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HomeMy WebLinkAbout2005 11-15 CC AGENDA PKTAgenda Of A Regular Meeting National City City Council Council Chambers Civic Center 1243 National City Boulevard National City, California Regular Meeting - Tuesday — November 15, 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 espanol se proporciona durante sesiones del Consejo Municipal. Los audidfonos estan disponibles en el pasillo al principio de la junta. I // 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 11/15/05 PAGE 2 PRESENTATION 1. Introduction of Ms. Maria D. Munoz, Governing Board Member, National City School District - Councilman Natividad INTERVIEWS/APPOINTMENTS 2. Interviews and Appointments: Housing and Community Development. (City Clerk) 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. Approving the Minutes of the Adjourned Regular City Council Meeting of August 30, 2005, the Regular City Council Meeting of September 20, 2005 and the Special City Council Meeting of October 25, 2005. (City Clerk) 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 awarding a contract to Rore Environmental Science & Engineering in the amount of $23,890 for preparing a subsurface site assessment and implementing remediation per requirements of the County of San Diego Department of Environmental Health (DEH) at the Police station located at 1200 National City Blvd. (Engineering) 6. Resolution allocating $91,360 from the Non -Departmental Provision for Contingency to Account No. 001-409-710 to Account No. 196-409-500-598-1156 and awarding a contract to RORE Environmental Science & Engineering in the amount of $174,460 for the removal of four underground storage tanks to conduct a subsurface site assessment and to implement remediation per requirements of the County of San Diego Department of Environmental Health at the Public Works yard located at 2100 Hoover Avenue. (Engineering) COUNCIL AGENDA 11/15/05 PAGE 3 CONSENT CALENDAR (Cont.) 7. Resolution of the City of National City approving Change Order Number 15 with Jaynes Corporation in the combined total amount of $168,061 for various necessary design modifications and upgrades to the National City Library and authorizing the City Engineer to sign the change order. (Engineering) 8. Resolution scheduling a Public Hearing date on December 6, 2005 to determine an Underground Utilities District 24 (Phase 1) for the purpose of converting the overhead facility along 8th Street from National City Boulevard to Highland Avenue. (Engineering) 9. Request to use the Martin Luther King Jr. Community Center by the National School District for a "Staff Development Workshop" for school district employees on Wednesday, December 7, 2005. (Community Services) 10. Temporary Use Permit — Temporary Trailers for Chula Lumber at 901 W. 23rd Street. September 1, 2005 to September 1, 2007. (Building & Safety) 11. Temporary Use Permit — Granite Slab Sales' Inflatable Monkey at 1124 Coolidge Avenue from November 16, 2005 to January 15, 2006. (Building & Safety) 12. Temporary Use Permit — Rotary Club Paradise Valley Garage Sale at Kimball Park on December 10, 2005 from.8 a.m. to 1 p.m. (Building & Safety) 13. WARRANT REGISTER #16 (Finance) Ratification of Demands in the amount of $710,182.27. 14. WARRANT REGISTER #17 (Finance) Ratification of Demands in the amount of $1,196,132.56. 15. WARRANT REGISTER #18 (Finance) Ratification of Demands in the amount of $335,809.83. COUNCIL AGENDA 11/15/05 PAGE 4 CONSENT CALENDAR (Cont.) 16. Requesting approval of the City Council to cancel the January 3, 2006 City Council meeting. (City Manager) ORDINANCE FOR INTRODUCTION 17. An Ordinance of the City Council of the City of National City adding Chapter 10.58 to the National City Municipal Code to regulate business licenses and practices for "Deferred Deposit Transaction Businesses," also known as "Payday Lenders," and repealing Ordinance No. 2004-2254. (City Attomey) ORDINANCES FOR ADOPTION 18. An Ordinance of the City Council of the City of National City amending Title 10 of the National City Municipal Code by adding Chapter 10.63 to regulate proximity of sex offenders to children's facilities. (City Attorney) 19. An Ordinance of the City Council of the City of National City amending the Municipal Code by adding Chapter 10.26 thereto, pertaining to the registration of renters at public storage facilities. (Police) 20. An Ordinance of the City Council of the City of National City amending Title 1 of the National City Municipal Code by amending Chapters 1.42 and 1.44 pertaining to the process for selection of hearing examiners for administrative remedies. (City Attorney) 21. An Urgency Ordinance of the City Council of the City of National City adding Chapter 10.58 to the National City Municipal Code to regulate business licenses and practices for "Deferred Deposit Transaction Businesses," also known as "Payday Lenders" and repealing Ordinance No. 2004-2254. (City Attorney) PUBLIC HEARINGS 22. Public Hearing to consider the proposed Mitigated Negative Declaration for the Street Widening Improvements on Plaza Boulevard from Highland Avenue to Euclid Avenue. (Engineering) COUNCIL AGENDA 11/15/05 PAGE 5 PUBLIC HEARINGS (Cont.) 23. Public Hearing — Amendment to the boundary of the National City Downtown Specific Plan to include properties at the northeast corner of 9th Street and D Avenue. Applicant: Gulf Unlimited Corporation. Case File No.: SP-2005-2. (Community Development Commission) NON CONSENT RESOLUTION 24. Resolution amending the boundary of the National City Downtown Specific Plan to include properties at the northeast corner of 9th Street and D Avenue. Applicant: Gulf Unlimited Corporation. Case File No.: SP-2005-2. (Community Development Commission) NEW BUSINESS 25. Report on mobilehome park conversions. (City Attorney) 26. Notice of Decision — Planning Commission approval of a Conditional Use Permit for a wireless communications facility on National City Middle School property at 1701 D Avenue. (Applicant: NEXTEL Communications) (Case File CUP-2005- 16) (Planning) 27. Verbal report and discussion regarding Metropolitan Transit System's proposed regional bus routes (Vice Mayor Morrison) 28. Verbal Report on Fiscal Situation/Budget. (City Manager) 29. Resolution waiving the bid process and accepting a proposal from SSD Systems for the provision and installation of public safety cameras on Roosevelt Avenue in the amount of $60,550.96 ($53,000 to be paid from grant funds, balance from Management Information Systems). (Purchasing/Management Information Systems/Police) 30. Alpha Project Progress Report — August 1, 2005 — September 1, 2005. (Public Works) COUNCIL AGENDA 11/15/05 PAGE 6 NEW BUSINESS (Cont.) 31. National City Transit Monthly Report — November 2005 (John P. Webster, Sr., General Manager, National City Transit) MAYOR AND CITY COUNCIL Next Regular City Council Meeting — Tuesday — December 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 11/15/05 Introduction of Ms. Maria D. Munoz, Governing Board Member, National City School District - Councilman Natividad — City of National City, California COUNCIL AGENDA STATEMENT November 15, 2005 MEETING DATE AGENDA ITEM NO. 2 ITEM TITLE INTERVIEWS AND APPOINTMENTS: HOUSING AND COMMUNITY DEVELOPMENT COMMITTEE PREPARED BY EXPLANATION Michael R. Dail/6/ DEPARTMENT City Clerk EXT. There are three vacancies on the committee. We have one current application on file. One additional application may be received prior to the meeting. CEnvironmental Review XX N/A MIS Approval Financial Statement None >STAFF RECOMMENDATION Interview and appoint BOARD / COMMISSION RECOMMENDATION NA Approved By: Finance Director Account No. ATTACHMENTS ( Listed Below) Resolution No. Application(s) A-200 (Rev. 7/03) 10001 0t1L3/LG/70 YJL: • L11T Vr bnlMI4VMMI.611Y kaWci*i4'l25 rrna pL 117'Z1/05 Cal i Wan P. MC Date CI OF NATIONAL CITY APPLtC ON FOR APPOINTMEPIT TO CITY BOARDS, COMMISSIONS, AND COMMITTEES ❑ Building Advisory & Appeals Board* ❑ Civil Service Commission ❑ Community & Police Relations Commission* Housing & Community Development Committee "0 Library Board of Trustees 0 Military, Civic and Special Events Advi ory Board 0 Parks & Recreation Advisory Board 0 Planning Commission Note: Applicants must be residents a Name _ MG r\t) 4 I 'er da- Ps--e Business Affiliation Cc Home Address 0 Port Commission O Public Ait Committee" ❑ San Die;.lo County Water Authority O Senior ("itr:ens Advisory Board 0 Street Tree & Parkway Committee ❑ Serra IJ hre ry System Advisory Bd 0 Sweetw;ate r Authority ❑ Traffic Saa uty Committee d registered to vote In the City of National City. Liz JR. rper✓P, Tel, No. COP- / -tDs7(o ri rail Title Rk OK Business Address 3'63`f aOrl(f Su m -'I& No, 0_¢' 57I Ccio?b' Length of residence in National City I r . San Diego Countyo California a ©-i rS, Educational Background ) p/ y lo C.hdk tAt, f {,yh be f S Yt n )i16 c.) (.n(✓ercl . eivevta/ Occupational Experience L 411-}�(j �a ( p f ` I -i /S>7Cr • Professional or technical organization merhberships i .. N • A �, C , 4, R, Al. 4. t-I Civic or community experience, membership, or previous public service; appointments: 10 lull4i.t al° r,S S• 1 Experience or special knowledge pertaininh to area of interest: ;line r<fi R I fii cot Q _'ems (t ►HQ.a. Have you ever been convicted of a crime? No Yes lJa-VGs Signs ure Please feel free to provide sdtlitlonal inform f"rl G c 2 d R,- A ., d4 PF1f I-f fw Please return completed form to: City Clerk's Office 1243 National Ciy Blvd, National City A l 0 10 Thank you for your interest in serving the City of Neat oral City. (This documentl is filed as a public documen ) Residency requirements may not apply =ndors 16 ent. Ptviaed July 15, 2004 ITEM #3 11/15/05 Approving the Minutes of the Adjourned Regular City Council Meeting of August 30, 2005, the Regular City Council Meeting of September 20, 2005 and the Special City Council Meeting of October 25, 2005. ITEM #4 11/15/05 City of National City Office of the City Clerk 1243 National City Blvd., National City, CA 91950-4397 Michael R. Dalla — City Clerk (619)336-4226 (619) 336-4229 To: Honorable Mayor and Council From: Michael Dalla, City Clerk Subject: Ordinance Introduction and Adoption It is recommended that the City Council approve the following motion as part. of the Consent Calendar: "That the City Council waive reading of the text of all Ordinances considered at thismeeting and provide that such Ordinances shall be introduced and/or adopted after a reading of only the title". mrd City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE November 15, 2005 5 AGENDA ITEM NO. (ITEM TITLE Resolution awarding a contract to RORE Environmental Science and Engineering in the amount of $23,890 for preparing a subsurface site assessment and implementing remediation per requirements of the County of San Diego Department of Environmental Health (DEH) at the Police Station located at 1200 National City Boulevard. PREPARED BY Stephen Kirkpatrick DEPARTMENT Engineering EXT. 4380 EXPLANATION See attached Explanation. Environmental Review . l/A MIS Approval (Financial Statement Approved By: )1/'1 W34.. Funds are available in account number 196-409-500-598-1156. Finem rector Account No. STAFF RECOMMENDATION Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) 1. Resolution 2. RORE Contract Resolution No. A-200 (Rev. 7/03) EXPLANATION The underground diesel fuel tank located on the north side of the Police Station was recently removed as required by the San Diego County Department of Environment Health. The tank was removed because it did not meet current standards for underground fuel tanks. Specifically, it did not have secondary containment for the tank and associated piping. As directed by the DEH, the City conducted soil testing of the area surrounding the tank at the time of its removal. The soil testing revealed that there was a diesel fuel discharge to the soil. The extent of the discharge is unknown. This contract with RORE will assess the extent of the discharge and, working with DEH, implement the appropriate remedial action. This tank was used to store fuel for the Police Station emergency generator and was installed as part of the PD construction project in 1992. Although the tank sat full, the fuel has really only been used to perform routine maintenance on the generator. A 55-gallon a day tank has been installed instead of the underground tank. This is enough fuel to run the generator for more than 24 hours. RORE Environmental Science & Engineering was selected by the Community Development Commission through the Request for Qualification process appropriate for selecting a professional service. City staff is "piggy -backing" on that selection process and recommending that the contract be awarded to RORE based upon their qualifications. RESOLUTION 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AWARDING A CONTRACT TO RORE ENVIRONMENTAL SCIENCE AND ENGINEERING, INC. IN THE AMOUNT OF $23,890, FOR PREPARING A SUBSURFACE SITE ASSESSMENT AND IMPLEMENTING REMEDIATION PER REQUIREMENTS OF THE COUNTY OF SAN DIEGO DEPARTMENT OF ENVIRONMENTAL HEALTH (DEH) AT THE POLICE STATION LOCATED AT 1200 NATIONAL CITY BOULEVARD WHEREAS, the underground diesel fuel tank located on the north side of the Police Station located at 1243 National City Boulevard was recently removed as required by the San Diego County Department of Environmental Health (DEH) because it did not meet current standards for underground fuel tanks. Specifically, it did not have secondary containment for the tank and associated piping; and WHEREAS, because soil testing of the area surrounding the tank at the time of removal revealed a diesel fuel discharge to the soil, the extent of which is unknown, the DEH requires the City to prepare a subsurface site assessment and implement appropriate remedial action; and WHEREAS, through the Request for Qualification process, the Community Development Commission of the City of National City (CDC) has contracted with RORE Environmental Science and Engineering, Inc. for on -call environmental consulting services; and WHEREAS, staff desires to piggy -back on CDC's selection process and award the contract to prepare a subsurface site assessment and implement appropriate remediation to RORE Environmental Science and Engineering, Inc.; and WHEREAS, pursuant to Section 12.60.220(D) of the National City Municipal Code, the Purchasing Agent may dispense with the requirements of the bidding process when the City Council determines that due to special circumstances, it is to the City's best interest to purchase a commodity or enter into a contract without compliance with the bidding procedure; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby finds that special circumstances exist and awards the contract to prepare a subsurface site assessment and implement remediation at the Police Station located at 1200 National City Boulevard, per requirements of the County of San Diego Department of Environmental Health to: RORE ENVIRONMENTAL SCIENCE AND ENGINEERING, 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 RORE Environmental Science and Engineering, Inc. and the City of National City to prepare a subsurface site assessment and implement remediation at the Police Station located at 1200 National City Boulevard, per requirements of the County of San Diego Department of Environmental Health. Said contract is on file in the office of the City Clerk. --- Signature Page to Follow --- Resolution No. 2005 — November 15, 2005 Page 2 PASSED and ADOPTED this 15th day of November, 2005. Nick Inzunza, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND RORE Environmental Science & Engineering THIS AGREEMENT is entered into this 15 day of November 2005, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and Rore Environmental Science & Engineering, a private company (the "CONTRACTOR"). RECITALS WHEREAS, the CITY desires to employ a CONTRACTOR to provide a subsurface site assessment per requirements of the County of San Diego Department of Environmental Health (DEH) at 1200 National City Blvd., City of National City (DEH File No. H32234-002). WHEREAS, the CITY has determined that the CONTRACTOR is a Environmental Science & Engineering Company 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. Steve Kirkpatrick 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. Gita Murthv 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 "A " (the Base amount) without prior written authorization from the Proiect 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. Completion dates or time durations for specific portions of the Project are set forth in Exhibit " A ". 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 CONTRACTOR'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. H. Any aggregate insurance limits must apply solely to this Agree - 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. ment. 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. Revised April 2005 20. NOTICES. All notices or other communications required or permitted hereunder shall bein 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 thetelegraph 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: To the CONTRACTOR: Steve Kirkpatrick, City Engineer City of National City 1243 National City Boulevard National City, CA 91950-4301 Gita Murthv. Ph.D Rore Environmental Science & Engineering 1640 Collinowood Drive San Diego, CA 92109-2239 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 gfficial 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. 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 costs or expenses the CITY may sshallstrictly suffer virtue of any lviolation oft s Paragrae to the CITY for all ph 21 b the CONTRACTOR. Paragraph y 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. 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. 1. 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 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. 9 Revised April 2005 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 partyas and such party's counsel and advisors have reviewed this Agreement, (v) each party 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 Rore Environmental Science & Engineering (Corporation — signatures of two corporate officers) (Partnership — one signature) (Sole proprietorship — one signature) By: By: Nick lnzunza, .Mayor (Name) APPROVED AS TO FORM: George H. Eiser, ill City Attorney (Title) By: (Name) F o/ 7r-u sk.. c—/ (Title) ENVIRON1dEh'TAL SCIENCE Sr. ENGINEERING 1640 Collingwood Drive • San Diego. California 92109-2239 • 858.483.8625 • Fax 858.483.4583 • www.roreinc.com September 28, 2005 Mr. Stephen Kirkpatrick City Engineer City of National City, Engineering Department 1243 National City Blvd. National City, CA 91950-4301 RE: Proposal to Conduct a Subsurface Site Assessment Per Requirements of the County of San Diego Department of Environmental Health (DEH) at 1200 National City Boulevard, City of National City (DEH File No. H32234-002) Dear Mr. Kirkpatrick: Per your request and based upon the required action measures requested by the County of San Diego DEH (letter dated September 13, 2005), RORE is pleased to submit the scope of work and cost proposal for work to be performed at the above -referenced site. BACKGROUND The site is located at 1200 National City Blvd., City of National City. It is currently occupied by the City of National City's Police Department. A 500-gallon diesel underground storage tank (UST) that was located by the driveway entrance to the Police Department was removed on August 2, 2005. The tank was empty when it was removed by ACE Excavating and Environmental Services, Inc. After removal, the area was backfilled with excavated soil, and paved with asphalt. RORE collected two soil samples from the area surrounding the UST, as directed by the County of San Diego DEH Inspector. The results from the soil analysis indicated a release of diesel. Following submission of laboratory data to DEH on August 25, 2005, a Notice of Responsibility dated September 13, 2005 was issued to the City of National City, from DEH that listed specific initial corrective action measures. These measures include: 1 • Maintenance of the unauthorized release site in a manner that does not create public health, safety, and environmental hazards. 2. Removal of as much of the hazardous substance from the underground tank system as is necessary to prevent further release to the environment. 3. Investigation of the unauthorized release and prevention of further migration of the released substance into the environment. 4. Remedy of hazards posed by contaminated soils that are exposed or excavated as a result of release confirmation, site investigation, or abatement activities. 5. Submission of all available information relevant to the underground tank site and the unauthorized release, including the nature and estimated quantity of release, and current or potential off -site impacts on land uses, water wells/resources, subsurface utilities, etc. OBJECTIVES Based upon background information above, RORE's objectives are to: 1. Excavate the area, which contained the 500-gallon UST. 2. Remove the concrete base upon which the UST rested and export concrete off -site. 3. Excavate approximately ten cubic yards of apparent diesel -contaminated soil based upon the sample result and location within the area. 4. Stockpile contaminated soil on -site and cover with visqueen for subsequent loading. 5. Collect confirmatory soil samples to ensure that the site is devoid of contamination. If confirmatory soil samples do not meet the DEH threshold level for residual contamination, excavate additional diesel -contaminated soil and resample area for further confirmation. Please note that the excavation area will be fenced off and protected from public per county -approved traffic permit requirements. 6. Backfill and compact the excavated area with existing clean soil as deemed fit and/or % rock fill material. 7. Haul and dispose of the excavated soil to the appropriate landfill. 8. Prepare a site closure report documenting all field activities and laboratory analyses. 9. Request a Site Closure Status from the DEH. PROPOSED SCOPE OF SERVICES To meet the objectives, RORE will execute the following tasks: Task 1-Project Management, including Meetings with Client Project Management includes two meetings with the client, one meeting with DEH, regular communication with client and sub -contractor, subcontractor management, schedule and coordination with contractor and client, project quality and cost control monitoring, and cost review and invoice generation. 2 The lump sum cost for project management, including labor, materials, travel, and expendables, is $1,990. Task 2-Site-Specific Health & Safety Plan and Work Plan to Excavate Soil RORE will prepare a Site -Specific Health & Safety Plan and a Work Plan to remove the contaminated soil as required by DEH. These plans will be prepared according to DEH Site Assessment and Mitigation (SAM) guidelines (2005) and submitted to DEH for approval prior to field activities. A Health and Safety Plan for field activity and field personnel at the site will be prepared. The plan will include potential physical and chemical hazards that may impact personnel during excavating, sampling, and hauling activities. The plan will also include appropriate protective equipment and emergency response procedures for the anticipated site -specific hazards. The Work Plan will summarize the specific tasks designed to achieve the objectives and will describe field activities, methodologies for sample collection, laboratory analyses required to test soil samples for contamination and for disposal at a landfill. The lump sum cost for preparing the Plans, including labor, materials, travel, and expendables, is $2,750. Task 3-Excavation and Removal of Contaminated Soil Underground Service Alert will be notified as required by State law so that all public utilities are identified and marked. Safety barricades around the excavation site and a chain -link fence and storm water control measures will be implemented. The asphalt surface material will then be saw cut, demoed, and removed. A subcontractor, ACE Excavating and Environmental Services, Inc. will be used for these required services. It is estimated that 10 cubic yards of contaminated soil will be excavated. Excavated soil will be stockpiled and left inside the Police Department (just south of the wall) for no more than 72 hours, pending laboratory data. The lump sum cost for excavated and removal of contaminated soil, including equipment, labor, travel, and expendables is $9,350. If the excavated volume exceeds 10 cubic yards of soil, then an additional $3,300 may apply. Task 4-Soil Sampling, Testing, and Analyses Soil samples from the excavation site will be collected and submitted to a state -certified analytical mobile laboratory on -site. The reason for the mobile laboratory is so that analysis can be expedited and soil disposed of at the appropriate landfill as soon as possible. The excavation site is part of the public use; therefore any activity that will expedite site closure will minimize impact of potential hazards to the public. Soil samples will be analyzed according to EPA Method 8015 for total petroleum hydrocarbons as diesel (TPH-d). RORE personnel will determine the exact number of samples on -site based upon the contaminated area. A mobile lab can handle up to 16 soil samples in a given day. Cost for a mobile lab is for analysis of up to 16 samples. For a total of sixteen samples, the lump sum cost for soil sampling and mobile laboratory analyses ($1,750) and site supervision for two days by RORE personnel is estimated at $1,850. In addition, RORE will collect representative backfill material and conduct a Standard Proctor Test and verify field compaction. The estimated cost for this activity, which includes labor for sample collection, testing, field observation for two days, is $2,200. Therefore, the lump sum cost for Task 4, including equipment, labor, analyses, and expendables, is $5,800. Task 5-Backfill and Disposal of Excavated Soil The excavated area will be backfilled and compacted with existing clean soil (as deemed fit) and/or % rock fill material. The cost for backfill is included as part of Task 3. The contaminated soil will be characterized and subsequently disposed off -site at a state - approved waste disposal landfill facility, depending upon soil sampling data. Based upon the estimate of 10 cubic yards of soil and landfill, the overall disposal cost could range between $1,500 and $3,000. Task 6-Site Closure Report RORE will prepare a detailed report that documents the field activities, soil sampling data, UST removal and disposal, and conclusions and recommendations for the work elements. The report will include site identification, site plan, sampling procedures, laboratory analytic reports, field work summary, waste manifests, conclusions and recommendations, and figures detailing UST site and soil sample locations. The estimated lump sum cost to prepare and submit two copies of the report, including labor, materials, and copying costs is $2,500. PROJECT ASSUMPTIONS 1. All corrective action measures will follow the corrective action procedures, guidelines, and engineering controls described in the County of San Diego SAM Manual. 2. The Underground Storage Tank Unauthorized Release Report was submitted to DEH by the Client, as requested by DEH. 3. Excavation conditions are normal. If excessive rock, concrete and/or rebar, sub flooring or foundations, high water table, perched water and/or free product, unknown 4 utility lines, structural footings, or caving of side walls are encountered, then additional costs may apply. 4. Following excavation removal, the area needs to be resurfaced with landscaping. 5. Soil sampling can be done in the excavations by sloping the sides back. 6. Excavated soil will be stockpiled on -site for no more than 72 hours, or until the soil analysis results are obtained, whichever is faster. 7. Work will be performed during normal business days and hours; additional charges may apply for work on weekends and holidays. 8. One copy of the final report will be submitted to the Client and one copy to the DEH. 9. This cost proposal includes no more than two meetings with client; each meeting is scheduled to last one hour. PROJECT SCHEDULE AND COST SUMMARY TASK NUMBER ACTIVITY TIME FOR COMPLETION ESTIMATED COST (8) 1 Project Management N/A 1,990 2 Site -Specific Health & Safety Plan, 2 weeks 2,750 3 Excavation and Removal of 1-2 days 9,350* 4 Soil Sampling, Testing, Analyses, 2-3 days 5,800 5 Disposal 1-2 days 1,500** 6 Site Closure Report 2 weeks 2,500 TOTAL 23,890 * Estimate bas d 1 e upon vo ume of 10 cubic yards of excavation and removal ** Estimate based upon using San Diego landfill as the disposal site for contaminated soil If you have any questions regarding this proposal, please contact me at 858-483-8625, ext. 12. We look forward to hear from you, and we look forward to get this project site closed! As always, thanks so much! Sincerely, Gita Murthy, Ph.D. Project Director ENVIRONMENTAL SCIENCE & ENGINEERING 1640 Collingwood Drive • San Diego, California 92109.2239 • 858.483.8625 • Fax 858.483.4583 • www.roreinc.com RORE, Inc. is a woman -owned emerging small business specializing in environmental science and engineering. Based in San Diego, CA, RORE is dedicated to providing outstanding customer service and quality in areas related to environmental engineering, assessment, restoration, hazardous and solid waste management, asbestos and lead -based paint assessments, innovative remediation technologies, health and safety, ergonomics, program management, construction management, and public outreach. RORE helps government and private sector clients achieve their goals and comply with environmental regulations by investigating, managing, mitigating, and resolving their environmental concerns. RORE personnel include qualified and experienced engineers, geologists, chemists, biologists, toxicologists, and risk assessors. These personnel are highly qualified to perform site assessments, feasibility studies, regulatory compliance, soil and groundwater remediation, hazardous waste management, health and safety training, and ergonomics training and workstation evaluations. RORE provides comprehensive environmental consulting to private and public sector clients. Services include site assessments, investigations, feasibility studies, and pilot tests, design of remediation systems, construction, operation and maintenance through case closure, and options for innovative and cost-effective remedial solutions. Other related services include: • Geotechnical and foundation engineering services • Civil and structural design and construction management • Underground storage tank (UST) testing and removal • Compliance of UST installation, operation and maintenance • Ground water resource studies • Asbestos and Lead -based paint Assessment • RCRA-permitting and Compliance -related work • Brownfields-related studies RORE has provided services all across the State of California ranging from Crescent City to National City. Our service areas can extend out to Nevada and Arizona as well! City of National City, California COUNCIL AGENDA STATEMENT .MEETING DATE November 15, 2005 AGENDA ITEM NO. 1-ITEM TITLE Resolution allocating $91,360 from the Non -Departmental Provision for Contingency to AccourN o. Ot-40T710, to Account No. 196-409-500-598-1156, and awarding a contract to RORE Environmental Science & Engineering in the amount of $174,460 for the removal of four underground storage tanks, to conduct a subsurface site assessment, and to implement remediation per requirements of the County of San Diego Department of Environmental Health at the Public Works Yard located at 2100 Hoover Avenue. PREPARED BY Stephen Kirkpatrick DEPARTMENT Engineering EXT. 4380 EXPLANATION See attached Explanation. ( Environmental Review X N/A MIS Approval Financial Statement Approved By: 11/Z-e- $83,100 is available in account number 196-409-500-598-1156. Finan erector It is recommended that $91,360 be transferred to this account from the Non-Depa mental Provision for Contingency. Account No. STAFF RECOMMENDATION Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) 1. Resolution 2. Public Work Yard Summary Resolution No. 3. RORE Contract A-200 (Rev. 7/03) EXPLANATION There have been a total of six underground petroleum product tanks at the Public Works Yard located at 2100 Hoover Avenue. Recently, a 15,000-gallon gasoline tank and a 5,000-gallon diesel tank were removed. The other four tanks were abandoned in place in 1989. Over the years, the County of San Diego Department of Environmental Health (County DEH) has required that the City conduct routine soil sampling and testing at the site. Attached is summary of the site dating back to 1986. This site has been an issue for the City and County DEH for many years. Ultimately this site must be "closed" as defined by the County DEH. It is recommended that this be accomplished now in order to prevent further County DEH enforcement action (monetary penalties). The contract being considered with RORE will accomplish this purpose. It is important to note that the Community Development Commission is considering this site for re- development. The remediation plan proposed and implemented will consider the possible re- development and ensure that the remediation is appropriate for the ultimate purpose. It is likely that the remediation proposed for a housing development will be different from the remediation necessary to operate an asphalt -paved Public Works Yard. Consequently to the extent feasible the City will work with the Community Development Commission to recuperate remediation costs as appropriate. RORE Environmental Science & Engineering was selected by the Community Development Commission through the Request for Qualification process appropriate for selecting a professional service. City staff is "piggy -backing" on that selection process and recommending that the contract be awarded to RORE based upon their qualifications. RESOLUTION NO. 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AWARDING A CONTRACT TO RORE ENVIRONMENTAL SCIENCE AND ENGINEERING, INC. IN THE AMOUNT OF $174,460 FOR THE REMOVAL OF FOUR UNDERGROUND STORAGE TANKS, TO PREPARE A SUBSURFACE SITE ASSESSMENT, AND IMPLEMENT REMEDIATION PER REQUIREMENTS OF THE COUNTY OF SAN DIEGO DEPARTMENT OF ENVIRONMENTAL HEALTH AT THE PUBLIC WORKS YARD LOCATED AT 2100 HOOVER AVENUE, AND ALLOCATING $91,360 FROM THE NON -DEPARTMENTAL PROVISION FOR CONTINGENCY FUND BALANCE, ACCOUNT NO. 001-409-710, TO ENGINEERING'S UPGRADE/REMOVAL FUEL TANKS POLICE DEPARTMENT AND PUBLIC WORKS YARD ACCOUNT NO. 196-409-500-598-1156 WHEREAS, there have been a total of six underground petroleum product tanks at the Public Works yard located at 2100 Hoover Avenue. Two tanks were recently removed and the remaining four tanks were abandoned in 1989; and WHEREAS, periodically, the County of San Diego Department of Environmental Health (DEH) requires the City to conduct routine soil sampling and testing at the site, but ultimately, this site must be closed as defined by the County DEH, which requires the removal of the four remaining underground storage tanks, a subsurface site assessment, and implementation of remediation; and WHEREAS, the Community Development Commission of the City of National City (CDC) is evaluating this site for redevelopment. The remediation plan proposed will consider the possible redevelopment and ensure that the remediation is appropriate for the ultimate use; and WHEREAS, through the Request for Qualification process, the Community Development Commission of the City of National City (CDC) has contracted with RORE Environmental Science and Engineering, Inc. for on -call environmental consulting services; and WHEREAS, staff desires to piggy -back on CDC's selection process and award the contract for removal of four underground storage tanks, to conduct a subsurface site assessment, and •to implement remediation per requirements of the County DEH to RORE Environmental Science and Engineering, Inc.; and WHEREAS, pursuant to Section 12.60.220(D) of the National City Municipal Code, the Purchasing Agent may dispense with the requirements of the bidding process when the City Council determines that due to special circumstances, it is to the City's best interest to purchase a commodity or enter into a contract without compliance with the bidding procedure; and WHEREAS, a reallocation of $91,360 from the Non -Departmental Provision for Contingency Fund Balance, Account No. 001-409-710, to Engineering's Upgrade/Removal Fuel Tanks Police Department and Public Works Yard Account No. 196-409-500-598-1156, is necessary to fully fund the contract with ROBE Environmental Science and Engineering, Inc. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby finds that special circumstances exist and awards the contract for removal of four underground storage tanks at the Public Works Yard, to conduct a subsurface site assessment, and to implement remediation per requirements of the County DEH to: Resolution No. 2005 — November 15, 2005 Page 2 RORE ENVIRONMENTAL SCIENCE AND ENGINEERING, 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 RORE Environmental Science and Engineering, Inc. and the City of National City for removal of four underground storage tanks, to conduct a subsurface site assessment, and to implement remediation at the Public Works Yard located at 2100 Hoover Avenue per requirements of the County DEH. Said contract is on file in the office of the City Clerk. BE IT FURTHER RESOLVED, that the City Council of the City of National City hereby authorizes the following reallocation of funds: $91,360 FROM: Account No. 001-409-710 (Non -Departmental Provision for Contingency Fund Balance) $2,900 TO: Account No. 196-409-500-598-1156 (Upgrade/Removal Fuel Tanks Police Department and Public Works Yard) PURPOSE: To fully fund a contract with RORE Environmental Science and Engineering, Inc. for removal of four underground storage tanks, to conduct a subsurface site assessment, and to implement remediation at the Public Works Yard located at 2100 Hoover Avenue. PASSED and ADOPTED this 15th day of November, 2005. Nick Inzunza, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney 2100 HOOVER AVENUE, NATIONAL CITY, SITE SUMMARY RORE, Inc. October 20, 2005 Property Owner: City of National City, CA 92121 DEH Case#: H05081-001 The site is located on the northwest corner of 22nd Street and Hoover Avenue at 2100 Hoover Avenue, National City. The site is currently occupied by the City of National City Public Works Yard. Based on the file review, the site was reported to have six USTs that are owned by the City of National City with the following capacities, contents, and status (see Table below): UST Depth below grade to Bottom Status 1 10,000 gal -regular gasoline 13'4" Closed -in -Place, 2/16/89 2 3,000 gal diesel 11'11" Closed -in -Place, 2/16/89 3 3,000 gal ethyl gasoline 11' 11" Closed -in -Place, 2/16/89 4 550 Gal motor oil 7'0" Closed -in -Place, 2/16/89 5 15,000 gal -regular gasoline 12' Excavated, 7/27/05 6 5,000 gal diesel 12' Excavated, 7/27/05 On December 30 1986, Woodward -Clyde (WCC) advanced a soil boring in the soil adjacent to the 3,000 gal ethyl gasoline UST. The soil sample (NAPW-B1-7-7.5') contained petroleum hydrocarbons with concentrations of benzene at 1.1 mg/kg, ethylbenzene 0.9 mg/kg, and xylenes 5.5 mg/kg. WCC estimated the gasoline concentration at 12 mg/kg by summing the concentrations of all gasoline constituents. The water sample also contained benzene at 3.8 mg/L, toluene at 0.2 mg/L, and xylene at 0.6 mg/L. On January 23 1987, the DEH issued an unauthorized release letter for the site. On May 4, 1987, three monitoring wells MW-1 through MW-3 (depth 20' bgs, screen 5- 15' bgs) were installed by WCC (See Table 1 and Table 2 for soil and groundwater data). The three monitoring wells were monitored and sampled 14 times starting on May 15, 1987 by various consultants. The latest event was completed on March 14, 2005. The. groundwater monitoring results are summarized in Table 2. RORE, Inc. 1 On February 16, 1989, four USTs (see Table above) were abandoned, slurry -filled, and closed -in -place on -site under DEH directive. Additional soil borings were explored at the site. On October 20, 2000, soil borings (D- S/21/2 and D-N 2/1/2) were advanced near the dispenser island, on October, 27, 2003 soil borings (B-1 and B-2) near the proposed building, and on November 22, 2004 monitoring well MW-4 depth 15'bgs, screen 4.5'14.5'bgs) near the creek. Soil analysis results are presented in Table 1. On July 27, 2005, during the removal of two UST tanks and associated piping, diesel and motor oil -contaminated soil were reported in several locations along the piping trench and the tank pits. Results are included in Figure 2. Based on the historical data, groundwater, underneath the site near the closed -in -place UST locations, contains BTEX and MTBE. The extent of the contaminated soil and dissolved plume are not well defined on east, southeast, south, and southwest directions. Therefore, we recommended the following plan of action to get the site closed under DEH's oversight: 1. Excavation of the four closed -in -place slurry filled USTs and over -excavation of the contaminated soil during tank removal. These four USTs have remained the source of contamination for the site for the last 18 years. It is a cost-effective and time -saving solution to dispose the tanks off -site and permanently remove the source of contamination, The duration of these activities would be around two to three weeks. 2. Abandonment of the three existing monitoring wells MW-1 through 3. The three wells may not be saved due to the tank excavation activities. The extent of the contamination needs to be redefined after the tanks and contaminated soil have been removed. The duration of these activities would be around two to three days. 3. Installation of approximately three to five new monitoring wells to define the petroleum hydrocarbons plume. The duration of these activities would be around three to five days. 4. Perform groundwater sampling activities for two to four quarters to monitor the groundwater quality underneath site. 5. Perform the groundwater flow study and tidal influence study, if needed. The duration of these activities would be around five days. RORE, Inc. 2 TABLE 1 SUMMARY OF SOIL ANALYSIS RESULTS Sample NCPW-131-7-7'6" MW-1 MW-2 MW-3 Date TPH-g TPH-d Benzene Toluene Ethyl- Xylenes MTBE TBA DIPE ETBE TAME Sampling benzene (mg/kg) (mg/kg) (mg/kg) (mg/kg) (mg/kg) (mg/kg) (mg/kg) (mg/kg) (mg/kg) (mg/kg) (mg/kg) 1/14/87 12.0 1.1 4.5 FEET 05/04/87 2.9 6.0 FEET 05/04/87 19.7 0.9 5.5 <0.5 <0.5 <0.5 <0.5 <0.5 <0.5 6.5 FEET 05/04/87 78.0 28.5 0.5 7.5 FEET 05/04/87 744.0 286.0 15.1 5.0 FEET 05/04/87 4.6 <0.5 8.0 FEET 05/04/87 206.0 <0.5 B1-3(5-6') 10/27/03 <10 <10 81-4(10-11') 10/27/03 <10 16 B1-5(15-16') 10/27/03 <10 230 D-S/2 1/2 D-N/2 1/2 MW-4 PQL PRG SSL Notes: 10/20/00 <10 <10 10/20/00 <10 59 <0.5 <0.5 28.5 826.0 <0.5 <0.5 4.5 Feet 11/22/04 <10 <10 6.5 Feet 11/22/04 <10 <10 <5 <5 <5 <15 <5 <25 <5 <5 <5 8.5 Feet 11/22/04 <10 <10 10.5 Feet 11/22/04 <10 <10 12.5 Feet 11/22/04 NA NA 14 Feet 11/22/04 NA NA ND: Not detected NA: Not available 1.0 10.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 NA NA 0.7 520.0 230.0 210.0 17.0 NA NA NA NA 100.0 1000.0 NA NA NA NA NA NA NA NA NA ROBE, Inc. TABLE 2 SUMMARY OF GROUNDWATER LEVELS AND CHEMICAL ANALYSIS RESULTS Depth to Ground - Date Case Ground- LPH water Change in TPH-g TPH-d Benzene Toluene Ethyl Xylenes MTBE TBA DIPS ETBE TAME Sampled Elevation Thickness Elevation benzene water Elevation (feet) (feet) (feet) (feet) (feet) (ug/L) (ug/L) (ue/L) (ug/L) (ug/L) (uQ/L) (uz/Ll (ue/Ll (uz/L) (ue/L1 (ue/L) MVV-1 (Screen Interval in feet: 5-20) 5/15/87 10 6.30 0.00 3.70 NA 8,900 NA 2,193 486.20 50 1,466.40 NA NA NA NA NA 1/11/89 10 6.8 3.20 NA 4,000 NA 2,700 <100 180 1,000 NA NA NA NA NA 9/18/89 10 7 3.00 NA 290 NA 61 2.60 NA 12.20 NA NA NA NA NA 1/10/90 10 5 5.00 75 10.00 4.4 20 4/9/90 10 6.67 3.33 <12 <12 <12 490 10/3/90 10 6.36 3.64 1,400 130 37 560 4/4/91 10 6.89 3.11 150 5 11 49 6/26/91 10 6.12 3.88 7,300 730 530 4,100 1/31/92 10 6.67 3.33 2,800 71 260 1,100 1/19/93 10 6.98 3.02 330 5.6 35 55 10/12/98 10 6.3 3.70 1,010 2,540 <125 207 <250 502.0 9/6/00 10 6.2 3.80 1,900 720 <40 110 <40 330.0 <100 <40 <40 <40 12/14/04 7.987 7.19 0.797 6,200 <500 3,800 16.00 560 69.00 340.0 <I <1 <1 <5 3/14/05 7.987 5.29 2.697 2,600 <500 3,600 13.00 250 34.50 400.0 <I <1 <1 <5 MW-2 (Screen Interval in feet: 5-20) 5/15/87 10.01 6.21 0.00 3.80 NA 730 NA 125.9 179.5 10.6 77.9 NA NA NA NA NA 1/11/89 10.01 7.2 2.81 NA 3000 NA 550 330 77 430 NA NA NA NA NA 9/18/89 10.01 7 3.01 NA 4400 NA 550 850 NA 420 NA NA NA NA NA 1/10/90 10.01 7 3.01 1,100 1,100 92 500 04/90/90 10.01 6.87 3.14 4,000 4,600 480 2,700 10/3/90 10.01 6.41 3.60 640 570 69 380 4/4/91 10.01 6.96 3.05 590 410 59 290 6/26/91 10.01 6.26 3.75 4,500 4,000 620 3,600 1/31/92 10.01 6.83 3.18 5,300 3,700 480 2,500 1/19/93 10.01 NM NM NS NS NS NS 10/12/98 10.01 6.85 3.16 <100 15 <2.5 <2.5 <2.5 91.1 9/6/00 10.01 6.78 3.23 <500 48 <2 11.00 2..8 51.0 <10 <2 <2 <2 12/14/04 7.995 7.07 0.925 <500 <500 <0.5 0.60 1.10 <1.5 33.0 <1 <I <1 <5 3/14/05 7.995 6.17 1.825 <500 <500 56 <0.5 19.00 3 46.0 <1 <1 <I <5 T P w TABLE 2 SUMMARY OF GROUNDWATER LEVELS AND CHEMICAL ANALYSIS RESULTS Date Case Depth to LPH Ground- Ground- Change in _ Sampled Elevation Thickness Water Elevation TPH-g TPH-d Benzene Toluene Ethyl Xylenes MTBE TBA DIPS ETBE TAME water Elevation benzene (feet) (feet) (feet) (feet) (feet) (ue/Ll (ue/L) (u2/L) (ue/L) (ue/L1 (ua/L) (ue/L' (ue/1.1 (u2/1..) (ue/Ll (ue/L) MW-3 (Screen Interval in feet: 5-20) 5/15/87 10.23 4.33 0.00 5.90 NA <100 NA <5 1.60 <5 <5 <1 NA NA NA NA 1/11/89 10.23 5.8 4.43 NA NA NA <2.5 <2.5 <2.5 5.00 <1 NA NA NA NA 9/18/89 10.23 6 4.23 NA <500 NA <0.50 3.9 NA <0.5 <1 NA NA NA NA 1/10/90 10.23 6.5 3.73 <0.5 <0.5 <0.5 <1 <I 4/9/90 10.23 5.34 4.89 <0.5 <0.5 <0.5 <1 <1 10/3/90 10.23 5.64 4.59 <0.5 <0.5 <0.5 <1 <1 4/4/91 10.23 5.65 4.58 <0.5 <0.5 <0.5 <I <1 6/26/91 10.23 5.19 5.04 <0.5 <0.5 <0.5 <1 <1 1/31/92 10.23 6 4.23 <0.5 <0.5 <0.5 <0.5 <1 1/19/93 10.23 5.52 4.71 ND ND ND ND <1 10/12/98 10.23 5.66 4.57 <100 <0.5 <0.5 <0.5 <1.0 <1 9/6,'00 10.23 5.04 5.19 <500 <2 <2 <2 <2 <6 <10 <2 <2 <2 12/14/04 8.272 5.58 2.69 <500 <500 0.80 0.70 <0.5 <1.5 <1 <1 <1 .<I <5 3/14/05 8.272 3.98 4.29 <500 <500 <0.5 <00.5 <0.5 <1.5 <1 <1 <1 <1 <5 MW-4 (Screen Interval in feet: 4.5-14.5) 12/14/04 7.016 5.03 1.99 <500 <500 <0.5 0.80 <0.5 <1.5 <1 <1 <I <I <5 3/14/05 7.016 4.6 2.42 <500 <500 <0.5 <0.5 <0.5 <1.5 <1 <1 <1 <I <5 PQL NA NA NA NA NA 1,000 1,000 5 5 5 5 5.0 20 5 5 5 CA MCL NA NA NA NA NA NA NA 1 150 300 1,750 13.0 NA NA NA NA LA AL/Taste & Odor Threshold NA NA NA NA NA 5 100 0 42 29 17 13.0 NA NA NA NA Notes: ND: Not detected NA: Not analyzed RORE, Inc. AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND RORE Environmental Science & Engineering THIS AGREEMENT is entered into this 15 day of November, 2005, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and Rore Environmental Science & Engineering, a private company (the "CONTRACTOR"). RECITALS WHEREAS, the CITY desires to employ a CONTRACTOR to remove four underground storage tanks, and to conduct a subsurface site assessment per requirements of the County of San Diego Department of Environmental Health at 2100 Hoover Avenue, Citv of National City (DEH File No. H05081-001). WHEREAS, the CITY has determined that the CONTRACTOR is a Environmental Science & Engineering Company 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. Steve Kirkpatrick 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. Gita Murthy 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 "A " (the Base amount) without prior written authorization from the Proiect 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. Completion dates or time durations for specific portions of the Project are set forth in Exhibit " A ". 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 CONTRACTOR'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 Toss 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. I solelyto this Agree - Insurance Any aggregate insurance limits must apply g 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. ment. 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: Steve Kirkpatrick, City Engineer City of National City 1243 National City Boulevard National City, CA 91950-4301 To the CONTRACTOR: Gita Murthv, Ph.D Rore Environmental Science & Engineering 1640 Collingwood Drive San Diego, CA 92109-2239 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. 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 TY for all damages, costs or expenses the CITY may sshall ufferby virtuet of any ly Iviolation of e to the It s Paragraph 21 b the CONTRACTOR.Y 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. 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 Califomia. I • Entire Agreement. This Agreement supersedesany 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 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. 9 Revised April 2005 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 Rore Environmental Science & Engineering (Corporation — signatures of two corporate officers) (Partnership — one signature) (Sole proprietorship — one signature) By: By: � L. Nick Inzunza,.Mayor (Name) APPROVED AS TO FORM: By: George H. Eiser, III City Attorney GGu (Title) (Name) G F 0 / (Title) ENVIRONMENTAL SCIENCE & ENGINEERING 1640 Collingwood Drive • San Diego. California 92109-2239 • 858.483.8625 • Fax 858.483.4583 • www.roreine.com October 27, 2005 Mr. Stephen Kirkpatrick City Engineer City of National City, Engineering Department 1243 National City Blvd. National City, CA 91950-4301 RE: Proposal to Remove Four Underground Storage Tanks, and to Conduct a Subsurface Site Assessment Per Requirements of the County of San Diego Department of Environmental Health at 2100 Hoover Avenue, City of National City (DEH Case No. H05081-001) Dear Mr. Kirkpatrick: Per your request, RORE is pleased to submit the scope of work and cost proposal to remove the abandoned underground storage tanks (USTs) and to perform site assessment at the above -referenced site. The following proposal is based upon our discussions with Mr. Jim Schuck at the Department of Environmental Health (DEH) on October 20, 2005, and his letter to the City of National City Public Works Department dated July 14, 2005. The immediate goal for the City of National City is to provide to DEH a response to each of the bullets listed in its July 14, 2005 letter. The six bullet requests are as follows: 1. Electronically submit environmental information into the State's Geotracker system in accordance with the electronic reporting requirements (Chapter 30, Division 3, of Title 23 & Division 3 of Title 27, CCR). RORE has verified that this task has already been completed. 2. Please review the property APNs identified on Page 3 of the Report to verify the accuracy of the numbers. This task was completed by the Department of Engineering, City of National City. Page 1 of 10 3. As recommended in the Report, implement a groundwater elevation study to accurately determine the flow of groundwater in the vicinity of the release. Because the existing monitoring wells are to be decommissioned during the time of UST removal, this task is not relevant. However, at the time when additional monitoring wells are installed, then this task will be completed. DEH recognizes and concurs with RORE. 4. Provide a characterization of the ground and surface water resources in the vicinity of the property to determine current or anticipated beneficial uses thereof. RORE will complete this task, and include the characterization in the work plan that it submits to DEH. 5. Provide the status to the planned removal of the existing six (6) USTs and associated piping in the vicinity of the release. Upon completion of the work executed under this proposal, this task will be detailed in the report that RORE submits to DEH. 6. Submit a revised site assessment report which provides the applicable information above and which incorporates all historical environmental information obtained at the property since December 1986. Per DEH, RORE was instructed to submit a site assessment report, which includes all relevant environmental information pertaining to the project site. RORE has already completed a historical database review; it was necessary for RORE to complete this review prior to meeting with DEH on October 20, 2005. BACKGROUND The site is located at 2100 Hoover Avenue, City of National City. It is currently occupied by the City of National City's Public Works Yard. Based upon review of previous reports, the site is reported to have four concrete slurry - filled USTs that were closed -in -place in 1989. The four tanks were used to store gasoline, diesel fuel, motor oil, waste oil, and lubricating oil (Woodward -Clyde, August 1987). The site also contained two USTs that were removed on July 27, 2005. Specifications for each UST and a case history of the site are as follows: 2 of 10 Tank UST Depth from Surface to Bottom of Tank Status 1 10,000-gal-regular gasoline 13'4" Closed -in -Place, 2/16/89 2 3,000-gal diesel 11'11" Closed -in -Place, 2/16/89 3 3,000-gal ethyl gasoline 11'11" Closed -in -Place, 2/16/89 4 550-gal motor oil 7'0" Closed -in -Place, 2/16/89 5 15,000-gal-regular gasoline 12' Removed, 7/27/05 6 5,000-gal diesel 12' Removed, 7/27/05 On December 30, 1986, Woodward -Clyde (WCC) advanced a soil boring adjacent to the 3,000-gal ethyl gasoline UST. The soil sample (NAPW-B1-7-7.5') contained petroleum hydrocarbon compounds with concentrations of benzene at 1.1 mg/kg, ethylbenzene 0.9 mg/kg, and xylenes 5.5 mg/kg (WCC, August 1987). WCC estimated the gasoline concentration at 12 mg/kg by summing the concentrations of all gasoline constituents. The water sample also contained benzene at 3.8 mg/L, toluene at 0.2 mg/L, and xylene at 0.6 mg/L. On January 23, 1987, the DEH issued an unauthorized release letter for the site, and a case number was established. On May 4, 1987, three monitoring wells MW-1 through MW-3 (depth 20' bgs, screen 5- 15' bgs) were installed by WCC. The three monitoring wells were monitored and sampled 14 times starting on May 15, 1987 by various consultants. The latest event was completed on March 14, 2005. The groundwater monitoring results indicated that dissolved petroleum hydrocarbon is currently present in the groundwater (Various Reports). On February 16, 1989, four USTs (see Table above) were abandoned, slurry -filled, and closed -in -place on -site under DEH directive. On October 20, 2000, additional soil borings were explored at the site. Soil borings (D- S/21/2 and D-N 2/1/2) were advanced near the fuel dispensing island. On October 27, 2003, soil borings (B-1 and B-2) were advanced near the "proposed building," and on November 22, 2004, a fourth monitoring well (MW-4 depth 15'bgs, screen 4.5'14.5'bgs) was advanced near the creek. On July 27, 2005, during the removal of two UST tanks and associated piping, diesel and motor oil -contaminated soil were reported in several locations along the piping trench and the tank pits. On October 20, 2005, following review of the historical background information and data related to the project site, RORE participated in a meeting with DEH's project manager assigned to this case. At the meeting, DEH and RORE clearly identified the objectives of additional investigation with the goal of obtaining site closure status. 3 of 10 OBJECTIVES RORE's objectives are to: 1. Submit work plan; UST and existing monitoring wells removal permits, and obtain approval from DEH 2. Decommission three existing monitoring wells 3. Remove four slurry -filled USTs and associated piping 4. Excavate visibly -contaminated soil as necessary 5. Pump and temporarily store groundwater on -site 6. Take confirmatory samples at different depths and locations depending on the soil appearance on the day of the UST pull. 7. Stockpile and dispose soil to the appropriate landfill. 8. Complete a site assessment for areas around the four removed USTs, and around the USTs that were removed on July 27, 2005. 9. Prepare and submit a site assessment report to DEH. 10. Meet with DEH to discuss data, extent of residual contamination, if any, and plan for additional monitoring well installation. PROPOSED SCOPE OF SERVICES To meet the objectives listed above, RORE will perform the following tasks for the Public Works Yard project site: Task 1—File Review As requested by DEH, RORE reviewed the DEH files and other files related to the project site for release and contamination, other site assessment activities, and environmental issues related to the site. In the files, there was mention of a 'PCB boring,' which demonstrated PCB contamination (Geological Exploration Inc., December 1990), and a 2003 Geocon report documenting contamination (Geocon, October 2003). Because there were no further references or details about these findings, DEH instructed RORE to do more research or to contact these previous firms to clarify these mentioned contaminants. The lump sum estimate to execute Task 1, including labor, materials, travel, file -copying, and data interpretation to create summary is $1,645. Task 2—Community Health & Safety Plan, Site -Specific Health & Safety Plan, and Work Plan to Remove Four USTs and to Decommission Three Monitoring Wells RORE will prepare a Community Health & Safety Plan, Site -Specific Health & Safety Plan, and a Work Plan to remove the USTs and to decommission the monitoring wells that are in place. These plans will be prepared according to DEH Site Assessment and Mitigation (SAM) guidelines (2005) and submitted to the DEH for approval. 4 of 10 A health and safety plan for field personnel at the site will be prepared. The plan will include potential physical and chemical hazards that may be encountered by personnel during drilling, excavating, and sampling activities. The plan will also include appropriate protective equipment, air monitoring devices, and emergency response procedures for the anticipated site -specific hazards. A community health and safety plan that reflects the City's planned site clean-up activities will also be prepared and be housed at the public library in the City of National City under the community right -to -know act. The work plan will summarize the specific tasks designed to achieve the objectives and will describe field activities, methodologies for sample collection, various laboratory analyses required to test groundwater and soil samples. This work plan will also include a site plan illustrating current UST and monitoring well locations. This work plan will be submitted for approval, to Jim Schuck at DEH, prior to commencement of any field activity. The lump sum cost for preparing the Plans, including labor, materials, and expendables is $3,300. Task 3-Preparation for the UST Removal, Four UST Removal, Contaminated Soil and Groundwater Removal Construction activities at the project site will occur in two phases: Phase one will include tank removal. Phase two will include soil excavation and trenching and disposal of contaminated soil and water. Phase two will be conducted at the location where four USTs were removed and at the location where two USTs were previously removed on July 27, 2005. To accomplish this task, the following tasks will be performed: • Utility Search and Mark out; • Preparation and submission of all required permit applications pertaining to tank removal from the DEH and the City of National City Fire Department (NCFD); • Notify and coordinate with DEH and NCFD; • Provide safety barricades and chain link fence around excavation; • Sawcut, demo, and removal of asphalt surface over USTs and piping; • Excavate over USTs and piping to prepare for removal; • Remove and dispose USTs and the associated piping; • Trench around the location where UST was removed on 7/27/05; • Trench around the piping area that was removed on 7/27/05; • Backfill and compact the excavated areas with either clean excavated soil and/or with clean imported fill material to make up the void; • Soil compaction testing; • Clean the work site upon UST removal; and • Subcontractor management 5 of 10 RORE will obtain the necessary permits to remove all four USTs and associated piping. Approval of the permits by the DEH is expected to require approximately 10-15 business days. RORE will notify Underground Service Alert to identify potential subsurface utility hazards. UST removal services by the UST removal Contractor will include labor, equipment, and consumables to expose, properly decontaminate, remove all USTs (four slurry -filled), dispose USTs at a State -certified facility, backfill the excavation site, compact soil to 90% grade, and resurface with asphalt. Also, per DEH, a trench around the UST, which was removed on July 27, 2005, and its associated piping area, will be necessary for soil sampling. Trenching around the removed UST will be approximately 2' x 100' x 10'deep and around the removed piping area will be approximately 4' x 130' long x 5' deep. Contaminated groundwater that is encountered during the UST removal activities will be pumped, stored, and disposed of according to SAM guidelines. RORE will collect representative backfill material and conduct a Standard Proctor Test and verify field compaction. The total estimated cost for Task 3 is $109,035. A cost breakdown is included in the Cost Estimate Summary Section. Task 4—Monitoring Well Abandonment Monitoring wells (MW 1, MW2, MW3) need to be abandoned because of their proximity to the UST removal activities and their unusable condition based upon previous reports and discussion with DEH. Please note that per DEH's letter dated July 14, 2005, RORE will not measure water levels during fluctuating tidal conditions because three of the monitoring wells will be decommissioned. This task will be performed at a later date when additional monitoring wells will be installed. There is no cost associated with the water level measurement in this proposal. The estimated cost for permitting, abandoning the monitoring wells, soil sampling, and waste disposal is $5,833. Task 5—Soil Sampling, Testing, and Analyses During over -excavation, soil samples will be analyzed using an on -site mobile laboratory and a stationary laboratory. A mobile lab will be used depending on the sample analysis time requirement and the condition of the visible contamination. 6 of 10 Both mobile and stationary labs are state -certified analytical laboratories. Per DEH, soil samples will be analyzed for full range, extended total petroleum hydrocarbons such as gasoline and diesel (TPH-g, TPH-d) and motor oil, EPA Method 8260B for BTEX and other fuel oxygenates. Currently, 50 samples are estimated to be collected and analyzed. The estimated cost for soil and groundwater analyses, including mobile and stationary laboratories is $12,547. Task 6—UST Closure and Post -UST Removal Assessment Report To satisfy DEH requirements in its letter dated July 14, 2005, RORE will prepare a detailed report that documents the activities, soil sampling data, UST removal and disposal, conclusions and recommendations for additional work elements, if necessary. The report will include site identification, background data, site plan, sampling procedures, laboratory analytic reports, field work summary, waste manifests, conclusions and recommendations, and figures detailing UST site and soil sample locations. The estimated lump sum cost to prepare and submit two copies of the report, including labor, materials, and expendables, is $5,990. Task 7—Project Management, including Meetings with Client and DEH Project Management includes meetings with the client and DEH project manager, regular communications with client and contractor, scheduling and coordination with contractor and client, project quality and cost control monitoring, and cost review and invoice generation. The lump sum cost for project management, including labor, materials, travel, and expendables, is $13,500. PROJECT ASSUMPTIONS 1. All four USTs at the Public Works Yard will be removed. 2. USTs are only filled with clean slurry. 3. Monitoring wells (MW1, MW2, MW3) will be abandoned. 4. Contaminated groundwater will be encountered. 5. Contaminated soil will be non -hazardous, and therefore, will be disposed of at the San Diego landfill. 6. Following tank removal, the area will be resurfaced with asphalt. 7. Amount of excavated soil will be about 140 tons (200 cubic yards) or less. 8. Work will be performed during normal business days and hours; additional charges may apply for work on weekends and holidays. 9. One copy of the final report will be submitted to the Client and one copy to DEH. 10. This cost proposal includes no more than two meetings with DEH; each meeting is scheduled to last two hours. 7 of 10 PROJECT SCHEDULE Following DEH permit and work plan approval, the estimated time to complete the above tasks is as follows: Task Number Activity Estimated Time to Complete Each Task 1 File Review 3 days; task completed 2 Community Health & Safety Plan, Site Specific Health & Safety Plans, Work Plan, 2 weeks 3,4,5 Monitoring Well Abandonment, UST Removal, Backfill and compaction, Soil 2 weeks 6 Report Preparation, Submission 3 weeks 8 of 10 COST ESTIMATE SUMMARY I. REQUIRED ITEMS Task Number Activity RORE Estimated Cost (g) 1 File Review 1,645 2 Community and Site -Specific Health & Safety Plans, Work Plan 3,300 3 UST Removal (4 USTs, piping) 41,000 Contaminated Soil Excavation 21,725 Fill material ($29/ton x 140 tons) 4,060 Export, Load non -hazardous contaminated soil to San Diego landfill ($65/ton x 140 tons) 9,100 Trenching around UST removed on 7/27/2005 6,710 Trenching around the piping removed on 7/27/05 7,590 Environmental Technician and truck (12 days) 8,770 Soil com_paction testing and verification 3,000 Site Superintendent (3 days) 2,080 Groundwater purging and disposal 5,000 Sub Total 109,035 4 Monitoring Well Abandonment 4,050 Permitting 383 3 soil samples 600 Waste Disposal (4 drums) for monitoring_wells 800 Sub Total 5,833 5 Mobile & Stationary Laboratory; sample analyses 12,547 6 UST Closure, Post -Assessment Reports 5,990 7 Project Management 13,500 TOTAL 151,850 This estimate is based upon the following assumptions: • At most, 200 cubic yards (140 tons) of contaminated soil will be excavated. • No more than 850 square feet will be resurfaced. • Construction -related tasks will last at least two full weeks. • Mobile laboratory will be required for three days only • RORE staff will be on -site for a total of 12 days. Please note that 80% of the above total is construction and laboratory -related cost. 9 of 10 II. OPTIONAL ITEMS THAT MAY BE NECESSARY IF SITE CONDITIONS WARRANT Task Number Activity RORE Estimated Cost ($) • Export, Load contaminated soil to Copper Mountain, 4,900 AZ ($35/ton x 140 tons). Demo and removal of concrete slabs beneath USTs 4 4,620 Remove and replace storm drain over USTs 4,950 Remove and replace sewer line over USTs 6820 — R Remove and replace water line over USTs 1,320 TOTAL 22,610 RORE is committed to meeting City of National City's needs. Consequently, if your needs change as this project progresses, RORE will be happy to accommodate your changes and modify the proposal accordingly. As in the past, RORE will work diligently with your team, and with the regulators to accomplish your goal of removing the USTs and receiving case closure status from the County of San Diego DEH as soon as possible. If you have any questions regarding this proposal, please contact me at 858-483-8625, ext. 12. We look forward to hear from you, and we look forward to get this project site closed! Thanks so much! Sincerely, cea Gita Murthy, Ph.D. Project Director 10 of 10 ENVIRONMENTAL SCIENCE & ENGINEERING 1640 Collingwood Drive • San Diego, California 92109-2239 • 858.483.8625 • Fax 858.483.4583 • www.roreinc.com RORE, Inc. is a woman -owned emerging small business specializing in environmental science and engineering. Based in San Diego, CA, RORE is dedicated to providing outstanding customer service and quality in areas related to environmental engineering, assessment, restoration, hazardous and solid waste management, asbestos and lead -based paint assessments, innovative remediation technologies, health and safety, ergonomics, program management, construction management, and public outreach. RORE helps government and private sector clients achieve their goals and comply with environmental regulations by investigating, managing, mitigating, and resolving their environmental concerns. RORE personnel include qualified and experienced engineers, geologists, chemists, biologists, toxicologists, and risk assessors. These personnel are highly qualified to perform site assessments, feasibility studies, regulatory compliance, soil and groundwater remediation, hazardous waste management, health and safety training, and ergonomics training and workstation evaluations. RORE provides comprehensive environmental consulting to private and public sector clients. Services include site assessments, investigations, feasibility studies, and pilot tests, design of remediation systems, construction, operation and maintenance through case closure, and options for innovative and cost-effective remedial solutions. Other related services include: • Geotechnical and foundation engineering services • Civil and structural design and construction management • Underground storage tank (UST) testing and removal • Compliance of UST installation, operation and maintenance • Ground water resource studies • Asbestos and Lead -based paint Assessment • RCRA-permitting and Compliance -related work • Brownfields-related studies RORE has provided services all across the State of California ranging from Crescent City to National City. Our service areas can extend out to Nevada and Arizona as well! City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE November 15, 2005 AGENDA ITEM NO. 7 (ITEM TITLE Resolution of the City of National City Approving Change Order Number 15 with Jaynes Corporation in the combined total amount of $168,061 for various necessary design modifications and upgrades to the National City Library; and authorizing the City Engineer to sign the change order. PREPARED BY Stephen Kirkpatrick DEPARTMENT EXPLANATION Engineering EXT. 4383 There are 46 components to change order number 15 totaling $168,061. Each cost has been negotiated with the contractor and represents a cost similar to what would have been received had these items of work had been identified on bid day. For simplicity in reading this report, each change order cover sheet indicating the work, the negotiated cost for the work, and the explanation of why the change is necessary is attached. The documentation supporting the negotiated cost (which is attached to the actual change order) has not been included in this report due to the volume of material. It is available for review at the City Engineer's Office. X Environmental Review N/A MIS Approval Financial Statement Approved By: The cost of change order number 15 is $168,061. Fine Director Funds are budgeted for this change order in the project account numbers 241-409-500-59 -1583 and 242- 409-500-598-1583. Account No. STAFF RECOMMENDATION Adopt the Resolution. BOARD / COMMISSION OMMENDATION N/A L1. Resolution 2. Change Order Number 15 ATTACHMENTS ( Listed Below ) Resolution No. cc15 A-200 (Rev. 7/03) RESOLUTION 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY ENGINEER TO EXECUTE CHANGE ORDER NO. 15 WITH JAYNES CORPORATION IN THE COMBINED TOTAL AMOUNT OF $168,061 FOR VARIOUS NECESSARY DESIGN MODIFICATIONS AND UPGRADES TO THE NATIONAL CITY PUBLIC LIBRARY WHEREAS, the contract for the National City Public Library Project, Specification No. 1028, was awarded to Jaynes Corporation on February 10, 2004, by the adoption of Resolution No. 2004-19; and WHEREAS, during the construction of this project, various necessary design modifications and upgrades were required or requested; and WHEREAS, each cost has been negotiated with the contractor and represents a cost similar to what would have been received had these items of work been identified on bid day. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the City Engineer to execute Change Order No. 15 with Jaynes Corporation in the combined total amount of $168,061 for the necessary design modifications and upgrades that were required or requested for the National City Public Library Project. PASSED and ADOPTED this 15th day of November, 2005. ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney Nick Inzunza, Mayor er CONTRACT CHANGE ORDER TO (Contractor): Jaynes Corporation 111 Elm Street 4" Floor San Diego, California 92101 go Number: C/O Initiation Date: Project: Contract No.: 015 October 10, 2005 National City Public Library 1028 A Change Order is hereby recommended for the following work in the amount identified in this document: DESCRIPTION OF CHANGES: 1. PR #040: West Wall, Additional Braces $ 7,500.00 2. COR #159: Un-detailed Structural Supports for Folding Partitions $ 8,434.00 3. COR #160: Revised Erection Method for Eyebrows Welded/Bolted $ 8,564.00 4. COR #162: Door/Hardware Revisions for SDG&E Electric Room S 4,104.00 5. COR#165: Added Tamper Switch not indicated on Electrical Dwgs $ 4,143.00 6. COR #167:.Re-Worked Local History Room Display Cases and Wall Shelves $ 25,200.00 7. COR #070: Added "Elliptipar" Fixtures in Children's Area $ 1,484.00 8. CCD #010: Change out Specified Solid Surface Counter Tops in Men's Restrooms $ 5,748.00 9. COR #175: Add Computer Room Tops $ 7,044.00 10. ASI #078: Paint Perimeter Soffit around Ellipse Area P-2 S 926.00 11. COR #166: New Counter Top $ 799.00 12. COR #169: Door/Hardware Security Revisions $ 18,467.00 13. CCD #007: Raise Fire Alarm Strobes per Direction of Fire Marshall S 2,107.00 14. CCD #008: Security Door/Hardware and Card Reader Additions $ 540.00 15. ASI #089: Revised Planting per revised Sheets L1.02 and L2.02 $ 4,046.00 16. COR #72RSignature Wall Cap Stone .................... $ 3,000.00 17. COR #92R:Mechanicl Screen Wall Opening Re -Work $ 5,350.00 18. COR #179: Saturday Time for Signature Wall $ 1,270.00 19. COR #180: Electrical Modifications to Furniture $ 1,045.00 20. COR #181: Adjust Chandelier/Bulbs $ 753.00 21. COR #182: TV Cart $ 1,591.00 22. COR #184: Switch Dishwashers to ADA Height $ 906.00 23. COR #185: Room 223/230 Furniture Hook -Up .$ 555.00 24. COR #186: Replace 2 Exit Signs $ 776.00 25. COR #188: Class II under Swale $ 1,684.00 26. COR #189: Demolish Scoreboard $ 647.00 27. COR #198: CAT 6 Cable to book detector $ 758.00 28. COR #199: Add power for copier in Local History $ 1,679.00 29. COR #195: Added screws in armature lights $ 739.00 30. COR #220: Moving signs (on top of book stacks and others) $ 3,837.00 31. COR #201: Room 231 storage to office.... $ 2,137.00 32. COR #191: Relocate Transformers at Media Shelving ...$ 6,019.00 33. COR #210: Dumpsters and labor for hauling out furniture trash $ 3,663.00 34. COR #197: Add 50 Pairs from IDF #2 to MDF ...$ 2,034.00 35. COR #200: Add Voice to Elevator $ 281.00 36. COR #208: Modify Keying for Security ...$ 301.00 37. COR #205: Added Counter Top Supports $ 1,609.00 38. COR #211: Added Fire Extinguisher by Fire Marshall $ 152.00 39. COR #219: Owner Caused Damage/Repairs (Paint, Patch) $ 8,149.00 40. COR #222: Added Tees on Hydronics $ 787.00 41. COR #217: Extend Drywall Per Fire Marshall $ 2,080.00 42. COR #216: Drywall repairs for Children light Revision $ 281.00 43. COR#077: Relocate Local History Room Window .$ 1,527.00 44. COR #055: Additional Control Joints for Exterior Stone 45. COR #164: Landscape Plant Upgrades/Replacement $ 5,300.00 46. COR #168: Replace OPAC Solid Surface Tops at Entry $ 1,585.00 $ 8,460.00 Change Order 015 Page 1 of 8 CONTRACT CHANGE ORDER C/O Number: 015 TO (Contractor): Jaynes Corporation 111 Elm Street 4ih Floor Project: San Diego, California 92101 Contract No.: C/O Initiation Date: October 10, 2005 National City Public Library 1028 REASON FOR CHANGE: Owner Requested and Required Structural, Electrical, Shelving and Architectural Additions, Modifications and Revisions. (See Attached) COST RECONCILIATION: One Hundred Sixty Eight Thousand and Sixty -One Dollars & 00/100: $ 168,061.00 Costs were reviewed by the Construction Manager and the City and negotiated to the satisfaction of the City. The foregoing increase in price is in full settlement of all entitlements directly or indirectly arising out of this change. Construction Contract Accounting Summary: The Original Contract Amount $ 11,476,444.00 Net change by previously authorized Change Orders $ 655,336.00 Revised Contract Amount due to previous Change Orders $ 12,131,780.00 $ 168,061.00 New Revised Contract Amount $ 12,299,841.00 Change in Contract Time: Zero (0) Cale . :t r days Contract Completion Date: May 23, With this Change Order request the Contract amount increases by Recommended,*' Approval by: CO tSfR1JCTION MAN Martin Gab y; Project ana 'Tr b, inc. PROJECT ARCHITECT REPRESENTATIVE Gregory Ny; President (C.A.L) Approved by: CON ACTOR/ Jaynes Corporation Rick Cohen; Senior Vice President OWNER/ City Of National City Steve Kirkpatrick; City Engineer DATE DATE DATE Change Order 015 Page 2 of 8 CONTRACT CHANGE ORDER TO (Contractor): Jaynes Corporation 111 Elm Street 41h Floor San Diego, California 92101 REASON FOR CHANGE: C/O Number: C/O Initiation Date: Project: Contract No.: 015 October 10, 2005 National City Public Library 1028 1. PR #040: West Wall, Additional Braces This added work item was additional structural welding, framing and associated exterior stone removal and repair for added seismic control of the designed "Slip Joint" for the outboard West Wall to be tied into the main building structure. 2. COR #159: Un-detailed Structural Supports for Folding Partitions This proposal request was for the additional cost to furnish and install previously un-detailed structural support steel for the folding partition doors located in the 2nd floor Computer Room. The added support is necessary to properly mount, support and provide the required lateral support of the door support track. 3. COR #160: Revised Erection Method for Eyebrows from Welded to Bolted The added work associated with this proposal was due a design for the window eyebrow/shades. The originally designed bolted connections were determined to inadequate for the load bearing cantilever stresses. The Structural consultant re -designed the eyebrow connections to be revised to a welded connection, better suited for the bearing capacities generated by the weight of the eyebrow. 4. COR #162: Door/Hardware Revisions for SDG&E Electric Room This modification was required due to specific SDG&E inspection/maintenance requirements that were not included in the original plans and documents. 5. COR#165: Added Tamper Switch not indicated on Electrical Dwgs The change was due to an added tamper switch and associated fire alarm module at the 6" Fire Line backflow device at the South end of the parkig lot. These items were required by the Fire Marshall and were not included as part of the original project plans and specifications 6. COR #167: Re -Worked Local History Room Display Cases and Wall Shelves This added work was required as a result of the shelving and casework in the Local History Room were detailed in the project plans containing an inadequate shelve width to accommodate the larger newspaper and artifacts exhibits displayed in this area. 7. COR #070: Added "Elliptipar" Fixtures in Children's Area This change was due to the originally specified Light fixtures came in conflict with HVAC duct work in this area. The new fixtures are a surface mounted fixture so as to be installed to be in the way of the HVAC duct work above the ceiling grid panels. 8. CCD #010: Change out Specified Solid Surface Counter Tops in Men's Restrooms This added work was a change directive to furnish and install re -fabricated solid surface counter tops in two Men's Restrooms. The color indicated on the project plans was for a "Blue" color top The tops had to be re -fabricated in the correct "Green" color for proper coordination with the installed ceramic tile patterns. 9. COR #175: Added Computer Room Counter Tops This change was needed due to the required countertops for the computer equipment along the West wall, were not included the original project plans and details. These tops were essential in providing the program the required number of computer stations. Change Order 015 Page 3 of 8 CONTRACT CHANGE ORDER C/O Number: 015 TO (Contractor): Jaynes Corporation C/O Initiation Date: October 10, 2005 111 Elm Street 401 Floor Project: National City Public Library San Diego, California 92101 Contract No.: 1028 REASON FOR CHANGE (cont'd): 10. ASI #078: Paint Perimeter Soffit around Ellipse Area P-2 This additional work was required to replace wall fabric material that had earlier been deleted from the project. The new painting pattern was required to properly finish off the exposed gypsum wallboard. 11. COR #166: New Counter Top This was an. added surface top in the Janitor's Closet to better accommodate storage needs, requirements and room access by the library and maintenance staff. 12. COR #169: Door/Hardware Security Revisions The door/hardware installation and security coordination/implementation from the original door/hardware/security design did not fully meet the program and the library/City's complete needs. The added work was a result of numerous on -site meeting with CNC, the general contractor and the four subcontractors effected. The resulting added work was not included in the original program, but was essential additions for the overall safety/security of the facility. 13. CCD #007: Raise Fire Alarm Strobes per Direction of Fire Marshall This added work item was a specific request of the CNC Fire Marshall. The strobes that moved were installed, per approved design, at a height that when the book stack shelves were put in place they blocked from sight the already installed fire strobe devices. They were raised to a height visible from the compliant distance. 14. CCD #008: Security Door/Hardware and Card Reader Additions This was an Owner added upgrade of add power supply for three additional door locks not indicated on the original plans to be energized. This was necessary to close the intended security loop in the overall building security system. 15. ASI #089: Revised Planting per revised Sheets L1.02 and L2.02 This modification was generated by the project landscape architect to fill in planting deficiencies in providing adequate plant coverage as indicated within the original project drawings. The need for the additional plant material became evident once plant installation commenced. 16. COR #72R: Signature Wall Cap Stone. This modification was required due to the previously revised stone details did not indicate any stone to be change out at the top of the wall. The added cap stone finished the signature wall with the proper matching cap stone material. 17. Mechanical Screen Wall Opening Re -Work This additional work was required to properly fit the fabricated Exterior door frames to the structural steel screen wall. A conflict on the plans and the approved shop drawings for the framed opening required the rough openings to be modified in order to accept the manufactured door frame. 18. COR #179: Saturday Time for Signature Wall This was overtime work requested by the owner for Saturday work hours on the Signature Stone Wall in order to have all the stone in place and caulking installed and cured in time for the Mayor's planned media unveiling of the new library facility. Change Order 015 Page 4 of 8 CONTRACT CHANGE ORDER C/O Number: 015 TO (Contractor): Jaynes Corporation C/O Initiation Date: October 10, 2005 111 Elm Street 4rh Floor Project: National City Public Library San Diego, California 92101 Contract No.: 1028 REASON FOR CHANGE (cont'd): 19. COR #180: Electrical Modifications to Furniture This proposal request was an owner requested revision to relocate the floor access boxes to the center of the tables rather than over a perimeter leg. This re -location provided for better concealment of the power and data cabling that runs fro the floor boxes and services each area table on the main library floor. 20. COR #181: Adjust Chandelier/Bulbs This proposal request was to provide the owner revised and exacting visual locations for the chandelier components. This adjustment of the chandelier varied from the original plan positioning. The owner also a change of the specified bulb to a more "softer" lighting effect. 21. COR #182: TV Cart This was an owner requested addition for a fabricated mobile cart for the 52" TV in the Children's Meeting Room. This will provide for more flexibility in positioning the TV within the meeting room. The original plans did not provide for this piece of furniture in the general contractor scope of work. 22. COR #184: Switch Dishwashers to ADA Height Upon installing the specified dishwasher, it was discovered that the specified model was not consistent to ADA height requirements. The counters were installed per ADA heights. The specified equipment would not fit under the counter top: The equipment was returned and ADA equipment was delivered and installed with the reflected price increase. 23. COR #185: Room 223/230 Furniture Hook -Up This added scope of work was required because the electrical installation plans indicated that the floor boxes indicated did not provide for data connections. The owner directed the contractor to install boxes that will provide the required power and data to the boxes for furniture termination. 24. COR #186: Replace 2 Exit Signs This change was a result of the architect review that power supplies had not been indicated on the original plans to energize two exit signs. The exit signs are required. The most cost effective approach was to furnish and install two nuclear Type "X5" signs as opposed to running all new conduit and wire to each sign location. 25. COR #188: Class II Base Material under Swale The original plans did not call out to have stabilizing Class II Base material under the concrete swale in the parking lot. The owner requested that a 6" layer of the stabilizing Class II material being installed under the swale for preventive measure to deter cracking/settling of the concrete sw ale. 26. COR #189: Demolish Scoreboard During construction of the concrete sidewalk along the ball field, it was discovered that the old, non-functioning scoreboard was located within the area that the new sidewalk was to be installed. Considering the existing condition of the scoreboard, the owner directed the contractor to demolish and remove the scoreboard. Change Order 015 Page 5 of 8 CONTRACT CHANGE ORDER C/O Number: 015 TO (Contractor): Jaynes Corporation C/O Initiation Date: October 10, 2005 111 Elm Street 4th Floor Project: National City Public Library San Diego, California 92101 Contract No.: 1028 REASON FOR CHANGE (cont'd): 27. COR #198: CAT 6 Cable to book detector This change was required because the original project plans did not provide any data cabling provisions for the self check book detection system. This cabling is essential for the book detection system to function as design intended at the main entry, the self check out stations and at the self check book return. 28. COR #199: Add power for copier in Local History This was an Owner add due to an the owner adding an additional copier/fax machine in the Local History Room. This change occurred after the original design plans were issued for construction. 29. COR #195: Added screws in armature lights This modification is due to a review of the book stack light fixtures attachment. It was determined that the approved attachment detail did not provide enough support and that the fixtures had to much sway as attached. Additional sheet metal screws were added to the fixture connection to the book stack eliminating the condition. 30. COR #220: Moving signs (on top of book stacks and others) This modification was an owner request to re -position the signage on top of book stacks for better visibility for patrons. The owner also directed moving of the neon sign behind the Children's desk. Other signage was specified, per plan, in incorrect locations and had to be re -located to correct locations for clarity for the library patrons. 31. COR #201: Room 231 storage to office This was an owner requested change to convert room 231 from an originally designed storage room into a useable office space. Added power and data outlets were required to accommodate the revised space usage. 32. COR #191: Relocate Transformers at Media Shelving The original design had the transformers contained within the fabricated casework shelving. Upon installation it was found that the specified transformers were not sized properly to fit inside the casework. In determining the new location for the transformers the floor slab had to be cut and repaired, the drywall columns and suspended ceiling had to undergo modifications to move the transformers above the ceiling grid tiles to hide the equipment from view. 33. COR #210: Dumpsters and labor for hauling out furniture trash During the owner move -in of office furnishings and during the move of the library books from the old library a great deal of owner generated trash and debris was generated. The owner requested that the contractor provide trash dumpsters to deposit owner generated trash and be removed from the site.The owner use a total of six (6) dumpsters for their own generated trash. 34. COR #197: Add 50 Pairs from IDF #2 to MDF This added work was required because the original project plans did not include the requirement for 50 pair phone line wiring from the IDF room on the East side of the second floor to the main MDF room on the West side of the building. These phone lines were required in order to have the IDF room linked into the MDF room for a complete functional system. Change Order 015 Page 6 of 8 CONTRACT CHANGE ORDER C/O Number. 015 TO (Contractor): Jaynes Corporation C/O Initiation Date: October 10, 2005 111 Elm Street 4th Floor Project: National City Public Library San Diego, California 92101 Contract No.: 1028 REASON FOR CHANGE (cont'd): 35. COR #200: Add Voice to Elevator The change was required because the phone line from the elevator cab to the fire monitor system was not indicated in the project plans and drawings. This is required by State Elevator code compliance. 36. COR #208: Modify Keying for Security The owner requested that specific lock cylinders be changed out in order to provide upgraded security because of the amount of computer and technology equipment that had been delivered and stored inside the building. 37. COR #205: Added Counter Top Supports Upon review of the counter top installation, the architect felt that as, designed and installed, the tops did not have enough span support The contractor was directed to add the supplemental supports brackets providing needed strength to the cantilevered counter tops. 38. COR #211: Added Fire Extinguisher by Fire Marshall This change was at the direct request of the CNC Fire Marshall. 39. COR #219: Owner Caused Damage/Repairs (Paint, Patch) This added work resulted from damage to walls, doors, door frames, ceilings from owner contractors (office furniture deliveries and movers) during the owner occupation phase of the • construction. The surfaces damaged had to be re-preped, wall dings patched and re -painted. The contractor accumulated a total of 182 manhours of these repairs. 91 manhours were attributed to owner generated damage to be repaired. 40. COR #222: Added Tees on Hydronics The referenced Tees were not included in the original Hydronic piping design. The tees were required on the heating hot water and chilled water lines to complete the system. The tees were not indicated but are required by the control system approved and installed. 41. COR #217: Extend Drywall Per Fire Marshall This modification was required as a result of the Fire Marshall inspection observing that the original plans, in several did not detail the drywall system to be installed to the underside of the floor/roof above. The Fire Marshall requested that these walls be constructed to the underside of the structure to create a fire block for any potential flame transfer. 42. COR #216: Drywall repairs for Children light revision This modification was needed due to the architectural changes relating to moving the neon sign and the revision to the Children's desk. The referenced changes required that abandoned junction boxes in the wall be repaired with drywall and painted. 43. COR #077: Relocate Local History Room Window Architect request/direction to re -locate the Local History Room Window overlooking the lobby to be moved 8" to the South. 'I'he window opening/frame have already been installed at the original plan location. The revised location better centered the window opening in the wall elevation. Change Order 015 Page 7 of 8 CONTRACT CHANGE ORDER C/O Number: 015 TO (Contractor): Jaynes Corporation C/O Initiation Date: October 10, 2005 111 Elm Street 4th Floor Project: National City Public Library San Diego, California 92101 Contract No.: 1028 REASON FOR CHANGE (cont'd): 44. COR #055: Additional Control Joints for Exterior Stone This modification was a result of a revised exterior stone control joint layout. The control joint pattern had to be revised placing the joints closer together, thereby creating added labor and materials to joint installation then was originally detailed. 45. COR #164r Landscape Plant Upgrades/Replacement This proposal request was generated during the landscape architects job walk. Bambusa Textilis and Agave Sharkskin plants were added as well as plant damage repair due to vandalism after installation/ planting. 46. COR #168: Replace OPAC Solid Surface Tops at Entry This proposal request is to increase the overall depth of the , OPAC counters. The specified/approved tops were fabricated not deep enough to accommodate the self check out equipment that is positioned on these tops. Change Order 015 Page 8 of 8 City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE November 15, 2005 8 AGENDA ITEM NO. /JTEM TITLE Resolution scheduling a Public Hearing date on December 6, 2005, to determin' an underground utilities District 24 (Phase 1) for the purpose of converting the overhead facility along 8th Street from National City Boulevard to Highland Avenue. PREPARED BY Yolando Vitug PEPARTMENT Engineering EXT. 4414 EXPLANATION On November 30, 2004, the representatives of the City and the utility companies completed a field walk-through and established the conversion boundaries of proposed District No. 24. The map (Exhibit "A") and impacted properties address list (Exhibit "B") are attached. In compliance with Ordinance No. 1414 of the City of National City, Staff is requesting a date (December 6, 2005) to hold a public hearing for public comments on whether the public health, safety, welfare require the removal of the poles, and overhead wires and the underground installation of wires and facilities for supplying electrical and communication services within the District No. 24 (Phase I) along 8th Street from National City Boulevard to Highland Avenue (see attached location map). It is recommended that the public hearing be held on December 6, 2005. The Notice of Public Hearing will be sent to all of the affected property owners within the district boundaries. ( Environmental Review Financial Statement N/A MIS Approval Approved By: Finance Director Funds are available from the San Diego Gas & Electric Company, allocated funds fo Account No. undergrounding. STAFF RECOMMENDATION Hold the public hearing and direct the City Clerk's office to send the Public Hearing Notices. BOARD / COMMISSIONf-COMMENDATION N/A ATTACHMENTS ( Listed Below ) 1. Resolution 2. Exhibit "A" — Map of District 24 — Phase I 3. Exhibit "B"- List of Names and addresses of the property owners within District 24 (Phase 1) Resolution No. A-200 (Rev. 7/03) RESOLUTION 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY SCHEDULING A PUBLIC HEARING FOR DECEMBER 6, 2005, TO DETERMINE IF UNDERGROUND UTILITIES DISTRICT NO. 24 IS REQUIRED FOR THE PURPOSE OF CONVERTING THE OVERHEAD FACILITY ALONG 8TH STREET FROM NATIONAL CITY BOULEVARD TO HIGHLAND AVENUE WHEREAS, on November 30, 2004, representatives of the City and the utility companies completed a field walk-through and established the conversion boundaries of proposed Utility District 24; and WHEREAS, San Diego Gas & Electric (SDG&E) has reviewed the parameters of the proposed conversion project and verified that the project complies with the criteria for a 20A conversion; and WHEREAS, in accordance with National City Ordinance No. 1414, staff requests a public hearing to ascertain whether the public health, safety and welfare require the removal of the poles and overheard wires, and the underground installation of wires and facilities for supplying electrical and communication services within the proposed boundaries of Utility District No. 24 (Phase 1). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the time for hearing any and all persons interested in the proposed fee adjustments is hereby set for 6:00 p.m. on December 6, 2005, in the City Council Chambers in the Civic Center, 1243 National City Boulevard, National City, California. BE IT FURTHER RESOLVED that the City Clerk of the City of National City is hereby directed to provide notice of the time and place of said hearing in accordance with the law. PASSED and ADOPTED this 15th day of November, 2005. Nick Inzunza, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney EXHIBIT "A" UNDERGROUND UT11TY DISTRICT N0. 24 (Phase I) STRUT FROM NATIONAL CITY UL ORD TO ffiGDLAND AVE. LEGEND: 11111111111111111 BOUNDARY OF UNDERGROUND UTILITY DISTRICT NO. 84 Date: (NATIONAL AVE> as a fa 1011 !21* I N-q11 j ( ram & 0 i L 481 ' m n, --11 — n�—.T--2 III ij i gL1l_} no x.! C AVENUE us ri �� 1 i i rs § �i i G s' -� m ap F= ! �1 ; 1 mil rf *O i ' !e! � Ili r i ' , 1 D VENUEHIGHL-AND x �, ..4 § E gig mf ;ew e,.I .fe APN 1. 556-472-23-00 2. 556-472-26-00 3. 556-332-24-00 4. 556-473-15-00 5. 556-474-01-00 6. 556-474-04-00 7. 556-474-21-00 8. 556-334-21-00 9. 556-352-18-00 10.556-353-09-00 11.556-353-10-00 12.556-492-07-0 13.556-353-11-0 14.556-353-12-00 15.556-354-15-00 16.556-492-10-00 17.556-354-16-00 18.556-492-12-00 EXHIBIT "B" OWNER'S NAME AND ADDRESS Donald Jackel Trust 11-22-89 6009 Madra Ave., San Diego, CA 92120 City of National City Community Public Agency Ernest J. & Ellen N Addleson Living Trust 6143 Caminito Pan, San Diego, CA 92120 Carlyle M. Meints Tr 222 E 8th Street, National City, CA 91950 Mather Capital Assets Limited Partnership 944 Orange Avenue, Coronado, CA 92118 Eligio Meza 4088 Poplar St., San Diego, CA 92105 Morgan Family Trust 1223 `J' Avenue, National City, CA 91950 Rolando & Lorna Herce Family Trust 1017 E `J' Street, Chula Vista, CA 91910 Pepito Aure Trustee; Aure Family Trust 19 505 E 8th Street, National City, CA 91950 Iglesia Deldios Vivo Columna Y Apoyo Del 605 E 8`h Street, National City, CA 91950 Reynaldo G. Tinsay 619 E 8`h Street, National City, CA 91950 Morgan Family Trust 1223 'J' Avenue, National City, CA 91950 Henry Walker 6390 Kimi Lane, La Mesa, CA 91942 Manuel A & Priscilla A Filomeno 879 Gallery Ct., San Diego, CA 92114 James Ferguson D/S M Trust 4555 Hillview Dr., La Mesa, CA 91941 Nola Z. Kunze 19550 NE Calkins Ln., Newberg, Or 97132 Brothers 2002 Revocable Trust 08-05-02 11678 Petirrojo Ct., San Diego, CA 92124 Axel & Denise A Gormsen 718 E 8th Street, National City, CA 91950 SITE ADDRESS 108 E 8th Street, National City BUSINESS HOME/OTHER Commercial 130 E 8th Street, National City 135 E 8th Street, National City 200 E 8th Street, National City 811 C Avenue, National City 325 E 9th Street, National City 330 E 8th Street, National City 333 E 8th Street, National City 505 E 8`h Street, National City 605 E 8th Street, National City 619 E 8`h Street, National City 330 E 8rh Street, National City 629 E 8th Street, National City 730 `G' Avenue, National City 705 E 8th Street, National City 710 E 8`h Street, National City 717 E 8th Street, National City 718 E 8`h Street, National City Commercial Commercial Commercial Commercial Residential Commercial Commercial Commercial Commercia Commercial Residential Residential Residential Commercial Commercial Commercial Commercial City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE November 15, 2005 9 AGENDA ITEM NO: ITEM TITLE Request to Use the Martin Luther King, Jr. Community Center by the National School District for a "Staff Development Workshop" for School District Employees on Wednesday, December 7, 2005 PREPARED BY Leslie Deese DEPARTMENT Community Services Phone: (619) 336-4242 EXPLANATION The National School District is requesting use of the North Room of the Martin Luther King, Jr. Community Center for a "Staff Development Workshop" for School District Employees on Wednesday, December 7, 2005 from 7:30 a.m. until 1:00 p.m. Approximately 250 employees will be attending. The National School District has used the Community Center on three other occasions in May and June 2005 for their "Parents as Teachers" luncheon, "Mariachi Program" and "Instrumental Music Program." Costs: Building: $527.70 Custodial: 134.04 Total $661.74 Waiver of all fees is also being requested. This is an acceptable category of use under Item V (attached) of 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 Na Financial Statement Approved By: Finance Director Loss of $661.86 if waiver of all fees is approved or loss of $527.70 if waiver of all fees except custodial is approved. Account No. STAFF RECOMMENDATION E' D,t TION As reciprocity for the City's use of School District facilities for Neighborhood Council meetings, Staff recommends the use of the Community Center and waiver of building fees which total $527.70. Staff also recommends not waiving custodial fees which total $134.04. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) Resolution No. 1. Application for use of the Martin Luther King, Jr. Community Center 2. Categories of Use — "Rules and Regulations for the Use of the Martin Luther King, Jr. Community Center" A-200 (9/99) RECEIVED Community Development Commission. NATIONAL SCHOOL DISTRICT 1500 "N" AVENUE • NATIONAL CITY, CA 91950 • (619) 336-7500 FAX (619) 336-7505 October 14, 2005 Ms. Leslie Deese Community Services 1240 E. 12th Street National City, CA 91950 Dear Ms. Deese: I am submitting this letter to request the use of the National City Community Building for the purpose of providing a staff development workshop for employees of the National School District on December 7, 2005, from 7:30 a.m. to 1:00 p.m. The approximate number of people attending this workshop is 250. I respectfully request a waiver of fees. If you have any questions, please feel free to call me at 336-7721. Thank you for assisting me in this matter. I look forward to hearing from you regarding the City Council's approval of my request. Sincerely, Cynthia A. Mesaros Assistant Superintendent —Human Resources CAM:MOD BOARD MEMBERS: ROSALIE "ROSIE" ALVARADO; ANNE L. CAMPBELL; CECILIA GARCIA-KIRK; JAMES GRIER, JR.; MARIA D. MUNOZ DISTRICT SUPERINTENDENT: GEORGE J. CAMERON, Ed.D. ASSISTANT SUPERINTENDENT —EDUCATIONAL SERVICES: ELLEN C. CURTIN, Ed.D. ASSISTANT SUPERINTENDENT —BUSINESS SFRvirFs• RAICHAFI I cesreninc ecsisTetiT Ct toGoiMTcuncMr_ui weu oceni .once. 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: NATIONAL SCHOOL DISTRICT Business Address: 1500 N Avenue Name of Applicant: Cynthia Mesaros Address: 1500 N Avenue Telephone Number: day ( 619) 336-7722 evening ( ) Type of Function: Staff Development Date Requested: December 7, 2005 Decorating Time: 7:00 a.m. (am/pm) to 8:00 a.m. (am/pm) Function Time: 8:00 a.m. (am/pm) to 1:00 p.m. Clean up Time: 1:00 p.m. to 2:00 p.m. (am/pm) Use of Kitchen: X no yes If yes, Time: (am/pm) to (am/pm) Number of Participants: approximately 250 Will Admission be charged? no If yes, Amount $ Will this be a fund raising event? Will alcohol be served? no If yes, ABC Permit Submitted? Certificate of Insurance attached? yes Special configuration of tables or chairs required? yes If yes, attach sketch. Special equipment required? Podium and Microphone 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? If applicable, how much did you pay for building and/or custodial fees? 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 th - - ity's faces ate/ 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 National School District Person in charge of activity Maria Dalla Address 1500 N Avenue, National City, CA 91950 Telephone 336-7721 City facilities and/or property requested Martin Luther King Community Center Date(s) of use December 7, 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 permittee or its agents, employees or contractors. Signature of Appli Asst. Superintendent Human Resources Official Title �o,2(r IDS -- Date Michael Castanos, Assistant Superintendent Business Certificate of Insurance Approved by Name and Title rev. 02/03 NATIONSCH ACORD,. CERTIFICATE OF LIABILITY INSURANCE PRODUCER John Burnham Insurance Svcs 16 r A Lic 0099753 / 750 B St., #2400 n Diego, CA 92101 619 231-1010 INSURED Client#: 2489 DATE (MM/DD/YYYY) 10/26/05 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE COVERAGES San Diego County Schools/JPA National School District 1500 "N" Avenue National City, CA 91951 INSURER A: Ins Co State of PA/AmWINS INSURER B: Issued with AmWINS Ins INSURERC: permission NAIC # 19429 INSURER D: INSURER E: THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAYBE ISSUED OR MAY PERTAIN; THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. SR ADD'L INSRC IN SR TYPE OF INSURANCE POLICY NUMBER A GENERAL LIABILITY X COMMERCIAL GENERAL LIABILITY CLAIMS MADE XI OCCUR GEN'L AGGREGATE LIMIT APPLIES PER POLICY ECOT LOC AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS GARAGE LIABILITY IANY AUTO EXCESS/UMBRELLA LIABILITY OCCUR I CLAIMS MADE DEDUCTIBLE RETENTION $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? If yes, describe under SPECIAL PROVISIONS below OTHER 42052872 Limit is the difference between SIR and $1,000,000 POLICY EFFECTIVE DATE (MM/DD/YY) 07/01/05 POLICY EXPIRATION - DATE (MM/DD/YY) 07/01/06 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS Re: Use of premises at Martin Luther King Jr. Community Center. City of National City, its officials, agents and employees are additional insured per attached form. CERTIFICATE HOLDER EACH OCCURRENCE LIMITS PREMISES SE$ (Ea occccuGE TO ence.) MED EXP (Any one person) PERSONAL & ADV INJURY $1,000,000 $ GENERAL AGGREGATE $ PRODUCTS - COMP/OP AGG COMBINED SINGLE LIMIT (Ea accident) $5,000,000 BODILY INJURY (Per person) BODILY INJURY (Per accident) PROPERTY DAMAGE (Per accident) AUTO ONLY - EA ACCIDENT OTHER THAN AUTO ONLY: EA ACC $ EACH OCCURRENCE AGG AGGREGATE I TORY LIMITS I IDER E.L. EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE E.L. DISEASE - POLICY LIMIT City of National City 1243 National City Boulevard National City, CA 91950 CANCELLATION Teri Day Notice for Non -Payment of Premium SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 90 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. ACORD 25 (2001/08) 1 of 2 #S294987/M26242 AUTHORIZED REPRESENTATIVE TTCAR © 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. JRD 25.5 (2001108) 2 of 2 SPECIAL EXCESS LIABILITY poucy FOR PUBLIC ENTITIES ADDMONAL INSURED ENDOliSEUENT This P011ey is hereby amended as •foitoWS: SECTION IV. WHO -IS AN INSLIREO Is inndd to trio/We: Any person Or entity to Whom the /Veined ined-ed is-obi/0040d hy frtu Of en ineured contract to provide inspranoe:sofely with resphot to, .1;mentir Injtzty: and propeity deiteoe &fen/ad by this. P,dlity, units ttahrirtmited bofttritt tii-4tairie the tiertnal OOiltSe. Of the 40ted'O •0000#1one, salt/ pomOrtor entity shfl be covered only to the extent of,atich-ohligation'of _ . - the ft/tate-it end theft only With re4pett to ohetatioha by or on behalf of the Inne Or of fad/it/OS of the ,ihstiiett et Of fadatles rued by the Easored„ ALL OTHER TERMS AND CONDITION F THIS POLICY REMAIN UNCHANGED •Effective date of this endorsement is: ally 1, 2,005 Attached to and forming part of Poficy No, 4905-2872 I--t.Jed to: SAN DIEGO COUNTY SCHOOLS RISK MANAGEMENT JPA (SDCSRMJPA) THE INSURANCE COMPANY OF THE STATE OF PENNSYLVANIA V. STARR & CO. erwrit g lagers North Hall Exit xit Exit Martin Luther King Community Center 140 E. 12th Street National City, Ca. 91950 R _ -1-`- o A fv\ ► co PM e&LEW East South North West Exit Exit Exit SC ; a acLA, &:-tLen CM-` CATEGORIES OF USE City events organized or sponsored by the city. (NO FRFS) II Events organized or sponsored by Mayor or Council members. (NO FEES) III Recreational activities of the Parks and Recreation Department. (NO FEES) TV City of National City employee groups (CUSTODIAL. FEES ONLY) for official meetings. For other than official meetings, functions will be classified by use. Educational groups. Educational activities organized and sponsored by any school located in National City, or OTHER GOVERNMENTAL AGENCIES. (RESOLUTION RATES AT DISCRETION OF COUNCIL) VI Civic groups. National City organizations which are democratic in character and organized for civic purposes, with membership or participation open to the general public, or designated elements thereof; or fundraising events for community improvements and/or charitable causes. (RESOLTUION RATES) V I Political advocacy. An individual, a group, a political party, sponsors of a ballot proposition, etc., for political advocacy purposes. Includes also a candidate's forum or a ballot proposition(s) forum. VIII Social groups. National®City NON-PROFr.1 organizations which are democratic in character and organized for social purposes, with membership or participation open to the general public. (A National City organization is defined as one having National City residents predominate as officers of the organization, and with at least 75% of its active membership comprised of residents of the City of National City) (A non-profit organization is one whose articlesof incorporation as non-profit have been endorsed by the California Secretary of State, and who submits either a receipt for payment of current California taxes or a current exemption for the payment of these taxes by the STATE FRANCHISE TAX BOARD.) Educational groups meeting for social purposes would be included in this category. IX Other. Proposed uses not fallingreadily into one of the above use categories will require the approval of the City Council. City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE November 15, 2005 10 AGENDA ITEM NO. ()TEM TITLE TEMPORARY USE PERMIT — Temporary Trailers for Chula Lumber at 901 W. 23'd St7\ September 1, 2005 to September 1, 2007 PREPARED BY Joe Olson, 336-4210 DEPARTMENT Building & Safety EXT. EXPLANATION This is a request from Chula Lumber to place temporary trailers at 901 W. 23'd St. effective immediately. Chula Lumber expects to use the trailers for 2 years. The temporary office trailers will be retail centers for Chula Lumber's plywood center. 1• Environmental Review X N/A MIS Approval Financial Statement Approved By: The City has incurred $345.00 for processing the TUP through Finance Director various City departments. >STAFF RECOMMENDATION Account No. Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. Application for a Temporary Use Permit with recommended approvals and conditions of approval. A-200 (Rev. 7/03) CITY OF NATIONAL CITY BUILDING AND SAFETY DEPARTMENT APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: Chula Lumber Corp EVENT: Temporary Office Trailers DATE OF EVENT: Immediately TIME OF EVENT: N/A APPROVALS: BUILDING & SAFETY YES [ x ] NO [ ] SEE CONDITIONS [ x ] PLANNING YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x ] PUBLIC WORKS/ PARKS YES [ x ] NO [ ] SEE CONDITIONS [ ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ x ] COMMUNITY SERVICE YES [ x ] NO [ ] SEE CONDITIONS [ ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ x ] ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ x CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ ] CONDITIONS OF APPROVAL: BUILDING & SAFETY DEPARTMENT 1. Remove the trailer on the right as you enter the property. 2. Remove the truck and 50 gallon barrel on the property. 3. Repair the trailer as required by the building inspector. 4. Provide landscaping at the entrance. 5. Modify the front of the trailer to improve the appearance (subject to approval by the Building & Safety Department. FIRE (619) 336-4550 1. Fire access to be maintained at all times, as defined in Fire Code. 2. Access to be maintained at all times to Fire Department connections and appliances, (fire hydrants, sprinkler system connections, etc.). 3. One 2A:10BC fire extinguisher required to be installed in trailer and maintained. Fire extinguisher to be clearly identified. POLICE (619) 336-4400 If trailers are alarmed, alarm permits must be obtained. ENGINEERING (619) 336-4380 1. No sewer connection to the trailers. 2. No CIP projects anticipated as of this date. However, if moving/relocating of trailers are necessary, please confirm with Engineering 3 weeks prior to event to check, modify, and confirm schedule, if necessary. For more information please contact Kenneth Fernandez at 619-336-4388. 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.) Type of Event: Public Concert _ Parade _ Motion Picture i Fair _ Festival _ Community Event _ Demonstration Circus Block Party Grand Opening _ Other Event Title: ''%?3ryqivy 4-,z ea/ Event Location: Re/ 4/4)s r oZ 3 'cd Event Date(s): From ?- I'/ Vto Total Anticipated Attendance: ( Participants) Actual Event Hours: ('ate to si am// ( Spectators) Setup/assembly/construction Date: Month/Day/Year Start time: Please describe the scope of your setup/assembly work (specific details): Dismantle Date: Completion Time: am/pm List any street(s) requiring closure as a result of this event. Include street name(s), day and time of closing and day and time of reopening. Sponsoring Organization: r fsfic^I .4/srR.P-r Chief Officer of Organization (Name) e 4e,,Im Applicant (Name): Sf-/-a£ . / N+ (4 2- )C For Profit Not -for -Profit Address: 9D / C✓t'S7 07J �� S"% / ,//_� 4( (airy Daytime Phone: t (17) zY?? 3/a/ Evening Phone: ((71%5 A`'56 S v Fax: /' Contact Person "on site" day of the event: Jicik,y,, A Pager/Cellular: //,-/- 6? b d 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): YES X. NO YES Y NO $ Estimated Gross Receipts including ticket, product and sponsorship sales from this event. $ Estimated Expenses for this event. $ What is the projected amount of revenue that the Nonprofit Organization will receive as a result of this event? Please provide a DETAILED DESCRIPTION of your. event. Include details regarding any components of your event such as the use of vehicles, animals, rides or any other pertinent information about the event. p( c-417O.G •-i 4/-)01 -%C, 4 A414 C a+.. as,„.., A/)4,4413 o C -irvi/4 '•"dh YES _ NO If the event involves the sale of cars, will the cars come exclusively from National City car dealers? If NO, list any additional dealers involved in the sale: 2 YES NO Does the event involve the sale or use of alcoholic beverages? _ YES X[ NO Will items or services be sold at the event? If yes, please describe: _ YESNO .YES _ NO YES ,O — YES CIO Does the event involve a moving route of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. Does the event involve the use of tents or canopies? If YES: Number of tent/canopies Sizes NOTE: A separate Fire Department permit is required for tents or canopies. Will the event involve the use of the City stage or PA system? In addition to the route map required above, please attach a diagram showing the overall layout and set-up locations for the following items: ➢ Alcoholic and Nonalcoholic Concession and/or Beer Garden areas. ➢ Food Concession and/or Food Preparation areas Please describe how food will be served at the event: 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 both Crowd Control and Internal Security: _ 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 \CNO Is this a night event? If YES, please state how the event and surrounding area will be illuminated to ensure safety of the participants and spectators: Please indicate what arrangement you have made for providing First Aid Staffing and Equipment. Please describe your Accessibility Plan for access at your event by individuals with disabilities: Please provide a detailed description of your PARKING plan: Please describe your plan for DISABLED PARKIN f �.' S' 7 s /- A..6/ 4 • • Please describe your plans to notify all residents, businesses and churches impacted by the event: NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled In the City parks. _ YES X'NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: Number of Bands: Type of Music: _ YES *1O Will sound amplification be used? If YES, please indicate: Start time: am/pm Finish Time am/pm YESNO 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'K NO Fireworks, rockets, or other pyrotechnics? If YES, please describe: YES KNO 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 Official Tit • 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 (Kwi oxJ �-'S. /�Corir . ,ram Person in Charge of Activity fry /,t,,� nts Address Telephone 6/S7 — 4777 -31cv Date(s) of Use 9 --r3 /- v r HOLD HARMLESS AGREEMENT As a condition of the issuance of a temporary use permit to conduct its activities on public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and the Parking Authority and its officers, employees and agents from and against any and all claims; demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attorneys fees and the costs of litigation, arising out of or related to the use of public property or the activity taken under the permit by the permittee or its agents, employees or contractors. Signature of > ..� ant 0 J,;; v.- f/ Date For Office Use Onl Certificate of Insurance Approved Date 7 R a UESFf6R A' _ WAIVE R QF; 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 orgaYization y• Type of Organization (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) 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) 9 ,$1 k c4e0/0YYP/27, rY9 5J))1,/ OA- .7-C772 rLY it' City of National City, California COUNCIL AGENDA STATEMENT 4AEETING DATE November 15, 2005 11 AGENDA ITEM NO. (ITEM TITLE TEMPORARY USE PERMIT — Granite Slab Sales' Inflatable Monkey at 1124 Coolidge\ Ave. from November 16, 2005 to January 15, 2006. PREPARED BY Joe Olson, 336-4210 DEPARTMENT Building & Safety EXT. EXPLANATION This is a request from Granite Slab Sales to erect an Inflatable Monkey on their premises at 1124 Coolidge Ave. for a length of 60 days, from November 16, 2005 to January 15, 2006. This inflatable monkey will be used to advertise for their business and stands 20 feet high by 10 feet wide. ( Environmental Review X N/A (Financial Statement MIS Approval Approved By: The City has incurred $115.00 for processing the TUP through Finance Director various City departments. STAFF RECOMMENDATION Account No. Approve the Application for a emporary Use Permit subject to compliance with all conditions of approval. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. Application for a Temporary Use Permit with recommended approvals and conditions of approval. A-200 (Rev. 7/03) CITY OF NATIONAL CITY BUILDING AND SAFETY DEPARTMENT APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: Granite Slab Sales EVENT: Inflatable Monkey DATE OF EVENT: November 16, 2005 to January 15, 2006 TIME OF EVENT: N/A APPROVALS: PLANNING YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ x CONDITIONS OF APPROVAL: FIRE (619) 336-4550 No emergency access shall be blocked at any time during this event. This shall include fire hydrants, fire department connections, or driveways. ENGINEERING (619) 336-4380 If Inflatable balloon needs to be relocated to, on, or using the public right-of-way, please contact Kenneth Fernandez at 619-336-4388. Otherwise, no other issues are anticipated by the Engineering Department. 10/26/2005 16:04 6195859911 VALENCIA PAGE 01 Type of Event: _ Public Concert _ Fair _Festival _ Community Event Parade Demonstration _ Circus Block Party _ Motion Picture _Grand Opening Other Event Title; yr' % 4,-fre /a c , 6 off! Event Location: Actual Event Hours: CAL/G - Event Date(s): From n\fl- (t/too 1 W' a .nticipeted Attendance: Month/Day/Year ( Participants) ( Spectators) am/pm to Setup/assembly/construction Dato: am/pm Start time: Plea e describe the scope your setup/assembly work (specific details): dloaf ,../z, Dismantle Date: Completion Time: am/pm List any street(s) requiring closure as a result of this event. include street name(s), day and time of closing and day and time of reopening. Sponsoring Organization: Chief Officer of Organiz Applicant (Name): Address: U Daytime Phone: ([Q"la lerhthg Phone; ( ) Contact Person "on site" day of the event:.,5UIS /, Pager/Cellular: NOTE: THIS PERSON MUST BE iN ATTENDANCE FO AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS 1 Fax: 19 44 '—q(-' I a - a,V-ev\ci.. t 1-4Q 10/25/2005 12:49 6195859911 VALENCIA PAGE 03 Is your organization a "Tax Exempt, nonprofit" organization? _ YES Are admission, entry, vendor or participant fees required? YESO If YES, please explain the purpose and provide amount(s): NO $ Estimated Gross Receipts including ticket, product and sponsorship sales from this event Estimated Expenses for this event. What is the projected amount of revenue that the Nonprofit Organization will receive as'a result of this event? Please provide a DETAILED DESCRIPTION of your.. event. Include details regarding any components of your event such as the use of vehicles, animals, rides or any other pertinent information about the event. -7:17,ihdaek moritt,&n . Cid r is/ice 6 74 oaf s/th 740 /mc 1 s qir as/&ems / ael--zae) 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' ' 10/25/2005 12:49 6195859911 VALENCIA PAGE 04 _ YES 1. NO YES NO YES NO YES NO YES"NO YES Does the event involve the sale or use of alcoholic beverages? Will items or services be sold at the event? If yes, please describe: Does the event involve 9 mowing route of any kind along streets. sidewalks or highways? If YES, attach a detailed map of your proposed route indicate the direction of travel. and provide a written narrative to explain your route. Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets Impacted by the event. 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. 0 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: 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 A 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 • 10/25/2005 12:49 6195859911 VALENCIA PAGE 05 Please describe your procedures for both Crowd Control and Internal Security: 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 t` 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. 4 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 • 10/25/2005 12:49 6195859911 VALENCIA PAGE es Please describe your plans to notify all residents, businesses and churches impacted by the event: NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. YES 0 Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: Number of Bands: Type of Music: YES[VO Will sound amplification be used? If YESplease indicate: . Start time: am/pm Finish Time am/pm YES NO Will sound checks be conducted prior to the event? If YES, please indicate: YES Start time: am/'pm Finish Time am/pm Please describe the sound equipment that will be used for your event: NO Fireworks, rockets, or other pyrotechnics? If YES, please describe: YES NO Any s Revised 1O/3/01 sign , i anners, decorations, spe t lightin e? If YES, plea e describe: al 5 10/25/2005 12:49 6195859911 VALENCIA PAGE 07 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 Person In Charge of Activity Y ClG / -,Cr,/ Address ii 2 Lj 4- Cd%% �' ?6/� "✓' Telephon‘07 —9 Date(s) of Use HOLD HARMLESS AGREEMENT As a condition of the issuance of a temporary use permit to conduct its activities on public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and the Parking Authority and its officers, employees and agents from and against any and all claims; demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any Litigation and other liability, including attorneys fees and the costs of litigation, arising out of or related to the use of public property or the activity take, under the .er wit by the permittee or its agents, employees or contractor• Signature o Offici 'F itle C f Date For O ice Use Only Certificate of Insurance Approved Date 7 City of National City, California COUNCIL AGENDA STATEMENT 4IEET1NG DATE November 15, 2005 12 AGENDA ITEM NO. %JTEM TITLE TEMPORARY USE PERMIT — Rotary Club Paradise Valley Garage Sale at Kimball \ Park on December 10, 2005 from 8 a.m. to 1 p.m. PREPARED BY Joe Olson, 336-4210 DEPARTMENT Building & Safety EXT. EXPLANATION This is a request from the Rotary Club of Paradise Valley to conduct a garage sale at Kimball Park on December 10, 2005. The event will occur between 8 a.m. and 1 p.m., and clean-up will be finished by 2 p.m. The purpose of this sale is to raise money for a medical mission sponsored by the Rotary Club. All of the items will be donated, and some items include clothing, shoes, and small appliances. A waiver of fees is requested. The event and sponsoring organization meet the criteria in the City Council Policy No. 704 for a waiver of fees. Environmental Review X N/A MIS Approval Financial Statement Approved By: The City has incurred $345.00 for processing the TUP through various City departments. >STAFF RECOMMENDATION Finance Director Account No. the Application for Temporary Use Permit to compliance with all Approve pp p ary subjectp 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: Rotary Club Paradise Valley EVENT: Garage Sale DATE OF EVENT: December 10, 2005 TIME OF EVENT: 8 a.m. to 1 p.m. APPROVALS: PLANNING YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x ] PUBLIC WORKS/ PARKS YES [ x ] NO [ ] SEE CONDITIONS [ ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ x ] COMMUNITY SERVICE YES [ x ] NO [ ] SEE CONDITIONS [ ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ ] ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ x ] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ x ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ ] CONDITIONS OF APPROVAL: FIRE (619) 336-4550 No emergency access shall be blocked at any time during this event. This shall include fire hydrants, fire department connections, or driveways. ENGINEERING (619) 336-4380 Sidewalk sections may be repaired during this December timeframe on `D' Ave between 12th and 16th St. adjacent to Kimball Park. For more information please contact Kenneth Fernandez at 619-336-4388. Otherwise, no other issues are anticipated. CITY ATTORNEY Requires an indemnification and hold harmless agreement, and a policy of general liability insurance, with the City and its officials, employees, agents and volunteers as additional insureds, with amounts of coverage to be determined by the Risk Manager. FINANCE (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.) RISK MANAGER (619) 336-4243 1. Provide minimum limits of one million dollars per occurrence of general liability insurance. 2. That the City Of National City and its officials, employees, agents, and volunteers be named as additional insured on each policy. 3. Standard hold harmless signed. •: ". 40/24/2005 00: 07 6193364217 NATIONAL CITY PAGE 88 'type of Event: Public Concert Parade Motion Picture Event Title: Pair Festival Community Event Demonstration Circus Block Party Grand Opening Other 6,s„e.ob8 31AGg- BUILDING AND SAFETY DEPT. RECEIVED ty 4 2005 NATIONAL CITY, CALIF, 1s >/ i4y Gkte4 GE 5,0.1a. Event Location: k/H Ab LL PA�er< Event Dete(s): From DEG /O to a_c/0 Total Anticipated Attendance: MontMDay!Vear —Participants) Actual Event Hours: __rr am m to /® l/�/C Spectators) . Setup/assembly/construction Date; /0� QS Start time: $': i+0 !� y Please describe the scope of your setup/assembly work (specific details): - p-A'cjl! 4fdhs Dismantle Date:///I/oS Completion Time: 2: De 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: 47 Gist, , sf,41;6 , IJ, 1 $ For Profit Chief Officer of Organization (Name)//GMQ./ Pee Not -for -Profit Applicant (Name): 2! P 2-t�fr S/ !7 g A/ Address:/li$'3 1 -4?/�A G A, �-!s! /f-`' AO� Daytime Phone; ( }144/53"4 Evening Phone: eg.yYJ-4•?1SFa.x: (�<n0 -'�rf 944 Gantact Person on site" day of the event G''fh0frl9j- rQ,Q U/91 _ Pager/Cellular; bi , 7k /-- J5 S NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS 10/04/2005 00:07 6193364217 NATIOJAL CITY PAGE 09 Is your organization a "Tax Exempt, nonprofit' organization? le YES _ NO Are admission, entry, vendor or participant fees required? _ YES , NO If YES, please explain the purpose and provide amount(s): $ Estimated Gross Receipts including ticket, product and sponsorship sales from this event. $ Estimated Expenses for this event. S 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. • .a , to s A_ 5 At.,G E o, rice i tt i-S ppithols-A Nv� / 1 M. S Le *ti E S, 5 Al $! 44. i4.I0194 ! R•PG E-S S 6 0,05 g , YES NO If the eveni 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 10/.04/2005 00:07 6193364217 NATIONAL CITY PAGE 18 " YES NO Does the event involve the sale or use of alcoholic beverages? VYES . NO Will Items or services be $urd at the event? if yes, please describe: 1- YES ENO 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 e 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 Silos NOTE: A separate Fire Department permit Is required for tents or canopies. YES 'NO Will the event involve the use of the City stage or PA system? In addition to the route map required above, please attach a diagram showing the overall layout and set-up locations for the following :terns Alcoholic and Nonalcoholic Concession and/or Beer Garden areas. rtJ/,fg- Y Food Concession and/or Food Preparation areas Please describe how food will be served et the event �` t' v t' t' tV Y t/ If you intend to cook food in the event area please specify the method: .t>d Gbv -;A7G? GAS ELECTRIC CHARCOAL OTHER (Specify): /1 Portable and/or Permanent Toilet Facilities Number of portable toilets: l�oA/4(t 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 5rsry- Fencing, barriers and/or barricades NO me -- Generator locations and/or source of electricity iVOM . Canopies or tent locations (include tent/canopy dimensions) r i o N $- Booths, exhibits, displays or enclosures ,JD Nfi Scaffolding, bleachers, platforms, stages, grandstands or related structures (006.) ti vehicles and/or trailers N 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 end 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 a2z.kvt-a_ .10404/2005 00:07 6193364217 NATIONAL CITY PAGE 11 Please describe your procedures for both Crowd Control and Internal Security: CS Gir w-� y- q' tam At-�iy7L y e.5 g: 1 _ YES KNO 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 AO 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. • '3({ is Kf M Er41'&-reL-C a-rc-F off ev29 _ Do c re S. 4-r O A4w44 s S Please la e describe your Accessibility Plan for access at your event b individuals with �+is2biiities: Plebe p vide a ailed dessption of your P INt n: . "A"),/ei 4 ,18/94/2005 00:07 6193364217 NATIONAL CITY Please describe your plans to notify all residents, businesses and churches impacted by the event: PAGE 12 NOTE: Neighborhood residents must e notifieours in advance when events sr scheduled in the City parks. _ YES i/NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: Type of Music: YES /NO Will sound amplification be used? If YES, please indicate: Start time: am/pm Finish Time am/pm YES 4/1ClO Will sound checks be conducted prior to the event? If YES, please indicate: Start time; amIpm Finish Time am/pm Please describe the sound equipment that will be used for your event. Number of Bands: r YE$ 10 Pireworks, rockets. or other pyrotechnics? If YES, please describe: 14ES NO Any signs, banners, decorations, special lighting? If YES, please describe: Revised 08/10/05 ,,.10%04/2005 00:07 6193364217 NATIONAL CITY PAGE 13 Event: For Office 'tile 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 ,:0Ib4/2005 00:07 6193364217 NATIONAL CITY PAGE 14 City of National City P B IC iND ROPERTy USE HOLD HLT SND M IF A iO 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 l r—, 4k. - o S;Or�c�p A'1'r !� !ay Person in Charge of Activity 61Bit.Fev L. Afrs„./ Ago- Address IG.03 re c7Z, a._ 41 20 z— S. ..e? rss- 92 Telephone ifr- As"rry Dams of Use !2/ OLD H RMLESS 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. Sig rtu a of Applicant Official Title For Office Usa niy Certificate of Insurance Approved 7 io/iv /-1I Date Date 191004/2005 00:07 6193364217 NATIONAL CITY PAGE 15 Nan -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? Yea (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 oft . ]•Qnsorin• f rganiz. Type of Qrganizaation)�X (Service Club, Church, Social $ rvlco Agen , etc) 3. Will the event generate net income or proceeds t the sponsoring organization? t,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) ta1Q.4/2005 00:07 5193364217 NATIONAL CITY PAGE 16 5. Will the proceeds provide a direct financial benefit to city government such as the generation of sales tax? zi/e/ Yea (Please provide an explanation and details. i-/INo (Please proceed to Question 6) 8 Will the proceeds provide a direct financial benefit to a service club, social services agency, or other secular non -prom organization located within the city such as Kiwanis, Rotary, Lions, Boys and Girls Club? _ZYes (Pleas . rovide a /-xpianatlo and d IIs. 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) 9 Date U.S. Rotary Club & District General Liability Insurance Program 2005-2006 Certificate of Insurance Request Fong Page 1 of / instructions Complete and retum this form by mail, fax, or email along with a copy of the certificate/insurance requirements from the organization requesting the certificate (if applicable) to: Aon Risk Services. Inc. of Illinois. ACS Address: P.O. Box 1128 Glenview, IL 60025-1128 Facsimile: 1-800-63-0105 Email: acs_chicago(dlars.aon.com The certificate will be issued within 24-48 weekday hours. Special requests may take longer to process. Questions? Call Aon toll -free at 1-866-283-7122 (7:00 am-7:00 pm Mon -Fri, Central Standard Time) Club or District Information Club Name & Number c, , De ✓A �t ' 1 LI r efc.o - 42,4 r� y, Cit (' F, e/r A District Number 5-75LD Contact Name Gs�}$2� �c(1Ptrt-cA Contact Phone Number r- r vµ- erd -'7l -r' Contact Fax Number et-V - .+'3 0 - 8 7a7* Certificate Holder information (What entity is requesting proof of insurance?) Entity Name Ciry o.F- 1t-4r,D,0 -L Crri Address 12 * 3 NIET 4 w+ a l_ Lam' fit 131 Lei • , N,oT',o 4...)44- c.vry1 ei, i e q So Contact wl s . L is i,g• DEr.ese Additional Insured Information Is the certificate holder requesting additional insured status?. ❑ No grYes If yes, why is the certificate holder requesting additional insured status? They are: ❑ the site owner ® a municipality ❑ a vendor ❑ the lessor of equipment/personal property ❑ other (please explain ) Description/Reason for Certificate Event Name (if applicable) PA �-1 �- Ct�i R,a G'� c°"� Event Date(s) (if applicable) IV -4 (' r 0n- t a1 'o (-v-g- or - Event Location -City and State (if applicable) • itJ4f ea4.)4 1,.c i r'`-J C-4{ 3.v a- a I a. Brief Description of the Event Sao -Le 04" Pe0.2 4�.0 LA, $ • 0 - .+tis . Distribution of the Certificate Send an original certificate to aCertificate Holder ■ by mail 21by e-mail (9er¢ Peru @ % *PA(s . co.-, ) ®'by facsimile (number: 858 — a9s - z- b ) ainsured Club/District i -by mail (address: 114+3 04-•r-ia - 4 L- C.4: y '31.1,0 . ) ( e.) 4-n 04✓ 4-II e.►•n f cI4 ci .' a ) 4 ®' by facsimile (number: ('' k - .134. - ' -7 ) ❑bye-mail ( @ ) ❑ Other ❑ by mail (address: ) ❑ by e-mail ( @ ) ❑ by facsimile number: ) Other Information Remarks or other instructions Date Needed 1_ I 1 / ''r (1.-1,dd Today's Date /o / 2' / 7P O f -11- City of National City, California COUNCIL AGENDA STATEMENT AEETING DATE November 15, 2005 AGENDA ITEM NO. 13 /I'CEM TITLE WARRANT REGISTER #16 PREPARED BY Finance EXPLANATION DEPARTMENT City Manager Lin Wurbs 619-336-4240 Ratification of Warrant Register #16 per Government Section Code 37208. EXT. ( Environmental Review Financial Statement Not applicable. STAFF RECOMMENDATION I recommend ratification of these warrants for a total of $ 710,182.27. BOARD / COMMISSION RE .' • MMEND : TI N/A MIS Approval Approved By: Finance actor Account No. ATTACHMENTS ( Listed Below ) (.... 1. Warrant Register#16 2. Workers Comp Warrant Register dated 10/12/05 A-200 (Rev. 7/03) Resolution No. Payee BEST BUY DUMAS A-AMERICAN NATIONAL CITY AL'S COINS AMAZON.COM CREDIT BAKER & TAYLOR CAMPBELL CITY OF NATIONAL CITY DELANEY EDUCATIONAL EMERY-PRATT CO. 'INDERBINDER HIGH FIVE TEAM SALES HIGHSMITH, INC. MARY ALLELY MIDWEST TAPE NATIONAL GEOGRAPHIC SOCIETY OFFICE SUPPLIES PLUS QUILL CORPORATION SCHOLASTIC INC. SCHOLASTIC LIBRARY PUBLISHIN THE BOOKHANDLER THOMSON GALE U.S. POSTMASTER XEROX CORPORATION ARCHER 3AKER City of National City WARRANT REGISTER # 16 10/18/2005 Description chk no MODEL M088800, SKU 6831707.— 200163 RPLC CK#32363-GARNISHMENT FOR P/E 09/26 204355 CONTRACT SERVICES BOOKS BOOKS BOOKS CONTRACT SERVICES BOOKS)SALES TAX) BOOKS(IMLS) BOOKS BOOKS 204356 204357 204358 204359 204360 204361 204362 204363 204364 MATERIALS & SUPPLIES(DONATION ACCOUP204365 MATERIALS & SUPPLIES BOOKS PHOTOGRAPHIC SUPPLIES BOOKS MATERIALS & SUPPLIES OFFICE SUPPLIES BOOKS(DONATION ACCONT) BOOKS BOOKS(IMLS) BOOKS POSTAGE CONTRACT SERVICES TRAVEL (AMERICORPS/LSTA Y-3) TRAVEL (AMERICORPS/CNCS Y-2) 204366 204367 204368 204369 204370 204371 204372 204373 204374 204375 204376 204377 204378 204379 chk date amount 10/18/05 135.30 10/14/05 378.46 10/18/05 76.00 10/18/05 70.04 10/18/05 78.40 10/18/05 1,280.97 10/18/05 275.00 10/18/05 5.69 10/18/05 14,531.39 10/18/05 7.49 10/18/05 154.35 10/18/05 808.13 10/18/05 236.93 10/18/05 15.09 10/18/05 250.90 10/18/05 17.05 10/18/05 281.07 10/18/05 1,209.50 10/18/05 3,120.72 10/18/05 151.29 10/18/05 6,200.20 10/18/05 1,345.08 10/18/05 444.00 10/18/05 571.07 10/18/05 306.26 10/18/05 30.84 1 Payee BAUTISTA BELL City of National City WARRANT REGISTER # 16 10/18/2005 Description TRAVEL (AMERICORPS/CNCS Y-2) TRAVEL (AMERICORPS/CNCS Y-2) chk no chk date amount 204380 10/18/05 50.66 204381 10/18/05 48.79 CA STATE UNIVERSITY SACRAMEN TRAVEL (AMERICORPS/CNCS Y-2) 204382 10/18/05 300.00 TRAVEL (AMERICORPS/LSTA Y-3) 204383 10/18/05 307.89 CONTRACT SERVICES (PRIME TIME Y-2) 204384 10/18/05 6,375.00 TELEPHONE (WINGS) 204385 10/18/05 52.60 EXPERT SERVICES (EASY VOTER GUIDE Y-2) 204386 10/18/05 6,247.48 CARLA CAMPBELL LEHN CATHAY RETA CINGULAR WIRELESS CLARK DEERING DISCOUNT SCHOOL SUPPLY FENCL FERGUSON GANDELMAN GRIFFIN HARPER HARTZ HOLCOMB JACKIE CLARY JONES JONES MANGER MARISCAL MARY ANN PONDER NINNIS O'HARA OFFICE SUPPLIES PLUS QUILL CORPORATION RAMOS ROBINSON TRAVEL (AMERICORPS/CNCS Y-2) INSTRUCTIONAL SUPPLIES (WINGS) TRAVEL (AMERICORPS/CNCS Y-2) EXPERT SERVICES (LIT. SVCS. Y-3) TRAVEL (AMERICORPS/CNCS Y-2) TRAVEL (AMERICORPS/CNCS Y-2) TRAVEL (AMERICORPS/CNCS Y-2) TRAVEL (AMERICORPS/CNCS Y-2) TRAVEL (LIT. INIT. XIV) TRAVEL (AMERICORPS/LSTA Y-3) TRAVEL (AMERICORPS/LSTA Y-3) TRAVEL (AMERICORPS/LSTA Y-3) TRAVEL (AMERICORPS/LSTA Y-3) TRAVEL (AMERICORPS/LSTA Y-3) TRAVEL (AMERICORPS/CNCS Y-2) 1'RAVEL (LIT. INIT. XIV) MAT. & SUPPLIES (WINGS) OFFICE SUPPLIES (LIT. SVCS. Y-3) TRAVEL (AMERICORPS/LSTA Y-2) TRAVEL (AMERICORPS/CNCS Y-2) 204387 10/18/05 31.96 204388 10/18/05 64.59 204389 10/18/05 76.84 204390 10/18/05 75.00 204391 10/18/05 177.48 204392 10/18/05 24.48 204393 10/18/05 65.82 204394 10/18/05 34.68 204395 10/18/05 70.69 204396 10/18/05 11.83 204397 10/18/05 26.25 204398 10/18/05 250.49 204399 10/18/05 359.27 204400 10/18/05 73.44 204401 10/18/05 370.94 204402 10/18/05 3,246.01 204403 10/18/05 691.12 204404 10/18/05 220.38 204405 10/18/05 87.72 204406 10/18/05 49.30 2 City of National City WARRANT REGISTER # 16 10/18/2005 Payee ROSS SAKAMOTO-JAHNKE SORENSEN SPRINT STANISLAUS LITERACY CENTER STRATEGIC RESOURCE COMPANY WOODLAND PUBLIC LIBRARY A-1 HYDRAULIC SERVICES, INC ACCOUNTEMPS ACCOUNTEMPS ACEDO kCS PUBLIC SECTOR SOLUTIONS ADDICTION MEDICINE CONSULTAI' ADT SECURITY SERVICES AMEDEE ARCO GASPRO PLUS ARLIN MEDINA ASSI SECURITY, INC. BANK OF AMERICA BANK OF AMERICA BEST BEST & KRIEGER LLP BEST WESTERN CAPITOL SKYLINE BIA/SC GREEN BUILDING SEMINAR BONITA PET HOSPITAL BOOT WORLD CA LAW ENFORCEMENT ASSO :ALIFORNIA COMMERCIAL POOL Description TRAVEL (AMERICORPS/CNCS Y-2) TRAVEL (AMERICORPS/LSTA Y-3) TRAVEL (AMERICORPS/CNCS Y-2) TELEPHONE (WINGS) chk no 204407 204408 204409 204410 TRAVEL (LIT. INIT. XIV) 204411 EXPERT SERVICES (AMERICORPS/CNCS Y-2). 204412 TRAVEL (AMERICORPS/LSTA Y-3) DISASSEMBLED, CLEANED AND INSPECTED 1204414 TEMP SRVCS MARY JO REBELEZ W/E 9/30/05 204415 TEMP SRVCS PATRICK MORRIS W/E 9/30/05 204416 REIMB/HALLOWEEN CRAFT SUPPLIES/ACED(204417 CONF REGISTRATION/S KI RKPATRICK 204418 MEDICAL SRVCS-RANDOM ALCOHOL/DRUG :204419 QUARTERLY (9/1/05-11/30/05) BILLING FOR 204420 REIMB.WALTER AMEDEE HOMELAND SECUB204421 FUEL FOR CITY FLEET AS NEEDED FOR REFUND BUSINESS LICENSE 204413 204422 204423 50% DEPOSIT FOR INSTALLATION OF CARD 204424 BOA CHRGS-TRAVEL/TRAINING CHRGS 204425 TRAVEL ARRANGEMENTS/MAYOR INZUNZA 204426 LIABLITY CLAIM COSTS-RENEE LOVE VS CN4204427 HOTEL RSRVTN/KATHLEEN TREES & J FLORI204428 GREEN BLDG SEMINAR REG/MARYJO WILSO:204429 ADVANTAGE, VACCINATIONS FOR POLICE K 204430 MOP 64094 BOOTS - BAYJOMAN ADV REGISTRATIONBLANCA MOLINA 204431 204432 chk date amount 10/18/05 6.80 10/18/05 354.43 10/18/05 44.54 10/18/05 29.52 10/18/05 84.80 10/18/05 1,071.00 10/18/05 266.40 10/18/05 45.00 10/18/05 1,480.00 10/18/05 1,358.40 10/18/05 75.76 10/18/05 175.00 10/18/05 706.50 10/18/05 300.63 10/18/05 139.41 10/18/05 24,645.18 10/18/05 50.00 10/18/05 3,972.00 10/18/05 259.80 10/18/05 166.40 10/18/05 3,260.08 10/18/05 570.21 10/18/05 199.00 10/18/05 12.00 10/18/05 77.56 10/18/05 300.00 SEPT 2005 SRVCS-MUNI POOL RENOVATION 204433 10/18/05 241,452.00 3 Pavee CALIFORNIA POLICE EQUIPMENT CASTRO CHOICEPOINT CHRISTMAS IN DULY CHRISTMAS IN JULY CINGULAR WIRELESS CINGULAR WIRELESS CINGULAR WIRELESS CITY-WIDE ELECTRONICS CLF WAREHOUSE COLLINS STRATEGIC GROUP, INC. COLLINS STRATEGIC GROUP, INC. CONSTRUCTION ELECTRONICS IN COPY POST PRINTING COPY WORLD CORPORATE EXPRESS COUNTY OF SAN DIEGO, RCS D-MAX ENGINEERING INC DEPARTMENT OF JUSTICE DISCOUNT SPECIALTY CHEMICALS DREW FORD DREW EDEN SYSTEMS, INC. EDUCATION CORNER EL LATINO NEWSPAPER EMBASSY SUITES HOTEL ENVIRONMENTAL HAZARDS SERV City of National City WARRANT REGISTER # 16 10/18/2005 Description chk no MOP 50746 UNIFORM WEARING APPAREL. 204434 REFUND BUSINESS LICENSE 204435 AUTO TRACK DATABASE - UNLIMITED ACCE204436 MAR TO DEC RENTAL FOR PROPRTY na 20321204437 JAN 2005 RENTAL FOR PROPERTY (a, 2032 B A204438 204439 204440 204441 204442 204443 204444 204445 204446 204447 204448 204449 204450 204451 204452 204453 204454 DATA/VOICE SRVC #0045535344 DATA/VOICE SRVC #113782899 DATA/VOICE SRVC #043-70006473 INV#058035- FIRE ALARM MONITORING ECO 99 11X24 TOP IN ZONE BIN CPRC CONSULTANT 9/24/05 REIMB SUPPLIES CPRC RETREAT ON 9/25/05 OCT 2005 MAINT OF KEY CARD SYSTEM BOOKLET COVER, FULL COLOR (4 FIREFIGHTER BROCHURE MOP 45704 OFFICE SUPPLIES SEPT 2005 RCS RADIO SRVC AND MAINT AUG 2005 SRVCS-STORM WATER SRVCS FINGERPRINTING CHARGES FOR NEW CITY DEFENSIVE GUARD MOP 49078 SYCHRON REIMB.UNIFORM HAT FIRE DEPT. HONOR GU204455 INFORUM GOLD PAYROLL TRAINING MISC ITEMS, IE BULLETIN BOARD TAPE: ADVERTISING EXEC ASSISTANT II 204456 204457 204458 ADV LODGINGBLANCA MOLINA-CLEARS CO204459 LEAD WIPE SAMPLES ANALYZED 204460 chk date amount 10/18/05 169.59 10/18/05 50.00 10/18/05 100.00 10/18/05 15,000.00 10/18/05 1,500.00 10/18/05 1,998.66 10/18/05 140.09 10/18/05 103.89 10/18/05 280.50 10/18/05 140.81 10/18/05 3,906.25 10/18/05 276.43 10/18/05 843.55 10/18/05 1,137.67 10/18/05 371.74 10/18/05 120.37 10/18/05 8,718.50 10/18/05 12,716.50 10/18/05 160.00 10/18/05 167.67 10/18/05 468.87 10/18/05 53.82 10/18/05 1,200.00 10/18/05 105.53 10/18/05 133.25 10/18/05 601.95 10/18/05 288.00 4 Description chk no chk date amount INVOICE FOR PLAN CHECK SERVICES 204461 10/18/05 1,430.71 BANNER: RED/BLUE/BLACK ON WHITE. 204462 10/18/05 345.88 FEDEX ENVELOPE OVERNIGHT 204463 10/18/O5 109.40 USA FLAG, 4' X 6' 204464 10/18/05 128.87 INV#2252650004 - KIT-SHOE/WHEEL 204465 10/18/O5 710.51 #AP101, GARRETT SUPER SCANNER HANDHE:204466 10/18/05 2,262.09 MISC ITEMS, IE FELT, LT BLUE BOARD 204467 10/18/05 437.92 HEARTLAND COMM. FAC. AUTHOR SECOND QUARTER BILLING FOR DISPATCHI2204468 10/18/05 48,561.00 HOME DEPOT/GECF 7 PC REVERSE GEAR WRENCH SET 204469 10/18/05 234.67 ICE, INC. ELECTRIC FANS 204470 10/18/05 183.18 INZUNZA REIMB TRAVEL EXPS LEAGUE OF CA CITIES 204471 10/18/05 618.07 10/18/05 59.00 10/18/05 39.98 JAS PACIFIC, INC. JIM MCCOY BUILDING INSPECTOR FEES 204474 10/18/05 8,021.68 JONES & MADHAVAN MAY 23 2005 SRVCS-MUNI POOL RENOVATIO204475 10/18/05 4,750.00 KATZ OKITSU & ASSOCIATES EUCLID ( 14TH STREET PROF SERVICES 204476 10/18/05 415.00 KLEINFELDER, INC. SEPT 2005 SRVCS-MUNI POOL RENOVATION 204477 10/18/05 2,346.50 LA PRENSA SAN DIEGO ADVERTISING FOR EXEC ASSISTANT II 204478 10/18/05 92.34 204479 10/18/05 313.65 2005 CA MUNICIPAL LAW HAND BOOK 2 COP 204480 10/18/05 378.00 REIMB REFRESHMENTS FOR ROSARITO OFFb 204481 10/18/05 86.26 ONLINE CHARGES FOR SEPT. 2005 204482 10/18/05 133.33 LIGHT THE NIGHT 5K RUN/WALK 2005 204483 10/18/05 150.00 HYDRO TEST 12 BOTTLES $15.00 EACH 2O4484 10/18/05 180.00 REIMB FOR OVERNIGHT POSTAGE FOR EMT-_204485 10/18/05 18.28 ADV MEALS/MILEAGE-CLEARS CONFERENCI204486 10/18/05 475.16 LABOR - ELEVATOR REPAIR AT LIBRARY 204487 10/18/05 395.03 City of National City WARRANT REGISTER # 16 10/18/2005 Payee ESGIL CORPORATION FAST SIGNS FEDEX FLAG CRAFTERS FLEET SERVICES, INC GALLS, INC. GW SCHOOL SUPPLY TOS INTEGRATED OFFICE SYSTEMS RENEWAL ANNUAL TYPEWRITER MAINT. AC 204472 JAMES PUBLISHING SUB - RENEWAL FOR LEGAL ASSISTANT MA(204473 LAKESHORE LEARNING MATERIAL MISC SUPPLIES, IE LAMINATING SHEETS, LEAGUE OF CALIFORNIA CITIES LEMUS-MANCILLA LEXIS-NEXIS LIGHT THE NIGHT 5K MARINE SERVICES INC. MEDINA MOLINA VIONTGOMERY KONE, INC. 5 City of National City WARRANT REGISTER # 16 10/18/2005 Payee MORE DIRECT MX LOGIC, INC MYERS TIRE SUPPLY N & U TRUCKS & AUTO RECYCLIN NAPA AUTO PARTS NATIONAL CITY DETAIL SHOP NATIONAL CITY TROPHY NATIONAL SCHOOL DISTRICT NEXUS INTEGRATED SOLUTIONS NEXUS IS, INC. NORTH PARK TROPHY & AWARD C OFFICE TEAM OFFICE TEAM OFFICE TEAM OFFICE TEAM PARKER & IRWIN PARTS PLUS AUTOSTORE #713 PERRY FORD PHILLIPS POWERSTRIDE BATTERY CO INC PUBLIC EMP RETIREMENT SYSTEM RUSS' BEE REMOVAL SAN DIEGO COUNTY BAR ASSOC SAN DIEGO COUNTY BAR ASSOC SAN DIEGO COUNTY BAR ASSOC SAN DIEGO GAS & ELECTRIC SAN DIEGO GAS & ELECTRIC Description chk no MODEL #DCR-DVD403. SONY 3.0 MP 204488 EMAIL PROTECTION, ANTI-SPAM PROTECTIC204489 204490 QUILLED PLUG WINSHIELD GREEN TINT/BLUE SHADE BATTERY CHARGER MOP 45736 DETAIL MOP 66556-RETIREMENT AWARD-K KOSSYTE204494 USE OF FACILITIES AT EL TOYON SEP'05 204495 ANNUAL MAINTENANCE FOR TELECOM 204496 MOVE, ADD AND CHANGE PHONE LINES ANL204497 204498 204499 204500 204501 204502 204503 204504 204505 204506 204507 204508 2X10 BLACK W/WHITE WILLIAM, LEON W/E 09/23/05 & 09/30/05 WILLIAMS, LEON W/E 09/09/05 & 09/16/05 TEMP SRVCS OLSON JOSEPH W/E 07/15/05 TEMP SRVCS OLSON, JOSEPH W/E 09/23/05 WC CLAIM COSTS MOP 64946 FUEL PUMP MOP 45703 BRAKE REPAIRS REIMB. FOR OFFICER TRAINING EXPENSES MOP 67839 BATTERY SERVICE PERIOD 10-05-3 REMOVED SWARM OF BEES IN TREE AT COR204509 204491 204492 204493 MEMBERSHIP DUES/CLAUDIA SILVA MEMBERSHIP DUES/GEORGE EISER SD CNTY BAR ASSOCIATION DIRECTORY ELECTRIC BILL/STREETS #10093014384 ELECTRIC BILL/STREETS # 98917081416 204510 204511 204512 204513 204514 chk date amount 10/18/05 1,342.57 10/18/05 441.00 10/18/05 262.47 10/18/05 149.00 10/18/05 808.30 10/18/05 135.00 10/18/05 102.36 10/18/05 290.00 10/18/05 5,104.08 10/18/05 1,432.00 10/18/05 176.24 10/18/05 1,547.70 10/18/05 1,420.65 10/18/05 779.35 10/18/05 767.36 10/18/05 375.75 10/18/05 138.79 10/18/05 537.50 10/18/05 80.66 10/18/05 221.54 10/18/05 62,458.01 10/18/05 450.00 10/18/05 185.00 10/18/05 160.00 10/18/05 20.00 10/18/05 27,015.30 10/18/05 3,382.29 City of National City WARRANT REGISTER # 16 10/18/2005 Payee SAN DIEGO GAS & ELECTRIC SAN DIEGO GAS & ELECTRIC SAN DIEGO GAS & ELECTRIC SBC/MCI SBC/MCI SBC/MCI SEGAL SHOCKWEAR SHULTZ SKS INC. SMART & FINAL $OLANO PRESS BOOKS SOUTHERN CALIF TRUCK STOP STAPLES STATE COMPENSATION INS FUND STRATACOM STUMPS SUPERCO SPECIALTY PRODUCTS SWEETWATER AUTHORITY SWEETWA 1'ER AUTHORITY TETRA TECH ASL, INC. THE STAR NEWS TOMARK SPORTS TREASURER, COUNTY OF SAN DIE TREES U.S. HEALTHWORKS JNDERGROUND SERV ALERT Description SUNDRY/PROPERTY RENTAL ELECTRIC BILL/STREET #27985377588 ELECTRIC BILL/STREET #87271426986 VOICE AND DATA #C60-449-7549-555 VOICE AND DATA # 619 47797386438 chk no 204515 204516 204517 204518 204519 SBC VOICE AND DATA ACCT# 1365370 SERVI(204520 EDUCATIONAL REIMB-MARK SEGAL JACKET, NAVY. CITY OF NC PW REIMB FOR RESERVE COMMANDER MEETIN(204523 CHV RYKON HYD OIL AW 32 BULK 204524 MOP 45756-MISC SUPPLIES CA PLANNING 2005 & THE CA DREAM 2004 MOP 45758 DIESEL LOWEPRO REZO 20 BL CLAIMS ADMIN SRVC FEES SEPT 2005 OFFICER'S NOTEBOOKS 204521 204522 204525 204526 204527 204528 204529 204530 POM POMS,UNIMPRINTED, ANCHOR HANDLE 204531 CORROSIVE LIQUID WATER BILL/FACILITIES 12 ACCTS WATER BILL/STREET 10 ACCTS 204532 204533 204534 AUG 2005 SRVCS-STREET RESURFACING PRO204535 LEGAL ADVERTISING OCT 17, 2005 MEETING 204536 STEEL GROUND ANCHORS FY06 CITY SHARE MEMBERSHIP IN THE REIMB AIRFARE/TREES & FLORES 204537 204538 204539 MEDICAL SRVCS-PRE-EMPLOYMENT PHYSIC 204540 NEW TICKETS FOR SEPT(113 TICKETS$1.55 204541 chk date amount 10/18/05 2,572.10 10/18/05 25.11 10/18/05 8.67 10/18/05 6,878.85 10/18/05 229.19 10/18/05 19.74 10/18/05 329.30 10/18/05 308.17 10/18/05 76.00 10/18/05 263.66 10/18/05 52.73 10/18/05 92.02 10/18/05 104.00 10/18/05 285.47 10/18/05 6,466.20 10/18/05 4,415.49 10/18/05 242.44 10/18/05 566.83 10/18/05 23,743.98 10/18/05 4,154.76 10/18/05 3,179.76 10/18/05 297.26 10/18/05 283.16 10/18/05 3,514.00 10/18/05 677.60 10/18/05 460.00 10/18/05 175.15 7 City of National City WARRANT REGISTER # 16 10/18/2005 Payee UNION TRIBUNE PUBLISHING CO VERIZON WIRELESS VIORA WATERS WEST GROUP PAYMENT CENTER WILLY'S ELECTRONIC SUPPLY CO. WOOD & WOOD WOOD & WOOD WOOD & WOOD WOOLSEY WURBS YOUNG YOUNG YOUNG AVAYA, INC BOARD OF EQUALIZATION BOOT WORLD BRIDGESTONE/FIRESTONE, INC. CINTAS CORPORATION #694 COPY POST PRINTING COUNTY OF SAN DIEGO COUNTY OF SAN DIEGO CUMMINS CAL PACIFIC, LLC DIXIELINE LUMBER CO FIRST ADVANTAGE CORPORATION FLOWERS 4 YOU GREAT AMERICAN INSURANCE CO Description chk no REQUEST FOR QUALIFICATIONS PARATRAN.204542 MOBILE SRVCS FOR CITY USERS #570210396 204543 REIMB FOR PARAMEDIC SCHOOL EXPENSES 204544 MEETING SEPT. 20, 2005 C. MANAGERS OFFIC204545 MILLER & STARR CA REAL ESTATE W/ FORM 204546 MOP 45763 COMPUTER SUPPLIES 204547 LIABILITY CLAIM COSTS-AHLES VS OFFCR 0204548 LIABILITY CLAIM COSTS-ANTONIO FLORES 204549 LIABILITY CLAIM COSTS-FRISBIE VS CNC 204550 REIMB. FOR TRAVEL EXPS 204551 REIMB TRAVEL EXPS CA LEAGUE OF CITIES 204552 REIMB/HALLOWEEN EVENTS SUPPLIES/YOU1204553 REIMB/CLOSET SHELVES SUPPLIES/YOUNG 204554 REIMB/HALLOWEEN EVENTS SUPPLIES/YOU1204555 PHONE SERVICE AGRMT 09/02/05-10/01/05 DIESEL FUEL TAX - 3RD QTR BOOTS FOR DRIVERS TIRES MAINT LAUNDRY SERVICE BUS SCHEDULES PAYROLL PPE 10/01/05 - JOSE VASQUEZ PAYROLL PPE 10/01/05 - SHERRY LOGEL BUS PARTS AS NEEDED FOR FY06 PANT FOR BENCHES RANDOM COLLECTION FEES EMPLOYEE PICNIC COSTS WC INSURANCE 10/23/05 204556 204557 204558 204559 204560 204561 204562 204563 204564 204565 204566 204567 204568 chk date amount 10/18/05 516.00 10/18/05 3,916.40 10/18/05 743.97 10/18/05 27.65 10/18/05 2,585.83 10/18/05 19.25 10/18/05 5,266.50 10/18/05 3,583.58 10/18/05 910.00 10/18/05 50.16 10/18/05 131.00 10/18/05 263.34 10/18/05 109.28 10/18/05 60.08 10/18/05 46.88 10/18/05 372.29 10/18/05 341.44 10/18/05 353.80 10/18/05 125.04 10/18/05 2,189.67 10/18/05 50.00 10/18/05 23.04 10/18/05 38.97 10/18/05 21.31 10/18/05 305.00 10/18/05 159.04 10/18/05 42,080.39 8 City of National City WARRANT REGISTER # 16 10/18/2005 Payee JACK BASSOFF MATA ENTERPRISES NAPA AUTO PARTS NATIONAL CITY PUBLIC LIBRARY Description BUS WASH REPAIRS ASSISTED IN ELECTRIAL WIRING FOR AUTO PARTS & FINANCE CHARGE LIBRARY DONATION - PPE 10/01/05 NATL CITY CHAMBER OF COMMER NAVY LUNCHEON 10/12/05 NEW FLYER PARTS RADIOS4YOU INC. SBC SMART & FINAL W.W. GRAINGER, INC. WEBSTER BUS PARTS AS NEEDED FOR FY06 SOLAR DYNAMO RADIOS & ANT - OFFICE PHONE 09/05/05 - 10/04/05 BAGS OF ICE FOR SAFETY PICNIC LEVER ACTION PUMP APTA CONFERENCE chk no chk date amount 204569 10/18/05 620.00 204570 10/18/05 225.00 204571 10/18/05 47.06 204572 10/18/05 29.85 204573 10/18/05 120.00 204574 10/18/05 180.05 204575 10/18/05 249.75 204576 10/18/05 282.12 204577 10/18/05 16.11 204578 10/18/05 29.10 204579 10/18/05 1,202.31 Total Workers compensation checks $ 692,600.32 10631 10/12/05 514.97 10632 10/12/05 92.73 10633 10/12/05 990.00 10634 10/12/05 20.90 10635 10/12/05 45.60 10636 10/12/05 11.69 10637 10/12/05 3,524.75 10638 10/12/05 47.97 10639 10/12/05 130.98 10640 10/12/05 425.74 10641 10/12/05 97.42 10642 10/12/05 170.08 10643 10/12/05 27.84 10644 10/12/05 460.00 9 City of National City WARRANT REGISTER # 16 10/18/2005 Payee Description chk no chk date amount 10645 10/12/05 448.61 10646 10/12/05 134.79 10647 10/12/05 2,254.33 10648 10/12/05 3,072.57 10649 10/12/05 72.80 10650 10/12/05 62.60 10651 10/12/05 176.80 10652 10/12/05 83.30 10653 10/12/05 47.60 10654 10/12/05 85.58 10655 10/12/05 108.59 10656 10/12/05 295.91 10657 10/12/05 116.15 10658 10/12/05 173.33 10659 10/12/05 76.02 10660 10/12/05 190.50 10661 10/12/05 362.50 10662 10/12/05 1,125.00 10663 10/12/05 400.00 10664 10/12/05 370.00 10665 10/12/05 32.30 10666 10/12/05 1,332.00 Total $ 17,581.95 10 Payee City of National City WARRANT REGISTER # 16 10/18/2005 Description chk no chk date amount Grand Total 710,182.27 LIBRARY WARRANTS CHECK#204356-204413 58 CHECKS $ 52,715.66 TRANSIT WARRANTS CHECK#204556-204579 24 CHECKS $ 49,108.22 PAID OUT OF HUD GUARANTEED LOAN FUND ACCT'FOR THE CONSTRUCTION ON THE NEW FIRE STATION CHECK#200163 1 CHECK $ 135.30 11 001 104 105 108 109 111 120 125 130 136 189 243 246 250 253 254 277 280 282 283 284 285 286 287 288 303 349 552 626 627 628 629 630 631 632 643 City of National City WARRANT REGISTER # 16 10/18/2005 GENERAL FUND LIBRARY FUND PARKS MAINTENANCE FUND LIBRARY CAPITAL OUTLAY GAS TAXES FUND P.O.S.T. FUND PLAN CHECKING REVOLVING FUND SEWER SERVICE FUND EMT-D REVOLVING FUND TINY TOT CLASSES FUND CIVIC CENTER REFURBISHING PER CAPITA GRANT PROGRAM WINGS GRANT NEW FIRE STATION CONSTRUCTION RECREATIONAL ACTIVITIES FUND LEAD -BASED PAINT HAZARD REDUC NC PUBLIC LIBRARY DONATIONS F AMERICORPS/CNCS YEAR 2 GRANT REIMBURSABLE GRANTS CITYWIDE Inst. of Museum & Library Svcs. Grant Literacy Initiatives XIV EASY VOTER GUIDE II LITERACY SERVICES III AMERICORPS LSTA III PRIME TIME II CAPITAL FACILITIES FUND GEN FUND LOCAL ASSISTANCE FOR 1 TDA FACILITIES MAINT FUND LIABILITY INS. FUND GENERAL SERVICES FUND INFORMATION SYSTEMS MAINTENA OFFICE EQUIPMENT DEPRECIATION TELECOMMUNICATIONS REVOLVI GENERAL ACCOUNTING SERVICES MOTOR VEHICLE SVC FUND TOTAL 180,592.94 3,359.56 967.83 3,110.36 3,179.76 130.82 9,452.39 13,177.12 743.97 857.10 3,972.00 241,452.00 704.81 135.30 351.72 18,077.69 3,928.85 2,653.18 2,262.09 20,731.59 3,353.19 6,247.48 295.38 1,956.26 6,375.00 2,346.50 4,750.00 49,108.22 25,463.21 37,444.06 59.00 2,716.55 8,718.50 18,390.90 4,135.46 28,981.48 710,182.27 12 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 D OR 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 15TH DAY OF NOVEMBER 2005. AYES NAYS ABSENT City of National City, California COUNCIL AGENDA STATEMENT IEETING DATE November 15, 2005 14 AGENDA ITEM NO. ITEM TITLE WARRANT REGISTER #17 PREPARED BY Finance EXPLANATION DEPARTMENT City Manager Lin Wurbs 619-336-4240 Ratification of Warrant Register #17 per Government Section Code 37208. CEnvironmental Review N/A Financial Statement Not applicable. Approved By: r FinanGEr'rector Account No. STAFF RECOMMENDATION I recommend ratification of these warrants for a total of $ 1,196,132.56 BOARD / COMMISSION�RE OMMENDATION £ yL4 - jL �P 'vCJ 6/j ATTACHMENTS ( Listed Below ) 1. Warrant Register #17 2. Workers Comp Warrant Register dated 10/14/05 3. Payroll Register dated 10/14/05 Resolution No. A-200 (9:99) Pavee BOARD OF EQUALIZATION KLEINFELDER, INC. City of National City WARRANT REGISTER # 17 10/25/05 Description SALES & USE TAX 3RD QRTR 2005 10/10/05 PROF SRVC-NC FIRE STATION BAYSHORE TRANSIT MGMT INC PAYROLL CK DTD 10/07/05 CALBO CALBO GIL CALBO TRAINING/JANET FLORES OCT 24-28 CALBO TRAINING/GABRIEL IBARRA OCT 24-28 REIMB LODGING-CACE CONF OCT 4-6, 2005 ONTARIO AIRPORT MARRIOTT HOTEL/GABRIEL IBARRA-CALBO TRAINING ACCOUNTEMPS TEMP SRVCS MARY-JO W/E 10/07/05 ACCOUNTEMPS TEMP SRVCS PATRICK MORRIS W/E 10/07/05 ADAMSON INDUSTRIES (SOUTH) POD, DRIVER SIDE AFFORDABLE SERVICE APPLIAN( REPAIR ICE MACHINE AT MARTIN LUTHER ASBURY ENVIRONMENTAL SER\ 50/50 COOLANT ASG SIGNS AUDIO & VIDEO REPAIR, INC. AUSTIN DOORS BATTERY SPECIALTIES BEACON FIRE & SAFETY, LP BOARD OF EQUALIZATION CAREER TRACK CATANZARITA CHEVRON USA, INC. CORPORATE EXPRESS COUNTY OF SAN DIEGO CORO (CUSTOM CUT). WHITE. VINYLED ESTIMATE TO REPAIR INVESTIGATIONS VCR FURNISH & INSTALL NEW OPERATOR AT FIRE DRY CELL BATTERIES ANNUAL FIRE EXTINGUISHER MAINTENANCE AT SALES & USE TAX 3RD QRTR 2005 SEMINAR REGSTRTN/CHERI PALAZO EDUC REIMB/CATANZARITA 8/29/05 - 9/24/05 MOP 45699 CITY FLEET GASOLINE MOP 45704 OFFICE SUPPLIES PROP "B" ELECTION COSTS chk no chk date amount 200164 10/25/05 4.64 200165 10/25/05 1,651.00 204580 10/20/05 48,089.07 204581 10/20/05 610.00 204582 10/20/05 610.00 204583 10/20/05 123.17 204584 10/20/05 889.25 204585 10/25/05 1,480.00 204586 10/25/05 1,358.40 204587 10/25/05 332.89 204588 10/25/05 484.00 204589 10/25/05 189.64 204590 10/25/05 230.24 204591 10/25/05 27.00 204592 10/25/05 3,887.81 204593 10/25/05 273.28 204594 10/25/05 2,944.54 204595 10/25/05 2,335.36 204596 10/25/05 149.00 204597 10/25/05 612.45 204598 10/25/05 125.63 204599 10/25/05 198.01 204600 10/25/05 24,151.00 D-MAX ENGINEERING INC T&A 0911 3201 HOOVER AVENUE 204601 10/25/05 1,580.50 DAVID MORSE & ASSO., INC. COST OF REPORT OVRPMNT CLAIM#7968717/6 204602 10/25/05 4.00 DEPARTMENT OF TRANSPORTAT AUG 2005 HIGHWAY LIGHTING 204603 10/25/05 3,359.59 DIEHL EVANS & COMPANY LLP REGISTRATION/T LIMFUECO & M MANALO 204604 10/25/05 390.00 DIXIELINE LUMBER CO. MOP 45707 CLEANING SUPPLIES. 204605 10/25/05 191.62 ENVIRONMENTAL HAZARDS SER ENVIRONMENTAL HAZARDS SRVCS 21 INVS 204606 10/25/05 486.00 ENVIRONMENTAL HEALTH COAI EHC CONTRACT LEAD HAZARD PUBLIC OUTREACH 204607 10/25/05 21,296.12 EXPERIAN CREDIT CHECKS FOR NEW PD EMPLOYEES AS 204608 10/25/05 24.48 FEDEX DUST WIPE SAMPLES SENT 204609 10/25/05 51.69 FEDEX FEDEX CHRGS-DUST WIPE SAMPLES SENT 204610 10/25/05 52.46 FLAG CRAFTERS US FLAGS FOR FIRE STATION #34, 5'X8' 204611 10/25/05 159.00 GEORGE H WATERS NUTRITION ( CATERING NEIGHB QUART BREAKFAST 10/15/05 204612 10/25/05 700.00 GEORGE H WATERS NUTRITION ( CATERING AT CPRC MTG 10/13/05 204613 10/25/05 56.62 GIL CLEAN UP EVENT 08/13/05 EXPENSES 204614 10/25/05 387.90 GROSSMAN PSYCHOLOGICAL AS OFFICER ASSISTANCE PROG OCT/NOV/DEC 2005 204615 10/25/05 1,737.50 GROSSMAN PSYCHOLOGICAL AS PRE -EMPLOYMENT PSYCHOLOGICAL EXAMS FOR 204616 10/25/05 960.00 HEALTHNANALYTICS LLC PARAMEDIC IMPLEMENTATION PROJECT FOR 204617 10/25/05 11,329.20 HERNANDEZ T&A 0804-RFND PERFORMANCE BOND 204618 10/25/05 700.00 HUNTING SHACK, INC. 9MM 147 GRAIN FULLY JACKETED, LEAD 204619 10/25/05 1,767.06 ICE, INC. LABOR 204620 10/25/05 990.69 IRON MOUNTAIN RECORDS MGM IRON MOUNTAIN STORAGE FEES 204621 10/25/05 100.00 JEFF KATZ ARCHITECTURE SEPT 2005 SRVCS-COUNCIL CHAMBER RENOVATN 204622 10/25/05 16,350.00 JOBS AVAILABLE INC. ADVERTISEMENT FOR TRAFFIC ENGINEER 204623 10/25/05 276.25 KINKO'S NATIONAL COPIES FOR THE GANG INJUNCTION AS PER 204624 10/25/05 1,313.34 LAULETTA REIMB QRTRLY BREAKFAST 10/15/05 204625 10/25/05 80.75 LEADER INSURANCE COST OF REPORT OVRPMNT CLAIM#5215615 204626 10/25/05 4.00 LOPEZ INTERPRETING SRVC 10/15/05 QRTLY BREAKFS 204627 10/25/05 100.00 MAAC PROJECT SEP 2005 MAAC CONTRACT LEAD HAZARD CNTRL 204628 10/25/05 29,731.00 MAIN ST. ANIMAL HOSPITAL VET CARE FOR POLICE K9 DOGS AS NEEDED 204629 10/25/05 79.51 2 MAINTEX, INC. JANITORIAL SUPPLIES 204630 10/25/05 456.16 MALLORY FIRE MORNING PRIDE HOODS, 40% P-84, 55% PFR 204631 10/25/05 1,480.49 MEDINA REIMB/PARAMEDIC LICENSE/MEDINA 204632 10/25/05 145.00 MORE DIRECT MP775 GPS RUGGED WIRELESS MODEM. 204633 10/25/05 1,012.87 MUNI FINANCIAL FY 2003-2004 ANNUAL INFO STMT 204634 10/25/05 1,000.00 N & U TRUCKS & AUTO RECYCLE WINDSHIELD TINT 204635 10/25/05 170.00 NATIONAL CITY CAR WASH SEPT 2005 CAR WASHES FOR CITY FLEET 204636 10/25/05 456.00 NC SENIOR NUTRITION PROGRA1 FRESH FRUIT TRAY, VEGETABLE TRAY, 204637 10/25/05 666.22 POST REIMB TRVL EXPS LEAGUE OF CA CITIES CONF 204638 10/25/05 538.28 PROCHEM SPECIALTY PRODUCT! CARGLO (PINK) 5 GL 204639 10/25/05 152.04 RELIABLE TIRE CO. PASSENGER TIRES (184 @ $2.00), DISPOSAL 204640 10/25/05 957.50 SAN DIEGO GAS & ELECTRIC ELECTRIC BILL/FACILITIES#29728110755 204641 10/25/05 29,900.14 SAN DIEGO GAS & ELECTRIC ELECTRIC BILL/FACILITIES#10091911839 204642 10/25/05 1,368.20 SAN DIEGO GAS & ELECTRIC ELECTRIC BILL/WASTEWATER#10092646814 204643 10/25/05 84.89 STRATACOM REQUEST FOR LEAVE OF ABSENCE 204644 10/25/05 352.13 IHE STAR NEWS ADVERTISING OF BIDS, AUCTIONS & OTHER 204645 10/25/05 39.38 THOMSON WEST RENEW TITLE 19 PUBLIC SAFETY CODES FOR 204646 10/25/05 95.00 UNITED STATES TREASURY 3RD QRTR 2005 MEDICARE TAXES 204647 10/25/05 22.74 US STERLING CAPITAL CORP TRADE SETTLING SRVCS 10/01-07/05 204648 10/25/05 198.00 VCA EMERGENCY ANIMAL HOSP EMERGENCY VET VISIT - 484S 8/11/05 204649 10/25/05 40.00 VISTA PAINT GRAFFITI PAINT 204650 10/25/05 484.53 CMRTA REGISTRATION/ADELLA SALAZAR-CMRTA CONF 204651 10/25/05 95.00 DEPARTMENT OF JUSTICE FINGERPRINTING CHARGES FOR NEW CITY 204652 10/25/05 153.00 ARCO GASPRO PLUS FUEL FOR STAFF VEHICLES 204653 10/25/05 348.31 ASSOCIATED TOWING REF # 355885 TOWED BUS # 6014 FROM 204654 10/25/05 250.00 BAYSHORE TRANSIT MGMT INC PAYROLL CK DTD 10/21/05 204655 10/25/05 45,980.70 BEARCOM SERVICER LABOR HOURS @ 1.00 SN: 204656 10/25/05 175.00 BRIDGESTONE/FIRESTONE, INC. TIRES - AUGUST'05 BUCK PETROLEUM CO 1741 DURON 15W/40 IN BULK. CALIFORNIA TRANSIT ASSOCIAT CTA CONFERENCE REGISTRATION 204657 10/25/05 3,512.38 204658 10/25/05 1,694.29 204659 10/25/05 380.00 CINTAS CORPORATION #694 MAINT LAUNDRY SERVICE DIXIELINE LUMBER CO FEDEX KIMBALL MIDWEST SHOP SUPPLIES OVERNIGHT MAIL SHOP TOOLS AS NEEDED FOR FY06 KIRK'S RADIATOR & AUTO AIR IT CLEAN & TEST RADIATOR M&M PLASTICS DECAL, CUSTOM NCT PIN MARQUEZ UNIFORM & EMPLOYEE APPR NATIONAL INTERSTATE INS CO. LIABILITY INSURANCE NEW FLYER PARTS NEXTEL COMMUNICATIONS PRE -PAID SERVICES INC PRINCIPAL FINANCIAL GROUP PRINCIPAL FINANCIAL GROUP SAFETY-KLEEN SYSTEMS, INC. SAN DIEGO FRICTION PROD. SMART & FINAL SHOCK ABSORBER/SLIDE SET BUS & PHONE RADIO CHARGES PRE -PAID LEGAL SERVICES 401K PPE 10/15/05 ANNUITY CONTRACT#4-36143 WASTE REMOVAL BUS PARTS AS NEEDED FOR FY06 EMPLOYEE APPRECIATION UNISOURCE MAINTENANCE SUP] JANITORIAL SUPPLIES W.W. GRAINGER, INC. Workers compensation checks. BALLAST 204660 10/25/05 204661 10/25/05 204662 10/25/05 204663 10/25/05 204664 10/25/05 204665 10/25/05 204666 10/25/05 204667 10/25/05 204668 10/25/05 204669 10/25/05 204670 10/25/05 204671 10/25/05 204672 10/25/05 204673 10/25/05 204674 10/25/05 204675 10/25/05 204676 10/25/05 204677 10/25/05 Total 180.11 19.53 44.90 521.19 77.25 51.72 126.23 16,563.16 600.13 828.40 856.75 2,396.21 2,326.97 1,865.79 96.03 159.23 416.45 36.64 304,390.60 10667 10/19/05 53.25 10668 10/19/05 47.60 10669 10/19/05 786.60 10670 10/19/05 11.69 10671 10/19/05 11.69 10672 10/19/05 490.00 10673 10/19/05 126.69 10674 10/19/05 156.84 10675 10/19/05 148.22 4 10676 10/19/05 154.39 10677 10/19/05 5,400.00 10678 10/19/05 147.61 10679 10/19/05 9.84 10680 10/19/05 584.73 10681 10/19/05 489.93 10682 10/19/05 391.58 10683 10/19/05 850.94 10684 10/19/05 158.52 10685 10/19/05 18.44 10686 10/19/05 104.98 10687 10/19/05 364.14 10688 10/19/05 47.39 10689 10/19/05 237.79 10690 10/19/05 27.42 10691 10/19/05 83.94 10692 10/19/05 184.97 10693 10/19/05 144.97 10694 10/19/05 411.91 10695 10/19/05 208.19 10696 10/19/05 74.32 10697 10/19/05 127.22 10698 10/19/05 7.65 10699 10/19/05 10700 10/19/05 10701 10/19/05 94.17 116.72 241.91 10702 10/19/05 10.67 10703 10/19/05 370.00 10704 10/19/05 1,192.40 93.16 10705 10/19/05 5 PAYROLL Total Total Pay period Start Date End Date Check Date 10706 10/19/05 13.60 10707 10/19/05 1,600.00 10708 10/19/05 370.00,-- 10709 10/19/05 111.55 10710 10/19/05 761.05 10711 10/19/05 22,680.18 10712 10/19/05 400.00 10713 10/19/05 400.00 10714 10/19/05 320.00 40,838.86 345,229.46 264 9/27/05 10/10/05 10/1.9/05 Total 850903.1 GRAND TOTAL 1,196,132.56 TRANSIT WARRANTS CHECK#204653-204677 25 CHECKS $ 79,507.37 PAID OUT HUD GUARANTEED LOAN FUND ACCT FOR THE CONSTRUCTION OF THE NEW FIRE STATION CHECK#200164-200165 2 CHECKS $ 1,655.64 City of National City Warrant Register # 17 10/25/05 001 GENERAL FUND 659,382.63 104 LIBRARY FUND 33,196.01 105 PARKS MAINTENANCE FUND 18,538.65 109 GAS TAXES FUND 4,000.21 125 SEWER SERVICE FUND 18,327.85 130 EMT-D REVOLVING FUND 11,459.20 154 STATE PUBLIC LIBRARY FUND 762.28 171 LIBRARY SCHOOL DISTRICT CNTRCT 1,181.89 172 TRASH RATE STABILIZATION FUND 2,642.56 188 GRANT - HIDTA 4,126.61 189 CIVIC CENTER REFURBISHING 16,350.00 191 STOP PROJECT 5,025.00 208 SUPP.LAW ENFORCEMENT SVCS FUND (SLESF) 940.01 211 SECURITY AND ALARM REGULATION FUND 1,283.33 212 PERSONNEL COMPENSATION FUND 2,394.00 222 WOW MOBILE GRANT FY 2000-2001 2,289.50 230 ABANDONED VEHICLE ABATEMENT GRANT 3,030.52 246 WINGS GRANT 28,468.10 250 NEW FIRE STATION CONSTRUCTION 1,655.64 254 LEAD -BASED PAINT HAZARD REDUCTION GRANT 59,536.77 273 CBAG-MAJOR MEXICAN TRAFFICKERS 2,773.16 274 LITERACY INITIATIVE XIII 1,029.20 276 LITERACY SERVICES YEAR 2 930.74 280 AMERICORPS/CNCS YEAR 2 GRANT 3,173.69 301 GRANT-C.D.B.G. 11,150.99 302 CDC PAYMENTS 15,415.23 307 PROPOSITION A" FUND 5,904.51 552 TDA 127,995.38 626 FACILITIES MAINT FUND 56,765.90 627 LIABILITY INS. FUND 44,402.21 628 GENERAL SERVICES FUND 6,629.54 629 INFORMATION SYSTEMS MAINTENANC 4,217.80 630 OFFICE EQUIPMENT DEPRECIATION 3,720.60 631 TELECOMMUNICATIONS REVOLVING 2,657.03 632 GENERAL ACCOUNTING SERVICES 17,887.74 643 MOTOR VEHICLE SVC FUND 14,607.58 726 ENGINEERING/PUBLIC WORKS T & A DEPOSITS 2,280.50 Total 1,196,132.56 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 ZARAIE, 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 15TH DAY OF NOVEMBER 2005. AYES NAYS ABSENT City of National City, California COUNCIL AGENDA STATEMENT FETING DATE November 15, 2005 AGENDA ITEM NO. 15 ITEM TITLE WARRANT REGISTER #18 PREPARED BY DEPARTMENT Finance City Manager EXPLANATION Lin Wurbs 619-336-4240 Ratification of Warrant Register #18 per Government Section Code 37208. ( Environmental Review NSA 11/11.6 Financial Statement Approved By: Final •irector Not applicable. Account No. STAFF RECOMMENDATION I recommend ratification of these warrants for a total of $ 335,809.83 BOARD / COMMISSIONECOMMEN ATION ft-5A ATTACHMENTS ( Listed Below ) 1. Warrant Register #18 2. Workers Comp Warrant Register dated 10/26/05 3. Resolution No. A-200 (9;99) Payee COUNTY OF SAN DIEGO PRINTS PLUS SPARKLETTS PROTECT AMERICA INC. AAA RADIATOR WAREHOUSE ACTION TROPHIES & ENGRAVING AMERICAN ROTARY BROOM CO., I AV GUYS BANK OF AMERICA BOOT WORLD JOYD CWREEDJR CALIFORNIA COMMERCIAL SECUR CALIFORNIA ELECTRIC SUPPLY CARRIER JOHNSON, INC. CASWELL INTERNATIONAL CORP. CHEVRON USA, INC. CHILDREN'S HOSPITAL CORPORATE EXPRESS D-MAX ENGINEERING INC DANIEL PEARCE/ RPM WELDING DAPPER TIRE COMPANY DEFRATIS DELL MARKETING CORP DEMCO INC. )EPT OF CONSERVATION City of National City WARRANT REGISTER # 18 11/1/05 Description chk no COST OF DISTRICT NOTIFICATION 200166 PICTURE FRAMES FOR FINANCE CONE ROOM 204678 WATER FOR MAYOR/CITY COUNCIL OFFICE 204679 ALARM MONITORING AUG 2005-AUG 2006 204680 AUTOMOTIVE PARTS (RADIATORS, HEATER 204681 ID NAME TAGS FOR UNIFORMS, WITH MALT1204682 204683 204684 MOP 62683 SWEEPER PARTS FIREFIGHTER TESTING EQUIPMENT BOA CHRGS-CONF ACCOMODATIONS/ZARAT204685 MOP 64096 SAFETY BOOTS - GONZALEZ RETIREE HEALTH BENEFITS NOV 2005 RETIREMENT 2000964-S90 NOV 2005 MOP 45754 PADLOCK MOP 45698 PARTS 204686 204687 204688 204689 204690 MAY 30-JUN 26, 2005 SRVCS-NC LIBRARY 204691 RUBBER COMPOSITE BULLET TRAP, SHORT 204692 MOP 45699 FUEL 204693 TEDDY BEAR DRIVE DONATION TO NCPD 204694 MOP 45704 ONE HIGH CAPACITY ADJUST PUr204695 SEPT 2005 SRVCS-STORM WATER SRVCS MOP 45749 SWEEPER BRACKET TIRES RETIREE HEALTH BENEFITS NOV 2005 204696 204697 204698 204699 INV#H56489315/H60866934-PROJECTOR/INKJE 204700 204701 204702 BOOK TRUCK, LIBRARY QUIET, 2 FLAT SMIP FEES FOR JUL 01 - SEP 30, 2005 chk date amount 11/1/05 10/26/05 10/27/05 10/31/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 948.68 170.51 44.62 359.40 250.28 76.50 248.69 1,585.73 430.92 396.46 145.00 981.51 1,372.82 184.24 1,807.00 4,430.00 293.03 500.00 564.07 17,282.37 159.05 989.37 120.00 3,648.91 8,704.72 1,441.83 City of National City WARRANT REGISTER # 18 11/1/05 Pavee DICERCHIO DIXIELINE LUMBER CO. DREW FORD ENTERPRISE GROUP EWERT, PHILLIP FEDEX FRANK & SON PAVING INC. GEORGE H WATERS NUTRITION CN GIBBS GRAINGER HAMILTON HEARTLAND COMM. FAC. AUTHOR HOLIDAY INN - SOUTH BAY HOLLOWAY, WILLIAM HOME DEPOT/GECF HUERTA HYDRO-SCAPE PRODUCTS INC. JANNEY & JANNEY ATTY SRVC, IN JAYNES CORPORATION JAYNES CORPORATION OF AMERIC KIMBLE LOPEZ MATIENZO MAYER REPROGRAPHICS MAYER REPROGRAPHICS MCCABE MENTAL HEALTH SYSTEMS INC Description RETIREE HEALTH BENEFITS NOV 2005 MOP 45707 WALL CABINET MOP 49078 AUTO PART COPY PAPER RETIREE HEALTH BENEFITS NOV 2005 FEDEX PRIORITY OVERNIGHT 9/27/05 MAR 2005 SRVCS NC STREET RESURFACING CITY MANAGER'S OFFICE MEETING 9/20/05 chk no 204703 204704 204705 204706 204707 204708 204709 204710 REIMB/SEMINAR & MEMB TO PAPA/GIBBS, R.204711 MOP 65179 JACKET RETIREE HEALTH BENEFITS NOV 2005 ARCH WIRELESS SRVCS .TUN/JUL/AUG 2005. 204712 204713 204714 ACCOMODATION/JEAN PACE -CONSULTANT 204715 RETIREE HEALTH BENEFITS NOV 2005 204716 32 GAL ROUGHNECK WO/WHEELS-EVERGREI204717 REIMB/ASE TESTING/HUERTA, R. 204718 MOP 45720 ROTOR POPUP 204719 PRIORITY FILING PEOPLE V BONNER 10/18/05204720 ESCROW RETENTION ACCT#2010160619 204721 SEPT 2005 SRVCS-NC LIBRARY CONSTRUCTI(204722 RETIREE HEALTH BENEFITS NOV 2005 204723 T&A #988 121 B AVENUE RETIREE HEALTH BENEFITS NOV 2005 REPRODUCTION OF PRINTS SPEC 05-4 REPRODUCTION OF PRINTS SPEC 05-4 RETIREE HEALTH BENEFITS NOV 2005 CACHAO EVENT 204724 204725 204726 204727 204728 204729 chk date 11/1/05 amount 70.00 11/1/05 990.59 157.80 1,924.74 160.00 36.79 33,238.72 27.65 100.00 31.18 100.00 474.87 214.50 150.00 140.19 82.00 540.58 80.00 5,193.00 98,674.00 300.00 100.00 100.00 246.15 124.83 280.00 500.00 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 2 Payee MORRISON City of National City WARRANT REGISTER # 18 11/1/05 Description chk no ORTRLY DINNER BY CITY OF CORONADO/RC204730 MYERS RETIREE HEALTH BENEFITS NOV 2005 NAPA AUTO PARTS MOP 45735 AUTOMOTIVE PARTS NATIONAL CITY DETAIL SHOP MOP 45737 VEHICLE DETAIL NC SENIOR NUTRITION PROGRAMS NCFD DEDICATION CEREMONY 6/21/05 NCFFA NFPA FULFILLMENT CENTER NOSAL, WILLIAM A. OFFICE TEAM ONE SOURCE DISTRIBUTORS PAPA 'ARKER NEWS SERVICE PARKHOUSE TIRE PARTS PLUS AUTOSTORE #713 PAW PERRY FORD POTTER POWERSTRIDE BATTERY CO INC PRUDENTIAL OVERALL SUPPLY PUBLIC EMP RETIREMENT SYSTEM RAY RUIZ SAN DIEGO GAS & ELECTRIC SAN DIEGO GAS & ELECTRIC SAN DIEGO GAS & ELECTRIC SAN DIEGO GAS & ELECTRIC AN DIEGO GAS & ELECTRIC 2006 SHIFT CALENDARS FROM NCFFA 204731 204732 204733 204734 204735 NFCSS INTERNET SINGLE USER SUBSCRIPTIC204736 RETIREE HEALTH BENEFITS NOV 2005 204737 TEMPORARY HELP ROSE TOMAS W/E 9/23/05 204738 MOP 67256 SHIELD 204739 PAPA REGISTRATION/ERICA IBARRA KNSD-TV VHS VIDEO 204740 204741 TIRES FOR CITY FLEET FOR FISCAL YEAR 204742 MOP 64946 PULLEY RETIREE HEALTH BENEFITS NOV 2005 MOP 45703 ALIGNMENT RETIREE HEALTH BENEFITS NOV 2005 MOP 67839 BATTERIES MOP 45742 MOPS SERVICE PERIOD 10-05-4 RETIREE HEALTH BENEFITS NOV 2005 RETIREE HEALTH BENEFITS NOV 2005 ELECTRIC BILL/FACILITIES#86482714057 ELECTRIC BILL/FACILITIES#94282909927 ELECTRIC BILL/FACILITIES#68199629265 ELECTRIC BILL/FACILITIES#10441036857 ELECTRIC BILL/STREET#76860974845 204743 204744 204745 204746 204747 204748 204749 204750 204751 204752 204753 204754 204755 204756 chk date amount 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 50.00 140.00 1,234.95 65.00 1,060.00 207.00 625.50 921.86 166.08 542.61 55.00 80.81 168.71 174.33 340.00 110.18 150.00 306.35 472.29 61,862.73 190.00 310.00 11,128.56 10,985.59 3,897.78 3,398.92 1,436.35 3 City of National City WARRANT REGISTER # 18 11/1/05 Payee SAN DIEGO GAS & ELECTRIC SAN DIEGO GAS & ELECTRIC SAN DIEGO PARALEGAL ASSO SAN DIEGO SPEEDO TACH, INC. SCHOOL -AGE NOTES, INC. SHORT, CRAIG SILVA SMART & FINAL SNOW SOUTHERN CALIF TRUCK STOP SWEETWATER KIWANIS TELLO TETRA TECH, INC. TETRA TECH, INC. THE LIGHTHOUSE, INC. THOMPSON PUBLISHING GROUP, I TOPECO PRODUCTS TRANSPORATION & LAND USE TRAUMA INTERVENTION PROG U.S. IDENTIFICATION MANUAL US STERLING CAPITAL CORP VALLEY INDUSTRIAL SPECIALTIES VULCAN MATERIALS COMPANY WESTFLEX INDUSTRIAL WURBS ZARATE ZIETLOW, DAVID Description ELECTRIC BILL/FACILITIES#10439934345 ELECTRIC BILL/STREET#07385071072 ANNUAL SDPA MEMBERSHIP/ORCUTT SPEEDOMETER CALIBRATION FOR CITY BOOKS (ELLI) RETIREE HEALTH BENEFITS NOV 2005 LUCE FORWARD SEMINAR 10/20/05 MOP 45756 COUNCIL WATER TRAVEL (LIT. INIT. XIV) MOP 45758 DEISEL KIWANIS OCT-DEC 2005 MEMBERHHIP TRAVEL (LIT. INIT. XIV) T&A #746 601 W 12TH STREET T&A #746 601 W 12TH STREET MOP 45726 HARNESS/TUBE FAIR LABOR HANDBOOK 2006 RENEWAL MOP 63849 WASHERS/NUTS chk no 204757 204758 204759 204760 204761 204762 204763 204764 204765 204766 204767 204768 204769 204770 204771 204772 204773 CONF REGSTRTN LATINO NEW URBANISM/Ih204774 HEROES ON SCENE DINNER RESERVTION/JUT204775 SUBSCRIPTION RENEWAL/MANUAL#27744 TRADE SETTLING SRVCS 10/08-10/14/05 MOP 46453 - PLUMBING PARTS ASPHALT FOR FISCAL YEAR 2006 MOP 63850 PAINT LID GASKET 204776 204777 204778 204779 204780 REIMB FOR CHAMBER BREAKFAST 10/19/05 204781 QUARTERLY DINNER BY CITY OF CORONAD(204782 RETIREE HEALTH BENEFITS NOV 2005 204783 chk date amount 11/1/05 634.81 11/1/05 136.20 11/1/05 75.00 11/1/05 230.00 11/1/05 383.35 11/1/05 300.00 11/1/05 50.00 11/1/05 39.60 11/1/05 222.94 11/1/05 544.08 11/1/05 244.00 11/1/05 56.74 11/1/05 2,637.01 11/1/05 660.00 11/1/05 766.34 11/1/05 403.50 11/1/05 74.85 11/1/05 50.00 11/1/05 75.00 11/1/05 88.48 11/1/05 99.00 11/1/05 2,091.42 11/1/05 221.25 11/1/05 115.21 11/1/05 50.00 11/1/05 50.00 11/1/05 150.00 4 Payee BANK OF AMERICA BOHDAN & DOUCETTE LLP CITY OF NATIONAL CITY CROWNE PLAZA HARRIS CITY OF NATIONAL CITY SCACEO BLUE SHIELD OF CA BOOT WORLD CINTAS CORPORATION #694 COUNTY OF SAN DIEGO -1OUNTY OF SAN DIEGO DIRECT TV City of National City WARRANT REGISTER # 18 11/1/05 Description BOA CHRGS FOR #2805 PROF SRVCS FOR OCTOBER 2005 PETTY CASH chk no 204784 204785 204786 ADV LODGING/PARKING-MICHAEL HARRIS 204787 ADV MEALS/MILEAGE-HARRIS-DARE OFFCR 204788 PETTY CASH FOR BLDG DEPT 204789 REGSTRTN SCACEO CLASSES/SALVADOR G11204790 DENTAL 1NSUR. - NOV. '05 BOOTS - RUTH ROGERS MAINT LAUNDRY SERVICE PAYROLL PPE 10/15/05 - JOSE VAZQUEZ PAYROLL PPE 10/15/05 - SHERRY LOGEL DIRECT TV 10/13/05 - 11/12/05 FIRST ADVANTAGE CORPORATION BACKGROUND CHECK GIBBS OFFICE SUPPLIES MCDONALD TRANSIT ASSOCIATES : MANAGEMENT FEE - OCT. '05 NATIONAL CITY PUBLIC LIBRARY LIBRARY DONATION PPE 10/15/05 NATL CITY CHAMBER OF COMMER ADVERTISING - NAVY SHIP RECEPTION NORTHWEST PUMP & EQUIPT CO ORIENTAL TRADING COMPANY, I PITNEY BOWES CREDIT CORP SAN DIEGO BUS DRIVERS UNION SAN DIEGO COUNTY SHERIFF SMART & FINAL SUPERIOR CLEANING EQUIPMENT 204791 204792 204793 204794 204795 204796 204797 204798 204799 204800 204801 1 514100-210 PAPER VR TLS -350 (4) ROLLS 204802 EMPLOYEE END OF YR PARTY EQUIP TAX/FILING FEE UNION DUES PAYROLL PPE 10/01/05 & 10/15/05 204803 204804 204805 204806 CHILI COOKOFF SUPLS-TRANSIT BOOTH EVE204807 WATER FLOW & RECYCLE SYSTEM REPAIRS 204808 chk date amount 11/1/05 1,484.88 11/1/05 7,098.00 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 11/1/05 1,400.69 1,356.00 536.10 100.00 130.00 524.81 67.86 131.64 50.00 23.04 74.98 75.13 153.91 12,776.40 29.85 520.00 1,223.19 373.45 11.44 1,310.80 100.00 242.91 502.91 Total Workers compensation checks $ 332,000.67 City of National City WARRANT REGISTER # 18 11/1/05 Payee Description chk no chk date amount 10715 10/26/05 9.25 10716 10/26/05 23.37 10717 10/26/05 120.28 10718 10/26/05 147.00 10719 10/26/05 147.61 10720 10/26/05 13.25 10721 10/26/05 25.00 10722 10/26/05 4.61 10723 10/26/05 4.61 10724 10/26/05 12.92 10725 10/26/05 83.94 10726 10/26/05 83.94 10727 10/26/05 83.94 10728 10/26/05 300.00 10729 10/26/05 74.73 10730 10/26/05 425.96 10731 10/26/05 1,346.38 10732 10/26/05 302.91 10733 10/26/05 167.16 10734 10/26/05 400.00 10735 10/26/05 32.30 Total $ 3,809.16 6 Payee City of National City WARRANT REGISTER # 18 11/1/05 Description chk no chk date amount Grand Total 335,809.83 TRANSIT WARRANTS CHECK#204791-204808 18 CHECKS $ 18,192.32 PAID OUT HUD GUARANTEED LOAN FUND ACCT FOR THE CONSTRUCTION OF THE NEW FIRE STATION. CHECK#200166 1 CHECK $ 948.68 7 City of National City WARRANT REGISTER #18 11/1/05 001 GENERAL FUND 105 PARKS MAINTENANCE FUND 109 GAS TAXES FUND 111 P.O.S.T. FUND 125 SEWER SERVICE FUND 126 FIRE DEPT ACTIVITIES FUND 136 TINY TOT CLASSES FUND 196 CAPITAL PROJECT RESERVE 212 PERSONNEL COMPENSATION FUND 225 ENGLISH LANGUAGE LITERACY IN 241 NATIONAL CITY LIBRARY STATE GR 242 N. CITY LIBRARY MATCHING FUND 250 NEW FIRE STATION CONSTRUCTION 253 RECREATIONAL ACTIVITIES FUND 284 Literacy Initiatives XIV 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 SYS 1'EMS MAINTENA 630 OFFICE EQUIPMENT DEPRECIATION 632 GENERAL ACCOUNTING SERVICES 643 MOTOR VEHICLE SVC FUND 726 ENGINEERING/PUBLIC WORKS T & A TOTAL 88,607.81 1,255.62 2,427.71 2,096.50 17,327.49 400.67 129.02 247.36 4,908.37 383.35 73,939.22 39,813.41 948.68 68.77 279.68 130.00 192.96 31,181.99 18,480.49 34,513.27 3,809.16 2,319.59 -161.63 3,648.91 199.01 5,265.41 3,397.01 335,809.83 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 D 4 CTOR 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 15TH DAY OF NOVEMBER 2005. AYES NAYS ABSENT City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE Novembet 15, 2005 AGENDA ITEM NO. 16 (I-TEM TITLE Requesting approval of the City Council to cancel the January 3, 2006 City Council Meeting PREPARED BY DEPARTMENT Lin Wurbs C;?.?��,� City Manager Asst. City Mager 336-4240 EXPLANATION Due to the holiday break the last week of December, we are requesting that the January 3, 2006 Council meeting be cancelled. Environmental Review ✓ N/A Financial Statement Account No. STAFF RECOMMENDATION BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) N/A Resolution No. A-200 (9/80) City of National City, California COUNCIL AGENDA STATEMENT rdEETING DATE November 15, 2005 17 AGENDA ITEM NO. ITEM TITLE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADDING CHAPTER 10.58 TO THE NATIONAL CITY MUNICIPAL CODE TO REGULATE BUSINESS LICENSES AND PRACTICES FOR "DEFERRED DEPOSIT TRANSACTION BUSINESSES", ALSO KNOW AS "PAYDAY LENDERS", AND REPEALING ORDINANCE NO. 2004-2254 PREPARED BY George H. Eiser, III (tr DEPARTMENT City Attorney Ext. 4221 EXPLANATION This item was last considered at the City Council meeting of August 16, 2005. Please see memorandum and attachments to companion agenda item entitled: "AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADDING CHAPTER 10.58 TO THE NATIONAL CITY MUNICIPAL CODE TO REGULATE BUSINESS LICENSES AND PRACTICES FOR "DEFERRED DEPOSIT TRANSACTION BUSINESSES", ALSO KNOW AS "PAYDAY LENDERS", AND REPEALING ORDINANCE NO. 2004-2254" It is recommended that this ordinance be adopted in "due course" (i.e., first and second reading) concurrently with adoption of the companion urgency ordinance, which takes effect immediately. Environmental Review Financial Statement N/A >STAFF RECOMMENDATION First reading of ordinance. X N/A Account No. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) Proposed Ordinance Resolution No. A-200 (9/80) 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 AND PRACTICES OF "DEFERRED DEPOSIT TRANSACTION BUSINESSES", ALSO KNOWN AS "PAYDAY LENDERS", AND REPEALING ORDINANCE NO. 2004-2254 WHEREAS, National City has been very proactive in recent years in efforts to revitalize the community. Most recently, these efforts have been manifested in actions such as the adoption of the Downtown Specific Plan, the current consideration of the West Side Specific Plan, and the proposals for the Mexican Village Project along a portion of Highland Avenue, and the Filipino Village Project along a portion of Plaza Boulevard; and WHEREAS, the City has recently experienced a proliferation of payday lending businesses, which have become a source of concern for the City Council. The City Council has received input on this issue from a number of consumer protection organizations, including the California Reinvestment Coalition (CRC), a coalition of more than 200 organizations advocating increased access to bank services, loans and investments for Califomia's low-income communities and communities of color. The City Council has considered the report of the CRC dated March, 2005, entitled "The Financial Divide: An Uneven Playing Field" which report discusses the impact of payday lending businesses in California communities. The factual findings in the CRC report include the following: • In lower income communities such as National City, banks have removed their bank branches, which offer fairly -priced lending opportunities, and instead have financed the establishment of payday lending businesses. • Payday lenders may charge up to a 500+ percent annual percentage rate. • Payday lending businesses impact women and African Americans disproportionately. • Persons of low income pay more for mainstream financial products while being ignored by mainstream financial institutions. • Military personnel are particularly impacted by payday lenders; and WHEREAS, the CRC report recommends that cities and counties restrict the proliferation of payday lending businesses; and WHEREAS, the City Council finds that payday lending businesses will be proposed to be newly established or relocated within the City; and WHEREAS, existing City regulations do not adequately address the potential adverse effects of the proliferation of payday lending businesses in the community; and WHEREAS, the City Council supports the goal of increasing access to bank services, loans and investments for the people of National City. The City Council finds and determines that the existence of an excessive number of payday lending businesses is 2005 Ordinance 1 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders counterproductive to achieving this goal, and that no regulations currently exist concerning the proliferation of such businesses within the City. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of National City as follows: Section 1. That Title 10 of the National City Municipal Code is hereby amended by adding Chapter 10.58 to read as follows: Chapter 10.58 ADVANCE PAYDAY LOAN BUSINESSES AND TRANSACTIONS Sections: 10.58.010 Findings and purpose 10.58.020 Definitions 10.58.030 Conduct of payday lending business 10.58.040 Operating and licensing restrictions 10.58.050 Enforcement and penalty 10.58.060 Severability 10.58.010 Findings and purpose. A. The California Reinvestment Coalition ("CRC") is 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. B. The City Council has considered the report of the CRC dated March 2005, entitled "The Financial Divide: An Uneven Playing Field", which report discusses the impact of deferred deposit lending businesses in California communities. In said report, the CRC recommends that cities and counties restrict the proliferation of deferred deposit lending businesses. C. In enacting this Chapter, the City Council supports the goal of increasing access to bank services, loans and investments for the people of National City. The City Council finds and determines that the existence of an excessive number deferred deposit lending businesses is counterproductive to achieving this goal, and that no regulations currently exist concerning the proliferation of such businesses within the city. 10.58.020 Definitions. As used in this Chapter, the following terms have the following meanings: A. "Deferred deposit lender' as defined in California 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, "deferred deposit lender" does not include a state or federally chartered bank, thrift, savings association, industrial loan company, or credit union. "Deferred deposit lender" 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. "Deferred deposit lender" also does not include an employee 2005 Ordinance 2 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders regularly employed by a "deferred deposit lender" at the deferred deposit lender'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. B. "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. C. "Deferred deposit originator" means a person who offers, originates, or makes a deferred deposit transaction. D. "Payday lender" means any person who meets the definition of "deferred deposit lender" or "deferred deposit originator" above. E. "Payday lending business" means any person who is engaged in business and meets the definition of "deferred deposit lender" or "deferred deposit originator". F. "Person" means an individual, a corporation, a partnership, a limited liability company, a joint venture, a government entity, or a political subdivision of a government entity. 10.58.030 Conduct of payday lending business. Each payday lending business within the City shall conduct its business according to the following mandatory requirements: A. A contract between a payday lending business and a customer shall fully outline the terms of the payday advance transaction. The cost of the service fee must be described both as a dollar amount and as an annual percentage rate. B. A payday lending business shall not advertise the payday advance service in any false, misleading, or deceptive manner. C. A payday lending business shall implement procedures to inform consumers of the intended use of the payday advance service. These procedures will include notifying consumers that a payday advance is a short-term cash flow tool not designed as a solution for longer term financial problems, and informing customers of the availability of credit counseling services. D. A payday lender shall give its customers the right to rescind, at no cost, a payday advance transaction on or before the close of the following business day. E. A payday lender shall collect past due accounts in a professional, fair, and lawful manner, and shall not use unlawful threats, intimidation, or harassment to collect accounts. F. With respect to loans made to military personnel, a payday lender shall not contact the military chain of command of a military customer in an effort to collect on the loan. G. This section is regulatory. 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, and shall observe all requirements of applicable state law and this Chapter. 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. 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). Existing valid business licenses may be renewed or transferred or reissued upon a change of ownership or location. Once a business license is revoked, it may not be reissued to any other person. 10.58. 050 Enforcement and penalty. A. It is unlawful to violate any of the prohibitions of this Chapter. Except as provided in subsection B, each violation shall be prosecuted as a misdemeanor, with a penalty of a $1,000 fine or imprisonment not to exceed six months, or both. Each day that a violation continues to exist shall constitute a separate 2005 Ordinance 3 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders 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 enforced through 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 6.04.170. C. The maintenance of a payday lending business in violation of this Chapter or state law shall further 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 initiate and maintain any criminal, civil and administrative actions, or any combination, pertaining to the prosecution and civil abatement of violations under this Chapter, including initiation of civil actions pertaining to unfair business practices under Business and Professions Code section 17200, if applicable, when violations of this Chapter occur. 10.58.060 Severability. If any provision of this Chapter or its application is found by a court of competent jurisdiction in the United States to be invalid or superceded by state of 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 City 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: Michael R. Dalla City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney Nick Inzunza, Mayor 2005 Ordinance 4 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders City of National City Office of the City Attorney 1243 National City Boulevard., National City, CA 91950-4301 George H. Eiser, III . City Attorney (619) 336-4220 Fax: (619) 336-4327 TDD: (619) 336-1615 TO: Mayor and City Council FROM: City Attorney SUBJECT: Ordinance Regulating Payday Lenders DATE: November 15, 2005 INTRODUCTION 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, and directed staff to review alternatives with the Planning Commission. The moratorium was extended on January 6, 2004, and again on November 1, 2004, for one additional year. The moratorium will expire on November 16, 2005. Staff now recommends that an ordinance be adopted to regulate such businesses under consumer regulation measures with Title 10 of the Municipal Code, rather than as a land use regulation under Title 18. FACTUAL BACKGROUND National City has been very proactive in recent years in efforts to revitalize the community. Most recently, these efforts have been manifested in actions such as the adoption of the Downtown Specific Plan, the current consideration of the West Side Specific Plan, and the proposals for the Mexican Village Project along a portion of Highland Avenue and the Filipino Village Project along a portion of Plaza Boulevard. The City has recently experienced a proliferation of payday lending businesses, which have become a source of concern for the City Council. The City Council has received input on this issue from a number of consumer protection organizations, including the California Reinvestment Coalition (CRC), a coalition of more than 200 organizations advocating increased access to bank services, loans and investments for California's low-income communities and communities of color. The City Council has considered the report of the CRC dated March, 2005, entitled "The Financial Divide: An Uneven Playing Field" which report discusses the impact of payday lending businesses in California communities. The factual findings in the CRC report include the following: • In lower income communities such as National City, banks have removed their bank branches, which offer fairly -priced lending opportunities, and instead have financed the establishment of payday lending businesses. 9 Recycled Paper Ordinance Regulating Payday Lenders November 15, 2005 Page 2 • Payday lenders may charge up to a 500+ percent annual percentage rate. • Payday lending businesses impact women and African Americans disproportionately. • Persons of low income pay more for mainstream financial products while being ignored by mainstream financial institutions. • Military personnel are particularly impacted by payday lenders. The CRC report recommends that cities and counties restrict the proliferation of payday lending businesses. THE PROPOSED ORDINANCE The proposed ordinance would add Chapter 10.58 to the Municipal Code to regulate payday lending businesses by 1) allowing no more than 10 business licenses to be issued for such businesses in the entire city, and 2) imposing certain "best practices" requirements upon such businesses. The numerical limitation was derived from a recommendation contained in a March, 2005 study by the California Reinvestment Coalition (CRC), a consumer protection organization. There are currently 10 payday lenders in the City. The best practices were derived from the best practices established by the Community Financial Services Association (CFSA), an industry association. The best practices required by the proposed ordinance are as follows: a) A contact between a payday lending business and a customer shall fully outline the terms of the payday advance transaction. The cost of the service fee must be described both as a dollar amount and as an annual percentage rate. b) A payday lending business shall not advertise the payday advance service in any false, misleading, or deceptive manner. c) A payday lending business shall implement procedures to inform consumers of the intended use of the payday advance service. These procedures will include notifying consumers that a payday advance is a short-term cash flow tool not designed as a solution for longer term financial problems, and informing customers of the availability of credit counseling services. d) A payday lender shall give its customers the right to rescind, at no cost, a payday advance transaction on or before the close of the following business day. Ordinance Regulating Payday Lenders November 15, 2005 Page 3 e) A payday lender shall collect past due accounts in a professional, fair, and lawful manner, and shall not use unlawful threats, intimidation, or harassment to collect accounts. f) With respect to loans made to military personnel, a payday lender shall not contact the military chain of command of a military customer in an effort to collect on the loan. The section of the ordinance imposing the aforementioned best practices would be "regulatory", meaning that it could be enforced through civil or administrative action only, such as by revocation of a business license, and not by criminal enforcement action. Previous versions of the ordinance and different concepts for regulating this industry have been considered by the Mayor and Vice -Mayor acting as a City Council Committee, by City and CDC staff, by representatives of the U.S. Navy, by a number of consumer protection organizations, including the California Reinvestment Coalition (CRC), and by representatives of the payday lending industry, including the California Financial Service Providers Association (CFSP) and the Community Financial Services Association (CFSA). Earlier drafts of the ordinance were considered that would have imposed significantly stricter regulations upon payday lenders. Coming from the other side of the issue, the CFSP and CFSA proposed an ordinance which would impose a 1,000 foot distance separation requirement between payday lending businesses, provided that the Council could grant an exemption to the separation requirement by approval of a conditional use permit (although this would probably constitute a "use variance", contrary to state law). RECOMMENDATION It is recommended that the proposed ordinance, which is not overly -restrictive yet is designed to accomplish the goals of the City Council in regulating the payday lending industry, be adopted. It is further recommended that in addition to this "due course" ordinance, the ordinance be adopted as an urgency ordinance, to take effect immediately, as being necessary for the immediate preservation of the public peace, health and safety, as authorized by Section 36937(b) of the California Government Code. The urgency ordinance is a companion item on the agenda. GEORGE H. EISER, III City Attorney GHE/gmo MEETING DATE City of National City, California COUNCIL AGENDA STATEMENT November 15, 2005 SECOND READING 18 AGENDA ITEM NO. (-ITEM TITLE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING TITLE 10 OF THE NATIONAL CITY MUNICIPAL CODE BY ADDING CHAPTER 10.63 TO REGULATE PROXIMITY OF SEX OFFENDERS TO CHILDREN'S FACILITIES PREPARED BY George H. Eiser, III EXPLANATION Ext.4221 DEPARTMENT City Attorney Please see attached memorandum. 9 Environmental Review Financial Statement N/A X N/A Account No. STAFF RECOMMENDATION Adopt ordinance. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) Memorandum Proposed ordinance Resolution No. A-200 (9/80) City of National City Office of the City Attorney 1243 National City Boulevard., National City, CA 91950-4301 George H. Eiser, III . City Attorney (619) 336-4220 Fax: (619) 336-4327 TDD: (619) 336-1615 TO: Mayor and City Council FROM: Jodi L. Doucette, Special Counsel VIA: George H. Eiser, III, City Attorney SUBJECT: Sex Offender Proximity Ordinance DATE: October 24, 2005 Introduction In response to direction from the City Council, the proposed ordinance has been prepared in order to reduce the potential risk of harm to children of the community from sex offenders. The proposed ordinance would add Chapter 10.63 to the Municipal Code to prohibit sex offenders from being on or within 300 feet of a public or private school for children, a center or facility that provides day care or children's services, a video arcade, a playground, park or an amusement center. Discussion Existing California law provides an extensive scheme for regulating the placement of juvenile and adult sex offenders upon their release from incarceration. California Penal Code, Section 3003, provides that an inmate who is released on parole shall be returned to the county of the last legal place of residence of the inmate prior to his or her incarceration, absent extraordinary circumstances. Section 3003(g) further provides that a such an inmate who is released on parole for the commission of lewd or lascivious acts or continuous sexual abuse of a child shall not be placed nor reside for the duration of the period of parole within 1/4 mile of a private or public school for kindergarteners through eighth graders. A bill (SB 1051) was introduced in February 2005 to amend Penal Code Section 3003(g) for expanding the distance restriction to one mile. The Senate voted to amend the bill and approved the bill in April, as amended, to expand the distance to %2 mile. Moreover, California Welfare and Institutions Code, Section 6600 et seq., the Sexually Violent Predators Act, provides a comprehensive and coordinated system of placements after incarceration for adults and juveniles adjudicated to be sexually violent predators. The Act generally requires at least a two year commitment after release from incarceration to the State Department of Mental Health for treatment in a secure facility. Section 6608 allows a sexually violent predator to petition for a conditional release to community outpatient treatment. In 2004, 9 Recycled Paper Section 6608.5 was added, requiring that a person who is conditionally released shall be returned to the county of the last legal place of residence of the person prior to his or her incarceration, absent extraordinary circumstances. Specifically related to juveniles adjudicated a ward of the juvenile court for a sexually related offense, Health and Safety Code, Section 1500 et seq., allows such minors adjudicated wards of the juvenile court to be placed into community care facilities. Senate Bill 1051, referenced above, also proposes to add a Section 1519.6 to the Health and Safety Code to prohibit a licensed community care facility that receives state funds and is located within %z half mile of any public or private school from accepting a juvenile who has been adjudicated a ward of the court for a sexually related offense. State law clearly regulates certain residential placements of such offenders and preempts local jurisdictions from placing limits upon the residences of these offenders. Despite such provisions and other related residential regulations, state law, however, appears to lack specific regulations that would prohibit sex offenders from frequenting locations that are primarily used by, or designed for use by, children. These would include preschools, childcare facilities, schools other than grades kindergarten through eighth, video arcades, parks, playgrounds, other similar locations. The existing law also does not regulate such offenders after the terms of their parole, conditional release or juvenile placements or terms end. As such, the City of National City may place restrictions on sex offenders as to their frequenting certain facilities designed primarily for children's use where the state has failed or chosen not to act. This is not intended to conflict with existing state law but to increase the prohibitions of such offenders to a broader area. Restrictions on the right to intrastate travel, as this ordinance may arguably impose, have also been addressed in state law. The right to intrastate travel, including intra-municipal travel, is recognized as a basic human right protected by Article I, Sections 7 and 24 of the California Constitution. Probation restrictions barring a criminal from designated areas have been questioned if overly broad. (See, for example, In re White (1997) 97 Ca1.App.3d 141.) Since the White decision, however, the courts have taken more liberal viewpoints on permitting restrictions on the right to travel. The courts have stated that as long as there is a rational relationship between the purpose of the ordinance and a legitimate government objective,. the law may be upheld. (Tobe v. City of Santa Ana (1995) 9 Cal.4`h 1069, 1099.) In the Tobe case, the court stated that the right to travel does not endow a person the "right to live or stay where one will." (Id. At pg.1103.) The proposed ordinance language was drafted with right to travel concerns in mind and was narrowly tailored to achieve the legitimate purpose of protecting the children of our community. It does not restrict large areas or the right to travel, per se, but imposes site specific restrictions. The purpose of this regulation is to reduce the potential risk of harm to children of our community by impacting the ability for sex offenders to be in contact with unsuspecting children. This is especially in light of the transitory population in our community which may make difficult the prevention of further recurrence where the victims may fear or be unable to report such crimes. 2 Because the City's geographical size is eight square miles and the City may not prohibit sex offenders from residing in this City altogether, the prohibited distance of 300 feet from such children's facilities was determined to be appropriate. Recommendation In addition to the City Attorney's Office, the Chief of Police has reviewed the proposed ordinance and recommends its adoption. GEORGE H. EISER III, City Attorney 3 ORDINANCE NO. 2005 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADDING CHAPTER 10.63 TO THE NATIONAL CITY MUNICIPAL CODE TO REGULATE PROXIMITY OF SEX OFFENDERS TO CHILDREN'S FACILITIES BE IT ORDAINED by the City Council of the City of National City as follows: Section 1. Title 10 of the National City Municipal Code is hereby amended by adding Chapter 10.63 to read as follows: Chapter 10.63 SEX OFFENDERS PROXIMITY TO CHILDREN'S FACILITIES Sections: 10.63.100 Purpose. 10.63.110 Definitions. 10.63.120 Regulations. 10.63.130 Violations. 10.63.100 Purpose. Sex offenders pose a clear threat to the children residing, or visiting in our community. Because convicted sex offenders are more likely than any other type offender to reoffend for another sexual assault, the City Council of the City of National City desires to impose safety precautions in furtherance of the goal of protecting our children. The purpose of this regulation is to reduce the potential risk of harm to children of our community by impacting the ability for sex offenders to be in contact with unsuspecting children in locations that are primarily designed for use by, or are primarily used by children, namely, the grounds of a public or private school for children, a center or facility that provides day care or children's services, a video arcade, a playground, park, or an amusement center. The City of National City desires to add location restrictions to such offenders where the state law is silent. 10.63.110 Definitions. A. "Sex Offender" means a person who has been required to register with a governmental entity as a sex offender. B. "Children" means those person's who are under the age of eighteen (18) years of age. 10.63.120 Prohibitions. A sex offender is prohibited from being on or within three hundred feet (300') of a public or private school for children, a center or facility that provides day care or children's services, a video arcade, a playground, park, or an amusement center. This prohibition does not apply to a sex offender's place of residence when regulated by state law. 2005 Ordinance 1 Sex Offenders Proximity to Children's Facilities 10.63.130 Violations. Any person violating this section is guilty of a misdemeanor. A misdemeanor is punishable by a fine up to one thousand dollars ($1,000) or by imprisonment for up to one year, or both. The city attorney may reduce the violation to an infraction. An infraction is punishable by (1) a fine not exceeding one hundred dollars ($100) for a first violation; (2) a fine not exceeding two hundred dollars ($200) for a second violation; (3) a fine not exceeding five hundred dollars ($500) for each additional violation of this provision. A person is guilty of a separate offense for each and every day during which a violation occurs. PASSED and ADOPTED this day of 2005. ATTEST: Michael Della, City Clerk APPROVED AS TO FORM: v f T�ac aRr George H. Eiser, III City Attorney 2005 Ordinance 2 Nick Inzunza, Mayor Sex Offenders Proximity to Children's Facilities City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE NDvember 15, 2005 AGENDA ITEM NO. 19 ITEM TITLE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING THE \ MUNICIPAL CODE BY ADDING CHAPTER 10.26 THERETO, PERTAINING TO THE REGISTRATION OF 1 RENTERS AT PUBLIC STORAGE FACLLITIES PREPARED BY Graham Young (858) 616-4449 (619) 250-1735 (619) 520-0061 EXPLANATION DEPARTMENT Please see attached explanation. Police Environmental Review ✓ N/A Negative Declaration Financial Statement N/A Approved By: Finance Director Account No. STAFF RECOMMENDATION Adopt the attached ordinance. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) Explanation Proposed Ordinance Resolution No. • A-200 (9/99) CONTACT PERSON Detective Graham Young NTF-3 / NCPD (858) 616-4449 (619) 250-1735 (619) 520-0061 National City Municipal Code 10.26.130B EXPLANATION Over the last couple of years, law enforcement intelligence units have discovered terrorist groups within the United States, soliciting and recruiting people in prison and those being released on supervised release programs (parole) to assist terrorists in terrorist activities. During a recent incident (law enforcement investigation) involving public storage facility personnel and management, I became alarmed with the information discovered in respect to the registration of rental units to unknown individuals in this post 9/11 climate. It was discovered that personnel working at a certain public storage facility within the City of National City, were renting storage units to individuals without obtaining any identification from the individual actually renting the storage unit. Agents learned through their investigation that two individuals went into the storage facility. Subject number one (a parolee) wished to rent the storage unit, but did not have identification. Subject number two, agreed to rent the storage unit for subject number one. Subject number two let a third subject, who subject number two knows nothing about, store unknown property in the rented storage unit. I became alarmed and suspicious of this situation and the actions of the individuals renting the storage unit, knowing the proximity of the public storage facility to a practically open border with Mexico, an intersection of two major highways located feet away from the storage facility (California 54 and Interstate 5), a mass transit system (San Diego Trolley) located feet away, the United States Naval station located less than a mile away, a major port on the other side of the freeway, and multiple businesses and residences surrounding the public storage facility. I believed this could have been a prime target for a terrorist act to take place. I looked through the Municipal Code and noticed "Storage Facilities" were not addressed by municipal legislation. I believe, that in the best interest of public safety for the citizens of the City of National City and surrounding cities, we as a city, need a Municipal Code addressing the registration of renters at public storage facilities. The Municipal Code would be much like the Motel/Hotel Municipal Code (NCMC 10.40) developed by the Neighborhood Policing Team during that unit's project to thwart vice activities at and around hotels/motels in the City of National City. The proposed ordinance would require the storage facility to incorporate three simple guidelines: • Every renter must furnish to the operator of a public storage facility valid photo identification as part of the registration for the hire of storage units. The renter must identify all authorized or proposed occupants of the storage unit hired to the operator. • The operator of a public storage facility is required to retain a copy of the identification / information of the renter and retain the copy of the identification for a year after the termination date of the rental agreement. • An operator of a storage facility will provide law enforcement agents conducting an investigation with the renter's identification upon request. As being a part of the San Diego County Integrated Narcotics task Force (NTF), I have had the opportunity to participate in investigations involving public storage facilities where extremely dangerous materials included, but were not limited to; precursors and wastes of dangerous drug production, weapons, and ammunition and explosives (dynamite and hand grenades). The storage facility had no documentation or identification of individuals who rented the storage unit that contained the contraband. Some of the explosives' condition had degenerated to such dangerous levels (dynamite started to crystallize on the outer casing), that a slight movement could have set off an explosion. In a separate investigation, I responded to a storage unit where the owner of the facility physically inspected a unit before placing a new lock on the unit because the renter was three months late in rent. The owner, upon opening the rented storage unit's door was overcome by vapors and fumes. The owner sustained severe lung damage and was rushed to the hospital. The owner suffered irreversible lung damage as a result of being exposed to the waste chemicals stored in the storage unit. The issue of not knowing who rented a storage unit is extremely dangerous; it hinders law enforcement in an investigation and presents multiple hazards to the public. Requiring an individual to present identification upon renting a storage unit could act as a deterrent to those who are considering conducting illegal and or terrorist activities at storage facilities. I believe the proposed local legislation could also alleviate conflicts between law enforcement agents and storage facility personnel when law enforcement is conducting an investigation. In addition, this legislation could limit the liability of the public storage facility and potentially save an employee's life and / or others (citizens of National City) in the surrounding community. ORDINANCE NO. 2005 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING THE NATIONAL CITY MUNICIPAL CODE BY ADDING CHAPTER 10.26 THERETO, PERTAINING TO THE REGISTRATION OF RENTERS AT PUBLIC STORAGE FACILITIES BE IT ORDAINED by the City Council of the City of National City that the National City Municipal Code is amended by adding Chapter 10.26 thereto, to read as follows: REGISTRATION OF RENTERS AT PUBLIC STORAGE FACILITIES Sections: 10.26.100 Public storage facilities — Required information — Retention of Information. 10.26.110 Definitions. 10.26.120 Regulations. 10.26.130 Administration. 10.26.140 Violations. 10.26.100 Public storage facilities — Required information — Retention of information. The city council finds and determines that it is important, in the interest of public safety, to require renters at public storage facilities to provide personal identification information to the operators of such facilities, and for operators of public storage facilities to retain the personal identification information of the renters of such facilities, which information shall be available for reasonable inspection by a law enforcement officer. 10.26.110 Definitions. A. "Operators" is described in Section 4.32.020 of the Municipal Code. B. "Renter(s)" is an individual(s) who provides compensation to an operator for the use of any property, movable or fixed. C. "Public storage facility" is defined as building(s) or grounds established for public use for the purpose of safekeeping articles and/or belongings. D. "Law enforcement officer" is described as any California peace officer, federal agent or federal criminal investigator. 10.26.120 Regulations. A. Every renter must furnish to the operator of a public storage facility photo identification as part of the registration for the hire of storage units at that public storage facility by the renter, and must identify all authorized or proposed occupants of the storage unit hired to the operator. Photo identification consists of one of the following: a valid driver license issued by the renter's state or county of residence; a federal or state government or military identification card from the United States of America; a passport; or any other form of identification on which the renter's photograph and current address appears. If because of physical disability, a renter is unable to furnish a governmentally issued form of photographic identification, an operator is authorized to accept any commercially reasonable form of identification that will serve to identify that renter. 2005 Ordinance 1 Registration of Renters at Public Storage Facilities B. The operator of the public storage facility shall maintain a record of the following identification produced by the renter, if the renter is paying by means other than credit card. Notwithstanding use of a credit card, the renter will comply with subsection A of this section. 1. Name of renter, address, date of birth, driver's license number and state of county of issue; 2. Name of each person who is authorized or invited by the renter to place belongings (occupy) in the rented storage unit during the term of hire. C. An operator shall retain any records required under this section for one year after the date the renter vacates the storage unit; the operator may destroy them after that time. D. An operator shall notify any renter who refuses to produce identification that it is unlawful to fail or refuse to provide proper identification or the identity of occupants to any operator of a public storage facility as a pre -condition to the registration process. 10.26.130 Administration. A. An operator may post a notice advising renters that a renter is liable for any storage unit charges or damage to the storage unit during the term of hire, whether caused by the renter or other authorized occupant, or both, until the storage unit is vacated by the renter and all authorized occupants and the keys are returned to the operator. The notice may also provide that the renter may be held liable for charges or damages caused by an occupant who was not identified by the renter but occupied the storage unit with the renter's permission. 10.26.140 Violations. A. It is unlawful for a renter to refuse to provide identification to an operator or fail to identify to the operator all occupants who will be authorized or invited by the renter to occupy the storage unit by the hired renter. B. It is unlawful for an operator of a public storage facility to fail to require a renter to provide photo identification; fail to retain the information required by Section 10.26.010, or to refuse to provide such information upon request of a law enforcement officer conducting an investigation. Provided, however, that any duty required under Section 10.26.010 terminates after one year following the date the renter vacates the storage unit. PASSED and ADOPTED this day of 2005. ATTEST: Michael Della, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney Nick Inzunza, Mayor 2005 Ordinance 2 Registration of Renters at Public Storage Facilities City of National City, California COUNCIL AGENDA STATEMENT EETING DATE November 15, 2005 SECOND READING AGENDA ITEM NO. 20 ITEM TITLE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING TITLE 1 OF THE NATIONAL CITY MUNICIPAL CODE BY AMENDING CHAPTERS 1.42 AND 1.44 PERTAINING TO THE PROCESS FOR SELECTION OF HEARING EXAMINERS FOR ADMINISTRATIVE REMEDIES PREPARED BY George H. Eiser, III�v DEPARTMENT City Attorney EXPLANATION 4221 Please see attached memorandum. Environmental Review Financial Statement N/A STAFF RECOMMENDATION Adopt Ordinance X N/A Account No. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) Memorandum Proposed Ordinance Resolution No. A-200 (0/80) City of National City Office of the City Attorney 1243 National City Boulevard., National City, CA 91950-4301 George H. Eiser, 111. City Attorney (619) 336-4220 Fax: (619) 336-4327 TDD: (619) 336-1615 TO: Mayor and City Council DATE: October 20, 2005 FROM: City Attorney SUBJECT: Selection of Hearing Examiners for Administrative Remedies Government Code Section 27721 authorizes cities to appoint hearing officers to preside when a local ordinance provides that a hearing be held or that findings of fact or conclusions of law be made by any municipal board, agency, commission or committee. Many cities adopted the practice of selecting temporary administrative hearing officers on a case by case (ad hoc) basis and paying them according to the duration or amount of work performed. In National City, the administrative hearings for appeals of permit, license, or entitlement denials (NCMC 1.42) and administrative citations (NCMC 1.44) are currently conducted by hearing officers or examiners designated by the City and presumably paid for by the City. However, in the recent court decision Haas v. County of San Bernardino, the California Supreme Court held that a public entity's practice of selecting temporary administrative hearing officers on an ad hoc basis and paying them according to the duration or amount of work performed violated due process. The Court further opined that this practice gives hearing officers an impermissible financial interest in the outcome of the cases they are appointed to decide, because the hearing officers' prospects for obtaining future ad hoc appointments depend solely on the entity's goodwill and because the entity, in making such appointments, may prefer those officers whose past decisions have favored the entity. The Supreme Court directed that appointment of temporary administrative hearing officers must be done in a manner that does not create the risk that favorable decisions will be rewarded with future remunerative work or financial benefit. Therefore, based on the Haas decision, the City's procedure for selection of administrative hearing officers should be amended to comply with the current state of the law, requiring impartial hearing officers chosen not by the City alone but in conjunction with the aggrieved party through a panel list. The Haas decision further directs that the payment of the hearing officer should not be born by the City alone, so as to give an appearance of non -impartiality. The proposed amendments thus contain the option of the aggrieved to share in the cost of the officer. Similarly, the ordinance should be updated to reflect the procedural rulings in the U.S. District Court cases involving Baby Tam and the City of Las Vegas. In the case of Baby Tam v. Las Vegas, the federal appellate court directed the district court to issue a permanent injunction enjoining the City of Las Vegas from denying the applicant Baby Tam a license to operate its adult bookstore as long as the licensing and zoning ordinance failed to provide for a prompt judicial hearing and decision on denial of a license. The federal appellate court further held that ® Recycled Paper Selection of Hearing Examiners October 20, 2005 Page 2 the City's licensing scheme was still on its face defective because it set no time limit within which the director of the applicable department must act upon an application for a license. In response, the City of Las Vegas placed a thirty day time period for the City to act on the entitlement, and a thirty day period to obtain judicial review. Consequently, the aforementioned amendments to the City of National City Municipal Code as to administrative hearings for appeals of permit, license, or entitlement denials and administrative citations have been given specific time periods, namely, sixty days, for action by the City. The Municipal Code amendments proposed herein will ensure that the Code is consistent with existing law. GEORGE ISER III City Attorney 711 ORDINANCE NO. 2005 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING TITLE 1 OF THE NATIONAL CITY MUNICIPAL CODE BY AMENDING CHAPTERS 1.42 AND 1.44 PERTAINING TO THE PROCESS FOR SELECTION OF HEARING EXAMINERS FOR ADMINISTRATIVE REMEDIES BE IT ORDAINED that the City Council of the City of National City does hereby amend Title 1 of the National City Municipal Code as follows: Section 1. That Chapter 1.42 is amended by amending Section 1.42.020 C to read as follows: 1.42.020 Administrative Process. C. Upon the filing of a request for a hearing or appeal, a hearing examiner shall be chosen by the parties, who shall be neutral and unbiased as to the matter in contention. Experience in the subject area is preferred but not a prerequisite. The City shall maintain a panel of candidates available to serve as hearing examiners for the administrative hearings. The enforcement officer or other designated City representative and the aggrieved party shall select a hearing examiner from the list by alternatively striking names from the panel list, beginning with the aggrieved party. The City and the aggrieved party may share the cost of the hearing examiner, or if the aggrieved party so chooses, the City will pay the full cost of the hearing examiner if requested by the aggrieved party in writing prior to the hearing. The hearing should occur no later than sixty days from the time of the request for administrative hearing filed by the aggrieved party, unless waived by the City and the aggrieved party. Section 2. That Chapter 1.44 is amended by deleting the existing language in Section 1.44.080 and inserting the following: 1.44.080 Hearing Officer. Upon the filing of a request for a hearing of an administrative citation, a hearing officer shall be chosen by the parties, who shall be neutral and unbiased as to the matter in contention. Experience in the subject area is preferred but not a prerequisite. The City shall maintain a panel of candidates available to serve as hearing officers for the administrative citation hearings. The enforcement officer or other designated City representative and the aggrieved party shall select a hearing officer from the list by alternatively striking names from the panel list, beginning with the aggrieved party. The City and the aggrieved party may share the cost of the hearing officer, or if the aggrieved party so chooses, the City will pay the full cost of the hearing officer if requested by the aggrieved party in writing prior to the hearing. 2005 Ordinance 1 Administrative Hearings Selection of Hearing Examiners The hearing should occur no later than sixty days from the time of the request for administrative hearing filed by the aggrieved party, unless waived by the City and the aggrieved party. PASSED and ADOPTED this day of 2005. Nick Inzunza, Mayor ATTEST: Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, I11 City Attomey 2005 Ordinance 2 Administrative Hearings Selection of Hearing Examiners City of National City, California COUNCIL AGENDA STATEMENT SECOND READING MEETING DATE November 15, 2005 AGENDA ITEM NO. 21 ITEM TITLE AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADDING CHAPTER 10.58 TO THE NATIONAL CITY MUNICIPAL CODE TO REGULATE BUSINESS LICENSES AND PRACTICES FOR «DEFERRED DEPOSIT TRANSACTION BUSINESSES", ALSO KNOW AS "PAYDAY LENDERS" AND REPEALING ORDINANCE NO. 2004-2254 PREPARED BY EXPLANATION George H. Eiser, III Ext. 4221 DEPARTMENT City Attorney This item was last considered at the City Council meeting of August 16, 2005. Please see attached memorandum and attachments. 9 (-Environmental Review _X__ N/A Financial Statement N/A Account No. STAFF RECOMMENDATION Adopt ordinance. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) Staff Report, with Attachments Proposed Ordinance Resolution No. J A -too (9/80) ;ANAL C/T/,..,.. City of National City Office of the City Attorney 1243 National City Boulevard., National City, CA 91950-4301 George H. Eiser, III • City Attorney (619) 336-4220 Fax: (619) 336-4327 TDD: (619) 336-1615 TO: Mayor and City Council FROM: City Attorney SUBJECT: Urgency Ordinance Regulating Payday Lenders DATE: November 15, 2005 INTRODUCTION 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, and directed staff to review alternatives with the Planning Commission. The moratorium was extended on January 6, 2004, and again on November 1, 2004, for one additional year. The moratorium will expire on November 16, 2005. Staff now recommends that an ordinance be adopted to regulate such businesses under consumer regulation measures with Title 10 of the Municipal Code, rather than as a land use regulation under Title 18. FACTUAL BACKGROUND National City has been very proactive in recent years in efforts to revitalize the community. Most recently, these efforts have been manifested in actions such as the adoption of the Downtown Specific Plan, the current consideration of the West Side Specific Plan, and the proposals for the Mexican Village Project along a portion of Highland Avenue and the Filipino Village Project along a portion of Plaza Boulevard. The City has recently experienced a proliferation of payday lending businesses, which have become a source of concern for the City Council. The City Council has received input on this issue from a number of consumer protection organizations, including the California Reinvestment Coalition (CRC), a coalition of more than 200 organizations advocating increased access to bank services, loans and investments for California's low-income communities and communities of color. The City Council has considered the report of the CRC dated March, 2005, entitled "The Financial Divide: An Uneven Playing Field" which report discusses the impact of payday lending businesses in California communities. The factual findings in the CRC report include the following: • In lower income communities such as National City, banks have removed their bank branches, which offer fairly -priced lending opportunities, and instead have financed the establishment of payday lending businesses. ® Recycled Paper Ordinance Regulating Payday Lenders November 15, 2005 Page 2 • Payday lenders may charge up to a 500+ percent annual percentage rate. • Payday lending businesses impact women and African Americans disproportionately. • Persons of low income pay more for mainstream financial products while being ignored by mainstream financial institutions. • Military personnel are particularly impacted by payday lenders. The CRC report recommends that cities and counties restrict the proliferation of payday lending businesses. THE PROPOSED ORDINANCE The proposed ordinance would add Chapter 10.58 to the Municipal Code to regulate payday lending businesses by 1) allowing no more than 10 business licenses to be issued for such businesses in the entire city, and 2) imposing certain "best practices" requirements upon such businesses. The numerical limitation was derived from a recommendation contained in a March, 2005 study by the California Reinvestment Coalition (CRC), a consumer protection organization. There are currently 10 payday lenders in the City. The best practices were derived from the best practices established by the Community Financial Services Association (CFSA), an industry association. The best practices required by the proposed ordinance are as follows: a) A contact between a payday lending business and a customer shall fully outline the terms of the payday advance transaction. The cost of the service fee must be described both as a dollar amount and as an annual percentage rate. b) A payday lending business shall not advertise the payday advance service in any false, misleading, or deceptive manner. A payday lending business shall implement procedures to inform consumers of the intended use of the payday advance service. These procedures will include notifying consumers that a payday advance is a short-term cash flow tool not designed as a solution for longer term financial problems, and informing customers of the availability of credit counseling services. d) A payday lender shall give its customers the right to rescind, at no cost, a payday advance transaction on or before the close of the following business day. Ordinance Regulating Payday Lenders November 15, 2005 Page 3 e) A payday lender shall collect past due accounts in a professional, fair, and lawful manner, and shall not use unlawful threats, intimidation, or harassment to collect accounts. f) With respect to loans made to military personnel, a payday lender shall not contact the military chain of command of a military customer in an effort to collect on the loan. The section of the ordinance imposing the aforementioned best practices would be "regulatory", meaning that it could be enforced through civil or administrative action only, such as by revocation of a business license, and not by criminal enforcement action. Previous versions of the ordinance and different concepts for regulating this industry have been considered by the Mayor and Vice -Mayor acting as a City Council Committee, by City and CDC staff, by representatives of the U.S. Navy, by a number of consumer protection organizations, including the California Reinvestment Coalition (CRC), and by representatives of the payday lending industry, including the California Financial Service Providers Association (CFSP) and the Community Financial Services Association (CFSA). Earlier drafts of the ordinance were considered that would have imposed significantly stricter regulations upon payday lenders. Coming from the other side of the issue, the CFSP and CFSA proposed an ordinance which would impose a 1,000 foot distance separation requirement between payday lending businesses, provided that the Council could grant an exemption to the separation requirement by approval of a conditional use permit (although this would probably constitute a "use variance", contrary to state law). RECOMMENDATION It is recommended. that the proposed ordinance, which is not overly -restrictive yet is designed to accomplish the goals of the City Council in regulating the payday lending industry, be adopted. It is further recommended that the ordinance be adopted as an urgency ordinance, to take effect immediately, as being necessary for the immediate preservation of the public peace, health and safety, as authorized by Section 36937(b) of the Califomia Government Code. GEORGE H. EISER, III City Attorney GHE/gmo ORDINANCE NO. 2005 — AN URGENCY 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 AND PRACTICES OF "DEFERRED DEPOSIT TRANSACTION BUSINESSES", ALSO KNOWN AS "PAYDAY LENDERS", AND REPEALING ORDINANCE NO. 2004-2254 WHEREAS, National City has been very proactive in recent years in efforts to revitalize the community. Most recently, these efforts have been manifested in actions such as the adoption of the Downtown Specific Plan, the current consideration of the West Side Specific Plan, and the proposals for the Mexican Village Project along a portion of Highland Avenue, and the Filipino Village Project along a portion of Plaza Boulevard; and WHEREAS, the City has recently experienced a proliferation of payday lending businesses, which have become a source of concern for the City Council. The City Council has received input on this issue from a number of consumer protection organizations, including the California Reinvestment Coalition (CRC), a coalition of more than 200 organizations advocating increased access to bank services, loans and investments for California's low-income communities and communities of color. The City Council has considered the report of the CRC dated March, 2005, entitled "The Financial Divide: An Uneven Playing Field" which report discusses the impact of payday lending businesses in California communities. The factual findings in the CRC report include the following: • In lower income communities such as National City, banks have removed their bank branches, which offer fairly -priced lending opportunities, and instead have financed the establishment of payday lending businesses. • Payday lenders may charge up to a 500+ percent annual percentage rate. • Payday lending businesses impact women and African Americans disproportionately. • Persons of low income pay more for mainstream financial products while being ignored by mainstream financial institutions. • Military personnel are particularly impacted by payday lenders; and WHEREAS, the CRC report recommends that cities and counties restrict the proliferation of payday lending businesses; and WHEREAS, the City Council finds that payday lending businesses will be proposed to be newly established or relocated within the City; and WHEREAS, existing City regulations do not adequately address the potential adverse effects of the proliferation of payday lending businesses in the community; and WHEREAS, the City Council finds that there is a current and immediate threat to the public peace, health and safety by the continued proliferation of payday lending businesses, and that the continued issuance of business licenses and other entitlements for use by payday lending businesses would result in a threat to the public peace, health and safety; and 2005 Urgency Ordinance 1 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders WHEREAS, the City Council supports the goal of increasing access to bank services, loans and investments for the people of National City. The City Council finds and determines that the existence of an excessive number of payday lending businesses is counterproductive to achieving this goal, and that no regulations currently exist concerning the proliferation of such businesses within the City; and WHEREAS, the City Council finds that it is necessary to protect the public peace, health and safety to enact this ordinance as an urgency ordinance, pursuant to Section 36937(b) of the California Government Code. NOW, THEREFORE,BE IT ORDAINED by the City Council of the City of National City as follows: Section 1. That Title 10 of the National City Municipal Code is hereby amended by adding Chapter 10.58 to read as follows: Chapter 10.58 ADVANCE PAYDAY LOAN BUSINESSES AND TRANSACTIONS Sections: 10.58.010 Findings and purpose 10.58.020 Definitions 10.58.030 Conduct of payday lending business 10.58.040 Operating and licensing restrictions 10.58.050 Enforcement and penalty 10.58.060 Severability 10.58.010 Findings and purpose. A. The California Reinvestment Coalition ("CRC") is 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. B. The City Council has considered the report of the CRC dated March 2005, entitled "The Financial Divide: An Uneven Playing Field", which reportdiscusses the impact of deferred deposit lending businesses in California communities. In said report, the CRC recommends that cities and counties restrict the proliferation of deferred deposit lending businesses. C. In enacting this Chapter, the City Council supports the goal of increasing access to bank services, loans and investments for the people of National City. The City Council finds and determines that the existence of an excessive number deferred deposit lending businesses is counterproductive to achieving this goal, and that no regulations currently exist concerning the proliferation of such businesses within the city. 10.58.020 Definitions. As used in this Chapter, the following terms have the following meanings: A. "Deferred deposit lender' as defined in California 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 2005 Urgency Ordinance 2 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders for a deferred deposit originator, or who assists a deferred deposit originator in the origination of a deferred deposit transaction. However, "deferred deposit lender" does not include a state or federally chartered bank, thrift, savings association, industrial loan company, or credit union. "Deferred deposit lender" 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. "Deferred deposit lender" also does not include an employee regularly employed by a "deferred deposit lender" at the deferred deposit lender'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. B. "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. C. "Deferred deposit originator" means a person who offers, originates, or makes a deferred deposit transaction. D. "Payday lender" means any person who meets the definition of "deferred deposit lender" or "deferred deposit originator" above. E. "Payday lending business" means any person who is engaged in business and meets the definition of "deferred deposit lender" or "deferred deposit originator". F. "Person" means an individual, a corporation, a partnership, a limited liability company, a joint venture, a government entity, or a political subdivision of a government entity. 10.58.030 Conduct of payday lending business. Each payday lending business within the City shall conduct its business according to the following mandatory requirements: A. A contract between a payday lending business and a customer shall fully outline the terms of the payday advance transaction. The cost of the service fee must be described both as a dollar amount and as an annual percentage rate. B. A payday lending business shall not advertise the payday advance service in any false, misleading, or deceptive manner. C. A payday lending business shall implement procedures to inform consumers of the intended use of the payday advance service. These procedures will include notifying consumers that a payday advance is a short-term cash flow tool not designed as a solution for longer term financial problems, and informing customers of the availability of credit counseling services. D. A payday lender shall give its customers the right to rescind, at no cost, a payday advance transaction on or before the close of the following business day. E. A payday lender shall collect past due accounts in a professional, fair, and lawful manner, and shall not use unlawful threats, intimidation, or harassment to collect accounts. F. With respect to loans made to military personnel, a payday lender shall not contact the military chain of command of a military customer in an effort to collect on the loan. G. This section is regulatory. 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, and shall observe all requirements of applicable state law and this Chapter. 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. 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). Existing valid business licenses may be 2005 Urgency Ordinance 3 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders renewed or transferred or reissued upon a change of ownership or location. Once a business license is revoked, it may not be reissued to any other person. 10.58.050 Enforcement and penalty. A. It is unlawful to violate any of the prohibitions of this Chapter. Except as provided in subsection B, each violation shall be prosecuted as a misdemeanor, with a penalty of a $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 enforced through 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 6.04.170. C. The maintenance of a payday lending business in violation of. this Chapter or state law shall further 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 initiate and maintain any criminal, civil and administrative actions, or any combination, pertaining to the prosecution and civil abatement of violations under this Chapter, including initiation of civil actions pertaining to unfair business practices under Business and Professions Code section 17200, if applicable, when violations of this Chapter occur. 10.58.060 Severability. If any provision of this Chapter or its application is found by a court of competent jurisdiction in the United States to be invalid or superceded by state of 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 City 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: Michael R. Della City Clerk Nick Inzunza, Mayor APPROVED AS TO FORM: George H. Eiser, III City Attorney 2005 Urgency Ordinance 4 Adding Chapter 10.58 Regulating Business Licenses for Payday Lenders APPENDIX TO STAFF REPORT ACCOMPANYING ORDINANCE ADDING CHAPTER 10.58 TO THE NATIONAL CITY MUNICIPAL CODE TO REGULATE BUSINESS LICENSES FOR "DEFERRED DEPOSIT TRANSACTION BUSINESSES", ALSO KNOWN AS "PAYDAY LENDERS" APPENDIX 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]. 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. 1 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 oo 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 10 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 rashers 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 Tower -income neighborhoods seeking to lure consumers through their doors with charming customer service while they dramatically overcharge them. In California communities like West Oakland or Pacoima or National City, banks are scarce and fairly -priced alternatives are few for the residents. Instead there are financial price-gougers: Check cashers that charge two percent or more to cash payroll checks that could be deposited for free into a mainstream checking or savings account. Payday lenders that charge 500 plus annual percent rate (APR) when an expensive credit card charges interest of 20 percent annually or less. This California Reinvestment Coalition study of check cashers and payday lenders in five California counties reveals the growing inequities between these two economies and the role that mainstream bank financing of price gougers has played in their growth as shown by public financial reports and other data. The study's core findings are: Financial institutions have removed their bank branches from most lower -income communities while they profit from financing high-priced and highly profitable check cashers and payday lenders in these same neighborhoods. The lack of retail competition from bank branches in these communities has created this lucrative opportunity for price -gouging check cashers and payday lenders. The Profits of Predatory Lending The lack of bank and savings & loan branches in lower income communities and communities of color has created a price -gouging opportunity for rapidly -expanding check cashers, payday lenders, and finance companies that prey on consumers with few financial alternatives. The lack of competition from mainstream finance and huge profit opportunities have meant that the number of check cashers and payday lenders has increased nationally from 2,000 in 1996 to 22,000 in 2003 and is still growing. The lack of competition means that finance companies pull in hundreds of millions of dollars in revenues while their executives take home million dollar salaries. Dollar Financial Group reports that its profit margin per store is 32.3 percent. The presence of these price gougers has dramatically lessened personal financial opportunities for low-income people whose choices are limited to high cost, low quality financial products that take their scarce financial resources and block their path to asset building. Banks vs. Check Cashers Looking at California communities, the financial divide between traditional and predatory finance can be seen in neighborhood after neighborhood. Page 1 000 3 fl • The Financial Divide In Los Angeles' San Fernando Valley, Encino and Pacoima exemplify this division. Pacoima has a population (90,000) which is roughly twice the size of Encino (40,700) while average income is skewed in the opposite direction ($40,000 to $91,475 ). Encino has one check casher and twenty-seven bank branches. Pacoima has nine check cashers and two bank branches; one of which just opened last year. The cities are twelve miles apart. The wealthy City of Piedmont (10,952) is half the size of the nearby neighborhood of West Oakland (19,684) while its household income ($134,270) is more than four times that of West Oakland ($27,545). Piedmont has three bank branches and no check cashers. West Oakland has no bank branches and three check cashers. Thirty-five miles apart on the Pacific Coast in San Diego County, the cities of Carlsbad and National City exhibit similar disparities. Carlsbad's population (78,000) is a little larger than National City's (54,000); its average income ($65,145) is more than twice as high as National City($29,826). Carlsbad has 25 banks and two check cashers compared to National City's five bank branch and twelve check cashers. The Price Paid by Californians This loss of opportunity in lower -income neighborhoods is reflected in individual financial hardships at the local level. An average user of check cashers and payday lenders spends one thousand additional dollars ($1,000) annually more than the cost of mainstream products. But, when the picture broadens to the state level, it exhibits immense and devastating economic disadvantages for the daily lives of lower income Californians: • • An estimated 5.2 million Californians' use check cashers and are charged at least a two percent fee to cash their checks. Using the California average income of $47,493, this costs Californians $4.9 billion ($4,900,744,729) annually. An estimated I.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 oh 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. California: Stop legal loan sharks" Editorial, Los Angeles Times, p.B 10,.May 14, 2001. 4California Financial Code Section 23035 limits the face value of the check to $300. Page 2 000 4 The Financial Divide This means that at least $5.7 billion comes out of 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 Toss 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 20037 that 60 percent of the payday customer base were women. The Center for Community Capital' found that African -American households were almost twice as likely to borrow from a payday lender as white households in North Carolina. The Center and a more recent study' of payday lending in the San Fernando Valley found that payday loan offices favor locations in neighborhoods with majority minority populations. Banks Finance the Predators While most Americans have witnessed this two-tier financial system, the connections between mainstream financial institutions and these usurious lenders are much Tess 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 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 S246.4 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 S489.5 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 1 100 percent nationally from 1996 to 2003. The amount of payday lending grew 84 percent1° 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 10 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 of them in the Los Angeles area. Banco Popular's subsidiary Popular Cash Express has 55 outlets almost all of which are in the Los Angeles area also. Bancomer Financial Services, a subsidiary of Mexico's second largest bank Bancomer, has 18 outlets in Southern California. Beyond investments and debt financing, banks also "provide cash to check cashers by permitting them to draw against uncollected funds, e.g., checks that have been deposited but have not yet been cleared."" In contrast, regular consumers are not allowed to draw against their deposits until they have cleared. Chase Manhattan Bank, Citibank, Fleet Financial, HSBC and other banks have partnered with check cashers in New York, New Jersey and Connecticut to provide payroll services for the employees of the banks' commercial customers. is 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. 12 Ibid, page 3. Page 5 000 7 The Financial Divide Most people use check cashers because of barriers placed in their way by mainstream banks, such as distant branch locations and inappropriate products. CRC's just -completed survey of its members has many comments about these issues. "There is a shortage of branches in our neighborhoods. So, teller and ATM tines 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's," 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 County". 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 Federation of America and the US Public Interest Group, November 2001. 15 "Seeking Quick Loans" by Diana Henriques, December 7, 2004. Page 6 000 8 Ico The Financial Divide Retired Admiral Charles S. Abbot, President of the Navy -Marine Corps Relief Society, terms payday lenders "just legalized loan sharks16." Summary Millions of Californians are paying much higher rates for credit than they should, which directly impacts their ability to pay their families' basic expenses. Military personnel are specifically targeted by payday lenders. As can be seen, mainstream banks play the roleof 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 The Financial Divide Appendix A - Major California Check Cashers and Payday Lenders The following chart identifies the check cashers and payday lenders whose bank debt was reflected in public UCC loan filings in California. The first column is the debtor business, the second column reflects the number of outlets of that corporation in California, and the third is the number of outlets nationally (if known). The major check cashers are often subsidiaries of national chains. For example, Money Mart is a subsidiary of Dollar Financial Group with 1,130 stores nationally. California Budget Financing and USA Checks Cashed are subsidiaries of QC Holdings which has 295 stores across the country. In fact, all of the major California check cashers listed below are either national or international with the exception of Nix Check Cashing. Major California Check Cashers and Payday Lenders Outlets CA US ADVANCE AMERICA, CASH ADVANCE CENTERS 303 2,290 CHECK'N GO 174 1,100 CHECK INTO CASH 139 715 ACE AMERICA'S CASH EXPRESS 130 1,111 MONEY MART 119 1,130 CALIF. BUDGET FINANCE 65 295 NIX CHECK CASHING 59 59 CALIFORNIA CHECK CASHING STORES, INC. 58 GIROMEX, INC. 56 POPULAR CASH EXPRESS 55 CASH PLUS 42 80 USA CHECKS CASHED 39 TRAVELEX CURRENCY SERVICES INC. 25 BANCOMER FINANCIAL SERVICES, INC. 18 Page 8 00010 Debtor ACE America's Cash Express Advance America Cash Advance Centers Advance America Cash Advance Centers Broadway Liquor and Deli California Budget Finance Cash Plus Cash Plus Check Into Cash Check Into Cash of California Check Into Cash of California Check 'N Go of California Check 'N Go Worldwide Money Mart Popular Cash Express Debtor Advance America Cash Advance Centers Advance America Cash Advance Centers California Budget Finance California Check Cashing Stores Cash & Go Cash 1 Check Into Cash Check 'N Go of California Check 'N Go Worldwide Giromex Inc Money Mart The Financial Divide Appendix B - Loans by County The following charts identify the check cashers and payday lenders whose bank debt was reflected in public UCC loan filings in the five California counties that were studied. The first column is the debtor business, the second column reflects the number of outlets of that corporation in the particular county, and the third is the bank lender. (Please note that some check cashers and payday lenders have more than one credit relationship. In that case, the number of outlets is only listed once.) Alameda County Outlets 9 Fresno County Outlets 7 23 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 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 Los Angeles County Outlets 38 59 Lender Wells Fargo Bank Texas US Bancorp Wells Fargo Fin Leasing 1 JP Morgan Chase Bank 4 Wilshire State Bank Orange Community Bank Wilshire State Bank 7 Union Bank 2 Corus Bank 12 Bancomer 1 Hanmi Bank Saehan Bank 16 US Bank NA 2 Banco Popular 4 Union Planters Bank Banco Popular North America 14 Merchants Bank of CA 3 Wells Fargo Financial Leasing, Inc. 31 Bank of America 42 PNC Bank NA National City Bank 8 Banco Popular North America 26 Bank of California 10 Union Bank of California 1 California Bank & Trust 1 Hanmi Bank 23 Merchants Bank of CA 8 Merchants Bank of CA 1 Merchants Bank of CA Merchants Bank of CA 5 Merchants Bank of CA 23 Wells Fargo Bank Banco Popular 55 Union Bank of California 1 Merchants Bank of CA 4 Banco Popular US Bancorp 44 Banco Popular 00012 Debtor ACE Cash Express Advance America Cash Advance 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 Money Mart Sunrise Check Cashing Travelex Currency Services USA Cash Services 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 The Financial Divide Su Casa De Cambio Sun's Cash Express Travelex Currency Services USA Cash Services Management, Inc. Sacramento County Outlets 13 17 4 Merchants Bank of CA 1 Merchants Bank of CA 4 Barclays Bank, Sec Trustee 1 Wells Fargo Bank 2 13 7 3 6 6 14 1 1 8 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 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 a3 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 MisvIxlvv.calreinvestorg 00016 PAYDAY LENDING ZONING LAW/LEGISLATION TYPE OF ZONING LAW JURISDICTION PRINCIPAL CONTACT Conditional use permit for "small loan business." Limit business to certain commercial areas Arnold, MO Arnold City Council Mary Holden Create a separate license category for payday lending - $400 for business license v. $750 regular bank St. John, MO City Council Create a classification for payday institutions different from "financial institutions" Berkeley, MO City Council Gwen Verges First Ward Per capita limit if one store per 15,000 residents proposed ordinance St. Joseph, MO Conditional use process that allows a site- specific review by the board of supervisors Chesterfield, VA Thomas Jacobson Director of Planning Special use permit requirement (1000 ft. separation between payday lenders failed) Las Vegas, NV City Council Michael McDonald Councilman Conditional use permit for each location. Require public haring for each request. St. Louis County, MO County Council & Planning Commission City Zoning Code does not prohibit or permit check cashing services - decision on a case -by -case basis. Ft. Lauderdale, FL Pembroke Pines Board of Adjustment Saul Shechter, board member & Mayor Alex Fekete Zoning does not include check cashing. Burlington, VT Planning Department Special Use Permits Milwaukee, WI Alderman Terrance Herron Special Use Permits Glendale Heights, IL Village Planning Commission Change zone classification from a service district to special use which would require public hearing. Chicago, IL City Council Alderman Toni Preckwinkle State Bill: Vermont * Require a license from the Dept. of Banking, Insurance, Securities & Health Care Administration. * Check cashing business could charge no more than 5% of the pay check or $5, whichever is greater; government checks, 3% of their value or $2; personal checks or money orders 10% of their value or $5. * Check cashing business banned from holding checks for future deposit while providing cash (payday loans). * One-time membership fees not to exceed $10. Q\DOCUMENTS AND SETTNGS\RHRADECK\LOCAL SETTINGS \TEMPORARY TNTERNET FILES \OLKSPDL LAW LEG CHART WALRATH. WPD 00017 as GAO April 2005 GAO-06-349 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 Integrity * Rellablllty 00018 G A O A000unlebllltr• Inlay rlty• Rdhblllty Highlights Highlights of GAO-05.349, a report to Senator Richard J. Durbin Why GAO DldThis 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 eases 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 useand effects of predatory lending practices on servicemembers: amend regulations to require at least semi- annual meetings of the Armed; Forces Disciplinary Control Boards and clarify regulations pertaining to advertisements in official DOD publications. DOD concurred with GAO's recommendations. www.gao.gov/cgl-bin/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 stewartd®gao.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 2006 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 27 Contents Letter Appendixes Table Figure Appendix I: Appendix II: Appendix III: Appendix IV Appendix V: 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 3 5 7 12 18 18 18 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 1: Installations in the United States and Germany Where GAO Conducted Site Visits from May to October 2004 21 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 GAO-06-349 Predatory Lending 00020 .20 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 thls work may contain copyrighted images or other material, permission from the copyright holder may be necessary if you wish to reproduce thls material separately. Page it GA0.O5-949 Predatory Lending 00021 art United States Government Accountability Office Washington, D.C. 20548 April 26, 2005 The Honorable Richard J. Durbin United States Senate Dear Senator Durbin:. The Department of Defense (DOD) has expressed continuing concerns about servicemembers' use of predatory consumer loans. These loans can result in financial problems that may lead to severe negative consequences for the military as a whole (e.g., decreases in unit readiness and morale) as well as for the servicemembers themselves (e.g., criminal and adverse personnel actions, including possible discharge from the military). "Predatory lending" has no precise definition, but is generally used to describe cases in which a lender takes unfair advantage of a borrower, sometimes through deception, fraud, or manipulation, to make a loan that contains terms that are disadvantageous to the borrower.' DOD policy officials have expressed concerns over certain types of high -cost, short- term consumer loans that are typically provided by lenders who lie outside the system of federally insured financial institutions. These include payday loans, rent -to -own loans, automobile title pawn loans, and tax refund loans. DOD has a number of tools to address the use and effects of loans that it considers predatory. These tools include: (1) the Armed Forces Disciplinary Control Boards,2 which can make recommendations to installation commanders who can then use or threaten to use their "off-limits" authority to prohibit servicemembers from using a business that engages in predatory lending practices; (2) free legal assistance with 'See GAO, Consumer Protection' Federal and State Agencies Face Challenges in Combating Predatory Lending, GAO.04-280 (Washington, D.C.: Jan. 30, 2004). The cited report addresses home mortgage lending and equity loans, but our work did not. Nevertheless, some lending practices are widely acknowledged to be predatory and include charging excessive fees and interest rates, repeatedly rolling over or refinancing loans without economic gain for the borrower, falsifying documents, and intentionally misinforming borrowers about the terms of their loans. 'For the joint service instruction, see AR190-2, OPNAVIST1620.2A, AFI31-213, MC01620,2C, COMDTINST1620.1D, Armed Forces Disciplinary Control Boards and O� 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 GAO.06-349 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 utilizing the tools that DOD has to curb the use and effects of predatory lending practices? In addressing these two questions, we limited the scope of our work to active duty personnel and emphasized junior enlisted servicemembers (i.e., pay grades El to E4) because DOD and service officials have indicated that this subgroup —whose basic pay currently ranges from about $1,200 to $1,900 per month —is most likely to encounter financial problems. Numerous methods were used to gather and assess information for this work.6 We examined DOD and service policies and tools for assisting servicemembers with their financial management, establishing and using Armed Forces Disciplinary Control Boards, and advertising in installation publications. In addition, we reviewed reports by GAO, other congressional research offices, DOD, and other organizations. We contacted the Federal Trade Commission to ascertain what data were available through Military Sentinel regarding the types of consumer complaints servicemembers filed against businesses. We interviewed DOD and service policy officials and officials from organizations such as the Consumer Federation of America — 'See GAO, Military Personnel: More DOD Actions Needed to Address Servicemembers' Personal Financial Management Issues, GAO-05-348 (Washington, D.C.: Apr. 26, 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 GA0-06348 and GAO, Military Personnel: Bankruptcy Filings among Active Duty Service Members, GAO-04-466R (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 GAO-08-340 Predatory Lending 00023 I Results Brief a consumer advocacy group —and the Community Financial Services Association of America —a payday lending association —to understand different perspectives about servicemembers' use of short-term consumer loans. During site visits to 13 military installations in the United States and Germanyore rim requested instructions regarding documents pertaining to predatory lending such as guidance u d ri or and uctiontraininpredatory lending activities at the gather data from a variety of personnel on the structuredaterials; used installations: �estion coes to n leaders, PFM program managers, command lcommand assistance attorneys,financial counselors, legal E9), chaplaisenior noncommissioned officers (pay grades E8 to conducted 60 focus staff from the military, relief/aid societies; and co) and seniord(paygroups composed of over 400 junior (pay grades El to 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. August 2004 survey had a response rate of 40 percent. DOD has conducted and reported on research to assess the impact of this response rate on overall estimates They found that, among other characteristics, junior enlisted personnel (El to E4), servicemembers who do not have a college degree, and members in services other than the Air. Force were more likely to be nonrespondents. We found the data sufficiently reliable to address our objectives. We performed our work from March 2004 through February 2005 in accordance with generally accepted government auditing standards. The extent to which active duty servicemembers use consumer loans considered to be predatory in nature and the effects of such borrowing are unknown, but many sources suggest that providers of such loans may be targeting servicemembers. The only DOD -wide data come from surveys that have low response rates that make findings projected to the population Page 3 GA0-06-349 Predatory Lending 00024 of all active duty servicemembers or subgroups thereof tenuous. In a 2004 survey, 12 percent of servicemembers said they or their spouse had used, during the last 12 months, at least one of four types of loans: payday, rent - to -own, automobile title pawn, and tax return, which DOD says can often be associated with predatory lending practices. DOD is unable to quantify the extent to which the loans have associated predatory practices, the frequency of borrowing, the amounts borrowed, or the effects of the loans. Although not generalizable, participants in GAO's 60 focus groups at 13 bases in the United States and Germany identified problems such as high fees and debt collection methods resulting from the use of these types of short-term consumer loans, but other participants described the loans as quick, easy, and obtainable by servicemembers with bad credit. Privacy concerns and the reluctance of servicemembers to reveal financial problems make it difficult to quantify the use and effects of predatory lending. While DOD is unable to quantify usage and effects, consumer advocates, state government officials, DOD officials, and servicemembers in our focus groups indicated that military personnel are being targeted by some predatory lenders and are adversely affected when they use businesses that employ predatory lending practices. DOD and active duty servicemembers are not fully utilizing DOD's tools for curbing the use and effects of predatory lending practices. While commanders at some installations we visited have changed the illegal or unfair practices of some businesses by using recommendations from Armed Forces Disciplinary Control Boards to place or threaten to place businesses off-limits to servicemembers, boards at three installations we visited had not met in over a year. For example, Fort Drum's board had not met in about 4 years, even though the New York Attorney General had filed two lending -related lawsuits against businesses on behalf of servicemembers and some of their family members at Fort Drum. Installation officials told us the reasons for boards not meeting or making recommendations include high deployment levels and the effort required to place a business on the off-limits list. A second tool that DOD is underutilizing pertains to advertisements in installations' newspapers. Participants in GAO's focus groups said they were confused because DOD - provided financial management training warned them against using payday lenders but some installation newspapers carried advertisements for such businesses. These problems occur even though a DOD instruction requires (1) a disclaimer indicating that the advertisement does not constitute endorsement by the U.S. government and (2) a review by public affairs staff to determine if the advertisement might be detrimental to servicemembers. Our review of some installation newspapers showed that the confusion and Page 4 GA0-O5-349 Predatory Lending 00025 3 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 Ienders offer alternative access to cash for consumers with low incomes or poor credit records, and generally do so without standard credit checks. The fees charged for these alternative loans are generally much higher than those charged by traditional financial institutions, and other terms and conditions of such loans are often unfavorable to the borrower. As a result, some federal, state, and consumer advocacy agencies have expressed concern that many of these alternative loans could include predatory practices. The most conunon 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.6 • 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 $16 to $30 on each $100 advanced. If the fee is $16 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 $76 in fees in addition to repaying the borrowed $100. 'Survey of Rent -to -Own Customers, Federal Trade Commission Bureau of Economics Staff Report (undated). Page 6 GAO.05-349 Predatory Lending 0002 35- Use of Consumer Loans That Are Considered Predatory Is Unknown, but Sources Say Predatory Lenders May Be Targeting Servicernembers advances.° 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 night use a payday loan to avoid a bounced check fee, late payment penalty, or reconnection fees associated with the late payment of a utility bill. The Congressional Research Service estimated that the number of payday loan offices nationwide increased from approximately 300 in 1992 to almost 15,000 in 2002, and the total dollar volume of payday loans in 2002 was about $25 billion.° The extent to which active duty servicemembers use consumer loans considered to be predatory and the effects of such borrowing are unknown,. but many sources suggest that predatory lenders may be targeting servicemembers. While DOD has some data on servicemembers' use of four types of loans, DOD is unable to quantify the extent to which these types of loans have associated predatory practices, the frequency of borrowing, the amounts borrowed, or the effects of the loans. Information from our focus groups, however, provided insights to some of these issues. Although DOD is unable to quantify usage and effects, consumer advocates, state government officials, DOD officials, and servicemembers in our focus groups indicated that military personnel are being targeted by some predatory lenders. °The association's Web site (www.cfsa.net) states that "a member will comply with grate 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. 6, 2004). Page 7 GAO.05-349 Predatory Lending 00028 3(v DOD Has Limited Data for Quantifying the Extent That Servicemembers Use Consumer Loans Considered Predatory DOD does not have comprehensive data for quantifying the extent to which servicemembers use consumer loans that are considered predatory in nature and the effects of such use on servicemembers' finances or their units' readiness. The only DOD -wide statistics on servicemembers' use of loans are obtained from surveys. In the August 2004 DOD survey,10 12 percent of servicemembers indicated that, during the last 12 months, they or their spouse had used at least one of the four specified types of financial loans that DOD says may have associated predatory practices. Seven percent of servicemembers indicated they (or their spouse) had obtained payday loans; 4 percent had obtained rent -to -own loans, 1 percent had obtained automobile title pawn loans, and 6 percent had obtained tax refund loans. While only 2 percent of the officers had used any of the four financial transactions, 14 percent of the junior and 13 percent of the senior enlisted servicemembers had used at least one such loan. Although not generalizable to. all active duty servicemembers and their spouses, some of the more than 400 participants in our 60 focus groups reported encountering problems when they used the short-term consumer loans; while other servicemembers said such loans have positive elements such as being quick, easy, and obtainable even if servicemembers had a bad credit history (see app. II for example comments). DOD's efforts to assess predatory lending are hampered by the lack of a precise definition of predatory lending —a problem shared with other organizations attempting to quantify the use and effects of predatory loans. The lack of precision in the definition is found in DOD's acknowledgement that the four types of loans may (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 Multiple Sources Indicate Some Predatory Lenders May Be Targeting Servicemembers that may use predatory lending practices include questions on the frequency of use, amounts borrowed, negative and positive effects of the loans, and any problems encountered during the transactions. DOD, service, and installation officials maintained that obtaining data on the use and effects of predatory lending are also hampered because of privacy considerations and the reluctance of most servicemembers to discuss their financial difficulties with their command. Installation officials told us that they are likely to learn about servicemembers' use of the previously cited types of loans only when a situation has become serious enough to warrant creditors contacting the command or servicemembers contacting either financial counselors or legal assistance attorneys on the installations. Because of general privacy concerns, it is unlikely that all contacts with attorneys and counselors could be provided in an installation -level statistic. According to some consumer advocates, state officials DOD officials, mili�Y personnel, servicemembers are targeted by predatory lenA d 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 $1,900 per month) and tend to be young and financially inexperienced." The report further suggested that deploying servicemembers are more vulnerable targets than their nondeploying peers because the former often must get their finances in order quickly and leave behind spouses who may not know how to manage the family's finances. The report noted several financial practices that it considered "consumer scams" aimed at servicemembers. These included payday loans, rent -to -own transactions, and automobile title pawns. Some state officials have also suggested that payday lenders —a type of predatory lending according to DOD —target servicemembers. For example, the Georgia General Assembly has recently determined as part of its new antipayday lending legislation that despite its illegality, payday lending was growing in Georgia and having an adverse effect on Consumer Law Center, Inc., In and the Direct Targeting of America's Military aandsVeteeran (Boston, Massa May 200—At Home: Consmer 3). Page 9 GAO.06-949 Predatory Lending 00030 3$ 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.t4 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.16 120fficial Code of Georgia Annotated'Title 16, Chapter 17. "See DOD Web site httpJ/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: How High -Priced Lenders Use the Internet to Mire Borrowers in Debt and Evade State Consumer Protections (Washington, D,C.: Nov. 30, 2004). Page 10 GAO-05.349 Predatory Lending 00031 Figure 1: The Number of Servlcemembers In Each State and Whether or Not the State Has Payday Lending Laws with Interest Caps or Other Prohibitions N.H. Mass. R.I. Conn. N.J. Del. Md. D.C. States that prohibit paydaybans due to small loan Interest rate ceps, 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 member Source; Department or Defense and Consumer Federation of America. Page 11 GAO-05-349 Predatory Lending 00032 DOD's Tools for Curbing the Use and Effects of Predatory Lending Underutilized DOD and servicemembers are underutilizing the tools that DOD has for curbing predatory lending practices and the effects of such lending. While commanders at some installations we visited have changed the unfair practices of businesses by using recommendations from Armed Forces Disciplinary Control Boards to place or threaten to place businesses on off- limits lists to servicemembers, boards at other installations we visited rarely met or made such recommendations. Although installation newspapers appear to meet current disclaimer requirements by including a statement noting that the U.S. government does not endorse a business' products or services, the advertisements may lead to confusion for readers because the disclaimers are not prominently printed or located near the advertisement. Additionally, servicemembers typically have not made full use of free DOD -provided legal assistance before signing contracts and other financial documents, but they sometimes use the assistance after financial problems develop. Recently, DOD has sought to expand the tools available for curbing the use and effects of predatory lending practices by exploring additional on -installation alternatives to payday loans. Armed Forces Disciplinary Control Boards Can Be an Effective Tool for Curbing Predatory Lending Practices, but They Are Underutilized Armed Forces Disciplinary Control Boards and the recommendations that they make to an installation commander to place businesses off-limits to servicemembers can be effective tools for avoiding or correcting unfair practices, but data gathered during some of our site visits tothe 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 10Under current DOD joint policy, if a board concludes that an establishment has unfair commerclal 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 maldng a recommendation to the commander to place an establishment on the off-limits list. These steps include (1) notifying the owner or manager that the board is considering actions, and giving the owner or manager time to correct any adverse conditions or practices; (2) if the adverse conditions are not corrected, giving the owner or manager the opportunity to appear and present matters before the board; and (3) recommending an off-limits restriction, if further investigation indicates that improvements have not been made. These steps, according to some installation officials, can be time consuming and are designed to permit the owner or manager to voluntarily correct conditions or practices before the board recommends placement on an off-limits list. If a commander places a business on the off-limits list, servicemembers are prohibited from entering the establishment and face disciplinary action if they violate this prohibition. Page 12 GAO.O5-349 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 Drurn servicemembers. • The Attorney General settled a lawsuit in 2004 in behalf of 177 plaintiffs —most of whom were Fort Drum servicemembers--involving a furniture store that had improperly garnished wages pursuant to unlawful agreements it had required customers to sign at the time of purchase. • The Attorney General filed a lawsuit in 2004 involving catalog sales stores. He characterized the stores as payday -lending firms that charged excessive interest rates on loans disguised as payments toward catalog purchases. Some of the servicemembers and family members at Fort Drum fell prey to this practice. The Attorney General stated that he found it particularly troubling that two of the catalog stores were located near the Fort Drum gate. The Garrison Commander at Fort Drum and a representative of the board said that had they known about these cases, they would have considered placing the businesses on the off-limits list. Legal assistance attorneys at Fort Drum were, however, aware of the legal actions by the New York Attorney General. By not making full use of the boards, commanders may not be doing all they can to help servicemembers avoid businesses that employ predatory practices. According to officials at the installations we visited, the boards might not be used as a tool for dealing with predatory lenders for a variety of reasons. First, high deployment levels have resulted in commanders minimizing some administrative duties, such as convening the boards, in order to use their personnel for other purposes. Second, as long as the lenders operate within state laws, the boards may determine they have little basis to recommend placing or threatening to place businesses on the off-limits lists. Third, significant effort may be required to put businesses on off- limits lists. At the installations we visited, the boards' composition included representatives from functional areas like public works, family community services, legal counsel, safety, and public affairs. Page 13 GAO-05-349 Predatory Lending 00034 In contrast, businesses near two other installations we visited changed their lending practices after boards recommended that commanders place or threaten to place businesses on off-limits lists. The Commander of the Navy Region Southwest's board identified actions that were based on the board's recommendations against businesses committing illegal acts or taking unfair advantage of servicemembers. For example, in October 2002, a company was placed off-limits because it represented itself as a government agency when arranging loan -repayment allotments with servicemembers, threatened debtors with court-martial for nonpayment, and wrote loans that had interest rates of 60 percent. Similarly, the board at Camp Lejeune, North Carolina, threatened to take action against a lender that was charging 33.1 percent interest and requiring servicemembers to waive their rights set forth by the Servicemembers Civil Relief Act." 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.1e A DOD instruction requires installation publications to run disclaimers warning readers that advertisements do not constitute endorsement by the U.S. government. The instruction also requires public affairs staffs to oversee the appropriateness of advertisements in installation publications.1° Among other things, the public affairs staff is to review advertisements and identify any that may be " 60 U.S.C. App. 4 601. 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. 1'See "Consumer Scams: Are You Getting Ripped Oft?" 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 GAD-05-349 Predatory Lending 00035 Servicemembers Do Not Make Full Use of Free DOD - Provided Legal Assistance for Financial Issues 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 a]I 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 take full advantage of free DOD -provided legal assistance on contracts and other financial documents. Legal assistance attorneys at the 13 installations we visited stated that servicemembers rarely seek their assistance before entering into financial contracts for goods or services such as purchasing cars or lifetime film developing. Page 15 GAO-05.349 Predatory Lending 0003E sty 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 bookvalue 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 GA0-06.349 Predatory Lending 00037 DOD Is Exploring On - Installation Alternatives to Payday Loans DOD, service, and installation officials are exploring on-installation-i� alternatives to payday loans for those servicemembers with financial problems. In 2004, DOD said it surveyed approximately 150 defense credit unions and received responses front 48. Of those responding, which may not be representative of all defense credit unions due to the low response rate, 29 credit unions said that they offer an alternative to payday lending. The alternatives, which can be shared with other on -installation credit unions and banks as well as PFM program managers and command financial counselors, included (1) low-cost, short-term lines of credit; (2) short-term signature loans or small unsecured signature loans; and (3) availability of funds 2 days before the servicemember's normal pay date. Some of the PFM program managers at the 13 installations we visited had also worked with on -installation credit unions and banks to obtain payday loan alternatives, which included special loan programs or overdraft protection of up to $500 for customers with "less -than perfect" credit histories. One credit union that we visited advertised a loan alternative called QuickCash, which had an annual percentage rate of 18 percent. To use QuickCash, servicemembers were required to join the credit union, apply for the loan, and have the repayment deducted from their account the following pay period. Some of the on -installation credit unions also offer seminars and training to assist servicemembers in finding lending alternatives. Other alternatives to payday loans include pay advances and military relief/aid society grants and no interest loans to servicemembers.20 Some servicemembers in our focus groups stated that they would not use these types of installation -related alternatives because the alternatives take too long, are intrusive because the financial institution or relief/aid society required in-depth financial information in the loan or grant application, or may be career limiting if the command found out the servicemembers were having financial problems. The Army Emergency Relief Society has attempted to address the time and intrusiveness concerns with its test program, Commander's Referral, for active duty soldiers lacking funds to 20These are provided during emergencies, which include nonreceipt or loss of pay, funeral expenses for dependents, repair of a primary vehicle, and payment of rent to prevent eviction. See AR-930-4, Array 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. 6, 2004). The Navy and Marine Corps Relief Society officials said they do not have an instruction. Page 17 GA0-05.349 Predatory Lending 00038 meet monthly obligations of $500 or less. After the commander approves the loans, the servicemembers can expect to receive funds quickly. Noncommissioned officers in our individual interviews and focus groups said the program still does not address servicemembers' fears that revealing financial problems to the command can jeopardize their careers. Conclusions Although we have cited examples where installation commanders changed the predatory practices of businesses by adding or threatening to add the lenders to an off-limits list, other installation commanders we visited have made only limited use of their Armed Forces Disciplinary Control Board for such purposes. The fact that some boards have not met for a year or more seems to run contrary to DOD, service, and installation efforts to curb the use and effects of predatory lending practices. As we have discussed, failure to utilize this valuable tool fully and appropriately for curbing unfair or illegal commercial or consumer practices can have negative, but difficult -to -quantify, consequences on servicemembers' finances as well as unit morale and readiness. Furthermore, although military installations appear to be meeting current requirements regarding disclaimers for advertisements in installation publications, the location of the disclaimer has resulted in unclear messages to some servicemembers about whether inclusion of certain advertisements constitutes approval or endorsement of the business by DOD. In addition, some servicemembers have been confused when the content of some advertisements is contrary to official DOD statements regarding the use of lenders who may use predatory lending practices. This confusion is particularly problematic because it may harm DOD's efforts to reduce the use and effects of predatory lending practices. Recommendations for We are making the following two recommendations to the Secretary of Defense: Executive Action • 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 GAO-05.349 Predatory Lending 00039 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) 612-6569 (stewartd@gao.gov) or Jack E. Edwards at (202) 612- 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 GAO-06.349 Predatory Lending 00041 Appendix 1 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 pay -related problems of reservists' While performing our work, we visited 13 installations with high deployment levels, as identified by service officials (see table 1).2 During these site visits to installations in the United States and Germany, special emphasis was given to ascertaining the financial conditions of junior enlisted servicemembers because the Department of Defense (DOD) and service officials have reported that this subgroup is more likely to encounter financial problems. Table 1: Installations In the United States and Germany Where GAO Conducted Site Visits from May to October 2004 Service Army Installation 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 Air Force Bolling Air Force Base, Washington, D.C. Scum: GAO. Camp Pendleton, California Langley Air Force Base, Virginia Ramstein Air Base, Germany 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 GA0-06-348. Page 21 GAO-06-349 Predatory Lending 00042 Appendix I Scope and Methodology directives —such as the Servicemembers Civil Relief Acts 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 60 percent of payday lenders (Community Financial Services Association of America). We reviewed a 2004 Consumer Federation of America study, which cited 16 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, arid relief/aid societies. We used a structured protocol for conducting 60 focus groups with over 400 individuals who met in four homogeneous types of groups: junior enlisted servicemembers (pay grades El to E4), noncommissioned officers (pay grades E5 to E9), company -grade officers (pay grades 01 to 03), and spouses of servicemembers. In addition, we constructed, pretested, and administered a survey to participants in the focus groups to collect supplemental information that may have been difficult to collect in a group setting. We also obtained data from an August 2004 DOD -wide survey' to assess its reliability and determine prevalence rates for four types of loans that DOD says may contain predatory practices. The August 350 U.S.C. App. § 601. °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 Appendix Scope and Methodology 2004 survey had a response rate of 40 percent. DOD has conducted and reported on research to assess the impact of this response rate on overall estimates. They found that, among other characteristics, junior enlisted personnel (El to E4), servicemembers who do not have a college degree, and members in services other than the Air Force were more likely to be nonrespondents. We have no reason to believe that potential non -response bias in the estimates, not otherwise accounted for by DOD's research, is substantial for the variables we studied in this report. Therefore, we concluded the data to be sufficiently reliable to address our objectives. We found the data sufficiently reliable to address our objectives. This information was supplemented with information obtained from three group discussions with a total of 50 personnel affiliated with the PFM programs while they attended a November 2004 conference. To assess whether DOD was fully utilizing the tools that it has to curb the use and effects of predatory lending practices, we obtained information from the laws, policies, directives, and reports that were used to address servicemembers' use of loans that DOD considered to be predatory in nature. DOD and service policy officials identified DOD's primary tools for curbing the use and effects of predatory loans. These individuals also supplied their perspectives on how fully utilized those tools were. Similarly, individual interviews and focus groups with others who supplied information on the question related to servicemembers' use of consumer loans also provided their perspectives on how fully the tools were used, the effects of 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 GA0.05-349 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 GA0.05-349 Predatory Lending 00045 Appendix II Predatory Lending Findings from GAO -Led Focus Groups Held at 13 Installations the following information: "Now we would like to talk about specific problems with predatory lenders. These include lenders that charge excessive fees and interest rates and those that lend without regard to borrowers' ability to repay —usually lending to those with limited income or poor or no credit. Some payday lenders and fast checking places that charge high interest rates may fall into this category. Or a predatory lender could be a lender that commits outright fraud or deception for example, falsifying documents or intentionally misinforming the borrowers about the terms of a loan, which may occur with unscrupulous car dealers." The themes and the number of installations for which a statement about a theme was cited are provided in italics below. Also, two examples of the statements categorized in the theme are provided. Only those themes cited at a minimum of three installations are presented. The number of installations —rather than the number of statements —is provided because (1) the focus of this engagement was on DOD -wide issues and (2) a lengthy discussion in a single focus group may have generated numerous comments. 5. What kinds of experiences have your fellow servicemembers or subordinates had with predatory lenders? A. Other issue regarding experiences with predatory lenders (N = 13) • Example: Businesses will tell young Marines that they can buy an item for a certain amount each month. They keep the Marine focused on the low monthly payments and not on the interest rate or the terms of the loan. • Example: Some Marines feel that a business would not take advantage of them because they are in the military. This leads them to be more trusting of the local businesses than they should be, which in turn, leads the businesses to take advantage of them. B. Predatory lender used —car dealers (N = 11) • Example: Most of the participants stated that the car dealerships around base were the worst predatory lenders because they charge high interest rates and often provide cars that are "lemons." They said that most of the sales people at the dealerships are former personnel who know how to talk to servicemembers to obtain their trust. Servicemembers do not expect this. Page 25 GAO-05.349 Predatory Lending 00046 Appendix II Predatory Lending Findings from GAO -Led Focus Groups Held at 13Installations • Example: One captain had a Marine. in his unit who signed a contract with a car dealer for a loan with a 26 percent interest rate. The captain took the Marine to the Marine Credit Union and got him a new loan with 9.5 percent interest. C. Predatory lender used —payday lenders (N = 10) • Example: A master sergeant got caught in the check -cashing cycle. He would write a check at one payday lender in order to cover a check written at another lender the previous week. • Example: One participant shared that when he was a younger Marine he got caught up with a payday lender. The problem did not resolve itself until he deployed and was not able to go to the lender anymore. D. Reason for using predatory lender —get fast cash and no hassle (N= 10) • Example: People use payday lenders because they are quick and easy All soldiers have to do is to provide their leave and earnings statement and they get the money. • Example: Most of the participants say they know people that have used a payday lender and those soldiers use them because they have bad credit and can get quick cash. E. Predatory lender targeting —close proximity and clustering around bases (N = 9) • Example: It is almost impossible to be unaware of lenders and dealerships because many are clustered in close proximity to the installation. They also distribute flyers and use pervasive advertising in local and installation papers. • Example: The stores and car lots near the installation have signs that say "El and up approved" or "all military approved" to get the attention of the military servicemembers. Page 28 GAO.06.349 Predatory Lending 00047 Appendix II Predatory Lending Findings from GAO -Led Focus Groups Held at 13 Installations F. Command role when contacted by creditors (N= 8) • Example: The noncommissioned officers sometimes offer to go with the junior enlisted to places like car dealers; but, the young soldiers do not take them up on these offers. • Example: One participant said that debt collectors do call his house and the command. He noted that one lender called him nine times in one day and his chief petty officer eventually asked the lender to stop harassing his sailor. G. Predatory lender targeting —advertising in installation.4ocal 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 GA0-05.349 Predatory Lending 00048 Appendix H Predatory Lending Findings from GAO -Led Focus Groups Held at 13 Installations • Example: Rent -to -own businesses are widely used by soldiers. One soldier ended up paying $3,000 for an $800 washer and dryer set. J. No problem with predatory lenders (N = 5) • Example: There have not been any problems with predatory lenders lately. The state of Florida has been using legislation to shut them down. • Example: The participants said that they had never encountered an officer who had to use payday lenders or predatory lenders. According to the participants, most of the officers' problems come when they have a bitter divorce. K. Reason for using predatory lender —other reasons (N = 5) • Example: One soldier stated that his credit was so bad that he had no other option but to use high interest rate lenders. He stated that, "I have bad credit and I will always get bad credit." • Example: One participant said he has several friends that use payday lenders because they are Els or E2s and don't make much money. L. Predatory lender targeting —employing former military members (N = 4) • Example: The people running and working for the predatory businesses are usually former military servicemembers who use their knowledge of the system to take advantage of Marines. • Example: Many times the predatory lenders are veterans, former Marines, or retirees. Using these types of people gives the younger Marines a false sense of trust and then the lenders will take advantage of the servicemember or stab the servicemember in the back. M. Reason for using predatory lender —command will not know financial conditions (N = 3) • Example: When a soldier needs money, a payday loan can be used without notifying the chain of command. Any form of assistance from Page 28 GAO-05-349 Predatory Lending 00049 Appendix II Predatory Lending Findings from GAO -Led Focus Groups Held at 13 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 lmow your business. GAO-05-349 Predatory Lending 00050 58 Appendix III Comments from the Department of Defense OFFICE OF' THE UNDER SECRETARY OF DEFENSE 4000 DEFENSE PENTAGON WASHINGTON. D.C. 20301-4000 APR 1 2 2005 1fna_140. 111010 nAomW 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 Utilized,' dated March 29, 2005 (GAO Code 350661)." Comments on the two draft report recommendations are attached. Attachment: As stated Sincerely, Jeanne B. Fites Deputy Under Secretary of Defense Program Integration Page 30 GA0.05-349 Predatory Lending 00051 r5� Appendix 111 Comments from the Department of Defense Ga0-05-349/0AD CODE 350661 "MILITARY PERSONNEL: DOD'S TOOLS. TOR CUREING TSE USE AND ZZTZCTS OF PREDATORY LENDING NOT FULLY UTILIZED" DEPARTMENT OF DEFENSE COMMENTS TO TEE REC002RNDATIONs • RECOMMENDATION I: 'The GAO recommended that the Secretary of Defense direct the Under Secretary of Defense for Personnel and Readiness to amend existing rsguladons to require installation commandets to convene the Armed Forces Disciplinary Control Boards at least semiannually to investigate and make recommendations to commandees on utters 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 senor. 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 reconmhendation. Business Model: Payday lenders provide short term loans, without credit checks, at annual interest rates at or above 390%. These small loans cost the consumer approximately $15 . $20 pa 5100 borrowed, if the loan is paid at the end of the two - week loan period. These bane become predatory as they are rolled -ova, or as individuals engage in multiple loans of $300.5500. The impact of roll -oven or multiple loans is to extend the individual far beyond their ability to payback the interest and principle, capturing the individual in a spiral of debt. These activities are legal in 35 states and would require the local command to develop criteria other than the state statutes to determine If the payday lender should be made off limits. The current Community Financial Services Association (CFSA) best practices mentioned in the report are not adequate criteria for determining acceptability. For example, the GAO report states that CFSA best practices limit the number of roll-over loans allowed. Their Ilmlt Is 4 roll-overs, which produces an Interest rate of 60% - 70%, which is unacceptable. For example, cost to a Service member for a loan for S weeks (4 roll- overs) for 5500 would be approximately 5300 - 5350. 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 Qd 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, Ioea1 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, Univeraity of Florida, Fredric G. Levin College of Law, illustrates that the number of payday lending outlets around military installations would overwhelm a process designed to review one location at a time. The chart, at Tab A, provides examples of the number of payday lending outlets in the top 30 counties and zip codes for payday lenders in 20 states, many of which are adjacent to military installations. In many cases there are over 50 payday lenders located around military installations. A process that requires a board to review so many locations on an individual basis would be unwieldy. To take action against one location and leave scores of other locations open to provide payday loans would have little impact on the problem. To consider evaluating all locations around a military installation as a single case would eliminate much of the due - process required in an AFDCB review, where the business is allowed to submit a letter to the Board and to negotiate a process that would allow the business to stay off of the oft limib 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 mniitary customers. The Department is not in the position to establish regulations to limit payday lenders and to provide the necessary oversight to ensure they comply. Furthermore the number of payday lenders around military installations makes the AFDCB process unwieldy for the purpose of reviewing and potentially making payday lenders off -limit businesses. The Department has included payday lending as one of its top issues to discuss with state governments to encourage policies and statutes that assist and protect Service members and their families. Through the National Govemors Association, the National Conference of State Legislature, the Conference of State Governments and American Legislative Exchange Council, as well as responding to representatives from several states, the Department has made legislators and administrators aware of its concerns over 2 Page 32 GAO.05-349 Predatory Lending 00053 Appendix III Comments from the Department of Defense payday lending. The Department has been encouraged to 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 tarns 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 IS years and its mulbarare nature suggest the need for attong federal legislation to limit or eradicate this high -cost form of borrowing that impacts all low-income consumers, not just low ranlmg military men bus. 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 coordinatloa by the executive agent for AFDCBs, the Army's Office oldie Provost Marshall General. These changes are: l) Direct that the AFDCBs meet quarterly to better engage the board and its constituent organisations 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," die title will apply to all Services. RECOMMENDATION 2; The GAO recommended that the Secretary of Defense direct the Assistant Sectary 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 1 S/Draft Report) DoD RESPONSE: CONCUR Page 33 GAO-05.349 Predatory Lending 00054 Appendix M Comments from the Department of Defense TABA Analysts from "Predatory Lending and the Military: The Law and Geography of "Payday" Loans In Military Towns State Installation Number of payda lending locations Within adjacent counties Within adjacent zip codes Alabama Fort Rucker 68 42 Maxwell AFB 96 19 Redstone Meenai 90 14 Arizona Luke APB 49 Davis Monthan AFB 37 California Twenty -Nine Palms USMC 161 7 NAS Lemoore 90 13 Edwards AFB 59 NSSan 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 Canon 179 46 Peterson AFB 129 36 Schriever AFB 129 Buckley APB 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 Bg1in AFB 17 Tyndall 5 Idaho Mountain Home 4 Kentucky Fort Campbell 18 8 Fort Knox 22 44 Louisiana Barksdale APB 67 45 Fort Polk 14 14 Missouri Fort Leonard Wood 36 8 Whiteman AFB 4 North Carolina Seymour Johnson 30 11 NCAS Cheny Point 19 6 Camp Leleune 14 10 Fort Bragg/Pope AFB 39 25 4 Page 34 GA0-05-349 Predatory Lending 00055 43'` Appendix III Comments from the Department of Defense VMS/ wngnarattereon AFB 30 17 Oklahoma Tinker APB 124 53 V Vance AFB S A Altus APB 4 F Fort Sill 10 7 South Carolina Shaw AFB 37 30 — M MC Beaufort/Parris Island 21 4 C Charleston AFB 95 44 F Fort Jackson 72 45 South Dakota Ellsworth AFB 42 40 Tennessee Millington 32 M Milan Arsenal s Texas Sheppard AFB 22 12 N NAS Corpus Christi 45 12 F Fort Bliss 61 19 G Goodfellow AFB 14 8 F Fort Hood 4 9 L Lackland AFB 124 9 F Fort Sam Houston 124 19 R Randolph AFB 124 Virginia Fort Lee 5 9 N Norfolk 230 50 F Fort Eustis 41 7 L Langley AFB 68 25 F Fort Story 102 11 Washington Fairchild AFB 55 32 F Fort Lewis 75 24 N NS Bremerton 169 6 M McCbord AFB 11 42 N NS Everett 1�3 2 NAS Whidbey Island 23 5 Page 36 GAO-06.349 Predatory Lending 00056 Appendix IV GAO Contact and Staff Acknowledgments GAO Contact Jack E. Edwards (202) 612-8246 Acknowledgments In addition to the individual named above, Leslie Bharadwaja, Alissa Czyz, Marion A. Gatling, Gregg Justice, III, David Mayfield, Brian Pegram, Minette Richardson, Terry Richardson, and Allen Westheimer made key contributions to this report. Page 36 GA0-06-349 Predatory Lending 00057 Appendix V Related GAO Products Military Personnel: More DOD Actions Needed to Address Servicemembers' Personal Financial Management Issues. GAO-05-348. Washington, D.C.: April 26, 2006. Credit Reporting Literacy: Consumers Understood the Basics but Could Benefit from Targeted Educational Efforts. GAO-05-223. Washington, D.C.: March 16, 2005. DOD Systems Modernization: Management of Integrated Military Human Capital Program Needs Additional Improvements. GAO-05-189. Washington, D.C.: February 11, 2005. Highlights of a GAO Forum: The Federal Government's Role in Improving Financial Literacy. GAO-05-93SP. Washington, D.C.: November 15, 2004. Military Personnel: DOD Needs More Data Before It Can Determine if Costly Changes to the Reserve Retirement System Are Warranted. GAO- 04-1005. Washington, D.C.: September 15, 2004. Military Pay: Army Reserve Soldiers Mobilized to Active Duty Experienced Significant Pay Problems. GAO-04-911. Washington, D.C.: August 20, 2004. Military Pay: Army Reserve Soldiers Mobilized to Active Duty Experienced Significant Pay Problems. GAO-04-990T. Washington, D.C.: July 20, 2004. Military Personnel: Survivor Benefits for Servicemembers and Federal, State, and City Government Employees. GAO-04-814. Washington, D.C.: July 15, 2004. Military Personnel: .DOD Has Not Implemented the High Deployment Allowance that Could Compensate Servicemembers Deployed Frequently for Short Periods. GAO-04-805. Washington, D.C.: June 25, 2004. Military Personnel: Active Duty Compensation and Its Tax Treatment. GAO-04-721R. Washington, D.C.: May 7, 2004. Military Personnel: Observations Related to Reserve Compensation, Selective Reenlistment Bonuses, and Mail Delivery to Deployed Troops. GAO-04-582T. Washington, D.C.: March 24, 2004. Page 37 GAO.05-349 Predatory Lending 00058 (00 • Appendix V Related GAO Products (360861) 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. Page 38 GAO-05.349 Predatory Lending 0005.9 4,7 GAO's Mission The Government Accountability Office, the audit, evaluation and investigative arm of Congress, exists to support Congress in meeting its constitutional responsibilities and to help improve the performance and accountability of the federal government for the American people. GAO examines the use of public funds; evaluates federal programs and policies; and provides analyses, recommendations, and other assistance to help Congress make informed oversight, policy, and funding decisions. GAO's commitment to good government is reflected in its core values of accountability, integrity, and reliability. Obtaining Copies of GAO Reports and Testimony The fastest and easiest way to obtain copies of GAO documents at no cost is through GAO's Web site (www.gao.gov). Each weekday, GAO posts newly released reports, testimony, and correspondence on its Web site. 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Orders should be sent to: U.S. Government Accountability Office 441 G Street NW, Room LM Washington, D.C. 20548 To order by Phone: Voice: (202) 512-6000 TDD: (202) 512-2537 Fax: (202) 612-6061 To Report Fraud, Waste, and Abuse in Federal Programs Contact Web site: www.gao.gov/fraudnet!fraudnet.htm E-mail: fraudnet@gao.gov Automated answering system: (800) 424-6464 or (202) 512-7470 Congressional Relations Gloria Jarmon, Managing Director, JarmonG@gao.gov (202) 612-4400 U.S. Government Accountability Office, 441 G Street NW, Room 7125 Washington, D.C. 20548 Public Affairs Paul Anderson, Managing Director, AndersonPl@gao.gov (202) 512-4800 U.S. Government Accountability Office, 441 G Street NW, Room 7149 Washington, D.C. 20548 PRINTED ON 16) RECYCLED PAPER 00060 SB 157.html Page 1 of 7 (P O¢ocgfa !flctni amsentioly Legislation w Housev Senate w information w Offices w Horne 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 defmition 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 defme crimes and declare penalties; to provide for civil remedies of borrowers; to provide for civil penalties; to provide for collection of civil penalties in actions by the state or by private parties; to declare a tax on profits from payday loans; to declare sites or locations on which payday lending is taking place to be public nuisances; to provide disclosure and notice requirements regarding loans made to members of the military; to provide for severability; to provide for related matters; to provide an effective date; to repeal conflicting laws; and for other purposes. BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: SECTION 1. Code Section 7-3-29 of the Official Code of Georgia Annotated, relating to penalties for violations of the "Georgia Industrial Loan Act," is amended by striking subsection (e) and inserting in its place the following: "(e) A claim of violation of this chapter against a duly licensed lender may be asserted in an individual action only and may not be the subject of a class action under Code Section 9-11- 23 or any other provision of law. A claim of violation of this chapter against an unlicensed lender may be asserted in a class action under Code Section 9-11-23 or any other provision of law." http://www.legis.statc.ga.us/legis/2003_04/fulltext/sb157.htm 0 0 0 61 5/26/2005 SB157.html -D. Page 2 of 7 SECTION 2. Title 16 of the Official Code of Georgia Annotated, relating to crimes and offenses, is amended in Code Section 16-14-3, relating to definitions concerning racketeer influenced organizations, by striking divisions (9)(A)(xxxvi) and (9)(A)(xxxvii) and inserting in lieu thereof the following: "(xxxvi) Article 8 of Chapter 9 of this title, relating to identity fraud, and Section 1028 of Title 18 of the United States Code, relating to fraudulent identification documents and information; (xxxvii) Code Section 33-1-9, relating to insurance fraud; or (xxxviii) Code Section 16-17-2, relating to payday loans." SECTION 3. Said title is further amended by adding a new Chapter 17 to read as follows: "CHAPTER 17 16-17-1. (a) Without limiting in any manner the scope of this chapter, 'payday lending' as used in this chapter encompasses all transactions in which funds are advanced to be repaid at a later date, notwithstanding the fact that the transaction contains one or more other elements and a 'payday lender' shall be one who engages in such transactions. This definition of 'payday lending' expressly incorporates the exceptions and examples contained in subsections (a) and (b) of Code Section 16-17-2. (b) Despite the fact that the Attorney General of the State of Georgia has opined in Official Opinion 2002-3 entered on June 27, 2002, that payday lending is in violation of Georgia law and despite the fact that the Industrial Loan Commissioner has issued cease and desist orders against various payday lenders in the State of Georgia, the General Assembly has determined that payday lending continues in the State of Georgia and that there are not sufficient deterrents in the State of Georgia to cause this illegal activity to cease. (c) The General Assembly has determined that various payday lenders have created certain schemes and methods in order to attempt to disguise these transactions or to cause these transactions to appear to be 'loans' made by a national or state bank chartered in another state in which this type of lending is unregulated, even though the majority of the revenues in this lending method are paid to the payday lender. The General Assembly has further determined that payday lending, despite the illegality of such activity, continues to grow in the State of Georgia and is having an adverse effect upon military personnel, the elderly, the economically disadvantaged, and other citizens of the State of Georgia. The General Assembly has further determined that substantial criminal and civil penalties over and above those currently existing under state law are necessary in order to prohibit this activity in the State of Georgia and to cause the cessation of this activity once and for all. The General Assembly further declares that these types of loans are currently illegal and are in violation of Code Section 7-4-2. The General Assembly declares that the use of agency or partnership agreements between in -state entities and out-of-state banks, whereby the in -state agent holds a predominant economic interest in the revenues generated by payday loans made to Georgia residents, is a scheme or contrivance by which the agent seeks to circumvent Chapter 3 of http://www.legis.state.ga.us/legis/2003_04/fulltext/sb157.htm 00062/26/2005 SB 157.html Page 3 of 7 Title 7, the 'Georgia Industrial Loan Act,' and the usury statutes of this state. (d) Payday lending involves relatively small loans and does not encompass loans that involve interstate commerce and certain payday lenders have attempted to use forum selection clauses contained in payday loan documents in order to avoid the courts of the State of Georgia, and the General Assembly has determined that such practices are unconscionable and should be prohibited. (e) Without limiting in any manner the scope of this chapter, the General Assembly declares that it is the general intent of this chapter to reiterate that in the State of Georgia the practice of engaging in activities commonly referred to as payday lending, deferred presentment services, or advance cash services and other similar activities are currently illegal and to strengthen the penalties for those engaging in such activities. (f) This chapter in no way impairs or restricts the authority granted to the commissioner of banking and finance, the Industrial Loan Commissioner, or any other regulatory authority with concurrent jurisdiction over the matters stated in this chapter. 16-17-2. (a) It shall be unlawful for any person to engage in any business, in whatever form transacted, including, but not limited to, by mail, electronic, the Internet, or telephonic means, which consists in whole or in part of making, offering, arranging, or acting as an agent in the making of loans of $3,000.00 or less unless: (1) Such person is engaging in financial transactions permitted pursuant to: (A) The laws regulating financial institutions as defined under Chapter 1 of Title 7, the 'Financial Institutions Code of Georgia'; (B) The laws regulating state and federally chartered credit unions; (C) Article 13 of Chapter 1 of Title 7, relating to Georgia residential mortgages; (D) Chapter 3 of Title 7, the 'Georgia Industrial Loan Act'; (E) Chapter 4 of Title 7, relating to interest and usury; (F) Chapter 5 of Title 7, 'The Credit Card and Credit Card Bank Act,' including financial institutions and their assignees who are not operating in violation of said chapter; or (G) Paragraph (2) of subsection (a) of Code Section 7-4-2 in which the simple interest rate is not greater than 16 percent per annum; (2) Such loans are lawful under the terms of: (A) Article 1 of Chapter 1 of Title 10, 'The Retail Installment and Home Solicitation Sales Act'; (B) Article 2 of Chapter 1 of Title 10, the 'Motor Vehicle Sales Finance Act'; or (C) Part 5 of Article 3 of Chapter 12 of Title 44, relating to pawnbrokers; (3) Subject to the provisions of paragraph (4) of subsection (b) of this Code section, such person is a bank or thrift chartered under the laws of the United States, a bank chartered under the laws of another state and insured by the Federal Deposit Insurance Corporation, or a credit card bank and is not operating in violation of the federal and state laws applicable to its charter; or (4) Such loan is made as a tax refund anticipation loan. In order to be exempt under this paragraph the tax refund anticipation loan must be issued using a borrower's filed tax return and the loan cannot be for more than the amount of the borrower's anticipated tax refund. Tax returns that are prepared but not filed with the proper government agency will not http://www.legis.state.ga.us/legis/2003_04/fulltext/sb157.htm 00063 5/26/2005 SB157.html "age 4= of 7 qualify for a. loan exemption under this paragraph. (b) Subject to the exceptions in subsection (a) of this Code section, this Code section shall apply 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 limiting the generality of the foregoing, the advance of funds to be repaid at a later date shall be subject to this Code section, notwithstanding the fact that the transaction also involves: (1.) The cashing or deferred presentment of a check or other instrument; (2) The selling or providing of an item, service, or commodity incidental to the advance of funds; (3) Any other element introduced to disguise the true nature of the transaction as an extension of credit; or (4) Any arrangement by which a de facto lender purports to act as the agent for an exempt entity. A purported agent shall be considered a de facto lender if the entire circumstances of the transaction show that the purported agent holds, acquires, or maintains a predominant economic interest in the revenues generated by the loan. (c)(1) A payday lender shall not include in any loan contract made with a resident of this state any provision by which the laws of a state other than Georgia shall govern the terms and enforcement of the contract, nor shall the loan contract designate a court for the resolution of disputes concerning the contract other than a court of competent jurisdiction in and for the county in which the borrower resides or the loan office is located. (2) An arbitration clause in a payday loan contract shall not be enforceable if the contract is unconscionable. In determining whether the contract is unconscionable, 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 (b) of this Code section on three prior occasions, then all subsequent convictions shall be considered felonies punishable by a fine of $10,000.00 or five years imprisonment or both. 16-17-3. Any person who violates subsection (a) or (b) of Code Section 16-17-2 shall be barred from the collection of any indebtedness created by said loan transaction and said transaction shall http://www.legis.state.ga.us/legis/2003_04/fulltext/sb157.htm 00064 5/26/2005 SB157.html Page 5 of 7 be void ab initio, and any person violating the provisions of subsection (a) or (b) of Code Section 16-17-2 shall in addition be liable to the borrower in each unlawful transaction for three times the amount of any interest or other charges to the borrower. A civil action under Code Section 16-17-2 may be brought on behalf of an individual borrower or on behalf of an ascertainable class of borrowers. In a successful action to enforce the provisions of this chapter, a court shall award a borrower, or class of borrowers, costs including reasonable attorneys' fees. 16-17-4. (a) Any person who violates subsection (a) or (b) of Code Section 16-17-2 shall be liable to the state for a civil penalty equal to three times the amount of any interest or charges to the borrowers in the unlawful transactions. (b) A civil action under Code Section 16-17-2 may be brought by the Attorney General, any district attorney, or a private party. Where a successful civil action is brought by a district attorney one-half of the damages recovered on behalf of the state shall be distributed to the office of the district attorney of the judicial circuit of such district attorney to be used by the district attorney in order to fund the budget of that office. 16-17-5. (a) There is imposed a state tax on all loans made in violation of this chapter. Such tax shall be administered and collected in connection with the Georgia income taxation of the person making such loans and shall be in addition to any other tax liability of such person. (b) The tax imposed by this Code section shall be at the rate of 50 percent of all proceeds received by a person from loans made in violation of this chapter. (c) A person making loans in violation of this chapter shall declare and return the proceeds subject to taxation under this Code section as a part of such person's Georgia income tax return. (d) The state revenue commissioner shall retain returns under this Code section apart from all other returns and shall not disclose any part of such a return for any purpose other than the collection of tax owed or a criminal prosecution involving tax matters. In a criminal proceeding under this chapter, a person's return of proceeds under this Code section and any evidence derived as a result of such return shall not be admissible. 16-17-6. In regard to any loan transaction that is alleged to be in violation of subsection (a) of Code Section 16-17-2, the trial court shall be authorized to review the terms of the transaction in their entirety in order to determine if there has been any contrivance, device, or scheme used by the lender in order to avoid the provisions of subsection (a) of Code Section 16-17-2. The trial court shall not be bound in making such determination by the parol evidence rule or by any written contract but shall be authorized to determine exactly whether the loan transaction includes the use of a scheme, device, or contrivance and whether in reality the loan is in violation of the provisions of subsection (a) of Code Section 16-17-2 based upon the facts and evidence relating to that transaction and similar transactions being made in the State of Georgia. If any entity involved in soliciting or facilitating the making of payday http://www.legis.state.ga.us/legis/2003_04/fulltext/sb157.htm 00065 5/26/2005 SB 157.htm1 Page 6 of 7 7 loans purports to be acting as an agent of a bank or thrift, then the court shall be authorized to determine whether the entity claiming to act as agent is in fact the lender. Such entity shall be presumed to be the lender if, under the totality of the circumstances, it holds, acquires, or maintains a predominant economic interest in the revenues generated by the loan. Furthermore, the trial court shall further be authorized to investigate all transactions involving gift cards, telephone cards, the sale of goods or services, computer services, or the like which may be tied to such loan transactions and are an integral part thereof in order to determine whether any such transaction is in fact a contrivance, scheme, or device used by the payday lender in order to evade the provisions of subsection (a) of Code Section 16-17- 2. 16-17-7. All corporations, limited liability companies, or other business entities which are engaged in payday lending in the State of Georgia are prohibited from obtaining any certificate of authority from the Secretary of State or from the Department of Banking and Finance and engaging in such payday lending activity in the State of Georgia shall result in the revocation of any existing certificate of authority. 16-17-8. The site or location of a place of business where payday lending takes place in the State of Georgia is declared a public nuisance. 16-17-9. (a) In addition to the other obligations and duties required under this chapter, if the customer is a member of the military services of the United States or a spouse of a member of the military services of the United States, the following duties and obligations apply to any payday lender: (1) The lender is prohibited from garnishment of any military wages or salaries; (2) The lender is prohibited from conducting any collection activity against a military customer or his or her spouse when the military member has been deployed to a combat or combat support posting for the duration of the deployment; (3) The lender is prohibited from contacting the commanding officer of a military customer in an effort to collect on a loan to the military member or his or her spouse; (4) The lender agrees to be bound by the terms of any repayment agreement that it negotiates through military counselors or third -party credit counselors; and (5) The lender agrees to honor any statement or proclamation by a military base commander that a specific payday lender branch location has been declared off limits to military personnel and their spouses. (b) If the customer is a member of the military services of the United States or a spouse of a member of the military services of the United States, the following disclosures shall be made in writing by the payday lender: (1) A notice that the lender is prohibited from garnishment of any military wages or salaries; (2) A notice that the lender is prohibited from conducting any collection activity against a military customer or his or her spouse when the military member has been deployed to a http://www.legis.state.ga.us/legis/2003_04/fulltext/sb157.htm 00066 5i26/2005 SB 157.html Page 7 of 7 715 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/sb157.htm 00067 5/26/2005 7(0 5LS 1 S / - The lieorgia Payday Lending Law (2004) -- Uenter tor xesponslble Lending 'age ,_ of : E lI I f R f 01 zNITSPONSRE4E LENDING kiunr�m Medla Gunter Predatory ► Mortgage Landing Payday Lending ► Overview Payday Lending Basks Nine Signs of a Predatory Payday Loan Fact v. Fiction: Payday Industry Claims Alternatives to Payday Lending Payday Lending Legislation 2004 Payday Lending Research Payday Lending Victims Other Abusive ► Financial Practices Predatory Lending ► and North Carolina Research Library ► Federal & State ► Update For Consumers ► About the Center for ► Responsible tending Stay informed. Sign up now to receive news and updates from CRL. CLICK TO ll® GniBE► Share your experience with predatory loans. A RESOURCE FOR PREDATORY LENDING OPPONENTS Contact Us NI:14/3 rchlva SB 157 - The Georgia Payday Lending Law (2004) GEORGIA PROTECTS CONSUMERS WITH STRONG PAYDAY LENDING LAW A new Georgia law prescribes harsh felony penalties for lenders who make loans of $3,000 or less in violation of Georgia's existing lending and consumer protection laws. Passed with bipartisan support and signed by Gov. Perdue in April 2004, SB 157 caps small consumer loans at 60 percent per year, Georgia's small loan usury rate. The law explicitly bars non -bank lenders from partnering with out-of-state banks in order to avoid Georgia's usury limit. Four out-of-state banks that make loans through Georgia payday lenders have filed lawsuits in federal court challenging the Georgia law. CRL and other advocacy groups including AARP, the Consumer Federation of America, the National Consumer Law Center, and Georgia Watch have filed amicus curiae briefs supporting the Georgia law. For more information on this important legislation: Text of SB 157, the Georgia Payday Lending law. Summary SB 157, the Georgia Payday Lending law. © Copyright 2005 Center for Responsible Lending. All Rights Reserved. Privacy Policy i NEWS HEADLIN' • Payday loans o help -- at a prb Seattle Post -In 5/24/05 • Paying More Fe Loans? CBS News, 5/1 • Payday loan bil House Austin America Statesrnan, 5/: • All Payday Hea HOTTEST TOPIC • CRL Paper: Tht Overdraft Loan (pdf, 05/26/05 • Cakes Testifies Predatory Lend Legislation (pet • CitiFinancial UK Industry-Leadit Practices (05/1 • Car Title Lendii Secured by Cai Borrowers in D (04/14/05) • House Bills on Lending (H.R. : H.R. 1295) (03 4 JOB OPENINGS http://www.responsiblelending.org/payday/pl_1eg2004.cfm 00068 5/26/2005 The N.C. Payday Lending -- Center for Responsible Lending Page 1 of 3 7 (lill1A FOR RESPONSIBLE LENDING I lomaj Media Cuntgr Predatory ► ► ortgage Lending Payday Lending ► Other Abusive ► Financial Practices Predatory Lending ► and North Carolina N.C. Predatory Mortgage Lending Law N.C. Mortgage Broker Licensing Law N.C. Payday Lending The N.C. Coalition for Responsible Lending Research Library ► Federal & State ► Update Far Consumers ► About the Center for ► Responsible tending ;i Stay Informed. Sign up now to receive news and updates from CRL. CLICK IDsunscrueE► Share your experience with predatory loans. > > A RESOURCE FOR PREDATORY LENDING OPPONENTS Contact tls Wows Archive Tate Action Situ Map The N.C. Payday Lending 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. Al NEWS HEADLINI • Latinos falling • predatory lend L.A. Daily New • 'Bounced-ched rules draw crib Bankrate.com • Finance, 5/26/' • Predatory lendi debated USA Today, 5/: • All Headlines HOTTEST TOPIC • CRL Paper: Tht Overdraft Loan (pdf, 05/26/05 • Eakes Testifies Predatory Lend Legislation (pd • CltiFinancial Uf Industry-Leadii Practices (05/1 • Car Title Lendii Secured by Ca Borrowers in D (04/14/05) • House Bills on Lending (H.R. : H.R. 1295) (03 4 JOB OPENINGS http://www.responsiblelending.org/predlend_nc/payday.cfm 00069 5/26/2005 78 TheN.C. Payday Lending -- Center for Responsible Lending '?age 2 of 3 "It's true that North Carolinians with low -paying jobs need sources of emergency money. What they don't need is high-priced loans that drive them to greater desperation." News & Observer editorial 8/29/02 In October 2002, Ace Cash Express Inc. and Goleta National Bank reach an agreement with NC Attorney General Cooper to stop their payday lending activities for one year and pay civil penalties of $325,000. Payday Lending in North Carolina (pdf 2002) Sign on letter to legislators re: payday lending (pdf 2002) The Truth about NC Payday Lender Claims (pdf 2002) 2003: In February, the Office of the Comptroller of the Currency, which regulates nationally chartered banks, reaches agreement with Advance America, Cash Advance Centers Inc. and Peoples National Bank to end their payday lending arrangement in North Carolina and Pennsylvania. The bank pays $175,000 in civil penalties. The OCC says that, after its fourth such enforcement action since January 2002, no more payday lenders are conducting business through national banks. Back to Top What's Happening Now SB 947 has been introduced in the 2005 NC General Assembly. If you would like to receive updates, join the Coalition for Responsible Lending. Back to Top N.C. Coalition for Responsible Lending Position on Payday • We oppose any bill that reauthorizes .payday lending without major changes to protect consumers. Trapping low-income borrowers in an escalating cycle of high -cost debt was never the intent of the original NC General Assembly statute in 1997. • We support changes to state check cashing and/or consumer finance laws that create non -predatory small loan products which, while carrying higher -than -average rates and fees because of higher risks, do not charge the 400- 500% effective interest rates promoted by the payday industry. • We also condemn the actions of payday lenders who are ignoring NC law by operating under the guise of being "facilitators" of loans made by out-of-state banks. • Finally, we call on NC legislators to ensure that the broad spectrum of consumer advocates and representatives - including the Attorney General and Commissioner of Banks- http://www.responsiblelending.org/predlend_nc/payday.cfm 0 0 0 7 D 5/26/: OD5 The N.C. Payday Lending -- Center for Responsible Lending Page 3 of 3 will be included in the formulation of any legislative solution that may be proposed. Back to Top Six Principles of Responsible Payday Lending • Minimum loan term no shorter than 90 days • Interest rate no more than 60% • Partial repayments with no prepayment penalty • No more than $300 outstanding at one time • No mandatory arbitration clause • Prohibition against out of state banks violating NC law Back to Top What YOU Can Do loin the NC Coalition for Responsible Lending to help combat predatory payday lending in NC. Back to Top © Copyright 2005 Center for Responsible Lending. All Rights Reserved. ( Privacy Policy http://www.responsiblelending.org/predlend_nc/payday.cfm 000715/26/2005 80 Page 1 of 4 0�$lA IiEnil Ikuserribili Legislation v Housev Senate . Information ' Offices T Home SB 157 - Payday Lending; deferred presentment or advance cash services; regulate unlawful transactions (1) Cheeks.Don 23rd (2) Cagle.Casey 49th (3) Stephens.Bill 51st (4) Starr,Terrell 44th SC: B&FI HC: B&B 04/09/04 - Senate Date Signed by Governor First Reader Summary A BILL to be entitled an Act to amend Title 16 of the Official Code of Georgia Annotated, relating to crimes and offenses, so as to declare a legislative intent to prohibit activities commonly referred to as payday lending, deferred presentment services, or advance cash services and other similar activities; to provide that it shall be unlawful to engage in the business of making certain small loans; to provide for exemption for licensed and regulated activities; to define crimes and declare penalties; to provide for civil remedies of borrowers; to provide for civil penalties; to provide for collection of civil penalties in actions by the state or by private parties on behalf of the state; to provide for taxation of proceeds received; to provide for related matters; to repeal conflicting laws; and for other purposes. Electronically Recorded Votes Date Time Vote No Yeas Nays NV Exc Description 4/07/03 01:01 PM Senate 046 006 002 002 PASSAGE BY SUBSTITUTE V0233 2/12/04 01:49 PM House 033 116 025 006 TABLE V0675 2/12/04 01:52 PM House 092 080 002 006 Massey, Sailor amend V0676 2/12/04 01:54 PM House 053 115 006 006 Roberts #1 V0677 2/12/04 01:55 PM House 038 132 004 006 Roberts #2 V0678 2/12/04 02:01 PM House 063 109 002 006 Ehrhart, Coan V0679 http://www.1egis.state. ga. us/legis/2003_04/sum/sb 157.htm 0 0 07 2 5/26/2005 Page 2 of 4 2/12/04 02:08 House PM V0680 2/12/04 02:11 PM House V0681 078 095 001 006 Ehrhart, Sailor 085 086 003 006 Massey amend recon 2/12/04 2/12/04 2/12/04 2/12/04 02:13 PM 02:15 PM 02:16 PM 02:22 PM House V0682 House V0683 House V0684 House V0685 047 069 064 087 121 101 103 082 006 004 007 005 006 006 006 006 Lewis, Greene Lewis amend Sailor, Sheldon Ehrhart, Floyd 2/12/04 02:23 PM House V0686 077 091 006 006 Ehrhart, Floyd recon 2/12/04 2/12/04 02:25 PM 02:26 PM House V0687 House V0688 069 150 100 020 005 004 006 006 Sailor, Sheldon recon PASS 2/17/04 2/17/04 2/24/04 3/04/04 12:33 PM 12:35 PM 11:42 AM 01:00 PM Senate V0765 Senate V0766 House V0758 Senate V0853 019 047 078 049 031 003 092 002 001 001 006 001 005 005 004 004 MOTION TO TABLE AGREE TO HOUSE SUBSTITUTE AS A Agree Sen am to H sub ADOPT CONFERENCE COMMITTEE REP 3/04/04 12:23 PM House V0830 Date 02/18/03 03/24/03 03/25/03 04/07/03 04/07/03 132 038 009 Bill History 001 Action Senate Read and Referred Adopt CCR Senate Committee Favorably Reported Senate Read Second Time Senate Passed/Adopted House First Readers http://www.legis.state.ga.us/legis/2003_04/sum/sb 15 7. h tm 00073 5/26/2005 ?age 3 oft. 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 00565/hss SB 157/HCSFA Floor amend AM 14 06 Floor amend AM 34 00 CCR to SB 157 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/sb 157.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://www.legis.state.ga.us/legis/2003_04/sumisb 157.htm 00075 5/26/2005 KnowledgePlex: Article: Texas Bill Targets Companies Seeking to Profit From Soldiers' 1... Page 1 of 1 Texas Bill Targets Companies Seeking to Profit From Soldiers' Deployment John Moritz Fort Worth Star -Telegram April 12, 2005 LexislNlexis- AUSTIN — High -interest lending companies that target soldiers bound for the war zone would be barred from engaging in high-pressure collection tactics and wage garnishing if a bill approved Monday by the Texas Senate becomes law. "Anywhere there are military posts, there are predatory lenders at the gate," said state Sen. Eliot Shapleigh, D-El Paso, whose legislation passed without opposition. "When soldiers are off fighting a war for the United States, we should fight • here for them." The legislation came after reports from Fort Bliss, near El Paso, and Sheppard Air Force Base in Wichita Falls and other bases that U.S. service members and their families were being hounded for money owed to so-called payday lenders. Shapleigh said the lenders, who provide quick cash on the promise that it will be repaid in installments each payday, can charge fees and interest as high as 780 percent. A $ 1,000 loan can end up costing a soldier $ 4,000 in a year, he said. If Senate Bill 1479 becomes law, the lenders would be prohibited from gamishing service members' wages or conducting collection activity against them or their spouses while they are deployed to a combat zone or from contacting their commanders to force repayment of the debt. Service members who fail to pay their bills or abuse their credit can face consequences under military regulations, Shapleigh said. Another bill aimed at military personnel in Texas passed last week. Shapleigh's Senate Bill 506 would bar insurance companies from selling life insurance policies to military personnel without telling them about less expensive policies offered by the federal government. Shapleigh said some service members have paid $ 100 a month for policies that pay $ 29,000. They can purchase policies through the federal government that offer benefits of $ 250,000 for less than $ 17 a month. State Sen. Craig Estes, R-Wichita Falls, endorsed both bills, which now go to the House. "It's good for Sheppard Air Force Base and good for the military," Estes said." To see more of the Fort Worth Star -Telegram, or to subscribe to the newspaper, go to http://www.dfw.com. Copyright © 2005, Fort Worth Star -Telegram, Texas Distributed by Knight Ridder[Tribune Business News. For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail rprints@krtinfo.com. http://www.knowledgeplex.org/news/84465.html?p=1 00076 4/20/2005 Fighting 'asset stripping' in San Diego I The San Diego Union -Tribune Siga2 tom Fighting 'asset stripping' in San Diego March 29, 2005 Pa$e 1 of: 85 Cal PRtNTTHIS 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-yam-old woman who has two kids, ages it 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 Deceniber, whenthe landlord hiked her rent, the woman couldn't pay on time and was evicted. She was homeless from Christmas Eve until the end of January. She still owes back rent to her former landlord, and she now has a bad credit rating — which means she will be turned away by most loan officers or landlords. She and her children now live in a single room that Halpern and a church helped her find. Desperate, this woman is a prime target for asset stripping, a term used by critics to describe the impact of so-called predatory lenders on individuals and communities. In July, SPIN, a San Diego network of 2300 low-income families working toward self-sufficiency, and the Caring Council, focused on poverty policies, created San Diego's Coalition for Fair Banking. The coalition is led by Bill Oswald, assistant dean at Springfield College's San Diego campus, and Halpern. So far, i4o individuals and organizations, including the League of Women Voters, have joined the coalition. Its goal: local reform of what has become an estimated $8o billion national high -cost lending and check -cashing industry. The industry has grown exponentially over the last decade, as traditional lending institutions withdrew from the poorest neighborhoods. Other companies moved into the vacuum, including pawn shops, rent -to -own stores and the new heavy -hitters, payday lenders and check -cashing companies. These businesses also popped up around military bases, targeting military families. Payday lenders offer loans against future paychecks, at interest rates of up to 50o percent; the more often you borrow, the higher the interest rate becomes. Check -cashing companies typically charge fees at up to 3 percent of the face value of a payroll or public assistance check, and 15 percent for personal checks. That may not sound like much, says Halpern. "But if you're a parent raising a child on a basic monthly welfare check of less than $600, 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.. 2/ 005 g% Fighting 'asset stripping' in San Diego 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 Diegb 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 vla a -mall at rlouvfocts.com or vla www.thefuturesedge.com. »Next Story» Find this article at: http://www.signonsandiego.com/uniontrib/2b05b329/news_Izi e291ouv.html r Check the box to Include the list of links referenced In the article. 00078 http : //s i gn ons andi e g o . printthis. c 1 i c kab ility .com/pt/cpt?action=cpt&title=Fighting+%27 ass ei... 3/29/2005 ealirbrnja .LAeparrment or L;orporanons - cAi.,t rlxcruA Lrrt C1ttc .. 11111.7.11 www.wrp.w.gvyrpsyk& California Home S:orporatfons Home About the Department tlistorlcal Background Press Room Executive Office Office of Public Affairs lffice of Management & Budge( CHffce of Law & Legislation Securities Regulation Division Enforcement Division Contact Ust Financial Services Division About the Division Complaints Contact Us Escrow Agents: Employee Disciplinary Actions FAQ's Fipance and Lending Education Applications & Forms Licensee Listing 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 oall 1-866-ASK-CORP (1-866-275-2677). tinWnma OP CORPORATIONS CALIFORNIA'S INVESTMENT B FINANCING AUTHORITY - ESTABLISHED 1113 Monday, February 28, 2005 search 0 My CA O Corp's website CAUFORNIA DEFERRED DEPOSIT TRANSACTION LAW The California Deferred Deposit Transaction Law ("MOTO is contained in Division 10 of the California Financial Code commencing wit Section 23000. The regulations under the CDDTL are contained in Chapter 3, T1tle 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 wll become operative an December 31. 2004 (or eerier if changed by ExecWve Order of the Governor). On the operative date. the responsBiiity under the CDOTL for licensing and regulating persons engaged in the business of Mitered deposit transactions (I.e. deferred deposit of personal check) will be transferred from the Department of Justice to the Department of The California Department of Corporations is in the process of approving applications for the California Deferred Deposit Transaction Law (CDDTL). A Rd of applications that have been approved MN be updated at least once each day. Please go to Approved Applications Listing 1poll to review the alphabetical Itd of economies, 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 CDOTL. The CDDTL defines a 'deferred deposit originator as any person who offers, odgkwles or makes a defend deposit transaction. Deferred deposit transaction means a transaction whereby a person driers depositing a customers personal check untl a specific date, pursuant to a written agreement, as provided in Financial Code Section 23035. Although deterred 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 ded from the definition of licensee and are therefore not subject to the CDDTL • A state or federally chartered bank, thrift, savings association, or industrial loan company. • A retail seller engaged primarily in the business of selling consumer goods, including consumables, to retail Myers that cashes cheats or issues money orders for a minimum fee not exceeding $2 as a service to its customers that is incidental to Ns main purpose or business. 'Persons that are licensed under the CDDTL may be an individual, corporation. a partnership, a limited liability company, a joint 'venture, an association, a joint stock company, a trust, an unincorporated organization, a 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 loansactions. A licensee with one or more licensed locations may Rhu a short fore license application established by the Commissioner. Applications are processed in the order they are received. A. The requirements for obtalnhg a license are as follows: 1. For each location, submit an application with the appropriate mdkibits, an application fee of $200, an investigation fee of $100, and the assessment payment ((applicable). All teas and the assessment are non-refundable. An application on a shaft tone established by the Commissioner may be submitted for each additional location that the applicant intends to engage in the business of deferred deposit transactions. Shod form appnceliors 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 surely bond in the amount 41325,000 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 Me applicant has a net wodh of at least $25,000. After licensers, the licensee shall be required to maintain a net worth of at least $25,000 at all limes. 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, 1O% or more of the outstanding equity interests of the applicant; and • Other key persons involved, such as managers/members, trustees, any other officers with direct responsibility for the conduct of applicant's deferred deposit activity, and the persons who will be in charge of the place of business. 1 of 3 2/28/2005 10:00 AM mean -7 2of3 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 lost 10 yews W been convicted of or pleaded nob contendere to a crime, or (B) committed any act Ong dfshonesly, fraud, or deceit, If the crime or act is substantially related to the qualifications, functions, or duties of a person engaged business of deferred deposit transaction. B. The fdbwing are some of the requirements a deferred deposit originator must comply with after the Department et' 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 rata share of all costs and expenses reasonably Incurred In the administration of the CDDTL. The assessment notices shall be mailed to each licensee on of before the 201h day of May each year and mud be paid will* 30 days. The failure to pay the assessment by the due date may result In penalties, andlo suspension or revocation of the kensce. 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 determine I the licensee Is complying with the provisions of the CCDTL and with the Nis and regulations promulgated by the Commissioner. Each licensee shall mrntaln any other ;words as required by the Commissioner. 3. The Commissioner may examine the business, books and records of the licensee any time, but not lees than once every two years. The Commissioners representatives shah have free access to the offices and places d business, books, a000unts, papers, records, files, safes, and vaults of the licensee. The licenses shall pay the costs tithe examinalion. 4. Licensee mud maintain a surety bond et all times in the amount or $25,000. The bond shall be payable b the Commissioner and issued by an insurer authorized to do business in this state. For licensees with multiple licensed locations, only one surely bond in the amount of twenty-five thousend dollars ($25,000) is required. The bond shell be used for the recovery of expenses, fines, and fees levied by the Commissioner or for losses or damages hncurrod by consumers as the result of a licensee's noncompliance with the requirements of the CDDTL. 5. A licensee, regardless of the number of locations, must maintain a net worth d at least $25,000 at all liras. 6. An advertisement disseminated primarily in California to a deferred 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 Corporations pursuant to the COML. The Commissioner may require ticerrees to maintain a tie of all 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 shall port a complete, detailed. and unambiguous schedule of fees in a conspicuous locetion in the unobstructed view of Na public within the licensee's location. N. 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 place of business. 9. Licensees are required to notify the Department of any change in location at least 10 days prior to the move. Failure to do so may subject the licensee to a civil penalty net to exceed $500. 10. The license, along with wry 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 mud file an annual report by March 15 of each year commencing on March 16, 2006. The licensee's annual report shall be kept confidential. The annual report shall Include the following information for the previous calendar year: • The total number and dollar amount of deferred deposit transactions made by the licensee. • The total number of indMdual customer: 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 LexisNexis(TM) Academic - Document 4Return to full LexisNexIsTM Academic Copyright 2004 The San Diego Union -Tribune The San Diego Union -Tribune March 9, 2004 Tuesday SECTION: NEWS; Pg. A-1 LENGTH: 1645 words HEADLINE: Payday loans have financial dark side; High charges lead to lasting cycle of debt, officials warn BYLINE: Jeff McDonald and Norberto Santana Jr:, STAFF WRITERS BODY: C FEE. ^�' P',,' S: 31 ci; .. 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 itsadded 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. cl1Y 00081 http://80-web.lexis-nexis.com.libproxy.sdsu. edu/universe/printdoc 10/5/2004 LexisNexis(TM) Academic - Document Page 2 of5 gQ "This is just one example of lawmakers in California putting the interests of businesses over the interests of low-income consumers," said Shelley Curran of the Consumers Union in San Francisco. "It's a product that captures people in a cycle of debt." Nowhere else in California is likely to be more affected by tighter controls -- once they take effect -- than San Diego County. With a huge military presence and proximity to the U.S.-Mexico border, this region has one of the highest concentrations of payday lenders in the state. Officially known as deferred deposits, payday advances are instant loans of a few hundred dollars that are supposed to be repaid in 30 days or less. In a typical $300 transaction, the borrower collects $255 and agrees to allow the lender to cash the check, usually two weeks later. All too often, however, borrowers are unable to cover the check within two weeks and agree to extend the loan. Industry research shows that 40 percent of customers renew their loans five or more times. Each loan comes with a new $45 fee, which can push annual interest rates as high as 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, buthe declined to release information about complaints. Big business here There is no public data available on the volume of payday loans made in the United States each year. Industry consultants placed the number of loans last year at between 95 million and 100 million -- totaling about $25 billion. The fees for those loans were estimated between $4 billion and $4.3 billion. Check cashers reported some $55 billion in transactions over the same period. The new legislation calls for payday lenders to submit detailed annual loan information to the California Department of Corporations by 2006 so regulators can keep 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 Depaituient of Justice. Mayor Terry Johnson did not return messages requesting an interview on the issue. There is a three-way tie for second among El Cajon, Santa Ana and Rialto, with 14 apiece. National City, Miramar, City Heights, Chula Vista and Clairemont all have 10 or more license holders. http://80-web.lexis-nexis.com.libproxy.sdsu. edu/universe/printdoc 00082 10/5/2004 LezisNexis(TM) Academic - Document Page 3 of 5 1� 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 Inzurtza says, he will push another law that would force such high -cost financial services companies out of his town altogether. "These businesses are taking money from the residents of our city," the mayor said. "It's our responsibility to protect the health and the welfare of our citizens, not just clean the streets and trim the trees." Experts like Christopher Peterson, a law professor at the University of Florida, said more and more cities are turning to zoning laws because land -use policy is one of the few ways local governments can exercise control over unwelcome businesses. "Cities are finding that payday lenders are a blight in the community," said Peterson, whose book "Taming the Sharks: Towards a Cure for the High -Cost Credit Market," is due out this spring. Peterson said other people and businesses that rely on the regular monthly payments of nearby customers — landlords, utility companies, grocery stores -- can be adversely affected by having so many high -interest lenders in any one neighborhood. Low -earning borrowers who fall into debt may be unable to pay routine bills, he said. "It depresses the viability of entire segments of consumer markets." James Bliesner, who oversees a task force that examines community reinvestment and financing practices across San Diego County, said payday lenders and check cashers have carved out a niche market. "They're pariahs, but they're filling a gap that traditional lenders are not filling," said Bliesner, who has begun tracking payday lending abuses and is pushing traditional banlcs 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 LexisN exis(1 M) Academic - Document Page 4 of 5 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 of your check," he said. Most payday loan customers do not welcome talking about why they need money quickly. Like many borrowers approached in recent days, a sailor in the Midway area of San Diego declined to discuss .the terms of his loan. "This is my first one," was all he would say before he drove off. As oversight of such businesses increases, many industry representatives have circled the wagons. They spend millions of dollars to plead their case to lawmakers and to the public. The trade associations stress the convenience and service their members provide, saying that most of their clients understand exactly what they are getting into when they take an advance. Payday borrowers tend to be younger, lower middle-class families. More than 40 percent own homes and 19 percent hold a college degree, according to Community Financial Services of America, an industry group. Customers also must have a checking account and show proof of employment. "They do not have access to credit cards, they don't want to borrow from family members," said Rick Lyke of Financial Service Centers of America, another association that represents check-cashers and payday lenders. "We're talking about short-term, emergency cash. You can't go into a bank and say 'I need $200 to fix the brakes on my car.' " Jean Ann Fox of the Consumer Federation of America said that despite fresh scrutiny from politicians, California has one of the poorest records among all 50 states when it comes to regulating check cashers and payday lenders. "For a state as large as that, and for the amount of business being done there, you would think the public would not put up with that," said Fox, who tracks the industry from coast to coast. "Of course, the people who write the rules probably don't have to write checks without money in the bank." GRAPHIC: 3 PICS; 1 CHART; CAPTIONS: 1. Maria Quiroz collected funds that were transferred to her yesterday from Chicago at Checks Cashed 4 Le$$ in National City. 2. Advance paycheck loans are only one of many services offered by Checks Cashed 4 Le$$ in National City. Owner Salam Mahmood said such businesses are necessary and provide financial services at competitive rates to people who would otherwise not have access to them. (A-8) 3. In National City, where check cashers and payday lenders are concentrated along two thoroughfares, the City Council passed a moratorium on such http://80-web.lexis-nexis.com.libproxy. sdsu.edu/universe/printdoc 0008'' 10/5/2004 J,exisNexis(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 1 BRIAN CRAGIN / Union - Tribune LOAD -DATE: March 11, 2004 http://80-web.lexis-nexis. com.libproxy. sdsu. edu/universe/printdoc 00085 10/5/2004 67 Editions of the North County Times Serving San Diego and Riverside Counties News Search Home News Noun CoctsavInesi TIWOITITtiRtrAtil P,etos calp $.ibscnbc Monday, January 10. 2005 Contact Us Cn'end.r 414`n'es abs Classified Search Advertising Circulation Reader Services Traffic Stocks Entertainment Features Columnists Cor Coastal Inland Californian State National Special Reports Columnists Letters Of Web Search Sports Business Opinion Archives 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 ciwies, 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 Scnd Click now to Send us Your news. i When it matters to North County, trust your North County Times http://ww'w.nctimes.com/articles/2005/01/09/business/news/l7 17_261 _8_05.txt Keyword Se I , Send Us Your Local* Click HE S AL %to HARDC‘ Arts & Entertat Magazirn Own A Plec Of Histt A Thous Miles 1 Baghd; 1 / 11/2005 00086 AtV3 LL� A.vAuat, .A ualA...- a IVA 1.41, L)U.U✓la.6V Lll1U rJVll WI"! \. JL iV Y tii J1UG VVway '.U1u1iuuJW 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 17 261 8 05.txt News Upt ...more AP. 1/1 1/2005 0008( 969 v. "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 1 were the commanding officer of that base, 1 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.com. 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://wvw.nctimes.com/articles/2005/01/09/business/news/17_17_261 8 05.txt 1/11/2005 00088 North County '.Tunes - North San Diego and Southwest Kiversi 1e County coiurnnists rage w 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 Isid Print this story Email this story Related Advertising Links Payday Lending Apply For Your $500 Loan Today. Nothing To Fax, No Credit Check! www.F as tCashExpert. cam Payday Loans Up to $1000 Immediate Approval: No Credit Check Get Your Cash within Minutes - Now! www.PersonalLoans123.com Home News Sports Business Opinion Entertainment Features Columnists Cor webmasterrnctimes.com ® 1997-2005 North County Times - Lee Enterprises htt.p://www.nctimes.com/articles/2005/01/09/business/news/17 17 261 8 05.txt editor c'r 1 / 11 /2005 00089 the dti THE DEPARTMENT OF TRADE ANO 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. mu w ins 0OH 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 Bair (2002: note 14), citing State PIRG study, "Show Me the Money!" (2000). 7 Caskey (1994); Johnson (2002). 2 00091 . ioO the dti THE DEPARTMENT OF TRADE AND INDUSTRY SOUTH APRICA 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 afee 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 retum 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 3 Id., 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 ro i 00, the dti THE DEPARTMENT OF TRADE AND INDUSTRY SOUTH APRICA 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 (F1SCA) Code of Conduct (www.fisca.orq) and the Community Financial Services Association of America (CFSA) Best Practices (www.cfsa.net). 6 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 concemed 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? 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:1° 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 orconsumer 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.» 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, wwwocc. treas. goy. R. Riccobono, "Memorandum for Chief Executive Officers, " 0 TS, November 27, 2000. 5 00094 to 3 the dti THE DEPARTMENT OF TRADE ANO INDUSTRY SOUTH APRICA 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.t2 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 govemments have responded to a phenomenon comparable to South Africa's money -lending explosion. References Barr, Michael (2002), "Access to Financial Services in the 21st Century', Notre Dame Joumal 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 Terri Financial Needs", www.fisca.orq/whiteoaper.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 10 Fact Sheet On Payday Loans Page 1 of 4 Consumers Union Nonprofit Publisherof Consumer Reports Rtut Health Food Telecom Financial Product Other Care Safety & Utilities Services Safety Issues About • Newt • Retourees • Tips • Support • Contact • Swarth 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 ti me.(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 ra 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) ConverseIy, 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. tiVHAT 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 fmance 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 http://www.consumersunion.org/finance/paydayfact.htm 00097 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-term 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 1O% 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, ice 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 ] [ TIpS ] [ Search ] [ l Please contact us at: http://www.consumersunion.o.rg/contact.htm All information ©1998 Consumers Union 00099 http://www.consumersunion.org/finance/paydayfact.htm 7/23/2004 08 Quantifying the Economic Cost of Predatory Payday Lending Keith Ernst, John Farris, and Uriah King December 18, 2003 Center for Responsible Lending 302 West Main Street Durham, NC 27701 http://www.responsiblelending.org 00100 Executive Summary Our analysis of quantitative data reveals that payday lenders collect the vast majority of their fees from borrowers trapped in a cycle of repeated transactions, where borrowers are forced to pay high fees every two weeks just to keep an existing loan outstanding that they cannot afford to pay off. This cycle (the "debt trap") locks borrowers into revolving, high-priced short-term credit instead of meeting the need for reasonably - priced, longer -term credit. The Center for Responsible Lending conservatively estimates that_predatorypayday lending fees = those extracted from borrowers caught in a debt trap of repeated transactions — costs U.S. families $3.4 billion annually. t Further, we find that this figure is driven by the churning of payday loan accounts as follows: * 91 % of all payday loans are made to borrowers with five or more payday loans per Year; * Two in three borrowers (66%) incur five or more payday loans per year, while nearly one in three (31%) receive twelve or more loans per year; and * Borrowers, on average, receive 8 to 13 payday loans per year. Introduction The payday lending industry, which was virtually non-existent ten years ago, has experienced explosive growth — from $10 billion in 2000 to $25 billion in 2003.2 Payday loans are short-term loans for immediate cash, typically secured by a borrower's written check or authorization for automatic withdrawal from the borrower's bank account. They. are called `payday loans" because they are marketed as a tool for cash -strapped borrowers to make it to the next paycheck. • To get a loan, a borrower gives a payday lender a postdated check (e.g., dated on the borrower's next payday) and receives cash, minus the lender's fees.3 On a $300 payday ev 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.og/FedLetter.html, last verified December 16, 2003). 2 Stephens Inc., "Payday Advance — The Final Innings: Standardizing the Approach" at p5 (September 22, �20(10,)r (year 2000 data), Carr, James H. and Schuetz, Jenny,' ,.., ,� �r�� 7-9 • q ...�, GWiittTu it1 ,Q31�Vmvidarli' Awn-i:a rY v..—..!_' ,,,p,t� w V� i 9aT,a n ent ustry Developments " eptern er 26; 2003): (year 200. �tala ,belt Fens: "Payday Lending A Business Model that Encourages Ciireine 13orroiving," Economic Ijevelooment Quarterly, Vol. 17, No. 1, at p8 (February 2003). 3 Alternatively, borrowers may authorize the lender to electronically draw down a future amount from their account. _ 2 IOW 00101 10 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 find (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 its Churning Payday Borrowers Examinations by state regulators suggest that rollovers and back-to-back transactions are widespread in the payday lending industry (see Table 1). In fact, studies suggest that the entire payday lending industry relies on a business model that encourages chronic borrowing.9 6 See Testimony of Lisa A. Engelkins submitted to the North Carolina State Senate Commerce Committee (June 17, 2003) (retelling experience of entering into 35 back-to-back payday loan transactions over 17 months, paying $1,254 in fees to extend a $255 payday loan, and yet still owing the original $300) (on file with authors). In Virginia for 2002, the percentage of payday loans charged off as uncollectible was 3.4%. Virginia Bureau of Financial Institutions, "Supplement to the 2002 Annual Report of the Bureau of Financial Institutions" (2002) (available at: htto://www.state.va.Us/scc/division/bankins/forms/ar04-02,odt). 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.pdt). 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 C1 Table 1: Repeat Borrowing by Available State Data10 State Average Loans per Borrower California I I 11 Illinois 12 13 Indiana" 13 North Carolina14 8 Wisconsin" 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% ofborrowers).t6 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. 11 Editorial, "California: Stop legal loan sharks" Los Angeles Times at p.B10 (May 14, 2001). 12 Illinois Department of Financial Institutions, Consumer Credit Division. (n.d.). "Short term lending final report." at p. 26 (available at: http://www.state.il.us/dfi/ccd/pdfs/Shorterm.pdf). 13 Data from the Indiana Department of Financial Institutions(based on a examination period conducted from July 1, 1999 to September 30, 1999) "Summary of Payday Lender Examination," at p3. (available at: http://www. in. gov/dfi/Iegavpaydaylend/Payday.PDF). 14 See Appendix (Table Al). The eight loan average reported here for North Carolina significantly underestimates the actual average because it does not account for borrowers use of multiple shops. The data was presented in its raw form so that the North Carolina figure would be comparable to the other states, which have not employed the multi -shop methodology we use in this report. 15 Caskey, John P. "The Economics of Payday Lending," at p34. Center for Credit Union Research. (2002). 16 See Appendix. 5 00104 Figure 1: Payday Loan Fees Paid by Repeat Borrowers 40% 30% 20% 10% 0% 1 to 4 ® Percent of Fees ■ Percent of Borrowers 5to12 13to20 Loans per Borrower Sources: NC Banking Commissioner (2001), Elliehausen (2001) (see Appendix for calculations). 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. t s For borrowers taking out five, ten, or even twenty or more loans per year, payday lending functions as chronic debt, instead of helpful credit. t9 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 -teen 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. 1' 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. 25 Stephens Inc. (2003) supra n2 (estimating 2003 U.S. payday loan volume from $25 to 27 billion). 7 00106 II 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 Ioan 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 Ioan, despite serious concerns raised by national consumer advocates with regard to those loans.27 26 According to the Missouri Department of Economic Development, $15 is the most common fee per $100 payday loan, but still less than the average fee.(http://www.missourifinance.ora/odfs/survev.odf). A 2001 survey by the Consumer Federation of America and U.S. Public Interest Research Group found average fees of $18.28 per $100. See Fox, Jean Ann and Mierzwinski, E. "Rent -A -Bank Payday Lending: How Banks Help Payday Lenders Evade Consumer Protections" at p5 (November 2001). Also, the $15 fee per $100 is charged by some of the largest payday lenders, including Advance America and Check `N Go. See "Race to the Bottom," Forbes (July 21, 2003). See also, Stephens, Inc. (2003) supra n2. 27 These concerns include: marked disparities between the credit risk and effective interest rate charged on payday loans; lending without regard to the ability to repay; the coercive nature of holding a check as a payment mechanism; the short-term, non -installment nature of payday loans; additional costs related to NSF fees and bounced check charges; and public costs arising from collection efforts and associated bankruptcy filings. See Skillern, Peter. "Small Loans, Big Bucks: An Analysis of the Payday Lending Industry in North Carolina" (2002) (comparing payday loans to returns on equity from credit cards); see also, Fox, Jean Ann and Mierzwinski, E. supra n26 (detailing additional rate -risk comparisons with other types of financial products); Concerns were also raised in conversations with Elizabeth Renuart, National 8 00107 Conclusion By using a conservative methodology, we estimate that predatory payday lending costs Americans $3.4 billion annually. While an understatement of the actual cost of predatory payday lending experienced by borrowers, our examination of the data shows that borrowers caught in the debt cycle provide the lion's share of payday lenders' revenues. Consumer Law Center (December 1, 2003); Margot Saunders, National Consumer Law Center, (December 4, 2003); and Jean Ann Fox, Consumer Federation of America (December 15, 2003). 9 00108 Appendix Estimating Borrowers with Five or More Payday Loans Annually Table Al summarizes data from the North Carolina Commissioner of Banks' office.28 Table Al: North Carolina Payday Lending, 2000 No. of customers 431,214 Avg. loan amount $240.37 Fee per loan 14.9% Avg. loans per customer 8.1 Revenues $124,166,636 The methodology described in this Appendix projects the total number of loans made to borrowers, using (1) number of loans reportedly made to each borrower by individual lenders and (2) multiple payday shops usage data from a survey of borrowers. The projection was necessary because the North Carolina Commissioner of Banks' data only reflect borrowers' experiences with individual lenders. Consequently, these data do not accurately account for the number of loans taken by borrowers who use multiple lenders. For example, if one borrower received one loan from two different lenders (for a total of two loans), the data would incorrectly account for the two loans as one loan each by two borrowers (for a total of two loans). This distinction is important since, according to survey data (see Table A2), borrowers do in fact use more than one company to obtain their payday loans.29 Thirty percent of borrowers reported using two lenders, eleven percent used three lenders, and six percent used four or more lenders.30 While several findings in the underlying study raise concerns due to the very low survey response rate, the statistics on multiple lender use are supported by anecdotal research from other organizations 3 t 29 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: littoWwww.banking.state.nc.us/cc/eccon00.odt). 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). 3o 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% Source: 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 use32 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 J2 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% * 13.1,205 = 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 = F; * Q. EQUATION 2: Y; = 0.53X, + 0.30X0_,) + 0,11X(,_2) + 0.06X0_3) 73 Office of the North Carolina Commissioner of Banks supra n28 (year 2000 data). 12 00111 EQUATION 3: Zi = Yi / Q; EQUATION 4: A = (? Y(;,4) / ? Yi) * 15% fee * $25 billion = $3.4 billion Table A3: Projections of borrowers' experiences with multiple shop payday lending of of Lo Multiple Shop Projected Multiple Shop Cumulative an Loans Number of Share of s to Borrowers (Z) Borrowers per Single Borro Loans to Loans to 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 Borro Shop Lender Lenders Lenders Using Four Shop Cumulatt (Q) wers Loans (A) (B) (C) Lenders (D) Projected ve Share (F)' (X) (53%) (30%) (11%) (6%) Loans (Y) of_Loans 1 66,921 66,921 35,468 35,468 1.0% 35,468 9.3% 2 44,539 89,078 47,211 20,076 67,288 3.0Yo 33,644 18.2% 106,36 3 35,454 2 56,372 26,723 • 7,361 90,457 5.6% 30,152 26.1% 119,10 4 29,775 0 63,123 31,909 9,799 4,015 108,845 8.7% 27,211 33.2% 131,20 5 26,241 5 69,539 35,730 11,700 5,345 122,313 12.2% 24,463 39.7% 139,99 6 23,332 2 74,196 • 39,362 13.101 6,382 133.040 16.0% 22,173 45.5% 144,38 7 20,627 9 76,526 41.998 14.433 7.146 140,102 20.1 % - 20,015 50 157,35 8 19,669 2 83,397 43.317 15,399 7,872 149,985 24.4% 18,748 55., 160,09 9 17,788 2 84,849 47.206 15,883 8,400 156,337 28.9% 17,371 60.2% 168,15 10 16,815 0 89,120 48,028 17,309 8,663 163,119 33.6% 16,312 64.5% 176,77 11 16,070 0 93,688 50,445 17,610 9,441 171,184 38.5% 15,562 68.6% 206.38 109,38 12 17,199 8 6 53,031 18,497 9,606 190,519 44.0% 15,877 72.8% 143,49 13 11.038 4 76,052 61,916 19,445 10,089 167,502 48.8% 12,885 76.2% 132,65 14 9,475 0 70,305 43,048. 22,703 10,606 146,662 53.1% 10,476 78.9% 129,01 15 8,601 5 68,378 39,795 15,784 12,383 136,341 57.0% 9,089 81.3% 133,45 16 8,341 6 70,732 38,705 14,592 8,810 132,637 60.8% 8,290 83.5% 129,11 17 7,595 5 68,431 40,037 14,192 7,959 130,618 64.6% 7,683 85.5% 123.13 • 18 6,841 8 65,263 38,735 14,680 7,741 126,419 68.2% 7,023 87.4% 119.37 19 6,283 7 63,270 36,941 14,203 8,007 122,421 71.7% 6,443 89.0% 117,84 20 5,892 0 62,455 35,813 13,545 7,747 119,560 75.2% 5.978 90.6% 110,83 21 5,278 8 58,744 35,352 13,131 7,388 114,616 78.5% 5,458 92.1% 105,57 22 4,799 8 55,956 33,251 12,962 7,163 109,333 81.6% 4,970 93.4% 108,60 23 4,722 6 57,561 31,673 12,192 7,070 108,497 84.7% 4,717 94.6% 123,09 95.9% 24 5,129 6 65,241 32,582 11,614 6,650 116,087 88.1% 4,837 25 4,164 104,10 55,173 36,929 11,947 8,335 110,383 91.3% 4,415 97.0° 13 00112 0 156,49 26 6,019 4 82,942 31,230 13,541 27 2,607 70,389 37,306 48,948 11,451 29 0 0 00 21,117 17,214 0 30 0 0 0 0 7, Tot 431,21 3,472, 0 0 0 al 4 985 • Raw data from North Carolina Commissioner of Banks (2001). 14 6,516 7,386 6,246 9,390 4,223 134,229 95.1 % 103,091 98.1% 44,577 99.4% 17,132 99.9% 4,223 100.0% 3,472,965 5,163 3,818 1,592 591 141 380,565 98.4% 99.4% 99.8% 100.0% 100.0% 00113 tam-2- LRB-00-WB-7 State Regulation of Payday Loans. Applicable % Max. Fees Effective APR State Interest Cap Min./Max. Term Maximum Amount Percent/$ for 14 days t Alabama2 36% ' --- Alaska 36 -- _ Arizona 36 --- -` Arkansas — 6/31 days $400 ck 10% + $10 54fi% California _/30 days $300 ck 15% of ck 459 Colorado — NA $500 ck $25 650 Connecticut` 28.52 - _ Delaware — -` Florida -- NA3 NA l0%+S5 419 Georgia* 57.68 — — -- -- Hawaii _/31 days $300 ck 15% of ck 459 Idaho -- Illinois — — -- Indiana 36 -- -- — _ Iowa --- _/31 days $500 ck $15 first $1005 459 Kansas _/30 days 5860 -- 390 Kentucky 14/60 days $500 ck $ l5 per $100 459 Louisiana -- —/30 days 5350 loan 16.75% ck 520 Maine' 30 — — Maryland 33 — Massachusetts' 39.86 -- _ _ — Mlchigans ZS' — -_5 390 Minnesota — _/30 days $350 loan Mississippi _/30 days $400 ck 18% ck 572 Missouri 14 days/10 mo. $500 loan $15 per $100 390 Montana _/31 days $300 loan 25% 871 Nebraska — _/3l days $500 ck $15 per $100 459 Nevada — NA %7 NA New Harnpshires - 24 — — New Jersey' 30 New Mexico -- — -` — New York' 25 — -- — -- North Carolina -- _/31 days $300 ck 15% ck 459 North Dakota 30 — -- Ohio — _/6 mo. $500 loan 5%/$5-$50390 Oklahoma 30 days/NA $102 --5 364 Oregon — -- 4 Pennsylvania` 23.75 — Rhode Island 36 — South Carolina _/31 days $300 loan 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 $500 15% loan 390 West Virginia` 31 -- --.— __- Wisconsin --- -- Wyoming _/30 days NA 20% or $30 780 NA - Not applicable; ck - check. 'Check casher's law bans payday loans. 'Approximate annual e rate PR) without compounding. \2Payday loans permitted under gcourt injunction while litigation pending. 3Loan roll-overs or extensions violate Florida's usury and/or consumer finance act. 4$10 on each additional $100. SScale of fees and/or percentages related to size of loan. 6License not required if interest charges are no more than 5% per annum plus the check casher's fee. Check rasher's fees not regulated. ?Maximum loan not to exceed one-third of borrower's expected net monthly income. 6Effective 1/1/2000 licensed lenders can charge any rate agreed to by customers, thereby allowing payday loans. Sources: Compiled from various publications of the Consumer Federation of America, updated through September 1999. 00114 East Valley Parkway Plan forwarded to City Council I Escondido to consider restricting businesses; [NI Edition] Craig Gus tafson. stafson. The San Diego Union - Tribune. San Diego, Calif. Sep 16,2004. , .. pg. NL 1 Sam Abed, who owns the Midway Mobil gas station on East Valley Parkway, called the strip a "dumping ground" for the city's undesirable businesses. Of the 400 businesses on East Valley Parkway, 160 fit the profile of proposed prohibited uses — including 45 social -service groups, eight check -cashing outlets and four tattoo shops — according to a report by the East Valley Association, the group spearheading the initiative. 1 MAP; ESCONDIDO — The city of Escondido is proposing to ban certain kinds of businesses, including resale shops, dollar stores and check -cashing outlets, within this 255-acre area along East Valley Parkway.; Credit: DAVE HARDMAN / Union -Tribune Copyright SAN DIEGO UNION TRIBUNE PUBLISHING COMPANY Sep 16, 2004 ESCONDIDO — A plan aimed at revitalizing East Valley Parkway by limiting businesses that target low-income customers will go before the City Council next week. The plan creates a banned list of businesses — including resale shops, 99-cent and similar maximum -price stores and check -cashing outlets -- that have proliferated on a two-mile section of the road for years. The Escondido Planning Commission approved the East Valley Parkway Area Plan 4-1 late Tuesday night. Supporters say the plan will entice higher -end retailers to develop on East Valley and prepare the area for an influx of residents from future housing developments on the city's east end. Opponents describe the plan as a troubling and elitist strategy that will handicap landlords who already struggle with vacancies. Sam Abed, who owns the Midway Mobil gas station on East Valley Parkway, called the strip a "dumping ground" for the city's undesirable businesses. 'We cannot be a second-class citizen on East Valley Parkway and we're not going to take that anymore," said Abed, a City Council candidate in the fall election. Other restricted businesses include swap meets, tattoo parlors, thrift shops and stores that rent or sell vehicles and equipment. Social services and charitable organizations would be prohibited from distributing goods or services on the retail strip, but could have administrative offices there. If approved, the plan would not affect existing businesses. Jim Crone, who owns a commercial real estate company with property on East Valley Parkway, said the plan is filled with arrogance and will hurt the area in the long run. "I am not impressed with it at all," Crone said. "You're creating a problem on East Valley Parkway 00115 that will take years to fix." By restricting uses, city officials simply will increase the value of the shops that are grandfathered in, Crone said. Those shops still will thrive because they wouldn't exist without a large customer base, he said. Of the 400 businesses on East Valley Parkway, 160 fit the profile of proposed prohibited uses -- including 45 social -service groups, eight check -cashing outlets and four tattoo shops -- according to a report by the East Valley Association, the group spearheading the initiative. Without restrictions, Abed said, the result is an over- concentration of those shops in the aging retail area, where 75 percent of the city's businesses that target low-income customers are located. "We need to save East Valley Parkway tonight," Abed told the commission. He added that the Downtown Specific Plan restricts "hundreds and hundreds" of businesses without criticism. Commissioner Barry Newman called the plan "not only proper but sound land use." "This has to be done and it has to be done quickly," Newman said. Commissioner Jack Campbell, who voted against the plan, said he was worried that restricting landlords will result in empty storefronts, making it more difficult to lure larger retailers to the area. Campbell also questioned the limitations on social services. "You need to allow landlords to (lease) their buildings until the demographics catch up," Campbell said. "You can't make silk purses out of a sow's ears, my dad used to say." The -City Council will hold a hearing on the plan Wednesday. It wasn't always so bad on East Valley Parkway. In 1964, the Escondido Village Mall and East Valley Parkway became a retail destination for much of inland North County. In the 1980s, modem 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 0ollr 7.2 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 t 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, 2 n 004 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," saki 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. 0011 "It's actually pretty ridiculous," he said. "To use that to outlaw an entire class of legal industry is unfortunate. Millions of Americans use this service." He said much of the opposition to check -cashing stores stems from misinformation. "Ignorance in a lot of ways," Lyke said. "This tendency to think that everybody needs a bank account. Not everybody needs or wants a bank account." Lyke said bans on the business "are still quite rare." In 1999, the Oceanside City Council prohibited any new check- cashing stores, beauty shops or dry cleaners in the downtown area. National City's city attorney, George Eiser, said the council is on solid legal ground in limiting land uses, especially in redevelopment areas. "The purpose of redevelopment is to eliminate blight," Eiser said. Check -cashing stores are "more characteristic of parts of the community that are blighted," he said. Although council members approved the moratorium, they did allow an exemption for one new check -cashing business, USA Checks Cashed. Those business owners had already begun renovating a building on 16th Street and Highland Avenue. That exception prompted City Councilman Frank Parra to cast the lone vote against the moratorium. Parra said that if city leaders are serious about stopping more check -cashing businesses from coming into the city, they should have included the new business. "If we're going to get rid of them, why allow a new one to start?" Parra said. Councilman Ron Morrison also objected to the exemption. Yet, after losing a series of motions over the issue, Morrison decided to endorse the ban with the exception. Council members have asked the city's planning commission to study the check -cashing stores to determine whether they are a good fit for the community. Morrison and Inzunza also have been appointed to form a city task force to study Inzunza's desire to force all check -cashing stores out of the city within five years. Norberto Santana: (619) 498-6634; norberto.santana@uniontrib.com Credit: STAFF WRITER 00118 Escondido OKs business ban along East Valley Parkway; [NC Edition] Craig Gustafson. The San Diego Union - Tribune. San Diego, Calif.: Sep 29, 2004. pg. NC.7 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. "1 come over here just to go to the 99 Cents store. 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. WaI-Mart has applied to build a store adjacent to the Home Depot. Credit: STAFF WRITER 06120 From: Johnson, Ronald N LCDR; DEPUTY SJA CNRSW[mafto:ronald.n.johnsonignavy.mlij 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.njohnson1@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, Mkhael R CAPT CNRSW N01H; John Irons (E-mail); Tarbell, Nancy A. CONT (CNRSW); Bromberek, Stephen LCDR NRSW/FFCDS R50; Jacques, Bernard CNOCM Cc: Greer, Henry A CTR CNRSW ,N60; Macdonald, Scot CIV COMNAVREGSW N60CR; Groveman, Jon LT COMNAVREGSW Public Affairs; Yost, Jacqule C CAPT (CNRSW PAO); Clove, Ronald CAPT (SJA); Hail, 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 30 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 50P/° 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 RJ 5/5/2005 00122 CI) Total Respondents: Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 2150 Public 1616 75.16% CAC — ,..,,a., 24.84% el -e3 e4-e6 e7-e9 01-02 03-04 05-06 Totals is good service - yes .2.73 29 s 4 338 358 L744::',71.7.7,17,7,L7M-2. • 115 1.53% 16.84% 2.05% 0.23% • 0.33% 0.09% 21.07% 20.93% is good service - no 034 '-.4 IL .'",i: ,tt , '.e 59.16% •-. !. „: .... APR 1.31,0 ,_„.„ ...,• r,1 - 4 80.79% .,, change decision 1013 16 62.88% savings 795 ..., , ..,. ., 4 - ''''' • 50.28% aware assistance • 1370 V , „.... 4, 86.23% al 0 CFS 1168 Wri 74.09% Q11 NMCRS Q12 paid late fees method of paying Q13 bills Q14 Q15 588 35.26°/0 ..., 'I j . gc e found out 1237 — 75.53% - ....1000.i. Credit Card APR 1455 , 0. h.,iter ::70 . _ '1.091[1Higgii 91.26% 1 133 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 pol 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 Ariolation against a payday lender that the business should be located in a commercial area that caters to bail bondsmen and pawn shops. Milwaukee's Board of Zoning Appeals denied a special use permit application from The Payday Loan Store of Wisconsin to open two locations. The Board found that secondary effects of payday lending on the community at large negatively impacted the public welfare. A good reported case denied a conditional use permit to a title lender (really similar to payday lenders). See Missouri Title Loans, Inc. v. City of St. Louis Board of Admustment, 62 S.W.3d 408 (Ct. Apps. 2001). Superior, WI Plan Commission approved amending its zoning ordinance to include title and payday loans as special uses in 2004. A person who wants to open or relocate a payday or title loan store can't do so within 2,500• feet of a similar business and have to located in a highway commercial zone. Councilmembers objected to tacky signs. For over thirty years, California courts have held municipalities can deny land use permits to pawnshops upon "considering the effect of the proposed pawnshop on surrounding property and its inhabitants. See Iscoff v. San Francisco, 222 Ca1.App.2d 395, 408 (Cal.App.l.Dist., 1963). A payday lender zoning rule was proposed for Columbia, SC in 2004. Attached is a chart that Jim Walrath from legal services in Milwaukee put together. 1 00125 (3 9 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 FILESOLKS\PDL LAW LEG CHART WALRATH.WPD 0012E 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 Lending113004.pdf "Unsafe and Unsound: Payday Lenders Hide Behind FDIC Bank Charters to Peddle Usury," report by Consumer Federation of America, March 2004 www.consumerfed.org/Ddlrentabankreport.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 wwvv.consumerfed.org/paydayreport.pclf "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.constunerfed.org/safeharbor.ndf "The Growth of Legal Loan Sharking: A Report on the Payday Loan Industry," Consumer Federation of America, November 1998 (For a full list of CFA press releases, studies, testimony and letters on payday lending, go to www.consumerfed.org, click on Financial Issues and select "Payday Loans.") "Predatory Lending and the Military: The Law and Geography of `Payday' Loans in Military Towns," Steven Graves and Christopher Peterson, University of Florida Law School, March 29, 2005 www.law.ufl.edu/faculty/peterson/publications.shtml 00127 "The Consumer Lending Revolution: Economic Consequences. The Regulatory and Legislative Framework" Kathleen Keest, Center for Responsible Lending, December 8, 2004 www.responsiblelending.org/pdfs/Legislative Framework 1204.pdf "Be Wary: Dependence on Debt Trap Presents Challenges for Effective State Payday Lending Regulation" Yolanda McGill, Center for Responsible Lending, July 2, 2004 www.responsiblelending.org/pdfs/pb009-Be Wary Pavdav-0704.pdf "Quantifying the Economic Cost of Predatory Payday Lending" Keith Ernst, John Farris, and Uriah King, Center for Responsible Lending, Dec. 18, 2003 http://predatorylending.org/pdfs/CRLpaydaylendingstudy121803.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.) http://www.consumerlaw.org/initiatives/military/content/report military .pdf NCLC/CFA Model State Payday Loan Law www.ncic.org/initiatives/pavdav loans/pavdavac.shtml NCLC Payday Loans: A Form of Loansharking: The Problem, Legislative Strategies, A Model Act www.ncic.orc/initiatives/pavdav Loans/pav 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 137 State and Local Reports and Studies Arizona "Payday Lending in Pima County Arizona" Southwest Center for Economic Integrity, December 2003 www.economicintegrity.org/SCEI Report%20 On %20PayDay Lending%2ORELEAS ED1.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/ddlannwt2004.pdf Florida "Florida Trends in Deferred Presentment Report" State of Florida Department of Banking and Finance, December, 2004 www.veritecs.com/FL Trends Dec 2004.pdf Illinois "Unregulated Payday Lending Pulls Vulnerable Consumers Into Spiraling Debt," Woodstock Institute Reinvestment Alert, March 2000, Number 14 http://woodstockinst.org/document/alert.pdf "Affordable Alternatives to Payday Loans" Woodstock Institute Reinvestment Alert, March 2001, Number 16 http://woodstockinst.org/document/alert 1 6.pdf "Payday Lenders Gouging African -American Communities" Woodstock Institute Press Release, March 11, 2003 http://woodstockinst.org/document/paydaypress03.ndf "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 13e "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%20rebort%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 ww-w.missouri-finance.org/pdfs/survey.pdf New Mexico "Payday, Mayday! Payday and Title Lender Compliance to Signage and Brochure Regulations" Series on Predatory Lending Report One Ray Prushnok, NM PIRG Education Fund 2002 http://nmpirg/reports/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 vvww.responsiblelending.org/reports/NCDispimpact.cfrn 4 0C►130 I3 "Season in Review" Community Reinvestment Association of North Carolina, 2004 www.cra-nc.org/SeasonReviewnews.pdf "Melee Breaks Out at FDIC" Community Reinvestment Association of North Carolina, 2004 wwvv.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/pavcheck.pdf "Small Loans, BIG BUCK$: An Analysis of the Payday Lending Industry in North Carolina" Peter Skillern, Community Reinvestment Association of North Carolina, 2002 www.cra-nc.org/small%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-flagler.unc.edu/assets/documents/CC Payday-lending.pdf "Welfare, Work, and Banking: The North Carolina Financial Services Survey" Michael A. Stedman & Robert Faris, Oct. 2001 www.kenan-flagler.unc.edu/assets/documents/CC welfare.pdf North Carolina Report to the General Assembly on Payday Lending Office of the Commissioner of Banks, North Carolina, February 2001 www.banking.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.pdf Pennsylvania "License to Steal? How Philadelphia's Largest Check-Casher Chain Is Using Its State -Issued License to Siphon Millions of Dollars from Low -Income Households" Pennsylvania ACORN and Community Legal Services, Philadelphia, 2000 5 00131 Tennessee "Report to the 100 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 www.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.yirginia.goy/division/banking/forms/ar04-04.pdf Washington Payday Lending Report: Statistics & Trends for 2003 Washington State Department of Financial Institutions, January 2005 http://www.dfi.wa.gov/news/DFI PaydayReport.pdf Wisconsin Review of Payday Lending in Wisconsin 2001 Wisconsin Department of Financial Institutions, June 2001. www.wdfi.ore/ resources/indexed/site/newsroom/press/payday loan may 2001.pdf Australia "Payday Lending in Victoria — A Research Report" Dean Wilson, Consumer Law Centre Victoria, Melbourne, AU, July 2002 w-ww.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/fringelendinu.htm "Pragmatic Solutions to Payday Lending: Regulating Fringe Lending and `Alternative' Banking" Public Interest Advocacy Centre, Ontario, December 2003 www.piac.ca/fringelendingrpt2.pdf "The Rise of Fringe Financial Services in Winnipeg's North End: Client Experiences, Firm Legitimacy and Community Based Alternatives" Jerry Buckland, University of Winnipeg, August 2003 www. uinnipeg. ca/web/faculty/ius/iusweb/pdf/fringe.banking.Chesva. 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/intemetlincmc- 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/conline/pubs/alerts/pdayalrt.pdf 7 0G133 "Consumer Guide to Payday Lending" Virginia Bureau of Financial Institutions www.state.va.us/sec/division/banking/news/payday brochure.pdf CUNA Payday Loan Alternatives Handbook CUNA www.cuna.org/download/alternatives handbook 3rd printing.ndf "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 dIEETING DATE City of National City, California COUNCIL AGENDA STATEMENT November 15, 2005 AGENDA ITEM NO. 22 OTEM TITLE Public Hearing — To consider the proposed Mitigated Negative Declaration for the Street Widening Improvements on Plaza Boulevard from Highland Avenue to Euclid Avenue PREPARED BY Din Daneshfar EXPLANATION. pEPARTMENT Engineering EXT.4387 See attached explanation. Environmental Review X N/A MIS Approval Financial Statement N/A Approved By: Finance Director Account No. STAFF RECOMMENDATION Hold the public hearing. 1 BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) 1. Notice of Availability Resolution No. A-200 (Rev. 7/03) RE: Public Hearing — To consider the proposed Mitigated Negative Declaration for the Street Widening Improvements on Plaza Boulevard from Highland Avenue to Euclid Avenue On November 1, 2005, the City Council set November 15, 2005 to consider the proposed Mitigated Negative Declaration (MND) for the Street Widening Improvements on Plaza Boulevard from Highland Avenue to Euclid Avenue. The attached Notice of Availability (NOA) was sent to the local newspaper for publication and to the property owners and occupants in the vicinity of the project site within a 300 feet radius. The notice provides a thirty -days period, as required by Federal Highway Administration (FHWA), from November 2, 2005 to December 1, 2005 for the review of the MND. At the public hearing, the City's Consultant will present the project preliminary design and its impacts to the surrounding properties/facilities and open for public discussion. The general topics of the presentation will be as follows: • Project description and purpose of the proposed improvements • Existing street geometry • Design alternatives • Selected design alternative with the proposed street geometry and its impact to each adjacent property • Impacts to street parking • Impacts to driveways within the public right of way • Federal and State requirements • Various required studies and environmental requirements • Street, traffic, and Landscape enhancements to Plaza Boulevard, including the segment under Interstate 805 (I-805) • Right of way process • Financial statement • Construction schedule Staffs recommendation is to hold the public hearing. It should be noted that if the project design changes as the results of public review the revisions would be resubmitted to Department of Transportation (Caltrans) and FHWA for additional review. Following the thirty day review period this item will be brought back before the City Council at its December 20, 2005 meeting with results of the public review and request to adopt the MND. After the adoption of the MND, a Finding of No Significant Impact (FONSI) under National Environmental Policy Act (NEPA) will be approved by FHWA. NOTICE OF AVAILABILITY OF A DRAFT INITIAL STUDY/ENVIRONMENTAL ASSESSMENT PLAZA BOULEVARD WIDENING PROJECT 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 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 the classification in the Circulation Element of the National City General Plan. Widening portions of Plaza Boulevard would add capacity and reduce existing congestion, decrease traffic delays, and maintain continuity in levels of service (LOS) established by the City of National City. The Mitigated Negative Declaration and Initial Study/Environmental Assessment together constitute 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. The Lead Agency for compliance with NEPA is the Federal Highway Administration (FHWA). The Lead Agency for 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. Public Review The environmental document will be circulated for public review and the review of other governmental agencies between November 2, 2005, and December 1, 2005. Written comments concerning the document will be accepted during this period. In addition, the City Council of the City of National City will hold a public hearing after the hour of 6:00 p.m., Tuesday, November 15, 2005 in the City Council Chambers, Civic Center, 1243 National City Boulevard, National City, California, to consider the proposed Mitigated Negative Declaration. Copies of the environmental document are available for review at the following locations: National City Clerk Office 1243 National City Boulevard Plaza Boulevard MD & IS/EA NOUNOA 1 National City, CA 91950 National City Public Library 1401 National City Boulevard National city, CA 91950 -4301 California Department of Transportation District 11 — Viewridge Office 5251 Viewridge Court San Diego, CA 92123 Submit comments via regular mail to: 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 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. Plaza Boulevard MND & IS/EA NOI/NOA 2 City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE November 15 2005 AGENDA ITEM NO. 23 rITEM TITLE Public Hearing — Amendment to the boundary of the National City Downtown Specific Plan to include properties at the northeast corner of 9th Street and D Avenue. Applicant: Gulf Unlimited Corporation Case File No.: SP-2005-2 PREPARED BY DEPARTMENT Raymond Pe, AICP Community Development Commission Redevelopment Projects Manager EXPLANATION The proposed amendment would add approximately 0.41 gross acres to the Downtown Specific Plan, Development Zone 10. The Planning Commission held a public hearing on this item at their October 17, 2005 meeting. The attached background report describes the amendment in detail. Environmental Review Addendum to Certified Program EIR Financial Statement Not applicable Account No STAFF RECOMMENDATION Staff concurs with the recommendation of the Planning Commission BOARD / COMMISSION RECOMMENDATION On October 17, 2005, the Planning Commission voted to recommend approval of Specific Plan Amendment (SP-2005-2). Ayes: Alvarado, Baca, Carrillo, Flores, Graham, Martinelli, Pruitt Noes: None Absent: Reynolds ATTACHMENTS 1. Background Report 2. Map — Adopted Specific Plan / Zone Boundaries I. 3. Resolution Resolution No. 4. Program EIR Addendum 5. Program EIR — Executive Summary (Pages 4-22) 6. Application BACKGROUND REPORT Applicant Request The applicant is requesting that the National City Downtown Specific Plan be amended to include the property located at 419 9th Street. The applicant has submitted a development proposal that includes the property and the adjacent parcels to the north, which are currently located within the boundaries of the Specific Plan. The development proposal would be processed subsequent to the specific plan amendment. On August 15, 2005, the Planning Commission initiated the proceedings to consider a specific plan amendment that would include the applicant's property (419 9th Street) and the adjacent property to the west (835 D Avenue). The two properties are the remaining parcels on the western half of the block that were not included in a previous specific plan amendment (SP-2005-1, adopted June 7, 2005) that added most of the block to the Downtown Specific Plan. On October 17, 2005, the Planning Commission recommended approval of the current request (SP-2005-2) to include the properties in Development Zone 10 of the Downtown Specific Plan. Subject Property The area proposed to be included within the boundaries of the Downtown Specific Plan is approximately 0.41 gross acres at the northeast comer of 9th Street and D Avenue, and includes two parcels. One parcel (419 9t' Street) is a 3,437 square foot lot with 55 feet of frontage on 9 Street and 62.5 feet of frontage on an alley to the east, and is developed with a single family residence. The other parcel (835 D Avenue) is a 3,475 square foot lot with 62 feet of frontage on D Avenue and 62.5 feet of frontage on 9th Street, and is developed with an office, retail store, and residence. The subject properties are located in the General Commercial (CG) Zone. Adjacent land uses include vacant lots to the north, apartments to the east across the alley, apartments to the west across D Avenue, and apartments to the south across 9th Street. The vacant lots to the north and the properties to the west of D Street are in the Downtown Specific Plan. The properties to the north of 8th Street and to the east of the alley are in the CG Zone. The properties to the south of 9th Street are in the RS-3PD Zone. Analysis The adoption of the National City Downtown Specific Plan in February 2005 amended the adopted General Plan, serving as a refinement of the goals of the General Plan, and is the governing document for development in the downtown area. The focus of the Specific Plan is the revitalization of downtown National City. The proposed amendment would further the goals of the General Plan and the Downtown Specific Plan. Attachment 1 1 The amendment would allow for the comprehensive planning and development of the half block and ensure an appropriate transition in land use intensity from 8th Street to 9th Street. The amendment would apply Development Zone 10 of the Downtown Specific Plan to the subject properties. This district along 9th Street allows low-rise townhouse development that is a transition and buffer between the higher intensity Development Zone 9 to the north (along 8th Street) and the less intensive RS-3 single family residence zone to the south of 9th Street. The amendment would also further the Specific Plan's objective for Development Zone 10 to create an "urban residential street [that will] form an important east -west connection between [Central Elementary School and Education Village].. The amendment would apply the Specific Plan's development standards and design guidelines to the extension of this residential corridor. Under the current CG zone designation, the subject property could be developed with an intensive commercial development with a floor area ratio of 6:1. If the subject property is included in the Downtown Specific Plan, residential development with an FAR of 3:1 would be allowed subject to Consistency Review before the CDC Board to ensure compliance with the standards and guidelines in the Specific Plan. The development standards of Specific Plan Development Zone 10 are compared to those of the current CG zone in the following table. Development Standard CG Zone (Adopted) Development Zone 10 (Proposed) Floor Area Ratio 6 FAR 3 FAR Allowed Floor Area 41,472 SF 20,736 SF Building Height No Limit 36-Feet Residential Density None, CUP required 20-30 du/ac Lot Coverage None None The less intensive residential land use and development standards of the proposed Development Zone 10 would be appropriate for this segment of 9th Street and in the context of the adjacent RS-3 single family residence zone to the south. The proposed amendment would be a logical extension of Development Zone 10, which applies to the properties along 9th Street from A Avenue to D Avenue. Environmental Review A Program Environmental Impact Report (PEIR) was certified for the Downtown Specific Plan. The PEIR examined potential impacts (i.e. land use, traffic, noise, air quality, etc.) that could result from the implementation of the Specific Plan, and a Mitigation Monitoring and Reporting Program (MMRP) was adopted. The proposed Addendum to the PEIR updates the Project Area described in the PEIR to include the subject properties. As this boundary adjustment adds only approximately 0.41 2 gross acres to a 135 acre project area, an increase of less than one percent (0.31 percent), no other updates or changes to the PEIR are needed. Furthermore, the proposed amendment would result in less intensive land uses and development standards for the subject property than allowed under the current zone. Future development of the subject property would be subject to the mitigation measures contained in the MIvIRP. 3 ATTACHMENT 2 ADOPTED SPECIFIC PLAN / ZONE BOUNDARIES Feet Case File Information: Reference Files: Addendum. Completed By: Date: Project Description: Addendum Description: Program EIR Addendum National City Downtown Specific Plan Program EIR SP-2005-2 Raymond Pe, Redevelopment Projects Manager October 11, 2005 A specific plan with land use regulations, development standards, and design guidelines for a 135-acre project area identified as the National City Downtown Specific Plan. A minor boundary adjustment of the National City Downtown Specific Plan project area. Background The City Council approved the National City Downtown Specific Plan and certified the Program EIR for the specific plan on February 1, 2005. Interest in the redevelopment and revitalization of downtown National City led to the need for a refinement of the goals of the General Plan and the development of precise land use regulations, development standards, and design guidelines to guide development in the downtown core. The Program EIR identified several significant impacts and contained a number of mitigation measures that have been incorporated into the project through the Mitigation Monitoring and Reporting Program. The purpose of this addendum is to address a minor alteration to the project boundary. Project Description The Specific Plan establishes land use regulations, development standards, and design guidelines for the 135-acre Project Area. The Specific Plan does not include any proposed projects or identify any specific development sites. The purpose of the Specific Plan is to provide developers, investors, decision -makers, and citizens with an understanding of the vision for downtown and guidance in implementing quality redevelopment and revitalization of the downtown area. The Specific Plan is intended to provide a roadmap to achieve this vision for the project area over the next 20 years. Project Change The proposed change to the project would be a minor adjustment to the eastern boundary of the project area as shown on Exhibit 1. Specifically, the boundary would be adjusted to include the remaining portion of the west half of the block bounded by 8th Street to the north, 9th Street to the south, D Avenue to the west, and E Avenue to the east. The area added to the project area would total approximately 18,000 gross square feet or 0.41 gross acres. Attachment 4 Environmental Analysis No issues discussed in the Program EIR are updated by this Addendum; the only update is to the project area boundary. As the project area is increasing by less than one percent (0.31 percent) and less than half an acre ((0.41 gross acres) there is no potential for an increase in the severity of any impacts identified in the Program EIR. Additionally, as the property to be added to the project area is within an urbanized area, and the Specific Plan was considered and approved less than nine months ago, there is no change to the circumstances under which the Specific Plan was approved. Furthermore, the proposed amendment would result in less intensive land uses and development standards for the subject property than allowed under the current CG zone. Future development of the subject property would be subject to the mitigation measures contained in the MMRP. Justification for Preparation of an Addendum Pursuant to CEQA §15162, no Subsequent or Supplemental EIR or Negative Declaration is needed for this project since there are no substantial changes to the project or circumstances that will result in new significant impacts or a substantial increase in the severity of previously identified impacts. Furthermore, there is no new information showing that there are mitigation measures or alternatives previously found to be infeasible that are in fact feasible but not proposed by the applicant. Lastly, there is no new information showing that substantially different mitigation measures than those previously identified would reduce significant impacts and that the applicant does not propose these mitigation measures for adoption. The Environmental Analysis and background information above demonstrate that there is no potential for new significant impacts or for a substantial increase in the severity of impacts identified in the certified Program EIR. Since the character of the project and the circumstances of the project area are unchanged the land use/planning, geology/soils, traffic/circulation, aesthetics, noise, air quality, hazards/hazardous materials, population/housing, cultural resources, water services, police protection, fire protection, school facilities, sewage services, and recreation discussions in the Program EIR are still relevant and need not be re-examined. SPECIFIC PLAN BOUNDARY EXHIBIT 1 PROPOSED ADOPTED 800 Feet 1,000 0 200 400 600 Program EIR — Executive Summary (Pages 4-22) ATTACHMENT 5 2.0 EXECUTIVE SUMMARY 2.1 PROJECT ENVIRONMENTAL SUMMARY The purpose of the Executive Summary is to provide the reader with a summary of the potential environmental project impacts and suggested mitigation measures, if any, that may be associated with adoption and implementation of the proposed National City Downtown Specific Plan. For a complete discussion, it is suggested the reader refer to the text of the PEIR, which addresses potential project impacts, issues and proposed mitigation measures in more detail. The summary of the potential project impacts and recommended mitigation measures as discussed in the PEIR is presented below. Project Summary 2.1.1 LAND USE/ PLANNING Project Impacts The Downtown Specific Plan conforms to all of the policies of the General Plan in terms of promoting sensible infill development and transitioning between residential and commercial uses. The Specific Plan does not conflict with any land use policies of the General Plan. The Specific Plan proposes to change the existing land uses and increase the number of residential units allowed in the Project Area and decrease the amount of commercial and light industrial land use. The adoption of the Specific Plan will require an amendment to the City's General Plan and zoning code. The Project Area is located in a redevelopment area and CDC has the authority to use eminent domain to acquire non-residential property in specific areas. The use of redevelopment funds to assist in the acquisition of properties, assemble parcels, construct infrastructure improvements, etc. will have a positive land use impact towards implementing the Specific Plan. The Specific Plan will encourage new development and remove blight by demolishing buildings, constructing new buildings, upgrading existing buildings to meet current building and fire codes, etc., which will have positive land use effects for the community as a whole. The Specific Plan will have positive impacts by encouraging the private community, City, and CDC to upgrade and improve the physical appearance of the Project Area. The adoption of the Specific Plan will not have any significant direct land use impacts based on the land use threshold criteria. The City will evaluate all future private and public projects for potential land use impacts at the time development plans are submitted for approval for compliance with the Specific Plan. Mitigation Measures There will be no significant land use impacts with the adoption and implementation of the Downtown Specific Plan. Therefore, no mitigation measures are required by CEQA. National City Downtown Specific Plan Program EIR September 2004 Page 4 Significance After Mitigation No significant land use impacts are anticipated with adoption and implementation of the Specific Plan. 2.1.2 GEOLOGY/SOILS Project Impacts As with any projects in National City, future development will be exposed to geologic hazards and seismic activity due to active faults that affect National City, including the Project Area. Seismic hardware and construction in compliance with the building code can mitigate impacts due to seismic activity. The incorporation of erosion control measures into future projects will minimize soil erosion impacts. Earthquake induced ground failure such as liquefaction and differential settlement will not impact development in the Project Area. National City follows state regulations and has programs to protect property and residents from geologic hazards. Implementation of these programs relative to the geologic and seismic constraints of development will reduce impacts to a level of insignificance. Since specific development plans for future private as well as public improvement projects are not available at this time it is speculative to identify with any accuracy the direct and indirect soils and geologic impacts that may occur with their construction. The City will determine if additional environmental analysis will be required for compliance with CEQA at the time plans for projects are submitted for approval. Additional environmental analysis to evaluate direct and indirect soil and geologic impacts will be required, if necessary. Mitigation measures will be provided accordingly to reduce significant impacts pursuant to CEQA and local/state building regulations. Mitigation Measures The following mitigation measure is recommended to reduce potential geologic hazard and soil erosion impacts associated with the construction of future public and private projects. 1. Prior to the issuance of a final grading permit a detailed geotechnical investigation shall be approved by the City. The investigation shall include fieldwork (e.g., subsurface exploration, sampling) and laboratory analysis as directed by the City to determine the exact location and extend of potential geologic/seismic hazards. All applicable remedial grading measures and seismic design parameters recommended by the geotechnical engineer shall be incorporated into the project and shown on the final grading plans and/or incorporated into contractor specifications prior to award of construction contracts, to the satisfaction of the City. Significance After Mitigation No significant geology/soils impacts are anticipated with the adoption and implementation of the Specific Plan and incorporation of the recommended mitigation measure. National City Downtown Specific Plan Program EIR September 2004 Page 5 2.1.3 TRAFFIC AND CIRCULATION Project Impacts Based on the threshold criteria the adoption and implementation of the Specific Plan will impact key intersections in the Project Area and require mitigation: Main Street at Yama/I-5 Southbound Off ramp (PM: LOS F); Main Street at Division Street (PM: LOS F); National City Blvd at Division Street (AM: LOS F); I-5 South Ramps at 8th Street (AM, PM: LOS F); National City Boulevard at 8th Street (AM, PM: LOS F); National City Boulevard at Plaza Boulevard (AM: LOS E); and I-5 Northbound Onramp at Civic Center Drive (AM, PM: LOS F). Specific Plan traffic will not impact Interstate 5. The proposed parking space requirements are 1.2 spaces per residential unit and 2.5 spaces per 1,000 square feet of floor space for non-residential use. The proposed parking requirements are anticipated to be adequate to serve development allowed by the Specific Plan. Mitigation Measures The following mitigation measures are recommended to reduce impacts to intersections to level of service D. These improvements shall be installed prior to build -out of the Specific Plan or as warranted by the City, whichever is first. 1. Re -stripe the intersection of Main Street at Yama/I-5 southbound off ramp to include two left -turn lanes and a shared through right -turn land for the southbound approach. The improvements shall be coordinated with the City of San Diego and Caltrans. 2. A traffic signal shall be installed at the intersection of Main Street and Division Street. 3. A traffic signal shall be installed at the intersection of National City Boulevard and Division Street. 4. A traffic signal shall be installed at the intersection of I-5 southbound off ramps and 8th Street. 5. Re -stripe the intersection of I-5 northbound on -ramp at Civic Center Drive to include a left -turn pocket for the northbound approach. 6. Provide bicycle racks when feasible to encourage the use of bicycles. 7. Promote ride -sharing programs for the businesses in the Project Area. 8. National City Transit District shall be notified in writing at least one week prior to the start of construction of any public or private project that will impact an existing bus stop/bus shelter to allow National City Transit District adequate time to provide a temporary bus stop/bus shelter. Significance After Mitigation There will be no significant traffic and circulation impacts with adoption and implementation of the Specific Plan and incorporation of the recommended mitigation measures. National City Downtown Specific Plan Program EIR September 2004 Page 6 2.1.4 AESTHETICS Project Impacts The Specific Plan design and landscaping guidelines will significantly improve the aesthetics of the Downtown Project Area. The incorporation of the recommended building designs, landscaping, pedestrian amenities to encourage foot -traffic, plaza fountain, etc. will create an improved downtown aesthetic feel. The Downtown Specific Plan should encourage the redevelopment of the downtown area from a mixture of old architecture and design to consistent design throughout the Project Area. The Downtown Specific Plan will have a positive aesthetic impact that may, and is anticipated, to spillover to and have a positive impact to other areas of National City. Construction of hardscape and landscape improvements will significantly improve the aesthetics of the Project Area. All projects, including remodeling of existing buildings as well as new construction, will be reviewed by the City for consistency with the design guidelines of the Specific Plan during the project approval process. Compliance of projects with all applicable design requirements will ensure that development in the Project Area meets the design objectives of the Specific Plan. Mitigation Measures 1. There will be no significant aesthetic impacts with the adoption and implementation of the Downtown Specific Plan. Therefore, no mitigation measures are required by CEQA. Significance After Mitigation No significant aesthetic impacts are anticipated with adoption and implementation of the Specific Plan. 2.1.5 NOISE Project Impacts The development of both public and private projects could increase noise levels in the project vicinity that exceed City adopted noise levels. The development of future projects could increase both short-term (construction) and long-term (operational) noise levels beyond City standards. The increased noise levels could impact noise sensitive land uses (residential). Potential noise impacts could include both interior and exterior noise levels impacts as well as increasing the ambient, or background noise levels beyond City acceptable limits. Because specific development plans of future projects are not available at this time it is speculative to determine project specific noise impacts, including short or Long-term impacts. The City will review all future projects for potential noise impacts at the time plans are submitted for approval. When applicable, noise studies will be required to determine whether or not a project will have noise impacts as determined by the City's Noise Control Ordinance. Mitigation measures to reduce noise impacts will be imposed on projects when applicable to meet the noise ordinance National City Downtown Specific Plan Program EIR September 2004 Page 7 and reduce noise impacts to a level of insignificance to comply with CEQA. Based on the threshold criteria the Specific Plan could have significant noise impacts due to future development in the Project Area. Mitigation Measures Upon evaluation of specific projects by the City, if potential significant noise impacts are anticipated the following measure shall be implemented where appropriate: Temporary Impacts 1. To ensure that construction activities comply with the City's Noise Ordinance a Construction Noise Abatement Plan shall be prepared for each construction project and submitted to the City prior to the issuance of demolition, grading or building permits, whichever is issued first. The Plan shall describe the construction activities, equipment required for those activities, and noise level generation characteristics of the equipment to be used. Noise levels at the closest residential use shall be predicted. If projected noise levels will exceed the Noise Ordinance limits, measures to reduce those levels to comply with the Noise Ordinance shall be described and implemented. Long Term Off -Site Impacts The analysis shows that the project will result in a significant traffic noise impact to residences along Civic Center between Wilson Avenue and Roosevelt Avenue. Further, the project will substantially contribute to significant cumulative traffic noise impacts along D Avenue between 8th Street and Plaza Boulevard, and Plaza Boulevard between Hoover Avenue and D Avenue. Typically sound walls are prescribed to mitigate these impacts. However, in this case, most of the impacted residences front the roadway causing the traffic noise. Building barriers in front of homes is not practical or consistent with the aesthetics and design of the specific plan. Openings would be required to allow access to the streets, which would short-circuit the effectiveness of the noise barriers. The tires interacting with the roadway generate much of the noise generated by traffic. A freshly paved roadway will generally generate substantially lower noise levels than an older worn roadway. However, the reduction in noise levels erodes rather quickly as the new surface is worn. Typically the reduction is completely eliminated within a year. In recent years "low noise" roadway surfaces have been used with success more and more. These surfaces result in lower traffic noise levels than typical roadway surfaces. The question that has lingered is how long the noise reduction qualities exist. Several long-term tests are currently ongoing and indicate that the noise reduction does in fact last over time. The two surfaces most commonly used for their noise reducing qualities are open -graded friction courses (OGFC) and rubberized asphalt. Studies have shown that these surfaces can reduce traffic noise levels by 5 to 10 dB at highway speeds. At lower speeds, the reductions are estimated to be in the 3 to 5 dB range. Use of one of these surfaces on the roadways causing the National City Downtown Specific Plan Program EIR September 2004 Page 8 impacts would almost completely eliminate the projected noise level increases due to the project as well as the cumulative increases. To mitigate the significant noise impact caused by increased traffic generated by the project, the following roadway segments should be repaved using OGFC, rubberized asphalt or other roadway surface showing documented long term noise reductions of at least 3 dB; Civic Center between Wilson Avenue and Roosevelt Avenue, D Avenue between 8th Street and Plaza Boulevard, and Plaza Boulevard between Hoover Avenue and D Avenue. In order to reduce vehicular road noise the following mitigation measure is recommended: 2. These roads (Civic Center between Wilson Avenue and Roosevelt Avenue, D Avenue between 8th Street and Plaza Boulevard, and Plaza Boulevard between Hoover Avenue and D Avenue) shall be repaved with the noise reducing surfaces prior to issuance of building permits for the specific project that will result in, cumulatively, more than half of the projected increase in trips resulting from the implementation of the specific plan. Long Term Impacts from On -Site Activities The following long-term noise mitigation measure is recommended: 3. As specific commercial projects are submitted for approval they shall be evaluated for noise generating characteristics, the closeness to any residential uses, and the potential for violations of the City's Noise Ordinance. If City staff determines that a proposed commercial project has the potential to violate the City's Noise Ordinance, a detailed noise assessment shall be required. This assessment shall be prepared by a qualified acoustical engineer and describe the noise generating activities and their characteristics as a noise source. Noise levels shall be predicted at the potentially impacted residences and compared with the Noise Ordinance standards. If an exceedance is found, project specific mitigation measures shall be described to reduce the noise levels to below the Noise Ordinance Standards. The noise report shall be submitted to and approved by the City and all mitigation measure incorporated into the building plans prior to issuance of building permits for the project. Long Term On -Site Impacts The noise analysis presents evidence that the residential uses along National City Boulevard, 8th Street, and Plaza Boulevard would be exposed to noise levels in excess of 65 CNEL. Further, indoor noise levels along these roadways and Roosevelt Avenue could be exposed to interior noise levels in excess of 45 CNEL unless properly designed. The noise mitigation measures recommended below will allow development to meet the indoor and outdoor noise level limits of the city. Outdoor Noise Mitigation 3. Mitigation through the design and construction of a noise barrier (wall, berm, or combination wall/berm) is the most efficient method of reducing outdoor noise exposure levels. The effect of a noise barrier is critically dependent on the geometry National City Downtown Specific Plan Program EIR September 2004 Page 9 between the noise source and the receiver. A noise barrier effect occurs when the barrier breaks the "line of sight" between the source and receiver. The greater the distance the sound must travel around the barrier to reach the receiver, the greater the noise reduction of the barrier. To be effective noise barriers are required to have a surface density of at least 3.5 pounds per square foot with no openings or cracks. It may be a solid wall, an earthen berm, or a combination of the two. The wall may be constructed of wood studs with stucco exterior, 1/4-inch plate glass, 5/8 inch Plexiglas, any masonry material, or a combination of these materials. Wood and other materials may be acceptable if properly designed as a noise barrier. For patios and balconies the barriers must run along the entire edge of the patio or balcony from building face to building face. Based on the projected traffic noise levels, no residential area would require a barrier with a height greater than 9 feet to reduce noise levels to below 65 CNEL. Typically 5 to 6 foot high barriers will adequately reduce traffic noise levels within the specific plan boundary. However, as no specific projects are proposed the specific locations of any private outdoor living areas are not known. Additionally, final grading plans are required to determine the final barrier heights and ensure compliance with the appropriate standard. The above analysis shows that this standard is achievable with feasible barrier heights. To ensure that residential projects proposed for the project area achieve the 65 CNEL standard, City Staff shall review the preliminary designs to determine if any private outdoor living areas are potentially exposed to noise levels in excess of 65 CNEL. Prior to the issuance of grading permits for any residential area with outdoor living areas potentially exposed to noise levels in excess of 65 CNEL, as determined by the City, a detailed acoustical study shall be prepared by a qualified acoustical consultant and submitted to the City. This report shall describe and quantify the noise sources impacting the area and the measures required to meet the 65 CNEL exterior residential noise standard. The measures described in the report shall be incorporated into the grading and building plans, as appropriate. Indoor Noise Mitigation 4. New residential uses within the project area will be exposed to noise levels no higher than 76 CNEL. This means that the building structures will need to achieve up to 31 dB of outdoor -to -indoor noise reduction. This level of noise reduction is achievable, but will likely require substantial building upgrades. Most residential uses will not be exposed to noise levels in excess of 69 CNEL, which will require up to a 24 dB outdoor -to -indoor noise reduction. In some cases standard construction will achieve this level of reduction, however, residences along major roadways may require upgraded windows to achieve the required outdoor to indoor noise reduction. With typical residential construction at least 20 dB of outdoor -to -indoor noise reduction is achieved with windows closed. With windows open outdoor -to -indoor Program EIR National City Downtown Specific Plan September 2004 Page 10 noise reduction falls to 12 dBA. Therefore, units requiring more than 12 dB of noise reduction require adequate ventilation per the Uniform Building Code to allow windows to remain closed. Typically this is provided through mechanical ventilation. Windows do not need to be sealed shut, but closeable at the occupants' discretion. Units along National City Boulevard, 8th Street, Plaza Boulevard, and Roosevelt Avenue will require more than 12 dB of noise reduction and mechanical ventilation. With extensive building upgrades, outdoor -to -indoor noise reductions of up to 32 dB can be achieved. All residences require 32 dB or less of outdoor -to -indoor noise reduction. Therefore, the homes in the project will be able to meet the 45 CNEL interior noise standards. Architectural drawings for the homes are not currently available to analyze the actual noise reduction achieved. Prior to issuance of building permits for residential units located along National City Boulevard, 8th Street, Plaza Boulevard, and Roosevelt Avenue, a detailed acoustical study shall be prepared by a qualified acoustical consultant and submitted to the City. This report shall describe and quantify the noise sources impacting the building(s) and the measures required to meet the 45 CNEL interior noise standard. The measures described in the report shall be incorporated into the building plans. Commercial uses located within the 70 CNEL contour from the I-5 Freeway will require up to 26 dBA of outdoor -to -indoor noise reduction to meet the 50 CNEL office interior noise standard. Prior to issuance of building permits for commercial projects units located within the 70 CNEL I-5 Freeway noise contour as shown in Exhibit 6, a detailed acoustical study shall be prepared by a qualified acoustical consultant and submitted to the City. This report shall describe and quantify the noise sources impacting the building(s) and the measures required to meet the 50 CNEL office and/or 55 CNEL retail interior noise standards. The measures described in the report shall be incorporated into the building plans. Significance After Mitigation Repaving the roadways with specialized surfaces to reduce traffic noise levels is the only practical way to eliminate the noise impacts from increased traffic generated by the project. While the repaving of the roadway segments where significant project and cumulative noise impacts are projected is expected to eliminate the traffic noise level increases experienced at the affected residences, there is some uncertainty in exactly how much noise reduction will be experienced and how long that reduction will exist. Because of this uncertainty and the lack of other methods to mitigate the impacts, the significant project and cumulative off -site traffic noise impacts are considered unavoidable. 2.1.6 AIR QUALITY Project Impacts The adoption and implementation of the Specific Plan will have both short and long-term air emission impacts and contribute to air quality in the San Diego Air Basin. Based on air quality National City Downtown Specific Plan Program EIR September 2004 Page 11 modeling conducted for build -out of the Specific Plan it is not anticipated that future development will exceed any established air quality emission thresholds. However, because specific development projects are not proposed at this time, future projects could emit emissions that exceed air quality thresholds at that time. The City will evaluate all projects for potential air quality impacts at the time plans are submitted for approval. Measures to reduce air emissions will be incorporated when required to reduce both short and long-term air quality impacts for compliance with air emission thresholds enforced by SDAPCD. Mitigation measures are recommended that can be incorporated into the future projects to reduce air emissions, if they could exceed adopted emission thresholds. Mitigation Measures The following mitigation measures are recommended for incorporation into future projects to further reduce air emissions. Short Term Construction If air quality impacts associated with construction of an approved project exceed the significance thresholds, mitigation measures identified below should be implemented as feasible to reduce emissions of the project. Mitigation measures from the SCAQMD are presented below and are recommended for projects in the SDAB, where applicable. The following measures are recommended to reduce pollutant emissions from construction activities. The construction operators shall implement these measures. • Use water trucks to keep all areas where vehicles move damp enough to prevent dust raised when traveling on the site; • Wet down the site in the late morning and after work is completed for the day; • After construction, wet inactive areas down to reduce windblown dust; • Employ street sweeping, should silt be carried over to adjacent public roadways; • Wash off trucks leaving the site; • Reestablish ground cover on the construction site through seeding and watering on portions of the site that will not be disturbed for lengthy periods (such as two months or more); • Maintain construction equipment engines by keeping them tuned; and • Reduce traffic speeds on all unpaved road surfaces to 15 miles per hour or less. Long Term The most significant reductions in regional and local air pollutant emissions are attainable through programs, which reduce the vehicular travel associated with the project. Support and compliance with the RAQS for the basin is the most important measure to achieve this goal. The RAQS includes improvement of mass transit facilities and implementation of vehicular usage reduction programs. Additionally, energy conservation measures are included. None of these recommended mitigation measures are strictly required. However, all relevant measures should be applied to the greatest extent possible. National City Downtown Specific Plan Program EIR September 2004 Page 12 TDM Measures • Schedule truck deliveries and pickups for commercial uses during off-peak hours when feasible. This will alleviate traffic congestion, therefore, emissions during the peak hour. • Provide adequate ingress .and egress at all entrances to public facilities to minimize vehicle idling at curbsides. Presumably, this measure would improve traffic flow into and out of the parking lot. The. air quality benefits are incalculable because more specific data is required. • Provide dedicated turn lanes as appropriate and provide roadway improvements at heavily congested roadways. Again, the areas where this measure would be applicable are the intersections in and near the project area. Presumably, these measures would improve traffic flow. Emissions would drop as a result of the higher traffic speeds, but to an unknown extent. • Provide on -site services. Provide incentives such as on -site ATMs and other similar measures that address lifestyle needs. These measures reduce the VMT, but the air quality benefit cannot be quantified because more specific data is required. Energy Efficiency Measures and Additional Measures • Compliance with Title 24, Part 6, California's Energy Efficiency Standards for Residential and Nonresidential Buildings. All buildings must comply with Title 24, Part 6. Reducing the need to heat or cool structures by improving thermal integrity will result in a reduced expenditure of energy and a reduction in pollutant emissions. • Develop operational emissions mitigation plan. Prior to approval of each building permit for a commercial or office use, the applicant shall submit to the Director of Planning for approval, an operational emissions mitigation plan. The plan shall identify implementation procedures for each of the following emissions reduction measures. If certain measures are determined infeasible, an explanation thereof shall be provided in the operational emissions mitigation plan. o Utilize built-in energy -efficient appliances to reduce energy consumption and emissions. o Utilize energy -efficient and automated controls for air conditioners and lighting to reduce electricity consumption and associated emissions. • Develop plans to facilitate walking and use of bicycles. Prior to approval of each tentative tract map, the Applicant shall submit to the Director of Community Development for approval, a plan showing pedestrian/bicycle trails that facilitate connections to public facilities such as schools, parks, and regional trails, as well as between residential neighborhoods. National City Downtown Specific Plan Program EIR September 2004 Page 13 o Where possible, connect residential areas to public facilities, parks, regional trails and other residential neighborhoods with pedestrian/bicycle trails. o Where possible, connect commercial areas to adjacent residential areas via bike/walking paths. Coordinate with SDTC regarding the location of bus turnouts and bus routes within the project area. Significance After Mitigation As discussed above, specific development projects are not proposed as part of the specific plan. Because of this, it is speculative and not possible to produce reasonable estimates of construction related emissions. It is highly probable that emissions from some projects that will be developed as a result of the Specific Plan will generate construction emissions in excess of the significance thresholds. The short-term construction emissions can be reduced to some extent by the mitigation measures described above. However, it is probable that some construction emissions would still be in excess of the significance thresholds with mitigation. Therefore, short-term construction emissions associated with the project are considered unavoidable and adverse. Regional Impacts The long-term regional air quality impact due to the proposed project will be reduced to an extent with the mitigation measures described above. However, the amount of reduction cannot be quantified. The CO emissions increase due to the project would most likely remain above the significance thresholds even with incorporation of the recommended mitigation measures. Therefore, CO emission increases resulting from the project are considered unavoidable and adverse. Local Air Quality Impacts The CO emissions are projected to be in compliance with the 1-hour and 8-hour state and federal standards, therefore, the CO impacts are not considered to be significant. 2.1.7 HAZARDS AND HAZARDOUS MATERIALS Project Impacts The Downtown Specific Plan will not directly create a significant potential public health hazard or involve the use, manufacture, or disposal of materials that will pose a hazard to people and planned populations. The adoption and implementation of the Specific Plan will encourage the development of both public and private projects in the Project Area. It is speculative, however to determine if the Specific Plan could expose humans to significant health hazards if hazardous materials have been spilled. The development of sites that used hazardous materials in the past could expose the public or the environment to hazards due to the development of such sites. All properties proposed for development with spilled hazardous materials will have to comply with National City Downtown Specific Plan Program ER September 2004 Page 14 all applicable local, county, state and federal laws regarding the remediation of the hazardous materials prior to development. The Specific Plan will not change the requirements to remediate contaminated properties prior to development. Assistance by the Community Development Commission to construct public or private projects will not change or alter any local, county, State or federal requirements to remove hazardous materials in compliance with all applicable laws and regulations. Based on the threshold criteria, the Downtown Specific Plan will encourage development of property in the Project Area. It is possible that some sites in the Project Area may be contaminated with hazardous materials and result in significant adverse hazards and hazardous material impacts to the public or the environment. Mitigation Measures The following measures are recommended to mitigate potential hazardous material impacts of development in the Project Area with the adoption and implementation of the Specific Plan: 1. Prior to development of any property that was formerly occupied by or adjacent to existing facilities that used or stored hazardous materials, a detailed Phase I Environmental Site Assessment shall be approved by the City of National City to evaluate the potential for soil and groundwater contamination. If warranted by the Phase 1 environmental site assessment, soil and possibly groundwater sampling shall be required. 2. Asbestos, mercury, and a lead -based paint survey of existing buildings shall be conducted prior to any renovation or demolition activities to the satisfaction of the City. 3. Prior to issuance of a grading permit for any property where the results of the Phase I, Phase II, and/or asbestos, mercury, or lead -based paint evaluation indicates the presence of these materials or the potential for hazardous materials at levels requiring mitigation, all remedial measures identified in the studies shall be shown on the face of the grading plans and/or incorporated into contractor specifications prior to awarding the construction contract or issuance of a demolition permit, whichever is first. All remedial measures required by law shall be implemented and completed prior to the issuance of grading or building permits, whichever is issued first. Significance After Mitigation There will be no significant hazardouswaste impacts with adoption and implementation of the Specific Plan and implementation of the recommended mitigation measures. National City Downtown Specific Plan Program EIR September 2004 Page 15 2.1.8 POPULATION AND HOUSING Project Impacts The Specific Plan will allow an increase in the number of residential units that can be constructed in the Project Area beyond the number currently allowed by the General Plan. An increase in the number of housing units that can be provided to the residents. of National City will allow the City to provide a range of housing types towards meeting more of the housing needs of the community. In addition, because the Project Area is in a redevelopment project area the Community Development Commission has the legal authority to assist to provide financial assistance to upgrade, improve and provide additional residential housing, including low and moderate housing, which will be a positive impact for the community. The Specific Plan will require the City to adjust its projected housing and population projections to reflect the increase in the number of residential units. The Specific Plan will not require a displacement of a large number of people, rather it will allow construction of increased housing units to meet some of the current housing need in National City. The commercial and light industrial development proposed by the Specific Plan is less than allowed by the existing general plan, thus the project will not create a substantial demand for additional housing. Based on the threshold criteria the Specific Plan will not have a significant housing or population impact. Although the Downtown Specific Plan will increase the overall number of residential units allowed in National City, the City will adjust its housing and population projections accordingly during the upcoming Housing Element update. Mitigation Measures The Specific Plan will not have any significant housing or population impacts, therefore, no mitigation measures are required. Significance After Mitigation No significant population or housing impacts are anticipated with adoption and implementation of the Specific Plan. 2.1.9 CULTURAL RESOURCES Project Impacts Based on the threshold criteria, the Specific Plan will not impact any national or local historical resources. The Specific Plan does not propose to demolish or remodel any of the buildings in the Project Area that are registered as national or local historic structures. Mitigation Measures Since no significant cultural resource impacts have been identified no mitigation measures are required. National City Downtown Specific Plan Program EIR September 2004 Page 16 Significance After Mitigation No significant impacts to cultural resources are anticipated with adoption and implementation of the Specific Plan. 2.1.10 PUBLIC SERVICES Water Service Project Impacts The Specific Plan will encourage development that may increase the demand for potable water for drinking, fire suppression, and landscape maintenance. New development and/or redevelopment could require upgrades to the existing distribution system in order for development to have an adequate supply of water. The construction of upgrades to the existing water distribution system could have construction impacts, which will have to be specifically identified at the time water improvement plans are submitted for approval. The City, in conjunction with the Sweetwater Authority, will determine whether or not an adequate supply of water can be provided at the time development plans are submitted for approval. The Sweetwater Authority may require improvements to the existing water distribution system in order for a project to have an adequate supply of water. Projects will be required to incorporate all state mandated water conservation measures as applicable to reduce water consumption. The incorporation of state mandated as well as suggested water conservation measures will reduce water impacts to less than significant. Mitigation Measures The following mitigation measures are recommended to reduce water consumption impacts: 1. All water utility plans shall be approved by the Sweetwater Authority to ensure that adequate water service is provided to the development. 2. The City shall require the incorporation of all state mandated water conservation measures. The City shall also require the additional incorporation, as applicable, of water conservation measures including water efficient dishwashers, water pressure reducing valves, hot water pipe insulation, and hot water on -demand units as applicable. Significance After Mitigation No significant water distribution and supply impacts are anticipated with adoption and implementation of the Specific Plan and incorporation of the recommended mitigation measures. National City Downtown Specific Plan Program EIR September 2004 Page 17 Police Service Project Impacts The Specific Plan is anticipated to encourage development and increase the need the police protection services. Although measures can be incorporated into future projects to improve police safety, additional development will increase calls for service. An increase in service calls could impact the time it takes for police officers to respond to Priority One, Priority Two, and Priority Three calls. Additional service calls could impact the Police Department's ability to maintain desired levels of police service. Future development plans will be reviewed by the Police Department at the time they are submitted to the city for approval. The Police Department will, during their review, determine if design changes or safety hardware can be incorporated to reduce calls for service. The incorporation of the Police Department's recommendations will reduce calls for police protection. The development of additional projects in the Project Area may require additional police protection personnel and/or equipment to meet the Departments desired response times. Based on the threshold criteria, the Specific Plan could indirectly have significant impacts on police protection services. Mitigation Measures The following mitigation measure is recommended to reduce police protection impacts: 1. The Police Department shall review all future development projects for police protection impacts and ensure that additional police personnel and/or equipment are provided to provide an acceptable level of police protection services deemed acceptable by the Police Department prior to the issuance of building permits. Significance After Mitigation No significant police protection impacts are anticipated with adoption and implementation of the Specific Plan and incorporation of the recommended mitigation measure. Fire Protection Project Impacts The Specific Plan will encourage new development and redevelopment of existing uses. Increased development will increase the need for fire protection services. Additional demand for fire protection services could impact the Fire Department by reducing the ability of fire units to respond to calls throughout the City within its desired response time of five minutes. The Fire Department maintains a comprehensive Automatic Aid Agreement for fire protection services with the surrounding cities, including the County of San Diego. This agreement was established to provide assistance for major emergency incidents. All protected jurisdictions have mutually agreed to dedicate their resources, to the extent feasible, to major incidents in the state. If a fire emergency occurs in National City that requires additional fire personnel and equipment, fire departments from surrounding jurisdictions will respond when requested. Future development National City Downtown Specific Plan Program EIR September 2004 Page 18 plans will be reviewed by the Fire Department for compliance with the fire code. Additional measures to improve fire safety and reduce service calls will also be recommended by the Fire Department. Based on the threshold criteria, the Specific Plan could have significant impacts on the Fire Department by reducing emergency response times. Mitigation Measures The following mitigation measure is recommended: 1. The Fire Department shall review all future development projects for fire protection impacts and ensure that additional fire personnel and/or equipment are provided to provide an acceptable level of fire protection services deemed acceptable by the National City Fire Department prior to the issuance of building permits. Significance After Mitigation No significant fire protection impacts are anticipated with adoption and implementation of the Specific Plan and incorporation of the recommended mitigation measure. School Facilities Project Impacts Based on the threshold criteria the Specific Plan could have a significant impact on public schools due to an increase in the population in the Project Area. An increase in the population could increase the number of students that will attend area schools. The payment of developer impact fees as allowed by state law prior to the issuance of building permits will mitigate the impact due to the generation of additional students that will be generated by new development, both residential and commercial. Mitigation Measures Since no significant school impacts have been identified with adoption and implementation of the Specific Plan, no mitigation measures are recommended. Significance After Mitigation There will be no significant school impacts with adoption and implementation of the Specific Plan, therefore no mitigation measures are recommended. Sewage Services Project Impacts The Specific Plan proposes to increase the amount of development, which will impact the existing sewage collection system that serves the central portion of the Project Area. The sewer National City Downtown Specific Plan Program EIR September 2004 Page 19 system that serves the central portion may have to be upgraded to serve future sewage flows if they cannot be handled by existing facilities. The construction of upgrades to the sewage collection system could have construction impacts, which will have to be specifically identified at the time sewer improvement plans are submitted for approval. If development projects require upgrades to existing sewage collection facilities the project developer will have to pay the cost to upgrade the facilities in conjunction with project construction. Mitigation Measures The following mitigation measure is recommended to ensure that adequate sewage collection facilities are available to serve new development. 1. All development projects shall be reviewed by the National City Public Works Department to make sure that adequate sewer collection facilities will be available to serve the project. If the Public Works Department determines the existing sewer collection facilities are not adequate the project developer shall construct the facilities necessary to the satisfaction of the City Engineer prior to the issuance of occupancy permits. Significance After Mitigation There will be no significant sewage impacts with adoption and implementation of the Specific Plan and incorporation of the recommended mitigation measure. 2.1.11 Recreation Project Impacts Based on the threshold criteria, the adoption and implementation of the Specific Plan will not result in any significant park or recreational impacts. The City will collect a fee for each new residential unit constructed in the Project Area. The monies will be used to upgrade or provide additional recreational facilities as needed and the park fee will mitigate the impacts of the project on park and recreational resources. There are no activities associated with the Specific Plan that will reduce or eliminate existing park or recreational facilities. The Specific Plan will have positive impacts by providing additional landscaped open space and passive recreational facilities in the Project. Area, including a linear trail, sitting areas, fountain, etc. Mitigation Measures Since no significant park and recreational impacts have been identified with the adoption and implementation of the Specific Plan, no mitigation measures are recommended. National City Downtown Specific Plan Program EIR September 2004 Page 20 Significance After Mitigation No significant park and recreational impacts are anticipated with adoption and implementation of the Specific Plan. 2.2 PROJECT ALTERNATIVES The Project Alternatives presented in Section 7.0 of this document were provided as required by Section 15126.6 of the CEQA Guidelines. Alternatives to the project are provided to reduce potential significant environmental effects that may be associated with adoption and implementation of the proposed Downtown Specific Plan as well as feasible project alternatives. The project alternatives discussed in this Program EIR include the "No Project", as required by CEQA and Expanding the Project Area. Project alternatives are required to reduce potential environmental impacts associated with a proposed project. The Program EIR identified several potentially significant impacts with adoption and implementation of the Specific Plan. However, mitigation measures are recommended accordingly to reduce the impacts to levels of insignificance in all instances. The project alternatives discuss changes to the Downtown Specific Plan that could reduce potential environmental impacts. Neither of the project alternatives is preferred to the proposed Specific Plan because neither alternatives will completely eliminate project impacts and accomplish the goals of the Specific Plan. 2.3 AREAS OF CONTROVERSY/ISSUES TO BE RESOLVED CEQA requires the EIR Summary to identify areas of controversy known to the lead agency, including issues raised by public agencies, issues to be resolved including the choice among alternatives, and how to mitigate potential significant effects. A copy of the Notice of Preparation/Initial Study was mailed to all responsible, trustee and taxing agencies as required by CEQA to solicit their environmental concerns with the project. The responses received by the responsible and trustee agencies to the Notice of Preparation/Initial Study discussing their issues or concerns with adoption and implementation of the Specific Plan are presented in Appendix B. Responses were received from the following public agencies during the 30-day Notice of Preparation/Initial Study review period: a. Carol Baubatz, Native American Heritage Commission b. Greg Holmes, Department of Toxic Substances Control c. Terry Roberts, Governor's Office of Planning and Research d. Mario H. Orso, Department of Transportation, District 11 This Program EIR presents as much information as possible regarding the issues raised by the public agencies listed above. Information such as the specific location of future development projects is not known at this time. Therefore, it is speculative to determine specifically the final development density, number of residential units, height of buildings, square footage of National City Downtown Specific Plan Program EIR September 2004 Page 21 commercial or industrial use, site access, design, etc. associated with future development of individual sites within the Project Areas pursuant to the Specific Plan. Detailed project information will be available for further analysis at the time specific projects are submitted to the City for approval. The City will determine whether or not subsequent environmental evaluation as required by CEQA will be undertaken at the time each project is submitted for approval. National City Downtown Specific Plan Program EIR September 2004 Page 22 "\,\`�\�11115Ayt��i nnNl71/1!/f/ • NATIONAL CITY, CALIFORNIA APPLICATION for: Specific Plan V. Amendment of a Specific Plan a 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 DEPARTMENT USE ONLY Case Number SP -• .2m5 •� Filing Fee S 7O1 1 Receipt No. Date Received By E.A.F. Required Fee S Related Cases SEE FILING INSTRUCTIONS AND CHAPTER 18.112 OF THE NATIONAL CITYMUNICIPAL CODE FOR MORE INFORMATION. I/We hereby request the National City Planning Commission to set a public hearing to consider a Specific Plan or an Amendment of Specific Plan No. 4 l3 - (-1 , Ordinance No. or Resolution No. 2 o0 t5 -101 to accomplish the following: Zc r-eNt\ 11 V tINI G.M i-orNIT W 1.3 SC r Pt_ 4ou c t (z a .o c.IL 'tb S`►c— �M .,.rim .n. i]wn �_� a.r j D qa L Of-Na FWL- NI L yl� - (�cc*" or-) 'll� E i UZT ye/ R L NOTE: Applicant must furnish an Assessor's page obtainable from County Assessor's Office or a plat prepared by a title company, a licensed engineer or land surveyor showing exact boundaries of the subject property. Sketches, maps, etc. that will aid the Planning Commission's review of this request are encouraged Specific Plan or Amendment of a Specific Plan Application Revised December, 1998 Page 1 of 5 Attarhmnnt • • This request for a public hearing for a Specific Plan or Amendment of a Specific Plan is being requested for the following reason(s): vt, (2- N S-�(P ` coM e -c€L -' -t- * -nui- O Qom... le) &e- A- (A(L L- W) Veo- O VP v"rc P l b .3 (stSeP jcw>1. Let UN t,,J Al l 1',p 00 5 t2�.l+ct�c e- `u-- - • V (1-4-'72cCult,Uti W-Aecs- PROPERTY OWNER(S) of all property included in this application: (Attached extra sheets if necessary). Name: Name: Signature '/_... Signature (Signature ac ow . ges that this (Signature acknowledges that this application is being filed) application is being filed) Address: I S 6 C. kV i C. to • FO Address: SAO fit. , a iisD Phone No. to {G'j .4- 65 • ��" Phone No. Fax No. I` t• f v 1 �2. - 4 7-'11-- Fax No. Date: 1-* • '2 t5. 05 Date: Note: All owners of property within the boundaries of the existing and proposed Speck Plan must sign their consent. Attach an ownership list with consent signatures for more than one ownership. Specific Plan or Amendment of a Specific Plan Application Revised December, 1998 Page 2 of 5 4 APPLICANT Name: (Please type or print) Signature: • 2 (Si ture es t the information submitted with this application is true and accurate to the best of the applicant's knowledge). Address: S a✓ D c.` r O CA q 2-r 0 4_ Phone No. tM 01 . 29 , 'SS Fax No. -t' 64( Z. • 11017 O _ L S Date: V R• 2 s. 05 ATTACHMENTS: Land Use Code Section 18.112.090 California Government Code Section 65461 Specific Plan or Amendment of a Specific Plan Application Revised December, 1998 Page 3 of 5 City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE November 15 2005 AGENDA ITEM NO 24 ITEM TITLE Resolution amending the boundary of the National City Downtown Specific Plan to include properties at the northeast corner of 9th Street and D Avenue. Applicant: Gulf Unlimited Corporation Case File No.: SP-2005-2 PREPARED BY DEPARTMENT Raymond Pe, MCP Community Development Commission Redevelopment Projects anager EXPLANATION The proposed amendment would add approximately 0.41 gross acres to the Downtown Specific Plan, Development Zone 10. The Planning Commission held a public hearing on this item at their October 17, 2005 meeting. The attached background report describes the amendment in detail. Environmental Review Addendum to Certified Program EIR Financial Statement Not applicable Account No STAFF RECOMMENDATION Staff concurs with the recommendation of the Planning Commission BOARD / COMMISSION RECOMMENDATION On October 17, 2005, the Planning Commission voted to recommend approval of Specific Plan Amendment (SP-2005-2). Ayes: Alvarado, Baca, Carrillo, Flores, Graham, Martinelli, Pruitt Noes: None Absent: Reynolds ATTACHMENTS 1. Resolution L Resolution No. RESOLUTION NO. 2005 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING AN AMENDMENT TO THE BOUNDARY OF THE NATIONAL CITY DOWNTOWN SPECIFIC PLAN TO INCLUDE PROPERTIES AT THE NORTHEAST CORNER OF 9TH STREET AND D AVENUE APPLICANT: GULF UNLIMITED CORPORATION CASE FILE NO. SP-2005-2 WHEREAS, proceedings were initiated for the amendment of the Downtown Specific Plan in accordance with procedures of the Land Use Code (Chapter 18.112); and WHEREAS, the Planning Commission considered an amendment to the boundary of the Downtown Specific Plan to include properties at the northeast corner of 9th Street and D Avenue at a duly advertised public hearing held on October 17, 2005, at which time oral and documentary evidence was presented; and WHEREAS, the Planning Commission considered the proposed Addendum to the Certified Program Environmental Impact Report for the Downtown Specific Plan together with all evidence and testimony presented at said public hearing; and WHEREAS, at the conclusion of the public hearing the Planning Commission recommended adoption of the amendment to the boundary of the Downtown Specific Plan, Development Zone 10, to include properties at the northeast corner of 9th Street and D Avenue; and WHEREAS, the City Council considered an amendment to the boundary of the Downtown Specific Plan to include properties at the northeast corner of 9th Street and D Avenue and the proposed Addendum to the Certified Program Environmental Impact Report for the Downtown Specific Plan at a duly advertised public hearing held on November 15, 2005, at which time oral and documentary evidence was presented; and WHEREAS, the City Council considered the recommendation and findings of the Planning Commission and the staff report contained in Case File No. SP-2005-2 which is maintained by the City and incorporated herein by reference together with all evidence and testimony presented at said public hearing; and WHEREAS, this action is taken pursuant to all applicable procedures required by State law (Government Code section 65453 et. al.) and City law; and WHEREAS, the City Council recognizes the need and desirability to provide specific guidance for implementation of the General Plan; 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 City Council of the City of National City that the testimony and evidence presented at the public hearing supports the following findings: Resolution No. 2005 — November 15, 2005 Page 2 1. The proposed amendment is in the public interest since it would allow for the comprehensive planning and development of the half block and ensure an appropriate buffer and transition in land use intensity between the higher intensity Development Zone 9 to the north and the less intensive RS-3 singlefamily residence zone to the south. 2. The proposed amendment is consistent with the General Plan and Specific Plan, which encourage the revitalization of downtown, the transition from higher intensity development in the downtown core to Tess intensive development near outlying residential neighborhoods, and the implementation of design guidelines and development standards to achieve high quality development. 3. The proposed amendment is consistent with the Specific Plan, which has identified the 9th Street corridor as a lower intensity urban residential street that will form an important east -west connection between Central Elementary School and Education Village. BE IT FURTHER RESOLVED that the City Council has considered the proposed Addendum to the Certified Program Environmental Impact Report for the National City Downtown Specific Plan, and finds on the basis of the whole record that there are no substantial changes to the project or circumstances that will result in new significant impacts or a substantial increase in the severity of previously identified impacts and that the Addendum reflects the City's independent judgment and analysis. NOW, THEREFORE, the City Council adopts an amendment to the boundary of the National City Downtown Specific Plan to include properties at the northeast corner of 9th Street and D Avenue (Exhibit SP-2005-2 attached). PASSED and ADOPTED this 15th day of November, 2005. Nick Inzunza, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney EXHIBIT SP-2005-2 """""'°"1 ADOPTED AMENDMENT 19 701 709 8 618 4 r 305 632 714 0 730 isN 811 817 829 325 629 423 7S:4 704 ST. MAW'S CATHOLIC CHURCH 0 310= 1018 1025 707 0 430 832 2 '1023 1025 505 SCHOOL C 706 521 N 500 0 CENTRAL ELEMENTARY I024 1048 0 200 400 600 Feet 800 1,000 City of National City, California COUNCIL AGENDA STATEMENT r1EETING DATE November 15, 2005 AGENDA ITEM NO. 25 ITEM TITLE REPORT ON MOBILEHOME PARK CONVERSIONS PREPARED BY George H. Eiser, III EXPLANATION 4221 DEPARTMENT City Attorney Please see attached memorandum. Environmental Review Financial Statement N/A X N/A Account No. STAFF RECOMMENDATION Provide direction to staff. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) Memorandum 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, III • City Attorney (619) 336-4220 Fax: (619) 336-4327 TDD: (619) 336-1615 TO: Mayor and City Council FROM: City Attorney SUBJECT: Mobilehome Park Conversion Ordinance DATE: November 3, 2005 INTRODUCTION The question has arisen as to the necessity or desirability of National City enacting an ordinance to address the conversion of a mobilehome park to individually -owned units. This memorandum discusses the issues involved in the adoption of such an ordinance. DISCUSSION The cessation or closure of land used as a mobilehome park or the conversion of its use to separate, residential units, is not currently regulated by the City of National City in its Municipal Code. State law currently regulates certain aspects of mobilehome conversions. (Government Code Section 65863 et al.). Conversions may also trigger additional requirements of the owner when other land use entitlements are sought in the change of use. For example, conversions requiring tentative maps require additional steps than what is otherwise required for general tentative map applications, such as a field survey. (Government Code Section 66428.1; see also, Public Resources Code Section 21080.8 related to CEQA). The Government Code generally requires the local entity's involvement in three aspects of the conversion, stemming from the required preparation by the owner of an impact report as to the affect of the closure on the displaced residents, a copy of which is to be provided to each resident. The local public entity is required to review the report and hold a hearing as to the report's sufficiency, if requested by the residents who are to be displaced. The local entity may also require mitigation steps be taken by the owner related to relocation of the displaced residents. (Government Code Section 65863.7). If additional land use entitlements are requested by the owner in the conversion, the local entity must also make sure that the residents are given notice according to specific provisions in Civil Code Section 798.56. The conversion of a mobilehome park to another use may also trigger other existing state and local regulation requirements, such as a General Plan amendment, a rezoning, amendment of the affordable. housing element, a tentative or parcel map, and/or an EIR, in addition to an economic assessment impact report. ® Recycled Paper Mobilehome Park Conversion Ordinance November 3, 2005 Page Two City ordinances throughout the state related to mobilehome conversions vary significantly in length and depth. City ordinances have been reviewed which are as short as one paragraph and as long as fifteen pages, depending on the legislators' interest in the depth of regulation. For example, attached is an eight -page ordinance of the City of Union City, setting forth detailed local procedures for implementation of applicable state law. (See Attachment "A"). In contrast, the one-half page ordinance of the City of Salinas, also attached, is limited to a brief outline of the steps required to be taken. (See Attachment `B"). CONCLUSION Because state law for the most part already addresses the requirements for mobilehome park conversions, additional local regulations are not legally required in order for a mobilehome park conversion to occur, and such regulations have not been enacted in most cities in California. Options for National City concerning mobilehome conversion regulations include 1) lengthy, detailed procedures for implementing state law (see attachment "A"); 2)a concise regulation, that summarizes the required procedural steps (see Attachment `B"), or 3) no further regulation, with reliance solely upon state law. Direction is requested from the City Council as to which alternative best meets the needs of the community. GEORGE 1. EISER III, City Attorney rage 1 or 8 Chapter 16.09 CONVERSIONS OF MOBILEHOME PARKS TO OTHER USES Section: 16.09.010 Citation. 16.09.020 Definitions. 16.09.030 Conversion impact report —Data on mobilehome owners and tenants —Duty to file. 16.09.040 Conversion impact report —Informational meeting(s)—Notice and distribution to mobilehome owners and residents. 16.09.050 Notice to new residents regarding pending change in status of park —Relocation assistance. 16.09.060 Relocation assistance. 16.09.070 Application for exemption from relocation assistance obligations. 16.09.080 Change of use determination —Application for conversion —Hearing —Findings. 16.09.090 Appeal to City Council 16.09.100 Obligations of applicant or mobilehome park owner after approval of conversion impact report. 16.09.110 Payment of relocation assistance benefits —Prerequisite to issuance of building permit to redevelop park. 16.09.120 Eminent domain. 16.09.130 Administration fee. 16.09.140 Remedies for noncompliance. 16.09.010 Citation. This chapter may be referred to as the "Mobilehome Conversion Ordinance" of the City of Union City. (Ord. 344-90 § 2 (part), 1990) 16.09.020 Definitions. As used in this chapter, the following words and phrases shall have the following meanings: A. "Administrative hearing" means a fact -gathering proceeding conducted by a Hearing Officer (a licensed attorney appointed by the City Manager) as follows: 1. Thirty calendar days written notice shall be given of all proceedings to the park owners and the residents thereof by first class mail; such notice shall also be posted in a public area within the mobilehome park; 2. The hearing shall be open to the public; 3. Oral and documentary evidence shall be received by the Hearing Officer from park owners and residents thereof; 4. The parties shall be permitted to examine and cross-examine witnesses as determined by the Hearing Officer; 5. The formal rules of evidence shall not apply, but all findings shall be on competent evidence; 6. The Hearing Officer shall have wide discretion to determine the order of proof and the presentation of evidence; 7. The .proponent of an application, report or statement as provided in this chapter shall have the burden of producing substantial evidence in support thereof; 8. All proceedings shall be taped or stenographically recorded and the entire record shall be preserved for one year following final action on any application or request under this chapter; 9. All documents offered shall be preserved with the record whether or not the document was admitted to the record; 10. All findings shall be based on substantial evidence in the record; 11. All findings shall include a statement of the supporting evidence; 12. Written findings shah be prepared and signed by the Hearing Officer within fifteen calendar days after close of the hearing; 13. Review of the Hearing Officer's findings shall be sought as provided in Code of. Civil Procedure 1094.5 and 1094.6 within ninety days after final action by the City except when the Hearing Officer's findings and Attachment A http://www.codepublishing.corn/CA/UnionCity/unioncity 1 6/unioncityl 609.htm 11/8/2005 wiaYwi LU.V7 .?age 2 o P_, decision are final as provided in this chapter; 14. The ninety day period of limitations provided in Code of Civil Procedure 1094.6 is hereby adopted for this chapter. B. "Change of use" means a use of a mobilehome park for a purpose other than the rental, or holding out .for rent of one or more mobilehome spaces to accommodate mobilehomes for human habitation. "Change of use" includes, but is not limited to, a change of a mobilehome park or any portion thereof to a condominium, stuck cooperative, or any form of ownership wherein mobilehome spaces within the park are to be sold for resider lid use; or change to another residential use or to a commercial or industrial use; or the cessation of use of all or a portion of the mobilehome park, whether immediately or on a gradual basis; or the closure of the mobilehorne park. The term "conversion" is synonymous with "change of use." However, the "change of use" or "conversion" of a rental mobilehome park to resident ownership or other form of ownership requiring the filing of a subdivision map shall be govemed not only by this chapter and the other relevant provisions by Title 16, but also by the relevant provisions of Title 17 including specifically Chapter 17.85. C. "Comparable housing" means homing which is comparable in floor area and number of bedrooms to the mobilehome to which comparison is being made, which homing meets the minimum standards of the Uriforrn Housing Code. D. "Comparable mobilehome park" means any other mobilehome park substantially equal in terms of park amenities and rent. E. "Date of application for change of use" means the date of one of the following actions authorizing a change of me, whichever first occurs: filing of an application for a General Plan amendment, rezoning, tentative map or conditional use permit. F. "Eligible mobilehome owner" means a mobilehome owner whose mobilehome was located in a mobilehome park on the earlier of the following: (i) the date of application for a change of use; (ii) the date of filing of a notice of determination that the park is undergoing a change of use, if such notice was filed. G. "Mobilehome" means a structure designed for human habitation and for being moved on a street or highway under permit pursuant to Section 35970 of the Vehicle Code. Mobilehome includes manufactured home, as defined in Section 18007 of the Health and Safety Code, and a mobilehome, as defined in the Health and Safety Code but does not include a recreational vehicle, as defined in Section 799.24 of the Civil Code, or a commercial coach, as defined in Section 18001.8 of the Health and Safety Code, or factory -built housing, as defined in Section 19971 of the Health and Safety Code. H. "Mobilehome owner" means a person who has a tenancy in a mobilehome park under a rental agreement, having the right to the use of a mobilehome space on which to locate, maintain and occupy a mobilehome, site improvements and accessory structures for human habitation, including the use of the services and facilities of the mobilehome park. Mobilehome owner does not include a person who is a resident in a mobilehome but who does not have a tenancy. I. "Mobilehome park" means any area or tract of land within the City of Union City where one or more mobilehome lots are rented or leased or held out for rent or lease to accommodate mobilehomes used for human habitation, but does not include any temporary trailer park or recreational trailer park, as defined in Chapter 16.08 of the Union City Municipal Code. The rental paid for any such mobilehome shall be deemed to include rental for the lot it occupies. J. "Mobilehome space" means the site within a mobilehome park intended, designed or used for the location or accommodation of a mobilehome and any accessory structures or appurtenances attached thereto or used in conjunction therewith; provided, however, that the term mobilehome space shall also include the term mobilehome in those cases, and in only those cases, in which an individual rents or leases both a mobilehome site and the mobilehome located on that site from the park owner. K. "Park owner" means any owner, lessor or sub -lessor of a mobilehome park in the City who receives or is entitled to receive space rent under a rental agreement for the use or occupancy of any mobilehome space thereof, and the representative, agent, or successor of such owner, lessor or sublessor, and who is required to report to the Internal Revenue Service any income received or loss of income resulting from such ownership or claims any expenses, credits or deduction became of such ownership. Park owner does not include a mobilehome owner who rents out or subleases the mobilehome owned by such mobilehome owner. L. "Mobilehome tenant" is a person who occupies a mobilehome within a mobilehome park pursuant co a bona fide lease or rental agreement with the mobilehome owner, and who, during his/her tenancy, was not a member of the immediate household of the mobilehome owner. M. "Resident" means any person lawfuiiy occupying a mohilenome, including a mobilehome owner, mobilehome tenant or member of thr= immediate household of the mobilehome owner or mobilehome tenant. http://www.codepublishing.com/CA/UnionCity/unioncity 1 6/unioncity1609.htm Attachment A 11/8/2.005 411ap 1...1 1 V.V7 Page 3 of 8 (Ord. 550-99 § 1, 2000; Ord. 344-90 § 2 (part), 1990) 16.09.030 Conversion impact report —Data on mobilehome owners and tenants —Duty to file. A. Any person who files an application with the City for a General Plan amendment or for a rezoning of land use type or density, or for approval of a tentative map (including a tentative parcel map), or other application for the purpose of a change of use of a mobilehome park shall simultaneously file a conversion impact report with the Community Development Director, complying with the requirements of this section. No such application shall be considered or deemed completed or processed for consideration and approval unless and until such conversion impact report shall have been filed as required by this subsection. B. The conversion impact report shall contain the following information: 1. The names and addresses of all mobilehome owners within the mobilehome park (including absentee mobilehome owners), as shown on the rental agreement applicable thereto, and the names and addresses of all mobilehome tenants as of the earlier of the following dates: (i) the date of application for change of use; (ii) the date of filing of a notice of determination that the mobilehome park is undergoing a change of use, if such a notice was filed prior to the application; 2. The age, including date of manufacture, of each mobilehome within such park, including the type of mobilehome, width characteristics, size and number identifying the mobilehome space being occupied; 3. A list of vacant mobilehome spaces in comparable mobilehome parks within a fifty mile radius of such park. The list shall contain a schedule of site rental rates for each mobilehome park listed, and criteria of the management of each mobilehome park for acceptance of mobilehome owners as new tenants and mobilehome tenants; 4. A relocation plan, which will include a timetable for implementing the physical relocation of mobilehomes, implementation of relocation assistance, and date that conversion of the park to one or more uses will begin; 5. A specification of relocation assistance, which shall comply with the requirements of Section 16.09.060. C. A list of the names, addresses and mobilehome space identification numbers of all persons whose names are required pursuant to subdivision 1 of subsection B of this section shall be filed separate and apart from the conversion impact report. The application shall file such list with the Community Development Director not later than the date of application for change of use. (Ord. 344-90 § 2 (part), 1990) 16.09.040 Conversion impact report —Informational meeting(s)—Notice and distribution to mobilehome owners and residents. A. Not less than thirty days prior to the administrative hearing on the conversion impact report scheduled pursuant to Section 16.09.080(A), the applicant shall transmit to the mobilehome owner and the mobilehome tenant of each mobilehome occupying a mobilehome space within the park, a copy of this chapter and notices of the date, time and place of the administrative hearing on the conversion impact report and the information meetings or meetings required to beheld pursuant to subsection D of this section. B. The copies of the conversion impact report, and notices of the administrative hearing and the informational meetings shall be transmitted by first class mail and shall be posted in a public area within the mobilehome park. Where more than one person occupies a mobilehome, notice need only be sent to the person or persons whose name or names appear on the rental agreement pertaining to that mobilehome space. - C. Not less than fifteen days prior to the date of the administrative hearing, the applicant shall cause to be filed with the Community Development Director a verification that the applicant has complied with the requirements of this section pertaining to transmittal of copies of the conversion impact report and of the notices of- the administrative heating on the conversion impact report and on the informational meeting or meetings. D Not later than fourteen days prior to the scheduled administrative hearing on the conversion impact report, the applicant shall conduct not less than one informational meeting for the residents of the mobilehome park. regarding the status of the application for conversion or the impending change of use, the timing of proposed relocation of residents, relocation benefits available, and the contents of the conversion impact report. The meeting shall be conducted on the premises of the mobilehome park. The applicant may conduct a series of meetings of groups of residents if a sufficient number are scheduled to accommodate all of the residents. The housing specialist or specialists designated in tho ecnversion impact report shall be present at such meeting or meetings. E. Not Tess than five days prior to the administrative hearing on the conversion impact report, the applicant shall file with the Community Development Director a statement made under penalty of perjury that the applicant h3s complied with the requirements of subsection D of this section. Such statement shall state the Attachment A http://www,codepublishing.com/CA/Uni onCity/unioncity l 6/unioncity 1609.htm 11 /8/2005 Vudt)Lcl iv.V7 rvc date, time and place where such meeting or meetings was or were conducted. (Ord. 344-90 § 2 (part), 1990) 16.09.050 Notice to new residents regarding pending change in status of park —Relocation assistance. When an application for a change of use of a mobilehome park has been filed with the Community Development Director, the park owner shall advise each new resident who commences occupancy of a mobilehome within such park after the filing of such application, in writing, prior to commencement of such occupancy,that such application has been filed, and that the resident may not be entitled to any relocation assistance pursuant to Section 16.09.060. The park owner shall obtain a signed acknowledgement of each such resident indicating receipt of such information. (Ord. 344-90 § 2 (part), 1990) 16.09.060 Relocation assistance. A. The applicant shall include within the conversion impact report a statement of relocation assistance w17 ich complies with the requirements of this section and that the applicant shall be responsible for providing such relocation assistance when the Planning Commission shall have determined that the conversion impact report complies with the requirements of this chapter except where and to the extent that such applicant shall have been exempted from any such requirement pursuant to Section 16.09.080. B. Relocation assistance shall consist of the reasonable costs of relocating each eligible mobilehome owner giving consideration to each of the following factors: 1. The in -place value of each mobilehome, up to one hundred percent where necessary to mitigate hardship of the mobilehome owner, with the in -place value determined without consideration of the effect the change: of use may have on the value of the mobilehome; 2. The age, type, style, size and amenities of each mobilehome; 3. The likelihood that each mobilehome will be accepted at another mobilehome park within a reasonable distance and consideration of the mobilehome owner's job location, medical facilities and other important facilities; 4. The availability of housing for the mobilehome owner at a reasonable cost in new housing to be created on the conversion site and the displacement cost for the construction period, including housing and Iiving expenses; 5. All four of the above factors are to be utilized together with the object of mitigating the hardship en the mobilehome owner and avoiding economic waste for the mobilehome park owner. C. In order to facilitate the intentions of the mobilehome owners and an applicant for a change of use, the parties may agree to mutually satisfactory relocation assistance. To be valid, such an agreement shall be in writing, shall include a provision stating that the mobilehome owner is aware of the provisions of this chapter, shall include a copy of this chapter as an attachment, shall include a provision in at least ten -point type which clearly states the right to seek and the importance of obtaining an attorney's advice prior to signing the agreement, and shall be drafted in form and content otherwise required by applicable State law. No mobilehome owner signing a relocation assistance agreement provided for in this subsection may contest the adequacy of the conversion impact report at the hearing on such report. Any mobilehome owner signing such an agreement may rescind it in writing within ten days of signing it. Any such agreement which is procured by fraud, misrepresentation, coercion or duress, of any kind, shall be void and unenforceable. D. Services of Housing Experts. All eligible mobilehome owners, except for those not occupying mobilehomes within the mobilehome park, and all mobilehome tenants of eligible mobilehome owners shall be provided with the services of one or more housing experts to assist them in relocation to available and appropriate housing upon their request. Any such experts shall be familiar with the housing market, individual needs for housing types, and income and loan requirements of various types of housing. Such assistance shall include financial advice, the explanation of the various housing alternatives available, and transportation of residents who are unable to operate motor vehicles to the various housing alternatives. Language translators shall be made available when necessary. Any housing experts or language translators selected by the applicant shall be subject to the approval of the Community Development Director. E. Right of First Refusal —Below Market Rate Housing on Site. All eligible mobilehome owners and all mobilehome tenants of eligible mobilehome owners shall be provided with a right of first refusal to purchase housing to be constructed for sale on the site of the mobilehome park, or to lease or rent rental housing to be constructed for lease or rental on such site. Such persons shall also be entitled to first priority to purchase or rental of below market rate units which may be constructed on the site of the mobilehome park pursuant to the applicable program of the City if such persons are other -wise qualified for such housing. F. No benefits shall be provided to any person who is renting a mobilehome from the park owner (who owns http://www.codepublishing. com/CA/UnionCity/unioncity 1 6/unioncity 1609.htm Attachment A 11 /8 /2005 rage.'via the mobilehome) where such tenant shall have executed a written agreement with such park owner waiving his/her rights to any such benefits. No such waiver shall be valid unless it contains the text of this section, and unless such tenant shall have executed a written acknowledgment that he/she has read and understands his/her rights pursuant to this chapter and knowingly agrees to waive them. G. No waiver by an eligible mobilehome owner of any of his/her rights pursuant to this section shall be valid or effective for any purpose except with regard to a relocation assistance agreement as provided in this section. (Ord. 344-90 § 2 (part), 1990) 16.09.070 Application for exemption from relocation assistance obligations. A. Any person who files an application for change of use of a mobilehome park may, simultaneous with such application, file an application for total or partial exemption from the obligation to provide relocation assistance pursuant to Section 16.09.060. B. If such application is filed, notice of such application, •with the information contained therein, and distribution thereof to the owners and residents of the mobilehome park shall be accomplished pursuant to subsections A and B of Section 16.09.080. C. Any such application shall state that it is made on either or both of the following bases: 1. That provision of relocation assistance would eliminate substantially all reasonable use or economic value of the property. Such basis may only be established if it is demonstrated that the imposition of such obligations would eliminate the reasonable use or economic value of the property for alternate uses, and that continued use of the property as a mobilehome park would eliminate substantially all reasonable use or economic value of the property for reasons not caused or contributed by the park owner or applicant; 2. That a court of competent jurisdiction has determined in connection with a proceeding in bankruptcy that the closure or cessation of use of said property as a mobilehome park is necessary, and that such court has taken further action which would prohibit or preclude payment of relocation assistance benefits, in whole or in part. D. Any such application made pursuant to subdivision 1 of subsection C of this section shall contain, at a minimum, the following information: 1. Statements of profit and loss from the operations of the mobilehome park for the most recent five year period from the date of the application or request, certified by a certified public accountant. All such statements shall be maintained in confidence as permitted by the California Public Records Act; 2. If the applicant contends that continued use of the property as a mobilehome park necessitates repairs or improvements or both, and that the cost thereof makes continuation of the park economically infeasible, a statement made under penalty of perjury by a general contractor licensed as such pursuant to the laws of the State of California certifying that such contractor has thoroughly inspected the entire mobilehome park; that such contractor has determined that certain repairs and improvements must be made to maintain the park in a decent, safe and sanitary condition; the minimum period of time in which such improvements or repairs must be made; an itemized statement of such improvements and repairs; and the estimated cost thereof with the cost of repairs and improvements, if any, due to deferred maintenance separately identified. The applicant shall also submit a statement verified by a certified public accountant as to the necessary increase in rental rate of mobilehome spaces within the park within the next five years necessary to pay for such repairs or improvements. If the Community Development Director requires an analysis of the information submitted by the general contractor, the Director may procure the services of another such licensed general contractor to provide such written analysis, and the cost thereof shall be billed to and payment thereof shall be required from the applicant;' 3. The estimated total cost of relocation assistance which would otherwise be required to be provided pursuant to this chapter, which shall be based upon documented surveys, included with the application, of the available mobilehome spaces within a fifty mile radius of the mobilehome park, and the value of the mobilehomes in the park; 4. An estimate of the value of the mobilehome park by a qualified real estate appraiser if the park were permitted to be developed for the change of use proposed in the application, and an estimate of the value of such park by such appraiser if use of the property as a mobilehome park is continued; 5. Such other information which the applicant believes to be pertinent, or which may be required by the Community Development Dircctcr. E. Any such application filed pursuant to subdivision 2 of subsection C of this section shall be accompanied by adequatedocumentation as to the title, case number, and court in which the bankruptcy proceeding was held, and copies of all pertinent judgments, orders, and decrees of Such court. (Ord. 344-90 § 2 (part), 1990) Attachment A http://wvuw.codepublishing.com/CAIUnionCity/unioncity l 6/unioncity1609.htm 11/8/2005 lAldFLO1 1 V.v7 ?ago A of 8 16.09.080 Change of use determination —Application for conversion —Hearing findings. A. When a change of use determination has been made, or when an application has been filed for a General Plan amendment, rezoning, tentative map, or other application for the proposed change of use of a mobilehorne park, the Community Development Director shall schedule an administrative hearing to be held on the conversion impact report, and on any application for exemption from relocation assistance obligations, in the manner provided in Section 16.09.020(A). Findings made by the Hearing Officer shall be delivered to the Planning Commission. The Hearing Officer shall make specific findings on the factors listed in Section 16.09.060(B). B. Based on the findings of the Hearing Officer, the Planning Commission shall make findings and a decision on the adequacy of the conversion impact report and any exemption application in conjunction with a public hearing on any General Plan amendment, rezoning, tentative map or other application for a change of use C. The Planning Commission shall make one of the following findings on the conversion impact report based on the findings of the Hearing Officer: 1. That the conversion impact report complies with the requirements of this chapter; 2. That the conversion impact report does not comply with one or more requirements of this chapter. In such instance, the Planning Commission shall indicate in which respects the report does not comply with any such requirement. If the project is approved, the Planning Commission may condition such approval upon amendments to the Relocation Assistance Plan. D. Where an exemption from relocation assistance has been applied for based upon the impact of such assistance upon the reasonable use of the property pursuant to Section 16.09.070(C)(1), the Planning Commission shall make one of the following findings based on the findings of the Hearing Officer: 1. That the applicant shall not be exempt from relocation assistance obligations because substantial evidence has not been shown that both of the following are true: that the continued use of the property' es a mobilehome park would eliminate substantially all reasonable use of such property, and that the cost of relocation assistance benefits which would otherwise be required by this chapter for alternative uses would eliminate substantially all reasonable use or economic value of the property for such uses; 2. That the applicant or owner shall be exempt from relocation assistance obligations, in whole or iri part, because he/she has shown substantial evidence that continued use of the property as a mobilehome park would eliminate substantially all reasonable use or economic value of such property; that imposition of such obligations, in whole or in part, would eliminate substantially all reasonable alternative use or economic value of the property; and that relocation assistance is not feasible because such assistance is not capable of being accomplished in a successful manner within a reasonable period taking into account economic, environmental, social and technological factors. In making findings on an exemption application, the Hearing Officer and the Planning Commission may take into account the financial history of the mobilehome park, its condition and the condition of amenities and improvements thereon, the cost of any necessary repairs, improvements or rehabilitation of such park, the estimated cost of relocation assistance benefits, the fair market value of the property for the proposed alternative use, the fair market value of the property for continued use as a mobilehome park, and other pertinent evidence presented. In rendering its decision, the Planning Commission shall have the power to eliminate or waive all or portions of any type of benefit which would otherwise be applicable, if required by this section. The Commission shall expressly indicate in its decision any such waiver or elimination and the degree thereof, and a detailed explanation for the reasons therefore. E. Where an exemption from relocation assistance has been applied for based upon bankruptcy proceedings pursuant to Section 16.09.070(C)(2), the Planning Commission shall make one of the following findings based on the findings of the Hearing Officer: 1. That the application or project shall be exempt from relocation assistance obligations, in whole or in part, because a court of competent jurisdiction has determined in connection with a proceeding in bankruptcy that. the closure or cessation of use of said property as a mobilehome park is necessary, and because such court has taken further action which would prohibit or preclude payment of such benefits, whether in whole or in part. In rendering its decision, the Planning Commission shall have the power to eliminate or waive all or portions of any type cf benefit to the extent necessary to comply with the judgment, order or decree of the court. 2. That the applicant shall not be exempt from any relocation assistance obligations based upon any actions of a Court of Bankruptcy, because substantial evidence has not been shown that any such court has ordered the closure or cessation of use of said property as a mobilehome park, .cir that such court has prohibited or precluded the payment of any uch benefits, or both. F. No application for on amendment to the General Plan or Zoning Ordinance, or approval of a tentative map, or conditional use permit for change of use of a mobilehome park shall be approved unless and until the Planning Commission shall have determined that the conversion impact report complies with the requirements Attachment A http://www.codepublishing. com/CA/UnionCity/unioncity 16/unioncity1609.htm nTreorN 11/8/2005 rate / ul a of the chapter. The approval of an exemption from relocation assistance obligations shall have the effect of elimination of the requirement of such portion of the conversion impact report. If such conversion impact report is determined not to comply with the requirements of this chapter, the aforementioned application shall not be considered further unless and until the report is revised, an administrative hearing upon appropriate notice is conducted thereon, and the report is determined to be in compliance with the requirements of this chapter. (Ord. 344-90 § 2 (part), 1990) 16.09.090 Appeal to City Council. A. All decisions of the Planning Commission pursuant to this chapter are final and binding unless appealed to the City Council pursuant to provisions of the Union City Municipal Code. B. In conducting ttre hearing on any such appeal, the City Council shall be subject to all the provisions of this chapter on the same basis as the Planning Commission. Unless Council rules expressly otherwise, the hearing shall be de novo. Any such appeal shall be heard in conjunction with any public hearing on any application for a General Plan amendment, rezoning, tentative map, or other application for a change of use. Notwithstanding any other provision of this Code to the contrary, any tentative map, or other application for a change of use shall be subject to review by the City Council, in the event an appeal is filed pursuant to this section. C. If no appeal is filed pursuant to this section, the decision and findings of the Planning Commission shall be final and binding notwithstanding the fact the City Council is reviewing the General Plan amendment, rezoning, tentative map, or other application for a change in use. (Ord. 344-90 § 2 (part), 1990) 16.09.100 Obligations of applicant or mobilehome park owner after approval of conversion impact report. After the date of determination that the conversion impact report complies with the requirements of this chapter, the applicant shall undertake or be responsible for performance of the following obligations, except to the extent that the Planning Commission may have exempted the application therefrom pursuant to Section 16.09.080: A. Not later 4han thirty days from the date of such determination, the housing specialist or specialists shall make personal contact with each resident of the mobilehome park and commence consultations to determine the proper relocation assistance to be provided. The housing specialist or specialists shall give each resident and former resident eligible to receive relocation assistance written notice of his/her relocation assistance. B. Not Tess than thirty-five days prior to the date any eligible mobilehome owner is required to vacate the mobilehome park, any cash or monetary relocation assistance due by agreement or by plan shall be paid to such eligible mobilehome owner, or to any person, firm or corporation performing relocation related services for the resident, as the resident may direct. If the applicant elects to take title to a mobilehome pursuant to agreement or by plan, the mobilehome owner shall be required to submit to the applicant all documents necessary to transfer complete title and ownership of such mobilehome to the applicant, free and clear of all security interests, liens, or other encumbrances. C. Not more than six months from the date of such determination, any required appraisals of mobilehomes shall be completed. If any such appraisal is incomplete due to any act or omission of the park owner or applicant the otherwise required time for vacation of the mobilehome park by the residents affected by such delay shall be extended by ninety days. If any such appraisal is incomplete due to any act or omission of a mobilehome owner, the park owner or the applicant, as the case may be, shall give the owner of the mobilehome a written notice of such deficiency, which shall state that if the appraisal is not completed within thirty days of the notice, the appraisal of the park owner or applicant, as the case may be, shall govern. If the mobilehome owner does not complete such appraisal within such period, the required valuation of the mobilehome shall be based upon the appraisal of the park owner or applicant, as the case may be. In addition, not more than six months from the date of such determination, the applicant or park owner, as the case may be, shall enter into contracts with moving contractors necessary for the relocation of mobilehomes or personal property, or both. D. The date upon which any resident of the mobilehome park is required to vacate such park, or upon which any mobilehome owner is required to be removed from the mobilehome park shall be not less than six months from the die of notice of termination of tenancy and not less than thirty-five days from the date of payment of any required relocation benefits. E. If the park owner or applicant on such applications specifically requests that any of the time limitations required by this section be modified, the Hearing Officer shall consider any such modification and evidence http`//www.codepublishing.com CA/UnionCity/unioncity16/unioncity1609.htm Attachment A 11/8/2005 L.114t1�Va av•Vl !'age8or8 relating to the need therefore at the hearing on the conversion impact report. The Hearing Officer shall have the power to make modifications in such time limits, both in response to a request and on the Hearing Officer's own motion, in conjunction with any approval of a conversion impact report, as the Hearing Officer may deern just and reasonable. (Ord. 344-90 § 2 (part), 1990) 16.09.110 Payment of relocation assistance benefits —Prerequisite to issuance of building permit to redevelop park. No building permit shall be issued for the development of any real property which has been, or is being converted from a mobilehome park pursuant to this chapter unless and until the applicant or the owner of the property, as the case may be, who is responsible for payment of any required monetary ,relocation assistance, shall have filed with the Community Development Director a verified statement made under penalty of perjury that relocation assistance payments required pursuant to this chapter have been paid. Such statement shall specify in itemized form each payee, the amount paid, the date of payment, and the type of relocation or other assistance for which each such payment was made. (Ord. 344-90 § 2 (part), 1990) 16.09.120 Eminent domain. In the event there is an exercise of eminent domain by the City which has the effect of a change of use on one or more mobilehome sites, relocation assistance benefits shall be provided by the City to mobilehome owners pursuant to the provisions of this chapter or the law of eminent domain, whichever provides the maximum benefit. (Ord. 344-90 § 2 (part), 1990) 16.09.130 Administration fee. The City Council may by resolution establish reasonable fees to cover any costs incurred by the City in implementing this chapter, to be paid by the park owner or applicant subject to the provisions of this chapter, in accordance with the limitations of Section 65863.7(g) of the Government Code. (Ord. 344-90 § 2 (part), 1990) 16.09.140 Remedies for noncompliance. Any park owner or applicant who violates any rights of any mobilehome park resident established under this chapter shall be liable to the mobilehome park resident for the actual damages caused by such violation, plus costs and reasonable attorney's fees. The City may bring an action to enforce this section on behalf of any mobilehome park resident. (Ord. 344-90 § 2 (part), 1990) http://www. codepublishing.com/CA/UnionCity/unioncity 16/un ioncity 1609.htm Attachment A 11/8/2005 sec. 31- /04.8..Mobi.lenome park conversion. Page 1 of 1 CHAPTER 31. SUBDIVISIONS. CHAPTER 31. SUBDIVISIONS. Sec. 31-71D4.8. Mobilehonne park conversion. At the time of filing a tentative or parcel map for a subdivision to be created from the conversion of a mobilehome park to another use, the subdivider shall also file a report with the city on the impact of the conversion upon the displaced residents of the mobilehome park to be converted. In determining the impact of the conversion on displaced mobilehome park residents, the report shall address the availability of adequate replacement space in mobilehome parks. The subdivider shall make a copy of the report available to each resident of the mobilehome park at least fifteen days prior to the hearing on the map by the planning commission. The city council may require the subdivider to take steps to mitigate any adverse impact of the conversion on the ability of displaced rnobilehome park residents to find adequate space in a mobilehome park. The subdivider shall offer each existing tenant an option to purchase his or her condominium unit which is to be created by the conversion of the park into condominium interests or to continue residency as a tenant. If the tenant elects to continue residency as a tenant in a park created pursuant to Chapter 11 (commencing with Section 50780) of Part 2 of Division 31 of the Health and Safety Code, Section 31-704.9 shall be applicable. (Ord. No. 2184 (NCS).) Attachment B Page l of l httpJ/municipalcoues.lexi.snexis.conh/codes/salinas/ DATA/CHAP31/CHAPTER 31_SUBDIVISI... 11/8/2005 City of National City, California COUNCIL AGENDA STATEMENT iidEETING DATE November 15, 2005 26 AGENDA ITEM NO. (ITEM TITLE Notice of Decision — Planning Commission Approval of a Conditional Use Permit for a Wireless 1 Communications Facility on National City Middle School Property at 1701 D Avenue. (Applicant: NEXTEL Communications) (Case File CUP-2005-16) NYC — PREPARED BY Martin Reeder,336-4310 DEPARTMENT Planning EXPLANATION The school campus is 9.26 acres in size and is zoned Civic Institutional (IC -OS). The project is located in the northeast corner of the campus, adjacent to East 16th Street. There is little vegetation directly adjacent to the facility. However, there are several mature trees along both sides of 16th Street. The previous proposal for a wireless facility was submitted in 2004 on the same property at a different location. It was proposed on the opposite side of the campus adjacent to Otis Elementary School in the southeast corner of the property. The current location is more than 500 feet away from that location, and 260 feet away from the elementary school campus. The new location was chosen to address the community concerns regarding the impact to Otis Elementary School raised at the City Council hearing. The applicant proposes to install a 57-foot tall artificial broadleaf tree with 12 panel antennas and a 230 square foot equipment shelter designed to match the adjacent school buildings in texture and color. No Landscaping was originally proposed with this project. However, Planning staff recommended an additional live tree as a condition of the Planning Commission approval. The Planning Commission held a hearing on this item on October 17, 2005, where the applicant answered questions regarding site selection and school district support for the project. Commissioners expressed an interest in "obtaining additional support, in writing, from local school personnel, as well as from the school district, for future wireless projects. The Planning Commission voted to approve the Conditional Use Permit finding that the site is suitable (t,... for the proposed facility, that the facility would not have an adverse impact on adjacent or abutting properties, and that he facility would provide enhanced service which is a benefit to the community. EXT. CEnvironmental Review N/A Categorical Exemption MIS Approval Financial Statement N/A STAFF RECOMMENDATION Staff concurs with the decision of t filed. Approved By: Finance Director Account No. ning Commission and recommends that the Notice of Decision be BOARD / COMMISSION RECOMMENDATION The Planning Commission approved the Conditional Use Permit. Ayes: Carrillo, Alvarado, Baca, Flores, Martinelli, Graham. Nays: Pruitt Absent: Reynolds ATTACHMENTS ( Listed Below ) 1. Planning Commission Resolution No. 28-2005 2. Location Map Resolution No. 3. Photo simulations & site photos 4. Reduced site plan, elevations, details A-200 (Rev. 7/03) RESOLUTION NO. 28-2005 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA, APPROVING A CONDITIONAL USE PERMIT FOR A WIRELESS COMMUNICATIONS FACILITY ON NATIONAL CITY MIDDLE SCHOOL PROPERTY AT 1701 D AVENUE APPLICANT: NEXTEL COMMUNICATIONS CASE FILE NO. CUP-2005-16 WHEREAS, the Planning Commission of the City of National City considered a Conditional Use Permit application for a wireless communications facility on National City Middle School property at 1701 D Avenue at a duly advertised public hearing held on October 17, 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-2005-16 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 October 17, 2005, support the following findings: 1. That the site for the proposed use is adequate in size and shape, since the small lease area (752 square feet) will have little effect on use of the 9.26 acre school property, and will not affect existing school uses. 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 the unmanned wireless communications facility, requires only one to two visits each month for routine maintenance, which can easily be accommodated by the adjacent streets. 3. That the proposed use will not have an adverse effect upon adjacent or abutting properties, since the 57-foot artificial broadleaf tree will adequately screen the twelve panel antennas, and since the lower grade of the site will partially screen the equipment shelter from adjacent properties. 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 National City Middle School. Except as required by conditions of approval, all plans submitted for permits associated with the project shall conform with Exhibit A, Case File No. CUP-2005-16, dated 7/26/2005. Any additional antennas must substantially conform with the design for installation shown on these plans. 2. All wiring and cables between the equipment shelter, artificial broadleaf tree and antennas, and any associated communications or wiring junction boxes shall be placed underground, inside the artificial tree or within the equipment shelter. External GPS antennas shall be painted to match the finish of the equipment shelter. 3. The permittee 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 and the complaining user. This condition in no way obligates the City to approve any co -location proposal if it is determined by the City not to be desirable in a specific case. 4. Any antennas, equipment or facilities that are abandoned, decommissioned, or become obsolete shall be removed. 5. A detailed landscape and irrigation plan shall be submitted depicting proposed planting of a minimum of one broadleaf tree in the area immediately adjacent the proposed equipment building. Required trees, which shall be a similar species to nearby broadleaf trees, shall have a minimum height of 25 to 30 feet at time of planting dependant on growth rate subject to review and approval by the Planning Director. Required landscaping and irrigation shall be installed concurrently with the installation of the proposed artificial broadleaf tree, and shall be continuously maintained for the duration of this Conditional Use Permit. 6. 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. 7. Television cable companies shall be notified a minimum of 48 hours prior to filling of cable trenches. 8. 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. 9. A permit shall be obtained from the Public Works Department for all improvement work within the public right-of-way, and any grading construction on private property. 10. 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. 11. 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 5:00 p.m. on the day of that City Council meeting. The City Council may, at that meeting, appeal the decision of the Planning Commission and set the matter for public hearing. CERTIFICATION: This certifies that the Resolution was adopted by the Planning Commission at their meeting of November 7, 2005, by the following vote: AYES: Carrillo, Alvarado, Baca, Martinelli NAYS: Pruitt ABSENT: Flores, Graham ABSTAIN: Reynolds Kim Park NATIONAL CITY MIDDLE SCHOOL Approximate location of proposed facilty ZONE BOUNDARY — Otis Elementary School LOCATION MAP Conditional Use Permit for a wireless communications facility at 1701 D Avenue. CUP-2005-16 NATIONAL .CITY PLANNING DRN. DATF ' 9/15/05 INITIAL HEARING: 10/3/05 16 2005 12:50 Neff EL LOCATION wipersvoorawrieg.00 EXISTING CA-7487-B MAEHJSSAY - NATIONAL CITY MIDDLE SCHOOL PROPOSED - VIEW LE:WINO ROUTH FROM ACROSS'S 7 57-74 ISTRECT. 1701 0 AVE. NATIONAL CITY. CA 9 1 950 MSA Anchhacsurs, A Mottniass .411 • Sw. Pop . Sp 1,mets 111.0•61.4.1.41a 00.111. NM As79r ... AA90 ........... • • Site Photos — Wireless Facility at N.C. Middle School CUP-2005-16 Project location looking East Project location looking North Project location looking Southeast 16th Street looking West NATIONAL CITY PG DEPT. Nextel of California, Inc. dba NEXTEL Communications SPECIALIZED vAOEILI ADR0 ACIL. Y SITE NAME: "MABUHAY (NATIONAL CITY MIDDLE SCHOOL)" EEO, SAN D1E30 NEXTEL OFFICE TAKE 1-15 FYN SOUTH TOUT✓. FHT CA MILE OF CARS NAY FAG, 1 TURN LEFT ON NATIONA'- CITY BLVD. VAN ND TIGHT ON 16O-: 16 R• ) AT 'S&0 ON C AVENUE AND THE SHE IS ON THE R'GHT AT NP.TDNAL GRY MIDDLE SCHOOL. DIRECTIONS A_L. WSRK AND MATERIAL_ SHALL BE PERFORMED .0 iNSEALLED IN ACCORDANCE WITH THE CURRENT EDITIONS OF THE FO'7LJNI00 CODES 0 ADOPTED 9Y THE LOCAL GOVE21'IIRG AUTHORITIES_ NOTHING IN THE. PLANS IS TO ZE CONSTRUED TO EERMIT WORN NOT CONFORMING TC --HESE :;DOES. CALIFORNIA BJ LO'I.G COG£ ONCL TITLES 26 & 25; 201, UNIEORI+ GE_TIANIGAL CO3E '99T 3 ANSI ERA- 222-F LITE SAFETY '.CBE 4FPA-10I-1390 11NIF0RP PLUMBING CODE '927 5. NATIONAL. ELECTRIC CODE 199E 5_ 090/COUNTY ORDINANCES CODE COMPLIANCE SITE NUMBER: CA-7481-B THIS PROJECT CONSISTS OF THE CONSTRUCTION OF AN UNMANNED TELECOMMUNICATIONS FACILITY TO INCLUDE THE FOLLOWING: INSTALLATION OF A (N) 11'-62x20'-0' EQUIPMENT BUILDING W/ SMOOTH STUCCO FINISH & PUNTED TO MATCH SCHOOL; INSTALLATION OF A (N) 5]'-0` HIGH "BROADLEAF MONO -TREE", • INSTALLATION OF (12) (N) 6.-0- PANEL ANTENNAS, MOUNTED ON THE (N) 57'-0' MONO -TREE, (4) PER SECTOR. (3) SECTORS'. • INSTALLATION OF (N) ELECTRICAL & TELEPHONE SERVICE: INSTALLATION OF (N) COAX CABLE ATTACHED r0 (N) CABLE SUPPORT BRIDGE, FROM SHELTER TO PNIENNAS; OTHER TELECOMMUNICATIONS FACILITIES ON 511E: NONE PROJECT DESCRIPTION APPI ICANT/IFSSFF- NEX0EL COMMUNICATIONS 5761 COPLEY DRIVE, SUITE 100 SAN DIEGO, CA 92111 CONTACT: STEPHANIE WHITLOCK PHONE: 780-250-4361 PROPFRTY/OWNER INFORMATION - OWNER: SWEETWATER UNION HIGH SCHOOL ADDRESS: 1130 FIFTH AVENUE CHUU VISTA, CA 91911 CONTACT: JIM CLAW640901 619-585-4490 A.P.N.: 560-091-30 CURRENT ZONING: INSTIIUTIONAI. CMC-OPEN SPACE PROJECT INFORMATION: GOVERNING JURISDICTION' CITY OF NATIONA'- CITY AREA OF CONSTRUCTION: 604 O OCCUPANCY TYPE: 4 CONSTRUCTION TYPE: V-N ZONING APPLICATION N: -- HANDICAP REQUIREMENTS: FACILITY IS UNMANNED AND NOT FOR HL MAN HABITATION, HANDICAPPED ACCESS REOUIREMENIS NOT REQUIRED, IN ACCORDANCE WITH CALIFORNIA STATE AOMINISTRATIVE CODE, PART 2. TILE 24. SECTION 11058.3.42, EXCEPTION 1. PROJECT SUMMARY ARCHIT0CT' USA ARCHITECTURE & PLANNING, INC. 6920 MIRAMAR RO., SUITE 202 SAN DIECO, CA 92104 CONTACT: MICHAEL SHEWBRIDGE PHONE: 949-251-1177 CONTACT: JOE HU55EY PHONE: 650-530-0578 SURVEYOR: GALVA. SURVEYING INC. 100 BUSINESS CENTER DRIVE CORONA, CA 92680-1762 CONTACT: ARMANDO DUPONT PHONE: 909-280-9960 SITF ACOI IISTION/CONSTRUCTICN' NEXTEL COMMUNICATIONS 5761 COPLEY DRIVE, SUITE 100 SAN DIEGO, CA 92111 LEASING: STEPHANIE WHITLOCK, 760-250-4361 ZONING: STEPHANIE WHITLOCK, 760-250-4361 CONS': LANDIS SCHMEHR, 658-950-4276 CONSULTANT TEAM SHT N0. DESCRIPTION 111 Al A2 A3 L51 TOLE SHEET SITE PUN LEASE AREA PLAN, ANTENNA PUN & DETAIL NORTH, EAST, SOUTH & WEST ELEVATIONS TOPOGRAPHIC SURVEY SHEET INDEX THE FOLLOWING PARTIES HEREBY APPROVE AN0 ACCEPT THESE DOCUMENTS MD NBHOmZE THE CONTRACTOR TO PROCEED WITH THE CONSTRUCTION DESCRIBED HEREIN. ALL CONSTRUCTION DOCUMENTS ARE SUBJECT TO REVIEW BY TFE LOCAL BUILDING DEPARTMENT AND ANY CHANCES AND MODIFICATIONS THEY MAY IMPOSE. PRINT NAME SIGNATURE DATE LEASING ZONING RF CONSTRUCTION INTER CONNECT LESSOR APPROVAL MSA AmwfmA L.6941 v. HIyl4495C2 0121 ,tl: 71.69 9Cspl:l 9H.BS1331.0T Fs 1R1 VII.IK Nextel of Colilornia, Inc. dba NEXTEL Commummbons 57E1 COPLEY OWE, STE. IX SAN DIEGO. Ch 921,1 PHONE: (1558)65D-4200 FAX: (858)650-4202 'MABUIOAY (NATIONAL CRY MIDDLE SCHOOL)' CA.74B1-8 1701 0 AVENUE NATIONAL CITY, CA 91950 SAN DIEGO COUNTY !PROJECT N0. 0A-7461-6 !DRAWN BY JWH CHECKED BY MiS NO OAIE ISSUE ISSUED FOI, 201.K SMUT. WFR 111L£ TITLE SHEET hz1 SUBMIRN: 12na sonar, }URA MCA-i461-B sEssuc, -. _ 1 6 TH STREET ... . SETBACK (E) MUSIC BLDG. 41 772) (E) ALI2Ii0RIUM 4) 2332 (E) CERA,Y a4 1096E (`) Ca-ETE41a A)) 1970 iETBnCH — , scraacR. _.. (E) SHIPS (E) BBY'S SHOWER/LOCKERS 4)) 7738 (E) GYMNASIUM 400814 (E) GIRL'S SHOWER/LOCKERS AN 2131 �)(E) CHNN LINK GATE MABUHAY (NATIONAL CITY MIDDLE SCHOOL) �- (E) TURF EIELO (E) CL SSRODNS AY 7755 0 iESiRM-2f (E) DOMESTIC SCIENCE BLDG. AM 1970 (E) CLASSROOMS '...' (C)....... AN 30814 ' RELO 1 18TH STREET lI (E) SECURITY RESIDENCE (E) CHAIN LINK CATE, (N) NE%IEL SITE ACCESS ROUTE l e P N : COURT , (E) COURT CBALL FI (E) BASKETBALL, 1 COURT 1 . (EJ / STEEL I RAMP (E) PUBLIC UTILITIES ' EASEMENT E E AREA LPN ON SHT. A2 m lan.wc wx v uwx Y1F LN (E) .._._. _.. (E) TENNIS TENNIS (E) LIN (E) TURF i1EL0 (E) PUBLIC +. U11lITIES ES EASENENT (E) 10'-0' PUBLIC VilUTSES EASEMENT - (E)UTILe0' 0' PUBLIC �� () CHAIN RES EASEMENT LIN FENCE I � , 0) SETBACK �1 '.'-:PROPERTY LINE 164.4C (E)� HANDBALL��j COURT (COE)MPOUND %0RMR S _D SETBACK —(E) RUNNING WALL SITE PLAN LEGEND — OH CySITE PLAN P ROPERTY LINE EASOMEN0/SETBACK JNE O VERHEAD !mutt EXISTING CHAIN LINK FENCE RUNNING WALE MSA AfN ANAMneg, 69101tiNwrwLSLMe3C Sn4xACN9il21 MO AB. L1trw.9sn Yu.4 INA Hostel of Ca6lornio, Inc dba NEX%Q. Communications 5761 COP(EY DRIVE, STE. 100 SAN DIEGO. 00 92111 PHONE: (858)650-420C FAX (858)650-4202 'MABUHAY (NATIONAL CITE MIDDLE SCHOOL)' CA-Ta)1-B 1701 D AVENUE_ NATIONAL CITY, CA91950 SMI DIEGO COUNTY IPROJEC' NO_ „a-748I-a !DRAWN BY JWH CHECKED BY 4JS NO DATE ISSUE mace ,on zo..N SHEET TITLE SITE PLAN SHEET NUNBER Al 9t 5484004E 12nd SUBMITTAL: awl-0 NI) PuTENNN mouNTING ARMS y'*9_R & 5'=EfO Bc 0.ERMINED FARRIER 4 UPiv'IIFYTURE3 TYP_ ROB 0 THE PROPOSED InONOPOLE T Tow. STEUCTUR- SHALL CONS ST GF SINET( 1) BRANCHES AND FouADE. \ \ \ llirl 1. BOTTC'I 20H D" THE 'J= Or, FOLIAGE CANTENNA MOUNTING DETAIL (N) 57'-0' BROADLEAF MONOTREE, SEE DETAIL 2 (N) 6-0- PANEL ANTENNAS, (TYPICAL OF 12), SEE DETAIL 2 (E) SIDEWALK 1.120550E 757R MINIMA' MINIM In("2(13Irdr184134 VIE 33'.: (E) SETBACK (N) 3 -B"J CHAIN LINK CATE GOWNTIILT MOUNTINS. KIT. (TYR. ON BOTH ANTENNAS; (N) NEXTEL PANEL ANTENNA (N) NFYTEL m -_^ PAnfL AMENNA MOUNTING PIPE. \ CO.CABLES TO RUN THROUC» TOWER ENTRY PORT ',FAUX BRANCHES NOT SHOWN IN AREA OF ANTENNA. ACTUAL LOCATION & NUMBER OF BRANCHES TO BE DETERMINED BY CARRIER & MANUFACTURER OLP. 10 FENCE LEASE AREA & NENTEL ENCLOSURE CLR. TO MONOTRE1 SHELTER r(6) SHELTER I R00F OUTLINE I sal --(N)TE'INCPSA ( AN(6) GS ANTWNPA +x i// i iiii (N) NEXTEL EQUIPMENT / SHELTER. SMOOTH STUCCO � / FINISH & PAINT TO MATCH . P 'SCHOOL SEE MFR. CIO. F0R�� SP CIfICATICN0 & DE?NLS /A' X �''�////// /ii ii%/��i (METER W/ / /— WEATHERHEOC X (N) TELCL CABINET w/ WEATHERHEAD 10 (N) S '1 EB1 POWER/IELCO P.D.C. Y Z.---(N) WEED BARRIER & GRAVEL AROCND SHELTER (N) U.G. POWER & TELCO 1OLEASE AREA PLAN T I/v.r-a• (N) 6-0'H NEXTEL PANEL ANTENNA MOUNTED TO )N) MONOTREE, PAINTED TO MATCH MONOTREE, (4) PER SECTOR, (3) SECTORS, (12) TOTAL (N) ANTENNA MANUFACTURER'S M REWIRED. DRAWINGS. (PEP) 2 . SECTOR (3O' RAD CENTER) (N) 5'-0- 5'-0' CONCRETE STOOP J50-, SECTOR 'A', (JO' RAD CENTER) ,a m OANTENNA PLAN (N) 51'-D3 HIGH 6RNAN,AF MONOTREE R) Nexlel of Callomio, Inc. dba NEXTEL Communications 5761 COPLEY DRIP, SUE. IGO SAN DIEGO, CA 9211, PHONE: (B58)650-4200 FAX. (558)650-e202 'MAB)HAY (NATIONAL CITY MIDDLE SCHDOLO CA-TA81.B 1701 D AVENUE NATIONAL CITY. CA 91950 SAN DIEGO COUNTY 'PROJECT NO. CA-7401-13 1 'DRAWN BY Jw3 CHECKED BY MJS N0 DATE ISSUE Laud FOR $0.1111E SHEET TIRE LEASE AREA PLAN, ANTENNA PLAN & DETAIL SHEET NUMBE A2 1st SUBMITA_: 2. SUBMITTAL( 'NSA /CA-]181-B (N) 6'-0'H PANEL AIFEN/1AS. SECTOR 2, (TYP. OF 12) (NJ 6'-0'M PANE ANTENNAS. SECTORS d 3. (TAP. OF 12 (N) 57'-0- BROADL_ MONDTRFM. (N) 6'-0' CRAIN LINK FENCE (E) 3 A U11LIPr TOL (5) OPS ANTENNA, (`?P. 0f 2) (E) 5'-0 Nt CHAIN LINK FENCE 1.0. (E) 4.-0N3 CMU RETAINING WALL PROPER, LINE (E) SIDEWALK -� (E) STREET �OW1 (N) ELEC. M 9 SOUTH ELEVATION AUM:1n.F_P (N) CABLE SUPPORT BRIDGE r(N) NEXPEL EOUIPMENI SHELTER. SMOOTH STUCCO FINISH h PAINT TO MATCH SCHOOL, SEE MFR. 0WC. / FOR SPECIFICATIONS h DETAILS PROPERTY LINE— N) TELCO CABINET (N) 57'-O. BROADLEAF MONO1REE (N) 6'-0"H PANEL ANTENNAS. SECTOR 2, (TAP. OF 12) (N) 6'-OH PANEL ANTEHN SECTORS 1 h 3,(hP. OF (N) NE%TEL ECUIPMENI SHELTER, SMOOTH STUCCO FINISH k PAINT TO MATCH SCHOOL. SEE NFR. DWG. FOR SPECIFICATIONS 4 DETAILS ,'(N) AWNING (N) 0-0' CHAIN LINK FENCE W/ 3'-O. GATT OWEST ELEVATION sWC pe"". r_o d 0 (N) 6'-0'H PANEL ANTENNAS. SECTOR 2. (hP. OF 12) (N) 6'-0'H PANEL • ANTENNAS, SECTORS 1 h 3.(TYP. OF 12) (N) NE%1EL EOUIPMENI SHELTER, SMOOTH STUCCO FINISH k PAINT TO MATCH SCHOOL, SEE Mf<. DWG. FOR SPECIFICATIONS .6 DETAILS (E) 0'-0'H3 CNA LINK FENCE PROPERTY (N) OPy ANTENNA ONORTH ELEVATION (N) 6'-0'H PANEL ANTENNAS, SECTOR 2. (hP OF 12) CHAIN LINK FENCE a (E)GRADE ELEV. - II-w NOTE'. PORTION Of THE (E) FENCE NOT SHOWN FOR CLARITY. OEAST ELEVATION AWL: 1n+1'.Y (N) 57'-0' BROADLEAF MONOTONE (N) B-0 H PANEL ANTENNAS. SECTORS 1 k 3.(IYP. DF 12) (E) 29'-0"H3 UTILITY POLE SMOOTH STUCCOf INISH .EPA TO MATCH SCHOOL. SEE MFR. OYIC. FOR SPECIFICATIONS k DETAINS (N) CAPS ANTENNA (IYP. OF 2) (N) 6' D. CHAIN LINK FENCE W/ (E) 6' 0'H1 CHAIN LINK FENCE TO (E) 1'-0113 GNU RETAINING WALL (E) PROPERTY LINE (E) SIDEWALK (E) STREET AldievuehlYwy NpLYAMR9iSW9 SnRg14 Us 31 19.16151001 Es.3i5L1YT N'ea5Pl of C0Y1ornu, Inc. AIw AEX'EL CDmmu9iCOLg06 5761 COPLEY DRME, STE. IOD SW DIEGO, FA 92111 PHONE, (858)650-4200 FAX: (856)650-4202 9.MBUHAY (NATIONAL CRY MIDOt.E Afsw1.1 r CA-7161-0 1101 D AVEM1E NATIONAL CITY, CA 91060 SAN DIEGO COMP/ (PROJECT NO. G-7161-8 'DRAWN BY J1N :CHECKED B1' MIS 0 DATE owls/PI m/H/Os n/11/ol P,Vos 01/1a/os ISSUE N-6C(D Fq ME -AN -x04oF.L. IINt soon,. F. mum RAPER FDA RWN NORTH, EAST, SOUTH & WE ELEVATIONS SHEET NUMBER A3 IAA SUBWRAL 2n0 SUBMITTAL: IRA-7N61-0 J 11)10 REMIT 1._ q ay,. 110AI. I)RSCRIPTTON w: xc5xa0 TO xliA rssrro.rzDx „Al,A[q:.uamni, Ewell 0 sox OM.. M li Eu'tP.I P.O AMS 9A>u9sltt AA.t.m 15x .51,1 o'i"t]A115I f X.MpD ti `1 Y.CA. /IXWYXS ID Ai Y V Mplq XO 11e', 4 15150iIVIIN161rg..0, 86Ilt1''SN 111O14Id '51'3e13, ni or 4 xYllx, ARC 14 DP MOFq Ml l}t 103 S MO 16 A N4rtn IAI w auwo A w CCipi a or SAN: Aw AQia 1. 21 w v. 1 mass -!r(YD Amac, OISifWxtt UYx [Ski X:,SE8 RHPiTG pxQ6 .1.100SS(1 RS PARCF!I. N'(1 I4IS1:NENT3 HrF➢,1W T>, a_mniEDwe 13 91. n,x..wJrl un uu lwrc r:ass vtwm. Oil. 7. A,. a No -Rusin xa ate.. s. Ei txmnc a -mil .x Error..,P roorr orrors row,:,rgs.arrw rt. on.r. .orzua. xo. A.15n5•. �,. RLa:m xra[W 1 ,aT1lvY Ga. +.rt1P,> vvx..>9 r.arvLe, av9, RrES Nxaas a[tmA9:nu ur aarxuRxl A (:CY.:SS l:ISLMI?NT {_I xrtE>N.T4 a. A.1 eWMr q ua:w[ .xo f6mti 5 trM e(9 x4' q Rx 01: 11651or g 1Kw*S 51.1. a:8 K'4rW :F81Ki1TEN ACK.011LA To OLE MO 5v lk1861SION1 0am[Atr1[61 . urvM.L r{wgrtgr,A51., WTNI !K rEr[El S. 5inii Mon., i.ou[xOx4 AI A£ 6N4RX(wR0.4t1w Q [ F8IM AND ISM 5.107.9.011 [tW q SwKr xo. ixi:. II11 8 Y14 COOK xaSiff.014 9f CDR.( A s A 5111..YI544.. 55152 51IRt AD1i 5IT V_ N.00 1110 Pi. A�OW0 MYRIAM TO a5 LEASE .111I'A n'uv:59nnrux YleA1Rx YL0114 ru WM1iT ktrpi 1110180 RR4X1[41 I61518 ire Ng "hYQxC 115'M16061/ 9IGAMX6Ai lfir x4r6 rt5116 Q .@. AN NO in WASlY Y[�w'Si A XAXon r/ 4 XAm{ ILgRA.E T uAi tt t Or/ OF /4110101. .ria .EE[.n EtewryvA[Am[o aXaVYa>Htl3'a&n a lai4f: Arn or,v118A589 Famf r.:xS uir5n; nm r: rravq x1]n5'dL,1 %Fa. Nxt[ 51]Y'1P[. 11ll 1T ID n[ nxlAVr'M'iNF. ✓nAAru :5e51 w. ri GFOGR.91'IIIC COORU1N1TESAl' PROPOSED hMONOTRFII rxAce) /Irxl£2- eI21, MAL,i ;AM. iwnwK O ITIS OF SURVEY kial of, HAWS Of ////4RINGS m. :ri1ry q Ma:wl e. Ix1wl BENCH 0IA1:11, .x,1r .x nz u`Ana-vllw ixwa! Noo Not EIISPIG Boundary Detail sari r.1m r x„mmE Isrysrx5rr 1/IR S7FLD .np moo MUTT RAx 1A r von erom GRAPNICSCILE 30 t5 au PEP.T Z .1r IPCMI1 moat Overall Site Detail so. 1,5.5 PROPOSED 4,e1v' NFR16 ✓A. RPV ♦r. n+w>� ea- m1I w �p5 ry la 7 Bo91 L kmalxola PfJ tor or roar ros u �e�v[ e ¢vvx6 w ive p mr10xx n eToe or "ixaiill. um *row Hertel of California, Inc. Mao ILCIBI EL Communications 5761 COPLEY DRIVE, STE. 100 SAN DIEGO, CA 92111 PHONE: (658)650-4200 FAX: (858)650-4202 -MABYHAY' CA-74B1-B 1701 D AVENUE NATIONAL QTY. CA 91950 COUNTY OF SAN DIEGO CAL WIWI SUNVEVI teO,, Aar IMICE (D. <AMlb • IDN.MN 8r 3AYf2BC IDE= BY ADD NO OrATE 15Si ENEET 1R1 TOPOGRAPHICi SURVEY II 111 SLAW, �sDa smart,: IYST (fA-1881-8 Northeast corner of 16th Street and F Avenue 16th Street looking West ITEM #27 11/15/05 Verbal Report and Discussion Regarding Metropolitan Transit System's Proposed Regional Bus Routes - Vice Mayor Morrison — ITEM #28 11/15/05 Verbal Report on Fiscal Situation/Budget (City Manager) EETING DATE City of National City, California COUNCIL AGENDA STATEMENT November 15, 2005 AGENDA ITEM NO. 29 ITEM TITLE Resolution waiving the bid process, and accepting a proposal from SSD Systems, for the provision and installation of Public Safety Cameras on Roosevelt Avenue, in the amount of $60,550.96 ($53,000 to be paid from grant funds, balance from MIS). PREPARED BY Brenda E. �� Hodges, C.P.M. ;gq''d�r"'"TMENT Hodges, �AQPurchasing Dept. x4570 Y EXPLANATION Bernard MIS Department x4373 Sgt. Lanny Roark % t Police Department x4524 See attached EXT. Environmental Review x N/A 1 MIS Approval Financial Statement $53,000 is available from the EBMJA grant. MIS will cover the $7568.96 balance from contingency funds. STAFF RECOMMENDATION Staff recommends that the contract be awarded to SSD Systems, and that authority be given to the Purchasing Agent to issue the resulting purchase order, and direction given to staff to submit appropriate grant paperwork. Approved By: Finance .' "tor EBMJA Grant: $53,000.00 290- 501-506 MIS: $ 7,568.96 630-4-000-710 Account No. BOARD / COMMISSION RECOMMENDATION not applicable ATTACHMENTS ( Listed Below ) Resolution No. 1) Explanation (pg 1-2) 4) Service Pgmt/Addendum/Insurance (pg C1-C15) 2) Request for Proposal "Exhibit 'A"' (pg A1-A19) 5) Resolution 3) Bid Quotation/Pricing "Exhibit'B"' (pg B1-B5) A-200 (Rev. 7/03) RESOLUTION NO. 2005 — 250 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY WAIVING THE BIDDING PROCESS AND ACCEPTING A PROPOSAL FROM SSD SYSTEMS IN THE AMOUNT OF $60,550.96 FOR THE PROVISION AND INSTALLATION OF PUBLIC SAFETY CAMERAS ON ROOSEVELT AVENUE, BETWEEN 4TH AND 8TH STREETS WHEREAS, a report was presented and approved at the July 19, 2005 City Council meeting regarding the Police Department's intention to spend the Edward Byrne Memorial Justice Assistance Grant, which was received from the U.S. Department of Justice in the amount of $53,000, for the purchase and installation of closed circuit television cameras throughout the City to record activity around critical infrastructure points and in public areas with the purpose of lowering crime rates through deterrence, detection and prevention, specifically on Roosevelt Avenue; and WHEREAS, public safety cameras will be placed at critical points along Roosevelt Avenue, between 4th and 8th Streets, to provide a clear visual deterrent against prostitution and other crimes, and provide law enforcement with the means to observe and record such criminal activity for assessment and prosecution; WHEREAS, SSD Systems was selected through the City's low bid process to install the camera security system at the new library, and successfully integrated the system into the existing system at the Civic Center; and WHEREAS, on October 18, 2005, the City Council adopted Resolution No. 2005- 226 authorizing the standardized purchase of a security camera system from SSD Systems for the Police Department that will also be integrated into the security system at the Civic Center. Therefore, it is in the City's best interest to contract with SSD Systems for the installation of a public safety camera system on Roosevelt Avenue due to its recent familiarity with the existing system, and because it has already gone through the bidding process for the installation of security camera systems at the Library and Police Department; and WHEREAS, grant funds in the amount of $53,000, and $7,568.96 from MIS Provision for Contingency Account No. 630-415-000-710, are available for the purchase of the public safety camera system in the total amount of $60,550.96, and WHEREAS, Section 2.60.220 of the National City Municipal Code provides that the requirements of formal bidding may be disposed with when the City Council determines that due to special circumstances, it is in the City's best interest to purchase a commodity or enter into a contract without compliance with the bidding procedure, or when a particular type or make of commodity or equipment has been standardized by the City by order of the City Manager or City Council. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby finds that special circumstances exist and authorizes the Purchasing Agent to waive the bidding process, and authorizes the Mayor to execute an agreement with SSD Systems in the amount of $60,550.96 for the provision and installation of a public safety camera system on Roosevelt Avenue, between 4th and 8th Streets. Said Agreement in on file in the office of the City Clerk. --- Signature Page to Follow -- Resolution No. 2005 — 250 November 15, 2005 Page 2 PASSED and ADOPTED this 15th day of November, 2005. ATTEST: Michael R. Della, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney Nick Inzunza, Mayor EXPLANATION PUBLIC SAFETY CAMERA (CCTV) PROJECT Background 1. At the Council meeting of July 19, 2005, the City Council was notified that the City had received the Edward Byrne Memorial Justice Assistance (EBMJA) Grant from the U.S. Department of Justice, in the amount of $53,000. This was conveyed via a memo to City Manager Zapata dated June 15, 2005. 2. Also at the Council meeting of July 19, 2005, Lt. Craig Boegler presented a report regarding the Police Department's intention to spend the EBMJA grant money on the purchase and installation of closed circuit television cameras (CCTV) throughout the City, to enhance public safety. This was referenced as the "Camera Pilot Project", specifically for Roosevelt Avenue. Council moved to approve staffs recommendation. 3. At the Council meeting of October 18, 2005, via Resolution #2005-226, Council authorized a sole source procurement of security cameras from SSD Systems to be installed in the Police Department. This was funded by the Reimbursable Fiscal Year 2004 State Homeland Security Grant Program and the Police Department's Asset Forfeiture funds. Sole source authority was granted, since SSD Systems installed the security system at the new library, and the systems needed to be compatible. 4. City staff needs to proceed with the purchase and installation of the CCTV 'Camera Pilot Project' for Roosevelt Avenue, approved on July 19, 2005. Recommendation It is requested, once again, that a 'sole source' determination be made, and that this contract be awarded to SSD Systems as well, based on the need to expand on the system being installed at the Police Department (item #3 above). All security cameras and systems will eventually need to be tied together and monitoring must be possible from any City building deemed appropriate. Expansion of this back -end system via concurrent installation by the same vendor, will significantly reduce potential costs in equipment, wiring and labor. Staff Research The MIS Department, in conjunction with a consultant from Global CTI Group, prepared the Request for Proposal/Scope of Work. MIS and the consultant visited the L.A. County Sheriffs Department, where the same equipment is currently being used. The Purchasing Agent, conducted price comparisons on the list of equipment involved to ensure that the City was getting a fair price; issued the City's Standard Service Agreement and collected/verified applicable insurance coverage and documents. The Police Department determined camera locations based on criminal activities along Roosevelt Boulevard. MIS, the consultant, and the vendor did a site survey for final measurements; and to confirm the scope of work. The Engineering Department is consulting with SDG&E regarding the use of their power poles for mounting cameras; and prepared the technical drawings of fiber optic and traffic junction interconnect plans. The consultant will oversee the installation and implementation. SSD Systems will conduct staff training. Authority Purchasing Ordinance #1480, section 12, subsection a(3), allows the bid process to be waived when the commodity being purchased is required to match or be compatible with other equipment presently on hand, and the purchase is made from the supplier who originally supplied the equipment. AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND SSD SYSTEMS THIS AGREEMENT is entered into this 15th day of November, 2005, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and SSD Systems (the "CONTRACTOR"). RECITALS WHEREAS, the CITY desires to employ a CONTRACTOR to provide and install Public Safety Cameras in accordance with the Request for Proposal (Exhibit 'A'); and SSD System's cost proposal (Exhibit'B'). WHEREAS, the CITY has determined that the CONTRACTOR is a 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 Exhibits "A & B". 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 Exhibits "A & B" 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 C.l Revised April 200E corresponding reduction or increase in the compensation associated with said change in services, not to exceed a factor of 25% from the base amount. 3. PROJECT COORDINATION AND SUPERVISION. Bernard Yeo, Manager of Information Systems, 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. Stuart Starrs 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 & B" shall not exceed the schedule given in Exhibit "A & B" (the Base amount) without prior written authorization from the Purchasing Agent. 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 & B" 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 as follows: a) Work to be started within 20 Days days of receipt of notice to proceed b) Work to be completed within 30 Days days of start date. 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 C2 Revised April 2005 unreasonably withheld. The CONTRACTOR shall, upon request of the CITY, execute any further document(s) necessary to further effectuate this waiver and disclaimer. The CONTRACTOR agrees that the CITY may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium or method utilize the CONTRACTOR'S written work product for the CITY's purposes, and the CONTRACTOR expressly waives and disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to intellectual property and artistic works. Any modification or reuse by the CITY of documents, drawings or specifications prepared by the CONTRACTOR shall relieve the CONTRACTOR from liability under Section 14 but only with respect to the effect of the modification or reuse by the CITY, or for any liability to the CITY should the documents be used by the CITY for some project other than what was expressly agreed upon within the Scope of 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. AU 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. Revised April 2005 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 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, O./4 Revised April 2005 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 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, 05 Revised April 2005 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, 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 Toss 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. H. Any aggregate insurance limits must apply solely to this Agree- I. Insurance shall be written with only Califomia admitted companies which hold a current policy holder's alphabetic and financial size category rating of not Tess 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. ment. Cj 6 Revised April 2005 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 judgment or award. Attorney's fees to the prevailing party if other than the CITY shall, in addition, be limited to the amount of attomey'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 07 Revised April 2005 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 ovemight 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 Califomia) 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: To the CONTRACTOR: Chris Zapata, City Manager City of National City 1243 National City Boulevard National City, CA 91950-4301 Carl Donoho SSD Systems 11031 Via Frontera Suite B Rancho Bernardo, 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 8 Revised April 2005 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. ❑ 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. 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. Revised April 2005 H. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Califomia. 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 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 By: By: C.4 " Nick Inzunza, Mayor (Name) i+ccnu,7iir7MP" APPROVED AS TO FORM: George H. Eiser, III City Attorney SSD SYSTEMS (Corporation — signature of two corporate officers)) (Partnership — one signature) (Sole proprietor;hip — one signature) (Title) By: 41/1/Qi/In (Name) C.F. ©. (Title) Revised April 2005 CITY OF NATIONAL CITY PURCHASING DEPARTMENT 2100 HOOVER AVENUE, NATIONAL CITY, CA. 91950 Ph (619) 336-4570 Fx (619)336-4597 ADDENDUM #1 for: Public Safety Camera Project RFP Titled: CCTV System Pilot Project, October 2005 The enclosed notice has been sent to you by fax by and email. Receipt of either constitutes service of notice. The specifications/scope of work shall be revised by additions to, deletions from and changes as stated in this addendum. Insofar as the original specifications are in variance with this addendum, this addendum shall govern: Prevailing Wages. The Contractor shall install the equipment in accordance with all applicable federal and state labor standards, including, but not limited to, the "Prevailing Wage Laws" defined below. The Contractor is aware of Sections 33423 — 33426 of the California Health and Safety Code and Sections 1770 — 1780 of the California Labor Code and is aware of the requirements of California Labor Code Sections 1720 et. seq. and 1770 et seq. as well as California Code of Regulations, Title 8, § 16000 et. seq. ("Prevailing Wage Laws"), which require the payment of prevailing wage rates, maintenance of certain accounting and other records concerning wages, and the performance of other requirements on certain "public works" and "maintenance" projects. It is the belief and understanding of the City and the Contractor that this Agreement does not involve a "public work" or "maintenance" project, as defined by the Prevailing Wage Laws. Notwithstanding the foregoing, the Contractor hereby expressly acknowledges and agrees that the City has not represented to the Contractor that the work performed will not be a "public work", and in the event that a determination should ever be made that this Agreement does involve a "public work" or "maintenance project" or is otherwise subject to the Prevailing Wage Laws, the Contractor agrees to fully comply with such Prevailing Wage Laws. The Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any and all claims, liabilities, costs, penalties or interest arising out of any failure or allege failure of the Contractor to comply with the Prevailing Wage Laws in connection with this Agreement. If the City or any of the indemnified parties are named as a party in any dispute arising from the failure of the Contractor or its subcontractors to pay prevailing wages, the City and the other 0.11 indemnified parties may appoint their own independent counsel to monitor such proceedings at their own cost and expense; provided, however, the Contractor will be responsible, in addition to all other damages, fines, penalties and losses incurred by the City and the other indemnified parties as a result of the action for which indemnification is provided, to pay the reasonable attorneys' fees and defense costs of the City and the other indemnified parties' independent counsel in the event (i) the Contractor fails to undertake to defend the City and the other indemnified parties against an indemnified claim, (ii) such counsel becomes necessary due to a conflict of interest, or (iii) the Contractor agrees to pay such costs. This addendum must be signed, and the original delivered or mailed to the Purchasing Department, for receipt by November 7, 2005. This addendum is to be incorporated in, and become part of the RFP, Service Agreement and ultimate award. All other terms and conditions of the referenced project remain unchanged. Brenda E. Hodges, C.P.M. Purchasing Agent Issued: November 2, 2005 This addendum must be signed and submitted by: I acknowledge receipt of Addendum #1: 04AL, SSD Systems 11-4-05 Bidder Signature Company Date CC: Project File n2- ACORD CERTIFICATE OF LIABILITY INSURANCE OP ID DATE(MWD0/yYYn SECOR-1 10/31/05 PRODUCER ISO Curry insurance Agency Lic #0588757 489 E. Colorado Pasadena CA 91101 Phone: 626-449-3870 Fax:626-449-5268 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIL 8 INSURED Security signal Devices Inc l740 N. Lemon St Anaheim CA 92801 INSURER A ,iree mercury insurance cowers INSURER B: stets Nnd-Ssk raflald office INSURER C. NSURER Cr INSURER E: COVERAGES THE POLICIES OF INSURANCE USTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT. TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE NSURMICE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE UMITB SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INaII LTR SUM NSRL TYPE OF INSURANCE POUGY NUMBER POLICPEP-ECTIVE DATE (LOWDO/TY) POLICY EXPIRATION DATE (MANDDIYY) WITS A X GENERAL X LIABR.RY COMMERCIAL GENERALUABILITY FNMX0236-2 10/26/05 10/26/06 EACH OCCURRENCE $ 1, 000, 000 PREMISES(Ea acfurencu) 350,000 - CLAIMS MADE I X I CCCUR Owner/Coat Prot. MED EXP (Any we pecan) S 5, 000 X PERSONN.&ADVINJRY 31,000,000 GENERAL AGGREGATE s2,000,000 GENL —1 AGGREGATE LIMT APPLIES PER: PRODUCTS-COMP/OP AGG $ 2,000,000 - PoucY n ,,1EGT I ifLOC Emp Ben. 1,000,000 AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS COMBINED SINGLE LINT (Ea strident) $ BODILY INJURY (Per person) $ BODILY INJURY (Per acice) 3 PROPERTY DAMAGE (Per accident) S GARAGE —1 LIASIUTY ANY AUTO AUTO ONLY • EA ACCIDENT $ OTHER THAN EA ACC $ AUTO ONLY. AGO S EXCESS/UMBRELLA —, UABIUTY OCCUR n CLAIMS MADE DEDUCTIBLE RETENTION $ EACH OCCURRENCE $ AGGREGATE $ S S $ B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIET0RIPARTNEA/EXECUTNE OFFICER/MEMBER EXCLUDFD4 I yes. descnbe under SPECIAL PROVISIONS below 808-0030/2005 01/01/05 01/01/06 Y/C LIMI S O R TORY LIMITS EH E.L. EACH ACCIDENT $ 1000000 E.L. OISEASE - EA EMPLOYEE S 1000000 E.L. DISEASE - POLICY LIMIT $ 1000000 OTHER DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT! SPECIAL PROVISIONS +10 days notice of cancellation in the event of non-payment of premium. The City of National City, its officers, employees and volunteers are additional insureds as respects operations of the named insured per form CVX GL0912(7/96) attached. CERTIFICATE HOLDER CANCELLATION CTNATCT The City of National City Attn: Chris Zapata, City Mgr. 1243 National Blvd. National City CA 91950-4301 ACORD 25 (2001/08) SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL * 3 0 GAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO S0 SHALL IMPOSE NO OBLIGATION OH LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVE AUTHORg6d Michael NTAT rry C ACORD CORPORATION 1988 ACORD CERTIFICATE OF LIABILITY INSURANCE PRODUCER Brakke-Schafnitz Ins. Brokers License #0428915 28202 Cabot Road, Suite 500 Laguna Niguel CA 92677-1251 Phone:949-365-5100 Fax:949-365 -5161 OP ID 99 SSDSY-1 DATE IMMIDDIYYYY) 10/28/05 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC N INSURED Security Signal Devices, Inc. dba: SSD Systems; RSS Security 1740 N. Lemon Street Anaheim CA 92801 NSURER A: Allstate Insurance INSURER B: INSURER C: INSURER D-. INSURER E: V V • ,..-.vry THE POLICIES OF INSURANCE LISTED BELOW HAVE ANY REQUIREMENT, TERM OR CONDITION OF ANY MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES. AGGREGATE UMITS SHOWN MAY HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POUCY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. PERIOD INDICATED. THIS CERTIFICATE MAY EXCLUSIONS AND CONDITIONS EXPIRATION POUCY (MMNDD/YY) NOTWITHSTANDING BE ISSUED OR OF SUCH BEEN REDUCED BY PAID CLAIMS. R LINSRD LTR AuvL TYPE OF INSURANCE POLICY NUMBER DATE (N MI EFFECTIVE OMITS GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ uAMNGE w(He ICU PREMISES (Ea =thence) $ CLAIMS MADE OCCUR MED E P (My one person) $ PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ GEML —1 AGGREGATE LIMIT APPLIES PER POLICY n JECT I 1 LOC PRODUCTS- COMPIOP AGG $ A X AUTOMOBILE X X $ $ LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS Comp w/100 Ded. 048688210 10/22/05 10/22/06 COMBINED SINGLE LIMIT (Eaamdenl) $ 1, 000, 000 BODILY INJURY (PAr Persm) BODILY INJURY (Par accident) S PROPERTY DAMAGE (Per accident) $ X Coll. w/250 Ded. GARAGE LIABILITY ANY AUTO AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC $ AUTO ONLY: AGG S EXCESS/UMBRELLA 1 UABIUTY OCCUR I I CLAIMS MADE DEDUCTIBLE RETENTION $ EACH OCCURRENCE $ AGGREGATE $ S $ $ WORKERS COMPENSATION AND EMPLOYERS. LIABILITY ANYCERIMEMBECLDED7 PROPRIETOR/PARTNER/EXECUTIVE OEFICERIMEMBER EXCLUDED? If yeS, describeVIunder SPECIAL PROSIONS below WC • TORY LIMNS UER E.L. EACH ACCIDENT S E.L. DISEASE • EA EMPLOYEE $ EL. DISEASE - POLICY LIMIT $ OTHER DESCRIPTION OF OPERATIONS I LOCATIONS! VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS The City of National City its officers, agents and employees are Named as Additional Insured, but only with respect to Auto Liability. *10-Days Notice of Cancellation is given for Non -Payment of Premium. CERTIFICATE HOLDER CANCELLATION NATLCTY The City of National City, its officers, agents & employees Attn: Chris Zapata 1253 National City Boulevard National City CA 91950-4301 ACORD 25 (2001/08) SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 3 0 * DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATWES. IdlyA^_t._SENTATIVE © ACORD CORPORATION 1988 Request For Proposal City of National City CCTV System Pilot Project E`MA-16r1 -0-Ps This RFP's purpose is to provide a description of the elements in the procurement, installation, configuration and implementation of the National City CCTV surveillance camera pilot project. Prepared by: Dr. Chris Dodkin Consultant City of National City Background The City of National City plans to build a network of surveillance cameras that will record activity around critical infrastructure points and in public areas of National City with the purpose of lowering crime rates through deterrence, detection, and prevention. The project will also enhance Urban Area security in National City by improving community safety, lowering the violent crime rate and reducing the rate of other non- violent crimes and prostitution. Purpose of Solution Cameras will initially be strategically placed at critical points along Roosevelt Avenue, between 4th and 8`h, to provide a clear visual deterrent against prostitution and other crimes, and provide law enforcement with the means to observe and record such criminal activity for assessment and prosecution. As a later phase, additional cameras for critical infrastructure protection will deployed, including, but not be limited to, the top 36 targets as identified by the National City office of Homeland Security. Those targets include: 1.Homeland Security areas of interest 2.High Traffic areas of interest 3.City infrastructure 4.City retail locations In addition, at a later time, streaming video via wireless is to be provided to PD with laptops and/or PDAs — so the proposed solution must support such streaming over limited bandwidth connections. Estimated Schedule Request for Proposal General Release 10/03/2005 Deadline for Bid and Proposal Responses, 5 PM 11/03/2005 Selection of Final Vendor 11/10/2005 Complete Final Vendor Negotiations and City Approval 11/15/2005 Implementation Begins 01/02/2006 Target Implementation Date Completion 01/31/2006 NOTE: Due date for completed vendor proposals is: 5 PM, November 03, 2005. • • • • • • - • • CCTV Pilot Location Detail • ,, ... • - : •-• • . • Proposed camera locations, associated with existing lighting and/or power poles, are detailed on the above map. Each camera location has been chosen by National City PD, to cover an area of interest either on, or next to, Roosevelt Avenue, City of National City. The priority for these locations is as follows: 1) Roosevelt & 8`h 2) Roosevelt & 5`h 3) Roosevelt & 4th 4) Roosevelt & 7`h Roosevelt & 8th Located on or near the traffic light poles at the junction, the PTZ camera should have a clear view up and down 8`h Street, as well as North on Roosevelt, covering the area around the AM/PM on the North-West corner. The North exit from the AM/PM parking lot on Roosevelt is of particular interest, as is the area under the I5 bridge looking South on 8Th Street. >2. View from Roosevelt & 8' looking North on Roosevelt Roosevelt & Located on a power/li t pole on the West side of Roosevelt — the PTZ camera should have a clear view up 5 Street to the East, as well as covering the area in front of the Super 8 Motel to the North of 5th Street. It is important that a clear view of parked vehicles on 5'h be available to the PTZ, and in addition, a clear view of the low wall on the East side of Roosevelt, South of 5th. View from West Side of Roosevelt — loolcmg North-East towards 5 Street Roosevelt & 4th Located on a power/light pole on the West side of Roosevelt — the PTZ camera should have a clear view up 4Street to the East. View from West Side of Roosevelt — looking East up 4th Street A 6 In addition, the PTZ should be mounted so as to give a clear view up and down the sidewalk on the West side of Roosevelt. p ,/,.:.ilf,{KI.:C.?.. . is y:>ZY:'.. vv 4': 4:. ,:•.s6;w;'::p;:::..:.Y,':f, ai'`,:::':.h^:i'�i:. �:A\."!nwi•::..; • v..:.vira s,..:x..r:;s: View looking North on Roosevelt fromWest side - Typical Light -pole shown. It should be noted, that especially at night, there are often Semi trucks parked on the West side of Roosevelt — and the PTZ must be mounted in such a location as to clear the trucks, and allow visibility `behind' them, up and down the sidewalk. Semi truck parked on the West side of Roosevelt Roosevelt & 7th Located on a power/light pole on the West side of Roosevelt — the PTZ camera should have a clear view up 7Street to the East. Vehicles parked along 7' Street are of interest, as is the area to the South of 7th, in front of the parking structure. View from the West side of Roosevelt — looking East -South -East towards '7" Street A 9 The PTZ should also cover the vacant lot to the North of Th — and the area in front of the Value Inn. View looking No -East from the West side of Roosevelt .. - ----- 1 Mounting Locations It is anticipated that the PTZs will be mounted on existing power/light poles along the west side of Roosevelt, above the level of parked trucks, and that each camera will be connected to the local power at each pole, in accordance with City and SDGE regulations. Connectivity back to the local DVR is expected to be accomplished via wireless infrastructure, provided as part of the complete solution. Vendors must provide details of their own site survey as part of their RFP submissions. 11 Connectivity to the City's Fiber Backbone The City of National City has it's own dark fiber, running one block to the East along National City Blvd. This fiber is home run back to the City Hall, and is expected to be used to back -haul the video signal from the remote cameras/DVRs. It is not expected to be possible to extend the fiber all the way to Roosevelt, so the solution tendered must include a wireless connection from Roosevelt to a suitable fiber splice point on National City Blvd, and the equipment required to terminate the fiber and copper connections, allowing data/video communications back to City Hall. The two available fiber termination points are on National City Blvd and 8th, and National City Blvd and 4th , and are shown on the overview map. The fiber is xxxxxxx., and should be terminated back at city hall by a suitable fiber switch, before being connected to a xxxxxx fiber that links directly with PD. At PD, the fiber should be terminated, to allow a PC workstation to be attached to the incoming data, for the purpose of monitoring and controlling the remote CCTV equipment. PIZ 4..:W4:r."<a snots prr 12 The selected vendor must meet the following functional requirements: Provisioning Requirements 1) Cameras a) Digital and/or IP based cameras b) Wired video connection at a minimum c) Wireless video connection in addition to wired video connection d) Minimum resolution of 480 lines for PTZ & Fixed cameras e) Capable of up to 30 Frames Per Second (FPS) of video 0 Pan -Tilt -Zoom (PIL) capable g) PTZ must be controllable over the IP enabled backbone network and programmable h) Minimum 25x OPTICAL zoom, digital zoom should NOT be substituted i) Color day image / B&W night image acceptable j) Must be capable of providing low light imaging by available light ONLY 2) Housings a) Appropriate outdoor housings for the cameras b) Electrical connection facility for connecting to public power grid c) Video connection facility for various connectivity situations d) The entire configuration must comply with any SDGE regulations zoning requirements where they are installed e) The housing should provide a unitized facility that includes the camera, enclosure, video/network connections, power connections and other electrical facilities in a single unit that can be easily mounted, removed and transported. f) The unit should be colored and badged as belonging to City of National City PD, and have a high -visibility strobe attached to alert people to their presence within the city. 3) Network a) The vendor must provide the video and data network resources b) Camera signals must be transmitted securely c) A mix of wired and wireless links are anticipated d) The network must support all cameras operating at a minimum of x Frames Per Second concurrently e) Termination of the cameras and digital recording of the video should be accomplished at either the local light -pole, or in existing traffic signal control boxes where appropriate. f) Access to all live video feeds and recorded footage must be available at NCPD Headquarters, in the office of Homeland Security and across the City of National City IP network. In addition — future streaming of live video to NCPD offices in the field, over wireless connections, should be supported — allowing suitably scaled feeds to mobile devices such as wireless enabled laptops and PDAs. g) For the purpose of network interoperability, Cisco network equipment is preferred h) DVR connectivity to the NCPD will be over IP, and will be carried over the city's existing single mode fiber backbone — additional wireless IP links will be required to bridge between DVR locations and end points for the fiber network. i) The IP video system will be a stand-alone network — and will not touch existing City or NCPD networks. Vendors should specify suitable network hardware to allow the single mode fibers from the city to interface to the multi -mode fiber connection from City Hall to NCPD, and for that fiber to be terminated on a suitable device for connectivity using std Ethernet Cat5 10/100 UTP for the monitoring workstation A13 4) Storage a) Digital video storage is required (DVR) on resilient hard drives b) Storage should provide a rolling 5 day recording time for all cameras c) Provision must be made to store footage tagged as evidence for a longer period of time, preferably in a low-cost medium unless online disc storage is feasible. 5) Management a) Appropriate software should be included for management of the system b) The software must be scalable to support central operation of all cameras from one station c) Management includes i) Video storage ii) Viewing live feeds from cameras iii) Viewing stored (recorded) footage iv) Saving specified footage to an alternate medium v) Automatically archiving footage tagged as evidence d) The system must support simultaneous use of all functions e) The system must support output to digital (CD-ROM or DVD) and analog (video tape) media f) Output must be in appropriate non-proprietary format to facilitate admissibility in court (JPEG, M-JPEG, NTSC Video, etc.) g) Control of the system must be via a Graphical User Interface (GUI), with all camera locations available from the one monitoring station — ideally based on subsets using a geographical naming schema. h) The management workstation should be PC based, and have video output to a large screen in NCPD dispatch for real-time review and camera management. 1 Installation Requirements 1) The winning bidder will serve as Prime Contractor for the project, coordinating all the necessary resources, providing a phased project plan, and providing weekly updates to the City Project Manager. 2) The winning bid must provide for installation of up to 4 cameras during the first phase with the possibility of more as funding or alternate sources allow 3) Installation includes connection to the power grid, network connectivity and proper compliant installation of the cameras in close proximity to public power lines 4) The winning bidder must work with local power, cable and telephone companies to ensure proper setup of the cameras so as not to interfere with existing utilities 5) The winning bidder must ensure the proper functioning of all network components, including wireless components and any interference issues 6) Installation should take place during January 2006 7) Time Frame: All bids should contain proposed time frames for a Jan 06 install Maintenance Requirements 1) The "Initial Maintenance Period" will be for one year from contract signing 2) All bids must account for maintenance of the cameras and associated equipment, software and facilities provisioned by the project for the Initial Maintenance Period 3) Maintenance must include warranty service for the Initial Maintenance Period 4) Engineers to perform this service should be located in San Diego/Orange County and available within a maximum of 48 hours for the term of the Initial Maintenance Period. Training Requirements 1) The winning bidder must provide training to designated City Employees 2) The number of employees receiving training is anticipated to be approximately 10 the first year 3) Training should include: a) Basic system operation b) Viewing live video from a selected camera c) Viewing archived video for a specified time range from a specified camera d) Storing selected video to local media such as CD-ROM or Video Tape 4) Training does not include maintenance of the system Cost and Financing Requirements 1) All bids should contain a schedule of costs for all individual components 2) The City requests a fixed price per camera for maintenance a) Assume a 10% camera break/loss ratio b) The City will require a "Do Not Exceed" clause and will cap repair or replacement of cameras at 10% of deployed cameras per year. 3) All items that are delivered in increments should be priced as such: a) Storage systems should be priced by units of storage (in Gigabytes or Terabytes) b) Software should have any per seat or per camera licensing costs c) Camera setups should have a per camera cost i) Camera costs should account for two setups: Best Case and Worst Case ii) Best Case is a public utility pole, with power connectivity available at the camera site, and wired connection from the Camera to DVR possible. 1 iii) Worst Case covers a location with no available wired connectivity for the video feed from the camera to the local DVR. iv) Vendors should assume an 80/20 mix of Best Case (80%) and Worst Case (20%) when proposing an overall cost based on the per camera cost 1 FORMAT AND CONTENT OF PROPOSAL In order for the City staff to adequately compare and evaluate proposals objectively, all proposals MUST be submitted in accordance with the format outlined in this section. The proposal should be prepared simply and economically, providing straight -forward and concise information as requested. Each proposal should be placed in one book format and separated by section and tabbed in conjunction with the proposal specifications. One (1) original and three (3) copies of your proposal must be submitted. The proposal sections and format MUST be organized as follows: Title Page/Cover. One printed page maximum. Show the name of the proposing vendor, its principal business address and the local address that would serve the City (if different from the principal address), the contact information for the person making the proposal, and the date that the proposal was submitted. Tab 1: Table of Contents. One printed page maximum. Tab 2: Transmittal Letter. Two printed pages maximum. The letter should briefly address the vendor's willingness and commitment, if selected, to provide the services, why it should be selected and any exceptions to the services requested by the City. Tab 3: Vendor and Staff Profile. Five printed pages maximum. Respond to the following itemized text sections: Describe the Company or Companies — Briefly describe history, financial stability, etc. Describe any experience in providing similar solutions. Summarize the solution provided for the three most comparable corporate or municipal customers. Include a brief description of the services provided, how long such services have been provided and a contact person for each client described. Identify the personnel to be assigned. Describe the role and responsibility of each person assigned a major role in this relationship briefly detailing credentials and experience. Tab 4: Exceptions: List any required services which are not included in the proposal. Tab 5: Technical Description: Ten printed pages maximum. Describe the proposed solution, identifying how it meets the requirements specified in the previous section of this document. Include any additional services that the proposing company can provide that you feel may benefit the City. Finally, include key points that you feel distinguish your solution from the competition. Tab 6: Pricing. Three printed pages maximum. Describe the pricing for the solution. Make sure to itemize the exact cost for each part of the solution as the City reserves the right to implement any portion of the proposed solution without implementing the proposed solution in its entirety if it feels it can benefit from the cost savings. The pricing should be complete and should state all assumptions used in determining the pricing. 17 Such assumptions may include, but are not limited to, minimum hardware requirements, software licenses required, network bandwidth, minimum personnel qualifications, market indexes, etc. Tab 7: Pricing Adjustments. One printed page maximum. Prices are to be reviewed and adjusted at the start of each subsequent year. For subsequent years, indicate what process the vendor proposes for price increases, if any. Indicate if there is a maximum percentage increase applicable. Tab 8: Implementation Plan. Two printed pages maximum. Describe the overall implementation plan and any variations from or additions to the system described in this request for proposals. Discuss your use of any sub -contractors, your timelines, contingencies and reliance on the City of National City for specific functions. Tab 9: Service Enhancements. Three printed pages maximum. Based upon information about the City's camera program needs and goals learned during the course of this proposal process, describe any enhancements, technological or otherwise, that the City should consider to improve operational efficiencies. Tab 10: Authorization to Contract. Two printed pages maximum. Provide a Corporate Resolution, Certificate of Secretary, or correspondence from the Chief Executive Officer or Chairperson attesting that the individual signing the proposal has the authority to make binding representations on behalf of the vendor. Tab 11: Financial Statements and Ratings. Provide the most recent audited financial statements for the vendor and at least two credit ratings for the past three years. Tab 12: Open Access Plan. Two printed pages maximum. Provide a description of vendor's intent and plans to comply with the City's Open Access Plan. Tab 13: Other Information. Three printed pages maximum. Briefly describe any other information not previously mentioned that the vendor believes should be given consideration by the City. Tab 14: Appendices. Include references to technical specifications or other reference material here. Proposals to this RFP are expected to demonstrate an understanding of the services requested, the ability and experience necessary to perform such tasks, and a plan for providing the services within the estimated budget and work schedule. The City of National City reserves the right to require clarification of any information submitted from any of the applicants. 18 SELECTION CRITERIA: While the total cost of this implementation will certainly have weight in the selection process, the City of National City values the vendors' implementation strategy for this project heavily. The goal of our selection is to pick a vendor based on our conviction of the vendor's ability to complete the implementation with minimal disruption to business, minimal mistakes and ability to deliver on implementation schedule. Evaluation will be done by assigning weighted factors including, but not limited to the following criteria: a) Overall response to the Request for Proposal b) Quality of Engineering/Technical Support c) Implementation Timeline d) Cost of Hardware Proposals will be thoroughly reviewed by a Screening and Selection Committee. At the option of the City, those selected as contenders may be invited to make a presentation in person. CONTACT INFORMATION: The following is the contact information for the IT Department of the City of National City. The vendor should enter the following information pertinent to the team who will be involved in the implementation project as per this RFP (See "Support Section". If you have any questions, please contact: BERNARD YEO MIS MANAGER CITY OF NATIONAL CITY 1243 NATIONAL CITY BL. NATIONAL CITY, CA 91950 619.336.4373 19 SSD SYSTEMS 11031 Via Frontera Ste. B Rancho Bernardo, CA 92127 (858)675-8139 fax (858) 675-8168 Fire Alarm • Access Control • Intercommunication Systems • Security • CCTV • Data October 18, 2005 (revised 10/31/05) (revised 11/7/05) BID QUOTATION Network -Based Digital Video Surveillance ROOSEVELT AVENUE CCTV PILOT SYSTEM Mr. Bernard Yeo Dr. Chris Dodkin Thank you very much for the opportunity to respond to your request for providing the City of National City (The City) networked CCTV solutions for the Roosevelt Avenue CCTV project. As you can imagine, I'm very excited with the prospects of implementing the cameras, and participating in this pilot program. It isn't every day that I have the opportunity to so directly and positively make an impact on my community. Personally speaking, such activities are what keep me passionate about my profession. Scope of Work The project, broadly defined, entails remotely monitoring, controlling and recording four PTZ video cameras along Roosevelt Avenue back to the main NCPD monitoring station via a combination of existing fiber optic lines, wireless transmitters and receivers, and network hardware and software interfaces. Using state-of-the-art communications and video management software, The City has the opportunity of leveraging existing telecommunication infrastructure with the very latest in CCTV systems architecture to affect the ability to deter, detect and prevent crime. The base system architecture proposed is virtually unlimited in capacity, and represents an enterprise -wide intelligent security solution. SSD intends to install four high -quality color (day/night) pan/tilt/zoom cameras on utility poles (provided and authorized access by SDG&E) along a four -block stretch of Roosevelt Avenue, in National City, at or adjacent the intersections of West 4th, 5th, 7th and 8th Streets. These cameras will be mounted high, and strategically non -obscure so as to provide a visible deterrence. These video signals will be carried over wireless and fiber optic signals so as to allow integration with the existing DVTe1-based network video technology in place at the police monitoring center. Wireless transmission of the video signals is carried via MicroTek products. All cameras will be equipped with wireless signal components providing the cost savings of limited infrastructural modifications. These devices will transmit and receive both the video and tl v data signals (for PTZ control) to and from each camera location. DVTel products are also the basis of the video signal encoding and decoding making is possible to remotely receive, manage, record and monitor the images. Our meetings and presentations thus far should serve well to illustrate the technical concepts and promote your understanding of the systems design and intent. This project represents the first utilization of remote camera monitoring, and is in fact the Pilot project. SSD intends to utilize Sony brand camera products. Sony RZ30 has a 30X optical zoom lens, which conforms to your Draft RFP, whereas our earlier Pelco product did not (at 23X optical). All equipment, materials, labor, enclosures, programming, training and testing are included by SSD to ensure that the camera systems indeed operate to customer expectations. As we have discussed and made clear, there are exclusions to the overall implementation of this CCTV pilot program, including: • Authorized access to utility poles (via SDG&E) • Power source on the utility poles — specifications provided • Fiber Optic communications facilities (purportedly along National City Boulevard) • Conduit as required for the job, including access to existing low -voltage undergrounL conduits, traffic signal conduits, and low -voltage connectivity from City Hall to the Police Department. • File Server (requirements submitted previously) with monitor • Trenching, painting, patching, work on circuits higher than 110vac • Drawings, if required • Bucket lift is not included and is to be provided for by the City Schedule of Solutions 1 — Microtek Receiver kit with Transmitter 4 — Microtek Transmitters (1 for each camera) 1 — Fiber Optic TX (multimode) 1 — Fiber Optic RX (multimode) 1 Fiber Optic TX (single mode) 1 — Fiber Optic RX (single mode) 4 — Sony RZ-30 PTZ Dome IP Cameras 4 — PTZ mounts and mount adapters 5 — NEMA 4X Enclosures, with fans, filters 1 — DVTel PTZ Joystick Controller with Software SSD will provide upon completion of the project a detailed documentation of the installation including: 1) Camera Equipment (camera settings, wireless setting/configs) 2) Fiber Pull (exact conduit access points, patch panel points/numbers) 3) DVTel configuration (for all components: Digital Media Controller, Digital Media Archiver, Control Center). 4) Executive Summary of overall configuration 5) Executive Summary of settings in DVTEL software components. 10/31/05 Revision Notes: Bernard and Chris, In the process of pulling together the part numbers and miscellaneous information, we made some significant changes to our scope of work — not so much in the design or layout, but in the equipment selections surrounding the PTZ cameras. Upon re -reviewing the draft RFP specifications, we realized that the Pelco Spectra III did not meet the 25X optical zoom component. We do sell (and have sold) the Sony PTZ RZ- 30 camera which comes with some surprising and advantageous features: • This is an IP-based camera. Therefore, we were able to eliminate the analog-to-IP encoders (which saved over $2,000). • The camera is less expensive (by around $1,000 each) • The RZ-30 includes a 30X optical zoom lens — much better than the Pelco • The housing for this camera was also less expensive Also, I made another important change to the scope in adding the PTZ joystick controller. This is a DVTel product and includes the software component. I thought it would be important to have this device, although the DVTel head -end software does indeed include the virtual joystick. I think hands-on is better. This component is one-time, and so will not be included on subsequent orders. 11/7/05 Revision Notes: Bernard and Chris, I have added the requirement for us to accommodate the fiber optic materials, equipment, labor and installation of the connection (including fiber termination) between National City Boulevard and Roosevelt Avenue. We will provide this installation in conjunction with the rest of the work so as to complete the total package concept of the project. Schedule of Investment Includes all applicable taxes, labor, materials, equipment, training $ 60,550.96 Our site survey last week was very successful, and we were able to confirm the placements, distances and technical requirements from a Project Management perspective. I appreciate that a good number of your Team was able to participate and contribute to this important step in what will lead to a smooth implementation phase of the project. Thanks once again for your time, and for this opportunity, Sincerely, Carl S. Donoho (858) 675-8139 t•\ C CITY OF NATIONAL CITY - ROOSEVELT AVE. CCTV SYSTEM PILOT PROJECT Count Item Description t? MFG Part# Item Cost Ext. Cost Tax Total Cost 4 4 4 4 PTZ Camera Environmental Dome Enclosure Pole Mount Adapter Enclosure Mount * * * * Sony Sony Sony Sony SNC-RZ30 UNISNCOD8C2 SNCAPM3 SNCWM2OG $2,350.00 $ 615.00 $ 65.00 $ 121.00 $ 9,400.00 $ 2,460.00 $ 260.00 $ 484.00 $ 728.50 $ 190.65 $ 20.15 $ 37.51 $ 10,128.50 $ 2,650.65 $ 280.15 $ 521.51 1 1 Miscellaneous Costs DVTeI Keyboard * misc misc $2,000.00 $ 2,000.00 $ 155.00 $ 2,155.00 1 Controller Keyboard Software * DVTeI DVT-KBB $ 1,410.00 $ 1,410.00 $ 109.28 $ 1,519.28 1 Wireless Receiver * DVTeI DVT-KBS $ 665.00 $ 665.00 $ 51.54 $ 716.54 w/TXM * Microtek ML-WES-D $1,940.00 $ 1,940.00 $ 150.35 $ 2,090.35 4 2 1 Wireless Transmitters Power Supply Multimode Fiber * * Microtek Microtek ML-WSU 613-P $ 729.00 $ 65.00 $ 2,916.00 $ 130.00 $ 225.99 $ 10.08 $ 3,141.99 $ 140.08 1 Transmitter Multimode Fiber Receiver * * GE GE S714DT-EST1 S714DR-EST1 $1,100.00 $1,100.00 $ 1,100.00 $ 1,100.00 $ 85.25 $ 85.25 $ 1,185.25 $ 1,185.25 1 1 5 5 Single Mode Fiber Transmitter Single Mode Fiber Receiver NEMA 4X Enclosures (stainless) Misc Vents/Fans/Filters for NEMA * * * * GE GE Hoffman var. 57714DT-EST1 S7714DR-EST1 16X16X6 var. $1,945.00 $1,945.00 $1,020.00 $ 740.00 $ 1,945.00 $ 1,945.00 $ 5,100.00 $ 3,700.00 $ 150.74 $ 150.74 $ 395.25 $ 286.75 $ 2,095.74 $ 2,095.74 $ 5,495.25 $ 3,986.75 4 1 1 175 DVTeI Camera License Fiber Optic Install (NCB to Roosvlt) Labor; Fiber Optic Installation Labor; Security Systems Installation * * DVTel var. n/a n/a LAT35-C-NDCL var. n/a n/a $295.00 $300.00 $1,650.00 $ 102.39 $ 1,180.00 $ 300.00 $ 1,650.00 $17,918.25 $ 91.45 $ 23.25 $ 1,271.45 $ 323.25 $ 1,650.00 $ 17,918.25 TOTAL LABOR COST $19,568.25 TOTAL EQUIPMENT COST $ 38,035.00 TOTAL TAXES $2,947.71 TOTAL COST OF PROJECT $ 60,550.96 * - Indicates taxable item ITEM 41 30 11/15/05 NATIONAL CITY PROGRESS REPORT August 1, 2005 - September 1, 2005 The mission of the Alpha Project is to empower individuals, families, and communities by providing work, recovery and support services to people who are motivated to change their lives and achieve self-sufficiency. Since October, 2004, Alpha Project has been working in National City providing outreach services to the City's growing homeless population. Alpha Project's Take Back the Street Program provides the City of National City outreach and community services one day out of the week with a crew of three persons and one supervisor. Alpha Project's TBS program has assisted with homeless mitigation in National City with referrals, weed abatement, clearing homeless camps, outreach, and tree skirting or removal of trees and debris. Since the inception of the program, Alpha Project has been providing walking patrols in Kimball Park twice a day once, in the morning and in the afternoon. To date, Alpha Project has provided community revitali7ation/cleanup and outreach at the below sites. 08-05-05 - cleaning of transients camps, weed and tree trimming, hauling debris to dump, • Kimball Park Outreach, • Behind Smart and Final, • 99 Cent Store, • Behind Big Lots, • Paradise Park Motel, • A-1 Alloys Recycling Center 08-12-05 - cleaning up of transients camps, weed and tree trimming, cutting brush, hauling debris to dump, • Kimball Park Outreach, • 99 Cent Store, • Highland and E. 8th Street, • Cleveland. and Civic Center Drive, • Behind Toys R Us, • Behind Smart N Final, • Behind Big Lots, • A-1 Alloys Recycling Center, • Ha Penny Inn 08-19-05 - cleaning up of transients camps, weed and tree trimming, hauling debris to dump, • Kimball Park Outreach, • 99 Cent Store, • Harbor Drive & Civic Center Drive, • 3600 East 8th Street • Highland & 8th Street, • Cleveland & Civic Center Drive 08-26-05 - cleaning up of transients camps, weed and tree trimming, hauling debris to dump, • Kimball Park Outreach, • Grove & Plaza, • City Library, • 12th Street, • Euclid & E. Plaza 2500 Bik., This month Alpha Project has been to the aforementioned locations at least two/three times each and some locations more than three times. We have leaned and removed approximately 5.90 net tons of homeless camps, trash and debris. We have trimmed and skirted 15 trees. Alpha Project has provided outreached to 6 homeless men, women, and teens ranging from 15 to 68 years of age. Alpha Project has housed 2 of those homeless people and offered services to all. About half of the homeless population that Alpha Project encounters in National City is from out of State. On average, contacts have been homeless from one day to 20 years. A portion of those people are on SSI, but refuse to get help. Approximately 75% of those offered services are on drugs and/or alcohol. Many collect cans and panhandle for money to buy food and support there drug or alcohol habit. The homeless of National City have been living underneath bridges, in the river beds, in the City's parks and recreation areas, flood water channels, churches, on -ramps, and in commercial and residential foliage. Alpha Project for the Homeless would like to thank the City of National City for the opportunity to collaborate with the City to provide meaningful solutions to its homeless dilemma. Of course, we could provide a more thorough outreach and community revitalization if we had more than one day a week to provide said services. Attached, you will find numerous pictures that have been taken within the City demonstrating our work. Thank You, Karen Pucci, Community Projects Manager NATIONAL CITY PROGRESS REPORT September 1, 2005 — October 1, 2005 The mission of the Alpha Project is to empower individuals, families, and communities by providing work, recovery and support services to people who are motivated to change their lives and achieve self-sufficiency. Since October, 2004, Alpha Project has been working in National City providing outreach services to the City's growing homeless population. Alpha Project's Take Back the Street Program provides the City of National City outreach and community services one day out of the week with a crew of three persons and one supervisor. Alpha Project's TBS program has assisted with homeless mitigation in National City with referrals, weed abatement, dearing homeless camps, outreach, and tree skirting or removal of trees and debris. Since the inception of the program, Alpha Project has been providing walking patrols in Kimball Park twice a day once, in the morning and in the afternoon. To date, Alpha Project has provided community revitalization/cleanup and outreach at the below sites. 09-02-05 — cleaning of transients camps, weed and tree trimming, hauling debris to dump, • Kimball Park Outreach, • Behind Smart and Final, • 99 Cent Store, • Behind Big Lots, • Paradise Park Motel, • A-1 Alloys Recycling Center, • 3600 East 8th Street, 09-09-05 — cleaning up of transients camps, weed and tree trimming, cutting brush, hauling debris to dump, • Kimball Park Outreach, • 99 Cent Store, • Highland and E. 8th Street, • Cleveland and Civic Center Drive, • Behind Toys R Us, • Behind Smart N Final, • Behind Big Lots, • A-1 Alloys Recycling Center, • Ha Penny Inn, • 3600 East 8th Street, 09-16-05 — cleaning up of transients camps, weed and tree trimming, hauling debris to dump, • Kimball Park Outreach, • 99 Cent Store, • Harbor Drive & Civic Center Drive, • 3600 East 8th Street • Highland & 8th Street, • Cleveland & Civic Center Drive, • City Library, 09-23-05 - cleaning up of transients camps, weed and tree trimming, hauling debris to dump, • Kimball Park Outreach, • Grove & Plaza, • City Library, • 12th Street, • Euclid & E. Plaza 2500 Blk., This month Alpha Project has been to the aforementioned locations at least two/three times each and some locations more than three times. We have cleaned and removed approximately 8.64 net tons of homeless camps, trash and debris. We have trimmed and skirted 15 trees. Alpha Project has provided outreached to 6 homeless men, women, and teens ranging from 15 to 68 years of age. Alpha Project has housed 4 of those homeless people and offered services to all. About half of the homeless population that Alpha Project encounters in National City is from out of State. On average, contacts have been homeless from one day to 20 years. A portion of those people are on SSI, but refuse to get help. Approximately 75% of those offered services are on drugs and/or alcohol. Many collect cans and panhandle for money to buy food and support there drug or alcohol habit. The homeless of National City have been living underneath bridges, in the river beds, in the City's parks and recreation areas, flood water channels, churches, on -ramps, and in commercial and residential foliage. Alpha Project for the Homeless would like to thank the City of National City for the opportunity to collaborate with the City to provide meaningful solutions to its homeless dilemma. Of course, we could provide a more thorough outreach and community revitalisation if we had more than one day a week to provide said services. Attached, you will find numerous pictures that have been taken within the City demonstrating our work. Thapk You, area Pucci, Community Projects Manager NATIONAL • CITY •TRANSIT MONTHLY REPORT NOVEMBER-2005 Technology ITEM #31 11/15/05 1. The joint NC -MIS and NCT Kiosk project has been completed and this new resource is located on the 2" floor at National City Hall. If this equipment is received well by our community there are transit funds available to purchase an additional Kiosk for locations such as the Library or Plaza Bonita possibly in conjunction with a NCPD storefront. NCT is very pleased to be able to leverage our CIP funding to benefit multiple agencies and improve our community messaging capabilities. 2. The joint NCT-NCPD Security camera pilot project is progressing for placement of Real Time video cameras along a NCT bus route. We anticipate moving forward with our project after reviewing the results of the consultant for the NCPD equipment specifications to ensure that our system will be compatible with equipment being purchased for that project as it will tie into the NCPD communication Center for direct viewing. We estimate full installation of a probable four (4)-camera system by the end of the 1st quarter in 2006 at a bus stop location yet to be determined. 3. The approved NCT- RCS Radio system will replace our existing NEXTEL system in our bus fleet and staff vehicles. The antenna system has been installed at our facility and the radios have been programmed. Full installation should begin shortly. 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 light of recent events in the New Orleans area and other similar emergencies. PERFORMANCE DIVIDENDS MONTH OCT-04 SEPT 05 OCT-05 Ridership : 139,008 146,735* 150,583 Passengers per mi. 3.44 3.79 3.74 Passengers per hr. 36.78 43.89 42.97 Revenue miles: 40,465 38,689 40,289 Revenue Hours: 3,779 3,343 3,504 Fare Box recovery, (revenue vs. expense) 48.1% 58.2% N/A** * One less weekday service day due to Holiday on September 5th (Labor day) ** Data delayed due to submission dates 522 West 8th St. • National City, California 91950-1004 • (619) 474-7505 Fax (619) 474-2058 McDonald Transit Associates, Inc., Contract Operator for NCT PERFORMANCE DIVIDENDS MONTH SEPT-04 AUG 05 SEPT 05 Road Calls 0 05 07 Accidents 01 02 01 Lift deployments N/A* 687 696 Our on -time performance 94.3% 98.8% 90.0% Customer Complaints N/A* 05 03 Customer Compliments N/A* 00 02 * Data not previously tracked. Maintenance: NCT vehicles used 13,204 gallons of low sulfur diesel fuel. Our average cost per gallon was approx. $2.62 per gallon in October. NCT maintenance personnel performed 12 Preventative Maintenance Inspections (PMI's) and made 07 minor repairs consisting of window and mirror inserts, farebox, charging system and batteries. We also made 09 major repairs consisting of front & rear brakes, axle cover, outer rear seals, rear spring brakes and front & rear drum repairs to our fleet vehicles in August. ministration & Community Collaboration NCT trailers were utilized and staff distributed MTS and Community information in October: October 22nd Library Chili Cook -off Library Parking Lot NCT also had a team that participated with a Chili entry. We had event and Community informational flyers (see attached) available as "take one's" on all of our Transit vehicles including the Sales Tax Ballot Measure fact sheet. 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 (CEP), Uniform Fare Working Group, Security Critical Incident Committee (SCIC), Transit Research Working Group, Accessible Services Advisory Committee (ASAC), and South County EDC Transportation Committee. MTS-COA MTS is in Phase II of their "Comprehensive Operational Analysis" (C.O.A.) which as its goal is to "Evaluate and restructure MTS services and operations to more efficiently serve the region's transit needs and meet operational transportation goals within the constraints of the current financial and ,.operating environment." Phase II will focus on achieving long-term financial sustainability through 'creased ridership, productivity, and operational efficiency. 'We recently received a package of proposed system changes that included system maps (included in this port) for the National City Community and how our present service area would be changed which include elimination of certain portions of our routes. Needless to say the proposals if approved will drastically and dramatically change our current services into a more regional system. For that reason it is vital to the success of these anticipated chances to ensure that our community and public officials have every opportunity to fully review, comment and provide feedback. My staff is already working closely with the staff at MTS to review proposed route revisions and we will provide additional information to our community as soon as it becomes available. This is a huge undertaking and we look forward to the opportunity and challenges to assist with making what is already a great transportation system, especially in National City even better through increased services, passenger amenities and regional destinations. If done correctly this project has the potential to enable more people in our community to take advantage of improved MTS services through increased productivity and efficiency. A COA public outreach event is scheduled for Friday, November 18`h from 4pm-6pm at the 24th Street Trolley Station for MTS staff to take comments and concerns from all interested parties. NCT is a member of the California Transit Association (C.T.A) and the American Public Transit Association (A.P.T.A.) and we are an active advocate for Local, Regional, and National Transit related issues. Charles Gibbs, NCT Maintenance Manager and I are scheduled to attend the California Transit ssociation (CTA) conference and Expo in San Jose in early November. 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 NCPD Chief of Police advisory committee as well as the NCPD safety camera and 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. J� P. Webster Sr. ice President -General Manager National City Transit Submitted: NgvemberI 07 A_ MTS-COA NC ROUTE MAPS 4 ll UJtited , St0t!i, Naval Stitbn Mt°T##Cf1 e / T t 4739 RUtIT ; rRorg 2TTt# Y9TAT�Uy ra na m—t Ar to eat C ,Tn mM,oi 1^wpMTn .� nW!#1 t r',/11) Ti4 GV gr. ftch4V, t .,94.r itiia Hi. ert'IVO*r$ ry (21-610Jecezi�) Effm, d/0_5 Mk ofe seta, y10/404111 M# /illt+ri 44.1. rtiM YlMr merY** klioitYrv* n t inrnt t!M^+MMri^ p 1' Iw h 1W4}.ayi 1 NA rv�^^? tWA rt Legend lEmp oyment Denslt Employers/Acre) twv Less than to *ti 10 - 20 20.30 4r 30-40 agit More then 40 opulation Density PersonslAcre) Less than 1 1-10 10.20 '20-30 More Olen 30 t,N .31,311tt?j _imPer VAL-- V1" �r svra n ��pa:�N RM ie,".m 9��7� trfir4*t 1 Y I " w.r14117( EI1tWPIEW76 -Ow - PolosI t '11 IFsss1 .NA INNAL.-Al/Me ci n =r r4p= S7� Emp oyment Densit IEmp oyers/Acre) '{ Less than 10 7 10.20 er I20-30 u�, I30-40 7' More than 40 opulation Density PersonsLAcre) Less than 1 1.10 .'yY' t .a�� r114 lig 41,ft '.4eall 11.VAIN24firrui Legend Employers/Acre) Less than 10 10- 20 OP 20 - 30 41 - 40 More than 40 opulation Density Persons/Acre) Less than 1 TO 1: 10 10- 20 20 - 30 More than 30 •ii.,•14rz 91-E2:7 rir • ..0....., N 1,,,,---,r“,,, ,, ..-....... nilgr,k 1 l'AL .7. \ V ''77i'rIAP.Er'ij'All'"A;'':' ft. . f PPVPITIIrte ;11 PF.1 golPIMP),Ari r 1,4dpitp, \I..„.11:14111141111 ,Itnpplitop 6'"•'''s AN N. •,5:"ss...,.,- : , , , 1 ,..71e7, . f7.'"" IT '''''' ..,, ..n.i,.1 m, " P, 'F'ikr4.r43.7.74,,,V1 -.- ..........—NAIIIONAL V — CC r!,41 tic-74 th Trtiit"/ 4 ram.= • - fri LIsLI.LitL I MARKEL dli" MARKET PsW.r.4 477 ...10! ''. "Y;;;;;•—" '-'7,747,1 VI EW 81! 7— Ic. •-: reirniniAv IIVIPERFAirA •-• yr I' - ,..'`....,::;,,,,•i• ifipri. r ,,'",i-i 17.77 77711! • 11/" Oi_0(3Z0‘.1. vi.77 Legend mpioyment Densit EmployerslAcre) +;w Less than 10 .t x 10 - 20 pa' 20.30 30-40 ere More than 40 opulation Density PersonslAcre) . Less than 1 It•.10 '10.20 20 -30 More than 30 PALM (S13 ." .FALrMz(SB AV reIlh.' @6lt7i� .! te?. LM4ee4Hr IMPERIAL BEACH BLsl3Srt=-+((. yt 1 l3 9 i x'co q t j w.' .ui 3 SR 905 Ede - OTAY MEf3A rib ,r)03 . f . A ®~\f%f G + )^ o \#±>} \�kg y L gend~, ®® il 2 : Vili mio_mvnslt 16'' ro Ei.&kro) f ® # z, G« «3 l m a= ,44 .mr m mpmlmvnm@ ,Persons/Acre) Less than 1 fl 12 Legend Employment Densit lEmployerslAcre) 44 Less than 10 10 - 20 Tria741 20 - 30 fole 30 - 40 sie More than 40 Population Density Persons(Acre) Less than 1 .1:i0 ieto- 10 20 SV: 20 - 30 0114! • More than 30 cr rp ir'inlgrearnmx, 1," 07:IMPERIAL:7W.' 00.eltr— .„4.1.0., cie.VV\*'' viel • ‘1, A A „irltrOgr ‘1511nItit li 1 ittqfp I'l r Et CAJON BL 111 I RI 111111f1otitl• 1 •'Ivy?! P r Ilgtrglir, 717 ,11,,,v-Ipri,7 1,, rh 'Avioir , ., 4uviikyl!inwili NOL. ST , '-'i- .1 t: qr°,111110-/rikA0 lir 1611, ' If 1.4.- li • "ilinfro,v,%‘.. ItilNpl9r ,rpour ,....„1 r, k, \ , , :: 11:;141-N:?c: 0 fixil ,,,.' ,1: !,44. 1 z',7ii•-", VI, t I/ sl ‘i-i,, -4 4,.1.:::. 1\ ^ -,r ffql ,i OSi ---,,, rg.rdlii;ici- ' 1-,V447.'4'tf .;,;111/1;:. :,/,.. ,... jr .1117 .g r ' a X III, ...! v..1, , 'pi! ..;:i* 43 "' 3;itg13,4:,..trait,1'% 4.-`,. 1,;4.- 4 i it ., ,,, ri'Vf.11.1 E., ,,,i..,......, f'-' t t_r_ , , IF , A,, 1- '7 (m1; RIA-I AV ' • I's; LI 174.°17P.4%.7/1k- '''' 'P ' ".....". Ts,,,I-;. ,1" 'allst AN VIEW i3C-7..._ ‘ 4.' 1:4',' :414ilpfi IliplliWritsINE DR 1201(-474 A LI ' NI ER31 / T, AV .„xr ' • I, 0 . - , ill! ieq ' iiLr 44,4i. Vith 1 ---i •,i, 4 riln v4' ...1 int - i,m- BRoACMAy ' r -',ivialll EBB Id 'SP. OCTOBER BUS FLYERS It a•n,i cued 20 Years of icy,. ..s Saturday, October 22, 2005 10:00 a.m. - 3:00 p.m. At the NEW National City Public Library 1401 National City Blvd. RUT Irma (mom !ELECTED !CIIOOL!) ROOK! (WITH A READING IT FUNDAMENTAL COUPON) CAME! FOR KID! Food for Sale Proceeds to individual non-profit organizations Chili & Salsa. Tasting Proceeds to the NCPL Literacy Services Program For More Information CALL 619-470-5860 or 619-470-5861 ADMI!lION itS4S ENTERTAINMENT ZONAL THE Ci-IAMBER '1111111 Pit OP CA 901 National City Boulevard National City, CA 91950-3203 Business: 619 477-9339 Fax: 619 477-5018 Email: thechamber@nationalcitychamber.org WEBSITE: WWW. NATIONALCITYCHAMBER.ORG PROPOSED SALES TAX INCREASE The National City Chamber of Commerce Board of Directors voted Tuesday, September 13th to support passage of Proposition B which authorizes a 1 cent sales tax increase to fund National City services. The Chamber Board vote was 15 in favor, none opposed, and two abstentions. John Webster, Chamber President, said, "The need to support National City public safety services and the negative impact of a potential 20 percent city budget reduction greatly influenced our vote." You are invited to a Prop B information session on Thursday, October 20 from 12-1:30 pm at the National City Holiday Inn in the Nautilus Room. For more information, contact Carolyn Kruse at (619) 477-9339 or Nancy Mendoza at (619) 477-8512. American Diabetes Association Mayor Ni H<Inzunza Feria Cna,roerson yruntvISfOn Assemblyman Juan 'Vargas. Feria Honorary Chairperson UNIDOS CONTRA LA DIABETES A4k 44'r ,P .„ Mstca MjE°E e � EL EL CO CO)1,N — Sed excesiva . 3rinar frecuenter - Tatiga extre #'� ipn iubliada . a Perdido de peso •I Heridas nu ne saran cc-1.41L-)L41.< °ZIP' Premios Prami�c Variedades Kimball Park, National City 10 a.m. to 3 p.m. ingo 6 de Noviembre, 2005 i®rinigder�nelos pies IEVALUACIONES E INFORMACKON GRATIS! Diabetes • Presion sanguinea Colesterol • Pies y vision • Vacunas de gripe • y SPONSORED BY: C (I) NOVA RTIS AIVIYLIN ry Eli Lilly and Company NATIONAL CITY FAMILY CLINIC VA 6 5FM medical Center Pharmacy novo nordis0 PROTECT DULCE". DIABETESL\CELLENCE ACROSS COMMCNRmES I it 4 AID SOUTHWEST' soutnwest.com %vemonose bkffil wunivision Paradise Valley Hospital KPBS Progressive Qrtho American Diabetes Association® I;9ayx Niol: inzar€a Feria Cnavaerson IunivIsIon Assembiyman Juan Vargas. Feria Honorary Chairperson U DOS CONTRA .LA DIABETES 041 c=0-- Ctt, Music �pG� Prizes Entertainment Kimball Park, National City 10 a.m. to 3 p.m. Sunday, November 6, 2005 Know the syniptoms: • Excessive thirst • Frequent urination • Extreme fatigue • Blurred vision Weight bass Wounds that don't heal ngling in ttiL feet Il=oll ORE IlN1FORMATi IION PLEASE.CAL L: FREE SCREENING AND INFORMATION • Diabetes • Blood Pressure • Cholesterol • Foot, Eyes • Fill Shots • and more... SPONSORED BY: Eli Lilly and Company �ts�ogb. NATIONAL CITY FAMILY CLINIC rgarb 6.5E l Medical Center Pharmacy nova nordiskQ PROTECT DUt CF" U:OB:TESY\Cr1.LENCE ACROSS COMMUNI i It5 SOUTHWEST' sou±RHWe St.com/vamonos" Bill unlvlslon Paradise Valley Hospital KPBS Progressive Grtln ATTACHMENT B TAKE ONE NOTICE OF COMMUNITY OPEN HOUSES TAKE ONE Community Meetings for Comprehensive Operational Analysis of Metropolitan Transit System Bus and Trolley Services. THIS INFORMATION WILL BE MADE AVAILABLE IN ALTERNATIVE FORMATS UPON REQUEST. To request this notice in an alternative format, please call (619) 231-1466. The Metropolitan Transit System operators adhere to a nondiscrimination policy with regard to both services and facilities. The San Diego Metropolitan Transit System (MTS) is conducting a Comprehensive Operational Analysis (COA) of its bus and trolley services The project is divided into two phases: the first phase was implemented in summer 2005 and optimized the system to improve efficiencies to achieve a balanced operating budget. The second phase will seek to redevelop and optimize transit services to better reflect travel demand patterns and reduce trip times. This second phase is currently being developed and the results will affect the majority of MTS bus and trolley services; including substantial schedule and routing changes. Adopted proposals from the COA will be implemented beginning in June 2006. MTS is holding a series of community meetings to provide information on proposed system, route, and schedule changes. MTS passengers, area residents, business owners, and other interested individuals are encouraged to attend one of the following community meetings, held in different locations throughout the MTS service area: Old Town Transit Center Nov. 1, 2005, 4-6:00pm North Park Rec Center Nov. 15, 2005, 6-3:OOpm 4044 Idaho Street, San Diego Malcolm X Library Nov. 18. 2005, 5:30-7:30pm 5148 Market Street, San Diego H Street Trolley Station Nov. 11, 2005, 4-6:00pm Southwestern College. Bldg 750 Nov- 10. 2005. 6 2:00pm 900 Otav Lakes Rd.. Chula Vista Downtown Information Center Nov. 2, 2005, 11am-1pm 225 Broadway, San Diego San Diego Mesa College, H117 Nov. 8. 2005, 6-8:00pm 7250 Mesa College Dr., San Diego Mira Mesa Community Center Nov. 17, 2005, 6-8:00pm 8575 New Salem St.. San Diego Fashion Valley Transit Center Nov. 4, 2005, 4-6:00pm Doyle Park Community Center Nov. 14, 2D05, 6:15-8:00pm 8175 Regents Road. San Diego R. Reagan Community Center Nov. 9, 2005, 0 2:00pm 195E Douglas Ave.. El Cajon Iris Trolley Station Nov. ? 2005. 6:0Com Locations dates and times are subject to change. Interested persons are encouraged to call 619-595-3711 or visit us online at w'jvwsdcommute-corn for more information on the COA, con -Triunity meeting updates and MTS sriices. tF c YR Ks Ow KS