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HomeMy WebLinkAbout2011 01-25 CC CDC ADJ AGENDA PKTAgenda Of The Adjourned 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 — January 25, 2011 — 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 made available in appropriate alternative formats to persons with a disability in compliance with the Americans with Disabilities Act. Please contact the City Clerk's Office at (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 interpretacion en espanol se proporciona durante sesiones del Consejo Municipal. Los audiofonos estan disponibles en el pasillo al principio de la junta. Council Requests That All Cell 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.gov CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 1/25/2011- Page 2 PRESENTATIONS 1. Presentations — Community Emergency Response Team Academy Members (Fire) 2. Interviews and Appointments: Various Boards & Commissions. (City Clerk) 3. Anniversary Recognition — Recognizing Brenda E. Hodges, Community Services Director for her 20 years of service. (City Council) 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 Regular City Council/Community Development Commission Meeting of December 7, 2010. (City Clerk) 5. Approval of a motion to waive reading of the text of the Ordinances considered at this meeting and provides that such Ordinances shall be introduced and/or adopted after a reading of the title only. (City Clerk) 6. WARRANT REGISTER #23 Warrant Register #23 for the period of 12/01/10 through 12/07/10 in the amount of $1,133,405.38. (Finance) 7. WARRANT REGISTER #24 Warrant Register #24 for the period of 12/08/10 through 12/14/10 in the amount of $2,582,624.61. (Finance) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 1/25/2011- Page 3 PUBLIC HEARINGS 8. Public Hearing - Modification of a previously approved Tentative Subdivision Map to delete a Condition of Approval requiring utilities to be placed underground at 1205-1343 Fig Court. (Applicant: Robert Gulota) (Case File 2010-36 M (S-2006-12) (Development Services/Planning) Public Hearing — Downtown Specific Plan Amendment and Mitigated Negative Declaration. (Case File No. 2010-23 SPA IS) (Applicant: Library Village South, Inc. (Community Development) **Companion Item #11** ORDINANCE FOR ADOPTION 10. An Ordinance of the City Council of the City of National City establishing the compensation of the Mayor and City Council. (City Attorney) NON CONSENT RESOLUTIONS 11. Resolution of the City Council of the City of National City adopting the Mitigated Negative Declaration and approving the Downtown Specific Plan Amendment. (Case File No. 2010-23 SPA IS) (Applicant: Library Village South, Inc.) (Community Development) **Companion Item #9** 12. Resolution of the City Council of the City of National City in recognition of concessions made by Executive and Management employee groups in the form of a full eight percent employee paid contribution to retirement, a two tiered retirement formula and a vacation accrual cap of three times the accrual rate, a resolution authorizing a one-time performance and retention incentive payment of three percent to eligible employees in the Executive and Management groups (excepting the City Attorney) in lieu of increases in base salary, and approving a transfer of $75,063 from the General Fund Contingency Reserve to the Personnel Compensation Fund for said payment. (City Manager) NEW BUSINESS 13. City of National City Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2010. (Finance) 14. City of National City's Single Audit Report on Federal Awards for the Fiscal Year Ended June 30, 2010. (Finance) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 1/25/2011- Page 4 NEW BUSINESS (Cont.) 15. Request from American Cancer Society to use the MLK South for their monthly "Relay for Life" planning meeting on the 2nd Tuesday of each month from February -August 2011, from 6 pm — 7:30 pm. Applicant is requesting a fee waiver. (Community Services) 16. Temporary Use Permit — Pacifica Bayview Banner LLC requesting an extension to continue their banner advertising "Condos from $125,000 (619) 336-0303" at the Bayview Tower building at 801 National City Boulevard from January 26 through December 31, 2011 with no waiver of fees. (Neighborhood Services Division) 17. Temporary Use Permit — Circus Vargas sponsored by Tabares Entertainment from February 24 through 28, 2011 at the Plaza Bonita Mall with no waiver of fees. (Neighborhood Services Division) 18. Notice of Decision — Planning Commission approval of a Zone Variance to allow parking spaces and Tight poles in the front yard setback at an existing church at 125 Palm Avenue. (Applicant Misael Zaragoza) (Case File 2010-35 Z CUP) (Development Services/Planning) COMMUNITY DEVELOPMENT COMMISSION CONSENT CALENDAR 19. Authorize the reimbursement of Community Development Commission expenditures in the amount of $858,469.54 to the City of National City for the period of 12/01/10 through 12/07/10. (Finance) 20. Authorize the reimbursement of Community Development Commission expenditures in the amount of $192,124.07 to the City of National City for the period of 12/08/10 through 12/14/10. (Finance) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 1/25/2011- Page 5 NON CONSENT RESOLUTION 21. Resolution of the Community Development Commission of the City of National City in recognition of concessions made by Executive and Management employee groups in the form of a full eight percent employee paid contribution to retirement, a two tiered retirement formula and a vacation accrual cap of three times the accrual rate, a resolution authorizing a one-time performance and retention incentive payment of three percent to eligible employees in the Executive and Management groups (excepting the City Attorney) in lieu of increases in base salary, and approving a transfer of $18,923 from the Tax Increment Fund to the Personnel Compensation Fund for said payment. (City Manager) NEW BUSINESS 22. Community Development Commission of the City of National City's Financial Statements and Supplemental Information for the Fiscal Year Ended June 30, 2010. (Finance) STAFF REPORTS 23. Closed Session Report. (City Attorney) MAYOR AND CITY COUNCIL 24. Request to schedule a City Council Retreat. (Councilmember initiated) ADJOURNMENT Regular City Council and Community Development Commission Meeting — Tuesday — February 1, 2011 — 6:00 p.m. - Council Chambers — National City, California. Adjourned Regular Meeting — National City City Council and Community Development Commission Budget Workshop — Saturday, February 5, 2011 — 9:00 a.m. — Council Chambers — National City ITEM #1 1/25/11 PRESENTATIONS - COMMUNITY EMERGENCY RESPONSE TEAM ACADEMY MEMBERS (FIRE) CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 25, 2011 AGENDA ITEM NO. 2 ...FM TITLE: Interviews and Appointments: Various Boards & Commissions PREPARED BY: Michael R. Dalla DEPARTMENT: City Clerk PHONE: 619-336-4226 APPROVED BY: EXPLANATION: Several vacancies and expired terms exist on various Boards, Commissions and outside agencies. The vacancies and expired terms have been advertised and posted. Incumbent appointees have been contacted to determine their desire for re -appointment. At the January 11, 2011 meeting, the City Council conducted interviews for applicants and currently serving board members requesting re -appointment. Applicants unable to be present at the last meeting, incumbent board members and any new applicants have been asked to be present and available for interview. FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance STAFF RECOMMENDATION: Conduct interviews. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: _Jmmary Report: Boards, Commissions and Outside Agencies SUMMARY REPORT: BOARDS, COMMISSIONS & OUTSIDE AGENCIES ART COMMITTEE Appointing Authority Members: Length of Term: Terms Expire: Meetings are held: Staffing Provided by: Mayor with approval of City Council 5 (non-residents may apply) 3 years September 30th Quarterly Community Services Current Status: In 2009 the City Council approved reducing the Art Committee from seven (7) members to five (5). The reduction was to be effective in June of 2010. The terms of all seven (7) current members have expired. Current Members Frank Bueno Manuel Cavada Christina Chacon Paul Ecdao Janice Martinelli Bennett Peji William Virchis New Applicants Carolyn StClair Crystal Mercado Christopher Coyole William G. Ramsey Request Re -appointment Yes No Response Yes Yes No No Response Yes Interviewed Yes No No No Yes No Yes Yes COMMUNITY AND POLICE RELATIONS COMMISSION (CPRC) Appointing Authority Members: Length of Term: Terms expire: Meets: Staffing Provided by: Mayor with approval of City Council 8 (7 voting / 5 residents and 2 non-residents) 3 years March 31st 4 times per year Community Services Current Status: There are three (3) vacancies on the CPRC. All three are `Resident Voting Members'. There are two (2) terms due to expire on March 31st Both are `non-resident' voting members. Current Members Louise Branch Nancy Estolano Applicants James Brewer Leslie Coyote Pearl Quinones Ditas Yamane Request Re -appointment Yes Yes LIBRARY BOARD OF TRUSTEES Appointing Authority Members: Length of Term: Terms Expire: Meets: Staffing Provided by: Mayor with approval of City Council 5 (residents only) 3 years September 30th Monthly Library Staff Interviewed No No Interviewed Yes Yes Yes No Current Status: There is one (1) expired term on the Library Board. Current Members Brian Clapper New Applicants William G. Ramsey Ditas Yamane Request Re -appointment Yes Interviewed Yes Yes No PARKS, RECREATION AND SENIOR CITIZENS ADVISORY BOARD Appointing Authority Members: Length of Term: Terms Expire: Meets: Staffing Provided by: Mayor with approval of City Council ?? To be Determined (residents only) 3 years September 30th Monthly Community Services Current Status: In 2009 the City Council merged the Park & Recreation Advisory Board (PRAB) and the Senior Citizens Advisory Board. At the time, however, no determination was made establishing the number of members that constitute the new merged board. Currently the former PRAB has one (1) vacancy and two (2) expired terms and the former Senior Citizens Advisory Board has one (1) vacancy. Should it be the desire of the City Council to reduce the size of the merged board then no action should be taken to fill the two vacancies. Current Members Roy Cesena Anthony Garcia New Applicants James Brewer Ditas Yamane Request Re -appointment Yes Yes Interviewed No No Interviewed Yes No PLANNING COMMISSION Appointing Authority Members: Length of Term: Terms Expire: Meets: Staffing Provided by: City Council 7 Planning Commissioners plus 2 for HCDC Items (residents only) 4 years March 31st Bi-monthly Developmental Services Current Status: There are currently six (6) expired terms on the Planning Commission and one (1) term that will expire on March 31, 2011. in 2009 the City Council adopted Ordinance 2009-2325 which expanded the duties of the Planning Commission to include acting as the Committee for Housing and Community Development (HCDC), and expanded the Planning Commission to include "...two (2) ex officio members to four year terms, who shall be tenants of the Community Development Commission, and one (1) of whom shall be over 62 years of age. Said ex officio members shall sit with the seven (7) members of the Planning Commission on such occasions as the Commission is acting in the capacity and carrying out the functions of the HCDC Committee". The two (2) ex officio members have not yet been appointed. Current Members Albert Alverado George Baca Maria De Lapaz Alfredo Farias Dolores Flores Alethea Pruitt Vincent Reynolds New Applicants Roberto Garcia Janice Martinelli Gonzalo J. Quintero Ditas Yamane Request Re -appointment Yes Yes Yes Yes Yes Yes Yes Interviewed Yes Yes Yes No Yes Yes Yes Interviewed Yes Yes Yes No TRAFFIC SAFETY COMMITTEE Appointing Authority Members: Length of Term: Term Ends: Meets: Staff Provided by: Mayor with approval of City Council 5 (residents only) 3 years September 30th Monthly Developmental Services Current Status: There is one (1) current vacancy on the Traffic Safety Committee and there are four (4) expired terms. Current Members Cheryl Howery-Colmenero Brian Clapper Arlito Reclosado Mary Martin New Applicants Gonzalo J. Quintero Ditas Yamane Request Re -appointment Yes Yes Yes No Response Interviewed No Yes No Interviewed Yes No REGIONAL BOARDS AND COMMITTEES SAN DIEGO COUNTY WATER AUTHORITY Appointing Authority: Mayor with approval of City Council Current Representative Appointed Term Expires Ron Morrison 02-19-2008 03-08-2014 SWEETWATER AUTHORITY Appointing Authority: Mayor with approval of City Council Current Representatives Appointed Term Expires Interviewed Ron Morrison 12-19-2006 12-31-2010 **Ted Muehleisen 05-19-2009 12-31-2010 No **requests reappointment Applicants Darryl G. Gorham No Jess Van Deventer Yes SAN DIEGO UNIFIED PORT DISTRICT Appointing Authority: City Council Current Representative Appointed Term Expires Dukie Valderrama 12-16-2008 01-02-2013 METROPOLITAN TRANSIT SYSTEM BOARD (MTS) Appointing Authority: Mayor with approval of City Council Current Representative Appointed Term Expires Jess Van Deventer 09-01-2009 * see note below Rosalie Zarate (Alternate) 09-01-2009 Applicant Jess Van Deventer Interviewed Yes SAN DIEGO ASSOCIATION OF GOVERNMENTS (SANDAG) Appointing Authority: City Council Current Representative Appointed Term Expires Ron Morrison 12-01-1998 * see note #2 below 1ST Alternate: Vacant 2nd Alternate: Rosalie Zarate METRO WASTEWATER JPA Appointing Authority: Mayor with approval of City Council Current Representative Appointed Term Expires Primary - Alejandra Sotelo-Solis 09-01-2009 * see note #3 below Alternate — Joe Smith HEARTLAND COMMUNICATIONS Appointing Authority: Goveming Body of member agency Current Representative Appointed Term Expires Primary — Rosalie Zarate 02-19-2008 * see note #3 below Alternate — Vacant BAY SHORE BIKEWAY WORKING GROUP Appointing Authority: Mayor with approval of City Council Current Representative Appointed Term Expires Rosalie Zarate 01-18-2005 * see note #3 below PORT OF SAN DIEGO PUBLIC ART COMMITTEE Appointing Authority: Mayor with approval of City Council Current Representative Appointed Term Expires Chris Zapata 10-13-2009 10-03-2011 REGIONAL SOLID WASTE AUTHORITY Appointing Authority: Mayor with approval of City Council Current Representative Appointed Term Expires Ron Morrison 06-07-1994 * see note #3 below INDEPENDENT FINANCIAL REVIEW COMMITTEE — TRANSACTION AND USE TAX Appointing Authority: Mayor with approval of City Council Current Representatives To be determined This committee is to be appointed five years after voter approval of the Transaction and Use Tax measure. The committee should be appointed in 2011. NOTES * note 1 : * note #2 : National City's MTS representative must be a current or former elected National City official. Therefore, former Councilmember Van Deventer may continue to serve as National City's representative to MTS or the City Council may make a new appointment. The City Council's intention should be reflected in a formal vote. There is no established term. SANDAG requests annual action or notification confirming the City's representatives by January 10 of each year. • note #3: There is no established term. Serves at the pleasure of the appointing authority or until no longer an elected official. — cALIEQ wW, _ INCpRpoRATED Memo DATE January 5, 2011 ITEM #3 1/25/11 TO Lavonne Watts, Executive Assistant IV (City Manager's Office) Josie Flores -Clark, Executive Assistant III (Mayor/Council Office) FROM Lilia Munoz, HR Technician(./ � SUBJECT : ANNIVERSARY RECOGNITION77 The following City employee will complete her twenty years of service with the City of National City on January 14, 2011: NAME Brenda E. Hodges POSITION Community Services Director HIRED January 14, 1991 As part of the Employee Recognition Program, the employee wishes to have the opportunity to receive a City Council Recognition at the Council Meeting of Tuesday, January 25, 2011. If this is acceptable, please make the necessary arrangements and send confirmation of the schedule to the employee, department and our office. The recognition letter, gift catalog and anniversary pin will be sent prior to the presentation. Thank you. xc: Brenda Hodges, Community Services Director Leslie Deese, Assistant City Manager H:`,Recognition Program Human Resources Department 140 E. 12th Street, Suite A, National City, CA 91950-3312 619/336-4300 Fax 619/336-4303 www.nationalcityca.gov Ce: ITEM # 4 1 /25/11 APPROVAL OF THE MINUTES OF THE REGULAR CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION MEETING OF DECEMBER 7, 2010. (CITY CLERK) City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Dalla, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 To: Honorable Mayor and Council From: Michael R. Dalla, City Clerk Subject: Ordinance Introduction and Adoption ITEM#5 ./25/ll It is recommended that the City Council approve the following motion as part of the Consent Calendar: "That the City Council waive reading of the text of all Ordinances considered at this meeting and provide that such Ordinances shall be introduced and/or adopted after a reading of only the title." ® Recycled Paper CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 25th, 2010 AGENDA ITEM NO. 16 EM TITLE: Warrant Register #23 for the period of 12/01/10 through 12/07/10 in the amount of $1,133,405.38 PREPARED BY: K. Apalategui DEPARTMENT: Finn PHONE: 619-336-4331 APPROVED BY: EXPLANATION: Per Government Section Code 37208, attached are the warrants issued for the period of 12/01/10 through 12/07/10 The Finance Department has implemented a policy explanation of all warrants above $50,000.00 Vendor Check Amount Explanation San Diego Habitat for 239426 $151,858.00 DDA w/Habitat for the The Humanity Humanity FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Ratification of warrants in the amount of $1,133,405.38 BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: rant Register #23 PAYEE DIXIELINE BUILDERS SAN DIEGO HABITAT FOR HUMANITY TIERRA WEST ADVISORS INC U S BANK SERVICE CENTER 3M COMPANY AYLES BALLERINI COURT REPORTERS BANC OF AMERICA PUBLIC & BEARD BONSUISSE INC BOOT WORLD CALIFORNIA BAKING CO. CALIFORNIA ELECTRIC SUPPLY CITY CHEVROLET CLAIMS MANAGEMENT ASSOCIATES CORPORATE PAYMENT SYSTEMS CORPORATE PAYMENT SYSTEMS ^OUNTY OF SAN DIEGO RUNTY OF SAN DIEGO PL CABLE PIPE & LEAK DETECT CULLIGAN DATA TICKET INC D-MAX ENGINEERING EMPLOYMENT DEVELOPMENT DEPT ESGIL CORPORATION FERGUSON ENTERPRISES INC FIRST AMERICAN CORE LOGIC, INC GEORGE WATERS GEOSYNTEC CONSULTANTS GHA TECHNOLOGIES GIEDD GRAINGER HUSK PARTNERS IMAGING PRODUCTS JOHN DEERE LANDSCAPES JOSSE KAISER FOUNDATION HEALTH PLANS LADRIDO LOPEZ MASON'S SAW & MEEKS MINER ORA OSSY NISSAN OLIVER PACKAGING & PERRY FORD POWERSTRIDE BATTERY CO INC PRO BUILD WARRANT REGISTER # 23 12/7/2010 DESCRIPTION CONSTRUCTN SVCS/CASA FAMILIAR DDA WITH HABITAT FOR HUMANITY AGREEMENT / TIERRA WEST ADVISORS CREDIT CARD EXPENSES / CDC PROGRESSIVE GLASSES / WASTEWATER BASIC TRAFFIC COLLISION INVEST HEARING ON THE APPEAL CAT LOADER LEASE PMT#19 12/24/10 125 PLAN REIMBURSEMENT MILK AND DAIRY DELIVERY MOP 64096 WEARING APPAREL BREAD DELIVERY FOR NUTRITION MOP 45698 ELECTRICAL MATERIALS 2011 CHEVROLET TRAVERSE FWD CONS SVCS / LIABILITY & RISK DEC 2010 US BANK CITY CREDIT CARD US BANK CITY CREDIT CARD STORMWATER SHARED COSTS PROGRAM MAIL PROCESSING SVC LOCATE PVC WATER LINE/ELECTRICAL WATER SOFTENER SVC FOR KITCHEN APPEALS, ON-LINE ACCESS TO TICKET NPDES SERVICES UNEMPLOYMENT REIMB 7/01-9/30/10 PLAN CHECK SERVICES FOR FIRE MOP 45723 PLUMBING MATERIALS METROSCAN ANNUAL RENEWAL QUARTERLY BREAKFAST NOV 2010 835 BAY MARINA DRIVE PANASONIC TOUGHBOOK LAPTOP CLEARS CONFERENCE 2010 MOP 65179 SMALL TOOLS CONSULTING SERVICES / DEC 2010 DIGITAL VOICE RECORDER MOP 69277 MATERIALS & SUPPLIES 125 PLAN REIMBURSEMENT FOWLER, DWIGHT TRAV EXP FOR GFOA TRAINING TRANSLATION SERVICES FY 10/11 MOP 45729 SMALL TOOLS CATO CONFERENCE 2010 FRESNO TRAINING SYMPOSIUM FRESNO TRAINING SYMPOSIUM 2011 NISSAN ALTIMA, 3.5 SR SEDAN HOME DELIVERED TRAYS/CONSUMABLES MOP 45703 R&M AUTO EQUIPMENT MOP 67839 AUTO PARTS MOP 45707 SMALL TOOLS 1/2 CHK NO DATE AMOUNT 239425 12/7/10 4,304.59 239426 12/7/10 151,858.00 239427 12/7/10 21,811.50 239428 12/7/10 606.55 239429 12/7/10 106.83 239430 12/7/10 86.80 239431 12R/10 672.50 239432 12/7/10 3,077.02 239433 1217/10 196.66 239434 12/7/10 268.13 239435 12R/10 242.43 239436 12/7/10 192.00 239437 12/7/10 6.10 239438 12/7/10 28,106.87 239439 12/7/10 4,965.00 239440 12/7/10 1,988.57 239441 12/7/10 19.95 239442 12/7/10 48,041.00 239443 12/7/10 5,760.21 239444 12/7/10 250.00 239445 12/7/10 208.05 239446 12/7/10 16, 061.95 239447 12/7/10 26,482.58 239448 12/7/10 21,594.15 239449 12/7/10 3,570.90 239450 12/7/10 288.04 239451 12/7/10 7,000.00 239452 12/7/10 1,125.00 239453 12/7/10 290.04 239454 12/7/10 6,387.53 239455 12/7/10 87.04 239456 12/7/10 644.61 239457 12/7/10 7,500.00 239458 12/7/10 4,565.60 239459 12/7/10 76.67 239460 12/7/10 384.60 239461 12/7/10 2,602.14 239462 12/7/10 194.30 239463 12/7/10 140.00 239464 12/7/10 45.86 239465 12/7/10 76.49 239466 12/7/10 153.70 239467 12/7/10 539.56 239468 12/7/10 26,097.59 239469 12/7/10 1,256.00 239470 12/7/10 1,194. 90 239471 12R/10 392.69 239472 12R/10 2,143.62 2/2 PAYEE PRO -EDGE KNIFE PRUDENTIAL OVERALL SUPPLY RODRIGUEZ RON BAKER CHEVROLET ROUNDS SAN DIEGO HYDRAULICS SDG&E SILVA SMART SOURCE OF CALIFORNIA LLC SO -CAL ENTERPRISES STAPLES ADVANTAGE STINNETT SULLIVAN SWRCB SYSCO SAN DIEGO THE IDEA BANK THE SOHAGI LAW GROUP PLC THE STAR NEWS TIENG VIET SAN DIEGO NEWS TIGERDIRECT.COM U S HEALTHWORKS VALLEY INDUSTRIAL SPECIALTIES WADE & ASSOCIATES WAXIE SANITARY SUPPLY WESTFLEX INDUSTRIAL CALIFORNIA HIGHWAY ADOPTION CO NATIONAL CITY HISTORICAL SOCIE NATIONAL CITY HISTORICAL SOCIE NATIONAL CITY HISTORICAL SOCIE NC HISTORICAL SOCIETY NC HISTORICAL SOCIETY NCPOA NCPOA NCPOA NCPOA NCPOA U S BANK SERVICE CENTER SECTION 8 HAPS PAYMENTS A°' Carr e o i -� INCORYORAT V WARRANT REGISTER # 23 12/7/2010 DESCRIPTION KNIFE SHARPENING SERVICES MOP 45742 LAUNDRY SERVICE 125 PLAN REIMBURSEMENT MOP 45751 R&M AUTO EQUIPMENT 125 PLAN REIMBURSEMENT SEAL KIT REPLACEMENT FACILITIES DIVISION GAS & ELECTRIC 125 PLAN REIMBURSEMENT WINDOW ENVELOPES WH STOCK#388150 MOP 73565 AUTO PARTS MOP 45704 OFFICE SUPPLIES BASIC TRAFFIC COLLISION INVEST CATO CONFERENCE 2010 SWRCB ANNUAL PERMIT COST FOOD/CONSUMABLES SIX -TITLE FIRE PREVENTION DVD LIBRARY LEGAL SVCS AGREEMENT / OCT2010 BICYCLE MASTER PLAN NOTICE OF CANDIDATES INV P26583730104/P26563730103 MEDICAL SERVICES MOP 46453 PLUMBING MATERIAL PROVIDE ON CALL PROFESSIONAL 9346 CLEARVUE SOAP DISPENSER MOP 63850 AUTO PARTS PARADISE CREEK LITTER REMOVAL NC HISTORICAL DINNER / CW ZARATE NC HISTORICAL SOCIETY / MC RIOS NC HISTORICAL SOC DINNER/CM NATIVIDAD NC HISTORICAL SOC DINNER / MAYOR NC HIST SOC DINNERNM SOTELO-SOLIS NCPOA CHRISTMAS 2010 / CM ZARATE NCPOA CHRISTMAS 2010 / CM RIOS NCPOA CHRISTMAS 2010 / CM NATIVIDAD NCPOA CHRISTMAS 2010/ SOTELO-SOLIS NCPOA CHRISTMAS 2010 / MAYOR CREDIT CARD EXPENSES / POLICE Start Date End Date 12/1/2010 12/7/2010 CHK NO DATE AMOUNT 239473 12/7/10 46.00 239474 12/7/10 223.24 239475 12/7/10 774.00 239476 12R/10 202.03 239477 12/7/10 822.49 239478 12/7/10 185.52 239479 12/7/10 17,116.08 239480 12/7/10 644.41 239481 12/7/10 1,668.20 239482 12R/10 124.98 239483 12/7/10 978.33 239484 12/7/10 86.80 239485 12/7/10 92.03 239486 12/7/10 13,499.00 239487 12/7/10 1,542.46 239488 12/7/10 275.60 239489 12R/10 5,232.90 239490 12/7/10 30.75 239491 12/7/10 60. 239492 12/7/10 2,719.6, 239493 12/7/10 110.00 239494 12R/10 594.60 239495 12/7/10 10, 843.00 239496 12/7/10 249.90 239497 12/7/10 64.84 239498 12/7/10 864.00 239499 12/7/10 25.00 239500 12/7/10 25.00 239501 12/7/10 25.00 239502 12/7/10 50.00 239503 12/7/10 25.00 239504 12/7/10 50.00 239505 12/7/10 50.00 239506 12/7/10 50.00 239507 12/7/10 50.00 239508 12/7/10 50.00 239509 12/7/10 29.88 A/P Total 463,145.22 670,260.16 GRAND TOTAL $ 1,133,405.. CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 25th, 2010 AGENDA ITEM NO. 17 _ _ EM TITLE: Warrant Register #24 for the period of 12/08/10 through 12/14/10 in the amount of $2,582,624.61 PREPARED BY: K. Apalategui DEPARTMENT: PHONE: 1619-336-4331 APPROVED BY: EXPLANATION: Per Government Section Code 37208, attached are the warrants issued for the period of 12/08/10 through 12/14/10 The Finance Department has implemented a policy explanation of all warrants above $50,000.00 Vendor Black Rock Construction Ohno Construction Co. Project Design Cons Public Emp Ret System blic Emp Ret System vpartner riGFA/City of el Cajon FINANCIAL STATEMENT: ACCOUNT NO. N/A Check 239538 239625 239635 239638 239639 239705 239706 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: Amount $69,546.20 $244,846.26 $50,805.58 $258,900.89 $250,579.23 $77,200.00 $58,435.00 FINAL ADOPTION: APPROVED: APPROVED: Explanation Concrete Improv Project Soccer Field Project NC General Plan Update Service Period 11-10-5 Service Period 12-10-3 Permit tracking system ual Dis tching Memb Finance MIS STAFF RECOMMENDATION: Ratification of warrants in the amount of $2,582,624.61 BOARD 1 COMMISSION RECOMMENDATION: N/A ATTACHMENTS: arrant Register #24 PAYEE FAIR HOUSING COUNCIL OF SD AMAZON BAKER & TAYLOR LOCH DAVID CRANE MIDWEST TAPE SPRINT STAPLES ADVANTAGE THE SHOPPER, INC. THOMSON GALE U S POSTMASTER BEST BEST & KRIEGER LLP CA ASSOC OF CODE ENFORCEMENT EQUIFAX INFORMATION SVCS GEORGE A & OLGA T CONTRERAS NINYO & MOORE PRO BUILD` ZUDENTIAL OVERALL SUPPLY kN DIEGO TROLLEY INC VISTA PAINT WESTFLEX INDUSTRIAL ABCANA INDUSTRIES ADDICTION MEDICINE ALL AMERICAN BUILDING AND ALL FRESH PRODUCTS ARCO GASPRO PLUS AT&T/MCI BALDWIN CONSTRUCTION BEST BEST & KRIEGER LLP BLACK ROCK CONSTRUCTION CO. BLACKIE'S TROPHIES AND AWARDS BLUE PACIFIC ENGINEERING BOGLE BONSUISSE INC BOOT WORLD BRENNTAG PACIFIC INC BROADWAY AUTO ELECTRIC CA ASSOC OF CODE ENFORCEMENT CAL EXPRESS CALIFORNIA BAKING CO. CALIFORNIA ELECTRIC SUPPLY CHELIUS IEVRON & TEXACO BUSINESS CARD _ NTAS DOCUMENT MANAGEMENT CITY OF NATIONAL CITY CLEAN HARBORS CLEARS COMMERCIAL AQUATIC SERVICES WARRANT REGISTER # 24 12/14/2010 DESCRIPTION CDBG PROGRAM SUB -RECIPIENT AGMNT ADULT NON-FICTION BOOKS ADULT NON-FICTION BOOKS FAMILY LITERACY NIGHT - HOLIDAY SHOW DVD'S FOR THE COLLECTION VIDEO CONFERENCING, LONG DISTANCE MOP #45704 OFFICE SUPPLIES PROCESSING SUPPLIES FOR DVD'S REFERENCE BOOKS POSTAGE FOR OVERDUE NOTICES RDA AMENDMENT MATTERS 2011 CACEO MEMBERSHIP COST CREDIT CHECK FOR SEC8 REIMBURSEMENT FOR LOAN CDC GEOTECHNICAL MAT TESTING SVCS MOP# 45707. PAINTING SUPPLIES/NSD MOP# 45742. LAUNDRY SERVICES/NSD FLAGGING SERVICES MOP 68834 PAINTING SUPPLIES -CD MOP 63850 AUTO PARTS POOL CHEMICALS MED SVCS FOR 01/01/11 - 06/30/11 RE -ROOF POOL MECHANICAL ROOM FOOD FOR NUTRITION CENTER FUEL FOR CITY FLEET TELECOMMUNICATIONS SVC FOR NC REFUND OF C & D FEES COMM YOUTH ATHLETIC CENTER PROGRESS PYMT 1 FOR CONCRETE IMPROV MOP 67727 METAL NAME TAG - PD PROGRESS PAYMENT 1 ART CENTER REIMB-CONTINUING CHALLENGE CONE MILK AND DAIRY DELIVERY FOR NUTRITION MOP 64096 WEARING APPAREL MUNICIPAL POOL CHEMICALS ELECTRICAL PARTS 2011 CACEO MEMBERSHIP COST COURT FILING ARE HOLDINGS BREAD DELIVERY FOR NUTRITION MOP 45698 ELECTRICAL MATERIAL SUBSISTENCE -FIELD EVIDENCE TECH MOP 45699 GAS MONTHLY SHREDDING PETTY CASH REPLENISHMENT-OCT 2010 HAZARDOUS WASTE PICKUP MEMBERSHIP (2) CA LAW ENFORCEMENT POOL EMERGENCY REPAIRS 1/5 CHK NO DATE AMOUNT 239510 12/13/10 9,414.00 239511 12/14/10 1,023.92 239512 12/14/10 1,375.66 239513 12/14/10 125.00 239514 12/14/10 353.24 239515 12/14/10 11.11 239516 12/14/10 64,92 239517 12/14/10 402.35 239518 12/14/10 300.83 239519 12/14/10 308.00 239520 12/14/10 42,011.91 239521 12/14/10 140.00 239522 12/14/10 98.98 239523 12/14/10 33.86 239524 12/14/10 1,909.75 239525 12/14/10 182.75 239526 12/14/10 82.16 239527 12/14/10 24.88 239528 12/14/10 1,701.11 239529 12/14/10 62.06 239530 12/14/10 1,559.06 239531 12/14/10 797.50 239532 12/14/10 9,925.00 239533 12/14/10 6,299.21 239534 12/14/10 28,392.51 239535 12/14/10 693.60 239536 12/14/10 25.02 239537 12/14/10 6,440.91 239538 12/14/10 69,546.20 239539 12/14/10 10.88 239540 12/14/10 27,752.63 239541 12/14/10 199.79 239542 12/14/10 718.26 239543 12/14/10 125.00 239544 12/14/10 1,564.71 239545 12/14/10 467.63 239546 12/14/10 140.00 239547 12/14/10 79.00 239548 12/14/10 144.00 239549 12/14/10 140.62 239550 12/14/10 1,335.68 239551 12/14/10 76.08 239552 12/14/10 72.95 239553 12/14/10 754.49 239554 12/14/10 389.74 239555 12/14/10 60.00 239556 12/14/10 362.50 PAYEE COOPER'S PLUMBING & HEATING CORNEJO COUNTY OF SAN DIEGO COX COMMUNICATIONS CREATIVE IMAGES PHOTOGRAPHY CSULB FOUNDATION CSULB FOUNDATION CULLIGAN D MAX ENGINEERING INC D MAX ENGINEERING INC DAPPER TIRE COMPANY DAY WIRELESS SYSTEMS DE JUAN ALEXANDER WILMORE DELL MARKETING CORP DELTA DENTAL PLAN OF CA DELTA DENTAL PLAN OF CA DELTA CARE (PMI) DEPARTMENT OF INDUSTRIAL DEPARTMENT OF JUSTICE DIAZ DILLARD DREW FORD EDCO DISPOSAL CORPORATION EHS LABORATORIES EXPERIAN FABINSKI FAST SIGNS FRANK TOYOTA G & A AUTOMOTIVE, INC. GEOSYNTEC CONSULTANTS GOFFIGAN GONZALES GONZALEZ GRAINGER GTC SYSTEMS INC HAMILTON MEATS & PROVISIONS HODGES HONEYWELL INTERNATIONAL INC HORIZON HEALTH EAP HUNTERS NURSERY INC. HYDRO-SCAPE PRODUCTS INC. IKON OFFICE SOLUTIONS INDEPENDENT FORENSIC SERVICES INTERNATIONAL CODE COUNCIL INC JERAULDS CAR CARE CENTER KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS INGORPOAATty WARRANT REGISTER # 24 12/14/2010 DESCRIPTION PLUMBING SERVICES, REPAIRS, SUBS -FIELD EVIDENCE TECHNICIAN GEN HAZ MAT PERMIT - POOL HIGH SPEED 60MB DATA CIRCUIT INDIVIDUAL PORTRAITS TUITION -FIELD EVIDENCE-J CORNEJO TUITION: CHELIUS, A -FIELD EVIDENCE WATER SOFTNER SERVICE DEP#1377 FRASER BOILER PROJECT DEP#1386 AUTOZONE TIRES FOR CITY FLEET INV #45504 SERVICE ON RADIO REFUND -COPY OF REPO RELEASE VOSTRO 230 MINI TOWER, CORE DUO CITY SHARE 10/18/10, 11/01/10 COBRA DENTAL INS - NOV 2010 DENTAL INS PMI - DEC 2010 INSPECTION AT LAS PALMAS POOL INVESTIGATIVE SVCS - OCT 2010 REIMB - CONTINUING CHALLENGE CONE EDUCATIONAL REIMBURSEMENT MOP 49078 AUTO PARTS WASTE DISPOSAL FOR CDC- NOV 2010 LEAD WIPES CREDIT CHECKS FOR NEW PD EMP SUBSISTENCE-SUPERVISORY/LEADERSHIP BANNER SERVICES TOYOTA PRIUS HYBRID MOP 72655 R&M AUTO EQUIPMENT CDC EDUCATION VILLAGE PARAMEDIC GRIDGE COURSE TRAINING OFFICER UPDATE COURS DV AND SEXUAL ASSAULT TRAINING MOP 65179 MATERIALS & SUPPLIES NETWORK ENGINEERING HOURS MEAT DELIVERY FOR NUTRITION CENTER GIFT CARD TO OLIVE GARDEN MECHANICAL HVAC MAINTENANCE EMP ASST PROGRAM - NOV 2010 MOP 45719 HORTICULTURAL ITEMS MOP 45720 PIPES & FITTINGS MAINTENANCE AND SUPPLY BILLINGS FOR SART EXAMS MEMBERSHIP - BONIFACIO SALAZAR MOP 72449 R&M AUTO EQUIPMENT RETIREES INS (CALPERS DED) DEC 2010 RETIREES INS - DEC 2010 2/5 CHK NO DATE AMOUNT 239557 12/14/10 552.50 239558 12/14/10 1,335.68 239559 12/14/10 531.00 239560 12/14/10 29.16 239561 12/14/10 250.00 239562 12/14/10 669.00 239563 12/14/10 669.00 239564 12/14/10 3.50 239565 12/14/10 2,662.50 239566 12/14/10 775.00 239567 12/14/10 2,690.90 239568 12/14/10 320.00 239569 12/14/10 15.00 239570 12/14/10 18,867.92 239571 12/14/10 12, 832.27 239572 12/14/10 285.07 239573 12/14/10 3,069'- 239574 12/14/10 125 239575 12/14/10 448.00 239 576 12/14/10 139.21 239577 12/14/10 266.00 239578 12/14/10 411.07 239579 12/14/10 104.75 239580 12/14/10 18.00 239581 12/14/10 27.24 239582 12/14/10 407.36 239583 12/14/10 3,512.00 239584 12/14/10 1,058.91 239585 12/14/10 249.48 239586 12/14/10 65.21 239587 12/14/10 713.00 239588 12/14/10 52.08 239589 12/14/10 181.77 239590 12/14/10 1,031.00 239591 12/14/10 682.50 239592 12/14/10 1,405.15 239593 12/14/10 50.00 239594 12/14/10 32,074.99 239595 12/14/10 748.22 239596 12/14/10 70,69 239597 12/14/10 614.2' 239598 12/14/10 5,23£ 239599 12/14/10 1,404.5u 239600 12/14/10 35.00 239601 12/14/10 384.74 239602 12/14/10 22,755.73 239603 12/14/10 10,458.62 PAYEE KANE BALLMER & BERKMAN KELLY EQUIPMENT L1 IDENTITY SOLUTIONS LASER SAVER INC LAW OFFICES OF DON DETISCH LEAGUE OF CA CITIES MAINTEX INC MAN K-9 INC. MASON'S SAW & MAZZARELLA CALDARELLI LLP MEYERS/NAVE LAW CORP MINE SAFETY APPLIANCES CO INC. MORRISON MUNICIPAL CODE CORPORATION MUNOZ NAPA AUTO PARTS SCO TIONAL CITY AUTO TRIM NATIONAL CITY CAR WASH NEXUS IS INC OCB REPROGRAPHICS CO. LLC OHNO CONSTRUCTION CO. ONE SOURCE DISTRIBUTORS PACIFIC AUTO REPAIR PADRE JANITORIAL SUPPLIES INC PERRY FORD PHILLIPS PMW ASSOCIATES POWERSTRIDE BATTERY CO INC PRO BUILD PRO -EDGE KNIFE PROJECT DESIGN CONSULTANTS PROJECT PROFESSIONALS CORP. PRUDENTIAL OVERALL SUPPLY PUBLIC EMP RETIREMENT SYSTEM PUBLIC EMP RETIREMENT SYSTEM PUBLIC FINANCIAL MANAGEMENT R.J. SAFETY SUPPLY RIVERSIDE COUNTY SHERIFF DEPT RODRIGUEZ RU1SS' BEE REMOVAL 5. S WORLDWIDE INC & S WORLDWIDE INC SAM'S ALIGNMENT SERVICE SAN DIEGO BMW MOTORCYCLES SAN DIEGO COUNTY ASSESSOR SAN DIEGO DAILY TRANSCRIPT WARRANT REGISTER # 24 12/14/2010 DESCRIPTION 2011 COMMUNITY REDEV LAW CD LATCH, T HANDLE NEW EMP FINGERPRINT TEST-OCT 2010 TONER CARTRIDGE - FINANCE PLAZA BLVD/MISC MATTERS ANNUAL CITY MEMBERSHIP 2011 MISC JANITORIAL SUPPLIES K9 TRAINING - NOV 2010 MOP 45729 MATERIALS & SUPPLIES PORT OF SD MATTERS CONSULT/MOU NEGOTIATIONS REPAIR THERMAL IMAGING CAMERA COLOR INKJET PRINTER MUNICIPAL CODE SUPPLEMENT#31 CIVIL SERVICE COMMISSIONERS MOP 45735 OIL, LUBRICANT PYRAMID POSTER MOP 72441 R&M BUILDINGS CAR WASHES PHONE SYSTEM ADD MOVES CHANGES PLAN COPYING FOR ADA IMPROVEMENTS PAYMENT 1 FOR SOCCER FIELD MOP 67256 ELECTRICAL MATERIAL SMOG CERTIFICATION & REPAIRS JANITORIAL SUPPLIES FOR NUTRITION MOP 45703 R&M AUTO EQUIPMENT SUBSISTENCE -CRIMINAL INVESTIGATIONS TUITION-SUPERVISORYILEADERSHIP-FABINS MOP 67839 AUTO PARTS MOP 45707 MATERIALS & SUPPLIES KNIFE SHARPENING SERVICES NC GENERAL PLAN UPDATE PM/INSPECTIONS ST RESURFACING MOP 45742 LAUNDRY SERVICE SERVICE PERIOD 11-10-5 SERVICE PERIOD 12-10-3 NC DEFEASANCE JUSTRITE RED 2-GALLON TYPE II SAFETY TUITION -CRIMINAL INVESTIGATI -W PHILLIPS REFUND OF C&D FEES BEE REMOVAL INSPIRATIONAL BEADS SALES TAX ON INVOICE WHEEL ALIGNMENT R&M CITY VEHICLES MPR EXTRACT ADV BICYCLE MASTER PLAN PROJECT 3/5 CHK NO DATE AMOUNT 239604 12/14/10 110.00 239605 12/14/10 196.67 239606 12/14/10 30.00 239607 12/14/10 263.29 239608 12/14/10 5,298.69 239609 12/14/10 600.00 239610 12/14/10 635.12 239611 12/14/10 800.00 239612 12/14/10 209.40 239613 12/14/10 412.50 239614 12/14/10 2,255.00 239615 12/14/10 810.86 239616 12/14/10 64.13 239617 12/14/10 1,801.29 239618 12/14/10 77.95 239619 12/14/10 195.64 239620 12/14/10 110.03 239621 12/14/10 137.19 239622 12/14/10 272.00 239623 12/14/10 210.00 239624 12/14/10 186.14 239625 12/14/10 244,846.26 239626 12/14/10 78.42 239627 12/14/10 668.88 239628 12/14/10 410.83 239629 12/14/10 934.84 239630 12/14/10 668.36 239631 12/14/10 409.00 239632 12/14/10 265.76 239633 12/14/10 492.42 239634 12/14/10 46.00 239635 12/14/10 50,805.58 239636 12/14/10 29,690.25 239637 12/14/10 580.45 239638 12/14/10 258,900.89 239639 12/14/10 250,579.23 239640 12/14/10 6,250.00 239641 12/14/10 190.09 239642 12/14/10 138.00 239643 12/14/10 210.00 239644 12/14/10 375.00 239645 12/14/10 201.21 239646 12/14/10 19.61 239647 12/14/10 1,042.22 239648 12/14/10 639.79 239649 12/14/10 125.00 239650 12/14/10 26.45 PAYEE SAN DIEGO PET & LAB SUPPLY SAN DIEGO SPEEDO TACH, INC. SARMIENTO SDG&E SHERRILL, INC. SO -CAL ENTERPRISES SOUTH BAY WINDOW & GLASS CO SOUTHWEST SIGNAL SERVICE SPARKLETTS STANICH STAPLES ADVANTAGE STATE OF CALIFORNIA SUPERIOR READY MIX SWEETWATER AUTHORITY SYSCO SAN DIEGO THE LIGHTHOUSE INC THE STATE BAR OF CALIFORNIA THE STATE BAR OF CALIFORNIA THE UNION TRIBUNE PUBLISHING THOMPSON PUBLISHING GRP, INC. TOM MOYNAHAN TURNER'S PORTABLE WELDING U S BANK SERVICE CENTER UNDERGROUND SERVICE ALERT UNION -TRIBUNE PUB. CO. UNITED PARCEL SERVICE UNITED ROTARY BRUSH CORP VALLEY INDUSTRIAL SPECIALTIES VCA EMERGENCY ANIMAL HOSPITAL VERIZON WIRELESS VERIZON WIRELESS VISTA PAINT WAXIE SANITARY SUPPLY WESTFLEX INDUSTRIAL WILLIAM EISNER & ASSOCIATES WILLIAMS WILLY'S ELECTRONIC SUPPLY WOOD & WOOD YASUDA TREE NURSERY Z.A.P. MANUFACTURING, INC ALLIANT INSURANCE SVCS INC ASSI SECURITY AWARD MASTER INC AYLES BROADWAY AUTO GLASS CCH CDWG - taicoRiqi4uoirtu WARRANT REGISTER # 24 12/14/2010 DESCRIPTION MOP 45753 K9 FOOD SPEEDOMETER CALIBRATIONS REPLACED PAYROLL CK#36062 STREET GAS & ELECTRIC GRIZZLY SPLICED 10 MM BEE -LINE PRUSIK MOP 73565 AUTO PARTS WINDOW REPLACEMENT TRAFFIC SIGNAL & STREET LIGHTING SPARKLETTS WATER / DELIVERY DV AND SEXUAL ASSAULT TRAINING MOP 45704 OFFICE SUPPLIES - FINANCE WC CLAIM COSTS COLDMIX ASPHALTS WASTEWATER WATER BILL FOOD & CONSUMABLES FOR NUTRITION MOP 45726 AUTO PARTS CA STATE BAR MEMBERSHIP CA STATE BAR MEMBERSHIP LEGAL NOTICES ADVERTISING FAIR LABOR HANDBOOK MOP 45734 TOWING CHARGE LABOR, WELD REPAIRS CREDIT CARD EXP - PD UNDERGROUND SVC ALERT CHRGS PUBLICATION OF PLANNING COMMISSION UPS SHIPMENT SWEEPER REPAIRS MOP 46453 PLUMBING MATERIAL ER ANIMAL CARE FOR STRAY WIRELESS SERVICE FOR ALL CITY CEDV GRANT - J WHITE MOP 68834 TRAFFIC CONTROL SUPPLY MISC JANITORIAL SUPPLIES MOP 63850 AUTO PARTS YOU PROMISED POSTER CRIMINAL JUSTICE COURSE MOP 45763 COMPUTER SUPPLIES LIABILITY CLAIM COSTS 36' BAUHINIA BLAKEANA TREE 809-EXTRUDED POLE CAP BOLT LIABILITY INSURANCE FUND CITY-WIDE CARD ACCESS PROJECT SHADOW BOX/ CM VAN DEVENTER TRAVEL REIMBURSEMENT/TRAINING DD10603GTY DIIR GREEN TINT W/CLIPS BOOK / GOV GAAP GUIDE 2011 MS OFFICE ULTIMATE 2007 4/5 CHK NO DATE AMOUNT 239651 12/14/10 288.69 239652 12/14/10 194.00 239653 12/14/10 279.53 239654 12/14/10 40,783.69 239655 12/14/10 143.97 239656 12/14/10 48.75 239657 12/14/10 131.86 239658 12/14/10 14, 929.63 239659 12/14/10 23.34 239660 12/14/10 176.56 239661 12/14/10 288.54 239662 12/14/10 44,047.86 239663 12/14/10 174.00 239664 12/14/10 236.80 239665 12/14/10 4,255.58 239666 12/14/10 117.43 239667 12/14/10 485 239668 12/14/10 410, 239669 12/14/10 730.00 239670 12/14/10 438.50 239671 12/14/10 50.00 239672 12/14/10 609.75 239673 12/14/10 969.60 239674 12/14/10 129.00 239675 12/14/10 1,073.60 239676 12/14/10 109.48 239677 12/14/10 1,591.56 239678 12/14/10 704.38 239679 12/14/10 40.00 239680 12/14/10 5,021.91 239681 12/14/10 112.21 239682 12/14/10 295.33 239683 12/14/10 2,563.98 239684 12/14/10 403.99 239685 12/14/10 615.00 239686 12/14/10 668.40 239687 12/14/10 212.64 239688 12/14/10 18, 834.12 239689 12/14/10 376.25 239690 12/14/10 499.36 239691 12/14/10 100 f 239692 12/14/10 1,341 239693 12/14/10 174:bu 239694 12/14/10 415.40 239695 12/14/10 260.00 239696 12/14/10 273.30 239697 12/14/10 1,476.30 5/5 PAYEE CDWG CHAPMAN APPLIANCE SVCS INC COX COMMUNICATIONS DAY WIRELESS SYSTEMS (20) DELL MARKETING CORP ESGIL CORPORATION FEDEX GOVPARTNER HCFA C/O CITY OF EL CAJON HUSK PARTNERS HYATT REGENCY HOTEL IRON MOUNTAIN LASER SAVER INC LEAGUE OF CALIFORNIA CITIES LEXIS-NEXIS LOPEZ ,YER HOFFMAN MCCANN PC )RE DIRECT MSA INTL CORPORATE HEADQTRS NINYO & MOORE ORIENTAL TRADING, CO., INC. PROJECT PROFESSIONALS CORP. PRUDENTIAL OVERALL SUPPLY SMART & FINAL STAPLES ADVANTAGE WATERS WEST PAYMENT CENTER WIRED PAYMENTS TRISTAR RISK MANAGEMENT PAYROLL Pay period Start Date 25 11/16/2010 Special Payroll G1F1: F R N1�4 +-t+ NAT _ INCOR o TE WARRANT REGISTER # 24 12/14/2010 DESCRIPTION SALES TAX APPLIANCE REPAIR / NUTRITION COX HIGH SPEED 60MB DATA CIRCUIT REMOVE AND REINSTALL REMOTE MOUNT DELL VOSTRO 3500 CONFIG 32 CONSULTANT SERVICES FOR BUILDING EXPRESS MAIL COURIER SERVICES GOVPARTNER(CDP) PERMIT TRACKING FY11 ANNUAL DISPATCHING MEMBERSHIP CONSULTING SERVICES FY 11 COUNCIL ACADEMY CONFERENCE/RIOS RECORDS MANAGEMENT/DOC STORAGE MOP 45725 TONER CARTRIDGE -CM REGISTRATION - ACADEMY FOR COUNCIL LEXIS-NEXIS ONLINE LEGAL RESEARCH TRANSLATION SERVICES FY 10/11 CITY AUDIT REPLACEMENT ETHERSCOPE BATTERY CARE TRAINING PERFORMED BY MSA MATERIALS TESTING SERVICES HOLIDAY CRAYONS 6PC/BOX -2 DZ BX SOCCER FIELD MOP 45742 - TOWELS - FIRE MOP 45756 ORAL BOARD/HEARINGS-COMM MOP# 45704. OFFICE SUPPLIES/C. CLERK REIMBURSEMENT / NUT FRYER REPAIR MONTHLY CHARGE FOR LEGAL PUB NOV 2010 WC REPLENISHMENT End Date 11/29/2010 Check Date 12/8/2010 12/8/2010 CHK NO DATE AMOUNT 239698 12/14/10 75.08 239699 12/14/10 260.00 239700 12/14/10 5,620.00 239701 12/14/10 1,395.00 239702 12/14/10 3,399.12 239703 12/14/10 28,378.87 239704 12/14/10 20.94 239705 12/14/10 77,200.00 239706 12/14/10 58,435.00 239707 12/14/10 7,500.00 239708 12/14/10 482.72 239709 12/14/10 131.00 239710 12/14/10 65.80 239711 12/14/10 540.00 239712 12/14/10 427.38 239713 12/14/10 140.00 239714 12/14/10 13, 500.00 239715 12/14/10 362.80 239716 12/14/10 1,575.00 239717 12/14/10 16,335.25 239718 12/14/10 262.94 239719 12/14/10 19,201.50 239720 12/14/10 124.02 239721 12/14/10 113.68 239722 12/14/10 66.67 239723 12/14/10 323.52 239724 12/14/10 1,155.11 A/P Total 1,595,456.52 32644679 12/13/10 GRAND TOTAL 43,684.69 943,302.58 180.82 $ 2,582,624.61 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 25, 2011 AGENDA ITEM NO. 8 EM TITLE: Public Hearing — Modification of a previously approved Tentative Subdivision Map to delete a Condition of Approval requiring utilities to be placed underground at 1205-1343 Fig Court. (Applicant Robert Gulota) (Case File 2010-36 M (S-2006-12) PREPARED BY: Martin Reeder DEPARTMENT: Develo me t- cs/Planning. PHONE: 336-4313 APPROVED BY: EXPLANATION: The applicant received Tentative Subdivision Map approval in 2007 for a 10-lot subdivision involving 10 identical duplexes on the north side of Fig Court. There are five utility poles along the project frontage, three of which were required to be removed. The applicant has been remodeling the units per the original approval and has completed half of the units. The current expiration date for the map is 2012. The applicant is requesting to modify the Conditions of Approval to waive the requirement to underground the existing utilities and remove the power poles. Since the project was approved, utilities installed as part of the construction of Pacific View Estates were routed to the westerly three utility poles, increasing equipment upon said poles. The Planning Commission staff report for this item dated January 10, 2011 is attached for your review. The Planning Commission conducted a public hearing on questions about the status of the subdivision and about City ad to recommend approval of the Tentative Subdivision _ __ject to Conditions of Approval. January 10, 2011, where Commissioners asked underground utility requirements. The Commission Map modification based on required findings and FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: Not a project under CEQA) ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Staff concurs with the decision of the Planning Commission. BOARD / COMMISSION RECOMMENDATION: The Planning Commission approved the Conditional Use Permit. Ayes: Alvarado, Baca, DeLaPaz, Farias, Flores Pruitt, Reynolds ATTACHMENTS: Location Map Planning Commission Staff Report 3. Resolution No. 2-2011 0 0 A) co W 9C-01-OZ N 0 CO 0 0 0. 0 0 (D — V V1 <51 0 w o� 7407 7403 740 7408 / 7329 7339 `/ 7340 7349 1346 salelsA Ma!A °Wed 1055 1375 (73 U) .77 /, / 1205 04 / 7407 i 34 7340 / 7405 � 7 /74p5 . Gilbe Cn 7437 44 Co 1402 74 40 / 7 6 ' 1406 74 7 / 1474 /� 7273 7 1- 7227 234 %�' 7 / 7�35 ' 7240 / cO� 7 0 / 7247 I 7304 / O / /._ i 305 % i 326 / 7327`__ 4 5 ct 7738 720 / 746 i 5 204 / 1272 1226 / • 742? l/7426 /,' S°1 902) 7335 �; / 34 CITY OF NATIONAL CITY - DEVELOPMENT SERVICES DEPARTMENT 1243 NATIONAL CITY BLVD., NATIONAL CITY, CA 91950 PLANNING COMMISSION STAFF REPORT Title: Case File No.: Location: Assessor's Parcel No.: Staff report by: Item no. 6 January 10, 2011 REQUEST FOR MODIFICATION OF A PREVIOUSLY APPROVED TENTATIVE SUBDIVISION MAP TO DELETE A CONDITION OF APPROVAL REQUIRING UTILITIES TO BE PLACED UNDERGROUND AT 1205-1243 FIG COURT. 2010-36 M (S-2006-12) North side of Fig Court 551-490-19 Martin Reeder — Assistant Planner Applicant /Property owner: Robert Gulotta Combined General Plan/ Zoning designation: Residential Single -Family Extendable (RS-3-PD) Parcel size: Adjacent land use/zoning: North: East: South: West: Environmental review: 1.41 acres Duplexes on Scott Drive / RS-3-PD Single-family residences / RS-3-PD Pacific View Estates across Fig Court / RS-3-PD Park Villas apartment complex / RM-2-PD Not a project under CEQA 2 BACKGROUND Site characteristics The project site is a 1.41-acre property in the RS-3-PD zone with over 700 feet of frontage on Fig Court. The lot slopes slightly from south to north and is developed with ten identical duplexes. There are five utility poles located along the frontage. The westerly three poles service solely the subject property, while the easterly two poles service properties across Fig Court in addition to the duplexes. History A Tentative Subdivision Map was approved in 2007 (S-2006-12) for a ten -lot subdivision intended to create a separate lot for each duplex. A condition of approval requiring the undergrounding of utilities, consistent with Section 13.08.020 (A) of the Municipal Code, was included (Condition No. 21). Chapter 13.08 — Underground Utility Installations Procedure — is attached for your reference. As part of the original application, the applicant requested a waiver of the undergrounding requirement. The request was denied, although the Council allowed for poles servicing other properties to remain above ground. However, utility service from the latter poles to the subject residences was to be place underground. This resulted in three utility poles needing to be removed. Since the project was approved, formerly vacant land across Fig Court to the south has been developed with the Pacific View Estates, a 49-unit single-family development now entering its final phase of construction. As part of the utility design for this project, all utilities on the Fig Court side of this project were placed underground to the westerly two poles in front of the subject duplexes. As part of this process, a shorter `sub -pole' was placed adjacent to the westernmost utility pole and a transformer placed upon the pole. As part of the approved subdivision, the applicant agreed to upgrade the properties. Upgrades included new kitchen and bathroom fixtures and cabinets, fencing, a brow ditch behind the properties for drainage, individual appliances for each unit (as opposed to the original shared laundry facility), and general repairs as needed. Half of the units have since been completely rehabilitated, with the other ten units, the fencing, brow ditch and undergrounding yet to be undertaken. All of the general repairs that were called out in the physical elements report submitted with the original application have been completed. Proposal The applicant requests to modify the Conditions of Approval for the approved Tentative Subdivision Map Resolution (No. 2007-98) to waive the requirement to underground the existing utilities and remove the power poles. The specific condition states: 3 21 _AII utility distribution facilities within the boundaries of the subdivision, and within the half street abutting the new subdivision, shall be placed underground, with the exception of the poles to remain that service properties outside of the subdivision; the utility service from said poles to properties within the subdivision is to be placed underground. No other changes to the approved Tentative Subdivision Map are requested or proposed. Analysis The applicant has submitted a letter (attachment No. 6) requesting the waiver of the condition to underground utilities. In this letter, the applicant states that the total cost of upgrades, including the undergrounding would be $996,788. Without the undergrounding the cost would be $699,536 — a difference of $297,252. The appraised value of the existing rental property (one lot with ten duplexes upon it), is $2,100,000. As ten individual properties with all improvements completed, including undergrounding, the appraised value would be $1,950,000 — a difference of $150,000 to the detriment of the property owner. Presumably, the value would be lesser still without the utilities placed underground. Even with the reduction in value of the property when split, the applicant is still willing to undergo the subdivision process in order to have the ability to sell the duplexes individually. However, without the waiver the applicant has stated that they would not be able to continue with the process. In this case, the units would remain as rentals and the ten units not already rehabbed would not receive the additional upgrades. Affordability The applicant has stated that granting of a waiver of the undergrounding requirement will allow them to complete all of the remaining upgrades to the property and record the final map. Additionally, the properties could then be offered at an affordable price, consistent with the City's affordable housing policies. The availability of the individual duplexes for sale will also provide for additional home -ownership opportunities for National City residents. Based on data provided by the U.S. Department of Housing and Urban Development (HUD), affordable housing for a low-income family (household earning up to 80 percent of San Diego area median income) (AMI), would be a home priced under $225,000. Based on this information, the sale price of $195,000 would be considered affordable. Furthermore, half of the duplex would be rented out, providing for additional revenue for the potential owner. With the exception of the deleted Condition of Approval as discussed above, all original Conditions of Approval are still in effect. The original Resolution is included as an attachment. 4 The current approval expires on April 16, 2012 with up to three additional years available if approved by City Council. Summary The completed subdivision of the subject property will result in a quality project that meets several of the City's housing policies and goals. In addition, the potential affordability of the duplexes will help to provide additional home -ownership opportunities as well as expanded rental opportunities for both owners of the units and their prospective renters. Furthermore, due to only three out of the five utility poles needing to be removed, whatever aesthetic value may be achieved by this partial utility undergrounding would be compromised by the utility poles that remain; this would result in a disjointed appearance to the street. RECOMMENDATION Recommend approval of 2010-36 M based on attached findings; or ATTACHMENTS 1. Recommended Findings for Approval 2. Recommended Conditions of Approval 3. City Council Resolution No. 2007-98 4. Location Map 5. National City Municipal Code Chapter 13.08 — Underground Utility Installations Procedure 6 Request for waiver of undergrounding of utilities requirement MARTIN REEDER Assistant Planner Development Services Director 5 RECOMMENDED FINDINGS FOR APPROVAL OF THE TENTATIVE SUBDIVISION MAP MODIFICATION 1 That granting a waiver of the underground utility requirement will allow for the properties to be offered at an affordable price, consistent with the City's affordable housing policies. That the resultant affordability of the homes due to granting of the waiver will provide additional home -ownership opportunities for National City residents, consistent with City policy. 3. That whatever aesthetic value that may be achieved by partial utility undergrounding would be compromised by utility poles which are to remain, thus creating a fragmented appearance of the areas infrastructure. 4. That granting of the waiver will allow for additional upgrades to the properties that would be not be made with the added expense of undergrounding utilities, thus improving the quality of housing stock in the area consistent with City policy. 6 RECOMMENDED CONDITIONS OF APPROVAL 1. This Tentative Subdivision Map modification authorizes the deletion of Condition number 21 contained in City Council Resolution 2007-98. Unless specifically modified by this resolution, all previous Conditions of Approval as stated in City Council Resolution 2007-98 are still in effect. Except as required by Conditions of Approval, all plans submitted for permits associated with this project shall conform with Exhibits A, 2` d Revision, Case File No. S-2006-12, dated 12/6/2006. 2. Before this Tentative Subdivision Map modification shall become effective, the applicant and the property owner both shall sign and have notarized an Acceptance Form, provided by the Planning Department, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Tentative Subdivision Map modification. The applicant shall also submit evidence to the satisfaction of the Development Services Director that a Notice of Restriction on Real Property is recorded with the County Recorder. The applicant shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Tentative Subdivision Map modification are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to form by the City Attomey and signed by the Development Services Director prior to recordation. 3. Approval of the Tentative Subdivision Map approved for this property expires on April 16, 2012 at 5:00 p.m. unless prior to that date a request for a time extension not exceeding three (3) years has been filed as provided by National City Municipal Code §17.04.070. RESOLUTION NO. 2007 — 98 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A TENTATIVE SUBDIVISION MAP TO DIVIDE A 1.41-ACRE LOT INTO TEN AT THE SITE OF TEN EXISTING DUPLEXES AT 1205-1243 FIG COURT, AND PARTIALLY GRANTING THE REQUEST TO WAIVE THE UTILITY UNDERGROUNDING REQUIREMENT APPLICANT: ROBERT GULOTTA CASE FILE NO. S-2006-12 WHEREAS, application was made for approval of a Tentative Subdivision Map to Divide a 1.41-Acre Lot into Ten at the Site of Ten Existing Duplexes at 1205-1243 Fig Court, and to Waive the Utility Undergrounding Requirement on property generally described as: Lot 34 of Scott Terrace, in the City of National City, County of San Diego, State of California, according to Map thereof No. 3153, filed in the Office of the County Recorder of San Diego County, November 4, 1954. WHEREAS, the Planning Commission considered said application at a duly advertised public hearing held on April 2, 2007, at which time the Planning Commission considered oral and documentary evidence, and recommended approval of the project, and denial of the request to waive the utility undergrounding requirement; and WHEREAS, the City Council considered said applications at a public hearing held on May 1, 2007, at which time oral and documentary evidence was presented; and WHEREAS, at said public hearing the City Council considered the staff report prepared for Case File No. S-2006-12, which is maintained by the City, and incorporated herein by reference; along with evidence and testimony at said hearing; and WHEREAS, this action is taken pursuant to all applicable procedures required by State and City law; and WHEREAS, the action recited herein is found to be essential for the preservation of public health, safety and general welfare. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves the Tentative Subdivision Map to Divide A 1.41-Acre Lot Into Ten at the Site of Ten Existing Duplexes at 1205-1243 Fig Court, and grants in part the Request to Waive the Utility Undergrounding Requirement, based on the following findings: TENTATIVE SUBDIVISION MAP 1. The proposed map is consistent with the National City General Plan and applicable specific plans, since the proposal will result in increased property valuation while increasing the likelihood of adequate property conservation, and since there are no applicable specific plans. 2. The site is physically suitable for the proposed type of development, since no development is proposed; only a change of ownership of existing development will take place. 8 Resolution No. 2007 — 98 May 15, 2007 Page 2 3. The site is physically suitable for the proposed density of development, since no development is proposed; only a change of ownership of existing development will take place. 4. The design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat, since no development is proposed; only a change of ownership of existing development will take place. 5. The design of the subdivision and the proposed/required improvements are not likely to cause serious public health problems, since all necessary public services will continue to be provided. 6. The design of the subdivision and the proposed/required improvements will not conflict with easements, acquired by the public at large, for access through or use of the property within the proposed subdivision, since no such easements are located on the site. 7. The discharge of sewerage waste from the subdivision into the City of National City sewer system will not result in violation of existing requirements prescribed by the Califomia Regional Quality Control Board pursuant to Division 7 (commencing with Section 13000) of the Water Code, as specified by Government Code Section 66474.6. PARTIAL WAIVER OF UTILITY UNDERGROUNDING REQUIREMENT 1. To require undergrounding of the poles servicing properties outside of the subdivision would be economically detrimental to the owners, and would pose an economic hardship on potential new owners. BE IT FURTHER RESOLVED that based on the findings hereinbefore stated, said Tentative Subdivision Map to Divide a 1.41-Acre Lot into Ten at the Site of Ten Existing Duplexes at 1205-1243 Fig Court, is hereby approved subject to the following conditions: 1. This Tentative Subdivision Map authorizes the division of one parcel into ten individual lots, each containing an existing duplex. Except as required by conditions of approval, ail plans submitted for permits associated with the project shall conform with Exhibits A, 2id Revision, Case File No. S-2006-12, dated December 6, 2006. 2. A Landscape and automatic Irrigation Plan shall be submitted for the entire property. The plan shall indicate plant species and sizes to replace or fill in areas where there is dead and decaying plant material or missing landscaping (Le., the rear slope, areas adjacent to the sides of each building, existing paved areas not part of the required two parking spaces per unit and front yard landscaped areas including the embankment in front of 1205-1207 Fig Court). The plan shall also show the relocation of the fencing to include the entire rear property area not currently fenced. The Irrigation Plan shall indicate an automatic irrigation system for each unit, location of irrigation heads and lines, and identify additional irrigation provided in areas that are not watered or where sprinkler heads are damaged. All trash receptacles shall be stored behind the fence and away from public view. 9 Resolution No. 2007 — 98 May 15, 2007 Page 3 4. Prior to recordation of the final map, the applicant shall submit a Lien Contract and Agreement not to Convey subject to review and approval by the City Attorney. The Lien Contract and Agreement shall limit the ability to convey each lot until the interior and exterior improvements have been completed for that lot 5. All recommended immediate, short-term and intermediate repairs as stated in Physical Elements Report pages 5 and 6 shall be completed in addition to all interior and exterior repairs and/or improvements, as mentioned in the letter from Lloyd Holt, RCE dated December 4, 2006, prior to release of each unit, except that all units shall receive improvements as stated rather than as needed. Construction plans submitted for approval shall reflect the addition of a washer/dryer unit as shown in the application. All improvements shalt be subject to building department permits, as applicable. 6. Prior to Final Map approval or the conveyance of each unit, the applicant shall submit a completed Termite Inspection Report that indicates the remediation for each unit is complete. 7. Prior to Final Map approval, the applicant shall submit a phasing plan showing the phasing of improvements that affect all of the units and how the improvements will be completed for each unit. The approved phasing plan shall be submitted with the building permits. 8. The developer shall provide a declaration of Covenants, Conditions and Restrictions, running with the land, ensuring the maintenance and upkeep of landscape and irrigation, and continued property management, prior to approval of the final map. The CC&Rs shall include a clause prohibiting the storage of abandoned or inoperable vehicles upon the properties. Said CC&Rs shall be subject to approval as to content and form by the City Attorney. 9. The project is to be designed, developed and constructed in compliance with the California Fire Code (CFC) 2001 edition and the most current National Fire Protection Association (NFPA) Standards as adopted by the City of National City. 10. Plans must comply with the 2001 editions of the Califomia Building Code, the California Mechanical Code, the California Plumbing Code, the California Electrical Code, and Califomia Title 24 energy and handicapped regulations. 11. The Homeowners Association and/or property owner shall be required to maintain repair, or reconstruct of all irrigation and landscaping improvements installed within the public right-of-way. Sprinkler heads shall be adjusted so as to prevent overspray upon the public sidewalk or the street. The proposed sprinkler heads shall be installed behind the sidewalk, and the irrigation mainline upon private property only, as required by the City. The Homeowners Association and/or the property owner or, its successors or assigns, shall remove and relocate all irrigation items from the public right-of-way at no cost to the City, and within a reasonable time frame upon a written notification by the City Engineer. 10 Resolution No. 2007 — 98 May 15, 2007 Page 4 12. The priority Project Applicability checklist for the Standard Urban Stormwater Mitigation Plan (SUSMP) is required to be completed and submitted to the Engineering Department. The checklist will be required when a project site is submitted for review of the City Departments. The checklist is available at the Engineering Department. If it is determined that the project is subject to the `Priority Project Permanent Storm Water BMP Requirements" and the City of National City Storm Water Best Management Practices of the Jurisdictional Urban Runoff Management Program (JURMP) an approved SUSMP will be required prior to issuance of an applicable engineering permit. The SUSMP shall be prepared by a Registered Civil Engineer. 13. The deteriorated portions of the existing street improvements (75' of sidewalk and 100' driveway) property frontages shall be removed and replaced. 14. A permit shall be obtained from the Engineering Department for all improvement work within the public right-of-way. 15. A title report shall be submitted to the Engineering Department, after the Planning Commission approval, for review of all existing easements and the ownership at the property. 16. A cost estimate for all of the proposed grading, drainage, street improvements, landscaping and retaining wall work shall be submitted with the plans. A performance bond equal to the approved cost estimate shall be posted. Three percent (3%) of the estimated cost shall also be deposited with the City as an initial cost for plan checking and inspection services at the time the plans are submitted. The deposit is subject to adjustment according to actual worked hours and consultant services. 17. The final map shall meet all of the requirements of the Subdivision Map Act, and the City of National City Municipal Codes, including certification, acknowledgement, complete boundary information and monumentation. 18. The developer shall submit to the Fire Department a letter from Sweetwater Authority stating existing fire flow. If determined by the Fire Department that additional improvements are needed, the developer shall enter into an agreement for the water improvements with the Sweetwater Authority prior to obtaining the final map approval. 19. Separate water and sewer laterals shall be provided to each lot/parcel. 20. The developer shall bond for the monumentation, the pubic improvements and the on - site grading, drainage, landscaping, and other improvements through an agreement with the City prior to the approval of the final map. 21. All utility distribution facilities within the boundaries of the subdivision, and within the half street abutting the new subdivision, shall be placed underground, with the exception of the poles to remain that service properties outside of the subdivision; the utility service from said poles to properties within the subdivision is to be placed underground. 22.. The final map shall be recorded prior to issuance of any building permit. 11 Resolution No. 2007 — 98 May 15, 2007 Page 5 23. All new property line survey monuments shall be set on private property, unless otherwise approved. 24. The final map shall use the California Coordinate System for its "Basis of Bearings" and express all measured and calculated bearings in terms of the system. The angle of grid divergence from a true meridian and the north point shall appear on the map. Two measured ties from the boundary of the property to existing horizontal control stations shall be shown. 25. The Police Department recommends that final approval of the development project should include provisions for the project to comply with crime free multi -housing criteria and crime prevention through environmental design standards. 26. Television cable companies shall be notified a minimum of 48 hours prior to filling of cable trenches. 27. The property owner shall submit a letter to the Sweetwater Authority stating fire flow requirements. The owner shall enter into an agreement with the Authority for any water facility improvements required for the proposed project. 28. Within four (4) days of approval, pursuant to Fish and Game Code 711.4 and the California Code of Regulations, Title 14, Section 753.5, the applicant shall pay all necessary environmental filing fees for the San Diego County Clerk. Checks shall be made payable to the County Clerk and submitted to the National City Planning Department. At this time, the filing fee is $50 for a Notice of Exemption or Notice of Determination, $1,800 for a Negative Declaration or Mitigated Negative Dedaration, and $2,500 for an Environmental Impact Report. 29_ Before this Tentative Subdivision Map shall become effective, the applicant and the property owner both shall sign and have notarized an Acceptance Form, provided by the Planning Department, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to retum the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Tentative Subdivision Map. The applicant shall also submit evidence to the satisfaction of the Planning Director that a Notice of. Restriction on Real Property is recorded with the County Recorder. The applicant shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Tentative Subdivision Map are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to form by the City Attorney, and signed by the Planning Director prior to recordation. 30. Approval of the tentative map expires two (2) years after adoption of the resolution of approval at 5:00 p.m., unless prior to that date a request for a time extension not exceeding three (3) years has been filed as provided by National City Municipal Code Section 17.04.070. BE IT FURTHER RESOLVED that copies of this Resolution shall be transmitted forthwith to the applicant. 12 Resolution No. 2007 — 98 May 15, 2007 Page 6 BE IT FURTHER RESOLVED that this Resolution shall become effective and final on the day following the City Council meeting where the resolution is adopted. The time within which judicial review of this decision may be sought is governed by the provisions of Code of Civil Procedure Section 1094.6. PASSED and ADOPTED this 15th day of May, 200 ATTEST: F oP, Michael Dalla, City Clerk APPROVED AS TO FORM: George H. Eiser, Ill City Attorney Morrison, Mayor 13 Passed and adopted by the Council of the City of National City, California, on May 15, 2007 by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Parra, Ungab, Zarate. Nays: None. Absent: None. Abstain- None. AUTHENTICATED BY: RON MORRISON By: Mayor of the City of National City, California MICHAEL R_ DALLA City Clerk of the City of National City, California Deputy 1 HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2007-98 of the City of National City, California, passed and adopted by the Council of said City on May 15, 2007. City erk of the City of National City, California By: Deputy 14 15 13.08.010 Chapter 13.08 UNDERGROUND UTILITY INSTALLATIONS PROCEDURE Sections: 1. Subdivision and Redevelopment Requirements 13.08.010 Definitions. 13.08.020 Subdivision —Installation. 13.08.030 Multiple dwelling Commercial —Industrial Installation. 13.08.040 Redevelopment —Installation. 13.08.050 Applicability Exceptions. 11. 13.08.060 13.08.070 13.08.080 13.08.090 13.08.100 13.08.110 13.08.120 13.08.130 13.08.140 13.08. 1 50 13.08.160 13.08.170 13.08.180 13.08.190 13.08.200 13.08.210 Installation Specifications Title. Construction of article. Purpose and intent. Definitions. Exceptions. Public hearing by council. Notice of hearing. Districts designated by resolution. Unlawful acts. Exception for emergency service. Notification of affected persons and utilities. Responsibility of utility companies. Responsibility, of properly owners. Noncompliance Discontinuance of overhead service. Responsibility of city. Extension of time. I. Subdivision and Redevelopment Requirements 13.08.010 Definitions. "Redevelopment" refers to planning, development. redesign, etc., of all or part of lands of five acres in area, based on general welfare, and may include re- habilitation of existing structures, open space type uses (streets, parks, recreation areas, etc.), develop- ment of undeveloped areas which are either stagnant due to faulty street and lot layout or need replanning and land assembly due to scattered ownership or tax delinquency, but does not exclude continuance of existing structures. "Subdivision" refers to improved or unimproved land or lands divided or proposed to be divided, for the purpose of sale or lease or financing, whether immediate or future, into five or more lots or parcels, and condominium projects of five condominiums or more and community apartment projects of five par- cels or more as defined in Section 11535.1 of the Subdivision Map Act of the state, whether such pro- jects arc new or are conversions from other forms of ownership. (Ord_ 1506 § 2, 1976; Ord. 1181 § 2, 1967) 441 13.08.020 Subdivision --installation. In conjunction with the approval of all subdivi- sions, the following shall be required: A. Underground Utilities. Ali existing or pro- posed electrical, telephone or similar distribution util- ity facilities shall be placed underground_ Transform- ers, terminal boxes, meter cabinets. pedestals, con- cealed ducts and other facilities necessarily pertinent to such underground utilities or any required street lighting system may be placed above ground. All water distribution and sewer collection facili- ties shall be installed in conformance with the speci- fications of the city. 13. Ornamental Street Lighting. Ornamental street lighting may be required in all locations and design as approved by the city council, upon recom- mendation of the planning commission. All such lighting on streets to be offered for dedication shall be electric. Nal kola! Cif v StippNo. 16_ 5-06 16 13.08.020 C. Fire Alarm Boxes. Provisions shall be made with the city for the installation of fire alarm boxes and wiring for same, in accordance with the fire alarm system of the city. D. Responsibility. The subdivider shall be re- sponsible for complying with the requirements of this section and shall make all the necessary arrange- ments with each of the serving utility companies and the city for the installation of all required facilities. (Ord. 2283, 2006: Ord. 1181 § 3, 1967) 13.08.030 Multiple dwelling —Commercial — Industrial —installation. Within the boundary lines of all property upon which is constructed or moved in a multiple -family dwelling of five units or more, a commercial, manu- facturingor industrial structure, the following condi- tions on installation of public utility facilities shall be required: A. Underground Utilities_ All electrical tele- phone and similar distribution service wires shall be placed underground. Transformers, terminal boxes, meter cabinets, pedestals, concealed ducts and other facilities necessarily pertinent to such underground facilities may be placed above ground. All sewer collection and water distribution facili- ties shall be installed in conformance with specifica- tions of the city. B. Responsibility. The property owner is re- sponsible for complying with the requirements of this section and shall make all the necessary arrange- ments for the installation of such facilities with each of the serving utility companies and the city. C. Existing Utilities and Structures. This section shall not apply to existing utilities, existing struc- tures. nor to the alteration, extension or enlargement of an existing structure. (Ord. 1181 § 4, 1967) 13.08.040 Redevelopment —Installation. Within the exterior boundary lines of all property and within the half of all streets bounding a redevel- opment project, publicly or privately controlled. of five acres or more, the following conditions shall be required: (National City Stipp. No. I G, 5-06I A. Underground Utilities. All existing utility facilities within the exterior boundary line of the re- development project and within the half of all streets bounding the redevelopment project shall be relo- cated and installed underground. All electrical, telephone and similar distribution utility facilities to be installed within the exterior boundary lines and within the half of all streets bounding the redevelopment project shall be placed underground. All water distribution and sewer collection facili- ties shall be installed in conformance with specifica- tions of the city. Transformers, terminal boxes, meter cabinets, pedestals, concealed ducts and other facilities neces- sarily pertinent to such underground utilities or any required street lighting system maybe placed above ground. B. Ornamental Street Lighting_ Ornamental street lighting shall be required in all locations and design as approved by the city council, upon recom- mendation of the planning commission. Ali such lighting on streets dedicated or to be offered for dedi- cation shall be electric. C_ Television and Radio Antennas or Cables. Television and radio reception shall be provided by concealed antennas or by an underground or other concealed cable and one central antenna. D. Fire Alarm Boxes. Provisions shall be made with the city for the installation of fire alarm boxes and wiring the same, in accordance with the fire alarm system of the city. E. Responsibility. The property owner and/or developer shall be responsible for complying with the requirements of this section and shall make all the necessary arrangements with each of the serving 442 17 13.08.040 utility companies and the city for the installation of all required facilities. (Ord. 1181 §5, 1967) 13.08.050 Applicability —Exceptions. The provisions of Sections 13.08.010 through 13.08.1340 shall not apply to the installation or main- tenance of overhead electric transmission lines and overhead communication long distance trunk and feeder lines. If the planning commission finds that exceptional circumstances or conditions apply to any portion of a proposed development as outlined in Sections 13.08.010 through 13.08.040 and the re- quirement of the installation of any of the improve- ments required herein would be impractical or un- reasonable because of the topography, soil, excep- tional drainage conditions or other condition, or it is not economically feasible to install the required installation, the city council, upon recommendation of the planning commission may grant specific modifications or waivers of the improvement re- quired. (Ord_ 1181 § 6, 1967) II. Installation Specifications 13.08.060 Title. This article may be cited as the. "National City underground utilities procedural ordinance." (Ord_ 1414 § I, 1974) 13.08.070 Construction of article. This article shall be liberally construed in order to effectuate its purposes, and no error, irregularity, or informality, and no neglect or omission of any officer in any procedure taken under this article which does not directly affect the jurisdiction of the council to order the work and improvement shall avoid or invalidate such proceeding. (Ord. 1414 § 2, 1974) 13.08.080 Purpose and intent. It is the purpose and intent of this article to pro- vide for the creation of underground utility districts in the city in which poles, overhead wires and asso- ciated overhead structures, as hereinafter defined, shall not be permitted. (Ord. 1414 § 3, 1974) 443 13.08.090 Definitions. Whenever in this article the following words or phrases are used, they shall mean: A. "City" means the city of National City, a municipal corporation in the state of California. B. "Commission" means the Public Utilities Commission of the state of California. C. "Council" means the city council of the city. D. "Underground utility district" or "district" means that area in the city within which poles, overhead wires and associated overhead structures are prohibited as such area as described in a resolu- tion or resolutions adopted pursuant to the provi- sions of Section 13.08.130. E. "Poles, overhead wires and associated over- head structures" means poles, towers, supports, wires, cables, conductors, guys, stubs, platforms, crossarms, braces, transformers, insulators, cutouts, switches, communication circuits, appliances, attach- ments and appurtenances located above ground upon, along, across or over the streets, alleys and ways of the city and used or usable in supplying electric, communication, community antenna televi- sion or similar or associate service. F. "Utility company" means and includes all persons and entities supplying electric, communica- tion, community antenna television or similar or associated service. G. "Affected persons" means the owners of real property located within the district, or proposed district, as shown on the last equalized San Diego County assessment roll and each occupant of real property located within the district or proposed district. (Ord. 1414 § 4, 1974) 13.08.100 Exceptions. Unless otherwise provided in the resolution creat- ing the district, this article and any resolution adopt- ed pursuant thereto shall not apply to the following types of facilities: A. Poles, and associated overhead structures, used exclusively for street lighting or signalization; B. Overhead wires (exclusive of supporting structures) connecting to buildings on the perimeter of a district when such wires originate in an area 18 13.08.100 from which poles, overhead wires and associated overhead structures are not prohibited; C. Overhead wires attached to the exterior sur- face of a building by means of a bracket or other fixture and extending from one location on the building to another location on the same building or to an adjacent building without crossing any public street; D. Electric transmission lines of sixty thousand volts phase -to -phase and above; E. Radio antennae, associated equipment and supporting structures for such antennae, used by a utility company for furnishing communication ser- vices; F. Pad mounted transformers, junction boxes and service terminals on pedestals above ground used to distribute electrical, communication and community antenna television or similar or associated service, in the underground systems; G. Temporary poles, overhead wires and associ- ated overhead structures located on private property, used solely during the course of construction on that private property; H. Overhead wires to provide temporary or emergency service installed subject to the provisions of Section 13.08.150; I. New or existing pole to anchor guy wires within the district necessary to support overhead facilities outside the boundary of the district or poles within the district which have been specifically excepted in the resolution creating the district. (Ord. 1414§5,1974) 13.08.110 Public hearing by council. By appropriate resolution the council may from time to time call public hearings to ascertain wheth- er the public health, safety or general welfare re- quires the removal of poles, overhead wires and associated overhead structures within the designated areas of the city and the underground installation of wires and facilities for supplying electric, communi- cation, community antenna television or similar or associated service. Each hearing shall be open to the public and may be continued from time to time. At each hearing all persons interested shall be given an opportunity to be heard. The decision of the council shall be final and conclusive. (Ord. 1414 § 6, 1974) 444 13.08.120 Notice of hearing. A. The city clerk shall notify all affected persons and each utility company concerned of the time and place of the hearings at least fifteen days prior to the date thereof. B. Notices given under this section may be given either by personal service or by mail. In case of service by mail, each notice must be deposited in the United States mail in a sealed envelope with postage prepaid. Each notice to an owner of real property in a district, or proposed district, shall be addressed as such owner's name appears, and at the address listed for such owner, on the Last equalized assessment roll of the county of San Diego. Each notice to an occupant of real property in any district, or proposed district, shall be addressed to occupant at the street address or addresses located on the real property. Notice given by mail shall be deemed to have been received by the person to whom it has been sent within forty-eight hours after the mailing thereof. C. The city clerk shall cause the resolution call- ing a public hearing as set forth in Section 13.08.110 to be published in a newspaper of general circulation as defined in Section 6000 of the Califor- nia Government Code. Publication of the resolution shall be for one time, not less than five days prior to the date of the public hearing stated in the resolu- tion. (Ord. 1414 § 7, 1974) 13.08.130 Districts designated by resolution. If, after the public hearing, the council finds that the public health, safety or general welfare requires removal of poles, overhead wires and associated overhead structures and underground installation of wires and facilities for supplying electric, communi- cation, community antenna television or similar or associated service within a designated area, the council shall, by resolution declare the designated area an underground utility district and order the removal and underground installation. Immediately following its adoption, the city clerk shall cause a 19 13.08.130 certified copy of the resolution to be recorded in the office of the county recorder. The resolution shall include a description and map of the area compris- ing the district. It shall also provide that the council shall by subsequent resolution fix the time within which: A. Property in the district must be ready to re- ceive underground service; and B. Poles, overhead wires and associated over- head structures shall be removed. A reasonable time shall be allowed for removal and underground installation, having due regard for the availability of labor; materials and equipment necessary for such removal and for the installation of such underground facilities as may be occasioned thereby. (Ord. 1414 § 8, 1974) 13.08.140 Unlawful acts. Whenever the council creates an underground utility district and orders the removal of poles, over- head wires and associated overhead structures there- in as provided in Section 13.08.130, it shall be unlawful for any person or utility company to erect, construct, place, keep, maintain, continue, own, employ or operate poles, overhead wires and associ- ated overhead structures in the district on and after the date when overhead facilities are required to be removed by the resolution, except as otherwise provided in this article_ Commencing upon the date when the overhead facilities are required to be re- moved, the continued existence, presence or mainte- nance of poles, overhead wires and associated over- head structures in the district shall be and the same is declared to be contrary to the health, safety and general welfare of the public and unlawful, and the same may be abated summarily or as otherwise provided by taw. (Ord. 1414 § 9, 1974) 13.08.150 Exception for emergency service. Notwithstanding the provisions of this article, overhead facilities may be installed and maintained for a period not to exceed thirty days, without au- thority of the council, in order to provide emergency service. The council may grant special permission, on such terms and for such durations as the council 445 may deem appropriate, in cases of unusual circum- stances, and where not detrimental to the public health, safety and general welfare and without dis- crimination as to any person or utility company, to erect, construct, install, maintain, use or operate poles, overhead wires and associated overhead struc- tures within the district. (Ord. 1414 § 10, 1974) 13.08.160 Notification of affected persons and utilities. A. Within fifteen days after the effective date of a resolution adopted pursuant to Section 13.08.130, the city clerk shall notify all affected utility compa- nies and all affected persons of the provisions of the resolution. The city clerk specifically shall notify the affected persons that if they desire to continue to receive electric, communication, community antenna television or similar or associated service, they shall provide, at their own expense, all necessary facility changes on their premises so as to receive under- ground service from the lines relocated underground of the supplying utility company subject to applica- ble rules, regulations and tariffs of the respective utility company on file with the Commission and to all other applicable requirements of state laws and city ordinances. B. Within fifteen days of adoption by the coun- cil of the resolution fixing the time within which conversions on private property and pole removal must be accomplished, the city clerk shall further notify all affected utilities and affected persons that the work required to change the facilities on the premises so as to receive electric, communication, or community antenna television or similar or asso- ciated service provided or to be provided by the utility company shall be accomplished on or before the applicable date set forth in the resolution. This notice shall also state the date all poles and related overhead structures are to be removed from within the district. C_ Notices given under this section may be given either by personal service or by mail and in accordance with the provisions of Section 13.08.120. D. Within fifteen days of adoption of the resolu- tion fixing the conversion and pole removal times 20 13.08.160 of the district, the city manager shall cause copies of the notice, printed on a card not less than eight inches by ten inches in size and headed "Notice of Pole Removal" in letters of not less than one inch in height, to be posted conspicuously on every pole to be removed within the district. (Ord. 1414 § 11, 1974) 13.08.170 Responsibility of utility companies. If underground construction is necessary to pro- vide utility service within a district created by any resolution adopted pursuant to Section 13.08.130, any utility company engaging in such underground construction shall furnish that portion of the con- duits, conductors and associated equipment required to be fumished by it under the applicable orders, rules, regulations and tariffs on file with the Com- mission. (Ord. 1414 § 12, 1974) 13.08.180 Responsibility of property owners. The owner or owners of real property within a district shall be obligated to and shall be responsible for the commencement and completion of work as may be necessary to provide for the continuance of electric, communication, community antenna televi- sion or similar or associated service to the premises between the facilities referred to in Section 13.08.170 and the termination of service connection facilities on or within the building or structure being serviced, all in accordance with applicable orders, rules, regulations and tariffs of the respective utility companies on file with the Commission as of the effective date of the resolution creating the district, and in accordance with the applicable requirements of state laws and city ordinances. (Ord. 1414 § 13, 1974) 13.08.190 Noncompliance —Discontinuance of overhead service. A. In the event the owner or owners of real pro- perty within a district do not comply with the provi- sions of Section 13.08.180 within the time provided for in the resolution enacted pursuant to Section 13.08.130, the respective utility companies con- 446 cerned shall advise the city manager in writing of the location of such property and thereupon the city manager shall cause to be posted on such property a written notice on the property being served. B. The notice required by subsection A of this section shall include the statement that thirty days after posting of the notice all utility companies are authorized to discontinue electric, communication, community antenna television or similar or associat- ed service from poles, overhead wires and associat- ed overhead structures. C. Thirty days after such posting, all utility com- panies are authorized to discontinue electric, com- munication, community antenna television or similar or associated service from poles, overhead wires, and associated overhead structures. (Ord. 1414 § 14, 1974) 13.08.200 Responsibility of city. The city shall remove at its own expense all city - owned equipment from all poles, overhead wires and associated overhead structures required to be removed hereunder in ample time to enable the owner of the poles, overhead wires and associated overhead structures to remove them within the time specified in the resolution enacted pursuant to Sec- tion 13.08.130. (Ord. 1414 § 15, 1974) 13.08.210 Extension of time. In the event that any act required by this article or by a resolution adopted pursuant to Section 13.08.130 cannot be performed within the time provided on account of shortage of materials, war, restraint by public authorities, strikes, labor distur- bances, civil disobedience or any other circumstanc- es beyond the control of the actor, then the time within which such act will be accomplished shall be extended for a period equivalent to the time of such limitation. (Ord. 1414 § 16, 1974) 21 ROBERT GULOTTA REAL ESTATE BROKER irf 1114 Idaho Avenue (760)390-2301 TEL Escondido, CA 92027 (760)743-7666 FAX November 30, 2010 City of National City Attn: Mr_ Martin Reeder, Assistant Planner 1243 National City Blvd. National City, CA 91950 Re: The Fig Court Subdivision Dear Mr. Reeder The purpose of this letter is to request a waiver of the underground utility requirement of my subdivision application. My hope is that our project can be completed and will contribute to the achievement of two of National City's important community goals: Provide affordable housing and increase the homeownership share of city housing. All efforts, both public and private, must undergo a cost -benefit analysis. I believe that the Fig Court project will, on balance, provide more community benefits if offered as For -Sale affordable housing than if offered for rent. We want to complete this project, but to do so requires waiving the condition that utilities be placed underground. This waiver may be viewed from the City's perspective as a cost to the overall project but will be offset by the benefit of achieving important housing goals. The following data supports our request: • Cost to Underground the Electrical Service (including transformer) S297,252.00 • Cost to improve rear yards and drainage 40, 957.00 • Cost of hadscape and landscape 40,000.00 • Rehab of interiors @ $22,500 per unit 450, 000.00 • Engineering costs tentative & final map 25,000.00 • Final Map Fee 5,000,00 • Termite Work 24,250-00 • Tentative Map Fee 9,712 00 • Consultants Fees 9,000.00 • • Subtotal S906,171. 00 • Contingence Fund 10% 90,617.00 • • TOTAL EXPECTED EXPENSE WITH UNDERGROUND .S996,788.00 • • TOTAL EXPECTED EXPENSE W/O UNDERGROUND S699,536.00 22 Mr. Martin Reeder Page Two November 30, 2010 This substantial investment on our part will allow us to offer the parcels (each with a duplex) for sale for )5,000. Based on U.S. Department of Housing and Urban Development (HUD) definitions, affordable 'sing for a low-income family (household earning up to 80 percent of San Diego area median income) (AMI), would be a home priced under $225,000. Based on this information, the sale price of $195,000 would be considered to be affordable. It is our understanding that, pursuant to NC Ordinance NCMC 13.08.020, the waiver we request is within the purview of your discretion in implementing city housing and development policy. Also, not all utility poles presently installed are covered by this request. Hence, whatever aesthetic value may be achieved by imposing this requirement on our project would be compromised by poles which will remain under any circumstances. We have obtained market studies from two different sources (copies attached), which confirm that in the present depressed market our efforts to divide the property will result in marginal commercial benefit to the ownership. Gaylon Nixon & Associates concluded on July 7, 2010 that the individual duplexes on separate parcels will be worth $100,000 less than our projected sale price, $195,000 per duplex, a total of $1,950,000. Separately DWS Properties valued the current single parcel at $2,100,000. The clear decision, independent of benefits to the community, is to save approximately $340,000 by not placing the utilities underground. The consequence of this decision is that, regardless of the fact that the rentals may remain affordable, the project cannot contribute to the City's goal of increasing the percentage of home ownership as a component of affordable housing. The summary in the first page of this letter deals with cost. Below is a comparison of the cost to the benefits from an ownership standpoint: Price per unit Total value As rehabilitated rentals (not split into As Owner -occupied homes on individua individual parcels no underground utilities) parcels (with underground utilities) $975/mo $2,100,000 Cost Net $699,536 $1,400,464 $195,000 for -sale price $1,950,000 $996,788 $953,212 Notwithstanding disappointing news about the present market and the seemingly obvious conclusion to be made from the table of values above, with your assistance in granting this waiver, we are determined to finish the job we started. As you are aware, we are not in this for the short term, having owned and operated property in National City for more than two decades. The remaining 28 conditions with which we will comply will benefit the residents, the City of National City and our pride of ownership. We now appeal for your help to keep the project feasible. Please grant our request for a full waiver of the underground utilities in the interest of realizing considerable net benefits to the community. Sadly, should the request be denied, economics prevent us from moving forward and the property will remain a rental. 23 Mr. Martin Reeder Page Three November 30, 2010 It appears that, from a policy viewpoint, this decision hinges on the relative value of affordable home ownership vs. affordable rentals in the City. It is widely agreed that communities are more stable and cohesive when residents own their own homes. As a secondary, but important consideration, rational investors improve property for rentals very differently than they improve properties for sale. From a curb appeal perspective and the quality of interior work done, the housing stock of National City is improved further by our proposed subdivision and rehabilitation for sale. Since0._____)7,..„ Robetta Attachments: Appraisal dated 7/7/2010 from Gaylon Nixon & Associates; Opinion of market value from DWS Properties July 2010; Copy of Fig Court check book expenditures 2006-2010; Copies of contractor hid to support cost estimates. 24 ()BERT GULOTTA REAL ESTATE BROKER 1114 Idaho Avenue (760)390-2301 TEL Escondido, CA 92027 (760)743-7666 FAX November 30, 2010 City of National City Attn: Mr. Martin Reeder, Assistant Planner 1243 National City Blvd. National City, CA 91950 Re: The Fig Court Subdivision Dear Mr. Reeder The purpose of this letter is to request a waiver of the underground utility requirement of my subdivision ---)lication. My hope is that our project can be completed and will contribute to the achievement of two of tional City's important community goals: Provide affordable housing and increase the homeownership share of city housing. All efforts, both public and private, must undergo a cost -benefit analysis. 1 believe that the Fig Court project will, on balance, provide more community benefits if offered as For -Sale affordable housing than if offered for rent. We want to complete this project, but to do so requires waiving the condition that utilities be placed underground. This waiver may be viewed from the City's perspective as a cost to the overall project but will be offset by the benefit of achieving important housing goals. The following data supports our request: • Cost to Underground the Electrical Service (including transformer) $297,252.00 • Cost to improve rear yards and drainage 40, 957.00 • Cost of hardscape and landscape 40,000.00 • Rehab of interiors @ $22,500 per unit 450,000.00 • Engineering costs tentative & final map 25,000.00 • Final Map Fee 5,000.00 • Termite Work 24,250.00 • Tentative Map Fee 9, 712.00 • Consultants Fees 9,000.00 • • Subtotal $906,171.00 • Contingency Fund 10% 90,617.00 • • TOTAL EXPECTED EXPENSE WITH UNDERGROUND $996, 788.00 • • TOTAL EXPECTED EXPENSE W/O UNDERGROUND $699,536.00 25 Mr. Martin Reeder Page Two November 30, 2010 This substantial investment on our part will allow us to offer the parcels (each with a duplex) for sale for $195,000. Based on U.S. Department of Housing and Urban Development (HUD) definitions, affordable housing for a low-income family (household earning up to 80 percent of San Diego area median income) (AMI), would be a home priced under $225,000. Based on this information, the sale price of $195,000 would be considered to be affordable. It is our understanding that, pursuant to NC Ordinance NCMC 13.08.020, the waiver we request is within the purview of your discretion in implementing city housing and development policy. Also, not all utility poles presently installed are covered by this request. Hence, whatever aesthetic value may be achieved by imposing this requirement on our project would be compromised by poles which will remain under any circumstances. We have obtained market studies from two different sources (copies attached), which confirm that in the present depressed market our efforts to divide the property will result in marginal commercial benefit to the ownership. Gaylon Nixon & Associates concluded on July 7, 2010 that the individual duplexes on separate parcels will be worth $100,000 less than our projected sale price, $195,000 per duplex, a total of $1,950,000. Separately DWS Properties valued the current single parcel at $2,100,000. The clear decision, independent of benefits to the community, is to save approximately $340,000 by not placing the utilities underground. The consequence of this decision is that, regardless of the fact that the rentals may remain affordable, the project cannot contribute to the City's goal of increasing the percentage of home ownership as a component of affordable housing. The summary in the first page of this letter deals with cost. Below is a comparison of the cost to the benefits from an ownership standpoint: As rehabilitated rentals (not split into individual parcels no underground utilities) As Owner -occupied homes on individual parcels (with underground utilities) Price per unit $975/mo $195,000 for -sale price Total value $2,100,000 $1,950,000 Cost $699,536 $996,788 Net $1,400,464 8953,2 12 Notwithstanding disappointing news about the present market and the seemingly obvious conclusion to be made from the table of values above, with your assistance in granting this waiver, we arc determined to finish the job we started. As you are aware, we are not in this for the short term, having owned and operated property in National City for more than two decades. The remaining 28 conditions with which we will comply will benefit the residents, the City of National City and our pride of ownership. We now appeal for your help to keep the project feasible. Please grant our request for a full waiver of the underground utilities in the interest of realizing considerable net benefits to the community. Sadly, should the request be denied, economics prevent us from moving forward and the property will remain a rental. 26 Mr. Martin Reeder Page Three November 30, 2010 It appears that, from a policy viewpoint, this decision hinges on the relative value of affordable home ownership vs. affordable rentals in the City. It is widely agreed that communities are more stable and cohesive when residents own their own homes. As a secondary, but important consideration, rational investors improve property for rentals very differently than they improve properties for sale. From a curb appeal perspective and the quality of interior work done, the housing stock of National City is improved further by our proposed subdivision and rehabilitation for sale. SincereRobeulotta Attachments: Appraisal dated 7/7/2010 from Gaylon Nixon & Associates; Opinion of market value from DWS Properties July 2010; Copy of Fig Court check book expenditures 2006-2010; Copies of contractor bid to support cost estimates. 27 RESOLUTION NO. 2-2011 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA, RECOMMENDING APPROVAL OF A MODIFICATION OF A PREVIOUSLY APPROVED TENTATIVE SUBDIVISION MAP TO DELETE A CONDITION OF APPROVAL REQUIRING UTILITIES TO BE PLACED UNDERGROUND AT 1205-1243 FIG COURT. APPLICANT: ROBERT GULOTA. CASE FILE NO. 2010-36 M (S-2006-12) APN: 551-490-19 WHEREAS, application was made for approval of a modification of a previously approved Tentative Subdivision Map TO DELETE A CONDITION OF APPROVAL REQUIRING UTILITIES TO BE PLACED UNDERGROUND AT 1205-1243 FIG COURT and generally described as: Lot 34 of Scott Terrace, in the City of National City, County of San Diego, State of California, according to Map thereof No. 3153, filed in the Office of the County Recorder of San Diego County, November 4, 1954. WHEREAS, the Planning Commission of the City of National City, California, considered said applications at a duly advertised public hearing held on January 10, 2011, at which time the Planning Commission considered oral and documentary evidence; and, WHEREAS, at said public hearing the Planning Commission considered the staff report provided for Case File No. 2010-36 M (S-2006-12), which is maintained by the City and incorporated herein by reference; along with evidence and testimony at said hearing; and, WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law; and, WHEREAS, the action hereby taken is found to be essential for the preservation of the public health, safety and general welfare. NOW, THEREFORE, BE IT RESOLVED by the City Planning Commission of the City of National City, California, that the testimony and evidence presented to the Planning Commission at the public hearing held on January 10, 2011, support the following findings: 1. That granting a waiver of the underground utility requirement will allow for the properties to be offered at an affordable price, consistent with the City's affordable housing policies. 28 2. That the resultant affordability of the homes due to granting of the waiver will provide additional home -ownership opportunities for National City residents, consistent with City policy. 3. That whatever aesthetic value that may be achieved by partial utility undergrounding would be compromised by utility poles which are to remain, thus creating a fragmented appearance of the areas infrastructure. 4. That granting of the waiver will allow for additional upgrades to the properties that would be not be made with the added expense of undergrounding utilities, thus improving the quality of housing stock in the area consistent with City policy. BE IT FURTHER RESOLVED that based on the findings herein before stated, the Planning Commission hereby recommends approval of said modification of a previously approved Tentative Subdivision Map for the Centro / Revolution 2 Condominiums located at 41 East 12`h Street, subject to the following conditions: 1. This Tentative Subdivision Map modification authorizes the deletion of Condition number 21 contained in City Council Resolution 2007-98. Unless specifically modified by this resolution, all previous Conditions of Approval as stated in City Council Resolution 2007-98 are still in effect. Except as required by Conditions of Approval, all plans submitted for permits associated with this project shall conform with Exhibits A, 2nd Revision, Case File No. S-2006-12, dated 12/6/2006. 2. Before this Tentative Subdivision Map modification shall become effective, the applicant and the property owner both shall sign and have notarized an Acceptance Form, provided by the Planning Department, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Tentative Subdivision Map modification. The applicant shall also submit evidence to the satisfaction of the Development Services Director that a Notice of Restriction on Real Property is recorded with the County Recorder. The applicant shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Tentative Subdivision Map modification are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to form by the City Attorney and signed by the Development Services Director prior to recordation. 3. Approval of the Tentative Subdivision Map approved for this property expires on April 16, 2012 at 5:00 p.m. unless prior to that date a request for a time extension not exceeding three (3) years has been filed as provided by National City Municipal Code §17.04.070. BE IT FURTHER RESOLVED that copies of this Resolution be transmitted forthwith to the applicant and to the City Council. 29 CERTIFICATION: This certifies that the Resolution was adopted by the Planning Commission at their meeting of January 10, 2011, by the following vote: AYES: Der.aPaz, Farias, Alvarado, Baca, Pruitt, Reynolds, Flores NAYS: ABSENT: ABSTAIN: CHAIRMAN 30 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT STING DATE: January 25, 2011 AGENDA ITEM NO. 9 ITEM TITLE: Public Hearing — Downtown Specific Plan Amendment and Mitigated Negative Declaration. Case File. No. 2010-23 SPA IS Applicant: Library Village South, Inc. PREPARED BY: Raymond Pe PHONE: 336-4421 EXPLANATION: The applicant is requesting that the three half -blocks along the east side of Roosevelt Avenue between Civic Center Drive and 16th Street be added to the Downtown Specific Plan. The amendment would allow mixed uses including multi -family residential, retail, office, and hospitality uses with a maximum floor area ratio (FAR) of 4:1 and building height of 65-feet. The applicant proposes to develop 45 multi- family units on portions of the block between 15th and 16th Streets. The development proposal is not a part of this request, but would be subject to future review and approval under the Downtown Specific Plan consistency review process. DEPARTMENT: Communit Development APPROVED BY: The amendment/project description, project analysis, and environmental review are discussed in the ++ached background report. FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: A mitigated negative declaration has been prepared. ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adoption of the mitigated negative declaration and approval of the specific plan amendment. BOARD / COMMISSION RECOMMENDATION: On September 20, 2010, the Planning Commission voted to recommend adoption of the mitigated negative declaration and approval of the specific plan amendment. FACHMENTS: 1. Background Report 2. Planning Commission Resolution 3. Application 4. Mitigated Negative Declaration ATTACHMENT 1 BACKGROUND REPORT Specific Plan Amendment and Mitigated Negative Declaration 2010-23 SPA IS Amendment/Project Description The amendment would add approximately 3.69 acres to the Downtown Specific Plan and includes three half -blocks consisting of 13 parcels totaling approximately 1.95 acres. The area is currently zoned Light Manufacturing/Residential (MLR), which allows single family residential or low intensity industrial uses including Tight manufacturing, warehousing, and automotive uses. The amendment would allow mixed uses including mid -rise multi -family residential, street -oriented retail, office, and hospitality uses. The proposed development zone (DZ-12B) would allow a floor area ratio (FAR) of 4:1 and building height of 65-feet. The current MLR zone allows an FAR of 2:1 and a building height of 35-feet. The proposed development zone (DZ-12B) would be adjacent to the existing development zone (DZ-12) to the east, which allows for the same uses at a greater intensity (FAR 5:1 and 90-feet). Development zone (DZ-12) would be renamed development zone (DZ-12A) to differentiate it from development zone (DZ-12B). The proposed development zone (DZ-12B) would be adjacent to the Westside Specific Plan west of Roosevelt Avenue. The adjacent zones in the WSP are Mixed Use Commercial —Residential 1 and 2 (MCR-1 and MCR-2), which allow mixed uses including multi -family residential, retail and service commercial, and office uses up to a maximum FAR of 0.6:1. The MCR-1 zone allows a maximum height of 50-feet and 24 units per acre. The MCR-2 zone allows a maximum height of 65-feet and 45 units per acre. The amendment would apply to one of the few remaining areas zoned MLR and would create a common boundary between the Downtown and Westside Specific Plans. The MLR zone has been problematic since incompatible uses can occur when residential and industrial uses are located in close proximity without adequate buffering or operational controls. The MLR zone has been eliminated from the Westside Specific Plan. Project Analysis The proposed land use and development regulations for DZ-12B would create an appropriate transition between the existing DZ-12 (12A) to the east and the MCR-1 and MCR-2 zones to the west. Mixed use (emphasizing multi -family residential) would replace single-family/light industrial as permitted uses within the amendment area, which would be consistent with the mixed uses permitted in the adjacent zones. Maximum building heights would step down from east to west: 90-feet in DZ-12A, 65-feet in DZ-12B and MCR-2, and 50-feet in MCR-1. The maximum FAR in DZ-12B would be 20-percent Tess than DZ-12A. Page 1 of 4 i The potential development that could occur within DZ-12A and DZ-12B is discussed in the environmental checklist (initial study) prepared for the proposed amendment. The study illustrates one example of the building intensity that could occur if development is maximized in both zones along with the 45 units proposed by the applicant. The study shows that the proposed regulations for DZ-12B would result in an appropriate transition in scale from the Downtown Specific Plan to the Westside Specific Plan. The proposed land use and development regulations would be appropriate for the area. The adoption of the Downtown and Westside Specific Plans resulted in the three half - blocks remaining with MLR zoning that is incompatible with the land uses allowed in the two adjacent specific plans. The amendment would eliminate the planned land use incompatibility and allow future development to occur with an appropriate mix of uses relative to the two adopted specific plans. The amendment would be consistent with the General Plan and the Downtown Specific Plan, which encourage the revitalization of the downtown through the introduction of higher intensity residential and mixed land uses to create housing opportunities, pedestrian activity, commerce, and other compatible and supporting uses. Environmental Review An environmental checklist (initial study) and related studies were prepared and a determination made that the amendment/project would not result in a significant effect on the environment with the recommended mitigation measures. A mitigated negative declaration (MND) is recommended, and a mitigation monitoring and reporting program has been prepared to address the following areas: Air quality, cultural resources, geology and soils, greenhouse gas emissions, hazards and hazardous materials, noise, public services, transportation/traffic, and utilities and service systems. Development Zone 12B The proposed text for Development Zone 12B would read as follows: DEVELOPMENT ZONE # 12B EAST SIDE OF ROOSEVELT AVENUE BETWEEN CIVIC CENTER DRIVE AND 16TH STREET Development Intensity Floor Area Ratio: 4:1 Maximum Height: 65' General Guidelines: Page 2 of 4 This zone has frontage along the east side of Roosevelt Avenue from Civic Center Drive to 16th Street and extends one-half block to the east. This zone is adjacent to and west of Development Zone 12A, which fronts on National City Boulevard across from Kimball Park and the Library. The police station is to the north, and the Westside Specific Plan area is to the west and south. Proposed land uses in this zone are mulfifamlly residential, office or hotel. Retail, office or service uses may be provided at grade, but these uses should not dilute street -level pedestrian retailing in the heart of the Downtown core. Preferred Land Uses: Multifamily residential, street -oriented retail, office or hospitality. Restricted or Prohibited Land Uses: Total retail uses should not exceed 20% of the total development. Design Guidelines: • Parking shall be underground, "encapsulated" within the development site or in structures adjacent to these sites to the west. Placement of parking areas, blank walls or service areas along Roosevelt Avenue is prohibited. • Where full -block developments are proposed, a breakdown of building massing and significant articulation of dwelling units should be employed to avoid a monolithic, institutional appearance. Map Amendment The Downtown Specific Plan map would be amended to reflect the proposed boundary as shown in the following exhibit: Page 3 of 4 3 ATTACHMENT 2 RESOLUTION 24-2010 A RESOLUTION OF THE PLANNING COMMISSION OF TIIE CITY OF NATIONAL CITY, CALIFORNIA, RECOMMENDING APPROVAL OF AN AMENDMENT TO TIIE NATIONAL CITY DOWNTOWN SPECIFIC PLAN TO ADD THE AREA GENERALLY BOUNDED BY NATIONAL CITY BOULEVARD, ROOSEVELT AVENUE, CIVIC CENTER DRIVE, AND 16T" STREET AND RECOMMENDING ADOPTION OF A MITIGATED NEGATIVE DECLARATION AND AUTHORIZING TIIE FILING OF A NOTICE OF DETERMINATION APPLICANT: LIBRARY VILLAGE SOUTH, INC. CASE FILE NO. 2010-23 SP 1S APN 560-063-01, -02, -03, -04, -05; 360-C64-01, -02, -03, -04, -05; 560-014-01. -05, -II WHEREAS on December 6, 2005 the City Council of the City of National City initiated proceedings for the amendment of the National City Downtown Specific Plan in accordance with procedures of the land Use Code; and WHEREAS, the Planning Commission of the City of National City considered a Specific Plan Amendment application to amend the Downtown Specific Plan to add three half -blocks at a dul}- advertised public hearing held on September 20, 2010 at which time oral and documentary evidence ev-as presented; and, WHEREAS, at said public hearing the Planning Commission considered the staff report contained in Case File No. 2010-23 SP, IS, which is maintained by the City and incorporated herein by reference, along. with evidence and testimony at said hearing(s); and WIIEREAS, the area proposed to he added to the Downtown Specific Plan is currently zoned Light Manufacturing/Residential (MLR), which is not compatible with the land use and development regulations of the adjacent Downtown Specific Plan and Westside Specific Plan, and WHEREAS, the amendment would create a development zone that is compatible with and an appropriate transition between the Downtown Specific Plan and Westside Specific Plan, and WI IEREAS, the Downtown Specific Plan would he amended by amending Development Zone 12 to read as follows: Development Zone I 2A WHEREAS, the Downtown Specific Plan would be amended by adding Development Zone 12B to read as follows: 5 Development Zone 12B East Side of Roosevelt Avenue Between Civic Center Drive and 16`11 Street Development Intensity Floor Area Ratio: Maximum Height: 4:1 65' General Guidelines: This zone has frontage along the east side of Roosevelt Avenue from Civic Center Drive to 16th Street and extends one-half block to the east. This zone is adjacent to and west of Development Zone 12A, which fronts on National City Boulevard across from Kimball Park and the Library_ The police station is to the north, and the Westside Specific Plan area is to the west and south. Proposed land uses in this zone are multifamily residential, office or hotel. Retail, office or service uses may be provided at grade, but these uses should not dilute street -level pedestrian retailing in the heart of the Downtown core. Preferred Land Uses: Multifamily residential, street -oriented retail, office or hospitality. Restricted or Prohibited Land Uses: Total retail uses should not exceed 20% of the total development_ Design Guidelines: • Parking shall be underground, "encapsulated" within the development site or in structures adjacent to these sites to the west. Placement of parking areas, blank walls or service areas along Roosevelt Avenue is prohibited. • Where full -block developments are proposed, a breakdown of building massing and significant articulation of dwelling units should be employed to avoid a monolithic, institutional appearance_ WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law; and WHEREAS, the action recited herein is found to be essential for the preservation of public health, safety, and general welfare. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of National City, California, that the testimony and evidence presented to the Planning Commission at the public hearings) held on September 20, 20010, support the following findings: Page 2 of 4 6 RECOMMENDED FINDINGS FOR APPROVAL OF AN AMENDMENT TO THE DOWNTOWN SPECIFIC PLAN 1. The amendment is consistent with General Plan policy ILA., which emphasizes the downtown, as the City's heart, civic center, and commercial hub through the implementation of a specific plan to encourage more intensive commercial, residential, and mixed uses and pedestrian -oriented development with taller structures and higher densities_ 2. The amendment is consistent General Plan ,rolicy V.K. and V.T., which encourage mixed use development, and policy V_8., which encourages mixed uses to expand local economic markets_ 3. The amendment is consistent with the Downtown Specific Plan, which encourages the revitalization of the downtown through the introduction of residential and mixed land uses to increase housing opportunities, pedestrian activity, commerce, and other compatible and supporting uses in the downtown. 4. The amendment is in the public interest since it would increase the viability of the redevelopment of an area that is under -developed with a variety of incompatible and disjointed land uses, and would facilitate land uses that are appropriate and compatible with the adjacent mixed -use zones in the Downtown and Westside Specific Plans_ 5. The amendment is an appropriate buffer and transition in land use and development intensity between the more intensive Downtown Specific Plan and the less intensive Westside Specific Plan. 6. The amendment is consistent with the (ieaeral Plan, which encourages the implementation of design guidelines and development standards to achieve high quality development. which would occur through the development review process of the Downtown Specific Plan. RECOMMENDED FINDINGS FOR ADOPTION OF A [MITIGATED NEGATIVE DECLARATION The proposed mitigated negative declaration together with any comments received during the public review period have been considered by the Planning Commission in making its recommendation. 2. Based on the whole record, including the initial study and any comments received, there is no substantial evidence that the project will have a significant effect on the environment. 3. The proposed mitigated negative declaration reflects the City's independent judgment and analysis_ 7 Pa 3 of 4 BE IT FURTHER RESOLVED that the Planning Commission recommends that the City Council adopt the Mitigated Negative Declaration for the amendment to the Downtown Specific Plan and file a Notice of Determination. BE IT FURTHER RESOLVED that the Planning Commission recommends that the City Council approve the amendment to the Downtown Specific Plan. BE IT FURTHER RESOLVED that copies of this Resolution be transmitted forthwith to the applicant and to the City Council for public hearing before the City Council. CERTIFICATION: This certifies that the Resolution was adopted by the Planning Commission at their meeting of September 20, 2010, by the following vote: AYES: DeLaPaz, Farias, Alvarado, Baca, Pruitt, Reynolds, Flores NAYS: ABSENT': ABSTAIN: CIIA1RM'AN Pagc4of4 ATTACHMENT 3 NATIONAL CITY, CALIFORNIA APPLICATION for: Specific Plan X Amendment of a Specific Plan Make checks payable to the City of National City File application with the: National City Planning Department 1243 National City Boulevard National City, California 91950 (619)336-4310 PLEASE DO NOT USE BLUE INK WHEN COMPLETING THIS FORM FOR DEPARTMENT USE ONLY Case Number SP-2005-3 Filing Fee $ 7 019.00 Receipt No. 32/1521 Date Received 11/01/05* By E.A.F. Required X Fee $ 1,283.00 Related Cases IS-2005-3 l Z -It/ 2. *Revised Application Received on: 9-//-2 O SEE FILING INSTRUCTIONS AND CHAPTER 18.112 OF THE NATIONAL CITY MUNICIPAL CODE FOR MORE INFORMATION. 1/We hereby request the National City Planning Commission to set a public hearing to consider a Specific Plan or an Amendment of Specific Plan No. N/A , Ordinance No. N/A or Resolution No. 2005-6 to accomplish the following: Amendment of the Downtown Specific Plan to realign the specific plan boundary by adding the westerly three half -blocks east of Roosevelt Avenue. west of National City Boulevard, south of Civic Center Drive, and north of 16th Street to the plan area (Initiated by City Council action on December 6, 2005). The proposed added area would be designated as Development Zone 12B with all of the attributes of the adjacent Development Zone 12, but with a maximum Floor Area Ratio (FAR) of 4:1 and a maximum height of 65-feet. Development Zone 12 (maximum FAR of 5:1 and maximum height of 90-feet) is proposed to be designated Development Zone 12A to differentiate between the two zones. Two conceptual development projects are proposed within the proposed 12B zone. Specific Plan or Amendment of a Specific Plan Application Revised December, 1998 Page 1 9 This request for a public hearing for a Specific Plan or Amendment of a Specific Plan is being requested for the following reason(s): The westerly three half -blocks east of Roosevelt Avenue, west of National City Boulevard, south of Civic Center Drive, and north of 16th Street are located between the Downtown Specific Plan (DSP) and the proposed Westside Specific Plan (WSP). The underlying zone, Light Manufacturing Residential (MLR), is no longer appropriate for the area and is proposed to be phased out within the proposed Westside Specific Plan. The subject property should be included within the boundary of the Downtown Specific Plan to avoid creating a spot zone with the obsolete remnant MLR zone and to create a logical boundary between the DSP and WSP. PROPERTY OWNER(S) of all property included in this application: (Attached extra sheets if necessary). Name: IV `cirk Sc,\Nw, ot-k- Name: Signature Signature (Signature acknowledges that this (Signature acknowledges that this application is being filed) application is being filed) Address: M'y W be -A- . S e 3 eQ) Phone No. - 1 - ti 5 ca Fax No. $S S2.1 Date: % ._- it " 05" Address: Phone No. Fax No. Date: Note: All owners of property within the boundaries of the existing and proposed Specific Plan must sign their consent. Attach an ownership list with consent signatures for more than one ownership. Specific Plan or Amendment of a Specific Plan Application Revised December, 1998 Page 2 I0 APPLICANT Name: Library Village South, Inc. (Please type or print) Signature: (Signature certifies that the information submitted with this application is true and accurate to the best of the applicant's knowledge). Address: 9948 Hibert Street, Suite 210 San Diego, CA 91131 Phone No. (858) 271-0582 (619) 688-1557 Fax No. (858) 271-0740 Date: *For Responses: John L. Smaha 7860 Mission Center Court, Suite 100 San Diego, CA 92108 ATTACHMENTS: Land Use Code Section 18.112.090 California Government Code Section 65461 Specific Plan or Amendment of a Specific Plan Application Revised December, 1998 Page 3 11 Attachment 4 Mitigated Negative Declaration It CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 25, 2011 AGENDA ITEM NO. 10 iM TITLE: An Ordinance of the City Council of the City of National City establishing the Compensation of the Mayor and City Council PREPARED BY: PHONE: EXPLANATION: Claudia G. Silva Ext. 4222 DEPARTMENT: City Attorne APPROVED BY: On December 7, 2010, the City Council provided direction to the City Attorney regarding changes to the proposed compensation ordinance. The City Council directed the City Attorney to return with an ordinance that articulated the following for introduction: 1) increase their salary by the same percentage and the same date, if any, as for the Municipal Employees Association; 2) confirm current PERS contribution at 5%, and increasing to 8% on July 1, 2011; 3) create a second tier retirement benefit formula (2% @ 60) for future elected officials (those who assume office after the effective date of the ordinance); and 4) all other benefits to remain as set since 2003. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: X Finance MIS STAFF RECOMMENDATION: Adopt proposed ordinance. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: norandum with Attachments 1-4 ..,posed ordinance, including Exhibit "A" Mayor Ron Morrison Council Members Alejandra Sotelo-Solis Jess Van Deventer Rosalie Zarate +r. C121 ORNiA, CI? llouv 1, rhTCORPOH ATED -J Office of the City Attorney TO: Mayor and City Council FROM: City Attorney SUBJECT: Compensation of Mayor and City Council City Attorney Claudia Gacitua Silva Legal Counsel George H. Eiser,111 Senior Assistant City Attorney Jodi L. Doucette DATE: December 1, 2010 Mayor and City Council Compensation As an election has occurred and resulted in elected officials beginning new terms of office, it is now legally permissible for the Mayor and members of the City Council to approve changes to their own compensation. Generally, changes to compensation do not apply to a member of council during the member's term of office. This general rule, however, does allow for compensation to change for all members of council whenever one or more members commences a new term of office. Government Code section 36516.5. Accordingly, adjustments to compensation coincide with elections at which members begin a new term in office. A. History of Salary Adjustments The last salary adjustment for the Mayor and City Council occurred on January 7, 2003. (See Ordinance No. 2003-2215, attached as Attachment 1). The last salary adjustment set the base salary of the City Council at $909.20 per month and the base salary of the Mayor at $3,463.30 per month.' In January, 2007, an ordinance was adopted providing for an increase to Council compensation consistent with any increase to Municipal Employee Association (MEA) employees. (See, Ordinance No. 2007-2289, attached as Attachment 2). There was not an increase to MEA salaries in 2007, but a stipend instead; an MEA salary increase was to begin in January 2008. In December 2007, before the MEA salary increases went into effect, the Council rescinded their prior salary ordinance. (See, Ordinance No. 2007-2299, attached as Attachment 3). Thus, the compensation to Mayor and Council remained at the 2003 levels. r In addition to the Council compensation changes in the 2003 ordinance, changes were made to the Community Development Commission (CDC) Board compensation. The CDC compensation was reduced upon the adoption of AB 11. AB 11, effective January 1, 2006, added Section 34130.5 to the Health and Safety Code. Pursuant to that statute, CDC compensation was limited to $150 per meeting, with a maximum of $300 per month. This limitation applies to CDC compensation for the Chairman and all Board Members. 1243 National City Boulevard; National City, California 91950-4301 Tel.: (619) 336.4220 Fax: (619) 336.4327 Compensation of Mayor and City Council December 1, 2010 Page 2 The City Council may increase its compensation either by ordinance or at an election. At any municipal election, the amount of the salary can be submitted to the voters. Government Code section 36516(b)_ Historically, compensation has been set by ordinance enacted by the Council. Compensation increases cannot exceed 5% per calendar year from the date of the last increase in compensation. Government Code Section 36516(a)(4). An elected mayor, pursuant to Government Code section 36516.1, may be provided with additional compensation to that which he/she receives as a councilmember, pursuant to an ordinance or by a vote of the electors at a municipal election. There are no limitations imposed on the amount of the mayor's compensation, although the City Council has historically adjusted the Mayor's salary by the same percentage as the City Council adjustment. Based on the 5% per calendar year, the City Council can increase its salary up to 30%. The proposed ordinance assumes a 30% increase in the compensation of the Mayor and City Council, as that is the maximum and can be revised if needed. The proposed ordinance also contains provisions addressing benefits and retirement. To the extent the City Council seeks to make changes to those provisions, such changes need to be reflected in the ordinance. B. Other Compensation In addition to considering salary, it is also appropriate to consider other compensation at this time, such as benefits. Government Code section 36516(d) provides as follows: Any amounts paid by a city for retirement, health and welfare, and federal social security benefits shall not be included for purposes of determining salaty under this section, provided that the same benefits are available and paid by the city for its employees. Currently, the benefits for the Mayor and Council have remained the same since 2003, with the exception of the City -paid employee portion of the Public Employee Retirement System contribution, which has reduced over the years. The current benefits are detailed in Attachment 4. The proposed ordinance refers to the current benefit levels. C. PERS While the Mayor and Council have rejected salary increases since 2003, the Mayor and Council have adopted changes to their Public Employee Retirement System (PERS) contribution. On January 6, 2009, the City Council approved a reduction of the Employer Paid Member Contribution (EPMC) to the Public Employees Retirement System to 6%, with the Mayor and City Council paying a contribution of 2%. On June 1, 2010, each member of City Council and the Mayor voluntarily waived an additional 3% of City -paid member PERS contribution, effective July 1, 2010, with the Mayor and City Council paying a contribution of 5% to PERS. Compensation of Mayor and City Council December 1, 2010 Page 3 On that same date, each member of City Council and the Mayor also voluntarily waived the remaining 3% effective July 1, 2011. Effective July 1, 2011, the Mayor and City Council will be paying the entire 8% portion of the employee contribution to PERS.2 The PERS contribution will be reiterated in the salary ordinance. In addition, a change to the benefit formula, consistent with MEA employees, is included in the ordinance for your consideration. That benefit formula provides for a "2% at 60" formula. While a benefit formula change could now be adopted, it would not (nor could it) be applicable to any current elected officials. Retirement benefit formula changes (2-tiering) apply to those hired after the affective date of the change, not to current employees. D. Options The ordinance before you contains the elements of the possible changes to compensation: salary, benefits, and PERS. The Council has the following options: 1. Accept the first reading of the ordinance as written, which includes the permissible amount of salary adjustment, confirms benefits at the current level, confirms the PERS contribution, and establishes a 2% at 60 retirement benefit formula for elected officials; 2. Direct the City Attorney to return with a revised ordinance reflecting any changes the City Council directs in any of the areas described above; or, 3. Seek to adjust the salary of the Mayor and Cit Council embers by an election. IA City Attorney CGS/gmo 2 While the June I, 2010 resolution addressed the City -paid member PERS contribution, the salary ordinance will also include the PERS contribution. ORDINANCE NO. 2003 — 2215 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ESTABLISHING THE COMPENSATION OF THE MAYOR AND THE CITY COUNCIL, AND. THE CHAIRMAN AND BOARD MEMBERS OF THE COMMUNITY DEVELOPMENT COMMISSION BE IT ORDAINED by the City Council of the City of National City as follows: Section 1. That the base monthly compensation for the City Council is hereby fixed at Nine Hundred Nine and 20/10oths Dollars ($909.20) per month, pursuant to the provisions of Sections 36516 and 36516.5 of the California Government Code. Section 2. That the base monthly salary of the Mayor is herby fixed at $3,463.30 per month, pursuant to the provisions of Section 36516.1 of the Government Code. Section 3. That the base monthly salary for the Chairman and each Board Member of the Community Development Commission is fixed at Nine Hundred Seventy Five and 331100ths Dollars ($975.33) per month, pursuant to the provisions of Section 34130 of the Health and Safety Code. Section 4. That the benefits for the Mayor and City Council and the Chairman and the Board Members of the Community Development Commission shall be .established as set forth in the attached Exhibit "A", which is incorporated herein by reference. PASSED and ADOPTED this 7th - day of January , 2003. Nick Inzu a, a� ATTEST: APPROVED AS TO FORM: George H. Eiser, Ill City Attorney Attachment 1 Pave 1 MAYOR City to pay $750/month for car allowance. MAYOR AND CITY COUNCIL AND CHAIRMAN AND THE BOARD MEMBERS OF THE CDC a) City to pay $850/month for health coverage with a cash -in -lieu option. b) City to pay $40/month for life insurance, in addition to $25,000 term life insurance policy already provided by City. c) City and Community Development Commission to pay $350/month for expense account. d) City to establish annual fund of $3,000 to be used for college level language training in a foreign language. e) City to pay full City and official's portion of PERS contribution, and contract options shall be thesame as those granted to other PERS Miscellaneous Members within the City. All other benefits for Mayor and City Council and the Chairman and the Board Members of the Community Development Commission are to remain the same. EXHIBIT "A" Attachment 1 Page 2 ORDINANCE NO. 2007 - 2289 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ESTABLISHING THE SALARIES OF THE MAYOR AND CITY COUNCIL BE IT ORDAINED by the City Council of the City of National City as follows: Section 1. That pursuant to the provisions of Sections 36516 and 36516.5 of the California Government Code, for the time period between the effective date of•this Ordinance and the general municipal election held in November, 2008. the base monthly salary for the City Council shall be increased by the same percentages, on the same dates, and subject to the same conditions, as the upcoming salary increases for Municipal Employees' Association members, if any, provided that the salary increases for the City Council shall not exceed a total of twenty percent of the current base monthly salary. If the base monthly salary of the City Council is not adjusted upon the beginning of a councitmember's new term of office subsequent to the November 2008 election, the base monthly salary established by this Ordinance shall remain in effect. Section 2. That pursuant to the provisions of Section 36516.1 of the Government - Code, for the time period between the effective date of this Ordinance and the general municipal election to be held in November, 2008, the base monthly salary for the Mayor shall be increased by the same percentages, on the same dates, and subject to the same conditions, as the upcoming salary increases for Municipal Employees' Association members, if any, provided that the salary increases for the Mayor shall not exceed a total of twenty percent of f the current base monthly salary. If the base monthly salary of the Mayor is not adjusted upon the beginning of a councilmember's new term of office subsequent to the November 2008 election, the base monthly salary established by this Ordinance shall remain in effect. PASSED and ADOPTED this 16th day of January,, 2)07. ATTEST: urlifild Mi et R. Dalta, Ci y Clerk Ron Morrison, Mayor APPROVED AS TO FORM: George H. riser, III City Attorney Attachment 2 ORDINANCE NO. 2007 — 2299 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REPEALING AN INCREASE IN THE SALARIES OF THE MAYOR AND CITY COUNCIL BY REPEALING ORDINANCE NO. 2007-2289 WHEREAS, at the City Council meeting of January 16, 2007, the Mayor and Council adopted Ordinance No. 2007-2289: which increased their salaries by the same percentages, on the same dates, and subject to the same conditions as the salary increases, if any, for the Municipal Employees' Association. Before the adoption of Ordinance No. 2007- 2289, the last salary adjustment for the Mayor and Council occurred on January 7, 2003; and WHEREAS, it has been proposed by members of the City Council that the Council repeat Ordinance Na 2007-2289, which would leave the salaries and benefits of the Mayor and City Council at the same level as they existed since January, 2003. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of National City that Ordinance No. 2007-2289 is hereby repealed. - PASSED and ADOPTED this 4th day of Dece .. e 2007. -- Ap on Morrison, Mayor ATTEST: H N A Mich et Dalla, City lerk APPROVED AS TO FORM: George H. Eiser, I11 City Attorney Attachment 3 ORDINANCE NO. 2011 — 2359 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ESTABLISHING THE COMPENSATION OF THE MAYOR AND THE CITY COUNCIL BE IT ORDAINED by the City Council of the City of National City as follows: Section 1. That pursuant to the provisions of Sections 36516 and 36516.5 of the California Government Code, for the time period between the effective date of this Ordinance and the general municipal election held in November, 2012, the base monthly salary for the City Council shall be increased by the same percentages, on the same dates, and subject to the same conditions, as the upcoming salary increases for Municipal Employees' Association members, if any, provided that the salary increases for the City Council shall not exceed a total of thirty percent of the current base monthly salary. If the base monthly salary of the City Council is not adjusted upon the beginning of a councilmember's new term of office subsequent to the November 2012 election, the base monthly salary established by this Ordinance shall remain in effect. Section 2. That pursuant to the provisions of Section 36516.1 of the Government Code, for the time period between the effective date of this Ordinance and the general municipal election to be held in November, 2012, the base monthly salary for the Mayor shall be increased by the same percentages, on the same dates, and subject to the same conditions, as the upcoming salary increases for Municipal Employees' Association members, if any, provided that the salary increases for the Mayor shall not exceed a total of thirty percent of the current base monthly salary. If the base monthly salary of the Mayor is not adjusted upon the beginning of a councilmember's new term of office subsequent to the November 2012 election, the base monthly salary established by this Ordinance shall remain in effect. Section 3. That the Mayor and City Council's employee PERS contribution shall remain and be at five percent (5%) through June 30, 2011, and shall be the entire employee share contribution of eight percent (8%) effective July1, 2011, paid from their respective salaries. Section 4. That the retirement benefit formula shall be established at the same formula as those granted to the Municipal Employees Association, to wit: 2% at 60, applicable to Mayor and City Council members first elected on or after the effective date of the PERS contract amendment. Section 5. That the benefits for the Mayor and City Council shall be as set forth in the attached Exhibit "A", which is incorporated herein by reference. PASSED and ADOPTED this 25th day of January, 2011. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Della, City Clerk Claudia G. Silva City Attorney ORDINANCE NO. 2011 — 2359 MAYOR City to pay $750/month for car allowance. MAYOR AND CITY COUNCIL a) City to pay $850/month for health coverage with a cash -in -lieu option. b) City to pay $40/month for life insurance, in addition to $25,000 term life insurance policy already provided by City. c) City to pay $350/month for expense account. d) City to establish annual fund of $3,000 to be used for college level language training in a foreign language. e) City to pay full City portion of PERS contribution. Elected officials pay 5% of the employee contribution, and will pay 8%, the full employee contribution, effective July 1, 2011. f) PERS retirement benefit formula shall be the same as those granted to the Municipal Employee Association, which is part of the PERS Miscellaneous Employees within the City, to wit: 2% @ 60 if hired /first elected after the effective date of the PERS contract amendment. All other benefits for Mayor and City Council are to remain the same. MAYOR City to pay $750/month for car allowance. EXHIBIT "A" MAYOR AND CITY COUNCIL a) City to pay $850/month for health coverage with a cash -in -lieu option. b) City to pay $40/month for life insurance, in addition to $25,000 term life insurance policy already provided by City. c) City to pay $3501month for expense account. d) City to establish annual fund of $3,000 to be used for college Ievel language training in a foreign language. e) City to pay full City portion of PERS contribution. Elected officials pay 5% of the employee contribution, and will pay 8%, the full employee contribution, effective July 1, 2011. All other benefits for Mayor and City Council are to remain the same. Attachment 4 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT TING DATE: January 25, 2011 AGENDA ITEM NO. 11 ITEM TITLE: Resolution — Downtown Specific Plan Amendment and Mitigated Negative Declaration. Case File No. 2010-23 SPA IS. Applicant: Library Village South, Inc. PREPARED BY: Raymond Pe DEPARTMENT: Con it elopment PHONE: 336-4421 APPROVED BY: EXPLANATION: A resolution to adopt the mitigated negative declaration and approve the specific plan amendment (2010-23 SPA, IS) to amend the Downtown Specific Plan. FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: A mitigated negative declaration has been prepared. ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adoption of the resolution. BOARD / COMMISSION RECOMMENDATION: On September 20, 2010, the Planning Commission voted to recommend adoption of the mitigated negative declaration and approval of the specific plan amendment. TACHMENTS: RESOLUTION 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING A MITIGATED NEGATIVE DECLARATION AND MITIGATION MONITORING AND REPORTING PROGRAM, AMENDING THE DOWNTOWN SPECIFIC PLAN BY ADDING THE AREA GENERALLY BOUNDED BY NATIONAL CITY BOULEVARD, ROOSEVELT AVENUE, CIVIC CENTER DRIVE, AND 16TH STREET, AND AUTHORIZING THE FILING OF A NOTICE OF DETERMINATION APN 560-063-01, -02, -03, -04, -05; 560-064-01, -02, -03, -04, -05; 560-014-01, -05, -11 Applicant: Library Village South, Inc., Case File No. 2010-23 SPA, IS WHEREAS, on February 1, 2005, the City Council adopted Resolution No. 2005- 18 pursuant to California Government Code Section 65450 (et. seq.) adopting the Downtown Specific Plan; and WHEREAS on December 6, 2005, the City Council initiated proceedings for the amendment of the National City Downtown Specific Plan in accordance with procedures of the Land -Use Code nd WHEREAS, on September 20, 2010, the Planning Commission considered a specific plan amendment application to amend the Downtown Specific Plan at a duly advertised public hearing at which time oral and documentary evidence was presented; and WHEREAS, a proposed mitigated negative declaration and mitigation monitoring and reporting program were prepared as the result of the findings of an initial study; and WHEREAS, at said public hearing the Planning Commission considered the proposed mitigated negative declaration, mitigation monitoring and reporting program, and staff report contained in Case File No. 2010-23 SP, IS, incorporated herein by reference, along with comments received during the public review process and all evidence and testimony presented at the public hearing; and WHEREAS, the Planning Commission adopted Resolution No. 24-2010 recommending City Council adoption of the mitigated negative declaration and approval of the specific plan amendment to the Downtown Specific Plan, and WHEREAS, on January 25, 2011, the City Council considered the specific plan amendment application to amend the Downtown Specific Plan at a duly advertised public hearing at which time oral and documentary evidence was presented; and WHEREAS, at said public hearing the City Council considered Planning Commission Resolution No. 24-2010, the proposed mitigated negative declaration, mitigation monitoring and reporting program, and staff report contained in Case File No. 2010-23 SP, IS, along with comments received during the public review process and all evidence and testimony presented at the public hearing; and WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law; and WHEREAS, the action recited herein is found to be essential for the preservation of public health, safety and general welfare. Resolution No. 2011 — January 25, 2011 Page 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the testimony and evidence presented at the public hearings support the following findings: FINDINGS FOR APPROVAL OF AN AMENDMENT TO THE DOWNTOWN SPECIFIC PLAN 1. The amendment is consistent with General Plan Policy I I.A., which emphasizes the downtown, as the City's heart, civic center, and commercial hub through the implementation of a specific plan to encourage more intensive commercial, residential, and mixed uses, and pedestrian -oriented development with taller structures and higher densities. 2. The amendment is consistent with General Plan Policy V.K. and V.J., which encourage mixed use development, and Policy V.B., which encourages mixed uses to expand local economic markets. 3. The amendment is consistent with the Downtown Specific Plan, which encourages the revitalization of the downtown through the introduction of residential and mixed land uses to increase housing opportunities, pedestrian activity, commerce, and other compatible and supporting uses in the downtown. 4. The amendment is in the public interest since it would increase the viability of the redevelopment of an area that is under -developed with a variety of incompatible and disjointed land uses, and would facilitate land uses that are appropriate and compatible with the adjacent mixed -use zones in the Downtown and Westside Specific Plans. 5. The amendment is an appropriate buffer and transition in land use and development intensity between the more intensive Downtown Specific Plan and the less intensive Westside Specific Plan. 6. The amendment is consistent with the General Plan, which encourages the implementation of design guidelines and development standards to achieve high quality development, which would occur through the consistency review process of the Downtown Specific Plan. FINDINGS FOR ADOPTION OF A MITIGATED NEGATIVE DECLARATION 1. The proposed mitigated negative declaration together with any comments received during the public review period have been considered by the City Council in making its recommendation. 2. Based on the whole record, including the initial study and any comments received, there is no substantial evidence that the project will have a significant effect on the environment with the adoption of the recommended mitigation measures. 3. The proposed mitigated negative declaration reflects the City's independent judgment and analysis. Resolution No. 2011 — January 25, 2011 Page 3 ADOPTION OF A MITIGATED MONITORING AND REPORTING PROGRAM 1. Mitigation measures have been imposed in the project and will be monitored in the Mitigation Monitoring and Reporting Program (MMRP). 2. The MMRP is adopted as part of this action. BE IT FURTHER RESOLVED that the City Council has considered the proposed mitigated negative declaration together with any comments received during the public review process, and finds on the basis of the whole record (including the initial study and any comments received) that there is no substantial evidence that the project will have a significant effect on the environment with the adoption of the recommended mitigation measures, and that the proposed mitigated negative declaration reflects the City's independent judgment and analysis, and hereby adopts the mitigated negative declaration and mitigation monitoring and reporting program, and authorizes the filing of a Notice of Determination. BE IT FURTHER RESOLVED that the City Council hereby adopts Specific Plan Amendment 2010-23 SP, IS to amend the Downtown Specific Plan as follows: Section 1. The Downtown Specific Plan is hereby amended by amending Development Zone 12 to read as follows: Development Zone 12A Section 2. The Downtown Specific Plan is hereby amended by adding Development Zone 12B to read as follows: Development Zone 12B East Side of Roosevelt Avenue Between Civic Center Drive and 16th Street Development Intensity Floor Area Ratio: 4:1 Maximum Height: 65' General Guidelines: This zone has frontage along the east side of Roosevelt Avenue from Civic Center Drive to 16th Street and extends one-half block to the east. This zone is adjacent to and west of Development Zone 12A, which fronts on National City Boulevard across from Kimball Park and the Public Library. The police station is to the north, and the Westside Specific Plan area is to the west and south. Proposed land uses in this zone are multifamily residential, office or hotel. Retail, office or service uses may be provided at grade, but these uses should not dilute street -level pedestrian retailing in the heart of the Downtown core. Resolution No. 2011 — January 25, 2011 Page 4 Preferred Land Uses: Multifamily residential, street -oriented retail, office or hospitality. Restricted or Prohibited Land Uses: Total retail uses should not exceed 20% of the total development. Design Guidelines: • Parking shall be underground, encapsulated within the development site or in structures adjacent to these sites to the west. Placement of parking areas, blank walls or service areas along Roosevelt Avenue is prohibited. • Where full -block developments are proposed, a breakdown of building massing and significant articulation of dwelling units should be employed to avoid a monolithic, institutional appearance. Section 3. The Downtown Specific Plan is hereby amended by amending the Downtown Specific Plan map to include Development Zone 12A and Development Zone 12B, as shown in Exhibit A. PASSED and ADOPTED this 25th day of January, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney Exhibit A 0 0 0 (1), co\11-1R ° G\\1 A A r 4 00 ° 1 Al \-\ s • g • 2 •?,.• 2 .•_ • • • • . • 0 • V, 0. 0 0 MD Feet All • • • .0 0' v. .03 1 0 ts1 <*k.` 1.2 E ATTACHMENT 1 BACKGROUND REPORT Specific Plan Amendment and Mitigated Negative Declaration 2010-23 SPA IS Amendment/Project Description The amendment would add approximately 3.69 acres to the Downtown Specific Plan and includes three half -blocks consisting of 13 parcels totaling approximately 1.95 acres. The area is currently zoned Light Manufacturing/Residential (MLR), which allows single family residential or low intensity industrial uses including light manufacturing, warehousing, and automotive uses. The amendment would allow mixed uses including mid -rise multi -family residential, street -oriented retail, office, and hospitality uses. The proposed development zone (DZ-12B) would allow a floor area ratio (FAR) of 4:1 and building height of 65-feet. The current MLR zone allows an FAR of 2:1 and a building height of 35-feet. The proposed development zone (DZ-12B) would be adjacent to the existing development zone (DZ-12) to the east, which allows for the same uses at a greater intensity (FAR 5:1 and 90-feet). Development zone (DZ-12) would be renamed development zone (DZ-12A) to differentiate it from development zone (DZ-12B). The proposed development zone (DZ-12B) would be adjacent to the Westside Specific Plan west of Roosevelt Avenue. The adjacent zones in the WSP are Mixed Use Commercial —Residential 1 and 2 (MCR-1 and MCR-2), which allow mixed uses including multi -family residential, retail and service commercial, and office uses up to a maximum FAR of 0.6:1. The MCR-1 zone allows a maximum height of 50-feet and 24 units per acre. The MCR-2 zone allows a maximum height of 65-feet and 45 units per acre. The amendment would apply to one of the few remaining areas zoned MLR and would create a common boundary between the Downtown and Westside Specific Plans. The MLR zone has been problematic since incompatible uses can occur when residential and industrial uses are located in close proximity without adequate buffering or operational controls. The MLR zone has been eliminated from the Westside Specific Plan. Project Analysis The proposed land use and development regulations for DZ-12B would create an appropriate transition between the existing DZ-12 (12A) to the east and the MCR-1 and MCR-2 zones to the west. Mixed use (emphasizing multi -family residential) would replace single-family/light industrial as permitted uses within the amendment area, which would be consistent with the mixed uses permitted in the adjacent zones. Maximum building heights would step down from east to west: 90-feet in DZ-12A, 65-feet in DZ-12B and MCR-2, and 50-feet in MCR-1. The maximum FAR in DZ-12B would be 20-percent less than DZ-12A. Page 1 of 4 1 The potential development that could occur within DZ-12A and DZ-12B is discussed in the environmental checklist (initial study) prepared for the proposed amendment. The study illustrates one example of the building intensity that could occur if development is maximized in both zones along with the 45 units proposed by the applicant. The study shows that the proposed regulations for DZ-12B would result in an appropriate transition in scale from the Downtown Specific Plan to the Westside Specific Plan. The proposed land use and development regulations would be appropriate for the area. The adoption of the Downtown and Westside Specific Plans resulted in the three half - blocks remaining with MLR zoning that is incompatible with the land uses allowed in the two adjacent specific plans. The amendment would eliminate the planned land use incompatibility and allow future development to occur with an appropriate mix of uses relative to the two adopted specific plans. The amendment would be consistent with the General Plan and the Downtown Specific Plan, which encourage the revitalization of the downtown through the introduction of higher intensity residential and mixed land uses to create housing opportunities, pedestrian activity, commerce, and other compatible and supporting uses. Environmental Review An environmental checklist (initial study) and related studies were prepared and a determination made that the amendment/project would not result in a significant effect on the environment with the recommended mitigation measures. A mitigated negative declaration (MND) is recommended, and a mitigation monitoring and reporting program has been prepared to address the following areas: Air quality, cultural resources, geology and soils, greenhouse gas emissions, hazards and hazardous materials, noise, public services, transportation/traffic, and utilities and service systems. Development Zone 12B The proposed text for Development Zone 12B would read as follows: DEVELOPMENT ZONE #12B EAST SIDE OF ROOSEVELT AVENUE BETWEEN CIVIC CENTER DRIVE AND 16TH STREET Development Intensity Floor Area Ratio: 4:1 Maximum Height: 65' General Guidelines: 2 Page 2 of 4 This zone has frontage along the east side of Roosevelt Avenue from Civic Center Drive to 16th Street and extends one-half block to the east. This zone is adjacent to and west of Development Zone 12A, which fronts on National City Boulevard across from Kimball Park and the Library. The police station is to the north, and the Westside Specific Plan area is to the west and south. Proposed land uses in this zone are multifamily residential, office or hotel. Retail, office or service uses may be provided at grade, but these uses should not dilute street -level pedestrian retailing in the heart of the Downtown core. Preferred Land Uses: Multifamily residential, street -oriented retail, office or hospitality. Restricted or Prohibited Land Uses: Total retail uses should not exceed 20% of the total development. Design Guidelines: • Parking shall be underground, "encapsulated" within the development site or in structures adjacent to these sites to the west. Placement of parking areas, blank walls or service areas along Roosevelt Avenue is prohibited. • Where full -block developments are proposed, a breakdown of building massing and significant articulation of dwelling units should be employed to avoid a monolithic, institutional appearance. Map Amendment The Downtown Specific Plan map would be amended to reflect the proposed boundary as shown in the following exhibit: Page 3 of 4 3 x,muta'VzaVticts,em ATTACHMENT 2 RESOLUTION 24-2010 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA, RECOMMENDING APPROVAL OF AN AMENDMENT TO THE NATIONAL CITY DOWNTOWN SPECIFIC PLAN TO ADD THE AREA GENERAIIX BOUNDED BY NATIONAL CITY BOULEVARD, ROOSEVELT AVENUE, CIVIC CENTER DRIVE, AND 16rr{ STREET AND RECOMMENDING ADOPTION OF A MITIGATED NEGATIVE DECLARATION AND AUTHORIZING THE FILING OF A NOTICE OF DETERMINATION APPLICANT: LIBRARY VILLAGE SOUTH, INC_ CASE FILE NO. 2010-23 SP IS APN 560-063-01, -02, -03, -04, -05; 560-04-01, -02, -03, -04, -05; 560-014-01, -05, -1 I WHEREAS on December 6, 2005 the City Council of the Cit of National City initiated proceedings for the amendment of the National City Downtown Specific Plan in accordance Nvith procedures of the Land Use Code; and WHEREAS, the Planning Commission of the City of National City considered a Specific Plan Amendment application to amend the Downtown Specific Plan to add three half -blocks at a duly advertised public hearing held on September 20, 2010 at which time oral and documentary evidence was presented; and, WHEREAS, at said public hearing the Planning Commission considered the staff report contained in Case File No_ 2010-23 SP, IS, which is maintained by the City and incorporated herein by reference, along with evidence and testimony at said hearing(s); and WHEREAS, the area proposed to be added to the Downtown Specific Plan is currently zoned Light Manufacturing/Residential (MLR), which is not compatible with the land use and development regulations of the adjacent Downtown Specific Plan and Westside Specific Plan, and WHEREAS, the amendment xvould create a development zone that is compatible with and an appropriate transition between the Downtown Specific Plan and Westside Specific Plan, and ll'hIEREAS, the Downtown Specific Plan would be amended by amending Development Zone 12 to read as follows: Development Zone 12A WHEREAS, the Downtown Specific Plan would be amended by adding Development Zone 12B to read as follows: Development Zone t213 East Side of Roosevelt Avenue Between Civic Center Drive and 16`h Street Development lntensit. Floor Area Ratio: Maximum Height: 4:1 65' General Guidelines: This zone has frontage along the east side of Roosevelt Avenue from Civic Center Drive to 16th Street and extends one-half block to the east This zone is adjacent to and west of Development Zone 12A, which fronts on National City Boulevard across from Kimball Park and the Library_ The police station is to the north, and the Westside Specific Plan area is to the west and south. Proposed land uses in this zone are multifamily residential, office or hotel. Retail, office or service uses may be provided at grade, but these uses should not dilute street -level pedestrian retailing in the heart of the Downtown core. Preferred Land Uses: Multifamily residential. street -oriented retail, office or hospitality. Restricted or Prohibited Land Uses: Total retail uses should not exceed 20% of the total development. Design Guidelines: • Parking shall be underground, "encapsulated" within the development site or in structures adjacent to these sites to the west Placement of parking areas, blank walls or service areas along Roosevelt Avenue is prohibited. • Where full -block developments are proposed, a breakdown of building massing and significant articulation of dwelling units should be employed to avoid a monolithic, institutional appearance. WHEREAS, this action is taken pursuant to all applicable procedures required bv State law and City law; and WHEREAS, the action recited herein is found to be essential for the preservation of public health, safety, and general welfare. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of National City, California, that the testimony and evidence presented to the Planning Commission at the public hearing(s) held on September 20, 20010, support the following findings: Page2ofa RECOMMENDED FINDINGS FOR APPROVAL OF AN AMENDMENT TO THE DOWNTOWN SPECIFIC PLAN The amendment is consistent with General Ilan policy B.A., which emphasizes the downtown, as the City's heart, civic center, and commercial hub through the implementation of a specific plan to encourage more intensive commercial, residential, and mixed uses and pedestrian -oriented development with taller structures and higher densities. 2. The amendment is consistent General Plan ,rolicy V_K_ and V_J_, which encourage mixed use development. and policy V.S., which encourages mixed uses to expand local economic markets. 3. The amendment is consistent with the Downtown Specific Plan, which encourages the revitalization of the downtown through the introduction of residential and mixed land uses to increase housing opportunities, pedestrian activity, commerce, and other compatible and supporting uses in the downtown. The amendment is in the public interest since it would increase the viability of the redevelopment of an area that is under -developed with a variety of incompatible and disjointed land uses, and would facilitate land uses that are appropriate and compatible xvith the adjacent mixed -use zones in the Downtown and Westside Specific Plans. __ The amendment is an appropriate buffer and transition in land use and development intensity between the more intensive Downtown Specific Plan and the less intensive Westside Specific Plan 6. The amendment is consistent with the General Plan, which encourages the implementation of design guidelines and development standa:ds to achieve high quality development, which xvould occur through the development review process of the Downtown Specific Plan_ RECOMMENDED FINDINGS FOR ADOPTION OF A MITIGATED NEGATIVE DECLARATION I . The proposed mitigated negative declaration together with any comments received during the public review period have been considered by the Planning Commission in making its recommendation. 2_ Based on the whole record, including the initial study and any comments received, there is no substantial evidence that the project will have a significant effect on the environment. The proposed mitigated negative declaration reflects the City's independent judgment and analysis_ 7 Page 3 of4 BE IT FURTHER RESOLVED that the Plarming Commission recommends that the City Council adopt the Mitigated Negative Declaration for the amendment to the Downtown Specific Plan and file a Notice of Determination_ . BE IT FURTHER RESOLVED that the Planning Commission recommends that the City Council approve the amendment to the Downtown Specific Plan. BE IT FURTHER RESOLVED that copies of this Resolution be transmitted forthwith to the applicant and to the City Council for public hearing before the City Council. CERTIFICATION: This certifies that the Resolution was adopted by the Planning Commission at their meeting of September 20, 2010, by the following vote: AYES: DeLaPaz, Farias, Alvarado, Baca, Pruitt, Reynolds, F1.ores NAYS: ABSENT ABSTAIN: C7N 8 Page 4of4 ATTACHMENT 3 NATIONAL CITY, CALIFORNIA APPLICATION for: Specific Plan X Amendment of a Specific Plan Make checks payable to the City of National City File application with the: National City Planning Department 1243 National City Boulevard National City, California 91950 (619) 336-4310 PLEASE DO NOT USE BLUE INK WHEN COMPLETING THIS FORM FOR DEPARTMENT USE ONLY Case Number SP-2005-3 Filing Fee $ 7 019.00 Receipt No. 32/1521 Date Received 11/01/05* By E.A.F. Required X Fee $ 1,283.00 Related Cases IS-2005-3 ► ;449 - 5/1 -fc *Revised Application Received on: 9-//--2 SEE FILING INSTRUCTIONS AND CHAPTER 18.112 OF THE NATIONAL CITY MUNICIPAL CODE FOR MORE INFORItL4TION. I/We hereby request the National City Planning Commission to set a public hearing to consider a Specific Plan or an Amendment of Specific Plan No. N/A , Ordinance No. N/A or Resolution No. 2005-6 to accomplish the following: Amendment of the Downtown Specific Plan to realign the specific plan boundary by adding the westerly three half -blocks east of Roosevelt Avenue, west of National City Boulevard, south of Civic Center Drive, and north of l6th Street to the plan area (Initiated by City Council action on December 6, 2005). The proposed added area would be designated as Development Zone 12B with all of the attributes of the adjacent Development Zone 12, but with a maximum Floor Area Ratio (FAR) of 4:1 and a maximum height of 65-feet. Development Zone 12 (maximum FAR of 5:1 and maximum height of 90-feet) is proposed to be designated Development Zone 12A to differentiate between the two zones. Two conceptual development projects are proposed within the proposed 12B zone. Specific Plan or Amendment of a Specific Plan Application Revised December, 1998 Page 1 9 This request for a public hearing for a Specific Plan or Amendment of a Specific Plan is being requested for the following reason(s): The westerly three half -blocks east of Roosevelt Avenue, west of National City Boulevard, south of Civic Center Drive, and north of 16th Street are located between the Downtown Specific Plan (DSP) and the proposed Westside Specific Plan (WSP). The underlying zone, Light Manufacturing Residential (MLR), is no longer appropriate for the area and is proposed to be phased out within the proposed Westside Specific Plan. The subject property should be included within the boundary of the Downtown Specific Plan to avoid creating a spot zone with the obsolete remnant MLR zone and to create a logical boundary between the DSP and WSP. PROPERTY OWNER(S) of all property included in this application: (Attached extra sheets if necessary). Name: Signature /��( (Signature acknowledges that this application is being filed) Name: Signature (Signature acknowledges that this application is being filed) Address: (AV" a-tO Address: Phone No. g5C6' - 0:1l - aSt-.2. Fax No. Date: % - %l "Dcc-- Phone No. Fax No. Date: Note: All owners of property within the boundaries of the existing and proposed Specific Plan must sign their consent. Attach an ownership list with consent signatures for more than one ownership. Specific Plan or Amendment of a Specific Plan Application Revised December, 1998 Page 2 ,O APPLICANT Name: Library Village South, Inc. (Please type or print) Signature: (Signature certifies that the information submitted with this application is true and accurate to the best of the applicant's knowledge). Address: 9948 Hibert Street. Suite 210 San Diego, CA 91131 Phone No. (858) 271-0582 (619) 688-1557 Fax No. (858) 271-0740 Date: *For Responses: John L. Smaha 7860 Mission Center Court, Suite 100 San Diego, CA 92108 ATTACHMENTS: Land Use Code Section 18.112.090 California Government Code Section 65461 Specific Plan or Amendment of a Specific Plan Application Revised December, 1998 Page 3 /I Attachment 4 Mitigated Negative Declaration CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 25, 2011 AGENDA ITEM NO. 12 'EM TITLE: Resolution of the City of National City: in recognition of concessions made by Executive and Management employee groups in the form of a full eight percent employee paid contribution to retirement, a two tiered retirement formula and a vacation accrual cap of three times the accrual rate, a resolution authorizing a one-time performance and retention incentive payment of three percent to eligible employees in the Executive and Management groups (excepting the City Attorney) in lieu of increases in base salary, and approving a transfer of $75,063 from the General Fund Contingency Reserve to the Personnel Compensation Fund for said payment. PREPARED BY: Chris Zapata PHONE: 336-4240 EXPLANATION: See attached. DEPARTMENT: APPROVED BY: FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. 001-409-000-099-0000 and 212-00000-3999 APPROVED: MIS Establish appropriations in the amount of 75,063 and Transfer said funds from General Fund (001) to the Personnel Compensation Fund (212). Reduce the General Fund Contingency Reserve in the amount of $75,063. After the transfer of gyaFibe rig l_FLur pntwency Reserve Balance is $6,041,381. N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance STAFF RECOMMENDATION: Adopt the Resolution BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: �ff Report CITY OF NATIONAL CITY MEMORANDUM DATE: January 25, 2011 TO: Honorable Mayor and City Council FROM: Chris Zapata, City Manager SUBJECT: Staff Report: Resolution of the City of National City: in recognition of concessions made by Executive and Management employee groups in the form of a full eight percent employee paid contribution to retirement, a two tiered retirement formula and a vacation accrual cap of three times the accrual rate, a resolution authorizing a one-time performance and retention incentive payment of three percent to eligible employees in the Executive and Management groups (excepting the City Attorney) in lieu of increases in base salary, and approving a transfer of $75,063 from the General Fund Contingency Reserve to the Personnel Compensation Fund for said payment. In recognition and support of the City's efforts to control on -going expenses related to employee salaries and benefits, employees serving in the Executive and Management groups agreed to make employee contributions to the Public Employees Retirement System (PERS) and to forego salary increases, with one salary increase granted over a ten (10) year period. Given the City's fiscal constraints, staffing levels have been reduced, and programs and departments have been consolidated. Throughout, executives and managers have continued to provide a high level of service to the residents of National City while striving to create efficiencies, achieve cost savings and generate new sources of revenue. In keeping with these principles and practices, salaries for these two groups have held relatively constant. Since calendar year 2002, employees of these two groups have received one cost of living adjustment, with a commitment to no additional salary increases over a ten year period. In addition to salary freezes, other concessions made by the Executive and Management groups include the following: • The 34 employees comprising the Executive and Management groups contribute six percent (6%) and five percent (5%), respectively of the employee contribution to PERS, totaling savings of $180,000, annually. Honorable Mayor and City Council Staff Report: Resolution to Authorize a One -Time Stipend for Executives and Managers January 25, 2011 Page 2 • On July 1, 2011, the percentage will increase to eight percent (8%), which is the full employee contribution as allowed under PERS. As such, these will be the first two groups, along with the elected officials to reach the full employee contribution. In total, the Executive and Manager contributions to PERS will result in on -going savings of more than $260,000 ($180,000 in fiscal year 2010/2011 and an additional $80,500 in fiscal year 2011/2012, rounded). • On January 11, 2011, the City Council took action to create a second tier retirement formula for miscellaneous employees, including Executives and Managers. Under the second tier, employee hired into the City on or after the change is effected will receive a retirement benefit of 2% 60. instead of the current 3% @ 60. With that, new Executives and Managers will pay the full eight percent (8%) retirement contribution and receive a lesser retirement benefit. • As a next step, a vacation accrual cap will be established for members of the Executive group. All other employee groups have vacation leave accrual caps, including the Management group. Vacation accrual caps serve to control the City's unfunded liability. Vacation time can be cashed out periodically each year and/or cashed out at separation. Vacation may be accrued at one rate of pay and, by the time the employee cashes it out, it may have increased in value as it is cashed out at the employee's current rate of pay. The accrual caps limit the City's fiscal exposure. The Executive group cap will be equal to three times the accrual rate or 360 hours in the first ten years of employment and 480 hours after ten years. Recommendation: In light of the above, the City Manager requests City Council approval of a two percent (2%) stipend for 2011 and a one percent (1%) stipend for 2012, for a total three percent (3%) one time stipend for an eighteen month period, effective immediately for members of the Executive and Management groups, excepting the City Attorney. Stipends have been used by the City of National City as an effective means of recognizing and retaining personnel without creating on- going fiscal obligations for the City. RESOLUTION 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY IN RECOGNITION OF CONCESSIONS MADE BY EXECUTIVE AND MANAGEMENT EMPLOYEE GROUPS IN THE FORM OF A FULL 8% EMPLOYEE PAID CONTRIBUTION TO RETIREMENT, A TWO -TIERED RETIREMENT FORMULA AND A VACATION ACCRUAL CAP OF THREE TIMES THE ACCRUAL RATE, A RESOLUTION AUTHORIZING A ONE-TIME PERFORMANCE AND RETENTION INCENTIVE PAYMENT OF 3% FOR ELIGIBLE EMPLOYEES IN THE EXECUTIVE AND MANAGEMENT GROUPS (EXCEPT THE CITY ATTORNEY) IN LIEU OF INCREASES IN BASE SALARY, AND APPROVING THE TRANSFER OF $75,063 FROM THE GENERAL FUND CONTINGENCY RESERVE TO THE PERSONNEL COMPENSATION FUND FOR SAID PAYMENT WHEREAS, in recognition and support of the City's efforts to control on -going expenses related to employee salaries and benefits, employees serving in the Executive and Management groups agreed to make employee contributions to the Public Employees Retirement System (PERS) and to forego salary increases, with one salary increase granted over a ten year period; and WHEREAS, on July 1, 2011, the percentage of the employee contribution to PERS for the executive and management groups will increase to 8%, which is the full employee contribution as allowed under PERS; and WHEREAS, given the City's fiscal constraints, staffing levels have been reduced, and programs and departments have been consolidated. Throughout, executives and managers have continued to provide a high level of service to the residents of National City while striving to create efficiencies, achieve cost savings, and generate new sources of revenue; and WHEREAS, since calendar year 2002, employees of these two groups have received one cost of living adjustment with a commitment to no additional salary increase over a ten year period; and WHEREAS, a one-time performance and incentive payment of 3% is requested in recognition of the efforts of the employees represented by the Executive and Management group, excepting the City Attorney; and WHEREAS, a transfer of funds in the amount of $75,063 from the General Fund Contingency Reserve to the Personnel Compensation Fund is necessary to fund said payment. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the following transfer of funds: FROM: TO: Account No. 001-409-000-099-0000 General Fund Contingency Reserve Account No. 212-00000-3999 Personnel Compensation Fund Resolution No. 2011 — Page 2 TOTAL AMOUNT: $75,063 PURPOSE: To fund a one-time performance and retention incentive payment to eligible employees of the Executive and Management Employee Groups. BE IT FURTHER RESOLVED that a one-time performance and retention incentive payment is hereby granted to eligible employees in the Executive and Management Groups, as set forth in the attached Exhibit "A". PASSED and ADOPTED this 25th day of January, 2011. Ron Morrison, Mayor ATTEST: Michael R. Della, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 25, 2011 AGENDA ITEM NO. 13 EM TITLE: City of National City Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2010 PREPARED BY: Jeanette Ladrido, CPA DEPARTMENT: PHONE: 336-4331 APPROVED BY: EXPLANATION: Transmitted herewith is the City of National City's Comprehensive Annual Financial Report for the fiscal year ended June 30, 2010 prepared by our external auditors, Mayer Hoffman McCann, P.C. The reports include all agencies under the control of the City Council including the Community Development Commission. The auditors have conducted their examination of the financial statements in accordance with generally accepted auditing standards and expressed a clean opinion of those statements. The Comprehensive Financial Report was completed and posted on the City's website January 2011. Copies may also be viewed in the City Clerk's office or the National City Public Library. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Accept and file. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: nprehensive Annual Financial Report as of June 30, 2010 CITY OF NATIONAL CITY Comprehensive Annual Financial Report For the Year Ended June 30, 2010 (This page intentionally left blank) C]'FY OF NATIONA1, CITY National City, California Comprehensive Annual Financial Report For the Year Ended June 30, 2010 1243 National City Blvd. National City, California 91950 Phone: (619) 336-4241 Fax: (619) 336-4239 www.nationalcityca.gov Prepared by the Finance Department Jeanette 1.adrido, CPA Finance Director (This page intentionally left blank) CITY OF NATIONAL CITY Comprehensive Annual Financial Report For the Year Ended June 30, 2010 TABLE OF CONTENTS INTRODUCTORY SECTION Page Letter of Transmittal Directory of City Officials vii CSMFO Award viii FINANCIAL SECTION Independent Auditors' Report 1 Management's Discussion and Analysis 3 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Assets 16 Statement of Activities 17 Fund Financial Statements: Goverrronerrtal Fund Financial ,S'tatenrerrts: Balance Sheet I9 Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets 22 Statement of Revenues_ Expenditures and Changes in Fund Balances 23 Reconciliation of the Governmental Funds Statement of Revenues_ Expenditures and Changes in Fund Balances to the Government -Wide Statement of Activities 25 Proprietary Puna' Financial Statements: Statement of Net Assets 26 Statement of Revenues. Expenses and Changes in Net Assets 27 Statement of Cash Flows 28 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Assets 29 Statement of Changes in Fiduciary Net Assets 30 Notes to the Basic Financial Statements CITY OF NATIONAL CITY Comprehensive Annual Financial Report For the Year Ended June 30.2010 TABLE OF CONTENTS, (CONTINUED) Page FINANCIAL SECTION. (CONTINUED) Required Supplementary Information: Notes to Required Supplementary Information 73 Budgetary Information Budgetary Comparison Schedule - General Fund 74 Budgetary Comparison Schedule Section 8 Housing Assistance Special Revenue Fund 75 Budgetary Comparison Schedule — Other Special Revenue Fund 76 Budgetary Comparison Schedule - Nutrition Program Special Revenue Fund 77 Budgetary Comparison Schedule - Sewer Service Special Revenue Fund 78 Budgetary Comparison Schedule — Low and Moderate income Housing Program Fund 79 Supplementary Information: Non -Major Governmental Funds: Combining Balance Sheet 83 Combined Statement of Revenues, Expenditures and Changes in Fund Balances 87 Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual 90-107 Internal Service Funds: Combining Statement of Net Assets Combining Statement of Revenues, Expenses and Changes in Net Assets Combining Statement of Cash Flows Fiduciary Funds: 109 111 113 Combining Statement of Changes in Assets and Liabilities - Agency Funds 116 CITY OF NATIONAL CITY Comprehensive Annual Financial Report For the Year Ended June 30. 2010 TABLE OF CONTENTS, (CONTINUED) STATISTICAL SECTION Net Assets by Component Changes in Net Assets Fund Balances of Governmental Funds Changes in Fund Balances of Governmental Funds Assessed Value of Taxable Property Taxable Sales by Category Direct & Overlapping Property Tax Rates Principal Property Tax Payers Property Tax Levies and Collections Ratios of Outstanding Debt by Type Direct and Overlapping Debt Legal Debt Margin Infonnation Pledged Revenue Coverage Demographic and Economic Statistics Principal Employers Full-time Equivalent City Government Employees by Function/Program Operating Indicators by Function/Program Capital Asset Statistics by Function Page 119 121 125 127 129 131 133 134 135 137 140 141 143 145 146 147 148 149 (This page intentionally left blank) INTRODUCTORY SECTION RNLA 0 ^rlat December 23, 2010 To the Honorable Mayor. Members of the City Council And the Citizens of the City of National City: The Comprehensive Annual Financial Report of the City of National City for the fiscal year ended June 30, 2010 is hereby submitted in accordance with Title 2.16.100(N) of the National City Municipal Code and section 25253 of the Government Code of the State of California. State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. The City is responsible for the accuracy, completeness, and fair presentation of this report. Under the direction of the City's Director of Finance our financial reports are prepared in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB). To the best of our knowledge and belief, the enclosed data are accurate in all material respects and are reported in a manner designed to present fairly the financial position and results of operations of the various Funds, account groups and component units of the City. It is believed that all disclosures necessary have been included in order to enable the reader to gain maximum understanding of the City's financial affairs as of June 30, 2010. As required by the City of National City Municipal Code, Title 2.16.100(N), the independent auditing firm Mayer Hoffman McCann, P.C. has reviewed the City's financial records and the internal control system. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of National City for the fiscal year ended June 30, 2010, are free of material misstatements. The audit firm of Mayer Hoffman McCann P.C., has issued an unqualified opinion on the City of National City's financial statements for the year ended June 30, 2010. The independent auditor's report is located at the front of the financial section of this report. The Report is organized into three major sections: Introductory Section: This section includes a table of contents, this transmittal letter and a City organizational chart. Financial Section: Statistical Section: This section includes the independent auditors' report, the management discussion and analysis report, the basic financial statements and the notes to these financial statements, followed by supplemental information. This section contains both financial and non -financial trend data about the City and its operations. In addition to meeting the requirements set forth in the City's Municipal Code, the City is required to have a Single Audit performed by our independent audit firm. The Single Audit was designed to meet the needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the City's internal controls and compliance with legal requirements, with special emphasis on internal controls and compliance with legal requirements involving the administration of federal awards. These reports are available in the City of National City's separately issued Single Audit Report. Generally Accepted Accounting Principles requires that management provide a narrative introduction. overview and analysis to accompany the basic financial statements in the form of a Management Discussion and Analysis (MD&A). This transmittal letter is designed to complement the MD&A and should be read in conjunction with it. The City of National City's MD& A is located in the Financial Section, following the independent auditor's report. GOVERNMENT The City of National City is located on the bay in San Diego County, bordered by the City of San Diego to the north, and the port of San Diego to the west. The nearly built -out city is home to a fairly constant population of about 61,115 residents over 9.2 square miles. The City of National City was incorporated September 17, 1887. It is a general law city and operates under the council-manager form of government. The City Council has five members who are elected at large for a term of four years. The citizens of National City also elect the City Treasurer and the City Clerk. The City Council is responsible for setting policies, passing ordinances, adopting the budget, appointing committees and appointing the City Manager. The City Manager is responsible for carrying out policies and ordinances of the City Council, appointing City Department heads and overseeing the day-to-day operations of the City. The City Manager also serves as executive director and secretary of the Community Development Commission of the City of National City and may delegate that authority. REPORTING ENTITY This report includes all funds of the City, as well as all of its component units. Component units are legally separate entities for which the City is financially accountable. ii Blended component units, although legally separate entities, are, in substance, part of the City's operations and are included in this CAFR as part of the City. Accordingly, the City of National City Joint Powers Financing Authority, the National City Parking Authority and the Community Development Commission of the City of National City are reported as part of the City. Discretely presented component units are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the City and to differentiate their financial position, results of operations and cash flows from those of the City. BOARDS AND COMMISSIONS The City Manager is committed to the support of government programs that can expand the City's ability to reach -out to the community. The National City Neighborhood Councils were implemented in 2005 and has greatly enhanced the citizen interaction with the City Services. The following boards and commissions are available for the citizens of National City to participate on as advisors to the Mayor and City Council: • Building and Advisory and Appeals Board - acts in matters related to the Building Code. • Civil Service Commission - recommends hears appeals of any person in the classified service relative to any suspension, demotion or dismissal. • Community and Police Relations Commission - a forum for citizens to voice their concerns about issues related to police -community relations. • Housing and Community Development Committee - members stay in touch with community attitudes, and identify the physical. social, and economic needs of National City. • Library Board of Trustees - acts in accordance with the Education Code; coordinates the activities of the City Library; advises the City Librarian on operational policies; approves warrants; and recommends to the City Council the adoption of rules and regulations. • Parks and Recreation Advisory Board - acts in matters of policy and administration of the city owned parks and the recreation programs operated in said parks. • Planning Commission - recommends the adoption, amendment. or repeal of a master plan or any part thereof for the physical development of the City. • Public Art Committee - advises the City Council on public art projects meant to increase the aesthetic value of parks, public buildings, and new development. The committee also promotes the City's substantial historical and cultural assets throughout the county. • Senior Citizens Advisory Board - acts in an advisory capacity in matters pertaining to seniors. iii • Street Tree and Parkway Committee - reviews and makes recommendations relative to the planting, removal, or transplanting of trees upon public property. • Traffic Safety Committee - reviews and makes recommendations concerning the safety of traffic. LOCAL ECONOMY The City of National City has an economic base composed of autos and transportation, general consumer goods, restaurants and hotels, fuel and service stations, business and industry, building and construction and food and drug stores. Due to the economic recession, the City's primary source of revenue, sales tax, has dropped from a high of over $16 million in 2004 to under $9 million in 2010. $20 - $16 0 F 12- $8 - $4 Sales Tax 2005 2006 2007 2008 2009 2010 Calendar Year Council and Administrative actions were taken to assist in balancing the budget, attain fiscal sustainability, and provide for efficient and transparent government. An employee -driven committee was established to brainstorm ideas to reduce internal costs. The Cost Reduction and Revenue Efficiency (C.A.R.E.) Committee publishes quarterly newsletters to encourage voluntary participation in such endeavors. The Purchasing Review and Personnel Review Committees were established to affirm fiscal responsibility in purchasing and hiring practices. In June 2006, National City voters approved Proposition D (District Tax), a 1 cent increase in local sales tax that will be effective until 2016. It has been projected that the district tax would generate $7-$9 million annually. The revenues from the district tax temporarily fix the fundamental problem of more money going out than coming in. It also challenges National City to become proactive in building stable and diverse revenue sources within the next five to ten years to achieve financial sustainability. The last major revenue generating developments, Plaza Bonita Mall and the Mile of Cars, occurred over 20 years ago. Efficiency, vision and innovation are necessary to reverse the current stagnation. LONG TERM FINANCIAL PLANNING The City is currently working on a comprehensive update of its general plan. The general plan serves as a blueprint for growth and the associated impacts. National City is rich in infrastructure and has the foundation to grow through infill opportunities and increased mobility. The smart growth goals and principals established in the general plan will be implemented through a series of neighborhood action plans. These action plans will utilize iv city resources and leverage them with grants and other funding sources to build healthier and safer neighborhoods. The City's capital resources are prioritized and distributed through a five year capital improvement program. (C.I.P) Developing the C.I.P. will be done concurrently with the development of the general plan. All capital projects must be found consistent with the general plan to ensure a commitment to the long range plans set forth by the community. BUDGETARY CONTROLS The City maintains budgetary controls at the individual fund level. The objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. The budget includes estimated revenues and appropriations for the City's funds categorized into six fund types including one general fund, special revenue funds, debt service funds, capital projects funds, enterprise funds and all internal service funds are included in the annual appropriated budgets of the City. Using the City's automated accounting system, each City department's expenditures are restricted to the amount of that department's budgeted appropriations for the year at the object level. No department is allowed to spend more than its available appropriations. Changes in appropriations in excess of a department's total appropriation or fund balance or unrealized revenues must be approved by the City Council as a transfer from contingency reserve, transfer from another department, or as an appropriation of unanticipated or over - realized revenue identified to a specific source. There is no "floor" in the level amount requiring approval. CASH MANAGEMENT POLICIES AND PRACTICES The investment operations of the City are under the direction of the City Finance Director. The City Treasurer and the Finance Director share investment policy review. operations and approval. On an annual basis, the City's investment policy is reviewed and approved by the City Council. The Finance Director and Financial Services Officer monitor cash balances daily and invest temporarily idle funds in accordance with the California Government Code and the City's Investment Policy. The City employs a pooled cash system for various City funds to maximize interest income. Investment earnings are distributed based on average cash balance. RISK MANAGEMENT The City is self -insured for its general liability exposures up to $250,000 per occurrence and for its Workers' Compensation up to $500,000 per claim. As a member of the San Diego Pooled Insurance Program Authority (SANDPIPA), the City is insured for general liability between $250,000 and $2 million. For general liability claims in excess of the pooled layer, the City purchases excess liability insurance through SANDPIPA with limits up to $37 million per occurrence. The City also obtains its first party, all-risk property insurance and crime bond/fidelity coverage through SANDPIPA. In addition, the City participates in the County v Supervisors' Association of California Excess Insurance Authority (CSAC-EIA) which enables it to purchase excess Workers' Compensation coverage for its large and catastrophic claims. ACKNOWLEDGMENTS The preparation of this Comprehensive Financial Report could not have been accomplished without the professional and dedicated service of the staff of the Finance department and the assistance of the City's auditors, Mayer Hoffman McCann, P.C. We sincerely thank you for a job well done. In addition, we acknowledge and appreciate the continued support of the Mayor and members of the City Council in the commitment to fiscal integrity and financial leadership. Sincerely, 31- '-yas Chris Zapata City Manager Jeanette Ladrido, CPA Director of Finance vi NCO Rpoi-L IAA It -Tv FD ) DIRECTORY OF CITY OFFICIALS City Council Ron Morrison Mayor Alejandra Sotelo-Solis Vice Mayor Jess Van Deventer Council Member Rosalie Zarate Council Member Vacant Council Member City Manager Chris Zapata City Treasurer Mitch Beauchamp City Clerk Michael R. Dalia Assistant City Manager Leslie Deese City Attorney George H. Eiser Community Development Commission Executive Director Brad Raulston Department Heads Minh Duong City Librarian Vacant Director of Community Development Brenda Hodges Director of Community Services Frank Parra Director of Emergency Services Maryam Babaki Director of Engineering Jeanette Ladrido, CPA Director of Finance Stacey Stevenson Director of Human Resources Joe Smith Director of Public Works Dr. Adolfo Gonzales Police Chief v i i — NATioNaciT INCARI,RATED California Society oPetunicipa Timm; Certificate or ard FOE Excellence in Operating Bwlgeting Fiscal Year 2009-2010 railAvya See,ch 5,rketatt Mnr,17,71,43 CSKIA, City of National City rstohinke, ac AA-, nee -1...1( Lie ?Ty flPF N 1 6,4., F, brizary IS, 2910 The California Society of Municipal Finance Officers (CSMFO presented the City of National City the Certificate of Award for Outstanding Financial Reporting for the Fiscal Year ending June 30, 2009. The California Society of Municipal Finance Officers (CSMFO presented the City of National City the Certificate of Award for Excellence in Operating Budgeting for Fiscal Year 2009-10. Lary -Urn ia Sac Lety ot !Municipal :Tina ice fl.)Ificel.5 crigicoic Onatanding !Mancha Reporting for The Fiscul rear Ottling June 30, 2009 yin (11:1of .N...alioncit 18, 2010 (This page intentionally left blank) FINANCIAL SECTION der Hof-trnan i' 1cCanr An Independent CPA Firm 2301 Dupont Drive, Suite 200 Irvine, California 92612 949-474-2020 ph 949-263-5520 Ix wvW .mhrn-pc-cum To the Honorable Mayor and Members of the City Council of the City ofNational City, California INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of National City, California (City), as of and for the year ended June 30, 2010, which collectively comprise the City's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2010, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. The information identified in the accompanying table of contents as management's discussion and analysis and required supplementary information are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. 1 To the Honorable Mayor and Members of the City Council of the City of National City, California Page Two Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. In accordance with Government Auditing Standards, we have also issued a report dated December 23, 2010 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with .on Auditing Standards and should be considered in assessing the results of our audit. Irvine, California December 23, 2010 s�,4, GAtIFORNIuL.»^ %AT>CONA1 Cfl'y O1I ixcoavonniro As management of the City of National City, we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City of National City for the fiscal year ended June 30, 2010. We encourage readers to consider the information presented here in conjunction with additional information that has been furnished in the letter of transmittal, which can be found in the introductory section of this report. • The City's assets exceeded its liabilities at the close of fiscal year 2010 by $169,455,369 (net assets). Of this amount, $7,832,285 (unrestricted net assets) is for unrestricted uses in accordance with finance -related legal requirements reflected in the City's fund structure. • The City's total net assets decreased by $3,358,962 or -1.9%. Net assets of governmental activities decreased by $2,575,545 and net assets of business type activities decreased by $7,83,417, • As of the close of fiscal year 2010. the City's governmental funds reported combined ending fund balances of $80,678,584, a decrease of $3,640,189 in comparison with the prior year. Total fund balance is broken -up as follows: BALANCE SHEET Governmental Funds Reserves $29, I38,132 (36%) Unreserved S51,540,452 (64%) Designated S36,133,099 (45%) tlndesignated S15,407,353 (19%) • At the end of the current fiscal year, the contingency reserve fund balance for the General Fund was 8,616,444 or 24% of general fund expenditures. The prior year balance was $7,200,000. • The City's total long-term debt had a net decrease of $687,626. In FY 09-10, the City entered into a lease agreement with Municipal Finance Corporation to fund a City wide energy retrofit program. The total capitalized lease obligation was $1,755.160. • National City residents approved an additional 1% district tax in 2005. It has been projected to generate additional revenue of $7 to $9 million Despite the nation-wide resection the City of National City was able to maintain fiscal sustainability during the fiscal year 2010 through the passing of Prop. D (Also called Prop. M on 2008 ballot), which implemented a PA district tax rate. In fiscal year 2010, the district tax brought in $7.9 million. 3 NATION/It CITY FRtORWOFASSU This discussion and analysis is intended to serve as an introduction to the City of National City's basic financial statements. The City of National City's basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. In addition to the basic financial statements, also provided is other supplementary information. (Refer to figure A-1) Government -Wide Financial Statements The government -wide financial statements are designed to provide readers with a broad overview of the City of National City's finances, in a manner similar to a private -sector business. The Statement of Net assets (the "Unrestricted Figure A-1 Net Assets") is similar to a bottom line for the Required Components of City and its governmental and business -type City of National City's Annual Financial Report activities. This statement reports all of the governmental fund's current financial • resources (short-term spendable resources) with capital assets and long-term obligations. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of National City is improving or deteriorating. illannyement's ,Discussion and Analysis The Statement of Activities presents information to show how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation / Basic Financial Statements Required Supplementary Information Government - wide Financial Statements Fund Financial Statements Notes to tie Tmanaaatatements Summary leave and sick leave). Detail Both of the government -wide financial statements distinguish services of the City of National City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of National City include general government, public safety, transportation, health. culture 4 -CAL FORgtq: NATIONAL Cf y MCORkolv'T o and Leisure, and community development. The business -type activities of the City of National City include the community development commission. The basic government -wide financial statements can be found in the accompanying comprehensive financial report. Fund Financial Statements A fund is a grouping of related accounts used to maintain control over resources that have been segregated for specific activities or objectives. The City of National City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds used by the City of National City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds are used to account for essentially the same functions reported as govermmental activities in the government -wide financial statements. Governmental fund financial statements focus on near term inflows and outflows of spendable resources. as well as on the balances left at year end that are available for spending. Consequently. the governmental fund financial statements provide a detailed short-term view that helps the reader determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. Because this information does not encompass the long-term focus of the government -wide statement, additional information is provided that reconciles the governmental fund financial statements to the government -wide statements explaining the relationship (or differences) between them. The City maintains 149 individual governmental funds, which includes 7 funds maintained by the Community Development Commission. Information is presented separately in the government fund balance sheet and in the governmental fund statement of revenues' expenditures and changes in fund balance for the General Fund, Human Services Special Revenue Funds, Capital Project Funds, each of which are considered to be major funds. Data from the remaining not mentioned funds are combined into a single aggregate presentation. Individual fund data for these major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for its Funds. A budgetary comparison statement has been provided to demonstrate compliance with this budget. Except for the Community Development Commission funds, the City maintains an automated budgetary accounting system to restrict expenditures to established appropriations and to recognize yearend commitments (encumbrances) in the financial statements. Proprietary Funds. The City of National City maintains two different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City uses enterprise funds to account for the Kimball Towers and Morgan Towers. Internal Service Fund is an accounting device used to accumulate and allocate costs internally among the 5 NATIONAL City 1131 1NGOR11OAAT15D A.N City's various functions. The City uses internal service funds to account for its vehicle operations, workers compensation insurance, general liability insurance, separation benefits, accounting services and technology development. The internal service funds predominantly benefit governmental rather than business -type functions; therefore they have been included within governmental activities in the government -wide financial statements. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate infomation for the Kimball Towers and Morgan Towers, each of which are considered to be major funds of the City of National City. Date for the additional enterprise funds and all of the internal service funds are combined into their respective single aggregated presentations. Individual fund data for the non -major enterprise funds and all internal service funds is provided in the form of combining statements elsewhere in this report. Fiduciary Funds. The City uses fiduciary funds to account for assets held on behalf of outside parties. The City of National City's fiduciary funds reflect activity related to retiree medical and dental insurance premiums and refundable customer deposits for performance. Fiduciary funds are not reflected in the government -wide financial statement because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Notes to the Basic Financial Statements he notes to the basic financial statements provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the basic financial statements can be found in the financial section of this report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of National City's progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found in the financial section of this report. The combining statements referred to earlier in connection with non -major governmental funds and internal service funds are presented immediately following the required supplementary information. As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of National City, assets exceeded liabilities by $162,838,989 at the close of the most recent fiscal year. 6 ASI° M1l: Lr CITY • LOW.. 0.TE0 A portion of the City's net assets $7,832,285 (5%) is unrestricted and may be used to meet the City's ongoing financial obligations. These are net assets that are not restricted by external requirements nor invested in capital. Of the City's $169,455,369 in net assets. $104.489,076 (62%) reflects investment in capital assets (e.g., land, buildings, machinery. and equipment). The City of National City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of National City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Net assets of the City also include $57.134,008 of restricted net assets. These are assets representing resources subject to external restriction as to how they may be used by the City, The following reflects the City of National City's net assets: Summary of Net Assets ($ thousands) 2010 2009 2010 2009 2010 2009 Current and other assets $ 1 1 1,785,361 $ 104,686 916 R 1,960 276 5 2,397,137 $ 113,745,637 $ 107,084,053 Capital assets 120,874,728 121,154,824 7,629,909 8,027,839 128,504,637 129,182,663 Total assets 232,660,089 225 841,740 9.590185 10,424,976 242,250,274 236,266,716 Long-term liabilities outstanding 63,348,301 63,854,003 2,917,546 2,673,586 66.265,847 66,527,589 Other liabilities 6,529,058 6,604,804 435,884 295,334 6,964,942 6,900,138 Total liabilities 69,877,359 70,458,807 3353,430 2,968,920 73,230,789 73,427,727 Net assets Invested in capital assets, net of related debt 99,340,829 98,809386 5,148,247 5,354,253 104,489,076 104,163,639 Restricted 55,609,616 48,092,405 1,524.392 2,101,803 57,134,008 50,194,208 Unrestricted 7,832,285 8,481,142 - - 7,832,285 8,481,142 Total net assets $ 162,782,730 $ 155,382,933 6,672,639 7,456,056 $ 169,455,369 $ 162,838,989 As in the prior fiscal year, the City of National City reported positive balances in all three categories of net assets for the government as a whole and the separate governmental and business -type activities. 7 LiF9 N i ON C ' IXCUBF{1RAT E8 -' The following reflects the City of National City's Changes in Net Assets: Activities Activities Governmen 2010 2009 2010 2009 2010 2009 Revenues Program revenues. Charges for services $ 14,256,336 $ 12,558,790 $ 2,063,715 $ 2,041,477 $ 16,320,051 $ 14,600,267 Operating grants and contributions 21,051,606 20,674,207 - 21,051,6(16 20,674,2(17 Capital grants and contributions - - - General Revenue- Property tax 9,983,799 15,827 505 - - 9,983 799 15 827,505 Sales and Use tax 18,872,987 20,700,283 - - 18,872,987 20 700,283 Franchise tax 1,941,081 1,737,134 - - 1,941,081 1,737,134 Other taxes 5,907,602 6,000,666 - - 5907,602 6,000,666 Investment eamines 572;489 1,425 385 6,943 23,995 579 432 1,449,380 Other Miscellaneous revenues 461,101 270,269 461,101 270,269 Rent 763,157 733,454 - - 763,157 733,454 Transfers - - - - - Total Revenues 73 810,158 779 927,693 2,070,658 2,065,472 75,880,816 81 993,165 Expenses: General goverrunent 6,774,769 5,24,693 - - 6,774,769 5.224,693 Public safety 32,426.770 39,670,520 - - 32,426,770 29,670,520 Transportation 2,966,635 7735716 - - 2,966,635 7,735,716 Community development 17 679,675 17 049,437 - 17,679,675 17 0494 37 Health 7,775,510 5 963,766 - - 7,775,510 5,963,766 Culture and leisure 6,238,223 6,928,456 - - 6,238,223 6,928,456 Interest and fiscal charges 2,524,121 2525,568 - - 2,524,121 2,525,568 TDA - Community Development Commission 2,854,075 2,191,014 2,854,075 2.191,014 Total Expenses 76,385,703 75,098,156 2,854,075 2,191,014 79,239,778 77,289,170 Increase(decrease)in net assets before transfers (2.575,545) 4,829,537 (783,417) (125,542) (3,358,962) 4,703.995 .transfers - - - - Increase (decrease) in net assets Net assets - Beginning of Year (note 11) Net assets - End of Year (2,575545) 4,829,537 (783,417) (125,542) (3,358_962) 4,703,995 165158275 150,553,396 7,456,056 7,581,598 172,814331 158,134,994 $ 162,782,730 $ 155,382,933 $ 6,672,639 $ 7,456,056 8 169,455,369 $ 162.838,989 Governmental Activities Governmental activities decreased the City of National City's net assets by $2.575.545 causing a 1.5 percent decrease in the primary government's net assets. Key elements of this increase are as follows: • Total governmental revenue decreased by $6.I million or 7.6 percent from fiscal year 2009. This change was a primarily attributable to decreases in property tax revenue ($5.8 million) and sales tax ($1.8 million). 8 s[ 0AALIFORNIA.-"e �ej' NN IONNL f # .X MCOR1•011.4,,0 Program Expenses - Governmental Activities Intete3 and fiscal Culture and leisure charges 8% /o n. � 11ea th 10"/0 Community Development 23" /0 General Go% eminent Expenses and Program Revenues- Governmental Activities $,o r00ft0(%l $25,000.000 $20 000,000 $15000,000 $10,000.000 $5 000_000 ks oJ� �,G 6�� ¢\ o '9z .-NC''' �� 'S�ro .� ill Expenses Prograrn Revenue nr S�i''S Intergovernmental revenues are grants and other revenues received from the state and federal government. Licenses and permits include amounts collected from the issuance of licenses and permits required by the City of National City for various purposes. Revenues from fees collected by the City for a variety of services provided to the public are recorded as charges for services. Investment income reflects revenue from investment activity. Other revenue includes rent proceeds from the leasing of various government buildings. 9 IONAL CtTy • �'NCOAYOAAS Revenue By Source - Governmental Activities Operating Grants Property Faxes 28% v:r-..: x,;_:ra 14% Charges for Services 19% Other 40 Motor Vehicle 6% Sales and Use Taxes 26% Franchise Taxes 3% Business -type Activities The City's only current business type activity is the community development commission. Revenue By Source - Business -Type Activities Investment Earnings 0.3% 10 Charges for Services 99.7% r �'^^ oki�lFootiut— N1X,1O L4fl r McnRroAAT£O As noted earlier, the City of National City uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental Funds The focus of the City's governmental funds is to provide information on current year revenue, expenditures, and balances of spendable resources. Such information is useful in assessing the City of National City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. Governmental Funds report the difference between their assets and liabilities as find balance, which is divided into reserved and unreserved portions. The function of reserved fund balance is simply to isolate the portion of fund balance that is unavailable for the following period's budget. The unreserved fund balance can serve as a measure of current available financial resources. City Council may commit a portion of the unreserved fund balance by designation of fund balance to an intended future use. As of the fiscal year ended June 30, 2010, the City of National City's governmental funds reported combined ending fund balances of $80,678,584. a decrease of $3,640,189 in comparison with the prior year. Approximately 64 percent of the total fund balance amount. or $51,540,452, constitutes unreserved fund balance, $36.133,099 of this has been designated for specific purposes by City Council. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed 1) to liquidate contracts and purchase orders of the prior period ($1,085,633), 2) to pay debt service ($7,534,181), for land held for resale ($10,267,509), 4) for long term loans receivable ($8,187,427) and 5) for advances from other funds ($2,063,382). The General Fund is the chief operating fund of the City. For the fiscal year ended .tune 30, 2010, unreserved fund balance of the General Fund was $10,699,617 while total fund balance was $ 11,826,025. As a measure of the General Fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 29 percent of total General Fund expenditures compared to 47 percent in the prior year. Total fund balance represents 32 percent of the General Fund expenditures while the prior year was at 50 percent. The total fund balance of the City's General Fund decreased by $6,614,663 or 56 percent, during the fiscal year ended June 30, 2010. Key factors in this increase are as follows: • Overall revenues decreased by $3.6 million or 10 percent from the prior year. This decrease is mainly attributed to lower than anticipated property tax and sales tax. Automobile sales and building material sales decreased from the prior year. 11 1 EFi1h�F�TA,N HjyIA (n—rajt� L F ARTORRRLD Az'\ , ft • Interest and Rent Revenue decreased $1,056.699. This decrease is mainly attributed to the decrease in interest revenue. Over 65% of the City's cash flow is invested in the State of California's Local Agency Investment Fund (LAIF). Over the past year, LAIF's annual yield in FY 08-09 was 2.224% and in FY 09-10 was .651%. The Sewer Service Fund has an ending fund balance of $16,073,658, of which $87,809 is reserved for encumbrances and $1,500,000 was advanced to another fund. The unreserved, designated fund balance consists of the following 1) $5,406,132 in continuing appropriations, 2) $3,184,801 for rate stabilization, 3) $338,946 in contingency reserves and 4) $2,727.746 for the State Water Resource Control Board requirements. The Community Development Commission Debt Service Fund has a total fund balance of $4,771,650. For the year ended June 30, 2010 $826,093 was transferred in from other governmental funds to provide funding to cover debt service payments made during the fiscal year that related to low and moderate development. The net change in fund balance during the current year in the debt service fund is 616.836 or 13 percent increase from the prior year fund balance of$4.154.814_ Proprietary Funds The City of National City's proprietary funds provide the same type of information found in the government -wide financial statements. but in more detail. Total net assets for the Kimball Towers, and Morgan Towers Funds amounted to $6,366,288 and $1,089,768; respectively. The total net income (loss) for each fund before transfers was ($126,614) and $1,072; respectively. Kimball Towers and Morgan Towers Funds account for activities relating to the operations of Kimball and Morgan Towers. which provide housing to low and moderate income seniors. For the year ended June 30. 2010 total operating revenue for Kimball Towers and Morgan Towers amounted to $887.828 and $1,175.887; respectively. Kimball Towers operating expenses increased by $361,104 or 26 percent from the prior year. while Morgan Towers operating expenses increased by $301,154 or 24 percent from the prior year. Other factors concerning the finances of these funds have already been addressed in the discussion of the City of National City's business -type activities. Differences between the General Fund original budget and the final amended budget include significant changes in the revenue and expenditure amounts. 12 tAyroginA ONAL.CIa 13J'f"" t±:rnaTcmarca Original revenue estimates for the fiscal year 2009-10 were based on a predicted economical recession. Actual total General Fund revenues were less than the final budgets estimated amount by $972,745. The variance between actual and estimated revenue is mainly attributed to actual revenue produced by taxes. The district tax (Proposition D) continues to meet the projections of $7-$9 million in revenue however; sales tax has decreased significantly due to the slowing economy. The General Fund actual total expenditures did not exceed final budgeted appropriations. The variance between actual total expenditures and the final appropriation was $2.2 million or 6 percent. Negative variances occurred in the debt service in principal expenditures by 36,802. Ending Fund Balance exceeded the final budget estimated ending fund balance by $3,343,387 or 28.2 percent. General Fund actual end of year fund balance was $ 1 1.826,025. Capital Assets The City's capital assets for its governmental and business type activities as of June 30, 2010, amounted to $120,874,728 (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, machinery and equipment and infrastructure (including streets, alleys, traffic signals and signs and bridges) of governmental activities. Infrastructure type assets of business -type activities are reported as buildings and improvements. The City's capital assets by activity at June 30, 2010 were as follows: Governmental Business -type 'rolal Priman' Activities Activities Government 2010 2009 2010 2009 2010 2009 Land $ 20,025598 $ 20,025,598 S 528,382 S 528,382 5 20,55 ,980 $ 20,553,980 Right of way 4,245.088 4,245,088 4,245,088 4,245,088 Construction in progress 5,078,125 3,106,170 5.078,125 3,106,170 Buildings and improvements 44,343,967 44,343,967 15.684,584 15.654,166 60.028.551 59,998,133 Machinery and equipment 14,070.632 12.838,883 462,153 462,153 14,532,785 13,301,036 Infrastructure 111,876,502 110,333,302 - 111,876,502 110,333,302 Less accumulated depreciation 78.765,184 73,738,184 9045210 8,616,862 87,810.394 82,355,046 Iota' $ 120,874,728 5 121,154,82.1 5 7,629,909 5 8,027,839 5 128,504.637 $ 129,182,663 Major capital asset activity during the year ended June 30, 2010 includes the following: • Various street resurfacing projects • Marina Gateway construction • Safe Routes to School projects 13 Additional information on the City's capital assets can be found in the financial section of this report (Note 5). Long -Terns Debt At year-end the City had a total long-term debt of $63,836,005, a decrease of $2,665,996 from the prior year. These include $3,605,000 of Lease revenue refunding bonds issued by National City Joint Powers Financing Authority (NCJPFA) and $39,680,000 of tax allocation bonds applicable to Community Development Commission. The City of National City's general obligation bond is rated A- by Fitch and Standard & Poor's rating agencies. Governmental Business -type Total Primary Activities Activities Government 2010 2009 2010 2009 2010 2009 NCJPFA: Lease Revenue Refunding Bonds $ 2,935.000 $ 3.605.000 $ - $ $ 2,935,000 $ 3,605 000 Community Development Convulsion' 1999 Tax Allocation Bonds 3,965,000 4.210 000 - - 3,965,000 4.210,000 2004 Tax Allocation Bonds 4,345.000 4.885.000 - - 4345,000 4,885,000 2005 Series A and B Tax Allocation Bonds 26,620,000 30_585.000 - - 26,620.000 30,585,000 General Obligation Bonds 5,120.000 5,410.000 - - 5.120,000 5,440,000 HUD 108 Bond 2003 A 5,505,000 5975,000 - - 5505,000 5,975,000 Total Bonds - - - Claims Payable 4,286,256 4.825 000 - 4,286,256 4,825,000 Compensated Absences 1.053,748 3,176.653 - - 1,053,748 3,176,653 Other posternp!ovnlent Benefits 53,795 34,621 53,795 34,624 Capitalized Lease Obligations 2,423,051 1099,728 - 2,423,051 1,099,728 Notes Payable - - 2,276,886 2,673.586 2,276,886 2,673,586 Total $ 56,306,850 $ 63,836,005 $ 2,276,886 $ 2,673.586 $ 58,583,736 $ 66,509,591 Additional information on the City of National Citys long-term debt can be in the financial section of this report (Note 7). This financial report is designed to provide a general overview of the City of National City's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, 1243 National City Boulevard, National City, California, 91950-4397. 14 Basic Financial Statements 15 CITY OF NATIONAL CITY Statement ofNet Assets June 30, 2010 Governmental Business -Type Activities Activities Total Assets Current assets: Cash and investments (note 2) $ 70,996,470 84,989 71,081,459 Accounts receivable 3,914,955 490 3.915,445 Property tax receivable 256,947 256,947 lnterest receivable 127,976 - 127,976 Due from other governmental entities 5.073,009 5,073,009 Total current assets 80,369,357 85,479 80,454,836 Noncurrent assets: Restricted assets: Restricted cash and investments with fiscal agents (note 2) 5.055,261 1,717.538 6,772,799 Inventories 14,649 - 14.649 Prepaid items and deposits - 157,259 157,259 Land held for resale 10,267,509 10,267,509 Contracts, notes and loans receivable (note 4) 16,076,692 16,076,692 Subtotal 31,414,111 1,874,797 33.288,908 Capital assets (note 5): Non -depreciable 29348,811 528,382 29,877,193 Depreciable, net 91,525.917 7,101,527 98,627,444 Total capital assets 120,874,728 7,629,909 128,504,637 Total noncurrent assets 152.288,839 9,504,706 161,_793545 Total assets 232,658,196 9,590,185 242,248,381 Liabilities Current liabilities: Accounts payable and accrued liabilities Interest payable Salaries payable Deposits payable Total current liabilities Lone -term liabilities (note 7): Due within one year Due beyond one year Total noncurrent liabilities Total liabilities 4,581.120 298,727 1.369,408 279,803 6,529,058 7,041,451 56.306,850 63,348,301 69,877,359 322,295 4,903.415 298,727 24,714 1.394,122 88,875 368.678 435,884 6,964,942 204,776 7,246,227 2,276,886 58,583,736 2,481,662 65,829,963 2,917,546 72.794,905 Net Assets Invested in capital assets, net of related debt 99,340,829 5,148,247 Restricted for: Community development 43.423.854 Public Safety 1,018.272 Transportation 1,691.115 Culture and leisure 5,394,040 I lousing 1,079,035 1,524,392 Total restricted 55,609,616 Unrestricted 7,832,285 Total net assets $ 162,782,730 6,672,639 104,489,076 43.423,854 4,018,272 1.694,415 5_394.010 2.603,427 1.524.392 57.134,008 See accompanying notes to the basic financial statements. 7.832,285 169.45 5.369 16 CITY OF NATIONAL CITY Statement of Activities For the Year Ended June 30, 2010 Expenses Program Revenues Operating Capital 7 otal Charges for Grants and Grants and Program Services Contributions Contributions Revenue Primary Government: Governmental activities: General government $ 6,774,769 3,624,978 54.383 3,679,361 Public safety 32,426,770 1,976,414 3,410,980 - 5.387.394 Transportation 2,966,635 - 2,967,617 - 2,967,617 Community development 17,679,675 625,194 12,757,100 - 13,382,294 Health 7,775,510 7,258,317 563,807 - 7,822,124 Culture and leisure 6,238,223 771,433 1,297,719 - 2,069,152 Interest and fiscal charges 2,524,121 Total governmental activities Business -type activities: Community' development commission Total business -type activities Total primary government 76,385,703 14,256,336 21,051,606 2,854,075 2,063,715 2,854,075 $ 79,239,778 35.307,942 2,063,715 2,063,715 - 2,063,715 16,320,051 21,051,606 37371,657 General revenue and transfers: Taxes: Property taxes. net Sales taxes Franchise taxes Motor vehicle in -lieu. unrestricted Transient occupancy taxes Total taxes Investment earnings Other miscellaneous revenues Rent Total general revenues Change in net assets Net assets at beginning of year. as restated (note 12) Net assets - end of year See accompanying notes to the basic financial statements_ 17 Net (Expense) Revenue and Changes in Net Assets Governmental Business -Type Activities Activities Total (3,095,408) - (3.095.408) (27,039,376) (27,039.376) 982 - 982 (4.297.381) - (4,297.381) 46,614 - 46.614 (4,169,071) (4.169.071) (2,524.121) - (2,524,121) (41.077,761) - (41.077,761) (790,360) (790.360) (790,360) (790,360) (41.077.761) (790,360) (41,868,121) 9,983,799 9,983,799 18.872,987 - 18.872,987 1941.081 1.941.081 5,181,701 - 5,181.701 725,901 - 725,901 36,705,469 36,705,469 572.489 461.101 763.157 6,943 579,432 461,101 763,157 38,502.216 6.943 38,509,159 (2,575,545) (783,417) (3,358,962) 165,358,275 7,456,056 172,814,331 $ 162,782,730 6,672,639 169.455,369 18 CITY OF NATIONAL CITY Balance Sheet Governmental Funds June 30, 2010 Special Revenue Funds Section 8 Other General Housing Special Nutrition Fund Assistance Revenue Program ASSETS Cash and investments (note 2) $ 9,024,317 1.142,448 9,307,407 32,077 Restricted cash and investments with fiscal agents (note 2) - - Accounts receivable 731,539 45.616 24,930 112,163 Property tax receivable - Interest receivable 64.196 3.463 - Due from other funds (note 3) 1,636,843 106 - Due from other govermnental entities 2,919,636 1,123.885 Land held for resale - Contracts, notes and loans receivable (note 4) - Advances to other funds (note 3) - 563,382 Total assets 5 14,376,531 1.188,170 11,023,067 I44240 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 849,314 71,636 334,809 7,792 Salaries payable 975,789 21.615 135,271 52,531 Due to other funds (note 3) 15,884 938,116 - Deposits payable 150,120 104,683 - Deferred revenue 13.794 29,251 - Advances from other funds (note 3) 563,382 Total liabilities 2,552,399 109,135 1,542,130 60,323 Fund balances (deficit): Reserved: Encumbrances 197,797 9,600 338 Advances from other funds - - 563.382 - Land held for resale - - - - l.ong-term loans receivable - Debt service 928,611 - Total reserved 1,126,498 - 572,982 338 Unreserved. designated: Continuing appropriations 767,234 - 6,825,857 Employee accrued benefits 1,256,040 - Other 59,899 - Rate stabilization - - Continuing C1Ps - Contingencies 8,616.444 - - Total unreserved, designated 10.699,617 - 6,825,857 Unreserved, undesignated General fund - - Special revenue funds - 1.079.035 2,082.098 83.579 Capital projects funds - - Total unreserved, undesignaled - 1.079,035 2,082,098 83.579 Total fund balances 11,826,025 1.079.035 Total liabilities and fund balances $ 14-378,424 1,188,170 See accompanying notes to the basic financial statements. 19 9.180,937 83.917 11.023.067 144,240 Debt Capital Special Revenue Funds Service Project Low and Community Funds Other Total Sewer Moderate Income Development Redevelopment Governmental Governmental Service Housing Program Commission Fund Funds Funds 14,49 1,934 7.598.805 3,635.561 1.697.859 9,909.699 56.840.107 - 2.677.291 35.619 1,094.028 3,806,938 54,357 - - 2.571.068 301.000 3_840,673 49.691 198.766 8,167 323 256,947 26.107 12,544 6,117 2.869 12,680 127,976 15.884 124.561 1.777,394 53,156 - - 2,796 973,536 5,073,009 360,000 - 9.032,509 875,000 10,267,509 - 12,757.954 298,287 3,020,451 16.076.692 1,500,000 - - - 2,063.382 16,125,554 20,778,994 6,517,735 13,665,058 35,293 12.346 1,746,085 16,603 2.790 7,889.265 51,896 7.904.401 87.809 802 1,500,000 360.000 4.868,689 1,587,809 5.229,491 5,406,132 149.763 2,727,746 3,184,801 338,946 11,657,625 16,31 1,278 100,130,627 553,494 558,957 4,169,726 52.361 60,592 1,317,552 106 823.288 1,777,394 25,000 - 279,803 62,500 1,851,269 9,846,079 739,966 760,034 2,063,382 1,746.085 1.433,427 4,771,650 4,054.140 19.453,936 650,129 139,158 1,085.633 2,063,382 9,032,509 875,000 10,267,509 298.287 3,020.451 8,187,427 1,833,920 7,534,181 4,771,650 9,980,925 5,868.529 29,138,132 615.738 5,684.499 19,449,223 1,256,040 2,787,645 3,184,801 500,000 9,455,390 149.763 - 1,115,738 2,828,224 7.495339 1.134,968 2,828,224 7.495.339 - 1,134,968 16,073.658 12.87,159 3 16,125,554 20.778.994 4,771,650 12.231.611 6,517.735 13.665,058 20 5.684,499 36,133,099 2.083 263 (1.379,153) 15.651,538 (244,185) 704,110 15,407,353 12,257,138 80,678,584 16.311,278 100,132.520 (This page intentionally left blank) 21 CITY OF NATIONAL CITY Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets June 30, 2010 Fund balances of governmental funds $ 80,678,584 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the govenunental funds balance sheet. Excluding the internal service funds capital assets which are reported below, capital assets were adjusted as follows: - Capital assets - Accumulated depreciation Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in the governmental funds balance sheet. Certain revenues were not available to pay for current -period expenditures and, therefore, were deferred in funds. Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the internal service funds were included in governmental activities in the government -wide statement of net assets. Long -terra liabilities were not due and payable in the current period. Therefore, they were not reported in the governmental funds balance sheet. This amount excludes Tong -term liabilities reported in Internal Service funds. 192,379.031 (73,361.538) (298,727) 9,816,079 9,099,883 (55,530,582) Net assets of governmental activities $ 162,782,730 See accompanying notes to the basic financial statements. 22 CITY OF NATIONAL. CITY Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2010 Special Revenue Funds Section 8 Other General Housing Special Nutrition Fund Assistance Revenue Program Revenues: -- -- — _ - Taxes 1 29,007351 - Licenses and permits 551,517 - 4,200 - Fines and forfeitures 1,219,418 - 92560 Interest and rents 432,226 - 28.087 Intergovernmental 571,308 9,704,442 5,916,896 338.373 Charges for services 482,975 - 1,439,267 Other revenues 593,968 75 602,980 206,036 Total revenues 32,858.763 9-704.517 8,113.990 544,409 Expenditures: Current: General government 4,578,197 Public safety 28,402,451 Transportation 1,777,073 Community development - Health Culture and leisure 1,828,785 Capital outlay 301,404 Debt service: Principal 261,174 Interest and fiscal charges 23,962 Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): 'Transfers in (note 3) Transfers out (note 3) 9,418.147 37,173,046 9.418.147 1,853 392 2,2 74,13 5 216,964 128,004 1.645 287 15,838 791,032 6,133,620 791,032 (4.314,283) 286.370 1.980.370 (246.623) 3.047,887 (5.348.267) 608,152 2,047.464 (1,117.756) 1,716,103 Total other financing sources (uses) (2,300,380) 608,152 929,708 1,716,103 Net change in fund balances (6,614,,663) 894,522 2,910.078 1,469,480 Fund balances (deficit), beginning of year, as restated (note 12) 18.140,688 184.513 Fund balances, end of tear 5 11,826,025 1,079.035 9,48(1937 83.917 6,570,859 (1,385,563) See accompanying notes to the basic financial statements. 23 Debt Capital Special Revenue Funds Service Project Low and Community Funds Other Total Sewer Moderate Income Development Redevelopment Governmental Governmental Service (lousing Program Commission Fund Funds Funds 2,796,072 11.184.289 - 1,448,099 44,435,811 - - - 555,717 - - - - 142.350 1,454,328 196,696 264.663 33.746 102.104 357.225 1.414747 - - - 160,066 5,479.484 22,200,569 7.120.640 - - - 21.316 9.064,198 1,265,131 - - 368,251 428,855 3,465.296 8,582,467 3,060,735 7,633.903 670,912 11.218.035 630,421 7.406.010 2,745,974 2,034,918 7,877,329 82,590.666 85.479 6,517.068 38,887 30,715,473 341,252 2,118.325 591,043 21,840,082 7,761,907 2,686,543 6,160,615 3,149,728 5,501,888 2,225,000 705,000 3,191,174 1.796,282 714,869 2,535.113 7,633,903 670,912 11,427,292 4,780,892 8,312,801 86,341,645 948,564 2,389,823 (209,257) (4,150,471) (435,472) (3,750,979) 927,881 826.093 - 1.446.996 10,620.576 (1,434,245) (666,667) (2,350,501) (10,917,436) (506.364) 826.093 (666.667) (903.505) (296,860) 948564 1.883,459 616.836 (4.817,138) (1.338,977) (4,047.839) 15,125,094 10,991,134 4,154,814 17,048,769 13,596,115 84,726,423 16,073,658 12,874,593 4.771,650 12,231,631 12,257,138 80,678.584 24 CITY OF NATIONAL CTFY Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Governmental -Wide Statement of Activities For the Year Ended June 30, 2010 Changes in find balances of governmental funds Amounts reported for governmental activities in the statement of activities are different because: $ (4,047,839) Governmental funds report capital outlay as expenditures. However, in the government -wide statement of activities, the cost of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation expense exceeded capital outlays in the current year, net of disposals. (649,046) Repayment of bond principal and capitalized lease obligations are expenditures in governmental funds, but the repayments reduces Tong -term liabilities in the government -wide statement of net assets. 3,191,174 Interest expense on long-term debt was reported in the government -wide statement of activities but they did not require the use of current financial resources. Therefore, interest expense was not reported as expenditures in governmental funds. The following amount represents the change in accrued interest. 10,992 To record as an expense the net change in compensated absences in the statement of activities. 142,897 To record as an expense the net change in other post employment benefits liability in the statement of activities. (19,173) Revenues in the government -wide statement of activities that did not provide current financial resources were not reported as revenues in the governmental finds. (1,065,188) Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue (expense) of the internal service funds are reported with governmental activities. (139,362) Change in net assets of governmental activities $ (2,575,545) See accompanying notes to the basic financial statements. 25 ASSETS Current assets: Cash and investments (note 2) Restricted cash and investments with fiscal agents (note 2) Accounts receivable Inventories Prepaid items and deposits Total current assets CITY OF NATIONAL CITY Statement of Net Assets Proprietary Funds June 30, 2010 Enterprise l'unds Kimball Morgan Towers Towers $ 75.886 Total Governmental al Activities - Internal Service Funds 9,103 84,989 14,156,363 1,044,470 673,068 1.717,538 1.248,323 490 490 74.282 14.649 76.979 80.280 157.259 - 1,197,825 762,451 1,960,276 15,493,617 Noncurrent assets: Capital assets (note 5): Nondepreciable assets 315,814 212.568 528,382 507,000 Depreciable assets, net of accumulated depreciation 4,565,917 2,535,610 7,101,527 1,350,235 Total capital assets, net 4,881,731 2,748,178 7,629,909 1,857,235 Total noncurrent assets 4,881,731 2,748,178 7,629,909 1,857,235 Total assets 6,079,556 3,510,629 9,590,185 17,350,852 1,1 A 1111.1111: S Current liabilities: Accounts payable and accrued liabilities 172,028 150,267 322,295 381,394 Salaries payable - 24,714 24,714 51,856 Capital lesases payable - due within one year - 21,,381 Compensated absences - due within one year - - 178,559 Note payable - due within one year - 204,776 204,776 - Self-insurance claims payable - due within one year - - - 1,597,744 Total current liabilities 172.028 379,757 551,785 2.230,9.34 Noncurrent liabilities (note 7): Tenant security deposit liability, 43,977 44,898 88,875 - Capital lesases payable - due in rnore than one year - - 1,733,779 Note payable - due in more than one year - 2,276,886 2,276,886 Self-insurance claims payable - due in more than one year - - 4.286,256 Total noncurrent liabilities 43.977 2321,784 2,365,761 6,020,035 'Total liabilities 216.005 2,701,541 2,917,546 8,250,969 NET ASSETS Invested in capital assets_ net of related debt 4,881.731 266.516 5,148,247 1.857,2 35 Restricted for: Housing 981,820 542,572 1,524,392 - Unrestricted - - - 7,242,648 "Total net assets $ 5,863,551 809,088 6,672,639 9,099,883 See accompanying notes to the basic financial statements_ 26 CITY OF NATIONAL CITY Statement of Revenues. Expenses and Changes in Net Assets Proprietary Funds For the Year Ended June 30, 2010 Governmental Enterprise Funds Activities - Kimball Morgan Internal Towers Towers Total Service Funds Operating revenues: Rental income S 880,569 1,168,845 2,049,414 - Service charges - 9,411,591 Other revenues 7.259 7.042 14301 429.232 Total operating revenues 887,828 1,175,887 2,063,715 9,840,823 Operating expenses: Personnel services - - 2,091,642 Maintenance and operations 1,207,062 1,037.683 2,244,745 7,862,780 Depreciation 187,350 240,998 428348 322,624 Total operating expenses 1,394,412 1,278,681 2,673,093 10,277,046 Operating income (loss) (506.584) (102,794) (609,378) (436,223) Nonoperating revenues (expenses): Interest income 3,847 3,096 6,943 Interest expense (180,982) (180,982) Total nonoperating revenues (expenses) 3,847 (177,886) (174,039) Income (loss) before transfers (502,737) (280,680) (783,417) (436,223) Transfers in (note 3) - - - 1,326,860 Transfers out (note 3) - - (1,030,000) Change in net assets (502,737) (280,680) (783.417) (139,363) Net assets at beginning of year 6,366,288 1,089,768 7.456,056 9,239,246 Net assets, end of rear 5 5,863,551 809,088 6.672,639 9,099,883 See accompanying notes to the basic financial statements. 27 CITY OF NATIONAL CITY Statement of Cash Flows Proprietary Funds For the year Ended June 30, 2010 Governmental Enterprise Funds Activities - Kimball Morgan Internal Towers Towers Total Service Funds Cash flows from operating activities: Cash received from customers/other funds $ 884,039 1,174,031 2,058,070 9,409,575 Cash payments to suppliers (1,188,477) (771,250) (1,959,727) (7,072,908) Cash payments for general and administrative (176,029) (176,029) (2,086,291) Cash received from (payments to) other 7,259 7,042 14.301 418,455 Net cash provided (used by) operating activities (297,179) 233,794 (63,385) 668.831 Cash flows from noncapital financing activities: Cash received from other funds - - 1,175,356 Cash paid to other funds - - (1,030,000) Net cash provided (used by) noncapital financing activities - 145,356 Cash flows from capital and related financing activities: Acquisition of capital assets (30,417) (30,417) (691,574) Issuance of lease payable 1,755,160 Principal payments of note payable (191,924) (191,924) - Interest paid (180,982) (180,982) Net cash provided (used by) capital and related financing activities (30,417) (372,906) (403,323) 1,063,586 Cash flows from investing activities: Interest income 3,847 3,796 7,643 Net cash provided (used by) investing activities 3,847 3,796 7.643 Net increase (decrease) in cash and cash equivalents (323,749) (135,316) (459,065) 1,877,773 Cash and equivalents, beginning of year 1,444,105 817,487 2,261_592 13,526,913 Cash and equivalents, end of year $1.120,356 682,171 1,802,527 15,404,686 Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) S (506,584) (102,794) (609,378) (436.223) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 187,350 240,998 428,348 322,624 Changes in current assets and liabilities: Accounts receivable 2,577 5,186 7,763 (2,016) Inventories - - - 6.399 Prepaid items and deposits (29,868) 845 (29,023) - Accounts payable and accrued liabilities 49,346 82,165 131,511 (275,527) Salaries payable - 7.394 7.394 (463) Compensated absences - (4,963) Self-insurance claims payable 1,059,000 Total adjustments 209,405 336,588 545,993 1,105,054 Net cash provided (used) by operating activities $ (297,179) 233,794 (63,385) 668,831 See accompanying notes to the basic financial statements. 28 CITY OF NATIONAL CITY Statement of Fiduciary Net Assets Fiduciary Funds June 30, 2010 Library Private- Total Purpose Agency Fiduciary Trust Funds Funds ASSETS Cash and investments (note 2) $ 49,380 684,375 733,755 Accounts receivable - 1.768 1,768 Interest receivable 90 - 90 Total assets LIABILITIES Accounts payable Deposits payable Total liabilities NET ASSETS Held in trust for private purposes 49,470 686,143 735,613 32,416 32,416 653,727 653,727 686,143 686,143 $ 49,470 - 49,470 See accompanying notes to the basic financial statements. 29 CITY OF NATIONAL CITY Statement of Changes in Fiduciary Net Assets Fiduciary Funds Year Ended June 30, 2010 Additions: Investment income Total additions Net increase (decrease) Net assets, beginning of year Net assets. end of year Library Private - Purpose Trust $ 583 583 583 48,887 $ 49,470 See accompanying notes to.the basic financial statements. 30 Notes to the Basic Financial Statements 31 CITY OF NATIONAL CITY Notes to the Basic Financial Statements For the Year Ended June 30, 2010 (1) Summary of Significant Accounting Policies The basic financial statements of the City of National City, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Reporting Entity' The City was incorporated September 17, 1887 under the general laws of the State of California. The City operates under a Council -Manager form of government and provides basic local governmental services including public safety (police and fire), maintenance and construction of public improvements, cultural, recreation, planning, zoning, transportation, health services and general administration. In addition. the City operates the Community Development Commission (including Morgan Towers and Kimball Towers Enterprise Funds). The financial reporting entity consists of (a) the primary government, the City, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. As required by GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with data of the City. Each blended component unit has a June 30 year-end. The City had no discretely presented component units. The following entities are reported as blended component units: Community Development Commission of the City of National City, - The Community Development Commission of the City of National City (the "CDC") was established in April 1967 pursuant to provisions of the California Health and Safety Code. The CDC was created to undertake and carry out the redevelopment of certain areas within the City which the CDC has determined to he blighted areas by encouraging development of residential, commercial, industrial, recreational and public facilities and to assist neighborhood redevelopment through residential property improvement loans and housing assistance payments to low and moderate income earners. The City Council is the Governing Board of the CDC. Separate CDC financial statements may be obtained from the City's Finance Department located at 1243 National City Boulevard, National City, California 91950. 32 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) National City Joint Powers Financing Authority - The National City Joint Powers Financing Authority (the "NCJPFA") was created pursuant to a joint exercise of powers agreement entered into by and between the City and the CDC on April 16, 1991. The purpose of such agreement was to provide for the financing and construction of a new police facility and a new community center. The NCJPFA is administered by a comrission consisting of the members of the City Council and all voting power of the NCJPFA resides in the commission. The NCJPFA exclusively benefits the City. There are no separate financial statements available. Parking Authority of the City of National City - In July 1977, the Parking Authority of the City of National City (the "Authority") was activated pursuant to the Parking Law of 1949 for the financing and construction of the Plaza Bonita Parking Facility. The City Council is the governing board of the Authority. The Authority exclusively benefits the City. The capital assets of the Authority have been included in the Government - Wide Financial Statements. There are no separate financial statements available. B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources arc allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Government -Wide Financial Statements The City's Government -Wide Financial Statements include a Statement of Net Assets and a Statement of Activities and Changes in Net Assets. These statements present summaries of governmental and business -type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in the Government -wide statements. CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) These basic financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses arc recognized in the period in which the liability is incurred. Certain types of transactions are reported as program revenues for the City in three categories: • Charges for services • Operating grants and contributions • Capital grants and contributions Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Assets have been eliminated except those representing balances between the governmental activities and the business -type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities and Changes in Net Assets, internal service fund transactions have been eliminated; however, those transactions between governmental and business -type activities have not been eliminated. The following interfund activities have been eliminated: • Due to/from other funds • Loans receivable/related deferred revenue • Advances to/from other funds • Transfers in/out The City applies all applicable GASB pronouncements (including all NCGA Statements and Interpretations currently in effect) as well as the following pronouncements issued on or before November 30, 1989, to the business type activities, unless those pronouncements conflict with or contradict GASB pronouncements: Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARB) of the committee on Accounting Procedure. The City applies all applicable FASB Statements and Interpretations issued after November 30, 1989, except those that conflict with or contradict GASB pronouncements. 34 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) Fund Financial Statements Governmental Funds Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non -major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net assets as presented in these statements to the net assets presented in the Government -Wide Financial Statements. The City has presented all major funds that met the applicable criteria. All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues arc recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recorded when received in cash, except for that revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Deferred revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the government has a legal claim to the resources, the deferred revenue is removed and revenue is recognized. The Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34. 35 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (I) Summary of Significant Accounting Policies, (Continued) The City reported the following types of major governmental funds: General Fund This fund is used to account for resources, which are not required legally or by sound financial management to be accounted for in another fetid. Section 8 Housing Assistance Special Revenue Fund This fund is used to account for the activities of Section 8 Housing Assistance Program. The program provides rental assistance to low income families by subsidizing a portion of the rent directly to landlords on behalf of low income households. Other Special Revenue Fund This represents a combination of minor and less active funds that the City has combined for reporting purposes. Nutrition Program Special Revenue Fund This fund is used for operations of the Nutrition grant. Sewer Service Special Revenue Fund This fund is used to account for the collection of sewer connection fees and monthly sewer service charges used for the construction and maintenance of City sewers. Low and Moderate Income Mousing Fund This fund is used to account for the Community Development Commission 20% Set Aside. Community Development Commission Debt Service Fund This fund is used to account for debt service of the Community Development Commission. Redevelopment Capital Project Fund This fund is used to account for the administrative expenditures of the Community Development Commission and redevelopment capital projects. Proprietary Fund Financial Statements Proprietary fund financial statements include a Statement of Net Assets, a Statement of Revenues, Expenses and Changes in Fund Net Assets, and a Statement of Cash Flows for each major proprietary fund. 36 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government -Wide Financial Statements. Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Assets. The Statement of Revenues, Expenses and Changes in Fund Net Assets presents increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds. receivables have been recorded as revenue and provisions have been made for uncollectihle amounts. In accordance with GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Government Entities that Use Proprietary Fund Accounting, the City applies all GASB pronouncements currently in effect as well as Financial Accounting Standard Board Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedure issued on or before November 30, 1989. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses. The City reported the following types of major proprietary funds: Kimball Towers This fund is used to account for activities relating to the operations of Kimball Tower, which is used to provide housing to low and moderate income seniors. Morgan Towers This fund is used to account for activities relating to the operations of Morgan Tower, which is used to provide housing to low and moderate income seniors. 37 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) The City also reports the following fund types: Internal Service Funds These funds are used to account for interdepartmental operations where it is the stated intent that costs of providing services to the departments of the City on a continuing basis be financed or recovered primarily by charges to the user departments. Fiduciary Fund Financial Statements Fiduciary fund financial statements include a Statement of Net Assets and a Statement of Changes in Fiduciary Net Assets. The City's fiduciary funds represent private -purpose trust fund and agency finds. The private -purpose trust fund is used to account for resources legally held in trust for special purposes. The Agency funds arc custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The Agency funds are accounted for using an accrual basis of accounting. C. Use of Restricted/Unrestricted Net Assets When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the City's policy is to apply restricted net assets first. D. Cash, Cash Equivalents and Investments The City pools its available cash for investment purposes. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short- term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or Tess at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. 38 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of -Significant Accounting Policies. (Continued) The City participates in an investment pool managed by the State of California, entitled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset -Backed Securities. LAIF's investments are subject to credit risk with the hall faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset -Backed Securities are subject to market risk as to change in interest rates. Restricted Cash and Investments Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt and for acquisition and construction of capital projects. Interfund Transactions Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business -type activities are reported in the Governmental -Wide Financial Statements as `'internal balances." Advances between funds, reported in the fund financial statements, arc offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. G. Inventories and Prepaid Items Inventories are stated at cost using the average cost method. Payments made to vendors for services that will benefit periods beyond June 30, 2008 are recorded as prepaid items. The City uses the consumption method when reporting prepaid items. Prepaid items are recorded as an asset and are offset by a reserve in the fund financial statements. H. Land Held for Resale Land held for resale is recorded at the lower of. cost or, upon entering into a contract for sale, the estimated net realizable value. Fund balances are reserved in amounts equal to the carrying value of land and buildings held. for resale, because such assets are not available to finance the City's current operations. 39 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) 1) Summary of Significant Accounting Policies. (Continued) Capital Assets The City's assets are capitalized at historical cost or estimated historical cost. City policy has set the capitalization threshold for reporting general capital assets at $5,000 (including infrastructure assets). Gifts or contributions of capital assets are recorded at fair market value when received. Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows: Buildings and Improvements 10 -50 years Machinery and Equipment 2 -20 years Infrastructure 25 -75 years In June 1999. the GASB issued Statement No. 34 which requires the inclusion of infrastructure capital assets in local governments' basic financial statements. In accordance with Statement No. 34, the City has included the value of all infrastructures in the Basic Financial Statements. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include the streets, water purification and distribution system, sewer collection and treatment system, parks and recreation, lands and improvement system, storrn water conveyance system, and buildings combined with the site amenities such as parking and landscaped areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems. Interest accrued during capital assets construction, if any, is capitalized for the business -type and proprietary funds as part of the asset cost. For all infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The City commissioned an appraisal of City owned infrastructure and property as of June 30. 2003. This appraisal determined the estimated historical cost. which is defined as the actual cost to acquire new property in accordance with market prices at the time of first construction/acquisition. Estimated historical costs were developed in one of three ways: (1) historical records; (2) standard unit costs appropriate for the construction/acquisition date; or (3) present cost indexed by a reciprocal factor of the price increase from the construction/acquisition date to the current date. The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date on a straight line, 40 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies. (Continued) unrecovered cost method was computed using industry accepted life expectancies for each infrastructure system. The book value was then computed by deducting the accumulated depreciation from the estimated historical cost. J. Interest Payable In the government -wide financial statements, interest payable on long-term debt is recognized as the liability is incurred for governmental fund types and proprietary fund types. In the fund financial statements, proprietary fund types recognize the interest payable when the liability is incurred. K. Compensated Absences In the governmental fund financial statements, compensated absences are recorded as expenditures in the year paid, as it is the City's policy to liquidate any unpaid vacation or sick leave at year-end from future resources rather than currently available and expendable resources. Accordingly, the entire unpaid liability for employee compensated absences related to governmental fund types is recorded in the government -wide financial statements and is typically liquidated by the General Fund. For proprietary funds, the estimated value of the total accrued vacation and vested sick leave is recorded as current liability in the fund financial statements and government -wide financial statements and is typically liquidated by the respective enterprise and internal service funds. Long -Term Debi In the government -wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts; as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts. as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received. are reported as debt service expenditures. 41 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) A7 Fund Balances - Reservations and Designations In the fund financial statements, governmental funds report reservations of fund balances for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. N. Net Assets In the government -wide financial statements, net assets are classified in the following categories: Invested in Capital Assets, Net of Related Debt - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. Restricted Net Assets - This amount is restricted by external creditors, grantors. contributors, laws or regulations of other governments. Unrestricted Net Assets - This amount is all net assets that do not meet the definition of "invested in capital assets, net of related debt" or "restricted net assets." Property Tares The City has elected, by ordinance, that the duties of assessing and collecting property taxes be performed by the San Diego County Assessor and Tax Collector, respectively. "fax levies cover the period from July 1 to June 30 of each year. All tax liens attach annually on the first day in March preceding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as it exists on that date. Secured property taxes are levied against real property and arc due and payable in two equal installments. The first installment is due on November 1 and becomes delinquent if not paid by December 10. The second installment is due on February 1 and becomes delinquent if not paid by April 10. Unsecured personal property taxes are due on July 1 each year. These taxes become delinquent if not paid by August 31. The City records property tax revenues in the fiscal year to which they relate rather than at the related lien date. 42 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies. (Continued) One of the CDC's primary sources of revenue is from property tax increments. The assessed valuation of all property within the Downtown Redevelopment Project area was determined on the date of adoption of the Redevelopment Plan. Property tax related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are allocated to the CDC; all taxes on the "frozen" assessed valuation of the property are allocated to the City and unrelated taxing agencies. P. Community Development (7ommission Rental Revenue Rental revenues received from tenants in the CDC's Morgan 'lowers Housing Project (an enterprise fund) are subsidized with Federal government funds under a Section 8 contract with the U.S. Department of Housing and Urban Development (HUD). The rent subsidy received from IIUD is equal to the excess of the fair market rent of the apartment units over the amounts paid by the tenants. The amounts paid by the tenants are subject to certain Section 8 eligibility requirements and application procedures. Q. Use of Estimates The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions. (2) Cash and Investments Cash and investments as of June 30, 2010 are classified in the accompanying financial statements as follows: Statement of Net Assets: Cash and investments $ 71,081,459 Restricted cash and investments with fiscal agents 6,772,799 Statement of Fiduciary Net Assets: Cash and investments 733,755 Total cash and investments $ 78.588 013 Cash and investments as ofJune 30, 2010 consist of the following: Cash on hand $ 3,333 Deposits with financial institutions 6,350,676 Investments 72,234,004 Total cash and investments $ 78,588 013 43 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (2) Cash and Investments. (Continued) Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code and the City's investment policy. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by fiscal agent that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. Investment Types Authorized by State Law Local Agency Bonds U.S. Treasury Obligations U.S. Agency Securities Banker's Acceptances Commercial Paper Negotiable Certificates of Deposit Repurchase Agreements Reverse Repurchase Agreements Medium -Term Notes Mutual Funds Money Market Mutual Funds Mortgage Pass -Through Securities County Pooled Investment Funds Local Agency Investment Fund (LAIF) JPA Pools (other investment pools) Authorized By Investment Policy Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Maximum Maturity 5 years 5 years 5 years 180 days 180 days 2 years 1 year 92 days 5 years N/A N/A 5 years N/A N/A N/A *Maximum Percentage Of Portfolio None None None 5% 15% 3 0 % None 20% of base value 30% 15% 20% 20% None None None *Maximum Investment in One Issuer None None None 5% 10% None None None None 10% 10% None None None None * Based on state law requirements or investment policy requirements, whichever is more restrictive. 44 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Investments Authorized by Debt Agreements Investment of debt proceeds held by fiscal agent arc governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are generally authorized for investments held by fiscal agent. The table also identities certain provisions of these debt agreements that address interest rate risk and concentration of credit risk. Authorized Investment Type Maximum Maximum Maximum Percentage Investment Maturity Allowed in One Issuer U.S. Treasury Obligations None None None U.S. Agency Securities None None None Banker's Acceptances 360 days None None Commercial Paper 270 days None None Money Market Mutual Funds N/A None None Investment Contracts 30 years None None Certificates of Deposit None None None Repurchase Agreements None None None Mortgage Pass -Through Securities None None None State Bonds or Notes None None None Municipal Bonds or Notes None None None Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or corning close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. 45 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (2) Cash and Investments. (Continued) Information about the sensitivity of the fair values of the City's investments (including investments held by fiscal agent) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: Remaining Maturity (in Months) Investment Type U.S. Agency Securities Certificates of Deposit-CDARS Certificates of Deposit CalTrust Local Agency Investment Fund Commercial Paper Held by Fiscal Agent: Money Market Funds Total 12 Months Total or Less $ 6,908,807 3,000,000 3,000,000 1,089.245 1,089,245 2,339,397 2,339,397 54,420,257 54,420,257 515,065 - 3,961,233 3,961.233 13 to 24 Months 515,065 25 to 60 Months 6,908,807 $72 234,004 64,810,132 515,065 6,908,807 Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements. and the actual rating as of year end for each investment type. Investment Type U.S Agency Securities Certificates of Deposit-CDARS Certificates of Deposit CalTrust Local Agency lnvestment Fund Commercial Paper Held by Fiscal Agent Money Market Funds Total Minimum Legal Total Rating S 6.908.807 AAA 3,000,000 N/A 1.089.245 N/A 2.339,397 N/A 54.420,257 N/A 515,065 A 515,065 3,961.233 N/A Rating as of Year End AA+ AAA Not Rated 6,908,807 3,000,000 1,089,245 2,339,397 54,420.257 3,961,233 72234 004 515.065 6.908,807 64,810.132 46 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (2) Cash and Investments. (Continued) Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that. in the event of the failure of the counterparty (e.g., broker -dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% ofthe secured public deposits. For investments identified herein as held by fiscal agent, the fiscal agent generally selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government. Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share ofthe fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF is not rated. 47 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Restricted Cash and Investments of Community Development Commission Enterprise Fund The activities of Morgan Towers and Kimball Towers activities are recorded in and presented as Community Development Commission Enterprise Fund. In accordance with 'IUD requirement, the CDC maintains the following: Morgan Towers: Replacement reserve $ 428,091 Residual receipts reserve 226,604 MIP and insurance impounds reserve 18,373 Total Morgan Towers $ 673 068 Kimball Towers: Residual receipts reserve $ 304,710 Other 739,760 Total Kimball Towers $ 1044 470 Total restricted cash and investments $1 717,538 Morgan Towers • Reserve for replacements of $428,091 represents a monthly deposit of $3,127 plus income earned thereon. This reserve will be used for the future replacement of property with HUD's approval. • Residual receipts reserve of $226,604 is an accumulation of surplus cash as calculated by HUD's Computation of Surplus Cash, Distributions and Residual Receipts, which can be expended only with HUD's approval. • Reserve for MIP and insurance impounds of $10,498 and $7,875, respectively, totaling $18,373 represent amounts held for the future payment of property and mortgage insurance. Kimball Towers • Residual receipts reserve of $304,710 is an accumulation of surplus cash as calculated by HUD's Computation of Surplus Cash, Distributions and Residual Receipts, which can be expended only with HUD's approval. • Other restricted cash and investments totaling $739,760 are included in the accompanying basic financial statements. 48 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (3) Intertund Transactions Due To/From Other Funds Current interfund receivable and payable balances at June 30, 2010 are as follows: Due From Other Funds General Fund Subtotal - General Fund Section 8 Housing Fund Nonmajor Other Governmental Funds Redevelopment Capital Projects Fund Due To Other Funds Other Special Revenue Fund Nonmajor Other Governmental Funds Redevelopment Capital Projects Fund Nonmajor Other Governmental Funds Section 8 Housing Fund Amount $ 938,116 698.727 1,636.843 106 124.561 15.884 $1,777,394 lnterfund balances are primarily related to short-term borrowings to cover deficit cash balances at June 30, 2010. 49 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (3) Intcrfund Transactions, (Continued) Interfund Transfers For the year ended June 30, 2010, interfund transfers were as follows: Transfers In Other Governmental Funds Other Special Revenue Fund Nutrition Program Fund Internal Service Funds Total General Fund General Fund General Fund Other Governmental Funds Total Other Governmental Funds General Fund Other Special Revenue Funds Community Development Debt Service Fund Community Development Low and Moderate Housing Fund Other Governmental Funds Community Development Community Development Low Section 8 Housing Fund and Moderate Housing Fund Total Community Development Low and Moderate Housing Fund Transfers Out General Fund General Fund General Fund General Fund Other Special Revenue Funds Other Governmental Funds Other Governmental Funds Internal Service Funds Community Development Capital Projects Fund Community Development Low and Moderate Housing Fund Amount $ 924.507 (a) 1,380.797 (b) 1.716.103 (c) 1.326.860 (d) 5.348.267 1.117.756 (e) 900.131 (1) 522.489 (g) 1.422.620 1,030.000 (h) 666,667 (i) 826,093 (1) 927.881 (k) 608,152 (1) 1.434,245 Total $ 11,947,436 Significant interfund transfers were primarily to: (a) to subsidize operations for the National City Library operations; (b) to provide funding for one time employee incentive payments and leave sellbacks; (c) to subsidize the nutrition center program in FY 10 in the amount of 177,765 and subsidize the prior year's deficit balance in the amount of 1,538,338 as approved by the City Council; (d) to subsidize the prior year funding for various library and community services programs; (e) to provide funding for various General Fund programs and services; (f) to provide funding for various General Fund programs and services; (g) to provide funding for various library and community services program; (h) to provide funding for various General Fund programs and services; (i) to provide funding for the General Plan Update; (j) to record the Low and Moderate Income Housing fund's share of the debt service payment related to the 1999 TAB and the 2005 TAB (18% of series A); (k) to use HUD program income to reimburse CDBG program costs; and (1) to subsidize Section 8 operations. 50 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (3) Interfund Transactions, (Continued) Interfund Advances Long-term interfund receivables and payables as of June 30, 2010 are as follows: Receivable Fund Payable Fund Amount Sewer Service Fund Other Special Revenue Fund $ 760,034 (a) Community Development Capital Project Fund 739,966 (b) Total Sewer Service Fund 1,500,000 Other Special Revenue Fund General Fund 563,382 (c) $2 063 382 (a) To borrow funding for the fiscal year 2010-11 street resurfacing improvements program: the loan establishes a 5 year re -payment agreement with the Tax Increment fund for the first three years at an interest rate of 0.75% per annum. (b) To borrow funding for the fiscal year 2010-11 street resurfacing improvements program: the loan establishes a 5 year re -payment agreement with the TransNet (Prop " A) fund for the last two years at an interest rate of 0.75% per annum. (c) To borrow funding for the purchasing of a new fire truck: the loan established a 10 year re -payment agreement with the NCFD at an interest equal to 3.69% per annum. (4) Contracts, Notes and Loans Receivable As of June 30, 2010, the Contracts, Notes and Loans Receivable consisted of the following: Community Development Commission Governmental Fund: Outstanding at June 30, 2010 First time home buyer loans $ 2,066.093 Loans Copper Hills Apartments, LP 8,057,792 Plaza Manor 500.558 Single -Family Housing Rehabilitation Loan Program 223,349 Young Trust 230.000 Casa Familiar 1,576,900 Plaza City 3,422.000 Subtotal 14,010,599 1 otaI $16,076z692 51 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (4) Contracts. Notes and Loans Receivable. (Continued) Copper Hills Apartments, LP CDC Residual Receipts Note dated February 19, 1999 disclosed a loan of $2,400.000 with 3% interest per annum for 55 years, funded by HOME and Low & Moderate Income Housing Funds. A second and junior to the CDC Residual Receipts Note was made on June 1, 1999 referred to as CDC Rehabilitation Note with 3% interest per annum for 55 years and funded by Low & Moderate Income Housing Fund. These loans were made to acquire, develop, rehabilitate and operate the multi -family apartments located at "Q" Avenue in National City, Ca. This project will contain 134 apartment dwelling units following rehabilitation and renovation. Plaza Manor — CDC of the City of National City entered into a loan agreement with Plaza Manor Preservation, LP on December 18, 2001 in the amount of $500,000 with 3% compound interest per annum and shall end on April 15, 2032. The borrower has acquired a property located in the City of National City with aid ofthe said loan and with the intention to operate a 372 unit project as a very low and low income housing project. Funding sources for this loan were HOME (48%) and Low & Moderate Income Housing Funds (52%). Single -Family Housing Rehabilitation Loan Program — Prior to 2005, the CDC of the City of National City provided loans to eligible low-income homeowners to make repairs and basic home improvements that maintain the quality of their housing and created a positive effect in the surrounding neighborhood. Loans were offered at below -market interest rates utilizing federal HOME Investment Partnerships Program funds. Young Trust — A Promissory Note secured by Deed of Trust was made on December 17, 2003 between CDC of the City of National City and Robert Dale Young and Deborah Mae Young in the amount of $230,000 with interest of 5% per year. This loan is in reference to the California Community Redevelopment Law, where CDC appeals to redevelop a portion of the National City Redevelopment project, which is bounded by the location at Harrison Avenue, National City. Casa Familiar CDC of the City of National City entered in an Acquisition, Rehabilitation and Permanent Loan Agreement with Casa Familiar, Inc. on October 1, 2009 amounting to $516.900 with 2% per annum from the date of the disbursement. interest shall accrue. however, no payments shall be due under the CDC Note until July 1, 2011, and annually on July 1 of each year during the term of the CDC note, and Borrower shall make payments to the CDC in the manner provided in the CDC note until 55 years. This loan was intended to acquire. rehabilitate and permanently finance the property located at 304 East Fifth Street, National City, CA and is comprised entirely of HUD HOME funds all of which shall be used for HOME eligible purposes. Plaza City - CDC of the City of National City entered into a Loan Agreement with Plaza City Apartments, LP on November 1. 2005 in the amount of $2,700,000 with 3% interest per annum for 55 years. It lvas amended per Resolution No. 2006-202 dated September 19, 2006 which increased the loan amount by S722,000 for a total of $3,422,000. This loan will be used by the borrower to pay the balance ofthe purchase price and additional costs relating to the acquisition, demolition and development of certain real property located at 1535 Plaza Blvd., National City. CA. 52 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (5) Capital Assets The following is a summary of changes in the capital assets for governmental activities at June 30, 2010: Balance at Balance at July 1.2009 Additions Deletions June 30, 2010 Governmental -type activities: Depreciable: Buildings and improvements S 44,343,967 44,343,967 Machinery and equipment 12,838,883 1,231,749 14,070,632 Infrastructure 110.333,302 1.582,127 (38.927) 111,876,502 Total cost of depreciable capital assets 167 516 152 2.813,876 (38.927) 170,291,10] Less accumulated depreciation: Buildings and improvements (15,746,887) (1,396,566) (17,143,453) Machinery and equipment (8,488,584) (909,418) (9,398,002) Infrastructure (49.502,713) (2,689.071) 31,945 (52,223,729) Total accumulated depreciation (73,738,184) (4.995,055) 31,945 (78,765,184) Net depreciable capital assets 93,777,968 (2,181,179) (70,872) 91,525,917 Non -depreciable: Land 20,025,598 20,025,598 Rights of way 4,245,088 4,245,088 Construction in progress 3,106.170 4 357 391 (2,385 436) 5,078,125 Total non -depreciable capital assets 27,376,856 4357,391 (2385.436) 29,348,811 Capital assets, net $121 154,824 2 176 212 ( 456.308) 120,874 728 Depreciation expense for governmental activities for the year ended June 30, 2010 of $4.995.055 was allocated as follows: General Government $ 353.549 Community Development 1,524,047 Public Safety 881,660 Transportation 2,235,799 $4,995 055 53 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (5) Capital Assets, (Continued) The following is a summary of changes in the capital assets for business -type activities at June 30, 2010: Business -type activities: Depreciable: Buildings and improvements Machinery and equipment Balance at Balance at July 1 2009 Additions Deletions June 30, 2010 $ 15,654,166 30,418 - 15.684.584 462.153 - - 462.153 Total depreciable capital assets 16,116,319 30,418 - 16,146.737 Less accumulated depreciation (8,616,862) (428.348) (9,045.210) Total depreciable assets, net 7,499,457 (397.930) 7,101,527 Non -depreciable assets: Land 528,382 - - 528,382 Total non -depreciable capital assets Capital assets, net 528.382 528,382 8 027 839 (397,93_9) _ 7629,909 Depreciation expense for business -type activities for the year ended June 30, 2010 was allocated as follows: Kimball Towers Morgan Towers Total depreciation expense 54 $ 187350 240,998 $428 348 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (6) Risk Management The City is exposed to various risks of loss related to torts; theft of. damage to and destruction of assets; errors and omissions; natural disasters; and workers' compensation claims. A self-insurance (internal service) fund is used to account for the City's insurance programs. Operating revenues of this fund represent payments from other City funds and are based upon estimated umbrella insurance premium expenses. self-insurance losses and other operating expenses. The City is a member of the San Diego Pooled Insurance Program Authority (the "Program Authority"), a joint powers authority established to provide insurance and insurance -related services to its members. The Program Authority's governing board consists of one member from each participating city and is responsible for the selection of management as well as budgeting and finance. Insurance activities are financed by charges to member cities. Each participating city has its own self -insured retention level. The City is insured for general liability with a self -insured retention of $150,000. Losses between the self -insured retention level and $2,000,000 are shared by the participant cities. Excess liability insurance coverage is provided by the Program Authority for losses greater than $2,000,000 up to $35,000,000. Losses in excess of $35,000,000 are not covered and are self -funded by the City. The City is completely self - insured for unemployment claims. The City is also a member of CSAC Excess Insurance Authority ("CSAC"). a joint powers authority, for workers compensation claims. The City is self -insured for workers compensation claims and losses up to $500,000 per occurrence. Losses between the self - insured retention level and $5,000,000 arc shared by the participant cities. Losses in excess of $5,000,000 up to $200,000,000 are reinsured by a commercial insurance carrier. The City is completely self -insured for unemployment claims. During the current year, there were no significant reductions in insurance coverage from the prior year. For each of the past three fiscal years, the settlements have not exceeded the City's insurance coverage. 55 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (6) Risk Management, (Continued) At June 30, 2010, the City accrued $5,884,000 of workers' compensation and general liability claims representing estimates of amounts to be paid for actual and incurred but not reported claims based upon past experience, modified for current trends and information. Allocated claim adjustment expenses are included in claim liabilities. While the ultimate amount of losses incurred through June 30. 2010 is dependent on future developments, based upon information from the City Attorney, outside counsel and others involved with the administration of the programs, City management believes that the aggregate accrual is adequate to cover such losses. For the past three years, no settlements or claims payments have exceeded the amount of the applicable coverage. For the past two fiscal years. the changes in the City's liability for claims payable are summarized as follows: Fiscal Year 2009-10 Fiscal Year 2008-09 Unpaid claims, July 1 $ 4,825,000 4,508,000 Incurred claims and adjustments 1,832,888 2,051,528 Claims paid (773,888) (1.734.528) Total $ 5,884.000 4,825,000 56 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) 17) Long -Term Debt Following is a summary of long-term debt transactions for the fiscal year ended June 30, 2010: Classification Amount Due Amount Due Balance at Balance at Within Beyond July 1, 2009 Additions Deletions June 30 2010 One Year One Year Governmental Activities: National City Joint Powers Financing Authority: Lease Revenue Refunding Bonds 5 3,605,000 (325,000) 3,280,000 345,000 2,935,000 Community Development Commission: 1999 Tax Allocation Bonds 4,210,000 - (120,000) 4,090,000 125,000 3,965,000 2004 Tax Allocation Bonds 4,885,000 - (265,000) 4,620,000 275,000 4,345,000 2005 Series A and B Tax Allocation Bonds 30,585,000 (1,840.000) 28,745,000 2,125.000 26,620,000 General Obligation Bonds 5,440,000 - (155,000) 5,285,000 165,000 5,120,000 HUD 108 Bond 2003 A 5,975.000 (225.000) 5.750.000 245,000 5.505.000 Total Bonds 54,700,000 (2,930,000) 51,770.000 3,280,000 48.490,000 Claims Payable 4,825,000 1,832,888 (773,888) 5,884,000 1,597,744 4,286,256 Compensated Absences 3,176,651 2,276,019 (2_423.878) 3,028,792 1,975,044 1,053.748 Other postemployment Benefits 34,624 110,954 (91.783) 53,795 53,795 Capitalized Lease Obligations 1.117.728 1.755.16(1 (261.174) 2.611.714 188.663 2.423.051 4 ota1 Governmental Activities 63.854.003 5.975.021 (6:180,72 3) 63.348.301 7.041,451 56.306.850 Business -type Activities: Note Payable 2.673.586 . (191.924) 2.48 L662 204.776 2.276.886 Total Primary Government $66.527 589 4 219.861 0-672 647) 65 839 963 7.246 227 58 583 736 57 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Long -Term Debt, (Continued) National City Joint Powers Financing Authority (NCJPFA) Lease Revenue Refunding Bonds The NCJPFA issued $6,255,000 of refunding bonds on October 1, 1998 to provide hands for the advance retimding of the previously issued bonds. Interest on the bonds is payable semiannually on each April 1 and October 1, commencing April 1, 1999. The bonds are special obligations of NCJPFA secured by a pledge of revenues which consist of lease payments received by NCJPFA, as lessor, from the City, as lessee. The bonds have interest rates that range from 3.20% to 3.95 % for those that mature from 1999 through 2008 and 4.70% for those that mature from 2009 through 2017. The bonds maturing on or before October 1, 2008 are not subject to optional redemption prior to maturity. The bonds maturing on or after October 1, 2009 are subject to optional redemption prior to maturity on October 1; 2008, and any payment date thereafter at the option of NCJPPA, as a whole or in part pro rata among maturities and by lot within a maturity_ expressed as percentages of the principal amount to be redeemed, plus accrued interest to the redemption date as follows: October 1, 2008 and April 1, 2009 102% October I, 2009 and April 1, 2010 101% October 1. 2010 and thereafter 100% The annual debt service payments for the bonds are as follows: Fiscal Year Principal Interest Total 2011 $ 345.000 146,053 491.053 2012 360,000 129,486 489.486 2013 375.000 112,213 487.213 2014 400.000 94,000 494,000 2015 420,000 74.730 494,730 2016 435,000 54,638 489,638 2017 460,000 33,606 493,606 2018 485.000 11,398 496.398 Total S3,280.000 656.124 3.936.124 58 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Long -Fenn Debt. (Continued) Community Development Commission 1999 Tax Allocation Bonds In June 1999, the Commission issued S5,050,000 in Tax Allocation Bonds for the Q Avenue Redevelopment project. The bonds consist of $1.085,000 in serial bonds which mature from 2000 to 2010 in amounts ranging from $45,000 to $125,000, and $1,425,000 in term bonds which mature in 2019, and $2,540,000 in term bonds which mature in 2029. Interest is payable semi-annually on February 1 and August 1, at interest rates ranging from 3.30% to 4.50%. The annual debt service requirements for the 1999 Tax Allocation Bonds outstanding are as follows_ Fiscal Year Principal Interest Total 2011 $ 125,000 204,237 329,237 2012 130,000 198,175 328,175 2013 135,000 191,550 326,550 2014 145,000 184,550 329,550 2015 150,000 177,176 327,176 2016 155.000 169,550 324,550 2017 165,000 161,549 326,549 2018 175,000 153,050 328,050 2019 180.000 144,175 324,175 2020 190,000 134,925 324,925 2021 200,000 125,050 325,050 2022 210,000 114,543 324,543 2023 220,000 103,525 323,525 2024 235,000 91,866 326,866 2025 245,000 79,566 324,566 2026 260,000 66,625 326,625 2027 270,000 53,044 323.044 2028 285,000 38,822 323,822 2029 300.000 23,831 323,83I 2030 315.000 8,072 323.072 Total $4 090 000 2,423,881 6.513 881 59 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Long -Term Debt. (Continued) Community Development Commission 2004 Tax Allocation Bonds In June 2004, the Commission issued $5,860,000 Tax Allocation Bonds to finance a portion of the cost to construct a fire station, library, and community art center. The bonds consist of $3,045,000 in serial bonds, which mature from 2005-2015 in amounts ranging from $220,000 to $330,000, and $1,085,000 in term bonds, which matures in fiscal year 2033. Interest is paid semi-annually on February 1 and August 1, at interest rates ranging from 1.50% to 5.50%. The annual debt service requirements for the 2004 Tax Allocation Bonds outstanding are as follows: Fiscal Year Principal Interest Total 2011 $ 275,000 214,685 489,685 2012 285,000 204,880 489.880 2013 295,000 194,145 489.145 2014 305.000 182,440 487.440 2015 315,000 169,883 484.883 2016 330,000 156,413 486,413 2017 149,440 149.440 2018 - 149,440 149,440 2019 - 149,440 149,440 2020 - 149,440 149,440 2021 - 149,440 149,440 2022 - 149,440 149.440 2023 - 149,440 149,440 2024 - 149,440 149,440 2025 - 149,440 149,440 2026 - 149,440 149.440 2027 345,000 140,775 485,775 2028 360.000 123,150 483,150 2029 380,000 104,650 484,650 2030 400,000 84.150 484.150 2031 420.000 61.600 481.600 2032 445,000 37.813 482.813 2033 465,000 12.788 477.788 Total $4.620,000 3,181,772 7.801 772 60 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Long -Term Debt, (Continued) Community Development Commission 2005 Tax Allocation Bonds In January 2005, the Commission issued 2005 Tax Allocation Bonds Series A & B, in the aggregate principal amount of $27,940,000 and $9,840,000, respectively. The bonds were issued for the purpose of refunding the 2001 Tax Allocation Refunding Bonds Series A & B. Interest on the bonds is payable semiannually on August 1 and February 1, commencing August 1, 2005, at rates ranging from 2.9% to 5.25% per annum. The annual debt service requirements for the 2005 Tax Allocation Bonds outstanding are as follows: Fiscal Year Principal Interest Total 20I1 $ 2,125,000 1,324,418 3,449,418 2012 3,060,000 1.233,043 4,293,043 2013 3,200,000 1,095,343 4,295,343 2014 3,345,000 948,143 4,293,143 2015 3,505,000 790,928 4,295,928 2016 3,670,000 622,688 4,292,688 2017 760,000 444,693 1,204,693 2018 790,000 415,813 1,205,813 2019 825,000 385,003 1,210,003 2020 855,000 352,003 1,207,003 2021 890,000 317,803 1,207,803 2022 570,000 277,753 847,753 2023 595,000 253,528 848,528 2024 780,000 227,943 1,007,943 2025 815,000 194,013 1.009,013 2026 855,000 153,263 1,008,263 2027 555,000 110,513 665,513 2028 435,000 81,375 516,375 2029 250,000 58,538 308,538 2030 200.000 45,413 245,413 2031 210.000 34,913 244,913 2032 220,000 23,888 243,888 2033 235.000 12,338 247,338 Total $28,745,000 9,403 356 38,148,356 61 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Long -Term Debt, (Continued) 2003 General Obligation Bonds The City issued S6,000,000 of general obligation bonds. Election of 2002. Series A on April 24. 2003 to provide funds for a new public library. The bonds mature annually through August 1, 2028 in the amounts ranging from $120,000 to S425,000 beginning August 1, 2003. The interest of the bonds is payable semi-annually on each February 1 and August 1, commencing February 1, 2004_ The interest rate of the bonds ranges from 3.70% to 6.10%. The bonds are payable solely from and secured by ad valorem taxes of all property subject to taxation by the City. The bonds are subject to optional and mandatory early redemption provisions. 'I he annual debt service payments for the bonds outstanding are as follows: Fiscal Year Principal Interest Total 2011 $ 165,000 234,740 399.740 2012 175,000 224,658 399,658 2013 185,000 213,889 398,889 2014 200,000 204,870 404,870 2015 210,000 197,075 407,075 2016 220,000 188,580 408.580 2017 230,000 179,580 409.580 2018 240,000 170,030 410,030 2019 255,000 159,725 414,725 2020 265,000 148,673 413,673 2021 280,000 136,850 416.850 2022 295,000 124,235 419,235 2023 310,000 110,770 420.770 2024 330,000 96,370 426,370 2025 345,000 81,010 426,010 2026 365,000 64,635 429,635 2027 385,000 47,290 432,290 2028 405,000 29,022 434,022 2029 425,000 9.828 434,828 Total $5,285,000 2,621,830 7 9066 830 62 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Lone -Term Debt. (Continued) 2003 A HUD 108 Bond The City issued $6,900,000 of HUD 108 Bonds. Series A on August 7, 2003 to provide funds for the construction of a fire station. The bonds mature annually through 2024 in the amount ranging from $170,000 to $635,000 beginning in 2005. The interest of the bonds is payable semi-annually on each February I and August 1, commencing February I, 2004. The annual debt service payments for the bonds outstanding are as follows: Fiscal Year Principal Interest Total 2011 $ 245.000 297,269 542,269 2012 260.000 286,413 546,413 2013 280,000 274,117 554,117 2014 305,000 260,227 565,227 2015 325,000 244,850 569,850 2016 350.000 227,967 577,967 2017 380,000 209,233 589,233 2018 410,000 188,528 598,528 2019 440.000 165.847 605,847 2020 475,000 141,044 616,044 2021 510,000 113,975 623,975 2022 545,000 84,640 629,640 2023 590.000 52,770 642,770 2024 635.000 18.066 653.066 Total �750000 Z.564.946 8,314,946 63 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Long -Term Debt. (Continued) Morgan Towers Note Payable The note payable is secured by a deed of trust and is payable to GMAC. The original note was dated March 1, 1978 in the amount of $5,125,000. Payments of principal and interest at 6.5% aggregating $30,005 are made monthly with the final payment due August 1, 2019. The unpaid principal portion of the note at June 30. 2010 was $2,481,662. The note is insured by HUD and is secured by substantially all property and equipment of the Morgan Towers Enterprise Fund. The annual principal payments of the note payable outstanding are as follows: Fiscal Year Principal Interest Total 2011 $ 204,777 155,283 360,060 2012 218,492 141,568 360,060 2013 233,124 126.936 360,060 2014 248,736 111.324 360,060 2015 265,395 94,665 360,060 2016 283,170 76,890 360,060 2017 302,136 57,924 360,060 2018 322,368 37,692 360,060 2019 343,957 16,103 360,060 2020 59,507 503 60.010 Total $2 481,62 818,888 3,300,550 Defeasance of Debt As of June 30, 2010. the outstanding balance of defcascd issues are as follows: 2001 Series A Tax Allocation Bonds (Series A & B) 1998 Tax Allocation Bonds 64 $34,105,000 11,930,000 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (8) City Defined Benefit Pension Plan (PERS) The City of National City contributes to the California Public Employees Retirement System (PERS). The miscellaneous employees of the City and the safety employees are part of a single -employer defined benefit pension plan. PERS provides retirement and disability benefits, annual cost of living adjustment, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Copies of PERS' annual financial report may be obtained from its executive office at 400 "P" Street, Sacramento, California 95814. Miscellaneous and safety participants are required to contribute 8% and 9%, respectively, of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. Benefit provisions and all other requirements are established by state statute and City contract with employee bargaining groups. Under GASB 27, an employer reports an annual pension cost (APC) equal to the annual required contribution (ARC) plus an adjustment for the cumulative difference between the APC and the employer's actual plan contributions for the year. The cumulative difference is called the net pension obligation (NPO). The ARC for the period July 1, 2009 to June 30, 2010 has been determined by an actuarial valuation of the plan as of June 30, 2007. The contribution rate indicated for the period is 28.401% of payroll for the safety plan and 16.397% of payroll for the miscellaneous plan. In order to calculate the dollar value of the ARC for inclusion in the financial statements prepared as of June 30, 2010, the contribution rate is multiplied by the payroll of covered employees that were paid during the period from July 1, 2009 to June 30, 2010. A summary of principle assumptions and methods used to determine the ARC is shown below. City Miscellaneous Employees Group Safety Employees Group Valuation Date June 30, 2007 June 30,2007 Actuarial Cost Method Entry Age Normal Cost Method Entry Age Normal Cost Method Amortization Method Level Percent of Payroll Level Percent of Payroll Average Remaining Period 25Years as of the Valuation Date 32 Years as of the Valuation Date Asset Valuation Method 15 Year Smoothed Market 15 Year Smoothed Market Actuarial Assumptions Investment Rate of Return 7.75% (net of administrative expenses) 7.75% (net of administrative expenses) Projected Salary Increases 3.25% to 14.45% depending on Age, 3.25% to 13.15% depending on Age_ Service, and type of employment Service, and type of employment Inflation 3.00% 3.00% Payroll Growth 3.25% 3.25% Individual Salary Growth A merit scale varying by duration of A merit scale varying by duration of employment coupled with an assumed employment coupled with an assumed annual inflation component of3.00% annual inflation component of3.00% and an annual production growth of and an annual production growth of 0.25% 0.25% 65 Fiscal Year 6/30/08 6/30/09 6/30/10 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (8) City Defined Benefit Pension Plan (PERS). (Continued) Initial unfunded liabilities are amortized over a closed period that depends on the plan's date of entry into CaIPERS. Subsequent plan amendments are amortized as a level percentage of pay over a closed 20-year period. Gains and losses that occur in the operation of the plan are amortized over a rolling 30 year period, which results in an amortization of 6% of unamortized gains and losses each year. If the plan's accrued liability exceeds the actuarial value of plan assets, then the amortization payment on the total unfunded liability may not be lower than the payment calculated over a 30 year amortization period. The Schedule of Funding Progress below shows the recent history of the actuarial value of assets, actuarial accrued liability, their relationship, and the relationship of the unfunded accrued liability to payroll. The schedule of funding progress, presented below presents multiyear information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Required Supplementary. Entry Age Normal Valuation Accrued Date Liability 6/30/07 6/30/08 6/30/09 $70,797.946 75,995058 82,507.216 Required Supplementary Entry Age Normal Valuation Accrued Date Liability 6/30/07 S102.027,654 6/30/08 112,532,571 6/30/09 122,308,588 Information —City Miscellaneous Employees Group Unfunded Actuarial Liability/ Annual Value (Excess Funded Covered of Assets Assets) Status Payroll 62,442,682 67,252,370 70,686,597 8,355,264 8,742,688 11,820,619 88.2% 88.5% 85.7% 11,132.479 11,798,468 11,644.870 UAAL As a % of Payroll 75.1% 74.5% 101 5% Information — Safety Employees Group Unfunded Actuarial Liability/ Annual UAAL Value (Excess Funded Covered As a % of of Assets Assets) Status Payroll Payroll 85,092,163 91,454,242 95,876,636 16,935,491 21,078,329 26,43] 952 83.4% 813% 78.4°%% Three -Year Trend Information Annual Pension Cost (Employer Contribution) Percentage of Miscellaneous APC Contributed 2,565,047 100% 1,901,577 100% 1,871,038 100% Safety 3,866,043 3.199,780 3.461.800 9,431,560 10,600,069 11,263.294 66 179.6% 198.9% 234.6% Net Pension Obligation - 0- - 0- - 0- CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (9) Other Postemployment Benefit Plan Plan Description: The City administers a single -employer defined benefit plan which provides medical insurance benefits to eligible retirees and their spouses in accordance with various labor agreements. The City has not established a trust that is administered by the City for the purpose of holding assets accumulated for plan benefits. After age 65, Medicare automatically becomes the primary provider of health coverage. The City's defined benefit plan becomes the secondary provider. Eligible retirees will have no noticeable change in health benefits or plan administration; however, there is a reduction in the City's cost of health coverage as the secondary provider. The City's defined benefit plan administrator establishes the cost of secondary provider rates annually. The City will pay 100% for eligible retirees' health coverage. Eligibility: Employees are eligible for retiree health benefits if they retire from the City on or after age 50 with at least 5 years of service, and are eligible for a PERS pension. Membership of the plan consisted of the following at June 30, 2010, the date of the latest actuarial valuation: Retirees and beneficiaries receiving benefits 24 Active plan members 357 Total 381 City's Funding Policy: The contribution requirements of plan members and the City are established and may be amended by City Council. The contribution required to be made under City Council and labor agreement requirements is based on a pay-as-you-go basis (i.e., as medical insurance premiums become due). For fiscal year 2009-10, the City contributed $91,783 to the plan for current premiums. Annual OPEB Cost and Net OPEB Obligation. The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year; the amount actually contributed to the plan. and changes in the City's net OPEB obligation for these benefits: 67 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (9) Other Postemployment Benefit Plan, (Continued) Annual required contribution $110,954 Interest on net OPEB obligation Adjustments to annual required contributions Annual OPEB cost (expense) 110,954 Contributions made (including premiums paid) (91,783) Increase in net OPEB obligation 19,171 Net OPEF3 obligation -beginning of year 34,624 Net OPEB obligation -end of year 53 7 5 The City's annual OPER cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2010 and the two preceding years were as follows: Percentage of Annual Net Fiscal Annual OPEB Cost OPEB Year OPEB Cost Contributed obligation 6/30/08 N/A N/A N/A 6/30/09 $110,954 68% $34,624 6/30/10 $110,954 83% $53,795 Funded Status and Funding Progress. The funded status of the plan as of June 30, 2010, was as follows: Actuarial accrued liability (AAL) Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) Funded ratio (actuarial value of plan assets/AAL) Covered payroll (active plan members) UAAL as a percentage of covered payroll 68 $1,058,356 $1,058,356 0.0% 23.196,000 4.6% CI l'Y OF NATIONAL. CITY Notes to the Basic Financial Statements (Continued) (9) Other Postemployment Benefit Plan, (Continued) Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress. presented as required supplementary information following the notes to the financial statements. presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over tirne relative to the actuarial accrued liabilities for the benefits. Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the efThcts of short-term volatility in actuarial accrued liabilities and the actuarial assets, consistent with the long-term perspective of the calculations. The actuarial cost method used for determining the benefit obligations is the Frozen Entry Age Actuarial Cost Method. The actuarial assumptions included a 5% percent investment rate of return, which is the assumed rate of the expected long-tenn investment returns on plan assets calculated based on the funded level of the plan at the valuation date. The UAAL is being amortized as a level percentage of projected payroll over 20 years. It is assumed the City's payroll will increase 3.25% per year. SCHEDULE OF FUNDING PROGRESS Actuarial UAAL as a Accrued Unfunded Percentage of Actuarial Actuarial Liability AAL Funded Covered Covered Valuation Value of (AAL)-Entry (UAAL) Ratio Payroll Payroll Date Assets (a) Aae (b) (b-a) (a/b) (c) (a-b)/c) 7/01/08 $ - $1,058,356 $1,058,356 0% $22,466,000 0.3% 69 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (10) Commitments and Contingencies A. Lawsuits in the Normal Course of Business The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate. are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize. B. Federal and State Grant Programs The City participates in several federal and state grant programs. These programs have been audited by the City's independent auditors in accordance with the provisions of the federal Single Audit Act, as amended and applicable state requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. (11) Pledged Revenues The City and its component units have a number of debt issuances outstanding that are collateralized by the pledging of certain revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented in the accompanying notes. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes. For the current year, debt service payments as a percentage of the pledged gross revenue (or net of certain expenses where so required by the debt agreement) are indicated in the table below. These percentages also approximate the relationship of debt service to pledged revenue for the remainder of the term of the commitment: Description of Pledged Revenue Tax increment revenues Annual Amount of Pledged Revenue (net of expenses, where required) $1 1.184,289 70 Annual Debt Service Payments (of all debt secured by this revenue) Debt Service as a Percentage of Pledged Revenue 4,021,382 36% CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (12) Prior Period Adjustments The accompanying financial statements include adjustments that resulted in the restatements of beginning fund balances/net assets. The following summarizes the effect of the prior period adjustments to beginning fund balance net assets as of July 1, 2009: Other Capital Special Project Revenue Fund Special Total Redevelopment Revenue Governmental Fund Fund Funds Fund balance — beginning of year, as previously reported S16213.769 14,023,465 84,318,773 To recognize revenues earned in prior year previously deferred 835.000 - 835,000 To adjust land held for resale for transactions not recorded in prior years - (427,350) (427.350) Fund balance — beginning of year. as restated $17 048 769 13 596,115 84,726 423 The following summarizes the effect of the prior period adjustments to beginning fund balance net assets as of July I, 2009: Government - Wide Statement ofNet Assets Net assets — beginning of year, as previously reported S155,382,933 To record notes receivable previously unrecorded in prior years 9.975,3,12 Net assets — beginning of year, as restated S165,358 275 71 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (13) Accumulated Fund Deficits The following funds had fund deficits at June 30, 2010: Library Special Revenue Fund Parks Maintenance Special Revenue Fund STP/Local 1 ransnet Highway Special Revenue Fund Traffic Congestion Relief Special Revenue Fund The City is in the process of identifying a repayment method deficit fund balances will remain on the books until an agreed by the City Council of the City of National City. (14) Expenditures in Excess of Appropriations $(172.139) (40,941) (333,206) (61,537) of the funds noted. The upon method is approved The following funds reported excess of expenditures over appropriations for the year ended June 30. 2010: Final Fund Budget Actual Section 8 Housing Assistance Special Revenue Fund $9,268,420 9,418,147 Joint Powers Financing Authority Debt Service Fund 486,798 486,807 Library Bond Debt Service Fund 399,500 402,578 72 Variance with Final Budget Positive (Negative) (149,727) (9) (3,078) Cf7'Y OF NATIONAL CI'i'Y Notes to Required Supplementary Information For the Year Ended June 30, 2010 (1) Budgetary information Annual budgets are adopted for the general, special revenue. debt service, and capital projects funds. All unencumbered appropriations lapse at the end of the fiscal year. Encumbered appropriations are carried forward in the subsequent fiscal year. The City Manager is authorized to transfer budgeted amounts within a fund. However, any revisions that increase the total budget of any fund must be approved by the City Council. All necessary supplemental appropriations were adopted by the City Council and are included in the reported data. For the fiscal year ended June 30, 2010, supplemental appropriations requiring City Council approval were insignificant. The legal level of control for appropriations is exercised at the fund level. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year-end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year. The following is the budget comparison schedules for the General Fund and all major special revenue funds. (2) Required Disclosures The following funds reported excess of expenditures over appropriations for the year ended June 30, 2010: Fund Section 8 Housing Assistance Special Revenue Fund Final Budget Actual $9.268,420 9.418.147 73 Variance with Final Budget Positive (Negative) (149,727) CITY OF NATIONAL CITY General Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Revenues: Taxes Licenses and permits Fines and forfeitures Interest and rents Intergovernmental Charges for services Other revenues Total revenues Expenditures: Current: General government Public safety Transportation Culture and leisure Capital outlay Debt service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balance, beginning of year Fund balance. end of year Budget Amounts Actual Original Final $ 28,470,135 417,732 1,028,258 697,100 576,400 441,280 255,113 28,470.135 417.732 1,028,258 697.100 576.400 441.280 255,113 Amounts 29,007.351 551,517 1.219.418 432,226 571,308 482,975 593,968 31.886,018 31,886,018 32,858.763 Variance with Final Budget Positive (Negative) 537,216 133,785 191,160 (264,874) (5,092) 41,695 338,855 972,745 5.164,879 5,164,879 4,578,197 586,682 29,044,391 29,044,391 28,402,451 641,940 1,887.479 1,887.479 1,777,073 110,406 1,950,722 1,950,722 1.828,785 121,937 1,086.606 1.086.606 301,404 785.202 224,372 224.372 261,174 (36,802) 69,780 69,780 23,962 45,818 39,428,229 39,428,229 37,173,046 2,255,183 (7,542,211) (7,542,211) (4,314,283) 3,227.928 3,132,428 3,132,428 3.047.887 (5,548.267) (5,548_267) (5,348,267) 200,000 (2.415.839) (2.415.839) (2,300,380) 115,459 (84,541) (9,958.050) (9.958,050) (6,614.663) 3,343,387 18.440,688 18,440.688 18.440.6 88 $ 8.482.638 8,482,638 11.826,025 3,343,387 74 CITY OF NATIONAL CITY Section 8 Housing Assistance Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 7,459,000 8,659,000 9,704,442 1,045,442 Other revenues - 75 75 Total revenues Expenditures: Current: Community development Total expenditures 7,459,000 8.659.000 8,696.220 9.268.420 8,696,220 9.268.420 Excess (deficiency) of revenues over (under) expenditures (1,237,220) Other financing sources (uses): Transfers in Total other financing sources (uses) Net change in fund balances Fund balance, beginning ofyear Fund balance, end ofyear 9,704,517 1,045,517 9.418,147 (149,727) 9,418,147 (149,727) (609,420) 286,370 895,790 1,215,884 1,215,884 1,215,884 1,215,884 (21,336) 606,464 184.513 608,152 (607,732) 608,152 (607,732) 894.522 288,058 184,513 184,513 $ 163,177 790,977 1,079,035 288,058 75 CITY OF NATIONAL CITY Other Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Licenses and permits $ 12,594 12.594 4,200 (8,394) Fines and forfeitures 95,327 95,327 92,560 (2,767) Interest and rents 8,500 8,500 28,087 19,587 Intergovernmental 6,631,508 6,631,508 5,946,896 (684,612) Charges for services 1,063,900 1,063,900 1.439,267 375,367 Other revenues 503,304 503,304 602,980 99,676 Total revenues 8,315,133 8,315,133 8,113,990 (201,143) Expenditures: Current: General government 2,403,186 2,403,186 1.853,392 549,794 Public safety 4,073,885 4,073,885 2,274,135 1,799,750 Community development 447,263 447,263 216,964 230,299 Ilealth 218,902 218,902 128,004 90,898 Culture and leisure 1.820,815 1,820,815 1,645,287 175,528 Capital outlay 3,949,533 3,949,533 15,838 3,933,695 Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources: Transfers in Transfers out Total other financing sources Net change in fund balances Fund balance, beginning of year Fund balance, end of year 12,913,584 12,913,584 6,133,620 6,779,964 (4.598,451) (4,598,451) 1.980,370 6,578,821 2.047.464 (1.202.297) 2,047,464 (1,202,297) 845,167 845,167 (3,753,284) (3,753,284) 6,570,859 2,047,464 (1,1 17,756) 84,541 929.708 84,541 2,910,078 6.663,362 6,570,859 6,570,859 $ 2.817,575 2,817,575 76 9,480.937 6,663,362 CITY OF NATIONAL CITY Nutrition Program Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30. 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 292,691 292,691 338,373 45,682 Other revenues 184,718 184,718 206,036 21,318 Total revenues 477,409 477,409 544,409 67.000 Expenditures: Current: Community development 806,374 806,374 791,032 15,342 Total expenditures 806,374 806,374 791,032 15,342 Excess (deficiency) of revenues over (under) expenditures (328,965) (328,965) (246,623) 82,342 Other financing sources: Transfers in 1,916,103 1,916,103 1,716,103 (200,000) Total other financing sources 1,916,103 1,916,103 1,716.103 (200,000) Net change in fund balances 1,587,138 1,587,138 1,469,480 (117,658) Fund balance (deficit), beginning of year (1,385,563) (1,385,563) (1,385,563) - Fund balance (deficit), end of year $ 201,575 201,575 83,917 (117,658) 77 CITY OF NATIONAL CITY Sewer Service Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Interest and rents $ - 196,696 196,696 Charges for services 7,141.800 7,141,800 7.120.640 (21,160) Other revenues - 1,265,131 1,265,131 Total revenues 7,141,800 7,141.800 8,582.467 1,440,667 Expenditures: Current: I Iealth 13,530,033 13,530,033 7,633,903 5,896,130 Total expenditures 13,530,033 13,530,033 7,633,903 5,896,130 Net change in fund balances (6,388,233) (6,388,233) 948,564 7,336,797 Fund balance, beginning of year 15,125,094 15,125,094 15,125.094 - Fund balance, end of year $ 8,736,861 8,736,861 16,073,658 7,336,797 78 CITY OF NATIONAL CITY Low and Moderate Income I lousing Program Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Revenues: Taxes Interest and rents Other revenues Total revenues Expenditures: Current: Community development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balance, beginning of year Fund balance, end of year Budget Amounts Original Final $ 2,808,046 2,808.046 200.000 3,008.046 878,132 878,132 2,129,914 200.000 Actual Amounts Variance with Final Budget Positive (Negative) 2,796,072 (11,974) 264,663 264,663 (200,000) 3.008,046 3.060,735 878,132 878,132 670,912 670,912 2,129,914 2,389,823 52,689 207,220 207,220 259,909 927,881 927,881 (2.042.002) (2,042,002) (1,434,245) 607,757 (2.042.0(12) (2,042,002) (506,364) 1,535,638 87,912 10,991,134 $ 11,079,046 79 87.912 10,991.134 11,079,046 1,883,459 1,795,547 10,991,134 12,874,593 1,795,547 (This page intentionally left blank) 80 NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS: General Capital Outlay Fund This fund is used to account for funds set aside from the proceeds of sale of and rental from surplus real property for the City's five-year capital improvement program. Library Fund This fund is used to account for the operation of the National City Library. Parks Maintenance Fund This fund is used to account for operating and maintaining the City's parks. Library Capital Outlay Fund This fund is used to account for revenues from real property transfer taxes set aside to finance capital outlay and capital improvement expenditures of the National City Library. Gas Tax Fund This fund is used to account for the City's share of state gas tax revenue restricted for street improvement and maintenance. Parks and Recreation Capital Outlay Fund This fund is used to account for revenues from dwelling fees set aside for capital improvement expenditures of the Parks and Recreation Department. Community Development Block Grant Fund This fund is used to account for federal funds received from the U.S. Department of Housing and Urban Development — Community Development Block Program. HUD Program Income Fund This fund is used to provide for the funding of CDBG program activities as approved by the City Council utilizing HUD program income. Home Program Fund This fund is used to account for federal hinds received from the U.S. Department of Housing and Urban Development Home Program. Asset Forfeiture Fund This fund is used to account for the receipt and expenditure of funds provided by the federal government's asset seizure fund to be used exclusively for law enforcement purposes. 81 NON -MAJOR GOVERNMENTAL FUNDS, (CONTINUED) DEBT SERVICE FUND: National City Joint Powers Financing Authority Fund This fund is used to account for funds maintained by the trustee bank solely for the purpose of paying, when due and payable, the principal of or interest on the lease revenue bonds and lease revenue refunding bonds issued by the National City Joint Powers Financing Authority. Library Bond Debt Service Fund This fund is used to account for debt service of the Library. CAPITAL PROTECTS FUNDS: Library Construction Project Capital Projects Fund This fund is used to account for activities of the library construction. Proposition "A" Capital Projects Fund !his fund is used to account for the City's allocation of the 2% transactions and use tax imposed by Proposition "A" (San Diego Transportation Improvement Program Ordinance) passed by the voters in San Diego County in November 1987. STP Local/TransNet Highway Fund This fund is used to account for funds received from the San Diego Association of Governments ("SANDA(r) for TransNet projects. State -Local Partnership Fund This fund is used to account for the receipt and expenditures of funds provided by the State under the State -Local Transportation Partnership Program. Traffic Congestion Relief Fund This fund is used for the maintenance, rehabilitation and reconstruction of transportation related to Capital Projects; specifically pertaining to local streets and roads. Fire Construction Project Capital Projects Fund This fund is used to account for activities for fire department construction. 82 CITY OF NATIONAL CITY Nonmajor Governmental Funds Combining Balance Sheet June 30_ 2010 Special Revenue Funds General Library Park and Capital Parks Capital Recreation Outlay Library Maintenance Outlay Gas Tax Capital Outlay ASSETS Cush and investments $ 1-023-4I8 - - 749,192 623,444 1279,815 Restricted cash and investments with fiscal agent - - Accounts receivable - 976 1.138 7.921 - 402 Property tax receivable - Interest receivable 1.056 Due from other funds - - - - Due from other governmental entities - - - - 98.491 Land held for resale - - - - Contracts, notes and loans receivable - - Total assets LIARIITRES AND RIND RAI.ANC1:S Liabilities: Accounts payable Salaries payable Due to other funds Deferred revenue Advances from other fiords Total liabilities Fund balances: Reserved: Encumbrances Land held for resale Contracts, loans, notes receivable Debt service Total reserved Unreserved, designated: Continuing appropriations Total reserved. designated Unreserved, undesignated: Special revenue finds Capital projects funds Total fund balances (deficits) Total liabilities and fund balances $ 1_023.418 976 1.138 757.113 722,991 1,280,217 $ 3,322 30,391 139.4(12 4,995 19.773 17.311 20.791 5,977 872 173,115 42,079 6,849 11.289 7.065 20,791 - - 11.289 7,065 1.000,7.36 - - - 592,841 662.016 1.000.736 - - 592,841 662.016 1.891 (172,139) (40.911) 757.113 112.012 611.136 1.023.418 (172,139) (40.941) 757.113 716,142 1,280,217 5 1,023.418 976 1.138 757.113 722991 1280,217 83 Special Revenue Funds Debt Service Community HUD Joint Powers Development Program HOME Asset Financing library Block Grant Income Program Forfeiture Authority Bonds 415,510 2,160,158 548,512 I 739.568 1.094,028 290,563 - - 323 582,390 2.705 124.561 223.349 3.635 1,002 145.311 875.000 2.797.102 872953 1860.153 5,981,206 549,514 1 739,891 339,343 2.416 146,909 108,737 57.021 597.405 57,021 16.896 25.157 115,768 1999 1,647.039 1,525 1,764,806 1.525 875.000 223,349 2,797,102 - 1.094.028 - 1 739,891 16.896 1.342.534 3.672,102 1 739,891 479.318 - 500.000 18.028 479,318 - 500,000 18.028 (220,666) 460.598 44,298 529.961 275,548 1.803.132 4,216.400 547.989 1 739,891 872,953 1,860,153 5,981,206 5495I4 1 739,891 84 (Continued) CITY OF NATIONAL CITY Nonmajor Governmental Funds Combining Balance Sheet. Continued June 30, 2010 Capital Projects Funds Library STP Local/ State- Traffic Fire Total Other Consluction TransNet Local Congestion Construction Governmental Bonds Proposition A Highway Partnership Relief Project Funds ASSETS Cash and investments $ 137,770 2.091,851 122,344 18.116 9,909,699 Restricted cash and investments with fiscal agent - - - - 1,094,028 Accounts receivable - - - 301,000 Property tax receivable - 323 Interest receivable 250 3,809 - 223 - - 12,680 Due from other funds - 124,561 Due from other governmental entities 2,597 144,747 973,536 Land held for resale - - - 875,000 Contracts. notes and loans receivable - - - 3,020,451 Total assets $ 138.020 2.095.660 2,597 122.567 144,747 18.116 16,311,278 LIABILITIES AND FIND BAF.ANCES Liabilities: Accounts payable $ - 8.585 22,421 558,957 Salaries payable - 5.141 - - - 60,592 Due to other fiords - 313.382 206,284 - 823,288 Deferred revenue - 95,493 - 1,851,269 Advances from other funds 760.034 760,034 Total liabilities 773.760 335,803 95,493 206.284 - 4.054,140 Fund balances: Reserved: Encumbrances - 40,529 17,431 - 139,158 Land held for resale - - - - 875,000 Contracts, loans. notes receivable - - - - - - 3,020,451 Debt service - - - - 1,833,920 'Iota] reserved 40.529 17,431 - - - 5,868,529 Unreserved. designated: Continuing appropriations - 2,341,887 87,638 - 2,035 - 5,684,499 Total reserved. designated - 2341,887 87.638 2,035 - 5-684,499 Unreserved. undesignated: Special revenue limds - - - 2,083,263 Capital projects funds 138,020 (1,060,516) (138,275) 27.074 (63,572) 18.116 (1,379,153) lotalfund balances 138.020 1,321,900 (333,206) 27,074 (61537) 18,116 12,257,138 Total liabilities and fund balances 5 138,020 2_095.660 2,597 122,567 144,747 18,116 16,31 1.278 85 (This page intentionally left blank) 86 Revenues: Taxes Fines and forfeitures Interest and rents Intergovernmental Charges for services Other revenues CITY OF NATIONAL CITY Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2010 Special Revenue Funds General Library Park and Capital Parks Capital Recreation Outlay Library Maintenance Outlay Gas Tax Capital Outlay 632.544 737,075 78.480 5.904 228,093 6,172 7.194 1.097.704 - Total revenues - 638.716 Expenditures: Current: General government Public safety Transportation Community development Culture and leisure Capital outlay Debt service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures 1,209 1.555,436 21.316 744.269 99.796 1,103.608 228,093 341,252 1,054,431 - 20,868 - 19.607 4,209 1,555,436 1_054,431 20,868 341,252 19,607 (4209) (916.720) (310.162) 78.928 762,356 208.486 Other financing sources (uses): Transfers in - 688.326 236,181 - Transfers out - - (700,000) Total other financing sources (uses) - 688,326 236,181 - (700,000) Net change in bind balances (4.2091 (228.394) (73,981) 78,928 62.356 208,486 Fund balances_ beginning of year, as restated 1.027.627 56.255 33.040 678,185 653.786 1,071,731 Fund balances (deficits), end of year $ 1.023.418 (172.139) (40.941) 757,113 716.142 1,280,217 87 Special Revenue Funds Debt Service Community HUD Joint Powers Development Program HOME Asset Financing Library Block Grant Income Program Forfeiture Authority Bonds 142,350 - 18565 79,788 3,461 11 817,696 - 631.387 - 486.796 396 - - - 428,459 817,696 18.961 711.175 145,811 486,807 428,459 82.401 218,991 76.676 253,729 225.000 170,776 86.924 285.128 137,786 1.027,573 224,710 285,128 38,887 3,078 325,000 155,000 161,807 244,500 38,887 486,807 402,578 (209,877) (205,749) 426,047 106,924 - 25,881 522,489 - (1,256.501) 522.489 (I.256.50I ) 312.612 (1,462,25(1) 426.047 106,924 (37,064) 3,265,382 3,790.353 441.065 25,881 714.010 275.548 1,8(13.132 4,216,400 547.989 1 739,891 88 (Continued) CITY OF NATIONAL CITY Nomnajor Governmental Funds Combining Statement of Revenues_ Expenditures and Changes in Fund Balances, Continued Revenues: Taxes Fines and forfeitures Interest and rents Intergovernniental Charges for services Other revenues Total revenues Expenditures: Current: General government Public safety Transportation Community development Culture and leisure Capital outlay Debt service: Principal Interest and fiscal charges For the Year ended June 30, 2010 Capital Projects Funds Library STP Local/ State- Traffic Fire Total Other Construction TransNet Local Congestion Construction Governmental Bonds Proposition A Highway Partnership Relief Project Funds $ 1,448,099 142.350 2.623 14,407 1.440 2,933 357,225 14.656 1,500,000 403.547 514,332 - 5,479,484 21,316 428,855 17.279 1,514,407 403.547 1.440 514,332 2,933 7,877,329 1,844.119 500,597 506.599 "fotalexpenditures - 1,844.119 500,597 Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out 'Dotal other financing sources (uses) Net change in fund balances 17.279 (329-712) (97.050) 1,440 7.733 (391,067) (1,338.977) Fund balances. beginning of tear_ as restated 120,741 1.651.612 (236.156) 25,634 (69,270) 409.183 13,596,115 85,479 38,887 341,252 591,043 2,686,543 3-149,728 705.000 714,869 506,599 - 8.312,801 17,279 (329.712) (97,050) 1,440 7.733 2,933 (435,472) 1,446, 996 (394,000) (2350,501) (394,000) (903,505) Fund balances (deficits). end of year $ 138.020 1,321.900 (33 3.206) 27,074 (61,537) 18.116 89 12.257.138 CITY OF NATIONAL CITY General Capital Outlay Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Expenditures: Capital outlay $ 1,019,945 1,019,945 4,209 1,015,736 Total expenditures 1,019,945 1,019,945 4,209 1,015,736 Net change in fund balances (1,019,945) (1,019,945) (4,209) 1,015,736 Fund balance, beginning of year 1,027,627 1,027,627 1,027,627 - Fund balance, end of year $ 7,682 7,682 1,023,418 1,015,736 90 CITY OF NATIONAL. CITY Library Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30,2010 Revenues: Taxes Intergovernmental Total revenues Expenditures: Current: Culture and leisure Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Total other financing sources (uses) Net change in fund balances Fund balance. beginning of year Fund balance (deficit), end of year Budget Amounts Original Final $ 648,300 6,600 654,900 1,671,465 1.671,465 648,300 6,600 654,900 Actual Amounts 632,544 6,172 638,716 1,671,465 1.555,436 1,671,465 1,555,436 (1,016,565) (1,016,565) (916,720) 688,326 688.326 (328,239) 56.255 688,326 688,326 688,326 688,326 (328.239) (228,394) 56,255 $ (271,984) (271,984) 91 56,255 Variance with Final Budget Positive (Negative) (15,756) (428) (16,184) 116.029 116,029 99,845 99,845 (172,139) 99,845 CITY OF NATIONAL CITY Parks Maintenance Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30. 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 755,379 755,379 737,075 (18,304) Intergovernmental 7,700 7,700 7,194 (506) Total revenues 763,079 763,079 744,269 (18,810) Expenditures: Current: Culture and leisure 1,104,229 1,104,229 1,054,431 49,798 Total expenditures 1,104,229 1,104,229 1,054,431 49,798 Excess (deficiency) of revenues over (under) expenditures (341,150) (341,150) (310,162) 30,988 Other financing sources: Transfers in 236,181 236,181 236,181 Total other financing sources 236,181 236,181 236,181 Net change in fund balances (104,969) (104,969) (73.981) 30,988 Fund balance, beginning of year 33,040 33,040 33,040 - Fund balance (deficit), end of year $ (71,929) (71,929) (40,941) 30,988 92 CITY OF NATIONAL CITY Library Capital Outlay Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Taxes Charges for services Total revenues Expenditures: Capital outlay Total expenditures Net change in fund balances Fund balance, beginning of year Fund balance, end of year For the Year Ended June 30, 2010 Budget Amounts Actual Original Final Amounts $ 84,052 84,052 78,480 18,200 18,200 21,316 102,252 102,252 99,796 98,700 98,700 20,868 98,700 98,700 20,868 3,552 3.552 78,928 678,185 678,185 678,185 $ 681,737 681,737 757,113 93 Variance with Final Budget Positive (Negative) (5,572) 3,116 (2,456) 77,832 77,832 75,376 75,376 CITY OF NATIONAL CITY Gas Tax Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Interest and rents Intergovernmental Total revenues Expenditures: Current: Transportation Total expenditures Excess (deficiency) of revenues over (under) expenditures For the Year Ended June 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 26,200 26,200 5,904 (20,296) 1,032,500 1,032,500 1,097,704 65,204 1,058.700 1.058,700 1.103,608 44,908 943,484 943,484 341.252 602,232 943,484 943,484 341,252 602,232 115,216 115.216 762,356 647,140 Other financing sources (uses): Transfers out (700,000) (700,000) (700,000) Total other financing sources (uses) (700,000) (700,000) (700,000) Net change in fund balances (584,784) (584,784) 62,356 647,140 Fund balance, beginning ofvear 653,786 653,786 653,786 - Fund balance, end ofvear $ 69,002 69,002 716,142 647,140 94 CITY OF NATIONAL CITY Park and Recreation Capital Outlay Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Interest and rents $ 248,000 248,000 228,093 (19,907) Total revenues 248,000 248,000 228,093 (19,907) Expenditures: Current Capital outlay Total expenditures Net change in fund balances Fund balance, beginning of year Fund balance, end of year 682.988 682,988 682,988 682.988 (434,988) (434,988) 1,071.731 19,607 663,381 19,607 663,381 208,486 643,474 1.071.731 1.071,731 $ 636.743 636,743 1,280,217 643,474 9 CITY OF NATIONAL CITY Community Development Block Grant Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 1,107.495 1.107,495 817,696 (289,799) Total revenues 1.107,495 1,107,495 817,696 (289,799) Expenditures: Current: General government 82,037 82,037 82,401 (364) Community development 239,492 239,492 218,991 20,501 Culture and leisure 83,130 83.130 76,676 6,454 Capital outlay 863,439 863,439 253,729 609,710 Debt service: Principal - - 225,000 (225,000) Interest and fiscal charges 1,776 1,776 170,776 (169,000) Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) 1,269,874 1,269,874 (162,379) (162.379) (241,334) 1,027,573 242,301 (209,877) (47,498) 522,489 522,489 (241,334) - 241,334 (241,334) (241,334) 522.489 763,823 Net change in fund balances (403,713) (403,713) 312,612 716,325 Fund balance (deficit), beginning of year (37,064) (37,064) (37,064) - Fund balance (deficit), end of year $ (440,777) (440,777) 275,548 716,325 96 CITY OF NATIONAL CITY HUD Program Income Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Interest and rents $ 18,565 18,565 Other revenues - - 396 396 Total revenues Expenditures: Current: General government 33,937 33,937 Community development 1,031,883 1,031,883 Culture and leisure 19,256 19,256 Capital outlay 54,290 54,290 Debt service: Principal 795,067 795,067 Interest and fiscal charges 1,036,650 1,036,650 Total expenditures Excess (deficiency) of revenues over (under) expenditures 2,971.083 2,971,083 18,961 18,961 86,924 33,937 944,959 19,256 54,290 795,067 137,786 898,864 224,710 2,746,373 (2,971,083) (2,971,083) (205,749) 2,765,334 Other financing sources (uses): Transfers out (328,620) (328,620) (1,256,501) (927,881) Total other financing sources (uses) (328,620) (328,620) (1,256,501) (927,881) Net change in fiend balances (3,299,703) (3,299,703) (1,462,250) 1,837,453 Fund balance, beginning ofvear 3,265,382 3,265,382 3,265,382 Fund balance (deficit) , end of year S (34,321) (34,321) 1,803,132 1,837,453 97 CITY OF NATIONAL CITY HOME Program Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Interest and rents $ - 79,788 79,788 Intergovernmental 1,201,730 1,201,730 631.387 (570,343) Total revenues 1.201,730 1,201,731) 711.175 (490,555) Expenditures: Current: Community development 1,099.882 1,099.882 285.128 814,754 Total expenditures 1,099,882 1,099.882 285,128 814,754 Net change in fund balances 101,848 10L848 426,047 324,199 Fund balance, beginning of year, as restated 3,790,353 3,790,353 3,790,353 Fund balance, end of year $ 3,892,201 3,892,201 4.216,400 324,199 98 CITY OF NATIONAL CITY Asset Forfeiture Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Fines and forfeitures Interest and rents Total revenues Expenditures: Current: Public safety Total expenditures Net change in fund balances Fund balance, beginning of year Fund balance, end of year For the Year Ended June 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 119.058 15,400 119,058 15,400 134,458 134,458 44.865 44,865 44.865 44.865 89.593 89,593 441,065 142.350 23,292 3,461 (11,939) 145,811 11,353 38,887 5,978 38,887 5,978 106,924 17,331 441,065 441,065 $ 530,658 530,658 99 547.989 17,331 CITY OF NATIONAL CITY Joint Powers Financing Authority Debt Service Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30. 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Interest and rents $ - - 11 11 Intergovernmental 490,656 490.656 486.796 (3,860) Total revenues Expenditures: Debt service Principal Interest and fiscal charges Total expenditures 490.656 490,656 486,807 (3,849) 325,000 325,000 325,000 161.798 161,798 161,807 (9) 486.798 486,798 486.807 (9) Net change in fund balances 3,858 3,858 - (3,858) Fund balance, beginning of year 1 1 Fund balance, end of year $ 3,859 3,859 1 (3,858) 100 CITY OF NATIONAL CITY Library Bond Debt Service Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Other revenues $ 488,900 488,900 428,459 (60.441) 'total revenues 488,900 488,900 428,459 (60,441) Expenditures: Current: General government - - 3,078 (3,078) Debt service Principal 155,000 155,000 155,000 Interest and fiscal charges 244,500 244,500 244.500 - Total expenditures 399,500 399,500 402,578 (3,078) Net change in fund balances 89,400 89,400 25.881 (63,519) Fund balance, beginning of year 714,010 714,010 714,010 Fund balance, end of year $ 803,410 803.410 739.891 (63,519) 101 CITY OF NATIONAL CITY Library Construction Capital Projects Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Interest and rents $ 3,200 3.200 2,623 (577) Intergovernmental - - 14,656 14,656 Total revenues 3,200 3.200 17,279 14,079 Expenditures: Capital outlay Total expenditures - - - - Net change in fund balances 3,200 3,200 17,279 14,079 Fund balance, beginning of year 120,741 120,741 120.741 - Fund balance, end of year $ 123,941 123,941 138,020 14,079 102 CI"I'Y OF NATIONAL CITY Proposition A Capital Projects Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Interest and rents $ 72,511 72,511 14,407 (58,104) Intergovernmental 924,000 924,000 1,500,000 576,000 Total revenues 996,51 1 996,511 1,514,407 517,896 Expenditures: Capital outlay 4,490,643 4,490,643 1,844,119 2,646,524 Total expenditures 4,490,643 4,490,643 1.844,1 19 2,646,524 Net change in fund balances (3,494,132) (3,494,132) (329,712) 3,164,420 Fund balance, beginning of year 1,651,612 1,651,612 1,651,612 - Fund balance, end of year $ (1,842,520) (1,842,520) 1,321,900 3,164,420 103 CITY OF NATIONAL CITY STP Local/TransNet Highway Capital Projects Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Interest and rents $ 20,852 20,852 - (20,852) Intergovernmental 403.547 403,547 Total revenues 20.852 20,852 403,547 382,695 Expenditures: Capital outlay 599,742 599,742 500,597 99,145 Total expenditures 599,742 599,742 500,597 99,145 Net change in fund balances (578,890) (578,890) (97,050) 481,840 Fund balance (deficit), beginning of year (236,156) (236,156) (236,156) - Fund balance (deficit), end of year $ (815,046) (815,046) (333,206) 481,840 104 CITY OF NATIONAL C1TY State - Local Partnership Capital Projects Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Interest and rents For the Year Ended June 30. 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 2,671 2,671 1.440 (1,231) Total revenues 2,671 2.671 1,440 (1,231) Net change in fund balances 2,671 2.671 1.440 (1,231) Fund balance, beginning of year 25,634 25.634 25,634 - Fund balance, end of year 5 28,305 28.305 27,074 (1,231) 105 CITY OF NATIONAL CITY Traffic Congestion Relief Capital Projects Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 578,823 578,823 514.332 (64,491) Total revenues 578,823 578,823 514,332 (64,491) Expenditures: Current_ Capital outlay 508,634 508,634 506,599 2,035 Total expenditures 508,634 508,634 506,599 2,035 Net change in fund balances 70,189 70,189 7,733 (62,456) Fund balance (deficit), beginning ofyear (69,270) (69,270) (69,270) - Fund balance (deficit), end ofyear $ 919 919 (61,537) (62,456) 106 CITY OF NATIONAL CITY Fire Construction Capital Projects Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Revenues: Interest and rents Total revenues Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 2,933 2,933 2,933 2,933 2,933 2,933 (394.000) 394,000 (394.000) 394,000 Net change in fund balances - - (391,067) 396,933 Fund balance, beginning of year 409,183 409,183 409,183 Fund balance, end of year $ 409,183 409,183 18,116 396,933 107 INTERNAL SERVICE FUNDS Facilities Maintenance Fund This fund is used to account for the costs of maintaining all City -owned buildings in a clean, safe, workable, and pleasant condition. Liability Insurance Fund This fund is used to account for the costs of maintaining the City's workers' compensation and liability insurance programs. General Services Fund This fund is used to account for the costs of maintaining the City's centralized procurement system providing supplies. equipment, and certain services for all City departments. Information Systems Maintenance Fund This fund is used to account for the costs of maintaining the City's computer -related information systems. Office Equipment Depreciation Fund This fund is used to account for the costs to replace City office equipment. Telecommunications Revolving Fund This fund is used to account for the costs of maintaining the City's telecommunications system. General Accounting Services Fund This fund is used to account for the costs of general accounting services. Motor Vehicle Services Fund This fund is used to account fort the City's costs of preventative maintenance and repairs for all City vehicles including police, fire, general administrative, park, sewer and public works equipment. Equipment Replacement Reserve Fund This fund is used to account for the costs to replace City general equipment. Unemployment Insurance Reserve Fund This fund is used to account for a reserve for unemployment insurance. 108 CITY OF NATIONAL CITY Combining Statement of Net Assets Internal Service Funds June 30.2010 Information Office Facilities Liability General Systems Equipment Maintenance Insurance Services Maintenance Depreciation ASSETS Current assets: Cash and investments $ 752,771 7,066,242 491,045 1,085,711 1,877,507 Cash and investments with fiscal agents 1248,323 - - Accounts receivable 918 1.133 72.231 Inventories - 14.649 - Total current assets 2,001,094 7,067,160 506,827 1,157,942 1,877,507 Noncurrent assets: Capital assets: Nondepreciable assets Depreciable assets, net of accumulated depreciation Total capital assets Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts payable and accrued liabilities Salaries payable Capital lesases payable - due within one year Compensated absences Self-insurance claims payable - due within one year Total current liabilities Noncurrent liabilities: Capital lesases payable - due in more than one year Self-insurance claims payable - due in more than one year Total liabilities NET ASSETS 507,000 50'7,000 507,000 98,878 109,819 98,878 109,819 98,878 109,819 2,508,094 7,067,160 506,827 1,256,820 1,987,326 160,576 91.117 18.639 1,029 6,861 3.830 12.357 33.661 2.076 21,381 - 58,927 2,272 4,025 13,693 1.597,744 259.523 1.692 162 14.716 1.733,779 1,993302 4.286,256 5.978.418 14.716 28,126 33,661 28.126 33.661 Invested in capital assets. net of related debt 507.000 - 98.878 109.819 Unrestricted 7.792 1.088,742 492.111 1.129.816 1.843.846 Total net assets $ 514.792 1.088,742 492,111 1,228,694 1,953,665 109 General Motor Equipment Unemployment Telecommunications Accounting Vehicle Replacement Insurance Revolving Services Services Reserve Reserve 722,290 527,883 1,179,324 722,290 527,883 722,290 527,883 37,374 1.296 38.670 4,451 15.145 266,038 187.552 1,179.324 266,038 843,264 298,274 Total 14,156,363 1,248.323 74.282 14.649 187.552 1 5.493.617 507.000 1,350,235 843.264 298.274 1.857_235 843,264 298,274 - 1,857,235 2,022,588 564,312 33.585 1.412 9,841 187.552 17,350,852 381,394 51.856 21.381 66,642 33.000 - - 178,559 1.597.744 86.238 76.426 1.412 - 2,230,934 1.73 3.779 4.286.256 38,670 86,238 76,426 1.412 - 8250.969 683.620 441,645 683,620 441,645 843264 298,274 - 1.857.235 1,102,898 264,626 187,552 7.242,648 1.946.162 562.900 110 187.552 9,099.883 CITY OF NATIONAL CITY Combining Statement of Revenues. Expenses and Changes in Net Assets Internal Service Funds For the Year Ended June 30,2010 Information Office Facilities Liability General Systems Equipment Maintenance Insurance Services Maintenance Depreciation Operating revenues: Services charges $ 2,099,016 2,859,483 432,960 714,624 425,616 Other revenues 163 408.116 - 10.777 7btal operating revenues 2.099.179 3,267,599 432,960 725,401 425,616 Operating expenses_ Personnel services 728,462 78,398 101387 119,876 Maintenance and operations 1.800,856 3,671,881 195,952 492,393 220,129 Depreciation - - 31,006 43.459 Total operating expenses 2,529,318 3,750,279 297,339 643,275 263,588 Operating income (loss) (430,139) (482,680) 135,621 82,126 162,028 Transfers in 1.326,860 - Transfers out (200,000) - (400.000) Change in net assets 896,721 (682,680) 135,621 82.126 (237,972) Net assets. beginning of year (381,929) 1,771,422 356,490 1,146,568 2,191,637 Net assets, end of year $ 514,792 1,088,742 492,111 1,228,694 1,953,665 General Motor Equipment Unemployment Telecommunications Accounting Vehicle Replacement Insurance Revolving Services Services Reserve Reserve Total 397,812 865,908 1,577352 - 38,820 9,411,591 7.335 1.892 949 - 429,232 405,147 867,800 1,578.301 - 38.820 9,840,823 57,531 570.626 435.362 - - 2,091,642 291,311 210,808 906.939 16.943 55.568 7,862,780 3.737 - 220.768 23.654 - 322,624 352,579 781,434 1,563.069 40,597 55,568 10.277,046 52.568 86.366 15.232 (40.597) (16,748) (436.223) 1.326,860 (200,000) (230.000) - (1,030,000) (147,432) (143,634) 15,232 (40,597) (16.748) (139,363) 831,052 585,279 1,930,930 603,497 204,300 9,239,246 683,620 441,645 1,946,162 562,900 187,552 9,099,883 112 Cash tows from operating activities: Cash received from customers/other funds Cash payments to suppliers Cash payments for general and administrative Cash received from (payments to) other CITY OF NATIONAI. CITY Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 2010 Information Office Facilities Liability. General Systems Equipment Maintenance Insurance Services Maintenance Depreciation 2.099.016 (1.794.706) (726,895) 163 2.858.600 (2.577.268) (89.923) 408.116 431.827 (186,800) (101,016) 714,624 (527,944) (95,760) 425,616 (265,529) Net cash provided (used) by operating activities (422,422) 599.525 144,011 90,920 160,087 Cash flows from capital and related financing activities: Acquisition or disposal of capital assets Issuance of lease payable Net cash provided (used) by capital and related financing activities Cash flows from non -capital financing activities: Cash received from other funds Cash paid to other funds (507,000) 1775 5,160 (109,269) 1,248.160 (109,269) 1.1753 56 Net cash provided (used) by non -capital financing activities 1,175,356 (200.000) (400.000) (200.000) - - (400.000) Net increase (decrease) in cash and cash equivalents 2.001,091 399,525 1447011 (18,349) (239,913) Cash and investments: Beginning of year - 6.666,717 347,034 1,104.060 2.117.420 End of year $ 2.001.094 7.066.242 491,045 1,085,711 1.877,507 Cash flows from operating activities: Operating income (loss) $ (430,139) (482,680) 135.621 82.126 162,028 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation - 31.006 43.459 Changes in current assets and liabilities: Accounts receivable - (883) (1,133) - - Inventories - - 6.399 - - Accounts payable and accrued liabilities 6.150 35.613 2.753 (35.551) (45,400) Salaries payable 1.983 (2,120) 159 (354) - Compensated absences (416) (9.405) 212 13.693 - Self-insurance claims payable 1.059,000 - - Total adjustments 7.717 Net cash provided (used) by operating activities $ (422.422) 113 1,082,205 8,390 599,525 144,011 8.794 (1.941) 90.920 160.087 General Motor Equipment Unemployment Telecommunications Accounting Vehicle Replacement Insurance Revolvine Services Services Reserve Reserve Total 397.812 865.908 1577.352 (284,544) (216034) (1,147.572) (57.609) (582,622) (432.466) 7.335 1.892 949 62.994 69,144 (1.737) (200.000) (230,000) 38,820 (16.943) (55.568) 9.409.575 (7.072.908) (2.086.291) 418.455 (16.943) (16.748) 668.831 (75,305) - - (691,574) 1,755,160 (75.305) - - 1.063.586 (200.000) (230.000) - (137,006) (160,856) (77,042) 859,296 688,739 1,256,366 722290 527.883 1,179324 52.568 86,366 15.232 3.737 - 220,768 (16.943) 282.981 266,038 (40,597) 1.175,356 (1,030.000) 145.356 (16,748) 1.877,773 204,300 13,526,913 187.552 15,404.686 (16.748) (436,223) 23.654 322,624 (2,016) - - - - - 6.399 6.767 (5,226) (240.633) - (275.527) (78) 171 (224) - - (163) (12.167) 3.120 - (4963) - - - - 1.059,000 10.426 (17.222) (16,9691 62.994 69,144 23,654 - 1.105.054 (1.737) (16.943) 114 (16.748) 668.831 FIDUCIARY FUNDS AGENCY FUNDS: Cobra Insurance Fund This fund is used to account for amounts collected by the City from retirees to pay their health insurance premiums. Miscellaneous Deposits Fund This fund is used to account for miscellaneous deposits collected by the City. 115 CITY OF NATIONAL CITY Statement of Changes in Assets and Liabilities Agency Funds For the Year Ended June 30, 2010 COBRA INSURANCE FUND Assets: Cash and investments Accounts receivable Balance Balance July 1, 2009 Additions Deletions June 30, 2010 5,163 235,940 (210,455) 30,648 1,768 - 1,768 "Total assets $ 5,163 237,708 (210,455) 32,416 Liabilities: Accounts payable $ 5,163 237,708 (210,455) 32,416 Total liabilities $ 5,163 237,708 (210,455) 32,416 Balance Balance July 1, 2009 Additions Deletions June 30, 2010 MISCELLANEOUS DEPOSITS FUND Assets: Cash and investments $ 593,376 188,436 (128,085) 653,727 Total assets $ 593,376 188,436 (128,085) 653,727 Liabilities: Accounts payable $ 593,376 188,436 (128,085) 653,727 Total liabilities $ 593,376 188,436 (128,085) 653,727 TOTAL AGENCY FUNDS Assets: Cash and investments Accounts receivable Total assets Liabilities: Accounts payable Depostis payable Total liabilities Balance Balance July 1, 2009 Additions Deletions June 30, 2010 $ 598.539 424.376 (338,540) 684,375 1,768 - 1,768 $ 598,539 426,144 (338.540) 686,143 $ 5,163 237,708 (210,455) 32,416 593,376 188,436 (128,085) 653,727 $ 598,539 426,144 (338,540) 686,143 116 (This page intentionally left blank) 117 DESCRIPTION OF STATISTICAL SECTION June 30. 2010 This part of the City of National City's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information say about the government's overall financial health. Contents: Pages Financial Trends - these schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity - these schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity - these schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future Demographic and Economic Information - these schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information - these schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. 118 119-128 129 - 136 137 - 144 145 - 146 147 - 149 CITY OF NATIONAL CITY Net Assets by Component' Last Eight Fiscal Years (accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 Governmental Activities: Invested in Capital assets, net of related debt 50,268232 92,988,998 101,117.839 Restricted 26-694,109 49,185,546 44,125.574 Unrestricted 44,331,476 (19,947,768) (18,088,821) Total governmental activities net assets 121.293,817 122,226,776 127,154,592 Business -type Activities: Invested in Capital assets. net of related debt Restricted Unrestricted Total business -type activities net assets Primary Government: Invested in Capital assets, net of related debt Restricted Unrestricted total primary government net assets 12.481,289 1,913,163 (241387) 11,844,051 1,157.359 1,142,236 14.153,065 1,1,1,13,646 62,749 521 28,607,272 44,090,089 1 35.446,882 93.916.816 37-597.633 (2,314,564) 129,199,885 11,204,491 10.854.822 2,439,808 2,134.043 13,644,299 12.988.865 104 833,049 112,322,330 50,342,905 46,565.382 (18,805,532) (18,088,821) 136,370.422 140,798.891 Notes: ' The City of National City implemented GASB 34 for the period ended June 30, 2003. Information prior to the implementation is not available. Source: City of National City Comprehensive Annual Financial Reports. 119 104.771,638 39.731,676 (2,314.564) 142,188,750 Fiscal Year 2007 2008 2009 2010 95.083.039 11,250.048 5_449.969 90,395,315 53,081,951 7376,407 141,783,056 150,853,673 10,407,472 1.778,624 98,809,386 48,092,405 8,481,142 9934Q829 55,609,616 7,351,272 155,382,933 162,301,717 5,584.797 5,354.253 1,996.801 2.101.803 12.186,096 7,581,598 105.490.511 43.028.672 5,449,969 95,980,112 55,078,752 7,376,407 153,969,152 158,435,271 5.148,247 1,524.392 7,456,056 6.672.639 104,163,639 50,194,208 8,481,142 104,489,076 57,134,008 7,351,272 162,838,989 168,974,356 120 CITY OF NATIONAL CITY' Change in Net Assets' z Last Eight Fiscal Years (accrual basis of accounting) Fiscal Year 2003 2004 2005 Expenses: Governmental Activities: General government 15,228,774 Public safety 21.7(17_1(18 Transportation 1,499,506 Community development 7.845,282 I lealth 5.683,202 Culture and leisure 4.054,931 Interest on Tong -tern debt (unallocated) 948.690 Depreciation expense (unallocated) 3,418,754 Total governmental activities expenses 60,386,247 Business -type Activities: TDA 3,003,738 Community development commission 1,618,597 Total business -type activities expenses 4,622,335 Total primary govermment expenses 65,008,582 4.840.699 20.691.526 3.1 18.995 18.7 72.524 6.776.50 3 5.32] .896 2.401,283 5,821,973 29,517.769 5,185,480 23,565,808 6,776,548 6,261,480 4,809,381 61,923,426 81,938,439 3,037,348 3,100,807 1,694,815 1,816,212 4.732,163 4,917,019 66,655,589 86,855,458 Program Revenue: Government Activities: Charges for services: General government 821,488 8,638,252 11,726,343 Public safety 2,159,250 1,294,738 552,384 Transportation 44,074 1,650 - Community development 1,111,801 902,399 467,810 ]lealth 1.733,821 1,225 Culture and leisure 278,139 637.165 559,500 Operating grants and contributions 12,666,340 21,815,537 30,438,839 Capital grants and contributions 3.474,092 136,227 186,889 Total governmental activities program revenue 25,289,005 33,427,193 43,931,765 Business -type Activities: Charges for services: TDA 1 210, 576 1,321,281 1,170,795 Cornnrunity development commission 1,806,538 1,819,435 1,843,918 Operating grants and contributions 1,352,066 1,365,549 1,307,972 Capital grants and contributions - - 52,137 Total business -type activities program revenue 4,369,180 4,506,265 4,374.822 Total primary government program revenue 29.658,185 37,9 33,458 48,306,587 Net Revenues (Expenses): Governmental activities (35,097,242) (28,496,233) (38,006,674) Business -type activities (253,155) (225,898) (542,197) Total Net Revenues (Expenses) (35,350,397) (28,722,131) (38,548,871) Notes: ' 'l he City of National City implemented GASB 34 for the period ended June 30, 2003. Information prior to the implementation is not available. 'The National City transit operation (TDA) was discontinued during fiscal year 2007. Source City of National City Comprehensive Annual Financial Reports. 121 fiscal Year 2006 2007 2008 2009 2010 3,141,167 5,2_19,116 5,881,015 5,224,693 24,841,408 25,943,803 27,218,309 29.670520 9,979,551 2,680,880 7,144,911 7,735.716 23,709,596 22,109,522 24.841,387 17,049.437 6,049,689 6,273,178 7.426,569 5,963,766 6,243,390 6,387,197 6,304,412 6,928,456 2,631,082 2.768,004 2,853,399 2525568 76,595,883 71,481.700 81,670,002 75,098,156 3,684.772 2.689,687 2,535,540 2.059,738 6,220,312 4,749,425 82.816.195 76.231,125 2,218,661 2,078,822 2,191_014 4 297.483 2.191.014 85,967,485 77,289,170 6,774,769 32.426,770 2,966,635 17,693,511 7,775,510 6.238,223 2,524.121 76,399,539 2,854,075 2,854,075 79.25 3.614 11,731,690 11,210,231 3,035.893 2331,329 3,624,978 182,214 74,987 192,291 1,820.369 1,976,414 557,715 767558 776,094 631,769 625,194 7,426,730 7,355.009 7,258,317 650,428 843,273 935,297 420,314 771,433 27,308,279 23,016,167 26,090,615 20,674,207 21,051,606 243,662 166,994 112,107 40,673,988 36,079,210 38,569,027 33,232,997 35,307,942 1,287,218 891,013 - 1,920,403 1,955,520 2.044,277 2.041,477 2.063.715 2,002,041 990340 - 5,209,662 3,836.873 2,044,277 2,041,477 2,063,715 45,883,650 39,916,083 40,613304 35.274,474 37.371,657 (35,921,895) (1.010,650) (36,932,545) (35.402.490) (912.552) (43.100.975) (2.253.206) (36.315,042) (45.354,181) (41.865.159) (149.537) (41.0915 97) (790.360) (42.014,696) (41.881.957) 122 CITY OF NATIONAL CITY Changes in Net Assets (Continued)' 2 3 Last Eight Fiscal Years (accrual basis of accounting) Fiscal Year 2003 2004 2005 General Revenue and Other Changes in Net Assets: Governmental Activities: Taxes: Property taxes 10,020,098 8,091,564 10.634,257 Sales taxes 14,746,115 16,458,677 18,723,950 Franchise taxes 1,267,983 1,369,136 1,421,404 Motor vehicle license 3,443,936 2,950,346 4,488,802 Transient occupancy taxes 959,078 927,873 1,002,664 Other taxes 922,906 44,092 Investment earnings 1,381,560 1,294,564 1,239,038 Other misc - 1,932,799 1,795,642 Rent 60,993 86,467 82,011 Transfers - Total governmental activities 32,802,669 33,155,518 39,387,768 Business -type Activities: Investment earnings 27,958 37,340 42,850 Other misc 9,684 Rent - Transfers Total business -type activities 27,958 47,024 42,850 Total primary government 32,830,627 Changes in Net Assets: Governmental activities Business -type activities Total Primary Government (2,294,573) (225.197) (2.5I9,770) 33,202,542 39,430,618 4.659,285 (178.874) 1,381,094 (499,347) 4.480,411 881,747 Notes: ' The City of National City implemented GASI3 34 for the period ended June 30, 2003. information prior to the implementation is not available. The National City transit operation (TDA) vas discontinued during fiscal year 2007. The City of National City implemented a one cent district tax during fiscal year 2007 causing an increase in sales tax revenue and investment earnings. Source: City of National City Comprehensive Annual Financial Reports. 123 Fiscal Year 2006 2007 2008 2009 2010 13,304,816 15,232,910 16,421,961 15,827.505 9.983.799 17,571,328 22,102,515 24,072,743 20,700.283 18,872.987 1,357,256 1,440,770 1,416,236 1,737,134 1,941,081 4,558,078 4,837,677 5,100,399 5,370.617 5,181,701 618,378 908,187 841,745 630.049 725.901 1,460,288 3,405.789 3,369,224 1,425.385 572,489 314,606 (27,714) - 270.269 461,101 80,711 85,527 305.082 733.454 763.157 2,378,910 - 39,265,461 47,985,661 53,906,300 46,694,696 38,502,216 59,721 82,069 27.618 23.995 6,943 34,653 27.714 (2,378,910) 94,374 109,783 (2,351.292) 23.995 6,943 39,359,835 3,343,566 (916,276) 2.427,290 48,095,444 51,555,008 46,718,691 38,509,159 12,583,171 (802,769) 10,805,325 (4,604,498) 11,780.402 6,200.827 124 4,829,537 (125.542) (2,589,381) (783,417) 4,703,995 (3,372,798) CITY OF NATIONAL CITY Fund Balances of Government Funds' Last Eight Fiscal Years (modified accrual basis of accounting) General Fund: Reserved Unreserved Total general fund All Other Governmental Funds: Reserved lhveserved Designated Undesignated: Special revenue funds Capital projects funds Debt service funds Total all other governmental funds Fiscal Year 2003 2004 2005 83,397 1,101,354 7,439,565 8,056,981 7,522,962 13,241,484 27.833,769 8,553,693 12,071,391 61,700,337 1,126,090 11.457.153 9,158,335 12,583,243 46,548,352 19,446,936 14,949,382 15,596,121 3,714,794 2,233,057 13,350,731 9,978,986 67,445,585 58,372,774 Notes:' The City of National City has elected to show only six years of data for this schedule. Source: City of National City Comprehensive Annual Financial Reports. 125 Fiscal Year 2006 2007 2008 2009 2010 1,171,748 1,501,213 1,727,692 1,164.034 1,126,408 11,620,584 15.585.066 18.298.540 17,276.654 10,699,617 12,792,332 17,086,279 20.026,232 18,440,688 11,826,025 21,676,313 25,7.58,503 23,958,237 22,821,977 27,090,770 7,416,455 15,554,052 10,832,286 18,774,518 19,332,920 17,346,630 15,595,453 23,394,266 19,853,304 21,864,572 7,107,297 4,201,534 9,750,823 4,428,286 (394,314) 53,546,695 61,109,542 67,935,612 65,878,085 67,893,948 126 CITY OF NATIONAL CITY Changes in Fund Balances of Government Funds" Last Eight Fiscal Years (modified accrual basis of accounting) Fiscal Year 2003 2004 2005 Revenues: Taxes $ 27,753,702 $ 30,511,964 $ 36,831,882 Licenses and permits 246,354 297,937 895,617 Fines and forfeitures 992,882 1,125,965 1,234,563 Interest and rents 1,813,396 1,411,209 2,176,345 Intergovernmental 20,190,583 20,493,616 26,776,553 Charges for services 6,607,356 7,767,770 9,386,573 Other revenues 1,784,270 1,719,177 6,726,776 'total revenues 59,388,543 63,327,638 84,028,309 Expenditures: Current: General government 16,217,080 4,895,801 5,087,967 Public safety 18,391,488 21,008,075 29,230,210 Transportation 1,499,506 1,587,585 2,904,547 Community development 8,179,3.56 18,922,721 25,061,379 Ilealth 5,683,202 6,776,503 6,776,548 Culture and leisure 1,070,165 5,321,896 6,261,480 Capital outlay 5,390,611 5,874,829 15,058,251 Debt service: Principal 715,000 745,000 985,000 Interest and fiscal charges 952,313 2,079,792 4,206,020 Total expenditures 61,098,721 67,212,202 95,571,402 Excess (deficiency) of revenues over (under) expenditures (1.710,178) (3,884,564) (11,543,093) Other Financing Sources (uses) Proceeds from issuance of debt 6,000,000 12,760,000 37,780,000 Payment to bond escrow agent - - (37,1 1 1,533) Proceeds from lease 261,937 Proceeds from sale of land - 1,997,101 - Transfers in 2,180,736 9,774,100 18.113.443 'transfers out (2,249,687) (9,749,297) (16,433.443) Total other financing sources (uses) 5,931,049 15,043,841 2.348,467 Net change in fund balances $ 4,220,871 $ 11,159,277 $ (9,194,626) Debt services as a percentage of noncapital expenditures 2.99% 4.61% 6.45% Notes: ' The City of National City has elected to show only six years of data for this schedule. 2 The City of National City implemented a one cent district tax during fiscal year 2007 causing an increase in sales tax revenue and investment earnings. Source: City of National City Comprehensive Annual financial Reports. 127 Fiscal Year 2006 2007 2008 2009 2010 $ 39,138,480 887,009 1,237,069 1,957,322 24,345,988 9,330,082 2,662,154 $ 46,477,691 872,998 939,083 3,405,789 23,863,565 9,328,340 2,358,768 $ 49,871,559 801,232 1,322,347 3,369,224 24,377,473 8,471,286 2,680,389 79,558,104 87,246,234 90,893,510 5,395,508 25,784,443 3,369,380 23,315,799 6,049,689 6,243,390 10,957,597 3,224,395 3,014,431 87,354,632 (7.796,528) 458,994 10,431,154 (7,931,1 54) 2,958.994 $ (4,837,534) 8.17% $ 47,448.811 742,616 1,303,006 2,387,531 21,575.928 8,371,734 1,926,494 83,756,120 4,723,185 5,354,513 4,559,601 25,130,868 26,528,937 27,958,385 3,236,793 3,756,298 3,079,647 20,992,576 23,721,153 18,029,047 6,273,178 7,426,569 5,963,766 6,387,197 6,276,859 6,928,456 2,074,818 1,636,398 14,450,567 2,871,863 2,891,709 3,024,837 2,898,962 2,864,933 2,689,608 74,589,440 80,457,369 86,683.914 12,656,794 10,436,141 8,182,525 (8.982,525) 13,096,724 (13,151,446) (800,000) (54,722) 11,856.794 $ 10,381.419 7.96% 730% 128 S 44,435,811 555,717 1,454,328 1,414,747 22,200,569 9,064,198 3,465,296 82,590,666 6,517,068 30,715,473 2,118,325 21,870,082 7,761,907 6,160,615 5,501,888 3,191,174 2,535,113 86,371,645 (2,927,794) (3,780,979) 8,1 19,544 (8,534,544) (415,000) $ (3,342,794) 9,692,695 (9,989,555) (296,860) (4,077,839) 7.91 % 7.08% CITY OF NATIONAL CITY Assessed Value and Actual Value of Taxable Property, Last Ten Fiscal Years Category Secured: Residential Property Commercial Property Industrial Property Institutional Property Irrigated Property Recreational Property Unknown Vacant Land Total Secured Unsecured SBE Nonunitary Total Taxable Assessed Value Total Direct Tax Rate Fiscal Year 2001 2002 2003 2004 $ 788,688,010 $ 858,637,562 536,869,078 556,740,563 161,263,160 174,165,831 2,457,011 5,322,431 2,906,723 11,700 28,414,815 2,416,278 356,276 31,387,754 $ 910,661,353 $ 977,435,596 583,704,244 578,140,896 184,467.093 193,821,784 4,045,907 25,829,220 4,778.254 3,082,188 504,895 943,052 29,305,007 37,815.694 1,520,610,497 100,902,500 11,076,114 1,629,026,695 103,159,838 11,138,470 1,717,466,753 1,817,068,430 107,821,517 10,884,643 119,327,613 11,768,070 $ 1,632,589,111 $ 1,743,325,003 $ 1,836,172,913 $ 1,948,164,113 0.46454% 0.497 17% Source: DDT, San Diego County Assessor (999/00- 2009/10 Combined Tax Rolls. Note: Exempt values are not included in Total. 129 0.51221% 0.5209 I Fiscal Year 2005 2006 2007 2008 2009 2010 $ 1,082,306,711 611.146,522 184,112,160 9,137,490 3.119.237 45,967,328 $ 1,249,018,196 677,325,076 237,113,411 6,77 3,868 4,369,771 41,602,858 $ 1,519,346,327 704,702,806 262,732,815 5,568,713 4,745,005 58,129,839 $ 1,675,533,232 744,585,873 264,996,707 4,382,185 6,697,142 68,304,793 $ 1,727,050,075 797.91 1,588 276,149,692 44,982,886 35,858 14.655,682 92.409,693 $ 1,486,019,671 871,757,000 288,230,654 54,514,910 36,575 26,509, 839 93,470,678 1,935.789,448 121,108,202 6.177,516 2,216,203,180 132,740,967 6.064,199 2,555,225,505 142,087,044 5,931,260 2,764,499,932 154,942,915 4,039,249 2,953,195,474 168,066,373 5,858,889 2,820,539,327 204,465,642 5,586,456 S 2,063,075,166 $ 2,355,008,346 $ 2,703,243,809 $ 2,923,482,096 S 3,127,120,736 $ 3,030,591,425 0.53714% 0.55593% 0.56773% 130 0.56773% 0.57066% 0.55977% CITY OF NATIONAL CITY Taxable Sales by Category Last Ten Calendar Years (in thousands of dollars) Fiscal Year 2000 2001 2002 2003 Apparel Stores $ 68,747 $ General Merchandise 111,743 Food Stores 22.414 Eating and Drinking Places 76.964 Building Materials 107,523 Auto Dealers and Supplies 505,252 Service Stations 50,383 Other Retail Stores 152,722 All Other Outlets 224,792 80,205 102,599 23,546 85.359 109,537 559,094 55,835 154,463 230,643 $ 81,644 91,623 24,853 89,744 116.682 599,535 54,877 161,749 237,629 $ 88.193 116.240 23.164 94,911 129,890 625,127 61.579 165,782 230,318 Total $ 1,320540 $ 1,401,281 $ 1.458,336 $ 1,535.204 Source: HDL, State of California Board of Equalization Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue. 131 Fiscal Year 2004 2005 2006 2007 2008 2009 $ 93,647 152,364 23,095 100,584 174,606 676,045 72.078 167,541 245,383 $ 100,833 156,538 23,922 101,601 176,404 688,366 74,105 174.630 290,701 $ 101,026 149,482 24,024 106,731 124,594 651,140 79,548 176.574 271.636 $ 101,928 144,515 24,781 107,109 100,055 587,778 81,823 150,407 266,338 $ 106,482 149,789 27,680 112,064 74,872 426,316 87,171 142,477 235,434 $ 1,705,343 $ 110,113 143,897 27.885 111.565 34,355 335,246 66.560 121,245 203,713 $ 1,787,100 $ 1,684,755 $ 1,564,734 $ 1,362,285 $ 1,154,579 132 Agency CITY OF NATIONAL CITY Direct and Overlapping Property Tax Rates, Last Ten Fiscal Years 1 Rate Per $100 of'Vaxahle Value) Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Basic Levy' 1 00000 1.00000 1.00000 1.00000 1.00000 1 00000 1.00000 1.00000 1 00000 1.00000 Chula Vista Elementary 0.02515 0.02396 0.02645 0.02723 0.02811 0.02738 002662 0.02029 0.01762 0.02507 Lower Sweetwater Fire Prot D Tax Rate Reduction 0.00000-0.16701 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 Metropolitan Water District 0.00880 0.00770 0.00670 0.00610 0.00580 000520 0.00470 0 00450 0.00430 0.00430 National City Gen_ Obligation Bonds 2002 Series A 0.00000 0 00000 0.00000 0 02275 0 02000 0 01770 0 01570 0.01430 0.1)1300 0.01270 San Diego Coin mninity College 0 00000 0 00000 0.00000 0 01786 001901 0.02495 0.01782 0.02740 0 01212 0.02482 San Diego Unified 000000 0.00000 0.00000 009575 0.08676 0.07590 007149 0.06007 0.06184 006670 San Diego Uni fled Lease/ Purchase 0 00575 0 09575 009575 0.00000 0.00000 0.00000 0 00000 0 00000 0 00000 0 00000 San Diego Water Authority 0.00091 0.00083 0.00075 000067 0.00000 0.00000 0.00000 0.000(1 0.00000 0.00000 Southwestern Community College Bond 2000 0.00000 0.01544 0.01304 0.00727 0.01301 0.01505 0.01405 0.01253 001320 0.03442 Sweetwater I lien Bond 0.00000 0.02527 0.02196 001956 001818 0.02252 0 02016 0.0471 1 0 04621 0.05580 Total Direct & Overlapping' lax Rates 1.13061 1 00194 1.16465 1.19719 1.19087 1.18870 1.17054 1. 18620 1 16829 1.22381 Cit's Share of l"4r Levy Per Prop 13' 017720 017720 017720 0 17720 0.17720 017720 0.17720 0_17720 0.17720 0.17720 General Obiligation Debt Rate 0.00000 0 00000 0.00000 0.02275 0.02000 0.01770 0.01570 0.01430 0 01300 0.01270 Redeselopmem Rate 1.00971 1.00853 1.00745 1.00677 1.00580 1 00520 1.00470 1.00450 1.00430 100430 Total Direct Rate 0.49349 0.49814 0.5.1297 0.52942 054468 0 56253 0 57282 058192 0.57590 0.55977 Analysis of the Basic Tax Levy' General Elementary National National CGry General Fund High Sweetwater Union County General Educational Revenue Augmentation Fund Southwestern Community College County School Service Regional Occupation Centers CWA C it) of National City Physically Handicapped Minors Elem. Comp. 'trainable Mentally Retarded Minors Elem. Comp. County School Service - Capital Outlay Children's Institutions Tuition Development Centers For I landicapped EC56811 Elem. Chula Vista Project (19, 84602) Chula Vista Project 119/84601) Autistic Pupils Minors Elemental); Cornp Total 0.28860 0.17720 0.17660 0 14930 0 13550 0 04760 0 00710 0 00453 0 00401 0.00314 0 00203 000179 0.00152 0 00045 0 00037 0 00019 0 (1001(1 $ 1 0000 'In 1978, Calilcrnia voters passed Proposition 13 which batlike properly tax sale al a 1.00%fixed amount. This 100 , is shared by all taxmg agencies for which the s.tbject property resides within. In addi0on to the .3D' fixed amount. property owners are charged taxes as a percentage of assessed pleperty vetoes ter toe payment of any voter approved bonds. 'Overlapping rates arc those of local and county governments 'hal apply to prnpery owners warn the Cry. Not all overlapping rates apply to all city property owners. 'Gies Share of 1, Levy ro based on the City's share of the general fund lax rate area with the largest net taxable value wilhirr the city_ ERAF general fund lax shrifts may no, be included in tax ratio figues Source: 1(1)1 San tqlrpuUmtata Asscswr 1999/00 2009,' 10 Combi tied Tas Rolls. 133 Taxpayer CITY OF NATIONAL CITY Principal Property Tax Pavers, Current Year and Nine Years Ago 2010 2001 Percentage of Total City Taxable Taxable Taxable Assessed Assessed Assessed Value Rank Value Value Rank Percentage of Total City Taxable Assessed Value Plaza Bonita LP S 237,591,621 1 7.84% PASHA Group 41,348,146 2 136% MPT of Paradise Valley LP 40306,136 3 13 3% Costco Wholesale 31579,508 4 1 04% Pacific Castle Bay Plaza LLC 26,530,200 5 0.88% Adventist Health System West 24,496,400 6 0 81°ro Prime Healihcare Services Foundation 23,103.000 7 0 76% Sweetwater Associates LP 22,890.307 8 0 76% G.W. Williams Company 22,750,226 9 0.75% Dexter Street LP - Joseph Grego Trust 22,150,000 10 0.73% Centermark Properties Inc. Dixiline Lumber Company G F Pinnacle Peak Limited Partnership Wells Fargo Bank Plaza Bonita LLC PASHA Group C 1 P Venture National City Capital WDOPSUB! LP Sweetwater Square LLC 1.F AARDEMA $ 107,750.197 1 6.60% 24,784 990 2 152% 21408 880 3 l31% 19-427,537 4 1.19% 15.032.891 5 0.92% 14 485,933 6 0 89% 13.857,673 7 085% 12.238.459 8 0 75% 12.009.686 9 0.74% 11,108,321 10 068% Total $ 492.745,544 16 26% $ 252,104567 15 45% Source: HUT, San Diego County Assessor 2000/01- 2009/10 Combined Tax Rolls. 134 Current Year Tax Levy Current Tax Collections Percent of Levy Collected Delinquent Tax Receivable Delinquent Tax Collections Total Tax Collections Percent of Total Tax Collections To Tax Levy Outstanding Delinquent Taxes Percent of Delinquent Taxes To Tax Levy CITY OF NATIONAL CITY Property Tax Levies and Collections Last Eight Fiscal Years Fiscal Year 2003 2,083,370 2,073,381 99.52% 10,511.53 1,221.20 2004 2,163,020.93 2,153,774.45 99.57% 12,083.88 2,129.39 2,074,602 2,155,904 99.58% 99.67% 19,279.10 19,200.97 2005 2006 2,211,147.75 2,415,266.09 2,203,473.44 2,407,113.6.5 99.65% 99.66% 12,541.85 12,204.02 1,320.07 2,060.98 2.204,794 99.71% 18,896.09 2,409,175 99.75% 18,295.48 0.93% 0.89% 0.85% 0.76% 135 Fiscal Year 2007 2008 2009 2009 2010 2,678,831.84 2,670,617.78 99.69% 13,617.59 1,502.01 2,855,586.70 2,843,810.13 99.59% 15,637.23 1,104.17 3,119,017.93 3,102,793.31 99.48% 16,471.53 2,886.11 3,1 19,017.93 3,102, 793.31 99.48% 16,471.53 2,886.11 3,133,983.84 3,104,248.21 99.05% 16,862.66 1,863.54 2.672,120 2,844,914 3,105,679 3,105,679 3,106,112 99.75% 99.63% 99.57% 99.57% 99.11% 2(1,329.64 0.76% 26,309.63 29,810.04 0.92% 0.96% 136 29,810.04 44,734.75 0.96% 1.4 3% CITY OF NATIONAL CITY Ratios of Outstanding Debt by Type Last Eight Fiscal Years Fiscal Year 2003 2004 2005 Governmental Activities: NCJPFA Lease Revenue Refunding Bond $ 5,315,000 $ 5,060,000 $ 4,790,000 Fax Allocation Bonds 42,580,000 47,950,000 48,280,000 General Obligation Bonds 6,000,000 6,000,000 5,970,000 }IUD 108 Bond 2003 A - 6,900,000 6,730,000 Total Bonded Debt 53,895,000 65,910,000 65,770.000 Percent of Taxable Assessed Values 2.94% 3 38% 3.19% Capital Lease Payable Business -Type Activities: Notes Payable Per Capita $ 969 $ 1,207 $ 1,181 261,937 1,727.591 3,597,013 3,466,933 3,328,141 Total Primary Government $ 57,492,013 $ 69,638,870 S 70,825,732 Percent of Personal Income 4.91% 5.91 % 5.89% Per Capita $ 1,034 $ 1,276 S 1,271 137 Fiscal Year 2006 2007 2008 2009 2010 $ 4,510,000 45,885,000 5,850,000 6,560,000 62.805,000 2.67% $ 1.124 1,927,190 $ 4,220,000 43,885,000 5,720,000 6,380,000 60,205,000 2.23 "/0 $ 1,074 1,655,327 $ 3,920,000 $ 3,605,000 $ 3,280,000 41,820,000 39,680,000 37,455,000 5,585.000 5,440,000 5,285,000 6,185,000 5,975,000 5,750,000 57,510,000 54,700,000 51,770,000 1.97% 1.75% 1.71°/0 $ 1,021 $ 964 $ 896 1,372,940 1,117,728 856,554 3,180.054 3,022,049 2,853,463 2,481.662 2,853,463 $ 67,912,244 $ 64,882,376 $ 61,736,403 $ 58,299,390 $ 55,480,017 5.39% 5.03% 4.82% 4.80% n/a 1,157 $ 1,096 $ 1,028 $ 960 138 (This page intentionally left blank) 139 2008-09. Assessed Valuation' Rederelopment Incremental Valuation Adjusted Assessed Valuation: CITY OF NATIONAL CITY Direct and Overlapping Debi As of Jane 30, 2010 $3.033506,532 1381.128,41 1 $1,652,378,121 Total Debt Citv's Share of DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT. 6/30/2010 %Applicable' Debt 6/30/10 Metropolitan Water District $264,220,000 0091% $240,440 San Diego Community College District 623.390.828 0.003% 18.702 Southwestern Community College District 181,958,656 4.279% 7.786.011 Chula Vista City School District 78 430,000 1646% 1,290,958 Sweetwater Union High School District 343,709,415 5.133% 17,642,604 Sweetwater 1lnion High School Dish ict Community Facilities Districts 30.470,907 0.216 - 4 040 416.072 City of National City 5,235,000 100% 5,285,000 TOTAL. DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $1327 464,806 $32,679.787 DIRECT AND OVERLAPPING GENERAL. FUND DEBT: San Diego County General Fund Obligations San Diego County Pension Obligations San Diego County Superintendent of Schools Obligations Southwestern Community College District General Fund Obligations Sweetwater Union Iligh School District Certificates of Participation Chula Vista City School District Certificates of Participation City of National City Certificates of Participation TOTAL_ DIRECT AND OVERLAPPING GENERAL. FUND DEBT COMBINED TOTAL DEBT $415,210;000 853,514_739 21.187,500 1.625,000 10,480,000 143025 000 3,280,000 0.475% 0 475% 0475% 4.279% 5.133% 1.646% 100% $1,972,390 4,054,195 100.641 69.534 537,938 2,354,192 3,280,000 81.448 352,239 812,368,890 $2.975,817,045 $45,043,677 ' Percentage of overlapping agency's assessed valuation located within boundaries of the city ' Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non -handed capital lease obligations. Ratios to 2009-10 Assessed Valuation: Direct Debi ($5.285,000) 0.17% Total Direct and Overlapping Tax and Assessment Debt 1.08% Ratios to Ad lusted Assessed Valuation. Combined Direct Debi ($8,565,000) Combined Total Debt STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/10: AB.($450) Source: Cali rornia Municipal Statistics, Inc 0 52% 2.73% 1.10 $0 CITY OF NATIONAL CITY legal Debt Margin Information, Last Eight Fiscal Years Fiscal Year 2003 2004 2005 Assessed Valuation $ 1,836,172,913 $ 1,948,164.113 $ 2,063,075,166 Conversion Percentage 25% 25% 25% Adjusted Assessed Valuation 459,043,228 487,041,028 515,768,792 Debt Lirnit Percentage 15% 15% 15% Debt Limit 68,856,484 73,056,154 77,365,319 Total Debt (due more than one year) $ 59.221,743 $ 73,917,274 $ 72,916,217 Less: Non Bonded Debt Claims Payable - (2,747,983) (4,670.000) Compensated Absences (2,604,810) (2,707,375) (2,107,129) Capitalized Lease Obligation - (208,775) (154,034) Notes Payable (3,466,933) (3,328,141) (3,180,054) Total Applicable to Limitation 53,150,000 64,925,000 62.805,000 Legal Debt Margin 15,706,484 8,131,154 14,560,319 Total debt applicable to the limit as a percentage of debt limit 77% 89% 81% 141 Fiscal Year 2006 2007 2008 2009 2010 $ 2,355,008,346 $ 2,703,24.3,809 S. 2,923,482,096 $ 3,127,120,736 $ 3,030,591,425 25% 25% 25% 25% 25% 588,752,087 675,810,952 730,870,524 781,780,184 757,647,856 15% 15% ]5% 15% 15% 88,312, 813 101,371,643 109,630,579 117,267,028 113,647,178 $ 68,984,074 $ 65,688,525 $ 62,378,019 $ 59,224,556 $ 59.224,556 (1.705.127) (2,890,000) (2.578,000) (2,759,900) (4_286,256) (2,396,563) (1,062,113) (1,326.678) (1,356,431) (1,053,748) (1,655,335) (1,372,949) (1,099.735) (856,565) (682,943) (3,022.049) (2,853,463) (2,673,606) (2,481,662) (2,276,886) 60,205,000 57,510,000 54,700,000 51.769,998 50,924.723 28,107,813 43,861,643 54,930,579 65,497.030 62.722,455 68% 57°0 50% 44% 45% 142 CITY OF NATIONAL CITY Pledged Revenue Coverage Last Eight Fiscal Years 2003 2004 2005 Revenue Property Tax Gross Incremental Revenue $ 7,739,209 $ 6,833,182 $ 7,682,979 Debt Service Requirements Principal 470,000 745,000 815,000 Interest and fiscal charges 712,829 1,916,639 3,758,688 Pass - through payments 1,118, 535 1,174,999 1,244,621 $ 2,301,364 $ 3,836,638 $ 5,818,309 Debt Coverage 3.36 Source : City of National City Comprehensive Financial Annual Reports 143 1.78 1.32 Fiscal Year 2006 2007 2008 2009 2010 $ 9,847,226 $ 10.834.596 $ 11.766,428 $ 11.790,224 $ 11,184,289 2,795,000 2,614,817 1.367,750 2,000.000 2,033,220 1,452,351 2.065,000 2,017,843 1,525,468 2,140,000 1,883,148 1,553,258 2,225,000 1,806, 370 7,395,921 $ 6,777.567 $ 5,485,571 $ 5,608,311 $ 5,576,406 $ 11,427,291 1.45 1.98 2.10 144 2.11 0.98 CITY OF NATIONAL CITY Demographic and Economic Statistics Last Ten Fiscal Years Educational Attainment Pct. of S.D. from Avg. % I ligh % Bachelor's Per Capita Total County Previous Median household School Degree or Pct, Below Unemployment Personal Personal Year Population Population Year Age Size Graduate Nigher Poverty Rate Income (000s)* Income* 2001 54.463 l.9% 0.5% 28,6 3.49 n/a n/a 8.4% $1,I72,000 S21,520 2002 54,743 1.9% 0.5 28.4 3.51 n/a n/a nia 10.3% S1,165,400 S21.290 2003 55,608 1.9% 1.6% 28.6 3.53 n/a nia n/a 10.4% S 1,170,000 S21,040 2004 54,592 1,8% -1.8% 28.6 3.53 n/a n/a n/a 9.5% S1,178,300 $21,580 2005 55,710 1,8% 2.0°0 28.4 3.52 n/a n/a n/a 8.7% $1,201,700 S21,570 2006 55,863 1.8% 0.3% 28.7 3.49 n/a n/a n/a 8.0% S1,258,800 S22,530 2007 56,063 1.89/ 0.4% 28.9 3.58 62% 9% 23.9% 9.1% $1,290,100 $23,010 2008 56,320 I.8% 0.5°, 29.0 3.59 66% 13°40 23,0% 11.8% $1,279,800 $22,720 2009 56,730 1.8% 0.7% 29.1 3.66 n/a n/a n/a 18.5% $1,214,000 $21,400 2010 57,799 1.8% 1.9% 29.7 3.81 n/a n/a n/a n/a n/a n/a Sources: SANDAG. Current Estimates (Aug. 2010): California Department of Finance: California Employment Development Department: I.LS. Census Bureau, Census 2000 and American Community Survey: U.S. Bureau of Economic Analysis Notes: *Dollar s'alues are inflation -adjusted to 2009 145 City of National City Full-time Equivalent City Government Employees by Function/Program, Last Eight Fiscal Years Fiscal Year 20031 2004' 2005' 2006 2007 2008 2009 2010P function/Program General Government City Clerk 2.03 2.03 303 3 03 3.16 3.16 3.16 3.16 City Manager 5.00 5.00 7 50 7.00 7.50 7 50 7 50 7.50 Risk Management 1.00 1 00 1.00 I.00 1.00 2.00 2.00 2.00 Management Information Systems 3.00 3.00 3.00 6 00 4.00 4.00 4.00 4.00 Finance 1 25 15 25 16. 75 13.75 17.00 17.00 17.00 17.00 Purchasing 2.48 2.48 2.48 2.48 2.48 3.48 3.48 2.48 City Attorney 300 3 00 3 00 3.00 3.50 3.50 3.50 3.50 Homan Resources 3.00 4 25 4.50 5.50 6.25 4 80 4.80 9.30 Community Development" 17.25 17 75 I 00 25 75 - Planning 8.07 8.07 9.00 6.50 6.50 750 7.70 9.10 Building 8.50 8.15 13 63 15 00 a 00 400 4.00 4.40 En5ineer0n9 11.95 12.50 14.95 14.95 14.70 14.70 Redevelopment* - -- 4.00 4.00 7.00 5.20 Advanced Planning/Economic Development -- - 1.00 5.50 2.40 2.75 !lousing & Grants" -- 11.00 11.00 11.58 17.65 Neighborhood Services* -- - 11.00 12.00 11.00 6.00 Public Works 48.43 47.45 51.27 51.77 51 25 51.00 50.00 51.00 Community Services 32.94 32.84 19.84 23.08 23.00 23.00 23.00 22.50 Nutrition Center 15 00 15 00 12.25 11.25 Library 20.81 19.56 19.56 21.41 25.91 25.91 31.18 28.51 Public Safetey Police 126 86 128.34 128.84 134.84 134.36 139.36 139.36 139.36 Fire 4725 48.25 48. 25 48.25 4825 48.25 48.25 48.25 Transit' 45. 00 43.00 43. 00 43.00 Pubhe Works & Engureenng were considered one Department during FY 2003 and 2004 'Parks Division is no longer included ender Comnmuity Se;vices Department 1t became a division of Public Works dunnn FY 200� ' National City Transit is no longer managed by the City and is now operated b) Metropolitan Transit Ss stem (MIS). " Prior to FY 2007 Redevelopment, Advanced PlanninatFeonam:c Developmem_ Housing & Grans and Netghburbuod Set. ices were budgeted through the Community Deselopment Comtnision_ *The information listed shove includes frozen positions that are currently s aeon and unfunded '!he Ciry of National City had 27. 50 FTE frozen for FY 2010 Sources: Based on annual City Budgeted personnel SIA: Not available 146 Employer CITY OF NATIONAL CITY' Principal Employers, Current Year and Ten Years Ago 2010 2000 Percentage Percentage of Total City of total City Employees Rank Employment Employees Rank Employment National School District 462 1 2.35% N/A 2 N/A Sweetwater Union High School District 400 2 2.04% N/A 4 N/A Walmart 400 3 2.04% N/A N/A NMS Management 300 4 1.53% Dixiline Pro Build 285 5 1.45% National City 275 6 1.40% N/A 6 NIA Ball Automotive Group 250 7 1.27% — 7 Macy's 250 8 1.27% N/A N/A Motivational Systems Inc 245 9 1.25% Mossy Nissan National City 200 10 1.02% 5 Paradise Valley Hospital -- NIA 1 N/A General Motors Acceptance Corp — N/A 3 N/A National City Ford NIA 8 N/A McCune Chrysler Plymouth N/A 9 N/A Ron Baker Chevrolet lsuzu — N/A 10 N/A Sources: National City Finance Department, Dun & Bradstreet, Selectory com 147 City of National City Operating Indicators by Function/Program, Last Eight Fiscal Years Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 Function/Propram Police Physical arrests N/A N/A N/A N/A 3.000 3,100 3,834 3,456 Parking violations N/A N/A N/A N/A 5,341 5,003 4,956 9,843 Traffic violations N/A N/A N/A N/A 1,941 2,450 3,154 3,491 Fire Emergency responses 4,868 5.667 5.532 5,342 5,402 5,497 5,394 5,165 Fires extinguished 173 227 178 184 170 158 118 140 Inspections N/A N/A 1,779 1,638 2,099 N/A N/A N/A Other public works Street resurfacing (miles) N/A N/A N/A N/A N/A N/A 17 25 Parks and recreation Athletic held permits Issued b N/A NIA N/A N/A 24 24 24 17 Community' center admissions N/A N/A NIA N/A 49,767 49,803 49,825 65,609 Library Volumes in collection 172,258 180,925 144,952 170,915 185,722 194,383 200,516 207,100 Total volumes borrowed 216,166 292,766 272,840 214,837 273,646 312.591 316,075 285,527 Wastewater Average daily sewage treatment (million gallons per day) N/A N/A N/A N/A 5.211 5.211 5.211 4.482 Sources: Various City Departments. N/A: Not available. 148 City of National City Capital Assel Statistics by Function/Program, Last Eight Calender Years Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 Function/Program Police Stations 1 1 1 1 1 I 1 1 Zone offices 0 0 0 0 0 1 1 1 Patrol units N/A N/A N/A N/A N/A 38 38 38 fire stations 2 2 2 2 2 2 2 2 Other public works Streets(miles) N/A 101 101 101 101 101 101 101 Highways (miles) a 6 6 6 6 6 6 6 6 Streetlights N/A N/A N/A N/A 1673 1.723 1725 1,730 Traffic signals 89 89 89 89 89 89 89 88 Parks and recreation Acreage 84 84 84 84 84 84 84 84 Playgrounds 1 4 4 4 4 4 4 4 Baseball/softball diamonds It 7 7 7 7 7 7 7 7 Soccer/football fields h 3 33 3 _ 3 3 3 3 Community centers 5 5 5 5 5 5 5 5 Wastewater Sanitary sewers (miles) N/A 100 100 100 100 100 100 97 Storm sewers (miles) N/A 25 3 25 3 25 3 25 1 25 3 253 25.3 Treatment capacity (million gallons per day) 5.04 5.CI 5.02 5 02 4.83 4.57 4.48 7.10 Sources: Various Cin Departments. W.-A: Nol available_ 149 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: OEM TITLE: City of National City's Single Audit Report on Federal Awards for the Fiscal Year Ended June 30, 2010 January 25, 2011 AGENDA ITEM NO. 114 PREPARED BY: Jeanette Ladrido, CPA DEPARTMENT: PHONE: 336-4331 APPROVED BY: EXPLANATION: Transmitted herewith is the City of National City's Single Audit Report on Federal Awards for the fiscal year ended June 30, 2010 prepared by our external auditors, Mayer Hoffman McCann, P.C. The reports include all agencies under the control of the City Council including the Community Development Commission. The auditors have conducted their examination of the financial statements in accordance with generally accepted auditing standards and expressed a clean opinion of those statements. The Single Audit was completed on December 23, 2010 and posted on the City's website January 2011. Copies y also be viewed in the City Clerk's office or the National City Public Library. �a FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Accept and file. BOARD / COMMISSION RECOMMENDATION: *TTACHMENTS: gle Audit Report on Federal Awards for the Fiscal Year Ended June 30, 2010 CITY OF NATIONAL CITY NATIONAL CITY, CALIFORNIA Single Audit Report on Expenditures of Federal Awards Year ended June 30, 2010 CITY OF NATIONAL CITY Single Audit Report on Expenditures of Federal Awards Year ended June 30, 2010 TABLE OF CONTENTS Page Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 Report on Compliance with Requirements that could have a Direct and Material Effect on each Major Program, Internal Control over Compliance and on the Schedule of Expenditures of Federal Awards in Accordance with OMB Circular A-133 3 Schedule of Expenditures of Federal Awards 5 Notes to the Schedule of Expenditures of Federal Awards 6 Supplementary Information: U.S. Department of IIousing and Urban Development: Financial Data Schedule (CAI 16) 7 Schedule of Findings and Questioned Costs 12 Summary Schedule of Prior Audit Findings 17 Mayer Hoffman McCann P.C. An Independent CPA Firm 2301 Dupont Drive, Suite 200 Irvine, California 92612 949-474-2020 ph 949-263-5520 fx www.mhm-pc.com Honorable Members of the City Council City of National City, California REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS We have audited the financial statements of the City of National City, California (the City) as of and for the year ended June 30, 2010, and have issued our report thereon dated December 23, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of National City' financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider items 2010-01 through 2010-05 as described in the accompanying Schedule of Findings and Questioned costs to be significant deficiencies in internal control. Honorable Members of the City Council City of National City, California Page Two Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weakness. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. We noted certain matters we reported to the management of the City of National City in a separate letter dated December 23, 2010. The City's written responses to the significant deficiencies identified in our audit have not been subjected to the audit procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them. This report is intended solely for the information and use of the City's management and City Council and is not intended to be and should not be used by anyone other than these specified parties. /1-7 c let Irvine, California December 23, 2010 Mayer Hoffman McCann PC. An Independent CPA Firm 2301 Dupont Drive, Suite 200 Irvine. California 92612 949-474-2020 ph 949-263-5520 fx www.mhm-pc.com Honorable Members of the City Council City of National City, California REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM, INTERNAL CONTROL OVER COMPLIANCE AND ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS IN ACCORDANCE WITH OMB CIRCULAR A-133 Compliance We have audited the compliance of the City of National City, California (the City) with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2010. The City's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the City's management. Our responsibility is to express an opinion on the City's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City's compliance with those requirements. In our opinion, the City complied, in all material respects, with the requirements referred to above that could have a direct and material effect on its major federal programs for the year ended June 30, 2010. Internal Control Over Compliance The management of the City is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City's internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. 3 Honorable Members of the City Council City of National City, California Page Two A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is more than a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, the business -type activities, each major fund and the aggregate remaining fund information of the City of National City as of and for the year ended June 30, 2010, and have issued our report thereon dated December 23, 2010. Our audit was performed for the purpose of forming an o union on the basic financial statements taken as a whole. The accompanying Schedule of Expenditures of Federal Awards and the supplementary information (the Financial Data Schedule) are presented for purposes of additional analysis as required by OMB Circular A-133 and the U.S. Department of Housing and Urban Development and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole. This report is intended for the information of the City's management, federal awarding agencies and pass -through entities and is not intended to be and should not be used by anyone other than those specified parties. Irvine, California December 23, 2010 sn �C- 0°- C. 4 CITY OF NATIONAL CITY Schedule of Expenditures of Federal Awards Year ended June 30, 2010 Federal Grantor/ Pass -through Grantor/ Program Title U.S. Department of Health and Human Services Passed through the County of San Diego: Special Programs for the Aging, Title lll, Part C Aging Congregate Nutrition Services for States - ARRA Aging Home - Delivered Nutrition Services for States - ARRA Centers for Disease Control and Prevention Total U.S. Department of Health and Human Services U.S. Department of Housing and Urban Development Direct assistance: Community Development Block Grant - Entitlement Program Community Development Block Grant R - ARRA HOME Investment Partnerships Program Section 8 Housing Choice Vouchers Section 8 Housing Choice Vouchers - Morgan Towers** Supportive Housine for the Elderly - Morgan Towers healthy homes Demonstration Grants Total U.S. Department of Housing and Urban Development U.S. Department ofJusticc Direct assistance. Edward Byrne Justice Assistance Grant Program Edward Byrne Justice Assistance Grant Program Passed through the City of Chula Vista. Border Violence Project - ARRA Total U.S. Department of iustice U.S. Department of Transportation Direct assistance: Click It or Ticket - State and Community Highway Safety OTS DUI Enforcement - State and Community Highway Safety Sobriety Checkpoint Grant-OTS Sobriety Checkpoint Grant-OTS DU] Prosecution & Enforcement Grant Street Racing Grant AVOID DUI Grant Traffic Collision Sti_ stem-OTS Subtotal Passed through the California Department of Transportation: Highway Planning and Construction Total U.S. Department of Transportation Corporation for National and Community Service Passed through the California Service Corps: AmeriCorps 11.S. Department of I lomeland Security Direct assistance. Assistance to Firefighters Grant Program FY07 Assistance to Firefighters Grant Program FY08 Homeland Security Grant Program (equipment and training) FY08 ] lomeland Security Grant Program (equipment and training) FY09 llomeland Security Grant Program (equipment and training) FY 10 Total U.S. Department of ] lomeland Security U. S. Department of Environmental Protection .Agency Direct assistance: Brownfields Assessment and Cleanup Cooperative Agreements Total Federal Financial Assistance Expenditures Program Identification Number 388636 513857 513857 N/A B-08-MC-06-0560 B-09-MY-06-0560 M-06-MC-06-0522 CAI16V0 CA60006011 CA60006011 CALHH0I45-05 Federal Federal Domestic Financial Assistance Assistance Number Expel d_tures 93.045 S 274,622 * 93.707 16,337 * 93.705 9,309 * 93.283 8,046 308,314 14.218 14253 14.239 14.871 14 871 14.157 14 901 2008-DJBX-0360 16.738 2009-D1BX-0247 16.738 2009-SS-B-0051 16.809 CT09279 20.600 AL0817 20.600 SC09279 20.600 SCt0279 20.600 AL0948 20.600 PI--0901 20.600 AL0939 20.600 RS090I 20.600 STPL 5066 (0I 1) 20.205 03ACHY 12-C65 94.006 rr/a n/a n/a n/a n/a R09-07.a017 nia - Not Available * - Major Program ** - See Note 1(d) in the Notes to the Schedule of Federal Awards for HUD required information 97.044 97.044 97.067 97.067 97 067 66-818 The accompanying notes are an integral part of this schedule. 5 681,136 152,204 170,102 9.469,871 663,850 2,481,662 123,398 13,742,223 7,333 26,245 93,305 126,883 21,318 20,842 14009 26,428 13,612 10,209 7,177 37 107,632 500.596 * 608,228 264,550 608 280,070 1,894 53,216 8,830 344,618 75,683 S 15,470,499 Amount Provided to Subrectpients 218 991 218,991 218,991 (I) CITY OF NATIONAL CITY Notes to the Schedule of Expenditures of Federal Awards Year ended June 30,2010 Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards (a) Scope of Presentation The accompanying schedule presents only the expenditures incurred (and related awards received) by the City of National City, California (the City) which are reimbursable under federal programs of federal financial assistance. For purposes of this schedule, federal awards include both federal financial assistance received directly from a federal agency, as well as federal funds received indirectly by the City from non-federal organizations. Only the portion of program expenditures reimbursable with such federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized and the portion of program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule. (b) Basis of Accounting The expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are recognized when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported include any property or equipment acquisitions incurred under the Federal program. (c) Subrecipients During the fiscal year ended June 30, 2010, the City disbursed $218,991 to subrecipients to be used for federally allowable expenditures in accordance with the grant agreements. (d) Supplementary Information Required by HUD— Financial Data Schedule The financial data schedule supplementary information required by the U.S. Department of Housing and Urban Development (IIUD) for the Morgan Towers Section 8 Housing Choice Voucher program is reported in a separate report entitled "Morgan Towers Financial Statements and Single Audit Report for the year ended June 30, 2010", dated September 17, 2010. These financial statements may be obtained from the Community Development Commission of the City of National City located at 1243 National City Boulevard, National City, CA 91950. 6 CITY OF NATIONAL CITY Financial Data Schedule Year ended June 30, 2010 Entity Wide Balance Sheet Summary PITA • CA116 FYED: 06/30/2010 Line Item No. Account Description 14.871 COCC Subtotal Elim Total 1 I 1 Cash - Unrestricted 112 Cash - Restricted - Modernization and Development 113 Cash - Other Restricted 114 Cush - Tenant Security Deposits 115 Cash - Restricted for Payment of Current Liabilities 100 Total Cash 121 Accounts Receivable - PHA Projects 122 Accounts Receivable - HUD Other Projects 124 Accounts Receivable - Other Government 125 Accounts Receivable - Miscellaneous 126 Accounts Receivable - Tenants 126.1 Allowance for Doubtful Accounts - Tenants 126.2 Allowance for Doubtful Accounts - Other 127 Notes, Loans, & Mortgage Receivable - Current 128 Fraud Recovery 128.1 Allowance for Doubtful Accounts - Fraud 129 Accrued Interest Receivable 120 Total Receivables, Net of Allowances for Doubtful Accounts 131 Investments - Unrestricted 132 Investments - Restricted 135 Investments - Restricted for Payment of Current Liability 142 Prepaid Expenses and Other Assets 143 Inventories 143.1 Allowance for Obsolete Inventories 144 Inter Program Due From 145 Assets held for Sale 150 "total Current Assets 16] Land 162 Buildings 163 Furniture, Equipment & Machinery - Dwellings 164 Furniture, Equipment & Machinery - Administration 165 Leasehold Imporvements 166 Accumulated Depreciation 167 Contruction in Progress 168 Infrastructure 160 Total Capital Assets, net of Accumulated Depreciation 171 Notes, Loans and Mortgages Receivable - Non -Current 172 Notes. Loans and Mortgages Receivable - Non -Current - Past Due 173 Grants Receivable - Non -Current 174 Other Assets 176 Investments in Joint Ventures 180 Total Non -Current Assets 108,684 425,613 534,297 8,738 608,258 65,559 (28,681) 653.874 1,188 171 190 Total Assets 1,188,171 7 108,684 425,613 108,684 425,613 534 297 534 297 8,738 608,258 65,559 (28,681) 653 874 8,738 608,258 65,559 (28,681) 653 874 1,188,171 1188,171 - 1,188,171 (Continued) CITY OF NATIONAL CITY Financial Data Schedule Year ended lune 30, 2010 Entity Wide Balance Sheet Summary PHA: CA116 FYED: 06/30/2010 Line Item No. Account Description 14.871 COCC Subtotal Elim Total 311 Bank Overdraft 312 Accounts Payable <= 90 Days 313 Accounts Payable > 90 Days Past Due 321 Accrued Wage/Payroll Taxes Payahle 322 Accrued Compensated Abseneces - Current Portion 324 Accrued Contingency Liability 352 Accrued Interest Payable 331 Accounts Payable - HUD PHA Programs 332 Accounts Payable - PHA Projects 333 Accounts Payable - Other Government 341 Tenant Security Deposits 342 Deferred Revenues 343 Current Portion of Long-term Debt - Capital Projects/Mortgage Revenue Bonds 344 Current Portion of Long-term Debt - Operating Borrowings 345 Other Current Liabilities 346 Accrued Liabilities - Other 347 Inter Program - Due To 348 Loan Liability - Current 310 Total Current Liabilities 44,315 21,615 65,930 44,315 44,315 21,615 - 21,615 65,930 - 65,930 351 Long-term Debt, Net of Current - Capital Projects/Mortgage Revenue - - - 352 Long-term Debt, Net of Current - Operating Borrowings - - 353 Non-cun-enl Liabilities - Other 41,720 - 41,720 - 41,720 354 Accrued Compensated Absences - Non Current - - 355 Loan Liability - Non Current - - 356 FASB 5 Liabilities - - 357 Accrued Pension and OPEB Liabilities - 350 Total Non -Current Liabilities 41,720 - 41,720 41,720 300 Total Liabilities 107,650 - 107,650 - 107,650 508.1 Invested in Capital Assets, Net of Related Debt - - - 509.2 Fund Balance Reserved 1,080,521 - 1,080,521 - 1,080,521 511.2 Unreserved, Designated Fund Balance - - 5111 Restricted Net Assets - - - - 512.1 Unrestricted Net Assets - - - - - 512.2 Unreserved, Undesignated Fund Balance- 513 Total Equity/ Net Assets 1,080,521 - 1,080,521 - 1,080,521 600 Total Liabilities and Equity/Net Assets 1,188.171 1,188,171 1,188,171 8 (Continued) CITY OF NATIONAL CITY Financial Data Schedule Year ended June 30, 2010 Entity Wide Revenue and Expense Summary PHA: CA116 EYED: 06/30/2010 Line Item No. Account Description 14.871 COCC Subtotal Elim Total 70300 Net Tenant Rental Revenue 70400 Tenant Revenue - Other 70500 Total Tenant Revenue 70600 IIUD PIIA Operating Grants 70610 Capital Grants 70710 Management Fee 70720 Asset Management Fee 70730 Book Keeping Fee 70740 Front Line Serviec Fee 70750 Other Fees 70700 Total Fee Revenue 70800 Other Government Grants 71100 Investment Income - Unrestricted 71200 Mortgage Interest Income 71300 Proceeds from Disposition of Assets Held for Sale 71310 Cost of Sale of Assets 9,469,871 9,469,871 9,469,871 - 9,469,871 9,469,871 - 9,469,871 71400 Fraud Recovery 110,283 - 110,283 - 110,283 71500 Other Revenue 124,361 124,361 - 124,361 71600 Gain or Loss on Sale of Capital Assets - - - 72000 Investment Income - Restricted 70000 Total Revenue 9,704,515 9,704,515 - 9,704,515 91100 Administrative Salaries 614,580 - 614,580 614,580 91200 Auditing Fees 6,000 - 6,000 - 6,000 91300 Management Fee 91310 Book-keeping Fee 91400 Advertising and Marketing 91500 Employee Benefit Contributions - Administrative 91600 Office Expenses 91700 Legal Expense 91800 Travel 91810 Allocated Overhead 91900 Other 91000 Total Operating - Administrative 92000 Asset Management Fee 92100 Tenant Serviecs - Salaries 92200 Relocation Costs 92300 Employee Benefits Contributions - Tenant Services 92400 Tenant Services - Other 92500 Total Tenant Services 93100 Water 93200 Electricity 93300 Gas 93400 Fuel 93500 Labor 93600 Sewer 93700 Employee Benefit Contributions - Utilities 93800 Other Utilities Expense 93000 Total Utilities 9 247,300 - 247,3- 00 247,300 112,810 - 112,810 - 112,810 847 - 8- 47 - 8- 47 981,537 981,537 - 981,537 (Continued) CITY OF NATIONAL CITY Financial Data Schedule Year ended June 30, 2010 EntityWide Revenue and Expense Summary PHA: CAI16 EYED: 06/30/2010 Line Item No. Account Description 14.871 COCC Subtotal Elim Total 94100 Ordinary Maintenance and Operations - Labor 94200 Ordinary Maintenance and Operations - Materials and Other 94300 Ordinary Maintenance and Operations Contracts 94500 Employee Benefit Contributions - Ordinary Maintenance 94000 Total Maintenance 95100 Protective Services - Labor 95200 Protective Services - Other Contract Costs 95300 Protective Services - Other 95500 Employee Benefit Contribution - Protective Services 95000 Total Protective Services 96110 Property Insurance 96120 Liability Insureance 96130 Workmen's Compensation 96140 All Other lnsurance 96100 Total lnsurance Premiums 96200 Other General Expenses 96210 Comensated Absences 96300 Payments in Lieu of Taxes 96400 Bad Debt - Tenant Rents 96500 Bad Debt - Mortgages 96600 Bad Debt - Other 96800 Severance Expense 96000 Total Other General Expenses 96710 Interest of Mortgage (or Bonds) Payable 96720 Interest on Notes Payable (Short and Long Term) 96730 Amortization of Bond Issue Costs 96700 Total Interest Expense and Amortization Cost 7,693 - 7,693 - 7,693 28,681 36,374 96900 Total Operating Expenses 1,017,911 97000 Excess of Operating Revenue over Operating Expenses 8,686,604 97100 Extraordinary Maintenance - 97200 Casualty Losses - Non -capitalized 97300 Housing Assistance Payments 8,283,250 97350 HAP Portability-ln 115,498 97400 Depreciation Expense 97500 Fraud Losses 97600 Capital Outlays - Governmental Funds - 97700 Debt Principal Payment - Government Funds - 97800 Dwelling Units Rent Expense 90000 Total Expenses 9,416,659 10 28,681 - 28,681 36,374 36,374 1,017,911 - 1,017,911 8,686,604 8,686,604 8,283,250 8,283,250 115,498 115,498 - 9,416,659 - 9,416,659 (Continued) CITY OF NATIONAL CITY Financial Data Schedule Year ended June 30, 2010 Entity Wide Revenue and Expense Summary PHA: CAI16 EYED: 06/30/2010 Line Item No. Account Description 14.871 COCC Subtotal Elim Total 10010 Operating Transfer In 10020 Operating Transfer Out 10030 Operating Transfer (loin/to Primary Government I0040 Operating Transfer from/to Component Unit 10050 Proceeds from Notes, Loans and Bonds 10060 Proceeds from Property Sales 10070 Extraordinary Items, net Gain/Loss 10080 Special Items (Net Gain/Loss) 10091 Inter Project Excess Cash Transfer In 10092 Inter Project Excess Cash Transfer Out 10093 Transfers between Program and Project - In 608,152 608,152 608,152 10094 Transfers between Program and Project - Out - - - - - 10100 Total Other Financing Sources (Uses) 608,152 - 608,152 - 608,152 1000f1 Excess (Deficiency) of Total Revenue Over (Under) Total Expenses 896,008 - 896,008 - 896,008 11020 Required Annual Debt Principal Payments - 11030 Beginning Equity 184,513 - 184,513 - 184513 11040 Prior Period Adjustment, Equity Transfers and Correction of Errors - - - 11050 Changes in Compensated Absence Balance - - - - 11060 Changes in Contingent Liability Balance - - - 11070 Changes in Unrecognized Pension Transition Liability 108,684 - 108,684 108,684 11080 Changes in Special Term/Severance Benefits Liability 971,837 - 971,837 971,837 11090 Changes in Allowance for Doubtful Accounts - Dwelling Rents 12,528 - 12,528 - 12,528 11100 Changes in Allowance for Doubtful Accounts - Other 28,681 - 28,681 - 28,681 11170 Adrninstrative Fee Equity 108,684 - 108,684 108,684 11180 Housing Assistance Payments Equity 971,837 971,837 971,837 11190 Unit Months Available 12,528 - 12,528 - 12,528 11210 Number of Unit Monts Leased 12,449 - 12,449 - 12,449 11270 Excess Cash - - - 11610 Land Purchases - - - 11620 Building Purchases - - - 11630 Furniture & Equipment - Dwelling Purchases - - - - 11640 Furniture & Equipment - Administrative Purchases - - - - - 11650 Leasehold Improvements Purchases - - - - 11660 Infrastructure Purchases - - - - 13510 CFFP Debt Service Payments - - - - - 13901 Replacement Housing Factor Funds - - - - 11 CITY OF NATIONAL CITY Schedule of Findings and Questioned Costs Year ended June 30, 2010 (A) Summary of Auditors' Results 1. An unqualified report was issued by the auditors on the financial statements of the auditee. 2. The audit disclosed 5 significant deficiencies, of which none were considered to be material weaknesses for the period under audit. 3. The audit disclosed no instances of noncompliance that were material to the financial statements of the auditee. 4. There were no material weaknesses in internal control over the major programs of the auditee. 5. An unqualified report was issued by the auditors on compliance for major programs. 6. The results of our auditing procedures disclosed no findings required to be reported under paragraph .510(a) of OMB Circular A-133. 7. The major programs of the auditee were as follows: • U.S. Department of Housing and Urban Development Choice Vouchers Program - CFDA #14.871 • U.S. Department of Housing and Urban Development - the Elderly - CFDA # 14.157 • U.S. Department of Housing and Urban Development (Cluster) - Community Development Block Grant - CFDA # 14.218 and Community Development Block Grant R (ARRA) - CFDA # 14.253 • U.S. Department of Health and Iluman Services (Cluster) - Special Programs for the Aging, Title 111, Part C - CFDA # 93.045, Aging Home - Delivered nutrition Services for States, ARRA - CFDA It 93.705, and Aging Congregate Nutrition Services for States - ARRA - CFDA # 93.707 • U.S. Department of Transportation - Highway Planning and Construction -- CFDA # 20.205 - Section 8 Housing Supportive Housing for 8. The dollar threshold used to distinguish Type A and Type B programs was $464,115. 9. The auditee did not qualify as a low risk auditec, as defined by OMB Circular A-133, paragraph .530, for the year ended June 30, 2010 for the purpose of determining major programs. 12 CITY OF NATIONAL CITY Schedule of Findings and Questioned Costs (Continued) (B) Findings Related to the Financial Statements which are Required to be Reported in Accordance with GAGAS (2010-01) Reporting of Notes Receivable During the audit, Finance Department staff identified 6 different loans, which in the aggregate totaled approximately $9.5 million dollars, which were issued by the Community Development Commission (CDC) in previous years dating back to 1995. These agreements were entered into for appropriate Commission activities; however, these transactions were not reported in the accounting system as receivables of the CDC. These unreported transactions resulted in restatement of fund balance and net assets in the City and CDC's financial statements. The proper recording of receivables allow the City and CDC to monitor these funds and projects to insure that funds will be repaid in accordance with the terms of the agreement. Recommendation We recommend that Community Development Commission and City Finance Department staff develop policies and procedures for communicating, documenting, and recording of significant loan transactions to insure that activities of the Commission are properly reflected in the accounting records. These policies and procedures should also include enhanced monitoring controls over the loans issued to ensure repayment is appropriately recorded and that the monies are being used in accordance with the agreements terms and conditions. Managements Corrective Action PIanned or Taken We concur with the recommendation and Finance staff will develop policies and procedures on recording Notes Receivables. It should be noted that the six different loans totaling $9.5 million were entered into as early as 1995 and pre -dates existing management. (2010-02) Internal Service Fund Charges During our audit, we noted that the method for determining and allocating internal service fund charges to other departments and funds of the City had not been appropriately updated. During the 2010 fiscal year, the revenues received by the City's internal service funds were unchanged from 2009. Proper charges from internal service plans should be determined during the budgeting process and should reflect the actual cost incurred to provide the services rendered by the internal service fund. This process should be updated, reviewed, and approved on an annual basis. 13 CITY OF NATIONAL CITY Schedule of Findings and Questioned Costs (Continued) CBE Findings Related to the Financial Statements which are Required to be Reported in Accordance with GAGAS, (Continued) (2010-02) Internal Service Fund Charges, (Continued) Recommendation We recommend that the City perform a reconciliation of estimated expenses versus actual expenses, and to make the appropriate journal entries so that internal services funds are fully reimbursed for actual costs incurred or to insure user departments are not over charged should actual expenses be Iess than budget. Managements Corrective Action Planned or Taken We concur with the recommendation. Management is in the process of contracting services to perform a full review of the internal fund charge formula. With the merger of the Community Development Commission's operations with the City of National City as well as the other City organizational changes, the internal charge methodology requires a more detailed review to ensure all departments are being charged appropriately. Once the methodology has been approved, the finance staff will reconcile estimated expenses vs actual expenses and adjust the charges accordingly. The internal services charges will be updated on an annual basis. (2010-03) Interfund Transactions The proper use of short term interfund transactions (due to/from other funds) are used to eliminate deficits of cash in particular funds or to report short terms loans between funds that arc due and payable within 12 months. Long-term loans between funds of the City are generally due within more than one year (advances to/from other funds), and they may accrue interest to the lending fund and should be approved by City Council. During the June 30, 2010 audit, we noted that the interfund accounts are not being used by the City in the aforementioned situations. This has resulted in numerous funds of the City having both receivables and payables to other funds, and in many cases, the funds that are receiving these loans have adequate cash balances to support thier operations. Recommendation We recommend the interfund accounts that are a result long term borrowing need to be formally approved by Council and document these interfund loans as long-term advances between the borrowing funds and funds from which an advance was made. We also recommend that the City implement and document monitoring controls to insure that interfund borrowing does not affect restricted funds and to implement procedures to insure that the interfund accounts are not used to record routine or monthly transactions. 14 CITY OF NATIONAL CITY Schedule of Findings and Questioned Costs (Continued) (B) Findings Related to the Financial Statements which are Required to be Reported in Accordance with GAGAS, (Continued) (2010-03) Interfund Transactions, (Continued) Managements Corrective Action Planned or Taken We concur with the recommendation. The financial accounting system has been programmed to record entries as short term interfund transactions (due to/due from). The Finance Director will work closely with the city's accounting software programmers to correct the system generated entry and use the short term interfund transactions only as needed. (2010-04) Adjustments Detected During the Audit Process The Auditing Standards requires that the auditor include in the report of significant deficiencies any material adjustments detected by the audit process. For the year in June 30, 2010, material adjustments detected by the audit process were as follows. • Accrual payroll adjusted by $187,202 to reflect additional liabilities associated with payroll incurred as of June 30, 2010. • Increased capital assets, cash with fiscal agent and recorded long-term capital lease in the amount of $507,000, $1,248,323, and $1,755,160, respectively, relating to a transaction entered into by the City, but not recorded in the City's general ledger. • Recorded interest receivable as of June 30, 2010 in certain restricted funds to properly reflect those funds income and pooled cash balances at year end. • Reduced interfund loans reported in restricted funds due to the fact that the borrowing funds had adequate pooled cash balances and to reduce the interfund loans in restricted funds of the City. Recommendation Paragraph 15 of the Statement on Auditing Standards No. 115 specifies that material adjustments identified through the audit process are an indication of weaknesses in an entity's internal control structure. Efforts should be made to enhance the City's year end closing procedures to include areas that resulted in audit adjustments in 2010. 15 CITY OF NATIONAL CITY Schedule of Findings and Questioned Costs (Continued) (B) Findings Related to the Financial Statements which are Required to be Reported in Accordance with GAGAS, (Continued) (2010-04) Adjustments Detected During the Audit Process, (Continued) Management's Responses Regarding Corrective Action Taken or Planned We concur with the recommendation. The finance staff will update the year end closing procedures to ensure that all material adjustments are detected and recorded. (2010-05) Consolidation of Funds in the Accounting System Currently, the City has over one hundred funds in their accounting system. Although some funds are required to be reported separately, the majority of the City funds may be combined into the same fund if they are similar in nature (i.e. certain grants). Different revenue and expenditure accounts may be used to segregate those funds that are combined into one in order to continue to account for them separately. Furthermore, during the fiscal year ended June 30, 2011, they City will have to implement Governmental Accounting Standards Board Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions, which will further require the City to potentially consolidate certain funds for financial reporting purposes; having such a significant number of funds to analyze will require considerable efforts from City and Finance Department staff. Recommendation We recommend that the City evaluate each fund of the City and determine if there is an appropriate need to have a separate fund for the identified activities. Funds that are determined to not meet those criteria should be closed and reported with the General Fund. Through this process, the City used consider the impacts of GASB 54 to ensure that the accounting records will be appropriate for these new reporting standards. Management's Responses Regarding Corrective Action Taken or Planned We concur with the recommendation. Finance staff have begun review of the funds in the accounting system and will recommend consolidation of funds to the City Manager. In addition, the city will consider contracting services for the implementation of GASB 54 to ensure compliance with the new reporting standard. (C) Findings and questioned costs for Federal Awards as defined in Paragraph .510(a) of OMB Circular A-133 There were no findings or questioned costs for Federal Awards as defined in Paragraph .510(a) of OMB Circular A-133. 16 CITY OF NATIONAL CITY Summary Schedule of Prior Audit Findings Year ended June 30, 2010 There were no audit findings for the year ended June 30, 2009 that required follow-up during the year ended June 30, 2010. 17 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 25, 2011 AGENDA ITEM NO. 15 EM TITLE: Request from American Cancer Society to use MLK South for their monthly "Relay for Life" planning meetings on the 2nd Tuesday of each month from Feb -Aug 2011, from 6pm-7:30pm. Applicant is requesting a fee waiver. PREPARED BY: Brenda E. Hodges JJ PHONE: X4290 EXPLANATION: Total fees for 7 monthly meetings would be: Use of MLK: $246.23 Bldg Use Fee: $50.00 Custodial: $231.00 Set Up/CleanUp: $154.00 Chairs: $131.25 Tables: $21.00 Total: $833.48 DEPARTMENT: APPROVED BY: This request is in compliance with Policy 803 governing the use of MLK FINANCIAL STATEMENT: ACCOUNT NO. n/a ENVIRONMENTAL REVIEW: n/a ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Authorize use of MLK as requested, with no waiver of fees BOARD / COMMISSION RECOMMENDATION: n/a ATTACHMENTS: Use Application (6 pages) . GALi1 ORNTA -, AT1 1T ?Ycon[6Aa'�ft} The City o f'A 1ational Cit� Fa cibittly4AvyApplieft 140 E. 12th Street, Ste. B National City, CA 91950 (619)336-4290 Fax (619) 336-4292 After hours dispatch: (619) 336-4411 TO ALL APPLICANTS: It is strongly recommended that an applicant requesting use of City Facility attend the City Council meeting when the item is scheduled for consideration in order to answer any questions from the City Council. Facility Requested: please circle Martin Luther King Jr. Building North Room < South Room Entire Facility Date(s) of Use: ULSp`s of Day(s) of Use: V 1°1‘);) Time of Use: From: 1/442Rn. AM/PM To: —1 •3O Pr'ix AINCLUDE SET-UP & CLEAN UP TIME _,re of Function/Activity: Belo Qo lac 11444 Is the event open to the public? ye S Name & Address of Organization/Group:Il,tvv\,�2.V.te-nl SccvtEl , GrAte Di Nit INC. Non- profit organizatio Anticipated Maximum Attendance: 7.2Zi• Z No Tax ID# 99-11703S Percentage of National City Residents 10D °% D Will Admission be charged? iJ O Amount $ Will this be a Fund Raising Event? /40 Equipment Requested: ZSi -ZS # of chairs 3 # of banquet tables Si Stage Podium/Microphone Use of Kitchen: Yes i( No Is the Use of Alcohol Requested? I.i 0 Will other paid services be used (I. e, commercial caterer, DJ, Band, etc)? Name: Etla\ , Ann Ras 1 toe Name: +NW-vIn5 wAer **PLEASE ATTACH SEATING DIAGRAM** Use of Gas for Range and Oven: Yes Phone: 419 -IQ8 L-7c11.3 • Phone: Yes )C No 2 How many times in the last twelve months have you requested to use a City Facility? It is expressly understood and agreed that the applicant assumes all risk for loss, damage, Liability, injury, cost or expense that may arise during or be caused in any way by such use or occupancy of the facilities of the City of National City and/or Community Services Department. The applicant further agrees that in considerations of being permitted the use of the facilities agreed to, they will save and hold harmless the said City of National City, its officers, agents, employees and volunteers from any loss, claims, and liability damages, and/or injuries to persons and property that in any way may be caused by applicant's use or occupancy. I, the undersigned, hereby certify to abide by the regulations goveming said facility and agree to abide by all City of National City ordinances and facility rules and policies, and be representative of the user organizations. Further, I agree to be personally responsible for any damage/loss sustained by the ground, building, furniture or equipment or unusual clean up occurring through the occupancy of said facilities. Application recognizes and understands that use of the City's facility may create a possessory interest subject to property taxation and that applicant may be subject to the payment of property taxes levied on such interest. Applicant further agrees to pay any and all property taxes, if any assessed during the use of the City's facility pursuant to sections 107 and 107.6 of the revenue and taxation code against applicant's possessory interest in the City's facility. I CERTIFY THAT I HAVE RECEIVED A COPY OF THE RULES AND REGULATIONS FOR THE FACILITY REQUESTED, AND IAGREE FOR MY ORGANIZATION/ GROUP TO CONFORM TO ALL OF ITS PROVISION. DATE COMPLETED:ED%/ PRINT NAME: �+ v/�ft V'/!{//fi�th SIGNATURE: t' '911;;66 y�� �/ s` (/• ADDRESS OF APPLICANT: `v`f3 W -/A� vt 4, Raid CITY, STATE, AND ZIP CODE: M( 5.L_) CA I'll/ 66i PHONE: DAY att3-6of2 FAX NUMBER: CONTACT PERSON ON THE DAY OF THE EVENT: HAVE YOUR COPY OF APPLICATION IN POSSESION DURING USE Please type or print clearly with a Ballpoint pen. Complete application must be submitted and payment submitted in advanced of the event. PHONE: ( ) CELL: ( ) Community Services Staff Only - Rental Amount Received: Receipt -Number: Deposit Amount: Deposit/ Key Returned: Check Key issued: YES NO 3 CITY OF NATIONAL CITY PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION AGREEMENT Person 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 include 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: isc.r.N G2;043 C is - 5oUtr7.{ er►-I F ptvtS, osJ Person in charge of activity: fN s JO Address: 210 e--14w.,r) © ame go, -t joe Telephone: ‘o\tt -1ag2 -7y23 E-Mail: ;-t,„ w,,,,,,i , t C ©—( City Facilities and/ or property requested: Se.,1Z e'F lM L 1L Ate. i31 D • Date(s) of use: 2.0 t Tu c'SDtic.-i c F t: mod-. tti1 a t h - HOLD HARMLESS AGREEMENT As a condition of the issuance of a temporary use permit to conduct its activities On public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and its officers, employees and agents from and against any and all claims, demands, costs, losses, liability or damages for any personal injury, death, or property damage, or both, or any litigation and other liability, including attorneys fees and the costs of litigation, arising out or related to the use of public property or the activity taken under the permit by the permit or its agents, employees or contractors. 12 2—!D Signature of applicant Date Certificate of Insurance Approved by Name and Title 4 Safety/ Security Please describe your procedures for crowd control and internal security: N A2e.tJ Qc. - a CrkS oG CrH�r2-tvrNC.i �o•+nrv�, �� is NtiGMwill L., Ma-4,6 A! �,e S l'• c-orz_b n►e1 t a fs eac sN Pc- 1,1-A,P=v4rJelt YES NO Have you hired any Professional Security organization to handle Security arrangements for this event? If YES, please list: Security Organization: Security Organization Address: Security Director (Name): Phone: Monitoring Alcohol Consumption Please describe your producers for monitoring alcohol consumption: t'c> Pc-kokc\\ QonSunn (To M- tt3� Organization must designate a person to ensure that alcohol is being served to persons 21 years of age or older. The designated alcohol server must also be 21 years of age or older. Name: Contact phone number the day of event: YES NO Have you hired any Professional Security organization to handle Security arrangements for this event? If YES, please list: Security Organization: Security Organization Address: Security Director (Name): Phone: 6 AC » CERTIFICATE OF LIABILITY INSURANCE DATE (MMIDDIVYYY) 12/9/2010 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Commercial Lines — (404) 923-3700 Wells Fargo Insurance Services USA, Inc. 3475 Piedmont Road NE, Suite 800 Atlanta, GA 30305-2886 INSURED American Cancer Society, Califomia Division, Inc. PO Box 2061 Oakland, CA 94604 CONTACT NAME: PHONE INC. No Esti. E-MAIL ADDRESS: PRODUCER CUSTOMER ID R: 139199 INSURER(S) AFFORDING COVERAGE INSURER A : Federal Insurance Company FAX INC No): NAIC N 20281 INSURER B : Pacific Indemnity Company 20346 INSURER C : INSURER D : INSURER E : INSURER F COVERAGES CERTIFICATE NUMBER: 2106146 REVISION NUMBER: See below THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL INSR SUBR WVD POLICY NUMBER POLICY EFF (MMIDD/YYYY) POLICY EXP (MMIDD/YYYY) LIMBS A GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY X OCCUR 35943463 09/01/10 09/01/11 EACH OCCURRENCE $ 1,000.000 X DAMAGE TO NTED PREMISES (Ea occurrence)300,000 CLAIMS -MADE MED EXP (Any one person) $ 2,500 GEN'L PERSONAL & ADV INJURY $ 1,000,000 GENERAL AGGREGATE $ 25,000,000 AGGREGATE LIMIT APPLIES PER: POLICY Li JERO LOC PRODUCTS - COMP/OP AGG $ 2,000,0n. X 1 $ A AUTOMOBILE X _ LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS 73563471 73563476-Puerto Rico 73563477-Hawaii 09/01/2010 09/01/2011 COMBINED SINGLE LIMIT (Ea accident) $ 1,000.06.. BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) $ X x $ UMBRELLA LIAB EXCESS LIAB OCCUR CLAIMS -MADE EACH OCCURRENCE $ AGGREGATE $ DEDUCTIBLE RETENTION $ $ $ B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS YIN NIA 71741355 9/1/2010 9/1/2011 X WC STATU- OTH- TORY LIMBS Er_t_ E.L. EACH ACCIDENT $ 1,000,000 N E.L. DISEASE - EA EMPLOYEE $ 1,000,000 below E.L. DISEASE - POLICY LIMIT $ 1,000,000 DESCRIPTION OF OPERATIONS I LOCATIONS 1 VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) City of National City, its officials, agents and employees are included as Additional Insured, but only with respect to liability arising from the negligence of American Cancer Society, California Division, Inc. during Relay Committee Meetings being held monthly from January, 2011 - August 2011 at Martin Luther King Jr. Community Center, 140 E. 12th Street, National City, CA 91950. CERTIFICATE HOLDER CANCELLATION City of National City 140 E. 12th Street National City, CA 91950 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ©1988-2009 ACORD CORPORATION. All rights reserved. ACORD 25 (2009109) The ACORD name and logo are registered marks of ACORD r-,! AC R CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DDIYYYY) 12/9/2010 'THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION I5 WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Commercial Lines — (404) 923-3700 INSURED Wells Fargo Insurance Services USA, Inc. 3475 Piedmont Road NE, Suite 800 Atlanta, GA 30305-2886 American Cancer Society, California Division, Inc. PO Box 2061 Oakland, CA 94604 CONTACT NAME: PHONE AJC. No. Ertl. E-MAIL ADDRESS: FAX INC. Not: PRODUCER CUSTOMER ID#: 139199 INSURER(S) AFFORDING COVERAGE INSURER A : Federal Insurance Company NAIC # 20281 INSURER B : Pacific Indemnity Company 20346 INSURER C INSURER D INSURER E : INSURER F : COVERAGES CERTIFICATE NUMBER: 2106155 REVISION NUMBER: See below THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL INSR SUBR VVVD POLICY NUMBER POLICY EFF (MM/DDIYYYY) POLICY EXP IMM/DD7YTYYI LIMITS A GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY OCCUR 35943463 09/01/10 09/01/11 EACH OCCURRENCE $ 1,000,000 X DAMAGE TO PREMISESS(RENTED occurren e) $ 300,000 CLAIMS -MADE I X MED EXP (Any one person) $ 2,500 PERSONAL SADV INJURY $ 1,000,000 GENERAL AGGREGATE $ 25,000,000 GENL AGGREGATE LIMIT POLICY h j7 APPLIES PER: PRODUCTS - COMP/OP AGG $ 2,000,000 X LOC $ AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS 73563471 73563476-Puerto Rico 73563477-Hawaii 09/01/2010 09/01/2011 COMBINED SINGLE LIMIT (Ea accident) $ 1,000,000 X BODILY INJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per accident) X X $ UMBRELLA LMAB EXCESS LIAB OCCUR CLAIMS -MADE EACH OCCURRENCE $ AGGREGATE $ DEDUCTIBLE RETENTION $ $ $ B WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS Y 7 N N / A 71741355 9/1/2010 9/1/2011ER X WC STATU- TORY LIMITS OT E.L. EACH ACCIDENT $ 1,000,000 N E.L. DISEASE - EA EMPLOYEE $ 1,000 000 below E.L. DISEASE - POLICY LIMIT $ 1,000,000 DESCRIPTION OF OPERATIONS 7 LOCATIONS/VEHICLES (Attach ACORD 101, Additional Remarks Schedule, B more space Is required) Certificate holder is included as Additional nsured, but only with respect to liability arising from the negligence of American Cancer Society, Califomia Division, Inc. during Relay For Life on June 10 - 12, 2011 at Mar Vista High School, 505 Elm Avenue, Imperial Beach, CA 91932. CERTIFICATE HOLDER CANCELLATION Sweetwater Union High School District 1130 Fifth Avenue hula Vista, CA 91911 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE © 1988-2009 ACORD CORPORATION. All rights reserved. ACORD 25 (2009/09) The ACORD name and logo are registered marks of ACORD City of National City, California COUNCIL AGENDA STATEMENT ',METING DATE January 25, 2011 AGENDA ITEM NO. 16 / ITEM TITLE TEMPORARY USE PERMIT —Pacifica Bayview LLC requesting an extension to continue) having their banner advertising "Condos from 125,000 (619) 336-0303"at the Bayview Tower building at 801 National City Boulevard from January 26 thru December 31, 2011 with no waiver of fees. PREPARED BY EXPLANATION Vianey Rolon, 336-4364 DEPARTMENT Neighborhood Services Division This is an extension request from Pacifica Bayview LLC to continue to display the new Bayview Tower Advertising Banner from January 26-December 31, 2011. The banner reads "Condos from 125,000 (619) 336-0303"measuring 8ft x 50ft in navy blue background and white lettering. The purpose of the banner is to draw prospective residential homebuyers through Pacifica's current sales program. 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 Please see Department notes for further information. BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below ) Resolution No. Application for a Temporary Use Permit and Development Services' documentation. A-200 (9/99) Type of Event: Public Concert Parade Motion Picture Fair _ Demonstration Grand Opening Festival Community Event Circus _ Block Party ✓Other 8A WL2 Fok Shi S Event Title: 13 f}- y v7 e- kJ /ENE& ,0Di N47(o&1kt cal LV,p Event Location: Event Date(s): From 1/ f2f1// to 12�3 f/2u/� Total Anticipated Attendance: / MonthVDay/Year ( Participants) ( Spectators) Actual Event Hours: {} CRIpm to 6 amte) Setup/assembly/construction Date: Start time: Please describe the scope of your setup/assembly work (specific details): Dismantle Date: !l; 3-0/2 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_ N N� Sponsoring Organization: Address: For Profit Not -for -Profit Chief Officer of Organization (Name) Applicant (Name): R. 1 fQ S E7vC7L) P 74 /i-eS HJCOC1 s7sCEE7, sv17L /00, S't71 Pfezro, C492170 pAciFf6 64Yv/, 1 ttG Daytime Phone: (6/9) )?69OOD Evening Phone: .y/S)..5;P?9.L Fax: (9) 296..909L7 K zo t /9,14 S V Contact Person "on site" day of the event: c-A)p74- /9,s:0 .39e a Pager/Cellular: NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS 1 Is your organization a "Tax Exempt, nonprofit" organization? _ YES `�NO Are admission, entry, vendor or participant fees required? , YES `NO If YES, please explain the purpose and provide amount(s): $ Estimated Gross Receipts including ticket, product and sponsorship sales from this event. $ Estimated Expenses for this event. $ 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. Crf 7/A/v' 7,QA.) OF- A- 6 try v' L©e-1-7(J a' 710P aF / YU/glA) 7©c-.JC-r<. f O/L..D/.W4 lS S/ "7 uk) 4 "7 R O f & 4-1 r O/JA-L C r7 Y Q L vD 7I-M 4-AiiV I'f 1--K DR P OfPLc.7'VE k sfDt.v7rn( _ 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? tf yes, please describe: v"Jl7.s WILE 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. i,-YES _ NO Does the event involve a fixed venue site? if YES, attach a detailed site map showing all streets impacted by the event. NO 77,4-verld i1 £7, EE7 /A.(oq-c7S _ 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. — YES *4O 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. AI/A • Food Concession and/or Food Preparation areas Please describe how food will be served at the event: /VA 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 31\ft'n1 ,Q 3 svo N en 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) Y Tables and Chairs ty Y Fencing, barriers and or barricades N! A • 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 it 4 > Vehicles and/or trailers lift • Other related event components not covered above J f -ft • 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: 3 Trash containers with lids: Describe your plan for clean-up and removal of waste and garbage during and after the event: Pick _Of Of L177t ©wi mob. NChq 3 Please describe your procedures for both Crowd Control and Internal Security: a N S (7c .-Chris + "ue,c LO Ltt- 6,13N7124L Var7DRS. QIV Al 7e-71- G/C /Lc g E /-2 PIotpsc7 Ow/or-1s pcie phi YES ,-41O 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: YESO 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. �titS7 It- 1I) Kr7.5' ,ItIRL 1/1-4 6317,4 011JS'/7£ IiVA-6-af Please describe your Accessibility Plan for access at your event by individuals with disabilities: 7f/ e'er -i c .4-Cc tSSiistS //J c w,Z,nCJ- P KinrE fN 771-E- PpC.,27ys Poi -rep r--c. o 7 Please provide a detailed description of your PARKING plan: ; 7t t Pt f 4w$72f L7 P4 Kirt Js 1-0C—A7CD r tv 7ft. PLOPc27yS Prz.(v+r,E i c i(.9 Please describe your plan for DISABLED PARKING: WIC keCcuAM( OF pis, SPr t-oC4'a /Ai 7fig PLaPL - ys p2ty tE LD7s. 4 Please describe your plans to notify all residents, businesses and churches impacted by the event: C-�AnylVt'4-? ( tJ Q F cy/S7t NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. YES 140 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 O Will sound amplification be used? If YES, please indicate: Start time: 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 wilt be used for your event: Number of Bands: YES '_ NO Fireworks, rockets; or other pyrotechnics? If YES, please describe: YES _ NO Any signs, banners, decorations, special lighting? If YES, please describe: Eer p(c7v/LL SdPN vci18/4Y11#: is " 4-YU/EcJ-7OWC . C4)144 ru0a.9 14 u Revised 08/10/05 5 Event: For Office 'Use On4y 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 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 ail claims, demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attorneys fees and the costs of litigation, arising out of or related to the use of public property or the activity taken under the permit by the permittee or its agents, employees or contractors. Signature of Applicant U nJ/tz A-LjdL Official Title r11/20/1 Date For Office Use Only Certificate of Insurance Approved Date 7 Non-profit organizations, which meet the criteria on page v of the instructions, will be considered for a waiver. If you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsored by a non-profit organization? Yes (proceed to Question 2) No (Please sign the form and submit it with the TUP Application) 2. Please state the name and type of organization sponsoring the event for which the TUP is sought and then proceed to Question 3. Name of the sponsoring organization Type of Organization (Service Club, Church, Social Service Agency, etc.) 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) No (Please sign the form and submit it with the TUP Application) 4. Will the proceeds provide a direct financial benefit to an individual who resides in or is employed in the city, and who is in dire financial need due to health reasons or a death in the family? Yes (Please provide an explanation and details. No (Please proceed to Question 5) 8 5. 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 'polm at4jo !:43qo oqqnsou pue ::4es ;e1.4 os upriq eqi 01+ PalQuoue tI LUeLl; 'osIV x ,00 2eti4Jeuueq GLICI LAN; Jews AliElluEpqns x 09 acl 11!N\ leg; ui5's ;ALT\ pawedPWEJ E1aWe e!.19uuecl 014i. ' mirv.e.v.meersW=froraiiro.,.....rm— , . 4f, r, riltir,! rqr CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DIVISION APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDATIONS AND CONDITIONS SPONSORING ORGANIZATION: Pacifica Bayview LLC EVENT: Bayview Tower Banner DATE OF EVENT: January 26, 2011 thru December 31, 2011 TIME OF EVENT: N/A APPROVALS: DEVELOPMENT SERVICES YES [ ] NO [ X] SEE CONDITIONS [ x ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ ] PUBLIC WORKS YES [ x ] NO [ ] SEE CONDITIONS [ ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ ] COMMUNITY SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ ] CITY ATTORNEY YES [ ] NO [ x ] SEE CONDITIONS [ x ] CONDITIONS OF DENIAL: DEVELOPMENT SERVICES (619) 336-4318 Pacifica still has not paid the City's request for $3,516.56. This amount is for time and equipment associated withefforts to close the 8'h Street pedestrian bridge due to unsafe conditions, following earthquake on 4/4/2010. (copy of letter attached). CITY ATTORNEY The banner is not in compliance with the City's code requirements for signs (NCMC sections 18.62.100 and 18.62.170), which specifically addresses banners such as the one sought in this application. Our municipal code allows for banners that do not exceed 25 feet and do not exceed 60 days of posting. In addition, the City's temporary sign ordinance allows signs no greater than 50 square feet. Thus, the banner as proposed is not allowed pursuant to the Municipal Code. The TUP process is designed to allow uses, otherwise not allowed by the Municipal Code, for a temporary period of time. Temporary means that it is not permanent and is of limited duration. This current TUP application follows two prior requests, which were granted. Given the total length of time that the banner has been in place, it raises the question as to whether this is really a temporary use. Moreover, the use of the TUP process for this type of banner, which is specifically addressed in the municipal code, is debatable. Allowing the banner to continue under a TUP for another long duration of time exceeds reasonable interpretations of temporary under the code, especially given the existing code provisions related to signs CITY OF NATIONAL CITY - DEVELOPMENT SERVICES DEPARTMENT 1243 NATIONAL CITY BLVD., NATIONAL CITY, CA 91950 September 28, 2010 Pacifica Companies Attn: Ash Israni, President 1785 Hancock Street, Suite 100 San Diego, CA 92110 Dear Mr. Israni, On June 7, 2010, the City sent you an Invoice in the amount of $3,516.56 for time and equipment associated from the various Department efforts to close the 8th Street pedestrian bridge due to unsafe conditions, following the earthquake on April 4, 2010. A second letter was sent on July 22, 2010 reminding you and again providing you with the Invoice. To date, our Finance Department reports that payment has not been received for this Invoice. This is our final notification before referring this matter to our City Attorney's Office. We request that you submitted payment immediately to the City's Finance Department. If you have any questions concerning this Invoice, please contact me at (619) 336-4380. M•RYAM BA Development Services Director Attachments: June 7, 2010 Letter with Invoice and breakdown of charges July 22, 2010 Letter cc: Chris Zapata, City Manager Brad Raulston, Executive Director ,-7-4con;Pl c4I) • CITY OF NATIONAL CITY - DEVELOPMENT SERVICES DEPARTMENT 1243 NATIONAL CITY BLVD., NATIONAL CITY, CA 91950 July 22, 2010 Pacifica Companies Attn: Ash Israni, President 1785 Hancock Street, Suite 100 San Diego, CA 92110 Dear Mr. Israni, On June 7, 2010, the City sent you an Invoice in the amount of $3,516.56 for time and equipment associated from the various Department efforts to close the 8th Street pedestrian bridge due to unsafe conditions, following the earthquake on April 4, 2010. To date, our Finance Department reports that payment has not been received for this Invoice_ We request that you submitted payment immediately to the Gity's Finance Department. If you have any questions concerning this Invoice, please contact me at (619) 336-4380. MARYAM BABAKI Development Services Director Attachments: June 7, 2010 Letter with Invoice and breakdown of charges cc: Chris Zapata, City Manager Brad Raulston, Executive Director t'6 June 7, 2010 Pacifica Companies Attn: Ash Israni, President 1785 Hancock Street, Suite 100 San Diego, CA 92110 Dear Mr. lsrani, Attached is an Invoice from the City of National City in the amount of $3,516.56. This Invoice is for time and equipment associated from the various Departments with the closure of the 8th Street pedestrian bridge, due to unsafe condition, following the earthquake on April 4, 2010. This Invoice is due upon receipt, and should be submitted to the City of National City Finance Department Questions concerning the Invoice and breakdown of the Invoice should be directed to Maryam Babaki, Development Services Director at (619) 336-4380. aP CHRIS ZAPATA City Manager Attachments: Invoice Breakdown of Charges NATI TV i.. IACO$f0$HN C• ity of National City Development Services Department 1234 National City Boulevard National City, Ca 91950 Phone (619) 336-4380 Fax (619) 336-4321 TO: INVOICE INVOICE #20101050 DATE: JUNE 2, 2010 FOR: CLOSURE OF 8'" STREET PEDESTRIAN BRIDGE, DUE TO UNSAFE CONDITION, AFTER EARTHQUAKE. DESCRIPTION HOURS RATE AMOUNT See attached for breakdown of employee, task performed, date, time spent, hourly rates, and equipment fees. $3.516.56 TOTAL $3.516.56 Invoice due upon Receipt. Make all checks payable to "City of National City" Submit Payment to: City of National City Finance Department 1243 National City Boulevard National City, CA 91950 Employee Name Date Task Performed Time Spent Hourly (Hours) Rate TOTAL Barby Tipton, Stormwater Compliance Officer 4/7/2010 Assisted with street closures 2.75 41.01 112.78 Charles Nissley, Senior Civil Engineering Technician 4/7/2010 Inspection of bridge, closure of bridge entry 4.00 40,71 162,84 'Fire Crew 4/7/2010. Assisted Building Inspector by laddering pedestrian bridge at each end 0.50 302.00 151,00 James Slade. 4/7/2010 Visited site. Made calls to property manager to inform of issue. Notification to nearby businesses of closure of bridge, 2.00 41.34 82,68 Jeff Rouston, Equipment Operator 4/7/2010 Setting up traffic control 3.00 53,55 160,65 Lt. Keith Fifield 4/7/2010 Incident commander 1,50 94.16 141,24 Luis Sainz, Building Official 4/7/2010 Red tagging bridge as Unsafe and Do Not Occupy. Photographs taken of all bridge connections with assistance of Fire Deparmtent ladder, Assisted in organizing bridge and street closures with assistance from Public Works and Police Departments. 3.75 56.66 212,48 Maryam Babaki, Development Services Director 4/7/2010 Site visit, calls to property owner, coordination with Public Works and Police 5.50 83.39 458.65 Officer John McGough 4/7/201d Traffic Control 4,50 56.13 252,59 Officer Tiffany Ayles 4/7/2010 Traffic Control 0.50 59.00 29.50 S9t. Jeff Etzler, Control 4/7/2010 Supervlsor/Traffic 1.50 76.17 114,26 William Gonzalez, Traffic Painter 4/7/2010 Setting up traffic control 3.00 53.55 160.65 AVA Officer Vasquez 4/8/2010 Directing Traffic 2.75 33,28 91.31 Luis Sainz, Building Official 4/8/2010 Met on site with lan Blake and Jake Hill of Pacifica Companies (Bay View Towers). Discussed findings and concerns regarding pedestrian bridge structural connections. They assured me that their engineers had already looked at it earlier this morning and that a letter would be forthcoming regarding the repairs required. 1,00 56.66 56.66 Luis Sainz, Building Official 4/8/2010 Scheduled structural inspection with Chuck Mendenhall of EsGil Corporation, Mendenhall surveyed the bridge and the missing or incorrect Installation of all the connections to structural supports for the bridge. 2.00 56.66 113,32 Maryam Babaki, Development Services Director 4/8/2010 Follow-up with staff, site visit, 2.00 83.39 166,78 Officer Gisl 4/8/2010 Directing Traffic 2.25 60.69 136.55 'Officer,Mlller 4/8/2010 Directing Traffic 2.25 51.19 137.68 Officer Nuttall 4/8/2010 Checking closure/area 2 minutes 50,76 1.70 Sgt. Fabinski 4/8/2010 Directing Traffic 4,25 78,54 333.81 Stephen Manganiello, Traffic Engineer 4/8/2010 Field inspection of traffic detour 1.00 63.10 63,10 Stephen Manc o, Traffic Engine_. 4/8/2010 Adjust signal timing to accomodat wr 1.00 63.1( 63,10 Luis Sainz, Building Official 4/9/2010 Provided inspection to verify repairs to pedestrian bridge were conducted as per the engineer of records requirements. Inspection revealed that work was not completed and not to the specifications, Ian Blake was also on site and asked me to wait while his contractor corrected the repairs, Repairs corrected and inspection passed. 1,00 56.66 56.66 Din Daneshfar, Principal 'Civil Engineer 4/12/2010 Site visit and follow-up with Engjneering staff 1,00 66,45 66,45 EQUIPMENT PW Truck 4/7/201.0 Use of Public Works Truck 3,00 20,38 61.14 Barricades 4/7/2010 Use of 20 barricades for traffic control 20 0.35 7.00 Fire Truck 4/7/2010 Response fee 122,00 3,516,56 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 25, 2011 AGENDA ITEM NO. 17 EM TITLE: TEMPORARY USE PERMIT — Circus Vargas sponsored by Tabares Entertainment from February 24 thru 28, 2011 at the Plaza Bonita Mall with no waiver of fees. PREPARED BY:Vianey Rolon DEPARTMENT: Neighborhood Services Division PHONE: (619) 336-4364 EXPLANATION: APPROVED BY: This is a request from Tabares Entertainment to conduct the Circus Vargas event at Plaza Bonita Mall from February 24 thru 28, 2011. Set up for the event will commence at 8:00 a.m. on February 22-23, 2011 on the east parking lot of the mall. Each performance lasts approximately 1 Y2 hours. The showtimes are as follows: Thursday, Feb. 24, 2011 Friday, Feb. 25, 2011 Saturday, Feb 26, 2011 Sunday, Feb. 27, 2011 Monday, Feb. 28, 2011 7:30 p.m. 7:30 p.m. 1:30 p.m., 4:30 p.m., 7:30 p.m. 12:30 p.m., 3:30 p.m., 6:30 p.m. 6:30 p.m. The event will be dismantled on February 29, 2011 at 2 p.m. This is a completely self-contained event in a traditional big top circus with concessions. There are no performing animals, no rides, no games, no outside vendors and no alcohol. Vehicles are used for transportation of operations. There will be eight internal Security Guards and sufficient parking is available at the Mall. Food will be prepared on -site in a trailer. Clean-up will be performed after each show. FINANCIAL STATEMENT: ACCOUNT NO. The City has incurred $237.00 for processing the TUP, plus $200.00 for the Fire Pern it(s). Total fees: $437.00. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval. BOARD / COMMISSION RECOMMENDATION: -—�ACHMENTS: , .ppiication for a Temporary Use Permit. Type of Event: _ Public Concert Parade Motion Picture Fair _ Demonstration Grand Opening Event Title: Circus Vargas _festival Circus Other _ Community Event Block Party Event Location: Westfield Plaza Bonita Event Date(s) : From 2/24/2011to 2/28/2011 Month/Day/Year Actual Event Hours: 12:30 am 9:30 Total Anticipated Attendance: 300-500 per show ( 30 Participants) ( 300 Spectators) mj{im j Ilours Vary, see attached Setup/assembly/construction Date: Feb 22-23 Start time: 8:00 am Please describe the scope of your setup/assembly work (specific details): Set up Big Top Tent, bleachers, lighting. etc Dismantle Date: Feb 29 Completion Time: 2:00 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. None Sponsoring Organization: Tabares Entertainment, Inc X For Profit Not -for -Profit Chief Officer of Organization (Name) Nelson Quiroga Applicant (Name): Mark Landon t10 - C«c..JsVo.(ys, or� Address: 2534 S. Pleasant Ave. Ontario, CA 91761 Daytime Phone: ( 80)0 675-2441 Evening Phone: (800) 675-2441 Contact Person "on site" day of the event: Nelson Quiroga Fax: (909) 986-0712 Pager/Cellular: 702-513-9767 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? _ YES X NO Are admission, entry, vendor or participant fees required? X YES _ NO If YES, please explain the purpose and provide amount(s): Admissions $1.5 - $60 $ 45,000 Estimated Gross Receipts including ticket, product and sponsorship sales from this event. $ 35,000 Estimated Expenses for this event. $ 10,000 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. Circus Vargas provides a traditional big top circus with concessions. There are no performing animals, no rides, no games, no outside vendors and no alcohol. Vehicles are used for transportation of operations. YES X NO If the event involves the sale of cars, will the cars come exclusively from National City car dealers? If NO, list any additional dealers involved in the sale: 2 _ YES X NO Does the event involve the sale or use of alcoholic beverages? X YES _ NO Will items or services be sold at the event? If yes, please describe: Tickets. food items and novelties YES X NO Does the event involve a moving route of any kind along streets, sidewalks or X highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. YES NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing atl streets impacted by the event_ X YES NO Does the event involve the use of tents or canopies? If YES: Number of tent/canopies 1 Sizes 147-feet round NOTE: A separate Fire Department permit is required for tents or canopies. 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: Prepared and served from trailer and also from booth inside tent If you intend to cook food in the event area please specify the method: GAS X ELECTRIC CHARCOAL OTHER (Specify): 'r Portable and/or Permanent Toilet Facilities Number of portable toilets: 6 (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 y Generator locations and/or source of electricity • Canopies or tent locations (include tent/canopy dimensions) ➢ Booths, exhibits, displays or enclosures ✓ Scaffolding, bleachers, platforms, stages, grandstands or related structures • Vehicles and/or trailers Other related event components not covered above • Trash containers and dumpsters (Note: You must properly dispose of waste and garbage throughout the term of your event and immediately upon conclusion of the event the area must be returned to a clean condition.) Number of trash cans: 6 Trash containers with lids: 6 Describe your plan for clean-up and removal of waste and garbage during and after the event: Clean up after every show and dumpster emptied as needed 3 Please describe your procedures for both Crowd Control and Internal Security: 8 internal security staff YES X NO Have you hired any Professional Security organization to handle security arrangements for this event? If YES, please list: Security Organization: Security Organization Address - Security Director (Name): Phone: XYES _ 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: Mall Parking Lot lights Please indicate what arrangement you have made for providing First Aid Staffing and Equipment. First aid kit available in ticket booth. 911 for emergencies. Please describe your Accessibility Plan for access at your event by individuals with disabilities: Entire operation is accessible since the parking lt is flat. Please provide a detailed description of your PARKING plan: See attached map Please describe your plan for DISABLED PARKING: Disabled Parking provided in front of tent. 4 Please describe your plans to notify all residents, businesses and churches impacted by the event: Tent should not impact mall needs at that time. Mali management is informed and communicates with tennants. NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. YES X NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: Type of Music: XYES _ NO Will sound amplification be used? If YES, please indicate: YES X NO Start time: 12:30 Number of Bands: Finish Time 9:30 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: Microphones and speakers _ YES XNO Fireworks, rockets, or other pyrotechnics? If YES, please describe: _ YES XNO Any signs, banners, decorations, special lighting? If YES, please describe: Revised 08/10/05 5 Event: For Office 'Use Only Department Date Approved? Yes No Initial Specific Conditions of Approval Council Meeting Date: Approved: Yes No Vote: Kathleen Trees, Director Building & Safety Department 6 City of National City PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION AGREEMENT Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit. Organization Tabares Entertainment. Inc. dba Circus Vargas Person in Charge of Activity Nelson Quiroga Address 2534 S. Pleasant Ave. Ontario, CA 91761 Telephone 800-675-2441, ext 103 Date(s) of Use February 24 - 28, 2011 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. Signal re f Applica Locations Director t Z D / j Official Title Date For Office Use Only Certificate of Insurance Approved Date 7 Non-profit organizations, which meet the criteria on page v of the instructions, will be considered for a waiver. If you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsored by a non-profit organization? Yes (proceed to Question 2) X No (Please sign the form and submit it with the TUP Application) 2. Please state the name and type of organization sponsoring the event for which the TUP is sought and then proceed to Question 3. Name of the sponsoring organization Type of Organization (Service Club, Church, Social Service Agency, etc.) 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) No (Please sign the form and submit it with the TUP Application) 4. Will the proceeds provide a direct financial benefit to an individual who resides in or is employed in the city, and who is in dire financial need due to health reasons or a death in the family? Yes (Please provide an explanation and details. No (Please proceed to Question 5) 8 5. Will the proceeds provide a direct financial benefit to city 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) XPO Si gna ur " Date" t� 9 00.1 rt� rs outs National City Westfield Plaza Bonita February 24 — 28, 2011 Thur February 24 7:30 pm Fri February 25 7:30 pm Sat February 26 1:30 4:30 7:30 pm Sun February 27 12:30 3:30 6:30 pm Mon February 28 6:30 pm LENGTH OF SHOW: Approximately one and one-half hours EXPECTED ATTENDANCE: 300 -500 per performance SEATING CAPACITY OF TENT: 1,500 NO GAMES OF CHANCE NO MECHANICAL RIDES NO PERFORMING ANIMALS NO ALCOHOL IS SOLD OR SERVED NO OUTSIDE CONTRACTED VENDORS Circus Management provides in-house security guards. Management carries cell phone in case of 911 Emergency Circus Vargas is completely self-contained. The show has a double generator system. If the main generator shuts down, the back up generator automatically turns on. A source of water is usually provided to the circus by the venue on which the circus conducts business. Circus Vargas rents porta-potties from local sanitation companies. Since Circus Vargas is a family show and attracts primarily families, in-house security is normally sufficient to provide appropriate crowd control. The security can use cell phones to contact local law enforcement if the need exists. yarnn 'p'r° ing Emergency Exit m qC , Emergency .J a Exit Fire Lane SkLam. Circus Vargas Tent 147-feet Round , Emergency Exit RAF s. �-,„._ w 0, ` --- -- c l'@ e!T c w Public Entrance 33* : 56• — 1T 1T Tickets 1 Entry' Entry Gate Gate Emergency Exit -zr Poi at Emergency ; , t— v Exit$( ;l co Emergency r Ex tf r �r k%i� i 0 0 ❑ 6 Porta-pottles ❑ 8 Access/04o Porta-Potty Circus Vargas Generic Lot Layout Specific layout may be modified for the location where the how is set up. This sheet is provided to show the entire operation and approximate locations of items to be set up. %%'ater is obtained from a local lhdrant and all used water is held in tanks until pumped. Exit CENTER RING 42' 1 -- 20' EXIT 7 — 10' EXITS X — Fire Extinguishers (Total of 16, located an rand five, near exits) Public Entrance 33'x56' Area Marked Green are bleacher benches Area Marked as chairs are plastic seats on bleachers Boxes around ring have 2 rows of 4 loose chairs each with an aisle between groups of two. Chairs are removed for Handicapped Seating on an as -needed basis 10' it e laa tl e 0 Seating Capacity 1,250 Illuminated Exit Sign with 2 sources of power above every exit Curtain openings at exits have contrasting colors to the tent and are on a free -sliding metal support. No Smoking Signs Posted inside Tent AL CALIFORNIA DEPARTMENT OF FORESTRY and FIRE PROTECTION OFFICE OF THE STATE FIRE MARSHAL REGISTERED F RESISTANT PRODUCT Product: Registration No. PRECONTRAITT 502/532/832/1002 F-44401 Product Marketed By: FERRARI SA BX54,38352 LA TOUR DU PIN LA TOUR DU PIN,FRANCE This product meets the minimum requirements of flame resistance established by the California State Fire Marshal for products identified in Section 13115, California Health and Safety Code. The scope of the approved use of this product is provided in the current edition of the CALIFORNL4 APPROVED LIST OF FLAME RETARDANT CFHEM!CALS AND FABRICS, GENERAL AND LIMITED APPLICATIONS CONCERNS published by the California State Fire Nlarshal. Expire: 06/30/2011 e Fire Ma r2.1 Wsifiek[ Plaza Bonita December 13, 2010 City of National City Building Department 1243 National City Boulevard National City, California 91950-4301 Re: Temporary Use Permit Circus Vargas Westfield Plaza Bonita To Whom It May Concern: 3030 Plaza Bonita Road #2075 National City, CA 91950 T 619.267.2850 F 619.472.5652 I hereby authorize Mark Landon, acting as representative of Circus Vargas, to operate a circus in the parking lot #7 at Westfield Plaza Bonita during the dates of February 24, 2011 through February 28, 2011. Circus Vargas will have permission to install temporary power to poles in parking lot 7 to provide power during occupancy. Circus Vargas will obtain all necessary permits from National City for occupancy at Plaza Bonita. Please call me if you have any additional questions. Thank you, Ryan Per General iVYanager Westfield Plaza Bonita • CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 25, 2011 AGENDA ITEM NO. 18 iM TITLE: Notice of Decision — Planning Commission approval of a Zone Variance to allow parking spaces and Tight poles in the front yard setback at an existing church at 125 Palm Avenue. (Applicant Misael Zaragoza) (Case File 2010-35 Z CUP) PREPARED BY: Martin R der DEPARTMENT: Dev PHONE: 336-4313 APPROVED cs/Planning. EXPLANATION: The project site is the Apostolic Assembly church located on the east side of Palm Avenue, south of Division Street and east of Interstate 805 in the IP-PD zone. The property has been historically under -parked, having been approved with 63 parking spaces rather than the requisite 96 spaces. The applicant proposes to construct 11 parking spaces and two Tight poles within an existing landscaped area in the front yard setback along the west property line. Additional landscaping is also proposed within a five-foot wide area between the proposed parking spaces and the perimeter fence. The reason for the variance is because the Land Use Code does not allow for parking or accessory structures (light poles) within the front yard setback. The Planning Commission conducted a public hearing on January 10, 2011, at which time Commissioners asked questions regarding existing and proposed site improvements. The Commission voted to approve the variance heed on required findings and subject to Conditions of Approval. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: ENVIRONMENTAL REVIEW: Categorically Exempt pursuant to Class 1 Section 15311 b (Accessory Structures) ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Staff concurs with the decision of the Planning Commission and recommends that the Notice of Decision be filed. BOARD / COMMISSION RECOMMENDATION: The Planning Commission approved the Zone Variance. Ayes: Alvarado, Baca, DeLaPaz, Farias, Flores, Pruitt, Reynolds ATTACHMENTS: Location Map 3. Resolution No. 1-2011 Planning Commission Staff Report 4. Reduced Plans Division Stre- A 0 0 0 co I_ 0) u7 Est Ave /� -Paraiso_Ct' 127 129 n 135 134 1321 v EP 3� D 2 cD 145 205 08 144 202 CL RS-3-PD 212 228 242 RM-3 -PD 306 CL MIN IC i.\ Army National Guard 4. t t Subject Parcel - - - Zone Boundary 0 75 150 I Feet 300 APN: 554-050-17 Planning Commission Location Map 2010-35 Z 2 14.10 Title: Item no. 4 January 10, 2011 11YC0&YDHAKE4.. CITY OF NATIONAL CITY - DEVELOPMENT SERVICES DEPARTMENT 1243 NATIONAL CITY BLVD., NATIONAL CITY, CA 91950 PLANNING COMMISSION STAFF REPORT PUBLIC HEARING — ZONE VARIANCE TO ALLOW PARKING SPACES AND LIGHT POLES IN THE FRONT YARD SETBACK AT AN EXISTING CHURCH LOCATED AT 125 PALM AVENUE. Case File No.: 2010-35 Z Location: Palm Avenue near Division Street Assessor's Parcel No.: 564-391-05 Staff report by: Michael Fellows Applicant/ Property Misael Zaragoza / Apostolic Assembly of the Faith in owner: Christ Jesus Corporation Combined General Plan/ IP (Private Institutional) Zoning designation: Adjacent land use/zoning: North: 1-805 / OS East: 1-805 / OS South: Army National Guard Armory / IC West: Single-family and multi family residential uses / CL Environmental review. Categorically Exempt pursuant to Class 4 Section 15311 (b) (Accessory Structures) 2 BACKGROUND Site Characteristics The Apostolic Assembly church is located at 125 Palm Avenue adjacent to Interstate 805 and the National Guard Armory to the south. The irregularly shaped, 1.27 acre property is zoned Private Institutional -Planned Development (1P-PD). It has almost 490 feet of frontage on Palm Avenue, and it narrows from approximately 250 feet at its south end to just 48 feet at its north end. It also gently slopes down from south to north. It is developed with a two-story, 16,000 square foot church building, and a 63-space parking lot. There is also a 25-foot wide landscape strip along the property's frontage with Palm Avenue. There are two driveways accessing the property from Palm Avenue, one at the north end and one at the south adjacent to the Armory. Interstate 805, which gently curves around the property, is located to the east and north. There are single-family homes and apartments in the Limited Commercial (CL) zone west of the site across Palm Avenue, and as previously noted the National Guard Armory is south of the site. History • CUP-1981-5 Approved construction of a 16,280 square foot, two story church • Z-1-81 Approved a Variance to allow reduction in the number of required off-street parking spaces from 96 to 63 spaces in conjunction with the development of the church. • Z-13-83 Approved a Variance application for a 6-foot high fence located in the front yard setback. • Z-2001-01 Incomplete application to allow parking in the front yard setback • CUP-2003-11 Approved a charter school located inside the church building • CUP-2006-9 Approved, but not exercised, for the construction and expansion of a charter school, including paving of front yard at the church. • 2008-29 M1, CUP-2003-11 Approved installation of a modular building for the charter school at the church. Proposed Use The applicant proposes to expand the existing church parking lot (11 parking spaces and two light poles) by 2,624 square feet into a landscape area located along the west property line adjacent to Palm Avenue in the front yard setback. A five foot strip of landscaping with four palm trees would be installed along the west property line. Analysis The applicant is required to apply for this Variance to commence the proposed project since the Land Use Code does not allow parking spaces or accessory structures (light poles) in the front yard setback. Properties located in the IP zone typically require a 10- foot setback. In this case, the setback is 25-feet due to a Specific Plan (SP 1472) for the future expansion of Palm Avenue. The Engineering Division has indicated that there are no plans to widen Palm Avenue in the near future. 3 In 2008, The Planning Commission approved the installation of modular buildings on the subject property for the operation of Integrity Charter School. The school has since relocated, and the modular buildings have been removed. The area previously occupied by the buildings has no vegetation, and is where the applicant proposes to pave. The church was approved for a Zone Variance (Z-1-81) that allowed it to be constructed with 63 parking spaces, 33 parking spaces less than Code requirements. Approval of the current Variance application would net the church six additional parking spaces, bringing the total number of approved parking spaces to 69. The applicant has expressed a need for the additional parking. The two proposed Tight poles would be 21 feet tall, located three feet from the front property line, with lights oriented towards Interstate 805 (away from residences across Palm Avenue). Existing landscaping around the church building is mostly well maintained. There is a grassy area located between the church building and Palm Avenue. Potted palm trees are located around the church property and in a landscaped area near the church entry. Approval of this Variance will reduce landscape area by 2,264 square feet on the property that has already been reduced by paving without approval. Specifically, the area occupied by parking spaces 33-39 on the site plan was approved as a landscape area, and a rectangular area located near the playground was landscape. Both locations are now paved. Furthermore, parking spaces 33-39 do not meet City Code requirements. The church was originally constructed with a trash enclosure, as required by City Code. The enclosure has since been removed. Staff requests the applicant construct a trash enclosure to contain the dumpster located at the site. Conditions of Approval Planning Division requests the applicant be required to submit a revised site plan, approved by the Planning Division, prior to issuance of grading permits or building permits. The site plan should reflect new landscaping and planters on the property, a trash enclosure, and parking spaces 33-39 to standard parking dimensions or returned to landscape area. The Variance will expire and building permits not finaled until all improvements on the site plan are completed. Also, a Condition has been added that the parking lot lights will be adjusted so the light is directed to fall on the church premises only, and the new parking spaces located in the front yard setback shall not be considered for any future expansion of the church including: new construction or seating capacity. This Condition is necessary since the parking spaces will be eliminated when Palm Avenue is widened. Engineering Division added Conditions that require the applicant submit a grading and drainage plan and obtain a construction permit prior commencing the project. Also, that the owner acknowledges that structures placed in the setback area must be removed when Palm Avenue is widened and shall be responsible for the cost. 4 Building Division is requiring the applicant obtain a building permit for the installation of the Tight poles to current Building and Fire Codes. Summary While reductions of landscape area should be avoided, the reduction seems justifiable given the increase in parking spaces on the under parked site. Furthermore, the existing landscape around the church building will remain. Lastly, the landscape area proposed to be paved is not visible from Palm Avenue since there is a 6-foot high wall along the property line. RECOMMENDATION Approve 2010-35 Z subject to the conditions listed below, based on attached findings; or ATTACHMENTS 1. Recommended Findings for Approval 2. Recommended Conditions of Approval 3. Location Map 4. Notice of Exemption 5. Public Hearing Notice (Sent to 21 property owners) 6. Site photos 7. Applicant's Plans (Exhibit A, case file no. 2010-35 Z, dated 11/24/2010) 11A- 74mi ,„ MICHAEL FELLOWS ARYAM Bi(BAK-I- - Planning Technician Development Services Director 5 RECOMMENDED FINDINGS FOR APPROVAL 2010-35 Z, 125 Palm Avenue. 1. Because of special circumstances applicable to the property, the strict application of Title 18 of the Municipal Code (Zoning) deprives such property of privileges enjoyed by other properties in the vicinity and under the identical zone classification, since the narrow width of the lot reduces useable lot area proportionally greater than other properties located in the IP zone. 2. The requested Variance is subject to such conditions which will assure that the adjustment authorized will not constitute a grant of special privileges inconsistent with the limitations upon other properties in the vicinity and zone in which such property is situated, since the triangular lot has more property restricted by the front yard setback than a standard shaped lot of the same square footage. 3. The Variance does not authorize a use or activity which is not otherwise expressly authorized by the zoning regulations governing the parcel of property, since parking lots are an allowable use or activity in the IP zone. 6 RECOMMENDED CONDITIONS OF APPROVAL 2010-35 Z, 125 palm Avenue. General 1. This Zone Variance authorizes the expansion of a parking lot (paving and light poles) in the front yard setback at an existing church located at 125 Palm Avenue. Plans submitted for approvals shall be in substantial conformance with Exhibit A, case file no. 2010-35 Z, dated 11/24/2010. 2. Within four (4) days of approval, pursuant to Fish and Game Code 711.4 and the California Code of Regulations, Title 14, Section 753.5, the applicant shall pay all necessary environmental filing fees for the San Diego County Clerk. Checks shall be made payable to the County Clerk and submitted to the National City Planning Department. 3. This permit shall become null and void if not exercised within one year after adoption of the Resolution of approval unless extended according to procedures specified in Section 18.116.190 of the Municipal Code. 4. Before this Zone Variance shall become effective, the applicant and the property owner both shall sign and have notarized an Acceptance Form, provided by the Planning Division, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Zone Variance. The applicant shall also submit evidence to the satisfaction of the Development Services Director that a Notice of Restriction on Real Property is recorded with the County Recorder. The applicant shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Zone Variance are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to form by the City Attorney and signed by the Development Services Director prior to recordation. Building 5. Any plans submitted for improvements must comply with the current editions of the California Building Code, the California Mechanical Code, the California Plumbing Code, the California Electrical Code, and California Title 24 energy and handicapped regulations. 6. Obtain a building permit prior to installation of the light poles. Engineering 7. The owner understands that any structure placed within the setback area may be removed or relocated in the future for street widening purposes. 8. The owner shall be responsible for the cost of removal and/or relocation of all structures placed in the setback area by the owner or their contractor, developer, or leasers. 9. The owner shall submit a grading and drainage plan for the construction of the parking facility and obtain a construction permit from the City Engineers Office. Planning 10.The applicant shall submit a revised site plan approved by the Planning Division prior to the issuance of grading permits or building permits. The site plan shall reflect new landscaping and planters on the property, a covered trash enclosure, and parking spaces 33-39 to standard parking dimensions or returned to landscape area. 11. This Variance shall expire one year from the approval date if the improvements described in Condition #10 are not installed to the satisfaction of the Planning Division. Additionally, no building permit shall be finaled until improvements in Condition #10 are completed. 12. Parking spaces located in the front yard setback cannot be counted towards the expansion of the church with regards to new construction, seating capacity, etc. since expansion of Palm Avenue will eventually require removal of the spaces. 13. Light from the light poles shall be shaded and adjusted to fall only on church property. RESOLUTION NO. 1-2011 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA, APPROVING A ZONE VARIANCE TO ALLOW PARKING SPACES AND LIGHT POLES IN THE FRONT YARD SETBACK AT AN EXISTING CHURCH LOCATED AT 125 PALM AVENUE. APPLICANT: MISAEL ZARAGOZA/APOSTOLIC ASSEMBLY OF THE FAITH IN CHRIST JESUS CORPORATION CASE FILE NO. 2010-35 Z WHEREAS, the Planning Commission of the City of National City considered a Zone Variance to allow parking spaces and light poles in the front yard setback at an existing church located at 125 Palm Avenue at a duly advertised public hearing held on January 10, 2011, at which time oral and documentary evidence was presented; and, WHEREAS, at said public hearings the Planning Commission considered the staff report contained in Case File No. 2010-35 Z, which is maintained by the City and incorporated herein by reference along with evidence and testimony at said hearing; and, WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law; and, WHEREAS, the action recited herein is found to be essential for the preservation of public health, safety, and general welfare. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of National City, California, that the testimony and evidence presented to the Planning Commission at the public hearing held on January 10, 2011, support the following findings: 1. Because of special circumstances applicable to the property, the strict application of Title 18 of the Municipal Code (Zoning) deprives such property of privileges enjoyed by other properties in the vicinity and under the identical zone classification, since the narrow width of the lot reduces useable lot area proportionally greater than other properties located in the IP zone. 2. The requested Variance is subject to such conditions which will assure that the adjustment authorized will not constitute a grant of special privileges inconsistent with the limitations upon other properties in the vicinity and zone in which such property is situated, since the triangular lot has more property restricted by the front yard setback than a standard shaped lot of the same square footage. 9 3. The Variance does not authorize a use or activity which is not otherwise expressly authorized by the zoning regulations governing the parcel of property, since parking lots are an allowable use or activity in the IP zone. BE IT FURTHER RESOLVED that the application for Zone Variance is approved subject to the following conditions: General 1. This Zone Variance authorizes the expansion of a parking lot (paving and light poles) in the front yard setback at an existing church located at 125 Palm Avenue. Plans submitted for approvals shall be in substantial conformance with Exhibit A, case file no. 2010-35 Z, dated 11/24/2010. 2. Within four (4) days of approval, pursuant to Fish and Game Code 711.4 and the California Code of Regulations, Title 14, Section 753.5, the applicant shall pay all necessary environmental filing fees for the San Diego County Clerk. Checks shall be made payable to the County Clerk and submitted to the National City Planning Department. 3. This permit shall become null and void if not exercised within one year after adoption of the Resolution of approval unless extended according to procedures specified in Section 18.116.190 of the Municipal Code. 4. Before this Zone Variance shall become effective, the applicant and the property owner both shall sign and have notarized an Acceptance Form, provided by the Planning Division, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the Zone Variance. The applicant shall also submit evidence to the satisfaction of the Development Services Director that a Notice of Restriction on Real Property is recorded with the County Recorder. The applicant shall pay necessary recording fees to the County. The Notice of Restriction shall provide information that conditions imposed by approval of the Zone Variance are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to form by the City Attorney and signed by the Development Services Director prior to recordation. Building 5. Any plans submitted for improvements must comply with the current editions of the California Building Code, the California Mechanical Code, the California Plumbing Code, the California Electrical Code, and California Title 24 energy and handicapped regulations. 6. Obtain a building permit prior to installation of the light poles. 10 Engineering 7. The owner understands that any structure placed within the setback area may be removed or relocated in the future for street widening purposes. 8. The owner shall be responsible for the cost of removal and/or relocation of all structures placed in the setback area by the owner or their contractor, developer, or leasers. 9. The owner shall submit a grading and drainage plan for the construction of the parking facility and obtain a construction permit from the City Engineers Office. Planning 10. The applicant shall submit a revised site plan approved by the Planning Division prior to the issuance of grading permits or building permits. The site plan shall reflect new landscaping and planters on the property, a covered trash enclosure, and parking spaces 33-39 to standard parking dimensions or returned to landscape area. 11. This Variance shall expire one year from the approval date if the improvements described in Condition #10 are not installed to the satisfaction of the Planning Division. Additionally, no building permit shall be finaled until improvements in Condition #10 are completed. 12. Parking spaces located in the front yard setback cannot be counted towards the expansion of the church with regards to new construction, seating capacity, etc. since expansion of Palm Avenue will eventually require removal of the spaces. 13. Light from the light poles shall be shaded and adjusted to fall only on church property. BE IT FINALLY RESOLVED that this Resolution shall become effective and final on the day following the City Council meeting where the Planning Commission resolution is set for review, unless an appeal in writing is filed with the City Clerk prior to 5:00 p.m. on the day of that City Council meeting. The City Council may, at that meeting, appeal the decision of the Planning Commission and set the matter for public hearing. CERTIFICATION: This certifies that the Resolution was adopted by the Planning Commission at their meeting of January 10, 2011, by the following vote: AYES: NAYS: ABSENT: ABSTAIN: DeLaPaz, Farias, Alvarado, Baca, Pruitt, Reynolds, Flores l t'rf�IRP SON 11 ADA26 +•.4• e41ait 60000 T VIM. 00A. m.ae' J14LL rw1(.I , 11 4AL211,'OL6 45A0' 4' 6' L1rwo16a LO++rN9 0V-00019 1900., DATA.. 701fl% eee a' 44. I+AND 110I.11 I6E0C11LE0 00.r9+J v' . W44' M,C.IKR ' Wine' - 400' DOLT PWJlcTiON 9 24' ACY+D 1.1.4r role SAM IY/ 1TYLC0, MArcw .X14roaa in COOPED 4b 90: DID ROO. a 7 014 PVC ILlOTbc „Crdidi57 add 40) !MAT J WIN c4090l 4. 24' DIKFpATIR R:Jo CONCRl1! Mm9 ia u nW VICINI'Y M� (u ,16,114rr uwa..o+0! 1)L• IRON WC.Yaw-, 6 0 (4J 9 ♦914,44. IQpAtl1. e'00. 11) R .IOlardlrµ IN54 417. 04. Co+'1.er[ DETAIL 4 OCALA, I/6'.1.0' *101t 4' 1 FDi�OJ;CT DATA: OWNER: CHR13T''AN CENTER OF NATIONAL CIT" C/O PASTOR MISAEL ZARAGOZA 125 PALM AvE NATIONAL CITY, CA 91950 (619) 474 5643 SITE ADDRESS: 125 PALM AVENUE NATIONAL CITY, CA 91950 APN4.050 - r - 0C L EGAL, RECORD OF SURVEY 5990 . CT 8'ZE: 1,21 ACRE BUILDING TYPE: v•N, FIRE SPR'NKLER EXITING PARKING SPACE: T8 D15ABt.ED ACCESS PARKING: 3 1:9' 410 ' SCOPE OF ''.UO,RK ONEW (2) .ARKING 21' N'.GI- ,.IGI-:TING POST OED PROP05ED CONCRETE AREA. 21.24. *NEW (4) OJEEN PALM TREES, 112' � v 30 29 26 154 27 26 6506T043 TUO•STper DJiLD194 6PRINKLIR 6Ys7r-1 riR6T 61-CC (!.() . 0,111 60. R. 6e00ND .LOOR'A-2.I) . /966 TOTAL .16147 6A PT, 167 ' EXHIBIT A CASE FILE NO. 2010-35 CUP DATE: 11 /24i 10 24 E) e0' DR VEI.AY 23 i q-PAL-1 AVE. PPOPOSED PLOT PLAN SCALE: 1' "a F No, R.40q owl wiv w4.441r No. P4K 2626 Ridgeway Dr, 1.1A11091 City, CA 919e0 (611) 261 2166 M(W4248n411606 A-1 TING DATE: CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION COUNCIL AGENDA STATEMENT January 25th, 2011 AGENDA ITEM NO. 19 ITEM TITLE: Authorize the reimbursement of Community Development Commission expenditures in the amount of $858,469.54 to the City of National City for the period of 12/01/10 through 12/07/10 PREPARED BY: K. Apalategui, PHONE: 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 expenditures for the CDC. DEPARTMENT: APPROVED BY: Attached is a detailed listing of all CDC warrants paid for with the City General Funds. Staff requests approval of the reimbursement of CDC activity. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Approve the reimbursement of funds to the City of National City in the amount of $858,469.54 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Accept and File. BOARD / COMMISSION RECOMMENDATION: N/A ACHMENTS: Warrants for the period of 12/01/10 through 12/07/10 COMMUNITY DEVELOPMENT COMMISSION WARRANT REGISTER #23 12/7/2010 PAYEE DESCRIPTION CHK NO DATE AMOUNT DIXIELINE BUILDERS CONSTRUCTN SVCSICASA FAMILIAR 239425 12/7/10 4,304.59 SAN DIEGO HABITAT FOR HUMANITY DDA WITH HABITAT FOR HUMANITY 239426 12/7/10 151,858.00 TIERRA WEST ADVISORS INC AGREEMENT / TIERRA WEST ADVISORS 239427 12/7/10 21,811.50 U S BANK SERVICE CENTER CREDIT CARD EXPENSES / CDC 239428 12/7/10 606.55 COUNTY OF SAN DIEGO MAIL PROCESSING SVC 239443 12/7/10 1,741.55 GEOSYNTEC CONSULTANTS 835 BAY MARINA DRIVE 239453 12/7/10 290.04 HUSK PARTNERS CONSULTING SERVICES / DEC 2010 239457 12/7/10 7,500.00 LADRIDO TRAV EXP FOR GFOA TRAINING 239462 12/7/10 97.15 DEUTSCHE BANK THE BANK OF NEW YORK MELLON rtoN 8 :TION 8 HAPS PAYMENTS 2004 TAB Payment 1999 TAB Payment Start Date End Date 12/1/2010 12/7/2010 AIP Total $ 188,209.38 7/29/10 7/29/10 670,260.16 GRAND TOTAL $ 858,469.54 TING DATE: CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION COUNCIL AGENDA STATEMENT January 25th, 2011 AGENDA ITEM NO. 20 ITEM TITLE: Authorize the reimbursement of Community Development Commission expenditures in the amount of $192,124.07 to the City of National City for the period of 12/08/10 through 12/14/10 PREPARED BY: K. Apalategui DEPARTMENT: PHONE: I619-336-4331APPROVED BY: 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 expenditures for the CDC. Attached is a detailed listing of all CDC warrants paid for with the City General Funds. Staff requests approval of the reimbursement of CDC activity. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: Approve the reimbursement of funds to the City of National City in the amount of $192,124.07 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Accept and File. BOARD 1 COMMISSION RECOMMENDATION: N/A fACHMENTS: Warrants for the period of 12/08/10 through 12/14/10 N COMMUNITY DEVELOPMENT COMMISSION WARRANT REGISTER #24 12/14/2010 PAYEE BEST BEST & KRIEGER LLP CA ASSOC OF CODE ENFORCEMENT EQUIFAX INFORMATION SVCS GEORGE A & OLGA T CONTRERAS NINYO & MOORE PRO BUILD PRUDENTIAL OVERALL SUPPLY SAN DIEGO TROLLEY INC VISTA PAINT WESTFLEX INDUSTRIAL BEST BEST & KRIEGER LLP BLUE PACIFIC ENGINEERING CITY OF NATIONAL CITY DELTA CARE (PMI) EDCO DISPOSAL CORPORATION EHS LABORATORIES FAST SIGNS :OSYNTEC CONSULTANTS SER SAVER INC MAZZARELLA CALDARELLI LLP PUBLIC FINANCIAL MANAGEMENT STAPLES ADVANTAGE U S BANK SERVICE CENTER VERIZON WIRELESS CCH FEDEX HUSK PARTNERS MAYER HOFFMAN MCCANN PC STAPLES ADVANTAGE PAYROLL Pay period Start Date 24 11/16/2010 DESCRIPTION RDA AMENDMENT MATTERS 2011 CACEO MEMBERSHIP COST CREDIT CHECK FOR SEC8 REIMBURSEMENT FOR LOAN CDC GEOTECHNICAL MAT TESTING SVCS MOP# 45707. PAINTING SUPPLIES/NSD MOP# 45742. LAUNDRY SERVICES/NSD FLAGGING SERVICES MOP 68834 PAINTING SUPPLIES -CD MOP 63850 AUTO PARTS COMM YOUTH ATHLETIC CENTER PROGRESS PAYMENT 1 ART CENTER PETTY CASH REPLENISHMENT-OCT 2010 DENTAL INS PMI - DEC 2010 WASTE DISPOSAL FOR CDC- NOV 2010 LEAD WIPES BANNER SERVICES CDC EDUCATION VILLAGE TONER CARTRIDGE - FINANCE PORT OF SD MATTERS NC DEFEASANCE MOP 45704 OFFICE SUPPLIES - FINANCE CREDIT CARD EXP - PD WIRELESS SERVICE FOR ALL CITY BOOK / GOV GAAP GUIDE 2011 EXPRESS MAIL COURIER SERVICES CONSULTING SERVICES FY 11 CITY AUDIT MOP# 45704. OFFICE SUPPLIES/ SEC 8 End Date Check Date 11/29/2010 12/8/2010 CHK NO DATE AMOUNT 239520 12/14/10 42,011.91 239521 12/14/10 140.00 239522 12/14/10 98.98 239523 12/14/10 33.86 239524 12/14/10 1,909.75 239525 12/14/10 182.75 239526 12/14/10 82.16 239527 12/14/10 24.88 239528 12/14/10 1,701.11 239529 12/14/10 62.06 239537 12/14/10 6,440.91 239540 12/14/10 27,752.63 239553 12/14/10 51.35 239573 12/14/10 -3.83 239579 12114/ 10 104.75 239580 12/14/10 18.00 239583 12/14/10 3,512.00 239586 12/14/10 65.21 239607 12/14/10 131.64 239613 12/14/10 412.50 239640 12/14/10 6,250.00 239661 12/14/10 89.88 239673 12/14/10 32.48 239680 12/14/10 339.45 239696 12/14/10 136.65 239704 12/14/10 20.94 239707 12/14/10 7,500.00 239714 12/14/10 4,000.00 239722 12/14/10 23.64 AIP Total $ 103,125.66 88,998.41 GRAND TOTAL $ 192,124.07 ETING DATE: CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION COUNCIL AGENDA STATEMENT January 25, 2011 AGENDA ITEM NO. $1 ITEM TITLE: Resolution of the Community Development of the City of National City: in recognition of concessions made by Executive and Management employee groups in the form of a full eight percent employee paid contribution to retirement, a two tiered retirement formula and a vacation accrual cap of three times the accrual rate a resolution authorizing a one-time performance and retention incentive payment of three percent to eligible employees in the Executive and Management groups (excepting the City Attorney) in lieu of increases in base salary, and approving a transfer of $18,923 from the Tax Increment Fund to the Personnel Compensation Fund for said payment. PREPARED BY: Chris Zapata DEPARTMENT: City Manager PHONE: 336-4240 APPROVED BY: EXPLANATION: See attached. FINANCIAL STATEMENT: APPROVED: V�^^ Finance ACCOUNT NO. 511-409-000-099-0000 and 212-00000-3999 APPROVED: MIS Establish appropriations in the amount of 18,923 from tax increment undesignated fund balance and appropriations in the personnel compensation fund in the amount of 18,923. Transfer said funds from the Tax Increment Fund to the Personnel Compensation Fund. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Approve the resolution BOARD / COMMISSION RECOMMENDATION: N/A TACHMENTS: �aff Report CITY OF NATIONAL CITY MEMORANDUM DATE: January 25, 2011 TO: Honorable Chairman and Commissioners FROM: Chris Zapata, City Manager SUBJECT: Staff Report: Resolution of the Community Development of the City of National City: in recognition of concessions made by Executive and Management employee groups in the form of a full eight percent employee paid contribution to retirement, a two tiered retirement formula and a vacation accrual cap of three times the accrual rate a resolution authorizing a one-time performance and retention incentive payment of three percent to eligible employees in the Executive and Management groups (excepting the City Attorney) in lieu of increases in base salary, and approving a transfer of $18,923 from the Tax Increment Fund to the Personnel Compensation Fund for said payment. In recognition and support of the City's efforts to control on -going expenses related to employee salaries and benefits, employees serving in the Executive and Management groups agreed to make employee contributions to the Public Employees Retirement System (PERS) and to forego salary increases, with one salary increase granted over a ten (10) year period. Given the City's fiscal constraints, staffing levels have been reduced, and programs and departments have been consolidated. Throughout, executives and managers have continued to provide a high level of service to the residents of National City while striving to create efficiencies, achieve cost savings and generate new sources of revenue. In keeping with these principles and practices, salaries for these two groups have held relatively constant. Since calendar year 2002, employees of these two groups have received one cost of living adjustment, with a commitment to no additional salary increases over a ten year period. In addition to salary freezes, other concessions made by the Executive and Management groups include the following: • The 34 employees comprising the Executive and Management groups contribute six percent (6%) and five percent (5%), respectively of the employee contribution to PERS, totaling savings of $180,000. annually. Honorable Chairman and Commissioners Staff Report: Resolution to Authorize a One -Time Stipend for Executives and Managers January 25, 2011 Page 2 • On July 1, 2011, the percentage will increase to eight percent (8%), which is the full employee contribution as allowed under PERS. As such, these will be the first two groups, along with the elected officials to reach the full employee contribution. In total, the Executive and Manager contributions to PERS will result in on -going savings of more than $260,000 ($180,000 in fiscal year 2010/2011 and an additional $80,500 in fiscal year 2011/2012, rounded). • On January 11, 2011, the City Council took action to create a second tier retirement formula for miscellaneous employees, including Executives and Managers. Under the second tier, employee hired into the City on or after the change is effected will receive a retirement benefit of 2% @ 60, instead of the current 3% @ 60. With that, new Executives and Managers will pay the full eight percent (8%) retirement contribution and receive a lesser retirement benefit. • As a next step, a vacation accrual cap will be established for members of the Executive group. All other employee groups have vacation leave accrual caps, including the Management group. Vacation accrual caps serve to control the City's unfunded liability. Vacation time can be cashed out periodically each year and/or cashed out at separation. Vacation may be accrued at one rate of pay and, by the time the employee cashes it out, it may have increased in value as it is cashed out at the employee's current rate of pay. The accrual caps limit the City's fiscal exposure. The Executive group cap will be equal to three times the accrual rate or 360 hours in the first ten years of employment and 480 hours after ten years. Recommendation: In light of the above, the City Manager requests City Council approval of a two percent (2%) stipend for 2011 and a one percent (1%) stipend for 2012, for a total three percent (3%) one time stipend for an eighteen month period, effective immediately for members of the Executive and Management groups, excepting the City Attorney. Stipends have been used by the City of National City as an effective means of recognizing and retaining personnel without creating on- going fiscal obligations for the City. RESOLUTION 2011 — RESOLUTION OF THE RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY (CDC) IN RECOGNITION OF CONCESSIONS MADE BY EXECUTIVE AND MANAGEMENT EMPLOYEE GROUPS IN THE FORM OF A FULL 8% EMPLOYEE PAID CONTRIBUTION TO RETIREMENT, A TWO -TIERED RETIREMENT FORMULA AND A VACATION ACCRUAL CAP OF THREE TIMES THE ACCRUAL RATE, A RESOLUTION AUTHORIZING A ONE-TIME PERFORMANCE AND RETENTION INCENTIVE PAYMENT OF 3% FOR ELIGIBLE EMPLOYEES IN THE EXECUTIVE AND MANAGEMENT GROUPS (EXCEPT THE CDC'S GENERAL COUNSEL) IN LIEU OF INCREASES IN BASE SALARY, AND APPROVING THE TRANSFER OF $18,923 FROM THE TAX INCREMENT FUND TO THE PERSONNEL COMPENSATION FUND FOR SAID PAYMENT WHEREAS, in recognition and support of the Community Development Commission of the City of National City's (CDC's) efforts to control on -going expenses related to employee salaries and benefits, employees serving in the Executive and Management groups agreed to make employee contributions to the Public Employees Retirement System (PERS) and to forego salary increases, with one salary increase granted over a ten year period; and WHEREAS, on July 1, 2011, the percentage of the employee contribution to PERS for the executive and management groups will increase to 8%, which is the full employee contribution as allowed under PERS; and WHEREAS, given fiscal constraints, staffing levels have been reduced, and programs and departments have been consolidated. Throughout, executives and managers have continued to provide a high level of service to the residents of National City while striving to create efficiencies, achieve cost savings, and generate new sources of revenue; and WHEREAS, since calendar year 2002, employees of these two groups have received one cost of living adjustment with a commitment to no additional salary increase over a ten year period; and WHEREAS, a one-time performance and incentive payment of 3% is requested in recognition of the efforts of the employees represented by the Executive and Management group, excepting the CDC's General Counsel; and WHEREAS, a transfer of funds in the amount of $18,923 from the Tax Increment Fund to the Personnel Compensation Fund is necessary to fund said payment. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of the City of National City hereby authorizes the following transfer of funds: FROM: TO: Account No. 511-409-000-099-0000 Tax Increment Fund Account No. 212-00000-3999 Personnel Compensation Fund Resolution No. 2011 — Page 2 TOTAL AMOUNT: $18,923 PURPOSE: To fund a one-time performance and retention incentive payment to eligible employees of the Executive and Management Employee Groups. BE IT FURTHER RESOLVED that a one-time performance and retention incentive payment is hereby granted to eligible employees in the Executive and Management Groups, as set forth in the attached Exhibit "A". PASSED and ADOPTED this 25th day of January, 2011. Ron Morrison, Chairman ATTEST: Brad Raulston, Secretary APPROVED AS TO FORM: Claudia G. Silva General Council, CDC :TING DATE: CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION COUNCIL AGENDA STATEMENT January 25, 2011 AGENDA ITEM NO. 22 ITEM TITLE: Community Development Commission of the City of National City's Financial Statements and Supplemental Information for the Fiscal Year Ended June 30, 2010 PREPARED BY: Jeanette Ladrida, PHONE: 619-336-4331'. DEPARTMENT: APPROVED BY: EXPLANATION: Transmitted herewith is the Community Development Commission of the City of National City's Financial Statements and Supplemental Information for the fiscal year ended June 30, 2010 prepared by our auditors, Mayer Hoffman McCann, P.C. The auditors have conducted their examination of the financial statements in accordance with generally accepted auditing standards and expressed a clean opinion of those statements. The audit was completed and posted on the City's website January 2011. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Accept and File BOARD / COMMISSION RECOMMENDATION: N/A 1ACHMENTS: rinancial Statements and Supplemental Information for the fiscal year ended June 30, 2010 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Financial Statements and Supplementary Information Year ended June 30, 2010 COMMUNITY DEVELOPMENT COMMISSION OF "I'HE CITY OF NATIONAL CITY Financial Statements and Supplementary Infoiniation Year ended June 30, 2010 TABLE OF CON TENTS Page Independent Auditors' Report 1 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Assets 3 Statement of Activities 4 Fund Financial Statements: Governmental Funds: Balance Sheet 6 Reconciliation of Balance Sheet of Governmental Funds to the Government -Wide Statement of Net Assets 9 Statement of Revenues, Expenditures and Changes in Fund Balances 10 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government -Wide Statement of Activities 12 Enterprise Funds: Statement of Net Assets 13 Statement of Revenues, Expenses and Changes in Net Assets 14 Statement of Cash Flows 15 Notes to the Basic Financial Statements 16 Required Supplementary Information: Notes to the Required Supplementary Information 45 Schedule of Revenues, Expenditures and Changes in Fund Balance -- Budget and Actual — Special Revenue Funds: Community Development Block Grant 46 Section 8 Housing Assistance 47 HUD Program Income 48 HOME Program 49 Low and Moderate Income Housing Program 50 COMMUNITY DEVELOPMENT COMMISSION OF TIIE CITY OF NATIONAL CITY Financial Statements and Supplementary Information Year ended June 30, 2010 TABLE OF CONTENTS, (CONTINUED) Page Supplementary Schedules: Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Redevelopment Debt Service Fund 52 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Redevelopment Capital Projects Fund 53 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 55 Schedule of Findings and Recommendations 57 II Mayer Hoffman McCann P.C. An Independent CPA Firm 2301 Dupont Drive, Suite 200 Irvine, California 92612 949-474-2020 ph 949-263-5520 fx www.mhrn-pc.com Board of Directors Community Development Commission of the City of National City National City, California INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities, the business -type activities, and each major fund of the Community Development Commission of the City of National City (the "Commission"), a component unit of the City of National City, California as of and for the year ended June 30, 2010, which collectively comprise the Commission's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the management of the Community Development Commission of the City of National City. Our responsibility is to express an opinion on these component unit financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the component unit financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, and each major fund financial of the Community Development Commission of the City of National City at June 30, 2010, and the respective changes in financial position and cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America. The Commission has not presented management's discussion and analysis that the Government Accounting Standards Board has determined is necessary to supplement, although not required to be part of, the basic financial statements. The information identified in the accompanying table of contents as required supplementary information is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. 1 Board of Directors Community Development Commission of the City of National City National City, California Page Two Our audit was conducted for the purposes of forming opinions on the financial statements that collectively comprise the Commission's basic financial statements. The individual budgetary comparison schedules for Debt Service and Capital Projects Funds are presented for the purpose of additional analysis and are not a required part of the basic financial statements. These supplementary schedules have been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued a report dated December 23, 2010 on our consideration of the Commission's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Irvine, California December 23, 2010 2 (This page intentionally left blank) COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Statement of Net Assets June 30, 2010 Governmental Business -type Activities Activities Total Assets Cash and investments (note 5) $ 16,650,341 84,989 16,735.330 Cash and investments with fiscal agent (note 5) 3,806,938 1,717,538 5,524,476 Receivables: Accounts 2,907,247 490 2,907,737 Interest 27,870 27,870 Taxes 256,624 256,624 Loans (note 7) 14,010,599 I4,010,599 First time homebuyers loans (note 7) 2,066,093 - 2,066,093 Due from other governments 730,497 730,497 Prepaid expense - 157,259 157,259 Land held for resale 10,267,509 10,267,509 Capital assets (note 6): Nondepreciable capital assets 2,050,000 528,382 2,578,382 Depreciable capital assets, net of accumulated depreciation 581,666 7,101,527 7,683,193 Total assets 53,355,384 9,590,185 62,945,569 Liabilities Accounts payable and other liabilities 2,895,693 435,884 3,331,577 Accrued salaries and benefits 81,181 - 81,181 Accrued interest payable 141,471 - 141,471 Deposits 25,000 - 25,000 Due to City of National City 22,348 22,348 Noncurrent liabilities (note 8): Due within one year 2,770,000 204,777 2,974,777 Due in more than one year 41,174,966 2,276,885 43,451,851 Total liabilities 47,110,659 2,917,546 50,028,205 Net Assets Invested in capital assets, net of related debt 2,631,666 5,148,247 7,779,913 Restricted for low and moderate housing 12,874,593 1,524,392 14,398,985 Unrestricted net assets (deficit) (9,261,534) (9,261,534) Total net assets $ 6,244,725 6,672,639 12,917,364 See accompanying notes to basic financial statements. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Statement of Activities Year Ended June 30, 2010 Governmental activities: Low and moderate housing Community development Interest on long-term debt and related charges Program Revenues Operating Capital Total Charges for Contributions Contributions Program Expenses Services and Grants and Grants Revenues $ 670,912 - - 16,114,359 11,313,591 11,313,591 2,116,754 Total governmental activities 18,902,025 Business -type activities: Low and moderate housing Interest on long-term debt and related charges Total business -type activities Total primary government 11,313,591 - 11,313,591 2,673,093 2,063,715 - 2,063,715 180,982 2,854,075 2,063,715 - - 2,063,715 $ 21,756,100 2,063,715 11,313,591 General revenues: Tax increment, net Investment income Other Transfers to City, net 13,377,306 Total general revenues and transfers Change in net assets Net assets at beginning of year, as restated (note 13) Net assets at end of year See accompanying notes to the basic financial statements. 4 Net (Expense) Revenue and Changes in Net Assets Primary Government Governmental Business -type Activities Activities Total (670,912) - (670,912) (4,800,768) - (4,800,768) (2,116,754) (2,116,754) (7,588,434) (7,588,434) (609,378) (609,378) (180,982) (180,982) (790,360) (790,360) (7,588,434) (790,360) (8,378,794) 6,584,440 - 6,584,440 498,866 6,943 505,809 368,722 - 368,722 (472,798) - (472,798) 6,979,230 6,943 6,986,173 (609,204) (783,417) (1,392,621) 6,853,929 7,456,056 14,309,985 $ 6,244,725 6,672,639 12,917,364 5 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Balance Sheet - Governmental Funds June 30, 2010 Special Revenue Funds Community Section 8 HUD Development Housing Program HOME Block Grant Assistance Income Program Assets Cash and investments (note 5) $ 1,142,448 415,510 2,160,158 Cash with fiscal agent (note 5) 1,094,028 Receivables: Accounts 290,563 45,616 - Interest - 2,705 3,635 Taxes - - - - Loans - 223,349 1,185,985 First time homebuyers loans - 1,61 1,117 Due from other funds (note 4) 106 124,561 - Due from other governments 582,390 - 145,311 Land held for resale - 875,000 Total assets Liabilities and Fund Balances Liabilities: Accounts payable Accrued payroll Due to other funds (note 4) Due to City of National City Deposits Deferred revenue Total liabilities $ 872,953 1,188,170 1,860,153 5,981,206 $ 339,343 71,636 57,021 115,768 2,416 21,615 124,561 15,884 22,348 - 108,737 - 1,647,039 597,405 109,135 1,999 57,021 1,764,806 Fund balances: Reserved for: Continuing appropriations - 16,896 25,157 - Contingencies - - - Loans receivable - - 223,349 - First time homebuyer loans receivable - - I,150,063 Land held for resale - - - 875,000 Program 971,837 - Debt service - - 1,094,028 Unreserved: Llndesignated 275,548 90,302 460,598 2,191,337 Total fund balances 275,548 1,079,035 1,803,132 4,216,400 Total liabilities and fund balances $ 872,953 1,188,170 1,860,153 5,981,206 See accompanying notes to the basic financial statements. 6 Low and Debt Service Fund Moderate Income Redevelopment Housing Program Fund 7,598,805 3,635,561 2,677,291 12,544 6,117 49,691 198,766 12,371,265 386,689 360,000 20,778,994 6,517,735 12,346 1,746,085 2,790 7,889,265 Capital Projects Fund Redevelopment Fund 1,697,859 35,619 2,571,068 2,869 8,167 230,000 68,287 15,884 2,796 9,032,509 I3,665,058 Totals Governmental Funds 16,650,341 3,806,938 2,907,247 27,870 256,624 14,0I0,599 2,066,093 140,551 730,497 10,267,509 50,864,269 553,494 2,895,693 52,361 81,181 106 140,551 22,348 25,000 25,000 62,500 9,707,541 7,904,401 1,746,085 693,461 12,872,314 150,565 - 4,482,000 386,689 360,000 7,495,339 4,771,650 12,874,593 4,771,650 20,778,994 6,517,735 7 1,265,867 500,000 230,000 68,287 9,032,509 1,874,934 12,971,597 13,665,058 1,45 8,485 500,000 4,93 5,349 1,605,039 10,267,509 971,837 5,865,678 12,388,058 37,991,955 50,864,269 (This page intentionally left blank) 8 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Reconciliation of the Balance Sheet of Governmental Funds to the Government -Wide Statement of Net Assets June 30, 2010 Fund balances of governmental funds $ 37,991,955 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets, net of depreciation, have not been included as financial resources in governmental fund activity. Capital assets Accumulated depreciation Long term debt and compensated absences have not been included in the governmental funds: 4,581,163 (1,949,497) Tax allocation bonds payable (37,455,000) I -IUD 108 Bond 2003 A (5,750,000) Advances from City (739,966) Certain revenues were not available to pay for current -period expenditures and, therefore, were deferred in the governmental funds. 9,707,541 Accrued interest payable for the current portion of interest due on bonds payable has not been reported in the governmental fiords. (141,471) Net assets (deficit) of governmental activities $ 6,244,725 See accompanying notes to the basic financial statements. 9 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Year Ended June 30, 2010 Revenues: Property taxes Subventions and grants Interest income Other income Total revenues Special Revenue Funds Community Section 8 HUD Development Housing Program HOME Block Grant Assistance Income Program $ 817,696 9,704,442 - 631,387 - 18,565 79,788 75 396 817,696 9,704,517 18,961 711,175 Expenditures: Current: Personnel services 79,332 861,884 - 39,905 Special services 3,069 15,902 - 4,778 Community development 218,991 8,540,361 86,924 240,445 Capital outlay 253,729 - Culture and leisure 76,676 - Debt Service: Principal payments 225,000 Interest and fiscal charges 170,776 137,786 Total expenditures 1,027,573 9,418,147 224,710 285,128 Excess (deficiency) of revenues over (under) expenditures (209,877) 286,370 (205,749) 426,047 Other financing sources (uses): Transfers to the City - - (200,131) - Transfers from the City 394,000 Transfers in (note 3) 128,489 608,152 Transfers out (note 3) - - (1,056,370) Proceeds of advance from City Total other financing sources (uses) 522,489 608,152 (1,256,501) Net change in fund balance 312,612 894,522 (1,462,250) 426,047 Fund balance (deficit), beginning of year, as restated (note 11) (37,064) 184,513 3,265,382 3,790,353 Fund balance, end of year $ 275,548 1,079,035 1,803,132 4,216,400 See accompanying notes to the basic financial statements. 10 Debt Capital Service Projects Low and Fund Fund Total Moderate Income Redevelopment Redevelopment Governmental Housing Program Fund Fund Funds 2,796,072 11,184,289 - 13,980,361 - - 160,066 11,313,591 264,663 33,746 102,104 498,866 - 368,251 368,722 3,060,735 11,218,035 630,421 26,161,540 97,081 - 2,368,905 3,447,107 10,089 159,752 193,590 573,831 7,395,921 217,317 17,273,790 2,034,918 2,288,647 76,676 2,225,000 2,450,000 1,796,282 - 2,104,844 670,912 11,427,292 4,780,892 27,834,654 2,389,823 (209,257) (4,150,471) (1,673,114) (666,667) (866,798) 394,000 927,881 826,093 - 2,490,615 (1,434,245) (2,490,615) 739,966 739,966 (506,364) 826,093 73,299 267,168 1,883,459 616,836 (4,077,172) (1,405,946) 10,991,134 4,154,8I4 17,048,769 39,397,901 12,874,593 4,771,650 12,971,597 37,991,955 11 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government -Wide Statements of Activities For the Year Ended June 30, 2010 Changes in fund balances of governmental funds $ (1,405,946) Amounts reported for governmental activities in the statement of activities differs from the amounts reported in the statement of activities because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. Depreciation expense (81,667) Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of nct assets. 2,450,000 Proceeds from advances from the City of National City is reported as long term liabilities in governmental funds. The advance increases liabilities in the statement of net assets, but does not result in an increase in net assets in (739,966) The statement of activities includes accrued interest on long-term debt. This is the net change in interest payable expense for the current period. (11,910) Revenues in the government -wide statement of activities that did not provide current financial resources were not reported as revenues in the governmental funds. (819,715) Change in net assets of governmental activities $ (609,204) See accompanying notes to the basic financial statements. 12 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Statement of Net Assets - Enterprise Funds June 30, 20I0 Kimball Morgan Towers Towers Assets Total Current assets: Cash and investments (notes 2 and 5) $ 75,886 9,103 84,989 Accounts receivable 490 - 490 Prepaid expense 76,979 80,280 157,259 Total current assets 153,355 89,383 242,738 Restricted cash and investments with fiscal agent (notes 2 and 5) 1,044,470 673,068 1,717,538 Noncurrent assets: Capital assets (note 6): Nondepreciable assets 315,814 212,568 528,382 Depreciable capital assets, net of accumulated depreciation 4,565,917 2,535,610 7,101,527 Total capital assets 4,881,731 2,748,178 7,629,909 Total assets 6,079,556 3,510,629 9,590,185 Liabilities Current liabilities: Accounts payable and accrued liabilities 172,028 174,981 347,009 Notes payable -due within one year (note 7) - 204,777 204,777 Total current liabilities 172,028 379,758 551,786 Noncurrent liabilities: Tenant security deposit liability Note Payable -due in more than one year (note 7) Total noncurrent liabilities Total liabilities 43,977 44,898 88,875 2,276,885 2,276,885 43,977 2,321,783 2,365,760 216,005 2,701,541 2,917,546 Net Assets Invested in capital assets, net of related debt 4,881,731 266,516 5,148,247 Restricted for: Housing 981,820 542,572 1,524,392 Total net assets $ 5,863,551 809,088 6,672,639 See accompanying notes to the basic financial statements. 13 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Statement of Revenues, Expenses and Changes in Net Assets - Enterprise Funds Year ended June 30, 2010 Kimball Morgan Towers Towers Total Operating revenues: Rental income $ 880,569 1,168,845 2,049,414 Other 7,259 7,042 14,30] Total operating revenues 887,828 1,175,887 2,063,715 Operating expenses: Maintenance and operation 1,207,062 1,037,683 2,244,745 Depreciation 187,350 240,998 428,348 Total operating expenses 1,394,412 1,278,681 2,673,093 Operating income (loss) (506,584) (102,794) (609,378) Nonoperating revenues (expenses): Interest income Interest expense 3,847 3,096 6,943 (180,982) (180,982) Total nonoperating revenues (expense) 3,847 (177,886) (174,039) Change in net assets (502,737) (280,680) (783,417) Net assets at beginning of year 6,366,288 1,089,768 7,456,056 Net assets at end of year $ 5,863,551 809,088 6,672,639 See accompanying notes to the basic financial statements. 14 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Statement of Cash Flows - Enterprise Funds Year ended June 30, 2010 Kimball Morgan Towers Towers Total Cash flows from operating activities: Cash received from customers and government agencies $ 884,039 1,174,031 2,058,070 Cash payments to employees for services - (176,029) (176,029) Cash payments to suppliers for goods and services (1,188,477) (771,250) (1,959,727) Cash received for other operating activities 7,259 7,042 14,301 Net cash provided by (used for) operating activities (297,179) 233,794 (63,385) Cash flows from investing activities: Purchase of property plant and equipment (30,417) - (30,417) Net cash provided by (used for) investing activities (30,417) (30,417) Cash flows from financing activities: Principal payments on note payable - (191,924) (191,924) Interest income 3,847 3,796 7,643 Interest expense - (180,982) (180,982) Net cash provided by (used for) financing activities 3,847 (369,110) (365,263) Increase (decrease) in cash and investments (323,749) (135,316) (459,065) Cash and investments (including cash and investments with fiscal agent): Beginning of year 1,444,105 817,487 2,261,592 End of year 1,120,356 682,171 1,802,527 Reconciliation of operating income (loss) to net cash provided by (used for) operating activities: Operating income (loss) (506,584) (102,794) (609,378) Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation 187,350 240,998 428,348 (Increase) decrease in accounts receivable 2,577 5,186 7,763 (Increase) decrease in prepaid expenses (29,868) 845 (29,023) Increase (decrease) in accounts payable and accrued liabilities 49,346 _ 89,559 138,905 Total adjustments 209,405 336,583 545,993 Net cash provided by (used for) operating activities $ (297,179) 233,794 (63,385) Noncash investing, capital and financing activities There were no significant noncash investing, capital or financing activities for the year ended June 30, 2010. See accompanying notes to basic financial statements. 15 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements Year ended June 30, 2010 (1) Summary of Significant Accounting Policies The basic financial statements of the Community Development Commission of the City of National City (the "Commission"), a component unit of the City of National City (the "City"), have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the significant accounting policies of the Commission. (a) Description of the Reporting Entity The Community Development Commission of the City of National City (the "Commission") was established in April 1967 pursuant to provisions of the California Health and Safety Code. The Commission is subject to the oversight responsibility of the City Council of the City of National City (the "City") and, accordingly, is a component unit of the City, although it is a separate legal entity. The Commission's primary purpose is to eliminate blighted areas within the City by encouraging development of residential, commercial, industrial, recreational and public facilities and to assist neighborhood redevelopment through residential property improvement loans and housing assistance payments to low and moderate income earners. The Commission accounts for its financial position and operations in accordance with generally accepted accounting principles in the United States applicable to governmental units. (b) Basis of Accounting and Measurement Focus The basic financial statements of the Commission are composed of the following: • Government -wide financial statements • Fund financial statements • Notes to the basic financial statements Government — Wide Financial Statements The Commission's government -wide financial statements include a Statement of Net Assets and a Statement of Activities. These statements present summaries of governmental activities for the Commission. 16 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus, (Continued) Government — Wide Financial Statements, (Continued) Government -wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Accordingly, all of the Commission's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term Iiabilities, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred. Certain types of transactions are reported as program revenues for the Commission in three categories: > Charges for services ➢ Operating grants and contributions > Capital grants and contributions Interfimd transfers have been eliminated as prescribed by GASB Statement No. 34 in regards to interfund activities. Fund Financial Statements The underlying accounting system of the Commission is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the Commission's governmental and proprietary funds are presented after the government -wide financial statements. An accompanying schedule is presented for the governmental funds to reconcile and explain the differences in fund balance as presented in these statements to the net assets presented in the government -wide financial statements. The Commission has presented all major funds that met the applicable criteria. 17 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus, (Continued) Governmental Funds In the fiord financial statements, governmental funds are presented using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The Commission uses a sixty day availability period. The primary revenue sources, which have been treated as susceptible to accrual by the Commission, are property tax, special assessments, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Deferred revenues arise when potential revenues do not meet both the measurable and available criteria for recognition in the current period. Deferred revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the government has a legal claim to the resources, the deferred revenue is removed and revenue is recognized. In the find financial statements, governmental fluids are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of available spendable resources. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing source rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. The Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is provided to explain the differences created by the integrated approach of the GASB Statement No. 34. 18 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (I) Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus, (Continued) Proprietary Funds The Commission's enterprise funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund fmancial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net assets. Operating revenues and expenses generally result from providing services, and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Th e principal operating revenues of Kimball Towers and Morgan Towers are charges to tenants for housing low and moderate income seniors, which is subsidized with Federal government funds under a Section 8 contract with the U.S. Department of Housing and Urban Development. Operating expenses for the proprietary funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenues and expenses. Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the proprietary fund financial statements, rather than as an other financing source. Amounts paid to reduce long- term indebtedness of the proprietary funds are reported as a reduction of the related liability, rather than as an expenditure. Major Funds The Commission reports the following major governmental funds: Community Development Block Grant — To account for activities related to the annual grant from the Department of Housing and Urban Development to assist in developing viable urban community by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low and moderate income persons. 19 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) [l} Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus, (Continued) Major Funds, (Continued) Section 8 Housing Assistance — To provide rental assistance to low income families by subsidizing a portion of the rent directly to landlords on behalf of low income households. HUD Program Income — To provide for the funding of Community Development Block Grant program activities as approved by the City Council utilizing HUD program income. HOME Program — To account for activities related to the annual grant from the Department of Housing and Urban Development to administer programs designed to provide decent affordable housing, expand capacity of nonprofit housing providers, and to leverage private sector participation. Low and Moderate Income Housing Program — To account for the tax increment which is required to be set aside under Section 33334.2 of the California Health and Safety Code to increase, improve or preserve the community's supply of low and moderate income housing. Redevelopment Debt Service Fund — To account for the accumulation of resources - for the payment of principal, interest, and related costs of the Commission's long- term debt. Redevelopment Capital Projects Fund — To account for the administrative expenditures of the Commission and redevelopment capital projects. In addition, the Commission also reports the following major proprietary funds: Kimball Towers — To account for the activities relating to the operations of Kimball Tower which use is restricted to housing low and moderate income seniors. Morgan Towers — To account for the activities relating to the operations of Morgan Tower which use is restricted to housing low and moderate income seniors. 20 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (I) Summary of Significant Accounting Policies, (Continued) (c) Cash and Investments The Commission's investment policy authorizes deposits in any of the approved investments contained in the California Government Code Sections 53600 et seq. During the year ended June 30, 2010, the Commission complied with these policies. Investment income earned on unrestricted cash is allocated to the Commission's various funds as required by grant/loan agreements or at the Board's discretion. The Commission pools its available cash with the City for investment purposes. The City considers pooled cash and investment amounts, with original maturities of three months or less, to be cash equivalents. Cash and cash equivalents are combined with investments and displayed as cash and investments. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. The Commission participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the pool funds in Structured Notes and Asset -backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset -backed Securities are subject to market risk as to change in interest rates. (d) Land Held for Resale Land held for resale is recorded at the lower of cost or, upon entering into a contract for sale, the estimated net realizable value. Fund balances are reserved in amounts equal to the carrying value of land and buildings held for resale, because such assets are not available to finance the Commission's current operations. (e) Use of Restricted/Net Assets When an expense is incurred for purposes for which both restricted net assets are available, the Commission's policy is to apply restricted net assets first. 21 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (f) Interfund Transactions Activity between funds that are representative of lending/ borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). (g) Interest Payable In the government -wide financial statements, interest payable of long-term debt is recognized as the liability is incurred for governmental fund types. In the fund financial statements, governmental fund types do not recognize the interest payable when the liability is incurred. Rather, interest expense is simply recorded when it is due or paid. (h) Long -Term Liabilities Government -Wide Financial Statements — Long-term debt and other long-term obligations are reported as Iiabilities in the primary government's governmental activity. Fund Financial Statements — The fund financial statements do not present long- term debt but arc shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets. (i) Net Assets In the government -wide financial statements, net assets are classified in the following categories: Invested in Capital Assets, net of Related Debt — This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. Restricted Net Assets — This amount is restricted by external creditors, grantors, contributors, laws or regulations of other governments. Unrestricted Net Assets — This amount is all net assets that do not meet the definition of "invested in capital assets, net of related debt" or "restricted net assets." 22 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL, CITY Notes to Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (j) Fund Balances — Reservations and Designations In the fund financial statements, governmental funds report reservations of fund balances for amounts that are not available for appropriation or are legally restricted by outside parties for use of a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. (k) Property_Tax Increment One of the Commission's primary sources of revenue is from property tax increments. The assessed valuation of all property within the Downtown Redevelopment Project area was determined on the date of adoption of the Redevelopment Plan. Property taxes related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are allocated to the Commission; all taxes on the "frozen" assessed valuation of the property are allocated to the City and unrelated taxing agencies. (1) Use of Estimates The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosures of contingent assets and Liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions. (2) Enterprise Fund Restricted Cash In accordance with Department of Housing and Urban Development (HUD) requirements, the Morgan Towers Enterprise Fund maintains the following restricted cash accounts: Reserve for replacements of $428,091 represents a monthly deposit of $3,127, less current use for replacement, plus income earned thereon. The balance of this reserve will be used for the future replacement of property with I IUD's approval. Residual receipts reserve of $226,604 is an accumulation of surplus cash as calculated by HUD's Computation of Surplus Cash, Distributions and Residual Receipts, which can be expended only with HiJD's approval. Reserve for MIP and insurance impounds of $ 1 0,498 and $7,875, respectively, totaling $18,373, which represents amounts held for the future payment of property and mortgage insurance. 23 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (2) Enterprise Fund Restricted Cash, (Continued) Additionally, the Kimball Towers Enterprise Fund maintains the following HUD restricted cash accounts: Residual receipts reserve of $304,710 is an accumulation of surplus cash as calculated by HUD's Computation of Surplus Cash, Distributions and Residual Receipts, which can be expended only with HUD's approval. Other restricted cash and investments totaling $739,760 are included in the accompanying basic financial statements. (3) Transfers Int Hansfers Out The following schedule summarizes the Commission's transfer activity: Transfers In Transfers Out Amount Community Development Block Grant Fund HIJI) Program Income Special Revenue Fund $ 128,489 (a) Low and Moderate Income Housing Fund HUD Program Income Special Revenue Fund 927,881 (b) Section 8 Housing Assistance Special Revenue Fund Low and Moderate Income Housing Fund 608,152 (c) Redevelopment Debt Service Fund Low and Moderate Income Housing Fund 826,093 (d) Total $2.490.615 (a) Transfer for expenditure recovery. (b) Transfer for expenditure recovery as approved by Council resolution for the Casa Familiar acquisition and rehabilitation project. (c) Transfers for operating subsidy. (d) The Low and Moderate Income Housing Fund transferred $826,093 to the Redevelopment Debt Service Fund to fund a portion of the 1999 and 2005 Tax Allocation Bonds (18% of series A) debt service payments that related to low and moderate development. 24 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (4) Due From and To Other Funds Interfund receivable and payable balances at June 30, 20010 are as follows: Due from Other Funds Due to Other Funds Amount Section 8 Housing Fund Redevelopment Capital Projects Fund $ 106 HUD Program Income Community Development Block Grant 124,561 (a) Redevelopment Capital Projects Fund Section 8 Housing Fund 15,884 (h) Total $140 551 (a) To'liquidate deficit cash in Community Development Block Grant fund. (b) To temporarily advance the funding to the Section 8 housing program to cover anticipated HUD funding shortfall. (5) Cash and Investments Cash and investments as of June 30, 2010 are classified in the accompanying financial statements as follows: Statement of Net Assets: Cash and investments $16,735,330 Cash and investments with fiscal agent 5,524,476 Total cash and investments $22 259.806 Cash and investments as of June 30, 2010 consist of the following: Petty cash $ 150 Deposits with financial institutions 552,830 Investments 21,706,826 Total cash and investments $22,259,806 25 COMMTJNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (5) Cash and Investments, (Continued) Investments Authorized by the California Government Code and the Commission's Investment Policy The table below identifies the investment types that are authorized for the Commission by the California Government Code and the Commission's investment policy. The table also identifies certain provisions of the California Government Code (or the Commission's investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by fiscal agent that are governed by the provisions of debt agreements of the Commission, rather than the general provisions of the California Government Code or the Commission's investment policy. Investment Types Authorized by State Law Local Agency Bonds U.S. Treasury Obligations U.S. Agency Securities Banker's Acceptances Commercial Paper Negotiable Certificates of Deposit Repurchase Agreements Reverse Repurchase Agreements Medium -Term Notes Mutual Funds Money Market Mutual Funds Mortgage Pass -Through Securities County Pooled Investment Funds Local Agency Investment Fund (LAIF) JPA Pools (other investment pools) Authorized By Investment *Maximum Policy Maturity Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes 5 years 5 years 5 years 180 days 270 days 5 years 1 year 92 days 5 years N/A N/A 5 years N/A N/A N/A *Maximum Percentage Of Portfolio None None None 40% 25% 30% None 20% of base value 30% 15% 20% 20% None None None *Maximum Investment in One Issuer None None None 30% 10% None None None None 10% 10% None None None None * Based on state law requirements or investment policy requirements, whichever is more restrictive. 26 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (5) Cash and Investments, (Continued) Investments Authorized by Debt Agreements Investment of debt proceeds held by fiscal agent are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Commission's investment policy. The table below identifies the investment types that are generally authorized for investments held by fiscal agent. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk. Authorized Investment Type Maximum Maximum Maximum Percentage Investment Maturity Allowed in One Issuer U.S. Treasury Obligations None None None U.S. Agency Securities None None None Banker's Acceptances 360 days None None Commercial Paper 270 days None None Money Market Mutual Funds N/A None None Investment Contracts 30 years None None Certificates of Deposit None None None Repurchase Agreements None None None Mortgage Pass -Through Securities None None None State Bonds or Notes None None None Municipal Bonds or Notes None None None Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Commission manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. 27 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (5) Cash and Investments, (Continued) Information about the sensitivity of the fair values of the Commission's investments (including investments held by fiscal agent) to market interest rate fluctuations is provided by the following table that shows the distribution of the Commission's investments by maturity: Investment Type U.S. Agency Securities Local Agency Investment Fund (LAIF) 14,987,275 14,987,275 Money Market Funds 1,717,538 1,717,538 I1eld by Fiscal Agent: Money Market Funds Remaining Maturity (in Months) 12 Months 13 to 24 25 to 60 or Less Months Months Total Total $ 1,195,075 3,806,938 3,806,938 1,195,075 $21,706,826 20,511,751 - 1 195,075 Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the Commission's investment policy, or debt agreements, and the actual rating as of year end for each investment type. Investment Type U.S. Agency Securities Local Agency Investment Fund (LAIF) Money Market Funds Held by Fiscal Agent: Money Market Funds Minimum Legal Total Rating $ 1,195,075 AAA 14,987,275 N/A 1,717,538 N/A Ratings as of Year End Not AAA Rated 1,195,075 3,806,938 A 3.806,938 14,987,275 1,717,538 Total $21.706,826 5.002,013 16.704,813 28 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (5) Cash and Investments, (Continued) Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker -dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the Commission's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The Califomia Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure Commission deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. For investments identified herein as held by fiscal agent, the fiscal agent selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government. Investment in State Investment Pool The Commission is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the Commission's investment in this pool is reported in the accompanying financial statements at amounts based upon the Commission's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. 29 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (6) Capital Assets The following is a summary of capital assets for the year ended June 30, 2010: Balance at Balance at July 1, 2009 Additions Deletions June 30, 2009 Government Activities: Capital assets: Buildings and improvements $2,450,000 - 2,450,000 Machinery and equipment 81,163 - 81,163 Total cost of depreciable capital assets 2,531,163 - - 2,531,163 Less accumulated depreciation: Buildings and improvements (1,786,667) (81,667) (1,868,334) Machinery and equipment (81,163) - - (81,163) Total accumulated depreciation (1,867,830) (81,667) (1,949.497) Depreciable capital assets, net 663,333 (81,667) 581,666 Capital assets not depreciated: Land 2,050,000 - 2 050 000 Capital assets, net $2.713_333 (81 667) 2,631 666 Depreciation expense in governmental activities for capital assets for the year ended June 30, 2010 was $81,667 which was allocated to community development. 30 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (6) Capital Assets, (Continued) Balance at Balance at July 1, 2009 Additions Deletions June 30, 2010 Business -Type Activities: Depreciable assets: Buildings and improvements $15,654,166 30,418 - 15,684,584 Furniture and equipment 462,153 - 462,153 Total cost of depreciable assets 16,116,319 30,418 - 16,146,737 Less accumulated depreciation: Buildings and improvements (8,524,664) (413,500) - (8,938,164) Furniture and equipment (92,198) (14,848) (107,046) Total accumulated depreciation (8,616,862) (428,348) - (9,045.210) Depreciable capital assets, net 7,499,457 (410,421) - 7,101,527 Capital assets not depreciated: Land 5283$ - 528,382 Capital assets, net $ 8027 839 (397,93.0) - 7,629 909 Depreciation expense in business -type activities for capital assets for the year ended June 30, 2010 was $428,348 which was allocated to low and moderate housing. 31 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (7) Loans Receivable First time home buyer loans Outstanding at June 30, 2010 S 2,066,093 Loans Copper Hills Apartments, LP 8,057,792 Plaza Manor 500,558 Single -Family Housing Rehabilitation Loan Program 223,349 Young Trust 230,000 Casa Familiar 1,576,900 Plaza City 3,422,000 Subtotal 14,010,599 Total $16 076 692 Copper Hills Apartments, LP — CDC Residual Receipts Note dated February 19, 1999 disclosed a loan of $2,400,000 with 3% interest per annum for 55 years, funded by HOME and Low & Moderate Income Housing Funds. A second and junior to the CDC Residual Receipts Note was made on June 1, 1999 referred to as CDC Rehabilitation Note with 3% interest per annum for 55 years and funded by Low & Moderate Income Housing Fund. These loans were made to acquire, develop, rehabilitate and operate the multi- family apartments located at "Q" Avenue in National City, Ca. This project will contain 134 apartment dwelling units following rehabilitation and renovation. Plaza Manor — CDC of the City of National City entered into a loan agreement with Plaza Manor Preservation, LP on December 18, 2001 in the amount of $500,000 with 3% compound interest per annum and shall end on April 15, 2032. The borrower has acquired a property located in the City of National City with aid of the said loan and with the intention to operate a 372 unit project as a very low and low income housing project. Funding sources for this loan were HOME (48%) and Low & Moderate Income Housing Funds (52%). Single -Family Housing Rehabilitation Loan Program — Prior to 2005, the CDC of the City of National City provided loans to eligible low-income homeowners to make repairs and basic home improvements that maintain the quality of their housing and created a positive effect in the surrounding neighborhood. Loans were offered at below -market interest rates utilizing federal HOME Investment Partnerships Program funds. 32 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (7) Loans Receivable, (Continued) Young Trust — A Promissory Note secured by Deed of Trust was made on December 17, 2003 between CDC of the City of National City and Robert Dale Young and Deborah Mae Young in the amount of $230,000 with interest of 5% per year. This loan is in reference to the California Community Redevelopment Law, where CDC appeals to redevelop a portion of the National City Redevelopment project, which is bounded by the location at Harrison Avenue, National City. Casa Familiar — CDC of the City of National City entered in an Acquisition, Rehabilitation and Permanent Loan Agreement with Casa Familiar, Inc. on October 1, 2009 amounting to $516,900 with 2% per annum from the date of the disbursement. Interest shall accrue, however, no payments shall be due under the CDC Note until July 1, 2011, and annually on July 1 of each year during the term of the CDC note, and Borrower shall make payments to the CDC in the manner provided in the CDC note until 55 years. This loan was intended to acquire, rehabilitate and permanently finance the property Located at 304 East Fifth Street, National City, CA and is comprised entirely of HUD HOME funds all of which shall be used for HOME eligible purposes. Plaza City — CDC of the City of National City entered into a Loan Agreement with Plaza City Apartments, LP on November 1, 2005 in the amount of $2,700,000 with 3% interest per annum for 55 years. It was amended per Resolution No. 2006-202 dated September 19, 2006 which increased the loan amount by $722,000 for a total of $3,422,000. This loan will be used by the borrower to pay the balance of the purchase price and additional costs relating to the acquisition, demolition and development of certain real property located at 1535 Plaza Blvd., National City, CA. 33 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (8) Long -Term Liabilities The following is a summary of changes in long-term liabilities for the year ended June 30, 2010: Balance Amounts Amount Due Balance July June 30, Due Within Beyond One 1 2009 Additions Deletions 2010 One Year Year Governmental Activities: Bonds payable: I999 Tax Allocation Bonds $4,210,000 - (120,000) 4,090,000 125,000 3,965,000 2004 Series Tax Allocation Bonds 4,885,000 - (265,000) 4,620,000 275,000 4,345,000 2005 Series A Tax Allocation Bonds 20,745,000 - (1,840,000) 18,905,000 2,125,000 16,780,000 2005 Series B Tax Allocation Bonds 9,840,000 - - 9,840,000 - 9,840,000 HUD 108 Bond 2003 A 5,975.000 - (225,000) ,79,000 245,000 5,505,000 Total bonds payable 45 655,000 _ - (2,450,000) 43205,000 2,770,000 40,435.000 Advance from City - 739,966 - 739,966 - 739.966 Total governmental activities 45.655,000 739,966 (2,450,000) 43,944,966 2 770,000 4274,966 Business -Type Activities: Notes Payable 2,673,585 - (191.923) 2,481,662 204,777 2,276,885 'l'otal business -type activities 2,673,585 - (191,923) 2,481,662 204,777 2,276.885 Total $48,328.585 12,641,923) 45 426,628 2.974.777 43 451 851 1999 Tax Allocation Bonds In June 1999, the Commission issued $5,050,000 in Tax Allocation Bonds for the Q Avenue Redevelopment project. The bonds consist of $1,085,000 in serial bonds which mature from 2000 to 2010 in amounts ranging from $45,000 to $125,000, and $1,425,000 in term bonds which mature in 2019, and $2,540,000 in term bonds which mature in 2029. Interest is payable semi-annually on February 1 and August 1, at interest rates ranging from 3.30% to 4.50% 34 .(8) COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) Long -Term Liabilities, (Continued) The annual debt service requirements for the 1999 Tax Allocation Bonds outstanding at June 30, 2010 are as follows: Fiscal Year Principal Interest Total 2011 $ 125,000 204,237 329,237 2012 130,000 198,175 328,175 2013 135,000 191,550 326,550 2014 145,000 184,550 329,550 2015 150,000 177,176 327,176 2016 155,000 169,550 324,550 2017 165,000 161,549 326,549 2018 175,000 153,050 328,050 2019 180,000 144,175 324,175 2020 190,000 134,925 324,925 2021 200,000 125,050 325,050 2022 210,000 114,543 324,543 2023 220,000 103,525 323,525 2024 235,000 91,866 326,866 2025 245,000 79,566 324,566 2026 260,000 66,625 326,625 2027 270,000 53,044 323,044 2028 285,000 38,822 323,822 2029 300,000 23,831 323,831 2030 315,000 8,072 323,072_ Total $4 090 000 2 423 881 6,513,881 35 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (8) Long -Term Liabilities, (Continued) 2004 Tax Allocation Bonds In June 2004, the Commission issued $5,860,000 in Tax Allocation Bonds to finance a portion of the cost to construct a fire station, library, and community art center. The bonds consist of $3,045,000 in serial bonds which mature from 2005-2015 in amounts ranging from $220,000 to $330,000, and $1,085,000 in term bonds which matures in fiscal year 2029. Interest is paid semi-annually on February 1 and August 1, at interest rates ranging from 1.50% to 5.50%. The annual debt service requirements for the 2004 Tax Allocation Bonds outstanding at June 30, 2010 are as follows: Fiscal Year Principal Interest Total 2011 $ 275,000 214,685 489,685 2012 285,000 204,880 489,880 2013 295,000 194,145 489,145 2014 305,000 182,440 487,440 2015 315,000 169,883 484,883 2016 330,000 156,413 486,413 2017 149,440 149,440 2018 149,440 149,440 2019 149,440 149,440 2020 149,440 149,440 2021 149,440 149,440 2022 149,440 149,440 2023 - 149,440 149,440 2024 - 149,440 149,440 2025 149,440 149,440 2026 149,440 149,440 2027 345,000 140,775 485,775 2028 360,000 123,150 483,150 2029 380,000 104,650 484,650 2030 400,000 84,150 484,150 2031 420,000 61,600 481,600 2032 445,000 37,813 482,813 2033 465,000 12,788 477,788 Total $4,620,000 3.181,772 7,801.772 36 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (8) Long -Term Liabilities, (Continued) 2005 Series A Tax Allocation Bonds In January 2005, the Commission issued $27,940,000 in Tax Allocation Bonds, Series A for the purpose of refunding the Commission's 2001 Series A Tax Allocation Bonds. Interest on the bonds is payable semiannually on August 1 and February 1, commencing August 1, 2005, at rates ranging from 2.9% to 4.85% per annum. The annual debt service requirements for the 2005 Series A Tax Allocation Bonds outstanding at June 30, 2010 are as follows: Fiscal Year Principal Interest Total 2011 $ 2,125,000 879,725 3,004,725 2012 3,060,000 788,350 3,848,350 2013 3,200,000 650,650 3,850,650 2014 3,345,000 503,450 3,848,450 2015 3,505,000 346,235 3,851,235 2016 3,670,000 177,995 3,847,995 Total $18,905,000 3,346,405 22,251,405 2005 Series B Tax Allocation Bonds In January 2005, the Commission issued $9,840,000 in Tax Allocation Bonds, Series B for the purpose of refunding the Commission's 2001 Series B Tax Allocation Bonds. Interest on the bonds is payable semiannually on August 1 and February 1, commencing August 1, 2005, at rates ranging from 3.8% to 5.25% per annum. 37 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (8) Long -Term Liabilities, (Continued) The annual debt service requirements for the 2005 Series B Tax Allocation Bonds outstanding at June 30, 2010 are as follows: Fiscal Year Principal Interest Total 2011 $ 444,693 444,693 2012 - 444,693 444,693 2013 - 444,693 444,693 2014 444,693 444,693 2015 444,693 444,693 2016 - 444,693 444,693 2017 760,000 444,693 1,204,693 2018 790,000 415,813 1,205,813 2019 825,000 385,003 1,210,003 2020 855,000 352,003 1,207,003 2021 890,000 317,803 1,207,803 2022 570,000 277,753 847,753 2023 595,000 253,528 848,528 2024 780,000 227,943 1,007,943 2025 815,000 194,013 1,009,013 2026 855,000 153,263 1,008,263 2027 555,000 110,513 665,513 2028 435,000 81,375 516,375 2029 250,000 58,538 308,538 2030 200,000 45,413 245,413 2031 210,000 34,913 244,913 2032 220,000 23,888 243,888 2033 235,000 12,338 247,338 Total $_9 840.000 6,056,951 15,896,951 38 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (8) Long -Term Liabilities, (Continued) 2003 A HUD 108 Bond The City issued $6,900,000 of HUD 108 Bonds, Series A on August 7, 2003 to provide funds for the constriction of a fire station. The bonds mature annually through 2024 in the amount ranging from $170,000 to $635,000 beginning in 2005. The interest of the bonds is payable semi-annually on each February 1 and August 1, commencing February 1, 2004. The annual debt service payments for the bonds outstanding are as follows: Fiscal Year Principal Interest Total 2011 $ 245,000 297,269 542,269 2012 260,000 286,413 546,413 2013 280,000 274,117 554,117 2014 305,000 260,227 565,227 2015 325,000 244,850 569,850 2016 350,000 227,967 577,967 2017 380,000 209,233 589,233 2018 410,000 188,528 598,528 2019 440,000 165,847 605,847 2020 475,000 141,044 616,044 2021 510,000 113,975 623,975 2022 545,000 84,640 629,640 2023 590,000 52,770 642,770 2024 635,000 18,066 653,066 Total $5.750,000 2,564,946 8,314,946 Advance from City In 2010 the City of National City advanced to the Community Development Commission $739,966 at an interest rate of 3.96% to be paid back over 10 years. Accrued interest and principal payments are due on an annual basis. The amount outstanding as of June 30, 2010 is $739,966. Note Payable The mortgage payable is secured by a deed of trust, bears interest at 6.5% and is payable to GMAC in the amount of $3,718,928. The note is being repaid in monthly installments of $30,005, including interest, through August 2019. The note is insured by HUD and is secured by substantially all property and equipment of the Morgan Towers Enterprise Fund. 39 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (8) Long -Term Liabilities, (Continued) The annual principal payments of the note payable outstanding at June 30, 2010 are as follows: Fiscal Year Principal Interest Total 2011 $ 204,777 155,283 360,060 2012 218,492 141,568 360,060 2013 233,124 126,936 360,060 2014 248,736 111,324 360,060 2015 265,395 94,665 360,060 2016 283,170 76,890 360,060 2017 302,136 57,924 360,060 2018 322,368 37,692 360,060 2019 343,957 16,103 360,060 2020 59.507 503 60,010 Total $2,481.662 818 888 3,300.550 Defeasance of Debt As of June 30, 2010, the outstanding balance of defeased issues are as follows: 2001 Series A Tax Allocation Bonds (Series A & B) 1998 Tax Allocation Bonds (9) Commitments and Contingencies $34,105,000 11,930,000 Grant funds received by the Commission are subject to review by the grantor agencies. Such audits could lead to requests for reimbursements to the grantor agencies for expenditures disallowed under terms of the grant. The management of the Commission believes that such disallowances, if any, will not be significant. (10) National City Joint Powers Financing Authority The National Joint Powers Financing Authority ("JPFA") was created pursuant to a joint exercise of powers agreement entered into by and between the Commission and the City of National City on April 16, 1991. The purpose of such agreement was to provide for the financing and constriction of the new police facility and Community Center. The JPFA is administered by a commission consisting of the members of the City Council and all voting power of JPFA resides in the Commission. 40 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (11) Expenditures in Excess of Appropriations Expenditures for the year ended June 30, 2010 exceeded the appropriations of the following funds: Budget Actual Variance Special Revenue Funds: Section 8 Housing Assistance $9,268,420 9,418,147 (149,727) (12) Pledged Revenues The Commission has a number of debt issuances outstanding that are collateralized by the pledging of certain revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented in the accompanying notes. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes. For the current year, debt service payments as a percentage of the pledged gross revenue (or net of certain expenses where so required by the debt agreement) are indicated in the table below. These percentages also approximate the relationship of debt service to pledged revenue for the remainder of the term of the commitment: Description of Pledged Revenue Tax increment revenues Annual Amount of Pledged Revenue (net of expenses, where required) $11,184,289 41 Annual Debt Service Payments (of all debt secured by this revenue) Debt Service as a Percentage of Pted ed Revenue 4,021,282 36% COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (13) Prior Period Adjustment The accompanying financial statements include adjustments that resulted in the restatements of beginning fund balances/net assets. The following summarizes the effect of the prior period adjustments to beginning fund balance as of July 1, 2009: Fund balance -beginning of year, as previously reported To recognize revenues earned in prior year previously deferred To adjust land held for resale for transactions improperly recorded or unrecorded in prior years Fund balance -beginning of year, as restated Capital Projects Fund — Redevelopment Fund HOME Program Special Revenue Fund $16,213,769 4,217,703 835,000 (427,350) $17 048,769 3.790 353 The following summarizes the effect of the prior period adjustments to beginning net assets as of July 1, 2009: Net Assets -beginning of year, as previously reported To record notes receivable previously unrecorded in prior years Net Assets -beginning of year, as restated 42 Government -Wide Statement of Net Assets $ (3,121,413) 9,975,342 $ 6,853,929 REQUIRED SUPPLEMENTARY INFORMATION 43 (This page intentionally left blank) 44 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to the Required Supplementary Information Year ended June 30, 2010 (1) Budgetary Information The Commission adopts an annual budget prepared on the modified accrual basis of accounting for all governmental fund types. The Executive Director is required to prepare and submit to the Commission Board of Directors the annual budget of the Commission and administer it after adoption. Any revisions that alter the total appropriations must be approved by the Board of Directors. All annual appropriations lapse at fiscal year-end except for unexpended purchase orders or contracts and unexpended appropriations for capital projects. Total expenditures may not legally exceed total appropriations at the fund level. (2) Required Disclosures Expenditures for the year ended June 30, 2010 following major special revenue fund: Budget Special Revenue Funds: Section 8 Housing Assistance S9,268,420 45 exceeded the appropriations of the Actual Variance 9,418,147 (149,727) COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Community Development Block Grant - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Revenues: Subventions and grants Total revenues Budgeted Amounts Original Final Actual Variance with Final Budget Positive (Negative) $ 1,107,495 1,107,495 817,696 (289,799) 1,107,495 1,107,495 817,696 (289,799) Expenditures: Current: Personnel services 62,260 62,260 79,332 (17,072) Special services 11,355 11,355 3,069 8,286 Community development 247,914 247,914 218,991 28,923 Culture and leisure 83,130 83,130 76,676 6,454 Capital outlay 863,439 863,439 253,729 609,710 Debt Service: Principal 225,000 (225,000) Interest and fiscal charges 1,776 1,776 170,776 (169,000) Total expenditures 1,269,874 1,269,874 1,027,573 242,301 Excess (deficiency) of revenues over expenditures (162,379) (162,379) (209,877) (47,498) Other financing sources (uses): Transfers from the City - 394,000 394,000 Transfers in - - 128,489 128,489 Transfers out (241,334) (241,334) - 241,334 Total other financing sources (uses) (241,334) (241,334) 522,489 763,823 Net change in fund balance (403,713) (403,713) 312,612 716,325 Fund balance (deficit), beginning of year (37,064) (37,064) (37,064) - Fund balance (deficit), end of year $ (440,777) (440,777) 275,548 716,325 46 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Section 8 Housing Assistance - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Revenues: Subventions and grants Other income Total revenues Budgeted Amounts Original Final $ 7,459,000 8,659,000 7,459,000 8,659,000 Actual 9,704,442 75 Variance with Final Budget Positive (Negative) 1,045,442 75 9,704,517 1,045,517 Expenditures: Current: Personnel services 837,244 837,244 861,884 (24,640) Special services 31,739 31,739 15,902 15,837 Community development 7,827,237 8,399,437 8,540,361 (140,924) Total expenditures 8,696,220 9,268,420 9,418,147 (149,727) Excess (deficiency) of revenues over (under) expenditures (1,237,220) (609,420) 286,370 895,790 Other financing sources (uses): Transfers in 1,215,884 1,215,884 608,152 (607,732) Total other financing sources (uses) 1,215,884 1,215,884 608,152 (607,732) Net change in fund balance (21,336) 606,464 894,522 288,058 Fund balance, beginning of year 184,513 184,513 184,513 - Fund balance, end of year S 163,177 790,977 1,079,035 288,058 47 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY IIUD Program Income - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Revenues: Interest income Other income Total revenues Expenditures: Current: Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) $ 18,565 18,565 396 396 18,961 18,961 Community development 1,008,553 1,008,553 86,924 921,629 Culture and leisure Debt service: Principal 1,254,500 1,254,500 - 1,254,500 Interest and fiscal charges 1,036,650 1,036,650 137,786 898,864 Total expenditures 3,299,703 3,299,703 224,710 3,074,993 Excess (deficiency) of revenues over expenditures (3,299,703) (3,299,703) (205,749) 3,093,954 Other financing sources (uses): Transfer to City of National City - (200,131) (200,131) Transfers out - (1,056,370) (1,056,370) Total other financing sources (uses) (1,256,501) (1,256,501) Net change in fund balance (3,299,703) (3,299,703) (1,462,250) 1,837,453 Fund balance, beginning of year 3,265,382 3,265,382 3,265,382 Fund balance (deficit), end of year $ (34,321) (34,321) 1,803,132 1,837,453 48 COMMUNITY DEVELOPMENT COMMISSION OF TIIE CITY OF NATIONAL CITY HOME Program - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues: Subventions and grants $ 1,201,730 1,201,730 631,387 (570,343) Interest income 79,788 79,788 Total revenues 1,201,730 1,201,730 711,175 (490,555) Expenditures: Current: Personnel services 72,784 72,784 39,905 32,879 Special services 10,781 10,781 4,778 6,003 Community development 1,016,317 1,016,317 240,445 775,872 Total expenditures 1,099,882 1,099,882 285,128 814,754 Net change in fund balance 101,848 101,848 426,047 324,199 Fund balance, beginning of year, as restated 3,790,353 3,790,353 3,790,353 Fund balance, end of year $ 3,892,201 3,892,201 4,216,400 324,199 49 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Low and Moderate Income Housing Program - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Budgeted Amounts Original Final Actual Variance with Final Budget Positive (Negative) Revenues: Property tax allocated $ 2,808,046 2,808,046 2,796,072 (11,974) Interest income 200,000 200,000 264,663 64,663 Total revenues Expenditures: Current: Personnel services Community development Total expenditures Excess (deficiency) of revenues over expenditures 3,008,046 3,008,046 3,060,735 52,689 191,489 191,489 97,081 94,408 686,643 686,643 573,831 112,812 878,132 878,132 2,129,914 2,129,914 670,912 207,220 2,389,823 259,909 Other financing sources (uses): Transfers in 927,881 927,881.00 Transfers out (2,042,002) (2,042,002) (1,434,245) 607,757 Total other financing sources (uses) (2,042,002) (2,042,002) (506,364) 1,535,638 Net change in fund balance 87,912 87,912 1,883,459 1,795,547 Fund balance, beginning ofyear 10,991,134 10,991,134 10,991,134 - Fund balance, end ofyear $ 11,079,046 11,079,046 12,874,593 1,795,547 50 SUPPLEMENTARY SCHEDULES 51 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Redevelopment Fund - Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Budgeted Amounts Original Final Actual Variance with Final Budget Positive (Negative) Revenues: Property tax allocated $ 11,232,183 11,232,183 11,184,289 (47,894) Interest income 33,746 33,746 Total revenues 11,232,183 11,232,183 11,218,035 (14,148) Expenditures: Current: Special services 10,000 10,000 10,089 (89) Community development 7,470,315 7,470,315 7,395,921 74,394 Debt service: Principal payments 2,225,000 2,225,000 2,225,000 - Interest and fiscal charges 1,832,122 1,832,122 1,796,282 35,840 Total expenditures 11,537,437 11,537,437 11,427,292 110,145 Excess (deficiency) of revenues over expenditures (305,254) (305,254) (209,257) 95,997 Other financing sources (uses): Transfers in 826,093 826,093 826,093 Total other financing sources (uses) 826,093 826,093 826,093 Net change in fund balance 520,839 520,839 616,836 95,997 Fund balance, beginning of year 4,154,814 4,154,814 4,154,814 - Fund balance, end of year $ 4,675,653 4,675,653 4,771,650 95,997 52 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Redevelopment Fund - Capital Projects Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2010 Revenues: Subventions and grants Interest income Other income Total revenues Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) $ 160,066 160,066 102,104 102,104 154,996 154,996 368,251 213,255 154,996 154,996 630,421 475,425 Expenditures: Current: Personnel services 2,855,520 2,855,520 2,368,905 486,615 Special services 587,639 587,639 159,752 427,887 Community development 27,544 27,544 217,317 (189,773) Capital outlay 3,742,423 3,742,423 2,034,918 1,707,505 Total expenditures 7,213,126 7,213,126 4,780,892 2,432,234 Excess (deficiency) of revenues over(under)expenditures (7,058,130) (7,058,130) (4,150,471) 2,907,659 Other financing sources: Transfer to City of National City (666,667) (666,667) (666,667) Proceeds of advance from City - 739,966 739,966 Total other financing sources (666,667) (666,667) 73,299 739,966 Net change in fund balance (7,724.797) (7,724,797) (4,077,172) 3,647,625 Fund balance, beginning of year, as restated 17,048,769 17,048,769 17,048,769 - Fund balance, end of year $ 9,323,972 9,323,972 12,971,597 3,647,625 53 (This page intentionally left blank) 54 Mayer Hoffman McCann P.C. An Independent CPA Firm 2301 Dupont Drive, Suite 200 Irvine, California 92612 949-474-2020 ph 949-263-5520 fx www.mhm-pc.com Board of Directors Community Development Commission of the City of National City National City, California REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS We have audited the financial statements of the Community Development Commission of the City of National City ("Commission"), a component unit of the City of National City as of and for the year ended June 30, 2010, and have issued our report thereon dated December 23, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Commission's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control over financial reporting. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be deficiencies, significant deficiencies, or material weaknesses and therefore there can be no assurance that all such deficiencies have been identified. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider items that have been described in the accompanying Schedule of Findings and Recommendations to be significant deficiencies in internal control. The City's written responses to the matters communicated herein have not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. We note certain matters we reported to the management of the City of National City in a separate letter dated December 23, 2010. 55 Board of Directors Community Development Commission of the City of National City National City, California Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of. laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions included those provisions of laws and regulations identified in the Guidelines for Compliance Audits of California Redevelopment Agencies, issued by the State Controller and as interpreted in the Suggested Auditing Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies, issued by the Governmental Accounting and Auditing Committee of the California Society of Certified Public Accounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The result of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. However, we noted other matters involving compliance with respect to the items tested, the Commission complied, in all material respects, with the provisions referred to in the preceding paragraph, except for three instances that are described as follows: There is one parcel of land held for resale purchased with low and moderate income housing funds that was held beyond five years. Health & Safety Code §33334.16 requires Agencies to initiate activities to develop properties purchased with low and moderate income housing funds within five years from the date of acquisition. If development activities have not begun within this period, the legislative body may adopt a resolution extending the period for one time, not to exceed five years. The parcel was purchased in 2003 and had not been sold as of June 30, 2010. We were also not provided any evidence that a resolution was adopted extending the time period. On or before December 31, 1994, and each five years thereafter, Health and Safety Code §33490 requires each agency that has adopted a redevelopment plan prior to December 31, 1993, to adopt, after a public hearing, an implementation plan that shall contain the specific goals and objectives of the agency for the project area, the specific programs, including potential projects, and estimated expenditures proposed to be made during the next five years, and an explanation of how the goals and objectives, programs, and expenditures will eliminate blight within the project area and implement the requirements of Section 33333.10, if applicable, and Sections 33334.2, 33334.4, 33334.6, and 33413. The Agency was not in compliance with this requirement. Health & Safety Code §33080.1 requires Agencies to annually report on their Low and Moderate Income Housing Fund and housing activities. During our review of this annual report it was noted that certain amounts being reported for fiscal year ended June 30, 2009 materially did not agree to the Commissions' audited financial statements. This report is intended solely for the information and use of management of the National City Community Development Commission, Board of Directors; and the State Controller and is not intended to and should not be used by anyone other than these specified parties. Irvine, California December 23, 2010 56 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Schedule of Findings and Recommendations Year ended June 30, 2010 (2010-01) Reporting of Notes Receivable During the audit, Finance Department staff identified 6 different loans, which in the aggregate totaled approximately $9.5 million dollars, which were issued by the Community Development Commission (CDC) in previous years dating hack to 1995 fiscal years. These agreements were entered into for appropriate Commission activities; however, these transactions were not reported in the accounting system as receivables of the CDC. These unreported transactions resulted in restatement of fund balance and net assets in the City and CDC's financial statements. The proper recording of receivables allow the City and CDC to monitor these funds and projects to insure that funds will be repaid in accordance with the terms of the agreement. Recommendation We recommend that Community Development Commission and City Finance Department staff develop policies and procedures for communicating, documenting, and recording of significant loan transactions to insure that activities of the Commission are properly reflected in the accounting records. 'These policies and procedures should also include enhanced monitoring controls over the loans issued to ensure repayment is appropriately recorded and that the monies are being used in accordance with the agreements terms and conditions. Management's Responses Regarding Corrective Action Taken or Planned We concur with the recommendation and Finance staff will develop policies and procedures on recording Notes Receivables. It should be noted that the six different loans totaling $9.5 million were entered into as early as 1995 and pre -dates existing management. (2010-02) I nternal Service Fund Charges During our audit, we noted that the method for determining and allocating internal service fund charges to other departments and funds of the City had not been appropriately updated. During the 2010 fiscal year, the revenues received by the City's internal service funds were unchanged from 2009. Proper charges from internal service plans should be determined during the budgeting process and should reflect the actual cost incurred to provide the services rendered by the internal service fund. This process should be updated, reviewed, and approved on an annual basis. 57 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Schedule of Findings and Recommendations (Continued) (2010-02) I ntemal Service Fund Charges, (Continued) Recommendation We recommend that the City perform a reconciliation of estimated expenses versus actual expenses, and to make the appropriate journal entries so that internal services funds are fully reimbursed for actual costs incurred or to insure user departments are not over charged should actual expenses be less than budget. Management's Responses Regarding Corrective Action Taken or Planned We concur with the recommendation Management is in the process of contracting services to perform a full review of the internal fund charge formula. With the merger of the Community Development Commission's operations with the City of National City as well as the other City organizational changes, the internal charge methodology requires a more detailed review to ensure all departments are being charged appropriately. Once the methodology has been approved, the finance staff will reconcile estimated expenses vs actual expenses and adjust the charges accordingly. The internal services charges will be updated on an annual basis. (2010-03) I nterfund Transactions The proper use of short term interfund transactions (due to/from other funds) are used to eliminate deficits of cash in particular funds or to report short terms loans between funds that are due and payable within 12 months. Long-term loans between funds of the City are generally due within more than one year (advances to/from other funds), and they may accrue interest to the lending fund and should be approved by City Council. During the June 30, 2010 audit, we noted that the interfund accounts are not being used by the City in the aforementioned situations. This has resulted in numerous funds of the City having both receivables and payables to other funds, and in many cases, the funds that are receiving these loans have adequate cash balances to support their operations. Recommendation We recommend the interfund accounts that are a result long term borrowing need to be formally approved by Council and document these interfund loans as long-term advances between the borrowing funds and funds from which an advance was made. We also recommend that the City implement and document monitoring controls to insure that interfund borrowing does not affect restricted funds and to implement procedures to insure that the interfund accounts are not used to record routine or monthly transactions. 58 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Schedule of Findings and Recommendations (Continued) (2010-03)1 nterfund Transactions, (Continued) Management's Responses Regarding Corrective Action Taken or Planned We concur with the recommendation. The financial accounting system has been programmed to record entries as short term interfund transactions (due to/due from). The Finance Director will work closely with the city's accounting software programmers to correct the system generated entry and use the short term interfund transactions only as needed. (2010-04) Adjustments Detected D uring the Audit Process The Auditing Standards requires that the auditor include in the report of significant deficiencies any material adjustments detected by the audit process. For the year in June 30, 2010, material adjustments detected by the audit process were as follows. • Accrual payroll adjusted by $187,202 to reflect additional liabilities associated with payroll incurred as of June 30, 2010. • Increased capital assets, cash with fiscal agent and recorded long-term capital lease in the amount of $507,000, $1,248,323, and $1,755,160, respectively, relating to a transaction entered into by the City, but not recorded in the City's general ledger. • Recorded interest receivable as of June 30, 2010 in certain restricted funds to properly reflect those funds income and pooled cash balances at year end. • Reduced interfund loans reported in restricted funds due to the fact that the borrowing funds had adequate pooled cash balances and to reduce the interfund loans in restricted funds of the City. Recommendation Paragraph 15 of the Statement on Auditing Standards No. 115 specifies that material adjustments identified through the audit process are an indication of weaknesses in an entity's internal control structure. Efforts should be made to enhance the City's year end closing procedures to include areas that resulted in audit adjustments in 2010. Management's Responses Regarding Corrective Action Taken or Planned We concur with the recommendation. The finance staff will update the year end closing procedures to ensure that all material adjustments are detected and recorded. 59 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Schedule of Findings and Recommendations (Continued) (2010-05) Consolidation of Funds in the Accountin g System Currently, the City has over one hundred funds in their accounting system. Although some funds are required to be reported separately, the majority of the City funds may be combined into the same fund if they are similar in nature (i.e. certain grants). Different revenue and expenditure accounts may be used to segregate those funds that are combined into one in order to continue to account for them separately. Furthermore, during the fiscal year ended June 30, 2011, they City will have to implement Governmental Accounting Standards Board Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions, which will further require the City to potentially consolidate certain funds for financial reporting purposes; having such a significant number of funds to analyze will require considerable efforts from City and Finance Department staff. Recommendation We recommend that the City evaluate each fund of the City and determine if there is an appropriate need to have a separate fund for the identified activities. Funds that are determined to not meet those criteria should be closed and reported with the General Fund. Through this process, the City used consider the impacts of GASB 54 to ensure that the accounting records will be appropriate for these new reporting standards. Management's Responses Regarding Corrective Action Taken or Planned We concur with the recommendation. Finance staff have begun review of the funds in the accounting system and will recommend consolidation of funds to the City Manager. In addition, the city will consider contracting services for the implementation of GASB 54 to ensure compliance with the new reporting standard. 60 ITEM #23 1 /25/11 CLOSED SESSION REPORT (CITY ATTORNEY) ITEM #24 1/25/11 REQUEST TO SCHEDULE A CITY COUNCIL RETREAT (COUNCILMEMBER INITIATED)