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HomeMy WebLinkAbout2009 08-18 CC CDC AGENDA PKTAgenda Of A Regular Meeting - National City City Council / Community Development Commission of the City of National City Council Chambers Civic Center 1243 National City Boulevard National City, California Regular Meeting - Tuesday - August 18, 2009 - 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 and Community Development Commission (CDC) 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/Executive Director any matter that you desire the City Council or Community Development Commission Board to consider. We thank you for your presence and wish you to know that we appreciate your involvement. ROLL CALL Pledge of Allegiance to the Flag by Mayor Ron Morrison Public Oral Communications (Three -Minute Time Limit) NOTE: Pursuant to state law, items requiring Council or Community Development Commission action must be brought back on a subsequent Council or Community Development Commission Agenda unless they are of a demonstrated emergency or urgent nature. Upon request, this agenda can be madeavailable 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 (619) 336-4228 to request a disability -related modification or accommodation. Notification 24-hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Spanish audio interpretation is provided during Council and Community Development Commission Meetings. Audio headphones are available in the lobby at the beginning of the meetings. Audio interpretation en espanol se proporciona durante sesiones del Consejo Municipal. Los audiofonos estan dlsponlbles en el pasillo al princlplo de la Junta. Council Requests That AU CeII Phones and Pagers Be Turned Off During City Council Meetings COPIES OF THE CITY COUNCIL OR COMMUNITY DEVELOPMENT COMMISSION MEETING AGENDAS AND MINUTES MAY BE OBTAINED THROUGH OUR WEBSITE AT www.nationalcitvca.aov CITY COUNCIUCOMMUNITY DEVELOPMENT COMMISSION AGENDA 8/18/2009 - Page 2 PROCLAMATION 1. Proclaiming August 16 - 17, 2009 as: "RELAY FOR LIFE DAY" PRESENTATIONS 2. Employee of the Month of August, 2009 - Jim Ridley - Community Development Specialist 3. Presentation on the draft background report for the comprehensive update of the General Plan and Land Use Code. (Community Development) 3a. Recognition of Brittany Gomez, Miss National City 2008-2009 CITY COUNCIL 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. 4. Approval of the Minutes of the City Council / Community Development Commission Adjourned Regular Meeting of May 26, 2009 and the Regular Meeting of June 16, 2009 (Corrected). (City Clerk) 5. Resolution of the City Council of the City of National City accepting conveyance of View Corridor, Public Path, Public Bicycle Access, Public Access, and Parking Easements from the property owner, Marina Gateway Development Company, directing the recordation of a View Corridor, Public Path, Public Bicycle, Public Access, and Parking Easements for public use purposes on the southwest side of Bay Marina Drive and the Inter -State 5 Freeway. (2008-23LS) (Development Services/Engineering) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 8/18/2009 - Page 3 CONSENT CALENDAR (Cont.) 6. Resolution of the City Council of the City of National City accepting the work performed by Industrial Coating and Restoration Services with the final amount of $46,535.00 and authorizing the filing of the Notice of Completion with the County Recorder for the National City Police Department Security Fencing Installation Project. (Funded through Supplemental Law Enforcement Service Funds) (Development Services/Engineering) 7. Resolution of the City Council of the City of National City accepting the work performed by Industrial Coating and Restoration Services with the final amount of $44,100.00 and authorizing the filing of the Notice of Completion with the County Recorder for the National City Police Department Bullet -Resistant Glazing/Paneling Project. (Funded through Justice Assistance Grant Funds) (Development Services/Engineering) 8. Resolution of the City Council of the City of National City approving contract agreement with Wade & Associates for construction management services for the Marina Gateway Streetscape Project in the amount not -to -exceed $127,089 and authorizing the Mayor to execute the Agreement. Funds are available in the Tax Increment Fund. (Development Services/Engineering) 9. Resolution of the City Council of the City of National City adopting the Sanitary Sewer Management Plan (SSMP), as required by State Water Resources Control Board Order No. 2006-003 and developed by City, as per City Council Resolution No. 2007-246. (Public Works) 10. Resolution of the City Council of the City of National City approving an Operating Agreement between the National School District and the National City Public Library to provide a Before and After School Education and Safety Program with the Library to receive $979,698 annually. (Library) 11. Resolution of the City Council of the City of National City ratifying the acceptance of a $76,380 grant from the California State Library to fund the California Library Literacy Services AmeriCorps Initiative Project for Fiscal Year 2009-2010. (Library) CITY COUNCIUCOMMUNITY DEVELOPMENT COMMISSION AGENDA 8/18/2009 - Page 4 CONSENT CALENDAR (Cont.) 12. Resolution of the City Council of the City of National City amending the agreement between the City of National City and Meyers Nave Professional Law Corporation expanding the scope of services and adding a not to exceed limit of $25,000 for labor negotiator legal services. (Human Resources) 13. WARRANT REGISTER #3 Warrant Register #3 for the period of 07/15/09 through 07/21/09 in the amount of $1,158,876.18. (Finance) 14. WARRANT REGISTER #4 Warrant Register #4 for the period of 07/22/09 through 07/28/09 in the amount of $2,319,078.31. (Finance) NON CONSENT RESOLUTIONS 15. Resolution of the City Council of the City of National City authorizing the investment of $1 million in the Certificate of Deposit Account Registry Services (CDARS) Program with Neighborhood National Bank. (Finance) 16. Resolution of the City Council of the City of National City approving and authorizing issuance of a Written Report pertaining to a Moratorium Ordinance prohibiting establishments dispensing marijuana for medical purposes in National City. (City Attorney) PUBLIC HEARING 17. Public Hearing — Street Vacation and Coastal Development Permit to vacate an unimproved alley to restrict public access south of West 23rd Street and north of Bay Marina Drive in the Coastal Zone. (Case File No. 2009-04 SC, CDP) (APNs 559-117-04 to 07 & 12) (Development Services/Planning) CITY COUNCILJCOMMUNITY DEVELOPMENT COMMISSION AGENDA 8/18/2009 - Page 5 NEW BUSINESS 18. Temporary Use Permit - Baptism and BBQ sponsored by Cornerstone Church of San Diego at Las Palmas Park on August 23, 2009 from 12 p.m. to 8 p.m. with no waiver of fees. A Facilities Use Permit is required for the use of the Municipal Pool. (Neighborhood Services) 19. Temporary Use Permit - Integrity Charter School's Physical Education program at Kimball Park from 7:15 a.m. to 8:45 a.m. and 1 p.m. to 2:15 p.m. commencing September 9, 2009 thru June 18, 2010 with no waiver of fees. Note: A Field/ Facilities Use Permit will also apply. (Neighborhood Services) 20. Temporary Use Permit - "Celebrating Community" Block Party hosted by the One In Christ/River of Life Church on September 12, 2009 from 11 a.m. to 4 p.m. with no waiver of fees. (Neighborhood Services) 21. Temporary Use Permit - 17th Annual Fiesta Filipiniana Karaoke Competition hosted by the Seafood City Supermarket on September 26, 2009 from 10 a.m. to 10 p.m. at 1420 Plaza Blvd. with no waiver of fees. (Neighborhood Services) 22. Temporary Use Permit - Pumpkin Station hosted by Pinery Christmas Trees at Plaza Bonita from September 25, 2009 to October 31, 2009 with no waiver of fees. (Neighborhood Services) COMMUNITY DEVELOPMENT COMMISSION CONSENT CALENDAR 23. Authorize the reimbursement of Community Development Commission expenditures in the amount of $33,664.24 to the City of National City for the period of 07/15/09 through 07/21/09. (Finance) 24. Authorize the reimbursement of Community Development Commission expenditures in the amount of $706,870.09 to the City of National City for the period of 07/22/09 through 07/28/09. (Finance) CITY COUNCIUCOMMUNITY DEVELOPMENT COMMISSION AGENDA 8/18/2009 - Page 6 CONSENT CALENDAR (Cont.) 25. Resolution of the Community Development Commission of the City of National City approving the Section 8 Management Assessment Program (SEMAP) for Fiscal Year ending June 30, 2009 and authorizing the submittal of the SEMAP to the U.S. Department of Housing and Urban Development. (Community Development, Housing and Grants, Section 8 Program) 26. Resolution of the Community Development Commission of the City of National City approving use of $669,653 in Low Moderate Housing Funds and $1,110,347 in HOME Investment Partnerships Program funds for the permanent financing of the Casa Familiar, Incorporated Acquisition and Rehabilitation Project located at 1101-1119 E Avenue and 1111 D Avenue. (Community Development/Housing and Grant Division) NON CONSENT RESOLUTION 27. Resolution of the Community Development Commission of the City of National City approving a GAP loan to Casa Familiar, Incorporated for $835,000 to complete the acquisition and rehabilitation of the Casa Quinta apartments located at 304 East Fifth, National City funded by and subject to affordability requirements of the HOME Investment Partnerships Program. (Community Development/Housing and Grant Division) NEW BUSINESS 28. A report: US Environmental Protection Agency (EPA) Brownfield Assessment grant for the Westside Specific Planning area. (Redevelopment Division) 29. Real property transaction for former Days Inn Site: 1.07-acre parcel located at 1640 East Plaza Boulevard (A.P.N. 557-410-200). (City Attorney) STAFF REPORTS 30. Housing Activity Update. (Community Development/Housing and Grant Division) 31. Closed Session Report. (City Attorney) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 8/18/2009 - Page 7 MAYOR AND CITY COUNCIL ADJOURNMENT Next Regular City Council and Community Development Commission Meeting - Tuesday - September 1, 2009 - 6:00 p.m. - Council Chambers - National City Item #1 08/18/09 WHEREAS, Relay For Life is the American Cancer Society's signature activity. It offers everyone in the community an opportunity to participate in the fight against cancer. Teams of people camp out at National City's Kimball Park and take turns walking or running around the path. Each team is asked to have a representative on the path at all times during the event. Relays are an overnight event, up to 24 hours in length; and WHEREAS, Relay For Life is a life -changing event that brings together more than 3.5 million people to celebrate the lives of those who have battled cancer, remember loved ones lost to the disease and to fight back against cancer; and WHEREAS, over $S0,000 was raised during the American Cancer Society Relay For Life last year, at National City which helped support research, education, advocacy and patient services; and WHEREAS, Relay for Life represents the hope that those lost to cancer will never be forgotten, that those who face cancer will he supported and that one day cancer will be eliminated; and THEREFORE, as Mayor and City Council, by virtue of the authority vested in us by the City of National City, do hereby proclaim August 16 - 17, 2009 as: RELAY FOR LIFE DAY We call upon all citizens of National City to take a moment to commemorate Relay For fife for their continuous support and dedication to the community. ,,''''Cr2"Ron Morrison Mayor e Mayor "Rosalie G. Counrilwoma Francisco `ht7i7iTt"Parra Councilmember CI Jess Van Deventer Councilmember MEMORANDUM GAL.IFORR�NIIA„ FIO ` ' C lT T..CORPORATED August 4, 2009 TO Chris Zapata. City anager FROM : Stacey Stevens. iman Resources Director SUBJECT EMPLOYEE OF THE MONTH PROGRAM RLuuvtu AUG 0 6 Z009 Item 12 08/18/09 The Employee of the Month Program communicates the City's appreciation for outstanding performance. In doing so, it recognizes employees who maintain high standards of personal conduct and make significant contributions to the workplace and community. The employee to be recognized in August 2009 is Jim Ridley — Community Development Specialist By copy of this memo, the employee is invited to attend the Council meeting on Tuesday, August 18, 2009 to be recognized for his achievement and service. Attachment cc: Jim Ridley Alfredo Ybarra — Community Development Manager Dionisia Trejo — Mayor/Council Office Josie Flores -Clark — Confidential Assistance Human Resources — Office File SS:Igr Performance Recognition Program (2) Human Resources Department 140 E. 12'" Street, Suite A, National City, CA 91950-3312 619/336-4300 Fax 619/336-4303 www.nationalcit ca. ov Y 9 City of National City AUG 04 2009 Recognition Award �� can. os �; MA�RESOURCES (�T Performance RCEs r�Er�AR rmE\ Nomination Form I nominate for the Performance Recognition Award for the following reasons: Please state reason why your nominee should receive an award, (i.e., examples of service beyond requirements of position, exemplary service to the public, outstanding job performance, etc). Do not to exceed 150 total words. Please be as specific as possible when giving your examples. 1.+^ t�'Loap)-ast�v ed. �,,;,n, ic-t, NINA& '�ed�nyl�rn.es vcwA* Qatar C..3 tiedc % \ vtt\\,cA \I.N3b t��ccw..-- 'CL^;S d cu,r^ar Kook wkasAA ekkgaevirri dtmv e 3 year vec,ob &t 4\AP ycy+A' tAPce-e~S NtIc * e ���� o T\1G C. NrNbr �t)D users 4 rc-Lvr W t'Ar-temercc N 1u‘R+wir�►n� G ONP-�prtl- screinsokn 11w.. r v- rrwr.. G'owiw+.4 Nna.a1� A`o 0-Jovrr 1rAfrin t rod.LLTLnr^ c..^d, yawC- pukrfrwt Ne arept.esk ,r alsot. Ata.A1 t,�er^ rrL.t v►,ar.t.,k e�,^al\engb 4\ve %m,nk r►oviXcd _ \mac weal-esk einclkitcLA et/4 ktre ess l,A"T bolel 0- StIreil eakonrw�litU.L 4TKCVK till 4 0 tte F4CIOCT012r1 `e, e <'Cvet wid .rnGP 1re recAlrr s.,l avtel L(biz -et,s kL fir, e tsv -c '�#L.t riAV1.1tAC c C trkeert4W4l1 , Vrett . Crow^ 'fit irogt'aw Iotavvrttif 1/4-s Corn.otrL D4 rfOvawt 1peas r2tflci1 t.OVitA \�ct)�D wort \-AA4 ti1ti cot-iciAC.tt Lid 114terrrtal. d�Qa ttcsat4 �sdUeM 3 Pgvc (D� tn,tl�-S o� a.YOS<t`Y�X 'o 'NUvi11� 114.A.iS scav^sc -L•e a `so�.s caKIC ►v W. .. 1� t T G orG�.e cc‘r2E ��lSJek ��\.__� touuktv5 lnc.derslet. e�tncoi ct es vnwt t-tr-t..e,a-k e(ce.oll.Qtnce r.vid tseAr g vovs.cL i eT1���1fnwLivtc��1 e-Jigrotn of s O.rV Ir.!_ 1 inn �pCOLfr w,NK V�o lOI.�` t r . J t �✓1 � i p� f u �J1^CU i -e.vvi a titd b� At/ j/1A CVA FORWARD COMPLETED NOMINATION TO: Nominated by: Sign National City Performance Recognition Program �� Human Resources Department �v3(o `tLar✓c.l &V."Ina 4LI td "teut\oyivvvek WA jr Date: 'l 13, 10 City of National City, California CITY COUNCIL AGENDA STATEMENT • MEETING DATE August 18, 2009 (ITEM TITLE AGENDA ITEM NO. 3 PRESENTATION ON THE DRAFT BACKGROUND REPORT FOR THE COMPREHENSIVE UPDATE OF THE GENERAL PLAN AND LAND USE CODE. PREPARED BY DEPARTMENT Raymond Pe, AICP 336-42504 Community Development EXPLANATION On June 16, 2009, the City Council approved an agreement with Project Design Consultants (PDC) to provide consultant services for the comprehensive update of the General Plan and Land Use Code. The consultant scope of work includes the preparation of a background report with findings and recommendations to be used for the update. The consultant agreement also required PDC to develop and manage a fellowship program, which accepted nine senior/graduate students from several universities. The work on the background report was conducted by the student fellows under the direction of PDC and the City. The next phase of the update will include public outreach, joint City Council meetings with the Planning Commission and National School District, the retention of subconsultants for the preparation of technical studies and the environmental impact report, and public workshops. The process to update the General Plan and Land Use Code will take approximately two years with adoption in late 2011. ENVIRONMENTAL REVIEW Not applicable. FINANCIAL STATEMENT Not applicable. Approved By: Finance Director Account No. / STAFF RECOMMENDATION Accept and file the report. BOARD / COMMISSION RECOMMENDATION Not applicable. / 411[1, ATTACHMENTS (Listed Below) A-200 (9/99) Resolution No. Item A4 08/18/09 Approval of the Minutes of the City Council / Community Development Commission Adjourned Regular Meeting of May 26, 2009 and the Regular Meeting of June 16, 2009 (Corrected) (City Clerk) City of National City, California COUNCIL AGENDA STATEMENT EETING DATE August 18, 2009 AGENDA ITEM NO. 5 ITEM TITLE A Resolution of the City Council of the City of National City accepting conveyance of View Corridor, Public Path, Public Bicycle Access, Public Access, and Parking Easements from the property owner, Marina Gateway Development Company, directing the recordation of a View Corridor, Public Path, Public Bicycle, Public Access, and Parking Easements for public use purposes on the southwest side of Bay Marina Drive and the Inter -State 5 Freeway (2008-23LS) PREPARED BY Adam Landa DEPARTMENT Development Services/ EXT. 4394 Engineering Division EXPLANATION Marina Gateway Development Company, the owner of the property on the southwest side of Bay Marina Drive and Inter -State 5 Freeway, has submitted a Parcel Map with view corridor, public path, public bicycle access, public access, and parking easements dedication. The owner is requesting that the City Council accept and approve the easements dedication. The easements will be maintained by the owner per Disposition and Development Agreement by and between the Community Development Commission of the City of National City and Marina Gateway Development Company, LLC and Sycuan Tribal Development Corporation. See attached Section 403, (Maintenance Covenant) of the agreement (Attachment A). There is a new hotel, restaurant and business buildings on the site. The dedication is part of the development Resolution and the parcel map has been reviewed and signed by the City. The view corridor, public path, public bicycle access, public access, and parking easements shall be filed with the County Recorder when the City Council has approved it. J Environmental Review X N/A MIS Approval Financial Statement N/A Approved By: Finance Director Account No. STAFF RECOMMENDATI 0 olution. RD / COMMIS ION E MMENDATION N/A ATTACHMENTS (Listed Below) Resolution No. 1. Resolution 2. Parcel Map 3. Attachment A A-200 (Rev. 7/03) marlmaa RESOLUTION NO. 2009 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ACCEPTING THE DEDICATION OF VIEW CORRIDOR, PUBLIC PATH, PUBLIC BICYCLE ACCESS, PUBLIC ACCESS, AND PARKING EASEMENTS FROM THE PROPERTY OWNER, MARINA GATEWAY DEVELOPMENT COMPANY AND DIRECTING THE RECORDATION OF A VIEW CORRIDOR, PUBLIC PATH, PUBLIC BICYCLE, PUBLIC ACCESS, AND PARKING EASEMENTS FOR PUBLIC USE PURPOSES ON THE SOUTHWEST SIDE OF BAY MARINA DRIVE AND THE INTERSTATE 5 FREEWAY (PARCEL MAP NO. 2008-23-LS) WHEREAS, Marina Gateway Development Company, the Owner of the property on the southwest side of Bay Marina Drive and Interstate 5 Freeway, has submitted Parcel Map No. 2008-23-LS, with the dedication of view corridor, public path, public bicycle access, public access, and parking easements. The Owner is requesting that the City Council accept and approve the dedication of easements; and WHEREAS, the easements will be maintained by the Owner per the Disposition and Development Agreement by and between the Community Development Commission of the City of National City and Marina Gateway Development Company, LLC and Sycuan Tribal Development Corporation; and WHEREAS, the dedication appears on the Parcel Map, which has been reviewed and signed on behalf of the City. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby accepts from the Owner the dedication of view corridor, public path, public bicycle access, public access, and parking easements, as shown on Parcel Map No. 2008-23- LS and located on the southwest side of Bay Marina Drive and the Interstate 5 Freeway, directs the execution of a certificate on the Parcel Map accepting said easements, and directs the recordation of the Parcel Map dedicating said easements. PASSED and ADOPTED this 18th day of August, 2009. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk George H. Eiser, Ill City Attorney PARCEL MAP NO. OWNER'S STATEMENT WE ARE THE OWNERS OF 0R ARE INTERESTED IN THE PROPERTY COVERED BY THIS MAP AND HEREBY -0N5ENT TO SAID MAP AND THE FILING THEREOF. NE HEREBY DEO/C4TE TO INC PUBLIC FHT USE, SUBJECT 70 IAVRO ✓EMENT. THE PUBLIC ACCESS EA$,. MEN7, THE EASEMENT AND MAINTENANCE FOR PUBLIC PATH 1; BE MADE ACCE55ABLE FOR THE GENERAL PUBLIC AND TTIE PJ0L1C EASEMENT FOR 15 PUBLIC BICYCLE PARKING SPACES NH!CN SHALL BE MAINTAINED AIM, RESERVED FOR THE GENERAL P'JBLi., ALL AS 5HONA( ON THIS MAP, NE HEREBY DEDICATE 70 THE CITY .5 v4TONAL CITY A PERPETUAL CASEMENT AS SHOWN THIS MAP ANC PURSUANDESIGNATED 70 7NE HARBOR HEREON AS E0l5/R/[I' .'EA A PECIFIC PLAIN AS SHOWN ON THIS MAP, LANOSCAP-A ,N SAID CORRIDOR SHALL BE MA07A/WED BELOW 20 FO 7 HE10N7 LIMIT. NE HEREBY RESERVE THE PRIVATE ACCE15 AND UTILITY EASEMENT FOR OURSELVES AND ASS/ENS, AS SHOWN ON THIS MAP. NE HEREBY AGREE 70 RESTRICT THE SALE 0E PARCEL 1AN0 2, INOIVIOUALLY, 50 LONG AS A HOTEL DR OTHER STRUCTURAL IMPROVEMENT SPANS PARCELS LAND 2, AND SHALL ONLY SELL OUR INTEREST IN BOTH PARCELS TO THE SAME ENTITY OP ENTITIES. AA C21FCJAVI41IM1TEDLL BILIJYC C04°A4IJYLC, BY, NAME' TITLE, BY5 NAME( TITLE/ PCB SER ✓ICE CORPORATION, TRUSTEE LACER DEEDS OP TRUST RECORGEO MAY 22, 2008 AS FILE N0. 1009.0276453 OF OFgC1AL RECORDS Br BY WANE, NAME, TITLEL 1171EL ACKNOWLEDGEMENT STATE OF CALIFORNIA) COUNTY Jf ..............1 ON BEFORE ME PERSONAL41 APPEARED NA9 PROVED TO ME ON THE BASIS Of SATISFACTORY Ev10ENCE TO BE THE PERSONS! WHOSE NAMEFS) IS/ARE SUBSCRIBED TO THE WITHIN INSTRUMENT AM) ACKNOWLEDGED TO ME THAT NE/SHE/THEY EKECUTE0 THE SAME IN HIS/HER/THEIR AUTHOR/ZED CAPAC/7YY/ESA AN0 THAT BY HIS/HER/THEIR S/DNA IURE(5) ON THE INSTRLLMEN7 THE PERSON'S, OR THE ENTITY (POI BEHALF Of WHICH INE PERSONS) ACTED, EXECUTED THE INSTRUMENT. !CERTIFY LNDER PENALTY OFF PER.4/R7 UNDER THE LANS OF THE 'TAIL' OF CALIFORNIA THAT THE FOREGOING PARAGRAPH I5 TRUE AN0 CORRECT. WITNESS MY HAND. Sl6NA 7URE (PRINT NAME) NOTARY PUBLIC IN ASO FOR SAID STATE PRINCIPAL PLACE 0/ BUS/MESS 15 COUNTY OF MY COMMISSION/ EXPIRES 56SI FM. BIYW IAN DIFCO, CR92110 619.2510707 N0P1861.0 OMYAWT (IAYI61f If1A166 MARINA GA TEWA Y CASE FILE H0, 1COB-23 LS, IN THE CITY 0f NATIONAL cote. COUNTY OF SAN 01EG0, STATE OF CALIFORNIA PARCEL MAP OF THOSE PORTIONS OF 5LOCRS 232. 261 AND) 141E TOGS TNER nth THOSE PORTIONS OF 25TH STREET, 261H STREET AND CLEVELAND AVENUE IFORMERLN 41N 4vEN'UE), OF NATIONAL CITY ACCOROINC TO MAP THEREOF N0. 39B, AND TNCSE PORTION'S DETRACTS 91'AN0 IMF CHAMBER OF CgdIERCE INDUSTRIAL LANDS N0, !ACCORDING TO MAP THEREOF ,110E 'AST 5A10 M4P5 BEING RECO4D(0 1N 4E OFFICE 0f THE C0LN1Y RECORDER OF SAN 01E00 COUNTY, ALL M INE CPT OF NATIONAL CUTY, COUNTY OF SAN DIEGO, 5/ATE OF CALIFORNIA. PARCEL MAP GUARANTEE PREPARED BY: STEWART TITLE I@' C4LIFORNaa, INC. ORDER NC.2162/2 ON SIGNATURE OMISSION STATEMENT THE 5.<CNATURES OF THE FOLLOWING PARTIES HALVE BEEN OMI11E0 LNDfR THE PROVISIONS OF SECTION 66436, SUBSECTION ro11311A1111 OF 7NE SUBDIVISION MAP ACT, THEIR INTEREST IS SUCH THAT 17 CANNOT RIPEN IN7C A FEE 7771E AND 5A10 S/ONA 1URE5 ARE NOJT REOL'1RE0 BY THE GOVERNING BOOT. t046622 BROTHERS WATER COMPANT HOLDERS SOF AN EASEMENT DATED JUNE 9, /269, RECORDED IN BOOK T PACE 124 OF 6YE05 1. NATIONAL CITY PACKING COMPANY, HOLDER DF MM EASEMENT RECORDED DECEMBER 141927 IN BOOK 1419, PAG.T 65 OF DEEDS. J. F.N.A. VESPER AND NATIONAL CITY DEHYCRATIIRC COMPANY, HOLDER OF AN EASEMENT DATED NOVEMBER 1, 1946 IN BOOK 226E PACE 3,62 AS INSTRUMENT NO. MOM OF OFFICIAL RECORDS. 4.5AN DIEGO CAS 6 ELECTRIC COMPANY HOLDER OF EASEMENTS RECORDED APRR /7, 973 AS INSTRUMENT N0, 73- 101114E RECORDED 0C70BER 2L 975 A5 INSTRUMENT NO T5-190644 AND RECORDED NOVEMB£R 3, 200E AS INSTRUMENT N0. 2006-0373316, ALL OF (OFFICIAL RECORDS. ACKNOWLEDGEMENT 51A/E OF CALIFORNIA, CCLNTT OF ON BEFORE NE PER50NALLI" APPEARED NHO PROVE0 TO ME ON THE BASIS OF 5A71SF4C10RY EVIDENCE TO BE TRF PERSONS, WHOSE NAMEIS) 15/APE SUBSCRIBED TO THE WITHIN INSTRUMENT AND ACKNOWLEDGED IC ME THAT YE/SHE/THEY EXECUTED THE SAME IN HNS/HER/THEIR AUTHORIZE() CAPAC(T7(1E31. AND INA7 BY NS/HER/THEIR SIGNATURE'S, ON THE 1N51RUMElNT THE PEN504'S1 OR THE ENTITY UPON BEHALF OF WHICH THE PERSOM'S) ACTED. EXECUTED THE INSTRUMENT. CERTIFY LNOER PENALTY CP PERJURY UNDER THE TANS OF THE STATE OF CAi1F04N1A THAT THE FOREGOING P4R4CRA%1 /5 TRUE AND CCRREC1. FITNESS MY NANO. SIGNATURE (PRINT NANO) NOTARY PUBLIC /N AND FOR SAID STATE PRINCIPAL PLACE CF BUSINESS IS CC11A77 OF MY CLVAM155/Clr EXPIRES CITY 'S CLERK CERT/FICATE N£, RCN MORR150N, MAYOR AND MICHAEL R. DALLA, CT1V CLERK OF NATIONAL CITY, CALIFORNIA, HEREBY CERTIFY THAT THE CITY COUA'C1L HAS APPROVED THIS PARCEL MAP CN BY RESOLUTION NC. 4N0 H45 ACCEPTED THE V1EN CORRIDOR EASEMENT AND ON BEHALF OF THE PUBLIC, SUBJECT TO IMPROVEMENT, IRE PURL IC ACCESS EASEMENT, THE EASEMENTS FOR PUBLIC PAIN, 4N0 TNE PUBLIC LUCY CIE PARKING EASEMEN1, ALL A5 OEOIC4 TE0 HEREON. RON MORRISON DATE MICNAEL R-DAL LA DATE MAYOR CITY CLERK SHEET 1 OF 4 SHEETS SURVEYORS CERTIFICATE THIS MAP NAS PREPARED BY ME OR UNDER MY DIRECTION AND IS 51PEU5 5 DIVISION MAP ACT AND LOCAL OP0/N4NCE 47 THE PEOUES7 OF OF MARINA GATES,' DEVELOPMENT COARANY, LLC IN FEBRUARY OF 200B. I HEREBY VATS' WI THIS PARCEL MAP SUBSTANTIAL( Y CONFORMS TO INE APPROVED OR C0NOIi/ON4LLY APPROVED TENIAIEME MAP, 1F ANY, AND THAT ALL MO4UMENTS ARE OF TR( CHARACTER INDICATED AND OCCUPY THE POSITIONS SHOWN THERE. l BILL SET ALL OTHER AgNUMEM5 OF CHARACTER AND AT POSITIONS INDICATED BY THE LCOEN0 IN III15 MAP N/TH1N 90 DAYS OF THE RECORDATION OF 7H15 MAP, AND ALL SUCH MONUMENTS ARE Si SILL BE SUFFICIENT E LEGEND 9H E TN2D, ABLE THE SURVEY TO BE RETRACE PATRICK 4. MCMICNAEL, L.S. SST LICENSE EXPIRES J-31-2010 CITY ENGINEER STATEMENT HEREBY STATE THAT 1H15 M4P N45 EXAMINED BY ME OR WIDER MY DIRECT SUPERVISION AND THAT THIS MAP DOES NOT APPEAR TO BE A MAP OF A MAJOR SUBOIV/51ON FOP NIMCN 4 FINAL M41 1S REOU/REO PW15U4N1 TO SECTION NE426 OF THE SUBDIVISION MAP ACT. l FURTHER 51ATE THAT THIS PARCEL MAP SUBSTANTIALLY CONFORMS 10 THE TENTATIVE PARCEL MAP, /F ANY AND ANY APPROVED AL 7ERA 7/CN5 THEREOF, THAT IT COMPLIES WITH IRE REQUIREMENTS OF THE 50B01Vl5l0N MAP ACT ANC ANY LOCAL ORDINANCES APPLICABLE. M4RIAN BAB/AK/. car ENGINL(R BY, MARYAM EXPIRE; R,E.E, 01 91735 LICENSE EXPIRES 3-JI-2Cro DA LEDs I AM SATISFIED THAT SAID MAP 15 TECHNICAL( Y CORRECT, HUY N0OC MOLTEN PLS N0.B421 LICENSE EXPIRES 1141-2009 DATED CLERK OF TNE BOARD CERTIFICATE G THOMAS ,4 PASIUSZKA, CLERK OF THE BOARD OF SUPERVISORS HEREBY CERTIFY THAT THE PROVISIONS OF THE S1140/V/5/CM M4.° 4C7 (DIVISION 2 OF TITLE 7 OF THE GOVERNMENT COCE1 REGARDING (Al DEPOSITS FOR TAXES AND all CERTIFICATION OF THE ABSENCE OF LIENS FOR WYPA'D STATE COUNTY, MUNICIPAL OR LOCAL TAXES OR SPECIAL ASSESSMENTS COLLECTED AS TAXES EXCEPT TN05E NOT YET PAYABLE, NAVE BEEN COMPLIED M77H. AROMAS J. PAS TUSEKA CLERK OF THE BOARD OF SUPERVISORS BY, DEPUTY DATE, RECORDER'S CERTIF/CATS FIG' I/0. FILED THIS Dar OF , 2003 AT O'CLOCK _ M. IN BOOK OF PARCEL MAPS AT PAGE _ A / THE REQUEST OF PA TRUCK A. MCMICNAEL. DAVID L. BUTLER BY COUNTY RECORDER DEPUTY FEE, 4 16,00 ,I<l.nfln...ln, l<om M Pup PROJECT MEMBER 14497A T.M. N0. 2008.23. LS ICAO I FORM A C00R0I NATE INOE% 170-1757 PARCEL MAP NO. p \\ rFO ,NO AS➢NAi7K t�4/1 PER PM 7651 TT POUND LEAD & DISK..`` \\ `, MINA CONCRETE \ \ PEA PM /65/ CURVE TABLE N0, DELTA RADIUS LENGTH CI C2 4 C5 C7 CB C10 A'..4,4444 Amy 3'47,47" 3.35'42" 9'20'12" 12.55'54T 4'46'10" 4'I3'30. B'5B'SO" 6'44'05" 4.22'29" 11.06.34" NA YAL WEAPONS STAT. ON R 1 C K 447.18 471.28 471.28 471.26 449. 73 449.73 449. 73 473.73 473. 73 473. 70 1264 29.57 76. 80 106.37 Jr. JJ 31.16 70.49 55. 68 16. I 91. 85 { NATO OI�AL 81T9 VICINITY YAP 5610 TWS'LOS6 W, 01900,CA,I110 i19.291,0707 N00986NIN0 0M8ANY VA%1419i9t1t4s 1g0 MONO I. IRON PIPE METH CAL DOT TAG PER R05 14314 BAppt,,o5 E ,E 7 '3D E 310J �5p 67J� -T V 63897 401/ 1790 PARCEL 1 122J ACRES Br.*'4TW 14149' 29.54' NOTE, THE SALE OP PARCEL 1 AND 2, /NDIVIDUAGLY, STRUC)T'TRALC,T,S5IMA/R/OYFMEN7 NG ASPANS PARCELS OTHER 2, AND IINK�SAEME ENTITY JOP EN7/TIESHALL BE SOLD 4 PARCEL 2 2,030 ACRES `POUND 1/1' REBAR WITH PLASTIC PLUG MKO. 'L5 3462' PER ROS 11749 N9'0Y4TE J455' 49 B656'50E MI5' A POUND 1' IRON PIPE MIT. CAL D07 TAG N0 REC0R0 CITY ,STATION SAN 101EG0 SHEET 2 OF 4 SHEETS POUND WEL LIA MOH .5/9A55/ CAP PEMR ROS 147? 228'�/ PROCEDURE OF SURVEY NORTH IB240339.47 0 / I EAST 6296'3:259 or, BASS OF BEARINGS .S{ ♦4:'/ :' p\p �rac{go-? FOUND I' IRON PIPE NpZ,1,, /pQ yp�p��A7e1p 1 NIP(R`R050043M ` // `4;,O{N��\'.�qA3 .i { 1 I yt�PUQOoe 14 So SgAr-'„IEO.0, , / j40"Jq 4020P q4, Fa` THE COMBINED SCALE FACTOR 4T 2747/3N 12N IS vol:,‘ Au 1,0000255 GRID DISTANCE ' GROUND DISTANCE X 5Aa Iy�n. COMBINED SCALE FACTOR. O�pro . n. to 111. y'' II Ss I %BR , ,� I\.'qD 9 CSS%01303PSTATION FOUND LEAD AND BRASS TAG 441(0, Sl7Y ENGR.' PER R05 14492 NORTH 11111116.64 EAST 6199868.04 9662950W 3503' PARCEL 4 1251 ACRES g10'E POOpp5NO NAIL DISK DIIESK IO44ST UCTI . PPE PRRPLftENOKTROYEDf1N -0.28'14.032' 4T STATION 1232 FOUND 1/2' REBAR WITH PLASTIC PLUG MKO. •L5 3462' PER NOS NM, ➢ESIROYE0 BY SONS7UC710N REPLACED WITH 2 "IRON PIPE PEP LEGEND NOTES THE BASIS OF BEARING'S FOR THIS SURVEY TS 7HE CALIFORNIA COORDINATE SYSTEM OF 1982 IONE 6 !EPOCH 1997.351 MEASUREMENT BETWEEN GPS STATION I303 ANC 1232 A5 SHOWN ON RECORD OF SURVEY N0. 14492. I.E. NOV I7'32'W (RIOTED BEARINGS FROM REFERENCE MAPS/DEEDS MAT OR MAY N07 BE IN TERMS GP 5AI0 SYSTEM, ALL DISTANCES AND/OR STREET WIDTHS SHOWN WITHOUT DECIMALS REPRESENT THAT DISTANCE 70 ZERO HUNORECTNS 2261 POUND 3' ALUMINUM PIPE !CORPS OF ENGINEERS) l- PER ROS 11749 0ESTROYED BY CONSTRUCTION REPLACED NM 'IRON PIPE PER LEGEND N27YO5.9W 34.74' CEGENO • 1NOIGA TES FOUND MONUMENT AS NOTED C INDICATES WILL SET LEAORD/SAC MARKED 'L5 607' INDICATES WILL SET 2' X 24. IRON PIPE WITH DISK MARKED 'LS 6187' 0 INDICATES WILL 5E7 3/4' X 18' IRON PIPE WITH 0/511 MARKED 'L5 6187' - INDICATES PARCEL MAP BOUNDARY !RI INDICATES RADIAL BEARING M CON.E9LE CE ANCLE NOT TO 554.E 60 10 0 9B GRAPHIC SCALE 1"3 60' IM%.A Ien1 4n9•,1y earn PROJECT NUMBER 14497A T.M. NO. 200$-23-LS!CAL I CORN IA COORDINATE INDEX 170-1737 E E PARCEL MAP NO. RICK ENOW REA02D COMPANY 3' SHEET 3 OF 4 SHEETS --�-'� � nee '� `�a Rx';un LC A t. / t \ �i\ `\ ' "SEE VIEW / i) ,� ' CORRIDOR EASEMENT 0 • G�?» ON SHEET 4" l yaws PARCEL 3 / I � 6yy� >L0 / pj� L \ r / /GGG' j� EABEMENT rAv PUBLIC �j GB��� _ 2gf /A+ r/ j[vYj� ` 1 `\'� aAin DEDICATED HEREON ' e 'hiN �}V' /J 1 \ A // PR0"DSED PR IVA1E ��� ''\'' . 27/ AA'' ACCESS. AND " f'' /y UTILll t' EASEMENT t\ �i 1 r !�/� RESERVED HEREON ?� >l{{ a "SEE VIEW 1,1 /`/3 EASEMENT EDR CORRIDOR EASEMENT / /S PaBLID PATH ON SHEET 4" v'L c� /0 066609tEO \ N\I /v I/ /A PARCEL 1 e / l,4 ' /C a I� 1`g I .� EASEMENT FOR PUBLIC PATH DEDICATED HEREON 1. 1 \ G scroll A 7 N95g5' 61' Z� CBl b -�I U0 2 seT - yy py I 1 4 Rr ZI6 DrE .8.00' " CITE & - wr.,--C B'.0SEMENT N E-g:: -\ Z I L 9 w„ p par pzEo NENEDN 2=4j �H/I l � �li � 16,82 , \'y' EASEMENT FOR PUBUO R•20' L' %-, \i, PAIN DEDICATEE p•46'll'J]• _ / 65,y �,E a`` 3Z? HEREON _ - % -y / _ I(f 6'LyJ \/ y N62455517 PRtv>TE r C Z7.4--,0935E0 pSEMENT '� `. U1lLlT1 T 41 �-% ISEE EHEE - 6� \ 1, NI7 .; PUB EMENT VENEPE� \ H EaS, r All 1L \ Q 2%'- N47Y3'2661298 162091815 ROAD SAN 01ECO, U 22110 r 1 1442NA 419.791070l "''' r. y...m.1ww��1.� i) NA 1EN0619.291A166 ie .e .Sm.�rm. M,ens.Tpa� . PROPOSED PRIVATE �� $ ACCESS AND UTILITY EASEMENT \ \ 6 -\ RESERVED HEREON I \` \ OEr PARCEL 2 5'2 W rm7 155Z D /,Da3_� C,.j;a {PtDll \ i iS-E� ...IC 9N H i1.96' 4 ,ru46 \ J EMENT BORR, s / OED'.CA1E0'. s.4J•r%C.7�/ 4 5..96'95' \ Pf� \mG � �rx PARCEL 4 CCL'R5E IA91E 0. 0E411ING LENGTH LI N 72'09'41" E 23.01 l2 N 07'21'43" * 14.08 L3 N 7P'09'41" E 19.00 L4 N 17'50'19"W 3,00 15 N 17'50'19" * 67, 75 L6 N 17'45'41" W 117,27 L7 N 75'J9'J5" If 3.99 18 N 76'41'I4"W 9.13 69 N 1I'I6'46" E 23.67 1.10 N 40'08'11" E 9.04 1.11 N 4.41' 16" E 1.69 LIP N 52'26'27" E 19.49 03 N 61'38'52" * 27.06 214 N 7'45'41" W 21.43 115 N 17'45'41" W 15.43 116 N 72'11'50" E 5.96 617 N 88'01'21" W 11.09 L16 N 88'01'22" W 10.51 619 N 11'35'48" E 1.03 120 N 69'14'11" W 19.19 621 N 8l•38'52" W 19.03 40 20 0 CURVE 'ABLE N0. 0E1.T4 040115 LENG7N Cr 0'34'34' CJ 90•10 7'44' C4 I3.26'I1' C5 116.55'21' C6 54.14'22' C7 29' 17'56' CO 84.24'22' C9 12'38'19' 110 10.46'09' C11 11.79'27' C11 6'36'17' CIJ 9'29'00' 449. 73 449. 73 3. 00 440. 73 15.00 24.00 195,09 18.00 176.09 10.00 42.00 195.09 176.09 4, 52 47. 81 4. 75 107. 61 J0. 61 J5. J6 99. 76 26.52 58.84 7.15 8.55 22. 49 29. 15 0 w 120 GRAPHIC SCALE I, 40' PROJECT NUMBER 14997A T.M. NO, 200E-23-LS'CAL IEORNIA COOROI NATE INDEX IRC-1797 v\ PARCEL MAP NO. .IE4p49. R'300' L-97.3M-4, '1. \1 1 1 p.FPr25' L•7-T7' � 1 \ EXISTING SOW EASEMENTS REC. APRIL 17.1973 AS INSTR. N0, 73.707I74 OR. AND REC. OCT . 27.1975 AS \ \w INSTR.N0, 75-290644 O.R. - PARCEL 3 VIEW CORRIDOR\ EASEMENT DEDICATED NEREON d7 20'L.2'2P ih20'4.2` `nWgA 0.62. 10.0 /NTp 1'OVOO EPSEaEGK— 5E0.06'16'/-ff.572'IP50N/ RE`E `'E0.Vi. ENE, N� Il•5 ✓ \ C2 5324.27' 3'T PARCEL? NBO'O6'I6'E �51= ST22 75019 24.92' 36' L4 NMI L./ 6 1'> 515 090 9E 65 20 SHEET 4 OF 4 SHEETS EXISTING EASEMENT NOTES: THE FOLLOMINO 22157196 EASEMENT NAVE N0 EXACT LOCATION DISCLOSED BY THE RECC970r PR/V4TE EASEMENT DAZED .NINE 9, 1669 AND REC. IN BM T, PACE 14 OF DEEDS. PRIVATE EASEMENT REC. 900, I, 1946 IN BY 2263, PACE 312 AS INSTR. N0. IIE01E OF OFFICIAL RECORDS. 50CRE EASEMENT REC, NOV. 3, 2000 A5 F(LE N0, 2008-057331E PRIVATE ACCESS EASEMENT REC. DEC.17. /927 1.300X l419. PAGE 65 09' DEEDS CURVE TABLE N0. DEN TA RADIUS LEN0/N C1 4' 93'02" 116. 09 16. 79 C2 40.09' 36" 3.00 2.10 \, COURSE TABLE N0. BEARING LENGTH LI l3 49 N 72. II 'SO" E N 17.60'19" 9 N 52'26'27" E N 9I'38'51" IY 9. 82 21, 62 9. 08 27.06 40 N 0 Ao GRAPHIC SCALE i'9 40' 60 rs0 A R'3AU SAN CMECO, CA 9i110 819.291.0707 IfM1619391.4165 AI 1..0.. NO OMPANT W OLP A1.�W�.O.v,Y. W W ACL 1 .oin.,.o.1'Am0, ,I<1'niln'9Pit 6.esin PROJECT NUMBER 141B1A T,M. N0. 2008-23-LS TM IFORN IA CCORC INATE INOE% 170-'737 PARCEL MAR/NA GA TEWA Y CASE FILE NO. 2008-23 L S, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA PARCEL MAP OF THOSE PORTIONS OF BLOCKS 232, 281 AND 282, TOGETHER WITH THOSE PORTIONS OF 25TH STREET, 26 TH S TREE T AND CL E VEL AND AVENUE (FORMERL Y 8 TH A VENUE), OF NATIONAL CITY ACCORDING TO MAP THEREOF NO. 398, AND THOSE PORTIONS OFTRACTS 'A"AND '8"OF CHAMBER OF COMMERCE INDUSTRIAL LANDS NO. 1 ACCORDING TO MAP THEREOF NO. 1731, SAID MAPS BEING RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, ALL IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA. PARCEL MAP GUARANTEE PREPARED BY: STEWART TITLE OF CALIFORNIA, INC. ORDER NO. 218212 ON SIGNATURE OM/SS/ON STATEMENT THE SIGNATURES OF THE FOL L OWING PARTIES HAVE BEEN OMITTED UNDER TUC DO/1I/TCT/1A/C nC CC!`TMA/ CCAVC C110CC/'TTEIAl /.,l /71 /A I In nC TUC ATTACHMENT A a vote of the general electorate of the City, gaming is approved specifically for the Site. In -the event gaming becomes a permitted use pursuant to the preceding sentence it shall be conditioned upon (a) all necessary or appropriate permits for such activity first being received, and (b) the primary business activity on the Site continuing to be the operation of a three star hotel, restaurant and related office/tourist/commercial uses. 403. Maintenance Covenants. The Developer and STDC shall maintain the Site and all Improvements thereon, including all landscaping and erosion control, in a commercially reasonable manner. Developer agrees not to further excavate any portion of the Site except as is set forth on the Site Plan Drawings. 404. Nondiscrimination Covenants. The Developer and STDC covenant by and for themselves and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, nor shall the Developer or STDC themselves or any person claiming under or through them establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Site. The foregoing covenants shall run with the land. The Developer and STDC shall refrain from restricting the rental, sale or lease of the Site on the basis of race, color, religion, sex, marital status, ancestry or national origin of any person. All such deeds, leases or contracts, including the CC&Rs, shall contain or be subject to substantially the following nondiscrimination or non -segregation clauses: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (b) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any 017.233970.11 6 City of National City, California COUNCIL AGENDA STATEMENT IEETING DATE August 18, 2009 AGENDA ITEM NO. 6 ITEM TITLE A Resolution of the City Council of the City of National City accepting the work performed by Industrial Coating and Restoration Services with the final amount of $46,535.00 and authorizing the filing of the Notice of Completion with the County Recorder for the National City Police Department Security Fencing Installation Project. (Funded through Supplemental Law Enforcement Service Funds) PREPARED BY Kenneth Fernandez EXPLANATION Please see attached page with explanation. DEPARTMENT EXT. 4388 Development Services/ Engineering Environmental Review X N/A MIS Approval Financial Statement Approved By: Finance Director Funding is available through Accounts 208-411-708-572-0000 (Supplemental Law Enforcement Service Fund (SLESF)) per Resolution 2008-162. Account No STAFF RECOMME A1)`;e Re A`D/ N/A ATION ATTACHMENTS (Listed Below) Resolution No. 1. Resolution 2. Contract Final Balance I 3. Notice of Completion A-200 (Rev. 7/03) SPEC 08-06 NOC RESOLUTION NO. 2009 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ACCEPTING THE WORK FROM INDUSTRIAL COATING AND RESTORATION SERVICES FOR THE TOTAL FINAL AMOUNT OF $46,535 AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE NATIONAL CITY POLICE DEPARTMENT SECURITY FENCING PROJECT BE IT RESOLVED by the City Council of the City of National City as follows: It appearing to the satisfaction of the Engineering Department that all work required to be done by Industrial Coating and Restoration Services, for the total final amount of $46,535 for the National City Police Department Security Fencing Project has been completed, the City Council of National City hereby accepts said work, authorizes the filing of a Notice of Completion, and orders that payment for said work be made in accordance with said contract. PASSED and ADOPTED this 18th day of August, 2009. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney XPLANATION Per Resolution No. 2008-162, the City Council awarded a contract to Industrial Coating and Restoration Services in the amount of $43,535.00 for the construction of the National City Police Department Security Fencing Installation Project, Specification No. 08-06. During the course of construction, the Police Department requested additional work via Change Order #1 to install additional fencing at the south personnel entrance and sheet metal plate at the north pedestrian entrance for a lump sum amount of $3,000.00. Therefore, the construction bid price of $43,535.00 was increased to $46,535.00 via Change Order #1. A final inspection was completed and closing documentation was submitted to the City for review. Final approval of the project was delayed because there were issues with the contractor's progress invoices and the delivery of final closing documents was postponed. After these issues were resolved, the project was eligible for a notice of completion. The work was then found to be in accordance with the approved plans and specifications. Therefore, Engineering Staff recommends the acceptance of the work and the filing of a Notice of Completion for the National City Police Department Security Fencing Project, Spec. No. 08-06. In summary, the purpose of this resolution is to approve the final amount of the project at -,,46,535.00, accept the work performed, and authorize the filing of a Notice of Completion. FINAL CONTRACT BALANCE CHANGE ORDER DATE: August 18. 2009 PROJECT: National City Police Department Security Fencing Project Specification No. 08-06 TO: Industrial Coating and Restoration Services Mr. Mahmoud Merzi, President 2534 Oceanside Boulevard Oceanside, CA 92054 ORIGINAL CONTRACT AMOUNT: S43,535.00 S FART DATE: October 20, 2008 COMPLETION DATE: December 17, 2008 ORIGINAL CONTRACT LENGTH: 40 working days EXfENTION OF WORK DAYS: 0 working days TOTAL CONTRACT TIME: 40 working days DESCRIPTION OF CHANGE: This change order is written to balance and finalize the amounts for said project. Original Contract Adjusted Contract No. I Item Unit Bid Qtv Unit Price Amount Qty Unit Price Amount WROUGH I IRON FENCING SF 3.-30 $950 $33535.00 3.530 $950 $33.535.00 $5,000 00 SHEET METAL DOOR COVER LS 1 $ ,000 00 S5,000.00 I $5.000 00 3 PAINT LS 1 $5.000 00 S5,000.00 I $5.000 00 $5.000 00 COI ADDFIIONAL FENCING AND SHFT I- MT FAL PI.A FE FOR DOOR LS I $ 3 00000 $3_000.00 ((inlrucl Tulin :5I3,535.00 S46.535 00 Page I FINAL CONTRACT BALANCE CHANGE ORDER DISCUSSION: Added line items: Change Order Number One was added for a lump sum amount of $3,000.00. Work included the installation of additional fencing at the south personnel entrance and sheet metal plate at the north pedestrian entrance for the upper parking lot. CONTRACT ADJUSTMENT: As a result of this change order, the contract price is adjusted as follows: 1. The final contract price to date is adjusted to $46,535.00. 2. As a result of the satisfactory completion of said project, a retention and final balance of $4,653.50 is set for invoice processing and payment upon the receipt of required signatures and City Council's ratification of this agreement and the Notice of Completion. This document and its purpose to balance payment shall be considered full compensation for furnishing and installing the materials, labor, tools and equipment, profit, overhead, and all incidentals for performing the work described above. Industrial Coating and Restoration Services will not be entitled to damages or additional payment for delays as described in the 1997 edition of the Standard Specifications for Public Works Construction, Section 6-6.3, for performing the work as described above. Page 2 FINAL CONTRACT BALANCE CHANGE ORDER RECOMMENDED FOR APPROVAL BY: Gord Day City of Chula Vista Project Manager (Consultant) Kennet Fernandez CIVIL ENGINEERING TECIINICIAN NATIONAL CITY PROJECT COORDINATOR REVIEWED BY: t_S-1 in Daneshfar, P.E. DATE PRINCIPAL CIVIL ENGINEER DATE pg/i/�09 DATE a a S' :. • aki, P.E. CITY NGINEER ACCEPTED BY: g%<<io DATE nd stria Coating and Restoration Services DAT ' CONTRACTOR APPROVED BY: Ron Morrison MAYOR DATE City of National City Resolution Number: Page 3 RECORDING REQUESTED BY WHEN RECORDED MAIL TO: CITY OF NATIONAL CITY 1243 NATIONAL CITY BOULEVARD NATIONAL CITY, CA 91950-4301 NOTICE OF COMPLETION CALIFORNIA CIVIL CODE SECTION 3093 NOTICE IS HEREBY GIVEN of the completion on August 18, 2009, of: National City Police Department Security Fencing Installation Project, Specification No. 08-06 Work of improvement or portion of work of improvement under construction or alteration. 1200 National City Boulevard, Street address National City, CA City State 91950 Zip Code The undersigned owns the following interest or estate in said property: N/A Nature of the interest or estate of owner (mortgagor, lessee, ctc.) Said work of improvement was performed on the property pursuant to a contract with Industrial Coating and Restoration Services Name of Original Contractor The following work and material were supplied: Laborer Groups, Trucks, Ladders, Plastic Liners, Tape, Drills, Concrete, Traffic Control Equipment, Welders, Painters, etc. General statement of kind of labor, services, equipment or materials The names and addresses of co -owners are: N/A Joint tenants, tenants in common, or other owners Dated: August 18, 2009. Ron Morrison, Mayor City of National City, 1243 National City Blvd., National City, CA 91950-4301 I, the undersigned, say: I have read the foregoing Notice of Completion, and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury that the forgoing is true and correct. Executed on August 18, 2009, at National City, California. Signature: RON MORRISON, MAYOR N0008-116 FINAL CONTRACT BALANCE CHANGE ORDER DATE: PROJ ECT: TO: August 18. 2009 National City Police Department Security Fencing Project Specification No. 08-06 Industrial Coating and Restoration Services Mr. Mahmoud Merzi, President 2534 Oceanside Boulevard Oceanside, CA 92054 ORIGINAL CONTRACT AMOUNT: START DATE: COMPLETION DATE: ORIGINAL CONTRACT LENGTH: EXTENTION OF WORK DAYS: TOTAL CONTRACT TIME: DESCRIPTION OF CHANGE: S43,535.00 October 20, 2008 December 17, 2008 40 working days 0 working days 40 working days This change order is written to balance and finalize the amounts for said project. Original Contract Adjusted Contract No. T Item WROUGHT IRON FENCING SHEET METAL DOOR COVER Unit SF I Hid Qt 3,530 3 PAINT LS Unit Price $9_i0 $5,000 00 $5 000.00 Amount Qty Unit Price Amount $33,535.00 $5,000.00 S5,000.00 COI ADDITIONAL FENCING AND SHGF:T METAL PI.A1'F. FOR DOOR C.uutract I vial LS $950 $5 1100 oil S5,000L00 $ 1 5 35 00 $5.000.00 $ 5.000.00 $ 3,000 00 $3.000-00 S 43.535_ [00 S40753500 Page 1 FINAL CONTRACT BALANCE CHANGE ORDER DISCUSSION: Added line items: Change Order Number One was added for a lump sum amount of $ 3,000.00. Work included the installation of additional fencing at the south personnel entrance and sheet metal plate at the north pedestrian entrance for the upper parking lot. CONTRACT ADJUSTMENT: As a result of this change order, the contract price is adjusted as follows: 1. 2 The final contract price to date is adjusted to $46,535.00. As a result of the satisfactory completion of said project, a retention and final balance of $4,653.50 is set for invoice processing and payment upon the receipt of required signatures and City Council's ratification of this agreement and the Notice of Completion. This document and its purpose to balance payment shall be considered full compensation for furnishing and installing the materials, labor, tools and equipment, profit, overhead, and all incidentals for performing the work described above. Industrial Coating and Restoration Services will not be entitled to damages or additional payment for delays as described in the 1997 edition of the Standard Specifications for Public Works Construction, Section 6-63, for performing the work as described above. Page 2 FINAL CONTRACT BALANCE CIIANGE ORDER RECOMMENDED FOR APPROVAL BY: GoNon Ilay City of Chula Vista Project Manager (Consultant) Kenneth Fernandez CIVIL ENGINEERING TECHNICIAN NATIONAL CITY PROJECT COORDINATOR REVIEWED BY: din haneshfar_ P.E. PRINCIPAL CIVIL ENGINEER [Ma'ry n abaki, P CI] ENGINEER AC'C'EPTED BY: n us ial Coating and Restoration Services CONTRACTOR APPROVED BY: Ron Morrison MAYOR City of National City Resolution Number: 6)-tt-O5 DATE DATE DATE DATE DATE Page 3 FINAL CONTRACT BALANCE CHANGE ORDER DATE: August 18, 2009 PROJECT: National City Police Department Security Fencing Project Specification No. 08-06 TO: Industrial Coating and Restoration Services Mr. Mahmoud Merzi, President 2534 Oceanside Boulevard Oceanside, CA 92054 ORIGINAL CONTRACT AMOUNT: START DATE: COMPLETION DATE: ORIGINAL CONTRACT LENGTH: FXTFNTION OF WORK DAYS: TOTAL CONTRACT TIME: DESCRIPTION OF CHANGE: S43,535.00 October 20, 2008 December 17, 2008 40 working days 0 working days 40 working days This change order is written to balance and finalize the amounts Cor said project. Original Contract Adjusted Contract No. Item Unit SF Bid Qty 3,530 Unit Price Amount Qty Unit Price Amount I 2 A ROUGIITIRON FENCING $930 $33,535.00 3.530 19so $33.535_00 SIIELtNIL TALDOOR COVER LS I $500000 $5.000.00 1 55,000.00 $5,000_00 PAINT LS 1 55-o00 00 $5.000.00 I $5,000.00 $5 000.00 COI ADDI I IONAL FENCING AND SHEET METAL PI_.ATL FOR DOOR LS 1 5 3,000.00 $3.000.00 ('(mlruct Tom( J-13,53 500 $46.535 00 Page 1 FINAL CONTRACT BALANCE CHANGE ORDER DISCUSSION: Added line items: Change Order Number One was added for a lump sum amount of $3,000.00. Work included the installation of additional fencing at the south personnel entrance and sheet metal plate at the north pedestrian entrance for the upper parking Jot. CONTRACT ADJUSTMENT: As a result of this change order. the contract price is adjusted as follows: I _ The final contract price to date is adjusted to $46,535.00. 2. As a result of the satisfactory completion of said project, a retention and final balance of $4,653.50 is set for invoice processing and payment upon the receipt of required signatures and City Council's ratification of this agreement and the Notice of Completion. This document and its purpose to balance payment shall be considered full compensation for furnishing and installing the materials, labor, tools and equipment, profit, overhead. and all incidentals for performing the work described above. Industrial Coating and Restoration Services will not he entitled to damages or additional payment for delays as described in the 1997 edition of the Standard Specifications for Public Works Construction. Section 6-6.3, for performing the work as described above. Page 2 FINAL CONTRACT BALANCE CHANCE ORDER RECOMMENDED FOR APPROVAL BY: Gordon 9ay City of Chula Vista Project Manager (Consultant) Kenneth Fernandez (J CIVIL ENGINEERING TECHNICIAN NATIONAL CITY PROJECT COORDINATOR REVIEWED BY: in Daneshfar, P.E. PRINCIPAL. CIVIL ENGINEER .�7 Mary B aki, P.E. CITY ENGINEER ACCEPTED BY: stria Coating and Restoration Services CON FRACI OR APPROVED B%': Ron Morrison MAYOR City of National City Resolution Number: DATE D8/l/709 DATE DATE DATE DATE Page 3 City of National City, California COUNCIL AGENDA STATEMENT EETING DATE August 18, 2009 AGENDA ITEM NO. 7 (ITEM TITLE A Resolution of the City Council of the City of National City accepting the work performed by Industrial Coating and Restoration Services with the final amount of $44,100.00 and authorizing the filing of the Notice of Completion with the County Recorder for the National City Police Department Bullet - Resistant Glazing/Paneling Project. (Funded through Justice Assistance Grant Funds) PREPARED BY Kenneth Fernandez DEPARTMENT EXT. 4388 Development Services/ Engineering EXPLANATION Please see attached page with explanation. fEnvironmental Review X N/A MIS Approval s. Financial Statement Approved By: Finance Director Funding is available through Accounts 290-411-502-599-0000 (Justice Assistance Grant (JAG)) funds per Resolution 2008-163. STAFF RECOMMENDATI N/A lution. OMMI 10 • • MMENDATION Account No l ATTACHMENTS (Listed Below) Resolution No. 1. Resolution 2. Contract Final Balance 3. Notice of Completion i A-200 (Rev. 7/03) SPEC 08-07 NOC RESOLUTION NO. 2009 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ACCEPTING THE WORK FROM INDUSTRIAL COATING AND RESTORATION SERVICES FOR THE TOTAL FINAL AMOUNT OF $44,100 AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION FOR THE NATIONAL CITY POLICE DEPARTMENT BULLET -RESISTANT GLAZING/PANELING PROJECT BE IT RESOLVED by the City Council of the City of National City as follows: It appearing to the satisfaction of the Engineering Department that all work required to be done by Industrial Coating and Restoration Services, for the total final amount of $44,100 for the National City Police Department Bullet -Resistant Glazing/Paneling Project has been completed, the City Council of National City hereby accepts said work, authorizes the filing of a Notice of Completion, and orders that payment for said work be made in accordance with said contract. PASSED and ADOPTED this 18th day of August, 2009. Ron Morrison, Mayor ATTEST: Michael R. Della, City Clerk APPROVED AS TO FORM: George H. Eiser, HI City Attorney EXPLANATION Per Resolution No. 2008-163, the City Council awarded a contract to Industrial Coating and Restoration Services in the amount of $44,100.00 for the construction of the National City Police Department Bullet -Resistant Glazing/Paneling Project, Specification No. 08-07. A final inspection was completed and closing documentation was submitted to the City for review. Final approval of the project was delayed because there were issues with the contractor's progress invoices and materials. In addition, the delivery of final closing documents was postponed. After these issues were resolved, the project was eligible for a notice of completion. The work was then found to be in accordance with the approved plans and specifications. Therefore, Engineering Staff recommends the acceptance of the work and the filing of a Notice of Completion for the National City Police Department Bullet -Resistant Glazing/Paneling Project, Spec. No. 08-07. In summary, the purpose of this resolution is to approve the final amount of the project at $44,100.00, accept the work performed, and authorize the filing of a Notice of Completion. FINAL CONTRACT BALANCE CHANGE ORDER DATE: August 18, 2009 PROJECT: TO: National City Police Department Bullet -Resistant Glazing/Paneling Project Specification No. 08-07 Industrial Coating and Restoration Services Mr. Mahmoud Merzi, President 2534 Oceanside Boulevard Oceanside, CA 92054 ORIGINAL CONTRACT AMOUNT: START DATE: COMPLETION DATE: ORIGINAL CONTRACT LENGTI I: EXTENTION OF WORK DAYS: TOTAL CONTRACT TIME: DESCRIPTION OF CHANGE: S44,100.00 October 20, 2008 January 9, 2009 40 working days 15 working days 55 working days This change order is written to balance and finalize the amounts for said project. Original Bid Qty. Contract Adjusted Contract No. 1 Item Unit Unit Price Amount Qtv Unit Price Amount UM DOOR W,' CARD READER CAPABILITY LS 1 $4,50000 $4.500.00 1 $4500 00 $4.500_00 2 BLACK -OUT BLIND LS 1 $1,200.00 $1,200.00 1 $1.20000 $1200.00 4 BULLET -RESISTANT GLASS SF 100 $45_00 $4,500.00 100 $45.00 $4,500.00 BULLET -RESISTANT GLASS HARDWARE EA 4 $400.00 $1.600.00 4 $400.00 $1.600.00 BULLET -RESISTANT FIBERGLASS ARMOR SF 170 540.00 $6.800.00 170 540.00 $6,800.00 $8.00000 fi GRANITE PANEL REMOVAL/REINSTALL LS 1 $8,00000 $8.000.00 I $800000 7 CASEWORK DEMOLITION LS 1 $5,00000 $5.000.00 1 $5,00000 $23333 $5,000.00 1 $3,500.00 8 NEW CASEWORK LE 15 $23333 $3,500.00 15 1 9 SIGNAGE LS I 1500.00 $500.00 _ S500.00 $500.00 10 I 1 MISC. CARPENTRY LS 1 $3,500.00 $3,500.00 1 S3,500.00 $3,500.00 PAINT LS 1 $5.000.00 $5,000.00 I $5.000.00 $5.000 00 Contract Total $44.100.00 544,100,00 Page I FINAL CONTRACT BALANCE CHANGE ORDER DISCUSSION: Added line items: No additional line items have been added since there were no change orders issued for this project. CONTRACT ADJUSTMENT: As a result of no change order, the contract price remains as follows: I_ The final contract price to date is $44,100.00 2. As a result of the satisfactory completion of said project, a retention and final balance of $4,410.00 is set for invoice processing and payment upon the receipt of required signatures and City Council's ratification of this agreement and the Notice of Completion. This document and its purpose to balance payment shall be considered full compensation for furnishing and installing the materials, labor, tools and equipment, profit, overhead, and all incidentals for performing the work described above. Industrial Coating and Restoration Services will not be entitled to damages or additional payment for delays as described in the 1997 edition of the Standard Specifications for Public Works Construction, Section 6-6.3. for performing the work as described above_ Page 2 FINAL CONTRACT BALANCE CHANCE ORDER RECOMMENDEI) FOR APPROVAL BY: Gori on ay City of Chula Vista Project Manager (Consultant) Kenneth Fernandez CIVIL ENGINEERING TECHNICIAN NATIONAL CITY PROJECT COORDINATOR REVIEWED BY: Din Ianeshfar, P.F. PRINCIPAL CIVIL ENGINEER ar Bzabaki, P CIT ENGINEER ACCEPTED BY: 6'- t 1 - o 7 DATE DATE 1� Cci DATE Industrial Coating and Restoration Services DATE CONTRACTOR APPROVED BY: Ron Morrison MAYOR City of National City Resolution Number: DATE Page 3 RECORDING REQUESTED BY WHEN RECORDED NIA!L TO - CITY OF NATIONAL CITY 1243 NATIONAL CITY BOULEVARD NATIONAL CITY, CA 91950-4301 r NOTICE OF COMPLETION CALIF ORNI.a CIVIL CODE. SF('I ION 3093 NOTICE IS HEREBY GIVEN of the completion on August 18, 2009, of: National City Police Department Bullet -Resistant Glazing/Paneling Project, Specification No. 08-07 Work of improvement or portion of work of improvement under construction or alteration. 1200 National City Boulevard. Street address National City, CA 91950 City State Zip Code The undersigned owns the following interest or estate in said property: N/A Nature of the interest or estate of owner (mortgagor, lessee. etc.) Said work of improvement was performed on the property pursuant to a contract with Industrial Coating and Restoration Services Name of Original Contractor The following work and material were supplied: Laborer Groups. Ladders. Plastic Liners. Tape, Drills. Carpentrv. Specialty Glazing and Paneling, Wiring. etc. General statement of kind of labor, services. equipment or materials The names and addresses of co -owners are: NiA Mint tenants. tenants in common_ or other owners Dated: August 18, 2009. Ron Morrison, Mayor City of National City, 1243 National City Blvd., National City, CA 91950-4301 I, the undersigned, say: I have read the foregoing Notice of Completion, and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury that the forgoing is true and correct. Executed on August 18, 2009, at National City, California. Signature: RON MORRISON, MAYOR FINAL CONTRACT BALANCE CHANGE ORDER DATE: August 18, 2009 PROJECT: TO: National City Police Department Bullet -Resistant Glazing/Paneling Project Specification No. 08-07 Industrial Coating and Restoration Services Mr. Mahmoud Merzi, President 2534 Oceanside Boulevard Oceanside, CA 92054 ORIGINAL CONTRACT AMOUNT: START DATE: COMPLETION DATE: ORIGINAL CONTRACT LENGTH: EXTENTION OF WORK DAYS: TOTAL CONTRACT TIME: DESCRIPTION OF CHANGE: S44,100.00 October 20, 2008 January 9, 2009 40 working days 15 working days 55 working days This change order is written to balance and finalize the amounts for said project. Original Contract Adjustcd Contract No. Item Unit LS Bid Qty 1 Unit Price $4,500.00 Amount $ 4,500.00 Qty 1 Unit Price $4 500 00 Amount S4.500 00 ( I IM DOOR W CARD READER CAt'A13 i 1_l TY 2 BLACK -OUT BLIND LS I $1,20000 $1 200.00 I $1.200.00 $1200.00 3 BULLFT-RESISTANT GLASS SF 100 $.1500 $40000 $40.00 $4.500.00 $1,60000 $6.800A0 100 ,1 170 $15 00 $40000 $40.00 $4,500.00 $160000 $6800.00 4 BULLET -RESISTANT GLASS HARDWARE EA 4 5 BULLET -RESISTANT FIBERGLASS ARMOR SF 170 6 GRANI I L_ PANEL REMOVAL 'REINS FALL LS I $8,00000 $8.000.00 1 $x00000 $8,000.00 CASEWORK DEMOLITION I S 1 $5,000.00 $5000.00 1 $5.000 00 $5,000.00 NEW CASEWORK LF 15 $23333 $3,500.00 15 $23333 $3,500.00 9 SIGNAGE LS 1 $500.00 $500.00 1 $50000 $500.00 10 MISC CARPENTRY LS 1 S3,50000 $3.500.00 1 S3.50000 $3.500.00 1 I PAIN I LS 1 $5 000 00 $5.000 00 1 $5.000 00 S5,000 00 Contracl Tonal S44,10000 S44.IRO 00 Page 1 FINAL CONTRACT BALANCE CHANGE ORDER DISCUSSION: Added line items: No additional line items have been added since there were no change orders issued for this project. CONTRACT ADJUSTN EN'T: As a result of no change order, the contract price remains as follows: 1. The final contract price to date is $44,100.00 2. As a result of the satisfactory completion of said project, a retention and final balance of S4,410.00 is set for invoice processing and payment upon the receipt of required signatures and City Council's ratification of this agreement and the Notice of Completion. This document and its purpose to balance payment shall be considered full compensation for furnishing and installing the materials, labor, tools and equipment, profit, overhead, and all incidentals for performing the work described above. Industrial Coating and Restoration Services will not be entitled to damages or additional payment for delays as described in the 1997 edition of the Standard Specifications for Public Works Construction, Section 6-6.3, for performing the work as described above. Page 2 FINAL CONTRACT BALANCE CHANGE ORDER RECOMMENDED FOR APPROVAL BY: G0.1 ot •on lay City of Chula Vista Project Manager (Consultant) Kenneth Fernandez CIVIL ENGINEERING TECHNICIAN NATIONAL CITY PROJECT COORDINATOR REVIEWED BY: -o1 DATE DATE in aneshfar, P.E. DATE PRINCIPAL CIVIL ENGINEER Ma y. Babaki, P.E. DATE CITY ENGINEER ACCEPTED BY: �I dl - Industrial Coating and Restoration Services DATE CONTRACTOR APPROVED BY: Ron Morrison MAYOR DATE City of National City Resolution Number: Page 3 FINAL CONTRACT BALANCE CHANCE ORDER DATE: August 18, 2009 PROJECT: TO: National City Police Department Bullet -Resistant Glazing/Paneling Project Specification No. 08-07 Industrial Coating and Restoration Services Mr. Mahtnoud Merzi, President 2534 Oceanside Boulevard Oceanside, CA 92054 ORIGINAL CONTRACT AMOUNT: STAR 1' DATE: COMPLETION DA"I L: ORIGINAL CONTRACT LENGTH: EXTENTION OF WORK DAYS: TOTAL CONTRACT TIME: DESCRIPTION OF CHANCE: $44,1.00.00 October 20, 2008 January 9, 2009 40 working days 15 working days 55 working days This change order is Written to balance and finalize the amounts for said project Original Contract Adjusted Contract No. Item Unit Bid Qty Unit Price Amount Qtv Unit Price Amount 1 IIM DOOR W CARD READER CAPABILITY LS I $4,50000 $4,500.00 1 $4.50000 $4.500.00 BLACK-OU t BLIND LS I $1,200.00 $1,200.00 1 $1,200.00 $1,200.00 3 BULLED -RESISTANT GLASS SF 100 $45 00 $4,500.00 100 $45 00 $4,500.00 4 BL'LLE I. -RESISTANT GLASS HARDWARE EA 4 $400.00 $1,600.00 4 $400.00 $1,600.00 BULLET -RESISTANT FIBERGLASS ARMOR SF 170 $4000 $6.800.00 170 $40.00 $6,800.00 6 GRANITE PANEL REMOVAL'RLINS FALL LS 1 $8A0000 $8,000.00 I $8,00000 $8,00000 7 CASEWORK DEMOLITION LS 1 $5.00000 S5.000.00 1 $5,00000 $3,000.00 8 NEW CASEWORK LE 13 $233.33 S3,,500.00 15 $23333 $3,500.00 9 SIGNAGE LS 1 $500 00 $500.00 I $50000 $500.00 10 MISC. CARPENTRY LS 1 $3,500.00 $3.50000 I $3,500.00 $3,50000 11 PAINT LS 1 55,000.00 55,000.00 1 $5,00000 $5,000.00 Contract iota,' S44.100.00 $44,100 00 1 Page 1 FINAL CONTRACT BALANCE CHANGE ORDER DISCUSSION: Added line items: No additional line items have been added since there were no change orders issued for this project. CONTRACT ADJUSTMENT: As a result of no change order, the contract price remains as follows: 1. The final contract price to date is S44,100.00 2. As a result of the satisfactory completion of said project, a retention and final balance of $4,410.00 is set for invoice processing and payment upon the receipt of required signatures and City Council's ratification of this agreement and the Notice of Completion. This document and its purpose to balance payment shall be considered full compensation for furnishing and installing the materials, labor, tools and equipment, profit, overhead, and all incidentals for performing the work described above. Industrial Coating and Restoration Services will not be entitled to damages or additional payment for delays as described in the 1997 edition of the Standard Specifications for Public Works Construction, Section 6-6.3, for performing the work as described above. Page 2 FINAL CONTRACT BALANCE CI-IANGE ORDER RECOMMENDED FOR APPROVAL BY: 4 ii. Gordon ar City of Chula Vista Project Manager (Consultant) Kenneth Fernandez tJ CIVIL. ENGINEERING TECHNICIAN NATIONAL CITY PROJECT COORDINATOR REVIEWED BY: b'- r(-09 DATE DATE /i••I aneshfar, P.E. V DATE PRINCIPAL CIVIL ENGINEER Mar m Babaki, P.E. CITY ENGINEER ACCEPTED BY: C DATE Industrial Coating and Restoration Services DATE CONTRACTOR APPROVED BY: Ron Morrison MAYOR City of National City Resolution Number: DATE Page 3 City of National City, California COUNCIL AGENDA STATEMENT EETING DATE August18, 2009 AGENDA ITEM NO. 8 /ITEM TITLE Resolution of the City Council of National City approving contract agreement with Wade & Associates for construction management services for the Marina Gateway Streetscape Project in the amount not -to -exceed $127,089 and authorizing the Mayor to execute the agreement. Funds are available in the Tax Increment Fund. PREPARED BY Barby Tipton DEPARTMENT Development Services/ EXT. 4583 Engineering EXPLANATION See attached explanation Environmental Review X N/A MIS Approval Financial Statement Approved By. V Finance Director Funds are available in expenditure account 511-409-500-598-3842 (Marina Gateway Improvements) Account No. 511-409-500-598-3842 STAFF RECOMMENDATION Adopt the Resolution 4j BOARD / COMMISSION RECOMMEfffDA ION ATTACHMENTS (Listed Below) Resolution No. 1. Resolution 2. Agreement (3 copies) wademarina A-200 (Rev. 7/03) EXPLANATION: The Marina Gateway Streetscape Project requires a Project Manager to provide all aspects of the construction activities. The general services will include document review (specifications, plans, contract, change order, etc), attend weekly meetings, process Requests for Information, review and recommend invoices, maintain a master construction file, process certified payroll and finalize the construction work. The project consists of constructing upgrades for street improvements and streetscape to Harrison Avenue, between Bay Marina Drive and Cleveland Avenue, to 23`d Street, between Harrison Avenue and McKinley Avenue, to Cleveland Avenue, between Bay Marina Drive and 23`d Street, and to the Historic Depot area. New curb, gutter, widened sidewalk, and landscaping will be constructed on Harrison Avenue, 23rd Street, and Cleveland Avenue. Harrison Avenue will be closed to through traffic for the construction of a plaza which will include a 35 space public parking area to include one handicapped and one van -accessible space, landscape islands, sidewalk, and a 55 foot by 80 foot concrete public plaza with landscaped planters on the north side of Bay Marina Drive and adjacent to the south end of the parking lot. On Harrison Avenue, in the location of the proposed parking lot drive aisle and the proposed perpendicular parking stalls on the east side, the existing pavement section will be removed and replaced with 4'/2" Asphalt Concrete (AC) on 4" Cement Treated Base (CTB) and the existing railroad tracks are to remain in place. In the location of the proposed perpendicular parking stalls on the west side, the pavement section will be improved with a porous material as a water quality feature of the project. The existing pavement section on 23'd Street will be removed and replaced with 6" AC on 4" of CTB and in the location of the proposed parallel parking spaces on the north and south side of the street; it will also be replaced with a porous material as a water quality feature on the project. The pavement section on Cleveland Avenue will also be improved with a porous material in the proposed parallel parking spaces on the west and east sides of the street as a water quality feature of the project and the proposed pavement improvements will consist of the grinding of the existing pavement and the overlaying of new AC to match the existing surface. Improvements in the Historic Depot area consists of new up -lighting, the emoval and replacement of the existing fencing fronting Bay Marina Drive and Harrison Avenue, the removal of the existing AC on the south and east sides of the existing building to be replaced with decomposed granite (DG) on the south side of the building and a concrete driveway and walkway on the east side of the building. The project includes the removal of a portion of existing rail at the intersection of Cleveland Avenue and 23`d Street, a portion of existing rail at the intersection of Harrison Avenue and 23`d Street, the abandoned rail spur that splits the vacant property between Harrison Avenue and Cleveland Avenue, and the spur on Cleveland Avenue, approximately mid - block between Bay Marina Drive and 23`d Street that terminates at the vacant property east of Cleveland Avenue. Additional water quality features of the project include the use of porous concrete at the north end of Harrison Avenue and a proposed planter box on the east side of Cleveland Avenue, north of 23'd street. The intersection of Cleveland Avenue and 23`d Street will be enhanced with lithocrete concrete pavement. In conjunction with the new sidewalks, new accessible pedestrian ramps will be constructed at Harrison Avenue and 23rd Street and at Cleveland Avenue and 23`d Street. The project duration is 120 workings days after award of contract. The total Engineer's Cost Estimate is $2,539,000 for this project. Staff is familiar with the services provided by Wade & Associates; Council authorized their services for work on last year's Bay Marina Drive (BMD) Widening Project. The aforementioned project was professionally managed from start to finish. The consultant performed construction management, certified payroll review, change order coordination and processed paperwork/reports in a timely manner. The project completed on time. Staff recommends that Council approve the agreement and authorize the Mayor to execute the agreement. RESOLUTION NO. 2009 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH WADE & ASSOCIATES FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE MARINA GATEWAY STREETSCAPE PROJECT IN THE AMOUNT NOT -TO -EXCEED $127,089 WHEREAS, it is necessary for the City to retain the services of a consultant to provide construction management services for the Marina Gateway Streetscape Project; and WHEREAS, Wade & Associates is a qualified construction management firm, and is willing to provide those services in the not -to -exceed amount of $127,089. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute an Agreement with Wade & Associates for construction management services for the Marina Gateway Streetscape Project, with a not -to - exceed amount of $127,089. Said Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 18th day of August, 2009. Ron Morrison, Mayor ATTEST: Michael R. Della, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND WADE & ASSOCIATES THIS AGREEMENT is entered into this 7th day of July , 2009, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and Wade & Associates, (the CONSULTANT). RECITALS WHEREAS, the CITY desires to employ a CONSULTANT to provide project management services for the Marina Gateway Streetscape Project, Specification No. 08-16. WHEREAS, the CITY has determined that the CONSULTANT is a project management firm and is qualified by experience and ability to perform the services desired by the CITY, and the CONSULTANT is willing to perform such services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF CONSULTANT. The CITY hereby agrees to engage the CONSULTANT and the CONSULTANT hereby agrees to perform the services hereinafter set forth in accordance with all terms and conditions contained herein. The CONSULTANT represents that all services required hereunder will be performed directly by the CONSULTANT or under direct supervision of the CONSULTANT. 2. SCOPE OF SERVICES. The CONSULTANT will perform services as set forth in Exhibit "A" . _ The CONSULTANT shall be responsible for all research and reviews related to the work and shall riot rely on personnel of the CITY for such services, except as authorized in advance by the CITY. The CITY may unilaterally, or upon request from the CONSULTANT, from time to time reduce or increase the Scope of Services to be performed by the CONSULTANT under this Agreement. Upon doing so, the CITY and the CONSULTANT agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction or increase in the compensation associated with said change in services, not to exceed a factor of 10% from the base amount. 3. PROJECT COORDINATION AND SUPERVISION. Barbara Tipton hereby is designated as the Project Coordinator for the CITY and will monitor the progress and execution of this Agreement. The CONSULTANT shall assign a single Project Director to provide supervision and have overall responsibility for the progress and execution of this Agreement for the CONSULTANT. Byron Wade thereby is designated as the Project Director for the CONSULTANT. 4. COMPENSATION AND PAYMENT. The compensation for the CONSULTANT shall be based on actual work performed not -to -exceed $127,089. 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 CONSULTANT 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. ACCEPTABILITY OF WORK. The City shall decide any and all questions which may arise as to the quality or acceptability of the services performed and the manner of performance, the acceptable completion of this Agreement and the amount of compensation due. In the event the CONSULTANT and the City cannot agree to the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONSULTANT in this Agreement, the City or the CONSULTANT shall give to the other written notice. Within ten (10) business days, the CONSULTANT and the City shall each prepare a report which supports their position and file the same with the other party. The City shall, with reasonable diligence, determine the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONSULTANT. 6. LENGTH OF AGREEMENT. Work g upon receipt of signed agreement from the CITY and terminates on March 31, . Zozo. , 7. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda, Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONSULTANT 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 CONSULTANT hereby assigns to the CITY and CONSULTANT 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 CONSULTANT shall, upon request of the CITY, execute any further document(s) necessary to further effectuate this waiver and disclaimer. The CONSULTANT agrees that the CITY may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium or method utilize the CONSULTANT's written work product for the CITY's purposes, and the CONSULTANT 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 CONSULTANT shall relieve the CONSULTANT 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 2 Citys Standard Agreement — June 2008 revision 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. 8. INDEPENDENT CONSULTANT. 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 CONSULTANT nor the CONSULTANT'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 CONSULTANT and the CONSULTANT'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 CONSULTANT and its employees. Neither this Agreement nor any interest herein may be assigned by the CONSULTANT without the prior written consent of the CITY. Nothing herein contained is intended to prevent the CONSULTANT from employing or hiring as many employees, or subCONSULTANTs, as the CONSULTANT may deem necessary for the proper and efficient performance of this Agreement. All agreements by CONSULTANT with its SUBCONSULTANT(s) shall require the subCONSULTANT to adhere to the applicable terms of this Agreement. 9. CONTROL. Neither the CITY nor its officers, agents or employees shall have any control over the conduct of the CONSULTANT or any of the CONSULTANT's employees except as herein set forth, and the CONSULTANT expressly agrees not to represent that the CONSULTANT or the CONSULTANT's agents, servants, or employees are in any manner agents, servants or employees of the CITY, it being understood that the CONSULTANT, its agents, servants, and employees are as to the CITY wholly independent CONSULTANTs and that the CONSULTANT's obligations to the CITY are solely such as are prescribed by this Agreement. 10. COMPLIANCE WITH APPLICABLE LAW. The CONSULTANT, 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 CONSULTANT, and each of its subCONSULTANTs, shall obtain and maintain a current City of National City business license prior to and during performance of any work pursuant to this Agreement. 11. LICENSES, PERMITS, ETC. The CONSULTANT represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. The CONSULTANT represents and covenants that the CONSULTANT 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 CONSULTANT to practice its profession. 12. STANDARD OF CARE. A. The CONSULTANT, 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 CONSULTANT'S trade or profession currently practicing under similar conditions and in similar locations. The CONSULTANT shall take all special precautions necessary to protect the CONSULTANT'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. 3 City's Standard Agreement — June 2008 revision B. Unless disclosed in writing prior to the date of this agreement, the CONSULTANT 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 CONSULTANT's professional performance or the furnishing of materials or services relating thereto. C. The CONSULTANT is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the project the CONSULTANT 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 CONSULTANT has notified the CITY otherwise, the CONSULTANT 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 CONSULTANT to use due diligence under this sub -paragraph will render the CONSULTANT 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. 13. NON-DISCRIMINATION PROVISIONS. The CONSULTANT 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 CONSULTANT 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 CONSULTANT 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. 14. CONFIDENTIAL INFORMATION. The CITY may from time to time communicate to the CONSULTANT certain confidential information to enable the CONSULTANT to effectively perform the services to be provided herein. The CONSULTANT shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CITY. The CONSULTANT 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 CONSULTANT, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONSULTANT without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONSULTANT 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 CONSULTANT 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 CONSULTANT 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. CONSULTANT shall be liable to CITY for any damages caused by breach of this condition, pursuant to the provisions of Section 14. 4 City's Standard Agreement — June 2008 revision 15. INDEMNIFICATION AND HOLD HARMLESS. The CONSULTANT 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 CONSULTANT's negligent performance of this Agreement. 16. WORKERS' COMPENSATION. The CONSULTANT 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 CONSULTANT under this Agreement. 17. INSURANCE. The CONSULTANT, at its sole cost and expense, shall purchase and maintain, and shall require its SUBCONSULTANTS, 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 owned, non -owned, and hired vehicles ("any auto"). C. Commercial general liability insurance, with minimum limits of $1,000,000 per occurrence/$2,000,000 aggregate, covering all bodily injury and property damage arising out of its operations under this Agreement. D. Workers' compensation insurance in an amount sufficient to meet statutory requirements covering all of CONSULTANT'S employees and employers' liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the City. Said endorsement shall be provided prior to commencement of work under this Agreement. 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 workers' compensation policies, shall name the CITY and its officers, agents and employees as additional insureds, and separate additional insured endorsements shall be provided. G. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the CONSULTANT shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date must be on or before the date of this Agreement. H. Any aggregate insurance limits must apply solely to this Agreement. I. Insurance shall be written with only California admitted companies which hold a current policy holder's alphabetic and financial size category rating of not less than A VIII 5 City's Standard Agreement — June 2008 revision according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the City's Risk Manager. In the event coverage is provided by non -admitted "surplus lines" carriers, they must be included on the most recent California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements. 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 CONSULTANT 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. K. All deductibles and self -insured retentions in excess of $10,000 must be disclosed to and approved by the CITY. 18. 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 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. 19. 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. 20. 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 CONSULTANT. During said 60-day period the CONSULTANT 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 CONSULTANT 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 CONSULTANT as provided for herein. 6 Citys Standard Agreement — June 2008 revision D. In the event of termination, all finished or unfinished Memoranda Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONSULTANT, whether paper or electronic, shall immediately become the property of and be delivered to the CITY, and the CONSULTANT 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 CONSULTANT'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 CONSULTANT; (2) a reorganization of the CONSULTANT for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONSULTANT. 21. 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 CITY: To CONSULTANT: Maryam Babaki Engineering Department City of National City 1243 National City Blvd National City, CA 91950 Byron Wade Wade & Associates 11320 Meadow View Road El Cajon, CA 92020 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. 22. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this Agreement, the CONSULTANT 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 CONSULTANT also agrees not to specify any product, treatment, 7 City's Standard Agreement — June 2008 revision process or material for the project in which the CONSULTANT has a material financial interest, either direct or indirect, without first notifying the CITY of that fact. The CONSULTANT shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The CONSULTANT 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 CONSULTANT has a financial interest as defined in Government Code Section 87103. The CONSULTANT 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 CONSULTANT shall comply with all of the reporting requirements of the Political Reform Act and the National City Conflict of Interest Code. Specifically, the CONSULTANT 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 CONSULTANT shall obtain from the City Clerk. The CONSULTANT 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 CONSULTANT. 23. 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. !. Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. J. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. 8 City's Standard Agreement — June 2008 revision 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 WADE & ASSOCIATES (Corporation - signatures of two corporate officers) (Partnership - one signature) (Sole proprietorship - one signore) By: By: Ron Morrison, Mayor (Print) (Title) APPROVED AS TO FORM: By: George H. Eiser, III (Name) City Attorney (Print) (Title) 9 Citys Standard Agreement — June 2008 revision Exhibit A WADE & ASSOCIATES PROJECT MANAGEMENT 656 Fifth Avenue, Suite W TEL (619) 244-341B San Diego, California 92101 FAX (619) 794-0180 Byronwade 1 @mac.com June 12, 2009 Din Daneshfar, Principal Civil Engineer City of National City 1243 National City Blvd. National City, CA 91950 RE: Project Management Services for the City of National City, Marina Gateway Streetscape, Spec. No. 08-16 Dear Din, I am submitting this proposal per your request for a cost estimate to provide project management services for the abovementioned project that is to begin on June 12, 2009 and be completed by March 31, 2010. SCOPE As the project manager for this project I will work with the City of National City, their project inspector and the contractor to coordinate all aspects of the construction activities and public outreach, which includes: • Attend pre -construction meeting • Process RFI's and submittals. • Review, negotiate, recommend and draft change orders for City approval as necessary. • Review and recommend invoices for payment. • Visit the construction as needed to assist in problem resolution. • Maintain a master construction file. • Take efforts as necessary and directed to communicate the construction activities to the general public. • Review certified payroll and maintain records. • Finalize the project per City policy and standards. See attached worksheet for cost breakdown. Thank you for this opportunity to serve the City of National City on this project. Sincerely, Li ByronS. ade °Wrierr/Pri cipal Project Manager l WADE & ASSOCIATES Fee Proposal/Cost Estimate for City of National City Marina Gateway Project, Spec. 08-19 Estimated Hours & Sub -Consultants: # Task Principal Project Manager Project Manager Admin. Assistant Sub- Consultant TOTALS 1 Project Management 550 220 40 108,320 2 Certified Payroll 24 220 18,560 3 Total Hours 574 220 260 4 Rates 150 105 68 - 5 Sub Management Fee 10% - - 6 TOTALS 86,100 23,100 17,680 - $ 126,880 Estimated Reimbursable Costs: # Item Type of Units Cost per Units Estimated number of Units TOTALS 1 B&W Copies/Prints 8 1/2" x 11" Each $ 0.20 240 48.00 2 Color Copies/Prints 8 1/2" x 11" Each $ 1.00 - 3 Full Size (D Sheets) Paper Each $ 15.00 - 4 Full Size (D Sheets) Mylars Each $ 30.00 - 5 CD Roms Each $ 5.00 1 5.00 6 Binder, 2" Each $ 22.00 - 7 Binder, 3" Each $ 26.00 6 156.00 8 Contracted Expenses Total - Total Expenses Total Consulting Fee (above) Total Cost Estimate 209.00 126,880.00 $ 127,089.00 10% Overhead fee will be charged to subontracted expenses. By,•.�•de O*n,a /.°ri cipal Project Manager June 12, 2009 City of National City, California COUNCIL AGENDA STATEMENT MEETING DATE August 18, 2009 AGENDA ITEM NO. 9 ITEM TITLE Resolution of the City of National City Council adopting the Sanitary Sewer Management Plan (SSMP), as required by State Water Resources Control Board Order No. 2006-003 and developed by City, as per City Council Resolution No. 2007-246. PREPARED BY DEPARTMENT Joe Smith, Director Public Works (Ext. 4587) EXPLANATION On July 10, 2007 the City Council approved Resolution No. 2007-246 authorizing the execution of an agreement with Infrastructure Engineering Corporation to provide engineering consultant services for the City's Sanitary Sewer Management Plan (SSMP) preparation. The development of a SSMP allows the City to comply with the terms of the State of California Water Resources Control Board (SWRCB) Order No. 2006-0003, as well as Order R9-2007-0005, subsequently adopted by Regional Board 9, the San Diego Region. These Orders mandate that all Federal & State agencies, municipalities, counties, districts, and other public entities that own or operate sanitary sewer systems greater than one mile in length that collect and/or convey untreated or partially treated wastewater to a publicly owned treatment facility in the State of California develop an appropriate SSMP development plan and schedule. As per the provisions outlined in Section D, 14 of SWRCB Order No. 2006-0003, the City Council, after allowing for the appropriate time for public presentation and review shall review, and consider for adoption the Sanitary Sewer Management Plan. Environmental Review '1 N/A Financial Statement No Financial impact to the City Approved By: Finance Director Account No. STAFF RECOMMENDATION Adopt the Sanitary Sewer Management Plan (SSMP). BOARD I COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. Sanitary Sewer Management Plan is on file in the office of the City Clerk I. Resolution NO. 2007 - 246 A-200 (9/99) RESOLUTION NO. 2009 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE SANITARY SEWER MANAGEMENT PLAN (SSMP) DEVELOPMENT PLAN AND SCHEDULE, AS REQUIRED BY STATE WATER RESOURCES CONTROL BOARD ORDER NO. 2006-003 WHEREAS, on July 10, 2007, the City Council issued Resolution No. 2007-159, authorizing the execution of an agreement with Infrastructure Engineering Corporation to provide engineering consultant services for the City's Sewer Management Plan (SSMP) preparation; and WHEREAS, the development of a SSMP allows the City to comply with the terms of the State of California Water Resources Control Board (SWRCB) Order No. 2006-0003, as well as Order No. R9-2007-0005, subsequently adopted by Regional Board 9, the San Diego Region. These Orders mandate that all Federal and State agencies, municipalities, counties, districts, and other public entities that own or operate sanitary sewer systems greater than one mile in length that collect and/or convey untreated or partially treated wastewater to a publicly owned treatment facility in the State of California develop an appropriate SSMP development plan and schedule; and WHEREAS, to support the implementation of the SSMP, a Development Plan and Schedule .was prepared by Infrastructure Engineering Corporation. As presented in the Technical Memorandum No. 1 — SSMP Development Plan and Schedule, the Plan addresses all required components of the SSMP, as outlined in SWRCB Order No. 2006-0003, while allowing for the appropriate time for public presentation and review; and WHEREAS, pursuant to the provisions outlined in Section D, 14 of SWRCB Order No. 2006-0003, the City's "program to implement the SSMP must be certified by the City to be in compliance with the requirements set forth above and must be presented to the City's governing board for approval at a public meeting". NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves the Sanitary Sewer Management Plan (SSMP) Development Plan and Schedule, on file in the office of the City Clerk, as required by State Water Resources Control Board Order No. 2006-003. PASSED and ADOPTED this 18th day of August, 2009. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk George H. Eiser, III City Attorney RESOLUTION NO. 2007 — 246 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE SANITARY SEWER MANAGEMENT PLAN (SSMP) DEVELOPMENT PLAN AND SCHEDULE, AS REQUIRED BY STATE WATER RESOURCES CONTROL BOARD ORDER NO. 2006-003 WHEREAS, on July 10, 2007, the City Council issued Resolution No. 2007-159, authorizing the execution of an agreement with Infrastructure Engineering Corporation to provide engineering consultant services for the City's Sewer Management Plan (SSMP) preparation; and WHEREAS, the development of a SSMP allows the City to comply with the terms of the State of California Water Resources Control Board (SWRCB) Order No. 2006-0003, as well as Order No. R9-2007-0005, subsequently adopted by Regional Board 9, the San Diego Region. These Orders mandate that all Federal and State agencies, municipalities, counties, districts, and other public entities that own or operate sanitary sewer systems greater than one mile in length that collect and/or convey untreated or partially treated wastewater to a publicly owned treatment facility in the State of California develop an appropriate SSMP development plan and schedule; and WHEREAS, to support the implementation of the SSMP, a Development Plan and Schedule was prepared by Infrastructure Engineering Corporation. As presented in the Technical Memorandum No. 1 — SSMP Development Plan and Schedule, the Plan addresses all required components of the SSMP, as outlined in SWRCB Order No. 2006-0003, while allowing for the appropriate time for public presentation and review; and WHEREAS, pursuant to the provisions outlined in Section D, 14 of SWRCB Order No. 2006-0003, the City's "program to implement the SSMP must be certified by the City to be in compliance with the requirements set forth above and must be presented to the City's governing board for approval at a public meeting". NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves the Sanitary Sewer Management Plan (SSMP) Development Plan and Schedule, attached hereto as Exhibit "A", as required by State Water Resources Control Board Order No. 2006-003. PASSED and ADOPTED this 6th day of Nove(mtfer, 07. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: A / / ✓ Mic ael R. Dalia, 1 ity Clerk George H. Erser, III City Attorney City of National City Sewer System Management Plan, Volume I Draft Report April 2009 Page 4 of 51 EXECUTIVE SUMMARY On May 2, 2006, after several years of public discussion and planning, the State Water Resources Control Board (SWRCB) adopted Order No. 2006-0003, a General Waste Discharge Requirement (WDR) for all publicly owned sanitary sewer collection systems in California with more than one (1) mile of sewer pipe. The goal of Order No. 2006-0003 is to provide a consistent statewide approach for reducing Sanitary Sewer Overflows (SSOs) by requiring that: 1. In the event of an SSO, all feasible steps be taken to control the released volume and prevent untreated wastewater from entering storm drains, creeks, etc. 2. If an SSO occurs, it must be reported to the SWRCB using an online reporting system developed by the SWRCB. 3. All publicly owned collection system agencies with more than 1 mile of sewer pipe in the State must develop a Sewer System Management Plan (SSMP). This critical component of Order No. 2006-0003 is the development of a Sewer System Management Plan (SSMP). There are eleven specific "milestones" identified in the schedule that relate to the elements required in the WDR. The eleven milestones, and the applicable schedule for the City of National City (City), include: 1. SSMP Development Plan and Schedule (November 2, 2007) 2. Goals and Organization Structure (November 2, 2007) 3. Legal Authority (May 2, 2009) 4. Operation and Maintenance Program (May 2, 2009) 5. Design and Performance Standards (August 2, 2009) 6. Overflow Emergency Response Program (May 2, 2009) 7. Fats, Oils and Grease Control Program (May 2, 2009) 8. System Evaluation and Capacity Assurance Plan (August 2, 2009) 9. Monitoring, Measurement, and Program Modifications (August 2, 2009) 10. SSMP Program Audits (August 2, 2009) 11. Communication Program (August 2, 2009) 12. Final SSMP, incorporating all the SSMP elements. (August 2, 2009) City of National City Sewer System Management Plan, Volume I Draft Report April 2009 Page 5 of 51 Although it is the SWRCB's intent that Order No. 2006-0003 be the primary regulatory mechanism for sanitary sewer systems statewide, the Order allows each regional board to issue more stringent or more prescriptive WDRs for sanitary sewer systems within their respective jurisdiction. The City is within Region 9, the San Diego Region, which adopted Order R9-2007-0005 on February 14, 2007 that contains additional provisions that all sewage collection agencies within Region 9 must adhere to, specifically relating to private lateral sewage discharges reporting. 3 City of National City, California COUNCIL AGENDA STATEMENT EETING DATE: August 18, 2009 AGENDA ITEM NO. 10 �TEM TITLE Resolution of the City Council of the City of National City approving an operating agreement between the National School District and the National City Public Library to provide a Before and After School Education and Safety Program with the Library to receive $979,698 annually. PREPARED BY M. Duong x5882 ) DEPARTMENT Library EXPLANATION Please see attached memorandum Environmental Review ✓ N/A Financial Statement Approved By: CJ ,un Finance rector Account No. 246-0000-3463 1 STAFF RECOMMENDATION Adopt resolution BOARD / COMMISSION RECOMMENDATION Approved by the Library Board of Trustees on August 12, 2009. ATTACHMENTS ( Listed Below) Resolution No. Memorandum Resolution Operating Agreement RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY RATIFYING AN OPERATING AGREEMENT BETWEEN THE NATIONAL SCHOOL DISTRICT AND THE NATIONAL CITY PUBLIC LIBRARY TO PROVIDE AN AFTER -SCHOOL AND BEFORE -SCHOOL EDUCATION AND SAFETY PROGRAM WHEREAS, the National School District has implemented or will be implementing an After -School and Before -School Education and Safety Program; and WHEREAS, the District desires to enter into an Agreement with the National City Public Library to provide an extended school day child care and education program both before and after school at all of its schools; and WHEREAS, the Library is ready, willing and able to perform the services, pursuant to the proposed Agreement, beginning July 1, 2009 and concluding June 30, 2010, with an automatic annual 12-month renewal, subject to an adjustment in fee due to the Library's increased operating costs, as approved by the Library Board of Trustees; and WHEREAS, the proposed Agreement further provides that the District shall pay to the Library for its services the sum of $979,698 annually; and WHEREAS, the proposed Agreement further provides that subject to the District's and the Library's agreement conceming the Library's fee, the District may request that the Library operate the Camp Wings Summer School Program. WHEREAS, the Library Board of Trustees approved the Agreement at their meeting of August 12, 2009. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City recommends that the National City Public Library Board of Trustees enter into an Agreement with the National School District to provide an After -School and Before -School Education and Safety Program, and potentially a Summer School Program. BE IT FURTHER RESOLVED that the Library Board of Trustees is authorized to enter into amendments of the Agreement relating to the type and quantity of services provided, and all amendments involving amounts of up to $25,000, and that all amendments involving amounts greater than $25,000 shall require approval by the City Council. PASSED and ADOPTED this 18th day of August, 2009. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael Della, City Clerk George H. Eiser, III City Attorney REPORT The Operating Agreement previously entered into between the National City Public Library and the National School District called for the Library to provide an after - school day care, education, and safety program for kindergarten to 6`h grade students. The proposed Operating Agreement would include a before -school program as well, although the entire program would still be referred to as "after -school." The Library would receive $979,698 for operating the program. The proposed Agreement would also provide that, subject to the agreement of the Library and the School District as to the library's fee, the Library may, upon the School District's request, operate a summer school program known as "Camp Wings". The term of the proposed Operating Agreement is from July 1, 2009 through June 30, 2010. The Agreement will automatically renew at the end of each term for an additional one year, subject to any adjustment in the fee due to the Library's increased operating costs, as approved by the Library Board. Either party may terminate the Agreement upon 30 days' written notice prior to the other party. The proposed resolution, by which the City Council would ratify the Library Board's approval of the Agreement, provides that the Library Board of Trustees is authorized to enter into amendments of the Agreement relating to the type and quantity of the services being provided, and involving amounts up to $25,00, and that all amendments involving amounts in excess of $25,000 shall be approved by the City Council. As in the past, the Operating Agreement will be entered into by the National City Public Library, and all fees will be paid to the Library, instead of to the City. 06-00-9065-100-0000-1000-5800-100-026 AFTER -SCHOOL EDUCATION AND SAFETY PROGRAM OPERATING AGREEMENT CONTRACT #CT 1752 This AGREEMENT is made by and between National School District, herein called, "District," 1500 "N" Avenue, National City, California 91950, and National City Public Library, herein called "Contractor," 1401 National City Blvd., National City, California 91950 WITNESSETH WHEREAS, National School District has implemented or will be implementing the After -School Education and Safety Program ("ASESP"); and WHEREAS, District desires to engage the National City Public Library, (or Contractor) to provide an extended school day child care and education program pursuant to ASESP at all of its schools; and WHEREAS, Contractor is ready, willing and able to perform the services detailed in this Agreement, beginning July 1, 2009, and concluding June 30, 2010. NOW, THEREFORE, District and Contractor mutually agree as follows: 1. DEFINITIONS: For the purposes of this Agreement, the following terms shall have the meanings indicated: a) "District" - National School District b) "Contractor" - National City Public Library c) "State" - State -funded After -School Education and Safety Program grant which constitutes the source of funding under this Agreement. 2. SCOPE OF SERVICES: Contractor hereby agrees to perform the services specifically listed below: a) Operation of Program: Operate a school -age child care program pursuant to ASESP ("Program") that provides safe, healthy, recreational, and educational activities at each of the District's schools for children enrolled in the Program. Contractor agrees to commit resources to ensure the delivery of an integrated, age -appropriate child care and education Program. b) Ilours of Operation: While District schools are in regular sessions, the Program shall operate before school (6:30 — 8:00 a.m. or 7:00 — 8:30 a.m. dependent upon the school) and after school dismissal time (beginning around 1:00 to 3:10 p.m., dependent upon the school site), for the remainder of the day until 6:00 p.m., on a Monday through Friday schedule. Daily hours of operation must be posted by Contractor and he visible to the participants and parents of the Program. Operating hours will be monitored by daily sign -in and sign -out sheets and reported monthly to the District and to the State by the Contractor. c) Holidays: The Program will not operate during scheduled school holidays and scheduled vacation periods unless funds are made available, and Contractor agrees through an amendment to this Agreement to perform during such periods. d) Summer Program: District may request that Contractor operate the Camp Wings Summer School Program, subject to District and Contractor mutually agreeing to the Contractor's fee and implementing an amendment to this Agreement. e) Use of Facilities: At each school site, Contractor may use such portions of the school site and school facilities as are agreed upon with the principal of the school. Page 2 of 12 Contractor agrees to keep school sites and school facilities it uses clean and organized, and to cooperate with other groups using the sites and facilities. f) Compliance: If for any reason, the Program is not operating at the times and days agreed upon, the Contractor shall forfeit payment for those times that the Program is not operating and will be subject to teimination of the Agreement at District's sole option. g) Staffing: Contractor shall provide a coordinator to oversee and coordinate Program activities in cooperation with District staff. Each Program site must be staffed daily, at a minimum, by the required student to staff ratio of one adult to twenty students. Designated coaches and/or site staff must be trained in CPR and First Aid. Training will be provided by National School District. Contractor is encouraged to hire instructional assistants and credentialed teachers from the school site to assist with the Program. Volunteers to assist with tutoring, literacy, and mentoring may be added in addition to paid staff. h) Experience: Site supervisors must have prior supervisory experience. i) Fingerprinting: Contractor agrees to provide District with written certification that Contractor has complied with the fingerprinting and criminal background investigation requirements of the California Education Code with respect to all Contractor's employees and volunteers who may have contact with District students in the course of providing services under the Program. Contractor shall provide written verification stating that none of its employees or volunteers who may have contact with District students has been convicted of a violent or serious felony as defined in the Education Code. Page 3 of 12 j) First Aid/CPR: At all times, there shall be personnel on site trained in First Aid/CPR, safety, and emergency procedures. The leaders must have proof of their First AidiCPR card at the site. k) Uniform/Dress Code: On -site personnel will be required to have a professional appearance, wearing a name badge and vest which identifies them and the agency for which they work. 1) Supervision: The Contractor is required to have its agency supervisorial management personnel visit each Program site at least once weekly. The District or designee will periodically visit sites unannounced. m) Health: Contractor staff and volunteers are required to have a negative tuberculin test or x-ray within the last three (3) years. n) Safety: Safety is a critical element in the Programs. All safety rules and emergency procedures followed during the school day apply to the Program. o) Emergency Contact Forms: At every site Contractor must have parents fill out emergency contact cards and medical release forms. These forms must be kept on file at the school site by Contractor within easy access. p) Emergency Procedures/Accident Reports: The Contractor will adhere to emergency procedures at each school site. A formal reporting process for all accidents, incidents and complaints must be approved by the District and communicated to and posted for parents. Any serious accident, i.c., injury involving medical attcntion, must be reported in writing to the school principals and the Contractor's corporate office. A written accident or incident report must be sent within three (3) days. All minor Page 4 of 12 accidents or injuries are reported on an "Ouch Slip," with copies provided to the District, school site, and parent/guardian. q) School Relations: Developing a close relationship with school staff is critical to the success of the Program. Contractor will communicate regularly with school staff to ensure school staff is fully aware of Program activities. r) Collaboration: Contractor will collaborate with other appropriate persons and entities to provide an effective, meaningful Program in the National School District. Such collaboration shall include, but not be limited to, the National City Public Library, parents and local community partners. Contractor will promote cooperation and coordination among and between school sites and all personnel involved in Program activities. s) Amendment: Any modification of the type or quantity of services, or the fees for the services to be provided by Contractor, shall require a mutually agreeable amendment to this Agreement. 3. DISTRICT RESPONSIBILITIES: In connection with this Agreement District shall perform the following activities: a) Facilitate communication of the Program mission, goals and objectives to all participating school sites, and in particular to principals, teachers, other school staff, parent -teacher organizations, school site councils and parents. b) Promote cooperation and coordination among and between school sites and all personnel involved in Program activities. c) Designate a staff liaison as a key contact for Contractor. Page5of12 d) Coordinate the daily delivery of snacks for participating children through Child Nutrition Services. e) Negotiate and implement contracts for karate, dance and music coaches. 4. PERIOD OF PERFORMANCE: The services to be performed by Contractor, as set forth herein, shall commence on July 1, 2009, and end on June 30, 2010, unless terminated sooner in accordance with the provisions of this Agreement. This Agreement will automatically renew each year for an additional 12-month period contingent on the Parties mutual agreement to any adjustment in fees due to increased or decreased operating costs. At any time either Party may choose to terminate the contract by providing thirty (30) days written notice prior to the end of the term. 5. FEE: The District shall pay to the Contractor as full consideration for the faithful performance of the contract, subject to any additions or deductions as provided in the contract documents, and including any applicable sales, use of other taxes or costs, the sum of ($979,698), Nine Hundred Seventy Nine Thousand Six Hundred Ninety Eight Dollars and No Cents. 6. EXPENDITURES: The Contractor will be required to provide substantiation for all expenditures claimed for reimbursement in the form of receipts and invoices. Contractor is allowed to charge a 5% administrative markup over claimed expenditures. 7. METHOD OF PAYMENT: Contractor shall be reimbursed for eligible expenditures within thirty days of receipt of invoices at the end of each quarter. Invoices shall be submitted for the quarters ending on September 30, 2009, December 31, 2009, March 31, 2010, and the Last day of the school year. In order to receive reimbursement for expenditures, quarterly invoices must be accompanied by written documentation substantiating claimed Page 6 of 12 expenditures. The final payment to Contractor shall be withheld until the final invoice with substantiating documentation has been received by the District. 8. STATE REQUIREMENTS: Contractor shall comply with all requirements sct forth by the State Department of Education, After -School Education and Safety Program grant. This will include, but not be limited to, program reporting requirements, contract compliance, allowable expenses, fiscal reporting and program evaluations. 9. AUDITS: District will conduct an audit review of Contractor's Program annually during the tern of this Agreement. Additionally, Contractor's Program may be audited by District at any time within three (3) years following termination of this Agreement. If Contractor is subject to audits from a source or sources other than the District, Contractor shall provide a copy of the audit to the District within thirty (30) days of completion of the audit. 10. DISCONTINUANCE OF PROGRAM: The District reserves the right to discontinue the Program at its sole discretion, for reasons including, but not limited to the following: regular low attendance (25 students or less), poor program quality, or at the request of the school principal. In such cases, a 30-day written notice will be provided to the Contractor. 11. RECORDS: Contractor shall maintain detailed administrative and fiscal records as required by the District in writing during the term of this Agreement. Contractor shall allow National School District authorized agents to inspect its premises, books, accounting documents, payrolls, and other Program records for the purpose of auditing, monitoring, or evaluating the Program. Contractor shall store such records and documents for a period of three (3) years after submission of the final expenditure report, or until all audit findings have been resolved, whichever is longer. During this period, the District or its authorized agents, shall have access to such records and documents at any time. After the three (3) years storage period Page 7 of 12 has expired or all audit findings have been resolved, Contractor shall in either case, notify the District of its intent to dispose of Program records before any action is taken. 12. INTEGRATED AGREEMENT: This Agreement and the exhibits and references incorporated herein fully express all understandings of the Parties concerning the matters covered herein, and supersede any prior agreements, negotiations, and communications, oral or written, between the parties. No change, alteration, or modification of the terms or conditions of this Agreement, and no verbal understanding of the Parties, their officers, agents, or employees, shall be valid unless it is made in the form of a written change or amendment to this Agreement, is signed by all Parties, and is executed in accordance with procedures described herein. 13. EQUAL OPPORTUNITY PROGRAM REQUIREMENTS a) Equal Employment Opportunity: Contractor hereby agrees to comply with Title VII of the Civil Rights Act of 1964, as amended, Executive Orders 11246, 11375, and 12086; the California Fair Employment Practices Act, and any other applicable Federal and State laws and regulations hereafter enacted. Contractor will not discriminate against any employee or applicant for employment on any basis prohibited by law. Upon request by District, Contractor agrees to submit a current Workforce Report or an Equal Employ- ment Opportunity Plan. Contractor understands that failure to comply with the above requirements and/or submitting false information in response to these requirements, may result in termination of this Agreement. b) Nondiscrimination: Contractor agrees not to discriminate in any manner against any person or persons on account of race, color, religion, gender, sexual orientation, medical status, national origin, age, marital status, or disability in Contractor's performance of Page 8 of 12 this Agreement, including, but not limited to, the providing of services, privileges, facilities, advantages, and accommodations. c) Equal Contracting Opportunity: Contractors shall ensure that any subcontractors comply with these provisions. Nothing in this section shall be interpreted to hold a prime contractor liable for any discriminatory practice of its subcontractors. 14. INDEPENDENT CONTRACTOR: Contractor is an independent Contractor hereunder, and nothing contained herein shall be construed as creating a relationship of employer and employee between the Parties. Contractor shall notify all prospective subcontractors of its independent status hereunder. 15. ASSIGNABILITY: Contractor shall not assign or subcontract any of the work or services to be performed under this Agreement, or expend any funds for such purpose without prior written approval of the District. Contractor shall provide the District copies of all subcontracts entered into under the terms of this Agreement. 16. HOLD HARMLESS: Contractor agrees to defend, indemnify, protect and hold the District and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to Contractor's employees, agents or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that Contractor's duty to indemnify and hold harmless, shall not include any claims or liability arising from the established sole negligence or willful misconduct of the District, its agents, officers or employees. Page 9 of 12 17. INSURANCE: Contractor shall obtain and keep in force during the period of this Agreement, a policy of comprehensive public liability insurance or lawful self -insured status, which insures Contractor against any and all claims of liability, including accident, injury or death arising from the provision of Program services, or from the ownership, use, operation, maintenance, or administration of School District premises and all areas appurtenant thereto. Such insurance or self-insurance shall be in an amount of not less than ONE MILLION DOLLARS ($1,000,000) for any injury or death of, any person or persons in any accident or occurrence, and shall name District as an additional insured. 18. WORKERS' COMPENSATION: Contractor agrees to procure and maintain in full force and effect Workers' Compensation Insurance covering its employees and agents while these persons are participating in the activities hereunder. In the event a claim under the provisions of the California Workers' Compensation Act is filed against District by a bona fide employee of Contractor participating under this Agreement, Contractor agrees to defend and indemnify the District from such claim. Contractor may comply with the provisions of this Section 18 by maintaining its lawful self -insured status during the terms of this Agreement. 19. DRUG -FREE WORKPLACE: Contractor shall publish a statement, notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in the work place, and specifying the actions that will be taken against employees for violations of the prohibition. Contractor shall establish a drug -free awareness program to inform employees about all of the following: a) The dangers of drug abuse in the workplace b) The organization's policy of maintaining a drug -free workplace Page 10 of 12 c) Any available drug counseling, rehabilitation, and employee assistance program d) The penalties that may be imposed upon employees for drug abuse violations Contractor shall post the drug -free policy in a prominent place. Contractor shall include language in each subcontract executed in connection with this Agreement which indicates the subcontractor's agreement to abide by provisions of the drug -free workplace program. Contractor and subcontractors shall be individually responsible for their own drug -free workplace program. 20. TERMINATION OF AGREEMENT: District or Contractor may terminate this Agree- ment by giving written notice to the other Party thirty (30) days prior to the effective date of termination. District may terminate this Agreement at any time if Contractor fails to meet or fulfill its obligations hereunder. In the event of termination by either Party, District's liability shall be limited to reimbursement for the eligible monthly expenditures for work or services performed, plus administrative markup, up to the date of termination. 21. EVALUATIONS: The effectiveness and success of each program will be measured by overall compliance with Agreement terms, daily attendance, variety and interest of program content, and satisfaction of participants, parents and school administrators. A desired outcome will be improved test scores and increased daily school attendance as measured by the District. Additional evaluations may be required by the State as terms of the grant requirement. Contractor agrees to cooperate and comply with all evaluations of the Program. 22. JOINT ADVISORY PANEL: The Parties agree that a joint advisory panel composed of the Literacy Coordinator and WINGS Coordinator from the National City Public Library, and the Assistant Superintendent for Educational Services and the Extended Learning Page 11 of I2 Opportunities Coordinator from the National School District, shall provide advise with respect to the Program provided for by this Agreement. NATIONAL CITY PUBLIC LIBRARY NATIONAL SCHOOL DISTRICT Signature Signature Minh Duong Print Name Print Name City Librarian Title Title Date Governing Board Approval Date Page 12 of 12 City of National City, California COUNCIL AGENDA STATEMENT *EYING DATE August 18, 2009 AGENDA ITEM NO. 11 (TEM TITLE Resolution of the City Council of the City of National City ratifying the acceptance of a $76,380 grant from the California State Library to fund the California Library Literacy Services AmeriCorps Initiative Project for fiscal year 2009-2010. PREPARED BY M. Duong x5882 DEPARTMENT Library EXPLANATION This grant is awarded by the California State Library, through the Library Services and Technology Act (LSTA), as tandem funding to support the California Library Literacy Services AmeriCorps Initiative Project. The current California Library Literacy Services AmeriCorps Initiative Project, funded partly by CaliforniaVolunteers, runs from July 1, 2008 to December 30, 2009. This LSTA grant provides additional funding resources to help defray the operating costs of running the entire AmeriCorps project. Environmental Review ✓ N/A Financial Statement Account No. 320-31333-3463 STAFF RECOMMENDATION Approval recommended. BOARD / COMMISSION RECOMMENDATION Approved by the Library Board of Trustees on August 12, 2009. ATTACHMENTS ( Listed Below) Resolution No. opy of Award Letter and Agreement RESOLUTION NO. 2009 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY RATIFYING THE ACCEPTANCE OF A $76,380 GRANT FROM THE CALIFORNIA STATE LIBRARY TO FUND THE CALIFORNIA LIBRARY LITERACY SERVICES AMERICORPS INITIATIVE PROJECT FOR FISCAL YEAR 2009 - 2010 WHEREAS, the Califomia State Library, through the Library Services and Technology Act, has approved the grant application of the National City Public Library for the California Library Literacy Services Americorps Initiative Project, in the amount of $76,380 for Fiscal year 2009 — 2010; and WHEREAS, it is necessary for the City to certify the grant of funds, and to ratify the acceptance of the grant subject to the terms and conditions set forth in the Notification of Grant Award. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby certifies the grant of funds in the amount of $76,380, and ratifies the acceptance of the grant subject to the terms and conditions set forth in the Notification of Grant Award. PASSED and ADOPTED this 18th day of August, 2009. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney STAT I BRARY PRESERVING OUR HERITAGE, SHAPING OUR }UTURE July 7.2009 Minh Duong, City Librarian National City Public Library 1401 National City Boulevard National City, CA 91950-3314 Dear Ms. Duong: We are pleased to approve the grant application for the California Library Literacy Services Americorps Initiative for a total of$76, 380 in federal Library Services and Technology Act (LSTA) funds. We are sorry to hear that your Federal program is ending. It's been a pleasure being able to support such a successful program. In order to support you. a webinar will be held at the end of July to walk through the process and all of the forms you will need to successfully manage your grant. More details will be sent soon. he Library Development Services Staff is ready to assist you in making your project a success. State processing of grant payments can require 6-8 weeks before you receive your check. Best wishes for a successful project year. Sincerely Yours, 4fiA Q-414 Stacey A. Aldrich Acting State Librarian of California Enclosures cc: Colette Moody Carla Lehn Susan Empizo THE BASICS — YOUR LSTA GRANT AWARD The following provides all of the basic information about your grant and managing your grant. Award #: 40-7330 IMLS #: LS-00-09-0005-09 Library: National City Public Library Project Title: California Library Literacy Services Americorps Initiative Award Amount: $76,380 2009/10 LSTA APPROVED BUDGET Salaries and Benefits 21,363 Materials 0 Equipment (Items over $5,000) 0 Operating Expenses 55,017 Project Total 76,380 Indirect Cost (UP TO 10%) 0 Grant Total $76,380 Start Date: July 1, 2009 End Date: June 30, 2010 On June 30, 2010, this project will be officially closed and no new expenditures may be generated, nor may any additional funded project activities occur. This project is allowed 60 days to liquidate encumbrances that were incurred prior to June 30 and all unexpended and encumbered funds must be returned by August 30, 2010. REPORTING porting on financial and program activities is required as follows: iancial: quarterly within 30 days of each quarter. The final liquidation report, if required, is due and must be submitted by September 15, 2010. Program: a 6 month narrative update of the progress is due January 31, 2010 and a final narrative report is due within 30 days after the close of the project, by July 30, 2010. All required reporting materials will be located by July 20, 2009 on the California State Library's website at http://www.library.ca.gov/grants/lsta/manage.html. The forms, along with instructions, will be on the website under the heading "Competitive and Statewide Grants 2009/10." This letter and the enclosed list of LSTA procedural requirements amend the Consolidated Application/Grant Award Certification document and must remain a part of all your existing copies. Failure to provide timely reports is a serious breach of a grant recipient's administrative duty under the grant program, which may result in federal audit exceptions against the state and the loss of LSTA funds. PAYMENTS Please note this clarification regarding payments. If your full grant amount is $20,000 or more, ten percent (10%) of the grant award is withheld until the end of the project period. It is payable only if the grant recipient fulfills all project reporting requirements and expends all funds, or returns all unspent grant funds, by the time specified in the grant program. CONTACT We want your project to be successful. The following staff person will be your contact for your project. Please work with this consultant in implementing your project. Grant Monitor: Carla Lehn Phone Number: Email Address: (976)-65T-7743 clehn@library.ca.gov 13952 1 File#F-3 7/\P08 California State Library Budget Office P.O. Box 942837 Sacramento, CA 94237-0001 LSTA GA Page 1 LSTA GRANT AWARD #40-7330 Project Title: CrLibraryLiteracy SFrvicPV ireirorp System/Agency: National City Public Library CONSOLIDATED APPLICATION NOTIFICATION OF GRANT AWARD Library Services and Technology Act I. The recipient designated above hereby certifies to the California State Library, for a grant of funds in the amount of $76,380. This block grant will provide library services as set forth in the LSTA Service Project Application as approved and/or as amended by the California State Librarian. TERMS AND CONDITIONS The recipient agency and its named or designated fiscal agent hereby assures the California State Library that: 1. It is mutually understood between the parties that this grant award may have been written before ascertaining the availability of congressional appropriation of funds, for the mutual benefit of both parties in order to avoid program and fiscal delays which would occur if the grant award were executed after that determination was made. 2. This grant award is valid and enforceable only if sufficient funds are made available to the State by the United States government for the Fiscal Year 09/10 for the purposes of this program. In addition, this grant award is subject to any additional restrictions, limitations, or conditions enacted by the Congress or any statute enacted by the Congress which may affect the provisions, terms or funding of this grant award in any manner. 3. It is mutually agreed that if the Congress does not appropriate sufficient funds for the program, this grant award shall be amended to reflect any reduction in funds. 4. The California State Library has the option to amend the grant award to reflect any reduction of funds. 5. Upon the grant award approval by the State Librarian, one (1) completed set of this CONSOLIDATED APPLICATION NOTIFICATION OF GRANT AWARD and RECIPIENT CERTIFICATION will be sent to the subgrantee. Such copy shall be the officially approved agreement for the conduct of the approved project. 6. "Subgrantee" means the government or other legal entity to which a subgrant is awarded and which is accountable to the grantee for the use of the funds provided. 7. The subgrantee will make reports to the State Librarian in such form and containing such information as may be required to enable the California State Library to porformits duties. The sub -grantee will-keepsuchrecords-and afford such access as the California State Librarian, California State Library may find necessary to assure the correctness and verification of such reports. LSTA GA Page 2 California State Library Budget Office LSTA GRANT AWARD #40-7330 P.O. Box 942837 Sacramento, CA 94237-0001 Project Title: CA Library Literacy Services Americorps Initiative System/Agency: National City Public Library CONSOLIDATED APPLICATION NOTIFICATION OF GRANT AWARD, LSTA (continued) 8. The control of funds and title to property derived therefrom shall be in a subgrantee agency for the uses and purposes provided; a subgrantee agency will administer such property and funds and shall apply funds only for the purposes for which they were granted. 9. The expenditure under this program will not be used to supplant subgrantee effort. 10. This aggreement is entered into under provisions of the Library Services and Technology Act, Public Law 104-208 on September 30, 1996; and Congressional Record - House, H11644-H11728 on September 28, 1996, H12266-H12267 on October 3, 1996; and 45 CFR 1183, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments, October 1, 1994. 11. Performance of the provisions of this agreement is subject to the conditions and availability of funds as awarded by the State Librarian under said Act. 12. The terms of this agreement shall be from upon execution to and including June 30, 2010. But shall be subject to termination by either party by giving written notice to the other party at least thirty (30) days prior to the effective date of termination. In the event this agreement is so terminated, the subgrantee shall deliver to the State Librarian copies of all reports and/or materials prepared up to the date of termination, and the State Librarian shall determine, and pay the subgrantee for the necessary and appropriate expenditures and obligations to the date of termination which have not been covered by prior installments heretofore paid to the subgrantee. If funding has been advanced to the subgrantee, any unobligated balances, as determined by the State Librarian, shall be returned to the State Library within 60 days of the notice of termination. 13. The State Librarian is empowered to review, audit, and inspect the project for compliance with this agreement. LIMITATION OF EXPENDITURE Expenditure for all projects must conform to the approved budget, as amended, and with applicable Federal and State laws and regulations. California State Library Budget Office P.O. Box 942837 Sacramento, CA 94237-0001 LSTA GA Page 3 LSTA GRANT AWARD #40-7330 Project Title: CA Library Literacy Services Americorps Initiative System/Agency: National City Public Library CONSOLIDATED APPLICATION NOTIFICATION OF GRANT AWARD, LSTA, continued Any of the sums listed as approved and/or amended appearing under the categories in the approved budget may be adjusted by the authorized project personnel of the subgrantee to increase any allotment not more than 10% with the understanding that there will be corresponding decreases in the other allotments so that the total amount paid by the California State Library to the subgrantee under this agreement shall not exceed $76,380 and shall be expended/encumbered in the period ending June 30, 2010. REPORTS AND CLAIMS It is the responsibility of the recipient of these instructions to see that the proper individual to supply the required reports and claims receives the instructions and makes the required reports and claims to the California State Library. I. The subgrantee shall be responsible for the submission of quarterly Narrative Reports, unless otherwise noted in the State Librarian's award letter, on the progress and activities of the project, in triplicate, to the California State Library within 30 days following the end of each quarter. II. The subgrantee shall submit quarterly Financial Reports, in triplicate to the California State Library. These reports are to reflect the expenditures made by the subgrantee under the agreement. The financial reports are to be submitted within 30 days following the end of the quarter. III. To obtain payment hereunder the subgrantee shall submit authorized claims provided by the California State Library for that purpose, on each of the following mentioned dates for payment, and the California State Library agrees to reimburse the Library as soon thereafter as State fiscal procedures will permit. IV. The final 10% of the grant award is payable only if the grant recipient fulfills all project reporting requirements and returns all unspent grant funds by the time time specified in the award. Failure to provide timely reports is a serious breach of a grant recipient's administrative duty under the award, which may result in federal audit exceptions against the state and the loss of LSTA funds. The State Librarian may extend the final deadline for good cause. Request for extension beyond the final deadline of June 30 must be received at least 30 days prior to that deadline at the State Librarian's office. Payment will be provided to cover the expenditures incurred by the subgrantee for the project in the following manner: $34,371 upon execution of the agreement and submission of claim by fiscal agent $34,371 on or about October 30, 2009 $7,638 on the submission of all reporting and return of funds If the amount of payment made by the California State Library shall exceed the actual expenses during the term of this agreement, as reflected in the financial reports to be filed by the subgrantee, the subgrantee shall refund to the California State Library the amount of such excess payment. California State Library Budget Office P.O. Box 942837 Sacramento, CA 94237-0001 LSTA GA Page 4 LSTA GRANT AWARD #40-7330 Project Title: CA Library Literacy Services Americorps Initiative System/Agency: National City Public Library NONDISCRIMINATION CLAUSE ADDENDUM 1. During the performance of this grant award, the recipient, subgrantee and its contractors shall not deny the grant award's benefits to any person on the basis of religion, color, ethnic group identification, sex, age, physical or mental disability, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical handicap, mental disability, medical condition, marital status, age (over 40) or sex. Subgrantee shall insure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. 2. Subgrantee shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code, Section 1290 et. seq.), the regulations promulgated thereunder (Cal. Admin. Code, Tit. 2, Sections 7285.0 et. seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code, Sections 11135-11139.5), and the regulations or standards adopted by the awarding state agency to implement such article. 3. Subgrantee or recipient shall permit access by representatives of the Department of Fair Employment and Housing and the awarding state agency upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours notice, to such of its books, records, accounts, other sources of information and its facilities as said Department or Agency shall require to ascertain compliance with this clause. 4. Recipient, subgrantee and its contractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. 5. Subgrantee shall include the nondiscrimination and compliance provisions of this clause in all contracts to perform work under the grant award. California State Library Budget Office P.O. Box 942837 Sacramento, CA 94237-0001 LSTA GA Page 5 LSTA GRANT AWARD #40-73 ' Project Title: CA Library Literacy Services Americorps Initiative System/Agency: National City Public Library CERTIFICATION REGARDING LOBBYING FOR GRANTS AND COOPERATIVE AGREEMENTS This certification is a prerequisite for making or entering into a grant or cooperative agreement over $100,000. Upon the acceptance of the grant award the subgrantee as required by Section 1352, Title 31 of the U.S. Code certifies to the best of his or her knowledge and belief, that: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the subgrantee, to any person for influencing or attempting to influence an officer or employee of Congress, or an employee of a Member of Congress in connection with the making of any Federal grant, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal grant or cooperative agreement. 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal grant or cooperative agreement, the subgrantee shall complete and submit Standard Form - LLL, 'Disclosure Form to Report Lobbying,' in accordance with its instructions. 3. The subgrantee shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subgrants, contracts under grants and cooperative agreements, and subcontracts) and that all subrecipients shall certify and disclose accordingly. LSTA Control # F-37 LSTA GRANT AWARD DOCUMENTATION Budget Citation Chapter 1, Item 6120-211-0890 LSTA Award #: 40-7330 Approval Date: 07/01/09 Project Title: CA Library Literacy Services Americorps Initiative Subgrantee: National City Public Library Funding Start Date: ** upon execution ** Approved Funds: $76,380 Term: upon execution - end of grant period Payments: $34,371 upon execution of agreement Schedule No. $34,371 on or about October 30, 2009 Schedule No. $7,638 on completion of all reporting Schedule No. requirements and return of abatements ropriation Encumbered (designate where applicable) Federal Fund Trust PCA #: 92980 Code: 702 For: FY 09/10 WP 08 Vendor Code: M674 Catalog number from Federal Catalog of Domestic Assistance#45.310 IMLS#: LS-00-09-0005-09 Matching: State: 34% Federal: 66% BUDGET CATEGORY APPROVED BUDGET REVISED REVISED SALARIES & BENEFITS MATERIALS EQUIPMENT OPERATING EXPENSES INDIRECT COSTS $21,363 $55,017 TOTAL $76,380 City of National City, California COUNCIL AGENDA STATEMENT EETING DATES 08-18-09 AGENDA ITEM NO. 12 ( TEM TITLE Resolution of the City Council of the City of National City Amending the Agreement Between The City Of National City And Meyers Nave Professional Law Corporation Expanding the Scope of Services and Adding a Not to Exceed Limit of $25,000 For Labor Negotiator Legal Services DEPARTMENT I Iuman Resources EXPLANATION Meyers Nave Professional Law Corporation (Meyers Nave) was engaged under the City Manager's authority in February, 2009. The agreement set forth a scope of work that includes the full range of duties associated with representing the City as the Lead Negotiator in the City's labor negotiations with the Police Officers' Association at a not to exceed dollar value of $25,000. Said negotiations have been protracted necessitating expenditures beyond what was originally anticipated. In addition to the above, prior to entering this agreement with Meyers Nave, the City of National City utilized the services of another law firm for twenty years. Moving to a new firm provided some uncertainty. Now satisfied with the services offered by Meyers Nave, the City Manager seeks to expand the scope to include the ability to utilize Meyers Nave in other labor negotiations and to seek generalized labor relations support and consultation as needed. This amendment will add an additional $25,000 to the not to exceed limit for a total of $50,000 Environmental Review ✓ N/A Financial Statement Legal services will be billed on an hourly basis. $25,000 has already been authorized. This amendment is for an additional $25,000 for a total not to exceed amount of $50,000. Account No. 001 409 000 213 STAFF RECOMMENDATION Authorize the Mayor to execute an amendment to the agreement between the City of National City and Meyers Nave Professional Law Corporation for legal services. BOARD ! COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. Agreement for Legal Services L A-200 (9/80) RESOLUTION NO. 2009 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND MEYERS NAVE PROFESSIONAL LAW CORPORATION IN THE NOT TO EXCEED AMOUNT OF $25,000 FOR LEGAL SERVICES PERTAINING TO LABOR NEGOTIATIONS WHEREAS, the City desires to retain a law firm to provide legal assistance in representing the City in labor negotiations; and WHEREAS, the legal services would include assistance in the negotiation, drafting and implementation of MOU's, including proactively providing advice on current legal trends and issues related to labor negotiations and agreements, and providing consultation as needed in the area of labor relations; and WHEREAS, the Meyers Nave Professional Law Corporation (the "Firm") is well - qualified to provide the legal services desired by the City, has provided a high quality of legal services to the City in the past, and is willing to provide the services currently sought by the City; and WHEREAS, an Amendment to the existing agreement between the City and the Firm has been proposed whereby the Firm would provide the aforementioned services through December 31, 2009 with an option to extend for three years upon mutual agreement of both parties, in the not -to -exceed amount of $25,000, for a total not to exceed amount under the existing agreement and the Amendment of $50,000. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute an Amendment to the existing agreement with the Meyers Nave Professional Law Corporation to provide, at a not -to -exceed cost of $25,000, legal services pertaining to labor negotiations, for a total not to exceed amount of $50,000. Said Amendment is on file in the office of the City Clerk. PASSED and ADOPTED this 18th day of August, 2009. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk George H. Eiser, III City Attorney FIRST AMENDMENT TO AGREEMENT FOR LEGAL SERVICES This First Amendment to the Agreement by and between the City of National City and Meyers Nave Professional Law Corporation, ("Meyers Nave") is entered into this th day of September, 2009, by and between the City of National City and Meyers Nave. RECITALS WHEREAS, the City of National City [City] and Meyers Nave previously entered into an agreement entitled Agreement by and between the City of National City and Meyers Nave Professional Law Corporation [Agreement], dated , 2009. for Meyers Nave to provide legal services related to labor negotiations to the City; WHEREAS, that Agreement provides that the City of National City determines the Scope of Services to be performed by Meyers Nave; WHEREAS, the City now seeks to increase the Scope of Work originally undertaken and Meyers Nave seeks to perform this increased work; and, WHEREAS, the City and Meyers Nave have negotiated and agreed upon the additional compensation associated with this increased work. AGREEMENT NOW, THEREFORE, the City and Meyers Nave agree as follows: 1. This First Amendment increases the Scope of Work specified in the Agreement to add the following to Article 2 of the Agreement: provide consultation and advice as needed in the area of labor relations; advise City on legal issues as needed in the interpretation and application of the terms of the City's various memorandums of understanding with its Labor organizations; and, advise the City on the development or revision of policies in a manner consistent with current labor trends and labor law. 2. Article 3, paragraph C contains a not to exceed amount of $25.000 which the parties are increasing by way of this First Amendment by an additional twenty-five thousand dollars ($25,000) for a new total amount not to exceed fifty -thousand dollars ($50,000). 3. Article 12 sets for the term of the Agreement and contains a provision allowing for the extension of the Agreement in one-year increments, upon the agreement of the parties. This First Amendment exercises the option and extends the Agreement through December 31, 2010. -1- 4. All terms and conditions of the Agreement not changed by this First Amendment shall remain in full force and effect. IN WITNESS THEREOF, the parties hereto have executed this First Amendment on the date and year first written above. CITY OF NATIONAL CITY MEYERS NAVE PROFESSIONAL LAW CORPORATION By: By: Ron Morrison Mayor Approved as to form: George H. Eiser, III City Attorney -2- By: Name: Title: EETING DATE Aug 18, 2009 City of National City, California COUNCIL AGENDA STATEMENT AGENDA ITEM NO. 13 ITEM TITLE Warrant Register #3 for the period of 07/15/09 through 07/21/09 in the Amount of $1,158,876.18 PREPARED BY D. Gallegos -Finance DEPARTMENT EXPLANATION Finance Jeanette La 619-336-433 Per Government Section Code 37208, attached are the warrants issued for the period of 07/15/09 through 07/21/09. The Finance Department has implemented a policy to provide explanation of all warrants Above $50,000.00 Vendor Check# Amount Explanation Sandpipa 228217 776,253.00 Liability Insurance Sandpipa 228218 66,644.00 Property Insurance CEnvironmental Review Financial Statement Not applicable. N/A MIS Approval Approved By: Finance Director Account No. STAFF RECOMMENDATION Ratification of warrants in the amount of $1,158,876.18 BOARD /1COMMISSIQeNRF MENDATION waran ATTACHMENTS ( Listed Below) Resolution No. A-200 (Rev. 7/03) PAYEE TRISTAR RISK MANAGEMENT ACOSTA ADAMSON POLICE PRODUCTS AFLAC AIRGAS-WEST ALL FRESH ALLIANT INTERNATIONAL AMERICAN ROTARY BROOM CO., INC ARB/PERP ARJIS BENNETT BROTHERS, INC. BLACKIE'S TROPHIES AND AWARDS BOOT WORLD BROADWAY AUTO ELECTRIC CALIFORNIA BAKING CO. CCUG CHEVRON & TEXACO BUSINESS CARD CHILDREN'S HOSPITAL "AIMS MANAGEMENT ASSOCIATES UMS MANAGEMENT ASSOCIATES RPORATE EXPRESS/STAPLES COUNTY OF SAN DIEGO DATA TICKET INC DISCOUNT SPECIALTY CHEMICALS DIXIELINE LUMBER CO. FAMILY MARKET & LIQUOR FEDEX FIRE ETC GONZALES GROSSMAN PSYCHOLOGICAL ASSOC. HAMILTON MEATS & PROVISIONS HARRIS & ASSOCIATES INDEPENDENT FORENSIC SERVICES JC TOWING JOHN DEERE LANDSCAPES LIMFUECO MAINTEX, INC. MANPOWER OF SAN DIEGO MCGUIRE DISTRIBUTION METRO FIRE & SAFETY METRO WASTEWATER JPA MONTGOMERY KONE, INC. MORE DIRECT '^TIVATIONAL SYSTEMS INC 'IICIPAL MAINTENANCE EQUIP .. CHAMBER OF COMMERCE NATIONAL ASSOC OF COMPUTER NATIONAL CITY POA NATIONAL CITY POA WARRANT REGISTER # 3 7/21/2009 DESCRIPTION REFUND FOR WILLIAM REED LIABILITY CLAIM COSTS BALLISTIC VESTS AND COVERS AFLAC ACCOUNT BDM36 JULY 2009 BALLOON HELIUM FOOD/CONSUMABLES REGISTRATION: 14TH INT CONF SWEEPER REPAIRS REGISTRATION COSTS/ENGINES FOR ARJIS COSTS, JPA COSTS, ARJIS EMPLOYEE RECOGNITION CATALOGS MOP 67727 NAME TAGS - PD MOP #64096 SAFETY BOOTS (STREETS) ELECTRICAL PARTS BREAD PRODUCTS 2009 MEMBERSHIP DUES MOP #45699 FUEL CHILD SEXUAL ABUSE EXAMS LIABILITY CLAIM COSTS LIABILITY CLAIM COSTS MOP 45704 OFFICE SUPPLIES-PD ASSESSOR MAP PAGES PC PROCESSING, APPEALS - JUNE 09 PURELL HAND SANITIZER MOP #45707 CIRCULAR SAW, NAILER REFUND -BUSINESS LICENSE SPECIAL HANDLING CHRGS-MIS TFT LDH INTAKE VALVE CVSA RE -CERTIFICATION PRE-EMP PSYCHOLOGICAL EXAMS MEAT PRODUCTS JUNE 2009 SERVICES SART EXAMS MOP 68862 TOWING MOP #69277L 3 CU FT BAG SOIL CAPITAL ASSETS ACC SEMINAR 40X48 XH LINER 16M NAT 250/CS WEEK ENDING 7/5/09 SERVICES MILK PRODUCTS ANNUAL FIRE EXTINGUISHER NATIONAL CITY'S AGENCY SHARE 228197 REPAIRS & MAINTENANCE TO ELEVATORS 228198 ABSOLUTE LOJACK F/LAPTOPS STD 228199 REFUND OF BLDG PERMIT COST SENDER, FUEL LEVEL CITY ENHANCEMENT GRANT NACVSA RECERTIFICATION TRAINING DONALD SMITH'S RETIREMENT DONALD SMITH'S RETIREMENT 1/2 CHK NO DATE AMOUNT 228157 7/20/09 74,333-34 228158 7/21/09 70.00 228159 7/21/09 5,861.34 228160 7/21/09 1,543.64 228161 7/21/09 24.41 228162 7/21/09 1,316.83 228163 7/21/09 450.00 228164 7/21/09 1,10623 228165 7/21/09 1,240.00 228166 7/21/09 42,513.00 228167 7/21/09 3,800.00 228168 7/21/09 10.98 228169 7/21/09 222.86 228170 7/21/09 1,669.31 228171 7/21/09 134.40 228172 7/21/09 50.00 228173 7/21/09 121.35 228174 7/21/09 788.00 228175 7/21/09 333.20 228176 7/21/09 68.00 228177 7/21/09 114.78 228178 7/21/09 6.72 228179 7/21/09 2,146.15 228180 7/21/09 209.35 228181 7/21/09 1,862.87 228182 7/21/09 121.50 228183 7/21/09 112.46 228184 7/21/09 3,314.45 228185 7/21/09 442.72 228186 7/21/09 1,000.00 228187 7/21/09 973.87 228188 7/21/09 20,495.00 228189 7/21/09 900.00 228190 7/21/09 50.00 228191 7/21/09 387.59 228192 7/21/09 85.00 228193 7/21/09 479.54 228194 7/21/09 665.60 228195 7/21/09 296.30 228196 7/21/09 174.63 7/21/09 16,609.00 7/21/09 250.23 7/21/09 4,573.28 228200 7/21/09 178.00 228201 7/21/09 228.67 228202 7/21/09 7,500.00 228203 7/21/09 295.00 228204 7/21/09 15.00 228205 7/21/09 15.00 PAYEE PACIFIC SAFETY COUNCIL PADRE JANITORIAL SUPPLIES PADRE JANITORIAL SUPPLIES, INC PRO BUILD PRO -EDGE KNIFE PRUDENTIAL OVERALL SUPPLY QUESTYS SOLUTIONS RLM ASSOCIATES SAN DIEGO DAILY TRANSCRIPT SAN DIEGO NEIGHBORHOOD NEWS SAN DIEGO SPORTS MEDICINE SANDPIPA SANDPIPA SDG&E SHERRILL, INC. SMART & FINAL STAPLES ADVANTAGE STRATACOM SWEETWATER AUTHORITY SYSCO SAN DIEGO T'S & SIGNS THE SAN DIEGO UNION TRIBUNE TNG SECURITY, INC. TOOLUP PROF CONTRACTOR SUPPLIE TYLER TECHNOLOGIES, INC UNION TRIBUNE URBAN FUTURES USA FEDERAL CREDIT UNION VALLEY INDUSTRIAL SPECIALTIES W.S. DARLEY WADE & ASSOCIATES WATERLINE TECHNOLOGIES WEST GOVERNMENT SERVICES WHITAKER BROTHERS ZUMAR INDUSTRIES KEYSER MARSTON ASSOC KLEINFELDER, INC. WADE & ASSOCIATES SECTION 8 HAPS PAYMENTS Ty I1{1CUR.POHATED WARRANT REGISTER # 3 7/21/2009 DESCRIPTION HEALTH AND SAFETY SERVICES WAXED BAGS, BROWN, 250/CASE JANITORIAL SUPPLIES MOP #45707 CEMENT, ROPE, TAPE SHARPENING SVC MOP #45742 UNIFORMS - STREETS QUESTYS GOLD SUPPORT REFUND OF C&D FILING FEES STREET RESURF 09-9 STREET RESURF 09-9 (40) EXAMS FOR FIRE DEPARTMENT EXCESS LIABILITY INSURANCE PROPERTY INSURANCE FACILITIES DIVISION GAS & ELECTRIC TREE GEAR MOP 45756 STORE SUPPLY - FD MOP 45704 OFFICE SUPPLIES - PD MOP 63845 BUSINESS CARDS FACILITIES DIVISION FOOD/CONSUMABLES NAVY SHIRT PRINT 3 COLOR FRONT LEGAL NOTICES ADVERTISING MOP #45754 LOCKSMITH SVC, DUP KEYS WEATHERGUARD 8870-3 FINANCIALS PROGRAMMING RENEWAL - PLANNING DEPT CDD SERVICES TO THE CITY REFUND OF BANNER DEPOSIT MOP #46453 CITY-WIDE BACKFLOW #AM063. BOWTIE COIL KEEPER PRINCIPAL PM -SOCCER FIELD PROJECT MUNICIPAL POOL CHEMICALS DATABASE -UNLIMITED ACCESS-JUNO9 REPAIR OF SHREDDING MACHINE STREET SWEEPING CONSULTING FOR GATEWAY SHOPPING CE TO PROVIDE CONSTRUCTION MATERIAL BAY MARINA WIDENINING Start Date End Date 7/15/2009 7/21/2009 2/2 CHK NO DATE AMOUNT 228206 7/21/09 9.79 228207 7/21/09 149.66 228208 7/21/09 256.38 228209 7/21/09 398.29 228210 7/21/09 45.00 228211 7/21/09 78.10 228212 7/21/09 12,667.20 228213 7/21/09 1,868.00 228214 7/21/09 663.40 228215 7/21/09 891.75 228216 7/21/09 14,670.00 228217 7/21/09 776,253.00 228218 7/21/09 66,644.00 228219 7/21/09 4,587.35 228220 7/21/09 357.53 228221 7/21/09 305.91 228222 7/21/09 844.24 228223 7/21/09 63.66 228225 7/21/09 27,157.0' 228226 7/21/09 1,679.5 228227 7/21/09 591.5b 228228 7/21/09 1,651.20 228229 7/21/09 337.66 228230 7/21/09 71.78 228231 7/21/09 1,500.00 228232 7/21/09 114.08 228233 7/21/09 3,900.00 228234 7/21/09 1,975.00 228235 7/21/09 160.69 228236 7/21/09 680.15 228237 7/21/09 1,612.50 228238 7/21/09 1,962.26 228239 7/21/09 200.00 228240 7/21/09 234.00 228241 7/21/09 1,471.61 228242 7/21/09 11,489.38 228243 7/21/09 3,691.20 228244 7/21/09 5,752.00 GRAND TOTAL A/P Total 1,146,144.52 12,731.66 $ 1.158,876.1: trircoRpcnitato Warrant Register #3 7/21/2009 001 GENERAL FUND 105 PARKS MAINTENANCE FUND 115 PARK & REC CAPITAL OUTLAY FUND 120 PLAN CHECKING REVOLVING FUND 125 SEWER SERVICE FUND 166 NUTRITION 259 LIBRARY BONDS DEBT SERVICE FUND 307 PROPOSITION A" FUND 345 TRAFFIC CONGESTION RELIEF 502 SECTION 8 FUND 511 TAX INCREMENT FUND 626 FACILITIES MAINT FUND 627 LIABILITY INS. FUND 628 GENERAL SERVICES FUND 629 INFORMATION SYSTEMS MAINTENANC 630 OFFICE EQUIPMENT DEPRECIATION 632 GENERAL ACCOUNTING SERVICES 643 MOTOR VEHICLE SVC FUND 731 CONSTRUCTION AND DEMOLITION DEBRIS 121, 395.47 1,550.08 1,612.50 106.80 18,128.21 4,726.71 1,950.00 1,555.15 665.60 12, 731.66 20,932.58 32,161.81 917, 711.33 31.83 12,667.20 4,236.69 1,719.00 3,125.56 1,868.00 1,158,876.18 SETING DATiug 18, 2009 City of National City, California COUNCIL AGENDA STATEMENT AGENDA ITEM NO. 14 / ITEM TITLE Warrant Register #4 for the period of 07/22/09 through 07/28/09 in the Amount of $2,319,078.31 PREPARED BY D. Gallegos -Finance DEPARTMENT EXPLANATION Finance Jeanette Lad 619-336-4331 Per Government Section Code 37208, attached are the warrants issued for the period of 07/29/09 through 08/04/09. EXT. The Finance Department has implemented a policy to provide explanation of all warrants Above $50,000.00 Vendor Heartland Comm. SD County Office of Education Southwestern Comm. College Bank of NY Mellon Check# 228277 228317 228324 Wire Amount Explanation 80,898.00 Member Assessment 312,168.00 Pass Through Payment 284,407.00 Pass Through Payment 380,473.75 HUD 108 Loan CEnvironmental Review N/A MIS Approval Financial Statement Not applicable. Approved B ;no ' e Director Account No. STAFF RECOMMENDATION Ratification of warrants in the amount of $2,319,078.31 BOARD / COMMISSION RECOMMENDATION 4111 ATTACHMENTS ( Listed Below) Resolution No. 1. Warrant Register#4 A-200 (Rev. 7/03) PAYEE ALL FRESH AMERICAN ROTARY BROOM CO., INC ASBURY ENVIRONMENTAL SERVICES B & S GRAPHICS, INC. BANK OF AMERICA BANK OF AMERICA BROADWAY AUTO ELECTRIC CALIFORNIA BAKING CO. CALIFORNIA ELECTRIC SUPPLY CALIFORNIA POLICE CHIEFS' CISSEL CITY OF NATIONAL CITY CITY-WIDE ELECTRONICS CLEARS COMMCINEMA INC. COPY POST PRINTING COUNTY OF SAN DIEGO DALEY & HEFT LLP DALEY & HEFT LLP DAPPER TIRE COMPANY DELL MARKETING CORP DREW FORD FERGUSON ENTERPRISES, INC FIBERPLEX INCORPORATED FLEET SERVICES, INC FLEETPRIDE G & A AUTO AIR CONDITIONING G & A AUTOMOTIVE, INC. GARY BELL DESIGN ASSOCIATION GRAINGER HAMILTON MEATS & PROVISIONS HD SUPPLY HEARTLAND COMM. FAC. AUTHORITY HONEYWELL INC. HUB CONSTRUCTION SPECIALTIES HUNTER'S NURSERY INC. HYDRO-SCAPE PRODUCTS INC. INSTITUTE FOR PUBLIC STRATEGIE JJJ ENTERPRISE JOHN DEERE LANDSCAPES JUDD ELECTRIC KITAGAWA HOME & OFFICE KIWANIS CLUB OF NATIONAL CITY LOPEZ MAINTEX, INC. MARTIN & CHAPMAN MASON'S SAW & LAWNMOWER SVC • INCORPORATE° WARRANT REGISTER # 4 7/28/2009 DESCRIPTION FOOD/CONSUMABLES SWEEPER REPAIRS PICKUP USED OIL SERVICE CHARGE NATIONAL CITY LOGO STICKERS CREDIT CARD EXPENSE - PD CREDIT CARD EXP - CM ELECTRICAL PARTS BREAD PRODUCTS ELECTRICAL MATERIALS MEMBERSHIP DUES SPEAKER CABLE AB1290 TAX SHARING (FINAL DIST) FY09 ALARM MONITORING ANNUAL CLEARS SEMINAR - PD 07/10/09 OUTDOOR MOVIE SCREENING BUSINESS CARDS - MAYOR'S OFFICE AB1290 TAX SHARING (FINAL DIST) FY09 LIABILITY CLAIM COSTS LIABILITY CLAIM COSTS TIRES FOR CITY FLEET COMPUTER EQUIPMENT - MIS PARTS & LABOR FOR CITY FLEET PLUMBING MATERIAL HARDWARE FOR PBX NETWORK VALVE FLIPPER FLIPPER VALVE PARTS, REFRIGERANT, OIL W/DYE AC REPAIRS, UNIT #433 DESIGN/LAYOUT OF NC PROCLAMATION TOOLS & SUPPLIES MEAT PRODUCTS PLUMBING MATERIAL PROJECTED MEMBER ASSESSMENT CITY-WIDE MECHANICAL H.V.A.C. ADV PURCHASE 24'. SONOTUBE SHRUBS PARTS & SUPPLIES CONSULTANT/COLLABORATOR-JUNO9 CITY-WIDE ALARM MONITORING 16-6-8 TURF SUPREME CITY-WIDE ELECTRICAL REPAIRS SIGNATURE STAMP KIWANIS CLUB DUES / MEALS TRANSLATION SERVICES - JUL 21, 09 SUPPLIES CITY CLERKS DIRECTORY TOOLS & SUPPLIES 1/3 CHK NO DATE AMOUNT 228245 7/28/09 1,385.16 228246 7/28/09 230.97 228247 7/28/09 40.00 228248 7/28/09 156.31 228249 7/28/09 839.55 228250 7/28/09 56.74 228251 7/28/09 413.25 228252 7/28/09 216.00 228253 7/28/09 169.65 228254 7/28/09 1,600.00 228255 7/28/09 27.36 228256 7/28/09 847.00 228257 7/28/09 55.50 228258 7/28/09 400.00 228259 7/28/09 2,800.00 228260 7/28/09 132.15 228261 7/28/09 986.00 228262 7/28/09 2,461.98 228263 7/28/09 1,443.01 228264 7/28/09 3,027.14 228265 7/28/09 32,960.03 228266 7/28/09 263.87 228267 7/28/09 452.94 228268 7/28/09 2,078.33 228269 7/28/09 37.71 228270 7/28/09 73.86 228271 7/28/09 588.04 228272 7/28/09 915.21 228273 7/28/09 960.00 228274 7/28/09 775.85 228275 7/28/09 633.89 228276 7/28/09 194.14 228277 7/28/09 80,898.00 228278 7/28/09 30,434.00 228279 7/28/09 58.72 228280 7/28/09 305.11 228281 7/28/09 387.28 228282 7/28/09 1,780.00 228283 7/28/09 900.00 228284 7/28/09 493.45 228285 7/28/09 150.00 228286 7/28/09 16.68 228287 7/28/09 84.00 228288 7/28/09 140.00 228289 7/28/09 883.01 228290 7/28/09 21.27 228291 7/28/09 282.96 PAYEE MASTER SHINE WINDOW WASHING MCGUIRE DISTRIBUTION METRO FIRE & SAFETY METROPOLITAN WATER DISTRICT MISSION UNIFORM SERVICE NATIONAL CITY AUTO TRIM NATIONAL CITY CAR WASH NATIONAL CITY TROPHY NATIONAL ELEM SCHOOL DISTRICT NIXON EGLI EQUIPMENT CO. ONE SOURCE DISTRIBUTORS ORANGE COUNTY SHERIFF'S DEPT PACIFIC AUTO REPAIR PACIFIC AUTO SUPPLY PERRY FORD POWERSTRIDE BATTERY CO INC PRO BUILD PRUDENTIAL OVERALL SUPPLY RELIABLE TIRE CO. RON BAKER CHEVROLET RON TURLEY ASSOCIATES, INC SAFETY-KLEEN SYSTEMS, INC. SAM'S ALIGNMENT SANDAG SD ASSOCIATION OF PUBLIC SD COUNTY OFFICE OF EDUCATION SD COUNTY OFFICE OF EDUCATION SD COUNTY WATER AUTHORITY SECRETARY OF STATE SECRETARY OF STATE SECRETARY OF STATE SHEPHARD SOUTHWESTERN COMMUNITY COLLEGE SOUTHWESTERN COMMUNITY COLLEGE STAPLES ADVANTAGE STRATACOM SUN BADGE COMPANY INC. SWEETWATER UNION HS DISTRICT SYSCO SAN DIEGO TNG SECURITY, INC. TURNER'S PORTABLE WELDING U S BANK CORPORATE PAYMT SYS WATERLINE TECHNOLOGIES 'DILLY'S ELECTRONIC SUPPLY VOOD & WOOD WPD ZAPATA INCORPORATI&D WARRANT REGISTER # 4 7/28/2009 DESCRIPTION WINDOW CLEANING SERVICES MILK PRODUCTS EXTINGUISHER SERVICE AB1290 TAX SHARING (FINAL DIST) FY09 LAUNDRY SERVICES RECOVER SEAT AUTO DETAIL NAMEPLATES AB1290 TAX SHARING (FINAL DIST) FY09 PARTS TO REPAIR UNIT #373 SMALL TOOLS & SUPPLIES TUIT-FIELD TRAINING OFFICER UPDATE PARTS, LABOR & SMOG CERTIFICATION AUTOMOBILE PARTS FOR CITY FLEET PARTS & LABOR FOR CITY FLEET BATTERIES ELECTRICAL MATERIAL UNIFORMS - WASTEWATER RECYCLE TIRES KNOB FOR HEATER FLEET MGMT ANNUAL MAINTENANCE PICK UP/DISPOSAL FEE WHEEL ALIGNMENT ASSESSMENTS -CRIMINAL JUSTICE REG CTO UPDATE ON THE JOB TRAINING PASS THROUGH PAYMENT FY09 AB1290 TAX SHARING (FINAL DIST) FY09 AB1290 TAX SHARING (FINAL DIST) FY09 RECORDING COSTS RECORDING COSTS RECORDING COSTS ADV FIELD TRAINING OFFICER UPDATE PASS THROUGH PAYMENT FY 09 AB1290 TAX SHARING (FINAL DIST) FY09 OFFICE SUPPLIES - MIS ENVELOPES - CS BADGE REPAIRS, RETAINER AB1290 TAX SHARING (FINAL DEST) FY09 FOOD/CONSUMABLES SERVICE CHARGE MATERIAL, 3 LBS GRATING, 1/4" PLATE CREDIT CARD EXP - FIRE MUNICIPAL POOL CHEMICALS ELECTRIC SUPPLIES - MIS LIABILITY CLAIM COSTS WIPER BLADES REIMB FOR VARIOUS MEETINGS 2/3 CHK NO DATE AMOUNT 228292 7/28/09 1,517.00 228293 7/28/09 204.85 228294 7/28/09 455.96 228295 7/28/09 19.00 228296 7/28/09 61.66 228297 7/28/09 313.89 228298 7/28/09 130.00 228299 7/28/09 58.71 228300 7/28/09 1,146.00 228301 7/28/09 2,464.96 228302 7/28/09 279.23 228303 7/28/09 50.00 228304 7/28/09 1,472.60 228305 7/28/09 332.66 228306 7/28/09 1,998.83 228307 7/28/09 369.97 228308 7/28/09 638.16 228309 7/28/09 666_73 228310 7/28/09 264.00 228311 7/28/09 97.53 228312 7/28/09 1,650.00 228313 7/28/09 25.00 228314 7/28/09 604.53 228315 7/28/09 2,809.00 228316 7/28/09 225.00 228317 7/28/09 312,168.00 228318 7/28/09 84.00 228319 7/28/09 17.00 228320 7/28/09 10.00 228321 7/28/09 10.00 228322 7/28/09 10.00 228323 7/28/09 422.28 228324 7/28/09 284,407.00 228325 7/28/09 189.00 228326 7/28/09 319.61 228327 7/28/09 113.10 228328 7/28/09 193.38 228329 7/28/09 701.00 228330 7/28/09 2,932.11 228331 7/28/09 120.44 228332 7/28/09 1,586.59 228333 7/28/09 24.76 228334 7/28/09 2,570.11 228335 7/28/09 721.24 228336 7/28/09 21,879.41 228337 7/28/09 51.87 228338 7/28/09 240.96 PAYEE KLEINFELDER, INC. SAN DIEGO COUNTY RECORDER STAPLES ADVANTAGE WADE & ASSOCIATES THE BANK OF NEW PORK MELLON PAYROLL Pay period Start Date 15 6/30/2009 Dvcoi cinATEP WARRANT REGISTER # 4 7/28/2009 DESCRIPTION HIGHLAND AVE COMPACTION TEST COSTS FOR RECONVEYANCE OF LOANS OFFICE SUPPLIES - S8 PROJECT MANAGER - BAY MARINA HUD 108 LOAN - NC FIRE STATION End Date Check Date 7/13/2009 7/22/2009 3/3 CHK NO DATE AMOUNT 228339 7/28/09 14,634.50 228340 7/28/09 69.00 228341 7/28/09 76.20 228342 7/28/09 5,895.00 A/P Total 841,357.95 7/27/09 380,473.75 1,097,246.61 GRAND TOTAL $ 2,319,078.31 INCORPORATED Warrant Register # 4 7/28/2009 001 GENERAL FUND 104 LIBRARY FUND 105 PARKS MAINTENANCE FUND 109 GAS TAXES FUND 111 P.O.S.T. FUND 125 SEWER SERVICE FUND 130 EMT-D REVOLVING FUND 154 STATE PUBLIC LIBRARY FUND 158 SWIMMING POOL REVOLVING FUND 159 GENERAL PLAN UPDATE RESERVE 166 NUTRITION 172 TRASH RATE STABILIZATION FUND 173 NATIONAL SCHOOL DIST CONTRACT 174 SWEETWATER SCHOOL DIST CONTRAC 191 STOP PROJECT 211 SECURITY AND ALARM REGULATION FUND 212 PERSONNEL COMPENSATION FUND 230 ABANDONED VEHICLE ABATEMENT GRANT 246 WINGS GRANT 261 CDC DEBT SERVICE FUND 290 POLICE DEPT GRANTS 294 HUD HEALTHY HOMES GRANT 301 GRANT-C.D.B.G. 307 PROPOSITION A" FUND 320 LIBRARY GRANTS 502 SECTION 8 FUND 505 HOME FUND 506 HOME LOAN PROGRAM FUND 511 TAX INCREMENT FUND 522 LOW/MODERATE HOUSING FUND 626 FACILITIES MAINT FUND 627 LIABILITY INS. FUND 628 GENERAL SERVICES FUND 629 INFORMATION SYSTEMS MAINTENANC 630 OFFICE EQUIPMENT DEPRECIATION 631 TELECOMMUNICATIONS REVOLVING 632 GENERAL ACCOUNTING SERVICES 643 MOTOR VEHICLE SVC FUND 843,473.40 27,789.64 29, 601.79 1,518.91 422.28 17,001.24 10,834.62 978.58 2,255.94 1,207.95 17,126.07 2,000.86 937.17 5,972.64 1,838.61 1,148.23 20,855.62 369.43 49,808.61 600, 564.00 4,132.19 1,199.14 1,677.79 5,351.86 6,145.71 20,852.87 1,027.11 380, 519.75 82,465.81 1,914.30 60,532.47 29,490.33 2,921.06 2,923.40 37,409.60 1,458.87 15, 778.48 27,571.98 2,319,078.31 City of National City, California COUNCIL AGENDA STATEMENT EETING DATE August 18, 2009 AGENDA ITEM NO. 15 ITEM TITLE Resolution Of The City Council of The City of National City Authorizing the Investment of $1 million In the Certificate of Deposit Account Registry Services (CDARS) Program with Neighborhood National Bank PREPARED BY Jeanette Ladrido Finance Director EXPLANATION DEPARTMENT Finance x 4331 On August 21, 2007, City Council approved an amendment to the City's Investment policy which made Certificate of Deposit Account Registry Services (CDARS) an eligible investment category. CDARS became statutorily authorized by the enactment of the California Government Code Section 53601.8, effective January 1, 2007. CDARS is provides full FDIC insurance on deposits of up to $30 million in authorized financial institutions. By providing access to full FDIC insurance, CDARS can help the City comply with investment policy mandates. Neighborhood National Bank (NNB) has confirmed that they will match the LAIF interest rate at the time of the investment of funds. On September 4, 2007, City Council approved a $2 million investment in the CDARS program with NNB at a competitive rate of return of 5.13%. with an 18 month maturity. The City Council approved an additional $1 million investment in July 2008 at a competitive rate of return of 3.15% with a 12 month maturity. The original investment of $2 million matured in March 2009 and was re -invested at a rate of 2.75%, which was a rate comparable to LAIF. With the current market conditions, LAIF's interest rates have dropped significantly. The $1 million investment matured on July 23, 2009 and NNB has offered to invest at 1.51%. Attachment 1 provides more information on the lending impacted by the CDARS Program. Environmental Review N/A Financial Statement Approved By: J nette Ladrido, Finance Director NNB has offered a rate of return of 1.51 % to reinvest $1 million. The yield for LAIF in the month of June was 1.377%. Account No. STAFF RECOMMENDATION Re -invest $1 million with NNB for the CDARS Program. BOARD / COMMISSION RECOMMENDATION ATTACHMENTS ( Listed Below) Resolution No. 1. Resolution 2. Attachment 1 A-200 (9/80) RESOLUTION NO. 2009 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INVESTMENT OF $1 MILLION IN THE CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SERVICES (CDARS) PROGRAM WITH NEIGHBORHOOD NATIONAL BANK WHEREAS, on August 21, 2007, the City Council approved an amendment to the City's Investment policy which made Certificate of Deposit Account Registry Services (CDARS) an eligible investment category; and WHEREAS, CDARS became statutorily authorized by the enactment of the California Government Code Section 53601.8, effective January 1, 2007; and WHEREAS, Neighborhood National Bank (NNB) has confirmed that they will match the Local Agency Investment Fund interest rate at the time of the investment of funds; and WHEREAS, on September 4, 2007, the City Council approved a $2 Million investment in the CDARS program with Neighborhood National Bank at a competitive rate of return of 5.13% with an 18 month maturity; and WHEREAS, on June 17, 2008, the City Council approved an additional $1 Million investment dated July 24, 2008 at a competitive rate of return of 3.15% with a 12 month maturity; and WHEREAS, the original investment of $2 Million matured in March 11, 2009 and was re- invested at a rate of 2.75%; and WHEREAS, on July 23, 2009, the $ 1Million investment matured and was re -deposited in the ty of National City's Local Agency Investment Fund; and WHEREAS, NNB has made 10 loans from August 2008 through August 2009 totaling $4,966,650; and WHEREAS, NNB has now offered to re -invest $1 Million at a rate of return of 1.51% with a 12 month maturity. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes an investment in the CDARS program with Neighborhood National Bank of $1 Million at a rate of return of 1.51% with a 12 month maturity PASSED and ADOPTED this 18th day of August, 2009. Ron Morrison, Mayor ATTEST: Michael R. Della, City Clerk APPROVED AS TO FORM: gorge H. Eiser, 11I City Attomey ATTACHMENT 1 Lending Impacted by CDARS Program From 06/01/03 to 08/03/09 Since National City's CDARS Deposit Since the opening of National City's $2 million CDARS account on September 13, 2007 with Neighborhood National Bank, the Bank has been able to grant 12 business and commercial real estate loans to 8 entities for a total of $6,010,150. In other words, the Bank has leveraged National City's deposit over 200% ($4,010,150 or 200.5%). The business loans totaled $2,145,900 to four companies: one automobile parts/accessory stores two supermarkets, and a machine shop/engraving. The commercial real estate loans totaled $3,864,250 for three retail projects covering 7 retail units, 1 warehouse, and three loans to purchase or refinance 24 housing units. Even with the current local economic downturn, the Bank has made 10 loans since August, 2008 and to August 3, 2009, totaling $4,966.650 or 148.3% increase over National City's CDARS deposit. The total loans made since the CDARS deposit was received at the Bank have been made in 5 of the 15 census tracts comprising the City. The amount of lending in each tract follows: Census Tract Dollar Amount of Loans Made 114.00 $1,686,000 115.00 $12,900 116.02 $435,000 117.00 $3,162,500 120.01 $388,000 121.02 $325,750 Since CDARS Program Began at the Bank Since the CDARS program began at the Bank in June 2003 to August 3, 2009, the Bank has granted 35 business, commercial real estate. construction, and consumer loans to 24 entities in National City for a total of $15,127,350. Of these loans, 21 business loans totaling $3,672,950 were made to: 10 small businesses (14 loans) and to 3 larger sized businesses (7 loans). The 14 loans to small businesses, defined as having annual revenues equal to $1 million or less, totaled $1,224,400. Using an average of 11 employees per business, based on SBA loan applications, an estimated 264 jobs were created/retained by these 13 businesses. Two construction loans created 30 dwelling units. Commercial Real Estate loans covered 1 office building, 1 industrial building, 1 warehouse, 7 retail units, 20 apartment units, 4 single family units, and 1 church. ATTACHMENT 1 Further, the 35 loans are fairly disbursed throughout National City. The loans are made in 12 out of the 15 census tracts comprising the city. The amount of lending in each tract follows: Census Tract Dollar Amount of Loans Made 114.00 $1,972,000 115.00 $1,265,900 116.01 $25,000 116.02 $671,450 117.00 $8,389,000 118.01 $367,500 118.02 $50,000 120.01 $703,550 120.03 $232,000 121.01 $372,700 121.02 $325,750 122.00 $752,500 Further in 2008, the National City Chamber of Commerce honored Neighborhood National Bank as the Business of the Year in National City. City of National City, California COUNCIL AGENDA STATEMENT METING DATE August 18, 2009 AGENDA ITEM NO. 16 ITEM TITLE RESOLUTION APPROVING AND AUTHORIZING ISSUANCE OF A WRITTEN REPORT PERTAINING TO A MORATORIUM ORDINANCE PROHIBITING ESTABLISHMENTS DISPENSING MARIJUANA FOR MEDICAL PURPOSES PREPARED BY George H. Eiser, III 011 DEPARTMENT City Attorney (Ext. 4221) EXPLANATION At the July 21, 2009 City Council meeting, the Council enacted Ordinance No. 2009-2321 an urgency interim ordinance imposing a 45-day moratorium prohibiting establishments dispensing marijuana for medical purposes. Section 2 of Ordinance No. 2009-2321 directed the Planning Commissiion to commence studies and procedures necessary for the adoption of measures prohibiting or regulating establishments dispensing marijuana for medical purposes. An item pertaining to the moratorium ordinance prohibiting medical marijuana dispensaries has been placed on the August 17 Planning Commission agenda. The Staff Report for this item is attached. An oral report on the Commission's action will be presented at the August 18 City Council meeting. An item will be placed on the September 1 agenda for the City Council to consider extending the moratorium for an additional 10 months and 15 days. Prior to doing so, the Council must issue a written report describing the measures taken to alleviate the condition that led to the adoption of the moratorium ordinance. In order to meet this requirement, the attached report is submitted for Council approval and issuance. Environmental Review 2L N/A Financial Statement N/A Approved By: Finance Director Account No. STAFF RECOMMENDATION Approve and authorize issuance of report. BOARD 1 COMMISSION RECOMMENDATION This topic has been placed on the August 17 Planning Commission agenda. ATTACHMENTS ( Listed Below) Resolution No. 1. Report (Government Code Section 65858(d)) 2. Staff Report for August 17 Planning Commission meeting 3. Ordinance No. 2009-2321 A-200 (9/99) RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING AND AUTHORIZING ISSUANCE OF A WRITTEN REPORT PERTAINING TO A MORATORIUM ORDINANCE PROHIBITING ESTABLISHMENTS DISPENSING MARIJUANA FOR MEDICAL PURPOSES IN NATIONAL CITY WHEREAS, at the City Council meeting of July 21, 2009, the Council enacted Ordinance No. 2009-2321, "An Interim Ordinance of the City Council of the City of National City Adopted Pursuant to Govemment Code Section 65858 as an Urgency Measure to Take Effect Immediately, Enacting a Moratorium Prohibiting Establishments Dispensing Marijuana for Medical Purposes in National City"; and WHEREAS, Section 2 of Ordinance No. 2009-2321 directed the Planning Commission to commence studies and procedures necessary for the adoption of measures prohibiting or regulating establishments dispensing marijuana for medical purposes; and WHEREAS, the Planning Commission considered the matter of their meeting of August 17, 2009, at which time the Commission directed staff to complete further investigation to commence studies and procedures necessary for the adoption of measures prohibiting or regulating establishments dispensing marijuana for medical purposes, and to prepare a report making recommendations regarding an amendment to the Land Use Code relating to such establishments; and WHEREAS, the moratorium enacted pursuant to Ordinance No. 2009- 2321 will expire on September 4, 2009, subject to extension by action of the City Council; and WHEREAS, Section 65858(d) of the Government Code provides that 10 days prior to the expiration of the interim ordinance or any extension, the legislative body shall issue a written report describing the measures taken to alleviate the condition which led to the adoption of the ordinance; and WHEREAS, a Report satisfying the requirements of Government Code Section 65858(d) is attached hereto as Exhibit "A" and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby finds and determines that the Report attached hereto as Exhibit "A" satisfies the requirements of Government Code Section 65858(d), and hereby approves and authorizes issuance of said Report. Resolution No. 2009 — August 18, 2009 Page 2 PASSED and ADOPTED this 18th day of August, 2009. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney Report (Government Code Section 65858 (d)) Since the City Council's adoption of the urgency moratorium ordinance on July 21, 2009 (Ordinance No. 2009-2321), the City has taken the following actions to alleviate the condition which led to the adoption of the ordinance: Review of Current Land Use Code; Business Licenses Applications: As with any business operating within the City of National City, a medical marijuana dispensing facility must obtain a business license. At the time of application, the business license application would be forwarded to the Planning Division to determine if the use is an allowed use within the zone in which it is proposed. The City's Land Use Code, Chapter 18, does not list marijuana dispensing facilities as a lawful, permitted use. There are, however, other land uses which if broadly construed could possibly encompass a medical marijuana dispensing facility. The Council, in enacting Ordinance No. 2009-2321, indicated that this use as well as additional associated uses should be further investigated. The moratorium provides the City an opportunity to undertake such investigation and determine how it wishes to proceed, while barring the specific use in the interim. 2. Inventoried Existing Medical Marijuana Dispensaries: The City's Finance Department researched business license records and determined that there currently are no medical marijuana dispensaries within the City. 3. Review of Inquiries/Pending Permit Applications: Although the Planning Division has received inquiries regarding establishment of medical marijuana facilities in the city, no permits or formal license applications have been submitted. 4. Planning Commission Review: Ordinance 2009-2321 directs the Planning Commission to commence studies and procedures necessary to consider regulations prohibiting or regulating medical marijuana dispensaries. This subject has been placed on the August 17, 2009 Planning Commission agenda. It is anticipated that after the Commission has considered the matter, they will direct staff to thoroughly explore the issues and upon conclusion of these studies, submit a report with recommendations to the Commission. An oral report on the Planning Commission's action will be presented at the August 18 City Council meeting. Summary Upon completion of the study and recommendations by the Commission, an amendment would be brought to the Planning Commission and City Council for consideration and adoption. The City may choose to authorize or prohibit medical marijuana collectives through the enforcement of its Zoning Code and business license process. In order to allow a marijuana dispensing facility, the Land Use Code may be amended to recognize the use and any auxiliary type use, determine if it is an appropriate use for the City, and determine the appropriate zone and possible distance requirements from schools and parks. To prohibit marijuana dispensing facilities as a use, amendments to the Land Use Code would likely be recommended to make the prohibition abundantly clear. Title: iNcbR7POItxrw, _. CITY OF NATIONAL CITY - DEVELOPMENT SERVICES DEPARTMENT 1243 NATIONAL CITY BLVD., NATIONAL CITY, CA 91950 Item no. 4 August 17, 2009 PLANNING COMMISSION STAFF REPORT REPORT REGARDING INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTED PURSUANT TO GOVERNMENT CODE SECTION 65868 AS AN URGENCY MEASURE ENACTING A MORATORIUM PROHIBITING ESTABLISHMENTS DISPENSING MARIJUANA FOR MEDICAL PURPOSES IN NATIONAL CITY. Case File No.: 2009-14 A Staff report by: Peggy Chapin, Principal Planner Applicant: City Initiated Location: Citywide Environmental review: Exempt pursuant to California Environmental Quality Act CEQA) Section 16306, Class 6, Information Collection Background The City Council adopted Ordinance 2009-2321 on July 21, 2009 enacting a moratorium prohibiting establishments dispensing marijuana for medical purpose in National City. Prior to preparing an amendment to the land use code, the Council recommended that the Planning Commission commence studies and procedures necessary for the adoption of measures prohibiting or regulating establishments dispensing marijuana for medical purposes. The purpose of this report is to request the Commission direct staff to explore the issues and commence studies and procedures necessary for the adoption of measures prohibiting or regulating establishments dispensing marijuana for medical purposes, and provide a report to the Commission of the results of the study with recommendations for consideration. Summary of Applicable Law Federal Controlled Substance Act: Under the Controlled Substances Act, enacted by Congress in 1970, marijuana is classified as a Schedule One controlled substance. This federal law makes it illegal to manufacture, distribute, dispense, or possess any controlled substance, including marijuana, in the United States. California Proposition 215: In 1996, the voters of the State of California approved Proposition 215, which was codified as Health and Safety Code Section 11362.5, et seq., and entitled "The Compassionate Use Act of 1996." The intent of Prop 215 was to ensure seriously ill individuals have the right to obtain and use marijuana for medical purposes when deemed appropriate and recommended by a physician. This voter initiative exempts patients and their primary caregivers from prosecution under state laws that otherwise prohibit the cultivation or possession of marijuana. The Act states the following: • To ensure that seriously ill Californians have the right to obtain and use marijuana for medical purposes where that medical use ids deemed appropriate and has been recommended by a physician who has determined that the person's health would benefit from the use of marijuana in treatment of cancer, anorexia, AIDS, chronic pain, spasticity, glaucoma, arthritis, migraine, or any other illness for which marijuana provides relief. • To ensure that patients and their primary caregivers who obtain and use marijuana for medical purposes upon the recommendation for a physician are not subject to criminal prosecution or sanction. • To encourage the federal and state governments to implement a plan to provide for the safe and affordable distribution of marijuana to all patients in medical need for marijuana. California Senate Bill 420, Medical Marijuana Program (MMP): In 2003, the state legislature passed SB 420, which established the MMP (Health and Safety Code §11362.7 et seq). This legislation requires the California Department of Public Health establish and maintain a voluntary system for qualified patients and their caregivers to obtain identification cards. These cards insulate them from arrest for violations of state law relating to possession of marijuana. In addition to the ID card program, the MMP also defines certain terms, sets possession guidelines for cardholders, and recognizes a qualified right to collective and cooperative cultivation of medical marijuana. Conflict between State and Federal Law: The incongruity between federal and California state law has understandably caused confusion. In 2008 Guidelines for the Security and Non - diversion of Marijuana Grown for Medical Use (attached for reference), the State Attorney General provided the following information on the subject: ...no legal conflict exists merely because state law and federal law treat marijuana differently. Indeed, California's medical marijuana laws have been challenged unsuccessfully in court on the ground that they are preempted by the Controlled Substance Act (CSA). Congress has provided that states are free to regulate in the area of controlled substances, including marijuana, provided that state law does not positively conflict with the CSA. Neither Proposition 215, nor the MMP, conflict with the CSA because, in adopting these laws, California did not "legalize" medical marijuana, but instead exercised the state's reserved powers to not punish certain marijuana offenses under state law when a physician has recommended its use to treat a serious medical condition. The Attorney General provides specific guidelines regarding the manner in which marijuana may be disbursed to patients, "Collectives and Cooperatives." In summary, the Attorney General explains there is no legal basis to operate a for -profit retail storefront for the sale of marijuana. Instead, what the law supports is a group of patients and care -givers who collectively or cooperatively cultivate doctor -recommended marijuana. In setting forth the guidelines, the Attorney General details the manner in which collectives and cooperatives (as opposed to dispensaries or for -profit business entities can lawfully operate. The guidelines suggest that adherence to the following parameters would be consistent with state law: 1) non-profit operation; 2) business licenses, sales taxes, and seller's permits; 3) membership application and verification; 4) acquire, possess, and distribute marijuana only amongst constituent members of collective or cooperative; 5) prohibition of sales to non- members; 6) permissible reimbursements and allocations; 7) possession and cultivation guidelines; and 8) security. Current National City Land Use Code for Business Licenses As with any business operating within the City of National City, a medical marijuana dispensing facility must obtain a business license. At the time of application, the business license application would be forwarded to the Planning Division to determine if the use is an allowed use within the zone in which it is proposed. The City's Land Use Code, Chapter 18, does not list marijuana dispensing facilities as a lawful, permitted use. There are, however, other land uses which if broadly construed could possibly encompass a medical marijuana dispensing facility. The Council, by their action, indicated that the use as well as additional associated uses should be further investigated. The moratorium provides the City an opportunity to undertake such investigation and determine how it wishes to proceed, while barring the specific use in the interim. Upon completion of the study and recommendations by the Commission, an amendment would be brought to the Planning Commission and City Council for consideration and adoption. The City can choose to authorize or prohibit medical marijuana collectives through the enforcement of its Zoning Code and business license process. In order to allow a marijuana dispensing facility, the Land Use Code may be amended to recognize the use and any auxiliary type use, determine if it is an appropriate use for the city, and determine the appropriate zone and possible distance requirements from schools and parks. The City may choose to prohibit marijuana collectives. Current California law would still permit residents who are qualified patients or caregivers to grow and/or use medical marijuana in conformance with state law. Additionally, to bar marijuana dispensing facilities as a use, there may be amendments to the Land Use Code to make the prohibition abundantly clear. Regulations in Other California Cities: Recently, the cities of Oceanside, Escondido, Chula Vista, and the county of San Diego have enacted emergency ordinances (moratoriums) in order to further evaluate the appropriateness of the use and potential land use designations. Santee has an urgency ordinance scheduled for Council consideration. Other cities within the county, such as La Mesa, El Cajon, and Vista have taken the position such use is prohibited because that use is not specified as an allowed use. The City of San Diego, which has allowed such uses in the past, will be looking at the issue again. Other cities such as Oakland, San Francisco, Clovis, and West Hollywood have ordinance which allow the uses, but provide for specific restrictions and locations. Santa Barbara allows marijuana dispensaries but will be reevaluating their current ordinance to make the ordinance more enforceable. Environmental Review A report prepared to investigate and evaluate a future action of the City would be considered exempt pursuant to Section 15306, Class 6 Information Collection, of the California Environmental Quality Act. Class 6 consists of basic data collection, research, experimental management and resource evaluation activities that do not result in a serious or major disturbance to an environmental resource. These may be strictly for information gathering purposes, or as part of a study leading to an action which a public action has not yet approved, adopted or funded. Recommendation 1. Direct staff to complete further investigation, commence studies and procedures necessary for the adoption of measures prohibiting or regulating establishments dispensing marijuana for medical purposes, and prepare a report to make recommendations regarding an amendment to the land use code related to facilities for the dispensing of medical marijuana; or, 2. Provide additional direction to staff and prepare a report to Council. Attachments 1. Ordinance 2009-2321 2. City Council Staff Report dated July 21, 2009 3. National City Police Department Memorandum dated July 13, 2009 4. Attomey General "Guidelines for the Security and Non -Diversion of Marijuana Grown for Medical Use", August 2008 ggy G PrincipM'F fanner Director of Development Services Ma(vam Babaki ORDINANCE NO. 2009 — 2321 AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTED PURSUANT TO GOVERNMENT CODE SECTION 65858 AS AN URGENCY MEASURE TO TAKE EFFECT IMMEDIATELY, ENACTING A MORATORIUM PROHIBITING ESTABLISHMENTS DISPENSING MARIJUANA FOR MEDICAL PURPOSES IN NATIONAL CITY WHEREAS, National City, acting through its City Council functioning as the Board of the Community Development Commission ("CDC"), has been very proactive over the years in efforts to revitalize the City through redevelopment activities; and WHEREAS, the CDC Board has created a redevelopment project area of approximately 2,000 acres in the community; and WHEREAS, in addition to various projects within the redevelopment project area, the CDC Board has submitted land use and specific plan proposals for approval by the City, including proposals affecting the Downtown Project in the vicinity of 8th Street and National City Boulevard, and that portion of the City which is west of National City Boulevard; and Plan; and WHEREAS, the City is engaged in the initial stages of amending the General WHEREAS, a common element of the zoning, General Plan, and specific plan proposals is the encouragement of projects within specified areas which would promote a certain atmosphere of cohesiveness and harmony of land uses within those areas; and WHEREAS, as a result of the enactment of Health and Safety Code Section 11362.5, known as the Compassionate Use Act of 1996, inquiries have recently been made to City staff concerning the location in the City of establishments dispensing marijuana for medical purposes; and WHEREAS, there is concern by the City council that such establishments may conflict with the contemplated redevelopment, zoning, General Plan, and specific plan proposals described hereinabove and which the City will be considering in the future; and WHEREAS, research conducted by the National City Police Department through the DEA, concludes that marijuana is a dangerous, addictive drug that poses significant health threats to users; marijuana has no medical value that can't be met more effectively by legal drugs; marijuana users are far more likely to use other drugs like cocaine and heroin than non - marijuana users; and drug legalizers use "medical marijuana" as a red herring in an effort to advocate broader legalization of drug use; and WHEREAS, the National City Police Department stands firmly against the location of medical marijuana establishments in the City, a position expressed by Dr. Adolfo Gonzalez, Chief of Police; and Ordinance No. 2009 — Page 2 WHEREAS, the City Council finds it necessary and appropriate to study and consider the effects of establishments dispensing marijuana for medical purposes, for example, to gather information as to the effect such establishments have had upon other communities; and WHEREAS, existing land use controls do not adequately address the potential adverse effects of the establishments dispensing marijuana for medical purposes in the community; and WHEREAS, the City Council finds that there is a current and immediate threat to the public health, safety and welfare of the location in the City of establishments dispensing marijuana for medical purposes, and that the issuance of building permits, certificates of occupancy and other entitlements for use by such establishments would result in a threat to the public health, safety and welfare; and WHEREAS, the City Council finds it essential to protect the health, safety and welfare of the citizens of the City of National City to enact a moratorium for a period of 45 days on the locating of, development, or approval of establishments dispensing marijuana for medical purposes; and WHEREAS, the City Council intends to adopt, after appropriate study, zoning measures that would apply throughout the City prohibiting or regulating establishments dispensing marijuana for medical purposes as soon as practicable, and directs the Planning Commission of this City to commence studies and procedures necessary for the adoption of such prohibitions or regulations. NOW, THEREFORE, the City Council of the City of National City does ordain as follows: Section 1. For a period of 45 days from the effective date of this Ordinance, no building permit, certificate of occupancy, nor entitlement for use shall be issued for and no construction shall take place relating to an establishment dispensing marijuana for medical purposes, and no building permit, certificate of occupancy, nor entitlement for use shall be issued for and no construction shall take place relating to the location, development, or approval of any establishment dispensing marijuana for medical purposes. Section 2. The City Council hereby directs the Planning Commission to commence studies and procedures necessary for the adoption of measures prohibiting or regulating establishments dispensing marijuana for medical purposes. Section 3. This Ordinance is adopted as an urgency ordinance necessary for the immediate preservation of the public health, safety and welfare within the meaning of the Government Code and shall take effect immediately. Ordinance No. 2009 — Page 3 Section 4. If any portion of this Ordinance is found to be invalid, it is the intention of the City Council that the remaining valid provisions of the Ordinance be severed from the invalid provisions and remain in full force and effect. PASSED and ADOPTED this 21st day of July, 2009. Ron Morrison, Mayor ATTEST: a Mich: el R. Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, 111 City Attorney Passed and adopted by the Council of the City of National City, California, on July 21, 2009, by the following vote, to -wit: Ayes: Councilmembers Morrison, Parra, Sotelo-Solis, Van Deventer, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California MICHAEL R. DALLA City Clerk of the City of National City, California By: Deputy I HEREBY CERTIFY that the foregoing ordinance was adopted on July 21, 2009, under the provisions of Section 65858 of the California Government Code and became effective immediately upon said adoption. I FURTHER CERTIFY THAT said ordinance was read in full prior to its final passage or that the reading of said ordinance in full was dispensed with by a vote of not less than a majority of the members elected to the Council and that there was available for the consideration of each member of the Council and the public prior to the day of its passage a written or printed copy of said ordinance. I FURTHER CERTIFY that the above and foregoing is a full, true and correct copy of ORDINANCE NO. 2009-2321 of the City Council of the City of National City, passed and adopted by the Council of said City on July 21, 2009. Cit. Clerk of the City of N tional City, California By: Deputy City of National City, California COUNCIL AGENDA STATEMENT IEETING DATE August 18, 2009 AGENDA ITEM NO. 17 ITEM TITLE Public Hearing — Street Vacation and Coastal Development Permit to Vacate an Unimproved Alley to Restrict Public Access South of West 23rd Street and North of Bay Marina Drive in the Coastal Zone. Case file no. 2009-04 SC, CDP. APNs 559-117-04 to 07 & 12 PREPARED BY Martin Reeder, 336-4313 DEPARTMENT Development Services/Planning EXPLANATION The City Council initiated the vacation request on May 19, 2009 to vacate an unimproved alley north of Bay Marina Drive. The Planning Commission determined that the alley vacation is consistent with the General Plan on July 20, 2009. The attached Background Report describes the proposed vacation in more detail. Vacating this unneeded right-of-way is a cleanup effort necessary for future development on the property, for which the City currently has an Exclusive Negotiation Agreement with a potential developer. Environmental Review x N/A Exempt pursuant to CEQA, Section 15305 Minor Alterations in Land Use Limitations, Class 5. The street and alley vacation do not result in any changes in land use. Approved By: Finance Director Financial Statement N/A Account No. Staff concurs with n determination and recommends approval of the alley vacation. BOARD / COMMISSII RECOMMENDATION The Planning Commission determined the Street Vacation request complies with the General Plan. Vote: Ayes — DeLaPaz, Farias, Baca, Alvarado, Pruitt, Reynolds, Flores. ATTACHMENTS ( Listed Below) Resolution No. 1. Background Report 3. Location Map 2. Recommended Findings 4. Requested Alley Vacation Location A-200 (9/99) BACKGROUND REPORT The requested street vacation area is a 20 feet wide by 250 feet long alley that bisects the block bordered by Harrison Avenue, West 23rd Street, Cleveland Avenue and Bay Marina Drive. Six parcels, all owned by the City's Community Development Commission, lie adjacent to the alley. All but one of the lots are zoned Medium Manufacturing — Coastal Zone (MM-CZ). The southwestern lot on the comer of Harrison and West 23`d Street is zoned Tourist Commercial — Coastal Zone (CT-PD-CZ). The alley is a former, now unused, railroad right -of way, although the tracks still run through the property from MSI south towards Manna Gateway Plaza. The entire block that is bifurcated by the alley borders recently approved streetscape improvements to the Bay Marina Drive Plaza. In addition, the City currently has an Exclusive Negotiation Agreement with a developer regarding the property, although no plans have yet been submitted or approved. In order to prepare the site for future development, the alley must be vacated. Alley Vacation In accordance with the City's Street Vacation Procedures, the Council initiated the street vacation request on May 19, 2009. Pursuant to the Streets and Highways Code, Division 9, Part 3, Chapter 3 and the Street Vacation Procedures, the Planning Commission (7-0 vote) determined the vacation request is consistent with the General Plan based on the following: • The alleyway has never been used for vehicles or for emergency and safety vehicular access to the area. ■ This rail line is no longer in use and that there are no other easements that would prevent vacation of the alley. • The alley is not identified as a Circulation Element road in the General Plan. Coastal Development Permit The associated Coastal Development Permit is required per the California Coastal Commission, as a street or alley vacation is considered to be "development" as defined in the Coastal Act. The project area is located adjacent to the Harbor District Specific Plan Area (HDSPA), whose northern boundary is Bay Marina Drive. However, General Plan Urban Development Policies pertaining to the HDSPA also encourages Tourist Commercial development in the area. Development of the site for tourist commercial use is identified in the following General Plan Policies: Urban Development Policy K states: The City encourages development of marina and tourist commercial uses in the Harbor District to carry out its Local Coastal Program. Urban Development Policy L states: The City will coordinate with the Community Development Commission and Coastal Commission to plan for a wider variety of uses within the Harbor District as redevelopment proposals are formulated. Summary The General Plan identifies future development of the Harbor District, including Tourist Commercial uses, and the Circulation Element does not identify the alley as a Circulation Element Road, and there are no plans to improve the alley. The proposed street vacation would be consistent with the policies and goals of the General Plan. 1 RECOMMENDED FINDINGS FOR APPROVAL OF THE STREET VACATION 1. That the right-of-way to be vacated is not needed for present or future public transportation uses and/or for utility service, since the properties abutting the alley under consideration will continue to have access to public streets and utilities. 2. That the vacations of the proposed segment of right-of-way is consistent with the City's General Plan, since the General Plan encourages the development and implementation of the Harbor District Specific Plan, which the project area is adjacent to, and the Circulation Element within the General Plan does not identify any future connection for, or improvements to the alley. 2 sit \,,, ,, \ _----_ 0 \ t% �, CT-PD Z -CZ ''')\ 4 \ t " cP MM-CZ N� " " Marina Gateway Plaza • • • • • 25 Y\ Project Location — — — Zone Boundary I 1 I I Feet 0 70 140 280 APN: 559-117-04 to 07 559-117-12 Planning Commission July 20, 2009 Location Map 2009-04 SC 07.14.09 City of National City, California COUNCIL AGENDA STATEMENT Ii1EETING DATE August 18, 2009 AGENDA ITEM NO. 18 iITEM TITLE TEMPORARY USE PERMIT — Baptism and BBQ sponsored by Cornerstone Church of;..at, Diego at Las Palmas Park on August 23, 2009 from 12 p.m. to 8 p.m. with no waiver of fees. A Facilities Use Permit is required for the use of the Municipal Pool. PREPARED BY EXPLANATION Vianey Rolon, 336-4364 DEPARTMENT Neighborhood Services Division This is a request from the Cornerstone Church of San Diego to conduct a BBQ at the Las Palmas Park on April 23, 2009 from 12:00pm to 8 pm. This event will also include a series of baptisms performed at the Las Palmas Municipal Pool from 4:30pm to 6pm. Set up for the event will commence at 12:00 p.m. on the day of the event. Cornerstone Church will set up their stage and will provide their own generators for amplified sound where the worship band will sing and perform from 2 p.m. to 5 p.m. The applicant is not requesting the use of the City's stage and will provide security for the event. N Environmental Review X N/A Financial Statement The City has incurred $237.00 for processing the TUP. Total fees: $237.00 Approved By: Finance Director Account No. STAFF RECOMMENDATION Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval with no 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 (9/99) CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DIVISION APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: Cornerstone Church of San Diego EVENT: Baptism/BBQ DATE OF EVENT: August 23, 2009 TIME OF EVENT: 12 a.m. to 8 p.m. APPROVALS: PLANNING YES [ x ] NO [ ] SEE CONDITIONS [ ] COMMUNITY SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ x ] ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ ] PUBLIC WORKS YES [ x ] NO [ ] SEE CONDITIONS [ ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ ] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ ] CONDITIONS OF APPROVAL: RISK MANAGER (619) 336-4300 Responding on behalf of the City Attorney's office and on behalf of the Risk Manager (who is out of the office until August 10), I recommend approval of the TUP, subject to the following conditions: ❖ That the applicant execute an indemnity and hold harmless agreeinent in which they agree to indemnify and hold harmless the City and its officials, agents, and employees from any liability or loss arising out of the event. + The applicant shall also furnish evidence of a commercial general liability insurance policy with limits of at least $1 Million per occurrence and $4 Million aggregate, with the policy naming the City and its officials, agents, and employees as additional insureds 09/19/2008 21:34 619336a 7 NATIONAL CITY PAGE 08 1 Tyr'- of Event ufilic Concert :'grade Holton Picture Fa,r Demonstration Grand Opening Festival Circus Other Eve -it Title' �t�1P�t Si.ti) 139 Evc rt Location: LAS P L L w► ta<) PSI V 14. Eve t Date(s) From S I io Z3 Total Anticipated Atlendanc MonthlDay/Ycnr Event Hours _' :00 J 1 Spertatorkj aine to Zpp am r Setup/assembly/construction Date. %/ L3/05_ Start time: fat _ Community Event _ Block Party s) Please describe the scone of your setup/assembly work (specific details): Dismantle Date- x%V0 S Completion Time: am� List airy street(s) requiring Closure as e result of this event. Include street name(s), day and time :,f closing and day and time of reopening. VI 6 It ... { .;. ._.�'rr ,.:'+.. a ';`••r -=n- • I t...... .,. ! .. h',',', • Iri !1.••mo:. ._. •. . Nn • 1�. ee- � -ty�;{.+..i �. u.f f T �Z-• 1.. r �+i. _s Spons :nnq Organization: Ccwi'teVStp/1< Cttt11rCi" Of- StAt4i3 For rofii Chief { fticer of Organization iName) Y r� /t,, 3 to—e t4- t Applir r1t rNanlf'i' ECL -ti ( P- J C4) V Address. l`( Sw-e-e+u,ra-4-ev. Leo k e-t>ivcra 1CILf`I /S}'U I/L1 u3 Da, vn, phone 1,6/S) —66y1, Evening Phone- ( Fax t (� C;:ntac! Pr-rzsn on site day of me ev. nl ECIOI L Gt. (alb) q -6 NOTE- THIS P6P.SON MUST SE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IM4tEDIATELY AVAILABLE TO CITY OFFICIALS 1 09/19/2008 21:34 61933647'7 NATIONAL CITY PAGE 09 Is your organization a "Tax Exempt, nonprofit" organization? Are rodinission. entry, vendor or participant fees required? If YE3, please explain the purpose and provide arnount(s): YES NO _ YES NO Estimated Gross Receipts including ticket, product :In d d sponsorship safes 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? Peas:: provide a DETAILED DESCRIPTION of your event. Include details regarding any compi nents of your event such as the use of vehicles, animals, rides Or any other pertinent inform Dtion ahout the event. Ativ‘A I._;__� i4 So (Jo d fov +k e ct,,4-cua, 14/dvSti:14 fk4 t\ki y ' E r'JE_) If the event Jr,,CAV5 the Sale (If rar; anll Ih,, cars Cnme exclusively from National City car dealers? If NO, list any additional dealers involved in 1 le sale: 09/19/21308 21:34 6193364.5V NATIONAL CITY PAGE 10 "ES'INO Does the event involve the sale or use of alcoholic beverages? Will items or services be sold at the event? If yes, please describe: 'r ES NO Does the event involve a moving route of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. Doesthe event involve the use of tents or canopies? If 'IFS, Number of tent/canopies _ Si NOTE: A Sizes Separate Fire Department permit is required for tents or canopies Y S tO Yf S NO Witl the event involve the use of the City stage jor PA system? ♦?1A •sk eh Jn add lion to the route map required above, Tease attach a diagram showing the overall layout and ;i: 1-up locations for the following items: Alcoholic and Nonalcoholic Concession and/or Beer Garden areas- '' Food Concession and/or Food Preparalron areas Please describe how food will he served at the event: _ If you intend to cook foed in the even' area please specify the method: GAS ELECTRIC -- CHARCOAL _ OTHER (Specify): Portable and/or Permanent Toilet F chiles Number of portable toiiets _- ]fur even" 750 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 • =encing, barriers and/or barricades Y enerator locations and/or source of electricity 'anopies or tent locations (include tent/canopy dimensions) 3ooths. exhibits, displays or enclosures >caffolding, bleachers, platforms, stages, grandstands or related structures 'ehi,nies and/or trailers )ther related Sven( components not covered _above - 'rash containers and dui —Tipsters 'tote- You muss properly dispose of v;as19 and garbagc throuchnut the term of your vent and immediately upon conclusion of the even' the area must be returned to a clean c-)nd8ion ) umber cf tr;..sh cans: Trash :ecWrners ,with lids: _ t7=2SCntie ^.�,r (lia!1 (O( clean- , - - u d•:rI re,n<;;,71 ;, �•:�;;y ,�nrl g.urhage d,:rfnrj and offer the event 09/19/2008 21:34 6193354— 7 NATIONAL CITY PAGE 14 City of National City PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION AGREEMENT Per: ons requesting use of City property, facilities or personnel are required to proiide a minimum of $1,000,000 combined single limit insurance for bodily injur/ and property damage which includes the City, its officials, agents and emp oyees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit. Org< nization YIglSIyvt Pers >tt in Charge of Activity ___Edati Address 191 g SGU, p er., 41-cy KA 1 p / L c jl� Teter hone �{e2 j 333 Date(s) of Use HOLD HARMLESS AGREEMENT As a c pndition of the issuance of a temporar/ use permit to conduct its activities on put. !lc or private property, the undersigned hereby agree(s) to defend. rode" irfy and hold harmless the City of National City and the Parking Authority and its: officers, employees and agents from and against any and ail claims, demards, costs, losses, liability or. for any personal injury, death or property dames =, 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 Contrarfors. t I �—t e v 1c�►� C)tf� al T ie °ate fcrIse, Certifica!e of Insurance Approved Date 09/19/2000 21:34 619336' NATIONAL CITY PAGE 15 Non-profit organizations, which meet the criteria on page v of the instructions, will be cc isidered for a waiver. If you would like to request a waiver of the proce sing fees. please complete the questionnaire below. 1_ is the event for which the TUP is sought sponsored by a non-profit organization? Yes (proceed to Question 2) No (Please sign the form and submit it with the TUP Application) 2. Please state the name and type of organization sponsoring the event for which the TUP is sought and then proceed to Question 3. Name of the sponsoring organization Calrli-ev i-rht (.tkUV(t1 R it\ n, e Type of Organization G(-t /vC-C1 (Service Club, Church, Social service Agency, etc.) 3_ Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) No (Please sign the form and submit it with the TUP Application) 4_ NiII the proceeds provide a direct financial benefit to an individual Nho resides in or is employed in the city, and who is in dire financial teed due to health reasons or a death in the family? Yes (Please provide an explanation and details. No (Please proceed to Question 5) PAGE 16 09/19/2008 21:34 6193364^'7 NATIONAL CITY 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. KNo (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 Jrganization, which has been the direct recipient of Community Development Block Grant (CD$G) funding? Yes Year funds were received: Funds were used to: (P lease sign the form and submit it with the TUP Application) 09/19/2008 21:34 6193364-'7 NATIONAL CITY PAGE 13 Eve i! _Tor Office 'Use OnCy Department bate Approved? Yes No Initial Spe;ific Conditions of Approval Coun ;iI Meeting Date: Appre,'ed: Yes No Vote t(dlti enn reHF:, r)ireci:.lf Building H �:;fr_ty hep:3rtmm,1 cornerstone CHURCH Of SAN DIECcO August 6, 2009 City of National City Attn: Vienna 1243 National City Blvd NationalCity, California 91950 Dear Vienna, Please find attached a simple map our depicting equipment location for our church :even'. August 23`d. Please contact either Eddie Palato or myself at the Thanks again for all your support! arc Liato Executive Pastor below if you have any questions. ftirf.-x, (ivz kee"As... • tyao sweetwater Rd. Notional city, calitornia 9195o 619.42.5.9333 boogie Maps http://maps google.com/maps?oe=UTF-8&sourceid=navclient&grns=1. oo*le maps A. National School District: Las Palmas 1900 E 18th St, National City, CA - (619) 336-8500 1 review (MjUic/Crwik 41' --vtr of 1 8/6/2009 10:42 AM City of National City, California COUNCIL AGENDA STATEMENT -METING DATE August 18, 2009 AGENDA ITEM NO. 19 ITEM TITLE TEMPORARY USE PERMIT - Integrity Charter School's Physical Education program at Kimball Park from 7:15 a.m. to 8:45 a.m. and 1 p.m. to 2:15 p.m. commencing September 9, 2009 thru June 18, 2010 with no waiver of fees. Note: A Field/ Facilities Use Permit will also apply. PREPARED BY EXPLANATION Vianey Rolon, 336-4364 DEPARTMENT Neighborhood Services Division This is a request from the Integrity Charter School to conduct their Physical Education sessions at Kimball Park every weekday from 7:15 a.m. to 8:45 a.m. and from 1 p.m. to 2:15 p.m. starting September 9, 2009 until June 18, 2010. Students will be dropped off Monday -Thursday at Kimball park for Physical Education class. Students will be in grades 6-7. Additionally, students in grades K-5 will go to the park for PE class 2-3 times per week usually in the afternoon. No City services are been requested. Environmental Review X N/A Financial Statement The City has incurred $237.00 for processing the TUP through various City departments. Total fees are $237.00. Approved By: Finance Director Account No. STAFF RECOMMENDATION Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval with no 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 (9/99) CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DIVISION APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: Integrity Charter School EVENT: Integrity Charter School Physical Education DATE OF EVENT: September 9, 2009 thru June 18, 2010 TIME OF EVENT: School days from 7:15 a.m. to 8:45 a.m. and 1 p.m. to 2:15 p.m. APPROVALS: PLANNING/BUILDING YES [ x ] NO [ ] SEE CONDITIONS [ ] COMMUNITY SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ x ] ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ ] PUBLIC WORKS YES [ x ] NO [ ] SEE CONDITIONS [ ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ ] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ ] CONDITIONS OF APPROVAL: RISK MANAGER Responding on behalf of the City Attorney's office and on behalf of the Risk Manager (who is out of the office until August 10), I recommend approval of the TUP, subject to the following conditions: ❖ That the applicant execute an indemnity and hold harmless agreement in which they agree to indemnify and hold harmless the City and its officials, agents, and employees from any liability or loss arising out of the event. ❖ The applicant shall also furnish evidence of a commercial general liability insurance policy with limits of at least $1 Million per occurrence and $4 Million aggregate, with the policy naming the City and its officials, agents, and employees as additional insureds. Type of Event: _ Public Concert Parade Motion Picture Fair Demonstration _ Grand Opening Festival Circus Other _ Community Event Block Party Event Title: l l r Q — k_Y Th vf5) ��4 /it.tL-� Event Location: �f rn 1.36L Zl Ct-t Event Date(s): From 61 to (o, 61 iL7 Total Anticipated Attendance: 7 Month/Day/Year ( X Participants) �2K ip ( Spectators) Actual Event Hours' �jjlpm to / m );CD Setup/assembly/co struction Date: 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: (y 9 0,y'ta�V %Ltbl For Profit J� Not -for -Profit Chief Officer of Organization (Name) � YGbo rn ({ Z Applicant (Name): 0' ^ ,rL-rt-I rn. ( ii,,/e.� lJ Address: —1u 1 (U ►'i d rit t o 'p pi 3 Daytime Phone: (���1 �t7 46s Evening Phone: (L" i) �-- Fax: 3h'ZYto .� Contact Person "on site" day of the event: Pager/Cellular: tp!C -% LJ3 S1 NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS Is your organization a "Tax Exempt, nonprofit" organization? Are admission, entry, vendor or participant fees required? If YES, please explain the purpose and provide amount(s): YES _ NO YES X NO $ Estimated Gross Receipts including ticket, product and sponsorship sales from this event. $ Estimated Expenses for this event $ What is the projected amount of revenue that the Nonprofit Organization will receive as a result of this event? Please provide a DETAILED DESCRIPTION of your event. Include details regarding any components of your event such as the use of vehicles, animals, rides or any other pertinent information about the event. hA‘6-t ll c voi° Mt) r 04' hib dt T h __Autal vkali21' :5 w t LI Zry Orch u i 1l be Gzywk '5--ic b`Vi tAv ► it (X +17 rte_ c P6' Cr y -5 r 2 K used.. YES _ NO If the event involves the sale of cars, will the cars come exclusively from National City car dealers? If NO, list any additional dealers involved in the sale: 2 YES/\ NO Does the event involve the sale or use of alcoholic beverages? YES,)( NO Will items or services be sold at the event? If yes, please describe: YES)( NO Does the event involve a moving route of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. YES L NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. YES NO Does the event involve the use of tents or canopies? If YES: Number of tent/canopies Sizes NOTE: A separate Fire Department permit is required for tents or canopies. NO Will the event involve the use of the City stage or PA system? In addition to the route map required above, please attach a diagram showing the overall layout and set-up locations for the following items: Alcoholic and Nonalcoholic Concession and/or Beer Garden areas. • Food Concession and/or Food Preparation areas Please describe how food will be served at the event: 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) L 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: Please describe your procedures for both Crowd Control and Internal Security 1 I : 25. 6Y(- 2.D YESNO 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: YESf NO Is this a night event? If YES, please state how the event and surrounding area will be illuminated to ensure safety of the participants and spectators: Please indicate what arrangement you have made for providing First Aid Staffing and Equipment. Please describe your Accessibility Plan for access at your event by individuals with disabilities: Please provide a detailed description of your PARKING plan: N�. td Y rU rek ) Ott LA) 1 thbppiI 1 A. Please describe your plan for DISABLED PARKING: r o%2L i NI 4 Please describe your plans to notify all residents, businesses and churches impacted by the event: p\ G 0-6kd i-f`1 6 Chi L� LL 4) Go l 1.1 bt 0/14_ NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. YES NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: Type of Music: YES NO Will sound amplification be used? If YES, please indicate: Start time: Number of Bands am/pm Finish Time am/pm _ YES/NO Will sound checks be conducted prior to the event? If YES, please indicate: Start time: am/pm Finish Time am/pm Please describe the sound equipment that will be used for your event: NO Fireworks, rockets, or other pyrotechnics? If YES, please describe: YES/ NO Any signs, banners, decorations, special lighting? If YES, please describe: Revised 08/10/05 Event: For Office 'Use OnCy Department Date Approved? Yes No Initial Specific Conditions of Approval Council Meeting Date: Approved: Yes No Vote: Kathleen Trees, Director Building & Safety Department 6 City of National City PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION AGREEMENT Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit. Organization 1 `�tli et Q,Ituutstey l Person in Charge of Activity 6CA-i `firt7L'be Address '101 1\D X w r`rtx l.i-"I!�j TJ kie, Telephone 1'9 Date(s) of Use 1 I I O r) 11C � I D 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. Signatu a of Applicant Official Title Date For Office Use Only Certificate of Insurance Approved Date 7 REQUEST FOR A WAIVER OF 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) O 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 Quesrtiion� 3. Name of the sponsoring organization-ieirli j 1. !,1. V1ei S_Itti51 Type of Organization v (Service Club, Church, Social Service Agency, etc.) 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) No (Please sign the form and submit it with the TUP Application) 4. Will the proceeds provide a direct financial benefit to an individual who resides in or is employed in the city, and who is in dire financial need due to health reasons or a death in the family? Yes (Please provide an explanation and details. No (Please proceed to Question 5) 8 5. Will the proceeds provide a direct financial benefit to city 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) S:2fcti,o.a g/4/97 Signature Date 9 City of National City, California COUNCIL AGENDA STATEMENT _METING DATE August 18, 2009 AGENDA ITEM NO. 20 ITEM TITLE TEMPORARY USE PERMIT — "Celebrating Community" Block Party hosted by the One Its - Christ/ River of Live Church on September 12, 2009 from 11 a.m. to 4 p.m. with no waiver of fees. PREPARED BY Vianey Rolon, 336-4364 DEPARTMENT Neighborhood Services Division EXPLANATION This is a request from the One in Christ/ River of Life Church to conduct a "Celebrating Community" Block Party confined to the church grounds on 7t' Street, between F & G Avenues on September 12, 2009 from 11 a.m. to 4 p.m. This event will include about 10 6x9 portable canopies, 2 portable parties, 18-6 ft. tables, 50 chairs, and the assembly of a modular stage unit. Informational and public service booths will be available, as well as activities for children supervised by adults. Hot dogs will be given away. There will be adults at each corner to greet participants and to guide them to the activities of choice. A first aide station will be in place, too. Environmental Review X N/A Financial Statement The City has incurred $237.00 for processing the TUP through various City departments, plus $200.00 for the Fire permits. . Total fees are $437.00. Approved By: Finance Director Account No. STAFF RECOMMENDATION Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval with no 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 (9199) CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DIVISION APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: One in Christ/ River of Life Church EVENT: "Celebrating Community" Block Party DATE OF EVENT: September 12, 2009 TIME OF EVENT: 11 a.m. to 4 p.m. APPROVALS: PLANNING YES [ x ] NO [ ] SEE CONDITIONS [ ] COMMUNITY SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ x ] ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ ] PUBLIC WORKS YES [ x ] NO [ ] SEE CONDITIONS [ ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ ] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ ] CONDITIONS OF APPROVAL: RISK MANAGER (619) 336-4300 I've reviewed the application for the proposed use and note that the free event will he held on church grounds and the adjacent parking lot. This new event does not appear to present any undue liability exposure to the City in terms of vendors or facilities. However, I suspect the turnout may be larger than expected, in light of the free food and entertainment. In addition, there appear to be some pages missing from the application, notably the hold harmless and indemnity agreement. which must be signed by the sponsoring organization's representative. Pending receipt of same, I have no objection to the -application. FIRE DEPARTMENT (619) 336-4554 Stipulations required by the Fire Department for this event are as follows: 1) Access to the Church to be maintained at all times, to both entrances and Fire Department connections for fire sprinkler systems, standpipes, etc. 2) Fire Department access into and through the booth areas are to be maintained at all times. Fire apparatus access roads shall have an unobstructed width of not Tess than 20 feet and an unobstructed vertical clearance of not less than 13 feet 6 inches 3) Fire Hydrants shall not be blocked or obstructed. 4) Participants on foot are 10 move immediately to the sidewalk upon approach of emergency vehicle(s). 5) Vehicles in roadway are to move immediately to the right upon approach of emergency vehicle(s). 6) Provide a 2A:10BC fire extinguisher at stage. Extinguisher to be mounted in a visible location between 31/z to 5' from the floor to the top of the extinguisher. Maximum travel distance from an extinguisher shall not be more than 75 feet travel distance. All fire extinguishers to have a current State Fire Marshal Tag attached. Extinguishers shall be mounted in conspicuous area inside tent or canopy. Please see attached example. 7) Internal combustion power sources that may be used for inflatable rides shall be of adequate capacity to permit uninterrupted operation during normal operating hours. Refueling shall be conducted only when the ride is not in use_ 8) Internal combustion power sources shall be isolated from contact with the public by either physical guards, fencing or an enclosure. Internal combustion power shall be at least 20 feet away from the ride. 9) A fire safety inspection is to be conducted by the Fire Department prior to operations of the carnival to include all rides, cooking areas, game booths, etc. I2) Required inspections taking place, after hours, holidays, and weekends will be assessed a minimum of one hundred ($100.00) dollars. 11) Any electrical power used is to be properly grounded and approved. Extension cords shall be used as "temporary Wiring" only. If tents or canopies are used, tents having an area in excess of 200square feet and or canopies in excess of 400 square feet or multiple tents and or canopies placed together equaling or greater than the above stated areas, are to be used, they shall be flame- retardant treated with an approved State Fire Marshal seal attached. A ten feet separation distance must be maintained between tents and canopies. A permit from the Fire Department must be obtained. Cooking shall not be permitted under tents or canopies unless the tents or canopies meet "State Fire Marshal approval for cooking. Certificate of State Fire Marshal flame resistancy shall be provided to the National City Fire Department if applicable. A permit for the projected canopies/tents shall be four hundred ($400.00) dollars. Fees can only be waived by City Council. Canopies: Tents: 0 — 400 sf - $0 401 — 500 sf - $250.00 501 — 600 sf - $300.00 601 — 700 sf - $400.00 0 —200 sf - $200.00 201 — (+) sf - $400.00 13) First Aid will be provided by the Church personnel. 14) Concession stands utilized for cooking shall have a minimum of 10 feet of clearance on two sides and shall not be located within 10 feet of amusement rides or devices 15) All cooking booths or areas to have one 2A:10BC. If grease or oil is used in cooking a 40:BC or class "K" fire extinguisher will be required. . All tire extinguishers to have a current State Fire Marshal Tag attached. Please see attached example. 16) Fees can only be waived by City Council. Type of Event: _ Public Concert Parade Motion Picture Event Title: `Jo.Czko. VW. M.A. Fair _ Demonstration _ Grand Opening Event Location: C) Festival Circus Other Community Event kBlock Party Cuc-1-1,411.:knit` ' (7 �(r � Pa -- _IP•11-42 c 'f Event Date(s): From yi/jl o 9 to {'I ii.jo9 Total Anticipated Attendance: Month/Day/Year Actual Event Hours: i 1,00 pm to y am/ r5`n Setup/assembly/construction Date: 9i/i4 09 Start time: c2(ir 4.44. fu J 1 0_4 sew Participants) Spectators) De) II in - Please describe the scope of your setup/assembly work (specific details): _re y r,1 7' aI LL.Q7, - Pam: tt-2-2.im t� C� �l.ti O� .firn� T�J / C¢- LI- � r�1 i e� C ) eS� der / 2 CiYIA,� ua i'1;-}1t.C"Yt0 �t.r� 'F' r2-�YKz^ n; "kz j Dismantle Date. gi,f.)-1 ay completion kre pr„,. am/pm P� s List any street(s) requiring closure as a result of this event. time of closing and day and time of reopening. Include street name(s), day and Sponsoring Organization: Gtri�L r� Cwz,t', ! 141 J�� ��.�� j`Lokofit Not -for -Profit Qvru� , '4 �i`y"3 cad Address: I, 5. �r +��� CC�e u (,c; cll cut) Chief Officer of Organization (Name) Applicant (Name): 3a Daytime Phone: ff 477-5'/Li1 Evening Phone: (b/' 94•S-gciV F5'77--35)� Contact Person "on site' day of the event: (_v : ' \�? Pager/Cellular: 6,7 Q - r q__t1 -,P o /y NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS 1 F51 f". 7: ret., Is your organization a "Tax Exempt, nonprofit" organization? YES _ NO Are admission, entry, vendor or participant fees required? YES / NO If YES, please explain the purpose and provide amount(s): $ —(:79 _ Estimated Gross Receipts including ticket, product and sponsorship sales from this event. $ ' % 3da 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. _QR.e 1Q_c. C rG M Y_ • 3 s r� 2. •`,/�NLVI•YY.�.- C t _ya 1 tv a r _ 1 ;..► f Dacv, l*r,, Li, Cr, „.„)/ •-/ AL i.-d-w.z,) ‘ -• fr /4' y9; d e.,,,e: 'Is";., ' Q.-.ck =^45z ainio : i, Lc) , ,,itcil u1S t.3 -87.- 3Q Q=e3218: ,Z,14.,,.irwLQ Q,40, "/ . 'iiL]`Li-- Q,,^`'M., a (,,�..,, p snu '� N /L71/9'l, i� a• : �� uA�7'G�i A.�/)=.�[i0. ?� _ 4yL%-/YYIX.G%v.'r +c�,kl 4:420 7tYL et _ YES N If th event invol NV + iAr National City car d sale: t: z eLisS $ -- ' --<-"A, iAIt Hci.y i4/07) tio$t" ves the sale of cars, will the cars come exclusively from 4-• i ©:� S • 0"' 4 eaters? If NO, list any additional dealers involved in the 0 ' 2 YES XNO Does the event involve the sale or use of alcoholic beverages? _ YES )(NO Will items or services be sold at the event? If yes, please describe: _ YES -X NO Does the event involve a moving route of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. X YES _ NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. _X YES _ NO Does the event involve the use of tents or canopies? If YES: Number of tent/canopies D Sizes Cc `( x' 9 ° Pa- pc NOTE: A separate Fire Department permit is required for tents or canopies. YES _K NO VVili 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 , �Ip,� Please describe how food will be served at the event: 1.j-la h 1���c i> t t y� 9).." � 1 'J 1 i'c :-. ct 0. 5 L t'(n �z v.> 1r ,ti%- - ( wdC t-r +.:• e Kr f ad_ - Cott-- Ce + ck 5 17 + c, "- If you intend to cook food in the event area please specify the method: )( GAS ELECTRIC CHARCOAL OTHER (Specify): wi Vim. ➢ Portable and/or Permanent Toilet Facilities Number of portable toilets: Q. (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) a x ➢ Booths, exhibits, displays or enclosures , I ➢ Scaffolding, bleachers, platforms, stages, grandstands or related structures 4r'' ➢ Vehicles and/or trailers r Stew Other related event components not covered above ci7 " IQ , A,- 3 c' ➢ Trash containers and dumpsters 6�6666:4' 'a- , (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: CZ. ‘..Zc„uLec,� 0..,,u Describe your plan for clean-up and removal of waste and garbage during and after the event: t.vy /2;,a yV/, L " +6—gf1 'Y/" ..i (kl.;. Yv�Qd '✓ L1,14-e ty i. %7k J <At y - Q (J 3 ���"� z3 i �2isr, C.t�ic.c d` 5 L`�`'`�,�'r . ate_ o.�� �eu� .L�nt Please describe your procedures for both Crowd Control and Internal Security: _..1 .4 .11-tyL '..4) 0 tLnLl<s much/ C+..) K0—�.ML(/�, CucQ F r, Y c( P. _ YESC NO Have you hired any Profession Security organization to handle security arrangements for this event? If YES, please list: S u . c.."*'4 Security Organization: CU& Cv � d c„-,ze- Cvo t41 "tV. cw.a2---- C,x t9 PD4 FO _ YES -"Ms NO 1s 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: Security Organization Address: Security Director (Name): Phone: Please indicate what arrangement you have made for providing First Aid Staffing and Equipment (ILL t(-. 4 ,-.. c . 4 e - c A.r ,2sf-dt C -. Please describe your Accessibility Plan for access at your event by individuals with disabilities: V t�x�cz X J , li,v 11�, dL� Y+c'tcr 4-U2 6., ter v4_�cZ:61 2�cG: A.r...) 4- ..1.76e.e-i. a,zt� a+. Q• Ple�-r`ars�ef provide a detailed description of your PARKING plan: p —Pr", tat > ,Piye 0, ri7 yO.�cc..41i tom; -4— (ILA-.:L.7z=C -'2 L (/O '�'. ((V)) n: �.t:.M1t�4 ? J , , .0, i�t .d:�, J • 5-4.rzt- idC-,.1 Please describe your plan for DISABLED PARKING: . PA.17. :L e ""'..4Q-e--04) 4 Please describe your plans to notify all residents, businesses and churches impacted by the event - u.g,,,.,-..4., ,Rr.t 3 NOTE: Neighbor�o�'rtfe mus of fi d 72 hours in advance when events are scheduled in the City parks. AYES _ NO Are there any musical entertainment features related to your event? if YES, please state the number of stages, number of bands and type of music. Number of Stages: 1 Number of Bands: f PAL, - Type of Music: el -MR .mom .k t n t G 'r`ti-`� `j YES _ NO Will sound amplification be used? If YES, plea a indicate: Start time: 1 f op rr /pm Finish Time Si ' Gc> aml6) _ YES XC NO Will sound checks be conducted prior to the event? If YES, please indicate: Start time: am/'pm Finish Time am/pm Please describe the sound equipment that will be used for your event: YES 0 Fireworks, rockets, or other pyrotechnics? If YES, please describe: )C YES _ NO Any signs, banners, decorations, special lighting? If YES, please describe: Revised 08/10/05 N.c . k;o;)s 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 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 �Q_�, t �r� CR,,A-2//1 f y-e,t. CR14A4 Person in Charge of Activity Address b 3 S - te- i. L - , Yfv C , C qr q Sc� Telephone 619- qqs—So/i/ Date(s)ofUse y— /a,-a,00 9' 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 Appl ant `Q, eo ©.. , cA c L 7 at-ao os Official Title Date For Office Use Only Certificate of Insurance Approved Date 7 REQUEST FOR A WAIVER! OF 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) 0 tQ No (Please sign the form and submit it with the TUP Application) 2. Please state the name and type of organization sponsoring the event for which the TUP is sought and then proceed to Question 3. Name of the sponsoring organization c Ms , q_,,, cc e Q� c Type of Organization OfuuJJ.) (Service Club, Church, Social Service Agency, etc.) 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) No (Please sign the form and submit it with the TUP Application) 4. Will the proceeds provide a direct financial benefit to an individual who resides in or is employed in the city, and who is in dire financial need due to health reasons or a death in the family? Yes (Please provide an explanation and details. )C No (Please proceed to Question 5) C&vvt t :. a .,.od, � ) G> cL 8 9 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. Y, 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. A( 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: X\ No (P lease sign the form and submit it with the TUP Application) Signature Date 9 DRAFT Everything Is Free Hot Dogs Lemonade Bottled Water Balloons Snow Cones Health Screenings One In Christ Church and River of Life Church 619-477-4147 619-954-1829 635 East 7th Street, National City, CA 91950 YouAr.invited To n Block Party Saturday, September 12th l la.m. 4:00 p.m. Let's Celebrate Community Spirit! Health Screenings Free Er�terta, ncludmeet Hula D ng: ancers Vice s retake e vac e%tt°° Co -Sponsored By The City of National City Paradise Valley Hospital — National City Host Lions —Envision San Diego asear Exhibit `" Rac'ers against Drugs • jaa3'anN • 1 i 7sr 0f., I I a ry n o2; ; (YdS G%) _1Q7 ?5 r'Qf=1 Invoice No. 1 Block Party Budget For September 12, 2009 Customer I Name One In Christ and River of Life Church Address 635 East 7th Street City National City State CA ZIP 91950 Phone Oty 2 Balloons 1 Helium 1 Staging 20 20 lb of Ice 1 Food Trailer Rental 1 Hula Dancers Honorarium 1 Souvenier Program 1 Two Portable Toilets and One hand washing station Costs not donated 'INVOICE Misc Date Order No. Rep FOB H Unit Price TOTAL $ 14.99 $ 29.98 $ 100.00 $ 100.00 $ 489.50 $ 489.50 $ 3.69 $ 73.80 $ 50.00 $ 50.00 $ 100.00 $ 100.00 $ 250.00 $ 250.00 $ 157.64 $ 157.64 SubTotal $ 1,250.92 Shipping Payment Tax Rate(s) L Comments TOTAL $ 1,250.92 Name Paradise Valley Hospital has agreed to CC # cover most of the food and beverage Expires cost- Block Party Budget For September 12, 2009 Invoice No. 1 INVOICE Customer' Misc I Name One In Christ and River of Life Church Date Address 635 East 7th Street Order No. City National City State CA ZIP 91950 Rep Phone FOB Qty Description TUnit Price TOTAL 1 14 Kirkland Water @35 each + 1.75 deposit $ 5.34 $ 74.76 2 ' 9oz paper cups @ 360 $ 8.99 $ 17.98 10 Heinz Picnic Mustard, Relish, Ketchup 53 servings per unit $ 7.95 $ 79.50 13 Holly Beef Franks @40 $ 8.99 $ 116.87 11 Foster Frams Turkey Franks ©48 $ 5.57 $ 6127 2 6 7/8 in plates @ 300 $ 10.69 $ 21.38 6 'Lemonade base $ 3.99 $ 23.94 21 Hot Dog Buns @ 24 $ 2.29 $ 48.09 1 1Luncheon Napkins @ 600 $ 8.59 $ 8.59 2 18 34 plates @ 276 $ 14.69 $ 29.38 Donation from Paradise Valley Hospital 1 Payment Comments Name Paradise Valley Hospital has agreed to CC # cover most of the food and beverage Expires cost. SubTotal $ 481.76 Shipping Tax Rate(s) I y TOTAL $ 481.76 • City of National City, California COUNCIL AGENDA STATEMENT ..IEETING DATE August 18, 2009 AGENDA ITEM NO. 21 ITEM TITLE TEMPORARY USE PERMIT — 17`h Annual Fiesta Filipiniana Karaoke Competition hoste by the Seafood City Supermarket on September 26, 2009 from 10 a.m. to 10 p.m. at 1420 Plaza Blvd. with no waiver of fees. PREPARED BY Vianey Rolon, 336-4364 DEPARTMENT Neighborhood Services Division EXPLANATION This is a request from the Seafood City Supermarket to conduct the 17th Annual Fiesta Filipiniana Karaoke Competition at 1420 Plaza Blvd on September 26, 2009. Set-up for the event begins at 10 a.m. and the actual event runs from 10 a.m. to 10 p.m. This yearly event will include food canopies, a DJ, live music, and Karaoke entertainment on a stage supplied by the sponsor. Environmental Review X NIA Financial Statement Approved By: Finance Director The City has incurred $237.00 for processing the TUP through the various City departments, and $200 for the Fire Department Total fees are $437.00 Account No. STAFF RECOMMENDATION Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval with no waiver of fees. BOARD I COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. Application for a Temporary Use Permit with recommended approvals and conditions of approval. A-200 (9/99) CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DIVISION APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: Seafood City Supermarket EVENT: 17th Filipiniana Singing Competition DATE OF EVENT: September 26, 2009 TIME OF EVENT: 10:00am-10:00pm APPROVALS: PLANNING YES [ x ] NO [ ] SEE CONDITIONS [ ] COMMUNITY SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ x ] ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ ] PUBLIC WORKS YES [ x ] NO [ ] SEE CONDITIONS [ x ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ ] CITY A Fl ORNEY YES [ x ] NO [ ] SEE CONDITIONS [ ] CONDITIONS OF APPROVAL: RISK MANAGER (619) 336-4370 I've reviewed the application for the proposed use and note that the event will be held entirely on private property_ There does not appear to be any liability exposure on the part of the City in terms of street closures, impact to traffic, vendors or facilities. Although technically, insurance is not required for this event, which is entirely on private property, the certificate of insurance provided includes all required coverages. The WC coverage will expire prior to the event and I assume it will be renewed as this is an ongoing business. There is no need to request an additional insured endorsement. I have no objection to the proposed use. PUBLIC WORKS (619) 336-4593 Public Works Department staff has reviewed the application for subject Temporary Use Permit (TUP) and recommends approval with no involvement by Public Works. Please Note: The applicant is not requesting use of the City stage or PA system. Therefore, the PA system and/or the stage will not be provided. Thank you for the opportunity to comment on this TUP. Please let me know if you need any other information. FIRE (619) 336-4550 1) Access to Seafood City and surrounding businesses to be maintained at all times. Access to Fire Department connections for fire sprinkler systems, standpipes, etc. must be clear and unobstructed. 2) Fire Department access into and through the booth areas arc to be maintained at all times. Fire apparatus access roads shall have an unobstructed width of not less than 20 feet and an unobstructed vertical clearance of not less than 13 feet 6 inches. 3) Fire Hydrants shall not be blocked or obstructed. 4) Participants on foot are to move immediately to the sidewalk upon approach of emergency vehicle(s). 5) Vehicles in roadway are to move immediately to the right upon approach of emergency vehicle(s). Provide a 2A:10BC fire extinguisher at stage. Extinguisher to be mounted in a visible location between 3'h` to 5' from the floor to the top of the extinguisher. Maximum travel distance from an extinguisher shall not be more than 75 feet travel distance. 7) A fire safety inspection is to be conducted by the Fire Department prior to operations of the competition to include all booths, roadways and stage area. 8) Required inspections taking place, after hours, holidays, and weekends will be assessed a minimum of one hundred ($100.00) dollars. 9) Fees must be paid to the Fire Department Administration Office prior to event occurrence. 10) Any electrical power used is to be properly grounded and approved. Extension cords shall be used as "Temporary Wiring Only". 1 I) If tents or canopies are used, tents having an area in excess of 200 square feet and or canopies in excess of 400 square feet or multiple tents and or canopies placed together equaling or greater than the above stated areas are to be used, they shall be flame-retardant treated. An approved State Fire Marshal seal shall be attached. 12) A twelve foot separation distance must be maintained between tents and canopies. A permit from the Fire Department must be obtained. Permit fee is three hundred and forty nine ($349.00) dollars. 13) Fees must be paid to the Fire Department Administration Office prior to event occurrence. 14) First Aid will be provided by Filipino Nurses Association. 15) Fees can only be waived by City Council. Type of Event: ,/Public Concert Parade Motion Picture Fair Demonstration Grand Opening Festival Circus Other ✓Community Event Block Party Event Title: j V-.1 O 1 �'la,Q,t �(fM.a. ilO�hOt„tkt C .--trt Q ti"00 t . ble `64 i Yk1 C-. cxt qj ►q V Event Location: Aan,e„o� C„ert Quq ""-\' tr.kt — Ctw A'4'Na Event Date(s): From si 24 to s-�2u G Total Anticipated Attendance: 300 fi fr): a cf-c�L Month/Day/Year (/00 Participants) (tea '` Spectators) Actual Event Hours: (e) m m to Setup/assembly/construction Date: 10 an� e-a_ z i q 1.14 I0i 1:300 arnStarl time: 1 ieC . Please describe the scope of your setup/assembly work (specific details): 44-0i - t ag,. ft_ Aid -144 , v> dt p - Dismantle Date: 1 l-q" Completion Time: J ami rn 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. n A Sponsoring Organization: i& • ' ' yyNai- � ✓ For Profit ++++,% ! ; CO-rt.,‘. Not -for -Profit Chief Officer of Organization (Na e) iib.tc 4Q,1n-C,41 [t3 f -amyl-- Applicant (Name): /S.t t,4Q, . (C[d.O.d Address: U- 0- Y s m C- Cf 9 i g-S-0 Daytime Phone: (i) 4 11- 61 ening Phone: ((el goqs k-1960 Fax: ((, j1 4'7) - (O . Contact Person "on site" day of the event: S LAAA.41 d-L.LoS Set Pager/Cellular: 1 Sal -44100 NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS 1 Is your organization a "Tax Exempt, nonprofit" organization? YES t/ NO Are admission, entry, vendor or participant fees required? YES V'NO If YES, please explain the purpose and provide amount(s): -1-`1A 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. c 11'° �Z/Y> -� L 7-2-1-14-&-C-11-24- 7-t 2, -0114 4"- c • ri �� oA C--r"-e... 4 L�. a t rt p i -Ct �1 " rN CJ 9 -(� ,cci--ems TINA j2Q.o./) ry t d-e G-CL&n..&O a Ar` iiezr`et/n,-1 ('k V m-. , u .. a L dAA, -c c. �i.(1�>'. Zv-[ -11 1.-14)-treILL . 'h4"_CM// LY-r1_i G s a_ YES V NO If the event involves the sale of cars, will the cars come exclusively from National City car dealers? if NO, list any additional dealers involved in the sale: YES NO Does the event involve the sale or use of alcoholic beverages? ✓ YES NO Will items or services be sold at the event? If yes, please describe: YES NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. JYES NO Does the event involve the use of tents or canopies? If YES: Number of tent/canopies f-q- Sizes 10 X f u 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? YES NO Does the event involve a moving route of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. 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: Please describe your procedures for both Crowd Control and Internal Security t�,it� BIt 4030-4 1/ 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: ,46t QsA x Security Director (Name): Phone: Y YES NO Is this a night event? If YES, please state how the event and surrounding area will be illuminated to ensure safety of the participants and spectators: Th4; IAA A AlYr.t d- r7�t hre lxI t at -Wrt Please indicate what arrangement you have made for providing First Aid Staffing and Equipment. l tl £ 1 Vt 1 l n. tl�lxwnl/ Q �,-OO ji' Cr.A. tyi��.. A ch Cik Please describe your Accessibility Plan for access at your event by individuals with disabilities: w e 'D,t yrva(A_ ,Q tom -;-it i L e (ate` cL t z Please provide a detailed description of your PARKING plan:-��-D wt-f t -% 'C1z v U`"e Please describe your plan for DISABLED PARKING: Revised 08/10/05 Please describe your plans to notify all residents, businesses and churches impacted by the event I f/v� -r rtR t try GHQ e� �a q�lAtMtS NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. %/YES NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: Number of Bands: p > " ,—,k Type of Music: � U� � YES NO Will sound amplification be used? If YES, please indicate: -d aa`1&C-c `C"' 41� Start time: 9 pm Finish Time am/pm /YES NO Will sound checks be conducted prior to the event? If YES, please indicate: Start time: am/pm Finish Time am/pm Please describe the sound equipment that will be used for your event (7 J 1.rn-% YES V NO Fireworks, rockets, or other pyrotechnics? If YES, please describe: YES NO Any signs, banners, decorations, special lighting? If YES, please describe: cd�,ee a LI-12)16 Event: For Office 'Use Only Department Date Approved? Yes No Initial Specific Conditions of Approval Council Meeting Date: Approved: Yes No Vote: Kathleen Trees, Director Building & Safety Department 6 City of National City PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION AGREEMENT Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit. C#�A-, Cit l-6U 4-12"^r422 Organization Person in Charge of Activity Address D C Telephone rn C- cA 9 / 9s� Co 11) - J-i 6 Date(s) of Use ` , 02 oo 9 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. JW QA- djL f a t S nature of Applicant Official Title Dal For Office Use Only Certificate of Insurance Approved Date 7 REQUEST FOR WAIVER OF FE S Non-profit organizations, which meet the criteria on pag• of the instructions, will be considered for a waiver. If you would like to reque a waiver of the processing fees, please complete the questionnaire . • low. 1. Is the event for which the TUP is sough sponsored by a non-profit organization? Yes (proceed to Question 2) No (Please sign the form a . submit it with the TUP Application) 2. Please state the name and ty • e of organization sponsoring the event for which the TUP is sough and then proceed to Question 3. Name of the sponsoring • ganization Type of Organization (Service Club, Church, Social S ice Agency, etc.) 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) No (Pleas sign the form and submit it with the TUP Applation) 4. Will the proc eds provide a direct financial benefit to an individual who reside in or is employed in the city, and who is in dire financial need due t• health reasons or a death in the family? Yes Please provide an explanation and details. (Please proceed to Question 5) 8 5. Will the proceeds provide a direct financial benefit to city government such as the generation of sales tax? Yes (Please provide an explanation and details. Vav ,ct --20 2A_ P--.at t.. t( --e 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? A Yes Year funds were received: Funds were used to: No (P lease sign the form and submit it with the TUP Application) Signature Date 9 1\ ACORD,. CERTIFICATE OF LIABILITY INSURANCE UCER (619) 683-9990 FAX: (619) 683-9999 chael Ehrenfeld Company 2655 Camino Del Rio North #200 San Diego CA 92108 INSURED Fortune Management Company, Inc. Fortune Commercial Corp./Seafood City 2883 Surveyor Street Pomona CA 91768-3251 OATE (MY/DiWYYY) 7/20/2009 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 INSURER A Argonaut Great Central INSURER B. Springfield Insurance INSURER G NAIC # INSURER D INSURER E' (3VFRAGES THE POLICIES OF INSURANCE LISTED. BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD. INDICATED. NOTVNTHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POUCIES DESCRIBED HEREIN I5 SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS ACLGQFPATFJ INSR IMITS TYPE OF INSURANCE POUCY POUCY NUMBER EFFEcmE GATE (/AM/DO/VY' M POLICY EXPIRATION DATE (MINDIN 1YI LIMITS LTR g(anp Item It A GENERAL X LIABILITY COMMERCIAL GENERALLIABILITY ET4915148604 6/3/2009 EACH OCCURRENCE $ 1,000,000 DAMAGE TO RENTED PREMISES CEAxumencel e 300,000 6/3/2010 MEDEXP(Any one [toner) s Excluded 1CLAPASMADE © OCCUR PERSONAI A ADV INJURY 8 1,000,000 X $1, 000 Dead GENERAL AGGREGATE S 6,000,000 PRODUCTS - COMP/OP AGG S 2,000,000 AGGREGATE LIMB APPLIES PER "GGEENL A AUTOMOBILE POLICY UABIUTY ANY AUTO ALL OWNED AUTOS SCHELEDAUTOS OU HIRED AUTOS NON -OWNED AUTOS 8A915148604 6/3/2009 6/3/2010 COMBINED SINGLE UNIT (Ea aside 1) S 1,000,000 __ X BODILY INJURY t�I II $ _ X BODILY INJURY (Per acaQenl) X PROPERTY DAMAGE (Per emdent) $ GARAGE UABIUTY ANY AUTO AUTO ONLY - EA ACCIDENT S OTHER THAN EA ACC S AUTO ONLY AGO $ A EXCESS/UMBRELLA LIABILITY uMn915148604 6/3/2009 6/3/2010 EACH OCCURRENCE 8 10,000,000 AGGREGATE $ 10,000,000 OCCUR CLAIMS MADE S _JDEDIJCTIE.E $ X B WORKERS ANPLOYEI1 ANY OFFICEHIMEMBEREXCLUDED7 ayes. PROPRIETORIEXCLU dosenbe RETENTION 510,000 COMTE/ARON AND LABILITY RDEXECUTNE L de. wc0173306 12/1/2008 12/1/2009 ` I X I TOAYSi lM rs l 1 ER E.L. EACH ACCIDENT S 1, 000, 000 E.L. DISEASE-EAEMPLOYEE S 1,000, 000 E L DISEASE - POLICY L MIT $ 1,000,000 S SPECIAL PROVISIONS below OTHER DESCRIPTION Certificate operations subject •10 OP OPERATIONS/LOCATIONSNEHICLESIEXCtUSION5 Bolder is named as of the Insured with to the policy terms, conditions days notice of cancellation ADDED BY ENDORSEMENT/SPECIAL PROVISIONS Additional Insured as respects to Comm•1 General Liability, but limited to the Respect to: Filipiana Mexicana, 17th annual, to be held September 26, 2009, and always and exclusions per endorsement.of remium. only required in the event of non-payment p CERTIFICATE HOLDER Pacific Castle Bay Plaza LLC Pacific Castle Management, Inc. 2601 Main St. #900 Irvine, CA 92614 SHOULD ANY OF THE ABOVE DESCRIBED POUCIES BE CANCELLED BEFORE THE EXPIRATION GATE THEREOF, THE ISBUINO INSURER WILL ENOEAVOR TO MAIL *30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO 90 SHALL IMPOSE NO OBLIGATION OR UAOIUTY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORRDEEO REPRESENTATIVE Jim Eggert/TONI ACORD 25 (2001/081 INS025 (OM) aaa ® ACORD CORPORATION 1988 Pagel 012 I ACORD CERTIFICATE OF LIABILITY INSURANCE 000CER (619) 683-9990 FAX: (619) 683-9999 ichael Ehrenfeld Company 2655 Camino Del Rio North #200 San Diego CA 92108 INSURED Fortune Management Company, Inc. Fortune Commercial Corp./Seafood City 2883 Surveyor Street Pomona CA 91768-3251 DATE IMMRIOIYYYY) 7/20/2009 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. INSURERSAFFORDING COVERAGE NAIC # INSURER A Argonaut Great Central INSURER 0-- Springfield Insurance INSURER C INSURER D INSURER E oVERASitO THE POLICIES OF INSURANCE LISTED BELOW REQUIREMENT, TERM OR CONDITION OF ANY THE INSURANCE AFFORDED BY THE POLICIES AGGREGATE LIMITS SHOWN MAY HAVE DIE 4 HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES REDUCED BY PAID CLAIMS MLR ADOL TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MMIDDTYY) POUCY EXPIRATION DATE IMYI MfDDIY ITS LIMITS JNSRII EACH OCCURRENCE 9 1,000,000 GENERAL X LIABILITY DAMAGERENTED DAMAGNTInlultel 7 300,000 COMMERCIAL GENERAL LIABILITY ril FM915148604 6/3/2009 6/3/2010 MEDE/IP(Any OroPelvml s Excluded A C(AMSMADE OCCUR PERSONAL AAOV INJURY s 1,000,000 X 51,000 Ded. GENERAL AGGREGATE 9 5,000,000 PRODUCTS - COMPLQPAGG 9 2,000,000 GGEENL AGGREGATE LIMN APPLIES PER X' POLICY n PRO I {-1 tOC AUTOMOBILE LIABILITY t COMBINED SINGLE LIMIT (Ea awde:n) a 1,000,000 A X ANY AUTO ALL OWNED AUTOS BA915148604 6/3/2009 6/3/2010 BODILY INJURY (Pm Ramon) X S SCHEDULED AUTOS BODILY INJURY (Per accudlnt) X N NON -OWNED AUTOS PROPERTY DAMAGE 3 (P0! aetidant) AUTO ONLY - EA ACCIDENT 9 GARAGE WBIUTY OTHER THAN CARGO T ANY AUTO AUTO ONLY ACC EACH OCCURRENCE } 10,000,000 EJLCESSNMBRELLA LIABILITY AGGREGATE s 10,000,000 OCCUR l I CLAIMS MADE 6/3/2009 6/3/2010 9 A DEDUCTIBLE X UMB915148604 s BETE NngN y10,000 X C STATU- O- It.RY I IMRS I I FRTH B WORKERS COMPENSATION AND EMPLOIERS' LIABILITY E t EACH ACCIDENT 19 1,000,000 ANY PROPRIETORIPARTNERIEXECUTNE 12/1/2008 12/1/2009 EL DISEASE - EA EMP'.0YEE 9 1,000,000 OFFICER,MEMBER EXCLUDED? if yes destnbe %rear WC0173306 E L DISEASE. - VOLICY LIMITs 1,000,000 S SPECIAL PROVISIONS oe» .. OTHER DESCRIPTION Certificate operations always required OP OPERATIONSILOCATIONSNEHICLESIEXCLUSIONS ADDED BY ENDORBEMENTISPECIAL PRONSIONS Bolder is named as Additional Insured as respects to Comm'l General Liability, but limited to the of the Insured with Respect to:Fiesta Filipino Mexican to be held Saturday September 26th, 2009, and subject to the policy terms, conditions and exclusions per endorsement . *10 days notice of cancollation only in the event of non-payment of premium. I CERTIFICATE HOLDER City of National City 1243 National City Blvd_ National City, CA 91950 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL * 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT. BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER,ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE Jim Eggert/TONI ACORD 25 (2001108) INS025 (o108) osa ® ACORD CORPORATION 1988 Page I O11 City of National City, California COUNCIL AGENDA STATEMENT IEETING DATE August 18, 2009 AGENDA ITEM NO. 22 ITEM TITLE TEMPORARY USE PERMIT — Pumpkin Station hosted by Pinery Christmas Trees at Plaza Bonita from September 25, 2009 to October 31, 2009 with no waiver of fees. PREPARED BY Vianey Rolon, 336-4364 DEPARTMENT Neighborhood Services Division EXPLANATION This is a request from Pinery Christmas Trees to host the annual Pumpkin Station at Plaza Bonita Mall from September 25, 2009 to October 31, 2009. Daily hours will be from 10 a.m. to 9 p.m. This event will include children's rides, a boat ride, games, popcorn, sodas, a petting booth, as well as the sale of pumpkins. Free entertainment will be provided on Saturday's and Sunday's, including magicians, ventriloquists, jugglers, and a puppet show. Six (6) canopies will be on site. Halogen lighting, string lighting, and light towers will provide illumination throughout the evenings. First aid kits are located on location, as well. Private security will be present during high -traffic periods each day. Environmental Review X N/A Financial Statement Approved By: Finance Director The City has incurred $237.00 for processing the TUP, plus $200.00 for Fire permits and inspection. Total fees are $437.00. Account No. STAFF RECOMMENDATION Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval with no waiver of fees. BOARD / COMMISSION RECOMMENDATION N/A l ATTACHMENTS ( Listed Below) Resolution No. Application for a Temporary Use Permit with recommended approvals and conditions of approval. A-200 (9/99) CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DIVISION APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDED APPROVALS AND CONDITIONS OF APPROVAL SPONSORING ORGANIZATION: Pinery Christmas Trees EVENT: Pumpkin Station DATE OF EVENT: September 25 to October 31, 2009 TIME OF EVENT: 10 a.m. to 9 p.m. daily APPROVALS: PLANNING/BUILDING YES [ x ] NO [ 1 SEE CONDITIONS [ ] COMMUNITY SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ x ] ENGINEERING YES [ x ] NO [ ] SEE CONDITIONS [ ] PUBLIC WORKS YES [ x ] NO [ ] SEE CONDITIONS [ ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ ] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ ] CONDITIONS OF APPROVAL: RISK MANAGER I've reviewed the application for the proposed repeat use and note that the event will be held on privately owned property at Plaza Bonita. The general manager for Plaza Bonita has authorized the use in writing and the Hold Harmless Agreement in the TUP has been signed. In the past, the agreement with Westfield required the applicant to maintain sufficient liability insurance for the event, which has been held in the same location for 7 years straight. I do not see any reference to liability insurance in the current application and trust that Westfield Plaza Bonita, the private landowner, is requiring sufficient coverage. Absent this concern, I have no objections to the application. Let me know if you have any questions FIRE (619) 336-4550 Stipulations required by the Fire Department for this event are as follows: 1) Access to the area to be maintained at all times. 2) Fire Department access into and through the booth areas are to be maintained at all times. Fire apparatus access roads shall have an unobstructed width of not less than 20 feet and an unobstructed vertical clearance of not less than 13 feet 6 inches. 3) Participants on foot are to move immediately to the sidewalk upon approach of emergency vehicle(s). 4) Vehicles in roadway are to move immediately to the right upon approach of emergency vehicle(s). 5) Fire hydrants and fire department connections shall not be blocked or obstructed at any time. 6) Exit to be maintained in an obstructed manner at all times. Exit way to be clear of all obstructions. 7) Exits to he posted - EXIT. 8) No open flames or smoking inside or adjacent to the tent/canopy. Signs to be posted - NO SMOKING. 9) Extinguishers to be mounted in a visible location between 31h' to 5' from the floor to the top of the extinguisher_ Maximum travel distance from an extinguisher shall not be more than 75 feet travel distance. All fire extinguishers to have a current State Fire Marshal Tag attached. Extinguishers shall be mounted in conspicuous area inside tent or canopy. Please see attached example. 10 Internal combustion power sources that may be used for inflatable rides shall be of adequate capacity to permit uninterrupted operation during normal operating hours. Refueling shall be conducted only when the ride is not in use. 11 Internal combustion power sources shall be isolated from contact with the public by either physical guards, fencing or an enclosure. Internal combustion power shall be at least 20 feet away from the ride. 12 Automobiles and other internal combustion engines shall be a minimum distance of twenty feet (20) from all tents and canopies. 13 Any electrical power used is to be properly grounded and approved. Extension cords shall be used as "temporary Wiring" only. 14 If tents or canopies are used, tents having an area in excess of 200square feet and or canopies in excess of 400 square feet or multiple tents and or canopies placed together equaling or greater than the above stated areas, are to be used, they shall be flame- retardant treated with an approved State Fire Marshal seal attached. A ten feet separation distance must be maintained between tents and canopies. A permit from the Fire Department must be obtained_ Cooking shall not be permitted under tents or canopies unless the tents or canopies meet "State Fire Marshal approval for cooking. Certificate of State Fire Marshal flame spread shall be provided to the National City Fire Department if applicable. Canopies: 0 - 400 sf - $0 401 - 500 sf - $250.00 501-600sf- $300.00 601 - 700 sf - $400.00 Tents: 0 -200 sf - $200.00 201 - (+) sf - $400.00 15 Concession stands utilized for cooking shall have a minimum of 10 feet of clearance on two sides and shall not be located within 10 feet of amusement rides or devices 16 All cooking booths or areas to have one 2A:1 OBC. If grease or oil is used in cooking a 40:BC or class "K" fire extinguisher will be required. All fire extinguishers to have a current State Fire Marshal Tag attached. 17 A fire safety inspection is to be conducted by the Fire Department prior to operations of the carnival to include all rides, cooking areas, game booths, etc. 18 Fees can only be waived by City Council. 19 First Aid will be provided by organization 20 Fees can only be waived by City Council. PUBLIC WORKS Public Works Department staff has reviewed the application for subject Temporary Use Permit (TUP) and recommends approval: Street Division No involvement Parks Division No involvement Facilities Division No involvement Thank you for the opportunity to comment on this TUP. Please let me know if you need any other information. Type of Event: Public Concert Parade Motion Picture Event Title: Event Location: Fair Demons' ralion Grand Opening Festival Circus Other Event Date(s): From / oZ,- to 161 3 / Total Anticipated Attendance: ( Participants) ( Spectators) Actual Event Hours: /0 C m to arr Setup/assembly/construction Date: �' cf Start time: OWM S Please describe the scope of your setup/assembly work (specific details): .,Z 1 fA4Z f co.e-1" (p £ ri cal '¢ a)a-7 e i^ N Dismantle Date: //' /S Completion Time: • am pm !'`X9 List any street(s) requiring closure as a result of this event. Include street name(s), daydJand time of closing and day and time of reopening. Community Event Block Party Month/Day/Year ene Sponsoring Organization: Pi4.erf/ a )10,3? 795 rit,ec, s kFor Profit Not-for-Profit Chief Officer of Organization Name) p/ jj 4 4 V 2..s 'eve„.% Applicant (Name): Organization 7 1-/• rS 'e vj✓e-- Address: /104(d 27/e4fe, /// j /jii gQ nQ f 475 . 7 Z1.3I Daytime Phone: (� )s�L •��6(Lvening Phone: (. ) ag01/Q Fax: Or 59 Gr 7I Contact Person "on site" day of the event: del �ps�®€9/,Q//1'e- Pager/Cellular: 6:5 py- tPb (" /7 1!)/ NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS Is your organization a "Tax Exempt, nonprofit" organization? Are admission, entry, vendor or participant fees required? If YES, please explain (he purpose and provide amount(s): YES )C NO YES y NO $ 154 a00 Estimated Gross Receipts including ticket, product and sponsorship sales from this event. $ 1 ZSYODO 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. 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 )6NO Does the event involve the sale or use of alcoholic beverages? )(YES NO Will items or services be sold at the event? If yes, please describe: 1014073 1, Ci r t dve•, r t th S J Q Aenta,.g©ditdt f7Cer,✓ Does the event involve a moving route of any kind along streets, sidewalks or !� highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. YES 'NO NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event_ NODoes the event involve the use of tents or canopies? If YES: Number of tenUcanopies S sizes /- 3c f31)/ - At X 2-O 3 - ZtX469 NOTE: A separate Fire Department permit is required ror tents or cano'ies. YES X'NO Will the event involve the use of the City stage or PA system? In addition to the route map required above, please attach a diagram showing the overall layout and set-up locations for the following items: Alcoholic and Nonalcoholic Concession and/or Beer Garden areas. Food Concession and/or Food Preparation areas Please describe how food will be served at the event: pp a y*/ $OQ/G.. If you intend to cook food in the event area please specify the method: GAS ELECTRIC CHARCOAL _ OTHER (Specify): Portable and/or Permanent Toile itities 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: O Trash containers with lids: Describe your plan for clean-up and removal of waste and garbage during nd after the event- 1C-k Ir. 4 �:r:, sitze. a. s , e� .e4% Please describe your proceduresdfor both Crowd Control and Internal Security: We lee f } J va f� .Q CM ' I 1-"Y 9 t i vds cl c ri r>t 5 6 k S t/ per; e ad s - A L5o i f. L.��.• e rnk. IL ,S.ec ri y YES, NO Have you hired any Professional Security organization to handle security arrangements for this event? If YES, please list: XYES Security Organization: Security Organization Address: Security Director (Name): Phone: NO Is this a night event? If YES, please state how the event and surrounding area will Ruminated to erysure safety of the participants and spectators e f S,P f a-Ley_R r, S / 57��-.rc t-i fc 17 7s tM Please - dicaj� what arrange nt yot..1,bave made forAroviiing F,ir5i Ail Staffing` 4nd Eguipme t. / -(DNA GA,//ar) Please escribe your Accessibiyty PI for access at your event by individuals with disab� ies: J li�jG[JlJ/4 ri L} _1, '�.cY.! a r-Q - rap Ple e provide a detailed des ip on of your PARKING plan: d, Clyv t e fra r a vital r, 5 IJLVek Laa-16 t-ea hll'' PLa3i � Jj j �� Please describe your plan for DISABLED PARKING: .ems �,1D✓e- 4 Please describe your plans to notify all residents, businesses and churches impacted by the event: rolrot NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. YES O Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: Number of Bands: Type of Music: YES NO Will sound amplification be used? if YES, please indicate: Start time: am/pm Finish Time am/pm YESXNO Will sound checks be conducted prior to the event? It YES, please indicate: Start time: am/'pm Finish Time am/pm Please describe the sound equipment that will be used for your event: YES NO Fireworks, rockets, or other pyrotechnics? If YES, please describe: ,YES _ NO Any signs, banners, decorations, special lighting? 1f YES, please describe: Revised 08/10/05 5 Event: for Office Ilse On(y Department Date Approved? Yes No Initial Specific Conditions of Approval Council Meeting Date: Approved: Yes No Vote: Kathleen Trees, Director Building & Safety Department 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 Address Telephone Date(s) of Use HOLD HARMLESS AGREEMENT As a condition of the issuance of a temporary use permit to conduct its activities on public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and 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 und9/the permit by the permittee or its agents, employees or contractors. Signature . ` •.licant cL.e n± Official Title Date For Office Use Only Certificate of Insurance Approved Date 7 REQUEST FOR WAIVER OF FE S Non-profit organizations, which meet the criteria on pag- of the instructions, will be considered for a waiver. If you would like to reque a waiver of the processing fees, please complete the questionnaire . -low. 1. Is the event for which the TUP is sough sponsored by a non-profit organization? Yes (proceed to Question 2 No (Please sign the form a . submit it with the TUP Application) 2. Please state the name and ty•e of organization sponsoring the event for which the TUP is sough and then proceed to Question 3. Name of the sponsoring . ganization Type of Organization (Service Club, Church, Social S ice Agency, etc.) 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) No (Pleas sign the form and submit it with the TUP Appl' ation) 4. Will the proc eds provide a direct financial benefit to an individual who reside in or is employed in the city, and who is in dire financial need due t. health reasons or a death in the family? Yes Please provide an explanation and details. (Please proceed to Question 5) 8 5. Will the proceeds provide a direct financial benefit to city government such as the generation of sales tax? Yes (Please provide an explanation and details_ No (Please proceed to Question 6) 6. Will the proceeds provide a direct financial benefit to a service club, social services agency, or other secular non-profit organization located within the city such as Kiwanis, Rotary, Lions, Boys and Girls Club? Yes (Please provide an explanation and details. No (Please proceed to Question 7) 7. Will the proceeds provide a direct financial benefit to an organization, which has been the direct recipient of Community Development Block Grant (CDBG) funding? Yes Year funds were received: Funds were used to: No (P lease sign the form and submit it with the TUP Application) Signature Date 9 Pumpkin Station Bonita Plaza Shopping Center Temporary Use Permit Application Description of Event: Pumpkin Station is a pumpkin patch and a children's carnival combined. We cater to children age 2-9. We offer numerous rides including a boat ride, car ride, swing ride, bumble bee swing ride, lil' toot ride, inflatable slide, inflatable pumpkin jump, and petting zoo. Pumpkin Station also provides free entertainment on Saturday & Sunday's which include magicians, ventriloquist, jugglers, live animal show and puppet show (3 shows per day each weekend). Also available are 4 different games for the children, Turtle Fishing, Pumpkin Toss, Tic Tac Toe, and Ping Pong Toss with a winner every time. Pumpkin Station also offers Group Packages to local schools, day care centers and other children groups. Pumpkins We offer a very large selection of pumpkins from 1 # size to Bodacious Pumpkins weighing over 150#. We also offer bales of straw, corn stalks, gourds of all sizes, and other holiday decorating items. Si,.nage We have 2 signs — on at our entrance (4' X 8') and one on our storage trailer (10' X 40'). Experience This is our 1Ph year of experience operating Pumpkin Station —1 year at Plaza Camino Real in Carlsbad, 6 years at Mission Valley Shopping Center in San Diego and the last 7 years at Bonita Plaza Shopping Center 2 year at Parkway Plaza in El Cajon and 2 years at the Del Mar Fairgrounds. c� MKT CdB-Pc)KApKI,-) c,T( ,i . l'JyV c'.- C)fv y t i-kr,- �i Yestfiekf Plaza Bonita • June 25, 2009 City of National City Building & Safety Department 1243 National City Boulevard National City, California 91950-4301 Re: Temporary Use Permit Pumpkin Station Westfield Plaza Bonita I_)car Building Department: 3030 Plaza Bonita Road #2075 National City, CA 91950 T 619.267.2850 F 619.472.5652 I hereby authorize Norm Osborne, acting as representative of Pinery Christmas Trees, Inc_, to operate a business known as Pumpkin Station in parking lot #7 at Westfield Plaza Bonita during the dates of September 4, 2009 through November 5, 2009. Set-up will begin on approximately September 4th, opening around the 27', closing October 31, 2009, breakdown through approximately November 5, 2009. Norm Osborne has permission to install temporary power to poles in parking lot #7 to provide power during the Pumpkin Station occupancy if adequate power is not already in place. Norm Osborne will obtain all necessary permits from National City for occupancy at Westfield Plaza Bonita. Please call me 1 if you have any additional questions. Thank you. Sincerely, Ryan Pei CSM General Manager Westfield Plaza Bonita Cc: Retailer's File COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT National City, California IEETING DATE: Aug 18, 2009 AGENDA ITEM Na 23 ITEM TITLE: Authorize the reimbursement of Community Development Commission expenditures in the amount of $33,664.24 to the City of National City for the period of 07/15/09 through 07/21/09 PREPARED BY: Jeanette Ladrido DEPARTMENT Finance Finance Director (619) 336-4331 EXPLANATION: Effective July 1, 2008, the Community Development Commission's fiscal operations have been merged with the City of National City. In order to streamline the payment process, the City of National City pays for all ex- penditures for the CDC. Attached is a detailed listing of all CDC warrants paid for with the City General Funds. Staff requests ap- proval of the reimbursement of CDC activity. J Environmental Review N/A Financial Statement Approve the reimbursement of funds to the City of National City in the amount of $33,664.24 qiPk J STAFF RECOMMENDATION Accept and File. BOARD/COMMISSION RECOMMENDATION N/A fTACHMENTS (Listed elow) Warrants for the period the period of 07/15/09 through 07/21/09 • COMMUNITY DEVELOPMENT COMMISSION WARRANT REGISTER # 3 7/21/2009 PAYEE DESCRIPTION CHK NO DATE AMOUNT KEYSER MARSTON ASSOC CONSULTING FOR GATEWAY SHOPPING CE 228242 7/21/09 11,489.38 KLEINFELDER, INC. TO PROVIDE CONSTRUCTION MATERIAL 228243 7/21/09 3,691.20 WADE & ASSOCIATES BAY MARINA WIDENINING 228244 7/21/09 5,752.00 SECTION 8 SECTION 8 HAPS PAYMENTS Start Date End Date 7/15/2009 7/21/2009 A/P Total S 20,932.58 12, 731.66 GRAND TOTAL $ 33,664.24 INCORPORATED COMMUNITY DEVELOPMENT COMMISSION Warrant Register # 3 7/21/2009 261 CDC DEBT SERVICE FUND 502 SECTION 8 FUND 505 HOME FUND 511 TAX INCREMENT FUND 522 LOW/MODERATE HOUSING FUND 12, 731.66 20,932.58 33,664.24 COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT National City, California EETING DATE: Aug 18, 2009 AGENDA ITEM NO. 24 ITEM TITLE: Authorize the reimbursement of Community Development Commission expenditures in the amount of $706,870.09 to the City of National City for the period of 07/22/09 through 07/28/09 PREPARED BY: Jeanette Ladrido, Finance Director EXPLANATION: DEPARTMENT Finance (619) 336-4331 Effective July 1, 2008, the Community Development Commission's fiscal operations have been merged with the City of National City. In order to streamline the payment process, the City of National City pays for all ex- penditures for the CDC. Attached is a detailed listing of all CDC warrants paid for with the City General Funds. Staff requests ap- proval of the reimbursement of CDC activity. r Environmental Review N/A Financial Statement Approve the reimbursement of funds to the City of National City in the amount of $706,870.09 J STAFF RECOMMENDATION Accept and File. BOARD/COMMISSION RECOMMENDATION N/A J TACHMENTS (Listed Below Warrants for the period the period of 07/22/09 through 07/28/09 INCOR,PpnATV) COMMUNITY DEVELOPMENT COMMISSION WARRANT REGISTER # 4 7/28/2009 PAYEE CITY OF NATIONAL CITY COUNTY OF SAN DIEGO METROPOLITAN WATER DISTRICT NATIONAL ELEM SCHOOL DISTRICT SD COUNTY OFFICE OF EDUCATION SD COUNTY OFFICE OF EDUCATION SD COUNTY WATER AUTHORITY SOUTHWESTERN COMMUNITY COLLEGE SOUTHWESTERN COMMUNITY COLLEGE SWEETWATER UNION HS DISTRICT KLEINFELDER, INC. SAN DIEGO COUNTY RECORDER STAPLES ADVANTAGE WADE & ASSOCIATES CTION 8 ICTION 8 HAPS PAYMENTS PAYROLL Pay period Start Dale 15 6/30/2009 DESCRIPTION AB1290 TAX SHARING (FINAL DIST) FY09 AB1290 TAX SHARING (FINAL DIST) FY09 AB1290 TAX SHARING (FINAL DIST) FY09 AB1290 TAX SHARING (FINAL DIST) FY09 PASS THROUGH PAYMENT FY09 AB1290 TAX SHARING (FINAL DIST) FY09 AB1290 TAX SHARING (FINAL DIST) FY09 PASS THROUGH PAYMENT FY 09 AB1290 TAX SHARING (FINAL DIST) FY09 AB1290 TAX SHARING (FINAL DEST) FY09 HIGHLAND AVE COMPACTION TEST COSTS FOR RECONVEYANCE OF LOANS MOP 45704 OFFICE SUPPLIES - S8 PROJECT MANANGER - BAY MARINA Start Date 7/22/2009 End Date 7/13/2009 End Date 7/28/2009 Check Date 7/22/2009 CHK NO DATE AMOUNT 228256 7/28/09 847.00 228261 7/28/09 986.00 228295 7/28/09 19.00 228300 7/28/09 1,146.00 228317 7/28/09 312,168.00 228318 7/28/09 84.00 228319 7/28/09 17.00 228324 7/28/09 284,407.00 228325 7/28/09 189.00 228329 7/28/09 701.00 228339 7/28/09 14,634.50 228340 7/28/09 69.00 228341 7/28/09 76.20 228342 7/28/09 5,895.00 A/P Total $ 621,238.70 0.00 85,631.39 GRAND TOTAL $ 706,870.09 _).. CALIFORNIA tr i "4 INCORPORATE' COMMUNITY DEVELOPMENT COMMISSION Warrant Register # 4 7/28/2009 261 CDC DEBT SERVICE FUND 502 SECTION 8 FUND 505 HOME FUND 506 HOME LOAN PROGRAM FUND 511 TAX INCREMENT FUND 522 LOW/MODERATE HOUSING FUND 600, 564.00 20, 852.87 1,027.11 46.00 82,465.81 1,914.30 706,870.09 City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT MEETING DATE AUGUST 18, 2009 AGENDA ITEM NO. 25 ITEM TITLE: A resolution approving the Section 8 Management Assessment Program (SEMAP) for Fiscal Year ending June 30, 2009 and authorizing the submittal of the SEMAP to the U.S. Department of Housing and Urban Development. PREPARED BY Hermi Oliveria Housing Programs Manager (619) 336-4259 EXPLANATION Refer to Staff Recommendation Below. DEPARTMENT Community Development, Housing and Gra Section 8 Program Environmental Review X N/A Financial Statement N/A epig Account No STAFF RECOMMENDATION 1. ADOPT Resolution approving the Section 8 Management Assessment Program (SEMAP); and 2. AUTHORIZE the submittal of the SEMAP to the U.S. Department of Housing and Urban Development. BOARD / COMMISSION RECOMMENDATION Not applicable. ATTACHMENTS 1. Background Report 2. Resolution 3. SEMAP REPORT Resolution No. RESOLUTION NO. 2009 - RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY APPROVING THE SECTION 8 MANAGEMENT ASSESSMENT PROGRAM (SEMAP) FOR FISCAL YEAR ENDING JUNE 30, 2009; AND AUTHORIZING THE EXECUTIVE DIRECTOR TO SUBMIT THE ANNUAL SEMAP TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, on September 10, 1998, the U.S. Department of Housing and Urban Development (HUD) published its final rule for the Section 8 Management Assessment Program (SEMAP) which took effect on October 13, 1998; and, WHEREAS, SEMAP provides for the objective measurement of the performance of a Public Housing Agency (PHA) in key areas of the Section 8 Tenant - based Rental Assistance Program; and WHEREAS, the SEMAP requires a Public Housing Agency (PHA) who administers Section 8 Tenant -based Rental Assistance Programs to submit annually a SEMAP certification form. NOW, THEREFORE, BE IT RESOLVED THAT the Community Development Commission Board hereby approves the Section 8 Management Assessment Program (SEMAP); and authorizes the Executive Director to submit the SEMAP certification form to the U.S. Department of Housing and Urban Development. PASSED and ADOPTED this 18th day of August, 2009. Ron Morrison, Chairman ATTEST: Bradford Raulston, Secretary APPROVED AS TO FORM: George H. Eiser, Ill City -CDC Attorney Community Development Commission Of the City of National City August 18, 2009 AGENDA ITEM NO. _ Background Report: On September 10, 1998, the U.S. Department of Housing and Urban Development (HUD) published its final rule for the Section 8 Management Assessment Program (SEMAP), which took effect on October 13, 1998. SEMAP provides for the objective measurement of the performance of a Public Housing Agency (PHA) in key areas of the Section 8 Tenant -based Rental Assistance Program. SEMAP enables HUD to ensure program integrity and accountability identifying PHA management capabilities and deficiencies and by improving risk assessment to effectively target monitoring and program assistance. PHAs' can use SEMAP performance analysis to assess their own program operations. The SEMAP Indicators Report provides information on families participating in the Section 8 Housing Choice Voucher Program. The report is one of the several inputs used to derive a score and rating for PHAs as it relates to SEMAP certification. The SEMAP requires a PHA who administers Section 8 Tenant -based Rental Assistance Programs to submit annually a SEMAP certification form. On July 28, 2009 the Community Development Commission of National City (CDC) submitted its SEMAP certification report to HUD. The Section 8 Rental Assistance Program has a current lease -up rate of 100%. With National City's population of 63,000, there are 1064 low-income families that are currently receiving rental assistance through the program and 2,594 waiting to be assisted. To be eligible to the program, an applicant must either reside or work in the jurisdiction of the City of National City and be a very low-income household. In addition, applicants that are elderly, disabled, or families with dependent children are given a higher priority in the waiting list. Below is the breakdown of participants and applicants to the program as of August 1, 2009. RACE PARTICIPANTS APPLICANTS White 882 1967 Black/African American 78 214 American Indian / Alaska Native 5 16 Asian 93 355 Native Hawaiian / other Pacific Islander 6 42 TOTAL 1064 2594 ETHNICITY PARTICIPANTS APPLICANTS Hispanic 806 1793 Non Hispanic 258 801 TOTAL 1064 2594 Elderly 424 603 Disabled 222 599 Families with Children 418 1392 TOTAL 1064 2594 2 St MAY c:enincanon Herrni Oliveria (M98564) PIC Horne WASS Main PIC Main Logoff SEMAP LOGOFF HUD HOME PIH HOME Q & A SEARCH f INDEX E-MAIL WASS MAIN Reports I Submission List Summary Field Office: Housing Agency: Certification Profile Comments 9DPH LOS ANGELES HUB OFFICE CA116 National City PHA Fiscal Year End: 6/30/2009 OMB Approval No. 2577-0215 SEMAP CERTIFICATION (Page 1) Public reporting burden for this collection of information is estimated to average 12 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.This agency may not conduct or sponsor, and you are not required to respond to, a collection of information unless it displays a currently valid OMB control number. This collection of information is required by 24 CFR sec 985.101 which requires a Public Housing Agency (PHA) administering a Section 8 tenant -based assistance program to submit an annual SEMAP Certification within 60 days after the end of its fiscal year. The information from the PHA concems the performance of the PHA and provides assurance that there is no evidence of seriously deficient performance. HUD uses the information and other data to assess PHA management capabilities and deficiencies, and to assign an overall performance rating to the PHA. Responses are mandatory and the information collected does not lend itself to confidentiality. Check here if the PHA expends Tess than $300,000 a year in federal awards r Indicators 1 - 7 will not be rated if the PHA expends less than $300,000 a year in Federal awards and its Section 8 programs are not audited for compliance with regulations by an independent auditor. A PHA that expends less than $300,000 in Federal awards in a year must still complete the certification for these indicators. Performance Indicators 1 Selection from Waiting List (24 CFR 982.54(d)(1) and 982.204(a)) a. The HA has written policies in its administrative plan for selecting applicants from the waiting list. PHA Response Yes b. The PHA's quality control samples of applicants reaching the top of the waiting list and admissions show that at least 98% of the families in the samples were selected from the waiting list for admission in accordance with the PHA's policies and met the selection criteria that determined their places on the waiting list and their order of selection. PHA Response Yes 2 Reasonable Rent (24 CFR 982.4, 982.54(d)(15), 982.158(f)(7) and 982.507) a. The PHA has and implements a reasonable written method to determine and document for each unit leased that the rent to owner is reasonable based on current rents for comparable unassisted units (i) at the time of initial leasing, (ii) before any increase in the rent to owner, and (iii) at the HAP contract anniversary if there is a 5 percent decrease in the published FMR in effect 60 days before the HAP contract anniversary. The PHA's method takes into consideration the location, size, type, quality, and age of the program unit and of similar unassisted units and any amenities, housing services, maintenance or utilities provided by the https://pic.hud.gov/pic/semap/smpassessmentcertification.asp 7/28/2009 SF;MAY Certification owners. PHA Response Yes b. The PHA's quality control sample of tenant files for which a determination of reasonable rent was required to show that the PHA followed its written method to determine reasonable rent and documented its determination that the rent to owner is reasonable as required for (check one): PHA Response At least 98% of units sampled 3 Determination of Adjusted Income (24 CFR part 5, subpart F and 24 CFR 982.516) The PHA's quality control sample of tenant files show that at the time of admission and reexamination, the PHA properly obtained third party verification of adjusted income or documented why third party verification was not available; used the verified information in determining adjusted income; properly attributed allowances for expenses; and, where the family is responsible for utilities under the lease, the PHA used the appropriate utility allowances for the unit leased in determining the gross rent for (check one): PHA Response At least 90% of files sampled 4 Utility Allowance Schedule (24 CFR 982.517) The PHA maintains an up-to-date utility schedule. The PHA reviewed utility rate data that it obtained within the last 12 months, and adjusted its utility allowance schedule if there has been a change of 10% or more in a utility rate since the last time the utility allowance schedule was revised. PHA Response Yes 5 HQS Quality Control (24 CFR 982.405(b)) The PHA supervisor (or other qualified person) reinspected a sample of units during the PHA fiscal year, which met the minimum sample size required by HUD (see 24 CFR 985.2), for quality control of HQS inspections. The PHA supervisors reinspected sample was drawn from recently completed HQS inspections and represents a cross section of neighborhoods and the work of cross section of inspectors. PHA Response Yes 6 HQS Enforcement (24 CFR 982.404) The PHA's quality control sample of case files with failed HQS inspections shows that, for all cases sampled, any cited life -threatening HQS deficiencies were corrected within 24 hours from the inspection and, all other cited HQS deficiencies were corrected within no more than 30 calendar days from the inspection or any PHA -approved extension, or, if HQS deficiencies were not corrected within the required time frame, the PHA stopped housing assistance payments beginning no later than the first of the month following the correction period, or took prompt and vigorous action to enforce the family obligations for (check one): PHA Response At least 98% of cases sampled 7 Expanding Housing Opportunities. (24 CFR 982.54(d)(5), 982.153(b)(3) and (b)(4), 982.301(a) and 983.301(b)(4) and (b)(12)) Applies only to PHAs with jurisdiction in metropolitan FMR areas Check here if not applicable kff++o •//r.in bv,r) .r,cdr";rJomm.r Jo mrinoononmaotl 7t)RI1nno SEMAt' Uertillcatton 1 4GV J Vl ✓ a. The PHA has a written policy to encourage participation by owners of units outside areas of poverty or minority concentration which clearly delineates areas in its jurisdiction that the PHA considers areas of poverty or minority concentration, and which includes actions the PHA will take to encourage owner participation. PHA Response Not Applicable b. The PHA has documentation that shows that it took actions indicated in its written policy to encourage participation by owners outside areas of poverty and minority concentration. PHA Response Not Applicable c. The PHA has prepared maps that show various areas, both within and neighboring its jurisdiction, with housing opportunities outside areas of poverty and minority concentration; the PHA has assembled information about job opportunities, schools and services in these areas; and the PHA uses the maps and related information when briefing voucher holders. PHA Response Not Applicable d. The PHA's information packet for certificate and voucher holders contains either a list of owners who are willing to lease, or properties available for lease, under the voucher program, or a list of other organizations that will help families find units and the list includes properties or organizations that operate outside areas of poverty or minority concentration. PHA Response Not Applicable e. The PHA's information packet includes an explanation of how portability works and includes a list of neighboring PHAs with the name, address and telephone number of a portability contact person at each. PHA Response Not Applicable f. The PHA has analyzed whether voucher holders have experienced difficulties in finding housing outside areas of poverty or minority concentration and, where such difficulties were found, the PHA has considered whether it is appropriate to seek approval of exception payment standard amounts in any part of its jurisdiction and has sought HUD approval when necessary. PHA Response Not Applicable Page 1 of 2 Go to Comments https://pic.hud.gov/pic/semap/smpassessmentcertification.asp 7/28/2009 SEMAY Certincanon LOGOFF List Field Office: Hermi Oliveria Housing Agency: (M98564) PIIA Fiscal Year End: 6130/2009 HUD HOME PIH HOME Q & A SEARCH I INDEX E-MAIL WASS MAIN Reports Submission 1 Summary Certification Profile Comments 9DPH LOS ANGELES HUB OFFICE CA116 National City PIC Horne WASS Main PIC Main Logoff SEMAP CERTIFICATION (Page 2) SEMAP Performance Indicators 8 Payment Standards(24 CFR 982.503) The PHA has adopted current payment standards for the voucher program by unit size for each FMR area in the PHA jurisdiction and, if applicable, for each PHA -designated part of an FMR area, which do not exceed 110 percent of the current applicable FMR and which are not Tess than 90 percent of the current FMR (unless a lower percent is approved by HUD). (24 CFR 982.503) PHA ResponseYes FMR Area Name San Diego -Carlsbad -San Marcos FMR 1 of 1 Enter current FMRs and payment standards (PS) 0-BR FMR 1024 1-BR FMR 1168 2-BR FMR 1418 3-BR FMR 2067 4-BR FMR 2493 PS 922 PS 1052 PS 1277 PS 1861 PS 2244 If the PHA has jurisdiction in more than one FMR area, and/or if the PHA has established separate payment standards for a PHA -designated part of an FMR area, add similar FMR and payment standard comparisions for each FMR area and designated area. 9 Timely Annual Reexaminations(24 CFR 5.617) The PHA completes a reexamination for each participating family at least every 12 months.(24 CFR 5.617) PHA Response Yes 10 Correct Tenant Rent Calculations(24 CFR 982, Subpart K) The PHA correctly calculates tenant rent in the rental certificate program and the family rent to owner in the rental voucher program (24 CFR 982,Subpart K) PHA Response Yes 11 Pre -Contract HQS Inspections(24 CFR 982.305) Each newly leased unit passes HQS inspection before the beginning date of the assisted lease and HAP contract.(24 CFR 982.305) PHA Response Yes 12 Annual HQS Inspections(24 CFR 982.405(a)) The PHA inspects each unit under contract at least annually (24 CFR 982.405(a)) PHA Response Yes 13 Lease -Up The PHA executes assistance contracts on behalf of eligible families for the number of units that has been under budget for at least one year. The PHA executes assistance contracts on behalf of eligible families for the number of units that has been under budget for at least one year PHA Response Yes https://pic.hud.gov/pic/semap/smpassessmentcertificationcontd.asp 7/28/2009 SLMAI uerruication 14 Family Self -Sufficiency (24 CFR 984.105 and 984.305) 14a.Family Self -Sufficiency Enrollment. The PHA has enrolled families in FSS as required. Applies only to PHAs required to administer an FSS program. Check here if not applicable l a. Number of mandatory FSS slots (Count units funded under the FY 1992 FSS incentive awards and in FY 1993 and later through 10/20/1998. Exclude units funded in connection with Section 8 and Section 23 project -based contract terminations; public housing demolition, disposition and replacement; HUD multifamily property sales; prepaid or terminated mortgages under section 236 or section 221(d)(3); and Section 8 renewal funding. Subtract the number of families that successfully completed their contracts on or after 10/21/1998.) Or, Number of mandatory FSS slots under HUD -approved exception (If not applicable, leave blank) b. Number of FSS families currently enrolled c. Portability: If you are the initial PHA, enter the number of families currently enrolled in your FSS program, but who have moved under portability and whose Section 8 assistance is administered by another PHA Percent of FSS slots filled (b+c divided by a) (This is a nonenterable field. The system will calculate the percent when the user saves the page) 14b. Percent of FSS Participants with Escrow Account Balances.The PHA has made progress in supporting family self-sufficiency as measured by the percent of currently enrolled FSS families with escrow account balances.(24 CFR 9(34.305) Applies only to PHAs required to administer an FSS program Check here if not applicable l✓ PHA NA Response Portability: If you are the initial PHA, enter the number of families with FSS escrow accounts currently enrolled in your FSS program, but who have moved under portability and whose Section 8 assistance is administered by another PHA 15 Deconcentration Bonus The PHA is submitting with this certification data which show that : Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable (1) Half or more of all Section 8 families with children assisted by the PHA in its principal operating area resided in low poverty census tracts at the end of the last PHA FY; (2) The percent of Section 8 mover families with children who moved to low poverty census tracts in the PHA's principal operating area during the last PHA FY is atleast two percentage points higher than the percent of all Section 8 families with children who resided in low poverty census tracts at the end of the last PHA FY; or (3) The percent of Section 8 mover families with children who moved to low poverty census tracts in the PHA's principal operating area over the last two PHA FY is at least two percentage points higher than the percent of all Section 8 families with children who resided in low poverty census tracts at the end of the second to last PHA FY. httnc•//nir }Ind anv/nir/caman/cmnaccpccmpntrprtifiratinnenntri asn 7/2R/7009 City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT ..IEETING DATE August 18, 2009 AGENDA ITEM NO. 26 ITEM TITLE RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY APPROVING USE OF $669,653 IN LOW MODERATE HOUSING FUNDS AND $1,110,347 IN HOME INVESTMENT PARTNERSHIPS PROGRAM FUNDS FOR THE PERMANENT FINANCING OF THE CASA FAMILIAR, INCORPORATED ACQUISITION AND REHABILITATION PROJECT LOCATED AT 1101-1119 E. AVENUE AND 1111 D AVENUE. PREPARED BY DEPARTMENT Alfredo Ybarra (Ext. 4279) Community Development, Housing and Grants Division EXPLANATION This action would authorize the allocation of $669,653 in Low Moderate Housing Funds (LMHF) and $1,110,347 as permanent financing for the acquisition and rehabilitation of two (2) properties located at 1101-1119 E Avenue and 1111 D Avenue, National City. On April 1, 2008 and August 19, 2008, your City Council approved $182,466 in HOME funds and the Community Development Commission approved $1,597,534 in LMHF, respectively, for a total of $1,780,000 to provide interim financing (bridge loan) allowing the acquisition and rehabilitation of the two properties. On December 2, 2008, the City Council approved $927,881 in HOME funds to Casa Familiar to pay down the LMHF bridge loan. The pay down of the bridge loan will create a LMHF permanent loan of $669,653 and amend the HOME permanent loan from $182,466 to $1,110,347. Therefore, the interim and permanent financing will be as follows: Funding Source Interim Permanent HOME Investment Partnership $182,466 $1,110,347 Tax Increment LMHF $1,597,534 (Bridge Loan) $669,653 Total $1,780,000 $1,780,000 Environmental Review N/A This Housing Project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301. Financial Statement Approved By: Finance Director Funds for this project recommended to the Community Development Commission of the City of National City are not budgeted. If approved, this request will result in $1,780,000 cost in FY 2009-10. Account No. STAFF RECOMMENDATION Adopt resolution BOARD / COMMISSION RECOMMENDATION ATTACHMENTS (Listed Below) Resolution No. i. Background Report A-200 (9/99) RESOLUTION NO. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY APPROVING USE OF $669,653 IN LOW MODERATE HOUSING FUNDS AND $1,110,347 IN HOME INVESTMENT PARTNERSHIP PROGRAM FUNDS FOR THE PERMANENT FINANCING OF THE CASA FAMILIAR, INCORPORATED ACQUISITION AND REHABILITATION PROJECT LOCATED AT 1101-1119 E AVENUE AND 1111 D AVENUE. WHEREAS, the Community Development Commission of the City of National City (CDC) administers the HOME Investment Partnerships Program; and WHEREAS, the City of National City has a great need for affordable housing; and WHEREAS, the City and the CDC desire to support an affordable housing project; and WHEREAS, the City and CDC have established the rehabilitation of the City's housing stock as a priority; and WHEREAS, Casa Familiar, Incorporated is a nonprofit public benefit corporation under the provisions of the Internal Revenue Code Section 501(c)(3); and WHEREAS, on April 1, 2008, the City adopted Resolution 2008-79 and approved financing to Casa Familiar, Incorporated of $182,466 of HOME Investment Partnership Program Funds (HOME) to assist in this acquisition and rehabilitation project; and WHEREAS, on July 1, 2008, the City adopted Resolution 2008-133, which approved the issuance of multifamily revenue bonds to partially fund the project; and WHEREAS, the CDC adopted Resolution 2008-171, which approved interim financing through a Community Development Commission bridge loan in an amount of $1,597,534 to assist in the acquisition and rehabilitation of the properties located at 1111 D Avenue and 1101-1119 E Avenue, National City; and WHEREAS, on August 27, 2008, Casa Familiar acquired the properties located at 1111 D Avenue consisting of eight — two (2) bedrooms, 1-bath units; and 1101-1119 E Avenue consisting of ten — one (1) bedroom, one (1) bath units; and WHEREAS, on December 2, 2008, the City adopted Resolution 2008-259, which approved additional financing of $927,881 from HOME program income to Casa Familiar to pay down the CDC bridge loan of $1,597,534; and WHEREAS, the pay down of the CDC bridge loan would amend the CDC permanent loan to $669,653. NOW THEREFORE BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, as follows: Section 1. The CDC hereby approves permanent financing through a HOME loan in an amount of $1,110,347 of which $927,881 will be used to pay down the CDC bridge loan of $1,597,534. Section 2. The CDC hereby approves permanent financing utilizing Low Moderate Housing Funds in an amount of $669,653. Section 3. The Executive Director of the CDC is hereby authorized and directed to sign any necessary documents for the financing of the project, including loan agreements, amendments, deeds and subordination agreements to partially pay -down the bridge loan and amend the permanent LMHF financing to $669,653 and the permanent HOME loan to $1,110,947. PASSED AND ADOPTED this 18th day of August, 2009, by the following roll call vote: Ron Morrison, Chairman ATTEST: City Clerk APPROVED AS TO FORM: George H. Eiser, III Legal Counsel BACKGROUND In February 2008, the City has received an HOME Investment Partnerships Program (HOME) application request from Casa Familiar for $1,780,000 in financial assistance for the acquisition and rehabilitation of a scattered site project consisting of two properties located at 1111 D Avenue consisting of eight — two (2) bedrooms, 1-bath units; and 1101-1119 E Avenue consisting of ten — one (1) bedroom, one (1) bath units. The properties are in close proximity to one another in a mixed single and multifamily neighborhood. The 10 unit — E Avenue property was built in 1948 and the 8 unit — D Avenue property was built in 1958. On April 1, 2008, the City Council approved $182,466 in HOME funds for this project during the 2008 CDBG/HOME application process. The approval of $182,466 left a project financing gap of $1,597,534. Your Commission, on August 19, 2008, considered and approved a one-year bridge loan of $1,597,534 in Tax Increment — Low Moderate Housing Funds (LMHF) to assist Casa Familiar, Incorporated to purchase and rehabilitate the properties listed above. The bridge loan was provided to avoid additional expenses to the developer and to wait for the supplemental HOME program income process to be completed later in the year. On December 2, 2008, the City Council approved $927,881 in HOME program income funds through the supplemental allocation process. The intent of these HOME funds is to pay down the LMHF loan. Financing This action recommends approval of the use of $669,653 in LMHF and $1,110,347 in HOME funds for permanent financing to Casa Familiar, Incorporated. The total permanent LMHF loan will be reduced from $1,597,534 to $669,653 ($1,597,534 — 927,881) and the HOME loan will be increased from $182,466 to $1,110,347 ($182,466 + $927,881). The total financial assistance will remain the same at $1,780,000. Funding Source Interim Permanent HOME Investment Partnership $182,466 $1,110,347 Tax Increment LMHF $1,597,534 $669,953 Total $1,780,000 $1,780,000 Along with $1,780,000 from the City of National City, Casa Familiar utilized other sources of financing including private activity bonds ($1,016,000), charitable contributions ($180,000), deferred developer fee ($90,857), and $57,000 in other equity for the property purchases and substantial rehabilitation. The total acquisition and rehabilitation costs are $3,123,858. Restrictions and Loan Terms In exchange for the $1,780,000 loan, Casa Familiar is in the process of rehabilitating the units to safe and decent standards and will maintain affordable rents for 55 years for low-income families earning at or below 50 percent and 60 percent of the area median income (AMI). In exchange for the requested loan, Casa Familiar would preserve 17 units for low- income families, with rents for 5 units (three-1 bedroom and two — 2 bedroom) at 50 percent of the area median income (AMI) and 12 units (seven — 1 bedrooms and five — 2 bedroom) at 60 percent of the AMI. The three (3%) percent simple interest loan will be deferred for 3 years with residual receipt payments (50% of cash flow) beginning on the 37th month after construction completion. Any unpaid balance will be due at the end of the 55 year term. The project will remain affordable for 55 years until the year 2064. Rehabilitation A total of $641,000 has been allocated for substantial rehabilitation with an estimated hard cost of $35,611 per unit. Funds are being used for the rehabilitation of individual unit interiors, exterior building exteriors, and enlargement of one bedroom units. The D Avenue property will include remodeled baths, kitchen upgrades, flooring, painting, electric improvements, improved energy efficiency, life/safety improvements, selected appliance replacement, heater repair or replacement, exterior paint and stucco repairs, termite treatment and fascia repair, guttering, fencing, exterior walkway repairs, trash enclosure repair, roofing repairs, and landscape improvements. Significant improvements will be made to the D Street building elevation and landscape improvements so as to improve the streetscape view of the property. The E Avenue property rehabilitation will include a redesigned parking area, under - grounding of building utilities, expand unit size with area additions to each unit, new roof design with pitched roofs, new kitchens, remodeled baths, new flooring, new appliances, interior and exterior paint, electric improvements, high efficiency water heating, improved energy efficiency, a new laundry facility and storage area, enhanced landscaping, new trash enclosure, individual utility metering. Significant improvements will be made to the E Street budding elevation and landscape improvements so as to improve the streetscape view of the property. Approval of this recommendation by the Commission will allow staff to proceed with the permanent financing and execute all loan documents with Casa Familiar, Incorporated. Linkage to the National City Strategic Plan The acquisition and rehabilitation of the subject properties supports the City's "Develop Affordable Housing by Leveraging 20% Set Aside, Home Funds, and Other Affordable Housing Finance Programs" strategic initiative to help residents find safe and affordable housing. Approval of this proposal will create long-term affordable housing for low- income families in the region. City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT VIEETING DATE August 18, 2009 AGENDA ITEM NO. 27 (ITEM - EM TITLE RESOLUTION OF THE COMMUNITY DEVELOPMENT COMISSION OF CITY OF NATIONAL CITY APPROVING A GAP LOAN TO CASA FAMILIAR, INCORPORATED FOR S835,000 TO COMPLETE THE ACQUISITION AND REHABILITATION OF THE CASA QUINTA APARTMENTS LOCATED AT 304 EAST FIFTH, NATIONAL CITY FUNDED BY AND SUBJECT TO AFFORDABILITY REQUIREMENTS OF THE HOME INVESTMENT PARTNERS PROGRAM PREPARED BY Alfredo Ybarra (Ext. 4279) EXPLANATION DEPARTMENT Community Development, Housing and Grants Division This action authorizes the allocation of $835,000 in federal HOME Investment Partnerships Program (HOME) funds to assist with the acquisition and rehabilitation of a 10-unit rental housing project located at 304 East Fifth, National City. The total sources of financing for the property purchase and substantial rehabilitation include the $835,000 loan from the City of National City, assumption of an existing $685,000 amortized loan by Casa Familiar, and a deferred developer fee of $108,600. The total acquisition and rehabilitation cost is $1;6-13 6d0. In e change for the $835,000 loan, Casa Familiar, Incorporated, a non profit public benefit corporation, will maintain affordable rents in nine units for 15 years to low-income households earning at or below 50 percent (2 units), and 60 percent (4 units) of the area median income (AMI). Casa Familiar plans to restrict rents on 3 additional units for families at or below 80% of AMI. The funds for the project are from previous year HOME funds granted by the U.S. Department of Housing and Urban Development in FY2007-2008 and FY2008-2009. (See Background Report, Attachment 1) Environmental Review The Casa Quinta Apartment Project is exempt from the Califomia Environmental Qua CEQA Guidelines Section 15301a. Financial Statement Approved By: t (CEO _ uant to Finance Director Funds for this project are not currently budgeted for FY2009-2010 but are available for reallocation from previous year HOME program funds in account 505-445-462-650-9023 and will be transferred to account 505-445-462-650- 9024. (See Background Report, Attachment I) Account No. STAFF RECOMMENDATION Adopt resolution BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS (Listed Below) Resolution No. 1. Background Report 2. Loan Agreement A-200 (9/99) RESOLUTION NO. 2009- RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY APPROVING A GAP LOAN TO CASA FAMILIAR, INCORPORATED FOR $835,000 TO COMPLETE THE ACQUISITION AND REHABILITATION OF THE CASA QUINTA APARTMENTS LOCATED AT 304 EAST FIFTH, NATIONAL CITY FUNDED BY AND SUBJECT TO AFFORDABILITY REQUIREMENTS OF THE HOME INVESTMENT PARTNERSHIPS PROGRAM WHEREAS, the Community Development Commission of the City of National City (CDC) administers the HOME Investment Partnerships (HOME) Program for the City of National City (City); and WHEREAS, the City and the CDC have established a need for affordable housing; and, WHEREAS, the City and the CDC have established the rehabilitation of National City's housing stock as a priority; and WHEREAS, Casa Familiar, Incorporated is a nonprofit public benefit corporation under the provisions of the Internal Revenue Code Section 501(c)(3); and WHEREAS, the CDC has identified $835,000 of HOME funds to finance affordable housing from FY2007-2008 and FY2008-2009 available for reallocation; and WHEREAS, on May 26, 2009, Casa Familiar entered into a contract to purchase said property for $1,075,000; WHEREAS, Casa Familiar will assume an existing loan of $685,000 from the current lender and requires the CDC's loan to complete the purchase of said property, and finance $275,800 in rehabilitation hard costs, a deferred developer fee of $108,600 and other costs; and WHEREAS, two housing units of said property will restricted to rents affordable to households at or below 50% of Area Median Income (AMI) for a period of fifteen years; and WHEREAS, four housing units of said property will be restricted to rents affordable to households at or below 60% AMI for a period of fifteen years. NOW THEREFORE BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY as follows: A. The CDC hereby approves gap financing through a HOME Program loan in an amount of $835,000 utilizing HOME Investment Partnership Program funds. B. The funding of the $835,000 gap loan will be contingent on the reallocation of the said amount of HOME funds from Account 505-445-462-650-9023 to Account 505-445- 462-650-9024 by the City Council of the City of National City on September 15, 2009. Page 1 of 2 C. The Executive Director of the CDC is hereby authorized to sign any necessary documents for the financing of the project, including loan agreements, amendments thereto, deeds and subordination agreements. PASSED AND ADOPTED this 18th day of August, 2009, by the following roll call vote: Ron Morrison, Chairman ATTEST: Brad Raulston, Secretary APPROVED AS TO FORM: George H. Eiser, III Legal Counsel Page 2 of 2 Attachment #1 CASA QUINTA AFFORDABLE HOUSING PROJECT BACKGROUND The Community Development Commission has received a request from Casa Familiar for $835,000 to assist with the acquisition and rehabilitation of a 10-unit rental housing project located at 304 East Fifth, National City. In exchange for the $835,000 loan, Casa Familiar, Incorporated, a non-profit public benefit corporation, will maintain affordable rents for low- income families earning at or below 50 percent, 60 percent, and 80 percent of the area median income (AMI). Rehabilitation The proposed loan of $835,000 includes $275,800 in HOME funds to rehabilitate the property with an estimated hard cost of $27,580 per unit. Funds will be used for the rehabilitation of individual unit interiors and exterior building improvements. Constructed in 1969, the building is characterized by simple geometry and mass composition with a paucity of exterior detail and functional transitions to the street and neighborhood. Casa Familiar intends to address these issues through the addition of visual roof parapets, new windows and doors, decorative wall treatments, balcony railings, window treatments, awning, and/or trellis applications, building finish and texture, building colors, landscaping, and fencing. Casa Familiar would also improve the functionality of the property by making the following improvements: roof covering, roof insulation, roof drains, skylights, window shading, new balcony rails and stair handrails, balcony surface finish, high efficiency Iighting, exterior acrylic finish, improved parking, and landscaping for solar heating and shading. Individual units will include interior improvements, as needed; heaters, plumbing fixtures, flooring, bath and kitchen countertops, smoke detection devices, bathroom fans and painting. Financing The total sources of financing for the property purchase and substantial rehabilitation include the $835,000 loan from the Community Development Commission of the City of National City, an assumption of an existing $685,000 amortized loan by Casa Familiar, and a deferred developer fee of $108,600. The total acquisition and rehabilitation costs are $1,613,600. This action recommends approval of the use of $835,000 in HOME Investment Partnerships Program funds to Casa Familiar, Incorporated. In exchange for the $835,000 loan, Casa Familiar will acquire, improve, and rehabilitate the units to a safe and decent standard and maintain affordable rents for 15 years for the benefit of low-income families earning at or below 50 percent and 60 percent of the area median income (AMI). Reallocation of HOME Funds Funding for the $835,000 HOME program loan to Casa Familiar is available for reallocation from Habitat for Humanity Account 505-445-462-650-9023 in FY2007-2008 ($500,000) and FY2008- 2009 ($335,000) that remain uncommitted and will not be required for the construction of Habitat's 18t and G Project. These funds are to be reallocated to Casa Familiar, Inc Account # 505-445-462-650-9024 for the Casa Quinta Affordable Housing Project. A 30-day public notice will be published and a public hearing will be scheduled for September 8, 2009 to approve the reallocation. Restrictions and Loan Terms In exchange for the requested loan, Casa Familiar will maintain affordable rents on two - 2 bedroom units for families at or below 50 percent of the area median income (AMI), four- 2 Page 1 of 2 Attachment # 1 bedroom units for families at or below 60 percent of the AMI. The affordability period will be for 15 years for 6 units. The City loan will be a two (2%) percent simple interest loan with residual receipt payments at 30% of cash flow beginning on the following November after the closing date. Any unpaid balance will be due at the end of the 55 year term. Casa Familiar plans to provide an additional 3 units for families at or below 80% of AMI however, however the City's Loan Agreement (Attachment 2) will not restrict these units. Approval of the recommendation by the City Council will allow staff to proceed with contract negotiations, and upon completion of the negotiations, execute all loan documents with Casa Familiar, Incorporated. City Service Fee Agreement As is typical of affordable housing projects, Casa Familiar will claim a welfare property tax exemption that will exempt Casa Familiar from paying real estate taxes on the property and any related improvements. In the process of the applying for the HOME funds for this project, there was discussion and concurrence on the part of the developer to negotiate a City Service Fee Agreement that would essentially pay a fee for services the City will provide to the Property. The revenues from this agreement will offset typical costs the City incurs in servicing multi- family properties such as this one. The Developer will be required to sign a City Service Fee Agreement with the City for the payment of a negotiated amount of $2,500. The fee will increase at a rate of 2% per year. Linkage to the National City Strategic Plan The acquisition and rehabilitation of the subject property supports the City's "Develop Affordable Housing by Leveraging 20% Set Aside, Home Funds, and Other Affordable Housing Finance Programs" strategic initiative to help residents find safe and affordable housing. Approval of this proposal will create long-term affordable housing for low-income families in the region. Page 2 of 2 HOME PROGRAM LOAN AGREEMENT (2009-02) by and between the CDC OF NATIONAL CDC a public body corporate and politic and CASA FAMILIAR, INC., a California 501(c)(3) non-profit public benefit corporation for a loan in the principal amount of up to $835,000 , 2009 TABLE OF CONTENTS 1.0 HOME LOAN 1 2.0 HOME PROMISSORY NOTE; HOME LOAN REPAYMENT 1 2.1 HOME NOTE I 2.2 BASIC IN . 1 2.4 PAYMENTS DUE ON TRANSFER OK REFINANCE 1 3.0 ACCELERATION. 1 4.0 PREPAYMENT; APPLICATION OF PAYMENTS 1 5.0 SECURITY AND SOURCE OF PAYMENT. 1 6.0 ESCROW; CONDITIONS TO FUNDING THE HOME LOAN. 1 7.0 SUPPORTIVE SERVICES 1 8.0 PURPOSE OF HOME LOAN 1 9.0 COVENANTS OF BORROWER. 1 9.1 COMPLIANCE WITH LAWS 1 9.2 REVENUE DISCLOSURES 1 9.3 OTHER REPORTS 9.4 INDEMNIFICATION. 9.5 AUDIT BY STATE AND FEDERAL AGENCIES. 9.6 PROGRAM EVALUATION AND REVIEW 1 9.7 HAZARDOUS MATERIALS 9.8 INSURANCE 1 9.9 FINANCIAL STATEMENTS; TAX RETURNS 1 9.10 OTHER LOANS 1 9.11 CONSTRUCTION REQUIREMENTS. 1 9.12 SCHEDULE OF PERFORMANCE 1 9.13 RELOCATION REQUIREMENTS 1 9.14 ENVIRONMENTAL CONDITIONS 1 9.15 DESIGN STANDARDS ERROR! BOOKMARK NOT DEFINED. 10.0 USE OF PROPERTY; LEASING AND MANAGEMENT 1 10.1 LIMITATIONS ON TENANTS. 1 10.2 TENANT SELECTION PROCESS; REPORTS AND RECORDS CONCERNING TENANCIES. 1 10.3 MANAGEMENT OF PROJECT. 1 10.4 OPERATIONS AND MAINTENANCE. 1 11.0 BORROWER'S OBLIGATION TO REFRAIN FROM DISCRIMINATION 1 11.1 FORM OF NONDISCRIMINATION AND NONSEGREGATION CLAUSES. 1 12.0 CDC REQUIREMENTS 1 13.0 INDEPENDENT CONTRACTOR. 1 14.0 ASSIGNMENT OF THIS AGREEMENT. 1 15.0 EVENTS OF DEFAULT AND REMEDIES 1 15.1 BORROWER EVENTS OF DEFAULT. 1 15.2. CDC REMEDIES. 1 15.3. No REMEDY EXCLUSIVE 1 15.4. CDC DEFAULT AND BORROWER REMEDIES. 1 16.0 INTENTIONALLY OMITTED. 1 17.0 RIGHT OF ACCESS AND INSPECTION. 1 18.0 CONFLICT OF INTEREST; NO INDIVIDUAL LIABILITY 1 19.0 AMENDMENTS, CHANGES AND MODIFICATIONS 1 20.0 EXECUTION OF COUNTERPARTS. 1 Page i 21.0 NOTICES. 1 22.0 SEVERABILITY. 1 23.0 INTERPRETATION. 1 24.0 NO WAIVER; CONSENTS. 1 25.0 APPLICABLE POLICIES. 1 A. GOVERNING LAW 1 B. COMPLIANCE WITH LAWS. 1 C. HOME PROGRAM AND FEDERAL REQUIREMENTS. 26.0 REPRESENTATIONS AND WARRANTIES OF BORROWER 1 A. ORGANIZATION AND STANDING. 1 B. ENFORCEABILITY. 1 C. AUTHORIZATION AND CONSENTS D. DUE AND VALID EXECUTION. 1 E. LICENSES. 1 F. LITIGATION AND COMPLIANCE. 1 G. DEFAULT. 1 H. NO VIOLATIONS. I. NO AFFILIATION WITH LENDERS. 1 27.0 APPROVALS. 1 28.0 GOOD FAITH AND FAIR DEALING. 1 29.0 ASSIGNMENT OF INTEREST IN THE SITE OR TIIE PROJECT 1 30.0 ACCESS AND RETENTION OF RECORDS. 1 Page ii LOAN AGREEMENT Transaction Summary Project Name: Casa Quinta Preservation Project Borrower Name::Casa Familiar, Inc., a Califomia non-profit public benefit corporation 0 Limited Partnership ❑ LLC 0 Nonprofit Public Benefit Corporation ❑Other HOME Loan Amount: $835,000 Interest Rate: 2% simple Repayment term: 55 years. Repayment type: El residual receipts (prorata share of 33%) Total Number of Units in Project: 10 Number of HOME -assisted units: 6 Location (Jurisdiction): NI Incorporated: 0 Unincorporated Site Acreage: .214 acres Project Type: rental for 0 Seniors 55 years and older t] Families 0 special needs (specify: ) Use of HOME Loan Funds: CI Acquisition NI Rehabilitation ®Permanent ❑ Collateral Pledge ❑ Rehabilitation 0 Affordability 15 years; No./size of HOME units, income levels: 6 HOME units. 0 Bedroom 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms HOME Units 50% AMI-HOME 2 2 60% AMI-HOME 4 4 80% AMI, non -HOME 3 Mgr. Unit, non -HOME 1 Totals 10 5 Other Project Financing Sources / Priority Relative to CDC Loan: Note: Final funding amounts are subject to change. (1) Conventional Loan (2) CDC of National CDC HOME Loan (3) Deferred Developer Fee $ 685.000 Nisenior ❑junior ❑parity/NA $ 835,000 0 senior Nijunior ❑parity/NA $ 93,750 ❑senior ❑junior OparitylNA The foregoing Transaction Summary is provided for the convenience of the parties. In case of any conflict, the detailed terms below and/or in the attachments to this Loan Agreement shall control. Loan Agreement — 304 E. Sth St. Preservation Project Casa Familiar, Inc_ Page I THIS LOAN AGREEMENT ("Agreement") is made as of the day of , 2009, by and between the COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CDC, a public body corporate and politic ("CDC"), and CASA FAMILIAR, INC., a Califomia 501(c)(3) non-profit public benefit corporation ("Borrower"). The CDC and Borrower are sometimes referred to collectively herein as the "Parties" and each individually as "Party." RECITALS A. WHEREAS, Borrower desires to borrow the principal amount not to exceed EIGHT HUNDRED THIRTY-FIVE THOUSAND Dollars ($835,000) (the "HOME Loan") from the CDC for the purpose of providing acquisition, rehabilitation and permanent financing for an 10-unit housing project, also known as Casa Quinta Preservation Project. Said project will consist of nine two -bedroom units reserved for very -low and lower -income families and seniors, with one two -bedroom unit reserved for an on -site manager. The aforementioned housing project ("Project") is described in the Transaction Summary above, and as more particularly described in this Agreement. The CDC's source of funding for the HOME Loan is provided from the HOME Investment Partnerships Program, 24 CFR Part 92 ("HOME"). The Project will be on one site ("Sites") commonly known as 304 East Fifth St., National CDC, CA 91950, and legally described on Exhibit "B" to this Agreement. A detailed Project description is attached hereto as Exhibit "F" B. WHEREAS, other sources of financing for the Project are anticipated to include, but may not be limited to (i) senior lien financing listed in the Transaction Summary above ("Senior Financing"), to which the CDC shall expressly subordinate the lien of the CDC's HOME Deed of Trust; (ii) financing junior in priority to the lien of the CDC's HOME Deed of Trust as listed in the Transaction Summary above ("Junior Financing"); and (iii) other financing sources listed in the Transaction Summary above ("Other Financing"). C. WHEREAS, rehabilitation and operation of the Project on the terms and conditions provided in this Agreement will provide affordable housing opportunities for persons of very low- income as described in the Transaction Summary above. If applicable, the Project will provide supportive services to the extent described in Section 7 below and in Exhibit "N". D. WHEREAS, as more particularly provided below, Borrower will deliver to the CDC, among other items, the "HOME Deed of Trust", "HOME Promissory Note" and the "CC&R's" (as those terms are defined below) to, respectively, secure repayment of the HOME Loan by Borrower as provided herein and to ensure that the affordability and habitability of the Project is maintained in accordance with the terms of those instruments and this Agreement. E. WHEREAS, the CDC desires to make the Loan to Borrower, on the terms and conditions set forth herein. F. WHEREAS, it is understood and agreed by the parties that the loan of HOME funds by the CDC to Borrower shall be contingent upon the approval by the Community Development Commission of the CDC of National CDC of the reallocation of previous year HOME funds. NOW, THEREFORE, the Parties agree as follows: Loan Agreement - 304 E. 5tSt. Preservation Project Casa Familiar, Inc. Page 2 LOAN AGREEMENT 1.0 HOME LOAN . CDC agrees, subject to the terms and conditions of this Agreement and in consideration of the representations, covenants and obligations of Borrower contained in this Agreement, to make the HOME Loan to Borrower, to be used solely for the purposes described herein and secured by the HOME Deed of Trust. The HOME Loan funds will be for the acquisition, rehabilitation and permanent financing of Six (6) HOME units on the Site and for reimbursement and payment of approved eligible costs described in Exhibit "H" ("Approved Development Budget"). This amount will be funded in accordance with Section 6 in an amount not to exceed EIGHT HUNDRED THIRTY FIVE THOUSAND DOLLARS ($835,000). 2.0 HOME PROMISSORY NOTE; HOME LOAN REPAYMENT. 2.1 HOME Note. As one of the conditions to disbursement of the HOME Loan to Borrower under Section 6 below, Borrower shall execute a HOME Promissory Note (the "HOME Note") in the form of Exhibit "C" attached hereto, which HOME Note sets forth terms and conditions for the repayment of the HOME Loan. The HOME Note shall be secured by the HOME Deed of Trust ("HOME Deed of Trust") as provided below. 2.2 Basic Interest. The disbursed and unpaid principal balance of the HOME Loan shall bear interest commencing on the date on which such Loan proceeds are first disbursed for the account of Borrower as provided herein, and ending on the date paid, at the rate of two percent (2%) per annum, simple interest ("Basic Rate"). Interest shall be computed on the basis of actual number of days elapsed and a three hundred sixty- (360) day year. Notwithstanding the foregoing, and without limiting any other remedy of the CDC, amounts not paid by Borrower when due shall bear interest from the date due to the date paid at the rate of ten percent (10%) per annum ("Default Rate"). 2.3 Payment Dates and Amounts. As set forth in greater detail in the Note, Borrower shall repay the Loan, together with accrued interest at the Basic Rate in arrears, in annual installments on November 15th of each calendar year for the previous fiscal year from July 1st to June 30th. The CDC's percentage of Residual Receipts is subject to modification as specified in Section 1.2 of the Note. Absent prepayment or acceleration, each of the annual payments due November 15, 2010 through and including November 15, 2065 ("Maturity Date") shall be in an amount equal to thirty three percent (33.0%) of "Residual Receipts" (as defined in the Note) for the prior calendar year. Residual Receipts shall be calculated and reported to the CDC annually for each calendar year no later than November 15th of the following calendar year on forms specified and provided by the CDC from time to time. All calculations and records are subject to review by the CDC. Notwithstanding any other provision of the Note or of this Agreement, unless due sooner, the Loan Agreement — 304 E. 5t St. Preservation Project — Casa Familiar, Inc. Page 3 entire outstanding principal balance of the Loan together with any outstanding interest and any other sums payable under the Note shall be due and payable in full on the Maturity Date. The term of this Agreement (the "Term") shall be from the date of this Agreement through and including the Maturity Date; provided, however, that the use restrictions in Section 10 and the nondiscrimination covenants in Section 11 shall extend beyond the Term as provided in those sections. 2.4 Payments Due on Transfer or Refinance. In addition to the payments provided in Section 2.3 above, and subject to the terms of the Senior Financing, Borrower shall pay to CDC towards (but not to exceed) any outstanding amounts associated with the HOME Loan, the "Applicable Percentage" of "Net Proceeds" of an "Assignment"; and fifty percent (50%) of "Net Refinancing Proceeds" received from a "Refinancing", as such terms are defined in the HOME Note. 3.0 ACCELERATION. Notwithstanding the payment terms set forth in Section 2 above, upon the occurrence of any "Event of Default" as set forth in Section 15 below, the entire outstanding principal balance of the HOME Note, together with any outstanding interest and other amounts payable thereunder, shall, at the election of CDC and upon notice to Borrower thereof, become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by Borrower. 4.0 PREPAYMENT; APPLICATION OF PAYMENTS. At any time after the disbursement of the HOME Loan proceeds, Borrower may prepay all or a portion of the unpaid principal amount of the HOME Loan and accrued interest and any other sums outstanding without penalty. Borrower hereby agrees and understands that the prepayment of the HOME Note shall not relieve Borrower of the duty to comply with the covenants described in Sections 9, 10, and 11 herein, and such obligations and covenants shall remain in full force and effect pursuant to their terms. All payments, including any prepayments or funds received upon acceleration pursuant to Section 3 above, shall be applied first toward any outstanding costs of collection or other amounts (excluding HOME Loan principal or interest thereon) due under the HOME Note or this Agreement, then toward outstanding interest accrued at the "Default Rate" of eight percent (8%) per annum (simple interest), if any, then toward outstanding interest accrued at the Basic Rate, if any, and finally toward the remaining principal balance under the HOME Note. 5.0 SECURITY AND SOURCE OF PAYMENT. Borrower's obligation to repay the HOME Loan and any associated interest and other amounts payable under this Agreement or the HOME Note shall, at all times during which any amount remains outstanding, be secured by the deed of trust ("HOME Deed of Trust"), in the form of Exhibit "D" attached hereto, recorded against Borrower's interest in the Site and the Project (collectively, the "Property"). The security interest in the Property granted to CDC pursuant to the HOME Deed of Trust shall be subordinate only to the Senior Financing and such exceptions to title shown in the title report for the Property, which are approved in writing by CDC. Loan Agreement — 304 E. 5`"St. Preservation Project — Casa Familiar, Inc. Page 4 Except to the extent any Event of Default hereunder results directly or indirectly from any willful misconduct, fraud or intentional and material misrepresentation by Borrower in connection with this Agreement or the HOME Loan, the HOME Loan is a nonrecourse obligation of Borrower and in the event of the occurrence of an Event of Default, CDC's only recourse under the HOME Deed of Trust shall be against the Property, the proceeds thereof, the rents and other income arising from its use and occupancy as provided in the HOME Deed of Trust, and any other collateral given to CDC as security for repayment of the HOME Loan such that neither Borrower nor any partner of Borrower shall have personal liability for repayment of the HOME Loan. 6.0 ESCROW. CONDITIONS TO FUNDING THE HOME LOAN. 6.1 Except to the extent the CDC's directs in writing that some or all of the disbursement and/or deliveries shall occur outside of Escrow, disbursement of the HOME Loan proceeds in accordance with this Agreement, delivery of the executed HOME Note to CDC, and recordation of the HOME Deed of Trust and other HOME Loan Documents (as defined in Section 6.2(e) below) to be recorded shall be carried out through an escrow account ("Escrow") to be established by the Parties with a title or escrow company ("Escrow Holder") specifically approved in writing for this transaction by CDC. Borrower shall obtain CDC's approval of an Escrow Holder and open Escrow not later than 90 days following execution of this Agreement. The Parties may execute supplemental instructions to Escrow Holder consistent with the terms of this Agreement, but in the event of a conflict between the terms of this Agreement and any supplemental escrow instructions, the terms of this Agreement shall control. Except as otherwise expressly provided herein, any fees and costs incurred by Escrow Holder in the performance of its duties hereunder and agreed to be paid by the Parties shall be paid exclusively by Borrower. 6.2 The obligation of CDC to make disbursements of HOME Loan proceeds under this Agreement shall be expressly subject to satisfaction of all of the following conditions (collectively, the Closing Conditions) on or before the date ("Closing Deadline") which is Ninety (90) days following the date of this Agreement. (a) The execution of this Agreement by the CDC and Borrower, and delivery of a fully -executed copy to Escrow Holder; (b) Borrower's due execution and deposit into Escrow of a certified copy of the HOME Note; (c) Borrower's due execution (with notary acknowledgment) and deposit into Escrow of the covenants, conditions and restrictions ("CC&R's") in the form attached hereto as Exhibit "E", recorded against the leasehold interest of the Borrower; (d) Borrower's due execution (with notary acknowledgment) and deposit into Escrow of the HOME Deed of Trust; (e) Receipt by the CDC from Borrower of such other documents, certifications and authorizations as are reasonably required by the CDC, in form and substance satisfactory to the CDC, evidencing that (i) this Agreement, the HOME Note, the HOME Deed of Trust, the CC&R's and all other documents given or executed in connection herewith (collectively with this Agreement, the HOME Note, the HOME Deed of Trust and the CC&Rs, the "Loan Documents") are duly and validly executed by Borrower and constitute the valid and enforceable obligation of Borrower pursuant to the respective terms, and (ii) the execution and Loan Agreement — 304 E. 5th Si. Preservation Project — Casa Familiar, Inc. Page 5 delivery of the Loan Documents, and the performances thereunder by Borrower, will not breach or violate any law applicable or govemmentai regulation to which Borrower is subject nor constitute a breach of or default under any instrument or agreement to which Borrower may be a party; (f) First American Title, North American Title, Chicago Title, Stewart Title, or another title company approved by the CDC ("Title Company") shall have assured the CDC in writing that upon recordation of the HOME Deed of Trust there will be provided to the CDC, at Borrowers sole expense, a lenders policy of title insurance (with customary endorsements, including but not limited to Nos. 100, 103.7, 116 and 122 and such other endorsements as the CDC shall reasonably require) issued by the Title Insurance Company in the amount of the HOME Loan, insuring the CDC's interest in the Property as beneficiary under the HOME Deed of Trust, and specifically insuring that the lien of the HOME Deed of Trust and the CC&R's against the Property are subject only to the Senior Financing and any exceptions to title applicable to the Property which were expressly approved in writing by the CDC (collectively with the Senior Financing, "Permitted Senior Encumbrances"). Standard lender's title insurance coverage (without the need for a survey) will be accepted by the CDC unless another Project lender requires extended coverage, in which case an ALTA extended coverage policy will also be provided to the CDC; (g) Intentionally omitted (h) No Event of Default shall exist under this Agreement or under any agreement or instrument relating to the Senior Financing, Other Financing, or Junior Financing, and Borrower has demonstrated to the satisfaction of the CDC Executive Director (or his designee) that all financing sources for acquisition, rehabilitation, and operation of the Project, including but not limited to Borrower's equity, are or will be available in sufficient amounts to provide for full and timely completion and ongoing operation of the Project; (i) Borrower shall have commenced or be ready to commence Project construction, and shall have fumished CDC with copies of (A) a contract for the Project development ("Construction Contract") entered into with a general contractor ("General Contractor") previously approved in writing by the CDC, and; (B) any other plans, documents and approvals by the CDC as required under Exhibit "L" to this Agreement, entitled "Construction Requirements". (j) Borrower shall have provided to the CDC, in form satisfactory to the CDC, certified copies of (i) Borrower's goveming documents, including articles of incorporation. Bylaws (ii) a good standing certificate from the Califomia Secretary of State, certifying that Borrower is duly qualified and in good standing, and (iii) all other documents necessary to evidence to the CDC's satisfaction that the individuals and entities executing this Agreement and the Loan Documents, and other entities on whose behalf such documents are executed, are fully authorized to do so and to bind the respective entities, including Borrower, to the terms hereof and thereof; (k) At least 90 days prior to occupancy and prior to the commencement of tenant selection for the Project, Borrower shall have obtained the CDC's written approval of an affirmative marketing plan, leasing guidelines, and a summary of the rules, procedures and programs for the Project including specifically the procedures to be employed by which the tenants of the assisted units (as defined in Section 10.1 below) in the Project shall be selected in the event that, at any given time, the number of Eligible Households applying to lease units at the Project exceeds the number of units available. Loan Agreement — 304 E. 5th St. Preservation Project — Casa Familiar, Inc_ Page 6 (I) Borrower, at the request of the CDC, shall have furnished and obtained the CDC's approval of an operating budget and a Management Plan for the Project. The Management Plan shall include a preliminary Operating Budget in a format mandated by the CDC, approved by the CDC at its sole discretion. In the event the preliminary Operating Budget is proposed for revision at the time the Certificate of Occupancy is issued, any such revision must be approved by the CDC at its sole discretion; (m) Borrower shall have fumished the CDC with evidence satisfactory to the CDC evidencing the insurance coverages required by Section 9.8 below; 6.3 When, and only when, Escrow Holder has confirmed that Closing Conditions (a), (b), (c), (d), (f), (G) and (i) of Section 6.2 above have been satisfied, and has received written certification from CDC Executive Director, or his designee, that all other Closing Conditions have been timely satisfied or waived, then Escrow Holder shall carry out the close of Escrow ("Close of Escrow") by: (i) causing the HOME Deed of Trust and the CC&R's to be recorded in the Official Records of San Diego County, Califomia; (ii) delivering the executed original HOME Note to the CDC; (iii) causing the Title Policy to be issued to the CDC in the form and amount specified above; and (iv) promptly following recordation, delivering conformed copies of the recorded documents to the CDC and Borrower. 6.4 The Close of Escrow shall not occur prior to satisfaction of all conditions precedent to the closings for the Senior Financing and the Junior Financing. Notwithstanding any other provision, Escrow Holder shall disburse proceeds of the Loan prior to the closings for the Senior Financing and the Junior Financing only if expressly directed by written instructions from the CDC. 6.5 Time is of the essence with respect to the rights and obligations of the Parties under this Agreement and if the Close of Escrow does not occur prior to the Closing Deadline, then the Escrow shall terminate, and Escrow Holder shall promptly return all funds and documents to the Party depositing them. 7.0 SUPPORTIVE SERVICES Borrower shall provide residents of the Project with services as provided in Exhibit N. 8.0 PURPOSE OF HOME LOAN 8.1 The HOME Loan proceeds shall be used by Borrower for the acquisition, rehabilitation and permanent financing of the Project. Amounts in excess of this amount must be approved by the Executive Director or his designee. In no event shall Borrower use or otherwise invest the proceeds of the HOME Loan except as expressly provided in this Agreement. 82 The HOME loan shall be considered Permanent Financing at such time as the Project is Loan Agreement — 304 E. 5tSt. Preservation Project -- Casa Familiar, Inc. Page 7 completed. The Project shall be "completed," which shall be deemed to have occurred when CDC has received satisfactory evidence that the Project has been completed in compliance with the plans and specifications (collectively, "Plans") referenced in the construction contract ("Construction Contract") which Borrower has entered into with a general contractor ("General Contractor") with respect to the Project, and that all final permits and certificates necessary to the operation of the Project as contemplated herein, and releases, waivers and other instruments evidencing no claims, stop notices or mechanics liens existing with respect to the Project, have been obtained, including, without limitation, the following, each of which is subject to CDC's review and approval: (a) A signed certificate from the General Contractor, in a form reasonably acceptable to CDC, certifying to CDC that rehabilitation was completed substantially in accordance with the requirements of the Construction Contract, the Plans and this Agreement, and all other related on -site and off -site improvements have been com pleted; (b) A certificate of occupancy (the "Certificate of Occupancy") and/or any other final permits and licenses necessary to permit the use and occupancy of the Project for its intended purposes, which have been issued by proper govemmental agencies; (c) Unconditional Waivers and Releases Upon Final Payment, in statutory form, showing no amounts in dispute, have been received from the General Contractor, all subcontractors, and all other persons or entities providing services or fumishing materials in connection with the Project. 8.3 To the extent otherwise permitted under this Agreement, Borrower (or an affiliate of Borrower previously approved by the CDC) may receive from the HOME Loan proceeds, or other development funds available to Borrower, including equity, a Developer Fee ("Developer Fee") not to exceed ONE HUNDRED SEVENTY TWO THOUSAND DOLLARS ($172,000) in connection with rehabilitation of the Project; provided, however, that the Capitalized Developer Fee shall not exceed the amount of SEVENTY EIGHT THOUSAND TWO HUNDRED FIFTY DOLLARS ($78,250) payable during the course of construction from permanent loan proceeds. 8.4 Borrower shall have furnished CDC and obtained CDC's approval of the compliance with the environmental mitigation measures specified in the "Environmental Special Conditions" referenced in Exhibit K attached. Borrower hereby acknowledges that CDC's review and approval of such compliance with environmental mitigation measures under this Agreement is solely for the benefit of the CDC, and should not be relied upon as any measurers or warranty of the correctness, adequacy or appropriateness of such matter. 9.0 COVENANTS OF BORROWER. As additional consideration for the making of the HOME Loan .by CDC, Borrower covenants as follows: 9.1 Compliance with Laws. Borrower shall comply with all Applicable Govemmental Restrictions. As used herein, "Applicable Govemmental Restrictions" shall mean and include any and all laws, statutes, ordinances, codes, rules, regulations, directives, writs, injunctions, orders, decrees, rul- ings, conditions of approval, or authorizations, now in force or which may hereafter be in force, Loan Agreement — 304 E .5 h Si. Preservation Project — Casa Familiar, Inc. Page 8 of any govemmental entity, agency or political subdivision as they pertain to the performance of this Agreement or rehabilitation or operation of the Project, including spec,ifically but without limitation all code and other requirements of the jurisdiction in which the Project is located; the National Environmental Policy Act of 1969, as amended; the laws specified in Section 12, below; fair housing laws, prevailing wage laws (e.g. Califomia Labor Code Section 1720 et seq., and Davis -Bacon Act 40 U.S.C. 276a), and any other applicable federal, state and local law. Borrower shall indemnify, defend and hold the CDC harmless for any suit, cost, attomeys' fees, claim, administrative proceeding, damage, wage award, fine, penalty or liability arising out of or relating to Borrower's failure to comply with any Applicable Governmental Restrictions, including, without limitation, the nonpayment of any prevailing wages required to be paid in connection with the Project. Borrower is solely responsible for determining the applicability of laws, and should not rely on statements by the CDC_ 9.2 Revenue Disclosures. Borrower shall make available for inspection and audit to CDC's representatives, upon ninety-six (96) hours written request from time to time during the Term at Borrower's offices, or, if requested by CDC, at another location within San Diego County, all of the books and records relating to the operation of the Project and this Agreement All such books and records shall be maintained by Borrower until the end of the Term; provided that in the event any litigation, claim or audit is started before the expiration of the Term, said books and records shall be retained until all litigation, claims, or audit findings involving said books and records shall have been resolved. 9.3 Other Reports. Upon ninety-six (96) hours written notice, at any time during the Term, Borrower shall prepare and submit to CDC, any financial, program progress, monitoring, evaluation or other reports including but not limited to, documents related to construction, reasonably required by CDC or its representatives as they relate to the Project or this Agreement; provided, however, if such requested reports are not capable of being prepared and submitted to CDC within such 96-hour period, then within a reasonable time thereafter. Borrower will ensure that its employees, agents, officers, and board members furnish such information, which in the reasonable judgment of CDC representatives, may be relevant to a question of compliance with this Agreement, CC&Rs, or the HOME Deed of Trust. Borrower shall retain all existing records and data relating to the Project until expiration of the Term. In the event any litigation, claims or audit is started during the Term, said books and records shall be retained until all litigation, claims or audit findings involving said books and records have been resolved. 9.4 Indemnification. From and after the date hereof, Borrower shall indemnify, defend and save harmless CDC, and its members, directors, agents, officers and employees from and against any and all claims, liability, demands, causes of action, losses and expense including reasonable defense costs and legal fees of counsel acceptable to CDC (collectively, "Claims") including, but not limited to Claims for bodily injury, death, property damage, workers' compensation, or in connection with services performed on behalf of Borrower by any person pursuant to this Agreement, and which Claims (i) are based on events which occur or are claimed to have occurred during Borrower's ownership of the Site or the Project, (ii) result directly or indirectly from Borrower's ownership of the Site or the Project, or (iii) result directly or indirectly from the CDC's entering into this Agreement and/or making the HOME Loan to Borrower; provided, however, the foregoing indemnity shall not apply to claims that result solely Loan Agreement — 304 F.. 5u St Preservation Project — Casa Familiar, Inc. Page 9 from the gross negligence or willful misconduct of the CDC. This covenant shall remain in force and effect following the expiration of the term of the HOME Loan. 9.5 Audit by State and Federal Agencies. In the event this Agreement or the HOME Loan is subjected to audit, monitoring or other inspections by appropriate state and federal agencies, Borrower shall comply with such inspections arid pay on behalf of itself and CDC the full amount of the cost to the inspecting agency which results from such inspections, if any unless such inspection and any resulting liability arises solely from the gross negligence or willful misconduct of CDC. 9.6 Program Evaluation and Review. Borrower shall allow CDC authorized personnel to inspect and monitor its facilities and program operations as they relate to the Project or this Agreement, including the interview of Borrower's staff, Borrowers, and other program participants, as reasonably required by CDC during the Term. 9.7 Hazardous Materials. Borrower represents and warrants that it has not deposited "Hazardous Materials" (as defined below) in, on or upon the Site and Borrower covenants that it shall not deposit or permit the deposit of Hazardous Materials in, on or upon the Site or the Project. Borrower further covenants to remove or remediate, at its expense (subject to any reimbursement it may be able to obtain from third parties) any Hazardous Materials located in, on or upon the Site or the Project as of the date hereof or which are deposited in, on or upon the Site or the Project from and after the date hereof and during Borrower's ownership of the Site or the Project, including any asbestos, lead -based paint and any other Hazardous Materials located in the Project, to the extent required by and in accordance with the requirements of all Applicable Govemmental Restrictions, including, without limitation, all applicable environmental laws. The foregoing shall not be construed or understood to prohibit Borrower from allowing Hazardous Materials to be brought upon the Project so long as they are materials which are customary to the normal course of business in the operation of a well -designed housing facility and so long as such materials are used, stored and disposed of in accordance with all Applicable Govemmental Restrictions. Except with respect to any claims solely caused by CDC, Borrower shall indemnify, defend and hold CDC and its members, directors, agents, officers and employees harmless from and against any Claims arising directly or indirectly out of the presence of Hazardous Materials in, on or upon the Site or the Project, existing as of the date hereof or deposited (or claimed to have been deposited) in, on or upon the Site or the Project from and after the date hereof and during Borrower's ownership of the Site or the Project, including without limitation any Claims arising out of any deposits of Hazardous Materials described in (i) and (ii) hereinabove or out of Borrower's failure to remove or remediate all such Hazardous Materials in, on or upon the Site and the Project, as required above. Except with respect to any claims solely caused by CDC, Borrower hereby releases and forever discharges CDC and its agents, officials and representatives from all present and future claims, demands, suits, legal and administrative proceedings and from all losses and liabilities arising out of or in any way connected with Borrower's ownership of the Site, operation of the Project, or any condition of environmental contamination in, on, under, upon or around the Site, or the existence of Hazardous Materials in any state in, on, under, upon or around the Site, and in connection with such release and waiver Borrower is familiar with and hereby waives the provisions of Section 1542 of the California Civil Code which provides as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO Loan Agreement — 304 E. 5mSt Preservation Project — Casa Familiar, Inc. Page 10 EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." For purposes of this Agreement, the term "Hazardous Materials" means, without limitation, gasoline, petroleum products, explosives, radioactive materials, hazardous materials, hazardous wastes, hazardous or toxic substances, polychlorinated biphenyts or related or similar materials, asbestos or any other substance or material as may now or hereafter be defined as a hazardous or toxic substance by any federal, state or local environmental law, ordinance, rule or regulation, including, without limitation, (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act (42 U.S.C. Section 9601 et seq.), (ii) the Federal Water Pollution Control Act (33 U.S.C. Section 1251 et seq.), (iii) the Clean Air Act (42 U.S.C. Section 7401 et seq.), (iv) the Resource Conservation and Recovery Act, as amended by the Hazardous and Solid Waste Amendments of 1984 (42 U.S.C. Section 6902 et seq.), (v) the Toxic Substances Control Act (15 U.S.C. Section 2601-2629), (vi) the Hazardous Materials Transportation Act (49 U.S.C. Section 5101 et seq.), (vii) the Carpenter -Presley -Tanner Hazardous Substance Account Act (CA Health & Safety Code Section 25300 et seq.), (viii) the Hazardous Waste Control Law (CA Health & Safety Code Section 25100, et seq.), (ix) the Porter -Cologne Water Quality Control Act (CA Water Code Section 13000 et seq.), (x) the Safe Drinking Water and Toxic Enforcement Act of 1986, (xi) the Hazardous Materials Release Response Plans and Inventory (CA Health & Safety Code Section 25500 et seq.), (xii) the Air Resources Law (CA Health & Safety Code Section 39000 et seq.), or (xiii) in any of the regulations adopted and publications promulgated pursuant to the foregoing. In the event that archeological resources are exposed during Project rehabilitation, all earth disturbing work within the Site must be temporarily suspended or redirected until a professional archaeologist has evaluated the nature and significance of the find. After the find has been appropriately mitigated, work in the area may resume. 9.8 Insurance. Without limiting Borrower's indemnification of the CDC or CDC provided above, Borrower shall procure and maintain at its own expense during the Term of the HOME Loan the insurance described below. Such insurance shall be secured from carriers admitted in California or having a minimum rating of or equivalent to A:VIII in Best's Insurance Guide. Borrower shall, concurrent with the execution of this Agreement, deliver to CDC certificates of insurance with original endorsements evidencing the general liability and automobile insurance coverage required by this Agreement. Borrower shall deliver satisfactory evidence of issuance of "all risk" property insurance described in (2) below and worker's compensation insurance described in (3) below at such time that such exposures are at risk, but in no event later than the Close of Escrow. The certificate and endorsements shall be signed by a person authorized by the insurers to bind coverage on its behalf. CDC reserves the right to require complete certified copies of all policies at any time. Said insurance shall be in a form acceptable to CDC and may provide for such deductibles as may be acceptable to CDC. In the event such insurance does provide for deductibles or self-insurance, Borrower agrees that it will protect CDC, its agents, officers and employees in the same manner as these interests would have been protected had full commercial insurance been in effect. Each such certificate shall stipulate that CDC is to be given at least thirty (30) days written notice in advance of any modification or cancellation of any policy of insurance. Borrower shall give the CDC immediate notice of any insurance claim or loss which may be covered by insurance. (a) Liability: Comprehensive liability insurance, including coverage for Loan Agreement — 304 E. .54' St_ Preservation Project — Casa Familiar, Inc. Page 11 personal injury, death, property damage and contractual liability, with a combined single limit of at least One Million Dollars ($1,000,000) for each occurrence ($2,000,000 General Aggregate), including products and completed operations coverage. CDC and their agents,officials and employees shall be named as additional insureds in each of the aforementioned insurance policies with respect to liability arising from activities performed by or on behalf of Borrower, premises owned, leased or used by such persons. Said insurance shall be primary insurance with respect to CDC. Borrower shall require Borrower's contractors to include CDC, the CDC and theirs agents, officials and employees as additional insureds on all general liability insurance covering work at the Site. If required by CDC from time to time, Borrower shall increase the limits of its liability insurance to reasonable amounts customary for owners of improvements similar to the Project. The policy shall contain a waiver of subrogation for the benefit of CDC. (b) Property Insurance: "All Risk" ISO Special Form property insurance, including without limitation builder's risk protection during the course of construction, covering the full replacement value of real property and equipment utilized for the Project. Coverage shall extend to provide debris removal CDC shall be the loss payee under the aforementioned policies under a standard lender's loss payable endorsement. The amount of the property coverage shall at all time exceed the full replacement value of all improvements and fixtures on the Property and the insurer shall waive any coinsurance via an "agreement" endorsement. (c) Worker's Compensation: Borrower's and Borrower's Contractors' employees shall be covered by Workers' Compensation insurance in an amount and form to meet all applicable requirements of the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. (d) Automobile Liability: Combined single limit automobile liability insurance of at least One Million Dollars ($1,000,000) per accident for bodily injury and property damage, covering owned, non -owned and hired vehicles. No modification or waiver of the insurance requirements set forth herein shall be made without the prior written approval of the Executive Director of CDC. Alt subsequent verifications or renewals of the coverage requirements stated above must be sent to the CDC with the following identifying information enclosed in order for these requirements to be deemed satisfied: PROJECT: Casa Quinta Preservation Project ADDRESS: 304 East Fifth St., National CDC, CA 91950 PROJECT NO. 009-02 Failure on the part of Borrower to procure or maintain the insurance coverage required above shall constitute a material breach of this Agreement pursuant to which CDC may immediately terminate this Agreement and exercise all other rights and remedies set forth herein, at its sole discretion, and without waiving such default or limiting the rights or remedies of CDC, procure or renew such insurance and pay any and all premiums in connection therewith and all monies so paid by CDC shall be repaid by the Borrower to CDC upon demand including interest thereon at the Default Rate. The CDC shall have the right, at its election, to participate in and control any insurance claim adjustment or dispute with the Carrier. Borrower's failure to assert or delay in asserting any claim shall not diminish or impair the CDC's rights against the Borrower or Carrier. 9.9 Financial Statements; Tax Returns. Loan Agreement — 304 E. 5"' Sr. Preservation Project — Casa Familiar, Inc. Page 12 Borrower shall deliver to CDC within one hundred twenty (120) days after the end of each fiscal year of Borrower occurring during the term of the HOME Loan, a copy of its federal tax return and a financial statement for such preceding fiscal year. In addition, concurrent with Borrower's payment of the annual Residual Receipts installment payable to CDC on each November 15th in accordance with Section 2.3 above, Borrower shall deliver to CDC, on forms prepared and provided by CDC from time to time, a statement certified by Borrower's accountant (the "Annual Statement"), separately setting forth (i) the aggregate Gross Rents (as defined in the HOME Note) received during the previous calendar year, and (ii) the aggregate Operating Expenses (as defined in the HOME Note) expended during the previous calendar year. 9.10 Other Loans. Borrower shall comply with all monetary and non -monetary covenants associated with any loan secured by an interest in the Site or the Project, including but not limited to the Senior Financing, the Junior Financing and the Other Financing. Borrower shall provide to CDC a copy of any notice of default within three business days after receiving any notice of a default or alleged default of such covenants by Borrower, and Borrower shall promptly cure any such default and cooperate in permitting CDC, to the extent CDC in its sole discretion elects to do so, to cure or assist in curing the default. Any cost or expenditure incurred by CDC in providing or assisting in such a cure shall be deemed added to the outstanding principal amount of the HOME Loan. 9.11 Construction Requirements. Following the Close of Escrow, Borrower shall cause the Project rehabilitation work to commence promptly, proceed diligently, and achieve "Completion of the Project" no later than 18 months following the Close of Escrow, subject to extension for up to an additional 12 months to the extent of force major delays beyond Borrower's reasonable control. "Completion of the Project" shall be deemed to have occurred when CDC has received satisfactory evidence that the Project has been completed in compliance with this Agreement and as represented in Borrower's approved funding application to CDC, and that all final permits and certificates necessary to the operation of the Project as contemplated herein have been obtained, including, without limitation, the following, each of which is subject to CDC's review and approval: (1) a signed certificate from the general contractor, in a form reasonably acceptable to CDC, certifying to the CDC that rehabilitation was completed substantially in accordance with the requirements of the plans and this Agreement, and all other related on -site and off -site improvements have been completed; (2) a certificate of occupancy and other final permits and licenses necessary to permit the use and occupancy of the Project for its intended purposes, which have been issued by proper govemmental agencies; and (3) evidence satisfactory to CDC that the statutory period for the filing of mechanics' liens (60 days following filing of the statutory notice of completion) has expired and the Property is free from such liens. Rehabilitation shall proceed in accordance with Exhibit "L", Construction Requirements and in accordance with the Schedule of Performance Exhibit "Q", and shall conform to the layout and design represented in Borrower's approved application for the Industry Fund Program. Borrower shall comply with any CEQA mitigation measures or other environmental conditions imposed by CDC or any other applicable governmental authority in connection with the Project. 9.12 Schedule of Performance The Borrower shall comply with and meet the deadlines listed in Exhibit "M" to this Loan Agreement — 304 E. 5t St. Preservation Project — Casa Familiar, Inc. Page 13 Agreement, the Schedule of Performance. 9.13 Relocation Requirements. If applicable, Borrower shall be responsible for assuring compliance with all relocation requirements as govemed by federal relocation laws and regulations for projects funded in whole or in part with HOME, including the Federal Uniform Relocation Assistance and Real Property Policies Act (42 U.S.A. 4601 et seq., as amended), and Federal Relocation Regulations (49 CFR Part 24), HUD Relocation Handbook 1378. In circumstances where both federal and state funds are contributed to a program or Project, it is the policy of the CDC to follow the requirements that provide the displaced person or household with the greatest benefit. For example, if in a mixed -funded project, the assistance or benefit under state law is more favorable to the displaced person or household, then the state law applies, and if the opposite is the case, then applicable federal laws and regulations (Califomia Relocation Assistance Law, etc.) shall apply. Any relocation assistance shall be provided through and in the manner directed by the CDC, provided, however, that Borrower shall indemnify, defend and hold harmless the CDC of National CDC ("CDC") for relocation payments, consulting fees and expenses incurred in connection with the Project. At the CDC's election in the CDC's sole discretion, the CDC may hire a relocation consultant to coordinate the relocation. The fees and costs of the consultant shall be paid or reimbursed by Borrower. 9.14 Environmental Conditions Borrower shall comply with any National Environmental Policy Act of 1969 (NEPA) or California Environmental Quality Act (CEQA) mitigation measures or other environmental conditions imposed by CDC or any other applicable governmental authority in connection with the Project, attached hereto as Exhibit "K". 10.0 USE OF PROPERTY; LEASING AND MANAGEMENT. 10.1 Limitations on Tenants. Notwithstanding anything to the contrary in this Agreement, Borrower hereby covenants on behalf of itself, and its successors and assigns, which covenant shall run with the land and bind every successor and assign in interest of Borrower, that, throughout the 15 year term of the CC&Rs, Borrower and such successors and assigns shall use the Site solely for the purpose of rehabilitating and operating the Project as a residential development with the number of dwelling units and, with respect to the units designated to be assisted as consideration for the HOME Loan ("Assisted Units"), 6 HOME -Assisted Units, shall be in accordance with the tenant income levels specified in this Agreement. All Assisted Units shall be rented only at an "Affordable Housing Cost" to "Very -low and Low -Income Households" as hereinafter defined (persons within this group occasionally referred to as "Eligible Persons"). "Very Low -Income Households" shall mean persons and families whose gross annual household incomes do not exceed the qualifying limits for lower income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, which qualifying limits are otherwise set forth in Section 6932 of the California Code of Regulations and are equivalent to fifty percent (50%) of Area Median Income, adjusted for family size and other adjustment factors by the United States Department of Housing and Urban Development (HUD). Loan Agreement — 304 E. 5th Si. Preservation Project — Casa Familiar, Inc. Page 14 "Low -Income Households" shall mean persons and families whose gross annual household incomes do not exceed the qualifying limits for lower income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, which qualifying limits are otherwise set forth in Section 6932 of the Califomia Code of Regulations and are equivalent to sixty percent (60%) of Area Median Income, adjusted for family size and other adjustment factors by the United States Department of Housing and Urban Development (HUD). "Affordable Housing Cost" for a Very -Low Income household shall mean, as to each Eligible Person, a rental rate which results in monthly payments which, including a reasonable utility allowance, do not exceed for an Eligible Person within a Very Low -Income Household, the lesser of the product of thirty percent (30%) times fifty percent (50%) of Area Median Income adjusted for family size appropriate to the Assisted Unit, or the Low HOME Rent established by HUD; and "Affordable Housing Cost" for a Low -Income household shall mean, as to each Eligible Person, a rental rate which results in monthly payments which, including a reasonable utility allowance, do not exceed for an Eligible Person within a Low -Income Household, the lesser of the product of thirty percent (30%) times fifty percent (60%) of Area Median Income adjusted for family size appropriate to the Assisted Unit, or the High HOME Rent established by HUD; and "Area Median Income" shall mean the median income for San Diego Metropolitan Statistical Area, adjusted for family size as periodically adjusted by HUD, or any successor entity designated under state law as responsible for establishing such "Area Median Income." Borrower shall specifically provide in each HOME Assisted Unit lease and shall strictly enforce the requirement that each HOME Assisted Unit be occupied at all times by the eligible household who has leased that HOME Assisted Unit, and that any other occupant of the unit be another qualified member of the lessee's household. The CDC shall be identified as a third party beneficiary of that covenant and shall have the right to directly enforce that restriction in the event Borrower fails to do so. Prior to execution of any HOME Assisted Unit lease with respect to the Project, Borrower shall submit to the CDC and obtain its written approval of a standard form occupancy lease and Borrower shall thereafter use the approved form for all leases of HOME Assisted Units in the Project, with only such further modifications thereto as are first submitted to and approved in writing by the CDC. 10.2 Tenant Selection Process; Reports and Records Concerning Tenancies. Borrower shall maintain such records and satisfy such reporting requirements as may be reasonably imposed by CDC to monitor compliance with the tenanting requirements described in Section 10.1 above, including without limitation the requirement that Borrower deliver reports to CDC commencing at the close of escrow on the Project, and continuing annually thereafter, setting forth the name of each tenant, the unit occupied and the income of the Borrower and the amount of rent payable by each tenant. Borrower shall also be required to have each prospective tenant complete a rental application prior to occupancy and to obtain evidence from each such Borrower as may be reasonably required by CDC to certify such Borrower's qualification for occupancy of the Project. Borrowers obligation to provide such reports shall remain in force and effect for the same duration as the use covenants set forth in Section 10.1. 10.3 Management of Project. Loan Agreement — 304 E. 5*St. Preservation Project — Casa Familiar, lnc. Page 15 Subject to the terms and conditions contained herein below, Borrower shall at all times during the operation of the Project pursuant to this Agreement either manage the project itself or retain an entity to perform the management and/or supervisory functions ("Manager") with respect to the operation of the Project including day-to-day administration, maintenance and repair_ If applicable, Borrower shall, before execution or any subsequent amendment or replacement thereof, submit and obtain CDC's written approval of a management contract (Management Contract") entered into between Borrower and an entity ("Management Entity") acceptable to CDC. If applicable, and subject to any regulatory or licensing requirements of any other applicable govemmental agency, the Management Contract may be for a term of up to fifteen (15) years and may be renewed for successive terms in accordance with its terms, but may not be amended or modified without the written consent of CDC. The Management Contract shall also provide that the Management Entity shall be subject to termination for failure to meet project maintenance and operational standards set forth herein or in other agreements between Borrower and CDC. Borrower shall promptly terminate any Management Entity which commits or allows such failure, unless the failure is cured within a reasonable period in no event exceeding 60 days from Management Entity's receipt of notice of the failure from Borrower or CDC. Borrower's obligation to retain a Management Entity shall remain in force and effect for the same duration as the use covenants set forth in Section 10.1. 10.4 Operations and Maintenance. Borrower hereby covenants on behalf of itself, and its successors and assigns, which covenant shall run with the land and bind every successor and assign in interest of Borrower, that Borrower and such successors and assigns shall use the Site solely for the purpose of operating the Project and ancillary improvements thereon, in accordance with and of the quality prescribed by this Agreement, the CC&Rs and the HOME Deed of Trust. Borrower covenants and agrees for itself, its successors and assigns, which covenants shall run with the land and bind every successor or assign in interest of Borrower, that during rehabilitation of the Site pursuant to this Agreement and thereafter, neither the Site nor the Project, nor any portion thereof, shall be improved, used or occupied in violation of any Applicable Govemmental Restrictions or the restrictions contained in this Agreement or the HOME Deed of Trust. Furthermore, Borrower and its successors and assigns shall not maintain, commit, or permit the maintenance on the Site or in the Project, or any portion thereof, of any nuisance, public or private, as now or hereafter defined by any statutory or decisional law applicable to the Site or the Project, or any portion thereof. Borrower shall, at its expense, (i) maintain all improvements and landscaping on the Site in good working order, condition, and repair (and, as to landscaping, in a healthy and thriving condition) in accordance with the plans for the Project (which must be approved by the CDC before being incorporated into the Construction Contract) (such approved plans, the "Plans") and all Applicable Governmental Restrictions, and (ii) manage the Project and Project finances prudently and in compliance with Applicable Governmental Restrictions so as to maintain a safe and attractive living environment for Project residents while maximizing Residual Receipts to the extent reasonably possible consistent with applicable rent and tenant requirements (including all recorded rent restrictions affecting the Project) and without compromising the safety and attractiveness of the living environment of the Project. Loan Agreement — 304 E. 5tSt. Preservation Project —Casa Familiar, Inc. Page 16 11.0 BORROWER'S OBLIGATION TO REFRAIN FROM DISCRIMINATION. There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex or sexual orientation, marital status, age, medical condition, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, nor shall Borrower itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of Borrowers, lessees, subBorrowers, sublessees, or vendees of the Site or any portion thereof. The nondiscrimination and nonsegregation covenants set forth herein shall remain in effect in perpetuity. 11.1 Form of Nondiscrimination and Nonsegregation Clauses. Borrower shall refrain from restricting the rental, sale or lease of the Site or any portion thereof on the basis of race, color, creed, religion, sex or sexual orientation, marital status, age, medical condition, national origin, or ancestry of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or non -segregation clauses: (a) In deeds: "The grantee herein covenants by and for himself or herself, and his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex or sexual orientation, marital status, age, medical condition, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the land herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of Borrowers, lessees, sub -Borrowers, sub -lessees, or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (b) In leases: "The lessee herein covenants by and for himself or herself, and his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex or sexual orientation, marital status, age, medical condition, national origin, or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the land herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of Borrowers, lessees, sub -lessees, sub -Borrowers, or vendees in the land herein leased." (c) In contracts: "There shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex or sexual orientation, marital status, age, medical condition, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the parties to this contract or any person claiming under or through them, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of Borrowers, lessees, sub -Borrowers, sub -lessees, or vendees of the premises." Nothing in this Section shall be construed or understood to limit, restrict or in any way Loan Agreement 304 E. 5tSt. Preservation Project — Casa Familiar, Inc. Page 17 waive the income requirements described in this Agreement. 12.0 CDC REQUIREMENTS Borrower shall comply with the provisions of Exhibit "G" - CDC Requirements. 13.0 INDEPENDENT CONTRACTOR. In their performance of this Agreement, all parties hereto will be acting in an independent capacity and not as agents, employees, partners, joint venturers, or associates of one another. The employees or agents of one party shall not be deemed or construed to be the agents or employees of the other party for any purpose whatsoever, including workers' compensation liability. Borrower shall bear the sole responsibility and liability for fumishing or causing its general contractor to furnish workers' compensation benefits to any person for injuries arising from or connected with services performed on behalf of Borrower pursuant to this Agreement. 14.0 ASSIGNMENT OF THIS AGREEMENT. This Agreement shall be assignable by Borrower only if Borrower obtains the prior express written consent of the CDC or the CDC's Executive Director, which consent may be withheld by the CDC in its sole discretion. Notwithstanding anything to the contrary in this Agreement, no purported assignment of this Agreement and the HOME Loan shalt be effective if such assignment would violate the terms, conditions and restrictions of any Applicable Governmental Restrictions. CDC's consent to such assignment shall be expressly conditioned upon (i) the assignee's execution of such documents as required by CDC at its sole discretion including, without limitation, any and all documents deemed necessary by CDC to provide for said assignee's assumption of all of the obligations of Borrower hereunder and under the HOME Loan Documents, and (ii) CDC's approval of the financial and credit worthiness of such proposed assignee and the assignee's ability to perform all of the Borrower's obligations under this Agreement, the HOME Note, and all other Loan Documents. Any attempt by Borrower to assign any performance or benefit under the terms of this Agreement, without the prior written consent of the CDC as provided herein, shall be null and void and shall constitute a material breach of this Agreement. In accordance with the foregoing, in the event of (i) a sale or transfer of Borrower's interest in the Site, or (ii) a sale or transfer of more than forty-nine percent (49%) of its present ownership and/or control, in the aggregate, taking all transfers into account on a cumulative basis, or (iii) a sale or transfer of the Project, occurring without the written consent of CDC, CDC may, at its option, by written notice to Borrower, declare Borrower in default under this Agreement. Notwithstanding the foregoing, if the Project receives funding through an allocation of state or federal low-income housing tax credits, the CDC hereby consents to the following transfers in furtherance of such financing: (i) syndication of limited partnership interest in Borrower to an equity investor; (ii) grant of a purchase option and/or right of first refusal with respect to the Project from Borrower to its general partners and (iii) removal of any general partner of Borrower pursuant to the terms of the limited partnership agreement of Borrower, as may be amended from time to time, provided that any replacement general partner is approved by CDC, 15.0 EVENTS OF DEFAULT AND REMEDIES. 15.1 Borrower Events of Default. Loan Agreement — 309 C. _516 St. Preservation Project — Casa Familiar, Inc. Page 18 The occurrence of any of the following shall, after the giving of any notice and the expiration of any applicable cure period described therein, constitute an event of default by Borrower hereunder ("Event of Default"): (a) The failure of Borrower to pay or perform any monetary covenant or obligation hereunder or under the terms of the HOME Note or the HOME Deed of Trust, without curing such failure within ten (10) days after the date such payment is due. Notwithstanding anything herein to the contrary, the herein described cure period shall not apply to a failure by Borrower to timely repay the HOME Loan at the Maturity Date of the HOME Note; (b) The failure of Borrower to perform any nonmonetary covenant or obligation hereunder or under the terms of the HOME Note or the HOME Deed of Trust, without curing such failure within thirty (30) days after receipt of written notice of such default from CDC (or from any party authorized by CDC to deliver such notice as identified by CDC in writing to Borrower) specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency; provided, however, that if any default with respect to a non -monetary obligation is such that it cannot be cured within a thirty (30) day period, it shall be deemed cured if- Borrower commences the cure within said thirty (30) day period and diligently prosecutes such cure to completion thereafter with the cure completed in any event within 180 days after the notice. Notwithstanding anything herein to the contrary, the herein described notice requirements and cure period shall not apply to any Event of Default described in Sections 15.1(c) through 15.1(g) below; (c) The material falsity of any representation or breach of any warranty or covenant made by Borrower under the terms of this Agreement, the HOME Note, or the HOME Deed of Trust; (d) Borrower or any constituent member or partner, or majority shareholder, of Borrower shall (a) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian or the like of its property, (b) fail to pay or admit in writing its inability to pay its debts generally as they become due, (c) make a general assignment for the benefit of creditors, (d) be adjudicated a bankrupt or insolvent or (e) commence a voluntary case under the Federal bankruptcy laws of the United States of America or file a voluntary petition that is not withdrawn within ten (10) days of the filing thereof or answer seeking an arrangement with creditors or an order for relief or seeking to take advantage of any insolvency law or file an answer admitting the material allegations of a petition filed against it in any bankruptcy or insolvency proceeding; (e) If without the application, approval or consent of Borrower, a proceeding shall be instituted in any court of competent jurisdiction, under any law relating to bankruptcy, in respect of Borrower or any constituent member or partner, or majority shareholder, of Borrower, for an order for relief or an adjudication in bankruptcy, a composition or arrangement with creditors, a readjustment of debts, the appointment of a trustee, receiver, liquidator or custodian or the Like of Borrower or of all or any substantial part of Borrower's assets, or other like relief in respect thereof under any bankruptcy or insolvency law, and, if such proceeding is being contested by Borrower, in good faith, the same shall (a) result in the entry of an order for relief or any such adjudication or appointment, or (b) continue undismissed, or pending and unstayed, for any period of ninety (90) consecutive days; Loan Agreement — 304 L. 5t St. Preservation Project — Casa Familiar, Inc. Page 19 (f) Following completion of the Project, voluntary cessation of the operation of the Project for a continuous period of more than thirty (30) days or the involuntary cessation of the operation of the Project in accordance with this Agreement for a continuous period of more than sixty (60) days; (g) Borrower shall suffer or attempt to effect a Transfer (as defined below) in violation of Section 14.0 above or Section 29.0 below; or (h) Borrower shall be in default under the CC&Rs, the Senior Financing, the Junior Financing, the Other Financing, the Supportive Services Agreement, if any, or any other secured or unsecured obligation relating to the Project, unless the default is cured within the cure period, if any, applicable thereto under the terms of the obligation which is in default. (i) Notwithstanding anything to the contrary contained herein, CDC shall give to Casa Familiar, Inc., at the address set forth in Section 21 herein a duplicate copy of all notices of default or other notices that CDC may give to or serve in writing upon Borrower pursuant to the terms of this Agreement or applicable law based upon an alleged default hereunder. Prior to CDC declaring any default or taking any remedy permitted under this Agreement or applicable law based upon an alleged default hereunder, Casa Familiar, Inc., and their respective successors and assigns (collectively, "Casa Familiar, Inc.") shall have a period of ten (10) days from receipt of written notice to cure monetary defaults and a period of thirty (30) days from receipt of written notice to cure nonmonetary defaults, as described in Sections 15.1 (a) and 15.1 (b) above. 15.2. CDC Remedies. Upon the occurrence of an Event of Default hereunder, CDC may, in its sole discretion, take any one or more of the following actions: (a) By notice to Borrower declare the entire then unpaid principal balance of the HOME Loan immediately due and payable, and the same shall become due and payable without further demand, protest or further notice of any kind, all of which are expressly waived. Upon such declaration, outstanding principal and (to the extent permitted by law) interest and any other sums outstanding in connection with the HOME Loan shall thereafter bear interest at the Default Rate, payable from the date of such declaration until paid in full; (b) Subject to the nonrecourse provisions of Section 5 above, take any and all actions and do any and all things which are allowed, permitted or provided by law, in equity or by statute, in the sole discretion of CDC, to collect the amounts then due and thereafter to become due hereunder and under the HOME Note, to exercise its rights under the HOME Deed of Trust, and to enforce performance and observance of any obligation, agreement or covenant of the Borrower under this Agreement or under any other document executed in connection herewith; (c) Subject to the nonrecourse provisions of Section 5 above, upon the occurrence of an Event of Default which is occasioned by Borrower's failure to pay money, whether under this Agreement or the HOME Note, CDC may, but shall not be obligated to, make such payment. If such payment is made by CDC, Borrower shall Loan Agreement — 304 E. 5th St. Preservation Project — Casa Familiar, Inc. Page 20 deposit with CDC, upon written demand therefor, such sum plus interest at the Default Rate of ten percent (10%) per annum. The Event of Default with respect to which any such payment has been made by CDC shall not be deemed cured until such repayment (as the case may be) has been made by Borrower. Until repaid, such amounts shall have the security afforded disbursements under the HOME Note; (d) Subject to the nonrecourse provisions of Section 5 above, upon the occurrence of an Event of Default described in Section 15.1(d) or 15.1(e) hereof, CDC shall be entitled and empowered by intervention in such proceedings or otherwise to file and prove a claim for the whole amount owing and unpaid on the HOME Loan and, in the case of commencement of any judicial proceedings, to file such proof of claim and other papers or documents as may be necessary or advisable in the judgment of CDC and its counsel to protect the interests of CDC and to collect and receive any monies or other property in satisfaction of its claim. 15.3_ No Remedy Exclusive. No remedy herein conferred upon or reserved to CDC is intended to be exclusive of any other available remedy or remedies, but each such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now existing at law or hereafter in equity or by statute; and may be exercised in such number, at such times and in such order as CDC may determine in its sole discretion. No delay or omission to exercise any right or power upon the occurrence of any Event of Default hereunder shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient by CDC. In order to entitle CDC to exercise any right or remedy reserved to it under this Agreement, no notice shall be required except as expressly provided herein. 15.4. CDC Default and Borrower Remedies. Upon fault or failure of CDC to meet any of its obligations under this Agreement without curing such failure within thirty (30) days after receipt of written notice of such failure from Borrower specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency, Borrower may, as its sole and exclusive remedies: (a) Demand and obtain payment from CDC of any sums due to or for the benefit of Borrower pursuant to the express terms of this Agreement; (b) Bring an action in equitable relief seeking the specific performance by CDC of the terms and conditions of this Agreement or seeking to enjoin any act by CDC which is prohibited hereunder; or (c) Bring an action for declaratory relief seeking judicial determination of the meaning of any provision of this Agreement. Without limiting the generality of the foregoing, Borrower shall in no event be entitled to, and hereby waives, any right to seek indirect or consequential damages of any kind or nature from CDC arising out of or in connection with this Agreement, and in connection with such waiver Borrower is familiar with and hereby waives the provisions of Section 1542 of the California Civil Code which provides as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH IF KNOWN BY HIM MUST Loan Agreement — 304 E 5tSt. Preservation Project — Casa Familiar, Inc. Page 21 HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." 16.0 AGREEMENT REGARDING PAYMENT FOR SERVICES. As one of the conditions to disbursement of the HOME Loan to Borrower under Section 6 above, Borrower shall execute an Agreement Regarding Payment for Services in the form of Exhibit "0" attached hereto, which Agreement Regarding Payment for Services sets forth terms and conditions for the payment of the CDC services to the project. 17.0 RIGHT OF ACCESS AND INSPECTION. CDC shall have the right at any time during normal business hours and from time to time to enter upon the Site for purposes of inspection. If CDC in its reasonable discretion determines that the project is not being operated in conformity with this Agreement, or any applicable Govemmental Restrictions, CDC may at its election, after notice to and consultation with the Borrower and affording the Borrower thirty (30) days after such notice to cure the matter (provided, however, that if such matter cannot be cured within a 30-day period, it shall be deemed cured if Borrower commences the cure within said 30-day period and diligently prosecutes such cure to completion thereafter with the cure completed in any event within 180 days of the notice) and the Borrower fails to cure the matter, itself cure the matter. Inspection by CDC of the Project or the Site is not to be construed as an acknowledgment, acceptance or representation by CDC that there has been compliance with any terms or provisions of this Agreement. 18.0 CONFLICT OF INTEREST; NO INDIVIDUAL LIABILITY. No official or employee of CDC shall have any personal interest, direct or indirect, in this Agreement, nor shall any official or employee of CDC participate in any decision relating to this Agreement which affects such official's or employee's pecuniary interest in any corporation, partnership or association in which such official or employee is directly or indirectly interested. No official or employee of CDC shall be personally liable in the event of a breach of this Agreement by CDC. 19.0 AMENDMENTS, CHANGES AND MODIFICATIONS. This Agreement may not be amended, changed, modified, altered or terminated without the prior written consent of the parties hereto. 20.0 EXECUTION OF COUNTERPARTS. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute one and the same document. 21.0 NOTICES. All notices, demands, requests, elections, approvals, disapprovals, consents or other communications given under this Agreement shall be in writing and shall be given by personal delivery, facsimile, certified mail (return receipt requested), or overnight guaranteed delivery service and addressed or faxed as follows: Loan Agreement — 304 E. 5tSt. Preservation Project — Casa Familiar, Inc. Page 22 If to CDC: If to Borrower: CDC of National CDC 1243 National CDC Boulevard National CDC, California 91950 Attn: Executive Director Casa Familiar, Inc. 119 W. Hall Street San Ysidro, CA 92037 Attn: President & CEO Notices shall be effective upon receipt, if given by personal delivery; upon receipt if faxed, provided there is a written confirmation of receipt (except that if received after 5 p.m., notice shall be deemed received on the next business day); the earlier of (i) three (3) business days after deposit with United States Mail; or (ii) the date of actual receipt as evidenced by the return receipt, if delivered by certified mail; or (iii) one (1) day after deposit with the delivery service, if delivered by ovemight guaranteed delivery service. Each party shall promptly notify the other party of any change(s) of address or fax to which notice shall be sent pursuant to this Agreement. 22.0 SEVERABILITY. The invalidity or unenforceability of any one or more provisions of this Agreement will in no way affect the validity or enforceability of any other provision. 23.0 INTERPRETATION. Whenever the context requires, all words used in the singular will be construed to have been used in the plural, and vice versa, and each gender will include any other gender. The captions of the paragraphs of this Agreement are for convenience only and do not define or limit any terms or provisions. Time is of the essence in the performance of this Agreement by Borrower. Each Party has been represented by counsel in the negotiation of this Agreement, and it shall not be interpreted in favor of or against any Party on account of relative responsibilities in drafting. Notwithstanding any other provision of this Agreement, nothing herein or in the HOME Note shall be deemed to require Borrower to pay interest in the amount of any applicable usury law or other legal limitation on interest, and the terms hereof and of the HOME Note shall be interpreted to require in each instance the lesser of (i) the amount stated in the HOME Note; and (ii) the maximum applicable legal limit. Attached hereto for the convenience of the Parties as Exhibit "A" is a directory indicating the location of definitions for certain defined terms used in this Agreement. 24.0 NO WAIVER; CONSENTS. Any waiver by CDC must be in writing and will not be construed as a continuing waiver. No waiver will be implied from any delay or failure by CDC to take action on account of any default of Borrower. Consent by CDC to any act or omission by Borrower will not be construed to be a consent to any other or subsequent act or omission or to waive the requirement for CDC's consent to be obtained in any future or other instance. Loan Agreement — 304 E.?St. Preservation Project — Casa Familiar, Inc. Page 23 25.0 APPLICABLE POLICIES. A. Goveminq Law. This Agreement shall be govemed by the laws of the State of Califomia. B. Compliance with Laws. Borrower agrees to be bound by applicable federal, state, and local laws, regulations and directives as they pertain to the performance of the Agreement. This Agreement is subject to and incorporates the terms of the Housing and Community Development Act of 1974, as amended by the Cranston -Gonzales National Affordable Housing Act, 1990 and the 24 Code of Federal Regulations (CFR) Part 85. C. HOME Program and Federal Requirements. In addition to any other obligations of the Borrower to this Agreement, the Borrower agrees to comply with all of the HOME Program Requirements, a summary of which is included as Exhibit T. 26.0 REPRESENTATIONS AND WARRANTIES OF BORROWER. Borrower hereby warrants and represents to CDC that: A. Organization and Standing. Borrower is a legal entity as described in the Transaction Summary above, duly organized, qualified to operate in Califomia and validly existing and in good standing in the State of California and has all requisite power and authority to enter into and perform its obligations under this Agreement, the HOME Note, the HOME Deed of Trust, the CC&Rs, and all other documents executed in connection herewith. B. Enforceability. This Agreement, the HOME Note, the HOME Deed of Trust, the CC&Rs, and all other instruments to be executed by Borrower in connection with the HOME Loan constitute the legal, valid and binding obligation of Borrower, without joinder of any other party. C. Authorization and Consents. The execution, delivery and performance of this Agreement and all other instruments to be executed in connection herewith is consistent with the operating agreement, partnership agreement, or articles and bylaws goveming Borrower, and have been duly authorized by all necessary action of Borrower's members, partners, directors, officers and shareholders. D. Due and Valid Execution. This Agreement and all other instruments to be executed in connection herewith, will, as of the date of their execution, have been duly and validly executed by Borrower. E. Licenses. Loan Agreement — 304 E 5t St. Preservation Project — Casa Familiar, Inc. Page 24 Borrower will obtain and maintain all material licenses, permits, consents and approvals required by all applicable governmental authorities to own and operate the Project. F. Litigation and Compliance. There are no suits, other proceedings or investigations pending or threatened against, or affecting the business or the properties of Borrower (other than those as have been previously disclosed in writing to CDC) which could materially impair its ability to perform its obligations under this Agreement, nor is Borrower in violation of any laws or ordinances which could materially impair Borrower's ability to perform its obligations under this Agreement. G. Default. There are no facts now in existence which would, with the giving of notice or the lapse of time, or both, constitute an "Event of Default" hereunder, as described in Section 15. H. No Violations. The execution and delivery of this Agreement, the HOME Note, and all other documents executed or given hereunder, and the performances thereunder by Borrower, as applicable, will not constitute a breach of or default under any instrument or agreement to which Borrower may be a party nor will the same constitute a breach of or violate any law or governmental regulation. 1. No Affiliation With Lenders. Borrower is no under common ownership or is otherwise affiliated with any lender extending any Project Loan (as defined in the HOME Note). 27.0 APPROVALS. Any consent to a transfer under Section 14 or 29 of this Agreement, and any other consent or approval by the CDC under this Agreement or any of the Loan Documents, may be given by the CDC's Executive Director without action of the CDC's goveming board unless the Executive Director in his or her sole discretion elects to refer the matter to the CDC's goveming board. Except with respect to those matters set forth hereinabove providing for the CDC's approval, consent or determination to be at the CDC's "sole discretion" or "sole and absolute discretion," the CDC hereby agrees to act reasonably with regard to any approval, consent, or other determination given by the CDC hereunder. The CDC agrees to give Borrower written notice of its approval or disapproval following submission of items to the CDC for approval, including, in the case of any disapproved item, the reasons for such disapproval. Any review or approval of any matter by the CDC or any CDC official or employee under this Agreement shall be solely for the benefit of the CDC, and neither Borrower nor any other person shall rely upon such review or approval as an indication of the wisdom, soundness, safety, appropriateness, or presence or absence of any matter. Without limiting the generality of the foregoing, Borrower and not the CDC shall be solely responsible for assuring compliance with laws, and the operation of the project. Loan Agreement - 304 E. 5m St. Preservation Project - Casa Familiar, Inc. Page 25 28.0 GOOD FAITH AND FAIR DEALING. CDC and Borrower agree to perform all of their obligations and the actions required of each hereunder in good faith and in accordance with fair dealing. 29.0 ASSIGNMENT OF INTEREST IN THE SITE OR THE PROJECT. 29.1 Without the prior written approval of the CDC (or the CDC's Executive Director), which approval the CDC may withhold in its sole and absolute discretion, Borrower shall not (i) sell, encumber, assign or otherwise transfer (collectively, 'Transfer") all or any portion of its interest in the Site or the Project (excluding Borrower leases pursuant to the terms hereof), (ii) permit the Transfer of greater than 49% of its ownership and/or control, in the aggregate, taking all transfers into account on a cumulative basis; or (iii) Transfer any of its rights or obligations under the HOME Loan Documents. Notwithstanding the foregoing, CDC hereby consents to the events described in the last paragraph of Section 14.0 hereof, if applicable, without Borrower obtaining any further consent from CDC. Borrower hereby agrees that any purported Transfer not approved by CDC as required herein shall be ipso facto null and void, and no voluntary or involuntary successor to any interest of Borrower under such a proscribed Transfer shall acquire any rights pursuant to this Agreement. 29.2 At any time Borrower desires to effect a Transfer hereunder, Borrower shall notify CDC in writing (the "Transfer Notice") and shall submit to CDC for its prior written approval (i) all proposed agreements and documents (collectively, the "Transfer Documents") memorializing, facilitating, evidencing and/or relating to the circumstances surrounding such proposed Transfer, and (ii) a certificate setting forth representations and warranties by Borrower and the proposed transferee to CDC sufficient to establish and insure that all requirements of this Section 29 have been and will be met. No Transfer Documents shall be approved by CDC unless they expressly provide for the assumption by the proposed transferee of all of Borrower's obligations under the HOME Loan Documents. The Transfer Notice shall include a request that CDC consent to the proposed Transfer. CDC agrees to make its decision on Borrower's request for consent to such Transfer, as promptly as possible, and, in any event, not later than thirty (30) days after CDC receives the last of the items required by this Section 29 In the event CDC consents to a proposed Transfer, then such Transfer shall not be effective unless and until CDC receives copies of all executed and binding Transfer Documents which Transfer Documents shall conform with the proposed Transfer Documents originally submitted by Borrower to CDC. From and after the effective date of any such Transfer, Borrower shall be released from its obligations under the HOME Loan Documents accruing subsequent to such effective date. 29.3 Notwithstanding anything in this Agreement, Borrower agrees that it shall not be permitted to make any Transfer, whether or not CDC consent is required therefore and even if CDC has consented thereto, if there exists an Event of Default under this Agreement at the time the Transfer. Notice is tendered to CDC or at any time thereafter until such Transfer is to be effective. 29.4 The provisions of this Section 29 shall apply to each successive Transfer and proposed transferee in the same manner as initially applicable to Borrower under the terms set forth herein. 30.0 ACCESS AND RETENTION OF RECORDS. Loan Agreement — 304 E. Sth St. Preservation Project — Casa Familiar, Inc. Page 26 Borrower shall provide access to the CDC, the Federal Grantor agency, the Comptroller General of the United States, or any of their duly authorized representatives to any books, documents, papers and records of the Borrower which are directly pertinent to this Agreement for the purpose of making audits, examinations, excerpts and transcriptions. The Borrower is required to retain the aforementioned records for a period of five years after the CDC pays the final payment and other pending matters are closed under this Agreement. Records described in Section 10.2 concerning tenancies shall be retained for at least 5 years after the due date (with extensions) for filing the federal income tax return for that year. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date and year first above written. CDC: COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY, a Public Body Corporate and Politic By: Brad Raulston, Executive Director APPROVED AS TO FORM: CDC Attomey By: George H. Eiser, III, CDC Attorney BORROWER: (Signatures of Two Corporate Officers Required) CASA FAMILIAR, INC., a California nonprofit public benefit corporation By: Andrea Skorepa, Its: President & CEO By: L vd By: Loan Agreement — 304 E. 5th St_ Preservation Project —Casa Familiar, Inc. Page 27 EXHIBIT "A" EXHIBIT "B" EXHIBIT "C" EXHIBIT "D" EXHIBIT "E" EXHIBIT "F" EXHIBIT "G" EXHIBIT "H" EXHIBIT "1" EXHIBIT "J" EXHIBIT "K" EXHIBIT "L" EXHIBIT "M" EXHIBIT "N" EXHIBIT "0" TABLE OF EXHIBITS DIRECTORY OF DEFINED TERMS SITE LEGAL DESCRIPTION HOME PROMISSORY NOTE HOME DEED OF TRUST COVENANTS, CONDITIONS, AND RESTRICTIONS PROJECT DESCRIPTION CDC REQUIREMENTS APPROVED REHABILITATION BUDGET HOME PROGRAM REQUIREMENTS CHARITABLE CONTRIBUTION CERTIFICATE ENVIRONMENTAL SPECIAL CONDITIONS CONSTRUCTION REQUIREMENTS SCHEDULE OF PERFORMANCE SUPPORTIVE SERVICES AGREEMENT AGREEMENT REGARDING PAYMENT FOR SERVICES Loan Agreement — 304 E 5`"St. Preservation Project —Casa Familiar, Inc. Page 28 EXHIBIT "A" TO LOAN AGREEMENT DIRECTORY OF DEFINED TERMS Each of the following terms is defined in the section of the Loan Agreement referenced in parentheses. Affordable Housing Cost (Section 10.1) Agreement (preamble) Agreement Regarding Payment for Services (Section 16) Annual Statement (Section 9.9) Applicable Percentage (Section 2.4) Area Median Income (Section 10.0) Assignment (Section 2.4) Basic Interest (Section 2.2 Borrower (preamble) CC&Rs (Section 6.2(c)) Certificate of Occupancy (Section 8.2(b)) Claims (Section 9.4) Close of Escrow (Section 6.4) Closing Conditions (Section 6.2) Closing Deadline (Section 6.2) Commission (preamble) Completion of the Project (Section 9.11) Construction Contract (Section 6.2(i)) Default Rate (Section 2.2) Developer Fee (Section 8.3) Escrow (Section 6.1) Escrow Holder (Section 6.1) Event of Default (Section 15.1) General Contractor (Section 6.2(i)) Governmental Restrictions (Section 9.1) Gross Rents (Section 9.9) Hazardous Materials (Section 9.7) HOME Deed of Trust (Section 5) HOME Loan (Recital A) HOME Maturity Date (Section 2.3) HOME Note (Section 2.1) Junior Financing (Recital B) Loan Documents (Section 6.2(e)) Management Contract (Section 10.3) Management Entity (Section 10.3) Manager (Section 10.3) Maturity Date (Section 2.3) Net Proceeds (Section 2.4) Net Refinancing Proceeds (Section 2.4) Operating Expenses (Section 9.9) Other Financing (Recital B) Parties (preamble) Party (preamble) Payment Dates and Amounts (Section 2.3) Permitted Senior Encumbrances (Section 6.2(f)) Project (Recital A) Refinancing (Section 2.4) Residual Receipts (Section 2.3) Senior Financing (Recital B) Site (Recital A) Title Company (Section 6.2(f)) Transfer (Section 29.1) Transfer Documents (Section 29.2) Transfer Notice (Section 29.2) Very Low -Income (Section 10.1) EXHIBIT "B" SITE LEGAL DESCRIPTION Legal Description of 304 East Fifth, National City, CA Real property in the City of National City, County of San Diego, State of California, described as follows: LOTS 1, 2 AND 3 AND THE NORTH HALF OF LOT 4 IN BLOCK 4 OF J.D. O'CONNELL'S SUBDIVISION OF THE EAST HALF OF THE 10 ACRE TRACT 6, IN QUARTER SECTION 155 OF RANCHO DE LA NACION, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO, 468, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JANUARY 24, 1888. APN: 556-214-01-00 EXHIBIT "C" TO LOAN AGREEMENT PROMISSORY NOTE (HOME FUND - PROJECT NO.009-02) $835,000 _August 25, 2009 For value received, the undersigned, Casa Familiar, Inc., a California non-profit public benefit corporation ("Borrower"), , whose principal address is set forth hereinbelow, promises to pay to the order of the CITY OF NATIONAL CITY, a public body corporate and politic ("City") at 1243 National City Boulevard, National City, CA 91950 (or to such designee and/or at such other address as the City may from time to time designate in writing), the principal sum of EIGHT HUNDRED THIRTY-FIVE THOUSAND DOLLARS ($835,000) (the "Loan"), or such amount as may be advanced hereunder, plus accrued and unpaid interest as provided hereinbelow, and all other charges due hereunder, in accordance with the terms and conditions of that certain Loan Agreement dated as of , entered into between Borrower and the City (the "Loan Agreement"), and the terms and conditions of this Promissory Note (this "Note"). As set forth in greater detail in the Loan Agreement, the purpose of the Loan is to provide Borrower with acquisition, rehabilitation and ;permanentfinancing in connection with a housing project ("Project") on a site more particularly described in the Loan Agreement ("Site"). 1. Interest. 1.1 Basic Interest. Except as provided in Section 1.4 below, the disbursed and unpaid principal balance of the Loan shall bear interest commencing on the date on which the Loan proceeds are first disbursed for the account of Borrower, and ending on the date paid, at the rate of two percent (2%) per annum, simple interest ("Basic Rate"). Interest shall be computed on the basis of actual number of days elapsed and a 360-day year. 1.2 Payment Dates and Amounts. Except as otherwise provided in this Note, Borrower shall repay the Loan, together with accrued interest at the Basic Rate in arrears, in annual installments on November 15th of each calendar year for the previous fiscal year from July 15t to June 30tF . The first such installment shall be due on November 15, 2010. Absent prepayment or acceleration, each of the annual payments due November 15, 2010 through and including November 15, 2065 ("Maturity Date") shall be in an amount equal to the prorata share (taking into account all "soft financing" of thirty-three percent (33.0%) of "Residual Receipts" for the prior fiscal year, as defined herein. Residual Receipts shall be calculated and reported to the City annually for each fiscal year no later than November 15th of that year on forms specified and provided by the City from time to time. All calculations and records are subject to audit by the City. Notwithstanding any other provision of this Note, unless due sooner, the entire outstanding principal balance of the Loan together with any outstanding interest and any other sums payable under this Note shall be due and payable in full on the Maturity Date. 1.3 Calculation of Residual Receipts. Borrower shall provide to the City for inspection and copying any records, receipts, account books, ledgers, checks, or other documents or other evidence requested by the City for the purpose of verifying Borrower's calculation of Residual Receipts, and shall promptly pay to the City any further amount due but not paid as a result of any miscalculation by Borrower. In no event shall any Loan payment attributable to an Event of Default (as hereafter defined) or acceleration be deferred. 1.4 Default Rate. Any amounts (including but not limited to amounts of principal and interest on the Loan) which Borrower does not pay when due under the terms of the Loan Agreement or this Note shall bear interest at the rate of ten percent (10%) per annum, simple interest ("Default Rate"), from the date due until the date paid. 1.5 Definition of Residual Receipts. 1.5.1 "Residual Receipts" shall mean, with respect to each calendar year, the amount by which "Gross Rents," as defined herein, for such calendar year exceed the "Operating Expenses", as defined herein, for that calendar year. 1.5.2 With the exception of the "Excluded Items" (as defined below), "Gross Rents" shall mean, with respect to each calendar year or portion thereof, all gross income, rentals, revenues, payments and consideration, of whatever form or nature, whether direct or indirect, received by or paid to or for the account or benefit of Borrower or any "Affiliate" (as defined below) of Borrower or any of their agents or employees, from any and all sources, resulting from or attributable to the ownership, operation, leasing and occupancy of the Project, determined on the basis of generally accepted accounting principles applied on a consistent basis, and shall include, but not be limited to: (i) gross rentals paid by occupancy tenants of the Project under occupancy leases and payments and subsidies of whatever nature, including without limitation any payments, vouchers or subsidies from the United States Department of Housing and Urban Development (HUD) or any other person or organization, received on behalf of tenants under occupancy leases, (ii) amounts paid to Borrower or any Affiliate of Borrower on account of "Operating Expenses" (as defined herein) for further disbursement by Borrower or such Affiliate to a third party or parties, (iii) late charges and interest paid on rentals, (iv) rents and receipts from licenses, concessions, vending machines, coin laundry and similar sources; (v) other fees, charges or payments not denominated as rental but payable to Borrower in connection with the rental of office, retail, storage, or other space in the Project; and (vi) consideration received in whole or in part for the cancellation, modification, extension or renewal of occupancy leases. The term "Affiliate" shall mean any person or entity directly or indirectly, through one or more intermediaries, controlling, controlled by or under common control with Borrower which, if Borrower is a partnership or limited liability company, shall include each of the constituent members or partners, respectively, thereof. The term "control" as used in the immediately preceding sentence, means, with respect to a person that is a corporation, the right to exercise, directly or indirectly, more than 50% of the voting rights attributable to the shares of the controlled corporation, and, with respect to a person that is not a corporation, possession directly or indirectly of the power to direct or cause the direction of the management or policies of the controlled person. Notwithstanding the foregoing, Gross Rents shall not include the following items ("Excluded Items"): (aa) security deposits from tenants (except when applied by Borrower to rent or other amounts owing by tenants); (bb) capital contributions to Borrower or its members, ; (cc) condemnation or insurance proceeds constituting 'Net Proceeds' as defined in Section 1.6 below; and (dd) funds received from any source (including but not limited to the Senior Financing and any Junior Financing or Other Financing) actually and directly used for acquisition and/or initial development of the Project. 1.5.3 "Operating Expenses" shall mean, with respect to each calendar year or portion thereof, the sum of the following expenses to the extent reasonably paid by Borrower during such period: (i) nonelective payments made with respect to the Senior Financing; (ii) all taxes and assessments imposed upon the Project and required to be paid by Borrower but only to the extent such taxes and assessments are paid or set aside as a reserve by Borrower during such calendar year; (iii) all amounts paid or set aside as a reserve by Borrower on account of insurance premiums for insurance carried in connection with the Project, provided that if insurance on the Project is maintained as part of a blanket policy covering the Project and other properties, the insurance premium included in this definition shall be the portion of the premium fairly allocable to the Project for the period; (iv) ownership and operating costs incurred by Borrower for the management, operation, cleaning, leasing, marketing, maintenance and repair of the Project (including without limitation, property management fees and administrative fees) properly chargeable against income according to generally accepted accounting principles, including without limitation wages, payroll and accounting costs, utility and heating charges, material costs, maintenance costs, costs of services, water and sewer charges, travel expenses allocable to the Project, and license fees and business taxes; provided, however, that (A) the amount included as property management fees and administrative fees in Operating Expenses shall collectively not exceed ten percent (10%) of Gross Rents from the Project for such period, all or a portion of each of which may be paid to Borrower and/or an Affiliate of Borrower, (B) such property management fees and administrative fees shall only be paid on the basis of supporting documentation reasonably acceptable to the City, and shall be paid after the payment of all other Operating Expenses, and (C) asset management fees and other fees shall only be considered Operating Expenses to the extent they do not exceed $10,000 in the aggregate in any year, which shall be adjusted annually by a percentage equal to the annual increase in AMI adopted by HUD; (v) reasonable and ordinary reserves as follows: (A) actually set aside for replacement of roofing, furniture, fixtures, equipment, and other capital expenditures, in an annual amount no less than $400.00 per unit and no greater than such higher amount as may be established from time to time by mutual agreement of the Parties and (B) additions to operating reserves so that the total operating reserves is equal to a minimum of four months of operating expenses plus four months of debt service payments; and (vi) priority payments toward the deferred developer fees paid to Borrower, together with interest at the applicable federal rate thereon, until such developer fees have been paid in full; and (vii) to the extent not otherwise included in Operating Expenses, amounts paid from any account as a reserve account for the purpose for which such reserve was created so long as such purpose would constitute an Operating Expense. 1.5.4 Notwithstanding any provision of Section 1.5.3, the term "Operating Expenses" shall not include any of the following: (i) salaries of employees of Borrower or Borrower's general overhead expenses, or expenses, costs and fees paid to an Affiliate of Borrower, to the extent any of the foregoing exceed the expenses, costs or fees that would be payable in a bona fide arms' length transaction between unrelated parties in the San Diego -Orange County area for the same work or services; (ii) any amounts paid directly by a tenant of the Project to a third party in connection with expenses which, if incurred by Borrower, would be Operating Expenses; (iii) optional or elective payments with respect to the Senior Financing; (iv) any payments with respect to Junior Financing, Other Financing, or any other Project -related loan or financing other than the Senior Financing; or Promissory Note Exhibit "C" 3 (v) expenses, expenditures, and charges of any nature whatsoever arising or incurred by Borrower prior to completion of the Project with respect to the development, maintenance and upkeep of the Project, or any portion thereof, including, without limitation, all costs and expenses incurred by Borrower in connection with the acquisition of the Property, all predevelopment activities conducted by Borrower in connection with the Project, including without limitation, the preparation of all plans and the performance of any tests, studies, investigations or other work, and the rehabilitation of the Project and any on -site or off - site work in connection therewith. 1.6 In addition to the payments provided in Section 1.2 above, and subject to the terms of the Senior Financing, Borrower shall pay to the City towards (but not to exceed) any outstanding amounts associated with the Loan: (a) no later than the date of close of escrow or other consummation of any Assignment other than a Minor Assignment, the Applicable Percentage of the Net Proceeds of such Assignment; and (b) no later than the recording of a Refinancing, fifty percent (50%) of the Net Refinancing Proceeds received from any such Refinancing. A "Minor Assignment" shall mean any lease of an individual unit in the Project for occupancy by a residential tenant and in the ordinary course of business for operation of the Project. "Applicable Percentage" shall mean fifty percent (50%); provided, however, that the term Applicable Percentage shall mean one hundred percent (100%) with respect to a payment on the Loan attributable in whole or in part to a condemnation of, or event of damage, destruction or casualty with respect to, the Site, the Project or any portion of either. "Assignment" means any voluntary or involuntary conveyance, disposition, assignment, taking, casualty, encumbrance (other than a Refinancing as defined below or the creation of the Senior Financing or any other Project Loan, the proceeds of which are used solely for initial acquisition of the Project by Borrower or initial development of the Project), sublease, sale, license, concession, management agreement, operating agreement, transfer or similar transaction with respect to any direct or indirect interest or economic benefit of any person or entity in connection with the Project or the use or occupancy of the Site including, without limitation, any Transfer by Borrower of all or any portion of its rights under or interest in the Project or the Site, any change of ownership or control of Borrower, any condemnation or taking of the Site or the Project or any portion thereof, any event of damage to or destruction of the Site or the Project, any foreclosure of Borrower's interest in the Project or the Site, whether by judicial proceedings, or by virtue of any power contained in a deed of trust, indenture or other instrument creating a lien against the Site or the Property, or any assignment of Borrower's estate in the Project or the Site through, or in lieu of, foreclosure or other appropriate and bona fide proceedings in the nature thereo.; "Net Proceeds" of an Assignment shall mean (1) the proceeds received, directly or indirectly, by Borrower or any Affiliate as a result of such Assignment, including, without limitation, cash, the amount of any monetary lien or encumbrance assumed or taken subject to by the assignee, the fair market value of any noncash consideration, including the present value of any promissory note received as part of the proceeds of such Assignment (such present value to be determined based upon a discount rate reasonably satisfactory to the City), the entire condemnation award or compensation payable to Borrower or any Affiliate or constituent Promissory Note Exhibit "C" 4 member or partner, or majority shareholder, of Borrower or any Affiliate in connection with a condemnation or taking in eminent domain of any part of the Site or the Project or any interest therein, all insurance proceeds or awards payable to Borrower or any Affiliate or constituent member or partner or majority shareholder of Borrower or any Affiliate in connection with any damage to or destruction of the Site or the Project or any part thereof not used for project restoration; less (2) the sum of (i) the actual, documented and reasonable expenses of effecting such Assignment, including reasonable brokerage fees, title insurance premiums, documentary transfer taxes, and reasonable attorneys' fees, in each case actually paid in connection with the Assignment (provided that no deduction shall be allowed for payments to an Affiliate of the person or entity making the Assignment which are in excess of the amount that would be paid for the same or equivalent services in an arms' length transaction between unrelated parties acting reasonably), and (ii) the amount of any proceeds of the Assignment paid (excluding voluntary payments) towards the then -outstanding balance of the Senior Financing. Notwithstanding anything above to the contrary, the permissible deductions for purposes of calculating the Net Proceeds of an Assignment shall not include any foreign, U.S., state or local income taxes, franchise taxes, or other taxes based on income. "Refinancing" shall mean creation or substantial modification of a loan ("Project Loan") secured by an encumbrance on the Site, the Project, or any portion thereof. The term "Refinancing" shall not include the creation of the Senior Financing or any other Project Loan, the proceeds of which are used solely for initial acquisition of the Site by Borrower or initial development of the Project. "Net Refinancing Proceeds" shall mean the gross face amount of the Project Loan obtained in connection with such Refinancing, after: (1) payment of the actual, documented and reasonable expenses of such Refinancing, including escrow fees, title policy expenses, legal expenses, survey fees, recording fees, and other usual and reasonable expenses of any such Refinancing (provided, that no deduction shall be allowed for payments in connection with such Refinancing which are in excess of the amounts that would be paid for the same or equivalent services in an arms' length transaction between unrelated parties acting reasonably); and (2) deduction of amounts repaid (excluding voluntary payments) in connection with the Refinancing towards amounts outstanding under the Senior Financing. 2. Acceleration. Notwithstanding the payment terms set forth in Section 1 above, upon the occurrence of any "Event of Default" as set forth in Section 9 below, the entire outstanding principal balance of this Note, together with any outstanding interest and other amounts payable hereunder, shall, at the election of the City and upon notice to Borrower thereof become immediately due and payable without presentment, demand, protest or other notices of any kind, all of which are hereby waived by Borrower. 3. Prepayment; Application of Payments. At any time after the disbursement of the Loan proceeds, Borrower may prepay all or a portion of the unpaid principal amount of the Loan and accrued interest and any other sums outstanding without penalty. All payments, including any prepayments or funds received upon acceleration pursuant to Section 2 above, shall be applied first toward any outstanding costs of Promissory Note Exhibit "C" 5 collection or other amounts (excluding Loan principal or interest thereon) due under this Note or the Loan Agreement, then toward outstanding interest accrued at the Default Rate, if any, then toward outstanding interest accrued at the Basic Rate, if any, and finally toward the remaining principal balance under the Note. 4. Security and Source of Payment. Borrower's obligations under this Note and the Loan Agreement shall, at all times during which any amount remains outstanding, be secured by the deed of trust ("Deed of Trust") of even date herewith, and of which the City is the beneficiary, recorded against Borrower's fee interest in the Site and the Project (collectively, the "Property"). The security interest in the Property granted to the City pursuant to the Deed of Trust shall be subordinate only to the Senior Financing and such exceptions to title shown in the title report for the Property which are approved in writing by the City. Except to the extent any Event of Default hereunder results directly or indirectly from any willful misconduct, fraud or intentional and material misrepresentation by Borrower in connection with this Note, the Loan Agreement or the Loan, the Loan is a nonrecourse obligation of Borrower and, in the event of the occurrence of an Event of Default, the City's only recourse under the Deed of Trust shall be against the Property, the proceeds thereof, the rents and other income arising from its use and occupancy as provided in the Deed of Trust, and any other collateral given to the City as security for repayment of the Loan. 5. Obligation of Borrower Unconditional. The obligation of Borrower to repay the Loan and all accrued interest thereon and all other sums due thereunder shall be absolute and unconditional, and until such time as all of the outstanding principal of, interest on and all other sums due under, this Note shall have been fully paid, Borrower agrees that it: (a) will use the funds solely for the purposes set forth herein; and (b) will not terminate or suspend any payment or obligations under this Note, the Loan Agreement, or any other document executed hereunder or in connection herewith for any cause, including without limitation, any acts or circumstances that may constitute failure of consideration, commercial frustration of purpose, or any duty, liability or obligation arising out of or in connection with this Note, the Loan Agreement or any document executed hereunder or in connection herewith. Promissory Note Exhibit "C" 6 6. Purpose of Loan. The Loan proceeds shall be used by Borrower only to provide acquisition and permanent financing for the housing development described in the Loan Agreement. In no event shall Borrower use or otherwise invest the proceeds of the Loan except as expressly provided in this Note. 7. Covenants of Borrower. As additional consideration for the making of the Loan by the City, Borrower covenants as follows: 7.1 Compliance with Loan Agreement and Deed of Trust. Borrower shall comply with all of its obligations under the Loan Agreement and the Deed of Trust. Any amounts payable by Borrower under the Loan Agreement or the Deed of Trust (other than amounts also payable hereunder) shall be deemed added to the principal amount of the Loan payable hereunder. 7.2 Other Loans. Borrower shall comply with all monetary and nonmonetary covenants associated with any loan secured by an interest in the Site or the Project. Borrower shall provide to the City a copy of any notice of default within five business days after receiving any notice of a default or alleged default of such covenants by Borrower, and Borrower shall promptly cure any such default and cooperate in permitting the City, to the extent the City in its sole discretion elects to do so, to cure or assist in curing the default. Any cost or expenditure incurred by the City in providing or assisting in such a cure shall be added to the outstanding principal amount of the Loan. 8. Assignment of this Note. This Note shall be assignable by Borrower only if Borrower obtains the prior express written consent of the City, which consent may be withheld by the City in its sole discretion. Notwithstanding anything to the contrary in this Note, no purported assignment of this Note and the Loan shall be effective if such assignment would violate the terms, conditions and restrictions of any Applicable Governmental Restrictions. The City's consent to such assignment shall be expressly conditioned upon (i) the assignee's execution of such documents as required by the City in its sole discretion, including, without limitation, any and all documents deemed necessary by the City to provide for said assignee's assumption of all of the obligations of Borrower hereunder and under the Loan Documents, and (ii) the City's approval of the financial and credit worthiness of such proposed assignee and the assignee's ability to perform all of the Borrower's covenants under this Note and the Loan Agreement and any of the other Loan Documents. 9. Events of Default and Remedies. A. Borrower Events of Default. The occurrence of any of the following shall, after the giving of any notice and the expiration of any applicable cure period described therein, constitute an event of default by Borrower hereunder ("Event of Default"): Promissory Note Exhibit "C" 7 (1) The failure of Borrower to pay or perform any monetary covenant or obligation hereunder or under the terms of the HOME Note or the HOME Deed of Trust or the HOME Loan Agreement, without curing such failure within ten (10) days after the date such payment is due. Notwithstanding anything herein to the contrary, the herein described cure period shall not apply to a failure by Borrower to timely repay the HOME Loan at the Maturity Date of this HOME Note; (2) The failure of Borrower to perform any nonmonetary covenant or obligation hereunder or under the terms of the HOME Note, the HOME Deed of Trust or the HOME Loan Agreement, without curing such failure within thirty (30) days after receipt of written notice of such default from the City (or from any party authorized by the City to deliver such notice as identified by the City in writing to Borrower) specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency; provided, however, that if any default with respect to a nonmonetary obligation is such that it cannot be cured within a 30-day period, it shall be deemed cured if Borrower commences the cure within said 30-day period and diligently prosecutes such cure to completion thereafter with the cure completed in any event within 180 days after the notice. Notwithstanding anything herein to the contrary, the herein described notice cure periods shall not apply to any Event of Default described in Sections 9(A)(3) through 9(A)(8) below; (3) The material falsity of any representation or breach of any warranty or covenant made by Borrower under the terms of this HOME Note, the HOME Loan Agreement or the HOME Deed of Trust; (4) Borrower or any constituent member or partner, or majority shareholder, of Borrower shall (a) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian or the like of its property, (b) fail to pay or admit in writing its inability to pay its debts generally as they become due, (c) make a general assignment for the benefit of creditors, (d) be adjudicated a bankrupt or insolvent or (e) commence a voluntary case under the Federal bankruptcy laws of the United States of America or file a voluntary petition that is not withdrawn within ten (10) days of the filing thereof or answer seeking an arrangement with creditors or an order for relief or seeking to take advantage of any insolvency law or file an answer admitting the material allegations of a petition filed against it in any bankruptcy or insolvency proceeding; (5) If without the application, approval or consent of Borrower, a proceeding shall be instituted in any court of competent jurisdiction, under any law relating to bankruptcy, in respect of Borrower or any constituent member or partner or majority shareholder of Borrower, for an order for relief or an adjudication in bankruptcy, a composition or arrangement with creditors, a readjustment of debts, the appointment of a trustee, receiver, liquidator or custodian or the like of Borrower or of all or any substantial part of Borrower's assets, or other like relief in respect thereof under any bankruptcy or insolvency law, and, if such proceeding is being contested by Borrower, in good faith, the same shall (a) result in the entry of an order for relief or any such adjudication or appointment, or (b) continue undismissed, or pending and unstayed, for any period of ninety (90) consecutive days; (6) Following completion of the rehabilitation of the Project, voluntary cessation of the operation of the Project for a continuous period of more than thirty (30) Promissory Note Exhibit "C" 8 days or the involuntary cessation of the operation of the Project in accordance with this HOME Note for a continuous period of more than sixty (60) days; (7) Borrower shall suffer or attempt to effect a Transfer (as defined below), in violation of Section 14 or Section 29 of the Loan Agreement; or (8) Borrower shall be in default under the CC&Rs, Senior Financing, Junior Financing, Other Financing, the Supportive Services Agreement (if applicable under Section 7 of the Loan Agreement) or any other secured or unsecured obligation relating to the Project, unless the default is cured within the cure period, if any, applicable thereto under the terms of the obligation which is in default. B. City Remedies. Upon the occurrence of an Event of Default hereunder, the City may, in its sole discretion, take any one or more of the following actions: (1) By notice to Borrower, declare the entire then unpaid principal balance of the Loan immediately due and payable, and the same shall become due and payable without further demand, protest or further notice of any kind, all of which are hereby expressly waived by Borrower. Upon such declaration, outstanding principal and (to the extent permitted by law) interest and any other sums outstanding in connection with the Loan shall thereafter bear interest at the Default Rate, payable from the date of such declaration until paid in full; (2) Subject to the nonrecourse provisions of Section 4 above, take any and all actions and do any and all things which are allowed, permitted or provided by law, in equity or by statute, in the sole discretion of the City, to collect the amounts then due and thereafter to become due hereunder, to exercise its rights under the Deed of Trust, and to enforce performance and observance of any obligation, agreement or covenant of the Borrower under this Note or under any other document executed in connection herewith; (3) Subject to the nonrecourse provisions of Section 4 above, upon the occurrence of an Event of Default, which is occasioned by Borrower's failure to pay money, whether under this Note or the Loan Agreement, the City may, but shall not be obligated to, make such payment. If such payment is made by the City, Borrower shall deposit with the City, upon written demand therefor, such sum plus interest at the Default Rate. The Event of Default with respect to which any such payment has been made by the City shall not be deemed cured until such repayment has been made by Borrower. Until repaid, such amounts shall have the security afforded disbursements under this Note; (4) Subject to the nonrecourse provisions of Section 4 above, upon the occurrence of an Event of Default described in Section 9(A)(4) or 9(A)(5) hereof, the City shall be entitled and empowered by intervention in such proceedings or otherwise to file and prove a claim for the whole amount owing and unpaid on the Loan and, in the case of commencement of any judicial proceedings, to file such proof of claim and other papers or documents as may be necessary or advisable in the judgment of the City and its counsel to protect the interests of the City and to collect and receive any monies or other property in satisfaction of its claim. Promissory Note Exhibit "C" 9 C. No Remedy Exclusive. No remedy herein conferred upon or reserved to the City is intended to be exclusive of any other available remedy or remedies, but each such remedy shall be cumulative and shall be in addition to every other remedy given under this Note or now or hereafter existing at law or in equity or by statute; and may be exercised in such number, at such times and in such order as the City may determine in its sole discretion. No delay or omission to exercise any right or power upon the occurrence of any Event of Default hereunder shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient by the City. In order to entitle the City to exercise any right or remedy reserved to it under this Note, no notice shall be required except as expressly provided herein. D. City Default and Borrower Remedies. Upon fault or failure of the City to meet any of its obligations under this Note without curing such failure within thirty (30) days after receipt of written notice of such failure from Borrower specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency, Borrower may, as its sole and exclusive remedies: (1) Demand and obtain payment from the City of any sums due to or for the benefit of Borrower pursuant to the express terms of this Note; (2) Bring an action in equitable relief seeking the specific performance by the City of the terms and conditions of this Note or seeking to enjoin any act by the City which is prohibited hereunder; or (3) Bring an action for declaratory relief seeking judicial determination of the meaning of any provision of this Note. Without limiting the generality of the foregoing, Borrower shall in no event be entitled to, and hereby waives, any right to seek indirect or consequential damages of any kind or nature from the City arising out of or in connection with this Note, and in connection with such waiver Borrower is familiar with and hereby waives the provisions of Section 1542 of the California Civil Code which provides as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR." Promissory Note Exhibit "C" 10 10. Agreement to Pay Attorneys' Fees and Expenses. In the event that either party hereto brings any action or files any proceeding in connection with the enforcement of its respective rights under this Note, or any of the other Loan Documents which loan documents are incorporated herein by reference, as a consequence of any breach by the other party of its obligations hereunder or thereunder, the prevailing party in such action or proceeding shall be entitled to have its reasonable attorneys' fees and out-of-pocket expenditures paid by the losing party. The attorneys' fees so recovered shall include fees for prosecuting or defending any appeal and shall be awarded for any supplemental proceedings until the final judgment is satisfied in full. In addition to the foregoing award of attorneys' fees, the prevailing party in any lawsuit on this Note or any other Loan Document shall also be entitled to its attorneys' fees incurred in any post -judgment proceedings to collect or enforce the judgment. In addition to the foregoing, Borrower agrees to pay or reimburse the City, upon demand by the City, for all costs incurred by the City in connection with the enforcement of this Note, and any other Loan Document, including without limitation, reasonable attorneys' fees and costs, if there shall be filed by or against Borrower any proceedings under any federal or state bankruptcy or insolvency laws, whether the City is a creditor in such proceeding or otherwise. 11. Conflict of Interest; No Individual Liability. No official or employee of the City shall have any personal interest, direct or indirect, in this Note, nor shall any official or employee of 'the City participate in any decision relating to this Note which affects such official's or employee's pecuniary interest in any corporation, partnership or association in which such official or employee is directly or indirectly interested. No official or employee of the City shall be personally liable in the event of a breach of this Note by the City. 12. Amendments, Changes and Modifications. This Note may not be amended, changed, modified, or altered without the prior written consent of the parties hereto. 13. Notices. All notices, demands, requests, elections, approvals, disapprovals, consents or other communications given under this Note shall be in writing and shall be given by personal delivery, facsimile, certified mail (return receipt requested), or overnight guaranteed delivery service and faxed or addressed as follows: If to City: If to Borrower: City of National City Attn: Community Development Director 1243 National City Boulevard National City, CA 91950 Casa Familiar Inc. Attn: President & CEO 119 West Hall St. San Ysidro, CA 92037 Promissory Note Exhibit "C" 11 Notices shall be effective upon receipt, if given by personal delivery; upon receipt, if faxed, provided there is written confirmation of receipt (except that if received after 5 p.m., notice shall be deemed received on the next business day); the earlier of (i) three (3) business days after deposit with United States Mail, or (ii) the date of actual receipt as evidenced by the return receipt, if delivered by certified mail; or (iii) one (1) day after deposit with the delivery service, if delivered by overnight guaranteed delivery service. Each party shall promptly notify the other party of any change(s) of address to which notice shall be sent pursuant to this Note. 14. Severability. The invalidity or unenforceability of any one or more provisions of this Note will in no way affect any other provision. 15. Interpretation. Whenever the context requires, all words used in the singular will be construed to have been used in the plural, and vice versa, and each gender will include any other gender. The captions of the paragraphs of this Note are for convenience only and do not define or limit any terms or provisions. Time is of the essence in the performance of this Note by Borrower. Each Party has been represented by counsel in the negotiation of this Note, and it shall not be interpreted in favor of or against any Party on account of relative responsibilities in drafting. Notwithstanding any other provision of this Note, nothing herein or in this Note shall be deemed to require Borrower to pay interest in the amount of any applicable usury law or other legal limitation on interest, and the terms hereof and of this Note shall be interpreted to require in each instance the lesser of (i) the amount stated in this Note; and (ii) the maximum applicable legal limit. Defined terms not otherwise defined herein shall have the meaning assigned to them by the Loan Agreement. 16. No Waiver; Consents. Any waiver by the City must be in writing and will not be construed as a continu- ing waiver. No waiver will be implied from any delay or failure by the City to take action on account of any default of Borrower. Consent by the City to any act or omission by Borrower will not be construed as consent to any other or subsequent act or omission or to waive the requirement for the City's consent to be obtained in any future or other instance. 17. Governing Law. This Note shall be governed by the laws of the State of California. 18. Representations, Warranties and Additional Covenants of Borrower. Borrower hereby represents, warrants and covenants to the City that: A. Organization and Standing. Borrower is a California legal entity as described in the Transaction Summary set forth in the Loan Agreement, duly formed, Promissory Note Exhibit "C" 12 qualified to operate in California and validly existing and in good standing under all applicable laws, and has all requisite power and authority to enter into and perform its obligations under this Note, the Loan Agreement, the Deed of Trust, the CC&Rs, and all other documents executed in connection herewith. B. Enforceability. This Note and all other instruments to be executed by Borrower in connection with the Loan constitute the legal, valid and binding obligation of Borrower, without joinder of any other party. C. Authorization and Consents. The execution, delivery and performance of this Note and all other instruments to be executed in connection herewith is consistent with the operating agreement, partnership agreement or articles and bylaws governing Borrower and have been duly authorized by all necessary action of Borrower's members, partners, directors, officers and shareholders. D. Due and Valid Execution. This Note and all other instruments to be executed in connection herewith, will, as of the date of their execution, have been duly and validly executed by Borrower. E. Licenses. Borrower will obtain and maintain all material licenses, permits, consents and approvals required by all applicable governmental authorities to own and operate the Project. F. Litigation and Compliance. There are no suits, other proceedings or investigations pending or threatened against, or affecting the business or the properties of Borrower (other than those as have been previously disclosed in writing to the City) which could impair its ability to perform its obligations under this Note, nor is Borrower in violation of any laws or ordinances which could materially impair Borrower's ability to perform its obligations under this Note. G. Default. There are no facts now in existence which would, with the giving of notice or the lapse of time, or both, constitute an "Event of Default" hereunder, as described in Section 9. H. No Violations. The execution and delivery of this Note, the Loan Agreement and all other documents executed or given thereunder, and the performances hereunder and thereunder by Borrower, as applicable, will not constitute a breach of or default under any instrument or agreement to which Borrower may be a party nor will the same constitute a breach of or violate any law or governmental regula- tion. 19. Approvals. Except with respect to those matters set forth hereinabove providing for the City's approval, consent or determination to be at the City's "sole discretion" or "sole and absolute discretion," the City hereby agrees to act reasonably with regard to any approval, consent, or other determination given by the City hereunder. The City agrees to give Borrower written notice of its approval or disapproval following submission of Promissory Note Exhibit "C" 13 items to the City for approval, including, in the case of any disapproved item, the reasons for such disapproval. Any review or approval of any matter by the City or any City official or employee under this Note shall be solely for the benefit of the City, and neither Borrower nor any other person shall rely upon such review or approval as an indication of the wisdom, soundness, safety, appropriateness, or presence or absence of any matter. Without limiting the generality of the foregoing, Borrower and not the City shall be solely responsible for assuring compliance with laws, the suitability of the Site for the Project, the adequacy of the plans, and the safety of the Project construction site, the completed Project, and the operation thereof. Any consent to a Transfer under Section 29 of the Loan Agreement and any other consent or approval by the City under this Note, the Deed of Trust, the Loan Agreement or any of the other documents executed in connection therewith, may be given by the City's Community Development Director without action by the City's governing board, unless the Community Development Director in his or her sole discretion elects to refer the matter to the board. 20. Good Faith and Fair Dealing. The City and Borrower agree to perform all of their obligations and the actions required of each hereunder in good faith and in accordance with fair dealing. 21. Waiver. Borrower agrees that it will still be liable for repayment of this Note, subject to the nonrecourse provision of Section 4 above, even if the holder hereof does not follow the procedures of presentment, protest, demand, diligence, notice of dishonor and of nonpayment, which requirements are hereby waived. Failure of the City or other holder hereof to exercise any right or remedy hereunder shall not constitute a waiver of any future or other default. No acceptance of a past due installment or indulgence granted from time to time shall be construed to be a waiver of, or to preclude the exercise of, the right to insist upon prompt payment thereafter or to impose late charges retroactively or prospectively, or to waive or preclude the exercise of any other rights which the City may have. Promissory Note Exhibit "C" 14 IN WITNESS WHEREOF, Borrower has executed this Note as of the date and year first above written BORROWER: CASA FAMILIAR, INCORPORATED, a California non-profit public benefit corporation By: Andrea Skorepa Its: President & CEO Promissory Note Exhibit "C" 15 EXHIBIT "D" TO LOAN AGREEMENT DEED OF TRUST (HOME FUND - PROJECT NO. 09-02) OFFICIAL BUSINESS Document entitled to free recording per Govt. Code Section 6103. Recording Requested by and When Recorded Mail To: CITY OF NATIONAL CITY 1243 National City Boulevard National City, CA 91950 Attn.: Community Development Manager/Housing Above Space For Recorder's Use Only DEED OF TRUST, ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND FIXTURE FILING THIS DEED OF TRUST, ASSIGNMENT OF RENTS, SECURITY AGREEMENT AND FIXTURE FILING ("Deed of Trust") is made as of , 2006, by and between CASA FAMILIAR, INC. ("Trustor"), a California non-profit public benefit corporation, Title Company of California, Inc. ("Trustee"); and the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, a public body corporate and politic ("Beneficiary"). RECITALS A. Beneficiary is making a loan to Trustor in the original principal amount of EIGHT HUNDRED THIRTY-FIVE THOUSAND Dollars ($835,000) (the "Loan") pursuant to that certain Loan Agreement (the "Loan Agreement") entered into by Trustor and Beneficiary and dated as of , 2008. The Loan is evidenced by a promissory note of even date herewith executed by Trustor (the "Note") in the principal amount of the Loan. B. Trustor intends to use the Loan proceeds for the purpose of providing financing for the housing development described in the Loan Agreement (the "Project"). The Project will be developed on a site legally described on Attachment "1" to this Deed of Trust (the "Property"). Deed of Trust Exhibit "D" 1 NOW THEREFORE, in consideration of the Loan, Trustor hereby irrevocably grants, conveys, transfers and assigns to Trustee, its successors and assigns, in trust, with power of sale and right of entry and possession as provided below all of its present and future estate, right, title and interest in and to the Property, together with all right, title and interest of Trustor therein and in and to, and grants to Beneficiary a security interest in, the following: (A) All development rights, air rights, water, water rights, and water stock relating to the Property. (B) All present and future structures, buildings, improvements, appurtenances and fixtures of any kind on the Property, including but not limited to all apparatus, attached equipment and appliances used in connection with the operation or occupancy of the Property, such as heating and air-conditioning systems and facilities used to provide any utility services, ventilation, vehicular cleaning, storage or other services on the Property, and all signage, carpeting and floor coverings, partitions, generators, screens, awnings, boilers, fumaces, pipes, plumbing, vacuum systems, brushes, blowers, cleaning, call and sprinkler systems, fire extinguishing apparatus and equipment, water tanks, heating, ventilating, air conditioning and air cooling equipment, and gas and electric machinery and equipment, it being intended and agreed that all such items will be conclusively considered to be a part of the Property conveyed by this Deed of Trust, whether or not attached or affixed to the Property. (C) All appurtenances of the Property and all rights of Trustor in and to any streets, roads or public places, easements or rights of way, relating to the Property. (D) All of the rents, royalties, profits and income related to the Property, to the extent not prohibited by any applicable law. (E) All proceeds and claims arising on account of any damage to or taking of the Property and all causes of action and recoveries for any loss or diminution in value of the Property. (F) All existing and future goods, inventory, equipment and all other personal property of any nature whatsoever now or hereafter located on the Property which are now or in the future owned by Trustor and used in the operation or occupancy of the Property or in any construction on the Property but which are not effectively made real property under Clause (B) above, including but not limited to all appliances, fumiture and furnishings, building service equipment, and building materials, supplies, equipment, machinery, plumbing and plumbing material and supplies, concrete, lumber, hardware, electrical wiring and electrical material and supplies, roofing material and supplies, doors, paint, drywall, insulation, cabinets, ceramic material and supplies, flooring, attached appliances, fencing, landscaping and all other materials, supplies and property of every kind and nature. (G) All present and future accounts, general intangibles, chattel paper, contract rights, deposit accounts, instruments and documents as those terms are defined in the California Uniform Commercial Code, now or hereafter relating or arising with respect to the Deed of Trust Exhibit "D" 2 Property and/or the use thereof or any improvements thereto, including without limitation: (i) all rights to the payment of money, including escrow proceeds arising out of the sale or other disposition of all or any portion of the estate of Trustor upon the Property now or hereafter existing thereon; (ii) all plans, specifications and drawings relating to the development of the Property and/or any construction thereon; (iii) all use permits, licenses, occupancy permits, construction and building permits, and all other permits and approvals required by any governmental or quasi -governmental authority in connection with the development, construction, use, occupancy or operation of the Property; (iv) any and all agreements relating to the development, construction, use, occupancy and/or operation of the Property between Trustor and any contractor, subcontractor, project manager or supervisor, architect, engineer, laborer or supplier of materials; (v) all lease or rental agreements; (vi) all names under which the Property is now or hereafter operated or known and all rights to carry on business under any such names or any variant thereof; (vii) all trademarks relating to the Property and/or the development, construction, use, occupancy or operation thereof; (viii) all goodwill relating to the Property and/or the development, construction, use, occupancy or operation thereof; (ix) all reserves, deferred payments, deposits, refunds, cost savings, bonds, insurance policies and payments of any kind relating to the Property; (x) all loan commitments issued to Trustor in connection with any sale or financing of the Property; (xi) all funds deposited with Beneficiary by Trustor, and all accounts of Trustor with Beneficiary, including all accounts containing security deposits and prepaid rents paid to Trustor in connection with any leases of the Property, and all proceeds thereof; and (xii) all supplements, modifications and amendments to the foregoing. (H) All of the right, title and interest of Trustor in and to all sales contracts of any nature whatsoever now or hereafter executed covering any portion of the Property, together with all deposits or other payments made in connection therewith. (I) All of the right, title and interest of Trustor in and to any construction contracts, plans and specifications, building permits, and all other documents necessary for completion of the improvements to the construction of the Property. (J) All water stock relating to the Property, all shares of stock or other evidence of ownership of any part of the Property that is owned by Trustor in common with others, and all documents of membership in any owner's or members' association or similar group having responsibility for managing or operating any part of the Property. Trustor does hereby covenant with Trustee and Beneficiary, that Trustor has good right to bargain, sell and convey Trustor's interest in the Property in manner and form as above written; and Trustor warrants and will defend same to Beneficiary, forever, against all lawful claims and demands whatsoever except as stated above. THIS DEED OF TRUST IS FOR THE PURPOSE OF SECURING: (1) performance of each agreement of Trustor herein contained or incorporated herein by reference; Deed of Trust Exhibit "D" 3 (2) payment of the indebtedness (including, without limitation, interest thereon) evidenced by the Note, and any extension or renewal or modification thereof; (3) performance of each agreement of Trustor contained in the Loan Agreement, or any of the other "Loan Documents" (as defined in the Loan Agreement), and any extension, renewal or modification of such Loan Agreement and other Loan Documents; TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR HEREBY COVENANTS AND AGREES AS FOLLOWS: 1. Payment of Secured Obligations. To pay when due (a) the principal of, and the interest on, the indebtedness evidenced by the Note, (b) charges, fees and all other sums as provided in the Loan Agreement, and (c) the principal of, and interest on, any future advances secured by this Deed of Trust. 2. Maintenance, Repair, Alterations. To keep the Property in good condition and repair; to complete promptly and in a good and workmanlike manner all buildings and other improvements to be constructed on the Property, including specifically all buildings and improvements described in the Loan Agreement, and promptly restore in like manner any structure that may be damaged or destroyed thereon; to pay when due all claims for labor performed and materials furnished therefor, to comply with all laws, ordinances, regulations, covenants, conditions and restrictions now or hereafter affecting the Property or any part thereof or requiring any alterations or improvements thereon; not to commit or permit any waste or deterioration of the Property; to keep and maintain abutting grounds, sidewalks, roads, parking and landscape areas in good and neat order and repair; not to commit, suffer or permit, to the extent Trustor is able by the exercise of commercially reasonable best efforts, any act to be done in or upon the Property in violation of any law, ordinance or regulation. 3. Insurance. To provide, maintain at its expense and deliver to Beneficiary at all times until payment in full of all obligations secured hereby, insurance as required by the Loan Agreement or the Note. In the event of any loss or damage, Trustor shall give immediate notice thereof to Beneficiary, and Beneficiary may thereupon make proof of such loss or damage, if the same is not promptly made by Trustor. Trustor and Beneficiary hereby agree to cooperate in making any adjustment and compromise of any loss covered by the aforementioned insurance policies upon the Property, and Trustor authorizes and empowers Beneficiary, at its option, to collect and receive the proceeds, and endorse checks and drafts issued therefor. Beneficiary agrees that in the event of any loss covered by insurance policies on the Property subject to this Deed of Trust, provided there is not then existing any material default (or such existing default will be cured by the proceeds of such insurance) in the obser- vance or performance of any of the covenants and agreements contained herein or in the Note or any future notes secured hereby, or in any other agreement with or for the benefit of the Beneficiary in connection with any indebtedness secured hereby, the proceeds of such insurance shall be used for the repair or restoration of the Property and will be disbursed in accordance with such protective terms and conditions as Beneficiary may reasonably impose. Deed of Trust Exhibit "D" 4 Trustor hereby fully assigns to Beneficiary all current and future claims it may have under any policy of insurance related to the Property or the Project, regardless of whether such insurance was required to be maintained under the Loan Documents. Any and all unexpired insurance shall inure to the benefit of and pass to the purchaser of the Property at any foreclosure sale, or any Trustee's sale held pursuant hereto. Further, Beneficiary may at the time in its sole discretion require Trustor to submit satisfactory evidence of insurance policies obtained pursuant to this Paragraph 3 and of Trustor's compliance with all the provisions of said policies. 4. Lawsuits. To appear in and defend, or otherwise take such action therein as the Beneficiary and Trustee or either of them may deem advisable with respect to, any action or proceeding affecting the security for the Loan in which Beneficiary or Trustee may appear. 5. Beneficiary Statement. To pay all charges for all court costs and expenses which Beneficiary may elect to advance in order to keep unimpaired, protect, and preserve the title thereto; and to pay for any statement provided for by law in effect at the date hereof regarding the obligations secured hereby, any amount demanded by the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. 6. Condemnation. That all judgments, awards of damages and settlements, hereafter made as a result of or in lieu of any condemnation or other proceedings for public use of, or for any damage to, the Property or the improvements thereon, are hereby assigned to Beneficiary. If (i) Trustor is not then in material default hereunder (or such default will be cured with the proceeds from the foregoing), and (ii) the taking is a partial taking, all proceeds thereof shall be applied to restoring the Property, if practicable, as reasonably determined by Beneficiary. In the event (i) Trustor is then in material default hereunder (and such default will not be cured with the proceeds of the foregoing), (ii) the taking is a total taking, or (iii) the taking is a partial taking and Beneficiary has reasonably determined that restoration of the Property is not practicable, the proceeds shall be paid to Beneficiary to the extent of those monies due and owing under the Note, this Deed of Trust, future notes or future deeds of trust, and Beneficiary is hereby authorized to receive such monies. Trustor agrees to execute such further assignments of any such award, judgment or settlement which may be received by Trustor. Subject to any prior rights of creditors under the Senior Financing (as defined in the Loan Agreement), Beneficiary may apply any and all such sums to the indebtedness secured hereby in such manner as it elects or, at its option, the entire amount so received by it or any part thereof may be released. Neither the application nor the release of any such sums shall cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 7. Permitted Acts of Beneficiary. That without affecting the liability of any person, including Trustor (other than any person released pursuant hereto), for the payment of any indebtedness secured hereby, Beneficiary is authorized and empowered as follows: Beneficiary may at any time, and from time to time, either before or after the maturity of the obligations secured hereby, and without notice (a) release any person liable for the payment of any of the indebtedness, (b) make any agreement extending the time or otherwise altering the Deed of Trust Exhibit "D" 5 terms of payment of any of the indebtedness, (c) accept additional security therefor of any kind, or (d) release any property, real or personal, securing the indebtedness. 8. Reconveyance of Property. That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and the Note to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the Property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive proof of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." 9. Default and Trustee's Sale. That upon the occurrence of an "Event of Default" under this Deed of Trust (as defined in Section 18 below) Beneficiary may declare all principal remaining unpaid, all interest then earned and remaining unpaid, and all sums other than principal or interest secured hereby, immediately due and payable (and thenceforth at the option of the Beneficiary and except as otherwise prohibited by law, the entire balance of the unpaid principal shall thereafter bear interest at the Default Rate of interest per annum set forth in the Note until paid) and may proceed to exercise the power of sale granted by this Deed of Trust by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said Property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed of Trust, the Note and all documents evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell the Property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee or Beneficiary, may purchase at such sale. After deducting all costs, fees and expenses of Trustee, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: first, all sums expended by the Beneficiary under the terms hereof or under the Note, not then repaid, with accrued interest at the Deferral Rate; second, all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. 10. Substitute Trustees. Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the Office of the Recorder Deed of Trust Exhibit "D" 6 of the County of San Diego, and by otherwise complying with the provisions of Califomia Civil Code Section 2934a, or any successor section, shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, right, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded and the name and address of the new Trustee. 11. Successors Bound. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors, assigns, trustees and receivers. in this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 12. Evidence of Title. That if, because of any default hereunder, or because of the filing or contemplated filing of any legal proceedings affecting the Property, Beneficiary deems it necessary to obtain an additional evidence of title or to cure any defect in title, Beneficiary may procure such evidence or cure such defect, pay the cost thereof, and shall have an immediate claim against Trustor therefor, together with a lien upon the Property for the amount so paid, with interest at the Deferral Rate. Beneficiary is further authorized to require an appraisal of the Property at any time that Beneficiary may reasonably request. 13. Default in Other Instruments; Bankruptcy. That default in the terms of any other instrument securing the debt secured hereby, and/or the filing or other commencement of any bankruptcy or insolvency proceedings including any assignment for the benefit of creditors or other proceedings intended to liquidate or rehabilitate, by, for or against Trustor shall after any applicable notice and cure period constitute default under this Deed of Trust. 14. Statute of Limitations. That the pleading of any statute of limitations as a defense to any and all obligations secured by this Deed of Trust is hereby waived by the Trustor, to the full extent permissible by law. 15. Severability. That the invalidity of any one or more covenants, phrases, clauses, sentences, paragraphs or sections of this Deed of Trust shall not affect the remaining portions of this Deed of Trust or any part hereof and this Deed of Trust shall be constructed as if such invalid covenants, phrases, sentences, paragraphs or sections, if any, had not been inserted herein. 16. Order of Application. That if the indebtedness secured hereby is now or hereafter becomes further secured by a security agreement, deed of trust, pledge, contract of guaranty or other additional securities, Beneficiary may to the full extent allowed by law, at its option, exhaust any one or more of said securities as well as the security hereunder, either concurrently or independently and in such order as it may determine, and may apply the proceeds received upon the indebtedness secured hereby without affecting the status of, or waiving any right to exhaust all or any other security including the security thereunder and without waiving any breach or default in any right or power, whether exercised hereunder or contained herein, or in any such other security. Deed of Trust Exhibit "D" 7 17. Covenants of Trustor. (a) Audit by State and Federal Agencies. In the event the Loan is subjected to audit, monitoring or other inspections by appropriate state and federal agencies, Trustor shall comply with such inspections and pay, on behalf of itself and Beneficiary, the full amount of the cost to the inspecting agency of such inspections (unless such inspection and any resulting liability arises solely from the gross negligence or willful misconduct of Beneficiary). (b) Program Evaluation and Review Trustor shall allow Beneficiary's authorized personnel to inspect and monitor its facilities and program operations as they relate to the Project or the Loan Agreement, including the interview of Trustor's staff, tenants, and other program participants, as reasonably required by Beneficiary during the term of the Loan. 18. Default. The Trustor shall be in default under this Deed of Trust upon any of the following events which, if not cured within the applicable cure period provided, if any, shall constitute an event of default hereunder ("Event of Default"): a. The failure of Trustor to pay or perform any monetary covenant or obligation hereunder or under the terms of the Note, the Loan Agreement or any other documents executed in connection therewith, without curing such failure within ten (10) days the date such payment is due. Notwithstanding anything herein to the contrary, the herein described cure period shall not apply to a failure by Trustor to timely repay the Loan at the Maturity Date of the Note; b. The failure of Trustor to perform any nonmonetary covenant or obligation hereunder or under the terms of the Loan Agreement, the Note or any other documents executed in connection therewith, without curing such failure within thirty (30) days after receipt of written notice of such default from Beneficiary (or from any party authorized by Beneficiary to deliver such notice as identified by Beneficiary in writing to Trustor) specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency; provided, however, that if any default with respect to a nonmonetary obligation is such that it cannot be cured within a 30-day period, it shall be deemed cured if Trustor commences the cure within said 30-day period and diligently prosecutes such cure to completion thereafter. Notwithstanding anything herein to the contrary, the herein described notice requirements and cure periods shall not apply to any Event of Default described in Sections 18(c) through 18(h) below; c. The material falsity of any representation or breach of any warranty or covenant made by Trustor under the terms of this Deed of Trust, the Note, the Loan Agreement or any other document executed in connection therewith; d. Trustor or any constituent member or partner, or majority shareholder, of Trustor shall (a) apply for or consent to the appointment of a receiver, trustee, Deed of Trust Exhibit "D" 8 liquidator or custodian or the like of its property, (b) fail to pay or admit in writing its inability to pay its debts generally as they become due, (c) make a general assignment for the benefit of creditors, (d) be adjudicated a bankrupt or insolvent or (e) commence a voluntary case under the Federal bankruptcy laws of the United States of America or file a voluntary petition that is not withdrawn within ten (10) days of the filing thereof or answer seeking an arrangement with creditors or an order for relief or seeking to take advantage of any insolvency law or file an answer admitting the material allegations of a petition filed against it in any bankruptcy or insolvency proceeding; e. If without the application, approval or consent of Trustor, a proceeding shall be instituted in any court of competent jurisdiction, under any law relating to bankruptcy, in respect of Trustor or any constituent member or partner, or majority shareholder, of Trustor, for an order for relief or an adjudication in bankruptcy, a composition or arrangement with creditors, a readjustment of debts, the appointment of a trustee, receiver, liquidator or custodian or the like of Trustor or of all or any substantial part of Trustor's assets, or other like relief in respect thereof under any bankruptcy or insolvency law, and, if such proceeding is being contested by Trustor, in good faith, the same shall (a) result in the entry of an order for relief or any such adjudication or appointment, or (b) continue undismissed, or pending and unstayed, for any period of ninety (90) consecutive days; f. Trustor shall suffer or attempt to effect a "Transfer" (as defined in Section 33 below) other than in full compliance with the terms of this Deed of Trust (or otherwise in violation of Section 14 or 29 of the Loan Agreement); g. Trustor shall be in default under the CC&Rs, the Senior Financing, any Junior Financing or Other Financing (as all these terms are defined in the Loan Agreement), the Supportive Services Agreement (as defined in, and if applicable under, Section 7 of the Loan Agreement) or any other secured or unsecured obligation relating to the Project, unless the default is cured or waived within the cure period, if any, applicable thereto under the terms of the obligation which is in default; or h. Following completion of the construction of the Project, voluntary cessation of the operation of the Project for a continuous period of more than thirty (30) days or the involuntary cessation of the operation of the Project in accordance with this Deed of Trust for a continuous period of more than sixty (60) days. 19. Acceleration. The entire principal and all accrued and unpaid interest on the Note shall be due and payable as therein set forth; provided, however, that the entire balance of the outstanding principal and all accrued and unpaid interest on the Note, together with any outstanding interest and other amounts payable thereunder, shall, at the election of Beneficiary and upon notice to Trustor thereof (except in the case of default described in Section 18 (c) or (d) , in which case no notice shall be required), become immediately due and payable upon any Event of Default as set forth in the Note, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by Trustor. Deed of Trust Exhibit "D" 9 20. Breach by Trustor, Cure by Beneficiary or Trustee. In the event of Trustor's failure to comply with any or all of the promises and agreements set forth in this Deed of Trust or to make any payment or to do any act as provided in this Deed of Trust, then Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may make or do the same in such manner and to such extent as either in its sole judgment may deem necessary to protect the security hereof (including, without limitation, to procure insurance and pay the premiums therefor; to pay unpaid water rents, sewer service charges, and other governmental or municipal charges and rates, and all or any part of the unpaid taxes, assessments, and reassessments, if in its judgment the same are just and valid; to pay the cost of appraisals, reappraisals, and extensions of title; to enter or have its agents enter upon the Property whenever reasonably necessary for the purpose of inspecting the Property or making repairs or installations as it deems necessary to preserve the Property or to protect the same from vandalism, without thereby becoming liable as a trespasser or mortgagee or beneficiary in possession, and to pay for such repairs and installations). Beneficiary and Trustee are hereby authorized to enter upon the Property for such purposes; to appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; to pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, to pay necessary expenses, employ counsel of its choice and pay the reasonable fees of such counsel. Trustor agrees to pay immediately and without demand all sums so expended by Beneficiary or Trust- ee, with interest from the date of expenditure at the amount allowed by law in effect at the date hereof, and that Beneficiary shall have a lien upon the Property for the sums so expended and such interest thereon. 21. Security Agreement. That all property covered by this Deed of Trust be deemed to constitute real property or interests in real property to the maximum extent permitted under applicable law. To the extent that any tangible property, equipment or other property covered by this Deed of Trust constitutes personal property, such personal property shall constitute additional security. This Deed of Trust shall create in Beneficiary a security interest in such personal property and shall in respect thereof constitute a security agreement (the "Security Agreement"). Beneficiary shall be entitled to all of the rights and remedies in respect of any personal property included in the Property covered by this Deed of Trust afforded a secured party under the Uniform Commercial Code and other applicable law. At Beneficiary's request Trustor will at any time and from time to time fumish Beneficiary for filing financing statements signed by Trustor in form satisfactory to Beneficiary. Trustor acknowledges and agrees that thirty (30) days' notice as to the time, place and date of any proposed sale of any personal property shall be deemed reasonable for all purposes. Trustor agrees that the Security Agreement created hereby shall survive the termination or reconveyance of this Deed of Trust unless Beneficiary executes documentation expressly terminating the Security Agreement. 22. Assumption of Liability. Except as provided in Section 33, the assumption of liability for the payment of the indebtedness hereby secured, by any successor in interest to Trustor in the Property (in the event Beneficiary elects not to accelerate the repayment of the Loan pursuant to any transfer or disposition of the Property by operation of law or otherwise) Deed of Trust Exhibit "D" 10 shall not release Trustor from any liability Trustor has hereunder or under the other Loan Documents for the payment of such indebtedness or any sums advanced under and secured by this Deed of Trust. Any forbearance or indulgence of Beneficiary, or extensions of time for the payment of all or any part of the indebtedness secured hereby, or the release of a part of the Property from the lien of this Deed of Trust, for, or without, payment of a consideration, shall not in any manner diminish or reduce the liability of Trustor (subject to the nonrecourse provisions of Section 27) for the payment of the indebtedness now or hereafter secured hereby; and that any payments made upon the said indebtedness shall be deemed to have been made on behalf and for the benefit of all parties obligated to pay the same. The acceptance of payments in excess of the installments provided to be paid upon the Note or the consideration paid for any such release shall not alter or diminish the obligation of Trustor to thereafter make payments in the amounts and on the dates provided therein, until the same are fully paid. 23. Future Advances. That upon the request of the Trustor or its successor in ownership of the Property, Beneficiary may, at its option, at any time before full payment of the Note secured hereby, make further advances to the Trustor or its successors in ownership, and the same, with interest and late charges as permitted by law, shall be secured by this Deed of Trust; and provided further that if Beneficiary, at its option, shall make a further advance or advances as aforesaid, the Trustor or its successors in ownership agree to execute and deliver to Beneficiary a note to evidence the same, payable on or before the maturity of the indebtedness under the Note secured hereby and bearing such other terms as Beneficiary shall require. Trustor further acknowledges and agrees: that this Deed of Trust is intended to, and shall, secure not only the original indebtedness under the Note, but any and all future advances made by Beneficiary to Trustor; that this Deed of Trust shall secure any unpaid balances of advances made with respect to the Property; that Beneficiary shall have the benefit of all statutes now existing or henceforth enacted to assure repayment of any such future advances plus interest thereon; that to secure the payment of said original indebtedness and future advances Beneficiary shall also have a lien upon all other personal property and securities now or hereafter in its possession belonging to Trustor; that all rights, powers and remedies conferred upon Beneficiary herein are in addition to each and every other right which Beneficiary has hereunder; that all rights, powers and remedies conferred upon Beneficiary in equity or by law may be enforced concurrently therewith; that Beneficiary shall be subrogated to the rights and seniority of any prior lien paid or released by reason of the application thereon of any of the proceeds hereof, and that each and all of the covenants, agreements, and provisions hereof shall bind the respective heirs, executors, administrators, successors, and assigns of Trustor and Beneficiary herein, and all others who subsequently acquire any right, title, or interest in the Property, or to this Deed of Trust and the indebtedness secured hereby. 24. Captions. That the captions of the sections of this Deed of Trust are for convenience only and shall not be considered in resolving questions of interpretation or construction. 25. Estoppel Certificates. That Trustor shall from time to time at Beneficiary's request furnish Beneficiary or any person designated by Beneficiary, a certified statement in Deed of Trust Exhibit "D" 11 form reasonably satisfactory to Beneficiary confirming as of the date of the certificate the unpaid principal balance and accrued interest on the Note and stating that Trustor is not in default hereunder (or describing any default), and stating that Trustor has no defense, right of set off or counterclaim in the payment of the indebtedness, or any part thereof, or the observance or performance of any obligation (or describing any such defense, set off or counterclaim). Any purchaser or assignee of the Note or this Deed of Trust or any interest therein may rely on such certificate. 26. Books and Records. That Trustor and all subsequent owners of the Property, if any, shall keep and maintain full and correct books and records showing in detail the earnings and expenses of the Property and shall permit Beneficiary at no expense to Trustor or its representatives to examine such books and records and all supporting data and vouchers, from time to time at reasonable times, on request, at Trustor's offices or at another mutually agreed upon location. 27. Obligation Nonrecourse. Except to the extent any Event of Default hereunder results directly or indirectly from any fraud or intentional and material misrepresentation by Borrower in connection with the Loan, the Loan is a nonrecourse obligation of Trustor and in the event of the occurrence of an Event of Default, Beneficiary's only recourse under this Deed of Trust shall be against the Property, the proceeds thereof, the rents and other income arising from its use and occupancy as provided in the Deed of Trust, and any other collateral given to Beneficiary as security for repayment of the Loan. 28. Fixture Filing. This Deed of Trust is also a fixture filing with respect to the personal property which is or is to become fixtures on the Property, and is to be recorded in the real property records of Los Angeles County, California. 29. Assignment of Rents. All of the existing and future rents, royalties, income, and profits of the Property that arise from its use or occupancy are hereby absolutely and presently assigned to Beneficiary. However, until Trustor is in default under this Deed of Trust, Trustor will have a license to collect and receive those rents, royalties, income and profits. Upon any Event of Default by Trustor, Beneficiary may terminate Trustor's license in its discretion, at any time, without notice to Trustor, and may thereafter collect the rents, royalties, income and profits itself or by an agent or receiver. No action taken by Beneficiary to collect any rents, royalties, income or profits will make Beneficiary a "mortgagee -in -possession" of the Property, unless Beneficiary personally or by agent enters into actual possession of the Property. Possession by a court -appointed receiver will not be considered possession by Beneficiary. All rents, royalties, income and profits collected by Beneficiary or a receiver will be applied first to pay all expenses of collection, and then to the payment of all costs of operation and management of the Property, and then to the payment of the indebtedness and obligations secured by the Deed of Trust in whatever order Beneficiary directs in its absolute discretion and without regard to- the adequacy of its security. If required by Beneficiary, each lease or occupancy agreement affecting any of the Property must provide, in a manner approved by Beneficiary, that the tenant will recognize as its lessor any person succeeding to the interest of Trustor upon any foreclosure of this Deed of Trust. The expenses (including receivers' fees, if any, compensation to any agent appointed by Beneficiary, counsel fees, costs and compen- Deed of Trust Exhibit "D" 12 sation to any agent appointed by Beneficiary, and disbursements) incurred in taking possession and making such collection, shall be deemed a portion of the expense of this trust. The entering upon and taking possession of the Property, and/or the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Beneficiary may exercise any one or more of the remedies in this section without waiving its right to exercise any such remedies again or for the first time in the future. The foregoing shall be subject to the provisions of applicable law. 30. Applicable Law. This Deed of Trust shall be govemed by, and construed in accordance with, the laws of the State of California. 31. Approvals. Except with respect to those matters set forth hereinabove providing for the Beneficiary's approval, consent or determination to be at the Beneficiary's "sole discretion" or "sole and absolute discretion," the Beneficiary hereby agrees to act reasonably with regard to any approval, consent, or other determination given by the Beneficiary hereunder. The Beneficiary agrees to give Trustor written notice of its approval or disapproval following submission of items to the Beneficiary for approval, including, in the case of any disapproved item, the reasons for such disapproval. Any consent to a transfer under Section 33 of this Deed of Trust, and any other consent or approval by Beneficiary under this Deed of Trust or any of the other Loan Documents, may be given by Beneficiary's Executive Director without action of Beneficiary's governing board unless the Executive Director in his or her sole discretion elects to refer the matter to the board. 32. Good Faith and Fair Dealing. The Beneficiary and Trustor agree to perform all of their obligations and the actions required of each hereunder in good faith and in accordance with fair dealing. 33. Assignment of Interest. a. Without the prior written approval of the Beneficiary, which approval the Beneficiary may withhold in its sole and absolute discretion, Trustor shall not (i) sell, encumber, assign or otherwise transfer (collectively, "Transfer") all or any portion of its interest in the Property or the Project (excluding tenant leases pursuant to the terms of the Loan Agreement), (ii) permit the Transfer of greater than 49% of its ownership and/or control, in the aggregate, taking all transfers into account on a cumulative basis, or (iii) Transfer any of its rights or obligations under the Loan Documents. Notwithstanding the foregoing, Beneficiary consents to the events described in the last paragraph of Section 14.0 of the Loan Agreement without Trustor obtaining any further consent of Beneficiary. Trustor hereby agrees that any purported Transfer not approved by the Beneficiary as required herein shall be ipso facto null and void, and no voluntary or involuntary successor to any interest of Trustor under such a proscribed Transfer shall acquire any rights pursuant to the Loan Agreement or this Deed of Trust. b. At any time Trustor desires to effect a Transfer hereunder, Trustor shall notify the Beneficiary in writing (the "Transfer Notice") and shall submit to the Beneficiary Deed of Trust Exhibit "D" 13 for its prior written approval (i) all proposed agreements and documents (collectively, the "Transfer Documents") memorializing, facilitating, evidencing and/or relating to the circumstances surrounding such proposed Transfer, and (ii) a certificate setting forth representations and warranties by Trustor and the proposed transferee to the Beneficiary sufficient to establish and ensure that all requirements of this Section 33 have been and will be met. No Transfer Documents shall be approved by the Beneficiary unless they expressly provide for the assumption by the proposed transferee of all of Trustor's obligations under the Loan Documents. The Transfer Notice shall include a request that the Beneficiary consent to the proposed Transfer and shall also include a request that Trustor be released from further obligations under the Loan Documents. The Beneficiary agrees to make its decision on Trustor's request for consent to such Transfer, as promptly as possible, and, in any event, not later than thirty (30) days after the Beneficiary receives the last of the items required by this Section 33. In the event the Beneficiary consents to a proposed Transfer, then such Transfer shall not be effective unless and until the Beneficiary receives copies of all executed and binding Transfer Documents which Transfer Documents shall conform with the proposed Transfer Documents originally submitted by Trustor to the Beneficiary. From and after the effective date of any such Transfer, Trustor shall be released from its obligations under this Deed of Trust and the other Loan Documents accruing subsequent to such effective date. c. Notwithstanding anything in this Deed of Trust to the contrary, Trustor agrees that it shall not be permitted to make any Transfer, whether or not the Beneficiary consent is required therefor and even if the Beneficiary has consented thereto, if there exists an Event of Default under this Deed of Trust at the time the Transfer Notice is tendered to the Beneficiary or at any time thereafter until such Transfer is to be effective. d. The provisions of this Section 33 shall apply to each successive Transfer and proposed transferee in the same manner as initially applicable to Trustor under the terms set forth herein. Deed of Trust Exhibit "D" 14 IN WITNESS WHEREOF, the undersigned have executed this Deed of Trust as of the date first above written. TRUSTOR: CASA FAMILIAR, INC., a California non-profit public benefit corporation By: Andrea Skorepa Its: President/CEO By: BENEFICIARY: CITY OF NATIONAL CITY, a public body corporate and politic By: RON MORRISON, Mayor City Attorney By: George H. Eiser III, Legal Counsel Deed of Trust Exhibit "D" 15 STATE OF CALIFORNIA ) ss. COUNTY OF SAN DIEGO ) On before me, Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature STATE OF CALIFORNIA ) ss. COUNTY OF SAN DIEGO On before me, Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature Deed of Trust Exhibit "D" 16 STATE OF CALIFORNIA ) ) ss. COUNTY OF SAN DIEGO ) On before me, Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature Deed of Trust Exhibit "D" 17 RECORDING REQUESTED BY AND AFTER RECORDATION, MAIL TO: CITY OF NATIONAL CITY 1243 National City Boulevard National City, CA 91950 Attn.: Community Development Manager/Housing (Space Above Line for Recorder's use) This Agreement is recorded at the request and for the benefit of the City of National City and is exempt from the payment of a recording fee pursuant to Government Code Section 6103. EXHIBIT "E" TO LOAN AGREEMENT COVENANTS, CONDITIONS, AND RESTRICTIONS (HOME — PROJECT NO. 09-02) THIS AGREEMENT CONTAINING COVENANTS, CONDITIONS, AND RESTRICTIONS ("Agreement") is executed as of the day of , 200 by and between the CITY OF THE CITY OF NATIONAL CITY, a public body corporate and politic ("City") and CASA FAMILIAR, INC. ("Owner"), with reference to the following: A. The City and Owner are parties to a Loan Agreement ("Loan Agreement") dated as of the day of , 2009, on the terms and conditions of which Owner shall borrow from the City, and the City shall lend to Owner, the original principal amount of EIGHT HUNDRED THIRTY- FIVE THOUSAND AND Dollars ($835,000) (the "Loan") for the purpose of providing financing for the housing development described in the Loan Agreement (the "Project"). The Project will be developed on a site legally described on Exhibit "A" to this Agreement (the "Site"). B. Unless otherwise expressly provided, all defined terms used in this Agreement shall have the defined meanings provided for in the Loan Agreement. NOW THEREFORE, in consideration of the representations, covenants, and obligations of Owner contained in this Agreement, Owner, on behalf of itself and its successors and assigns, hereby covenants and agrees as follows: (1) Use of the Property. a. Limitations on Tenants. Notwithstanding anything to the contrary in this Agreement, Owner hereby covenants on behalf of itself, and its successors and assigns, which covenant shall run with the land and bind every successor and assign in interest of Owner, that, throughout the fifty five (55) Year term of this Agreement ("Term") commencing on the date of this Agreement, Owner and such successors and assigns shall use the Site solely for the Covenants, Conditions & Restrictions Exhibit "E" 1 purpose of developing and operating the Project as a residential rental development consisting of 10 dwelling units, which shall be operated in accordance with the terms of this Agreement. Of the 10 total dwelling units in the Project, 6 units (the "HOME Assisted Units") shall be income -restricted and rented only at an "Affordable Housing Cost" to low and very -low income households. Two two -bedroom units shall be for very -low income households (50% Area Median Income) and four two -bedroom unit shall be for families under 60% Area Median - income. HOME Assisted Units shall be floating units and dispersed throughout the Project, and shall be no less attractive or desirable on average (whether because of convenient access, views, amenities, or other reasons) than the other Project units, if any, that are not HOME Assisted Units. Subject to the reasonable approval of the City's Executive Director (or his or her designee), the location of the HOME Assisted Units within the Project may be changed from time by Owner. "Very Low -Income Households" shall mean persons and families whose gross annual household incomes do not exceed the qualifying limits for lower income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, which qualifying limits are otherwise set forth in Section 6932 of the California Code of Regulations and are equivalent to fifty percent (50%) of Area Median Income, adjusted for family size and other adjustment factors by the United States Department of Housing and Urban Development (HUD). "Low -Income Households" shall mean persons and families whose gross annual household incomes do not exceed the qualifying limits for lower income families as established and amended from time to time pursuant to Section 8 of the United States Housing Act of 1937, which qualifying limits are otherwise set forth in Section 6932 of the California Code of Regulations and are equivalent to sixty percent (60%) of Area Median Income, adjusted for family size and other adjustment factors by the United States Department of Housing and Urban Development (HUD). "Affordable Housing Cost" for a Very -Low Income household shall mean, as to each Eligible Person, a rental rate which results in monthly payments which, including a reasonable utility allowance, do not exceed for an Eligible Person within a Very Low -Income Household, the lesser of the product of thirty percent (30%) times fifty percent (50%) of Area Median Income adjusted for family size appropriate to the Assisted Unit, or the Low HOME Rent established by HUD; and "Affordable Housing Cost" for a Low -Income household shall mean, as to each Eligible Person, a rental rate which results in monthly payments which, including a reasonable utility allowance, do not exceed for an Eligible Person within a Low -Income Household, the lesser of the product of thirty percent (30%) times fifty percent (60%) of Area Median Income adjusted for family size appropriate to the Assisted Unit, or the High HOME Rent established by HUD; and "Area Median Income," or "AMI," shall mean the median income for San Diego/Carlsbad San Marcos Metropolitan Statistical Area as adjusted for family size and defined Covenants, Conditions & Restrictions Exhibit "E" 2 by the United States Department of Housing and Urban Development (HUD), or any successor entity designated under state law as responsible for establishing such "Area Median Income." Owner shall specifically provide in each HOME Assisted Unit lease and shall strictly enforce the requirement that each HOME Assisted Unit be occupied at all times by the eligible household who has leased that HOME Assisted Unit, and that any other occupant of the unit be another qualified member of the lessee's household. The City shall be identified as a third party beneficiary of that covenant and shall have the right to directly enforce that restriction in the event Owner fails to do so. Prior to execution of any HOME Assisted Unit lease with respect to the Project, Owner shall submit to the City and obtain its written approval of a standard form occupancy lease and Owner shall thereafter use the approved form for all leases of HOME Assisted Units in the Project, with only such further modifications thereto as are first submitted to and approved in writing by the City. The covenants described in this Agreement shall remain in effect through the 55- year Term of this Agreement, notwithstanding the earlier repayment of the Loan by Owner. b. Tenant Selection Process; Reports and Records Concerning Tenancies. Owner shall maintain such records and satisfy such reporting requirements as may be reasonably imposed by the City to monitor compliance with the tenanting requirements described in Paragraph (1)a above, including without limitation the requirement that Owner deliver reports to the City commencing at the close of the initial occupancy of the Project, and continuing annually thereafter, setting forth the name of each tenant, the unit occupied and the income of the tenant and the amount of rent payable by each tenant. Owner shall also be required to have each prospective tenant complete a rental application prior to occupancy and to obtain evidence from each such tenant as may be reasonably required by the City to certify such tenant's qualification for occupancy of the Project. Owner's obligation to provide such reports shall remain in force and effect for the same duration as the use covenants set forth in this Paragraph (1). c. Owner shall provide, in accordance with the Supportive Services Agreement or description of services attached to this Agreement as Exhibit "N", certain supportive services for residents of the Project, as described in the Exhibit "N" throughout the Term of this Agreement. (2) Management of Project. Subject to the terms and conditions contained hereinbelow, Owner shall at all times during the operation of the Project pursuant to this Agreement either manage the project itself or retain an entity to perform the management and/or supervisory functions ("Manager") with respect to the operation of the Project, including clay -to -day administration, maintenance and repair. If applicable, Owner shall, before execution or any subsequent amendment or replacement thereof, submit and obtain The City's written approval (which shall not be unreasonably withheld, conditioned or delayed) of a management contract ("Management Contract") entered into between Owner and an entity ("Management Entity") reasonably acceptable to the City. Subject to any regulatory or licensing requirements of any other applicable governmental agency, the Management Contract may be for a term of up to fifteen Covenants, Conditions & Restrictions Exhibit "E" 3 (15) years and may be renewed for successive terms in accordance with its terms, but may not be amended or modified without the written consent of the City. The Management Contract shall also provide that the Management Entity shall be subject to termination for failure to meet project maintenance and operational standards set forth herein or in other agreements between Owner and the City. Owner shall promptly terminate any Management Entity which commits or allows such failure, unless the failure is cured within a reasonable period in no event exceeding 60 days from Management Entity's receipt of notice of the failure from Owner or the City. Owner's obligation to retain a Management Entity shall remain in force and effect for the same duration as the use covenants set forth in Paragraph (1) of this Agreement. (3) Operations and Maintenance. Owner hereby covenants on behalf of itself, and its successors and assigns, which covenant shall run with the land and bind every successor and assign in interest of Owner, that Owner and such successors and assigns shall use the Site solely for the purpose of constructing and operating the Project and ancillary improvements thereon, in accordance with and of the quality prescribed by this Agreement, the Loan Agreement and the Deed of Trust (as defined in the Loan Agreement). Owner covenants and agrees for itself, its successors and assigns, which covenants shall run with the land and bind every successor or assign in interest of Owner, that during development of the Site pursuant to this Agreement and thereafter, neither the Site nor the Project, nor any portion thereof, shall be improved, used or occupied in violation of any Applicable Governmental Restrictions (as defined below) or the restrictions contained in this Agreement. Furthermore, Owner and its successors and assigns shall not maintain, commit, or permit the maintenance on the Site or in the Project, or any portion thereof, of any nuisance, public or private, as now or hereafter defined by any statutory or decisional law applicable to the Site or the Project, or any portion thereof. Owner shall, at its expense, (i) maintain all improvements and landscaping on the Site in first-class order, condition, and repair (and, as to landscaping, in a healthy and thriving condition) in accordance with the plans for the Project approved by the City in accordance with the Loan Agreement and all Applicable Governmental Restrictions, and (ii) manage the Project and Project finances reasonably prudently and in compliance with Applicable Governmental Restrictions so as to maintain a safe and attractive living environment for Project residents. (4) Special Provisions for City of National City In the event the City determines that the Owner has failed to reasonably maintain any portion of the Property, the City may, at its discretion, provide written notice to the Owner of such determination. Should the Owner fail to perform such maintenance within a thirty (30) day period after receiving such notice; the City shall have the right, but not the obligation, to perform such maintenance, in which event the Owner shalt be obligated to reimburse the City for its full cost reasonably incurred, including overheard costs. The City shall be entitled to any and all lien rights provided by law in the event the Owner fails to so reimburse the City within thirty (30) days after receiving the City's Covenants, Conditions & Restrictions Exhibit "E" 4 statement for such maintenance costs. No amendment of this Section shall be effective without the prior written consent of the City of National City. (5) Owner's Obligation to Refrain From Discrimination. There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Site, nor shall Owner itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Site or any portion thereof. The nondiscrimination and nonsegregation covenants set forth herein shall remain in effect in perpetuity. Owner shall refrain from restricting the rental, sale or lease of the Site or any portion thereof on the basis of race, color, creed, religion, sex, marital status, national origin, or ancestry of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: a. In deeds: "The grantee herein covenants by and for himself or herself, and his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the land herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the land herein conveyed. The foregoing covenants shall run with the land." b. In leases: "The lessee herein covenants by and for himself or herself, and his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the land herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the land herein leased." c. In contracts: "There shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the parties to this contract or any person claiming under or through them, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, Covenants, Conditions & Restrictions Exhibit "E" 5 number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the premises." Nothing in this Paragraph shall be construed or understood to limit, restrict or in any way waive the income requirements described in this Agreement. (8) Covenants Run With the Land; Duration of Covenants. The covenants and agreements established in this Agreement shall be covenants running with the land and shall, without regard to technical classification and designation, be binding on Owner and any successor -in -interest to Owner's interest in the Site, or any part thereof, for the benefit of and in favor of the City and its successors and assigns. The covenants of this Agreement shall remain in effect through the Term, notwithstanding the repayment of the Loan by Owner prior to the Maturity Date. The covenants contained in Paragraph 7 of this Agreement shall remain in effect in perpetuity. The Improvements to the curbline(s) and the maintenance thereof touch and concern the Site and inure to the benefit of any and all present or successive owners of the Site. Therefore, whenever the word "owner" is used herein, it shall include the owner as of date of execution of this Agreement, and any and all successor owners or assigns of the Site, and the provisions hereof are expressly binding upon all such successive owners and assigns and the parties agree all such provisions shall run with the land. The City shall cause a fully executed copy of this Agreement to be recorded in the Office of the San Diego County Recorder. Notwithstanding the foregoing, in the event Owner or its successors or assigns shall convey its leasehold interest in all or any portion of the Site, the conveying owner shall be free from and after the date of recording such conveyance of all liabilities, respecting the performance of the restrictions, covenants or conditions contained in this Agreement thereafter to be performed with respect to the Site, or any part thereof, it being intended that the restrictions, covenants and conditions shall be binding upon the record owners of the Site only during such time as that person is the owner of the Site, provided that the conveying owner shall remain liable for any actions prior to the date of the conveyance. (9) Enforcement. In amplification and not in restriction of the provisions set forth hereinabove, it is intended and agreed that the City shall be deemed the beneficiary of the terms and provisions of this Agreement and of the restrictions and covenants running with the land for and in its own right and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit the covenants running with the land have been provided. Each covenant of Owner, shall, without regard to technical classification and designation, inure to the benefit of the successors, transferees and assigns of the City for the entire period during which such covenants shall be in force and effect, and shall be binding upon the successors, transferees and assigns of Owner, whether by merger, consolidation, sale, transfer, liquidation or otherwise. Each covenant in favor of the City is for the benefit of the real property owned by the City in the area surrounding the Site. The covenants herein running with the land shall also be equitable servitudes upon the Site and each part thereof and shall bind each and every person having any interest in the Site or part thereof, whether such interest is fee, easement, leasehold, beneficial or otherwise, and each successor or assign of such person having any such interest in the Site or part thereof. The City shall have the right if any of the covenants set forth in this Agreement which are provided Covenants, Conditions & Restrictions Exhibit "E" 6 for its benefit are breached, to exercise all rights and remedies and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach to which it may be entitled. In the event that suit is brought for the enforcement of this Agreement or as the result of any alleged breach hereof, the prevailing party or parties in such suit shall be entitled to recover their reasonable attorneys' fees from the losing party or parties, and any judgment or decree rendered in such proceedings shall include an award thereof. Except for the City, the covenants and restrictions contained in this Agreement shall not benefit or be enforceable by any owner of any other real property or any person or entity having any interest in any such other real property. (10) Compliance with Law. Owner shall comply with all Applicable Governmental Restrictions relating to the uses of or condition of the Site private improvements and public improvements to the curbline(s). Local laws for the purposes of this paragraph shall include only those ordinances which are nondiscriminatory in nature and applicable to the public welfare, health, safety and aesthetics. If any new local laws relating to the uses of or condition of the improvements create a condition or situation that constitutes a lawful nonconforming use as defined by local ordinance with respect to the Site or any portion thereof, then so long as the lawful nonconforming use status remains in effect (i.e., until such lawful status is properly terminated by amortization as provided for in the new local law or otherwise), Owner shall be entitled to enjoy the benefits of such lawful nonconforming use pursuant to the lawful nonconforming uses ordinance. (11) Indemnification and Insurance. From and after the execution of this Agreement, Owner hereby agrees to indemnify and hold harmless the City and all its members, directors, agents, officers and employees ("City Representatives"), and each of them, from and against all liability, expense, including reasonable defense costs and legal fees of counsel acceptable to the City, and claims ("Losses and Liabilities") related directly or indirectly to, or arising out of or in connection with (i) any breach or default by Owner hereunder, (ii) any of Owner's activities on the Site (or the activities of Owner's agents, employees, lessees, representatives, licensees, guests, invitees, contractors, subcontractors or independent contractors on the Site), including without limitation the construction of any improvements on the Site or the use or condition of any such improvements, or (iii) any other fact, circumstance or event related to Owner's performance hereunder; provided, however, that the foregoing indemnity shall not extend to any Losses and Liabilities to the extent resulting from the negligence or misconduct of the City and/or any the City Representatives. Without limiting Owner's indemnification of the City as set forth above, upon Owner obtaining record title to the Site, Owner shall provide and maintain at its sole cost and expense for the periods stated below, the following insurance program from insurers admitted in California or having a minimum rating of or equivalent to A:VIII in Best's Insurance Guide: a. Comprehensive liability insurance, including coverage for personal injury, death, property damage and contractual liability, with a combined single limit of at least one million dollars ($1,000,000) for each occurrence ($2,000,000 General Aggregate), including products and completed operations coverage. The City and all the City Representatives shall be carried as additional insureds with respect to liability arising from activities performed by or on behalf of Owner, premises owned, leased or Covenants, Conditions & Restrictions Exhibit "E" 7 used by such persons. Said insurance shall be primary insurance with respect to the City. Said insurance shall be maintained continuously for as long as Owner shall own the Site, and shall be endorsed to require thirty (30) days prior written notice from insurer to the City before cancellation or reduction in coverage. Owner shall require its contractor to include the City and the City Representatives as additional insureds on all general liability insurance covering work at the Site. The policy shall contain a waiver of subrogation for the benefit of the City. b. "All Risk" ISO Special Form property insurance. Coverage shall include debris removal and shall provide protection for earthquake and flood if this protection is available from responsible carriers at reasonable costs. The City shall be the loss payee under the aforementioned policy(ies) under a standard lender's loss payable endorsement. The amount of property coverage shall at all times exceed the full replacement value of all improvements and fixtures on the Property, and the insurer shall waive any coinsurance via an "agreement" endorsement. c. Worker's Compensation insurance as required by the Labor Code of the State of California and Employer Liability limits of $1,000,000 per accident. d. Automobile Liability insurance with a combined single limit of at least One Million Dollars ($1,000,000) per accident for bodily injury and property damage, covering owned, nonowned and hired vehicles. Owner shall annually (or more frequently in the event of a change of insurer or policy) deliver to the City certificates of insurance with original endorsements evidencing the coverage required by this Agreement. The certificates and endorsements shall be signed by a person authorized by the insurers to bind coverage on its behalf. The City reserves the right to require complete certified copies of all policies at any time. Said insurance may provide for such deductibles or self -insured retention as may be reasonably acceptable to the City. In the event such insurance does provide for deductibles or self insurance, Owner agrees that it will protect the City and the City Representatives in the same manner as these interests would have been protected had full commercial insurance been in effect. If required by the City from time to time, Owner shall reasonably increase the limits of its liability insurance to reasonable amounts customary for owners of improvements similar to those on the Site. Failure on the part of Owner to procure or maintain required insurance shall constitute a material breach of this Agreement under which the City may, at the discretion of the City, procure or renew such insurance and pay any and all reasonable premiums in connection therewith, and all monies so paid by the City shall be repaid by Owner to the City upon demand. (12) Bodily Injury and Site Damage Insurance Requirements. Owner shall indemnify, defend, assume all responsibility for and hold .the City and its officers, employees, and agents harmless from all claims or suits for, and damages to, property and injuries to persons, including accidental death (including attorneys' fees and court costs), which result from any of Owner's activities under this Agreement, whether such activities or performance thereof Covenants, Conditions & Restrictions Exhibit "E" 8 be by Owner or anyone directly or indirectly employed or contracted with by Owner and whether such damage shall accrue or be discovered before or after termination of this Agreement. Owner shall furnish a certificate of insurance and endorsement countersigned by an authorized agent of the insurance carrier on a form of the insurance carrier setting forth the general provisions of the insurance coverage. This countersigned certificate and endorsement shall name the City, and if available, its officers, agents, and employees, as additional insureds under the policy. The certificate by the insurance carrier shall contain a statement of obligations on the part of the carrier to notify the City of any material change, cancellation or termination. Coverage provided hereunder by Owner shall be primary insurance and not contributing with any insurance maintained by the City, and the policy shall contain such an endorsement. The insurance policy or the certificate of insurance shall contain a waiver of subrogation for the benefit of the City. (13) Waiver. Failure or delay by either party to perform any term or provision of this Agreement constitutes a default under this Agreement. The aggrieved party shall give written notice of the default to the party in default in accordance with Paragraph (16)e hereof. The defaulting party shall no longer be in default if the defaulting party cures such default within thirty (30) days after receiving the Default Notice; provided, however, that if such default cannot be reasonably cured within such thirty (30) day period, the defaulting party shall be given such longer period as reasonably necessary (which in the case of a default by Owner shall be as reasonably determined by the City) and the defaulting party shall no longer be in default if it commences to cure such default within such thirty (30) day period and completes such cure with reasonable and due diligence. The waiver by one party of the performance of any covenant, condition, or promise shall not invalidate this Agreement nor shall it be considered a waiver by such party of any other covenant, condition or promise hereunder. The exercise of any remedy shall not preclude the exercise of other remedies the City or Owner may have at law or at equity. (14) Modification. This Agreement may be modified only by subsequent mutual written agreement executed by Owner and the City. (15) Attorney's Fees. In the event of litigation arising out of any breach of this Agreement, the prevailing party shall be entitled to recover reasonable costs and attorney's fees. (16) Miscellaneous Provisions. a. Interpretation. The provisions of this document shall be liberally construed to effectuate its purpose. Time is of the essence of this Agreement. b. Severability. Invalidation of any of the covenants, conditions, restrictions, or other provisions contained in this Agreement by judgment or court order shall in no way affect any of the other covenants, conditions, restrictions, or provisions hereof, which shall remain in full force and effect. Covenants, Conditions & Restrictions Exhibit "E" 9 c. Headings. The caption headings of the various sections and paragraphs of this Agreement are for convenience and identification only, and shall not be deemed to limit or define the contents of their respective sections or paragraphs. d. Effective Date. This Agreement shall take effect upon its recording in the Office of San Diego County Recorder. e. Notices. Formal notices, demands, and communications between the City and Owner shall be given either by personal service, by overnight courier, or by mailing in the United States mail, certified mail, postage prepaid, return receipt requested, addressed to the principal offices of the City or Owner, as follows: If to the City: If to Owner: City of National City 1243 National City Boulevard National City, California 91950 Attn: Executive Director Casa Familiar, Inc. 119 W. Hall Street San Ysidro, CA 92037 Attn: President & CEO Notices shall be effective upon receipt, if given by personal delivery, the earlier of (i) three (3) business`days after deposit with United States Mail, or (ii) the date of actual receipt as evidenced by the return receipt, if delivered by certified mail, or (iii) one (1) day after deposit with the delivery service, if delivered by overnight guaranteed delivery service. Each party shall promptly notify the other party of any change(s) of address to which notice shall be sent pursuant to this Agreement. f. Exhibits. Each Exhibit mentioned in this Agreement is attached hereto and incorporated herein by this reference. 9. Execution in Counterparts. The parties may execute this document in two or more counterparts; each counterpart shall be deemed an original instrument as against any party who has executed it. Covenants, Conditions & Restrictions Exhibit "E" 10 IN WITNESS WHEREOF, the City and Owner have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized as of date first written above. CITY: CITY OF NATIONAL CITY, a Public Body Corporate and Politic By: RON MORRISON, Mayor APPROVED AS TO FORM: City Attorney By: George H. Eiser, III Legal Counsel OWNER: CASA FAMILIAR, INC., a California non-profit public benefit corporation By: Andrea Skorepa Its: President/CEO By: Covenants, Conditions & Restrictions Exhibit "E" 11 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of On before me, , personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public Place Notary Seal Above CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of On before me, , personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public Place Notary Seal Above Covenants, Conditions & Restrictions Exhibit "E" 12 Covenants, Conditions & Restrictions Exhibit "E" 13 EXHIBIT "A" TO CC&Rs LEGAL DESCRIPTION OF SITE Covenants, Conditions & Restrictions Exhibit "E" 14 EXHIBIT "B" TO CC&Rs City of National City ORDINARY MAINTENANCE AND REPAIRS Ordinary maintenance is the routine work of keeping the buildings, grounds, and equipment in such condition that they may be utilized continually at their original or designed capacities and efficiencies for their intended purposes. Minor repair is the restoration of the facility to a condition substantially equivalent to its original capacity. Minor replacement is the substitution of component parts of equipment to extend its useful life. In order to assure that the housing on the Site is kept in a decent, safe, and sanitary condition, the buildings, grounds, and equipment are to be maintained in a manner that will preserve their condition. "Grounds" includes lawns, roads, walks and other paved areas, trees and plants, fences, play areas, drainage facilities, etc. `Buildings" includes roofs, attic spaces, gutters and downspouts, walls, porches, foundations, crawl spaces, windows, floors, doors, etc. "Equipment" covers all items such as utility lines and piping, heating and plumbing equipment, pumps and tanks, ranges and refrigerators, tools, etc. Set forth below are the standards for the degree of maintenance, repair and cleaning necessary to qualify as "safe, decent and sanitary." The Standards describe the minimum level of cosmetic repair and degree of cleanliness necessary to effectively market the dwelling units and to satisfy the needs of prospective residents. In brief, rental units are to be free of all defects (as described herein) and have an appealing and desirable appearance. EXTERIOR PROPERTY AREAS A. Sanitation. Yards shall be clean and sanitary. All rubbish, garbage, trash, litter, debris, and abandoned personal property are to be removed from the grass, walks, steps, parking areas, and other grounds, as well as the roofs, gutters and window wells. B. Lawn Maintenance. Grounds shall be examined for proper drainage and, if necessary, graded to prevent the accumulation of stagnant water and to prevent water from seeping into building structures. All soil areas shall be sodded or seeded, as necessary, to prevent erosion, except garden areas at scattered sites. Weeds, saplings and uncut grass along the foundations of the house and garage, the fences, the walks, the parking areas, the sidewalk expansion joints and the window wells are to be removed. All grounds are to be free of noxious weeds. Bushes, hedges and trees are to be trimmed, if necessary. Grass shall be cut as often -as necessary so that it does not exceed five (5) inches in height. The yard will be raked, as necessary. C. Walks and Steps. Cracks and Breakage. All front walks, sidewalks, rear walks, steps, driveways and parking pads shall be maintained in such a manner that Covenants, Conditions & Restrictions Exhibit "E" 15 there are no cracks or heaves large enough to create a safety hazard. Remove chipped and loose pieces of concrete and asphalt, as needed. Remove all graffiti. EXTERIOR STRUCTURES -- DWELLING AND GARAGE D. Foundation, Walls, and Roof. All exterior surfaces shall be maintained in good repair. They shall be free of holes, significant cracks, breaks and loose materials to provide a sufficient covering for the underlying structural surface and prevent any moisture from entering the dwelling. If the protective surface is paint, and if more than 25% of the area is blistered, cracked, flaked, scaled, or chalked away, it shall be repainted, weather permitting. All dirt, unsightly stains and graffiti are to be removed. Prime doors shall open and close smoothly. Each prime door shall have a properly working dead bolt lock with a newly changed cylinder. E. Screens. Every window shall have a screen which fits tightly and securely to the frame. Each screen shall be free of holes large enough for insects to penetrate or tears longer than 1". F. Gutters and Downspouts. If the structure has gutters and downspouts, they are to be secured to the structure and free of leaves and other debris. G. Garage. Overhead and service doors are to open and close smoothly and lock. Remove all loose contents from the interior. Wipe up surface oil drippings and spills. Broom sweep the floor. H. Faucets. Faucets and handles shall work properly. I. Miscellaneous. Mailboxes, guardrails, railings, exterior lights, fences and clothes line poles shall be properly anchored. Doorbells shall operate properly. J. Wall Graffiti. Wall graffiti and other unsightly markings on exterior walls are to be removed daily. If the graffiti is offensive in nature (profanity, gang slogans, etc.) it will be removed immediately. Those deficiencies that are discovered during the winter that require warm weather to properly correct are to be noted for summer repair. INTERIOR PROPERTY AREAS K. Walls and Ceilings. All holes over one inch in diameter are to be filled. All cracks are to be filled or taped and plastered. All -holes of one inch in diameter or less are to be filled if they are present in sufficient number to give the surface an undesirable appearance. All patches are to be sanded smooth. All wet plaster shall be neatly primed. In cases of extensive repair, the entire wall shall be primed. Covenants, Conditions & Restrictions Exhibit "E" 16 L. Doors, Hardware, Room Trim, and Handrails. All surfaces shall be clean and ree of splashed or spilled paint. Doors shall open, close and latch smoothly and roperly. Door stops shall be installed for each door and be clean and intact. Handrails shall be secure. M. Floors, Stairs, Baseboards, and Corners. Remove all rubbish, garbage, trash, litter, debris and abandoned personal property. All surfaces shall be swept or vacuumed. Carpet, if installed, shall be vacuumed, and, if it smells badly, has paint spills, or is dirty or stained, shall be shampooed. N. Window Areas. Tracks shall be free from dust, dirt and debris and lubricated so that windows slide smoothly and close tightly. Frames and sills shall be free of dust, dirt and mod. Curtain rods are to be securely installed over each window opening unless drapery rods are already in place. New, or "like new", window shades are to be installed over each bedroom window and non -opaque bathroom window. Dispose of and replace drapes and curtains in poor condition or that are dirty. Window panes shall be intact, i.e., without holes, chips, missing pieces or cracks, except for short corner cracks. Reputty the windows, if necessary. Window locks and other hardware shall function properly. Electrical Fixtures, Outlets, Switch Plates, and Outlet Plates. Each light fixture socket shall have a working light bulb. Each light fixture in the living areas shall have a clean globe, lens or shade. Test each switch, socket, and outlet and repair, if necessary. Light switch cover plates and electrical outlet cover plates shall be clean, i.e., free of dirt, grease, grime and paint, and shall be in good condition and intact, i.e., free of chips and cracks. P. Plumbing Fixtures. Faucets shall have adequate water flow. Handles shall turn "on" and "off" easily and smoothly. Faucets shall not leak when "on" or "off." Each faucet shall have a properly installed and functioning aerator, if so designed. ii. Drains shall be tested by a 30-second Juke warm water run to assure no leakage. Water shall empty from the sinks and tubs quickly. The drain pipe shall look and feel dry. Each drain shall have a stopper or a basket. iii. Sinks and tubs shall be free of surface cracks or chips over one inch in length. iv. Toilets shall operate properly. Toilet seats and covers shall be in "like new" condition with no surface finish loss whatsoever. v. Other plumbing and related fixtures, such as kitchen sprayers, shower doors, and water main shutoffs shall work properly. Covenants, Conditions & Restrictions Exhibit "E" 17 Q. Cabinets. Kitchen, medicine and other storage cabinets doors and drawers shall open and close freely. The attendant hardware shall be clean, secure, and operate properly. R. Stoves. All parts shall work properly. The exhaust fan filter shall be changed or washed, if applicable. Each oven shall have an appliance bulb, broiler drip pan and cover and two oven racks. S. Heat Vents, Grilles, and Cold Air Return Grates. There shall be no broken or bent grille work. Grilles and grates shall be kept free of dirt, dust, grime and debris. T. Thermostat and Smoke Detector. The thermostat and smoke detector shall be clean, intact, free of paint and tested to operate properly. U. Basement. The ceiling, window openings, walls, pipes, ductwork, furnace and water heater are to be free of dirt, grease, spider webs and cobwebs. The floor shall be broom swept clean of loose dirt and litter. Windows and laundry tubs shall be washed if dirty. Laundry plumbing shall operate properly. Any basement bathroom interior and fixtures shall be kept clean. The furnace and water heater shall be tested to work properly, and furnace filter replaced as needed. Cap and close valve on unused gas lines. Seal dryer vent. V. Attic. Accessible attics shall be free of litter. W. Common Areas. The common areas and the entrances shall be inspected, repaired, and cleaned as necessary. X. Pest Control. The Site shall be free of all insect vermin. Remove all insect vermin. Inspect for other vermin and exterminate, if necessary. Covenants, Conditions & Restrictions Exhibit "E" 18 EXHIBIT "C TO CC&Rs City of National City ANNUAL INSPECTION STANDARDS In order to ensure that all units are maintained in a safe, sanitary, decent condition, the City shall conduct a planned annual physical inspection of each dwelling unit, every building, and all other facilities with a record of any item requiring repair or replacement. This will include such items as plaster repairs, painting, termite inspection, roof deterioration, overloading of electric circuits, corrosion control, floors, windows and screens, ranges, refrigerators, fixtures and equipment. The inspection shall be made to the following standard: DWELLING UNIT - FLOORS (CARPET): Clean; no tears; no readily noticed marks or stains. FLOORS (VINYL TILE): Clean; unbroken; no cracks; no unmatched tiles. WALLS (PAINTED): Clean; smooth, unbroken surface (no holes); no marks; no peeling paint; covering at floor intact, clean. WALLS (CERAMIC TILE): Tiles in place, secure, uncracked, unmarked (and free of paint); grout intact, uncracked, clean; covering at floor intact, clean. CEILINGS (SPACKLED): Clean, consistent texture; no marks; no surface breaks. WINDOWS: Clean; glass unbroken, uncracked; frames secure; latches secure and easily operated; movable parts operate smoothly and easily; screens in place, untorn, movable parts operate smoothly and easily; weather stripping intact and secure. DRAPES: In place; clean, uniform appearance; no holes, tear; operating mechanism in place, opens/closes smoothly and easily. DOORS: Door and jambs intact and secure; surface unbroken and with uniform, finished appearance; hardware (hinges, knobs, locks) operate smoothly and easily; door stops in place, secure. CLOSET FIXTURES: Rods, shelves in place, clean, unbroken and unmarked. ELECTRIC RECEPTACLES AND WALL SWITCHES: Fixtures and cover plates intact and unbroken; 110 volt service available; surfaces clean with no evidence of burns on the cover plates. Bathroom and kitchen receptacles protected by Ground Fault Interrupters. LIGHT FIXTURES: Lamps, sockets, covers and control devices in place, intact, clean, secure, unbroken and operable. Covenants, Conditions & Restrictions Exhibit "E" 19 HEATING, AIR COOLING EQUIPMENT: Thermostat operating properly (room temperature within 5 degrees of setting); heating zone valve leak -free; base -board heating fixtures intact, clean. VENTILATION FANS/HOODS: Fans and lights operable without excessive noise or vibration; filters in place, intact and clean. KITCHEN CABINETS: Doors, drawers, shelves and hardware in place, clean, intact; surfaces of smooth, unbroken, uniform appearance; all movable parts operate smoothly and easily. KITCHEN COUNTERTOPS: Surface smooth, unbroken, unmarked, uniform color. KITCHEN RANGE: External and internal surfaces intact and clean (including under top cover); controls function smoothly and easily, surface burners, bake and broil elements ignite and maintain design performance; doors and drawers operate smoothly and easily. GARBAGE DISPOSAL: Clean, intact, working properly without excessive nose; splashguard in place, intact, firm. SINKS: Faucets operate providing a sufficient flow of water (2 to 3 gallons/minute) and shut off free of drips; no evidence of water leakage on top of sink or at drain under sink; drains flow freely with no backup with faucets open fully; sink surface clean, unbroken with no marks or discoloration. BATHTUB/SHOWER: Faucets operate providing a sufficient flow of water (3 to 5 gallons/minute) and shut off free of drips; drains flow freely with no backup with faucets open fully; tub surface clean, unbroken with no marks or discoloration; grout intact, clean and unbroken; hot water temperature between 105 and 120 degrees (110 degrees at the tap recommended). MEDICINE CABINET: In place, intact, mounted securely; surface unbroken; mirror intact, dean, uncracked; shelves in place, clean, intact; door intact, operates smoothly and easily, closes securely. BATHROOM SINK COUNTERTOP: Clean, intact; surfaces of smooth, unbroken, uniform appearance. BATHROOM TOWEL BARS, GRAB BARS, SOAP DISH AND TOILET PAPER HOLDER: In place, clean, intact and secure. TOILET: Intact, mounted securely; no evidence of leakage at the wax ring; no evidence of softness or spring in the toilet base; flushed properly draining all- solid waste; after flush, tank refills quickly (20 to 30 seconds); no water leakage into the tank or into the bowl at completion of the flush cycle; seat secure, with clean unbroken surface. PESTS, VERMIN: No evidence of presence/infestation. Covenants, Conditions & Restrictions Exhibit "E" 20 SMOKE DETECTORS: Operate when tested with approved smoke -tester. SAFETY EQUIPMENT: Fire extinguishers inspected and adequately charged. INTERCOM AND REMOTE DOOR OPENER: Audible transmission and effective door latch operation. COMMON AREAS, GROUNDS AND STRUCTURES - LOBBY AND HALLWAY FLOORS (CARPET): Free of obstruction and litter; clean; no tears, marks, stains; carpet seams secure. LOBBY AND HALLWAY FLOORS (VINYL TILE): Free of obstruction and litter; clean; unbroken; no cracks; no unmatched tiles. WALLS AND CEILINGS (PAINTED): Clean; free of defacing; smooth, unbroken surface (no holes); no marks; no peeling paint; covering at floor intact, clean. INTERIOR AND EXTERIOR LIGHT FIXTURES: Lamps, sockets, covers and control devices in place, intact, dean, secure, unbroken and operable. DOORS: Door and frames intact and secure; surface unbroken and with uniform, finished appearance (free of defacing); hardware (hinges, knobs, locks) operate smoothly and easily; door stops in place, secure. MAILBOXES: Clean; clearly labeled; individual boxes secure. FIRE EXITS: Doors and exits smoothly and easily operable; signs clearly marked, visible secure and intact. UNIT ENTRANCES: Unit number clearly identified; doors secure (see Unit Inspection Form). TRASH ROOMS, MAINTENANCE SHOP AND STOREROOM AND UTILITY ROOMS: Clean, free of odors; doors in place and secure; stored items orderly. FIRE ALARM SYSTEMS: Inspected by safety inspectors within specified frequency. FIRE EXTINGUISHERS: In place; filled; inspected with specified frequency. ELEVATORS: Odor -free; floors and walls of cab clean, free of defacing, smooth, unbroken surface (no holes), no marks; doors working properly; floor buttons working properly; floor number clearly marked and visible in each hallway at the elevator exit; ventilation fan operating quietly; emergency call system functioning as designed; equipment inspected and maintenance work performed on contract schedule. Covenants, Conditions & Restrictions Exhibit "E" 21 DRIVEWAYS AND PARKING LOTS: Clean; Utter and graffiti -free; free of obstructions (especially abandoned or inoperable vehicles); surface unbroken, free of oil stains; painted stripes clearly visible; handicapped parking signs clearly visible. GROUNDS AND STRUCTURES SIDEWALKS AND STAIRWELLS: Clean; litter and graffiti -free; free of obstructions; smooth, unbroken surface (free of tripping hazards). UTILITY METERS: Intact, covers secure. TRASH AREAS: Free of debris; containers and covers secure, free of graffiti, in good repair. ROOFS: Surface unbroken; no sign of puddling; free of litter, foreign objects; flashing intact and sealed; stacks and vents free of obstruction; gutters and downspouts clean, clear and secure. LAWNS: Grass trimmed to no more than 3" high; litter -free; borders edged; weed -free; no bare spots. TREES AND SHRUBS: Trimmed and pruned in season; no obstruction of walkways or overhang. Covenants, Conditions & Restrictions Exhibit "E" 22 EXHIBIT "D" TO CC&RS City of National City PREVENTIVE MAINTENANCE STANDARDS (HOME — PROJECT NO. 08-02) Preventive maintenance based on regular methodical inspections is the action taken to avoid or minimize the need for more costly measures at some future time. It is performed prior to actual breakdown thereby preventing costly replacements and, in the case of operating equipment, lengthy shutdown. Effective preventive maintenance reduces Tong -range operating costs and lessens the necessity for major restorations and improvements. Preventive maintenance shall include, but is not limited to, the following, and shall include all other items affecting the health and safety of the tenants (pursuant to California Health & Safety Code .17910 et seq.): Scheduled checking, adjusting, cleaning, and lubricating heating equipment. Periodic inspection of ranges, hot water heaters, and space heaters for mechanical performance and for needed replacement of worn or broken parts. Inspecting, servicing, and replacing wom parts in electro-mechanical equipment. Checking and repairing plumbing fixtures, toilet tanks, drains, condition of porcelain, etc. Termite and vermin inspection and elimination, by a City licensed firm. Periodic interior and exterior painting. Inspecting and patching roofs, gutters, downspouts, and flashing. Inspecting underground facilities for corrosion and control thereof. Inspecting for condensation, dampness, and fungus in wood and for rust in iron components and taking appropriate corrective measures. Patching paved surfaces and sealcoating, as needed. Correcting erosion and drainage deficiencies. Fertilizing and cultivating planted areas. Installing protective barriers, where needed, for planted areas and trees. Checking fire safety equipment for operable use. Covenants, Conditions & Restrictions Exhibit "E" 23 Caulking around bathtubs, tiles, countertops, windows, and doors to avoid water damage. Administration and implementation of the preventative maintenance program shall be performed on the following schedule or a schedule approved by the City prior to implementation: 1. Annual Dwelling Inspections and Corrections 1 year 2. Heating Furnace Services: Minor Inspections and Services 3 months Major Inspections and Services 2 years 3. Fire Extinguisher and Alarm Inspections and Services 1 month 4. Range Hood and Motor Inspections and Services 1 year 5. Project Site Inspections and Corrections 1 year 6. Roofing Inspections and Corrections 1 year 7. Project Fencing Inspection 1 year 8. Security Lighting Inspections and Services 1 year 9. Trees and Shrubbery Inspections and Corrections 1 year 10. Water Heater Inspections and Services 1 year 11. Sewer Lift Station Inspections and Services 6 months 12. Septic Tank Inspections and Services 1 year 13. Street Pavement Inspections and Corrections 1 year 14. Weather Stripping and Caulking 1 year 15. Interior Painting of Units 5 years 16. Exterior Painting of Units: Wood siding and trim 3 years Brick walls, stucco walls and steel sash 5 years Covenants, Conditions & Restrictions Exhibit "E" 24 Covenants, Conditions & Restrictions Exhibit "E" 25 EXHIBIT F Donald A. Countryman Design Associates, Inc. 1011 Camino del Mar #258 Del Mar CA 92014 June 18, 2009 Mr. Brad Raulston, Redevelopment & Housing Director Mr. Alfredo Ybarra, Housing Director City of National City 1243 National City Blvd. National City, CA 91950 Gentlemen: Ph: (858) 794-6299 Fax: (858) 794-0793 E-mail - dacdesign 1 @mac.com SUBJECT: Rehabilitation Description - Casa Quinta, 304 E. 5th We reviewed the subject building for the purpose of developing a program for rehabilitation, design modification, and visual community presence of the structure and site. Aesthetics - The building was constructed in 1969 and is characterized by simple geometry and mass composition, a paucity of exterior detail and ornament, and poor visual and functional transitions to the street and neighborhood. Our program will address these issues through the addition of visually rich roof parapets, more complicated massing, new windows and doors, decorative wall treatments, balcony railings, window treatments, awning, and/or trellis applications, building finish and texture, building colors, landscaping, fencing that will include parking screening and building mass attenuation. Given the corner site, the program will focus on achieving a substantial improvement of the visual appeal of the building and site to the street and neighborhood. Functionality and Useful Life: On the functional side, we plan the following improvements: 1. Roof covering, roof insulation to R-21 min., roof drains 2. Improved water quality control, permanent BMPS 3. Operable skylights on the upper floors for passive cooling 4. New windows and doors with high performance glazing 5. Improved window shading 6. Code compliant balcony railings and stair handrails 7. Balcony surface finish 8. High efficiency lighting 9. Exterior acrylic finish 10. Appropriate landscaping for solar heating and shading 11. Interior improvements to include, in certain units as needed, heaters, plumbing fixtures, flooring, bath and kitchen countertops, and painting. 12. Electrical safety improvements, smoke detection, bathroom fans, and make up air for interior gas appliances. 13. Subject to city approval, striped angled parking on property frontage on C St to increase parking. Sincerely, DA Countryman EXHIBIT "G" TO LOAN AGREEMENT CITY REQUIREMENTS The Borrower agrees to comply with the following City requirements: 1. Termination for Improper Consideration City may, by written notice to the Borrower, immediately terminate the right of the Borrower to proceed under this Agreement if it is found that consideration, in any form, was offered or given by Borrower, either directly or through an intermediary, to any City officer, employee or agent with the intent of securing this Agreement or securing favorable treatment with respect to the award, amendment or extension of this Agreement or the making of any determinations with respect to the Borrower's performance pursuant to this Agreement. In the event of such termination, City shall be entitled to pursue the same remedies against the Borrower as it could pursue in the event of default by the Borrower. The Borrower shall immediately report any attempt by a City officer or employee to solicit such improper consideration. The report shall be made either to City's Executive Director or his designee. Among other items, such improper consideration may take the form of cash, discounts, service, the provision of travel or entertainment, or tangible gifts. 2. Confidentiality of Reports The Borrower shall keep confidential all reports, information and data received, prepared or assembled pursuant to performance hereunder. Such information shall not be made available to any person, firm, corporation or entity without the prior written consent of City. 3. Independent Contractor This Agreement does not, is not intended to, nor shall it be construed to create the relationship of agent, employee or joint venture between the City and the Borrower. 4. Compliance with Laws The Borrower agrees to be bound by applicable federal, state and local laws, regulations, and directives as they pertain to the performance of this Agreement. If the compensation under this Agreement is in excess of $100,000 then Borrower shall comply with applicable standards, orders, or requirements issued under section 306 of the Clean Air Act (42 U.S.C. 18579h), section 508 of the Clean Water Act (33 U.S.C. 1368), Executive Order 11738, and Environmental Protection Agency Regulations (40 CFR part 15). The Borrower must obtain and present all relevant state and local insurance, training and licensing pursuant to services required within this Agreement. Borrower shall comply with the following laws: 5. Civil Rights Act of 1964, Title VI (Non-discrimination in Federally Assisted Programs) Borrower shall comply with the Civil Rights Act of 1964 Title VI which provides that no person shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving federal financial assistance. 6. Section 109 of the Housing and Community Development Act of 1974 Borrower shall comply with Section 109 of the Housing and Community Development Act of 1974 which states that no person in the United States shall, on the grounds of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this title. 7. Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973 Borrower shall comply with the Age Discrimination Act of 1975 and section 504 of the Rehabilitation Act of 1973, which require that no person in the United States shall be excluded from participating in, denied the benefits of, or subject to discrimination under this Agreement on the basis of age or with respect to an otherwise qualified disabled individual. 8. Executive Order 11246 and 11375, Equal Opportunity in Employment (Non- discrimination in Employment by Government Contractors and Subcontractors) Borrower shall comply with Executive Order 11246 and 11375, Equal Opportunity in Employment which requires that during the performance of this Agreement, the Borrower will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, age, ancestry, marital status, or disability. The Borrower will take affirmative action to ensure that applicants are employed, and that employees are treated fairly during employment, without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Borrower agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officer setting forth the provisions of the non-discrimination clause. The Borrower will, in all solicitations or advertisements for employees placed by or on behalf of the Borrower, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex or national origin. The Borrower will send to each labor union or representative of workers with which he has a collective bargaining Agreement or other contract or understanding, a notice to be provided by the agency of the Borrower's commitments under Section 202 of Executive Order No. 11246 of September 24, 1965, and shall post copies of the notice in conspicuous places available to employees and applicants for employment. The Borrower will comply with all provisions of Executive Order No. 11246 of September 24, 1965, and of the rules, regulations and relevant orders of the Secretary of Labor. The Borrower will furnish all information and reports required by the Executive Order and by the rules, regulations and orders of the Secretary of Labor, or pursuant thereto, and will permit access to its books, records, and accounts by City and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders. In the event of Borrower's noncompliance with the non-discrimination clauses of this Agreement or with any of such rules, regulations or orders, this Agreement may be canceled, terminated or suspended in whole or in part and the Borrower may be declared ineligible for further Government contracts in accordance with procedures authorized in the Executive Orders and such other sanctions may be imposed and remedies invoked as provided in the Executive Order or by rule, regulation or order of the Secretary of Labor, or as otherwise provided by law. The Borrower will include the provisions of these paragraphs in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of the Executive Order No. 11246 of September 24, 1965, that such provisions will be binding upon each subcontractor or vendor. The Borrower will take such actions with respect to any subcontract or purchase order as City may direct as a means of enforcing such provisions including sanctions for noncompliance, provided however, that in the event the Borrower becomes involved in, or is threatened with litigation by a subcontractor or vendor as a result of such direction by City, the Borrower may request the United States to enter into such litigation to protect the interests of the United States. 9. Notice to Employees Regarding the Federal Earned Income Credit Borrower shall notify its employees, and shall require each subcontractor to notify its employees, that they may be eligible for the Federal Earned Income Credit under the federal income tax laws. Such notice shall be provided in accordance with the requirements set forth in Internal Revenue Service Notice 1015. 10. Borrower Responsibility and Debarment A. A responsible Borrower is a Borrower who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity and experience to satisfactorily perform the contract. It is the policy of the City to conduct business only with responsible Borrowers. B. The Borrower is hereby notified that if the City acquires information concerning the performance of the Borrower on this or other contracts which indicates that the Borrower is not responsible, the City may, in addition to other remedies provided in the contract, debar the Borrower from bidding on City contracts for a specified period of time not to exceed 3 years, and terminate any or all existing contracts the Borrower may have with the City. E. C. City may debar a Borrower if the City finds, in its discretion, that the Borrower has done any of the following: (1) violated any term of a contract with the City, (2) committed any act or omission which negatively reflects on the Borrower's quality, fitness or capacity to perform a contract with the City or any other public entity, or engaged in a pattem or practice which negatively reflects on same, (3) committed an act or offense which indicates a lack of business integrity or business honesty, or (4) made or submitted a false claim against the City or any other public entity. F. These terms shall also apply to subcontractors and subconsultants of City, or City contractors, consultants, vendors and agencies. 11. Section 3 of the Housing and Community Development Act of 1968, as Amended A. The work to be performed under this Agreement is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD -assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low -and very low-income persons, particularly persons who are recipients of HUD assistance for housing. B. The parties to this Agreement agree to comply with HUD's regulations in 24 CFR Part 135, which implement Section 3. As evidenced by their execution of this Agreement, the parties to this Agreement certify that they are under no contractual or other impediment that would prevent them from complying with the Part 135 regulations. C. The Borrower agrees to send to each labor organization or representative of workers with which the Borrower has a collective bargaining Agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the Borrower's commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. D. The Borrower agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR Part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR Part 135. The Borrower will not subcontract with any subcontractor where the Borrower has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR Part 135. E. The Borrower will certify that any vacant employment positions, including training positions, that are filled (1) after the Borrower is selected but before the Agreement is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent the Borrower's obligations under 24 CFR Part 135. F. Noncompliance with HUD's regulations in 24 CFR Part 135 may result in sanctions, termination of this Agreement for default, and debarment or suspension from future HUD assisted contracts. G. With respect to work performed in connection with Section 3 covered Indian housing assistance, section 7(b) of the Indian Self -Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this Agreement. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian -owned Economic Enterprises. Parties to this Agreement that are subject to the provisions of Section 3 and section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with section 7(b). 12. Barriers For the Disabled The Project shall be developed to comply with all applicable federal, state and local requirements for access for disabled persons. 13. Lead -Based Paint Borrower and its contractors and subcontractors shall not use lead -based paint in construction or maintenance of the Project. Borrower shall cause this provision to be incorporated in all contracts and subcontracts for work performed on the Site which involve the application of paint. 14. Lobbyist Ordinances Federal Lobbyist Requirements: Borrower is prohibited by the Department of Interior and Related Agencies Appropriations Act, known as the Byrd Amendments, and HUD's 24 CFR Part 87, from using federally appropriated funds for the purpose of influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, loan or cooperative Agreement, and any extension, continuation, renewal, amendment or modification of said documents. Borrower must certify in writing on the Federal Lobbyist Requirements Certification form that they are familiar with the Federal Lobbyist Requirements and that all persons and/or subcontractors acting on behalf of the Borrower will comply with the Lobbyist Requirements. Failure on the part of the Borrower or persons/subcontractors acting on behalf of the Borrower to fully comply with the Federal Lobbyist Requirements may be subject to civil penalties. 15. Borrower's Charitable Activities Compliance The Supervision of Trustees and Fundraisers For Charitable Purposes Act regulates entities receiving or raising charitable contributions. The "Nonprofit Integrity Act of 2004" (SB 1262, Chapter 919) increased Charitable Purposes Act requirements. By requiring Borrowers to complete the "Charitable Contributions Certificate" form included as Exhibit "J," the City seeks to ensure that all City borrowers that receive or raise charitable contributions comply with California law in order to protect the City and its taxpayers. A Borrower that received or raises charitable contributions without complying with its obligations under California law commits a material breach subjecting it to either contract termination or debarment proceedings, or both. SCHEDULE FIVE PROJECT COST ESTIMATE EXHIBIT H Casa Quinta Acq-Rehab Total MFA Loan Equity & Cost per Cost Per Budget Mortgagable Other Debt Unit S.F. Costs Acquisition Costs Land Acquisition 430,805 0 430,805 43,081 48.18 Building Acquisition 644,195.00 0 644,195 64,420 72.05 Other 0 0 0 0.00 Subtotal 1,075,000 0 1,075,000 107,500 120.23 Column Confirmation 1,075,000 Construction Costs Demolition 0.00 0 0 0 0.00 Accessory Structures 0.00 0 0 0 0.00 Site Construction 30,000.00 -530,000 560,000 3,000 3.36 Buildings and Structures 190,000.00 190.000 0 19,000 21.25 Other -Site Improvements 0.00 0 0 0 0.00 Site and Landscaping 0.00 0 0 0 0.00 Contractor Overhead 0.00 0 0 0 0.00 Contractor Profit (6% construction cost max) 30,800.00 30,800 0 3,080 3.44 General Requirements (6% construction cost max) 6,000.00 6,000 0 600 0.67 Construction Contingency 19,000.00 0 19,000 1,900 2.13 Subtotal 275,800 -303,200 579,000 27,580 30.85 Column Confirmation 275,800 Professional Services / Fees Architectural (Design) 0 0 0 0 0.00 Architectural (Supervision) 0 0 0 0 0.00 Attomey (Real Estate) 0 0 0 0 0.00 Engineer/ Survey 0 0 0 0 0.00 Other / Soils Material Testing 0 0 0 0 0.00 Other (Issuer Expenses) 0 0 0 0 0.00 Subtotal 0 0 0 0 0.00 Column Confirmation 0 Construction Financing Hazard Insurance 0 0 0 0 0.00 Liability Insurance 0 0 0 0 0.00 Performance bond 0 0 0 0 0.00 Interest 0-201,500 201,500 0 0.00 Origination / Discount Points 0-40,000 40,000 0 0.00 Credit Enhancement 0 0 0 0 0.00 Inspection Fees 0 0 0 0 0.00 Title and Recording 0 -5,000 5,000 0 0.00 Taxes 0-35,000 35,000 0 0.00 Other- Cost Certification 0 0 0 0 0.00 Subtotal 0-281,500 281,500 0 0.00 Column Confirmation 0 Permanent Financing Costs Bond Premium 0.00 0 0 0 0.00 Credit Report 0.00 0 0 0 0.00 Loan Application Fee 0.00 0 0 0 0.00 Loan Commitment Fee 6,700.00 6,700 0 670 0.75 Credit Enhancement 0.00 0 0 0 0.00 Title and Escrow 5,500.00 0 5,500 550 0.62 Legal 0.00 0 0 0 0.00 FNMA legal 0.00 0 0 0 0.00 Pre -Paid MIP Year 1 0.00 0 0 0 0.00 Initial Loan Payment 0.00 0 0 0 0.00 Direct Costs of Loan Est. 0.00 0 0 0 0.00 Insurance/RE Tax Escrow and Payments 3,000.00 3,000 0 300 0.34 Other Reserves and Escrows 0.00 0 0 0 0.00 Other Lender Fees 1,000.00 1,000 0 100 0.11 Subtotal 16,200 10,700 5,500 1,620 1.81 Column Confirmation 16,200 EXHIBIT "I" TO LOAN AGREEMENT HOME PROGRAM REQUIREMENTS (HOME — PROJECT NO. 09-02) SUMMARY OF FEDERAL PROGRAM REQUIREMENTS All developments which are assisted using HOME program funds must comply with all of the following federal laws, executive orders, and regulations pertaining to fair housing and equal opportunity, as set forth in 24 CFR part 5, subpart A. Title VI of the Civil Rights Act of 1964, As Amended (42 U.S.C. 2000d) -- States that no person may be excluded from participation in, denied the benefits of, or subjected to discrimination under any program or activity receiving federal financial assistance on the basis of race, color, or national origin. Its implementing regulations may be found in 28 CFR Part 1. Title VIII of the Civil Rights Act of 1968, As Amended "the Fair Housing Act" (42 U.S.C. 3601) -- Prohibits discrimination in the sale or rent of units in the private housing market against any person on the basis of race, color, religion, sex, national origin, familial status or handicap. Its implementing regulations may be found in 24 CFR Part 100-115. Equal Opportunity in Housing (Executive Order 11063, As Amended by Executive Order 12259) -- Prohibits discrimination in housing or residential property financing related to any federally assisted activity against individuals on the basis of race, color, religion, sex or national origin. Implementing regulations may be found in 24 CFR part 107. Architectural Barriers Act of 1968, As Amended (42 U.S.C. 4151) -- States that public (1.3., those intended to be accessible to the general public) buildings and conveyances financed with federal funds are designed, constructed, or altered to provide accessibility to the physically handicapped. Implementing regulations are found in 35 CFR Part 1190. Age Discrimination Act of 1975, As Amended (42 U.S.C. 6101) -- Prohibits age discrimination in programs receiving federal financial assistance. Its implementing regulations may be found in 24 CFR Part 146. Equal Employment Opportunity, Executive Order 11246, As Amended -- Prohibits discrimination against any employee or applicant for employment because of race, color, religion, sex, or national origin. Provisions to effectuate this prohibition must be included in all construction contracts exceeding $10,000. Implementing regulations may be found at 41 CFR Part 60. HOME PROGRAM TENANT MONITORING All HOME projects must comply with the tenant monitoring procedures established by the Commission in compliance with the HOME Program pursuant to 24 CFR Part 92 Sections 252 and 253. AFFIRMATIVE MARKETING Use of the Fair Housing logo, or equal opportunity language. A description of what the developer will do to affirmatively market housing assisted with HOME funds. A description of what developer will do to inform persons not likely to apply for housing without special outreach. Maintenance of records to document actions taken to affirmatively market HOME -assisted units and to assess marketing effectiveness. Description of how efforts will be assessed and what corrective actions will be taken where requirements are not met. WHAT SECTION 504 REQUIRES Remove Physical Barriers The usual standards for ensuring compliance with Section 504 are the Uniform Federal Accessibility Standards (UFAS), although deviations are permitted in specific circumstances. Provide Program Accessibility Individuals with handicaps must be able to find out about, apply for and participate in federally -assisted programs or activities. Special communication systems may be needed for outreach and ongoing communication (e.g. Telecommunications Device for the Deaf (TDD); materials on tape or in Braille; accessible locations for activities and meetings) Policies and procedures must be non-discriminatory (e.g., housing providers cannot ask people with handicap questions not asked of all applicants, screen individuals with handicaps differently or assess an individual's ability to live independently.) Make Employment Accessible Employers must not discriminate (e.g. cannot ask questions not asked to all applicants; cannot require physical examinations before making a job offer.) Employers must remove physical and administrative barriers to employment Employers must make reasonable accommodations for individuals with known handicaps (e.g., job restructuring; providing readers or sign interpreters; making facilities accessible.) Meet Administrative Requirements If recipient(s) or sub recipient(s) have 15 or more employees, they must: - - Designate a Section 504 Coordinator - - Notify program participants and employees of non- discrimination policies. All recipients and sub recipients must conduct self -evaluations of compliance with Section 504. COMMUNITY BUSINESS ENTERPRISE Executive Orders 11625, 12432, and 12138 (Community Business Enterprise) Developer must prescribe procedures acceptable to HUD for a minority outreach program to ensure the inclusion, to the maximum extent possible, of minorities and women and entities owned by minorities and women in all contracts. See 24 CFR 85.36(e) of which its appendices provide guidance from HUD on acceptable outreach practices. SITE AND NEIGHBORHOOD STANDARDS Housing provided through the HOME program must promote greater choice of housing opportunities. Specific rules are as follows: HOME -provided housing must be suitable from the standpoint of facilitating and furthering full compliance with the Title VI of the Civil Rights Act - 1964, the Fair Housing Act, and Executive Order 11063. EXHIBIT "J" TO THE LOAN AGREEMENT CHARITABLE CONTRIBUTIONS CERTIFICATION Casa Familiar, Inc. Company Name 119 W. Hall St., San Ysidro, CA 92173 Address 23-7237898 Internal Revenue Service Employer Identification Number California Registry of Charitable Trusts "CT" number (if applicable) The Nonprofit Integrity Act (SB 1262, Chapter 919) added requirements to California's Supervision of Trustees and Fundraisers for Charitable Purposes Act, which regulates those receiving and raising charitable contributions. CERTIFICATION Proposer or Contractor has examined its activities and determined that it does not now receive or raise charitable contributions regulated under Califomia's Supervision of Trustees and Fundraisers for Charitable Purposes Act. If Proposer engages in activities subjecting it to those laws during the term of a City of National City and/or National City Community Development Commission (City/CDC) contract, it will timely comply with them and provide the City/CDC a copy of its initial registration with the California State Attorney General's Registry of Charitable Trusts when filed. OR Proposer of Contractor is registered with the California Registry of Charitable Trusts under the CT number listed above and is in compliance with its registration and reporting requirements under California law. Attached is a copy of its most recent filing with the Registry of Charitable Trusts as required by Title 11 California Code of Regulations, sections 300- 301 and Government Code sections 12585-12586. YES NO ( ) (X) YES NO Signature Date Andrea Skorepa, President & CEO Name and Title (please type or print) Exhibit J Charitable Contribution Certificate EXHIBIT "K" TO LOAN AGREEMENT ENVIRONMENTAL SPECIAL CONDITIONS (HOME — PROJECT NO. 009-02) The following special conditions/environmental mitigation measures must be included in the project contract and later implemented as part of the project scope to alleviate adverse environmental impacts. The environmental clearance is conditioned upon the implementation of all special conditions/mitigation measures: 1. ... anything from phase I. 2. Based upon the pre-1979 age of the building, it is likely that some of the building materials contain lead -based paint. If painted surfaces are disturbed during rehabilitation, surveys shall be undertaken to determine the presence of lead -based paint (LBH). If LBP is identified during the surveys, removal, disposal, and/or handling of the materials shall be conducted in accordance with applicable regulations. EXHIBIT "L" TO LOAN AGREEMENT CONSTRUCTION REQUIREMENTS The Borrower's receipt of the Loan proceeds for purposes of paying construction and permanent costs in connection with the Project is conditioned upon the Borrower's adherence to certain construction requirements imposed by the City in connection with the Project, including, without limitation, the requirements set forth in this EXHIBIT "L". Submittals and Review Procedure; Construction Monitoring (a) The Borrower's submittal requirements shall include the following: (i) The Borrower shall submit to the City a Project team -staffing plan ("Staffing Plan") for review and approval by the City. The Staffing Plan shall contain an organizational chart showing all component functions and reporting relationships. (ii) The Borrower shall submit to the City a detailed development schedule ("Development Schedule") for review and approval by the City. (ii) The Borrower shall submit to the City a construction schedule ("Construction Schedule") for review and approval by the City. (iii) The Borrower shall submit to the City basic concept drawings ("Basic Concept Drawings") for review and approval by the City. (iv) The Borrower and its design team shall submit to the City design development plans and related documents ("Design Development Plans") for the following phases of design: a) schematic design; c) design development; c) construction cost estimates for schematic design and design development. (v) The final working drawings 100% construction documents (the "Final Drawings") submittal shall contain a package adequate to obtain building permits and build the Project. Where only maintenance is to be performed, a description, including specifications where applicable, and budget for said maintenance will be provided. (b) The Borrower shall submit to the City in accordance with the Development Schedule a construction contract ("Construction Contract"). The Construction Contract will be in a "Direct Cost plus Fee" format. Establishing line item costs are a dynamic process in a remodel and rehab project. Initial cost estimates will Construction Requirements Exhibit "L" 1 be based on subcontractor and material supplier bids which will be submitted to the City as back up for the cost estimates. (c) The City will provide construction monitoring oversight of the Project. The Borrower shall maintain at the job site adequate records and shall permit site access to the City at all reasonable times to accommodate the monitoring activities. The monitoring program may include, but is not limited to, the following: establishment of various reporting requirement formats and frequencies; review of scheduling documents for conformance and performance; review of OP/QC program results; review of Project budgets and cash flows; attendance at job site meetings; review of job correspondence; site inspections; pay request reviews and approvals; 2. Loan Disbursement and Requisitions. Requests to the City for construction progress payments ("Progress Payments") by the Borrower and Borrower's Contractor under the terms of this Agreement are to be made on the basis of percentage of work completed to the date of each such request. Dixieline Fund control will be contracted to distribute funds, obtain invoices, and require execution of appropriate lien releases from all contractors and material suppliers pursuant to California mechanics lien law. Requests will be made per Dixieline's adopted fund control format. Once the Contractor's Progress Payment request is approved by the Borrower, a copy of the request will be submitted the City for review and approval. If a site visit is required by the City, the Commission agrees to perform the Site Visit within two working days of receipt of the request. The City shall have up to four business days to approve and seven business days to fund each request from the original date of the request. Time is of the essence in the processing of requests. 3. Insurance (a) The purpose of this Section is to establish insurance requirements. (b) The Borrower shall require in the Construction Contract that the contractor ("Contractor") shall procure and maintain at Contractor's expense (and require all subcontractors and sub -subcontractors to procure and maintain at their expense) for the duration of the Construction Contract the following insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work by Contractor, its agents, representatives, employees, subcontractors or sub -sub contractors, and that the Contractor and all subcontractors and sub -subcontractors shall otherwise meet the insurance requirements set forth below: (i) Comprehensive General Liability: $500,000 combined single limit for each occurrence ($1,000,000 General Aggregate) for bodily injury, Construction Requirements Exhibit "L" 2 personal injury and property damage, and products and completed operations coverage for all subcontractors. (ii) Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage covering owned, non -owned and hired vehicles. (iii) Workers Compensation as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. (iv) Contractor shall furnish the City upon request, certificates of insurance maintained by it (and all subcontractors and sub -subcontractors) with original endorsements affecting coverage as required above. 4. Construction Budget Changes. The line item construction budget may be subject to change from time to time based on possible change orders and/or changes in the scope of work. Provided there is adequate contingency remaining in the construction budget to cover such change, the Borrower may approve any changes in the line item construction budget up to the greater of $2,500 or 10% of the original line item amount without the approval of the City. The City shall have the right to approve any changes above the aforementioned limits. The Borrower agrees to provide the City with an updated construction budget within 10 days of any such change. Construction Requirements Exhibit "L" 3 EXHIBIT "M" TO LOAN AGREEMENT SCHEDULE OF PERFORMANCE Execution and Delivery of Agreement by Borrower. The Borrower shall execute and deliver this Agreement to the City. 2. Execution of Agreement by City. The City Council shall authorize execution of this Agreement. City will deliver a copy of the executed Agreement to the Borrower. 3. Acquisition of the Property 4. Submission of Final Construction Plans, Drawings, Landscaping Plans, and Contract. The Borrower shall prepare and submit to the City for review and approval Final Construction Plans, Drawings, Final Landscaping Plans, and a Construction Contract for the Site's rehabilitation. 5. Submission of Construction Loan Commitment. The Borrower shall deliver to the City an irrevocable written commitment from a Qualified Financial Institution agreeing to make a construction loan in an amount sufficient to fund the rehabilitation of the improvements together with Developer equity and other sources of financing. 6. Approval of Construction Financing. The City shall approve or disapprove of the Borrower's Construction Financing Commitment. 7. Approval — Final Construction Plans, Drawings, Landscaping Plans, and Contract. The City shall approve or disapprove the Borrower's Final Construction Plans, Drawings, Landscaping Plans, and Construction Contract for the Site. 8. Development Schedule. Borrower shall submit a detailed rehabilitation schedule for review & approval by the City 9. Submission of Certificates of Insurance. The Borrower shall furnish to the City appropriate certificates of insurance policies. 10. Governmental Permits. The Borrower shall obtain any and all permits required by the County or any other governmental Not later than 5 days after receipt of this Agreement by Borrower for execution. Following approval by the City Council No later than 60 days after approval by City Council. No later than 75 days following the acquisition date of the Property. N/A as city is Construction Lender. N/A as city is Construction Lender. Within 21 days after receipt thereof by the City. Prior to the date set forth herein for the commencement of the Improvements Prior to the date set forth herein for the commencement of the Improvements. Prior to the date set forth herein for the commencement of the Improvements. agency 11. Commencement of Construction of Improvements. The Borrower shall commence construction of the Improvements. 12. Submission of Marketing Plan for Leasing of Units. The Borrower shall deliver to the City a Marketing Plan for the leasing of the fifty-two Assisted Units as specified in this Agreement. 13. Identification of Qualified Tenants. Borrower shall identify at least 17 qualified tenant households for the Assisted Units. 14. Permanent Lender Commitment. The Borrower shall provide the City with written commitment(s) by Permanent Lender. 15. Completion of Construction of Improvements. Borrower shall complete construction of the Improvements. 16. Issuance of Certificate of Completion. The City shall furnish the Borrower with a Certificate of Completion. 17. Complete Lease -up of Apartments Borrower shall lease all of the Assisted Units to Qualified Tenants. 18. Seller Construction Loan Rolls into Permanent Loan Commencement of construction shall not be later than 120 days after acquisition of the property. Within 180 days after commencement of the improvements thereof by the Borrower. At least 15 days before completion of improvements. At least 15 days prior to closing. Within 360 days after commencement thereof by the Borrower. If needed, promptly after completion of all construction required to be completed by the Borrower on the Site and upon written request therefore by the Borrower. Within 60 days after completion of improvements. Beginning on the first of the month following 360 days after commencement thereof by the Borrower. EXHIBIT "N" TO LOAN AGREEMENT SUPPORTIVE SERVICES PLAN (HOME — PROJECT NO. 009-02) Borrower shall work closely with the City of National City to provide services for the project residents. Borrower intends to include a line item in the operating budget for case management and referral for Project residents. The actual direct services to be provided will depend on the needs identified by the case manager after interviewing residents. EXHIBIT "0" TO LOAN AGREEMENT AGREEMENT REGARDING PAYMENT FOR SERVICES THIS AGREEMENT AND DECLARATION ("Agreement"), made this 1st day of September 2009, by, between and among Casa Familiar, Inc., a California Non-profit Corporation ("Owner") and the City of National City, California ("City") WHEREAS, Owner is the owner of that certain parcel of real property legally described in Exhibit A attached hereto (the "Subject Property"); and WHEREAS, City has agreed to make a loan of $835,000.00 in HOME Investment Partnership Program Funds to Owner at a below -market interest rate with principal and interest due according to the various loan documents (the "HOME Loan"); and WHEREAS, Owner, pursuant to California law, is entitled, subject to certain qualifying criteria, and intends to claim a welfare property tax exemption which will exempt Owner from paying real estate taxes on the Subject Property and any related improvements thereon; and WHEREAS, Owner agrees to offset the City for the City's loss of revenue from its general fund which would result from the above described property tax exemption. NOW, THEREFORE, Owner and City declare and agree that the Subject Property will pay a fee for services as herein described for the Subject Property subject to the following: 1. City will close and fully fund the HOME Loan. 2_ Beginning with the first year after completion of the construction on the Subject Property, in each year in which the Owner or the Subject Property qualify for and receive a welfare property tax exemption, Owner shall pay to City a payment for services in the amount of $2,500. Said fee shall increase at a rate of 2% per year. Said payment shall be subject to the Subject Property producing positive residual cash flow after all approved expenses are paid, as defined in the HOME Loan Agreement between the Owner and City, except that said payment shall be made before any deferred developer fee payments are made under said HOME Loan Agreement. No payment for services shall be made by the Owner under this agreement for any year in which a property tax exemption is not secured for the Subject Property. The Owner shall not be exempt from any special assessments which may be due for the Subject Property. 3. Said payment shall be due annually at the same time as residual receipt payments are due and payable under the HOME Loan Agreement. In the event that said payment date falls on the weekend or national holiday, payments required hereunder shall be due the next business day. 4. The obligations of the Owner of the Subject Property to make the payment for services is secured by a lien against the Subject Property and the lien may be foreclosed upon by City in the event of delinquency. 5. In addition to the principal amount set forth in Section 2 above, the City is authorized and entitled to penalties equaling five percent (5%) of any outstanding delinquent amount, and additional interest of three -fourths of one percent (.75%) per month which commences from the date immediately following the principal payment due date until the date that all principal, penalties and interest are paid in full. Additionally, Owner shall be responsible for any administrative costs, fees or other charges, including reasonable attorney's fee and costs, as well as all other charges pertaining to the enforcement of the provisions of this Agreement. 6. The covenants contained in this Agreement are to run with the land and will be binding on the parties, their assigns and successors in interest and all persons claiming an interest in the Subject Property until such time as the Subject Property is no longer eligible for a welfare exemption or similar exemption from the payment of real property taxes. 7. Enforcement will be proceedings at law or in equity against any person or persons violating or attempting to violate any covenant either to restrain violation or to recover damages. IN WITNESS WHEREOF, Owner and City execute this Agreement on the date first written above. Casa Familiar, Inc. City of National City A California Non-profit Corporation By: By: Andrea Skorepa, Casa Familiar, Inc. Ron Morrison Its President & CEO Is Mayor City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT MEETING DATE August 18, 2009 AGENDA ITEM NO. 28 ITEM TITLE A report: US Environmental Protection Agency ("EPA") Brownfield assessment grant for the Westside Specific Planning area. PREPARED BY �X Patricia Beard (ext 4255) Redevelopment Manager DEPARTMENT Redevelopment Division EXPLANATION On August 1, 2007, the Community Development Commission ("CDC") commenced a federally funded environmental investigation of potential "brownfield" conditions in the Westside Specific Planning Area. The project was intended to result in an areawide inventory of conditions, 10 —15 Phase I environmental investigations, up to five (5) Phase II environmental investigations, public outreach and redevelopment planning over a three year period. This report is intended as an update. The grant project is on schedule and within budget. Please see the attached Background Report for a detailed update. The grant period will end on October 31, 2010. J Environmental Review Not applicable 460-ar--2- Financial Statement The full grant amount is $200,000, of which $107,730.51 had been spent as of July 1, 2009. Account No. 900845 r STAFF RECOMMENDATION Accept and file. BOARD / COMMISSION RECOMMENDATION Not applicable. STRATEGIC GOAL 1 E. Partner with regional agencies; 2B. Aggressively seek funding; 7E. Foster healthy neighborhoods. ATTACHMENTS 1. Background Report Resolution No. ATTACHMENT 1 BACKGROUND REPORT On August 1, 2007, the Redevelopment Division commenced a USEPA grant project to study sites potentially contaminated by hazardous soils in the area of the Westside Specific Plan ("WSP"). The investigation is part of an overall implementation strategy being prepared by staff related to the WSP. As required under an approved Work Plan for the grant project, E-2 Manage Tech, CDC's lead consultant for the grant project, completed an inventory of all of the non-residential and public properties within the WSP boundary. The inventory was compiled by visual observations and a review of 69 federal, state and local environmental databases to determine whether hazardous materials permits have been issued on sites and, if so, whether any violations of these permits have occurred. A total of 159 businesses were inventoried and 413 entries in environmental databases were reviewed. Area residents have expressed a high level of concern about auto -related businesses and businesses with hazardous air emissions in the WSP area. The inventory found that there are 55 auto -related businesses which appear to use or store hazardous materials and 13 auto -related businesses which have known releases of hazardous materials and/or permit violations. Following the EPA -approved Work Plan, after completion of the inventory, priority sites were identified for further investigation. The CDC studied 13 sites by completing Phase I technical reports (in depth review of public records) throughout the neighborhood and increasingly focused grant efforts on the proposed site of a Transit Oriented Affordable Housing Development ("TOD") near Kimball Elementary School on the east and west sides of Paradise Creek. Based on findings in these Phase I studies, five sites within the TOD footprint were targeted for Phase II environmental investigations. Phase II studies include actual soils testing to find current chemicals of concern. The Phase II investigations, which are not yet complete, found the soils within the TOD east of the Creek are primarily contaminated by benzene from previously removed underground petroleum storage tanks and hydraulic fluid. The groundwater has not been affected by these substances. Both of these chemicals can be successfully remediated and pose no threat to developing a housing project on the site. Preliminary estimates indicate that a remediation project on the east side of the Creek may be conducted for less than $200,000 and take 18 — 24 months to complete. The east side of the Creek was studied through a separate grant awarded by Cal -EPA Department of Toxic Substances Control. This study found that the soils on the eastern side of the Creek are primarily impacted by metals and can also be successfully remediated. Staff is waiting for more detailed development plans to prepare a remediation plan for this site. The findings on the west side of the Creek require additional study prior to creating a remediation plan to submit to regulators for approval. The scope of additional work proposed is currently being reviewed by City staff and EPA for approval. While investigations proceed, staff has commenced seeking funding sources to assist the City/CDC with remediation of the sites. Outside funding, if it can be obtained, will be valuable in trying to complete financing for the TOD. Note: The Phase I study reports and Cal -EPA investigation of the east side of the Creek are complete and available for public review. The Phase II study for the east side of the Creek is not yet complete, but will become available for public review once finalized, later this year. City of National City, California COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT IEETING DATE August 18, 2009 AGENDA ITEM NO. 29 rITEM TITLE REAL PROPERTY TRANSACTION FOR FORMER DAYS INN SITE; 1.07 — ACRE PARCEL LOCATED AT 1640 EAST PLAZA BOULEVARD (A.P.N. 557-410-200) PREPARED BY George H. Eiser, III'°' DEPARTMENT City Attorney (Ext. 4221) EXPLANATION The purpose of this report is to update the CDC Board regarding staffs effort in negotiating the sale, including the price and terms of the payment, of the former Days Inn property, a 1.07 — acre parcel located at 1640 East Plaza Boulevard, currently owned by the CDC. Executive Director Brad Raulston is the negotiator for the CDC, and the other negotiating party is The Mar Group. This is a companion item to the closed session item on the agenda. Environmental Review NI N/A Financial Statement N/A STAFF RECOMMENDATION Accept and file. BOARD / COMMISSION RECOMMENDATION N/A Approved By: Finance Director Account No. ATTACHMENTS ( Listed Below) Resolution No. N/A L A-200 (9/99) City of National City, California COUNCIL AGENDA STATEMENT __IEETING DATE August 18, 2009 AGENDA ITEM NO. 30 ITEM TITLE HOUSING ACTIVITY UPDATE PREPARED BY DEPARTMENT Alfredo Ybarra (Ext. 4279r* Community Development, Housing and Grant Division EXPLANATION This presentation will provide an opportunity for the City Council to receive current housing activity information including projects completed, under construction, contracted, and conceptual developments. Staff will also present information on our current and developing housing programs. Environmental Review �_ N/A Financial Statement There is no fiscal impact associated with this request. Approved By: Account No. inance Director STAFF RECOMMENDATION Consider and file report. BOARD 1 COMMISSION RECOMMENDATION ATTACHMENTS ( Listed Below) Resolution No. L A-200 (9/99) • PROJECT/TARGET GROUP UNITS CURRENT STATUS/COMMENTS SPONSOR, PROJECT NAME & ADDRESS TARGET POP. GROUP TYPE OF UNIT TOTAL AFFORD UNITS TOTAL MARKET TOTAL UNITS INCOME ELIGIBILITY OR SET -ASIDE RESTRICTIONS Plaza City Apartments, Willow Partners, 1535 E. Plaza Senior Senior Rental 80 0 80 64-lbdrms, 4(a?30, 12n45, 40'j50, 8(a160 & 16-2bdrm, 4@a 30, 12 th60 Built and Occupied Mariposa, Olson Company, 1300 Plaza Family Condo, Sale 0 21 21 NA Built and Occupied Jay Cleveland, 426-514 T Ave Family Single Family, Sale 0 8 8 NA Built and Occupied Coast Contracting, 950 L Avenue Family Condo, Sale 0 17 17 NA Built and Occupied Angie Bareno, 1062-1622 Rachael Ave., 3102-3106 l6th St. Family Condo, Sale 0 8 8 NA Built and Occupied Concordia Commtmities, LLC, Euclid/Division St. Family Condo, Sale 0 37 37 NA Built and Occupied Jay Cleveland, 1933-1945 Palm Avenue Family Single Family, Sale 0 5 5 NA Built and Occupied Cypress Glen LLC, Cypress Glen Family Single Family, Sale 0 45 45 NA Construction complete 07/14/09. Sub Total 80 141 221 PROJECT/TARGET GROUP as_,„ _�.Fi ,_m i,....,..� UNITS CURRENT STATUS/COMMENTS Under Construction SPONSOR, PROJECT NAME & ADDRESS TARGET POI'. GROUP TYPE OF UNIT TOTAL AFFORD UNITS TOTAL MARKET TOTAL UNITS INCOME ELIGIBILITY OR SET -ASIDE RESTRICTIONS Habitat for Humanity, 1441 Harding, Family Single Family. Sale 3 0 (1 2-3hdrm and 1-4bdrm/60% Casa Familiar, 1101-1119 E Ave, 1111 D Ave Renter Family, Rental 17 0 17 3-1bdrmCaa50; 7-Ibdrm A60:2- 2bdrm(a160%; 5-2bdrmk60% Under Construction Pacific View Estates, 1300 Fig Court Family Single Family, Sale 5 44 49 4bdrm/80% Twenty units completed and 29 units under construction Harbor View, Gulf Unlimited Corp., 8th & 1) Avenue Family Condo, Sale 0 75 75 NA No final occup.permit, foreclosed & resold. Generations Construction, 2700 Fast 4th Senior Senior Assisted Living 0 497 497 NA Final for 3rd building requested for 8/09 Constellation Property (Centro), 45 East l2th Family Condo, Sale (1 61 61 NA Near complete. Owner to submit zone change to allow limited stay hotel. Paradise Walk, Olson Company, 2927 E. 8th Street Family Condo, Sale 0 96 96 NA 36 of 96 proposed units completed. Construction stalled. Allen Eads, Rachel Canyon Family Single Family, Sale 0 11 11 NA 10 of 11 units complete. Construction stalled. Sub Total 22 784 806 • PROJECT/TARGET GROUP UNITS CURRENT STATUS/COMMENTS SPONSOR, PROJECT NAME & ADDRESS TARGET POP. GROUP TYPE OF UNIT TOTAL AFFORD UNITS TOTAL MARKET TOTAL UNITS INCOME ELIGIBILITY OR SET -ASIDE RESTRICTIONS Constellation Property, 1105-1123 National City Blvd. Family Rental 36 168 204 36(a)50% Bond Issue resolution for CSCDA Habitat for Humanity 1820 G Avenue Family Sale 8 0 8 8-3 bdrm/60% Disposition and Development Agmt. in place Joseph Bendah, 3000 E. 8th St, Family Condo, Sale 0 22 22 NA Buildings plans in process Pacifica Company, Sheryl Lane Family Sale 0 24 24 NA Map expires 9/22/2010 Bay Canyon Development, 101 E. 30th St. Family Condo. Sale 0 47 47 NA Map expires 08/03/2010 Alpha Project, 817-829 C Ave. Family Condo. Sale 0 8 8 NA Map expires 09/21/2009 Iighland Partners, 2100 - 2140 Highland Ave. Family Condo, Sale 0 32 32 NA Map expired 01/19/2009 William Cheng, 2504 Highland Ave Family Single Family, Sale 0 10 10 NA Map expired 0/18/2008 Park Lofts, Willmark Communities, 1509 National City Blvd. Family Condo, Sale 0 306 306 NA Map expires 12/21/09 Arnold Schmidt, National City Blvd. Family Condo, Sale 0 352 352 NA Application Submitted, Not approved Bitterlin Development, Kimball and 12th St Family Condo, Sale 0 17 17 PD expired Paradise Creek Family Rental - - TBD TBD Planning Stage: Units TBD Sub Total 44 986 1030 PROJECT/TARGET GROUP UNITS CURRENT STATUS/COMMENTS SPONSOR, PROJECT NAME & ADDRESS TARGET POP. GROUP TYPE OF UNIT TOTAL AFFORD UNITS TOTAL MARKET TOTAL UNITS INCOME ELIGIBILITY OR SET -ASIDE RESTRICTIONS Kimball -Morgan Towers Senior Village Senior Rental - - TBD TBD Concept Stage Riverview Gateway, Sweetwater Road TBD TBD TBD TBD Concept Stage Purple Cow Site, Highland Avenue TBD TBD - - TBD TBD Vacant Land 1028 A Avenue Family Sale - - TBD TAD Vacant land 405-419 West 18th TBD TBD - - TBD TBD Vacant Land 1231 McKinley TAD TBD - - TBD TBD Vacant Land Sub Total 0 0 0 Total Units (Projects) 146 1911 2057 PROJECT/TARGET GROUP UNITS CURRENT STATUS/COMMENTS HOUSING ACTIVITY TARGET POP. GROUP TYPE OF UNIT FAMILIES ASSISTED INCOME ELIGIBILITY OR SET -ASIDE RESTRICTIONS Section 8 Rental Assistance All Rental 1,044 <50% AMI On going Affordable Housing Inventory Renters Rental 1.874 Varies per Deed Restriction Rental complexes restricted by recorded instrument Healthy Homes Grant Renters Rental 175 <80% AMI 4-year grant ending Oct 31, 2009; 175 units projected First Time Homebuyer Homebuyers Sale 5 <80% AMI Pacific View Estates Housing Rehabilitation (Christmas in July) Owner Occupants Single Family 55 <80% AMI Program under development Homeless Prevention & Rapid Re -Housing Homeless Rental 25 <30%AMI Program under development Rental Housing Inspection Program Rental Owners Rental 1,800 NA Estimated number of units inspected since 2007 Weatherization Program (MAAC) Older homes 240 <80%AMI MAAC estitnates 5-10 units per month Lead Hazard Control Program Grant Children <6 Units built prior to 1978 1 10 <80% AMI Grant and program ended March 31, 2008 Sub Total 5,328 Item 131 08/18/09 CLOSED SESSION REPORT (City Attorney)