans per mi lion (ppm). Concentration units for PMe are in micrograms per cubic meter (palm°). n; dal For annual standards, a value of 1 indicates that the standard has been exceeded. Federal standard is annual arithmetic mean; state standard is annual geometric mean. No 1-hour CO. annual nitrogen dioxide, and 1-hour SO, concentrations computed for this monitoring station Plaza Boulevard Widening Environmental Assessment/lnitial Study K140 Plaza Blvd EA_IS1.doc 7/27/2005 _._._.3-13 Chapter 3 Affected Environment, Impacts, and Mitigation finding for the 2030 RTP was prepared by SANDAG (2003) and was approved by FHWA and the Federal Transit Administration on April 9, 2003 (U.S. Department of Transportation 2003). The design of the project conforms to that anticipated in the RTP. 3.4.2 Impacts Alternative 3 Operations Emissions The Clean Air Act and the Transportation Conformity Rule require federal agencies may not approve a proposed project in a nonattainment area unless that project conforms to the SIP. As shown above, the Plaza Boulevard widening project is included in the current RTIP and RTP approved air quality analyses, and therefore the project conforms to the SIP. It is thus concluded that the project would cause no adverse impact to regional air quality. Local Air Quality The proposed project would not generate additional traffic. That is, the No Action and proposed action traffic volumes on the affected roadway segments would be the same (LL&G 2005). Therefore, it may be presumed that the project would not measurably increase traffic volume or the percentage of vehicles in cold start mode (e.g., vehicles that start with cold engines). There would be no signalized intersections operating at LOS E or F with the project in 2030. Based upon the guidance provided in the Transportation Project -Level Carbon Monoxide Protocol (UCD ITS 1997), the project would not lead to an increase in local CO emissions, and no receptors would be exposed to substantial pollutant concentrations. Impacts to local air quality would not be adverse. Construction Impacts The principal pollutants emitted during construction would be PMie and PM2.s (paticulate matter less than 2.5 microns in diameter). The source of the pollutants would be fugitive' dust created during clearing, grubbing, excavation, and grading; "Fugitive" is a term used in air quality analysis to denote emission sources that are not confined to stacks, vents, or similar paths. 3-14 Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza ENd EA IS1. doc 1/2(2005 / 1 0 3 Chapter 3 Affected Environment, Impacts, and Mitietion demolition of structures and pavement; vehicle travel on paved and unpaved roads; and materials blown from unprotected graded areas, stockpiles, and haul trucks. A secondary source of pollutants during construction would be the engine exhaust from construction equipment. The principal pollutants of concern are nitrogen oxide (NOx) and reactive organic gas (ROG) emissions, which would contribute to the formation of 03, a regional nonattainment pollutant. Diesel particulate emissions are also a concern. However, there is no formal guidance for impact analysis related to diesel emissions. Per US EPA regulatory .tntlnuncentent,_atier 1,pril 2� b...11ie.pr5 je t may require a reevaluation and a PM,5 analysis 1USEPA 2005). Potential adverse impacts would be increased if construction equipment and truck staging areas were to be located near schools, active recreation areas, or areas of higher population density. The proposed staging areas would not be adjacent to these sensitive areas. The fugitive dust emissions and construction equipment exhaust would be temporary, adverse air quality impacts during the period of construction. Altemative 1 Air quality impacts under Alternative 1 would be the same as those described for Alternative 3, and no adverse impacts would occur with the application of mitigation measures described below. Alternative 2 Air quality impacts under Alternative 2 would be the same as those described for Altemative 3, and no adverse impacts would occur with the application of mitigation measures described below. No Action Alternative No construction -level or operation -level air quality impacts would occur under the No Action Alternative. However, all of the intersections analyzed would operate at LOS D or worse in the year 2030 with this altemative. This could result in an increase in CO emissions and possibly local CO hot spots. 3.4.3 Mitigation For all three build alternatives, the following measures shall be incorporated into the project to minimize the emission of fugitive dust, PM10, and PM2.5: • Minimize land disturbance. Plaza Boulevard Widening Environmental Assessment/Initial Study IK140 Plaza Blvd EA_IS f. doc 7/27/2006 3-15 7� Chapter 3 Affected Environment, Impacts, and Mitigation • Use watering trucks to minimize dust; watering should be sufficient to confine dust plumes to the project work areas. • Suspend grading and earth moving when wind gusts exceed 25 miles per hour unless the soil is wet enough to prevent dust plumes. • Cover trucks when hauling dirt. • Stabilize the surface of dirt piles if not removed immediately. • Limit vehicular paths on unpaved surfaces and stabilize any temporary roads. • Sweep paved streets at least once per day where there is evidence of dirt that has been carried onto the roadway. • Revegetate disturbed land, including vehicular paths created during construction to avoid future off -road vehicular activities. • Remove unused material. The following measure shall be incorporated into the project for all three alternatives to minimize exposure to diesel particulate emissions: • Locate construction equipment and truck staging and maintenance areas as far as feasible and nominally downwind of schools, active recreation areas, and other areas of high population density. Long-term air quality impacts would not be adverse and no mitigation is required. 3.5 Noise Noise is defined and measured in decibels (dB). While microphones measure sound in decibels, the human ear is not the perfect microphone. The human ear tends to be less sensitive to noise sources in the low (bass drum, car tire) and high (cymbals, dog whistle) frequency ranges while achieving flat frequency response in the middle (human speech) range. Therefore, a weighting curve known as the A -weighting scale has been developed for use in approximating the sensitivity of the average human ear. 3-16 Plaza Boulevard Widening Environmental Assessment/Initial Study IK140 Plaza Blvd E4 IS1.doc 7/27/2005 7C Chapter 3 Affected Environment, Impacts, and Mitigation 1 1 1 a 11 11 3 1j 1] 1. J At present, the base measurement for community and transportation noise is the A -weighted decibel, or dBA. The measurement scale in use today by the FHWA is the equivalent noise level, or Leq. Leg is calculated by averaging the dBA noise levels measured over a specified period of time. The FHWA and the Department assess freeway noise levels in terms of a I -hour L. A 1-hour Ley is the average of instantaneous dBA sound levels measured over a period of 60 minutes. Noise sensitive land uses and activities in the vicinity of highway projects were identified in the analysis prepared for the Noise Report (Appendix H). Anticipated noise levels are computed for noise sensitive areas on the basis of expected noisiest hour conditions. FHWA regulations contain noise abatement criteria (NAC) considered to be the upper limits of acceptable noise levels for exterior land uses, for outdoor activities, and for certain interior use (Table 3.5.1). The NAC lists land use types as Categories A, B, C, D, or E. In this study, Category B represents the majority of sensitive receptors that are proximate to the project corridor. Where there is no frequent human use at residential receptors, NAC Category E is applicable. Table 3.5.1 Hourly Noise Level Criteria Activity Category L,q for Noisiest Traffic Hour Description of Activity A 57 (Exterior) Land on which serenity and quiet are of extraordinary significance and serve an important public need, and where the preservation of those qualities is essential if the area is to continue to serve its intended purposes. B 67 (Exterior) Picnic areas, recreation areas, playgrounds, active sportareasrpadcs, residences motels,. hotels_ schools, churches, libraries, and hospitals. C 72 (Exterior) Developed lands, properties, or activities not included in Categories A or B. D -- Undeveloped land. E 52 (Exterior) Residences, motels, public meeting rooms, schools, churches, libraries, hospitals, and auditoriums. As defined by FHWA and the Department, a traffic noise impact occurs when the noise level approaches, this is, is within 1 dBA, or exceeds the NAC. Therefore, for NAC Category B, an impact occurs when the noise level is 66 dBA or greater. For Category E, an impact occurs when the interior noise level is 51 dBA or greater. A traffic noise impact also occurs when the project would cause a substantial noise Plaza Boulevard Widening Environmental Assessment/Initial Study 1H140 Plaza Blvd E4 /01.d 7/27/2005 3-17 7G Chapter 3 Affected Environment, Impacts, and Mitigation increase, which is defined as an increase of 12 dBA or greater. A substantial noise increase would be a significant impact (California Department of Transportation 1998). 3.5.1 Affected Environment Ambient noise within the project area is due predominantly to traffic on Plaza Boulevard and I-805. The Plaza Boulevard corridor comprises mainly commercial use with some scattered residences. Residential sites are both single-family and multi -family and lie mostly east of Palm Avenue. Several residences, including two apartment complexes, lie within 12 meters (39 feet) of the road. The remaining residences are situated farther up slopes rising from both sides of the road. A senior i��lll� 1 'l l.:l�', .J 4lll�lic%l �.1 L.J �, la:J .iL LiiV LALL vaLav �::i:,i '...iu V• LLl�: plui,.l. t. [1L family dwellings are multilevel. Schools are also located near the project site. Central Elementary School lies on the west end, immediately adjacent to the roadway and at a slight elevation above the road. Palmer Way Elementary School is on the east end and is set back about 90 meters (300 feet) and at a slightly higher elevation than the roadway. Both schools have large playgrounds that are close to the road. There are five hotels within the project area, all situated close to or immediately adjacent to Plaza Boulevard. Two of the hotels have exterior swimming pools. The remaining establishments are commercial, typically restaurants, retailers, and services. Plaza Boulevard is currently a four -lane arterial with a continuous center turning lane. An additional eastbound lane runs from just before Highland Avenue to halfway between N and Palm Avenues. I-805 crosses over Plaza Boulevard at the approximate midpoint of the project sire.. Many residences are clustered around this interchange and are therefore subject to both freeway noise and noise from Plaza Boulevard. To establish the existing noise environment, ambient measurements were conducted at 23 locations along the project corridor. An additional 28 receptor points were modeled along the roadway. The measured data were used to calibrate the modeled points where applicable. The results are shown in Table 3.5.2. There are existing traffic noise impacts at eight receptors, as shown by bold noise levels in the table. 3-18 Plaza Boulevard Widening Environmental Assessment/Initial Study 1K 140 Pleze Blvd E4 IS .doe 7/272005 5 r F' 3 s1 r] 77 1 Chapter 3 Affected Environment, Impacts, and Mitigation 1 1 11 11 Table 3.5.2 Existing Noise Levels ID Location Type of Use Number of units represented NAC' Existing Worst Hour Noise Level (dBA) Measured or Modeled? W res 01 Residence across from Central School (1524 Plaza) residential 1 NA 70 measured W sch 02 Central School — classroom, exterior school 1 B (87) 84 modeled W sch 04 Central School playground school 1 B (67) 60 modeled W com 01 Taco Salsa parking lot mixed commercial 1 NFH 67 modeled W com 02 Papa John's mixed commercial 1 NFH 66 modeled W htl 02 Grand Plaza Inn; west wing hotel N/A E (52) 80/48 modeled W htl 03 Grand Plaza Inn; east wing hotel N/A E (52) 60/48 measured W com 03 Carl's Jr. restaurant 1 NFH 67 modeled W corn 04 Discount Tire/Sizzler mixed commercial 2 NFH 88 modeled W com 05 Jollibee restaurant 1 NFH 68 modeled W res 02 Residence south of station #33; patio residential 9 B (67) 59 modeled W htl 04 Ha' Penny Inn pool hotel NA B (67) 57 measured W res 03 Residences NE of 12th & Palm; (1121 Palm St.) back yards residential 4 B (67) 59 modeled W htl 07 Comfort Inn pool hotel NA B (67) 68 measured W apt 02 Casa Toledo residential NA E (52) 70/58 measured W htl 09 Days Inn pool hotel NA B (67) 62 measured W htl 10 Days Inn pool hotel NA B (67) 59 modeled W htl 12 Econo Lodge hotel NA E (52) 71/51 modeled ' W apt 03 Apartments by California Produce residential 8 E (52) 62/50 measured E res 01 Residence; SW comer Grove & 12th; patio (2104 12th St.) residential 3 - B (67) - 61 modeled E res 03 Residence; SW comer Grove & 12th; back yard (2126 12th St.) residential 1 B (67) 69 modeled E res 05 Residence; SW comer Grove & 12th; back yard (2130 12th St.) Residential 1 B (67) 66 measured E res 06 Residence; N of 12th near Grove residential 6 B (67) 65 modeled E res 07 Residence; N of 12th near Grove residential 6 B (67) 64 modeled E res 08 Residence; S of 12th, E of Grove (2224 12th St.) residential 1 B (67) 68 modeled E res 09 Residence; S of 12th, E of Grove (2228 12th St.) residential 1 B (67) 67 modeled E res 10 Residence; N of 12th near Grove residential 6 8 (67) 54 modeled E com 01 Grove Plaza mixed commercial NA NFH 66 modeled Plaza Boulevard Widening Environmental Assessment/Initial Study 1Ki40 Plaza Blvd EA IS1. doc 7/27/2005 3-19 7 Chapter 3 Affected Environment, Impacts, and Migration ID Location Type of Use Number of units represented NAC' Existing Worst Hour Noise Level (dBA) Measured or Modeled? E res 12 Residence south of station #66 (rear of 2405 13th St. near Orange Ave.) residential 6 B (67) 61 measured E com 02 Strip mall NW comer of Plaza & Euclid mixed commercial NA NFH 65 modeled E apt 02 Summer Crest Apartments residential 02 E (52) 84/52 modeled E com 03 Strip mall south of Summer Crest Apartments; parking lot mixed commercial NA NFH 86 modeled E com 04 2721 Plaza Boulevard Mixed use NA NFH 88 measured E res 13 Residence north of station #80; back yard residential 8 NA 55 modeled E res 14 Residence south of station # 80; residential ? NA 51 mn i led E sch 01 Palmer Way School; playground school 1 B (67) 57 modeled E sch 02 Palmer Way School; exterior school 1 B (67) 55 modeled ' Noise abatement criterion. B(67) is an exterior criterion; E(52) is an interior criterion. 2 Residential units on upper floors only. NFH — there is no exterior area of frequent human habitation, and no impact is assessed for this commercial receptor. NA — Not applicable. Number of units represented is not applicable to hotel and commercial land uses; if NA is in the NAC column, receptor is outside of the project area; data are shown for Information. The Noise Report (Appendix H) contains samples of SOUND32 input and output data for existing conditions. Many points in addition to those considered to be noise sensitive were measured or modeled to provide further understanding and information about the noise environment surrounding Plaza Boulevard. The NAC are not, however, applicable at these points, and no assessment of impact was made. Areas where there is no frequent human use are marked "NFH" in the following table. Noise levels include adjustments and calibration factors where appropriate. Measured values were adjusted to achieve parity between actual traffic volumes during measurement and modeled traffic volumes. For modeled points, traffic was assumed to flow at full speed (no congestion) even at heaviest traffic volumes. 3.5.2 Impacts Alternative 3 Future Noise Based on the model inputs and assumptions described in the Noise Report, the predicted noise levels for year 2030 are presented in Table 3.5.3. Appendix H 3-20 Plaza Boulevard Widening Environmental Assessmendlnitial Study 11(140 Plaza Blvd EA_IS I doc 7727/2005 a 1 Chapter 3 Affected Environment Impacts, and Mitigation Table 3.5.3 Predicted Future Noise Levels for Build Alternatives Receptor ID Location Traffic Noise Level dBA L„1 Noise Level NAC2 Impact?' Existing 2030 Increase (dBA) W res 01 Residence across from Central School (1524 Plaza) 70 71 1 NA None W sch 02 Central School 64 64 0 B (67) None W sch 04 Central School playground 60 80 0 B (87) None W com 01 Taco Salsa parking lot 67 68 1 NFH None W com 02 Papa John's 66 67 1 NFH None W htl 02 Grand Plaza Inn; west wing 60/48 61/48 0 E (52) None W htl 03 Grand Plaza Inn; east wing 60/48 60/48 0 E (52) None W com 03 Carl's Jr. 67 67 0 NFH None W com 04 Discount Tire/Sizzler 68 70 2 NFH None W corn 05 Jollibee 66 67 1 NFH None VV res 02 Residence south of station #33; patio 59 59 0 B (67) None W htl 04 Ha' Penny Inn pool 57 58 1 B (67) None W res 03 Residences NE of 12th & Palm; (1121 Palm St.) back yards 59 59 0 B (67) None W htl 07 Comfort Inn pool 68 71 3 B (67) A/E W apt 02 Casa Toledo 70/58 71/59 1 E (52) A/E W htl 09 Days Inn pool 62 62 0 B (67) None W htl 10 Days Inn pool 59 60 1 B (67) None W htl 12 Econo Lodge 71/51 72/52 1 E (52) A/E W apt 03 Apartments by Califomia Produce 62/50 63/51 1 E (52) NE E res 01 Residence; SW comer Grove & 12th; patio (2104 12th St.) 61 62 1 6 (67) None E res 03 Residence; SW comer Grove & 12th; back yard (2126 12th Si). 69 70 1 B (67) A/E E res 05 Residence; SW comer Grove & 12th; back yard (2130 12th St.) 66 68 2 B (87) A/E E res 06 Residence; N of 12th near Grove 65 66 1 B (67) A/E E res 07 Residence; N of 12th near Grove 64 64 0 B (67) None E res 08 Residence; S of 12th, E of Grove (2224 12th St.) 68 68 0 B (67) A/E E res 09 Residence; S of 12th, E of Grove (2228 12th St.) 67 69 2 B (67) A/E E res 10 Residence; N of 12th near Grove 54 55 1 B (87) None E com 01 Grove Plaza 66 67 1 NFH None E res 12 Residence south of station #66 (rear of 2405 13th St:nearOrange-Ave.) 61 62 1 B (67) None E com 02 Strip mall NW comer of Plaza & Euclid 65 66 1 NFH None E apt 02 Summer Crest Apartments 64/52 65/53 1 E (52) NE E com 03 Strip mall south of Summer Crest Apartments; parking lot 66 66 0 NFH None E com 04 2721 Plaza Boulevard 68 68 0 NFH None E res 13 Residence north of station #80; back yard 55 55 0 NA None E res 14 Residence south of station # 80; back yard 53 53 0 NA None E sch 01 Palmer Way School; playground 57 57 0 B (67) None E sch 02 Palmer Way School; exterior 55 55 0 B (67) None Where one value is shown, it Is the exterior noise level; where two vaues are shown they are the exterior and interior noise levels. When a residential use has no exterior area of frequent human habitation, the interior noise level criterion is applied. 2 Noise abatement criterion. B(67) Is an exterior criterion; E(52) is an interior criterion. NFH - there is no exterior area of frequent human habitation, and no impact is assessed for this commercial receptor. NA - Not applicable. Receptor is outside of the project area; data are shown for information. 3 A/E: Approaches or Exceeds the Noise Abatement Criteria. Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Pezo Blvd B4_IS1.4o4 7/27/2005 3-21 Chapter 3 Affected Environment, Impacts, and Mitigation provides samples of SOUND32 input and output data for future conditions. Comparison is made between the existing and build options, and impacts are noted where applicable. In no case would there be a substantial noise increase between the existing and build configurations ("substantial" being defined as 12 dB or greater). Ten of the receptors, however, experience predicted levels that approach or exceed the applicable NAC, necessitating consideration of noise abatement. Five of these represent exterior areas of approximately nine homes (NAC Category B): noise levels at these receptors are due to the proximity to either Plaza Boulevard or I-805. Three of these are apartment buildings (apartments by California Produce, Summer Crest, and Casa Toledo), all hotels. The Comfort Inn has a pool overlooking Plaza Boulevard that has existing and future noise levels that exceed NAC Category B. The Econo Lodge is situated very close to Plaza Boulevard, has no exterior area of frequent human use, and future noise levels would equal the interior NAC (Category E). For the apartments, it was assumed that windows must be open for ventilation since observation indicated a lack of air conditioning in these buildings. Consequently, exterior -to -interior noise attenuation was limited to an assumed 12 dB. For buildings with air conditioning, 20 dB of attenuation (typical for residential construction) was assumed with windows closed. Even with the latter, interior noise levels at the Econo Lodge would equal the interior NAC (Category E) because of its proximity to Plaza Boulevard. This assumption of 20 dB attenuation is conservative for the Econo Lodge; more likely, it was built to higher construction standards to meet the requirements of California Title 24. In the cases of receptor sites W htl 12, W apt 03, and E apt 02, the impacts would not he severe with forecast interior noise levels of 51 to 53 dBA Le. In the case of E apt 02 (Summer Crest apartments), an additional 3 dB reduction for the noise level at the south (street) side was assumed, as all windows appeared to open to the east and west sides, and exposure to the roadway would be 90 degrees or less. Of the five residential receptors representing single-family homes, three are dominated by freeway noise (E res 03/05/06). The remaining two residences on 12th Street, east of Grove with rear yards facing Plaza Boulevard (E res 08 and E res 09), are subject principally to Plaza Boulevard noise. 3-22 Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza SAd FA ISl.doc //172005 1 a Chapter 3 Affected Environment, Impacts, and Mitigation Construction Noise Construction noise would be generated by diesel engine equipment used for removing existing roadway, grading, unloading and placing materials, and paving. Additional noise would come from pavement breakers and demolition of structures. Under load conditions, diesel engine noise levels may be 85 to 90 dBA at a distance of 15 meters (50 feet) from the equipment. Construction equipment noise is considered to be a point source and attenuates over distance at a rate of 6 dB for each doubling of distance. Thus, a noise level of 85 dBA at 15 meters (50 feet) would be 79 dBA at 30.5 meters (100 feet) and 73 dBA at 61 meters (200 feet) from the source. During construction operations, equipment moves to different locations and goes through varying load cycles. There are also breaks for the operators and for nonequipment tasks. Although peak noise levels may be 85 to 90 dBA, hourly average (Leg) noise levels near the edge of the roadway would likely be in the range of 65 to 75 dBA. Nevertheless, construction noise at many receptors may exceed ambient traffic noise levels and would likely be perceived as nuisance noise. Noise from pavement breaking and diesel engines under load may cause interior noise levels to exceed 65 dBA, which would likely result in speech interference. The majority of the work would be performed in accordance with the city noise ordinance, and construction would be performed between the hours of 7 a.m. and 7 p.m. weekdays and Saturdays (Title 12 of the National City code) and would therefore not occur during normal sleep hours. The project area is considered semiresidential and commercial, and noise levels at the receptors are not anticipated to exceed the 85-dBA limit of the noise ordinance. Daytime noise impacts would not be adverse with implementation of the measures outlined below. Nighttime construction is anticipated in the area between the freeway and Grove Street to avoid unacceptable congestion during daytime hours. This effort would involve the construction of retaining walls, involving equipment such as cement trucks and cranes. Construction noise would likely be heard at the three residences just north of this area (at the southwest quadrant of 12th and Grove) and possibly at residences further north. The nearest homes are approximately 45 meters (150 feet) away and are at an elevation of 3 to 6 meters (10 to 20 feet) above the construction area. The distance and barrier provided by topography would reduce most construction noise by 15 to 20 dBA. Construction equipment producing 85 dBA would cause noise levels of 65 to 70 dBA at these residences, which would equal but not exceed the nighttime noise level limit for semiresidential areas shown in the Plaza Boulevard Widening Environmental Assessment/Initial Study JH140 Plata Blvd EA 751,dcc 7/27/2005 3-23 Chapter 3 Affected Environment, Impacts, and Mitigation Noise Report (Appendix H). Traffic noise from I-805 would make construction noise activities somewhat less noticeable. Exceedances of the noise level limit could occur if the contractor were to use equipment that would be noisier than typical, or if the detail design of the work caused the equipment to be located such that there was a direct line of sight to the residences. The noise abatement measures included in the following section are designed to avoid exceedances and would minimize nighttime construction noise impacts. Nighttime construction noise would only occur between I-805 and Grove Street (Figure 6b). Alternative 1 Noise impacts under Alternative 1 would be the same as Alternative 3, with both Alternative 3, two single-family dwellings and one outdoor use would be affected by long-term noise impacts. Nighttime construction under this alternative would occur in the same area as in Alternative 3. Alternative 2 Noise impacts under Alternative 2 would be the same as Alternative 3, with both future noise impacts and impacts that would occur during construction. As with Alternative 3, two single-family dwellings and one outdoor use would be affected by long-term noise impacts. Nighttime construction under this alternative would occur in the same area as in Alternative 3. - No Action Alternative Under the No Action Alternative, there would be no construction, and no construction -related noise impacts would occur. 3.5.3 Noise Abatement Measures Future Noise Future noise impacts shall be abated by the following: • Noise abatement at impacted receptors, which include a motel swimming pool and two single-family residences, can be accomplished by construction of sound barriers where reasonable, to achieve a minimum 5-dBA reduction. The sound barrier at the Comfort Inn swimming pool would be located approximately five meters (16 feet) above, and on the north side of, Plaza Boulevard. The barrier would be 1.8 meters (6 feet) high and approximately 40 meters (132 feet) long, 3-24 Plaza Boulevard Widening Environmental Assessment/Initial Study 1N140 Plaza Blvd EA_IS<.dx 7/27/2005 a i] Chapter 3 Affected Environment, Impacts, and Mitigation surrounding the swimming pool area. This barrier shall be constructed of a solid material, with no openings. The material may include concrete block, wood, or a clear material, such as glass or plexiglass. A clear barrier could also minimize the visual obstruction to hotel guests that an opaque barrier would provide. An easement would be required of the property owner for the construction of the barrier. The barrier at the residences would be located on the west and south side of the residential properties north of Plaza Boulevard. The barrier would be 3 meters (10 feet) high and approximately 64 meters (211 feet) long. This barrier shall be constructed of a solid material, with no openings. The material may include concrete block, wood, or a clear material, such as glass or plexiglass. A clear barrier could also minimize the visual obstruction to property owners that an opaque barrier would provide. Easements would be required of the property owners for the construction of the barrier. Noise abatement would not be feasible at six receptors. Three of these receptors, identified as E res 03, E res 05, and E res 06, respresent residences east of I-805, north of Plaza Boulevard, and south and north of 12th Street. The dominant noise at these residences is from traffic on I-805; therefore, the abatement of Plaza Boulevard noise would not be effective in reducing the overall noise level. The Econo Lodge motel (W htl 12), an apartment complex on the north side of Plaza Boulevard between Pahn Avenue and 1-805 (W apt 02), and an apartment complex on the south side of Plaza Boulevard between Palm Avenue and I-805 (W apt 03) were assessed as infeasible for sound wall construction based on reasons of topography or accessibility. Noise abatement would not be feasible at the Summer Crest Apartments (E apt 02), east of Euclid Avenue, because there is no outdoor area of frequent human habitation and the living units near Plaza Boulevard are above the first floor. Construction Noise The following abatement measures shall be implemented to minimize construction noise impacts under all three alternatives: • Limit construction to between 7 a.m. and 7 p.m. weekdays and Saturdays wherever feasible to minimize night noise generation. • Notify residents and business owners in advance of planned work near their properties. Plaza Boulevard Widening Environmental Assessment/Initial Study 110 90 Plaza 9Ntl EA IS1.dw 7/272005 3-25 Chapter 3 Affected Environment, Impacts, and Mitigation • Require contractors and subcontractors with haul trucks to have and maintain mufflers of original equipment grade or better on all engines. • Use solar- or battery -powered traffic control devices (such as lighted signs) when located within 150 meters (500 feet) of residences. Do not use internal combustion engines for such devices. • Apply noise ordinance limits to hours of construction in staging areas. For anticipated nighttime construction, the contractor shall be required to take extra measures to minimize the noise impact on nearby residences. These measures shall be used for all three alternatives and shall include the following elements: • Prepare and implement a construction noise monitoring plan. Where excess noise levels are observed or likely to occur, temporary abatement measures shall be taken to reduce noise to acceptable levels. • Select machinery with noise control in mind. Noise levels often vary widely between manufacturers and models for similar types of equipment. Some machines are specifically designed for low noise emissions. Inspect all equipment to ensure good working order. • - Carefully consider placement of equipment. Merely orienting a truck such that its exhaust points away from a receptor can result in as much as 10 dB of noise reduction. The contractor shall take full advantage of the nearby freeway overpass for shielding such equipment as generators and compressors. Other equipment shall be shielded behind natural or man-made barriers as much as possible. Otherwise, equipment shall be -placed -as -far -as possible from -sensitive -- receptors. • Consider temporary noise barriers. Commercial scaffold -mounted curtains are available that are specifically designed for construction noise attenuation. Stacked bales of hay have also been successfully used as inexpensive barriers. • The contractor should plan and execute work in the area between I-805 and Grove Street to minimize noise impacts by performing noisier activities during daylight hours and reserving quieter operations for those hours when disturbance by noise would be more noticeable. 3-26 Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza Blvd EA_IS1 doc 7,212005 Chapter 3 Affected Environment, Impacts, and Mitigation 1 j 11 1 tl it r i 3.6 Hydrology, Water Quality, Stormwater Runoff 3.6.1 Affected Environment The project area is located within the Pueblo San Diego Hydrologic Unit, an area of about 155 square km (60 square miles) in extent, with no major stream system identified within this unit. The Pueblo San Diego Hydrologic Unit is located south of the watershed of the San Diego River and north of the watershed of the Sweetwater River. It is further identified as being within the National City Hydrologic Area, and in both the El Toyon and the Paradise Subbasins. San Diego Bay lies offshore of the project area, about 3.2 km (2 miles) to the west. No major surface drainages exist within the project area. There is, however, a small drainage channel that begins west of the intersection of Plaza Boulevard and Euclid Avenue and runs parallel to Plaza Boulevard for a distance of 40 meters (460 feet). The channel is concrete lined on the sides and bottom and continues westward until it disappears underground beneath a strip commercial development. Other than this small segment, there is no evidence of surface drainage along the route. The underground Paradise Creek channel flows from the northeast through the project area to the southwest. 3.6.2 Impacts Alternative 3 Most of the project site consists of sidewalks or paved parking lots that would be replaced by widened roadway sections. Only two unpaved lots would be affected by the project. Paving on the unpaved portion of these lots would slightly inrease the amount of impervious surfaces created by the proposed project. Therefore, there may be an impact on drainage patterns or the rate and amount of runoff. However, no major surface drainages exist within the project area, and site design measures, preparation of a Storm Water Pollution Prevention Plan (SWPPP), as well as best management practices (BMPs) to be implemented during construction would be employed to minimize any impacts to water quality. Compliance with the National City National Pollution Discharge Elimination Systems (NPDES) permit (No. CA50108758) requirements (Order No. 2001-01) and the Standard Urban Runoff Mitigation Plan (Ordinance No. 2002-2213) requirements, preparation of the SWPPP, and implementation of BMPs (i.e., control site runoff, spills/leaks, waste disposal), hydrology and water quality impacts would not be adverse. Plaza Boulevard Widening Environmental Assessment/Initial Study IK140 Plaze Blvd EA_IS1-clot 7/27/2005 3-27 Chapter 3 Affected Environment, Impacts, and Mitigation Construction of a retaining wall adjacent to the unnamed concrete -lined channel just west of Euclid Avenue on the south side of Plaza Boulevard has the potential to indirectly affect water quality by increasing sediment load in the channel and consequently San Diego Bay. Increased sediment in San Diego Bay could result in filling and consequently the loss of important wildlife habitat. Use of BMPs would minimize offsite impacts from increased sediment. The proposed improvements would result in the loss of landscaping areas and related pervious areas. This would not result in adverse hydrology or water quality impacts. Alternative 1 Hydrological impacts would be the same as Alternative 3 and would be minimized by Alternative 2 Hydrological impacts would be the same as Alternative 3 and would be minimized by preparation of a SWPPP and use of BMPs during construction. No Action Alternative Under the No Action Altemative, Plaza Boulevard would not be widened, and no physical improvements would occur to the roadway. Impacts to surface hydrology would not occur under the No Action Alternative, and Plaza Boulevard would remain the same as existing conditions. 3.6.3 Mitigation A SWPPP shall be prepared to address erosion control and sedimentation issues related to proposed grading activities. The SWPPP shall specify and describe the implementation process of all BMPs that will address equipment operation and - materials management, prevention of erosion, and prevention of sedimentation in onsite and downstream drainage swales. The City Engineer of National City shall ensure that the SWPPP is properly implemented. The concrete -lined drainage channel on the eastern end of the project shall be protected from indirect impacts by utilizing BMPs to filter runoff and prevent the introduction of sediment and other pollutants. Examples of treatments include the use of straw wattles and gravel -filled burlap bags. An experienced environmental monitor shall inspect the placement and installation of the BMPs to ensure they are implemented properly and shall periodically inspect the BMPs during the construction process. 3-28 Plaza Boulevard Widening Environmental AssessmenUlnitial Study 1K140PIeze eNd EA_lSf.dx 7/27/2005 L. Chapter 3 Affected Environment, Impacts, and Mitigation 3 3 3.7 Wetlands and Waters of the U.S. Wetlands are defined as those areas that are inundated or saturated by surface water or groundwater at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions. The majority of jurisdictional wetlands meet three wetland delineation criteria: hydrophytic vegetation, hydric soil types, and wetland hydrology. Waters of the U.S. include navigable waters of the U.S., interstate waters, all other waters where the use or degradation or destruction of the waters could affect interstate or foreign commerce, tributaries to any of these waters, and wetlands that meet any of these criteria or that are adjacent to any of these waters or their tributaries. Many surface waters and wetlands in California meet the criteria for waters of the U.S., including intermittent streams and seasonal lakes and wetlands. The U.S. Army Corps of Engineers, under Section 404 of the Clean Water Act, regulates and issues permits for activities that involve the discharge of dredged or fill materials into waters of the U.S. 3.7.1 Affected Environment No wetlands or other waters of the U.S. exist on or adjacent to the highly urbanized project site. 3.7.2 Impacts Alternative 3 There would be no impacts to wetlands or other waters of the U.S. since none are located on the project site. Alternative 1 There would be no impacts to wetlands or other waters. of the U.S. since none are located on the project site. Alternative 2 There would be no impacts to wetlands or other waters of the U.S. since none are located on the project site. Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza Blvd EA_IS1.doc 7/17/2005 3-29 Chapter 3 Affected Environment, Impacts, and Mitigation No Action Alternative There would be no impacts to wetlands or other waters of the U.S. 3.7.3 Mitigation None of the three alternatives would have any adverse effects to wetlands or other waters of the U.S.; therefore, no mitigation measures are required. 3.8 Biological Resources (Wildlife and Threatened and Endangered Species) Habitat and Plants The project is located in an urbanized area within the limits of National City. Most of the route consists of urban development with commercial or residential buildings currently in place. No areas of native habitat were identified during the biological survey conducted on August 15, 2002, for this project (Appendix I). Some small dirt lots do exist along the corridor, but these are devoid of vegetation. A concrete -lined drainage channel exists on the south side of Plaza Boulevard just west of the intersection of Euclid Avenue. This channel is 140 meters (460 feet) long by 10 meters (32 feet) wide with concrete sides and bottom. No native habitat or vegetation is present in the channel. Endangered Species A query of the California Natural Diversity Database and the Multiple Species Conservation Plan database for a 2.4-km (1.5-mile) radius around the project site indicates that four sensitive plant species occur in the project vicinity. The species are the federally threatened San Diego thornmint (Acanthomintha ilicifolia), federally endangered San Diego ambrosia (Ambrosia pumila), California Native Plant Society (CNPS) list 2 coast wooly -heads (Nemacaulis denudata var. denudata), and CNPS list 2 San Diego barrel cactus (Ferocactus viridescens). However, absence of suitable habitat precludes the potential for these species to occur in and adjacent to the project area. The query also indicates that one federally endangered bird species, light-footed clapper rail (Rallus longisrostris), occurs in the project vicinity. However, absence of 3-30 Plaza Boulevard VYdening Environmental Assessment/Initial Study 110 40 Plane Blvd EA_1Stdoc 7/27/2005 Chapter 3 Affected Environment, Impacts, and Mitigation a 1 1 3 1 1 a.. 1 salt marsh, tidal slough, or emergent wetland habitat precludes the potential for this species to occur in and adjacent to the project area. Table 3.8.1 identifies rare, threatened, or endangered species in the vicinity of the project. Table 3.8.1 State- and Federally Listed Threatened or Endangered Species in the Vicinity of the Project Area Scientific Name Common Name Onsite Status Rallus longisrostrls Light-footed clapper rail No FE, CE, FP Acanthomintha iNdfolla San Diego thommint No FT, CE, CNPS-1 B Ambrosia pumila San Diego ambrosia No FE, CNPS-1 B Nemacau/is denudata v. denudata Coast wooly -heads No CNPS-2 Ferocactus viridescens San Diego barrel cactus No FS, CNPS-2 FE= Federal Endangered Species CNPS= California Native Plant Society FP=Federally Protected FT= Federal Threatened Species CE= State Endangered• FS=Federal Species of Concern Invasive Species With the exception of pampas grass, no invasive species exist within the project limits. Horticultural landscaped species exist along most of the route. 3.8.2 Impacts Alternative 3 No sensitive biological resources would be directly affected as a result of implementation of the project. A list of federally threatened, endangered, or proposed species was requested from the U.S. Fish and Wildlife Service. The Fish and Wildlife Service responded with a letter stating, "no impacts to federally listed endangered or threatened species, or designated or proposed critical habitat will occur as aresult of the proposed actions" (Appendix B). However, construction of a retaining wall adjacent to the unnamed concrete -lined channel just west of Euclid Avenue on the south side of Plaza Boulevard has the potential to indirectly affect biological resources by increasing sediment load in the channel and consequently San Diego Bay if not properly constructed. Increased sediment in San Diego Bay could result in filling and consequently the loss of important wildlife habitat; but this indirect impact is addressed in Section 3.6 (Hydrology, Water Quality, Stormwater Runoff). Alternative 1 Biological impacts under Alternative 1 would be the same as those described for Alternative 3. Plaza Boulevard Widening Environmental Assessment/Initial Study 1 H140 Pleze Blvd EA_1S1. doe 7/27/2005 3-31 Chapter 3 Affected Environment, Impacts, and Mitigation Alternative 2 Biological impacts under Alternative 1 would be the same as those described for Alternative 3. No Action Alternative With the No Action Alternative, there would be no construction; therefore, there would be no chance for project sediment to enter San Diego Bay. 3.8.3 Mitigation No mitigation measures are required because indirect impacts will be addressed as discussed in Section 3.6 (Hydrology, Water Quality, Stormwater Runoff). 3.9 Floodplains 3.9.1 Affected Environment A concrete -lined channel is located along the south side of Plaza Boulevard just west of Euclid Avenue. The channel has concrete walls and a concrete bottom. Minor work is proposed adjacent to the drainage channel in conjunction with this improvement project and there would be no adverse impact. The portion of Plaza Boulevard between I-805 and Highland Avenue is shown on the Flood Insurance Rate Maps as in the 100-year floodplain zone, in both the 100-year floodplain and the designated floodway. 3.9.2 Impacts Alternative 3 A location hydraulic study was prepared by Dokken Engineering for the project in January 2003 (Appendix J). The study addressed the following actions; (1) whether the proposed project would encroach on the 100-year floodplain, and, if so, if the encroachment is adverse; (2) performed a risk assessment associated with any possible encroachment, including recommendations for mitigation measures if needed. Based on the hydraulic study, a segment of this project lies in an established floodplain and designated floodway. Because the proposed work would not raise the profile of Plaza Boulevard and the widened roadway would only replace small 3-32 Plaza Boulevard Widening Environmental AssessmenUlnitial Study IKl40 Plaza Blvd EA_ISI.doc 7/27/2005 401 61/ Chapter 3 Affected Environment, Impacts, and Mitigation 1 3 1 11 portions of sidewalk, parking lots, or other man-made features already functioning in the floodplain, no impacts would occur to the 100-year floodplain. Alternative 1 Similar to Alternative 3, no impacts would occur to the 100-year floodplain under Alternative 1. Alternative 2 Similar to Alternative 3, no impacts would occur to the 100-year floodplain under Alternative 2. No Action Alternative No impacts would occur to the 100-year floodplain under the No Action Alternative. 3.9.3 Mitigation No mitigation measures are required for any of the alternatives. 3.10 Historic and Archaeological Preservation 3.10.1 Affected Environment The Area of Potential Effect (APE) for cultural resources and the built environment was established in coordination with the Department and the FHWA. For this widening project, the APE includes all areas of existing and proposed right-of-way. APE maps are attached in the Historic Property Survey Report (HPSR), Appendix K. A Historic Resources Evaluation Report (HRER) for the widening of Plaza Boulevard was prepared in October 2002. Seventy-four assessor's parcels were -determined to be included in the project and, for the purposes of the architectural study, they were included in the APE. Twenty of these parcels have no buildings or structures on them. Records searches for the proposed project identified one structure within the APE that had been assessed as not eligible for the National Register of Historic Places (National Register) or the California Register of Historical Resources (California Register). During the field reconnaissance on September 18, 2002, an architectural survey was conducted, and three buildings within the APE were identified as built prior to 1957. None of them are recommended as eligible for the National Register or the California Register. Plaza Boulevard Widening Environmental Assessment/Initial Study 11040 Plaza Blvd EA ISl.doc 7/27/2005 3-33 Chapter 3 Affected Environment, Impacts, and Mitigation The remaining 50 parcels had a total of 1 structure (a pool), 31 buildings, and 25 complexes that were identified as being constructed after 1957. The treatment of these buildings follows the "Caltrans Interim Policy for the Treatment of Buildings Constructed in 1957 or Later," and they were not considered significant resources by this study. Section 106 of the National Historic Preservation Act requires a federal agency to take into account the effects of its undertakings on properties included in or eligible for inclusion in, the National Register and to provide the Advisory Council on Historic Preservation the reasonable opportunity to comment. To comply with applicable sections of the National Historic Preservation Act and the implementing TPRe.Iatinnc of 0,- A,i..':cnn' r'ornc0. nn T-TI stnric Pre ^line nn T-T*,P fnr �t1P widening or riaza Boulevard was prepared in October 2vu2. i his report summarizes the findings of the HIRER as discussed above. No archaeological surveys were conducted for the proposed project because no previously undisturbed ground would be disturbed by the proposed project. An archaeological survey of two alternative staging areas was conducted and the results were negative; no archaeological sites were identified (Appendix K). The State Historic Preservation Officer is expected to concur with these findings. 3.10.2 Impacts Alternative 3 Because the historic properties identified are not eligible for listing on the National Register or the California Register, it is concluded that no impacts to historical resources would occur from the proposed project. Alternative 1 Impacts would be the same as those described for Alternative 3. There would be no impacts to historical resources from the proposed project. There are no archaelogical sites in the project area and there would be no impacts. Alternative 2 Impacts would be the same as those described for Alternative 3. There would be no impacts to historical resources from the proposed project. There are no archaelogical sites in the project area, and there would be no impacts. 3-34 Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Pion Blvd EA_ IS1. doc 7/272005 -)1 L T1i c�� Chapter 3 Affected Environment, Impacts, and Mltigatlon 1 1 1 3 1 n No Action Alternative There are no historical or archaeological resources; therefore, no impacts would occur. 3.10.3 Mitigation There would be no adverse impacts; no mitigation measures are required. No historic properties were identified as eligible for listing on the National Register or California Register for all three altematives; therefore, no mitigation measures are required. 3.11 Hazardous Waste Sites 3.11.1 Affected Environment An Initial Site Assessment was completed by Dokken Engineering for the project area in December 2002 (Appendix L). A site reconnaissance was performed on June 6, 2002, and August 30, 2002. The following is a summary of the Initial Site Assessment: • There are two main gasoline/diesel fuel service stations in the project study area: Arco Smog Pros, located at 1540 East Plaza Boulevard, which has five underground fuel storage tanks; and Thrifty Oil, located at 1606 East Plaza Boulevard with three underground fuel storage tanks. • Electric and telephone lines extend across Plaza Boulevard at each intersection between Highland Avenue and Euclid Avenue. Pole -mounted transformers accompany the power lines at various locations along the street. • Miscellaneous debris has accumulated on the northern side of Plaza Boulevard between Grove Avenue and Euclid Avenue. This debris does not pose an environmental threat to the project. A records search of the project area disclosed several sites listed on local, state, and federal databases. Although many of theses sites are on or near the alignment, they do not pose a threat to the environmental integrity of the project. There were two open Leaking Underground Storage Tank Cases and one open toxic release case. Three areas of groundwater contamination were identified at the following locations, as discussed in more detail below: Arco Smog Pros, Thrifty #105, and Mr. Best Cleaners. Plaza Boulevard Widening Environmental Assessment/Initial Study 11040 PIA ,, Blvd EA_ IS1. doc 7/27/2005 3-35 Chapter 3 Affected Environment, Impacts, and Mitigation 3.11.2. Impacts Alternative 3 Based on the field reconnaissance, no environmental issues that would require immediate attention were revealed. Storage of a 55-gallon drum containing wastewater was observed behind the Arco Smog Pros service station located at 1540 East Plaza Boulevard. The drum had an approved Department of Transportation label affixed to it, and the label was accurately filled out. The drum was stored in a partially bermed area, and full secondary containment was not provided. During a records search the following three cases were identified. underground fuel tanks occurred in 1986, 1988, and in 1992. Remediation occurred and the County Department of Environmental Heath closed the cases. A case opened due to a release on 10/18/01 remains open. According to County records, there are ongoing assessments of the extent of hydrocarbon contamination within the soil and groundwater. The installation of two borings and two groundwater monitoring wells were conducted for the purpose of ongoing groundwater monitoring. Groundwater in the areas was found to be between 14.1 meters and 14.7 meters (46.5 feet and 48.3 feet) below ground surface. Analyses conducted on groundwater during the second quarter of 2002 revealed the presence of total petroleum hydrocarbons as gasoline (TPHg) and benzene, toluene, ethylbenzene, and total xylene (BTEX) concentrations in three of the five existing monitoring wells. Because the location of the groundwater wells where the contamination was found is not in the area of proposed widening, and due to the depth to groundwater in the area, the risk of contamination is extremely low. As such, no further exploration of the contamination of the site is recommended with the current design plans. Thrifty #105, 1606 East Plaza Boulevard - A release from a tank of unleaded gasoline was reported on 1998. The soil was impacted and four fuel tanks at the site were removed. According to the County records, there is ongoing quarterly monitoring of two groundwater wells. Free product removal by hand bailing has occurred from one of these wells since April 1998 on a weekly basis. Three additional wells were installed by in June of 2001. These wells were installed to address concerns regarding hydrocarbon -contaminated groundwater. Groundwater in the areas was found to be between 14.4 meters and 14.8 meters (47.4 feet and 48.8 feet) below ground surface. The proposed widening would impact one of the five monitoring wells at the site. As such, the well would be abandoned and re -bored 3-36 Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza 6vd EA_ISf.doc 7/2/2005 SIM 1 1 Chapter 3 Affected Environment, Impacts, and Mitigation 1 1 1 fi during the construction of the proposed project. The groundwater in the area is at a depth where shallow surface contamination is unlikely. The contamination found at this site should not affect the widening of Plaza Boulevard. At the time of construction, a monitoring well will have to be installed to replace the abandoned one within the area of widening. Mr. Best Cleaners,1210 East Plaza Boulevard #49 - The records of groundwater testing from three of the five monitoring wells at this site show a decrease in the levels ofperchloroethylene contamination. Due to the depth to groundwater in the area, the risk of contamination is extremely low. As such, no further exploration of the contamination of the site is recommended with the current design plan. Human hazards exist from the high voltage electricity in the power lines located within the project site. These utilities should be properly managed during construction activities. Alternative 1 Hazardous waste impacts would be the same as those described for Altemative 3 and would be alleviated through implementation of the mitigation measure discussed below. Alternative 2 Hazardous waste impacts would be the same as those described for Altemative 3 and would be alleviated through implementation of the mitigation measure discussed below. No Action Alternative Under the No Action Alternative, Plaza Boulevard would not be widenedand no physical improvements would occur to the roadway. No changes would occur to hazardous waste conditions, and impacts to hazardous materials from the project would not occur. 3.11.3 Mitigation For all three alternatives, the following mitigation measure shall be implemented: • At the time of construction, a monitoring well shall be installed to replace the well at the Thrifty #105 that must be abandoned because it is within the area of widening. On -going monitoring of the well shall be the responsibility of the property owner. Plaza Boulevard kWdening Environmental Assessmenbinitial Study X140P,B2e Blvd EA ISI.doc 7/27/2005 3-37 Chapter 3 Affected Environment, Impacts, and Mitigation 3.12 Visual Resources Appendix M contains the Visual Impact Assessment that was prepared for the project by Dokken Engineering (2005). 3.12.1 Affected Environment Various laws and regulations pertain to visual impact studies of highway projects. The process used in this visual impact study generally follows the guidelines outlined in the publication "Visual Impact Assessment for Highway Projects," Federal Highway Administration (FHWA), March 1981. The City of National City General Plan was reviewed to ensure the proposed action's consistency with the General Plan The Plaza Boulevard corridor is primarily an auto -oriented commercial area consisting of numerous strip malls and a variety of freestanding commercial buildings, including retail, motels, offices, gas stations, medical businesses, and restaurants. There is also both old and new multi -family residential land use. Two older, detached, single-family residences exist on the north side of Plaza Boulevard just east of I-805. The older commercial development tends to have little or no landscaping while some of the newer commercial development has attractive, well -maintained mature landscaping. In some of these developments, direct access to the street has been limited. This not only contributes to more effective traffic patterns, but to visual continuity as well. The corridor is in transition and is gradually being upgraded as new private development occurs. The existing streetscape ranges from well - landscaped street -oriented planting — particularly outside the right-of-way -. to commercial buildings surrounded by pavement with no landscaping. There is a short raised median with enhanced paving east of N Avenue. Two landscaped medians are within the Department right-of-way at the I-805 undercrossing. There is also decorative slope paving under the freeway itself. The visual experience for drivers and passengers for the entire length of Plaza Boulevard tends to reflect a variety of architecture styles, parking arrangements, and landscape treatment. The slightly curving road is relatively level west of I-805 but gets steeper as it approaches Euclid Avenue. In this area, the landform is more pronounced and the visual experience tends to be less constrained. Although the 3-38 Plaza Boulevard Widening Environmental Assessment/Initial Study IX 140 Plaza Blvd E4_ISI. dx 7/27/2005 11 911 j Cf7 Chapter 3 Affected Environment, Impacts, and Mitigation r il viewshed is more open visually east of I-805, it still consists of mainly commercial development with some residential use and open areas on both sides of the road. The intersection with I-805 provides a sense of gateway to that part of the city. The ramps within the Department right-of-way are heavily landscaped and tend to enhance the entry experience from the freeway. However, except for the small landscaped medians, little or nothing in terms of visual amenity exists near I-805 on Plaza Boulevard itself. The visual quality of the project viewshed is low to moderate. Views are primarily limited to the immediate foreground and display the visual clutter of signs, buildings, parking lots, and vehicles. The roadway is lined with buildings of varying shapes, designs, and colors. Continuity in terms of a unifying streetscape theme is virtually nonexistent. The only real visual continuity is from the roadway itself. The intactness of the corridor is limited. Although topographic relief at the eastern end of the project area does add visual interest, there are few distinct landscape components or urban design elements that combine to create a vivid, memorable visual experience. However, the newer developments have better building design and are generally well landscaped, which contributes to an improved visual experience. . As an entry point to National City from I-805, the only real visual amenity is provided within the Department right-of-way. Little or nothing else in this area contributes to providing an attractive approach to this part of the city. For example, in approaching Plaza Boulevard from the north, the large parking lot and freestanding restaurant with little or no landscape detracts from the sense of arrival. The overall visual quality would be uniformly low if not for the presence of the more recent architecture and the generally mature landscape associated with the newer private developments, as well as the open areas at the east end of the project area and within the Department right-of-way. 3.12.2 Impacts Alternative 3 The roadway widening would result in a variety of visual impacts within the corridor. Although it can be reasoned that the road improvements would be consistent with the existing visual character, they would still result in diminished visual quality. This would be mainly because of the removal of existing roadside visual resources and the Plaza Boulevard Widening Environmental Assessment/Initial Study 15110 Pleze Blvd EA_I51. inc 7/27/2005 3-39 Chapter 3 Affected Environment, Impacts, and Mitigation addition of pavement. Existing plant material and landscaped buffer areas would be removed. Retaining walls and sound walls would be built. The roadway itself would be widened. The current space between some buildings and the proposed construction would be greatly reduced. Each of these conditions would contribute to creating some level of adverse visual impacts. The existing plant material to be removed would not only eliminate a portion of the landscaped buffer between the street and the adjoining buildings and parking lots, it would also compromise the already limited streetscape amenity. This condition would occur in several locations. Between N Avenue and I-805, some locations would have as little as 0.18 meter (0.6 feet) from the back of sidewalk to the building. in another visual element to the viewshed. The existing slope paving under I-805 would be removed and replaced with retaining walls. These conditions, combined with adding considerably more paving, would result in a moderate loss of visual quality and a cumulative moderate level of adverse visual impacts. Moderate impacts could be mitigated within 5 years using conventional practices. This Visual Impact Assessment for the Plaza Boulevard Widening project is consistent with many of the general concepts proposed for Philippine Village and does not preclude any of the Philippine Village design objectives. The concepts for the Philippine Village include the introduction of native Philippine plants and the use of hardscape textures and colors that can be found in the Philippines. Alternative 1 Impacts to visual resources would be the same as those described for Alternative 3. Alternative 2 Impacts to visual resources would be the same as those described for Alternative 3. No Action Alternative There would be no construction under the No Action Alternative; therefore, no visual impacts would occur. 3.12.3 Mitigation To compensate for the loss of landscaping and removal of decorative abutment slope paving associated with the proposed widening, urban design and landscape treatments would be provided within the Plaza Boulevard project area. This would include 3-40 Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza Blvd EA ISl.doc 7/272005 n 99 Chapter 3 Affected Environment Impacts, and Mitipatlon e a 1 1 1 1 3 11 4. j adding landscaped medians at various locations, providing architectural treatment of the walls, and undergrounding utilities. The landscape plan would mainly focus on planting roadway medians, access driveways, and parking lots. Street trees would be provided where space allows. The landscape plan would be coordinated with and reviewed by the Community Development Commission for consistency with the proposed Philippine Village enhancement. The landscape plan would also be prepared in accordance with the City's adopted Design Guidelines and Landscape Guidelines. Philippine Village is a project of the Community Development Commission of National City. The vision for Philippine Village is focused on improving the lives of the residents, business owners, and visitors of National City. Philippine Village intends to accomplish this by creating opportunities to demonstrate and educate the visitors about Filipino heritage and Filipino contributions to the history and growth of the San Diego region. Visual mitigation consists of incorporating a variety of urban landscape design techniques. Mitigation measures include landscape treatment of raised medians, street -oriented parkway planting, architectural treatment of retaining and sound walls, creating pedestrian nodes, redesigning parking lots and driveways, undergrounding existing overhead utilities, and providing decorative signage and fencing. The urban design vocabulary proposed in the Philippine Village enhancement plan will be incorporated where feasible. None of the mitigation measures for this project depend upon execution of the Philippine Village plan. The mitigation measures described below are intended to promote visual unity, enhance aesthetic quality, and establish a unique aesthetic character within the project corridor while mitigating for the visual impact of the project improvements. Landscape Treatment The primary mitigation measures will be from landscape treatment, particularly in raised medians and parkway planting. Other landscape treatment will be in the redesigned parking lots, pedestrian areas, and at walls. The City is acquiring additional right-of-way that would allow street tree and parkway planting in some areas. Medians Raised medians will be a key visual mitigation measure and will provide an opportunity for community enhancement. The medians will be landscaped where the Plaza Boulevard Widening Environmental AssessmenUlnitial Study 1K140 Plan BNd E4 ISl.doc 7/27/2005 3-41 Chapter 3 Affected Environment, Impacts, and Mitigation width permits and will feature enhanced paving such as stamped and colored concrete in those areas too narrow to plant. Ornamental signage will be incorporated into the median at major entry points on Plaza Boulevard, particularly at the I-805 interchange. Pedestrian Nodes Small pedestrian plaza areas will be developed at intersection corners where right-of- way allows. They will combine plant material; hardscape; and street furniture such as benches, bollards, and trash receptacles. Enhanced paving in a variety of patterns in stamped and colored concrete will be similar in color to the patterns used in the medians, but suitable for pedestrian use. Parkways Areas for parkway improvements will range from planted narrow strips at the back of planned sidewalks to small pedestrian areas similar to the pedestrian areas described above. Street tree planting is a critical element in the landscape concept and will occur in both the parkway strips and in sidewalks where space allows. Plant materials will be compatible in theme, color, and texture to those used elsewhere. Hardscape will consist of decorative paving similar to that proposed for medians and driveways. Driveways/Parking One driveway at the Eye Care Associates building at the north east comer of the Plaza Boulevard/Palm Avenue intersection would be removed. The driveway that would be removed currently provides access to the parking lot from Plaza Boulevard. The project would add one new driveway to improve access to the parking lot from 12th Avenue. Currently there is one driveway facing 12th Avenue and serving the parking lot. At the conclusion of the project there would be two driveways facing 12th Avenue and serving the parking lot. No other driveways would be removed with the project. Additionally the parking lot at California Produce on the south side of Plaza Boulevard and west of I-805 would be reconfigured. The parking lot currently has two driveways. Two driveways would be provided at the conclusion of the project. Parking lot reconfiguration would be performed to maximize the number of available parking spaces. The driveway and parking lot improvments will be redesigned or reconfigured to accommodate property access while enhancing the visual experience by introducing 3-42 Plaza Boulevard Widening Environmental Assessment/Initial Study 11(140 Pleze 800 BA_ISI_004 7/27/2005 /0/ Chapter 3 Affected Environment, Impacts, and Mitigation texture, color, and pattern. Planting will be included adjacent to reconstructed driveways where space permits The driveway/parking lot surfaces will be constructed of stamped concrete pavers in geometric patterns with natural weathered -looking textures. Retaining and Sound Walls Retaining and sound walls will be designed to minimize their visual impact. Particular attention will be given to wall texture, pattern, and color. All walls will be protected with anti -graffiti coating. The tieback retaining walls located under the I-805 undercrossing will be designed to recognize Filipino heritage. Embossed and painted into the concrete will be words depicting traditional Filipino poems or quotes. This is consistent with the Philippine Village design guidelines and provides a backdrop for descriptive murals or other interpretive material as a part of the program. Sound walls are proposed at two locations for noise abatement. One wall would be constructed for the two private single-family residences located between Grove Street and 12th Street. A second sound wall is proposed for the Comfort Inn swimming pool area. At this location, the wall will be transparent to allow viewers to see out. Undergrounding Utilities The undergrounding of the remaining aboveground utilities will result in positive changes in the visual environment. Fencing Areas that require fencing will have decorative fencing or railing that minimizes visual impacts. Ornamental railing will be designed to be consistent with the established landscape theme along the length of the project corridor. All fencing will be protected with anti -graffiti coating. 3.13 Utilities/Emergency Services 3.13.1 Affected Environment Electric San Diego Gas and Electric (SDG&E) has existing overhead and underground electric utilities located within Plaza Boulevard, between Highland Avenue and Euclid Avenue. Plaza Boulevard Widening Environmental Assessmentdnitial Study 1KIaO Rare Blvd EA_ISl.doc 7/27/2005 3-43 Chapter 3 Affected Environment, Impacts, and Mitigation Natural Gas SDG&E has existing underground gas utilities located within Plaza Boulevard, between Highland Avenue and Euclid Avenue. Telephone SBC (previously Pacific Bell) has existing overhead and underground telephone utilities located within Plaza Boulevard, between Highland Avenue and Euclid Avenue. Cable Service Cox Communications has existing overhead and underground Cable Television (CATV) and fiber-optic utilities located within Plea Boulevard het ,-o' TTivh�a i Ave1u:, and Lucild tivcnue. Sewer National City has existing sewer systems located within Plaza Boulevard, between Highland Avenue and Euclid Avenue. Storm Drain National City has existing storm drainage systems located within Plaza Boulevard, between Highland Avenue and Euclid Avenue. Water Sweetwater Authority has existing water systems located within Plaza Boulevard between Highland Avenue and Euclid Avenue. Fire There are no fire and emergency services housing or facilities located along Plaza Boulevard. The nearest fire station is located at 2333 Euclid Avenue, near the eastern terminus of the proposed project. Fire station headquarters are located at 333 East 16th Street. Fire department personnel provide basic life services, and a contractor provides paramedic services for the city. Law Enforcement The National City Police Department provides basic police services for the area. The Police Department is located at 1200 National City Boulevard, about 0.8 km (0.5 mile) southwest of the western terminus of the project. 3-44 Plaza Boulevard Widening Environmental Assessment/Initial Study 11{140 Plaza Blvd EA_IS1. dnc 71'27/2005 a 11 /0 - Chapter 3 Affected Environment, Impacts and Mitifiatlon The California Highway Patrol, in conjunction with the San Diego County Sheriff and National City Police, provides primary law enforcement service within the I-805 transportation corridor. 3.13.2 Impacts Alternative 3 Electric The proposed street widening project would result in the relocation of various aboveground electric utility structures. Multiple large -sized handholes, 1.5 meters (60 inches) by 2.3 meters (90 inches) by 2.3 meters (90 inches); 3-phase fuse cabinets; and 3-phase terminators would need to be relocated in or behind the proposed sidewalk. Four 3-phase transformers, one single-phase transformer, and multiple smaller handholes in or behind the proposed sidewalk would also need to be relocated. New underground conduit systems associated with these aboveground structures would need to be installed to intercept the existing systems. In addition, existing overhead electric systems located along Plaza Boulevard near the vicinity of Palm Avenue will be placed underground. Relocation of utilities is included in the project design and impacts would not be adverse. Natural Gas No gas main relocations are anticipated as a result of the proposed widening project. Existing valve covers may need to be adjusted to fmal grade. Relocation of utilities is included in the project design and impacts would not be adverse. Telephone Various telephone pedestals and underground conduit systems associated with these pedestals would need to be relocated in or behind the proposed sidewalk. One telephone manhole located in the intersection of Plaza Boulevard and Palm Avenue may need to be adjusted to fmal grade. In addition, existing overhead telephone systems located along Plaza Boulevard near the vicinity of Palm Avenue will be placed underground. Relocation of utilities is included in the project design and impacts would not be adverse. Cable Service Multiple fiber-optic and CATV handholes would need to be relocated in or behind the proposed sidewalk. In addition, existing overhead CATV systems located along Plaza Boulevard Widening Environmental Assessment/Initial Study I K140 Plaza awa EA—I51. doc 7/27/2005 3-45 Chapter 3 Affected Environment, Impacts, and Mitigation Plaza Boulevard near the vicinity of Palm Avenue will be placed underground. Relocation of utilities is included in the project design and impacts would not be adverse. Sewer No sewer system relocations appear necessary as a result of the proposed widening project. However, manhole covers may need to be adjusted to final grade. The impacts of adjustment of manhole covers would not be adverse. Water Water system relocations will consist of the relocation of water meters and fire ? f 4-4 No adverse impacts would result from water system component relocations. Storm Drain Multiple storm drain inlets would need to be removed as a result of the proposed widening project. New storm drain systems would be designed to provide for adequate drainage of Plaza Boulevard. Relocation of public facilities, such as storm drains, is included in the project design and impacts would not be adverse. Fire No impacts would occur to fire services as a result of the project. However, during the construction period (10 to 12 months), emergency vehicle response time delays could occur. Coordination with emergency services and law enforcement would occur to minimize response time delays. A traffic management plan will be implemented by the project contractor that includes provisions requiring that fire protection and law enforcement services access remain open at all times during construction. Law Enforcement No law enforcement impacts would occur as a result of the project. However, during the construction period (10 to 12 months), law enforcement response time delays could occur. Coordination with emergency services and law enforcement would occur to minimize response time delays. A traffic management plan will be implemented by the project contractor that includes provisions requiring that fire protection and law enforcement services access remain open at all times during construction. 3-46 Plaza Boulevard Widening Environmental Assessment/Initial Study IN140 Plaza BNd EEA_IS1. dx 7/27/2005 fl Chapter 3 Affected Environment, Impacts, and Mitigation u 11 In summary, no permanent impacts to utilities (electric, natural gas, telephone, cable service), sewer, storm drains, or emergency services (fire and law enforcement) would occur from the proposed project. Relocation of existing utilities is incorporated into design plans to ensure adequate service during project construction. Alternative 1 Impacts under Altemative 1 would be the same as those described for Alternative 3. Impacts from widening near Central Elementary School would not be adverse because there are no areas of frequent human habitation adjacent to the roadway, nor would road widening conflict with the ingress or egress to the school. Alternative 2 Impacts under Alternative 2 would be the same as those described for Alternative 3. No Action Alternative No construction would occur under the No Action Alternative; therefore, no impacts during construction would occur. 3.13.3 Mitigation For all three alternatives, project design measures will be implemented to ensure adequate utilities are provided to the proposed project area. In addition, a traffic management plan will be implemented that requires access maintenance at all times for emergency service vehicles. 3.14 Traffic and Transportation Appendix G contains the full results of a traffic study that was prepared for the project by LL&G (2005). 3.14.1 Affected Environment Regional Circulation Plaza Boulevard is an east -west tending transportation corridor in National City. I-805 is near the middle of the improvement project and provides north -south access through the study area. Plaza Boulevard Widening Environmental AssessmenUlnitial Study 11040 Pleie Blvd EA ISI don 7/27/2005 3-47 job Chapter 3 Affected Environment, Impacts, and Mitigation Local Circulation The primary roadways that serve the project area are I-805, Plaza Boulevard, Highland Avenue, Palm Avenue, and Euclid Avenue. L Avenue, N Avenue, and Grove Street provide secondary access through the study area. Expected daily traffic volumes on city streets within the study area were obtained based on data from local agencies and from field observations. Existing average daily traffic (ADT) levels on Plaza Boulevard range from 11,370 vehicles on the west end near Highland Avenue to 34,620 vehicles near I-805. East of Euclid Avenue, the current ADT level is 25,380 vehicles. Predicted traffic for the Plaza Boulevard corridor ranges from 13,080 ADT west of Highland Avenue to 39,810 ADT near I- ,{, traffic in the midsegments both east and west of I-805. Three segments of Plaza Boulevard are currently at LOS D, as shown in Table 3.14.1. Table 3.14.1 Average Daily Traffic and Level of Service — Plaza Boulevard Segment Average Daily Traffic 2002 LOS 2002 Average Daily Traffic 2030 Year2030 LOS without Widening Year 2030 LOS with Widening Plaza Boulevard West of Highland Avenue 11,370 A 13,080 A A Highland Avenue to L Avenue 18,830 B 21,650 C A N Avenue to Palm Avenue 30,420 D 34,980 D B Palm Avenue to 1-805 34,620 D 39,810 E C Grove Street to Euclid Avenue 32,780 D 37,700 E C East of Euclid Avenue Srnlrre• I I Rf: mrm 25,380 C 29,190 C B Table 3.14.2 identifies existing and future intersection LOS at major intersections along the project route. 3-48 Plaza Boulevard Widening Environmental Assessment/Initial Study IK140 Pleze BNd EA_/S1dor: 7/27/2005 1 1 1 /�'7 1 Chapter 3 Affected Environment, Impacts, and Mitigation 1 1 1 1 11 11 Table 3.14.2 Existing and Future Signalized Intersection Operations Intersection Peak Hour Existing Year 2030 (With existing geometry) Year 2030 (With proposed , geometry)' Delay LOS Delay' LO82 Delay' LOS' Plaza Boulevard/Highland Avenue AM PM 25.2 33.8 C C 3 36.0 .0 C D D 34.5 34.5 C C Boulevard/Palm Avenue AM PM 28.1 40.4 CPlaza D D 5 58.3.3 E E 39.3 39.3 D D Plaza Boulevard/I-805 SB Ramps AM PM 28.3 28.3 C C 48.2 48.2 C D 4 48.4 C D.4 D Plaza Boulevard/I 805 NB Ramps AM PM 23.8 29.0 C C 26.6 51.8 C D 26.2 33.0 C C Plaza Boulevard/Grove Street AM PM 27.4 27.4 C C 37.2 37.2 D D 28.7 28.7 C C Plaza Boulevard/Euclid Avenue AM PM 34.8 34.8 C C 42.2 42.2 D D 33.8 33.8 C C Source: LL&G 2005 Notes: 1. Average Delay expressed in seconds per vehicle. 2. Level of Service. 3. Based on lane configurations shown in the traffic report. LOS De ay per vehicle (seconds) A 510.0 B 10.1 to 20.0 C 20.1 to 35.0 D 35.1 to 55.0 E 55.1 to 80.0 F > 80.0 The Plaza Boulevard/I-805 interchange was analyzed using the Intersecting Lane Vehicles (ILV) methodology. This methodology is based on the concept that the capacity of intersecting lanes of traffic is 1,500 vehicles per hour. Below 1,200 vehicles per hour, there is stable flow; between 1,200 and 1,500 vehicles per hour the flow becomes unstable with considerable delays; and above 1,500 vehicles per hour there is severe delays and heavy congestion. Table 3.14-3 shows the existing and future (2030) ILV operations. • Plaza Boulevard Widening Environmental Assessment/Initial Study 11040 Plaza Blvd EA_ISI. doc 7/27/2005 3-49 /off Chapter 3 Affected Environment, Impacts, and Mitigation Table 3.14-3 Existing and Future Intersecting Lane Vehicles Analysis Intersection Peak Hour Existing Operating Level (ILV/Hour) 705 Capacity Under Year 2030 (with existing geometry) Year 2030 (with proposed geometry) Total Operating Level (ILV/Hour) 810 Capacity Under Total Operating Level (ILVIHour) 810 Capacity Under I-805SB Ramps/ Plaza Blvd AM PM 1173 Under 1348 Near 1348 Near I-805NB Ramps/ Plaza Blvd AM 898 Under 1033 Under 1033 Under PM 1130 Under 1313 Near 1313 tinder Grove Street/ Plaza RL',1 AM 1194 Under 1373 Near 1373 Under PM 4209 Mgar 1?a1 t,lo,r +1a1 lime, Parking LL&G also conducted a parking study along the proposed improved Plaza Boulevard alignment. The complete parking study is included in Appendix E. The parking study evaluated seven key parking areas along Plaza Boulevard with an anticipated loss of parking from implementation of the proposed action: 1. Wherehouse Music parking lot 2. Western Dental parking lot 3. Eye Care Associates parking lot 4. California Produce/Apartment Complex parking lot 5. Jimmy's Family Restaurant parking lot 6. AutoZone/Social Security Administration/Car Wash curbside and parking lot 7. Seafood Market/Shopping Mall curbside and parking lot Wherehouse Music Parking Lot The parking lot is located on the northeast corner of Plaza Boulevard and N Avenue. The parking lot, which serves other businesses as well as Wherehouse Music, has 123 parking spaces. The peak parking demand occurs on Friday at 6:00 PM with a demand of 122 spaces. The existing parking supply does not meet City parking ordinance requirements with a deficit of 17 spaces. 3-50 Plaza Boulevard Widening Environmental Assessmentdnitial Study IK140 Plaza Blvd EA_IS I_doc 7/27/M05 e els /c / Chapter 3 Affected Environment, Impacts, and Mitigation 3 i.J Western Dental Parking Lot The parking lot is located on the northwest comer of Plaza Boulevard and Palm Avenue. The parking lot, which serves the dental offices, has 28 parking spaces. Two driveways on Plaza Boulevard and Palm Avenue provide access. The peak parking demand occurs mid -weekdays with a demand of 18 spaces. The existing parking supply exceeds City parking ordinancerequirements with a surplus of 3 spaces. Eye Care Associates Parking Lot This parking lot, which serves other businesses as well, is located at the northeast corner of Plaza Boulevard and Palm Avenue. The triangular parking lot has 21 parking spaces and access is provided by three driveways. The peak parking demand occurs on Thursday at 5:00 PM with a demand of 20 spaces. The existing parking supply does not meet City parking ordinance requirements with a deficit of 6 spaces. California Produce/Apartment Complex Parking Lot This parking lot, which serves California Produce and an apartment complex, is located on the south side of Plaza Boulevard between Palm Avenue and I-805 southbound ramps. The parking lot has 38 spaces with no curbside parking. The peak parking demand occurs on Friday at 1:00 PM with a demand of 38 spaces. The existing parking supply does not meet City parking ordinance requirements with a deficit of 4 spaces. Jimmy's Family Restaurant Parking Lot This parking lot, which exclusively serves Jimmy's Family Restaurant, is located on the southwest corner of Plaza Boulevard and the I-805 southbound ramps. The parking lot has 103 spaces with no curbside parking. The peak parking demand occurs on Saturday at 11:00 AM with a demand of 70 spaces. The existing parking supply exceeds the City parking ordinance requirements with a surplus of 29 spaces. AutoZone/Social Security Administration/Car Wash Curbside and Parking Lot This parking lot, which serves AutoZone, the Social Security Administration, and a car wash, is located on the southeast corner of Plaza Boulevard and Euclid Avenue. The parking lot has 63 spaces, which includes nine curbside parking spaces on Plaza Boulevard fronting the properties. The peak parking demand occurs on Friday at 12:00 PM with a demand of 54 spaces. The existing parking supply exceeds the City parking ordinance requirements with a surplus of 6 spaces. Plaza Boulevard Widening Environmental Assessment/Initial Study 15140 Plaza Blvd EA JSI.doc 7/27/2005 3-51 /to Chapter 3 Affected Environment, Impacts, and Mitigation Seafood MarketShopping Mall Curbside and Parking Lot This parking lot, which serves many small retail businesses, is located on Plaza Boulevard east of Euclid Avenue. The parking lot has 179 spaces, which includes 23 curbside parking spaces on Plaza Boulevard fronting the properties. The peak parking demand occurs on Friday at 5:00 PM with a demand of 127 spaces. The existing parking supply exceeds the City parking ordinance requirements with a surplus of 21 spaces. 3.14.2 Impacts Alternative 3 Traffic As shown in Traffic Table 3.14.1, predicted ADT on these segments of Plaza Boulevard will increase in the future, thus decreasing the corresponding LOS without widening l b proposediletion_i4ulf- will incle45e traffic, The analysis used a 0.5 percent per year -compound growth factor to estimate year 2030 ADT. Widening of the roadway to the National City General Plan Circulation Element status of a six -lane Prime Arterial would result in acceptable LOS on these segments of Plaza Boulevard. • The proposed project would have a positive effect and would improve the LOS of Plaza Boulevard. It was determined that all key intersections and segments in the project area would operate at LOS D or better with the proposed widening in year 2030. Without the proposed widening, the following key intersection would operate at LOS E in year 2030: • Plaza Boulevard/Palm Avenue (LOS E, PM peak hour) Without the proposed widening the following segments along Plaza Boulevard would operate at LOS of E in the year 2030: • Palm Avenue to I-805 (LOS E) • Grove Street to Euclid Avenue (LOS E) Therefore, implementation of the proposed project would result in an acceptable LOS with year 2030 traffic volumes as a six -lane roadway. Implementation of the project would have beneficial impacts for the local roadway system. 3-52 Plaza Boulevard Widening Environmental Assessment/Initial Study IK140 Plaza Blvd EA JS1.doc 7/27/2005 11 /// r Chapter 3 Affected Environment, Impacts, and Mitletion 1 A traffic management plan would be prepared prior to construction to minimize traffic impacts during the construction phase as a part of the project design. Parking Wherehouse Music Parking Lot The project would result in the loss of one parking space. The peak parking demand occurs on Friday at 6:00 pm with a demand of 122 spaces of the total 123 available spaces. On Thursday and Saturday there is a parking surplus of between 15 and 62 spaces. The loss of one parking space would not result in an adverse parking impact. As mentioned earlier, the existing parking supply does not meet City parking ordinance requirements and will not with the implementation of the proposed project. Western Dental Parking Lot The project would result in the loss of three parking spaces, resulting in a post -project parking supply of 25 spaces. The loss of three parking spaces would meet City parking ordinance requirements and would not result in an adverse parking impact. Eye Care Associates Parking Lot The project would result in the loss of three parking spaces, resulting in a post -project parking supply of 18 spaces. The peak parking demand occurs on Thursday at 5:00 PM with a demand of 20 spaces. As mentioned earlier, the existing parking supply does not meet City parking ordinance requirements and will not with the implementation of the proposed project. The loss of three parking spaces would result in an adverse parking impact. California Produce/Apartment Complex Parking Lot The project would result in the loss of six parking spaces, resulting in a post -project parking supply of 32 spaces. The peak parking demand occurs on Friday at 1:00 PM with a demand of 38 spaces. As mentioned earlier, the existing parking supply does not meet City parking ordinance requirements and will not with the implementation of the proposed project. The loss of six parking spaces would result in an adverse parking impact. Jimmy's Family Restaurant Parking Lot The project would result in the loss of 15 parking spaces, resulting in a post -project parking supply of 88 spaces. The peak parking demand occurs on Saturday at 11:00 AM with a demand of 70 spaces. The loss of 15 parking spaces would not result in Plaza Boulevard Widening Environmental Assessment/Initial Study PN140 Plaza Blvd EA_IS1.doc 7/27/2005 3-53 //2 Chapter 3 Affected Environment, Impacts, and Mitliation an adverse parking impact and would still exceed City parking ordinance requirements. AutoZone/Social Security Administration/Car Wash Curbside and Parking Lot The project would result in the loss of all nine curbside parking spaces, resulting in a post -project parking supply of 54 spaces. The peak parking demand occurs on Friday at 12:00 PM with a demand of 70 spaces. On Thursday and Saturday there is a parking surplus of between 7 and 41 spaces. The loss of 15 parking spaces would not result in an adverse parking impact and would exceed City parking ordinance requirements. Seafood Market/Shoopinn Mail Curbside and Parkfnn t nt i.he picj,: , would icsuit w cie loss of ail 23 k:urusiue packing spaces, icsuiiing i.i a post -project parking supply of 156 spaces. The peak parking demand occurs on Friday at 5:00 PM with a demand of 127 spaces. The loss of 23 parking spaces would not result in an adverse parking impact and would exceed City parking ordinance requirements. Overall, Alternative 3 would result in a loss of 60 total parking spaces. No unique parking spaces such as handicap, loading/unloading, etc. would be loss under this alternative. Alternative 1 Traffic Impacts would be the same as those described for Alternative 3 and would result in an acceptable LOS with year 2030 traffic volumes as a six -lane roadway. Parking Alternative 1 would result in the loss of 162 parking spaces along the area proposed for improvement. This is the greatest loss of parking spaces among the three development alternatives. No unique parking spaces such as handicap, loading/unloading, etc. would be loss under this alternative. Many of the lost parking spaces are associated with businesses that would be relocated. 3-54 Plaza Boulevard Widening Environmental Assessment/Initial Study IK140 Plaza Blvd EA IS1.dov 7/272005 l //J Chapter 3 Affected Environment, Impacts, and Mitigation Alternative 2 Traffic Impacts would be the same as those described for Alternative 3 and would result in an acceptable LOS with year 2030 traffic volumes as a six -lane roadway. Parking Alternative 2 would result in the loss of 87 parking spaces along the area proposed for improvement. This is the second most parking spaces lost among the three development alternatives. No unique parking spaces such as handicap, loading/unloading, etc. would be loss under this altemative. Many of the lost parking spaces a.e associated %vith businesses that would be relocated. No Action Alternative Under the No Build Alternative, no construction would occur on these segments of Plaza Boulevard. Without roadway widening, LOS would decline and congestion would increase. LOS would degrade to D or E on many segments and several intersections. Table 3.14.1 identifies segment LOS in year 2030 with and without the project and indicates LOS would degrade with the No Action Alternative. Table 3.14.2 identifies intersection LOS, which would also be worse under the No Action Alternative. No parking loss would occur under this alternative. 3.14.3 Mitigation Traffic For all three build alternatives, the proposed project would not result in any adverse traffic impacts, and no mitigation is required. Parking Parking recommendations are included for two of the parking areas: Eye Care Associates and California Produce/Apartment Complex. Eye Care Associates • Change the parking regulation and provide angled parking on the south side of 12th Avenue fronting the property. • Close one of the three driveways and reconfigure the inefficient parking lot. Plaza Boulevard Widening Environmental Assessment/Initial Study IKl 40 Plaza Blvd PA_IS7. doc 7/27/2005 3-55 // V Chapter 3 Affected Environment, Impacts, and Mitigation California Produce/Apartment Complex • Implement a shared parking agreement with Jimmy's Family Restaurant for California Produce employee parking. • Remove the existing gate/wall dividing the California Produce and Apartment Complex parking lots and reconfigure the parking lot. In addition, the widening of Plaza Boulevard would involve curb returns and pedestrian ramps. Any ramps that would be constructed or reconstructed would be done in compliance with the Americans with Disabilities Act. 3.15.1 Affected Environment Geology Portions of the project site are within the Bay Point formation. The overlying soils of the project site consists of Md (Made Land) soils according to the Soil Survey of San Diego County (1973). Made Land consists of smooth, level areas that have been filled with excavated and transported soil material; paving material; and soil material dredged from lagoons, bays, and harbors. Frequently, this land type is used for building sites. The largest areas of Made Land are in the vicinity of San Diego Bay and Mission Bay (U.S. Department of Agriculture, Soil Conservation Service, 1973). Topography Elevation in the project area ranges between approximately 11 meters (36 feet) and 32 meters (106 feet) above mean sea level. The terrain is relatively flat, trending slightly uphill from west to east along the corridor. The regional topography consists ofa series of marine terrace deposits draining into intervening canyons that flow westward toward San Diego Bay. Seismicity The westernmost fault trace of La Nacion fault zone lies approximately 1.06 km (0.66 mile) east of the eastern terminus of the Plaza Boulevard project. This fault zone is considered to be potentially active. Other regional faults include the Rose Canyon, Coronado Banks, San Diego Trough, Elsinore, San Clemente, and San Jacinto faults. 3-56 Plaza Boulevard Widening Environmental Assessmentdnitial Study 1K140 Pleze Blvd EA_IS1 doc 7/27/2006 // Chapter 3 Affected Environment, Impacts, and Mifigafbn 3.15.2 Impacts Alternative 3 Geology Made Land has a high erosion hazard and rapid runoff characteristics. Because the proposed project consists of widening an already existing roadway in a built environment, the potential for impacts from this soil type is low. Construction and design measures would be implemented into the project to ensure that no geological impacts would occur. BMPs would also be implemented to control the potential for erosion. Top.gr phy Because this proposed project is a widening of an already existing roadway, no steep slopes or change in topography would occur. Therfore, no impacts to topography would occur. Seismicity The project site is located in a seismically active area. However, the proposed improvements would be implemented in conformance with the Uniform Building Code, current seismic design specifications of the Structural Engineering Association of California, the Department's "Standard Contract Specifications" and "Special Provisions," the National City grading ordinance, and site -specific geotechnical recommendations. Compliance with these regulations would mitigate any potential unstable earth surface conditions. Therefore, improving the roadway and widening the underpass would be in conformance with these safety standards and would not increase the exposure of people or property to seismic hazards. Alternative 1 Impacts under Alternative 1 would be the same as those described for Alternative 3. Alternative 2 Impacts under Alternative 2 would be the same as those described for Alternative 3. No Action Alternative No construction would occur under the No Action Alternative; therefore, no impacts would occur. Plaza Boulevard Widening Environmental Assessment/Initial Study 11040 Plaza Blvd EA_ISI.doc 7/272005 3-57 //6 Chapter 3 Affected Environment, Impacts, and Mitigation 3.15.3 Mitigation Because there would be no significant impacts, no mitigation measures would be required. 3-58 Plaza Boulevard Widening Environmental Assessment/Initial Study 1X140 Plaza Blvd EAISi.doc 7/27/2005 • 1 117 1 Chapter 4 Cumulative Impacts r 3 1 11 3 Chapter 4 Cumulative Impacts State guidelines implementing CEQA require a discussion of significant environmental impacts that would result from project -related action in combination with "closely related past, present and reasonably anticipated future projects" located in the immediate vicinity to the proposed project (Guidelines for the Implementation of CEQA, Cal. Code Regs., Title 14 § 15130 (b)(1)(A)). These cumulative impacts are defined as "two or more individual effects that, when considered together, are considerable or which compound or increase other environmental impacts" (Guidelines for the Implementation of CEQA Cal. Code Regs., Title 14 § 15355). Federal regulations implementing NEPA (40 CFR §§ 1500-1508) also require that the cumulative impacts of a proposed action be assessed. NEPA defines a cumulative impact as an "impact on the environment which results from the incremental impact of the action when added to other past, present and reasonably foreseeable future actions" (40 CFR §§ 1508.7). Cumulative impacts can result from individually minor but collectively significant actions taking place over a period of time (40 CFR 1508.7). This analysis considers the impacts of the proposed action in conjunction with other projects, in and adjacent to the Plaza Boulevard project area, which may result in greater environmental impacts. For the purposes of this cumulative impact analysis, a list of projects expected to be undertaken or recently implemented within the vicinity of the proposed bridge project has been identified. A number of projects have been included in this cumulative impact analysis. 4.1 Cumulative Projects 4.1.1 Paradise Valley Road Widening A capital improvement project is planned by the City of National City that would widen Paradise Valley Road from 8th Street to the easterly city limits. The project would consist of the installation of curbs, gutters, sidewalks, asphalt concrete pavement, and drainage improvements. The existing sidewalk and dike along the north side of Paradise Valley Road would be removed and replaced with concrete curb, gutter, and sidewalk. The existing open channel along the north side of Paradise Valley Road would be improved. The project would provide continuous Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza Blvd EA_I.SI.dx 7/27/2005 4-1 // Chapter 4 Cumulative Impacts improvements from the San Diego city limit to National City at 8thStreet and Plaza Boulevard, along the north side of Paradise Valley Road, east of the project site. 4.1.2 Various Street Improvements and Signal Interconnections Minor street improvements such as street resurfacing, curb, gutter, and sidewalk installation, and signal interconnections are also planned throughout the city. Due to the small scale of these projects, when combined with the preferred alternative, substantial impacts on natural resources would not occur when assessed from a cumulative viewpoint. This approved project includes the construction of a 12,832 square meter (138,119 square foot) Wal-Mart store near the southwest comer of Plaza Boulevard and Highland Avenue within the National City Redevelopment Project Area. The project will involve the demolition of the existing Fedco buildings. The project includes an owner participation agreement to allow for the project construction. The project is located on a 5.9-hectare (14.6-acre) parcel and will provide 649 parking spaces. Parking is predominantly located to provide access to Highland Avenue. The project site is designated General Commercial in the National City General Plan and is zoned for General Commercial. A focused EIR was certified in January 2003 by National City. 4.1.4 Education Village This approved project includes the demolition of several existing buildings (i.e., service station, auto repair businesses, vacant theatre) and the construction of an education village on two parcels at National City Boulevard and 8th Street. The education village would include a two-story 4,366 square meter (47,000 square foot) building for use by Southwestern College, a two-story 2,323 square meter (25,000 square foot) for use by San Diego County Office of Education for professional staff training, and a three-story parking structure for 453 cars. Approximately 985 square meters (10,600 square feet) of retail use is included in the college building. An additional 80 surface parking spaces would also be provided. The vacation of 9t Street between the two parcels is included to form one large parcel. A Mitigated Negative Declaration was approved in June 2002 by National City. 4-2 Plaza Boulevard Widening Environmental Assessment/Initial Study 11,140 Plaza DNd E4 IS 1. dot: 7/27/2005 t 1 // 7 1 Chapter 4 Cumulative Impacts 4.1.5 Paradise Valley Road Subdivision This is an approved specific plan and subdivision for construction of 38 single-family homes, including grading and construction of new streets to provide access. The 6.7— hectare (16.5 acre) vacant site is located on the south side of Paradise Valley Road, east of the terminus of East 8th Street. The project involves approximately 75,000 cubic yards of grading, all balanced onsite. A Mitigated Negative Declaration was approved in 2001 by National City. 4.1.6 Bonita Creek Specific Plan and Subdivision This project is an approved specific plan and subdivision for 12-single family condominium units. The project is located on Sweetwater Road, east of Plaza Bonita. A Mitigated Negative Declaration was approved in 2002 by National City. 4.1.7 Kalesa Walk Condominiums This project would involve the construction of 28 condominium units north of Plaza Boulevard and west of I-805. Access and egress to the project would not be from Plaza Boulevard but would occur from East 12th Street. This project is not dependent upon the proposed Plaza Boulevard improvements. The City of National City has prepared an Initial Study and proposed a Negative Declaration. 4.1.8 Proposed Philippine Village This project is in the preliminary stages of developing a Master Plan for a Philippine Village, which runs east of Highland Avenue to Euclid Avenue encompassing the area within 152 meters (500 feet) to the North and South of Plaza Boulevard. This area is characterized by several neighborhood shopping centers that cater to Asian consumers, particularly those whose origins are from the Republic of the Philippines. The Community Development Commission of National City, via this master plan effort, desires to provide physical improvements to strengthen theimage of the area. This proposal would also recognize the contributions of these businesses and provide a sense of pride for those of Asian and Philippine descent. No environmental documentation has been completed to date. 4.2 Analysis of Cumulative Impacts The cumulative projects discussed above include a number of constructed, planned, or approved projects within the City of National City. Many of the impacts Plaza Boulevard Widening Environmental Assessment/Initial Study 11(140 Plaza Blvd EA_151.dcc 7/27/2005 4-3 .p Chapter 4 Cumulative Impacts associated with these other projects have been considered in previously prepared environmental documentation, which can be reviewed at the City of National City Planning Department. The other projects will be required to prepare environmental documentation in compliance with National City environmental guidelines. 4.2.1 Land Use and Community Resources From a cumulative standpoint, much of the City is undergoing redevelopment in a currently urban area. This redevelopment is primarily in the downtown area of National City and is not changing current land use designations. This project would not change any current land use designation and therefore would not contribute to 4.2.2 Social and Economic Alterative 3 would remove parking from six businesses but would not result in the displacement of any businesses or farms. The loss of parking would also affect businesses and could reduce customer visitation during construction. Parking impacts for would be mitigated and would not result in cumulatively adverse social and economic effects. Overall beneficial social and economic effect would occur with the project. Emergency vehicular access, traffic levels of service, and public safety would be improved due to project implementation. 4.2.3 Relocation Alternative 3 would remove parking from six businesses but would not result in the displacement of any businesses or farms. Therefore, no adverse relocation cumulative impacts would result. 4.2.4 Climate and Air Quality The completed project does not generate additional air pollution or create a situation that would alter the climate. Thus, the project would not contribute to long-term air quality cumulative impacts. However, there is a potential for short-term construction -related air quality impacts from fugitive dust particles. With the number of other proposed developments in the project vicinity, there is the possibility of simultaneous construction occurring with the proposed action. Each project would contribute to short-term air quality impacts. The construction -related air quality 4-4 Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza Blvd EA_IS 1. dcc 7272005 >o a k i /c/ Chapter 4 Cumulative Impacts 1 1 0 11 t1 1 impacts would be minimized by the required mitigation measures for the proposed project, as well as for all other projects, as a result of the City's standard development review and inspection procedures for all new construction. These mitigation measures would avoid substantial individual project air quality impacts and would not result in cumulatively adverse air quality impacts. 4.2.5 Noise Two single-family residences and one outdoor use could experience permanent increases in the ambient noise level with implementation of the project. These impacts would be mitigated through adoption of the noise abatement measures and therefore would not result in cumulative adverse noise impacts. Cumulative traffic noise impacts in the vicinity of the project are related primarily to existing traffic. However, since the proposed project would not generate additional traffic, the project would not contribute to the cumulative traffic noise impacts. Site specific environmental documentation is required for each project. The City construction noise regulations, inspections, and complaint investigation procedures would assure that construction noise is not substantially adverse. 4.2.6 Hydrology, Water Quality, Stormwater Runoff No streams or rivers flow in or near the project area. Therefore, the proposed project would not alter any existing drainage patterns of the site or nearby area. The use of BMPs would be implemented during construction to ensure no erosion or siltation would occur onsite or offsite. Other projects in the nearby area would also be required to install permanent and temporary construction stormwater controls in accordance with the City's stormwater management regulations and construction inspection procedures. The proposed project is not within the current 100-year flood plain. Therefore, the proposed project would not contribute to cumulative floodplain impacts. Water quality in the proposed project area is affected by runoff from streets, parking lots and other impervious areas. Runoff from these areas, also known as non -point source pollution, can carry petroleum products, bacteria, heavy metals, and other contaminants. To mitigate water quality degradation, the proposed project and all other surrounding development projects would be required to comply with state and federal water quality regulations. This includes compliance with the NPDES permit Plaza Boulevard Widening Environmental Assessment/Initial Study 1 K140 Pere Blvd EA IS1.doc 71'27/2005 4-5 /c Chapter Cumulative Impacts requirements and implementation of a SWPPP which ensures BMPs are incorporated into the project design and implemented during construction and operation. Community compliance with these storm water pollution prevention measures should avert cumulatively negative water quality effects. With proper implementation of the BMPs, the proposed project would not contribute a substantial amount of polluted runoff during construction or operation. Thus, cumulative water quality impacts would be avoided. 4.2.7 Biological Resources The proposed project area is highly disturbed due to intense urban development and is rl�...�.• r 4,..,.� n r ..-11- •--+-,.�.,.� ..,q,.„a,. a r ..-,q C,,..• .nn _ c n /ter _.. Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.). Therefore, the project would not have any substantial adverse cumulative effects on wetlands or waters of the U.S. There is the potential for the proposed project to be constructed simultaneously with the projects addressed above. Most of these projects are within the urban developed area of the City of National City but may contain federally protected wetlands. Each project within the City's jurisdiction would be required to mitigate any impacts to wetland and waters of the U.S. based on their individual project. There is an absence of suitable habitat for sensitive species that precludes the potential for their occurrence. Thus, the project would not have a substantial adverse cumulative effect on habitat of any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service. 4.2.8 Cultural Resources A historic resources and architectural survey was conducted on September 18, 2002. Three buildings were identified within the Area of Potential Effect that were built prior to 1957 but are not recommended as eligible for the National Register of Historic Places or the California Register of Historical Resources. The remaining 50 parcels had 1 structure (a pool), 31 buildings, and 25 complexes and were identified as being constructed after 1957. The treatment of these buildings follows the "Caltrans Interim Policy for the Treatment of Buildings constructed in 1957 or Later," and they were not considered significant resources by this study. Therefore, the project would not have any adverse cumulative effects on historical resources. 4-6 Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plan Blvd EA_ IS f. doc 7/27/2005 )0 Chapter 4 Cumulative Impacts .i... No buildings or historic sites on the City's list of Historic Sites are to be demolished or altered by the proposed project or by any of the other cumulative projects listed in Section 4.1. Other projects in the City are subject to the same requirement for cultural resource investigation and mitigation as part of the City's standard development review and construction procedures. Thus, potential cumulative cultural resource impacts would be avoided. 4.2.9 Utilities/ Emergency Services Potential adverse effects would be limited to impacts from temporary construction activity that would be mitigated by proper hazardous materials storage, fueling, maintenance, and containment. Thus, project would not contribute adversely to cumulative public health and safety impacts. To ensure no impacts to public services would occur, a traffic management plan will be implemented by the project contractor that includes provisions requiring that emergency service vehicle access remains open at all times during construction. Thus, project would not contribute adversely to cumulative public service impacts. The proposed project and the other cumulative projects identified in Section 4.1 would coordinate all utility changes with the appropriate utility providers to ensure continuation of utility services to area residents during construction and operation of the projects. 4.2.10 Visual Resources Roadway improvements along Plaza Boulevard would result in the elimnation of portions of landscaped roadway, access driveways, and parking areas. In addition, retaining and sound walls would be constructed. To minimize potential adverse visual impacts, urban design and landscape treatment is proposed for the length of the project area. Also, other related projects in the area such as Philipine Village, Kalesa Walk, and Wal-Mart would provide additional landscaping. The project would not contribute to cumulative adverse visual resource impacts. 4.2.11 Traffic Circulation and Parking The project would not cause an increase in traffic, but would accommodate existing and projected future traffic levels in year 2030. Upon completion, the project would not exceed the LOS standard established by a Congestion Management Plan for Plaza Boulevard Widening Environmental Assessment/Initial Study 1 K 140 P1525 Blvd EA_I S 1. doc 7/27/2005 4-7 Chapter 4 Cumulative Impacts designated roads or highways. The project would improve LOS on this segment of Plaza Boulevard and therefore would have no adverse cumulative traffic impacts. The proposed project would remove parking from six businesses. Parking impacts would be mitigated and would not result in cumulatively adverse effects. 4.2.12 Geology and Soils The project lies in a seismically active area. The proposed improvements would be implemented in conformance with the Uniform Building Code, current seismic design specifications of the Structural Engineering Association of California, the Department's "Standard Contract Specifications" and "Special Provisions." the local grading Ui uaiwalJc, uai(1 JiLG-Jpc;J111J �pJLCJLIL11Ji11 L'GGUiIIIiaGiiliiaLIU11J. 1.U1111111u11w with these regulations would mitigate any potential unstable earth surface conditions. Other projects in the City are subject to the same requirements for geotechnical evaluation and mitigation as part of the City's standard development review and construction procedures. Thus, potential cumulative geologic impacts would be avoided. 4-8 Plaza Boulevard Widening Environmental AssessmenVInifial Study 1K140 Plaza BNd EA_IS1.doa 7/2712006 11 tv Chapter 5 List of Preparers Chapter 5 List of Preparers The following California Department of Transportation staff reviewed and commented during the preparation of this EA: David L. Nagy, Associate Environmental Planner — Environmental Assessment Martin D. Rosen, Heritage Preservation Coordinator — Cultural Resources Jayne Dowda, P.E., Branch Chief— Noise and Air Quality Jeff Bentz, Landscape Associate — Visual Analysis Steve Threl celd, Hazardous Waste Coordinator — Hazardous Waste The following City of National City staff reviewed and commented during the preparation of this Initial Study: . Din Daneshfar, Project Engineer Steven Ray, Principal Planner The following consultants prepared this EA: EDAW, Inc. Ray Hrenko, Principal, Senior Project Manager, B.S. Environmental Science, 22 years' experience Gary R. Fink, Senior Associate, Senior Project Manager, B.A. Anthropology, 30 years' experience Valarie Yruretagoyena, Environmental Analyst, B.A. Geography, 4 years' experience James Kurtz, Senior Associate, Acoustical Engineer, B.S. Engineering, 40 years' experience John Chavez, Environmental Engineer, B.S. Mechanical Engineering, 30 years' experience Plaza Boulevard Widening Environmental Assessment/Initial Study 1K140 Plaza 9Nd E4_ISI.doc 7/27/2005 5-1 Chapter 5 List of Preparers Christy Dolan, Associate, Historian, M.A. Anthropology, 13 years' experience Carrie Gregory, Archaeologist, B.A. Anthropology, 4 years' experience Kevin Derby, Biologist, B.A. Environmental Conservation, 9 years' experience David Nagel, Environmental Specialist, M.S. Geology, 25 years' experience Therese Tempereau, Technical Editor, B.A. English, 25 years' experience Karen Brandt, Environmental Specialist, B.A. Geography, 26 years' experience tutiP Mcr ,1( C,>ninr � Cn�:aho CP"ior P.niar;t M'Tl A (7-r•,,,....4.. 1.7 year experience Dan Brady, Graphic Artist, B.A. Fine Arts/Graphics, 11 years' experience Chris Collins, GIS/CAD Specialist, A.S. Technical Illustration, 26 years' experience Marisa Fabrigas, Word Processor, A.A. Secretarial Science, 22 years' experience Robin Rice, Word Processor, 10 years' experience Medlin & Associates Kathy Medlin, Principal Tim Medlin, Principal Dokken Engineering Kirk Bradbury, Project Manager Sonia Sturgeon, Associate Environmental Specialist 5-2 Plaza Boulevard Widening Environmental Assessment/Initial Study I 140 Pluze Blvd EA IS1 do, 7/2//2005 Chapter 6 References Chapter 6 References California Department of Transportation (Caltrans) 1998 Traffic Noise Analysis Protocol for New Highway and Reconstruction Projects, including Technical Noise Supplement. October 1998. 2002 Caltrans traffic data website: «ww.dot.ca.gov/hq/traffops/saferesr/ trafdata/2001 all/r505980i.htm». Downloaded November 2002. City of National City 1988 City of National City Environmental Guidelines. Local Guidelines for the Implementation of the California Environmental Quality Act (CEQA). May. 1991 Resolution of the City Council of the City of National City Calling a Public Hearing to Determine Whether Public Health, Safety, or Welfare Require the Formation of an Underground Utility District on Plaza Boulevard from Interstate 805 to Just Westerly of Palm Avenue. (District 16). Resolution 91-221. November 12. 1992 City of National City Council Policy. Standards for Public Rights -of - Way and Public Improvements Installed Thereon In Addition to the Adopted Edition of the San Diego Area Regional Standard Drawings and the Regional Supplemental Amendments. Ordinance No. 92- 2033. June 16. 1996a National City, California General Plan. September 1996. 1996b National City Combined General Plan/Zoning Map. 2002 An Urgency Ordinance of the City Council of the City of National City Adopting the Standard Urban Stormwater Mitigation Plan. Ordinance No. 2002-2213. November 19. 2003 National City Engineering Department, Traffic Collision Reports for 2000, 2001, and 2002. 2005 NationalCity Police I),:partrn ntirtift.Collisions<nPlaza 11t, 1eva d NationalCity 21)03-2004._..June 20 Dokken Engineering 2002 Dokken Engineering, meeting with Steve Threlkeld, P.E., Department Environmental Engineer, November 22, 2002. 2002a Hazardous Waste Initial Site Assessment for Plaza Boulevard Widening. December 2002. Plaza Boulevard Widening Environmental Assessment/Initial Study IK 140 Plaza Blvd EA_IS 1. tloc 7/27/2005 6-1 Chapter 6 References 2003 Plaza Boulevard Widening Location Hydraulic Study. January 2003. EDAW, Inc. 2002a Air Quality Analysis for the Plaza Boulevard Widening Project. October 2002. 2002b Biological Letter Report for the Plaza Boulevard Widening Project, City of National City, California. September 30, 2002. 2003a Noise Impact Analysis for the Plaza Boulevard Widening Project. January 2003. 2003b Draft Historic Properties Survey Report, Plaza Boulevard Road Widening Project, National City, San Diego County, California. 2003c Draft Historic Resources Evaluation Report, Plaza Boulevard Road Widening Project, National City, San Diego County, California. January 2003. Linscott, Law & Greenspan (LL&G) 2005 Traffic Impact Analysis, Plaza Boulevard Road Widening. March 2005. San Diego Air Pollution Control District (SDAPCD) 2002 Ozone Redesignation Request and Maintenance Plan for San Diego County. San Diego Association of Governments (SANDAG) 1995 National City Transportation Study. December. 2000a 2020 Regional Transportation Plan. January 2000. 2000b 2020 San Diego Regional Transportation Plan (RTP) Air Quality Conformity Finding. April 13, 2000. 2002 2002 Regional Transportation Improvement Program. July 2002. San Diego Daily Transcript (SDDT) 2001 "County Clears Major Air -Quality Hurdle" Article quoting San Diego Air Pollution Control District and U.S. Environmental Protection Agency staff relative to San Diego County ozone attainment. November 16, 2001. 6-2 Plaza Boulevard Widening Environmental Assessment/Initial Study 1 K t 40 Pion Blvd EA_IS 1. tloc 7/27/2005 Chapter 8 References 1 1 1 1 N 3 Segal, Alexander 1996 Acoustical Analysis Report, Noise Contours for National City Transportation Facilities. June 1996. U.S. Census Bureau American Fact Finder Web Site <http://factfinder.census.gov/servlet/ BasicFactsServlet>. Accessed December 2002. U.S. Department of Agriculture, Soil Conservation Service (SCS) 1973 Soil Survey, San Diego Area, California. United States Department of Agriculture, Soil Conservation Service and Forest Service. December 1973. U.S. Department of Transportation 2003 Federal Highway Administration and Federal Transit Administration joint letter of acceptance for the SANDAG Air Quality Conformity Determination. April9. tf 1 n. rcmrrm.nt_a,l PrcAectimt el,gency_,..t lSEP \t 2003 Regulatory Announcement. Final !Zulu to cic raanvortatinn Conformity Rule:. May. 2 s Pren,iKf.Q.N1Qt.he University of California, Davis, Institute of Transportation Studies (UCD ITS) 1997 Transportation Project -Level Carbon Monoxide Protocol (UCD-ITS- RR-97-21). December. Plaza Boulevard Widening Environmental Assessment/Initial Study f1<140 Plaza Blvd EA_ISl.doc 7/27/2006 6-3 Chapter 6 References This page intentionally left blank. 6-4 Plaza Boulevard Widening Environmental Assessment/Initial Study lk140 Plaza Bl✓d EA 151_doc 7/27/2005 / 3/ 1 Appendix A CEQA Checklist 1 1 1 a 1 11 3 /� 1 1 11 3 CEQA Checklist The following checklist identifies physical, biological, social, and economic factors that might be affected by the proposed project. The CEQA impact levels include potentially significant impact, less than significant impact with mitigation, less than significant impact, and no impact. Please refer to the following for detailed discussions regarding impacts: CEQA: • Guidance: Title 14, Chapter 3, California Code of Regulations, Sections 15000 et seq. <http://www.ceres.ca.gov/topic/env_law/ceqa/guidelines/> • Statutes: Division 13, California Public Resource Code, Sections 21000-21178.1 <http://www.ceres.ca.gov/topic/env_1aw/cega/stat/> CEQA requires that environmental documents determine significant or potentially significant impacts. In many cases, background studies performed in connection with the project indicate no impacts. A "no impact" reflects this determination. Any needed discussion is included in the section following the checklist. Page A-1 /y Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact AESTHETICS - Would the project: a) Have a substantial adverse effect on a scenic vista?CI El El El There are no scenic resources or scenic vistas within the project area that could be affected. Thus, the project would not have a substantial adverse effect on a scenic vista. b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic building within a state scenic highway? or signitcant trees will be damaged. c) Substantially degrade the existing visual character or quality of the site and its surroundings? ❑ ❑ n El CI El El The proposed project is a widening of an existing roadway in an urban area. Roadway improvements along Plaza Boulevard would result in the elimination of landscaping along the roadway, accessways, and parking areas. The loss of this omamental landscaping will be offset with the incorporation of landscape improvements as identified in a landscape plan proposed for the length of the proposed improved Plaza Boulevard. In addition, landscaped medians would be provided at various locations, further enhancing the aesthetics of the Plaza Boulevard corridor. Sound and retaining walls would be architecturally treated. The proposed landscape plan would be prepared in accordance with the City's adopted Design Guidelines and Landscape Guidelines. It will also be coordinated with the Community Development Commission for consistency with the proposed Philippine Village enhancement. d) Create a new source of substantial light or glare, which would adversely affect day or nighttime viewsLJ in the area? The proposed widening improvements would not significantly change the existing lighting conditions along Plaza Boulevard and at the I-805 underpass. Thus, the project would not result in new light, glare, or shadows. AGRICULTURE RESOURCES - In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-agricultural use? The surrounding area is already developed and does not support any agricultural uses. Therefore, the project would not convert or impair productivity of agricultural lands. 1'age A-2 X X / 3 Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? The proposed project area is already developed and is not zoned for agricultural use, and there is no land under a Williamson Act contract. c) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use? See response a. AIR QUALITY - Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: a) Conflict with or obstruct implementation of the applicable air quality plan? ❑ ❑ ❑R ❑ The proposed project is included in the 2030 Regional Transportation Plan (RTP) and the 2002 Regional Transportation Improvement Plan (RTIP) that are in conformance with the Clean Air Act. The project site is Located in the San Diego Air Basin (SDAB), which is classified as a federal and state nonattainment area for ozone and a state nonattainment area for particulate matter sized 10 microns or less in diameter (PM10). SDAB is a federal attainment/maintenance area for carbon monoxide. Traffic volumes would not be increased by the project, and signalized intersections would operate at acceptable levels. These factors would result in no increase in local carbon monoxide levels and no federal and state standards being exceeded. Thus, the project would not violate or be inconsistent with federal, state, or local air quality standards or control plans. b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? See response a. c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non -attainment under an applicable federal or state ❑ ❑ ambient air quality standard (including releasing emissions which exceed quantitative thresholds for ozone precursors)? The proposed project would not generate any long-term air pollutant emissions. Short-term PMto generation due to construction activity would be controlled with pollution abatement measures, e.g., use of watering trucks and covered dirt haul trucks to suppress dust. Therefore, the project would not result in any long-tenn increase in air pollutant emissions or any effect on regional or local ambient air quality with implementation of mitigation measures. d) Expose sensitive receptors to substantial pollutant concentration? Page A-3 /36 Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact Sensitive receptors could be exposed to a temporary increase in pollutants during the construction period. These impacts would be mitigated through measures identified in the Air Quality Report. e) Create objectionable odors affecting a substantial number of people? E The project would not generate permanent odors. The road -paving operation may emit temporary odors from the paving process but offensiveness is subjective. Impacts would not be significant. BIOLOGICAL RESOURCES - Would the project: u identified as a candidate, sensitive, or special status ❑ CI Li] species in local or regional plans, policies, or regulations, or by the Califomia Department of Fish and Game or U.S. yish and Wildlife Service? The project area is highly disturbed due to previous urban development. There is an absence of suitable habitat for sensitive species that precludes the potential for their occurrence. Thus, the project would not have a substantial adverse effect on habitat of any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service. The U.S. Fish and Wildlife Service stated "no impacts to federally listed endangered or threatened species, or designated or proposed critical habitat will occur as a result of the proposed actions" (Appendix B). b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations, or by El n �X the Califomia Department of Fish and Game or U.S. Fish and Wildlife Service? The project area is highly disturbed due to intense urban development. The area is devoid of any riparian habitat or other sensitive natural community identified in local or regional plans, policies, and regulations or by the California Department of Fish and Game or U.S. Fish and Wildlife Service. c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the ❑ Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? . The proposed project area is highly disturbed due to intense urban development and is devoid of any federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal pool, coastal, etc.). Therefore, the project would not have any substantial adverse effects on wetlands. Page A-4 X /37 Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or ❑ ❑ ❑ El established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? Due to the highly disturbed urban area of the proposed project, there is no opportunity for the movement of any native resident or migratory fish or wildlife species. Additionally, there are not any established native resident or migratory wildlife corridors, or any native wildlife nursery sites. e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? The proposad project is in a highly disturbed area due to intense urban development and would not conflict with any local policies or ordinances protecting biological resources. ❑ ❑ ❑ 11 t) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation ❑ ❑ ❑ 0 Plan, or other approved local, regional, or state habitat conservation plan? The proposed project is in a highly disturbed area due to intense urban development and would not conflict with the provisions of an adopted Habitat Conservation Plan; Natural Community Conservation Plan; or other approved local, regional, or state habitat conservation plan. COMMUNITY RESOURCES - Would the project: a) Cause disruption of orderly planned development? ❑ ❑ ❑ n The National City General Plan (1996a) states the commercial areas along Plaza Boulevard are to offer, "convenient neighborhood -oriented shopping," as well as community -wide goods and services in shopping centers between Highland Avenue and L Avenue. The project would provide a more efficient egress/ingress to this commercial area. Therefore, implementation of the proposed project would not cause disruption of any future planned development. b) Be inconsistent with a Coastal Zone Management Plan? ❑ ❑ X The proposed project is not within the Coastal Zone and would not be inconsistent with the Coastal Zone Management Plan. c) Affect life-styles, or neighborhood character or stability? The project is the widening of an existing roadway and underpass through a largely commercial area. Thus, the project would not affect any life styles, neighborhood character or stability. Page A-5 X d) Physically divide an established community? Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact The project improvements are within an existing transportatioCI CI El CI n corridor, and no structural barriers would be constructed that would physically divide the community. There would be some construction activities that could temporarily affect businesses along Plaza Boulevard. Roadway construction would be done in a progressive, orderly manner, so the entire 1.8-km (1.1-mile) stretch of road would not be under construction at the same time. Thus, the proposed project would not divide or disrupt the entire community. e) Affect minority, low-income, elderly, disabled, transit -dependent, or other specific interest group? adversely affected by this project over the long term because construction of the project would result in improved traffic flow. f) Affect employment, industry, or commerce, or require the displacement of businesses or farms? u ❑ a ❑ The proposed project would not result in the displacement of any businesses or farms. There would be a reduction of parking from six businesses that could temporarily affect customer visitation during construction. g) Affect property values or the local tax base? ❑ ❑ LJ The road improvements would create better traffic flow and make the commercial sites along Plaza Boulevard more convenient to access. More convenient access could potentially make the commercial sites more appealing to customers. The increased desirability of the commercial sites could increase property values and could positively affect the local tax base. h) Affect any community facilities (including medical, educational, scientific, or religious institutions, ceremonial sites or sacred shrines)? There are no community facilities within the project site that would be affected by the proposed project. As stated in response f above, Altematives I and 2 would displace two medical businesses (City Dental Center and Eye Care Associates). i) Result in alterations to waterborne, rail, or air traffic? ❑ u X n ❑ X There are no waterways, railroad tracks, or airports near the project site. Therefore, waterbome, rail, or air traffic in the project area would not be affected by project implementation. j) Support large commercial or residential development? n ❑ X The proposed project is within an already developed area and would widen an already existing roadway. The proposed widening is identified in the National City Standards for Public Rights -of -Way and Public Improvements (City of National City 1992) and is consistent with the City General Plan. Therefore, the project would not support any new large commercial or residential development. k) Affect wild or scenic rivers or natural landmarks? Page A-6 P X • / 3 1 1 g 3 Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact No wild or scenic rivers or natural landmarks would be affected by the proposed project because no wild or scenic or natural landmarks are located within the proposed project area. I) Result in substantial impacts associated with construction activities (e.g., noise, dust, temporary drainage, traffic detours, and temporary access, etc.)? El Ell El CI Noise and dust would be generated during construction, and access to businesses may be temporarily disrupted. The impacts would not be substantial. These impacts would be mitigated by implementation of construction -level noise and air quality measures to alleviate impacts that have been discussed in the Environmental Assessment and in the Noise and Air Quality Reports. CULTURAL RESOURCES - Would the project: a) Cause a substantial adverse change in the significance of a historical resource as defined in §15064.5? See response b below. b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to §15064.5? A historic resources and architectural survey was conducted on September 18, 2002. Three buildings were identified within the Area of Potential Effect that were built prior to 1957 but are not recommended as eligible for the National Register of Historic Places or the California Register of Historical Resources. The remaining 50 parcels had 1 structure (a pool), 31 buildings, and 25 complexes and were identified as being constructed after 1957. The treatment of these buildings follows the "Caltrans Interim Policy for the Treatment of Buildings constructed in 1957 or Later," and they were not considered significant resources by this study. Therefore, there would be no impacts to historical resources from the proposed project. The State Historic Preservation Officer must concur with this finding. El CI El El LI El El The proposed project is currently in an urban developed area. No archaeological surveys were conducted for the proposed project because no previously undisturbed ground would be disturbed by the proposed project. An archaeological survey of two alternative staging areas was conducted with negative results. c) Directly or indirectly destroy a unique ! 1 I I paleontological resource or site or unique geologic feature? Portions of the proposed project are within the Bay Point Formation, which is assigned a high resource sensitivity for paleontology. However, because the proposed project is within an already disturbed urban area, direct or indirect impacts to paleontological resources are unlikely. d) Disturb any human remains, including those interred outside of formal cemeteries? No cemeteries have been identified in the proposed project area. There would be no effect on any human remains. X GEOLOGY AND SOILS - Would the project: a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving; Page A-7 X /7 i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact El El E El The project lies in a seismically active area, and future earthquakes can be expected. Earthquakes likely to produce the greatest ground movement accelerations in the vicinity of the project would be associated with the Rose Canyon, Coronado Banks, San Diego Trough, Elsinore, San Clemente, or San Jacinto faults, all located offsite of the project area. i1. Jilla L/C in i:u,liu/11181.cC w:al .uc 1.;..ic4u uullu:i:d i,cuc, current seismic design specifications of the Structural Engineering Association of California, the Department's "Standard Contract Specifications" and "Special Provisions," the local grading ordinance, and site -specific geotechnical recommendations. Compliance with these regulations would mitigate any potential unstable earth surface conditions. Therefore, improving a roadway and widening an underpass in conformance with these safety measures would not increase the exposure of people or property to geologic or seismic hazards. ii) Strong seismic ground shaking? See response i. iii) Seismic -related ground failure, including liquefaction? See response i. iv) Landslides? ❑ u ❑ ❑ u X X n ❑ o Elevation in the project area ranges between approximately I 1 meters (36 feet) and 32 meters (106 feet) above mean sea level. The terrain is generally relatively flat, rising in elevation from west to east along the corridor. No landslides have been identified. Therefore, impacts associated with landslides would not occur. b) Result in substantial soil erosion or the loss of topsoil? The proposed project is currently in an urban developed area and would consist of widening an already existing roadway. Use of best management practices (BMPs) during the construction process would alleviate the potential for soil erosion during grading. c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off -site landslide, lateral spreading, subsidence, liquefaction or collapse? See responses i and iv. Page A-8 n X 1 1 1 11 1 11 3 L d:.tl 11 Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or property. See response i. No expansive soils have been identified. e) Have soils incapable of adequately supporting the use of septic tanks or alternative wastewater disposal ❑ ❑ ❑ CI systems where sewers are not available for the disposal of wastewater? The proposed project consists of widening an already existing roadway. Existing sewer systems are already within the project area and there would be no need for septic systems or alternative wastewater disposal systems. Therefore, no impacts would occur. HAZARDS AND HAZARDOUS MATERIALS - Would the project: ❑ n ❑ o a) Create a significant hazard to the public or the environment through the routine transport, use, or ❑ ❑ ❑❑ disposal of hazardous materials? No hazards would be created through the routine transport, use, or disposal of hazardous materials because existing commercial uses employ industry standard materials and methods to address hazardous waste issues. b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and ❑ n ❑ ^ �j accident conditions involving the release of hazardous materials into the environment? The project would not create a significant hazard to the public or the environment through potential upset and accident conditions involving the release of hazardous materials into the environment by implementing industry -accepted methods of addressing hazardous wastes in the region. c) Emit hazardous emissions or handle hazardous or acutely hazardous material, substances, or waste within one -quarter mile of an existing or proposed school? It is not anticipated that the project would emit hazardous emissions or handle hazardous materials, substances, or waste within 0.4 km (0.25 mile) of a school. d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, n I " t would it create a significant hazard to the public or the environment? The project alternatives are not included on a list of hazardous materials but could affect one site where hazardous materials have been identified. Mitigation has been identified in the Phase I Site Assessment (Appendix L) that would be implemented during construction that includes installation of a monitoring well to replace an existing well at Thrifty #105. ❑ u Page A-9 lea Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact e) For a project located within an airport land use plan or, where such a plan has not been adopted, within ❑ ❑ ❑ two miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? The project site is not located in an airport land use plan or is within 3.2 km (2 miles) of a public airport or any type of airfield, and no impacts would occur. f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or working in the project area? g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? D El 0 0 ❑ 0 0 The project would not have any effect on an adopted emergency response plan or emergency evacuation plan. Emergency evacuation could be delayed during project construction; however, construction is expected to be completed within 10 to 12 months. h) Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized 0 I x I areas or where residences are intermixed with wildlands? The project would not expose people or structures to risk of loss, injury, or death from wildland fires because the project is located in a developed, urban setting. HYDROLOGY AND WATER QUALITY - Would the project: a) Violate any water quality standards or waste discharge requirements? u o 0 Erosion control and hazardous spill contingency plans would be required for the project. These plans would ensure that the project will not be inconsistent with or violate any federal, state, or local water quality standards or waste discharge standards. b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? Water would be used from the imported water supply during construction. However, the amount is relatively small and would not be used in a wasteful manner or affect the amount of water available in the area. Page A-10 X / 73 a,1 Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact c) Substantially alter the existing drainage pattem of the site or area, including through the alteration of the ❑ ❑ E course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off -site? No streams or rivers flow in or near the project area. Therefore, the proposed project would not alter any existing drainage patterns of the site or nearby area. The use of BMPs would be implemented during construction to ensure no erosion or siltation would occur onsite or offsite. d) Substantially alter the existing drainage pattem of the site or area, including through the alteration of the ❑ El El El of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off -site? A drainage channel is the only surface drainage structure in the project area. The channel has concrete sides and bottom. There are no natural drainage features that could be affected on the project site. Thus, the project would not alter any drainage patterns or substantially increase the amount of runoff in a manner that would result in flooding onsite or offsite. e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater ❑ El n ❑ drainage systems or provide substantial additional sources of polluted runoff? Storm water would be controlled and directed into the storm drain system. There would not be any adverse effect on groundwater because the surface runoff would be directed into storm drains. The project would not affect any public water supplies or distribution networks. Thus, there would not be any appreciable change in the quantity or quality of surface waters (storm runoff). Erosion during construction could occur from construction of a retaining wall adjacent to a drainage channel. However, BMPs will be used to minimize storm water -related impacts during the construction process. f) Otherwise substantially degrade water quality? See response a. g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? No housing would be placed in a 100-year floodplain as a result of this project. h) Place within a 100-year flood hazard area structures which would impede or redirect flood flows? n n ❑ u n n ❑ n ❑ o The project would not place structures in the 100-year flood hazard area that would impede or redirect flood flows. i) Expose people or structures to a significant risk of loss, injury or death involving flooding, including flooding as a result of the failure of a levee or dam? The project would not expose people or structures to a significant risk of loss, injury, or death involving flooding because no levees or dams exist upstream of the project site. Page A-11 X /YY j) Inundation by seiche, tsunami, or mudflow? Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact ❑ u ❑ X \The project would not be subject to inundation by seiche, tsunami, or mudflow given its location away from the coastline. LAND USE AND PLANNING - Would the project: a) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ❑ ❑ ❑ CI mitigating an environmental effect? The National City General Plan Circulation Element (1996a) states the commercial areas along Plaza Boulevard are to offer, "convenient neighborhood -oriented shopping," as well as community -wide goods and services in shopping centers between Highland Avenue and L Avenue. The National City Standards for Public Rights -of -Way and Public Improvements (City of National City 1992) recommends that Plaza Boulevard be widened to a six -lane Prime Arterial. The proposed improvements would provide a more efficient egress/ingress to this commercial area. Therefore, implementation of the proposed project would not conflict with any applicable land use plans, policies, or regulations. b) Conflict with any applicable habitat conservation plan or natural community conservation plan? ❑ n ❑ The proposed project is not within any habitat or natural community conservation area and would therefore not conflict with any applicable conservation plans. MINERAL RESOURCES - Would the project: a) Result in the loss of availability of a known mineral resource that would be of value to the region and the ❑ residents of the state? The project would require the use of some aggregate rock, sand, cement, asphalt, and steel. However, the proposed project would not create an ongoing or future demand for natural resources. Therefore, there would not be a change in the rate of use of natural resources. b) Result in the loss of availability of a locally important mineral resource recovery site delineated on ❑ a local general plan, specific plan or other land use I x plan? See response a. No locally important mineral resources have been identified. NOISE - Would the project: a) Result in exposure of persons to or generation of noise levels in excess of standards established in the Local general plan or noise ordinance, or applicable standards of other agencies? Page A-12 ■ 41 i_i r 1 1 1 1 j 1 3 1 Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact There would be no substantial noise increase between the existing and built configurations of the proposed project (substantial being defined as 12 decibels or greater). However, ten receptors identified in a noise report prepared by EDAW, Inc. (Appendix H) could experience predicted levels that approach or exceed the applicable noise abatement criteria. b) Result in exposure of persons to or generation of excessive groundbome vibration or groundbome noise ❑ El ❑ ❑ levels? Noise levels could increase during the construction period, but implementation of noise abatement measures recommended in the Noise Report (Appendix H) would alleviate potential construction -related noise impacts. c) A substantial permanent increase in arrbie t noise levels in the project vicinity above levels existing U without the project? Two single-family residences and one outdoor use could experience permanent increases in the ambient noise level with implementation of the project. These impacts would be mitigated through adoption of the noise abatement measures addressed in the Noise Report (Appendix H) and per Federal Highway Administration and California Department of Transportation guidelines. The noise abatement measures will be evaluated to determine if they are reasonable and feasible. d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? See response b. e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? The project is not located within an airport land use plan area. f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? The proposed project is not within the vicinity of any private airstrips and would not expose people working or residing in the project area to excessive noise levels. POPULATION AND HOUSING - Would the project: a) Induce substantial population growth in an area, either directly (for example, by proposing new homes n ❑ and businesses) or indirectly (for example, through extension of roads or other infrastructure)? The project would not induce population growth either directly or indirectly given that the site and surrounding area are a densely developed urban area. Page A-13 ❑ o n ❑ n n ❑ u ❑ X n ❑ ❑ o El El El To ensure no impacts to fire protection services occur, a traffic management plan will be implemented by the project contractor that includes provisions requiring that fire protection services access remains open at all times during construction. Police protection? Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact b) Displace substantial numbers of existing housing, El El 1-1 El the construction of replacement housing elsewhere? No residential housing would be removed or people displaced. Thus, the project would not result in impacts to existing housing. c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? No people would be displaced by this project. a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Fire protection? ❑ ❑ No impacts to schools would occur because no schools are within the project area. The two nearby schools would not be adversely affected by the project, either by loss of land, noise, or changes to ingress/egress. Parks? No impacts to parks would occur because no parks are within the project area. Other public facilities? n To ensure no impacts to fire protection services occur, a traffic management plan will be implemented by the project contractor that includes provisions requiring that police protection services access remains open at all times during construction. Schools? n No other public facilities occur within the project area; therefore, no impacts would occur RECREATION - a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? Page A-14 n X n X X 1 iJ /77 1 1 0 P) Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact The improvements are within an area surrounded by commercial development. There are no existing neighborhood and regional parks or other recreational facilities located within the project limits. Thus, the project would not result in any substantial physical deterioration of any of these facilities. b) Does the project include recreational facilities or require the construction or expansion of recreational Elfacilities which might have an adverse physical effect CI El El on the environment? The improvements are within an area surrounded by commercial development. There are no existing recreation facilities located within the project limits. Thus, the project would not result in any adverse effects on the environment due to the construction or expansion of any recreational facilities. TRANSPORTATION/TRAFFIC - Would the project: a) Cause an increase in traffic which is substantial in relation to the existing traffic load and capacity of the street system (i.e., result in a substantial increase in either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections? See response b below. 0 0 ❑ 0 b) Exceed, either individually or cumulatively, a level of service standard established by the county rJ ❑ ❑ E congestion management agency for designated roads � or highways? The project would not cause an increase in traffic, but would accommodate existing and projected future traffic levels in year 2030. Upon completion, the project would not exceed the level of service (LOS) standard established by a Congestion Management Plan for designated roads or highways. The project would improve LOS on this segment of Plaza Boulevard. c) Result in a change in air traffic pattems, including either an increase in traffic levels or a change in 0 location that results in substantial safety risks? The proposed project is a widening of an already existing roadway and would not alter any air traffic patterns or result in any substantial safety risks. d) Substantially increase hazards due to a design � feature (e.g., sharp curves or -dangerous intersections) n 0 t "' 1 or incomplete uses (e.g., farm equipment)? The proposed project is a widening of an already existing linear roadway. No new design features include any sharp curves or dangerous interceptions. e) Result in inadequate emergency access? u u X A traffic management plan will be implemented by the project contractor that includes a provision requiring that emergency access remains open at all times during construction to ensure that no impacts to emergency access occur. f) Result in inadequate parking capacity? Page A-15 X / 5g Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact The proposed project would result in the loss of 60 parking spaces, of which 32 spaces are on -street parking. This Toss of parking would affect six businesses. The following measures are recommended to offset the parking loss: Eye Care Associates • Change the parking regulation and provide angled parking on the south side of 12th Avenue fronting the property. • Close one of the three driveways and reconfigure the inefficient parking lot. California Produce/Apartment Complex • Implement a shared parking agreement with Jimmy's Family Restaurant for California Produce employee parking. g) Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus tumouts, bicycle racks)? CI CI 0 0 The proposed improvements to Plaza Boulevard and the I-805 underpass represent the ultimate capacity improvements anticipated by the current SANDAL Regional Transportation Plan. The National City General Plan also identified the need for these improvements in the Circulation Element. Thus, the proposed project would not conflict with any adopted policies, plans, or programs supporting altemative transportation (e.g., bus tumouts, bicycle racks). UTILITY AND SERVICE SYSTEMS - Would the project; a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? X The proposed project would not produce excess wastewater that would exceed the wastewater treatment requirements of the Regional Water Quality Control Board. b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant environmental effects? The proposed project would not require the need for the construction of new wastewater treatment facilities or expansions of existing facilities. c) Require or result in the construction of new storm water drainage facilities or expansion of existing ❑ ❑ ❑ facilities, the construction of which could cause significant environmental effects? National City has existing storm drainage systems located within Plaza Boulevard, between Highland Avenue and Euclid Avenue. Multiple storm drain inlets would need to be removed as a result of the proposed widening project, New storm drain systems would be designed to provide for adequate drainage of Plaza Boulevard. n d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? Page A-16 X X ■ l Less than Potentially significant Less than Significant impact with significant No Impact mitigation impact impact The proposed project is within an existing roadway that has a sufficient water supply to serve the project. No new or expanded entitlements are needed. e) Result in determination by the wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? No wastewater demand would be generated by the proposed project. f) Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste disposal ne?ds? See response g below. g) Comply with federal, state, and local statutes and regulations related to solid waste? ❑ ❑ 0 n ❑ ❑ o 0 El El 0 The proposed project would be served by the Otay landfill, which has sufficient permitted capacity to serve the project's solid waste disposal needs. The proposed project would comply with federal, state, and local statutes and regulations related to solid waste. MANDATORY FINDINGS OF SIGNIFICANCE - a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, or cause a fish or wildlife population to drop below self-sustaining Li Li❑ levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? The project would not degrade the quality of the environment, substantially reduce the habitat or a fish or wildlife species, or cause a fish or wildlife population to drop below self-sustaining levels; threaten to eliminate a plant or animal community; reduce the number or restrict the range of a rare or endangered plant or animal; or eliminate important examples of the major periods of California history or prehistory because no native habitat exists and no examples of the major periods of Califomia history or prehistory have been identified along the project route. b) Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the (�, I incremental effects of a project are considerable when u u viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? No cumulative impacts have been identified. Numerous other proposed projects have been identified within National City (Section 4.0). The impacts of these projects would not be cumulatively considerable. Page A-17 / 5 D Less than Potentially significant Less than Significant impact with significant No 'Impact mitigation impact impact c) Does the project have environmental effects that will cause substantial adverse effects on human beings, either directly or indirectly? The project would not have environmental effects that would cause a substantial adverse impact on human beings. Construction -level noise impacts, and impacts to air quality, parking, and hazardous materials would be mitigated as identified above. 0 0 signing the CEQA Checklist on behalf of the National City Planning Department. Ray Hrenko, EDAW Inca Page A-18 Date 1 ri r j11 Discussion of CEQA Checklist Responses Responses to the CEQA Checklist have been provided after each question and are located in the checklist. Mitigation Measures for Impacts under CEQA The following mitigation measures will be implemented to reduce parking impacts: 3.3-1 Parking impacts for all three alternatives would be mitigated by the following: Eye Care Associates • Provide angled parking on the south side of 12th Avenue fronting the property. • The parking lot shall be re -configured to increase parking supply. This may include closing one of the three driveways to the site. California Produce • A shared parking agreement with Jimmy's Family Restaurant shall be investigated. • Remove the existing gate/wall dividing the California Produce and apartment complex parking lots and reconfigure the parking. 3.4-1 The following measures shall be implemented to reduce air quality impacts: • Minimize land disturbance. • Use watering trucks to minimize dust; watering should be sufficient to confine dust plumes to the project work areas. • Suspend grading and earth moving when wind gusts exceed 25 miles per hour unless the soil is wet enough to prevent dust plumes. • Cover trucks when hauling dirt. • Stabilize the surface of dirt piles if not removed immediately. • Limit vehicular paths on unpaved surfaces and stabilize any temporary roads. Page A-19 /5 • Minimize unnecessary vehicular and machinery activities. • Sweep paved streets at least once per day where there is evidence of dirt that has been carried onto the roadway. • Revegetate disturbed land, including vehicular paths created during construction to avoid future off -road vehicular activities. • Remove unused material. 3.4-2 The following measure shall be incorporated into the project to minimize exposure to diesel particulate emissions: • Locate construction equipment and truck staging and maintenance areas as far as feasible from and nominally downwind of schools, active recreation areas, and other areas of high population density. Future noise impacts shall be mitigated by the following: 3.5-1 Noise abatement at impacted receptors, which include a motel swimming pool and two single-family residences, can be accomplished by construction of sound barriers where reasonable and feasible to achieve a minimum 5-dBA reduction. 3.5-2 The following measures shall be implemented to minimize construction noise impacts: • Limit construction to between 7 a.m. and 7 p.m. weekdays and Saturdays wherever feasible to minimize night noise generation. • Notify residents and business owners in advance of planned work near their properties. • Require contractors and subcontractors with haul trucks to have and maintain mufflers of original equipment grade or better on all engines. • Require the use of solar- or battery -powered traffic control devices (such as lighted signs) when located within 150 meters (500 feet) of residences. Do not use internal combustion engines for such devices. • Apply the noise ordinance limits to hours of construction in staging areas. Page A-20 L� 1 1 1 1 3.5-3 For anticipated nighttime construction, the contractor shall take extra steps to minimize the noise impact on nearby residences. These measures shall include the following elements: • Prepare and implement a construction noise monitoring plan. Where excess noise levels are observed or likely to occur, temporary abatement measures shall be taken to reduce noise to acceptable levels. • Select machinery with noise control in mind. Noise levels often vary widely between manufacturers and models for similar types of equipment. Some machines are specifically designed for low noise emissions. Inspect all equipment to ensure good working order. • Carefully consider placement of equipment. Merely orienting a truck such that its exhaust points away from a receptor can result in as much as 10 dB of noise reduction. The contractor shall take full advantage of the nearby freeway overpass for shielding such equipment as generators and compressors. Shield other equipment behind natural or man-made barriers as much as possible. Otherwise, place equipment as far as possible from sensitive receptors. • Give consideration to temporary noise barriers. Commercial scaffold - mounted curtains are available that are specifically designed for construction noise mitigation. Stacked bales of hay have also been successfully used as inexpensive barriers. • The contractor shall plan and execute work to minimize noise impacts, reserving quieter operations for those hours when disturbance is most likely. The following measures shall be implemented to minimize stormwater and hydrology -related impacts: 3.6-1 A SWPPP shall be prepared to address erosion control and sedimentation issues related to the grading aspect of the project. The SWPPP shall specify and describe the implementation process of all BMPs that will address equipment operation and materials management, prevention of erosion, and prevention of sedimentation in onsite and downstream drainage swales. The Page A-21 /6r City Engineer of the City of National City shall ensure that the SWPPP is properly implemented. 3.6-2 The concrete -lined drainage on the eastern end of the project shall be protected from indirect impacts by utilizing BMP to filter runoff and prevent the introduction of sediment and other pollutants. Examples of treatments include the use of straw wattles and gravel -filled burlap bags. An experienced environmental monitor shall inspect the placement and installation of the BMPs to ensure they are implemented properly, and to periodically inspect the BMPs during the construction process. 3.11-1 At the time of construction, install a monitoring well to replace the well that must be abandoned within the area of widening at the Thrifty #105 gas station within the area of widening. On -going monitoring of the well shall be the responsibility of the property owner. The following measures shall be implemented to reduce visual impacts: 3.12-1 Implementation of the under grounding of utilities as identified in Resolution 91-221 (City of National City 1991) for the Plaza Boulevard Underground Utility District and extending that to encompass the entire proposed action corridor. 3.12-2 Implementation of a landscape plan for the proposed Plaza Boulevard widening corridor with emphasis on roadway medians, driveway entrances, retaining and noise walls, and parking areas. The landscape plan would be consistent with the street tree -planting program of the Community Development Commission. 3.12-3 Landscaping would include water -conserving plant species and low - maintenance designs (City of National City 1996a). 3.12-4 Incorporation of architecturally compatible sound attenuation barriers including anti -graffiti surfaces. Page A-22 The following measures shall be implemented to reduce emergency service impacts: 3.13-1 A traffic management plan will be implemented by the project contractor that includes provisions requiring that emergency services access remain open at all times during construction. Monitoring Program for CEQA Mitigation A Mitigation Monitoring and Reporting program per the requirements of CEQA is provided as Appendix D of this document. Page A-23 a This page intentionally left blank. Page A-24 1 %$7 Appendix B Coordination and Consultation 1 1 1 1 a 3 11 1 1 1 1 1 n 11 LI Coordination and Consultation The EA/IS/MND was prepared in coordination with several agencies. The agencies are identified below and are separated into federal agencies and stage agencies. FEDERAL AGENCIES United States Fish and Wildlife Service Susan Wynn, Acting Assistant Field Supervisor STATE AGENCIES California Department of Parks and Recreation, Office of historic Preservation Dr. Knox Mellon, State Historic Preservation Officer California Department of Transportation Jeff Morales, Director Page B-1 ��a This page intentionally left blank. 11 Page B-2 1 Appendix C Title VI Policy Statement 1 1 1 11 3 L ri L ri 11 1 1 1 1 a 3 DEPARTMENT OF TRANSPORTATION OFFICE OF THE DIRECTOR 1120 N STREET P. O. BOX 94217) SACRAMENIO. CA 942734001 PHONE (916) 044267 FAX (916)04660S July 26, 2000 TITLE VI POLICY STATEMENT The California State Department of Transportation under Title VI of the Civil Rights Act of 1964 and related statutes, ensures that no person in the State of California shall, on the grounds of race, color, sex and national origin be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity it administers. /1144.4 JEFF MORALES Director 1 1 This page intentionally left blank. 11 a b Appendix D Mitigation Monitoring Program 2.0 APPROVALS AND PERMITS REQUIRED The City of National City is the Lead Agency for this project, and would have the primary authority for approval of this environmental document and the proposed project. The approvals and permits that would be required are listed below. 2.1 Approvals City of National City The project will be reviewed and approved by the City of National City under the CEQA process A Mifitio2 - Np^:hive rjo gtln l (MDi W411 hP nranom i on4 rP A�V�A 1 ., �t / i AIknlauC ..;J !, 2,drai J, Weic all e) alnined in an equal ievel or detail in the 1Jtii16; one of these alternatives will be the selected as the project. California Department of Transportation The Department will review the project under the NEPA process and will submit the project to the Federal Highway Administration (FHWA) for review and appropriateness of a determination of a Finding of No Significance Impacts (FONSI). Federal Highway Administration FHWA will review the project under NEPA and will approve a FONSI for the proposed action. 2.2 Permits National Pollution Discharge Elimination System (NPDES) Permit The Regional Water Quality Control Board (RWQCB) will use the EA/IS/MND and supporting documentation in its decision to issue water quality permits, such as an NPDES General Construction Activity Storm Water Permit, Clean Water Act 401 Water Quality Certification. The NPDES permit requires implementation of erosion and sediment control measures and implementation of Best Management Practices (BMPs) during site preparation. Page D-2 { Plaza Boulevard Widening Mitigation Monitoring Program Checklist Mitigation Measure No. Mitigation Measure Method of Verification Timing of Verification .Responsible Part Initials Completed Date .I Commts p.. construction During Cons- truction Post- construction t t � � "�f��t 3.3-1 ,�$. Parking impacts for all three City Engineer Parking im i% led alternatives would be mitigated by the following: X X X by construe lion would be ref laced. Eye Care Associates • Change the regulation and provide angled parking on the south side of 12th Avenue fronting the property. • The parking lot shall be re- configured to increase parking supply. This may include closing one of the three driveways to the site. California Produce • A shared parking agreement with Jimmy's Family Restaurant shall be implemented. • Remove the existing gate/wall dividing the California Produce and apartment complex parking lots and reconfigure the parkinyg^+' <.. Mt S F e% eepp rvi Yr. i�,...Yn'�Z>ii d 5 §, 2 vF�i"�A!��':.��'4 P k Xf^£y+ Y a.Y' ' k �f. 3" �k3i4 PTy1*�` '4 5..h�v OW 3 4-1 The following measures would Place as notes X X X National City, Develop air quality mitigate air quality -related on the project Construction measures prior to impacts: Mini,ni,e land disturbance during construction. plans . Contractor construction and implement during construction. Monitor during Page D-3 i,. -Nation ':-:asure . No. _Mitigation Measure Method of Verification Timing of Verification Completed Date , on J Pre- construction During Cons- traction Post- construction Responsible Party Initials Use watering trucks to minimize dust; watering should be sufficient to confine dust plumes to the project work areas. Suspend grading and earth moving when wind gusts exceed 25 miles per hour unless the soil is wet enough to prevent dust plumes. Cover ducks when hauling dirt. Stabilize the surface of dirt piles if not removed inunediately. Limit vehicular paths on unpaved surfaces and stabilize any temporary roads. Minimize unnecessary Commie; . construction. vehicular and machinery activities. Sweep paved streets at least once per day where there is evidence of dirt that has been carried onto the roadway. Revegetate disturbed land, including vehicular paths created during construction, to avoid future of road vehicular activities. 3 4-2 The following measure would miuimi-re exposure to diesel particulate emissions: Place as notes on the project plans X X X National City, Construction Contractor Inform constr contractor pri,:. grading and Page D-4 Mitigation Measure No. Mitigation Measure Method of Verification Timing of rification Responsible Party Initials Completed Date Comm,nts Pre- construction Raring Cons-. truction Post- construction Locate construction equipment and truck staging and maintenance areas as far as feasible and nominally downwind of schools, active recreation areas, and other areas of high population density. monitor din; ,g construction. .' if1 T9e2d aW 'Al; aE NryiiPi T✓ 1✓? eVa 3.5-1 Future noise impacts shall be mitigated by the following: Noise abatement at impacted receptors, which include a motel swimming pool and two single-family residences, can be accomplished by construction of sound barriers where reasonable, to achieve a minimum 5-dBA reduction. Construction of improvements. X X National City, the Department, and Construction Contractor To be deteri nued by the Depanment. 3-5-2 The following measures shall be implemented to minimize construction noise impacts: Limit construction to between 7 a.m. and 7 p.m. weekdays and Saturdays wherever feasible to minimize night noise generation. Notify residents and business owners in advance of planned work near their properties. Require contractors and subcontractors with baud trucks to have and maintain mufflers of original equipment grade or better on all engines. Place as notes on the project plans. _ X X National City, Construction Contractor Inform cons,ruction contractor prier to grading and monitor during construction. Notify residents prior to construction. Page D-5 ation ,sure as Mitigation Measure Method of Verification Timingof Verification Completed Date Comment. pre_ construction During Cons- truction Post- construction Responsible Party Initials Require the use of solar- or battery -powered traffic control devices (such as lighted signs) when located within 150 meters (500 feet) of residences. Do not use internal combustion engines for such devices. Apply the noise ordinance limits to hours of construction 35-3 For anticipated nighttime construction, the contractor shall take extra steps to minimize the noise impact oncontra nearby residences. These measures shall include the following elements: Prepare and implement a construction noise monitoring plan. Where excess noise levels are observed or likely to occur, temporary abatement measures shall be taken to reduce noise to acceptable levels. Select machinery with noise control in mind. Noise levels Mien vary widely between manufacturers and models for similar types of equipment. Some machines are specifically designed for low noise emissions. Inspect all equipment to ensure good working order. Carefully consider placement of equipment. Merely orienting Place as notes on project plans X X National City, Construction Contractor Preplan i ,,, p to cooare nstruction. Inform COI1Sltl1: it grading or :.; and mSITU during coDnstruction. Page D-6 IIE-1 EMI NMI Mitigation Measure No. Mitigation Measure Timing of Verification Responsible Party Initials Completed Date Comments Method of Verification Pre- construction During Cons- traction Post- construction a truck such that its exhaust points away from a receptor can result m as much as 10 dB of noise reduction. The contractor shall take full advantage of the nearby freeway overpass for shielding such equipment as generators and compressors. Shield other equipment behind natural or man-made barriers as much as possible. Otherwise, place equipment as far as possible from sensitive receptors. Consider temporary noise ' barriers. Commercial scaffold - mounted curtains are available that are specifically designed for construction noise mitigation. Stacked bales of hay have also been successfully used as inexpensive barriers. The contractor shall plan and execute work to minimize noise impacts by performing noisier activities during daylight hours and reserving quieter operations for those hours when disturbance by noise would be more noticeable �, br B6 �rh h.,.'SJN�ivixe�Y4.�j��br. wok" d ,� ksV 5�r. ,A4* 3' WWgkgk„„��� � vei k5 d N '� q t' S;R1Abv �Tl I}yv iL .e✓ 3.6-1 The following measures shall be implemented to minimize stormwater and hydrology- related impacts: Completed plan X X City Engineer of National City, Construction Contractor Prepare plan prior to construction. Implement during construction. Page D-7 !�aafion 1'easure No Mitigation Measure Method of Verification Timing of Verification Completed Date Commen Pre- construction During Cons- traction Post- construction Responsible Party Initials A SWPPP shall be prepared to address erosion control and sedimentation issues related to the grading aspect of the project. The SWPPP shall specify and describe the implementation process of all BMPs that will address equipment operation and materials management, prevention of erosion, and prevention of sedimentation in onsite and downstream drainage swales. The City Engineer of the City of National City shall ensure that the SWPPP is properly implemented_ 3.6-2 The concrete -lined drainage on the eastern end of the project shall be protected from indirect impacts by utilizing BMP to filter runoff and prevent the introduction of sediment and other pollutants. Examples of treatments include the use of straw wattles and gravel -filled burlap bags. An experienced environmental monitor shall inspect the placement and installation of the BMPs to ensure they are implemented properly, and to periodically inspect the BMPs during the construction process. Completed plan X X National City, Construction Contractor Develop BMP, before const u. ..,n and implemen. Burin g construction. Page D-8 r Mitigation Measure No. Mitigation Measure Method of Verification Timing of Verification Responsible Pa Initials Completed Date Comments pre- construction During Cons- truction Post- construction ,a -'.�. �.ggae,�'r c f.s . .... w4,.>1.4uM1Gx t' .,• ;; ;. w. 1.11-1 The following measure shall be implemented to reduce hazardous waste impacts: At the time of construction, install a monitoring well to replace the well that must be abandoned within the area of widening at the Thrifty #105 gas station within the area of widening. On -going monitoring of the well shall be the responsibility of the property owner. . Inspection by the City X National City, Construction Contractor Must be completed prior to construction. �Na ������++��i! ilItt*t.9• �n'R Sin �aa e`'_�'µ�- Inspection by the City ;..r. 4�..a ,tip �k, Yti '� ry X i^rt�z 1"d' Ki':m �y rol tifli e7.l National City, Construction Contractor i F. Must be completed prior to completion of the proposed project 3.12-1 The following measures shall be implemented to reduce visual impacts: Implementation of the under grounding of utilities as identified in Resolution 91-221 (City of National City 1991) for the Plaza Boulevard Underground Utility District and extending that to encompass the entire proposed 3.12-2 Implementation of a landscape plan for the proposed Plaza Boulevard widening corridor with emphasis on roadway medians, driveway entrances, retaining and noise walls, and parking areas. The landscape plan would be consistent with the street tree -planting program of the Community Development Commission. Inspection by the City X National City, Construction Contractor Must be completed prior to completion of the proposed project Page D-9 ��liroration :Measure No. Mitigation Measure Method of Verification Timing of Verification Completed Date Commer, Pre- construction During Cons- traction Post- construction Responsible Party Initials 3.12-3 Landscaping would include water -conserving plant species and low -maintenance designs Inspection by the City X National City, Construction Contractor Must be comp prior to comp. of the propose 3.12-4 ,a° 3. 1 3-1 Incorporation of architecturally compatible sound attenuation barriers including anti -graffiti surfaces '✓1e3e :,¢ The following measures shall be implemented to reduce impacts to emergency services. A traffic management plan will be implemented by the project contractor that includes provisions requiring that emergency services access remain open at all times during construction. Inspection by the City a ,, ...V Inspection by the City t=i X �i� X b T. National City, Construction Contractor _ d'�=4° National City, Construction Contractor Y'Y ]A�i'x!%:"^95?S%�. project Must be corm: prior to comp of the proposc Must be comp, o fthepcomp!. of the proposr project Page D-10 Appendix E Parking Study 3 3 1 1 1 0 11 u 11 u Appendix F Air Quality 1.1 7 Appendix G Traffic Impact Analysis /7 Appendix H Noise 1' 1 11 11 0 Appendix 1 Biology / �% Appendix J Hydraulic Study f�� Appendix K Historic Property Survey Report/Historic Resources Evaluation Report/Negative Archaeological Survey Report 11 0 3 1 Appendix L Initial Site Assessment (Hazardous Materials) 1 1 g 3 1 21 J1 1 e Appendix M Visual Impact Assessment 1 1 1 1 0 0 u MEETING DATE City of National City, California COUNCIL AGENDA STATEMENT August 16, 2005 24 AGENDA ITEM NO. / ITEM TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADDING POLICY NUMBER 711 TO THE CITY COUNCIL POLICY MANUAL, ESTABLISHING A POLICY FOR THE ISSUANCE OF TAXICAB PERMITS AND MEDALLIONS PREPARED BY George H. Eiser, III�s�EPARTMENT City Attorney (Ext. 4221) EXPLANATION Please see attached memorandum. Environmental Review Financial Statement N/A X N/A Account No. STAFF RECOMMENDATION Adopt resolution. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) Memorandum Proposed Policy No. 711 Resolution 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: August 8, 2005 FROM: City Attorney SUBJECT: PROCEDURES FOR ISSUANCE OF .ADDITIONAL TAXICAB PERMITS AND MEDALLIONS At the July 19 City Council meeting, the Council directed staff to develop procedures for the issuance of taxicab permits and medallions beyond the existing three permits and 65 medallions. The proposed resolution would approve a policy in the City Council Policy Manual to set forth the basic requirements for submittal of proposals to qualify for taxicab or other paratransit vehicles to operate in the City. The following are the main features of the policy: 1. The Mayor and City Council will establish an Issuance Evaluation Committee comprised of two Councilmembers and a specified number of staff members, to review proposals from those desiring a permit, and to make determinations as to granting or denying the request for a permit. 2. The Committee will also make recommendations to the City Council concerning the establishment of numerical limits on permits, and on medallions for taxicabs. 3. The City Manager would exercise discretion in issuing permits and medallions, up to the maximum number authorized by the City Council. 4. Eligibility criteria are set forth. 5. Required information for submittal of a proposal is stated. GEORGE K. EISER, III City Attorney GHE/gmo ® Recycled Paper CITY COUNCIL POLICY TITLE: REQUIREMENTS FOR SUBMITTAL OF PROPOSALS TO POLICY QUALIFY FOR TAXICAB OR OTHER PARATRANSIT NUMBER: 711 VEHICLE PERMITS ADOPTED: August 16, 2005 AMENDED OR REVISED: Page 1 of 4 Purpose The purpose of this policy statement is to set forth the basic requirements for submittal of proposals to qualify for taxicab or other paratransit vehicle permits to operate in the City of National City. Policy I. BASIC REQUIREMENTS A. The Mayor and City Council will establish an Issuance Evaluation Committee, comprised of two councilmembers and a specified number of staff members, to review such submittals and make a determination as to granting or denying the request for permit(s) and medallions (in the case of taxicabs). Decisions as to the granting or denial of submittals may take up to 90 days. Submittals of all such proposals shall be to the Finance Department. B. The Issuance Evaluation Committee will also make recommendations to the City Council from time to time concerning the establishment of numerical limits on the number of permits and/or taxicab medallions to be authorized C. This procedure and its requirements are set forth in accordance with, and are consistent with, the City of National City Municipal Code, Section 11.70 et seq., pertaining to the regulation and operating requirements of paratransit vehicles operating in the City of National City, and the Implementation Regulations for Paratransit Vehicles related thereto. D. A minimum qualification for the submittal to the City of such a proposal requires that the submittal applicant is currently, and will continue in the future, to be able to comply with the above referenced ordinance and Implementation Regulations. Actual submittal of a proposal will constitute affirmation that compliance with said regulations will be effectuated by the permit applicant. Upon the City's grant of a permit to a new permit holder, completion of an application in accordance with the above regulations will thereafter be required with payment of the required fees, as set forth in Section 11.70 of the Municipal Code. TITLE: REQUIREMENTS FOR SUBMITTAL OF PROPOSALS TO POLICY QUALIFY FOR TAXICAB OR OTHER PARATRANSIT NUMBER: 711 VEHICLE PERMITS ADOPTED: August 16, 2005 AMENDED OR REVISED: Page 2 of 4 E. Applicants will not be discriminated against on the basis of race, creed, national origin, gender, religion, sexual orientation, age, and other such constitutionally protected classifications. Preference may be given to applicants who operate their paratransit vehicle headquarters in the City of National City. The City of National City reserves the right to reject any and all submittals at its discretion where the applicant's proposal does not meet the qualifying criteria. F. By submitting a proposal, the applicant authorizes the City of National City to perform all investigations necessary to determine suitability and number availability for the issuance of additional permits and/or medallions by the City. The availability of permits and/or medallions to be issued by the City will be based on City Council approval of a maximum number of permits and/or medallions authorized, based on its discretion. The City Council may, in its discretion, reduce the number of authorized permits and/or medallions when deemed to be in the best interest of the City. The City Manager is not required to issue the maximum amount of permits and/or medallions set by City Council, unless in his or her discretion, it is warranted, based on need and qualifications of the proposals. II. ELIGIBILITY A. Paratransit operators who are immediately able to operate a legal paratransit vehicle in the City of National City are eligible to apply. They must provide: 1. A centralized fleet ownership of paratransit vehicles through a partnership, corporation, drivers' association, or a limited liability corporation. 2. A 24-hour staffed central dispatch system, demonstrating an operational management system for paratransit vehicles. 3. Usage of a GPS by at least 50% of the fleet. 4. Credit card acceptance from passengers for payment of fares. 5. Minimum driver age requirement of 21 years of age. 6. A 20 hour minimum of driver training requirement by the company. TITLE: REQUIREMENTS FOR SUBMITTAL OF PROPOSALS TO POLICY QUALIFY FOR TAXICAB OR OTHER PARATRANSIT NUMBER: 711 VEHICLE PERMITS ADOPTED: August 16, 2005 AMENDED OR REVISED: Page 3 of 4 7. Proof of minimal insurance requirements as set forth in the City's Implementation Regulations and Section 11.70 of the Municipal Code. 8. Agreement to comply with the City's Equal Employment Opportunity Plan and incorporation of the Plan into their operation. B. Submittal of all required information is the responsibility of the applicant. Factual accuracy, completion of all required documentation, and timely submittal is required of the submittal applicant for eligibility. III. REQUIRED INFORMATION FOR SUBMITTAL A. General Applicant Information 1. Name, address, and telephone number of the applicant, and person submitting the proposal, if different. 2. Designation, details as to the form of the business, and supporting documentation as to the legal existence of the business entity, including all identification information for the business such as corporate number, Articles of Incorporation, bylaws, and related documents. B. Five references of clients or business entities who can attest to the applicant's quality of service provided for paratransit vehicle service. C. A Management Business Plan, to include descriptions of the following, all of which may be utilized to evaluate the decision to grant or deny the proposal request: 1. The provision of a centralized fleet ownership by the entity. 2. The Central Dispatch System, GPS, and communication technology employed by the applicant. 3. Experience, training, and qualifications of applicant and their managers, drivers, and owners. TITLE: REQUIREMENTS FOR SUBMITTAL OF PROPOSALS TO POLICY QUALIFY FOR TAXICAB OR OTHER PARATRANSIT NUMBER: 711 VEHICLE PERMITS ADOPTED: August 16, 2005 AMENDED OR REVISED: Page 4 of 4 4. Summary or report of response times for past three years (or a set standard for response times for new companies). 5. Proof of credit card usage for customer fares. 6. Customer Complaint Procedure. 7. Vehicle storage, repair and maintenance monitoring systems for the vehicles for effective functioning. 8. Drivers' hiring and retention criteria, training program, and minimum required experience. 9. Chart and description of existing personnel positions. 10. Submittal of a plan for ongoing monitoring and evaluation of the applicant's level and quality of service and accountability. 11. Record keeping system. 12. List of all other cities or other entities for which permits are currently held or intended in the year subsequent for paratransit vehicle service. 13. The dates, names, and explanation of all past license or permit revocations of any and all drivers, owners or managers of the applicant's entity. 14. Facilities and headquarters location and description. 15. Safety program details. D. Submittal of a letter from an accredited financial institution stating that the applicant has the resources to fund the Management Business Plan within 90 days of the award of the permit(s). RESOLUTION 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING AND ADDING POLICY NUMBER 711 TO THE CITY COUNCIL POLICY MANUAL, ESTABLISHING A POLICY FOR THE ISSUANCE OF TAXICAB PERMITS AND MEDALLIONS WHEREAS, the City has recently completed a successful transition of the taxicab administration function from the MTDB to the City; and WHEREAS, the City Council has currently authorized three taxicab permits and 65 medallions, and desires to establish procedures for the issuance of additional permits and medallions. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves and adds Policy No. 711 to the City Council Policy Manual, establishing a policy for the issuance of taxicab or other paratransit vehicle permits. PASSED and ADOPTED this 16th day of August, 2005. Nick Inzunza, Mayor ATTEST: Michael Daila, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney City of National City, California COUNCIL AGENDA STATEMENT August 16, 2005 MEETING DATE 25 AGENDA ITEM NO. (-ITEM TITLE Public Hearing — Modification of a Conditional Use Permit for Cornerstone Church at 1920 Sweetwater Road to Expand Church Services and Add a School and Adult Day Care (Applicant: Pastor Sergio De La Mora) (Case File No.: M1-CUP-2003-20) fi PREPARED BY Andrew Hos15nson 336-431DEPARTMENT Planning EXT. EXPLANATION The proposed modification would expand church services of Cornerstone Church, which is located in Sweetwater Town and Country shopping center. The expanded use would include a greater number of services and a greater variety of uses (e.g. school and adult day care). As this is a modification of an existing Conditional Use Permit, only the granting body, City Council, must consider the item at a public hearing. The attached background report describes the proposed modification in detail. J CEnvironmental Review ( Financial Statement N/A N/A Categorical ExemptiormiS Approval Approved By: Finance Director Account No. STAFF RECOMMENDATION Rce Staff recommends approval of the modification of Conditional Use Permit 2003-20. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS r Listed Below ) 1. Eackground Keport Resolution No. 6. Notice of Exemption 2. City Council Resolution 2003-184 7. Department Comments 3. Recommended Findings for Approval 8. Site Photographs 4. Recommended Conditions of Approval 9. Application . Applit,am s Plans A-200 (Rev. ) Lucatiuti Map A) BACKGROUND REPORT Site Characteristics and History: The project site is located at 1920 Sweetwater Road in the 24 acre Sweetwater Town and Country shopping center, which is zoned General Commercial -Planned Development (CG-PD). The 28,000 square foot Cornerstone Church building, formerly a multi -screen theater, is located at the rear of the center adjacent to the east of Bally's Total Fitness. It is most easily accessed by the driveway from Sweetwater Road adjacent to Starbucks. The building is separated from Bally's by a large parking area. Nearby uses, all within the shopping center, include various restaurants to the north and Bally's Total Fitness to the west. Interstate 805/State Route 54 interchange is located both east and south of the site. Conditional Use Permit 2003-20 for Cornerstone Church was considered by the City and approved in December 2003. The approval was for a church with a congregation of 600 people with services offered at the times noted in the table below. Church Activities Day Activity Applicant's Estimated Attendance Hours Sunday Church services 600 people 7:00 a.m. to 12:00 p.m. and 5:00 p.m. to 10:00 p.m. Monday English as a Second Language Men's Study Group To be determined (TBD) 40 people 6:00 p.m. to 7:00 p.m. 7:30 p.m. to 9:00 p.m. Tuesday Fatherhood Class 25 people. 4:00 p.m. to 6:00 p.m. Wednesday Church services 250 people 5:00 p.m. 10:00 p.m. Thursday Worship Team Practice (Choir) 15 people 6:00 p.m. to 8:00 p.m. Friday Youth church service 100 people 6:00 p.m. 10:00 p.m. Saturday Various Ministry Training meetings Youth Leadership Institute Worship Team Practice (Choir) TBD TBD 15 people 7:00 a.m. to 12:00 p.m. 1:00 p.m. to 3:00 p.m. 6:00 p.m. 8:00 p.m. In addition to the primary services noted above, the applicant was approved to operate a small bookstore/cafe, childcare, film/movie room, concession stand and performing arts sanctuary. As of the preparation of this report, the main church services are being offered, the day care is being conducted out of four temporary trailers (awaiting completion of interior improvements), and operation of the bookstore/cafe has not yet begun. Representatives of the church have indicated that their congregation is growing considerably faster than expected and that they need to modify their approval to allow them greater flexibility to more fully utilize their building. Proposed Modifications: The applicant is requesting that times of church services be changed to the days and times below: Day(s) Hours Monday - Friday' 5:00 p.m. to 10:00p.m. Saturday 8:00 a.m. to 10:00 p.m. Sunday 7:00 a.m. to 10:00 p.m. 'Services will not likely be offered each work day of every week, but will change from week to week The applicant has also requested that the restriction limiting the congregation size to 600 people be removed to allow for continued growth and more complete use of the building. According to the applicant, as of now they will likely continue to offer services during the times and days originally approved for and add services on Saturday and possibly one other weeknight. In addition to expanding the hours church services can be offered, the applicant would like to operate a private accredited Christian school, 1 s' through 6'1' grade, and adult day care out of the facility. Specifically, the school would start with just a first grade class, and expand by one additional grade each year for a maximum enrollment of approximately 300 students. Attached plans show the areas of the building that will be improved for use as classrooms. School hours would be from 7:00 a.m. to 3:00 p.m. Monday through Friday. The plans also show the indoor and outdoor areas intended for the adult day care operation. The applicant is in the process of acquiring a State license for the adult day care. Once they have the license, the hours of operation will be from 8:00 a.m. to 5:00 p.m. Monday through Friday. The applicant is also requesting an exemption to allow larger signs (wall sign, pole sign and changeable copy sign) than churches are allowed under the Land Use Code. Analysis: Removing the 600 person congregation size limit will allow the applicant to more fully utilize a large, approximately 28,000 square foot, building that was originally designed as a multi -screen movie theater intended for large crowds. For example, the main sanctuary (three combined theaters) will ultimately hold just over 800 people. Not only was the building designed for the gathering of large crowds, but as a community level shopping center Sweetwater Town and Country shopping center was planned for heavy use and moderate to high levels of traffic. The expanded hours are consistent with the hours of businesses in the center and the multiple uses (day care, school and adult day care) will allow the applicant to more fully utilize their building. A condition of approval requiring a site -specific traffic circulation plan to safely coordinate drop-off/pick-up of school Idren and seniors has been included. As the applicant is in the process of making interior building improvements to handle the intended uses, an attached condition requires suitably improved classrooms and senior rooms prior to commencement of these uses. With regard to the sign issue, Land Use Code restrictions for church signs are aimed at smaller churches that are typically located on the fringe of residential neighborhoods. As Cornerstone Church is located in a large building in a large shopping center, it is reasonable to allow signs that are both in proportion to the building and site, and that are consistent with the size of signs allowed for commercial businesses within the shopping center. Both the Police and Fire Departments' recommendations for the project (see attached Department Comments) have been included as conditions of approval. The recommendations are intended to make use of the property as safe as possible, by requiring an adequate fire suppression system, proper exterior illumination and safe traffic circulation. RESOLUTION NO. 2003 — 184 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A CONDITIbNAL USE PERMIT FOR A CHURCH AT 1920 SWEETWATER ROAD IN THE SWEETWATER THEATERS BUILDING IN THE SWEETWATER TOWN AND COUNTRY SHOPPING CENTER. APPLICANT: CORNERSTONE CHURCH CASE FILE NO. CUP-2003-20 WHEREAS, the City Council of the City of National City considered a Conditional Use Permit application for a church at 1920 Sweetwater Road in the Sweetwater Theaters building in Sweetwater Town and country Shopping Center at the regularly scheduled City Council meeting of December 2, 2003 at which time oral and documentary evidence was presented; and, WHEREAS, at said public hearing the City Council considered the staff report prepared for Case File No. CUP-2003-20 which is maintained by the City, and incorporated herein by reference; and, WHEREAS, this action is taken pursuant to all applicable procedures required by State and City law; and, WHEREAS, this action recited herein is found to be essential for the preservation of public health, safety and general welfare. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City, California, that the testimony and evidence presented to the City Council at the public hearing held on December 2, 2003 support the following findings: 1. That the site for the proposed use is adequate in size and shape, since the existing 28,000 square foot building in a 24 acre shopping center is appropriately designed for a family Christian center, and since adequate parking is available in the center for the existing commercial uses and the proposed church. 2. That the site has sufficient access to streets and highways that are adequate in width and pavement type to carry the volume and type of traffic generated by the proposed use, since there should be a decrease in the number of average daily trips attributable to the existing building, since church uses typically generate considerably less traffic than movie theaters. 3. That the proposed use will not have an adverse effect upon adjacent or abutting properties, since both traffic and parking demand within the center should be reduced when the proposed church use replaces the movie theater, and since the existing theater building is appropriately designed for church activities. 4. That the proposed use is deemed essential and desirable to the public convenience and welfare, since it will provide opportunities for its members and their guests to attend church services and receive training in life skills. BE IT FURTHER RESOLVED that the application is approved subject to the following conditions: Resolution No. 2003 — 184 December 16, 2003 Page Two 1. This Conditional Use Permit authorizes a 600 member church at 1920 Sweetwater Road. Except as required by conditions of approval, all plans submitted for permits associated with the project shall conform with Exhibits B and C, Case File no. CUP-2003-20, dated 11/24/2003. 2. Plans must comply with the 2001 editions of the California Building Code, the California Mechanical Code, the California Plumbing Code, the California Electrical Code, and California Title 24 energy and handicapped regulations. 3. Exterior walls of buildings/ freestanding signs/ trash enclosures to a height of not less than 6 feet shall be treated with a graffiti resistant coating subject to approval from the Building and Safety Director. Graffiti shall be removed within 24 hours of its observance. 4. Before this Conditional Use Permit shall become effective, the applicant and the property owner both shall sign and have notarized an Acceptance Form, provided by the Planning Department, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to retum the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Conditional Use Permit. The applicant shall also submit evidence to the satisfaction of the Planning Director that a Notice of Restriction on Real Property is recorded with the County Recorder. The applicant shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Conditional Use Permit are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to form by the City Attorney and signed by the Planning Director prior to recordation. 5. This permit shall become null and void if not exercised within one year after adoption of the resolution of approval unless extended according to procedures specified in Section 18.116.190 of the Municipal Code. 6. This permit shall expire if the use authorized by this resolution is discontinued for a period of 12 months or longer. This permit may also be revoked, pursuant to provisions of the Land Use Code, if discontinued for any lesser period of time. BE IT FURTHER RESOLVED that copies of this Resolution shall be transmitted forthwith to the applicant; and, BE IT FURTHER RESOLVED that this Resolution shall become effective and final on the day following the City Council meeting where the resolution is adopted. The time within which judicial review of this decision may be sought is governed by the provisions of Code of Civil Procedure Section 1094.6. -- Signature Page to Follow -- Resolution No. 2003 — 184 December 16, 2003 Page Three Passed and adopted this 16`h day of December, 2003. ATTEST: eZtida Michel Della, Ci Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney Passed and adopted by the Council of the City of National City, California, on December 16, 2003, by the following vote, to -wit: Ayes: Councilmembers Inzunza, Morrison, Natividad, Parra, Ungab. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: NICK INZUNZA Mayor of the City of National City, California MICHAEL R. DALLA City Clerk of the City of National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2003-184 of the City of National City, California, passed and adopted by the Council of said City on December 16, 2003. 1prk of the City of/National City, California By: Deputy RECOMMENDED FINDINGS FOR APPROVAL 1. That the deletion of a restriction limiting congregation size to 600 people is necessary to permit reasonable operation and use under the permit, since an increase in the types of services offered and in the days and hours that services can be provided will allow the property owner/occupant to fully utilize their building. 2. That requested exemptions from restrictions on maximum sign size for churches are reasonable, since the location is an atypical setting, within 28,000 square foot former theater building within community level shopping center in major commercial district, for a church. RECOMMENDED CONDITIONS OF APPROVAL 1. This Conditional Use Permit authorizes a church and secondary uses (cafe/bookstore, concessions, film/movie room, childcare, performing arts sanctuary, 1st through 6th grade school, and adult day care) at 1920 Sweetwater Road. Except as required by conditions of approval, all plans submitted for permits associated with the project shall conform with Exhibit A, Case File no. M1-CUP-2003-20, dated 6/29/2005. 2. Plans must comply with the 2001 editions of the California Building Code, the California Mechanical Code, the California Plumbing Code, the California Electrical Code, and California Title 24 energy and handicapped regulations. 3. Exterior walls of buildings/ freestanding signs/ trash enclosures to a height of not less than 6 feet shall be treated with a graffiti resistant coating subject to approval from the Building and Safety Director. Graffiti shall be removed within 24 hours of its observance. 4. Before this Conditional Use Permit shall become effective, the applicant and the property owner both shall sign and have notarized an Acceptance Form, provided by the Planning Department, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Conditional Use Permit. The applicant shall also submit evidence to the satisfaction of the Planning Director that a Notice of Restriction on Real Property is recorded with the County Recorder. The applicant shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Conditional Use Permit are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to form by the City Attorney and signed by the Planning Director prior to recordation. 5. This permit shall become null and void if not exercised within one year after adoption of the resolution of approval unless extended according to procedures specified in Section 18.116.190 of the Municipal Code. 6. This permit shall expire if the use authorized by this resolution is discontinued for a period of 12 months or longer. This permit may also be revoked, pursuant to provisions of the Land Use Code, if discontinued for any lesser period of time. 7. Prior to commencement of either the school and/or adult day the applicant shall submit three copies of a site -specific traffic circulation plan to the Planning Director for review and approval by the Planning and Police Departments. 8. Prior to the commencement of either the school and/or the adult day care interior building improvements, consistent with Exhibit A dated 6/29/2005, shall be completed for the intended use. 9. Prior to commencement of either the school and/or the adult day care the applicant shall submit an exterior illumination plan to the Police Depai invent to ensure proper exterior illumination. 10. Plans for any and all required modifications of the automatic fire sprinkler system shall be submitted to the Fire Department for review and approval. CITY OF NArro CITY OF CH Route 54 Freeway PROPOSED CHURCH LOCATION LOCATION MAP Expansion of church services for Cornerstone Church at 1920 Sweetwater Road M1-CUP-2003-20 NATIONAL CITY PLANNING DRN. DATE: 10/07/03 INITIAL HEARING: 8/16/2005 City of National City Planning Department 1243 National City Blvd., National City, CA 91950 (619) 336-4310 ROGER G. POST - DIRECTOR NOTICE OF EXEMPTION TO: County Clerk County of San Diego P.O. Box 1750 1600 Pacific Highway, Room 260 San Diego, CA 92112 Project Title: Ml-CUP-2003-20 Project Location: 1920 Sweetwater Road, in the Sweetwater Town & County Shopping Center Contact Person: Andrew Hoskinson Telephone Number: (619) 336-4313 Description of Nature. Purpose and Beneficiaries of Project: Modification of a Conditional Use Permit for a church. Applicant Name and Address: Cornerstone Church 347 ''A 3rd Avenue Chula Vista, CA 91910 Telephone Number: 619-425-9333 Exempt Status: n Statutory Exemption. (State type and Section No., if applicable) ® Categorical Exemption. Class 1, Section 15301 (Existing Facilities) ❑ Not a project as defined in Section 15378 of CEQA ❑ Not subject to CEQA (Sec. 15061b3) Reasons why project is exempt: The proposal would permit extended hours of operation of a church within an existing building within an existing shopping center. There will be no physical expansion of the existing structure as part of this project. Date: ANDREW HOSKINSON ASSOCIATE PLANNER ® Recycled Paper CITY OF NATIONAL CITY FIRE DEPARTMENT Phone: (619) 336-4550 7 JUN2005AM 8:21 I MEMORANDUM I DATE: June 7, 2005 TO: Andrew Hoskinson, Associate Planner FROM: Donald Condon, Battalion Chief / Fire Marshal SUBJECT: Case File No: M1-CUP-2003-20 Comments and Recommendations: 1) Addition of the balcony will require modifications to the automatic fire sprinkler system. Separate plans and permit will be required for any and all modifications to the fire sprinkler system. 2) Any modifications to the fire alarm system will require separate plans to be submitted to the Fire Department for review and permitting. Page 1 of 1 William Strasen 6 JUN 2005 PM12.°3 From: William Strasen Sent: Monday, May 30, 2005 2:03 PM To: Andrew Hoskinson Cc: Lanny Roark Subject: Modification of CUP M1-CUP-203-20 Upon review of the application for modification of a conditional use permit for the Cornerstone Church of San Diego, the Police Department has concerns regarding the potential volume of increased vehicular and pedestrian traffic into and out of the facility site. With the potential increase in congregation size from 600 to 3,500 persons come the almost inevitable increase in the risk of vehicle accidents and criminal activity in the public parking access areas. The Police Department recommends that the Building and Safety Department and Engineering Department carefully consider the impact of the increased traffic volume upon the egress / ingress point at the only metered traffic control point intersection of Town & Country Drive and Sweetwater Road. We further recommend that as a condition of approval of the modification to add Adult Care, Child Care, as well as, a pre-school through sixth grade elementary school to the existing site that appropriately marked and designated pick up and drop off locations be required for the facility site; in additions to providing adequate illumination that will address the public safety concerns of the facility site. In order to meet the needs of the city and the developer, the police department will make personnel available for on -site review and inspection during this project. Willia . Str-:en, Sergerant Interim Administrative Staff Sergeant (619) 336-4524 5/30/2005 M1-CUP-2003-20 - Site photos ONE:C;• C Front of Cornerstone Church -- 1920 Sweetwater Road Trailer utilized by Child Day Care Facility operated by Cornerstone Church 1•• NATIONAL CITY, CALIFORNIA APPLICATION for MODIFICATION OF A Conditional Use Permit Planned Development Permit Planned Unit Development Permit Make checks payable to the City of National City File application with the: National City Planning Department 1243 National City Boulevard National City, California 91950 (619) 336-4310 PLEASE DO NOT USE BLUE INK WHEN COMPLETING THIS FORM FOR �DEPARTMENTCUP— USE ONLY Case Number Mt — CUE — 2003- Filing Fee S 3go3 Rec 2, t No. Date Received 5\li'tg By E.A.F. Required ItL er Fee S A Related Cases COP -iW3 `TO LEGAL DESCRIPTION OF PROPERTY: (Attach if insufficient space) A9rNI 5G 3-- 2.31 -3R- 0d Co( r-rfs---rye Chthrch at- Snv, ergo , 25 000 59 F-1- , 2 s-}-nrj fcilf ) Icco.1-- c1A- 1 92d 5we<�wa,4-e✓ (ZcI PROPERTY LOCATION 1ga6 Sr,s - CttP✓ ZoU6l No. Street between `60S �fcewA� and iZ ✓\ci ie v vC. COMBINED GENERAL PLAN/ZONING DESIGNATION Conditional Use/Planned Development/Planned Unit Development Permit Modification Application Revised December, 1998 Page 1 of 4 REQUEST: The Applicant requests a modification of: Conditional Use Permit No. C O P - 2 00 Planned Development Permit No. , or Planned Unit Development Permit No. Please specify conditions to be deleted, added, or modified, or describe changes to the approved plans. Attach additional sheets if necessary. See c4c4 %cd PROPERTY OWNER(S) of all property included in this application: (Attached extra sheets if necessary). Name: Sergitl ne Ln 6-10rA, Name: Signature Signature (Signature acknowledges that this (Signature acknowledges that this application is being filed) application is being filed) Address: I q2 Q S a -Iv Address: acid. CA, cllgso Phone No. (C& I q) -4 25 -c 333 Fax No. (CI0)42.5- e) .-7 I Date: M0,1 I it a605 Phone No. Fax No. Date: Conditional Use/Planned Development/Planned Unit Development Permit Modification Application Revised December. 1998 Page 2 of 4 /0 APPLICANT Name: Ge / 9 j De La (Please type or print) Signature: (Signature ce ' ies that ormation submitted with this application is true and accurate to the best of the applicant's knowledge). Address: 1 q 20 Nict#10nO\ (;i1-i r $v '116150 Phone No. (G i9) 425-9333 Fax No. Iq) A25- 432-1 Date: S ( 1910 5 Conditional Use/Planned Development/Planned Unit Development Permit Modification Application Revised December, 1998 Page 3 of 4 JUSTIFICATION 18.116.180 Modification. "Any condition imposed upon the granting of a Conditional Use Permit, Planned Development Permit or Planned Unit Development Permit may be modified or eliminated, or new conditions may be added; provided that the original granting body, the Commission or Council, first conducts a public hearing thereon, in the same manner as required for the granting of the same. No such modification shall be made unless the Commission or Council finds that the modification is necessary to protect the public interest and/or adjacent or abutting properties; or, in the case of deletion of an existing condition, that such action is necessary to permit reasonable operation and use under the approved permit." The two findings described above must be made by the granting body before the modification can be approved. Consider including additional information or supporting statements with the application that Planning staff can provide in the staff report. Conditional Use/Planned Development/Planned Unit Development Permit Modification Application Revised December, 1998 Page 4of4 29 JUN 2005 PM12:41 cornerstone CHURCH Of SAN AIEC3O June 29, 2005 City of National City c/o Andrew Hoskinson Associate Planner Re: Detajis'regarding CUP modification `Cornerstone Church of San Diego, respectfully requests conditional use permit:' number CUP-203-20 to be modified to accommodate a sanctuary to seat 8Q0. people. In addition Cornerstone Church of San Diego desires to offer the following services for the community of National City: 1. Private Accredited Christian School: • School will begin with 151 grade and expand every until 6th grade. • We estimate the school will serve 300 children when we reach 6th grade. • Hours of operation will be standard 7am -3pm Monday —Friday 2. Adult Day Care: • Amount of Seniors served will be determined by State regulations. • Hours of operation will be 8am-5pm 3. Child Day Care: • We anticipate serving families with their pre-school needs through our daycare services. Hours of operation 6am-6pm Monday -Friday. • Amount of children served will be determined by State regulations. tor Sergio De La ora 147.. a 3rd AVC[we, 01:140. vista, CA gigio 619.6,56.1333 F:\PROJECTS\Corner_ ,eChurch\05-05-25\CUP Site Plan.dwg, 6/28/2005 11:26:57 AM www.turningthehearts.com \\� \ ST8'+154 5 0 T 8 FfiMuy6 D f15TR -\ - Mf0,17 P n,s CA rrrth ENLARu_ CONC.'+p;;. LSE= LL uj a O u C.U,P.1 8 0 0 a 0 0 0 0 0 O ri• , rl111 1'1'1, III IIII II II II II II , II II !I I Ir 111 r ■� ,I II 11 IL 1. �I���III111�11�1�111�III���III��, III II II 'I♦ ;11'I j'' I: I1'; 11 i1d�i�1 rl%%% II i1 I �' // , ;//G I�1■ /�'•t1j1j11j//...;. - %- •i o 'I ......17. , -,[ jq- c-j �j „ %� 77. 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CHILD 1 INDOOR ' Y•CARE ()CATION yak L� � ...._(�I -U_' �.s'6 0 LJ ® 0 0 ®.. 0 FIRST FLOOR DAY-CARE PLAN I/� C1U1P1 L CHILD DAY-CARE unra i � I DROP-OFF & PICK-UP LOCATION F:\PROJECTS\Co nerstoneChurch\DS-05-25\CUP 1st Floor Plan.dwg, 6/29/2005 8:26:42 AM Phase II Schematic Design SECOND FLOOR PLAN e.e scuE, 0 AREAS ISTi0 ry_0E ARE APPR00}JA AOgyp ;,RE i0 3[ uSEL+ 0C.R c00000 P!5^.NI0A 00003S 3 301y ITEM #26 8/16/05 Metro JPA Representative Councilman Natividad — Report to the Council. (Report by Public Works Director Robert Saucedo and Wastewater Maintenance Supervisor Joe Smith) City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE August 16, 2005 27 AGENDA ITEM NO. ITEM TITLE Notice of Decision — Zone Variance for Less Than Required Drive Aisle Widths in the Parking Lot at the Sweetwater Town and Country Shopping Center (Applicant: Pedro Garcia) (Case File No.: Z-2005-2) PREPARED BY An�reve'Hoskinson 336-4310DEPARTMENT Planning EXT. EXPLANATION The project site is the parking lot of 30-acre Sweetwater Town & Country shopping center, which is on the south side of Sweetwater Road adjacent to the west of Interstate-805/State Route-54 interchange in the General Commercial -Planned Development (CG-PD) Zone. The center is fully developed with approximately 224,000 square feet of gross leaseable area. The main parking lot is located on the north side of the property between Sweetwater Road and the main buildings on the site. Most of the parking stalls in the parking lot are 60 degree angled spaces located off of 24 and 25-foot drive aisles. The center currently exceeds the number of required parking spaces. The applicant proposes to reconfigure and re -stripe the main parking area between Sweetwater Road and the main buildings. All of the angled spaces will be changed from 60 degree stalls to 90 degree stalls (see attached Site Plan) resulting in an additional 50 parking stalls. Some of the existing landscape planters and existing trees will be removed as a part of the reconfiguration; new landscape planters will be added to the parking lot for a net increase in landscaping. Also, the second driveway from the west along Sweetwater Road will be narrowed from approximately 60 feet to 30 feet; all other driveways will remain unchanged. All of the drive aisles will be 24 feet wide, where the Land Use Code requires 27 feet. Planning Commission considered this item at a public hearing July 18, 2005. The Commissioners sought clarification that reducing drive aisle widths would not impact required fire lanes. They approved the Variance finding that even with reduced aisle widths, the parking lot would be more functional than it is now, and that other centers within the area do not meet all of the City's current parking standards. r Environmental Review N/A Categorical Exemptioi 1S Approval Financial Statement N/A >STAFF RECOMMENDATION cp Staff concurs with the Planning Commission and recommends that the Notice of Decision be filed. Approved By: Finance Director Account No. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. 1. Planning Commission Resolution 19-2005 2. Location Map 3. Site Photographs 4. Site Plan and Landscape Plan A-200 (Rev. 7/03) RESOLUTION 19-2005 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA, APPROVING A ZONE VARIANCE FOR LESS THAN REQUIRED DRIVE AISLE WIDTHS IN THE PARKING LOT AT THE SWEETWATER TOWN AND COUNTRY SHOPPING CENTER APPLICANT: PEDRO GARCIA CASE FILE NO. Z-2005-2 WHEREAS, the Planning Commission of the City of National City considered a Zone Variance application for less than required drive aisle widths in the parking lot at the Sweetwater Town and Country Shopping Center at a duly advertised public hearing held on July 18, 2005 at which time oral and documentary evidence was presented; and, WHEREAS, at said public hearings the Planning Commission considered the staff report contained in Case File No. Z-2005-2, which is maintained by the City and incorporated herein by reference along with evidence and testimony at said hearing; and, WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law; and, WHEREAS, the action recited herein is found to be essential for the preservation of public health, safety, and general welfare. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of National -City, -California, -that the testimony and -evidence -presented to -the -Planning -Commission - at the public hearing held on July 18, 2005, support the following findings: 1. That because of special circumstances applicable to the property, including size, location or surroundings, the strict application of Title 18 of the Municipal Code (Zoning) deprives such property of privileges enjoyed by other properties in the vicinity and under the identical zone classification, since Sweetwater Town & Country shopping center is the only community level shopping center (e.g. gross leaseable area of 100,000 to 300,000 square feet) in the commercial area and it generates a higher parking demand than other centers in the area. The slight reduction in drive aisle widths (3 feet) will allow for 50 additional visible and accessible parking spaces and create a functional parking lot. 2. That the requested Variance is subject to such conditions which will assure that the adjustment authorized will not constitute a grant of special privileges inconsistent with the limitations upon other properties in the vicinity and zone in which such property is situated, since other commercial shopping centers in the immediate area and under the General Commercial -Planned Development Zone do not meet all of the parking lot requirements (e.g. number of parking spaces) in Title 18 (Zoning) of the Municipal Code. 3. That the Variance does not authorize a use or activity which is not otherwise expressly authorized by the zoning regulations governing the parcel of property, since Sweetwater Town & Country shopping center is a permitted use in the General Commercial -Planned Development Zone. BE IT FURTHER RESOLVED that the application for Zone Variance is approved subject to the following conditions: 1. This Zone Variance authorizes 24-foot wide drive aisles in the parking lot of Sweetwater Town & Country shopping center. Except as required by conditions of approval, all plans submitted for permits associated with the project shall conform with Exhibit A -revised, Case File no. Z-2005-2, dated 5/23/2005. 2. A detailed landscape and underground irrigation plan, including plant types, methods of planting, etc. shall be submitted for review and approval by the Planning Director. The landscape plan shall reflect the use of drought tolerant planting and water conserving irrigation devices. 3. At least half of the parking lot canopy trees shall be at a minimum 24 inch box at the time of planting. 4. Television cable companies shall be notified a minimum of 48 hours prior to filling of cable trenches. 5. Before this Zone Variance shall become effective, the applicant and the property owner both shall sign and have notarized an Acceptance Form, provided by the Planning Department, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Zone Variance. The applicant shall also submit evidence to the satisfaction of the Planning Director that a Notice of Restriction on Real Property is recorded with the County Recorder. The applicant shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Zone Variance are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to form by the City Attorney and signed by the Planning Director prior to recordation. 6. This permit shall become null and void if not exercised within one year after adoption of the resolution of approval unless extended according to procedures specified in Section 18.116.190 of the Municipal Code. BE IT FURTHER RESOLVED that copies of this Resolution be transmitted forthwith to the applicant and to the City Council. BE IT FINALLY RESOLVED that this Resolution shall become effective and final on the day following the City Council meeting where the Planning Commission resolution is set for review, unless r. appeal in writing is filed with the City Clerk prior to 5:00 p.m. on the day of that City Council meeting. The City Council may, at that meeting, appeal the decision of the Planning Commission ar set the matter for public hearing. CERTIFICATION: This certifies that the Resolution was adopted by the Planning Commission at their meeting of August 1, 2005, by the following vote: AYES: PRUITT, BACA, FLORES, REYNOLDS, GRAHAM NAYS: ABSENT: ALVARADO ABSTAIN: CARRILLO, MARTINELLI CHAIRWOMAN 1 National City Golf Course 200 0 State Route 54 200 400 Feet SWEETWATER TOWN & COUNTRY SHOPPING CENTER CITY BOUNDARY AN LOCATION MAP Variance for less than required parking aisle widths the Sweetwater Town and Country Sopping Center Z-2005-2 NATIONAL CITY PLANNING DRN. DAT' 7/5/05 INITIAL HEARING: 7/18/05 Site Photographs View of typical 60 degree angled parking stalls View of typical existing landscape planters and mature Eucalyptus trees SITE PLAN NEW / - 101120�z�E) —o_ SITE PLAN EXISTING (F, ECf,PU. C Sae: P.80'L• MAP NIA M.6,9 Be0D97L ECEM ALL PLANTING AREAS SHALL BE IRRIGATED ACCORDING TO PLANT TYPE AND ABLE ENVIRONMENTAL EXPOSURE ALL IRRIGATED AREAS SHALL RECEIVE UNIFORM COVERAGE BY MEANS OF AN AUTOMATICALLY CONTROLLED, ELECTRICALLY ALL BE ACTIVATED UNDERGROUND PIPED IRRIGATION SYSTEM FOR VATER CONSERVATION AND TO MINIMIZE EROSION STATE DF THE ART AHTEHATTE or REDDUCEDD PRESLLER ITH SURENASTER VALVE BACKFLOW PREVENTER WILLD RAIN LK USED IN ACCORDANCE GT VITN LOCAL AND REGIONAL STANDARDS. REMOTE CONTROL VALVES SHALL BE UTILIZED WITH LOW PRECIPITATION HEADS FOR REDUCED VATER CONSUMPTION. PRESSURESIML USED WHERE APPLICABLESATING DRIP AND ` ALL PRESSURIZOW ED MMAINLITE NE IANNDNT Ci1O1, "ROVED LATERAL LINES %AL BE PVC INSTALLED BELOW GRADE PER LOCAL AND SIZE PO SHALL STANDARDS. AN AUTOMATIC, VATER EFFICIENT IRRIGATION SYSTEM SHALL BE PROVIDES, TO AUTOMATIC ENDERMAINTAIN NTNIRRIATI6 A NE AS ANT DE GRAPHIC SCALE (dMST ) I We - 40 ry ROAD TREE N *SAM PLACRP1LNT TREES, AND LARGE SNRUDS SHALL DE PLACED AB FOLLOWS, - A PIK CP E. FT. FROM CENTER cm TREES OR LARGE SHRUB*. TO EDGE CP DRIVEWAYWATER METER GAS METER OR SEDER LATERALS. - A MM OF b FT. BEMEEN CENTER OF TREES OR LARGE &JR GS M0 POINT Of 8TERBECTIGN OF THE EDGE Of DRIVEWATS 40 STREETS OR WALKWAYS. - A MIN CR 10 Fr. DETUER( CenleR OF TREES AHD LARGE SHRUGS TO )(TILITT POLES. - A MN Cr 0 FT. BETILEEN CENTER OF TREES 0R LADE BHRIBB AND FIRE HTDRANTS, &IRE DEPT. BPRINCLER AND BTANDPIPE,CCB*NEOTICN9. SITE Pu SWEE WATER PARCEL T PARCEL 1z4,170Th SITE PLAN NEW So I.1Vtl-0' 4ADRRAilnL.Nf ALL LANDSCAPE IPRIG LANDSCAPE STAN :e l STANDARDS AS OFF :el S PLANTED M TH A v1 T MM ALL PLMRING AREAS' Si6R.{ SHREDDED BARK fE0 INDUSTRIES, INC., 71b 4. IF ANY E%ISTING PLANS ARE DMN* Q SHALL HE REPAIR!D NS/! THE APPROVED PLI011 PV Ti S APPRIPRI A 6. SHALL.'" RE DEVELTHEOPMENTLOCh SERVjCES. MO ENHANCER MARD;CAPE ►1 AREA CN.CU.ATIONC MO HRUSN MANAGEMENT SHM • LANDS( TPT 1_ Lam WOW. TRH! TRH PROVE II . Nra a DHReD rRov G GRa MEETING DATE August 16, 2005 City of National City, California COUNCIL AGENDA STATEMENT 28 AGENDA ITEM NO. %ITEM TITLE Notice of Decision — Planning Commission Approval of a Conditional Use Permit for a Wireless Communications Facility in an existing Shopping Center at 1035 Harbison Avenue. (Applicant: NEXTEL Communications — Tim Kolset) (Case File CUP-2005-3) PREPARED BY Martin Reeder, 336-4310 DEPARTMENT Planning EXT. EXPLANATION The project area includes most of the shopping center north of the Plaza Boulevard and Harbison Avenue intersection, with approximately 320 feet of frontage on Harbison Avenue. The property is approximately 1.76 acres in size and is zoned General Commercial (CG-PD-H35). The applicant proposes to install a wireless communications facility within a roughly 400 square -foot lease area at the south end of the shopping center. The proposal includes a 35-foot tall artificial palm tree (monopalm) with 12 panel antennas, and a 300 square -foot equipment shelter (approximately 14 feet by 21 feet by 131/2 feet high) designed to match the adjacent building in texture and color. Two live palms are also proposed along with shrubs and bushes which will enhance the currently drab area; it will soften the appearance of the base of the building and help to screen the equipment shelter. The Planning Commission held a hearing on this item on July 18, 2005, where the applicant answered questions regarding property owner notification and facility maintenance schedules. The Planning Commission voted to approve the Conditional Use Permit finding that the site is suitable for the proposed facility, that the facility is appropriately designed, and that the additional service is needed. Environmental Review X N/A Categorical Exemption MIS Approval Financial Statement N/A Approved By: Finance Director Account No. STAFF RECOMMENDATION Wip Staff concurs with the decision of Planning Commission and recommends that the Notice of Decision be filed. BOARD / COMMISSION RECOMMENDATION The Planning Commission approved the Conditional Use Permit. Ayes: Absent: Alvarado Abstain: Carrillo, Martinelli, Pruitt, Baca, Flores, Reynolds, Graham ATTACHMENTS ( Listed Below ) 1. Planning Commission Resolution No. 18-2005 2. Location Map Resolution No. 3. Photo simulations & site photos 4. Reduced site plan, elevations, details A-200 (Rev. 7/03) RESOLUTION NO. 18-2005 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA, APPROVING A CONDITIONAL USE PERMIT FOR A WIRELESS COMMUNICATIONS FACILITY IN AN EXISTING SHOPPING CENTER AT 1035 HARBISON AVENUE APPLICANT: NEXTEL COMMUNICATIONS — TIM KOLSET CASE FILE NO. CUP-2005-3 WHEREAS, the Planning Commission of the City of National City considered a Conditional Use Permit for a wireless communications facility in an existing shopping center at 1035 Harbison Avenue at a duly advertised public hearing held on July 18, 2005, at which time oral and documentary evidence was presented; and, WHEREAS, at said public hearing the Planning Commission considered the staff report contained in Case File No. CUP-2005-3 which is maintained by the City and incorporated herein by reference along with evidence and testimony at said hearing; and, WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law; and, WHEREAS, the action recited herein is found to be essential for the preservation of public health, safety, and general welfare. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of National City, California, that the testimony and evidence presented to the Planning Commission at the public hearing held on July 18, 2005, support the following findings: 1. That the site for the proposed use is adequate in size and shape, since the lease area (399 square feet) will have little effect on use of the 1.76-acre commercially developed property, and will utilize an unused paved area without affecting parking or access. 2. That the site has sufficient access to streets and highways that are adequate in width and pavement type to carry the volume and type of traffic generated by the proposed use, since both Harbison Avenue, a collector street, and Plaza Boulevard, a prime arterial, can easily accommodate the one to two monthly maintenance trips generated by the unmanned facility. 3. That the proposed use will not have an adverse effect upon adjacent or abutting properties since the monopalm fronds will adequately screen the twelve panel antennas, and the artificial character of the tree will not be highly noticeable, as it will be compatible with other trees in the vicinity of the shopping center. 1 4. That the proposed use is .deemed essential and desirable to the public convenience and welfare, since it will improve the performance of the Nextel wireless communications network, resulting in enhanced service for its customers. BE IT FURTHER RESOLVED that the application for Conditional Use Permit is approved subject to the following conditions: 1. This Conditional Use Permit authorizes a wireless communications facility at 1035 South Harbison Avenue in National City Plaza. Except as required by conditions of approval, all plans submitted for permits associated with the project shall conform with Exhibit A, 2nd Revision, Case File no. CUP-2005-3, dated 5/26/2005. Any additional antennas must substantially conform with the design for installation shown on these plans. 2. Plans submitted for the equipment enclosure shall specify that it will be of standard construction and not a modular building. 3. A detailed landscape and underground irrigation plan, including plant types, methods of planting, etc. shall be submitted for review and approval by the Planning Director. The landscape plan shall reflect the use of drought tolerant planting and water conserving irrigation devices. 4. The two proposed live palm trees shown adjacent the monopalm must have a minimum bare trunk height of 25 feet. 5. The pemuttee shall not object to co -locating additional facilities of other communication companies and sharing the project site, provided such shared use does not result in substantial technical or quality -of -service impairment for the permitted use. In the event a dispute arises with regard to co -locating with other existing or potential users, the City may require a third party technical study at the expense of either or both the applicant or the complaining user. This condition in no way obligates the City to approve any co -location proposal if it is deterrnined-bythe City not to be desirable in a specific case. 6. Any antennas, equipment or facilities that are abandoned, decommissioned, or become obsolete shall be removed. 7. Plans must comply with the 2001 editions of the California Building Code, the California Mechanical Code, the California Plumbing Code, the Califomia Electrical Code, and California Title 24 energy and handicapped regulations. 8. Television cable companies shall be notified a minimum of 48 hours prior to filling of cable trenches. 9. Exterior walls of buildings/poles to a height of not less than 6 feet shall be treated with a graffiti resistant coating subject to approval from the Building and Safety Director. Graffiti shall be removed within 24 hours of its observance. 10. The facility shall maintain vertical clearance from overhead electric pole lines consistent with OSHA standards. 11. Before this Conditional Use Permit shall become effective, the applicant and the property ..,caner both shall sign and have notarized an Acceptance Form, provided by the Planning Department, acknowledging and accepting all conditions imposed upon the approval of this 2 permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Conditional Use Permit. The applicant shall also submit evidence to the satisfaction of the Planning Director that a Notice of Restriction on Real Property is recorded with the County Recorder. The applicant shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Conditional Use Permit are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to form by the City Attorney and signed by the Planning Director prior to recordation. 12. This permit shall become null and void if not exercised within one year after adoption of the resolution of approval unless extended according to procedures specified in Section 18.116.190 of the Municipal Code. BE IT FURTHER RESOLVED that copies of this Resolution be transmitted forthwith to the applicant and to the City Council. BE IT FINALLY RESOLVED that this Resolution shall become effective and final on the day following the City Council meeting where the Planning Commission resolution is set for review, unless an appeal in writing is filed with the City Clerk prior to 5:30 p.m. on the day of that City Council meeting. The City Council may, at that meeting, appeal the decision of the Planning Commission and set the matter for public hearing. CERTIFICATION: This certifies that the Resolution was adopted by the Planning Commission at their meeting of August 1, 2005, by the following vote: AYES: PRUITT, BACA, FLORES, REYNOLDS, GRAHAM NAYS: ABSENT: ALVARADO ABSTAIN: CARRILLO, MARTINELLI CHAIRWOMAN 3 CITY BOUNDARY PROJECT LOCATION ZONE BOUNDARY AN LOCATION MAP Conditional Use Permit for a Wireless Communications Facility at an existing shopping center at 1035 South Harbison Avenue CU P-2005-3 NATIONAL CITY PLANNING DRN. DATE: 6/9/05 INITIAL HEARING: 7/18/05 LOOKING N.W. FROM PLAZA BLVD (E) SINGLE -STORY COMMERCIAL BUILDING PROPOSED NEXTEL 37 FT. HIGH MONO•PALM WITH TEXTURED BARK CLADDING & 1XANTENNAS TOTAL (E) SINGLE -STORY COMMERCIAL BUILDING 'PROPOSED NEXTEL 'EQUIPMEIr BUILDING PAINTED & FINISHED-1 TO MATCH (E) BUILDING Proposed GDesign CA-7930-A SARAP (E): SIINGLE=STORY COMMERCIAL BUILDING. tiookt PROPOSED NEXTELit FT. HIGH MONO -PALM WITH TEXTURED BARK CLADDING & 12 ANTENNAS TOTAL Proposed j ]Gs',L Design LOOKING NORTH-N.E. FROM PLAZA BLVD Nextel Communications- Sarap 1035 Harbison Ave APN: 558-030-30 View of proposed project looking from North View of proposed project looking from South 1035 Harbison Ave Nextel Communications- Sarap APN: 558-030-30 View of proposed project looking from West View of proposed project looking from East Nextel Communications- Sarap 1035 Harbison Ave APN: 558-030-30 View looking from proposed project toward the North View looking from proposed project toward the South 1035 Harbison Ave Nextel Communications- Sarap APN: 558-030-30 View looking from proposed project toward the West View looking from proposed project toward the East NATIONAL CITY T NNING DEPT. EXHIBIT A, 2"d _ vision CASE FILE NO. CUP-2005-3 DATE: 5/26/2005 NEXTEL SARAP 1035 HARBISON AVE., NATIONAL CITY, CA 91950 CA-7930-A ilt DIRECTIONS TO SITE X MACSYC FGAATOMIa ANATE MO MOO MITI. m(M1 .. 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Lamm p • mom Row ON.Ir'ma ma rV —ma— w wY, °1®w.. ® to Mac .w w. .rev v r, ..a ra 'arc wm_wx ® ra mammon ® N room .ae'v n .w.. ® N MY OL. morals mu CENTER OF PROPOSED TOWN CENTER OF PROPOSED TOWER LEGAL DESCRIPTION PER TITLE REPORT: ME SA. OF HMRT20NTAL CONTROL FOR Ma SURVEY 5 Mr H0RM A1@RM6N E0NN aF 1163. PLANE COON0HATE0 SHOWN HEREON NW W TERNS OF THE CALIFORN4 STATE PLANE COORIARATE 5Y51E3 01 1933, ICNE 6. TIRE REPORT IDENTIFICATION: STEWART TIME OF CAUFOROA wwao NO 964I26r3 DATED '0/2I/26N ASSESSORS IDENTIFICATION: • APN 356-13S0-3O OWNER: SAN ! 5006A O IENSIMN, Misc. OF IRVSI DATED I2/20/1961 LA TITUDE. NORTH 37b 5007 LONGITUDE, WEST II7O1'14.57' A PORTION OF 0UART4 SECTION 106 OF RANCHO DE LA MALIGN SWAT. III THE STAR OF CWI1R/T RC SS II f09213.13 L 63062r1.61 LI. 04/ ,,Y N SOI '291 AND 1 DESCRIBED AS TIXLOWA GROUND ELEYAINRI /21,3 (NAND IS) SECO.. AT NTE 070 5 AST CORNER OF ME 17 TO 4.00 FEET OF SA0 WAITER SECTION I. INES. 5 16 10 E ALONG THE NGROCASTEILI TM OF SHO WARIER SECTION 106. 37).69 FEET TO AN NRER2ECMW ERN 2" NORTHWESTERLY LATE a TINT CERTAIN EASEMENT DEVORMO IN DEER O HE ONE NO4004.0 E AcuRFACY CF PE T.R.R E CTTT Or MA', 4L C1TY. REC... NNE IS, 199E W SOON TIER Ma ISO OE WACDL RECORDS. THENCE SOUTINESTERLY .LLPNO SYD NO0DMp4ERLr LNE 3 AND LANOMIOE AI THE COTTER (.( ]DEFT. 5410 CURVET W 31904 FEET TO I/E BEONN4O a A TANGENT 1E5 04' RAO(ry' CURVE CYMC`R r troma M 40 07 HENCE SWr0' 64 2NY A4NN 0 4 ARC OF THE �AAL ACCLLS WACY A>> ME(T� a M]0i 46410NT NMI THE MURAL ANGLE CAST63Y ERE OF 21M ERSaN AVENUE (M FEA 1W TEES, THENCE 110E): IHIN �T 340 343TRLr LNE N WHEW' W /Y120.117 FEET 3 I3 � TOOTLE WINO THE TOWER FALLS MITRII THREE (3) FEES SAID EASTERLY LINE OF NLBOSON AVENUE N 71.30'11' E MSS RET,)MMa N I511FR' W 30.T1 FEET,: HIXL 3 7I.30'1C W Lµu EEEE ID 11L DATE Of SURVEY: 11 /19/04 AFOVFHENEDNFO LASTE%Y LINE O' HARM. SEVEN THENCE ALCM34O ELSIFRLY UNE IIIr213S' W SOLD TEENTHENCE LEMHNO SAO EASTERN LNE H 7r30.48- E 70.00 MEET. THENCE 5 1r2r31- E 0211 PTET/ MO. N 71.3Py' E I9IJ1 TITT TO AN NERSECTHN WMI A WE nor It P10441L AWN BASIS OF BEARINGS AND DISTANT 30.000 TEST AT MSC ANGLES TINY ME NORTHEAmRLV (JAL a SAID WAXIER A'CIION 106; NAME ALONG SAID PARALLEL LIEN I5.11•12' W. 6109 TIER TNENa 5 7r3041- N .00 MEET RIMIER N Jrn•it' W I9.39 rt. I A PONT ON NE SOUTHEASTER. LIE Of 5A0 NORERI0TIMT N0.0 AEU OF WARIER SECMVI 100 WARM S 71.1359• W 310 SEMI PION 5E POINT OF &QNNWG( THENCE WILKE ALONG SA0 SOUTHEASTER. UM R 71u•31' E, .0 ...ET TO ONE MINT DE IRPNNNG. EMC[PTINO THEREOF TO THAT MOM DESCRIBED AS FLUOR. (SEE TIED RU'APT FOR CYWI(ETE LOLA 0ER'RPII0N). LEGAL DESCRIPTION LEASE BOUNDARY A PORTION OF WASTER SECTION /06 OF RANCHO a LA RACOON S.A. II ME SEAR OF CALIFORNIA. COUNTY OF SIN DAM DELI, A9 DESCRI6T0 AS MLEOWs: CO40NCy.0 AT ME SOM1Ed51 CORN. OP ME NORTHWESTERLY 1EO07 air 0154(0 014RTER SECTION 106; THEME SWM IT1t'Il• EAST 5 Ir29•1t• E) ALONG ME MWMEASIEO.Y LAME OF SAID O.4ATER SECTION IOE, 36P.26 FISH THEM. LEANING SAID I400TMGRTaY LNE 1.711 770.0• WEST, ST.Ts FEET TO ME TRUE POINT a BEOIWNy THEN. _C0MOVINE SOUTH YI0.O• WEST. 11..ST FEED my. SCUM Iraro' u3T. 1L0 FEET THENCE NORTH 72'0'0 LAST. IL. Tarn THENCE SOUTHIB'0'0 E65/, 11.0 FELT I THENCE NMMI I700b0451 CO FEED THENCE NORM I6'CO7O• WEST, 15.0 TEET TO THE TNIE POOR OF BEGINNING. TEASE 9NlNOIRY CON,. 397.62 SQUARE FEET OR 0.0007 ACRES. ROTS 0R LESS (...)� .CORD DATA PER LEGAL DESCRIPTION IN IDLE REPORT :0 M o" uM�ncE y Al q 1 0.70 w ({NP 3a �1.1 HPW ''S6 pry1EN5hµ I1 oa1M`[ o p�NGL \111 NL \ tow 1 �c IF SHEET IS LESS THAN 24' X 36' IT IS REDUCED FRONT -Arai F REDUCED ACCLMDNCLT (-•1- SLUM OATA RIPTION N TMEE1py1 BOUNDARY DETAIL SCN41 •.1M• YMYPe E 5 1riR r W. /LOLL DWIPIOII •RWV aI/�INN'100 iF0 b•W �p.1a• PI:LAe p1O. A}F/ C M aP may` /MVOS➢ 101 .' 1.[• PROMS. LEAN NNOYKI E 331.32 SF LEASE BOUNDARY DETAIL SOMEII'-IO• EXCEPTION ITEMS PER TITLE REPORT ® pawnor OROIRMN NEC DATE REF BRORNAI+M LOCATION A-C TAWS Alp ASRSYORS - I WARS RICNR IL PIORANE (Try 1 SERER WOW? S/l1I1 01 B 401 P LI M CGVOIA+T4 RFSTI. IS/E]/1!u• n !S r MR V4M. OWN 5 C10Tp. COMP0p9S RP 3 1S CMG, R[S7R. 3!/!/ISM R 7103 R 405 VINOUS COMMONS LEAN Of TEASE ! 3 /1 ION Ma MpE 40 R rp' N04. NO EMT L. IN/ 911 I/!Ip 0 ale7 ' MOO. 40 EDICT TOG 6 DIRRY E4gNENT On AIE OW - SLOW MOHHTC CORER NE / M3 PILE I0.55 31R1N 10 U /ERN Alt T3-MERIT SAORTE II 06 0[NR MOM RODS 0/L/NMI SEE 01-f1 - - AMC 30A03 Id RIMS Of MUM M IO33333I03 - :z 11110A11Y00111.TYLLt HIRp,SCH & COMPANY 3M'e CYiWNF .JAM- A. /A ma , L3 r130 11I1L1 of Cailoral,, MR. Op HEWED Cmanww6NW 3101 MN DAVE 5E 130 SR1 06QD1 (�n94 Onl MMIE W LNi 360-4303 SARAP CA-7930A 1035 HARBISOII AVENUE 1O3GWL CRT. CA COUNT OF SAN DEMO CURRENT ISSUE DATE 01/31/05 ISSUED FOR; ZONING APRONS (094 wm` TYRE MO_ f MANED OAIR_ OAIE` ATAME 011E_ WIER i PROJECT N3 CA-7030A OMA6N BT OR 0*0+75 BI IT SITE SURVEY SEE. NJIW C - 1 IlA SINYrtY: ILW S0131.1.6, 1F7E WAIL 511E SURVEY ITEM #29 8/16/05 NATIONAL • CITY •TRANSIT MONTHLY REPORT AUGUST-2005 Technology 1. Completion for the joint NC -MIS Department —NCT project for communitymessaging via electronic kiosk is anticipated within the next few months. NC Departments are working closely with NC -MIS to add their information to this new community resource. 2. The joint NCT-NCPD Security camera project is being evaluated for placement of Real Time video cameras along a NCT bus route and we expect to have a vendor demonstration at the Public Safety Fair in September. 3. NCT has received funding approval for the RCS Radio system and this equipment will replace our existing NEX TEL system in our bus fleet and staff vehicles. The equipment has been ordered and we expect delivery sometime in September with full installation 8-10 weeks later. NCT is very pleased to join other NC. Departments that are already taking advantage of this technology, as this will greatly improve our communication capability especially in an emergency. PERFORMANCE DIVIDENDS Ridership: JTJLY-04 JUNE 05 JULY-05 Ridership: 132,720* 140,777 134,389* Passengers per mi. 3.17 3.62 3.47 Passengers per hr. 37.12 40.56 39.81 Revenue miles: 41,809 38,849 38,700 Revenue Hours: 3,575 3,471 3,376 Road Calls 12 04 02 Accidents 01 00 01 Lift deployments N/A 560 520E Our on -time performance 90.2% 95.0% 91.7% * One less service day due to Holiday on July 4th 522 West 8th St. • National City, California 91950-1004 • (619) 474-7505 Fax (619) 474-2058 McDonald Transit Associates, Inc., Contract Operator for NCT 1 Maintenance: NCT Revenue vehicles used 12,673 gallons of low sulfur diesel fuel. Our average cost per gallon was $1.85 per gallon in July. NCT maintenance personnel performed 12 Preventative Maintenance Inspections (PMI's) and made 31 minor repairs consisting of lights, window liners, doors, radio & camera adjustments, graffiti, decal and body scratches. We also made 04 major repairs consisting of water pump, brakes, air bag, lift pump and alternators to our fleet vehicles in July. Bus Stop Amenities: NCT was able to install four (4) additional benches in July. The first was a new metal model and was placed at the 24th Street Trolley Station Bus Stop. The remaining three were our reconditioned concrete models and were placed along Route 601. These benches were requested by area residents from information that we received via Leslie Deese at Community Services. 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." NCT is also continuing to evaluate art projects involving special benches for bus stops and a possible mural on our facility facing the Blue Line Trolley line or at near the 24th Street Trolley Station. These projects were part of a recent NC Art Committee presentation to the Mayor and Council. Employee Recognition: On Sunday, July 10th NCT held its First Annual Safety Award and Family Barbecue at our W. 8th Street facility. Many of our employees, their families and children participated and it was a great day all around. We were very pleased as an organization to be able to recognize sixteen (16) employees for being accident free during the last twelve months. We also recognized employees for years of service and perfect attendance and they received specially designed lapel pins, which may be worn as part of their uniform. McDonald Transit Associates contributed over $1,000 towards this event and Burnham Insurance provided safety award planning assistance along with door prizes including 8 front row Padre tickets (2 games), which were greatly appreciated. Burnham Ins. Agent John Hill also attended with his family and joined me in .cooking (and sometimes burning slightly) for this fun event. We are already looking forward to making this a permanent Annual event at NCT. 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. 2 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: August 5, 2005 •e.4.&-S.1"‘-J n P. Webster Sr. ice 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 ❑Jul-05 COS rll ieg^S City of National City Sales Tax Ballot Measure Farr Sheet • CITY FACING A STRUCTURAL BUDGET DEFICIT o $6.7 million shortfall o City closed gap using monies available one-time only for Fiscal year 2005/2006 • OPTIONS CONSIDERED TO COVER DEFICIT INCLUDED: o Utility user tax — was not recommended by City Manager because too costly to residents o Property tax increase — was not recommended by CM because too costly to residents o Impose cuts in programs and services across all City departments o Use of Redevelopment Agency funds — State law restricts o Sales tax increase — City Council placed on November 8th Ballot upon recommendation of CM • MAIN FEATURES OF SALES TAX o Tax applies to consumers o Consumers coming into the City pay tax — Tax revenue may be used for City programs and services o Projections show that one-half to two-thirds of the tax will be paid for by people other than National City residents o Provides revenue to continue funding vital services & prevent cuts in City programs and services • PROPOSED SALES TAX SIMILAR TO EXISTING SALES TAX BUT IS DESTINATION BASED o No tax on medicine, non -prepared food, or housing o No new tax on car, motorcycle, boat or plane sales made to consumers from outside the City (State law) o Businesses in the same industry are treated the same • REVENUE FORECAST o National City's existing iocal sales tax generates $15.4 million o A one (1) cent tax increase could generate approximately $9 million annually o With an additional one (1) cent sales tax, N.C. would receive 2 cents of 8.75 cents • IMPLEMENTATION o Election (November 81h) - Voter approval 50% + 1 o Effective April 1, 2006 o New revenues come to the City beginning May 2006 o Outside expert evaluation panel to advise the City every 5 years re: continuance of tax • EXAMPLES OF NEW SALES TAX APPLICATION: o If a person spends $10.00 for a meal out, it would cost an extra 10 cents o If a family spends $200.00 on an entertainment system, it would cost an additional $2.00 *For more information contact: Chris Zapata, City Manager at 336-4240 General Fund By Department Total $36,388,245 Rerreining Departrents, $5.3 Engineering $1 M Comrunity Services $1.7M Public Works. $1.9M Fire $64 M— Police, $19M 8 Police ® Fire Operations ❑ Public Works ❑ Community Services 0 Engineering • Remaining Departmen Current Revenue Without the Additional Penny Sales Tax = S30,000,000 20% Cuts By Department Total $7,079,081 Remaining Departments $11M Police $3.8M Engineering $.2M-, Community Services $.3M Public Works $.4 M Fire S1.3M ❑ Police o Fire Operations ❑ Public Works ❑ Community Services o Engineenng ■ Remaining Departments 0,12 6e0 G�-�' 7 v iS, o Sf % h .v: